4.0 Governance

Governance generally refers to how a municipal government organizes and manages itself. Examples of common governance practices include how a municipal government exercises its political authority, how it establishes directions and how it reaches and implements decisions. Basically, following good governance practices is an important part of keeping a municipal government on-track and out of trouble.

The topic of governance can be a bit tricky to understand as some governance practices are mandatory (i.e. legislative or contribution agreement requirements) while others are either recommended or optional.

Governance practices that are mandatory for all municipal governments include:

• Ensuring that a municipal government does not exceed its authority (as set out in its municipal legislation).

• Using a bylaw to enact policy where required by legislation. Examples of mandatory bylaws include Rules of Procedure for Council, appointment of a Senior Administrative Officer and adoption of a corporate seal. In many instances where Council wants to exercise its authority there needs to be a bylaw such as Honoraria, Municipal Service Rates, Borrowing and Long-term debt. In addition, there are specific procedures that a Council must follow to adopt a bylaw.

• Developing necessary long-term plans such as a Strategic Plan, Capital Plan, or Community Energy Plan, etc.

Areas where a Council has the flexibility to decide how it wants to organize and manage the community and the municipal government’s operations include:

• Discretionary bylaws – areas in which a Council has the choice to adopt a wide range of bylaws include setting a term of office (two or three years), making rules for public meetings, developing code of ethics for Councillors, setting terms of employment for staff, animal control, regulating snowmobiles and other vehicles, undertaking local improvements, delegating authorities and establishing a board or commission.

• Certain types of planning – a Council can choose to develop and implement a variety of plans depending on its circumstances. Some common examples include a land use plan, recreation plan, wellness plan, economic development plan, etc.

• Policies and procedures – when a Council decides to provide guidance and direction to its administration or to itself and a bylaw is not required to exercise this authority, Council may, by resolution, adopt policies and procedures. As policies only bind the municipal government and not the residents, most policies deal with the internal operation of the municipal government in areas such as financial and human resource procedures.

Sections 4.1 to 4.4 below provide information on best practices a community government can follow to ensure good governance.

Planning is an essential part of good governance. Planning involves setting goals, developing plans for achieving the goals and allocating resources (money, people, skills, time) to implement the actions within a plan.

Planning helps a Council and Administration be proactive, not reactive. Managing in a proactive way involves anticipating problems, assessing risks and taking actions before difficulties occur. To be proactive, a Council needs to plan and set priorities.

The LGA’s role in any planning exercise is to support Council by:

• Gathering required information to provide a summary of the current situation and pressures;
• Providing advice, options and alternatives;
• Identifying resources (financial and human) available to help facilitate planning work;
• Leading the implementation of a plan once it is approved by Council;
• Encouraging monitoring of progress achieved and regular reviews and revisions to a plan based on results, new priorities, changes in resources, etc.

The most common types of planning that can help community governments are summarized below:

A strategic plan is the “big picture” plan for a community and usually contains the following things:

• A long-term vision for what the community will be like in five or 10 years;
• Key values, such as maintaining culture, protecting the environment and building local capacity that are important to the community;
• Specific goals and actions that will help the community achieve its vision.

Some of the steps often involved in creating a strategic plan include:

• Taking stock of what needs to be done to improve the quality of life in the community;
• Holding public meetings and other ways to communicate to help determine community priorities and wishes;
• Hiring consultants or other specialists to provide advice and support;
• Consulting with the NWTAC, LGANT or MACA staff or other communities to identify what has worked (and not worked) in other communities.

Once a strategic plan is in place, it should serve as a guide to Council in making decisions and allocating resources (setting priorities, establishing budgets, initiating projects etc). Council should review the plan on a regular basis to see whether progress is being made or if changes are needed.

Similar to a strategic plan, an Integrated Community Sustainability Plan (ICSP) is a long-term plan that helps a community with the sustainable development of its cultural, social and economic goals and objectives. Under the terms of the Canada – NWT Gas Tax Fund Agreement, all NWT municipalities were required to complete an ICSP by March 31, 2010. In doing so, municipalities were required to include the following four components in their ICSP:

• Strategic plan
• Human resources plan
• Energy plan
• Capital plan

A community ICSP is intended to be a “living document” that needs to be reviewed and updated on a regular basis. An ICSP example can be found here (Enterprise ICSP)

Without competent staff, a municipal government cannot deliver programs and services to residents or take care of its business. Given the competitive job market that exists in the NWT and elsewhere, human resource planning is an important tool for attracting and retaining qualified staff.

MACA developed the Community Government Human Resource Development System to assist municipal governments with human resource development.

The elements of the system include:

• Planning
• Job descriptions
• Recruitment and selection
• Orientation
• Training and development
• Performance evaluation

Additional information on human resource development and staffing is provided in Section 5.

Community infrastructure planning (or capital planning) is an important tool that can help a municipal government minimize operating costs and maximize the delivery of programs and services to residents.

Infrastructure includes all the physical assets a municipal government owns and operates such as buildings, water and waste systems, mobile equipment (heavy equipment, trucks, vehicles), recreational facilities and earthworks (roads, gravel pits).

Ensuring the community infrastructure is in good shape and has sufficient capacity is essential for the delivery of programs and services. Typically, a capital plan helps a municipal government answer the following questions:

• How long will our existing equipment and facilities last?
• What upgrades or renovations are needed and when will they be needed?
• What are the priorities for new infrastructure and why?
• How will we pay for these projects?
• When do these projects need to be done?

Additional information on capital planning is provided in Section 7.

A community land use plan sets out how Council wants the physical development of the community to proceed. Often, this type of plan is created in the form of a map that shows key features in the community, including:

• Boundaries of geographic areas;
• Legal descriptions of parcels of surveyed land;
• Ownership of parcels of land (legal authorities);
• Buildings footprints and the outline of structures;
• Important cultural and historic sites (to be protected);
• Current (and future) transportation routes;
• Appropriate areas for residential, commercial / industrial and recreational development; and,
• Potential areas for future expansion or growth.

MACA’s Lands Administration Division supports community land use planning by arranging and managing aerial and topographic mapping of each community in the NWT. These maps are available to the public through a system called ATLAS. An Atlas User Tutorial is also available.

A community energy plan identifies ways to reduce energy use, energy costs and environmental impacts within the community. More information on energy planning is provided in section 8.5

There are also other types of plans a community government may decide to develop and implement, including:

• Recreation Plan – creates an inventory of recreation facilities, identifies goals and actions to achieve the goals.

• Emergency Plan – identifies people and resources that can help in the event of an emergency. Communities are required to prepare for emergencies like forest fires, floods, extended power outages or extreme weather events.

• Economic Development Plan – sets goals and objectives for local economic development and identifies strategies, programs and projects to be implemented to reach these goals and objectives.

How meetings are organized and conducted can affect a Council’s success and the public’s perception of its effectiveness.

Some key points about Council meetings:

• A meeting must be held at least once per month and be properly advertised.
• Council is required to develop and pass a Rules of Procedure Bylaw that contains the rules for the setting and conduct of all Council and committee meetings and the behavior of Council members.
• Meetings should begin on time.
• A quorum must be maintained at all times during the meeting.
• All regular, special and committee meetings are held in public. The exception to this is when a resolution has been passed by two-thirds of the members present to move to close the meeting and hold a private (in-camera) meeting. This can only be done in very limited and specific situations, for example, to deal with confidential topics such as legal, personnel or real property issues.
• Administration must make a written record, or minutes, of all Council and committee meetings and minutes must be adopted by Council.

A Council meeting should be well-organized and Council members should be well prepared.

Key tasks for the LGA usually include:

• Drafting the agenda (Enterprise Council Agenda Example) – this should be prepared using input from the Mayor/Chief and may include input from Councillors, staff, outside advisors, and others. The agenda items should be organized carefully so the Council can address items in a logical and efficient manner. The format for the agenda is often specified in the Rules of Procedure by-law (see below). Often, the more important items are placed at the beginning.

• Preparing an information package – any supporting materials, such as letters, reports, memos, draft motions, etc. should be organized in a package and distributed to all Council members well in advance of the meeting. For their part, all Council members should review the agenda and materials and come to the meeting prepared.

• Translation – if translators are participating in the meeting, they should be given a copy of the agenda and all supporting materials to assist them in providing quality translation services. This is particularly important if technical terms are likely to be used.

• Public participation – residents should feel welcome to participate in meetings. If residents want to address Council, there should be clear rules on how residents can get on the agenda.

• Guests – often government officials, consultants and other individuals from outside the community are invited to participate in a Council meeting. In these instances, it is important that the LGA communicate with the visitors in advance to ensure they are available when Council needs them. It should also be clear what is expected of them by Council or, conversely, what their purpose and objectives are in addressing Council.

There are several factors that contribute to a well-run, effective Council meeting:

1. Rules of Procedure Bylaw (Whati Council Procedures Bylaw, Ft. Simpson Council Procedures Example) it is mandatory that a community government establish and follow rules of procedure for Council meetings. This must be done by bylaw and should include rules outlining:

• The calling of meetings of Council and its committees;
• The procedure of Council;
• The attendance of Council members at meetings of Council and its committees;
• The conduct of meetings by electronic means;
• The procedures for voting at meetings of Council and its committees;
• The Mayor’s or Chief’s voting rights;
• The behaviour of Council members and other persons present at meetings of Council and its committees;
• The establishment, appointment and duties of committees of council and the general transaction of its business.

Some optional rules are:

• Deemed resignation for lack of attendance
• Code of Conduct or Code of Ethics
• Holding of Private Meetings
• Appointment of Acting Mayor or Chief
• Process for filling a vacant council seat

2. Role of Chair. The Mayor or Chief normally chairs all meetings of Council and is responsible for making sure the meeting runs smoothly and that Council procedures are followed. The Chair is also responsible for:

• Keeping order in the meeting;
• Encouraging participation;
• Asking questions to ensure all points are covered and understood;
• Summarizing discussions and noting areas of agreement or disagreement; and,
• Calling for votes on an issue once there has been adequate discussion.

3. Role of LGA. The LGA can contribute by providing a well-designed agenda and all necessary supporting documents. During the meeting, the LGA supports Council by providing guidance on policies, bylaws, procedures, issues, potential solutions and making sure Council doesn’t do something inappropriate. The LGA is also required to ensure that notes are taken, that decisions are recorded and that minutes of the meeting are prepared.

Minutes are the official record of the meeting and are required by law. They must be made available to the public. Minutes (Enterprise minutes) should include:

• A record of the Council members in attendance as well as those absent from the meeting;
• A brief summary, by agenda item, of key points made during the meeting, who moved and seconded a motion and whether the motion was carried. If a statute, bylaw or policy was relied upon or referred to in a motion, this should be recorded.

It should be noted that meeting minutes are considered to be in “draft form” until they are reviewed and approved by Council (which usually occurs at the following Council meeting).

Another aspect of good governance is how a Council makes and records its decisions. This can be done in several different ways, such as a policy, a bylaw or a resolution.

Policies are written statements that Council and Administration use when making future decisions. Common examples include financial policies, purchasing policies, human resource policies, travel policies and facility rental policies. Policies provide direction and authority to the LGA to act in a predictable manner in specific situations without having to seek Council approval.

Council and the LGA usually develop a policy together. In developing a new policy, the LGA should conduct research to make sure the municipal government has the proper authority. As well, public input should be sought if the policy will affect community residents in some way. A policy doesn’t take effect until it has been approved by Council in a regular or special meeting, either through bylaw or as a resolution.

Once in place, it is the Administration’s job to see that the policy is carried out. Often, a policy is supported by rules or procedures which are used to explain how the policy is applied.

Bylaws are community laws that set out the municipal government’s authority. Bylaws are passed by Council and usually involve exercising control on items or activities that Council is responsible for according to legislation. Common examples of issues addressed through bylaws include:

• Safety, health and welfare of people and their property;
• Public order, peace and safety;
• People, activities or things occurring in a public place;
• Public nuisances, including unsightly property;
• Transport, motor vehicles and pedestrians;
• Management, use and protection of lands, including land use planning;
• Businesses and business activities;
• Public utilities;
• Programs, services and facilities provided or operated by the community government;
• Internal management of the community government; and,
• Enforcement of bylaws.

Putting a bylaw in place is more formal than implementing policies. There are specific procedures that must be adopted, including:

• Must be in writing before first reading is given;
• Must have three separate readings by resolution;
• May require the approval of the electorate in the community or may require the approval of the Minister of MACA;
• May require public hearing or minimum public notice before proceeding to second or third reading; and
• All bylaws must be sent to the Minister of MACA not later than 10 days after it receives third reading.

Bylaws (Elements of a Council Procedures Bylaw) are the correct way to make decisions when it is required by legislation or when the decision binds the public to behavior in certain ways or where the public will be impacted. When there is a question whether a decision should be done by bylaw or by policy, it is always wiser to do it by bylaw.

Resolutions represent Council’s position or decision on a specific question, such as an event or short-term issue. Council passes resolutions to provide direction to the LGA. In order to approve a resolution, it must be moved and seconded and is either adopted or defeated by a majority vote of the members present during the meeting (there must be a quorum present).

Community government leaders need to be aware of, and avoid, conflict of interest or the appearance of bias. Council members are public figures entrusted to lead the community. It is important that members of Council are not influenced improperly or making decisions that benefit a specific person or firm but are not in the public’s interest. Similarly the LGA and staff need to be aware of their obligations to make decisions in the best interest of public and not be influenced by private interests or give the appearance of bias.

A conflict of interest situation can arise in two ways:

• Actual conflict – a member has a direct or indirect interest, or is affected in some way, by a matter that is currently before a Council for consideration; or,

• Perception of conflict – a member of the public may reasonably perceive that a member of Council could have a conflict of interest, even if such a conflict doesn’t actually exist in law.

In accordance with the Conflict of Interest Act, any member of Council with a conflict of interest is required to disclose the full nature and extent of the interest and cannot vote on the matter or attempt to influence other members’ consideration of the matter at hand.

In these situations, many Councils have adopted, either through bylaw or practice, that the member leaves the room while the matter at hand is dealt with by the remaining members.

Section 3 of the Act specifies that if the remaining members of Council would then not make a quorum as a result of the absence of the member(s) in conflict, the remaining members shall, if they number at least two, be considered to constitute a quorum and can continue the meeting.

The disclosure of a conflict of interest must be recorded in the Council meeting minutes.