November 29, 1999

To: Budget Advisory Committee

From: Commissioner, Community and Neighbourhood Services

Subject: Social Services

2000-2004 Capital Program

Purpose:

To report back to the Budget Advisory Committee regarding the proposal to relocate two Social Services offices to surplus Hydro facilities in accordance with the Corporate direction to find lease savings where possible using existing City owned facilities.

Financial Implications and Impact Statement:

There are no financial implications associated with the recommendations.

Recommendations:

"It is recommended that:

(1) the 2000 Capital Budget request of $13,238 million projected costs for relocating two Social Services offices beginning in 2000 be deferred until the Corporate Master plan is completed and approved; and

(2) that the Social Services Division negotiate through Corporate Services lease renewals for the sites located at 220 Attwell Drive and 5639 Finch Avenue East for terms up to, but not exceeding 5 years."

Background:

As the lease for each of the District Social Services offices is up for renewal the Division is requested to review alternate potential sites in surplus City owned property. This is in keeping with the Corporate objective of reducing lease costs where possible. Two potential relocations were the offices currently located at 220 Attwell Drive in Etobicoke and 5639 Finch Avenue East in Scarborough. Surplus Hydro facilities in both Etobicoke at 2 Civic Centre and in Scarborough at 1530 Markham Road are potential sites.

Both sites have leases that need to be renewed in 2000 and the program submitted a capital request in anticipation of a positive feasibility study tied to the Corporate Master plan that supported these two relocations.

Comments:

Historically suitable sites have been difficult to locate as Social Services offices were not preferred tenants.

Since the recession in the early 90's the Social Services Division has strategically developed service centres in the catchment area of the client group that they serve and currently has 14 sites across the City. The sites are in a mix of locations, 11 are leased and three are in City owned property. The relocation of these two sites will take services out of the community that they serve.

Over the past number of years the Division has undertaken a significant retrofit of its sites to support the delivery of mandated employment and income support programs and to convert offices to new technologies. Much of this was completed through leasehold improvements and the Ministry contributed 100% funding in both sites for the technology conversions.

Additionally, in the Scarborough site the Division has negotiated with HRDC to pay for and establish an Employment Resource Centre that is jointly operated and supports Social Services clients and other unemployed members of the community. The centre is located in the same mall as the Social Services office.

Funding for accommodation costs have been changed under the downloading legislation which now permits 50/50 cost sharing of costs in leased sites and notional market value rents for City owned sites. Cost sharing on capital costs for relocations as being recommended is not available.

Conclusion:

In accordance with the timelines envisioned by the Corporate Master Plan, and the Division's need to renew the leases at the existing sites, Corporate Services has recommended that the leases be renewed for a period up to five years. Should the Corporate Master Plan support the relocation of these two facilities to the Hydro buildings, feasibility studies will need to be completed and it will take significant time to relocate the existing tenants, design and retrofit the proposed space.

Contact:

Heather MacVicar

General Manager, Social Services Division

Telephone: 392-8952

Fax: 392-8931

Email: hmacvic@toronto.ca

Shirley Hoy Brenda Glover

Commissioner Acting Commissioner

Community and Neighbourhood Services Corporate Services