Item - 2018.GM29.17
Tracking Status
- City Council adopted this item on July 23, 2018 without amendments and without debate.
- This item was considered by the Government Management Committee on July 3, 2018 and adopted without amendment. It will be considered by City Council on July 23, 2018.
GM29.17 - Extension of the Service Agreement for the Collection of Municipal Land Transfer Tax
- Decision Type:
- ACTION
- Status:
- Adopted on Consent
- Wards:
- All
City Council Decision
City Council on July 23, 24, 25, 26, 27 and 30, 2018, adopted the following:
1. City Council authorize the Chief Financial Officer, in consultation with the City Solicitor, to negotiate and execute an extension of the agreement with Teranet Inc. for the collection of Municipal Land Transfer Tax for a term of 20 years with City option to renew for a further ten (10) years, effective February 1, 2019 on financial terms substantially as outlined in Confidential Attachment 2 to the report (June 18, 2018) from the Interim Chief Financial Officer and upon such other terms as may be acceptable to the Chief Financial Officer.
2. City Council direct that Confidential Attachment 1 to the report (June 18, 2018) from the Interim Chief Financial Officer be released upon execution of a renewed collection agreement with Teranet Inc. and Confidential Attachment 2 to the report (June 18, 2018) from the Interim Chief Financial Officer remain confidential as it pertains to positions and instructions to be applied to negotiations to be carried on by or on behalf of the City of Toronto and it contains financial information which could reasonably be expected to prejudice significantly the competitive position of Teranet Enterprises Inc.
Confidential Attachment 1 to the report (June 18, 2018) from the Interim 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 pertains to positions and instructions to be applied to negotiations to be carried on by or on behalf of the City of Toronto. Confidential Attachment 1 to the report (June 18, 2018) from the Interim Chief Financial Officer will be made public upon execution of a renewed collection agreement with Teranet Inc.
Confidential Attachment 2 to the report (June 18, 2018) from the Interim Chief Financial Officer remain confidential in its entirety in accordance with the provisions of the City of Toronto Act, 2006, as it pertains to positions and instructions to be applied to negotiations to be carried on by or on behalf of the City of Toronto and it contains financial information which could reasonably be expected to prejudice significantly the competitive position of Teranet Enterprises Inc.
Confidential Attachment - Confidential Attachments 1 and 2 - positions and instructions to be applied to negotiations to be carried on by or on behalf of the City of Toronto; Confidential Attachment 2 - financial information supplied in confidence to the City of Toronto, which, if disclosed, could reasonably be expected to prejudice significantly the competitive position of Teranet Inc.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2018/gm/bgrd/backgroundfile-117300.pdf
Confidential Attachment 1 - Contract Negotiation Considerations — Amended Service Agreement between the City of Toronto and Teranet Inc.
Confidential Attachment 2 - Proposed Financial Terms — Amended Service Agreement between the City of Toronto and Teranet Inc.
Background Information (City Council)
https://www.toronto.ca/legdocs/mmis/2018/cc/bgrd/backgroundfile-126611.pdf
GM29.17 - Extension of the Service Agreement for the Collection of Municipal Land Transfer Tax
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Confidential Attachment - Confidential Attachments 1 and 2 - positions and instructions to be applied to negotiations to be carried on by or on behalf of the City of Toronto; Confidential Attachment 2 - financial information supplied in confidence to the City of Toronto, which, if disclosed, could reasonably be expected to prejudice significantly the competitive position of Teranet Inc.
Committee Recommendations
The Government Management Committee recommends that:
1. City Council authorize the Interim Chief Financial Officer, in consultation with the City Solicitor, to negotiate and execute an extension of the agreement with Teranet Inc. for the collection of Municipal Land Transfer Tax for a term of 20 years with City option to renew for a further ten (10) years, effective February 1, 2019 on financial terms substantially as outlined in Confidential Attachment 2 to the report (June 18, 2018) from the Interim Chief Financial Officer and upon such other terms as may be acceptable to the Interim Chief Financial Officer.
2. City Council direct that Confidential Attachment 1 to the report (June 18, 2018) from the Interim Chief Financial Officer be released upon execution of a renewed collection agreement with Teranet Inc., and Confidential Attachment 2 to the report (June 18, 2018) from the Interim Chief Financial Officer remain confidential, as it pertains to positions and instructions to be applied to negotiations to be carried on by or on behalf of the City of Toronto, and contains financial information which could reasonably be expected to prejudice significantly the competitive position of Teranet Enterprises Inc.
Origin
Summary
Teranet Inc. (Teranet) is currently the City's authorized agent for the collection of the Municipal Land Transfer Tax (MLTT) using the Ontario Electronic Land Registration System under a service agreement that expires January 31, 2023.
This report recommends that the agreement be extended for a 20-year term effective February 1, 2019 with a City option to renew it for another ten (10) years, subject to a modest service fee adjustment as described in the Confidential Attachment 2.
Extending the agreement now, well in advance of the termination date, is recommended to provide long term cost predictability at rates that have declined significantly as a share of tax proceeds since introduction of the tax in 2008.
Background Information
https://www.toronto.ca/legdocs/mmis/2018/gm/bgrd/backgroundfile-117300.pdf
Confidential Attachment 1 - Contract Negotiation Considerations — Amended Service Agreement between the City of Toronto and Teranet Inc.
Confidential Attachment 2 - Proposed Financial Terms — Amended Service Agreement between the City of Toronto and Teranet Inc.