Item - 2019.GL10.8

The General Government and Licensing Committee recommends that:

1.  City Council authorize the General Manager, Toronto Water, and/or the Chief Engineer and Executive Director, Engineering and Construction Services, in consultation with the Executive Director, Corporate Real Estate Management, to approve the payment of compensation for the purpose of securing property rights to implement a project funded by Toronto Water, provided that:

a.  such compensation is paid pursuant to an agreement otherwise authorized and executed in accordance with Item EX27.12, City-Wide Real Estate - Delegated Authorities Framework and Transition Plan, as amended or codified; and

b.  such authority is exercised in accordance with the confidential instructions contained in Confidential Attachment 1 to the report (November 29, 2019) from the Executive Director, Corporate Real Estate Management, and the General Manager, Toronto Water.

2.  City Council amend the existing delegated approval and signing authorities adopted by City Council on October 2, 3, and 4, 2017 in Item EX27.12, City-Wide Real Estate - Delegated Authorities Framework and Transition Plan, as follows:

a.  repeal and replace the existing General Conditions (E) and (F) with the following General Conditions:

(E)  Property interests are to be based on appraised market value and no interest shall be granted for an amount less than the appraised market value, nor additional compensation paid, unless specifically authorized by City Council.

(F)  Authority to approve any transaction is subject to statutory anti-bonusing provisions.

3.  City Council direct that the confidential information contained in Confidential Attachment 1 to the report (November 29, 2019) from the Executive Director, Corporate Real Estate Management, and the General Manager, Toronto Water, remain confidential in its entirety, as it pertains to an approach to be applied to negotiations to be carried on by, or on behalf of, the City of Toronto.

4.  City Council authorize the City Solicitor, in consultation with the City Clerk, to introduce the necessary Bill in Council to amend the City of Toronto Municipal Code to include the delegated authorities of staff in Real Estate Matters, as approved by City Council, and as amended from time to time.

Toronto Water has over 16,600 kilometers of linear underground infrastructure, the majority of which is old and requires replacement and rehabilitation. Toronto Water has allocated over $5.5 billion in their 10 Year Capital Plan to replace, rehabilitate, and add linear underground infrastructure located across the City.

To facilitate timely construction of critical Toronto Water capital projects, including the State of Good Repair projects, staff recommend that City Council authorize Toronto Water and Engineering and Construction Services, working with Corporate Real Estate Management, to approve the confidential instructions set out in Confidential Attachment 1. Staff further recommend that City Council amend the current delegated authority for real estate transactions to permit transactions involving this approach to proceed, where applicable.

The purpose of this report is to authorize staff to submit a Bill to Council to codify the existing delegated real estate authorities of City Officials. No change to existing or recommended real estate delegation is proposed in this report.