Minutes Confirmed on January 19, 2017

The Executive Committee recommends that:

1.  City Council receive the report (November 23, 2016) from the City Manager, the Deputy City Manager and Chief Financial Officer, the Deputy City Manager, Cluster A and the Deputy City Manager, Cluster B for information.

The City Manager and the Deputy City Manager and Chief Financial Officer gave a presentation on EX20.1, EX20.2, and EX20.3 - Long-Term Financial Direction Update, Revenue Strategy, and Asset Optimization reports.

This report provides an update on the City's Long-Term Financial Plan, as directed by Council in June 2016 (EX15.1). The Plan is currently under development and will provide scenarios for a sustainable financial framework for municipal services and city-building investments, involving both expense and revenue measures.

Long-term expense and revenue considerations should be integral to the annual budget process. Therefore this update report is being brought forward to inform current Council deliberations around the City's rate- and tax-supported budgets as follows:

-  2017 rate-supported operating and capital budgets (launched at the November 4, 2016 meeting of Budget Committee, finalized at the December 13, 2016 meeting of Council)

-  2017 tax-supported operating and capital budgets and 2018 outlook (launched at the December 6, 2016 meeting of Budget Committee, finalized at the February 15, 2017 meeting of Council).

In addition, two closely aligned staff reports are being brought forward to the Executive Committee on December 1, as requested by Council:

-  Asset Optimization Review - Toronto Hydro Corporation and Toronto Parking Authority

-  The City of Toronto's Immediate and Longer-Term Revenue Strategy Direction.

Each of the above reports will be presented on a standalone basis reviewed by Council and Committee as a separate items. In practice, however, issues and potential policy responses overlap - including decisions in response to these interrelated challenges.

The absence of integrated financial planning - across budgets, program areas and annual cycles - is a longstanding challenge for City governance and Council decision making. It has contributed to the emergence of significant gaps between Council's current fiscal framework and long-term aspirations.

This report presents a brief summary of the key financial challenges facing the City in order to provide a basis for integrated decision making in 2017 and beyond.

The primary fiscal challenges that must be addressed include:

-  2017 preliminary operating budget pressures and resolution of a balanced budget

-  2017-2026 preliminary capital plan and pressures

-  Continued unfunded capital projects

-  Improving performance of City assets

-  Long-term expense management, particularly with regard to City agencies

-  Long-term revenue management

The report also provides a summary of key initiatives advanced in support of the Long-Term Financial Plan over the past six months. This work includes various corporate and program-level initiatives, including a Council-directed public engagement process. This consultation was launched in early November and will be completed by the second quarter of 2017.

Council consideration of a consolidated set of expense and revenue options under the Long-Term Financial Plan is expected in the second quarter of 2017, well in advance of 2018 budget decisions.

The Executive Committee recommends that:

1.  City Council refer the following revenue options to the Budget Committee for consideration as part of the 2017 budget process:

a.  introducing a dedicated property tax levy of 0.5 percent directed to the City Building Fund.

b.  allowing the commercial property tax rates to rise at the maximum allowed 50 percent of the residential property tax rate increase;

c.  harmonizing the Municipal Land Transfer Tax (MLTT) rates with the Ontario Land Transfer Tax (LTT) rates, including the new graduated rate;

d.  harmonizing or increasing the Municipal Land Transfer Tax first-time homebuyer (FTHB) rebates with the Ontario Land Transfer Tax first-time homebuyer rebates, including the new Canadian citizenship and permanent residency test; and

e.  changing the Municipal Land Transfer Tax first-time homebuyer rebate eligibility criteria to include a maximum value of consideration.

2.  City Council direct that consideration of any increase in the Third Party Sign Tax be deferred until the Planning and Growth Management Committee has considered the staff report on the review of the Tax expected in April, 2017, as referenced in the report (November 17, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer.

3.  City Council give consideration to expanding the use of electronic signs as a way of increasing the amount of funds raised by the Third Party Sign Tax.

4.  City Council endorse changes and request the Province to move ahead with:

a.  Legislative and/or regulatory reforms to enable in 2017:

i.  hotel and short-term accommodation rental tax;

ii.  clear authority to require the collection of taxes by intermediaries, such as for hotel and short-term rental accommodation taxes; and

iii.  tolling of roads under the jurisdictional ownership of the City.

5.  City Council request the Province to exempt any Toronto road tolls from HST and in the event that this is not possible, that the HST be applied to transit expansion in the City of Toronto.

6.  Should the City receive authority to implement the tolling of roads, City Council direct the City Manager and the Deputy City Manager and Chief Financial Officer to report on:

a. capping the amount of toll that a Toronto resident would pay per year, and

b. issuing a Request for Expression of Interest on the methods in which tolls would be administered, including the use of dynamic pricing that would reduce tolls during off-peak travel periods.

7.  City Council direct the City Manager, the Deputy City Manager and Chief Financial Officer, and the General Manager, Economic Development and Culture to consult impacted businesses on the revenue options identified in recommendations 2 and 3 in the report (November 17, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer, as part of the Long-Term Financial Plan consultation process.

8.  City Council request the Province to continue to support regional tourism in Toronto by maintaining or enhancing the annual funding, with the base being the current funding level of $9.9 million, provided to Tourism Toronto as a Regional Tourism Organization.

9.  City Council direct the City Manager, in consultation with the Chief Planner and Executive Director, City Planning and the City Solicitor, as part of the 2017 budget process, to report on options for City Council to establish a cash payment-in-lieu of parking policy for new residential developments which do not meet the City's parking standards, with the funds to be held in a reserve account dedicated to funding transit and cycling capital improvements.

The City Manager and the Deputy City Manager and Chief Financial Officer gave a presentation on EX20.1, EX20.2, and EX20.3 - Long-Term Financial Direction Update, Revenue Strategy, and Asset Optimization reports.

The City is assessing its overall approach to both revenue and expenses within the context of updating its long-term financial direction.  The City's finances are often complex and seemingly abstract, but they are fundamental to achieving Council's collective vision for a growing, diverse and dynamic community, with unique challenges such as traffic congestion, higher incidence of poverty, and disproportionate social housing burdens from those faced by surrounding municipalities.

This report provides a framework for the application of existing and new revenues, principles for the selection of potential revenues, a discussion on social and economic impacts, and implementation considerations.

The City funds its activities from a variety of sources that can be categorized as property-related taxes, specialty taxes, and service fees. The City's broad taxation authorities are set out in the City of Toronto Act, 2006 (COTA), and limited by a list of prohibited tax fields such as income, sales, and wealth. The remaining options tend to be rather narrow in application, and correspondingly limited in terms of revenue capacity. The City explored its tax options both within and outside its authority during the June 28, 2016 meeting of Executive Committee (EX16.3).

All taxes are generally viewed negatively by the public and directly affected parties. The challenge is to choose those options that produce the least harm, with particular sensitivity to those who are directly impacted.

This report provides the results of further analysis regarding those options that appeared to have the most potential to address both immediate revenue requirements of the City's 2017 budget and 2018 budget outlook and the City's long term capital requirements. The potential for a car rental tax is also discussed, as directed by Executive Committee.

The analysis includes consideration of the potential short and long term social and economic impacts of each option on the businesses and residents of Toronto, implementation and administration challenges, and the status of the legislative and regulatory restrictions and limitations.

When these factors are considered, the City is left with a limited set of practical options for significantly expanding its revenue base in 2017. These significant measures include property tax, land transfer tax, and reinstatement of the vehicle tax. A parking levy is not recommended due to its poor scoring on key criteria. More modest tax revenue options with longer implementation lead times, which require provincial legislative or regulatory changes, include introducing a new alcohol tax and/or hotel tax.

A somewhat broader set of options including expressway tolling and a parking sales tax may exist for future consideration, but these will similarly depend on provincial legislative and regulatory reforms. Expressway tolling can be an effective user pay option to generate funds to pay for highway rehabilitation costs and potentially other related mobility projects. Moderate tolls are affordable relative to other existing travel options, and can be an effective traffic management tool.

Various other taxation options exist and continue to be options for future consideration, including some that were discussed in the June 2016 KPMG study, such as a tobacco tax and/or an amusement tax.

The choice of application of tax proceeds is an important component of gaining public trust. Some taxes may be best suited for addressing unfunded capital requirements, while others may be more appropriate for dealing with ongoing operating expenditures. These attributes are discussed in the report.

This report has been prepared by Corporate Finance in consultation with staff from City Manager's Office, Economic Development and Culture, Social Development, Finance and Administration, Revenue Services Division, City Planning, City Legal, Financial Planning, Municipal Licensing and Standards, and Transportation Services.

The Executive Committee recommends that:

1.  City Council:

a.  provide support for the credit rating and balance sheet strength of Toronto Hydro Corporation in order to restore and enhance dividend capacity by making an equity contribution of approximately $250 million, the details to be subject of a Deputy City Manager and Chief Financial Officer report to Executive Committee in the first quarter of 2017; and

b.  direct the City Manager to initiate a governance review, in consultation with the President and the Board of Directors of Toronto Hydro, to ensure that the Corporation and its Board have the appropriate orientation to optimize fiscal results, and to report to the Executive Committee in the fourth quarter of 2017.

2.  City Council direct the Deputy City Manager and Chief Financial Officer to report to the Budget Committee as part of the 2017 budget process, on the potential for increasing the Toronto Parking Authority's income share rate to the City.

3.  City Council direct the President, Toronto Parking Authority, in consultation with the Deputy City Manager and Chief Financial Officer and the Board of Directors of Toronto Parking Authority, to report to Executive Committee in 2017 on potential measures to support increasing Toronto Parking Authority income including consideration of the Toronto Parking Authority's rate setting process, with a view to a City-wide strategy for increasing the alignment of future parking rates with market prices.

4.  City Council authorize and direct the appropriate City officials to take the necessary action to give effect to these recommendations; and that leave be granted for the introduction of any necessary bills in Council to give effect to Council's decision.

5.  City Council direct that confidential Appendix 1 to the report (November 17, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer remain confidential in its entirety due to the security of the property of the City and addresses a matter in respect of which City Council or the Toronto Hydro directors may hold a closed meeting under another Act.

The City Manager and the Deputy City Manager and Chief Financial Officer gave a presentation on EX20.1, EX20.2, and EX20.3 - Long-Term Financial Direction Update, Revenue Strategy, and Asset Optimization reports.

As part of the work on the City's updated long-term financial direction, the City is assessing its overall approach to enhancing both revenue and expenses.  City finances are often complex and seemingly abstract, but they are fundamental for achieving Council's collective vision for a growing, diverse and dynamic community, with unique challenges such as congestion, poverty related issues, and social housing burdens that are different from those faced by other municipalities.

The City Manager and the Deputy City Manager and Chief Financial Officer have undertaken an asset optimization study in relation to the City's investments in Toronto Hydro Corporation ("THC") and Toronto Parking Authority ("TPA"), as directed by Council in June 2016.  In order to carry out this work, City staff retained the services of Deloitte LLP. 

The results of the Deloitte study are outlined in this report.  In regard to Toronto Hydro Corporation, the analysis considered the relative benefit in present value financial terms of four main capital restructuring options, each designed to increase dividends or monetize equity.

The conclusion is that if the City is most concerned with maximizing present value and preserving dividend flow, then the best course of action is a direct City investment of approximately million to restore and enhance Toronto Hydro Corporation's capacity to pay dividends.

In the event that the revenue options study fails to identify a revenue strategy to begin to address the City's unfunded capital program, then a monetization of the City's equity in Toronto Hydro Corporation could be considered at a later time. Necessary steps are identified to explore monetization options, including action on a mitigation strategy for the significant transaction tax exposure.

With respect to the City's investment in Toronto Parking Authority (TPA), it is recommended that the City retain its ownership under an enhanced net income scenario, and that the potential for increasing Toronto Parking Authority's payout rate to the City be considered as part of the 2017 budget process.  It is also recommended that Toronto Parking Authority's plans for capital expansion continue to be screened through the City-Wide Real Estate Review process.

The Executive Committee recommends that:

1.  City Council confirm priority projects for the Public Transit Infrastructure Fund as outlined in Attachment 1 to the report (November 17, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer, and authorize the Mayor and the City Manager to negotiate and enter into agreements and amendments as may be required with the Province of Ontario for the PTIF and the Clean Water Wastewater Fund substantially in accordance with the terms and conditions set out in Attachment 2 to the report (November 17, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer, and such additional terms and conditions satisfactory to them, and in a form acceptable to the City Solicitor.

2.  City Council approve Public Transit Infrastructure Fund (PTIF) related amendments to the 2016 - 2025 Capital Budget and Plan as follows:

a.  Funding Adjustments:

i.  adjust 2016 Toronto Transit Commission Capital funding for PTIF funded projects outlined in Attachment 1 to the report (November 17, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer, reducing $101.220 million in funding from the Capital Financing Reserve Fund (XQ0011) and replacing with $101.220 million in federal PTIF funding; and:

a.  increase the project approval for the 2016 approved Capital projects for the Toronto Transit Commission projects list as summarized in Appendix A to the report (November 21, 2016) from the Toronto Transit Commission Budget Committee.

ii.  adjust 2016 and 2017 Capital funding for the Eglinton East Light Rail Transit (LRT) capital sub-project within the Transit Expansion Initiatives project in the Corporate Initiatives Program, reducing $3.5 million in funding from the Capital Financing Reserve Fund (XQ0011) and replacing with $3.5 million in federal PTIF funding; and

iii.  increase the 2016 Transportation Services Capital Budget by $1.555 million, funded from federal PTIF funding for Road Safety and Surface Transit Operations projects.

b.  City Council approve the remaining $1.558 billion in projects costs cash flowed from 2017 to 2019 for PTIF funded projects as outlined in Attachment 1 to the report (November 17, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer, made up of new; accelerated and enhanced; and previously approved projects that assumed federal funding contributions; funded from $726.8 million in federal PTIF funded; $708.2 million in City debt funding; and $122.8 in Provincial share of partnered projects.

3. City Council provide project approval for those projects that were deemed previously unfunded (in the 2016-2025 Council approved Capital Budget) and for new initiatives that are included in the 2017-2026 Capital Budget as summarized in Appendix A to the report (November 21, 2016) from the Toronto Transit Commission Budget Committee.

4.  City Council request the Government of Canada and Province of Ontario to extend program timelines for the Public Transit Infrastructure Fund (PTIF) and Clean Water Wastewater Fund programs as may be required, and confirm that any unspent funds under the PTIF Phase 1 agreement will be reprofiled and reallocated to Toronto on a ridership basis.

5.  City Council confirm its key priorities for intergovernmental funding, as outlined in Attachment 3 to the report (November 17, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer, and authorize the Mayor and the City Manager to negotiate and enter into funding agreements as required for Phase 2 of the Government of Canada's infrastructure plan.

6.  City Council request the Government of Canada commit at least $12.66 billion under Phase 2 of the Social Infrastructure Fund for housing initiatives, as per requests of the Federation of Canadian Municipalities' Big City Mayors Caucus.

7.  City Council request the Government of Canada allocate funding for public transit under Phase 2 on a ridership basis.

8.  City Council request the City Manager and the Deputy City Manager and Chief Financial Officer to consider the City Infrastructure identified in the St. Clair West Transportation Master Plan, including the widening of the St. Clair Avenue West Railway Bridge between Keele Street and Old Weston Road and the extensions of Davenport Road, Gunns Road and Keele Street, as a priority for intergovernmental funding under Phase 2 of the federal government infrastructure programs.

9.  City Council direct the Deputy City Manager and Chief Financial Officer to allocate resources as required for the implementation of City projects under new federal and provincial funding programs for consideration as part of the 2017-2026 Capital Budget process.

The Government of Canada has announced $81 billion in new infrastructure funding over the next eleven years in the categories of public transit, social infrastructure, green infrastructure and trade and transportation. Funding under the Investing in Canada program will occur in two phases, with Phase 1 allocating $11.9 billion over five years and Phase 2 outlining the remainder of the plan.

This report provides an update on Phase 1 including the new Public Transit Infrastructure Fund (PTIF) and Clean Water Wastewater Fund (CWWF). The report outlines implementation details for the City's PTIF and CWWF program and seeks City Council authorities for required budget adjustments and to enter into intergovernmental funding agreements.

The report also outlines the Government of Canada's commitments under Phase 2 and recommends that City Council confirm its key infrastructure priorities for new federal funding. City Council has consistently outlined these priorities through decisions related to project funding and capital budgets and plans.

Federal investments under Phase 1 recognize the need for partnership in maintaining and expanding Toronto's public infrastructure. Successful delivery and implementation of Phase 1 investments set the stage for significant federal funding anticipated under Phase 2 which can further advance City Council's key city building priorities to enhance the vitality of Canada's largest city and economic region.

At its meeting on Monday, November 21, 2016 the Toronto Transit Commission Board considered the attached report entitled "Federal Public Transit Infrastructure Fund (PTIF)".

The Board adopted the recommendations in the staff report, as follows:

"It is recommended that the Board:

1.  Approve the list of Toronto Transit Commission's priority capital projects for funding under the Federal Public Transit Infrastructure Fund (PTIF) in the amount of $1.363 billion as outlined in Appendix A.

2.  Authorize Federal Public Transit Infrastructure Fund related amendments to the 2016-2025 Capital Budget as follows:

a.  Increase the project approval for the 2016 approved Capital projects for the Toronto Transit Commission projects list as summarized in Appendix A;

b.  Provide project approval for those projects that were deemed previously unfunded (in the 2016-2025 Council approved Capital Budget) and for new initiatives that are included in the 2017-2026 Capital Budget as summarized in Appendix A.

3. Forward this report to City Council for approval."

The Executive Committee recommends that:

1.  City Council request the City Clerk to negotiate and enter into an agreement with Elections Systems and Software Canada, ULC for the supply and installation of new modems and associated software in the estimated amount of $1.55 million exclusive of HST ($1,577,280 net of HST recoveries), fully funded from the 2016 Council Approved Capital Budget, on terms and conditions satisfactory to the City Clerk and in a form satisfactory to the City Solicitor.

2. City Council request the City Clerk to further explore a partnership with Elections Ontario related to the sharing of voting technology for future elections.

The purpose of this report is to update City Council on the recent changes to the Municipal Elections Act (MEA) resulting from Bill 181, Municipal Elections Modernization Act and Bill 68, Modernizing Ontario's Municipal Legislation Act, 2016. These amendments to the Municipal Elections Act represent the most significant and extensive changes in decades and will impact candidates, voters, municipal councils and election administrators.

This report also reviews the current state of voting technology and recommends that City Council authorize the expenditure to install new modems in the City's existing vote tabulators to allow for their continued use in 2018. This will ensure seamless continuity into the 2018 election and allow staff to further explore a possible partnership with Elections Ontario on the sharing of voting technology for future elections as is proposed in Bill 45, Election Statute Law Amendment Act, 2016.

This report also advises that there have been insufficient advances in Internet security to accept the risks of implementing Internet voting for the 2018 general election. The challenges identified by both City staff and security experts in 2014 remain unresolved. Internet voting continues to be vulnerable to security threats and attacks while raising concerns about secrecy of the vote, verifiability and overall election integrity.

The Executive Committee deferred consideration of the item indefinitely.

The purpose of this report is to report on the feasibility of an e-petition program as requested by the Executive Committee and to seek direction on whether City Council wishes to implement such a program.

An e-petition program like ones used in other municipal jurisdictions is feasible if:

1.  City Council is prepared to fund the capital and operating costs of the program.

2.  City Council is prepared to amend the Council Procedures to establish rules that allow the public to use petitions to identify issues that require consideration by committees and Council.

If City Council wishes to pursue such a program, it should direct the City Clerk to prepare the necessary budget, policy and by-law submissions for Council consideration.

The Executive Committee recommends that:

1.  City Council receive the report (November 17, 2016) from the Executive Director, Strategic and Corporate Policy for information.

On August 25, 2014 City Council requested boards of City agencies and corporations to develop senior executive compensation policies, adhering to the guiding principles set out in the City Manager's report. The guiding principles, based on a total rewards approach, includes requirements to set a base salary range using a relative public sector comparator analysis, places a 25 percent limit on variable incentive and/or merit pay, limits employer pension contributions to 1.0 time the employee contribution, and a review of senior executive benefits.

The objective of the August 2014 report was to ensure that senior executive compensation policies at agencies and corporations are set within a framework that is fair, transparent and accountable, and complements similar practices across the Toronto Public Service.

City Council requested that executive compensation policies be applied to new senior executive compensation contracts and to existing contracts that permit compensation adjustments, either during an existing term or under renewal. Agencies and corporations are to review their policy every four years.

Compensation reviews have been undertaken by agency and corporation boards, with support from the City Manager's Office and independent external expertise. Where executive compensation studies were completed, boards conducted market studies including preparation or updating of detailed job descriptions, compensation reviews involving wage comparator analyses of "like" public sector organizations, establishment of base pay salary ranges, merit / variable pay and benefits best practices, and development of comprehensive executive compensation policies based on market research.

The purpose of this report is to provide City Council with an update on compliance by agencies and corporations and ongoing City oversight. Attachment 1 to this report provides a status update for each agency and corporation.

The Executive Committee recommends that:  

1.  City Council amend the Heritage Toronto Relationship Framework to give effect to the following:

a.  broadening the responsibilities of the Heritage Toronto Board to include assisting and advising on heritage master planning matters.

b.  reducing the number of meetings of the Heritage Toronto Board from at least six times per year to at least four times per year.

2.  City Council amend the composition of the Heritage Toronto Board in two phases:

a.  effective January 1, 2017

1. reducing the number of representatives who are members of City Council from four to two;

2. deleting the eight Community Council member positions; and

3. adding two public at large representative positions;

so that for the period January 1, 2017 to November 30, 2018, the structure of the Heritage Toronto Board will be 21 members composed of:

Member of Council - 1

Mayor or Mayor's Designate - 1

Public at large members - 17

Public member nominated by the Toronto Historical Association - 1

Public member from the Aboriginal community – 1; and

b.  effective December 1, 2018:

1.  deleting two public at large positions

so that the composition of the Board on December 1, 2018 will be 19 members composed of:

Mayor or Mayor's Designate - 1

Member of Council - 1

Public at large members - 15

Public member nominated by the Toronto Historical Association - 1

Public member from the Aboriginal community - 1

3.  City Council rescind the appointments of the two Community Council representatives previously appointed for a term of office ending on November 30, 2018, effective January 1, 2017, and reappoint them as public at large members of the Board, at the pleasure of Council, for a term of office ending on November 30, 2018, and until successors are appointed:

John Belyea

Ross Fair

4.  City Council amend the Heritage Toronto Relationship Framework to change the recruitment method for the representative of the Aboriginal community from an interest based nomination to a public recruitment.

5.  City Council establish a Heritage Nominating Panel, composed of three Members of Council, to interview and recommend candidates to boards that deal with heritage related matters.

6.  City Council authorize the City Solicitor to introduce the necessary bill to amend Toronto Municipal Code Chapter 103, Heritage, to implement City Council's decision.

At its meeting of January 20, 2016, the Heritage Toronto board requested a number of amendments to its Relationship Framework to reduce the number of Board meetings required each year and to broaden its mandate.  Upon review, City staff proposed further changes to reduce the size of the Heritage Toronto board and amend the recruitment method for the Aboriginal member.  The additional changes were supported by Heritage Toronto staff.

This report seeks authority to update the Relationship Framework between the City of Toronto and Heritage Toronto in order to affect a number of changes including:

- to reduce the size of  the Board from 29 members to 19 members by reducing the number of City Councillors on the Board from four to two to reflect the community mandate of the Board, and by removing the eight Community Council appointments;

- to reduce the number of Board meetings required per year from six to four;

- to change the process for selection of the Aboriginal member from nomination by the Aboriginal Community to selection through the public appointments process; and

- to broaden the Board's mandate to include providing advice on updates to City's heritage master plan and other heritage matters. 

To implement the appointments for the term that begins January 1, 2017, it is recommended that City Council establish a new Heritage Nominating Panel.  This new panel of three City Council members would be responsible for appointments for boards that deal with heritage related matters.

The Executive Committee recommends that:  

1.  City Council approve an increase of one temporary position in the City Manager's Office 2016 Operating Budget for the creation of a Chief Resilience Officer, and authorize the City Manager to accept grants from the 100 Resilient Cities that provide funding equivalent to the salary and benefit costs for the position for a two-year period.

2.  City Council direct the City Manager, prior to the conclusion of the two-year grant funding provided by 100 Resilient Cities, to consider making the Chief Resiliency Officer position permanent.

This report seeks Council approval to create and initiate the recruitment process for a Chief Resiliency Officer (CRO) position within the City Manager's Office.  The position is temporary for two years beginning in 2017 with salary and benefit costs offset by equivalent grant funding provided by the 100 Resilient Cities (100RC), an initiative pioneered by the Rockerfeller Foundation.

In 2015, the Environment and Energy Division submitted an application for funding to 100 Resilient Cities.  In May 2016, Toronto was notified it has been selected to join 99 other global cities as part of the 100 Resilient Cities network.  Toronto joined Vancouver, Calgary and Montreal as members of the Canadian cohort.

100 Resilient Cities was established to help cities around the world become more resilient to the social and economic challenges of the 21st century.  100 Resilient Cities supports resiliency efforts that respond not only to shocks such as extreme weather and terrorism but also to the stresses that weaken cities on a day-to-day or cyclical basis such as growing social inequity, aging infrastructure, housing and transportation challenges, and climate change.  Cities within the network are provided with funding to hire a Chief Resiliency Officer as well as additional tools and resources to develop and implement a resilience strategy.

The Chief Resiliency Officer will report directly to the City Manager and will be responsible for the development of a resiliency strategy and to drive its implementation in co-ordination with City divisions, agencies and corporations, community-based partners and other key stakeholders.

The Executive Committee recommends that:

1.  City Council adopt the TO Prosperity 2017 Annual Work Plan for implementation as outlined in Attachment B to the report (November 17, 2016) from the Executive Director, Social Development, Finance and Administration and forward the initiatives with financial impacts to the City Manager for consideration as part of the 2017 budget process.

2. City Council establish a Fair Pass Program, subject to approval of funding as part of the 2018 Budget, approval by the Toronto Transit Commission Board of the addition of a low-income concession, and the full roll out of PRESTO, that includes a discount on the PRESTO adult single fare and PRESTO adult monthly pass, and direct:

a. that the discount level for the Fair Pass Program be 33 percent for the adult single fare and 21 percent for the adult monthly pass;

b. that the eligibility for the Fair Pass Program discounts be to all Toronto residents living with an income below the Low Income Measure + 15 percent, except for Ontario Disability Support Program and Ontario Works clients in receipt of transportation supports; and

c. a multiphase implementation of the Fair Pass Program as follows:

- Phase 1 – staring in March 2018 – includes only Ontario Disability Support Program and Ontario Works clients not in receipt of transportation supports;

- Phase 2 – starting in March 2019 – extends eligibility to residents receiving housing supports or child care fee subsidy whose household income fall under the Low-Income Measure +15 percent eligibility threshold; and

- Phase 3 – starting in March 2020 – extends eligibility to all other Toronto residents living with an income below the Low Income Measure +15 percent threshold.

3. City Council direct that funding for Phase 1 of the Fair Pass Program be included for consideration by City Council in the 2018 Operating Budget.

4. City Council direct the Executive Director, Social Development Finance and Administration, in partnership with the General Manager, Toronto Employment and Social Services, the Chief Executive Officer, Toronto Transit Commission, the Medical Officer of Health, and the Executive Director, Financial Planning to:

a. report to the Executive Committee in Winter 2019 on the evaluation of phase 1 and present an implementation plan, including a detailed cost analysis and funding strategies, for phase 2; and

b. report to the Executive Committee in Winter 2020 on the evaluation of phase 2 and present an implementation plan, including a detailed cost analysis and funding strategies, for phase 3.

5. City Council consider funding for Phase 2 and Phase 3 of the Fair Pass Program as part of the 2019 Operating Budget process and 2020 Operating Budget process respectively.

6. City Council forward this report to the Premier of Ontario, relevant Provincial and Federal Cabinet Ministers, and the Chair of the Board of Directors, Metrolinx.

In 2015, City Council unanimously approved TO Prosperity: Toronto Poverty Reduction Strategy. TO Prosperity is a 20-year plan focused on six key areas: Housing Stability, Service Access, Transit Equity, Food Access, Quality Jobs and Liveable Incomes, and Systemic Change.

Year 1 of TO Prosperity saw the development of key policies, the expansion of essential services and programs, and the formation of promising partnerships. Year 1 also coincided with developments at the federal and provincial levels that may have positive impacts on poverty reduction. While these are reasons for optimism, recent data on food bank use, child care, and housing show that a large portion of Torontonians continue to be deprived of basic necessities. Much more needs to be done.

After a brief description of recent data on poverty in Toronto, and a short discussion of developments at the federal and provincial levels, this report summarizes the 2016 Toronto Poverty Reduction Strategy Progress Report and introduces the 2017 Toronto Poverty Reduction Strategy Work Plan. The 2016 Progress Report is included as Attachment A. The 2017 Toronto Poverty Reduction Strategy Work Plan is included as Attachment B. The Toronto Poverty Reduction Strategy Year 1 "Report to the Community" is included as Attachment C.

The Toronto Poverty Reduction Strategy puts forward two recommendations to increase transit equity: "improve transit services in the inner suburbs" and "make transit more affordable for low-income residents." The City is advancing major plans to expand transit services, but the social, economic, and health benefits of expanded services will not be realized if a large portion of city residents cannot afford Toronto Transit Commission fares.

Between 2009 and 2016, the Toronto Transit Commission monthly metropass increased by 30 percent (from $109 to $141.50), while the minimum wage increased by 20 percent (from $9.50 to $11.40). A transit-dependent family of four, with two working parents earning the minimum wage spends between 20 percent and 35 percent of their after-tax and after-rent income on Toronto Transit Commission fares. The Toronto Transit Commission monthly pass is the second least affordable in Canada.

Low-income adults aged 20 to 64, as a group, pay the highest Toronto Transit Commission fares. There are no discounts for this age group, and data shows that low-income riders use cash fares and tokens more often than medium- and high-income riders, who are likely to buy monthly metropasses, which are cheaper on a per-ride basis. Unable to pay the upfront cost of the monthly metropass pass, most of working-age, low-income residents pay per ride and end-up spending more on transit that everyone else.

Numerous Canadian municipalities have low-income transit pass programs, including Burlington, Calgary, Guelph, Hamilton, Kingston, Milton, Mississauga, Oakville, Saskatoon, Windsor, Halton Region, Niagara Region, York Region, and the Region of Waterloo. International examples include Paris, London, Seattle, and San Francisco.

Leveraging the new PRESTO technology and existing City administrative processes, the Fair Pass Program recommended in this report puts forward an evidence-based, cost-effective, and user-friendly response to several Council directions to increase transit access for low-income residents.

The Executive Committee received the report (October 12, 2016) from the Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer for information.

This report responds to Executive Committee's September 22, 2016, request to staff to meet with representatives of Presentation Manor for Seniors and to report to the October 26, 2016, meeting on the outcome of those discussions.

Presentation Manor had sought an exemption from development charges and park fees/land conveyance associated with the construction of a retirement home on the basis that the project qualified as non-profit housing. Based on information provided, staff determined that Presentation Manor did not meet the criteria for the exemptions it had sought and therefore was required to pay applicable development charges and park levy cash-in-lieu.

Staff met with representatives of Presentation Manor on September 23, 2016, exploring and carefully considering the nature of their interpretation of the City's Development Charges By-law. Staff have confirmed that the project does not qualify for the exemption. Retirement homes are fully chargeable.

The Executive Committee recommends that:

1.  City Council authorize the Chief Corporate Officer, in consultation with the City Solicitor, to negotiate a scope of work and enter into a non-competitive agreement with Ontario Infrastructure and Lands Corporation (IO), subject to the following conditions:

a.  that the term of the agreement be from January 1, 2017 to June 30, 2018;

b.  that the services as set out in Attachment 1 to the report (November 17, 2016) from the Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer be performed within the timeframe set out in Recommendation 1a above;

c.  that the total cost of the services from January 1, 2017 to June 30, 2018 not exceed $1.65 million (net of HST Recoveries); and

d.  that the agreement be on terms and conditions satisfactory to the Chief Corporate Officer and in a form satisfactory to the City Solicitor.

2.  City Council authorize the Chief Corporate Officer, in consultation with the City Solicitor, to negotiate a scope of work and enter into a non-competitive agreement with Prism Partners Inc. as the Owner's Representative subject to the following conditions:

a.  that the term of the agreement be from January 1, 2017 to June 30, 2018;

b.  that the services as set out in Attachment 2 to the report (November 17, 2016) from the Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer, be performed within the timeframe set out in 2a above;

c.  that the total cost of the services from January 1, 2017 to June 30, 2018 not exceed $561,600 (net of HST Recoveries); and

d.  that the agreement be on terms and conditions satisfactory to the Chief Corporate Officer and in a form satisfactory to the City Solicitor.

3.  City Council authorize the Chief Corporate Officer, in consultation with the City Solicitor, to negotiate a scope of work and enter into a non-competitive agreement with Montgomery Sisam Architects Inc. as Planning, Design and Compliance (PDC) Consultants subject to the following conditions:

a.  that the term of the agreement be from January 1, 2017 to June 30, 2018;

b.  that the services as set out in Attachment 3 to the report (November 17, 2016) from the Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer be performed within the timeframe indicated in 3a above;

c.  that the total cost of the services from January 1, 2017 to June 30, 2018 not exceed $3,103,308 (net of HST Recoveries); and

d.  that the agreement be on terms and conditions satisfactory to the Chief Corporate Officer and in a form satisfactory to the City Solicitor.

4.  City Council direct the Deputy City Manager, Cluster A, and the Deputy City Manager and Chief Financial Officer to report back by the second quarter of 2018 to Executive Committee and Council with a status update.

On July 12, 2016 City Council adopted "George Street Revitalization:  Recommended Procurement and Delivery Strategy" (EX16.13).  Through that report, Council authorized staff to proceed with an Alternative Financing and Procurement (AFP) model for the implementation of the George Street Revitalization (GSR) project using a Design-Build-Finance (DBF) approach.  Council referred the project to the 2017 Capital Budget process.  Council also authorized staff to initiate negotiations towards an agreement with Infrastructure Ontario (IO) as commercial procurement lead and directed staff to report back by December 2016 with a status update.

Staff propose that the GSR project proceed in two phases:  (1) an initial 18-month period (January 1, 2017 to June 30, 2018) during which IO conducts a due diligence review of work completed to date and ensures that the project is AFP-ready, while the two current prime consultants develop the Project Specific Output Specifications (PSOS) with IO's support, and (2) a subsequent implementation and construction phase subject to Council approval of funding and successful negotiations with IO as the procurement lead.  Negotiations with IO for phase two would occur during the first phase.  Staff will report back to Council by the spring of 2018 with recommendations for the second phase.

This report addresses recommendations regarding the proposed first phase, seeking Council authority to enter into three short-term non-competitive agreements.  The contracted firms would be:  IO as AFP advisors, Prism Partners Inc. as Owner's Representative and Montgomery Sisam Architects Inc. as Planning, Design and Compliance (PDC) Consultants.  Staff will continue to negotiate the three scopes of services outlined in this report. Funds for the three contracts total a maximum of $5,314,908 (net of HST Recoveries): $3,543,272 required in 2017 and $1,771,636 required in 2018.  Funds are available in the Shelter, Support and Housing Administration (SSHA) Capital Budget.  City Finance staff are reporting to the December 2016 meeting of City Council on the Interim Capital Estimates for 2017 and include the amount required for the three contracts.

The Executive Committee recommends that:

1.  City Council grant authority for the City as Vendor to enter into an Agreement of Purchase and Sale (APS) with The George Brown College of Applied Arts and Technology (GBC) as Purchaser for the City-owned lands being "Dockside" Block 3, Plan 66M- 2476, indicated as Block 3 on Map 1 (the "Property"), together with the restrictive covenant and ancillary agreements contemplated under the Agreement of Purchase and Sale (collectively the "Sale Transaction Agreements"), substantially on the terms and conditions set out in Attachment 1 to the report (November 23, 2016) from the Deputy City Manager, Cluster B, together with such other terms and conditions as may be deemed appropriate by the Deputy City Manager, Cluster B in consultation with the Chief Corporate Officer and in a form satisfactory to the City Solicitor, subject to Recommendation 3 below.

2.  City Council grant authority for the City to enter into an agreement with Waterfront Toronto substantially on the terms and conditions set out in Attachment 2 to the report (November 23, 2016) from the Deputy City Manager, Cluster B (the "Undertaking Agreement"), together with such other terms and conditions as may be deemed appropriate by the Deputy City Manager, Cluster B in consultation with the Chief Corporate Officer and in a form satisfactory to the City Solicitor.

3.  City Council direct that prior to the City entering into the Sale Transaction Agreements, the following matters be completed or provided for to the satisfaction of the Deputy City Manager, Cluster B in consultation with the City Solicitor and other City officials as appropriate:

a.  Toronto Waterfront Revitalization Corporation and George Brown College of Applied Arts and Technology having entered into the Development Agreement in respect of the Property;

b.  Waterfront Toronto shall have entered into the Undertaking Agreement with the City; and

c.  Receipt by the City of a legal opinion in respect of corporate status and powers, authority of George Brown College of Applied Arts and Technology to enter into and perform the Sale Transaction Agreements and the Development Agreement, together with the execution, delivery, validity and enforceability of such agreements against George Brown College of Applied Arts and Technology, in form and content satisfactory to the City Solicitor.

4.  City Council grant authority to direct George Brown College of Applied Arts and Technology to pay to Waterfront Toronto the deposit, balance of the purchase price and all other amounts payable to the City under the Agreement of Purchase and Sale.

5.  City Council direct that any amounts that are to be repaid by George Brown College of Applied Arts and Technology for failing to maintain the child care centre in accordance with the Development Agreement in Attachment 3 to the report (November 23, 2016) from the Deputy City Manager, Cluster B, shall be paid to the City and deposited into a child care capital reserve fund account for use in the Designated Waterfront Area.

6.  City Council direct the Director, Waterfront Secretariat to recognize the purchase price under the Agreement of Purchase and Sale as part of the City's overall contribution to waterfront renewal, and be reported by Waterfront Toronto in its quarterly funding reports submitted to the three orders of government as part of the Waterfront Renewal Accounting Protocol.

7.  City Council authorize the Deputy City Manager, Cluster B in consultation with the Chief Corporate Officer, to negotiate the Sale Transaction Agreements and Undertaking Agreement, including any amendments in relation to such agreements not materially inconsistent with the major terms and conditions described in Attachments 1 and 2 to the report (November 23, 2016) from Deputy City Manager, Cluster B, as approved by Council, and in a form satisfactory to the City Solicitor. 

8.  City Council grant authority for the Chief Corporate Officer, her successor/designate, in consultation with the Waterfront Secretariat Director, to provide any consents, approvals, waivers, and notices under the Sale Transaction Agreements and Undertaking Agreement, in a form acceptable to the City Solicitor, 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, and provided that:

a.  the Chief Corporate Officer may consent to a transfer or charge of the Property under the s.118 Land Titles Act Restriction, as described in Attachment 1 to the report (November 23, 2016) from the Deputy City Manager, Cluster B, if the transfer is to another academic institution acceptable to the CCO or the charge is a bona fide charge to a chartered bank, trust company or recognized institutional lender, and in all cases, the transferee or chargee (during its period of possession of the Property), agrees to comply with the Development Agreement (DA), the s.119 Land Titles Act Restrictive Covenant (as described in Attachment 1 to the report (November 23, 2016) from the Deputy City Manager, Cluster B), consents to the continuation of the said s.118 Restriction on title to the Property for the term of the s.119 Restrictive Covenant, and complies with such other terms and conditions as the Chief Corporate Officer may deem appropriate;

 b. the Chief Corporate Officer shall not consent to the release or discharge of the s.118 Restriction or s.119 Restrictive Covenant prior to the expiry of the term of the Restrictive Covenant; and

 c. the Chief Corporate Officer may consent to amendments or modifications of the s.118 Restriction and the s.119 Restrictive Covenant that have been approved by the Deputy City Manager, Cluster B in accordance with Recommendation 7 above.

9.  City Council direct that subject to Recommendation 10 below, and with the written consent of Waterfront Toronto, the City consent to George Brown College of Applied Arts and Technology acting as the City's agent as owner of Property to sign any planning or development applications and agreements in furtherance of the development and construction of the Property provided the Agreement of Purchase and Sale has been executed and all requirements and obligations of George Brown College of Applied Arts and Technology therein are in good standing; or alternatively, that the City itself execute such documentation solely in its capacity as owner of the lands, on terms satisfactory to the Deputy City Manager, Cluster B, and in a form satisfactory to the City Solicitor.

10.  City Council direct that all actions described in the report (November 23, 2016) from the Deputy City Manager, Cluster B shall be taken by or on behalf of the City in its capacity as land owner and not in its capacity as a planning authority under the Planning Act, the City of Toronto Act, 2006, or otherwise and such actions are not intended to and do not fetter the City's planning and municipal rights and responsibilities.

11.  City Council direct that the City consent to Waterfront Toronto acting as the City's agent as owner of the Property to sign any planning and development, infrastructure, servicing or any other applications and agreements including agreements with Toronto Hydro, Enbridge Gas or any third-party utility provider, required for the development of the Property, except for any environmental applications or agreements, or alternatively that the City itself execute such documentation solely in its capacity as land owner, provided Waterfront Toronto agrees to assume all obligations including costs and liabilities under such documentation and subject to such other terms satisfactory to the Deputy City Manager, Cluster B, and in a form satisfactory to the City Solicitor.

12.  City Council authorize severally the Chief Corporate Officer and the Deputy City Manager, Cluster B to execute and deliver the Sale Transaction Agreements and Undertaking Agreement and all such documentation described in Recommendations 9 and 11 above, on behalf of the City.

13.  City Council authorize the public release of the confidential information in Confidential Attachment 4 to the report (November 23, 2016) from the Deputy City Manager, Cluster B, upon the completion of the development of the publicly owned lands in East Bayfront as determined by the Deputy City Manager, Cluster B.

14.  City Council direct that the confidential information contained in Confidential Attachment 5 to the report (November 23, 2016) from the Deputy City Manager, Cluster B remain confidential in its entirety as it relates to the security of property belonging to the City.

15. City Council authorize the City Solicitor to complete any of the transactions contemplated under the Sale Transaction Agreements on behalf of the City, except to the extent such obligations have been directed by the Chief Corporate Officer to Waterfront Toronto to undertake, including amending closing dates and other dates, and amending and waiving terms and conditions, on such terms that the City Solicitor deems advisable.

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

This report concerns the sale of a 0.57 acre City-owned property in the East Bayfront to George Brown College (GBC) for the development of an academic building focused on technology and innovation.  The property, identified as Block 3 in "Dockside" on Map 1, is located on the south side of Queens Quay, between Lower Jarvis Street and Lower Sherbourne Street, immediately north of an existing George Brown College academic building. The development will also include a non-profit child care centre, partially funded through Waterfront Toronto (WT), and owned and operated by George Brown College.  George Brown College has committed to starting the planning process for the new building immediately following the sale of the property, with the goal of being under construction in the next two to four years. 

Staff have reported on this property twice: in 2009, to grant George Brown College a five-year ground lease Option on the site; and, in November 2015, to obtain Council approval to consider a fee simple conveyance offer in addition to a ground lease offer.  George Brown College has communicated its clear preference for a fee simple conveyance.  Waterfront Toronto, the City's revitalization lead in the East Bayfront, has completed a comprehensive evaluation of George Brown College's two offers and is recommending the City accept the fee simple conveyance offer. 

In this report, staff provide the results of their review of Waterfront Toronto's recommendation, and seek authorization to enter into an Agreement of Purchase and Sale (APS) with the City as vendor and George Brown College as purchaser, subject to the major terms summarized in Attachment 1.  As part of the sale, various use and ownership controls are proposed to ensure the property remains used for institutional/academic purposes with a focus on technology and innovation, and owned by George Brown College.  

Staff also seek authority to enter into a companion agreement, an Undertaking Agreement (UA) between Waterfront Toronto and the City.  The Undertaking Agreement addresses Waterfront Toronto's direct obligations to the City, including oversight of the George Brown College development and parameters for the delivery of the child care centre, among other matters.  The proposed major terms of the Undertaking Agreement are summarized in Attachment 2.

In addition to the Agreement of Purchase and Sale and Undertaking Agreement, the transaction includes a Development Agreement (DA) between Waterfront Toronto and George Brown College.  The major terms of the Development Agreement are summarized in Attachment 3.  Although the City is not a party to this agreement, many of the City's waterfront revitalization objectives are secured through this agreement.

In accordance with the governance structure for Waterfront Toronto, first approved by Council in 2004, the proceeds of the sale will flow to Waterfront Toronto for reinvestment in waterfront revitalization.  This is explained in greater detail in the last section of the report, and is consistent with previous Council decisions on land transactions in the East Bayfront, including the existing George Brown College site (Blocks 4 and 5, Dockside - 2009), the Parkside/Great Gulf site (2009) and the Bayside/Hines site (2010).

In summary, staff are supporting Waterfront Toronto's recommendation that Block 3 be sold to George Brown College. As a public institution, George Brown College serves the public interest and satisfies the City's objective of retaining public ownership of non-residential waterfront sites. The existing George Brown College health sciences building has greatly contributed to the early success of the East Bayfront, and there is every expectation that an expanded George Brown College campus will further reinforce revitalization objectives for this precinct.  In particular, the proposed emphasis on technology and innovation aligns very well with Waterfront Toronto's efforts to create an innovation-focused employment corridor in the eastern waterfront.  Accordingly, staff are recommending the sale of the Dockside Block 3 site to George Brown College.

The Executive Committee recommends that:

1.  City Council authorize the Executive Director, Engineering and Construction Services, to proceed with the new approach for the implementation of the Revised Strategic Rehabilitation Plan for the F.G. Gardiner Expressway, as described in the section titled "New Approach for Implementation of the Revised Strategic Rehabilitation Plan" in the report (November 23, 2016) from the Deputy City Manager, Cluster B and the Deputy City Manager and Chief Financial Officer.

2.  City Council direct the General Manager, Transportation Services, to include the revised cash flows associated with the new approach to the implementation of the Revised Strategic Rehabilitation Plan for the F.G. Gardiner Expressway within the Transportation Services 2017-2026 Capital Budget and Plan for Council's consideration.

3.  City Council direct the Executive Director, Financial Planning, the Executive Director, Engineering and Construction Services, and the General Manager, Transportation Services, to report annually on the status of the implementation of the Revised Strategic Rehabilitation Plan for the F.G. Gardiner Expressway.

This report provides a summary of the current issues and concerns surrounding the previously approved procurement strategy for implementation of the F.G. Gardiner Expressway Revised Strategic Rehabilitation Plan and recommends approval of a new implementation approach that would permit the City to proceed as quickly as possible with the F.G. Gardiner Expressway's urgent rehabilitation needs.

The new approach involves:

1.  Implementing the necessary rehabilitation work for the "elevated" section, west of Cherry Street, and the entire "at-grade" section of the Expressway using multiple contracts under an accelerated design-bid-build approach;

2.  Incorporating construction contract terms and conditions to reduce schedule risk and promote additional opportunities for acceleration of the work; and,

3.  Undertaking the preliminary engineering design for the implementation of the Gardiner East Environmental Assessment Hybrid Alternative Design 3, incorporating, where feasible, the scope of work for relevant elements of other large projects planned within and adjacent to the Gardiner East work zone, in order to assess project risks and construction schedule before deciding on an appropriate project delivery approach.

The new approach recommended in this report provides for the phasing of the rehabilitation based on the current structural condition of the Expressway, incorporates proven techniques for mitigating the anticipated traffic congestion associated with this scale of construction, and provides the necessary additional technical information required to fully assess project risks and opportunities to advance the construction of other projects within the work zone of the eastern section of the Gardiner Expressway as one integrated project.

The Executive Committee recommends that:

1.  City Council, in its capacity as Shareholder of Toronto Community Housing Corporation (TCHC):

a.  pursuant to Section 7.4.1(a) of the City's Amended and Restated Shareholder Direction to Toronto Community Housing Corporation, approve the term sheets attached as Attachments 1 and 2 to the report (November 17, 2016) from the Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer, between Toronto Community Housing Corporation and Infrastructure Ontario (collectively referred to herein as  the "Term Sheets"):

i.  for refinancing totalling $310 million in order to address the renewal of 32 Toronto Community Housing Corporation mortgages totalling $93.6 million, as well as obtaining incremental financing of $216 million (less transaction costs and legal fees) on the terms and conditions contained in Attachment 1 to the report (November 17, 2016) from the Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer; and

ii.  financing a $10 million loan on a property located at 180 Sackville St. on the terms and conditions contained in Attachment 2 to the report (November 17, 2016) from the Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer;

b.  approve the extension of Toronto Community Housing Corporation's mortgage subsidy for the 32 properties identified in Attachment 1 to the report (November 17, 2016) from the Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer, based on the current monthly mortgage payment, for a period of 30 years following the transaction closing;

both on condition that:

i.  the net amount of incremental financing be deposited to a new special reserve other than the State of Good Repair Fund dedicated to the repair or replacement of building components with a useful life of at least 30 years; and

ii.  Toronto Community Housing report annually, through Toronto Community Housing Corporation's Annual Report to Council, on the status and use of funding deposited to such special reserve;

c.  authorize the Deputy City Manager and Chief Financial Officer or his delegate to execute on behalf of the shareholder an amendment to the agreement among the City, Toronto Community Housing Corporation and Infrastructure Ontario which will provide for an amended City guarantee for the payment of all periodic principal and interest payments payable by Toronto Community Housing Corporation to Infrastructure Ontario under the financing agreements authorized by Council in 2013, 2014, 2015 and 2016 on conditions satisfactory to the Deputy City Manager and Chief Financial Officer or his delegate and in a form approved by the City Solicitor.

2.  City Council deem the foregoing guarantee to be in the interests of the City.

3.  City Council, in its capacity as Service Manager under the Housing Services Act, 2011 (the HSA):

a.  grant Service Manager consent to Toronto Community Housing Corporation pursuant to the Housing Services Act to mortgage those properties described in Appendix 1 of the Term Sheet attached as Attachment 1 to the report (November 17, 2016) from the Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer, that require Service Manager consent to secure the obligations of Toronto Community Housing Corporation to Infrastructure Ontario described in that Term Sheet;

b.  authorize the Deputy City Manager and Chief Financial Officer or his delegate to execute on behalf of the City as Service Manager an amendment to the agreement among the City, Toronto Community Housing Corporation and Infrastructure Ontario which will provide for an amended City consent to the lender security over City subsidies payable with respect to the properties mortgaged in favour of Infrastructure Ontario under mortgage financing transactions authorized by Council in 2013, 2014, 2015 and 2016 by including the  mortgaged properties described in the Term Sheets, on terms and conditions satisfactory to the Deputy City Manager and Chief Financial Officer or such delegate and in a form approved by the City Solicitor;

c.  authorize the General Manager, Shelter, Support and Housing Administration to:

i.  request all necessary third party waivers, consents or other authorizations which the Service Manager is required to seek in connection with the transactions contemplated by the Term Sheet; and

ii.  provide the necessary notice to the Minister of Municipal Affairs and Housing pursuant to the Housing Services Act.

4.  City Council consent pursuant to subsection 453.1(6) of the City of Toronto Act, 2006 to any mortgage or charge given by Toronto Community Housing Corporation to Infrastructure Ontario with respect to any of the properties described in the Term Sheets attached to the report (Novmeber 17, 2016) from the Deputy City Manager, Cluster A, and the Deputy City Manager and Chief Financial Official, and that where required, the City Clerk provide a certificate, in registerable form, pursuant to subsection 453.1(9) of the City of Toronto Act, 2006.

5.  City Council authorize the City Manager or the Deputy City Manager and Chief Financial Officer to execute and deliver such other notices, consents, authorizations, approvals and agreements on behalf of the City as shareholder or Service Manager in order to facilitate the transactions described in the Term Sheets attached to the report (Novmeber 17, 2016) from the Deputy City Manager, Cluster A, and the Deputy City Manager and Chief Financial Official, including, without limitation, amendments to the Operating Agreement between the City and Toronto Community Housing Corporation.

In November, 2013, City Council approved the Toronto Community Housing Corporation's ("TCHC") Ten-Year Capital Financing Plan. This plan identified the need for approximately $2.6 billion of capital maintenance funding to bring building component failures down to a manageable level and avoid the need to close public housing units.

This plan was premised on the availability of equal funding from the City, the Provincial and the Federal governments. Over the first three years of the plan (2013-2015), the City has provided direct funding as well as mortgage subsidies and mortgage repayment guarantees that have resulted in a total of $624 million of funding support for this plan.

After relying exclusively on City funding for the initial years, the plan assumed that funding from other orders of government would become available to fund the plan from 2017 onwards. However, neither the Federal or Provincial governments have provided any funding support for the Toronto Community Housing Corporation Capital Financing Plan; nor have they made any commitments of future support.

Toronto Community Housing Corporation has identified the potential for raising a further $226.4 million for capital maintenance through the refinancing of a further group of mortgages that require renewal in 2016 and through a new loan on a recently completed building. In the absence of Federal and Provincial support, this financing is necessary to continue Toronto Community Housing Corporation's capital maintenance program in 2017.

In accordance with the approach taken with the previous tranches of mortgage refinancing, Toronto Community Housing Corporation has requested that the City provide an explicit repayment guarantee to the lender, Infrastructure Ontario and that the City extend its existing mortgage subsidies for the refinanced properties, at their current levels, for a further 15-30 years. Therefore, the gross annual impact of these subsidies on the City's operating budget will remain unchanged. However, as discussed in earlier staff reports, the Federal/Provincial funding that supports these City subsidies to Toronto Community Housing Corporation is forecast to substantially diminish over time.

This report presents a proposed Debt Management Policy prepared by Toronto Community Housing Corporation staff that sets out the appropriate uses for various forms of debt as well as criteria for assessing overall debt limits. One of the principal criteria set out in the Policy for permanent mortgage debt is that Toronto Community Housing Corporation maintain a Debt Service Coverage Ratio ("DSCR") of 1.1 between Toronto Community Housing Corporation's annual net operating cash flow and its annual debt service costs.

According to its 10-year Operating Budget forecast, Toronto Community Housing Corporation that will meet this criteria in 2017. However, even with the requested mortgage subsidy extensions, Toronto Community Housing Corporation is forecast to fall below this minimum Debt Service Coverage Ratio beginning in 2018 because of the rapid growth in utility costs and Toronto Community Housing Corporation's very limited ability to recover these increased costs from tenants.

This report nevertheless recommends that Council approve the requested financing. This approval will allow Toronto Community Housing Corporation to fund the capital maintenance works that are necessary to avoid the near-term closure of additional units and to satisfy the City's mandated requirement to maintain a minimum stock of rent-geared-to-income housing units.

However, it is clear that substantial new measures will need to be implemented in order to ensure that Toronto Community Housing Corporation's debt repayment commitments can be met and that future capital maintenance can be funded in the absence of funding support from other orders of government.

Long-term financial sustainability was one of the key challenges addressed by the Mayor's Task Force on Toronto Community Housing Corporation, which published its final report in January, 2016. In July, 2016, Council directed staff to prepare a plan for implementing a number of key "Transformative Ideas" and recommendations provided by Task Force for Toronto Community Housing Corporation and to provide Council with the financial and budget implications associated with this plan in Q2 2017. It is anticipated that this plan will incorporate steps for addressing Toronto Community Housing Corporation's operating and capital maintenance funding pressures.

The Executive Committee recommends that:

Conference Centre at Exhibition Place

1.  City Council authorize the extension of the repayment term of the capital loan to the Exhibition Place for the conference centre, by an additional five years, with a revised amortization period ending in 2040 for the full loan balance amount.

Leaside Memorial Gardens Arena

2.  City Council:

a.  authorize a one-time exception for the 2014 operating deficit incurred by the Leaside Memorial Gardens Arena (LMGA) from a clause in the Loan Agreement with Leaside Memorial Gardens Arena (the "Leaside Memorial Gardens Arena Loan Agreement") which requires that any annual operating deficits be added to the principal balance of the City loan to Leaside Memorial Gardens Arena;

b.  authorize a one-time exception for the 2015 operating surplus ("Excess Revenue") incurred by the Leaside Memorial Gardens Arena from a clause in the Leaside Memorial Gardens Arena Loan Agreement which requires that Excess Revenue be deposited into the Leaside Memorial Gardens Arena Debt Service Reserve Fund; and

c.  authorize an amendment to the Leaside Memorial Gardens Arena Loan Agreement to allow for Excess Revenue to be determined and deposited into the Debt Service Reserve Fund at year-end, rather than at the four Payment Dates currently provided for in the Agreement.

Theatre Centre

3.  City Council:

a.  consent to an extension of the repayment terms of the Theatre Centre's outstanding loan with its Lender, by deleting the requirement in the Tripartite Guarantee Agreement between the City, the Theatre Centre and its lender that the maximum amount of the loan outstanding shown in Column II be achieved by the dates shown in Column I, and replacing with a requirement that the revised maximum amount of the loans outstanding shown in Column IV be achieved by the revised dates shown in Column III:

and

b.  authorize the corresponding extension to the term of the City's loan guarantee to the Theatre Centre from the period ending December 31, 2017 to December 31, 2021.

Toronto Symphony Orchestra

4.  City Council authorize an amendment and extension of a line of credit guarantee to the Toronto Symphony Orchestra (TSO) by an additional $2.0 million, to a total of $5.0 million (inclusive of all interest and costs payable by the Toronto Symphony Orchestra) on the same terms and conditions and for the same term as the City's current guarantee to the Toronto Symphony Orchestra, subject to the Toronto Symphony Orchestra reducing its accumulated deficit by $2.0 million.

Evergreen

5.  City Council consent to Evergreen establishing a $1.0 million operating line of credit with its lender, which line of credit is to be guaranteed by a third party, subject to the following:

a.  such line of credit and guarantee being subordinate to an existing capital loan guaranteed by the City;

b.  the Deputy City Manager and Chief Financial Officer is satisfied with the terms of the line of credit and the third party guarantee; and

c.  the Toronto and Region Conservation Authority (TRCA) consents to the line of credit.

6.  City Council authorize the appropriate City officials to enter into any documents and agreements necessary to give effect to Recommendations 1 through 5, on such terms and conditions satisfactory to the Deputy City Manager and Chief Financial Officer and in a form acceptable to the City Solicitor.

This report provides for a number of amendments to existing loans and loan guarantees extended by the City to third parties.  The amendments include:

1.  extending the repayment term of the City loan made to Exhibition Place for the development of the Conference Centre by five years;

2.  making a one-time exception to enforcing an operating deficit penalty provision in the loan agreement with the Leaside Memorial Gardens Arena (LMGA);

3.  extending the term of a loan guarantee to the Theatre Centre by four years;

4.  increasing the amount of the line of credit guarantee to the Toronto Symphony Orchestra (TSO); and

5.  consenting to a request made by Evergreen to permit it to establish a $1.0 million operating line of credit with its bank, which would be guaranteed by a third party.

The Deputy City Manager and Chief Financial Officer has determined that these amendments will enhance the long-term viability of these entities without unduly compromising the City's financial interests.

The Executive Committee recommends that:

1.  City Council authorize that the 2017 interim levy for all property classes be based on 50 percent of the total 2016 taxes billed for each property, adjusted, as necessary, to reflect any additional taxes added to the previous year's taxes as a result of assessment added to the tax roll.

2.  City Council authorize that the interim levy apply to assessments added to the tax roll for 2016 that were not on the assessment roll when the by-law was passed.

3.  City Council authorize that:

a.  the interim bill payment due dates for property tax accounts paid on the eleven (11) instalment pre-authorized tax payment plan be: February 15, March 15, April 18, May 15, and June 15, 2017;

b.  the interim bill payment due date for the two (2) instalment pre-authorized tax payment plan be March 1, 2017; and

c.  the interim bill payment due dates for all other property tax accounts on the regular instalment option or on the six (6) instalment pre-authorized tax payment plan be: March 1, April 3, and May 1, 2017.

4.  City Council grant authority to introduce the necessary bill in Council on December 13 and 14, 2016, providing for the levying and collection of the 2017 interim taxes prior to the adoption of the estimates for 2017, which by-law, when enacted, will be effective as of January 1, 2017.

This report requests Council authority to adopt the necessary by-law to levy interim property taxes for all property classes for 2017 and to prescribe applicable interim bill payment due dates.  The 2017 interim levy will raise approximately $2.0 billion for City purposes, and will provide for the cash requirements of the City until such time as the 2017 Operating Budget and 2017 final property tax levy are approved by Council.

The Executive Committee recommends that:

1.  City Council adopt the revised purpose and the revised Criteria Sheet for the 'Gardiner West Public Realm Improvements Reserve Fund' account (XR3034), as provided in Appendix 1 to the report (November 14, 2016) from the Deputy City Manager and Chief Financial Officer.

2.  City Council adopt the revised purpose and the revised Criteria Sheet for the 'Social Housing Stabilization Reserve' account (XQ1106), as provided in Appendix 2 to the report (November 14, 2016) from the Deputy City Manager and Chief Financial Officer.

3.  City Council authorize the transfer of funds in the amount of $1,274,256 from the 'Hounslow Heath Reserve Fund' account (XR1602) to the 'Land Acquisition Reserve Fund' account (XR1012), and direct the 'Hounslow Health Reserve Fund' account to be closed and deleted from Chapter 227.

4. City Council authorize the transfer of the year-end balances (with the exception of development charges collected in respect of electrical power services) of the obligatory reserve fund accounts currently in the Development Charges Pre 1999 Reserve Fund Group, to the corresponding obligatory reserve fund accounts in the current Development Charges Reserve Fund Group.

5.  City Council authorize the Deputy City Manager and Chief Financial Officer to transfer the residual balances relating to development charges collected in respect of electrical power services and contained in the Development Charges Pre 1999 Reserve Fund Group in Schedule 11 of Chapter 227, to Toronto Hydro-Electric System Ltd. ("Toronto Hydro").

6.  City Council direct the Development Charges Pre 1999 Reserve Fund Group be closed and deleted from Chapter 227.

7.  City Council direct the following accounts, which have zero balances, be closed and deleted from Chapter 227:

8. City Council authorize the necessary amendments to Chapter 227 in accordance with Recommendations 1 to 7.
 
9.  City Council direct the City Solicitor to introduce any necessary bills to give effect to Recommendations 1 to 8.

This report seeks Council approval to implement a number of administrative amendments to City of Toronto Municipal Code Chapter 227, Reserves and Reserve Funds ("Chapter 227").  These amendments include refining criteria of existing accounts, deleting accounts which are no longer required, and merging existing accounts within Chapter 227.

The Executive Committee recommends that:

1.  City Council direct the Deputy City Manager and Chief Financial Officer and the Chief Information Officer:

a.  to report to the April 19, 2017 Executive Committee meeting on an up-to-date Progress Report on the Open Data Strategic Plan; and

b. to report to the June 19, 2017 Executive Committee meeting with a definitive assessment with tangible-results and firm delivery-commitments.

Open Data is a key strategic pillar in the delivery of open and transparent government. Open Data is also a foundation that will help drive innovation and new opportunities for both the delivery of City services and the communities and people that the City serves. The City of Toronto is one of the Canadian pioneers of municipal Open Data and consistently ranks high in Open Data municipal assessments.

Earlier in 2016, both the Executive Committee and Government Management Committee approved several motions to improve and further extend the effectiveness of the City's Open Data initiative and move towards the development of an Open Data Strategic Plan.

The City of Toronto has subsequently made incremental progress to improve Open Data. This report summarizes recent accomplishments and the planned development of an Open Data Strategic Plan in 2017.

The Executive Committee recommends that:

1.  City Council request the Director, Equity, Diversity and Human Rights, the General Manager, Economic Development and Culture, and other City Divisions and Agencies as necessary, to support Reconciliation Canada's efforts to host a Reconciliation Walk on September 24, 2017, in Toronto, including any in kind support as necessary.

At its meeting of November 3, 2016, the Aboriginal Affairs Committee considered a presentation from  Karen Joseph, Chief Executive Officer, Reconciliation Canada on the Walk for Reconciliation.

The Executive Committee recommends that:

1.  City Council amend the 2016 Council Approved Capital Budget for Economic Development and Culture by reducing the 2016 Business Improvement Area Equal Share Funding Project (CED084) project cost and cash flow by $0.200 million from $4.217 million gross ($2.281 million net) to $4.017 million gross ($2.181 million net).

2.  City Council amend the 2016 Council Approved Capital Budget for Economic Development and Culture by adding a new capital project, PATH Wayfinding Project, with cash flow of $0.100 million gross, funded by debt transferred from the 2016 Equal Share Funding Project in 2016, to provide to the Financial District Business Improvement Area 50 percent of the cost to develop technical designs for new signage and mapping in the PATH underground walkway system such that the total City contribution does not exceed $0.100 million.

On June 22, 2016 the Financial District Business Improvement Area presented concepts and a work plan for PATH wayfinding signage improvements to the Economic Development Committee.  The Committee requested the General Manager, Economic Development and Culture to report back on the matter to its October 24, 2016 meeting.

This report recommends that funding from the 2016 Capital Budget for Economic Development and Culture be reallocated to the Financial District Business Improvement Area to share the cost of the technical design phase of the PATH wayfinding project.

The Executive Committee recommends that:

1.  City Council consider the report (November 3, 2016) from the Deputy City Manager and Chief Financial Officer and the General Manager, Toronto Water concurrently with the 2017 - 2026 Toronto Water Capital Budget and Plan and the 2017 Toronto Water Operating Budget.

Rates and Fees

2.  City Council adopt:

a. Effective January 1, 2017, the combined water and wastewater consumption rates charged to metered consumers as shown below and in Appendix B to the report (November 3, 2016) from the Deputy City Manager and Chief Financial Officer and the General Manager, Toronto Water;

b. Effective January 1, 2017, an increase of 5 percent to the water and wastewater consumption rates charged to flat rate consumers, as set out in Appendix B to the report (November 3, 2016) from the Deputy City Manager and Chief Financial Officer and the General Manager, Toronto Water;

c. Effective January 1, 2017, the water and wastewater service fees, as set out in Appendix C to the report (November 3, 2016) from the Deputy City Manager and Chief Financial Officer and the General Manager, Toronto Water;

d. Effective May 1, 2017, water service fees Ref. No. 1, 2 and 5, and wastewater service fee Ref. No. 4, 5 and 6, as shown below and in Appendix C to the report (November 3, 2016) from the Deputy City Manager and Chief Financial Officer and the General Manager, Toronto Water. Until May 1, 2017, the current fees will remain in effect;

e. Effective January 1, 2017, the water rebate for eligible low-income seniors and low-income disabled persons be set at a rate of $1.0867 /m3, representing a 30 percent reduction from the Block 1 rate (paid on or before the due date).

3.  City Council authorize that the necessary amendments be made to Municipal Code Chapter 441 - Fees and Charges, Municipal Code, Chapter 849 - Water and Sewage Services and Utility Bill, and Municipal Code Chapter 681- Sewers, and any other necessary Municipal Code Chapters as may be required, to give effect to these Recommendations.

4.  City Council grant authority to the City Solicitor to introduce any necessary Bills required to implement these recommendations, subject to any necessary refinements, including stylistic, format and organization, as may be identified by the City Solicitor, the Deputy City Manager and Chief Financial Officer and the General Manager, Toronto Water.

Capital Budget

5.  City Council approve the 2017 Recommended Capital Budget for Toronto Water with a total project cost of $1.989 billion, and 2017 cash flow of $859.144 million and future year commitments of $4.180 billion comprised of the following:

a. New Cash Flow Funds for:

i. 248 new / change in scope sub-projects with a 2017 total project cost of $1.989 billion that requires cash flow reduction of $143.338 million in 2017 and future year cash flow commitments of $413.187 million for 2018; $365.790 million for 2019; $334.438 million for 2020; $197.786 million for 2021; $179.385 million for 2022; $187.358 million for 2023; $188.793 million in 2024; and $93.968 million in 2025;

ii. 328 previously approved sub-projects with a 2017 cash flow of $872.903 million; and future year cash flow commitments of $598.830 million for 2018; $446.006 million for 2019; $281.852 million for 2020; $244.975 million for 2021; $178.369 million for 2022; $133.333 million for 2023; $108.576 million in 2024; and $55.630 million in 2025;

b. 2016 approved cash flow for 178 previously approved sub-projects with carry forward funding from 2016 into 2017 totalling $129.579 million.

6.  City Council approve the 2018 - 2026 Recommended Capital Plan for Toronto Water totalling $7.170 billion in project estimates, comprised of $175.137 million for 2018; $500.086 million for 2019; $693.984 million for 2020; $781.039 million for 2021; $846.095 million for 2022; $910.094 million for 2023; $996.937 million for 2024; $1.125 billion for 2025 and $1.142 billion in 2026.

7.  City Council consider the operating costs/(savings) of ($0.114) million net in 2017; $3.233 million net in 2018; $3.631 million net in 2019; $0.483 million net in 2020; $0.385 million net in 2021; $1.038 million net in 2022; ; $1.038 million net in 2022; $0.050 million net in 2023; and $1.0 million net in 2024, resulting from the approval of the 2017 Capital Budget for inclusion in the 2017 and future year operating budgets.

8.  City Council direct that all sub-projects with third party financing be approved conditionally, subject to the receipt of such financing in 2017 and if such funding is not forthcoming, their priority and funding be reassessed by City Council relative to other City-financed priorities and needs.

9.  City Council request the Deputy City Manager and Chief Financial Officer in consultation with the General Manager, Toronto Water to advance the 2018 cashflow for the Basement Flooding projects into 2017, should it become evident that greater than planned volume of work can be completed, and that the 2018– 2026 budgeted cash flows be adjusted accordingly as part of the 2018 budget process.

10. City Council consider the 2017 - 2026 Recommended Capital Budget and Plan - Toronto Water concurrently with the report (November 3, 2016) from the Deputy City Manager and Chief Financial Officer and the General Manager, Toronto Water.

Operating Budget

11. City Council approve the 2017 Recommended Operating Budget for Toronto Water of $443.206 million gross, and $778.723 million net in capital-from-current contribution for the following services:

12. City Council approve the 2017 service levels for Toronto Water as outlined on pages 18, 21 and 24 of the 2017 Staff Recommended Operating Budget Notes - Toronto Water, and associated staff complement of 1,752.65 positions.

13. City Council direct the information contained in Confidential Attachment 1 to the 2017 Staff Recommended Operating Budget Notes - Toronto Water, remain confidential until the outcome of City Council's decision has been communicated to Unions and affected staff.

14. City Council consider the 2017 Staff Recommended Operating Budget - Toronto Water concurrently with the report (November 3, 2016) from the Deputy City Manager and Chief Financial Officer and the General Manager, Toronto Water.

This report presents the recommended 2017 water and wastewater consumption rates and service fees arising from concurrent adoption of the recommended 2017 Toronto Water Operating and Capital Budgets.   

Council, as part of 2015 budget approval process, endorsed that the 10 year capital plan be premised on 8 percent water and wastewater consumption rate increases in 2015 and 2016 followed by successive 5 percent increases in 2017 and 2018, in order to reinstate approximately $1 billion in capital funding lost from a systematic decline in consumption and to fund emerging projects.

Accordingly, this report recommends a 5 percent water and wastewater consumption rate increase for all metered and flat rate consumers, effective January 1, 2017.  In addition, this report recommends inflationary fee increases for certain water and wastewater services, as well as increases reflecting the actual cost for those services based on procurement contracts.

The Budget Committee submits its recommendations on the 2017 Rate Supported Budgets - Toronto Water and Recommended 2017 Water and Wastewater Consumption Rates and Service Fees.

The Executive Committee recommends that:

Rates and Fees

1.  City Council delete the recommended 5.2 percent increase in the Single Family Residential Rate in Appendix A to the report (November 15, 2016) from the General Manager, Solid Waste Management Services and the Deputy City Manager and Chief Financial Officer, and adopt a 2 percent increase to the Single Family Residential Rate, and that the reduction in revenue be offset by a reduction in contributions to the Solid Waste Management reserves.

2.  City Council delete the recommended $23.00 Garbage Bin Downsizing Exchange Fee in Appendix A to the report (November 15, 2016) from the General Manager, Solid Waste Management Services and the Deputy City Manager and Chief Financial Officer, and that the reduction in revenue be offset by a reduction in contributions to the Solid Waste Management reserves.

3.  City Council adopt, as amended by Recommendations 1 and 2 above, a program of increases on all Solid Waste Rates and Fees in 2017 as set out in Appendix A to the report (November 15, 2016) from the General Manager, Solid Waste Management Services and the Deputy City Manager and Chief Financial Officer, to become effective on January 1, 2017, including a five year Solid Waste Management Services (SWMS) Rate and Fee Plan from 2017 to 2021 for rate setting and planning purposes.

4.  City Council amend the Fee Description in Reference No. 135 of Appendix A of Schedule 1 to Chapter 441, Fees and Charges, of the Toronto Municipal Code by deleting the Reference Name "Roll-Off Services Fee-General haulage provision of bins and haulage" and replacing it with "Solid Waste Miscellaneous Collection, Haulage and Other Services".

5.  City Council consider the report (November 15, 2016) from the General Manager, Solid Waste Management Services and the Deputy City Manager and Chief Financial Officer, concurrently with the 2017 - 2026 Recommended Capital Budget and Plan and the 2017 Recommended Operating Budget for Solid Waste Management Services Division.

6.  City Council authorize the General Manager, Solid Waste Management Services to negotiate and amend the Agreement between the City of Toronto and Rehrig Pacific Co., dated December 10, 2007 (in connection with Purchase Order No. 47013061) to allow for an additional $3.5 million for the supply and maintenance of garbage and recycling bins for residential and non-residential customers until November 30, 2017, on terms and conditions satisfactory to the General Manager, Solid Waste Management Services and in a form satisfactory to the City Solicitor.

Capital Budget

7.  City Council approve the 2017 Recommended Capital Budget for Solid Waste Management Services with a total project cost of $27.719 million, and 2017 cash flow of $105.451 million and future year commitments of $185.188 million comprised of the following:

a.  New Cash Flow Funds for:

1.  28 new / change in scope sub-projects with a 2017 total project cost of $27.719 million that requires cash flow of $(10.437) million in 2017 and future year cash flow commitments of $35.186 million for 2018; $9.186 million for 2019; $(10.672) million for 2020; $(0.870) million for 2021; $(1.174) million for 2022; $1.000 million for 2023; $1.000 million for 2024; $1.000 million for 2025; and $3.500 million for 2026.

2.  23 previously approved sub-projects with a 2017 cash flow of $114.214 million; and future year cash flow commitments of $48.939 million for 2018; $38.259 million for 2019; $28.694 million for 2020; $13.450 million for 2021; $15.175 million for 2022 and $2.515 million for 2023.

b.  2016 approved cash flow for 8 previously approved sub-projects with carry forward funding from 2016 into 2017 of $1.514 million and into 2018 of $160.

8.  City Council approve the 2018 - 2026 Recommended Capital Plan for Solid Waste Management Services totalling $378.131 million in project estimates, comprised of $22.643 million for 2018; $38.042 million for 2019; $40.465 million for 2020; $41.369 million for 2021; $40.432 million for 2022; $52.804 million for 2023; $47.302 million for 2024; $48.152 million for 2025 and $46.922 million in 2026.

9.  City Council consider the operating costs (savings) of $0.266 million net in 2017; $0.393 million net in 2018; $(0.703) million net in 2019; $0.109 million net in 2020; $(0.061) million net in 2021; $(0.065) million for 2022; $(0.018) million for 2023; $(0.072) million for 2024; and $(0.075) million for 2025 resulting from the approval of the 2017 Recommended Capital Budget for inclusion in the 2017 and future year operating budgets.

10.  City Council approve 10 new temporary capital positions for the delivery of 2017 capital projects and that the duration for each temporary position not exceed the life and funding of its respective projects / sub-projects.

11.  City Council consider the 2017 - 2026 Recommended Capital Budget and Plan - Solid Waste Management Services concurrently with the report (November 15, 2016) from the General Manager, Solid Waste Management Services and the Deputy City Manager and Chief Financial Officer.

Operating Budget

12.  City Council approve the 2017 Recommended Operating Budget for Solid Waste Management Services of $378.292 million gross, $25.270 million net contribution for the following services:

13.  City Council approve the 2017 service levels for Solid Waste Management Services as outlined on pages 17, 20, 23, 26 and 29 of the 2017 Staff Recommended Operating Budget Notes - Solid Waste Management Services, and associated staff complement of 1,113.7 positions.

14.  City Council approve the 2017 new user fees, technical adjustments to user fees, market rate user fee changes, rationalized user fees, and other fee changes above the inflationary adjusted rate for Solid Waste Management Services identified in Appendix 7 to the 2017 Staff Recommended Operating Budget Notes - Solid Waste Management Services, for inclusion in Municipal Code Chapter 441 "Fees and Charges".

15.  City Council direct that one-time funding of $18.313 million be transferred from the Waste Management Reserve Fund (XR1404) to the Solid Waste Vehicle Reserve (XQ1014) for the purpose of replacing 60 Class 8 collection vehicles and that this amount be repaid to the Waste Management Reserve Fund through maintenance related savings beginning in 2019.

16.  City Council consider the 2017 Recommended Operating Budget - Solid Waste Management Services concurrently with the report (November 15, 2016) from the General Manager, Solid Waste Management Services and the Deputy City Manager and Chief Financial Officer.

17.  City Council direct the City Solicitor to submit the necessary bills to City Council required to implement City Council's decision.

This report outlines the recommended 2017 Solid Waste Rates and Fees arising from the concurrent adoption of the 2017 Solid Waste Management Services (SMWS) Recommended Operating and Capital Budgets.

Recommended rate and fee increases will vary based on customer group. Table 1 highlights the recommended key Solid Waste Rates and Fees beginning January 1, 2017.

Table 1 – 2017 Recommended Rate and Fee Increases

The proposed blended 3.9 percent increase on SWMS Rates and Fees is anticipated to generate $11.259 million in additional revenue in 2017. This recommended increase is required to fund the necessary reserve contributions that would ensure sufficient funds to pay off the City's 10-year Debt Service issue Plan for SWMS, implement the Long-Term Waste Management Strategy ("Waste Strategy"), offset rapidly escalating vehicle maintenance costs and cover lost revenue. The recommended budget contains $8.433 million in efficiencies and new revenue enhancements representing 7.6 percent of SWMS variable expenses.

The 2017 Recommended Operating Budget is $378.3 million, with a $25.3 million reserve contribution, and the 2017 Recommended Capital Budget is $105.3 million – comprised of $103 million in new 2017 funding, as well as $1.7 million in funding carried forward from 2016 into 2017. These combined budgets reflect the cost to maintain the City Council approved service levels for SWMS.

A key priority for the SWMS Division for 2017 is the implementation of the Waste Strategy, which includes making advancements in waste reduction and further diversion opportunities as well as ensuring the long term fiscal sustainability of the Division. In keeping with Council Strategic Action #7 (Develop a Long-term Solid Waste Management Strategy), this report also discusses taking continued steps toward rate sustainability through consideration of further reductions to the Single Family Residential Solid Waste Rebate in 2017 as part of the City's Tax Supported Budget to be released later this year. Changes to the Solid Waste Rebate has no impact on the SWMS 2017 Rates and Fees increase or Budgets.

The Budget Committee submits its recommendations on the 2017 Rate Supported Budgets - Solid Waste Management Services and Recommended 2017 Solid Waste Rates.

The Executive Committee recommends that:

Capital Budget:

1.  City Council approve the 2017 Recommended Capital Budget for Toronto Parking Authority with a total project cost of $99.049 million, and 2017 cash flow of $128.335 million comprised of the following:

a.  New Cash Flow Funds for:

1.  28 new / change in scope sub-projects with a 2017 total project cost of $99.049 million that requires cash flow of $99.049 million in 2017; and

b.  2016 approved cash flow for 29 previously approved sub-projects with carry forward funding from 2016 into 2017 totalling $29.286 million.

2.  City Council approve the 2018 - 2026 Recommended Capital Plan for Toronto Parking Authority totalling $420.045 million in project estimates, comprised of $64.857 million for 2018; $65.139 million for 2019; $81.118 million for 2020; $40.297 million for 2021; $35.327 million for 2022; $36.659 million for 2023; $33.992 million for 2024; $29.856 million for 2025 and $32.800 million in 2026.

3.  City Council consider the operating savings of $7.635 million net in 2018; $2.960 million net in 2019; $2.967 million net in 2020; $3.808 million net in 2021; $0.961 million net in 2022; $1.460 million net in 2023, $2.275 million net in 2024; $1.390 million net in 2025; and $1.2 million net in 2026 resulting from the approval of the 2017 Recommended Capital Budget for inclusion in the 2017 and future year operating budgets.

4.  All sub-projects with third party financing be approved conditionally, subject to the receipt of such financing in 2017 and if such funding is not forthcoming, their priority and funding be reassessed by City Council relative to other City-financed priorities and needs.

Operating Budget:

5.  City Council approve the 2017 Operating Budget for Toronto Parking Authority of $92.637 million gross, ($63.414) million net for the following services:

6.  City Council approve the 2017 service levels for Toronto Parking Authority as outlined on pages 14, 17, and 19 of the 2017 Staff Recommended Operating Budget Notes - Toronto Parking Authority, and associated staff complement of 309 positions.

7.  City Council direct the Deputy City Manager and Chief Financial Officer and the President of the Toronto Parking Authority to report during the 2017 Budget process on an updated Income Sharing Renewal Agreement, and that the existing Income Sharing Agreement with the Toronto Parking Authority which expired on December 31, 2015, be extended until such time as Council considers an updated Income Sharing Agreement.

8.  City Council direct the General Manager, Transportation Services, in consultation with the President, Toronto Parking Authority, to report to the Budget Committee in the second quarter of 2017 on the revenue impacts of parking changes made by Community Councils in the last five years and processes for the Toronto Parking Authority to provide input into proposed parking changes which may impact revenue to be considered by Community Council.

9.  City Council direct the General Manager, Economic Development and Culture in consultation with the President, Toronto Parking Authority, to report to the Budget Committee in first quarter of 2017, on those areas where on-street parking rates have not increased significantly despite robust local economic growth.

10.  City Council request the President, Toronto Parking Authority to report to Budget Committee with a comprehensive review of the on-street and off-street parking rate structure in comparison to other jurisdictions and private parking lots.

This report is to advise that the report "2017 Rate Supported Budgets – Toronto Parking Authority", the 2017 Staff Recommended Budget Notes and Appendices will be on the agenda of the Budget Committee meeting of November 18, 2016 and Executive Committee meeting of December 1, 2016.  Materials will be distributed and posted online at www.toronto.ca/council  following the 2017 Rate Budget Launch on November 4, 2016.

The Budget Committee submits its recommendations on the 2017 Rate Supported Budgets – Toronto Parking Authority.

The Executive Committee recommends that:

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

The purpose of this report is to provide City Council with the operating variance for the nine-month period ended September 30, 2016 as well as year-end projections. This report also requests City Council's approval for amendments to the 2016 Approved Operating Budget between Programs that have no impact in the 2016 Approved Net Operating Budget.

Figure 1: Tax Supported Operating Net Variance Summary ($ Millions)

As noted in Figure 1 above, for the nine month period ended September 30, 2016, Tax Supported Operations reported a favourable net variance of $135.637 million or 5.0 percent and year-end projected net under-spending of $114.882 million or 2.9 percent.

The year-to-date net under-spending was primarily driven by:

- Over-achieved Municipal Land Transfer Tax revenue, primarily attributed to the increasing growth of sales ($78.964 million net).

- Under-expenditures by Transportation Services on salt usage in the winter maintenance program, and over-achieved permit / applications revenue ($17.391 million net).

- Toronto Police Service underspending in salaries and benefits due to unfilled positions and over-achieved revenues, primarily from one-time sources ($6.675 million net).

- Higher than planned Payments in Lieu of Taxes and lower than anticipated appeals ($6.006 million net).

As per the adopted recommendation by Executive Committee on September 22, 2016, City Planning and Toronto Building were separated from the summary section, in order to report directly to City Council on the fee - based portions of City Planning and Toronto Building's operating variances, separate from the tax-based operations.

- City Planning - a favourable year-to-date net variance of $5.918 million and the year-end projected favourable net variance of $5.970 million. In accordance with City Council's direction, the surplus will be transferred to Development Application Review Reserve Fund at year-end.

- Toronto Building - a favourable year-to-date net variance of $4.811 million, and the year-end projected favourable net variance of $6.809 million to be contributed to Building Code Act Service Improvement Reserve Fund, in accordance with the Building Code Act.

Underspending in other Programs and Agencies is primarily due to vacant positions. Majority of the vacant positions are expected to be filled by year-end. More detailed explanations at the program level can be found in the complement section of this report.

Based on this current trend, the City is projecting a net favourable year-end variance of $127.693 million or 3.2 percent. The key drivers for the expected net year-end position is largely due to the following:

- Higher than budgeted Municipal Land Transfer Tax revenues due to an overall higher number of property sales ($105.036 million net).

- Underspending in salaries within Toronto Police Service due to reduced hiring, and higher than budgeted revenues from receipt of one-time sources ($8.900 million net).

- Stronger than anticipated Payments In Lieu of Tax revenue, as a result of stronger than anticipated revenues ($6.006 million net).

- Under-expenditures within Engineering and Construction Services due to underspending in salaries and benefits from vacant positions until year-end ($3.486 million net).

- Underspending within Toronto Employment and Social Services as a result of lower than budgeted monthly caseload along with less than budgeted hydro costs ($2.848 million net).

The above favourable variance is partially offset by projected over-expenditures in the following areas:

- Unfavourable year-end variance within several Corporate Accounts, Non-Program Expenditures and Revenues, which include: Tax Deficiencies/Write offs, Supplementary Taxes, Toronto Hydro Dividend Income and Other Corporate Revenues, Pandemic Influenza Stockpiling ($21.497 million net).

- Higher than budgeted Workers Safety and Insurance Board (WSIB) costs arising from work-related cancer claims is projected to result in an unfavourable year-end variance in Fire Services ($6.641 million net).

- A decline in ridership volume contributed to the fare revenue shortfall, within Toronto Transit Commission: Conventional service, which is expected to result in unfavourable year-end variance ($5.133 million net).

- Unfavourable year-end projected variance within Toronto Transit Commission: Wheel-Trans service due to ever-increasing demand for service, which is continuously outpacing the expectations ($1.984 million net).

- Municipal Licensing and Standards is projecting an unfavourable net variance by year-end, primarily due to lower than budgeted revenues, as a result of the partial year implementation of the Ground Transportation Review (GTR) By-Law, and lower fee activity ($1.170 million net).

Figure 2: Rate Supported Net Variance Summary ($ Millions)

The year-to-date favourable net variance of $47.166 million is driven by the following:

- Year-to-date favourable variance of $41.528 million, in Toronto Water, comprised of lower gross expenditures of $20.237 million due to under-spending on salaries and benefits ($4.848 million) as a result of vacancies, lower than anticipated demand for chemicals, and lower transfer costs of bio solids as a result of the beneficial use for sludge. In addition revenues were higher than planned by $21.291 million due to increased demand for new and existing water services, as well as sewer services.

- A favourable net variance of $5.010 million, in Toronto Parking Authority, attributed to higher on-street and off-street revenues for garages in downtown fringe areas, which is partially offset by higher than planned property tax payments.

- Favourable net variance within Solid Waste Management Services of $0.629 million, comprised of lower gross expenditures of $18.318 million, primarily from underspending in salaries and benefits ($2.934 million) due to vacant positions and contracted services which include lower hauling costs as a result of lower fuel prices.

Collectively, Rate Supported Programs are projecting a favourable year-end net variance of $46.367 million. It is primarily driven by Toronto Water ($32.909 million) due to ongoing vacancies ($8.200 million), over-achieved revenue within Toronto Parking Authority at year-end of $4.360 million, and underspending within Solid Waste Management Services of $9.098 million due to vacant positions as well as under-expenditures in contracted services.

Figure 3: 2016 Year-To-Date Approved Complement by Vacancy Rate

Figure 4: 2016 Year-End Approved Complement Projections by Vacancy Rate.

Vacancy After Gapping percent is based on Operating Budget positions only.

- As of September 30, 2016, the City recorded an operating vacancy rate of 2.5 percent after gapping for an approved complement of 51,767.7 operating positions. The year-to-date vacancy rate for capital positions was 17.9 percent for an approved complement of 3,450.8 positions.

- The year-end operating vacancy rate after gapping is projected to be 0.3 percent for an approved complement of 51,272.6 operating positions. The forecasted vacancy rate for capital positions is projected to be 6.8 percent for an approved complement of 3,329.8 positions.

The detailed overview of the third fiscal quarter complement is provided in the Approved Complement Section of this report.

The purpose of this report is to provide City Council with the operating variance for the nine-month period ended September 30, 2016 as well as year-end projections. This report also requests City Council's approval for amendments to the 2016 Approved Operating Budget between Programs that have no impact in the 2016 Approved Net Operating Budget.

Figure 1: Tax Supported Operating Net Variance Summary ($ Millions) 

As noted in Figure 1 above, for the nine month period ended September 30, 2016, Tax Supported Operations reported a favourable net variance of $135.637 million or 5.0 percent and year-end projected net under-spending of $114.882 million or 2.9 percent.

The year-to-date net under-spending was primarily driven by:

- Over-achieved Municipal Land Transfer Tax revenue, primarily attributed to the increasing growth of sales ($78.964 million net).

- Under-expenditures by Transportation Services on salt usage in the winter maintenance program, and over-achieved permit / applications revenue ($17.391 million net).

- Toronto Police Service underspending in salaries and benefits due to unfilled positions and over-achieved revenues, primarily from one-time sources ($6.675 million net).

- Higher than planned Payments in Lieu of Taxes and lower than anticipated appeals ($6.006 million net).

As per the adopted recommendation by Executive Committee on September 22, 2016, City Planning and Toronto Building were separated from the summary section, in order to report directly to City Council on the fee - based portions of City Planning and Toronto Building's operating variances, separate from the tax-based operations.

- City Planning - a favourable year-to-date net variance of $5.918 million and the year-end projected favourable net variance of $5.970 million. In accordance with City Council's direction, the surplus will be transferred to Development Application Review Reserve Fund at year-end.

- Toronto Building - a favourable year-to-date net variance of $4.811 million, and the year-end projected favourable net variance of $6.809 million to be contributed to Building Code Act Service Improvement Reserve Fund, in accordance with the Building Code Act.

Underspending in other Programs and Agencies is primarily due to vacant positions. Majority of the vacant positions are expected to be filled by year-end. More detailed explanations at the program level can be found in the complement section of this report.

Based on this current trend, the City is projecting a net favourable year-end variance of $127.693 million or 3.2 percent. The key drivers for the expected net year-end position is largely due to the following:

- Higher than budgeted Municipal Land Transfer Tax revenues due to an overall higher number of property sales ($105.036 million net).

- Underspending in salaries within Toronto Police Service due to reduced hiring, and higher than budgeted revenues from receipt of one-time sources ($8.900 million net).

- Stronger than anticipated Payments In Lieu of Tax revenue, as a result of stronger than anticipated revenues ($6.006 million net).

- Under-expenditures within Engineering and Construction Services due to underspending in salaries and benefits from vacant positions until year-end ($3.486 million net).

- Underspending within Toronto Employment and Social Services as a result of lower than budgeted monthly caseload along with less than budgeted hydro costs ($2.848 million net).

The above favourable variance is partially offset by projected over-expenditures in the following areas:

- Unfavourable year-end variance within several Corporate Accounts, Non-Program Expenditures and Revenues, which include: Tax Deficiencies/Write offs, Supplementary Taxes, Toronto Hydro Dividend Income and Other Corporate Revenues, Pandemic Influenza Stockpiling ($21.497 million net).

- Higher than budgeted Workers Safety and Insurance Board (WSIB) costs arising from work-related cancer claims is projected to result in an unfavourable year-end variance in Fire Services ($6.641 million net).

- A decline in ridership volume contributed to the fare revenue shortfall, within Toronto Transit Commission: Conventional service, which is expected to result in unfavourable year-end variance ($5.133 million net).

- Unfavourable year-end projected variance within Toronto Transit Commission: Wheel-Trans service due to ever-increasing demand for service, which is continuously outpacing the expectations ($1.984 million net).

- Municipal Licensing and Standards is projecting an unfavourable net variance by year-end, primarily due to lower than budgeted revenues, as a result of the partial year implementation of the Ground Transportation Review (GTR) By-Law, and lower fee activity ($1.170 million net).

Figure 2: Rate Supported Net Variance Summary ($ Millions)

The year-to-date favourable net variance of $47.166 million is driven by the following:

- Year-to-date favourable variance of $41.528 million, in Toronto Water, comprised of lower gross expenditures of $20.237 million due to under-spending on salaries and benefits ($4.848 million) as a result of vacancies, lower than anticipated demand for chemicals, and lower transfer costs of bio solids as a result of the beneficial use for sludge. In addition revenues were higher than planned by $21.291 million due to increased demand for new and existing water services, as well as sewer services.

- A favourable net variance of $5.010 million, in Toronto Parking Authority, attributed to higher on-street and off-street revenues for garages in downtown fringe areas, which is partially offset by higher than planned property tax payments.

- Favourable net variance within Solid Waste Management Services of $0.629 million, comprised of lower gross expenditures of $18.318 million, primarily from underspending in salaries and benefits ($2.934 million) due to vacant positions and contracted services which include lower hauling costs as a result of lower fuel prices.

Collectively, Rate Supported Programs are projecting a favourable year-end net variance of $46.367 million. It is primarily driven by Toronto Water ($32.909 million) due to ongoing vacancies ($8.200 million), over-achieved revenue within Toronto Parking Authority at year-end of $4.360 million, and underspending within Solid Waste Management Services of $9.098 million due to vacant positions as well as under-expenditures in contracted services.

Figure 3: 2016 Year-To-Date Approved Complement by Vacancy Rate

Figure 4: 2016 Year-End Approved Complement Projections by Vacancy Rate.

Vacancy After Gapping percent is based on Operating Budget positions only.

- As of September 30, 2016, the City recorded an operating vacancy rate of 2.5 percent after gapping for an approved complement of 51,767.7 operating positions. The year-to-date vacancy rate for capital positions was 17.9 percent for an approved complement of 3,450.8 positions.

- The year-end operating vacancy rate after gapping is projected to be 0.3 percent for an approved complement of 51,272.6 operating positions. The forecasted vacancy rate for capital positions is projected to be 6.8 percent for an approved complement of 3,329.8 positions.

The detailed overview of the third fiscal quarter complement is provided in the Approved Complement Section of this report.

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

The purpose of this report is to provide City Council with the City of Toronto capital variance for the nine month period ended September 30, 2016, as well as projected actual expenditures to December 31, 2016. Furthermore, this report seeks Council's approval for in-year budget adjustments to the 2016 Approved Capital Budget.

The report also identifies 4 completed capital projects with a combined budget of $27.626 million that are ready to be closed and have been completed under budget, resulting in savings of $0.096 million in reserve funding that will be returned to their original funding sources.

Table 1: Nine Months and Year-End Projected Spending Rate

The spending pattern for the first nine months of 2016 is consistent with prior years. As detailed by City Program and Agency in Appendix 1, actual expenditures to year-end are expected to reach $3.175 billion or 67 percent of the total 2016 Approved Capital Budget. 13 of 33 City Programs and Agencies are projecting spending in excess of 70 percent by year-end: Tax Supported Programs project a spending rate of 64.8 percent to year-end; while Rate Supported Programs project year-end spending rate of 75.2 percent.

Figure 1: 2011 - 2016 Capital Spending Rate

(See Figure 1 titled 2011 - 2016 Capital Spending Rate

in the Summary Section of the report dated November 16, 2016

from the Deputy City Manager and Chief Financial Officer)

As shown in the Chart 1 above, City's capital spending at year-end is expected to reach $3.175 billion or 67 percent of 2016 Council Approved Capital Budget. Over the previous 5 years both the approved capital budget (including carry forward funding) and the actual spending have been trending upward at a relatively steady rate. However, the City's spending rate increased to 68.3 percent and projected 67 percent in 2015 and 2016 respectively, as a result of increased actual spending in some major capital projects. These include Toronto Transit Commission increased spending from 57.5 percent in year 2014 to projected spending of over 67 percent in 2016; Facilities Management increased spending from 49.7 percent in 2014 to projected spending of 54.2 percent in 2016 and Park, Forestry and Recreation increased spending from 50.5 percent in 2014 to projected 53.4 percent in 2016.

The purpose of this report is to provide City Council with the City of Toronto capital variance for the nine month period ended September 30, 2016, as well as projected actual expenditures to December 31, 2016. Furthermore, this report seeks Council's approval for in-year budget adjustments to the 2016 Approved Capital Budget.

The report also identifies 4 completed capital projects with a combined budget of $27.626 million that are ready to be closed and have been completed under budget, resulting in savings of $0.096 million in reserve funding that will be returned to their original funding sources.

Table 1: Nine Months and Year-End Projected Spending Rate

The spending pattern for the first nine months of 2016 is consistent with prior years. As detailed by City Program and Agency in Appendix 1, actual expenditures to year-end are expected to reach $3.175 billion or 67 percent of the total 2016 Approved Capital Budget. 13 of 33 City Programs and Agencies are projecting spending in excess of 70 percent by year-end: Tax Supported Programs project a spending rate of 64.8 percent to year-end; while Rate Supported Programs project year-end spending rate of 75.2 percent.

Figure 1: 2011 - 2016 Capital Spending Rate

(See Figure 1 titled 2011 - 2016 Capital Spending Rate

in the Summary Section of the report dated November 16, 2016

from the Deputy City Manager and Chief Financial Officer)

As shown in the Chart 1 above, City's capital spending at year-end is expected to reach $3.175 billion or 67 percent of 2016 Council Approved Capital Budget. Over the previous 5 years both the approved capital budget (including carry forward funding) and the actual spending have been trending upward at a relatively steady rate. However, the City's spending rate increased to 68.3 percent and projected 67 percent in 2015 and 2016 respectively, as a result of increased actual spending in some major capital projects. These include Toronto Transit Commission increased spending from 57.5 percent in year 2014 to projected spending of over 67 percent in 2016; Facilities Management increased spending from 49.7 percent in 2014 to projected spending of 54.2 percent in 2016 and Park, Forestry and Recreation increased spending from 50.5 percent in 2014 to projected 53.4 percent in 2016.

The Executive Committee recommends that:

1.  City Council authorize the reallocation of funds in Facilities, Real Estate, Environment and Energy's 2016 Council Approved Capital Budget in the amount of $2.888 million, as illustrated in Schedule A to the report (October 27, 2016) from the Chief Corporate Officer, with zero gross and debt impact.

This report requests authority to amend the Facilities, Real Estate, Environment and Energy (FREEE) 2016 Council Approved Capital Budget and 2017-2025 Capital Plan.  The amendments will have zero gross and net debt impact corporately and will better align 2016 and future cash flows with Facilities, Real Estate, Environment and Energy program requirements.

This report requests authority to amend the Facilities, Real Estate, Environment and Energy (FREEE) 2016 Council Approved Capital Budget and 2017-2025 Capital Plan. The amendments will have zero gross and net debt impact corporately and will better align 2016 and future cash flows with Facilities, Real Estate, Environment and Energy program requirements.

The City of Toronto has been allocated $154.3 million through the new Social Infrastructure Fund (SIF) program for 2016 and 2017.

The Social Infrastructure Fund includes two main program components:  The Social Housing Improvement Program (SHIP) to improve and preserve the quality of housing, and increased funding for the Investment in Affordable Housing program (SIF IAH).

The purpose of this report is to ensure capacity within Shelter, Support and Housing Administration (SSHA) and the Affordable Housing Office (AHO) to fully deliver the additional federal-provincial funding allocated to the City under the new Social Infrastructure Fund by adding 13 full-time temporary staff for a 2-year period ending in 2018, fully funded by the SIF administrative allocation, and by making other adjustments to facilitate Shelter, Support and Housing Administration's program delivery. Staffing requirements for any residual work in 2019 and beyond will be revisited through the City's annual budget process.

This report seeks City Council authority to adjust the 2016 Approved Operating budgets of Shelter, Support and Housing Administration's (SSHA) and the Affordable Housing Office (AHO). The adjustments for Shelter, Support and Housing Administration will include funding for administration (i.e., salary and benefits) and grants, while those for  Social Infrastructure Fund will include administration only, as Affordable Housing Office grants funding will be adjusted through different processes. The adjustments will increase the Program's Operating Budgets by:

-  Shelter, Support and Housing Administration of $7,331,846 gross, $0 net for 2016, $66,177,301 gross, $0 net for 2017, and $1,151,559 gross, $0 net for 2018, with future year staffing requests subject to Council approval through the annual budget process; and

-  Affordable Housing Office of $42,000 gross, $0 net for 2016, $500,000 gross, $0 net for 2017 and $500,000 gross, $0 net for 2018, with future year staffing requests subject to Council approval through the annual budget process.

These budget adjustments will allow Shelter, Support and Housing Administration and the Affordable Housing Office to complete upfront work required to commit, spend, and report on the funds received by the deadlines set by the federal and provincial governments. Any future commitments beyond 2018 will be subject to Council approval through the annual budget process.

The City of Toronto has been allocated $154.3 million through the new Social Infrastructure Fund (SIF) program for 2016 and 2017.

The Social Infrastructure Fund includes two main program components: The Social Housing Improvement Program (SHIP) to improve and preserve the quality of housing, and increased funding for the Investment in Affordable Housing program (SIF IAH).

The purpose of this report is to ensure capacity within Shelter, Support and Housing Administration (SSHA) and the Affordable Housing Office (AHO) to fully deliver the additional federal-provincial funding allocated to the City under the new Social Infrastructure Fund by adding 13 full-time temporary staff for a 2-year period ending in 2018, fully funded by the SIF administrative allocation, and by making other adjustments to facilitate Shelter, Support and Housing Administration's program delivery. Staffing requirements for any residual work in 2019 and beyond will be revisited through the City's annual budget process.

This report seeks City Council authority to adjust the 2016 Approved Operating budgets of Shelter, Support and Housing Administration's (SSHA) and the Affordable Housing Office (AHO). The adjustments for Shelter, Support and Housing Administration will include funding for administration (i.e., salary and benefits) and grants, while those for Social Infrastructure Fund will include administration only, as Affordable Housing Office grants funding will be adjusted through different processes. The adjustments will increase the Program's Operating Budgets by:

- Shelter, Support and Housing Administration of $7,331,846 gross, $0 net for 2016, $66,177,301 gross, $0 net for 2017, and $1,151,559 gross, $0 net for 2018, with future year staffing requests subject to Council approval through the annual budget process; and

- Affordable Housing Office of $42,000 gross, $0 net for 2016, $500,000 gross, $0 net for 2017 and $500,000 gross, $0 net for 2018, with future year staffing requests subject to Council approval through the annual budget process.

These budget adjustments will allow Shelter, Support and Housing Administration and the Affordable Housing Office to complete upfront work required to commit, spend, and report on the funds received by the deadlines set by the federal and provincial governments. Any future commitments beyond 2018 will be subject to Council approval through the annual budget process.

The purpose of this report is to increase the 2017 Interim Operating Budget Estimates for Parks, Forestry and Recreation to accommodate the cost of adding an additional six temporary positions for six months to address a recent surge of complaints regarding bylaw infractions under the Street Tree and Private Tree By-laws (City of Toronto Municipal Code, Chapter 813, Articles II and III) and Ravine and Natural Feature Protection By-law (City of Toronto Municipal Code, Chapter 658) as well as an increase in permit applications.

The cost of this response will be recovered by the permit and contravention fees generated under the bylaws during this period.

The purpose of this report is to increase the 2017 Interim Operating Budget Estimates for Parks, Forestry and Recreation to accommodate the cost of adding an additional six temporary positions for six months to address a recent surge of complaints regarding bylaw infractions under the Street Tree and Private Tree By-laws (City of Toronto Municipal Code, Chapter 813, Articles II and III) and Ravine and Natural Feature Protection By-law (City of Toronto Municipal Code, Chapter 658) as well as an increase in permit applications.

The cost of this response will be recovered by the permit and contravention fees generated under the bylaws during this period.

The Executive Committee recommends that:

1.  City Council direct that the City increase the accessibility of public processes, consultations and committee meetings by including communities, using accessible, alternative and visual languages, including audio description, as a way to communicate and that such meetings progress to universal design for all people in the City of Toronto.

2.  City Council direct the Chief Corporate Officer to report to the Disability, Access and Inclusion Advisory Committee every six months on the progress the City has made with respect to the universal design for all meetings and the establishment of accessibility minimum standards for participation in meetings.

After attending a meeting at the Toronto and East York Community Council in September, I wanted to find a way to implement more accessibility in the political process for people with disAbilities, specifically people living with speech/language difficulties and who use Augmentative communication and Deaf/Hard of Hearing.

All public consultations and meetings open to the public should include sufficient time (often extra time) for people using alternative communication/visual language in their deputation process.  So far, what I have seen is that people that need extra time to communicate are given that extra time – which is awesome – but I would like to make that more transparent and in written form when it comes to public processes and consultations.  It should be well known that for all public processes and consultations, the participation of people using alternative communication is encouraged and will be accommodated.

The Executive Committee:

1.  Requested the Acting General Manager, Transportation Services, to review City by-laws and policies relating to authorized encroachments onto the right-of-way and report back to the Disability, Access and Inclusion Advisory Committee on options to address situations where a requested encroachment is made for the purpose of accessibility into businesses and adjoining properties, taking into consideration the diverse needs and uses of City sidewalks and the right-of-way.

Compliance with the Accessibility for Ontarians with Disabilities Act is required by all businesses by 2025.  In efforts to make their businesses more accessible, some businesses have added ramps to their establishments to improve accessibility.  In some cases these ramps, or other changes to their buildings, require access to the right-of-way and conflict with current Transportation by-laws.  These by-laws need to be reviewed in consideration of accessibility concerns.

The Executive Committee recommends that:

1.  City Council request the Toronto Transit Commission to review the process for classification of accessible and inaccessible bus stops/routes to determine how it is impacting Toronto Transit Commission policies and whether any improvements can be made so that accessibility options are improved on bus stops/routes.

2.  City Council request the Toronto Transit Commission to ensure the policy that allows customers be dropped off between bus stops at locations that are deemed to be accessible and safe by the customer, is being applied consistently.

Currently, not all bus stops are up to code to be optimally accessible yet there are many TTC customers that require accessible bus stops in order to use the service and arrive at their desired destinations.  The TTC has indicated that there is a policy that allows customers to be dropped off at locations near or between bus stops that are deemed to be both accessible and safe by the customer. However, the policy is not always applied when a bus stop has been classified as inaccessible by the City of Toronto, Transportation Services.  There should be a consistent practice in place that prioritizes access to transit (i.e. pulling up to a curb, and moving away from street furniture) to enhance TTC services for all riders.  The classification of accessible/ inaccessible bus routes should be reviewed and revised or eliminated so that it does not conflict with TTC policies.

The Executive Committee:

1.  Approved the establishment of the following Working Groups of the Disability, Access and Inclusion Advisory Committee:

-  Communications Working Group;

-  Employment Working Group;

-  Housing Working Group; and

-  Transportation Working Group.

2.   Approved the following membership:

-  Communications Working Group: Darren Cooper, Yin Brown, Stephanie Ozorio and Rahima Mulla;

-  Employment Working Group: Wendy Porch, Victoria Warner, and Tom Proszowski;

-  Housing Working Group: Joe Knapper and Terri-Lynn Langdon; and

-  Transportation Working Group: Tracy Odell and Tom Proszowski.

The Disability, Access and Inclusion Advisory Committee, at its meeting on September 1, 2016, considered Item DI11.4 and established Working Groups on the Built Environment and Education and Communications.  We would like the Committee to have a further discussion about the working groups.

We would like to propose the Committee consider renaming the two Working Groups that were established and to create two additional Working Groups as we think these four working groups would reflect the interests and priorities of the Committee:

-   The Working Group on the Built Environment should be renamed as "Housing and Built Environment"

-  The Working Group on Education and Communications should be renamed as "Communications"

-  Two new working groups be added on "Transportation" and "Employment".

The Executive Committee:

1.  Requested the Budget Committee during the 2017 budget process to consider the impact of all service improvements and changes to individuals and families living with disabilities.

On July 12, 2016, City Council passed EX16.37 requesting an across the board budget cut of 2.6 percent net below the 2016 Approved Net Operating Budgets for all City Programs, Agencies, Toronto Community Housing Corporation, and Accountability Offices.

Since then I have heard from some of the agencies that help our most vulnerable citizens that an across-the-board budget cut would impact services and agencies that are vital to their wellbeing. This includes the Toronto Public Library Board, has said that a 2.6 percent cut would mean service reductions, the Toronto Public Health Board, who said that a 2.6 percent cut would stop low-income students from getting healthy snacks in our schools, and from Toronto Community Housing Corporation who said that a 2.6 percent cut would force the closure of some units.

What ties these cuts together is their impact on our most vulnerable residents, residents that include those with disabilities. It's not just our libraries, and schools and housing. It will include our parks, our recreational programing, our transit system and our shelter system. A 2.6 percent budget cut will create new challenges and burden residents who are already marginalized including our seniors, our newcomers and those struggling with poverty.

The Accessibility for Ontarians with Disabilities Act, 2005 requires us to remove barriers for individuals with physical or mental disabilities, be the barrier physical, architectural, informational, attitudinal, technological or through a policy or a practice. A 2.6 percent budget cut will only serve to create new barriers by denying our most vulnerable residents the critical city services they need.

The Executive Committee recommends that:

1.  City Council authorize the Board to enter a Memorandum of Understand and a long-form Naming Agreement with Beanfield generally on the terms and conditions set out in Appendix "A" and the Confidential Attachment 1 to the report (October 24, 2016) from the Chief Executive Officer, Exhibition Place, and such other terms and conditions as may be satisfactory to the Chief Executive Officer, and in a form satisfactory to the City Solicitor.

2.   City Council direct that the confidential information contained in Confidential Attachment 1 to the report (October 24, 2016) from the Chief Executive Officer, Exhibition Place not be released publicly in order to protection the competitive position and future economic interests of Exhibition Place and the City of Toronto.

This report recommends that the Board enter into a Memorandum of Understanding (MOU) and a long-form naming agreement with Beanfield Technologies Inc. (Beanfield) for the name-in-title sponsorship of Allstream Centre commencing at the expiry of the existing agreement between MTS Allstream Inc. (Allstream) and the Board.  The Naming Agreement with Beanfield will commence March 1, 2017 and continue for 10 years. The proposed terms and conditions are as set out in Appendix “A” and the confidential terms related to the financial return paid for the specific rights received are set out in the Confidential Attachment.

The Executive Committee:

1.  Received the report (November 2, 2016) from the Chair, Toronto Police Services Board for information. 

The purpose of this report is to provide the Executive Committee with the Toronto Police Services Board’s (Board) response to City Council’s decision from its meeting held on July 12, 2016, regarding the City-Wide Real Estate Review.

The Executive Committee recommends that:

1.  City Council receive the report (November 2, 2016) from the Chair, Toronto Police Services Board for information.

The purpose of this report is to provide City Council, via the Executive Committee, with the Toronto Police Services Board's (Board) response to City Council's Member Motion from its meeting held on July 12, 2016, regarding 911 Texting.

The Executive Committee:

1.  Directed the City Manager to report to the Executive Committee in the third quarter of 2017 on the status of the implementation of mobility policies and flexible work arrangements through a pilot project within an appropriate City division to be determined by the City Manager.

City Council on October 5, 6 and 7, 2016, referred Motion MM21.16 to the Executive Committee.

In July 2015, the issue of flexible work hours/alternative work arrangements was referred by City Council to the Executive Director of Human Resources for consideration in future collective bargaining.  In view of the fact that congestion within the City of Toronto is only increasing with every passing year and that this reality is presenting unprecedented challenges for residents and businesses across the City of Toronto, this matter needs to be reconsidered and acted upon decisively and without delay.  The City has made efforts to improve traffic flows to reduce impacts for commuters and commercial transportation but even with these initiatives congestion continues to be a major challenge in all parts of the City and will only increase in the future.  Flexible Hours/Alternative Work Arrangements for City employees must become a priority for its implementation will assist directly in reducing congestion.  Technological advances are among the ways in which City employees can avoid high commute travel periods.  This matter has been debated without significant action on the part of the City between 2002 and 2015.  It requires meaningful and tangible action that will produce results in the short and long term.

The Executive Committee deferred consideration of the item indefinitely.

City Council on November 8 and 9, 2016, referred Motion MM22.1 to the Executive Committee.

Many residents in Toronto utilize classified ads to purchase and sell products. Although many deals can be found through these ads, there is always a risk when meeting a stranger in person. To mitigate this risk, designated areas in police stations, such as a couple of parking spots, will help residents safely conduct these transactions.

The Executive Committee deferred consideration of the item indefinitely.

City Council on November 8 and 9, 2016, referred Motion MM22.6 to the Executive Committee.

As a multicultural City, the City of Toronto has been voted as one of the ten best cities to live in the world. To be truly considered multicultural, our ethics and practices have to reflect these norms. This Motion is asking for a report on the feasibility of changing the City's policies on religious practices so that the City of Toronto's business and cultural practices reflect our Canadian values in the 21st Century.

The Executive Committee recommends that:

1.  City Council indicate its support for replacing the lost railway stations of West Toronto by requesting Metrolinx to work with the residents of these communities, in order to reach a design for these new stations which includes the architectural template of former railway depots in this area.

2.  City Council request Metrolinx to involve individuals from the local community who have interest and experience related to railway history and heritage preservation in the community consultations and advisory panels during the Environmental Assessment process for these new stations.

City Council on November 8 and 9, 2016, referred Motion MM22.7 to the Executive Committee.

In earlier times, Toronto’s West Toronto - Davenport - Parkdale area held at least nine railway stations. Suburban depots located in what were originally standalone communities, including Parkdale, West Toronto, and York, were a core part of the economic and transportation infrastructure. These communities began, and developed, due to the arrival of railways and the construction of major railway facilities in these areas.

None of these stations have survived as working or heritage structures. By 1980, the heritage value of these structures was recognized; however, owing to weaker laws and lack of funding, attempts to preserve these buildings were unsuccessful. Two stations - Canadian National St. Clair Avenue Depot, and Canadian National Parkdale Depot - were lost to fire shortly after having been set aside for restoration. The third station, the former Canadian Pacific West Toronto depot, was demolished by its owner just as the City was taking steps to relocate and preserve it. The loss of the West Toronto Depot was a particularly bitter blow to the community and spurred interest in more concentrated heritage efforts.

Metrolinx is currently planning new rail stations in some of these same locations - St. Clair/Keele, Bloor/Lansdowne, and Liberty Village/Parkdale - to support the planned new GO Regional Express Rail and SmartTrack services.

There is an opportunity to design and construct these new stations using the architectural template of former railway depots in this area.  This will restore this lost element of past history into the community.

Use of traditional architecture will complement the prevailing flavour of dwellings and businesses in these areas, and prevent the mismatching of 2016 architecture into public space at these locations.

Since the new buildings will be working transit facilities, no new funding is required to achieve this. Once constructed, these heritage relevant structures will have longevity in these communities. Their future role is aligned to their original purpose. Proper security and ongoing maintenance is assured.

The Executive Committee deferred consideration of the item indefinitely.

City Council on November 8 and 9, 2016, referred Motion MM22.13 to the Executive Committee.

Toronto Community Housing Corporation has entered into contracts with communication companies to allow them to install rooftop telecommunications towers on Toronto Community Housing Corporation buildings.  Many taller Toronto Community Housing Corporation buildings now have roofs that are jammed with telecommunications towers.

Many residents have concerns regarding the effects of living in close proximity to so many telecommunications towers. There is also confusion among residents regarding the approval process for them, the City of Toronto's role and the federal health and safety requirements.

Given these concerns, it is timely for Toronto Community Housing Corporation to review the procedures they are required to follow when approving rooftop telecommunications towers, notably their obligations for public consultation.  An analysis of the impact of the recent Supreme Court decision that only the federal government may approve or reject the location of a cell phone antenna should also be part of this request.

The Executive Committee 

1.  Referred the item to the Director, Affordable Housing Office for his consideration and with the request that he report back to the Executive Committee if he finds the program feasible for the City of Toronto.

City Council on November 8 and 9, 2016, referred Motion MM22.14 to the Executive Committee.

The residential housing market in the City of Toronto has become unaffordable for most middle-income earners.  The fact that home ownership is beyond the reach of so many middle-income residents of the City of Toronto is unacceptable and requires swift and meaningful action.  Professor Thomas Davidoff of the Sauder School of Business at the University of British Columbia, along with many academic colleagues in that Province, has put forward a proposal to establish a British Columbia Housing Affordability Fund that would make the local housing market “a less attractive target for investors who wish to avoid taxation or park cash in residential real estate.”  The plan would ultimately serve to adjust the residential housing market so that it would become more accessible for middle-income families who are seeking a place to live rather than simply an investment. The proposal would establish a system to deliver funding to middle-income residents funded by property owners who have little or no residential or commercial links to the City or the Province.  The British Columbia Housing Affordability Fund proposed by Professor Davidoff and his colleagues would require cooperation from other levels of government but would ultimately be of significant benefit to middle-income families seeking to access the residential housing market.

The Executive Committee deferred consideration of the item indefinitely.

City Council on November 8 and 9, 2016, referred Motion MM22.16 to the Executive Committee.

As property values are continuing to increase in the City of Toronto, a recent poll conducted by Mainstreet Research found 71 percent of decided respondents favoured a tax on non-Canadian residents. More specifically, the poll found 52 percent of respondents favoured a tax on non-Canadian residents.  Another 27 percent were unsure about such a levy and 21 percent of those surveyed opposed a special tax.

Mainstreet surveyed 1,045 Toronto residents last month and the poll has a margin of error of three percent, 19 times out of 20.

This Motion is asking for a report to calculate the number of properties in the City of Toronto that have been purchased or sold by non-Canadian residents.

The Executive Committee recommends that:

1.  City Council approve the 2017 Interim Operating Estimates totalling $2.506 billion as detailed by City Program and Agency in Appendix 1 to the report (November 23, 2016) from the Deputy City Manager and Chief Financial Officer.

2.  City Council approve the 2017 Interim Capital Estimates totalled $929.952 million in gross expenditures and financing of $349.399 million in debt funding; $188.283 million in Provincial and Federal funding; $225.633 million in Reserve/Reserve Funds funding; $66.406 million in Development Charges and $100.231 million in Third Party and Other funding as detailed by City Program and Agency in Appendix 2 to the report (November 23, 2016) from the Deputy City Manager and Chief Financial Officer.

In accordance with the City of Toronto Act (CoTA) and Financial Control By-Law, Interim Budget Estimates must be approved prior to January 1, 2017 to ensure that appropriate Council approval is granted to fund the continuance of the City's business until 2017 Operating and Capital Budgets are approved by City Council.

The 2017 Tax supported Operating and Capital Budgets are scheduled to be approved by City Council on February 15 and 16, 2017. The purpose of this report is to establish the 2017 Interim Operating and Capital Estimates in order to enable City Programs and Agencies to have necessary spending authority to carry out their ongoing base operations and to continue work on previously approved urgent capital projects until the 2017 Operating and Capital Budgets are approved by City Council and uploaded in the City financial system.

The 2017 Tax Supported Interim Operating Estimates are $2.506 billion gross and requires cash outflow funding of $2.139 billion. The 2017 Tax Supported Interim Capital Estimates total $929.952 million gross expenditures that require debenture financing of $349.399 million.