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HomeMy WebLinkAboutCLD-012-07 ~pn REPORT CLERK'S DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Report #: CLD-012-07 File #: 6Pf1-;)if-OI By-law #: Date: MARCH 26, 2007 Subject: BILL 130 - MUNICIPAL STATUTE LAW AMENDMENT ACT, 2006 RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report CLD-012-07 be received for information. u~~ Reviewed by: Franklin Wu, Chief Administrative Officer PLB CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T 905-623-3379 F 905-623-6506 REPORT NO.:CLD-012-07 PAGE 2 of7 1.0 Overview On January 1, 2007, Bill 130, the Municipal Statute Law Amendment Act, 2006, came into force, with some provisions being proclaimed at a later date. The revisions to the Municipal Act (the Act) provide municipal governments with more flexibility in meeting their communities' expectations and in fulfilling their responsibilities, and place a much higher standard of transparency and accountability on municipal governments. When the Municipal Act, 2001 was enacted, a number of requirements were imposed on municipalities, which have now been removed. Some of these include: 1. Fees and Charges - The ability to charge a license fee was subject to council taking into account the cost of administering and enforcing by-laws within the municipality. 2. Regulatory By-laws - Licensing powers could only be exercised for one or more of: a) Health and safety; b) Nuisance control; and c) Consumer protection 3. Sunset Clause - Licensing by-laws no longer expire five years from the date they come into force. 4. Public Notice - The specific requirements for giving of public notice are now removed. This report provides a review of some of the key features in the revised Act. 2.0 Expanded Powers The Act now provides more emphases on broad, permissive authority than the prescriptive approach of earlier Acts. All municipalities receive the power to pass by-laws respecting: . Governance structure of the municipality and its local boards . Accountability and transparency of the municipality and its operations and of its local boards and their operations . Financial management of the municipality and its local boards . Public assets of the municipality acquired for the purpose of exercising its authority . Economic, social and environmental well-being of the municipality REPORT NO.:CLD-012-07 PAGE 3 OF 7 . Health, safety and well-being of persons . Services and things that the municipality is authorized to provide (subject to limits) . Protection of persons and property, including consumer protection Some specific details include: 1. Local and Service Boards - Municipalities now have broad permissive powers to establish, dissolve, change or impose requirements on certain local boards and have the power to establish a municipal service board for any municipal service or activity. 2. Delegation - Municipalities now have expanded authority to delegate their powers and duties to any person or body subject to certain restrictions. The delegation may be exclusive or shared with the delegated body, can be subject to limits and may always be revoked. Some specific powers and duties cannot be delegated, such as zoning by-laws, official plan approval, imposing taxes, budget approval and appoint/removing of statutory officers. Legislative and quasi-judicial powers may only be delegated to one or more members of municipal council; a body that has at least two members of which 50% are council members, council appointees, or a combination; or an officer, employee or agent of the municipality. 3. Business Regulation - Municipalities now have broad powers to license businesses, subject to certain limits. Specific new powers authorize municipalities to administratively suspend a license prior to a hearing where there is a danger to health or safety. Municipalities are now able to impose an administrative penalty over and above the fines for failure to comply with any part of a licensing system. 4. Enforcement - Municipalities now have broader enforcement abilities, such as the authority to set fines for by-law offences and an administrative power of entry to determine by-law compliance, subject to special provisions respecting dwelling units. Previously, municipalities were limited to the fines set out in the Provincial Offences Act; we are now able to set fines of up to $100,000. Municipalities also now have the power to impound objects as evidence. 5. Economic Development - Municipalities have greater authority to offer financial incentives within a community improvement plan. 6. Business Improvement Areas (BIAs) - Municipalities can now establish their own rules and conditions for BIAs. However, the current BIA rules and conditions in the Municipal Act, 2001 will continue if a municipality does not exercise its new right to do so. 7. Housing - Municipalities now have the authority to prohibit or regulate the demolition or conversion of residential rental properties with six or more dwelling units. REPORT NO.:CLD-012-07 PAGE 4 OF 7 3.0 Transparency and Accountability In response to public concerns over events in recent years, the Act now contains general requirements which replace specific provisions. Accountability mechanisms have been strengthened to balance broader powers. Municipalities are empowered to pass by-laws to establish: 1. Code of Conduct for Council and Local Boards - A code of conduct may speak to such matters as standards for appropriate interaction with municipal staff, residents and key stakeholders, and appropriate use of corporate resources. Many municipalities, including the Municipality of Clarington, have established a code of conduct, but the revisions to the Act make the ability to do so clear. 2. Integrity Commissioner - Municipalities have explicit authority to appoint an Integrity Commissioner to perform functions related to the application of the code of conduct and other procedures, rules and policies governing ethical behaviour for members of council and local boards. Penalties that may be imposed by the municipality where the Integrity Commissioner reports that a member of council or local board has contravened the code of conduct include reprimand and suspension of pay for up to 90 days. Note that this does not include suspension of service. 3. Ombudsman - Municipalities may appoint an Ombudsman whose function is to investigate, in an independent manner, administrative decisions, recommendations and actions undertaken or omitted. The Ombudsman is given broad investigative powers, including the ability to access any documentation. Once the investigation is complete, the Ombudsman will prepare a public report containing such recommendations as are deemed fit. There is no review by the courts of the proceedings and decisions of the Ombudsman, except on the grounds of jurisdiction. 4. Auditor General- Municipalities have explicit authority to appoint an Auditor General who is responsible for assisting council in holding itself and municipal administrators accountable for the quality of stewardship over public funds and for achievement of value for money in municipal operations. These responsibilities do not include the responsibilities of the municipal external Auditor. 5. Lobbyist Registry - Municipalities have the ability to establish and maintain a lobbyist registry and appoint a registrar to monitor lobbyist activity and conduct inquiries where there is activity by an unregistered lobbyist. The purpose of the registry is so members of council and the public would know for certain when an individual is lobbying a council. REPORT NO.:CLD-012-07 PAGE 5 OF 7 6. Meeting Investigator - Although not yet proclaimed, Bill 130 provides for a non- court process whereby the public can request an investigation to determine compliance with meeting rules. Municipalities will be able to appoint an investigator to investigate, upon complaint, whether rules in procedural by-laws and section 239 of the Municipal Act respecting meetings have been followed. If a municipality does not appoint an investigator, Ontario's Ombudsman will have the authority to investigate. 7. Appeal Body - When a municipality delegates a power to a municipal service board, existing municipal by-laws or resolutions are deemed to be by-laws of the board. The authority exists to establish an appeal body to hear appeals or review decisions made under the delegated power. This includes the power to determine procedures, powers and rules of those conducting the appeal. 3.1 Policies Although not yet proclaimed, the Act requires that municipalities adopt the following policies: . Sale and other disposition of land . Hiring of Employees . Procurement of goods and services . Notice - when, under what circumstances and how notice to the public is to be given . Accountability and transparency . Delegation of powers and duties contained within the Municipal Act or the Planning Act Municipalities are being advised by the Province to consider preparing the mandatory policies now in order to be ready for the proclamation. The Municipality currently has policies relating to the sale and other disposition of land, hiring of employees, procurement of goods and services and notice, however these will be reviewed to ensure they comply with the requirements of Bill 130. Policies related to accountability and transparency and the delegation of powers and duties will need to be prepared and a further report will be forwarded to Council addressing these matters. 3.2 Meetings Changes to the Act build on the meeting provisions that have been in place for the last ten years. Public notice is required for all meetings and such notice is to be included in the Procedural By-law. The Act now states that a record of all meetings (open and closed) is mandatory. The Municipality currently follows this practice. REPORT NO.:CLD-012-07 PAGE 6 OF 7 Prior to the passing of Bill 130, the Municipal Act stated that a council could hold a closed meeting for the following subject matters: . Security of property . Personal matter about an identifiable individual . Acquisition or disposal of land . Labour relations . Litigation or potential litigation . Advice that is subject to solicitor-client privilege In addition to the reasons listed above, Bill 130 now allows for a meeting to be closed to the public if it is being held for the purpose of education or training the council members and no member discusses or otherwise deals with any matter in a way that materially advances the business or decision-making of the council, local board or committee. We are currently in the process of reviewing our Procedural By-law to include the new requirements related to meetings and will be reporting to Council at a later date. 3.3 Expanded Roles 3.3.1 Role of Head of Council Previously, Section 224 of the Act defined the role of the head of council as: . To act as chief executive officer of the municipality; . To preside over council meetings; . To provide leadership to the council; . To represent the municipality at official functions; and . To carry out the duties of the head of council under this or any other Act. In addition to this, Bill 130 now adds: . Uphold and promote the purposes of the municipality; . Promote public involvement in the municipality's activities; . Act as the representative of the municipality both within and outside the municipality, and promote the municipality locally, nationally and internationally; and . Participate in and foster activities that enhance the economic, social and environmental well-being of the municipality and its residents. 3.3.2 Role of Council The role of the council was previously defined as: . To represent the public and to consider the well-being and interests of the municipality; . To develop and evaluate the policies and programs of the municipality; . To determine which services the municipality provides; REPORT NO.:CLD-012-07 PAGE 7 OF 7 . To ensure that administrative practices and procedures are in place to implement the decisions of council; . To maintain the financial integrity of the municipality; and . To carry out the duties of council under this or any other Act. Bill 130 enhances this role by adding the following responsibilities: . To ensure that administrative policies, practices and procedures and controllership policies, practices and procedures are in place to implement the decisions of council; and . To ensure the accountability and transparency of the operations of the municipality, including the activity of the senior management of the municipality. 4.0 Amendments to Other Legislation Bill 130 amends other legislation in addition to the Municipal Act. Some of these include: 1. Highway Traffic Act - Municipalities now have the authority to set speed limits (up to 100 km/h). Default speed limits of 50 km/h in urban areas and 80 km/h on highways in prescribed former townships remain. 2. Liquor Licence Act - Authority to pass by-laws extending the hours of sale of liquor by licence holders in all or part of a municipality. This authority is to be proclaimed at a later date. 3. Retail Business Holidays Act - Proposed amendments, which have not as yet been proclaimed, will permit the Region of Durham to pass a by-law that would state that the Retail Business Holidays Act does not apply to any retail business within the Region. This will extend the scope beyond the tourism criteria which is set out in the Retail Business Holidays Act. 5.0 Conclusion This report is provided as an overview of the amendments to the Municipal Act as affected by Bill 130. Staff will continue to inform council of developments with the new Act provisions through additional reports addressing, in more detail, specific areas identified in this report.