Halifax Regional Municipality
2013/14 Annual Business Unit Budget (Approved)
Legal, Insurance and Risk Management Services
Legal, Insurance and Risk
Management Services
2013/14
Budget and Business Plan
Mission:
To provide Halifax Regional Municipality with quality, cost effective, timely
and accessible legal, insurance and risk management services for all facets
of its operations across the organization.
Halifax Regional Municipality
2013/14 Business Plans and Budget (Approved)
Legal, Insurance and Risk Management Services
Legal, Insurance and Risk Management Services Overview
This business unit has two sections - Legal Services and Risk and Insurance Services which together
provide support to HRM initiatives and operations.
•
Legal Services supports Regional Council, its boards, commissions, committees and the business
units, to provide legal services including all litigation, contract drafting and review, By-law
development and reform, property transactions, prosecution of municipal By-laws and provincial
regulatory offences, and general advice. (When final hires are made, will consist of 18 lawyers
and 10 staff = 28 FTE)
•
Risk and Insurance Services is responsible for the management, investigation and resolution of
any insurance claim brought against or made on behalf of HRM, the application of sound risk
management processes to identify, analyze, mitigate, respond to or avoid exposures, claims or
other risks to HRM and the public and are responsible for the acquisition and maintenance of
insurance coverage for Mayor, Council, Municipal operations, property, assets, Boards,
Commissions or others for whom HRM is contractually obligated to respond to or provide
insurance for. (4.5 FTE)
Legal, Insurance and Risk Management Services Org Chart
Director of Legal and Risk
Management
Legal Administrative
Coordinator & Assistant to
the Director
Legal Assistants
Manager of Risk and
Insurance
Civil Litigation
Senior
Senior Claims
Claims Examiner
Examiner
General
General Counsel
Counsel &
&
Team
Team Lead
Lead
Senior
Senior Risk
Risk &
& Insurance
Insurance
Analyst
Analyst
Senior
Senior Solicitor
Solicitor
Claims
Claims &
& Risk
Risk Analyst
Analyst
Senior
Senior Solicitor
Solicitor
Administrative
Administrative Assistant
Assistant
(.5)
(.5)
Senior
Senior Solicitor
Solicitor
Solicitor Services
Senior
Senior Solicitor
Solicitor &
&
Team
Team Lead
Lead
Senior
Senior Solicitor
Solicitor &
&
Conveyancing
Conveyancing Lawyer
Lawyer
Senior
Senior Solicitor
Solicitor
Senior
Senior Solicitor
Solicitor
Solicitor
Solicitor
Solicitor
Solicitor
Legal
Legal Assistant
Assistant
Legal
Legal Assistant
Assistant
Senior
Senior Solicitor
Solicitor
Solicitor
Solicitor
Prosecutions
Senior
Senior Solicitor
Solicitor &
&
Team
Team Lead
Lead
Solicitor
Solicitor
Prosecutions
Prosecutions Coordinator
Coordinator
Legal
Legal Assistant
Assistant
Legal
Legal Assistant
Assistant
Solicitor
Solicitor
Solicitor
Solicitor
Solicitor
Solicitor
10 per diem Crowns
Real
Real Estate
Estate &
& Conveyancing
Conveyancing
Paralegal
Paralegal (to
(to report
report to
to
Conveyancing
Conveyancing Lawyer)
Lawyer)
Legal
Legal Assistant
Assistant
Legal
Legal Assistant
Assistant
Legal
Legal Assistant
Assistant (to
(to be
be
hired)
hired)
M2
Halifax Regional Municipality
2013/14 Business Plans and Budget (Approved)
Legal, Insurance and Risk Management Services
Funded Full Time Equivalents (FTE’s)
Legal Insurance & Risk
Management Services
2012/2013
Approved (Apr 1/12)
2013/2014
Proposed Change (+/-)
2013/2014
Approved Total FTEs
26
+6.5
32.5
Funded FTEs
Includes full & part-time
permanent positions
Legal, Insurance and Risk Management Services
Operating Budget Overview
Legal Summary of Expense & Revenue Types
Expenditures
* Compensation and Benefits
* Office
* External Services
* Supplies
* Building Costs
* Equipment & Communications
* Other Goods & Services
* Interdepartmental
* Other Fiscal
** Total
2011-12 Budget 2012-13 Budget 2012-13 Actual 2013-14 Budget Budget Var. Var as %
2,450,165
2,480,000
2,558,374
3,050,800
570,800
23.0
76,719
68,900
91,259
117,600
48,700
70.7
341,813
360,100
582,744
508,100
148,000
41.1
4,000
4,000
10,000
21
112,334
110,400
140,864
180,900
70,500
63.9
(11,109)
(371,336)
(372,000)
(293,969)
(470,900)
(98,900)
26.6
2,619,695
Revenues
* Fee Revenues
* Other Revenue
** Total
(194,100)
Net Surplus/Deficit
2,647,400
3,068,185
3,390,500
743,100
28.1
2011-12 Budget 2012-13 Budget 2012-13 Actual 2013-14 Budget Budget Var. Var as %
(144,100)
(209,400)
(218,527)
(211,500)
(2,100)
1.0
(50,000)
(29,642)
(31,000)
(31,000)
2,425,595
(209,400)
2,438,000
(248,169)
2,820,016
(242,500)
3,148,000
(33,100)
710,000
15.8
29.1
Legal Summary of Net Expenditures by Business Unit Division
Cost Centers/Groups
2011-12 Budget 2012-13 Budget 2012-13 Actual 2013-14 Budget Budget Var. Var as %
A110 Legal Services
2,425,595
2,438,000
2,818,360
3,148,000
710,000
29.1
A303 Risk & Insurance Services
1,656
* Legal Services
2,425,595
2,438,000
2,820,016
3,148,000
710,000
29.1
** Total
2,425,595
2,438,000
2,820,016
3,148,000
710,000
29.1
Legal Service Area Budget Overview
Service Area
Insurance & Risk Management Summary
of Expense & Revenue Types
Legal Services Summary of Expense &
Revenue Types
2011-12 Budget
2012-13 Budget
2012-13 Actual 2013-14 Budget
2013-14 Var.
Var. %
1,656
2,425,595
2,438,000
2,818,360
3,148,000
710,000
29.1
2,425,595
2,438,000
2,820,016
3,148,000
710,000
29.1
M3
Halifax Regional Municipality
2013/14 Business Plans and Budget (Approved)
Legal, Insurance and Risk Management Services
Legal, Insurance and Risk Management Services Key Metrics
Key Metrics and Drivers
Compensation as a % of Total
Expenditures per Dwelling
(186,447 dwellings)
09/10
10/11
11/12
12/13
13/14
Actual
Actual
Actual
Projection
Target
92%
91%
94%
88%
85%
$14.11
$13.93
$14.57
$16.13
$16.49
Legal, Insurance and Risk Management Services
Strategic Initiatives for 2013/14
Legal, Insurance and Risk Management Services has faced many challenges this year with the beginning
of the implementation of approximately 80 recommendations put forward by the Catalyst Consulting
report and recommendations of the Auditor General through his reports. Significant progress has been
made during the last year, but there is still a lot of work to do.
Legal Services has restructured so that the department is divided into three specialized teams of lawyers
with support staff to provide excellence in customer service. Client service standards were developed
and documented and Service Level Agreements are being implemented with each business unit to
clarify expectations and solidify our commitment to provide quality, cost effective, timely and accessible
legal services to HRM Council, its boards, commissions, committees and the business units. We intend
to establish a web presence and have resources available on the intranet for easy reference.
One major challenge continues to be electronic file/document/case management. Unfortunately,
information technology solutions were not included as part of the Legal Services review and this is a key
component in creating efficiencies in Legal Services. The review of administrative functions and the
documentation of key administrative processes will continue during the coming year with a focus on
increasing efficiencies where available.
We are hopeful that the restructuring and addition of staff will accommodate the increased demand for
internal legal services while providing excellence in service delivery to HRM. Although our budget will
increase this year, we expect that HRM will experience an overall savings.
Legal Services is in the early stages of its contract review project which is expected to continue over the
next few years. A contract management team has been put in place and they are beginning to work
cooperatively with the business unit departments to determine best practices and processes with
respect to negotiations, drafting, approval and other legal issues related to agreements. Once
complete, this will bring a significant amount of confidence to Council and HRM senior management in
the integrity and enforceability of contracts.
M4
Halifax Regional Municipality
2013/14 Business Plans and Budget (Approved)
Legal, Insurance and Risk Management Services
Legal Services is also in the early stages of the By-law review project. It is expected that significant
progress will be made on this front in the next few years. It is a lengthy, collaborative project,
sometimes involving several business units, but once complete, will provide HRM with a solid, unified
set of By-laws.
Restructuring throughout HRM has caused a significant increase in the requirement for legal advice and
clarification regarding HRM processes as well as increased scrutiny of authority for binding HRM. Steps
are being taken to ensure that staff are educated as to the role Legal, Insurance and Risk Management
Services plays in their day to day business and what needs to be reviewed and/or approved by Legal.
New policy is drafted (When to Consult Legal Services) and determinations are being made in
consultation with the CAO and the Business Unit Directors to determine requirements for the signature
of Legal Services on Council Reports, and any documents required to be executed which bind the
Municipality.
The retirement of the manager of Risk and Insurance Services also provided challenges and has led to
the restructuring of that department with newly defined roles and responsibilities to manage the
workload with reduced staffing. The relocation of Risk and Insurance Services to the first floor, Duke
Tower, has increased the ability of the division to provide claims handling and risk management advices
in an effective manner.
Summary of 2013/14 Legal, Insurance and Risk Management Services Changes
New or Expanded Service
By-law review project – a solicitor has been hired to carry out a complete
review of HRM By-laws (new, amend existing, consolidate existing) Note that
this is a multi-year project.
Real Estate transactions completed “in house” –
Senior lawyer and paralegal responsible for transactions, advice and assistance
to Real Estate
Contract Review – review and/or standardization of contracts, leases, where
appropriate
Note that this is a multi-year project.
Tax Sales – backlog of approximately 300 files and ongoing work in tax sales
Note that this is a multi-year project.
Handling most litigation and commercial files “in house” except those to be
determined by the Director of Legal Services as a conflict of interest, requiring
specialized legal services or in other unusual circumstances
Increase in number of claims handled “in house” (independent adjusting
services)
Priority Alignment
Excellence in Service Delivery
Excellence in Service Delivery
Excellence in Service Delivery
Financial Stewardship
Excellence in Service Delivery
Organizational Capacity
M5
Halifax Regional Municipality
2013/14 Business Plans and Budget (Approved)
Legal, Insurance and Risk Management Services
2013/14 Legal, Insurance and Risk Management Services
Service Area Plans
Legal Services:
Legal Services is comprised of three service teams: Litigation, Prosecution, and Solicitor Services.
Services Delivered:

Litigation Services - represents HRM in proceedings involving the Municipality and its employees
before the Supreme Court and administrative tribunals including arbitration panels, Labour
Boards, Police Review Board, Human Rights Commission, NEB, UARB, and CTA

Litigation Services – provides research, advice and opinions, on litigation and potential litigation
matters

Litigation Services – represents HRM in all actions and hearings made or brought against the
HRM including mediation and alternative dispute resolution processes

Prosecution Services – prosecutes violations under the Motor Vehicle Act, Liquor Control Act, Fire
Safety Act, Protection of Property Act, 911 Act, Off Highway Vehicle Act, Smoke Free Places Act,
Building Code, Land use violations, Development Agreement violations, violations of municipal
by-laws, and various regulatory infractions as well as HRM-issued parking tickets, including all
related applications and appeals

Prosecution Services – Training - provides training to police and other staff in respect to
prosecutions and other legal issues

Solicitor Services - provides legal advice to Council in respect of the conduct of the business of
the municipality; provides advice to management and staff on a wide range of topics, including
related research on a daily basis for the HRM

Solicitor Services – By-law Development and Reform – works with business units to develop,
amend, and consolidate By-laws for the Municipality

Solicitor Services - Contract Review - Legal Services works with business units to draft a wide
array of legal agreements, leases, policies and MOU’s and assist in negotiations where required

Solicitor Services - Property Conveyance, Tax Sales, and Related Advice – Completes property
transactions for land acquisitions and disposals, title investigations, reviews and approves
documents regarding encroachments, easements, and rights-of way, prepares conveyance
documents for tax sales as well as provides ongoing advice to Real Estate on any number of
issues
M6
Halifax Regional Municipality
2013/14 Business Plans and Budget (Approved)
Legal, Insurance and Risk Management Services
Key Service Area Metrics
Number of Files Opened
Library
HRWC
Other Boards/Commissions
CAO
C&RS
Council
External & Corp Affairs
Finance
Fire
HR
Legal/Risk & Insurance
P&I
Police
Transit
TPW
Prosecution Files
11/12
12/13
Actual
Actual
542
798
7
3
7
30
2
43
79
8
121
13
4
41
5
143
13
5
14
9
136
92
171
122
25
21
30
45
80
68
246
168
2013/14 Legal Services - Key Deliverables
BU #
LIRM 1.1
LIRM 1.2
LIRM 1.3
LIRM 1.4
LIRM 1.5
LIRM 1.6
13/14 Deliverables
Continue implementation of approx. 80 recommendations from the
Catalyst Consulting Report so that HRM Legal Services is positioned to
handle the majority of legal issues facing HRM. This initiative includes
hiring additional staff, moving work formerly done by outside legal
firms “in house” and formalizing process and policies for carrying out
HRM’s legal work. 7 Project Charters have been developed to itemize
and implement the recommendations.
Create efficiencies within the Business Unit, administratively and
collaboratively with input internally and from other business units
(technology, processes, file/case management, etc.)
By-law review project – a solicitor has been hired to carry out a
complete review of HRM By-laws (new, amend existing, consolidate
existing) – This will be a multi-year project.
Real Estate transactions completed “in house” –
Senior lawyer and paralegal responsible for transactions, advice and
assistance to Real Estate
Contract Review – review and/or standardization of contracts, leases,
where appropriate
Tax Sales – backlog of approximately 300 files and ongoing work in tax
sales. This will be a multi-year project.
Strategic Alignment
Excellence in Service
Delivery
Organizational Capacity
Excellence in Service
Delivery
Excellence in Service
Delivery
Excellence in Service
Delivery
Financial Stewardship
M7
Halifax Regional Municipality
2013/14 Business Plans and Budget (Approved)
LIRM 1.7
LIRM 1.8
Legal, Insurance and Risk Management Services
Handling most litigation and commercial files “in house” except those
to be determined by the Director of Legal Services as a conflict of
interest or requiring specialized legal services or in other unusual
circumstances
Become proactive stewards by increasing awareness of the role and
responsibilities of Legal, Insurance and Risk Management Services
within HRM
Excellence in Service
Delivery
Excellence in Service
Delivery
Risk and Insurance Services:
Risk and Insurance Services acts in conjunction with legal services to manage claims made against the
HRM. This section manages the financing of HRM risk through insurance and a reserve. To reduce
losses they seek to apply sound risk management processes to the identification, analysis, and
mitigation of loss exposures to the HRM
Services Delivered:

Claims Handling – Investigation, management, resolution and administration of all insurance
claims made against or on behalf of HRM

Market HRM to national and international insurance companies

Design and management of self-insurance program, reserve funds and insurance coverage to fit
the needs of HRM operations

Ongoing review, procurement and maintenance of optimum insurance coverage suitable to the
needs of HRM

Ongoing review of contracts, agreements, leases and special events to address risk exposures

Conduct site assessments and obtain building appraisals

Provide risk management advice, training and monitoring, particularly in the area of loss control
to internal and external clients
Key Service Area Metrics
Claims received by policy year (June 1 – May 31)
10/11
11/12
12/13
Actual
Actual
Actual
1125
959
823
M8
Halifax Regional Municipality
2013/14 Business Plans and Budget (Approved)
Legal, Insurance and Risk Management Services
2013/14 Risk and Insurance Services Key Deliverables
BU #
LIRM 2.1
LIRM 2.2
LIRM 2.3
LIRM 2.4
LIRM 2.5
LIRM 2.6
LIRM 2.7
LIRM 2.8
LIRM 2.9
LIRM 2.10
13/14 Deliverables
Annual Insurance Renewal: Complete renewal for insurance program
Building Valuation: Continue Building Appraisals Project appraising
twenty buildings
Adjuster RFP
Full integration of integrated risk management system (multi-year
project)
Submission of aggregate reimbursement to former insurer (multi-year
project)
Provision of risk management seminars for internal and external clients
to reduce exposure
Development of risk matrix to identify areas of risk
Implement standard reporting practises to all Business Units
Web Site: Design for clarity of content and expansion of standard
information
Deductible Scheme: Create balanced and equitable means of allocation
of deductible with enhanced reporting of losses to Business Unit
Strategic Alignment
Financial Stewardship
Financial Stewardship
Excellence in Service
Delivery
Excellence in Service
Delivery
Financial Stewardship
Excellence in Service
Delivery
Excellence in Service
Delivery
Excellence in Service
Delivery
Excellence in Service
Delivery
Excellence in Service
Delivery
M9
Halifax Regional Municipality
2013/14 Business Plans and Budget (Approved)
Legal, Insurance and Risk Management Services
Legal Summary of Net Expenditures by Business Unit Division
Cost Centers/Groups
2011-12 Budget 2012-13 Budget 2012-13 Actual 2013-14 Budget Budget Var. Var as %
A110 Legal Services
2,425,595
2,438,000
2,818,360
3,148,000
710,000
29.1
A303 Risk & Insurance Services
1,656
* Legal Services
2,425,595
2,438,000
2,820,016
3,148,000
710,000
29.1
** Total
2,425,595
2,438,000
2,820,016
3,148,000
710,000
29.1
Legal Summary of Gross Expenditures
Cost Centers/Groups
2011-12 Budget 2012-13 Budget 2012-13 Actual 2013-14 Budget Budget Var. Var as %
A110 Legal Services
2,619,695
2,647,400
3,066,529
3,390,500
743,100
28.1
A303 Risk & Insurance Services
1,656
* Legal Services
2,619,695
2,647,400
3,068,185
3,390,500
743,100
28.1
** Total
2,619,695
2,647,400
3,068,185
3,390,500
743,100
28.1
Legal Summary of Gross Revenue
Cost Centers/Groups 2011-12 Budget 2012-13 Budget 2012-13 Actual 2013-14 Budget Budget Var. Var as %
A110 Legal Services
(194,100)
(209,400)
(248,169)
(242,500)
(33,100)
15.8
* Legal Services
(194,100)
(209,400)
(248,169)
(242,500)
(33,100)
15.8
** Total
(194,100)
(209,400)
(248,169)
(242,500)
(33,100)
15.8
M10
Halifax Regional Municipality
2013/14 Business Plans and Budget (Approved)
Legal, Insurance and Risk Management Services
Legal Summary Details
Expenditures
6001 Salaries - Regular
6002 Salaries - Overtime
6005 PDP Increases
6054 Vacation payout
6100 Benefits - Salaries
6110 Vacancy Management
6152 Retirement Incentives
6153 Severence
6154 Workers' Compensation
6199 Comp & Ben InterDept
* Compensation and Benefits
6201 Telephone
6202 Courier/Postage
6203 Office Furn/Equip
6204 Computer S/W & Lic
6205 Printing & Reproduction
6207 Office Supplies
6299 Other Office Expenses
* Office
6301 Professional Fees
6302 Legal Fees
6303 Consulting Fees
6309 Litigation Disbursements
6314 Prosecution Services
6399 Contract Services
* External Services
6499 Other Supplies
* Supplies
6699 Other Building Cost
* Building Costs
6702 Small Tools
* Equipment & Communications
6901 Membership Dues
6902 Conferences and Workshops
6903 Travel - Local
6904 Travel - Out of Town
6905 Training & Education
6914 Recruiting
6917 Books and Periodicals
6918 Meals
6938 Rewarding Excellence
6999 Other Goods and Services
* Other Goods & Services
7008 ItnTrsf IT & Commun
7010 IntTrfr Insur Funds
9911 PM Labour-Reg
* Interdepartmental
8008 Transfer to/from Reserves
* Other Fiscal
** Total
Revenues
5250 Sales of Services Other
* Fee Revenues
5508 Recov External Parti
* Other Revenue
** Total
Net Surplus/Deficit
2011-12 Budget 2012-13 Budget 2012-13 Actual 2013-14 Budget Budget Var. Var as %
2,083,543
2,150,400
2,128,401
2,595,400
445,000
20.7
889
1,000
3,565
2,500
1,500
150.0
(36,168)
11,207
327,367
342,000
350,747
427,300
85,300
24.9
(50,600)
(20,000)
30,600
(60.5)
11,989
12,000
11,898
15,200
3,200
26.7
99,543
26,377
25,200
26,314
30,400
5,200
20.6
(37,133)
2,450,165
2,480,000
2,558,374
3,050,800
570,800
23.0
13,250
14,500
16,694
22,400
7,900
54.5
3,600
3,600
5,791
5,600
2,000
55.6
7,907
4,100
16,023
11,100
7,000
170.7
30,562
28,800
32,659
54,000
25,200
87.5
4,400
3,500
1,500
(2,000)
(57.1)
17,000
14,400
20,074
23,000
8,600
59.7
18
76,719
68,900
91,259
117,600
48,700
70.7
442
60,500
60,500
160,813
170,000
266,888
250,000
80,000
47.1
109,466
25,000
27,000
42,132
27,000
156,000
163,100
160,615
163,100
3,202
7,500
7,500
341,813
360,100
582,744
508,100
148,000
41.1
4,000
4,000
4,000
4,000
10,000
10,000
21
21
58,000
58,000
55,511
80,200
22,200
38.3
5,000
5,000
6,000
6,900
9,016
9,900
3,000
43.5
6,035
6,000
1,616
8,000
2,000
33.3
9,817
9,200
32,251
40,500
31,300
340.2
210
30,000
30,000
41,301
35,000
5,000
16.7
582
300
603
500
200
66.7
1,000
25
800
800
900
331
1,000
1,000
112,334
110,400
140,864
180,900
70,500
63.9
600
(11,727)
18
(11,109)
(371,336)
(372,000)
(293,969)
(470,900)
(98,900)
26.6
(371,336)
(372,000)
(293,969)
(470,900)
(98,900)
26.6
2,619,695
2,647,400
3,068,185
3,390,500
743,100
28.1
2011-12 Budget 2012-13 Budget 2012-13 Actual 2013-14 Budget Budget Var. Var as %
(144,100)
(209,400)
(218,527)
(211,500)
(2,100)
1.0
(144,100)
(209,400)
(218,527)
(211,500)
(2,100)
1.0
(50,000)
(29,642)
(31,000)
(31,000)
(50,000)
(29,642)
(31,000)
(31,000)
(194,100)
2,425,595
(209,400)
2,438,000
(248,169)
2,820,016
(242,500)
3,148,000
(33,100)
710,000
15.8
29.1
M11