The URL can be used to link to this page

Home My WebLink AboutCRPS-06-166 - Bill 130 - Proposed Amendments to the Municipal ActJ ~~~ KITCHF.NF R ~ ~ Corporate Services Report To: Finance and Corporate Services Committee Date of Meeting: November 20, 2006 Submitted By: Lesley MacDonald, Director of Legal Services and City Solicitor (Ext. # 2267) Prepared By: Lesley MacDonald, Director of Legal Services and City Solicitor Ward(s) Involved: N/A Date of Report: November 17, 2006 Report No.: CRPS - 06 -166 Subject: Bill 130 -Proposed Amendments to the Municipal Act RECOMMENDATION: None at this time -information submitted for discussion purposes. Council direction is requested. BACKGROUND: Bill 130, ultimately to be called The Municipal Statute Amendment Act, 2006, if passed by the province, proposes changes to the Municipal Act, 2001 as well as a number of other provincial acts as they relate to municipalities. REPORT: The proposed amendment continues with the approach started with the introduction of the Municipal Act, 2001 ("the current Act"), granting both upper tier and lower tier municipalities more broad permissive powers instead of specific powers. The province has indicated that the intent of the amendments is to provide more flexibility to municipalities to meet the expectation of the communities in the course of fulfilling their responsibilities. For purposes of this report I have highlighted below the major areas of proposed change. 1. A Part entitled "Accountability and Transparency" has been created in the Act under which municipalities would be authorized at their discretion to: • Established codes of conduct for members of Council and for local boards • Appoint an Integrity Commissioner • maintain a registry of lobbyists • Appoint an Ombudsman • Appoint an Auditor General 2. The role of Council and the head of Council has been strengthened to ensure the accountability and transparency of the operations of the municipality. 3. The amendments centralizes and enhances the ability for municipalities to delegate its powers and duties subject to the restrictions set out in the Act. 4. There are changes to the provisions pertaining to the procedural by-law including requirements that the by-law shall provide for public notice of meetings and that members of council can participate electronically in council and committee meetings open to the public but such participation does not count for purposes of determining quorum. 5. It is proposed that municipalities and local boards may close a meeting to the public, if, at the meeting no member discusses or otherwise deals with any matter in a way that materially advances the business or decision making of the Council, committee or local board. Municipalities will be authorized to appoint at its discretion an investigator to determine if as a result of a complaint the municipality has complied with the closed meeting requirements. If the event the municipality doesn't appoint an investigator, such complaints may be directed to the provincial Ombudsman for investigation. 6. Provisions for the Licensing of businesses have been broadened and streamlined with proposed authority to delegate suspension power to staff, the imposition of administrative penalties and establish increased penalties. Numerous specific requirements such as maintenance of a public list or registry, inclusion of purpose/explanation clause in the by-law and the requirement for review every five (5) years are to be removed. 7. The enforcement provisions have been replaced in its entirety to be more comprehensive and expands the authority for municipalities in regards to enforcement including the authority to establish fines for by-law offences including the imposition of minimum fines, refine powers of entry and ability to hold Directors and Officers of corporations accountable and impose fines against them. 8. A number of specific provisions have been replaced with a general requirement for municipalities to adopt and maintain policies in regard to the following: • The sale and disposition of land • Hiring of employees • Procurement of goods and services • Circumstances in which municipalities shall provide notice to the public and the form said notice shall be given • Manner in which municipalities will try to ensure the accountability and transparency of municipal operations • Manner in which municipalities will try to ensure rights of individuals affected by its decision are dealt with fairly • Delegation of its powers and duties 9. Although too many to mention, there are a number of proposed improvements to the legislation including, but definitely not limited to, the introduction of administrative penalties for the purposes of enforcing parking by-laws, broad powers to create and dissolve local boards, expansion of authority to write off taxes in certain situations where in the opinion of the Treasurer it is deemed that a tax sale would be ineffective or inappropriate, and improvement to various provisions dealing with the municipal tax sale process. 10. The proposed amendment has reserved onto the province, through the Lieutenant Governor in Council, the ability to make regulations imposing limits and conditions on the powers of a municipality under various sections and parts if it is its opinion that such regulation is necessary or desirable in the provincial interest to do so. Further, the regulation also allows them to make regulations providing that a municipality can't exercise powers in prescribed circumstances. From both a legal perspective and operational perspective, staff have identified some areas where there is further room for improvement and recognize that through a number of organizations such as the Association of Municipalities of Ontario, the Association of Municipal Managers, Clerks and Treasurers of Ontario, the Municipal Law Departments Association of Ontario, and other stake holders, these points will be addressed and presented through their organizations directly to the Standing Committee on General Government. Having said that, there are two areas within the proposed legislation that staff wish to bring to Council's attention for discussion. The first area of concern in the proposed legislation is the proposed replacement provisions with respect to the establishment of corporations. Staff were hoping that the draft legislation would broaden this provision and enhance the ability for municipalities to go forward with viable Economic Development Corporations. Unfortunately, the new provision, effectively says the same thing as the current Act, just worded a little differently. It is all premised on conditions and restrictions that may be prescribed in legislation or regulation and without benefit of seeing any of the proposed regulations, staff is not very optimistic that its concerns as expressed to the province from time to time has been addressed. The second area of interest pertains to the preservation and protection of public assets and the concern that the open meeting provisions may not always provide the appropriate opportunity for discussion in a closed meeting environment to protect the public assets held for the benefit of the community. Municipalities are often seeking or involved in public private partnerships and have other business interests which involve public assets. From time to time, it may be necessary for the municipality to protect information relating to these activities in order to pursue public private partnerships, as private enterprises need comfort that certain financial and competitive information if released to the municipality will be discussed in a confidential form. Authority to go into closed meeting to discuss information that is prohibited, or information that if were presented in a document would be prohibited, from disclosure under the Municipal Freedom of Information and Protection of Privacy Act would greatly assist municipalities in their obligation to preserve and protect public assets. I may advise that Bill 130 has received second meeting and was referred to the Standing Committee on General Government for which they are holding five (5) days of hearing. Interested parties can seek an appointment for presentation to the Committee, or they may make written submissions to the Committee Clerk by November 29, 2006. The City of Kitchener has an opportunity to appear before the Standing Committee on November 27t" should it be Council's wish that staff verbally present submissions with respect to the concerns referenced above. FINANCIAL IMPLICATIONS: Not known at this time. COMMUNICATIONS: N/A CONCLUSION: Generally, most of the changes appear to be positive and beneficial. It will not be until staff actually have an opportunity to work within the new parameters will the true benefits or possible deficiencies be identified. Staff encourage discussion regarding the two areas of concern identified on page 3 and seek Council's direction regarding submissions before the Committee. Lesley MacDonald, Director of Legal Services and City Solicitor C. Ladd T. Speck P. Houston F. McCrea S. Williams