Item - 2017.EX25.8

Tracking Status

  • City Council adopted this item on May 24, 2017 without amendments.
  • This item was considered by the Executive Committee on May 16, 2017 and adopted without amendment. It will be considered by City Council on May 24, 2017.

EX25.8 - Toronto Hydro Corporation Equity Investment Funding

Decision Type:
ACTION
Status:
Adopted
Wards:
All

City Council Decision

City Council on May 24, 25 and 26, 2017, adopted the following:

 

1.  City Council direct the Board of Directors, Toronto Hydro Corporation to issue 200 additional common shares of the Corporation, and authorize the City's purchase of all 200 shares for the aggregate subscription price of $250 million, to be held in the City's investment portfolio, and City Council direct that this purchase be made by June 30, 2017.

 

2.  City Council amend section 1.7 of the Investment Policy to permit, as an authorized and suitable investment, the purchase of shares of Toronto Hydro Corporation pursuant to the authority of 142(5) of the Electricity Act, 1998.

 

3.  City Council direct the Deputy City Manager and Chief Financial Officer to include in the 2018 preliminary budget, a plan to use some portion of the Toronto Hydro dividends enabled by the equity contribution to pay an annual return and reimburse the investment portfolio.

 

4.  City Council adopt the confidential instructions in Confidential Attachment 1 to the report (May 2, 2017) from the Deputy City Manager and Chief Financial Officer.

 

5.  City Council direct that Confidential Attachment 1 to the report (May 2, 2017) from the Deputy City Manager and Chief Financial Officer remain confidential until such time as the City Clerk receives written confirmation by Toronto Hydro Corporation that it has met its requirements under the Ontario Securities Act pertaining to the disclosure of material change to the Corporation.

 

Confidential Attachment 1 to the report (May 2, 2017) from the Deputy City Manager and Chief Financial Officer remains confidential in its entirety at this time in accordance with the provisions of the City of Toronto Act, 2006, as it relates to the security of the property of the municipality or local board. Confidential Attachment 1 to the report (May 2, 2017) from the Deputy City Manager and Chief Financial Officer will be made public once the City Clerk receives written confirmation by Toronto Hydro Corporation that it has met its requirements under the Ontario Securities Act pertaining to the disclosure of material change to the Corporation.

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

Background Information (Committee)

(May 2, 2017) Report from the Deputy City Manager and Chief Financial Officer on Toronto Hydro Corporation Equity Investment Funding
https://www.toronto.ca/legdocs/mmis/2017/ex/bgrd/backgroundfile-103517.pdf
Confidential Attachment 1

Motions (City Council)

Motion to Adopt Item (Carried)

Adoption of Executive Committee Recommendation 4.

Vote (Adopt Item) May-24-2017 2:06 PM

Result: Carried Majority Required - EX25.8 - Adoption of Executive Committee Recommendation 4
Total members that voted Yes: 30 Members that voted Yes are Jon Burnside, John Campbell, Shelley Carroll, Joe Cressy, Janet Davis, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Michael Ford, Mary Fragedakis, Mark Grimes, Jim Karygiannis, Mike Layton, Chin Lee, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Jaye Robinson, Neethan Shan, John Tory
Total members that voted No: 3 Members that voted No are Stephen Holyday, Anthony Perruzza, David Shiner
Total members that were Absent: 11 Members that were absent are Paul Ainslie, Maria Augimeri, Ana Bail„o, Christin Carmichael Greb, Josh Colle, Gary Crawford, Vincent Crisanti, Michelle Holland, Norman Kelly, Michael Thompson, Kristyn Wong-Tam

Motion to Adopt Item (Carried)

Adoption of the balance of the Item.

EX25.8 - Toronto Hydro Corporation Equity Investment Funding

Decision Type:
ACTION
Status:
Adopted
Wards:
All

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

Committee Recommendations

The Executive Committee recommends that:

 

1.  City Council direct the Board of Directors of Toronto Hydro Corporation to issue 200 additional common shares of the Corporation, and authorize the City's purchase of all 200 shares for the aggregate subscription price of $250 million, to be held in the City's investment portfolio, and that this purchase be made by June 30, 2017.

 

2.  City Council amend section 1.7 of the Investment Policy to permit, as an authorized and suitable investment, the purchase of shares of Toronto Hydro Corporation pursuant to the authority of 142(5) of the Electricity Act, 1998.

 

3.  City Council direct the Deputy City Manager and Chief Financial Officer to include in the 2018 preliminary budget, a plan to use some portion of the Toronto Hydro dividends enabled by the equity contribution to pay an annual return and reimburse the investment portfolio.

 

4.  City Council adopt the confidential instructions in Confidential Attachment 1 to the report (May 2, 2017) from the Deputy City Manager and Chief Financial Officer.

 

5.  City Council direct that Confidential Attachment 1 to the report (May 2, 2017) from the Deputy City Manager and Chief Financial Officer remain confidential until such time as the Clerk receives written confirmation by Toronto Hydro Corporation that it has met its requirements under the Ontario Securities Act pertaining to the disclosure of material change to the Corporation.

Origin

(May 2, 2017) Report from the Deputy City Manager and Chief Financial Officer

Summary

The purpose of this report is to outline the implementation details for the City's $250 million equity investment in Toronto Hydro Corporation (THC), and to restore and enhance Toronto Hydro Corporation's dividends payable to the City.

Background Information

(May 2, 2017) Report from the Deputy City Manager and Chief Financial Officer on Toronto Hydro Corporation Equity Investment Funding
https://www.toronto.ca/legdocs/mmis/2017/ex/bgrd/backgroundfile-103517.pdf
Confidential Attachment 1

Speakers

Pauline Niles
Councillor Shelley Carroll

Motions

1 - Motion to Adopt Item moved by Councillor Paul Ainslie (Carried)
Source: Toronto City Clerk at www.toronto.ca/council