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HomeMy WebLinkAboutCLK 02-26 Report to Council Report Number: CLK 02-26 Date: March 23, 2026 From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: Establishment of the 2026 Municipal Election Joint Compliance Audit Committee File: A-2000 Recommendation: 1. That Report CLK 02-26 regarding the establishment of the 2026 Municipal Election Joint Compliance Audit Committee be received; 2. That the draft Terms of Reference for the 2026 Municipal Election Joint Compliance Audit Committee, included as Attachment 1 to this Report, be approved; 3. That, in accordance with the Terms of Reference, the City Clerk be authorized to recruit and bring forward a By-law for the remuneration and appointment of a roster of individuals to serve on the 2026 Municipal Election Joint Compliance Audit Committee to a future meeting of Council; 4. That at such time as the above referenced By-law is enacted by Council, the 2026 Municipal Election Joint Compliance Audit Committee is deemed to be established in accordance with the Municipal Elections Act; and, 5. That the appropriate officials of the City of Pickering be authorized to take the actions necessary to implement the recommendations in this report. 1.0 Executive Summary: The purpose of this report is to seek approval of the Terms of Reference to establish the 2026 Municipal Election Joint Compliance Audit Committee (the “Committee”) for the 2026 Municipal Election and to provide authority to the City Clerk to recruit members for the Committee in coordination with the other participating bodies (Durham District School Board, Town of Ajax, City of Oshawa, Town of Whitby, and the Region of Durham). Once approved, the report also provides authorization for the City Clerk to bring forward a By-law for the remuneration and appointment of the roster of individuals to serve on the Committee. Once enacted, the By-law will establish the 2026 Municipal Election Joint Compliance Audit Committee in accordance with the Municipal Elections Act, 1996, S.O. 1996, c. 32, Sched. CLK 02-26 March 23, 2026 Page 2 2.0 Relationship to the Pickering Strategic Plan: The recommendations in this report respond to the Pickering Strategic Plan Priority of Foster an Engaged & Informed Community. 3.0 Financial Implications: The Terms of Reference propose that a retainer fee of $400.00 for each individual on the roster be approved. The retainer covers attendance at a mandatory training session and review of periodic updates or information supplied by the applicable Clerk of each participating body. The retainer fee will also cover any conversations which occur outside of a formal meeting of the Committee, for example virtual meetings with the Clerk, as required. The costs associated with the retainer fees will be shared equally among the participating bodies (Durham District School Boad, Town of Ajax, City of Oshawa, Town of Whitby, Region of Durham and the City of Pickering). In addition to the retainer fee, it is proposed that a rate of $400.00 be paid to each Committee member per meeting attended to address a single report or application, plus an additional $100.00 for each additional application or report considered at the same meeting. Each member would also be paid mileage in accordance with the approved mileage rates for each participating body, and these fees would be paid by the municipality who requires the Committee to convene to consider an application or report. In the event of an application for a compliance audit in Pickering, the City of Pickering would be required to pay any auditor's costs and if applicable, costs associated with any external legal counsel, in accordance with the provisions of the Act. It should be noted that there has been no change in the retainer rates compared to the 2022 Joint Compliance Audit Committee, however, the per meeting rates have been increased from $350.00 to $400.00 and the $100.00 fee for additional applications/reports that are heard at the same meeting has been added for 2026. It was the consensus of the participating bodies to make these rate changes to attract and retain qualified candidates for the Committee. It should further be noted that participation in the Joint Compliance Audit Committee will result in cost savings, as the Region of Durham has agreed to cover the cost of recruitment advertising which is estimated to be approximately $8,000.00. Funds have been included in the approved 2026 Legislative Services budget to cover the Committee retainer fees. Funds to cover Committee meeting rates, should they be required to convene to consider an application or report, will be proposed in the 2027 Budget. 4.0 Discussion: The purpose of this report is to seek approval of the Terms of Reference to establish the 2026 Committee for the 2026 Municipal Election and to provide authority to the City Clerk to recruit CLK 02-26 March 23, 2026 Page 3 members for the Committee in coordination with the other participating bodies (Durham District School Board, Town of Ajax, City of Oshawa, Town of Whitby, and the Region of Durham). Section 88.37 of the Act requires a council or local board to establish a compliance audit committee before October 1 of an election year. The Act further states that the committee shall be composed of not fewer than three (3) and not more than seven (7) members, and shall not include: • employees or officers of the municipality or local board; • members of the council or local board; • any persons who are candidates in the election for which the committee is established; or, • any persons who are registered third parties in the municipality in the election for which the committee is established. 4.1 Compliance Audit Application Process Section 88.33(1) of the Act provides that an eligible elector, who believes on reasonable grounds that a candidate has contravened a provision of the Act relating to election campaign finances, may apply for a compliance audit of the candidate’s election campaign finances. The application must be submitted to the City Clerk in writing, include the reasons for the application, and must be made within 90 days after the latest of the following dates: • the filing date for financial statements; • the date the candidate filed a financial statement, if the statement was filed within 30 days after the applicable filing date; • the candidate’s supplementary filing date, if any; or, • the date on which the candidate’s extension, if any, expires. In accordance with the Act, the Committee must consider any applications received within 30 days. The Committee will review the applications to determine whether the request for an audit should be granted or rejected. If the request is granted, the Committee will appoint an auditor to audit the candidate’s election campaign finances. Upon completion of the audit, the Committee will review the auditor’s report, and it may, if the report concludes that the candidate appears to have contravened a provision of the Act relating to election campaign finances, commence a legal proceeding against the candidate for the apparent contravention. If the report concludes that a candidate does not appear to have contravened a provision of the Act relating to election campaign finances, the Committee may make a finding as to whether there were reasonable grounds for the application for a compliance audit. If the auditor’s report indicates that there was no apparent contravention of the Act and the Committee finds that there were no reasonable grounds for the application, Council is entitled to recover the auditor’s costs from the applicant. Compliance audits can also be commenced if the City Clerk identifies that any contributor to a candidate or registered third party appears to have contravened any of the contribution limits under Section 88.9 of the Act or if an eligible elector believes that a registered third party advertiser has contravened a provision of the Act pertaining to campaign finances. CLK 02-26 March 23, 2026 Page 4 4.2 Joint Municipal Election Compliance Audit Committee – Participating Bodies Prior to the 2018 Municipal Election, the City of Pickering and each municipality in the Durham Region, including the Region itself, established their own individual Compliance Audit Committees. This often resulted in the same individuals being appointed to multiple Compliance Audit Committees, resulting in the payment of multiple retainer fees and per meeting rates to the same individual by multiple municipalities. In 2018, some Durham Region municipalities collaborated on a joint municipal compliance audit committee, similar to York Region, Halton Region, Muskoka and Niagara. The Joint 2018 Committee was a success and demonstrated the expected efficiencies through the sharing of costs related to solicitation, recruitment, training and retainer fees. Additionally, the collaboration allowed for the pooling of resources to advertise across various mediums to attract candidates with the skills required to effectively serve on Compliance Audit Committees. It is important to note that nothing in the Act precludes municipalities from jointly collaborating and sharing a Compliance Audit Committee. The Joint Compliance Audit Committee process was undertaken again for the 2022 Municipal Election and resulted in the same efficiencies. Staff are once again recommending this approach for the 2026 Municipal Election. The participating bodies will embark on a joint recruitment process and will all bring the same roster of individuals forward to their respective councils for appointment through By-law. The Region of Durham has committed to covering the costs for recruitment advertising as well as being the central intake for applications. It is anticipated that advertisements will be placed in Workopolis, the Society of Ontario Adjudicators and Regulators, and Ontario Reports. These have been selected to target candidates with a financial and legal background as it is important that Committee members have an understanding of how to apply the election campaign finance provisions of the Act in order to fulfill their responsibilities. Each participating body will post the ad on their respective websites. 4.3 Recruitment and Selection Process The recruitment of members to the Compliance Audit Committee will be done collectively by the participating bodies with the central intake of applications performed by the Region. All applicants will be required to complete an application outlining their qualifications and experience. A selection committee comprised of the Clerk, or their designate, from each of the participating bodies will identify qualified candidates to form a roster of individuals eligible to serve on the Committee. The following six criteria will be assessed for each individual applicant: • demonstrated knowledge and understanding of municipal elections, including campaign financing rules; • proven analytical and decision-making skills; • experience working on committees, task forces or similar settings; • demonstrated knowledge of quasi-judicial proceedings; • availability and willingness to attend meetings; and, • excellent oral and written communication skills. CLK 02-26 March 23, 2026 Page 5 Preference will be given to individuals with experience in compliance audit activities, accounting, law, law enforcement, investigative or adjudicative processes, municipal elections and academics from related fields. Once the recruitment process has concluded, each participating body will request their respective Council to formally appoint the roster of individuals through By-law. An appointed member of the Committee cannot be an employee, a member of council or a registered candidate or a third-party advertiser of any of the participating bodies. If an appointed member accepts employment or registers as a candidate or registered third party advertiser of any of the participating bodies, they will be deemed to have resigned from the Committee. Further, all Committee members must agree in writing that they will not work or volunteer for, or contribute to, any candidate or registered third party in any capacity in an election of any of the participating bodies. If a person on the roster is identified as having participated or contributed to a candidate or a registered third party, that person shall not be eligible to be selected as a member with respect to a Compliance Audit Application within the applicable participating body where the participation or contribution occurred. Once the roster of individuals has been approved through By-law, and should a compliance audit application be received, the City Clerk shall select three (3) individuals to serve on the Compliance Audit Committee in accordance with the Terms of Reference. Members of the Committee will have the ability to act simultaneously for multiple municipalities which will assist in meeting the tight timeframes under the Act. Upon establishment and appointment of the roster of individuals to the 2026 Municipal Election Joint Compliance Audit Committee, the Municipal Clerks of each participating body will establish administrative practices and procedures for the Committee in accordance with the Act. This will be a collaborative approach amongst the participating bodies and will provide consistency to the members serving on the Joint Committee. In accordance with the Terms of Reference, the mandate of the Compliance Audit Committee is considered complete at the end of the four-year term of Council or when the Committee has disposed of any remaining matters in accordance with the Act, whichever is later. Establishing a Compliance Audit Committee is required by the Municipal Elections Act. Staff are seeking authorization from Council to join with the other participating bodies to create a 2026 Municipal Election Joint Compliance Audit Committee, in accordance with the draft Terms of Reference included as Attachment 1, to deliver a highly professional, transparent and accountable compliance audit function to fulfill the requirements of the Act. Attachment: 1. Draft 2022 Municipal Election Joint Compliance Audit Committee Terms of Reference CLK 02-26 March 23, 2026 Page 6 Prepared By: Susan Cassel, City Clerk Approved/Endorsed By: Paul Bigioni, Director, Corporate Services & City Solicitor SC:ks Recommended for the consideration of Pickering City Council By: Marisa Carpino, M.A. Chief Administrative Officer 1 2026 Municipal Election Joint Compliance Audit Committee Terms of Reference Name: The name of the Committee is the “2026 Municipal Election Joint Compliance Audit Committee” (“the Committee”). Definitions: Act means the Municipal Elections Act, 1996, S.O. 1996, c. 32, as amended from time to time. Applicant means the individual who submitted the Application requesting a Compliance Audit. Application means an Application accepted by the Clerk under sections 88.33(2) and 88.35(2) of the Act. Candidate means the Candidate whose election campaign finances are the subject of an Application for a Compliance Audit. Clerk means the Clerk or secretary of the Participating Body, or their designate. Participating Bodies means the Town of Ajax, Regional Municipality of Durham, City of Oshawa, City of Pickering, the Town of Whitby and the Durham District School Board. Registered Third Party means an individual resident in Ontario, a corporation carrying on business in Ontario or trade union who has filed with the clerk of the municipality responsible for conducting an election, a notice of registration to be a Registered Third Party for the election pursuant to Section 88.6 of the Act, and whose election campaign finances are the subject of an Application for a Compliance Audit. Mandate: The Committee is established pursuant to the requirements of section 88.37 of the Act for the Participating Bodies. The powers and functions of the Committee are set out in section 88.33 to 88.37 of the Act. Attachment 1 to Report CLK 02-26 2 Term of Committee: The term of appointment for the Committee shall be concurrent with the term of office of the council or local board elected in 2026 and shall therefore serve for four (4) years commencing on November 15, 2026 and concluding on November 14, 2030 or until such time the applicable Committee has disposed of any remaining matters in accordance with the Act, whichever is later. Composition: When a compliance audit Application from an elector or a report from the Clerk indicating a Candidate or Registered Third Party has contravened any of the contribution limits under section 88.9 of the Act is received, the Committee comprised of three (3) members shall meet and consider the Application and/or report in accordance with the Act. Members forming the Committee shall be selected by the Clerk from a roster of qualified individuals, who have been jointly recruited and appointed by the Participating Bodies. The following persons are ineligible for appointment: •Employees or officers of any of the Participating Bodies, •A member of council or of a local board of any of the Participating Bodies, •Any persons who are candidates in an election of any of the Participating Bodies for which the Committee is established; or •Any persons who are Registered Third Parties in an election of any of theParticipating Bodies for which the Committee is established. Should an appointed Committee Member accept employment or become an officer with any of the Participating Bodies, become a member of council or of a local board of any of the Participating Bodies, or register as a Candidate or a Third Party with any of the Participating Bodies, they will have been deemed to have resigned. All Committee Members shall agree in writing that they will not work or volunteer for, or contribute to, any Candidate or Registered Third Party in any capacity in an election of any of the Participating Bodies. If a person on the roster to serve on the Committee is identified as having participated or contributed to a Candidate's campaign or Registered Third Party, that person shall not be eligible to be selected as a Member with respect to an Application within the applicable Participating Body where the participation or contribution to a Candidate’s campaign or Registered Third Party occurred. Conduct of Members: 3 Members of the Committee shall comply and conduct themselves in accordance with the Joint Compliance Audit Committee Administrative Practices and Procedures for the Participating Bodies. Members shall not use their position on the Committee for any personal or political gain. Remuneration: Remuneration for Committee Members will be as follows: •$400.00 retainer fee (costs will be shared equally by the Participating Bodies) forthose individuals on the roster. The retainer fee shall cover attendance at amandatory training session and review of periodic updates or informationsupplied by the Clerk of any of the Participating Bodies. The retainer fee will also cover any conversations which occur outside of a formal meeting of theCommittee, for example virtual meetings with the Clerk. Payment of the retainerfee does not denote membership on a committee and covers the four (4) yearterm; and •$400.00 per meeting attended, plus an additional $100.00 for any additional Application and report being considered after the first one, during the samemeeting; plus mileage in accordance with the rate normally paid to employees ofthe applicable Participating Body. The per meeting rate shall cover review ofbackground or agenda materials as required in preparation for a meeting. Membership Selection: At a minimum, the recruitment of persons to be included on the roster of individuals shall be advertised on the websites of the Participating Bodies. Other targeted recruitment measures may be initiated by the Clerks of the Participating Bodies. All applicants will be required to complete an application and may be subject to further screening and an interview. The selection process will be determined by the Clerks of the Participating Bodies. Applicants must have the ability to understand and apply the election campaign finance provisions of the Act and must remain impartial in order to fulfill their responsibilities. Preference will be given to candidates that have experience related to compliance audit activities or investigative or adjudicative processes. The following criteria will be considered when considering members: •Demonstrated knowledge and understanding of municipal election campaignfinance rules, •Proven analytical and decision-making skills, •Experience working on committees, boards, adjudicative bodies, task forces orsimilar settings, 4 •Experience in accounting and audit, law, law enforcement, academics, ormunicipal administration from related fields, •Demonstrated knowledge of quasi-judicial proceedings, •Availability and willingness to attend meetings; and, •Excellent oral and written communication skills. Meetings: Meetings will occur as needed and shall be conducted in accordance with the Joint Compliance Audit Committee Administrative Practices and Procedures for the Participating Bodies. Chair: At the first meeting of a Committee on a particular report or Application, the members shall appoint one member to act as Chair for the duration of the Committee’s deliberations. Role of Clerk: The Clerk will act as the main contact between the Committee, compliance audit Applicant, Candidate and Registered Third Party. In accordance with section 88.37(6) of the Act, the Clerk shall carry out any duties required under the Act to implement the Committee’s decisions. Where the Clerk or Committee determines that the Committee requires legal assistance in respect of a specific report or Application, or for other matters such as the Committee’s role, interpretation of legislation, procedure, or other matters of a general nature pertinent to the Committee’s business, the Clerk, in consultation with the Participating Body’s solicitor, shall retain legal counsel to provide advice that may be subject to solicitor client privilege to the Committee. Administrative Practices and Procedures: The Clerk(s) of the Participating Bodies shall establish administrative practices and procedures for the Committee in accordance with s. 88.37(6) of the Act and shall carry out any other duties under the Act to implement the Committee’s decisions. The Clerk(s) of the Participating Bodies may be required to make administrative changes to these Terms of Reference or the administrative practices and procedures from time to time due to legislative changes, or if, in the opinion of the Clerk(s), the amendments do not change the intent of the Terms of Reference or the administrative practices and procedures.