Report to: General Committee Report Date: March 4, 2008

SUBJECT: Bill 130 – Impact on Business Improvement Areas (BIAs)

PREPARED BY: Kimberley Kitteringham, Deputy Town Clerk

RECOMMENDATION:

That the report entitled “Bill 130 – Impact on Business Improvement Areas (BIAs)” be received for information purposes; and,

That a copy of the report entitled “Bill 130 – Impact on Business Improvement Areas (BIAs)” be provided to Markham’s BIAs for information/action.

FINANCIAL CONSIDERATIONS:

Not applicable

1. Purpose 2. Background 3. Discussion 4. Financial

5. Others (Environmental, Accessibility, Engage 21st, Affected Units) 6. Attachment(s)

PURPOSE:

The purpose of this report is to provide Council with an overview of the amendments to the Municipal Act, 2001 arising from Bill 130 as they pertain to Business Improvement Areas (BIAs) as requested by the General Committee at the meeting on October 29, 2007.

BACKGROUND:

Significant amendments to the Municipal Act, 2001 (the “Act”) as a result of the passage of Bill 130 came into effect on January 1, 2007. Although the revised Act continues most sections pertaining to BIAs without change, there are some significant changes that impact BIAs. The Province has indicated that the intent of these changes is to provide municipalities with greater flexibility to meet local expectations and fulfill responsibilities.

OPTIONS/ DISCUSSION:

Under the Act, a local municipality may designate an area as an improvement area and may establish a board of management:

a) to oversee the improvement, beautification and maintenance of municipally-owned land, buildings, and structures in the area beyond that provided at the expense of the municipality generally; and

b) to promote the area as a business or shopping area.

With the passage of Bill 130, BIA management boards have now been designated as local boards of the municipality for all purposes (204) (2.1). This gives municipalities greater flexibility to make changes relative to the operation of the boards should they choose to do so. In particular, municipalities may:

• enact a general by-law regarding the accountability, transparency, financial management and the governance structure of local boards, including BIA boards (Sections 10(2) and 11(2)); and,

• dissolve or change BIA boards (Section 216(1).

Some of the specific changes a municipality may make to a BIA’s by-law include (Sections 216(5) and 196):

• The name, composition, quorum and budgetary process of the board;
• The eligibility of persons to hold office as board members;
• The manner of selecting board members, the resignation of members; the determination of when a member’s seat becomes vacant and the filling of vacancies;
• The term of office and remuneration of board members;
• The number of votes of the board members;
• The requirement that the board follow rules, procedures and policies established by the municipality;
• The relationship between the municipality and the board, including their financial and reporting relationship; and
• The restriction or expansion of the mandate of the board.

Accountability and Transparency

Bill 130 stipulates that all BIA meetings are to be open to the public, unless explicitly authorized by the Act to be closed (i.e. security of property; personal matter about an identifiable individual, including employees; proposed or pending acquisition or disposition of land; labour relations or employee negotiations; litigation; solicitor-client privilege; education or training). Bill 130 also provides that minutes and public notice are required for all BIA meetings, including education and training sessions. Notice provisions are to be contained within a Procedural By-law, along with other meeting conduct rules. This means, for example, that Annual General Meetings of BIAs can no longer be closed to the public unless it is for a reason permitted under the Act (as outlined above). It should also be noted that the Town of Markham has appointed an Investigator whose role is to investigate complaints where closed meetings have been held contrary to the rules. A copy of a newly revised Rules and Procedures for Town Committees document will be distributed to the Town’s BIAs, along with copies of this report once approved by Council. The document can be adapted for BIA use.

Future Policy Considerations

Sections 270 & 271 of the Act require BIAs (as local boards) to develop and adopt written policies for the following:

1. Sale or other disposition of land
2. Hiring of employees; and
3. Procurement of goods and services, sale and other disposition of land.

With respect to the above, the Town’s BIAs have been advised that an opportunity exists to simplify existing Town policies for BIA use if desired.

The Act also now permits municipalities to establish codes of conduct for local board members and appoint an integrity commissioner to oversee the code (223.2(1).

Financial Management

Currently, the Town of Markham’s involvement in the financial management of local BIAs is restricted to the collection of the levy (BIA levy based on property assessment value for properties included in business improvement area) and the processing of BIA approved invoices. The Act now permits the municipality to establish a “municipal service board” instead of a BIA board and to establish fees and charges rather than a levy, to collect funds for the budget. The fees and charges would only be for cost-recovery of services/activities provided or conducted by the board and for use of its property (section 391(1.1)). The current levy is based on the budget needs of BIAs and is not limited in its purpose (section 208). The Act now provides sufficient flexibility to make changes to BIAs if required, without having to create municipal services boards.

The Ministry of Municipal Affairs and Housing has indicated a willingness to provide Town Council with a presentation on the impact of Bill 130 on BIAs should Council wish to have one. If such a presentation was to take place, Clerk’s would extend an invitation to the executive of both BIAs to attend.

FINANCIAL TEMPLATE:

Not applicable

ENVIRONMENTAL CONSIDERATIONS:

Not applicable

ACCESSIBILITY CONSIDERATIONS:

Not applicable

ENGAGE 21^ST CONSIDERATIONS:

Not applicable

BUSINESS UNITS CONSULTED AND AFFECTED:

Financial Services

Legal Services

RECOMMENDED BY:

________________________ _____________________________

Sheila Birrell Andy Taylor

Town Clerk Commissioner of Corporate Services

ATTACHMENTS:

None

Q:\Clerks\Administration\Kimberley\Municipal Act\BIAs