Item - 2017.EX25.8
Tracking Status
- City Council adopted this item on May 24, 2017 without amendments.
- This item was considered by the Executive Committee on May 16, 2017 and adopted without amendment. It will be considered by City Council on May 24, 2017.
EX25.8 - Toronto Hydro Corporation Equity Investment Funding
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
City Council Decision
City Council on May 24, 25 and 26, 2017, adopted the following:
1. City Council direct the Board of Directors, Toronto Hydro Corporation to issue 200 additional common shares of the Corporation, and authorize the City's purchase of all 200 shares for the aggregate subscription price of $250 million, to be held in the City's investment portfolio, and City Council direct that this purchase be made by June 30, 2017.
2. City Council amend section 1.7 of the Investment Policy to permit, as an authorized and suitable investment, the purchase of shares of Toronto Hydro Corporation pursuant to the authority of 142(5) of the Electricity Act, 1998.
3. City Council direct the Deputy City Manager and Chief Financial Officer to include in the 2018 preliminary budget, a plan to use some portion of the Toronto Hydro dividends enabled by the equity contribution to pay an annual return and reimburse the investment portfolio.
4. City Council adopt the confidential instructions in Confidential Attachment 1 to the report (May 2, 2017) from the Deputy City Manager and Chief Financial Officer.
5. City Council direct that Confidential Attachment 1 to the report (May 2, 2017) from the Deputy City Manager and Chief Financial Officer remain confidential until such time as the City Clerk receives written confirmation by Toronto Hydro Corporation that it has met its requirements under the Ontario Securities Act pertaining to the disclosure of material change to the Corporation.
Confidential Attachment 1 to the report (May 2, 2017) from the Deputy City Manager and Chief Financial Officer remains confidential in its entirety at this time in accordance with the provisions of the City of Toronto Act, 2006, as it relates to the security of the property of the municipality or local board. Confidential Attachment 1 to the report (May 2, 2017) from the Deputy City Manager and Chief Financial Officer will be made public once the City Clerk receives written confirmation by Toronto Hydro Corporation that it has met its requirements under the Ontario Securities Act pertaining to the disclosure of material change to the Corporation.
Confidential Attachment - The security of the property of the municipality or local board
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2017/ex/bgrd/backgroundfile-103517.pdf
Confidential Attachment 1
Motions (City Council)
Adoption of Executive Committee Recommendation 4.
Vote (Adopt Item) May-24-2017 2:06 PM
| Result: Carried | Majority Required - EX25.8 - Adoption of Executive Committee Recommendation 4 |
|---|---|
| Total members that voted Yes: 30 | Members that voted Yes are Jon Burnside, John Campbell, Shelley Carroll, Joe Cressy, Janet Davis, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Michael Ford, Mary Fragedakis, Mark Grimes, Jim Karygiannis, Mike Layton, Chin Lee, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Jaye Robinson, Neethan Shan, John Tory |
| Total members that voted No: 3 | Members that voted No are Stephen Holyday, Anthony Perruzza, David Shiner |
| Total members that were Absent: 11 | Members that were absent are Paul Ainslie, Maria Augimeri, Ana Bailão, Christin Carmichael Greb, Josh Colle, Gary Crawford, Vincent Crisanti, Michelle Holland, Norman Kelly, Michael Thompson, Kristyn Wong-Tam |
Adoption of the balance of the Item.
EX25.8 - Toronto Hydro Corporation Equity Investment Funding
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Confidential Attachment - The security of the property of the municipality or local board
Committee Recommendations
The Executive Committee recommends that:
1. City Council direct the Board of Directors of Toronto Hydro Corporation to issue 200 additional common shares of the Corporation, and authorize the City's purchase of all 200 shares for the aggregate subscription price of $250 million, to be held in the City's investment portfolio, and that this purchase be made by June 30, 2017.
2. City Council amend section 1.7 of the Investment Policy to permit, as an authorized and suitable investment, the purchase of shares of Toronto Hydro Corporation pursuant to the authority of 142(5) of the Electricity Act, 1998.
3. City Council direct the Deputy City Manager and Chief Financial Officer to include in the 2018 preliminary budget, a plan to use some portion of the Toronto Hydro dividends enabled by the equity contribution to pay an annual return and reimburse the investment portfolio.
4. City Council adopt the confidential instructions in Confidential Attachment 1 to the report (May 2, 2017) from the Deputy City Manager and Chief Financial Officer.
5. City Council direct that Confidential Attachment 1 to the report (May 2, 2017) from the Deputy City Manager and Chief Financial Officer remain confidential until such time as the Clerk receives written confirmation by Toronto Hydro Corporation that it has met its requirements under the Ontario Securities Act pertaining to the disclosure of material change to the Corporation.
Origin
Summary
The purpose of this report is to outline the implementation details for the City's $250 million equity investment in Toronto Hydro Corporation (THC), and to restore and enhance Toronto Hydro Corporation's dividends payable to the City.
Background Information
https://www.toronto.ca/legdocs/mmis/2017/ex/bgrd/backgroundfile-103517.pdf
Confidential Attachment 1
Speakers
Councillor Shelley Carroll