Item - 2011.EX4.6

Tracking Status

EX4.6 - Managing Through Agencies and Corporations

Decision Type:
ACTION
Status:
Amended
Wards:
All

City Council Decision

City Council on April 12 and 13, 2011, adopted the following:

 

1.          City Council request the City Manager to continue to review agency governance structures focussing on key opportunities for improvement with the following goals:

 

a.         ensure that the services provided by agencies are appropriate municipal services;

 

b.          ensure that the number of agencies and related governance costs add value to their purpose, capitalize on opportunities to combine similar businesses, eliminate overlaps with City programs and services, or, for revenue-generating boards, achieve the critical mass to be self-sustainable;

 

c.          clarify City objectives for agencies, ensuring that the policy framework is appropriate to the business sector in which they operate; and that staff propose a process for review of these relationship frameworks including a schedule for reviews that includes appropriate opportunity for input from the Board, stakeholder communities and Council; and that further, City Council request the City Manager to report to the Executive Committee by mid-term on the progress of developing relationship frameworks for all agencies without Shareholder agreements;

 

d.          put mechanisms in place to ensure alignment and commitment to City objectives;

 

e.         ensure that services provided by agencies respond to the needs of residents and communities;

 

f.          engage residents and communities in decision-making, governance, and determining service priorities;

 

g.         ensure that the City's decision-making bodies represent the diversity of the City's residents and communities; and

 

h.         achieve the highest ethical standards, including accountability, transparency and openness in governance.

 

2.          a.        City Council endorse the following accountability mechanisms for managing through City agencies:

 

i.            City Council appoint the Chair of each board except where legislation restricts this power, such as for the Police Services Board, the Board of Health, the Toronto Public Library Board and Committee of Adjustment and, for greater clarity, does not apply to community-based boards such as AOCCs, BIAs and arena boards;

 

ii.          City Council approve the board by-laws of all agencies that regulate the internal conduct of the business and affairs of the agency, as is currently required for all City corporations; and

 

iii.        City Council establish City by-laws codifying the governance structures of City agencies and their Council-approved financial reporting obligations;

 

b.         City Council authorize the City Manager to establish the necessary protocols or take other actions to implement the accountability mechanisms set out in Part 2a above.

 

3.          a.        City Council request the City Manager to review board human resources policies and practices and recommend changes to ensure alignment with City objectives including: compensation, appointment and performance management of senior board staff and labour relations; and

 

b.         City Council direct every board to provide the City Manager with all information required to conduct the review.

 

4.                   City Council request the City Manager to bring forward a City policy framework that ensures that City principles, policies and accountabilities are applied appropriately to each agency and that the appropriate degree of independence is respected.

 

5.         City Council direct the City Manager to report at the beginning of each term of Council on the strategy for managing through agencies and corporations and make any recommendations to improve accountability and alignment with City priorities.

 

6.         City Council request the Auditor General to specify in his reports whether his recommendations extend to City agencies.

 

7.                   City Council direct that the Sinking Fund Committee and the Investment Advisory Committee be dissolved and their investment decisions be delegated to the Deputy City Manager and Chief Financial Officer.

 

8.         City Council establish a new Independent Investment Advisory Committee in accordance with the City's Public Appointments Policy, consisting of three citizen members who are voluntary and not compensated for their membership, to advise the Deputy City Manager and Chief Financial Officer on portfolio strategies and governance issues for all of the City's investment portfolios.

 

9.                   City Council direct that Chapter 103 Article 1 Sections 103-1, 103-2, and 103-3 of the Municipal Code, regarding the Museum Boards, be deleted to reflect the status of Museum Boards as key advisory bodies since Council approval of the 2002 Memorandum of Understanding between the City and the Museum Boards, and to enable a transition to an alternate engagement process as endorsed by the Museum Boards.

 

10.               City Council authorize the City Manager, where necessary, to set the effective date of the changes resulting from approval of the recommendations in this report and amend any and all relationship frameworks, shareholder directions, policies, websites, or other documents to implement the changes as approved by Council and further, that the City Manager submit to Council for final approval any amendments to Relationship Frameworks and Shareholder directions.

 

11.               City Council authorize the City Solicitor to bring forward any necessary amendments to City by-laws or the Municipal Code including bills giving effect to decisions to dissolve and change local boards under s. 145 of the City of Toronto Act, 2006 to implement Recommendations 2(a)(i), 7 and 9 above, or to take any other action she deems necessary to implement those recommendations

 

12.       City Council refer the following Executive Committee Recommendation 2a (iv) to the City Manager and request the City Manager to report to a future meeting of the Executive Committee with further information on the type, frequency, and purpose of such reporting, and a list of the agencies and Standing Committees they report through:

 

2.iv.      agency reports be submitted to the City through the City Manager for transmittal to the appropriate standing committee in order to provide information on the impact on the City, similar to the process established for City corporations.

City Council Decision Advice and Other Information

City Council considered Executive Committee Items EX4.6 and EX4.7 together.

Background Information (Committee)

(March 9, 2011) Staff Report - Managing Through Agencies and Corporations
https://www.toronto.ca/legdocs/mmis/2011/ex/bgrd/backgroundfile-36606.pdf
(March 21, 2011) Presentation - Managing Through Agencies and Corporations & Public Appointments Policy
https://www.toronto.ca/legdocs/mmis/2011/ex/bgrd/backgroundfile-36738.pdf

Background Information (City Council)

(April 11, 2011) supplementary report from the City Manager (EX4.6a and EX4.7a)
https://www.toronto.ca/legdocs/mmis/2011/cc/bgrd/backgroundfile-37414.pdf

Communications (Committee)

(March 12, 2011) E-mail from Peter Clarke (EX.Supp.EX4.6.1)
(March 18, 2011) E-mail from James L. Robinson, Executive Director, Downtown Yonge Business Improvement Area (EX.Main.EX4.6.2)
(March 19, 2011) E-mail from Sharon Yetman, Inventor/Innovator, Platform Technology (EX.Main.EX4.6.3)
(March 21, 2011) Letter from Maureen O'Reilly, President, TPLWU Local 4948 (EX.Main.EX4.6.4)

Communications (City Council)

(April 8, 2011) Letter from Alex E. Graham submitted by Councillor Adam Vaughan, Ward 20, Trinity-Spadina (CC.New.EX4.6.5)

Motions (City Council)

1a - Motion to Amend Item moved by Councillor Janet Davis (Carried)

That City Council amend Executive Committee Recommendation 1 by adding the following goals:

 

e.         ensure that services provided by agencies respond to the needs of residents and communities;

f.          engage residents and communities in decision-making, governance, and determining service priorities;

g.         ensure that the city's decision-making bodies represent the diversity of the City's residents and communities;

h.         achieve the highest ethical standards, including accountability, transparency, and openness in governance.

Vote (Amend Item) Apr-12-2011 5:46 PM

Result: Carried Majority Required - EX4.6 - Davis - motion 1a
Total members that voted Yes: 27 Members that voted Yes are Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Janet Davis, Glenn De Baeremaeker, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mike Layton, Chin Lee, Gloria Lindsay Luby, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 16 Members that voted No are Paul Ainslie, Gary Crawford, Vincent Crisanti, Mike Del Grande, Frank Di Giorgio, Doug Ford, Rob Ford, Doug Holyday, Norman Kelly, Giorgio Mammoliti, Peter Milczyn, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, David Shiner
Total members that were Absent: 2 Members that were absent are Mark Grimes, Karen Stintz

1b - Motion to Amend Item moved by Councillor Janet Davis (Carried)

That City Council refer Executive Committee Recommendation 2a (iv) to the City Manager and request that he report to a future meeting of the Executive Committee with further information on the type, frequency, and purpose of such reporting, and a list of the agencies and Standing Committees they report through.

Vote (Amend Item) Apr-12-2011 5:48 PM

Result: Carried Majority Required - EX4.6 - Davis - motion 1b
Total members that voted Yes: 24 Members that voted Yes are Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Janet Davis, Glenn De Baeremaeker, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mike Layton, Chin Lee, Gloria Lindsay Luby, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, James Pasternak, Gord Perks, Anthony Perruzza, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 19 Members that voted No are Paul Ainslie, Gary Crawford, Vincent Crisanti, Mike Del Grande, Frank Di Giorgio, Doug Ford, Rob Ford, Doug Holyday, Norman Kelly, Giorgio Mammoliti, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, Jaye Robinson, David Shiner, Michael Thompson
Total members that were Absent: 2 Members that were absent are Mark Grimes, Karen Stintz

1c - Motion to Amend Item moved by Councillor Janet Davis (Carried)

That City Council amend Executive Committee Recommendation 7 by adding the words "and further, that the City Manager submit to Council for final approval any amendments to Relationship Frameworks and Shareholder directions" so that the recommendation now reads as follows:

 

7.          City Council authorize the City Manager, where necessary, to set the effective date of the changes resulting from approval of the recommendations in this report and amend any and all relationship frameworks, shareholder directions, policies, websites, or other documents to implement the changes as approved by Council; and further, that the City Manager submit to Council for final approval any amendments to Relationship Frameworks and Shareholder directions.

Vote (Amend Item) Apr-12-2011 5:49 PM

Result: Carried Majority Required - EX4.6 - Davis - motion 1c
Total members that voted Yes: 24 Members that voted Yes are Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Janet Davis, Glenn De Baeremaeker, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mike Layton, Chin Lee, Gloria Lindsay Luby, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Gord Perks, Anthony Perruzza, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 19 Members that voted No are Paul Ainslie, Gary Crawford, Vincent Crisanti, Mike Del Grande, Frank Di Giorgio, Doug Ford, Rob Ford, Doug Holyday, Norman Kelly, Giorgio Mammoliti, Peter Milczyn, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Jaye Robinson, David Shiner, Michael Thompson
Total members that were Absent: 2 Members that were absent are Mark Grimes, Karen Stintz

2 - Motion to Amend Item (Additional) moved by Councillor Doug Holyday (Carried)

That City Council adopt the following Recommendation 7 contained in the report (April 11, 2011) from the City Manager [EX4.6a/EX4.7a]:

 

7.         Council amend Executive Committee report EX4.6 to add the following new recommendations:

 

a.         Council direct the City Manager to report at the beginning of each term of Council on the strategy for managing through agencies and corporations and make any recommendations to improve accountability and alignment with City priorities; and

 

b.         Council request the Auditor General to specify in his reports whether his recommendations extend to City agencies.

Vote (Amend Item (Additional)) Apr-12-2011 5:50 PM

Result: Carried Majority Required - EX4.6 - Holyday - motion 2
Total members that voted Yes: 38 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Sarah Doucette, John Filion, Paula Fletcher, Doug Ford, Rob Ford, Mary Fragedakis, Doug Holyday, Norman Kelly, Mike Layton, Chin Lee, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 5 Members that voted No are Shelley Carroll, Frank Di Giorgio, Pam McConnell, Ron Moeser, Gord Perks
Total members that were Absent: 2 Members that were absent are Mark Grimes, Karen Stintz

3 - Motion to Amend Item moved by Councillor Raymond Cho (Lost)

That Recommendation 2(a)i of the Executive Committee be deleted.

 

Recommendation 2(a)i to be deleted

 

i.          City Council appoint the Chair of each board except where legislation restricts this power, such as for the Police Services Board, the Board of Health, the Toronto Public Library Board and Committee of Adjustment and, for greater clarity, does not apply to community-based boards such as AOCCs, BIAs and arena boards.

Vote (Amend Item) Apr-12-2011 5:51 PM

Result: Lost Majority Required - EX4.6 - Cho - motion 3
Total members that voted Yes: 20 Members that voted Yes are Maria Augimeri, Ana Bail„o, Shelley Carroll, Raymond Cho, Janet Davis, Glenn De Baeremaeker, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mike Layton, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, James Pasternak, Gord Perks, Anthony Perruzza, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 23 Members that voted No are Paul Ainslie, Michelle Berardinetti, Josh Colle, Gary Crawford, Vincent Crisanti, Mike Del Grande, Frank Di Giorgio, Doug Ford, Rob Ford, Doug Holyday, Norman Kelly, Chin Lee, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, Jaye Robinson, David Shiner, Michael Thompson
Total members that were Absent: 2 Members that were absent are Mark Grimes, Karen Stintz

4 - Motion to Amend Item (Additional) moved by Councillor Mary Fragedakis (Carried)

That City Council establish a new Independent Investment Advisory Committee in accordance with the City's Public Appointments Policy, consisting of three citizen members who are voluntary and not compensated for their membership, to advise the Deputy City Manager and Chief Financial Officer on portfolio strategies and governance issues for all of the City's investment portfolios.

Vote (Amend Item (Additional)) Apr-12-2011 5:52 PM

Result: Carried Majority Required - EX4.6 - Fragedakis - motion 4
Total members that voted Yes: 22 Members that voted Yes are Maria Augimeri, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Janet Davis, Glenn De Baeremaeker, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Gord Perks, Anthony Perruzza, Jaye Robinson, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 21 Members that voted No are Paul Ainslie, Ana Bail„o, Michelle Berardinetti, Vincent Crisanti, Mike Del Grande, Frank Di Giorgio, Doug Ford, Rob Ford, Doug Holyday, Norman Kelly, Gloria Lindsay Luby, Giorgio Mammoliti, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, David Shiner, Michael Thompson
Total members that were Absent: 2 Members that were absent are Mark Grimes, Karen Stintz

5 - Motion to Amend Item moved by Councillor Shelley Carroll (Carried)

That City Council amend Executive Committee Recommendation 1 c. to read as follows:

 

 c.        clarify City objectives for agencies, ensuring that the policy framework is appropriate to the business sector in which they operate; and that staff propose a process for review of these relationship frameworks including a schedule for reviews that includes appropriate opportunity for input from the Board, stakeholder communities and Council.; and that further,City Council  request that the City Manager report to the Executive Committee by mid-term on the progress of developing relationship frameworks for all agencies without Shareholder agreements.

Vote (Amend Item) Apr-12-2011 5:53 PM

Result: Carried Majority Required - EX4.6 - Caroll - motion 5
Total members that voted Yes: 35 Members that voted Yes are Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Sarah Doucette, John Filion, Paula Fletcher, Rob Ford, Mary Fragedakis, Mike Layton, Chin Lee, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Cesar Palacio, John Parker, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 8 Members that voted No are Paul Ainslie, Frank Di Giorgio, Doug Ford, Doug Holyday, Norman Kelly, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair)
Total members that were Absent: 2 Members that were absent are Mark Grimes, Karen Stintz

Motion to Adopt Item as Amended (Carried)

Vote (Adopt Item as Amended) Apr-12-2011 5:54 PM

Result: Carried Majority Required - EX4.6 - Adopt the item as amended
Total members that voted Yes: 37 Members that voted Yes are Paul Ainslie, Ana Bail„o, Michelle Berardinetti, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, Paula Fletcher, Doug Ford, Rob Ford, Mary Fragedakis, Doug Holyday, Norman Kelly, Mike Layton, Chin Lee, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson, Adam Vaughan
Total members that voted No: 6 Members that voted No are Maria Augimeri, Shelley Carroll, Sarah Doucette, John Filion, Gord Perks, Kristyn Wong-Tam
Total members that were Absent: 2 Members that were absent are Mark Grimes, Karen Stintz

EX4.6 - Managing Through Agencies and Corporations

Decision Type:
ACTION
Status:
Amended
Wards:
All

Committee Recommendations

The Executive Committee recommends that:

 

1.         City Council request the City Manager to continue to review agency governance structures focussing on key opportunities for improvement with the following goals:

 

a.         ensure that the services provided by agencies are appropriate municipal services;

 

b.         ensure that the number of agencies and related governance costs add value to their purpose, capitalize on opportunities to combine similar businesses, eliminate overlaps with City programs and services, or, for revenue-generating boards, achieve the critical mass to be self-sustainable;

 

c.         clarify City objectives for agencies, ensuring that the policy framework is appropriate to the business sector in which they operate; and

 

d.         put mechanisms in place to ensure alignment and commitment to City objectives.

 

2.         a.         City Council endorse the following accountability mechanisms for managing through City agencies:

 

i.          City Council appoint the Chair of each board except where legislation restricts this power, such as for the Police Services Board, the Board of Health, the Toronto Public Library Board and Committee of Adjustment and, for greater clarity, does not apply to community-based boards such as AOCCs, BIAs and arena boards;

 

ii.          City Council approve the board by-laws of all agencies that regulate the internal conduct of the business and affairs of the agency, as is currently required for all City corporations;

 

iii.         City Council establish City by-laws codifying the governance structures of City agencies and their Council-approved financial reporting obligations; and

 

iv.         agency reports be submitted to the City through the City Manager for transmittal to the appropriate standing committee in order to provide information on the impact on the City, similar to the process established for City corporations; and

 

b.         City Council authorize the City Manager to establish the necessary protocols or take other actions to implement the accountability mechanisms set out in Recommendation 2a above.

 

3.         a.         City Council request the City Manager to review board human resources policies and practices and recommend changes to ensure alignment with City objectives including: compensation, appointment and performance management of senior board staff and labour relations; and

 

b.         City Council direct every board to provide the City Manager with all information required to conduct the review.

 

4.                  City Council request the City Manager to bring forward a City policy framework that ensures that City principles, policies and accountabilities are applied appropriately to each agency and that the appropriate degree of independence is respected.

 

5.                  City Council direct that the Sinking Fund Committee and the Investment Advisory Committee be dissolved and their investment decisions be delegated to the Deputy City Manager and Chief Financial Officer.

 

6.                  City Council direct that Chapter 103 Article 1 Sections 103-1, 103-2, and 103-3 of the Municipal Code, regarding the Museum Boards, be deleted to reflect the status of Museum Boards as key advisory bodies since Council approval of the 2002 Memorandum of Understanding between the City and the Museum Boards, and to enable a transition to an alternate engagement process as endorsed by the Museum Boards.

 

7.                  City Council authorize the City Manager, where necessary, to set the effective date of the changes resulting from approval of the recommendations in this report and amend any and all relationship frameworks, shareholder directions, policies, websites, or other documents to implement the changes as approved by Council.

 

8.                  City Council authorize the City Solicitor to bring forward any necessary amendments to City by-laws or the Municipal Code including bills giving effect to decisions to dissolve and change local boards under s. 145 of the City of Toronto Act, 2006 to implement Recommendations 2(a)(i), 5 and 6 above, or to take any other action she deems necessary to implement those recommendations.

Decision Advice and Other Information

The Executive Committee requested the City Manager to report on the following motions directly to Council:

 

By Councillor Ainslie:

 

1.         That Recommendation 1 of the report (March 9, 2011) from the City Manager be deleted and replaced as follows:

 

"1a.       The City Manager at the beginning of each term is requested to report on the City's management of its ABCs, and make recommendations as necessary to:

 

i.           ensure that the services provided by agencies are appropriate municipal services;

 

ii.          ensure that the number of agencies and related governance costs add value to their purpose, capitalize on opportunities to combine similar businesses, eliminate overlaps with City programs and services, or, for revenue-generating boards, achieve the critical mass to be self-sustainable;

 

iii.         clarify City objectives for agencies, ensuring that the policy framework is appropriate to the business sector in which they operate;

 

iv.         put mechanisms in place to ensure alignment and commitment to City objectives;

 

v.          the recommendations of the Auditor General's reports be applied to the City's appropriate ABC's in the same manner as the City's internal divisions.

 

1b.        every five years, on a rotating basis, each Agency, Board, and Commission (ABC) is requested to create a strategic plan, the preparation of which includes outreach to stake holders. The City Manager is to report on each plan to Council, and make recommendations with respect to the purpose and effectiveness of each organization, and its 'fit' within the overall City structure."

 

2.         That Recommendation 3 of the report (March 9, 2011) from the City Manager be deleted and replaced as follows:

 

"3a.       The City Manager review board human resources policies and practices and recommend changes to ensure alignment with City objectives including: compensation, appointment and performance management of senior board staff and labour relations;

 

b.          The City Manager review board purchasing, information technology and  payroll practices and standards.

 

c.          Council direct that such practices be centralized as the City Manager deems appropriate and which are consistent with the staff report.

 

d.          Council direct every board to provide the City Manager with all information required to conduct the review."

 

3.         That recommendation 4 of the report (March 9, 2011) from the City Manager be deleted and replaced as follows:

 

"4.         The City Manager bring forward a City policy framework that ensures that City principles, policies and accountabilities are applied appropriately to each agency."

 

By Councillor Mammoliti:

 

That the City Manager submit a report directly to Council clarifying which body a Councillor represents while serving as a Board member on the City's Agencies, Boards, Commissions and Corporations

 

By Councillor Shiner:

 

That the City Manager report to the Executive Committee on the advisability of Council appointing the Chairs of each of the restricted boards, and what legislative changes the City should request of the Province to give the City the authority to appoint the Chairs

Origin

(March 9, 2011) Report from the City Manager

Summary

The use of various models of arm's-length governance structures to deliver certain programs or services is a longstanding practice of most governments.  It is also best practice to regularly review the number, structures and governance relationships of City agencies.

 

The City has 119 City and partnered agencies and corporations including 71 BIAs, 10 community centre boards, 8 arena boards and 30 other boards.  More than 33% of the budget and 48% of the staff are managed by City agencies and corporations. Since amalgamation there has been an on-going workplan to document the governance relationship between the City and its agencies and corporations through Relationship Frameworks and Shareholder Directions.  In addition, individual agencies have been the subject of governance reviews that resulted in changes to structures.

 

However, there has been no comprehensive rethink of why the City manages services through agencies and corporations, the most effective organization of these agencies, how agencies are aligned with City public policy and structures, and the strategies for ensuring City agencies are accountable to City Council.  It is also appropriate to review the cost-effectiveness of agency models to deliver services and how well they achieve transparency and accountability objectives.

 

The use of the agency model carries with it additional governance costs arising from separate audit requirements, resource-intensive board recruitment, and staff resources to support board meetings, set up websites, establish separate policies, review separate budgets, and manage separate accounting and HR systems.  A significant finding of the Fiscal Review Panel indicated that the City needed to "get a grip on" its agencies and take firmer control to reduce costs and strengthen accountability to Council. 

 

Provincial legislation gives the City authority to make changes to governance structures for most of its local boards.  As the City matures as an order of government, there is an opportunity to take a leadership approach to managing through agencies and corporations.  This report proposes that the City continue to undertake reviews of agency governance structures informed by the following objectives:  modernize governance to a form more appropriate to the size, complexity, and maturity of the City of Toronto; improve accountability and transparency; and gain efficiencies and reduce costs.

Background Information

(March 9, 2011) Staff Report - Managing Through Agencies and Corporations
https://www.toronto.ca/legdocs/mmis/2011/ex/bgrd/backgroundfile-36606.pdf
(March 21, 2011) Presentation - Managing Through Agencies and Corporations & Public Appointments Policy
https://www.toronto.ca/legdocs/mmis/2011/ex/bgrd/backgroundfile-36738.pdf

Communications

(March 12, 2011) E-mail from Peter Clarke (EX.Supp.EX4.6.1)
(March 18, 2011) E-mail from James L. Robinson, Executive Director, Downtown Yonge Business Improvement Area (EX.Main.EX4.6.2)
(March 19, 2011) E-mail from Sharon Yetman, Inventor/Innovator, Platform Technology (EX.Main.EX4.6.3)
(March 21, 2011) Letter from Maureen O'Reilly, President, TPLWU Local 4948 (EX.Main.EX4.6.4)

Speakers

Leslie Thompson, President, LESRISK, Debt & Risk Management Inc.
Councillor Shelley Carroll, Ward 33 - Don Valley East
Councillor Adam Vaughan, Ward 20 - Trinity-Spadina
Councillor Gloria Lindsay Luby, Ward 4 - Etobicoke Centre
Councillor Frances Nunziata, Ward 11 - York South-Weston
Councillor Paula Fletcher, Ward 30 - Toronto-Danforth
Councillor Joe Mihevc, Ward 21 - St. Paul's
Councillor Gary Crawford, Ward 36 - Scarborough Southwest
Councillor Mary Fragedakis, Ward 29 - Toronto-Danforth
Councillor Josh Matlow, Ward 22 - St. Paul's
Councillor Gord Perks, Ward 14 - Parkdale-High Park
Councillor Janet Davis, Ward 31 - Beaches-East York
Councillor Sarah Doucette, Ward 13 - Parkdale-High Park

Motions

1 - Motion to Amend Item moved by Councillor Paul Ainslie (Referred)

 That Recommendation 1 of the staff report be deleted and replaced as follows:

 

"1. (a) The City Manager at the beginning of each term is requested to report on the City's management of its ABCs, and make recommendations as necessary to:

 

i.          ensure that the services provided by agencies are appropriate municipal services;

 

ii.         ensure that the number of agencies and related governance costs add value to their purpose, capitalize on opportunities to combine similar businesses, eliminate overlaps with City programs and services, or, for revenue-generating boards, achieve the critical mass to be self-sustainable;

 

iii.        clarify City objectives for agencies, ensuring that the policy framework is appropriate to the business sector in which they operate;

 

iv.        put mechanisms in place to ensure alignment and commitment to City objectives;

 

v)         the recommendations of the Auditor General's reports be applied to the City's appropriate ABC's in the same manner as the City's internal divisions.

 

1. (b)    every five years, on a rotating basis, each Agency, Board, and Commission (ABC) is requested to create a strategic plan, the preparation of which includes outreach to stake holders. The City Manager is to report on each plan to Council, and make recommendations with respect to the purpose and effectiveness of each organization, and its 'fit' within the overall City structure."


2 - Motion to Amend Item moved by Councillor Paul Ainslie (Referred)

That Recommendation 3 of the staff report be deleted and replaced as follows:

 

"3       (a)        The City Manager review board human resources policies and practices and recommend changes to ensure alignment with City objectives including: compensation, appointment and performance management of senior board staff and labour relations;

 

(b)        The City Manager review board purchasing, information technology and  payroll practices and standards.

 

(c)        Council direct that such practices be centralized as the City Manager deems appropriate and which are consistent with the staff report

 

(d)       Council direct every board to provide the City Manager with all information required to conduct the review."


3 - Motion to Amend Item moved by Councillor Paul Ainslie (Referred)

That recommendation 4 of the staff report be deleted and replaced as follows:

 

"4. The City Manager bring forward a City policy framework that ensures that City principles, policies and accountabilities are applied appropriately to each agency."


4 - Motion to Amend Item (Additional) moved by Councillor Giorgio Mammoliti (Referred)

That the City Manager submit a report directly to Council clarifying which body a Councillor represents while serving as a Board member on the City's Agencies, Boards, Commissions and Corporations.


5 - Motion to Amend Item (Additional) moved by Councillor David Shiner (Referred)

That the City Manager report to the Executive Committee on the advisability of Council appointing the Chairs of each of the restricted boards, and what legislative changes the City should request of the Province to give the City the authority to appoint the Chairs.


6 - Motion to Refer Motion moved by Councillor Mike Del Grande (Carried)

That the City Manager report directly to Council on the motions by Councillors Ainslie, Shiner and Mammoliti.


7 - Motion to Amend Item moved by Councillor Doug Holyday (Carried)

That Recommendation 2 a.i. of the report (March 9, 2011) from the City Manager be deleted and replaced as follows:

 

"2.a.i.  Council appoint the chair of each board except where legislation restricts this power such as for the Police Services Board, the Board of Health, the Library Board, and Committee of Adjustment and for greater clarity does not apply to community-based boards such as AOCCs, BIAs, and arena boards."


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