Consolidation of Municipal Services ManagementMinister of Northern Development and Mines, on...

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Consolidation of Municipal Services Management Consolidation Planning Framework: Northern Ontario January 1998 Provincial-Municipal Services Realignment Social and Community Health Services Implementation Project

Transcript of Consolidation of Municipal Services ManagementMinister of Northern Development and Mines, on...

Page 1: Consolidation of Municipal Services ManagementMinister of Northern Development and Mines, on September 2, 1997. Ministers Ecker and Leach sent a subsequent letter on December 18, 1997

CCoonnssoolliiddaattiioonn ooff MMuunniicciippaallSSeerrvviicceess MMaannaaggeemmeenntt

CCoonnssoolliiddaattiioonn PPllaannnniinngg FFrraammeewwoorrkk:: NNoorrtthheerrnn OOnnttaarriiooJJaannuuaarryy 11999988

Provincial-Municipal Services Realignment Social and Community Health ServicesImplementation Project

Page 2: Consolidation of Municipal Services ManagementMinister of Northern Development and Mines, on September 2, 1997. Ministers Ecker and Leach sent a subsequent letter on December 18, 1997

© Queen's Printer for Ontario, 1998ISBN 0-7778-7004-52M/01/98(98-002)

Ce document est disponible en français

Page 3: Consolidation of Municipal Services ManagementMinister of Northern Development and Mines, on September 2, 1997. Ministers Ecker and Leach sent a subsequent letter on December 18, 1997

TABLE OF CONTENTS

I. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

II. OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21. Consolidated Municipal Service Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22. Northern Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23. Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

III. POLICY FOR CONSOLIDATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41. General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42. Consolidation Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43. Provincial Funding for Consolidation Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

IV. DISTRICT SOCIAL SERVICES ADMINISTRATION BOARDS . . . . . . . . . . . . . . 51. General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52. Division of Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

V. AREA SERVICES BOARDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

VI. CONSOLIDATION PROCESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71. Approving Municipal Service Managers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72. Implementation Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73. Designation and Transfer of Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

VII. CONSOLIDATION PLANNING REQUIREMENTS FOR MARCH 31, 1998 . . . 81. Provincial Review and Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82. Information Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93. Where Local Consolidation Proposals Are Not Developed . . . . . . . . . . . . . . . . . . . . 10

VIII. CONSOLIDATION AND ONTARIO WORKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101. Impact of Consolidation on Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102. Consolidation and the Transfer of Sole Support and

Foster Parent Caseloads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113. Technology Implementation and Consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

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IX. CHILD CARE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121. Prior to January 1, 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122. Services Improvement Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123. Cost-Sharing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134. Consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135. Transfer of Responsibility for Managing the Delivery of Child Care Services to

Municipal Service Managers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136. Transition – January 1, 1998 Until Transfer of Responsibility for

Managing the Delivery of Child Care Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147. Child Care Technology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

X. SOCIAL HOUSING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151. Implementation Timetable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152. Potential Municipal Roles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163. Implications for Consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

XI. LAND AMBULANCE SERVICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171. Municipal Roles and Responsibilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172. Consolidation Opportunities for Ambulance Services. . . . . . . . . . . . . . . . . . . . . . . 183. Designation of Areas and Delivery Agents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194. Status of Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

XII. PUBLIC HEALTH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191. Changes in Municipal Role . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192. Governance Structure for Public Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193. Opportunities for Changes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204. Implications for Consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

XIII. NEXT STEPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

APPENDIX 1CONSOLIDATION STATUS - NORTHERN ONTARIO . . . . . . . . . . . . . . 22

APPENDIX 2LEGISLATIVE AUTHORITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

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I. INTRODUCTION

The realignment of provincial and municipal responsibilities announced in January, 1997 createsthe opportunity to build more effective local systems of social and community health services. Municipalities will be assuming responsibility for Ontario Works, child care, social housing, landambulances and public health. There will be many opportunities across these programs tosimplify access to services and serve clients better, while at the same time improvingcost-effectiveness through clearer accountability, better co-ordination, innovation, sharing ofresources, and economies of scale.

Part of the realignment of responsibilities involves creating a system of approximately 50municipal service managers with accountability to the province and local taxpayers for theseservices. The approach to be followed in determining which municipalities and municipalservice boards will be the consolidated service managers was communicated to municipalities byletter from Janet Ecker, Minister of Community and Social Services and Chris Hodgson,Minister of Northern Development and Mines, on September 2, 1997. Ministers Ecker andLeach sent a subsequent letter on December 18, 1997 confirming that the policies will apply tothe municipal management of Ontario Works, child care and social housing.

In Northern Ontario, municipalities and unincorporated areas need to work together to developproposals which will result in about 10 service boards or municipalities accountable to theprovince for management of social and community health services. This framework is intendedto provide additional information on policies and service management options, in order to helpNorthern communities develop consolidation arrangements.

The framework includes:

< Context and legislative authority for consolidation.

< Policy for consolidation in Northern Ontario.

< Outline of the steps in consolidation.

< Consolidation planning requirements for March 31, 1998.

< An overview of program transfer and consolidation considerations for each of OntarioWorks, child care, social housing, land ambulance and public health.

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II. OVERVIEW

1. Consolidated Municipal Service Management

The fundamental role that will be assumed by the municipalities and municipal service boards asa result of consolidation will be management of the system of services within their area. Thesemunicipal service managers will be accountable to the province for management of theseprograms within the policies and standards established by the province.

The municipal services managers will also administer cost-sharing arrangements with theprovince for Ontario Works, the Ontario Disability Support Program, and child care. They willalso administer cost-sharing arrangements between the Federal government and the province forsocial housing. The provincial-municipal arrangements for social housing will be based on aframework of legislation and regulations.

The municipal services managers will be responsible for determining, within provincial policies,the most effective approaches to delivering services to clients in their area. Some deliveryfunctions will be carried out directly by the municipal service manager (e.g., income supportcomponents of Ontario Works) while others may be carried out by the municipal service managerand/or by non-government providers (e.g., land ambulance operation). In some cases, lower-tiermunicipalities may continue to provide delivery even though they are not the municipal servicesmanagers (e.g., municipally operated child care centres).

The decision to consolidate municipal service management does not dictate what the servicedelivery model will be. Each program differs in the delivery options available. It is expectedthat municipal services managers will, however, take advantage of opportunities to rationalizedelivery across programs where it is cost-effective and consistent with provincial policies to doso. For example, there may be opportunities for administrative rationalization of eligibilitydetermination and income verification for Ontario Works, child care and social housing.

2. Northern Context

Consolidation of municipal service management in the north must take into account thechallenges of geography, population distribution, and municipal governance characterized bysingle-tier governments and unincorporated areas.

There have been two models for municipal service management identified for the consolidationof social and community health services in northern communities: District Social ServiceAdministration Boards (DSSABs) and Area Service Boards (ASBs).

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DSSABs will be the model for the initial (and potentially long-term) consolidation of municipalservice management in the north and could evolve into Area Service Boards, should the proposednew enabling legislation be passed. DSSABs are an extension of District WelfareAdministration Boards (DWABs), a model currently in place in six northern districts.

Legislation to create ASBs, a new model of governance and taxation, was introduced in the lastsession of the Legislature. The intent of this legislation, the Northern Services Improvement Act, was to enable municipalities and unincorporated areas in the north to consolidate core social andcommunity health services and a range of optional services. It is planned that the proposedNorthern Services Improvement Act will be re-introduced in the spring of 1998.

3. Principles

In determining the policy and geographic boundaries for consolidation of municipal servicemanagement in Northern Ontario, the following principles were taken into account:

< Consolidated municipal service managers will have clear responsibility to meet provincialpolicies and standards and to be accountable to local taxpayers for the effective managementof Ontario Works, child care and social housing within their service areas.

< Services will be accessible to the public, with service management boundaries that are easilyunderstood, take language and culture into account, and make sense in terms of existingtransportation and communication patterns.

< Service management boundaries will be defined so as to allow for effective strategicplanning, and should be compatible where feasible with the boundaries used for planning andmanagement of other social and health services.

< Where service management areas include unincorporated areas, residents of thosecommunities should have a say in how those services are managed.

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III. POLICY FOR CONSOLIDATION

1. General

In Northern Ontario, there will be about 10 service boards or municipalities managingsocial and community health services.

There are currently 87 municipalities and six District Welfare Administration Boards deliveringOntario Works and/or child care in Northern Ontario that will need to be consolidated to about10 municipal service managers for social and community health services. Municipalities andunincorporated areas in Northern Ontario have the flexibility to choose their own partners andgeographic boundaries for consolidation, as long as about 10 municipal service managers result.

The 10 municipal service managers in Northern Ontario may be DSSABs or municipalitiesmanaging services on behalf of other municipalities.

The DSSAB or municipality must be the municipal service manager for Ontario Works, childcare and social housing.

Where a DSSAB or municipality is the municipal service manager, they will not be required toalso assume management responsibilities for land ambulance services and public health. If themunicipalities and unincorporated areas forming the DSSAB so choose, they may seek theapproval of the Minister of Health and the Minister of Community and Social Services to assumethese additional responsibilities. If they do not choose to do so, arrangements will be developedfor management of land ambulance services in the area by a municipality, and public health willcontinue to be managed by a board of health.

Where, in the future, an ASB is chosen as the service management model, it will also assumeresponsibility for land ambulance services and public health. Assumption of theseresponsibilities may be phased in over time.

2. Consolidation Arrangements

Northern municipalities and unincorporated areas will develop arrangements amongthemselves as to how services will be managed, the boundaries of service managementareas, and what the accountability arrangements will be with the municipal servicemanager.

A major objective of the policy is to provide flexibility for local development of consolidationarrangements, within the policy that there will be about 10 municipal service managers inNorthern Ontario. It is the responsibility of municipalities and unincorporated areas in NorthernOntario to develop mutually acceptable arrangements. The province will approve a consolidationarrangement if it is consistent with the policy and has the support of the municipalities andunincorporated areas involved.

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The delivery arrangements do not have to be identical for each of the programs. For example, aDSSAB may deliver some programs directly and purchase service from a municipality for others. In all cases, however, the same service board or municipality must be accountable to the provincefor municipal service management for Ontario Works, child care and social housing.

In the Regional Municipality of Sudbury, where there is a two-tier municipal system, the upper-tier will be responsible for developing consolidation arrangements. The direct involvement andconsent of the lower-tier municipalities is not required.

In the absence of a locally developed proposal that is consistent with the policy of about 10service boards or municipalities managing social and community health services, the provincewill establish a DSSAB. The province will designate the geographic area to be covered by theboard and the representation arrangements for municipalities and unincorporated areascomprising the board.

3. Provincial Funding for Consolidation Costs

Consolidation should be implemented in as cost effective a way as possible, using existing assetsand taking advantage of opportunities posed by restructuring and local government realignment. Municipalities may apply for funding of essential one-time requirements. Costs will be reviewedfor approval on the same basis as ongoing expenditures to be cost-shared in the administrativebudgets for Ontario Works and child care.

One-time costs associated with consolidation and transfer of service system managementresponsibilities should be addressed in the implementation plans that will be prepared followingapproval of consolidation arrangements.

IV. DISTRICT SOCIAL SERVICES ADMINISTRATION BOARDS

1. General

The DSSAB model is an extension of the DWAB model. Currently District WelfareAdministration Boards (DWABs) are designated by the Minister of Community and SocialServices to administer General Welfare Assistance in parts of Northern Ontario. They manageOntario Works in these areas, and in one case child care.

There are currently six DWABs in Northern Ontario. Municipalities and unincorporatedcommunities in these areas should review and determine their geographic boundaries in order tohave the DWAB become a DSSAB.

DSSABs will have responsibility for municipal service management for Ontario Works, childcare and social housing.

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DSSABs are authorized to provide service and raise revenues from both municipalitiesand unincorporated areas within their geographic area. Their service areas do not have to correspond to the boundaries of Territorial Districts, and will be defined in regulation.

Representation will be specified in regulation, but it is expected that all DSSAB members willconsist of elected representatives of municipalities and representatives of unincorporated areas.

Local consent to form a DSSAB will generally constitute agreement of a majority of localpartners representing a majority of the population in the service area. The partners will beexpected to propose a representation arrangement for provincial approval.

Unlike the proposed legislation for Area Services Boards, the District Social ServicesAdministration Boards Act allows the province to create a DSSAB where local agreement on aservice management model is not reached.

Regulations and detailed policies for DSSABs are being developed by the Ministry ofCommunity and Social Services.

2. Division of Costs

Interim arrangements will be used in 1998 because reassessment will not be complete. Costs willbe apportioned to municipalities based on weighted assessment, but the province will meet thecosts of services provided to residents of unincorporated areas during this transitional year.

Beginning in 1999, costs will be divided among municipalities and residents of unincorporatedareas comprising the DSSAB, on the basis of weighted assessment. If there is unanimousconsent of the DSSAB members, however, another method of dividing costs may be used. In theabsence of such an agreement, weighted assessment will be used.

The method of dividing costs does not have to be the same for all of the five social andcommunity health services.

V. AREA SERVICES BOARDS

Subject to the re-introduction and passage of the proposed Northern Services Improvement Act,ASBs would eventually be responsible for funding and municipal service management for sixcore services (Ontario Works, child care, social housing, land ambulance services, public health,and municipal homes for the aged). They would initially be responsible for the first threeservices, with the responsibility for the other three being phased in later, as appropriate.

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An ASB would have the authority to manage a range of core and optional services. It wouldhave the ability to levy taxes in the service areas, including in unincorporated areas. Boardmembers would be elected representatives of the municipalities and unincorporated areas.

The proposed Northern Services Improvement Act, if re-introduced and passed, would provide athree-year window of opportunity for the voluntary creation of ASBs. DSSAB’s may, if theychoose, become ASBs within that three-year time frame.

Under the proposed Northern Services Improvement Act, ASBs would have the authority to taxmunicipalities and unincorporated areas within their service areas. The details of these revenuearrangements are outlined in the proposed Act and are consistent with the principles of taxationthat apply to municipalities.

During 1998, costs of services within an ASB would be apportioned among municipalities in theservice area on the basis of weighted assessment. The province will meet the costs of servicesprovided to residents of unincorporated areas in this transitional year.

VI. CONSOLIDATION PROCESS

1. Approving Municipal Service Managers

The first step in consolidation is provincial approval of a consolidation arrangement, specifyingthe geographic area for service management. This will allow the municipal service manager tobegin planning for transfer of service management responsibilities from the province.

Formal designation and transfer of authority for the services will take place after implementationplanning has been completed. Existing program delivery arrangements will continue until thisformal transfer of authority takes place. Proposed consolidation arrangements for Northern Ontario are to be submitted by no later thanMarch 31, 1998 for provincial approval. Provincial approvals will be provided as soon aspossible, but no later than May 31, 1998.

2. Implementation Planning

Following approval of consolidation arrangements, the DSSAB or municipality that will be themunicipal service manager will develop an implementation plan addressing the transfer ofservice responsibilities.

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In developing a DSSAB, planning will be required to establish the consolidated organization andthe transfer of service management. Where an existing DWAB becomes a DSSAB, there may beplanning required to extend service to unincorporated areas, as well as to prepare for transfer ofservice responsibilities.

The timetable and provincial requirements for implementation plans will vary for each of the fivesocial and community health programs. For example, implementation planning will proceedmore quickly for Ontario Works and child care than for social housing. An overview of the stepsinvolved is outlined for each program in the Sections VIII to XII of this document.

3. Designation and Transfer of Authority

Authority to act as municipal service manager, and to carry out delivery where appropriate, willbe formally transferred through designation as a “delivery agent” under individual programlegislation. Details will vary by program. For example, designation will be by regulation forOntario Works and child care, but by order of the Minister for land ambulance services. Duringthe interim period while social housing reform and devolution requirements are completed, theonly changes resulting from consolidation will be in responsibility for cost-sharing.

Designation and transfer of authority will be completed after implementation plans have beenapproved by the province and implementation has advanced to the point where the servicemanager is prepared to take legal responsibility for the program. Again, details will vary byprogram and are summarized in the program specific sections below.

VII. CONSOLIDATION PLANNING REQUIREMENTS FOR MARCH 31, 1998

1. Provincial Review and Approval

The consolidation arrangements for Ontario Works, child care and social housing, due by March31, 1998, may be submitted jointly by the municipalities and representatives of unincorporatedareas that are party to the consolidation, or by one of the parties with documentation as to theconsent of the parties.

Consolidation arrangements will be reviewed by the province to assess:

< Whether the proposal is feasible in light of the policy that there be about 10 service boards ormunicipalities managing services in Northern Ontario;

< That the proposed DSSAB is consistent with MCSS policies and guidelines on DSSABs.

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Proposed arrangements will be reviewed by the Ministry of Community and Social Services(MCSS), the Ministry of Municipal Affairs and Housing (MMAH) and the Ministry of NorthernDevelopment and Mines (MNDM). Where consolidation arrangements submitted bymunicipalities include land ambulance and/or public health, the Ministry of Health will alsoreview the proposal. If there are no issues, the municipalities submitting the consolidationarrangement will be advised of approval of the arrangements by letter.

If further information is needed or the arrangements do not appear to be consistent with theconsolidation policy, the party or parties submitting the consolidation arrangement will becontacted by the Provincial-Municipal Services Realignment, Social and Community HealthServices Implementation Project.

2. Information Required

The consolidation plans submitted by Northern Ontario communities must include the followinginformation:

< Name and phone number of a contact person.

< Identification of the municipalities and unincorporated areas that are consolidating and thegeographic area covered.

< Which model of service management is proposed:6 a DSSAB,6 arrangements for a single municipality to manage service.

< Confirmation of community support for the model chosen including municipal councilresolutions and demonstration of consent from unincorporated areas.

< A description of how representation and accountability will be addressed, including how unincorporated areas will be represented.

< A brief description of the service area including:6 population,6 potential client base, 6 accessibility of services,6 provision of services in French and/or other languages where applicable,6 linkages with other providers of social services.

< A list of any other social and community health services that the DSSAB wishes to provide.

< Description of how costs will be apportioned among municipalities and unincorporated areas.

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< Outline of the organizational capacity required to manage the programs and how it will bedeveloped.

< Timetable for establishing the DSSAB.

Municipalities are not required to provide detailed plans for the management and delivery of anyof the programs as part of the consolidation plan. This information will be required as part of theprogram implementation plans to be developed later by the municipal service manager.

3. Where Local Consolidation Proposals Are Not Developed

It is expected that municipalities and unincorporated areas will successfully developconsolidation arrangements that will result in about 10 municipal service managers for social andcommunity health services in Northern Ontario. However, the Social Assistance Reform Act andServices Improvement Act provide the legislative authority for the province to designate servicedelivery areas and delivery agents for Ontario Works and child care, to specify cost-sharingarrangements for social housing, and to create District Social Services Administration Boards.

Where consolidation proposals are not put forward by March 31, 1998, or where theconsolidation proposal received would not allow the objective of about 10 municipal servicemanagers to be achieved, the following steps will be taken:

< MCSS will determine, in consultation with MMAH and MNDM, the geographic boundariesand composition of a DSSAB to manage Ontario Works, child care and social housing.

< The Minister of Community and Social Services will notify the municipalities and residentsof unincorporated areas in the service area as to its plans to create a DSSAB.

< Provincial decisions will be made as soon as possible after March 31, 1998, but in all casesby May 31, 1998.

< Regulations will be made under the District Social Services Administration Boards Act toestablish the DSSAB.

< The DSSAB be asked to develop implementation plans.

VIII. CONSOLIDATION AND ONTARIO WORKS

1. Impact of Consolidation on Ontario Works Implementation

By early 1998, Ontario Works will be implemented in municipalities across the province. Program implementation will continue. Consolidated municipal service managers will not takeon service management responsibilities for Ontario Works until such time as they are designatedby regulation under the proposed Ontario Works Act and MCSS formally transfers authority.

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Even though the Ontario Works business planning process has resulted in a reduced number ofdelivery agents for Ontario Works, consolidation to approximately 50 delivery agents will berequired. For example, In Northern Ontario there are currently 18 approved or soon to beapproved Ontario Works delivery agents. However it has been determined that there will be nomore than about 10 service boards or municipalities delivering Ontario Works in NorthernOntario. Northern Ontario municipalities will participate in the larger service consolidationprocess to meet the requirements of the consolidation policy.

In addition, many consolidated municipalities will need to plan for the full integration offinancial and employment assistance and all consolidated delivery agents will be required to planfor the transfer of sole support and foster parent cases to the Ontario Works program.

Guidelines will be provided by MCSS early in 1998 to assist municipalities in the revision of aservice contract as a result of consolidation.

2. Consolidation and the Transfer of Sole Support and Foster Parent Caseloads

Planning for the proposed transfer of sole support and foster parent cases from the provincialFamily Benefits program to the municipally delivered Ontario Works program is under way. Early in 1998, MCSS will provide a comprehensive tool kit to support an effective planningprocess and help ensure that the transfer is managed smoothly and without disruption.

The timing for the transfer of cases from the provincial system to Ontario Works will dependupon:

< Approval as the municipal service manager< Joint local planning efforts which includes a human resources plan< An approved implementation plan< Municipal readiness to assume legal responsibility< Designation and transfer of authority under the legislation

The goal is that full implementation of the initiative and a complete transfer of cases tomunicipalities approved as the consolidated municipal service managers for Ontario Works willoccur by 1999.

3. Technology Implementation and Consolidation

In most of the areas with consolidation requirements, there exists at least one delivery site that isa current CIMS/CWT site. This hardware will be relocated, if necessary, to the designatedmunicipal service manager to provide the technical infrastructure for the delivery of OntarioWorks. Hardware installation and connectivity will be assessed as part of the implementationprocess. The ministry will ensure that implementation is consistent with existing ASAPimplementation guidelines, and Ontario Works staff are trained to use the technology.

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Implementation to accommodate consolidation will also include sole support and foster parentcase requirements for automation to ensure that there is only one retrofit and installation process.

As part of the objective of developing a common technology infrastructure to support thedelivery of social assistance, the ministry will negotiate CIMS/CWT implementation in thoseareas where there are no existing CIMS/CWT sites. It is the ministry’s goal to have thetechnology foundation for the future in place by the end of 1998.

Technology guidelines for the delivery of Ontario Works will be available in January 1998. Theguidelines will include information regarding the technology, cost-sharing and ministryimplementation requirements.

IX. CHILD CARE

1. Prior to January 1, 1998

Prior to January 1, 1998, municipal involvement in child care has been discretionary. Wheremunicipalities chose to participate, they cost-shared fee subsidies only (province paid 80% ofcost and municipalities paid 20%). Ninety-four municipalities currently cost-share fee subsidieswith the province.

Where there were gaps in service, MCSS entered into agreements with “approved corporations”to deliver fee subsidies (the province pays 80% and the approved corporations pay 20% throughparent fees, fundraising, etc.). There are currently 92 approved corporations delivering feesubsidies in Ontario.

MCSS has entered into agreements with service providers to deliver all other child care servicesthroughout the province (resource centres, special needs resourcing, wage subsidy). Prior toJanuary 1, 1998, these services are funded 100% by the province.

2. Services Improvement Act

Child care is an important support for working parents to maintain employment as well as acritical support to the success of Ontario Works. In order to make the services more efficient,responsive to local needs, and accountable to taxpayers, the province made a series of decisionsfor local government realignment. Schedule C of the Services Improvement Act amends the DayNurseries Act (DNA) in order to implement the child care portion of these decisions (seeAppendix 2).

Responsibility for licensing will not be transferred to municipalities at this time.

The current child care standards specified in the Day Nurseries Act will be maintained.

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3. Cost-Sharing

Under the Services Improvement Act, municipal cost-sharing of prescribed child care services(i.e., fee subsidies, wage subsidies, special needs resourcing, resource centres) are mandatory.

All prescribed child care services are cost-shared on an 80/20 basis between the province andmunicipalities.

This improves accessibility to child care across the province and improves the stability of thesystem, since municipal participation in child care has been discretionary and mainly limited tocost-sharing and delivery of fee subsidies.

4. Consolidation

The Services Improvement Act provides authority for the Minister of Community and SocialServices to designate municipalities or DSSABs to manage the delivery of prescribed child careservices for all municipalities and for unincorporated areas within its boundaries.

The process for becoming an approved municipal service manager is described earlier in thisdocument.

5. Transfer of Responsibility for Managing the Delivery of Child Care Services toMunicipal Service Managers

Before municipal service managers can be designated, and authority for managing the delivery ofchild care services can be transferred, approved municipal service managers must complete a“Plan for the Transfer of Responsibility for Managing the Delivery of Child Care Services”. Theplan, which will be developed jointly between the municipal service managers and MCSS AreaOffices, will describe how the transfer of responsibility for the delivery of child care servicesfrom the province and existing municipal service delivery agents will occur. In areas withconsolidation requirements, the plan will also describe how the consolidation of authority tomanage and deliver child care will occur.

The transfer plan must be submitted to MCSS Area Offices no later than August 31, 1998;however, some municipal service managers, particularly those without consolidationrequirements, will be in the position to submit plans earlier than that date. Early submissions areencouraged.

MCSS will be releasing guidelines for the child care transfer plan in early 1998. Input on theseguidelines has been received from a child care provincial/municipal implementation group whichmet in the fall of 1997, and will continue to meet in 1998 to discuss service planning.

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Upon approval of the transfer plan, municipal service managers will be designated, and MCSSwill enter into a service contract with the designated municipal service manager. Once thedelivery agent is designated and the service contract is signed, the transfer of authority will takeplace. The transfer of authority for Ontario Works and child care may occur at different times,depending on the readiness of the municipality to assume responsibility for each program. Thiswould be specified in the service contract.

6. Transition – January 1, 1998 Until Transfer of Responsibility for Managing theDelivery of Child Care Services

The transfer of child care responsibilities will occur at different times across the provincedepending on municipal readiness and consolidation requirements.

Between January 1, 1998 and the time that authority is transferred, child care will be managed inthe same way that it is managed now. The most significant change will be thatprovincial/municipal cost-sharing will be broadened:

< The 94 participating municipalities will continue to manage their fee subsidy systems. Existing contracts for fee subsidies between MCSS and the 94 participating municipalitieswill be maintained.

< Where municipalities do not participate in child care, MCSS will maintain agreements with92 approved corporations to manage and deliver fee subsidies.

< MCSS will maintain agreements with existing service providers throughout the province forall other child care services (resource centres, special needs resourcing and wage subsidy).

< There will be 80/20 cost-sharing on all child care services with the exception of approvedcorporations where those agencies will maintain their 20% contributions.

< Municipalities and the province will maintain existing service levels.

< The child care system will be managed within provincial and local child care policies andstandards.

7. Child Care Technology

In the context of realignment of municipal and provincial responsibilities, MCSS is in theprocess of examining management information needs. A steering committee worked with MCSSstaff to produce a strategic plan for the development of a child care management informationsystem. Work included discussions with some municipalities regarding their existing municipalinformation systems.

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The recommendations of the report have provided MCSS with a number of options to consider indeciding on the scope of a future child care management information system. For example:

< The possibility of automating municipal functions such as managing contracts with serviceproviders and eligibility testing (as well as licensing at a future date).

< The possibility of modifying existing municipal systems to include a standard set of dataelements.

< Software to extract standard data from municipal systems to a provincial database.

< Linkages to the social assistance Business Transformation Project.

< The possibility of automating functions where they are not already automated (e.g., smallermunicipalities).

There is a significant amount of work to be completed before any new system would be ready. Inthe interim, existing information systems will continue to be used.

X. SOCIAL HOUSING

1. Implementation Timetable

The devolution of social housing will be phased in three stages.

First stage:< A billing process is introduced to charge municipalities for provincial costs of social housing

commencing January 1, 1998.

< Except for the change in cost-sharing, the roles and responsibilities of the province,municipalities and housing providers will remain substantially the same.

Second stage:< Social housing programs will be reformed to simplify administration before they are

transferred to municipalities. This will require legislation.

< On October 20, 1997, the Minister of Municipal Affairs and Housing announced that heaccepted in principle the report of the Advisory Council on Social Housing Reform, whichproposed reforms to the financing, administration and regulation of social housing in theprovince.

< The Ministry of Municipal Affairs and Housing has established a Social Housing Committeeand three Working Groups to involve municipalities, sector organizations and otherstakeholders in the design of program delivery and reform initiatives.

< A separate consultation process on supportive housing will be undertaken.

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Third stage:< Administrative responsibility will be devolved to municipalities following passage of

proposed legislation, program reform and development of municipal capacity. This isanticipated to take place from late 1998 to 2000.

2. Potential Municipal Roles

Local delivery models for social housing will follow the current reform process. As a follow-upto the recommendations of the Social Housing Advisory Council, the Social Housing Committeeand Working Groups set up by the Ministry of Municipal Affairs and Housing will explorestrategies for the administration of social housing by municipalities.

Potential municipal roles that will be considered include:

< Designing the administrative system for social housing, including client access.

< Dealing with housing providers for budgets, operations, and reporting.

< Ensuring that income verification processes, rent calculations, eligibility determination andaccess systems meet provincial requirements.

< Monitoring providers and reporting to the province on compliance with federal principles andprovincial standards.

< Participating in mortgage default management, and bench-marking processes.

Municipalities may have discretionary authority for:

< Creating the organizational structure to oversee housing operations.

< Achieving administrative efficiencies, possibly through greater integration of administrativefunctions with other income support programs, i.e., Ontario Works, child care and throughuse of benchmarked costs.

< Managing the rent supplement contracts with housing providers.

< Taking remedial action to help housing providers meet provincial requirements and localagreements.

Prior to devolution, the province will establish provincial standards to:- specify roles and responsibilities,- determine levels of service, access requirements, eligibility, benefit levels, - set the accountability framework for monitoring and reporting.

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The province will also, prior to devolution, make initial determination of market rents and bench-marking of operation costs, in consultation with municipalities.

After devolution, the province will primarily be responsible for:- provincial standards,- transfer of federal monies and reporting to CMHC,- monitoring compliance with federal and provincial standards,- managing the contingent liability.

3. Implications for Consolidation

Municipal service management responsibilities will be carried out by the same municipal servicemanagers that will be responsible for Ontario Works and child care. How this consolidation willbe implemented, and the extent of integration with these other programs, will be examined by theprovince and municipalities as service delivery models for social housing are developed.

The Advisory Council on Social Housing Reform recommended that municipalities haveflexibility, within certain parameters to be established by the province, to determine the mosteffective way to structure the social housing system in order to respond to local needs andpriorities.

There are approximately 70,000 social assistance recipients who live in RGI (rent geared toincome) social housing units and they comprise one-third of the RGI households in socialhousing. For reasons of service coordination and administrative efficiency, municipalities maychoose to rationalize delivery of the “income support” functions of social housing with OntarioWorks and child care delivery at the local level.

XI. LAND AMBULANCE SERVICES

1. Municipal Roles and Responsibilities

January 1, 1998:

< Municipalities will become responsible for the funding of land ambulance services

< A two-year transition period will allow current service providers and municipalities toprepare for the full transfer of responsibility from the province to municipalities.

< During this period, the delivery of services will continue to be a responsibility of the provincein northern Ontario.

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< The possible exception is the regional municipality of Sudbury which, as an upper-tiermunicipality, may assume responsibility at any time prior to January 1, 2000, subject to theapproval of the Ministry of Health.

< Where the Ministry of Health is providing program management, service contracts withcurrent operators will be managed by the Ministry (i.e., payment of operators, provision ofvehicles and equipment) the province in turn will recover the cost of the services frommunicipalities.

< Where an upper-tier municipality assumes early responsibility for the delivery of landambulance service this also includes provision of funding as well as vehicles and equipment.

September 30, 1999:

< Municipalities and potentially Area Service Boards must declare to the Ministry of Healththeir choice of service operator in preparation for the assumption of full serviceresponsibility.

< The municipal service manager has the option to become the service provider, continue withthe existing provider, or conduct a highest quality best price proposal call.

January 1, 2000:

< Municipal service managers become responsible for all aspects of the funding and ensuringthe delivery of the service including the provision of vehicles and equipment.

2. Consolidation Opportunities for Ambulance Services

Ambulance services share some common attributes with both health care and emergencyservices. There will continue to be a natural relationship with health care facilities andprofessionals and with police and fire agencies.

Land ambulance shares some common, and some operational features, with each:

Emergency services: Need to be available around the clock; quick response to an emergency ispredicated upon a rapid response network and a high quality, wide areacommunication system.

Health facilities: People oriented, focused on illness and injury, related to services of healthcare facilities and staff; require integration with medical controlframework.

Most operational functions in the delivery of land ambulance services are distinct from theoperations of other emergency and health services.

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Some administrative functions such as human resources, purchasing services, maintenance ofvehicles and equipment may be consolidated, simplified or shared with other emergency servicesor other health and social services.

3. Designation of Areas and Delivery Agents

In Northern Ontario, the Ministry of Health will continue to be the designated agent for landambulance service delivery until such time as there are ASBs or other area-wide arrangementsfor these services in place. Cost for ambulance services will be apportioned among the localmunicipalities.

4. Status of Implementation

A Land Ambulance Transition Team is currently reviewing proposed new regulations andtransfer issues. The Ministry of Health is currently developing transfer criteria for landambulance services and related information.

XII. PUBLIC HEALTH

1. Changes in Municipal Role

Public health is 100% funded by municipalities as of January 1, 1998 (with the exception of the“Healthy Babies, Healthy Children” program and vaccines, which will continue to be 100%provincially funded).

Boards of health, which are now funded by municipalities, will be required to continue to meetprovince-wide public health standards. The existing guidelines have been revised and are beingmade available to municipalities.

Municipalities have discretion to provide programs or levels of service above the provincialstandards.

2. Governance Structure for Public Health

Public health is governed by boards of health, with the majority of members being municipalappointees.

Within regional municipalities, Regional Council acts as the board of health.

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3. Opportunities for Changes

The Services Improvement Act allows:

< With approval of the Minister of Health, additional entities (such as county councils) tobecome boards of health through regulation changes. Municipalities would be required tomake a proposal to the ministry demonstrating how the proposed board would maintainpublic health standards.

< The executive officer function to be assumed by someone other than the Medical Officer ofHealth and for the administration and business affairs of the board to not be under thedirection of the medical officer. This allows opportunity for consolidation to achieveadministrative efficiencies.

However, staff delivering public health programs under the Health Protection and PromotionAct, or other Acts, must be under the direction of the medical officer, and the medical officermaintains responsibility for the management of public health programs and services.

4. Implications for Consolidation

There will be 37 boards of health delivering public health programs throughout Ontario,following the City of Toronto amalgamation.

Unlike other programs being transferred to municipalities, public health is already consolidatedinto fewer organizations than the approximately 50 delivery agents required by the consolidationpolicy. In fact, even further consolidation of some smaller boards would create more efficientpublic health organizations.

The province will consider suggestions on the best organizational models to suit local servicedelivery. It is possible that different structures would be more cost-effective if a range of socialand health services are to be combined at the municipal level.

Considerations in developing consolidation arrangements with regard to public health are:

< The first step in implementation of consolidated municipal services management focuses onOntario Works, child care and social housing to reduce the number of delivery organizationsfor these two programs. This consolidation will provide a basis for exploring furtherintegration of services, including public health.

< If public health is to be included in a consolidation, consideration would have to be given tothe impact of breaking up a public health unit into smaller units. Consolidation arrangementswould need to demonstrate that programs would be delivered more efficiently and effectivelythan under current arrangements.

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XIII. NEXT STEPS

This consolidation framework has provided municipalities with the information they require todevelop consolidation arrangements for Ontario Works, child care, and social housing. Information to assist municipalities to consider further consolidation of land ambulance andpublic health has also been provided.

Municipalities seeking further clarification of the consolidation policy or process, are invited tocontact Katherine Willson of the Provincial-Municipal Services Realignment, Social andCommunity Health Services Implementation Project:

Telephone: (416) 325-5358Fax: (416) 325-5423E-Mail: [email protected]

Municipalities seeking additional information about Areas Services Boards are invited to contactMr. Aimé Dimatteo at the Ministry of Northern Development and Mines.

Telephone: (705) 670-7315Fax: (705) 670-7313

Proposed consolidation arrangements should be submitted to:

Mr. Barry WhalenAssistant Deputy MinisterProvincial-Municipal Services RealignmentSocial and Community Health Services Implementation ProjectMinistry of Community & Social Services56 Wellesley Street West, 12th FloorToronto, Ontario M7A 1E9

Fax: (416) 325-5423Phone: (416) 325-5344

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Appendix 1

Northern OntarioManagement of Ontario Works and Child Care

Ontario Works(as of January 1, 1998)

Child Care(as of January 1, 1998)

Geographic District or UpperTier Municipality

Algoma DWABSault Ste. Marie C Sault Ste. Marie C

Elliot Lake C

Algoma District

Cochrane DWABTimmins C Timmins C

Cochrane THearst TKapuskasing T

Cochrane District

Dryden CKeewatin TKenora TSioux Lookout TJaffray Melick TIgnace TWPMachin TWPRed Lake TWPEar Falls TWPPickle Lake TWPGolden TWPSioux Narrows TWP

Dryden C

Kenora TSioux Lookout T

Red Lake TWPEar Falls TWP

Golden TWP

Kenora District

Gore Bay TNortheastern Manitoulin TAssiginack TWPBarrie Island TWPBillings TWPBurpee & Mills TWPCarnarvon TWPGordon TWPRutherford & George Island TWPSandfield TWPTehkummah TWP

Manitoulin District

Nipissing DWABNorth Bay C North Bay C

Mattawa T

Nipissing District

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Ontario Works(as of January 1, 1998)

Child Care(as of January 1, 1998)

Geographic District or UpperTier Municipality

Parry Sound DWAB Parry Sound DWAB Parry Sound District

Rainy River DWABFort Frances TAtikokan TWP

Rainy River District

Sudbury DWAB Espanola T Sudbury District

Sudbury RM Regional Municipality ofSudbury

Thunder Bay CGeraldton TMarathon TLonglac TBeardmore TWPConmee TWPDorion TWPGillies TWPNakina TWPNeebing TWPNipigon TWPO’Connor TWPOliver & Paipoonge TWPShuniah MTerrace Bay TWP & Schreiber TWPManitouwadge TWPRed Rock TWP

Thunder Bay CGeraldton T

Longlac T

Thunder Bay District

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Ontario Works(as of January 1, 1998)

Child Care(as of January 1, 1998)

Geographic District or UpperTier Municipality

Charlton TCobalt TEnglehart THaileybury T Kirkland Lake TLatchford TNew Liskeard TThornloe VArmstrong TWPBrethour TWPCasey TWPChamberlain TWPColeman TWPDack TWPDymond TWPEvanturel TWPHarley TWPHarris TWPHilliard TWPHudson TWPJames TWPKerns TWPLarder Lake TWPMcGarry TWPGauthier TWPMatachewan TWP

Haileybury TKirkland Lake T

New Liskeard T

Armstrong TWP

Timiskaming District

Abbreviations: C CityDM District MunicipalityDWAB District Welfare Administration Board M MunicipalityRM Regional MunicipalityTWP TownshipT TownV Village

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Appendix 2

LEGISLATIVE AUTHORITY

1. Social Assistance Reform Act

Schedule A of the Social Assistance Reform Act is the Ontario Works Act. When proclaimed,Part III of the Ontario Works Act will:

< Require the Minister of Community and Social Services to designate geographic areas byregulation for the purposes of administering Ontario Works (Section 37).

< Allow the Minister to designate by regulation a municipality, band or prescribed board as adelivery agent for a designated geographic area (Section 38).

< Require that prescribed costs be shared by the province, municipalities and residents ofterritory without municipal organization in accordance with the regulations (Section 51).

< Require that, where geographic areas include more than one municipality, the municipalshare of costs will be divided among the municipalities in accordance with regulations(Section 53 (1)).

< Allow the province to recover costs from residents of territory without municipalorganization as part of the Provincial Land Tax (Section 55).

< Allow the Lieutenant Governor in Council to make regulations as to how costs are to beshared among the province, municipalities and residents of territory without municipalorganization (Section 74 (1) 35).

< Allow the Lieutenant Governor in Council to make regulations respecting the division ofcosts among municipalities in a designated geographic area (Section 74 (1) 38).

< Allow the Minister to make regulations designating geographic areas and delivery agents (Section 74 (2) 2).

< Regulations for division of costs may do one or more of the following:

- authorize the municipalities in a geographic area to reach agreement on dividing costs;

- provide for an arbitration process to determine division of costs;

- set out a method for dividing costs (Section 74 (7)).

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< Regulations may also provide for an interim method of dividing costs, permit an agreementor arbitration decision to apply retroactively, and provide for reconciliation of amounts paidon an interim basis (Section 74 (8)).

Schedules C and D include amendments to the District Welfare Administration Boards Act.When proclaimed, the amendments will:

< Change the name of existing boards from DWABs to DSSABs.

< Change the definition of district to a geographic area designated by the Minister ofCommunity and Social Services (Section 1 (1)).

< Amend the definition of welfare services to social services that are prescribed by regulations(Section 1 (1)).

< Require regulations to be made by the Lieutenant Governor in Council to designategeographic areas for the purpose of the Act (Section 2).

< Allow the Minister to establish district social services administration boards (Section 3 (1)).

< Allow the Minister to designate district social services administration boards as deliveryagents for Ontario Works, and require them to carry out any responsibilities specified byregulation in this or any other Act (Schedule C, Section 4).

< Provide for expenditures for social services to be apportioned among municipalities in thedefined district in accordance with regulations (Schedule C, Section 6).

< Where territory without municipal organization is included in the defined district, requireapportionment of costs among municipalities and territory without municipal organization inaccordance with the regulations (Schedule C, Section 7).

< Allow the province to recover costs apportioned to territory without municipal organizationas part of the Provincial Land Tax (Schedule C, Section 8 (2)).

< Change the title of the Act to the District Social Services Administration Boards Act.

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2. Services Improvement Act

The Services Improvement Act is amending legislation that allows for changes in a number ofprograms affected by the realignment of provincial-municipal services. Provisions that arerelevant to consolidation are included for child care, social housing, land ambulances and publichealth.

Schedule A amends the Ambulance Act to specify the responsibilities of municipalities for landambulance services:

< Part III, Section 6(1), provides that upper-tier municipalities will be responsible for costs ofland ambulance services, and for ensuring provision of land ambulance services on January1, 2000 (or earlier if provided for by regulation).

< Part III, Section 6 (3), allows upper-tier and separated municipalities to enter intoagreements regarding costs associated with ambulance services provided across theirboundaries.

< Part IV, Section 6.7, addresses areas that do not form part of an upper-tier municipality, andallows the Minister of Health to designate by order a municipality or an agency, board orcommission established by the province as a delivery agent, and to designate the geographicarea for which the delivery agent is responsible.

< Part IV, Section 6.9 (2) provides that costs within a designated service delivery area will bedivided among the local municipalities in accordance with the regulations.

< Part IV, Section 6.9 (3) + (7) provides that costs within a designated service delivery areawill be divided among the local municipalities and residents of any territory withoutmunicipal organization that is included, in accordance with the regulations, and that costs inareas without municipal organization may be collected by the province as part of theProvincial Land Tax.

< Part VI, Section 22.0.1 provides the Minister with powers to make regulations governing thedivision of costs among municipalities in different circumstances.

< Regulations for division of costs may do one or more of the following:

- authorize the municipalities in a geographic area to reach agreement on dividing costs;

- provide for an arbitration process to determine division of costs;

- set out a method for dividing costs (Subsection 22 (2.1)).

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< Regulations may also provide for an interim method of dividing costs, permit an agreementor arbitration decision to apply retroactively, and provide for reconciliation of amounts paidon an interim basis (Subsection 22 (2.4)).

Schedule C addresses child care through amendments to the Day Nurseries Act. Theamendments will:

< Require the Minister of Community and Social Services to designate geographic areas byregulation for the purposes of administering child care (Section 2.1).

< Allow the Minister by regulation to designate a municipality, band or prescribed board as adelivery agent for each geographic area (Section 2.2 (1)).

< Require that prescribed costs be shared by the province, municipalities and residents orterritory without municipal organization in accordance with regulations (Section 7.3 (1)).

< Require that, where a geographic area includes more than one municipality, the municipalshare of the delivery agent’s costs are divided among the municipalities in accordance withregulations (Section 7.5).

< Allow recovery of costs in territory without municipal organization through the ProvincialLand Tax (Section 7.7).

< Allow the Lieutenant Governor in Council to make regulations respecting the division ofcosts among municipalities and residents of territory without municipal organization in adesignated geographic area (Section 18 (l.1)).

< Allow the Minister to make regulations designating geographic areas and delivery agents (Section 18 (2) (b)).

< Regulations for division of costs may do one or more of the following:

- authorize the municipalities in a geographic area to reach agreement on dividing costs;

- provide for an arbitration process to determine division of costs;

- set out a method for dividing costs (Section 18 (3)).

< Regulations may also provide for an interim method of dividing costs, permit an agreementor arbitration decision to apply retroactively, and provide for reconciliation of amounts paidon an interim basis (Section 18 (4)).

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Schedule D amends the Health Protection and Promotion Act with respect to the following:

< The definition of a board of health is expanded to include an agency, board or organizationprescribed by regulation (Section 1(1) (d)).

< Division of costs among upper- and single-tier municipalities in a health unit will be asagreed among them. If they fail to reach agreement on division of costs, each will pay theirshare of municipal costs in accordance with regulations (Section 72 (3) (4)).

< Regulations may be made to provide for payment by residents of territory without municipalorganization and to allow collection of these amounts by the province through the ProvincialLand Tax (Section 96 (5.1) (d)).

Schedule F creates a Social Housing Funding Act 1997. This Act addresses interimarrangements for municipalities to pay costs of social housing administered by the province. Itallows the Minister of Municipal Affairs and Housing to allocate costs among upper- and single-tier municipalities, and to specified social service boards. It also allows costs to be allocated toterritory without municipal organization and to be collected by the province in these areasthrough the Provincial Land Tax.

Legislation governing other aspects of municipal responsibilities for social housing will beprepared following the current reform process.

3. Proposed Northern Services Improvement Act, If Re-Introduced and Passed

The Ministry of Northern Development and Mines’ proposed Northern Services ImprovementAct, if re-introduced and passed, would:

< Allow for the creation of Area Services Boards in Northern Ontario, that would be requiredto manage core services including Ontario Works, child care, land ambulance, public health,social housing and municipal homes for the aged.

< Allow for phase-in of Area Services Board responsibility for these core services.

< Allow Area Services Boards the option of providing other services, including economicdevelopment, municipal airports, waste management, policing, land use planning,emergency planning and preparedness, provincial offences, and roads and bridges.

< Provide the Area Services Board with taxation authority within its boundaries (which mayinclude municipalities and unincorporated areas).