Item - 2012.EX16.5
Tracking Status
- City Council adopted this item on March 5, 2012 without amendments and without debate.
- This item was considered by the Executive Committee on February 13, 2012 and adopted without amendment. It will be considered by City Council on March 5, 2012.
EX16.5 - Indemnification of City Council Members Serving on External Boards without City Approval
- Decision Type:
- ACTION
- Status:
- Adopted on Consent
- Wards:
- All
City Council Decision
City Council on March 5 and 6, 2012, adopted the following:
1. City Council Members, in considering whether to accept a membership on the board of an external body for which the City does not approve the appointment, or in continuing to participate as a board Member with such bodies, follow the protocol in Attachment A of the report (January 30, 2012) from the City Manager.
2. City Council request the City Clerk to canvass City Council Members to declare which external boards they sit on as representative of their constituents where they were not appointed by City Council and report the results of the declaration to the Executive Committee, and update the declaration annually.
3. Based on the declaration, City Council request the Chief Financial Officer and Deputy City Manager to inform the City's insurer of the appointments to the external not-for-profit boards listed in the declaration so that the City’s liability insurance in the amount of a maximum of $5 million dollars per occurrence may be extended to the affected City Council Members.
4. Should a City Council Member desire compensation for legal expenses or damages incurred as a result of their membership on the board of an external body where the City has not appointed them, and the external body’s or the City's insurance has denied their claim in full or in part, the Council Member may seek reimbursement pursuant to Section (2) of the City's Indemnification Policy for City Council Members.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2012/ex/bgrd/backgroundfile-44979.pdf
EX16.5 - Indemnification of City Council Members Serving on External Boards without City Approval
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Committee Recommendations
The Execuive Committee recommends that:
1. City Council members, in considering whether to accept a membership on the board of an external body for which the City does not approve the appointment, or in continuing to participate as a board member with such bodies, follow the protocol in Attachment A of the report (January 30, 2012) from the City Manager.
2. City Council request the City Clerk to canvass City Council members to declare which external boards they sit on as representative of their constituents where they were not appointed by City Council and report the results of the declaration to the Executive Committee, and update the declaration annually.
3. Based on the declaration, City Council request the Chief Financial Officer and Deputy City Manager to inform the City's insurer of the appointments to the external not-for-profit boards listed in the declaration so that the City’s liability insurance in the amount of a maximum of $5 million dollars per occurrence may be extended to the affected City Council members.
4. Should a City Council member desire compensation for legal expenses or damages incurred as a result of their membership on the board of an external body where the City has not appointed them, and the external body’s or the City's insurance has denied their claim in full or in part, the Council member may seek reimbursement pursuant to Section (2) of the City's Indemnification Policy for City Council members.
Origin
Summary
This report recommends a protocol regarding indemnification of City Council members who sit on the boards of external bodies where there has been no appointment approved by the City. The protocol requires Council members to conduct due diligence before serving on an external board as part of their role as a Council member, including determining whether the external body has its own Director's Liability Insurance in place. In addition, any claims arising through Council members serving in a board member capacity must first be pursued through the insurance coverage of the external body.
This report has been prepared in consultation with the City Solicitor, the Chief Financial Officer and Deputy City Manager, and the City Clerk.
Background Information
https://www.toronto.ca/legdocs/mmis/2012/ex/bgrd/backgroundfile-44979.pdf