Item - 2017.AU9.12

July 5, 2017 at 12:27 p.m. - Speaker Nunziata advised that City Council had not completed its closed session consideration of Item AU9.12 headed "Auditor General's Observations of a Land Acquisition at Finch Avenue West and Arrow Road by the Toronto Parking Authority – Part 2".  Speaker Nunziata advised that she would ask for a motion to meet in a further closed session later in the meeting.

July 5, 2017 at 3:44 p.m. - Speaker Nunziata advised that City Council had not completed its closed session consideration of Item AU9.12 headed "Auditor General's Observations of a Land Acquisition at Finch Avenue West and Arrow Road by the Toronto Parking Authority – Part 2".  Speaker Nunziata advised that she would ask for a motion to meet in a further closed session later in the meeting.

July 6, 2017 at 12:27 p.m. - Speaker Nunziata advised that City Council had completed its closed session consideration of Item AU9.12 headed "Auditor General's Observations of a Land Acquisition at Finch Avenue West and Arrow Road by the Toronto Parking Authority – Part 2".  No motions were made during closed session. City Council would conduct the public debate on Item AU9.12 after the lunch recess.

That City Council adopt the following recommendations contained in the supplementary report (July 4, 2017), from the City Manager and City Solicitor [AU9.12c]:

1. City Council adopt the confidential instructions to staff in Confidential Attachment 1.

2. City Council direct that the confidential information contained in Confidential Attachment 1 remain confidential in its entirety, as it contains advice which is subject to solicitor-client privilege.

That:

1.  City Council direct the City Clerk to provide meeting management support to the Board of Directors for the Toronto Parking Authority 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 at toronto.ca/council;
 

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; and
 

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.
 

2.  City Council direct that Board of Directors of the Toronto Parking Authority adopt City Hall as its usual meeting place.
 

3.  City Council direct the Board of Directors of the Toronto Parking Authority 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.
 

4.  City Council direct the Board of Directors of the Toronto Parking Authority to follow the procedures of Municipal Code Chapter 27, Council Procedures, as it applies to committees of Council, with any necessary modifications until such time that new procedures for Board can be drafted and approved by City Council.

That:

1. City Council acknowledge that while there has been no evidence of wrong-doing on the part of the board of the Toronto Parking Authority, or any of its individual members, it is in the City's and Board's interest for there to be an interim governance arrangement while the Auditor General's findings are reviewed in more detail.

2. City Council place the members of the Toronto Parking Authority Board on a leave of absence effective immediately while the City Manager conducts an investigation into the findings of the Auditor General. 

3. City Council amend the composition of the Toronto Parking Authority board on an interim basis, to be composed of the following City officials appointed by virtue of office, each of whom shall serve without additional compensation:

a. The City Manager, as chair

b. The Chief Corporate Officer

c. The Deputy City Manager, Cluster A. 

4. City Council request the City Manager to report to Executive Committee on the governance and composition of the board following the completion of his investigation and no later than December 31, 2017.

Amended by motion 5 by Councillor Fragedakis

That City Council request the City Manager to report to the Executive Committee on a program to review major City agencies, boards, corporations and commissions on a rolling basis so that agencies are reviewed once per term of office, such reviews to focus on the governance of each body including consistency with City of Toronto objectives and directions including financial management, accountability and overall performance.

That:

1. City Council request the Integrity Commissioner to review the circumstances of this matter and any other relevant information, and, if necessary, make recommendations about possible Code of Conduct or policy amendments pertaining to the Toronto Parking Authority Board or any local Board (restricted definition) regarding whistle blower or dissenting viewpoint protections for Board members.

2. City Council forward copies of the reports from the Auditor General and external counsel for the Toronto Parking Authority to the Integrity Commissioner with a request that she conduct an investigation into whether members of the board contravened the code of conduct in dealing with this matter.

Amended by motion 4b by Councillor Davis

That:

1.  City Council amend Recommendation 2 of motion 1c by Mayor Tory by adding the words "public" so that it now reads as follows:

2. City Council place the public members of the Toronto Parking Authority Board on a leave of absence effective immediately while the City Manager conducts an investigation into the findings of the Auditor General. 

2.  City Council amend Recommendation 3 of motion 1c by Mayor Tory by adding the words "plus the two Members of Council currently appointed" so that it now reads as follows:

3. City Council amend the composition of the Toronto Parking Authority board on an interim basis, to be composed of the following City officials appointed by virtue of office, each of whom shall serve without additional compensation:

a. The City Manager, as chair

b. The Chief Corporate Officer

c. The Deputy City Manager, Cluster A,

plus the two Members of Council currently appointed.

That Councillor Josh Matlow be permitted to withdraw his motion 3.

That:

1. City Council request the Lobbyist Registrar to undertake an investigation of the conduct of the lobbyists and consultants involved in this matter.

That City Council amend recommendation 2 of motion 2 by Councillor Holyday by adding the words "current and past" and "Toronto Parking Authority and the Emery Village Business Improvement Area" so that it now reads as follows:

2. City Council forward copies of the reports from the Auditor General and external counsel for the Toronto Parking Authority to the Integrity Commissioner with a request that she conduct an investigation into whether current and past members of the boards of the Toronto Parking Authority and the Emery Village Business Improvement Area contravened the Code of Conduct in dealing with this matter.

That City Council amend Recommendation 2 of motion 1c by Mayor Tory by adding the words "without remuneration" after the word "absence" so that it now reads as follows:

2. City Council place the members of the Toronto Parking Authority Board on a leave of absence without remuneration effective immediately while the City Manager conducts an investigation into the findings of the Auditor General. 

That City Council request the City Manager to review whether the existing whistle-blowing and reprisal protection provisions that apply to directors of City agencies are adequate and, if necessary, report on ways and means of enhancing them.

City Council request the City Manager to retain the services of a qualified expert in board governance to review and evaluate the actions of the Toronto Parking Authority Board in this matter and report to City Council at the appropriate time.

That City Council direct that the confidential submission from the City Manager [AU9.12e] be made public.

Councillor Mammoliti, rising on Point of Privilege, stated that he just finished a question to staff, and although his five minutes is up, it is vital that Council receive an answer as to who asked the Toronto Parking Authority to buy the land.

Councillor Fragedakis, rising on a Point of Order, asked when Council would be returning to a closed session on Item AU9.12.

Councillor Thompson, rising on a Point of Privilege, stated that Members of Council have a great deal of contradictory information in front of them and he would like the President and Chief Executive Officer of the Toronto Parking Authority and the author of the confidential document submitted by the City Manager to be present so that Members may ask questions.

Councillor Mammoliti, rising on a Point of Privilege, stated that it is important to ask questions of the author of the confidential document submitted by the City Manager.  Councillor Mammoliti further stated that the confidential submission from the City Manager should be public and would like to move a motion to make it public.

Councillor Holyday, rising on a Point of Order, stated that he would like a risk assessment done by the City Solicitor before City Council decides whether to make the confidential submission public.

Councillor Perks, rising on a Point of Order, stated that in the closed sessions on July 5, 2017 Members of Council received advice and that some of the Members present today may not have been in closed session to receive that advice.  Councillor Perks further stated that Council needs some advice from the City Clerk or the Speaker on what to do in this instance.

Councillor Thompson, rising on a Point of Order, stated that in light of the advice given yesterday and based on advice from the City Solicitor he wished to withdraw his motion to have the President and Chief Executive Officer of the Toronto Parking Authority and the author of the confidential submission present to answer questions.

Councillor Mammoliti, rising on a Point of Order, stated that his motion to make the confidential submission from the City Manager public is still before Council and asked that it be voted on.

Councillor Filion, rising on a Point of Order, stated that he would like all confidential documents on this matter to be made public and for it to be voted on by Council.

Councillor Mammoliti, rising on a Point of Privilege, stated that he had be asked by his lawyer to speak about the comments made by Councillor Matlow at the Audit Committee meeting and in the media regarding Councillor Mammoliti.  Councillor Mammoliti further stated that he would like Councillor Matlow to apologize for his slurs, innuendos and slanderous comments.

Councillor Matlow, rising on a Point of Privilege, stated that he would like to know what comment Councillor Mammoliti took offence to and if said something wrong, he would be happy to apologize.

Councillor Mammoliti, rising on a Point of Privilege, stated that after Councillor Matlow reviewed the tapes in regards to his comments about Councillor Mammoliti relating to Arrow Road made at the Audit Committee and to the media, if Councillor Matlow wishes to apologize he would like it done in public.

Councillor Matlow, rising on a Point of Privilege, stated that Councillor Mammoliti is making vague suggestions about various comments but have not heard a specific complaint about a specific comment.  Councillor Matlow further stated that if Councillor Mammoliti would like to send him something that he could read, he would be happy to review.

Councillor Mammoliti, rising on a Point of Privilege, stated that Councillor Matlow made specific comments about Councillor Mammoliti in the Audit Committee meeting specific to Arrow Road and is asking for Councillor Matlow to apologize.

Councillor Mammoliti, rising on a Point of Order, stated that he had questions of staff.

Councillor Mammoliti, rising on a Point of Order, stated that he would like to vary the procedures in order to allow a third party on the floor of Council so that he may ask questions.

Councillor Perks, rising on a Point of Privilege, stated that Councillor Mammoliti in his questioning of the Mayor remarked that a certain board member can do what they want to do.

Councillor Karygiannis, rising on a Point of Privilege, stated that Councillor Nunziata should withdraw her remarks about the lawyer who authored the confidential submission from the City Manager.

Councillor Fragedakis, rising on a Point of Order, stated that based on remarks made by Councillor Pasternak, she wanted to clarify that her motion is about remuneration of Board Members and not about staff.

Councillor Filion, rising on a Point of Privilege, stated that Councillor Mammoliti's remarks about Councillor Filion threatening staff of the Toronto Parking Authority are completely untrue and are not in the report.  Councillor Filion further stated that he would like Councillor Mammoliti to withdraw his remarks.

That the Audit Committee recommend that:

1.  City Council direct that all real property transactions involving the Toronto Parking Authority be directed through the Real Estate Services Division's delegated authority approval process and due diligence procedures.  

That the Audit Committee request the City Manager to report further on this matter, either directly to City Council for its July 4, 2017 meeting, or subsequently through the Audit Committee or Executive Committee as appropriate, in the event there are addition comments or recommendations he deems appropriate arising from the Auditor General's report, including a review of the board structure and management of employees at the Toronto Parking Authority.