Transcript CRB - Town of Peace River

A Report on the Inspection of
The Town of Peace River
December 1, 2014
1
Section One outlines the background to this
Inspection
Section Two outlines what we would expect to find
Section Three outlines our observations/findings
Section Four outlines the key issues at the heart of
Inspection
Section Five outlines our conclusions and
recommendations
Appendix
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Introduction to the Inspection (1)
• Alberta Municipal Affairs received an invalid petition in May
2013 from some residents of the Town of Peace River
• After the October 2013 municipal election, Council met with
the Minister and expressed interest in following up this matter
• A subsequent motion of Council directed this request to the
Minister as per Section 571; letter sent to the Minister was
dated November 28th 2013
• The decision to conduct an independent examination
(“Inspection”) of the Town of Peace River was made by the
Minister of Municipal Affairs on January 16th 2014
• George B. Cuff & Associates Ltd. was appointed as the
inspector by Minister Hughes on March 27th 2014
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Introduction to the Inspection (2)
“ The objective of the inspection process is to support the role of
council and administration in providing local government services in
the community.
The results of an inspection may confirm and
reinforce the positive practices and policies of the municipality,
and may identify areas and make recommendations where
improvements are required… The broad scope of issues addressed in
the inspection should result in recommendations that will be of
benefit to council, administration, and the community.”
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Introduction to the Inspection (3)
The purpose of an Inspection is cited in the MGA under Section
571 as follows:
(1)The Minister may require any matter connected with the management,
administration or operation of any municipality …
(a) On the Minister’s initiative, or
(b) On the request of the council of the municipality.
(2) The Minister may appoint one or more persons as inspectors for the
purpose of carrying out inspections under this section.
(3) (b)The inspector has the same powers, privileges and immunities as a
commissioner under the Public Inquiries Act.
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Introduction to the Inspection (4)
In the letter of the Minister to the Mayor of Peace River the
Minister states:
Section 574 of the MGA provides that the Minister may, by order,
direct the council, the Chief Administrative Officer or a designated
officer of the municipality to take any action that the Minister
considers proper in the circumstances if the Minister considers
(based on the inspection report) that the municipality is managed
in an irregular, improper, or improvident manner. Directives
normally have timelines by which the action is required to be
completed.
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Introduction to the Inspection (5)
Our contract required us to report on matters which we believed fell
within the guidelines of “irregular, improper or improvident conduct by
Council, individual Councillors or by municipal staff”.
Irregular: Not regular; not according to established law, method, or usage;
not conformable to nature, to rules or moral rectitude, or to established
principles; not normal, disorderly.
Improper: Not suitable; unfit; not suited to the character, time and place.
Improvident: As used in a statute excluding one found incompetent to execute the
duties of administrator by reason of improvidence, means that want of care and
foresight in the management of property which would be likely to render the estate
and effects of the intestate unsafe, and liable to be lost or diminished in value, in
case the administration should be committed to the improvident person.
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Our Methodology(1)
• Requested documentation from Alberta Municipal Affairs which
we felt would be useful to our study
• Conducted interviews with all members of Council
• Conducted interviews with all management staff of the Town
• Interviewed the Reeve/Mayor and CAO of the following
neighbouring jurisdictions:
• Northern Lights
• Northern Sunrise County
• M.D. of Peace
• Town of Grimshaw
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Our Methodology(2)
•
Interviewed former chief administrative officers of the Town who we
felt might be able to shed additional light on this topic and its history
•
Interviewed the Member of the Legislative Assembly for the Town of
Peace River
•
Interviewed two former Mayors of the Town
•
Interviewed the Manager of the Mackenzie Municipal Services Agency
•
Reviewed documentation from the Town and other organizations with
an involvement with the Town including background reports, audit
reports, related studies, minutes and documents considered to be
directly related to this Inspection
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Our Methodology(3)
•
Conducted a comparative analysis of other similar municipalities with
regard to a number of indices relating to current “fiscal health” of the
municipality
•
Sought additional clarification from the Town and other parties on
issues which are central to the Report
•
Interviewed certain members of the public who had an involvement
with the Town during the run-up to the unsuccessful public petition
•
Interviewed most of the members of the previous Council (2010-2013)
•
Interviewed Fire Chiefs from surrounding municipalities and some
members of the Fire Department
•
Reviewed all those matters which we believed to be germane to this
Inspection and request.
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Who Does What?
Section 201(1) states that a council is responsible for:
a) developing and evaluating the policies and programs of the
municipality;
b) making sure that the powers, duties and functions of the municipality
are appropriately carried out;
c) carrying out the powers, duties and functions expressly given to it
under this or any other enactment.
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Who Does What (2)
This section of the MGA is complemented by Section 207 which specifies
what the chief administrative officer is responsible for, and which states
that the CAO:
a) is the administrative head of the municipality;
b) ensures that the policies and programs of the municipality are
implemented;
c) advises and informs the council on the operation and affairs of the
municipality;
d) performs the duties and functions and exercises the powers assigned to
a chief administrative officer.
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Role Clarity
Any municipal Council in this Province has essentially two primary
functions. It must ensure that:
•
the municipality provides those services and functions deemed useful
or necessary to the population of the community in an efficient and
effective manner while maintaining a healthy tax base and providing
for a sustainable future; and
•
the municipality acts on those issues which are within its jurisdiction
and which require the judgment of the elected Council.
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Principles of Decision-Making
•
act in good faith so that the best interests of the whole community are
respected
•
think independently and refrain from forming allegiances with factions
within Council
•
work with each other on Council so that the will of the public in
electing each other is respected
•
support the citizens’ choice of Mayor and show respect for the position
and a willingness to make the system work well
•
as Mayor, respect the other choices that citizens made in electing the
Council members and show evidence of a genuine desire to enable the
new Council to function effectively
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Principles of Decision-Making (2)
•
take all points of view into account when making decisions; withhold
judgment on requested decisions until all of the information has been
considered including the ideas and opinions of each member of Council
•
work in collaboration with the chief administrative officer and his
administration; act respectfully at all times
•
refrain from showing added consideration to the views of any individuals in
the community regardless of how important they may be perceived to be
(either in their own mind or that of others); and
•
provide collective leadership as a governing body to the chief
administrative officer (i.e. not individually); and use the office of the
Mayor to maintain liaison with the CAO between meetings of Council.
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The Mayor as Leader of Council
According to the Act, the Mayor has the same responsibilities of all
members of Council as well as performing additional roles associated with
leading his/her Council. Thus, in addition to those roles described in the
Act for all members of Council, the Mayor (according to Section 154 (1)) as
“A chief elected official, in addition to performing the duties of a
councillor, must
a) preside when in attendance at a council meeting unless a bylaw
provides that another councillor or other person is to preside, and
b) perform any other duty imposed on a chief elected official by this or
any other enactment or bylaw.”
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Council as a Whole
The Municipal Government Act (s.153) states that Councillors have the
following duties:
a) “to consider the welfare and interests of the municipality as a whole
and to bring to Council’s attention anything that would promote the
welfare or interests of the municipality;
b) to participate generally in developing and evaluating the policies and
programs of the municipality;
c) to participate in council meetings and council committee meetings and
meetings of other bodies to which they are appointed by council;
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Council as a Whole (2)
d) to obtain information about the operation or administration of the
municipality from the chief administrative officer or a person
designated by the chief administrative officer
e) to keep in confidence matters discussed in private at a council or
council committee meeting until discussed at a meeting held in public;
f) to perform any other duty or function imposed on councillors by this or
any other enactment or by the council.”
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Governance Functions
Primary governance functions include its role in setting the strategic
agenda (goals, priorities, and strategies); establishing policy or revising
existing policies; making decisions by way of bylaws and resolutions; and
providing leadership to the administration through its decisions.
If Council is guiding the decisions from a governance perspective, it will
recognize that its powers stem from:
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•
Legislative Responsibilities and Powers
•
Representation of the Public
Role of Senior Management
The work of senior management impacts:
•
Council’s understanding of the background to the issues
•
the confidence of the Council in handling any complaints from the
public
•
the confidence of the non-management staff in the decisions being
made by Council
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•
the morale of the organization
•
the ethical compass of the organization
Role of Senior Management (2)
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•
the fairness of decisions
•
the ongoing development of professional skills
•
the pursuit of funding for special projects
•
the professional management of fiscal, physical and human resources.
Senior Management Practices
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•
Providing Policy Advice
•
Advising on the Strategic Framework
•
Overseeing Employees
•
Ensuring Adequate Staffing
•
Assessing and Training
•
Orientating Staff
•
Ensuring Communication
•
Being Responsive to the Public
•
Integrating Departments and Functions
•
Monitoring Employee Morale
Roles of the Chief Administrative Officer
Principally sections 207 and 208 of the MGA guide the role of the CAO.
Sections 207/208 describes the role as follows:
“s. 207 The chief administrative officer
a) is the administrative head of the municipality;
b) ensures that the policies and programs of the municipality are
implemented;
c) advises and informs the council on the operation and affairs of the
municipality;
d) performs the duties and functions and exercises the powers assigned to
a chief administrative officer.
Sec. 208 outlines additional duties
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Key Issues
• Key Principles
• The CAO Contract
• The Ski Hill
• Related Policy Issues
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Key Principles(1)
Based on what we understand relative to good
government at the local level, there are certain
principles which Councils would be expected to reflect
if they were acting in an appropriate manner and
consistent with the foregoing sections of legislation.
These principles (as we understand them) follow:
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Key Principles (2)
• Good Government
• Policy Leadership
• Adherence to decision-making protocols
• Primacy of Council Table
• Open meetings
• Regular and transparent reporting
• Apolitical administration
• Interests of the whole
• Oversight
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Key Principles (3)
• Participation
• Respect for the Administration
• The Mayor as Spokesman for Council
• Ethical Government
• Good neighbours
• Self Regulating
• Accountability
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The CAO Contract(1)
The questions that we were asked to assess are in essence the following:
1.
Was the process utilized by the 2010-13 Council in recruiting/hiring the
CAO appropriate?
2.
Was the length of the Services Agreement signed between the Town and
the CAO appropriate? Does it reflect the best interests of the Town?
3.
Was the Services Agreement amount per annum appropriate for a Town of
the size and location of Peace River?
4.
Do the Services Agreement contract provisions particularly that of the
severance arrangements reflect the best interests of the Town?
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The CAO Contract(2)
We reviewed:
• The CAO timeline (i.e. appointments and dismissals
of prior CAOs and appointment of current CAO)
• We reviewed this and commented regarding the
fairness of the process to Council as a whole
• We reviewed the contract length and amount of
compensation
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The Ski Hill (1)
Key concerns include the following:
• Transparency to all members of Council
• Was the project part of a planned budget
• Representative of the best interests of Town
• Allocation of funding
• Primacy of the table
• Assess to legal advice
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The Ski Hill (2)
Key concerns include the following:
• Regional cooperation
• Access to Senior Management Advice
• Proper agreements
• Reporting by the Club
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Related Policy Issues(1)
• Politicization of the Administration
• Pseudo-Party System
• CAO as a Developer
• Personnel Policy
• CAO Compensation
• Strategic Plan
• Recommendations in Agendas
• Council’s Relationship with Its Administration
• Capacity to Move Forward
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Conclusions (1)
• Where to From Here
• Some Specific Protocols
– Governance
– Access to Information
– Council as a Whole
– Need for Solid, Comprehensive Advice
– Agreements Signed
– Priorities Addressed
– Effective HR Management
– Regional Relationships
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Conclusions (2)
The changes we have recommended include:
•
An improved and proactive orientation process following each municipal
election
•
Improved understanding of Council’s approach to governance (i.e. Council
needs to be willing to participate in relevant training in governance matters
throughout each Council term)
•
Clear understanding of the CAO’s role in functioning as Council’s senior
policy advisor; a willingness to follow the protocol of ensuring all
administrative advice flows through the CAO; the expectation that the CAO
will advise on all issues and that he will promptly carry out Council’s
direction as expressed through policies, bylaws and resolutions
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Conclusions (3)
•
A proactive approach to strategic planning that ensures that the
Council is involved in leading the process on an annual basis with
special attention paid to holding a strategic planning session within 90
days of any municipal election; assurance that the senior
administration is viewed as active partners in this process
•
A renewed commitment and approach to policy development; this
should be initiated at once with the adoption of this Report and the
approval of the policies outlined herein
•
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A reviewed and potentially revised Procedural Bylaw
Conclusions (4)
•
A Governance & Priorities Committee (in other words, a revamped
committee of the whole)
•
An Agenda Committee formed by the Mayor and two members of
Council (whose role it is to guide the development of policy-oriented
agendas which ensure that Council’s issues and concerns are being
addressed)
•
An overall decision-making model & framework to help Council and
management understand its role.
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Recommendations (1)
6.1
Handling of Report
1. We recommend that this Report be accepted in principle by the
Minister.
2. We recommend that the Report be forwarded to the Council of the
Town of Peace River for comment and response prior to any public
distribution.
3. We recommend that the Report be made publicly available as soon
as possible, preferably within 48 hours of the comments of the
Town being received by the Government.
4. We recommend that the Town post this Report on its website.
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Recommendations (2)
6.2
Policies
5. We recommend that the policies as identified in this Report (see
Section 3.3.6) be reviewed and if deemed acceptable, approved by
this Council.
6. We recommend that the specific protocols (see Section 3.3.7) be
reviewed and if deemed acceptable, approved by this Council. (see
below for a full listing)
7. We recommend that Council seek the advice of its legal counsel as
to a Code of Conduct for members of Council and a separate Code
of Conduct for its administration and that these codes once
approved be monitored for compliance.
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Recommendations (3)
6.2
Policies
8.
We recommend that the CAO refer the matter of Vehicle Use
Policy to its legal counsel for a report on what would constitute an
acceptable policy.
9.
We recommend that the current Personnel Policy be reviewed and
revised as
discussed in this Report. This policy should be referred to
the Town’s legal counsel for an expert opinion on its legality and
appropriateness.
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Recommendations (4)
6.3
Strategic Leadership
10. We recommend that Council continue to provide strategic leadership
through a robust, comprehensive Plan which captures what Council sees as
the needed priorities facing the Town.
11. We recommend that Council work jointly with the senior management in
discussing strategic priorities and administrative capacity to deliver any
necessary follow-up.
12. We recommend that the CAO oversee the preparation of an Administrative
Business Plan which melds departmental priorities with Council’s strategic
direction; and that department heads be responsible for ensuring that a
Department Business Plan (together with clear measurements) be
developed annually.
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Recommendations (5)
6.4
Regional Relationships
13. We recommend that the Town (Council and CAO) commit to continually
improve its relationships to its regional neighbours; to enter into and fulfill
agreements which are to the mutual benefit of all parties and therefore all
citizens of the region.
14. We recommend that the CAO report to Council on the relationships at
present with its regional partners vis-à-vis fire services and the steps being
taken to improve these important relationships.
15. We recommend that the Town of Peace River host a leadership forum in
2015 on regional cooperation and seek the experience of others in
developing first rate cooperative agreements and informal relationships.
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Recommendations (6)
6.5
Governance Model & Practices
16. We recommend that Council review the proposed Governance Model (Governance &
Priorities Committee) and adopt the model.
17. We recommend that Council institute a GPC sub-committee (Audit and Finance) which
would meet as a part of the GPC meeting and which would provide specific focus to
the audit relationship/roles and to the budget/business planning process.
18. We recommend that Council (with the input of the CAO) review the complete
inventory of agencies, boards and committees/commissions and their terms of
reference; and determine which are required; which have been and continue to be
useful to the Council’s governance; and those which are either not functioning or may
be considered redundant. The latter category should be provided to Council as an
RFD.
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Recommendations (7)
6.5
Governance Model & Practices
19. We recommend that the committee principles (see Section
3.13.4) be adopted in principle.
20. We recommend that Council meet at least annually with its
independent auditor and review their findings and management
letter recommendations.
21. We recommend that Council request by policy that an orientation
session be prepared for all new members of Council preferably
within two weeks of an election; that the Town take a leadership
role and invite other municipalities to a regional orientation
seminar.
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Recommendations (8)
6.6
Administrative Practices & Resources
22.We recommend that Council approve the Organization Structure as
a matter of policy which would include the top three levels of the
organization (i.e. Council and any committees established by
Council; the CAO; and any direct reports to the CAO).
23.We recommend that the Town commission an
“Infrastructure/Capital Assets” Master Plan which will provide
Council with a comprehensive understanding of the Town’s
significant infrastructure requirements (including transportation,
recreational and cultural facility needs).
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Recommendations (9)
6.6
Administrative Practices & Resources
24. We recommend that Council request from the CAO a manpower
plan which outlines positions approved; positions currently
unfilled; positions needed; and planned position changes (if any).
In particular, the Town needs to look carefully at the manpower
needs in communications, economic development, finance and
engineering.
25. We recommend that the Town update its position requirements in
terms of necessary skills/training and ensure that any future
management be held to that standard.
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Recommendations (10)
6.6
Administrative Practices & Resources (cont.)
26.We recommend that the HR Coordinator develop a training plan
which incorporates inter-municipal sharing through “field visits” of
TPR staff to other municipalities understood to have “best
practice” in certain functional areas.
27.We recommend that Council endorse management undertaking a
bi-annual survey of employee morale and that the CAO be charged
with providing oversight to this initiative.
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Recommendations (10)
6.6
Administrative Practices & Resources (cont.)
28. We recommend that HR conduct exit interviews as a regular
practice and that all department heads provide HR with advance
notice of any employee departures.
29. We recommend that team meetings continue to be held by senior
management on a weekly basis; by individual departments on at least
a bi-weekly basis.
30. We recommend that the CAO consider employing the use and
advice of a team management coach to assist the Senior Management
Team in developing a greater sense of cohesion and complementary
vision.
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Recommendations (8)
6.7
Communications Plan, Policies and Resources
31. We recommend that Council direct the CAO to provide Council with his
recommendations regarding updating the Town’s communication plan and
policies.
32. We recommend that Council direct the CAO to provide Council with a
revised position description for a Communications Advisor (staff position or
contractor) and how this position might also fulfill the needs expressed by
Council in terms of its perceived communications requirements.
33. We recommend that Council request the CAO to bring forward a Public
Consultation Policy for discussion at a GPC meeting within the next 60
days. This policy should also include the Town’s social media policy.
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Recommendations (9)
6.8
Remuneration
34. We recommend that Council Remuneration, Travel and Expense Policy
#P-11 2009-05 be amended as noted in our report Section 3.5.6
6.9
Key Issues
35. We recommend that Council conduct an independently facilitated
performance review of the CAO within 60 days of this Report being
presented to Council.
36. We recommend that the Council request the development of an RFD on
the Ski Club-Town relationship, fiscal commitments and future
relationship; and that this Report once reviewed by Council, be made
public.
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Recommendations (10)
6.9
Key Issues
37. We recommend that the following protocols be accepted:
• Treatment of CAO
• Treatment of senior administration
• Access to staff information
• Use of public property
• Role of citizens to request information
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Recommendations (10)
6.9
Key Issues
37. We recommend that the following protocols be accepted:
• Right of citizens to appear before Council
• Treatment of ABC’s
• Respect for each other in Chambers
• Obligation to inform
• Request for Information (citizen contact)
• Media Contact
• Agreements
• Resource Management
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Thank you! Any questions?
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