Agenda

This meeting of City Council will be conducted with Members participating in person and remotely and the proceedings of City Council will be conducted publicly.

Notice to people writing to Council: The City of Toronto Act, 2006 and the City of Toronto Municipal Code authorize the City of Toronto to collect any personal information in your communication or presentation to City Council or its committees. The City collects this information to enable it to make informed decisions on the relevant issue(s). If you are submitting letters, faxes, e-mails, presentations or other communications to the City, you should be aware that your name and the fact that you communicated with the City will become part of the public record and will appear on the City’s website. The City will also make your communication and any personal information in it – such as your postal address, telephone number or e-mail address – available to the public, unless you expressly request the City to remove it.

Closed Meeting Requirements: If Council wants to meet in closed session (privately), a Member of Council must place a motion to do so and give the reason why Council has to meet privately (City of Toronto Act, 2006).

July 14, 2022

toronto.ca/council

This agenda and any supplementary materials submitted to the City Clerk can be found online at www.toronto.ca/council. Visit the website for access to all agendas, reports, decisions and minutes of City Council and its committees.

- O Canada

- Moment of Silence

City Council will confirm the Minutes from the regular meeting held on June 15 and 16, 2022 and the special meeting held on June 24, 2022.

 Deferred Committee Items:

Item NY31.2

Item PH34.14

Item PH34.15

Item PH34.16

Item PH34.17

Other Deferred Matter:

DM47.1

Report of the Executive Committee from Meeting 34 on July 12, 2022

Submitted by Mayor John Tory, Chair 

Report of the Audit Committee from Meeting 13 on July 11, 2022

Submitted by Councillor Stephen Holyday, Chair

Report of the Board of Health from Meeting 38 on June 20, 2022

Submitted by Councillor Joe Mihevc, Chair   

Report of the Civic Appointments Committee from Meeting 29 on June 22, 2022

Submitted by Deputy Mayor Denzil Minnan-Wong, Chair  
 

Report of the Economic and Community Development Committee from Meeting 31 on July 6, 2022

Submitted by Councillor Michael Thompson, Chair  
 

Report of the General Government and Licensing Committee from Meeting 32 on July 4, 2022

Submitted by Councillor Paul Ainslie, Chair

Report of the Infrastructure and Environment Committee from Meeting 31 on July 7, 2022

Submitted by Councillor Jennifer McKelvie, Chair  

Report of the Planning and Housing Committee from Meeting 35 on July 5, 2022

Submitted by Councillor Ana Bailão, Chair

Report of the Etobicoke York Community Council from Meeting 33 on June 27, 2022

Submitted by Councillor Mark Grimes, Chair

Report of the North York Community Council from Meeting 33 on June 28, 2022

Submitted by Councillor James Pasternak, Chair

Report of the North York Community Council from Meeting 34 on July 8, 2022

Submitted by Councillor James Pasternak, Chair

Report of the Scarborough Community Council from Meeting 33 on June 30, 2022

Submitted by Councillor Jennifer McKelvie, Chair 

Report of the Toronto and East York Community Council from Meeting 34 on June 29 and 30, 2022

Submitted by Councillor Gord Perks, Chair 

New Business submitted by the Mayor and City Officials 

Members of Council will declare interests under the Municipal Conflict of Interest Act.

Members of Council may file petitions.

Various presentations and announcements will be made at the City Council meeting.

City Council will review the Order Paper.

North York Community Council recommends that:

1. City Council amend Zoning By-law 569-2013, as amended, for the lands at 147 Overbrook Place substantially in accordance with the draft Zoning By-law Amendment to be forwarded to City Council.

2. City Council amend City of Toronto Zoning By-law 7625, as amended, for the lands at 147 Overbrook Place substantially in accordance with the draft Zoning By-law Amendment to be forwarded to City Council.

3. City Council authorize the City Solicitor to make such stylistic and technical changes to the draft Zoning By-law Amendment as may be required.

4. City Council direct the Director, North York Community Planning on the file to: 

a. ensure that all unit entrances are from Overbrook Place and that all 10 semi-detached units have access to the public sidewalk along Overbrook Place;

b. ensure that the proposed sidewalk along Shaftsbury is extended further down the property line until the gate of the adjoining property; and

c. to work with the applicant in producing a privacy buffer along the south property line is secured through things such as landscaping, window placement and/or other design options in consultation with the local Ward Councillor.

The North York Community Council held a statutory public meeting on April 20, 2022 and notice was given in accordance with the Planning Act.

This application proposes to amend the Zoning By-law to permit 10 semi-detached 3-storey residential dwellings to be accessed via shared driveways at 147 Overbrook Place. The proposed floor space index is 1.54 times the area of the lot.  The site is located at the southeast corner of Overbrook Place and Shaftesbury Street. There is an existing parking lot within the proposed development area of the site.

The proposed development is consistent with the Provincial Policy Statement (2020) and conforms with A Place to Grow: Growth Plan for the Greater Golden Horseshoe (2020).

This report reviews and recommends approval of the application to amend the Zoning By-laws 7625 and 569-2013

Staff have reviewed the proposal and are recommending approval in an amended form with a minimum rear yard setback of 4 metres.

The Planning and Housing Committee recommends that:

1. City Council approve the application to amend the Sign By-law to add an area specific amendment to Schedule 'B' of Chapter 694, Signage Master Plans and Area-Specific Amendments, to establish regulations applicable to the premises municipally known as 2025 Wilson Avenue to allow for, and regulate, in addition to the signage otherwise permitted by the Sign By-law, a third party electronic ground sign, and modify the permitting regime with respect to this third party electronic ground sign, as described in Attachment 1 to the report (May 16, 2022) from the Chief Building Official and Executive Director, Toronto Building.

Toronto's Sign By-law is a harmonized, City-wide set of regulations governing signs which was adopted in 2010. The Sign By-law contains a process for any member of the public to apply to City Council to amend the Sign By-law in order to implement significant changes to the sign regulations for a specific property or area. Applications are commonly made requesting amendments to the Sign By-law to allow signs that are prohibited, to remove permissions for signs in an area, or to modify the administrative requirements of the Sign By-law. The Chief Building Official ("CBO") brings applications to amend the Sign By-law together on an annual basis for City Council consideration, so that that City Council can more easily assess the overall and cumulative impact of these applications on the city's built environment, and the Sign By-law itself. 

This report responds to an application for an amendment to the Sign By-law to replace the existing regulations concerning 2025 Wilson Avenue with regulations which would allow the property to display a third party electronic ground sign (the Proposed Sign), which is in contravention of numerous provisions of the Sign By-law. Currently, 2025 Wilson Avenue contains no third party ground signs.

2817270 Ontario Limited (the "Applicant") as made an application seeking City Council to amend the Sign By-law to replace the existing regulations concerning 2025 Wilson Avenue with new regulations which would:

-  Establish regulations to allow for, and regulate, a third party electronic ground sign (the "Proposed Sign"), which would: have a sign face area of 62.4 square metres (more than three times larger than permitted by the Sign By-law) and a height of 13.8 metres (3.8 metres higher than permitted by the Sign By-law); be built with two sign faces in a "v-shaped" configuration, which is typically prohibited by the Sign By-law, and, be erected within 250 metres of, and face, a Residential Apartment ("RA") Sign District, a Commercial Residential ("CR") Sign District, a Residential ("R") Sign District and an Open Space ("OS") Sign District, contrary to the minimum separation distances required by the Sign By-law

- Exempt 2025 Wilson Avenue from the area-specific restriction contained at 694-24A (1) of the Sign By-law which expressly prohibits any third party signs from being displayed on these premises; and,

-  Modify the permitting regulations for third party signs at 2025 Wilson Avenue to allow for the Proposed Sign to be issued a sign permit which would have a ten-year duration, double the permit length for other third party signs set out in the Sign By-law.

This application only qualifies for consideration by City Council as an amendment to the Sign By-law due to the request to amend the permitting regime applicable to 2025 Wilson Avenue.

Toronto Building has reviewed the Applicant's submission materials and cannot determine any basis for City Council to amend the City's Sign By-law to the Proposed Sign which is contrary to City Council's direction with respect to third party electronic ground signs generally, or City Council's direction with respect to the prohibition of third party signs at 2025 Wilson Avenue. 

Further, Toronto Building cannot determine a basis for City Council to amend the Sign By-law to allow a sign permit to have a duration twice as long as otherwise permitted for third party signs, where the Proposed Sign is so significantly different from the Sign By-law requirements for signs of this type throughout the City, as well as being located within an area of the City where third party signs are specifically prohibited.

Toronto Building, in consultation with Transportation Services, conducted a thorough review of the application, and has concluded that the Applicant's rationale is not consistent with the traffic safety requirements or objectives of the Sign By-law. For the reasons set out in this report, the Chief Building Official does not support amending the Sign By-law for 2025 Wilson Avenue.

The Planning and Housing Committee recommends that:

1. City Council approve the application to amend the Sign By-law to add an area specific amendment to Schedule 'B' of Chapter 694, Signage Master Plans and Area-Specific Amendments, to establish regulations applicable to the premises municipally known as 55 Beverly Hills Drive to allow for, and regulate, in addition to the signage otherwise permitted by the Sign By-law, one third party electronic ground sign, and modify the permitting regime with respect to this third party electronic ground sign, as described in Attachment 1 to the report (May 16, 2022) from the Chief Building Official and Executive Director, Toronto Building.

Toronto's Sign By-law is a harmonized, City-wide set of regulations governing signs which was adopted in 2010. The Sign By-law contains a process for any member of the public to apply to City Council to amend the Sign By-law in order to implement significant changes to the sign regulations for a specific property or area. Applications are commonly made requesting amendments to the Sign By-law to allow signs that are prohibited, to remove permissions for signs in an area, or to modify the administrative requirements of the Sign By-law. The Chief Building Official and Executive Director, Toronto Building ("CBO") brings applications to amend the Sign By-law together on an annual basis for City Council consideration, so that that City Council can more easily assess the overall and cumulative impact of these applications on the city's built environment, and the Sign By-law itself. 

2817270 Ontario Limited (the "Applicant") has made an application seeking City Council approval to amend the Sign By-law to replace the existing regulations concerning 55 Beverly Hills Drive with new regulations which would:

- Establish regulations to allow for, and regulate, a third party electronic ground sign (the "Proposed Sign"), which would: have a sign face area of 62.4 square metres (more than three times larger than permitted by the Sign By-law) and a height of 13.8 metres (3.8 metres higher than permitted by the Sign By-law); be built with two sign faces in a "v-shaped" configuration, which is typically prohibited by the Sign By-law, and, be erected within 250 metres of, and face, an Institutional ("I") Sign District, a Commercial Residential ("CR") Sign District, and an Open Space ("OS") Sign District, contrary to the minimum separation distances required by the Sign By-law;

- Exempt 55 Beverly Hills Drive from the area-specific restriction listed in 694-24A(1)  of the Sign By-law which prohibits third party signs from being displayed on the premises, which is located within 400 metres of Highway 401; and,

- Modify the permitting regulations for third party signs at 55 Beverly Hills Drive to allow for the Proposed Sign to be issued a sign permit which would have a ten-year duration, double the permit length for third party signs set out in the Sign By-law.

This application only qualifies for consideration by City Council as an amendment to the Sign By-law due to the request to amend the permitting regulations applicable to third party signs at 55 Beverly Hills Drive.

Toronto Building has reviewed the Applicant's submission materials and cannot determine any basis for City Council to amend the City's Sign By-law to the Proposed Sign which is contrary to City Council's direction with respect to third party electronic ground signs generally, or City Council's direction with respect to the prohibition of third party signs at 55 Beverly Hills Drive, which is within 400 metres of Highway 401. 

Further, Toronto Building cannot determine a basis for City Council to amend the Sign By-law to allow a sign permit to have a duration twice as long as otherwise permitted for third party signs, where the Proposed Sign is so significantly different from the Sign By-law requirements for signs of this type throughout the City, as well as being located within an area of the City where third party signs are specifically prohibited.

Toronto Building, in consultation with Transportation Services, conducted a thorough review of the application, and has concluded that the Applicant's rationale is not consistent with the objectives of the Sign By-law. For the reasons set out in this report, the Chief Building Official does not support amending the Sign By-law for 55 Beverly Hills Drive.

The Planning and Housing Committee recommends that:

1. City Council approve the revised application to amend the Sign By-law to add an area-specific amendment to Schedule 'B' of Chapter 694, Signage Master Plans and Area-Specific Amendments in Attachment 1 to the supplementary report (May 25, 2022) from the Chief Building Official and Executive Director, Toronto Building to exclude a specific portion of the area defined as the Bala Subdivision from the existing area-specific prohibition on the erection or display of any third party signs contained at section 694- 24A(17); establish regulations applicable to these premises to allow for, and regulate, in addition to the signage otherwise permitted by the Sign By-law, a third party electronic ground sign, and to further amend 694- 24A to establish one new area-specific prohibition on the display of third party signs in another portion of the Bala Subdivision; two new area-specific prohibitions on the display of third party signs in portions of the Oakville Subdivision; and two new area-specific prohibitions in the Kingston Subdivision.

The Planning and Housing Committee recessed its public session and met in closed session to consider confidential information on this Item that is subject to solicitor-client privilege.

Toronto's Sign By-law is a harmonized, City-wide set of regulations governing signs which was adopted in 2010. The Sign By-law contains a process for any member of the public to apply to City Council to amend the Sign By-law in order to implement significant changes to the sign regulations for a specific property or area. Applications are commonly made requesting amendments to the Sign By-law to allow signs that are prohibited, to remove permissions for signs in an area, or to modify the administrative requirements of the Sign By-law. The Chief Building Official ("CBO") brings applications to amend the Sign By-law together on an annual basis for City Council consideration, so that City Council can more easily assess the overall and cumulative impact of these applications on the city's built environment, and the Sign By-law itself.

This report responds to an application for multiple amendments to the Sign By-law made by Allvision Canada (the "Applicant") on behalf of Metrolinx, concerning specific portions of railway corridors owned or managed by Metrolinx, specifically the "Bala Subdivision", the "Oakville Subdivision", and the "Kingston Subdivision".  

The Applicant proposes that City Council amend the Sign By-law in multiple ways:

- To exempt a specific portion of the Bala Subdivision (municipally known as 3300 Leslie Street) directly adjacent to Highway 401, from an area-specific restriction that prohibits any third party signs from being erected in this location;

- To establish regulations for a sign with two rectangular sign faces, each with a vertical dimension of 4.27 metres and horizontal dimension of 14.63 metres, sign face area of approximately 62.47 square metres each (three times larger than permitted by the Sign By-law); a height of 22.86 metres (more than twice as high as permitted in the Sign By-law); for the two sign faces to be built in a "v-shaped" configuration, which is typically prohibited by the Sign By-law; built within 60 metres of a Commercial Residential ("CR") Sign District; and, located within 250 metres and facing properties within CR, Institutional ("I"), Open Space ("OS") and Residential ("R") Sign Districts, which is also prohibited by the Sign By-law. ("The Proposed Sign"); and,

- To establish five new area specific prohibitions on the display of third party signs within a 100 metre radius of specific portions of rail corridors known as the "Bala Subdivision", the "Oakville Subdivision", and the "Kingston Subdivision".  

The proposed amendment would also modify permitting regulations in the Sign By-law so that a permit for the Proposed Sign would be contingent on the removal of five existing signs that are located between 0.6 and 18.5 km away from the Proposed Sign, within the Bala Subdivision, the Oakville Subdivision and the Kingston Subdivision. In conjunction with these removals, the proposed amendment would introduce five new area specific restrictions that are not only unrelated to the Proposed Sign, but are also largely redundant and will result in unnecessary restrictions in the Sign By-law.

Toronto Building, in consultation with City Planning and Transportation Services, conducted a thorough review of the application, and has concluded that the Applicant's rationale is not consistent with the objectives of the Sign By-law. For the reasons set out in this report, the Chief Building Official does not support amending the Sign By-law for these locations throughout the city.

This report is a supplement to the May 9, 2022, report from the Chief Building Official and Executive Director, Toronto Building, ("CBO") with respect to area-specific amendments to the Sign Bylaw for six locations within the Bala Subdivision, the Oakville Subdivision and the Kingston Subdivision. The application for these area specific amendments was made by Allvision Canada (the "Applicant") concerning specific portions of railway corridors owned or managed by Metrolinx, specifically the "Bala Subdivision", the "Oakville Subdivision", and the "Kingston Subdivision"

The proposed amendment was described in the Chief Building Official and Executive Director, Toronto Building report dated May 9, 2022, ("the Original Report") which described a proposal for one third party electronic sign; located within the Bala Subdivision directly adjacent to Highway 401 (described in the Original Report as "the Proposed Sign"). As part of the application, a request was made to modify the permitting regulations in the Sign By-law so that a permit for the Proposed Sign would be contingent on the removal of five existing signs, and revocation of all associated permits. The proposed amendment also sought to establish five area-specific prohibitions located between 0.6 and 18.5 km away from the Proposed Sign, within the Bala Subdivision, the Oakville Subdivision and the Kingston Subdivision.

The proposed amendment was contingent on the five existing signs being erected as of the date of scheduled Planning and Housing Committee meeting. A May 24, 2022, investigation by staff has identified that one of these five signs, located east of Sherbourne Street and north of Lakeshore Boulevard, which was proposed to be removed as part of the application described in the Original Report, has been removed prior to Council consideration of this item.

This report is to provide the details around the sign that has been removed, as well as to provide an amended version of the proposed amendment to the Sign Bylaw in Appendix 1 to this report. For the reasons set out in this report and in the Original Report, the Chief Building Official and Executive Director, Toronto Building does not support amending the Sign By-law for these locations throughout the city.

The Planning and Housing Committee recommends that:

1. City Council approve the application to amend the Sign By-law to add an area-specific amendment to Schedule 'B' of Chapter 694, Signage Master Plans and Area-Specific Amendments, to exclude a specific portion of the area defined as the Galt Subdivision from the existing area-specific prohibition on the erection or display of any third party signs contained at section 694- 24A(17); establish regulations applicable to these premises to allow for, and regulate, in addition to the signage otherwise permitted by the Sign By-law, a third party electronic ground sign, and to further amend 694- 24A to establish five new area-specific prohibitions on the display of third party signs in other portions of the Galt Subdivision.

Toronto's Sign By-law is a harmonized, City-wide set of regulations governing signs which was adopted in 2010. The Sign By-law contains a process for any member of the public to apply to City Council to amend the Sign By-law in order to implement significant changes to the sign regulations for a specific property or area. Applications are commonly made requesting amendments to the Sign By-law to allow signs that are prohibited, to remove permissions for signs in an area, or to modify the administrative requirements of the Sign By-law. The Chief Building Official (CBO) brings applications to amend the Sign By-law together on an annual basis for City Council consideration, so that City Council can more easily assess the overall and cumulative impact of these applications on the city's built environment, and the Sign By-law itself.

This report responds to an application for multiple amendments to the Sign By-law made by Allvision Canada (the "Applicant") on behalf of Metrolinx, concerning specific portions of a railway corridor owned or managed by Metrolinx, specifically the "Galt Subdivision".  

The Applicant proposes that City Council amend the Sign By-law in multiple ways:

- To exempt a specific portion of the Galt Subdivision directly adjacent to Highway 427, from an area-specific restriction that prohibits any third party signs from being erected in this location;

- To establish regulations for a sign with two rectangular sign faces, each with a vertical dimension of 4.27 metres and horizontal dimension of 14.63 metres, sign face area of approximately 62.47 square metres each (three times larger than permitted by the Sign By-law); a height of 18 metres (almost twice as high as permitted in the Sign By-law); for the two sign faces to be built in a "v-shaped" configuration, which is typically prohibited by the Sign By-law and, located within 60 metres to a Commercial Residential ("CR") Sign District and facing properties in the CR Sign District which is also prohibited by the Sign By-law ("the Proposed Sign"); and,

- To establish five new area specific prohibitions on the display of third party signs within a 100 metre radius of specific portions of rail corridors known as the "Galt Subdivision".

The proposed amendment would also modify permitting regulations in the Sign By-law so that a permit for the Proposed Sign would be contingent on the removal of five existing signs that are between 1.0 and 6.0 km away from the Proposed Sign, within the Galt Subdivision. In conjunction with these removals, the proposed amendment would introduce five new area specific restrictions that are not only unrelated to the Proposed Sign, but are also largely redundant and will result in unnecessary restrictions in the Sign By-law.

Toronto Building, in consultation with City Planning and Transportation Services, conducted a thorough review of the application, and has concluded that the Applicant's rationale is not consistent with the objectives of the Sign By-law. For the reasons set out in this report, the Chief Building Official does not support amending the Sign By-law for these locations throughout the city.

The City Solicitor recommends that:

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

2.  If the confidential instructions in Confidential Attachment 1 are adopted, City Council authorize the public release of the recommendations contained in the Confidential Attachment 1, with the remainder of Confidential Attachment 1 and Confidential Attachment 2 to remain confidential as it contains advice subject to solicitor-client privilege.

87 Ethel Avenue Holdings Ltd. (the "Appellant") is a party to an appeal to Official Plan Amendment 231 ("OPA 231") to the Ontario Land Tribunal ("OLT") regarding the property municipally known as 87 Ethel Avenue (the "Lands”).  City Council adopted OPA 231 in 2013 following the Five-Year Official Plan and Municipal Comprehensive Reviews regarding employment lands.  OPA 231 re-designates the Lands as Core Employment Areas and the Appellant seeks the Mixed Use Areas designation.  The City Solicitor requires further directions.

The Executive Committee recommends that:

1. City Council adopt the Development Charges By-law in Attachment 1 to the report (June 28, 2022) from the Chief Financial Officer and Treasurer, and Chief Planner and Executive Director, City Planning, as amended by Recommendations 2 and 3 below.

2. City Council direct the City Solicitor, in consultation with the Chief Financial Officer and Treasurer, to amend the draft Development Charge By-law in Attachment 1 to the report (June 28, 2022) from the Chief Financial Officer and Treasurer, and Chief Planner and Executive Director, City Planning, such that the development charge rates for secured purpose built rental housing and Inclusionary Zoning projects that will be effective on August 15, 2022 will apply, including indexing, for the term of the current Development Charges by-law.

3. City Council amend the Development Charges By-law in Attachment 1 to the report (June 28, 2022) from the Chief Financial Officer and Treasurer, and Chief Planner and Executive Director, City Planning to exempt from the payment of development charges up to one residential dwelling unit or dwelling room located on a property with a Place of Worship, provided that the unit is to be used for residential purposes by the religious leader of such place of worship, and that any outstanding development charges payable for the dwelling unit at 4640 Kingston Rd (2019.MM5.29) proceeding under building permit number 17 196522 be forgiven.

4. City Council authorize the City Solicitor to make such stylistic and technical changes to the Development Charges By-law as may be required.

5. City Council adopt the Development Charges Background Study dated April 2022, and the Development Charges Background Study Addendum dated June 2022 (together the "Development Charges Background Study") included as Attachments 2 and 3 to the report (June 28, 2022) from the Chief Financial Officer and Treasurer, and Chief Planner and Executive Director, City Planning, including the development-related capital program and asset management plan contained within, subject to annual review through the City's normal capital budget process and ongoing asset management strategy.

6. City Council adopt the following for the purposes of complying with the Development Charges Act:

a. City Council determine that no further public meeting is required pursuant to section 12 of the Development Charges Act;

b. City Council express its intent that the future excess capacity identified in the Development Charges Background Study shall be paid for by the development charges contemplated in the Development Charges Background Study, or other similar charges;

c. City Council adopt the Transit development charges capital program, as included in the Development Charges Background Study, as the planned level of service, and in doing so indicate that City Council intends to ensure that the increase in service for transit will be met; and

d. City Council, after having considered the use of more than one development charge by-law to reflect different needs for services in different areas, determine that the charges be calculated on a municipal-wide uniform basis.

7. City Council authorize the Chief Financial Officer and Treasurer to amend the site specific Development Charges payment agreements listed in Attachment 5 of the report (June 28, 2022) from the Chief Financial Officer and Treasurer, and Chief Planner and Executive Director, City Planning, in a form satisfactory to the City Solicitor and as amended by Recommendation 8 below, in order to coordinate with the report back on financial incentives in 2023 and to extend the term of the deferral periods for the development charge payment, with all other requirements of the existing agreement to remain in force, such new date being the earlier of:

a. December 1, 2023; and

b. such other dates as set out in the existing agreement.

8. City Council amend Attachment 5 to the report (June 28, 2022) from the Chief Financial Officer and Treasurer, and Chief Planner and Executive Director, City Planning to add the Neshama Hospice, a proposal to construct a new two-storey medical building at 25 Brightwood Street, to the list of site specific Development Charges payment agreements and City Council authorize a deferral of the payment of development charges with the same general terms and conditions, in order to coordinate with the report back on financial incentives in 2023.

9. City Council amend the Interest Policy previously adopted by City Council pursuant to Section 26.2 (3) of the Development Charges Act, pertaining to the "frozen" development charges that applies to Site Plan and Rezoning Applications received, and any building permits issued, after November 1, 2020, and authorize the Chief Financial Officer and Treasurer to apply interest charges:

a. at a rate of 1.25 percent for each complete 30 day period from the date an applicable Site Plan Application or Rezoning Bylaw Amendment is received, until the date of building permit issuance;

b. limited so that the total amount of interest payable when combined with the development charges payable does not exceed the development charges in effect under the City's bylaw at the date of building permit issuance; and

c. that the updated interest rate come into effect on September 1, 2022.

10. City Council authorize the Chief Building Official and Executive Director, Toronto Building to continue to require applicants seeking conditional below-grade permits to enter into a development charges payment agreement, in accordance with the general terms and conditions in Attachment 6 to the report (June 28, 2022) from the Chief Financial Officer and Treasurer, and Chief Planner and Executive Director, City Planning and consistent with current practice.

11. City Council approve the establishment of an obligatory reserve fund account named "Development Charges – Long-Term Care" in Appendix C, Schedule 11 – Development Charges Obligatory Reserve Funds of the City of Toronto Municipal Code Chapter 227, the purpose of which is to provide funding for long-term care capital projects, with criteria set out in Attachment 7 to the report (June 28, 2022) from the Chief Financial Officer and Treasurer, and Chief Planner and Executive Director, City Planning.

12. City Council approve the establishment of an obligatory reserve fund account named "Development Charges – Waste Diversion" in Appendix C, Schedule 11 – Development Charges Obligatory Reserve Funds of the City of Toronto Municipal Code Chapter 227, the purpose of which is to provide funding for waste diversion capital projects, with criteria set out in Attachment 7 to the report (June 28, 2022) from the Chief Financial Officer and Treasurer, and Chief Planner and Executive Director, City Planning.

13. City Council direct the Executive Director, Housing Secretariat, Chief Financial Officer and Treasurer, Chief Planner and Executive Director, City Planning to support the implementation of HousingTO 2020-2030 by initiating a Rental Housing Opportunities Roundtable to engage on short-term pressures, current constraints and future opportunities affecting secure market and affordable rental supply, including representatives from all orders of government, private and non-profit rental developers and operators, and reporting back on potential actions in the first quarter of 2023.

14. City Council request the Federal and Provincial governments take urgent action to avoid the loss of rental housing supply currently in development, and to engage with the City's Rental Housing Opportunities Roundtable to consider additional measures and incentives ensuring sufficient purpose-built rental housing supply in Toronto.

The Executive Committee held a statutory public meeting on July 12, 2022, and notice was given in accordance with the Development Charges Act.

The Province of Ontario has introduced legislative changes to the Development Charges Act and Planning Act which necessitates the City review and update of three of its growth-related funding tools (GFTs):

- Development Charges (DCs),

- Community Benefits Charges (CBCs); and

- Alternative Parkland Dedication Rate.

This report is one of three being presented to City Council concurrently and recommends a DC bylaw and related Background Study, prepared by an expert consultant, Hemson Consulting Ltd. for consideration at a statutory public meeting, in compliance with provincial legislation. The recommended approach incorporates feedback from consultation with various stakeholders and city staff.

The City is updating its growth-related funding tools (GFTs) in response to provincial legislative changes that take effect on September 18, 2022. A key principle for growth-related funding tools (GFTs) is that growth pays for growth to ensure services and infrastructure are provided to create complete communities as the City grows. While there are some positive changes made to the development charges (DC) legislation, development charges (DCs) do not fully recover the cost of growth due to legislative restrictions such as statutory exemptions and the development charges (DC) service level cap. The focus of the growth-related funding tools (GFT) review has been on meeting the legislative requirements to bring forward the bylaws so that the City’s financial sustainability is not unduly impacted.

Amendments to the Development Charges Act revise the background study methodology, increase levels of exemptions, and impact the collection process. While some positive changes are introduced through Bills 108 and 197, certain restrictions remain such as the historical service level cap that do not allow for full recovery of growth-related capital costs.

As a funding tool, development charges (DCs) remain the City's primary means to support growth-related capital projects. development charges (DCs) are designed by legislation to specifically fund the portion of new capital projects that are needed to serve growth. Toronto is expected to continue as one of the fastest growing cities in North America, projected to grow to a minimum of approximately 3.65 million people by 2051.

High levels of growth require comparable levels of investment in infrastructure to serve new residents and new employment. This is evident in the development charges (DC) Background Study, which demonstrates a significant increase in growth-related capital over the next 10 and 20 years, primarily driven by an increased need in housing, transit and roads infrastructure.

Of the $67.0 billion capital forecast outlined in the development charges (DC) Background Study over the 10 and 20 year study planning period, $14.9 billion (22%) is related to growth and eligible for development charges (DC) recovery. This forecast includes funding for capital facilities and infrastructure, such as roads, transit, water, parks, community centres and libraries, enabling the City to invest in, and provide infrastructure and services needed to serve growing communities.

The level of growth related capital investments outlined in the development charges (DC) Background Study results in a rate increase of 46% for residential developments, and 40% for non-residential developments. Recommended adjustments to development charges (DC) rates reflect updates to the capital programs and upward inflationary pressures on construction costs. The rates presented in this report are the calculated rates based on the development charges (DC) Background Study and reflect the maximum recoverable amounts permitted by the legislation.

In developing the policy recommendations, stakeholder input was considered along with a preliminary impact analysis, current economic conditions, and the growth-related infrastructure needs in the City. The City is providing a measured implementation process which balances the impacts on new development by gradually phasing in rate increases over time, while supporting city-building objectives, including investing in infrastructure and services, encouraging the growth in housing supply overall and supporting the delivery of affordable housing. As part of further work, staff will continue to engage City Divisions and stakeholders and report back in 2023 on various matters, including a framework and review of financial incentives as part of the long term fiscal plan conversation.

The Executive Committee recommends that:

1. City Council adopt the Community Benefits Charge By-law in Attachment 1 to the report (June 27, 2022) from the Chief Financial Officer and Treasurer, and the Chief Planner and Executive Director, City Planning.

2. City Council authorize the City Solicitor to make such stylistic and technical changes to the Community Benefits Charge By-law as may be required.

3. City Council endorse the Community Benefits Charge Strategy dated April 2022 and Community Benefits Charge Strategy Addendum dated June, 2022 included as Attachments 2 and 3 to the report (June 27, 2022) from the Chief Financial Officer and Treasurer, and Chief Planner and Executive Director, City Planning.

4. City Council approve the establishment of a Reserve Fund Group named "Community Benefits Charges Reserve Fund Group" in Appendix C, Schedule 12 – Planning Act Obligatory Reserve Funds in the City of Toronto Municipal Code Chapter 227, Reserves and Reserve funds, the purpose of which is to hold funds for Community Benefits Charges, with separate accounts consisting of the original Section 37 Reserve Fund to be renamed "Community Benefits – Original Section 37 Reserve Fund" and the new "Community Benefits Charges Reserve Fund", with policies and criteria set out in Attachment 5 to the report (June 27, 2022) from the Chief Financial Officer and Treasurer, and Chief Planner and Executive Director, City Planning.

5. City Council approve the establishment of an obligatory reserve fund named "Community Benefits Charges Reserve Fund" in Appendix C, Schedule 12 – Planning Act Obligatory Reserve Funds in the City of Toronto Municipal Code Chapter 227, Reserves and Reserve Funds, the purpose of which is to hold funds from Community Benefits Charges with criteria set out in Attachment 5 to the report (June 27, 2022) from the Chief Financial Officer and Treasurer, and Chief Planner and Executive Director, City Planning.

6. City Council amend the fee schedule Municipal Code Chapter 441, Fees and Charges, Appendix C, Schedule 11, is amended by deleting the Fee Description in Reference 18, which currently reads "Appraisal Fee for Parks Levy Calculation - Base Fee", and replacing it with "Appraisal Fee for Parks Levy Calculation and/or Community Benefits Charge - Base Fee".

7. City Council amend Municipal Code Chapter 441, Fees and Charges, Appendix C, Schedule 11 by deleting the Fee Description in Reference # 19, which currently reads "Appraisal Fee for Parks Levy Calculation – Variable", and replacing it with "Appraisal Fee for Parks Levy Calculation and/or Community Benefits Charge - Variable".

8. City Council amend Chapter 442, Administration of Fees and Charges by adding the following new Section:

A. All appraisals of land value shall be carried out under the direction of the Executive Director, Facilities and Real Estate and shall be determined in accordance with generally accepted appraisal principles.

B. The cost of any appraisal undertaken by the City shall be paid for by the owner.

C. The cost of any appraisal required pursuant to subsection 37(38) of the Planning Act shall be paid for by the owner.

D. The value of the land shall be determined as of the day before the day of issuance of the first building permit in respect of the development.

9. City Council request the Chief Financial Officer and Treasurer to report back to Council through the City's budgeting process on the cost of growth compared to actual revenues collected through the community benefits charge by-law in order to determine whether the community benefits charge maximum rate is sufficient to ensure that growth pays for growth.

10. City Council request the Province of Ontario to amend the current Section 37 of the Planning Act to permit the municipality to enter into with the owner one or more agreements dealing with the provision of in-kind contributions of facilities, services or matters as permitted under subsection (6), and that any agreement entered into may be registered against the land to which it applies and the municipality is entitled to enforce the provisions thereof against the owner and, subject to the provisions of the Registry Act and the Lands Titles Act, any and all subsequent owners of the land.

11. City Council direct the City Solicitor to take all available steps to ensure that as many zoning by-laws containing Section 37 contributions are adopted by Council or approved by the Ontario Land Tribunal prior to the adoption of the community benefits charge by-law as possible, if in the City Solicitor's discretion the appropriate legal mechanisms are in place to secure the provision of the Section 37 benefits. 

The Province of Ontario introduced legislative changes to the Planning Act and Development Charges Act which necessitates the City to review and update of three of its growth-related funding tools (GFTs):

- Development Charges (DC);

- Community Benefits Charge (CBC); and

- Alternative Parkland Dedication Rate.

This report is one of three being presented concurrently to City Council for consideration and recommends a CBC bylaw and strategy in compliance with provincial legislation. The recommended approach incorporates feedback from consultation with various stakeholders and city staff.

The Community Benefits Charge (CBC) is set out in the new Section 37 provisions of the Planning Act replacing the current authority to permit increased height and/or density in return for the provision of a benefit or cash contribution ('Density Bonusing'), which expires on September 18, 2022. The new Section 37 authorizes a municipality to collect Community Benefits Charges (CBCs) against land to pay for the capital costs of facilities and services required as a result of development or redevelopment. The City is required to enact a Community Benefits Charge (CBC) bylaw, supported by a Community Benefits Charge (CBC) strategy, before it can collect Community Benefits Charges (CBCs).

The Community Benefits Charge (CBC) applies a maximum standard rate to developments that have at least 5 storeys and 10 or more residential units, provided they are not exempt by statute or bylaw, the latter of which may be determined by Council. Previously, Section 37 Density Bonusing was determined on a site by site negotiation, guided by Official Plan policies and Council adopted guidelines. The new Section 37 Community Benefits Charge is based on the appraised value of the land and restricted so that the charge cannot exceed four percent of land value at the time a building permit is issued.

Based on an assessment of applications in the City’s development approval pipeline and projected land values, it is anticipated that the changes to Section 37 will result in the City collecting significantly less revenues than the current Section 37 Density Bonusing approach, notwithstanding that the Community Benefits Charge (CBC) may apply to a wider range of developments. While the intention of growth-related funding tools (GFTs) is that growth should pay for growth, the four percent cap for the Community Benefits Charge (CBC) is not sufficient to fully offset Community Benefits Charge (CBC) eligible growth-related capital costs. Based on the growth forecast, the City anticipates it will recover an average annual amount of $70 million each year over the next 10 years through Community Benefits Charges (CBCs), before the proposed exemptions and transition discussed in the report. However, the Community Benefits Charge (CBC) Strategy estimates the City will require upwards of $2.3 billion in Community Benefits Charge (CBC) eligible net costs over the same 10 year timeframe as a result of eligible development. This leaves the City with a remaining funding gap of almost $1.6 billion.

A municipality may by bylaw collect Community Benefits Charges (CBCs) against land to pay for the capital costs of facilities, services and matters required because of development or redevelopment in the area to which the by-law applies. Accordingly Community Benefits Charges (CBCs) can be used to fund a broad list of services and facilities as outlined in the Community Benefits Charge (CBC) Strategy in Attachment 2. Each year, the City must allocate or spend at least 60% of the special account, where all Community Benefits Charge (CBC) funds are collected and held. To ensure compliance with this requirement, allocation to specific capital projects and initiatives will be reviewed and recommended through the annual budget process.

The Community Benefits Charge (CBC) approach recommended by staff also provides additional incentives for affordable housing programs by exempting in the Community Benefits Charge (CBC) Bylaw both Housing Now developments, including market units and Affordable Housing units secured through a municipal housing facility agreement from a Community Benefits Charge (CBC) payment. In addition, complete applications for residential development in the City's development pipeline that are less than 10,000 square metres will not be subject to the Community Benefits Charge (CBC). The above policies that advance City priorities and protect development projects in the pipeline are estimated to further reduce anticipated Community Benefits Charge (CBC) revenues initially by about $36 million annually.

To authorize use of the new Community Benefits Charge (CBC) authority by September 18, 2022, which is the expiration of the current Section 37 Density Bonusing regime, this report recommends adoption of a Community Benefits Charge (CBC) Bylaw; endorsement of the Community Benefits Charge (CBC) Strategy; amendments to the Municipal Code to include the Community Benefits Charge (CBC) appraisal fee; and establishment of the legislatively required Community Benefits Charge (CBC) reserve fund. In the next phase, further work on implementation, including allocation and resourcing, will continue and will be brought to City Council in 2023. 

The Executive Committee recommends that:

1. City Council direct the General Manager, Parks, Forestry and Recreation and the Chief Planner and Executive Director, City Planning to continue stakeholder and public consultation on an updated Alternative Parkland Dedication Rate, including continued consultation on a density-responsive alternative parkland dedication approach and parkland need in the context of Bill 109's changes to the Planning Act and report back with final recommendations in the second quarter of 2023. 

2. City Council amend the Official Plan substantially in accordance with Official Plan Amendment 588 City-wide Alternative Parkland Dedication Rate, in Attachment 1 to the supplementary report (July 11, 2022) from the General Manager, Parks Forestry and Recreation and Chief Planner and Executive Director, City Planning.

3. City Council amend the City of Toronto Municipal Code Chapter 415, Development of Land, substantially in accordance with the draft Parkland Dedication By-law in Attachment 2 to the report (June 27, 2022) from the General Manager, Parks Forestry and Recreation and Chief Planner and Executive Director, City Planning and as amended by Recommendation 4, below.

4. City Council amend the draft Parkland Dedication By-Law included as Attachment 2 to the report from the General Manager, Parks, Forestry and Recreation and the Chief Planner and Executive Director, City Planning by inserting the following clauses:

a. insert the following in section 415-21. Definitions.:

HOUSING NOW DEVELOPMENT – Development of affordable and market rental housing on City-owned lands under a long term lease and related development of ownership homes, if any, on City-owned lands sold to a developer, provided all such development occurs as part of the Housing Now Initiative.

HOUSING NOW INITIATIVE - The initiative originally approved by Council through the adoption of Item CC1.3 on December 4, 5 and 13, 2018 and Item EX1.1 adopted January 20 and 31, 2019 to increase the supply of affordable housing by leveraging the value of underutilized City-owned lands.

MUNICIPAL HOUSING PROJECT FACILITY - The class of municipal capital facilities prescribed by paragraph 18 of subsection 2(1) of Ontario Regulation 598/06, and as further defined in the City's Municipal Housing Facility By-law 183-2022, as such by-law may be amended or replaced from time to time.

MUNICIPAL HOUSING PROJECT FACILITY AGREEMENT - An agreement entered into pursuant to section 252 of the City of Toronto Act for the provision of a Municipal Housing Project Facility; 

b. insert the following in section 415-30. Exemptions.:

Affordable rental housing units secured under a Municipal Housing Project Facility Agreement;

Housing Now Development projects;

The residential component of a building with no more than four dwelling units.

5. City Council authorize the City Solicitor to make such stylistic and technical changes to the draft Official Plan Amendment and the draft Parkland Dedication By-law as may be required.

6. City Council direct the Executive Director, Housing Secretariat to amend the Home Ownership Assistance Program to include deferral of cash-in-lieu of parkland dedication, and to facilitate this amendment direct the General Manager, Parks, Forestry and Recreation to accept cash in lieu of parkland in connection with affordable ownership units that will be subject to a Home Ownership Assistance Program agreement; and Council direct the Executive Director, Housing Secretariat to consider the impact of the Home Ownership Assistance Program as amended by City Council's decision on this Item and other City incentives in the current review of the City's Affordable Home Ownership Program.

7. City Council request the Province of Ontario to amend Section 42 of the Planning Act to permit the municipality to require the owner to enter into one or more agreements with the municipality dealing with the conveyance of parkland as required by this section and that any agreement entered into may be registered against the land to which it applies and the municipality is entitled to enforce the provisions thereof against the owner and, subject to the provisions of the Registry Act and the Lands Titles Act, any and all subsequent owners of the land. 

The Executive Committee held a statutory public meeting on July 12, 2022, and notice was given in accordance with the Planning Act.

The Province of Ontario has introduced legislative changes to the Planning Act which requires the City to review and update three of its growth-related funding tools (GFTs):

-  Development Charges (DC);

- Community Benefits Charges (CBC); and

- Alternative Parkland Dedication Rate.

This report is one of three reports on the individual GFTs being presented to City Council for concurrent consideration. Staff have developed recommendations related to the GFTs through an integrated and comprehensive approach to funding growth which incorporates engagement feedback.

This report recommends a phased approach to the consideration and implementation of a new alternative parkland dedication framework, including interim re-enactment of the City's current alternative parkland dedication by-law in 2022, continued engagement on staff's proposed approach and analysis of the impacts of Bill 109's legislative changes through early 2023 and presentation of a new by-law in the second quarter of 2023.

In accordance with provincial legislation, the City must adopt a parkland dedication by-law before September 18, 2022, to be able to apply an alternative parkland dedication rate. The Planning Act's standard parkland dedication rates of 5% for residential uses and 2% for non-residential uses remain unchanged as a result of provincial legislative changes.

Toronto's park system plays an essential role in supporting a healthy, equitable, competitive and livable city, and helps to make communities more resilient to contemporary challenges, from climate change to COVID-19. Parkland dedication resulting from development projects is an important tool for growing and improving Toronto's park system.

Under the current by-law, population growth significantly outpaces growth of the city's parkland system. As a result, Toronto's parkland provision per provision is declining rapidly, especially in high-growth areas. This decline has negative impacts on the park system, putting more pressure on existing parks, increasing operating and maintenance costs, potentially resulting in user and programming conflicts, and making it more difficult to locate and build new recreational facilities. An updated alternative parkland dedication framework will better position the City to respond to the strains of growth on the parkland system and ensure that these green spaces can support a healthy, resilient Toronto in the decades ahead.

Since Bill 197 was enacted in 2020, City staff have undertaken detailed analysis of present and future parkland need and provision across Toronto's varied geography. This analysis has informed the development of a proposed density-responsive parkland dedication framework that is oriented to the growth resulting from development projects. This approach links new residents and parkland need with the delivery of new parkland, no matter the form of development.

Late in the process of developing and consulting on the updated alternative parkland dedication framework, the Province introduced legislation, Bill 109, More Homes for Everyone Act, which made further changes to the parkland dedication legislative framework in the Planning Act. Bill 109's changes reduce the alternative parkland dedication rate for sites designated by the Province as transit-oriented communities relative to the current alternative rate and obligate Ontario municipalities to accept encumbered parkland. The rates established through Bill 109 lock in a site-based parkland dedication approach contrary to staff's proposed density-responsive approach. The Bill received Royal Assent on April 14, 2022. Bill 109's significant changes to parkland dedication legislation necessitate further analysis to understand the potential impact on parkland dedication and parkland need over the medium term, given the number and importance of "transit-oriented community lands". To this end, this report recommends continued engagement on the proposed density-responsive parkland dedication approach through early 2023 in anticipation of a final report to City Council in the second quarter of 2023.

As an interim measure to ensure continued application of an alternative rate, this report recommends that City Council re-adopt the City's current alternative parkland dedication by-law. Recommendations at this stage include an Official Plan Amendment (Attachment 1 of this report) and a reimplementation of the current Parkland Dedication By-law inclusive of the statutory requirements stemming from Bill 109's changes to the Planning Act. (Attachment 2). The policies in the Official Plan Amendment conform to the Growth Plan for the Greater Golden Horseshoe, 2020 and are consistent with the Provincial Policy Statement, 2020.

In developing the policy recommendations, several factors were considered including:

· Infrastructure needs to service the growth in residents

· Results of the preliminary impact analysis that indicated although GFTs are not a primary driver of housing prices, current economic conditions with increasing inflation and construction costs (which the City also faces in its infrastructure projects) warrants a measured implementation of the new rates to mitigate the impact of rate changes on new development

· Feedback from public, community and industry stakeholders

As part of further work, staff will continue to engage City Divisions and stakeholders and report back in 2023 on the proposed density-responsive parkland dedication approach and related matters.

At its meeting on July 12, 2022, Executive Committee will consider a report related to the Alternative Parkland Dedication Rate. The report includes recommended amendments to the City of Toronto Municipal Code and the Parkland Dedication By-law as well as associated amendments to the Official Plan.

The report recommends a phased approach to the implementation of a new alternative parkland dedication framework, including interim re-enactment of the City's current alternative parkland dedication by-law in 2022, continued analysis and engagement through early 2023 and presentation of final recommendations in the second quarter of 2023.

This supplementary report recommends modified amendments to the Official Plan that add a new policy required to address the parkland rates for lands designated transit-oriented communities as required by the recent legislative changes in Bill 109.  The remainder of the parkland policies in the Official Plan remain in their current form.

The Executive Committee recommends that:

1. City Council endorse the Priority Downtown Parks and Public Realm Work Plan as summarized in Attachment 1 to the report (June 24, 2022) from the Chief Planner and Executive Director, City Planning and General Manager, Parks, Forestry and Recreation, and direct the Chief Planner and Executive Director, City Planning and the General Manager, Parks, Forestry and Recreation, in consultation with the General Manager, Transportation Services, General Manager, Economic Development and Culture, Executive Director, Corporate Real Estate Management, and other Divisions and Agencies, as appropriate, to report back to City Council on individual projects at major milestones, including on finalized project costs and a financial strategy, to inform future budget submissions for relevant City Divisions.

2. City Council direct the Chief Planner and Executive Director, City Planning, General Manager, Transportation Services and General Manager, Parks, Forestry and Recreation, in consultation with other Divisions and Agencies as appropriate, to report back to the Infrastructure and Environment Committee and City Council in the third quarter of 2023 on opportunities and priorities for future Bentway expansion sites (under and adjacent to the Gardiner Expressway) between Dufferin St and Spadina Ave (such as and inclusive of the Bentway Bridge/Landing), including:

a. recommendations on the City’s role to support The Bentway Conservancy in operations, programming, fundraising, and design and construction of future expansion sites; 

b. coordination and alignment with the planned rehabilitation of the Gardiner Expressway deck; and

c. estimated project costs and a financial strategy to explore how The Bentway’s expansion projects can be included, where appropriate, in the City’s 10-year Capital Budget and Plan as part of a future budget process.
 

3. City Council direct the General Manager, Parks, Forestry and Recreation in consultation with other relevant Divisions, to report to the Executive Committee in 2023 on options to speed up the delivery of the Bathurst Quay and University Avenue parks; including phasing the University Avenue project by focusing on the northern section first.

This report responds to an October 2021 City Council direction to Parks, Forestry and Recreation, City Planning, Transportation Services, and Economic Development and Culture, to collaboratively advance the City Council-approved TOcore Downtown Parks and Public Realm Plan and, in particular, a direction to identify opportunities to secure large parks in and adjacent to the Downtown.

The report presents three priority large parks and public realm opportunities in the Downtown recommended to be developed through further due diligence, planning and consultation: Bathurst Quay signature waterfront park, Rail Corridor Public Realm Master Plan and University Avenue / Queen's Park Crescent.

These three projects advance the implementation of "Transformative Ideas" in the TOcore Downtown Parks and Public Realm Plan (PPRP). They will support the City's recovery and rebuild by fostering economic development and private and public investment, improving quality of life in growing high-density residential and employment districts and transforming Toronto's public spaces.

The report seeks Council direction to proceed with the recommended Priority Downtown Parks and Public Realm Work Plan outlined in Attachment 1 to this report, which includes a series of immediate next steps related to ongoing due diligence, technical studies, and stakeholder consultation; and proposed near, medium and longer-term stage-gated milestones for advancing these generational opportunities over a ten-plus year work plan.

The three Priority Downtown Parks and Public Realm Projects include the following initiatives, as described in further detail in Attachment 1:

- Bathurst Quay signature waterfront park: advancing Council directions contained in both the Bathurst Quay Neighbourhood Plan and PPRP, and building on the momentum of ongoing revitalization projects in the Bathurst Quay neighbourhood, this significant new waterfront park will transform the under-utilized City-owned Spadina Quay parking garage (539 Queens Quay West) and adjacent Portland Slip water lot properties. The consolidation of these two properties creates an opportunity to construct an approximate 1.3 hectare (3 acre) signature new park at a central and highly accessible waterfront location. The construction of a new park at this location will also serve to link together a network of existing and emerging park and community assets in the surrounding area, including the Toronto Music Garden, the revitalized Canada Malting property , Ireland Park, the Corleck arts centre, the Waterfront Neighbourhood Centre and Little Norway Park. City staff are recommending that this project advance in the near term, in support of a planned closure and decommissioning of the existing Spadina Quay parking garage, and plans to create decking over a portion of the Portland Slip water lot.

- Rail Corridor Public Realm Master Plan: this forward-looking vision and strategic document will proactively guide the City's planning and negotiation efforts in response to various possible 'decked' and/or 'overbuild' park, public realm and connection opportunities over and adjacent to the rail corridor in the downtown core - from Fort York in the west to Union Station in the east. Building on previous analysis, this planning exercise is proposed to commence in the near term, with results used to guide potential partnerships with private-sector and institutional landowners, setting the framework for the phased and coordinated construction of a connected rail corridor park and public realm network over a medium-to-longer-term build-out.

- University Avenue / Queen's Park Crescent: A reimagined University Avenue and Queen's Park Crescent will provide a continuous linear public space and green connection between Downtown's Financial and Health Science Districts, Queens' Park, and the University of Toronto. This transformative opportunity is contemplated as a longer-term and potentially incremental endeavour. This report recommends a work plan to expand upon the foundational work that is already underway in order to protect and assess this opportunity, including an engagement strategy, a capital project coordination strategy for all public and private sector projects throughout the project area, and a Cultural Heritage Evaluation. This next phase is proposed to commence in the near term, with results used to inform future planning and capital project development, leading to a phased approach towards potentially implementing the University Avenue Transformation concept envisioned in the PPRP.

A stage-gated work plan approach, with realistic and achievable milestones, set according to near-term (under 5 years), medium-term (5-10 years) and longer-term (10+ years) time periods, will ensure that City Council direction is secured at appropriate decision points and that these transformative opportunities are aligned and implementation-ready when external constraints are addressed and resources are allocated. Further strategic capital planning among City Divisions will identify alignment and interdependencies of divisional projects in order to realize project delivery efficiencies and to minimize disruption.

The Executive Committee recommends that:  

1. City Council authorize the City Manager, and any other relevant City Officials, in consultation with the Chief Executive Officer, Toronto Transit Commission, to finalize negotiations, enter into and execute an Eglinton Crosstown Light Rail Transit - Train Operating and Funding Agreement with Metrolinx and the Toronto Transit Commission, based on the Term Sheet set out in Attachment 1 to the report (June 29, 2022) from the City Manager, and any such necessary ancillary or related agreements, amendments and renewals (including with any other relevant parties), all substantially in accordance with the Term Sheet and on such other terms and conditions satisfactory to the City Manager and the Chief Financial Officer and Treasurer and any other relevant officials, and in a form satisfactory to the City Solicitor.

2. City Council forward this report to the Toronto Transit Commission Board.

The Eglinton Crosstown Light Rail Transit (ECLRT) is a 19-kilometre light rail transit line that will run along Eglinton Avenue between Mount Dennis Station and Kennedy Station, with 25 stations and stops that will link to over 50 bus routes, three existing subway stations and various GO Transit lines. Metrolinx has ownership of the ECLRT and is funding and delivering the project, as established by the 2012 LRT Master Agreement. The City will fund operations and day-to-day maintenance (i.e., non-lifecycle maintenance) and the TTC will operate the ECLRT. At this time, Metrolinx anticipates that the ECLRT will reach substantial construction completion by late 2022.

A clear understanding and agreement between the City, TTC and Metrolinx on funding obligations, approvals, dispute resolutions and decision-making processes is critical to the successful implementation and operation of the ECLRT. This report recommends terms negotiated by City and TTC staff with Metrolinx that will govern the funding, operations and maintenance of the ECLRT. The proposed terms expand on the 2021 Revised Agreement in Principle, by outlining the details of the City's funding obligations, the TTC's operating performance and maintenance requirements, revenue and payment processes, renewal and dispute terms, and liabilities and remedies for non-fulfillment of obligations. The terms for operating and maintenance of the ECLRT will be established in a Train Operating and Funding Agreement.

This report seeks City Council authority to execute an ECLRT Train Operating and Funding Agreement with the TTC and Metrolinx based on the key terms identified in this report and set out in Attachment 1.

The Executive Committee recommends that:

1. City Council adopt the City of Toronto Commemorative Framework, consisting of:

a. the Guiding Principles for Commemoration in Attachment 1 to the report (June 27, 2022) from the City Manager, as amended by Recommendation 2 below:

b. the revised City of Toronto Street Naming Policy in Attachment 2 to the report (June 27, 2022) from the City Manager;

c. the revised City of Toronto Property Naming Policy in Attachment 3 to the report (June 27, 2022) from the City Manager; and

d. the revised City of Toronto Public Art and Monument Donations Policy in Attachment 4 to the report (June 27, 2022) from the City Manager.

2. City Council amend the Guiding Principles for Commemoration in Attachment 1 to the report by adding "members of the Asian and South Asian community" to the list of equity-deserving groups in section 4 headed "Prioritize commemorations significant to Indigenous Peoples, Black communities, and equity-deserving groups".

3. City Council add "members of the Asian and South Asian community" to any definition of an equity-deserving group in the Commemorative Framework Policies.

4. City Council request City Agencies and Corporations to adopt and follow the Guiding Principles for Commemoration, included as Attachment 1 to the report (June 27, 2022) from the City Manager, when assigning commemorative names to properties, as amended by Recommendation 2 above. 

5. City Council authorize staff to resume processing applications to name or rename streets or City properties received since October 1, 2020, using the criteria in the City of Toronto Commemorative Framework, effective as of City Council's decision on this item.

6. City Council authorize staff to process applications to name or rename streets or City properties received prior to October 1, 2020, using the criteria in the City of Toronto Street Naming Policy and the City of Toronto Property Naming Policy adopted by City Council in July 2015 in Item 2015.EX7.8.

7. City Council lift the moratorium on accepting applications as of November 1, 2022, and authorize staff to resume accepting new applications to name or rename streets or City properties.

8. City Council request the City Manager to report back to the Executive Committee with a status update on the City of Toronto Commemorative Framework one year after implementation.

This report responds to direction from City Council to develop a new framework to guide how the City commemorates public figures and events in monuments, street names, and property names. The development of this framework is a core component of the ongoing Recognition Review project, which was initiated following receipt of the Dundas Street renaming petition by City Council. The Recognition Review seeks to understand how street names, property names and monuments have shaped an understanding of public history, and develop strategies to better represent the city's history and diversity in the public realm.

The new Commemorative Framework recommended in this report is intended to provide additional guidance to support members of the public, Elected Officials, and City staff when naming and renaming streets and City properties in a commemorative manner, and when considering proposals to develop new and review existing commemorative monuments. The proposed framework is based on the City’s research on best practices from other cities around the world, and with input from close to 12,000 residents gathered through a virtual town hall and panel discussion, public surveys, and community dialogues with Indigenous rights holders, urban Indigenous community members, Black community members, and equity-deserving groups.

The Commemorative Framework includes:

- New Guiding Principles for Commemoration, outlining best practices and considerations for engaging communities in a meaningful way in commemoration; and for further diversifying the range of stories told through Toronto's monuments, street names, and property names. The principles include:

1. Be informed by historical research, traditional knowledge, and community insights;

2. Be supported by communities through meaningful engagement;

3. Honour Indigenous ways of knowing and being;

4. Prioritize commemorations significant to Indigenous Peoples, Black communities, and equity-deserving groups;

5. Connect to Toronto, Ontario or Canada's histories and cultures; and

6. Share knowledge and stories behind commemorations.

- Amendments to existing policies related to commemoration, including the Street and Property Naming Policies and the Public Art and Monument Donations Policy, to incorporate the guiding principles into assessment criteria for commemorative name and monument selection. The amendments also outline steps for implementation, including an expanded role for the Economic Development and Culture Division to assess proposals for new commemorations and review existing commemorations in partnership with communities and other relevant City Divisions.

- A recommended process for responding to requests from the public to review monuments, street names and property names based on their historical legacy, setting out clear criteria to assess a proposal and identifying potential responses for consideration that could include renaming, removing, or re-interpreting an asset, or concluding that no action is required.

Names and symbols in public spaces matter. They help to cultivate a sense of belonging, well-being, and connectedness for all, especially in support of Indigenous Peoples, Black communities, and equity-deserving groups. They also speak to what the City and community feel is important and worthy of celebration, documentation and commemoration. By developing and implementing a more intentional, community-centered approach to naming and commemoration, the City can help to build a more welcoming Toronto. The Recognition Review project is just one of the ways that the City is working to achieve this vision, alongside Council-approved strategies for system-wide change such as the City's Reconciliation Action Plan, the Toronto Action Plan to Confront Anti-Black Racism and the Toronto Newcomer Strategy, and significant investments in affordable housing and community safety.

If adopted by City Council, the new Commemorative Framework will be used to inform the selection of new names for Dundas Street and other properties named after Dundas. The City has convened a Community Advisory Committee made up of 20 Black and Indigenous community leaders and other diverse residents living and working along Dundas Street to develop a shortlist of new names. Recognizing the importance of having the new Framework in place to guide the Committee's deliberations, and the need for sufficient time for meaningful engagement and research into naming options, staff now propose to report to Council in early 2023 with recommendations for new names for Dundas Street and other civic properties named for Henry Dundas. This change in timing is supported by the Community Advisory Committee.

The Executive Committee recommends that:  

1. City Council direct the City Manager, in consultation with the Deputy City Manager, Community and Social Services and Executive Director, Housing Secretariat to report to City Council by the end of the first quarter of 2023 with a proposed Terms of Reference for a new Council Advisory Committee to support the City's goals set out in the Toronto Housing Charter and HousingTO Plan for the progressive realization of the right to adequate housing, within its jurisdiction.   

2. City Council request the Toronto Ombudsman to consider the report and Attachment 1: Crean and Maytree's Report to the report (June 27, 2022) from the City Manager on a Toronto Housing Commissioner, and report to City Council in 2023 with their review and recommendations related to the resources and structure required for their Office to focus on investigations and reports related to systemic housing discrimination and systemic hurdles in the City of Toronto's housing planning and service delivery roles, including consideration of a dedicated Deputy Ombudsman, Housing.

3. City Council direct the Deputy City Manager, Community and Social Services, in consultation with the City Manager, Ombudsman and new Council Advisory Committee referenced in Recommendation 1 above, if established, to develop an approach including possible procurement of external expertise, to provide Council with independent assessments of the City’s progressive realization of the right to adequate housing outlined in the HousingTO 2020 – 2030 Action Plan at the halfway and end points of the 10-year Action Plan.

4. City Council direct the Executive Director, Housing Secretariat, in consultation with the Deputy City Manager, Community and Social Services, to procure and implement a program of human rights training on housing for senior leaders and policy staff in housing-related City divisions, agencies and corporations listed in Section D of this report to enhance the City’s capacity to apply a human rights lens to housing policy development and service delivery, and support the City's Toronto Housing Charter objectives.

5. City Council request the Mayor to send a letter to the Federal Housing Advocate requesting that the impact of federal policies and programs and a review of systemic housing hurdles experienced by Torontonians be a priority focus for that Office.

6. City Council direct the Executive Director, Housing Secretariat, in consultation with Chief Executive Officer of Toronto Community Housing Corporation and Chief Executive Officer of Toronto Seniors Housing Corporation, review the role and function of the Office of the Commissioner of Housing Equity during the two-year interim period where the Office of the Commissioner of Housing Equity will report to both housing corporation boards, considering its original mandate when it was created by Toronto Community Housing Corporation, its transformation over time including the creation of the Toronto Seniors Housing Corporation, and report back to City Council and the Boards of Toronto Community Housing Corporation and Toronto Seniors Housing Corporation in 2024 on the results of the review.

Housing is a central focus for the City of Toronto as it is for municipalities across Ontario and Canada. With the adoption of the HousingTO 2020-2030 Action Plan ("HousingTO Plan") in 2019, Toronto established a blueprint for action to improve housing outcomes for residents across the housing continuum. From the provision of emergency shelters and homelessness services to managing the social housing system, the City is working with other governments to provide supportive housing and associated wrap-around assistance such as for mental health and addictions, ensure more affordable rental housing development, deliver long-term care and advance other policies and incentives related to improving the quality and affordability of housing.

Toronto Housing Charter

With the adoption of the updated Housing Charter, and the implementation of the HousingTO Plan in 2019, the City committed to further the progressive realization of the right to adequate housing and to work towards a human rights-based approach to housing. City Council also directed the City Manager to report back with options for the role or function of a Housing Commissioner that would independently assess the implementation of the Charter and the HousingTO Plan and ensure that the City, within its legislative authorities, programs and policies, was taking concrete actions to combat systematic housing discrimination and address systemic hurdles in the housing system.

External Experts' Review

In response to City Council's direction, the City Manager engaged external expert consultants to inform this report's options and considerations. Fiona Crean, the City's former Ombudsman, and Maytree Foundation were retained to consider the national and international human rights context of the progressive realization of the right to housing, review governance models with consideration of Toronto’s governance and intergovernmental context and consult persons with lived experience on homelessness and housing instability, legal and human rights experts, elected officials, public servants, academics, and housing service providers. The consultants' findings are included as Attachment 1: Crean and Maytree's Report on a Toronto Housing Commissioner.

Crean and Maytree's report summarized their research, community engagement, analysis and findings, and outlined opportunities for the City to establish the role or function of a Housing Commissioner. Their recommendations include:

- Create a locus of accountability to advance the progressive realization of housing as a basic human right;

- Focus housing policy development and delivery of services through a human rights lens;

- Ensure evidence-based monitoring, using data that are disaggregated by race, gender, age, income, and other variables to determine the impacts of policies and programs on the rights of residents with lived experience of housing precarity and homelessness;

- Provide advice to Council from experts and community members with lived experience and expertise in a human rights-based approach to housing;

- Enable an “all of government” approach with expertise in a human rights-based approach to housing;

- Create opportunities for intergovernmental dialogue on a human rights-based approach to housing that benefit from expert input;

- Develop systems competencies and performance metrics on the human rights-based approach to housing for the public service; and

- Deliver a robust human rights learning and development program to equip public servants dealing with housing.

This report recommends a number of related actions to achieve these objectives and criteria identified by the consultants' review which leverage the assets of Toronto's governance system including the role of Council, the public service, Accountability Officers and City agencies and corporations.

Toronto's Accountability Framework and the Federal Housing Advocate

In considering Toronto's options, Crean and Maytree reviewed Toronto's Accountability Framework, including the legislative powers provided to Accountability Officers through the City of Toronto Act, 2006 (COTA). Crean and Maytree also reviewed the mandate of the Federal Housing Advocate, named in February 2022, which is to monitor and assess the implementation of the National Housing Strategy, analyze research on systemic housing issues within federal jurisdiction and consult members of vulnerable groups with lived experience of precarious housing.

Early engagement and advocacy regarding a Housing Commissioner for Toronto emphasized a role independent of the municipal government, which could only be a position created by the Province, similar to the role of the Ontario Ombudsman for all Ontario municipalities, except Toronto. Later engagement and advocacy focused on the importance of an independent role, which could be similar to the City's Accountability Officers. It is worth noting that the Federal Housing Advocate does not report to Parliament in the manner that accountability roles do, but rather reports directly to a Cabinet Minister, thus is not an independent officer. 

Also worth noting is that Crean and Maytree's report found that several informants, stakeholders and advocates have the view that without federal legislative change and corresponding funding and support, the City’s ability to take the kind of action on a human rights-based approach to housing that is desired, is significantly challenged.

A Complex Housing System

Central to the City Manager's considerations of a Housing Commissioner role or function was a review and analysis of the complexity of the City's context within the broader housing landscape, inclusive of federal, provincial and municipal roles and responsibilities. Toronto's housing system operates in an intricate arrangement of legislative frameworks, authorities and roles for all three governments and for-profit and non-profit sectors. Without the investments and involvement of federal and provincial governments, the City is unable to adequately deliver the diversity of services required to support a growing number of precariously housed and homeless people in Toronto and across the region. Further, the City's ability to achieve its ambitious housing goals, including those in the HousingTO Plan which are estimated to be $27.7 billion to implement over 10 years, is dependent on the support of its intergovernmental partners.

Progressive Realization of the Right to Adequate Housing

The City of Toronto is legislatively responsible for ensuring equity of access for the aspects of the housing services that are within its jurisdiction and mandate. However, the City continues to meet the housing needs of residents even where that responsibility is conditional on the funding and policy tools provided by other orders of government.  For example, following the 1990s realignment of provincial-municipal responsibilities, which transferred a number of housing functions to municipal governments, Toronto provided shelter to the precariously housed, maintained social housing units, and created new affordable and supportive housing opportunities without adequate intergovernmental funding. More recently, with an increase in evictions during the pandemic, the City supported Torontonians through the Toronto Rent Bank. Crean and Maytree's report recognized these actions as part of the City's leadership towards furthering the progressive realization of the right to adequate housing.

Role or Function of a Housing Commissioner

Overall, Crean and Maytree note that a single action, individual or office may not be an effective way to advance Toronto's objectives outlined in the Housing Charter. The City Manager's review of their findings also confirms that a suite of actions delivered in concert with each other is more likely to achieve Council's goals. The City Manager is therefore recommending actions for impact across the City's governance system, including by City Council, City divisions, agencies and corporations, and Accountability Officers, to ensure a robust approach is taken to integrate a human rights-based approach to housing for the City.

Crean and Maytree identified that a locus of accountability is required to oversee the recommended actions, and their options include consideration of the appointment of a Housing Commissioner external to the City's Accountability Officers and the public service. The City Manager has identified that an appointment outside the public service could create confusion between the role of the Housing Secretariat to lead housing system planning and the roles of Deputy City Managers and the City Manager to ensure delivery on Council's housing priorities. The City Manager also considered the role of Toronto's Ombudsman who has legislatively enshrined oversight for investigating issues of fairness, including with respect to housing.

The City Manager recommends the Deputy City Manager, Community and Social Services serve as the locus of accountability to implement the recommendations in this report that are direct to the public service, and that Council also request the Ombudsman to consider the recommendations in Crean and Maytree's report for further review to make recommendations directly to Council. The City Manager has had preliminary conversations with the Ombudsman, and the Ombudsman has provided a letter to the City Manager which accompanies this report as Attachment 3. 

To strengthen the expertise of the public service and support Council's decision-making, it is recommended that Council create a new Council advisory body which could provide direct advice to Council from community members with lived experience of housing instability, as well as academics and advocates with expertise in human rights related to housing. Such a body would be independent of the public service and enable a range of voices and expertise to advise on the progressive realization of the right to adequate housing. Advisory Committees such as Aboriginal Affairs, Confronting Anti-Black Racism, and Accessibility have a strong record of strengthening the City's ability to apply an equity and human rights lens to all aspects of City operations.

In addition, as recommended by Crean and Maytree, the City Manager recommends strengthening the City's capacity to achieve its goals by engaging specific training on applying a human rights lens to housing to supplement the existing City human rights training available to staff and management. Training on a human rights-based approach to housing for City staff in divisions, agencies and corporations, as well as the recommended independent assessment of the City's progress on meeting the Toronto Housing Charter principles, will enable the City to continue to be a leader among municipalities when it comes to furthering the progressive realization of the right to adequate housing as recognized in international law. 

In summary, the City Manager recommends City Council consider:

- Establishment of a new Council advisory committee to provide advice from those with lived experience of housing instability and those with expertise in a human rights-based approach to housing.

- A request to the Toronto Ombudsman to consider the findings of this report and identify resources or structure required for their Office, including a potential role of Deputy Ombudsman, Housing, to focus specifically on housing by leveraging the role of the Office to undertake systemic reviews, investigations and provide independent advice to City Council.

- Ongoing independent evaluation through performance metrics and disaggregated data, leveraging the City's Data for Equity strategy, of the City’s progress towards the Toronto Housing Charter goals and progressive realization of the right to adequate housing.

- Enhanced training for staff involved in housing policy development in relevant City divisions, agencies and corporations on a human rights-based approach to housing, applying a human rights lens to housing policy development and developing a greater understanding of the progressive realization of the right to adequate housing.

- Collaboration with and a request to the Federal Housing Advocate to focus on systemic housing issues in Toronto.

Together, these recommendations provide an opportunity for City Council to continue its focus on collaborating with other governments, applying a whole-of-government approach as required by the Toronto Housing Charter, and implementing multiple pathways to achieve the actions identified in Council's request for the City Manager to consider the role or function of a Housing Commissioner. Implementing these recommendations is key to informing the federal policy landscape and ensuring that changes to the housing system considered by the federal government come with adequate funding and appropriate legislative levers required by Canadian municipalities.

The Executive Committee recommends that:

1. City Council authorize the City Manager to execute a Multi-Party Agreement with the Governments of Ontario and Canada and with Canada Soccer, including any amendments and extensions as required, reflecting the key elements outlined in this staff report and Item EX31.3, on terms and conditions satisfactory to the Chief Financial Officer and Treasurer, and in a form acceptable to the City Solicitor.

2. City Council direct the City Manager to create the FIFA World Cup Toronto 2026 Staff Secretariat, to be fully established by the first quarter 2023, within the Office of the Deputy of City Manager, Community and Social Services, and approve an increase of the 2022 staff complement for the Social Development, Finance and Administration Division by nine (9) temporary positions beginning in 2022 in order to support project planning and preparation. 

3. City Council approve an increase of $1.225 million gross and $0 net to the 2022 Council Approved Operating Budget for Social Development, Finance and Administration, fully funded by the Major Special Event Reserve Fund, for use by the FIFA World Cup Toronto 2026 Staff Secretariat in support of World Cup planning and development requirements.

4. Council approve an increase of $0.048 million gross and $0 net and associated staff complement of one (1) dedicated temporary position to the 2022 Council Approved Operating Budget for Parks, Forestry and Recreation, fully funded by the Major Special Event Reserve Fund, for managing the Division's capital program initiatives related to World Cup hosting, starting in 2022.

5. City Council authorize the Deputy City Manager, Community and Social Services, to negotiate and enter into an agreement with Maple Leaf Sports and Entertainment for activities in support of Toronto's hosting of World Cup 2026, and any amendments and extensions as required, including but not limited to management of temporary and permanent upgrades at the BMO Field and maximization of the value of delegated commercial rights to help offset the City's costs of organizing the World Cup in Toronto, on terms and conditions satisfactory to the City Manager, Deputy City Manager, Community and Social Services, and Chief Financial Officer and Treasurer, and in a form acceptable to the City Solicitor.

6. City Council direct the Deputy City Manager, Community and Social Services, to report to City Council in the first quarter of 2023 to provide an update on overall project management, to include the status regarding funding, intergovernmental negotiations, financial strategy, community engagement and activation of the Staff Secretariat and working groups.

7. City Council direct relevant City Divisions and Agencies to include, in 2023 and future year budget submissions, a multi-year capital and operational budget and plan requirements, including level of staff and investment, timing and funding sources, in planning and hosting the 2026 World Cup.

The FIFA Men's World Cup (World Cup) is the world's most watched sporting event, with a global viewership of four billion people for the entire competition and upwards of 200 million for each match. Overseen by the International Federation of Football Association (FIFA), the World Cup is held every four years and generates significant economic and cultural benefits for host cities. In 2018, the 2026 World Cup was awarded to a joint bid by Canada, Mexico and the United States, with 80 matches to be staged across 16 cities in North America, of which 10 matches are expected to be in Canada.

On June 16, 2022, the City of Toronto was announced as an official Host City for the World Cup 2026. As directed by City Council in April 2022, this report provides a status update including status of negotiations with the Governments of Ontario and Canada, updates on cost estimates, and an implementation plan for the event secretariat required for the successful planning and execution of the 2026 World Cup in Toronto.

Toronto hosting part of the 2026 World Cup will bring global media attention and positive economic and cultural benefits for the city that will sustain COVID–19 recovery in hard hit sectors, such as tourism, hospitality and entertainment. Projected benefits of hosting five matches in Toronto include:

· Estimated $307.0 million dollars of GDP impact;

· 3,300 jobs;

· 174,000 overnight visitors; and,

· 292,000 room nights generating projected Municipal Accommodation Tax (MAT) revenues of $3.5 million.

Overall, the operations and capital costs to be incurred locally in Toronto have been projected to be approximately $300.0 million by 2026, including a 10 percent contingency.  This reflects a 3.4 percent increase in the projected cost as presented to City Council in April 2022, due the recent escalation in inflation rates. In keeping with the Federal Policy for Hosting International Sport Events in Canada, the Governments of Canada and Ontario are expected to cover up to two-thirds of this amount - an approximate total of $184.0 million. In addition, the cost of hosting the World Cup will be also partially offset through access to commercial rights and related revenue opportunities delegated by FIFA to event organizers, such as the City of Toronto. The cost for the City of Toronto, prior to any further offsets including earned revenue sources from fees, commercial sponsorship and local partnerships, is projected to be up to $77.1 million in investment plus $24.0 million in City services offered in-kind, primarily in 2025 and 2026.

Planning for Toronto's participation in the 2026 World Cup continues under City leadership with the support of other key stakeholders. However, some uncertainties remain following the announcement of host cities by FIFA on June 16, 2022. Notably, detailed financial commitments to the costs of hosting the World Cup in Toronto have not yet been secured from the federal and provincial governments. While expressing support for Toronto's bid, detailed financial commitments from the Province of Ontario have been delayed due to the timing of the provincial election in June 2022.  The federal government has indicated that specific financial commitments will only be made once a national safety and security concept has been completed to inform the federal essential services component of the total event cost. The full security plan and associated costing is unlikely to be available until early 2023. In the interim, the federal government has indicated that it will follow the direction of the Federal Policy for Hosting International Sport Events. This policy sets limits on federal funding of international events. The federal government will cover up to 35% of total event costs and will not exceed 50% of the total public sector contribution to the event.

In its decision of April 6, 2022, Council authorized the Mayor and City Manager to accept the nomination as a Host City, even if full government funding commitments were not yet secured. As reported to Council in April, current indications from the provincial and federal governments and past experience for major events have led staff to be confident that suitable funding arrangements, as sought by City Council, will be secured. City staff will provide City Council with updates on any progress made concerning intergovernmental funding related to the FIFA World Cup 2026 in Q1 2023.

With Toronto now named a Host City, this report seeks the approval of City Council for City of Toronto staff to secure and sign a Multi-Party Agreement between orders of government and Canada Soccer, create the FIFA World Cup (FWC) Toronto 2026 Staff Secretariat, allocate funding from the Major Special Events Reserve Fund to support the advancement of project planning, evaluate and enter agreements in the interest of delivering World Cup matches in Toronto, and prepare financial plans for the City of Toronto to budget for up to $77.1 million in cash and $24.0 million in value-in-kind services, through the annual budget process in future years, as a matching commitment to funding from other governments within an overall project cost projected to be $300.0 million for the delivery of the World Cup in Toronto in 2026.

The Executive Committee recommends that:

Regulated Electricity Distribution

1. City Council, on behalf of the City of Toronto as shareholder, request Toronto Hydro to include in the publicly available portion of its annual report to the City of Toronto the status of the provincially regulated expanded grid capacity for growth, electrification and incremental local renewable generation in relation to helping the City of Toronto achieve its TransformTO: Net Zero Strategy goals.

Climate Advisory Services

2. City Council, on behalf of the City of Toronto as shareholder, request Toronto Hydro to expand its business activities beyond electricity distribution services by establishing a new stream of non-rate regulated operations within its regulated business, specifically Climate Advisory Services (the climate action opportunity that excludes Toronto Hydro owning and operating assets), in keeping with the proposal set out in Toronto Hydro's Climate Action Plan received by City Council at its meeting on December 2021 and the Toronto Hydro Climate Action Plan Status Report.

3. City Council direct the City Manager and Toronto Hydro, on behalf of the City of Toronto as shareholder, to negotiate terms and create a Memorandum of Understanding, in a form satisfactory to the City Solicitor, related to Toronto Hydro's Climate Advisory Services - including communications and marketing to customers, alignment of key performance indicators, implementation timelines and progress reporting -- to ensure that the implementation of Climate Advisory Services and TransformTO are coordinated and provide value-for-money, in relation to any future impacts on the Toronto Hydro dividend to the City, and report back to City Council on the Memorandum of Understanding in the second quarter of 2023.

4. City Council request Toronto Hydro to develop targets for the Climate Advisory Services including, but not limited to, installation of heat pumps, solar panels and Electric Vehicle chargers, prior to signing of the memorandum of understanding between the City of Toronto and Toronto Hydro.

5. City Council, on behalf of the City of Toronto as shareholder, request Toronto Hydro to deliver publicly to the Executive Committee through the City Manager, the Chief Financial Officer and Treasurer, and the Deputy City Manager, Corporate Services, an annual report on the progress, key performance indicators, and next steps of Climate Advisory Services.

Climate Capital Investments: Street Lighting

6. City Council confirm its support in principal for proceeding with City-wide LED street and expressway light conversion, including the related enabling infrastructure investments. 

7. City Council request the General Manager, Transportation Services, in consultation with the Chief Financial Officer and Treasurer, and in consultation with Toronto Hydro, develop implementation options for the City-wide LED street and expressway light conversion including applicable budget, and report back with a recommendation by the end of the second quarter of 2023.

8. City Council authorize the City Solicitor to sign an amendment to the existing retainer agreement with Stikeman Elliott LLP (Purchase Order No. 6042019) for legal advice and support to negotiate amendments that may be necessary to the 2006 Street and Expressway Lighting Service Agreement between the City and Toronto Hydro Energy Services Inc. for LED conversion and other related matters under this agreement, increasing the current upset value of the retainer by $475,000 so that it increases from a total $305,000 (excluding HST) to $780,000 (excluding HST), for a term that expires when the services are completed.

Climate Capital Investments: Other

9. City Council direct the Executive Director, Environment and Energy to continue to investigate with Toronto Hydro on other possible Climate Capital Investment opportunities (whereby Toronto Hydro owns and operates climate action assets such as EV chargers) to implement Transform TO: Net Zero goals.

Confidential Attachment

10. City Council direct that Confidential Attachment 1 to the report (June 28, 2022) from the City Manager remain confidential in its entirety, in accordance with Section 4.4 of the Toronto Hydro Shareholder Direction, as it contains technical, commercial, financial or labour relations information of Toronto Hydro Corporation.

At City Council's request at its December 15, 2021 meeting, City staff and Toronto Hydro Corporation have continued a collaborative analysis of the Toronto Hydro Climate Action Plan and relevant City strategies and programs to determine specific goals, outcomes, actions and timelines for enabling Toronto’s net zero climate targets.

This report responds to further Council direction that the City Manager report to City Council on the results of this analysis and any recommendations regarding new climate action mandates such as a shareholder direction for Toronto Hydro. In support of this request, as well as other requests of Toronto Hydro made at the December 2021 Council meeting, Toronto Hydro has prepared a Status Report on their Climate Action Plan (CAP), included here as an Attachment.

City staff will continue to work with Toronto Hydro on implementation of the CAP subject to the requested City Council mandates. The opportunities identified for near-term implementation are:

- Climate Advisory Services (CAS), a new unregulated business focused on supporting customer adoption of low carbon technologies; and

- Climate Capital Investments, with the immediate focus on conversion of streetlights to LEDs, subject to the development of an implementation plan by City staff, in consultation with Toronto Hydro. 

Toronto Hydro estimates that annual CAS operating costs will rise from approximately $8 million to $15 million from 2023 to 2026. Toronto Hydro proposes to fund CAS from revenues and net income within their regulated electricity distribution business, and operating budget would be allocated through their typical budgeting process.

Toronto Hydro also estimates that LED conversion of street and expressway lighting will require a capital investment of approximately $180 million. Technology options, timeline, budget and funding sources for the conversion will be addressed in an implementation plan being developed by Transportation Services in consultation with Toronto Hydro. 

City staff and Toronto Hydro agree that any expansion of electricity distribution is generally a matter of Provincial/Ontario Energy Board regulatory jurisdiction, therefore no mandate related to an expansion of electricity distribution is being sought in this report. As the City of Toronto continues work on implementation of TransformTO, including through engagement with the Climate Advisory Group and the Joint TransformTO Implementation Committee, it will provide inputs to help inform Toronto Hydro electricity demand growth scenarios.

The City and Toronto Hydro will also continue to coordinate and collaborate on implementation and to identify short, medium, and longer-term actions.

The Executive Committee recommends that:

1. City Council support, in principle, undertaking a further phase of waterfront revitalization that could be enabled through tri-government funding commitments and governance.

2. City Council endorse the following four interconnected priorities to guide a further phase of waterfront revitalization:

- Strategic economic development;

- Truth, justice and reconciliation, including through Indigenous engagement;

- Equity, inclusion and access, including through housing; and

- Climate resilience and sustainability.

3. City Council request that the City Manager and Deputy City Manager, Infrastructure and Development Services report back in the third quarter of 2023 with the results of intergovernmental discussions on a further phase of waterfront revitalization, and as appropriate, an implementation action plan.

4. City Council authorize City Officials to pursue discussions with their Provincial and Federal counterparts on a further phase of waterfront revitalization.

5. City Council request that the City Manager work with the General Manager of Economic Development and Culture, as well as the Chief Executive Officer, CreateTO and the Chief Executive Officer, Waterfront Toronto and Toronto’s creative, climate and life sciences innovation industries, on the next steps for advancing the recommendations in the report titled: Igniting Innovation: A Call to Action for Innovation-led Economic Development on Toronto's Waterfront.

6. City Council request the Deputy City Manager, Infrastructure and Development Services, the Deputy City Manager, Community and Social Services, the Deputy City Manager, Corporate Services and the Chief Executive Officer, Toronto and Region Conservation Authority to actively pursue support for waterfront projects in the Western and Eastern Waterfronts with other orders of government, including the potential leveraging of existing and future government funding programs, coordinated through a Wider Waterfront Coordination Table.

7. City Council request that the Director, Waterfront Secretariat, working with the Director, Indigenous Affairs Office, undertake further engagement with:

a. Indigenous rights holders and urban Indigenous communities on advancing the City of Toronto Reconciliation Action Plan 2022-2032 in relation to the implementation of the next phase of waterfront revitalization; and

b. the public and stakeholders on the implementation of the next phase of waterfront revitalization.

Context and Introduction

More than 20 years ago, the City, Province and Federal government jointly embarked on a project to make Toronto's waterfront a place of local, provincial and national pride. Together, the governments developed a vision for the future, wrote an action plan to realize the vision, and created an organization, Waterfront Toronto, to implement the vision, focused on the Central Waterfront, officially referred to as the Designated Waterfront Area (Attachment 1, Figure 3). Two major phases of tri-government investment, initiated in 2001 and 2016, have catalyzed public and private action. Broad public consultation has informed the designs of forward-thinking plans and projects. Today, the waterfront has been transformed; it continues to change daily through construction on the ground, through the development of new plans for the future, and as city life takes root across transformed neighbourhoods.

Toronto today is very different from the city in 2000 when City Council approved the original waterfront vision, Our Toronto Waterfront (Fung Report). In the context of a changing city and the progress of revitalization and flood protection on the waterfront, new areas are opening up to become the next candidates for transformation. It is therefore the right time to consider what the next phase looks like and how it will be funded.

With that in mind, in 2021, Council directed staff to reflect on the history of revitalization and renew the waterfront vision for the next generation. City staff have initiated a broad process of public consultation, stakeholder engagement and Indigenous engagement that will continue through 2022 and beyond. The first step has been to articulate four interconnected priorities that focus on the societal challenges that matter most today and to outline shared public objectives that should guide investments and project planning, design and implementation along the waterfront. The four priorities are:

- Strategic economic development;

- Truth, justice and reconciliation, including through Indigenous engagement;

- Equity, inclusion and access, including through housing; and,

- Climate resilience and sustainability.

These priorities will inform the continued transformation of Toronto's Designated Waterfront Area and assist in better coordinating investments across the Western and Eastern Waterfronts, from Etobicoke to Scarborough. A further description of the Western and Eastern Waterfronts can be found in the Comments section below and Attachment 1.

The City implements waterfront revitalization in a number of ways:

- Through the tri-government partnership and Waterfront Toronto, the corporation established by the three governments;

- Through the work of City Divisions, Corporations, and Agencies, as well as arm’s length bodies, such as CreateTO, Exhibition Place, the TTC, the Toronto and Region Conservation Authority, etc.;

- By collaborating with Provincial Ministries and Federal Departments on various initiatives (i.e., transit initiatives, the Ontario Place Redevelopment, the Rouge National Urban Park, etc.), as well as their agencies (Infrastructure Ontario, Metrolinx, PortsToronto, etc.); and,

- By working with institutions, non-profits and community organizations (Harbourfront Centre, The Bentway, the Waterfront BIA, etc.).

This Report

This report outlines the next steps for City officials in advancing intergovernmental discussions on a renewed vision and priorities for a further phase of waterfront revitalization.

This report addresses City Council direction, provided on November 9, 2021 (EX 27.6) for staff to: "Report to Executive Committee in the first quarter of 2022 with the results of the public consultation and stakeholder engagement process on a next phase of waterfront revitalization and a renewed waterfront vision that sets a path forward for what Toronto will achieve along its 43-kilometre waterfront, from Etobicoke to Scarborough, including anticipated economic development, reconciliation, social, equity and environmental outcomes."

This report:

- Details the results of public consultation and stakeholder engagement, as well as the Indigenous engagement that is in progress (Attachment 2);

- Provides a renewed vision for the next phase of waterfront revitalization (Comments section);

- Describes a call to action for innovation-led economic development on the waterfront (Attachment 3);

- Summarizes the status of discussions with Provincial and Federal staff on a further phase of waterfront revitalization;

- Outlines revitalization opportunities in the Designated Waterfront Area (Central Waterfront) and the Western and Eastern Waterfronts;

- Discusses implementation and governance in the Designated Waterfront Area (Central Waterfront) and the Western and Eastern Waterfronts; and,

- Outlines the next steps, culminating in a further staff report in Q3 of 2023.

From Vision to Projects to Community Life

The emerging vision is outlined in the Comments section of this report. The vision reflects the results of the initial phase of public consultation and stakeholder engagement.

A related document on strategic economic development opportunities, Igniting Innovation: A Call to Action for Innovation-led Economic Development on Toronto’s Waterfront (Attachment 3), has been drafted with the assistance of a volunteer panel of expert advisers. Facilitated by KPMG, the volunteer panel advised City staff on opportunities to advance innovation as a strategic economic development component of the renewed vision.

Villiers Island represents the next opportunity for continued waterfront revitalization in the Designated Waterfront Area, and to create a new sustainable and complete community. Investments in infrastructure will advance the renewed vision’s priorities and City policy objectives, such as affordable housing, by increasing the value of land owned by the City and CreateTO (the City’s strategic real estate entity) and leveraging private sector investment.

Next phase projects could also include projects that complete waterfront revitalization in precincts already under development (such as the East Bayfront and Keating West), other areas in the Port Lands that connect to Villiers Island (e.g. McCleary District, Basin Media Hub), as well as projects in the Western and Eastern Waterfronts. Ultimately, realizing these opportunities will require a program of public investments similar to those made in previous phases of revitalization.

There is strong public interest in Toronto's Western and Eastern Waterfronts. City Divisions, Agencies and Corporations share this strong interest, demonstrated by their work on projects involving parks, natural heritage, active transportation, shoreline stabilization/resilience and connections to the city's river valleys and ravines.

Staff of the Toronto and Region Conservation Authority and City Divisions have successfully leveraged programs to advance waterfront projects along the wider waterfront, including through intergovernmental funding programs. However, a coordinated governance model is needed in the Western and Eastern Waterfronts, outside of the Designated Waterfront Area, where the Waterfront Toronto model has worked well.

Specifically, a Wider Waterfront Coordination Table will help organize projects and package them for funding, facilitate information-sharing and timely decision-making, coordinate design and delivery, promote input on project phasing and advancement, and build momentum for Provincial and Federal partnerships. The City’s Waterfront Secretariat and the Toronto and Region Conversation Authority will co-chair this Table. Additional Table membership will include a range of City Divisions and City and external Agencies. The Deputy City Manager, Infrastructure and Development Services will be the City's sponsoring/executive lead of this initiative, which is described further in the Comments section of this report.

A number of Provincial and Federal funding programs are well suited for the types of projects in the Western and Eastern Waterfronts typical of City Divisions and Agencies (parks, natural heritage, transit, active transportation and resilience). A key role for the Wider Waterfront Coordination Table will be to maintain, coordinate and prioritize projects for consideration by the Provincial and Federal governments to further the potential commitment to revitalization through relevant existing or new funding programs.

Towards a Next Phase

The City, Waterfront Toronto, CreateTO and the Toronto and Region Conservation Authority will engage Provincial and Federal governments to explore options for funding an ambitious program for the next phase of waterfront revitalization projects. All orders of government face challenging economic pressures; however, waterfront revitalization has delivered significant economic, social and environmental benefits and could continue to do so well into the future. The benefits of waterfront revitalization go beyond leveraging and maximizing available investments, offering an opportunity to coordinate, align and effectively deliver on the priorities of all three orders of government.

Staff of the City, the Ontario Ministry of Infrastructure and Infrastructure Canada have been engaged in preliminary discussions on the next phase of waterfront revitalization. Further intergovernmental discussions are required to determine the scope of work and available funding. As they are interrelated, officials at the three orders of governments are also exploring options for extending Waterfront Toronto’s 25 year mandate, which will otherwise expire in 2028.

City staff will continue these discussions with a view to reporting back to City Council in Q3 2023 with an update regarding Provincial and Federal interest. City staff will also report back with an implementation action plan, to be developed by the City, working with CreateTO and Waterfront Toronto, as well as the Toronto and Region Conservation Authority. City staff will, working with the City’s Indigenous Affairs Office and the Provincial and Federal governments, engage Indigenous rights holders, including Treaty and Territorial Partners, and urban Indigenous communities on waterfront issues on a proactive and comprehensive basis.

The Executive Committee recommends that:

Affordable Housing Implementation

1. City Council endorse the inclusion of the City lands, and request that the Toronto Port Lands Company Board of Directors endorse the inclusion of Toronto Port Lands Company lands in the Quayside project, consistent with the Quayside Business and Implementation Plan, with specific terms to be defined in future land transactions for Council and/or Board approval, including the principle that the net sale proceeds from the City and Toronto Port Lands Company lands in Block 3B be contributed to the Quayside affordable housing program.

2. City Council authorize the up to 875 new affordable rental dwelling units to be developed at Quayside to be eligible through the City's Open Door Affordable Housing Program, for waivers of fees for planning applications, building permits and parkland dedication, and for development charges exemption, unless already paid.

3. City Council authorize the Executive Director, Housing Secretariat to issue a Request for Proposals and to select one or more non-profit housing provider(s) to own and/or operate the affordable rental homes in Quayside.

4. City Council authorize the Executive Director, Housing Secretariat, in consultation with the Chief Financial Officer and Treasurer, to negotiate and execute on behalf of the City, Municipal Housing Facility Agreement(s) (the City's "Contribution Agreement(s)), with the non-profit housing provider(s) selected through the competitive process, referred to in Recommendation 3 above and/or the Development Partner, to secure the financial assistance being provided and to set out the terms of the operation of the new affordable rental housing, on terms and conditions satisfactory to the Executive Director, Housing Secretariat, and in a form approved by the City Solicitor.

5. City Council authorize the Executive Director, Housing Secretariat, in consultation with the Chief Financial Officer and Treasurer, to negotiate and execute on behalf of the City, any agreements with the non-profit housing providers selected through the competitive process referred to in Recommendation 3 above and/or the Development Partner, for any operating funding that may be available, including, but not limited to rent supplement or grant funding agreements, on terms and conditions agreed to by the Executive Director, Housing Secretariat, in a form approved by the City Solicitor.

6. City Council authorize the Executive Director, Housing Secretariat, in consultation with the Chief Financial Officer and Treasurer, to negotiate and execute on behalf of the City, any security or financing documents required by any of the non-profit housing provider(s) selected through the competitive process referred to in Recommendation 3 above, to secure construction and conventional financing, as well as any subsequent refinancing, including any postponement, confirmation of status, discharge or consent documents where and when required during the term of the Municipal Housing Facility Agreement, as required by normal business practices, and provided that such documents do not give rise to financial obligations on the part of the City that have not been previously approved by City Council.

7. City Council request the Executive Director of the Housing Secretariat, in consultation with Chief Planner and Executive Director, City Planning to report to the Executive Committee in the fourth quarter of 2023, on the status of a delivery plan for the affordable housing, including, availability of funding, timing of the development of affordable housing, location of the units to be delivered, and an update on the funding plan for the construction of the Quayside affordable rental housing program.

Major Infrastructure and Parkland Funding

8. City Council direct that a $142 million City contribution towards the major infrastructure and parkland that is to be delivered at Quayside by Waterfront Toronto, be included in Waterfront Revitalization Initiative capital budget submissions for Council's approval through future year budget processes, giving consideration along with other city priorities and capital requirements.

9. City Council direct the Director of Waterfront Secretariat to include funding for major infrastructure and public park work, consistent with the $142 million capital funding requirement in Recommendation 8 above, in future year Waterfront Revitalization Initiative budget submissions.

10. City Council authorize the Deputy City Manager, Infrastructure and Development Services, for the Director of Waterfront Secretariat to work with the General Manager, Transportation Services, and the General Manager, Parks, Forestry and Recreation, to negotiate and execute on behalf of the City the necessary delivery agreements with Waterfront Toronto related to the delivery of infrastructure.

Real Estate Transactions

11. City Council request that the Executive Director, Corporate Real Estate Management, in consultation with the Chief Executive Officer, CreateTO, to report back in the second quarter 2023 on the real estate transactions and related Board and Council approvals necessary to include City and Toronto Port Lands Company lands in the Quayside project as described in Recommendation 1 above, including the creation of Block 3B under consolidated ownership.

12. City Council authorize the Executive Director, Corporate Real Estate Management to negotiate and execute on behalf of the City (subject to any property management agreement between the City and Toronto Port Lands Company in respect of City-owned lands in Quayside) any leases, licenses or other interim agreements (including such agreements with Waterfront Toronto for nominal consideration) to provide access to City-owned lands for site investigations, site preparation and environmental remediation activities for the Quayside project, on such terms and conditions as the Executive Director, Corporate Real Estate Management deems appropriate and in a form satisfactory to the City Solicitor.

13. City Council request that the Board of Directors of Toronto Port Lands Company authorize the same interim approvals in respect of the Toronto Port Lands Company lands as set out in Recommendation 12 above.

Land Use Planning Approvals

14. City Council authorize the Executive Director, Corporate Real Estate Management to execute and deliver on behalf of the City, documentation granting the City's consent to Waterfront Toronto to act as the City's agent (in the City's capacity as owner of the City-owned lands in Quayside) in connection with any planning and development, infrastructure, servicing or other applications or agreements required for the development of the Quayside lands (except environmental applications or agreements), including agreements with Toronto Hydro, Enbridge Gas or any third party utility provider, provided that Waterfront Toronto has agreed to assume all costs and liabilities under such applications and agreements and upon such other terms and conditions as the Executive Director, Corporate Real Estate Management deems appropriate, and in form satisfactory to the City Solicitor.

15. City Council request that the Toronto Port Lands Company Board of Directors authorize the same agency approvals in respect of the Toronto Port Lands Company lands in Quayside as set out in Recommendation 14 above.

16. City Council direct that all actions described in this report, shall be taken by or on behalf of the City in its capacity as land owner and not in its capacity as a planning authority under the Planning Act, the City of Toronto Act, 2006, or otherwise and such actions are not intended to and do not fetter the City’s planning and municipal rights and responsibilities.

17. City Council deem Waterfront Toronto's parkland contribution for Blocks 1 and 2 to be satisfied, per the East Bayfront Precinct Plan requirements and approved as-of-right densities, through the conveyance of Sherbourne Common, Sugar Beach, Aitken Place, and Waters Edge Promenade west of the Parliament Slip.

18. City Council deem Waterfront Toronto's parkland contribution for Blocks 3B, 4 and 5, to be satisfied by Waterfront Toronto, per the Keating Channel West Precinct Plan requirements and as-of-right densities through the delivery of Silo Park and the Water's Edge Promenade (east of the Parliament Slip).

Other, General

19. City Council approve the Quayside Business and Implementation Plan, as Attachment 6 to the report (June 27, 2022) from the Deputy City Manager, Infrastructure and Development Services.

20. City Council authorize the public release of the confidential information in Confidential Attachment 1 to the report (June 27, 2022) from the Deputy City Manager, Infrastructure and Development Services upon completion of the development of the publicly-owned lands in Quayside, as determined by the Deputy City Manager, Infrastructure and Development Services.

21. City Council direct that the information contained in Confidential Attachment 2 to the report (June 27, 2022) from the Deputy City Manager, Infrastructure and Development Services remain confidential in its entirety.

This report provides a "road map" for approvals related to Waterfront Toronto's Quayside project. In particular, this report addresses a number of business and implementation planning issues that are fundamental to Waterfront Toronto's ability to advance this revitalization project. Quayside is a significant and complex project that will be implemented over a number of years. Numerous City approvals will be required in the coming years, related to affordable housing implementation, major infrastructure and parkland funding, real estate transactions and land use planning approvals. In 2022, City approvals are required with respect to: the Quayside Business and Implementation Plan; City funding contributions to the Quayside affordable rental housing, and major infrastructure and parkland programs; and how City Divisions and CreateTO, as the City's real estate agency, will work with Waterfront Toronto as it implements the Quayside project.

Quayside Business and Implementation Plan

Waterfront Toronto has submitted a Business and Implementation Plan for Quayside, dated June 27, 2022, as required by a Memorandum of Understanding (M.O.U) between Waterfront Toronto, the City of Toronto and the Toronto Economic Development Corporation (now operating as Toronto Port Lands Company or T.P.L.C.), covering lands owned by the City and T.P.L.C. in the East Bayfront and Port Lands. The M.O.U. defines the requirements for detailed business and implementation plans prior to providing Waterfront Toronto with effective control of City or T.P.L.C. lands in the Designated Waterfront Area. The Quayside Business and Implementation Plan is appended to this staff report as Attachment 6.

About Quayside

Quayside is a 4.9 hectare parcel of land on Toronto's waterfront, located at Queens Quay East and Parliament Street. The majority of the site is owned by Waterfront Toronto. However, it also includes lands owned by the City of Toronto and the Economic Development Corporation operating as T.P.L.C. (All T.P.L.C. lands are managed under agreement by CreateTO with corporate governance provided by the T.P.L.C. Board of Directors.) In addition, the property at 307 Lake Shore Boulevard East which abuts Block 3B to the north is privately owned by Plaza Partners. Quayside straddles two precincts: Blocks 1 and 2 (owned by Waterfront Toronto) are sited within the East Bayfront Precinct and Blocks 3B (owned by City and T.P.L.C.), 4 and 5 (owned by Waterfront Toronto) are within the Keating Channel West Precinct (refer to Attachment 2: Quayside Current Land Ownership Map). Waterfront Toronto estimates that Quayside will be developed between 2022 and 2031. Waterfront Toronto estimates that approximately 6,100 people will live in 3,500 housing units in Quayside; Waterfront Toronto estimates that the area's commercial space will support approximately 1,600 jobs.

The City has multiple roles and interests in Quayside: as land owner, as owner/operator of municipal infrastructure, parkland and services, as provider of affordable housing and as the local planning authority. Collectively, City and T.P.L.C. lands constitute approximately 0.6 hectares in the Quayside project area. The City and T.P.L.C. both own lands in the future development parcel designated as Block 3B, including the existing Parliament Street; these parcels are relatively small and are irregular in shape. Beyond Block 3B, T.P.L.C. also owns a triangular-shaped rail spur remnant, an east-west strip of land abutting Block 4 and an L-shaped strip along the dockwall.  

Waterfront Toronto's Procurement Process

Over the past year, Waterfront Toronto has conducted a procurement process to secure a development partner for Quayside. All levels of government reviewed and contributed to the final R.F.Q. and R.F.P. documents. This included an R.F.Q. issued in March 2021 and an R.F.P. issued in July 2021. Ten submissions were received in response to the R.F.Q. From this, four proponents were selected to participate in the R.F.P. process. The City and CreateTO were represented on the Evaluation, Steering and Technical Committees for the project.

On February 15, 2022, Waterfront Toronto’s Board of Directors approved a recommendation from its Investment and Real Estate sub-committee to partner with the Preferred Proponent known as Quayside Impact Limited Partnership, led by Dream Unlimited and Great Gulf Group. Terms relating to the development of the project will be set out in a Project Agreement between the two parties; Waterfront Toronto will be responsible for the overall coordination of the project and the delivery of infrastructure, while Quayside Impact Limited Partnership will be responsible for the development. It is anticipated that the Project Agreement will be finalized and executed in fall 2022, after which, the Preferred Proponent will become Waterfront Toronto's Development Partner.

Development Proposal and Project Phasing

Quayside is intended to be developed as a mixed-use community consistent with the East Bayfront and Keating Channel West Precinct Plan frameworks.

The Quayside Project will take place in two phases. Phase One will include Blocks 1 and 2 and implementation will commence starting in 2022. Blocks 1 and 2 are covered by the East Bayfront Precinct Plan. Phase Two includes Blocks 3B, 4 and 5 and is more complex when compared with Phase One. Waterfront Toronto estimates that Phase Two will commence in 2026. All three Phase Two development blocks are within the Keating Channel West Precinct. The consolidation of lands owned by the City and T.P.L.C. is required to facilitate the implementation of planned road and infrastructure improvements, as well as to create Block 3B as a development parcel. Further details are provided in the "Comments" section below.

Affordable Housing Implementation

The residential development at Quayside will include approximately 23% of residential gross floor area as affordable rental housing (a minimum of 800 units and up to 875 units), and a further 5% of the units as affordable ownership (approximately 200 units). The actual number of affordable homes to be created will be dependent on the final approved density and land-use mix in Quayside, plus the amount of funding and financing secured to build the units. The Housing Secretariat has been involved in reviewing the Quayside proposal and will continue to be involved throughout the process.

Waterfront Toronto will work with the City, Province and Federal governments, as well as the selected non-profit housing providers and/or the Development Partner to secure the affordable funding and financing necessary to deliver the affordable housing component of the project, and to, potentially, exceed the affordability targets (e.g., number of affordable units and/or deeper levels of affordability).

As such, Recommendations 1, 2, and 3 of this report address the Council directions that are needed to advance the Quayside affordable housing program to:

i)   Direct land sale revenues from City and T.P.L.C. lands on Block 3B towards affordable rental housing in Quayside;

ii)   Authorize Open Door Affordable Housing Program incentives (waivers of fees for planning applications, building permits and parkland dedication, and development charges exemption, with authority for property tax exemptions to be requested in a later report once the location(s) of the affordable rental housing units are known) for up to 875 affordable rental units (estimated value of $47,951,703); and

iii)  Issue a Request for Proposals to identify suitable non-profit providers to own and/or operate the affordable rental housing.

Once the actual number of affordable housing units and the location of the units have been determined, staff will report to Council to seek approval for property tax exemptions for a 99 year period through the Open Door Affordable Housing Program. The overall anticipated value of Open Door incentives using current rates, once approval is received from Council for the property tax exemptions, is estimated at $78,231,280.

The affordable rental units are intended to be delivered over two phases. Land for all units (800 to 875) will be set aside through the Quayside project. Based on input from City staff, Waterfront Toronto's Request for Proposals document identified the criteria for the units, including the required locations, unit mix and distribution, with which the Preferred Proponent complied.

The cost to deliver between 800 and 875 affordable rental homes is significant and will require funding and financing from a range of sources. While the land has been secured for both phases, the funding plan to deal with the "bricks and mortar" costs is still a work in progress.

Quayside Phase One will provide approximately 460 affordable housing units (of the up to 875 units) at a cost of approximately $270 million (including soft, hard and financing costs). The City's contribution for Phase One will include the full value of Block 3B and City Open Door Affordable Housing incentives, as detailed in the Financial Impact Section of this report.

Waterfront Toronto, working with City staff, has reached out to the Provincial and Federal governments (including the Canada Mortgage and Housing Corporation) to explore funding opportunities to deliver the Quayside affordable housing program. The required equity contribution from Waterfront Toronto from land sales proceeds will vary based on how much funding can be secured from other levels of governments for each phase of Quayside.

While there is a plan to deliver the Phase One affordable rental units, Waterfront Toronto continues to work on a funding plan for the construction of the Quayside Phase Two units. City staff, in consultation with Waterfront Toronto and others, will report back to the Executive Committee in late 2023 with a funding plan for the Phase Two housing units (see Recommendation 7). The funding model for the construction of the Quayside Phase Two affordable housing units (approximately 415 units) will be based on similar assumptions, including Open Door incentives; potential funding and financing from the Provincial and Federal governments, and potential additional contributions from Waterfront Toronto.

In addition, Waterfront Toronto and City staff will work with Waterfront Toronto's Preferred Proponent to also look at options to reduce the cost of the planned affordable rental housing at Quayside, including:

- Potential long-term leases (versus ownership);

- Aligning studio and one bedroom unit sizes with market units; and

- Allowing for slightly smaller two and three bedroom units.

Major Infrastructure and Parkland Funding

Similar to the approach used in the East Bayfront and West Don Lands, Waterfront Toronto will be responsible for the delivery of major infrastructure and parkland in Quayside.

For Quayside, the major infrastructure and parkland includes the partial acquisitions of Parliament Slip and 11 Parliament Street, and the partial lake filling in order to facilitate the future extension of Queens Quay East (and related dockwall rehabilitation), including a reconfigured Queens Quay East/Parliament Street intersection; improvements to Bonnycastle Street and Lake Shore Boulevard East; Silo Park (0.4 hectares) and Water's Edge Promenade (0.3 hectares). Refer to Attachment 4: Quayside Infrastructure and Public Realm Plan. Delivery is estimated to cost approximately $190 million based on project timeline and annual inflation estimates.

As is further outlined in the Financial Impact section below, City staff are recommending a $142 million City contribution towards the major infrastructure and parkland that is to be delivered at Quayside, to be cash-flowed over a 10-year period. City funding is not required in 2022. This report recommends this funding be included in Waterfront Revitalization Initiative capital budget submissions for Council's approval through the 2023 and future year budget processes, with consideration of other city priorities and capital requirements. This report includes recommendations that would allow for staff to enter into the necessary infrastructure delivery agreements with Waterfront Toronto to facilitate planning, design and construction.

Subsequent detailed reports will address the necessary approvals needed to complete the proposed infrastructure and parkland implementation work.

Real Estate Transactions

Quayside requires a series of land transactions to create the future Block 3B through the consolidation of City and T.P.L.C. properties, as well as the transfer of various other remnant City and T.P.L.C. parcels located beyond Block 3B. Once the coordination and sequencing of the land transactions have been determined and agreed upon by all parties, it is anticipated that delivery, contribution and infrastructure related funding agreements will need to be entered into with the appropriate land owners.

This report recommends that authorization be given to the Executive Director, Corporate Real Estate Management, subject to any property management agreements between the City and CreateTO, to proceed with leases, licences and other interim agreements for nominal consideration to allow for necessary site investigation, preparation and environmental remediation. This report also recommends that City Council request that the T.P.L.C. Board of Directors do the same in respect of T.P.L.C. lands.

Subsequent reports to Council will address transactional details related to: the closure of Parliament Street, the surplus declaration and disposal terms of any portions of Block 3B being sold, the land appraisal of Block 3B, and the details of the necessary implementation agreements needed for the development of Block 3B between the City, T.P.L.C. and Waterfront Toronto and/or its Development Partner for Block 3B. The results of an appraisal of Block 3B are addressed in Confidential Attachment 1.

Land Use Planning Approvals

The Development Partner, or its designated Site Developers, will be subject to applicable City Planning Division development review processes. A formal pre-application consultation meeting will be scheduled to confirm application and submission requirements. Given that the Phase One lands are serviced to accommodate development for the existing as-of-right zoning permissions, a draft plan of subdivision application will not be required. However, a draft plan of subdivision application will be required for the Phase Two lands. Waterfront Toronto, as agent, will act as the applicant for the draft plan of subdivision application. The Development Partner and its site developers are to comply with the applicable zoning by-laws and submit their designs for review and comment to the Waterfront Toronto Design Review Panel.

This report recommends that Waterfront Toronto be authorized as the City's agent to file planning and development related applications for City-owned lands; it requests that the Board of Directors of T.P.L.C. authorize the same agency approvals in respect of the T.P.L.C. lands. This report seeks an acknowledgement that local infrastructure improvement contributions have been satisfied for Blocks 1 and 2.

Next Steps

The recommendations in this report will, if adopted, allow Waterfront Toronto to move forward with finalizing its agreements with its Preferred Proponent; Waterfront Toronto will also be able to close on Blocks 1 and 2, and advance site investigations, site preparation and environmental remediation. City of Toronto staff will work with CreateTO on a work plan, outlined above and described in more detail below, which will lead to subsequent staff reports related to affordable housing implementation matters, infrastructure funding, real estate transactions and land use planning approvals that will require City Council direction in 2023 and beyond. The Board of Directors of T.P.L.C. will also consider staff reports in a concurrent manner, as necessary, to facilitate real estate transactions.

Given the enormous scope and complexity of the Quayside project, there are matters that will need further evolution in order to determine outcomes. For instance, proposed on Block 5 are a cultural centre and the potential co-location of an elementary school. These two uses will require on-going review, discussion and negotiation to ensure the achievement of the aspirations for the block. Given that Quayside is a long-term phased project, phasing and scheduling will require review throughout the design process, and the project's cost estimates will be subject to further detailed review. Specifically, the estimated construction timeline (Q4 2025 to Q4 2028) of Queens Quay East and Parliament Street will be subject to ongoing coordination with other impacted major projects in the area. Further, Waterfront Toronto is also the proponent of the Parliament Slip project, a proposed water's edge public and recreational space that would abut and complement the Quayside neighbourhood; the City will work with Waterfront Toronto as it engages with the Provincial and Federal governments with respect to potential financial contributions to the Parliament Slip project.

Quayside will advance in the coming months and years, and be addressed in future City staff reports. In the meantime, the recommended approvals in this report will allow Waterfront Toronto to transact with its Preferred Proponent, and to begin detailed design, submit land use planning application, and to commence site preparation and related work in Quayside.

The Executive Committee recommends that:  

1. City Council authorize the Chief Financial Officer and Treasurer to enter into a non-binding Memorandum of Understanding with the Canada Infrastructure Bank for the purposes of negotiating terms of a credit facility relating to the purchase of Zero Emission Buses of up to $207 million depending and related charging infrastructure for the Toronto Transit Commission acceptable to the Chief Financial Officer and Treasurer and in a form acceptable to the City Solicitor.

2. City Council request the Toronto Transit Commission Board to direct the Chief Executive Officer,  Toronto Transit Commission to provide the necessary information to the Canada Infrastructure Bank to facilitate the negotiation of terms and to calculate the repayment of any funds drawn under this credit facility.

3. City Council amend Municipal Code, Chapter 30, Debentures and other Borrowing, to add the entering into conditional loan agreements with the Canada Infrastructure Bank to the authority delegated to the Mayor (or the Mayor's Alternate) and the Chief Financial Officer and Treasurer to enter into agreements pursuant to Municipal Code, Chapter 30 to commit the City to long term borrowing for capital works in the year 2022.

The purpose of this report is to take the necessary steps to establish a credit facility with the Canada Infrastructure Bank (CIB) for the purpose of financing the Toronto Transit Commission (TTC) procurement of Zero Emission Buses (ZEBs).

As part of the overall process, the CIB requires the City and the TTC to enter into a non-binding Memorandum of Understanding (MOU) before a final agreement for a multi-year credit facility is completed.  It is necessary for the TTC to be a party to this agreement as the repayment of the loan is based on the calculated operating savings between a diesel bus and a ZEB.  The TTC will be required to confirm this information before the credit facility is established and provide updates throughout the term of the loan.

The CIB credit facility will only finance the difference between the capital cost of a diesel bus and a ZEB, however will provide an overall lower cost of financing than if the City were to issue debt for the full amount of a ZEB on its own.  Currently, the rate of interest on funds drawn from the CIB credit facility is one percent (1%).

Currently, the TTC Green Bus Program includes the procurement of ZEBs. As of November 2021, TTC had a total fleet of 2,086 buses, including 60 ZEBs.  As part of this program, $376 million is captured in the 2022-2025 Capital Budget and Plan, comprised of $299 million to purchase 240 ZEBs plus another $77 million for charging infrastructure.  Of this total program amount of $376 million, the approved Capital Plan allows for $207 million of recoverable debt which is split between the ZEBs ($131 million) and charging infrastructure ($76 million).  The number of ZEBs may increase over the 240 planned units depending on grant monies that may follow from other orders of government. 

Related to this, CIB has been working collaboratively with Infrastructure Canada through its Zero Emission Transit Fund (ZETF), which does provide grants for the replacement of diesel public transit vehicles, with zero emission vehicles. Although not a condition of the ZETF program to have a CIB credit facility, priority for ZETF grants is being given to ZEB projects that are also being considered for CIB financing.  The TTC has applied to the ZETF program and is awaiting a response to their application.

The Executive Committee recommends that:

1. City Council receive the report (June 9, 2022) from the Chief Financial Officer and Treasurer for information.

The purpose of this report is to provide City Council with the City of Toronto capital spending for the twelve month period ended December 31, 2021.

As illustrated in Table 1 below, City's 2021 capital expenditure was $3.545 billion or 67.6% of the 2021 capital budget of $5.245 billion for the period ended December 31, 2021.

- Tax Supported Programs and Agencies reported capital expenditures of $2.319 billion representing 61.3% of their collective 2021 Approved Capital Budget of $3.783 billion.

- Rate Supported Programs reported capital expenditures of $1.226 billion, representing 83.9% of their collective 2021 Approved Capital Budget of $1.462 billion.

As reported in the April 7, 2021 COVID-19 Recovery and Rebuild Update to City Council, the 2021 Capital Budget anticipated potential impacts to capital project delivery as a result of pending intergovernmental funding commitments to address COVID-19 financial pressures. These challenges were sustained throughout 2021 due to ongoing significant global supply chain issues and labour challenges attributed to COVID-19, severely impacting capital delivery. In Q4 the emergence of the Omicron wave further impacted capital project delivery.

Table 1: Capital Variance Summary

*Note: Includes carry forward funding

While further efforts to improve capital spending continue, divisional and agency improvements in capital planning along with refinements in capital budgeting have resulted in improved capital spend rates over the last few years, with the 2021 spend rate of 67.6% greater than the 5 year historical average of 65.7%. However, the 2021 spend rate is lower than 2020, as challenges were experienced early in the year while awaiting intergovernmental funding commitments to address COVID-19 financial pressures; and were sustained throughout 2021 due to ongoing significant global supply chain issues and labour challenges attributed to COVID-19, severely impacting capital delivery.

This was particularly impactful during Q4 where the emergence of the Omicron wave resulted in lower spending than forecasted for the fourth quarter, with actual spending reported as 67.6% as compared to a projected year-end spend of 77.4% or $4.076 billion. While less than projected, the City still accomplished a total capital spend of $3.545 billion at year-end, a $1.628 billion increase in actual spending over reported figures in the capital variance report for the nine month ended September 30, 2021, and $0.531 billion less than projected.

Moving forward, the City will continue to plan annual capital projects in line with both affordability and achievability, based on the historical actual capacity and in consideration of emerging challenges such as inflationary impacts and supply chain disruptions. The strategy is expected to build on improvements experienced to date and improve the capital spend rate in future years; fully utilizing approved funding and enabling any excess funding capacity to support additional capital priorities, while promoting realistic capacity to spend in light of external factors and challenges.

The Executive Committee recommends that:

1. City Council approve a budget transfer of $17.524 million from Other Corporate Expenses Account to Toronto Transit Commission, related to the transfer of a City held provision towards settled Toronto Transit Commission Cost of Living Adjustments.

2. City Council approve a one-time temporary withdrawal of $43.700 million from the Child Care Capital Reserve Fund (XR1103) to offset the timing difference between expenditures reflected in 2021 and provincial funding reimbursement reflected in 2022 and authorize the return of $43.700 million to this reserve consistent with provincial funding related to the transfer payment received in 2022.

3. City Council approve COVID-19 related obligations, deferred costs, and recommended allocations as detailed in Appendix D to the report (June 27, 2022) from the Chief Financial Officer and Treasurer.

The purpose of this report is to provide Council with the City of Toronto's Operating Variance results for the year ended December 31, 2021 and the City's financial position before and after receiving COVID-19 funding support.

The City's Tax Supported Operations final year-end experience was consistent with the 2021 balanced net budget following offsets to all COVID-19 financial impacts through a combination of secured federal and provincial funding support and offsetting internal City savings.

Since March of 2020, the City of Toronto, consistent with other major Canadian and Greater Toronto and Hamilton Area (GTHA) municipalities have been experiencing significant financial impacts, both in the form of added costs and significant revenue losses as a direct result of the COVID-19 pandemic.

The 2021 budget was again challenged by the financial impacts arising from the pandemic.  Added costs and revenue losses in 2021 attributed to COVID-19 totalled an estimated $1.9 billion prior to internal City savings and offsets with significant pressures continued to be experienced in Transit and Shelter services as well as within Corporate Revenues. 

- COVID-19 related net financial impacts totalled $1.627 billion after internal offsets and prior to COVID-19 support funding as reflected in table 1 below.

- Net COVID-19 pressures were addressed through COVID-19 funding support from the Government of Canada and Province of Ontario, mainly in the form of Safe Restart Agreement (SRA), added Reaching Home (RH) funding and other funding programs.

Table 1 below details the budgeted 2021 City-wide COVID-19 related financial impacts against secured COVID-19 support funding; and the resulting financial position that is reflected in the year-end variance projections:

Table 1: 2021 Projected COVID-19 Financial Impacts

* Includes TCHC impact of $37.5 million

** Based on Budgeted impacts and excludes immunization costs for Public Health

Tax Supported Programs:

The following table summarizes the financial position of the City's Tax Supported Operations for year ended December 31, 2021.

Table 2:

*Includes Recommended Reallocations and Adjustments

As noted in Table 2 above, for the year ended December 31, 2021 Tax Supported Operations experienced no net variance following adjustments associated with council directed and legislated allocations; as well as adjustments for COVID-19 related obligations, deferred costs, and allocations.

Rate Supported Programs:

Rate Supported Programs reported a favourable year-end variance of $51.3 million. The favourable variance is attributed to lower than budgeted expenditures from Solid Waste Management due to reduced volumes and delays in organic processing facility expansion.  Revenues from Solid Waste Management were also favourable due to improved market rates for sale of recyclables, offset by losses from a Renewable Natural Gas project delay.

Parking Authority had a favourable net variance of $11.7 million mainly due to lower than expected salary costs, and favourable revenue in both on and off street parking.

Toronto Water also saw a net favourable variance resulting from lower water production, salary savings and lower than expected energy rates and consumption.  This was partially offset by unfavourable revenue driven by lower than anticipated sale of water.

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 3: Rate Supported Net Variance Summary ($ Millions)

The Executive Committee recommends that:

1. City Council approve in-year budget adjustments to the 2022-2031 Approved Capital Budget and Plan as detailed in Appendix 4 to the report (June 27, 2022) from the Chief Financial Officer and Treasurer.

The purpose of this report is to provide City Council with the City of Toronto capital spending for the four month period ended April 30, 2022, as well as projected expenditures to December 31, 2022. Furthermore, this report seeks Council's approval for in-year budget adjustments to the 2022 Approved Capital Budget and Plan.   

Table 1 below summarizes the City's 2022 actual capital expenditures compared with the 2022 approved capital budget for the period ended April 30, 2022 as well as the projected expenditures by December 31, 2022.

Table 1: Capital Variance Summary

*Note: Includes 2021 carry forward funding

The City's actual capital spending in the first four months is $668.8 million or 12.2% of the approved capital budget of the year. The projected spending rate of the year is 80.1% by year-end. Both the year-to-date spending and the year-end projection reflect the capital spending impacts resulting from paused 2022 capital projects, pending confirmation of full 2022 COVID-19 support funding from the federal and provincial governments, to ensure the City maintains a balanced 2022 Operating Budget while addressing the financial impacts continuing to arise from the pandemic.                                                                                        

Potential impact from the inter-governmental funding shortfall

The City continues to actively engage with Federal and Provincial counterparts at all levels to secure continued COVID-19 funding support. From March 2020 to year-end 2021, the City has benefited from nearly $2.9 billion in COVID-19 related emergency funding commitments from the federal and provincial governments, with additional estimated $525 million in funding support in 2022.The remaining 2022 COVID-19 related funding gap is currently estimated to be $875 million, however the gap decreases to $815 million if the City receives the continued full reimbursement of public health costs. In the event that continued COVID-19 funding is not forthcoming or adequate to fully address the financial impacts arising from the pandemic, the City's capital program will be materially impacted. In such case, a draw of up to $515 million from the City’s COVID-19 Backstop and a $300 million reduction to the 2022 Capital Budget would be required to ensure the City maintains a balanced 2022 Operating Budget while addressing the financial impacts continuing to arise from the pandemic.

Delays in receiving funding commitments will continue to impact the City's ability to award and deliver capital projects in 2022. Programs and Agencies have already begun preparing for the potential reduction to their capital budgets, and at this stage have identified or committed a total of $260 million of projects that are either paused or can be reduced as a result of 2022 underspending. Below are the main areas with the largest reductions accommodated (see appendix 6):

- TTC plans to reduce a total of $87.0 million, and is in the process of compiling a final list of capital projects which will be directly impacted, based on the $241.7 million in total projected 2022 underspending as detailed in Appendix 5.

- Transportation Services has identified $87.0 million in 2022 projected underspending based on paused capital projects, mainly impacting transportation infrastructure rehabilitation projects.  Projected underspending by project is detailed in Appendix 6.

- Corporate Real Estate Management has identified $34.2 million in reductions on capital projects, mainly impacting state of good repair projects across various locations.

- Parks, Forestry and Recreation has identified $27.7 million in reductions on capital projects, mainly impacting park site rehabilitation and state of good repair projects for various buildings and structures.

High inflation and global supply chain challenges continue to increase the cost escalation on capital project delivery. As well, a steep rise in prevailing interest rates has been increasing capital financing costs for new debt issuances. With the increasing financial pressure added to the uncertainty of the intergovernmental funding commitments, the projected spend rate continues to be impacted in 2022.

Despite the challenges mentioned, the City will continue to plan annual capital projects in line with both affordability and achievability, based on the historical actual capacity and in consideration of emerging challenges such as inflationary impacts and supply chain disruptions. The strategy is to build on improvements experienced to date and improve the capital spend rate in future years; fully utilizing approved funding and enabling any excess funding capacity to support additional capital priorities, while promoting realistic capacity to spend in light of external factors and challenges.

The Executive Committee recommends that:

1. City Council acknowledge the projected unfavourable year-end operating variance attributed to the COVID-19 financial impacts and remaining funding shortfall, absent of any further federal and provincial COVID-19 funding support.

2. City Council approve the budget adjustments and any associated complement changes detailed in Appendix D to the report (June 27, 2022) from the Chief Financial Officer and Treasurer to amend the 2022 Approved Operating Budget, with no impact on the Net Operating Budget of the City.

The purpose of this report is to provide City Council with the Operating Variance for the four months ended April 30, 2022 as well as projections to year-end. This report also requests City Council's approval for amendments to the 2022 Approved Operating Budget that have no impact on the City's 2022 Approved Net Operating Budget.

In 2022, the City continues to experience significant and unprecedented financial impacts, both in the form of added costs and revenue losses as a direct result of the COVID-19 pandemic. As a result, the 2022 Operating Budget was balanced based on the expectation of continued COVID-19 support funding from the Government of Canada and Province of Ontario with a total amount of $1.4 billion.

It is currently estimated that $525 million in 2022 COVID-19 support funding has been secured resulting in a $875 million COVID-19 funding shortfall in 2022. When including further funding expectations of $60 million for the anticipated but not yet committed Provincial reimbursement of extraordinary COVID-19 related Public Health costs, the remaining 2022 COVID-19 funding shortfall is further reduced to $815 million.

Table 1 below details the budgeted 2022 City-wide COVID-19 related financial impacts against secured and assured COVID-19 support funding; and the resulting financial position that is reflected in the year-end variance projections:

Table 1: 2022 Anticipated COVID-19 Financial Impacts

*Reflects preliminary City allocation estimate of transit funding commitments

For details regarding expected COVID funding from other levels of governments as well as the current status of committed funding, refer to the following report titled "2022 COVID-19 Intergovernmental Funding Update" submitted to the City Council in May:

https://www.toronto.ca/legdocs/mmis/2022/cc/bgrd/backgroundfile-225633.pdf

Tax Supported Programs:

The following table summarizes the projected year-end financial position of the City's Tax Supported Operations as of April 30, 2022.

Table 2: Tax Supported Operating Variance Summary

Four Month Year-to-Date and Projected Year-End Spending Results:

As noted in Table 2 above, for the four months ended April 30, 2022, Tax Supported Operations experienced an unfavourable net variance of $311.6 million or 8.2% of planned expenditures adjusted for Toronto Building and City Planning. It is important to note that the April 30th experience is a snapshot in time and the year-end projection is based on current and expected future impacts.  The continued impact of COVID-19 and any deviation from expectations to year end will impact variance projections.  Any changes will be reflected in variance reporting for the twelve months ending December 31, 2022.

For year-end, the City is projecting an unfavourable variance of $857.1 million or 6.5% of the 2022 Gross Operating Budget, adjusted for Toronto Building and City Planning. The projected unfavourable variance is predominantly attributed to the $815 million COVID-19 funding shortfall, coupled with greater than budgeted COVID-19 related pressures in Fire Services and Shelter Services, in addition to refugee response costs which have been further impacted by supports provided to those affected by the ongoing crisis in Ukraine; and additional pressures experienced in Transportation Services associated winter maintenance.

Rate Supported Programs:

Rate Supported Programs reported a favourable year-to-date net variance of $20.4 million. The favourable variance is attributed to positive revenue variances in Solid Waste Management creating a net variance of $19.1 million and lower spending in Toronto Water, compared to budget creating a net variance of  $2.7 million.

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 3: Rate Supported Operating Variance Summary

The Executive Committee recommends that:

1. City Council approve the renewal of the outstanding capital loan issued by the City to the Lakeshore Arena Corporation in the amount of $4,047,660 (interest payments only) for a three-year period commencing on November 1, 2022 and ending October 31, 2025.

2. City Council authorize the Chief Financial Officer and Treasurer to execute on behalf of the City a letter of guarantee, in a form approved by the City Solicitor, guaranteeing the due and punctual payment to the OMERS Sponsors Corporation (OMERS) of all obligations owing by the Toronto Seniors Housing Corporation to OMERS arising from the Toronto Seniors Housing Corporation’s obligation to pay employer and employee contributions to OMERS in respect of the employees employed by the Toronto Seniors Housing Corporation who are members in the OMERS pension plan(s) upon a failure by the Toronto Seniors Housing Corporation to remit such contributions when due for 120 consecutive days; and direct the Chief Financial Officer and Treasurer to review the continuing need for such guarantee every five years.

This report provides an annual update on the City's loan and loan guarantee portfolios, along with the details associated with each of the credit arrangements.

Under existing policies, as at December 31, 2021, the City has guaranteed operating lines of credit amounting to approximately $6 million, and almost $59 million in capital loans.

In addition, the City has an outstanding amount of $48 million in direct loans to City agencies and corporations which contribute to the financing of projects that create or enhance municipal capital facilities. None of these loans were in default during this reporting period.  One loan of approximately $12 million to the Bloor Street Transformation Project was fully repaid during this period.

Regular monitoring makes it possible to identify potential financial risks, and to take action to avoid or mitigate potential losses.

This report recommends a three-year term extension (to 2025) of an outstanding capital loan of $4.048 million to Lakeshore Arena Corporation.  This entity is currently undertaking a strategic planning exercise, the result of which may result in a recommended restructuring of outstanding loan balances, and therefore it is prudent to allow for the completion of this exercise before undertaking any third-party refinancing.

Additionally, this report recommends the provision of a letter of guarantee by the City, on behalf of Toronto Seniors Housing Corporation, to OMERS. This letter of guarantee would be for up to 120 days of projected employer and employee OMERS contributions to be made by TSHC, currently estimated at $1.34 million, plus associated costs.

The Executive Committee recommends that:  

1. City Council authorize that the 2023 interim levy for all property classes be based on 50 per cent of the total 2022 taxes billed for each property, adjusted, as necessary, to reflect any additional taxes added to the previous year's taxes as a result of assessment added to the tax roll.

2. City Council authorize that the interim levy apply to assessments added to the tax roll for 2022 that were not on the assessment roll when the by-law was passed.

3. City Council authorize that:

a. the interim bill payment due dates for property tax accounts paid on the eleven (11) installment pre-authorized tax payment plan be: February 15, March 15, April 17, May 15, and June 15, 2023;

b. the interim bill payment due date for the two (2) installment pre-authorized tax payment plan be March 1, 2023; and

c. the interim bill payment due dates for all other property tax accounts on the regular instalment option or on the six (6) instalment pre-authorized tax payment plan be: March 1, April 3, and May 1, 2023.

4. City Council grant authority to introduce the necessary bill in Council on November 16 and 17, 2022, providing for the levy and collection of the 2023 interim taxes prior to the adoption of the estimates for 2023, which by-law, when enacted, will be effective as of January 1, 2023.

This report recommends the adoption of the 2023 interim levy and requests authority to introduce the necessary by-law at the inaugural meeting of Council on November 16 and 17, 2022. The 2023 interim levy will raise approximately $2.44 billion for City purposes, and will provide for the cash requirements of the City until such time as the 2023 Operating Budget and 2023 final property tax levy are approved by Council.

The Executive Committee recommends that:

1. City Council receive the report (June 22, 2022) from the Controller for information.

This report is in response to motion 12a adopted by Council through item "EX30.2:  Capital and Operating Budgets". This report reviews the Property Tax, Water and Solid Waste Relief programs for low-income seniors and persons with disabilities and summarizes recent changes to the program and proactive efforts taken by the City to address possible barriers to participation into the program, related fees and the timing of posting information and forms.

Revenue Services has proactively made changes to reduce any potential barriers and ensure equity and access to the Property Tax, Water and Solid Waste Relief programs for low-income seniors and persons with disabilities. Some of these initiatives include the implementation of an online application portal and automated income verification with the Canada Revenue Agency (CRA), amending the eligibility criteria on household income for individuals that own the property with the applicant but do not live at the property, and automatic increases to the income thresholds to keep up with inflation. Throughout the COVID-19 pandemic, the City has extended the application deadline by two months to the end of October.

To further increase awareness of the relief programs, the City has engaged in targeted demographic advertising campaigns in community newspapers, radio, websites and social media platforms regularly visited by those over the age of 55. Revenue Services is also involved with the Seniors Strategy Accountability Table to continue to build on program awareness, communications and direct interactions.

The Executive Committee recommends that:

1. City Council authorize the levy and collection of taxes for the 2022 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) of the Education Act.

2. City Council request the Province of Ontario to enact regulations to prescribe a levy on Railway Roadway and Rights of Way and on Power Utility Transmission and Distribution Corridors for the 2022 taxation year, reflecting inflationary increases since 2018 when the current rates were reached.

This report seeks Council authority for the introduction of the by-law necessary to levy and collect taxes for the 2022 taxation year on railway roadways and rights-of-way and on land used as transmission or distribution corridors owned by power utilities, totalling approximately $7.05 million in taxation revenue, of which the municipal share is $6.54 million and the provincial education share is $0.51 million.

The 2022 levy total remains unchanged from the 2021 levy total of $7.05 million (with a $6.54 million municipal share and a provincial education share of $0.51 million). For 2022, the property tax rates for railway rights-of-way and hydro corridors remain unchanged from 2021.

Taxation of railway lands varies across Canada, with some provinces utilizing a per-acre rate for railway lands, and most western provinces using tonnage per linear kilometre rates. In Ontario, per-acre rates are not increased annually. From 2005 to 2016 railway rates remained static, followed by modest rate increases in 2017 and again in 2018, with no rate increases since. If railway and hydro rates had been indexed to inflation to reflect increases in the Consumer Price Index in each year since 2005, an additional $3M would be generated from the levy in 2022, including an increase in the municipal portion of revenues of approximately $1.4 million.

The Executive Committee recommends that:

1. City Council authorize the levy and collection of amounts for the 2022 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.

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.

This report requests Council authority to adopt a by-law to levy amounts for the 2022 taxation year for colleges and universities, public hospitals, and correctional facilities (the "institutions"), totalling $19.1 million (annual "Heads and Beds" levy).

If the rates had been increased to reflect increases in the Consumer Price Index in each year from 1987 to 2022 (such that the 2022 rate would be $160.23 for each full time student, provincially rated bed, or resident place), an additional $21.7 million in tax revenue would be received in 2022.

The Executive Committee recommends that:  

1. City Council amend Municipal Code Chapter 27, Council Procedures, Section 5.1 by deleting subsection A. and adding a new subsection A:

Subject to the Act and any other applicable legislation, Council holds its first meeting on the first Wednesday after the commencement of the Term of Council.

2. City Council amend Municipal Code Chapter 27, Council Procedures, Section 5.15 by replacing the existing subsection 5.15A with the following:

A.        Subjects for closed meetings.

(1)       Council or a committee may close a meeting to the public to discuss the following:

(a) Security of the City's or a local board's property;

(b) Personal matters about an identifiable individual, including City or local board employees;

(c) A proposed or pending land acquisition for City or agency purposes;

(d) Labour relations or employee negotiations;

(e) Litigation or potential litigation, including matters before administrative tribunals, affecting the City or a local board;

(f) Receiving advice that is subject to solicitor-client privilege, including communications necessary for that purpose;

(g) Information explicitly supplied in confidence to the City or local board by Canada, a province or territory or a Crown agency of any of them;

(h) A trade secret or scientific, technical, commercial, financial or labour relations information, supplied in confidence to the City or local board, which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization;

(i) A trade secret or scientific, technical, commercial or financial information that belongs to the City or local board and has monetary value or potential monetary value;

(j) A position, plan, procedure, criteria or instruction to be applied to any negotiations carried on or to be carried on by or on behalf of the City or local board;

(k) Educating or training the members, provided that no member discusses or otherwise deals with any matter that materially advances the business or decision-making of the City, local board or committee; or,

(l) A matter for which Council, a board, a committee or other body has authorized a meeting to be closed under another Act.

(2)       Council or a committee shall close a meeting to the public to discuss the following:

(a) A request under the Municipal Freedom of Information and Protection of Privacy Act; or,

(b) An ongoing investigation respecting the City, a local board or a city-controlled corporation by:

(1) the Ombudsman appointed under the Ombudsman Act,

(2) the City's Ombudsman; or,

(3) the City's Open Meeting investigator.

The purpose of this report is to amend City Council's Procedures with respect to the date of the first meeting of City Council and to reflect the subjects for which City Council may or shall close a meeting to the public. These amendments incorporate changes to the Municipal Elections Act, 1996 and the City of Toronto Act, 2006.

The Executive Committee recommends that:

1. City Council authorize the City Clerk and the General Manager, Economic Development and Culture, to enter into and administer a funding agreement with the Department of Canadian Heritage to receive $1,440,000 for the establishment of a COVID-19 Recovery Celebration and Commemoration Program.

2. City Council authorize the City Clerk and the General Manager, Economic Development and Culture, to establish and execute commemoration and celebration activities as part of the COVID-19 Recovery Celebration and Commemoration Program, and as Toronto recovers from the COVID-19 pandemic.

3. City Council authorize the City Clerk and the General Manager, Economic Development and Culture, to provide grants and/or enter into any agreements necessary to provide the funds to organizations or individuals to carry out commemoration and celebration activities consistent with the goals of the Celebration and Commemoration Program - Re-opening Fund.

4. City Council increase the 2022 Council Approved Operating Budget for Economic Development and Culture by $991,325 gross, $0 net, fully funded by the Department of Canadian Heritage grant to begin delivery of the COVID-19 Recovery Celebration and Commemoration Program.

5. City Council increase the 2022 Council Approved Operating Budget for City Clerk's Office by $134,333 gross, $0 net, fully funded by the Department of Canadian Heritage grant to begin delivery of the COVID-19 Recovery Celebration and Commemoration Program.

On June 20, 2022, the City of Toronto was confirmed as a successful recipient of Federal funding from the Department of Canadian Heritage as part of the Celebration and Commemoration Program - Reopening Fund. City staff applied for this grant funding to help support a program of commemorative and celebratory activities as Toronto recovers from the COVID-19 pandemic.  

Council authority for applications that support COVID-19 business and culture recover initiatives was provided to City staff in June 2021. To that end, this report provides details about this successful application and the program to be funded, and seeks Council approval to develop and deliver celebration and commemoration programs funded by the successful grant application in the amount of $1.44 million

The new COVID-19 Recovery Celebration and Commemoration Program (official program name to be confirmed) will be co-led by the City Clerk's Office and the Economic Development and Culture (EDC) division, and will provide an opportunity for Toronto residents to participate in various commemorative and celebratory activities as Toronto recovers from the COVID-19 pandemic; program beginning in November, 2022 running through March, 2023.

The Executive Committee recommends that:

1. City Council authorize the Deputy City Manager, Corporate Services, to execute an amendment to the agreement of purchase and sale, and any additional or ancillary agreements or amendments thereto required for the acquisition of the property identified in Confidential Attachment 1 to the report (June 27, 2022) from the Executive Director, Corporate Real Estate Management, substantially on the revised terms and conditions outlined in Confidential  Attachment 1 to the report (June 27, 2022) from the Executive Director, Corporate Real Estate Management, and on such terms and conditions as may be acceptable to the Deputy City Manager, Corporate Services and the Executive Director, Corporate Real Estate Management, and in a form satisfactory to the City Solicitor.

2. City Council increase the 2022-2031 Council Approved Capital Budget and Plan for Corporate Real Estate Management by the amount set out in Confidential Attachment 1 to the report (June 27, 2022) from the Executive Director, Corporate Real Estate Management, under capital project account (CCA226-01) "Strategic Property Acquisitions", funded from the Land Acquisition Reserve Fund (XR1012) to support the acquisition of the property identified in Confidential Attachment 1 to the report (June 27, 2022) from the Executive Director, Corporate Real Estate Management.

3. City Council authorize the public release of Confidential Attachment 1 to the report (June 27, 2022) from the Executive Director, Corporate Real Estate Management, following the later of April 30, 2023 or the closing of any purchase transaction and any other related ancillary agreements.

4. City Council forward the Item and Confidential Attachment 1 to the report (June 27, 2022) from the Executive Director, Corporate Real Estate Management to the CreateTO Board and the Toronto Transit Commission Board for their information and City Council request the CreateTO Board and the Toronto Transit Commission Board to keep Confidential Attachment 1 to the report (June 27, 2022) from the Executive Director, Corporate Real Estate Management confidential until the conditions specified in Recommendation 3 above are met.

This report seeks City Council authorization for an amendment to the terms and conditions of the agreement of purchase and sale for City's acquisition of an industrial property (the "Property") for the future site of a new Toronto Transit Commission ("T.T.C.") garage and maintenance facility (the "10th Garage"), as originally approved by City Council in December 2021 through item CC38.19.

The Property is considered to be a strategic acquisition that aligns with the T.T.C.'s Capital Investment Plan 2021-2035, T.T.C.'s Real Estate Investment Plan, CreateTO's Industrial Portfolio Strategy, and the Council-adopted Strategic Acquisition Policy under City-Wide Real Estate model, providing a new opportunity for the City to acquire additional industrial lands at the Property for municipal purposes. Confidential Attachment 1 to this report includes updates to the financial impact, the revised terms and conditions of the agreement of purchase and sale, and plans for the redevelopment and management of the Property for T.T.C. and City purposes.

The Executive Committee recommends that:

1. City Council treat that portion of the City Council meeting at which this Report is considered as the Annual General Meeting of the Shareholder for Toronto Seniors Housing Corporation by:

a. receiving the "Toronto Seniors Housing Corporation 2021 Annual Report", forming Attachment 1 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer;

b. receiving the "Toronto Seniors Housing Corporation 2021 Audited Consolidated Financial Statements", forming Attachment 2 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer;

c. appointing KPMG LLP as the Auditor of Toronto Seniors Housing Corporation for fiscal year 2022, and authorizing the Board of Directors of Toronto Seniors Housing Corporation to set the fee of the Auditor; and

d. receiving the Toronto Seniors Housing Corporation's executive compensation disclosure forming Attachment 3 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer.

2. City Council direct the City Clerk to forward a copy of the "Toronto Seniors Housing Corporation 2021 Audited Consolidated Financial Statements", forming Attachment 2 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer, to the Audit Committee for information.

3. City Council confirm the Toronto Seniors Housing Corporation By-law 1-2021, generally governing the business and affairs of the Corporation, forming Attachment 4 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer.

This report transmits materials submitted by the Board of Directors of Toronto Seniors Housing Corporation (TSHC) to the City. No independent review or analysis has been performed by City staff. Management of TSHC has confirmed all financial information was made available to the auditors for the performance of the audit.

This report recommends 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 TSHC, including receipt of its Annual Report and Audited Consolidated Financial Statements (Statements) for 2021 and appointment of the auditor for 2022.

TSHC's 2021 Statements were audited by KPMG LLP and received an unqualified opinion stating that the financial statements present fairly, in all material respects, the financial position of the TSHC as at December 31, 2021, and its results of operations for the year then ended in accordance with Canadian Public sector Accounting Standards.

The report provides information on individual compensation of executive officers as directed by the Shareholder.

It also recommends confirmation of TSHC's General By-law 1-2021. Under the OBCA, the Shareholder is required to confirm corporation by-laws.

The Executive Committee recommends that:

1. City Council treat that portion of the City Council meeting at which this Report 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, 2022 transmitting the "Toronto Community Housing Corporation 2021 Annual Report: Opening Doors with Purpose" and "Additional Information" (including Executive Compensation Disclosure), forming Attachment 1 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer;

b. receiving the "Toronto Community Housing Corporation 2021 Audited Consolidated Financial Statements", forming Attachment 2 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer;

c. appointing KPMG LLP as the Auditor of Toronto Community Housing Corporation for fiscal year 2022, and authorizing the Board of Directors of Toronto Community Housing Corporation to set the fee of the Auditor; and

d. receiving the Toronto Community Housing Corporation's executive compensation disclosure included in "Additional Information" of  Attachment 1 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer.

2. City Council direct the City Clerk to forward a copy of the "Toronto Community Housing Corporation 2021 Audited Consolidated Financial Statements", forming Attachment 2 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer, to the Audit Committee for information.

This report transmits materials submitted by the Board of Directors of Toronto Community Housing Corporation (TCHC) to the City. No independent review or analysis has been performed by City staff. Management of Toronto Community Housing Corporation (TCHC) has confirmed all financial information was made available to the auditors for the performance of the audit.

This report recommends 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 Community Housing Corporation (TCHC), including receipt of its Annual Report and Audited Consolidated Financial Statements (Statements) for 2021 and appointment of the auditor for 2022.

Toronto Community Housing Corporation's (TCHC's) 2021 Statements were audited by KPMG LLP and received an unqualified opinion stating that the financial statements present fairly, in all material respects, the financial position of the Toronto Community Housing Corporation (TCHC) as at December 31, 2021, and its results of operations for the year then ended in accordance with Canadian public sector accounting standards.

The report also provides information on subsidiaries and joint ventures, individual compensation of executive officers, and additional items as directed by the Shareholder.

The Executive Committee recommends that:

1. City Council treat that portion of the City Council meeting at which this report is considered as the Annual General Meeting of the Shareholder for Build Toronto by:

a. receiving the "Build Toronto Inc. 2021 Annual Report" Letter to the Shareholder from CreateTO's Chief Executive Officer transmitting the "CreateTO 2021 Performance Report", the "Build Toronto 2021 Audited Consolidated Financial Statements" forming Attachments 1 and 2 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer; respectively; and

b. appointing KPMG LLP as the Auditor of Build Toronto for fiscal year 2022.

2. City Council direct the City Clerk to forward a copy of the "Build Toronto 2021 Audited Consolidated Financial Statements", forming Attachment 2 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer, to the Audit Committee for information.

This report transmits materials submitted by the Board of Directors of Build Toronto (BT) to the City of Toronto (City). No independent review or analysis has been performed by City staff. Management of BT has confirmed all financial information was made available to the auditors for the performance of the audit.

This report recommends 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 Consolidated Financial Statements (Statements) for 2021 and appointment of the auditor for 2022.

Build Toronto's 2021 Statements were audited by KPMG LLP and received an unqualified opinion stating that the financial statements present fairly, in all material respects, the consolidated financial position of Build Toronto as of December 31, 2021, and its consolidated financial performance for the year then ended in accordance with International Financial Reporting Standards (IFRS).

The Executive Committee recommends that:

1. City Council treat that portion of the City Council meeting at which this Report is considered as the Annual General Meeting of the Shareholder for Toronto Port Lands Company by:

a. receiving the "Toronto Port Lands Company 2021 Annual Report" Letter to the Shareholder from the CreateTO's Chief Executive Officer transmitting the "CreateTO's 2021 Performance Report", the "City of Toronto Economic Development Corporation c.o.b. Toronto Port Lands Company 2021 Audited Consolidated Financial Statements" forming Attachments 1 and 2 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer; and

b. appointing KPMG LLP as the Auditor of Toronto Economic Development Corporation (operating under the name Toronto Port Lands Company) for fiscal year 2022.

2. City Council direct the City Clerk to forward a copy of the "City of Toronto Economic Development Corporation c.o.b. Toronto Port Lands Company 2021 Audited Consolidated Financial Statements", forming Attachment 2 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer, to the Audit Committee for information.

This report transmits materials submitted by the Board of Directors of the Toronto Port Lands Company (TPLC) to the City of Toronto (City). No independent review or analysis has been performed by City staff. Management of TPLC has confirmed all financial information was made available to the auditors for the performance of the audit.

This report recommends 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 Economic Development Corporation (TEDCO), operating as the Toronto Port Lands Company (TPLC), including receipt of its Annual Report and Audited Consolidated Financial Statements (Statements) for 2021 and appointment of the auditor for 2022.

TPLC's 2021 Statements were audited by KPMG LLP and received an unqualified opinion stating that the financial statements present fairly, in all material respects, the consolidated financial position of TPLC as of December 31, 2021, and its consolidated financial performance for the year then ended in accordance with International Financial Reporting Standards, (IFRS).

The Executive Committee recommends that:

1. City Council, in its capacity as one of the Shareholders of Toronto Pan Am Sports Centre Inc. adopt and authorize the City Manager to sign the Resolutions of the Shareholders attached as Attachment 1 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer on behalf of the City that:

a. Financial Statements

The "Toronto Pan Am Sports Centre Inc. 2021 Annual Report, and the "Toronto Pan Am Sports Centre Inc. 2021 Audited Annual Financial Statements", including the auditor's report dated March 14, 2022, forming Attachments 2 and 3 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer are received;

b. Appointment of Auditors

Welch LLP are appointed as the Auditor of Toronto Pan Am Sports Centre Inc. for fiscal year 2022, and until the close of the next annual meeting of the Shareholders or until their successors are duly appointed, and the Board of Directors of Toronto Pan Am Sports Centre Inc. authorized to fix the remuneration of the Auditor; and

c. Confirmation of Proceedings

All by-laws, contracts, acts, proceedings, appointments, elections and payments of any director or officer of Toronto Pan Am Sports Centre Inc. that were enacted, made, done or taken since the last annual meeting of Shareholders of Toronto Pan Am Sports Centre Inc. are approved, ratified, sanctioned and confirmed.

2. City Council adopt and authorize the City Manager to sign the Resolutions of Shareholders forming Attachment 4 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer:

a. Ratifying and approving the 2022 Operating and Capital Budgets of Toronto Pan Am Sports Centre Inc. attached as Schedules A and B to Attachment 4 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer; and

b. Authorizing any two directors or officers to carry out the provisions of the resolutions passed by the Shareholders of Toronto Pan Am Sports Centre.

3. City Council direct the City Clerk to forward a copy of the "Toronto Pan Am Sports Centre Inc. 2021 Audited Annual Financial Statements", forming Attachment 3 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer, to the Audit Committee for information.

This report transmits materials submitted by the Board of Directors of the Toronto Pan Am Sports Centre (TPASC) to the City and recommends 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 Pan Am Sports Centre Inc., including receipt of its Annual Report and Audited Financial Statements (Statements) for 2021 and appointment of the auditor for 2022. No independent review or analysis has been performed by City staff. Representatives from the Board of Directors for TPASC have confirmed all financial information was made available to the auditors for the performance of the audit.

This report contains recommendations to approve the 2022 operating and capital budgets of TPASC approved by the TPASC Board of Directors. Section 5.05(a) of the Unanimous Shareholders’ Agreement of the Corporation as of December 18, 2013, provides that the annual operating and capital budgets shall be considered and approved by the Board and subject to approval by the Shareholders of the Corporation. The City and the Governing Council of The University of Toronto are the two Shareholders of TPASC.

The requirements of the OBCA regarding the annual general meeting and the requirements of the Unanimous Shareholders’ Agreement regarding approval of the annual operating and capital budgets are being satisfied by written joint resolutions of the Shareholders, as provided in this report.

The OBCA provides that a resolution in writing signed by all the Shareholders entitled to vote on that resolution at a meeting of the Shareholders is as valid as if it had been passed at a meeting of the Shareholders; and a resolution in writing dealing with all matters required by the OBCA to be dealt with at an annual meeting of Shareholders, and signed by all the Shareholders entitled to vote at that meeting, satisfies all the requirements of the OBCA relating to that meeting of Shareholders.

TPASC's 2021 Statements were audited by Welch LPP and received an unqualified opinion stating that the financial statements present fairly, in all material respects, the financial position of the TPASC as of December 31, 2021, and its results of operations, for the year then ended, in accordance with Canadian Public Sector Accounting Standards.

The Executive Committee recommends that: 

1. City Council treat the portion of the City Council meeting at which this report is being considered as the Annual General Meeting of the Shareholder for Toronto Hydro Corporation, by:

a. approving the "Resolution of the Sole Shareholder Re-appointing Auditor" in Attachment 1b to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer in order to re-appoint KPMG LLP as the auditor for Toronto Hydro Corporation for 2022 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. receiving the "Toronto Hydro Corporation 2021 Annual Report," "Toronto Hydro Corporation 2021 Annual Financial Report and Audited Consolidated Financial Statements," "Toronto Hydro Corporation Annual Information Form 2021," "Toronto Hydro Corporation CEO and CFO Certifications of Annual Filings 2021," "Toronto Hydro Corporation First Quarter Financial Report 2022," and the "Toronto Hydro Corporation Statement of Board Remuneration and Expenses 2021," forming Attachments 2a, 2b, 3, 5, 7, 8a and 8b respectively to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer;

c. receiving the "Toronto Hydro Corporation Environmental Performance Report 2021," "2021 Toronto Hydro Environmental, Social Responsibility and Governance Report," and "2021 Toronto Hydro Environmental, Social Responsibility and Governance Metrics," forming Attachments 4a, 4b and 4c respectively to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer;

d. receiving the "Toronto Hydro Corporation Shareholder Report 2021, including Non-Consolidated Financial Statements 2021 and 2020," "Toronto Hydro-Electric System Limited Financial Statements 2021 and 2020," and "Toronto Hydro Energy Services Inc. Financial Statements 2021 and 2020," forming Confidential Attachments 2, 3 and 4 respectively to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer; and

e. receiving the two-part report "Toronto Hydro Corporation Executive Compensation Disclosure 2021" forming Attachment 6 and Confidential Attachment 1 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer.

2. City Council direct that Confidential Attachment 1 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer remain confidential in its entirety as it deals with personal information about identifiable individuals.

3. City Council direct that Confidential Attachments 2, 3, and 4 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer 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.

4. City Council direct the City Clerk to forward a copy of the "Toronto Hydro Corporation Consolidated Financial Statements December 31, 2021 and 2020," included as part of Attachment 2b to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer, to the Audit Committee for information.

This report transmits materials submitted to the City by the Board of Directors of the Toronto Hydro Corporation (THC). No independent review or analysis has been performed by City staff. Management of THC has confirmed all financial information was made available to the auditors for the performance of the audit.

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 including receipt of Toronto Hydro Corporation's audited annual consolidated financial statements (Statements) for 2021 and appointment of the auditor for Toronto Hydro Corporation for 2022.

Toronto Hydro Corporation's 2021 Statements were audited by KPMG LLP and received an unqualified opinion stating that the financial statements present fairly, in all material respects, the THC financial position as at December 31, 2021 and the 2021 results of operations.  The THCs financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS).

This report contains recommendations for receipt at the Annual General Meeting of the Shareholder of information disclosing the individual compensation of executive officers employed by Toronto Hydro Corporation in 2021.

The Executive Committee recommends that:

1. City Council treat that portion of the City Council meeting at which this Report is considered as the Annual General Meeting of the Shareholder for Lakeshore Arena Corporation by:

a. receiving the "Lakeshore Arena Corporation 2021 Annual and Cover Report", and the "Lakeshore Arena Corporation 2021 Audited Financial Statements", forming Attachments 1 and 2 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer, respectively;

b. appointing Welch LLP as the Auditor of Lakeshore Arena Corporation for fiscal year 2022, and authorizing the Board of Directors of Lakeshore to fix the remuneration of the Auditor; and

c. receiving the "Lakeshore Arena Corporation Executive Compensation Disclosure 2021", forming Attachment 3 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer;

2. City Council direct the City Clerk to forward a copy of the "Lakeshore Arena Corporation 2021 Audited Financial Statements", forming Attachment 2 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer, to the Audit Committee for information.

This report transmits materials submitted by the Board of Directors of Lakeshore Arena Corporation (LAC) to the City. No independent review or analysis has been performed by City staff. Representatives from the Board of Directors for Lakeshore Arena Corporation (LAC) have confirmed all financial information was made available to the auditors for the performance of the audit.

This report recommends actions necessary to comply with the requirements of the Business Corporations Act, Ontario (OBCA) for holding the Annual General Meeting of the Shareholder of Lakeshore Arena Corporation (LAC), including receipt of its Annual Report and Audited Financial Statements (Statements) for 2021 and appointment of the auditor for 2022.

Lakeshore Arena Corporation (LAC's) 2021 Statements were audited by Welch LLP and received an opinion stating that the financial statements present fairly, in all material respects, the financial position of the Lakeshore Arena Corporation (LAC) as at December 31, 2021, and its results of operations, changes in net debt and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

This report also contains recommendations for receipt of information disclosing the individual compensation of executive officers employed by Lakeshore Arena Corporation (LAC) in 2021 at the Annual General Meeting of the Shareholder.

The Executive Committee recommends that:

1. City Council treat that portion of the City Council meeting at which this Report is considered as the Annual General Meeting of the Shareholder for Casa Loma Corporation by:

a. receiving the "Casa Loma Corporation 2021 Audited Financial Statements", forming Attachment 1 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer; and

b. appointing Welch LLP as the Auditor of Casa Loma Corporation for fiscal year 2022 and authorizing the Board of Directors of Casa Loma Corporation to fix the remuneration of the Auditor.

2. City Council direct the City Clerk to forward a copy of the "Casa Loma 2021 Audited Annual Financial Statements", forming Attachment 1 to the report (June 27, 2022) from the City Manager and Chief Financial Officer and Treasurer, to the Audit Committee for information.

This report transmits materials submitted by the Board of Directors of Casa Loma Corporation to the City. No independent review or analysis has been performed by City staff. Representatives from the Board of Directors for Casa Loma have confirmed all financial information was made available to the auditors for the performance of the audit.

This report recommends actions necessary to comply with the requirements of the Business Corporations Act, Ontario (OBCA) for holding the Annual General Meeting of the Shareholder for Casa Loma Corporation, including receipt of its Audited Financial Statements (Statements) for 2021 and appointment of the auditor for 2022.

Casa Loma's 2021 Statements were audited by Welch LLP and received an opinion stating that the financial statements present fairly, in all material respects, the financial position of Casa Loma as at December 31, 2021, and its results of operations and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

This report transmits additional materials submitted by the Chair of the Board of the Casa Loma Corporation to the City, which provides comments on 2021 achievements, the current situation and future plans for Casa Loma, and the 2021 impact of COVID-19 on the Corporation, intended to supplement materials previously submitted for Item EX34.33.

The Executive Committee recommends that:

1. City Council authorize the reallocation of cashflows within Toronto Water’s approved 2022 Capital Budget and  2023-2031 Capital Plan in the amount of $23.798 million, for acceleration and deferral of projects, as presented in Schedule A (Part A and B) to the report (June 9, 2022) from the General Manager, Toronto Water, with a zero Budget impact.

2. City Council authorize the reallocation of project costs and cashflows in Toronto Water's Approved 2022 Capital Budget and 2023-2031 Capital Plan in the amount of $28.915 million from projects that have been awarded under budget or completed to those requiring additional funding in the same amount as presented in Schedule A (Part C) to the report (June 9, 2022) from the General Manager, Toronto Water, with a zero Budget impact.

3. City Council amend the 2022-2031 Capital Budget and Plan for Toronto Water by converting previously approved future estimates for the 10 Year Engineering Project and increasing total project costs by $69.750 million in 2022 and cash flow commitments by $7.750 million, $18.000 million, $18.000 million, $18.000 million, $2.500 million and $1.500 million in 2023, 2024, 2025, 2026, 2027 and 2028 respectively, funded by Toronto Water Capital Financing Reserve Funds for Water and Wastewater ($69.750 million) as presented in Schedule A, Part D to the report (June 9, 2022) from the General Manager, Toronto Water.

This report requests City Council's authority to amend Toronto Water's Approved 2022 Capital Budget and 2023-2031 Capital Plan by adjusting project  cash flows contained within the Budget and Plan, respectively, to align forecasted project accelerations and deferrals.  Additional reallocations to project cashflows and project costs are requested where project costs exceed the current approved cashflows and project costs. 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 2022 Capital Budget and 2023-2031 Capital Plan and will align the budget and plan with Toronto Water's capital project delivery schedule and program requirements.

In addition, City Council's authority is requested to amend Toronto Water's Approved 2022 Capital Budget and 2023-2031 Capital Plan by converting already approved future year cost estimates and increasing project costs and cashflow commitments in order to support the engineering services required for the delivery of planned 2024-2026 Watermain, Sewer and Water Service Replacement projects, scheduled to be awarded ahead of schedule in late 2022.

The Executive Committee recommends that:

1. City Council direct that the 2020 operating surpluses totalling $50,669 from Moss Park Arena be paid to the City of Toronto and be used, in part, to fund the cumulative operating deficit of $682,634 for six Arenas (George Bell, William H. Bolton, Forest Hill Memorial, McCormick, North Toronto Memorial and Ted Reeve), resulting in a net operating deficit of $631,965 to be funded by the City, as illustrated in Appendix A, column (g), to the report (June 9, 2022) from the Chief Financial Officer and Treasurer.

2. City Council direct that a funding provision of $631,965 be made through the 2021 Year-End Operating Variance Report, as shown in Appendix A – 2020 Program Summary, attached the report (June 9, 2022) from the Chief Financial Officer and Treasurer

On an annual basis, the City of Toronto receives the audited financial statements from eight Arena Boards of Management (Arenas). The audited financial statements allow the City to determine whether additional operating subsidy payments need to be provided to or clawed back from the Arenas to settle their operating deficits or surpluses. City staff report annually on the Arenas' operating surpluses and deficits once the respective Boards financial statements have been audited and approved by Council.

This report recommends the settlement of seven of the Arenas' operating surpluses and deficits for 2020 based on their audited financial statements for the year ended December 31, 2020, with operating surpluses payable to the City and operating deficits funded by the City upon Council’s approval.

At the time of preparation of this report, the 2019 and 2020 audited financial statements for Leaside Memorial Community Gardens Arena remain in progress and therefore the settlement for this outstanding Arena will be presented in a future report for consideration and approval purposes.

While normally the prior year end settlement reports for both Association of Community Centres and Arena Boards are submitted together to Council in the following year, the 2020 settlement reports were delayed due to delays in completing the 2020 audits, and further delayed by the impact of COVID-19 on the City's 2021 priorities. City staff will present the 2021 Settlement Reports at the first opportunity to the new term of City Council for consideration and approval.

The Executive Committee recommends that:

1. City Council direct the 2020 operating surpluses of five of the centres (Applegrove Community Complex, Cecil Street Community Centre, Central Eglinton Community Centre, Community Centre 55 and Ralph Thornton Community Centre) totalling $181,633 be paid to the City of Toronto and the City of Toronto provide five centres (Eastview Neighbourhood Community Centre, Scadding Court Community Centre, Swansea Town Hall Community Centre, Waterfront Community Centre and 519 Church Street Community Centre) with supplementary subsidies to fund the operating deficits totalling $65,424, resulting in a net operating surplus of $116,209 to be received by the City, as illustrated in Appendix A to the report (June 9, 2022) from the Chief Financial Officer and Treasurer.

On an annual basis, the City of Toronto receives the audited financial statements from 10 Association of Community Centres (AOCCs). The audited financial statements allow the City to determine whether additional operating subsidy payments need to be provided to or clawed back from the AOCCs to settle their operating deficits or surpluses.

This report recommends settlement with the Association of Community Centres for 2020 based on their audited financial results as of December 31, 2020.

While normally the prior year end settlement reports for both Association of Community Centres and Arena Boards are submitted together to Council in the following year, the 2020 settlement reports were delayed due to delays in completing the 2020 audits, and further delayed by the impact of COVID-19 on the City's 2021 priorities. City staff will present the 2021 Settlement Reports at the first opportunity to the new term of City Council for consideration and approval.

The Executive Committee recommends that:

1. City Council reassert the Mission of the Reconciliation Action Plan which states that "The City will dedicate time, space, and money with the goal of Returning land to Indigenous governments, communities, collectives, and organizations" and further include that the mission of the Reconciliation Action Plan applies to agencies, boards and commissions, including Waterfront Toronto and CreateTO, and should be a core consideration in redevelopment of all City-owned properties.

At its meeting on June 13, 2022, the Aboriginal Affairs Advisory Committee considered Item AA18.2 and made a recommendation to City Council.

The Executive Committee recommends that:

1. City Council direct the City Manager to, as part of the 2023 budget process to develop a dedicated source of revenue to fully implement the Reconciliation Action Plan and present any recommendations to the Aboriginal Affairs Advisory Committee in 2023.

At its meeting on June 13, 2022, Aboriginal Affairs Advisory Committee considered Item AA18.6 and made a recommendation to City Council.

The Executive Committee recommends that:

1. City Council forward the presentation from the ICES Scientists to the Board of Health and Toronto Public Health with the request that they be invited to present the information at an upcoming meeting.

The Toronto Accessibility Advisory Committee considered Item DI21.6 and made a recommendation to City Council.

The Executive Committee recommends that:

1. City Council receive for information, the Federation of Canadian Municipalities Summary Report Spring Conference June 2 to 5, 2022 (June 27, 2022) from Councillor Paul Ainslie, Ward 24, Scarborough-Guildwood.

From June 2 to 5, 2022 I was one of the representatives of the City of Toronto at the Federation of Canadian Municipalities’ (FCM) Annual Conference and Trade Show. I joined 1,200 municipal leaders from coast to coast came together in Regina, Saskatchewan.

I attended workshops, listened to panel discussions, visited the trade show, and connected with colleagues and friends. After two years of dealing with COVID this event It was the largest gathering of the municipal family since the Spring of 2019, and all who attended shared a common goal: to shape Canada’s recovery, together.

Workshops and panels, I attended:

- Blanket Exercise: Reconciliation Through Learning

- Ontario Regional Caucus Meeting

- How Municipalities Are Driving Market Housing Solutions

- A Closer Look at Municipal Innovation

- Using Consumer Spending Data to Drive Recovery

- The Changing Face of Digital Collaboration: Working Together to Change the Face of Communities

- Creating Impactful Videos for Elected Officials

- How Indigenous-Municipal Partnerships Are Driving Reconciliation

- Municipal Funding; An Equity Lens

Throughout the four-day event, delegates also heard from national party leaders - including Prime Minister Justin Trudeau, Minister of Intergovernmental Affairs, Infrastructure and Communities Dominic LeBlanc, Conservative Shadow Minister for Infrastructure and Communities, Andrew Scheer, and NDP Leader Jagmeet Singh.

The FCM Annual General Meeting was held on Sunday and was an incredible success. I joined members in passing resolutions calling for national action on four key issues:

1. Addressing period poverty in Canada;

2. Implementing the calls to action from the Truth and Reconciliation Committee relating to missing children and unmarked graves;

3. Renewing and modernizing the Canada Community-Building Fund;

4. Streamlining support for those fleeing the conflict in Ukraine.

During the Annual General Meeting, delegates ratified FCM’s 2022–2023 table officers and board of directors, and we are pleased to report we have another strong team that will serve our members well in the challenges ahead. Thank you to everyone who put their name forward.

Here is FCM’s 2022–2023 Board of Directors:

- President: Taneen Rudyk (Councillor, the Town of Vegreville, AB)

- First Vice-President: Scott Pearce (Mayor, Canton of Gore, QC)

- Second Vice-President: Geoff Stewart (Deputy Mayor, Municipality of the County of Colchester, NS)

- Third Vice-President: Rebecca Bligh (Councillor, City of Vancouver, BC)

- Past President: Joanne Vanderheyden (Mayor, Municipality of Strathroy-Caradoc, ON)

The Executive Committee recommends that:

1. City Council receive for information, the Ontario Good Roads Summary Annual General Conference and Meeting (June 27, 2022) from Councillor Paul Ainslie, Ward 24, Scarborough-Guildwood.

As one of two appointees to the Board of Directors of Good Roads, representing the City of Toronto, I would like to present the following summary of the Annual General Conference and Meeting.

To those not familiar with Good Roads, it is a municipal association concerned with the advancement of roads and other infrastructure in Ontario. Based in Oakville, Ontario, they have been devoted to the cause of better roads since 1894. Originally known as the Ontario Good Roads Association (and still using this name corporately), they have more than 450 member governments, including most of Ontario’s municipalities and a growing number of First Nations, as well as dozens of affiliated corporate members in the transportation and infrastructure sectors. Their purpose, in part, is to connect members to each other, to other levels of government, and to relevant companies in the private sector. Members look to Good Roads for training, knowledge, political advocacy, and answers to their most pressing problems. Good Roads is resolutely independent.

Four key goals for the upcoming year were established by membership at the conference:

1. Gas Tax

Good Roads is undertaking a study which will examine the future of the Gas Tax. The modality shift toward active transportation, economic populism and increasing consumer preference for hybrid and electric vehicles are all having an impact on this fiscal lever. The federal government’s decision to phase out gasoline and diesel-powered light-duty vehicles by 2035 will have a further profound impact on the Gas Tax revenues. At the provincial level, funds derived from the Gas Tax are directed toward municipally managed transit systems.

2. Road condition assessment for asset management planning using drones

Good Roads is working with researchers at Fanshawe College in London, Ontario to test the viability of using drones to perform road condition assessments. The upside of this innovation would help provide the requisite data needed to build out asset management plans but would allow municipalities to do it in a cost-effective, environmentally responsible and safe

manner. 

3. Vision Zero

Good Roads continues to advocate for the adoption of a province-wide Vision Zero program. As a first step, Good Roads has asked the Minister of Transportation to convene an Ministerial Advisory Committee to make recommendations about what would need to be accomplished to realize the full range of benefits associated with having a robust Vision Zero regime put in place in Ontario.

4. Development of Online training options

Good Roads is working with Waterloo-based online training industry leader D2L to convert 10 of their most popular courses into online training offerings. This initiative will allow municipal staff from across Ontario to access this highly regarded training regardless of where they may be in Ontario. It will also allow students to overcome cost and excess time away from the office. Initiatives like this are critical for municipalities and their staff members. This training is needed local governments prepare to provide the levels of service and asset performance that Ontarians expect.

At the 2022 Good Roads Conference, the membership of Ontario’s oldest municipal association elected a record number of women to its Board of Directors. For the first time in its history, one-third of the Directors are women. More than 1,500 professionals attended the conference which was held in Toronto from April 10 – 13, 2022.

The Good Roads 2022-2023 Board of Directors includes:

- Paul Schoppmann, President, and Mayor, Municipality of St. Charles

- John Parsons, First Vice-President and Division Manager, Road Operations and Forestry, City of London

- Bryan Lewis, Second Vice-President and Councillor, Town of Halton Hills

- Antoine Boucher, Director of Public Works and Engineering, Municipality of East Ferris, Third Vice-President

- Dave Burton, Immediate Past President and Mayor, Municipality of Highlands East

- Melissa Abercrombie, Manager, Engineering Services, Oxford County

- Paul Ainslie, Councillor, City of Toronto

- Chris Angelo, Director of Public Works & Environmental Services, City of Quinte West

- David Armstrong, Manager of Public Works, Town of Gananoque

- Nazzareno Capano, Manager of Transportation Policy and Innovation, City of Toronto

- Aakash Desai, Deputy Mayor, Municipality of Grey Highlands

- Kelly Elliott, Deputy Mayor, Municipality of Thames Centre

- Cheryl Fort, Mayor, Township of Hornepayne

- Donna Jebb, Councillor, Town of New Tecumseth

- Kristin Murray, Councillor, City of Timmins

The Executive Committee recommends that:

1. City Council request the Province of Ontario to amend the City of Toronto Act, 2006 so that if a City Council vacancy occurs after March 31 in the year of a regular election, the City is not required to fill the vacancy.

During every term of City Council several Councillor seats are vacated. These positions are filled by a by-election or an appointment made by Council. The City of Toronto Act outlines the process for filling vacancies, by either requiring a by-election, or by appointing a qualified person. By-elections cannot be held after March 31 in the year of a general election.

Section 208, subsection 3, paragraph 3 of the City of Toronto Act currently states that if a vacancy occurs within 90 days before voting day of a regular election, the City is not required to fill the vacancy.

I asked the City Clerk's Office to help determine how this process may be improved.  As a result of these discussions, I am putting this motion forward to request the Province of Ontario to amend the City of Toronto Act so that if a City Council vacancy occurs after March 31 in the year of a regular election, the City is not required to fill the vacancy.

Residents of Toronto should decide who acts on their behalf at City Council. By-elections are the ideal method of choosing a new Councillor. Only when absolutely necessary should Council decide to appoint individuals to a City Councillor position such as when there are multiple vacancies and there is a need to ensure quorum and functionality of our committees, boards, and Council, etc.

Council should, however, make certain that the regular day to day operations of a Ward Office continue when its Council seat is vacant. In 2018 (EX35.20), this Council authorized the City Clerk to provide administrative management of a vacant Council Member office including, but not limited to, purchasing and staffing matters. The staff will be responsible for the operations of the Ward Office and will assure that constituents are being served.

The Audit Committee recommends that:

1.  City Council approve the 2021 Audited Consolidated Financial Statements in Appendix A to the report (June 24, 2022) from the Chief Financial Officer and Treasurer and the Controller.

2.  City Council approve the 2021 Audited Sinking Fund Financial Statements in Appendix B to the report (June 24, 2022) from the Chief Financial Officer and Treasurer and the Controller.

3.  City Council approve the transfer of the surplus cash balance of $14 million in response to the maturity of the 5 percent sinking fund to the active 3.5 percent sinking fund.

4.  City Council authorize the Chief Financial Officer and Treasurer, or designate, to reallocate surplus cash resulting from the closure of any sinking funds after the debt for which the sinking fund was established has been fully paid, to another active sinking fund.

5.  City Council approve the 2021 Audited Consolidated Trust Funds Financial Statements in Appendix C to the report (June 24, 2022) from the Chief Financial Officer and Treasurer and the Controller.

The Director, Accounting Services and the Manager, Financial Reporting, Accounting Services gave a presentation on City of Toronto on Year-End 2021: Our Road to Recovery.

This report presents the City of Toronto's (City) Audited Consolidated Financial Statements (Consolidated Statements), the Audited Sinking Fund Financial Statements (SF Statements) and the Consolidated Trust Funds Financial Statements (TF Statements) for the year ended December 31, 2021, for approval, to the Audit Committee and City Council.

The report provides highlights of financial performance and financial condition as at December 31, 2021. All City financial statements are prepared in accordance with Public Sector Accounting Standards (PSAS) established by the Public Sector Accounting Board (PSAB) of the Chartered Professional Accountants (CPA) of Canada.

The Consolidated Statements include all City divisions and entities within the City's control; a full list is included in Note 1 accompanying the Consolidated Statements. Highlights of 2021's financial results are as follows:

- Statement of Financial Position: the City recognized financial assets of $14.9 billion, liabilities of $23.3 billion, net debt of $8.4 billion, and non-financial assets, comprised mainly of the City's tangible capital assets used to support the delivery of City services, of $38.8 billion.

- Although the City's net debt decreased by $0.2 billion, the balance of $8.4 billion continues to signify that the City will need to identify future sources of revenue to settle its liabilities given that the City does not currently have sufficient financial assets to settle anticipated expenditures in future fiscal periods; and

- Statement of Operations: the City recognized revenues of $15.2 billion, which included $1.8 billion of government grants provided by senior levels of government, such as those provided under the Safe Restart arrangement and the Province of Ontario's vaccination program, to support the City's pandemic efforts, in addition to supportive housing and refugee costs. . The City also incurred expenses of $13.2 billion, which reflects costs incurred in 2021 to provide critical frontline services to residents and businesses within public health guidelines.  

Consistent with other Canadian municipalities, the City is legislatively required to have a balanced budget and therefore, is prohibited to budget for a deficit. In order to comply with these legislative requirements, the City uses a cash basis of accounting for budgeting purposes; however, the Consolidated Statements are prepared and presented using an accrual basis of accounting, which is required under PSAS. As the City uses a different methodology to prepare the budget versus the financial statements, financial statement users may note that the way in which the City calculates its budget in each of these financial documents is different. As a result, the City includes a separate reconciliation to illustrate key differences in accounting principles, such as the recognition of tangible capital assets and associated amortization costs on the Consolidated Statements, and explains why an accounting surplus is recognized. In the Consolidated Statements, the City recognized an accounting surplus of $2.0 billion in the current year.

The Sinking Funds, which form part of the City's consolidated cash balances, are a significant financial resource for the City, especially as these assets are ultimately used to discharge the City's debt in accordance with the timing of when its loans mature. The Sinking Funds are accumulated and invested throughout the year and reduce the City's reliance on its own-source cash when making its debt repayments.

The Trust Funds are assets benefiting the City and its Agencies and Corporations, mainly held in cash and investments and administrated through the City and the Toronto Police Services Board. Although these trust funds are assets to the City and its consolidated entities, they represent liabilities to third parties and therefore, are not included in the City's Consolidated Statements.

The City's management team is responsible for preparing the Consolidated Statements (Appendix A), SF Statements (Appendix B), and the TF Statements (Appendices C and D) in accordance with PSAS, as well as ensuring that appropriate internal controls are in place to safeguard the City's assets and financial information.

The City's external auditors, KPMG LLP (KPMG), are responsible for providing an opinion on the fair presentation of the above financial statements in accordance with PSAS. KPMG executes audit procedures in order to gather sufficient and appropriate audit evidence with which to form an opinion on the City's financial statements. In performing their work, KPMG may recommend adjustments to the City's balances or note disclosures included in its financial statements, or improvements to management's internal processes and internal controls. KPMG's Year End 2021 Audit Findings Report comprises a separate submission to the Audit Committee. KPMG has issued an unqualified audit opinion on the City's 2021 Consolidated Statements, SF Statements, and TF Statements.

The Audit Committee is responsible for approving the financial statements prior to City Council's approval.

The Audit Committee recommends that:

1.  City Council request the Auditor General to direct the City's external auditor to promptly report to the Audit Committee any identified control deficiencies determined to be of significant importance to merit the attention of management or those charged with governance.

2. City Council direct the City Manager to implement the 55 recommendations in the Management letter (December 15, 2021) from KPMG LLP (for the year 2020), in alignment with implementation timelines.

3. City Council request the Chief Financial Officer and Treasurer to track the progress, in consultation with the responsible divisional leaders, on addressing the 55 recommendations in the Management letter (December 15, 2021) from KPMG LLP (for the year 2020),  and any subsequent recommendations, and to report at least twice annually through the Variance Report to City Council, until such time as implementation is complete.

Kevin Travers, Lead Audit Engagement Partner, KPMG LLP and Maria Khoushnood, Project Management Partner, KPMG LLP gave a presentation on The City of Toronto Audit Findings Report for the Year Ended December 31, 2021.

The Controller, Finance and Treasury Services gave a presentation on KPMG Audit Recommendations.

Kevin Travers, Lead Audit Engagement Partner, KPMG LLP and Maria Khoushnood, Project Management Partner, KPMG LLP will give a presentation on The City of Toronto Audit Findings Report for the Year Ended December 31, 2021.

The Audit Committee recommends that:

1.  City Council receive the 2021 Financial Statements and related documents for the year ended December 31, 2021 from the following City of Toronto Agencies for information:

a. Exhibition Place;

b. Heritage Toronto;

c. TO Live;

d. Toronto Parking Authority;

e. Toronto Public Library;

f. Toronto Transit Commission;

g. Toronto Zoo; and

h. Yonge-Dundas Square

The following agencies have submitted 2021 Financial Statements and related documents for the year ended December 31, 2021 to the Audit Committee for consideration:

- Exhibition Place

- Heritage Toronto

- TO Live

- Toronto Parking Authority

- Toronto Public Library

- Toronto Transit Commission

- Toronto Zoo

- Yonge-Dundas Square

Financial Statements for Exhibition Place for the year ended December 31, 2021.

Financial Statements for Heritage Toronto for the year ended December 31, 2021.

Financial Statements for TO Live for the year ended December 31, 2021.

Financial Statements for Toronto Parking Authority for the year ended December 31, 2021.

Financial Statements for Toronto Public Library for the year ended December 31, 2021.

Consolidated Financial Statements for Toronto Transit Commission for the year ended December 31, 2021.

Financial Statements for the Toronto Zoo for the year ended December 31, 2021.

Financial Statements for Yonge-Dundas Square for the year ended December 31, 2021.

The Audit Committee recommends that:

1. City Council receive the report (June 24, 2022) from the Auditor General on the status of the financial statement audits of the City of Toronto's Agencies and Corporations for the year ended December 31, 2021 for information.

The purpose of this report is to provide the Audit Committee and City Council with the status of financial statement audits of the City’s Agencies and Corporations for the year ended December 31, 2021.

 The Audit Committee recommends that:

1. City Council request the Chief, Toronto Paramedic Services and Chief, Toronto Fire Services, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service to regularly review the information on timeliness of transferred 9-1-1 calls to Toronto Paramedic Services and Toronto Fire Services, with the view to working together to meet the 9-1-1 emergency call service level standards. The entities should meet, when needed, to determine if any changes are needed to established protocols to ensure the safety of citizens.

2. City Council request the Chief, Toronto Paramedic Services and Chief, Toronto Fire Services, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service, in collaboration with Toronto Paramedic Services and Toronto Fire Services, to achieve live-time interconnectivity in communication on 9-1-1 calls and events amongst these entities, both currently, and in the implementation of the Next Generation 9-1-1 solution moving forward; this should include consideration of an interface of the Intergraph Computer Aided Dispatch system to allow for improved communication during 9-1-1 call transfers and events, and to specifically assist with communication where Toronto Police Service are no longer required by Toronto Paramedic Services and/or Toronto Fire Services as applicable, so as to avoid unnecessarily committing police resources.

3. City Council request the City Manager, in consultation with Toronto Police Services Board, Toronto Police Service, and City’s Legal Services, to include the following to inform its feasibility review of whether to move the 9-1-1 operations to a non-police City Service:

a. fulsome cost/benefit analysis that includes the potential impact to call answer and call response time of police, fire, and ambulance, and the other related functions of the call centre such as audio and data requests including for court proceedings, and maintenance of radio communications;

b. cost impact and feasibility with regards to staffing, given the current collective agreement of communications operators;

c. legislative feasibility given the current draft and forthcoming legislative requirements related to the delivery of policing and related services, in particular, the involvement of the police service in the Public Safety Answering Point dispatching function;

d. legal risk and who would be responsible for those 9-1-1 calls and/or alternate non-police response where police are not dispatched, and it results in a negative outcome;

e. governance model for Public Safety Answering Point with the view to enhance interoperability and coordination of emergency response services delivered; and

f. the goals and outcomes that are intended through a potential move of the 9-1-1 operations, and whether other strategies may be more effective, efficient, and economical to achieve those, such as offering another phone number for non-police response such as 2-1-1, and/or working together with Toronto Police Services on other strategies, including but not limited to, updating the 9-1-1 communications operators manual, additional training, data and technological supports for communications operators and police officers, and increased public education and awareness.

4. City Council request the City Manager and request the Toronto Police Services Board to direct the Chief, Toronto Police Service, in collaboration with the City, to undertake public education campaigns (including targeted awareness programs) and ongoing public education initiatives to improve public awareness and understanding on distinguishing between the various lines and the proper use of 9-1-1, the non-emergency line (416-808-2222), online police reporting, and other non-police alternative resources, including promotion of 2-1-1 (assistance in connecting people with community and social service resources) and 3-1-1 and City Council request that an  assessment  be made to evaluate the effectiveness of these campaigns and initiatives on call behaviours; such campaign and/or initiatives should:

a. include strategies to increase public awareness on what to do when the caller dials 9-1-1, including the specific information that needs to be provided to the call taker in order to shorten police response time, how to prevent pocket dials, and what to do when an individual dials 9-1-1 by mistake;

b. be multi-lingual; and

c. be refreshed and refocused periodically to address the 9-1-1 call analysis results to reduce unnecessary or avoidable non-emergency related calls to 9-1-1.

5. City Council request the City Manager and request the Toronto Police Services Board to direct the Chief, Toronto Police Service, in collaboration with the City, to consider a shorter and easier to remember number (if possible three digits) for Toronto Police Service’s dedicated non-emergency line.

6.  City Council direct the Deputy City Manager, Community and Social Services to play both a leading and coordinating role for City divisions in implementing the recommendations directed at the City, and that they engage with the Toronto Police Service to collaborate on recommendations whose implementation will be led by the Toronto Police Service, where the Auditor General indicated such collaboration would be necessary.

7.  City Council direct the Deputy City Manager, Community and Social Services to report back on the City's progress at the beginning of the next term (approximately six months' time) and to provide regular updates following that to ensure that progress on the recommendations directed at the City is being made.

The Auditor General and the Assistant Auditor General gave a presentation on Item AU13.5 headed "Toronto Police Service - Audit of 9-1-1 Public Safety Answering Point Operations - Better Support for Staff, Improved Information Management and Outcomes and Item AU13.6 headed "Review of Toronto Police Service - Opportunities to Support More Effective Responses to Calls for Service A Journey of Change: Improving Community Safety and Well-Being Outcome".

The Audit Committee considered Items AU13.5 and AU13.6 together.

Toronto Police Service (TPS) operates a Communications Centre (call centre) that acts as the Public Safety Answering Point (PSAP) for the City of Toronto. The communications operators at the call centre answer all emergency 9-1-1 calls across the City. Depending on the emergency response needed, the operators transfer the calls to fire services, ambulance, and/or other agencies, and dispatch police services when needed.

As the 9-1-1 PSAP for the City, the TPS call centre has a crucial role in ensuring the safety and security of the people of Toronto and their properties. It is the first point of contact for those who call for emergency assistance during times of distress. The timeliness of call answering is critical so that people receive the appropriate emergency response needed as soon as possible, as a person’s life or safety can often be at risk. The assessment made by communications operators determines the priority level, which impacts the timeliness of emergency response. Also, the decision on whether a call is dispatched or not for police services has a direct impact on the first level of front-line police resourcing required.

The Toronto Police Services Board (TPSB) requested the Auditor General to complete a risk assessment of TPS to develop a risk-based audit plan. The audit of the TPS's     9-1-1 operations was included in the Auditor General's 2021 Audit Plan.

In the February 2021 meetings, as part of City Council's decisions discussing the Community Crisis Support Service, City Council requested the Auditor General to prioritize her planned 2021 audit of the TPS's 9-1-1 operations. City Council also directed the City Manager for an overview of 9-1-1 operations and an analysis of the feasibility of moving 9-1-1 operations from TPS to a non-police City service. Further, that the City Manager's analysis be informed by any findings made by the Auditor General in the context of her audits of TPS.

We have completed the audit of 9-1-1 operations. The audit was to assess whether the TPS's 9-1-1 Communications Centre provides access to emergency services in an effective and timely manner and identifying potential areas of improvement to the efficiency and economy of operations. The audit made 26 recommendations to the TPSB in the following five key areas. Five of these recommendations were also made to the City Manager's Office and relevant City's Divisions.

1. Answering calls

2. Assigning call event types and priority levels

3. Dispatch and response times to emergency events

4. New technology, 9-1-1 levies, and other opportunities

5. Community education and awareness

This report contains five recommendations made to the City Manager's Office and applicable City divisions for consideration by City Council that are relevant to the City's management response. The list of these recommendations referenced between the review report and this report can be found in Attachment 2 (Appendix 2 with references). The full list of the Auditor General's recommendations made to both City Council and the Toronto Police Services Board can be found in Appendix 1 to this report.

The audit report was tabled at the June 22, 2022 Toronto Police Services Board meeting. The agenda for the meeting and the report are available at:

https://tpsb.ca/jdownloads-categories?task=download.send&id=733&catid=32&m=0

The Toronto Police Services Board will forward a transmittal on its actions to the Audit Committee for information.

At its meeting on June 22, 2022, the Toronto Police Services Board considered reports from the Auditor General. The following extracts have been provided from the draft Minutes of the public meeting of the Toronto Police Services Board:

1.  Auditor General – Presentation (Minute No.: P2022-0622-4.1.);

2.  Review of Toronto Police Service - Opportunities to Support More Effective Responses to Calls for Service A Journey of Change: Improving Community Safety and Well-Being Outcomes (Minute No.: P2022-0622-4.2.);

3.  Toronto Police Service - Audit of 9-1-1 Public Safety Answering Point Operations Better Support for Staff, Improved Information Management and Outcomes (Minute No.: P2022-0622-4.3.)

4.  Key Common Themes: Toronto Police Service – Audit of 9-1-1 Operations &Review of Opportunities to Support More Effective Responses to Calls for Service (Minute No.: P2022-0622-4.4.)

The Board requested that copies of the Minute, along with the reports from the City’s Auditor General, be forwarded to the Audit Committee for information, and for inclusion in the City’s Audit Committee meeting.

The Audit Committee recommends that:

1. City Council request the City Manager, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service to work in collaboration along with other agencies, to determine the feasibility of setting up adequately resourced, non-time restrictive, alternative responses for events where police are currently attending and where such attendance is likely not essential; and City Council request staff and the Toronto Police Services Board, in doing so to:

a. identify call for service event types, including but not limited to, the six event types discussed in our report that may be suitable for an alternative response;

b. develop reasonable criteria for each event type to assess the calls for service within those event types that may be suitable for an alternative response, including defining the level of acceptable risk and liability and how these factors will be managed;

c. consider alternative response pilot programs (e.g. community dispute mediation), with adequate evaluation mechanisms, to provide information and insights on the effectiveness of any established responses; this should include an assessment of the feasibility and cost-effectiveness of providing these alternative responses;

d. consider existing City or other community programs that could provide an alternative response and where needed, the feasibility and cost-effectiveness of changing the approach and resourcing to provide a timely and effective non-police response (e.g. Municipal Licensing and Standards Division for noisy small gatherings, Shelter, Support and Housing Administration Division street outreach teams);

e. consider a gradual and informed approach to establishing responses and assess the factors that would be needed for an effective and efficient full transition, including consultation with the public; and

f. develop and regularly update a plan that includes key milestones and targets so that progress can be tracked.

2. City Council request the City Manager, in consultation with the Toronto Police Services Board, to reiterate the City’s requests for funding commitments from the Government of Canada and the Ontario Government to support permanent housing options and to provide supports to address Toronto’s mental health and addictions crises, and in doing so, to communicate to the other governments that a “whole-of-government” funding approach in these areas will be critical to building the infrastructure needed to support effective alternative response delivery and ensure the best possible outcomes for the people of Toronto.

3. City Council request the Chief, Toronto Paramedic Services, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service to work in collaboration to review current protocols for when Priority Response Unit officers are requested for See Ambulance calls for service; such review should include:

a. determining if there are any opportunities to further refine the See Ambulance protocol so that the attendance of Priority Response Unit officers is based on an articulable risk to paramedic safety, specific to the unique circumstances of each call for service;

b. re-evaluating the criteria for when police are requested; this evaluation should specifically consider, but not be limited to, if the presence of alcohol, in absence of other risk factors, requires an automatic Priority Response Unit response;

c. ensuring that the rationale for requesting Priority Response Unit attendance and other important information is clearly documented in the Toronto Paramedic Services call for service details, both entities should also consider documenting which entity initiated the request for attendance from the other entity;

d. in situations where Toronto Police Service would have sent Priority Response Unit officers to calls for service irrespective of a request from Toronto Paramedic Services, Toronto Police Service should consider documenting this in its call for service system;

e. regular, joint evaluation of calls for service where Priority Response Unit attendance is requested, to assess the effectiveness and efficiency of the revised protocol and consider any changes as necessary; and

f. considering if additional training is needed for Toronto Police Service and Toronto Paramedic Services call takers to ensure requests for police attendance are well documented and comply with policies and procedures.

4. City Council request the City Manager, and request the Toronto Police Service's Board to direct the Chief, Toronto Police Service to work in collaboration along with other agencies to analyze low priority, non-emergency calls for service (e.g. Unwanted Guests, Check Address etc.) to identify instances where officers are repeatedly attending the same locations; to determine if an alternative resolution can be implemented; in developing solutions, Toronto Police Service should consider if a call for service volume can be reduced through implementing Recommendation 1 above.

5. City Council request the City Manager, to work in collaboration with the President and Chief Executive Officer, Toronto Community Housing Corporation and request the Toronto Police Services Board to direct the Chief, Toronto Police Service to determine if strategies can be implemented to reduce instances of Priority Response Unit officers repeatedly dispatched to the same locations within Toronto Community Housing Corporation properties.

6. City Council request the City Manager, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service to work in collaboration to:

a. conduct joint program assessments of the outcomes from current mental health call for service diversion pilots, including the Gerstein Crisis Centre call for service diversion pilot, and the City’s Toronto Community Crisis Service, to assess the effectiveness and outcomes of these programs; 

b. ensure mechanisms are in place so that both the City and Toronto Police Service have access to the necessary data, including Toronto Police Service call for service data (e.g. number of calls for service received, diverted) and relevant call for service details to complete effective evaluations of the current and any future pilots; and

c. ensure planning for future pilot programs are coordinated, involve both the City and Toronto Police Service, and consider the recommendations from Section A.1 of the report (June 24, 2022) from the Auditor General, to ensure they are achieving the desired outcomes in the most efficient and effective way.

7. City Council request the Chief, Toronto Paramedic Services and request the Toronto Police Services Board to direct the Chief, Toronto Police Service, in consultation with Toronto Paramedic Services and the Chief Executive Officers (or other appropriate executive liaisons) of Toronto hospitals to:

a. leverage technology and/or the use of data to identify the most appropriate hospital for an officer to transport an individual in custody, with the view of minimizing wait times and travelling the least possible distance; and

b. develop police-hospital liaison committees and transfer of care protocols with all hospitals where Toronto Police Service transports apprehended persons, to minimize wait times and develop protocols to create a workflow which will benefit both Toronto Police Service and the hospitals.

8. City Council request the City Manager, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service to work in collaboration to:

a. assess if current call for service diversion strategies to the City, through 3-1-1 Toronto, are working as intended, and if Toronto Police Service and City staff clearly understand the roles and responsibilities; such assessment to include evaluation of call volumes and outcomes at both Toronto Police Service’s Communications Centre and 3-1-1 Toronto for relevant call for service types; and

b. assess if there are opportunities to increase call for service diversion from Toronto Police Service to the City.

9. City Council request the City Manager, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service to work in collaboration to consider through an interface or other means, increasing the information shared between City divisions (e.g. Municipal Licensing and Standards Division, 3-1-1 Toronto, etc.) and Toronto Police Service on a per call for service basis (e.g. addresses where police respond to noisy parties) so that trends can be identified and the City can help address the root cause of issues that are not police matters and City Council request that, before undertaking any data sharing, Toronto Police Service and the City perform a legal review, which includes consideration of any relevant privacy considerations, specifically the requirements outlined in the Municipal Freedom of Information and Protection of Privacy Act.

10. City Council request the City Manager, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service to work in collaboration to leverage 2-1-1 Central data in conjunction with call for service data, at an aggregate level, to identify neighbourhoods where there are a high number of low priority calls for service, and where community resources may exist to help divert front-line police resources and City Council request that before undertaking any data sharing, Toronto Police Service and the City perform a legal review, which includes consideration of any relevant privacy considerations, specifically the requirements outlined in the Municipal Freedom of Information and Protection of Privacy Act.

11. City Council request the City Manager, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service to work in collaboration to consider implementing public awareness campaigns addressing the public’s perceptions on people experiencing mental health challenges and/or homelessness and what type of response (e.g. police or non-police response) would be most appropriate and such process should include mechanisms for campaign evaluation (e.g. key metrics that will be measured), a process for including community engagement in the planning process and determining the most appropriate target audience.

12.  City Council direct the Deputy City Manager, Community and Social Services to play both a leading and coordinating role for City divisions in implementing the recommendations directed at the City, and that they engage with the Toronto Police Service to collaborate on recommendations whose implementation will be led by the Toronto Police Service, where the Auditor General indicated such collaboration would be necessary.

13. City Council direct the Deputy City Manager, Community and Social Services to report back on the City's progress on Recommendation 3 above at the beginning of the next term (approximately six months' time) and to provide regular updates following that to ensure that progress on the recommendation directed at the City is being made.

The Auditor General and the Assistant Auditor General gave a presentation on Item AU13.5 headed "Toronto Police Service - Audit of 9-1-1 Public Safety Answering Point Operations - Better Support for Staff, Improved Information Management and Outcomes and Item AU13.6 headed "Review of Toronto Police Service - Opportunities to Support More Effective Responses to Calls for Service A Journey of Change: Improving Community Safety and Well-Being Outcome".

The Audit Committee considered Items AU13.5 and AU13.6 together.

Toronto Police Service (TPS) plays a key role in ensuring the safety and well-being of the people of Toronto through its delivery of policing services. As first responders, TPS officers are on the front lines and respond to a variety of situations. However, we found TPS has effectively become the default response in some situations, responding to some calls for service that are not police matters, due in part to the lack of available effective alternate responses at the times they are needed.

Furthermore, a lack of adequate social service supports for vulnerable individuals including people experiencing homelessness, mental health and substance use challenges, has resulted in a default police response to some calls for service. Supporting the complex needs of these individuals is not something that a police emergency response was intended to resolve and alternative community-based responses, if in place and available when needed, can help to provide the needed social supports for people.

Modernizing and enhancing the way data is captured and leveraged provides the opportunity for TPS to work with the City and stakeholders in an informed way to divert some non-emergency 9-1-1 calls, as well as some calls for service to alternative responses that may be able to provide better outcomes for vulnerable individuals.

In our view, based on the results, it is not a 'lift and shift' of calls for service and funding, but a strategy of gradual transition for alternative non-police responses where appropriate, with the shared goal to improve outcomes for the people of Toronto.

These are complex matters needing better information to support transition. Opportunities for alternative responses may grow over time as better information is captured and analyzed, and while alternative responses are piloted and evaluated for potential further roll-out. 

Once the pilots for alternative non-police responses have been established and evaluated, which will likely take several years, funding levels and sources should be re-assessed. Other factors impacting both TPS and the City should also be considered, including the population growth, the demand level to meet the needs of vulnerable individuals, strategic priorities and resourcing to achieve them, as well as other considerations such as the impact of mandated NG9-1-1 requirements.

This review also highlights that a whole-of-government and a whole-of-community commitment and approach is needed. Strategic investment by all levels of government in social service infrastructure and alternative strategies is necessary in order to create long-term value for the City, for individuals and the community. The need for funding supports from other levels of government for social infrastructure is also supported by our recent audits of the City’s shelters and affordable housing program.

Ensuring community safety and well-being will require active leadership and commitment from the City, and multi-sector collaboration and partnership in pursuing alternative responses that will allow TPS to focus on achieving its mandate and provide the best possible outcomes for the people of Toronto.

It will be important for TPS, the City, and other stakeholders to develop concrete community-wide plans that include the desired outcomes and a framework to capture data, and track, evaluate and report out publicly on the progress of pilot outcomes. This will help the City, TPS, and other stakeholders to make evidence-based decisions and ensure transparency and accountability as all stakeholders move forward together.

The following will be important to achieve the change needed:

·  identifying key and shared outcomes as part of strategic planning and collaboration and use evidence-based data to inform decisions

·  being transparent and accountable by tracking and reporting out publicly on progress against agreed plans and outcomes

·  being committed and building trust and support between stakeholders as they move through any barriers and difficulties towards common goals.

The recommendations for change are in three key areas.

1. Re-thinking Call for Service Response to Support More Efficient and Effective

    Outcomes

2. Improving and Further Leveraging Data and Technology

3. Increasing Integration and Information Sharing

The review contains 25 recommendations for change in 3 key areas and 11 of these are relevant to the City's management response. The recommendations provide key stakeholders with a starting point that will support them on their journey of long-term change as TPS works with the City and stakeholders to move forward together.

This report contains 11 recommendations made to the City Manager's Office and applicable City divisions for consideration by City Council that are relevant to the City's management response. The list of these recommendations referenced between the review report and this report can be found in Attachment 2 (Appendix 2 with references). The full list of the Auditor General's recommendations made to both City Council and the Toronto Police Services Board can be found in Appendix 1 to this report.

The public report was tabled at the June 22, 2022 TPSB meeting. The agenda for the meeting and the report are available at:

https://tpsb.ca/jdownloads-categories?task=download.send&id=733&catid=32&m=0

The Toronto Police Services Board will forward a transmittal on its actions to the Audit Committee for information.

At its meeting on June 22, 2022, the Toronto Police Services Board considered reports from the Auditor General. The following extracts have been provided from the draft Minutes of the public meeting of the Toronto Police Services Board:

1.  Auditor General – Presentation (Minute No.: P2022-0622-4.1.);

2.  Review of Toronto Police Service - Opportunities to Support More Effective Responses to Calls for Service A Journey of Change: Improving Community Safety and Well-Being Outcomes (Minute No.: P2022-0622-4.2.);

3.  Toronto Police Service - Audit of 9-1-1 Public Safety Answering Point Operations Better Support for Staff, Improved Information Management and Outcomes (Minute No.: P2022-0622-4.3.)

4.  Key Common Themes: Toronto Police Service – Audit of 9-1-1 Operations &Review of Opportunities to Support More Effective Responses to Calls for Service (Minute No.: P2022-0622-4.4.)

The Board requested that copies of the Minute, along with the reports from the City’s Auditor General, be forwarded to the Audit Committee for information, and for inclusion in the City’s Audit Committee meeting.

The Audit Committee recommends that:

1. City Council request the General Manager, Transportation Services to ensure the following for the upcoming contract:

a. the vendor is required to document streets patrolled for non-site travel time; and

b. the vendor is required to submit a daily log of activities to be performed.

2. City Council request the General Manager, Transportation Services to ensure that all areas of improvement identified through the complaints are incorporated into the upcoming contract.

3. City Council request the General Manager, Transportation Services to report back to the Audit Committee by the end of third quarter of 2023 on the outcome of the review by the Corporate Compliance Unit in Transportation Services on the initial Internal Audit recommendations.

The purpose of this report is to provide an update on a fraud and waste complaint received, the subsequent action taken on the allegations and that management continues to work on the matters raised.

In mid-2016, the City's Fraud and Waste Hotline (operated by the Auditor General's

Office) received a complaint alleging a utility contracting services vendor ("the Vendor") of overbilling and a lack of oversight by Division management for not taking action against the Vendor. The Vendor provides installation and maintenance services regarding traffic signs. The Auditor General’s Office conducted preliminary inquiries and determined that it was appropriate to refer the complaint to the Transportation Services Division ("the Division") for review and suggested leveraging the Internal Audit ("IA") Division to conduct an analysis to help address the allegations.

In 2017, the IA Division issued a report of their analysis and outlined four recommendations for the Division to consider. They noted input errors by the Vendor, and credits for those amounts were received by the Division but no intentional overbilling was found. Divisional management agreed to implement the IA Division's recommendations by Q3 of 2018. IA Division's recommendations are outlined below, and the full report is attached.

In December 2021, the Auditor General received another complaint that there were still concerns with the same vendor with additional allegations. The Auditor General’s Office conducted preliminary inquiries, referred the complaint to the Division to review and followed up on the status of the IA Division’s recommendations from 2017.

The Division reviewed the new allegations and concluded one of the allegations was substantiated. The Auditor General’s Office also met with the Division and were informed that some of the IA recommendations from 2017 were not implemented due to extenuating circumstances. The Division is continuing to work on the recommendations and future follow up may be required.

This report presents an overview of the complaints received, actions taken and current status of the past recommendations and potential new recommendations in advance of the contract for installation and maintenance of traffic signs being procured for January 1, 2023.

The Auditor General's Office is summarizing the information and has not audited the results presented. This report does not constitute an audit conducted in accordance with Generally Accepted Government Auditing Standards (GAGAS).

The Audit Committee submits the Item to City Council without recommendation.

This report is in response to a direction from the Audit Committee to the General Manager, Shelter, Support and Housing Administration and the City Solicitor to report back to the July 11, 2022 meeting of the Audit Committee on further progress of recovery of all charges that are not in accordance with the terms of the contract, such report to also include the terms and conditions of the agreements and how they work.

Shelter, Support and Housing Administration (SSHA) appreciates and welcomes the findings of the Auditor General (AG).  The City of Toronto implemented the most comprehensive response to the COVID-19 pandemic for people experiencing homelessness in Canada.  SSHA moved quickly in 2020 to open 48 new temporary shelter sites to provide additional space for physical distancing, avert potential outbreaks in shelters, save lives and minimize the spread of COVID-19 in shelters and the community.  SSHA is deeply proud of our frontline staff and community partners for their ongoing efforts to protect people experiencing homelessness in Toronto.

This unprecedented and significant expansion of the emergency shelter system required new approaches and rapid responses to emerging and urgent issues as they arose to ensure critical frontline operations were maintained.  Learning from those experiences will continue to inform SSHA's approach to ongoing continuous improvement in service delivery and oversight.  SSHA supports the recommendations from the AG and sees this review as an opportunity for ongoing continuous service improvement, as well as an opportunity to review and strengthen processes.

The Audit Committee recommends that:

1.  City Council request the City Manager, in co-ordination with the Chief Technology Officer, the Chief Information Security Officer, the Director, Office of Emergency Management and the Director, Internal Audit, to report to the Audit Committee in the third quarter of 2023 with a City-wide Risk Governance Model addressing risks related to business continuity, cyber major incident and technology disaster recovery.

2.  City Council request the Chief Technology Officer, in co-ordination with the Chief Information Security Officer and the Director, Office of Emergency Management to report to the Audit Committee in the third quarter of 2023 on the status of the Information Technology Disaster Recovery Plan from each City of Toronto division, agency and corporation; the status update should also be reported for City of Toronto's Corporate Technology Services Disaster Recovery Plan, including business continuity and cyber major incident.

3. City Council direct that Confidential Attachment 1 to the report (June 24, 2022) from the Chief Technology Officer remain confidential in its entirety, as it involves the security of the property of the City.

This report provides status update of IT Disaster Recovery Plan pursuant to a City Council decision under AU10.8 - Status of Audit Recommendations for the Technology Services Division at its meeting on November 9, 2021. At this meeting, City Council requested the City Manager to report to the Audit Committee in the second quarter of 2022 with information from each City of Toronto Division, Agency and Corporation on their Information Technology Disaster Recovery Plan should the City's systems, technology, communications, or backups be made unavailable. In that meeting, City Council also requested the Chief Technology Officer to report to the Q2 2022 Audit Committee with an update on the status of City of Toronto's Corporate Technology Services Disaster Recovery Plan, including implementation, testing and a full project plan for any outstanding work.

The City creates and manages large volumes of electronic information or data. The impact of data loss or corruption of data from hardware failure, human error, hacking, malware, or a natural disaster could be significant. In such a case, a Technology Disaster Recovery Plan is designed to assist an organization in executing recovery processes in response to a disaster to protect business IT infrastructure and promote recovery.

The Technology Services Division (TSD) has collaborated with multiple Divisions, Agencies and Corporations to gather inputs related to the status of their IT Disaster Recovery Plan should the City's systems, technology, communications, or backups be made unavailable.  This information is documented in 'Section 1: City-wide assessment of Information Technology Disaster Recovery Plans' of this report and analysis is provided in Confidential Attachment # 1 - Status Update of the IT Disaster Recovery Plan.  

'Section 2 - TSD Disaster Recovery Plan' of this report details the status of the Technology Services Division's Disaster Recovery Plan, including implementation, testing and a full project plan for outstanding work that will highlight the road map for the transition from current state to the future state, based on best practices that have been identified by the project team. The analysis and details of implementation plan are provided in Confidential Attachment # 1.

The Audit Committee recommends that:

1.  City Council receive the 2021 audited financial statements for the Community Centres in Attachments 1 to 9 to the report (June 24, 2022) from the Auditor General.

The purpose of this report is to provide the Audit Committee and City Council with the 2021 audited financial statements of Community Centres.

The 2021 audited financial statements for the 10 Community Centres are presented to Audit Committee after approval by their respective Boards of Management. At this time, the audits of nine community centres have been completed and one has not yet started. Depending on when the remaining audit is completed, the Independent Auditor's Report, accompanying financial statements and management control letter (if applicable) will be presented at a subsequent meeting of the Audit Committee.

For the nine completed Community Centres, each Community Centre’s Independent Auditor’s Report, accompanying financial statements, and internal control letter (where applicable) is attached to this report. 

The Audit Committee recommends that:

1. City Council receive the 2020 audited financial statements of the Ted Reeve Community Arena attached as Attachment 1 to the report (June 24, 2022) from the Auditor General.

The purpose of this report is to provide the Audit Committee and City Council with the 2020 audited financial statements of Arenas and a status update on the 2021 and prior audited financial statements of Arenas.

The 2021 audited financial statements for the eight City Arenas are presented to the Audit Committee after approval by their respective Boards or Committees of Management.

At the time of preparation of this report, there were no 2021 audited financial statements available for arenas. This is because the audits of eight entities had not yet started. Depending on when the audits are completed, the Independent Auditor's Reports, accompanying financial statements and management control letters (if applicable) will be presented at a subsequent meeting of the Audit Committee.

The 2020 audited financial statements for six arenas were previously presented at the June 2021 and February 2022 Audit Committee meetings. This report presents the Independent Auditor’s Report, accompanying financial statements, and management control letter for one additional City Arena. The audit of the 2020 audited financial statements of the other remaining one Arena has not yet started and the 2019 audited financial statements of that same Arena started but was not in progress at the time of preparation of this report.

The Audit Committee recommends that:

1.  City Council forward the report (June 24, 2022) from the Auditor General to the Budget Committee for consideration during the 2023 Budget process.

In recent years, the Auditor General has completed a number of comprehensive and complex audits and investigations that covered a broad range of programs and services across the City and its agencies and corporations.

The Auditor General's 2022 Work Plan included 20 in-progress projects and upcoming projects for 2022 and another 16 projects to be initiated in 2022 or 2023, contingent upon availability of audit resources and consideration of emerging risks.

To date, the Auditor General has completed ten projects in 2022. There are currently more than seven projects^[1], including recommendation follow-up of certain high priority recommendations and two information technology projects, as well as several investigations underway.

The purpose of this report is to:

1. provide an update on the status of the Auditor General's 2022 Work Plan

2. highlight staffing challenges impacting the Work Plan

3. request carryover of operating funding for key audit projects through the creation of a new discretionary reserve fund for the Auditor General's Office.

In the first half of 2022, the Auditor General's Office was impacted by unanticipated staff leaves, turnover, and vacancies which has led to staffing and capacity constraints. The lower than expected staff complement is expected to continue through the next several months. Consequently, certain projects in the 2022 Work Plan will likely need to be delayed or deferred.

The Board of Health recommends that:

1.  City Council authorize the Medical Officer of Health to award, execute and amend, on an ongoing basis, purchase of service contracts for the Ontario Seniors Dental Care Program with the Parkdale Queen West Community Health Centre, on such terms and conditions that are satisfactory to the Medical Officer of Health and in a form approved by the City Solicitor.

2.  City Council authorize the Medical Officer of Health to enter into capital funding agreements for the Ontario Seniors Dental Care Program with Scarborough Centre for Healthy Communities for the receipt and expenditure of funding on such terms and conditions that are satisfactory to the Medical Officer of Health and in a form approved by the City Solicitor.

The purpose of this report is to provide information on the purchase of service contracts awarded and executed by the Medical Officer of Health for 2022, according to the delegation of authority by City Council, and request City Council authority for the Medical Officer of Health to award, execute and amend purchase of services contracts and capital funding agreements with organizations to deliver dental health programming and services that contribute to the health and well-being of Torontonians.

The Civic Appointments Committee recommends that:

1. City Council appoint Anne Deck to the Heritage Toronto Board of Directors, at pleasure of Council, for a term of office ending on February 4, 2024.

2. City Council direct that the balance of Confidential Attachment 1 to the report (June 9, 2022) from the City Clerk remain confidential as it relates to personal matters about an identifiable individual being considered for appointment to the Heritage Toronto Board of Directors.

Candidate's biography:

Anne Deck

Anne Deck holds a JD from Western University, Faculty of Law, and an Honours Bachelor of Arts with High Distinction in Art History from the University of Toronto. Anne has over five years of experience working in a curatorial capacity for Canadian public art galleries located in Ontario, Prince Edward Island, Nova Scotia, and the Yukon and is currently completing her articles with the Ministry of the Attorney General, Legal Services Branch for the Ministry of Heritage, Sport, Tourism and Culture Industries, Ministry for Seniors and Accessibility and the Ministry of Francophone Affairs. Anne is fluently bilingual in English and French.

This report recommends the appointment of 1 public member to the Heritage Toronto Board of Directors.

The Economic and Community Development Committee recommends that:

1. City Council, in accordance with the City's Public Appointments Policy, appoint the following nominees to the Business Improvement Area Boards of Management set out below at the pleasure of Council, and for a term expiring at the end of the term of Council or as soon thereafter as successors are appointed:

            Fairbank Village:

            Kurt Konietzny

2. City Council remove the following directors from the Business Improvement Area Boards of Management set out below:

            Fairbank Village:

            Luisa Maria Cancelli

The purpose of this report is to make changes to the Fairbank Village Business Improvement Area Board of Management, in accordance with the requirements of City of Toronto Municipal Code Chapter 19, Business Improvement Areas. The Fairbank Village Business Improvement Area falls within two Community Council boundaries.

The Economic and Community Development Committee recommends that:  

Technical amendment

1. City Council add a provision to section 2.4 - Loading and unloading of Toronto Municipal Code Chapter 591, Noise, to reflect new provincial limits on the City's authority, as follows:

B. In accordance with section 115.1 of the City of Toronto Act, 2006, Subsection A does not apply to the delivery goods to the following, except as otherwise authorized by a regulation made under that section:

(1) Retail business establishments.

(2) Restaurants, including cafes and bars.

(3) Hotels and motels.

(4) Goods distribution facilities.

Vehicle noise:

2. City Council request the Government of Ontario to increase fines for violations of modified exhaust and excessive vehicle noise under the Highway Traffic Act, and that a violation result in demerit points.

3. City Council request the Executive Director, Municipal Licensing and Standards to inform licensed car repair facilities, through educational communications, that muffler cut-outs, straight exhausts, gutted mufflers, Hollywood mufflers, by-passes or similar devices are prohibited under the  Highway Traffic Act, and that all licensed establishments must comply with federal, provincial and local regulations as a condition of licensing.

4. City Council direct the Executive Director, Municipal Licensing and Standards to report back during the Noise Bylaw Review in 2023 regarding developments on motor vehicle noise (including complaint levels and locations, results of enforcement blitzes, and other actions noted in this report) as well as an assessment of additional options to support a reduction in motor vehicle noise, including setting a decibel limit for stationary motor vehicles (excluding emergency services).

5. City Council direct the Executive Director, Municipal Licensing and Standards to continue to monitor technology developments related to automated noise enforcement / noise radar, and to report back during the Noise Bylaw Review in 2023 on any developments.

6. City Council request the Executive Director, Municipal Licensing and Standards to initiate an automated enforcement pilot program (e.g., noise-activated cameras) as a potential tool to curbing noise pollution in Toronto by the third quarter of 2023.

7. City Council request additional support from Toronto Police Services Board to conduct more joint blitzes with Municipal Licensing and Standards to address excessive vehicle noise and illegally modified vehicles.

8. City Council request Toronto Police Services Board to explore equipping and training Toronto Police Traffic Services on sound level meters to support enforcement of excessive motor vehicle noise.

9. City Council request the Executive Director, Municipal Licensing and Standards to consult with Toronto Public Health to include the health impacts of noise as part of the 2023 review of the Noise By-law.

10. City Council direct the Executive Director, Municipal Licensing and Standards, as part of the 2023 Noise By-law Review report, to introduce a sound level limit for motor vehicles when their engines are idle in accordance with the Society of Automotive Engineers, and report on a plan for implementation of this new provision.

11. City Council direct the Executive Director, Municipal Licensing and Standards to report on noise from City vehicles and fleets, including waste collection services, as part of the 2023 Noise Bylaw Review.

12. City Council direct the Executive Director of Municipal Licensing and Standards to provide an exemption, for citizen safety, from Toronto Municipal Code, Chapter 591, Noise, 591-2.4. Loading and Unloading (Noise) for private commercial waste collection as part of this first phase of the noise Bylaw Review, by including “it shall be lawful to emit or cause or permit the emission of sound from government work”, in order to allow similar exemptions in Municipal Code, Chapter 591, Noise, 591-2.4. Loading and Unloading (Noise) for waste collection and Toronto Municipal Code, Chapter 591 Noise 3.1 Safety and government work.

Leaf blowers/small engine equipment:

13. City Council amend Toronto Municipal Code Chapter 591, Noise, section 2.6 – Power devices, as follows:

1. Amend sub-section A, to further restrict when power devices can be used by extending the prohibition from 7 a.m. to 8 a.m. on weekdays that are not statutory holidays; and

2. Amend sub-section B, which exempts golf courses and public parks, to exempt all City operations (including services contracted by the City).

14. City Council direct the Executive Director, Municipal Licensing and Standards to initiate public education efforts, for the summer of 2022, about the appropriate use of lawn equipment such as leaf blowers.

15. City Council direct the Executive Director, Municipal Licensing and Standards to report back during the Noise Bylaw Review in 2023 regarding options for setting decibel limits for power devices.

16. City Council direct the General Manager, Parks, Forestry and Recreation to develop a plan to phase-out the gas-powered equipment that is used by Parks, Forestry and Recreation, within a reasonable timeframe.

Timeline for Bylaw changes

17. City Council direct that the amendments to City of Toronto Municipal Code Chapter 591, Noise, described in recommendation 1 come into effect immediately and the amendments in Part 13 above come into effect September 1, 2022.

The Economic and Community Development Committee requested the Executive Director, Municipal Licensing and Standards to report directly to the July 19 and 20, 2022 City Council meeting on potential amendments to the by-law to further restrict on gas-powered leaf blowers to specific months or seasons and to specific days and hours.

Toronto Municipal Code, Chapter 591, Noise (the Noise Bylaw) provides standards for noise, and applies to all properties in Toronto. Chapter 591 regulates episodic types of noise, which generally relate to the day-to-day activities of residents and businesses, including temporary events and construction. It must balance the desires of all residents to enjoy their homes and environments, and in a City as large and vibrant as Toronto, certain levels of noise are reasonable and reflect life in a densely populated city.

This report responds to outstanding directives from Toronto City Council since amendments to the Noise Bylaw were adopted in 2019. These directives relate to the feasibility of restricting noise from two-stroke engine leaf blowers and similar equipment and strategies to reduce excessive vehicle noise in Toronto, including automated noise radar. The report also discusses ongoing operational improvements.

A full review of the Noise Bylaw is expected in 2023. The review will assess the amendments made in 2019, including the effectiveness of the current decibel limits for amplified sound, trends in complaints and resolutions, and opportunities to strengthen enforcement. This provides sufficient time for broad public consultation, and to review a consecutive number of months of complaint data. The review was delayed due to the redirection of bylaw enforcement services during the COVID-19 pandemic, which resulted in the suspension of responses to noise service requests in spring and summer 2020, and limitations imposed by the province on the City's authority to regulate noise during the pandemic. For example, limit(s) on the City's authority to regulate noise were in place from March 2020 to October 2021, meaning that 19 months of noise complaint data is limited.

This report sets out several recommendations related to outstanding directives. To respond to excessive vehicle noise, Municipal Licensing and Standards conducts joint enforcement blitzes with Toronto Police Traffic Services. Municipal Licensing and Standards is taking action to enhance upcoming enforcement blitzes and will focus on problem areas based on service requests and in-field data. Given public concerns with excessive vehicle noise, City staff recommend that Council requests the Government of Ontario increase the fine amounts for modified exhausts and unnecessary vehicle noise under Ontario's Highway Traffic Act, and assign demerit points to the offences. In addition, staff will be educating licensed car repair facilities of relevant prohibitions under the Highway Traffic Act related to vehicle modifications that contribute to excessive vehicle noise and will report back during the 2023 Noise Bylaw Review on progress of the above actions and an assessment of options to introduce a decibel limit for stationary motor vehicles.

To respond to Council's request to assess the feasibility of automated noise radar equipment, Municipal Licensing and Standards undertook research on the equipment as well as consulted with jurisdictions that are conducting pilots. Through this research, it was determined that the equipment cannot accurately discern between sources of noise and is not reliable enough to be used as evidence in enforcing the bylaw. Municipal Licensing and Standards will continue to monitor the evolution of the equipment, and will report back with any developments.

In response to various Council directives, City staff from Municipal Licensing and Standards , Parks, Forestry and Recreation, and Transportation Services assessed options to restrict noise from two-stroke leaf blowers and other small-engine equipment. This report addresses the issue from the perspective of noise concerns and proposes several actions to respond to feedback from the public. This report recommends further restricting the time prohibition for power device noise by one hour and initiating public education efforts on proper equipment use and encouraging uptake of electric devices. Staff do not recommend a ban on two-stroke small engine equipment from a noise perspective. Compared to other noise categories, such as amplified sound and construction, complaints from leaf blowers and other equipment remain low. Municipal Licensing and Standards will explore the feasibility of including decibel limits for power devices during the Noise Bylaw Review in 2023.

This report also includes a technical amendment to the “Loading and Unloading” section of the Noise Bylaw to include new provincial limitations to the City's authority to prohibit or regulate noise made in connection with deliveries to retail stores, restaurants, hotels/motels and distribution facilities.

Public feedback via email was open between March 30, 2022 and April 20, 2022 regarding small-engine equipment and concerns with excessive vehicle noise in Toronto. This report was developed in consultation with Parks, Forestry and Recreation, Transportation Services, Environment and Energy, and Toronto Police Service.

The Economic and Community Development Committee recommends that:

1. City Council amend Toronto Municipal Code Chapter 349, Animals as follows:

Feeding of Wildlife

A. Establish the following definitions:

i. FEED - Providing food to, or leaving food for consumption by, wildlife, but does not include:

a. keeping compost in accordance with City by-laws;

b. keeping food in a bird feeding device in compliance with this Chapter;

c. providing water to a domestic animal; or

d. growing fruits and vegetables in gardens.

ii. BIRD FEEDING DEVICE - Any instrument, tool, appliance or thing meant or intended to hold food for birds.

iii. SONGBIRD – A bird belonging to the oscine division in ornithology.

iv. WILDLIFE - An animal that belongs to a species that is wild by nature, but does not include                            

a. domestic animals; or

b. a feral or stray cat.

B. Add a new subsection 349-10.1 as follows:

No person shall feed or attempt to feed wildlife, or permit the feeding of wildlife on their property, except:

i. An officer, licensed trapper, authorized wildlife rehabilitator or employee of a licensed pest management operator or exterminator leaving food as bait to catch wildlife as part of their professional duties;

ii. A person feeding wildlife as part of a research program undertaken by a university, college, government research body or wildlife research institution;

iii. A person fishing in accordance with a valid provincial licence;

iv. A person participating in a cultural, religious or spiritual practice outdoors, provided the person cleans all food from the outdoor location at the conclusion of the practice; or

v. A person feeding songbirds as follows:

a. the food intended for the songbirds is placed in a bird feeding device that is sufficiently above grade so as to not attract or be accessible to wildlife;

b. the bird feeding device is located on private property, and the property owner or occupant has given permission for the installation and use of the bird feeding device;

c. any food spilled from the bird feeding device is removed in a timely manner such that it does not attract other wildlife; and 

d.the bird feeding device is kept in sanitary condition and in good working order.

Pet Rabbits and Guinea Pigs

C. Add a provision that no person shall keep more than four rabbits and/or guinea pigs, or a combination of both, in and about any dwelling unit within the city.

D. Add a provision that the limit on the number of rabbits and/or guinea pigs shall not apply to individual members of a rescue group who are keeping rabbits and/or guinea pigs for or on behalf of that rescue group.

E. Add a provision that any person keeping more than four rabbits and/or guinea pigs as of December 1, 2022 may continue to keep those rabbits and/or guinea pigs until they have died, except where a person was lawfully keeping more than 10 rabbits and/or guinea pigs as of December 1, 2022 that person may keep no more than 10 of those rabbits or guinea pigs, or a combination of both, until they have died.

Pigeons

F. Amend section 349-25 by:

i. Deleting the word "stray" from subsection A; and

G. Amend section 349-25 by adding a provision that a person shall keep no more than 30 pigeons on any property in the city between November 1 of one year to March 31 of the subsequent year, or no more than 50 pigeons from and including April 1 to and including October 31 in any year.

Outdoor Animal Shelter Standards

H. Amend section 349-7 to require a person having the custody or control of an animal kept outside for any continuous period exceeding thirty minutes to ensure the animal enclosure provided in accordance with that section complies with any applicable standards under the Provincial Animal Welfare Standards Act, 2019, or its regulations.

Dog Excrement

I. Amend section 349-18 so that an owner of a dog shall remove excrement left by the dog on the property of the owner within 24 hours, instead of immediately as required on other properties.

Seizure and Impounding of Cats; Animals at Large

J. Add a new section 349-6D as follows:

D. No owner of an animal other than a pigeon shall cause or permit the animal to be at large in the city.

Issuance of Notices, Violations and Orders 

K. Amend section 349-15B by substituting “may” for “shall” so that it now reads ”Where the Executive Director has reason to believe that a dog has engaged in a dangerous act against a person or domestic animal, an officer may:” to allow officer discretion in dangerous dog investigations.

L. Update Article X, Offences, Entry to Inspect, to clarify the ability of the City of Toronto to issue orders for compliance and take remedial action consistent with the authorities in the City of Toronto Act, 2006, and other by-laws, including clarity on the process to serve orders or other notices or documents, including service by registered mail and e-mail.

2.  City Council amend Toronto Municipal Code Chapter 441, Fees and Charges, Appendix C – Schedule 12, Municipal Licensing and Standards by adding the fees in the table below:

3. City Council amend Toronto Municipal Code Chapter 441, Fees and Charges, Appendix C – Schedule 12, Municipal Licensing and Standards by amending the fees in the below table:

4. City Council direct that the amendments in recommendation 1 come into force on the following dates:

a. The amendments in recommendations 1 C, D, and E respecting rabbits and guinea pigs take effect December 1, 2022;

b. The amendments in recommendation 1 F respecting pigeons take effect December 1, 2022;

c. The amendments in recommendations 1 A and B respecting feeding wildlife take effect April 1, 2023; 

d. All other amendments take effect immediately.

5. City Council direct the Executive Director, Municipal Licensing and Standards, to include, as part of the Municipal Licensing and Standards Division's 2023 operating budget submission, additional staff resources required arising from the recommendations in this report.

6. City Council direct the City Solicitor to prepare the necessary bill(s) required to give effect to Council's decision and to make any necessary minor substantive or stylistic refinements as may be identified by the City Solicitor.

7. City Council request the Executive Director, Municipal Licensing and Standards and the Chief Planner and Executive Director, City Planning to report back in the Third Quarter 2023 to the appropriate standing committee(s) on the following:

a. A review of possible amendments to Chapter 545, Licensing, to introduce a new pet establishment business licence class to regulate all businesses for the sale of, grooming, training, daycare or the overnight boarding of animals, but not including veterinarian practices, with this review to include:

i. A review of best practices that pet shops, kennels and other pet establishments must maintain to meet animal welfare standards;

ii. Standards to reduce nuisance issues that may arise with neighbouring properties; and

iii. Consultation with industry stakeholders, animal welfare experts, Business Improvement Areas, resident associations, pet owners, and the general public.

b. A review of the Zoning By-law regulations of kennels and pet services in relation to any proposed pet establishment or kennel business license.

8. City Council direct the Executive Director, Municipal Licensing and Standards, to report back on the feasibility of requiring mandatory microchipping of cats, with the City providing an affordable microchipping service, and a public awareness campaign promoting the City’s and other charities' microchipping services and spay/neuter services.

9. City Council direct the Executive Director, Municipal Licensing and Standards, create a positive list of pets people can keep and request staff to report back in the third quarter of 2023 with a list of companion animals that will be allowed within the City of Toronto.

Toronto Municipal Code Chapter 349, Animals, establishes rules and regulations for responsible pet ownership, pet licensing, prohibited animals, responses to domestic animal and wildlife issues, and the provision of shelter care in Toronto. Municipal Licensing and Standards' Toronto Animal Services is responsible for administering and enforcing Chapter 349.

Chapter 349 first came into effect in 1999 and has been amended several times since, including the introduction of the UrbanHensTO pilot, changes to the list of prohibited animals, and changes to Dangerous Dog regulations including the establishment of the Dangerous Dog Review Tribunal.

This report recommends amendments to update and modernize the By-law, to help Toronto Animal Services meet its mandate of ensuring public safety and the welfare of Toronto’s wildlife and domestic animal population. Toronto is considered a progressive leader in this area and it is important to continuously improve our approach as well as assess developments and best practices in animal and wildlife management in an urban setting.

The following amendments to Chapter 349, Animals, are proposed:

- Prohibiting the intentional feeding of wildlife to address concerns with animal welfare and reduce instances of human-wildlife conflicts,

- Limiting the number of guinea pigs and rabbits that are permitted in and about a dwelling unit to a combined maximum of four, to address animal welfare challenges that arise when a large number of these animals are kept as pets,

- Limiting the number of domestic pigeons kept to thirty on any property in the city, with allowances for an increase in the numbers of pigeons to fifty during breeding season (April – October),

- Increasing the length of time within which a person must remove dog excrement on their own property to “up to 24 hours” to provide a more realistic timeframe for the dog owners,

- Removing the authority to impound certain cats, to help reduce cat populations in City shelters,

- Clarifying that a person is not permitted to allow their pet to be at-large in the City, apart from cats and pigeons,

- Improving outdoor animal shelter requirements by requiring compliance with the Provincial Animal Welfare Services Act, 2019, 

- Technical amendments to improve operational and enforcement efforts.

There are also proposed amendments to Chapter 441, Fees and Charges, to amend existing fees and establish a new fee to allow Toronto Animal Services to charge fees for the impounding and protective care of domestic animals other than cats and dogs, and for prohibited animals.

Municipal Licensing and Standards consulted with key stakeholders about the current state of pet ownership in the city and to understand how Torontonians interact with urban wildlife, which helped inform the recommendations of this report. Staff will develop and undertake an education campaign to ensure that the public understands the new and existing regulations around animals, guidance for reducing human-wildlife conflict, and information about pet licensing requirements.

This report also provides a number of updates related to Toronto Animal Services and responds to outstanding Council directives, including an update on pet licensing, responses to directives to assess the feasibility of a permitted animal list, the feasibility of regulating dog kennels through licensing, and an update on the regulation of cosmetic surgeries for pets.

This report was prepared in consultation with Legal Services, Toronto Public Health, the Indigenous Affairs Office, City Planning, and Parks, Forestry and Recreation.

The Economic and Community Development Committee recommend that:

1. City Council direct the General Manager of Toronto Employment and Social Services, in consultation with the Executive Director of Social Development, Finance and Administration, to report back in the first quarter 2023 on the next phase of Social Assistance Renewal, including timelines, roles and budget related to the shift towards the Provincial benefits administration and program risk management, along with an update on the implementation of Centralized Intake in Toronto, including the centralization of Ontario Works phone applications.

In May 2021, Toronto Employment and Social Services reported to Council with details of Ontario's plan for Social Assistance Renewal and Employment Service Transformation. There are three broad areas of change. First, Social Assistance Renewal will result in significant changes to provincial and municipal roles for social assistance — both Ontario Works and Ontario Disability Support Program. It is initially focused on realigning functions between the Province and municipalities to provide more efficient, person-centered supports for clients. Second, Employment Service Transformation will integrate Ontario Works and Ontario Disability Support Program employment services into Employment Ontario and establish Employment Service System Managers for each delivery region. Toronto Employment and Social Services will provide a report back to Council on Employment Service Transformation in July 2022. Finally, Human Services Integration is the Province's long-term vision which is intended to ensure all low-income residents (not just those in receipt of social assistance) can access caseworker support and a range of local human services. There are no current timelines for this phase of change and Toronto Employment and Social Services will report back to Council as more details are available.

This report addresses a critical and initial element of the Social Assistance Renewal plan — the Centralized Intake process — which aims to improve the client experience when applying or reapplying for Ontario Works by leveraging a new user-centric online application and automated, risk-based eligibility verification process. Centralized Intake is designed to simplify the Ontario Works application process for clients and reduce administration, allowing caseworkers more time to support clients while also automating and strengthening program integrity elements at the application stage. Centralized Intake was launched in a phased approach with prototype sites established across the Province beginning in Fall 2020. Following close collaboration with the Province and extensive planning with regard to design and implementation, Toronto's Centralized Intake prototype was launched February 28, 2022.

Prior to the introduction of Centralized Intake, the 3 channels to apply for Ontario Works (in-person, online and phone) were all managed by the City. The initial introduction of Centralized Intake saw the administration of online applications move from the City to the Province. Notably, eligibility requirements have not changed. The future vision of the Province is that both online and phone applications will be managed by the Province, while in-person will continue to be the responsibility of municipalities. The transition of the City's phone channel for Ontario Works applications will proceed at a future date, to be determined by the Fourth Quarter 2022.

This report focuses on the first phase of change (the centralization of the online channel to the Province). It provides an initial overview of the implementation of Centralized Intake and sets the foundation for future broader changes and impacts. There are no anticipated impacts on funding or staffing, and residents applying for assistance will continue to have the choice of which application channel best suits their needs. Many will benefit from a simpler, more user-friendly online system, with a streamlined first payment process. Staff will report back in the First Quarter 2023 with further updates on the implementation of Social Assistance Renewal, as well as the next phase of Centralized Intake, the transition of phone applications to the Province and the implications for the City's Application and Support Centre (which is housed within Social Development, Finance and Administration) and Human Services Integration initiative.

The Economic and Community Development Committee recommend that:

1. City Council receive the report (May 12, 2022) from the General Manager, Children's Services for information.

This report provides an information update to City Council on the status of the Canada-Wide Early Learning and Child Care Plan and the agreement signed by the Province of Ontario and the Government of Canada. It also summarizes the key elements of the Ontario-Federal agreement including its phased approach to meeting objectives over five years, eligibility criteria to participate in the new system, and the flow of funding and implementation timelines.

The Economic and Community Development Committee recommends that: