Report to: General Committee Report
Date:
SUBJECT: Procedural By-law Governing the Delegation of Authority to Real Property Matters
PREPARED BY: David Pearce, Manager of Real Property
RECOMMENDATION:
That the report entitled “Procedural By-law Governing the Delegation of Authority of Real Property Matters” be received,
That approval for the acquisition, disposition, lease or licence of real property be delegated to the Chief Administration Officer or designate, within the limitations set out in this report.
That Council enact a by-law to provide for the delegation of authority for those real property matters set out in the draft by-law attached to this report.
And that Staff be authorized and directed to do all things necessary to give effect to this resolution.
EXECUTIVE SUMMARY:
Not applicable.
FINANCIAL CONSIDERATIONS:
Not applicable.
PURPOSE:
To recommend that the Town enact a by-law to delegate Council authority to the Chief Administrative Officer for routine real estate transactions.
BACKGROUND:
The Town’s current procedure respecting all real estate transactions is to report to Committee and Council regardless of the nature and/or scope of the transaction. This often results in Council considering a number of routine type reports with very little financial impact or controversy. Further, the existing approval process is time consuming for both Council and staff which in turn impacts service delivery and cost-effectiveness.
OPTIONS/ DISCUSSION:
Section 9 of the Municipal Act, R.S.O 2001, as amended by Bill 130, grants to municipalities the powers of a natural person for many purposes, including the ownership and management of its real estate holdings. Municipalities are entitled to delegate their natural person powers within the parameters that they consider appropriate.
Staff have canvassed several municipalities with respect to the extent of their delegated authority powers. A summary of responding municipalities (Attachment 1) indicates a trend toward the delegation of all types of real property transactions, subject to limitations respecting price. Generally speaking, delegated matters are not limited to only minor transactions such as licences, permission to enter agreements, grants, rights of way, easements, and leases, but also land acquisitions and dispositions.
Delegating the approval of the more routine administrative real property transactions will reduce the number of reports required for transactions which are minor. An additional advantage of the delegation of authority to staff is the reduction in the waiting period between the negotiations of agreements with property owners and the formal Committee and Council approval process. As a result, staff will be in a position to close the transactions in a more timely manner, responding to the needs of our stakeholders. The potential reduction in property acquisition timelines is extremely valuable in providing additional flexibility for construction projects having strict timelines.
The recommended policy governing the delegation of authority to staff is summarized as follows:
Real Property Acquisitions and Licences
The following licences and real property acquisitions should be delegated to the CAO – in consultation with (or on the recommendation of) the Town Solicitor, Manager of Real Property, Director of Engineering Services and Parks Services on the terms set out below. For the purposes of this approval, “licence” includes permissions to enter real property and similar agreements.
Acquisitions
- The acquisition price does not exceed a maximum of $50,000;
- Sufficient funds are available within the departmental operating or capital budgets as approved by Council;
- The acquisition price is at or below fair market value;
- Fair market value shall be determined by an appraiser and is subject to approval by the Manager, Real Property; and
- The acquisition agreement is in a form and content satisfactory to the Chief Administrative Officer and Town Solicitor.
Real Property Leases/Licences
For the purposes of this approval, “leases” shall include leases of land or buildings.
- The lease or licence value over its term does not exceed a maximum of $50,000;
- Sufficient funds are available within the departmental operating budgets approved by Council;
- The rent is at or below fair market value;
- Fair market rent shall be determined by an appraiser or the Manager, Real Property;
- The term of the lease or licence, including any renewal, does not exceed 10 years; and
- The lease or licence agreement is in a form and content satisfactory to the Chief Administrative Officer and Town Solicitor.
Dispositions
For the purposes of this approval, disposition means a sale and includes a lease of Twenty-one (21) years or longer.
- The disposition value does not exceed $50,000;
- The subject real property has been declared surplus by Council in accordance with By-law 178 -96, as may be amended from time to time, being a by-law to govern the sale of surplus real property;
- The disposition is at or above fair market value as determined by an appraisal and approved by the Manager, Real Property; and
- The disposition agreement is in a form and content satisfactory to the Chief Administrative Officer and Town Solicitor.
Staff will report back to Council on a bi-annual basis with a summary of the delegated real property transactions that have taken place during the previous reporting period.
Notwithstanding the above limitations, staff recommend that any and all real property matters having a high corporate/community profile and /or controversy will be placed before Committee or Council for consideration and approval.
ENVIRONMENTAL CONSIDERATIONS:
None
ACCESSIBILITY CONSIDERATIONS:
None
ENGAGE 21ST CONSIDERATIONS:
The delegation of routine real property matters will assist in the Town achieving excellence in managing and delivering quality services.
BUSINESS UNITS CONSULTED AND AFFECTED:
Clerks, Finance.
RECOMMENDED
BY: ________________________ ________________________
David Pearce John Livey
Attachment 1 Delegated Authority Comparison Chart
Attachment 2 Draft By-law