Minutes Confirmed on July 17, 2018

The Executive Committee recommends that:

1.  City Council amend the Standing Committee Mandates contained in City of Toronto Municipal Code Chapter 27, Council Procedures by:

a.  establishing a Housing Committee as a standing committee with the following mandate:

"The Housing Committee's primary focus is the housing and accommodation of Torontonians, with a mandate to monitor and make recommendation on housing and shelter in the City.";

b.  deleting the Affordable Housing Committee as a special committee of Council;

c.  increase the membership of the Executive Committee to accommodate the Chair of the Housing Committee.

I am writing to recommend that City Council make adjustments to the mandates and composition of the standing committees for the next term of Council starting December 1, 2018.

The business of the City is currently divided across seven policy standing committees and the Executive Committee.  These committees meet on a monthly basis.

Under our Council Procedures, each Member of Council is required to serve on one of these seven committees or as one of the four at-large members of the Executive Committee.

This report recommends changing the number of standing committees to eight which will require some members in the next term of council to sit on two standing committees, and will see the Executive Committee's composition increased by one.

Housing and accommodation is a key priority to the success of our City as a whole in a time where the ability for Toronto residents to affordably live and work in our city is increasingly threatened. This committee will serve to coordinate housing and shelter services under one committee and will reflect the priorities of this Council in its governance structure.

If adopted, my recommendations would accomplish the following:

- Converting the Affordable Housing Committee from a special committee to a standing committee responsible for all housing, shelter and accommodation matters including those currently considered by the Community Development and Recreation Committee and the Tenant Issues Advisory Committee.

 
- Amending the mandate of the Community Development and Recreation Committee as follows:

- Transfer of shelter, accommodation and housing matters to the proposed Housing Committee.
 

The revised committee mandates as contained in the Council Procedures are attached as appendix 1.

Rationale:

1.  Converting the Affordable Housing Committee from a special committee to a standing committee.

Housing is a priority for the City of Toronto. The importance of this issue cannot be understated as affordability is threatened for residents of Toronto. Therefore a standing Housing committee will give this issue the attention and cross-divisional planning it requires.

The Executive Committee recommends that:

1.  City Council amend City of Toronto Municipal Code Chapter 27, Council Procedures by adopting, effective December 1, 2018, the Community Council boundaries and names as follows:

a.  Etobicoke York Community Council  - Wards 1, 2, 3, 4, 5, 6, 7, 11, 12, 16, 17;

b.  North York Community Council - Wards 8, 9, 10, 13, 14, 27, 28, 29, 30, 31, 32, 33;

c.  Scarborough Community Council - Wards 38, 39, 40, 41, 42, 43, 44, 45, 46, 47;

d.  Toronto and East York Community Council - Wards 15, 18, 19, 20, 21, 22, 23, 24, 25, 26, 34, 35, 36, 37.

2.  City Council direct that unless and until Council decides otherwise, a reference to a ward in a by-law enacted before December 1, 2018 is a reference to the geographical boundaries of the ward as it existed immediately before December 1, 2018 and as described in Ontario Regulation 191/00.

This report presents the findings of the City's recent consultation on Community Council boundaries. Based on input from Members of Council and the public, and information from prior reviews and Council decisions on ward and Community Council boundaries, the Interim City Manager recommends City Council adopt minimal changes to the current Community Council boundaries.

The Interim City Manager recommends maintaining four Community Councils with minor adjustments to align to the City's new 47 ward boundaries. This model will result in minimal or no change to the geographic areas assigned to each Community Council, the administration of Community Councils, the names of the Community Councils and costs. The recommended model assigns each City ward to a specific Community Council. Amendments to the recommended model which assign a ward or wards to a different Community Council, or increase the number of Community Councils, may have financial or administrative implications.

This report also responds to Council direction to bring forward a process for naming the City's wards. The Interim City Manager will establish an advisory panel to assist the City in bringing forward new ward names for Council's consideration in the next term of Council.

The report also recommends that current City by-laws passed prior to December 1, 2018, which reference one or more of the previous 44 wards, will continue as is until the City brings forward any required amendments.

The Executive Committee recommends that:

1.  City Council approve the use of patron baggage security screening, through physical checks of baggage, on the East and West sides of the main floor in the Rotunda, and at the Hagerman entrance of Toronto City Hall.

2.  City Council approve the use of patron screening, using walk-through metal detectors, for the Council Chamber at Toronto City Hall.

3.  City Council approve the installation of a physical measure to provide a delineation of public and reserved space at Toronto City Hall in Committee Rooms 1 and 2.

4.  City Council approve the installation of a physical security measure to replace the ropes in the Council Chamber.

5.  City Council direct that Confidential Attachment 1 to the report (June 12, 2018) from the Deputy City Manager, Internal Corporate Services remains confidential in its entirety, as it contains information that pertains to the the security of the property of the municipality or local board.

6.  City Council direct the Deputy City Manager, Internal Corporate Services, to report back to City Council, through the applicable Standing Committee, on any recommended changes or enhancements to Recommendations 1 and 2 above prior to the end of 2019.

This report recommends changes to the current "Enhanced" level of security at Toronto City Hall for approval by City Council. These recommendations are based upon assessments from the Toronto Police Service and Public Safety Canada, best practices, benchmarking, and feedback from community conversations. The primary goals of these recommendations are to maintain an accessible, safe, and secure Toronto City Hall while providing a reasonable level of protection from foreseeable threats.

The Executive Committee recommends that:

1.  City Council adopt the City of Toronto Corporate Accessibility Policy as contained in Appendix A to the report (June 5, 2018) from the Interim City Manager.

2.  City Council request the Deputy City Manager, Internal Corporate Services to report to the Executive Committee in the second quarter of 2019 on the following:

a.  options to further enhance accessibility through an accessibility certification program; and

b.  the feasibility of conducting a pilot of an accessibility certification program on a City facility.

This report recommends City Council adopt the City of Toronto Corporate Accessibility Policy, as recommended by the Toronto Accessibility Advisory Committee.

The City of Toronto is required by the Accessibility for Ontarians with Disabilities Act, 2005 (AODA) to have accessibility policies governing how the organization achieves accessibility and meets legislated requirements. The City of Toronto Corporate Accessibility Policy unifies policies that address Accessibility for Ontarians with Disabilities Act requirements and City accessibility commitments into one umbrella policy. It will simplify and improve awareness and understanding of requirements and help embed accessibility into all City operations. The Corporate Accessibility Policy provides a strong framework for the City's Multi-Year Accessibility Plan and related Accessibility Guidelines.

At its meeting on April 19, 2018, the Toronto Accessibility Advisory Committee considered a report (April 5, 2018) from the Director, Equity, Diversity and Human Rights on City of Toronto Corporate Accessibility Policy.

The Executive Committee received the report (June 5, 2018) from the Interim City Manager for information.

The City of Toronto's strong commitment to diversity, equity and inclusion is reflected in its Motto: Diversity Our Strength.

Greater equity, diversity and inclusion better enables organizations to leverage the range of perspectives needed to address today's complex challenges.

The City recognizes that building an inclusive workforce that reflects the population it serves at all levels within the organization will promote public confidence and ensure that its decision making processes include a range of perspectives.  Accordingly, diversity is one of four strategic focus areas in the City's Talent Blueprint. 

In the City's workforce plan and in the Equity, Diversity and Human Right's Division Strategic Plan, the City has committed to building "a public service that reflects the population we serve, values and champions diversity, access, inclusion and respectful behaviour".  The City has also integrated equity into the Excellence Toronto framework. 

The data from the City's Count Yourself In - Workforce Survey indicates that some progress has been made.  However, the City recognizes that more work is required to achieve its goals.

This report outlines some of the actions that the City will be taking within the next year to promote progress toward its goal.  One primary action is developing a multi-year plan for accelerating progress toward the City's goal of building a more reflective workforce.  Work on the development of a plan that includes realistic, achievable and relevant goals and timelines is underway.  Developing such a plan requires a comprehensive approach to culture change and thorough engagement of divisional stakeholders.  Staff will also be consulting with other large organizations in the private and public sector to learn from their experiences.  Staff expect to provide the multi-year plan to Executive Committee by the end of the second quarter of 2019.

The Executive Committee:

1.  Requested the Toronto Police Services Board to determine whether a Toronto Police Service General Occurrence (GO) has been generated in response to the incidents at the Al-Quds Day rally on Saturday June 9, 2018 and confirm that the Hate Crime Unit is conducting an investigation.

2.  Requested the Ministry of the Attorney General to conduct an expedited review of the Hate Crime Unit investigation of the Al-Quds Day rally on Saturday June 9, 2018, once and if it is submitted. 

3.  Requested the City Manager to report back to the Executive Committee in the first quarter in 2019, on the status of the request to the Toronto Police Services Board referred to in Recommendation 1 above, as well as the consultation and survey results identified in the staff report.

4.  Requested the City Manager report back to the Executive Committee on the means at the City's disposal to address protests featuring hate speech, including possible recovery of costs.

The report provides an overview of the City of Toronto's progress in responding to Item EX29.42 - Hate Sponsored Rallies such as Al-Quds Day, which was referred to the City Manager by the Executive Committee on November 28, 2017 for follow up and consultation. The report outlines the strategy the City has developed for meaningful consultation with the broad range of stakeholders and outlines the timeline.

The Executive Committee referred the matter to staff with the following requests:

1. The City Manager, the Chief Planner and Executive Director, City Planning, and the Acting Director, Court Services, to request the Chair, Toronto Local Appeal Body to examine possible revisions to the Committee of Adjustment's appeal process and for this review to consider improved opportunities to resolve disputes prior to Committee of Adjustment's hearings that are fair and reasonable to neighbours directly affected by the variances and report to the Executive Committee by the first quarter of 2019, including an analysis of the comments provided by the Federation of North Toronto Residents' Associations (FoNTRA), and until this review is conducted, not continue with the Mediation Pilot Program.

2. The Chief Planner and Executive Director, City Planning to review the Committee of Adjustment and related processes in order to better serve the public and enhance dialogue between applicants and the public and report back to the Executive Committee in January of 2019, and the review to include an examination of opportunities to further improve communication and strategies for enhancing informal engagement of residents.

3. The Chief Planner and Executive Director, City Planning to report to the Executive Committee in January 2019, on recommended improvements to the Committee of Adjustment and related processes to address planning issues related to residential applications.

This report provides a summary and evaluation of the Committee of Adjustment (CoA) mediation pilot program (MPP), which ran for one year from February 2017 to the end of January 2018. 

The primary objective of the mediation pilot program was to determine whether mediation, as part of the Committee of Adjustment process, would reduce the number of appeals of minor variances and consent applications to the Toronto Local Appeal Body (TLAB). Staff also reviewed whether mediation reduced time and costs to the City and to other involved parties. The program was developed and administered by staff from Court Services, City Planning, Strategic and Corporate Policy, City Manager's Office and Legal Services.

The program ran in the Toronto and East York, Etobicoke York, North York and Scarborough Districts at a cost of $127,489. Mediation sessions were voluntary and at no cost to participants, and were conducted by third party professional mediators and planners.

Seventy-eight mediations took place as part of the mediation pilot program. Initially, mediations were scheduled to a future date, resulting in applications taking longer to be heard by a Committee of Adjustment panel. The low number of initial participants (8) was attributed in part to this additional time commitment.  Adjustments were made to provide for same day mediation sessions, which generated greater interest in the program.

Approximately 10 percent of the mediated applications were appealed to the Toronto Local Appeal Body. This appeal rate is generally consistent with the average appeal rate of Committee of Adjustment applications. Given the relatively low number of mediations conducted under this program, there is insufficient data to conclude whether or not a permanent mediation program would ultimately result in fewer appeals.

Although the response to the program was relatively low, surveys of both the vendors and participants in the program demonstrated some positive feedback on the benefits of mediation for improving communication between parties and educating parties on land use planning and decision making processes at the City.

Given the low response rate and the costs associated with the program, staff are not recommending that the mediation pilot program continue. However, vendors and the parties that responded to a survey encouraged creating opportunities for dialogue between parties early in the process, and investing in enhanced education and communication on the City's land use planning decision-making process which may result in greater benefit than a formal mediation program.

There have been ongoing improvements made to Committee of Adjustment including additional staffing resources to help process a growing number of applications; implementation of testing of livestreaming panel hearings in the Toronto and East York District, and e-service improvements and active applications access through the Committee of Adjustment website. Further investing in these improvements would better build upon the positive results of the mediation pilot program, rather than implementing a permanent mediation program as part of the Committee of Adjustment process.

The Executive Committee recommends that:

1.  City Council authorize receipt of Municipal Greenhouse Gas Challenge funds totalling $51.805 million for 10 major greenhouse gas emission reduction projects.

2.  City Council approve the establishment of an obligatory reserve fund account named 'TransformTO Initiatives Reserve Account' in Schedule 15 of City of Toronto Municipal Code Chapter 227, Reserves and Reserve Funds (Chapter 227), the purpose of which is to administer funding and investment, such as the Municipal Greenhouse Gas Challenge funds, to be used for the greenhouse gas emission reduction initiatives to be undertaken by City Divisions, Agencies and Corporations pursuant to the TransformTO Climate Action Strategy.

3.  City Council amend 2018 - 2027 Council Approved Capital Budget and Plan for Facilities, Real Estate, Environment and Energy for the following Municipal Greenhouse Gas Challenge‑funded projects:

a.  funding sources for St. Lawrence Market North Building project with total project cost of $89.142 million be adjusted by reducing Recoverable Debt by $0.713 million in 2018 and $0.079 million in 2021 offset by an increase of $0.713 in 2018 and $0.079 million in 2021 to be fully funded from the TransformTO Initiatives Reserve Account;

b.  funding sources for the EMS Headquarters project with total project cost of $41.394 million be adjusted by reducing Recoverable Debt by $0.142 million in 2018, $0.643 million in 2019 and $0.087 million in 2021 offset by an increase of $0.142 million in 2018, $0.643 million in 2019 and $0.087 million in 2021 to be fully funded from the TransformTO Initiatives Reserve Account.

4.  City Council amend the 2018 - 2027 Council Approved Capital Budget and Plan for Children's Services to reflect an increase in the Mt. Dennis Net Zero Early Learning and Child Care total project cost by $0.500 million from $9.005 million to $9.505 million, with incremental cash flow funding of $0.500 million in 2019 and to be fully funded from the TransformTO Initiatives Reserve Account.

5.  City Council increase the 2018 - 2027 Council Approved Capital Budget and Plan for Fleet Services to include the creation of the following new Municipal Greenhouse Gas funded projects:

a.  Green Fleet Acceleration Project for the retrofit of Paramedics services vehicles with total project cost of $0.733 million, cash flow funding of $0.501 million in 2018 and $0.231 million in 2019, and to be fully funded from the TransformTO Initiatives Reserve Account;

b.  Green Fleet Acceleration Project for the retrofit of Fire Services vehicles with total project cost of $1.804 million and cash flow funding of $0.004 million in 2018, $0.900 million in 2019, and $0.900 million in 2020 to be funded $1.267 million from TransformTO Initiatives Reserve Account and $0.537 million from the Vehicle Reserve Fund - Fire (XQ1017);

c.  Green Fleet Acceleration Project for the electric vehicles/electric charging station with total project cost of $3.841 million, cash flow funding of $0.166 million in 2019, $0.557 million in 2020, $0.545 million in 2021, $0.545 million in 2022, $0.570 million in 2023, $0.729 million in 2024, and $0.729 million in 2025, and to be fully funded from the TransformTO Initiatives Reserve Account.

The purpose of this report is to provide the outcome of applications made by City Divisions to Ontario's Municipal Greenhouse Gas (GHG) Challenge Fund, authorize the necessary amendments to the 2018-2027 Capital Budget and Plan for impacted City Divisions and Agencies to account for this funding, and establish the necessary capital project authorities.

Ontario's Ministry of Environment and Climate Change (MOECC) has awarded the City with $52 million for 10 major greenhouse gas (GHG) emission reduction projects. These innovative, next-generation projects will expand high-performance buildings, build low‑carbon thermal energy networks, deploy electric vehicles and utilize biogas as energy from waste. Undertaking these projects will advance the Council-approved Greenhouse Gas emissions reduction targets established by TransformTO, Toronto's climate action strategy.

This report also seeks authorization to establish a reserve fund account to act as a repository for Municipal Greenhouse Gas Challenge Fund proceeds as well as future funding and investment anticipated to be secured by the City in association with its climate change mitigation and adaptation initiatives.

The Executive Committee recommends that:

1.  City Council treat that portion of the City Council meeting at which the report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer is considered as the Annual General Meeting of the Shareholder for Build Toronto by:

a.  receiving the "Build Toronto 2017 Annual Report", forming Attachment 1 to the report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer;

b.  appointing PricewaterhouseCoopers LLP, Chartered Accountants, as the Auditor of Build Toronto for fiscal year 2018, and authorizing the Board of Directors of Build Toronto to fix the remuneration of the Auditor; and

c.  receiving the "Build Toronto Executive Compensation Disclosure 2017", forming Attachment 2 to the report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer.

2.  City Council direct the City Clerk to forward a copy of the "Build Toronto 2017 Audited Annual Financial Statements", forming Attachment 3 to the report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer, to the Audit Committee for information.

This report contains recommendations for the actions necessary to comply with the requirements of the Business Corporations Act, Ontario (OBCA) for holding the Annual General Meeting of the Shareholder of Build Toronto, including receipt of its Annual Report and Audited Financial Statements for 2017 and appointment of the auditor for 2018.

This report also contains recommendations for receipt at the Annual General Meeting of the Shareholder of information disclosing the individual compensation of executive officers employed by Build Toronto in 2017.

The Executive Committee recommends that:

1.  City Council treat that portion of the City Council meeting at which the report (June 4, 2018) from the Interim City Manager and the Interim Chief Financial Officer is considered as the Annual General Meeting of the Shareholder for Casa Loma Corporation by:

a.  appointing Welch LLP Chartered Accountants, as the Auditor of Casa Loma Corporation for the fiscal year 2018, and authorizing the Board of Directors of Casa Loma Corporation to fix the remuneration of the Auditor;

b.  receiving the Casa Loma Corporation 2017 Annual Report forming Attachment 1 to the report (June 4, 2018) from the Interim City Manager and the Interim Chief Financial Officer; and

c.  receiving the 2017 Audited Financial Statements for Casa Loma Corporation, forming Attachment 2 to the report (June 4, 2018) from the Interim City Manager and the Interim Chief Financial Officer.

2.  City Council direct the City Clerk to forward a copy of the Casa Loma Corporation 2017 Audited Financial Statements, forming Attachment 2 to the report (June 4, 2018) from the Interim City Manager and the Interim Chief Financial Officer, to the Audit Committee for information.

This report contains recommendations for the actions necessary to comply with the requirements of the Business Corporations Act (Ontario) for holding the Annual General Meeting of the Shareholder of Casa Loma Corporation including receipt of its Annual Report and Audited Financial Statements for 2017 and appointment of the auditor for 2018.

The Executive Committee recommends that:  

1.  City Council treat the portion of the City Council meeting at which the report (June 6, 2018) from the Interim City Manager and the Interim Chief Financial Officer is considered as the Annual General Meeting of the Shareholder for Invest Toronto Incorporated by:

a.  receiving the Invest Toronto 2017 Annual Report forming Attachment 1 to the report (June 6, 2018) from the Interim City Manager and the Interim Chief Financial Officer, and the Invest Toronto Inc. Audited Financial Statements December 31, 2017, forming Attachment 2 to the report (June 6, 2018) from the Interim City Manager and the Interim Chief Financial Officer;

b.  receiving the Invest Toronto 2017 Executive Compensation Disclosure, forming Attachment 3 to the report (June 6, 2018) from the Interim City Manager and the Interim Chief Financial Officer; and

c.  consenting to the exemption from the requirements of the Ontario Business Corporations Act regarding the appointment and duties of an auditor in respect of the ensuing year.

2.  City Council direct the City Clerk to forward a copy of Invest Toronto Inc. Audited Financial Statements December 31, 2017 forming Attachment 2 to the report (June 6, 2018) from the Interim City Manager and the Interim Chief Financial Officer, to the Audit Committee for information.

3.  City Council request the Interim City Manager and the City Solicitor to ensure all intellectual property of Invest Toronto Inc., including their logo, slogan and domain name, become City of Toronto property, and take all appropriate measures to protect the Invest Toronto name from use by other parties.

This report contains recommendations for the actions necessary to comply with the requirements of the Ontario Business Corporations Act (OBCA) for holding the Annual General Meeting of the Shareholder of Invest Toronto Inc. (Invest Toronto) including receipt of its 2017 Annual Report and Audited Financial Statements. This report also recommends that the Shareholder exempt Invest Toronto from the requirements regarding the appointment and duties of an auditor in respect of the ensuing year.

As Invest Toronto is currently being wound up, consideration of this report is the final annual general meeting for Invest Toronto. Wind-up activities are near completion, and the City Manager as liquidator is preparing a technical report on the wind-up for the Shareholder, as required under the Ontario Business Corporations Act, for Executive Committee's consideration at the next possible opportunity.

The Executive Committee recommends that:

1.  City Council treat the portion of the City Council meeting at which the report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer is considered as the Annual General Meeting of the Shareholder for Lakeshore Arena Corporation by:

a.  appointing Welch LLP Chartered Accountants as the Auditor for Lakeshore Arena Corporation for the fiscal year 2018, and authorizing the Board of Directors of Lakeshore Arena Corporation to fix the remuneration of the Auditor;

b.  receiving the Lakeshore Arena Corporation 2017 Annual Report forming Attachment 1 to the report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer;

c.  receiving the Lakeshore Arena Corporation 2017 Audited Financial Statements, forming Attachment 2 to the report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer; and

d.  receiving the Lakeshore Arena Corporation - 2017 Executive Compensation Disclosure, forming Attachment 3 to the report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer.

2.  City Council direct the City Clerk to forward a copy of the Lakeshore Arena Corporation 2017 Audited Financial Statements, forming Attachment 2 to the report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer, to the Audit Committee for information.

This report recommends the actions necessary to comply with the requirements of the Business Corporations Act (Ontario) for the holding of the Annual General Meeting of the Shareholder of the Lakeshore Arena Corporation, including receipt of its Annual Report and Audited Financial Statements for 2017, and appointment of the Auditor for 2018.

This report also contains recommendations for receipt at the Annual General Meeting of the Shareholder of information disclosing the individual compensation of executive officers employed by Lakeshore Arena Corporation in 2017.

The Executive Committee recommends that:

1.  City Council treat the portion of the City Council meeting at which the report (June 4, 2018) from the Interim City Manager and the Interim Chief Financial Officer is considered as the Annual General Meeting of the Shareholder for Toronto Community Housing Corporation by:

a.  receiving the Letter to the Shareholder from the Toronto Community Housing Corporation's Chair of the Board of Directors and President and Chief Executive Officer dated April 30, 2018 transmitting the Toronto Community Housing Corporation 2017 Annual Report and additional information, forming Attachment 1 and Confidential Attachment 5 to the report (June 4, 2018) from the Interim City Manager and the Interim Chief Financial Officer;

b.  receiving Toronto Community Housing Corporation's 2017 Audited Consolidated Financial Statements for the period ending December 31, 2017, including the auditor's report dated May 4, 2018, forming Attachment 2 to the report (June 4, 2018) from the Interim City Manager and the Interim Chief Financial Officer; and

c.  appointing PricewaterhouseCoopers LLP, Chartered Accountants, as the auditor for Toronto Community Housing Corporation for fiscal year 2018 at the fee provided in the City's agreement with that firm.

2.  City Council, as Shareholder, approve amendments to Toronto Community Housing Corporation's financial control By-law (By-law 3), forming Attachment 3 to the report (June 4, 2018) from the Interim City Manager and the Interim Chief Financial Officer.

3.  City Council, as Shareholder, request the Toronto Community Housing Corporation to align its financial control By-law (By-law 3) with the City's financial management and control By-law once revisions are approved by Council.

4.  City Council, as Shareholder, approve the dissolution of Toronto Community Housing Corporation subsidiaries Don Mount Court Development Corporation and Access Housing Connections Incorporated.

5.  City Council direct that the confidential information contained in Confidential Attachment 5 to the report (June 4, 2018) from the Interim City Manager and the Interim Chief Financial Officer remain confidential in its entirety, as it deals with personal matters about an identifiable person.

6.  City Council direct the City Clerk to forward a copy of Toronto Community Housing Corporation's 2017 Audited Consolidated Financial Statements December 31, 2017, forming Attachment 2 to the report (June 4, 2018) from the Interim City Manager and the Interim Chief Financial Officer, to the Audit Committee for information.

This report recommends the actions necessary to comply with the requirements of the Ontario Business Corporations Act (OBCA) for holding an Annual General Meeting of the Shareholder of Toronto Community Housing Corporation (TCHC), including receipt of Toronto Community Housing Corporation's 2017 Audited Consolidated Financial Statements and appointment of the auditor for Toronto Community Housing Corporation for 2018.

This report also recommends that Council approve the dissolution of two non-active Toronto Community Housing Corporation subsidiaries, and amendments to Toronto Community Housing Corporation's financial control By-law, as required under the Ontario Business Corporation's Act and the Shareholder Direction to Toronto Community Housing Corporation.

The Executive Committee recommends that:  

1.  City Council treat that portion of the City Council meeting at which the report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer is being considered as the Annual General Meeting of the Shareholder for Toronto Hydro Corporation, and in accordance with the proposed recommendations in the "Toronto Hydro Corporation Report on the 2017 Annual Shareholder Meeting" dated May 18, 2018 contained in Attachment 1 to report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer:

a.  approve the "Resolution of the Sole Shareholder Re-appointing Auditor" in Attachment 1 Appendix A to report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer in order to re-appoint KPMG LLP, Chartered Accountants, as the auditor for Toronto Hydro Corporation for 2018 until the close of the next annual meeting of the Shareholder, or until a successor is appointed, at such remuneration as may be fixed by the Corporation's Board;

 
b.  receive the "Toronto Hydro Corporation 2017 Annual Report - Energizing Growth and Innovation," the "Toronto Hydro Corporation 2017 Financial Report dated December 31, 2017 including Toronto Hydro Corporation's Audited Consolidated Financial Statements and the Auditors' Report," the "Toronto Hydro Corporation Annual Information Form for the Year Ended December 31, 2017," the "Toronto Hydro Corporation 2017 Environmental Performance Report," the "Toronto Hydro Corporation Chief Executive Officer and Chief Financial Officer Certification of Annual Filings," the "Toronto Hydro Corporation First Quarter Financial Report dated March 31, 2018," and the "Toronto Hydro Corporation Statement of Remuneration and Expenses for Council Appointees for the Year Ended December 31, 2017," forming Attachments 2, 3, 4, 5, 6a, 6b, 12, and 13 respectively to the report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer;

 
c.  receive the "Toronto Hydro Corporation Report to the Shareholder for the Year Ended December 31, 2017," the "Toronto Hydro Corporation Non-Consolidated Financial Statements dated December 31, 2017," the "Financial Statements of Toronto Hydro-Electric System Limited dated December 31, 2017" and the Auditors' Report thereon, and the "Financial Statements of Toronto Hydro Energy Services Inc. dated December 31, 2017" and the Auditors' Report thereon, forming Confidential Attachments 7, 8, 9 and 10 respectively to the report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer; and

 
d.  receive the two-part report "Executive Compensation Disclosure Toronto Hydro Corporation 2017", forming Attachment 11a and Confidential Attachment 11b to the report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer.
 

2.  City Council direct that Confidential Attachments 7, 8, 9 and 10 to the report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer remain confidential in their entirety due to the security of the property of the City and securities requirements arising from Toronto Hydro Corporation's status as an offering corporation under the Business Corporations Act, (Ontario) R.S.O. 1990, c.B.16, Toronto Hydro Corporation's status as a reporting issuer under the Securities Act, (Ontario) R.S.O. 1990, c.S.5, and the application by the Ontario Securities Commission of National Instrument 51-102.

 
3.  City Council direct that Confidential Attachment 11b to the report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer remain confidential in its entirety as it deals with personal information about identifiable individuals.

 
4.  City Council direct the City Clerk to forward a copy of the "Toronto Hydro Corporation Consolidated Financial Statements December 31, 2017 and 2016", included as part of Attachment 3 to the report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer, to the Audit Committee for information.

The Executive Committee directed the City Manager to conduct a gap analysis comparing executive salaries and compensation provided by Toronto Hydro Corporation with similar publicly-owned municipal utilities, including details of those comparators and the methodology used, and include responses to prior Executive Committee requests on a review of executive compensations as per Items EX30.10 and EX30.35, and report to the Executive Committee by the end of the first quarter of 2019.

This report contains recommendations for actions necessary to comply with the requirements of the Business Corporations Act, (Ontario) R.S.O. 1990, c.B.16 (OBCA) for holding the Annual General Meeting of the Shareholder of Toronto Hydro Corporation (THC) including receipt of Toronto Hydro Corporation's audited annual consolidated financial statements for 2017 and appointment of the auditor for Toronto Hydro Corporation for 2018.

This report also contains recommendations for receipt at the Annual General Meeting of the Shareholder of Toronto Hydro Corporation of other reports provided by Toronto Hydro Corporation as required by the Amended and Restated Shareholder Direction Relating to Toronto Hydro Corporation (Shareholder Direction) which, in addition to the Ontario Business Corporations Act requirements, include:

- Toronto Hydro Corporation's annual report, environmental performance report and annual information form;

- Toronto Hydro Corporation's report to the Shareholder, consolidated and non-consolidated financial statements and financial statements for its subsidiary companies. Note that Toronto Hydro Corporation has advised the City that Attachments 7, 8, 9 and 10 are confidential due to: the security of the property of the City, and securities requirements arising from Toronto Hydro Corporation's status as an offering corporation under the Ontario Business Corporations Act, Toronto Hydro Corporation's status as a reporting issuer under the Securities Act (Ontario), R.S.O. 1990, c.S.5, and the application by the Ontario Securities Commission of National Instrument 51-102; and

- Toronto Hydro Corporation's disclosure of executive compensation in two parts, with the part in Attachment 11b being confidential as it includes personal information about identifiable individuals.

The Executive Committee recommends that:

1.  City Council treat that portion of the City Council meeting at which the report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer is considered as the Annual General Meeting of the Shareholder for Toronto Port Lands Company by:

a.  receiving the "Toronto Port Lands Company 2017 Annual Report", forming Attachment 1 to the report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer;

b.  appointing PricewaterhouseCoopers LLP, Chartered Accountants, as the Auditor of Toronto Port Lands Company for fiscal year 2018, and authorizing the Board of Directors of Toronto Port Lands Company to fix the remuneration of the Auditor; and

c.  receiving the "Toronto Port Lands Company Executive Compensation Disclosure 2017", forming Attachment 2 to the report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer.

2.  City Council direct the City Clerk to forward a copy of the "Toronto Port Lands Company 2017 Audited Annual Financial Statements", forming Attachment 3 to the report (June 5, 2018) from the Interim City Manager and the Interim Chief Financial Officer, to the Audit Committee for information.

This report contains recommendations for the actions necessary to comply with the requirements of the Business Corporations Act, Ontario (OBCA) for holding the Annual General Meeting of the Shareholder of Toronto Port Lands Company, including receipt of its Annual Report and Audited Financial Statements for 2017 and appointment of the auditor for 2018.

This report also contains recommendations for receipt at the Annual General Meeting of the Shareholder of information disclosing the individual compensation of executive officers employed by Toronto Port Lands Company in 2017.

The Executive Committee recommends that:  

1.  City Council approve the following amendments to the City Council-approved Investment Policy (Policy) and adopt the amended Policy as set out in Attachment 2 to the report (June 5, 2018) from the Interim Chief Financial Officer:
 

a.  the Asset Mix for Equities for Long Term Fund and Sinking Fund be adjusted by combining all four equity categories into one category called "Global Equity" with a Targeted Asset Mix of 20-percent with a range from a Minimum of 0-percent to a Maximum of 30-percent;

b.  the MSCI All-Country World Index (MSCI ACWI) be included as a benchmark to measure the performance of the equity portfolio in its entirety for the Long Term Fund and Sinking Fund;

c.  the benchmark for the Fixed Income component of the Sinking Fund be changed to "Customized" based on the "Liability Driven Investments" approach;   

d.  the average credit rating of the fixed income portfolio for the Long Term Fund and Sinking Fund be lowered from "A" to "A-" (or equivalent) to be equal to the fixed income benchmark (Financial Times Securities Exchange (FTSE) TMX Universe Canada Bond Index);

e.  the Asset Mix for the Trust Fund be adjusted by increasing the Maximum weight of Schedule 1 Bank from 50 percent to 100 percent which aligns with the current limit in the Investment Policy for the City's Short Term Fund;

f.  the minimum credit rating requirements of the Schedule 1 Banks for the Trust Funds be lowered from "AA-" to "A" (or equivalent) to be the same as the requirements for the City's Short Term Fund.

2.  City Council approve the establishment of a corporate reserve account named the Investment Stabilization Reserve in Schedule 3 - Stabilization Reserves of City of Toronto Municipal Code Chapter 227, Reserves and Reserve Funds ("Chapter 227"), the purpose of which is to stabilize investment income contributions to the operating budget by minimizing in-year variances through receiving funds in years when investment income is in excess of the amount expected in the operating budget and withdrawing funds in years when investment income is below budget, with criteria as set out in Attachment 5 to the report (June 5, 2018) from the Interim Chief Financial Officer.

This report was written to comply with the Council-approved Investment Policy and provides the following information:

1.  Performance of the Funds – for the year of 2017 and for the first quarter of 2018

2.  General Market Update and Benchmark Performance

3.  Recommendations for Investment Policy Changes

During 2017, the City's investment portfolio that holds the City's working capital and the amounts designated for the City's reserves and reserve funds earned $130.9 million in 2017 and $36.5 million in the first quarter of 2018 (2.6 percent and 3.2 percent annualized respectively). 

The City's sinking funds portfolio that holds funds for future debt repayments earned $59.7 million in 2017 and $13.5 million in the first quarter of 2018 (3.8 percent and 3.2 percent annualized respectively).  

Effective January 1, 2018, the City's investments are now managed under a new City Council adopted Investment Policy which is based on the prudent investor standard. Minor changes to the Investment Policy are recommended in order to improve the efficiency and effectiveness of the Toronto Investment Board's (the Board) Investment Plan. 

This report also responds to City Council direction to report on the selected investment manager's Environmental, Social and Governance (ESG) polices, and other developments related to Environmental Social and Governance factors. Environmental Social and Governance policies are an important part of the investment manager selection process currently underway. The City will recommend only those prospective fund managers who are United Nations Principles of Responsible Investing signatories, or equivalent, and use these principles in their investment decision process.

The Executive Committee recommends that:

1.  City Council authorize the levy and collection of amounts for the 2018 taxation year on colleges and universities, public hospitals, and correctional facilities as authorized by Section 285 of the City of Toronto Act, 2006 and City Council direct that the maximum prescribed amount of $75 be applied per provincially rated hospital bed, full time student, or resident place as prescribed by Ontario Regulation 121/07.

That:

2.  City Council forward the Item to the Premier of Ontario and the Ontario Minister of Finance and request the Province to increase the $75.00 levy annually by the rate of inflation.

3.  City Council forward the Item to the Association of Municipalities Ontario (AMO).

The Executive Committee:

1.  Requested that the Treasurer to report directly to City Council at its meeting of June 26, 2018 on the final 2018 Heads and Beds levy amount should the final 2018 capacity figures for colleges be received from the Province prior to this City Council meeting.

This report requests Council authority to adopt a by-law to levy amounts for the 2018 taxation year for colleges and universities, public hospitals, and correctional facilities (the "institutions"), estimated at approximately $18.2 million (annual "Heads and Beds" levy).

The Executive Committee recommends that:

1.  City Council authorize the levy and collection of taxes for the 2018 taxation year on railway roadways and rights-of-way and on land used as transmission or distribution corridors owned by power utilities, in accordance with subsection 280 (1) of the City of Toronto Act, 2006 and subsection 257.7 (1) the Education Act.

2.  City Council request the Interim Chief Financial Officer to include information in future annual reports on the potential additional income the City of Toronto could receive if the levy was based on a rate per tonnage as opposed to a rate per acreage.

This report seeks Council authority for the introduction of the by-law necessary to levy and collect taxes for the 2018 taxation year on railway roadways and rights-of-way and on land used as transmission or distribution corridors owned by power utilities, totalling approximately $7.1 million in taxation revenue, of which the municipal share is $6.6 million and the provincial education share is $0.5 million.

The Executive Committee recommends that:

1.  City Council authorize the Toronto Atmospheric Fund to borrow up to $5 million from the Federation of Canadian Municipalities for the purpose of financing eligible capital costs associated with the construction of the next phase of the Tower-wise project building retrofits identified in Confidential Attachment 1 to the report (June 4, 2018) from the Interim Chief Financial Officer and for a term that extends beyond the current Term of Council. 

2.  City Council authorize the Toronto Atmospheric Fund to enter into a secured loan agreement with the Federation of Canadian Municipalities by way of the pledge of a portion of the City and Provincial endowments of the Toronto Atmospheric Fund, subject to the following conditions:

a.  Toronto Atmospheric Fund be permitted to pledge a portion of the City endowment, not to exceed $4 million, as security for the loan from the Federation of Canadian Municipalities Green Municipal Fund and for no other purpose;

b.  Toronto Atmospheric Fund be permitted to pledge a portion of the Provincial endowment, not to exceed $1.9 million, as security for the loan from the Federation of Canadian Municipalities Green Municipal Fund and for no other purpose;

c.  the terms and conditions of the City pledge consent not to be inconsistent with the existing Provincial pledge consent dated May 8, 2018 (Attachment 2 to the report (June 4, 2018) from the Interim Chief Financial Officer) and be on such other terms as deemed appropriate by the Interim Chief Financial Officer in consultation with the City Solicitor;

d.  the default provisions of the secured loan agreement between Toronto Atmospheric Fund (TAF) and the Federation of Canadian Municipalities provide that in the event of default by the Toronto Atmospheric Fund, any resort to the City pledge and the Provincial pledge be equitable and allocated on a pro rata basis based on the proportionality ratio of the Funds in effect at the time of the loan disbursement;

e.  the provisions of the secured loan agreement between Toronto Atmospheric Fund (TAF) and the Federation of Canadian Municipalities not permit any recourse to the City in the event of a default by the Toronto Atmospheric Fund;

f.  the Toronto Atmospheric Fund not allow any other third party pledges against its marketable securities for the purpose of the Project without the approval of City Council;  

g.  the current TD Canada Trust fixed assets pledge (City Endowment) be reduced to an amount not to exceed $3.1 million for the existing $2.4 million Line of Credit to be negotiated by the Toronto Atmospheric Fund on terms that are satisfactory to the Interim Chief Financial Officer; and

h.  the current TD Canada Trust fixed assets pledge (Provincial Endowment) be reduced to an amount not to exceed $2.1 million for the existing $1.6 million Line of Credit to be negotiated by the Toronto Atmospheric Fund.

3.  City Council authorize the Toronto Atmospheric Fund to accept a grant of up to $750,000 from the Federation of Canadian Municipalities for eligible project costs as determined in the agreement with Federation of Canadian Municipalties.

4.  City Council direct the Toronto Atmospheric Fund to provide the status of the loan annually to the City's Chief Financial Officer to include, but not be limited to, updates on the drawdown and repayment of the loan.

5.  City Council authorize the public release of the agreement between Toronto Atmospheric Fund and Federation of Canadian Municipalities (Confidential Attachment 1 to the report (June 4, 2018) from the Interim Chief Financial Officer) once the loan agreement is signed between Toronto Atmospheric Fund and Federation of Canadian Municipalities and financing agreements are signed with the participating building owners.

The Federation of Canadian Municipalities (FCM) has approved Toronto Atmospheric Fund's (TAF) application for a loan of up to $5 million and a complementary grant of up to $750,000 for the next phase of Toronto Atmospheric Fund's TowerWise program (the Project).  The proceeds from the loan will be used for the multi-measure retrofits of four multi-residential buildings. The project aligns with TransformTO's goal of achieving an 80 percent greenhouse gas reduction target by 2050 which requires average greenhouse gas reduction of 40 percent across all existing Toronto homes and buildings. 

This report recommends that City Council give its approval for Toronto Atmospheric Fund to enter into the loan agreement with Federation of Canadian Municipalities, and for Toronto Atmospheric Fund to pledge up to $4 million of the Toronto Atmospheric Fund Fund to Federation of Canadian Municipalities as security for the loan.  Toronto Atmospheric Fund has also sought and received the Province's consent to pledge up to $1.9 million of the Provincial Endowment as security for the loan.

In addition this report updates previously provided authority to pledge assets as security.

All recommendations were developed in consultation with and are fully supported by staff at the Toronto Atmospheric Fund.

The Executive Committee recommends that:

1.  City Council adopt the Pregnancy and Parental Leave Policy for Members of Council, as outlined in Attachment 1 to the report (May 30, 2018) from the City Clerk.

2.  City Council amend the Constituency Services and Office Budget Policy related to office budgets in a year when ward boundary changes take effect, as outlined in Attachment 2 to the report (May 30, 2018) from the City Clerk.

3.  City Council adopt commemorative activities to be offered upon the passing of a current or former Council Member, included as Attachment 3 to the report (May 30, 2018) from the City Clerk.

4.  City Council authorize the following officials to provide administrative management of a vacant Council Member office, including, but not limited to, purchasing and staffing matters:

a.  the Deputy Mayor, in the case of a vacancy in the Office of Mayor; and

b.  the City Clerk, in the case of a vacancy in the Office of City Councillor.

This report recommends some new and updated Council Member policies and procedures in response to legislative requirements, and to address gaps in existing policies related to the death of a Council Member and Council Member vacancies. It seeks to:

- Implement a Pregnancy and Parental Leave Policy for Members of Council as required by recent amendments to the City of Toronto Act;

- Implement an administrative amendment to the Constituency Services and Office Budget policy to address the budget formula and carry-over provision for the transition between Council terms as a result of ward boundary changes;

- Formalize the commemorative activities offered by the City of Toronto upon the death of a Council Member; and

- Formalize the practices related to the operation of a Member's Office during a transition period following the death, resignation or ineligibility of a Member.

The Executive Committee received the report (June 6, 2018) from the Chief Information Officer for information.

The process for publishing open data to the City's open data catalogue ensures that privacy, security, and legislative obligations are taken into account. Through interviews and exploration of the datasets with the data owners and subject matter experts; including privacy and legal staff where required, a comprehensive understanding of the data and the context around the data is established and captured as part of the Open Data Approval to Publish process.  The Open Data Approval to publish process addresses concerns about data or information that are deemed to potentially affect the commercially confidential and proprietary interests of the City.

Section 10 of Municipal Freedom of Information and Protection of Privacy Act addresses matters concerning the disclosure of information which would reveal a confidential trade secret or scientific, technical, commercial, financial or labour relations information of a third-party. Section 11 addresses the issue of the disclosure of information belonging to the City or other institution that has, in itself, potential monetary value, or could reasonably be expected, if disclosed, to prejudice the City's economic interests or competitive position, or to be injurious to the City's financial interests. The consideration of these two sections provide the mechanisms and criteria utilized for evaluation pertaining to the City's commercially confidential and proprietary interests.

The established Open Data Approval to Publish processes enables the City to carry out its commitment to being Open by Default while meeting legislative requirements for privacy, security, and the commercially confidential and proprietary interests of the City.

The Executive Committee recommends that:  

1.  City Council authorize an extension of the date by which WoodGreen Community Housing Incorporated, or its successor, is obligated to re-convey 444 Logan Avenue to the City to July 1, 2019, to allow time for the City to negotiate the terms of the continued operation of this social housing project and to report back to City Council on the results of those negotiations and a recommended course of action.

WoodGreen Community Services has provided community, employment and housing services to residents of Toronto's east end for more than 75 years. WoodGreen Community Services is an umbrella organization that includes WoodGreen Community Housing Incorporated (WoodGreen).

This report recommends a one year extension for WoodGreen to re-convey the social housing building at 444 Logan Avenue to the City. The extension will allow WoodGreen and the City more time to negotiate the terms and conditions for WoodGreen's continued use and occupation of the property.

WoodGreen Community Centre Towers Incorporated (now WoodGreen Community Housing Incorporated) and Metropolitan Toronto entered into an agreement in October 1965 for the development and operation of 160 social housing units for low-income seniors at 444 Logan Avenue, on land conveyed to it by the City. Under this agreement, WoodGreen was to re-convey the property to the City on July 1, 2017. On March 28 and 29, 2017, City Council extended the reconveyance to July 1, 2018.

A Local Agency Housing Agreement between the City and WoodGreen was signed on May 15, 2018, which provides a framework to coordinate and support three WoodGreen housing initiatives: the residential redevelopment of 1117-1119 Gerrard Street East; the social housing at 835-841 Queen Street East; and the social housing for seniors at 444 Logan Avenue. Specifically, the Local Agency Housing Agreement allows the City and Woodgreen to renegotiate the terms of the reconveyance of 444 Logan Avenue to ensure the property's continued operation as affordable housing, and to ensure no loss of affordable rental housing in the City.

The Executive Committee recommends that:

1.  City Council authorize the Director, Affordable Housing Office, to provide capital funding from the Development Charges Reserve Fund for Subsidized Housing (XR2116) to St. Hilda's Towers Inc., or a related corporation in an amount not to exceed $750,000, to fund pre-development expenses including but not limited to architectural and project management costs related to the modernization of the St. Hilda's Vaughan and Dufferin Towers.  

2.  City Council authorize the Director, Affordable Housing Office to enter into a pre-development agreement with St. Hilda's or a related corporation, to provide the pre-development funding set out in Recommendation 1 above and to set out the terms of engagement of the City, the implementation steps to be taken and the timelines to be followed, in the modernization of St. Hilda's Dufferin and Vaughan Towers, on terms and conditions satisfactory to the Director, Affordable Housing Office and in a form acceptable to the City Solicitor.

3.  City Council authorize the Director, Affordable Housing Office and the General Manager, Shelter, Support and Housing Administration to support St. Hilda's or a related corporation, on an application to Canada Mortgage and Housing Corporation to secure capital funding and financing, for the modernization project, under the recently announced National Housing Strategy Co-Investment Fund.

4.  City Council authorize the Director, Affordable Housing Office, in consultation with the General Manager, Shelter, Support and Housing Administration and the Toronto Central Local Integration Network to support St. Hilda's or a related corporation, in issuing a competitive proposal call to secure non-profit supportive housing provider(s) and to select the most qualified non-profits(s) to assume and operate the affordable housing buildings on the St. Hilda's site.

5.  City Council authorize that the proposed modernization project at St. Hilda's be exempt from the payment of development charges, planning and parkland dedication fees and building permits under existing City policy, where applicable.

6.  City Council authorize the Director, Affordable Housing Office and the General Manager, Shelter, Support and Housing Administration to assign City representatives in an advisory role to the St. Hilda's modernization committee to participate in overseeing the implementation of the modernization of St. Hilda's.  

7.  City Council authorize the General Manager, Shelter, Support and Housing Administration to provide funding from the 2019-2020 and 2020-2021 allocation of the Social Housing Apartment Improvement Program in an amount up to and not to exceed $8,000,000 to St. Hilda's Towers or a related corporation.

8.  City Council authorize the Director, Affordable Housing Office to negotiate, enter into, and execute on behalf of the City, a municipal housing facility agreement known as the City's "Contribution Agreement", with St. Hilda's or a related corporation, to secure the financial assistance being provided and to set out the terms of the modernization and operation of St. Hilda's, on terms and conditions satisfactory to the Director, Affordable Housing Office and the General Manager, Shelter, Support and Housing Administration and in a form approved by the City Solicitor.

9.  City Council authorize the General Manager, Shelter, Support and Housing Administration to provide on behalf of the City all necessary social housing service manager consents under the Housing Services Act to transfer or mortgage any of the housing projects or the land where they are located on terms and conditions satisfactory to the General Manager and in a form acceptable to the City Solicitor and to provide all necessary notices to the Minister of Housing.

10.  City Council authorize the City Solicitor, to execute, on behalf of the City, any security or financing documents or any other documents required to facilitate the funding process, including any documents required by St. Hilda's or a related corporation, or its mortgagee(s) to complete construction and conventional financing and subsequent refinancing, where and when required during the term of the municipal housing facility agreement.

11.  City Council authorize the City Solicitor to execute, on behalf of the City, any postponement, confirmation of status, discharge or consent documents relating to the security given to secure the Contribution Agreement entered into with St. Hilda's or a related corporation, for the construction or operation of affordable rental housing on the St. Hilda's site as required by normal business practices.

12.  City Council request the Director, Affordable Housing Office and the General Manager, Shelter, Support and Housing Administration to report to the Executive Committee in early 2019 to provide a project status update, results of the National Co-Investment Fund application and to make any further recommendations to ensure the physical and financial viability of the St. Hilda's properties.

St. Hilda's Towers Inc. and the affiliated corporation, St. Hilda's Towers Lewis Garnsworthy Residence (collectively 'St. Hilda's'), owns and operates three residential social housing buildings located at the corner of Dufferin Street and Eglinton Avenue West, containing a total of 461 units designated for seniors.  

St. Hilda's is in financial difficulty due to high vacancy rates of over 60 percent resulting from capital repair issues in two of their three buildings (Dufferin and Vaughan Towers), and an unsustainable operating model. Due to these issues, St. Hilda's is seeking the City's urgent support on a modernization and future operating plan to maintain much-needed social housing units for seniors in the City.

As directed by City Council, the City's Affordable Housing Office and Shelter, Support and Housing Administration Division have been working with St. Hilda's, the Toronto Central Local Integration Network (TC-LHIN), the Ministry of Housing, and ERA Architects to develop a modernization strategy to rehabilitate the Dufferin and Vaughan Towers on the St. Hilda's site.

The purpose of this report is to update City Council on the results of the due diligence work completed to-date, and to recommend a funding model and modernization strategy to ensure the long-term sustainability of affordable seniors housing in Ward 15 Eglinton-Lawrence.

This report is recommending a full modernization program with an estimated cost of $38.2 million, funded and financed by a variety of available government funding streams, in order to preserve the affordable homes in the St. Hilda's buildings.

This report also supports and amplifies the need for strategic action regarding the preservation and rehabilitation of affordable units designated for seniors in Toronto. Building on the Toronto Seniors Strategy Version 2.0, the St. Hilda's modernization initiative promotes a systems level approach to meeting the needs of seniors in the City.

The Executive Committee recommends that:

1.  City Council authorize the General Manager, Solid Waste Management Services, to accept into its capital budget the previously authorized Municipal Greenhouse Gas Challenge Fund grant, totalling $10 million, and deposit such funds in account CSW017-02-25.

2.  City Council authorize the General Manager, Solid Waste Management Services, to administer the funds available in CSW017-02-25 to pay for the capital costs of the Renewable Natural Gas Project at the Dufferin Solid Waste Management Services Facility, located at 35 Vanley Crescent, beginning in 2018 and following the terms and schedules of the Ontario Transfer Payment Agreement.

3.  City Council amend the 2018 Capital Budget and 2019 to 2027 Capital Plan for Solid Waste Management Services by increasing the total project cost in 2018 to $16.317 million for the Biogas Utilization project at the Dufferin Solid Waste Management Services Facility (CSW017-02) with annual cash flows of $9.900 million in 2018; $0.211 million in 2019; $0.521 million in 2020 and $0.421 million in each year from 2021 to 2032. Funding includes the $10 million in grant funding from the Municipal Greenhouse Gas Challenge Fund and $6.317 million from the Waste Management Reserve Fund to be offset by future revenues from the project.

4.  City Council authorize the Lease with Enbridge for nominal consideration for a term of fifteen (15) years, substantially based on the terms and conditions set out in Attachment A to the report (June 5, 2018) from the General Manager, Solid Waste Management Services and the Director, Real Estate Services and on any other or amended terms and conditions as may be determined as appropriate by the Deputy City Manager, Internal Corporate Services and in a form acceptable to the City Solicitor.

5.  City Council authorize the Easement with Enbridge for nominal consideration, substantially based on the terms and conditions set out in Attachment A to the report (June 5, 2018) from the General Manager, Solid Waste Management Services and the Director, Real Estate Services and on any other or amended terms and conditions as may be determined as appropriate by the Deputy City Manager, Internal Corporate Services and in a form acceptable to the City Solicitor.

6.  City Council authorize the Deputy City Manager, Internal Corporate Services or designate to administer and manage the Lease and the Easement, including the provision of any consents, approvals, waivers, notices, and notices of termination, provided that the Deputy City Manager, Internal Corporate Services may, at any time, refer consideration of such matters to City Council for its determination and direction.

Throughout 2017 and 2018, Solid Waste Management Services has been working to develop Renewable Natural Gas opportunities to harness biogas/landfill gas produced at City waste facilities and turn it into Renewable Natural Gas. Further to City Council's authorization, City staff successfully negotiated an agreement with Enbridge Gas Distribution Inc. ("Enbridge") to construct and operate the City's first Renewable Natural Gas Facility at the Dufferin Organics Processing Facility at 35 Vanley Crescent. Once complete, this facility will help to reduce the City's greenhouse gas (GHG) emissions, produce fuel for our solid waste fleet, and generate additional non-tax/non-rate based revenues through the sale of Renewable Natural Gas.

To support the funding for this initiative, the City applied to the Municipal Greenhouse Gas ("Greenhouse Gas") Challenge Fund, a program issued by the Province of Ontario as part of its Climate Change Action Plan to support municipal initiatives that reduce greenhouse gas emissions in an effort to transition to a low-carbon economy.  Through the Municipal Greenhouse Gas Challenge Fund, City staff secured a total of $52 million towards various greenhouse gas mitigation projects. Of that, $10 million was granted towards the capital cost of the Dufferin Renewable Natural Gas project.

This report seeks authority to apply the grant funding from the Municipal Greenhouse Gas Challenge Fund to the Solid Waste Management Services capital budget and to make all the necessary adjustments in the 2018-2027 Capital Budget. This funding will be used to pay down the capital costs of the proposed Renewable Natural Gas facility.

In addition, as part of the Biogas Services Agreement with Enbridge, Enbridge has requested a lease agreement (the "Lease") for an area of approximately 2,930 square metres (the "Leased Area") in order to construct, operate and maintain the Facility for the duration of the agreement.

Enbridge has also requested a permanent easement (the "Easement") for a subsurface area of approximately 700 square metres (the "Easement Area") in order to establish the necessary pipe infrastructure to transport the renewable natural gas from the Facility to the distribution network operated by Enbridge.

Both the lease area and easement area are within property limits of the Solid Waste Management Services waste site.

The Executive Committee recommends that:

1.  City Council receive the report (June 13, 2018) from the Interim Chief Financial Officer for information.

The purpose of this report is to provide City Council with the City of Toronto capital performance for the year ended December 31, 2017. Actual capital expenditures for 2017 totalled $3.173 billion or 59.3 percent of 2017 approved Capital Budget of $5.347 billion (see Table 1).

For the year-ended December 31, 2017, Tax Supported Programs and Agencies reported capital expenditures of $2.365 billion representing 56.2 percent of their collective 2017 approved Capital Budget of $4.210 billion. Rate Supported Programs reported capital expenditures of $808.1 million, representing 71.0 percent of their collective 2017 approved Capital Budget of $1.138 billion.

Table 1: Summary of Capital Spending

The report also provides details on the 87 completed capital projects that have a combined budget of $272.628 million that were completed in the fourth quarter, 2017 and are ready to be closed. They have been completed with a total realized underspending of $38.095 million. The permanent underspending which has associated funding of $3.541 million in Provincial Grants, $6.398 million in Capital from Current, $18.500 million in debt, $2.163 million in Development Charges, $2.269 million in reserves/reserve funds, $0.952 million in Recoverable Debt and $4.272 million in other internal/external funds will be returned to their original Council approved funding sources.

For 2017, a total of 413 capital projects were completed with a combined capital budget of $919.234 million and an actual combined expenditure of $836.285 million, resulting in a total saving of $82.949 million or 9.0 percent.

A total of $4.008 billion or 75 percent of the 2017 approved Capital Budget is allocated to 9 Programs and Agencies, to which $1.745 billion or 80 percent of the underspending is also attributed, as illustrated in the Table 2 below.

Table 2: Key Drivers of underspending for 2017

Programs and Agencies reported that the rate of spending in 2017 was largely driven by expropriation process delays for the acquisition of various sites, unanticipated site conditions, longer than planned timelines to obtain necessary approvals or required permits and design issues. Further details on the progress of all approved capital projects for each City Program and Agency can be found in Appendix 4 of this report.

The Executive Committee recommends that:

1.  City Council authorize up to $13 million in additional 2018 funding to improve and accelerate the implementation of road safety measures identified in the City's Vision Zero Strategy, over and above the $21.3 million already budgeted for these initiatives in the approved 2018 Budget. Effective immediately, the funding for the implementation of these measures will be provided from surplus that is allocated to the Capital Financing Reserve.

2.  City Council direct the General Manager, Transportation Services to focus the road safety measures noted in Recommendation 1 above on increased and accelerated traffic calming measures, safety improvements, and street design interventions.

The purpose of this report is to provide Council with the City of Toronto's Operating Variance results for the year ended December 31, 2017 and the disposition of the 2017 year-end operating surplus.

As noted in Table 1, the final 2017 year-end expenditures for Tax Supported Operations resulted in a net favourable variance of $260.452 million available for distribution after Council directions and legislative requirements are met. This surplus represents 2.4 percent of the Tax Supported Gross Expenditure Budget and is consistent with historical year-end results.

Table 1: Tax Supported Operating Variance Summary ($ Millions)

In accordance with Council and legislative requirements, a portion of the surplus ($36.262 million) will be allocated to reserves for the following Programs and Agency: Toronto Building ($27.588 million), City Planning ($6.558 million) and Exhibition Place ($2.116 million).

The 2017 year-end net surplus of $260.452 million is driven largely by the following key factors:

- Over-achieved Municipal Land Transfer Tax revenue of $95.684 due to higher than anticipated real estate market activity.
 

- Under-expenditure by the Toronto Transit Commission of $88.695 million net primarily as a result of lower departmental material expenditures, labour costs, employee benefits and utility costs of $71.668 million net within Conventional Service, and fewer than budgeted customer journeys than planned within Wheel Trans of $17.027 million net.

 
- Favourable year-end variance in Supplementary Taxes of $15.230 million net due to the anticipated number of properties and assessment values received from Municipal Property Assessment Corporation (MPAC) being higher than budget.
 

- Higher than budgeted Interest / Investment Earnings of $15.747 million as a result of new investment tools for short term funds in 2017.
 

- Favourable year-end variance in Debt Charges of $12.122 million due to timing of debt issuance and lower interest rates.
 

- A remaining favourable variance of $32.974 million or 0.3 percent of the Gross Expenditure Budget for the balance of City Programs and Agencies primarily due to a combination of under spending in salary and benefits from vacant positions and volume driven under spending in non-salary expenditure categories.

Consistent with the Council approved Surplus Management Policy, at least 75 percent or $196.539 million will be allocated to the Capital Financing Reserve and the remaining $63.913 million will be allocated to underfunded liabilities and/or reserve funds.

Rate Supported Programs:

Rate Supported Programs reported a cumulative year-end net favourable variance of $29.356 million. Table 2 below summarizes the 2017 year end results for each Rate Supported Program:

Table 2: Rate Supported Net Variance Summary ($ Millions)

The key year-end net under spending was driven by:

- A year-end favourable variance of $4.028 million net in Solid Waste Management Services as a result of under expenditure in salaries and benefits in Collections and Litter Operations section, lower spending on contracted services due to lower tonnage of recyclable material processed, higher than budgeted revenues from tipping fees and sale of recyclables and scrap.
 

- A revenue shortfall in Toronto Parking Authority of $1.858 million net primarily due to off-street carpark closures and a delay in securing sponsorship for the Bike Share Program.
 

- A favourable variance in Toronto Water of $27.186 million net primarily due to lower than budgeted costs from fewer weather related emergencies and project delays, underspending in salaries and benefits from vacant positions, lower than anticipated demand for chemicals and lower than budgeted utility costs.

Complement:

Table 3: 2017 Year-End Vacancy Analysis

*Vacancy after Gapping % is based on operating positions only.

**Corporate Accounts are largely driven by Parking Enforcement Unit vacancies.

As of December 31, 2017, the City recorded an operating (service delivery) vacancy rate of 1.6 percent, after gapping, for an approved complement of 51,378 operating positions. The approved complement for capital (service delivery) positions at year-end is 3,471 positions with a recorded capital vacancy rate of 18.8 percent.

A detailed overview of the year-end complement is provided in the Approved Complement Section of this report.

The Executive Committee received the report (June 4, 2018) from the Interim Chief Financial Officer for information.

This report provides information on reserve and reserve fund balances as at December 31, 2017, indicating activity during the year, and annual budget projection balances.  The vast majority of these funds have been committed to fund capital projects and known future liabilities, leaving minimal amounts for discretionary spending.

The Executive Committee recommends that:    

1.  City Council amend the Children's Services 2018 approved Operating Budget to reflect an increase of $41.329 million gross, $0 net and the associated Service Levels, with the following allocations:

a.  an increase of $13.744 million gross, $0 net in General Operating Funding to improve affordability be made to eligible licensed child care programs, in accordance with City guidelines, fully funded by the Province;

b.  an increase of $8.305 million gross, $0 net for the Fee Stabilization Support program, fully funded by the Province;

c.  an increase of $0.358 million gross, $0 net for the Journey Together Program to increase the number of culturally relevant licensed child care spaces and child and family programs, fully funded by the Province;

d.  new funding of $4.792 million gross, $0 net for Licensed Home Child Care, to provide stable funding to benefit home child care providers in the form of increased compensation and benefit parents in the form of reduced fees, fully funded by the Province;

e.  an additional $0.845 million gross, $0 net for Specials Needs Resourcing, fully funded by the Province;

f.  an additional $1.240 million gross, $0 net to administer expansion and growth, that includes an additional 5 permanent positions and 3 temporary positions to support planning and implementation of system growth and expansion, fully funded by the Province; and

g.  new funding of $12.045 million for the Community-Based Early Years and Child Care Capital Program (CBCP), fully funded by the Province.

2.  Authorize the Acting General Manager, Children's Services to receive the funding from the Province of Ontario for the new Community-Based Early Years and Child Care Capital Program, and enter into Service Agreements that are to the satisfaction of the City Solicitor, with provider agencies in order to flow provincial funds to these agencies.

This report seeks approval to amend the 2018 Approved Operating Budget for Children's Services to reflect an increase of $41.329 million in Year 2 Provincial contributions.

This report recommends amendments to the 2018 Approved Operating Budget for Children's Services that supports the City Council-approved Child Care Service Plan 2015 - 2019, the City Council approved Toronto's Licensed Child Care Growth Strategy for Children under 4, 2017-2026 and the Child Care Growth Strategy - Phase One Implementation (2017-2019).

The Executive Committee recommends that:

1.  City Council authorize the acceleration and deferral of funds in Fleet Services Division's 2017 Council Approved Capital Budget and 2018-2026 Capital Plan in the amount of $0.242 million, as illustrated in Appendix A to the report (May 30, 2018) from the General Manager, Fleet Services, with zero gross and net debt impact.

The purpose of this report is to amend the Fleet Services Division (FSD) 2017 Council Approved Capital Budget and 2018-2027 Capital Plan. The amendments will have zero gross and net debt impact and will better align 2017 and future cash flows with Fleet Services Division program requirements.

The Executive Committee recommends that:

1.  City Council approve the following adjustments to Toronto Public Library's 2018-2027 capital budget and plan with no net impact on annual debt levels:

a.  increase the cost of the Wychwood Branch capital project by $5.663 million, from $10.133 million to $15.796 million, funded by $4.509 million from the development charges reserve fund (XR2115), $0.800 million operating savings from branch closure and $0.354 million from debt originally planned for the Multi-Branch State of Good Repair program; and

b.  decrease the project cost of the Multi-Branch State of Good Repair program in 2020 by $0.354 million gross and debt from $4.027 million to $3.673 million.

2.  City Council approve the following adjustments to Toronto Public Library's 2018-2027 capital budget and plan with no net impact on annual debt levels:

a.  increase the cost of the St. Clair/Silverthorn branch project by $0.918 million, from $2.897 million to $3.815 million, funded by $0.328 million from the development charges reserve fund (XR2115) and $0.590 million from debt transferred from the Multi-Branch State of Good Repair program; and

b.  in-year capital budget transfer of $0.590 million gross and debt from the Multi-Branch State of Good Repair program to the St. Clair/Silverthorn branch project.

3.  City Council approve the 2018 capital budget adjustment to increase the cost of the North York Central Library Phase 1 project by $2.500 million, from $14.974 million to $17.474 million, with 2018 cash flow increasing from $2.781 million to $5.281 million funded by $2.250 million of additional operating savings due to the extended branch closure for construction in 2018 and $0.250 million of development charges, with no impact to City debt.

The purpose of this report is to provide Executive Committee with Project Cost and Cash Flow Adjustments to the Toronto Public Library's 2018 Capital Budget and 2019-2027 Capital Plan as approved by the Toronto Public Library (TPL) Board.

The Executive Committee recommends that:

1.  City Council authorize the following adjustments and increases to the Approved 2018 Fleet Services Capital Budget and 2019-2027 Plan:

a.  create a new capital project named "Biodiesel Pilot Project" with total project cost of $198,400, and cash flows of $131,700 in 2018 and $66,700 in 2019, with 2019 costs to be funded from the Vehicle and Equipment Reserve (XQ0003);

b.  reallocate $131,700 project cost and cash flow from the Fleet Management and Fuel System Integration Project (CFL048-04) to the new capital project, "Biodiesel Pilot Project", through an in-year budget adjustment in 2018, with a net zero budget impact to the 2018 Approved Fleet Capital Budget.

The purpose of this report is to identify the source and funds required to conduct a biodiesel pilot to evaluate the use of B10 biodiesel (10 percent biofuel, 90 percent diesel) in the four (4) coldest winter months and B20 biodiesel (20 percent biofuel, 80 percent diesel) for the remaining eight (8) months of the year.  The results of the pilot will allow the Fleet Services Division to identify a plan for the City to move forward with a comprehensive biodiesel strategy.

The Executive Committee recommends that:

1.  City Council approve in-year budget adjustments to the 2018-2027 Approved Capital Budget and Plan as detailed in Appendix 4 to the report (May 18, 2018) from the Interim Chief Financial Officer that result in no incremental impact on debt funding.

2.  City Council approve additional 2017 carry forward funding for Sony Centre as detailed in Appendix 6 to the report (May 18, 2018) from the Interim Chief Financial Officer, and increase 2018 Approved Capital Budget by $0.989 million to be funded from Development Charges ($0.289 million) and other developer contribution ($0.700 million).

3.  City Council receive for information the list of 30 completed capital projects/sub-projects to be closed as detailed in Appendix 2 to the report (May 18, 2018) from the Interim Chief Financial Officer that results in a total combined project budget underspending of $4.498 million.

The purpose of this report is to provide City Council with the City of Toronto capital spending for the three month period ended March 31, 2018, as well as projected actual expenditures to December 31, 2018. Furthermore, this report seeks City Council's approval for in-year budget adjustments to the 2018 Approved Capital Budget and additional carry-forward from 2017 that have no impact on approved debt.

The report also details the 30 completed capital projects that have a combined budget of $72.114 million that are ready to be closed. They have been completed under budget, realizing underspending of $4.498 million. The permanent underspending which has associated funding of $0.859 million in debt, $3.446 million in reserves/reserve funds, $0.005 million in Provincial Grants, $0.025 million in Development Charges and $0.164 million in other Revenue will be returned to their original funding sources.

Table 1: Three months and Year-end Projected Spending Rate

The spending pattern for the first three months is typically within 10 percent of the total City Council Approved Capital Budget. As detailed by City Program and Agency in Appendix 1, total expenditures for the first three months of 2018 is $0.510 billion or 8.7 percent of the 2018 City Council Approved Budget, representing a higher spending rate than prior years, when compared to $285.884 million or 5.4 percent in the first quarter of 2017 and $277.337 million or 5.9 percent in the first quarter of 2016.

The projected expenditure to year-end is expected to reach $4.674 billion or 80.1 percent of the total 2018 Approved Capital Budget. 23 of the 31 City Programs and Agencies have projected year-end spending rate in excess of 70 percent: Tax Supported Programs project a spending rate of 79.7 percent while Rate Supported Programs project a spending rate of 81.8 percent by year-end.

The projected year-end spending rates presented in this report are based on the submissions from each Program and Agency, and as such, the preparation of this report has been based on this information.

Figure 1 below compares the actual year-end spending rate from 2013 to 2018 showing the 5 year average spending rate from 2012 to 2016, the third quarter projected year-end spending for 2017 and the first quarter projected year-end spending rate for 2018.

Figure 1: 2013 - 2018 Capital Spending Rate

(See Figure 1 titled "2013 - 2018 Capital Spending Rate ",

in the Summary section of the report dated

May 18, 2018 from the Interim Chief Financial Officer)

The 2018 Capital Budget of $5.833 billion represents the highest Capital Budget the City has had for its Tax and Rate Supported Programs. This level of funding reflects a City Council Approved Capital Budget of $4.011 billion plus a combined adjustment for 2017 carry forward funding and 2018 in-year budget amendments of $1.822 billion.

Both the Approved Capital Budget (including carry forward funding) and actual capital expenditures have been steadily trending upwards over the last 5 years: from $2.386 billion in 2013 to spending of $2.855 billion in 2016 and projected in the third quarter 2017 to reach $3.681 billion by the end of 2017. While overall capital spending has increased annually, the spending rate is relative to the higher approved funding levels. The projected year-end spending rate of 80.1 percent for 2018 is higher compared to historic year-end spending rates. This is the best estimate that City Programs and Agencies can provide at this early stage in the year.

The Executive Committee recommends that:

1.  City Council direct that Heads of City Divisions and Agencies projecting year-end unfavourable variances implement mitigation strategies effective immediately in conjunction with the Interim Chief Financial Officer and that the Interim Chief Financial Officer report back to Executive Committee with the Five Month Operating Variance Report on actions being taken to offset these projected net over-expenditures or unrealized revenues.

2.  City Council approve the budget adjustments and any associated complement changes detailed in Appendix F to the report (May 18, 2018) from the Interim Chief Financial Officer to amend the 2018 Approved Operating Budget that have no impact to the 2018 Approved Net Operating Budget of the City.

The purpose of this report is to provide City Council with the operating variance for the three months ended March 31, 2018 as well as projections to year-end. This report also requests City Council's approval for amendments to the 2018 Approved Operating Budget that have no impact on the City's 2018 Approved Net Operating Budget.

The following table summarizes the financial position of the City's Tax Supported Operations as of the first fiscal quarter and the projection at year-end:

Table 1: Tax Supported Operating Net Variance Summary

In accordance with the Building Code Act, the surplus from Toronto Building must be contributed to the Building Code Act Service Improvement Reserve Fund to create and maintain systems and processes which enable service delivery timelines and reporting requirements of the Province's Bill 124, Building Code Statute Law Amendment Act, and 2002 Legislation to be met.

Year-to-Date Spending Results:

As noted in Table 1 above, Tax Supported Operations reported a favourable net variance of $74.793 million or 7.7 percent of planned expenditures for the three months ended March 31, 2018, and are projecting a year-end shortfall of $10.113 million or 0.2 percent of the 2018 Approved Operating Budget.

The year-to-date net underspending was primarily driven by:

- Over-achieved Municipal Land Transfer Tax revenue due to higher than anticipated non-residential market activity in the first quarter ($30.074 million net).
 

- Underspending by Transportation Services driven by lower contract costs, lower than planned salary and benefit spending due to vacant positions and higher than planned revenue from permit fees ($8.987 million net).

 
- Lower than planned Debt Charges in the first quarter as a result of the anticipated debt interest payment being posted a month later than planned ($8.612 million net).
 

- Favourable variance in Parks, Forestry and Recreation is primarily driven by underspending in salaries and benefits due to delays in the hiring process of hard-to-fill classifications including the timing of seasonal skilled labour requirements ($6.666 million net).
 

- Underspending by the Toronto Transit Commission of $9.335 million net primarily as a result of lower departmental material expenditures, labour, and utility costs of $6.419 million net within the Conventional Service, and lower net costs of $2.916 million associated with lower than planned ridership within Wheel Trans.
 

- Over-achieved revenue in Toronto Building primarily due to the increasing number of building permit applications ($5.143 million net).

Year-End Spending Projections:

Contrary to the first quarter trend, the City is projecting a net unfavourable year-end variance of $10.113 million or 0.2 percent of the 2018 Approved Operating Budget. The key drivers for the expected unfavourable year-end net position are largely due to the following:

- Over expenditure in Shelter, Support and Housing Administration of $22.351 million net due to increased occupancy pressures and demand for Hostel Services.
 

- Under-achieved revenue in Transportation Services of $9.974 million net as a result of lower than budgeted utility cut repair net revenue and utility cut fixed permit fee revenue due to lower than budgeted volumes.
 

- Over spending in Toronto Police Service of $3.800 million net due to higher than budgeted salary and benefits costs, driven by overtime spending for uniformed officers to meet service demands and an increase in the establishment for Communications Operators in order to meet the standard call centre response times.
 

- The above over-spending will be partially offset by $27.027 million as a result of:

- Higher than budgeted revenue in City Planning and Toronto Building from expected continuation of higher development activity;
 

- Higher Dividend Income from Toronto Hydro final 2017 performance based on the receipt of the Corporation's financial statements;
 

- Continued under-spending in Municipal Licensing and Standards on salaries and benefits from vacant positions; and
 

- Sustained under-spending in Toronto Conventional Service - Wheel Trans programs.

Consistent with the City's financial management practices and policies, Programs and Agencies projecting an unfavourable year-end variance are required to identify and implement mitigation strategies to offset these projected overspending or unrealized revenues. The actions taken to address any projected shortfalls will be included as part of the Five Month Operating Variance report.

Rate Supported Programs:

As noted in Table 2 below, Rate Supported Operations reported a favourable net variance of $26.585 million and are projecting a year-end under-expenditure of $11.919 million for the three months ended March 31, 2018.

Table 2: Rate Supported Net Variance Summary ($ Millions)

The key year-to-date net underspending in Rate Supported Programs was driven by:

- Under-spending in Solid Waste Management Services of $2.736 million net or 11.5 percent in salaries and benefits due to vacancies in Collections and Litter Operations. However, due to anticipated decrease in revenue as a result of changing global market conditions for recyclable materials, an unfavourable year-end projection of $2.931 million net is anticipated.
 

- A favourable variance in Toronto Parking Authority of $0.347 million net or 2.6 percent is primarily due to lower than anticipated utility costs, parking equipment repair costs, municipal taxes, which partially offset by higher credit card processing fees and lower on-street and off-street parking revenues. Toronto Parking Authority is anticipating a further decrease in revenue for on and off-street parking as well as a delay in acquiring sponsorship for the Bike Share Program, resulting in an unfavourable year-end projection of $3.750 million net.

 
- Positive revenue in Toronto Water of $23.502 million net reflecting the sale of water being posted in advance of the first quarter plan, as well as an overall volume increase for new sewer service connections, private water agreements and one-time compensation from third party for damages related to a previously completed capital project. A favourable year-end variance of $18.600 million is forecasted on the basis of continued underspending in salary and benefits from vacant positions and the unanticipated one time revenue from a third party.

Complement:

As of March 31, 2018, the City recorded an operating vacancy rate of 1.7 percent after gapping against an approved complement of 51,875.2 operating or service delivery positions. The year-to-date vacancy rate for capital positions was 26.0 percent of an approved complement of 3,658.2 positions for capital project delivery.

Table 3: 2018 Year-To-Date Vacancy Rate

*Vacancy after Gapping % is based on operating positions only.

**Corporate Accounts are largely driven by Parking Enforcement Unit vacancies

The year-end operating vacancy rate, after gapping, is projected to be on budget for an approved complement of 51,753.2 operating positions. The forecasted vacancy rate for capital positions is projected to be 6.4 percent for an approved complement of 3,639.2 positions by year-end.

Table 4: 2018 Year-End Projected Vacancy Rate

*Vacancy after Gapping % is based on operating positions only.

**Corporate Accounts are largely driven by Parking Enforcement Unit vacancies

A detailed overview of the first quarter complement is provided in the Approved Complement Section of this report.

The Executive Committee recommends that:

1.  City Council authorize the reallocation of funds in Facilities, Real Estate, Environment and Energy's 2018 Council Approved Capital Budget in the amount of $2.35 million, as illustrated in Schedule A to the report (May 10, 2018) from the General Manager, Facilities Management, with zero gross and net debt impact.

2.  City Council amend the 2018-2027 Council Approved Capital Budget and Plan for Facilities, Real Estate, Environment and Energy (FREEE) to add a new capital project called "Various Locations - Fire Services Security Upgrades" with total project cost and cash flow in 2018 of $0.750 million for Fire Services security upgrades fully offset by a decrease in total project cost and cash flow for "Structural/Building Envelope" (CCA218-06) in 2018 of $0.750 million as illustrated in Schedule A to the report (May 10, 2018) from the General Manager, Facilities Management, with zero gross and net debt impact.

3.  City Council authorize the deferral and acceleration of funds in Facilities, Real Estate, Environment and Energy's 2018 Council Approved Capital Budget and 2019‑2027 Capital Plan in the amount of $2.00 million, as illustrated in Schedule B to the report (May 10, 2018) from the General Manager, Facilities Management, with zero gross and net debt impact.

The purpose of this report is to amend the Facilities, Real Estate, Environment and Energy (FREEE) 2018 Council Approved Capital Budget and 2019-2027 Capital Plan.  The amendments will have zero gross and net debt impact and will better align 2018 and future cash flows with Facilities, Real Estate, Environment and Energy program requirements.

The Executive Committee recommends that:

1.  City Council authorize the reallocation of funds and revision to project costs within the Parks, Forestry and Recreation 2018 Council Approved Capital Budget and future year commitments in the amount of $5.110 million, as included in Appendix 1 to the report (May 18, 2018) from the General Manager, Parks, Forestry and Recreation, with no debt impact.

2.  City Council authorize the deferral of $17.156 million and acceleration of $30.253 million for projects in Parks, Forestry and Recreation's 2018 Council Approved Capital Budget and future year commitments, as included in Appendix 2 to the report (May 18, 2018) from the General Manager, Parks, Forestry and Recreation, with a 2018 gross increase and 2019 gross decrease of $13.097 million with no debt impact.

3.  City Council authorize amendments to project costs and cash flows within the Parks, Forestry and Recreation approved 2018 Capital Budget and future year commitments in the amount of $5.527 million, as included in Appendix 3 to the report (May 18, 2018) from the General Manager, Parks Forestry and Recreation, with no debt impact.

4.  City Council authorize an amendment to the Parks, Forestry and Recreation approved 2018 Capital Budget to change the project scope for the following projects:

a.  change the location of the Garland Park New Playground sub-project in the Playgrounds/Waterplays project to the Village Green Park Playground;

b.  change the Carlaw-Dundas Parkette sub-project in the Park Development project to Carlaw-Dundas and Ward 30 Park Improvements;

c.  change the Allan Gardens Artist Gardens Design S42 sub-project in the Park Development project to Allan Gardens Improvements Design S42;

d.  change the Allan Gardens Artist Gardens Construction sub-project in the Park Development project to Allan Gardens Improvements Construction.

5.  City Council approve an amendment to the Parks, Forestry and Recreation approved 2018 Capital Budget for the Pessoa Park Development sub-project in the Park Development project, by increasing the project cost by $0.800 million from $0.330 million to $1.130 million with the $0.800 million cash flowed in 2019 and funding from the Parkland Acquisition South District Local Land Reserve Fund (XR2208).

6.  City Council authorize the General Manager, Parks, Forestry and Recreation to negotiate and execute an Agreement with 11 Peel Avenue Inc. operating as Streetcar Developments, for the City to provide funding in the amount of $1.130 million for the increased costs associated with the environmental cleanup of the Pessoa Park lands owned by the City, for a term of one (1) year commencing on or about October 1, 2018 with the City having the option to extend the agreement on a month-to-month basis at the sole discretion of the General Manager, Parks, Forestry and Recreation for up to one additional year, all in a form satisfactory to the City Solicitor. All work at Pessoa Park shall comply with City of Toronto policies for Capital Projects.

7.  Subject to entering into an agreement with 11 Peel Avenue Inc., City Council authorize the General Manager, Parks, Forestry and Recreation to transfer up to $1.130 million from Parks, Forestry and Recreation's approved 2018 Capital Budget from the Pessoa Park Development sub-project in the Park Development project to 11 Peel Avenue Inc. operating as Streetcar Developments to fund the increased costs associated with the Pessoa Park capital project.

The purpose of this report is to request authority from City Council to amend the 2018 Council Approved Capital Budget and 2019-2027 Capital Plan for Parks, Forestry and Recreation (PF&R) by adjusting project costs and cash flows contained within the Budget and Plan.  These adjustments will align cash flows for capital project delivery schedules and program requirements and as a result, will have no impact to the timing of debt requirements.  Reallocations to cash flows and project costs are also requested where recent project bids exceed the current approved cash flow or alternatively to advance projects into 2018 that are ready to proceed.  The project scope for four projects is also being requested to be changed to incorporate new or additional locations for work to proceed. 

In addition, authority from City Council is required to negotiate and execute an Agreement with 11 Peel Avenue Inc. operating as Streetcar Developments, for the City to provide funding in the amount of $1.130 million for the increased costs associated with the Pessoa Park capital project, to be delivered by 11 Peel Avenue Inc. on city-owned lands.

The Executive Committee recommends that:

1.  City Council authorize the reallocation of funds within Toronto Water's Approved 2018 Capital Budget and 2019-2027 Capital Plan in the amount of $28.148 million, for acceleration and deferral of projects, as presented in Schedule A (Parts A, B and C) to the report (May 11, 2018) from the General Manager, Toronto Water, with a zero Budget impact.

2.  City Council authorize the reallocation of funds in Toronto Water's Approved 2018 Capital Budget and 2019-2027 Capital Plan in the amount of $1.808 million from projects that have been awarded under budget or delayed to those requiring additional funding in the same amount as presented in Schedule A (Part D) to the report (May 11, 2018) from the General Manager, Toronto Water, with a zero Budget impact.

This report requests City Council's authority to amend Toronto Water's Approved 2018 Capital Budget and 2019-2027 Capital Plan by adjusting project costs and cash flows contained within the Budget and Plan, respectively, to align the 2018 Capital Budget with changes made to the 2017 Capital Budget at year end. Additional reallocations to project cashflows and project costs are requested where recent project bids exceed the current approved cashflow. These reallocations will allow Toronto Water to continue to deliver projects within its capital plan. The adjustments will have a zero dollar impact on the 2018 Capital Budget and 2019-2027 Capital Budget and Plan and will align the budget and plan with Toronto Water's capital project delivery schedule and program requirements.

The Executive Committee recommends that:

1.  City Council authorize the reallocation of funds within Transportation Services' Approved 2018 Capital Budget in the amount of $1,400,000, for funding of projects, as presented in Attachment 1 to the report (May 11, 2018) from the General Manager, Transportation Services, with a zero budget impact.

2.  City Council amend the 2018-2027 Capital Budget and Plan for Transportation Services by converting future year estimates for the York Street Tunnel capital project and approving total project costs of $1,675,244 and cash flow commitments of $1,675,244 in 2019, fully funded by debt.

This report requests City Council's authority to amend Transportation Services' Approved 2018 Capital Budget and 2019-2027 Capital Plan by reallocating cash flows within the 2018 Budget and converting future year estimates to cash flow commitments within the 2019 Plan.  These adjustments will align program requirements and project delivery schedules resulting in improved spending rates.

The adjustments will have a zero dollar impact on Transportation Services' 2018 Capital Budget and 2019-2027 Plan.

The Executive Committee recommends that:

1.  City Council approve funding in an amount not to exceed $25,000 plus tax for Ms. Davies' retainer.

2.  City Council increase the City Council Approved 2018 Police Services Board Operating Budget by $0.025 million on a one-time basis, funded from the Tax Rate Stabilization Reserve (XQ0703), from $2.809 million gross to $2.834 million gross, to support the Working Group appointed by the Board to provide legal and community perspectives for the Independent External Review with respect to Police Service Missing Persons Investigations.

The purpose of this report is to request that the Budget Committee approve funding in an amount not to exceed $25,000 plus tax for Ms. Davies' retainer and to advise the Budget Committee that it is anticipated that following its June 21, 2018 meeting the Toronto Police Services Board ('the Board') will forward a further recommendation seeking City funding for an Independent External Review.

The Executive Committee recommends that:

1.  City Council approve a 2018 cash flow transfer of $1.34 million to the Enterprise Business Intelligence (E.B.I.) project to offset the 2016 unspent carry forward of $1.34 million (M) that is required in 2018 to complete the Enterprise Business Intelligence project, from the following 2018 cash flow sources:

a.  $750,000 from the Conducted Energy Weapon project;

b.  $94,000 from the Radio Replacement project; and

c.  $500,000 from the Parking Handheld Administrative Penalty System project.

2.  City Council approve the advancement of $3.49 million in 2019 cash flow to 2018 for the Peer to Peer site project, funded by the deferral of the following 2018 cash flows:

a.  $2.6 million from Debt and $797,000 from Development Charges from the 54/55 Amalgamation project; and

b.  $100,000 from the State of Good Repair project.

3.  City Council approve the advancement of 2020 cash flow to 2018 in the amount of $200,000 for 32 Division project (part of facility realignment) funded by the deferral of the 2018 cash flow for the same amount from 54/55 Amalgamation project.

The purpose of this report is to provide the Budget Committee with the Toronto Police Service’s 2018 capital budget variance report for the period ending March 31, 2018

The Executive Committee recommends that:

1.  City Council approve increasing the Toronto Transit Commission conventional service 2018 approved complement of 14,423 by 84 positions to support and deliver capacity improvement initiatives, resulting in an amended 2018 approved complement of 14,507.

At its meeting on Tuesday, May 8, 2018 the Toronto Transit Commission Board considered the attached report titled "Capacity Improvements on Bus and Subway Services". 

The Board adopted the recommendations in the staff report, as follows:

"It is recommended that the Board:

1.  Approve the following four capacity improvements to be implemented in the fall of 2018, starting in September:

a.  improve service reliability on Line 1
b.  relieve peak crowding on 20 bus routes
c.  relieve off-peak crowding on 14 bus routes
d.  implement 7 new express services in the peak periods on a trial basis.

2.  Direct Toronto Transit Commission staff to include the required costs to annualize this service in the 2019 Toronto Transit Commission Operating Budget, currently estimated at $10.5 million gross with an $8.5 million net impact on subsidy after accounting for $2 million in incremental passenger revenue.

3.  Increase the Toronto Transit Commission conventional service 2018 approved complement of 14,423 by 84 positions to support and deliver capacity improvement initiatives, resulting in an amended 2018 approved complement of 14,507.

4.  Forward this report to City Budget Committee, City of Toronto's Planning and Transportation Services, Financial Services departments and Metrolinx."

The Board also adopted the following Motion:

i)  That the Chief Executive Officer be directed to include in the Toronto Transit Commission's 2019 budget submission one additional gap train on Line 1 in both the a.m. and p.m. peak periods.

The foregoing recommendation is submitted for City Council approval through the Budget Committee.

The Executive Committee recommends that:

1.  City Council:

a.  approve a five-year rental agreement with Royal Agricultural Winter Fair for the 2018-2022 Royal Fair under the terms and conditions of the standard licence agreement for the Enercare Centre and specific terms outlined in Appendix A to the report (May 16, 2018) from the Chief Executive Officer, Exhibition Place and such other terms and conditions as satisfactory to the Chief Executive Officer, Exhibition Place and the City Solicitor;

b.  approve an initial five-year lease agreement term with Royal Agricultural Winter Fair, commencing from January 1, 2018 and ending on December 31, 2022, with an option right to the Royal Fair of a renewal/extension of five (5) years for use of office space in the Coliseum Building provided that the Royal Fair has entered into a licence agreement with the Board to continue operating the Fair during the extended term on the terms and conditions outlined in Appendix D to the report (May 16, 2018) from the Chief Executive Officer, Exhibition Place, and such other terms and conditions as may be satisfactory to the relevant City of Toronto authorities as required and by the Chief Executive Officer, Exhibition Place and in a form acceptable to the City Solicitor.

2.  City Council direct that the City's support for the Royal Agricultural Winter Fair, currently $969,110.00, be paid to Exhibition Place, starting in 2019 and for future years, for specific application as a subsidy to the Board of Governors of Exhibition Place towards the market rent costs for the licenced space used for the annual Fair.

At its meeting of May 31, 2018, the Board of Governors of Exhibition Place considered the report (May 16, 2018) from the Chief Executive Officer, Exhibition Place on Multi-Year Agreement with Royal Agricultural Winter Fair and Use of Office Space.

The Board of Governors of Exhibition Place:

a.  Approved a five-year rental agreement with Royal Agricultural Winter Fair for the 2018-2022 Royal Fair under the terms and conditions of the standard licence agreement for the Enercare Centre and specific terms outlined in Appendix A to the report (May 16, 2018) from the Chief Executive Officer, Exhibition Place and such other terms and conditions as satisfactory to the Chief Executive Officer, Exhibition Place and the City Solicitor. 

b.  Approved an initial five-year lease agreement term with Royal Agricultural Winter Fair, commencing from January 1, 2018 and ending on December 31, 2022, with an option right to the Royal Fair of a renewal/extension of five (5) years for use of office space in the Coliseum Building provided that the Royal Fair has entered into a licence agreement with the Board to continue operating the Fair during the extended term on the terms and conditions outlined in Appendix D to the report (May 16, 2018) from the Chief Executive Officer, Exhibition Place, and such other terms and conditions as may be satisfactory to the relevant City of Toronto authorities as required and by the Chief Executive Officer, Exhibition Place and in a form acceptable to the City Solicitor.

The Executive Committee recommends that:

1.  City Council approve the CreateTO Procedures By-law.

At its meeting of May 17, 2018, the Board of Directors of Create TO considered the report (May 3,2018) from the Interim City Manager and the City Clerk on CreateTO Procedures By-law.

The Board of Directors of CreateTO:

1. Adopted the CreateTO Procedures By-law in Attachment 1 to the report (May 3, 2018) from the Interim City Manager and the City Clerk. 

The Executive Committee recommends that:

1.  City Council approve the Toronto Investment Board Procedures By-law.

At its meeting of May 31, 2018, the Toronto Investment Board considered the report (May 11, 2018) from the City Clerk and the Interim City Manager on Toronto Investment Board Procedures By-law.

The Toronto Investment Board:

1.  Adopted the Toronto Investment Board Procedures By-law in Attachment 1 to the report (May 11, 2018) from the City Clerk and the Interim City Manager.

The Executive Committee recommends that:  

1.  City Council receive the End of Year 2017 Occupational Health and Safety Report for information.

At its meeting of April 27, 2018, the Employee and Labour Relations Committee considered the report (April 3, 2018) from the Executive Director, Human Resources on Occupational Health and Safety Report - End of Year 2017.

The Executive Committee received the report (May 3, 2018) from the Chair, Toronto Police Services Board for information.

The purpose of this report is to provide the Executive Committee with the Toronto Police Service's ("Service") 2017 Annual Hate/Bias Crime Statistical Report.

The Executive Committee recommends that:

1.  City Council increase the Toronto Public Health 2018 Approved Operating Budget by $237.4 thousand gross, $0 net, and four temporary positions, with an annualized impact of $48.3 thousand gross and $0 net in 2019, to reflect 100 percent one-time provincial funding for harm reduction at the supervised injection service at 277 Victoria Street.

I am writing to recommend that City Council make adjustments to the 2018 budget to permit acceptance of $285,700 in additional one-time 100 percent provincial funding for the 2018-19 funding year for additional staffing and supplies for Toronto Public Health's Supervised Injection Service (SIS) at 277 Victoria Street.

Toronto continues to be in the midst of an opioid poisoning emergency. Rates of fatal opioid poisoning and emergency room visits related to opioid poisoning are increasing.

In March 2017, the Board of Health endorsed the Toronto Overdose Action Plan, which provides a comprehensive set of actions to prevent and respond to overdoses, targeted to all levels of government. The Medical Officer of Health and Toronto Public Health staff have worked with other City divisions and community and institutional partners to implement the Action Plan recommendations.  

While considerable work has been done, the situation remains urgent, and more must be done. Toronto Public Health remains committed to working with our partners to scale up our response to this public health crisis in our community and enable service providers to implement actions, as recommended in the Action Plan. This funding will enable Toronto Public Health to hire four temporary outreach workers to enhance harm reduction outreach services in Toronto with an initial focus around the Supervised Injection Service and the Downtown East.

The letter from the Ministry of Health and Long-Term for this one-time 100 percent provincial funding enhancement is attached as Appendix 1.

Announcements

The Chair advised that the Executive Committee gratefully acknowledges it is meeting on the traditional territory of the Mississaugas of New Credit First Nation, the Haudenasaunee, the Huron-Wendat and home to many diverse Indigenous peoples.