Report for City Council September 2, 2009 meeting.



Bylaw 14935

City Administration Bylaw Amendment No. 7

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Purpose

The purpose of this Bylaw is to amend Bylaw 12005, the City Administration Bylaw.

Readings

Bylaw 14935 is ready for three readings.

This Bylaw is authorized under the Municipal Government Act. A majority vote of City Council on all three readings is required for passage.

If Council wishes to give three readings during a single meeting, then prior to moving third reading, Council must unanimously agree “That Bylaw 14935 be considered for third reading.”

Advertising and Signing

There is no legal requirement that this Bylaw be advertised.

Position of Administration

Administration supports this Bylaw.

Report Summary

Bylaw 14935 amends the City Administration Bylaw in order to improve the effectiveness and efficiency of the City’s governance process.

Previous Council/Committee Action

• At the August 26, 2009, Executive Committee meeting, Bylaw 14935 was forwarded to City Council for the appropriate readings.

• At the August 26, 2009, Executive Committee meeting, the following motion was passed:

That the following changes be made to Bylaw 14935:

o In Section 3(1)(ii), “an annual” be replaced with “ “a semi-annual.”

o In Section 12, “October 26, 2010” be replaced with “October 1, 2009.”

• At the May 11, 2009, Agenda Review Committee meeting, the April 22, 2009, Corporate Services Department report 2009COC024 was postponed to the June 3, 2009, Executive Committee meeting.

• At the April 29, 2009, City Council meeting, the April 22, 2009, Corporate Services Department report 2009COC024 was referred to the May 20, 2009, Executive Committee meeting.

Report

• The City Administration Bylaw 12005 was approved by Council on June 25, 1999, and is due for an extensive review.

• In February 2007, the City Auditor released a report on the City of Edmonton Governance.

• The City Auditor’s report identified that the principal duties of Council are to participate in developing and evaluating the municipality’s policies and programs. It also stated that another of Council’s roles is to establish priorities of the municipality. The Auditor concluded that Council should concentrate on higher level governance.

• The Auditor further recommended that spending authority limits should be reviewed on a regular basis to ensure they are in line with market conditions.

• In the January 2008 report on the Corporate Properties Operational Audit, the City Auditor noted that increases in real estate values and lease costs have eroded the City Manager’s authority and posed risks of higher costs and lost opportunities relating to the acquisition and leasing process.

• In the past few years capital expenditures have increased three fold. The increased expenditures and revenues have increased the number of rather standard tenders and contracts that are approved by Council Committees.

• The existing delegated authority in the City Administration Bylaw may reduce the overall effectiveness and efficiency of the Administration.

• The June 1, 2009, effective date of Bylaw 14935 – City Administration Bylaw Amendment No. 7, has been revised to become effective October 26, 2010.

• Attachment 4 has been added to provide a side-by-side comparison of proposed changes.

Proposed Amendments:

The proposed amendments are summarized as follows:

Governance:

• Delegation of Authority Semi Annual report requirement has been revised to provide for an annual report which summarizes the expenditures and revenues and the number of tender-calls, sole source contracts, agreements, settlements, judgments, leases, land acquisitions and land dispositions over $100,000 approved by the Administration (s. 3).

• Attachment 1 is a copy of the new proposed annual report.

Administrative:

• The definition of “Department Head” is deleted (s. 2 (1)). This definition was not used in the bylaw.

• Definitions for “Sole-source Agreement” and “Tender-call” are added (s. 2(2)). These terms are now widely used and need to be defined.

• The authority for non-profit leases is revised to refer to the fair market value of $500,000 instead of the revenue of $500,000 (s.9).

Growth:

• Authority to issue and award tender-calls is increased from $1 million to $20 million (s. 7). Council has already approved the budget for these projects and it should be under the Administration’s authority to establish the contracts resulting from these tenders following the City’s normal tendering practices.

• Authority for emergency spending, burial plot agreements, Crossing Agreements and legal retainers is increased from $250,000 to $500,000 (s. 4). This is a reflection of the cost increases in the past 10 years.

• Authority for sole source agreements is revised from $250,000 or $250,000 per year to $500,000 for the term of the agreement (s. 6). This change limits the total spending on a sole source agreement to $500,000. The existing provisions allow for sole source agreements in the amount of $250,000 for 10 years for a total of $2,500,000 to be approved by the City Manager.

• Authority for acquisition and disposition of fee simple interests in land is increased from $1 million to $3 million (s. 8). This is a reflection of the cost increases in the past 10 years.

• Authority for Leases and other interests in land is increased from $250,000 per year to $750,000 per year (s. 8). This is a reflection of the cost increases in the past 10 years.

Operational:

• Settlement authority is revised to distinguish between uninsured and insured claims (s. 5). Insured claims are payable to and from the City’s General Government Risk Management Fund and uninsured claims are payable to and from operating budgets. The City’s deductible for insured claims varies and is currently $1 million for liability claims and $100,000 for property claims.

1. Settlement of uninsured claims is increased from $250,000 to $500,000

2. Settlement of insured claims will be within the City Manager’s authority

• New authority is created to authorize the City Manager to enter into agreements required for performance bonds (s. 10). City construction activities may require the City to obtain performance bonds.

• New authority created to authorize the City Manager to enter into provincial and federal grant funding agreements (s. 10). Council will continue to approve all budget adjustments that are over $1 million.

• New authority created to authorize the City Manager to enter into licenses of occupation for the transportation utility corridor (s. 10). This confirms that the City Manager will not require further approval from Committee of Council to enter into licenses of occupation for the transportation utility corridor for terms longer than 10 years.

• New authority created to authorize the City Manager to grant applications for leave for employees seeking nominations in municipal elections (s. 11). Currently, employees wishing to seek nomination for municipal elections must have Council’s approval. Given the nature of the request, it is recommended that this be an administrative function.

Focus Area

Governance: Build Organizational Capacity

Attachments

1. Proposed Annual Report

2. Bylaw 14935 – City Administration Bylaw Amendment No. 7

3. Summary of Contracting Authorities and Proposed Amendments to Bylaw 12005, the City Administration Bylaw

4. Side-by-Side Comparison of Proposed Changes

Others Reviewing this Report

• Senior Management Team

Summary of Contracting Authorities and Proposed Amendments to Bylaw 12005, the City Administration Bylaw

General Changes

• Definition of “Department Head” is deleted as it is not used in the Bylaw [2. a) (vii)]

• Definition of tender-call [2. xi.1)] and sole source agreement [2.a xiii] are added.

• A new authority is added to allow the City Manager to approve an employee leave of absence to run for office under Local Authorities Election Act. [15. m)]

• Delegation of Authority Semi Annual Report requirement is revised. [10. l)]

Financial Powers and Functions

• In cases of emergency, expend monies for the emergency up to $250,000 [11 c)]

• Limit of expenditure is increased to $500,000

• Settle claims against the City for up to $250,000 [11 g)(i)]

• Claim settlement authority for uninsured claims is increased to $500,000 [11 g)(i)]

• Settle claims by the City where difference between the value claimed and settlement is less than $250,000 [11 g)(ii)]

• Claim settlement authority for uninsured claims is increased to $500,000 [11 g)(ii)]

• Settle claims involving the payment of insurance deductibles (up to $1 million) where the insurer has settled the claim and is paying amounts in excess of the deductible [11 g)(iii)]

• Claim settlement authority for insured claims (payable to and from the City’s General Government Risk Management Fund) is not limited [11 g)(iii) and (iv)]

Agreements (not related to land)

o New authority is added to allow the City Manager to enter into federal and provincial grant funding agreements [12 q)]

o New authority is added to allow the City Manager to obtain performance bonds for the City [12 r)]

o New authority is added to allow the City Manager to enter into license agreements relating to the transportation utility corridor for unlimited terms [12 s)]

• Fixed revenue or expenditure agreement provided that the fixed revenue or expenditure does not exceed $250,000 per year and the term does not exceed 10 years [12 a)(i)]

o The limit is changed to $500,000 for the Term and this authority has been restricted to sole-source agreements

• Non-fixed revenue agreement provided that the term does not exceed 10 years [12 a)(ii)]

o This authority is restricted to sole-source agreements

• Tendered agreements where expenditure or revenue of agreement does not exceed $1 million and is in an approved budget [12(s)]

o The limit has been increased to $20 million.

• Agreement for services provided expenditure does not exceed $250,000 [s. 12 a)(iii)]

o This authority has been restricted to sole-source agreements and increased to $500,000

• Legal counsel retainers provided expenditure does not exceed $250,000 [s. 12 k)(ii)]

o The limit is increased to $500,000

• Agreements for police service at same level of authority upon confirmation from Chief of Police or Police Commission that expenditure can be accommodated in an approved police budget [12 d)]

• License of occupation agreements with the province for sewer out-falls for terms less than 25 years and revenue or expenditures less than $250 per year [12 c)]

Land Agreements

• Sale of land at fair market value or purchase of land at or below fair market value provided the revenue or expense is less than $1 million [12 e)(i)]

o The limit is increased to $3 million

• City leases its land at fair market value for no more than 10 years and $250,000 per year [12 e)(ii)]

o The limit is increased to $750,000 per year

• City acquires land by lease at or below fair market value for no more than 10 years and $250,000 per year [12 e)(iii)]

o The limit is increased to $750,000 per year

• City leases its land to non-profit organization at below fair market value for no more than 10 years and total of $250,000 [12 f)]

o Revised to restrict the lease to those with fair market value of no more than $500,000 for the term.

• Disposition or interest in land (not otherwise noted) provided that consideration does not exceed $250,000 per year [s. 12 e)(iv)]

o The limit is increased to $750,000 per year

• Crossing agreements for utilities provided that the consideration is no more than $250,000 per year [s. 12 o) p)]

o The limit is increased to $500,000 per year

• Sale of Burial Plots provided revenue is less than $250,000 per year [12 m)]

o The limit is increased to $500,000 per year

Side-by-Side Comparison of Proposed Changes

|Section |Current Wording |Proposed Wording |

| |Bylaw 12005, As Amended |Bylaw 14935 |

|DEFINITIONS |(vii) Department Head | |

|Words/Phrases |the general manager of any City department, | |

|DEFINITIONS | |(xi.1) Sole-source agreement |

|Words/Phrases | |an agreement or contract entered into without a tender-call, |

| | |(xiii) Tender-call |

| | |an open and competitive process whereby the City solicits |

| | |bids and proposals from interested parties and the successful|

| | |party is chosen based upon evaluation criteria set out in the|

| | |solicitation documents. |

|Reporting to Council |10l) prepare and submit to Council or its Standing |10l) prepare and submit to Council or its Standing |

| |Committees: |Committees: |

| | |such reports and recommendations as may be required by |

| |such reports and recommendations as may be required by |Council or its Standing Committees; and |

| |Council or its Standing Committees, and | |

| | |an annual report summarizing the number of tender-calls, sole|

| |a report listing all agreements, contracts and legal |source contracts, agreements, settlements, judgments, leases,|

| |settlements, approved by the City Manager or any person to |land acquisitions and land dispositions which involve a |

| |whom the City Manager has delegated approval authority, |revenue or expenditure of $100,000 or greater which have been|

| |including judgements against the City, since the previous |approved by the City Manager or any person to whom the City |

| |reporting, involving an expenditure, revenue or payment |Manager has delegated approval authority. |

| |greater than $100,000 and leases to non-profit organizations | |

| |for a rental rate that is below market value; such report to | |

| |be submitted every 6 months, or as otherwise directed by | |

| |Council or its standing Committees. | |

|Emergency Spending |11c) in cases of an emergency, as determined by the City |11 c) in cases of an emergency, as determined by the City |

| |Manager, expend monies for the emergency that are not in an |Manager, expend monies for the emergency that are not in an |

| |approved budget, up to a maximum of $250,000 for each |approved budget, up to a maximum of $500,000 for each |

| |expenditure, and subsequently report to Council on the |expenditure, and subsequently report to Council on the |

| |implications of those expenditures; |implications of those expenditures; |

|Settlement of Claims |11g) approve the: |11g) approve the: |

| | | |

| |settlement of all actions, claims, or demands against the |settlement of all uninsured actions, claims, or demands |

| |City where the amount paid by the City does not exceed |against the City where the amount paid by the City does not |

| |$250,000, including prejudgement interest and court costs, |exceed $500,000, including prejudgement interest and court |

| | |costs, |

| |settlement of all actions, claims, or demands by the City, | |

| |where the difference between the amount recovered and the |settlement of all uninsured actions, claims, or demands by |

| |amount claimed by the City does not exceed $250,000, |the City, where the difference between the amount recovered |

| |including prejudgement interest and court costs, |and the amount claimed by the City does not exceed $500,000, |

| | |including prejudgement interest and court costs, |

| |payment of up to $1,000,000 from the City’s Self Insurance | |

| |Fund, where the payment is being made as a result of a |settlement of all insured actions, claims, or demands against|

| |settlement entered into by the City’s insurer pursuant to a |the City, and |

| |policy of insurance issued to the City with respect to an | |

| |action, claim or demand against the City; |settlement of all insured actions, claims or demands by the |

| | |City. |

|Agreements and Contracts |12 The City Manager is authorized to: |12 The City Manager is authorized to: |

| | | |

| |a) approve and enter into any and all agreements and |a) approve and enter into any and all sole-source agreements,|

| |contracts, not related to the acquisition or disposition of |not related to the acquisition or disposition of land or an |

| |land or an estate or interest in land: |estate or interest in land in accordance with approved |

| | |policies, procedures, standards or guidelines: |

| |provided that the expenditure or fixed revenue of each | |

| |agreement or contract does not exceed $250,000 and, if the |provided that the expenditure or fixed revenue of each sole |

| |agreement or contract is for a specified term, the term shall|source agreement does not exceed $500,000 and, if the sole |

| |not exceed ten (10) years (including renewals) and the |source agreement is for a specified term, the term shall not |

| |expenditure or fixed revenue shall not exceed $250,000 per |exceed ten (10) years (including renewals), |

| |year, |that provide for a non-fixed or percentage revenue, and if |

| | |the sole source agreement is for a specified term, the term |

| |that provide for a non-fixed or percentage revenue, and if |shall not exceed ten (10) years (including renewals), |

| |for a specified term, the term shall not exceed ten (10) |to retain the services of any individual or corporation, |

| |years (including renewals), subject to any approved policies,|other than legal counsel, for purposes related to the |

| |procedures, standards or guidelines, |operations of the City and complete all necessary documents |

| | |required for the provision of such services, provided the |

| |to retain the services of any individual or corporation, |expenditure under the sole source agreement does not exceed |

| |other than legal counsel, for purposes related to the |$500,000, |

| |operations of the City and complete all necessary documents | |

| |required for the provision of such services, provided the | |

| |expenditure does not exceed $250,000, | |

| | | |

| |necessary to provide insurance coverage for the City; | |

|Tenders |12b) notwithstanding subsection 12(a) hereof, prepare and |12b) notwithstanding subsection 12(a) hereof, prepare and |

| |award all tenders, where the expenditure or revenue is |award all tender-calls, where the expenditure or revenue is |

| |included in an approved budget and enter into all agreements |included in an approved budget and enter into all agreements |

| |and contracts required for the completion of such tenders in |and contracts required for the completion of such |

| |accordance with approved policies, procedures, standards or |tender-calls in accordance with approved policies, |

| |guidelines, provided that the expenditure or revenue does not|procedures, standards or guidelines, provided that the |

| |exceed $1,000,000; |expenditure or revenue does not exceed $20,000,000; |

|Land Agreements |12e) approve and enter into all agreements and contracts |12e) approve and enter into all agreements and contracts |

| |involving: |involving: |

| | | |

| |the sale of the fee simple interest in land at fair market |the sale of the fee simple interest in land at fair market |

| |value, or the acquisition of the fee simple interest in land |value, or the acquisition of the fee simple interest in land |

| |at or below fair market value, provided that the price of the|at or below fair market value, provided that the price of the|

| |land does not exceed $1,000,000, |land does not exceed $3,000,000, |

| | | |

| |leases of land at fair market value where the City is lessor,|leases of land at fair market value where the City is lessor,|

| |provided that the term shall not exceed ten (10) years |provided that the term shall not exceed ten (10) years |

| |(including renewals) and the revenue shall not exceed |(including renewals) and the revenue shall not exceed |

| |$250,000 per year, |$750,000 per year, |

| | | |

| |leases of land at or below fair market value where the City |leases of land at or below fair market value where the City |

| |is lessee, provided that the term shall not exceed ten (10) |is lessee, provided that the term shall not exceed ten (10) |

| |years (including renewals) and the expenditure shall not |years (including renewals) and the expenditure shall not |

| |exceed $250,000 per year, |exceed $750,000 per year, |

| | | |

| |the disposition of any interest in land (not described above)|the disposition of any interest in land (not described above)|

| |at fair market value, or the acquisition of any interest in |at fair market value, or the acquisition of any interest in |

| |land (not described above) at or below fair market value, |land (not described above) at or below fair market value, |

| |provided that the consideration for the acquisition or |provided that the consideration for the acquisition or |

| |disposition does not exceed $250,000 per year; |disposition does not exceed $750,000 per year; |

|Leases to Non-Profit |12f) notwithstanding subsection 12(e) hereof, approve and |12f) notwithstanding subsection 12(e) hereof, approve and |

|Organizations |enter into all contracts and agreements involving leases of |enter into all contracts and agreements involving leases of |

| |land to non-profit organizations at or below market value |land to non-profit organizations at or below market value |

| |where the total lease value does not exceed $250,000 and the |where the fair market value of the lease does not exceed |

| |term does not exceed ten (10) years (including renewals), |$500,000 and the term does not exceed ten (10) years |

| |subject to any approved policies, procedures, standards or |(including renewals), subject to any approved policies, |

| |guidelines; |procedures, standards or guidelines; |

|Burial Plots |12m) approve and enter into all agreements and contracts |12m) approve and enter into all agreements and contracts |

| |involving the disposition or conveyance of burial plots at |involving the disposition or conveyance of burial plots at |

| |fair market value provided that the consideration does not |fair market value provided that the consideration does not |

| |exceed $250,000 per year. |exceed $500,000 per year. |

|Crossing Agreements |12o) approve and enter into all agreement and contracts |12o) approve and enter into all agreement and contracts |

| |involving the acquisition of an interest in land (excluding |involving the acquisition of an interest in land (excluding |

| |leases) at or below fair market value for the purpose of |leases) at or below fair market value for the purpose of |

| |allowing the City to place its public utilities or roadways |allowing the City to place its public utilities or roadways |

| |across land owned by others provided that the consideration |across land owned by others provided that the consideration |

| |does not exceed $250,000 per year. |does not exceed $500,000 per year. |

| |12p) approve and enter into all agreements and contracts |12p) approve and enter into all agreements and contracts |

| |involving the disposition of an interest in land (excluding |involving the disposition of an interest in land (excluding |

| |leases) at or above fair market value for the purpose of |leases) at or above fair market value for the purpose of |

| |allowing a utility operator or transportation provider to |allowing a utility operator or transportation provider to |

| |cross land owned by the City provided that the consideration |cross land owned by the City provided that the consideration |

| |does not exceed $250,000 per year. |does not exceed $500,000 per year. |

|Insurance | |12q) enter into any agreements necessary to provide insurance|

| | |coverage and performance bonds for the City. |

|Federal and Provincial Grant| |12r) enter into provincial and federal grant funding |

|Agreements | |agreements |

|Transportation Utility | |12s) notwithstanding subsection 12(a) hereof, approve and |

|Corridor Agreements | |enter into Alberta Government license of occupation |

| | |agreements relating to the transportation utility corridor |

| | |for an unlimited term provided that the expenditure or fixed |

| | |revenue shall not exceed $250 per year. |

|Legal Counsel |15k) except as other wise instructed by Council, and without |15k) except as other wise instructed by Council, and without |

| |limitation, |limitation, |

| | | |

| |instruct legal counsel to provide legal services to the City,|instruct legal counsel to provide legal services to the City,|

| |Council and Standing Committees of Council, and |Council and Standing Committees of Council, and |

| |retain, instruct and pay for the services of outside legal |retain, instruct and pay for the services of outside legal |

| |counsel provided that the cost of the services retained does |counsel provided that the cost of the services retained does |

| |not exceed $250,000. |not exceed $500,000. |

| | | |

|Employee Seeking Nomination | |12m) grant an application for a leave of absence without pay |

| | |to an employee seeking to be nominated as a candidate in a |

| | |municipal election, pursuant to the Local Authorities |

| | |Election Act, c. L-21. |

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