S3 Report to/rapport au: OTTAWA PUBLIC LIBRARY BOARD CONSEIL D ADMINISTRATION DE LA BIBLIOTHÈQUE Submitted by/soumis par : Danielle McDonald Chief Executive Officer / Directrice générale Contact Person / Personne ressource: Elaine Condos (613) 580-2424 x32180, 2TUElaine.Condos@BiblioOttawaLibrary.ca U2T USUBJECT:U Board Delegation of Authority Policy Ref N : OPLB-2013-0075 UOBJET :U Politique sur la délégation de pouvoir du C.A. UREPORT RECOMMENDATION That the Ottawa Public Library Board approve the draft Board Delegation of Authority Policy. URECOMMANDATION DU RAPPORT Que le conseil de la Bibliothèque publique d Ottawa approuver la politique provisoire sur la délégation de pouvoir du C.A. UBACKGROUND In 2012 the Ottawa Public Library Board completed a governance review. On November 19, 2012, the Board received the governance review which included a nine-point action plan. Two action items have been completed to date: disbanding standing committees; and, approval of a recommendation to reduce the size of the Board. The seven remaining action items are the responsibility of the Chief Executive Officer and scheduled for completion in 2013-2014; a status update was provided to the Board in May.
2 CONSEIL DE LA BIBLIOTHÈQUE This report focuses on Action Item #4: Develop a comprehensive Delegation of Authority policy, with Board input as appropriate, that clearly defines the decisions that are reserved by the Board and those that the CEO/Staff may make, for Board review and approval. UDISCUSSION Transform Management Consulting Inc. was engaged in January 2013 to provide assistance in the implementation of key action items relating to Board governance and policy. The scope of work includes development of a comprehensive Delegation of Authority policy ( the Policy ). On May 13, 2013, the Board approved trustees Jim Bennett and Patrick Gauch to work as an ad-hoc group to review the draft Delegation of Authority Policy (Appendix 1). The group met with consultant, Jacques Levesque and staff on June 3, 2013 and input received has been incorporated into the draft policy. In addition, Mr. Levesque will be in attendance at the Board meeting to speak to the Board about the proposed Policy. The Delegation of Authority Policy is premised on the Public Libraries Act, RSO 1990, c.p. 44 (the Act). Under the Act the Board retains accountability for the full range of decisions affecting the organization but can delegate decision-making powers to the CEO or his/her designate. The Board may impose such terms and conditions upon any delegation of authority, including the power to vary the terms or rescind the delegation in question. In accordance with the Board s policy-based governance model, the proposed Policy reflects a strategic, not operational, focus. The Policy incorporates an easily understood Delegation of Authority Framework (Table 1) providing a summary of the range of decisions and authority for each decision. The following sections of the draft Policy are being highlighted to the Board: USection 2.2: Emergency or Special Circumstances The purpose of this section is to support timely decision-making in unique emergency circumstances. To support implementation, the CEO is responsible for development of
3 CONSEIL DE LA BIBLIOTHÈQUE an emergency management plan that is triggered when special circumstances arise. USection 3: Delegation of Authority Framework ( the Framework ) Each item in the Framework requires policies to support it and will be reviewed against existing policies to determine if revision or updating is required. Where a policy gap is identified, then a new policy will be developed, e.g. CEO reporting requirements in accordance with the approved delegation of authority. This review of existing Board policies, as well as development of an action plan, will be led by the CEO for completion in Q4 2013. In addition, on a go-forward basis, Board policies will refer back to the Delegation of Authority Policy regarding approval levels. Background information is being provided on the following items in the Framework: UItem 4: Approved authority for general competitive and non-competitive expenditures Current approval thresholds (approved in 2004) for expenditures are: Board approval is required for $100,000 and CEO approval for < $100,000. Recommended approval levels for expenditures are: Board approval will be required for $150,000 and CEO approval for < $150,000. Discussion by the Ad- Hoc group was that, although this increase represents a change for the Board, it may not be sufficient and future increases could be phased in. It was also indicated a long term approach to consider is to delegate to the CEO spending authority for the approved operating and capital budgets. UItem 5: Approved spending authority for library materials On December 13, 2004, the Board approved the delegation of all spending authority for library materials to the CEO. This exemption from the general purchasing authority is required because, in contrast to other commodities and services purchased by OPL and the City, materials for the library collections cannot generally be anticipated in advance. The purchase of library materials is based on excellent customer service, in particular, timeliness and selection, and the best available price. The 2013 operating budget for library materials is $4.882 million; capital funding is also available through Development Charges. Operational requirements could not be supported if Board approval was required in advance of all purchases totaling $150,000 or more per vendor.
4 CONSEIL DE LA BIBLIOTHÈQUE UPolicy Review The Ad-Hoc group is recommending that the Board s Delegation of Authority Policy be reviewed on a four year cycle with the review occurring in the first quarter of the second year of the Board term. The Ad-Hoc group acknowledged that the proposed Policy does represent a significant change and some gaps may be identified through initial implementation which could necessitate an earlier review of the Policy. UCONSULTATION The draft Delegation of Authority policy has been reviewed by trustees Jim Bennett and Patrick Gauch; Danielle McDonald, Chief Executive Officer; Library Senior Management Team; Brenda Gorton, Account Manager, Financial Services Unit; and Jacques Levesque, President and CEO, Transform Management Consulting Inc. ULEGAL IMPLICATIONS There are no legal implications. URISK MANAGEMENT IMPLICATIONS There are no risk management implications. UACCESSIBILITY IMPACTS There are no accessibility impacts. UTECHNOLOGY IMPACTS There are no technology impacts. UFINANCIAL IMPLICATIONS There are no financial implications.
5 CONSEIL DE LA BIBLIOTHÈQUE UBOARD PRIORITIES The subject of this report is in alignment with Board-approved strategic direction Excellence in Governance, Accountability and Financial Sustainability. Development of a Delegation of Authority policy was identified as a key Board initiative for 2013. USUPPORTING DOCUMENTATION 1. Materials Purchasing Practices, December 13, 2004. 2. City of Ottawa Purchasing By-law No. 50 of 2000 (Last amended October 10, 2011) 3. Board Governance Review, November 19, 2012, T2Uhttp://www.biblioottawalibrary.ca/sites/biblioottawalibrary.ca/files/Board_Docs/12 1119/02-Board%20Governance%20Review%20%28Full%20Package%29.pdf U2T 4. Board Governance Policy Review and Development, May 13, 2013, T2Uhttp://www.biblioottawalibrary.ca/sites/default/files/Board_Docs/130513/Doc%204 %20Board%20Governance%20Policy%20Review%20and%20Development.pdf U2T UDISPOSITION Upon approval by the Board, the Delegation of Authority policy will be communicated to City of Ottawa Supply Branch and OPL managers. The CEO will bring a report to the Board in September 2013 outlining proposed reporting requirements. The CEO will bring a report to the Board in Q4 2013 outlining an action plan for identifying changes to Board policies to support the Delegation of Authority Policy.
6 CONSEIL DE LA BIBLIOTHÈQUE Appendix 1: OTTAWA PUBLIC LIBRARY BOARD POLICY TYPE: Executive Limitations POLICY TITLE: POLICY NUMBER: Board Delegation of Authority DATE OF BOARD APPROVAL: DATE LAST REVIEWED: DATE REVISED: MONITORING POLICY 1. Background and Principles In keeping with the Public Libraries Act, RSO 1990, c.p.44 (the Act), other relevant statutes, laws, and good governance practices, the Board retains accountability for the full range of decisions affecting the organization. The Board has decided, however, to use a policy or strategic model of governance that focuses most of the attention of the Trustees on setting strategic direction and objectives, making decisions on major projects and monitoring performance. In keeping with section 15 of the Act, the Chief Executive Officer (CEO) shall have general supervision over, and direction of, the operations of the public library and its staff and shall have the other powers and duties that the Board assigns to him or her from time to time. Table 1 provides the framework regarding the range of decisions that may be required to operate the library and whether the Board retains decision-making powers or delegates them to the CEO or his/her designate. The Board may impose such terms and conditions upon any delegation as it sees fit, and this shall include the power to vary such terms or rescind the delegation in question.
7 CONSEIL DE LA BIBLIOTHÈQUE 2. Policy Interpretation and Details 2.1 Further Delegation of Authority The CEO is authorized to further delegate and to authorize further delegations of any powers, duties and functions delegated to the CEO by the Board under this or any other policy to any member of OPL staff provided such delegations are authorized in writing. Where authority is delegated to a specific employee in this policy, the authority may be further delegated by the authorized person to other employees provided that such delegation is authorized in writing and does not exceed the authority delegated to the authorized person. 2.2 Emergency or Special Circumstances In cases of emergency or special circumstances where it is necessary to act within or outside the normal mandate of the OPL, but such action is not strictly within the terms of a delegated authority, the CEO may take such action as necessary to rectify the situation and all such actions shall be reported immediately to the Chair and then the Board. 2.3 Resolution of Conflicts The Board retains the power to resolve any conflict or ambiguity regarding the delegation of decision-making authority. The CEO is authorized to resolve any conflict or ambiguity regarding the delegation of the CEO s decision-making powers to OPL staff.
8 CONSEIL DE LA BIBLIOTHÈQUE 3. Delegation of Authority Framework The following table provides a summary of the range of decisions and authority for each decision. Purchasing and Finance Table 1: Delegation of Authority Approval / Decision Board CEOP0F 1. Transfer budget funds to, or from, the City of Ottawa. 2. Set new or modify purchasing and contracting policies. 3. Review and recommend annual Budget Estimates to City Council. 4. Approve general competitive and non-competitive expenditures as per the City of Ottawa Purchasing By- Law No. 50 of 2000 (as amended from time to time) including, but not limited to: Operational expenses Leases 2 $150,000P1F <$150,000 Single or multi-year tenders or contracts (including any contingencies) per vendor Settlement and lawsuit payments Software license agreements 5. Exercise approved spending authority for library materials up to the annual approved operating and capital budgets. 6. Apply for grants and other funding 7. Approve, amend, extend and execute agreements with the federal and provincial governments. 8. Approve, amend, extend and execute service agreements, contribution agreements and grant agreements. 9. Approve additional expenditures for amendments to previously approved projects based on the deviation from 10% <10% the originally approved amount. 10. Sign contracts for projects once required Board approval is obtained. 11. Approve trustee attendance at conferences and conventions 12. Set or change prices for merchandise or services in keeping with the Revenue Generation Framework. 1 Includes the CEO or the CEO s designate 2 Includes GST / HST and other taxes as appropriate 1
9 CONSEIL DE LA BIBLIOTHÈQUE Policies and Plans Approval / Decision Board CEOP0F 3 13. Approve OPL Board policiesp2f P. 14. Approve OPL Strategic Plan. 15. Approve OPL Long Range Financial Plan. 16. Approve strategic frameworks for key OPL services P3F P. P4F 17. Approve strategic frameworks for advocacy, fundraising and major sponsorships. 18. Implement and manage the strategic frameworks for key services, advocacy and fundraising. 5 19. Set or modify administrative and operational policies P. 20. Approve naming rights recommendations. 21. Permanently close branches, modify bookmobile routes or kiosk services. 22. Temporarily close branches in keeping with the branch closure policy, temporarily modify bookmobile routes or temporarily modify kiosk services. 23. Approve sites for new branches, buildings, bookmobile stops or kiosk services. 24. Approve temporary locations for branches or bookmobile stops. 25. Approve architectural designs for new buildings. 26. Approve website designs and modifications. Human Resources 27. Recruit, compensate, dismiss the CEO; monitor and evaluate the performance of the CEO. 28. Set general compensation policies and salary levels for the organization. 29. Set the organizational structure for the organization, including the structure of departments and the number of staff, including Senior Staff. 4 1 3 Policies to support governance will be defined by Board policy. This would include a policy determining CEO reporting requirements as per the delegation of authority. 4 Examples include Revenue Generation, Bookmobile Services, Materials Selection, Technology Roadmap 5 Administrative and operational policies include, but are not limited to: hours of operation, borrowing rules, loan periods.
10 CONSEIL DE LA BIBLIOTHÈQUE Approval / Decision Board CEOP0F 30. Assess the performance of, and set salaries for individual staff. 31. Hire, appoint, promote, suspend, dismiss and manage the 6 performance of individual staffp5f P. 32. Set bargaining mandates. 33. Negotiate collective bargaining contracts. 34. Ratify negotiated collective agreements. 1 Policy Review This policy will be reviewed every four years in the first quarter of the second year of the term of the Board. 6 The CEO shall advise the Board of any hiring and/or dismissal of senior staff (Division Managers)