Item - 2015.AU1.7

Tracking Status

  • City Council adopted this item on March 31, 2015 with amendments.
  • This item was considered by Audit Committee on February 27, 2015 and was adopted with amendments. It will be considered by City Council on March 31, 2015.

AU1.7 - Operational Review of Build Toronto Inc.

Decision Type:
ACTION
Status:
Amended
Wards:
All

City Council Decision

City Council on March 31, April 1 and 2, 2015, adopted the following:

 

1.  City Council request the City Manager, in consultation with Build Toronto's Chief Executive Officer, to review the Shareholder Direction on a periodic basis to ensure that the mandate and City objectives remain consistent with City Council's ongoing priorities and expectations for Build Toronto.  Any changes required should be submitted to City Council for approval.

 

2.  City Council request the City Manager to include in his review of the Build Toronto Shareholder Direction and mandate, and within the context of the City's Capital priorities, ways to enhance the development of all forms of affordable housing in Toronto.

 

3.  City Council request the City Manager, in consultation with Build Toronto's Chief Executive Officer to:

 

                          a.  formalize a dividend policy consistent with the mandate and objectives of Build Toronto; and

 

                          b.  establish processes to enable the periodic review of the dividend policy.

 

4.  City Council request the City Manager to ensure that the ongoing review of real estate holdings and the City-Wide Office Modernization Plan consider alternate accommodation solutions to allow for the development of high value sites.  City Council request the City Manager to report to City Council and the Board of Build Toronto annually on the progress made to identify sites currently in operational or program use that have significant development or value potential.

 

5.  City Council request the City Manager to ensure that a comprehensive City-Wide Real Estate Strategy is prepared which contemplates:

 

             a.  protocols for cooperation by City divisions, agencies and corporations which clarifies how they would be compensated for the operating and capital impacts of transferring properties to Build Toronto;

 

              b.  protocols for real estate development activities carried out by City agencies and corporations and whether such activities should be centralized or coordinated with Build Toronto; and

 

c.  the return of a portion of revenue to the originating body which declares a property surplus, in order to encourage an increase in identification of surplus property by the City's agencies and corporations, such as the Toronto Transit Commission.

 

6.  City Council request the City Manager, in consultation with the Chief Corporate Officer and Build Toronto's Chief Executive Officer, to ensure that properties already declared surplus are transferred to Build Toronto on timely basis.

 

7.  City Council request the City Manager, in consultation with the Chief Executive Officer of Build Toronto, to report to Council the estimated open market financial impact of terms and conditions of transfer agreements together with any Section 37 or other obligations on properties transferred to Build Toronto.

 

8.  City Council request the City Manager, in consultation with the Chief Executive Officers of Build Toronto, Invest Toronto, and Toronto Port Lands Company to review areas where opportunities exist to consolidate or coordinate operations and report to City Council on the results of these consultations.

 

9.  City Council request the City Manager to report to the appropriate Committee with a determination of the value to the City generated by Build Toronto, and on whether existing City divisions and/or agencies or an alternate model would be better able to take over any of Build Toronto's functions.

Background Information (Committee)

(January 29, 2015) Letter from the President and CEO, Build Toronto, and the Chairman, Build Toronto Inc. Board of Directors, advising of the actions taken by the Board during consideration of the Auditor General's report, headed "Operational Review of Build Toronto Inc."
https://www.toronto.ca/legdocs/mmis/2015/au/bgrd/backgroundfile-76202.pdf
(November 17, 2014) Report from the Auditor General - Operational Review of Build Toronto Inc.
https://www.toronto.ca/legdocs/mmis/2015/au/bgrd/backgroundfile-76203.pdf
Presentation material submitted by the Auditor General
https://www.toronto.ca/legdocs/mmis/2015/au/bgrd/backgroundfile-77625.pdf

Motions (City Council)

Motion to Adopt Item (Carried)

Vote (Adopt Item) Apr-01-2015 9:55 AM

Result: Carried Majority Required - AU1.7 - Adopt the item
Total members that voted Yes: 36 Members that voted Yes are Paul Ainslie, Maria Augimeri, Jon Burnside, John Campbell, Christin Carmichael Greb, Gary Crawford, Joe Cressy, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, Mary Fragedakis, Mark Grimes, Stephen Holyday, Jim Karygiannis, Norman Kelly, Mike Layton, Chin Lee, 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, Jaye Robinson, David Shiner, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 9 Members that were absent are Ana Bail„o, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, John Filion, Paula Fletcher, Rob Ford, Anthony Perruzza

Motion to Reconsider Item moved by Councillor Joe Mihevc (Carried)

That in accordance with Chapter 27, Council Procedures, City Council reconsider Item AU1.7.

Vote (Reconsider Item) Apr-01-2015 2:39 PM

Result: Carried Two-Thirds Required - AU1.7 - Reconsider the item
Total members that voted Yes: 41 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Joe Cressy, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Rob Ford, Mary Fragedakis, Mark Grimes, Stephen Holyday, Norman Kelly, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, 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: 2 Members that voted No are Giorgio Mammoliti, Denzil Minnan-Wong
Total members that were Absent: 2 Members that were absent are Jim Karygiannis, John Tory

1 - Motion to Amend Item (Additional) moved by Councillor Paula Fletcher (Amended)

That City Council request the City Manager to include in his review of the Build Toronto Shareholder Direction and mandate ways to enhance the development of affordable housing and shelters in Toronto.

 

Amended by motion 2 by Councillor Bailão and motion 3 by Deputy Mayor Minnan-Wong.

Vote (Amend Item (Additional)) Apr-02-2015 3:53 PM

Result: Carried Majority Required - AU1.7 - Fletcher - motion 1, as amended
Total members that voted Yes: 25 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Raymond Cho, Josh Colle, Joe Cressy, Janet Davis, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Rob Ford, Mary Fragedakis, Mark Grimes, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Frances Nunziata (Chair), Gord Perks, Anthony Perruzza, David Shiner, Michael Thompson, Kristyn Wong-Tam
Total members that voted No: 8 Members that voted No are Jon Burnside, John Campbell, Gary Crawford, Stephen Holyday, Norman Kelly, Josh Matlow, Ron Moeser, Jaye Robinson
Total members that were Absent: 12 Members that were absent are Christin Carmichael Greb, Shelley Carroll, Vincent Crisanti, Glenn De Baeremaeker, Jim Karygiannis, Mike Layton, Chin Lee, Giorgio Mammoliti, Denzil Minnan-Wong, Cesar Palacio, James Pasternak, John Tory

2 - Motion to Amend Motion moved by Councillor Ana Bail„o (Carried)

That motion 1 by Councillor Fletcher be amended by adding the words "all forms of" and deleting the words "and shelters" so that the motion would now read:

 

That City Council request the City Manager to include in his review of the Build Toronto Shareholder Direction and mandate ways to enhance the development of all forms of affordable housing in Toronto.

Vote (Amend Motion) Apr-02-2015 3:51 PM

Result: Carried Majority Required - AU1.7 - Bail„o - motion 2
Total members that voted Yes: 28 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Jon Burnside, Raymond Cho, Josh Colle, Joe Cressy, Janet Davis, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Rob Ford, Mary Fragedakis, Mark Grimes, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Ron Moeser, Frances Nunziata (Chair), Gord Perks, Anthony Perruzza, David Shiner, Michael Thompson, Kristyn Wong-Tam
Total members that voted No: 5 Members that voted No are John Campbell, Gary Crawford, Stephen Holyday, Norman Kelly, Jaye Robinson
Total members that were Absent: 12 Members that were absent are Christin Carmichael Greb, Shelley Carroll, Vincent Crisanti, Glenn De Baeremaeker, Jim Karygiannis, Mike Layton, Chin Lee, Giorgio Mammoliti, Denzil Minnan-Wong, Cesar Palacio, James Pasternak, John Tory

3 - Motion to Amend Motion moved by Deputy Mayor Denzil Minnan-Wong (Carried)

That motion 1 by Councillor Paula Fletcher be amended by the adding the words "and within the context of the City's Capital priorities", after the word "mandate" so that it now reads as follows:

 

That City Council request the City Manager to include in his review of the Build Toronto Shareholder Direction and mandate, and within the context of the City's Capital priorities, ways to enhance the development of affordable housing and shelters in Toronto.

Vote (Amend Motion) Apr-02-2015 3:52 PM

Result: Carried Majority Required - AU1.7 - Minnan-Wong - motion 3
Total members that voted Yes: 17 Members that voted Yes are Paul Ainslie, Ana Bail„o, Michelle Berardinetti, Jon Burnside, Raymond Cho, Josh Colle, Gary Crawford, Frank Di Giorgio, Rob Ford, Mark Grimes, Norman Kelly, Josh Matlow, Ron Moeser, Frances Nunziata (Chair), Jaye Robinson, David Shiner, Michael Thompson
Total members that voted No: 16 Members that voted No are Maria Augimeri, John Campbell, Joe Cressy, Janet Davis, Justin J. Di Ciano, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Stephen Holyday, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Gord Perks, Anthony Perruzza, Kristyn Wong-Tam
Total members that were Absent: 12 Members that were absent are Christin Carmichael Greb, Shelley Carroll, Vincent Crisanti, Glenn De Baeremaeker, Jim Karygiannis, Mike Layton, Chin Lee, Giorgio Mammoliti, Denzil Minnan-Wong, Cesar Palacio, James Pasternak, John Tory

Motion to Adopt Item as Amended (Carried)

Vote (Adopt Item as Amended) Apr-02-2015 3:54 PM

Result: Carried Majority Required - AU1.7 - Adopt the item as amended
Total members that voted Yes: 33 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Jon Burnside, John Campbell, Raymond Cho, Josh Colle, Joe Cressy, Janet Davis, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Rob Ford, Mary Fragedakis, Mark Grimes, Stephen Holyday, Jim Karygiannis, Norman Kelly, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Gord Perks, Anthony Perruzza, David Shiner, Michael Thompson, Kristyn Wong-Tam
Total members that voted No: 2 Members that voted No are Gary Crawford, Jaye Robinson
Total members that were Absent: 10 Members that were absent are Christin Carmichael Greb, Shelley Carroll, Vincent Crisanti, Glenn De Baeremaeker, Mike Layton, Chin Lee, Giorgio Mammoliti, Cesar Palacio, James Pasternak, John Tory

Motion to End Debate moved by Councillor Raymond Cho (Lost)

That in accordance with the provisions of Chapter 27, Council Procedures, Council end the debate on Item AU1.7 and take the vote immediately.

Vote (End Debate) Apr-02-2015 3:48 PM

Result: Lost Two-Thirds Required - AU1.7 - Cho - End debate
Total members that voted Yes: 11 Members that voted Yes are Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Jon Burnside, John Campbell, Josh Colle, Mary Fragedakis, Mark Grimes, Mary-Margaret McMahon, Jaye Robinson, Michael Thompson
Total members that voted No: 21 Members that voted No are Paul Ainslie, Raymond Cho, Joe Cressy, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Rob Ford, Stephen Holyday, Norman Kelly, Josh Matlow, Pam McConnell, Joe Mihevc, Ron Moeser, Frances Nunziata (Chair), Gord Perks, Anthony Perruzza, David Shiner, Kristyn Wong-Tam
Total members that were Absent: 13 Members that were absent are Christin Carmichael Greb, Shelley Carroll, Gary Crawford, Vincent Crisanti, Janet Davis, Jim Karygiannis, Mike Layton, Chin Lee, Giorgio Mammoliti, Denzil Minnan-Wong, Cesar Palacio, James Pasternak, John Tory

AU1.7 - Operational Review of Build Toronto Inc.

Decision Type:
ACTION
Status:
Amended
Wards:
All

Committee Recommendations

The Audit Committee recommends that:

 

1.  City Council request the City Manager, in consultation with Build Toronto's Chief Executive Officer, to review the Shareholder Direction on a periodic basis to ensure that the mandate and City objectives remain consistent with City Council's ongoing priorities and expectations for Build Toronto.  Any changes required should be submitted to City Council for approval.

 

2.  City Council request the City Manager, in consultation with Build Toronto's Chief Executive Officer:

 

                         a.  formalize a dividend policy consistent with the mandate and objectives of Build Toronto; and

 

                         b.  establish processes to enable the periodic review of the dividend policy.

 

3.  City Council request the City Manager to ensure that the ongoing review of real estate holdings and the City-Wide Office Modernization Plan consider alternate accommodation solutions to allow for the development of high value sites.  The City Manager report to City Council and the Board of Build Toronto annually on the progress made to identify sites currently in operational or program use that have significant development or value potential.

 

4.  City Council request the City Manager to ensure that a comprehensive City-Wide Real Estate Strategy is prepared which contemplates:

 

            a.  Protocols for cooperation by City divisions, agencies, and corporations which clarifies how they would be compensated for the operating and capital impacts of transferring properties to Build Toronto.

 

            b.  Protocols for real estate development activities carried out by City agencies and corporations and whether such activities should be centralized or coordinated with Build Toronto.

 

c.  The return of a portion of revenue to the originating body which declares a property surplus, in order to encourage an increase in identification of surplus property by the City's agencies and corporations, such as the Toronto Transit Commission.

 

5.  City Council request the City Manager, in consultation with the Chief Corporate Officer and Build Toronto's Chief Executive Officer, to ensure that properties already declared surplus are transferred to Build Toronto on timely basis.

 

6.  City Council request the City Manager, in consultation with the Chief Executive Officer of Build Toronto, to report to Council the estimated open market financial impact of terms and conditions of transfer agreements together with any Section 37 or other obligations on properties transferred to Build Toronto.

 

7.  City Council request the City Manager, in consultation with the Chief Executive Officers of Build Toronto, Invest Toronto, and Toronto Port Lands Company to review areas where opportunities exist to consolidate or coordinate operations and report to City Council on the results of these consultations.

 

8.  City Council request the City Manager to report to the appropriate Committee with a determination of the value to the City generated by Build Toronto, and on whether existing City divisions and/or agencies or an alternate model would be better able to take over any of Build Toronto's functions.

Decision Advice and Other Information

The following City officials made a presentation to the Audit Committee on the Operational Review of Build Toronto Inc.:

 

-           Beverly Romeo-Beehler, Auditor General

 

-           Jerry Shaubel, Director, Auditor General's Office.

Origin

(January 29, 2015) Letter from the President and CEO, Build Toronto, and the Chairman, Build Toronto Inc. Board of Directors

Summary

At its meeting on January 26, 2015, the Build Toronto Inc. Board of Directors considered a report (November 17, 2014) entitled, “Auditor General’s Report – Operational Review of Build Toronto Inc”.

 

The Board adopted the following motion:

 

-           Receive the report of the Auditor General dated October 14, 2014.

 

-           Adopt the 18 recommendations numbered 1 through 4, 10 through 13, 15 through 21, and 23 through 25, most of which were previously identified by Management and the Board, and were already being remedied as the report was being completed, and the Board’s agreement with the Management responses to those recommendations.

 

-           Endorse the seven recommendations to City Council numbered 5 through 9, 14 and 22.

 

-           Direct that the report be forwarded to the City's Audit Committee per Recommendation 26.

 

-           Direct the Financial, Audit and Risk Management Committee receive Management’s detailed Action Plan and Time Frame, and monitor the progress of the completion of the items.

 

-           Thank the Auditor General (and the previous Auditor General) and her staff for their efforts, and the clear and concise report.

 

The Auditor General presented a thorough Report and many of the recommendations directed to Build Toronto had already been recognized by the Board and Management and are currently being addressed.

Background Information

(January 29, 2015) Letter from the President and CEO, Build Toronto, and the Chairman, Build Toronto Inc. Board of Directors, advising of the actions taken by the Board during consideration of the Auditor General's report, headed "Operational Review of Build Toronto Inc."
https://www.toronto.ca/legdocs/mmis/2015/au/bgrd/backgroundfile-76202.pdf
(November 17, 2014) Report from the Auditor General - Operational Review of Build Toronto Inc.
https://www.toronto.ca/legdocs/mmis/2015/au/bgrd/backgroundfile-76203.pdf
Presentation material submitted by the Auditor General
https://www.toronto.ca/legdocs/mmis/2015/au/bgrd/backgroundfile-77625.pdf

Speakers

Deputy Mayor Denzil Minnan-Wong
Councillor David Shiner

Motions

1a - Motion to Amend Item moved by Councillor Josh Matlow (Carried)

That the Audit Committee amend Recommendation 8 contained in the letter (January 29, 2015) from the President and CEO, Build Toronto, and the Chairman, Build Toronto Inc. Board of Directors, to include the following Part c:

 

8. City Council request the City Manager to ensure that a comprehensive City-Wide Real Estate Strategy is prepared which contemplates:

 

c.  The return of a portion of revenue to the originating body which declares a property surplus, in order to encourage an increase in identification of surplus property by the City's agencies and corporations, such as the Toronto Transit Commission.


1b - Motion to Amend Item (Additional) moved by Councillor Josh Matlow (Carried)

That the Audit Committee recommend that City Council:

 

1.  Request the City Manager to report to the appropriate Committee with a determination of the value to the City generated by Build Toronto, and on whether existing City Divisions and/or agencies or an alternate model would be better able to take over any of Build Toronto's functions.


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