Agenda

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Notice to people writing or making presentations to the General Government and Licensing Committee: The City of Toronto Act, 2006 and the City of Toronto Municipal Code authorize the City of Toronto to collect any personal information in your communication or presentation to City Council or its committees. The City collects this information to enable it to make informed decisions on the relevant issue(s). If you are submitting letters, faxes, e-mails, presentations or other communications to the City, you should be aware that your name and the fact that you communicated with the City will become part of the public record and will appear on the City’s website. The City will also make your communication and any personal information in it - such as your postal address, telephone number or e-mail address - available to the public, unless you expressly request the City to remove it.

Many Committee, Board, and Advisory Body meetings are broadcast live over the internet for the public to view. If you speak at the meeting you will appear in the video broadcast. Video broadcasts are archived and continue to be publicly available.

If you want to learn more about why and how the City collects your information, write to the City Clerk's Office, City Hall, 100 Queen Street West, Toronto ON M5H 2N2 or by calling 416-397-4592. 

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Declarations of Interest under the Municipal Conflict of Interest Act

Speakers/Presentations - A complete list will be distributed at the meeting

Communications/Reports

Election of the Vice Chair of the General Government and Licensing Committee under Municipal Code Chapter 27, Council Procedures, Appendix A-2, for a term of office ending December 31, 2020, and until a successor is appointed.

The Chief Information Officer and the Chief Purchasing Officer recommend that:

1.  City Council authorize the Chief Information Officer to negotiate and execute an amending agreement with Xerox Canada Limited for a period of six months from January 1, 2019 to June 30, 2019, and increase the value of the contract by $980,000, net of all taxes and applicable charges, under the same pricing, terms, and conditions of the existing agreement and in a form satisfactory to the City Solicitor.

The purpose of this report is to seek authority to extend the term of existing Blanket Contract Number 47017237 with Xerox Canada Limited for the supply of multi-function devices and printers and related maintenance and support services from January 1, 2019, for a period of six months ending June 30, 2019. Additional funds are required in the amount of $980,000 net of all taxes, as a result of this extension to the contract.

The Shared Services Executive Steering Committee mandated a joint procurement between the City of Toronto and all Agencies and Corporations for a new workgroup print services contract in order to leverage economies of scale and secure best pricing on supplies and services on December 15, 2017. A project team consisting of representatives from eight Agencies have worked together to ensure that the Request for Proposal (RFP) captured all of the participants requirements and published the RFP on November 16th, 2018. The RFP was seeking a vendor who would supply new multi-function devices and printers, as well as provide support for any legacy multi-function devices and printers.

During the RFP question period, concerns were brought forward by some proponents in regards to the support of the legacy equipment. The City, in consultation with the participating Agencies, has since decided to cancel the RFP and separate the procurement of new Equipment and Managed Print Services and for the support of Legacy Equipment. This approach was discussed with the Fairness Monitor and they are in agreement. The new procurements will be issued in early January 2019. 

The term extension is required to ensure all City Divisions will continue to receive consumables supplies for existing multi-function devices and printers, maintenance, and related support services with no service interruption, while the joint procurement process is being undertaken.

It is expected that the extension cost will require additional funding of up to $980,000, net of all taxes and applicable charges, $1,107,400 including Harmonized Sales Tax (HST) and all applicable charges ($997,248 net of HST recoveries). The current contract will increase from $19,990,501.78 to $20,970,501.78, net of all taxes. Funding for this is available in all Program Area's respective 2019 Operating Budget Submissions (General Ledger 4473) for cost per page charges; and in the 2019 Capital Budget Submission for the Information and Technology Division in the Capital Desktop Sustainment Account (CIT702-01-05) for managed fees and emergency replacement equipment.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The Interim General Manager, Facilities Management, and the Chief Purchasing Officer recommend that:

1.  City Council receive this report for information.

This report advises City Council, pursuant to Chapter 195 of the Toronto Municipal Code (Purchasing By-law, Section 195-7.4), of the non-competitive contract with Steelcore Construction Limited to procure emergency construction services for the completion of shelter infrastructure.

Facilities Management is managing a project to convert a former motel at 3306 Kingston Road into a fully functional shelter for Shelter Support and Housing Administration program requirements. For this purpose, award of Tender Call Number 276-2017 was made to Steelcore Construction Limited on January 17, 2018. During renovations, it was determined that the site required extensive remedial work due to site conditions that could not have been foreseen prior to purchase. The unforeseen remedial work significantly increased the scope of the project, requiring the addition of contract value.

To accommodate this unforeseen increase in scope, an emergency non-competitive contract was issued to the general contractor (Steelcore Construction Limited, Purchase Order 6048109) on November 28, 2018 in the amount of $3,250,000 ($3,307,200 net of Harmonized Sales Tax recoveries).

The issuance of a contract to complete planned renovation work and unforeseen remedial work was deemed a matter of extreme urgency necessary to address an immediate risk to the health, safety, and security of the City's residents. Once work is complete, the building will accommodate 95 residents, including 60 elderly individuals currently residing at Birchmount Residence at 1673 Kingston Road.

The Kingston Road property is planned for redevelopment. The City cannot extend the lease for Birchmount Residence and is required to vacate the site by the end of February 2019.

A non-competitive contract (Purchase Order 6048109) was issued on November 28, 2018 for $3,250,000 ($3,307,200 net of Harmonized Sales Tax recoveries) under the emergency provision of the Purchasing By-law and, therefore, adoption of this report will result in no further financial implications.

Funding for the additional work is available within the 2018-2027 Council Approved Capital Budget and Plan for Shelter, Support and Housing Administration under capital project CHS040-03.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The Interim Controller recommends that:

1.  City Council pass a By-law pursuant to Section 252 of the City of Toronto Act, 2006, providing authority to:

a.  Enter into a municipal capital facility agreement at 105 Fourth Street with the New Toronto Seniors Centre, which leases approximately 3,250 square feet of exclusive space and a number of associated parking spaces (the "Leased Premises") from the Toronto Community Housing Corporation; and

b.  Exempt the Leased Premises from taxation for municipal and school purposes, which tax exemption is to be effective from the latest of (i) the commencement date of the lease, (ii) the date the municipal capital facility agreement is entered into, and (iii) the date the tax exemption By-law is enacted.

2.  City Council pass a resolution that the above municipal capital facility is for the purposes of the City and is for public use.

3.  City Council direct the City Clerk to give written notice of the By-law to the Minister of Finance, the Municipal Property Assessment Corporation, the Toronto District School Board, the Toronto Catholic District School Board, the Conseil Scolaire de District du Centre-Sud-Ouest, and the Conseil Scolaire de District Catholique Centre-Sud.

This report seeks Council's authority for the adoption of the necessary By-law to designate a portion of the property owned by the Toronto Community Housing Corporation and occupied by the New Toronto Seniors Centre at 105 Fourth Street as a municipal capital facility, and to provide a property tax exemption for municipal and education purposes. The municipal capital facility agreement will provide an exemption for 3,250 square feet of space and the associated parking spaces currently occupied by the New Toronto Seniors Centre.

The New Toronto Seniors Centre is located in the Lakeshore Boulevard West and Islington Avenue area and offers recreational programming for older adults. The seniors centre offers a wide range of activities, including fitness, sports, cards, and arts and crafts. The Centre, which is operated and funded by the City's Parks, Forestry and Recreation Division, is geared to providing programs that suit the needs of the community.

The Leased Premises located at 105 Fourth Street are owned by the Toronto Community Housing Corporation (TCHC). Although this property is owned by TCHC and is exempt from taxation, all non-residential leased space is subject to taxation. Accordingly, the New Toronto Seniors Centre is subject to taxation, without the municipal capital facility. The annual property taxes on the Leased Premises located at 105 Fourth Street for the 3,250 square feet of space and the associated parking spaces are estimated at approximately $15,103, comprised of a municipal portion of $7,791 and a provincial education portion of $7,312, based on the 2018 Current Value Assessment and 2018 tax rates.

Given this space is leased by the City's Parks, Forestry and Recreation Division, the decrease in municipal tax revenue will be offset by a corresponding reduction to the annual property tax expenditure included in the lease payment. As shown in Table 1, providing a property tax exemption for the 3,250 square feet of space and the associated parking spaces at 105 Fourth Street, will result in net savings for the City of Toronto of $7,312 per year, representing the provincial education share of taxes that would no longer be payable once the exemption takes effect.

Table 1: Property Tax Allocation for 105 Fourth Street

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The Interim Controller recommends that:

1.  City Council pass a By-law pursuant to Section 252 of the City of Toronto Act, 2006, providing authority to:

a.  Enter into a municipal capital facility agreement with the owner of the property, Vivian Reiss Living Limited, which leases 3,417 square feet of space in the property known as 124 Merton Street (the "Leased Premises") to the Toronto Transit Commission used for telecommunications, transit, and transportation systems; and

b.  Exempt the Leased Premises from taxation for municipal and school purposes, with the tax exemption being effective from the latest of (i) the commencement date of the lease, (ii) the date the municipal capital facility agreement is entered into, and (iii) the date the tax exemption By-law is enacted.

2.  City Council direct the City Clerk to give written notice of the By-law to the Minister of Finance, the Municipal Property Assessment Corporation, the Toronto District School Board, the Toronto Catholic District School Board, the Conseil Scolaire de District du Centre-Sud-Ouest, and the Conseil Scolaire de District Catholique Centre-Sud.

This report seeks Council's authority for the adoption of the necessary By-law to designate a portion of the property owned by Vivian Reiss Living Limited and occupied by the Toronto Transit Commission (TTC) at 124 Merton Street as a municipal capital facility (MCF) and to provide an exemption for municipal taxes and education taxes. The MCF agreement will provide an exemption for the space currently occupied by the TTC of approximately 3,417 square feet of space.

The privately-owned space at 124 Merton Street was selected as the TTC's Central Construction Field Office, housing staff that are managing six TTC construction contracts, because it is centrally located within the City of Toronto, is in close proximity to TTC's head office, and because there are no comparable facilities available within either the City’s or the TTC’s owned or leased property portfolios, that meet the TTC's specific needs. On October 18, 2016, the TTC staff report, "Lease of Office Space for Central Construction Office - 124 Merton Street," received concurrence from the TTC Finance and Administration Committee.

The annual property taxes on the 3,417 square feet of space (currently taxable) occupied by the Toronto Transit Commission (TTC) are estimated at approximately $17,903, comprised of a municipal portion of $9,785 and a provincial education portion of $8,118, based on the 2018 Current Value Assessment and 2018 tax rates.

As shown in Table 1 below, providing a property tax exemption for the 3,417 square feet of space at 124 Merton Street will result in a net annual reduction in property tax revenue to the City of approximately $9,785, representing the municipal portion of taxes that are currently payable that will no longer be collected once the Leased Premises are designated as a municipal capital facility. The provincial education portion of property taxes of $8,118 will no longer be required to be remitted to the Province once the exemption for the Leased Premises takes effect.

Table 1: Financial Implication of Property Tax Exemption - 124 Merton Street

The resulting impact will be a reduction in property tax revenues to the City of Toronto and reduced expenditures (lower lease payments) for the TTC.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The Acting Director, Real Estate Services recommends that:

1.  City Council grant an exemption from the requirement to charge late payment fees of 15 percent per year for outstanding receivable balances and returned cheque fees (currently $40 per returned cheque) under the lease to Her Majesty the Queen in Right of Ontario, as represented by the Minister of Infrastructure (the "Tenant"), for space at Union Station for the promotion and marketing of tourism in Ontario.

Infrastructure Ontario and Lands Corporation, on behalf of Her Majesty the Queen in Right of Ontario as represented by the Minister of Infrastructure, has been negotiating a lease agreement with the City for space at Union Station to be used for the promotion of tourism in Ontario and it has advised that it cannot agree to pay interest on late payments or returned cheque fees, as it does not have Treasury Board approval to do so, as required under the Financial Administration Act. Accordingly, this report seeks an exemption from the requirement to charge late payment fees and returned cheque fees under the lease.

There is no immediate financial impact as a result of this report. The financial impact of exempting the Tenant from the late payment and returned cheque fees will only be realised if the Tenant misses a rent payment, or if there are insufficient funds in the Tenant's bank account from which rent cheques are drawn. Neither of these events have occurred to date in respect of the Tenant's ongoing occupancy of space at Union Station. As such, the likelihood of foregone interest and fees is low. By way of example, an unpaid rent payment for the entire 10-year term of the lease would result in a maximum loss to the City of interest totalling $36,097.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The Acting Director, Real Estate Services recommends that:

1.  City Council authorize the City to enter into a Lease with RRVP Markington Incorporated for a 10-year term, substantially on the terms and conditions as set out in Appendix B and on such other or amended terms and conditions as may be acceptable to the Deputy City Manager, Corporate Services or his or her designate and in a form acceptable to the City Solicitor.

2.  City Council authorize the Deputy City Manager, Corporate Services or his or her designate to administer and manage the Lease, including the provision of any consents, approvals, waivers, notices, and notices of termination, provided the Deputy City Manager, Corporate Services, may, at any time, refer consideration of such matters to City Council for its determination and direction.

In May 2016, the City and RRVP Markington Incorporated (the "Landlord") entered into a conditional lease proposal dated February 22, 2016 (the "Lease Proposal") for space at 3660 Kingston Road, Unit K1 (the "Premises"), which was later authorized at the July 12, 13, 14, and 15, 2016 City Council meeting.

Subsequently, in the Lease Proposal, the City and the Landlord negotiated further amendments to the Lease, and the Landlord agreed to perform the leasehold improvement work at the City's cost, provided that the City pay the Landlord's supervision and overhead cost.

This report seeks approval to incorporate the new negotiated terms into the Lease, including the Landlord's agreement to construct the leasehold improvements, the Landlord's supervision and overhead cost, and the methodology for paying the cost of leasehold improvements, amongst other negotiated changes.

In Toronto Employment and Social Services' (TESS) past transactions, TESS often had the landlord perform the fit-up and reimbursed the landlord through a combination of lump sum payment and/or amortized the payment over the term of the lease, as it is often more economical and efficient. 

The estimated cost of the leasehold improvements is $4.8 million, with the Landlord's leasehold improvement allowance of $30 per square foot covering the first $754,290.

The Landlord's supervision and overhead fee is $100,000 plus Harmonized Sales Tax (HST). Given the magnitude of the fit-up and the amount of time spent or expected to be spent by the Landlord, Real Estate Services/Facilities Management/TESS are of the view that the supervision and overhead costs are commercially reasonable and in line with industry standards.

As TESS has sufficient funds available, paying the Landlord upfront will avoid the $2.4 million in interest payments that would accrue if the costs were amortized over the term of the Lease at an interest rate of 10 percent.  

Therefore, the total cost to the City over a term of 10 years is $10,298,830.68 plus HST ($10,480,090.09 net of HST recoveries). If the two options to extend for five years each were exercised, the total cost to the City over a term of 20 years will be $17,416,323.70 (net of HST recoveries). See Appendix C attached for details on annual cost to the City.  

Funding is available in the 2018 Council Approved Operating Budget for Toronto Employment and Social Services under cost centre C01204. Future year expenditures will be referred to future year budget process.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The Executive Director, Municipal Licensing and Standards recommends that:

1.  The General Government and Licensing Committee receive this report for information.

In 2015, Municipal Licensing and Standards (MLS) began modernizing business licensing to better reflect the current and evolving business environment to provide tools that promote compliance, to develop efficiencies, and to reduce regulatory burden. This transition is rooted in the City’s regulatory purpose of public safety and consumer protection and moves the City to a risk-based licensing framework.

Due to the changing nature of businesses and the number of existing business licence categories, the review of business licensing is being conducted in stages. Work completed to date includes the removal of obsolete definitions in Chapter 545, Licensing (2015), the creation of Chapter 546, Licensing of Vehicles-for-Hire (2016), the review of Tow Truck regulations (2017), and the creation of Chapter 547, Licensing and Registration of Short-term Rentals (2017). It also includes the business transformation of licensing, such as the modernization of operational processes and technology.

Next phases include: update and review of the Vehicles-for-Hire By-law; review of Payday Lending; review of licensing requirements for Bars, Restaurants, and Nightclubs; and review of Body Rub Parlours and Holistic Centres, expected throughout 2019. MLS will also review Chapter 545, Licensing, to streamline and simplify processes, reduce duplication, modernize licence categories and requirements, and improve overall readability, with a report expected in the fourth quarter of 2019.

This report provides an overview of work completed to date as well as next steps for the planned reviews. The work plan continues to:

-  Streamline, simplify, and modernize operational processes to reduce red tape and regulatory burden, while ensuring consumer protection and public health and safety objectives are met;

-  Modernize business licensing requirements and processes to better meet and adapt to today’s evolving and emerging businesses; and

-  Move to a risk-based approach to business licensing.
 

Staff have consulted with Legal Services in the preparation of this report.

There are no financial implications beyond what has already been approved in the current year's budget.

The comprehensive review of business licensing is expected to result in streamlining and modernization of licence categories and processes. Future proposals to amend related Municipal Code Chapters may result in financial implications, which will be provided in the reports expected throughout 2019.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

I am writing to you today as Chair of the General Government and Licensing Committee to ask that you add an item to your meeting on Monday, January 14, 2019.

As I'm sure you are aware, a woman died tragically overnight in the Bloorcourt Village area in a clothing donation bin - this is the eighth such death across Canada.

While the police investigation into this incident is ongoing, the City of Toronto does license clothing drop boxes - all clothing drop boxes placed on private or public property must display a permit - so I believe we must take action now. I believe the municipal government has a duty to make sure proper rules are in place to make sure the drop boxes in our City are safe.

I understand that the City's Municipal Licensing and Standards Division is currently undertaking a review of the Clothing Drop Box By-law, but that the report isn't expected until September 2019.

Therefore, I would ask that the Committee direct staff to speed up this review immediately with the goal of reporting back as soon as possible on any changes that are necessary to the City's existing rules to keep people safe and instruct staff to take any immediate actions needed, during the course of the review, to increase safety around these bins.

I would hope that review will focus on three questions:

1.  Most importantly, are these boxes safe to have in our community and what can be done to ensure a similar incident doesn't happen again?

2.  Recognizing that many of these boxes help charities and help re-use clothing rather than these items being tossed in landfills, is this the best way to collect clothing in 2019?

3.  Is there a better way to guide the locations of these boxes?

Thank you and the Committee for acting quickly on this matter.