Agenda

- O Canada

- Moment of Silence

- Declarations of Interest under the Municipal Conflict of Interest Act

City Council will confirm the Minutes from the meeting held on June 7, 8 and 9, 2016.

Deferred Committee Items:

Toronto and East York Community Council Item TE15.78

Report of the Executive Committee from Meeting 16 on June 28 and 29, 2016

Submitted by Mayor John Tory, Chair

Report of the Audit Committee from Meeting 6 on July 4, 2016

Submitted by Councillor Chin Lee, Chair

Report of the Board of Health from Meeting 13 on July 4, 2016

Submitted by Councillor Joe Mihevc, Chair

Report of the Civic Appointments Committee from Meeting 12 on July 5, 2016

Submitted by Deputy Mayor Denzil Minnan-Wong, Chair

Report of the Community Development and Recreation Committee from Meeting 13 on June 23, 2016

Submitted by Councillor James Pasternak, Chair

Report of the Economic Development Committee from Meeting 13 on June 22, 2016

Submitted by Councillor Michael Thompson, Chair

Report of the Government Management Committee from Meeting 13 on June 13, 2016

Submitted by Councillor Paul Ainslie, Chair

Report of the Licensing and Standards Committee from Meeting 12 on June 27, 2016

Submitted by Councillor Cesar Palacio, Chair

Report of the Planning and Growth Management Committee from Meeting 13 on June 15, 2016

Submitted by Councillor David Shiner, Chair

Report of the Public Works and Infrastructure Committee from Meeting 14 on June 20, 2016

Submitted by Councillor Jaye Robinson, Chair

Report of the Striking Committee from Meeting 10 on July 5, 2016

Submitted by Deputy Mayor Denzil Minnan-Wong, Chair

Report of the Etobicoke York Community Council from Meeting 15 on June 14, 2016

Submitted by Councillor Mark Grimes, Chair

Report of the North York Community Council from Meeting 15 on June 14, 2016

Submitted by Councillor Maria Augimeri, Chair

Report of the Scarborough Community Council from Meeting 15 on June 14, 2016

Submitted by Councillor Chin Lee, Chair

Report of the Toronto and East York Community Council from Meeting 17 on June 14, 2016

Submitted by Councillor Mike Layton, Chair

New Business and Business Previously Requested submitted by City Officials

Members of Council may file petitions.

Various presentations and announcements will be made at the City Council meeting.

City Council will review the Order Paper.

The Toronto and East York Community Council recommends that:

1.  City Council request the Chief Planner and Executive Director, City Planning, in consultation with the City Solicitor, to report directly to the May 3 and 4, 2016 meeting of City Council with respect to whether the workshop spaces at 48 Abell Street should be acquired.

The Executive Committee recommends:

SmartTrack

1.  City Council approve the following components which comprise the SmartTrack project scope, and request the Province of Ontario and Metrolinx to partner with the City of Toronto and the Toronto Transit Commission, to complete the remaining technical and planning analysis and undertake any required Environmental Assessment/Transit Project Assessment Process:

a.  SmartTrack/Regional Express Rail (RER) Integration scenario with up to six new stations located at Finch, Lawrence, Gerrard and Unilever on the Stouffville/Lakeshore East GO corridors and Liberty Village and St. Clair West on the Kitchener GO corridor; and

b.  Eglinton West LRT extension with between 8 to 12 stops between Mount Dennis and Renforth Gateway, and potential grade separations located at Martin Grove Road, Kipling Avenue and the Eglinton Flats.

2.  City Council request the City Planning Division and the Toronto Transit Commission, in partnership with Metrolinx, the City of Mississauga and the Greater Toronto Airport Authority (GTAA) to further develop options for extending the Eglinton West LRT between Renforth Gateway and Pearson International Airport.

Scarborough Transit Network

3.  City Council request the City Manager and the Chief Executive Officer, Toronto Transit Commission to remove from consideration the 3-stop McCowan Scarborough Subway Extension (SSE) and continue to develop an SSE Express option, by conducting the following:

a.  retaining the services of a third-party rail transit construction and cost –estimation expert to undertake a risk assessment and detailed review of the TTC's 5 percent design cost estimates for the McCowan corridor and other possible express subway alignment options; and

b.  prepare the Environmental Project Report for the SSE express subway and issue the Notice of Commencement for the Transit Project Assessment Process (TPAP) once ready to proceed.

4.  City Council request the City Manager and the Chief Executive Officer, Toronto Transit Commission, in partnership with Metrolinx, and in consultation with the University of Toronto Scarborough (UTSC), to undertake further technical and planning analysis with respect to an Eglinton East LRT extension to the UTSC, including:

a.  advancing the Eglinton East LRT to a minimum of 5 percent design;

b.  assessing the interface at Kennedy Station of the Eglinton East LRT, Metrolinx Eglinton Crosstown project, and the preferred Scarborough Subway Extension (SSE) option as a result of the analysis requested in recommendation 3;

c.  assessing the potential realignment of Military Trail through UTSC; and

d.  identifying the requirements for the next phase of the Eglinton East LRT extension to Malvern.

5.  City Council request the City Manager and the Chief Executive Officer, Toronto Transit Commission, in consultation with Metrolinx, to develop a business case analysis for the Scarborough Transit Network solution, and include the following components in the network scenarios:

a.  Express Scarborough Subway Extension (SSE), subject to the additional analysis outlined in recommendation 3; and

b.  Eglinton East LRT extension based on the additional analysis outlined in recommendation 4.

6.  City Council request the Province of Ontario to confirm the timing for delivering the approved Sheppard East LRT extension, with committed funding under the Building Canada Fund and the Toronto-Metrolinx Light Rail Transit Master Agreement signed in 2012, in order to inform transit network planning and business case analysis for Scarborough's future transit network.

Relief Line

7. City Council approve the Pape-Eastern-Queen alignment for the Relief Line, subject to the determination of a specific alignment in Part 7b below, and authorize the Chief Planner and Executive Director, City Planning and the Chief Executive Officer, Toronto Transit Commission to:

a. work in partnership with Metrolinx to confirm station locations for optimal connections between the Relief Line and SmartTrack/Regional Express Rail, including future extensions of the Relief Line; and

b. undertake an additional assessment of an alignment west of Pape Avenue, starting immediately north of the GO tracks on Pape Avenue to south of Queen Street, with a station box at Queen Street and Carlaw Avenue and:

1.  prepare an Outreach Plan in consultation with the local Councillor to review these option(s) with stakeholders, including the General Manager, Economic Development and Culture, and the public, including local residents; and

2.  bring back a recommendation to Council, through Executive Committee, prior to commencing the formal Transit Project Assessment Process; and

c.  prepare the Environmental Project Report for the Relief Line and issue the Notice of Commencement for the Transit Project Assessment Process once ready to proceed.

8.  City Council authorize the City Manager in consultation with the Chief Executive Officer, Toronto Transit Commission to develop a Terms of Reference with the Province of Ontario and Metrolinx to advance the next phases of planning and design for the Relief Line, including extensions of the Relief Line north to Sheppard Avenue and west to the Bloor subway line.

9. City Council request the Toronto Transit Commission and the City Planning Division to assess potential impacts associated with tunnelling and station construction during the detailed design phase of the project, and identify mitigation measures for private property owners, and conduct further public consultation where impacts to residential areas are identified.

Cost-Sharing and Funding Implications

10.  City Council authorize the City Manager to undertake the following and report to City Council for its consideration:

a.  negotiate cost sharing and intergovernmental fundings arrangements with the Province of Ontario for shared costs associated with:

1.  implementing SmartTrack within the Regional Express Rail program;

2.  extending an LRT along Eglinton West;

3.  extending an LRT along Eglinton East;

4.  operating and maintaining Metrolinx Toronto LRT projects;

5.  municipal utility and infrastructure within Metrolinx-owned rail corridors; and

6.  any other outstanding transit related matter.

b.  review and report back on governance implications and arrangements to be put in place to effectively carry out the intergovernmental funding and cost share arrangements; and

c.  negotiate and enter into a funding agreement with the Government of Canada for the federal contribution towards the incremental costs associated with implementing the SmartTrack components within the Regional Express Rail program, per recommendation 1, and the Scarborough Transit Network per recommendation 3.

11.  City Council request the City Manager and the Deputy City Manager and Chief Financial Officer to report to City Council on the funding implications to the City associated with the proposed terms of cost-sharing arrangements provided for pursuant to recommendation 10.

12. City Council authorize the City Manager to include additional planning and design work for SmartTrack, Eglinton West LRT, Scarborough Subway Extension, Eglinton East LRT and Relief Line, as part of the priority list of projects to be submitted to the Government of Canada and the Province of Ontario under phase one of the Federal Public Transit Infrastructure Fund.

13.  City Council approve the creation of an Eglinton East LRT capital sub-project within the Corporate Initiatives Capital Program's Transit Expansion Initiatives project, with approval for a 2016 cash flow of $3 million and a 2017 cash flow of $4 million for a total of $7 million, for the purpose of advancing the Eglinton East LRT design work to 5 percent, fully funded from the Capital Financing Reserve Fund (XQ0011).

14.  City Council request the City Manager in consultation with the Chief Executive Officer, Toronto Transit Commission, the Deputy City Manager, Cluster B and the Deputy City Manager and Chief Financial Officer to report through the budget process on the feasibility of establishing dedicated and properly resourced functions for the coordination, analysis and implementation of the City's multi-billion dollar transit expansion initatives.

The Executive Committee requested the Chief Planner and Executive Director, City Planning and the Chief Executive Officer, Toronto Transit Commission to report directly to  City Council on July 12 2016 on any funds that would be required to undertake the assessment in the amendment to Recommendation 7 from the Executive Committee.

The Deputy City Manager, Cluster B, the Chief Planner and Executive Director, City Planning, the Executive Director, Strategic and Corporate Policy, and the Chief Executive Officer, Toronto Transit Commission gave a presentation on Developing Toronto's Transit Network Plan to 2031.

In March 2016, City Council considered the report EX13.3 Developing Toronto's Transit Network Plan: Phase 1, which provided a comprehensive update on transit expansion projects currently under assessment, including how each project contributes to the development of Toronto's future transit network. City Council directed staff to focus analysis on key options for each transit project. In particular, City Council:

- Approved SmartTrack/GO Regional Express Rail (RER) Integration options C and D for further study and removed from consideration the separate and parallel SmartTrack option, option A and option B.

- Removed heavy rail options on the western corridor for SmartTrack from consideration and requested a review of the Eglinton West LRT extension from Mount Dennis to Mississauga Airport Corporate Centre (MACC) and Pearson  International Airport.

- Removed from consideration the Bellamy and Scarborough Express Rail (SmartSpur) corridors for the Scarborough Subway Extension (SSE); and

- Approved the Pape to Downtown via Queen/Richmond as the preferred corridor for the Relief Line project.

City Council also directed additional analysis be undertaken in partnership with the Toronto Transit Commission (TTC) and Metrolinx to advance these projects for consideration at the June 2016 Executive Committee meeting. This report provides recommendations on the preferred options resulting from further technical, planning and initial business case analysis for SmartTrack/GO RER including Eglinton West LRT, the Scarborough Transit Network, and Relief Line. In particular this report recommends City Council approve the following options which further define the scope of each project:

- SmartTrack/RER Integration scenario with up to six new stations on the Stouffville/Lakeshore East GO corridor (Finch, Lawrence, Gerrard, and Unilever) and the Kitchener GO Corridor (Liberty Village and St. Clair West);

- An Eglinton West LRT extension with 8 to 12 stops between Mount Dennis and Renforth Gateway, as the western corridor for SmartTrack;

- Remove from further consideration the 3-stop SSE, and focus further business case analysis on a Scarborough Transit network solution that considers Express SSE options to Scarborough Centre and an extension of the Eglinton East LRT.

- Approve the Pape-Eastern-Queen alignment for the first phase of Relief Line, and authorize City and TTC staff to prepare the Environmental Project Report (EPR) to move towards the Environmental Assessment (EA)/Transit Project Assessment Process (TPAP).

The recommendations in this report further define the key projects which will form Toronto's transit network by 2031, and identify the next steps to advance to the next phases of analysis and discussion with the Province of Ontario, Metrolinx and the TTC.

The next steps to advance SmartTrack include:

- Advancing further technical and planning work in order to undertake the EA/TPAP processes required for the recommended SmartTrack/RER Integration scenario, the new SmartTrack stations, and the Eglinton West LRT extension from Mount Dennis to Renforth Gateway;

- Commencing negotiations on cost-sharing, project governance, asset ownership, fare policy, and project delivery for SmartTrack and the Eglinton West LRT extensions;

- Identifying the funding implications related to the City's share of costs for SmartTrack; and

- Undertaking further work with the City of Mississauga and the Greater Toronto Airport Authority (GTAA) in partnership with Metrolinx to refine options for extending the LRT between Renforth Gateway and Pearson International Airport as a next phase of the project.

The next steps to advance a preferred solution for Scarborough Transit include:

- Retaining the services of a third-party expert in rail transit construction and cost-estimation to undertake a risk assessment and detailed review of the TTC’s 5 percent design cost estimates for the Express McCowan subway, and other possible express subway alignments;

- Preparing the Environmental Project Report for the SSE Express subway in order to issue the Notice of Commencement for the TPAP once ready to proceed;

- Advancing the design on the Eglinton East LRT to a minimum of 5 percent in order to support decision-making; and

- Evaluating the SSE Express subway option in conjunction with the Eglinton East LRT extension to UTSC and Malvern, in order to determine the preferred network solution for Scarborough through a business case analysis.

The City Manager will bring a subsequent report to City Council with respect to the status of negotiations with the Province of Ontario, Metrolinx, and the Government of Canada, including funding implications for the City's share of costs associated with SmartTrack and Scarborough Transit.

The Relief Line project, a priority for the City and TTC, will continue per Council direction to advance planning, design and the EA/TPAP process for the first phase of the project. The first phase of the Relief Line between Danforth and downtown is a critical component of the longer-term vision for the new subway line which is envisioned to extend north to Sheppard Avenue and west to connect to the Bloor subway line. The City and TTC will work with the Province and Metrolinx to advance the next phases of the Relief Line.

The priority projects advanced in this report will be integrated into further refinement of the City's long term transit network plan through the Official Plan review process, Feeling Congested?, and forwarded to Metrolinx for consideration in the Regional Transportation Plan Review. As directed by City Council in March 2016, a report from the Chief Planner & Executive Director, City Planning will be presented in Q1 2017 with an update on the second phase of Toronto's long term transit network plan.

The City Manager has forwarded this report to the President and CEO, Metrolinx, and the CEO, TTC for submission to the July 11, 2016 TTC Board meeting.

The Executive Committee recommends:

1.  City Council direct the City Manager and the Deputy City Manager and Chief Financial Officer to engage the public on the City of Toronto's long-term financial direction, such engagement to include information, consultation and dialogue to seek input and advice on establishing a robust fiscal framework that includes expenditure management strategies, meaningful governance and oversight of City programs and agencies, prudent management of financial and physical City assets, and adequate revenue generation from existing and new sources to achieve desired public services on a sustainable basis.

2.  City Council approve up to $500,000 for a consultation plan to take place over the balance of 2016 and spring 2017 to support the establishment of a long-term financial plan.

3.  City Council approve an increase of $250,000 gross at $0 net to the 2016 Non-Program Expenditure Budget to be funded from the Innovation Reserve for the delivery of Phase 1 of the long-term financial direction consultation process.

4.  City Council authorize the City Manager and the Deputy City Manager and Chief Financial Officer to include up to $250,000 gross at $0 net in the 2017 Non-Program Operating Budget submission, to be funded from the Innovation Reserve, for the delivery of Phase 2 of the consultation plan, as required.

City Council at its June 6, 2016 meeting requested that the City Manager report to the June 28, 2016 Executive Committee with a proposed consultation plan on the long-term financial direction. This report responds to that request.

The public engagement strategy will seek input to support Council's decision-making and objectives for service excellence, value for residents and businesses, and accountable financial oversight. It will employ a range of methodologies in keeping with the complexity, urgency and critical nature of the topic and the diversity of participants and perspectives.

The City Manager and the Deputy City Manager and Chief Financial Officer propose engaging with the public and stakeholders from Fall 2016 through Spring of 2017, to gather input and advice on how to ensure Toronto is a modern, mature government with the appropriate fiscal resources in place to support a City of its size, complexity and aspirations. Participants will be provided with information about the City's long-term financial direction, budget and budget process and Council's strategies and plans in order to support an informed dialogue.

The engagement strategy will support public learning, and multiple opportunities to participate and provide input, and processes that encourage public discussion among participants and stakeholders with diverse opinions and perspectives. The strategy is built on best practices for public engagement including clarity of scope and methodologies that are purposeful, appropriate, accessible, transparent and accountable.

The consultation will be coordinated by the City Manager's Office and the Deputy City Manager and Chief Financial Officer in two phases, building towards a plan which incorporates the many components of the long-term financial direction.

Phase 1 (Fall 2016)

- Opportunities to learn about the City's financial framework, encourage exploration of the issues through dialogue and debate.

- Seek advice to guide decision-making on City revenues, expenditures and assets to support a multi-year revenue strategy, Expenditures Management Plan and maximize the use of assets in supporting service delivery;

- Identification of issues where there is significant public support, common interests, and where differences of opinion exists.

Phase 2 (Spring 2017)

- Build on the findings of Phase 1 seeking in-depth advice on key issues or areas requiring additional study, or where critical differences or divides exist.

- Consultations focused on the City's long-term financial direction, as well as strengthening the City's financial management and oversight of City programs and agencies and supporting Council in setting priorities and outcomes in order to deliver its strategic agenda.

- Engagement report with public input themed to the elements outlined in the long-term financial direction report and findings which support the implementation of a sustainable, coordinated, long-term financial strategy.

Details about the engagement process and findings, the City Manager's reports, and raw data will be posted to the City's website and Open Data page.

The Executive Committee recommends that:

1.  City Council adopt in principle the directions to move to a centralized real estate operating model as broadly described in Appendix A of the report (June 13, 2016) from the City Manager and authorize the City Manager to:

a.  recruit and appoint a transition team; and

b.  develop a transition strategy and implementation plan, in collaboration with affected City agencies and corporations listed in Table 1 of the report (June 13, 2016) from the City Manager, including a recommended governance model incorporating a core city building mandate that considers public policy objectives such as affordable housing, public realm, public transit and economic development and report further to Executive Committee in the first quarter of 2017.

2.  City Council establish a Council Advisory Body (Real Estate Advisory Committee) for the real estate transformation pursuant to the Terms of Reference in Appendix B to the report (June 13, 2016) from the City Manager.

3.  City Council request the Boards of relevant agencies and corporations listed in Table 1 of the report (June 13, 2016) from the City Manager to participate in the development of the transition strategy and implementation plan, and provide information as required.

4.  City Council‎ request that the City's affected City agencies and corporations listed in Table 1 of the report (June 13, 2016) from the City Manager, during the development of the real estate transition strategy and implementation plan, co-operate and coordinate with the transition team, when undertaking any real estate transaction or development work of significance (whether in dollar value, City building potential, size of site, or otherwise). 

5.  City Council approve one-time transition costs over the next 9 months of $1.702 million ($0.788 million in 2016, $0.914 million in 2017) and 8 temporary positions with funding provided from the Innovation Reserve Fund (XR1713). This increase is for the establishment of a transition team, including a cross-functional Program Management Office for a 9 month period ($1.143 million) and for continued support from Deloitte LLP, the City's third-party consultant retained to support the City-wide Real Estate Review ($0.559 million).

6.  City Council amend the 2016 approved operating budget for Facilities, Real Estate, Environment and Energy by adding $0.788 million gross and $0 net and request the Chief Corporate Officer to report back during the 2017 budget process on future requirements.

7.  City Council authorize the City Manager to negotiate and execute an amending agreement with Deloitte LLP to assist in the transition phase of the City-wide Real Estate Review initiative at cost of $0.550 million net of all applicable taxes and charges ($0.559 million net of HST recoveries) which increases the value of the existing contract from $0.2 million ($0.203 million net of HST recoveries) to $0.750 million ($0.762 million net of HST recoveries), on terms and conditions satisfactory to the City Manager and in a form satisfactory to the City Solicitor.

This report is further to City Council's direction to the City Manager to undertake a City-wide Real Estate Review to provide an objective assessment of the City's real estate services delivery model across applicable divisions, agencies and corporations. Its purpose is to provide an update on the status of this review and outline the City Manager's advice to Council related to the opportunities identified through the review process.

This report is intended to set the future direction for the City of Toronto's extensive real estate holdings, the scope of which has been fully captured for the first time through this review process.  The City of Toronto owns an expansive, diverse and valuable real estate portfolio with significant operational and capital expenditures. With holdings conservatively valued at $27 billion including 6,976 buildings covering 106.3 million square feet (9.87 million square metres) and 28,882 acres of leased and owned land, the City of Toronto, including all its divisions, corporations and agencies, has one of the most significant real estate portfolios in the country.

Although it is recognized that many of these assets can never be sold, ensuring the City is effectively positioned to strategically leverage its real estate portfolio, and maximize operating efficiencies is consistent with the City's Long-Term Financial Direction report recently adopted by Council. The Long-Term Financial Direction is focused on strengthening financial processes, strategic planning, oversight and decision-making, while taking a "whole of government" approach to all aspects of City operations, including those of divisions, agencies, and corporations. Further, optimization of the City's assets will aid Council in achieving long-term strategic objectives and city-building priorities.

Table 1 shows there are 15 entities identified as managing their portfolios with varying governance arrangements, mandates, strategic and operational objectives related to real estate assets:

Table 1: 15 City Real Estate Entities

Real Estate Services within the City's Chief Corporate Officer Organization provides day-to-day transactional real estate services to the majority of divisions and agencies. When entities manage their real estate portfolios autonomously, it limits the City's ability to achieve long-term strategic objectives, develop a holistic City building strategy, explore co-location opportunities, maximize the value of assets and find efficiencies in operations.

The City Manager retained third-party expertise from Deloitte LLP (Deloitte) to assist with this initiative in partnership with the Chief Corporate Officer Organization. Deloitte's review concluded that the status quo will not provide the appropriate framework to unlock land value potential and ensure the strategic use of land and building assets. As a result, a comprehensive plan to co-ordinate all City-owned real estate is required, producing long-term efficiencies and improvements for the City.

Deloitte's findings suggests that there is an opportunity for the City to align its real estate operations by creating a new leading edge centralized real estate entity that consolidates all core real estate and facilities management operations and functions over the next two to four years.

Deloitte advises that making these changes will help the City of Toronto to:

- Strengthen the City's ability to make strategic and informed decisions that promote city-building and  City-wide objectives;

- Maximize the value of the City's land and property assets and find savings through co-location and joint ventures while reducing the City's state of good repair backlog;

- Create more mixed-use developments that bring important services closer to residents;

- Develop improved technology platforms and streamlined work and approval processes; 

- Integrate modernized approaches to space planning to allow for enhanced staff productivity and efficiency; and

- Provide better solutions through proactive engagement with all stakeholders, including Council, City staff and the community.

The transformation process to successfully establish a new real estate entity will require significant executive leadership, change management, policy and practice re-engineering, organizational change and information technology investment.

As an immediate first step, the City will need to put in place a comprehensive transition framework, which will include engaging with senior executives and creating a transition team reporting to the City Manager.

The transition team will develop a strategy and a detailed implementation plan, including new policies and practices, and identification of a technology platform by the second quarter of 2017 to help facilitate the restructuring and move to the end state.  It will develop a core city building mandate that considers public policy objectives such as affordable housing, public realm, public transit and economic development.

The Executive Committee recommends that:

1.  City Council extend congratulations to the following who have been selected by a community panel as recipients of the 2016 City of Toronto Access, Equity and Human Rights Awards: 

            Aboriginal Affairs Award:  Fizul Sima

            Access Award:  Maayan Ziv

            Pride Award:  Alex Abramovich

            William P. Hubbard Award:  Black Lives Matter Toronto

2. City Council confirm the selection made by the Constance E. Hamilton Award Selection Committee comprised of the Women Members of Council that Paola Gomez is the recipient of the 2016 Constance E. Hamilton Award.

This report advises City Council of the results of the nomination process for the City of Toronto Access, Equity and Human Rights Awards. These Awards are the Aboriginal Affairs Award, the Access Award on Disability Issues, the Constance E. Hamilton Award on the Status of Women, the Pride Award for Lesbian, Gay, Bisexual, Transgender, Trans and 2-Spirit Issues and the William P. Hubbard Race Relations Award. 

The recipient of the Constance E. Hamilton Award is selected by the Women Members of Council and will be a supplementary item to this report.

The Constance E. Hamilton Award was established in 1979 and is named after the first woman elected in 1920 to municipal council in Toronto.  The award recognizes person(s) who have made a significant contribution to improving the social, economic, cultural and political status of women in Toronto. 

The Selection Committee has reviewed the nominations submitted by the public and selected the following recipient for her contributions toward improving the status of women in Toronto:

Paola Gomez

Paola Gomez has been supporting refugee women in Toronto as a Community Support Worker for many years. Paola Gomez is also a community activist working with women from Latin American backgrounds who have experienced violence. Paola is a member of PEN Canada and a leader within her Writers in Exile group. She offers courses in creative writting for women and enables women who have experienced sexual violence with the ability to speak about their experience and find healing.  She has been an advocate for women in her work with organizations like YWCA Toronto and Romero House. She has been a volunteer with Centre of International Justice.  She is a leader in the art scene in Toronto and the co-founder of SICK MUSE ART PROJECTS, a program she created to promote self-expression among women and children living in shelters and refugee homes. Through this program, Paola led the first group delivering art workshops at the hotels where Syrian refugees have been living since their arrival to Toronto.

Awards Presentation

The Constance E. Hamilton Award will be presented during the City’s Annual Human Rights Awards Ceremony in December when the following awards will also be presented:  Aboriginal Affairs Award, the Access Award on Disability Issues, the Pride Award for Lesbian, Gay, Bisexual, Transgender, Trans and 2-Spirit Issues and the William P. Hubbard Race Relations Award.

The Executive Committee recommends that:

1.  City Council treat that portion of the Council meeting at which the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer is considered as the Annual General Meeting of the Shareholder for Build Toronto by:

a.  appointing Pricewaterhouse Coopers LLP, Chartered Accountants, as the Auditor of Build Toronto for fiscal year 2016, and authorizing the Board of Directors of Build Toronto to fix the Auditor's remuneration;

b.  receiving the Build Toronto 2015 Annual Review, forming Attachment 1 to the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer;

c.  receiving the Build Toronto Financial Report to the Shareholder (which contains its 2015 audited consolidated financial statements), forming Attachment 2 to the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer;

d.  receiving the Build Toronto Inc. 2015 Compensation Disclosure and Analysis, forming Attachment 3 to the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer; and

e.  receiving Build Toronto's 2015 Value Add Report to the Shareholder, forming Attachment 4 to the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer.

2.  City Council request the City Clerk to forward the Build Toronto Financial Report to the Shareholder, forming Attachment 2 to the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer, to the Audit Committee for information.

The President and CEO, BUILD Toronto gave a presentation to the Executive Committee.

This report contains recommendations for the actions necessary to comply with the requirements of the Ontario Business Corporations Act (OBCA) for holding the Annual General Meeting of the Shareholder of Build Toronto Inc. (Build Toronto), including receipt of its 2015 Annual Review and audited Consolidated Financial Statements December 31, 2015, as well as the appointment of its auditor for 2016.

This report also contains recommendations for receipt at the Annual General Meeting of the Shareholder of information disclosing the individual compensation of executive officers employed by Build Toronto in 2015, and Build Toronto actions to add value to transferred properties to date.

The Executive Committee recommends that:

1.  City Council treat that portion of the City Council meeting at which the report (June 10, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer is considered as the Annual General Meeting of the Shareholder for Casa Loma Corporation by:

a.  appointing Welch LLP Chartered Accountants, as the Auditor of Casa Loma Corporation for fiscal year 2016, and authorizing the Board of Directors of Casa Loma Corporation to fix the remuneration of the Auditor;

b.  receiving the Casa Loma Corporation 2015 Annual Report forming Attachment 1 to the report (June 10, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer; and

c.  receiving the 2015 Audited Financial Statements for Casa Loma Corporation, forming Attachment 2 to the report (June 10, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer.

2.  City Council direct the City Clerk to forward a copy of the Casa Loma Corporation 2015 Audited Financial Statements, forming Attachment 2 to the report (June 10, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer, to the Audit Committee for information.

This report contains recommendations for the actions necessary to comply with the requirements of the Business Corporations Act (Ontario) for holding the Annual General Meeting of the Shareholder of Casa Loma Corporation including receipt of its Annual Report and Audited Financial Statements for 2015 and appointment of the auditor for 2016.

The Executive Committee recommends that:

1.  City Council treat the portion of the City Council meeting at which the report (June 20, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer is considered as the Annual General Meeting of the Shareholder for Lakeshore Arena Corporation by:

a.  appointing Welch LLP Chartered Accountants as the Auditor for Lakeshore Arena Corporation for the fiscal year 2016, and authorizing the Board of Directors of Lakeshore Arena Corporation to fix the remuneration of the Auditor;

b.  receiving the Lakeshore Arena Corporation 2015 Annual Report forming Attachment 1 to the report (June 20, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer; and

c.  receiving the Lakeshore Arena Corporation 2015 Audited Financial Statements, forming Attachment 2 to the report (June 20, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer.

2.  City Council receive the "Lakeshore Arena Corporation – 2015 Executive Compensation Disclosure" forming Attachment 3 to the report (June 20, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer.

3.  City Council direct the City Clerk to forward a copy of the Lakeshore Arena Corporation 2015 Audited Financial Statements, forming Attachment 2 to the report (June 20, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer, to the Audit Committee for information.

This report recommends the actions necessary to comply with the requirements of the Business Corporations Act (Ontario) for the holding of the Annual General meeting of the Shareholder of Lakeshore Arena Corporation, including receipt of its Annual Report and Audited Financial Statements for 2015, and appointment of the auditor for 2016.  

This report also contains recommendations for receipt at the Annual General Meeting of the Shareholder of information disclosing the individual compensation of executive officers employed by Lakeshore Arena Corporation in 2015.

The Executive Committee recommends that:

1.   City Council treat the portion of the Council meeting at which the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer is considered as the Annual General Meeting of the Shareholder for Toronto Community Housing Corporation and:

a.  receive the Letter to the Shareholder and Annual Report from the Toronto Community Housing Corporation's Chair of the Board of Directors and Interim President and Chief Executive Officer dated April 27, 2016 and related attachments, forming Attachment 1 to the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer;

b.  receive Toronto Community Housing Corporation's 2015 Audited Annual Consolidated Financial Statements for the period ending December 31, 2015, and the auditor's report dated April 29, 2016, forming Attachment 2 to the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer; and

c.  reappoint PricewaterhouseCoopers LLP, Chartered Accountants, as the auditor for Toronto Community Housing Corporation for fiscal year 2016 at the fee provided in the City's agreement with that firm.

2.  City Council approve Toronto Community Housing Corporation's proposed approach to developing its next Strategic Plan and Business Plan as outlined in the letter from the Interim President and Chief Executive Officer dated April 27, 2016, forming Attachment 1, Appendix D to the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer.

3.  City Council direct the City Clerk to forward a copy of the "Toronto Community Housing Corporation Consolidated Financial Statements December 31, 2015", forming Attachment 2 to the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer, to the Audit Committee for information.

4.  City Council request the Director, Affordable Housing Office to work with Toronto Community Housing Corporation to investigate increasing the amount of seniors' designated housing east of Markham Road, and report to the Executive Committee meeting of October 26, 2016.

5.  City Council request the Board of Directors, Toronto Community Housing Corporation, to report to the Executive Committee meeting of October 26, 2016, on how the Toronto Community Housing Corporation's Community Management Plan can address the following:

a.  the need for strategies for human resource development for public domains of participatory action, including how TCHC prepares and assesses its public servants for their roles as communicators and social facilitators.

6.  City Council request the Board of Directors, Toronto Community Housing Corporation, to report to the Executive Committee meeting of October 26, 2016, on how the Toronto Community Housing Corporation's Community Management Plan can address the following:

a.  the need to develop a unique plan for resident participation appropriate to each locale, be it in a neighbourhoods or a smaller subsections, with sufficient budgetary allocations and expertise for such programs.

This report recommends the actions necessary to comply with the requirements of the Ontario Business Corporations Act (OBCA) for holding an Annual General Meeting of the Shareholder of Toronto Community Housing Corporation (TCHC), including receipt of Toronto Community Housing Corporation's 2015 audited annual consolidated financial statements and appointment of the auditor for Toronto Community Housing Corporation for 2016.

This report also contains a recommendation for consideration at the Toronto Community Housing Corporation Annual General Meeting of the Shareholder related to Toronto Community Housing Corporation's Strategic Plan and Business Plan, and next steps.

The Executive Committee recommends that:

1.  City Council treat that portion of the Council meeting at which the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer is being considered as the Annual General Meeting of the Shareholder for Toronto Hydro Corporation by:

a.  adopting the recommendations of the "Toronto Hydro Corporation Report" dated May 24, 2016 in Attachment 1 to the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer in order to re-appoint KPMG LLP, Chartered Professional Accountants, as the auditor for Toronto Hydro Corporation for 2016 and until a successor is appointed, to authorize the Corporation’s Board of Directors to fix the auditor's remuneration, and to approve the amended By-law No. 1.1 of the Corporation as approved by the Board of Directors of Toronto Hydro Corporation at its March 2, 2016 meeting, forming Appendices A and B to Attachment 1 to the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer;

b.  receiving the "Toronto Hydro Corporation 2015 Annual Report, "Powering Progress", the "Toronto Hydro Corporation 2015 Annual Financial Report December 31, 2015" including "Toronto Hydro Corporation Consolidated Financial Statements December 31, 2015 and 2014", the "Toronto Hydro Corporation Annual Information Form for the Year Ended December 31, 2015", the "Toronto Hydro 2015 Environmental Performance Report", the "Toronto Hydro Corporation Chief Executive Officer and Chief Financial Officer Certification of Annual Filings" and the "Toronto Hydro Corporation First Quarter Report March 31, 2016", forming Attachments 2, 3, 4, 5, 6 and 12 respectively to the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer;

c.  receiving the "Toronto Hydro Corporation Report to the Shareholder for the year ended December 31, 2015", the "Toronto Hydro Corporation Consolidated Financial Statements December 31, 2015", the "Financial Statements Toronto Hydro-Electric System Limited December 31, 2015 and 2014", and the "Financial Statements Toronto Hydro Energy Services Inc. December 31, 2015 and 2014", forming Confidential Attachments 7, 8, 9 and 10 respectively to the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer;

d.  receiving the two-part report "Executive Compensation Disclosure Toronto Hydro Corporation 2015", forming Attachment 11(a) and Confidential Attachment 11(b) to the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer.

2.  City Council direct that Confidential Attachments 7, 8, 9 and 10 of the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer remain confidential in their entirety due to the security of the property of the City and securities requirements arising from Toronto Hydro Corporation's status as an offering corporation under the Business Corporations Act (Ontario), R.S.O. 1990, c.B.16, Toronto Hydro Corporation's status as a reporting issuer under the Securities Act (Ontario), R.S.O. 1990, c.S.5, and the application by the Ontario Securities Commission of National Instrument 51-102. 

3.  City Council direct that Confidential Attachment 11(b) of the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer remain confidential in its entirety as it deals with personal information about identifiable individuals.

4.  City Council refer the "Toronto Hydro Corporation Consolidated Financial Statements December 31, 2015 and 2014", included as part of Attachment 3 to the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer, to the Audit Committee for information.

5.  City Council authorize and direct the appropriate City Officials to take the necessary actions to give effect thereto.

This report contains recommendations for actions necessary to comply with the requirements of the Business Corporations Act (Ontario), R.S.O. 1990, c.B.16 ("OBCA") for holding the Annual General Meeting of the Shareholder of Toronto Hydro Corporation ("THC") including receipt of Toronto Hydro Corporation's audited annual consolidated financial statements for 2015 and appointment of the auditor for Toronto Hydro Corporation for 2016.

This report also contains recommendations for receipt at the Annual General Meeting of the Shareholder of Toronto Hydro Corporation, other reports provided by Toronto Hydro Corporation as required by the Amended and Restated Shareholder Direction Relating to Toronto Hydro Corporation ("Shareholder Direction") which, in addition to the OBCA requirements, include:

-  Toronto Hydro Corporation's (THC) annual report and Toronto Hydro Corporation's report on environmental performance;

-  Toronto Hydro Corporation's report to the Shareholder, consolidated financial statements and financial statements for its subsidiaries. Note that Toronto Hydro Corporation has advised the City that Attachments 7, 8, 9 and 10 are confidential due to: the security of the property of the City; and securities requirements arising from THC's status as an offering corporation under the OBCA, THC's status as a reporting issuer under the Securities Act (Ontario), R.S.O. 1990, c.S.5, and the application by the Ontario Securities Commission of National Instrument 51-102;

-  Toronto Hydro Corporation's Annual Information Form, a public document published annually as required by the Ontario Securities Commission from Toronto Hydro Corporation as a public debt issuer; and

-  Toronto Hydro Corporation's disclosure of executive compensation in two parts, with the part in Attachment 11(b) being confidential as it includes personal information about identifiable individuals.

The Executive Committee recommends that:

1.  City Council, as the ultimate owner of 58,500 rental units through its sole shareholder corporation, commit to Toronto Community Housing achieving the distinction of being a landlord of choice with a reputation for good repair, cleanliness, and safe and healthy buildings.

2.  City Council direct staff to develop, for Council consideration, an implementation plan, detailing the actions required to:

a.  transition a portion of the Toronto Community Housing Corporation portfolio to a new community-based non-profit corporation;

b.  transition a portion of the Toronto Community Housing Corporation portfolio to existing and interested community-based non-profit social housing providers;

c.  create more mixed-income communities within the social housing sector as a whole, including within Toronto Community Housing Corporation;

d.  create better buildings and more of them, including potential revitalization projects in the Etobicoke/York and Scarborough Community Council districts;

e.  decentralize operations including the creation of an innovation lab established on a lean management model, that actively engages with tenants and innovates in response to tenant feedback;

f.  strengthen partnerships, including detailed opportunities to work with community-based service providers, Local Health Integration Networks, the City, and other service providers to enhance capacity and quality of service delivery;

g.  reform the rent geared to income system, including opportunities to provide tenants with increased opportunities for choice within the social housing sector; and

h.  clarify Toronto Community Housing Corporation mandate and responsibilities within the shareholder direction.

3.  City Council direct staff to review the financial and budget implications and additional funding required to implement each proposed recommendation and report in the first quarter of 2017.

4.  City Council direct that the Deputy City Manager, Cluster A strike a Toronto Community Housing Corporation Resident Advisory Group to help guide the development of the implementation plan.

5.  City Council direct that the Deputy City Manager, Cluster A strike an Implementation Steering Committee including representatives of the Toronto Community Housing Corporation Board and require City staff to help guide the development of the implementation plan.

6.  City Council request that the City and Toronto Community Housing Corporation undertake a detailed review of Toronto Community Housing Corporation's assets to help determine which buildings Toronto Community Housing Corporation should renovate; which buildings need to be replaced; which buildings may be transferred; and who is best to operate each buildings and that the initial findings be reported to Executive Committee in the first quarter of 2017.

7.  City Council commend the Governments of Ontario and Canada for recent program and policy announcements, but further encourage both governments to actively support Toronto Community Housing Corporation's capital repair program with new or existing tools including capital grants or interest-free loans, implementation of a program to convert existing high interest Canada Mortgage and Housing Corporation (CMHC) mortgages to reflect the lower rates in the current market environment, streamline approvals and donations or preferential sale of surplus public lands, while specifically encouraging the Government of Ontario to adjust utility scales and social assistance rent scales for those Torontonians living in social housing who are in receipt of Ontario Works or Ontario Disability Support Program supports.

8.  City Council thank the Task Force Members for their work in preparing both the Interim and Final Report on Toronto Community Housing Corporation.  

9.  City Council request the City Manager to include the following in the development of the implementation plan to be considered by City Council in the second quarter of 2017:

a. strategies to ensure that Rent Geared to Income (RGI) housing provided through both Toronto Community Housing Corporation and potential non-profit housing achieves a common performance standard; and

b. possible strategies to establish a 70/30 percent ratio while retaining the current number of overall Rent Geared to Income (RGI) subsidies within the City.

10.  City Council request the City Manager to include, for Council consideration in the second quarter of 2017, a detailed financial plan identifying the resources required to develop a Tenants First Implementation Plan, including appropriate funding sources to meet the goal established in Recommendation 1.

11.  City Council request the City Manager to develop a public consultation process to inform the implementation plan to be considered by City Council in the second quarter of 2017.

Toronto Community Housing Corporation (TCHC) has experienced significant challenges since its creation through the amalgamation of three housing entities: CityHome, Metro Toronto Housing Company Limited and Metro Toronto Housing Authority in 2002.  There have been a number of high profile governance and leadership challenges over the last six years.  More recently, financial issues have arisen due to a combination of factors, including a business model that is fundamentally broken, a significant state of good repair backlog, and lack of clarity in its mandate.  Security and community health concerns continue to pervade Toronto Community Housing Corporation.  The size of Toronto Community Housing Corporation and its numerous lines of business have limited its ability to respond to a broad range of communities, neighbourhoods and residents it serves. 

Toronto Community Housing Corporation was established as a sole shareholder corporation and intentionally provided with a block subsidy, in order to allow it to operate with minimal interference from the City.  However, throughout Toronto Community Housing Corporation's history, the City has been far more involved in the management and operations of Toronto Community Housing Corporation than originally anticipated.  This involvement has taken many forms, including: Councillor engagement in general, Board directions and relationships, and interactions between staff within the City and Toronto Community Housing Corporation.  This report recommends that Council take a more strategic role in both the management of the social housing system and in providing direction to Toronto Community Housing Corporation.

In January 2015, Mayor Tory established a Task Force, under the leadership of Senator Eggleton, to review Toronto Community Housing Corporation with a particular focus on how to improve conditions for tenants and how to create a sustainable business model.  This report considers the rationale, support for and implications of the Task Force's Transformative Ideas. Staff have undertaken broad stakeholder consultation, a review of other jurisdictions, developed an approach for detailed financial analysis and modelling, and held discussions with members of the Task Force.  Based on this review staff are recommending that Council support the five transformative ideas, with some minor modifications:

1.  (partial) transition to a new (and existing) community-based non-profit housing corporations;

2.  create mixed-income communities;

3.  better buildings and (where possible) more of them;

4.  decentralize operations/strengthen partnerships; and

5.  reform the rent geared to income system.

The Task Force final report was tabled by the Mayor at Executive Committee in January, 2016 and the Task Force recommendations were referred to staff to review and provide advice to Council. The following four assumptions guided staff's review and analysis of the Task Force recommendations:

1.  the status quo is not an option; significant change is required;

2.  improvements in the lived experience and quality of life for Torontonians living in Toronto Community Housing Corporation is central to a successful model;

3.  reform in the social housing system will inform changes in Toronto Community Housing Corporation; and

4.  the way forward must build financial and social sustainability within TCHC and the wider social housing system. 

While this report reflects a strategy for significant change, it is important to note that there remain various structural and systemic barriers that will continue to present challenges as the City moves towards a transformed social housing system.  Structural poverty, increasing incidence of vulnerability, and ever-widening disparities in wealth continue to present as challenges, not only to the outcomes sought through the design and re-design of social housing, but to the success of the City's Poverty Reduction Strategy, Strong Neighbourhoods Strategy and for City-building as a whole.  

This report sets out a set of strategic directions aimed at enhancing Toronto Community Housing Corporation's capacity to provide clean, safe, well-maintained, affordable homes for residents and to help foster neighbourhoods where residents have opportunities.  It also identifies new service models that will help improve the financial sustainability of Toronto Community Housing Corporation and enhance the quality of life of Torontonians who call Toronto Community Housing Corporation home.  Notwithstanding these recommendations, a higher level of investment by the City will also be required, moving forward.   

If implemented, the recommendations in this report will also help to enhance the capacity of the social housing sector and facilitate the development of new and innovative ways to deliver sustainable, supportive and tenant focussed social housing in Toronto. 

The Executive Committees recommend that:

1.   City Council approve the Post Construction Plan – Term Sheet attached as Appendix 1 to the report (June 20, 2016) from the Deputy City Manager, Cluster A and Deputy City Manager, Cluster B; such plan to include the creation of an independent not-for-profit charitable corporation (the "non-profit entity") to program, operate and maintain Project: Under Gardiner ("the Project") that anticipates calling for the inclusion of two members of City Council on its Board of Directors representing those wards in closest proximity to the Project, currently Wards 19 and 20.

2.  City Council amend the approved 2016 - 2025 Capital Budget and Plan for the Waterfront Revitalization Initiative to adjust Under Gardiner project funding in 2017; replacing $10.0 million in capital funding from the Project Donor with a $1.0 million contribution from the City Wide Parkland Development Cash-in-lieu reserve fund (XR2211) and a $9.0 million contribution from Development Charges (XR2114).

3.  City Council adjust the approved 2016 Operating Budget for City Planning by $2.0 million gross and $0 net, fully funded from the Project donations through a draw from the Gardiner West Public Realm Improvements Reserve Fund (XR3034).  These expenditures will reflect a transfer to the non-profit entity for the purpose of funding costs for the programming, operations and maintenance of the Project.

4.  City Council authorize the Deputy City Manager, Cluster A, and the Deputy City Manager, Cluster B, to negotiate and enter into an amendment to the Memorandum of Understanding, dated December 21, 2015, among the City of Toronto, Waterfront Toronto and Judy and Wilmot Matthews Foundation, on terms acceptable to the Deputy City Managers and in a form satisfactory to the City Solicitor, to include the Council-approved Post Construction Plan and facilitate the completion of the Foundation's donation.

5.  City Council authorize the Deputy City Manager, Cluster A, and the Deputy City Manager, Cluster B to negotiate and enter into any and all other agreements necessary to implement the Post Construction Plan, on terms acceptable to the Deputy City Managers and in a form satisfactory to the City Solicitor.

6.  City Council request that the Deputy City Manager, Cluster A, and the Deputy City Manager, Cluster B, report back by the end of 2016 on specific details concerning the following:

a.  necessary legal agreements between the City and the non-profit entity;

b.  provisions to protect public access to new open space and amenities;

c.  protocols related to sponsor and donor recognition;

d.  management of events (including appropriate controls on scale, frequency, intensity); and

e.  collaboration between Fort York National Historic Site and the non-profit entity.

7.  City Council request that the Deputy City Manager, Cluster A, and the Deputy City Manager, Cluster B, following consultations with the non-profit entity, report back on options for a viable long-term funding strategy for the Project by June 30, 2021.

8.  City Council authorize City staff to make submissions for funding to the Government of Canada and the Province of Ontario and to pursue private funding and sponsorships to support programming, operations, maintenance and capital expenses for the Project.

9.  City Council endorse the grade-separated suspended bridge Alternative Design for the Schedule "C" Municipal Class Environmental Assessment Process for the Project.

10.  City Council authorize the General Manager, Transportation Services, to issue a Notice of Study Completion and to file the Environmental Study Report for the Fort York Boulevard Crossing Class Environmental Assessment Study in the public record for 30 days in accordance with the requirements of the Municipal Class Environmental Assessment pursuant to the Environmental Assessment Act.

11.  City Council authorize the acquisition of those lands located beneath the Gardiner Expressway and comprising part of 70 Iannuzzi Street for the purpose of facilitating Project: Under Gardiner based on an existing Record of Site Condition (RSC) and Certificate of Property Use (CPU).

12.  City Council endorse "the Bentway" as the official name for the Project.

This report recommends a governance and funding model for the programming, operations and maintenance of capital associated with Project: Under Gardiner (or "the Project"). Announced last year, the Project has been made possible by a $25 million donation from the Judy and Wilmot Matthews Foundation (the "Donor"). To date, the City has received $3 million, with the balance of funding to be provided once Council approves a governance and funding model satisfactory to the City, Donor and Waterfront Toronto, the parties to the Memorandum of Understanding ("MOU") for the Project.

The full vision for the Project involves the transformation of a 10-acre, 1.75-kilometre linear area beneath the elevated Gardiner Expressway into a new east-west multi-use trail and network of public amenities extending from west of Strachan Avenue to Spadina Avenue. The first phase involves the 5.8-acre area between Strachan Avenue and Bathurst Street with a trail connection extending to Spadina Avenue. Planned elements for the first phase include the "Strachan Gate Timber Pier" structure which provides performance and spectator space, a pedestrian and cycling bridge across Fort York Boulevard, a 450-metre ice skating plaza and programming components to activate the public space on a year-round basis.

Project: Under Gardiner will be a major civic and cultural asset that, much like Toronto's revitalized waterfront, will attract and serve residents from across Toronto. The Project will provide much needed public open space and amenities to a high density and rapidly growing area of Toronto. It will provide linkages to 70,000 residents in adjoining communities, including Fort York, Liberty Village, South Niagara, Bathurst Quay, Wellington Place and City Place. It will also connect multiple visitor destinations including Exhibition Place, Fort York National Historic Site and Toronto's waterfront.

Implementation of Project: Under Gardiner is being managed by Waterfront Toronto in consultation with other partners, including the City. Waterfront Toronto has retained the services of a consultant, HR&A Advisors, Inc. ("HR&A") to provide analysis and options for the long-term programming, operations and maintenance of the area. The HR&A study is included as Appendix 2 to this report.

There is consensus among the partners that a not-for-profit charitable corporation ("non-profit entity") is the most appropriate governance model for Project: Under Gardiner. A range of alternatives were evaluated by HR&A, Project partners and City staff. The non-profit entity was identified as the option that best addresses the interests of all partners and supports the governance objectives for the Project: to balance autonomy and authority; produce "best-in-class programming, operations and maintenance; secure diverse funding streams; leverage existing capacity and achieve sustainable, long-term management.

There are various examples of non-profit management of public space in Toronto and other jurisdictions across North America. Evergreen Brick Works and Artscape Wychwood Barns provide a limited precedent within the local context, although both sites involve outdoor spaces of more modest scale and complexity than that of Project: Under Gardiner. Comparable examples in other jurisdictions include Assiniboine Park Conservancy Incorporated in Winnipeg, Friends of the High Line and Central Park Conservancy in New York City, and Atlanta BeltLine Incorporated.  

If Council endorses the formation of the non-profit entity through this report a number of steps will be taken, including at least two reports back to Council in 2016 and 2021. The first step is to amend the MOU to incorporate an agreed-upon "Post Construction Plan" for project governance and funding that will include a clause establishing the non-profit entity. The terms and conditions of that Post Construction Plan are reflected in the Term Sheet attached as Appendix 1.

A City staff committee will be formed to negotiate further terms with the non-profit entity, once established, and to provide ongoing support as required. The local Councillors and community stakeholders will be consulted throughout this process. It is anticipated that the following areas of concern for the City and adjacent community will be addressed through these negotiations:

- necessary legal agreements between the City and the non-profit entity

- provisions to protect public access to new open space and amenities

- protocols related to sponsor and donor recognition

- management of events (including appropriate controls on scale, frequency, intensity)

- collaboration between Fort York National Historic Site and the non-profit entity.

Staff will report back to Council by the end of 2016 with details regarding the outcome of these negotiations and the proposed further terms for programming, operations and maintenance of the Project, including the roles and responsibilities of the non-profit entity and the City.

To support the early stage operations of the non-profit entity, this report recommends a one-time draw of $10 million in City capital funding to enable a matching $10 million of the Donor's funds to be directed to programming, operations and maintenance from 2016 to 2023. The City's $10 million contribution would be drawn from Development Charges and cash-in-lieu funds intended for the creation of parkland and recreational space. (These capital funds cannot be directly committed to operating expenses.) The Donor's $10 million operating contribution would be drawn from its original $25 million capital donation to the Project.

This $10 million City capital contribution will result in the creation of new public recreation and open space to serve a rapidly growing area of Toronto. It will leverage the $25 million donation and an estimated $20 million in additional non-City revenues, at a minimum, to be raised over the next eight years.

To facilitate this proposed exchange of City and Donor funds, Council authority is sought to amend the Council-approved Waterfront Revitalization Initiative 2016-2025 Capital Budget and Plan for the $25 million Under Gardiner project as follows:

- $10 million decrease in capital funding from the Project Donor

- $9 million in increased capital funding from eligible Development Charge funding

- $1 million in increased capital funding from the City Wide Parkland Development Cash-in-lieu reserve fund

The Donor's contribution of $10 million for programming, operations and maintenance would be placed in the Gardiner West Public Realm Improvements Reserve Fund (XR3034) and allocated by Council to the non-profit entity through the annual budget process. Staff recommend an eight-year cash flow for these funds as per the following table:

The City will allocate the Donor's funding in order to support the Project as proposed above. However, the non-profit entity will be an independent organization and will be responsible for managing to a board-approved budget.

HR&A has estimated that the non-profit entity will have a budget of $3.2 to $4.5 million annually for the first phase of Project: Under Gardiner based on a review of comparable organizations. These figures represent preliminary estimates that will be further refined once detailed programming and operational plans, and a funding strategy are developed. If additional revenues are identified to support a more ambitious program, the non-profit entity's budget may be at the high end of the estimated range. If the Project faces funding constraints, the budget will necessarily be managed to a lower figure. Ultimately, expenses will be constrained to the fixed amount of annual funding processed through the City as well as any other sources of revenue independently raised by the non-profit entity.

In addition to City contributions, the HR&A study identifies a number of funding options for the non-profit entity: fundraising (including federal and provincial sources), sponsorships and earned income. It is expected that the non-profit entity will develop these revenue sources and City funding will decrease as a share of total expenses in future years. The parties acknowledge the need for sustainable and predictable funding for the Project beyond the eight year start-up period. Therefore, City staff will work with the non-profit entity to develop a viable long-term (i.e., post-2023) financial strategy for Project: Under Gardiner and will bring this forward to Council for consideration by June 30, 2021.

The partners have already undertaken considerable fundraising activity. The City has submitted an application for funding through the Canada 150 Fund to support a major sesquicentennial festival for the launch of the Project: Under Gardiner in July 2017, as well as other first year programming. The Toronto Office of Partnerships is currently working with partners to identify additional sponsorship and philanthropic opportunities to support the Project.

This report also details the recommended preferred Alternative Solution in the Municipal Class Environmental Assessment (EA) study for the crossing of Fort York Boulevard. The recommended Alternative Design is a suspended pedestrian and cycling bridge, with an estimated cost of $5 to $6 million funded entirely by Donor capital funds. This option was strongly endorsed by the public through the EA consultation process. It will create a signature piece of infrastructure for the area that attracts visitors and serves as an asset for the community.

Endorsement from Council will enable completion and filing of the Environmental Study Report with the Ministry of the Environment and Climate Change, as well as construction within the implementation timeframes of July 2017.

Additional items in this report include the results of the "Reclaim the Name" campaign for the Project, an update on the air quality assessment within the study area and incorporation of hiring opportunities for youth through various programs.

The Executive Committee recommends that:

1.  City Council authorize the Deputy City Manager, Cluster A, and the Deputy City Manager and Chief Financial Officer to proceed with an Alternative Financing and Procurement (AFP) model for the implementation of the George Street Revitalization project using a Design-Build-Finance approach as described in the report (June 14, 2016) from the Deputy City Manager, Cluster A, and the Deputy City Manager and Chief Financial Officer, and refer the project to the 2017 Capital Budget process for consideration by the City Manager and the Deputy City Manager and Chief Financial Officer with other City priorities.

2.  City Council authorize the Deputy City Manager, Cluster A, and the Deputy City Manager and Chief Financial Officer, in consultation with the City Solicitor, to initiate negotiations towards an agreement with Ontario Infrastructure and Lands Corporation (IO), under which Ontario Infrastructure and Lands Corporation and other third-party advisors could:

a.  act as a commercial procurement lead for the Alternative Financing and Procurement approach, through to execution of project agreements and financial close; and

b.  propose a scope of services, terms and estimated cost for professional services required to support the Alternative Financing and Procurement delivery model.

3.  City Council direct the Deputy City Manager, Cluster A, and the Deputy City Manager and Chief Financial Officer to seek funding options for the George Street Revitalization project from the Government of Canada's 10-year Social Infrastructure Plan and from the Province of Ontario.

4.  City Council authorize the General Manager, Shelter, Support and Housing Administration, to begin implementing the Seaton House transition plan, with funds available in the Shelter, Support and Housing Administration 2016 Approved Capital Budget.

5.  City Council authorize the General Manager, Shelter, Support and Housing Administration, to negotiate with Mental Health Program Services of Metropolitan Toronto (commonly known as Habitat Services) for the purchase of service for up to 150 units of housing with access to on-site supports, as described in the report (June 14, 2016) from the Deputy City Manager, Cluster A, and the Deputy City Manager and Chief Financial Officer and endorsed by City Council in November 2015, and submit a business case for consideration by the City Manager and the Deputy City Manager and Chief Financial Officer as part of the 2017 budget process.

6.  City Council direct the General Manager, Shelter, Support and Housing Administration, to approach the Province and request enhanced funding to provide additional supports as needed for clients housed in Habitat Services supportive housing units and to support clients with serious and persistent mental health issues moving into scattered site housing.

7.  City Council direct the Deputy City Manager, Cluster A, and the Deputy City Manager and Chief Financial Officer to report back by December 2016 to Executive Committee and Council with a status update on negotiations with Infrastructure Ontario and recommendations, if any, on terms and estimated costs for professional services required to support the Alternative Financing and Procurement procurement, further refined cost estimates, a governance structure, and an updated project schedule.

In November 2015, City Council endorsed the project scope for the George Street Revitalization (GSR) and the Seaton House transition plan.  Council directed staff to retain procurement option consultants and to report back by June 2016 on the recommended delivery model, the implementation funding needed and the resulting refined capital cost estimates for the revitalization and the Seaton House transition plan.  This report fulfils that directive.

As a result of the work undertaken by Ernst and Young Orenda Corporate Finance Inc. (EY), it is evident that the City stands to gain from a range of benefits available through a Public-Private-Partnership (P3), referred to by the Province of Ontario as Alternative Financing and Procurement (AFP).  The Gardiner Rehabilitation Project, approved by Council in September 2015, will be the City's first P3 project.

On the basis of Ernst and Young Orenda Corporate Finance Inc.'s findings and the extensive due diligence completed on the George Street Revitalization project over the past two years, staff recommend a Design-Build-Finance (DBF) procurement and delivery model.  A Design-Build-Finance model will yield an estimated Value for Money (VFM) of 8.1 percent, equivalent to $43.9 million on a present value basis.  A Design-Build-Finance model transfers the responsibilities and associated risks for the design, construction and financing to the private sector and leverages on project investments made to date.  A Design-Build-Finance model combines various aspects of project delivery under one contract, allowing for the bidding consortium to coordinate activities, realize economies of scale, be innovative with respect to design and scheduling, and manage potential cost escalation risks.  As a P3 model, construction payments for a Design-Build-Finance are made only upon substantial completion, projected at 2022 or beyond. 

Based on a Design-Build-Finance model, the revised construction cost estimate for the project is $498.8 million which includes $155.6 million in quantified retained risk which may or may not materialize. With the Seaton House transition cost estimate of $50 million and project expenditures to date of $13.2 million, the total capital cost for the George Street Revitalization is estimated at $562 million of which $475.2 million remains unfunded. 

This report recommends that the funding for the George Street Revitalization project be considered as part of the 2017 budget process with other City priorities.   It also recommends that the City initiate negotiations towards an agreement with Ontario Infrastructure and Lands Corporation (IO), to propose a scope of services under which Ontario Infrastructure and Lands Corporation could act as the commercial procurement lead.  Staff will report back with a status update on negotiations.

The report also provides an update on the status of the Seaton House transition plan.  Staff have been working with key stakeholders to develop a comprehensive transition plan for clients.  The plan, with a Housing First approach, includes purchase of service of up to 150 supportive housing units and 200 housing allowances.  The plan also considers best practices for transitioning a vulnerable population and involving clients in decision making.  Health and other forms of support are being identified with the clients and service partners.  The report seeks Council authority to begin implementing the Seaton House transition plan, with funds available in the Shelter, Support and Housing Administration (SSHA) 2016 Approved Capital Budget.

As directed by Council in November 2015, this report also provides a status update on negotiations with the Province of Ontario for the terms of possible rights to acquire the property and buildings at 311 Jarvis Street and 354 George Street.  The site, across the street from Seaton House, could be developed for affordable and mixed housing and other uses once vacated in 2022.  The Province is receptive to dialogue with the City regarding the future use of those properties.

The Executive Committee recommends that:

1. City Council:

a.  approve the provision of a construction loan guarantee (the "Construction Loan Guarantee") on behalf of the YMCA of Greater Toronto ("YMCA") to their lender, Ontario Infrastructure and Lands Corporation ("IO") (the "Lender"), to fund  the construction of a YMCA community centre at 505 Richmond Street West (the "Project"), in an amount not to exceed $30.0 million, inclusive of all interest costs payable by the YMCA, for a period ending upon substantial completion of the Project, for the purposes of allowing the YMCA to secure $30.0 million in construction financing from the Lender to complete the construction of the Project; and

b.  approve the provision of a capital loan guarantee (the "Capital Loan Guarantee") on behalf of the YMCA to the Lender, in an amount not to exceed $9.5 million, inclusive of all interest costs payable by the YMCA, for a period commencing upon substantial completion of the Project for a term not to exceed 30 years, for the purposes of allowing the YMCA to secure a fixed-term amortizing mortgage to be provided by the Lender for any remaining portion of the construction loan following completion of Project construction.

2.  City Council authorize the Deputy City Manager and Chief Financial Officer to negotiate and the City to enter into the Construction Loan Guarantee and the Capital Loan Guarantee (together the "Guarantees") and all related agreements including the agreements identified in the Term Sheet attached as Appendix A to the report (June 14, 2016) from the Deputy City Manager, Cluster A, the Deputy City Manager, Cluster B and the Deputy City Manager and Chief Financial Officer, which agreements shall be on terms and conditions as outlined in Appendix A to the report (June 14, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer, together with such other or amended terms and conditions, and ancillary agreements, as are acceptable to the Deputy City Manager and Chief Financial Officer and in a form satisfactory to the City Solicitor.

3.  City Council deem the Guarantees to be in the interest of the City.

4.  City Council authorize the City to enter into a Community Use Agreement with the YMCA for the Project, having a term ending 30 years after commencement of operation, substantially on the terms set out in Appendix B to the report (June 14, 2016) from the Deputy City Manager, Cluster A, the Deputy City Manager, Cluster B and the Deputy City Manager and Chief Financial Officer, and on such other terms and conditions deemed necessary and appropriate by the City Solicitor and the General Manager, Parks, Forestry and Recreation.

5.  City Council direct the Chief Planner and Executive Director, City Planning, to allocate those funds secured for community services and facilities from the developments identified in Appendix C to the report (June 14, 2016) from the Deputy City Manager, Cluster A, the Deputy City Manager, Cluster B and the Deputy City Manager and Chief Financial Officer towards this Project, including any increases as a result of indexing at the time of payment.

6.  City Council direct the Chief Planner and Executive Director, City Planning, to prioritize this Project as a community benefit for future development applications within, or within close proximity of the King Spadina Secondary Plan area until such time that the City's contribution of $19.0 million plus its share of accrued interest is fully recovered.

7.  City Council authorize payment by the City of up to $19.0 million, plus interest accrued on the City's share of Project cost (2/3 of the capitalized interest from the construction period) to the YMCA or its Lender to repay a portion of the construction loan upon substantial completion of the Project, on terms and conditions satisfactory to the Deputy City Manager and Chief Financial Officer and the General Manager, Parks, Forestry and Recreation, and in a form satisfactory to the City Solicitor.

8.  City Council direct the Deputy City Manager and Chief Financial Officer, should there be insufficient Section 37 and Section 45 funds available from Ward 20 at the time the payment referred to in Recommendation 7 above is required to be made, to report to Council on a source of  funds to fulfill the City's funding contribution to the Project which funds are to be recovered from future Section 37 and Section 45 funds in Ward 20, with interest charged on the account at 3 percent per annum, until such time that all the funds advanced are recovered.

9.  City Council authorize and direct appropriate City Officials to take such action as may be necessary to implement the foregoing.

In September 2015, City Council adopted a report from the General Manager, Parks, Forestry and Recreation, and Chief Planner entitled '505 Richmond Street West – Proposed YMCA Centre', and in doing so, indicated City Council's support of a YMCA centre as an appropriate use in the redevelopment of this formerly City owned-property, now owned by Build Toronto (the "Project").  Council also agreed, in principle, that existing and future Section 37 and 45 funds from Ward 20 be used to fund the City's two-thirds share of construction cost with the YMCA contributing the other one-third share.

The obligations and business terms between the numerous parties involved have now been detailed, and are described in the body of this report and summarized in the attached term sheet for City Council consideration.  The YMCA construction and fit-out cost estimate for the proposed recreation centre is approximately $30 million.  Build Toronto, on behalf of the City, will contribute the land value to the YMCA at nominal cost.  The YMCA will enter into a 'Guaranteed Maximum Price' construction contract with the developer for the 'shell' of the facility with an option for fit-out by the same developer.  

The YMCA will enter into a construction financing agreement with Infrastructure Ontario (IO) for the full construction cost, which will be converted to a long-term mortgage (up to thirty years) at substantial completion.  The City will advance its two-thirds share ($19 million plus accrued interest) at substantial completion (expected by the end of 2019), and the YMCA will be obligated to fund the balance of the construction cost.  The City will be required to provide a loan guarantee to IO on behalf of the YMCA for $30 million through the construction phase, which guarantee will be reduced to $9.5 million at substantial completion to support the YMCA's construction take-out mortgage.  The actual amount of the mortgage to be guaranteed is expected to be less depending on the outcome of the YMCA's fundraising for this project.

Funds for community services and facilities pursuant Section 37 and 45(9) of the Planning Act  from Ward 20 in the amount of approximately $5.3 million, as listed in Appendix C, have been secured through agreements with the City and are able to be allocated by the Chief Planner toward this Project when those developments proceed.  In some cases the funds have already been received.  In one case, a companion report will be brought forward by City Planning through Toronto East York Community Council to authorize a redirection of funds for this purpose.  City Planning advises that there are numerous other development projects pending and others that are contemplated within and around the King Spadina Secondary Plan Area which could result in by-laws that include Section 37 contributions.  A recommendation has also been included providing that the Chief Planner be directed to prioritize this Project as a community benefit in the context of pending and future development applications until such time as related Section 37 and 45 funds raised in this area are sufficient to pay the City's contribution to this project.  If there is a shortfall in raising the City contribution to the project of $19 million (plus 2/3 share of accrued interest) at substantial completion, the City will advance its funding obligation from a source to be determined at that time, to be recovered from future Section 37 and 45(9) funds in Ward 20.  

City Corporate Finance staff have reviewed the YMCA's business model and pro-forma for this project, and are satisfied that the business model can support the proposed mortgage of up to $9.5 million over the thirty year (or less) term of the IO loan.  The City will require that various agreements be entered into to protect the City's financial interest during both the construction phase and the community-use operating term.  

The YMCA will enter into a 30-year community-use agreement with the City.  The YMCA will also be responsible for all operating and life-cycle costs of the facility.  If the YMCA does not meet its obligations, the City can assume control of the facility.  At the end of the 30-year operating period, there will be no further obligation on the YMCA, and the YMCA is free to continue operations on site or sell to a third party (with the City having a first option to purchase), and in which case the City shall be reimbursed for the fair market value of the land at that time.

The Executive Committee recommends that:

1.   City Council approve the City of Toronto's participation in Toronto Global for an initial three year period, ending March 31, 2019 subject to the negotiation  and execution of a three year funding agreement with Toronto Global and the Municipalities of Brampton, Mississauga and Caledon; the Regions of Durham, York and Halton, (the "Funding Agreement") in a form satisfactory to the City Manager, the City Solicitor and the Deputy City Manager and Chief Financial Officer and further subject to the following:

a.  the City's annual contribution amount for each year being $890,412 with adjustments in the first year for transition aspects described in the report (June 13, 2016) from the Deputy City Manager and Chief Financial Officer and the General Manager, Economic Development and Culture, such adjustments and written undertaking to be agreed by the Board of Directors of Invest Toronto, the City Manager, the City Solicitor and the Deputy City Manager and Chief Financial Officer;
 

b.  the Province of Ontario and the Government of Canada committing to enter into funding agreements with Toronto Global in the amount of $2.5 million per year for at least three years;
 

c.  the Funding Agreement is to include a detailed business plan to the satisfaction of the General Manager, Economic Development and Culture with vision, mission, governance, organization structure, services, sales strategies, marketing and branding directions, specific performance metrics detailing the targeted deliverables and co-ordination protocols.

d. that the Funding Agreement and/or by-laws of Toronto Global, as appropriate and to the satisfaction of the City Manager and the City Solicitor, require: 

1.  public meetings of the Board of Directors and its committees;

2.  public annual reporting on key performance indicators and the expenditures of directors, officers and other senior staff related to business travel, conferences and training, hospitality and protocol; and

3.  a right of access to information in accordance with the principles outlined in section 1 of the Municipal Freedom of Information and Protection of Privacy Act.

2.  City Council direct that the business and affairs of Invest Toronto be wound up after an orderly transition to Toronto Global and request that the Board of Directors of Invest Toronto, following such consultation with City staff as necessary:

a.  report to the shareholder on the full details of the transition process; and

b.  submit for shareholder approval a proposal for the winding up of the business and affairs and distribution of the assets of the corporation.

3.  City Council direct Toronto Port Lands Company (TPLC) to continue to provide grants to Invest Toronto at the rate of $2.7 million per annum until Invest Toronto ceases operations and to pay any portion of this amount not required by Invest Toronto in 2016 to the City for the purposes of funding the City's first year obligation to Toronto Global. City Council further direct the Deputy City Manager and Chief Financial Officer to determine through the 2017 Budget process the appropriate source of funding for subsequent years.

4.  City Council authorize the General Manager, Economic Development and Culture to negotiate and execute the Funding Agreement with Toronto Global in accordance with the above recommendations.

Since the last update report considered by City Council at its September 30, 2015 meeting, significant progress has been made towards transitioning from the interim non-profit "Newco" to a new, permanent, GTA Regional Foreign Direct Investment (FDI) attraction agency to be named "Toronto Global".  This report provides a high level overview of activities to date and recommends the following:

That the City of Toronto become a funding party of Toronto Global, together with the Municipalities of Brampton, Mississauga and Caledon; the Regions of Durham, York and Halton; the Provincial and Federal Governments; and that the General Manager of Economic Development and Culture be authorized to negotiate and sign a Funding Agreement subject to approval by the, City Manager, City Solicitor and the Deputy City Manager and Chief Financial Officer consistent with terms set out in this Report.

That Invest Toronto be closed after an orderly transition to Toronto Global and Invest Toronto's Board be requested to report to the shareholder on the full detail of the transition process and to work with the General Manager of Economic Development and Culture to negotiate a financial resolution with Toronto Global of all the transition matters described in this Report.

Invest Toronto's Board of Directors be requested, following such consultation with City staff as necessary, to submit for shareholder approval a proposal for the winding up of the business and affairs, distribution of the assets and dissolution of  Invest Toronto.

That Toronto Port Lands Company (TPLC) be directed to continue to provide a grant to Invest Toronto at the current rate (annual amount of $2.7 million) until Invest Toronto stops operating as an FDI agency at which time TPLC pay any portion of the budgeted Grant not required by Invest Toronto in 2016 to the City for the purposes of funding the City's first year obligation to Toronto Global. Thereafter, the funding source for Toronto Global is to be determined through the 2017 budget process.
 

Efforts to establish Toronto Global have involved the Cities of Toronto, Mississauga, Brampton and Caledon; the Regions of Halton, York and Durham; the Province of Ontario and the Government of Canada. The Province provided $730,000 in seed funding for start-up costs and to help build consensus on Toronto Global's strategic priorities and operational model. The interim CEO has convened and chaired regular meetings of a working group comprised of Economic Development Officers (EDO) from the funding municipalities to advance these activities. The Province has committed $2.5 million per year for three years.  The Federal government is currently seriously considering a funding commitment of $2.5 million per year for three years.

Based on past experience and background research undertaken in the lead-up to Toronto Global, it is anticipated that the City will realize an increased number of Foreign Direct Investment leads arising from a more resourced and better co-ordinated regional Foreign Direct Investment attraction agency.

The Executive Committee forwards the item to City Council without recommendation.

The Executive Committee:

1.  Requested the General Manager, Parks, Forestry and Recreation, Chief Planner and Executive Director City Planning and the Deputy City Manager and Chief Financial Officer report directly to Council on July 12, 2016, the report to include:

a.  issues in other shared use facilities where there is conflict between the school board and the community centre;

b. the number, and examples, of similar cost-sharing agreements with the Toronto District School Board and other school boards in the area;

c. a comparison of the number of parking spaces for this project to the number at similar facilities;

d. other funding mechanisms which may be required to complete Phase 2 of the project, in the event that Section 37 and Section 45 funds are not sufficient to cover the City's costs;

e. the impact on other City priorities, in the event that Section 37 and Section 45 funds are not sufficient to cover the City's costs;

f. the impact on Midtown in Focus, should Section 37 and Section 45 funds be allocated to cover the City's costs;

g. the cost to the City should it choose to buy the land;

h. an assessment of the project relative to those other areas seeking public resources;

i. similar opportunities in other parts of the City.

The purpose of this report is to seek City Council approval to work collaboratively with the Toronto District School Board (TDSB) to create a project to be known as the Davisville Aquatic and Community Recreation Centre currently estimated at approximately $23.942 million. 

The project will be delivered in two phases and will be included as part of the 2017 – 2026 Parks, Forestry and Recreation Capital Budget Submission. 

Phase 1 will be the commitment to the TDSB of $6.807 million towards the design in 2017 and construction starting in 2018 for the new Davisville Junior Public School in order to facilitate community hub components which include an expanded gymnasium and underground parking in the TDSB portion of the new school.  The new 3-storey school design will result in a much smaller footprint and will allow for room on the school's site for the City to construct a Phase 2 city-owned and operated aquatic and community recreation facility approximately 30,000 square feet to expand on the recreation programming already being delivered in the community at the existing school.     

Operating costs based on similar-sized recreation facilities are estimated at $0.534 million in 2016.  Anticipating completion in 2023, projected operating costs for the new community recreation facility are estimated to be $0.626 million assuming an annual inflation rate of 2 percent.

This is a time-sensitive opportunity as the Province has already approved the funds necessary for the Davisville Junior Public School redevelopment. The TDSB is imminently planning to commence with a Request for Proposal for design in 2016 and requires the City's commitment of $6.807 million in order to consider the 3rd storey design vs the standard 2-storey design.

The Executive Committee recommends:

1.  City Council direct the Deputy City Manager, Cluster B, and the Chief Planner and Executive Director, City Planning in partnership with the Toronto Transit Commission and Waterfront Toronto, to initiate Phase 2 of the Waterfront Transit "Reset" for further development and costing of alignment concepts, detailed analysis of transit operations and ridership, identification of priority segments, as well as the creation of a Business Case and implementation strategy for delivering a coordinated waterfront transit solution.

2.  City Council direct the Deputy City Manager, Cluster B, and the Chief Planner and Executive Director, City Planning to report back on the results of Phase 2 of the Waterfront Transit "Reset" in the second quarter of 2017.

3.  City Council direct the Deputy City Manager, Cluster B to submit for Council's consideration as part of the 2017 Budget process, a funding request to initiate a 30 percent preliminary design by the Toronto Transit Commission for the extension of streetcar service from the Exhibition Loop to the Dufferin Gate Loop, in accordance with the approved Environmental Assessment Modification Report (2008.PG17.10), and to be coordinated with plans to replace the Dufferin Street bridge over the Gardiner Expressway and Lake Shore West Rail Corridor.

At its meeting of November 3 and 4, 2015, City Council directed staff to work with the Toronto Transit Commission and Waterfront Toronto on a comprehensive review of waterfront transit initiatives and options (Item EX 9.9).  An external consultant, Steer Davies Gleave, was retained to assist staff with the review.  The study area is from Long Branch in the west to Woodbine Avenue in the east, and south of the Queensway/Queen Street.

The Waterfront Transit "Reset" was divided into two phases. Council approved funding for Phase 1 of the "reset" for the following work program items: review all relevant background material; create an overall study vision with related objectives; develop a preliminary list of improvement concepts; consult with the public and stakeholders; identify preferred concepts for further study; and develop a scope of work for Phase 2.

The completion of the Phase 1 work has reinforced the importance of a comprehensive waterfront transit solution from Long Branch to Woodbine Avenue, which has not been realized to date. This is supported by the public and stakeholders, by previous studies, and by recent trends in population and employment growth in the waterfront.

One of the first tasks in Phase 1 was to conduct a complete review of the history of waterfront transit planning since 1995.  It is clear from the review that transit planning has been incremental in terms of undertaking individual studies, although there have been some broader policy and network-focused efforts through the Official Plan, Official Plan Update (Feeling Congested?), and the Central Waterfront Secondary Plan.

A vision statement was developed early on in the study as a foundation for defining the future waterfront transit network. It also served as a reference point for discussions with the public and stakeholders. The vision is as follows:

To provide high quality transit that will integrate waterfront communities, jobs, and

destinations, and link the waterfront to the broader City and regional

transportation network.

This vision recognizes the wide variety of land uses that transit must serve, and the importance of considering the waterfront in the context of current and emerging transit initiatives in the City.  These major initiatives include SmartTrack, the Scarborough Rapid Transit Network, the Relief Line, and Metrolinx including the Regional Express Rail (RER), Electrification of the GO Transit Corridors, updated GO Station Assessment and the "The Big Move" Regional Transportation Plan update.   In terms of the overall City transit network, it is clear that there is a significant gap in the higher order transit network along the waterfront, and this gap coincides with areas of major future population and employment growth.

Following the vision for waterfront transit and a preliminary assessment of land use and travel patterns, the study area was divided into four distinct geographic segments. Within these four segments, a total of 25 initial transit improvement concepts were developed. Next, using City Planning's Feeling Congested? transit projects evaluation framework and considering public and stakeholder feedback, the 25 initial concepts were reduced to a list of 16 by the study team. The initial list of concepts and the shortened list that are the subject to further analysis in Phase 2 are all documented in this report.

Phase 1 of the Waterfront Transit "Reset" has identified three main findings/directions.

First, the importance of completing Phase 2 has been reaffirmed.  In particular, Phase 2 will focus on unresolved areas of the network with the potential to add significant transit network benefits: the East Bayfront and the extension of transit into the Port Lands, and the section from Legion Road and Lakeshore Boulevard to Exhibition Place. 

A preliminary Work Plan for Phase 2 of the Waterfront Transit "Reset"  is included in this report. To summarize, Phase 2 will include (with focus on the areas of the network identified above): further development of the preferred transit improvement concepts for the complete study area; transit modelling analysis; a more detailed comparative evaluation of alternatives; coordination and consultation with Metrolinx; identification of a preferred network solution, including functional plan drawings to a 5 percent level of detail and associated cost estimates; public and stakeholder consultation; and a Business Case to consider the potential strategic, economic, financial, deliverability and operational impacts of the proposed solution.

Phase 2 will conclude with recommendations for advancing a preferred waterfront transit solution through the Transit Project Assessment Process (TPAP). This will be done so that priority components can be planned and designed quickly, and be ready for implementation once funding becomes available.

The second key finding of the Waterfront Transit "Reset" is that there is an opportunity to move to preliminary design on extending the existing exclusive streetcar network from the Exhibition Loop to the Dufferin Gate Loop, through the northwest portion of Exhibition Place. It is recommended that Toronto Transit Commission staff initiate a 30 percent level of design for this EA-approved section of network, with funding to be identified through the 2017 capital budget process. Design work would be coordinated with the current plan to replace the Dufferin Street bridge connection across the Gardiner Expressway and Lake Shore West Rail Corridor.  The extension would have the following benefits: 1) increased transportation network connectivity and flexibility; 2) improved transit service to the Liberty Employment Area and Exhibition Place; and, 3) potential relief of transit congestion on the 504 King Streetcar, and other Toronto Transit Commission routes.

The third key direction of the "reset" is to support the Toronto Transit Commission's transit service improvements that support the waterfront network vision.  This extensive list of improvements is documented in the report, but some of the highlights include: 1) 188 Kipling Express bus service, implemented in early 2016, between the Kipling Subway station and Lake Shore Boulevard West; 2 ) a revision to the 72 PAPE bus route, implemented in June 2016, that has restored a connection with Union Station, and provides new service to Queens Quay East; and, 3) restoration of continuous service on the 501 Queen Streetcar, timing subject to delivery and rollout of the new LRV's, eliminating transfers at the Humber Loop.

In conclusion, the Phase 1 work described in this report is an important step forward in the realization of a comprehensive transit network vision for the waterfront. This vision, along with the transit improvement concepts that would achieve it, were generally well received by the public and stakeholders. There is an overall public expectation that completing the work and implementing solutions will be a key priority for the City, the Toronto Transit Commission and Waterfront Toronto.

In view of these findings, staff recommend that City Council approve funding to complete Phase 2 of the Waterfront Transit "Reset" and authorize staff to begin 30 percent design for the extension of the exclusive streetcar network from the Exhibition Loop to the Dufferin Gate Loop.

The Executive Committee recommends that:

1.  City Council recognize the Province of Ontario's June 14, 2016 announcement to initiate the planning and technical analysis to build a new freight corridor that will by-pass the Bramalea to Georgetown section of the Kitchener GO corridor (The Missing Link), and direct the Deputy City Manager, Cluster B and the Chief Planner and Executive Director, City Planning to participate in further discussions with Metrolinx, other municipalities, levels of government and transportation agencies to consider this plan, and request the Chief Planner and Executive Director, City Planning, to report back with an update on the Missing Link initiative within 12 months, or sooner if progress necessitates such action.

2.  City Council direct the Deputy City Manager, Cluster B and the Chief Planner and Executive Director, City Planning  to continue negotiations with Metrolinx to secure a new multi-modal GO Station at Bloor Street, a Community Improvement Plan for the study mitigation area, a multi-use path and connection south to the West Toronto Railpath, a design solution and mitigation strategy for the rail corridor intersection at Dupont Street, and to participate in the project Community Advisory Committee.

At its meeting of December 9 and 10, 2015, City Council, in considering item PG8.13, "Davenport Community Rail-Rail Grade Separation", directed the Chief Planner and Executive Director, City Planning, to report in early 2016 on the "Missing Link" initiative and its merits as a key element of the freight rail network serving the City and the GTA.  City Council also opposed the Davenport overpass grade separation in favour of a tunnel option, and requested that Metrolinx reconsider this option.  Despite City objections Metrolinx launched the formal Transit Project Assessment Process (TPAP) for the overpass option in January 2016 and the Notice of Completion for the project was issued May 26, 2016.

At this juncture, there is little opportunity to request reconsideration of the project recommendation for an overpass.  The Minister for the Ministry of the Environment and Climate Change (MOECC) may only require further consideration or conditions where a matter is of provincial importance in relation to the natural environment or cultural or heritage values, or where a constitutionally protected aboriginal interest is involved.  The Minister’s response to this project is anticipated August 2nd of this year.  In light of Metrolinx's decision to undertake the overpass option, and with no formal options to object, City staff are prepared to continue discussions with Metrolinx, the local community and elected officials to address the outstanding issues of concern.

On June 14, 2016 the Province of Ontario announced its plans to expand GO Transit rail service to the Waterloo Region.  The Province, through its agency Metrolinx, secured an agreement-in-principle with CN to allow GO Regional Express Rail (RER) to be built along the Kitchener GO corridor.  The agreement-in-principle also provides direction to initiate a planning and technical analysis to build a new freight corridor by-pass that would divert most of CN's rail activity on the Kitchener GO line between Bramalea and Georgetown.  The by-pass could effectively function as the Missing Link (see Maps 1 and 2).  This is a timely and welcomed announcement by the Province, as the Missing Link has the potential to also redirect freight traffic currently using the CP North Toronto rail corridor that runs east-west through the City.  It is recommended that City Council recognize the Provincial announcement to initiate the planning and technical analysis to build a new freight corridor by-pass, and direct staff to participate in further discussions with all relevant parties.

The Missing Link

The impetus for a review of the Missing Link initiative was led by the City of Mississauga and jointly commissioned in early 2015 by Mississauga and the cities of Cambridge and Toronto, and the Town of Milton.  The review was undertaken by the IBI Group, and a report was produced in August, 2015, entitled "Feasibility Study and Business Case of Constructing the Missing Link".  The purpose of this study was to investigate the feasibility of separating freight rail traffic from passenger rail traffic on the Kitchener GO rail corridor and Milton GO rail line.  Within the City of Toronto, this study has bearing on the CP freight rail line that intersects the Barrie GO rail corridor at grade, at the point of the currently planned Metrolinx Davenport grade separation, as well as the Kitchener GO rail corridor within which increased passenger rail service is being planned in the context of the City's SmartTrack initiative and Metrolinx's Regional Express Rail program.

The Feasibility Study, included as Appendix 1 to this report, concludes that the separation of freight and passenger traffic is possible if the majority of freight traffic is redirected to alternative freight rail corridors north of Toronto, requiring construction of a new rail connection within the City of Mississauga, i.e. the Missing Link.   Map 1 identifies the existing rail network and Map 2 shows the potential network with the Missing Link added.

City staff determined that the Missing Link is consistent with the City Official Plan policies to expand passenger rail service in the City and provide multi-modal travel options within Toronto.  The Missing Link also aligns with the Mayor's recently announced "Technology Corridor" between Toronto and Kitchener-Waterloo, and with better management of freight rail within Toronto.

Davenport Overpass

The Davenport Rail Grade Separation initiative on the Barrie GO rail corridor is part of the Metrolinx Regional Express Rail (RER) program, which envisions the expansion of GO Transit rail service across all seven corridors. RER will provide two-way, all day, GO service as frequent as every 15 minutes through electrification of provincially owned GO rail corridors. The RER program is expected to be delivered over the next ten years by Metrolinx. The City of Toronto supports this overall commitment to transit expansion in the Greater Toronto and Hamilton Area (GTHA).

In the spring of 2015, Metrolinx advised of their intention to conduct an Environmental Assessment under the streamlined Transit Project Assessment Process for the grade separation of the Barrie GO rail corridor and the CP North Toronto Subdivision rail line north of Dupont Street, and that the option under consideration is to elevate the GO corridor on an overpass structure above the CP rail line.  Metrolinx indicates the grade separation is needed to accommodate the increase in GO service, to minimize potential delays, and to ensure safety as GO trains are currently required to wait if a freight train on the CP line is crossing the Barrie corridor at the level interchange point.

The preliminary design for the overpass structure is approximately 1.4 km in length, beginning just north of Bloor Street West, rising to a height of approximately 8.4 m above the CP corridor, and returning back to the existing grade just south of Davenport Road.  Metrolinx refers to the reduced length of 570 m for a "guideway" structure on columns (not including the sections on berm), but the total length of the grade separation remains at 1.4 km.

In addition to the structure height, there will be noise mitigation walls integrated into the overpass structure, and overhead catenary with eventual electrification, that would add to the structure’s vertical dimension. By comparison, the total height (13.4 m) at the highest point is similar to a 4+ storey residential building.  A revised rendering of the proposed structure by Metrolinx is shown in Exhibit 1, and included as Appendix 2 to this report for reference.

The Transit Project Assessment Process (Ontario Regulation 231/08) sets out the steps to be followed for this study, including completion of an environmental project report containing a description of all studies undertaken in relation to the project, and consultation on those studies.  The process expressly removes the requirement to consider need, alternatives, and many local impacts typically considered in environmental assessments.  Significant preparatory analysis is required to develop the project concept, examine the potential environmental impacts of the option(s), consult and consider input, and identify measures to mitigate any impacts. 

Despite City objections the formal Transit Project Assessment Process process was launched January 2016 with the issuance of the Notice of Commencement, which began the official process by the proponent under the Environmental Assessment Act.

Significant planning issues and community impacts have been identified to-date for the overpass option, and theyinclude, but are not limited to the following:

-  The need for a comprehensive vision for the areas immediately surrounding the overpass structure;

-  A multi-modal station at Bloor;

- Cycling connections from the proposed multi-use path to the West Toronto Rail Path;

- The need for a mitigation Strategy for the design of the overpass at Dupont Street;

- Issues of long-term operation and maintenance of the proposed Greenway;

- The need for a design resolution between the proposed Greenway and City Park land; and

- The need for resolution of outstanding Noise, Vibration and Safety issues. 

Notwithstanding the unresolved issues, the Notice of Completion was issued May 26, 2016, and City staff are prepared to continue discussions with Metrolinx, the local community and elected officials on the remaining issues of concern.

The Executive Committee recommends that:

1.  City Council amend the City's Investment Policy by adding "Deposit of cash in the High Interest Savings Account (HISA) program through the Municipal Finance Officers' Association of Ontario's ONE Investment Program" to the list of Authorized and Suitable Investments.

2.  City Council grant authority to staff to incorporate the changes into the City's Investment Policy.

This report provides a review of the annual investment returns realized in 2015 on the funds invested in the City's General Group of Funds. In 2015, the City's investment portfolio of $5.1 billion earned $137.8 million and yielded a return of approximately 2.7 percent.  These portfolios hold the City's working capital and the amounts designated for the City's reserves and reserve funds.  The investment results for other funds, such as sinking, pension and trust funds are reported separately.

Municipal Finance Officers' Association of Ontario's One Investment Program (ONE) is an eligible investment for the City under Ontario Regulation 610/06, Financial Activities (the "Regulation")  under the City of Toronto Act, 2006 (COTA).  Recently, ONE offers a High Interest Savings Account with interest rates for deposits more attractive than the rates offered by the City's bank. The proposed change to the Investment Policy is to add cash deposit in ONE's High Interest Savings Account program to the list of Authorized and Suitable Investments.

In compliance with the Regulation, a record of each transaction in the City's own securities is listed in Appendix A of this report.

Under the current Ontario legislation, municipalities are permitted to invest in either short-term money market fixed income securities or long-term bonds under prescribed rules.  Municipalities are limited in investing in equities, only through the One Equity Portfolio (jointly administered by Association of Municipalities of Ontario and The Municipal Finance Officers' Association).

A staff report, submitted earlier this year, notified City Council that the Province of Ontario has approved reforms to the Regulation late in 2015.  The reforms provide the City of Toronto with a framework to invest according to the prudent investor standard and are expected to enable the City to earn better risk-adjusted returns on its investments. This authority will come into force on January 1, 2018.  During the transition period before this date, a mandated independent investment board will be created and a new investment policy will be developed.

The Executive Committee recommends that:

1.  City Council adopt the recommendations and instructions to staff contained in Confidential Attachment 1 of the report (June 10, 2016) from the Deputy City Manager and Chief Financial Officer.

2.  City Council authorize the payment of funds required to carry out the instructions contained in Confidential Attachment 1 of the report (June 10, 2016) from the Deputy City Manager and Chief Financial Officer.

3.  City Council authorize the public release of Confidential Attachment 1 of the report (June 10, 2016) from the Deputy City Manager and Chief Financial Officer at the conclusion of the City Council meeting.

The purpose of this report is to provide Council with the results of the recent Canada Revenue Agency (CRA) Employer Compliance Audit regarding parking locations at all Toronto Paramedic Services (TPS) and Toronto Fire Services (TFS) work locations, and to obtain direction regarding the action to be taken to implement and respond to the results of the audit.  The City actions proposed in confidential attachment 1 and the treatment of TPS and TFS employees is the same with respect to similar CRA parking audits for the Police and other City employees.

The Executive Committee recommends that:

1.  City Council adopt the Community Asset Evaluation Framework, described in Appendix 1 of the report (June 13, 2016) from the Deputy City Manager and Chief Financial Officer and the Executive Director, Social Development, Finance and Administration, and the findings of the June 2016 evaluation of school properties as community assets in Toronto, reported in Tables 1 and 2 of the report (June 13, 2016) from the Deputy City Manager and Chief Financial Officer and the Executive Director, Social Development, Finance and Administration.
 

2.  City Council approve the following directions for five school properties, should these properties be declared surplus and approved for disposition:
 

a.  City Council authorize the Chief Corporate Officer to negotiate and submit an offer to the Toronto Lands Corporation for the acquisition of the property municipally known as 925 Albion Road (Thistletown Multi-Service Centre), funded from the remaining balance of the Land Acquisition Reserve Fund allocated to the School Lands Acquisition Framework  and with additional contribution of funding from the Parkland Acquisition Reserve Funds, and on such other terms and condition as may be acceptable to the Chief Corporate Officer in consultation with the Executive Director, Social Development Finance and Administration, and the General Manager Parks, Forestry and Recreation, and in a form satisfactory to the City Solicitor;

b.  City Council encourage the Government of Ontario to pursue its expressed interests in acquisition of the property municipally known as 155 McNicoll Avenue (McNicoll Public School) and in acquisition of the property municipally known as 65 Hartsdale Drive (Silver Creek Public School) properties; both of which are sites for delivery of provincially-funded children's mental health and developmental services;

c.  City Council direct the City Manager to work with the Ontario Government, in addition to encouraging their acquisition of the property at 155 McNicoll Avenue, to develop options to maintain public access to the green space behind the school building and to ensure that the childcare services currently offered in the building are able to continue on the site.

d.  City Council strongly encourage the Toronto District School Board and the Community Hubs Secretariat of Ontario to explore with all interested parties the feasibility of ongoing public use of all or a portion of the property municipally known as 200 Poplar Road (Sir Robert Borden Business and Technical Institute); and

e.  City Council direct the General Manager, Children's Services to work with the Toronto District School Board to relocate child care spaces from 100 Allanhurst Drive (Buttonwood Hill Public School) and ensure no net loss of spaces in the local community.

3.  City Council direct the General Manager Parks, Forestry and Recreation, the General Manager, Children's Services, the Deputy City Manager and Chief Financial Officer, the Director, Real Estate Services, the Director, Community Planning, Toronto and East York District, the Director, Real Estate Law Group and the Executive Director, Social Development, Finance and Administration, to work with Ward 18 and Ward 19 Councillors, Toronto Lands Corporation and the current tenants of 375 Dovercourt Road, to develop a business case for the potential severance purchase and/or loan guarantee, in order to secure increased parkland and preserve 200 child care and after school programs and report to the Executive Committee.

4.  City Council adopt the following "Eight Principles for Redeveloping School Properties for Strong Communities" and request that the school boards operating in Toronto, the Toronto Lands Corporation, the Ministry of Education, the Community Hubs Secretariat of Ontario and other relevant entities adopt these principles to preserve and maximize community benefit during the disposition of school properties:

a.  new development or additions to existing school facilities and lands must be consistent with the City's Official Plan and Council approved design guidelines;

b.  school boards must ensure that they accommodate long-term growth projections prior to disposing of school sites and coordinate with the local municipality on population growth planning;

c.  schools boards should accommodate any child care program that would be impacted by the disposition of a school within other school facilities to ensure that there is no net loss of child care space in the local community;

d.  redevelopment of school sites should accommodate community facility space that will be displaced as a result of the disposition of a school facility to ensure no net loss of community space in the local area;

e.  redevelopment of school sites should maximize both the onsite provision of public parkland and the provision of privately owned but publicly accessible open space;

f.  the provision of a full range of housing, including affordable housing, should be secured as part of any site generally greater than 5 hectares. Affordable housing will be encouraged on all sites that can support multi-unit redevelopment;

g.  built heritage resources will be evaluated prior to the disposition of a school site; and

h.  where appropriate, provision of joint facilities, either with the school board, the City, a private developer, or any combination thereof, for community service purposes, is encouraged.

5.  City Council direct the Executive Director, Social Development, Finance and Administration, in coordination with the Chief Planner and Executive Director, City Planning, the General Manager, Children's Services, the General Manager, Parks, Forestry and Recreation, and the Director, Real Estate Services, to work on a regular basis with school boards in Toronto to assess the City's interests in school properties as community assets and to report to Council as required.

6.   City Council recommend that the school boards operating in Toronto work with the City to assess the impact of new and planned transit and future growth when considering the disposition of school properties and to consider retaining some school sites as Core Holdings to provide flexibility to address future growth.

7.   City Council send a letter to the Minister of Education and the school boards operating in Toronto to acknowledge recently improved board-to-City communication related to surplus properties planning and to encourage the parties to strengthen board-to-board communication and disclosure on these matters.

8.   City Council direct the Deputy City Manager and Chief Financial Officer to report back to Council with options for replenishing the School Lands Acquisition Reserve Fund to $15 million by the 2018 budget cycle, in order to serve as a funding strategy for future surplus school property acquisitions.

9.   City Council direct the Director, Real Estate Services in consultation with the General Manager, Parks, Forestry, and Recreation, the General Manager, Children's Services and the Executive Director, Social Development, Finance and Administration, to prepare a business case outlining capital and operational financial considerations and referencing the City of Toronto June 2016 Review of Toronto District School Board properties as community assets as part of any request to utilize the school lands acquisition reserve fund for future acquisitions.

10.   City Council strongly encourage the Ministry of Education, the Community Hubs Secretariat and other relevant provincial ministries, to work with school boards to establish a publicly-accessible inventory of community agency tenants and community services provided in publicly-funded schools and an inventory of space available in schools for community use.

11. City Council request the Minister of Education to support a continuum of learning and the stabilization of early years and child care programs located in school buildings by undertaking the following five actions which have been developed collaboratively by the City of Toronto and Toronto District School Board, Toronto Catholic District School Board, Conseil scolaire Viamonde, and Conseil scolaire de district catholique Centre-Sud:

a.  improve the funding formula in order to fully fund the occupancy cost of early learning and child care space in schools directly to the school boards;

b.  ensure the funding formula takes into account the higher cost of building, operating and maintaining spaces for young children;

c.  ensure the funding formula for early learning space is not a per person rate, but a per room rate;

d.  ensure the funding formula accounts for the incrementally higher cost of operating before- and after-school programs in shared spaces; and

e.  ensure that the school utilization formula reflects the improved funding formula and fully accounts for early learning space in schools.

12. City Council forward the report (June 13, 2016) from the Deputy City Manager and Chief Financial Officer and the Executive Director, Social Development, Finance and Administration to the Minister of Education, the Community Hubs Secretariat, and the four school boards operating in Toronto.

Toronto District School Board (TDSB) has identified up to twenty-three school properties for potential surplus declaration and disposition between 2016 and 2018/19.  This report documents the City's assessment and prioritization of these properties as community assets.

It is intended to help the City respond strategically, rather than reactively, when TDSB sites are circulated for sale.

To assess the school properties, City has developed a Community Asset Evaluation Framework which considers schools as sites for advancing equitable provision of child care, green space and community programming and for responding to future growth. 

The City has clarified that it is not opposed to the redevelopment of schools in principle, but does want to see school properties that represent significant community assets retained for continued public access and community use.  Moreover, the potential disposition of school sites needs to be carefully assessed against the future growth and natural life cycle changes of the various communities throughout the City.  The opportunity to establish new schools is limited in terms of access to appropriate sites and the high cost of land. The City encourages school boards to consider retaining some school sites as Core Holdings to provide flexibility to address future growth. 

Any discussion about the City's response to surplus school properties must be considered within the context of the City's severely constrained financial context, including $29 billion in unfunded capital projects, as reported by the City Manager in May 2016.

This report underscores that the City of Toronto lacks the financial resources and the mandate to retain provincially-funded public infrastructure, such as schools, in the public domain. Reflecting that there is broader public interest in retaining some of these sites, this review also helps to identify the wider range of provincial, public sector and community sector parties that have a role to play in securing surplus school buildings and school lands for continued public use, where needed.  The Province of Ontario has a responsibility to ensure that, where appropriate, publicly-owned infrastructure remains accessible for public purposes, and to address the school funding formula that is driving some school boards to sell off valuable community assets.

Given current and future capital and operating pressures, the City of Toronto's ability to purchase surplus school properties is severely constrained and limited to the highest-priority community assets at best. Out of the twenty-three TDSB properties reviewed, only one property was rated as a highest priority community asset: Thistletown Multi-Service Centre. This report recommends that the City negotiate to acquire Thistletown in order to protect community access to this site, which has been leased by the City for community services for nearly thirty years. 

Conditions shaping this review and the TDSB list of properties for consideration continue to be dynamic. The results of this review reflect current conditions as of June 2016. A profile of City interests in each of the twenty-three TDSB properties is included as an Appendix.

Working in collaboration, staff from Toronto District School Board, Toronto Catholic District School Board, Conseil scolaire Viamonde, and Conseil scolaire de district catholique Centre-Sud and City of Toronto Children's Services have defined five actions for the Ministry of Education to strengthen school funding and school utilization formulas in support of a continuum of learning, starting in the early years. When implemented these changes will facilitate cooperative working relationships between the City and school boards in relation to child care and early years programming delivered in school buildings.

The Executive Committee recommends that:

1.  City Council direct City Planning and request Build Toronto, in consultation with Real Estate Services, to lead a site planning and massing exercise for the current Etobicoke Civic Centre Complex lands and to advance the current site planning and massing exercise established by Build Toronto for the Bloor/Islington lands, to an extent sufficient to inform the business case for each site, and report back to City Council in the third quarter of 2017 with the results.

2.  City Council request Build Toronto to lead a design competition for the Westwood Theatre Lands, limited to establishing a new Etobicoke Civic Centre Complex and developing potential recommendations to the existing Build Toronto concept plans, and direct City Planning and Real Estate Services to provide advice and support to Build Toronto, and report back to City Council in the third quarter of 2017 with:

a.  results of the design competition; and

b.  a draft building program for a new Etobicoke Civic Centre.

3.  City Council direct the Chief Corporate Officer, in consultation with Build Toronto and City Planning, to establish a business case that considers the costs and revenues associated with the proposed plans for the Westwood Theatre Lands, Bloor/Islington, and current Etobicoke Civic Centre Complex lands, and report back to City Council in the third quarter of 2017 with:

a.  the cost and feasibility of relocating the Etobicoke Civic Centre Complex to the Westwood Theatre Lands;

b.  the cost associated with other proposed public spaces and/or community facilities; and

c.  potential revenues and/or funding sources, including revenue estimates from the sale of City-owned lands at the current Etobicoke Civic Centre Complex, Bloor/Islington and surplus properties near the Westwood Theatre Lands.

4.  City Council direct the Chief Corporate Officer, City Planning and the Affordable Housing Office, in consultation with Build Toronto, and to determine opportunities for affordable housing at the Westwood Theatre Lands, Bloor/Islington lands, and current Etobicoke Civic Centre Complex Lands through the business case and site planning process, and report back on such opportunities to City Council in the third quarter of 2017.

In 2007, City Council approved the urban design visions for City-owned lands at:

1.  Bloor/Islington (Northwest corner of Bloor Street West and Islington Avenue)

2.  Westwood Theatre Lands (Southeast corner of Bloor Street West and Kipling Avenue)

3.  Current Etobicoke Civic Centre Complex (Southeast corner of Burnhamthorpe Road and The West Mall).

The design exercise was known as the West District Design Initiative ("WDDI").  The report concluded that the Bloor/Islington site and the Westwood Theatre Lands were both suitable for accommodating a new West District Civic Centre.

City staff have completed a Location Evaluation Framework to evaluate Bloor/Islington and the Westwood Theatre Lands as a potential relocation site for a new Etobicoke Civic Centre Complex. The analysis determined that the Westwood Theatre Lands are more suitable for new Civic offices when compared to the Bloor/Islington site, due to improved overall accessibility, lower cost projections and greater City building opportunities.

The purpose of this report is to seek City Council support for the potential relocation of the Etobicoke Civic Centre Complex to the Westwood Theatre Lands, subject to a business case to be submitted in 2017 for City Council consideration. It should be noted that no funding exists for this project in the 2016-2025 Approved Capital Plan. Accordingly, given the City's $29 billion capital back log, this project would not proceed without a self‑financing business case, given current resource constraints.

The Executive Committee recommends that:

1.  City Council authorize the levy and collection of taxes for the 2016 taxation year on railway roadways and rights of way and on land used as transmission or distribution corridors owned by power utilities, in accordance with subsection 280 (1) of the City of Toronto Act, 2006 and subsection 257.7 (1) the Education Act.

2.  City Council request the Province of Ontario to enact regulations to prescribe a levy on Railway Roadway and Rights of Way and on Power Utility Transmission and Distribution Corridors for the 2016 taxation year, reflecting inflationary increases since 2005 when the current mature rates were reached.

3.  City Council request the Province of Ontario to adjust the acreage rate that applies to the Railway Roadway and Rights of Way and on Power Utility Transmission and Distribution Corridors annually in each future year to reflect an average annual inflationary increase.

4.  City Council, should the Province enact a new acreage rate that applies to the Railway Roadway and Rights of Way and on Power Utility Transmission and Distribution Corridors applicable for 2016, authorize staff to bring an amending bylaw to Council to enact the new rates. 

This report seeks Council authority for the introduction of the by-law necessary to levy and collect taxes for the 2016 taxation year on railway roadways and rights of way and on land used as transmission or distribution corridors owned by power utilities, totalling approximately $7.1 million in taxation revenue, of which the municipal share is $6.5 million and the provincial education share is $0.6 million.

The Executive Committee recommends that:

1.  City Council authorize the levy and collection of amounts for the 2016 taxation year on colleges and universities, public hospitals, and correctional facilities as authorized by Section 285 of the City of Toronto Act, 2006.

2.  City Council direct that the maximum prescribed amount of $75 be applied per provincially rated hospital bed, full time student, or resident place as prescribed by Ontario Regulation 121/07.

This report requests Council authority to adopt a by-law to levy amounts for the 2016 taxation year for colleges and universities, public hospitals, and correctional facilities (the "institutions"), estimated at approximately $17.8 million (annual "Heads and Beds" levy).

The Executive Committee recommends that:

1.  City Council adopt the confidential instructions to staff in Attachment 1 of the report (June 13, 2016) from the City Solicitor.

2.  City Council authorize the public release of the recommendations in Attachment 1 of the report (June 13, 2016) from the City Solicitor, if adopted, with the remainder of Attachment 1 to remain confidential at the discretion of the City Solicitor.

St. Michael's Hospital and the Hospital for Sick Children are concerned that potential development and associated construction could interfere with the flight paths for their respective heliports.  The Province has issued a Minister's Zoning Order that regulates development within these flight paths, but it will expire at the end of September 2017.  The City must contemplate the most effective approach towards regulating development within proximity to these hospitals.

The City Solicitor requires further directions.

The Executive Committee recommends that:

1. City Council approve the Open Door Affordable Housing Program to provide City financial incentives, the new Open Door Planning Service, and activate surplus public land for affordable housing.

2. City Council approve the five-year Open Door Affordable Housing Investment Plan Projections in the Financial Implications section of the report (June 8, 2016) from the Deputy City Manager, Cluster A, the Deputy City Manager, Cluster B and the Deputy City Manager and Chief Financial Officer, based on Council's approved annual targets of 1,000 new affordable rental homes and 400 new affordable ownership homes.

3. City Council request the Director, Affordable Housing Office in collaboration with the City Manager's Office to provide an update, annually, on the prior year results of the Open Door Program including funding allocations, incentives provided and other contributions from all sources on a go-forward basis.

4. City Council approve that the non-profit affordable ownership housing development applications where a minimum of 20 percent of the residential gross floor area of the development is affordable ownership housing be eligible for the Open Door Service.

5. City Council request the Director, Affordable Housing Office, to initiate a conversation with the affordable home ownership providers to explore opportunities to expand long term affordability.

This report fulfills City Council's December, 2015 request for the City Manager to report on the financial and administrative implications of the Open Door Affordable Housing Program.

Open Door is a program where the City contracts/secures affordable housing through a co-ordinated approach to financial incentives, funding, planning approvals and activation of public and private land. Implementation matters addressed in this report include:

-  a multi-year affordable housing investment plan to meet targets;

-  the streamlining of application processes for City affordable housing funding and incentives;

-  expanded planning supports, such as the new Open Door Service application review process; and

-  annual reporting on performance toward achieving targets.

Concurrent reports recommend the approval of a number of Open Door pilot projects that were reported to Council in December 2015.

The program's success is premised on ongoing federal/provincial housing investments and the scaling up of the capacity of the non-profit and private housing sectors to participate and produce affordable housing.  In this regard the recent 2016 federal and provincial budgets provide important new funding sources for affordable housing.

By accelerating the creation of affordable housing, Open Door will increase the opportunity for lower-income and vulnerable individuals and families to access safe, healthy and adequate homes. This will assist in improving Toronto's economic and social well-being and easing health, justice and social costs.

This report fulfills City Council's December, 2015 request for the City Manager to report on the financial and administrative implications of the Open Door Affordable Housing Program.

Open Door is a program where the City contracts/secures affordable housing through a co-ordinated approach to financial incentives, funding, planning approvals and activation of public and private land. Implementation matters addressed in this report include:

- A multi-year affordable housing investment plan to meet targets,

- The streamlining of application processes for City affordable housing funding and incentives,

- Expanded planning supports, such as the new Open Door Service application review process, and

- Annual reporting on performance toward achieving targets.

Concurrent reports recommend the approval of a number of Open Door pilot projects that were reported to Council in December 2015.

The program's success is premised on ongoing federal/provincial housing investments and the scaling up of the capacity of the non-profit and private housing sectors to participate and produce affordable housing. In this regard the recent 2016 federal and provincial budgets provide important new funding sources for affordable housing.

By accelerating the creation of affordable housing, Open Door will increase the opportunity for lower-income and vulnerable individuals and families to access safe, healthy and adequate homes. This will assist in improving Toronto's economic and social well-being and easing health, justice and social costs.

The Executive Committee recommend that:

1.  City Council authorize the Chief Corporate Officer (the "CCO") to negotiate, in consultation with the Director, Affordable Housing Office, the acquisition of the Property with Toronto Community Housing Corporation ("TCHC") for a nominal purchase price, and authorize the City to enter into an agreement of purchase and sale (the "Agreement") substantially on the terms outlined in Appendix "A" to the report (June 6, 2016) from the Deputy City Manager, Cluster A and the Chief Corporate Officer, and on such other or amended terms and conditions as may be acceptable to the Chief Corporate Officer, in consultation with the Director, Affordable Housing Office, and in a form satisfactory to the City Solicitor.

2.  City Council authorizes severally each of the Chief Corporate Officer, and the Director of Real Estate Services to execute the Agreement and any ancillary agreements and documents under the Agreement on behalf of the City.

3.  City Council authorize the Chief Corporate Officer to administer and manage the purchase of the Property from Toronto Community Housing Corporation, in consultation with the Director, Affordable Housing Office, including the provision of any consents, approvals, waivers and notices, provided that she may, at any time, refer consideration of any such matters (including their content) to City Council for its consideration and direction.

4.  City Council authorize the City Solicitor to complete the contemplated purchase transaction on behalf of the City, including paying any necessary expenses, amending the closing, due diligence and other dates, and amending and waiving terms and conditions, on such terms as the City Solicitor considers reasonable.

5.  City Council authorize the Chief Corporate Officer to declare the Property as surplus to the City's needs, for the purposes of entering into a 50-year lease with Dominus Capital Corporation, and take all necessary steps to comply with the City's real estate disposal process, as set out in Chapter 213 of the City of Toronto Municipal Code.

6.  City Council authorizes the City to accept the Offer to Lease from Dominus Capital Corporation, or a related corporation formed for the purposes of this transaction, for a term of 50 years, for the property municipally known as Block 36 North, substantially on the terms and conditions outlined in Appendix B to the report (June 6, 2016) from the Deputy City Manager, Cluster A and the Chief Corporate Officer, and on such other or amended terms and conditions acceptable to the Chief Corporate Officer, or the Chief Corporate Officer's designate, and in a form acceptable to the City Solicitor.

7.  City Council authorize each of the Chief Corporate Officer and the Director, Real Estate Services severally to accept the Offer to Lease on behalf of the City.

8.  City Council authorize the Chief Corporate Officer, or the Chief Corporate Officer's designate, to administer and manage the lease agreement, including the provision of any consents, approvals, notices and notices of termination provided that the Chief Corporate Officer may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

9.  City Council authorize the Director, Real Estate Services, in consultation with the Director, Affordable Housing Office, to make or provide its consent once it is the owner, to any regulatory applications by Dominus Capital Corporation or a related corporation and to grant a licence or licences to Dominus Capital Corporation for a term or terms of up to forty-two (42) months from the date of the City's acceptance of the Offer to Lease, for the purposes of entering onto the Property to carry out environmental testing and monitoring and other pre-development activities and authorizes severally each of the Chief Corporate Officer, and the Director of Real Estate Services to execute the applications, consents and licences.

10.  City Council authorize the Director, Real Estate Services, in consultation with the Director, Affordable Housing Office, to grant a licence or licences to provide access for the construction on the Property, at no cost, to Dominus Capital Corporation or a related corporation, over City property at the Mouth of the Creek and North Linear Park on terms and conditions satisfactory to the Director, Real Estate Services, and in a form approved by the City Solicitor.

11.  City Council authorize the Director, Affordable Housing Office, to submit a request to the Ministry of Municipal Affairs and Housing for funding through the federal/ provincial Investment in Affordable Housing for Ontario Program (Extension 2014-2020) – Rental Component, in the amount of $7,000,000 to be used by Dominus Capital Corporation for the development of the affordable housing units on the Property.

12.  City Council authorize the Director, Affordable Housing Office, to provide capital funding from the Development Charges Reserve Fund for Subsidized Housing (XR1116) in an amount not to exceed $6,400,000 to fund the expenses relating to the transfer from Toronto Community Housing Corporation, development and construction costs, including infrastructure  and environmental remediation.

13.  City Council authorize the Director, Affordable Housing Office to:

a.  egotiate and enter into, on behalf of the City, a municipal housing facility agreement, the City's "Contribution Agreement", with Dominus Capital Corporation or a related corporation, to secure the financial assistance, including the exemption from taxation for municipal and school purposes for a maximum duration of the affordable rental period, being provided and to set out the terms of the development and operation of the new affordable rental housing, on terms and conditions satisfactory to the Director, Affordable Housing Office, in consultation with the Deputy City Manager and Chief Financial Officer, and in a form approved by the City Solicitor; and

b.  execute, on behalf of the City, the municipal housing facility agreement, any security or financing documents or any other documents required to facilitate the funding process, including any documents required by Dominus Capital Corporation, or its related corporation to complete construction and conventional financing, where required.

14.  City Council authorize the City Solicitor to execute, postpone, confirm the status of, and discharge any City security documents registered as required by normal business practices.

15. City Council authorize that the development on the Property be exempt from the payment of development charges and be exempt from the payment of planning and park dedication fees and building permits under existing City policy.

16. City Council authorize the Director, Affordable Housing Office to designate the Property as social housing for the purpose of allowing all or part of the Property relief from normal parking standards.

17. City Council authorize that the appropriate City officials be directed to take the necessary action to give effect thereto.

This report recommends Council approve Dominus Capital Corporation as the successful proponent of a Request For Proposals to build and operate 80 affordable rental homes for 50 years on Queen’s Wharf Road (Block 36 North) in City Place (Railway Lands) in Ward 20 Trinity-Spadina (the "Property"). These homes will provide quality affordable housing for low-income individuals and families.  It also recommends that the City re-acquire the site from Toronto Community Housing for a nominal sum.

This initiative, in partnership with Toronto Community Housing, will be supported by federal/provincial funding of $7,000,000 and City funding, including contingences, of $6,400,000, consisting of $3,000,000 to reduce capital costs and ensure affordability and $3,400,000 for required site improvements (including soil remediation), physical infrastructure costs, development levies and public art contributions and the provincial portion of the land transfer tax.  As well, the City will provide other financial incentives and 15 rent supplements to make the housing more affordable to lower-income households.  Dominus will contribute $15.4 million to this initiative. The site will be leased to Dominus for 50 years for a nominal sum.

Proceeding with this development will activate a site that has remained undeveloped for 20 years and contribute to the City meeting its annual targets for new affordable rental housing in the Housing Opportunities Toronto Action Plan 2010-2020.

This report recommends Council approve Dominus Capital Corporation as the successful proponent of a Request For Proposals to build and operate 80 affordable rental homes for 50 years on Queen’s Wharf Road (Block 36 North) in City Place (Railway Lands) in Ward 20 Trinity-Spadina (the "Property"). These homes will provide quality affordable housing for low-income individuals and families. It also recommends that the City re-acquire the site from Toronto Community Housing for a nominal sum.

This initiative, in partnership with Toronto Community Housing, will be supported by federal/provincial funding of $7,000,000 and City funding, including contingences, of $6,400,000, consisting of $3,000,000 to reduce capital costs and ensure affordability and $3,400,000 for required site improvements (including soil remediation), physical infrastructure costs, development levies and public art contributions and the provincial portion of the land transfer tax. As well, the City will provide other financial incentives and 15 rent supplements to make the housing more affordable to lower-income households. Dominus will contribute $15.4 million to this initiative. The site will be leased to Dominus for 50 years for a nominal sum.

Proceeding with this development will activate a site that has remained undeveloped for 20 years and contribute to the City meeting its annual targets for new affordable rental housing in the Housing Opportunities Toronto Action Plan 2010-2020.

The Executive Committee recommends that:

1. City Council approve allocating up to $1.25 million from the Development Charges Reserve Fund for Subsidized Housing (XR2116) for up to 50 down payment assistance loans of $25,000 each to eligible purchasers of housing to be developed on the property currently known as 30 Tippett Road, under the terms of the City's Home Ownership Assistance Program.

2. City Council approve a change to the terms of the City's Home Ownership Assistance Program so that the down payment assistance loans no longer be forgivable after twenty years, but be repayable on sale of the home.

3. City Council approve up to $1.0 million from the Development Charges Reserve Fund for Subsidized Housing (XR2116) to provide capital assistance to Shiplake Properties Limited, or a related corporation, towards the development of 50 affordable rental units on the property currently known as 30 Tippett Road, in the form of a grant by way of forgivable loan.

4. City Council exempt the 50 new affordable housing units to be developed at 30 Tippett Road from taxation for municipal and school purposes for the term of the municipal capital facility agreement.

5. City Council authorize the Deputy City Manager and Chief Financial Officer to approve the waiving of all the development charges and planning fees for the affordable rental units to be developed on the property known as 30 Tippett Road.

6. City Council authorize the Director, Affordable Housing Office, to negotiate, enter into and execute, on behalf of the City, all affordable housing funding agreements, municipal housing facility agreements and any security, financing or other documents required with Build Toronto, the affordable housing developer, and any other party deemed necessary to facilitate the funding and incentives detailed in the report (June 8, 2016) from the Director, Affordable Housing Office, on terms and conditions satisfactory to the Director, Affordable Housing Office, in consultation with the Deputy City Manager and Chief Financial Officer, and in a form approved by the City Solicitor.

7. City Council grant authority to the City Solicitor to execute, postpone, confirm the status of, and discharge any City security documents registered as required by normal business practices.

This report recommends funding and incentives for 50 new affordable rental and 50 affordable ownership homes at 30 Tippett Road in Ward 10 York Centre. The affordable housing plan for this site resulted from a collaboration with Build Toronto and developer Shiplake Properties Limited, a subsidiary of which has entered into an agreement to acquire the site from Build Toronto.

Financial contributions for the 100 affordable homes are proposed from Build Toronto, the Federal and Provincial Governments, and the City.  An allocation from the Federal/Provincial Investment in Affordable Housing Program and funding from the City's Development Charges Reserve Fund for Subsidized Housing are recommended.

City Council adopted the Tippett Road Area Regeneration Study in July 2015 and directed the Director, Affordable Housing Office, to work with Build Toronto and the Regeneration Area property owners to deliver affordable rental and ownership homes.

On March 31 and April 1, 2016 City Council allocated federal and provincial funding and City funding and incentives for the first 100 affordable homes on the Build Toronto lands at 36 Tippett Road.  A concurrent report, A Program for 50 New Affordable Ownership Homes at 4, 6 and 9 Tippett Road, will provide federal, provincial and City funding for 50 additional affordable ownership homes on private lands in the Tippett Road Regeneration Area.  Combined, these three reports provide support for 250 affordable homes.

The Regeneration Area is bounded by Wilson Heights Boulevard, Wilson Avenue, Champlain Boulevard, Highway 401 and Allen Road in Ward 10 – York Centre.

This report recommends funding and incentives for 50 new affordable rental and 50 affordable ownership homes at 30 Tippett Road in Ward 10 York Centre. The affordable housing plan for this site resulted from a collaboration with Build Toronto and developer Shiplake Properties Limited, a subsidiary of which has entered into an agreement to acquire the site from Build Toronto.

Financial contributions for the 100 affordable homes are proposed from Build Toronto, the Federal and Provincial Governments, and the City. An allocation from the Federal/Provincial Investment in Affordable Housing Program and funding from the City's Development Charges Reserve Fund for Subsidized Housing are recommended.

City Council adopted the Tippett Road Area Regeneration Study in July 2015 and directed the Director, Affordable Housing Office, to work with Build Toronto and the Regeneration Area property owners to deliver affordable rental and ownership homes.

On March 31 and April 1, 2016 City Council allocated federal and provincial funding and City funding and incentives for the first 100 affordable homes on the Build Toronto lands at 36 Tippett Road. A concurrent report, A Program for 50 New Affordable Ownership Homes at 4, 6 and 9 Tippett Road, will provide federal, provincial and City funding for 50 additional affordable ownership homes on private lands in the Tippett Road Regeneration Area. Combined, these three reports provide support for 250 affordable homes.

The Regeneration Area is bounded by Wilson Heights Boulevard, Wilson Avenue, Champlain Boulevard, Highway 401 and Allen Road in Ward 10 – York Centre.

The Executive Committee recommends that:

1. City Council approve allocating up to $800,000.00 from the Development Charges Reserve Fund for Subsidized Housing (XR2116) for up to 32 down-payment assistance loans of $25,000 each to eligible purchasers of housing to be developed on the property currently known as 2 Bicknell Avenue, under the terms of the City's Home Ownership Assistance Program.

2. City Council authorize the Director, Affordable Housing Office, to negotiate, enter into and execute, on behalf of the City, all affordable housing funding agreements, and any security, financing or other documents required with Build Toronto, the affordable housing developer, and any other party deemed necessary to facilitate the funding detailed in the report (June 8, 2016) from the Director, Affordable Housing Office, on terms and conditions satisfactory to the Director, Affordable Housing Office, in consultation with the Deputy City Manager and Chief Financial Officer, and in a form approved by the City Solicitor.

3. City Council approve a change to the terms of the City's Home Ownership Assistance Program so that the down payment assistance loans no longer be forgivable after twenty years, but be repayable on sale of the home.

4. City Council grant authority to the City Solicitor to execute, postpone, confirm the status of, and discharge any City security documents registered as required by normal business practices.

This report recommends funding for up to 32 new affordable ownership homes at 2 Bicknell Avenue in Ward 12 York South-Weston. The affordable housing plan for this site was developed in collaboration with Build Toronto and developers Trillium Housing Non-Profit Corporation and Van Mar Constructors, who have acquired the surplus City site from Build Toronto.

Financial contributions for the 32 affordable homes are proposed from Build Toronto, the Federal and Provincial Governments, the City and the developers. Funding from the federal/provincial Investment in Affordable Housing Program and from the City's Development Charges Reserve Fund for Subsidized Housing is recommended.

City Council on December 9 and 10, 2015 adopted EX10.18 Affordable Housing Open Door Program which detailed land, planning and financial investments and initiatives to enhance the City's ability to deliver affordable housing and achieve its approved housing targets.  It contained actions to better utilize surplus public lands and provide financial contributions for new affordable housing.  Two Bicknell Avenue was included as an upcoming affordable housing opportunity.

Two Bicknell Avenue is northwest of Rogers Road and Keele Street and has been approved for 63 low rise residential units.  The affordable homes will be distributed throughout the development.

This report recommends funding for up to 32 new affordable ownership homes at 2 Bicknell Avenue in Ward 12 York South-Weston. The affordable housing plan for this site was developed in collaboration with Build Toronto and developers Trillium Housing Non-Profit Corporation and Van Mar Constructors, who have acquired the surplus City site from Build Toronto.

Financial contributions for the 32 affordable homes are proposed from Build Toronto, the Federal and Provincial Governments, the City and the developers. Funding from the federal/provincial Investment in Affordable Housing Program and from the City's Development Charges Reserve Fund for Subsidized Housing is recommended.

City Council on December 9 and 10, 2015 adopted EX10.18 Affordable Housing Open Door Program which detailed land, planning and financial investments and initiatives to enhance the City's ability to deliver affordable housing and achieve its approved housing targets. It contained actions to better utilize surplus public lands and provide financial contributions for new affordable housing. Two Bicknell Avenue was included as an upcoming affordable housing opportunity.

Two Bicknell Avenue is northwest of Rogers Road and Keele Street and has been approved for 63 low rise residential units. The affordable homes will be distributed throughout the development.

The Executive Committee recommends that:

1. City Council approve allocation up to $625,000 from the Development Charges Reserve Fund for Subsidized Housing (XR2116) for up to 25 down payment assistance loans of $25,000 each, to eligible purchasers of housing to be developed on the property currently known as 9 Tippett Road, under the terms of the City's Home Ownership Assistance Program.

2. City Council authorize the Director, Affordable Housing Office, to negotiate, enter into and execute, on behalf of the City, all affordable housing funding agreements, and any security, financing or other documents required with Malibu Investments Limited, or a related corporation, and any other party deemed necessary to facilitate the funding detailed in the report (June 8, 2016) from the Director, Affordable Housing Office, on terms and conditions satisfactory to the Director, Affordable Housing Office, in consultation with the Deputy City Manager and Chief Financial Officer, and in a form approved by the City Solicitor.

3. City Council approve a change to the terms of the City's Home Ownership Assistance Program so that the down payment assistance loans no longer be forgivable after twenty years, but be repayable on sale of the home.

4. City Council grant authority to the City Solicitor to execute, postpone, confirm the status of, and discharge any City security documents registered as required by normal business practices.

This report recommends funding for 25 affordable ownership homes at 9 Tippett Road in Ward 10 York Centre. The affordable housing plan for this site was developed in collaboration with the developer Malibu Investments under the policies of the Tippett Road Area Regeneration Study.

Allocations from the federal/provincial Investment in Affordable Housing Program and the City's Development Charges Reserve Fund for Subsidized Housing are recommended.

City Council adopted the Tippett Road Area Regeneration Study in July 2015 and directed the Director, Affordable Housing Office, to work with the Regeneration Area property owners to deliver affordable homes.

On March 31 and April 1, 2016 City Council approved federal and provincial funding and City funding and incentives for the first 100 affordable homes in the Regeneration Area at 36 Tippett Road.  A concurrent report, A Program for 100 New Affordable Rental and Ownership Homes at 30 Tippett Road, will recommend similar funding for a further 100 affordable homes on former City land in the Regeneration Area. Combined, these three reports recommend support for 250 affordable homes.

The Tippett Regeneration Area is bounded by Wilson Heights Boulevard, Wilson Avenue, Champlain Boulevard, Highway 401 and Allen Road.

This report recommends funding for 25 affordable ownership homes at 9 Tippett Road in Ward 10 York Centre. The affordable housing plan for this site was developed in collaboration with the developer Malibu Investments under the policies of the Tippett Road Area Regeneration Study.

Allocations from the federal/provincial Investment in Affordable Housing Program and the City's Development Charges Reserve Fund for Subsidized Housing are recommended.

City Council adopted the Tippett Road Area Regeneration Study in July 2015 and directed the Director, Affordable Housing Office, to work with the Regeneration Area property owners to deliver affordable homes.

On March 31 and April 1, 2016 City Council approved federal and provincial funding and City funding and incentives for the first 100 affordable homes in the Regeneration Area at 36 Tippett Road. A concurrent report, A Program for 100 New Affordable Rental and Ownership Homes at 30 Tippett Road, will recommend similar funding for a further 100 affordable homes on former City land in the Regeneration Area. Combined, these three reports recommend support for 250 affordable homes.

The Tippett Regeneration Area is bounded by Wilson Heights Boulevard, Wilson Avenue, Champlain Boulevard, Highway 401 and Allen Road.

The Executive Committee recommends that:

1. City Council authorize the City to enter into an agreement with Artscape, Build Toronto, the Developer and any other party deemed necessary, to secure the purchase and financing of the Artscape Units at below market value.

2. City Council authorize the City to be a party to the agreements of purchase and sale contemplated to be entered into for the Artscape Units as a contingent transferee, in order to ensure the benefit of the Artscape Units is secured for the intended purposes, in the event Artscape or its assignee is not able to complete the transactions.

3. City Council authorize the City to assign its interests in the Artscape Units to another not for profit housing provider, chosen by the Director, Affordable Housing Office to give effect to the intended purpose of the Artscape Units as affordable housing, or to an arm's length purchaser at fair market value if no agreement can be made with a suitable not for profit, on terms and conditions determined by him and in a form approved by the City solicitor prior to the closing date with the Developer, with the intention that there are no financial consequences to the City having been a party to the agreements of purchase and sale for the Artscape Units.

4. City Council authorize the proceeds of the assignment of an agreement of purchase and sale for a Artscape Unit at fair market value to be paid to the Capital Revolving Reserve Fund for Affordable Housing (XR1058) after payment of all expenses incurred in making the assignment of any of the Artscape Units.

5. City Council approve allocation up to $375,000.00 in financial assistance from the Development Charges Reserve Fund (2009) for Subsidized Housing (XR2116) for up to 15 down payment assistance loans ($25,000 per unit maximum) for delivery by Artscape, under the terms of the City's Home Ownership Assistance Program.

6. City Council approve a change to the terms of the City's Home Ownership Assistance Program so that the down payment assistance loans no longer be forgivable after twenty years, but be repayable on sale of the home.

7. City Council authorize the Director, Affordable Housing Office to negotiate and execute, on behalf of the City, the agreement referred to Recommendation 1 above and the agreements with Artscape to secure the funding referred to in Recommendations 5 and 6 above, as well as any documents, agreements, or security required to give effect to the foregoing on terms and conditions determined by the Director, Affordable Housing Office and in a form approved by the City Solicitor.

8. City Council authorize and direct the City Solicitor to execute the agreements of purchase and sale for the Artscape Units, together with any documents or agreement relating to an assignment or a re-sale transaction that may occur as a result of entering into that agreement, and to amend and to waive any terms and conditions on behalf of the City, on such terms as she considers reasonable.

9. City Council grant authority to the City Solicitor to execute any documents required to register security for the funding referred to in Recommendations 5 and 6 above and to postpone, confirm the status of, and discharge security, as required by normal business practices.

10. City Council waive the restrictions of Section 2.4(a) of Build Toronto's Shareholder Direction solely for this transaction on terms and conditions satisfactory to the City Manager and in a form approved by the City Solicitor, in order to permit Build Toronto to facilitate the acquisition at below market value by Toronto Artscape of 15 affordable housing units at 505 Richmond Street West, Toronto through funds provided by an affiliate of Build Toronto.

This report recommends an innovative affordable ownership housing initiative between Toronto Artscape ("Artscape"), the City of Toronto, Build Toronto and the condominium Developer MOD Developments Downtown Properties Inc. and 505 Richmond Inc. (the "Developer") in Ward 20, Trinity Spadina.  Fifteen affordable ownership homes will be funded to provide housing for lower-income arts workers and their families.  The homes will be incorporated into the condominium development at 505 Richmond Street West, a surplus City of Toronto property transferred to Build Toronto in 2011.

This report seeks authority for the City to enter into an affordable housing agreement with Artscape, Build Toronto, and the Developer whereby 15 homes will be sold at below-market value. Both Build Toronto and the City will provide contributions to make the homes affordable to eligible lower-income households through Artscape's long-term affordable ownership housing program.

Affordable housing program funding is recommended to come from the federal/ provincial Investment in Affordable Housing Program (IAH) and the City's Home Ownership Assistance Program (HOAP), with additional financial contributions from Build Toronto. The Investment in Affordable Housing Program provides loans valued at up to 10 percent of a home's purchase price and the Home Ownership Assistance Program provides loans of $25,000 per home.  To secure the long-term affordability of the units, Artscape will ensure that when a family sells the home, the funding remains with the unit to assist the next eligible Artscape household to purchase the home.

The new building is between Spadina Avenue and Bathurst Street on the south side of Richmond Street West.  The Artscape homes will be clustered together within the building to foster community.

This report recommends an innovative affordable ownership housing initiative between Toronto Artscape ("Artscape"), the City of Toronto, Build Toronto and the condominium Developer MOD Developments Downtown Properties Inc. and 505 Richmond Inc. (the "Developer") in Ward 20, Trinity Spadina. Fifteen affordable ownership homes will be funded to provide housing for lower-income arts workers and their families. The homes will be incorporated into the condominium development at 505 Richmond Street West, a surplus City of Toronto property transferred to Build Toronto in 2011.

This report seeks authority for the City to enter into an affordable housing agreement with Artscape, Build Toronto, and the Developer whereby 15 homes will be sold at below-market value. Both Build Toronto and the City will provide contributions to make the homes affordable to eligible lower-income households through Artscape's long-term affordable ownership housing program.

Affordable housing program funding is recommended to come from the federal/ provincial Investment in Affordable Housing Program (IAH) and the City's Home Ownership Assistance Program (HOAP), with additional financial contributions from Build Toronto. The IAH provides loans valued at up to 10 percent of a home's purchase price and the HOAP provides loans of $25,000 per home. To secure the long-term affordability of the units, Artscape will ensure that when a family sells the home, the funding remains with the unit to assist the next eligible Artscape household to purchase the home.

The new building is between Spadina Avenue and Bathurst Street on the south side of Richmond Street West. The Artscape homes will be clustered together within the building to foster community.

The Executive Committee recommends that:

1. City Council exempt the 20 new affordable housing units to be developed at 3087 Danforth Avenue from taxation for municipal and school purposes for the term of the municipal capital facility agreement.

2. City Council grant authority to the Director, Affordable Housing Office, to negotiate, enter into and execute the municipal capital facility agreements with New Frontiers Aboriginal Residential Corporation or its successor corporation, to ensure the creation of affordable rental units at or below 80 percent of average market rates for a minimum of 20 years and 100 percent thereafter, and any security, financing or other documents required, as well as any amendments thereto on terms and conditions acceptable to the Director, Affordable Housing Office and in a form approved by the City Solicitor.

3. City Council grant authority to the City Solicitor to execute, postpone, confirm the status of and discharge any City security documents registered as required by normal business practices.

4. City Council grant authority to cancel or refund any taxes paid from the by-law exempting the property from taxation.

5. City Council authorize and direct City officials to take the necessary action to give effect thereto.

Consistent with City policy, this report recommends that City Council exempt 20 affordable rental homes at 3087 Danforth Avenue in Ward 35 – Scarborough Southwest, currently owned and operated by New Frontiers Aboriginal Residential Corporation (NFARC) from property taxes for a period of 25 years. The exemption will allow the new housing project to offer more affordable rents to lower-income aboriginal households.

Consistent with City policy, this report recommends that City Council exempt 20 affordable rental homes at 3087 Danforth Avenue in Ward 35 – Scarborough Southwest, currently owned and operated by New Frontiers Aboriginal Residential Corporation (NFARC) from property taxes for a period of 25 years.  The exemption will allow the new housing project to offer more affordable rents to lower-income aboriginal households.

The Executive Committee recommends that:

1.  City Council exempt the 22 new affordable housing units to be developed at 3738 St. Clair Avenue East from taxation for municipal and school purposes for the term of the municipal capital facility agreement.

2.  City Council grant authority to the Director, Affordable Housing Office, to negotiate, enter into and execute the municipal capital facility agreements with New Frontiers Aboriginal Residential Corporation or its successor corporation, to ensure the creation of affordable rental units at or below 80 percent of average market rates for a minimum of 20 years and 100 percent thereafter, and any security, financing or other documents required, as well as any amendments thereto on terms and conditions acceptable to the Director, Affordable Housing Office and in a form approved by the City Solicitor.

3.  City Council grant authority to the City Solicitor to execute, postpone, confirm the status of and discharge any City security documents registered as required by normal business practices.

4.  City Council grant authority to cancel or refund any taxes paid from the by-law exempting the property from taxation.

5.  City Council authorize and direct City officials to take the necessary action to give effect thereto.

Consistent with City policy, this report recommends that City Council exempt 22 affordable rental homes at 3738 St. Clair Avenue East in Ward 36 – Scarborough Southwest, currently owned and operated by New Frontiers Aboriginal Residential Corporation (NFARC) from property taxes for a period of 25 years.  The exemption will allow the new housing project to offer more affordable rents to lower-income aboriginal households.

Consistent with City policy, this report recommends that City Council exempt 22 affordable rental homes at 3738 St. Clair Avenue East in Ward 36 – Scarborough Southwest, currently owned and operated by New Frontiers Aboriginal Residential Corporation (NFARC) from property taxes for a period of 25 years. The exemption will allow the new housing project to offer more affordable rents to lower-income aboriginal households.

The Executive Committee recommends that:

1. City Council approve the budget adjustments detailed in Appendix E to the report (June 6, 2016) from the Deputy City Manager and Chief Financial Officer to amend the 2015 Approved Operating Budget between Programs that have no impact to the 2015 Approved Net Operating Budget.

The purpose of this report is to provide Council with the City of Toronto's Operating Variance for the year ended December 31, 2015 and the disposition of the 2015 year-end operating surplus.  This report also requests Council's approval for amendments to the 2015 Approved Operating Budget between Programs to better align and reflect the loss of the Toronto Pooling Compensation grant that has no impact to the 2015 Approved Net Operating Budget. 

As noted in Table 1 below, the preliminary 2015 year-end operating surplus for Tax Supported Operations resulted in a net favourable variance of $130.928 million which is available for distribution after Council directions and legislative requirements are met.  This surplus represented 1.3% of the gross Tax Supported budget. 

Consistent with City Council approved Surplus Management Policy, at least 75 percent or ­­­­­­­­$98.196 million will be allocated to the Capital Financing Reserve and $32.732 million will be allocated to underfunded liabilities and/or reserve funds for replenishment.

The 2015 surplus was driven largely by:

-  Lower than planned financial employment benefits for OW clients mainly due to functionality issues related to the Social Assistance Management System that processed client applications for Toronto Employment and Social Services ($12.820 million); under-spending in Non-Program Expenditures particularly in the Heritage Tax Rebate program, Parking Tag Enforcement and Operations, and various Other Corporate Expenditure accounts ($12.597 million); combined with under-expenditures in various departmental non-labour expenses including utilities, leasing and fuel costs for TTC – Conventional Services ($10.119 million). 

- Higher than budgeted net revenue from the Municipal Land Transfer Tax ($92.122 million), Supplementary Taxes ($15.003 million) as a result of supplementary/omits rolls being higher than originally forecast, a year-end adjustment to recognize retroactive lease payments since 2011 based on a favourable ruling in regards to 2 Bloor Street West in Facilities, Real Estate, Environment & Energy ($14.942 million), stronger than forecast permit net revenue largely from high rise condominium applications for Toronto Building ($11.700 million), as well as one-time unbudgeted revenues and net Pan Am Games recoveries for Toronto Police Service ($8.363 million).

- The favourable expenditure revenue variances, as noted above, were partially offset by under-achieved in Payment in Lieu of Taxes as a result of higher than anticipated appeals and other adjustments ($7.643 million); a delay in approval of the Toronto Hydro dividend ($11.250 million); reduced ticket issuance by Parking Tag Enforcement & Operations reflecting higher than anticipated success of traffic initiatives and the Pan Am Games ($10.495 million); and under-achieved utility cut repair revenues and lower than expected permit parking fees for Transportation Services ($9.522 million). 

Rate Supported Programs reported a year-end net favourable variance of $48.863 million. Table 2 below summarizes the net variances for Rate Supported Programs:

The year-end favourable net variance of $48.863 million was driven by the following:

- Solid Waste Management Services reported a favourable net variance of $8.222 million at year-end, primarily due to lower processing costs resulting from lower tonnages of recyclable materials; salaries and benefits resulting from vacancies and WSIB costs of $5.449 million; deferred advertising campaigns; and lower than planned debt service costs due to delayed issuance of debentures.  These favourable variances were partially offset by under-achieved revenues due to lower than expected single and multi-resident volumes; adjusted stewardship funding for lower tonnages; lower tonnes of Green Lane waste; and lower prices for sales of recyclables.

- Toronto Parking Authority experienced higher than expected net revenue of $3.923 million or 7.5% at year-end driven largely by higher off-street parking revenues in the downtown garages and surface carparks as a result of higher than anticipated customer volume.   

- Toronto Water reported a favourable net variance of $36.718 million as at December 31, 2015, mainly due to underspending in salaries and benefits in the amount of $11.613 million as a result of vacancies combined with lower than anticipated demand for chemicals, electricity, professional and technical services, as well as underspending in the transfer costs of biosolids as a result of continued beneficial use for sludge.  In addition, revenues exceeded budget due to higher than anticipated volume of water sold, increase in new watermain and sewer service connections, and industrial waste agreements. 

Table 3 below summarizes the staff vacancy rate for the twelve months ended December 31, 2015.

 Table 3

Summary of 2015 Approved Complement at Year-End 

(Includes Capital and Operating Positions)

* Vacancy % minus Budgeted Gapping % or 0% whichever is higher.

For the year-end, the City recorded a vacancy rate of 2.2% after budgeted gapping for an approved complement of 54,304.9 operating and capital positions.  A more detailed analysis is provided in the Approved Complement Section of this report. 

The purpose of this report is to provide Council with the City of Toronto's Operating Variance for the year ended December 31, 2015 and the disposition of the 2015 year-end operating surplus. This report also requests Council's approval for amendments to the 2015 Approved Operating Budget between Programs to better align and reflect the loss of the Toronto Pooling Compensation grant that has no impact to the 2015 Approved Net Operating Budget.

As noted in Table 1 below, the preliminary 2015 year-end operating surplus for Tax Supported Operations resulted in a net favourable variance of $130.928 million which is available for distribution after Council directions and legislative requirements are met. This surplus represented 1.3 percent of the gross Tax Supported budget.

Consistent with City Council approved Surplus Management Policy, at least 75 percent or ­­­­­­­­$98.196 million will be allocated to the Capital Financing Reserve and $32.732 million will be allocated to underfunded liabilities and/or reserve funds for replenishment.

The 2015 surplus was driven largely by:

- Lower than planned financial employment benefits for OW clients mainly due to functionality issues related to the Social Assistance Management System that processed client applications for Toronto Employment and Social Services ($12.820 million); under-spending in Non-Program Expenditures particularly in the Heritage Tax Rebate program, Parking Tag Enforcement and Operations, and various Other Corporate Expenditure accounts ($12.597 million); combined with under-expenditures in various departmental non-labour expenses including utilities, leasing and fuel costs for TTC – Conventional Services ($10.119 million).

- Higher than budgeted net revenue from the Municipal Land Transfer Tax ($92.122 million), Supplementary Taxes ($15.003 million) as a result of supplementary/omits rolls being higher than originally forecast, a year-end adjustment to recognize retroactive lease payments since 2011 based on a favourable ruling in regards to 2 Bloor Street West in Facilities, Real Estate, Environment & Energy ($14.942 million), stronger than forecast permit net revenue largely from high rise condominium applications for Toronto Building ($11.700 million), as well as one-time unbudgeted revenues and net Pan Am Games recoveries for Toronto Police Service ($8.363 million).

- The favourable expenditure revenue variances, as noted above, were partially offset by under-achieved in Payment in Lieu of Taxes as a result of higher than anticipated appeals and other adjustments ($7.643 million); a delay in approval of the Toronto Hydro dividend ($11.250 million); reduced ticket issuance by Parking Tag Enforcement & Operations reflecting higher than anticipated success of traffic initiatives and the Pan Am Games ($10.495 million); and under-achieved utility cut repair revenues and lower than expected permit parking fees for Transportation Services ($9.522 million).

Rate Supported Programs reported a year-end net favourable variance of $48.863 million. Table 2 below summarizes the net variances for Rate Supported Programs:

The year-end favourable net variance of $48.863 million was driven by the following:

- Solid Waste Management Services reported a favourable net variance of $8.222 million at year-end, primarily due to lower processing costs resulting from lower tonnages of recyclable materials; salaries and benefits resulting from vacancies and WSIB costs of $5.449 million; deferred advertising campaigns; and lower than planned debt service costs due to delayed issuance of debentures. These favourable variances were partially offset by under-achieved revenues due to lower than expected single and multi-resident volumes; adjusted stewardship funding for lower tonnages; lower tonnes of Green Lane waste; and lower prices for sales of recyclables.

- Toronto Parking Authority experienced higher than expected net revenue of $3.923 million or 7.5 percent at year-end driven largely by higher off-street parking revenues in the downtown garages and surface carparks as a result of higher than anticipated customer volume.

- Toronto Water reported a favourable net variance of $36.718 million as at December 31, 2015, mainly due to underspending in salaries and benefits in the amount of $11.613 million as a result of vacancies combined with lower than anticipated demand for chemicals, electricity, professional and technical services, as well as underspending in the transfer costs of biosolids as a result of continued beneficial use for sludge. In addition, revenues exceeded budget due to higher than anticipated volume of water sold, increase in new watermain and sewer service connections, and industrial waste agreements.

Table 3 below summarizes the staff vacancy rate for the twelve months ended December 31, 2015.

Table 3

Summary of 2015 Approved Complement at Year-End

(Includes Capital and Operating Positions)

* Vacancy percent minus Budgeted Gapping percent or 0 percent whichever is higher.

For the year-end, the City recorded a vacancy rate of 2.2 percent after budgeted gapping for an approved complement of 54,304.9 operating and capital positions. A more detailed analysis is provided in the Approved Complement Section of this report.

The Executive Committee recommends that:

1.  City Council receive the report and attached appendices (June 6, 2016) from the Deputy City Manager and Chief Financial Officer for information.

The purpose of this report is to provide Council with the City of Toronto Capital Variance for the year-ended December 31, 2015. 

Capital expenditures for the twelve months ended December 31, 2015 totalled $2.868 billion or 68.3 percent of the 2015 Approved Capital Budget of $4.199 billion (see Table 1).  This spending pattern is consistent with prior years. 

For the year- ended December 31, 2015, Tax Supported Programs and Agencies reported capital expenditures of $2.189 billion representing 65.8 percent of their collective 2015 Approved Capital Budget of $3.328 billion. Rate Supported Programs reported capital expenditures of $679.584 million, representing 78.1 percent of their collective 2015 Approved Capital Budget of $870.628 million.

Table 1

Summary of Capital Spending

The rate of spending in 2015 was driven largely by expropriation process delays for the acquisition of various sites, site conditions, longer than planned timelines to obtain necessary approvals or required permits; design issues and difficulty in securing necessary resources for project delivery. The detailed explanations of project delays by Program/Agency are provided in Appendix 3 attached to the report.

Chart 1 below shows historical spending rate over the last 6 years. There has been a marked increase and improvement in capital spending over the last 2 years reaching all time high of $2.868 billion in 2015.

Chart 1

2010 – 2015 Capital Budget Spend Rate

(See Chart 1 titled Capital Budget Spend Rate

in the Summary Section of the report dated June 6, 2016

from the Deputy City Manager

and Chief Financial Officer) 

The purpose of this report is to provide Council with the City of Toronto Capital Variance for the year-ended December 31, 2015.

Capital expenditures for the twelve months ended December 31, 2015 totalled $2.868 billion or 68.3 percent of the 2015 Approved Capital Budget of $4.199 billion (see Table 1). This spending pattern is consistent with prior years.

For the year- ended December 31, 2015, Tax Supported Programs and Agencies reported capital expenditures of $2.189 billion representing 65.8 percent of their collective 2015 Approved Capital Budget of $3.328 billion. Rate Supported Programs reported capital expenditures of $679.584 million, representing 78.1 percent of their collective 2015 Approved Capital Budget of $870.628 million.

Table 1

Summary of Capital Spending

The rate of spending in 2015 was driven largely by expropriation process delays for the acquisition of various sites, site conditions, longer than planned timelines to obtain necessary approvals or required permits; design issues and difficulty in securing necessary resources for project delivery. The detailed explanations of project delays by Program/Agency are provided in Appendix 3 attached to the report.

Chart 1 below shows historical spending rate over the last 6 years. There has been a marked increase and improvement in capital spending over the last 2 years reaching all time high of $2.868 billion in 2015.

Chart 1

2010 – 2015 Capital Budget Spend Rate

(See Chart 1 titled Capital Budget Spend Ratein the Summary Section of the report dated June 6, 2016

from the Deputy City Manager and Chief Financial Officer)

The Executive Committee recommends that:

1. City Council approve the 2017 Budget Process and Schedule which is designed to develop, review and adopt 2017 Rate Supported Operating Budget and 2017 to 2026 Capital Budget and Plan by December 14, 2016 and the 2017 Tax Supported Operating Budget and 2017 to 2026 Capital Budget and Plan by February 16, 2017 as set out in Appendix 1 to the report (June 17, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer.

2. City Council direct that all Agencies submit their respective final Board-approved 2017 Operating Budget and 2017 – 2026 Capital Budget and Plan requests no later than October 1, 2016.

3. City Council adopt an across the board budget reduction target of -2.6 percent net below the 2016 Approved Net Operating Budgets for all City Programs, Agencies, Toronto Community Housing Corporation, and Accountability Offices; and that strategies including but not limited to the following strategies be used to achieve the -2.6 percent target:

a. fund any new or enhanced services from within existing budgets, and review for impact on staff time and planned service delivery any new or enhanced services with a "net zero" funding impact;

b. continue to control expenditures through cost saving measures;

c. explore all services for efficiency savings including opportunities from business process reengineering, streamlining, transformation and innovation to service delivery including from:

i. service delivery rationalization and restructuring; and

ii. opportunities for alternative service delivery, including contracting out;

d. review service levels and outcomes for relevance, value and impact, focussing on non-public facing services first;

e. maximize user fee revenue by reviewing full cost-recovery where applicable, review existing fines and permit fees and identify new fines and other user fees where appropriate;

f. provide a thorough justification for any new Full-time Equivalents (FTEs); and,

g. avoid "offloading" expenses to other City Programs and Agencies.

4.  City Council direct that City Programs and Agencies submit their 2017 - 2026 Capital Budget and Plans requiring that:

a. Capital Plan submissions adhere to the debt levels approved by Council for the 2017 - 2025 Capital Plan as part of the 2016 Budget process, and projects be added in the new tenth year, 2026, that can be accommodated within current affordability targets;

b. annual cashflow funding estimates be examined to more realistically match cashflow spending to project activities and timing, especially in the first 5 years of the Capital Plan's timeframe; and

c. unfunded capital project estimates and timing be refined and submitted for prioritization.

5. City Council direct that the operating and capital guidelines detailed in Recommendations 3 and 4 above be applied to the Accountability Offices for the 2017 Budget process.

6.  City Council direct the City Manager to provide the following information as part of the 2017 tax suported budget:

a. detailed information about anticipated gapping of front line staff; and

b. detailed information on proposed changes to cost recovery or cost shared services.

7.  City Council direct the City Manager to prepare the 2017 tax-supported net operating budget based on estimated revenue resulting from a residential property tax increase at or below the rate of inflation.

8.  City Council direct the City Manager and the Deputy City Manager and Chief Financial Officer, as part of the 2017 budget process, to accelerate the use of digital solutions, measurements and analytics.

The purpose of this report is to establish the 2017 Budget process and schedule to review and approve the Tax and Rate Supported 2017 Operating Budget and the 2017 to 2026 Capital Budget and Plan for the City of Toronto.

The recommended 2017 Budget Process and Schedule is designed to ensure that the Rate Supported Operating Budgets and 10-Year Capital Plans are approved by December 14, 2016 and the Tax Supported Operating Budget and 10-Year Capital Plan are approved by February 16, 2017. To ensure adequate time to review agency budget submissions, it is recommended that City Council direct all Agencies to submit their final Board-approved budget submissions by October 1, 2016.

This report also lays out the 2017 operating revenue and expenditure projections which have been, in part, determined by decisions approved in the 2016 Budget process as well as anticipated costs and revenues associated with maintaining 2016 approved service levels. These projected pressures are presented to assist Budget Committee and Council in establishing recommended budget targets and directions for City Programs, Agencies and Accountability Offices in order to address significant budget pressures forecasted for 2017. These estimates are projected based on current information and are not final. These estimates will change with the receipt of actual budget submissions.

A net tax supported revenue increase of $66 million is projected for 2017. This estimate is driven by an assumed 2 percent residential tax rate increase of $52 million, assessment growth of $40 million or 1 percent and only a marginal increase of $20 million in Municipal Land Transfer Taxes that will be reduced to account for the reversal of $38 million in approved one-time 2016 revenues and other net revenue reductions of $8 million.

Operating expenses are forecasted to increase by $582 million with Capital Financing and other Non-Program expenses ($166 million), Toronto Transit Commission ($178 million), Toronto Community Housing Corporatin ($96 million) and Toronto Police Services ($19 million) projected as the key service cost drivers. With revenues fixed at $66 million, budget reduction strategies are required to offset net base pressures of $516 million in order to balance the 2017 Operating Budget. These strategies would simply address current service costs and exclude any funding for new and enhanced service investments.

Given the limited funding for City services, there is no additional financial capacity to fund any new capital works in 2017. As a result, City Programs, Agencies and Accountability Officers must submit 2017 – 2026 Capital Budget and Plans on a status quo basis. This requires capital plan requests to adhere to the 2017 – 2025 Capital Plan’s annual debt funding approved by Council as part of the 2016 Budget process, and projects be added in the new tenth year, 2026, that can be accommodated within current debt targets as provided by the Deputy City Manager and Chief Financial Officer.

Staff are requested to continue to refine their estimates for the unfunded capital projects valued at $29 billion identified in 2016 and to submit these to establish priorities. Staff have begun developing a funding plan for priority capital projects, which will include a review of debt capacity, the application of new and existing revenue options, as well as the eligibility of Federal and Provincial funding programs over the next 12 to 24 months. The ensuing list of new unfunded capital projects will be considered in concert with the City Manager and Chief Financial Officer's report on a multi-year revenue strategy which will then form the basis for the development of a funding plan for priority capital projects as part of the City's Long Term Financial Plan. The funding plan would then be submitted to Council for its consideration and approval.

Revenue tools currently under study may not be available for the 2017 Budget process and should not be considered as providing any significant relief for 2017. Should any become available for use, they must be considered as a bridging strategy to sustainable operating budgets only. New revenue sources must be considered for the sizable unfunded capital needs that have been identified as critical to maintaining reliable City service delivery and meeting city building and other strategic objectives.

In prior years, the City Manager and Chief Financial Officer set targets for all City Programs and Agencies in advance of budget preparation. These targets have been met with varying degrees of compliance and impact. Beginning with the 2017 Budget process, Budget Committee is requested to recommend budget targets for all City Programs, Agencies and Accountability Offices for approval by City Council.

In addressing 2017 budgetary challenges, it will be necessary to ensure consistency between decisions to be taken in 2017 with the City's emerging longer-term priorities.

The purpose of this report is to establish the 2017 Budget process and schedule to review and approve the Tax and Rate Supported 2017 Operating Budget and the 2017 to 2026 Capital Budget and Plan for the City of Toronto.

The recommended 2017 Budget Process and Schedule is designed to ensure that the Rate Supported Operating Budgets and 10-Year Capital Plans are approved by December 14, 2016 and the Tax Supported Operating Budget and 10-Year Capital Plan are approved by February 16, 2017. To ensure adequate time to review agency budget submissions, it is recommended that City Council direct all Agencies to submit their final Board-approved budget submissions by October 1, 2016.

This report also lays out the 2017 operating revenue and expenditure projections which have been, in part, determined by decisions approved in the 2016 Budget process as well as anticipated costs and revenues associated with maintaining 2016 approved service levels. These projected pressures are presented to assist Budget Committee and Council in establishing recommended budget targets and directions for City Programs, Agencies and Accountability Offices in order to address significant budget pressures forecasted for 2017. These estimates are projected based on current information and are not final. These estimates will change with the receipt of actual budget submissions.

A net tax supported revenue increase of $66 million is projected for 2017. This estimate is driven by an assumed 2 percent residential tax rate increase of $52 million, assessment growth of $40 million or 1 percent and only a marginal increase of $20 million in Municipal Land Transfer Taxes that will be reduced to account for the reversal of $38 million in approved one-time 2016 revenues and other net revenue reductions of $8 million.

Operating expenses are forecasted to increase by $582 million with Capital Financing and other Non-Program expenses ($166 million), Toronto Transit Commission ($178 million), Toronto Community Housing Corporatin ($96 million) and Toronto Police Services ($19 million) projected as the key service cost drivers. With revenues fixed at $66 million, budget reduction strategies are required to offset net base pressures of $516 million in order to balance the 2017 Operating Budget. These strategies would simply address current service costs and exclude any funding for new and enhanced service investments.

Given the limited funding for City services, there is no additional financial capacity to fund any new capital works in 2017. As a result, City Programs, Agencies and Accountability Officers must submit 2017 – 2026 Capital Budget and Plans on a status quo basis. This requires capital plan requests to adhere to the 2017 – 2025 Capital Plan’s annual debt funding approved by Council as part of the 2016 Budget process, and projects be added in the new tenth year, 2026, that can be accommodated within current debt targets as provided by the Deputy City Manager and Chief Financial Officer.

Staff are requested to continue to refine their estimates for the unfunded capital projects valued at $29 billion identified in 2016 and to submit these to establish priorities. Staff have begun developing a funding plan for priority capital projects, which will include a review of debt capacity, the application of new and existing revenue options, as well as the eligibility of Federal and Provincial funding programs over the next 12 to 24 months. The ensuing list of new unfunded capital projects will be considered in concert with the City Manager and Chief Financial Officer's report on a multi-year revenue strategy which will then form the basis for the development of a funding plan for priority capital projects as part of the City's Long Term Financial Plan. The funding plan would then be submitted to Council for its consideration and approval.

Revenue tools currently under study may not be available for the 2017 Budget process and should not be considered as providing any significant relief for 2017. Should any become available for use, they must be considered as a bridging strategy to sustainable operating budgets only. New revenue sources must be considered for the sizable unfunded capital needs that have been identified as critical to maintaining reliable City service delivery and meeting city building and other strategic objectives.

In prior years, the City Manager and Chief Financial Officer set targets for all City Programs and Agencies in advance of budget preparation. These targets have been met with varying degrees of compliance and impact. Beginning with the 2017 Budget process, Budget Committee is requested to recommend budget targets for all City Programs, Agencies and Accountability Offices for approval by City Council.

In addressing 2017 budgetary challenges, it will be necessary to ensure consistency between decisions to be taken in 2017 with the City's emerging longer-term priorities.

The Executive Committee recommends that:

1. City Council direct that the 2014 operating surpluses totalling $3,278 from three Arenas (Larry Grossman Forest Hill Memorial, Ted Reeve and North Toronto) be paid to the City of Toronto and be used to partially fund the cumulative operating deficit of $186,612 for five Arenas (George Bell, William H. Bolton, Leaside Memorial Community Gardens, McCormick, and Moss Park), resulting in an operating net deficit of $183,334 to be funded by the City, as detailed in Appendix A, column (d), of the report (June 8, 2016) from the Deputy City Manager and Chief Financial Officer.

2. City Council direct that a funding provision for the 2014 net deficit of $174,384 be made through the 2015 Final Year-End Operating Variance Report, as calculated in Appendix A to the report (June 8, 2016) from the Deputy City Manager and Chief Financial Officer.

3. City Council direct that the Leaside Memorial Community Gardens Arena's 2014 operating deficit of $83,851 be added to the City loan balance outstanding related to the "Leaside Arena 2nd Pad Expansion Project".

This report recommends settlements with the eight Arena Boards of Management (Arenas) of their 2014 operating surpluses and deficits based on the audited financial statements for the year-ended December 31, 2014, with operating surpluses payable to the City and operating deficits funded by the City upon Council's approval.

This report recommends settlements with the eight Arena Boards of Management (Arenas) of their 2014 operating surpluses and deficits based on the audited financial statements for the year-ended December 31, 2014, with operating surpluses payable to the City and operating deficits funded by the City upon Council's approval.

The Executive Committee recommends that:

1. City Council direct the General Manager, Economic Development and Culture to include capital projects at 16 Ryerson Avenue to reduce the State of Good Repair backlog identified in the Building Condition Audit in 2014 and comply with the Accessibility for Ontarians with Disabilities Act in its 2017 - 2026 Capital Budget and Plan submission for consideration.

City Council, in February 2016, directed the General Manager, Economic Development and Culture and the Chief Financial Officer to review the agreement with Theatre Passe Muraille (TPM), and the funding of the 16 Ryerson Avenue Capital Maintenance Reserve Fund (XR3213) to develop a realistic plan for required contributions and capital maintenance, and report back in June 2016, prior to the 2017 Budget process.

Theatre Passe Muraille is Canada's oldest alternative theatre devoted to the development and production of original Canadian work and is the sub-tenant at 16 Ryerson, a City of Toronto owned building.  In December 2007, the City acquired the building from Theatre Passe Muraille to assist them in managing a financial crisis while continuing to develop and produce Canadian theatre in the building.

In January 2008, the City entered into a below market rent (BMR) lease with Toronto Artscape Inc. to manage the building as a City-owned performing arts centre, operated by Theatre Passe Muraille.  The current lease is for a 10-year term with two five-year renewal options.  The lease established that $200,000 from the proceeds of the sale of the building was to be used to create a Reserve Fund, held by the City as security for any future capital costs.  A condition of the lease requires the tenant to contribute a minimum of $20,000 annually to the Reserve Fund.  Such funds, over the $200,000 principal, are to be applied to the capital costs of the building, through the Economic Development and Culture Division's Capital Budget.

In 2014, an updated Building Condition Audit for 16 Ryerson Avenue identified over $600,000 in State of Good Repair (SOGR) backlog, (construction estimates only), excluding architects' fees, accessibility upgrades, and a new required electrical service.

Economic Development and Culture staff recently completed a financial review of Theatre Passe Muraille.  The not-for-profit theatre relies heavily on grants and donations just to maintain programming and operations. Theatre Passe Muraille does not have the capacity and resources to maintain the building in a state of good repair, beyond the contribution it is already making to the reserve.

The Executive Committee recommends that:

1. City Council authorize the General Manager, Parks, Forestry and Recreation to sign a transfer payment agreement with the Ministry of Tourism, Culture and Sport for the Ontario Sport and Recreation Community Fund grant and receive funds up to $0.251 million in provincial contribution over 2 years.

2. City Council increase the Council approved 2016 Operating Budget for Parks, Forestry and Recreation by $0.118 million, fully funded by the Ontario Sport and Recreation Community Fund grant for a net zero impact, and include the remaining grant funding of $0.132 million in the 2017 Operating Budget Submission.

Parks, Forestry and Recreation has been awarded a two-year grant through the Ministry of Tourism, Culture and Sports, Ontario Sport and Recreation Community Fund for the amount of $0.251 million.

This report seeks authority for staff to accept the grant funding which in combination with  existing resources will be used to expand and further implement consistent quality standards into all children's programming offered by the Community Recreation Branch utilizing the HIGH FIVE® nationally recognized quality assurance program.

The Executive Committee recommends that:

1.  City Council authorize the reallocation of funds within Toronto Water's approved 2016 Capital Budget and 2017-2025 Capital Plan in the amount of $28.204 million, for acceleration and deferral of projects, as presented in Schedule A (Part A and B) to the report (June 7, 2016) from the General Manager, Toronto Water, with a zero Budget impact.

 2.  City Council authorize the reallocation of funds in Toronto Water's approved 2016 Capital Budget and 2017-2025 Capital Plan in the amount of $15.8 million from projects that have been completed or delayed to those requiring additional funding in the same amount as presented in Schedule A (Part C) to the report (June 7, 2016) from the General Manager, Toronto Water with a zero Budget impact.

This report requests City Council’s authority to amend Toronto Water’s Approved 2016 Capital Budget and 2017-2025 Capital Plan by adjusting project costs and cash flows contained within the Budget and Plan, respectively, to align the 2016 Capital Budget with changes made to the 2015 Capital Budget at year end.  Additional reallocations to project cashflows and project costs are requested where recent project estimates exceed the current approved cashflow.  These reallocations will allow Toronto Water to continue to deliver projects within its capital plan.  The adjustments will have a zero dollar impact on the 2016 Capital Budget and 2017-2025 Capital Plan and will align the 2016 Capital Budget to Toronto Water's capital project delivery schedule and program requirements.

The Executive Committee recommends that:

1. City Council authorize the reallocation of funds within Toronto Water's approved 2016 Capital Budget and 2017-2025 Capital Plan in the amount of $28.204 million, for acceleration and deferral of projects, as presented in Schedule A (Part A and B) to the report (June 7, 2016) from the General Manager, Toronto Water, with a zero Budget impact.

2. City Council authorize the reallocation of funds in Toronto Water's approved 2016 Capital Budget and 2017-2025 Capital Plan in the amount of $15.8 million from projects that have been completed or delayed to those requiring additional funding in the same amount as presented in Schedule A (Part C) to the report (June 7, 2016) from the General Manager, Toronto Water with a zero Budget impact.

This report requests City Council's authority to amend Toronto Water's Approved 2016 Capital Budget and 2017-2025 Capital Plan by adjusting project costs and cash flows contained within the Budget and Plan, respectively, to align the 2016 Capital Budget with changes made to the 2015 Capital Budget at year end. Additional reallocations to project cashflows and project costs are requested where recent project estimates exceed the current approved cashflow. These reallocations will allow Toronto Water to continue to deliver projects within its capital plan. The adjustments will have a zero dollar impact on the 2016 Capital Budget and 2017-2025 Capital Plan and will align the 2016 Capital Budget to Toronto Water's capital project delivery schedule and program requirements.

The Executive Committee recommends that:

1. City Council amend the Toronto Police Service 2016 Capital Budget by replacing $1.000 million of approved debt funding with $1.000 million of eligible Development Charge funding, for the 2016 Peer to Peer Additional Cost sub-project, in order to reduce 2016 debt from $22.586 million to $21.586 million, with no change to the Toronto Police Service Capital cash flow of $39.320 million approved for 2016.

The purpose of this report is to provide the Budget Committee with the 2016-2025 revised capital program request for the Toronto Police Service (the "Service").

The purpose of this report is to provide the Budget Committee with the 2016-2025 revised capital program request for the Toronto Police Service.

The Executive Committee recommends that:

1.  City Council approve the following amendments to the Muzik Clubs Lease and any other terms that may be required by the Chief Executive Officer and City Solicitor, on the condition that Muzik Clubs also agrees to amend the Muzik Clubs Lease to allow the removal of the Garden of the Greek Gods (referred to in the Lease as the "Existing Statuary") from the Leased Premises at the Board's expense:

a.  amend sections 5.1 and 5.2 of the Muzik Clubs Lease to allow Muzik Clubs to host banquets provided that if Muzik Clubs, in any one year, contracts to hold more than thirty (30) banquets, Muzik Clubs will provide notice to the Liberty Grand Entertainment Group ("Liberty"), and Liberty will have the right to cater such banquets, in accordance with Liberty’s price listing so that the amended sections of the Muzik Clubs Lease will be substantiality as provided in Appendix "A" of the report (June 14, 2016) from the Chief Executive Officer, Exhibition Place.

2.  City Council authorize the Board of Governors to:

a.  confirm in writing to Muzik Clubs Inc. that, in respect of trade and consumer shows, although the prohibition in the Muzik Clubs Lease will remain, the current practice of the Landlord allowing Muzik Clubs to host occasional trade and consumer shows with the prior consent of the Landlord in appropriate circumstances and in the Landlord's sole discretion will continue, provided that as a condition for this ongoing cooperation, Muzik Clubs Inc. must refrain from marketing itself as a venue for trade and consumer shows, or any other uses not permitted by the terms of the Muzik Clubs Lease; and

b.  establish a procedure whereby any consent will be submitted to the Business Development Committee and then to the Board of Governors for approval, provided however that in the case of urgent matters, the Chief Executive Officer of Exhibition Place will have the authority to give or withhold consent.

3.  City Council direct that Confidential Attachment 1 of the report (June 14, 2016) from the Chief Executive Officer, Exhibition Place remain confidential as it contains advice and information that is subject to solicitor-client privilege.

This report provides information in relation to the lease agreement between the Board of Governors of Exhibition Place and Hypnotic Clubs Inc. (successor to Muzik Clubs Inc.) (the "Muzik Clubs Lease") and other leases for the grounds. Specifically, it recommends amendments to the "Use" provisions in the Muzik Clubs Lease.  Leases with terms that are longer than four (4) years are approved by both the Board of Governors and City Council and the Muzik Clubs Lease which is 20 years falls into this category.  Revisions to the "Use" clauses in the Muzik Clubs Lease would be considered an amendment to a substantive term that would have been part of the terms in the Letter of Intent for the Muzik Clubs Lease approved by City Council.

The Executive Committee recommends that:

1.  City Council authorize the City of Toronto to sign the Amending Agreement to the Community Policing Partnership (CPP) Agreement with the Province and the Toronto Police Services Board, subject to approval as to form by the City Solicitor.

The purpose of this report is to request the Executive Committee to submit a recommendation to City Council to authorize the City of Toronto to enter into an Amending Agreement to the Community Policing Partnership (CPP) Program Agreement between the Province of Ontario (Province), the City of Toronto, and the Toronto Police Services Board.  This Amending Agreement was received on April 18, 2016 and amends the current Agreement, which expired on March 31, 2016, extending the term of the Agreement for a period of one year - April 1, 2016 to March 31, 2017.

Under the CPP Program, the Toronto Police Service (Service) receives grant funding of up to $7.53 million annually to cover a portion ($30,000 per officer) of the salaries and benefits of up to 251 officers.  Although the program has been on-going, a formal agreement is entered into every two years.  This year, the Province has provided a commitment for a one-year agreement only, with no further commitment for funding under the program at this time.    Revenue of $7.53 million is built into the Service budget each year for the CPP grant program.  In order to maximize the amount of funding received under this grant, the Service must maintain its uniform staffing levels at a pre-determined benchmark of at least 5,180 officers.  Uniform staffing levels have been maintained above this benchmark every year since the inception of the CPP Program in 1998 and the uniform strength for the duration of this grant term, which ends March 31, 2017, is projected to continue to exceed the benchmark.

The Executive Committee recommends that:

1.  City Council authorize the City of Toronto to sign the Amending Agreement to the Safer Communities - 1,000 Officers Partnership Program Agreement with the Province and the Toronto Police Services Board, subject to approval as to form by the City Solicitor.

The purpose of this report is to request the City’s Executive Committee to submit a recommendation to Toronto City Council to authorize the City of Toronto to enter into an Amending Agreement to the Safer Communities – 1,000 Officers Partnership Program Agreement between the Province of Ontario (Province), the City of Toronto and the Toronto Police Services Board.  This Amending Agreement was received on April 18, 2016, and amends the current Agreement, which expired on March 31, 2016, extending the term of the Agreement for a period of one year – April 1, 2016 to March 31, 2017.

Under the Safer Communities – 1,000 Officers Partnership Program, the Toronto Police Service (Service) may receive grant funding of up to $8.75 million annually to cover a portion ($35,000 per officer) of the salaries and benefits of up to 250 officers.  Although the program has been on-going, a formal agreement is entered into every two years.  This year, the Province has provided a commitment for a one-year agreement only, with no further commitment for funding under the program at this time. 

Revenue is built into the Service budget each year for this grant program.  In order to maximize the amount of funding received under the grant, the Service must maintain its uniform staffing levels at a predetermined benchmark of at least 5,510 officers.  Due to declining numbers of uniform officers, with few or no replacements being made, the Service no longer meets the requirements to obtain full funding under the grant.  With further separations of uniform members anticipated, and no plans to hire further uniform recruits in 2016, it is expected that the claim for period of the Amending Agreement will be less than half of the $8.75M funding available (amount claimed will vary depending on the number of uniform separations).  However, discussions are ongoing with the Province to negotiate changes to the terms and conditions of the Agreement that would allow the Service to maximize the claim under the grant program.

The Executive Committee recommends that:

1.  City Council request the Toronto Transit Commission to report to the Executive Committee by the fourth quarter of 2016 with respect to the Commission's strategic plan concerning the incorporation of automated vehicle technology within the City's transit system.

City Council on June 7, 8 and 9, 2016, referred Motion MM19.8 to the Executive Committee.

In January 2016 the "Wepod" was operated on a public street as part of a trial run in the Netherlands. During the trial it traveled along a public street and is planned for use between Wageningen and Ede in the province of Gelderland. The "Wepod" will operate using an app that will allow customers to enter a pick up point and a destination point on their smart device. It is expected to begin regular operations shortly. The City of Beverly Hills in California has not been particularly known for public transit in the past but it is looking to incorporate automated buses to pick up passengers which will then connect them to new rapid transit lines in the area. As with "Wepod," these will collect passengers at any pick up point and transport them to the transit lines, again using an app. Cities such as Lausanne, Switzerland, and Zhengzhou, China are exploring the use of automated buses and more jurisdictions are certain to follow. It is essential that with the current pace of technological change that the City of Toronto's public transit system properly prepare for the use of these new technologies.

The Executive Committee forwards the item to City Council without recommendation. 

The Executive Committee:

1.  Requested the Acting General Manager, Shelter, Support and Housing Administration, and the Director, Affordable Housing Office, should a Council decision on new enhanced federal/provincial "Investment in Affordable Housing Program" be required prior to the City Council meeting on October 5, 2015, to report directly to Council on July 12, 2016 with an update on the new programs and any authorities required for the City to participate in the delivery of program for the period 2016/17 and 2017/18.

As you are aware the recent federal and provincial budgets contained new and enhanced funding for affordable and supportive housing initiatives.

Key housing announcements in the federal budget included $1.4 billion over the next two years, 2016-17 and 2017-18, for capital repair and new construction through:

-  doubling investments in the current Investment in Affordable Housing (IAH) initiative ($504 million over two years). Funding needs to be matched by the provinces and territories;

-  increasing affordable housing for seniors ($200.7 million over two years) to support construction, repair and adaptation of housing for seniors. Funding does not need to be matched by the provinces and territories; and

-  providing $573.9 million over two years to help address energy and water efficiency retrofits of existing social housing units. This program is a directly funded federal program.

On June 28th the federal/provincial/territorial ministers responsible for housing will meet in Victoria, British Columbia to discuss next steps in activating these new investments.
 

It is anticipated that the Ontario government will participate in the federal initiative by providing additional funding through the Investment in Affordable Housing Program (IAH).

As a result, by late June or early July it is expected that the City will be informed by the province of its IAH allocation to support new housing allowances, new rental construction, home renovations and home ownership loans. It is also anticipated that the province will require Municipal Service Managers to sign an administrative agreement and provide a plan for the investment of funding by September 1st.

With the next Council meeting on October 5, 6 and 7, and because of the funding's importance to Toronto, it is critical that City officials be authorized to enter into the administrative agreement and provide an investment plan, consistent with the priorities of the Housing Opportunities Toronto 10-year Housing Action Plan.

As you are aware the recent federal and provincial budgets contained new and enhanced funding for affordable and supportive housing initiatives.

Key housing announcements in the federal budget included $1.4 billion over the next two years, 2016-17 and 2017-18, for capital repair and new construction through:

·  Doubling investments in the current Investment in Affordable Housing (IAH) initiative ($504 million over two years). Funding needs to be matched by the provinces and territories;

·  Increasing affordable housing for seniors ($200.7 million over two years) to support construction, repair and adaptation of housing for seniors. Funding does not need to be matched by the provinces and territories; and

·  Providing $573.9 million over two years to help address energy and water efficiency retrofits of existing social housing units. This program is a directly funded federal program.

On June 28th the federal/provincial/territorial ministers responsible for housing will meet in Victoria, British Columbia to discuss next steps in activating these new investments.
 

It is anticipated that the Ontario government will participate in the federal initiative by providing additional funding through the Investment in Affordable Housing Program (IAH).

As a result, by late June or early July it is expected that the City will be informed by the province of its IAH allocation to support new housing allowances, new rental construction, home renovations and home ownership loans. It is also anticipated that the province will require Municipal Service Managers to sign an administrative agreement and provide a plan for the investment of funding by September 1st.

With the next Council meeting on October 5, 6 and 7, and because of the funding's importance to Toronto, it is critical that City officials be authorized to enter into the administrative agreement and provide an investment plan, consistent with the priorities of the Housing Opportunities Toronto 10-year Housing Action Plan.

The Audit Committee recommends that:

1.  City Council approve the 2015 Consolidated Financial Statements as attached in Appendix A to the report (June 28, 2016) from the Treasurer.

The Audit Committee requested the Auditor General to report to the October 28, 2016 meeting of the Audit Committee on the estimated savings which would be achieved if the 67 outstanding recommendations previously issued by the Auditor General were to be fully implemented, and the effect these savings would have on the City's Annual Financial Statements.

Mike St. Amant, Treasurer, and Iqbal Ali, Acting Director, Accounting Services, gave a presentation to the Audit Committee on this Item.

This report presents the City of Toronto's Consolidated Financial Statements for the year ended December 31, 2015 to Committee and Council for approval and provides highlights of the City’s financial performance during 2015 and financial condition as of December 31, 2015.

This supplementary report amends Appendix A, to the 2015 Audited Consolidated Financial Statements, for approval by the Audit Committee and City Council.

The Audit Committee recommends that:

1.  City Council approve the 2015 Sinking Funds Statements as attached in Appendix A to the report (June 14, 2016) from the Treasurer.

This report presents the City of Toronto’s Sinking Funds Financial Statements for the year ended December 31, 2015 to Committee and Council for approval and provides highlights of the Sinking Funds' 2015 financial performance and financial condition as of December 31, 2015. 

The Audit Committee recommends that:

1.  City Council approve the 2015 Trust Fund Statements as attached in Appendix A to the report (June 14, 2016) from the Treasurer.

This report presents the City of Toronto’s Consolidated Trust Funds Financial Statements for the year ended December 31, 2015 to Committee and City Council for approval and provides highlights of the Trust Funds' 2015 financial performance and financial condition as of December 31, 2015.

The Audit Committee recommends that:

1.  City Council receive the report (June 14, 2016) from the Auditor General on the status of the financial audits of the City’s Agencies and Corporations for the year ended December 31, 2015.

The purpose of this report is to provide the Audit Committee and City Council with the status of financial audits of the City’s Agencies and Corporations for the year ended December 31, 2015.

The majority of the audits of the City’s Agencies and Corporations have been completed and approved by their respective Boards. Any financial statements that are outstanding will be available for the October 28, 2016 Audit Committee meeting.

The Audit Committee recommends that:

1.  City Council receive the 2015 audited financial statements of Arenas attached as Appendices to the report (June 14, 2016) from the Auditor General. 

The purpose of this report is to provide the Audit Committee and City Council with the 2015 audited financial statements of Arenas.

The 2015 audited financial statements for the eight City Arenas are presented to the Audit Committee after approval by their respective Boards or Committees of Management.  The external auditors, Welch LLP, advise that they have provided their comments on internal controls to each organization by way of a report to the Board.

The Independent Auditor's Report, accompanying financial statements, and internal control letter (where applicable) is appended to this report. 

The Audit Committee recommends that:

1. City Council approve the 2015 audited financial statements and management letters of the forty-three (43) Business Improvement Areas and also approve the 2014 audited financial statements and management letters of the two (2) Business Improvement Areas, attached as Appendices A to AT to the report (June 9, 2016) from the Treasurer and the Director, Business Growth Services, Economic Development and Culture.

The purpose of this report is to present the 2015 audited financial statements and management letters for forty-three (43) Business Improvement Areas (BIAs) and 2014 audited financial statements and management letters for two (2) Business Improvement Areas (BIAs) to Audit Committee and City Council for approval.

The Audit Committee recommends that:

1.  City Council receive the 2015 audited financial statements of Community Centres attached as Appendices to the report (June 14, 2016) from the Auditor General.

The purpose of this report is to provide the Audit Committee and City Council with the 2015 audited financial statements of Community Centres.

The 2015 audited financial statements for the ten Community Centres are presented to Audit Committee after approval by their respective Boards of Management.  The external auditors, Welch LLP, advise that they have provided their comments on internal controls to each organization by way of a report to the Board. 

Each Community Centre’s Independent Auditor’s Report, accompanying financial statements, and internal control letter (where applicable) is appended to this report. 

The Audit Committee recommends that:

1.  City Council receive for information, the 2015 Financial Statements and related documents for the following agencies and corporations:

- Exhibition Place

- Heritage Toronto

- Toronto Atmospheric Fund

- Toronto Parking Authority

- Toronto Public Library

- Toronto Transit Commission

- Toronto Zoo

- Yonge-Dundas Square

The Audit Committee received for information, the 2015 Financial Statements and related documents for the following corporations, having regard that the Statements have previously been considered by City Council:

- Invest Toronto

- Toronto Pan Am Sports Centre Inc.

- Toronto Port Lands Company

The following agencies and corporations have submitted 2015 Financial Statements and related documents to the Audit Committee for consideration:

- Exhibition Place

- Heritage Toronto

- Toronto Atmospheric Fund

- Toronto Parking Authority

- Toronto Public Library

- Toronto Transit Commission

- Toronto Zoo

- Yonge-Dundas Square

In addition, City Council on June 7, 8 and 9, 2016, received and forwarded the 2015 Financial Statements of the following corporations to the Audit Committee for information:

- Invest Toronto

- Toronto Pan Am Sports Centre Inc.

- Toronto Port Lands Company

Financial Statements for Exhibition Place for the year ended December 31, 2015.

Financial Statements for Heritage Toronto for the year ended December 31, 2015.

Consolidated Financial Statements for the Toronto Atmospheric Fund for the year ending December 31, 2015.

Financial Statements for the Toronto Parking Authority for the year ended December 31, 2015.

Financial Statements for the Toronto Public Library Board as at December 31, 2015.

Financial Statements for the Toronto Zoo as at December 31, 2015.

The Audit Committee recommends that:

1.  City Council request the General Manager, Facilities Management to ensure all current cleaning routines, as well as any future adjustments to cleaning routines, are benchmarked with industry standard cleaning times.

2.  City Council request the General Manager, Facilities Management to develop the corporate procedure to ensure compliance for measuring and establishing the cleanable area for a City facility.

3.  City Council request the General Manager, Facilities Management to validate the available measurements in accordance with the established corporate procedure.

4.  City Council request the General Manager, Facilities Management to:

a.  Implement a process to ensure that a complete and accurate inventory of City facilities receiving custodial services is centrally maintained. 

b.  Ensure the centralized data source includes all relevant information, including labour costs, to effectively monitor performance of custodial services and support operating decisions made by executive management as well as operational managers and supervisors.

c.  Establish a protocol for ensuring data is kept accurate and up-to-date for each City facility.

5.  City Council request the General Manager, Facilities Management to effectively workload each City facility receiving cleaning services, either in-house or contracted.  Such undertaking to include actions to:

a.  ensure accurate operational data is available

b.  workload each facility by applying current industry standard cleaning times and tasks

c.  schedule the cleaning workforce in accordance with the estimated workload.

6.  City Council request the General Manager, Facilities Management to assess and define the level of cleanliness that can be associated with each level of cleaning service in the Custodial Standard Service Model.

7.  City Council request the General Manager, Facilities Management to ensure each client group is provided with information about the cleaning service level they are receiving relative to the Custodial Standard Service Model and the associated costs of services provided.  Such information be used to examine the opportunities to achieve more economical cleaning services.

8.  City Council request the General Manager, Facilities Management to ensure that appropriate operational planning for cleaning services is performed to ensure workloads are based on a reasonable estimation of the productive labour hours of the workforce.

9.  City Council request the General Manager, Facilities Management to identify, monitor, and report on key performance metrics on a regular basis relative to internal and external benchmarks for the purposes of regularly assessing the effectiveness and efficiency of cleaning services.

10.  City Council request the General Manager, Facilities Management to implement a program of quality assurance inspections of cleaning services to be deployed across the City and adopted consistently by the Facilities Management Division.

11.   City Council request the General Manager, Facilities Management take appropriate action to control for the risk of bias in completing quality assurance inspections.

12.  City Council request the General Manager, Facilities Management to plan, implement and incorporate the results of customer satisfaction surveys to improve custodial services delivery.

13.  City Council request the General Manager, Facilities Management to collaborate with the Executive Director of Human Resources to ensure that vulnerable sector screening is adequately addressed for all City staff who provide services in high risk facilities, such as daycares.

14.  City Council request the City Manager to request Division Heads and Chief Executive Officers of City agencies and corporations to review the issues and recommendations included in this report and consider the relevance to their respective custodial operations.

15.  City Council request the General Manager, Facilities Management to explore opportunities to move to a daytime cleaning routine, including a pilot project, where feasible.

The Audit Committee considered the following Items together:

- AU6.9, headed "Audit of City Cleaning Services - Part 1: Opportunities to Control Costs, Improve Productivity and Enhance Quality of Cleaning Services"; and

- AU6.10, headed "Audit of City Cleaning Services - Part 2: Maximizing Value from Cleaning Contracts".

Beverly Romeo-Beehler, Auditor General, and Ina Chan, Assistant Auditor General, gave a presentation to the Audit Committee on these Items.

This report presents the results of the audit of custodial services provided by the Facilities Management Division.  The objective of this audit was to assess whether these services are effective, efficient and economical.

The audit results are presented in two separate reports:

·       Part 1, the management of overall cleaning services provided by Facilities Management, is contained in this report.

·       Part 2, the procurement and administration of cleaning services obtained under contract, is contained in a separate report entitled Maximizing Value from Cleaning Contracts

This report includes 14 recommendations.  The recommendations, in three main areas as follows, provide a roadmap for strengthening existing processes and should be implemented immediately:

·       Better data is needed to control costs and demonstrate value for money

·       Standardizing cleaning routines may help to contain costs

·       Monitoring performance will improve productivity, control costs and enhance quality.

Many of the issues and recommendations included in this report will also have relevance to other City divisions, agencies and corporations which oversee their custodial services independently of Facilities Management.

The recommendations are also particularly relevant as the City considers a City-wide real estate strategy.  Policy, process, and internal control improvements that result from implementing the recommendations can be leveraged across the City.  By strengthening Facilities Management, a strong foundation is established, should the City decide to move towards a more centralized City-wide service delivery model.

The Audit Committee recommends that:

1.  City Council request the General Manager, Facilities Management to ensure specifications, included in call documents to procure cleaning services, are based on accurate measurements of cleanable area.

2.  City Council request the General Manager, Facilities Management, in consultation with the Director, Purchasing and Materials Management Division, to ensure the labour estimates included in call documents for cleaning services are developed using benchmarked industry cleaning times.

3.   City Council request the General Manager, Facilities Management to compare current contracted cleaning service levels to the standard service level in the Custodial Standard Service Model and industry cleaning times to examine opportunities to reduce costs.

4.  City Council request the General Manager, Facilities Management to ensure the scope of work included in future procurement processes for contracted cleaning services is consistent with the Custodial Standard Service Model.

5.  City Council request the General Manager, Facilities Management, in consultation with the Director, Purchasing and Materials Management Division, to review the sourcing of consumables to determine the most economical and environmentally friendly procurement strategy for the supply of consumables to facilities where cleaning services are provided by a vendor.

6.  City Council request the General Manager, Facilities Management to implement appropriate controls to monitor the acquisition and use of consumables provided by contractors.

7.  City Council request the General Manager, Facilities Management, in consultation with the Director, Purchasing and Materials Management Division, to review the evaluation process for the procurement of cleaning contracts.  Such review to consider industry practices for evaluation criteria, scoring methodology, and weighting of criteria including the relative importance of price. 

8.  City Council request the General Manager, Facilities Management, in consultation with the Director, Purchasing and Materials Management Division, to ensure adequate analysis of the reasonability of the cost of contract changes is performed.  Documentation to support the cost of contract changes should be retained in the respective purchasing and contract files.

9.  City Council request the General Manager, Facilities Management, to implement controls to monitor actual services delivered and cleaning hours provided are in accordance with contracts.  Where services do not adhere to contracts, payments should be adjusted for any variances in actual cleaning hours provided.   

10.  City Council request the General Manager, Facilities Management, in consultation with the Director, Purchasing and Materials Management Division, to review the standard call documents for cleaning contracts to ensure that the pricing structure allows changes to be made where the actual services delivered significantly deviates from the award.

11.  City Council request the General Manager, Facilities Management to monitor and supervise all cleaning contracts to ensure compliance with contractual terms and obligations to maintain, and make available for review, the records related to the contract.

12.  City Council request the General Manager, Facilities Management to work collaboratively with the Fair Wage Office to provide any necessary contract related records required to strengthen the compliance reviews conducted to ensure fair wages.

13.  City Council request the City Manager, in consultation with the City Solicitor, to consider the City’s obligation to notify appropriate authorities about contractor business activities related to irregular contractor payroll records.

14.  City Council request the General Manager, Facilities Management to develop and implement a standard protocol for evaluating custodial contractor performance.  The protocol should include:

a.  A standard form for contractor performance evaluation

b.  Annual review cycles and a mandatory review prior to exercising a renewal option on a contract

c.  Documentation of the results of such performance evaluations to be retained within the contract file.

15.  City Council request the General Manager, Facilities Management to complete a service review of all current cleaning contracts including an analysis of their cost effectiveness.  The results of such review to be reported to Government Management Committee.

16.  City Council request the City Manager to request Division Heads and Chief Executive Officers of City agencies and corporations to review the issues and recommendations included in this report and consider the relevance to their respective operations.

The Audit Committee considered the following Items together:

- AU6.9, headed "Audit of City Cleaning Services - Part 1: Opportunities to Control Costs, Improve Productivity and Enhance Quality of Cleaning Services"; and

- AU6.10, headed "Audit of City Cleaning Services - Part 2: Maximizing Value from Cleaning Contracts".

Beverly Romeo-Beehler, Auditor General, and Ina Chan, Assistant Auditor General, gave a presentation to the Audit Committee on these Items.

This report presents the results of the audit of cleaning services provided by the Facilities Management Division.  The objective of this audit was to assess whether these services are effective, efficient and economical.

The audit results are presented in two separate reports:

·        Part 1, the management of overall cleaning services provided by Facilities Management, is contained in a separate report entitled Opportunities to Control Costs, Improve Productivity and Enhance Quality of Cleaning Services

·        Part 2, the procurement and administration of cleaning services obtained under contract, is contained in this report.

This report includes 16 recommendations to strengthen the procurement, management, and administration of cleaning contracts.  Addressing the recommendations in a timely manner presents an opportunity to achieve significant savings on current and future cleaning contracts by:

·        Ensuring cleaning specifications are data driven

·        Improving procurement of cleaning services

·        Strengthening contract monitoring to ensure value-for-money is achieved.

The Audit Committee recommends that:

1.  City Council request the General Manager, Transportation Services Division, in consultation with the Director, Purchasing and Materials Management Division, to implement a process to assess the impact of awarding construction contracts to materially unbalanced bids tendered by the Division.  Steps to be included in the process should consist of:

a.  Performing a reverse bid analysis of unit price Transportation contracts on an annual basis to quantify the negative financial impact of materially unbalanced bids; and

b.  Performing reconciliations between planned and actual road construction contracted services and costs to identify negative impact of materially unbalanced bids on service delivery, such as cancellations or delays in work.

2.  City Council request the General Manager, Transportation Services Division, to take steps to ensure quantity estimates in tender documents are reasonably accurate.  Steps to be taken should include but not be limited to:

a.  Analyzing historical information on prices and quantities;

b.  Ensuring that road resurfacing tender documents contain actual field measurements such as original handwritten notes and drawings from the field, and documented rationale for changes to the estimated quantities;

c.  Ensuring staff justify the significant variances between estimated and actual quantities and such explanation clearly indicate why the variances could not have been anticipated;

d.  Requiring staff responsible for estimation to sign off on the estimated quantities and any subsequent changes to the estimated quantities; and

e.  Ensuring measurements taken for estimation purposes are reviewed by management for reasonability.

3.  City Council request the Director, Purchasing and Materials Management Division, in consultation with the General Manager, Transportation Services Division, to:

a.  Develop and implement specific criteria for identifying potentially unbalanced bids in road related contracts;

b.  Ensure appropriate data is captured to allow unbalanced bid analysis;

c.  Train staff on how to apply the criteria; and

d.  Develop a decision framework for accepting or rejecting materially unbalanced bids. 

4.  City Council request the General Manager, Transportation Services Division, and the Director, Purchasing and Materials Management Division, to ensure that bid information and contract documents are organized in a manner that facilitates analysis of historical tender information.

5.  City Council request the Director, Purchasing and Materials Management Division, in consultation with the City Solicitor, to develop and implement an effective policy to address potential risks arising from sub-contracting arrangements between competitive bidders.

6.  City Council request the General Manager, Transportation Services Division, to review differences in district practices in relation to preparation of tender estimates and record keeping with a view to ensuring best practices are incorporated in all district offices. 

7.  City Council request the City Manager to forward the audit report (June 27, 2016) from the Auditor General, to other relevant City divisions and major agencies and corporations which acquire contracted construction services on a regular basis for information.

The following City officials gave a presentation to the Audit Committee on this Item:

- Beverly Romeo-Beehler, Auditor General

- Jane Ying, Assistant Auditor General

- Ruchir Patel, Senior Audit Manager

- Stephen Buckley, General Manager, Transportation Services

- Michael Pacholok, Director, Purchasing and Materials Management.

The Auditor General’s 2015 Audit Work Plan included a review of City-wide major contracts for road construction and resurfacing.  The audit focused on a review of 55 local road resurfacing (also known as paving), 94 utility cut, and 14 sidewalk repair contracts, totaling $169 million, $187 million, and $27 million respectively, in contract value delivered by the Transportation Services Division since 2010. 

The objectives of the audit were to assess whether proper management controls were in place to ensure fair and competitive tendering processes, and whether the City received value for money in acquiring road resurfacing, utility cut, and sidewalk repair contracted services.

Our findings underscore the importance of identifying and addressing potentially unbalanced bids during a tendering process to protect the City from financial loss and ensuring a level playing field for bidders.

The Audit Committee recommends that:

1.   City Council request the Treasurer to require the City's Long-Term Disability (LTD) Benefits Administrator to provide up-to-date diagnostic statistics and reports, in aggregate data, to the City reflecting claimants' initial and current primary diagnoses. 

2.   City Council request the Treasurer to assess, within the framework of Human Rights and Privacy legislation, the feasibility and appropriateness of requiring the City's Long-Term Disability (LTD) Benefits Administrator to ensure all new mental and nervous disorder claims, and claims in which the diagnoses change to mental health and nervous disorders, are supported by medical reports from specialists (Psychiatrist or Psychologist) prior to or soon after the claim approval to assess claimants' return to work potential and accommodation needs.

3.   City Council request the Treasurer to implement adequate steps to ensure that the City's Long-Term Disability (LTD) Benefits Administrator conducts telephone interviews with all LTD benefits claimants' supervisory staff as part of the claim adjudication process.

4.   City Council request the Treasurer to develop a process whereby the appropriate City staff are informed by the City's Long-Term Disability (LTD) Benefits Administrator of workplace related issues associated with LTD claims and return to work.  The workplace related issues should be communicated in a manner that complies with applicable privacy legislation and in a timely manner allowing the appropriate City staff to adequately address the issues and accommodate LTD claimants' needs for returning to work.

5.   City Council request the Treasurer to review the need and consider incorporating into the new five-year contract with the City's Long-Term Disability (LTD) Benefits Administrator requirements to develop and implement specific criteria to help ensure:

a.  LTD benefits claimants' timely participation in rehabilitation program; and

b.  Case Managers undertake timely return to work actions during claim management process.

6.   City Council request the Treasurer to review the need and consider incorporating into the new five-year contract with the City's Long-Term Disability (LTD) Benefits Administrator performance measures pertaining to:

a.   Acquiring timely medical updates to support continuation of LTD benefits;

b.  Timely claim management actions to address claimants' delays in responding to the Administrator's contact; and

c.  Timely claim management actions in arranging for rehabilitation activities for claimants.

7.   City Council request the Treasurer to review the need and consider incorporating into the new five-year contract with the City's Long-Term Disability (LTD) Benefits Administrator a requirement to provide the City with internal audit results if available.  These internal audit results should be reviewed by the appropriate City staff to ensure ongoing compliance with contractual requirements.

8.   City Council request the Treasurer to require the City's Long-Term Disability (LTD) Benefits Administrator to take steps to ensure all active claims are supported by medical information provided by physicians who are licensed to practise medicine in Ontario.  Such steps should include but not be limited to:

a.  Review all active claims and the license status of the physicians and specialists, including the two claims supported by the physicians whose licenses had either been suspended or revoked; and

b.  Implement a process to verify physicians' license status during the initial claim assessment.  The license verification process should also be conducted on all active claims at least on an annual basis.

9.  City Council request the Treasurer to ensure the amount of refund received from Manulife in relation to extra tax and administration fee charges for Long-Term Disability benefits administration is complete and accurate.

This interim report provides the results of the Auditor General's review of a sample of Long-Term Disability (LTD) benefits claim files as part of the Auditor General's Phase Two Audit of the City LTD benefits program.

The Auditor General’s 2015 Audit Work Plan included an audit of the City’s management of LTD benefits.  The audit was divided into two phases.  Phase One, which focused on how City staff managed the LTD benefits was completed in October 2015, and the audit report was submitted to the Audit Committee in October 2015:

http://www.toronto.ca/legdocs/mmis/2015/au/bgrd/backgroundfile-84556.pdf

Phase Two of the audit included a detailed review of a sample of LTD claim files administered by Manulife.  The Phase Two audit is currently underway.  A full audit report will be presented to the City Audit Committee at its October 2016 meeting.

The City's current five-year contract with Manulife will expire in December 2016, and the award of a new five-year contract is pending City Council approval.  In view of the pending contract award and the ensuing preparation of a new contract, we are providing our claim review findings and recommendations earlier through this interim report.

The Audit Committee recommends that:

1.  City Council receive the report (June 14, 2016) from the Auditor General for information.

2.  City Council not authorize the public release of Confidential Attachment 3 to the report (June 14, 2016) from the Auditor General.

On an annual basis, the Auditor General reviews the implementation status of outstanding audit recommendations and reports the results of the review to Council through the Audit Committee.  This report provides information regarding the implementation status of audit recommendations contained in various reports issued by the Auditor General to City divisions. 

Since January 1, 1999, the Auditor General has issued 243 audit reports to City divisions containing 1,781 recommendations.  As of April 2016, City divisions have fully implemented 82 per cent or 1,460 of the audit recommendations.

More specifically, for the five-year period from July 1, 2010 to June 30, 2015, the Auditor General issued 67 audit reports to City divisions containing a total of 605 recommendations.  Twelve of these recommendations are no longer relevant due to re-organizations or changes to business practices.  Of the remaining 593 relevant recommendations, City divisions have fully implemented 434 or 73 per cent of the recommendations.

Although management has made progress in implementing audit recommendations, 36 recommendations have been outstanding for over three years of which 28 have been outstanding for five or more years.  Management is taking steps to implement these recommendations.

Continued efforts to implement outstanding recommendations will provide additional benefits to the City such as cost savings, improved controls, additional revenue and enhanced service delivery.

The Audit Committee recommends that:

1.  City Council receive the report (May 30, 2016) from the Auditor General for information.

This report provides information regarding the implementation status of recommendations made by the Forensic Unit of the Auditor General’s Office that were publicly reported through Audit Committee. These recommendations were made in the context of the annual Fraud and Waste Hotline reports and other special reviews conducted.

The Auditor General issued reports related to the operation of the Fraud and Waste Hotline Program. Since January 2007, a total of 30 recommendations have been reported publicly. Twenty-three of them had been implemented before 2015. Recommendations may also have been made to management staff in the context of individual allegation which resulted in investigation reports. The implementation status of confidential recommendations is communicated directly to the City Manager.

In relation to the 30 recommendations, the Auditor General verifies information provided by management to determine the validity of management assertions related to each recommendation. The results of this review are communicated to Council through Audit Committee.

The results of our verification indicate management has not fully implemented five outstanding recommendations made in public reports by the Auditor General’s Forensic Unit.

Continued efforts to implement outstanding recommendations will provide additional benefits to the City through cost savings, additional revenue and enhanced service delivery.

The Audit Committee recommends that:

1.  City Council receive the report (June 14, 2016) from Auditor General for information.

On an annual basis the Auditor General reviews the implementation status of outstanding audit recommendations and reports the results to City Council through the Audit Committee.  This report provides the results of the Auditor General's 2016 follow-up review of audit recommendations to City agencies and corporations.

From July 1, 2010 to June 30, 2015, the Auditor General issued 17 reports to City agencies and corporations containing a total of 212 recommendations.  Six of these recommendations are no longer applicable due to either re-organizations or changes to business practices.  Of the remaining 206 recommendations, City agencies and corporations have implemented, as of April 2016, 67 per cent or 139 of the applicable recommendations.

Continued efforts to implement outstanding recommendations will provide additional benefits to City agencies and corporations such as cost savings, additional revenue and enhanced service delivery.

This update on the status of outstanding recommendations includes the following City agencies and corporations:

1.      Toronto Police Services

2.      Toronto Community Housing Corporation

3.      Toronto Transit Commission

4.      Sony Centre for the Performing Arts

5.      Build Toronto

6.      Invest Toronto

7.      Toronto Parking Authority

The Audit Committee recommends that:

1.  City Council receive the report (June 14, 2016) from the Auditor General for information.

Since 2011, the Auditor General’s Work Plan has included a project in relation to continuous controls monitoring of selected City expenses.  The objective of the Continuous Controls Monitoring Program is to provide periodic reports to management which assist in proactively monitoring financial transactions, detecting unusual expenses and identifying areas where internal controls could be strengthened.

Telecommunication expenses are included in the Auditor General’s Continuous Controls Monitoring Program as expenditures are significant and a number of issues were identified during our 2014 audit of telecommunication expenses.  The City currently maintains approximately 17,500 wireless phones and devices (includes pagers and data modems) and over 22,000 landlines or voice-over-internet phones (VOIP).  In 2015, the total cost for landlines/VOIP and wireless phones and devices was $12.8 million.

This report provides the results of our monitoring of City telecommunication expenses incurred from January 1, 2015 to December 31, 2015.  Our analysis identified over 1,100 phones and devices meeting one or more of the pre-determined exception criteria.  The exceptions were provided to management for review and comment.  Management responses and actions are provided in Appendix 1.

As a result of management actions, savings of approximately $218,300 have been identified for 2015.  These savings include one time savings of $5,600 and $212,700 in annually recurring savings which will result in total savings of approximately $1.06 million over a 5-year period.

The Audit Committee recommends that:

1.  City Council receive the report (June 14, 2016) from the Auditor General for information.

The Auditor General initiated continuous monitoring of overtime costs and standby pay in 2011 to highlight trends and changes in related costs. As part of the Continuous Controls Monitoring Program, the Auditor General's Office provides management with exceptions warranting further review.

This report provides the results of our continuous monitoring of City overtime costs and standby payments for 2015.

In 2015, staff overtime totaled $51.4 million. This is a decrease of approximately $128,000 and approximately two per cent or 26,000 hours when compared to 2014. During 2015, the City of Toronto also hosted the Pan Am Games. The overtime incurred for this event was approximately 32,000 hours amounting to $2 million. If this overtime is excluded, the overall decrease in overtime would be approximately 4 per cent when compared to 2014.

For the years 2013 and 2014 overtime increased consecutively. The significant increase was due to the 2013 winter storm and its after effects that continued in 2014.

In 2015, standby pay totaled $6 million. Standby pay has increased by approximately $300,000 in 2015 when compared to 2014.

The Audit Committee recommends that:

1.  City Council receive the Auditor General’s amended 2016 Audit Work Plan.

The purpose of this report is to advise the Audit Committee of amendments to the Auditor General’s 2016 Audit Work Plan.

The Auditor General, after considering recent audit results and resource availability, decided to add the following three projects to the 2016 audit work plan:

- Audit of the Fair Wage Office

- Audit of Toronto Transit Commission (TTC) Accounts Payable

- Audit of TTC Telecommunication Expenses

The Audit Committee recommends that:

1.  City Council receive the report (May 31, 2016) from Robert Gore & Associates, Chartered Accountants, for information.

Robert Gore & Associates, Chartered Accountants, reporting on the Results of Applying Specified Auditing Procedures to Financial Information, other than Financial Statements, for the Year Ended December 31, 2015, for the Auditor General's Office; and advising that they found no exceptions to the adherence to the policies, procedures and delegated authorities as they applied to their test sample of transactions.

Committed to Integrity, Transparency and Accountability

This report represents the 2015 annual report on fraud and wrongdoing at the City including the activities of the Fraud and Waste Hotline Program (the Hotline Program).  It highlights only those issues that have been communicated to the Auditor General’s Office.  It does not represent an overall picture of fraud or other wrongdoing across the City.

In 2015, 572 complaints were received by the Auditor General’s Office.  A significant number of complaints included at least two or more allegations.  We estimate the actual number of allegations is in the range of 800.

The Auditor General’s Forensic Unit is comprised of a multi-disciplinary team of professionals that operate the Hotline Program and collectively possess the expertise to resolve a broad range of complaints and conduct investigative work into allegations that are often complex in nature.

All complaints are triaged based on a number of considerations including the nature of the allegations, previous similar complaints, audit issues identified by the Auditor General’s Office and potential risks.  The Forensic Unit does not have sufficient resources to fully investigate all allegations received and is selective in the investigative work it conducts or leads.  In 2015, the Forensic Unit conducted preliminary investigative work in 85 per cent of complaints.  In cases where additional work is required, complaints are usually forwarded to management to further investigate the matter.  Management reports the results of its investigations that then become the subject of independent oversight by the Forensic Unit.  A determination is made as to the adequacy of management’s work and whether additional investigative work will be conducted by the Auditor General’s Office. Not all matters can or should be investigated by management.  Echoing concerns in last year’s annual report, lean resourcing is impacting every stage of our operations.  The level of oversight by the Forensic Unit due to current resources presents a risk to the City.

In relation to investigations conducted by management, it is critical that management led investigations be conducted by staff qualified to deal with the sensitivities of investigating wrongdoing.  Despite corporate training developed by Human Resources on “How to Conduct Workplace Investigations”, given the complexity of fraud and wrongdoing, management has often requested guidance from the Auditor General’s Forensic Unit.  To maintain independence, the Forensic Unit should not be guiding management actions in workplace investigations.  There appears to be a continuing need to ensure comprehensive training and resources are made available to support City staff tasked with investigating complaints.

The Board of Health recommends that:  

1.  City Council request the City Manager to provide the letter required by clause 56.1(3)(c) of the Controlled Drugs and Substances Act indicating that Council supports the implementation of small scale supervised injection services at Toronto Public Health (The Works), Queen West-Central Toronto Community Health Centre and South Riverdale Community Health Centre.

The Board of Health:  

1.  Supported the implementation of small-scale supervised injection services at Toronto Public Health (The Works), Queen West-Central Toronto Community Health Centre and South Riverdale Community Health Centre;

2.  Directed that the Board of Health and the Medical Officer of Health submit and complete Health Canada's application form for "a Section 56.1 exemption for medical purposes under the Controlled Drugs and Substances Act regarding activities at a supervised consumption site";

3.  Forwarded the report (June 16, 2016) from the Medical Officer Health to the provincial Minister of Health and Long-Term Care and requested that he provide the letter required by clause 56.1(3)(b) of the Controlled Drugs and Substances Act in respect of small scale supervised injection services at Toronto Public Health (The Works), Queen West-Central Toronto Community Health Centre and South Riverdale Community Health Centre;

4.  Forwarded the report (June 16, 2016) from the Medical Officer Health to the Chief Medical Officer of Health for the Province of Ontario and requested that he provide the letter that is required by clause 56.1(3)(g) in respect of small scale supervised injection services at Toronto Public Health (The Works), Queen West-Central Toronto Community Health Centre and South Riverdale Community Health Centre;

5.  Forwarded the report (June 16, 2016) from the Medical Officer Health to the provincial Minister of Community Safety and Correctional Services and requested that he provide the letter required by clause 56.1(3)(h) of the Controlled Drugs and Substances Act in respect of small scale supervised injection services at Toronto Public Health (The Works), Queen West-Central Toronto Community Health Centre and South Riverdale Community Health Centre;

6.  Requested the Ministry of Health and Long-Term Care, to fund 100 percent of the capital and operational costs for implementation of small-scale supervised injection services at Toronto Public Health (The Works), Queen West-Central Toronto Community Health Centre, and South Riverdale Community Health Centre;

7.  Directed the Medical Officer of Health to submit a comprehensive program proposal to the Ministry of Health and Long-Term Care, requesting capital and operating funding for Toronto Public Health (The Works) to implement supervised injection services; and

8.  Urged the Ministry of Health and Long-Term Care to increase capacity (spaces and diversity of program options) in the drug treatment system in Toronto to enable on-demand access for people seeking help, including clients of supervised injection services.

The Medical Officer of Health gave a presentation on Implementing Supervised Injection Services in Toronto.

A supervised injection service (SIS) is a health service that provides a safe and hygienic environment where people can inject pre-obtained drugs under the supervision of a nurse. More than 90 SISs are operating worldwide. The Toronto and Ottawa Supervised Consumption Assessment (TOSCA) study concluded that Toronto would benefit from multiple supervised injection services that are integrated into existing health services already serving people who inject drugs.

The TOSCA report concluded that conditions in Toronto warranted implementation of SIS. Between 2004 and 2014 there was a 77 percent increase in the reported number of people dying from overdose in Toronto – from 146 in 2004 to 258 in 2014, the highest annual number to date. Of particular concern is the role of opioids such as heroin and fentanyl in these deaths. There is a high demand for harm reduction services in Toronto with over 100,000 client visits and almost 1.9 million needles distributed in 2015.

In March 2016, the Medical Officer of Health (MOH) reported to the Board of Health (BOH) that Toronto Public Health (The Works), Queen West-Central Toronto Community Health Centre (Queen West), and South Riverdale Community Health Centre (South Riverdale) are proposing to add small-scale SIS to their existing clinical health services. The BOH supported initiation of a coordinated community consultation, with a request to report back on the results to the BOH in July. This report responds to that request.

The three health care organizations worked together to align consultation efforts. Plans were developed with input from the ward councillor that included common and organization-specific activities. An external vendor was retained to facilitate and report on certain activities, including public meetings, focus groups and an online survey. Input was gathered about SIS in general and for each of the three locations regarding perceived benefits and concerns about SIS, and suggestions of how to address concerns. A large majority of respondents identified benefits associated with SIS (between 84 and 96 percent depending on location), including reducing overdoses and the risk of infectious diseases such as HIV, reducing public injection and increasing the use of other health and social services. Concerns were identified by between 14 and 36 percent of respondents (depending on location). Respondents could identify both benefits and concerns. Concerns included a potential increase in crime and community safety issues, negative behaviours of service users, and a negative impact on community reputation. Strategies to address concerns raised included establishing community advisory committees, ensuring sufficient waiting room space and service delivery hours, developing police protocols, and active monitoring and evaluation. A summary of program proposals for each of the organizations seeking to implement SIS were developed, and are included in the appendix of this report.

Legal operation of an SIS in Canada requires an exemption under section 56.1 (2) of the Controlled Drugs and Substances Act (CDSA), which is granted by the federal Minister of Health. The exemption application includes an extensive list of documentation and letters of opinion from various stakeholders, including the municipal government. This staff report seeks support from the BOH and City Council to implement integrated SIS at the three health organizations named in this report, authority for the BOH and MOH to submit an exemption application to the federal Minister of Health and for the BOH to advocate for capital and operational funding from the provincial government.

The Board of Health recommends that:

1.  City Council appoint Dr. Barbara Yaffe as the acting Medical Officer of Health, effective August 1, 2016 until such time as Council appoints a new Medical Officer of Health.

Dr. McKeown, the current Medical Officer of Health (MOH) has announced his retirement. His last day of employment with the City of Toronto will be July 31, 2016. An executive search firm has been retained to assist with the recruitment for a new MOH. It is anticipated that the recruitment process will not be completed before the fall of 2016.  As a result, the appointment of an acting MOH is required.

The Civic Appointments Committee recommends that:

1. City Council appoint Michael Beswick as Chair of the Metropolitan Toronto Pension Plan Board of Trustees, and Chair of the Metropolitan Toronto Police Benefit Fund Board of Trustees, at pleasure of Council, for a term of office ending on November 30, 2018, and until a successor is appointed.

This report presents the Treasurer's recommendations for the appointment of a public member to the position of Chair for the following two pension committees:

i. Metropolitan Toronto Pension Plan; and

ii. Metropolitan Toronto Police Benefit Fund.

The Civic Appointments Committee recommends that:

1. City Council appoint Lena Recollet as the Aboriginal community representative to the Heritage Toronto Board of Directors, at pleasure of Council, for a term of office ending on November 30, 2018, and until a successor is appointed.

2. City Council direct that the confidential information in Confidential Attachment 2 to the report (June 28, 2016) from the Nominations Selection Committee, Heritage Toronto Board of Directors, remain confidential in its entirety as it relates to personal information about an identifiable individual being considered for appointment to the Heritage Toronto Board of Directors.

The Heritage Toronto Nominations Selection Committee for the Heritage Toronto Board of Directors recommends that City Council appoint an Aboriginal community representative to the Heritage Toronto Board.

The Community Development and Recreation Committee recommends that:

1.  City Council direct the General Manager, Shelter Support and Housing Administration and the Executive Director, Social Development, Finance and Administration to work with the Councillors for Wards 11 and 13, the local community and other stakeholders, to develop a plan for a shelter program that will meet the needs of an appropriate number of homeless men at 731 Runnymede Road and make a positive contribution to the neighbouring community.

2. City Council direct the Deputy City Manager, Cluster A to retain a third party facilitator or independent community outreach worker preferably through a local community agency, to outreach and engage with local residents, shelter users, businesses, service providers, ward Councillors and other stakeholders to work with the community to better understand and identify concerns and service enhancements required in the area of 731 Runnymede Road to support the community and shelter.

3. City Council direct the General Manager, Shelter, Support and Housing Administration to report to the September 20, 2016 meeting of the Community Development and Recreation Committee on the proposed shelter program plan for 731 Runnymede Road.

4. City Council direct the Director of Real Estate Services to negotiate a lease for the use of 731 Runnymede Road by the City of Toronto, or otherwise secure the property, on terms acceptable to the Chief Corporate Officer and in a form acceptable to the City Solicitor, subject to approval of the proposed shelter program plan requested in Recommendation 3 above by the Community Development and Recreation Committee in September 2016 and City Council in October 2016.

5.  City Council approve, as part of the plan for the shelter program at 731 Runnymede Road, the inclusion of the following initiatives and strategies to strengthen community support in the local area:

a.  City Council direct the General Manager, Shelter, Support and Housing Administration and Executive Director, Social Development, Finance and Administration to convene a Community Liaison Committee with representation from both Wards 11 and 13, including local residents, agency staff, clients, local Councillors and City staff to work on the shelter's establishment in the new location and to refine the shelter service program.

b.  City Council direct the General Manager, Shelter, Support and Housing Administration to convene the services of a third party design expert to work with staff and the Community Liaison Committee to design the exterior of the shelter so it is functional and attractive.

c. City Council direct the General Manager, Shelter, Support and Housing Administration to establish a communications platform (such as a website or email service) where residents can obtain information and regular reports from the Community Liaison Committee meetings in both English and Portuguese in accordance with the City's translation policies.

d.  City Council direct the Executive Director, Social Development, Finance and Administration to report to the Community Development and Recreation Committee with recommendations for a "York/Weston/Junction Strategy" to improve economic development, access to City and social services and land-use planning to improve neighbourhood wellbeing; the Strategy to:

i.  be developed in coordination with relevant City agencies and

divisions, including the Toronto Public Library, Toronto Transit Commission, Toronto Public Health and Toronto Police;

ii.  be developed through a robust community engagement process that is inclusive of local residents, businesses, faith groups and social service agencies; and

iii. make recommendations to provide adequate funding for the plan.

e.  City Council direct the Executive Director, Social Development, Finance and Administration and General Manager of Shelter, Support and Housing Administration, in consultation with the Toronto Police Service, Public Health, other City divisions, local residents, businesses and service providers to develop a "Safe Growth" plan for the York/Weston/Junction area; the Plan to:

i.  address issues of safety and security in the neighbourhood;

ii.  develop a Community Response Plan that outlines standards for responding to neighbours' concerns; and

iii.  conduct a safety audit of Runnymede Park.

f.  City Council direct the General Manager, Shelter, Support and Housing Administration to work with the General Manager, Transportation Services to improve the safety, visibility and appearance of the underpass on Runnymede Road and the train tracks by installing lighting and animating the space.

g.  City Council request the General Manager, Shelter, Support and Housing Administration and Executive Director, Social Development, Finance and Administration to work with staff from the Toronto Transit Commission to explore opportunities to improve access to transit in the local neighbourhood.

h.  City Council request the General Manager, Shelter, Support and Housing Administration to work with the General Manager, Toronto Employment and Social Services to develop a coordinated service model for clients in the 731 Runnymede shelter program in order to better connect clients to housing, income supports and employment and training opportunities to help them achieve housing stability.

i.  City Council request the Medical Officer of Health to write to the Minister of Health requesting Ministry support for a community health provider or satellite primary care clinic within the Rockcliffe–Smythe community to support existing residents and residents of the 731 Runnymede Road shelter.

j.  City Council request the Medical Officer of Health to include funding for a Community Health Officer in the Rockcliffe-Smythe community to support existing residents and the residents of the 731 Runnymede Road shelter in the 2017 Operating budget submission for Public Health.

k.  City Council request the General Manager, Shelter, Support and Housing Administration to meet with the Toronto Central Local Health Integration Network to explore opportunities to provide coordinated health services for clients in the 731 Runnymede shelter program.

l.  City Council direct the General Manager, Economic Development and Culture to support the development of a Business Improvement Area (BIA) in the area.

m.  City Council direct the General Manager, Shelter Support and Housing Administration to conduct a six month review of operations, in consultation with the Community Liaison Committee, and the results be reported back to Community Development and Recreation Committee.

4.  City Council request the General Manager, Children's Services to monitor the growing school enrolment at Parkside Early Learning and Child Care Centre and to consider re-establishing the preschool program when it is viable.

The Community Development and Recreation Committee recommends that:

1.  City Council direct the Deputy City Manager, Cluster A to:

a.  Report to the Community Development and Recreation Committee in the fourth quarter of 2016 on recommendations on raising awareness on homelessness in the City of Toronto;

b.  Issue a Request for Expression of Interest (REOI) to solicit best practice on raising awareness on homelessness and the need for shelters throughout Toronto as well as for best practice for community outreach and shelter relocation in new neighbourhoods; and

c.  Share the Terms of Reference of the REOI with the Chair and Vice Chair of the Community Development and Recreation Committee prior to its issue.

The Community Development and Recreation Committee:

1.  Requested the Deputy City Manager, Cluster A, in consultation with the Chief Corporate Officer, to report directly to the July 12, 2016 City Council meeting on the feasibility of purchasing the following former Goodwill properties in Toronto for shelter purposes: 231 Richmond Street East, 60 Overlea Boulevard, 585 St. Clair Avenue West, 345 Bloor Street East, 4975 Dundas Street West, 350 Progress Avenue, 2462 Eglinton Avenue East, and 871 Islington Avenue.

2.  Requested the Deputy City Manager, Cluster A, to report to the Community Development and Recreation Committee on September 20, 2016 on the hiring and/or contracting of a professional facilitator, within existing resources, to assist with community consultation and engagement.

The Economic Development Committee recommends that:

1.  City Council receive the report (June 20, 2016) from the General Manager, Economic Development and Culture for information.

From April 7 to 16, 2016 Mayor John Tory led a delegation of business and academic leaders to China and Japan to promote Toronto-produced goods and services in the Asian market and to promote the benefits of doing business in Toronto.  The goal of the mission was to create more jobs and investment opportunities in Toronto and to reaffirm our relationships with key cities in China and Japan.  The main focus of the mission was to sell Toronto’s strengths as Canada’s financial and business capital, a hub for higher education and research, and to encourage investment in multiple sectors including urban infrastructure and clean technology.

This report provides a summary of the Mayor's Asia Mission to China and Japan, with special highlights on some of the key activities, outcomes and follow-up requirements of the mission.

The Economic Development Committee recommends that:

1.  City Council approve the application submitted by Ivanhoe Cambridge and Metrolinx for Imagination, Manufacturing, Innovation, Technology (IMIT) Development Grants and Brownfield Remediation Tax Assistance as a Transformative Project, subject to completion of all of the following:

-  Office building 1 at 45 Bay Street comprising of at least 120,774 m2. (1,300,000 sf) to be constructed and occupied within five years of final Site Plan Approval;

-  Office building 2 at 141 Bay Street comprising at least 92,903 m2. (1,000,000 sf) or the amount allowed through the planning approval process whichever is lower, to be substantially completed within fifteen years of Council approval of this report provided there is adequate sewer capacity to proceed;

-  The privately owned publicly accessible space (POPS) across the rail corridor of at least 0.4 ha (1 acre);

-  The "roughed-in" LRT platform in office building 1;

-  The Metrolinx bus terminal in office building 1 (not eligible for incentive);

-  The East Bay Teamway improvements;

-  The PATH connections to Union Station and the Air Canada Centre;

-  The PATH connections to the east side of Yonge Street;

-  Streetscape  improvements surrounding the site;

-  Approval of Zoning for Phase 2;

-  Meeting all other IMIT program requirements.

2.  Prior to the payment of any Imagination, Manufacturing, Innovation, Technology (IMIT) Development Grants Ivanhoe Cambridge shall be required to provide letters of credit equivalent to the total amount of the grant for office building 1, less the grant amount that the development may otherwise be eligible to receive if it qualifies under the Corporate Headquarters eligibility category in accordance with the terms and conditions as generally described in the report (June 15, 2016) from the General Manager, Economic Development and Culture, with respect to the financial security to ensure the Transformative Project status is maintained through the construction of the office building 2.

3.  City Council approve the provision of Imagination, Manufacturing, Innovation, Technology (IMIT) grants for the Corporate Headquarters Gross Floor Area (GFA) in office building 1 based on the existing IMIT Program definitions and criteria, in the event that either:

- Council does not approve this application as a Transformative Project; or

- the project is not completed in accordance with recommendations 1 and 2.

4.  City Council authorize the General Manager of Economic Development and Culture to negotiate and execute a Financial Incentive Agreement in a form satisfactory to the City Solicitor.

This report presents an application made to the Imagination, Manufacturing, Innovation and Technology (IMIT) Property Tax Incentive Program submitted by Ivanhoe Cambridge and Metrolinx (as current landowner) for their proposed development at 45 and 141 Bay Street. The application is being made under the Transformative Project eligibility criteria, for which Council approval is required.

This development, for two large office towers, if approved, will bring the largest amount of new Class A office space from a single development into the Toronto market since the completion of Brookfield Place (Bay Wellington Tower and TD Canada Trust Tower) 25 years ago. The office buildings will support approximately 12,500 new or retained jobs. This project brings a unique privately owned publicly accessible space (POPS) that will span the railway corridor connecting the Financial District to the Waterfront area. It will also incorporate the new Metrolinx Bus Terminal and other transit infrastructure as part of the larger Union Station intermodal transit hub. This development has an estimated construction value of $1 billion and meets the eligibility criteria for Transformative Project.

If City Council approves this project for the IMIT program, the City will be committed to make Tax Increment Equivalent Grant (TIEG) payments to Ivanhoe Cambridge estimated at $130 million at current rates. The applicant is also applying under the Brownfield Remediation Tax Assistance program, which would entitle it to a further $10 million in property tax cancellation.  Approved applications under IMIT are also entitled to an exemption from Development Charges, estimated at $1.2 million for this project, bringing the total value of the incentives for the Ivanhoe Cambridge to approximately $142 million.  The new municipal property tax the City will receive is $217 million over the term of the incentive netting $75 million to the City and $22 million per year thereafter. The two properties currently pay approximately $1.35 million in municipal taxes, which will continue to be paid throughout the grant period, since the grant is based on the 'increment' above the base municipal taxes.

Due to the complexity of the application and financial implications for the City, an independent third party review was requested to provide a detailed analysis of the transformative nature of this development and the need for financial incentives. The completed review by Hemson Consulting Ltd is attached as Appendix A of this report. Hemson concluded that the project meets the Transformative Project criteria, and that without the IMIT grant Ivanhoe Cambridge is unlikely to proceed with the development as currently proposed. Hemson also indicated that if the development does not proceed as currently proposed, it is improbable that nothing would be built on the portion of the site that is currently occupied by a parking lot. Ivanhoe Cambridge has advised that if the Transformative Project application is not approved it is prepared to switch to a more standard office development with a smaller building that lacks the high quality and substantial public amenities proposed in the current design.

The Economic Development Committee recommends that:

1.  City Council approve $1,400,000 in 2016 and 2017 funding allocations to the special events listed below, to be funded by the Major Special Events Reserve Fund, subject to the satisfactory completion of a structured application and a signed agreement that includes reporting requirements.

2.  City Council provide funding for significant special events in 2016 through approval of a budget adjustment to increase to the 2016 Economic Development and Culture Operating Budget by $600,000 gross, zero net, funded from the Major Special Event Reserve Fund, through additional funding provided from the 2015 year-end surplus.

3.  City Council direct the General Manager of Economic Development and Culture to include the $800,000 detailed in Recommendation 1 for the four 2017 special events listed, in the program's 2017 budget submission for consideration during the 2017 budget process.

4.  City Council direct the General Manager, Economic Development and Culture, to develop a formal granting process to support significant special events taking place in 2018 and future years for consideration during the 2017 budget process.

5.  City Council direct the General Manager, Economic Development and Culture, to report to Economic Development Committee in 2017 on the outcomes of the significant special events that received funding from the Major Special Events Reserve Fund.

At its meeting of May 17, 2016, the Economic Development Committee directed the General Manager, Economic Development and Culture, to assess a list of current unsolicited requests for support from significant special events using criteria proposed and since adopted by Council in the City of Toronto Bidding and Hosting Strategy for Significant Special Events, and report back to the Committee in June. This report presents the results of the assessment.

In recent months, the City has received an unprecedented number of unsolicited requests for funding from significant special events. While the Major Special Events Reserve Fund (MSERF) was established by Council in part for the purpose of funding such events, no formal intake process exists to receive, evaluate, and recommend funding for special events. This report recommends that such a process be put in place for future years.

In the absence of a formal intake process, staff have, as directed by the Economic Development Committee, undertaken an evaluation of the unsolicited requests using the evaluation criteria proposed by the Mayor's Advisory Panel on International Hosting Opportunities, and approved by Council as part of the City of Toronto Bidding and Hosting Strategy for Significant Special Events.

This report recommends allocating $1,400,000 to support seven significant special events in 2016 and 2017, with funding to be drawn from the Major Special Events Reserve Fund. Funding is recommended for events that have demonstrated potential to advance key City-building priorities, create lasting and meaningful legacies and benefits for Torontonians, and responsibly manage costs, resources, and risks.

The awarding of funding is contingent on the replenishment of the Major Special Events Reserve Fund, which was initially created to fund TORONTO 2015 Pan American / Parapan American Games Host City Showcase Program, and thereafter to provide funding and budget stabilization for the non-recurring expenses associated with bidding for, providing municipal services for, or delivering enhanced City programming for major special events. The Operating Variance Report for the Year Ended December 31, 2015 includes a provision for $2,500,000 of the 2015 Operating Budget surplus to replenish this Reserve Fund. The Operating Variance Report will be considered by City Council at the same time as this report on July 12-13, 2016.

The Economic Development Committee recommends that:

1.  City Council remove the following appointees from the Bayview Leaside Business Improvement Area Board of Management:

Stephen Betts

Simon Hanlon

David Illiatovitch-Owen

2.  City Council direct that Schedule A of the Municipal Code Chapter 19, Business Improvement Areas, be amended to reflect the number of Board members for the Bayview Leaside BIA as six (6).

The purpose of this report is to recommend that City Council remove members from the Bayview Leaside Business Improvement Area (BIA) Board of Management.

The Economic Development Committee recommends that:

1.  City Council designate the reduced area described by Attachment 1 to the report (April 20, 2016) from the General Manager, Economic Development and Culture, as the College West Business Improvement Area (BIA), under Chapter 19 of the City of Toronto Municipal Code;

2.  City Council designate the expanded area described by Attachment 1 to the report (April 20, 2016) from the General Manager, Economic Development and Culture, as the College Promenade Business Improvement Area (BIA), under Chapter 19 of the City of Toronto Municipal Code;

3.  City Council direct the City Solicitor to submit by-laws to designate the areas described in Attachment 1 to the report (April 20, 2016) from the General Manager, Economic Development and Culture, as the College West Business Improvement Area (BIA) and the College Promenade BIA; and

4.  City Council approve those amendments necessary to Schedule "A" of the City of Toronto Municipal Code, Chapter 19, Business Improvement Areas, to include the reduced College West Business Improvement Area (BIA), and the expanded College Promenade BIA.

The purpose of this report is to recommend that the College West Business Improvement Area (BIA) boundary be reduced and that the College Promenade BIA boundary be expanded as described in Attachment No. 1.  The College Promenade BIA has streetscape improvements scheduled for 2016 and, rather than terminating improvements mid-block, it proposes to extend its improvements to the full block, which leads into the College West BIA boundary.  The reduction and expansion area is made up of one property, located at the current shared boundaries of both BIAs.

The Boards of Management of both BIAs have agreed to the amendments to their respective boundaries.

The Economic Development Committee recommends that:

1.  City Council receive the report (June 14, 2016) from the General Manager, Economic Development and Culture for information.

The attached Toronto Economic Bulletin summarizes the most recent data available for key economic indicators benchmarking the city's economic performance.

The following gave a presentation to the Government Management Committee on Amendments to the Purchasing By-law and the Procurement Process Policy:

-  the Treasurer; and

-  the Director, Purchasing and Materials Management.