Item - 2015.EX3.1

City Council on March 10 and 11, 2015, adopted the following:

Rates and Fees:

1.         City Council adopt, effective March 13, 2015:

a.         the combined water and wastewater consumption rates charged to metered consumers as shown below and in Appendix B to the report (January 13, 2015) from the Deputy City Manager and Chief Financial Officer, and the General Manager, Toronto Water:

b.         an increase of 8% to the water and wastewater consumption rates charged to flat rate consumers, as set out in Appendix B to the report (January 13, 2015) from the Deputy City Manager and Chief Financial Officer, and the General Manager, Toronto Water;

c.         the water and wastewater service fees, as set out in Appendix C to the report (January 13, 2015) from the Deputy City Manager and Chief Financial Officer and the General Manager, Toronto Water;

d.         the deletion of the Revenue Services fee of $25.50 for water certification, Ref. No. 34, Chapter 441– Fees and Charges, Appendix D, Schedule 2, Water Services; and

e.         the water rebate for eligible low-income seniors and low-income disabled persons be set at a rate of $0.9584 /m3, representing a 30% reduction from the Block 1 rate (paid on or before the due date).

2.         City Council adopt the following policies with respect to reserve and reserve fund adequacy:

a.         the Water Stabilization Reserve (XQ1003) maintain a maximum balance of $12.9 million, with any excess amount to be transferred to the Water Capital Reserve Fund (XR6003); and

b.         the Wastewater Stabilization Reserve (XQ1004) maintain a maximum balance of $17.1 million, with any excess amount to be transferred to the Wastewater Capital Reserve Fund (XR6004).

3.         City Council authorize that the necessary amendments be made to Municipal Code Chapter 441 - Fees and Charges, Municipal Code Chapter 849 - Water and Sewage Services and Utility Bill, and Municipal Code Chapter 681- Sewers, and any other necessary Municipal Code Chapters as may be required, to give effect to Parts 1 and 2 above.

Capital Budget:

4.         City Council approve the 2015 Recommended Capital Budget for Toronto Water with a total project cost of $1.121 billion, and 2015 cash flow of $782.403 million and future year commitments of $2.983 billion composed of the following and as amended by Parts 20 to 24 below:

a.         New Cash Flow Funds for:

i.          286 new / change in scope sub-projects with a 2015 total project cost of $1.121 billion that requires cash flow of $42.771 million in 2015 and increases in future year cash flow commitments of $218.605 million in 2016; $227.416 million for 2017; $173.716 million for 2018; $111.014 million for 2019; $129.441 million for 2020; $119.762 million for 2021; $29.548 million for 2022; $28.368 million for 2023 and $39.930 million for 2024; and

ii.         219 previously approved sub-projects with a 2015 cash flow of $683.650 million; and future years cash flow commitments of $630.161 million in 2016; $527.741 million for 2017; $294.364 million for 2018; $186.100 million for 2019; $91.861 million for 2020; $65.631 million for 2021; $56.959 million for 2022; and $52.152 million for 2023.

5.         City Council the 2014 approved cash flow for 122 previously approved sub-projects with carry forward funding from 2014 into 2015 totalling $55.982 million.

6.         City Council approve the 2016-2024 Recommended Capital Plan for Toronto Water totalling $7.275 billion in project estimates, composed of $149.421 million in 2016; $309.883 million for 2017; $704.947 million for 2018; $934.350 million for 2019; $992.975 million for 2020; $1.063 billion for 2021; $1.085 billion for 2022; $1,001.498 billion for 2023; and $1.034 billion in 2024.

7.         City Council consider the operating costs of $0.820 million net in the 2015, ($898.2 million) net in 2016; ($0.121 million) net in 2017; $5.895 million net in 2018; $5.895 million net in 2019; $2.504 million net in 2020; and $0.050 million net in 2021 resulting from the approval of the 2015 Recommended Capital Budget for inclusion in the 2015 and future year operating budgets.

8.         City Council approve three temporary capital positions for the delivery of new 2015 capital projects and that the duration for each temporary position not exceed the life and funding of its respective project / sub-project.

9.         City Council request the Deputy City Manager and Chief Financial Officer in consultation with the General Manager, Toronto Water to advance the 2016 cashflow for the Basement Flooding projects into 2015, should it become evident that greater than planned volume of work can be completed, and that the 2016 – 2024 budgeted cash flows be adjusted accordingly as part of the 2016 Budget process.

10.       City Council request General Manager, Toronto Water to report back with an update on the state of good repair backlog as part of the 2016 Budget Process.

Operating Budget:

11.       City Council approve the 2015 Recommended Operating for Toronto Water of $422.452 million gross, and $658.221 million net in capital-from-current contribution, composed the following services:

12.       City Council approve the 2015 recommended service levels for Toronto Water as outlined on pages 20, 24 and 28 of the 2015 Staff Recommended Operating Budget for Toronto Water and the associated staff complement of 1,754.65 positions.

13.       City Council authorize the City Solicitor to introduce any necessary Bills required to implement City Council's decision, subject to any necessary refinements, including stylistic, format and organization, as may be identified by the City Solicitor, the Deputy City Manager and Chief Financial Officer, and General Manager, Toronto Water.

14.       City Council request the General Manager, Toronto Water to initiate and expedite the completion of new Basement Flooding Protection Environmental Assessment studies for the remainder of the City, specifically identified as Study Areas 42 through 67 and in the order of priority as shown in Schedule A to the report (December 18, 2014) from the General Manager, Toronto Water.

15.          City Council authorize the creation of a Toronto Tree Canopy Reserve Fund to help achieve the Mayor's and City's forest canopy targets (as approved by the General Manager, Parks Forestry and Recreation and outlined in the City approved Strategic Forest Management Plan, 2013), mitigate storm water runoff and mitigate climate change impacts.

16.          City Council direct that funding for the Toronto Tree Canopy Reserve Fund be provided from the Toronto Water Stabilization Reserve in the amount of $1 million and further, that any year end unallocated funds from the Toronto Water tree planting budget be allocated to the Toronto Tree Canopy Reserve Fund.

17.          City Council direct that the appropriate staff be authorized to take the necessary actions to implement Council's decision in Parts 15 and 16 above).

18.          City Council direct that the annual contribution to the Toronto Tree Canopy Reserve Fund be reviewed annually as part of budget process.

General:

19.          City Council request the General Manager, Toronto Water and the Deputy City Manager and Chief Financial Officer, in consultation with the General Manager, Parks, Forestry and Recreation and Chief Executive Officer, Toronto and Region Conservation Authority, to consider as part of the 2016 budget process, funding the following Toronto Waterfront projects:

a.            $1.5 million for Etobicoke Waterfront projects including Humber Bay Park and Mimico Park Trail enhancements;

b.            $1.5 million for Scarborough Waterfront projects including the Scarborough Bluffs Waterfront Trail Environmental Assessment; and

c.            1.5 million for Toronto Waterfront projects including Tommy Thompson Park enhancements.

20.       City Council confirm confidential instructions issued to staff during the Closed Session.

21.           Subject to Part 22 below, City Council authorize the City Manager to negotiate a cost-sharing agreement with Metrolinx with respect to the Georgetown South Project and related construction by Metrolinx in the Kitchener GO Rail corridor, substantially in accordance with the terms listed in Appendix 1 to Confidential Attachment 1 to the report (March 1, 2015) from the City Manager, the Deputy City Manager Cluster B and the Deputy City Manager and Chief Financial Officer, as amended by the confidential instructions issued to staff during the closed session, and such other terms and conditions as may be satisfactory to the Deputy City Manager, Cluster B and the Deputy City Manager and Chief Financial Officer, in a form satisfactory to the City Solicitor and to report back to Council.

22.           City Council direct that the City cost-sharing obligation beyond 2015 be subject to negotiation and approval by Council of a further cost-sharing agreement with the Province with respect to GO Transit and related facilities.

23.       City Council amend the timing of expenditures related to the Georgetown South project in the 2015 - 2024 Capital Budget and Plan by accelerating the contribution currently funded evenly over a 10-year period to now occur over the first 5 years of the Capital Budget and Plan (2015 - 2019).

24.       City Council affirm the recommended suspension from the 2015 - 2024 Capital Budget and Plan of the three annual $20 million GO Transit capital expansion contributions in 2015 through 2017, and direct the City Manager to continue to negotiate an end, or revision, to any legal obligations to make these contributions, in accordance with the rationale set out in Confidential Attachment 1 to the report (March 1, 2015) from the City Manager, the Deputy City Manager Cluster B and the Deputy City Manager and Chief Financial Officer, as amended by the confidential instructions issued to staff during the closed session.

25.       City Council direct that the confidential information contained in Confidential Attachment 1 to the report (March 1, 2015) from the City Manager, the Deputy City Manager Cluster B and the Deputy City Manager and Chief Financial Officer, as amended by the confidential instructions issued to staff during the closed session, remain confidential as it is information relating to future contractual negotiations and the security of the property of the City provided that such information or portions of such information may be released publicly at the discretion of the City Solicitor.

26.       City Council direct that the confidential information contained in Confidential Attachment 1 to the report (March 9, 2015) from the City Manager remain confidential as it relates to the security of the property of the municipality or local board.

27.       In view of the City of Toronto's financial contribution for upgrades to rail and municipal infrastructure along the Union-Pearson Express Corridor, City Council request Metrolinx, as part of the cost sharing agreement with Metrolinx, to include recognition of the City of Toronto's financial contribution including but not restricted to the City of Toronto name and logo being placed next to the Metrolinx name and logo that appears on trains, stations, electronic and print media and all hard copy and promotional campaigns.

28.            City Council refer the following Recommendation 2 contained in the report (March 1, 2015) from the City Manager, the Deputy City Manager Cluster B and the Deputy City Manager and Chief Financial Officer back to the Executive Committee for further consideration:

Recommendation to be referred:

2.            City Council endorse the principles in Appendix 2 to the Confidential Attachment as the basis for negotiating a new standard form of crossing and grade separation agreement on all Metrolinx rail corridors in Toronto and authorize the City Manager (to the extent not already delegated to staff) to negotiate such agreements on these terms and such other terms and conditions as may be satisfactory to the Deputy City Manager, Cluster B and the Deputy City Manager and Chief Financial Officer, in a form satisfactory to the City Solicitor, subject to final Council approval.

Confidential Attachment 1 to the report (March 1, 2015) from the City Manager, the Deputy City Manager Cluster B and the Deputy City Manager and Chief Financial Officer, as amended by the confidential instructions issued to staff during the closed session, remains confidential in its entirety in accordance with the provisions of the City of Toronto Act, 2006, as it is information relating to future contractual negotiations and the security of the property of the City provided that such information or portions of such information may be released publicly at the discretion of the City Solicitor.

Confidential Attachment 1 to the report (March 9, 2015) from the City Manager remains confidential in its entirety in accordance with the provisions of the City of Toronto Act, 2006, as it relates to the security of the property belonging to the City or one of its agencies, boards and commissions.

The balance of the Confidential presentation on Metrolinx remains confidential in accordance with the provisions of the City of Toronto Act, 2006, as it relates to the security of the property belonging to the City or one of its agencies, boards and commissions.