1 Year 2000 Priority 1 Business Functions Status Report and Identification of Priority 2 and 3 Business Functions

2 "Building on a Strong Foundation for the 21st Century: New Directions for Immigration and Refugee Policy and Legislation" - Announcement by Minister of Citizenship and Immigration - January 6, 1999

3 Update on Hostel Occupancy

4 Board of Directors for New Toronto Hydro Corporation

(City Council on April 13, 14 and 15, 1999, adopted this Clause, without amendment.)

(City Council on March 2, 3 and 4, 1999, deferred consideration of the foregoing Clause to its next regular meeting on April 13, 1999.)

The Strategic Policies and Priorities Committee recommends the adoption of the following report (February 9, 1999) from the Commissioner of Corporate Services:

Purpose:

The Year 2000 Business Continuity Plan Status Report (January 1999) outlines the following information as requested by Council at its November 1998 meeting:

(1) an inventory of priority two and three Year 2000 projects for the City of Toronto's Departments, Agencies Boards and Commissions;

(2) the estimated completion date for each priority 2 and 3 project, where provided;

(3) the planned budget required to ensure year 2000 readiness for each priority 2 and 3 project;

(4) the current status of each priority 2 and 3 project;

(5) the amount and source of funding for the year 2000 priority 2 and 3 projects for the year 2000 program;

(6) status report of each priority 1year 2000 function;

(7) status report on the ABC's and their state of readiness;

(8) status report on expenditures for priority 1 year 2000 functions; and

(9) change requests.

Funding Sources:

No additional funding is requested at this point.

Recommendations:

It is recommended that:

(1) the 64 priority 2 and 3 business functions identified by the Operating Departments be approved for remediation;

(2) the Program Office be given the authority to recommend to the Year 2000 Steering Committee that the City extend, re-negotiate, terminate or enter into new contracts that affect priority 2 and 3 business functions to minimize major disruptions of business units doing remedial work on priorities 2 and 3 business functions thereby putting business continuity at risk;

(3) the Chief Administration Officer be given approval to continue to enter into agreements for priority 2 and 3 business functions in support of the above for the full amount of expenditures, until June year 2000, reporting on a regular basis to the Strategic Policies and Priorities Committee;

(4) the Strategic Policies and Priorities Committee refer this report to Council for approval; and

(5) the Year 2000 Project Office be requested to report monthly to the Strategic Policies and Priorities Committee on the status of priorities 2 and 3 business functions.

Comments:

At its meeting of July 29, 30 and 31, 1998, Council directed the Year 2000 Program Office to report monthly to the Strategic Policies and Priorities Committee on the progress of the Year 2000 plan. At its meeting of November 17, 1998, the Strategic Policies and Priorities Committee adopted the Year 2000 Business Continuity Plan to remedy the 84 priority 1 business functions identified and approved the $149.6 million requested. The report was forwarded to Council at its meeting of November 25, 26 and 27, 1998 and was adopted.

At its meeting of November 25, 26 and 27, 1998, Council directed the Year 2000 Program Office to report to the Strategic Policies and Priorities Committee by February, 1999, on the funding requirements for business functions identified as priority 2 (important) and 3 (when time permits).

In November 1998, the City of Toronto began remediating the 84 critical business functions immediately to ensure business continuity for the millennium. At the same time, operating departments and citywide initiatives were requested to complete the inventory phase of all priority 2 and 3 business functions by February 1999. To date 38 priority 2 and 26 priority 3 business functions have been identified. For each of these 64 business cases, a cost-effective strategy for remedy has been recommended. The Commissioner for each operating department has approved the priority 2 and 3 business cases identified in their area.

The projected cost of ensuring business continuity for the 37 departmental business functions for priority 2 is $11.7 million. In addition, $0.9 million is required for the one citywide priority 2 business function. The projected cost for the 26 departmental business functions for priority 3 is $2.2 million. A project contingency fund of $2.2 million, which is 15 percent of the projected estimate of $14.8 million has been included as part of the overall total budget. This will cover purchased services and taxes where they exceed the estimated totals. Expenditures from project contingency fund will be managed through a change request process with prior approval from the Year 2000 Steering Committee.

Budget Summary:

Within each of the departments a total of 63 priority 2 and 3 projects have been identified, and one citywide initiative. A total of $2.2 million in contingency funding has been allocated. Appendix 1 gives a summary of each of the priority 2 and 3 business functions and their status.

Contingency Planning:

The City evaluates all critical business functions based on the level of year 2000 compliance coupled with the adequacy of the contingency plans for the 84 priority 1 business functions. The objective is to identify risks, on a predictive basis, so that they can be mitigated. Varying risk levels invoke a variety of actions. For projects that are on target, no action is required. For projects that are at risk, the solution may be to abandon remediation and immediately act on the contingency plan. A contingency plan is required for all priority 1 business functions.

The Emergency Preparedness Organization within the City's Works and Emergency Services Department is entrusted with the development of the City's Emergency Preparedness plans. The Year 2000 Program is working closely with this group to ensure year 2000 scenarios are identified. Changes required to the City's Emergency Preparedness plans to address year 2000 scenarios will be identified.

The Year 2000 Program Office will be reporting on proposed contingency plans for priority 1 business functions and year 2000 emergency preparedness plans and requesting any funds required to implement or execute these plans.

Status report on priority 1 business functions:

Departmental critical 1 business functions:

All Departments are on track and well into the remediation phase with the exception of Finance. However, hiring project resources and the identification of a contingency plan has mitigated the risk associated with Finance. Test plans are being developed to ensure all systems are functional following the current remediation phase. Appendix 2 is attached indicating the current status of each of the critical 1 business functions.

Status report on the Toronto Transit Commission (TTC):

Project plans to remediate business applications, technology infrastructure, and embedded systems are in place. Seven major teams reporting to the Y2K Project Office have been created and staffed with technical resources. User resources for testing have been identified and commitments made. The seven teams, supporting approximately 45 project areas, include:

Financial;

Transportation;

Work Order Maintenance and Materials;

Engineering;

Corporate;

Technology Infrastructure; and

Embedded Systems.

A Y2K Project Charter has been finalized and published, defining program scope, approach, responsibilities, and budget.

A final Assessment Report will be produced in February. Some fine-tuning of initial project plans is expected.

Current remediation efforts are scheduled and expected to be completed by September. Exceptions to this include a small number of replacement business applications, such as Scheduling, Timeline, and Engineering Document Control. On balance, the project is tracking 2-3 weeks behind schedule, with no further slippage expected.

The TTC has initiated contingency/continuity planning, to accommodate both IT application failures and external problems related to power supply, communications, and water which will significantly impact service. The TTC is working with the City and Police in support of a consolidated Emergency Services planning effort.

Higher than expected costs are being realized due to the scope of application and infrastructure concerns. The technology infrastructure in particular is quite obsolete and a greater replacement than initially budgeted will be required to create a stable and compliant environment. An internal review of project costs and sources of funding is underway. Additional funding is not requested at this time.

A chart has been provided in Attachment 3.

Status report from Toronto Hydro January 28, 1999:

Of the seven areas that have been identified for tracking Y2K progress (Electrical Distribution, Facilities, Meters, Customer and Energy Services, Corporate Services, Telecommunications, and I/T Infrastructure), Hydro has completed the inventory and assessment phase for all but one. Planning and performance of remediation and testing work is progressing well.

The top priorities for Toronto Hydro's Y2K readiness work are:

(1) The safety of the public and their employees,

(2) The continuity of electrical supply to their customers, and

(3) Maintaining critical business functions, such as accurate billing.

Items in the inventory of possible Y2K exposure have been assessed as 'A', 'B', or 'C' items, depending upon their impact on the Y2K readiness goals. 'A' items are those which have a significant impact on the Y2K goals, 'B' items are those which are important to an area of the business but do not significantly impact the Y2K goals, and 'C' items are those others which would be nice to have. All items in the Y2K inventory have been categorized by the Y2K team, in concert with the responsible manager, and listings have been provided to each Senior Vice-President for confirmation of completeness and categorization. The Y2K team will continue to monitor and follow up on progress on the 'A' items. The 'B' and 'C' items will be addressed in the normal course of business.

The Toronto Hydro Executive Committee has approved a testing policy for Y2K items. The 'A' item must be tested, and the responsible Senior Vice-President will approve the test results. The responsible Senior Vice-President must approve exceptions to this testing requirement. The 'B' and 'C' items may be tested for Y2K readiness, within the context of business as usual.

Additional consulting staff have been utilized to assist in the inventory, reporting, and test planning for Y2K items. IBM is Toronto Hydro's consultant for Y2K, and is assisting in project management and methodology.

Toronto Hydro is continuing to participate on the Canadian Electric Association (CEA) Year 2000 Working Committee, and thereby is gaining access to the work done by other major Canadian utilities, including their supplier, Ontario Hydro. Toronto Hydro participated in a periodic survey on Y2K readiness that was developed by the North American Electric Reliability Council (NERC) and distributed through the CEA. Canadian information from that survey is used by the CEA to advise federal and provincial government agencies about the current state of the industry.

Ontario Hydro continues to report that its Y2K program is on track. Operational readiness is scheduled for mid-1999. Toronto Hydro has met with representatives from the transmission group within Ontario Hydro, and has jointly inspected nine of their stations to verify readiness at the interface between Ontario Hydro's equipment and theirs. Toronto Hydro is also working with Ontario Hydro on a test of one of Ontario Hydro's major stations. They plan to move the equipment clocks ahead, so that "January 1, 2000" will appear to happen soon after the start of the test. The equipment will be allowed to continue in this way for a couple of months, to check the leap year functionality.

The station to be tested serves Toronto Hydro customers in the southwest area of the City of Toronto. The highway 401 bound this area to the north, Spadina to the east, Lakeshore to the south and Eglinton to the west. A communication plan has been developed to minimize any negative impact from the test, and to maximize the positive aspect. No date information is passed between the Ontario Hydro equipment and the Toronto Hydro equipment. As long as there is no interruption from Ontario Hydro, Toronto Hydro customers will be unaffected by this test.

Customers or other organizations that have asked about Toronto Hydro's Y2K readiness program have been sent a Y2K Statement, which is attached to this report in Appendix 4.

Contingency planning for Y2K was scheduled by Toronto Hydro to be done in the second quarter of 1999. Toronto Hydro has found that this schedule would not keep pace with the electricity industry as a whole, and they are therefore starting to develop contingency plans immediately, although the scheduled completion date, for this and for Y2K readiness of critical items remains June 30, 1999. Toronto Hydro anticipates that most contingencies will be covered by plans that already exist in the context of normal operations.

Toronto Hydro continues to operate within the budgeted cost to the company for Year 2000 readiness. In many cases, Toronto Hydro has achieved a collateral benefit within the amalgamation project, by eliminating a system that was not Y2K ready, and utilizing one that is.

Status report on the City of Toronto's expenditures:

Attached is a status report on the $149.6 million allocated to the Y2K project to remedy all critical 1 business functions. As of January 31, 1999, $11.2 million has been committed or spent. The majority of this expenditure is for resources, hardware, servers, and network equipment. See attachment 5.

Change requests:

Project Management Office:

Council has requested, based on a recommendation by the Budget Committee, the Year 2000 Program Office to review, assess and report on the Year 2000 action plan of the City's agencies boards and commissions. If any issues are identified which could impact the City of Toronto's Year 2000 readiness, the Program Office will escalate these items to the Strategic Policies and Priorities Committee for action. A change request was issued and approved by the Year 2000 Steering Committee in the amount of up to $750,000. These funds will be utilized to fund a Project Manager and 3 staff to take on this pro-active role. This amount will be drawn from the project contingency fund.

Project Management Office Tools:

The office space available to house the Year 2000 project team did not meet the team's requirements, and the Year 2000 Program Office is working with Facilities Management to implement the necessary modifications to provide a suitable working environment for the team. A change request was issued and approved by the Year 2000 Steering Committee in the amount of up to $400,000.00. This amount will be drawn from the project contingency fund.

Communication:

Communication consultants have been retained to work with Corporate Communications and the Year 2000 Project Office to implement a pro-active public communication campaign on the City of Toronto's Year 2000 action plan, status and contingency plans. This firm will also interact with Toronto Hydro, TTC and Toronto Police to ensure that the City provides accurate and consistent information to the public. This firm will also participate on the communications team for the City's emergency preparedness committee. All information to be distributed will be reviewed and a copy retained by the Year 2000 program office to ensure due diligence. The public communications plan, currently being developed, will be brought forward to the Strategic Policies and Priorities Committee once complete. A change request was issued and approved by the Year 2000 Steering Committee in the amount of up to $300,000.00. This amount will be drawn from the project contingency fund.

Partnership and Agreements:

The legal firm of Fasken Campbell Godfrey has been retained by the City Solicitor to provide legal support to the Year 2000 Program Office. The services will include the review of all year 2000 information including contracts and communication documents for the public and other partners to be distributed by the City, the provision of legal advice on year 2000 issues and contract services for the new and re-negotiated contracts of the City. Due to the volume of work, the Year 2000 Program Office projects a requirement for two dedicated resources and additional resources as required. A change request was issued and approved by the Year 2000 Steering Committee in the amount of up to $750,000.00. This amount will be drawn from the project contingency fund.

Community and Neighborhood Services:

Children's Services:

A change request was issued and approved to increase the budget for the Children Services business function from $5,000.00 to up to $75,600.00 to hire resources to complete the required Year 2000 testing, documentation and contingency planning. The previous estimate of the effort was inadequate to complete the work required. The Year 2000 Steering Committee approved the request. This amount will be drawn from the project contingency fund.

Conclusion:

The City of Toronto's Year 2000 readiness program is moving forward as anticipated. Council will continue to receive program reports as requested.

Contact:

Lana Viinamae, Director Year 2000

Toronto Hydro Y2K Statement:

At Toronto Hydro, we have been aware of the Year 2000 problem for several years now and have been actively working on a solution since 1997. Our Y2K Plan has been given high priority, with support from our Executive Committee, and we have dedicated both personnel and resources to address the problem. Currently, our Y2K Team is assessing all computer and electrical distribution systems and components for their ability to provide an uninterrupted supply of electricity to customers as we pass the millennium.

Because we meet record peak demands during heat waves and quickly restore service in the aftermath of all kinds of weather, preparing for and dealing with operating risks is an ingrained part of our business. Our Year 2000 preparations centre around three major priorities:

(i) the continuity of electrical supply to customers;

(ii) the safety of the public and utility employees; and

(iii) the ability to maintain critical business functions.

Our Y2K initiatives are consistent with the electricity industry timeline suggested by the North American Electric Reliability Council (NERC), a coordinating body charged with ensuring the smooth transition of the North American power industry into the new millennium. Through participation in the Canadian Electric Association committee on Y2K readiness, we've also been able to review the initiatives and benefit from the experience of other utilities right across the country. Our Y2K planning is on schedule with, and in some areas ahead of, the Y2K planning of other utilities. We believe that our timeline is ambitious but achievable:

(i) team members now have a plan in place to address all computer systems and components that are not Y2K-ready;

(ii) all critical systems and components that are not Y2K-ready will be replaced, or upgraded and fully tested for readiness by June 30, 1999;

(iii) a contingency plan addressing "what ifs" is already being developed; and

(iv) less critical items such as internal functions, which have no customer impact, will be dealt with on or after June 30, 1999.

Our Y2K team of computer and utility industry experts reports monthly to our Executive Committee. A database has been developed to help track progress on the more than 1500 item types that have been identified and the team has given priority to areas which could affect customer service.

The Y2K problem, however, does not only affect Toronto Hydro; it also affects our suppliers. We're working with industry associations and with Ontario Hydro to assess the impact of Y2K on their generation and transmission operations. Part of our plan involves obtaining assurances from them that their Year 2000 plans are on track to provide us - and our customers with - an ongoing power supply.

At Toronto Hydro, we feel that we are well under way in addressing Year 2000 issues. While no utility can ever guarantee electrical supply at any time due to the nature of electricity, preparing for and dealing with operating risks is an ingrained part of our business. While the Year 2000 problem is of universal concern, we believe that a well-defined action plan will enable us to meet the challenge successfully.

(A copy of the attachments to the foregoing report were forwarded to all Members of Council with the February 23, 1999, agenda of the Strategic Policies and Priorities Committee, and a copy thereof is also on file in the office of the City Clerk.)

(City Council on April 13, 14 and 15, 1999, amended this Clause by:

(a) amending Recommendation No. (1) of the Strategic Policies and Priorities Committee to provide that Items Nos. (6) and (7) appearing under the section entitled "Comments and/or Discussion and/or Justification", embodied in the joint report dated February 9, 1999, from the Commissioner of Community and Neighbourhood Services and the Executive Director of Human Resources, be included for discussion purposes when Mayor Lastman meets with the Federal Minister of Citizenship and Immigration and the Federal Minister Responsible for the Greater Toronto Area;

(b) adding to Recommendation No. (2) of the Strategic Policies and Priorities Committee the words "and the Mayor invite all Members of Council to attend this meeting", so that such recommendation shall now read as follows:

"(2) that the Mayor be requested to arrange a meeting with the Honourable Lucienne Robillard, Federal Minister of Citizenship and Immigration, and the Honourable David Collenette, Federal Minister responsible for the GTA, to discuss these issues and the Mayor invite all Members of Council to attend this meeting;"; and

(c) adding thereto the following:

"It is further recommended that:

(1) Recommendations Nos. (2) and (3) embodied in the report dated February 26, 1999, from the Commissioner of Community and Neighbourhood Services, be adopted, viz.:

'It is recommended that:

(2) the federal government be requested to reimburse the City of Toronto the municipal costs associated with the provision of social assistance, emergency shelter and public health services to immigrants and refugees; and

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

(2) Recommendations Nos. (3) and (4) of the Advisory Committee on Immigration and Refugee Issues embodied in the communication dated March 1, 1999, from Councillor David Miller, Chair, Advisory Committee on Immigration and Refugee Issues, be adopted, viz.:

'(3) that City Council request the Federal and Provincial governments to take action to implement strategies to eliminate barriers to access to trades and professions; and

(4) that City Council request the Federal government to consult on relevant policy issues with major cities in Canada that receive large numbers of immigrants and refugees, and the appropriate City staff also be requested to initiate consultations in this regard.' ")

(City Council on March 2, 3 and 4, 1999, deferred consideration of this Clause to its next meeting on April 13, 1999.)

The Strategic Policies and Priorities Committee recommends:

(1) the adoption of the joint report (February 9, 1999) from the Commissioner of Community and Neighbourhood Services and the Executive Director of Human Resources; subject to striking out the following Items Nos. (6) and (7) contained therein, appearing under the section entitled "Comments and/or Discussion and/or Justification":

"(6) Undocumented convention refugees:

The document on new directions proposes a reduction in the waiting period from five to three years before the undocumented refugees can apply for landing. While this proposal is an improvement on the present policy, it does not address the issue of establishing other means of identification for the purpose of applying for permanent residence, such as affidavits. The delay in obtaining permanent resident status would prevent the refugees from accessing benefits available to landed immigrants and prolong their dependence on social assistance, which would have financial implications on the City.

"(7) Inland refugee determination process and security measures:

The immigrant and refugee service sector has expressed concern about a few proposals in the inland refugee determination process and security measures. For instance, a 30-day time limit for making a refugee claim, with exception in "compelling circumstances" will make certain categories of refugee claimants, such as women fleeing domestic violence or sexual assault and people fleeing persecution based on sexual orientation, particularly vulnerable."; and

(2) that the Mayor be requested to arrange a meeting with the Honourable Lucienne Robillard, Federal Minister of Citizenship and Immigration and the Honourable David Collenette, Federal Minister responsible for the GTA, to discuss these issues.

The Strategic Policies and Priorities Committee reports, for the information of Council, having requested the Commissioner of Community and Neighbourhood Services:

(1) to submit a report directly to Council for its meeting scheduled to be held on March 2, 1999, on the cost of the City's immigration and refugee programs; and

(2) to prepare an inventory of immigration and refugee settlement programs and priorities and report thereon to the appropriate standing committee.

The Strategic Policies and Priorities Committee submits the following joint report (February 9, 1999) from the Commissioner of Community and Neighbourhood Services and Executive Director of Human Resources:

Purpose:

The purpose of this report is to review the proposed directions for Canada's immigration and refugee policy and legislation from the perspective of the City of Toronto's position on immigrant and refugee issues. The proposed changes will have a significant impact on the City of Toronto, which has the largest immigrant population of any metropolitan area in Canada.

Funding Sources, Financial Implications and Impact Statement:

There are no immediate financial implications. If the City's recommendations are adopted by the Federal Government, there may be potential for reimbursement to municipalities for some social service costs provided to immigrants and refugees, and there may be significant long-term impact on the decision-making, development and delivery of services to the residents of the City who are immigrants and refugees.

Recommendations:

It is recommended that:

(1) Council reaffirm its position on the Settlement Legislative Review of the Immigration Act as identified in the March 1998 response to the Settlement Legislative Review consultation, and the recommendations on the Urban Forum on Immigration and Refugee Issues addressed in the Chief Administrative Officer's report to the Task Force on Community Access and Equity in May, 1998, specifically:

(i) the inclusion of the City of Toronto by the Federal Government in formal consultation and collaboration on relevant policy issues;

(ii) the maintenance of an ongoing federal role in settlement services with a commitment to establishing clear accountability guidelines and providing adequate funds to the community-based sector to ensure equitable access to settlement services;

(iii) the reimbursement to municipalities for social assistance, hostel and other service costs borne by the municipalities for services and programs provided to immigrants and refugees;

(iv) a review of the impact of the right of landing fee and the waiting period for landing required for undocumented convention refugees on the settlement and integration of immigrants and refugees by the Federal Government; and

(v) a firm commitment to access to trades and professions be reflected in the new immigration and refugee policy and legislation;

(2) this report be forwarded to the Advisory Committee on Immigration and Refugee Issues to be incorporated in submission to Citizenship and Immigration Canada regarding the proposed new directions for Canada's immigration and refugee policy and legislation;

(3) this report be forwarded to the Honourable Lucienne Robillard, Minister of Citizenship and Immigration;

(4) Council encourage the Federal Government to conduct broad and public consultation on the proposed directions for the new immigration and refugee policy and legislation to ensure all relevant stakeholders have an opportunity for input; and

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

Council Reference/Background/History:

On January 6, 1999, the Honourable Lucienne Robillard, Minister of Citizenship and Immigration, announced the directions for Canada's new immigration and refugee policy and legislation in a document titled, "Building on a Strong Foundation for the 21st Century: New Directions for Immigration and Refugee Policy". She invited comments on the implementation of the policy and legislation proposals for consideration in developing a new legislation. Appendix A provides a summary of the document, "Building on a Strong Foundation for the 21st Century: New Directions for Immigration and Refugee Policy". This document is available upon request through the City Clerk's office.

The Minister's invitation provides an opportunity for the City of Toronto to reiterate the City's position on immigration and refugee policies and programs, and renew its proposal to the Federal Government that the City be included in formal consultation and collaboration on relevant policy issues.

The current City of Toronto's policies on immigrant and refugee settlement and integration are outlined in the recommendations on Immigrant Legislative Review from the Community and Neighbourhood Services Committee, and the Chief Administrative Officer's report to the Task Force on Community Access and Equity on the Urban Forum on Immigration and Refugee Issues. The Advisory Committee On Immigration and Refugee Issues, chaired by Councillor David Miller, has continued to identify and respond to immigration and refugee issues. The Advisory Committee has recommended that the immigration and refugee policies and programs of the City's former municipalities be fully integrated into the City's policy and programs.

Comments and/or Discussion and/or Justification:

Toronto has the largest immigrant population of any metropolitan area in Canada. According to the 1996 Census, approximately 48 percent of the Toronto's population was made up of immigrants and refugees. By the year 2001, foreign-born residents will comprise the majority of the City's population. Over 70,000 immigrants come to Toronto every year, and approximately 60 percent of the refugee claims in Ontario originate in Toronto. Newcomers have shaped the diverse social, cultural, political and economic landscape of Toronto. They have created a vibrant, thriving and dynamic community in the City. Further, as a result of declining birth rates, immigration is expected to be the main source of population growth in Toronto in the future. The City therefore has a fundamental stake in any changes that might be made to the legislation and policies regarding immigration and refugees.

The document on the new directions for immigration and refugee policy and legislation has some positive proposals, for example:

(1) separating the immigration program and refugee protection program in two distinct sections in the new Immigration Act;

(2) raising the age limit of a dependent child from under 19 years to under 22 years recognizing common-law and same-sex spouses for sponsorship programs through regulation; and

(3) allowing extended family members of refugees in the resettlement from abroad program to be processed together overseas to promote speedy family reunion.

However, the proposed directions fail to address a number of key issues raised by the City of Toronto:

(1) Formal consultation and collaboration:

The City of Toronto has requested, in its response to the Immigration Legislative Review, that any federal-provincial structure created should include the City as a participant, and the Federal Government should conduct formal consultations on significant policy developments with municipalities. The 1998 report of the Immigration Legislative Advisory Group commissioned by Citizenship and Immigration Canada also recommended the inclusion of municipalities in formal consultations on relevant policy issues.

The proposed changes commit the Federal Government to conduct regular and structured consultations with provincial and territorial governments. Municipalities are not included except as stakeholders along with non-governmental organizations and consultants. The City needs to reiterate its interest in being a full participant in these discussions.

(2) Cost recovery:

The document on new directions for immigration and refugee policy and legislation proposes that Citizenship and Immigration Canada undertake collection action against defaulting sponsors and share the proceeds with the province. However, this does not deal with the issue raised by the City with respect to reimbursing municipalities the cost of social assistance and emergency shelter for refugee claimants and immigrants who experience sponsorship breakdowns. Council should reiterate its position that the Federal Government's responsibility for these costs be included in the new legislation.

(3) Settlement renewal:

The document also does not provide any future directions on immigrant and refugee settlement. While the Federal Government is devolving settlement services to the provinces, it is essential that it establish and maintain clear accountability guidelines for settlement services and be committed to adequate funding and equitable access to settlement services. Funding cuts to the settlement service sector has in some instances resulted in a form of downloading as the City attempts to fill in the gaps.

(4) Right of landing fee:

While the document acknowledges the importance of reuniting families, it does not address the exceptional burden the right of landing fee (head tax) has imposed on low-income families and refugees, and the obstacle to family reunification it has caused.

(5) Access to trades and professions:

There is a very general statement on working with the provinces and professional associations on access to trades and professions.

(6) Undocumented convention refugees:

The document on new directions proposes a reduction in the waiting period from five to three years before the undocumented refugees can apply for landing. While this proposal is an improvement on the present policy, it does not address the issue of establishing other means of identification for the purpose of applying for permanent residence, such as affidavits. The delay in obtaining permanent resident status would prevent the refugees from accessing benefits available to landed immigrants and prolong their dependence on social assistance, which would have financial implications on the City.

(7) Inland refugee determination process and security measures:

The immigrant and refugee service sector has expressed concern about a few proposals in the inland refugee determination process and security measures. For instance, a 30-day time limit for making a refugee claim, with exception in "compelling circumstances" will make certain categories of refugee claimants, such as women fleeing domestic violence or sexual assault and people fleeing persecution based on sexual orientation, particularly vulnerable.

It is appropriate to forward these community concerns to the Advisory Committee on immigration and Refugee Issues for consideration in developing the submission to Citizenship and Immigration Canada.

Conclusion:

The City of Toronto, being the key destination for immigrants and refugees for Canada, is the municipality most affected by federal immigration and refugee policy and legislation. The document, "Building on a Strong Foundation for the 21st Century: New Directions for Immigration and Refugee Policy and Legislation", proposes significant changes to the existing immigration and refugee policy and legislation. It is important that the City take this opportunity to reiterate its position on immigration and refugee issues and request the Federal Government to formally consult with municipalities in developing the new legislation. Municipalities must deal with the impact of decisions made by other levels of government which affect the immigration settlement process at the local level. The City should also encourage the Federal government to consult broadly with immigrant and refugee service sector and community and business groups who play an essential role in the settlement and integration of immigrants and refugees.

Contact Name:

Rose Lee, Access and Equity Centre - 392-4991

Eric Gam, Social Development and Administration Division - 392-8238

Summary of Proposed New Directions for Immigration and Refugee Policy and Legislation, Citizenship and Immigration Canada, January 1999:

(1) Simplifying the Immigration Act:

The objectives of the Act will be updated and the Act will be redrafted in plain language and will clearly state the immigration program and refugee program in two distinct sections.

(2) Strengthening partnerships:

Consultations with provincial and territorial governments will be regularized and widened, while municipal governments will continue to be included in stakeholder consultations where appropriate.

(3) Strengthening family reunification:

The current age limit for a dependent child is increased from under 19 years to under 22 years.

(i) Older children who are financially dependent on their parents or dependent because of physical and mental disability are continued to be included as dependent children.

(ii) Spouses and dependent children can apply from within Canada under certain conditions if they have legal status.

(ii) The federal government proposes to discuss with provincial and territorial governments: a) possible reduction in the length of sponsorships for spouses and dependent children, and b) the possibility of removing inadmissibility on the basis of excessive demands on health and social services and spouses and dependent children.

(iv) The federal government will promote the principle that an adopted child and a biological child have the same rights.

(v) The definition of spouse is to be expanded to include common-law and same-sex spouses.

(vi) CIC's power is to be expanded to undertake collection action against defaulting spouses and to share the proceeds with the provinces.

(vii) Sponsorship by people in default of court-order obligation (alimony or child support) and people convicted of domestic violence are prohibited.

(4) Modernizing the selection for skilled workers and business immigrants. The selection system will:

(i) shift away from occupations in demand to sound and transferable skills sets;

(ii) add explicit requirements for education, language skills and significant business experience; and

(ii) require the origin of funds to be established.

There is also a general statement of commitment to access to trades and professions.

(5) Facilitating the entry of highly skilled temporary foreign workers and students:

(i) The case-by-case validation of foreign workers is to be replaced by the use of a "national validation letter".

(ii) Spouses of applicants will be authorized to accept any job offer in Canada.

(iii) Further measures are being explored to facilitate the entry of foreign students.

(6) Introducing transparent criteria for permanent residence status:

The residency requirement of six months in a year will be changed, and a secure identity card to be valid for five years will be introduced.

(7) Strengthening refugee protection:

The resettlement from abroad program would shift towards protection and away from ability to settle through such measures as:

(i) relaxing the requirement that refugees be able to settle within a year;

(ii) allowing extended family members to be processed together overseas to promote speedy family reunion;

(iii) working more closely with non-governmental organizations in identifying, pre-screening and resettling refugees;

(iv) ensuring the immediate entry into Canada of urgent protection cases;

(v) The Immigration and Refugee Board (IRB)will be retained;

(vi) the three existing layers for refugee determination---refugee status determination, post-determination risk review, and risk-related humanitarian review---will be reduced to one: a protection decision by the IRB;

(vii) there will be a 30-day time limit for making a claim subject to exceptions in compelling circumstances;

(viii) failed refugee claimants who return to Canada after 90 days and submit another protection claim would not have access to a protection hearing but would be examined under pre-removal risk assessment;

(ix) priority will be given to the processing of people who come from safe countries of origin and others whose claim is clearly related to reasons having nothing to do with a need for protection;

(x) the Minister can intervene in any case without seeking leave from the IRB;

(xi) the current legislation will be amended to allow the Minister, without seeking leave from the IRB, to select cases for vacation;

(xii) the waiting period for landing for undocumented convention refugees is proposed to be reduced from five to three years; and

(xiii) consideration will be given to measures to improve the recruitment of decision-makers on the IRB and increase the transparency in the selection process.

(8) Maintaining the safety of Canadian society:

(i) the interdiction of improperly documented people will be enhanced;

(ii) new classes of people inadmissible to Canada will be created;

(iii) measures against improperly documented arrivals will be increased. These measures will include removing restrictions on prosecuting people who aid and abet illegal migration and detaining claimants who refuse to cooperate in establishing their identity;

(iv) removal capacity would be enhanced through measures such as, limiting the circumstances under which a removal order may be stayed and transferring the power to issue a removal order to senior immigration officers in uncontested cases and straightforward criminal cases;

(v) there will be stiffer penalties for inadmissible people who repeatedly return to Canada without authorization, those who aid and abet persons in contravening the Immigration Act, and people who commit fraud or misrepresentation;

(vi) authority to exchange information with other countries on criminality and security issues would be enhanced, and provision would be made to enable access to the computer systems of transportation companies to facilitate the screening of passengers;

(vii) the government would consider measures to enable transportation companies to provide detention for people ordered removed;

(viii) Canada, together with the United Kingdom, the United States and Australia, is engaged in a process to determine which medical screening procedures are required to protect public health;

(9) Improving the effectiveness of the immigration appeal system:

(i) the Immigration Appeal Division is to be retained;

(ii) serious criminals will lose the right to appeal to the Immigration Appeal Division;

(iii) people who commit criminal offences while on a stay of removal would be removed;

(iv) the government will propose to introduce a requirement for leave to appeal visa decisions in the Federal Court;

(v) family class refusals continue to have the right to appeal to the Immigration Appeal Division, bur not refusals on financial grounds;

(10) Refocusing discretionary power:

(i) a range of measures to redefine the use of discretionary powers will be introduced, such as defining through regulations situations where humanitarian or compassionate grounds are generally approved;

(ii) unsuccessful refugee claimants will have access to the humanitarian or compassionate decision-making process only in the period immediately following a negative decision by the IRD; and

(iii) access to the humanitarian or compassionate applications will be denied to:

(i) war criminals and people who have committed crimes against humanity;

(ii) people who are a danger to national security;

(iii) members of criminal organizations;

(iv) members of government who engage in systematic or gross violations of human rights; and

(v) people convicted of serious crimes; and

(iv) Mechanisms other than the Minister's permit will be used for delegating discretionary authority.

(A copy of Clause No. 2 of Report No. 2 of The Community and Neighbourhood Services Committee, entitled "Immigration Legislative Review" and the attachments in thereto, attached to the foregoing report was forwarded to all Members of Council with the February 23, 1999, agenda of the Strategic Policies and Priorities Committee and a copy thereof is also on file in the office of the City Clerk.)

(City Council on March 2, 3 and 4, 1999, had before it, during consideration of the foregoing Clause, the following report (February 26, 1999) from the Commissioner of Community and Neighbourhood Services:

Purpose:

At the February 23, 1999 meeting of the Strategic Policies and Priorities Committee, a request was made for information on the cost of the City's immigration and refugee programs. This request was made as part of the committee's consideration of a report from the Commissioner of Community and Neighbourhood Services and the Executive Director of Human Resources and Amalgamation on the proposed directions of Canada's immigration and refugee policy and legislation. The report recommended the inclusion of the City of Toronto by the federal government in formal consultations and collaboration on relevant settlement and immigration policy issues.

Funding Sources, Financial Implications and Impact Statement:

It is estimated that the City of Toronto provides social assistance, emergency shelter, and public health services for immigrants and refugees at an approximate net cost of $30 million.

Recommendations:

It is recommended that:

(1) the Mayor be requested to arrange a meeting with the Honourable Lucienne Robillard, Federal Minister of Citizenship and Immigration, and the Honourable David Collenette, Federal Minister responsible for the GTA, to discuss these issues;

(2) the federal government be requested to reimburse the City of Toronto the municipal costs associated with the provision of social assistance, emergency shelter and public health services to immigrants and refugees; and

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

Council Reference/Background/History:

The City of Toronto is the key destination for immigrants refugees coming to Canada. Toronto receives 56% of all newcomers to Ontario and 30% of all newcomers to Canada. Approximately 60 percent of refugee claims in Ontario originate in Toronto. Newcomers have been fundamental in shaping the diverse social, cultural, political and economic landscape of Toronto. Considered to be one of the most multi-cultural cities in the world, Toronto realizes profound benefits from the ethno-racial communities which now call this city home.

The City of Toronto does not directly fund or deliver settlement services. The federal government has primary responsibility for settlement and immigration policy and funding. Some federal policies, particularly those which restrict access to settlement services or delay access to federal documentation place newcomers at greater risk of dependence on municipally delivered services including social assistance and emergency shelter.

The Province of Ontario at one time provided 100% funding of social assistance and emergency shelter costs for non-residents for the first year. Since January of 1998 this program has been cost-shared on an 80:20 basis with the City of Toronto.

Services for Immigrants and Refugees:

Newcomers to Canada require specific settlement assistance to help them adapt and integrate into Canadian society. This assistance includes: language training, interpretation and translation, job counseling, and orientation. The federal government has primary funding responsibility for these services, but it is the community-based settlement services sector which delivers the services at the local level. The 1997 report "Profile of a Changing World" by the Municipality of Metropolitan Toronto and the Social Planning Council reported that settlement services received the greatest funding cuts and were most at-risk of losing programs or services. This has placed tremendous strain on social agencies, municipalities and newcomers alike.

Eligibility and Access:

Newcomers to Canada receive different levels of government support depending on their immigration status. Landed immigrants enjoy all the rights of Canadian citizenship and have full access to government programs and services. Sponsored refugees are entitled to initial support from the government or from private sponsors and are eligible for federally-funded settlement services. Approximately 50 percent of refugees; however, arrive in the country without sponsorship requesting asylum.

Refugee claimants are not entitled to initial support from the federal government and are not eligible for settlement services. In addition, refugee claimants cannot access social assistance or health care until they have received federal documentation confirming their claim. This process takes up to six weeks, during which time refugee claimants may have only the emergency shelter system on which to rely. Federal policies which limit access to settlement services, or delay access to federal documentation, in effect download these service needs to the community-based sector, and the municipality.

Settlement Renewal Initiative:

In 1995, the federal government introduced the Settlement Renewal Initiative intended to devolve the management of settlement programs for newcomers to the provinces. Originally, the federal government hoped to complete negotiations and withdraw from direct administration and delivery by March 31, 1997. This time frame has been extended in Ontario because a federal-provincial agreement has not been reached.

Currently the federal government provides $67 million in base funding for settlement services in Ontario. This funding is directly allocated by the federal government to the community-based settlement services sector. For the past three years this amount has been enhanced by an additional $35 million. This additional funding has only been committed until the year 2,000. After that date, the status of the additional $35 million is unknown.

City Role:

The City of Toronto continues to support the principle that newcomers must have access to appropriate levels of support to settle, adapt, and integrate into all aspects of community life. This principle was formally adopted by the Municipality of Metropolitan Toronto in a policy framework which is still relevant today. The primary goals of that policy were to:

(a) support the settlement, adaptation and integration of immigrants and refugees into all aspects of community life;

• provide appropriate supports to facilitate in making the necessary adaptations and accommodations; and
• seek an equitable distribution of resources from other levels of government to Toronto to support these objectives.

It is this final goal which is particularly relevant to this report. As a key destination for newcomers to Canada, it is critical that the City of Toronto continue to provide supports and services to immigrants and refugees. The issue identified in this report is not whether these services should be provided, but which level of government has access to adequate resources to appropriately fund these services to best meet newcomer needs. In an effort to clarify the relative roles and responsibilities of the two levels of the government, the City of Toronto has endorsed the recommendations of the Legislative Advisory Review including:

• Social Assistance

It is estimated that in any given month approximately 8,000 social assistance cases are refugees. An additional estimated 6,000 cases are immigrants receiving social assistance because of sponsorship breakdown. The average cost of social assistance benefits per case in 1999 is $723.10. Based on this average, it is estimated that social assistance benefits to refugees total approximately $5.8 million on a monthly basis and $69.6 million on an annual basis. The municipal share of these costs are estimated at $13.9 million annually. Social assistance benefits to immigrants as the result of sponsorship breakdown total an estimated $4.3 million on a monthly basis and $52.1 million on an annual basis. The municipal share of these costs are estimated at $10.4 million on an annual basis.

The total annual municipal cost to providing social assistance to refugees and those who have experienced sponsorship breakdown is estimated at $24.3 million.

• Public Health Services

Public Health estimates that approximately 60 percent of children participating in the City of Toronto's dental program were born outside of Canada. It is estimated that up to half of those children are immigrants or refugees. The cost of providing services to immigrant or refugee children across the city is estimated at $1.9 million.

In addition, it is estimated that 90 percent of the 500 TB cases in Toronto occur in those who are foreign born and that 50 percent of active TB cases occur in the first 5 years after immigration. The current cost of Toronto's TB budget is $2.1 million. It is estimated that the cost of providing TB services for immigrants and refugees ranges from $1.1 million to $1.9 million annually.

The total cost of public health services for immigrants and refugees is estimated to range from $3 million to $3.8 million.

Conclusion:

Although the City of Toronto does not directly deliver settlement and immigration services, as the key destination for newcomers to Canada, it is the municipality most affected by settlement and immigration policy and funding. The City of Toronto continues to support the need for immigrants and refugees to access settlement and other services to help them successfully integrate into all aspects of Canadian life. In support of this goal, the City of Toronto has endorsed recommendations of the Legislative Advisory Review which pertain to municipalities: specifically that the federal government reimburse municipalities for the costs associated with providing social assistance, emergency shelter and other services. As a result this report provides an estimate of the municipal costs associated with providing services to immigrants and refugees.

Contact Name:

Karen Mann - 392-8334)

(City Council also had before it, during consideration of the foregoing Clause, the following communication (March 1, 1999) from Councillor David Miller, Chair, Advisory Committee on Immigration and Refugee Issues:

Recommendations:

The Advisory Committee on Immigration and Refugee Issues recommends:

(1) that City Council adopt the joint report (February 9, 1999) from the Commissioner of Community and Neighbourhood Services and the Executive Director of Human Resources;

(2) that City Council NOT strike out Items Nos. (6) and (7) appearing under the section entitled, "Comments and/or Discussion and/or Justification", as recommended by the Strategic Policies and Priorities Committee;

(3) that City Council request the Federal and Provincial governments to take action to implement strategies to eliminate barriers to access to trades and professions; and

(4) that City Council request the Federal government to consult on relevant policy issues with major cities in Canada that receive large numbers of immigrants and refugees, and the appropriate City staff also be requested to initiate consultations in this regard.

The Advisory Committee on Immigration and Refugee Issues reports, for the information of Council, having requested the Commissioner of Community and Neighbourhood Services and the Executive Director of Human Resources, to report to the Advisory Committee on undocumented individuals whose status is unclear with respect to being eligible for OHIP and Social Insurance Numbers, and children who are not attending school because of issues around status; and the report be prepared in consultation with school board, community health centres and other appropriate agencies.

Comments:

At its meeting held on March 1, 1999, the Advisory Committee on Immigration and Refugee Issues gave consideration to the joint report (February 9, 1999) from the Commissioner of Community and Neighbourhood Services and the Executive Director of Human Resources.

The Committee recommends to City Council adoption of the recommendations set out above.)

(City Council on April 13, 14 and 15, 1999, had before it, during consideration of the foregoing Clause, a communication (April 1, 1999) from Ratna Omidvar, Executive Director, Refugee and Immigrant Program, Maytree Foundation, submitting information with respect to the Maytree Foundation and advising that they will be pleased to work in partnership with the City to address the new directions for immigration and refugee policy and legislation.)

(Councillor Minnan-Wong, at the meeting of City Council on April 13, 14 and 15, 1999, declared his interest in the foregoing Clause, in that he is a practicing lawyer whose practice includes immigration law.)

(City Council on April 13, 14 and 15, 1999, adopted this Clause, without amendment.)

(City Council on March 2, 3 and 4, 1999, deferred consideration of this Clause to its next regular meeting to be held on April 13, 1999.)

The Strategic Policies and Priorities Committee recommends the adoption of the Recommendation of the Budget Committee embodied in the following communication (February 22, 1999) from the City Clerk:

Recommendation:

The Budget Committee on February 19, 1999, recommended to the Strategic Policies and Priorities Committee, and Council the adoption of the report (February 11, 1999) from the Commissioner of Community and Neighbourhood Services, as amended by Community and Neighbourhood Services Committee.

Background:

The Budget Committee on February 19, 1999, had before it a communication (February 11, 1999) from the City Clerk, advising that the Community and Neighbourhood Services Committee on February 11, 1999, recommended to the Budget Committee and Council the adoption of the report (ii) dated February 11, 1999, from the Commissioner of Community and Neighbourhood Services, subject to amending Recommendation No. (2) by deleting the word "only", so that such recommendation reads as follows:

"(2) the commitment by the Community and Neighbourhood Services Department to expand hostel services by adding smaller full-standard facilities and developing a range of harm reduction shelters be supported; and".

Recommendation:

The Community and Neighbourhood Services Committee on February 11, 1999, recommended to the Budget Committee and Council the adoption of the following report (ii) dated February 11, 1999, from the Commissioner of Community and Neighbourhood Services, subject to amending Recommendation No. (2) by deleting the word "only", so that such recommendation reads as follows:

"(2) the commitment by the Community and Neighbourhood Services Department to expand hostel services by adding smaller full-standard facilities and developing a range of harm reduction shelters be supported; and".

The Community and Neighbourhood Services Committee reports, for the information of the Budget Committee, having:

(1) supported the following Recommendation No. (3) of the Advisory Committee on Homeless and Socially Isolated Persons, contained in the aforementioned communication (iv) from Councillor Jack Layton:

"The Advisory Committee send a letter to the Medical Officer of Health to work with hostels to deal with the health and safety issues associated with the current overcrowded conditions in the hostel system (such as TB, scabies, lice).";

(2) referred to the Commissioner of Community and Neighbourhood Services, in consultation with Mayor Mel Lastman, communications (i) dated January 8, 1999, from the City Clerk and (iv) dated February 11, 1999, from Councillor Jack Layton, Don River, with a request that she report thereon to the Community and Neighbourhood Services Committee for its meeting on March 24, 1999;

(3) referred the following motion to the Commissioner of Community and Neighbourhood Services, in consultation with the Medical Officer of Health, with a request that she report thereon to the Community and Neighbourhood Services Committee for its meeting on March 24, 1999:

"That the expansion of hostel services should include the expansion of public health initiatives to reduce the spread of communicable diseases, in particular TB."; and

(4) directed that the Commissioner of Community and Neighbourhood Services be requested to develop the concept of "full-standard facility" guidelines and the implications of this definition for the program, and report thereon to the Community and Neighbourhood Services Committee.

Background:

(i) (January 19, 1999) from the City Clerk advising that the Council Strategy Committee for People Without Homes on January 18, 1999, had before it a communication (January 8, 1999) from Councillor Jack Layton, Co-Chair, Advisory Committee on Homeless and Socially Isolated Persons, recommending that:

(1) the City of Toronto adopt a no "No Room at the Inn" policy with respect to the provision of emergency shelter thereby ensuring that no one will be turned away from a hostel in Toronto due to lack of space;

(2) the City of Toronto make a commitment to replace all emergency shelter beds expected to be lost in the Spring of 1999 due to the closure of temporary winter hostels and renovations scheduled for Seaton House resulting in a loss of 150 beds; and

(3) the Shelter, Housing and Support Division report on the development of standardized rules for hostels;

and that the Council Strategy Committee recommended that:

(1) the Community and Neighbourhood Services Committee be requested to adopt Recommendation No. (1), as adopted by the Advisory Committee on Homeless and Socially Isolated Persons, at its meeting of December 18, 1998, regarding a no "No Room at the Inn" policy; and

(2) the Commissioner of Community and Neighbourhood Services be requested to review Recommendations No. (2) and (3), as adopted by the Advisory Committee on Homeless and Socially Isolated Persons, and address these recommendations in her report on spring hostel capacity and standard rules as requested by the Community and Neighbourhood Services Committee, with a copy of this report to be sent to the Council Strategy Committee for People Without Homes for information;

(ii) (February 11, 1999) from the Commissioner of Community and Neighbourhood Services providing a current update on the occupancy levels in the hostel system; and recommending that:

(1) the existing contract with the Salvation Army, for the Lighthouse shelter at 37 Dundas Street, East, be increased by 30 beds on Monday, Tuesday, Wednesday and Thursday nights effective February 15, 1999 to April 15, 1999;

(2) the commitment by the Community and Neighbourhood Services Department to expand hostel services only by adding smaller full-standard facilities and developing a range of harm reduction shelters be supported; and

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

(iii) graphs outlining Shelter Services for Single Adults and Youth from January 1-31, 1999, and from February 1-9, 1999, submitted by the Shelter, Housing and Support Division; and

(iv) (February 11, 1999) from Councillor Jack Layton, Don River, advising that the Advisory Committee on Homeless and Socially Isolated Persons on January 22, 1999, passed the following motions:

"(2) That the Mayor be asked to:

(a) convene the Emergency Planning Committee to develop a plan to establish permanent emergency shelters in both the east and west end of the City;

(b) declare a state of emergency in the City of Toronto in response to the homeless crisis; and

(c) open the armouries immediately as a short-term response to the current capacity shortage in the hostel system until such time as the new east and west sites are opened.

(3) The Advisory Committee send a letter to the Medical Officer of Health to work with hostels to deal with the health and safety issues associated with the current overcrowded conditions in the hostel system (such as TB, scabies, lice).

(4) That City officials meet with representatives of Oxfam, the Red Cross, Doctors without Borders and the Toronto Disaster Relief Committee to consult on emergency relief strategies.

The following persons appeared before the Community and Neighbourhood Services Committee in connection with the foregoing matter:

- Ms. Kira Heineck, Toronto Disaster Relief Committee, and submitted a petition, headed "House the Homeless! Open up the Armouries!", with approximately 500 signatures;

- Ms. Cathy Crowe, Queen West Community Health Centre, and submitted a brief from the Toronto Disaster Relief Committee, headed "Why Open The Armouries?";

- Ms. Denise Toulouse, Anishnawbe Health Toronto;

- Mr. Gaetan Heroux;

- Mr. Michael Skidd; and

- Councillor Jack Layton, Co-Chair, Advisory Committee on Homeless and Socially Isolated Persons.

Purpose:

This report provides the Community and Neighbourhood Services Committee with a current update on the occupancy levels in the hostel system and recommendations for meeting needs during the balance of the winter period.

Funding Sources, Financial Implications and Impact Statement:

The costs associated with this report are part of the normal expense of providing hostel services, and included in the Department's 1999 budget request.

Recommendations:

It is recommended that:

(1) the existing contract with the Salvation Army, for the Lighthouse shelter at 37 Dundas Street, East, be increased by 30 beds on Monday, Tuesday, Wednesday and Thursday nights effective February 15, 1999 to April 15, 1999;

(2) the commitment by the Department to expand hostel services only by adding smaller full-standard facilities and developing a range of harm reduction shelters be supported; and

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

Council Reference/Background/History:

The Department was asked by Committee to provide regular updates on hostel occupancy. This report is current as of the occupancy data up to and including Monday, February 8, 1999.

Comments and/or Discussion and/or Justification:

This report addresses the specific concerns around adults and youth.

The actual figures for Monday, February 8, 1999, show the following:

It is staff opinion that the spare capacity for youth and for adult women is adequate. The occupancy numbers do not fluctuate very much from day to day, and relatively few women or youth are living rough (outside). Shelter serving these populations are not expressing serious bed shortages.

Therefore, our focus should be on adult men. Traditionally, this is the largest group of hostel residents and the group most likely to remain outside during cold weather. While the vacancy rate on Monday night (February 8) was still about 3.9 percent, staff feel this is too low and that more reserve is needed.

In particular, we are concerned about the adequacy of services during the days of Monday through Thursday when the Out of the Cold churches offer fewer spaces. Weekend capacity (Friday, Saturday and Sunday) is not a problem.

In summary, our concerns remain focused on adult men and for the periods of Monday through Thursday nights.

Accordingly, we have renegotiated the hostel contract with the Salvation Army Lighthouse to add another 30 new beds for men for those nights. This agreement is for the balance of the winter season.

Staff are preparing a further report on hostel needs for the spring and summer period. That report will be before the Community and Neighbourhood Services Committee at its next regular meeting.

Department's Focus in Expanding Hostels:

To the extent that more new hostels are needed in the future, the Department will continue to focus on expansion using two models. First, we will support smaller facilities that meet full hostel standards in terms of space, amenities, staffing and services. Second, we will support programs that use a harm reduction approach that reaches the very hardest to serve. This direction was also recommended by the Mayor's Homelessness Action Task Force.

The Department is opposed to the extended use of large facilities such as the armouries that do not meet hostel standards and that do not help residents with their longer term needs. That approach to service is regressive and does not reduce homelessness.

Role of the Red Cross:

Staff are negotiating a formal agreement with the Red Cross to provide emergency shelter for sudden emergencies. The recent operation of the Moss Park Armoury for two days during the severe snow storm is a good example of this role. This temporary use of the armouries is appropriate and supported by both the Red Cross and National Defence.

Included in this agreement is the purchase of the necessary supplies and equipment for a complete 150-bed shelter which can be stored, and put into service with just a few hours' notice. With this agreement, we will be able to respond to any sudden emergencies related to events such as severe weather, rooming-house and apartment fires, loss of heat and power, or other evacuations.

Conclusions:

The extra 30 new beds for men will be sufficient for the balance of this cold season. Future expansion of the hostel system must be progressive and provide appropriate help to the homeless. The formal agreement being negotiated with the Red Cross provides the capability to respond to sudden emergencies and is needed in a large urban centre. This also makes the best use of the armouries.

Contact Name:

John Jagt, Director of Hostel Services

Tel: 392-5358/Fax: 392-8758

At its meeting on January 22, 1999, the Advisory Committee on Homeless and Socially Isolated Persons passed the following motions:

"(2) That the Mayor be asked to:

(a) convene the Emergency Planning Committee to develop a plan to establish permanent emergency shelters in both the east and west end of the city;

(b) declare a state of emergency in the City of Toronto in response to the homeless crisis;

(c) open the armouries immediately as a short-term response to the current capacity shortage in the hostel system until such time as the new east and west sites are opened;

(3) the Advisory Committee send a letter to the Medical Officer of Health to work with hostels to deal with the health and safety issues associated with the current overcrowded conditions in the hostel system (such as TB, scabies, lice); and

(4) that City officials meet with representatives of Oxfam, the Red Cross, Doctors without Boarders and the Toronto Disaster Relief Committee to consult on emergency relief strategies."

The Council Strategy Committee for People Without Homes at its meeting of January 18, 1999, had before it the attached communication dated January 8, 1999, from Councillor Layton, Co-Chair, Advisory Committee on Homeless and Socially Isolated Persons, forwarding the noted motion, as approved at their meeting of December 18, 1998.

The Council Strategy Committee for People Without Homes adopted the following recommendations and transmits the same for your consideration:

It is recommended that:

(1) the Community and Neighbourhood Services Committee be requested to adopt Recommendation No. (1) , as adopted by the Advisory Committee on Homeless and Socially Isolated Persons, at its meeting of December 18, 1998, regarding a no "No Room at the Inn" policy; and

(2) the Commissioner of Community and Neighbourhood Services be requested to review Recommendations No. (2) and (3), as adopted by the Advisory Committee on Homeless and Socially Isolated Persons at its meeting of December 18, 1998, and address these recommendations in her report on spring hostel capacity and standard rules as requested by Community and Neighbourhood Services Committee, with a copy of this report to be sent to the Council Strategy Committee for People Without Homes for information.

(City Council on April 13, 14 and 15, 1999, adopted the following recommendations:

"It is recommended that:

(a) the report dated April 13, 1999, from Mayor Mel Lastman, be adopted, subject to amending Recommendation No. (1) by adding thereto the words 'for a three-year term and/or until their successors are appointed', and appointing the slate of citizen nominees embodied in the confidential report dated April 13, 1999, from Mayor Lastman, so that the recommendations embodied therein shall now read as follows:

'It is recommended that:

(1) Council consider at its in-camera session April 13, 1999, the slate of citizen nominees to be appointed to the Toronto Hydro-Electric Commission as of April 19, 1999, for a three-year term and/or until their successors are appointed;

(2) a reception be held to thank the current citizen members of the Commission for their dedicated service;

(3) the following citizen slate be approved to serve on the Board of Directors of the successor corporation to the Toronto Hydro-Electric Commission when it is incorporated by the City:

Ms. Clare R. Copeland (Chair)

Mr. Peter Y. Atkinson

Mr. David L. Bumstead

Dr. Ruth M. Corbin

Mr. L. Ross Cullingworth

Dr. Frank Frantisak

Mr. Timothy J. Millard

Mr. David M. Williams;

(4) annual remuneration for the citizen appointees be set at $75,000.00 for the Chair and $12,500.00, plus $1,000.00 per Board meeting, for other Board Members;

(5) the Chief Administrative Officer brief the new Board Members on the status of the incorporation process and work with them in developing the articles of incorporation, the transfer by-law and the shareholder directive for approval by Council; and

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

(b) the Board of Directors of the Toronto Hydro-Electric Commission, the Chief Administrative Officer and other appropriate City officials be requested to arrange the submission of regular reports to Council, through the Strategic Policies and Priorities Committee, on the shareholder agreement, its evolving principles and its final form, in a timely way.")

(City Council on March 2, 3 and 4, 1999, deferred consideration of this Clause to its next regular meeting to be held on April 13, 1999.)

The Strategic Policies and Priorities Committee reports having concurred with the Recommendation embodied in the following report (February 19, 1999) from Mayor Mel Lastman:

Purpose:

To update the Strategic Policies and Priorities Committee on the status of the nomination process for the Board of Directors for the new Toronto Hydro.

Recommendation:

It is recommended that the nominations for the Board of Directors for the new Toronto Hydro Corporation be submitted directly to Council for consideration at its meeting of March 2, 1999.

Council Reference:

At its meeting on December 16 and 17, 1998, Council appointed a Steering Committee to work with the search consultant to develop a slate of nominees for the Board of Directors for the new Toronto Hydro Corporation. The Strategic Policies and Priorities Committee had recommended that the issue be considered by Council at its meeting of March 2, 1999.

Conclusions:

The Steering Committee is in the final stages of considering citizen nominees. In order to give full consideration to this important issue for the City, the Committee will be prepared to forward its recommendation directly to Council for consideration in camera at the March 2, 1999, meeting.

(City Council on April 13, 14 and 15, 1999, had before it during consideration of the foregoing Clause, the following report (April 13, 1999) from Mayor Lastman:

Purpose:

To recommend, on behalf of the Steering Committee appointed by Council, the slate of citizens for appointment to the Board of Directors of the Toronto Hydro-Electric Corporation.

Financial Implications:

There are no financial implications for the City arising from the recommendations of this report.

Recommendations:

It is recommended that:

(1) Council consider in its in camera session April 13, 1999 the slate of citizen nominees to be appointed to the Toronto Hydro- Electric Commission as of April 19, 1999;

(2) a reception be held to thank the current citizen members of the Commission for their dedicated service;

(3) the citizen slate be approved to serve on the Board of Directors of the successor corporation to the Toronto Hydro-Electric Commission when it is incorporated by the City;

(4) annual remuneration for the citizen appointees be set at $75,000 for the Chair and $12,500 plus $1,000 per board meeting for other board members;

(5) the City Chief Administrative Officer brief the new board members on the status of the incorporation process and work with them in developing the articles of incorporation, the transfer by-law, and the shareholder directive for approval by Council; and

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

Council Reference:

On November 7, 1998, the Electricity Competition Act (Bill 35) was enacted, requiring that municipal electric utilities across the province become incorporated. At its meeting of December 16 and 17, 1998, Council approved my recommendation that the new Board be comprised of eight citizens, the Mayor or designate, and two Councillors. Council also authorized a Steering Committee to nominate the slate of citizens for appointment by Council with the assistance of a search consultant engaged by the CAO. The Steering Committee is comprised of the Mayor and the three Councillors serving on the current Commission - Councillors Disero, Layton and Mahood. This report presents the citizen nominations selected by the Steering Committee. Council requested that the nominees be brought forward for consideration by Council at its meeting of March 2, 1999. Consideration of the issue was deferred to April 13, 1999 Council meeting.

Comments:

Selection Process:

As directed, the City CAO issued a request for proposals to assist the City in the search for qualified citizens to serve on the Board of Directors for the new Toronto Hydro-Electric Corporation. The Caldwell Partners were selected from five responses based on their related experience, ability to meet the timeline, and price. Caldwell Partners is a world-renowned executive search company and Canada's largest with offices across Canada. It has broad experience in assisting with the selection of boards of directors in both the private and public sector and more specifically in de-regulated industries and utilities.

Caldwell Partners met with the Steering Committee to agree on the process to be used, the qualifications being sought, remuneration of directors, and time commitments needed. Caldwell developed a long list of possible candidates and matched candidates against criteria to provide a list of 16 qualified and available candidates. Based on qualifications, experience, and personal interviews, the Steering Committee unanimously agreed on the nomination for Chair and the seven other citizen nominees.

Qualifications:

The Steering Committee set out a broad range of qualifications and experience expected of board members and selected individuals to cover the entire range of criteria.

The slate of nominees bring a wealth of business, governance, utility, environmental, and management acumen and experience. They are individually and collectively experienced board members and well equipped to lead the utility into a new era of change in the market and in the way the company will do business in the future to serve its customers well and protect the City's investment.

Remuneration:

Part of the task of the Caldwell Partners was to recommend an appropriate level of remuneration for citizen members of the Board of Directors. Unlike agencies of the City, the new Hydro Corporation will be a corporation with share capital incorporated under the Ontario Business Corporations Act. The "wires" business will remain a regulated monopoly, but the company may enter the competitive market to compete with private sector companies in both the retail and generation businesses as well as supporting and related consumer services. Remuneration of its directors must therefore be competitive with similar private sector corporations in order to attract the best.

Caldwell Partners conducted a comparative study of remuneration for directors in this type of environment and recommended a mid-range level of remuneration. It was determined that the Chair of the new corporation would be required to commit 7 to 10 days per month during the initial term to lead the company through the changes necessary. Remuneration of $75,000 was recommended by the Steering Committee for the Chair. Other directors would be required to commit approximately 2 days per month for board and committee business. It is common practice to provide an annual remuneration and a per meeting allowance for formal board meetings. Annual base remuneration of $12,500 plus a per meeting allowance of $1,000 is recommended. It is anticipated that approximately 10 board meetings per year will be required.

Existing Commission:

Under Bill 35, Toronto Hydro must incorporate before the end of two years from the date the Bill was enacted. Changes in the environment and market are happening quickly and Toronto Hydro must be ready to meet these new challenges. Preparation is underway to incorporate and structure the new enterprise as quickly as possible, but the regulations which will govern this business and the licenses which will be required are not yet available from the Province. It is recommended that the new citizen members be appointed to the existing Toronto Hydro-Electric Commission to assist the City in implementing these changes and that the same members be appointed to the new company when it is incorporated.

The City of Toronto Act 1997 defined the composition of the interim Commission as the six Chairs of the former local utilities which were amalgamated. These individuals have collectively served for many years and have led the Commission through the difficult task of amalgamation. It is recommended that a reception be held to thank the Commissioners for their dedicated service to the City.

Incorporation Process:

The City of Toronto currently owns the assets of the Toronto Hydro-Electric Commission and will be the sole shareholder of the new corporation. At the time of incorporation, the City will transfer to the new corporation, through a transfer by-law, the assets necessary for the new corporation to carry on business. At the same time, the City is required to file Articles of Incorporation, appoint the Board of Directors and may provide direction to the new corporation through a shareholder direction.

The City CAO was directed to develop the documents required for Council approval and for several months has been leading a joint staff working group of City and Hydro staff and their financial and legal advisors. A report on these issues will be brought forward to Council in the near future. It is recommended that the City CAO work with the newly appointed Commission in developing the documents necessary to incorporate the new company and establish its relationship with the City.

Conclusions:

This report presents the nominations of the Steering Committee for citizen members of the Board of Directors of Toronto Hydro. It is recommended that these members be appointed to the current Commission until incorporation required by Bill 35 and then become the citizen directors of the new Toronto Hydro-Electric Corporation.)

(A copy of the confidential report (April 13, 1999) from Mayor Lastman, which was appended to the foregoing report, is to remain confidential in accordance with the provisions of the Municipal Act.)

Respectfully submitted,

MEL LASTMAN,

Chair

Toronto, February 23, 1999

(Report No. 6 of The Strategic Policies and Priorities Committee, including additions thereto, was adopted, as amended, by City Council on April 13, 14 and 15, 1999.)