Agenda

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Declarations of Interest under the Municipal Conflict of Interest Act

Confirmation of Minutes - June 22, 2020

Speakers/Presentations - The speakers list will be posted online at 8:30 a.m. on July 21, 2020.

Communications/Reports

The General Manager, Transportation Services recommends that:

1.  City Council authorize the implementation of Reserved Bus Lanes on the Eglinton East corridor, in the following sections:

a.  Eglinton Avenue East from Brimley Road to Cedar Drive;

b.  Kingston Road from Eglinton Avenue East to Morningside Avenue; and

c.  Morningside Avenue from Kingston Road to Ellesmere Road.

2.  City Council enact the amendments to traffic and parking regulations associated with Recommendation 1 above, and as described in Attachment 1 - Amendments to Traffic and Parking Regulations.

The report seeks Council authority to install approximately 8.5 kilometres of priority bus lanes on Eglinton Avenue East, Kingston Road, and Morningside Avenue - along the same alignment as the proposed Eglinton East Light Rail Transit.

Work commenced in 2018 on Toronto Transit Commission's 5-Year Service Plan and 10-Year Outlook in collaboration with Transportation Services and City Planning to examine ways to provide more priority to surface transit routes throughout the City of Toronto.  In December 2019, the Toronto Transit Commission Board approved the Toronto Transit Commission's 5-Year Service Plan and 10-Year Outlook (the Plan) which identified service improvements to public transit in the City of Toronto in 2020-2024 and beyond. The Plan identified five candidate corridors and the Toronto Transit Commission Board identified a sixth for consideration:

- Eglinton East corridor, Kennedy Station to University of Toronto Scarborough campus, along Eglinton Avenue East, Kingston Road, and Morningside Avenue;

- Jane Street, between Eglinton Avenue West and Steeles Avenue West;

- Dufferin Street, between Wilson Avenue and the Dufferin Gate Loop;

- Finch Avenue East, between Yonge Street and McCowan Road;

- Steeles Avenue West, between Pioneer Village Station and Yonge Street; and

- Lawrence Avenue East.
 

Reliable transit service plays a vital role in keeping our City moving. As Toronto starts to recover from COVID-19, and businesses reopen, motor vehicle traffic volume is likely to increase as people with access to personal vehicles seek to maintain physical distance from others on their journeys. It is anticipated that increased motor vehicle volumes will impact surface transit operations. Surface transit must remain an attractive mode of travel to support economic recovery, environmental sustainability, efficient mobility, and social vibrancy. Implementing surface transit priority measures on the subject corridors improves access and mobility for city residents by providing fast and reliable connections to the city-wide transit network of subways, other bus routes, and GO Transit stations.

Working as an integrated team, staff in Transportation Services, City Planning and the Toronto Transit Commission undertook a preliminary review of the five corridors identified in the Toronto Transit Commission's 5-Year Service Plan and 10-Year Outlook to determine implementation priority, with a focus on which could be delivered quickly to deliver benefits to transit users and transit operations. These corridors represent a subset of over 100 corridors evaluated by the integrated City/Toronto Transit Commission team to identify the most promising candidate roadway segments for prioritizing surface transit city-wide. The candidate list of roadway segments evaluated by the team was informed in part by the surface transit priority corridors established by the Council-approved Official Plan Amendment for Transportation (PH13.3). The corridors identified under Toronto Transit Commission's 5-Year Service Plan and 10-Year Outlook represent the first phase of a city-wide surface transit implementation plan emerging from the Surface Transit Network Implementation Study, expected to report in the fourth quarter, 2020.

Toronto Transit Commission's 5-Year Service Plan and 10-Year Outlook provided a five-year horizon for implementation of surface transit priority on the identified corridors. The Toronto Transit Commission Board adopted a Member Motion at its June 17, 2020 meeting requesting accelerated installation of surface transit priority measures on the corridors.

Eglinton East emerged as the top candidate for the accelerated installation of priority bus lanes based on an assessment of a number of factors including improvement to transit reliability, available right-of-way and considerations for transportation equity and inclusion of Neighbourhood Improvement Areas. Implementation of the priority bus lane on the Eglinton East corridor is expected in Fall 2020.

Jane Street was the next candidate and following further development work staff will report later this year with an expectation that Jane Street will move to implementation in Spring 2021. The four remaining corridors will be prioritized through the emerging Surface Transit Network Implementation Study, expected to report in the fourth quarter of 2020.

The estimated capital funding required to implement the Eglinton East priority bus lanes, recommended in this report, is approximately $8,000,000. The Toronto Transit Commission would fund all costs associated with the implementation.  Funding for this work is available in the approved 2020 - 2029 Capital Budget and Plan for Transportation Services and will be recovered from the Toronto Transit Commission.

Funding required for the remaining five priority bus lanes identified in the Toronto Transit Commission's 5-Year Service Plan and 10-Year Outlook, all of which will be recovered from Toronto Transit Commission, will be included for consideration as part of future Capital Budget submissions for Transportation Services. Funding required for annual maintenance costs will be included for consideration as part of future Operating Budget submissions for Transportation Services.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The Toronto Transit Commission Board recommends that:

1.  City Council request that the City of Toronto work with local Scarborough agencies to identify and employ local youth from the Neighbourhood Improvement Areas to paint the required lines for the Bus Lane Implementation Plan along the Eglinton East corridor.

 
2.  City Council request the City of Toronto Office of Recovery and Restart advocate for provincial and federal funding to accelerate implementation of the Bus Lane Implementation Plan, in conjunction with the work being done by Toronto Transit Commission for emergency relief funding with the federal and provincial governments.

At its meeting on July 14, 2020, the Toronto Transit Commission Board considered the attached report titled "Bus Lane Implementation Plan".

The Board adopted the recommendations in the report as follows:

It is recommended that the Toronto Transit Commission Board:

1.  Approve the recommended prioritization of the five priority bus corridors
 

a.  Priority A - Eglinton East
 

b.  Priority B - Jane Street
 

c.  Priority C - Dufferin Street, Finch East and Steeles Avenue West

2.  Approve the creation of a new capital project entitled Bus Lane Implementation at a cost of $7.628 million with funding to be reallocated from the following capital projects:
 

a.  $6.98 million from the Toronto Transit Commission's 2020 Capital Budget Subway Asbestos Removal Program (IO 6068);
 

b.  $400,000 from the Construct BRT Lines on the Avenues – EA capital project
(IO 6362); and

c.  $250,000 from the Opportunity to Improve Transit Services capital project. (IO6713)
 

3.  Direct staff to report back in December 2020 on results of community consultations, a detailed design, implementation plan and capital costs for Jane Street.
 

4.  Direct staff to forward this report to the City of Toronto and specifically, the City Clerk, the General Manager of Transportation Services Division and the Chief Planner and Executive Director, City Planning.

Decision Advice and Other Information:

The Toronto Transit Commission Board also adopted the following member motions:

1. That the Toronto Transit Commission request that the City of Toronto work with local Scarborough agencies to identify and employ local youth from the Neighbourhood Improvement Areas to paint the required lines for the Bus Lane Implementation Plan along the Eglinton East corridor.

 
2.  That the Toronto Transit Commission Board request the City of Toronto Office of Recovery and Restart to advocate for provincial and federal funding to accelerate implementation of the Bus Lane Implementation Plan, in conjunction with the work being done by Toronto Transit Commission for emergency relief funding with the federal and provincial governments.
 

3.  That the Toronto Transit Commission Board request the Chief Executive Officer to report back on the operating cost impacts of service reliability delays by route for all five bus priority corridors for the Board's September 24, 2020 meeting.
 

4.  That the Toronto Transit Commission Board request the Chief Executive Officer to work in partnership with the General Manager, Transportation Services, City of Toronto to accelerate transit priority measures on all five bus priority corridors and integrate this direction into the Surface Transit Network Implementation Study.

5.  That the Toronto Transit Commission Board request the Chief Executive Officer to continue acceleration of transit priority measures on the four remaining transit priority corridors (Jane, Steeles West, Finch East and Dufferin) and target installation for Priority B and Priority C corridors in 2021 with a report back on status in the fourth quarter of 2020.
 

6.  That the Sheppard Avenue East study for bus enhancements, including the possibility of dedicated lanes between the Sheppard Subway and Agincourt GO Station (requested by the Board in its February 2020 meeting), be brought into alignment with the projects referred to as Priority C and reported back at the same time.

The recommendations of the Toronto Transit Commission Board as set out above are submitted for City Council approval through the Executive Committee.

The City Manager recommends that:

1.  City Council approve the terms and conditions summarized in Confidential Attachment 1 to this report, and City Council authorize the City Manager to enter into an Agreement with the Federation of Canadian Municipalities and the Toronto Atmospheric Fund for a $40 million contribution to the Toronto Atmospheric Fund, as an endowment of $38 million and a $2 million operating grant, in accordance with these terms and such other terms and conditions as may be satisfactory to the City Manager, in a form satisfactory to the City Solicitor.

2.  City Council authorize the Chief Financial Officer and Treasurer to receive the $40 million from the Federation of Canadian Municipalities and transfer the funds to the Toronto Atmospheric Fund, in accordance with the Toronto Atmospheric Fund Act, 2005.

3.  City Council authorize the Toronto Atmospheric Fund to obtain a Line of Credit of up to $1.6 million secured by the federal endowment once the funds are received.

4.  Council approve the action of the Toronto Atmospheric Fund Board with respect to having borrowed up to $250,000 from the City endowment to cover start-up costs related to the federal endowment.

5.  City Council authorize the City Manager, in consultation with the Toronto Atmospheric Fund, to amend the Toronto Atmospheric Fund Relationship Framework to align with the Agreement in a form satisfactory to the City Solicitor. 

6.  City Council authorize the Toronto Atmospheric Fund to undertake financial commitments, liabilities and contractual obligations for up to six months beyond the 2018-2022 term of City Council, for which transactions are to be calculated as part of the City's debt and financial obligation limit under Subsection 11(8) of the Toronto Atmospheric Fund Act, 2005.

7.  City Council authorize the public release of Confidential Attachment 1 to this report once the Agreement is executed between the Federation of Canadian Municipalities, the Toronto Atmospheric Fund and the City of Toronto and the federal contribution has been received.

The City Manager is seeking City Council approval to execute an agreement between the City of Toronto, the Toronto Atmospheric Fund and the Federation of Canadian Municipalities for a $40 million contribution from the Government of Canada to Toronto Atmospheric Fund to support the Low Carbon Cities Canada project. Pending confirmation from the Government of Canada, the contribution via the Federation of Canadian Municipalities Green Municipal Fund is structured as a $38 million perpetual endowment and a $2 million operating grant.

The Toronto Atmospheric Fund Board of Directors approved the terms of the Agreement at its meeting on July 6, 2020. Under the Toronto Atmospheric Fund Act, 2005 and the draft Agreement, City Council is required to approve the terms of this agreement. This report seeks approval of the terms and conditions for the Agreement found in Confidential Attachment 1, and authority for the City Manager to resolve any outstanding issues and execute the Agreement on behalf of the City of Toronto.

In its March 2019 budget, the Government of Canada provided $350 million to Federation of Canadian Municipalities for a national urban climate action program. These funds include $183 million to establish  the Low Carbon Cities Canada initiative, which is a network of seven climate action centres – Toronto, Vancouver, Edmonton, Calgary, Ottawa, Montreal and Halifax– that will be modelled on Toronto Atmospheric Fund and promote local grants and initiatives. Toronto Atmospheric Fund, as an Low Carbon Cities Canada centre, will receive $40 million of the Low Carbon Cities Canada funding to enhance its capacity to accelerate low-carbon solutions in the Greater Toronto and Hamilton Area.

The federal $40 million contribution will bring Toronto Atmospheric Fund's asset value to approximately $90 million, including the City's initial 1992 endowment of $23 million, the 2017 endowment of $17 million from the Government of Ontario, and investment earnings. The Low Carbon Cities Canada Agreement builds on the current endowment model where Toronto Atmospheric Fund's annual operating costs are funded by the proceeds from investing the endowment funds. The terms align with Toronto Atmospheric Fund's accountability and obligations to City Council for the City and Provincial endowments, and provide for Federation of Canadian Municipalities governance over the federal endowment within Toronto Atmospheric Fund's existing frameworks outlined in the Toronto Atmospheric Fund Act, 2005, the City-Toronto Atmospheric Fund Relationship Framework and Toronto Atmospheric Fund's Statement of Investment Objectives and Principles.

Confidential Attachment 1 summarizes the terms of the Agreement. Through the Low Carbon Cities Canada Agreement, Federation of Canadian Municipalities confers to Toronto Atmospheric Fund the terms and conditions of their Agreement with the Government of Canada related to reporting, communication and performance standards. Ultimately, within the parameters of the Agreement, it entrusts the management of federal funds to the City-appointed Toronto Atmospheric Fund Board. The composition and governance structure of the Toronto Atmospheric Fund Board and its accountabilities to City Council remain unchanged, with the exception of Federation of Canadian Municipalities representation on Toronto Atmospheric Fund's Investment Committee.

The Low Carbon Cities Canada initiative aligns with and will advance the goals of the City's TransformTO Climate Strategy and strengthens the work of the Federation of Canadian Municipalities and the City of Toronto which together seek to build federal-municipal relationships.

Once the Low Carbon Cities Canada Agreement is executed, Toronto Atmospheric Fund will receive a $40 million contribution from the federal government through the Federation of Canadian Municipalities in one installment for a $38 million endowment and $2 million operating grant for programs in the City of Toronto and across the GTHA. The funds are anticipated to be received in Q4 2020 and will be invested in accordance with Toronto Atmospheric Fund’s Council-approved Statement of Investment Objectives and Principles.

The federal endowment will add to the City’s original endowment of $23 million and the $17 million provincial endowment, bringing Toronto Atmospheric Fund's assets to approximately $90 million. Toronto Atmospheric Fund's combined assets will continue to be under the custody of the City's Chief Financial Officer and Treasurer, with the management of Toronto Atmospheric Fund investments continuing to be approved by the Toronto Atmospheric Fund Board. Separate fund accounting will be used in order to track each fund and its proceeds as distinct assets, and Toronto Atmospheric Fund reports on grants and investments will specify the contributions from each of the three endowments.

Incremental eligible operating expenses (including program delivery, governance, staffing, and administration and business expenses) for the Low Carbon Cities Canada initiative will be funded from the $2 million operating grant and by the investment proceeds generated from the federal endowment. Any such corresponding incremental investment income and expenditure will also be referred to the City annual budget process for information.

Toronto Atmospheric Fund maintains separate Lines of Credit secured by each of the City and provincial endowments, which is used for financial flexibility (not leverage). This report seeks approval for a third, separate Lines of Credit secured by the federal endowment.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as identified in this Financial Impact section. 

The City Manager and Chief People Officer recommend that:   

1.  City Council direct that the Active Benefits Plan for Management/Non-union employees, Accountability Officers and Elected Officials, be amended as outlined in Attachment 1 to this report.

2. City Council approve the requirements to provide medical certificates for Management/Non-Union employees as outlined in Attachment 1 to this report.

3. City Council direct that the Pre-65 Retiree Benefit Plan for Management/Non-union employees and Accountability Officers, be amended, where applicable, for employees who retire on or after August 1, 2020, as outlined in Attachment 1 to this report.

The purpose of this report is to provide recommendations regarding the proposed changes to the benefits plan for Management/Non-union employees, Accountability Officers and Elected Officials.  The proposed changes outlined in this report arise from staff's review of the benefit plan changes, following the recently concluded collective bargaining with TCEU, Local 416 and CUPE, Local 79.

Benefit Plans – Health, Parental Leave and Float Day

In 2019, the City spent approximately $243.70 million on benefits (i.e., Health, Dental, Group Life Insurance and Long Term Disability) for employees and eligible retirees of the City of Toronto. Of that amount, the cost to provide health and dental coverage for Management/ Non-union employees, Accountability Officers and Elected Officials was approximately $25.50 Million. Benefit Plans are funded through divisional operating budgets.

The implementation of the recommended changes to the Active Benefit Plan for Management/Non-union employees, Accountability Officers and Elected Officials, as of the effective dates recommended in the chart below, will result in some incremental increased costs for Health & Dental benefits. However, this increased cost is more than offset by the significant savings of $2.3 million achieved through the changes in pregnancy/ parental leave top-up.

Incremental Additional Benefit Costs (in $ millions):

Incremental Benefit Cost Savings (in $millions):

Additional Item

In addition, the health changes will flow through to the Pre-65 Retiree Benefit Plan, for Management/Non-union employees and Accountability Officers who retire on or after the date of Council approval, and who are entitled to pre-65 retiree benefits as outlined in the City Policy. 

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The Chief Financial Officer and Treasurer and the City Clerk recommend that:

1. The Executive Committee receive this report for information.

This report is submitted for information purposes as required under Section 223 (1) of the City of Toronto Act, 2006. It provides an itemized statement on remuneration and expenses of Members of Council and of Council appointees to agencies, corporations and other bodies for the year ended December 31, 2019.

Information is obtained through submissions by the various entities and consolidated for the purposes of this report by Accounting Services.

There are no financial implications arising from this report.

The Chief Financial Officer and Treasurer has reviewed the report and agrees with the financial impact information.

The Deputy City Manager, Corporate Services and the Chief Financial Officer and Treasurer recommends that:

1.  City Council authorize the Deputy City Manager, Corporate Services, in consultation with the Chief Financial Officer and Treasurer, to negotiate and execute a non-competitive agreement with PayIt for a three year term, plus two one-year renewals at the option of the City, to develop and deliver a digital government platform for City services, on terms and conditions to the satisfaction of the Deputy City Manager, Corporate Services and as generally outlined in this report, and in a form satisfactory to the City Solicitor.

2.  City Council authorize the Deputy City Manager, Corporate Services, in consultation with the Chief Financial Officer and Treasurer to further negotiate and execute with PayIt, as part of the agreement contemplated in Recommendation 1, or in a further amending agreement, such other potential benefits for the City that may be achieved through commercial arrangements with PayIt, such as the co-development of innovative solutions to enable the scaling of this platform in the Canadian marketplace, as may be deemed appropriate in the opinion of the Deputy City Manager, Corporate Services, in consultation with the Chief Financial Officer and Treasurer. 

3.  City Council authorize user fees for online card payments using the PayIt system at 2.35 percent of the payment amount for online credit card transactions, and 1.5 percent of the payment amount for online debit card transactions, commencing with online card payments for property taxes, utilities and parking fines, and direct the Deputy City Manager, Corporate Services, and the Chief Financial Officer and Treasurer to work with PayIt to expand the permitted services for which online card payment user fees can be charged, and authorize the necessary amendments to City of Toronto Municipal Code, Chapter 441, Fees and Charges and any other necessary Municipal Code Chapters as may be required.  

4.  City Council delegate authority to the Chief Financial Officer and Treasurer to establish polices and guidelines regarding payment methods for fees and charges to be accepted by the City, including ensuring such policies will always include a free payment method option for customers, as well as to reduce the burden of credit cards where possible, and to amend City of Toronto Municipal Code Chapter 441, Fees and Charges, and any other relevant Code Chapter, to delete the current acceptable payment methods of fees and charges.

For the City of Toronto, it is clear that our current state and approach towards modernization requires critical acceleration and new innovative partnerships.  The City has been working on a customer experience transformation for the past few years, however we are now required to work at unprecedented speed and scale, with greater impact and outcomes.  Reimagining our service and facilities, the way we equitably interact with residents, businesses, and visitors, and our shift to digital is a prime focus. 

Our digital government vision, is a connected and equitable Toronto with an affordable, accessible and resilient digital environment as a public service for all.  Specifically:

- Digital service delivery to the public to improve the overall service experience;

- Digital equity and inclusion to bridge the digital divide and access to service for underserved communities;

- Digital resilience and agility to assure service continuity and adapt to shocks; and

- Digital partnerships and revenue-generation to drive financial sustainability and economic growth.

Now, more than ever, the need to scale delivery of digital government services and engagement is a focus. Public health standards, fiscal realities and customer expectations and increased comfort level for fully digital experiences require the City to accelerate at an unprecedented rate. "Business as usual" is not an option.  The pandemic has pushed digital services to the forefront. Toronto residents, businesses and visitors want simple, convenient, and connected service from the City, similar to the way they interact with their banks. The City must take steps to transform our services to meet public expectations on digital experiences, leveraging technology and human-centered design, to create relationships built on trust and confidence.

Driving a digital government supports some key priorities of the City’s Corporate Strategic Plan, "Financial Sustainability" and "Well Run City".  The City is committed to work and partner with stakeholders to ensure value and affordability for taxpayers, adequately fund municipal services and infrastructure.  One step towards this goal is implementation of digital government platforms that accelerates the City's financial transformation, and offer more convenient payment options for customers, in a seamless and centralized approach. The City has an opportunity to leverage the industry for innovative partnerships, in particular those who have expressed openness in exploring potential for co-design and innovation with the City.

This report seeks City Council authority to enter into a non-competitive contract with PayIt that will transform how the public interact with the City.  The Toronto digital government platform approach will drive consistent City-wide digital customer service experience.   In the case of PayIt, both the City and PayIt recognize that the innovative partnership co-design model means the City's efforts will contribute to the quality of continuous service improvements for the City and potentially beyond. Staff is seeking authority so that negotiations with PayIt can include consideration of other valuable potential benefits to the City through the commercial arrangements with PayIt, including the co-development of innovative solutions to enable the scaling of digital platforms in the Canadian marketplace.

The following outcomes will be key benefits to the City:

1.  Improved Customer Experience - Provide residents, businesses and visitors with a unified digital experience that brings services and information to the touch of their hand, flattening divisional silos and presenting services in a way that is intuitive, personalized and simplified – one identity and account, one digital wallet, one contact for notifications and e-bills for example (see Attachment 1, City's Digital Customer Experience Vision). 

 
2.  Payment Centralization and More Payment Options – Financial transformation means providing more digital payment options to customers in a standardized way across the city, such as credit, debit, and Electronic Fund Transfer and e-chequing, while phasing out more costly forms of payment, respecting access and equity concerns.  A centralized payment and billing platform would replace the public-facing portion of the 22 systems that exist today and automate reporting and reconciliation across the City.

 
3.  Risk and Reward - The proposed partnership with PayIt is attractive because they are compensated based on the City's digital adoption rate for payment.  PayIt would front the capital investment and are rewarded based on shifting volumes to digital payment, meaning incentives are aligned and the City realizes significant reductions in operating costs.

The partnership with PayIt lays the foundation for digital transformation on an unprecedented scale with meaningful and measureable improvements to the customer experience and financial processes enabled by leveraging and integrating modern technology and new ways of working to rapidly co-design and innovate.

Through a partnership with PayIt, Toronto will augment its digital platform to enable residents, businesses, and visitors to interact with the City, simply and conveniently, for services and information through a more personalized digital experience. Features include a personalized account, digital wallet, notifications, e-billing, increased payment options and ability to upload documents.  Not only will this improve the current fragmented experience people have navigating City services from one division to another, but it will help drive digital adoption, operating efficiencies and help improve the City's brand and customer service image.   

The City is taking an agile approach to building out this partnership beginning with five key services in a way that is cost neutral to the City and sets the stage for future growth and transformation.  PayIt fees were negotiated to ensure the City will be in a position to realize efficiencies above and beyond fees to PayIt.  The objective is to break-even in year 1 with the launch of services for property tax, utility and parking fines, City Planning development and Toronto Building fees. Most of the savings will come from current fees the City pays to cover online credit card fees plus some operational efficiencies relating to greater automation for intake, data entry and payments processing.  As the partnership evolves and the City gains experience, staff will be in a position to report back through the regular financial reporting process on updates and savings targets.

While the greatest benefit is to the experience residents, businesses and visitors have interacting with the City, this partnership will drive savings and cost avoidance in the many millions of dollars, specifically from:

- Savings resulting from increased automation of intake and reduction of mail outs and phone calls. Taking average counter costs of about $10.00 in Revenue Services compared to $3.00 for intake through the PayIt platform.

- Savings resulting from the standardization and centralization of revenue collection, billing and reconciliation. Reducing number of payment processes, touchpoint and system payment components, down from the 22 existing systems, over time.

- Savings resulting from the elimination of credit card fees borne by the City, as recommended by the Auditor General in Item 2017.AU8.7 (http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2017.AU8.7)

- Capital cost avoidance for major technology implementation plus ongoing sustainment costs for licences and reduced PCI compliance costs.  Initiatives of similar scope and size have cost the City millions.

- Additional 'upside' from monetizing the City's brand and product development, for example in the form of a ceiling once a threshold has been achieved.

 
Based on industry information on adoption rates for similar transactions, modelling and forecasting conducted by staff project a total estimated value of the contract identified in this report as $13.6 million reflecting three full years for the contract (or 36 months). The value of the contract is variable to some extent because PayIt is compensated on a per transaction basis based on digital adoption of services and payments made through their platform. There is no cost to the City if there is no adoption by the customer. There is a significant opportunity for an integrated digital government platform to be impactful in Toronto. As an example to demonstrate scale, recent historical volumes of services identified as early opportunities to offer on the PayIt platform are as follows: 4.3 million property tax payments, 1.6 million utilities payments, 1.6 million parking ticket payments, 4,669 City Planning application payments, and 51,043 Toronto Building permit payments (all approximate annual volumes). For context, $5 million in annual PayIt fees for over $1.56 billion in collected revenues represents a .0032 percent collection rate.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The Chief Financial Officer and Treasurer recommends that:

1.  City Council approve additional carry forward funding of $440.9 million from unspent capital projects funding as detailed in Appendices 1a, 1b and 2, in order to continue work on previously approved capital projects in 2020 and beyond, and that the 2020 Approved Capital Budget for respective City Programs and Agencies be adjusted accordingly with no incremental impact on debt.

2.  City Council approve in-year budget adjustments to the 2019 Approved Capital Budget as detailed in Appendices 3, 4, 5 and 6 for Parks, Forestry and Recreation, Transportation Services, Toronto Public Library, Toronto Transit Commission respectively. There is no incremental impact on 2020 debt funding as a result of these adjustments.

3.  City Council approve in-year budget adjustments to the 2020-2029 Approved Capital Budget and Plan as detailed in Appendix 7 for Shelter, Support and Housing Administration. There is no incremental impact on 2020 debt funding as a result of this adjustment.

During the 2020 budget process, City Council approved $898.8 million of previously approved unspent capital projects to be carried forward to 2020 to continue the project delivery in 2020. The approved carry forward amount was based on the initial estimate prior to 2019 year-end closing. With the 2019 fiscal year closed in March 2020, City Programs and Agencies have finalized the 2019 actual project spending as well as the total carry forward request. As a result, the purpose of this report is to seek Council's approval for an additional $440.9 million carry-forward funding, of which $400.3 million to be carried to 2020 and $40.6 million to 2021 and 2022, to enable staff to complete 2019 and prior year approved capital projects.

With the additional carry forward request, the total 2019 and prior years capital carry forward funding will be $1.340 billion, and the total Council approved 2020 Capital Budget including previously approved carry forward amount will be $4.866 billion.

The recommended carry forward funding adjustments have no impact on the City's approved debt for 2020.

This report also brings forward in-year Capital Budget Adjustment requests for 2019 and future years. Programs and Agencies were not able to bring forward these adjustment requests earlier due to changes in scheduled committee meeting dates as a result of the COVID-19 emergency. Approval of these requests are needed as City Council's authority is required to continue with the project delivery. The details can be found in Appendix 3 to 7.

In addition to the carry forward amount previously approved by the City Council, an additional $440.9 million carry-forward funding is being recommended in this report. This carry forward will have no incremental impact on 2020 debt funding.

Of the $440.9 million recommended carry forward funding adjustments recommended in this report, $400.3 million will be added to the 2020 Capital Budget and $40.6 million will be added to 2021 and 2022 Capital Plan.

The additional carry forward funding will increase the 2020 Approved Capital Budget from $4.466 billion to $4.866 billion.

The Chief Financial Officer and Treasurer recommends that:

1.  City Council approve in-year budget adjustments to the 2020-2029 Approved Capital Budget and Plan as detailed in Appendix 2 that result in no incremental impact on debt financing.

The purpose of this report is to provide City Council with the City of Toronto capital spending for the five month period ended May 31, 2020, as well as projected expenditures to December 31, 2020. Furthermore, this report seeks Council's approval for in-year budget adjustments to the 2020 Approved Capital Budget and Plan that have no impact on 2020 approved debt.

As illustrated in Table 1 below, City's 2020 capital expenditure was $1.032 billion or 22.3 percent of the 2020 capital budget of $4.635 billion for the period ended May 31, 2020 and is projecting to expend $3.844 billion or 82.9 percent by December 31, 2020

Table 1 - Capital Variance Summary

*Note: Includes 2019 carry forward funding and 2020 in-year adjustments

The Capital spending pattern for the first quarter typically ranges between 5.4 percent and 13.1 percent of the total Council Approved Capital Budget compared to 22.3 percent spend as of five months. Total City projected spend of 82.9percent by year-end is comprised of a Tax Supported Programs spending rate of 82.8 percent and a Rate Supported Programs spending rate of 83.3 percent.

Projected underspending by year-end totals $791 million or 17.1 percent of the 2020 Capital Budget.  Approximately half of the projected year-end variance reflects underspending attributed to COVID-19 impacts.

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.

The capital expenditures in the first five months of 2020 total $1,032 billion and year-end expenditures are anticipated to increase to $3,844 billion or 82.9 percent of the total 2020 Approved Capital budget. 19 of the 36 City Programs and Agencies have projected year-end spending rate in excess of 70 percent.

Appendix 1 summarizes the spending in the first five months and year-end projected spending rate by City Program and Agency.

The Chief Financial Officer and Treasurer recommends that:

1.  City Council approve the budget adjustments and any associated complement changes detailed in Appendix D1 and Appendix D2 to amend the 2020 Approved Operating Budget, such adjustments to have no impact on the 2020 Approved Net Operating Budget of the City.

The purpose of this report is to provide City Council with the Operating Variance for the five months ended May 31, 2020 as well as projections to year-end. This report also requests City Council's approval for amendments to the 2020 Approved Operating Budget that have no impact on the City's 2020 Approved Net Operating Budget.

Since mid-March, the City of Toronto, consistent with other major Canadian and Greater Toronto and Hamilton Area municipalities has been experiencing significant financial impacts, both in the form of added costs and revenue losses as a direct result of the COVID-19 pandemic.

COVID-19 related financial impacts are anticipated to total $1.9 billion by year-end for the City's Tax Supported Programs, prior to offsets achieved through a series of implemented mitigation strategies that focus on spending and workforce restraints, reducing the year-end shortfall to a projected $1.350 billion. 

- These items are expected to collectively generate $547.8 million in total offset by year-end, comprised of $513.7 million in savings from workforce restraints, spending constraints and cost avoidance; $34.1 million in added offsets available from budget variance; and include 9,980 staff that had been placed on emergency leave within City programs and approximately 2,000 added staffing impacts estimated within City agencies.

The following table summarizes the anticipated year-end COVID-19 financial Impacts, projected offset from mitigations strategies and the resulting financial position of the City's Tax Supported Operations as of May 31, 2020 and the projection at year-end:

Table 1 - Tax Supported Operating Variance Summary

Year-to-Date and Year-End Spending Results:

As noted in Table 1 above, for the five months ended May 31, 2020 Tax Supported Operations experienced an unfavourable net variance of $211.1 million or 5.0 percent of planned expenditures. This is mainly driven by COVID-19 related cost and revenue impacts experienced beginning from mid-March onwards. The impact on the year-to-date results are reflected in the following areas:

- Toronto Transit Commission - Conventional Service ($190.0 million unfavourable) primarily due to significant loss of ridership revenue from the impact of COVID-19. Ridership losses peaked at 86 percent below budget in late April and are currently projected to be 80 percent below budget through the summer. This was partially offset by the implementation of cost containment strategies and matching service capacity to demand.

- Shelter Support and Housing Administration ($11.5 million unfavourable) primarily due to unplanned COVID-19 related expenditures related to new physical distancing measures implemented in the City's shelter system, as well as underachieved revenues in Hostels and the Social Housing Service.

- Court Services ($9.4 million unfavourable) due to underachieved revenues resulting from lower than plan ticket issuance and partial suspension of collection activities due to COVID-19.

For year-end, the City is projecting $1.9 billion in COVID-19 related financial impacts, reduced by $547.8 million from offset generated through $513.7 million in mitigation strategies/cost avoidance and $34.1 million in offsets from budget variance for a net unfavourable variance of $1.350 billion or 11.6 percent of the 2020 Gross Operating Budget, adjusted for Toronto Building. The unfavourable variance is primarily driven by COVID-19 financial impacts, resulting in increased emergency social support costs such as Shelter, Seniors Services and Long Term Care, as well as lost revenue in City Services such as Toronto Transit Commission, the Toronto Zoo, Exhibition Place, and Corporate revenues such as Municipal Land Transfer Tax and Municipal Accommodation Tax.

As noted, the projected year-end pressure resulting from COVID-19 related financial impacts of $1.9 billion has been lessened to $1.350 billion through a series of mitigation strategies and other offsets, these include:

$513.7 million in projected savings generated through mitigation strategies and cost avoidance as detailed below:

- Workforce restraints including redeployment of staff to critical and essential service areas; implementing emergency and seasonal / part-time staff layoffs; the implementation of a hiring slowdown; and savings generated from labour negotiations.

--Workforce restraints have resulted in 9,980 City staff being placed on emergency leave, some of which have since returned back from leave, along with approximately 2,000 added staffing impacts estimated within City agencies.

- Spending restraints such as matching transit service capacity to demand; reducing discretionary spending; reviewing all services for criticality (prioritize critical, essential and priority services).

- Cost avoidance arising from expenditure management and tracking and forecasting COVID-19 related savings.
 

An additional $34.1 million in offsets are available from budget variance experienced within Municipal Land Transfer Tax revenues from January 1 to March 31 that will be used to reduce COVID-19 related Municipal Land Transfer Tax financial impacts.

Based on these initiatives, the City has achieved $188.4 million in offsets within its Tax-Supported programs as of June 28, 2020 and expects to generate a total of $547.8 million in offset by year-end.

- It is important to note that the projected savings generated through mitigation strategies and cost avoidance are in part based on the City's experience during the pandemic and may either increase or decrease as the emergency situation betters or worsens, consistent with the rate that recovery and restart initiatives begin across the City.
 

The City Manager and Chief Financial Officer and Treasurer continue to engage with their Federal and Provincial counterparts to obtain funding support for municipalities to offset projected deficits resulting from COVID-19 related financial impacts.

- The City Manager will be reporting to Council in September on the results of these discussion, noting any full or partial offsets to the projected year-end deficit.

- The City Manager will also be reporting to the July 28 and 29 City Council meeting, providing details on experienced and anticipated COVID-19 related financial impacts along with further mitigation options that would need to be considered by Council during their meeting of September 2020, if municipalities continue to receive inadequate financial support from the Federal and Provincial governments.

Rate Supported Programs:

Rate Supported Programs reported an unfavourable year-to-date variance of $8.8 million. The unfavourable variance is attributed to lower than budgeted revenue primarily from Toronto Parking Authority. At year-end, an unfavourable projected variance is anticipated to be $100.9 million, again primarily driven by significantly lower revenues from Toronto Parking Authority.

Rate Supported Programs are funded entirely by the user fees that are used to pay for the services provided and the infrastructure to deliver them. Solid Waste Management Services and Toronto Water's respective year-end surpluses, if any, must be transferred to the Wastewater and Water Stabilization Reserves and Waste Management Reserve Fund, respectively, to finance capital investments and ongoing capital repairs and maintenance.

Table 2 - Rate Supported Operating Variance Summary

As of May 31, 2020 the City experienced an unfavourable variance of net revenues and expenses of $211.1 million. The City is projecting for December 31, 2020 an unfavourable variance of net revenues and expenditures of $1.350 billion.

Appendices A, B and C provide detailed summary of gross expenditures, revenue and net expenditures for the five month results and projections to year-end by Program and Agency, respectively. Appendix D details the recommended in-year budget adjustments that are fiscally neutral to the 2020 Approved Operating Budget.

The Chief Financial Officer and Treasurer recommends that:

1.  City Council approve the renewal of the following lines of credit guarantees and capital loan:

a. the line of credit guarantee issued by the City on behalf of Canadian Stage Company to its lender in the amount of $820,000 (inclusive of all interest payable by Canadian Stage Company) be renewed for a three-year period commencing on November 1, 2020 and ending October 31, 2023;

b. the line of credit guarantee issued by the City on behalf of Young People Theatre to its lender in the amount of $175,000 (inclusive of all interest payable by Young People Theatre) be renewed for a three-year period commencing on January 1, 2021 and ending December 31, 2023; and

c. the capital loan issued by the City on behalf of the Lakeshore Arena Corporation in the amount of $4,047,660 (interest payments only) be renewed for a one-year period commencing on November 1, 2020 and ending October 31, 2021.

This report provides an annual update on the City's loan and loan guarantee portfolios for the year ending in 2019.

The City currently guarantees three operating lines of credit and eight capital loan guarantees under Council approved policies for line of credit and loan guarantees for cultural and community-based organizations. In addition to the guarantees, the City currently has outstanding a total of seven direct loans: six to City agencies and corporations, plus one to an external organization. All loans and guarantees are in good standing as at the 2019 year end.

The effects of COVID-19 and related closure of many of the not-for-profit and City agency venues associated with these loans and guarantees has occurred in the current 2020 calendar year and are therefore beyond the scope of this report.  The City will continue to monitor the status of these loans and guarantees and bring forward any necessary actions for Council consideration that may arise from any future loan servicing deficiencies.

This report recommends extending lines of credit guarantees, set to expire later in 2020, with two not-for profit theatre groups for an additional three year term as well as extending the loan term for a City loan, also set to expire later in 2020, to a City services corporation for an additional one year term.  The subject lines of credit and loan are all currently in good standing.

A loan guarantee is considered to be a financial commitment of the City, and impacts the City's borrowing capacity and potentially its credit rating. However, there is no direct cost to the City for providing the guarantee unless the borrower defaults on its obligation and the City cannot recover any funds paid out under the guarantee.

As at December 31, 2019, there were a total of:

- 3 outstanding operating line of credit guarantees with a maximum exposure of $6.0 million (see Table 1);

- 6 outstanding capital loan guarantees in the amount of $38.2 million, plus one construction loan guarantee approved to a maximum of $30 million (see Table 2); and

- 6 direct city loans with an outstanding balance of $52.6 million (see Table 3).
 

As at 2019 year end, there are no loans in this portfolio in default or default settlement terms as shown in the following chart.

Total Value of Loans and Loan Guarantees

This report recommends extending the term of two line of credit guarantees for additional three year terms. These line of credit for Canadian Stage and Young Peoples Theatre have been operated in good standing by the two not for profit theatre groups and as such the guarantee renewals have been recommended. 

An interest only loan to the Lakeshore Arena Corporation set to expire in October of 2020, is also being recommended for renewal for a one year term.  This loan was anticipated to have been transferred into a related Infrastructure Ontario loan prior to October 2020 but circumstances described later in this report will prevent this from happening.  The loan is an interest only loan, all payments are up to date and the continuance of the loan for an additional one year period will not have any net financial impact on the City.

This report presents the financial standing of the loans and guarantee within this portfolio for the 2019 calendar year.

The effects of COVID-19 and related closure of many of the not-for-profit and City agency venues associated with these loans and guarantees has occurred in the current 2020 calendar year and are therefore beyond the scope of this report. 

In addition to City agencies, many of the not-for-profits operate in City-owned facilities so it is in the City's interest to ensure business continuity. Currently none of the loans are in default.  The City will continue to monitor the status of all of these loans and guarantees and bring forward any necessary actions for Council consideration that may arise from any future loan servicing deficiencies.

The Chief Financial Officer and Treasurer reviews and reports annually on the risk of loss under the City's loan guarantee and loan portfolios. With regular monitoring, it is possible to identify financial risks earlier and to take action to avoid or mitigate potential losses.

The Chief Financial Officer and Treasurer recommends that:  

1.  City Council receive this report for information.

The purpose of this report is to provide the following information:

1.  Performance of the Funds for 2019, and the first quarter of 2020; and

2.  General Market Update and Benchmark Performance.

The City's General Group of Funds (General Fund) that holds the City's working capital and the amounts designated for the City's reserves and reserve funds earned:

$267.3 million in 2019 (4.3 percent rate of return)
$41.5 million in the first quarter of 2020 (3.2 percent annualized rate of return)
 

The City's Sinking Fund portfolio that holds funds for future debt repayments earned:

$83.1 million in 2019 (4.9 percent rate of return)
$8.6 million in the first quarter of 2020 (2.3 percent annualized rate of return)
 

Since January 1, 2018, the City's long-term investments have been managed by the Toronto Investment Board under a new Council adopted Investment Policy which is based on the prudent investor standard.

As at December 31, 2019, approximately 77 percent of both the Sinking Fund and the Long Term Fund were managed by external investment managers selected by the Toronto Investment Board.  Four external fixed income managers control approximately 70 percent of the assets while two global equity pooled fund managers oversee 7 percent of these funds.  A third global equity pooled fund manager started in February 2020 resulting in a total equity exposure of 10 percent at the fund level. The balance of these funds remain in cash and short-term securities until additional external fund managers can be funded.  Selection and contract negotiations for an additional global equity pooled fund manager and real asset managers continues in 2020.

All funds managed are compliant with the Council-approved Investment Policy.

The City’s General Group of Funds ("General Fund") earned $267.3 million in 2019, and $41.5 million in the first quarter of 2020.

The 2019 earnings from the General Fund were allocated to the operating budget ($185.5 million) and reserve funds ($81.8 million) according to the Council approved interest allocation policy. The investment activities in 2019 and the first quarter of 2020 were compliant with the investment policies and goals adopted by City Council.

The City's Sinking Funds portfolio earned $83.1 million in 2019, and $8.6 million in the first quarter of 2020. These earnings are retained within the Sinking Funds and must be used for the purpose of retiring debenture debt at maturity.

The Chief Financial Officer and Treasurer recommends that:

1.  Executive Committee receive this report for information.

This report summarizes the changes impacting the City of Toronto (the City)'s obligatory reserve funds (deferred revenues), reserves, and Council-directed reserve funds as at May 31, 2020.

The City's deferred revenues (obligatory reserve funds), reserves, and Council-directed reserve funds are subject to annual changes based on funding contributions, transfers, and drawdowns, which are authorized by legislation, third-party agreements, and Council's approvals. The tables and appendices reflect information by major category.

As at May 31, 2020, the City recognized $6,540.8 million of deferred revenues (obligatory reserve funds), reserves, and Council-directed reserve funds, which consist of the following balances:

- committed funds for legislated, contractually bound or Council-directed activities ($5,507.7 million);

- committed funds to offset capital costs and pressures on rate-based activities ($718.1 million); and

- uncommitted and available funds for the City to respond to various unanticipated costs and to stabilize various funding sources, including the tax base ($315.0 million).

 
The reported balances include Council approved intra-fund loans that were granted to various City programs and must be repaid to the respective deferred revenues (obligatory reserve funds), reserves, and Council-directed reserve funds.

There are no financial implications contained in this report.

The Controller recommends that:

1.  City Council grant authority to the Director, Revenue Services to exercise the option to renew the agreement (Contract Number 47021814) with the Greater Toronto Hotel Association for the collection and remittance of the Municipal Accommodation Tax from hotels for an additional year effective from April 1, 2020 to March 31, 2021.

This report seeks Council's authority to amend Purchase Order Number 47021814 to extend the contract with the Greater Toronto Hotel Association to provide collection of the Municipal Accommodation Tax - Hotel on behalf of the City of Toronto.  Revenue Services is requesting an amendment to this contract to exercise a one-year optional extension of the term as permitted under the contract, and to add funds of $391,037 inclusive of HST and third party audit fees associated with this agreement.

The closure of Revenue Services' operations and reduced IT capacity due to the COVID-19 pandemic has delayed the development of an internal collection system for Municipal Accommodation Tax – Hotel Tax remittances directly from hotel operators. An amendment to this purchase order and extension to this contract will provide the additional time and resources required to complete the development, testing and implementation of the remittance and payment system with Technology Services. The contract with the Greater Toronto Hotel Association can be cancelled upon completion of the internal system, upon 60 days notice to the Greater Toronto Hotel Association.

The original agreement specified a term of two years, ending on March 31, 2020, but allows the option for the City to renew for up to two (2) additional one-year terms. Exercising the option to renew for one year would extend the agreement from April 1, 2020 to March 31, 2021 on the same terms. Recognizing that the cancellation of Committee and Council meetings as a result of the pandemic precluded extension of the agreement before the March 31, 2020 date, the Greater Toronto Hotel Association has continued to provide services under the contract in good faith since April 1, 2020 to the present.

The total potential cost of amending this contract for option year one is expected to be $391,037 net of all taxes and charges. These costs are derived from the agreement between the City of Toronto and the Greater Toronto Hotel Association executed on April 1, 2018, as summarized in Table 1 below.

Table 1: Summary of annual costs to amend contract with Greater Toronto Hotel Association for additional year (HST included)

1. Based on an average of 60 hotel compliance audits at an average cost of $1,350 per audit conducted annually

This renewal allows for continuity in collecting the hotel portion of the Municipal Accommodation Tax by the Greater Toronto Hotel Association  until such time that an internal collection system and on-line remittance and payment portal is launched. Funding for the internal operational costs of $171,000 is available in the Office of the Controller's 2020 Approved Operating Budget. The additional cost of $391,037 to exercise the option for an additional year will be netted against the 2020 program revenues.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as identified in the Financial Impact section.

The General Manager, Parks, Forestry and Recreation recommends that:  

1.  City Council authorize the reallocation of project costs, cash flows, and funding sources within the Parks, Forestry and Recreation's 2019 Council Approved Capital Budget and 2020-2028 Capital Plan in the amount of $5,515,541, for acceleration and deferral of projects, as included in Appendix 1.

2.  City Council authorize the reallocation of cash flows in the Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and 2021-2029 Capital Plan, for the deferral in the amount of $12,959,662 and acceleration in the amount of $11,101,173 as included in Appendix 2.

3.  City Council authorize amendments to increase project costs and cash flows within the Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and future year commitments in the amount of $6,184,606, as included in Appendix 3, with no debt impact.

4.  City Council authorize the reduction of cash flow and closure of five (5) sub-projects in the Parks, Forestry and Recreation's 2020 Council Approved Capital Budget in the amount of $1,210,182, as included in Appendix 4, and release commitments on development related funding sources to the appropriate accounts.

5.  City Council authorize the following adjustments to the Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and 2021-2029 Capital Plan for the Lower Yonge Street Community Recreation Centre Space sub-project, in the Community Centre project:

a.  City Council authorize the City of Toronto to enter into, and the General Manager, Parks, Forestry and Recreation to execute on behalf of the City, a Construction Management Agreement with Pinnacle International Limited for the construction of the Lower Yonge Street Community Recreation Centre, on terms and conditions deemed necessary and appropriate by the General Manager, Parks, Forestry and Recreation and the City Solicitor, and in accordance with City policies applicable to capital projects;

b.  City Council authorize the City of Toronto to enter into, and the General Manager, Parks, Forestry and Recreation to execute on behalf of the City any other ancillary agreements necessary to complete construction on the Community Recreation Centre, on terms and conditions satisfactory to the General Manager, Parks, Forestry and Recreation and the City Solicitor;

c.  City Council approve an amendment to the Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and 2021-2029 Capital Plan for the Lower Yonge Street Community Recreation Centre Space sub-project, in the Community Centre project, in the amount of $0.500 million, increasing the total project cost from $17.500 million to $18.000 million, with cash flow commitments in 2021, fully funded by Development Charges (XR2114); and

d.  City Council advance the Lower Yonge Community Recreation Centre Space by authorizing the General Manager, Parks Forestry and Recreation to transfer up to $18.000 million from the Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and 2021-2029 Capital Plan from the Lower Yonge Street Community Recreation Centre sub-project, subject to entering into an agreement with Pinnacle International Limited, to that entity to fund the City's agreed cash portion for the development of the Lower Yonge Street Community Recreation Centre Space.

6.  City Council approve an amendment to the Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and 2021-2029 Capital Plan for the CAMP (State of Good Repair) Special Facilities Buildings and Structures (CPR126-47-01) sub-project, in the Special Facilities project, in the amount of $0.258 million, increasing the total project cost from $4.360 million to $4.618 million, cash flowed in 2020, with funding from the following Section 42 Above 5 percent Cash-in-lieu sources for capital improvements to the llama and capybara building in High Park Zoo: $25,734.43 from 489 Parkside Drive (source account: XR2213-4200752) and $232,265.57 from 2114 Bloor Street West (source account: XR2213-4201055).

7.  City Council authorize the transfer of up to an additional $0.343 million to the Friends of High Park Zoo, from the Parks, Forestry and Recreation's 2020-2029 Council Approved Capital Budget and Plan under the CAMP (State of Good Repair) Special Facilities Buildings and Structures sub-project, in the Special Facilities project, for capital improvements to the llama and capybara building in High Park Zoo, on terms and conditions satisfactory to the General Manager, Parks, Forestry and Recreation.

8.  City Council authorize the General Manager of Parks, Forestry and Recreation to amend the Construction and Licence Agreement dated January 1, 2017 between the City and the Friends of High Park Zoo, to allow for the transfer of up to an additional $0.343 million from the City to the Friends of High Park Zoo, to be used for the purpose of the Llama and Capybara Building Project at the High Park Zoo, on terms and conditions acceptable to the General Manager and the City Solicitor.

9.  City Council approve an amendment to the Parks, Forestry and Recreation's 2020-2029 Council Approved Capital Budget and Plan to create a new capital sub-project known as Clydesdale Tennis Clubhouse Improvements in the Outdoor Recreation Centre project, with a project cost of $0.582 million, and cash flow commitments of $0.040 million in 2020 and $0.542 million in 2021, fully funded by Section 37 community benefits obtained from the development at 2135 Sheppard Avenue East and 299 Yorkland Boulevard (XR3026-3700857), for the purpose of improvements to the building.

This report requests authority from City Council to amend the Parks, Forestry and Recreation's 2019 Council Approved Capital Budget and 2020-2028 Capital Plan by adjusting project costs and future year cash flows to align with year-end expenditures and project progress. 

Authority is also requested to amend the Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and 2021-2029 Capital Plan by adjusting project costs and future year cash flows contained within the 10-Year Capital Plan.  These adjustments will align cash flows for capital project delivery schedules and program requirements and as a result, will have no impact on the timing of debt requirements.  Reallocations of cash flows and project costs are also requested where recent project bids exceed the current approved cash flow, or alternatively to advance projects into 2020 that are ready to proceed. 

Projects that have been completed or cancelled are also requested to be closed, with cash flow reduced, and commitments on funding sources to be released to their funding sources for future budgeting.

In addition, authority from City Council is required to execute a Construction Management Agreement between the City of Toronto and Pinnacle International Limited in order for the City to provide funding for the fit-out of the Lower Yonge Street Community Recreation Centre Space.  An amendment to the Construction and License Agreement between the City and the Friends of High Park Zoo is also being recommended, increasing the amount of funds to be transferred from the City to the Friends of High Park Zoo for capital improvements to the llama and capybara building in High Park Zoo.

Approval of the recommendations of this report will align the 2019 Council Approved Capital Budget for Parks, Forestry and Recreation with 2019 final year-end expenditures and the 2020 Council Approved Capital Budget and 2021-2029 Capital Plan with capital project delivery schedules and program requirements.

The approval of Appendix 1 and 2 to this report will authorize the deferral and acceleration of funds in the 2019 Council Approved Capital Budget and future year cash flow funding in the amount of $5,515,541 (Appendix 1); as well as the 2020 Council Approved Capital Budget and future year cash flow commitments totalling $12,959,662 (Appendix 2), respectively.  The acceleration of future year cash flow funding with corresponding offsets or deferrals from other projects do not change the total project costs, the scope of the projects, or approved debt requirements.

Table 1 - Summary of Financial Implications of Appendix 1 and 2 Acceleration / Deferrals:

A number of multi-year projects are projected to proceed ahead of the forecast.  The accelerated spending of cash flow for these projects is off-set by delays within other projects where works are delayed due to delays in completing designs, due to coordination with other projects or delays to construction works as outlined in Appendix 1 and 2.

In addition, it is recommended that City Council approve in-year budget adjustments to the 2020-2029 Council Approved Capital Budget and Plan that results in no incremental impact on debt funding.  The total change includes an overall net increase in project costs of $7,524,606 with associated cash flow funding of $6,489,606 in 2020 and $1,035,000 in 2021 to reflect expanded scope of work resulting from the community engagement; additional grant funding; and cost escalations where bids received are above the available cash flow or projects are experiencing unforeseen site conditions for various neighbourhood improvement projects, as detailed in Appendix 3 and Recommendations 5c, 6, and 9, fully funded by Development Charges, Section 37 and 42 Planning Act revenues, grant funding and donations.  

Appendix 4 details five (5) capital projects which have been completed or cancelled, that can now be closed.  Together these capital projects have a combined underspending of $1,210,182 in 2020 for which the associated funding will be returned to their original funding sources.

Any operating impacts resulting from these capital projects upon completion will be submitted in future Operating Budget Submissions for consideration. 

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The Toronto Accessibility Advisory Committee recommends that:

1.  City Council direct the Executive Director, Social Development, Finance and Administration, the General Manager, Shelter, Support and Housing Administration, and the Executive Director, Housing Secretariat to bring forward presentations on how the City is specifically supporting vulnerable people with disabilities in Toronto during and beyond COVID-19, to the September 24, 2020 meeting of the Toronto Accessibility Advisory Committee.

2.  City Council direct the General Manager, Transportation Services, to bring forward presentations on CurbTO, ActiveTO, CafeTO, and any other new transportation programs and initiatives to address COVID-19, to the September 24, 2020 meeting of the Toronto Accessibility Advisory Committee.

3.  City Council direct the General Manager, Parks, Forestry and Recreation to bring forward presentations on SwimTO, CampTO, and any other new or existing recreational programs and initiatives, detailing any efforts and modifications to accommodate persons with disabilities, and any employment opportunities for persons with disabilities, to the September 24, 2020 meeting of the Toronto Accessibility Advisory Committee.

 
4.  City Council direct the Executive Director, Social Development, Finance and Administration, and the Executive Director, People and Equity, in collaboration with the General Manager, Economic Development and Culture, and in consultation with accessibility stakeholders, to develop guidelines for businesses to support the needs of persons living with disabilities including:

a.  access to clear face shields, and any alternatives including notepads, to facilitate lip reading, visual facial cues and communication with persons living with disabilities;

b.  support persons who can assist in navigating smaller spaces to support physical distancing for people living with disability; and

c.  ensuring that cash remains an accepted legal tender across businesses.

 
5.  City Council direct the Chief People Officer, People and Equity, in collaboration with the General Manager, Parks, Forestry and Recreation, and leveraging existing partnerships and programming, to explore opportunities to better support access to safe outdoor day programming for persons living with disabilities and any employment opportunities for persons with disabilities as part of a pilot strategy within the City's COVID-19 Recovery and Rebuild and report back in the first quarter of 2021. 

6.  City Council direct the Chief People Officer, People and Equity, in collaboration with the General Manager, Parks, Forestry and Recreation and the General Manager, Toronto Employment and Social Services, and in consultation with accessibility stakeholders, to develop an outreach model and determine an appropriate pilot strategy, for the purpose of providing support and referrals to relevant services, to inform persons living with disabilities, on opportunities for safe and accessible day programming and report back to the November 16, 2020 meeting of the Toronto Accessibility Advisory Committee.

  
7.  City Council request the Toronto Transit Commission Board to direct the Chief Executive Officer, Toronto Transit Commission to bring forward presentations on new or existing initiatives, detailing any efforts and modifications to accommodate persons with disabilities, as a response to COVID-19 response and recovery, to the November 16, 2020 meeting of the Toronto Accessibility Advisory Committee.

 
8.  City Council direct the Chief Communications Officer, Strategic Communications along with any other applicable City Divisions to consolidate and disseminate information on supports and services for persons living with disabilities, highlighting any services changes, additions or disruptions of new or existing services and report back by the November 16, 2020 meeting of Toronto Accessibility Advisory Committee.

9.  City Council request the Medical Officer of Health to provide a presentation to the September 24, 2020 meeting of the Toronto Accessibility Advisory Committee on Toronto Public Health's response and efforts related to COVID-19.

10.  City Council direct the Toronto Office of Recovery and Rebuild to designate a staff person to be the liaison to the Toronto Accessibility Advisory Committee.

11.  City Council request the Province of Ontario and the Federal government to increase the frequency and amount of funding opportunities for qualifying individuals and families, including those receiving the Disability Tax Credit, to better support their ongoing needs including:

a.  access to protective personal equipment, including masks and gloves, for themselves and their personal support worker;

b.  access to technology  including Wi-Fi, computers and webcams to combat isolation and improve mental health; and

c.  access to recreation activities as many day programs, and respite centres are closed.

At its meeting on July 3, 2020, the Toronto Accessibility Advisory Committee considered Item DI8.2: "City of Toronto COVID-19 Response and Accessibility" and made recommendations to City Council through the Executive Committee.

The Toronto Accessibility Advisory Committee recommends that: 

1.  The Executive Committee request the City Manager, in consultation with the City Clerk to review options for allowing remote participation by Toronto Accessibility Advisory Committee members when an accommodation is required, and provide an update to the Toronto Accessibility Advisory Committee at its November 16, 2020 meeting.

At its meeting on July 3, 2020, the Toronto Accessibility Advisory Committee considered Item DI8.4: "Options for Assistive, Remote Participation to Improve Accessibility" and made recommendations to City Council through the Executive Committee.

The Toronto Accessibility Advisory Committee recommends that:

1.  City Council direct the City Manager and the Chief Financial Officer and Treasurer to ensure that people with disabilities are consulted and/or have opportunity to provide input prior to Fall 2020 on any decisions related to service cuts.

 
2.  City Council direct the Chief Financial Officer and Treasurer to apply a disability policy lens to all City of Toronto budget processes to ensure that accessibility and inclusion become central to budget planning and that accommodation costs and resources are addressed organizationally as per human rights legislation and Ontario Human Rights Commission Policy on Ableism 9.3:

“…The costs of accommodation must be distributed as widely as possible within the organization so that no single department, employee, customer or subsidiary is burdened with the expense. The appropriate basis for evaluating the cost is based on the budget of the organization as a whole, not the branch or unit where the person with a disability works or has made an application…”

 
3.  City Council direct the City Manager and the City Clerk to review options that improve accessibility to decision-making and save costs such as allowing for remote participation in Committee and consultation meetings and investigating other digital inclusion strategies.

 
4.  City Council request the Mayor to champion and highlight the needs of people with disabilities when lobbying the Federal and Provincial Governments for financial assistance in addressing the budget shortfall expected this year.

At its meeting on July 3, 2020, the Toronto Accessibility Advisory Committee considered Item DI8.5: "Applying an Accessibility Lens to Improve Access and Inclusion in City Budget and Other Processes" and made recommendations to City Council through the Executive Committee.

At its meeting held on February 25, 2020, the Toronto Police Services Board (Board) was in receipt of a report from Chief of Police Mark Saunders, with regard to Establishing a Community Police Office in Lawrence Heights.

The Board received the report and I would like to forward a copy to the City of Toronto Executive Committee. 

A copy of the Board Minute P34/2020 regarding this matter is attached.

At its meeting on January 22, 2020, the Toronto Police Services Board was in receipt of a report from, Ryan Teschner, Executive Director, with regard to City of Toronto Council Decision – Request to Establish a Community Police Office at 200 Poplar Road.

The Board approved Mr. Teschner’s report and agreed that a copy be forwarded to the City of Toronto Executive Committee.

A copy of the Board minute P10/2020 regarding this matter is attached.

At its meeting on January 22, 2020, the Toronto Police Services Board was in receipt of a report from Chief Mark Saunders with regard to the City of Toronto Council Decisions – 2017 Annual Statistical Report.

The Board received the Chief’s report and agreed that a copy of this report be forwarded to the City of Toronto Executive Committee.

A copy of the Board minute P9/2020 regarding this matter is attached.

City Council on June 29 and 30, 2020, referred Administrative Inquiry IA22.1 from Councillor Paul Ainslie, Ward 24, Scarborough-Guildwood, on Toronto Police Services Board Open Data Report and Answer IA22.1a from the City Clerk to the Executive Committee for consideration.

The Board of Governors of Exhibition Place recommends that:

1.  City Council approve an agreement with Coca-Cola Canada Bottling Ltd. ("Coke") for a period of five years, commencing on the date of approval of City Council, to be the official and exclusive soft drink provider to Exhibition Place, including Enercare Centre and Beanfield Centre, on the terms and conditions set out in the report (June 10, 2020) from the Chief Executive Officer, Exhibition Place and such other terms and conditions as may be satisfactory to the Chief Executive Officer and the City Solicitor.

At its meeting on June 24, 2020, the Board of Governors of Exhibition Place considered Item EP11.5: "Soft Drink Sponsorship Agreement" and made a recommendation to City Council through the Executive Committee.

The City Clerk recommends that effective from the date that Bill 197 is passed and proclaimed:

1. City Council extend the electronic participation rules applicable only during a declared emergency currently contained in Municipal Code Chapter 27, Council Procedures, for a period of one year following the later of the termination of the Provincial emergency or the termination of the municipal emergency.

2. City Council extend the electronic participation rules applicable only during a declared emergency currently contained in the Simplified Rules for Advisory Bodies for a period of one year following the later of the termination of the Provincial emergency or the termination of the municipal emergency.

3. City Council authorize its local boards to extend or adopt remote electronic meeting rules for a period of one year following the later of the termination of the Provincial emergency or the termination of the municipal emergency.

4. City Council review the rules for electronic meetings for City Council and its local boards before the expiry of the recommended extensions.

5. City Council request the City Clerk to report to the October 2020 Executive Committee meeting with options for Council to consider with respect to proxies.

The Province has introduced legislation that would allow City Council (a) to make remote meeting participation for Council and local boards permanent and (b) to allow Members of Council to act by proxy during meetings.

City Council should extend the current electronic meeting rules for itself and local boards for a period of one year following the termination of provincial and municipal emergencies.  This would give Council more experience with these types of meetings to help decide whether to decide if it wishes to make the rules permanent.

City Council should also decide if it wishes to opt-in to the proxy provisions, and if so, direct the City Clerk to report on the implementation options.

Amendments to the Council Procedures require the approval of two-thirds of Members present and voting.

If Council decides to extend or make permanent the electronic participation rules, the City Clerk and Chief Technology Officer may need to make investments in technology solutions to replace the ad hoc arrangements that have been made to support electronic participation during the emergency period.  Any additional funding required for meeting support will be included in the annual budget submissions for the City Clerk's Office and Technology Services.