HomeMy WebLinkAboutCOR-2022-209 - Delegated Authority-Restricted Acts Provisions
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-2022-209
SUBJECT: Delegated Authority Restricted Acts Provisions
RECOMMENDATION:
That in the event the provisions of Section 275 of the Municipal Act, as amended, come
into force and effect between Nomination Day and the end of the outgoing c
the Chief Administrative Officer is granted authority to approve expenditures or other
liabilities which are currently unbudgeted and with a value in excess of $50,000; and,
That the Mayor and Clerk be authorized to execute agreements that have been approved
by the Chief Administrative Officer during this period, subject to the satisfaction of the
City Solicitor; and further,
That any approvals granted by the Chief Administrative Officer during this period be
reported to council for information at the earliest opportunity following the Inaugural
Meeting of the new City Council.
REPORT HIGHLIGHTS:
The purpose of this report is to delegate authority for certain duties to the CAO, as
prescribed by the Municipal Act, should City Council become subject to decision-making
restrictions acts known as lame duck provisions.
This report supports the delivery of core services.
BACKGROUND:
Section 275 of the Municipal Act (the Act) establishes decision-making restrictions that may be
placed on a council during an election year, often referred to as lame duck provisions. There are
two periods during an election year where a council may be subject to these provisions:
1. Post-Nomination Day (after August 19, 2022) to Election Day (October 24, 2022): The
determination of lame duck status will be determined by the City Clerk by August 22,
2022, following the certification of candidates for the 2022 municipal election. If less than
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75% of an existing council (9 members of Kitchener City Council) are running for re-
election, the restrictions set out within the Act will apply.
2. Post-Election Day (after October 24, 2022) to Inauguration of the New Council (November
21, 2022): The official election results are declared by the City Clerk shortly after Election
Day. If less than 75% of the incumbent council members have been re-elected, the
restrictions set out within the Act will apply.
The restrictions set out in Section 275 of the Act pertain to the following actions:
a) The appointment or removal from office of any officer of the municipality;
b) The hiring or dismissal of any employee of the municipality;
c) The disposition of any real or personal property of the municipality which has a value
exceeding $50,000 at the time of disposal; and
d) Making any expenditures or incurring any other liability which exceeds $50,000.
Council can make provision for business continuity in the event of a lame duck scenario through
delegated authority. Some delegations are already in place, while others are typically approved
by Council once every four years in advance of the election. The purpose of this report is to
authorize additional time-limited delegations of authority for unbudgeted expenditures in the
event they should be required.
REPORT:
Whether City Council will be subject to lame duck provisions cannot be determined until after
Nomination Day on August 19, 2022, and/or following the municipal election on October 24,
2022. Delegating authority to the CAO in accordance with Section 275 of the Act, however, must
be made before Nomination Day (August 19, 2022).
Appointment and Dismissal of Staff: the CAO has responsibility under Chapter 115 of
the Municipal Code for managing the day-to-day administrative and operational functions
of the corporation and is responsible for full control and direction of all City employees.
As such, no additional delegation is required.
Disposition of Property: the CAO is authorized by council resolution dated August 25,
2014, to approve the disposition of City property, the total value of which is $125,000 or
less including executing any documentation, satisfactory to the City Solicitor and in
accordance with the provisions contained within that resolution. Staff do not envision a
scenario where additional delegation would be required prior to the new term of council.
As such, no additional delegation is required.
Unbudgeted Expenditures: -law provides authority to approve
any contract award that would not be permitted for approval by Council under Sections
275 (1) to (4.1) of the Municipal Act, 2001 (otherwise known as "Restricted Acts After
Nomination Day"), provided the total costs are within the most recently approved budget
adopted by the Council before nomination day in the election and that an information only
report regarding these Contract awards is brought to Council at its next meeting. It is
recommended that the CAO be delegated authority to approve unbudgeted
expenditures or liabilities in excess of $50,000. This delegation has been made in
previous election years and is done in order to ensure business continuity in the event
that an unforeseen expenditureis required.It is unlikely to be required but is prudent to
have in place.
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 The recommendation has no impact on the Operating Budget.
Without delegation of authority per Section 275 of the Act, there will be no ability to make
unbudgeted expenditures or incur any other liability which exceeds $50,000, should it be
required.
COMMUNITY ENGAGEMENT:
INFORM nce of the
council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
COR-18-003 Delegated Authority
APPROVED BY: Dan Chapman, Chief Administrative Officer