Item - 2010.EX45.40
Tracking Status
- City Council adopted this item on July 6, 2010 without amendments.
- This item was considered by Executive Committee on June 14, 2010 and was adopted with amendments. It will be considered by City Council on July 6, 2010.
EX45.40 - Potential Monetization of City Assets
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
City Council Decision
City Council on July 6, 7 and 8, 2010, adopted the following:
1. Toronto City Council unequivocally indicate that, as Toronto Hydro is a necessary instrument to achieve Toronto’s environmental, economic development and financial objectives, it is not in the public interest to sell all or any part of it.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2010/ex/bgrd/backgroundfile-30931.pdf
Communications (Committee)
(June 14, 2010) Letter from Ann Dembinski, President, CUPE Local 79 (EX.Main.EX45.40.2)
Motions (City Council)
That City Council delete the recommendation of the Executive Committee and adopt instead the following recommendation contained in the report (June 2, 2010) from the City Manager and Deputy City Manager and Chief Financial Officer:
1. City Council authorize the City Manager, and the Deputy City Manager and Chief Financial Officer, in consultation with the City Solicitor, to request the Province to amend the Electricity Act, 1998 or the regulations under that Act, to eliminate the City's obligation to pay any departure or transfer taxes applicable to the monetization of Toronto Hydro Corporation.
Vote (Amend Item) Jul-06-2010 8:18 PM
| Result: Lost | Majority Required - EX45.40 - Stintz - Motion 1 |
|---|---|
| Total members that voted Yes: 6 | Members that voted Yes are Mike Feldman, Doug Holyday, Denzil Minnan-Wong, Cesar Palacio, John Parker, Karen Stintz |
| Total members that voted No: 29 | Members that voted No are Paul Ainslie, Brian Ashton, Maria Augimeri, Sandra Bussin (Chair), Shelley Carroll, Raymond Cho, Janet Davis, Frank Di Giorgio, John Filion, Paula Fletcher, Rob Ford, Adam Giambrone, Suzan Hall, A.A. Heaps, Cliff Jenkins, Norman Kelly, Chin Lee, Gloria Lindsay Luby, Pam McConnell, Joe Mihevc, Peter Milczyn, Ron Moeser, Howard Moscoe, Frances Nunziata, Joe Pantalone, Gord Perks, David Shiner, Michael Thompson, Adam Vaughan |
| Total members that were Absent: 10 | Members that were absent are Glenn De Baeremaeker, Mike Del Grande, Mark Grimes, Giorgio Mammoliti, David Miller, Case Ootes, Anthony Perruzza, Kyle Rae, Bill Saundercook, Michael Walker |
That City Council request the City Manager to meet with the CEO and President of Enwave, Toronto Hydro, and representatives of BPC Penco to review the City Manager's report (June 2, 2010) and request the City Manager to report further to the Executive Committee and City Council early in 2011 on the outcome of these discussions.
Vote (Amend Item (Additional)) Jul-06-2010 8:19 PM
| Result: Lost | Majority Required - EX45.40 - Shiner - Motion 2 |
|---|---|
| Total members that voted Yes: 8 | Members that voted Yes are Frank Di Giorgio, Mike Feldman, Doug Holyday, Cliff Jenkins, Joe Pantalone, John Parker, David Shiner, Karen Stintz |
| Total members that voted No: 27 | Members that voted No are Paul Ainslie, Brian Ashton, Maria Augimeri, Sandra Bussin (Chair), Shelley Carroll, Raymond Cho, Janet Davis, Glenn De Baeremaeker, John Filion, Paula Fletcher, Rob Ford, Adam Giambrone, Suzan Hall, A.A. Heaps, Norman Kelly, Chin Lee, Gloria Lindsay Luby, Pam McConnell, Joe Mihevc, Peter Milczyn, Ron Moeser, Howard Moscoe, Frances Nunziata, Cesar Palacio, Gord Perks, Michael Thompson, Adam Vaughan |
| Total members that were Absent: 10 | Members that were absent are Mike Del Grande, Mark Grimes, Giorgio Mammoliti, David Miller, Denzil Minnan-Wong, Case Ootes, Anthony Perruzza, Kyle Rae, Bill Saundercook, Michael Walker |
July 6, 2010 at 7:51 p.m. - That Council remain in session past the 8:00 p.m. recess in order to complete Item EX45.40.
Vote (Extend the Meeting) Jul-06-2010 7:53 PM
| Result: Carried | Two-Thirds Required - EX45.40 - Heaps - Extend to complete the Item |
|---|---|
| Total members that voted Yes: 26 | Members that voted Yes are Paul Ainslie, Brian Ashton, Sandra Bussin (Chair), Shelley Carroll, Janet Davis, Glenn De Baeremaeker, John Filion, Paula Fletcher, Adam Giambrone, Mark Grimes, Suzan Hall, A.A. Heaps, Chin Lee, Gloria Lindsay Luby, Pam McConnell, Joe Mihevc, Peter Milczyn, Ron Moeser, Howard Moscoe, Frances Nunziata, Cesar Palacio, Joe Pantalone, John Parker, Gord Perks, Michael Thompson, Adam Vaughan |
| Total members that voted No: 12 | Members that voted No are Raymond Cho, Mike Del Grande, Frank Di Giorgio, Mike Feldman, Rob Ford, Doug Holyday, Cliff Jenkins, Norman Kelly, Case Ootes, Kyle Rae, David Shiner, Karen Stintz |
| Total members that were Absent: 7 | Members that were absent are Maria Augimeri, Giorgio Mammoliti, David Miller, Denzil Minnan-Wong, Anthony Perruzza, Bill Saundercook, Michael Walker |
That in accordance with the provisions of Chapter 27, Council Procedures, Council end the debate on this Item and take the vote immediately. (This procedural motion requires a two-thirds vote to carry.)
Vote (End Debate) Jul-06-2010 8:17 PM
| Result: Carried | Two-Thirds Required - EX45.40 - Giambrone - End debate |
|---|---|
| Total members that voted Yes: 30 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Sandra Bussin (Chair), Shelley Carroll, Raymond Cho, Janet Davis, Mike Feldman, John Filion, Paula Fletcher, Rob Ford, Adam Giambrone, Suzan Hall, A.A. Heaps, Cliff Jenkins, Norman Kelly, Chin Lee, Gloria Lindsay Luby, Pam McConnell, Joe Mihevc, Peter Milczyn, Howard Moscoe, Frances Nunziata, Cesar Palacio, Joe Pantalone, John Parker, Gord Perks, David Shiner, Karen Stintz, Michael Thompson, Adam Vaughan |
| Total members that voted No: 5 | Members that voted No are Brian Ashton, Frank Di Giorgio, Doug Holyday, Denzil Minnan-Wong, Ron Moeser |
| Total members that were Absent: 10 | Members that were absent are Glenn De Baeremaeker, Mike Del Grande, Mark Grimes, Giorgio Mammoliti, David Miller, Case Ootes, Anthony Perruzza, Kyle Rae, Bill Saundercook, Michael Walker |
Vote (Adopt Item) Jul-06-2010 8:21 PM
| Result: Carried | Majority Required - EX45.40 - Adopt the Item |
|---|---|
| Total members that voted Yes: 30 | Members that voted Yes are Paul Ainslie, Brian Ashton, Maria Augimeri, Sandra Bussin (Chair), Shelley Carroll, Raymond Cho, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, John Filion, Paula Fletcher, Rob Ford, Adam Giambrone, Suzan Hall, A.A. Heaps, Cliff Jenkins, Norman Kelly, Chin Lee, Gloria Lindsay Luby, Pam McConnell, Joe Mihevc, Peter Milczyn, Ron Moeser, Howard Moscoe, Frances Nunziata, Cesar Palacio, Joe Pantalone, Gord Perks, Michael Thompson, Adam Vaughan |
| Total members that voted No: 6 | Members that voted No are Mike Feldman, Doug Holyday, Denzil Minnan-Wong, John Parker, David Shiner, Karen Stintz |
| Total members that were Absent: 9 | Members that were absent are Mike Del Grande, Mark Grimes, Giorgio Mammoliti, David Miller, Case Ootes, Anthony Perruzza, Kyle Rae, Bill Saundercook, Michael Walker |
EX45.40 - Potential Monetization of City Assets
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
Committee Recommendations
The Executive Committee recommends that:
1. Toronto City Council unequivocally indicate that, as Toronto Hydro is a necessary instrument to achieve Toronto’s environmental, economic development and financial objectives, it is not in the public interest to sell all or any part of it.
Origin
Summary
The City of Toronto will be faced with significant fiscal pressures in the coming years. One strategy to help deal with fiscal constraints is to attempt to increase the returns on City held assets, as can sometimes be achieved by converting City investments in assets into cash where the assets may not be producing optimal financial or public policy benefits.
The purpose of this report is to provide preliminary information to Council regarding the potential for monetization of the City’s corporate investment interests in Toronto Hydro Corporation, Enwave Energy Corporation and the Toronto Parking Authority. Monetization of these assets could allow for the City to realize a portion of the current market value, and reinvest the proceeds in higher order City public policy priorities, including debt reduction.
Notwithstanding the potential monetization of City assets, it must be emphasized that Council needs to consider the public policy ramifications of the sale of City assets. In addition, Council is aware that potential monetization of City assets is not the long term solution to financial sustainability, but only one possible action in minimizing long term debt for the City of Toronto.
Background Information
https://www.toronto.ca/legdocs/mmis/2010/ex/bgrd/backgroundfile-30931.pdf
Communications
(June 14, 2010) Letter from Ann Dembinski, President, CUPE Local 79 (EX.Main.EX45.40.2)
Speakers
Mr. John Camilleri, President, CUPE Local 1
Mr. Tim Maguire, First Vice President, CUPE Local 79
Mr. Mark Ferguson, President, CUPE Local 416
Motions
That the Executive Committee recommend to City Council that the recommendation contained in the report (June 2, 2010) from the City Manager and the Deputy City Manager and Chief Financial Officer be struck out, and that Toronto City Council unequivocally indicate that as Toronto Hydro is a necessary instrument to achieve Toronto’s environmental, economic development and financial objectives, it is not in the public interest to sell all or any part of it.
Vote (Amend Item) Jun-14-2010
| Result: Carried | Majority Required |
|---|---|
| Total members that voted Yes: 9 | Members that voted Yes are Shelley Carroll, Janet Davis, Glenn De Baeremaeker, Paula Fletcher, Norman Kelly, Joe Mihevc, David Miller (Chair), Joe Pantalone, Kyle Rae |
| Total members that voted No: 0 | Members that voted No are |
| Total members that were Absent: 3 | Members that were absent are Giorgio Mammoliti, Pam McConnell, Howard Moscoe |
That the Executive Committee request the City Manager to meet with the CE0 and President of Enwave, Toronto Hydro and representatives of BPC Penco to review the City Manager’s report dated June 2, 2010; and the City Manager be requested to report further to the Executive Committee and City Council early in 2011, on the outcome of these discussions.