TABLE OF CONTENTS

REPORTS OF THE STANDING COMMITTEES

AND OTHER COMMITTEES

As Considered by

The Council of the City of Toronto

on February 4, 5 and 6, 1998

STRATEGIC POLICIES AND PRIORITIES COMMITTEE

REPORT No. 1

1Strategic Restructuring Initiative

2Strategic Restructuring - Human Resources Principles andStrategic Directions

3Staffing of Organizational Leadership Positions

4Interim Salary Administration Practices and Policies -Non-Union Employees

5Other Items Considered by the Committee

City of Toronto

REPORT No. 1

OF THE STRATEGIC POLICIES AND PRIORITIES COMMITTEE

(from its meeting on January 19, 1998,

submitted by Mayor Mel Lastman , Chair)

As Considered by

The Council of the City of Toronto

on February 4, 5 and 6, 1998

1

Strategic Restructuring Initiative

(City Council on February 4, 5 and 6, 1998, adopted this Clause, without amendment.)

The Strategic Policies and Priorities Committee recommends that:

(1) the report dated January 19, 1998, from the Chief Administrative Officer be adopted;

(2) the Chief Administrative Officer be directed to immediately obtain proposals, at no cost, from qualified consulting companies to provide objective guidance and assistance in the amalgamation of the services and functions provided by the seven former municipalities;

(3) the Chief Administrative Officer develop Terms of Reference for the proposal call to include: the full cost of restructuring; the full cost of amalgamating seven cities into one; and the number of staff required by the new City, including recommendations on elimination of duplication, maximizing efficiency, and departmental budget estimates. Proposals also to include recommendations for efficiency and for staff retraining, and on the staffing that will be required by the Community Councils in Civic Centres;

(4) it be noted in the review that there could be more than four divisions in the Organization Structure;

(5) a Sub-Committee of the Strategic Policies and Priorities Committee, composed of three of its members suggested by the Mayor, be established to review the proposals received from the consultants when the proposals are being reviewed by staff;

(6) the Chief Administrative Officer report on all City-owned premises that will no longer be required; and

(7) the Chief Administrative Officer report back to the Strategic Policies and Priorities Committee on these proposals and all other things necessary, as efficiently and as quickly as possible.

The Strategic Policies and Priorities Committee submits the following report (January 19, 1998) from the Chief Administrative Officer:

Purpose:

This report will outline the current plan and approach to strategic restructuring of the Departments of the City as a result of amalgamation, downloading, and financial pressures. It will highlight critical initiatives and decisions which will need to be taken over the next few months. Several companion reports, on the January 19, 1998 Strategic Planning and Priorities Committee agenda, will be introduced as key elements of the Strategic Restructuring Initiative.

Funding Sources, Financial Implications and Impact Statement:

The outcome of the Strategic Restructuring Initiative will be to effectively and efficiently amalgamate the structure, services and staff of the former municipalities, in light of the financial and human resource constraints of the City, while ensuring no impact on customer service.

There will be financial implications arising from the companion elements to Strategic Restructuring, such as the funding of a workforce reduction strategy in the form of a separation program. Funding will also be required to contract with external consulting expertise. The Chief Financial Officer and Treasurer is preparing the estimates for all types of transition costs, which will be submitted to this Committee and be part of the 1998 Final Capital Budget. Restructuring costs will form part of those estimates.

Cost savings from amalgamation and restructuring will be quantified throughout the process.

Recommendation:

It is recommended that this report be adopted as the framework for corporate restructuring.

Discussion:

Since the introduction of the City of Toronto Act, 1997, staff of the former municipalities worked with the Toronto Transition Team on a review of all the services provided by both levels of government. The final report of the Toronto Transition Team was referred to the Special Committee to Review the Final Report of the Toronto Transition Team (the "Miller Committee") for review and recommendations back to Council within four months.

Coincident with the "Miller Committee" undertaking a comprehensive review, it is imperative that we begin to redesign the staff structure of the Corporation in order to effectively carry out the business and service of this municipality. Seven distinct and somewhat disparate organizations have to be brought together to function as a cohesive whole to maximize operational efficiency. The following pieces form the Strategic Restructuring framework:

(a) Organizational Structure;

(b) Organizational Leadership;

(c) Human Resources Principles ;

(d) Staffing Strategy for Management and Non-Union (Excluded) Positions;

(e) Separation Program for Executive, Management and Non-Union (Excluded) Staff; and

(f) Interim Salary Administration Practices and Policies.

Organizational Framework/Structure (Timeline - January/February):

An organizational structure sets out the approach and hierarchy of the business, providing the framework in which to organize staff, reporting relationships, accountabilities and service. It provides the necessary links and synergies between and across Departments and sets out the support arrangements for services, staff and the public. In any merger, no matter the scope or magnitude, the structure must be dynamic and flexible. It must allow for strategic changes as comprehensive organizational reviews are completed throughout a restructuring process.

The organizational structure will allow the staff of the former municipalities to be re-organized to meet the needs of the public. It is imperative that the development and approval of an initial organizational structure be the first element of Strategic Restructuring, recognizing that there will be modifications as we move through the process.

A report will be submitted to the "Miller Committee" in the near future to address the Organizational Structure component.

Organizational Leadership (Timeline - January to March):

In order to carry out Strategic Restructuring, the appropriate leadership must be in place. The staff who will guide the Corporation, under Council's direction, will be the catalyst for change. They will be responsible and accountable for reorganization, while ensuring that there is no disruption to public services.

The seven former organizations have been in a state of flux and anxiety over the past year leading to amalgamation. Productivity and staff morale have declined. Critical early on in the process of restructuring is the designation of the leaders in the Corporation.

A companion report has been submitted which lays out the process for staffing key leadership positions.

Stabilization and Integration (Timeline - February to April):

Once an introductory organizational structure has been set, and key leadership positions defined and staffed, the organization can stabilize its operations and employees and can commence the process of integration. Council has already started this process by approving a governance structure, while understanding that this structure may change as Council works through its own process.

Each of the Departments will be required to integrate in 1998, while undergoing a longer term review process throughout 1998 and 1999. The longer term process will include direction from Council on its strategic priorities, decisions from Council on service delivery, development of performance measures and identification of financial and human resource implications.

During short term integration, key assumptions will be made, which include:

(a) The introductory Organizational Structure will initially govern the design of the Corporation, while recognizing that modifications can be made to the structure as time and experience dictates.

(b) Changes will occur in the longer term as a result of Council's future decisions with respect to, for example, the support required for Community Councils and the level and appropriate delivery mechanisms for public services.

(c) Current service levels will be maintained and some services will continue to be delivered at the civic centres.

(d) One of the goals of the integration will be to achieve overall savings in the Corporation.

(e) Integration will be done using different approaches depending on the public's need for services and on Council's governance model. Some Departments will be integrated on a geographic basis (for example, fire services); some may be done on a program basis (for example, works operations); still others will be done on a governance basis (for example, financial services).

The results of the stabilization and integration process will be:

(a) a provisional organization that will deliver services;

(b) clear operational requirements for the Departments;

(c) a system to manage staff in the interim;

(d) a communication plan for the public and staff establishing clear lines and means of communicating decisions;

(e) time to allow Council to effectively organize itself and to make critical decisions on the future of the new City, including decisions on how agencies, boards and commissions will fit into the new structure;

(f) more comprehensive information on the financial and staffing impact of amalgamation; and

(g) an inventory of initiatives to be accomplished, solutions to be developed, and decisions to be made to achieve the longer term Strategic Restructuring Plan.

It is expected that this part of the process will take up to six months to unfold and will depend on how quickly decisions are made with respect to structure, staffing and funding. Budget pressures for 1998 could accelerate the timing and level of integration.

It is important to note that the services which were already amalgamated across the former Metro level will also be going through a series of changes. There will be pressure on these services as a result of downloading and a process will be set in place to assist those department to "re-stabilize" and re-organize.

Impact on Staffing:

There will be an immediate impact on staff and staffing levels in the Corporation as a result of the first phase of restructuring. It is not possible, this early in the existence of the new City, to determine the exact consequences of the amalgamation on the number and type of staff required to deliver the services. However, decisions that have already been made by Council, and those that will be made in the near future, will have consequences for individual staff.

To manage the impact through the process of stabilization and integration, several companion reports are on the agenda for the Committee's consideration:

(a) Human Resources Principles for the Strategic Restructuring;

(b) Staffing Strategy for Management and Non-Union (Excluded) Positions;

(c) Separation Program for Management and Non-Union (Excluded) Staff (In-Camera); and

(d) Interim Salary Administration Practices and Policies.

Staff will also be submitting a report to the Budget Committee respecting approaches to reduce the cost of salaries and wages as a result of 1998 budget pressures (for example, hiring freeze, gapping policy). The process of integrating Departments and services and the levels of staffing will be affected by Council's decisions in this regard.

Additional policies will be developed, as required, during this phase of restructuring.

Staff are also developing approaches for dealing with unionized staff who will be affected by amalgamation. Consultation with the union representatives, once organized, will form a part of this process where appropriate.

Change Management:

An integral component of Strategic Restructuring is a process for managing change. The organization will be undergoing unprecedented, large scale and fast paced changes. A new culture, a new set of attitudes, and a whole series of changed behaviours will need to be developed for the organization and its people. These will be based on the shared goals and values of both Council and staff.

The organization will also be challenged with developing new ways to:

(a) engage and support Council and staff in building the new City of Toronto;

(b) retain and/or re-train individual staff who will be important to the success of the new organization;

(c) interact with all stakeholders at the city level and within its communities; and

(d) consult and communicate with citizens, businesses and staff.

Staff will develop a change management philosophy and techniques to bring about a collaborative and cohesive organization of staff and services.

Future Outlook (April to December 1998):

Once the organization is stabilized and integrated in the short term, the longer term Strategic Restructuring process will begin. Full restructuring plans and timeframes will be targeted for Council consideration in the early fall. Some areas will be fast-tracked (for example, administrative and corporate services) to achieve efficiencies and savings in the shorter term.

This will involve:

(a) a strategic planning process, which will outline Council's future vision and priorities;

(b) eliminating duplication and rationalizing service levels to achieve Council's service priorities;

(c) public consultation on the vision, priorities and service levels;

(d) external expertise, guidance and advice on the best practices of both the public and private sectors in amalgamations or mergers;

(e) decisions on changes which need to be made to the organization -- that is, what services should the city be delivering, what Departments will be delivering which services, what services will continue to be delivered at the civic centres, how will links be established to ensure convenient and accessible services;

(f) efficiencies and strategic partnerships between the City Departments and the Agencies, Boards and Commissions;

(g) modifications in the level of staffing and financial resources as a result of structure, service level and service delivery decisions;

(h) harmonized policies, procedures, standards and by-laws;

(i) methods to measure the performance of the organization and staff in delivering services to the public; and

(j) a definitive plan for enhanced and continuous communication with the public and employees.

Conclusions:

This report has outlined a framework and approach to Strategic Restructuring which will guide effective, efficient amalgamation of services and staff. Early decisions by Council on approaches to deal with the impact of restructuring are required.

Full restructuring plans and timeframes will be targeted for Council's consideration in the early fall.

Contact Name and Telephone Number:

Brenda Glover, Commissioner of Human Resources, 397-9802

(City Council on February 4, 5 and 6, 1998, had before it, during consideration of the foregoing Clause, a communication (February 3, 1998) from the President, Local 79, Canadian Union of Public Employees, regarding the Strategic Restructuring Initiative, outlining a plan for restructuring all the departments in the new City of Toronto and requesting that the proposal to hire an outside consultant be rejected by Council.)

2

Strategic Restructuring - Human Resources Principles and

Strategic Directions

(City Council on February 4, 5 and 6, 1998, adopted this Clause, without amendment.)

The Strategic Policies and Priorities Committee recommends the adoption of the Human Resources Principles and Strategic Directions outlined in the joint report dated January 19, 1998, from the Commissioner of Human Resources and the Chief Administrative Officer, subject to adding thereto the following:

"XII. We will establish restructuring and downsizing criteria that takes into consideration Employment Equity programs and objectives.

XIII. During restructuring initiatives, we will implement re-training and re-skilling strategies and programs.

XIV. We will ensure that an appropriate Human Rights complaint process is in place, which includes relevant awareness programs."

The Strategic Policies and Priorities Committee submits the following joint report (January19, 1998) from the Commissioner of Human Resources and the Chief Administrative Officer:

Purpose:

This report outlines Human Resources Principles and Strategic Directions to be used during the Strategic Restructuring Initiative. It is a companion report to the Strategic Restructuring process.

Funding Sources, Financial Implications and Impact Statement:

There are no financial or funding implications.

Recommendation:

It is recommended that the attached Human Resources Principles and Strategic Directions be received for information.

Discussion:

An integrated approach to amalgamating the municipal workforces is being proposed through the Strategic Restructuring Initiative. The development and communication of principles is an important component in this initiative. The Principles and Strategic Directions will guide the strategic restructuring process and be communicated to staff.

________

Human Resources For The New City

Principles and Values

During the Strategic Restructuring Initiative, we will foster an organizational climate that promotes:

(a) the ability to manage the present and anticipate the future;

(b) open and effective internal and external communications;

(c) high performing people and functions;

(d) financial accountability, including the delivery of cost-effective services to our public;

(e) a safe, healthy and productive working environment;

(f) ethical business practices incorporating equitable treatment for all;

(g) continuous learning; and

(h) flexibility, responsiveness and openness to change.

Human Resources Strategic Direction:

I. We will establish a positive, constructive and harmonious relationship with employees and the trade unions, thereby creating a stable collective bargaining environment which contributes to the continuity of effective service delivery.

II. We will implement Human Resources policies and processes which:

(a) support operational efficiencies and effectiveness;

(b) promote fair and equitable treatment of employees;

(c) reduce bureaucracy;

(d) create clear accountability for decision-making; and

(e) safeguard the Corporation by fulfilling all legal and collective agreement requirements.

III. We will implement a staffing approach which will allow the re-structuring of the workforce. This will include:

(a) timely information to employees about their employment options;

(b) re-deployment and training of existing staff to fill positions in the new structure; and

(c) exit programs for any staff downsizing that may be required.

IV. We will develop and implement a total compensation strategy, including direct and indirect benefits. This strategy will achieve organization effectiveness by recognizing and rewarding exceptional performance, while taking into account the need to attract and retain skilled workers and maintain stability in the workforce.

V. We will implement pension and benefit plans that incorporate cost containment initiatives, while providing employees with a comprehensive package to meet the current and future needs of a diverse workforce.

VI. We will establish a performance management process which measures performance against identified core competencies and against requirements specific to the business unit and position.

VII. We will assist managers and business units to achieve their goals and to improve individual, group and team performance and productivity.

VIII. We will contribute to the creation of a learning organization to realize the full potential of each employee through innovative training and organization development programs and services.

IX. We will create a safe and healthy work environment with the involvement of all workplace parties in shaping policies, programs and supportive processes.

X. We will minimize the human, operational and financial impacts of occupational injuries and illnesses on the employees and the organization through an integrated corporate disability management program which includes a focus on early return to work.

XI. We will develop a fully integrated, distributed Human Resources Information System.

(City Council on February 4, 5 and 6, 1998, had before it, during consideration of the foregoing Clause, a communication (February 3, 1998) from the President, Local 79, Canadian Union of Public Employees, regarding the Strategic Restructuring - Human Resources Principles and Strategic Directions Initiative, outlining "Principles and Values" to be used during restructuring and urging Councillors to include in the Human Resources Principles and Directions commitments to avoid layoffs as a means to achieve budget targets and to maintain high quality service to the public.)

3

Staffing of Organizational Leadership Positions

(City Council on February 4, 5 and 6, 1998, amended this Clause by adding thereto the following:

"It is further recommended that:

(a) the recommendation of the Strategic Policies and Priorities Committee embodied in the confidential communication dated February 3, 1998, from the City Clerk, be adopted, viz.:

'The Strategic Policies and Priorities Committee on February 3, 1998, recommended to Council the adoption of the confidential report dated February 2, 1998, from Mayor Lastman, entitled "Ratification of Senior Staff", embodying the following recommendations:

"It is recommended that:

(1) the following candidates for the positions indicated be ratified for the positions of Solicitor, Auditor and Commissioners (4); Jeffrey Griffiths, Auditor; Osmond Doyle, Solicitor; Shirley Hoy, Commissioner responsible for the community and neighbourhood services portfolio; Virginia West, Commissioner responsible for the planning and urban development services portfolio; Barry Gutteridge, Commissioner responsible for the works and emergency services portfolio; and Margaret Rodrigues, Commissioner responsible for the corporate services portfolio;

(2) the Commissioner responsible for the economic development, culture and tourism portfolio be hired as soon as possible according to the process approved by Council, with a hiring team consisting of the Mayor or his designate, the Deputy Mayor, the Chair of the Corporate Services Committee and two other members to be appointed by Council, and the Chief Administrative Officer; and

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

(b) Councillors Ashton and Mahood be appointed as the additional City Council representatives on the hiring team;

(c) the Chief Administrative Officer be requested to submit a report to the Corporate Services Committee outlining a comprehensive policy for the hiring of senior City staff; and

(d) the Commissioner of Human Resources be requested to submit monthly update reports to the Corporate Services Committee, for the next six months, on the number of management employees hired to date.")

The Strategic Policies and Priorities Committee recommends the adoption of the report (January 19, 1998) from the Chief Administrative Officer, subject to:

(1) striking out 1.2(2) and inserting in lieu thereof the following:

"The Chief Administrative Officer engage the appropriate consultant expertise."; and

(2) striking out 1.2(4) and inserting in lieu thereof the following:

"That at the conclusion of the review by the Special Committee to Review the Final Report of the Toronto Transition Team of the structure and senior management positions, the total number of 'executive' commissioners recommended by this Special Committee, and the nominees for the positions of City Solicitor and Auditor, be reviewed by the Strategic Policies and Priorities Committee and the Strategic Policies and Priorities Committee make recommendations to Council, as soon as possible, on the 'executive' commissioners, in conjunction with the Special Committee's report on the organization structure."

The Strategic Policies and Priorities Committee submits the following report (January 19, 1998) from the Chief Administrative Officer:

Purpose:

This report will propose a process for the selection of individuals for several key leadership positions for the corporation.

Funding Sources, Financial Implications and Impact Statement:

In order to have an immediate impact on the Strategic Restructuring Initiative, it is imperative that key positions be filled in the new corporation. Leadership must be in place. Roles, responsibilities and accountabilities must be clearly laid out in order to proceed with the amalgamation.

There will be financial implications in terms of the eventual salaries and benefits for those individuals who will be selected for positions. The funding for these positions will be accommodated in the 1998 budgets for the various Departments.

Recommendations:

It is recommended that the proposed process for the selection of key leadership positions be adopted.

Background/History:

Under the authority of the City of Toronto Act, 1997, the Toronto Transition Team carried out a process of recruiting and selecting key positions for the (new) City of Toronto. The Transition Team determined those positions that would be required to enable the new City to seamlessly and effectively begin its operations on January 2, 1998. Among those positions were the Chief Administrative Officer, the Chief Financial Officer and Treasurer, the City Clerk, the Fire Chief and the Commissioner of Human Resources.

The Transition Team in its final report recommended an organizational structure to City Council which would be based on services and Departments clustered into four units -- Community and Neighbourhood Services; Urban Development Services; Emergency and Protective Services; and Finance and Corporate Services. The lead position of each of these clusters was named as "Executive Commissioner".

A recruitment and selection process was carried out by the Transition Team for these four positions. Subject to the review by the Special Committee to Review the Final Report of the Toronto Transition Team (the "Miller Committee") of the proposed organizational structure, the by-laws for these individuals will be submitted to Council for ratification.

The Toronto Transition Team also carried out a similar process to select candidates for other key statutory positions for the new City, including an interim Medical Officer of Health, City Solicitor, and City Auditor. Subject to the review by the "Miller Committee" of the proposed organizational structure, the by-laws for the Solicitor and Auditor will be submitted to Council for ratification. The Board of Health will make a recommendation to Council on the Medical Officer of Health.

Comments:

1.1 Selection of Candidates for Executive Commissioner, City Solicitor and City Auditor:

The process for recruitment and selection for the positions named above was extensive, thorough, rigorous and inclusive. Key external experts from the relevant field or discipline were recruited to sit on the selection panel. An external consulting/search firm was used to develop position profiles, core competencies and relevant selection criteria. This process ensured that the interview process was aligned with best practices in human resources recruitment and selection.

For further background on the process used by the Transition Team, a confidential report from the external consulting/search firm, Coopers & Lybrand Consulting, is on file in the office of the City Clerk.

1.2 Recruitment and Selection of the Second Level Executive Positions:

The "Miller Committee" will be reviewing the proposed organizational framework submitted to Council by the Toronto Transition Team in its final report. Should there be additional second level executive positions recommended, the following process for recruitment and selection is proposed:

(1) The competition be restricted to senior management employees from the former seven municipalities (now the new City).

(2) To ensure consistency of approach and results, Coopers & Lybrand be contracted to develop a position profile and core competencies and to assist with the interview process.

(3) An external panel of experts be constituted by the Chief Administrative Officer to perform the screening interviews and present a short-list of candidates for further interviews.

(4) A panel of five members of Council, along with the Chief Administrative Officer, be constituted to interview the short-list of candidates. The panel would include the Mayor, Deputy Mayor, Chair of the relevant Standing Committee, and two other appropriate members.

(5) The name of the recommended candidate be brought forward for ratification by Council.

The process will take a maximum of two months, depending on the schedule for Committee and Council meetings.

1.3 Recruitment and Selection of Level Three Senior Management Positions:

As the by-laws for executive level candidates are ratified, the recruitment and selection process for the level three management positions will be immediately commenced. These again will be restricted to competitions from the current workforce. Depending on the particular service or Department, competitions may also be restricted in terms of responsibility held in the former municipalities. External experts will be used as much as possible to add an additional level of expertise and validation to the interview panel.

The process will be facilitated by the Human Resources Department to ensure fairness and equity for current staff and to provide consistency, rigour and thoroughness in the process.

The only position that will be brought forward to Council for ratification and by-law enactment will be that of the Chief Building Official, since it is the final statutory position. The recommended candidate for all other positions will be approved by the Chief Administrative Officer, in accordance with the by-law for the CAO.

As the level three positions are filled, competitions or direct placement for other positions in the structure will occur in accordance with the Strategic Restructuring Initiative Staffing Strategy.

Conclusions:

It is imperative that the organization be stabilized and that the leadership positions be filled as soon as possible. A fair, objective and confidential process has been proposed to fill additional executive positions, if required as a result of the review of the organizational structure, and other senior management (level three) positions.

The recommended processes will allow us to complete the actions and initiatives which will effectively and efficiently amalgamate our services and workforces. They will also facilitate critical decisions which will need to be made in the 1998 budget process.

(City Council on February 4, 5 and 6, 1998, had before it, during consideration of the foregoing Clause, the following report (February 3, 1998) from the City Clerk:

Recommendation:

The Strategic Policies and Priorities Committee on February 3, 1998, recommended to Council the adoption of the report dated February 2, 1998, from Mayor Lastman respecting the ratification of senior staff; and that such recommendation be considered with Clause No. 3 of Report No. 1 of The Special Committee to Review the Final Report of the Toronto Transition Team, headed "City of Toronto Administrative Structure".

Background:

The Strategic Policies and Priorities Committee had before it the attached report (February 2, 1998) from Mayor Lastman respecting the ratification of senior staff.

(Report dated February 2, 1998 addressed to

the Strategic Policies and Priorities Committee

from Mayor Lastman)

Purpose:

The purpose of this report is to recommend the ratification of six senior staff.

Funding Sources, Financial Implications and Impact Statement:

Funds have been provided in the 1998 budget.

Recommendations:

It is recommended that:

(1) the following candidates for the positions indicated be ratified for the positions of Solicitor, Auditor and Commissioners (4); Jeffrey Griffiths, Auditor; Osmond Doyle, Solicitor; Shirley Hoy, Commissioner responsible for the community and neighbourhood services portfolio; Virginia West, Commissioner responsible for the planning and urban development services portfolio; Barry Gutteridge, Commissioner responsible for the works and emergency services portfolio; and Margaret Rodrigues, Commissioner responsible for the corporate services portfolio;

(2) the Commissioner responsible for the economic development, culture and tourism portfolio be hired as soon as possible according to the process approved by Council, with a hiring team consisting of the Mayor or his designate, the Deputy Mayor, the Chair of the Corporate Services Committee and two other members to be appointed by Council, and the Chief Administrative Officer; and

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

Coincident with these recommendations, I have directed that the Chief Administrative Officer provide a supplementary information report to Council on the process that was followed.)

4

Interim Salary Administration Practices and Policies -

Non-Union Employees

(City Council on February 4, 5 and 6, 1998, adopted this Clause, without amendment.)

The Strategic Policies and Priorities Committee recommends the adoption of the following joint report (January 19, 1998) from the Commissioner of Human Resources and the Chief Administrative Officer:

Purpose:

This report recommends appropriate salary administration practices and policies to be utilized until a new Compensation Program is established for non-union employees.

Recommendations:

It is recommended that:

(1) Council adopt the Interim Salary Administration practices and polices until a new Compensation Program has been approved and implemented;

(2) non-union employees continue to be paid in accordance with their previous terms and conditions of employment on an interim basis; and

(3) new provisions or amendments related to "red-circling" for non-union employees be considered in conjunction with implementation of the new Compensation Program.

Background:

The Public Sector Labour Relations Transition Act (Bill 136) provides for continuation of the terms and conditions of employment of employees, including salaries, until amended by the new Council.

In November 1997, a Request for Proposals (RFP) for compensation consulting services was issued in order to establish a total Compensation Program for Executive, Management and Excluded positions. A further report will be submitted to the appropriate Committee and Council following a review and evaluation of Proposals.

Until a new Compensation Program is implemented, interim pay policies on a short-term basis are required to ensure equitable treatment of employees from the seven former municipalities.

Discussion:

Interim Non-Union Pay Practices:

Until the establishment of a new Compensation Program, interim pay practices are being introduced. Employees will be notified in writing that salaries are under review and interim compensation provisions will be in effect until such time as a new Compensation Plan has been approved by Council and implemented. Subsequently, positions and employees will be placed in an appropriate salary range within the new pay structure.

(a) Interim Pay - The salary of each non-union employee who is on staff at January 1, 1998, will remain unchanged throughout the interim period unless a change in organizational level occurs such as a promotion or voluntary demotion.

(b) Interim Salary Ranges - Human Resources is currently developing interim salary ranges and benchmark jobs based on an analysis of current responsibilities and salary levels. New approved permanent positions will be placed within these interim salary ranges.

(c) Promotions - Employees who receive a promotion on a permanent or acting basis to an approved permanent position which is in a higher interim salary range will receive either:

(i) a salary increase of 5 percent (not to exceed the maximum of the new range); or

(ii) the minimum of the new range, whichever is greater.

(d) Demotions - Employees who, at their own request, are appointed to a position with a lower interim salary range will be immediately placed in the interim salary range of the new position at a salary rate closest to but not higher than their current pay. The new salary will not exceed the maximum of the interim range for the position.

(e) Deletion of Positions - Where an employee's position has been deleted and the affected employee is offered an alternate position within a lower level salary range, the employee's current salary will be protected subject to a red-circling policy which will be addressed when the new Compensation Plan is approved.

(f) Lateral Transfers - Employees who are laterally appointed to a new position within the same level interim range will be placed in the range of their new position at a salary rate closest to but not higher that their current base salary, or at the minimum of the new range whichever is greater.

(g) Assignments - Employees who are performing in a higher-rated position on an "acting" basis at January 1, 1998, will, upon reversion, be returned to their previous base pay.

Where an employee is temporarily promoted to perform the work of a new approved permanent position the employee will be paid in accordance with the Interim Salary Administration practice on Promotions (see above).

All "acting" assignments will be reviewed every six months.

(h) Transition/Secondment Assignments - Prior to an approved permanent position being established, where an employee has been temporarily seconded and/or is assigned to perform transition or project work, or is temporarily assigned, the employee will be paid at his/her current base pay.

(i) Increments - Employees who are not at the maximum of their current salary range and are continuing to perform essentially the same duties, will continue to receive increments for which they would previously have been eligible until the new Compensation system is approved and implemented.

Conclusions:

It is proposed to establish a new Compensation Program applicable to non-union employees within the following political, financial and operational framework:

(a) compliant with applicable legislation;

(b) flexible to meet ongoing changes and challenges;

(c) fair, equitable and gender-neutral;

(d) promoting, recognizing and rewarding exceptional performance;

(e) integrating core competencies and encouraging teamwork orientation;

(f) able to attract and retain exceptional employees;

(g) recognizing management accountability and fiscal responsibility in achieving results; and

(h) appropriate competitive positioning when comparing total compensation to high-performing broader public sector and private sector organizations.

Until this program has been implemented, interim salary administration practices and policies are required.

5

Other Items Considered by the Committee

(City Council on February 4, 5 and 6, 1998, received this Clause, for information.)

(a) Briefing of the Strategic Policies and Priorities Committee.

The Strategic Policies and Priorities Committee reports having received overhead presentations from the following regarding the responsibilities of the Committee and on the short and long-term workplan:

(a) Mr. Michael Garrett, Chief Administrative Officer;

(b) Ms. Brenda Glover, Commissioner of Human Resources; and

(c) Ms. Wanda Liczyk, Chief Financial Officer and Treasurer.

(b) 1998 Budget Process.

The Strategic Policies and Priorities Committee reports having:

(1) referred the report dated December 18, 1997, from the Chief Financial Officer and Treasurer, respecting the proposed 1998 Operating Budget Process to the Budget Committee for consideration and a report back to the Strategic Policies and Priorities Committee;

(2) referred the report dated December 23, 1997, from the Chief Financial Officer and Treasurer, respecting the proposed 1998 Capital Budget Process to the Budget Committee for consideration and report back to the Strategic Policies and Priorities Committee;

(3) requested the Chief Administrative Officer and the Chief Financial Officer to report to the Budget Committee on the process to be followed in respect of citizen input on the Budget; and

(4) requested the Chief Administrative Officer and the Chief Financial Officer to consider a Committee of the Whole meeting as being one of the venues for hearing deputations on the draft budget.

(i) (December 18, 1997) from the Chief Financial Officer and Treasurer, setting out a process and timetable to adopt the 1998 Operating Budget for information.

(ii) (January 18, 1998) from Ms. Joan Doiron, Co-Chair of Environmentalists Plan Transportation, urging Council to make the maintenance and enhancement of public transit services and the associated green transportation (pedestrian amenities and cycling) services a key priority, and to strongly encourage the public to use transit, in order to reduce car dependence.

(iii) (December 23, 1997) from the Chief Financial Officer and Treasurer, setting out a process and timetable to adopt the 1998 Capital Budget, and recommending that the strategy be received for information.

(c) Staffing Strategy for Management and Excluded Staff.

The Strategic Policies and Priorities Committee reports having received the following joint report and having directed that a copy be forwarded to the Budget Committee for information:

(January 19, 1998) from the Commissioner of Human Resources and the Chief Administrative Officer, providing an overview of a transitional staffing strategy for the amalgamation of the seven existing municipal workforces into Departments in the City of Toronto, that balances the business needs of Departments with recognition of the skills and abilities of existing municipal staff, and recommending that the strategy be received for information.

(d) Separation Program for Executive Management and Non-Union Staff.

The Strategic Policies and Priorities Committee reports having:

(1) referred the following confidential joint report to the Budget Committee for consideration and a report back to the Strategic Policies and Priorities Committee; and

(2) requested the Budget Committee to consider the matter In Camera:

(January 19, 1998) from the Commissioner of Human Resources, Chief Financial Officer and Treasurer, and the Chief Administrative Officer, setting out a separation program for Executive Management and Non-Union staff.

(e) Radio Communications Switch for the Toronto Police Service.

The Strategic Policies and Priorities Committee reports having:

(1) referred the following transmittal from the Emergency and Protective Services Committee to the Budget Committee for review, and having requested the Budget Committee to completely satisfy itself that the system being recommended for purchase is 100 percent compatible with the systems used by the other emergency services; and

(2) requested the City Clerk to forward the background information on this matter to the Budget Committee for consideration:

(i) (January 15, 1998) from the Emergency and Protective Services Committee advising that the Committee on January 13, 1998, recommended to the Strategic Policies and Priorities Committee the adoption of the report dated December 15, 1997, from the Chair, Metro Toronto Police Services Board, wherein it is recommended that:

"The Emergency and Protective Services Committee approve a request for pre-budget approval in the amount of $5.0million, along with the release of funds, from the new City Council, for a replacement radio dispatch switch for the Toronto Police Service."

(ii) (November, 1997) Project Charter, entitled "Radio Communications Switch", submitted by the Toronto Police Services, Computing and Telecommunications, Radio and Electronics Unit.

(f) Contract No. T-8-98:

Bathurst Street Bridge Over the Toronto Terminal Railways South of Front Street -Structure Rehabilitation.

The Strategic Policies and Priorities Committee reports having referred the following transmittal from the Urban Environment and Development Committee to the Budget Committee for inclusion in the 1998 Capital Budget and a report back to the Strategic Policies and Priorities Committee meeting to be held prior to the Council Meeting scheduled to be held on February 4 and 5, 1998:

(January 13, 1998) from the Urban Environment and Development Committee advising that the Committee on January 12, 1998, recommended to the Strategic Policies and Priorities Committee, and Council, the adoption of the report (December 15, 1997) from the Commissioner of Transportation, recommending the award of a contract for the rehabilitation of the Bathurst Street bridge over the Toronto Terminal Railways south of Front Street.

(g) Contracts Nos. T-43-98 and T-44-98:

Minor Bridge Repairs on Metropolitan Roads.

The Strategic Policies and Priorities Committee reports having referred the following transmittal from the Urban Environment and Development Committee to the Budget Committee for inclusion in the 1998 Capital Budget and a report back to the Strategic Policies and Priorities Committee meeting to be held prior to the Council Meeting scheduled to be held on February 4 and 5, 1998:

(January 13, 1998) from the Urban Environment and Development Committee advising that the Committee on January 12, 1998, recommended to the Strategic Policies and Priorities Committee, and Council, the adoption of the report (December 16, 1997) from the Commissioner of Transportation recommending the award of Contracts Nos. T-43-98 and T-44-98 for minor bridge repairs on "Metropolitan" roads.

(h) Contracts Nos. T-2-98, T-3-98, T-4-98 and T-5-98:

Permanent Repairs to Utility Road Cuts.

The Strategic Policies and Priorities Committee reports having referred the following transmittal from the Urban Environment and Development Committee to the Budget Committee for inclusion in the 1998 Capital Budget and a report back to the Strategic Policies and Priorities Committee meeting to be held prior to the Council Meeting scheduled to be held on February 4 and 5, 1998:

(January 13, 1998) from the Urban Environment and Development Committee advising that the Committee on January 12, 1998, recommended to the Strategic Policies and Priorities Committee, and Council, the adoption of the report (December 16, 1998) from the Commissioner of Transportation recommending the award of four contracts Nos. T-2-98, T-3-98, T-4-98 and T-5-98 for permanent repairs to utility road cuts.

(i) Contracts Nos. T-6-98, T-7-98, T-21-98 and T-22-98:

General Maintenance of Metropolitan Roads.

The Strategic Policies and Priorities Committee reports having referred the following transmittal from the Urban Environment and Development Committee to the Budget Committee for inclusion in the 1998 Capital Budget and a report back to the Strategic Policies and Priorities Committee meeting to be held prior to the Council Meeting scheduled to be held on February 4 and 5, 1998:

(January 13, 1998) from the Urban Environment and Development Committee advising that the Committee on January 12, 1998, recommended to the Strategic Policies and Priorities Committee, and Council, the adoption of the report (December 16, 1998) from the Commissioner of Transportation recommending the award of four contracts Nos. T-6-98, T-7-98, T-21-98 and T-22-98 for general maintenance of "Metropolitan" roads.

(j) Membership of the Strategic Policies and Priorities Committee.

The Strategic Policies and Priorities Committee reports having received the following communication:

(January 9, 1998) from the City Clerk listing the members appointed to the Strategic Policies and Priorities Committee for a term of office expiring on May 31, 1999, and/or until their successors are appointed.

Respectfully submitted,

MEL LASTMAN,

Chair

Toronto, January 19, 1998

(Report No. 1 of The Strategic Policies and Priorities Committee, including additions thereto, was adopted, as amended, by City Council on February 4, 5 and 6, 1998.)