OTTAWA POLICE SERVICES BOARD COMMISSION DE SERVICES POLICIERS D’OTTAWA
	Working together for a safer community La sécurité de notre communauté, un travail d’équipe	REPORT RAPPORT

DATE 18 October 2011

TO/DEST. Chair and Members, Ottawa Police Services Board

FROM/EXP. Board Solicitor

SUBJECT/OBJET RESPONSE TO OUTSTANDING MOTION M-11-01:

REVIEW OF LEGISLATION PERTAINING TO REVENUE GENERATION

RECOMMENDATION

That the Ottawa Police Services Board receive this report for information.

BACKGROUND

During consideration of the Police Services Board’s budget for 2011, questions were raised regarding the Board’s ability to undertake initiatives aimed at raising revenue in support of police operations. The following motion was subsequently passed at the Board’s meeting on May 2, 2011,

That the Chief of Police, in consultation with the Board Solicitor, undertake a review of subsection 391(1.1) of the Municipal Act, 2001 (fees and charges) and the Police Services Act and report back to the Board on the options available to help defray the cost of police services in the City of Ottawa.

This report is intended to provide an overview of the fees and charges provisions of the Municipal Act, 2001, as well as the Police Services Act, with a view to responding to the above motion.

DISCUSSION

The Ottawa Police Services Board (“the Board”), like all other police services boards in Ontario, exists pursuant to, and derives its authority from, the Police Services Act. As a body created by statute, the Board must look to its governing legislative scheme for its powers and responsibilities.

Due to the fact that the Board does not have any inherent power or authority, it may not establish lines of business outside the ambit of its governing statutes. For example, while amendments to the Municipal Act, 2001 have now significantly expanded the authority of municipalities, this extension of natural person powers was not extended to local boards, including police services boards. In the context of exploring options to help defray the costs of police services, the Board must look to the Police Services Act and the Municipal Act, 2001. In terms of funding, the legislative scheme contemplates only two real sources: from the municipality through the ordinary budget process; and from fees and charges imposed under subsection 391(1.1) of the Municipal Act, 2001. That subsection reads as follows:

391 (1.1)  A local board may impose fees or charges on persons,

(a) for services or activities provided or done by or on behalf of it;

(b) for costs payable by it for services or activities provided or done by or on behalf of any municipality or other local board; and

(c) for the use of its property including property under its control.

This subsection gives express authority to the Board to impose fees and charges for services provided by it through the Ottawa Police Service. This seemingly broad authority is not without limits, however; it must read along with the Police Services Act, which establishes the range of services that are to be provided by the Ottawa Police and the Board. Simply put, it is not open to the Board to establish fees and charges for services outside of those normally provided by police.

The range of options available to the Board to help defray policing costs through the adoption of fees and charges is also bounded by the law as it has developed around the term “fees and charges”. In this regard, the courts in Ontario have prescribed limits on what is properly characterized as a fee or charge; so as to not be struck down as being beyond the authority of the Board, the fee or charge must reasonably relate to the cost of providing the service. Therefore, in setting the amount of a fee or charge for a service, consideration must be had to the cost of providing that service, though this may include portions of administrative and other overhead costs that are not necessarily directly related to the particular service.

In light of the above, it is open to the Board to consider imposing fees and charges for the provision of services by the Ottawa Police. Provided that these fees and charges are in relation to what might be termed as typical policing functions (i.e. the provision of accident investigation reports, criminal record checks, etc.) and reasonably reflect the total cost of providing those services, they are permitted pursuant to the Police Services Act and the Municipal Act, 2001.

CONSULTATION

As this report is administrative in nature, no consultation was undertaken.

FINANCIAL STATEMENT

There are no financial implications associated with the receipt of this report.

CONCLUSION

The Ottawa Police Services Board has the authority to implement fees and charges in order to help defray the cost of police services, in accordance with subsection 391(1.1) of the Municipal Act, 2001, provided that the service in relation to which the fee/charge is imposed is one within the authority of the Board. The Board’s adoption of such a fee or charge would be done by by-law, in accordance with the Municipal Act, 2001.

(Original signed by)

D.G. White

Manager, Litigation and Labour Relations