Delegation of Property Authorization
The Corporate Services Committee recommends the adoption of the following report (March 25,
1998 ) from the Commissioner of Corporate Services, subject to amending Recommendation No.
(2) by adding thereto the following words, "such report to include, at that time, recommendations
with respect to delegation of authorities to such Committee", so that Recommendation No. (2)
shall now read as follows:
"(2) authority for the approval of real estate/property matters be delegated in accordance with
the chart attached to this report as Appendix 1, subject, however, to the matters shown for
delegation to the Property Management Committee continuing to reside with Council until such
time as the report referred to in Recommendation No. (1) is submitted and considered; such
report to include, at that time, recommendations with respect to delegation of authorities to such
Committee;".
The Corporate Services Committee reports, for the information of Council, having requested the
Commissioner of Corporate Services to submit the job description and scope of responsibilities for the
new position of Executive Director for Facilities and Real Estate, to the Corporate Services Committee.
The Corporate Services Committee submits the following report (March 25, 1998 ) from the
Commissioner of Corporate Services:
Purpose:
To recommend the delegation of authority for the approval of various types of property and real estate
transactions.
Funding Sources, Financial Implications and Impact Statement:
Not applicable.
Recommendations:
It is recommended that:
(1) the Commissioner of Corporate Services be requested to report on the establishment of a staff
Property Management Committee comprised of senior staff from across the corporation, the functions
of which Committee are to include the coordination of property asset management and the approval of
certain real estate matters;
(2) authority for the approval of real estate/property matters be delegated in accordance with the chart
attached to this report as Appendix 1, subject, however, to the matters shown for delegation to the
Property Management Committee continuing to reside with Council until such time as the report
referred to in Recommendation No. (1) is submitted and considered;
(3) this authority supersedes and replaces any authorities, policies or procedures previously existing in
any of the seven "old" municipalities in relation to the subject matter hereof;
(4) leave be granted for the introduction of any Bills necessary to give effect to the foregoing; and
(5) the appropriate City officials be authorized and directed to give effect to the foregoing.
Council Reference/Background/History:
The Toronto Transition Team, in its report, "New City, New Opportunities", recommended that early in
1998, City Council should enact by-laws for delegating routine real estate transactions to staff. City
Council supported this approach in approving the recommendation of the Special Committee to request
a report on the delegation of authority for the approval of real estate transactions.
Discussion:
Various types of real estate/property matters, often routine in nature and/or insignificant in dollar
amount, end up unnecessarily lengthening Committee and Council agendas which, in turn, results in a
lengthier period of time to implement the desired/necessary transaction and/or documentation. Staff
have accordingly turned its mind to assessing which of the wide array of property matters (transactions
and documentation) should be delegated for approvals from Council, to staff, at a series of levels,
depending on the nature of the transaction and the dollar value in question.
The chart attached as Appendix 1 to this Report, reflects a proposed series of delegations of the
authority to approve various property transactions and/or documentation. The formulation of same has
been based on a combination of the actual practices of the former municipalities and staff's experience
in processing such transactions. The Real Estate Group, comprised of representatives of the former
municipalities, has reviewed these proposed delegations and supports the proposal, the current form of
which also reflects the Legal Department's input. The chart is arranged such that the type of property
transaction/documentation is listed down the left hand column, by category. The various possible
"levels" (e.g., Council, Commissioner, etc.) for the approval or proposed delegation are listed across the
top of the chart, forming columns. For each of the matters listed, there is a corresponding shaded area in
one of the columns. That shading reflects the recommended level for the delegation of the
approval-power for that type of matter.
Where documentation is required to implement the transaction(s) in question, same will be prepared in
accordance with terms and conditions satisfactory to the Commissioner of Corporate Services
(including, where appropriate, relevant indemnities, both environmental and otherwise, and standard
insurance provisions satisfactory to the Commissioner of Finance), and in a form satisfactory to the
Solicitor. Also, of course, where the matter involves the needs of, or property under the jurisdiction of,
an operating department, terms and conditions satisfactory to the Commissioner in question, will also
be included. Dollar figures on the chart represent only "base" amounts and are not intended to include
relevant taxes, operating costs, etc.
At the February 16, 1998, meeting of the Corporate Services Committee, certain Members requested
that when a proposed policy for the new City of Toronto is brought forward, staff should, where
possible, include information as to the policies/practices of the seven "old" municipalities. The chart
reflects, by a symbol assigned to each of the seven old municipalities, the level at which the authority
for approving the listed transactions had rested. (It should be noted, however, that due to the various
methods of how transactions were characterized by each of the seven municipalities and/or differences
in delegated "size" of transactions, the information as to those practices/policies may not be exhaustive,
but it at least certainly represents the core types of transactions.)
The matter of the approval of various types of encroachment agreements (on City property, including
roads, parks, etc., and by the City onto private property) will be the subject matter of a future report
once pre-existing policies and practices have been rationalized; and the jurisdiction of the Community
Councils in these matters is clarified.
The former City of Toronto's Board of Management exercised certain delegated property authorities.
The Municipality of Metropolitan Toronto had instituted a Land Management Committee comprised of
various Department Heads which Committee was mandated to, among other things co-ordinate the
planning of Metro's land requirements and the land disposition function, including the making of
recommendations as to the methods of disposition of Metro property. A formal body, such as a Property
Management Committee, has not yet been established for the new City. It is anticipated, however, that a
report on the formation of a similar type committee will be submitted shortly. Pending Council's
consideration of the establishment of a Property Management Committee, those items, the delegation
for which are reflected on the chart to go to such Committee, should continue to reside with Council.
The proposal also provides for the delegation of certain functions to an Executive Director, a position
which has not yet been filled. Accordingly, those delegations may only be exercised once that position
has, in fact, been filled.
If, in any particular circumstance, a transaction otherwise having been delegated to staff for approval is
of such special interest that same should receive the consideration of Committee and Council, a
determination may be made to return such item to the Committee/Council approval process for political
consideration.
Conclusions:
The proposed delegation of authority to approve various real estate matters as reflected in the appended
Chart will relieve Committee/Council Agendas of unnecessary items, expedite approval of the proposed
transactions and/or documentation, while, at the same time, ensuring that Council retains
decision-making control over significant property matters.
Contact Names:
Cathie Macdonald, Interim Lead, Real Estate Phone: 392-0449 Fax: 392-0029
Margaret Fischer, Legal Phone: 392-8054 Fax: 397-5624