Agenda

• O Canada
• Moment of Silence
• Declarations of Interest under the Municipal Conflict of Interest Act

City Council will confirm the Minutes from the regular meeting held on June 6, 7 and 8, 2012.

Members of Council may file petitions.

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

City Council will review the Order Paper.

The Toronto and East York Community Council requested the Toronto Preservation Board to provide its comments directly to City Council for its meeting on June 6 and 7, 2012, with respect to the report (May 10, 2012) from the Director, Urban Design, City Planning Division, headed "Intention to Designate Under Part IV, Section 29 of the Ontario Heritage Act and Authority to Enter into a Heritage Easement Agreement - 1115 Queen Street West."

The Executive Committee recommends that:

1.         City Council authorize the General Manager of Parks, Forestry and Recreation to accept donations from the Parks and Trees Foundation of funds raised by the Riverdale Farm Coalition through activities outlined in the attached business plan in the report (May 25, 2012) from the General Manager, Parks, Forestry and Recreation, for the purposes of first offsetting the operating costs of Riverdale Farm before any funds are allocated for program expansion or capital improvements.

2.         City Council request the General Manager of Parks, Forestry and Recreation to work with the Riverdale Farm Coalition to develop a terms of reference for the Riverdale Farm Stewardship Group, including defining roles and responsibilities for the City, organizations, and residents.

3.         City Council support and encourage the Riverdale Farm Coalition's efforts to raise funds in support of the ongoing operation of the Farm, such as permitting the use of the Farm for fundraising events.

4.         City Council direct Parks, Forestry and Recreation staff to include in the 2013 budget process any expected net operating budget impacts as a result of the fundraising activities.

This report highlights the work completed by the Riverdale Farm Coalition towards the development of alternative sources of funding and revenue for operation of the Farm, as requested by Council on September 26, 2011. Since that time, the Coalition has conducted extensive research and community consultations, including a community survey, town hall meeting and partner roundtable discussion, towards putting forward a business plan that outlines an alternative vision and funding model for the Farm. 

The Riverdale Farm Coalition reported back to the Parks, Forestry and Recreation Division with a business plan summarizing numerous opportunities for revenue generation, including fundraising, sponsorships, and on-site revenue opportunities (Attachment 1).  In the context of the business plan, the Coalition also envisions the Farm as a centre of excellence in food and urban agriculture, a "rural embassy" in the City, a catalyst for social enterprise operations and venue for diverse programming. 

In order to move forward with raising funds to offset the operating costs of Riverdale Farm as per the ideas presented in the Riverdale Farm Business Plan report, the Parks, Forestry and Recreation Division is recommending that City Council authorize the acceptance of donations from the Toronto Parks and Trees Foundation, request staff to develop a terms of reference for the new Riverdale Farm Stewardship Group, and support the community's fundraising efforts.

The Executive Committee recommends that:

1.         City Council authorize the Mayor, the Deputy City Manager and Chief Financial Officer and the City Clerk to amend the Canada-Toronto-TTC Canada Strategic Infrastructure Fund Agreement between the City of Toronto, the TTC and Her Majesty in Right of Canada in accordance with the terms described in the report (May 24, 2012) from the Deputy City Manager and Chief Financial Officer.

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

This report seeks Council approval to amend the Canada Strategic Infrastructure Fund (CSIF) agreement between the City, TTC and the Federal Government. The amendment to the agreement will extend the project completion date from March 31, 2012 to March 31, 2015 as well as the agreement termination date from March 31, 2013 to March 31, 2016. The amendment also reduces the maximum eligible claim amount from $350 million to $303.5 million due to the change in proponency of the PRESTO project from the TTC to Metrolinx.

The Executive Committee recommends that:

1.         City Council authorize the levy and collection of amounts for the 2012 taxation year on hospitals, colleges and universities 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.

3.         City Council grant authority for the introduction of the necessary bill in Council to levy amounts for the 2012 taxation year on hospitals, colleges and universities and correctional facilities.

This report requests authority to adopt a by-law to levy amounts for the 2012 taxation year for public hospitals, universities and colleges, and correctional facilities (the “institutions”), totalling approximately $15.9 million (annual “Heads and Beds” levy).

This report seeks Council authority for the introduction of the by-law necessary to levy and collect taxes for the 2012 taxation year on railway roadways and rights of way and on land used as transmission or distribution corridors owned by power utilities, totalling approximately $7.5 million in taxation revenue, of which the municipal share is $6.7 million and the provincial education share is $0.8 million. 

The Executive Committee recommends that:

1.         City Council approve the introduction of sports field permit fees for children and youth organizations in 2013 at the following rates (including HST):

a.         $6/hour for A fields;

b.         $4/hour for B fields;

c.         $2/hour for C fields; and

d.         $2/hour for dry pads.

2.         City Council request the General Manager of Parks, Forestry and Recreation to undertake the steps outlined in the report (May 29, 2012) from the General Manager, Parks, Forestry and Recreation, to strengthen the City's partnership with sports organizations and to improve the quality of sports fields and report back to Council after the 2013 season. 

3.         City Council direct that the permit fees for 2014 be set through the User Fee Review process, and that any increases to the 2013 fees beyond the annual inflationary increases be phased in over time, with appropriate consultation and in a manner that allows the sports groups to adjust their fees accordingly. 

4.         City Council request the General Manager of Parks, Forestry, and Recreation to explore the option of creating a new fee for lit fields and facilities to recover a portion of the electricity costs for each lit field and report back through the User Fee Review process.

This report responds to Council's direction regarding establishing a fee structure for children and youth organizations permitting outdoor sports facilities. Additionally, this report provides a summary of the consultations held with sports organizations and the results of a comparison of Toronto's sports fields, fees, and policies with those in other municipalities.

Among other things, this report recommends the introduction of new, lower fees for the 2013 season. These new fees have been recommended at a lower rate than those introduced as part of the 2012 budget to respond to the concerns raised by many organizations about keeping children and youth sports affordable. These lower rates also acknowledge that there is work to be done to improve the quality of sports fields.

Charging a nominal fee complies with the Council-adopted User Fee Policy, which recommends a portion of the cost of a service be recovered by fees where the benefits accrue to an identifiable group and where it is possible to prevent someone from accessing the service. There has historically been a 100% subsidy for sports field permit fees for children and youth groups. This report recommends bringing that subsidy down from 100% to a level more in-line with the level of subsidy provided to children and youth groups who permit other facilities.

Charging fees has other benefits for the maintenance and utilization of sports fields as well. For example, it encourages permit holders to use these facilities efficiently, freeing up some time for other groups looking to use fields. The revenue generated from permit fees will help support the improved quality of the fields, which is a major benefit to the permit holders. Further, the City will benefit from the improved utilization data that will result when permits more accurately reflect the activity on the field.

This report also outlines several steps that will improve and strengthen the partnership between Parks, Forestry and Recreation and sports organizations who provide a valuable opportunity for children and youth to stay active and receive the benefit of sport, along with volunteering their time and resources to maintain City facilities. Parks, Forestry and Recreation will improve communication with these groups, and work with them as partners to develop a new field classification system, a new policy for dealing inclement weather, and to improve the quality of sports fields.

This report outlines changes in City policies that have been identified by Councillors as necessary for the effective and efficient operation of their offices during consultations on the Councillor Expense Policy. An annotated Councillor Expense Policy incorporating these proposed policy changes and clarifying some expenses is included for reference. The report also includes a recommended separate Policy on Use of City Resources during an Election, so that policies guiding staff action are segregated from the provisions guiding Councillors in the Councillor Expense Policy. 

The City Manager reports regularly to Council on divisional delivery of programs and services to Toronto's diverse population. It is the priority of the City to provide accessible and equitable programs and services to residents and employers. Addressing equity, diversity and human rights and embedding these principles and practices in program and service delivery helps the City reach its goal of being a welcoming, inclusive and prosperous city.  Furthermore, it helps the City achieve Customer Service Excellence and meet legislative and policy obligations.

The 2011 Progress Report on Equity, Diversity and Human Rights Achievements takes a new approach to tracking the programs and services that are delivered to Toronto's residents and the Toronto Public Service.  In the first year of this new approach, we have collected baseline data from the program and service delivery.  The baseline data will serve as reference points for assessing the results and effectiveness of the programs and services over a period of time. 

The baseline data in this report focus on two of the City's priority areas: 1) City as an employer and 2) City as a provider of customer service.  The report also includes divisions’ leading examples and good practices in equity, diversity and human rights that have had a positive impact on diverse residents and clients.  

In addition, this report informs Council on the future implementation of equity, diversity and human rights initiatives in the City.  The Office of Equity, Diversity and Human Rights (EDHR) will: 1) develop an integrated Corporate Equity, Diversity and Human Rights Framework to assist divisions in planning and delivering equity, diversity and human rights services to employees and residents;  2) implement Employment Equity programs to make the Toronto Public Service a diversity champion.

The Office of EDHR is a resource to the Toronto Public Service.  It performs this role by:

1. building trusting and collaborative relationships with City divisions
2. supporting the City in meeting its legislative and policy obligations in access, equity and human rights
3. supporting all employees in demonstrating their commitment to equity, diversity and human rights
4. driving and shaping innovative organizational change at the Toronto Public Service
5. promoting a culture of sharing, learning and responsiveness
6. creating the tools to embed equity, diversity and human rights into all functions of the Toronto Public Service.

The objectives of a Corporate Equity, Diversity and Human Rights Framework are twofold: to enable divisions to embed equity, diversity and human rights principles and practices and to strengthen their capacity to assess the outcomes of their equity, diversity and human rights initiatives.   This framework will include an Equity and Inclusion Lens, an improved and expanded version of the Equity Lens, and Equity Outcome Assessment tools. 

The Office of EDHR will also continue to build on the successes of the Employment Equity programs by: working with unions to build support for the workforce survey among members; continuing successful programs and activities that support the goals of the City’s equity and diversity goals; launching new initiatives based on needs identified by the Workforce Survey, employee feedback and input from divisions; and starting in 2012, holding an annual workforce survey with a specific emphasis on low response divisions.

This report is to outline an approach to identify the barriers to civic participation for Aboriginal Peoples and to find ways to increase the representation of Aboriginal Peoples on the City of Toronto's Agencies and Corporations.

This report is an update on the process undertaken by Organization Development and Learning (OD&L) in consultation with the Office of Equity, Diversity and Human Rights (EDHR) to create a strategy to provide education opportunities for the Toronto Public Service regarding the culture and history of Aboriginal peoples living in Toronto, and the impact of their historical experience on their lives today. 

The strategy will guide the plan needed to procure, develop and implement education opportunities aligned with the City's Statement of Commitment as well as the context of each division.  The strategy includes consultations with Aboriginal Elders, Aboriginal partners, and the Toronto Aboriginal Affairs Advisory Committee.

This report advises Council of the result 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, Transsexual and Two Spirited 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 reported separately to City Council, as a supplementary 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 recipients for their contributions toward improving the status of women in Toronto:

Carolyn Egan – For over forty years, Carolyn Egan has made a tremendous contribution to improving the quality of life for women in Toronto. As an ardent trade unionist, feminist, human rights activist and political activist, the scope and depth of her leadership in community engagement and social movement building has been extensive and extraordinary. She is president of the community board of the Immigrant Women’s Health Centre in Toronto, past president of Women in Transition, a women’s shelter, and past vice-president of the YWCA of Metropolitan Toronto. She has been central to organizing Toronto’s annual International Women’s Day march since the first march was organized in 1978. Her vision and leadership has sustained an annual vibrant IWD March with diverse community and labour contingents.

Ceta Ramkhalawansingh - Though Ceta may be known for her professional contributions to access, equity and human rights at Toronto City Hall where she worked from 1981 to retirement in 2010, her volunteer advocacy and community service contributions over the past forty years are unparalleled in their range and effectiveness. Currently, she is the National Chair, The Word On The Street Canada; President, LEARNXS Foundation and board member Yee Hong Centre for Geriatric Care. At the University of Toronto, she is a Principal’s Appointee, Innis College Council and represents New College Alumni on the College of Electors. She is a member of the Advisory Committee, Community Worker Program at George Brown College, a member of Advisory Panel for the Investing in Diversity Scholarships program at Scadding Court, and a member of the jury for the community heritage award of Heritage Toronto. Ceta is also the honorary chair of the Grange Community Association for her work on revitalizing the Grange Park.

The Constance E. Hamilton Award will be presented during the City’s Annual Human Rights Awards Ceremony on Wednesday, December 5^th 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, Transsexual and Two Spirited Issues and the William P. Hubbard Race Relations Award.

The Executive Committee submits the item to Council without recommendation.

The purpose of this report is to provide recommendations regarding proposed changes to the benefits plan for non-union employees, accountability officers and elected officials.  The proposed changes outlined in this report arise from staff's review of the benefits plan following the recently concluded collective bargaining with TCEU, Local 416 and CUPE, Local 79 and will result in an estimated savings of -5% in the non-union benefit plan.

The City continues to be committed to providing a fair and comprehensive benefits plan to its employees which is responsible to the taxpayers of Toronto.  The recommended changes in this report assists the City in controlling the rising costs associated with these plans.  The changes focus on the introduction of cost-effective ways of delivering benefits which includes provisions to encourage employees to make smarter healthcare consumerism choices. 

Letter from the Employee and Labour Relations Committee forwarding its recommendations of June 5, 2012, to the Executive Committee regarding Non-union Employees, Accountability Officers and Elected Officials Benefits Plan.

The Executive Committee submits the item to Council without recommendation.

The purpose of this report is to seek approval from City Council to amend the 2012 Approved Operating Budget for the City Manager's Office, Executive Management Division, and to accept project funding from the Ontario Power Authority's Energy Efficiency Service Providers Initiative for the Tower Renewal Office.

The Tower Renewal Office has developed and is implementing a system for apartment building and community improvements across the City. Tower Renewal has been selected by the Ontario Power Authority (OPA) to receive funding for an energy efficiency improvement program targeted to apartment buildings. OPA funding will be in the amount of approximately $500,000.00 for the duration of the program which is scheduled to operate from 2012 to the end of 2014.

Funds will be applied to provide education, outreach and technical expertise to support apartment buildings in undertaking improvement actions.  In particular, the program will leverage private sector investments to expedite the implementation of energy efficiency projects in apartment buildings. This program will compliment the implementation of the Tower Renewal program to improve the state of the City's apartment buildings and their communities.

The Executive Committee recommends that:

1.         City Council adjust the Toronto Public Health 2012 Approved Operating Budget as follows:

             a.        A reduction of $1,129.0 thousand gross and $0.0 net to reflect confirmed funding from various Provincial ministries and external sources.

Government initiatives that enable low- and moderate-income people to become home owners are successful and should continue, according to a client satisfaction survey of Torontonians who received down payment assistance to help buy their home.

The first-of-its-kind survey was conducted by the City's Affordable Housing Office in the fall of 2011. Some 236 new homeowners from 15 Toronto wards completed the 31-question survey both online or by phone – a 40 per cent completion rate. The resulting report, "Making Homeownership Happen – Success through Partnerships", was released March 12, 2012 by Councillor Ana Bailão (Ward 18 Davenport), Chair of the Affordable Housing Committee, and provides valuable information to help the City and its non-profit partners better deliver home ownership assistance. The study and related news release are attached to this report.

Through funding programs and agreements with the federal and provincial governments the City works in partnership with local non-profit groups to support their affordable home ownership developments. Support for new affordable ownership housing is a priority of the "Housing Opportunities Toronto Affordable Housing Action Plan 2010-2020". The results of the survey will inform future updates of the Action Plan, as required under the Provincial Housing Services Act, 2011. The survey results will also inform the City's Official Plan review, currently under way.

The survey was distributed to people who purchased homes developed by the following six non-profit organizations: Habitat for Humanity Toronto, Home Ownership Alternatives Non Profit Corporation, Toronto Artscape, the Miziwe Biik Aboriginal Development Corporation, the Women's Religious Project, and Toronto Community Housing.

This report provides an update on City Divisions' review and early implementation opportunities of the Private Sector Housing Roundtable report, Housing Makes Economic Sense. This staff report to Executive Committee was requested by the Affordable Housing Committee at its meeting on May 28, 2012.

The report recommends that the Director, Affordable Housing Office, continue to work with City Divisions on the review and implementation of the report, Housing Makes Economic Sense and report back to the Affordable Housing Committee on progress achieved by September 2013.

As a result of an innovative private/non-profit partnership between the developer Great Gulf Homes and the non-profit Kehilla Residential Programme, four units of affordable rental housing are being created in a new condominium under construction at 430 King Street West.

At its meeting on March 20, 2012, Toronto and East York Community Council directed staff to commence a City-initiated Official Plan Amendment (OPA) to allow four (4) homes at 430 King Street West to be owned by the Kehilla Residential Programme (Kehilla) and rented to tenants as affordable housing. Following a Preliminary Report on the OPA at April 17, 2012 Community Council, staff held a community consultation meeting on the evening of May 1, 2012. The final OPA report is anticipated to be before Community Council on June 13, 2012, and City Council at the July 11 and 12, 2012 meeting, the same meeting at which this Report is proposed to be considered.

Consistent with the OPA process, this report recommends Council take several actions, including enacting a site specific by-law to exempt the four (4) units at 430 King Street West from the existing provisions of the Municipal Housing Facility by-law and a by-law to provide an exemption for the four (4) units from property taxation for municipal and school purposes with the intent of providing affordable housing.

Recently, restrictions on public fishing have been enacted along portions of Toronto's waterfront, with fishing restricted to areas designated by posted signage.  This is counter to existing policy permitting urban fishing in the City of Toronto provided there is no signage prohibiting fishing.

Fishing is an activity enjoyed by thousands of Torontonians every year. The right to fish can be reasonably restricted for purposes of safety at particular locations, but a patchwork of new enforcement, apparently unrelated to public safety, poses the risk that the lakeshore will be effectively taken from the public realm, enjoyed by all, to a private preserve. As a lakefront City Toronto needs to protect the right of residents to fish in Lake Ontario from public property.

(Submitted to City Council on April 10 and 11, 2012 as MM22.11)

The Executive Committee recommends that:

1.         City Council request the City Manager to engage and participate with Metrolinx in establishing a working group of appropriate officials representing the City of Toronto, Greater Golden Horseshoe municipalities, the Ontario Ministry of Transportation, the Ontario Ministry of Finance, the Ontario Ministry of Municipal Affairs and Housing, and any other relevant bodies to provide input into the preparation of a funding strategy for the Metrolinx regional transit plan.

To fund public transportation and relieve traffic congestion for Toronto and the Greater Golden Horseshoe (GGH), it is imperative to move forward with a regional funding strategy.

Our transit needs are too urgent to continue relying on one-time provincial funding. Gridlock has become so severe that the status quo, traffic congestion that costs the GGH $6 billion a year and which has an adverse impact on our residents' quality of life, is unacceptable.

Metrolinx is currently preparing a funding strategy for their regional transit plan, The Big Move. There are a variety of funding mechanisms that may be considered including the feasibility of implementing road tolls or a regional sales tax dedicated to transit priorities.

This motion requests the City Manager to work with Metrolinx to explore a variety of regional funding mechanisms with officials from across the GGH to achieve these aims. Any funding initiative should be done on a regional basis to mitigate unintended consequences including job loss and consumer avoidance.

Toronto and GGH residents want a faster, reliable and more accessible public transportation system.

(Submitted to City Council on May 8 and 9, 2012 as MM23.4)

The Executive Committee recommends that:

1.         City Council request the City Manager to correspond with the Ontario Ministry of Finance to request that the Province review their donation tax credit rates for the purpose of raising the provincial tax credit to 15% for all donations including those under $200.00.

2.         City Council request the City Manager to further request that the Ontario Ministry of Finance review the provincial tax credits given by other Canadian provinces to ensure that the Ontario is offering equal incentives to Ontario residents.

In recent months the of the City of Toronto's financial department has been requesting that City Council direct up to 75% of surplus funds to the payment of streetcars previously ordered by the Toronto Transit Commission.  It is prudent that the Executive Committee understand the cost of this agreement and the consequences of our payment schedule.  Moreover, the Province of Ontario has agreed to make a sizeable contribution to the cost of this order, the status of which is unclear.  It is also important for Councillors to understand if this is the most expensive debt the city is carrying and whether penalties and interest charges are imminent.  Finally, the TTC should be advising City Council on its efforts to dispose of non-performing real estate assets such that it can more responsibly manage its own debt.

This report recommends the actions necessary to comply with the requirements of the Business Corporations Act (Ontario) for holding the 2011 Annual General Meeting of the shareholder of Build Toronto Inc. including receipt of Audited Financial Statements and appointment of the auditor.  This report also transmits documents from Build Toronto Inc. to City Council disclosing the compensation of executive officers employed by the corporation in 2011. 

In 2009 City Council approved a report entitled “A Policy Framework for Toronto’s Accountability Officers”.  The Policy Framework supports the appropriate balance of independence in the Officers’ decision making processes and accountability to Council for the management of their offices, and their performance in fulfilling their mandates.

The Policy Framework requires that “Consistent with the current audit requirement for the Auditor General, the accountability officers will undergo an annual compliance audit by an external auditor, appointed by and reporting to City Council.  The annual compliance audit will provide Council assurance the officers are carrying out their operations within delegated authorities and in compliance with applicable City by-laws and policies.”

The independent annual compliance audit of the Auditor General’s Office by the external auditor Hilborn Ellis Grant LLP is anticipated to be submitted to the July 3, 2012 meeting of the Audit Committee.

Government Auditing Standards state that “Audit organizations performing audits and attestation engagements in accordance with Generally Accepted Government Auditing Standards (GAGAS) must have an external peer review performed by reviewers independent of the audit organization being reviewed at least once every 3 years.”  The purpose of this report is to provide the Audit Committee with information regarding the Auditor General’s proposed external peer review.

The Audit Committee recommends that:

1.         City Council approve the 2011 Consolidated Financial Statements as attached in Appendix A to the report (June 18, 2012) from the Deputy City Manager and Chief Financial Officer and the Treasurer.

The purpose of this report is to present the City of Toronto's Consolidated Financial Statements for the year ended December 31, 2011 to Council for approval and provide highlights of the City’s 2011 financial performance and financial condition as of December 31, 2011.

The following agencies and corporations have submitted 2011 Financial Statements and related documents to the Audit Committee for consideration:

- Exhibition Place

- Toronto Public Library

- Toronto Transit Commission

- Toronto Zoo.

Financial Statements for the Toronto Public Library for the year ended December 31, 2012.

Financial Statements for the Toronto Zoo for the year ended December 31, 2011.

This report provides information regarding the implementation status of audit recommendations contained in various reports issued by the Auditor General to City divisions.  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 Audit Committee.

Management has made progress on implementing outstanding audit recommendations.  Further, we noted that management continues to make progress on many recommendations not yet fully implemented.

Since July 1, 2006 the Auditor General has issued various reports containing a total of 466 recommendations.  Since that time eight of these recommendations have been identified by the Auditor General as no longer relevant.  These recommendations are no longer relevant as reorganizations and changes in business practices and service levels have rendered them no longer applicable.  Consequently, 458 of the 466 recommendations continue to have relevance.

The results of our review indicate management has fully implemented 339 or 74 per cent of the recommendations made by the Auditor General during the five year period from July 1, 2006 to June 30, 2011. 

From a historical perspective, the Auditor General has issued 1,188 recommendations since January 1, 1999.  Management has fully implemented 89 per cent or 1,059 of the 1,188 recommendations included in all audit reports issued since January 1, 1999.  Continued efforts to implement outstanding recommendations will provide additional benefit to the City through cost savings, additional revenue and enhanced service delivery.

This report provides information regarding the implementation status of audit recommendations contained in various reports issued by the Auditor General to the City’s agencies, boards, commissions and corporations.  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 Audit Committee.

Since July 1, 2006 the Auditor General has issued various reports containing a total of 190 recommendations.  Since that time four of these recommendations have been identified by the Auditor General as no longer relevant.  These recommendations are no longer relevant as reorganizations and changes in business practices and service levels have rendered them no longer applicable.  Consequently, 186 of the 190 recommendations continue to have relevance.

The results of our review indicate that on a combined basis, City agencies, boards, commissions and corporations have implemented 73 per cent or 136 of the 186 recommendations made by the Auditor General from July 1, 2006 to June 30, 2011.

Continued efforts to implement outstanding recommendations will provide additional benefit to the City through cost savings, additional revenue and enhanced service delivery.

This report provides information regarding the implementation status of recommendations made by the Auditor General’s Forensic Unit in the context of special reviews, which were publicly reported through Audit Committee, as well as those made in the annual Fraud and Waste Hotline reports.

On an annual basis, the Auditor General reviews information provided by management to determine the accuracy of management assertions related to each recommendation.  The results of this review are communicated to Council through the Audit Committee.

Since January 2007, the Auditor General has issued various reports related to its operation of the City’s Fraud and Waste Hotline Program. Since that time a total of twelve recommendations were reported publicly.

The results of our review indicate management has not fully implemented four recommendations made in reports by the Auditor General from January 1, 2007 to December 31, 2011.

Continued efforts to implement outstanding recommendations will provide additional benefit to the City through cost savings, additional revenue and enhanced service delivery.

The Audit Committee recommends that:

1.         City Council request the City Manager to review the current management of all City-wide receivables.  Such a process should be a part of the ongoing shared service review.  The review should include an evaluation of centralizing the collection efforts of all outstanding receivables.

2.         City Council direct the Treasurer to review and update accounts receivable policies and procedures where appropriate.  A directive should also be issued to all staff responsible for the collection of receivables that all such policies and procedures should be complied with.

3.         City Council request the Treasurer to review current SAP management reports pertaining to the management of receivables.  The reports should contain relevant and current information and include performance management information.

4.         City Council request the Treasurer to implement an accounts receivable process that provides for timely management review of collection activity and disposition of accounts receivable.  Such process to include appropriate documentation and approval requirements.

5.         City Council request the Treasurer to periodically review inactive customer accounts with small balances where collection efforts have been exhausted and such accounts be written off in accordance with City bylaws.

6.         City Council request the Treasurer to clarify and document the roles and responsibilities of supervisory staff and accounts receivable staff to ensure due diligence in collection activities.  Staff roles and responsibilities should include collection activity, supervisory review and documentation requirements. 

7.         City Council request the Treasurer to assess the feasibility of using the City SAP Financial System to the fullest extent in tracking actions taken on customer accounts sent to Legal Services and collection agencies.

8.         City Council request the Treasurer take steps to ensure the proper separation of duties by limiting access to users of the SAP accounts receivable functions.  In addition, user access should be reviewed periodically to ensure only those with a current and regular need are authorized to use the system.

The Auditor General’s 2011 Work Plan included a review of the management and administration of City divisional accounts receivable.  The objective of this review was to assess divisional practices for billing and collecting service related revenue owed the City for services provided to customers.  Examples of divisional service related accounts receivable include recreational program registration fees, park facility rentals, rent for property administered by Facilities Management and street and road allowance fees collected by Transportation Services.  The audit did not include the management of property tax and water billing receivables.

The audit results are presented in the attached report entitled “Review of The Management of the City’s Divisional Accounts Receivable.”

This report contains eight recommendations along with a management response to each of the recommendations.  The implementation of these recommendations will improve accounts receivable collection efforts, operational efficiencies and internal controls.

The Audit Committee recommends that:

1.         City Council request the Director, Energy and Strategic Initiatives to address the deficiencies relating to the energy management system with the objective of:

a.         Ensuring that energy savings are appropriately quantified;

b.         Ensuring that Phase IV performance guarantees have been met and appropriate adjustments, if any, are made in payment to the Contractor.

2.         City Council request the Director, Energy and Strategic Initiatives to report to Council on the financial results of the program.

3.         City Council request the Director, Energy and Strategic Initiatives, to provide appropriate operations staff with detailed facility by facility reporting of energy savings achieved as a result of the Energy Retrofit Program.  Where such savings have not met objectives, appropriate remedial action, where feasible, be taken to maximize energy savings.

4.         City Council request  the Deputy City Manager and Chief Financial Officer, in consultation with the Director, Energy and Strategic Initiatives and the General Manager, Parks, Forestry and Recreation to report to Council on remedial steps that can be taken to alleviate unintended negative financial impacts of the Energy Retrofit Program on individual recreational facilities.

5.         City Council request the Director, Energy and Strategic Initiatives, in consultation with the General Manager, Parks, Forestry and Recreation to review alternatives and implement effective support and maintenance of building automation systems.  The alternatives should include:

a.         Centralized monitoring of building automation systems;

b.         Establishing in house building automation system expertise;

c.         Additional and ongoing training for staff responsible for monitoring and maintaining building automation systems; and

d.         Reviewing equipment not currently connected to each building automation system to determine if it would be advantageous to control the equipment through the building automation system.

6.         City Council request the Director, Energy and Strategic Initiatives, in consultation with the General Manager, Parks, Forestry and Recreation to track costs specifically attributable to support and maintenance of building automation systems, where feasible, and include this information in any analysis of the net benefits achieved.

7.         City Council request the Director, Energy and Strategic Initiatives, in consultation with the General Manager, Parks, Forestry and Recreation, to consult with front line staff on best practices as they relate to Energy Savings Initiatives.

The Auditor General’s 2011 Work Plan included a review of the City’s Energy Retrofit Program.  The Energy Retrofit Program is one step in the City’s Environmental Plan.

The objective of this review was to evaluate the management of the energy retrofit program and processes with respect to the monitoring and measuring of energy savings with a view to confirming that anticipated savings were achieved and the related loans will be repaid as planned.

The Audit Committee recommends that:

1.         City Council request the Director, Pension, Payroll and Employee Benefits, in consultation with the City Solicitor, to formally request the City’s benefit administrator to provide statistical data and reports related to suspected and actual incidents of benefit fraud by employees and/or their dependants that have been investigated by the benefit administrator.

2.         City Council request the Director, Pension, Payroll and Employee Benefits, give consideration to the formal documentation of an annual evaluation of the benefit administrator performance as it relates to prevention, detection and investigation of benefit fraud including fraud related to the receipt of Long Term Disability benefits.

3.         City Council direct that a copy of this Item be forwarded to the Employee and Labour Relations Committee.

The City of Toronto and its Agencies, Boards and Commissions provide employee health care benefits for its employees and retirees, as well as to their spouses and eligible dependants.  Pension, Payroll and Employee Benefits Division (PPEB) is responsible for administering the employee benefit plans including the City’s Long Term Disability program (LTD), for those individuals employed directly by the City (i.e., Toronto Public Service) employees.

The City provides, through its benefit administrator, Manufacturer’s Life Assurance Company (Manulife) extended health care, dental care and long term disability coverage on an Administrative Services Only basis.  The City is self insured which means the City reimburses Manulife for the actual benefit claims paid to employees and pays administrative fees for their processing and adjudication services.

Administration of the City’s Benefit Plans by Manulife includes prevention and detection of fraud and investigation services.

There is a need to improve Manulife’s reporting to the City with respect to incidents of benefit fraud by employees and their dependants, that Manulife has investigated.  Improved reporting by Manulife should include statistical data and reports to enable the City to consider trends and patterns which may indicate fraud or abuse of benefit claims.  This will also enable the City to assess the performance of the benefit administrator, as it relates to its responsibility to prevent, detect and investigate benefit fraud including fraud related to the receipt of LTD benefits.

This report contains two recommendations to improve the reporting and monitoring of benefit fraud, along with a management response to each of the recommendations.

The Auditor General’s 2011 Work Plan included a review of the City’s use of consultants. 

Our 2001 audit, “Selection and Hiring of Professional and Consulting Services Review”, identified issues related to the procuring, recording and reporting on the City’s use of consultants.  

http://www.toronto.ca/audit/2001/selection_prof_consulting_june19_final.pdf 

The objective of this review was to determine if certain issues identified during the 2001 audit had been adequately addressed.  

The Audit Committee recommends that:

1.         City Council request the General Manager, Transportation Services, in consultation with the Director, Purchasing and Materials Management, to implement the corporate model for warehousing and distribution of materials, particularly with respect to the traffic control device inventory.

2.         City Council request the General Manager, Transportation Services, in consultation with the Director, Purchasing and Materials Management, ensure inventory control policies and procedures are documented.

3.         City Council request the General Manager, Transportation Services, in consultation with the Director, Purchasing and Materials Management, to implement effective controls over the inventory of traffic control devices with consideration being given to using the SAP financial information system module currently being used by other City divisions.

4.         City Council request the General Manager, Transportation Services, in consultation with the City Treasurer, to ensure the value of traffic control devices inventory is included in the City's financial records.

5.         City Council request the General Manager, Transportation Services, to ensure physical counts of materials held in inventory are performed on a regular basis and that the information is used to ensure inventory data is accurate and controls are effective.

6.         City Council request the General Manager, Transportation Services, in consultation with the Director, Purchasing and Materials Management, to develop and implement performance indicators and metrics for inventory management.

7.         City Council request the General Manager, Transportation Services, in consultation with the Director, Purchasing and Materials Management, to consider alternative arrangements for the storage of the inventory of traffic control signal devices.

8.         City Council request the Deputy City Manager and Chief Financial Officer to take appropriate action to identify City operations that maintain a significant level of inventory and review those operations to ensure adequate inventory controls are in place such as those identified in City’s warehouse and stores business model as adopted by Council in the Corporate Warehouse/Stores Rationalization Project.

9.         City Council request the City Clerk to forward this report to the City’s major Agencies and Corporations for consideration and appropriate action.

The Auditor General’s Audit Work Plan included a review of the controls implemented by Transportation Services to maintain an inventory of traffic control devices.  The objective of this review was to assess if the Traffic Plant Installation and Maintenance (TPIM) unit, in Transportation Services, maintains effective controls to safeguard the inventory of traffic control devices.

This report contains nine recommendations along with a management response to each of the recommendations.  The implementation of these recommendations will achieve effective inventory control, cost savings and ensure the safekeeping of the City’s $6.7 million worth of parts required to maintain or install electrical traffic signal devices.

The Audit Committee recommends that:

1.         City Council request the Director, Purchasing and Materials Management Division, to review and enhance the existing Purchasing and Materials Management review process such that inaccurate or questionable information on purchase request documents is identified and addressed prior to approval of the purchase request documents.

2.         City Council request the Director, Purchasing and Materials Management Division, to define in all pertinent purchasing policies and procedures that the purchase amount for contract increases and sole-source approvals refers to the gross cost to the City (excluding taxes), not net costs after deductions, refunds, or credits.

3.         City Council request the City Manager, in consultation with the Director, Purchasing and Material Management Division, to take necessary steps to ensure that, where a contract service is not acquired under a fixed price agreement, the unit pricing, labour rates, and estimated labour hours are established prior to commencing the contract services, and the hours of contract services are tracked and documented.

4.         City Council request the Director, Purchasing and Materials Management Division, to take the necessary steps to ensure that divisions comply with the City purchasing policies regarding the timely submission of sole-source purchase requests for approval by the Purchasing and Materials Management Division.

5.         City Council request the City Manager to forward the recommendations contained in the audit report entitled “Procurement of 311 Toronto’s Information Technology System – Lessons for Future Procurement Processes” to the City’s major Agencies and Corporations, for consideration in future procurement processes.

6.         City Council adopt the recommendations contained in Attachment 1 – Confidential Information to this report.

7.         City Council authorize the public release of audit recommendations and management responses contained in confidential Attachment 1 at the discretion of the City Solicitor in consultation with the City Manager.

The Audit Committee recessed its public session and met in closed session to consider confidential information on this Item related to litigation or potential litigation that affects the municipality or local board.

The Auditor General’s 2011 Audit Work Plan included a review of 311 Toronto operations.  An audit report entitled “311 Toronto – Full Potential for Improving Customer Service Has Yet To Be Realized” was presented at the November 23, 2011 Audit Committee meeting.

When the 2011 audit was initiated there was no intention of conducting a review of the 311 procurement process.  However, during the course of the 2011 audit, a number of issues pertaining to the initial procurement of an information technology (IT) solution for the 311 Contact Centre were identified.  Rather than including these concerns in the 2011 report which focused on customer service and operational issues, it was determined that a separate report pertaining exclusively to the procurement process would be appropriate.  The issues pertaining to the procurement process are the subject of this report.

Certain of our audit findings and recommendations are presented in a confidential attachment to this report.  The report sections pertaining to the award of the initial IT contract contain confidential information.  As a result, the relevant report sections and recommendations are presented in confidential Attachment 1 appended to this report.  Our other audit findings and recommendations are detailed in Appendix 1 to this report. 

Our audit findings and recommendations are presented as follows:

Appendix 1 – Audit findings and recommendations excluding those related to the award of the initial IT contract

Appendix 2 – Management responses to audit recommendations contained in Appendix 1

Attachment 1 – Confidential audit findings and recommendations pertaining to the award of the initial IT contract, and management responses to the audit recommendations contained in Attachment 1.

The Audit Committee recommends that:

1.         City Council receive for information, the report (June 15, 2012) from the Auditor General on the status of the financial audits of the City’s Agencies and Corporations for the year ended December 31, 2011.

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, Boards, Commissions and Corporations for the year ended December 31, 2011.

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

The Audit Committee requested PricewaterhouseCoopers, in consultation with the Toronto Parking Authority and the Auditor General, to provide details of the increase in Audit fees related to the Toronto Parking Authority for 2011, and report to the Audit Committee meeting on October 25, 2012.

Audited Financial Statements for The Hummingbird Centre for the Performing Arts (operating as "The Sony Centre for the Performing Arts") for the year ended December 31, 2011.

The Board of Directors of the Hummingbird (Sony) Centre for the Performing Arts, at its meeting on May 3, 2012, expressed concern about the substantial expense incurred by the Sony Centre resulting from the transition from Canadian generally accepted accounting principles to applying the public sector accounting standards (“PSAS”) that apply only to government not-for-profit organizations, and further questioned why the cost of PSAS compliance was not negotiated by the City to be part of the overall contract with the outside auditor.

Financial Statements for The North York Performing Arts Centre Corporation (operating as the Toronto Centre for the Arts) for the year ending December 31, 2011.

Financial Statements for the St. Lawrence Centre for the Arts as at December 31, 2011.

Consolidated Financial Statements for the Toronto Atmospheric Fund for the year ending December 31, 2011.

Financial Statements for the Toronto Parking Authority for the year ended December 31, 2011 and December 31, 2010.

The purpose of this report is to present the 2011 audited financial statements and management letters of forty-one (41) Business Improvement Areas (BIAs) to Audit Committee and City Council for its approval.

The purpose of this report is to present the City of Toronto’s Sinking Fund Financial Statements for the year ended December 31, 2011 to Council for approval and provide highlights of the Sinking Fund's 2011 financial performance and financial condition as of December 31, 2011.

The Audit Committee recommends that:

1.         City Council approve the 2011 Trust Fund Statements attached as Appendix A to the report (June 18, 2012) from the Treasurer.

The purpose of this report is to present the City of Toronto’s Consolidated Trust Funds Financial Statements for the year ended December 31, 2011 to Council for approval and provide highlights of the Trust Funds' 2011 financial performance and financial condition as of December 31, 2011.

The Civic Appointments Committee directed the City Clerk to contact the alternate identified for the Property Standards Committee to determine their interest and eligibility and report directly to Council at its July 11 and 12, 2012 meeting.

The Civic Appointments Committee recessed its public session and met in closed session to consider confidential information on this Item related to personal matters about identifiable individuals.

The Property Standards Committee - Etobicoke York Panel has submitted a letter to the Civic Appointments Committee regarding a Member's attendance.

The Economic Development Committee requested the General Manager of Economic Development and the City Clerk to report directly to City Council on July 11, 2012, on the results of the poll for the Queensway Business Improvement Area, and if the poll results are positive, to bring forward the implementing by-law at the same time.

This report deals with tax appeal applications made to the Treasurer pursuant to sections 323 and 325 of the City of Toronto Act, 2006 (COTA).  Section 323 permits Council to cancel, reduce or refund taxes in cases when, during the year, a property undergoes changes such as when it is destroyed by fire or demolished, becomes exempt from taxation, or is reclassified due to a change in use.  Under section 325 of the COTA, taxpayers can request a cancellation, reduction or refund of taxes when an error in the assessment roll is identified which results in an overcharge.

The legislation requires Council to hold a public meeting where applicants may make a submission in defence of their position.  Council has delegated authority to hold such public meetings to the Government Management Committee.

Staff have mailed Notices of Hearing to affected taxpayers advising of the upcoming hearing before the Government Management Committee. 

The process of redistributing outstanding property taxes from one parcel of land to many newly created properties following a severance or re-development of land is referred to as “the apportionment of taxes”.

This report deals with 48 tax apportionment applications made by the Treasurer or to the Treasurer by an owner of land pursuant to section 322 of the City of Toronto Act, 2006, for the properties listed in Appendices A and B (attached).  

The legislation requires Council to hold a public meeting at which the applicants and / or property owners may express any concerns.  Council has delegated authority to hold such public meetings to the Government Management Committee. 

Staff  have mailed Notices of Hearing to affected taxpayers advising of the upcoming hearing before the Government Management Committee. 

This report identifies those properties where, as a result of staff review and analysis, the Director of Revenue Services has initiated assessment appeals at the Assessment Review Board (ARB) and is now seeking authorization to proceed with those appeals.  The appeals are intended to correct property assessments that have been incorrectly classified, under-valued, or wrongly returned on the 2012 assessment roll.  Staff are also requesting authorization to actively participate in appeals initiated by property owners in order to protect the City’s interests.   

Additionally, this report seeks authority to file appeals for certain federally owned properties with the Federal Dispute Advisory Panel.

This report recommends changes to the parking ticket cancellation guidelines used by Revenue Services staff in assessing whether a parking ticket may be cancelled.  Additionally, this report recommends that authority be delegated to the Treasurer to amend or update the parking ticket cancellation guidelines from time to time as required to incorporate technical amendments such as new by-law references or legislative requirements, new offences, new fines.

This report summarizes the results of a recent review of the City's general contract terms and conditions related to construction contracts.  The new terms and conditions being recommended in this report are expected to attract more competitive bids in an effort to lower the overall cost of capital construction projects.

The Energy Efficiency Office in the Facilities Management Division recently completed a study of energy opportunities at Exhibition Place.  There are existing but separate energy assets on site, and the study concluded that by connecting them, significant financial and operational benefits could be obtained, in part by selling excess energy capacity to a proposed hotel development. 

The developer of the proposed hotel at Exhibition Place, Princes Gates Hotel Limited Partnership, is on a timeline to obtain building permits in 2012, start construction in January 2013, and complete construction of the hotel in time for the 2015 Pan Am games.  The hotel developer is prepared to revise the hotel's design to source heating, cooling and water heating from the proposed distributed energy system, but requires assurance that the project will be supported by the City prior to proceeding with such redesign.

The purpose of this report is to seek authority from Council to enter into an Agreement with the Toronto District School Board (TDSB) to allow the TDSB to construct a soccer field on City-owned parkland to the immediate north of John McCrae Public School. (Appendix “A”)

If Council approves the recommendation put forward in this report, the TDSB will be responsible for all costs associated with construction of the field and the ongoing maintenance throughout the term of the Agreement.

The purpose of this report is to propose changes to the rules for speaking during debate at meetings of City Council and its committees. 

These changes require amendments to the Council Procedures and must be adopted by a two-thirds vote of City Council.

At its meeting held on August 25, 26 and 27, 2010, City Council authorized the initiation of expropriation proceedings for various properties.  Those currently required, are set out in Appendix "A" of this report (the "Properties") and are required to accommodate the design of the Woodbine Station Easier Access and Second Exit Program (the "Project").

This report seeks approval to expropriate the Properties for the Project.

At its meeting held on February 7 and 8, 2011, City Council authorized the initiation of expropriation proceedings for portions of two privately owned properties (the "Properties") as set out in Appendix "A", for the Redlea Avenue extension (the "Project"). 

This report seeks approval to expropriate the Properties for the Project.

The purpose of this report is to obtain City Council authority to enter into a new Below‑Market Rent (BMR) sublease agreement with the Toronto Cultural Advisory Corporation (operates as Toronto Arts Council or TAC) for approximately 5,127 square feet of space located at 30 Grand Trunk Crescent within Toronto Standard Condominium Corporation #1855. The proposed tenancy is for the standard BMR-lease term of five years.

Authority is also sought from City Council to provide the Toronto Arts Council with funding of up to a maximum amount of $200,000 previously secured for the selected subtenant for capital costs to fit-up the space through the Revised Precinct B Agreement for the Railway Lands East registered on June 28, 2002.

This BMR sublease will allow for affordable and sustainable cultural space for the TAC's offices. This is consistent with the report entitled Creative Capital Gains – An Action Plan for Toronto which was adopted by City Council in May 2011.

The Licensing and Standards Committee referred the submission from Darcy Higgins (Item LS14.2.7) to the Executive Director, Municipal Licensing and Standards, for consideration.

Bruce Robertson, Director, Licensing Services, Municipal Licensing and Standards, gave a presentation to the Licensing and Standards Committee on Street Food Vending.

4.         City Council direct that no sign permit be issued until the three signs identified in Figures 6 (southwest of the intersection of Martin Grove Road and Bethridge Road), 7 (115 Belfield Road) and 8 (115 Belfield Road) in the report (May 17, 2012) from the Chief Building Official and Executive Director, Toronto Building are removed.

The Planning and Growth Management Committee held a public meeting on June 11, 2012, and notice was given in accordance with the City of Toronto Municipal Code.