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HomeMy WebLinkAboutCOD-002-11CI811I-bCOIl REPORT CORPORATE SERVICES DEPARTMENT Meeting: General Purpose and Administratiopon Committee Date: January 10, 2011 Resolution#: V PA's I P'! I By-law#: a o i/- oo~r Report: COD-002-11 File#: NIA Subject: Council Comprehensive Compensation By-law for the Term of Council 2011 to 2014; Confirming 113 Tax Free Allowance, and Updating the General Provisions RECOMMENDATIONS: It is respectfully recommended that Council approves the following: THAT Report COD-002-11 be received; 2. THAT Council approve the update to the general provision of the Comprehensive Compensation By-law as set out in attachment #1, and to confirm the continued application of the one-third tax free allowance as provided for in the Municipal Act; and 3. THAT By-law 2007-097 be repealed. Submitted by: Ma ' Marano, H.B.Sc., AMCT, Director of Corporate Services/ Human Resources MM/gj ' `~ ~"L Reviewed by: Franklin Wu Chief Administrative Officer CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379 F (905)623-0830 REPORT NO.: COD-002-11 PAGE 2 BACKGROUND AND COMMENT 1.0 Comprehensive Compensation for Council 1.1 As a matter of continuing practice and ongoing business By-law 2007-097 was approved on April 20, 2007, to consolidate the general provisions of compensation applicable to the Members of Council, (copy of By-law 2007-097 included as attachment #2). 1.2 The Municipal Act, Section 283 (7) requires that Council review the by-law at least once during the four year period to continue with the historical provision the one-third tax free portion of remuneration paid to elected Council Members. The attached revised By-law provides for confirmation of this allowance and updates other provisions of the by-law for clarity and compliance with governing policies or practice. 1.3 The terms set out and updated in the attached by-law are the general parameters and provisions for compensation matters. The actual remuneration is provided for in a separate by-law which amended from time to time to reflect the actual values payable, (By-law 2008-020 attachment #3). 2.0 Annual Remuneration and Travel. Allowance 2.1 The 2011 remuneration and travel allowance payable to Council Members is set out in By-law #2008-020; approved January 2008. That By-law is in effect and not the subject of review. The update to the remuneration and travel allowance will follow the normal timeframe applicable to the Non-Affiliated Group, (which follows the term of the CUPE collective agreement) in accordance with the provisions set out in the above governing Comprehensive Compensation By-law. Attachment #1 - By-Law to Update Prevailing Comprehensive Compensation Attachment #2 - By-Law 2007-097 Comprehensive Compensation for Council Attachment #3 - By-Law 2008-020 Annual Remuneration and Travel Allowance THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW # 2011 - 000 ATTACI3MENT #] Being a by-law to update the prevailing compensation policies applicable to the Mayor and Members of Council, and to repeal by-law# 2007-097. WHEREAS Section 283-1 of the Municipal Act 2001 provides that a municipality may pass by laws for paying remuneration to the Members of Council; WHEREAS On March 19, 2007 the Council of the Municipality of Clarington ratified report ADM-002-b7 Mayors Compensation Review-2007, authorizing staff to bring forward a comprehensive by-law to consolidate the compensation practices for the Mayor and Members of Council, which was set out in By-Law 2007-097 and now . requires updating for compliance; NOW THEREFORE BE IT ENACTED AS FOLLOWS A. ANNUAL REMUNERATION Mayor and Council -Amount as set out in prevailingby-laws for particular year in accordance with the following: Provisions: 1. Future increase to annual remuneration will be the percent applicable to the Non-Affiliated Employees salary for the same period of time, applied on January 15' of the applicable year, or as otherwise stated: 2. There is no additional compensation applicable to any prevailing Deputy Mayor position. 2. Councillor remuneration is set at 40% of the Mayor's salary. 3. Remuneration continues at the end of the term of Council until the end of the month prior to the inaugural meeting of the incoming Council. 4. Regional remuneration - Clarington Council endorsed single stream - payment of the Regional portion of compensation through the local level byapproval of Report COD-65-04. The Region approved single stream payment by By-Law 01-2005 and 08- 2004, and is considered the Employer for Region compensation purposes. B. 113 TAX FREE DECLARATION B.1. In each term Council is required by the Municipal Act S283 (7) to confirm its intention to retain the 1/3 tax free allowance as provided for in the Municipal Act; Council hereby-confirms 113 tax free allowance applied to the local level remunemtion for the prevailing term from December 2010 to December 2014. B.2. The tax free portion of remuneration is currently exempt from reporting requirements under the Public Sector Salary Disclosure Act, and remuneration will continue to be reported as required under the prevailing Act. 6.3. Council maintains the commitment to adjust future compensation to maintain an equivalent net compensation value should the Municipal Act be amended or repealed and replaced with provisions that in effect prohibit an income tax free allowance. Compensation will be automatically adjusted to maintain the same net compensation level. C. TRAVEL ALLOWANCE & REIMBURSEMENT GUIDELINES C.1. Monthly Flat Rate Allowance Mayor, Deputy Mayor, Councillor - as set out in prevailing by-laws for particular year in accordance with the following: Provisions: 1. Monthly flat rate allowance will be paid to compensate for travel related to Municipal business within Municipal boundaries. 2. Allowance shall be paid through payroll with statutory deductions applied. 3. The allowance shall be paid on an automatic basis unless any Member of Council elects not to be reimbursed and provides written notice to Payroll of the effective date of cancellation. 4. Future increases will be the percent applicable td the general non- affiliated grid increase, applied to the total monthly allowance, in each year, unless Council amends otherwise. Increase will be applied at the date pf the change to the employee grid. 5. If any travel is reimbursed for travel outside of the Municipal boundaries over and above the monthly allowance, it will be at the prevailing employee kilometre rate, in accordance with the guidelines below. C.2. Travel & Expense Reimbursement Guidelines C.2.1 Municipal Business Municipal business will be considered to include the following: i. Travel to and from any meetings of Boards Commissions or Authorities or other groups to which Council members are appointed or delegated provided they are held outside the municipal boundaries and travel expenses are not paid by the aforementioned agencies; ii. Travel to and from any event sponsored by the Corporation towards the promotion of the Municipality where Council attendance is _ required or requested outside the Municipality; iii. Accommodation, meals, kilometre reimbursement for travel outside of municipal boundaries, parking, registration and other miscellaneous charges related to municipal business which may include among other things attendance at any seminar, conference; events or convention approved by Council and attended as a Council representative or as provided for through the current budget allocation; iv. Travelling to and from the Municipal Administrative Centre will NOT be considered to be Municipal business in the following instances: a) Attendance at all General Purpose and Administration Committee meetings and Council meetings. b) Meetings with Town Staff. c) Picking up of agendas. d) Constituent meetings. C.2.2 Expense Claims and Approvals v. All claims for payment shall be documented using the prevailing expense claim sheet and where possible supported with receipts. vi. Mavor: Expense claims for reimbursement of expenses by the Mayor shall be submitted as soon as possible after the month end and approved for payment by the Chief Administrative Officer or in the alternative, by the Director of Finance. vii. Members of Council: all expense claims for reimbursement of expenses for Members of Council shall be submitted as soon as passible after month end to the Mayor for approval. In the absence of the Mayor, the Chief Administrative Officer, or in the alternative, the Director of Finance shall approve the expense claims far payment. C.2.3 Annual Report to Council All expense claims and compensation, severance, etc., shall be categorized and included in the annual remuneration report to Council in accordance with the prevailing Municipal Act requirements. C.2.4 Special Events Expenses There are occasions throughout the year where the Corporation may host special events to promote the Municipality. The following guidelines apply to such events: i Payment of expenses as it relates to the hosting of government officials industrial prospects or other groups visiting the Municipality of Clarington or the hosting of receptions for same within the Municipality will require the submission of an expense claim indicating the number of people hosted and the date as well as the specific amount of expenditure. Such claims must be supported by the applicable receipts or documentation. ii All claims for payment or expenses related to special events shall be submitted as soon as possible after the month end to the Mayor for approval. In the absence of the Mayor the Chief Administrative Officer or, in the alternative, the Director of Finance shall approve the claims - for payment D. BENEFITS PROVIDED FOR CURRENT SITTING MEMBERS General Application 1. Family or Single Coverage 2. Any member may choose not to receive any benefit by advising Payroll in writing. 3. All benefits are limited to provisions set out by the prevailing Cartier. 4. All benefts cease at age 65 unless expressly ident~ed even if the member is currently on Council D.1 Health & Dental Generally, as applicable to Non-AffliatedEmployees for Health, Dental and Travel Benefits, excluding any self funded provisions. D.2 Life Insurance and Accidental Death & Dismemberment (ADDI Prevailing policy generally as applicable to Non-AfFliated Employees; Reduced at age 65 to 50%, and at age 70 to $25,000 or amount set out in prevailing carder plan. D.3 OMERS 1. Mandatory participation and individual contribution as set out by OMERS. 2. Per ADM-03-02, an "OMERS equivalent" Retirement Pension contribution of 7.5% of the portion of the current remuneration that is not eligible for OMERS contribution is established for all Members of Council effective January 1, 2002. 3. All OMERS deductions stop at age 69 in accordance with OMERS criteria. D.4 Sick Leave Benefits Short Term or Long.Term Disability (LTD) benefts are not provided to Members of Council D.5 Other Communication tools such as cell phones or blackberries are as provided for in the annual operating budget. Usage of such equipment is governed by prevailing corporate policies. E: TUITION ASSISTANCE & MEMBERSHIP FEES POLICY In accordance with Report ADMIN.16-2000, the following policy applies unless otherwise spec~cally approved by Council resolution: The Municipality will not pay far any educational courses to any Member of Council, including any membership fee of any professional association. The only exception is orientation seminars offered to new Members of Council by the Ministry of Municipal Affairs and Housing. F. CREDIT CARDS The Mayor is provided with a credd card for the purpose of Municipal business expenses, as noted in report ADMIN 9-94. Statements are submitted to the CAO for processing of payment, or in the alternative, to the Director of Finance for processing of payments. G. SEVERANCE Payment of severance remuneration to current and future members of Council is upon the following terms and conditions: G.1 Definitions: a) "annual remuneration" of the member means the annual amount of remuneration paid to the member for the discharge of all duties as a member of Council including both the tax exempt and taxable portions calculated as at the date of severance; b) °member' means any person who is or becomes a member of Council on or after the 19th day of January 2004; - c) "service" shall mean any period of continuous service as a member and shall include any member's period of service occurring prior to the 19'" day of January- 2004 d) Retroactivity -there is no severance applied to years of broken service. G.2.1 Eligibility: Upon application by the member or his or her personal representative a member is entitled to receive severance remuneration upon ceasing to be a member by reason of: a) election defeat; b) resignation; c) leaving office; or d) .dying while in offce if the member is 65 years of age or over and not eligible to receive benefts under the Municipality's group life insurance program. G.2.2 Ineligibiliri: No member shall. be entitled to receive severance remuneration who ceases to be a member by reason of or by resignation which is a result of or given in anticipation of: a) removal from offce by judicial process; or b) disqualification under or operation of any Act of the Parliament of Canada or the Legislature of the Province of Ontario G.3 Remuneration: Severance remuneration shall be equal to one-twelfth (1112) the annual remuneration of the member times the number of years service of the member pro-rated for part years of service to a maximum amount payable of eighteen (18) months remuneration. G.4 Payment: Payment of severance amount maybe split and paid over a maximum of 3 years; and is subject to all applicable statutory deductions. G.5 Claim: A written request for severance remuneration must be received by the Municipal Clerk within six (6) calendar months of a member ceasing to be a member otherwise any entitlement to severance remuneration shall be forteited. REPEAL BY-LAWS The following By-Law is hereby repealed;#2007-097. EFFECTIVE DATE: This By law shall come into force on the date of passage. By-law read a first and second time this XX day of January, 2011 By-law read a third time and finally. passed this XX day of January, 2011 Adrian Foster, Mayor Patti L. Bartle Municipal Clerk ATTACHMENT #2 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW # 2007 - 097 Being a by-law to set out the prevailing comprehensive compensation including benefits and policies applicable to the Mayor and Members of Council, and to repeal by-laws 2005-155, 2004-264, 2004-263, 2004-033, 2004-032, 2003-179, 2002-017, 2001-124 and 94-54 WHEREAS Section 283-1 of the Municipal Act 2001 provides that a municipally may pass bylaws for paying remuneration to the Members of Council; WHEREAS On March 19, 2007 the Council of the Municipality of Clarington ratified report ADM-002-07 Mayors Compensation Review-2007, authorizing staff to bring forward a comprehensive by-law to consolidate the compensation practices for the Mayor and Members of Council; NOW THEREFORE BE IT ENACTED AS FOLLOWS: A. ANNUAL REMUNERATION 2007 Mayor $ 71,460 Councilor $ 28,584 Provisions: 1. Future increase to annual remuneration will be the percent applicable to the Non-Affiliated Employees salary for the same period of time, applied ~on January 1'~ of the applicable year, or as othen;vise stated. 2. There is no additional compensation applicable to any prevailing Deputy Mayor position. 2. Ccuncillor remuneration is set at 40°~ of the Mayor's salary. 3. Remuneration continues at the end of the term of Council un51 the end of the month prior to the inaugural meeting of the incoming Council. 4. Regional remuneration - Cladngton Council endorsed single stream payment of the Regional portion of compensation through the local level by approval of Report CO0.65-04. The Region appmvetl single stream payment by By-Law Ot-2005 and 08- 2004, and is considered the Employer Tor Region compensation purposes. B. 113 TAX FREE DECLARATION B.1. Council is required by the Municipal Act, in each term, to confirm-its intention to retain the 113 tax free allowance as provided for in the Municipal Act; Council hereby confirms 113 tax free allowance applied to the bcal level remuneration for the prevailing term from December 2006 to December 2010. 8.2. The tax free portion of remuneration is currently exempt from reporting requirements under the Public Sector Salary Disclosure Ad, and remuneration will continue to be reported as required under the prevailing Act. 8.3. Council maintains the commitment to adjust future compensation to maintain an equivalent net compensation value should the Municpal Act be amended or repealed and replaced with provisions that in effect prohibit an income tax free allowance. Compensation will be automatically adjusted to maintain the same net cempensatlon level. - C. TRAVEL ALLOWANCE 8. REIMBURSEMENT GUIDELINES C.1. Monthly Flat Rate Allowance 2007 Mayor $ 850.00 Deputy Mayor $823.D0 Councillor $564.00 Provisions: 1. Monthly flat rate allowance will be paid to compensate for travel related to Municipal business within Municipal boundaries. 2. Allowance shall be paid through payroll with statutory deductions applied. - 3. The allowance shall be paid on an automatic basis unless any Member of Council elects not to be reimbursed and provides written notice to Payroll of the effective date of cancellation. 4. Future increases will be the percent applicable to the general non- affiliated grid increase, applied to the total monthly allowance, in each year that an increase is applied to the employee km rate, unless Council amends otherwise. Increase will be applied at the date of the change to the employee km rate. 5. If any travel is reimbursed for travel outside of the Municipal boundades over and above the monthly allowance, it will be at the prevailing employee kilometre rate, in accordance with the guidelines below. C.2. Travel 8 Expense Reimbursement Guidelines C.2.1 Municipal Business Municipal business will be considered to include the following: i. Travel to and from any meetings of Boards Commissions or Authorities or other groups to which Council members are appointed or delegated provided they are held outside the municipal boundaries and travel expenses are not paid by the aforementioned agencies; ii. Travel to and from any event sponsored by the Corporation towards the promotion of the Municipality where Council attendance is required or requested outside the Municipality; iii. Accommodation, meals, kilometre reimbursement for travel outside of municipal boundaries, parking, registration and other miscellaneous charges related to municipal business which may incude among other things attendance at any seminar, conference or convention approved by Council or as provided for through the current budget allocation; iv. Travelling to and from the Municipal Administrative Centre will NOT be considered to be Municipal business in the following instances a) Attendance at all General Purpose and Administration Committee meetings and Council meetings. b) Meetings with Town Staff. c) Picking up of agendas. d) Constituent meetings. C.2.2 Expense Claims and Approvals v. All claims for payment shall be documented using the prevailing expense claim sheet and where possible supported with receipts. vl. Mavor: Expense claims for reimbursement of expenses by the Mayor shall be submitted as soon as possible after the month end and approved for payment by the Chief Administrative Officer or in the alternative, by the Director of Finance. vii: Members of Council: all expense claims for reimbursement of expenses for Members of Council shall be submitted as soon as possible after month end to the Mayor for approval. In the absence of the Mayor, the Chief Administrative Officer, or in the al[emative, the Director of Finance shall approve the expense claims for payment C.2.3 Annual Report to Council All expense claims shall be categorized and included in the annual remuneration report to Council in accordance with the prevailing Municpal Ad requirements. 0.2.4 -Special Events Expenses There are occasions throughout the year where the Corporation may host special events to promote the Municipality. The following guidelines apply to such events: i Payment of expenses as it relates to [he hosting of government officials industrial prospects or other groups visiting [he Municipality of Clarington or the hosting of receptions for same within the Municipality will require the submission of an expense claim indicating the number of people hosted and fhe date as well as the specific amount of expenditure. Such claims must be supported by the applicable receipts or documentation. ii All claims for payment or expenses related to special events shall be submitted as span as possible after the month end to the Mayor for approval. In the absence of the Mayor the Chief Administrative Officer or, in the alternative, the Director of Finance shall approve the claims for payment D. BENEFITS PROVIDED D.1 Health & Dental As applicable to Non-Affiliated Employees for Health, Dental and Travel Benefits D.2 Life Insurance and Accidental Death & Dismemberment (ADD) Prevailing policy generally as applicable to Non-Affiliated Employees; Reduced at age 65 to 50°k, and at age 70 to $25,000 D.3 Survivor Benefit Health and Life Benefits continue For the eadiest of a maximum of 10 years after death or until spouse reaches age 65, remarries or ceases to qualify, or becomes eligible for coverage under any other Oroup Policy. D.4 OMERS 1. Mandatory Parlicipafion and Individual Contribution as set out by OMERS 2. Per ADM-03-02, an "OMERS equivalent" Retirement Pension contribution of 7.5% of the portion of the current remuneration that is not eligible for OMERS contribution is established for all Members of Council effective January 1, 2002. D.5 Sick Leave Benefits Short Term or Long Tenn Disability (LTD) benefits are no[ provided to Members of Council. D.6 Other Communication tools, cell phones, conferences, etc are as provided far in the annual operating budget. D.7 Termination of Benefits All Benefits terminate age 75 E. TUITION ASSISTANCE & MEMBERSHIP FEES POLICY In act~rdance with Report ADMIN.18-2000, the following policy applies unless otherwise specifcally approved by Councl resolution: The Municipality will not pay for any educational courses to any Member of Council, including any membership fee of any professional assoaation. The only exception is orientation seminars offered to new Members of Council by the Ministry of Municipal Affairs and Housing. F. CREDIT CARDS The Mayor is provided with a credit card for the purpose of Municipal business expenses, as noted in report ADMIN 9-94. Statements are submitted to the CAO for processing of payment, or in the alternative, to the Director of Finance for processing of payments. G. SEVERANCE Payment of severance remuneration to curteM and future members of Council is upon the following terms and conditions: G.1 Definitions: a) "a annual remuneration' of the member means the annual amount of remuneration paid to the member far the discharge of all duties as a member of Council inGuding both the tax exempt and taxable portions calculated as at the date of severance; b) "member' means any person who is or becomes a member of Ccuncil on or after the 19th day of January 2004; c) "service" shall mean any period of continuous service as a member and shall include any member's period of service occurring prior to the 19'" day of January 2004 d) Retroactivity -there is no severance applied to years of broken service. G.2.1 Elicibiliiv: Upon application by the member or his or her personal representative a member is entitled to receive severance remuneration upon ceasing to be a member by reason of: a) election defeat; b) resignation; c) .leaving office; or d) dying while in office if the member is 65 years of age or over and not eligible to receive henefits under the Municipality's group life insurance program. G.2.2 Ineli ibili No member shall be entitled to receive severance remuneration who ceases to be a member by reason of or by resignation which is a result of or given in anticipation of: a) removal from office by judiaal process; or b) disqualification under or operation of any Act of the Parliament of Canada or the Legislature of the Province of Ontario G.3 Foreco Elioibility Any member who wishes to Torego their eligibility for severance remuneration may do so by providing written notice to the Municipal Clerk within thirty (30) days of the passage of this amending by law or within thirty (30) days of taking office. G.4 Remuneration: Severance remuneration shall be equal to one-twelfth (1l12) the annual remuneration of the member times the number of years service of the member pro-rated for part years of service to a maximum amount payable of twelve (18) months remuneration; G.5 Claim: A written application for severance remuneration must be received by the Municipal Clerk within six 6 calendar months of a member ceasing to be a member otherwise any entitlement to severance remuneration shall be forteited. G.6 Mirror Recion Policv The policy for severance will continue to mirror the policy for the Region of Durham to automatically reflect increases or positive amendrr~nts. REPEAL BY-LAWS The following By-Laws are hereby repeals; #2005-155, 2004- 264,2004-263,2004-033,2004-032,2003-179; 2002-017, 20D1-124 and 94-54 .EFFECTIVE DATE: This By law shall carne into force on the date of passage. By-law read a first and second time this 30'" day of April, 2007 By-law read a third time and fnaliy passed this 30'" day of April, 2007 !" -.~---- / Jim. erne!hy, Mayor i . Bar ~ . MunicipahCleTk ACHMENT #3 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 2008-020 Being a By-law respecting the annual remuneration and travel allowances paid to the Mayor and Members of Council for the term 2008 - 2011. WHEREAS By-law 2007-97 provides that rates of remuneration for the Mayor and Members of Council change according to rates applicable to non-affiliated employees. NOW THEREFORE BE IT ENACTED THAT THE FOLLOWING RATES APPLY: COUNCIL E8N[rNSRATION CONPBNSATIODT TRAVEL ALLOWANCB Year Mayor Council & Mayor Deputy Councillor MdyOT 2007 Current $71,460 $28,584 $850 $823 $564 2008 2009 $73,'182 $]5 996 $29,513 $30 398 3.25$ 3 $878 $850 $582 2010 , $78,2]6 , $31,310 .00& 3.00& $904 $931 $875 $600 2011 $80,820 $32,328 3.258 $961 $902 $618 $931 $638 By-law read a first and second time this 28"day of January, 2008. By-law read a third time and finally passed this 28'h day of January, 2008. Mayor . 5 ~-~ ~' _