In response to requests from both the Government Management Committee and the Audit Committee, this report provides information on the structure and mandate of the City’s five pre-OMERS pension plans and its boards, the City’s responsibility for the plans and potential assistance that could be provided by the Ontario Municipal Employees Retirement System (OMERS) or the Ontario Teachers’ Pension Plan with respect to these pension plans.

Additionally, this report outlines how the recent equity market conditions impacted the City-sponsored pension plans, the TTC-sponsored plan and OMERS, and forecasts funding requirements. 

There are no financial implications arising from this report.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

To provide information on property tax accounts with outstanding receivables of $500,000 or more as at December 31, 2009, and to report on the total outstanding tax receivables as at December 31, 2009.

This report contains two attachments - Attachment 1 lists properties with tax arrears of $500,000 or more, and Attachment 2 identifies the tax receivables as at December 31, 2009.

There are no financial implications arising from this report.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Treasurer recommends that:

1.         City Council receive the “Report on the Actuarial Valuation for Funding Purposes as at December 31st, 2009” prepared by Mercer Human Resource Consulting with respect to the Metropolitan Toronto Pension Plan.

2.         City Council approve a cost-of-living increase effective January 1, 2010, of 0.30% in pension benefits, to pensioners on benefit for more than one year and a proportionate increase of 0.025% for each month of pension payment made in 2009 for pensioners who retired during 2009, at an estimated actuarial cost of $1.6 million on a solvency basis which will be borne by the Plan and charged to its Indexation Reserve Account.

3.         By-law No. 15-92 of the former Metropolitan Corporation governing the Metropolitan Toronto Pension Plan as amended to date be further amended accordingly and authority be granted to introduce the necessary bill in Council

4.         City Council authorize the appropriate City officials to take the necessary action to give effect to the foregoing recommendations.

This report submits the Actuarial Valuation as at December 31, 2009 for the Metropolitan Toronto Pension Plan (“the Plan”) and provides recommendations for a cost-of-living increase to pensioners effective January 1, 2010.

The 2009 Valuation sets forth the financial position of the Plan for the year ended December 31, 2009 on both a going concern and solvency basis, outlines recommendations for a cost-of-living increase of 0.30% for pensioners effective January 1, 2010, and confirms that the Plan does not require any special payments by the City of Toronto.

The estimated cost of the recommended increase in pensioner benefits on a solvency basis will be $1.6 million and on a going-concern basis will be $1.5 million.  The increase will be charged to the Plan’s Indexation Reserve Account without any contribution by the City.  The balance of the Indexation Reserve Account as at December 31, 2009 was $45.7 million and will be reduced to $44 million if the increase is implemented.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Board of Trustees of the Metropolitan Toronto Pension Plan recommends to the Government Management Committee that City Council approve that an increase of 0.30% be granted on pensions, effective January 1, 2010, to pensioners on benefit for more than one year and a proportionate increase of 0.025% for each month of pension payment made in 2009 be granted for pensioners who retired during 2009, for which the total estimated cost is $1,494,000. on the going-concern basis, or $1,598,000. on the solvency basis.

The Board of Trustees of the Metropolitan Toronto Pension Plan on April 30, 2010, considered a communication (April 15, 2010) from Anil Narale, Principal, Mercer, forwarding the Actuarial Valuation Report (April 2010) for the Metropolitan Toronto Pension Plan prepared as at December 31, 2009.

Anil Narale, Principal, Mercer, gave a presentation to the Board of Trustees on the Actuarial Valuation Report.

The Treasurer recommends that:

1.         City Council receive the report on the “Actuarial Valuation for Funding Purposes as at December 31, 2009” prepared by Mercer Human Resource Consulting with respect to The Corporation of the City of York Employee Pension Plan.

2.         City Council approve a Non-Program Operating Budget increase of $404,772 gross and $0 net resulting in total contribution of $1,471,104 gross and $0 net funded from the Employee/Retiree Benefits Reserve Fund in order to fund the additional going-concern unfunded liability and the additional solvency deficiency which developed in 2009.

3.         City Council approve a Non-Program Operating Budget increase of $2,691 gross and $0 net funded from the Employee/Retiree Benefits Reserve Fund for interest payments to the Plan which are required because the increase in special payments will not be processed until July 1, 2010;

4.         City Council approve special annual payments to the Plan of $1,471,104 per year for 2011-2012 and $908,462 for 2013 and $404,772 for 2014 for the going-concern unfunded liability and the solvency deficiency.

5.         Government Management Committee forward this report to Executive Committee for authorization to adjust the 2010 Non-Program Operating Budget accordingly.

6.         City Council authorize the appropriate City officials to take the necessary action to give effect to the foregoing recommendations.

This report submits the Actuarial Valuation as at December 31, 2009 for the Corporation of the City of York Employee Pension Plan (the Plan) and requests additional funding in the form of special annual payments to the Plan as required under Ontario pension legislation with respect to the solvency and going-concern funding deficiencies. 

The 2009 Valuation sets forth the financial position of the Plan for the year ended December 31, 2009 on both a going concern and solvency basis.  The report outlines both a going-concern unfunded liability for the Plan and a solvency deficiency, and provides an amortization schedule of payments required to eliminate the unfunded liability within the mandatory fifteen (15) years and the deficiency within the mandatory five (5) years.  As a result of the financial position of the Plan, staff are recommending that no cost-of-living increase be provided to pensioners in 2010.

As a result of the Actuarial Valuations for 2008 and previous years, the City of Toronto was required to make special annual payments to the Plan in the amount of $3,500,841 for 2009 and $1,066,332 in 2010.

The 2009 Actuarial Valuation reveals that the City is required to continue to make special payments as required under the Pension Benefits Act (PBA), because of the solvency and going-concern positions of the Plan.  As a result, the City of Toronto is required to make special payments for 2010 to a minimum of $1,473,795, which includes the required interest.  Interest is owing because the increase in special payments for 2010 did not begin on January 1; it has been calculated using a rate of 4.625%, which is the annuity rate used for the solvency valuation, and will amount to $2,691 as at July 1^st, 2010.

Funding for these special annual payments will come from the Employee/Retiree Benefits Reserve Fund.  For 2010, $1,066,332 has been budgeted from this Reserve.  Therefore, there is an additional 2010 budget of $407,463 required as a result of the new annual special payment and interest requirements resulting from the 2009 Actuarial Valuation.  Through this report, staff is asking Council for authorization to adjust the 2010 Non-Program Operating Budget accordingly.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact.

The City of York Employee Pension Plan Committee recommends to the Government Management Committee that City Council adopt the following recommendations contained in the Recommendations Section of the report (April 2010) from Anil Narale, Principal, Mercer (Canada) Limited:

“It is recommended that:

1.         No post-retirement adjustment be made as at July 1, 2010.

2.         The City contribute from January 1, 2010, at the rate of $122,592 per month in respect of the unfunded liability and solvency deficiency, until revised by a subsequent valuation report.”

The City of York Employee Pension Plan Committee on April 22, 2010, considered a communication (April 12, 2010) from Anil Narale, Principal, Mercer (Canada) Limited, forwarding the report (April 2010) entitled “Corporation of the City of York Employee Pension Plan - Actuarial Valuation for Funding Purposes as at December 31, 2009”, and recommending that the Committee approve the report for submission to City Council so that the report can be filed with the Canada Revenue Agency and the Financial Services Commission of Ontario.

Anil Narale, Mercer (Canada) Limited, gave a presentation to the Committee.

The Treasurer recommends that:

1.         City Council receive the “Actuarial Valuation Report as at December 31, 2009” prepared by Buck Consultants Ltd. with respect to the Toronto Civic Employees’ Pension and Benefit Fund.

2.         City Council approve, effective January 1, 2010,  a cost-of-living increase of 0.29% in pension benefits to pensioners of the Toronto Civic Employees’ Pension and Benefit Fund at an estimated actuarial cost of $0.9 million on a solvency basis which will be borne by the Fund.

3.         By-Law No. 380-74 of the former City of Toronto governing the Toronto Civic Employees’ Pension and Benefit Fund as amended to date be further amended accordingly and authority be granted to introduce the necessary bill in Council.

4.         City Council authorize the appropriate City officials to take the necessary action to give effect to the foregoing recommendations.

This report submits the Actuarial Valuation as at December 31, 2009 for the Toronto Civic Employees’ Pension and Benefit Fund (the Fund) and provides recommendations for a cost-of-living increase of 0.29% to pensioners effective January 1, 2010.

The 2009 Valuation sets forth the financial position of the Fund for the year ended December 31, 2009 on both a going concern and solvency basis, and confirms that the Fund does not require any special payments by the City of Toronto.

The estimated actuarial cost of the recommended 0.29% cost-of-living increase is $0.8 million on a going-concern basis and $0.9 million on a solvency basis.  This increase is payable from the assets of the fund and would not create any funding shortfall or financial difficulty for the Fund.

As at December 31, 2009, the Fund had a smoothed going-concern surplus of $139.6 million and an unsmoothed solvency surplus of $68.7 million.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Toronto Civic Employees’ Pension Committee on April 14, 2010, considered a report (March 2010) entitled “Toronto Civic Employees’ Pension and Benefit Fund Actuarial Valuation Report as of December 31, 2009”, submitted by Cynthia L. Rynne, Consulting Actuary, Buck Consultants, who gave a presentation thereon and answered Members’ questions, and

unanimously:

1.         approved the Valuation Report; and

2.         directed the Director, Pension, Payroll and Employee Benefits to include in her report to the Government Management Committee submitting the Valuation Report a request that, in view of the Fund's actuarial surpluses, City Council grant to those in receipt of pensions from the Fund as of January 1, 2010, a 0.29% Consumer Price Index increase even though no such increase is automatically applied through the Fund's governing by-law.

The Committee held discussions regarding the CPI Increase for 2010.

The Treasurer recommends that:

1.         City Council receives the “Report on the Actuarial Valuation for Funding Purposes as at December 31, 2009” prepared by Mercer Human Resource Consulting with respect to the Metropolitan Toronto Police Benefit Fund.

2.         City Council approve a Non-Program Operating Budget increase of $4,983,600 gross and $0 net resulting in total contribution of $9,637,200 gross and $0 net funded from the Employee/Retiree Benefits Reserve Fund beginning on July 1, 2010 in order to fund the solvency deficiency of the Plan on the basis of the 2009 Actuarial Valuation.

3.         City Council approve a Non-Program Operating Budget increase of $33,129 gross and $0 net funded from the Employee/Retiree Benefits Reserve Fund for interest payments which are required as the increase in special payments will not be processed until July 1, 2010.

4.         City Council approve special annual payments to the Fund in the amount of $9,637,200 for the solvency deficiency in each of the years 2011-2013 and $4,983,600 for 2014.

5.         City Council confirm that given the difficult financial position of the Fund,  the temporary supplementary pension recommended by the Board of Trustees of the Metropolitan Toronto Police Benefit Fund not be approved.

6.         City Council advise the Metropolitan Toronto Police Benefit Fund accordingly.

7.         Government Management Committee forward this report to the Executive Committee to adjust the 2010 Non-Program Operating Budget accordingly.

8.         City Council authorize the appropriate City officials to take the necessary action to give effect to the foregoing recommendations.

This report submits the Actuarial Valuation as at December 31, 2009 for the Metropolitan Toronto Police Benefit Fund (MTPBF) and requests additional funding in the form of special annual payments as required under Ontario pension legislation when a plan has a “solvency deficiency”.

The 2009 Valuation sets forth the financial position of the Benefit Fund for the year ended December 31, 2009 on both a going concern and solvency basis, outlines its solvency deficiency at that date, provides an amortization schedule for eliminating the deficiency within the mandatory five years and recommends no cost-of-living increase for pensioners for 2010.

As a result of the 2008 Actuarial Valuation and previous valuations, the City of Toronto was required to make special annual payments to the Benefit Fund in the amount of $2,416,200 for 2008 and $5,467,722 in 2009.

The 2009 Actuarial Valuation shows deterioration in the solvency position of the Benefit Fund.  As a result, the City of Toronto is required to increase the special payments for 2010 to a minimum of $9,670,329, which includes required interest.  Interest is owed because the increase in special payments for 2010 did not begin on January 1; it has been calculated using a rate of 4.625%, which is the discount rate used for the solvency valuation, and will amount to $33,129 as at July 1^st, 2010 .

Funding for these special annual payments will come from the Employee/Retiree Benefits Reserve Fund.  For 2010, $4,653,600 has been budgeted from this Reserve.  Therefore, there is an additional 2010 budget of $5,016,729 required as a result of the new annual special and interest payment requirements resulting from the 2009 Actuarial Valuation.  Through this report, staff is asking Council for authorization to adjust the 2010 Non-Program Operating Budget accordingly.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Board of Trustees of the Metropolitan Toronto Police Benefit Fund recommends to the Government Management Committee that City Council endorse the following proposal with respect to the 2009 Actuarial Valuation as at December 31, 2009:

1.         An amount of $750,000 be allocated to provide a Temporary Supplementary Pension (TSP) to certain pensioners in the Benefit Fund.

2.         The TSP be provided to those pensioners who are receiving a pension of less than $60 per month (or $720 per year) per year of credited service (such service limited to 30 years).

3.         The TSP not increase a pensioner's pension to an amount higher than that specified in #2.

4.         The TSP be paid for a period of one year, commencing from July 1, 2010 and ending on June 1, 2011.

5.         The TSP be calculated as $1 per month per year of credited service (such service not to exceed 30 years).

6.         The TSP for the surviving spouses be based on 66.67% of the amounts stated above.

7.         The amounts stated in #2, #3 or #5 above be adjusted, based on actuary's advice, to ensure that the total cost of the upgrade is equal to the amount stated in #1 above.

8.         The one time supplementary benefit be calculated from April 1, 2010 to March 31, 2011.

9.         The Metropolitan Toronto Police Benefit Fund Trustees may review the continuation of the supplement on receipt of the 2010 Actuarial Report to make a further recommendation if necessary.

The Board of Trustees of the Metropolitan Toronto Police Benefit Fund on April 30, 2010, considered a communication (April 15, 2010) from Anil Narale, Principal, Mercer, forwarding the Actuarial Valuation Report (April 2010) for the Metropolitan Toronto Police Benefit Fund prepared as at December 31, 2009.

The Board also considered a Resolution (April 30, 2010) submitted by Board Trustee Art Lymer, recommending that the Trustees of the Metropolitan Toronto Police Benefit Fund request that members of Toronto City Council give consideration to the proposal outlined in his Resolution.

Anil Narale, Principal, Mercer, gave a presentation to the Board of Trustees on the Actuarial Valuation Report as at December 31, 2009.    Frank Dekeyser from Mercer was also in attendance.

The Treasurer recommends that:

1.         City Council receive the “Actuarial Valuation Report as at December 31, 2009” prepared by Buck Consultants Ltd. with respect to the Toronto Fire Department Superannuation and Benefit Fund.

2.         City Council approve, effective January 1, 2010, a cost-of-living increase of 0.29% in pension benefits to pensioners of the Toronto Fire Department Superannuation and Benefit Fund at an estimated actuarial cost of $0.8 million on a solvency basis which will be borne by the Benefit Fund.

3.         By-law No. 10649 of the former City of Toronto governing the Toronto Fire Department Superannuation and Benefit Fund as amended, be further amended accordingly and authority be granted to introduce the necessary bill in Council.

4.         City Council authorize the appropriate City officials to take the necessary action to give effect to the foregoing recommendations.

This report submits the Actuarial Valuation as at December 31, 2009 for the Toronto Fire Department Superannuation and Benefit Fund (the Benefit Fund) and provides recommendations for a 0.29% cost-of-living increase to pensioners effective January 1, 2010.

The 2009 Valuation sets forth the financial position of the Benefit Fund for the year ended December 31, 2009 on both a going concern and solvency basis, and confirms that the Benefit Fund does not require any special payments by the City of Toronto.

The estimated actuarial cost of the increase is $0.7 million on a going-concern basis and $0.8 million on a solvency basis.  This increase is payable from the assets of the Benefit Fund and would not create any funding shortfall or financial difficulty for the Benefit Fund.

As at December 31, 2009, the Fund had a smoothed going-concern surplus of $46.4 million and a smoothed solvency surplus of $13.9 million.

The Deputy City Manager and Chief Financial Officer reviewed this report and agrees with the financial impact.

The Benefit Fund Committee Toronto Fire Department Superannuation and Benefit Fund on April 19, 2010, considered a report (March 2010) entitled “Toronto Fire Department Superannuation and Benefit Fund Actuarial Valuation Report as of December 31, 2009”, submitted by Cynthia L. Rynne, Consulting Actuary, Buck Consultants, who gave a presentation thereon and answered Members’ questions.

The Committee held discussions regarding the CPI Increase for 2010.

The Treasurer recommends that:

1.         City Council authorize the Treasurer to execute an agreement with Manulife Financial extending for one year from January 1, 2011 to December 31, 2011, its existing contract with respect to the provision of administrative and underwriting services for the City's employee benefits plans on the same financial and other terms and conditions.

2.         City Council direct the appropriate City officials to take the necessary action to give effect to Recommendation 1.

This report requests that Council authorize the Treasurer to execute a one-year extension of the City of Toronto's existing agreement with The Manufacturers Life Assurance Company (“Manulife Financial”) for the period January 1, 2011 to December 31, 2011 with respect to the provision of administrative and underwriting services for employee benefits plans. The extension will provide sufficient additional time for staff to formulate a sound, comprehensive joint Request for Proposals (RFP) for such services for a period commencing January 1, 2012, on behalf of the City, the Toronto Police Services Board (TPSB) and the Toronto Transit Commission (TTC).

The estimated administration and insurance fees payable to Manulife Financial as a result of this one year extension is $6.9 million.  This amount is built into the benefit rates which are funded through Divisional Operating Budgets. 

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

This report seeks Council authority to adopt the necessary by-laws to designate 50,000 square feet of space to be leased by Toronto Employment and Social Services at 1880 Eglinton Avenue East as a municipal capital facility and to provide a property tax exemption for municipal and education purposes.  Providing a tax exemption for the leased space will result in a net financial savings to the City of approximately $176,041 per year, representing the provincial education share of taxes that will no longer be payable.

The annual property taxes on the space to be leased by Toronto Employment and Social Services at 1880 Eglinton Avenue East are estimated at approximately $407,899, comprised of a municipal portion of $231,858 and a provincial education portion of $176,041, based on 2010 estimated Current Value Assessment (CVA) and 2010 tax rates, including all capping adjustments.  

The annual operating budget for Toronto Employment and Social Services includes amounts for rent (including any property taxes payable) on leased space, and as such there would be no net impact on the municipal portion of taxes from the exemption, as the decrease in municipal tax revenue would be offset by a corresponding reduction in the annual budgetary requirement for Toronto Employment and Social Services.  However, making the leased space exempt would result in net savings to the City of approximately $176,041, representing the provincial education share of taxes that would no longer be payable once the exemption takes effect (See Table 1).

Table 1

Financial Savings due to Property Tax Exemption – 1880 Eglinton Avenue East

(Based on 2010 CVA and Tax Rates)

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

It is recommended by the Treasurer that:

1.         City Council approve the write-off of Water Account Number 352338-422493 in the amount of $ 86,955.05.

2.         The appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.

This report recommends the write-off of one (1) uncollectible water account in relation to water consumed prior to January 1, 2004 in the amount of $86,955.05 as all collection efforts have been exhausted. 

The recommended water write-off of $86,955.05 has been provided for in the water account titled “Allowance for Doubtful Water Accounts”.  As such, there are no financial impacts on current year expenditures.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

This report provides information on an anticipated timeline for making automated tax calculation statements and prior year tax receipts available via on-line requests for these products.

There are no financial implications as a result of this report.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Treasurer and City Solicitor recommend that:

1.         City Council authorize the public release of the user/public-friendly version of the parking ticket cancellation guidelines contained in Appendix B to Confidential Attachment 1 and publication on the City’s website after adoption of this report.

2.         The remainder of Confidential Attachment 1 remain confidential in its entirety, as the content relates to litigation or potential litigation affecting the City, and involves the security of property of the City.

3.         Authority be delegated to the Treasurer, or his/her designate, in consultation with the City Solicitor and General Manager of Transportation Services and Toronto Police Service, to amend or update the parking ticket cancellation guidelines from time to time as required, including to reflect and incorporate references to new by-laws and/or legislative requirements, new offences, amendments to existing by-laws or legislation, or new fines or fine amounts.

4.         The Treasurer, in consultation with the General Manager of Transportation Services, be directed to prepare a further report to the Government Management Committee as soon as possible in 2011 after completion of the Transportation Services review, to recommend the inclusion of new guidelines for couriers and delivery vehicles, and that staff continue to apply the existing guidelines until such time as the new guidelines are approved.

This report provides information on the guidelines used by staff in assessing parking ticket disputes and determining whether a cancellation of a parking ticket is warranted.

There are no financial implications associated with this report.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Chief Corporate Officer recommends:

1.         City Council authorize entering into a lease agreement with The Manufacturers Life Insurance Company for a five (5) year term commencing June 1, 2010 and expiring on May 31, 2015, including an option to extend for another five (5) year term, based substantially on the terms and conditions set out in the attached Appendix “A”, and subject to such further revisions and on such other terms and conditions deemed appropriate by the Chief Corporate Office, and in a form acceptable to the City Solicitor.

2.         City Council authorize the Chief Corporate Officer to administer and manage the lease agreement, including the provision for any consents, approvals,  notices and notices of termination provided that the Chief Corporate Officer may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

Total lease costs for the five (5) year term commencing June 1, 2010 are approximately $2,366,815 net of taxes, based on an annual basic rental rate of $13.50 per square foot and additional rent at approximately $17.09 per square foot, per annum of rentable area (14,886 square feet):

There is sufficient funding for this lease in the 2010 Approved Operating Budget for Shelter, Support and Housing Administration.  Funding requirements for 2011-2015 will be included in the respective year’s operating budget submission for Shelter, Support & Housing Administration and will be accommodated within approved operating budget targets.

The Deputy City Manager and Chief Financial Officer have reviewed this report and agree with the financial impact information.

The Chief Corporate Officer recommends that:

1.         City Council authorize entering into a Lease Renewal Agreement with Shepbram Investments Inc. for a two (2) year term commencing February 1, 2010 and expiring on January 31, 2012, including an option to renew for another two (2) year term, based substantially on the terms and conditions set out in the attached Appendix “A”, and such other terms and conditions deemed appropriate by the Chief Corporate Officer, and in a form acceptable to the City Solicitor.

2.         City Council authorize the Chief Corporate Officer to administer and manage the lease agreement, including the provision of any consents, approvals,  notices and notices of termination provided that the Chief Corporate Officer may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

The purpose of this report is to obtain authority to enter into a lease renewal agreement with Shepbram Investments Inc. for space at 2300 Sheppard Avenue West consisting of 7,232 square feet for continued use by Toronto Public Health. The Lease Agreement is for two (2) years with an option to extend for another two (2) year term.

The Chief Corporate Officer recommends that:

1.         City Council authorize entering into a Licence Extension Agreement with The International Group, Inc. for a term of ten (10) years substantially on the terms and conditions as set out in Appendix “A” and on such other terms and conditions as deemed appropriate by the Chief Corporate Officer, or his or her designate, and in a form and content acceptable to the City Solicitor.

2.         City Council authorize the Chief Corporate Officer to administer and manage the Licence including the provision of any consents, approvals, notices and notices of termination provided that the Chief Corporate Officer may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

The purpose of this report is to obtain authority to enter into an Extension Agreement with the International Group, Inc. (the” Licensee”) for the extension of a Road Crossing Licence under Salome Drive. The proposed Licence Extension Agreement (the “Licence”) is for a ten (10) year term, commencing as of December 15, 2007 and ending on December 14, 2017.

The Licence will generate the following revenue, net of applicable taxes, commencing retroactively on December 15, 2007:

The total revenue to the City over the ten (10) year term is $11,193.00 plus applicable taxes.  There are no outstanding payments under the current terms.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Chief Corporate Officer recommends that:

1.         City Council approve the release of the Section 30 Agreement between the City and 863880 Ontario Limited for lands on the west side of Strachan Avenue, subject to 863880 Ontario Limited’s rezoning and subdivision applications for 14 Strachan Avenue and 39-51 East Liberty Street being approved by City Council and becoming final and binding and subject to the execution and registration of a Subdivision Agreement securing the construction and dedication as a public highway, at no cost to the City, of the lands required by the City for local road purposes and the posting by 863880 Ontario Limited of any related security under such Agreement.

In 2001, the City entered into an agreement pursuant to Section 30 of the Expropriations Act (the “Section 30 Agreement”) with 863880 Ontario Limited (“863880”), the owner of certain lands on the west side of Strachan Avenue, to acquire a portion of the lands (“the Lands”) for the proposed Front Street Extension (the "FSE").  The FSE project also included a local road component.  As reference to the FSE was deleted from the Official Plan in early 2009, the City no longer requires the Lands for the FSE, but does still require a portion of the Lands for a local road.  

In May 2009, Council authorized the Director of Real Estate Services to hold discussions with 863880 to unwind the Section 30 Agreement and report back to Council when the lands required for local road purposes have been secured from 863880, at no cost to the City.   Discussions with 863880 have been completed.  As it is expected that the City will be acquiring the necessary lands for the local road from 863880 through 863880's subdivision application for 14 Strachan Avenue and 39-51 East Liberty Street, approval is now sought to release the Section 30 Agreement, subject to 863880's rezoning and subdivision applications being approved by City Council and the necessary Subdivision Agreement securing the construction and dedication as a public highway of the lands required for local road purposes being executed and registered on title.

Approval of this report will result in no financial impact to the City.  However, if the City does not release the Section 30 Agreement and instead completes the transaction, the City will be required to pay $1.0 Million compensation for the Lands on closing, in addition to any other compensation that might be payable once the matter has been determined by the OMB pursuant to the Expropriations Act. 

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Chief Corporate Officer and the Acting Executive Director of Social Development, Finance and Administration recommend that:

1.         City Council authorize a new Below-Market Rent (BMR) sub-lease agreement with Art Starts Neighbourhood Cultural Centre, for a three (3) year term, based on the terms and conditions set out in Appendix “A”, and such other terms and conditions deemed appropriate by the Chief Corporate Officer, and in a form acceptable to the City Solicitor.

2.         City Council authorize the Social Development, Finance and Administration Division (SDF&A) to receive funds on behalf of the City of Toronto from Oxford Properties Group, management company for Yorkdale Shopping Centre amounting to $156,000 in instalments of $52,000 per year over three years, and for SDF&A to disburse this funding to Art Starts Neighbourhood Cultural Centre for youth arts initiatives.

3.         City Council increase the Social Development, Finance and Administration (SDF&A) 2010 Operating Budget by $52,000 gross/ $0 net, with funding provided by Oxford Properties Group, to provide funding to Art Starts Neighbourhood Cultural Centre for youth arts initiatives.

4.         City Council authorize a new Below-Market Rent (BMR) lease agreement with Toronto Performing Theatre Alliance for a five (5) year term, based on the terms and conditions set out in Appendix “B”, and such other terms and conditions deemed appropriate by the Chief Corporate Officer, and in a form acceptable to the City Solicitor.

5.         City Council authorize the City Solicitor to complete the lease, deliver any notices, pay expenses and amend the respective commencement and other dates to such earlier or later date(s), on such terms and conditions as the City Solicitor, or his or her designate, may from time to time, determine.

6.         City Council authorize the Chief Corporate Officer, or his or her designate, to administer and manage the lease agreements, including the provision of any consents, approvals, notices and notices of termination, provided that the Chief Corporate Officer may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

7.         City Council grant an exemption to the Below Market Rent Policy to allow Art Starts Neighbourhood Cultural Centre to become a sub-tenant at Yorkdale Shopping Centre without the need to solicit a request for proposals as required by the Below Market Rent Policy.

The purpose of this report is to obtain City Council authority to enter into new below-market rent lease agreements with Art Starts Neighbourhood Cultural Centre and Toronto Performing Theatre Alliance.

This report also seeks City Council authority to receive funding for youth arts initiatives from Oxford Properties Group, and to disburse these funds to the Art Starts Neighbourhood Cultural Centre organization.

Sub-lease Agreement with Art Starts (Recommendation 1)

The proposed BMR sub-lease agreement with Art Starts assumes a sub-lease of 2,780 square feet of space within a non-City owned facility for a nominal net rent consideration.  The current agreement with the City’s Landlord (Yorkdale Shopping Centre Holdings Inc.) stipulates that the Landlord will provide HVAC, water, hydro and lighting to the premises at no cost to the City and shall maintain and repair all base building HVAC, electrical and mechanical equipment and facilities serving the premises so that the same are kept in good repair, order and condition.  The Landlord has also agreed to pay any applicable realty taxes and will provide usual janitorial cleaning services for the space.  Arts Starts shall be responsible for all other costs, including maintenance, repair and replacement of the premises.  Thus, there are no operating costs associated with the space for the City of Toronto.

The current agreement with Yorkdale also stipulates that the space may only be used and operated by the City as a community art centre offering programs and courses for all ages.  Thus, the City is unable to sub-lease the space to a third party to generate revenue.  Given the use clause within the existing agreement, there is no opportunity cost associated with the City’s sub-lease to Art Starts over the proposed 3-year term.

Receiving Funds from Oxford Properties for Art Starts (Recommendation 2)

The funding provided by Oxford Properties Group totalling $156,000 ($52,000 per year over three years) will be received by the SDF&A Division on behalf of the City of Toronto and will be disbursed to Art Starts in full.  Although this BMR lease agreement will have no net impact on the 2010-2011 operating budget for both the Division or the City of Toronto, the funding requirement of $52,000 gross/ $0 net per year in 2011 and 2012 will be considered as part of the 2011 and 2012 operating budget process. 

Lease Agreement with Toronto Performing Theatre Alliance (Recommendation 4)

The proposed BMR lease agreement with Toronto Performing Theatre Alliance assumes a lease of 300 square feet of space located at the Yonge-Dundas Square for a nominal net rent consideration.  All operating costs related to the space will be paid by the tenant, resulting in no operating cost to the City of Toronto. 

In accordance with the City’s Below Market Rent Policy on City-Owned Space Provided at Below Market Rent, the opportunity costs of entering into the Below Market Rent agreement must be determined and reported to City Council.  Research indicates that the total opportunity cost of the lease over the 5-year term is approximately $31,000.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Chief Corporate Officer recommends that:

1.         City Council authorize a limitation on the Contractor's liability to the City under the Master Contract and Phase Agreements to the cumulative amount of all contract sums under all Phase Agreements, including the Limited Notice to Proceed, plus any insurance proceeds.

2.         City Council authorize the inclusion of a reciprocal interest rate provision in the Master Contract, for overdue amounts payable by the City or the Contractor, utilizing simple interest at the Prime Rate plus two (2) per cent.

This report seeks Council approval of two items contained in the draft Master Contract and Phase Agreements between the General Contractor/Construction Manager, Vanbots, a division of Carillion Construction Inc., and the City.  Approval of these items is necessary to finalize these agreements and have them signed as expeditiously as possible, so that substantial work can commence on the project.

There are no anticipated financial impacts resulting from the adoption of this report.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

City Council, at its meetings of July 19, 20, 21 and 26, 2005, adopted a motion recommending that the General Manager of Parks, Forestry and Recreation (PFR) report to Council through Committee for approval of the healthy cold drink vending criteria for the next Request for Proposal.   The purpose of this report is to present the recommended criteria for the upcoming Cold Drink Vending and Pouring Rights Request for Proposal (RFP).

This report provides the results of a preliminary review to determine if the City can benefit from the use of car share vehicles to supplement the City’s fleet.  It also assesses the potential benefit of introducing additional technology to manage City vehicles.  This report was requested by Government Management Committee at its meeting March 11, 2010.

Two companies in Toronto offer short-term rental to their members of vehicles parked throughout the City.  A preliminary review indicates that the use of privately-owned car share vehicles could potentially benefit the City of Toronto by providing additional access to vehicles for occasional use.  Fleet Services will propose the use of car-share vehicles to its client Divisions.  If there is demand among the Divisions, Fleet Services will issue a competitive purchasing call and report on usage in the next Green Fleet Plan update.

The financial implications cannot be determined at this time.  Fleet Services is considering offering its client Divisions access to private car-share vehicles as a transportation alternative with the intent to reduce costs.  Taking into consideration their operational needs, mileage reimbursements and fleet size, Divisions can assess the financial implications.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Chief Information Officer and the Director, Purchasing and Materials Management recommend that:

1.         City Council grant authority to amend and increase the purchase order value for sole source acquisitions to Vignette Corporation, a wholly owned subsidiary of Open Text Corporation, for professional services from $475,904.00 net of GST by $750,000.00 net of GST and HST recoveries for a revised total value of $1,225,904.00 net GST and HST recoveries for ongoing work for the remainder of 2010 as requested by the I&T Division.

This report requests authority to increase the value of Purchase Order No. 6027876 by $750,000.00 and to amend the purchase order end date to December 31, 2010 for professional services from Vignette Corporation, being the only sole developer and owner of the proprietary software and services required by the City for professional services. This increase will bring the total amount spent with Vignette Corporation to $1,225,904.00 net of GST and HST recoveries. Vignette Corporation is a wholly owned subsidiary of Open Text Corporation.

The maximum staff authority limit of $500,000.00 net of all taxes has almost been reached through the cumulative value of previous sole source dollars spent by the Information & Technology (I&T) division for professional services required from Vignette Corporation.

To address future years, a subsequent report will be sent to Budget Committee requesting authority to spend up to $1,000,000.00 net of HST recoveries per year for future sole source procurement for I&T and other divisions for professional services from Vignette Corporation for years 2011 to 2014 as requested during the annual capital budget approval process and funding to be identified in the I&T 2011 to 2020 Capital Budget and Plan.

The approval of this amendment for 2010 is critical to allow work already underway to continue with the enterprise-wide rollout of web content management to and to improve the management and publishing of content on the City’s public web site. To continue to meet our 2010 targets, the key resources already engaged from Vignette Corporation are essential to ensure continuity to staff, product knowledge, best practice for implementation and overall direction. Vignette Corporation services will be required at various levels based on scope, complexity and knowledge transfer needs over the life of the project estimated to continue for the next 2 to 4 years.  This is based on estimated time required to strategically transition 44 divisions and units over to a new user centric way of managing web content and constructing a new web site that reflects a design that addresses how the public wants to interact with the City on the City’s public web site. 

Listed below are the total amounts (net of GST) approved through the sole source process for expenditure to Vignette Corporation as requested by the I&T Division June 2008 to March 2010:

To continue work for the period from June 2010 to the end of December 2010, the amended request results in an increase of $750,000.00 net of GST and HST recoveries from $475,904.00 net of GST (as presented in the above table) for a total value of $1,225,904.00 net GST and HST recoveries for professional services of Vignette Corporation in 2010.  Funding for 2010 is available in the 2010 approved Capital Budget for Information and Technology in accounts CIT045-01 (Web Development). 

For future years of 2011, 2012, 2013 and 2014, the estimated yearly expenditure of up to $1,000,000.00 net of HST recoveries is based on the projections for acquiring Vignette Corporation professional resources  which will be requested during the annual capital budget approval processes for a total of $4,000,000.00 net of HST recoveries.  Calculations are based on negotiated hourly rates for professional services. The estimated cash flows (net of HST recoveries) are as follows:

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

Letter submitted by Councillor Suzan Hall requesting that Real Estate division staff look into the feasibility of the City purchasing 91 Baywood Road.