Agenda

The Deputy City Manager, Cluster B recommends that:

1.         City Council request Metrolinx to allocate the total Public Realm Amount (PRA) among the Eglinton, Sheppard and Finch rapid transit lines in proportion to the length of each line.

2.         City Council request Metrolinx to amend its current RFP for the Eglinton rapid transit project to include instructions to bidders to provide, as an evaluated element within the base scope of the project, as many of the following public realm improvements along Eglinton Avenue as are possible using the Public Realm Amount budget allocated to the project, in the following order of priority, and to provide a right to the City to determine whether to proceed with the public realm improvements proposed by the winning bidder: 

i.          Provision of streetscape elements identified in the approved Eglinton Environmental Assessment that exceed current City standards within the underground station reconstruction zones; 

ii.         Provision and maintenance of green trackway elements, comprising vegetation and ancillary features (e.g., drainage), along the portion of the LRT trackway between Victoria Park Avenue and Birchmount Road, where feasible and not precluded by the requirements for emergency vehicle access;

iii.        Provision of a protective feature to buffer on-street bicycle lanes from vehicle traffic lanes, that meets all of the following requirements:

a.         the section of bicycle lane provided with the protective feature comprises a minimum of three continuous kilometres along one side of the street, notwithstanding intersections and bridges;

b.         the section of bicycle lane provided with the protective feature is located between Brentcliffe Road and Victoria Park Avenue; and

c.         the protective feature (painted strip, rumble strip, etc.) is acceptable to the General Manager, Transportation Services and the Fire Chief/General Manager of Toronto Fire Services.

iv.        Provision of new or improved pedestrian and bicycle connections and entrances to Serena Gundy Park and Ernest Thompson Seton Park from Eglinton Avenue or Leslie Street in the vicinity of the Leslie LRT Stop;

v.         Construction of the approved Eglinton EA streetscape between the reconstruction zones at Avenue Road Station and Yonge-Eglinton Station to create a continuous length of approved EA streetscape on Eglinton Avenue from Avenue Road to Yonge Street; and

vi.        That any unused balance of the Public Realm Amount fund allocated to the Eglinton LRT after provision has been made for the five priority projects listed in i) through v) inclusive, be committed to projects included in the following list:

a.         Provision and maintenance of green trackway elements, comprising vegetation and ancillary uses (e.g., drainage), along the surface portion of the LRT trackway in locations that are not already specified;

b.         Provision of a protective feature to buffer on-street bicycle lanes from vehicle traffic lanes, along the surface portion of the LRT trackway where it is not already provided in the base scope of construction of the transit project; and

c.         Provision of new or improved pedestrian and bicycle connections and entrances to parks, ravines and public open spaces adjacent to the transit project in locations that are not already specified.  

3.         City Council authorize the Deputy City Manager, Cluster B, in consultation with the Director, Major Capital Infrastructure Coordination and Deputy City Manager and Chief Financial Officer as appropriate, for the Eglinton rapid transit project:

i.          to assist Metrolinx in developing the instructions to bidders and appropriate evaluation scoring;

ii.         to participate in the evaluation of the bids;

iii.        to determine whether the winning bidder's Public Realm Amount submission is fair and reasonable and provides good value to the City for the Public Realm Amount, and on that basis to determine whether to accept the winning bidder's Public Realm Amount proposal; and

iv.        if the determination is made to not accept the winning bidder's Public Realm Amount proposal, to negotiate alternative public realm improvements with Metrolinx that are consistent with the recommendations of this report.

4.         If the determination is made to accept the winning bidder's Public Realm Amount proposal for the Eglinton rapid transit project, City Council authorize the Deputy City Manager, Cluster B, to negotiate and enter into any agreements, amendments and renewals with Metrolinx as may be necessary, in accordance with the Master Agreement and the recommendations of this report, in respect of the use of the PRA in accordance with the winning bidder's submission.

5.         City Council direct the Chief Planner and Executive Director, City Planning Division and the Director, Major Capital Infrastructure Coordination to report to City Council on a priority list of projects for the Sheppard and Finch LRTs in a timely manner.

The purpose of this report is to receive direction from City Council on the recommended allocation of the Public Realm Amount that is funded by Metrolinx out of its capital budget for construction of the Rapid Transit Program. (Attachment 1)

The Master Agreement between the City, TTC and Metrolinx (executed in November 2012) prescribes the role of each party to plan, design and construct the Rapid Transit Program. As set out in the Master Agreement, Metrolinx is required to replace and restore the City's infrastructure, streetscape and public realm to City standards if those assets are disrupted by the Rapid Transit Program. 

The Master Agreement also provides for a Public Realm Amount (the "PRA") that will be used by Metrolinx to plan, design and construct discretionary improvements to the streetscape requested by the City. The discretionary improvements may exceed City standards or comprise new features, provided the improvements are located in the immediate vicinity of underground stations or along the at-grade sections of the transit corridors.

The Master Agreement defines the value of the Public Realm Amount as equivalent to 1.5% of the total construction cost of the Rapid Transit Program as defined in the Master Agreement, less certain deductions, including $10 million that Metrolinx intends to use for public amenities on Metrolinx property at the underground stations. The balance of the Public Realm Amount will have an aggregate value that may exceed $70 million.

This report recommends that the Public Realm Amount be allocated to streetscape and public realm improvements on Eglinton, Sheppard and Finch proportionally, based on the length of the respective transit lines.

Furthermore, the report advises City Council that it is appropriate and desirable for the Public Realm Amount be invested in streetscape and public realm improvements that can have a significant impact on the City as a whole, that can be enjoyed by residents and visitors from all parts of the City and distribute the Public Realm Amount as widely as possible across the designated transit corridors. Accordingly, the recommendations contained in this report would ensure that the Public Realm Amount allocated to the Eglinton transit project is invested with a cohesive vision.

In considering appropriate uses for the Public Realm Amount that are eligible for funding by Metrolinx, City Council can be informed by the Eglinton Connects Planning Study currently nearing completion.  Fundamental themes of the Eglinton Connects Study include balancing all forms of mobility, connecting neighbourhoods and natural valley systems to the rest of the city, and creating a green, beautiful metropolitan avenue. Although they have not been recently studied, the Sheppard and Finch LRT corridors would also benefit from these goals.

More specifically, the Eglinton Connects Study identified five elements that could be implemented on Eglinton Avenue (and the other LRT corridors) that would help achieve its vision and recommendations, and which would be eligible for Public Realm Amount funding in accordance with the Master Agreement:

i.          Construction and maintenance of a "green trackway" along at-grade sections of the transit corridors;

ii.         Construction of a protective buffer between proposed bicycle and traffic lanes along at-grade sections of the transit corridors;

iii.        Construction of connections between transit stations and stops, and adjoining parks, ravines and open spaces;

iii.        Construction of streetscape improvements that exceed previous City standards in the reconstruction zones at the underground stations (e.g., soil cells for tree planting); and

iv.        Construction of the approved EA road cross-section between Avenue Road Station and Yonge-Eglinton Station. 

These initiatives received strong support from the public in the consultation conducted as part of the Eglinton Study.

Metrolinx is currently seeking competitive bids from private consortia to finance, construct and maintain the Eglinton LRT project. To ensure that bidders are informed of the City's preferred use of the Public Realm Amount and to encourage bidders to maximize the deliverables that can be constructed using the Public Realm Amount budget, it is necessary to provide Metrolinx with a list of the City's desired streetscape and public realm improvements for the Eglinton LRT project to be financed by the Public Realm Amount, and the City's prioritization of such improvements. Accordingly, this report seeks direction from City Council on the range and ranking of projects for construction up to the limit of funds available through the Public Realm Amount.   Since Metrolinx has requested the City's desired list of Public Realm Amount funded improvements by May 8, 2014, Council direction is required before that date.

Metrolinx, with input from the City, will determine a scoring system to objectively determine differences between the bidders in the value-for-money that will be realized from the Public Realm Amount, based on demonstrated innovation and scope of the proposed work. In general, the bidder that is committed to deliver the greatest number of items from the priority list, and in a form that is acceptable to the City, would be delivering the greatest value-for-money and will therefore be awarded the highest number of relevant points. The bidders' attention to design and creativity in their proposals will also be reflected in the scoring. This approach creates an incentive for bidders to maximize the scope and quality of the streetscape improvements to be delivered from the Public Realm Amount fund.

Should the Public Realm Amount-financed scope of work that is proposed by the successful bidder be judged to not deliver good value to the City (possible because use of the Public Realm Amount is only one element in the overall evaluation of bids), the City would retain the right to refuse the proposal and engage in an alternate process to allocate the Public Realm Amount.  The alternate process would be a contract variation (amendment) process that the successful bidder must follow for all scope, schedule and budget changes during the construction period.

This report also recommends that appropriate staff report to Council at a future time on the priority list of Public Realm Amount projects for the Sheppard and Finch LRT projects.

The recommendations in this report have no financial impact.

The City Clerk and the City Solicitor recommend that:

1.         City Council authorize the retention of Ms. Priscilla Platt's new firm, Borden Ladner Gervais LLP, to provide independent advice and representation from time to time to Members of Council in relation to any proceedings before the Information and Privacy Commissioner of Ontario concerning access to records held by a Member of Council.

Due to the recent unexpected closing of the firm of Heenan Blaikie LLP, it is necessary to quickly make new arrangements for continued legal representation for individual Members of Council before the Information and Privacy Commissioner of Ontario ("IPC") respecting access requests for records held by them.  After reviewing potential options, it is recommended that the firm of Borden Ladner Gervais LLP, being the firm which Ms. Priscilla Platt has now joined, be retained for the purpose of allowing individual Members of Council legal advice and representation with respect to any IPC appeal of their records.

The recommended external counsel has competitive rates in keeping with the previous proposal accepted by the City.

The actual expenditure on outside counsel for Members of Council since 2012 is $66,663.84 and is reported annually by the City Clerk. Expenditures are paid from the Council General Expense Budget.

The Deputy City Manager and Chief Financial Officer recommends that:

1.         City Council approve the renewal of the following line of credits and capital loan guarantees:

            a.         The line of credit guarantee issued on behalf of the Canadian Stage Company (CanStage) to its financial institution in the amount of $730,000 (inclusive of all interest payable by CanStage), be renewed for a three year period commencing on November 1, 2014 and ending October 31, 2017;

            b.         The line of credit guarantee on behalf of the Young People's Theatre (YPT) in the amount of $175,000 (inclusive of all interest payable by YPT), be renewed for a three year period commencing on January 1, 2015 and ending December 31, 2017;

            c.         The capital loan guarantee on behalf of the Toronto Artscape Inc. (Artscape) in respect of the Distillery District Studios Project in an amount not to exceed $167,510 (inclusive of all interest payable by Artscape), be renewed for a three year period commencing on November 1, 2014 and ending October 31, 2017; and

            d.         The capital loan guarantee on behalf of the Toronto Artscape Inc. in respect of the Wychwood Barns Project in an amount not to exceed $2,979,538 (inclusive of all interest payable by Artscape), be renewed for a three year period commencing on June 16, 2014 and ending June 15, 2017.

2.         The City's Capital Loan Guarantee Policy and Direct City Loan Policy, as adopted by City Council on May 7, 2013, be amended to require that any capital fundraising plan proposed in respect of debt repayment for any new project for which a loan or loan guarantee is being sought include a plan for repayment of the loan amount by alternate means should fundraising prove to be insufficient to repay the loan, such plan to be to the satisfaction of the Deputy City Manager and Chief Financial Officer.

3.         City Council adopt the confidential instructions to staff in Attachment 1 – Confidential Information.

4.         City Council not authorize the public release of Attachment 1 – Confidential Information, as this attachment contains confidential information relating to litigation or potential litigation that could affect the City, until such time that the necessary agreements have been executed.

This report provides an annual update on the City's loan and loan guarantee portfolio. 

The City currently guarantees three operating lines of credit and eight capital loans under Council approved policies for line of credit and loan guarantees for cultural and community-based organizations.  In addition to the guarantees, the City provides seven direct loans to City agencies and corporations, and one to an external organization.  Three capital loans with a City guarantee provided to not-for-profit organizations were successfully paid in full during 2013 in the combined amount of $6.6 million.  Another capital loan to BIXI in the amount of $3.65 million which was guaranteed by the City was repaid by the City and funded through revenues from the Astral Street Furniture contract.

This report recommends an extension of two line of credit guarantees which would otherwise expire at the end of 2014. These lines of credit are in good standing, and the organizations have achieved a reduction in their line of credit requirement.  This report also recommends term extensions to two capital loan guarantees, which are also in good standing.  Another organization with a capital loan guarantee with the City (Evergreen Brickworks) has requested that the terms of the guarantee be amended so as to provide a longer repayment plan.  A staff report that addresses this request is scheduled for later this summer.

As at December 31, 2013, there were:

- 3 outstanding operating line of credit guarantees with a maximum exposure of $4.0 million,

- 8 outstanding capital loan guarantees in the amount of $61.7 million, and

- 8 direct city loans with an outstanding balance of $72.0 million.

A loan guarantee is considered to be a financial commitment of the City, and impacts the City's borrowing capacity and potentially its credit rating. However, there is no direct cost to the City for providing the guarantee unless the borrower defaults on its obligation and the City cannot recover any funds paid out under the guarantee.

As of December 31, 2013, one loan (Just for Laughs) in the amount of $500,000 remains in default, while another loan in the amount of $122,000 was written off during 2013 (Squirrels Nest Child Care Centre). A third loan (BIXI) for which the City provided a guarantee was settled at the end of 2013 in avoidance of default by a payment of $3.65 million by the City funded through revenues from the Astral Street Furniture contract.

As part of this year's review, one organization (Toronto Symphony Orchestra) with a line of credit in the amount of $3 million continues to experience financial challenges, and is undertaking cash management and debt reduction initiatives in this regard and has been able to maintain its loan in good standing. A second organization with a capital loan with an outstanding balance of $4.8 million (Evergreen Brickworks) is working with the City to identify appropriate amendments to the loan term, which will be the subject of a report to City Council later this year. This loan is currently in good standing.

The total value of loans or loan guarantees for which loan payments are in default or past due is $500,000 as identified in this report, or approximately 0.4% of the portfolio value, as shown in the following Chart.

Total Value of Loans and Loan Guarantees

The quantum of the financial risk associated with the other loans and loan guarantees is difficult to establish for the reason that default, mitigation and recovery processes can vary from project to project and actual losses cannot be determined until such processes come to a conclusion.  With regular monitoring, it is possible to identify financial risks earlier and to take action to avoid or mitigate potential losses.

A Doubtful Loan Guarantee Reserve was established as part of last year's review, with initial funding of $160,000 from recovered amounts from previous bad loans.  An additional amount of $61,480 is expected to be recovered from a previous loan default through a clawback of grant allocation to the Toronto Arts Council over the next two years in the amount of the grant that would otherwise have been made to the defaulting organization.  The Deputy City Manager and Chief Financial Officer reviews annually the adequacy of funds in the Doubtful Loan Guarantee Reserve and will make any necessary adjustments where the cost or risk of loss under a loan guarantee or direct loan is determined to be likely and should be recognized.

The Budget Committee recommends to the Executive Committee that:

1.         City Council authorize an increase of $0.870 million gross and $0 net to the 2014 Approved Operating Budget of Shelter, Support and Housing Administration to include the  2014 funding requirements for the Toronto Housing Allowance program.

2.         City Council authorize the General Manager, Shelter, Support and Housing Administration, to negotiate and enter into the necessary agreements with the Province, Ministry of Finance in a form satisfactory to the City Solicitor to administer the 2014 housing allowance funding  requirements under the terms of the new Housing Allowance Program.

In October 2013, Council approved a one-time transfer of $3.700 million to the new Housing Allowance Reserve, XQ1112 established to facilitate the delivery of a new time-limited housing allowance program to assist up to 260 homeless and at-risk seniors' households in Toronto.

Drawing on the proven program delivery model in place for the Toronto Transitional Housing Allowance Program (TTHAP), staff will enter into an agreement to administer a new time-limited housing allowance program through a partnership with the Ministry of Finance.

This report seeks Council approval to increase the 2014 Approved Operating Budget for Shelter, Support and Housing Administration (SSHA) by $0.870 million gross and zero net, funded from the Housing Allowance Reserve. The reserve was established to hold housing allowance funding for individuals at risk of homelessness. This adjustment is required to fund the time-limited housing allowance program to support homeless and at-risk seniors' households.

The report also requests authority to negotiate and enter into the necessary agreements with the Province, Ministry of Finance, to administer the housing allowances as described in the Issues Section under Program Administration.

There will be no net impact to the City.

In October 2013, Council approved one-time transfer of $3.700 million to the new Housing Allowance Reserve, XQ1112. The reserve was established to facilitate the delivery of a new time-limited housing allowance program and assist up to 260 homeless and at-risk seniors' households in Toronto. Funding for this time-limited program is available from the 2013 allocation of the under-spending from the Housing Stabilization Fund, which commenced in 2013. 

The 2014 gross budget adjustment of $0.870 million will be funded by a draw from the Housing Allowance Reserve, XQ1112, which currently has a balance of $3.700 million. Funding will be transferred from SSHA to the Province for administration by the Ministry of Finance.

Housing Allowance program impacts for 2015 and beyond will be reported through the City's annual operating budget process, with funding projections based on anticipated client needs.

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

The Employee and Labour Relations Committee recommends to the Executive Committee that:

1.         City Council receive the 3rd Quarter and Year-to-Date 2013 Occupational Health and Safety Report.

This report provides information on the status of the City’s health and safety system, specifically on activities, priorities and performance during and up to the end of the third quarter of 2013.

There was a 16.2% decrease in the number of lost time injuries (LTIs), a 38.9% decrease in the number of recurrences and a 0.7% increase in the number of medical aid only injuries during the first three quarters of 2013 relative to 2012. 

WSIB invoiced costs for the first three quarters of 2013 were $18.1 million. This was $1.5 million lower than for the same time period in 2012. This decrease was achieved in part as a result of a reduction in firefighter cancer costs. The overall WSIB costs include a significantly higher Administration rate for 2013 (35.8% from 27.6%) as well as an adjustment to the 2012 administration rate invoiced to the City in July 2013 in the amount of $792,000.

There are no financial impacts to this report.

The Employee and Labour Relations Committee recommends to the Executive Committee that:

1.         City Council receive the 4th Quarter and End of Year 2013 Occupational Health and Safety Report for information.

This report provides information on the status of the City’s health and safety system, specifically on activities, priorities and performance during the fourth quarter of 2013 and health and safety performance throughout the year.

There was a 10.8% decrease in the total number of lost time injuries and a 34.1% decrease in the number of recurrences in 2013 relative to 2012.  There was an increase of 0.9% in medical aid injuries. WSIB invoiced costs for 2013 were approximately $577,000 lower than in 2012. The City's continuous improvement efforts have resulted in its annual costs for WSIB to be $6.6 million lower in 2013 than 2009.  This improvement reflects reduced injury severity and the effectiveness of return-to-work efforts.  In 2013, the WSIB cost decrease was achieved despite a countervailing increase in the WSIB's administration rate from 27.6 % in 2012 to 35.8% in 2013.

There are no financial impacts to this report.

The Talent Blueprint actions and its activities will utilize current funding resources, wherever possible, and any additional financial impacts needed beyond current resources will be submitted through the annual budget approval process. The Talent Blueprint's actions include conducting an independent third party survey to measure and validate the level of employee engagement to assist in continuous improvement efforts regarding program and service delivery, customer service and productivity. The baseline survey benchmark would be conducted in 2014 at a cost of $195,000 that can be funded from the Innovation Reserve Fund. Funds are available in Account No.XR1713.

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

The Employee and Labour Relations Committee recommends that:

1.         The Executive Committee receive the item for information.

This report presents the results of discussions undertaken with the City’s benefits carrier, Manulife Financial, to explore initiatives to further manage drug costs within the context of the City’s traditional benefit plans.  Additionally, this report summarizes the success of the City’s benefits cost containment initiatives implemented over the past five (5) years. 

Since 2009, the City has taken many positive steps to identify and implement initiatives that have enabled the City to significantly reduce its actual benefit plan costs year-over-year and achieve much better results than currently being achieved in the industry on average.  While the Canadian Industry Average continues to reflect increases in 2013 for both health (12% increase) and dental (8% increase), the City experienced decreases in 2013 for active employees and retirees of -6.5% for health and -4.0% for dental.

In addition, the concerted effort over the last five (5) years to reduce benefit costs is also having a positive impact on the post-retirement portion of the City's long term employee benefit liabilities.  Post-retirement benefit liabilities have decreased by $169.0 million, or 19.7% since 2011. 

Continuing to build on these successes, the City will be implementing in the latter part of 2014 a Preferred Provider Network (PPN) of pharmacies that employees and retirees can voluntarily access for prescription drugs.  Additionally, City staff will continue to partner with industry experts and Manulife Financial (the City's benefits carrier) in monitoring benefit trends and costs in 2014 and 2015 (both within the City and across the industry) to help identify further areas for improvement and emerging best practices.  Staff will report back to the Employee and Labour Relations Committee by Q3 2015.

There are no financial implications associated with this report.

Table 1, below, compares the City’s benefit costs from 2011 to 2013. In 2013, the City spent approximately $202.5 million, as compared to $206.5 million in 2011, or a decrease of $4.0 million. These benefit costs include Health, Dental, Group Life Insurance and Long Term Disability (including administrative fees and taxes) for all Active employees and Retirees (approximately 25,156 active employees and 9,637 retirees).

Active Employees: Based on a number of cost containment initiatives (including both administrative as well as plan design changes) implemented for active employees, the City achieved an overall decrease of $7.3 million (or -4.0%) since 2011.

Retirees: The cost of retiree benefits has increased by $3.3 million (13.5%). 

Overall: The City has achieved a decrease in its total benefit costs of $4.0 million (or

-1.9%) since 2011.

Table 1

Benefits Costs for Active Employees and Retirees (after administration fees & taxes)

 By Benefit Type:   2011 to 2013

*1:  Includes Group Life Insurance (GLI), Accidental Death & Dismemberment (AD&D), Line of Duty of Death (LODD)

In addition to the cost containment initiatives implemented in the benefit plan design, the City has also taken steps to reduce the administrative fees with the benefits carrier and to reduce the long term liabilities associated with the sick leave benefits and post retirement benefits.  Table 2, below, provides a summary of the overall cost savings and liability reductions achieved over the last few years.

Table 2

Summary of Overall Cost Savings and Liability Reduction

*1:  Savings of $21.6 million for 2012 to 2013, plus additional savings of $32.5 million for 2014 to 2016 (inclusive).  See Council report GM3.8, May 17, 18, 19 2011 Council Meeting; http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2011.GM3.8

*2:  See E&LR Report, EL20.5. Employee & Labour Relations Committee meeting May 19, 2010:  http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2010.EL20.5

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

The Chair, Toronto Police Services Board recommends that:

1.         The Executive Committee receive this report for information.

The purpose of this report is to provide the Executive Committee with the Toronto Police Service’s (Service) 2013 Annual Hate/Bias Crime Statistical Report.

There are no financial implications with regard to the receipt of this report.