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HomeMy WebLinkAboutCOR-2022-208 - Municipal Election Compliance Audit Committee MECAC Corporate Services Department www.kitchener.ca REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: May 16, 2022 SUBMITTED BY: Amanda Fusco, Director of Legislated Services & City Clerk, 519-741- 2200 ext. 7809 PREPARED BY: Justin Watkins, Manager of Service Coordination & Improvement, 519- 741-2200 ext. 7203 WARD(S) INVOLVED: N/A DATE OF REPORT: April 28, 2022 REPORT NO.: COR-2022-208 SUBJECT: Municipal Election Compliance Audit Committee (MECAC) RECOMMENDATION: That a joint Municipal Election Compliance Audit Committee be established for the 2022- 2026 term of Council in accordance with the Terms of Reference in Attachment A and, That the City Clerk be delegated authority to review and revise the Terms of Reference throughout the term of the Committee in accordance and in consultation with other participating municipalities; and That the City Clerk be delegated authority to select and appoint members of the Municipal Election Compliance Audit Committee, in consultation with the other participating municipalities; and further; and That remuneration of $200 per diem plus the applicable mileage rate be approved for members of the Municipal Election Compliance Audit Committee. REPORT HIGHLIGHTS: The purpose of this report is to provide Council with information regarding the creation of a joint Municipal Election Compliance Audit Committee with the Region of Waterloo participating members and draft Terms of Reference with respect to the Committee. This report supports the delivery of core services. BACKGROUND: Section 83.37 (1) of the Municipal Elections Act (the Act) requires every municipality to appoint a compliance audit committee no later than October 1 of an election year for a 4-year term. The compliance audit committee's mandate is to determine if an allegation made by an elector of non-compliance with the Act regarding the financial statement of a candidate or third party advertiser warrants an audit by a certified auditor. If applicable, the compliance audit *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. committee also receives the Clerk's report identifying an apparent contravention of the contribution limits of a candidate or third-partyadvertiser. Since 2003, the councils from the Cities of Kitchener and Waterloo, the Townships of North Dumfries, Wellesley, Wilmot and Woolwich, and the Region of Waterloo have appointed a joint Municipal Election Compliance Audit Committee (the MECAC). In 2014, the City of Cambridge also became a member of the MECAC. In 2018, the City of Guelph also became a member of the MECAC. A joint MECAC better serves the participating municipalities because it would be difficult to find sufficient qualified individuals willing to serve on eight different committees within close proximity to one another. Additionally, all the participating councils have delegated approval of the membership appointments to the MECAC to each of their Clerks to streamline the process of establishing the MECAC and to eliminate a potential or perceived conflict of a sitting member of council. The City of Kitchener has not received a compliance audit request since the inception of the MECAC. REPORT: In 2022, a committee of Clerks from the participating municipalities reviewed the Terms of Reference for the MECAC to see if any improvements were warranted. The committee felt that while the Terms of Reference served the participating municipalities well, a few amendments were beneficial. Below are highlights of the amended Terms of Reference and staff are recommending modifications as a result of legislative changes including: Section 3 Section 4 Municipalities are no longer permitted to recover costs of auditor reports. Staff are also recommending the following administrative modifications: Section 8 Permitting meetings in person or electronically Section 8.3 Requiring agenda to be posted a minimum of two (2) business days prior to the date of the meeting Section 8.5 Increasing the remuneration rate from $175 to $200 Section 10 Revising the list of applicable legislation and adding further provisions for removal of members if unable to attend three (3) meetings in a row or unable to fulfill duties of the MECAC pool Section 12 Permitting the Clerk to develop additional administrative practices and procedures at any time Conflict of Interest Policy Adding definitions distinguishing between personal and pecuniary conflicts of interest and clarifying when conflicts are to be disclosed. The Terms with the above noted amendments reflected are attached as Attachment Aas well as the conflict of interest policy based on the Region's policy for its advisory committees (attached as Attachment B), which will govern how the MECAC will conduct its business. STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: Capital Budget The recommendation has no impact on the Capital Budget. Operating Budget Administrative costs for such items as printing, mail and mileage will be funded from the Election Reserve Fund. Advertising costs incurred to solicit applications for appointment to the joint MECAC will be funded from the same reserve. The expenses associated with a compliance audit are currently unfunded and would represent a variance within the Election Reserve Fund if a compliance audit were required. COMMUNITY ENGAGEMENT: INFORM council / committee meeting. COLLABORATE - Consultations and coordination with participating Area Clerks have taken place. PREVIOUS REPORTS/AUTHORITIES: Report COR-18-004 Municipal Election Compliance Audit Committee (MECAC) APPROVED BY: Dan Chapman, Chief Administrative Officer ATTACHMENTS: Attachment A Municipal Election Compliance Audit Committee (MECAC) Terms of Reference Attachment B Municipal Election Compliance Audit Committee (MECAC) Advertisement Municipal Election Compliance Audit Committee (MECAC) Terms of Reference Refer to Section 88.37 of the Municipal Elections Act, 1996 1. Name of Committee The Participating Municipalities have agreed to create a joint Municipal Election Compliance Audit Committee, which is named: Municipal Election Compliance Audit Committee (MECAC) 2. Definitions Municipal Elections Act, 1996 as amended. means a situation in which a member is in a position to derive personal benefit from actions or decisions made in their official capacity on the Committee gain or loss a Member may experience, directly or indirectly, from their membership on the Committee. means the municipality where the application for a compliance audit is received. A Host Municipality can only receive applications for candidates or third parties registered in its municipality. participate in a joint MECAC and includes: The City of Cambridge The City of Guelph The City of Kitchener The City of Waterloo The Township of North Dumfries The Township of Wellesley The Township of Wilmot The Township of Woolwich The Region of Waterloo 4015451 Page 1 of 7 3. Duration The term of office for the committee shall be from November 15, 2022 to November 14, 2026 to deal with applications from the 2022 election and any by-elections The establishment of this Committee and its terms of reference will be reviewed prior to the start of the next term of Council. 4. Mandate The MECAC will operate within the provisions of the Act. nder Sections 88.33 or 88.35 of the Act from an elector to determine if the application should be granted or rejected. If granted, the MECAC will appoint an auditor, receive and consider the , and decide whether legal proceedings should commence or if there were reasonable grounds for the application. contraventions, prepared under Section 88.34 of the Act. Within 30 days after C shall consider it and decide whether to commence a legal proceeding against a contributor for an apparent contravention. 5. Advertising, Applications and MECAC Pool Selection The terms of reference and application form will be posted, as a minimum, on the municipal websites of the member municipalities to solicit membership for the MECAC pool. Staff will also contact and solicit those individuals with the qualifications listed in Section 6 of these Terms of Reference. In addition, previous MECAC members may be contacted, along with direct contacts by municipal staff. All applicants will be required to complete an application form outlining their qualifications and experience. The Clerks of the Participating Municipalities will meet to review the applications. A pool of up to ten (10) members for MECAC will be developed and approved by the Clerks of the Participating Municipalities. Appointments to the MECAC pool will be approved by a majority vote of the Clerks. 6. MECAC Pool Eligibility 4015451 Page 2 of 7 Members of the MECAC pool will be selected based on the following: demonstrated knowledge and understanding of municipal election financing rules; proven analytical and decision-making skills; experience working on a committee, task force or similar setting; availability and willingness to attend meetings during the day or evening; excellent oral and written communication skills expertise in: o accounting and audit; o academic with expertise in political science or local government; o legal; o knowledge of the campaign finance rules contained in the Act. Members of the MECAC pool shall not include: members of any municipal Council represented; employees or officers of the municipalities represented; any persons who are candidates in the election for which the committee is established; or any persons who are registered third parties in the municipality in the election for which the committee is established. 7. Committee Selection When an application is made to MECAC, the Clerk of the Host Municipality shall determine the composition and membership of the Committee. The Committee shall be composed of not fewer than three (3) and not more than seven (7) members from the MECAC pool. To determine membership, the Clerk of the Host Municipality shall contact members of the pool to form the membership of the Committee to hear the application. It is at the full discretion of the Clerk of the Host Municipality to determine the order that members from the MECAC pool will be contacted. The Chair of the MECAC will be selected by resolution at the start of the first meeting of each MECAC application by the members present. 8. Committee Meetings Meetings of the Committee shall be open to the public. The meetings may be held either in person or electronically at the host municipal 4015451 Page 3 of 7 8.1 Closed Meetings of Committees MECAC may deliberate in closed session as needed and will follow the procedures of the Host Municipality. 8.2 Timing of Meetings Meetings shall be called by the Clerk of the Host Municipality as required under the provisions of the Municipal Elections Act. The periods for receiving applications and holding meetings shall be as established by the Municipal Elections Act. The Clerk of the Host Municipality will be responsible for determining the location of the meeting, scheduling the meeting and communicating the meeting details directly to the Committee members. Subsequent meetings will be held at the call of the Chair in consultation with the Clerk of the Host Municipality. 8.3 Meeting Notices, Agenda and Minutes The agenda shall constitute notice. A minimum of two (2) business days prior to the date of each meeting, not including weekends or holidays, the agendas and minutes of the Minutes of each meeting shall outline the general deliberations and specific actions and recommendations that result. The Clerk of the Host Municipality is responsible for the administrative duties associated with MECAC, but may contact the Clerk of any of the participating municipalities for assistance with minutes or any other matters if required. 8.4 Meeting Procedures Quorum will be a majority of the members of the MECAC. Voting by consensus will be used for decisions of the Committee or a majority vote by members, usually performed by the show of hands. The Chair is also entitled to a vote on MECAC. Meetings will be governed by the Procedural By-law of the Host Municipality and Roberts Rules of Order as required. 8.5 Meeting Remuneration and Expenses Members of the MECAC shall be paid a rate of $200 per meeting plus the applicable mileage rate from the Host Municipality. Expenses will be paid by the Host Municipality. 4015451 Page 4 of 7 9. Conflict of Interest Policy Members of the MECAC will conform to the Conflict of Interest Policy, attached as eference. 10. Removal of Members The current MECAC may recommend to the Clerk of the Host Municipality for the removal of a member for reasons as listed, but not limited to: the member being in contravention of the Municipal Act, 2001, the Municipal Freedom of Information and Protection of Privacy Act, the Provincial Offences Act, the Municipal Elections Act, 2001 or the Municipal Elections Compliance Audit Committee Conflict of Interest Policy; the member being in contravention of the Code of Conduct and/or Procedural By-law of the Host Municipality; or other legal issues If a member is unable to attend three meetings in a row The member becomes unable to fulfill the duties of the MECAC Pool The Clerk of the Host Municipality may select another person from the MECAC Pool if necessary. 11. Errors/Omissions The accidental omission to give notice of any meeting of the MECAC to its members, or the non-receipt of any notice by any of the members, or any error in any notice that does not affect its substance, does not invalidate any resolution passed or any proceedings taken at the meeting. Any members of the MECAC may at any time waive notice of the meeting. 12. Administrative Practices and Procedures The Terms of Reference constitute the Administrative Practices and Procedures of the Committee. Any responsibilities not clearly identified within these Terms of Reference shall be in accordance with Section 88.33 to 88.37 of the Municipal Elections Act, 1996. The Clerk of the Host Municipality, has the right to develop additional administrative practices and procedures at any time. 4015451 Page 5 of 7 Municipal Elections Compliance Audit Committee (MECAC) Conflict of Interest Policy Policy Application This policy applies to the Municipal Elections Compliance Audit Committee (MECAC) for the municipalities of the Region of Waterloo, Cities of Cambridge, Guelph, Kitchener, Waterloo, Townships of North Dumfries, Wellesley, Wilmot and Woolwich. Operating Principles: Members of the MECAC have a duty to conduct themselves in an impartial and objective manner. It is recognized that appointees have a broad range of interests and, from time to time, actual or perceived conflicts of interest or conflicts of pecuniary interest (or the appearance of such conflicts) may arise. The purpose of this policy is to enable the MECAC to deal with such conflicts in as open and appropriate a way as possible. It is understood that members of MECAC will perform their duties in such a way as to promote public confidence and trust in the integrity, objectivity and impartiality of the Committee. No member shall directly or indirectly receive any profit from his/her position, provided that an honorarium, as established in the Terms of Reference and reasonable expenses may be paid in the performance of their duties. Definitions means any individual, partnership, corporation, organization or other legal entity, which has an interest in property, objects or other assets, which are the subject matter of consideration by the Committee; means an individual in a formal partnership or in a shared ownership of a company or enterprise with a Member; is the Municipal Elections Act Compliance Audit Committee (MECAC); means a parent, child, spouse or common-law spouse of a Member; is an individual formally appointed to the MECAC in accordance with the Terms of Reference. Conflicts Conflicts of pecuniary interest arise when Members may financially benefit, directly or indirectly, from their membership on a Committee. Such involvements include, but are not limited to, the following: Members being the Affected Party or employed by or doing business with the Affected Party business with the Affected Party 4015451 Page 6 of 7 Membe business with the Affected Party A conflict of interest may be an actual or perceived conflict of pecuniary interest. The same duty to disclose applies to each. The pecuniary family or business associate are considered to also be the pecuniary interests of the Member. Full disclosure in itself does not remove a conflict of interest. Principles and procedures It is important that Members be sensitive to appearance and perception and err on the side of transparency. In case of conflicts, whether personal or pecuniary, actual, potential or apparent, Members are expected to fully disclose the potential conflict. Members shall disclose any potential conflicts to the Clerk of the Host Municipality prior to being appointed to the Committee. If a potential conflict arises while sitting on the Committee, the Member shall disclose it as soon as it arises and before the Committee makes any decisions in the matter where the conflict exists. Once such a disclosure has been made, the Member involved shall abstain from voting and shall not participate in the discussion of the matter, which gave rise to the conflict. The affected Member must not in any way, whether before during or after the meeting, attempt to influence the outcome of any discussion or voting on the matter. If the meeting at which the matter is discussed is not open to the public, in addition to the above, the Member must leave the meeting room for the duration of any discussion and voting on the matter. a result of conflict, such Members shall be identified in the minutes of the meeting. Individual Members are encouraged to seek independent advice on conflicts or potential conflicts. Quorum Where the number of Members who, by reason of conflict, are unable to participate in a meeting such that the remaining Members no longer constitute a quorum as set out in the a quorum provided there are not less than two Members present. Solicitation No Member may in any way, either overtly or otherwise, use the fact of their membership on the Committee to solicit business for their own benefit or the benefit of their immediate family or business associates. 4015451 Page 7 of 7 We are looking for you! The area municipalities of the Region of Waterloo and the City of Guelph are working together to establish a joint Municipal Elections Compliance Audit Committee (MECAC). The MECAC will review candidate or registered third-party 2022 election campaign finances. When an application is made to the MECAC, the municipality will strike a committee and invite members from a pool of accepted applicants to participate in the review of the relevant campaign finances. Positions available We are looking for up to 10 individuals to join the committee membership pool for a 4- year term ending in November 2026. Interested individuals who have financial, accounting or legal expertise and knowledge of the municipal election process are invited to apply. Applications must be submitted to the Office of the Regional Clerk for the Region of Waterloo on or before July 20, 2022 at 4:30 p.m. Need more information? Further information and the application are available online at regionofwaterloo.ca/en/regional-government/committees.aspx and at the Regional nd Floor, 150 Frederick Street Kitchener). Questions regarding the Committee or the application process may be directed to regionalclerk@regionofwaterloo.ca. 4002907