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A Report on the Inspection of The Town of Peace River

December 1, 2014

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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

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.

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:

• Legislative Responsibilities and Powers

• Representation of the Public

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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

• the morale of the organization

• the ethical compass of the organization

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Role of Senior Management (2)

• 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.

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Senior Management Practices

• 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

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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

• A reviewed and potentially revised Procedural Bylaw

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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)

6.9Key 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?