Council's latest shakeup of city hall should send a clear message as to St. Albert's new focus, according to the mayor: economic development. But two prominent former city officials say this shakeup could also be illegal.
Mayor Nolan Crouse announced four big changes to city hall in a news release Wednesday.
First, community and protective services general manager Chris Jardine is now the city's acting chief administrative officer (CAO), replacing former city manager Bill Holtby, who was fired earlier in the week.
Council will personally lead the search for a permanent CAO, with councillors Cam MacKay and Len Bracko overseeing the contract, Malcolm Parker seeking candidates, and Cathy Heron writing the job description.
Second, council has created a new economic development department that will oversee business development, marketing and economic development. Councillors Parker and Wes Brodhead will write the job description and hire the head of this new department, who will have the position of general manager.
Third, Joan Barber, currently the city's tourism development co-ordinator, is now interim director of the city's business, branding and tourism team.
Last, Jennifer Jennax, the general manager of business and strategic services, is now the interim head of corporate services. She will be also be responsible for rolling out the city's new continuous improvement policy. Council also made other adjustments to city hall's chain of command.
These changes, which take effect today, will be temporary, Crouse says, pending completion of an organizational review next year.
"We wanted to take a stand and send a strong message that the economic development profile is [now] higher," Crouse says. "We've been talking about this for a long time, and it's time for us to put our money where our mouth is."
But this direct intervention into the city's administration could violate the Municipal Government Act (MGA), says former mayor Richard Plain, referring to the law that governs city councils.
"The Municipal Government Act makes it very clear: council is a governing body. Council is not, not, capital N-O-T, involved in the management and administration of the city."
Councillors are not qualified to manage a city, he continues, and were not elected to do so. If council starts viewing itself as an administrator, he warns, "They are on the verge of contravening the [Municipal Government] Act."
Business pumped
Members of the city's business community are pumped up about the city's moves, especially the creation of the Economic Development department.
"It's going to be huge," predicts Gilles Prefontaine, chair of the St. Albert Economic Development Advisory Committee. "It brings the importance of economic development back front and centre."
Making the head of this department a general manager (instead of a director, as it was before) gives business a champion at the planning table with direct access to the CAO, he explains, and could strengthen St. Albert's partnerships with its neighbours.
"It will show that the city of St. Albert views economic development as an important priority — that we're not going to be a sleepy little suburb."
This change is a great idea, agrees Ivan Mayer, president of the Riel Business Park Association, one that should draw more business to town and help the city get to an 80/20 residential/non-residential tax split.
Charlene Zoltenko, chair of the St. Albert Chamber of Commerce, says she hopes the new department will address big-picture issues like housing, transportation, and the need for industrial land. "We can't wait to see what their plan is."
But is it legal?
Sect. 153 of the MGA sets out the duties of councillors, which include the duty to "participate generally in developing and evaluating the policies and programs of the municipality." The CAO, according to sect. 207, "is the administrative head of the municipality" who "ensures that the policies and programs of the municipality are implemented" and "advises and informs council on the operation and affairs of the municipality." The act does not mention any administrative duties for councillors beyond hiring a CAO.
Norbert Van Wyk, who was St. Albert's city manager from 1990 to 1998, says it's "totally inappropriate" for city council to take the hands-on role it has in the city's administration. The MGA says that council sets policy and the CAO implements it through administration, he explains. "There is no crossover."
The CAO is supposed to be accountable for the rest of city hall, he argues, which means the CAO — not council — should be hiring and writing the job description for the new head of economic development.
"How can that new city manager be held accountable if that city manager hasn't hired that particular position?" he asks. "You're handicapping that new city manager the moment he or she walks in the door."
When council steps into management, Van Wyk says, it demoralizes staff and encourages them to look for work elsewhere. "You end up with poor management and end up with poor governance."
It is "foolish" for council to carry out these changes without a permanent CAO in place, Plain says. "We should all be concerned and wake up in the middle of the night wondering what's happening."
The MGA is sort of a best-practices manual for running a city, says Jerry Ward, spokesperson for Alberta Municipal Affairs, and is not directly enforced by the province. Residents who suspect a violation of it can petition council to reverse a decision or take them to court. He would not give a legal opinion on city council's actions.
Crouse says council sought external legal advice and got full approval for these changes. "The reorganization has been done legally and ethically, and we are totally within our rights to do what we've done."
St. Albert's next top manager
Heron says she's gathering opinions as to what traits St. Albert's next CAO should have, and suspects it will take about five months to find a suitable candidate.
St. Albert's next CAO should have plenty of experience, says former city manager Bill Holtby, especially when it comes to human resources, and be able to see the big picture. "[He or she] has to be a visionary, and has to have the strength and conviction to [get through] some of the bumps in the road that occur for any city manager."
Van Wyk says council should also make it clear that it will stick to governance and stay out of that CAO's way. "I would hate to see them have a top-notch city manager and then continue to interfere in the management role of that manager."
