Item - 2014.AU15.3

Tracking Status

  • City Council adopted this item on June 10, 2014 with amendments.
  • This item was considered by Audit Committee on May 28, 2014 and was adopted with amendments. It will be considered by City Council on June 10, 2014.

AU15.3 - Review of the Redevelopment of the Sony Centre for the Performing Arts

Decision Type:
Presentation
Status:
Amended
Wards:
All

City Council Decision

City Council on June 10, 11, 12 and 13, 2014, adopted the following:

 

1.         Given the seriousness of the findings of the Auditor General's Review of the Redevelopment of the Sony Centre, the specific recommendation from the Auditor General to conduct a review of the Sony Centre's Operating Agreement with the City, the enormity of the challenge of addressing the Redevelopment and related issues, the burden this places on a part-time voluntary board, and recognizing that the Theatres Working Group is still underway, City Council take the following actions:

 

a.         City Council remove the current Members and appoint an interim Board of Directors of the Hummingbird (Sony) Centre for the Performing Arts and an interim Board of Directors of the Hummingbird Performing Arts Centre Corporation (Sony Centre) as Interim Boards, such interim Boards to include the Council Members listed below and the City Manager, or his or her designate, the Deputy City Manager, Cluster A or her or his designate, and the Deputy City Manager and Chief Financial Officer or his or her designate as voting members, so that effective immediately, the Interim Board of Directors of the Hummingbird (Sony) Centre Board of Directors for the Performing Arts and the interim Board of Directors of the Hummingbird Performing Arts Centre Corporation (Sony Centre) consists of eight (8) members composed of:

 

-           Councillor Gary Crawford, as Chair;

-           Councillor Shelley Carroll;

-           Councillor Paula Fletcher;

-           Councillor Pam McConnell;

-           Councillor Frank Di Giorgio;

-           the City Manager, or his or her designate;

-           the Deputy City Manager, Cluster A or her or his designate; and

-           the Deputy City Manager and Chief Financial Officer or his or her designate,

 

such appointments to be in effect until November 30, 2014 and until successors are appointed.

 

2.         City Council appoint the City Clerk as the Secretary to the Board of Directors for the Hummingbird (Sony) Centre for the Performing Arts.

 

3.         City Council direct the City Clerk to provide meeting management support to the Board of Directors for the Hummingbird (Sony) Centre for the Performing Arts in a manner consistent with her support to City Council and its committees, including, but not limited to:

 

a.         publishing all Board meeting dates, times, and locations on the City's website;

 

b.         publishing Board meeting agendas and background documents on the City's website a minimum of 5 days before a scheduled meeting;

 

c.         publishing the minutes of Board meetings on the City's website;

 

d.         ensuring that all Board meetings begin and end in public and are accessible to the public, except those portions where the Board is permitted to meet in closed session under Section 190 of the City of Toronto Act, 2006.

 

4.         City Council direct the City Clerk to post all past Board agendas, background documents and public meeting minutes for meetings held from January 2007 to the present on the City's website.

 

5.         City Council direct the Board of Directors of the Hummingbird (Sony) Centre for the Performing Arts to adopt the best practice of requiring written documentation for agenda items to ensure that the Board's decision-making is open and transparent to the public.

 

6.         City Council direct the City Manager to develop a training and orientation program for the appointees to the Board of Directors of the Hummingbird (Sony) for the Performing Arts, such training and orientation to include:

 

a.         principles of good governance;

 

b.         the legislative context for the Hummingbird (Sony) Board and its relationship framework with the City;

 

c.         a review of ethics and the Code of Conduct;

 

d.         open and transparent meeting practices, including the Board's duties to comply with Section 190 of the City of Toronto Act, 2006;

 

e.         information management and open government practices and the requirement to adhere to the City's records retention policies and procedures; and

 

f.          budgetary, human resources and financial duties.

 

7.         City Council request the Board of Directors of the Hummingbird (Sony) Centre for the Performing Arts to request the Auditor General to conduct additional audits upon any further potential issues as it relates to the Sony Redevelopment project.

 

8.         City Council request the Board of Directors of the Hummingbird (Sony) Centre for the Performing Arts to provide reports to the City Manager and the Deputy City Manager and Chief Financial Officer on the budget, expenditures and project implementation status of the Sony Redevelopment project every two months, with any major financial implications to be considered through the City's quarterly variance reporting process and annual budget process as required.

 

9.         City Council request the Board of Directors of the Hummingbird (Sony) Centre for the Performing Arts to review, in consultation with the City Solicitor, the confidential documents that were before the Sony Board from January 2011 to the present, and to make publicly available as much of the content as possible at the next Board meeting.

 

10.       City Council request the City Manager, in consultation with the Board of Directors of the Hummingbird (Sony) Centre for the Performing Arts, to conduct a comprehensive review of the Centre's operating agreement following any Council decision on the future of the Centre.

 

11.       City Council request the Deputy City Manager and Chief Financial Officer to re-evaluate the role of the City's Facilities Management Division in all future construction projects at the City's agencies and corporations.

 

12.       City Council request the City Manager to make available a centralized resource containing City of Toronto Act requirements and City policies and procedures that City agencies and corporations are required to follow.

 

13.       City Council request the Deputy City Manager and Chief Financial Officer review transactions reported in the financial statements of the City's agencies and corporations which relate to the capital works program recorded in the City's accounts.

 

14.       City Council request the City Manager to report to the Audit Committee on proposed changes to its annual review of financial statements of agencies and corporations which will identify unusual transactions and the appropriateness of the accounting for these financial transactions.

 

15.       City Council request the City Manager, in consultation with the Auditor General, to communicate to boards of City agencies and corporations those reports from the Auditor General that have general applicability, and to include those reports along with relevant City Policies as part of the materials to be made available as outlined in the Action Plan with respect to Recommendation 3 of the Auditor General's Review of the Redevelopment of the Sony Centre for the Performing Arts.

 

16.       City Council request the Auditor General to report to the first meeting of the Audit Committee in 2015, on the status of Parts 10 and 11 above.

 

17.       City Council request the City Manager to forward this Item to the Boards of Directors of the Toronto Centre for the Arts and the St. Lawrence Centre for the Arts for information.

City Council Decision Advice and Other Information

Confidential Attachment 1 to the report (June 4, 2014) from the Auditor General [AU15.3c] and the confidential communication [AU15.3.2] from Sony Centre Management were made public with redactions on June 11, 2014.  

 

City Council recessed its public session and met as Committee of the Whole in closed session on June 10, 2014, and considered confidential information on this Item as it relates to the security of the property belonging to the City or one of its agencies and corporations and personal matters about an identifiable person.

 

City Council recessed its public session and met as Committee of the Whole in two closed sessions on June 11, 2014, and considered confidential information on this Item as it relates to the security of the property belonging to the City or one of its agencies and corporations and personal matters about an identifiable person.

Confidential Attachment - This report involves the security of property belonging to the City or one of its agencies and corporations. This report deals with personal matters about an identifiable person.

Background Information (Committee)

(May 1, 2014) Decision Letter from the Board of Directors, Hummingbird (Sony) Centre for the Performing Arts, regarding the Auditor General's Review of the Redevelopment of the Sony Centre for the Performing Arts
https://www.toronto.ca/legdocs/mmis/2014/au/bgrd/backgroundfile-69061.pdf
(April 24, 2014) Report from the Auditor General, headed "Review of the Redevelopment of the Sony Centre for the Performing Arts"
https://www.toronto.ca/legdocs/mmis/2014/au/bgrd/backgroundfile-69062.pdf
(May 28, 2014) Presentation Material submitted by the Auditor General (AU15.3b)
https://www.toronto.ca/legdocs/mmis/2014/au/bgrd/backgroundfile-69656.pdf

Background Information (City Council)

(June 2, 2014) Supplementary report from the Auditor General on Review of the Redevelopment of the Sony Centre for the Performing Arts: Supplemental Information Regarding Donations (AU15.3b)
https://www.toronto.ca/legdocs/mmis/2014/cc/bgrd/backgroundfile-70355.pdf
(June 4, 2014) Supplementary report from the Auditor General on Additional Information Pertaining to the Review of the Redevelopment of the Sony Centre for the Performing Arts (AU15.3c)
https://www.toronto.ca/legdocs/mmis/2014/cc/bgrd/backgroundfile-70356.pdf
(June 4, 2014) Confidential attachment 1 to AU15.3c made public with redactions on June 11, 2014
https://www.toronto.ca/legdocs/mmis/2014/cc/bgrd/backgroundfile-70515.pdf
(June 9, 2014) Memorandum from the City Clerk on Item AU15.3 - citizen resignations from the Sony Centre for the Performing Arts (AU15.3d)
https://www.toronto.ca/legdocs/mmis/2014/cc/bgrd/backgroundfile-70361.pdf
Attachment to memorandum from City Clerk - letter dated June 5, 2014 from Mr. Ron Forbes
https://www.toronto.ca/legdocs/mmis/2014/cc/bgrd/backgroundfile-70338.pdf
(June 10, 2014) Letter from the City Manager on the Review of the Redevelopment of the Sony Centre for the Performing Arts (AU15.3e)
https://www.toronto.ca/legdocs/mmis/2014/cc/bgrd/backgroundfile-70396.pdf
Attachment to AU15.3e - Minutes of the Sony Board meeting scheduled for June 9, 2014
https://www.toronto.ca/legdocs/mmis/2014/cc/bgrd/backgroundfile-70397.pdf

Communications (City Council)

(June 1, 2014) Letter from Ron Forbes, Chair, Sony Centre for the Performing Arts Board of Directors (CC.Main.AU15.3.1)
https://www.toronto.ca/legdocs/mmis/2014/cc/comm/communicationfile-47853.pdf
(June 9, 2014) Submission from Sony Centre Management - Redacted communication previously submitted as confidential in its entirety (CC.Supp.AU15.3.2)
https://www.toronto.ca/legdocs/mmis/2014/cc/comm/communicationfile-47934.pdf

Motions (City Council)

Report of Committee of the Whole
June 10, 2014 at 7:55 p.m. – Speaker Nunziata advised that City Council had not completed its closed session consideration of Item AU15.3 - Review of the Redevelopment of the Sony Centre for the Performing Arts in the closed session.

Report of Committee of the Whole

June 11, 2014 at 12:26 p.m. – Speaker Nunziata advised that City Council had completed its closed session consideration of Item AU15.3 - Review of the Redevelopment of the Sony Centre for the Performing Arts in the closed session.


Report of Committee of the Whole

June 11, 2014 at 6:37 p.m. – Speaker Nunziata advised that City Council had completed its closed session consideration of Item AU15.3 - Review of the Redevelopment of the Sony Centre for the Performing Arts in the closed session.


1 - Motion to Amend Item moved by Councillor Pam McConnell (Carried)

That City Council request the City Solicitor and the Auditor General to meet with the City Clerk over the lunch recess on June 11, 2014 to review the Confidential Attachment to the report (June 4, 2014) from the Auditor General [AU15.3c] to establish what information can be made public.

Vote (Amend Item) Jun-11-2014 12:26 PM

Result: Carried Majority Required - AU15.3 - McConnell - motion 1
Total members that voted Yes: 29 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Shelley Carroll, Gary Crawford, Vincent Crisanti, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Norman Kelly, Chin Lee, Peter Leon, Gloria Lindsay Luby, Giorgio Mammoliti, Pam McConnell, Mary-Margaret McMahon, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Gord Perks, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson, Kristyn Wong-Tam
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 15 Members that were absent are Raymond Cho, Josh Colle, Janet Davis, Glenn De Baeremaeker, Doug Ford, Rob Ford, Mary Fragedakis, Mark Grimes, Mike Layton, Josh Matlow, Joe Mihevc, Cesar Palacio, John Parker, James Pasternak, Karen Stintz

2a - Motion to Amend Item moved by Deputy Mayor Norman Kelly (Amended)

City Council delete Parts a and b of Audit Committee Recommendation 1 and replace them with the following:

 

a.         City Council remove the current Members and appoint an interim Board of Directors of the Hummingbird Centre for the Performing Arts Corporation (Sony Centre) as an Interim Board, such interim Board to include the Council Members listed below and the City Manager, or his or her designate, the Deputy City Manager, Cluster A or her or his designate, and the Deputy City Manager and Chief Financial Officer or his or her designate as voting members,

 

so that effective immediately, the Interim Board of Directors of the  Hummingbird (Sony) Centre Board of Directors and the interim Board of Directors of the Hummingbird Centre for the Performing Arts Corporation (Sony Centre) consists of eight (8) members composed of: 

 

-           Councillor Gary Crawford, as Chair;

 

             -          Councillor Shelley Carroll; 

 

           Councillor Paula Fletcher;

 

           Councillor Pam McConnell;

 

-           Councillor David Shiner;

 

-            the City Manager, or his or her designate;

 

-            the Deputy City Manager, Cluster A or her or his designate; and

 

-            the Deputy City Manager and Chief Financial Officer or his or her designate,

 

such appointments to be in effect until November 30, 2014 and until successors are appointed.

 

Amended by motion 6 by Councillor Maria Augimeri

Vote (Amend Item) Jun-11-2014 8:16 PM

Result: Carried Majority Required - AU15.3 - Kelly - motion 2a, as amended by motion 6
Total members that voted Yes: 31 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Shelley Carroll, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mark Grimes, Norman Kelly, Mike Layton, Chin Lee, Peter Leon, Pam McConnell, Joe Mihevc, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Gord Perks, Anthony Perruzza, Michael Thompson, Kristyn Wong-Tam
Total members that voted No: 6 Members that voted No are Josh Colle, Giorgio Mammoliti, Josh Matlow, Mary-Margaret McMahon, Jaye Robinson, David Shiner
Total members that were Absent: 7 Members that were absent are Michelle Berardinetti, Raymond Cho, Doug Ford, Rob Ford, Gloria Lindsay Luby, Peter Milczyn, Karen Stintz

2b - Motion to Amend Item (Additional) moved by Deputy Mayor Norman Kelly (Carried)

That City Council direct the City Manager to develop a training and orientation program for the appointees to the Board of Directors of the Hummingbird (Sony) for the Performing Arts, such training and orientation to include:

 

a.         principles of good governance;

 

b.         the legislative context for the Sony Board and its relationship framework with the City;

 

c.         a review of ethics and the Code of Conduct;

 

d.         open and transparent meeting practices, including the Board's duties to comply with Section 190 of the City of Toronto Act, 2006;

 

e.         Information management and open government practices and the requirement to adhere to the City's records retention policies and procedures; and

 

f.          budgetary, human resources and financial duties.

Vote (Amend Item (Additional)) Jun-11-2014 8:17 PM

Result: Carried Majority Required - AU15.3 - Kelly - motion 2b
Total members that voted Yes: 37 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Shelley Carroll, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mark Grimes, Norman Kelly, Mike Layton, Chin Lee, Peter Leon, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson, Kristyn Wong-Tam
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 7 Members that were absent are Michelle Berardinetti, Raymond Cho, Doug Ford, Rob Ford, Gloria Lindsay Luby, Peter Milczyn, Karen Stintz

3 - Motion to Amend Item (Additional) moved by Councillor Pam McConnell (Carried)

That:

 

1.         City Council appoint the City Clerk as the Secretary to the Board of Directors for the Sony Centre for the Performing Arts.

 

2.         City Council direct the City Clerk to provide meeting management support to the Board of Directors for the Sony Centre for the Performing Arts in a manner consistent with her support to City Council and its committees, including, but not limited to:

 

            a.         publishing all Board meeting dates, times, and locations on the City's website.

 

b.         publishing Board meeting agendas and background documents on the City's website a minimum of 5 days before a scheduled meeting.

 

c.         publishing the minutes of Board meetings on the City's website.

 

d.         ensuring that all Board meetings begin and end in public and are accessible to the public, except those portions where the Board is permitted to meet in closed session under Section 190 of the City of Toronto Act, 2006.

 

3.         City Council direct the City Clerk to post all past Board agendas, background documents and public meeting minutes for meetings held from January 2007 to the present on the City's website.

 

4.         City Council direct the Board of Directors of the Sony Centre for the Performing Arts to adopt the best practice of requiring written documentation for agenda items to ensure that the Board's decision-making is open and transparent to the public.

Vote (Amend Item (Additional)) Jun-11-2014 8:18 PM

Result: Carried Majority Required - AU15.3 - McConnell - motion 3
Total members that voted Yes: 37 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Shelley Carroll, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mark Grimes, Norman Kelly, Mike Layton, Chin Lee, Peter Leon, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson, Kristyn Wong-Tam
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 7 Members that were absent are Michelle Berardinetti, Raymond Cho, Doug Ford, Rob Ford, Gloria Lindsay Luby, Peter Milczyn, Karen Stintz

4 - Motion to Amend Item moved by Councillor Peter Leon (Carried)

That:

 

1.         City Council request the Board of Directors of the Hummingbird (Sony) Centre for the Performing Arts to request the Auditor General to conduct additional audits upon any further potential issues as it relates to the Sony Redevelopment project.

 

2.         City Council request the Board of Directors of the Hummingbird (Sony) Centre for the Performing Arts to provide reports to the City Manager and the Deputy City Manager and Chief Financial Officer on the budget, expenditures and project implementation status of the Sony Redevelopment project every two months, with any major financial implications to be considered through the City's quarterly variance reporting process and annual budget process as required.

Vote (Amend Item) Jun-11-2014 8:19 PM

Result: Carried Majority Required - AU15.3 - Leon - motion 4
Total members that voted Yes: 36 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Shelley Carroll, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mark Grimes, Norman Kelly, Mike Layton, Chin Lee, Peter Leon, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson, Kristyn Wong-Tam
Total members that voted No: 1 Members that voted No are John Parker
Total members that were Absent: 7 Members that were absent are Michelle Berardinetti, Raymond Cho, Doug Ford, Rob Ford, Gloria Lindsay Luby, Peter Milczyn, Karen Stintz

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

That City Council request the Board of Directors of the Hummingbird (Sony) Centre for the Performing Arts to review, in consultation with the City Solicitor, the confidential documents that were before the Sony Board from January 2011 to the present, and to make publicly available as much of the content as possible at the next Board meeting.

Vote (Amend Item (Additional)) Jun-11-2014 8:20 PM

Result: Carried Majority Required - AU15.3 - Shiner - motion 5
Total members that voted Yes: 37 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Shelley Carroll, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mark Grimes, Norman Kelly, Mike Layton, Chin Lee, Peter Leon, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson, Kristyn Wong-Tam
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 7 Members that were absent are Michelle Berardinetti, Raymond Cho, Doug Ford, Rob Ford, Gloria Lindsay Luby, Peter Milczyn, Karen Stintz

6 - Motion to Amend Motion moved by Councillor Maria Augimeri (Carried)

That City Council amend motion 2a by Deputy Mayor Norman Kelly by deleting the name "Councillor David Shiner" and inserting the name "Councillor Frank Di Giorgio".

Vote (Amend Motion) Jun-11-2014 8:15 PM

Result: Carried Majority Required - AU15.3 - Augimeri - motion 6
Total members that voted Yes: 36 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Shelley Carroll, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mark Grimes, Norman Kelly, Mike Layton, Chin Lee, Peter Leon, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson, Kristyn Wong-Tam
Total members that voted No: 1 Members that voted No are Josh Colle
Total members that were Absent: 7 Members that were absent are Michelle Berardinetti, Raymond Cho, Doug Ford, Rob Ford, Gloria Lindsay Luby, Peter Milczyn, Karen Stintz

Motion to Adopt Item as Amended (Carried)

Vote (Adopt Item as Amended) Jun-11-2014 8:21 PM

Result: Carried Majority Required - AU15.3 - Adopt the item as amended
Total members that voted Yes: 36 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Shelley Carroll, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mark Grimes, Norman Kelly, Mike Layton, Chin Lee, Peter Leon, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Michael Thompson, Kristyn Wong-Tam
Total members that voted No: 1 Members that voted No are David Shiner
Total members that were Absent: 7 Members that were absent are Michelle Berardinetti, Raymond Cho, Doug Ford, Rob Ford, Gloria Lindsay Luby, Peter Milczyn, Karen Stintz

3a - Review of the Redevelopment of the Sony Centre for the Performing Arts

Background Information (Committee)
(May 23, 2014) Decision Letter from the Board of Directors, Hummingbird (Sony) Centre for the Performing Arts, regarding the Auditor General's Review of the Redevelopment of the Sony Centre for the Performing Arts
https://www.toronto.ca/legdocs/mmis/2014/au/bgrd/backgroundfile-69606.pdf

AU15.3 - Review of the Redevelopment of the Sony Centre for the Performing Arts

Decision Type:
Presentation
Status:
Amended
Wards:
All

Committee Recommendations

The Audit Committee recommends that:

 

1.         Given the seriousness of the findings of the Auditor General's Review of the Redevelopment of the Sony Centre, the specific recommendation from the Auditor General to conduct a review of the Sony Centre's Operating Agreement with the City, the enormity of the challenge of addressing the Redevelopment and related issues, the burden this places on a part-time voluntary board, and recognizing that the Theatres Working Group is still underway, City Council take the following actions:

 

a.         City Council remove all the current members of the Board of Directors of the Hummingbird (Sony) Centre Board of Directors and the Board of Directors of the Hummingbird Centre for the Performing Arts Corporation (Sony Centre), effective immediately.

 

b.         City Council appoint an interim Board of Directors for the Hummingbird (Sony) Centre, and the Board of Directors of the Hummingbird Centre for the Performing Arts Corporation (Sony Centre) effectively immediately, composed of:

 

-           Councillor Gary Crawford, as Chair;

-           Councillor Pam McConnell;

-           Councillor Shelley Carroll;

-           the City Manager, or his or her designate;

-           the Deputy City Manager, Cluster A or her or his designate; and

            -           the Deputy City Manager and Chief Financial Officer or his or her designate,

 

such appointments to be in effect until November 30, 2014 and until successors are appointed.

 

2.         City Council request the City Manager, in consultation with the Board of Directors of the Sony Centre for the Performing Arts, to conduct a comprehensive review of the Centre's operating agreement following any Council decision on the future of the Centre.

 

3.         City Council request the Deputy City Manager and Chief Financial Officer to re-evaluate the role of the City's Facilities Management Division in all future construction projects at the City's agencies and corporations.

 

4.         City Council request the City Manager to make available a centralized resource containing City of Toronto Act requirements and City policies and procedures that City agencies and corporations are required to follow.

 

5.         City Council request the Deputy City Manager and Chief Financial Officer review transactions reported in the financial statements of the City's agencies and corporations which relate to the capital works program recorded in the City's accounts.

 

6.         City Council request the City Manager to report to the Audit Committee on proposed changes to its annual review of financial statements of Agencies and Corporations which will identify unusual transactions and the appropriateness of the accounting for these financial transactions.

 

7.         City Council request the City Manager, in consultation with the Auditor General, to communicate to boards of City agencies and corporations those reports from the Auditor General that have general applicability, and to include those reports along with relevant City Policies as part of the materials to be made available as outlined in the Action Plan with respect to Recommendation 3 of the Auditor General's Review of the Redevelopment of the Sony Centre for the Performing Arts.

 

8.         City Council request the Auditor General to report to the first meeting of the Audit Committee in 2015, on the status of Recommendations 2 and 3 contained in his report (April 24, 2014).

 

9.         City Council request the City Manager to forward this report to the Boards of Directors of the Toronto Centre for the Arts and the St. Lawrence Centre for the Arts for information. 

Decision Advice and Other Information

The Audit Committee:

 

1.         Requested the Auditor General to report directly to City Council for its meeting on June 10, 2014, on any management practices at the Sony Centre that have been uncovered in any related audits or investigations in which the City has been involved.

 

2.         Requested the City Manager:

 

a.         to obtain a copy of the public agenda and background materials for the upcoming Sony Board Meeting on June 9, 2014 and forward the material to all Members of Council; and

 

b.         to obtain a copy of the public minutes for the Sony Board Meeting of June 9, 2014 for submission to City Council as part of its consideration of this item on June 10, 2014.

 

The Auditor General made a presentation to the Audit Committee on the Review of the Redevelopment of the Sony Centre for the Performing Arts.

Origin

(May 1, 2014) Letter from the Board of Directors, Hummingbird (Sony) Centre for the Performing Arts

Summary

The Board of Directors of the Hummingbird (Sony) Centre for the Performing Arts, on May 1, 2014, considered a report (April 24, 2024) from the Auditor General, headed "Review of the Redevelopment of the Sony Centre for the Performing Arts". 

 

The Board endorsed Recommendations for City Council (Recommendations 1, 2, 3, 12 and 14), and directed that the report be forwarded to the Audit Committee.

 

In addition, the Board adopted the following:

 

1.         The Board of Directors of the Sony Centre for the Performing Arts, in consultation with the City Manager, prepare a long-term strategic plan and a five-year business plan as requested by City Council.  Such plan to include strategies to improve operating results, as well as a funding plan for the capital program.

 

2.         The Board of Directors of the Sony Centre for the Performing Arts, ensure that where a business plan is amended or discontinued, that a replacement plan be prepared and presented for City Council approval.  Such business plan, and any subsequent amendments, be consistent with any Council-approved strategic objectives for the Centre.

 

3.         The Board of Directors of the Sony Centre for the Performing Arts request the Chief Executive Officer to report the total funding received from all sources as well as the total of all costs related to all phases of the redevelopment.

 

4.         The Board of Directors of the Sony Centre for the Performing Arts request the Chief Executive Officer to report on the status of required and optional deferred lifecycle maintenance works identified in previous building condition review reports.  Such report to include:

 

a.         Explanations for why work originally anticipated was omitted from the redevelopment.

 

b.         Identification of required and optional lifecycle maintenance works that have been included in the current 10-year Capital Plan.

 

c.         Estimates of the cost to complete the remaining work.

 

5.         The Board of Directors of the Sony Centre for the Performing Arts request the Chief Executive Officer submit for Board approval a comprehensive procurement policy.  The development of this policy be conducted in consultation with the City Manager.  The procurement policy to include but not be limited to:

 

a.         Acceptable methods of procurement including appropriate dollar value thresholds for requiring open, competitive procurement.

 

b.         Circumstances where sole sourcing is allowed and the reporting requirements and authorizations required to approve sole source awards.

 

c.         Approval authorities required where purchases exceed previously authorized commitment levels.

 

d.         The level of documentation required to be retained in support of procurement decisions.

 

6.         The Board of Directors of the Sony Centre for the Performing Arts request the Chief Executive Officer to review the administrative controls over the procurement process and ensure that such controls are appropriate.  In addition, an internal quality control process be established to ensure compliance with such controls.

 

7.         The Board of Directors of the Sony Centre for the Performing Arts request the Chief Executive Officer to implement processes to ensure future compliance with the City's Policy on Donations to the City for Community Benefits.

 

8.         The Board of Directors of the Sony Centre for the Performing Arts request the Chief Executive Officer to confirm the appropriate accounting treatment of identified transactions with the Centre's external auditors.

 

The Board also:

 

-           Requested the Chair to call a Special Meeting of the Board of Directors of the Hummingbird Centre for the Performing Arts to further consider the report (April 24, 2014) from the Auditor General and possible additional recommendations.

 

-           Requested that representatives from the City Solicitor, the Chief Corporate Officer, and the City Manager's offices be invited to attend the Special Meeting of the Board to respond to questions, in particular, regarding the proposed Public Plaza.

Background Information

(May 1, 2014) Decision Letter from the Board of Directors, Hummingbird (Sony) Centre for the Performing Arts, regarding the Auditor General's Review of the Redevelopment of the Sony Centre for the Performing Arts
https://www.toronto.ca/legdocs/mmis/2014/au/bgrd/backgroundfile-69061.pdf
(April 24, 2014) Report from the Auditor General, headed "Review of the Redevelopment of the Sony Centre for the Performing Arts"
https://www.toronto.ca/legdocs/mmis/2014/au/bgrd/backgroundfile-69062.pdf
(May 28, 2014) Presentation Material submitted by the Auditor General (AU15.3b)
https://www.toronto.ca/legdocs/mmis/2014/au/bgrd/backgroundfile-69656.pdf

Motions

Motion to Meet in Closed Session moved by Councillor Mary-Margaret McMahon (Carried)

11:17 a.m. - That the Audit Committee recess its public session to meet in closed session to consider the following Item:

 

AU15.3 – Review of the Redevelopment of the Sony Centre for the Performing Arts

Reason for Confidential Information: Security of Property of the municipality or local board.

 

The Audit Committee recessed its public session to meet in closed session to consider the above matter.

 

The Audit Committee reconvened in public session at 12:29 p.m.  Chair McMahon advised that the Committee had not yet completed its closed session consideration of confidential information related to this Item. 


Motion to Meet in Closed Session moved by Councillor Mary-Margaret McMahon (Carried)

1:56 p.m. - That the Audit Committee recess its public session to meet in closed session to consider the following Item:

 

AU15.3 – Review of the Redevelopment of the Sony Centre for the Performing Arts

Reason for Confidential Information: Security of Property of the municipality or local board.

 

The Audit Committee recessed its public session to meet in closed session to consider the above matter.

 

The Audit Committee reconvened in public session at 2:12 p.m. Chair McMahon advised that the Committee had completed its closed session consideration of confidential information related to this Item.   No motions were moved during the closed session. The Committee would now proceed with the public debate on this Item.


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

It is recommended that, given the seriousness of the findings of the Auditor General's Review of the Redevelopment of the Sony Centre, the specific recommendation from the Auditor General to conduct a review of the Sony Centre's Operating Agreement with the City, the enormity of the challenge of addressing the Redevelopment and related issues, the burden this places on a part-time voluntary board, and recognizing that the Theatres Working Group is still underway, City Council take the following actions:

 

1.         City Council remove all the current members of the Board of Directors of the Hummingbird (Sony) Centre Board of Directors and the Board of Directors of the Hummingbird Centre for the Performing Arts Corporation (Sony Centre), effective immediately.

 

2.         City Council appoint an interim Board of Directors for the Hummingbird (Sony) Centre, and the Board of Directors of the Hummingbird Centre for the Performing Arts Corporation (Sony Centre) effectively immediately, composed of:

 

a.         Councillor Gary Crawford, as Chair;

b.         Councillor Pam McConnell;

c.         Councillor Shelley Carroll;

d.         the City Manager, or his or her designate;

e.         the Deputy City Manager, Cluster A or her or his designate; and

            f.         the Deputy City Manager and Chief Financial Officer or his or her designate,

 

such appointments to be in effect until November 30, 2014 and until successors are appointed.


2a - Motion to Amend Item (Additional) moved by Councillor Mary Fragedakis (Carried)

That the Audit Committee request the City Manager:

 

1.         to obtain a copy of the public agenda and background materials for the upcoming Sony Board Meeting on June 9, 2014 and forward the material to all Members of Council; and

 

2.         to obtain a copy of the public minutes for the Sony Board Meeting of June 9, 2014 for submission to City Council as part of its consideration of this item on June 10, 2014.


2b - Motion to Amend Item (Additional) moved by Councillor Mary Fragedakis (Carried)

That the Audit Committee recommend that:

 

1.         City Council request the Auditor General to report to the first meeting of the Audit Committee in 2015, on the status of Recommendations 2 and 3 contained in his report (April 24, 2014).


2c - Motion to Amend Item (Additional) moved by Councillor Mary Fragedakis (Carried)

That the Audit Committee request the Auditor General to report directly to City Council for its meeting on June 10, on any management practices at the Sony Centre that have been uncovered in any related audits or investigations in which the City has been involved.


3 - Motion to Amend Item (Additional) moved by Councillor Mary-Margaret McMahon (Carried)

That:

 

1          City Council request the City Manager, in consultation with the Auditor General, to communicate to boards of City agencies and corporations those reports from the Auditor General that have general applicability, and to include those reports along with relevant City Policies as part of the materials to be made available as outlined in the Action Plan with respect to Recommendation 3 of the Auditor General's Review of the Redevelopment of the Sony Centre for the Performing Arts.


4 - Motion to Adopt Item as Amended (Carried)

That the Audit Committee adopt the Item as amended, including:

 

-           the Recommendations contained in the letters from the Board of Directors, Hummingbird (Sony) Centre for the Performing Arts (May 1, 2014 and May 23, 2014);

 

-           motion 1 by Councillor Carroll, motions 2a, 2b and 2c by Councillor Fragedakis, and motion 3 by Councillor McMahon.

Vote (Adopt Item as Amended) May-28-2014

Result: Carried Majority Required - AU15.3 - Adopt the Item, as amended
Total members that voted Yes: 5 Members that voted Yes are Shelley Carroll, Mary Fragedakis, Josh Matlow, Mary-Margaret McMahon (Chair), John Parker
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 1 Members that were absent are Vincent Crisanti

3a - Review of the Redevelopment of the Sony Centre for the Performing Arts

Origin
(May 23, 2014) Letter from the Board of Directors, Hummingbird (Sony) Centre for the Performing Arts
Summary

The Board of Directors of the Hummingbird (Sony) Centre for the Performing Arts, on May 23, 2014, further considered the report (April 24, 2024) from the Auditor General, headed "Review of the Redevelopment of the Sony Centre for the Performing Arts".

 

The Board forwarded one Recommendation to the Audit Committee for consideration.

 

In addition, the Board:

 

1.         Requested the Chief Executive Officer to submit the report requested in Recommendation 7 of the report (April 24, 2014) from the Auditor General to the Board for its next meeting on June 9, 2014.

 

2.         Requested the Chief Executive Officer to report to the next meeting of the Board on June 9, 2014, on all expenditures incurred in the $3.4 million Sony Centre Business Plan.

 

3.         Requested the Auditor General to report to the next meeting of the Board on June 9, 2014, if possible, on any other issues or matters he has identified which were outside of the scope of the redevelopment review of the Sony Centre for the Performing Arts.

 

4.         Requested the developer of the L tower, Mr Alfredo Romano (Castlepoint), to assume, at his own expense, the cost of overseeing the construction of the public plaza, at no cost to the Sony Centre, and that he report back to the Board for its next meeting on June 9, 2014, on three quotes for the reconstruction of the public plaza.

 

5.         Deferred consideration of Motion 1 by Councillor McConnell until the next meeting of the Board on June 9, 2014:

 

"It is recommended that:

 

1.         All Board meeting dates, times, and locations be published on the City's website.

 

2.         All Board meetings be open and accessible to the public, except portions where closed session is required.

 

3.         All Board meeting agendas and reports be posted on the City's website one week before the scheduled meeting.

 

4.         All past Board agendas, reports, and meeting minutes from January 2007 to the present be posted on the City's website."

Background Information
(May 23, 2014) Decision Letter from the Board of Directors, Hummingbird (Sony) Centre for the Performing Arts, regarding the Auditor General's Review of the Redevelopment of the Sony Centre for the Performing Arts
https://www.toronto.ca/legdocs/mmis/2014/au/bgrd/backgroundfile-69606.pdf
Source: Toronto City Clerk at www.toronto.ca/council