THE CITY OF TORONTO

Clerk's Department

Minutes of the Strategic Policies and Priorities Committee

Meeting No. 14

Thursday, September 24, 1998

The Strategic Policies and Priorities Committee met on Thursday, September 24, 1998, in Committee Room A, 2nd Floor, Metro Hall, Toronto, commencing at 9:30 a.m.

Members Present:

Mayor Lastman, Chair

Councillor Ashton

Councillor Berardinetti

Councillor Berger

Councillor Disero

Councillor Fotinos

Councillor Jakobek

Councillor Korwin-Kuczynski

Councillor O'Brien

Councillor Ootes

Councillor Pantalone

Councillor Rae

Councillor Saundercook

Regrets:

Councillor Brown

Councillor Prue

Also Present:

Councillor Holyday

Councillor Jones

Councillor Kinahan

Councillor Shiner

Confirmation of Minutes

On motion by Councillor Rae, the Minutes of the meeting of the Strategic Policies and Priorities Committee held on July 29, 1998, were confirmed.

272. Fleet Management - Administrative Structures, Policies and Accountability Standards

The Strategic Policies and Priorities Committee had before it a report (September 4, 1998) from the Chief Administrative Officer forwarding a report clarifying the existing and planned administrative structures, operating policies, and standards of accountability in relation to the acquisition and management of fleet within the City, and recommending that the foregoing report be received for information.

On motion by Councillor Jakobek, the Strategic Policies and Priorities Committee received the report (September 4, 1998) from the Chief Administrative Officer, and requested the Chief Administrative Officer to submit to the Corporate Services Committee and Budget Committee, the KPMG Phases 1 and 2 consultants report, and also report on how the proposed administrative structure and budget management systems promote accountability, budget control, and standards of usage.

(Report No. 18, Clause 29 (d))

(Letter to Chief Administrative Officer - September 28, 1998)

273. The 2008 Toronto Olympic Bid - October Update Report

The Strategic Policies and Priorities Committee had before it a report (September 2, 1998) from the Commissioner of Economic Development, Culture and Tourism forwarding a report:

(1) to update Council on Toronto's bid to host the 2008 Olympics;

(2) to begin to respond to the various Council motions of March and July, 1998 when the Olympic bid was previously considered by Council; and

recommending that the report be received for information.

The Strategic Policies and Priorities Committee also had before it a communication (September 24, 1998) from Michael Shapcott, obo Bread Not Circuses Coalition.

On motion by Councillor Ashton, the Strategic Policies and Priorities Committee submitted, for the information of Council, the report (September 2, 1998) from the Commissioner of Economic Development, Culture and Tourism and reported having received same.

(Report No. 18, Clause 3)

274. Development of the Municipal Grants Policy

The Strategic Policies and Priorities Committee had before it a transmittal letter (July 27, 1998) from the City Clerk forwarding the following action of the Municipal Grants Review Committee, and recommending to the Strategic Policies and Priorities Committee and Council:

(1) the adoption of the report (July 20, 1998) from the Commissioner of Community and Neighbourhood Services, which recommends that:

(i) the direction being taken in the development of a Municipal Grants Policy outlined in this report be endorsed;

(ii) the workplan outlined in Appendix "D" be approved, with specific reference to when the Municipal Grants Review Committee will hear deputations regarding the Municipal Grants Policy;

(iii) this report be forwarded to the City Task Forces addressing Seniors, Access and Equity, Community Safety, Children and Youth, and Homelessness for comment; and

(iv) the appropriate City officials be authorized and directed to take the necessary action to give effect thereto;

(2) that consultation on the Municipal Grants Policy be as follows:

(a) through local Councillors, including initiatives such as questionaries; and

(b) through solicited written submissions and meetings with stakeholders identified by staff and Councillors; and

(3) that deputations on the Municipal Grants Policy be heard only at the Municipal Grants Review Committee; and that the necessary Bill be introduced at Council to give effect thereto, if necessary.

On motion by Councillor Fotinos, the Strategic Policies and Priorities Committee recommended to Council the adoption of the recommendations of the Municipal Grants Review Committee embodied in the transmittal letter (July 27, 1998) from the City Clerk.

(Report No. 18, Clause 4)

275. Motion - Proposed Amendment to Procedural By-law Governing the Proceedings of Council

The Strategic Policies and Priorities Committee had before it a transmittal letter (August 6, 1998) from the City Clerk referring a motion by Councillor Nunziata from the July 29, 30 and 31, 1998, Council meeting for consideration by the Strategic Policies and Priorities Committee, which recommended that the Procedural By-law governing the proceedings of Council be amended to read as follows:

"Unless otherwise decided by Council, regular meetings of the Council shall begin at 9:30 a.m. on every fourth Tuesday, unless such a day shall be a public or civic holiday, in which case the Council shall meet at 9:30 a.m. on the Wednesday of the same week".

On motion by Councillor Fotinos, the Strategic Policies and Priorities Committee referred the transmittal letter (August 6, 1998) from the City Clerk to the City Clerk for report.

(Report 18, Clause 29(b))

(Letter to City Clerk - September 28, 1998)

276. Audit Division Restructuring and Staff Redeployment - Update

The Strategic Policies and Priorities Committee also had before it a communication (September 15, 1998) from Anne Dubas, President, Local 79, Canadian Union of Public Employees.

On motion by Councillor Jakobek, the Strategic Policies and Priorities Committee:

(1) submitted, for the information of Council, the recommendation of the Audit Committee embodied in the transmittal letter (September 14, 1998) from the City Clerk and reported having received same; and

(2) requested the City Auditor to report further to its next meeting on October 20, 1998, in the event that the two remaining staff requiring redeployment have not been accommodated.

(Report No. 18, Clause 5)

(Letter to City Auditor - September 28, 1998)

277. 1997 Over-expenditure - Information Services Division - Former City of Toronto

(1) in view of the budget implications, the Commissioner of Corporate Services report the 1997 over-expenditures in the Information Technology Services Division (ITSD) of the former City of Toronto and the action taken to date, to the Budget Committee, for information;

(2) the Executive Director, Information Technology perform a review of the agreement with the outside provider of data processing services at the former City of Toronto, to confirm the nature of services provided, the cost of all charges and the budget implications on the division's 1998 and future budgets;

(3) the 1998 budget of the Information Technology Division be monitored to determine the potential impact of unbudgeted commitments on the division, and appropriate action taken; and

(4) the Chief Financial Officer and Treasurer finalize the necessary budget control processes, including the provision of effective management reports, to assist departments in monitoring expenditures against budget.

On motion by Councillor Fotinos, the Strategic Policies and Priorities Committee recommended to Council the adoption of the recommendations of the Audit Committee embodied in the transmittal letter (September 14, 1998) from the City Clerk.

(Report No. 18, Clause 6)

278. Management Letter - Committee of Management for McCormick Playground Arena

The Strategic Policies and Priorities Committee had before it a transmittal letter (September 14, 1998) from the City Clerk forwarding the action of the Audit Committee and recommending to the Strategic Policies and Priorities Committee that the report (June 24, 1998) from the City Auditor, forwarding the 1997 management letter and corresponding response relating to the audit of the financial statements of the Committee of Management for McCormick Playground Arena be received and forwarded to Council for information.

The Strategic Policies and Priorities Committee received the Auditor's Report and 1997 Management Letter for the Committee of Management for McCormick Playground Arena.

(Report 18, Clause 29(c))

279. Management Letter - Metropolitan Toronto Pension Plan and Metropolitan Toronto Police Benefit Fund

The Strategic Policies and Priorities Committee had before it a transmittal letter (September 14, 1998) from the City Clerk forwarding the action of the Audit Committee and recommending to the Strategic Policies and Priorities Committee that the 1997 management letter attached to the report (August 5, 1998) from the City Auditor, and the corresponding response (August 31, 1998) from the Chief Financial Officer and Treasurer relating to the audit of the accounts of the Metropolitan Toronto Pension Plan and Metropolitan Toronto Police Benefit Fund of the Department of Finance, be received and forwarded to Council for information.

The Strategic Policies and Priorities Committee received the Auditor's Report and 1997 Management Letter for the Metropolitan Toronto Pension Plan and Metropolitan Toronto Police Benefit Fund.

(Report 18, Clause 29(d))

280. Management Letter - Metropolitan Toronto Homes for the Aged Division - Year Ended December 31, 1997

The Strategic Policies and Priorities Committee had before it a transmittal letter (September 14, 1998) from the City Clerk forwarding the action of the Audit Committee and recommending to the Strategic Policies and Priorities Committee that the report (August 31, 1998) from the City Auditor, forwarding the 1997 management letter relating to the Metropolitan Toronto Homes for the Aged Division and the response (August 26, 1998) from the Commissioner of Community and Neighbourhood Services, be received and forwarded to Council for information.

The Strategic Policies and Priorities Committee received the Auditor's Report and 1997 Management Letter for the Metropolitan Toronto Homes for the Aged Division.

(Report 18, Clause 29(e))

281. Management Letter - Metropolitan Toronto Housing Company Limited - Year Ended December 31, 1997

The Strategic Policies and Priorities Committee had before it a transmittal letter (September 14, 1998) from the City Clerk forwarding the action of the Audit Committee and recommending to the Strategic Policies and Priorities Committee that the management letter of the Metropolitan Toronto Housing Company Limited dated May 15, 1998, for the year ended December 31, 1998, attached to the report (August 27, 1998) from the City Auditor and the response from the Board of Directors set out in the transmittal letter dated August 4, 1998 from the Corporate Secretary, be received and forwarded to Council for information.

The Strategic Policies and Priorities Committee received the Auditor's Report and 1997 Management Letter for the Metropolitan Toronto Housing Company Limited.

(Report 18, Clause 29(f))

282. Management Letter - Exhibition Place

The Strategic Policies and Priorities Committee had before it a transmittal letter (September 14, 1998) from the City Clerk forwarding the action of the Audit Committee and recommending to the Strategic Policies and Priorities Committee that the management letter dated March 13, 1998 relating to Exhibition Place for the year ended December 31, 1997, attached to the report (July 28, 1998) from the City Auditor, and the response (July 13, 1998) from Mr. Harris Hunter, Director of Finance and Ms. Dianne Young, Interim General Manager, Exhibition Place, be received and forwarded to Council for information.

The Strategic Policies and Priorities Committee received the Auditor's Report and 1997 Management Letter for Exhibition Place.

(Report 18, Clause 29(g))

283. Management Letter - Audit Of The Accounts Of The Former City Of York

The Strategic Policies and Priorities Committee had before it a transmittal letter (September 14, 1998) from the City Clerk forwarding the action of the Audit Committee and recommending to the Strategic Policies and Priorities Committee that the communication (June 24, 1998) from KPMG Chartered Accountants forwarding the 1997 management letter relating to the audit of the financial statements of the former City of York be received and forwarded to Council for information.

The Strategic Policies and Priorities Committee received the Auditor's Report and 1997 Management Letter for the former City of York.

(Report 18, Clause 29(h))

Councillor Ootes assumed the Chair.

284. Financial Statements of the Kennedy Road Business Improvement Plan

The Strategic Policies and Priorities Committee had before it a transmittal letter (September 14, 1998) from the City Clerk forwarding the action of the Audit Committee and recommending to the Strategic Policies and Priorities Committee that the 1997 financial statements of the Kennedy Road Business Improvement Plan attached to the report (July 17, 1998) from the Chief Financial Officer and Treasurer be received and forwarded to Council for information.

Mayor Lastman declared an interest in this matter and advised that the nature of his interest was that his son is the President of the Kennedy Road Business Improvement Area.

The Strategic Policies and Priorities Committee received the 1997 Financial Statements of the Kennedy Road Business Improvement Plan.

(Report 18, Clause 29(i))

Mayor Lastman resumed the Chair.

285. Sheppard Subway Project Cost Overruns

The Strategic Policies and Priorities Committee had before it a transmittal letter (September 14, 1998) from the City Clerk forwarding the action of the Audit Committee and recommending to the Strategic Policies and Priorities Committee and City Council that the City Auditor be requested to review the management process relating to the Sheppard Subway and report in particular on the following:

(1) the agreement with Cadillac Fairview;

(2) the land acquisition process;

(3) the budgeting approval process; and

(4) the status of development levies.

The Strategic Policies and Priorities Committee reported having referred the transmittal letter (September 14, 1998) from the City Clerk forwarding the recommendations of the Audit Committee respecting the Sheppard Subway Project Cost Overruns to the Chief Financial Officer and Treasurer for report back to the Strategic Policies and Priorities Committee on options for capital financing.

(Report 18, Clause 29(j))

(Letter to Chief Financial Officer and Treasurer - September 28, 1998)

286. Use Of Long Term Consultants

(1) the report (August 31, 1998) from the City Auditor respecting the use of long term consultants, be adopted; and

(2) the firm of Gore & Storrie Limited be put on notice that the City of Toronto requires audited statements from them, of the summary of expenses covering the five year period from 1993 to 1997, within sixty days of approval of this action by Council; and

Advising that the City Auditor has been requested to report back to the Audit Committee on the possibility of a clause being inserted in new construction contracts that if audited financial statements are not submitted within a certain period of time, a financial penalty will be assessed.

On motion by Councillor Jakobek, the Strategic Policies and Priorities Committee recommended to Council the adoption of the recommendations of the Audit Committee contained in the transmittal letter (September 14, 1998) from the City Clerk.

(Report 18, Clause 31)

287. Governance of Toronto Hydro-Electric Commission

The Strategic Policies and Priorities Committee had before it a transmittal letter (September 14, 1998) from the City Clerk referring to the Strategic Policies and Priorities Committee the following decision of the Works and Utilities Committee's Special meeting held on September 14, 1998:

(1) referred the communication dated September 8, 1998, from Mr. Mark S. Anshan, Chair, Toronto Hydro-Electric Commission, and additional submissions respecting governance of the Toronto Hydro-Electric Commission; to the Strategic Policies and Priorities Committee at its next meeting, scheduled to be held on September 24, 1998; and

(2) requested the Chief Administrative Officer to submit a report to the Strategic Policies and Priorities Committee on the aforementioned communication and submissions and questions raised during the deputations; and

(3) directed that a copy of the aforementioned communication and submissions be forwarded to the Special Committee to Review the Final Report of the Toronto Transition Team for information.

The Strategic Policies and Priorities Committee also had before the following reports:

- (September 23, 1998) from the Chief Administrative Office

- (September 24, 1998) from the City Solicitor

On motion by Councillor Fotinos, the Strategic Policies and Priorities Committee recommended to Council that:

(1) the current citizen members of the Toronto Hydro-Electric Commission be thanked for their service and advised that their terms of office expire on October 31, 1998;

(2) City Council at its meeting on October 1 and 2, 1998, express its intention to appoint an Interim Board consisting of five more members of Council, and that the Striking Committee be requested to report to Council on October 28, 1998, recommending the five members; and

(3) the Chief Administrative Officer be requested to report appropriately on the Terms of Reference and mandate of the Interim Board until such time as a permanent Board is appointed, as early as possible in 1999.

On motion by Councillor Disero, the Strategic Policies and Priorities Committee recommended to Council that:

(4) effective the date of incorporation, the Board of Directors of the incorporated successor company to the Toronto Hydro-Electric Commission be comprised of 13 citizen members, including the Chair;

(5) the selection criteria be as described in the report (September 23, 1998) from the Chief Administrative Officer;

(6) Council appoint the Chair of the new corporation from among the citizen members;

(7) a reputable search consultant be engaged by the Chief Administrative Officer to provide Council with a list of candidates qualified to serve on the Board of the new corporation;

(8) the search process begin immediately to ensure that the Board is in place when the Articles of Incorporation are finalized, following the enactment of Bill 35 and the coming into force of the applicable portions of the legislation permitting incorporation, which may be in December 1998 or January 1999;

(9) the Toronto Hydro-Electric Commission be directed to revise its By-law 98-04-01 pertaining to reimbursement of the expenses of Commissioners to rescind the $80 per diem and direct that Commissioners' expenses be monitored and reported monthly to the Chief Financial Officer and Treasurer;

(10) the Chief Administrative Officer report further on the remuneration for the new Board of Directors of the successor corporation taking into consideration the report submitted by Jalynn H. Bennett & Associates dated August 12, 1998; and

(11) the appropriate officials be authorized to take the necessary action to give effect thereto.

On motion by Councillor Saundercook, the Strategic Policies and Priorities Committee recommended to Council that:

(12) an appropriate reception be held to thank the outgoing members for serving on the Commission.

On motion by Councillor Ashton, the Strategic Policies and Priorities Committee recommended to Council that:

(13) the members of Toronto Hydro-Electric Commission be selected by Council.

On motion by Councillor Pantalone, the Strategic Policies and Priorities Committee requested the current Board of Directors of the Toronto Hydro-Electric Commission to provide directly to City Council for its meeting on October 1 and 2, 1998, a written undertaking that:

(i) it will focus its activities on the amalgamation and integration of the six former hydro utilities; and

(ii) not sell any off its assets or make any other major business decisions without approval of City Council, until the new Board is approved by City Council

(Report 18, Clause 28)

(Letter to Toronto Hydro-Electric Commission; Chief Administrative Officer - September 25, 1998)

288. Metropolitan Toronto Coach Terminal Inc. - Financial Statements - Year Ended December 31, 1997

The Strategic Policies and Priorities Committee had before it a confidential transmittal letter (September 14, 1998) from the City Clerk forwarding the action of the Audit Committee and recommending to the Strategic Policies and Priorities Committee that the financial statements for the Metropolitan Toronto Terminal Inc. for the year ended December 31, 1997, attached to the transmittal letter (July 14, 1998) from the City Clerk, and the confidential report (July 20, 1998) from the General Secretary, Metropolitan Toronto Coach Terminal Inc., be received and forwarded to Council for information.

The Strategic Policies and Priorities Committee received the Auditor's Report and Financial Statements of the Metropolitan Toronto Coach Terminal Inc.

(Report 18, Clause 29(k))

289. Compliance Audit of Election Campaign Finances Under The Municipal Elections Act, 1996

The Strategic Policies and Priorities Committee had before it a confidential transmittal letter (September 14, 1998) from the City Clerk forwarding the action of the Audit Committee and recommending that the City Solicitor be requested to report In Camera, to the Strategic Policies and Priorities Committee on September 24, 1998, on the legal implications and options pertaining to the issues identified in the report (August 28, 1998) from the City Auditor.

The Strategic Policies and Priorities Committee also had before it a confidential report (September 15, 1998) from the City Solicitor reporting as requested by the Audit Committee, on the legal implications and options pertaining to the issues identified in the confidential report dated August 28, 1998, from the City Auditor to the Audit Committee entitled "Compliance Audit of Election Campaign Finances of a Candidate", and recommending receipt for information.

On motion by Councillor O'Brien, the Strategic Policies and Priorities recommended that the City Solicitor be requested to commence legal proceedings as set out in the confidential report (September 15, 1998) from the City Solicitor, and that the City Auditor be directed to lay the information to begin the legal proceedings.

(Report 18, Clause 1)

290. Collective Bargaining Advisory Panel

The Strategic Policies and Priorities Committee had before it a confidential report (August 27, 1998) from the Executive Director of Human Resources and the Chief Administrative Officer respecting the establishment of a Collective Bargaining Advisory panel and recommending that the report be received for information.

The Strategic Policies and Priorities amended the confidential report (August 27, 1998) from the Executive Director of Human Resources and Chief Administrative Officer, by adding Councillor Pantalone to the Advisory Panel and approved the report, as so amended.

(Report 18, Clause 29(i))

291. Progress Report on Amalgamation

The Strategic Policies and Priorities Committee had before it a report (September 11, 1998) from the Chief Administrative Officer forwarding a report to update Council on the status of amalgamation of the administration that has been underway since the creation of the new City of Toronto on January 1, 1998, and to respond to related requests of Council; and recommending that the Chief Administrative Officer report back within six months, but no later than March, 1999, to the Strategic Policies and Priorities Committee on the progress of amalgamation within the Corporation.

On motion by Councillor O'Brien, the Strategic Policies and Priorities Committee recommended to Council the adoption of the report (September 11, 1998) from the Chief Administrative Officer.

(Report No. 18, Clause 8)

292. Response to Bill 56, the "Greater Toronto Services Board Act"

The Strategic Policies and Priorities Committee had before it a report (September 16, 1998) from the Chief Administrative Officer outlining a Toronto City Council response to Bill 56, the "Greater Toronto Services Board Act", and recommending that:

(1) the provincial government be requested to make the following amendments to Bill 56:

(a) provide a definition of the term "strategy" in section 1 (1);

(b) amend section 22 to provide that:

(i) the Board be required to adopt strategies for municipalities within the GTA with respect to the provision and optimal use of infrastructure;

(ii) infrastructure strategies that the Board adopts respect the provisions of official plans as amended from time to time;

(iii) infrastructure planning undertaken by the Province has regard to the strategies of the Board;

(iv) the actions of the Board, its operators and agents be consistent with the Board's strategies; and

(v) municipalities be required to certify to the Board consistency of proposed new municipal infrastructure with Board strategies as part of the demonstration of need in the Environmental Assessment process;

(2) Council inform the Minister of Municipal Affairs and Housing that the City of Toronto opposes the method of levy apportionment based on weighted assessment, as set out in clause 28 (2) of Bill 56, and request the provincial government to work with City staff to identify alternative approaches to levy apportionment by the GTSB;

(3) Council request the provincial government to amend Bill 56 by removing the GTSB's power to directly access financial markets;

(4) Council request the provincial government to amend section 41 of Bill 56 in order to increase the City of Toronto's representation on GT Transit to 50 per cent;

(5) the foregoing report be forwarded to the Minister of Municipal Affairs and Housing, all Regional and Area Municipal Councils in the GTA, the Council of the Regional Municipality of Hamilton-Wentworth and Mr. Alan Tonks, the GTSB Moderator, as the City of Toronto's response to Bill 56; and

(6) the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.

The Strategic Policies and Priorities Committee recommended to Council the adoption of the report (September 16, 1998) from the Chief Administrative Officer.

(Report No. 18, Clause 9)

293. Invoices from Province for Social Housing

The Strategic Policies and Priorities Committee had before it a report (September 14, 1998) from the Chief Administrative Officer forwarding a report requesting authority to pay bills submitted to the City by the Province for the City's share of social housing costs, and outlining how the Province determined the amounts of the bills; and recommending that Council:

(1) authorize the City Treasurer to pay invoices for social housing totalling $106,117,704.99 for the period January to June 1998 by September 30, 1998, subject to successful resolution of the issue on interest lost due to the delay in the assessment roll; and

(2) request that staff report back on resources required by the City to undertake analysis of costs of social housing providers, in anticipation of devolution of management to the City.

The Strategic Policies and Priorities Committee recommended to Council the adoption of the report (September 14, 1998) from the Chief Administrative Officer.

(Report No. 18, Clause 10)

294. Children's Oncology Care of Ontario Inc. (Ronald McDonald House) - 356 Dundas Street West - Ward 24

The Strategic Policies and Priorities Committee had before it a report (September 18, 1998) from the Chief Financial Officer and Treasurer forwarding the foregoing report to obtain City Council's direction regarding the payment of property taxes for the property at 356 Dundas Street West, currently owned by Children's Oncology Care of Ontario Inc. which has, by virtue of special legislation, been exempt from property tax since January 20, 1986. Should Council not require payment of taxes foregone, then its authorization is sought for the release of the agreement registered on title against the property and the repeal of By-law No. 487-87 exempting the property from taxation for municipal and school purposes. Children's Oncology is in the process of selling the property and has a closing date of September 30, 1998, and recommending that:

(1) Council not require the payment of taxes that have been foregone in the 10-year period preceding the sale of 356 Dundas Street West as a result of the property tax exemption;

(2) Council authorize:

(a) the release of the exemption agreement dated May 16, 1986 from title; and

(b) the repeal of By-law No. 487-87 effective from the date of transfer of the property; and

(3) the appropriate civic officials be authorized to take whatever action is necessary to implement the foregoing, including the introduction of the necessary bill in Council to repeal By-law No. 487-87.

The Strategic Policies and Priorities Committee also had before it a communication (September 18, 1998) from Betsy Wright, President, Children's Oncology Care of Ontario Inc. requesting Council to release the First House from the Realty Tax Deferral Agreement (the "Agreement") and to permit them to invest all of the proceeds from the sale of the First House into the Second House for the purpose of paying for the Second House as well as making significant capital improvements to it.

The Strategic Policies and Priorities Committee recommended to Council the adoption of the report (September 18, 1998) from the Chief Financial Officer and Treasurer.

(Report No. 18, Clause 11)

295. Toronto Atmospheric Fund

The Strategic Policies and Priorities Committee had before it a transmittal letter (September 16, 1998) from the City Clerk forwarding the following recommendations from the Budget Committee respecting the Toronto Atmospheric Fund to the Strategic Policies and Priorities Committee and Council:

(1) That the joint report (August 28, 1998) from the Chief Administrative Officer and the Chief Financial Officer and Treasurer be received for information;

(2) That the Toronto Atmospheric Fund (TAF) review its granting policies and criteria with a view to:

(i) increasing support for city-initiated projects; and

(ii) ensuring that funding for communities are distributed across the new city;

(3) That TAF seek ways to reduce administrative costs so it is in line with other charitable foundations, organizations and endowment funds and report back to the Works and Utilities Committee;

(4) That TAF provide an annual report to Council on its spending, through the Works and Utilities Committee, containing a detailed summary of all expenditures of its members and administration;

(5) That TAF confirm its mandate to help the City meet its goal of reducing greenhouse gas emissions - the major cause of global warming;

(6) That a process be established so that TAF's expenditures for the coming year be subject to the same scrutiny as other departments, agencies, boards and commissions, for which the Corporation is responsible; and

(7) That TAF attempt to document and quantify the economic and health benefits (and/or costs) which flow from energy efficiency and other TAF initiatives and include these in further analyses reports to Council.

The Strategic Policies and Priorities Committee recommended to Council the adoption of the recommendations of the Budget Committee embodied in the transmittal letter (September 16, 1998) from the City Clerk.

(Report No. 18, Clause 12)

296. June 30, 1998, Corporate Operating Variance Report

The Strategic Policies and Priorities Committee had before it a transmittal letter (September 16, 1998) from the City Clerk forwarding the following recommendations of the Budget Committee to the Strategic Policies and Priorities Committee and Council:

(1) That further draws be made on a severely restricted basis from the Corporate Contingency account and that the Chief Financial Officer and Treasurer report to the Budget Committee on a periodic basis as to the status of the Corporate Contingency account and any draws thereon;

(2) That all program budgets, including the agencies, boards, and commissions, be requested to continue to maintain net expenditures within approved budgets;

(3) That agencies, boards and commissions which are projecting year-end over-expenditures as of the June 30, 1998 operating variance submission, develop appropriate strategies to ensure that they will remain on budget for year-end and report back to the Budget Committee for its meeting scheduled on October 13, 1998;

(4) That the tax deficiencies budget be decreased by $13.5 million to reflect the increased final 1998 assessment loss; and

(5) That a surplus management and corporate contingency reduction strategy be developed for phase-in implementation over several years.

On motion by Councillor Fotinos, the Strategic Policies and Priorities Committee recommended to Council the adoption of the recommendations embodied in the transmittal letter (September 16, 1998) from the City Clerk.

(Report No. 18, Clause 13)

297. Business Case Review of the Works Best Practices Program

(1) the adoption of the supplementary joint report (September 9, 1998) from the Chief Administrative Officer, the Chief Financial Officer and Treasurer and the Commissioner of Works and Emergency Services, wherein it recommended that:

(a) Toronto Council endorse continuance of the Works Best Practices Program, described herein, and with the additional control and reporting methodologies;

(b) funding in the amount of $1.908 million (in Water Supply Appropriation WS026) be approved from the Water Supply Capital Financing Reserve;

(c) subject to recommendation (b) above, authority be granted for an expenditure of $1.908 million after the Municipal Goods and Services Tax Rebate, to continue implementation of the Best Practices Program;

(d) the costs associated with staff downsizing and retraining, along with computer hardware and software replacement, be financed from the reduction in expenditures in the Works Best Practices Program. The annual cost avoidance will be identified separately in the Water Supply Capital Financing Stabilization Reserve and the Water Pollution Control Measures Reserve Fund; and

(e) the appropriate City officials be directed to take the necessary action to give effect thereto;

(2) that a benefits tracking program be developed and upon completion, the Commissioner of Works and Emergency Services report back to the Works and Utilities Committee as to the final form being accepted; and

(3) the Commissioner of Works and Emergency Services provide a report to the Works and Utilities Committee every six months on the benefits tracking program, and a copy be provided to the Budget Committee for information.

(Report No. 18, Clause 14)

298. Basement Flooding Problems in the York Community

The Strategic Policies and Priorities Committee had before it a transmittal letter (September 16, 1998) from the City Clerk forwarding recommendations of the Budget Committee to the Strategic Policies and Priorities Committee and Council recommending the adoption of the report (September 14, 1998) from the Commissioner of Works and Emergency Services, which recommended that:

(1) funding in the amount of $300,000 be approved for construction of detention facilities on Commodore and Bowie Avenues in the York Community, and

(2) funds be transferred from an approved 1998 Capital Project in the York Community plus the Water Reserve, as follows:-

$200,000.00 from Capital Project - Watermain Relining, and

$100,000.00 from Water Reserve Account No. 901-542.

The Strategic Policies and Priorities Committee recommended to Council the adoption of the recommendation of the Budget Committee embodied in the transmittal letter (September 16, 1998) from the City Clerk.

(Report No. 18, Clause 15)

299. The Implementation of a 100 percent Biosolids Beneficial Use Program at the Main Treatment Plant

The Strategic Policies and Priorities Committee had before it a transmittal letter (September 16, 1998) from the City Clerk forwarding the recommendations of the Budget Committee recommending to the Strategic Policies and Priorities Committee and Council the adoption of the report (September 14, 1998) from the Commissioner of Works and Emergency Services, which recommended that:

(1) authorization be granted to transfer an additional $300 thousand in funding within the 1998-2002 Approved Capital Works Program from the Biosolids Odour Control and the Biosolids Loading Facility within the Main Treatment Plant project to the Biosolids Beneficial Use Project, as set out in this report;

(2) subject to Recommendation (1), Council endorse the engagement of the firm of R. V. Anderson Associates Limited in the amount of $845 thousand net after Goods and Services Tax municipal rebate to assist in the preparation and evaluation of the EOIs and RFPs for the establishment of the beneficial biosolids re-use facilities and for the design-build construction of the biosolids loading facilities, odour control facilities and heat generation facilities; and

(3) subject to Recommendations (1) and (2), previous Council Authority limiting 1998 Expenditures to $450 thousand for the Biosolids technical consultants/project manager be rescinded.

(Report No. 18, Clause 16)

300. Sheppard Subway - Platform Edge Doors (PEDs) And Automatic Train Control (ATC)

The Strategic Policies and Priorities Committee had before it a transmittal letter (September 16, 1998) from the City Clerk forwarding the recommendations of the Budget Committee recommending to the Strategic Policies and Priorities Committee and Council that the report (July 16, 1998) from the General Secretary, Toronto Transit Commissioner be received.

The Strategic Policies and Priorities Committee received the transmittal letter (September 16, 1998) from the City Clerk.

(Report 18, Clause 29(m))

301. Toronto District Heating Corporation

The Strategic Policies and Priorities Committee had before it a report (September 18, 1998) from the Chief Administrative Officer forwarding the foregoing report advising that the Toronto District Heating Corporation (TDHC) is proposing that it become a corporation regulated by the Ontario Business Corporations Act (OBCA), and that TDHC advises that the Province is prepared to include amendments to Bill 35, the proposed Energy Competition Act. Also informing that a very narrow timeframe exists to take advantage of this opportunity and its potential benefits and the report recommends that Council endorse the TDHC approach to change its legal status and identifies minimum conditions under which the City is prepared to participate. Longer-term negotiations among the partners of the TDHC will be required to resolve outstanding issues and to effect any change to its legal status. Advising that assurance will be sought from the Province that it will not proclaim the relevant legislation concerning TDHC into law at the same time as the rest of Bill 35; and recommending that:

(1) Council endorse the request by the Toronto District Heating Corporation that Bill 35, the proposed Energy Competition Act, include provisions which permit the Toronto District Heating Corporation to be changed to one with share capital regulated under the Business Corporations Act (Ontario);

(2) the Minister of Energy, Science and Technology and the Minister of Municipal Affairs be requested to confirm in writing to the City that the amendments to Bill 35 respecting the Toronto District Heating Corporation will not be proclaimed into law until such time in the future that an agreement among the proposed shareholders has been reached and the Province has been so notified in writing by the City;

(3) the Commissioner of Finance and Treasurer, in conjunction with the City Solicitor and the Commissioner of Works and Emergency Services, be authorized to negotiate an agreement on behalf of the City of Toronto with representatives of the other proposed stakeholders of the proposed Corporation; namely the University of Toronto, the Province of Ontario and the hospital group;

(4) the Commissioner of Finance and Treasurer, in conjunction with the City Solicitor, identify the conditions that must be addressed to the satisfaction of the City including financial valuations, impact analyses, investor interest and other factors, and submit any final proposed agreement to Council for its approval; and

(5) the appropriate City officials be authorized to take the necessary action to give effect thereto.

The Strategic Policies and Priorities Committee also had before it the following reports:

(a) (September 17, 1998) from the Commissioner of Works and Emergency Services supporting the recommendations made in the Chief Administrative Officer's report by identifying some of the benefits of the proposal from the perspective of Works and Emergency Services, and recommending that the report (September 17, 1998) be received for information

(b) (September 15, 1998) from Mr. Juri Pill, President & CEO, Toronto District Heating Corporation requesting that Council endorse their request for proposed changes to Bill 35 governing the Toronto District Heating Corporation.

The Strategic Policies and Priorities Committee recommended to Council the adoption of the report (September 18, 1998) from the Chief Administrative Officer.

(Report No. 18, Clause 17)

302. Service Level Harmonization

The Strategic Policies and Priorities Committee had before it a report (September 18, 1998) from the Chief Administrative Officer reporting to update the Strategic Policies and Priorities Committee on the status and results of the analysis and review process for service level harmonization, and recommending that:

(1) the appropriate Standing Committee review service level variations including an option of harmonization with no budgetary impact; and

(2) the input from the Standing Committees be used by departments for preparation of the 1998 budget estimates.

The Strategic Policies and Priorities Committee recommended to Council the adoption of the report (September 18, 1998) from the Chief Administrative Officer.

(Report No. 18, Clause 18)

303. Installation of a Temporary Pedestrian Crossover - Walmer Road, 120 Metres North of Bloor Street West (Ward 23 - Midtown)

The Strategic Policies and Priorities Committee had before it a report (September 21, 1998) from the Commissioner of Works and Emergency Services forwarding a report to facilitate the safe crossing of Walmer Road by pedestrians during the construction of the Walmer Road entrance to the Spadina Subway Station and recommending that:

(1) a pedestrian crossover be installed on Walmer Road at a point 120 metres north of Bloor Street West with the costs associated with this work to be paid by the Toronto Transit Commission; and

(2) the appropriate City Officials be requested to take whatever action is necessary to give effect to the foregoing, including the introduction in Council of any Bills that are required.

The Strategic Policies and Priorities Committee recommended to Council the adoption of the report (September 21, 1998) from the Commissioner of Works and Emergency Services.

(Report No. 18, Clause 19)

304. Ontario Lottery Corporation - Advance Funding Program

The Strategic Policies and Priorities Committee had before it a report (September 23, 1998) from the City Clerk, Commissioner of Corporate Services and Commissioner of Community and Neighbourhood Services forwarding the report to update Council on negotiations with the Ontario Lottery Corporation regarding the City's administration of the Ontario Lottery Corporation Advance Funding Program; and given the province's position that the City may not recover the costs of administering the Advance Funding program from the Ontario Lottery Corporation, and recognizing the critical need to distribute these funds to local charities in the most economical and efficient manner possible, recommending that:

(1) the City of Toronto's Advance Funding Allocation be distributed using Option 1: a streamlined allocation process. The Council approved roster shall include: (1) the priority group of eligible organizations who previously ran roving charity casino events; and (2) the United Way and the Toronto Community Foundation who will undertake to allocate funds to the community.;

(2) a fee of $100 per application be charged by the City of Toronto to cover the costs of administering this process, similar to the application fee currently charged for lottery licensing and

(3) the appropriate City officials be authorized and directed to take the necessary steps to give effect thereto.

On motion by Councillor O'Brien, the Strategic Policies and Priorities Committee recommended to Council the adoption of the report (September 23, 1998) from the City Clerk, Commissioner of Corporate Services and Commissioner of Community and Neighbourhood Services.

(Report No. 18, Clause 20)

305. Transfer Plan for Child Care Services Adjustments to Child Care Support for Ontario Works

The Strategic Policies and Priorities Committee had before it a transmittal letter (September 23, 1998) from the City Clerk forwarding the recommendations of the Budget Committee recommending to the Strategic Policies and Priorities Committee, and Council, that the Mayor and City Council once again write to the Premier of Ontario requesting permission to use monies from its Social Services Reserve to fund child care spaces, in order to allow people who require child care services to return to work and to request the Province to cost share these 2,000 spaces with the City.

Councillor Ashton declared an interest in this matter and advised that the nature of his interest was that his daughter is registered in a non-profit child care centre in the City of Toronto.

Councillor Pantalone declared an interest in this matter and advised that the nature of his interest was that he has two children registered in a child care centre in the City of Toronto.

(Report 18, Clause 21)

306. Alterations and Additions to Ted Reeve Arena

The Strategic Policies and Priorities Committee had before it a transmittal letter (September 23, 1998) from the City Clerk forwarding the recommendations of the Budget Committee recommending to the Strategic Policies and Priorities Committee, and Council, the adoption of the report (September 22, 1998) from the Commissioner of Corporate Services, and that the Department absorb $65,000.00 within their budget and that if funds are not available, a further report be submitted to the Budget Committee.

On motion by Councillor O'Brien, the Strategic Policies and Priorities Committee submitted, without recommendation, the transmittal letter (September 23, 1998) from the City Clerk and requested the Commissioner of Economic Development, Culture and Tourism and the Commissioner of Corporate Services to submit the reports requested by the Budget Committee, directly to Council on October 1 and 2, 1998.

(Report 18, Clause 22)

307. Contract No. T-47-98 - F.G. Gardiner Expressway - Saulter Street to Leslie Street, Substructure Repairs

The Strategic Policies and Priorities Committee had before it a transmittal letter (September 23, 1998) from the City Clerk forwarding the recommendations of the Budget Committee recommending to the Strategic Policies and Priorities Committee, and Council, the adoption of the recommendations of the Urban Environment and Development Committee that the contract price for Contract No. T-47-98, F.G. Gardiner Expressway - Saulter Street to Leslie Street, Substructure Repairs be increased by $250,000.00 net to a total of $1,036.920.80 to accommodate the additional emergency work.

(Report 18, Clause 23)

308. Toronto Transit Commission - Confirmation of Additional Project Approval - Garage Subsurface Investigation and Remediation Program

(Report 18, Clause 24)

309. Toronto Transit Commission - Confirmation of Additional Project Approval - Roofing Rehabilitation Program

The Strategic Policies and Priorities Committee had before it a transmittal letter (September 23, 1998) from the City Clerk forwarding the recommendations of the Budget Committee recommending to the Strategic Policies and Priorities Committee, and Council, the adoption of the recommendations of the Urban Environment and Development Committee and advising that it has requested the Chief Financial Officer and Treasurer to submit a report during the 1999 - 2003 Capital Budget Review Process, providing details on the 1998 approved Toronto Transit Commission Budget along with any additional items that were subsequently approved by City Council.

On motion by Councillor O'Brien, the Strategic Policies and Priorities Committee recommended to Council the adoption of the recommendation of the Budget Committee embodied in the transmittal letter (September 23, 1998) from the City Clerk.

(Report 18, Clause 25)

310. Toronto Transit Commission - Procurement Authorization - Excavation and Paving 1998 Surface Track Program

(1) additional financing approval in the amount of $2,223 thousand for the TTC capital project No. 120 Subway Track be granted to cover the road reconstruction portion of the surface track work;

(2) an increase to the total 1998 net expenditure of the TTC capital program in the amount of $1,891 thousand be approved, representing the budgeted amount for this purpose in the 1997 capital budgets of Metro Transportation and the former City of Toronto; and

(3) the remaining $332 thousand, to complete the total TTC request for this project, be transferred from other 1998 projects with anticipated under expenditures, and that the TTC identify the projects to be reduced and report back to the Budget Committee.

The Strategic Policies and Priorities Committee also had before it a report (September 23, 1998) from the Chief Financial Officer and Treasurer outlining the responsibilities of a Municipal Council under Provincial Legislation as it pertains to the Annual Debt and Obligation Limit and recommending that:

(1) The report "Toronto Transit Commission -Excavation and Paving 1998 Surface Track Program", as considered by the Budget Committee at its meeting held on September 23, 1998, be amended by the following "that the approved 1998 Capital Program of the TTC be increased by $1.891 million and that it be financed through the issuance of debentures for a term not exceeding twenty years and that the amount is within the City's updated debt and financial obligation limit."

On motion by Councillor Jakobek, the Strategic Policies and Priorities Committee submitted to Council, without recommendation, the transmittal letter (September 23, 1998) from the City Clerk and requested the City Clerk to report directly to Council on October 1 and 2, 1998, on whether or not the action recommended in the report (September 23, 1998) from the Chief Financial Officer and Treasurer would be a reconsideration of Council's action respecting the Capital Budget.

(Report No. 18, Clause 26)

(Letter to City Clerk - September 28, 1998)

311. Extension of the Pavement and Construction of a Walkway at the South Side of Atlantic Avenue (Trinity-Niagara)

(1) supported the approval of the project to extend the pavement and construct a walkway at the south end of Atlantic Avenue; and

(2) recommended to the Strategic Policies and Priorities Committee and Council that:

(a) funds for this project be approved from the Transportation Department's existing Capital Budget; and

(b) if sufficient funds are not available within the Transportation Department's Capital Budget, that a further report be submitted to the Budget Committee.

On motion by Councillor Pantalone, the Strategic Policies and Priorities Committee recommended the adoption of the recommendations of the Budget Committee embodied in the transmittal letter (September 23, 1998) from the City Clerk and that such recommendation be considered with Clause 12 of Report No. 11 of the Toronto Community Council.

(Report 18, Clause 29(r))

(Letter to Council - September 28, 1998)

312. Millennium Task Force

The Strategic Policies and Priorities Committee had before it a transmittal letter (September 23, 1998) from the City Clerk forwarding the recommendations of the Budget Committee referring the recommendations of the Economic Development Committee to the Strategic Policies and Priorities Committee with the following amendment:

(1) that the words "the New Year's Levee on January 1, 2001 marking the arrival of the millennium" be deleted from recommendation (1) embodied in the report (September 9, 1998) from the Chair of the Millennium Task Force.

On motion by Councillor Korwin-Kuczynski, the Strategic Policies and Priorities Committee recommended that Recommendation (1) embodied in the report (September 21, 1998) from the Chair of the Millennium Task Force be amended by deleting therefrom the words "the New Year's Levee on January 1, 2001 marking the arrival of the millennium" and as so amended, the report be adopted.

(Report 18, Clause 27)

313. Developing Council's Strategic Plan

The Strategic Policies and Priorities Committee had before it a report (September 18, 1998) from the Chief Administrative Officer forwarding the foregoing report respecting a Strategic Plan which is Council's collective vision for the new City and describing Council's leadership role in the community and global priorities for the corporation. Strategic planning is a natural next-step in moving the City out of transition and into a period of city-building. The report seeks approval for the process to develop Council's Strategic Plan for the City of Toronto; and recommending that City Council:

(1) adopt the strategic planning process outlined in the foregoing report;

(2) establish a Council Reference Group to assist in guiding the strategic planning process, reporting to the Strategic Policies and Priorities Committee as required; and

(3) authorize the appropriate City Officials to take the necessary action to give effect thereto.

The Strategic Policies and Priorities Committee also had before it a communication (September 23, 1998) from Councillor Layton volunteering to work on the Council Reference Group mentioned in Recommendation 2 of the report (September 18, 1998) from the Chief Administrative Officer and advising that as Chair of the Council Strategy Committee for People Without Homes and Co-Chair of the Advisory Committee on Homeless and Socially Isolated Persons, he can facilitate coordination with these initiatives and the City's strategic plan.

The Chief Administrative Officer gave a brief presentation of his report to the Committee.

On motion by Councillor Ootes, the Strategic Policies and Priorities Committee recommended to Council the adoption of the report (September 18, 1998) from the Chief Administrative Officer.

On motion by Councillor Ootes, the Strategic Policies and Priorities Committee also requested the City Clerk to canvass all members of Council for their interest in being appointed to the Council Reference Group, and present a list of such members to the Striking Committee for consideration.

(Report No. 18, Clause 4)

(Letter to City Clerk, Chief Administrative Officer; c.c. Striking Committee - September 28, 1998)

The Committee recessed at 11:40 a.m. to meet In Camera.

Members Present:

Councillor Ootes, Acting Chair

Councillor Ashton

Councillor Berardinetti

Councillor Berger

Councillor Disero

Councillor Fotinos

Councillor Jakobek

Councillor Korwin-Kuczynski

Councillor O'Brien

Councillor Pantalone

Councillor Rae

Councillor Saundercook

Also Present: Councillor Holyday

Councillor Kinahan

Councillor Shiner

The Committee adjourned its In Camera session at 12:15 p.m. and reconvened in public session at 12:16 p.m.

Members Present were those as listed at the In Camera session above.

314. Separation Program for Executive, Management and Excluded Staff

The Strategic Policies and Priorities Committee had before it a confidential report (August 27, 1998) from the Executive Director of Human Resources and the Chief Administrative Officer outlining concerns respecting the Council approved Separation Program and proposing recommendations to respond to those concerns.

The Strategic Policies and Priorities considered the confidential report (August 27, 1998) from the Executive Director of Human Resources and Chief Administrative Officer and issued confidential instructions to officials.

(Report 18, Clause 29(p))

(Letter to Personnel Sub-Committee In Camera - September 28, 1998)

315. Year 2000 Issue Liabilities and Insurance

The Strategic Policies and Priorities Committee had before it a confidential report (September 7, 1998) from the City Solicitor forwarding a report on the possible liabilities of the City, Council and the executive management resulting from the Year 2000 issue and the insurance protection available to cover these liabilities.

The Strategic Policies and Priorities considered the confidential report (September 7, 1998) from the City Solicitor respecting the Year 2000 issues liabilities and insurance and issued confidential instructions to officials.

(Report 18, Clause 29(q))

316. Subsidy Agreement - Toronto Harbour Commissioners

The Strategic Policies and Priorities Committee had before it a confidential report (September 23, 1998) from the Commissioner of Urban Development and Planning Services reporting as requested by Council on the Subsidy Agreement between the Toronto Harbour Commissioners and the City.

The Strategic Policies and Priorities Committee considered the confidential report (September 23, 1998) from the Commissioner of Urban Planning and Development Services and issued confidential instructions to the appropriate officials.

(Report No. 18, Clause 29(n))

(Letter to City Solicitor - September 28, 1998)

317. Court Ordered Re-count in Scarborough Malvern - Ward 18

The Strategic Policies and Priorities Committee had before it a confidential communication (September 23, 1998) from Councillor Balkissoon respecting the Court ordered re-count in Scarborough Malvern (Ward 18).

The Strategic Policies and Priorities Committee considered the confidential communication (September 23, 1998) from Councillor Balkissoon and issued confidential instructions to the appropriate officials.

(Report No. 18, Clause 29)

(Letter to City Solicitor and City Clerk - September 28, 1998)

The Strategic Policies and Priorities Committee adjourned at 12:17 p.m.

Chair.