HomeMy WebLinkAboutCRPS-07-088 - Bill 130 - Municipal Act UpdateReport To: Finance and Corporate Services Committee
Date of Meeting: June 18, 2007
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: June 15, 2007
Report No.: CRPS-07-088
Subject: Bill 130 -Municipal Act Update
RECOMMENDATION:
None at this time -submitted for information and discussion purposes.
BACKGROUND:
Bill 130, The Municipal Statute Amendment Act, 2006, the "amendment"} received Royal
Assent on December 20, 2006 and most provisions became effective January 1, 2007. This
amendment, as previously reported, makes significant changes to the Municipal Act, 200. the
"Act"} as well as a number of other provincial acts as they relate to municipalities.
REPORT:
The amendment perpetuates the approach initiated with the introduction of the Municipal Act,
200, granting both upper tier and lower tier municipalities more broad permissive powers
instead of specific powers. It shows a change in Provincial philosophy towards municipal
governments as set out in the new "Purposes", section 2. of the legislation, which reads as
follows:
"Municipalities are created by the Province of Ontario to be responsible and
accountable governments with respect to matters within their jurisdiction and each
municipality is given powers and duties under this Act and many other Acts for the
purpose of providing good government with respect to those matters."
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This amendment is intended to provide more flexibility to municipalities to meet the expectation
of the communities in the course of fulfilling their responsibilities. This is confirmed by the
extensive authority given to municipalities in this amendment, as exhibited in section 8 (1) of the
Act:
"The powers of a municipality under this or any other Act shall be interpreted
broadly so as to confer broad authority on the municipality to enable the
municipality to govern its affairs as it considers appropriate and to enhance the
municipality's ability to respond to municipal issues."
The amendment clearly acknowledges that a municipality's authority to pass a by-law
respecting a matter includes the powers the municipality had on the day before the amendment
came into force. The by-laws may regulate or prohibit; require persons to do things; or provide
for a system of licenses respecting the matter and they may be general or specific in their
application and may differentiate in any way and on any basis a municipality considers
appropriate, with some exceptions. Previously, municipalities were only allowed to differentiate
by classes of persons and businesses.
The major areas of change to the Municipal Act as a result of the passage of Bill 130 are
highlighted below.
1. Municipal Powers
Municipalities now have the power to "provide any service or thing that the municipality
considers necessary or desirable for the public," subject to the rules pertaining to the spheres of
jurisdiction between glower-tier municipality and an upper-tier municipality and with this power
comes the authority to pass by-laws respecting the following matters:
a) Governance structure of the municipality and its local boards.
b) Accountability and transparency of the municipality and its operations and its local
boards and their operations.
c) Financial management of the municipality and its local boards.
d) Public assets of the municipality acquired for the purpose of exercising its authority
under this or any other Act.
e) Economic, social and environmental well-being of the municipality.
f) Health, safety and well-being of persons.
g) Services and things that the municipality considers necessary or desirable for the
public
h) Protection of persons and property, including consumer protection.
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2. Accountability and Transparency
Coinciding with the provision of expanded municipal powers, the Municipal Act has been
amended to provide Municipalities with the tools needed to provide accountability and
transparency oversight. Municipalities have the ability, 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
In this regard Kitchener has established an Accountability and Transparency Committee.
3. Council
The role of Council and the head of Council have been strengthened to ensure the
accountability and transparency of the operations of the municipality including the activities of
senior management. The role of the Head of Council has been expanded to include an
obligation to preside over Council meetings so that its business can be carried out efficiently
and effectively and to provide information and recommendations to Council with respect to the
role of Council. The Head of Council is now established as the Chief Executive Officer.
4. Delegation of Duties
The ability for a municipality to delegate some of its administrative, corporate, legislative or
quasi-judicial power and duties has been centralized and enhanced subject to the rules and
restrictions prescribed in the Act.
Further consideration of these provisions in the area of Licensing Tribunals may be
advantageous.
5. Procedural Changes regarding Meetings
The definition of meetings has been amended to remove any ambiguity. " "Meeting" means any
regular, special or other meeting of a council, of a local board or of a committee of either of
them." Municipalities are to determine the appropriate form of public notice of all open and
closed meetings.
Although the earlier drafts of the amendment provide electronic participation in council and
committee meetings open to the public this was not included in the final version of the
amendment and therefore not permitted.
6. Closed Meetings
Statutory authority to go into a closed meeting has been expanded for municipalities and local
boards to permit "a meeting to be closed to the public if the following conditions are both
satisfied:
1. The meeting is held for the purpose of educating or training the members.
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2. At the meeting, no member discusses or otherwise deals with any matter in a way
that materially advances the business ordecision-making of the council, local board
o r com m ittee."
Although this provision has not yet been proclaimed into effect, Municipalities are 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. Should an investigator not be appointed by
the municipality, such complaints may be directed to the provincial Ombudsman for
investigation.
7. licensing
A municipality may provide for a system of licenses for any business, activity, matter or thing
which effectively means the municipality can establish a permission process for any activity it
feels is within its powers. Provisions for the Licensing of businesses have been broadened and
streamlined with authority to delegate suspension power to staff, the imposition of administrative
penalties and the establishment of 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 have been removed.
8. Enforcement
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. Municipalities can establish administrative monetary penalties and procedures as
an alternative to enforcement through the courts.
Informal discussions regarding the new provisions have commenced.
9. Administrative Policies
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
The sale and disposition of land provisions are currently under review by Legal. The City
currently has a notice policy which was arrived at following an extensive review, which in the
opinion of Legal is more adequate as we move forward.
10. Corporations
The establishment of Municipal Corporations was recognized in the amendment but subject to
the regulations, which at the time of submissions to the Province in November, were unknown to
municipalities, In late December, the Province released its Regulation 599/06 which allows
municipalities to establish a corporation for the purpose of providing or doing anything that the
municipal could otherwise perform, subject to certain exceptions. A Municipality is required to
do a business cases study and consult with the public, the process of which is to be determined
now by the municipality, not prescribed as it used to be by the regulation. In order to determine
the advantage and disadvantage of establishing a municipal corporation, these regulations merit
further review, preferably in conjunction with a concept.
11. Municipal Services Boards
Municipalities can now establish Municipal Services Boards for any municipal service or
purpose, unlike the previous limitation to five specific service areas. Municipalities may
determine the size, composition, and procedures pertaining to these Boards subject the specific
limitations set out in the Act.
12. Tax Sales
Municipalities are no longer subject to the interest of the Provincial Crown, save and except
easements and restrictive covenants, should they elect to accept a notice of vesting of a
property which was the subject of an unsuccessful tax sale. Should the Municipality sell
property within seven years of the vesting of the property in the municipality, the proceeds of the
sale have to be shared with the Province, school boards, and upper tier municipality. The
amendment expands the authority of the municipality 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. In addition several other provisions have been amended to assist municipalities in
dealing with property that was the subject of an unsuccessful tax sale.
13. Provinciallnterest
Province has reserved, 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.
FINANCIAL IMPLICATIONS:
Not known at this time.
COMMUNICATIONS:
N/A
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CONCLUSION:
Legal looks upon the amendment as a giant opportunity for continuous improvement. It is
Incumbent on all staff to look for opportunities to change or improve the way the municipality
carries out its duties and responsibilities.
Lesley MacDonald,
Director of Legal Services and City Solicitor