Item - 2011.EX12.3

Tracking Status

  • City Council adopted this item on November 29, 2011 without amendments.
  • This item was considered by Executive Committee on November 1, 2011 and was adopted with amendments. It will be considered by City Council on November 29, 2011.

EX12.3 - Monetization Potential of City Assets

Decision Type:
ACTION
Status:
Adopted
Wards:
All

City Council Decision

City Council on November 29, 30 and December 1, 2011, adopted the following:

 

1.         The City, as shareholder, jointly with BPC Penco, direct the Board of Enwave Energy Corporation ("Enwave") to undertake all necessary actions to solicit proposals for a joint sale of 100% of the shareholders' interest in Enwave on behalf of both shareholders through a competitive auction, in such a way as to obtain the maximum proceeds for the shareholders.

 

2.         City Council direct the Deputy City Manager and Chief Financial Officer (the DCM/CFO) to execute amendments to the Enwave Shareholder's Agreement, as described in the Confidential Attachment of the report (October 18, 2011) from the Deputy City Manager and Chief Financial Officer, on terms and conditions satisfactory to the  DCM/CFO and in a form satisfactory to the City Solicitor, to facilitate the sale of the shareholders' interest in Enwave free from the restrictions on sale contained therein.

 

3.         City Council direct the Deputy City Manager and Chief Financial Officer to report back directly to Council on the sale process in regard to Enwave and the recommendations from the Enwave Board in that regard, and make recommendations in regard to execution of a sale.

 

4.         City Council direct that the net proceeds of disposition of Enwave shares be allocated to the Capital Financing Reserve Fund (XR 1011) and used to offset future debt issuance.

 

5.         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.

 

Confidential Attachment 1 to the report (October 18, 2011) from the Deputy City Manager and Chief Financial Officer, remains confidential in its entirety, in accordance with the provision of the City of Toronto Act, 2006 as it contains information about the security of the property of the municipality.

City Council Decision Advice and Other Information

City Council recessed its public session and met as Committee of the Whole in closed session on November 30, 2011, and considered confidential information on this Item as it relates to the security of the property of the municipality or local board.

Confidential Attachment - The security of the property of the municipality or local board

Background Information (Committee)

(October 18, 2011) Report from the Deputy City Manager and Chief Financial Officer on Monetization Potential of City Assets
https://www.toronto.ca/legdocs/mmis/2011/ex/bgrd/backgroundfile-41900.pdf
(October 18, 2011) Confidential Appendix to the staff report - Monetization Potential of City Assets

Communications (Committee)

(October 25, 2011) E-mail from Raymond Begin (EX.New.EX12.3.1)
(November 1, 2011) Fax from Ann Dembinski, President, CUPE Local 79 (EX.New.EX12.3.2)
https://www.toronto.ca/legdocs/mmis/2011/ex/comm/communicationfile-26174.pdf
(November 1, 2011) Letter from Dave Hewitt, Vice President, Local 416 (EX.New.EX12.3.3)
https://www.toronto.ca/legdocs/mmis/2011/ex/comm/communicationfile-26217.pdf
(November 1, 2011) Letter from Dave Philpott, Vice-President CUPE Local One (EX.New.EX12.3.4)
https://www.toronto.ca/legdocs/mmis/2011/ex/comm/communicationfile-26388.pdf

Motions (City Council)

Report of Committee of the Whole

November 30, 2011 - 8:02 p.m. - Speaker Nunziata advised that City Council had completed its closed session consideration of Item EX12.3 on the monetization potential of City assets.  No motions were moved in the closed session.  Council would now have the public debate on this item.


Motion to Adopt Item (Carried)

Vote (Adopt Item) Nov-30-2011 8:29 PM

Result: Carried Majority Required - EX12.3 - Adopt the item
Total members that voted Yes: 30 Members that voted Yes are Paul Ainslie, Ana Bail„o, Michelle Berardinetti, Shelley Carroll, Josh Colle, Gary Crawford, Vincent Crisanti, Mike Del Grande, Frank Di Giorgio, John Filion, Doug Ford, Rob Ford, Mark Grimes, Doug Holyday, Norman Kelly, Chin Lee, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Jaye Robinson, David Shiner
Total members that voted No: 9 Members that voted No are Janet Davis, Sarah Doucette, Paula Fletcher, Mary Fragedakis, Mike Layton, Gord Perks, Anthony Perruzza, Adam Vaughan, Kristyn Wong-Tam
Total members that were Absent: 6 Members that were absent are Maria Augimeri, Raymond Cho, Glenn De Baeremaeker, Pam McConnell, Karen Stintz, Michael Thompson

Motion to End Debate moved by Councillor Cesar Palacio (Lost)

That in accordance with the provisions of Chapter 27, Council Procedures, Council end the debate on Item EX12.3 and take the vote immediately.

Vote (End Debate) Nov-30-2011 8:04 PM

Result: Lost Two-Thirds Required - EX12.3 - End debate
Total members that voted Yes: 24 Members that voted Yes are Paul Ainslie, Ana Bail„o, Michelle Berardinetti, Josh Colle, Gary Crawford, Vincent Crisanti, Mike Del Grande, Frank Di Giorgio, Doug Ford, Rob Ford, Mark Grimes, Chin Lee, Giorgio Mammoliti, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Jaye Robinson, David Shiner
Total members that voted No: 14 Members that voted No are Shelley Carroll, Janet Davis, Sarah Doucette, Paula Fletcher, Mary Fragedakis, Doug Holyday, Norman Kelly, Mike Layton, Gloria Lindsay Luby, Josh Matlow, Gord Perks, Anthony Perruzza, Adam Vaughan, Kristyn Wong-Tam
Total members that were Absent: 7 Members that were absent are Maria Augimeri, Raymond Cho, Glenn De Baeremaeker, John Filion, Pam McConnell, Karen Stintz, Michael Thompson

EX12.3 - Monetization Potential of City Assets

Decision Type:
ACTION
Status:
Amended
Wards:
All

Confidential Attachment - The security of the property of the municipality or local board

Committee Recommendations

The Executive Committee recommends that:

 

1.         The City, as shareholder, jointly with BPC Penco, direct the Board of Enwave Energy Corporation ("Enwave") to undertake all necessary actions to solicit proposals for a joint sale of 100% of the shareholders' interest in Enwave on behalf of both shareholders through a competitive auction, in such a way as to obtain the maximum proceeds for the shareholders.

 

2.                  City Council direct the Deputy City Manager and Chief Financial Officer (the DCM/CFO) to execute amendments to the Enwave Shareholder's Agreement, as described in the Confidential Attachment of the report (October 18, 2011) from the Deputy City Manager and Chief Financial Officer, on terms and conditions satisfactory to the  DCM/CFO and in a form satisfactory to the City Solicitor, to facilitate the sale of the shareholders' interest in Enwave free from the restrictions on sale contained therein.

 

3.         City Council direct the Deputy City Manager and Chief Financial Officer to report back directly to Council on the sale process in regard to Enwave and the recommendations from the Enwave Board in that regard, and make recommendations in regard to execution of a sale.

 

4.         City Council direct that the net proceeds of disposition of Enwave shares be allocated to the Capital Financing Reserve Fund (XR 1011) and used to offset future debt issuance.

 

5.         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 thereto.

 

Decision Advice and Other Information

The Executive Committee deferred the following Recommendations 4 and 5 of the report (October 18, 2011) from the Deputy City Manager and Chief Financial Officer until its first regular meeting in 2012:

 

"4.        The City, as sole Shareholder, direct the Board of Toronto Hydro Corporation to prepare for an initial public offering of shares to effect a reduction of the City's ownership stake in the corporation up to a maximum of 10%, for the purposes of issuing a one-time disbursement to the City of the entire net proceeds of the issuance, and seek approval from the shareholder before execution. 

 

5.         The City further direct the Board of Toronto Hydro Corporation to design the public share offering so as to allocate the maximum portion of shares to Toronto residents that would not adversely affect the proceeds of sale."

 

The Deputy City Manager and Chief Financial Officer made a presentation on this item.

Origin

(October 18, 2011) Report from the Deputy City Manager and Chief Financial Officer

Summary

 

The City owns interests in a considerable number of marketable assets, including real estate and government business enterprises.  Monetization of these assets has the potential to offset some of the spending and debt pressures in the City's capital budget.

 

This report provides:

  1. an overview of the City's fiscal challenge
  2. an overview of the City's major assets and their potential for monetization
  3. specific recommendations regarding proposals to monetize identified assets
  4. proposed use of the resulting proceeds.

Background Information

(October 18, 2011) Report from the Deputy City Manager and Chief Financial Officer on Monetization Potential of City Assets
https://www.toronto.ca/legdocs/mmis/2011/ex/bgrd/backgroundfile-41900.pdf
(October 18, 2011) Confidential Appendix to the staff report - Monetization Potential of City Assets

Communications

(October 25, 2011) E-mail from Raymond Begin (EX.New.EX12.3.1)
(November 1, 2011) Fax from Ann Dembinski, President, CUPE Local 79 (EX.New.EX12.3.2)
https://www.toronto.ca/legdocs/mmis/2011/ex/comm/communicationfile-26174.pdf
(November 1, 2011) Letter from Dave Hewitt, Vice President, Local 416 (EX.New.EX12.3.3)
https://www.toronto.ca/legdocs/mmis/2011/ex/comm/communicationfile-26217.pdf
(November 1, 2011) Letter from Dave Philpott, Vice-President CUPE Local One (EX.New.EX12.3.4)
https://www.toronto.ca/legdocs/mmis/2011/ex/comm/communicationfile-26388.pdf

Speakers

John Cartwright, President, Toronto & York Region Labour Council
Dave Philpott, Vice-President, CUPE Local One
Franz Hartmann, Toronto Environmental Alliance, Toronto Environmental Alliance
Paul Kahnert, CUPE Local One
Councillor Gord Perks
Councillor Shelley Carroll
Councillor Adam Vaughan
Councillor Mary Fragedakis
Councillor Janet Davis
Councillor Joe Mihevc

Motions

1 - Motion to Amend Item moved by Councillor Jaye Robinson (Carried)

That the Executive Committee defer consideration of Recommendations 4 and 5 of the report (October 18, 2011) from the Deputy City Manager and Chief Financial Officer until its first regular meeting in 2012.


2 - Motion to Adopt Item as Amended moved by Councillor Jaye Robinson (Carried)
Source: Toronto City Clerk at www.toronto.ca/council