Cipolla challenges mayoral rivals to put assets in blind trust

Conflict issue raised
By SARA ROSS Orillia PACKET & TIMES September 23 2010
Mayoral candidate Ralph Cipolla challenged Orillia’s two other mayoral candidates Wednesday to take an “extra step” by putting all of their property and businesses in a blind trust to avoid potential conflicts of interest.
“It’s a trust and transparency situation,” Cipolla said. “If you’re going to do the job, you need to represent 31,000 people in the City of Orillia and they need to know that that’s all you’re going to do.” Cipolla’s promise to put all of his assets in a blind trust if elected is unnecessary, says mayoral candidate Angelo Orsi.
“I think a blind trust does not take away the fact that you are still a shareholder at the end of the day,” Orsi said on Wednesday. “Having somebody else to manage your business doesn’t really take away the fact that you still have an interest in the holdings. Any benefit still comes to you.”
Orsi, owner of Charter Construction and the developer of the West Ridge subdivision, says he knew conflict of interest was going to be an issue brought up in his run for mayor. He has researched the Municipal Act in regards to conflict of interest and hired a lawyer for legal advice, Orsi said.
“I have no worries whatsoever to deal with any issue that may arise during my serving as mayor,” he said. “I’m a property owner like any other property owner. If it affects my lands, I declare an interest ; it is that simple.”
Cipolla owns rental properties and Collegiate Court downtown, which houses seven units. His wife Dianne owns CC Bak 2 Basics clothing store.
Though his family can make decisions on the assets, they cannot speak to Cipolla about it once they are in blind trust, he said.
The assets would remain in blind trust until he is no longer mayor, Cipolla said.
“In order to do business with Orillia, business people — investors in the City of Orillia — need to know that when a mayor sits in on a meeting to discuss their issues or their concerns about where they should locate (a) business,… that it is in the best interest of the whole community, not just one area of the community,” he said.
Mayoral candidate Tim Lauer, who does not own a business or property other than his residence, says he believes the challenge is more directed at Orsi than him.
“The voters of Orillia will have an opportunity over the next four-and-a-half weeks to evaluate Mr. Orsi’s position,” Lauer stated in an email response. “They are the ones who will ultimately decide whether or not he has a problem.”
Lauer, a real estate agent, says he is “quite comfortable” with the current process of declaring a conflict of interest.
“I would say that I have a little more faith in the public process than Mr. Cipolla,” he said.
A blind trust enables an individual to avoid possible conflict of interest by transferring assets to a fiduciary. The person establishing the trust gives up the right to information and decision-making on their assets, Cipolla said. A conflict of interest must still be declared.
According to the Municipal Conflict of Interest Act, a conflict of interest must be called if an individual’s assets could gain or lose money as the result of a decision. It also includes indirect pecuniary interests and pecuniary interests of family members.
The elected official should declare conflict of interest, advise the general nature of the conflict and withdraw from discussions and decline to vote on the issue.
The question of whether an elected official has contravened the act may be tried and determined by a judge if challenged.