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TABLE OF CONTENTS

REPORTS OF THE STANDING COMMITTEES

AND OTHER COMMITTEES

As Considered by

The Council of the City of Toronto

on June 9, 10 and 11, 1999


STRATEGIC POLICIES AND PRIORITIES COMMITTEE

REPORT No. 10

1 Incorporation of the Toronto Hydro Corporation

2 Resources for Access and Equity Functions and Final Recommendations of the Task Force on Community Access and Equity

3 Smog Prevention and Reduction: Status Report and Work Plan

4 Review and Harmonization of Environmentally Responsible Procurement

5 Summary of the City of Toronto's Response to the Mayor's Homelessness Action Task Force and Implementation Plan

6 Community Based Affordable Housing Demonstration Project 647-657 Lawrence Avenue West at Allen Road (Ward 8 - North York Spadina)

7 Housing First Policy for Surplus City-owned Property

8 1998 Adjustments within Consolidated Grants

9 Minor Recreation Grants - Eligibility Assessment of New Applicants

10 Toronto Heritage Fund Grants Program

11 Graffiti Transformation Program - 1999 Recommended Allocations

12 Community Services Grants Program - Eligibility Assessment of New Applicants

13 1999 Recommended Grants Contingency Budget

14 Distribution of the Reallocated Grants Funding

15 Allocation Criteria for a Food Related Capital Grants Program

16 Prepayment Interest and Discount on Advance Payment of Realty Taxes

17 Street Tree Planting Application - Toronto Atmospheric Fund Ward 10 (North York Centre) and Ward 12 (North York Seneca Heights)

18 Transmittal of Evaluation of the Leaside Neighbourhood Branch Library - Capital Budget Project

19 Toronto Youth Job Corps and Youth Outreach Toronto

20 Homes for the Aged - 1999 Operating Budget

21 Use of Sponsorship Revenues from Molson's Sponsorship Agreement for the Construction of Water Park Facilities (Wards 19 and 25 - High Park and Don River)

22 1999 Operating Budget - Follow Up Items

23 Big City Mayors Caucus of the FCM - April 29, 1999 Saskatoon Meeting Report

24 Greater Toronto Services Board 1999 Budget and Business Plan

25 Year 2000 Priority One Business Functions Status Report May 1999

City of Toronto


REPORT No. 10

OF THE STRATEGIC POLICIES AND PRIORITIES COMMITTEE

(from its meeting on June 1, 1999,

submitted by Mayor Mel Lastman , Chair)


As Considered by

The Council of the City of Toronto

on June 9, 10 and 11, 1999


1

Incorporation of the Toronto Hydro Corporation

(City Council on June 9, 10 and 11, 1999, amended this Clause by:

(a) deleting Recommendation No. (1)(i) of the Strategic Policies and Priorities Committee embodied in the confidential communication dated June 1, 1999, from the City Clerk, viz.:

"(i) amending Section (2.2) (b) to read as follows:

'(2.2)(b) the Shareholder's income stream from Toronto Hydro be comparable to the Shareholder's estimated financial value as determined by an independent financial evaluation from time-to-time.' ";

so that the recommendations of the Strategic Policies and Priorities Committee shall now read as follows:

"The Strategic Policies and Priorities Committee recommends:

(1) the adoption of the confidential report (May 20, 1999) from the Chief Administrative Officer, subject to the following amendments to Appendix 1, entitled 'City of Toronto, Shareholder Direction Relating to Toronto Hydro Corporation', embodied in the aforementioned confidential report:

(ii) amending Section 2.3 by adding thereto the following additional principle:

'2.3 (i) that Toronto Hydro will operate in a manner which will protect and enhance the City's urban forest.'; and

(iii) amending Section 7.1 to read as follows:

'7.1 The Board will use its best efforts to ensure that Toronto Hydro meets the financial performance standards set out in this Article 7.'; and

(2) that the Business Plan for Toronto Hydro Services address:

(i) the level of risk of this venture;

(ii) the expected subsidies from Toronto Hydro to Toronto Hydro Services for start up costs; and

(iii) the point in time when the one-third dividend from Toronto Hydro will cease."; and

(b) adding thereto the following:

"It is further recommended that:

(1) the Board of Directors of Toronto Hydro be requested to submit a report to Council, through the Policy and Finance Committee, by September 1999, on:

(i) how it is addressing the need, not only in an 'ice storm' eventuality, but also on the general need, for underground wiring in older parts of the City; and

(ii) the capital requirements and projected allocations for such purpose;

(2) the Board of Directors of the Toronto Hydro Corporation be directed to:

(i) examine the issue of harmonization of rates across the new City, specifically as it relates to whether any changes to the harmonization policy adopted by the former Hydro Corporation should be made, with a view to phasing in that harmonization over a time frame similar to that adopted by the new City with respect to water rates, user fees and snow removal services; and

(ii) report thereon to the Policy and Finance Committee by September 1999;

(3) any hydro programs with respect to telecommunications and telecommunications access agreements be co-ordinated with the Chief Administrative Officer, through the Telecommunications Steering Committee;

(4) the Chief Administrative Officer be requested to submit a report to the Policy and Finance Committee on the potential avenues, such as conditions on licences issued by the Ontario Energy Board, that could be undertaken by the City to accomplish the City's environmental goals with the other electricity providers;

(5) the Chief Administrative Officer and the Board of Directors of the Toronto Hydro Corporation be requested to submit a joint report to the Works Committee on Toronto Hydro's planned approach to achieve deep lake water cooling and an integrated district cooling system for Toronto;

(6) Council express its appreciation to the staff of the Chief Administrator's Office and other Departmental staff involved with this matter for their exemplary work in this regard; and

(7) the following motion be referred to the Chief Administrative Officer for report thereon to the Policy and Finance Committee by September 1999:

Moved by Councillor Adams:

'That the Clause be amended by adding thereto the following:

"It is further recommended that City Council provide the following additional directions to the Board of Directors of the Toronto Hydro Corporation:

That:

(1) Toronto Hydro's retail company offer a variety of energy purchase programs which provide opportunities for consumers to purchase clean or green electricity and energy efficiency services;

(2) the retail company's marketing strategy encourage the use of clean or green energy;

(3) the business plan of Toronto Hydro include a strategy to reduce the company's reliance on energy generation which emits CO2, SO2 and NOx;

(4) Ontario Power Generation, the current primary supplier of electricity for Toronto Hydro, be encouraged to make available a choice of electricity sources which are clean or green, so that Toronto Hydro can buy clean power, especially on smog days; and

(5) Toronto Hydro purchase clean power on smog days, regardless of price, up to a maximum premium of 50 percent above market rates, when this choice is available to meet its default supply demand on smog days." ' ")

The Strategic Policies and Priorities Committee recommends the adoption of the Recommendations of the Strategic Policies and Priorities Committee embodied in the confidential communication (June 1, 1999) from the City Clerk which was forwarded to Members of Council under confidential cover.

--------

The Chief Administrative Officer and Mr. David McFadden, Legal Advisor, Smith Lyons, Barristers and Solicitors, gave an overhead presentation to the Strategic Policies and Priorities Committee in connection with the foregoing matter.

The following Members of Council appeared before the Strategic Policies and Priorities Committee in connection with the foregoing matter:

- Councillor Mario Silva, Trinity Niagara; and

- Councillor Jack Layton, Don River.

(City Council on June 9, 10 and 11, 1999, had before it, during consideration of the foregoing Clause, the following confidential communication (June 1, 1999) from the City Clerk:

Recommendations:

The Strategic Policies and Priorities Committee recommends:

(1) the adoption of the confidential report (May 20, 1999) from the Chief Administrative Officer subject to the following amendments to Appendix 1, entitled "City of Toronto, Shareholder Direction Relating to Toronto Hydro Corporation", embodied in the aforementioned confidential report:

(i) amending Section 2.2 (b) to read as follows:

"(2.2) (b) the Shareholder's income stream from Toronto Hydro be comparable to the Shareholder's estimated financial value as determined by an independent financial evaluation from time-to-time.";

(ii) amending Section 2.3 by adding thereto the following additional principle:

"2.3 (i) that Toronto Hydro will operate in a manner which will protect and enhance the City's urban forest.";

(iii) amending Section 7.1 to read as follows:

"7.1 The Board will use its best efforts to ensure that Toronto Hydro meets the financial performance standards set out in this Article 7."; and

(2) that the Business Plan for Toronto Hydro Services addresses:

(i) the level of risk of this venture;

(ii) the expected subsidies from Toronto Hydro to Toronto Hydro Services for start up costs; and

(iii) the point in time when the one-third dividend from Toronto Hydro will cease.

Background:

The Strategic Policies and Priorities Committee on June 1, 1999, at its in-camera meeting, had before it a confidential report (May 20, 1999) from the Chief Administrative Officer recommending that:

(1) the City retain ownership of Toronto Hydro for the foreseeable future and that the City's ownership be re-evaluated if the financial return is not sustained at a level comparable to the City's cost of new debt issuance;

(2) Council leave open the option for Toronto Hydro to develop and invest in the non-regulated, competitive businesses permitted by legislation wherever there is a good business case, risks are reasonable, and returns are satisfactory;

(3) the Board of Directors of Toronto Hydro Corporation provide for Council's information an overall business strategy indicating the businesses it intends to develop, the forecasted investment required, and the financial and environmental benefits to Toronto Hydro, the City and consumers and the Board of Directors be authorized to assess individual initiatives and commit resources in accordance with the strategy;

(4) Council endorse the following as the City's objectives in structuring its relationship with Toronto Hydro:

(a) the value of the corporation be maintained or increased;

(b) the City's income stream from Toronto Hydro be comparable to the City's estimated financial benefit if the asset had been sold;

(c) consumers not be unduly impacted by the change in structure; and

(d) environmental impacts be improved;

(5) Council authorize the incorporation of Toronto Hydro-Electric System Limited as the distribution company, Toronto Hydro Energy Services Inc. as the competitive company, and Toronto Hydro Corporation as the holding company, wholly owned by the City of Toronto, which owns the shares of the aforementioned two corporations and authorize the City Solicitor to file the Articles of Incorporation;

(6) the Board of Directors of the Toronto Hydro Corporation, who were appointed by Council, in turn appoint the members to the boards of directors of the two subsidiaries from among its own members and in accordance with Provincial regulations;

(7) in addition to the following approvals required by the shareholder under the Ontario Business Corporation's Act:

(a) amendments to the articles of incorporation or by-laws of the corporation;

(b) plans to amalgamate or incorporate under other jurisdictions;

(c) plans to dissolve the company;

(d) changes to the share structure;

(e) sale of substantially all of the corporation's assets;

(f) appointment of the auditor; and

(g) changes to the structure and membership of the Board of Directors;

the following additional matters be approved by City Council as shareholder:

(h) any recommended financial assistance to directors or officers of the corporation or subsidiaries;

(i) capital investments in the distribution company significantly above those anticipated in the initial business plan;

(j) expansion of the area of service of the distribution system beyond the City of Toronto; and

(k) investment in other than approved classes of securities and debt instruments;

(8) Council appoint Ernst & Young, Chartered Accountants as the first auditor of the Toronto Hydro Corporation and its subsidiaries;

(9) the City Clerk be named the voting proxy for the City as shareholder to convey to the Board of Directors any decisions made by Council respecting the Toronto Hydro Corporation;

(10) the Board of Directors develop corporate by-laws for approval by Council and include specifically a policy requiring submission of receipts for reimbursement of out-of-pocket expenses for board members;

(11) the following control mechanisms be implemented in addition to any regulatory requirements of the Ontario Energy Board and the right of Council to replace any or all members of the Board of Directors at any time:

(a) an annual business plan be reviewed by the City Chief Financial Officer to ensure consistency with the City's overall financial and strategic expectations as outlined in the Shareholder's Direction from time to time and the Chief Financial Officer report any irregularities to Council recommending appropriate action;

(b) quarterly reports be submitted to the City Chief Financial Officer and annual consolidated financial statements be submitted by the Board of Directors to Council; and

(c) the City Chief Financial Officer and City Auditor or their designates be granted unrestricted access to the books and records of the corporation and subsidiaries during normal business hours;

(12) the City's consideration upon transfer of the assets to Toronto Hydro consist of 40 percent equity and 60 percent debt to the City;

(13) upon transfer of the assets to the new Toronto Hydro Corporation, the City retain cash deemed as surplus to the immediate needs of Toronto Hydro and any surplus properties which may be useful or sellable by the City as listed in Schedule E of the attached Transfer By-Law;

(14) initially, the financial expectations for Toronto Hydro be stated as follows:

(a) the distribution company maintain a financial structure and risk profile that will achieve a credit rating of A (low) or higher;

(b) annual capital expenditures in excess of the normal maintenance requirements be approved by Council;

(c) the distribution company be authorized to set distribution rates in accordance with the regulations forthcoming from the OEB; and

(d) the quarterly dividend paid to the City be equal to 2/3 of the increase in cash of the distribution company after allowances have been made for operating and capital needs, the balance being retained by Toronto Hydro for investment in its competitive business;

(15) all proceeds of the debt and dividends from Toronto Hydro be used toward the existing City capital obligations and not be used to increase City operating expenses;

(16) the Strategic Policies and Priorities Committee endorse in principle the terms of the Shareholder Direction and the Transfer By-Law as attached in Appendices 1 and 2 of this report and that, if necessary, the City Solicitor finalize the form of these documents for approval by Council; and

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

The Chief Administrative Officer and Mr. David McFadden, Q.C., Legal Adviser, Smith Lyons, Barristers and Solicitors, gave an overhead presentation to the Strategic Policies and Priorities Committee in connection with the foregoing matter.

The following Members of Council appeared before the Strategic Policies and Priorities Committee in connection with the foregoing matter:

- Councillor Mario Silva, Trinity Niagara; and

- Councillor Jack Layton, Don River.

(Report dated May 20, 1999,

addressed to the Strategic Policies and Priorities Committee,

from the Chief Administrative Officer.)

Purpose:

This report provides an overview of the options available to the City in responding to the Electricity Competition Act (Bill 35), recommends a course of action for the City, and proposes terms of the documents required to implement those actions.

Financial Implications and Impact Statement:

Incorporation of the Toronto Hydro Corporation as a share capital corporation under the Ontario Business Corporations Act with the City as the sole shareholder presents the opportunity for the City to realize significant new revenues from surplus funds and future profits of Toronto Hydro.

Recommendations:

It is recommended that:

(1) the City retain ownership of Toronto Hydro for the foreseeable future and that the City's ownership be re-evaluated if the financial return is not sustained at a level comparable to the City's cost of new debt issuance;

(2) Council leave open the option for Toronto Hydro to develop and invest in the non-regulated, competitive businesses permitted by legislation wherever there is a good business case, risks are reasonable, and returns are satisfactory;

(3) the Board of Directors of Toronto Hydro Corporation provide for Council's information an overall business strategy indicating the businesses it intends to develop, the forecasted investment required, and the financial and environmental benefits to Toronto Hydro, the City and consumers and the Board of Directors be authorized to assess individual initiatives and commit resources in accordance with the strategy;

(4) Council endorse the following as the City's objectives in structuring its relationship with Toronto Hydro:

(a) the value of the corporation be maintained or increased;

(b) the City's income stream from Toronto Hydro be comparable to the City's estimated financial benefit if the asset had been sold;

(c) consumers not be unduly impacted by the change in structure; and

(d) environmental impacts be improved;

(5) Council authorize the incorporation of Toronto Hydro-Electric System Limited as the distribution company, Toronto Hydro Energy Services Inc. as the competitive company, and Toronto Hydro Corporation as the holding company, wholly owned by the City of Toronto, which owns the shares of the aforementioned two corporations and authorize the City Solicitor to file the Articles of Incorporation;

(6) the Board of Directors of the Toronto Hydro Corporation, who were appointed by Council, in turn appoint the members to the boards of directors of the two subsidiaries from among its own members and in accordance with Provincial regulations;

(7) in addition to the following approvals required by the shareholder under the Ontario Business Corporation's Act:

(a) amendments to the articles of incorporation or by-laws of the corporation;

(b) plans to amalgamate or incorporate under other jurisdictions;

(c) plans to dissolve the company;

(d) changes to the share structure;

(e) sale of substantially all of the corporation's assets;

(f) appointment of the auditor; and

(g) changes to the structure and membership of the Board of Directors;

the following additional matters be approved by City Council as shareholder:

(h) any recommended financial assistance to directors or officers of the corporation or subsidiaries;

(i) capital investments in the distribution company significantly above those anticipated in the initial business plan;

(j) expansion of the area of service of the distribution system beyond the City of Toronto; and

(k) investment in other than approved classes of securities and debt instruments;

(8) Council appoint Ernst & Young, Chartered Accountants as the first auditor of the Toronto Hydro Corporation and its subsidiaries;

(9) the City Clerk be named the voting proxy for the City as shareholder to convey to the Board of Directors any decisions made by Council respecting the Toronto Hydro Corporation;

(10) the Board of Directors develop corporate by-laws for approval by Council and include specifically a policy requiring submission of receipts for reimbursement of out-of-pocket expenses for board members;

(11) the following control mechanisms be implemented in addition to any regulatory requirements of the Ontario Energy Board and the right of Council to replace any or all members of the Board of Directors at any time:

(a) an annual business plan be reviewed by the City Chief Financial Officer to ensure consistency with the City's overall financial and strategic expectations as outlined in the Shareholder's Direction from time to time and the Chief Financial Officer report any irregularities to Council recommending appropriate action;

(b) quarterly reports be submitted to the City Chief Financial Officer and annual consolidated financial statements be submitted by the Board of Directors to Council; and

(c) the City Chief Financial Officer and City Auditor or their designates be granted unrestricted access to the books and records of the corporation and subsidiaries during normal business hours;

(12) the City's consideration upon transfer of the assets to Toronto Hydro consist of 40% equity and 60% debt to the City;

(13) upon transfer of the assets to the new Toronto Hydro Corporation, the City retain cash deemed as surplus to the immediate needs of Toronto Hydro and any surplus properties which may be useful or sellable by the City as listed in Schedule E of the attached Transfer By-Law;

(14) initially, the financial expectations for Toronto Hydro be stated as follows:

(a) the distribution company maintain a financial structure and risk profile that will achieve a credit rating of A (low) or higher;

(b) annual capital expenditures in excess of the normal maintenance requirements be approved by Council;

(c) the distribution company be authorized to set distribution rates in accordance with the regulations forthcoming from the OEB; and

(d) the quarterly dividend paid to the City be equal to 2/3 of the increase in cash of the distribution company after allowances have been made for operating and capital needs, the balance being retained by Toronto Hydro for investment in its competitive business;

(15) all proceeds of the debt and dividends from Toronto Hydro be used toward the existing City capital obligations and not be used to increase City operating expenses;

(16) the Strategic Policies and Priorities Committee endorse in principle the terms of the Shareholder Direction and the Transfer By-Law as attached in Appendices 1 and 2 of this report and that, if necessary, the City Solicitor finalize the form of these documents for approval by Council; and

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

Background:

The City of Toronto Act 1997 amalgamated the 6 former Hydro-Electric Commissions into one and designated the new City of Toronto as the owner of the combined assets, under the management and control of the new Toronto Hydro-Electric Commission. The Commission is not an agency of the City and does not rely on the property tax base for funding. All expenses are covered through consumer electricity rates. The City currently has the right to appoint the Commission, but has no right to give direction to the Hydro Commission, approve its budget, or receive funding from company surpluses. The Commission is governed by the Public Utilities Act.

The Energy Competition Act (Bill 35) was introduced by the Provincial Government in June 1998, was passed by the Ontario Legislature and given Royal Assent on October 30, 1998. The Act requires that the City incorporate Toronto Hydro under the Ontario Business Corporations Act (OBCA) within 2 years, ending November 7, 2000. This new entity will be required to pay to the Province an amount equivalent to corporate income tax.

The legislation also stipulates that the City will be the sole shareholder of the new corporation. Bill 35 requires that the electricity distribution system be separated from other activities of municipal electric utilities, such as power generation, electricity retailing, and the rental or sale of water heaters. The electricity distribution system (wires) will continue to operate as a monopoly regulated by the Ontario Energy Board (OEB), but the generation and retailing of electricity will be open to the competitive market. To avoid cross-subsidization of the competitive businesses by the distribution business, the legislation requires that the municipal utilities establish separate corporations to manage the regulated and non-regulated businesses.

Council Reference/History:

Over the last year, Toronto Hydro has been preparing for the changes introduced by Bill 35. The Mayor requested that the City Chief Administrative Officer co-ordinate the efforts of the City and Toronto Hydro in defining the relationship between the City and Toronto Hydro. A CAO report dated September 23, 1998, outlined the steps necessary to address this issue.

As a first step, the CAO organized a series of briefings for Councillors to become familiar with the legislation and the decisions which Council would have to make respecting incorporation of both Toronto Hydro and TDHC. The material from these briefings was distributed to all Members of Council.

The CAO also reported on the selection process and the qualifications of the Board for the new Toronto Hydro Corporation. The issue was referred to the Mayor who recommended that a Steering Committee be authorized by Council to nominate the new Board of Directors. The CAO engaged Caldwell Partners to assist the Steering Committee and a new Board of Directors took office on April 19,1999.

The City CAO organized a joint staff working group comprised of both City and Toronto Hydro staff to develop the terms of the new relationship between the City and the new Toronto Hydro Corporation. Financial and legal advisors to both the City and Toronto Hydro were also participants in this working group. This report is the product of the working group activities and recommends the structure of the new corporation, the principles recommended to guide in developing the financial relationship, and the terms of the Shareholder's Direction and the Transfer By-law required to establish the new corporation and give direction to the new Board.

Related to this issue, but quite separate, are a number of directives regarding the Toronto District Heating Corporation (TDHC) and its new initiative in district cooling. Bill 35 also permits TDHC to incorporate as a share capital corporation under the OBCA. TDHC is a partnership among the City of Toronto, the Province of Ontario, the University of Toronto, and the group of downtown hospitals. Although traditionally TDHC's business has centred around generation and supply of district steam heating systems, TDHC has developed a plan to provide district cooling systems as well through Deep Lake Water Cooling (DLWC). At the same time, Toronto Hydro, in co-operation with other partners, has been developing plans for a new cooling system using ice plants. Several Council directives have indicated a need to ensure that these two initiatives, both having a City interest, are complementary to one another rather than in competition. Before TDHC can be incorporated, it will be necessary to determine the relative value of shares of the partners and develop a shareholders' agreement which will govern how the shareholders will conduct business. The incorporation of TDHC and its relationship with Toronto Hydro will be the subject of a separate report to be brought forward to Council by the CAO in the near future.

Discussion:

This report provides an overview of the options available to the City in responding to Bill 35, recommends a course of action for the City, and outlines the terms of the documents required to implement those actions.

There are a number of decisions which the City has to make in response to Bill 35 and in establishing the corporate structures as required by the legislation. These include:

(1) Should the City keep the company or sell it - wholly or in part?

(2) Should the City continue to own the monopoly distribution component only or enter into the competitive market of generation, retailing, and related businesses?

(3) What City objectives will guide the Board of Directors in making business decisions?

(4) What is the corporate structure of the new company and what processes are necessary for the City to carry out its duties as a shareholder?

(5) What degree of latitude in making business decisions will be afforded the Board and what controls are required?

(6) What assets are required to establish the new corporation and what financial structure is necessary to enable it to grow while providing a return to the City?

(7) What financial return does the City expect from this investment?

(8) How should the City apply income from this investment?

This report discusses each of these questions and recommends a course of action.

(1) Sell or Keep:

There are a number of issues in considering whether the City should retain sole ownership of its electric company or sell all or part of it to another investor.

First, is there a willing buyer? Early on there was considerable interest in the market in investing in or outright purchasing of electric companies, possibly at prices considerably above book value. However, interest in selling has been tempered by the introduction of a Provincial transfer tax of 33% of gross assets. The transfer tax will be used to pay down the stranded debt, the residual remaining from the Ontario Hydro debt that was not transferred to the new Provincial corporations. The transfer tax is to be applied to the sale of any interest in a municipal electric utility, or of any property that was used in connection with its business, upon the sale to any party other than another municipal electricity utility or other public sector entities. By November 7, 2000, these non-taxable entities will also be subject to this transfer tax. This limits the interest in selling to the private sector as it adversely impacts the proceeds which the City would realize from such a sale compared to the future benefits of retaining ownership.

There are still many willing investors who would like to invest in any electric utility, particularly in Toronto Hydro with its high-density market, because of the stability of the regulated portion of the business. Revenues are predictable for the monopoly and the customer base is relatively static. Given that the rates for the distribution business will be regulated by the Ontario Energy Board, the distribution rates will be less influenced by economic cycles than for other corporate entities.

A partial sale could bring significant new private sector money into the City, but such investments usually come with some strings attached. Large investors would be entitled to a share of the profits of the company and would likely demand membership on the Board and possibly other influences. The implications of partnering with additional shareholders would likely differ depending on the individual proposed partners and would need to be thoroughly assessed through a formal offering process before proceeding.

In assessing the sell/keep option, the City must also determine whether it has an on-going interest in the business beyond financial considerations. The distribution business forms an integral part of the infrastructure of the City and the City may want to have an influence on the maintenance and operation of that infrastructure. The City also has an interest in ensuring that the company remains stable and viable in order to guarantee the reliability of a service which is essential to business and residents of the City as well as the City's own services.

Finally, the City must consider whether keeping the distribution company is in the financial best interests of the City. The current book value of Toronto Hydro is $1.7 billion. Toronto Dominion Securities (TDSI) was engaged by Toronto Hydro to provide an assessment of the current value of Toronto Hydro. The assessment was also reviewed by the City's financial advisor in this matter, RBC Dominion Securities (RBCDS), who concurred with the findings. TDSI's findings indicated that the indicative value range of Toronto Hydro was:

With Gradual Recapitalization $1.4 billion to $2.4 billion

With Immediate Recapitalization $1.6 billion to $2.8 billion

The value on sale of the company depends on the degree and speed with which the corporation moves to a commercial debt/equity ratio and moves toward a commercial rate of return. The corporation is worth more the faster it moves to a higher debt level and commercial rate of return.

If the City keeps its investment in Toronto Hydro, it should look for an income stream which matches the interest which could be earned or avoided through sale of the company in order to justify retention of the company on purely financial terms.

It is recommended that the City retain ownership of Toronto Hydro for the foreseeable future and that the City's ownership be reviewed if the financial return is not sustained at a level comparable to the City's cost of new debt issuance.

(2) Investment in Competitive, Non-regulated Business

Most of the current activities of Toronto Hydro consists of the distribution of electricity and will be, therefore, a regulated, monopoly business in the restructured electricity market. All other current or future business activities associated with the electricity business carried on by Toronto Hydro will fall in the competitive, non-regulated sector. Bill 35 establishes those competitive activities in which municipal electric utilities may become involved. These activities are:

(i) power generation;

(ii) retailing electricity;

(iii) distributing or retailing gas or other energy products;

(iv) providing meter installation and reading services and billing services;

(v) managing or operating water and sewage services;

(vi) renting or selling hot water heaters; and

(vii) providing services to improve energy efficiency.

In the new competitive electricity market, Toronto consumers will continue to be supplied their electricity through the wires of the distribution company, but will have a choice as to the party from whom they will purchase this power.

Consumers may choose to buy power from a retailer who will typically guarantee a price level to its customers and buy direct from generators in volumes based on their customer demands. This business can be risky compared to the distribution business since the retailer must match generators' prices to pricing offered to consumers in what can be a volatile market. The retail business will also likely be highly competitive. Toronto Hydro's competitive affiliate could be involved in this kind of activity.

Those customers who choose not to buy from a retailer would be deemed to be "default supply" customers. These customers would be provided their power through the distribution company or through its competitive affiliate at the spot price for power in the Province. Default supply customers would see their prices rise and fall from time to time to reflect movements in the spot price. They would not receive their power at a guaranteed price level, like customers buying from a retailer, since no one would be assuming the price risk for them nor would they expect to be paying any form of premium to avoid price fluctuations.

A key question is whether the City wants to invest in or continue to hold ownership of those portions of the electricity business that will now compete with the private sector. The considerations include capital investment required, expected return, level of risk, diversity of the portfolio, responsiveness to market forces, ability to maintain a business agenda, and competency.

Competitive pricing is generally driven by market forces rather than being based on the cost of the product, as is the case for the distribution company and most public sector pricing. This in itself has inherent risks if costs cannot be held in check and reduced when market prices are forced down by competition. At this point, it is unknown how many companies and which companies will be players in the electricity market. Observations of other deregulated utility industries would predict that a flood of new and existing companies will enter the market as early as permitted and aggressive marketing and pricing strategies will initially create a highly competitive market in retailing electricity.

However, Toronto Hydro has the advantage of already supplying all of its current 650,000 customers in Toronto. Even so, aggressive marketing and pricing will still be required to retain this customer base in the new market and it is unlikely that all customers will be retained. It will be difficult for the corporation to change its mind-set from that of a monopoly, but Toronto Hydro has already recruited specialist staff in preparation for these changes. In addition, Toronto Hydro could consider engaging a partner with experience and a similar client base to develop the retail business.

Of all electric utilities in Ontario, Toronto Hydro has the size, resources, customer base, and credibility to be successful in this new market which is no longer limited to the Toronto area. There may be synergies between the new initiatives and the distribution company which may give Toronto Hydro a competitive advantage in providing consumers with a wide range of services.

As a major player in the competitive industry, Toronto Hydro could be influential in ensuring that energy conservation and environmental responsibility are retained as important issues for consumers. Council has indicated its strong support for action on environmental issues, particularly those related to air quality and global climate change. Toronto Hydro is well situated to develop co-generated electricity with natural gas technologies that emit far fewer pollutants than either coal-fired or nuclear generating stations, and renewable energies such as wind and solar energy, which emit no air pollutants. With a planned business approach, Toronto Hydro could become an environmental leader in this field while remaining a viable business enterprise.

The new Board of Directors selected by Council at its meeting of April 13, 1999, brings the business perspective necessary to lead the company into the competitive businesses. However, care must be taken by Council to permit the new Board to operate on a commercially prudent basis if it is to enter the competitive market. The pursuit of a non-profit agenda could result in a non-viable business.

It is recommended that Council leave open the option for Toronto Hydro to develop and invest in the non-regulated, competitive businesses permitted by legislation wherever there is a good business case, risks are reasonable, and returns are satisfactory.

At its meeting of April 13, 14 and 15, 1999, Council requested that the new Board of Directors submit a strategic business plan to Council in September. The Board of Directors will be expected to assess the business risks, determine the investment required, forecast the financial returns, and assess the benefits of investing in the non-regulated businesses. The Board should also articulate its environmental strategy including its commitment to renewable energy. These are important strategic investments which may involve risk as yet unknown and may impact the City's ultimate return on investment. Council should be apprised of the strategy. In future years, the Board of Directors will be expected to assess project business plans and authorize investments within their mandate and which the Board deems appropriate to support the high level strategy.

It is recommended that the Board of Directors of Toronto Hydro provide for Council's information an overall business strategy indicating the businesses it intends to develop, the forecasted investment required, and the financial and environmental benefits to Toronto Hydro, the City and consumers and the Board of Directors be authorized to assess individual initiatives and commit resources in accordance with the strategy.

(3) City Objectives

In order to ensure that Toronto Hydro is managed in accordance with the City's objectives, it is necessary for the City to outline some specific objectives and guiding principles. The following City objectives were developed in co-operation with the staff working group:

(a) The value of the corporation is maintained or increased;

(b) The City's income stream from Toronto Hydro be comparable to the City's estimated

financial benefit if the asset had been sold;

(c) Consumers are not unduly impacted by the change in structure; and

(d) Environmental impacts be improved.

The strategies outlined in this report and the Shareholder Direction and Transfer By-Law attached to this report were developed in accordance with these objectives. It is recommended that these objectives be endorsed by City Council.

(4) Corporate Structure and Duties of Shareholder

Toronto Hydro Corporate Structure

In the past, Toronto Hydro purchased power from Ontario Hydro (the generator) and sold and delivered this power to the consumer. Under the new legislation, distribution will continue to be a monopoly business regulated by the OEB, but both generation and retailing will be non-regulated and competitive. The legislation requires that the regulated business be kept structurally separate from the non-regulated businesses. This means that the corporate structure must establish different companies for these components.

A number of structural options are possible:

(a) Separate corporations each owned individually by the City. This is the model that the Provincial government has implemented.

(b) The regulated business owns each of the non-regulated corporations.

(c) A "holding company" owns and manages the various corporations which deliver regulated and non-regulated services.

The joint working group determined that option (c) was the most appropriate for Toronto Hydro. It has the following advantages:

(a) one overall board can manage the transition from the current structure to the required structure;

(b) the City deals with one entity and establishes overall objectives for the entire portfolio;

(c) one overarching structure can develop centralized services for various companies to keep overhead and administrative costs down; and

(d) one board can co-ordinate activities which are complementary to maximize returns and manage strategic investments.

Under this scenario, the Board of Directors which has been selected by Council will become the holding company board of directors. The Toronto Hydro Corporation (the holding company) will be wholly owned by the City as the sole shareholder. In turn, the Toronto Hydro Corporation will own all of the shares of its two subsidiaries. The Toronto Hydro-Electric System Limited will be the subsidiary distribution company which is a monopoly and regulated by the Ontario Energy Board. The Toronto Hydro Energy Services Inc. will be the non-regulated subsidiary operating businesses in the competitive market.

Provincial regulations requires that 1/3 of the members of the board of directors of the distribution company be independent from directors of competitive subsidiaries. The boards of the subsidiaries need not be large and could be comprised of at least 3 members of the holding company board. These members could be selected by the holding company board from among its own members. This assures Council that the members appointed by Council are indeed managing the business directly.

It should be noted, however, that some strategic investments will require partnerships with other public and private sector concerns. At present, Toronto Hydro is already in partnership with Ontario Power Generation Inc. (OPGI), Mississauga Hydro and Canadian Utilities in OPGI's Lakeview generation project and intends to develop other projects in partnership with both OPGI and the private sector. These individual projects and businesses may require their own boards comprised of members from all partners. However, Toronto Hydro's share in these joint ventures would be managed by the board of the competitive subsidiary, Toronto Hydro Energy Services Inc.

With time, it is conceivable that several individual corporations will be required to develop distinct projects or specific services to niche markets. The overall corporate structure could eventually become quite complex. However, under the holding company model, the City's interests will be managed by a single Board of Directors appointed by Council.

It is recommended that Council authorize the incorporation of Toronto Hydro-Electric System Limited as the distribution company, Toronto Hydro Energy Services Inc. as the competitive company, and Toronto Hydro Corporation as the holding company, wholly owned by the City of Toronto, which owns the shares of the aforementioned two corporations and authorize the City Solicitor to file the Articles of Incorporation.

It is also recommended that the Board of Directors of the Toronto Hydro Corporation, who were appointed by Council, in turn appoint the members to the boards of directors of the two subsidiaries from among its own members and in accordance with Provincial regulations.

Shareholder Duties and Processes

The shareholder of any private corporation incorporated under the OBCA has certain rights and obligations as outlined in the attached Shareholder Direction in Section 5.2. The shareholder must approve:

(a) amendments to the articles of incorporation or by-laws of the corporation;

(b) plans to amalgamate or incorporate under other jurisdictions;

(c) plans to dissolve the company;

(d) changes to the share structure;

(e) sale of substantially all of the corporations assets;

(f) appointment of the auditor; and

(g) changes to the structure and membership of the Board of Directors.

The Board of Directors has a fiduciary duty to act in the best interests of the corporation. As such, the Directors are legally accountable for the performance and actions of the corporation. If the shareholder (the City) interferes with the decisions of the Board, the City may assume legal liability for such decisions and cannot hold the Board accountable. Care must be taken to ensure that the Board retains responsibility for the corporation while ensuring that Council protects its investment. In addition to the statutory requirements noted above, it is recommended that the following matters also be approved by City Council as shareholder:

(h) any recommended financial assistance to directors or officers of the corporation or subsidiaries;

(i) capital investments in the distribution company significantly above those anticipated in the initial business plan;

(j) expansion of the area of service of the distribution system beyond the City of Toronto; and

(k) investment in other than approved classes of securities and debt instruments.

These are detailed in section 5.3 of the attached Shareholder Direction.

The shareholder must also approve the by-laws which govern the operation of the corporation and the board of directors. These should be developed in conjunction with the new Board of Directors and submitted to Council for approval at the earliest opportunity. Given the specific concerns expressed in the past regarding expenses of board members, it may be prudent for the City to request that the by-laws include a policy on reimbursement of board members' expenses. It is recommended that the Board of Directors develop corporate by-laws for approval by Council and include specifically a policy requiring submission of receipts for reimbursement of out-of-pocket expenses for board members.

One of the initial duties of the shareholder is to appoint the auditor of the corporation. Ernst & Young are currently the auditors for the Toronto Hydro-Electric Commission and for the City. To maintain continuity for the first year of operation, it is recommended that Council appoint Ernst & Young, Chartered Accountants as the first auditor of the Toronto Hydro Corporation and its subsidiaries.

It is the norm for a corporation to hold an annual shareholders' meeting where required decisions are made and the financial reports are received. City of Toronto Council represents the shareholder, but the shareholder in this case is considered one entity and any votes cast by the shareholder are really one vote. A shareholder meeting can be any meeting of Council. In order for City Council to carry out the shareholder's obligations, the following process is envisioned at this time:

- The Board of Directors puts the questions to the City

- City staff recommend decisions for Council approval

- Council debates the issues and makes a decision

- A City proxy (the City Clerk) conveys the decisions of the shareholder to the Board of Directors

It is recommended that the City Clerk be named the voting proxy for the City as shareholder to convey to the Board of Directors any decisions made by Council respecting the Toronto Hydro Corporation.

(5) Board Latitude and Controls

Beyond the approvals required of the shareholder as stated above, the Board of Directors would be given full authority to make individual business decisions and further develop the corporate structure and financing required to implement its business plans. At all times, the Board will be expected to act in accordance with a Shareholder Direction which will be approved by Council.

However, Council must be assured on an on-going basis that the business is performing according to direction and in the best interests of the City and the corporation's other stakeholders. It is recommended that the following control mechanisms be implemented in addition to any regulatory requirements of the Ontario Energy Board and the right of Council to replace any or all members of the Board of Directors at any time:

(a) an annual business plan be reviewed by the City Chief Financial Officer to ensure consistency with the City's overall financial and strategic expectations as outlined in the Shareholder's Direction from time to time and the CFO report any irregularities to Council with a recommendation for appropriate action;

(b) quarterly reports be submitted to the City CFO and annual consolidated financial statements be submitted by the Board of Directors to Council; and

(c) the City Chief Financial Officer and City Auditor or their designates be granted unrestricted access to the books and records of the corporation and subsidiaries during normal business hours.

(6) Asset Transfer and Financial Structure

The new Toronto Hydro Corporation will be a private corporation owned by the City of Toronto and not an agency of the City. As such, it is a business investment whose shares can be sold or used to earn a profit for the investor. A Transfer By-Law is necessary to transfer the Toronto Hydro assets and liabilities from the City to the new corporation. In exchange for these assets, the City will receive consideration in whatever form it chooses, which may include cash, shares, and debt to the City.

The corporation will be required to pay amounts equivalent to corporate income taxes to the Provincial Government, as does any other private corporation. Although consumer rates and cost of power will be driven by market forces on pricing, the rates applicable to distribution of electricity to all consumers by the monopoly will be subject to regulation by the OEB. Although regulations concerning the distribution rates are not yet available, it is anticipated that the OEB will permit the distribution rates to cover operating costs, interest on a commercial debt/equity ratio, and a commercially acceptable profit margin. The rationale is that even the regulated monopoly is a business enterprise that should operate as a commercial business and remain attractive to commercial investors. Evidence of this direction can be found in the proposed rates for the Province's own distribution company, Ontario Hydro Services Company, which includes an operational 60/40 debt/equity ratio and a return on equity of 9.35%.

The City should expect an income from Toronto Hydro because it is a business investment rather than an agency and:

(i) a reasonable return history will maintain the value of the corporation in case the City wishes to take in future investment partners or sell part or all of its shares at some future point. The corporation must remain an attractive business investment;

(ii) the City could have sold the company and invested the proceeds or reduced its own debt and therefore should not forego returns which would have otherwise been available; and

(iii) the requirement of a return will encourage the corporation to be as efficient as possible to meet the City expectations as well as invest in growing the businesses.

Every taxable corporation strives to minimize its tax liability. Capital cost allowance (depreciation) and debt interest are both deductions from net income for tax purposes. These deductions should be maximized in order to minimize taxes payable. Capital cost allowance is a function of the level of capital assets owned and represents the deemed usage of those assets on an annual basis. It is not actually an outflow of cash. However, the actual capital investments may be an outflow of cash, but are not deductible for tax purposes.

In order to minimize income taxes and maximize return to the City while providing Toronto Hydro sufficient cash to cover capital investments required, it is proposed that the City divide its investment in Toronto Hydro between debt and equity. No actual cash passes between the City and Toronto Hydro regarding the debt; the value of the equity is reduced accordingly.

The following hypothetical example illustrates the benefits of this split between debt and equity in two corporations with precisely the same operations and capital investment:

With Debt to

Without Debt Shareholder

Equity $1,000,000,000 $400,000,000

Debt to Shareholder 600,000,000

Operating Income $130,000,000 $130,000,000

Depreciation (50,000,000) (50,000,000)

Interest Expense (30,000,000)

Net Income Before Tax 80,000,000 50,000,000

Tax at 40% (32,000,000) (20,000,000)

Net Income After Tax 48,000,000 30,000,000

Return on Equity 4.8% 7.5%

Province gets 32,000,000 20,000,000

Shareholder gets (interest + 50% divid.) 24,000,000 45,000,000

Corporation retains:

Contribution to Retained Earnings 24,000,000 15,000,000

Cash from depreciation 50,000,000 50,000,000

The advantages of dividing the investment in Toronto Hydro into debt to the City and equity shares are:

(1) The city is guaranteed an income stream regardless of the performance of the corporation and beyond the discretion of the Board of Directors.

(2) Debt can be sold to the market at any time to realize new money to the City if the need arises without diluting the City's ownership interest in Toronto Hydro.

(3) Debt interest payable to the City reduces the corporate income taxes payable to the Province in favour of before-tax payments to the City. Debt payments to the City, therefore, may be more lucrative to the City than after-tax dividends.

(4) The value of the corporation is improved through a reasonable and commercially acceptable debt/equity ratio because it generates a higher rate of return on equity.

(5) The average cost of capital is lower with debt than without. Without debt, greater revenues would be required to sustain the same level of capital investment.

The financial advisors to the City and Toronto Hydro have indicated that a debt level of 60% of the value of the corporation is reasonable for the type of business and its risk profile and is an acceptable level to maintain a good credit rating. It is recommended that the City's consideration upon transfer of the assets to Toronto Hydro consist of 40% equity and 60% debt to the City.

The City is required to transfer to Toronto Hydro all of the assets used in the generation, distribution, or sale of electricity, including peripheral services. At present, Toronto Hydro has a cash surplus and surplus properties. Much of this surplus was generated as a result of amalgamating the six former municipal utilities. Surpluses could be retained by the City without impairing the corporation's ability to carry on business. It is recommended that the City retain cash deemed as surplus to the immediate needs of Toronto Hydro and any surplus properties which may be useful or sellable by the City. The list of surplus assets to be retained by the City is included as Schedule E in the attached Transfer By-Law.

Toronto Hydro currently has an outstanding long term debt of approximately $80 million which the City has debentured on behalf of Toronto Hydro. Under the legislation, the City is not permitted to transfer any outstanding City debentures to Toronto Hydro. This debt will be included in the overall new debt as part of the consideration for the transfer of assets. These liabilities are listed in Schedule F in the attached Transfer By-Law.

(7) Financial Expectations

For any investment, the investor desires the maximum return on investment. It is generally held that the level of return is commensurate with the level of risk to be assumed. If higher rates of return are required, some degree of risk is expected. However, the City manages its investments on behalf of the City of Toronto ratepayers and is expected to be conservative in its use of funds and the risks that it assumes.

To control the level of debt and risk in investments, the new Toronto Hydro's distribution company should be expected to maintain a credit rating of A (low) or better. This constraint will ensure the corporation's continued conservatism and low-risk profile.

In addition, the City should encourage Toronto Hydro to continue its capital maintenance program to ensure that the distribution assets maintain their value and ensure the reliability of the distribution service. The corporation should be permitted to invest in these assets without shareholder approval up to a reasonable ceiling.

For the competitive businesses, the Board of Directors will be expected to conduct business according to the strategic business plan. Any significant deviations from the initial plan should be forwarded to Council for information.

Rates

Under the new market design, the consumer rate will be composed of several different charges by several different companies. A redistribution of the charges is expected to occur over the next few years as competitive forces work on the charges by generators and retailers and the distribution companies are recapitalized. The Provincial government is also adding a surcharge direct to consumers to be used to repay the stranded debt. Beginning in 2001, Toronto Hydro will be subject to payments in lieu of corporate income taxes. This added expense will require an upward adjustment to the distribution charge.

The income level of the distribution company is directly related to the distribution rates to be charged. The higher the rate, the higher the income level. However, the distribution rate will be capped by regulation of the OEB. This will protect consumers from unduly rising distribution rates. The distribution rates comprise only about 15% of the total consumer charges. If all other components of the consumer rate remained the same, an increase of 10% in the distribution charge would equate to only 1.5% increase in consumer rates which is less than $1 on an average monthly homeowner bill.

At the same time, the cost of power from the generators, which comprises a much more significant percentage of the consumer rate, is expected to decline for Toronto consumers due to competitive influences. Therefore, any increases in distribution rates are expected to be offset by declines in the cost of power from generators.

Rates for the competitive retail business will be regulated by the market. Free competition usually forces rates down.

It should be noted that all of the above influences will occur in 2001. For 2000, the consumer rate structure will be set as in the past except that the OEB will approve the rate rather than Ontario Hydro.

Dividend Policy

The Board of Directors of any company has the authority to determine the amount of dividends it will pay to its shareholders. The City as sole shareholder, however, can outline its expectations for dividend disbursements.

There are a number of ways in which a dividend policy can be expressed. It is common practice to express a dividend in terms of a percentage of the net income. The percentage may vary depending on the capital needs of the business. For instance, a company requiring substantive cash for capital investment may provide a low dividend payout, whereas a company with lower capital needs may establish a dividend policy using higher percentages. Generally, some of the net income is retained within the company as retained earnings.

Because some items on the income statement are not cash items (depreciation), net income does not represent clearly the cash available or required for working capital. Another approach to defining the dividend policy is to determine annually what cash is available, what is needed for maintenance, working capital and strategic investments, and distribute the balance or a high percentage of the residual cash to the shareholder.

It would also be appropriate to set a separate dividend policy for each of the businesses. However, since the competitive businesses are not currently in operation, investment is required in the early years to develop these businesses. No significant dividend is expected from the competitive businesses in the first few years.

Dividends of the distribution company are payable to its shareholder, the Toronto Hydro Corporation. The Toronto Hydro Corporation will immediately pay 2/3 of this dividend to the City as its shareholder and will retain the balance. This retained portion will initially be used to fund the development of the competitive subsidiary.

It is recommended that initially, the financial expectations be stated as follows:

(a) the distribution company maintain a financial structure and risk profile that will achieve a credit rating of A (low) or higher;

(b) annual capital expenditures for the distribution company which are significantly in excess of the normal maintenance requirements be approved by Council;

(c) the distribution company be authorized to set distribution rates in accordance with the regulations forthcoming from the OEB; and

(d) the quarterly dividend paid to the City be equal to 2/3 of the increase in cash of the distribution company after allowances have been made for operating and capital needs, the balance being retained by Toronto Hydro for investment in its competitive business.

(8) Disposition of City Proceeds from Toronto Hydro

Under the proposed financial arrangement, the City should expect to receive a significant amount of Toronto Hydro's surplus cash in 1999 and interest and dividends in 2000 and later. A planned approach to the disposition of these proceeds needs to be determined.

The Debt Proceeds:

The municipal credit rating agencies are watching carefully how the City makes use of its investment in Toronto Hydro. The City's credit rating has been under pressure, having been recently put on notice of review of its AAA rating by the Canadian Bond Rating Service. A reduction in the credit rating can make it more expensive to issue future debt.

Forecasts of debt and debt service costs indicate a rapid rise over the next ten years unless mitigating actions are identified. By applying the debt proceeds (i.e. interest payments) received from Toronto Hydro against City debt service costs, it helps to ameliorate the situation.

Some aspects of the recapitalization will be dependent on the future actions of the OEB. In addition, the terms of the debt to the City have not yet been determined. The debt could be perpetual debt where the balance remains stable and only interest payments are made. Perpetual debt guarantees a long-term interest payment stream, but does not provide any principal repayment. Alternatively, debt principal could be repaid through a normal amortization of principal. This approach increases the annual obligation of Toronto Hydro to the City, but will end at some point when the debt is repaid.

If debt principal is to be repaid or if the City converts the Toronto Hydro debt to market debt, then principal repayment or proceeds from monetization should be directly applied to City debt. In this way, overall debt on a consolidated basis remains the same. Through responsible application of the proceeds to offset or reduce the City's debt obligations, the credit rating is supported. Proceeds from principal repayment should not be used to finance increased capital expenditures, nor should debt principal repayments be allocated to fund program expenditures in the City's operating budget because the City should not come to rely on a temporary source of funds for these purposes.

The Dividends:

Dividends also form part of the income stream resulting from capital investment. If Toronto Hydro had been sold, the proceeds would likely have gone to repay the City debt or to finance capital. Dividends therefore, should also be applied to reduce the City's capital obligations. Dividends are not guaranteed and tend to fluctuate in amount, depending on the profitability of Toronto Hydro. Until the dividend becomes a predictable source of income, it should also be applied to the City's debt reduction through the capital current contribution vehicle. Once there is a predictable dividend income stream, capital from current increases could be reliably funded, reducing operating budget pressures.

It is recommended that the proceeds of the debt and dividends from Toronto Hydro be used toward the existing City capital obligations and not be used to increase City operating expenses.

(9) Next Steps:

It is proposed that the new companies be incorporated immediately and the transfer of assets take place on July 1, 1999. This will permit the companies sufficient time to organize and prepare their operations for the opening of the competitive market in 2001, In addition, it sets in place the necessary structures which enable the City to begin receiving dividends and interest payments from Toronto Hydro in 2000. For administrative simplicity, however, staff will be transferred as of January 1, 2000.

The attached Transfer By-Law reflects asset values as at December 31, 1998, the date of the most recent audited financial statements. Actual values as of July 1, 1999 will not be known until several weeks after the quarter-ending when all necessary adjustments have been processed. It is proposed and allowed for in the Transfer By-Law that the City CFO in consultation with Toronto Hydro's CFO adjust the values in the schedules attached to the By-law to reflect the values as at July 1, 1999 when the information comes available.

The legislation requires that the value of assets transferred be at fair market value. The determination of fair market value may be impacted by Provincial regulations which are not yet available. For purposes of this transfer, the fair market value has been deemed to be book value. When the regulations come available, a further adjustment may be necessary. The terms of the attached Transfer By-Law authorize the City CFO to make this adjustment.

There is one technical legal issue still being discussed with Provincial officials as at the date of this report. Since the City of Toronto is the first municipality to proceed with the incorporation and transfer of assets, it is not yet clear what sequence of transfers is most acceptable in order to effect the transfer of assets to the subsidiaries through the holding company. This issue will be resolved in time for a technical amendment to the By-Law prior to Council's consideration of this matter.

It is recommended that the Strategic Policies and Priorities Committee endorse in principle the terms of the Shareholder Direction and Transfer By-Law as attached in Appendices 1 and 2 of this report and that, if necessary, the City Solicitor finalize the form of these documents for approval by Council.

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Incorporation of Toronto Hydro Corporation - Appendix 1

CITY OF TORONTO

SHAREHOLDER DIRECTION

RELATING TO

TORONTO HYDRO CORPORATION

July 1, 1999

Prepared by:

Smith Lyons

Suite 5800, Scotia Plaza

40 King Street West

Toronto M5H 3Z7

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TABLE OF CONTENTS

Page

Article 1 Interpretation

1.1 Definitions

1.2 Calculation of Time

1.3 Regulatory Matters

Article 2 Objectives And Principles

2.1 Purposes

2.2 Shareholder Objectives

2.3 Principles

Article 3 Business Of Toronto Hydro

3.1 Business of Toronto Hydro

3.2 Business of the Distribution Company

Article 4 Operation And Control

4.1 Board of Directors and Responsibilities6

4.2 Board of Directors of Subsidiaries

4.3 Qualifications of Directors

4.4 Vacancies

4.5 Term

4.6 Conflict of Interest Policy

4.7 Confidentiality

4.8 Remuneration

Article 5 Shareholder Matters

5.1 Decisions of the Shareholder

5.2 Matters Requiring Shareholder Approval under the OBCA

5.3 Other Matters Requiring Shareholder Approval

Article 6 Reporting

6.1 Business Plan

6.2 Quarterly Reports

6.3 Access to Records

6.4 Audit

6.5 Accounting

6.6 Annual Financial Statements

Article 7 Financial Performance

7.1 Financial Performance

7.2 Credit Rating

7.3 Debt Financing

7.4 Dividend Policy

7.5 Operation Policy

7.6 Amendments

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SHAREHOLDER DIRECTION

WHEREAS Toronto Hydro Corporation (the "Corporation") is a corporation existing under the Business Corporations Act (Ontario);

AND WHEREAS the City of Toronto (the "Shareholder") is the beneficial owner of all of the issued shares of the Corporation;

AND WHEREAS the Corporation and the Subsidiaries (together, "Toronto Hydro") are the successors to the business of Toronto Hydro Electric Commission;

AND WHEREAS Toronto Hydro's business (the "Business") is integral to the well-being and infrastructure of the City of Toronto;

AND WHEREAS the Business is subject to the provisions of the Electricity Act, 1998 and the Ontario Energy Board Act, 1998 being Schedules A and B, respectively, to the Energy Competition Act, 1998, S.O. c.15, as such statutes may be amended or re-enacted from time to time;

AND WHEREAS the Shareholder wishes to establish certain principles of governance relating to Toronto Hydro;

NOW THEREFORE THIS DIRECTION WITNESSES:

ARTICLE 1

INTERPRETATION

1.1 Definitions

In this Direction, in addition to the terms defined in the recitals, the following terms will have the meanings set out below:

"Associate" means a person that is associated with the Corporation or any Subsidiary as such relationship is defined in the OBCA;

"Board" means the board of directors of the Corporation;

"body corporate" means a firm, partnership, unincorporated association, joint venture, body corporate, corporation, bank, trust, pension fund, union, governmental agency, board, tribunal, ministry or commission or other legal entity of any kind whatsoever, but excludes an individual or natural person;

"Business Plan" means a five year business plan and budget for the Corporation and the Subsidiaries prepared and approved in accordance with Section 6.1;

"Chair" means the director of the Corporation appointed as Chair of the Board by the Board upon the nomination by the Shareholder from time to time;

"Distribution Company" means any one or more Subsidiaries that carries on the business described in Section 3.2 and that owns any distribution system, structures, equipment or property used for that purpose;

"Distribution Company Cash Flow" means the increase (decrease) in cash of the Distribution Company, including cash provided by (used in) operating activities, investing activities and financing activities but before deducting the Distribution Company Dividend, as calculated and presented in the Corporation's unconsolidated audited annual Financial Statements;

"Distribution Company Dividend" has the meaning given to it in Section 7.4;

"Financial Statements" means, for any particular period, audited or unaudited (as stipulated in this Direction), consolidated or unconsolidated (as stipulated in this Direction), comparative financial statements of the Corporation consisting of not less than a balance sheet, a statement of income and retained earnings, a statement of changes in financial position, a report or opinion of the Auditor (in the case of audited Financial Statements) and such other statements, reports, notes and information prepared in accordance with generally accepted accounting principles (consistently applied) and as are required in accordance with any applicable law;

"Lien" means any mortgage, hypothec, assignment, encumbrance, lien or security interest, regardless of form, that secures the payment of any indebtedness or liability or the observance or performance of any obligation;

"OBCA" means the Business Corporations Act (Ontario), as such statute may be amended or re-enacted from time to time;

"person" means an individual, a natural person or a body corporate;

"Regulator" means the Ontario Energy Board, the Independent Electricity Market Operator and each other governmental or regulatory authority having jurisdiction over Toronto Hydro;

"Subsidiary" means, with respect to the Corporation, any body corporate of which more than 50% of the outstanding securities of any class carrying exercisable voting rights are beneficially owned, directly or indirectly, by the Corporation, and includes any body corporate in like relation to a Subsidiary;

"third party" means a person who deals at arm's length (as interpreted by subsection 251(1) of the Income Tax Act (Canada)) with the Corporation or the Subsidiaries.

1.2 Calculation of Time

In this Direction, a period of days will be deemed to begin on the first day after the event which began the period and to end at 5:00 p.m. (Toronto time) on the last day of the period. If, however, the last day of the period does not fall on a business day, the period will terminate at 5:00 p.m. (Toronto time) on the next business day.

1.3 Regulatory Matters

In the event of any conflict between any approval or direction or other requirement of the Shareholder under this Direction and any decision, order or policy of any Regulator, the decision, order or policy of the Regulator shall govern and Toronto Hydro will at all times comply with any decision, order or policy of the Regulator whether or not an approval or direction has first been given in respect thereof by the Shareholder under this Direction. For greater certainty, Toronto Hydro will not seek any order from any Regulator for any matter that would require the approval of the Shareholder under this Direction without first giving notice of its intention to seek such an order to the Shareholder.

ARTICLE 2

OBJECTIVES AND PRINCIPLES

2.1 Purposes

The purposes of this Direction are as follows:

(a) subject to the Board's authority to manage or supervise the management of the business and affairs of the Corporation, to provide the Board with the Shareholder's fundamental principles regarding the Business;

(b) to inform the residents of the City of Toronto of the Shareholder's fundamental principles regarding the Business; and

(c) to set out the accountability, responsibility and relationship between the Board and the Shareholder.

2.2 Shareholder Objectives

The Shareholder's objectives in connection with its relationship with Toronto Hydro are as follows:

(a) the value of Toronto Hydro be maintained or increased;

(b) the Shareholder's income stream from Toronto Hydro be comparable to the Shareholder's estimated financial benefit if Toronto Hydro had been sold as a going concern;

(c) Toronto Hydro's consumers not be unduly impacted by the succession by Toronto Hydro of Toronto Hydro Electric Commission; and

(d) environmental impacts related to Toronto Hydro be improved.

2.3 Principles

The following principles will govern the operations of Toronto Hydro:

(a) The Business is integral to the well-being and the infrastructure of the City of Toronto. The Corporation recognizes that it is in the best interests of Toronto Hydro and the community of stakeholders whom the Business affects that Toronto Hydro conduct its affairs:

(i) on a commercially prudent basis;

(ii) in a manner consistent with the energy policies established by the Shareholder from time to time;

(iii) in accordance with the financial performance objectives of the Shareholder as set out herein.

(b) Toronto Hydro will provide, through the Distribution Company, a reliable, effective and efficient electricity distribution system.

(c) Distribution rates applicable to customers of the Distribution Company will be set by the Board in accordance with the rates fixed by the Ontario Energy Board from time to time.

(d) The Business is at all times subject to such licences, codes, policies, rules, orders, interim orders, approvals, consents and other actions of any Regulator.

(e) Toronto Hydro will provide its services with an emphasis on customer orientation and satisfaction.

(f) Toronto Hydro will operate in a safe and environmentally-responsible manner.

(g) Toronto Hydro will promote energy conservation and environmental responsibility.

(h) The Board is responsible for determining and implementing the appropriate balance among the foregoing principles and for causing Toronto Hydro to conduct its affairs in accordance with the same.

ARTICLE 3

BUSINESS OF TORONTO HYDRO

3.1 Business of Toronto Hydro

Subject to the ongoing ability of Toronto Hydro to meet the financial objectives of the Shareholder set out in this Direction and the ability of the Board to demonstrate the same, Toronto Hydro, except for the Distribution Company, may engage in any of the following business activities permitted by the Ontario Energy Board Act, 1998:

(a) selling (i) through the Corporation, (ii) through a third party, (iii) through a Subsidiary, or (iv) through a combination of the foregoing, electricity to every person connected to the distribution system of the Distribution Company;

(b) owning, operating or having an ownership interest in an electricity generation facility;

(c) retailing electricity;

(d) distributing or retailing gas or any other energy product which is carried through pipes or wires to the user;

(e) business activities that develop or enhance the ability of Toronto Hydro to carry on any of the activities contemplated by subsections 3.1 (c) or (d) or subsection 3.2 (b);

(f) business activities, the principal purpose of which is to use more effectively the assets of the distribution system of the Distribution Company, including, without limiting the generality of the foregoing, meter installation and reading services, and billing services;

(g) managing or operating a public utility or sewage services;

(h) renting or selling hot water heaters;

(i) providing services relating to improving energy efficiency; and

(j) using the real property that Toronto Hydro has the right to use for the purpose of providing telecommunications services, or entering into agreements with any third party, including Subsidiaries, authorizing such third party or Subsidiaries to use such real property for the purpose of providing telecommunications services.

3.2 Business of the Distribution Company

The Distribution Company may engage only in the following business activities:

(a) selling (i) directly, (ii) through a third party, (iii) through a Subsidiary, or (iv) through a combination of the foregoing, electricity to every person connected to the distribution system of the Distribution Company;

(b) transmitting or distributing electricity;

(c) business activities, the principal purpose of which is to use more effectively the assets of the distribution system of the Distribution Company, including, without limiting the generality of the foregoing, meter installation and reading services, and billing services;

(d) using the real property that the Distribution Company has the right to use for the purpose of providing telecommunications services, or entering into agreements with any third party, including Subsidiaries, authorizing such third party or Subsidiaries to use such real property for the purpose of providing telecommunications services.

ARTICLE 4

OPERATION AND CONTROL

4.1 Board of Directors and Responsibilities

Subject to any matters requiring approval of the Shareholder pursuant to this Direction, the Board will supervise the management of the business and affairs of the Corporation, including the following specific matters:

(a) establishing appropriate reserves consistent with sound financial principles and the financial performance objectives set out herein;

(b) approving any dividend payment or distribution of capital in excess of the payments provided for in Section 7.4;

(c) selecting bankers and other financial institutions and establishing all banking authorities; and

(d) appointing the officers of the Corporation and nominating the individuals to be appointed senior officers of the Subsidiaries.

4.2 Board of Directors of Subsidiaries

Subject to any matters requiring approval of the Shareholder pursuant to this Direction, the business and affairs of the Subsidiaries will be managed or supervised by their respective boards of directors. The Corporation will elect the directors of the Subsidiaries from among the directors of the Corporation.

4.3 Qualifications of Directors

A majority of the Board and the board of directors of each Subsidiary will be residents of Canada. In electing directors to the Board the Shareholder will give due regard to the qualifications of candidates, including:

(a) experience or knowledge with respect to:

(i) public utility commissions or boards of major corporations or other commercial enterprises;

(ii) corporate finance;

(iii) corporate governance;

(iv) market development;

(v) large system operation and management;

(vi) urban energy industries;

(vii) public policy issues and laws relating to Toronto Hydro and the electricity industry; and

(viii) environmental matters, labour relations and occupational health and safety issues;

(b) commercial sensitivity and acumen,

(c) independence of judgment, and

(d) personal integrity.

4.4 Vacancies

If a member of the Board ceases to be a director for any reason, the Shareholder will fill the vacancy created thereby as soon as reasonably possible. If a member of the board of directors of any Subsidiary ceases to be a director for any reason, the Corporation will cause the vacancy to be filled by another director of the Corporation as soon as reasonably possible.

4.5 Term

The term of office for a director who is not a member of the City of Toronto Council will be three years or until his or her successor is elected. The term of office for a director who is a member of the City of Toronto Council will be eighteen months or until his or her successor is elected. The term of the first directors of the Corporation who are members of the City of Toronto Council will be deemed to begin on the later of (i) June 14, 1999 and (ii) the date of incorporation of the Corporation, and to end on November 30, 2000. For greater certainty, any director may stand for re-election to the Board at the expiry of his or her term.

4.6 Conflict of Interest Policy

The directors and officers of the Corporation and the Subsidiaries will strictly abide by the requirements of the OBCA and the Corporation in respect of conflicts of interest, including any requirements in respect of disclosure and abstention from voting.

4.7 Confidentiality

The Shareholder and the directors and officers of the Corporation and the Subsidiaries (each a "Receiving Party") will ensure that no confidential information of the Shareholder or Toronto Hydro is disclosed or otherwise made available to any person, except to the extent that:

(a) disclosure to a Receiving Party's employees or agents is necessary for the performance of any Receiving Party's duties and obligations under this Direction;

(b) disclosure is required in the course of judicial proceedings or pursuant to law; or

(c) the confidential information becomes part of the public domain (other than through unauthorized disclosure by the Receiving Party).

4.8 Remuneration

The remuneration of the members of the Board for their respective services as directors will be as determined by the Shareholder from time to time. Initially, each director of the Corporation will be paid $12,500 per annum for his or her services, plus $1,000 for each meeting of the Board attended. Notwithstanding the foregoing:

(a) directors of the Corporation who are members of the City of Toronto Council will receive no remuneration; and

(b) the Chair will be paid a total of $75,000 per annum.

ARTICLE 5

SHAREHOLDER MATTERS

5.1 Decisions of the Shareholder

The following will apply to any approvals or decisions that the Shareholder must provide:

(a) all approvals and decisions will be made in writing signed by the authorized signatory of the Shareholder; and

(b) no approval will be given unless the Corporation has given reasonable advance notice in writing of the need for approval and has provided such information as is reasonably necessary for the Shareholder to make an informed decision regarding the subject matter requiring approval.

5.2 Matters Requiring Shareholder Approval under the OBCA

In accordance with the provisions of the OBCA, neither the Corporation nor any Subsidiary will, without the approval of the Shareholder:

(a) amend its articles or make, amend or repeal any by-law;

(b) amalgamate (except for an amalgamation with one or more Subsidiaries), apply to continue as a body corporate under the laws of another jurisdiction, merge, consolidate or reorganize, or approve or effect any plan of arrangement, in each case whether statutory or otherwise;

(c) take or institute proceedings for any winding up, arrangement, reorganization or dissolution;

(d) create new classes of shares or reorganize, consolidate, subdivide or otherwise change its outstanding securities;

(e) sell or otherwise dispose of, by conveyance, transfer, lease, sale and leaseback, or other transaction, all or substantially all of its assets or undertaking;

(f) change the Auditor;

(g) make any change to the number of directors comprising the Board;

(h) enter into any transaction or take any action that requires shareholder approval pursuant to the OBCA.

5.3 Other Matters Requiring Shareholder Approval

Without the approval of the Shareholder the Distribution Company will not:

(a) provide any financial assistance, whether by loan, guarantee or otherwise, to any person;

(b) create, incur or assume any unsecured indebtedness that, by its terms or by any other agreement, ranks higher than any indebtedness of the Distribution Company held by the Shareholder while the promissory note of the Corporation or the Distribution Company issued pursuant to clause 4-1(B)(b)(ii) of By-law No. [x-1999] (the "Promissory Note") is held by the Shareholder;

(c) create any Lien on its assets while the Promissory Note is held by the Shareholder, other than:

(i) any Lien in favour of the Shareholder;

(ii) Liens securing purchase money obligations, trade debts or other liabilities incurred in the ordinary course of business (other than in relation to the borrowing of money) if the aggregate principal amount of such obligations does not exceed $10,000,000 at any time;

(iii) Liens securing credit facilities created or incurred for the purpose of providing operating financing for day-to-day working capital requirements of the Distribution Company if the aggregate principal amount of such credit facilities does not exceed $100,000,000 at any time;

(iv) Liens held by any governmental authority that have not at the time been filed or registered against the title to the Distribution Company's assets or served upon the Distribution Company pursuant to law or that relate to obligations of the Distribution Company that are not due or delinquent;

and without the approval of the Shareholder, neither the Corporation nor any Subsidiary will:

(d) provide any financial assistance, whether by loan, guarantee or otherwise, to any director or officer of the Corporation or of any Subsidiary or Associate;

(e) make any capital expenditures in an amount exceeding in aggregate $170,000,000 in any fiscal year in connection with the distribution system of the Distribution Company or any person;

(f) acquire any interest in the distribution system, undertaking or securities of a distributor (as defined in the Electricity Act, 1998) operating outside of the municipal boundaries of the City of Toronto;

(g) invest funds in publicly-traded securities other than government debt, Canadian chartered bank or Canadian corporate securities rated less than A/R-1 (low) (or its equivalent) by CBRS Inc. or Dominion Bond Rating Service Limited;

(h) enter into any agreement, commitment or investment that provides recourse to the assets of the Corporation or the Distribution Company or creates any encumbrance, lien, security interest or recourse in favour of any third party in such assets.

For greater certainty, in this Section 5.3, the term "financial assistance" does not include remuneration paid in the normal course of business to directors, officers or employees, including honoraria, wages, salaries or bonuses, or any reimbursement for expenses arising from such persons' duties.

ARTICLE 6

REPORTING

6.1 Business Plan

Not later than 60 days prior to the end of each fiscal year, the Board will approve and submit to the Finance Department of the Shareholder (the "Finance Department") a business plan for the next five fiscal years (the "Business Plan"). The Business Plan will be prepared on a consistent basis with the Business Plan then in effect. The Corporation will carry on its business and operations in accordance with the Business Plan which will include, in respect of the period covered by such plan:

(a) the strategic direction and any new business initiatives which Toronto Hydro will undertake;

(b) an operating and capital expenditure budget for the next fiscal year and an operating and capital expenditure projection for each fiscal year thereafter, including the resources necessary to implement the draft business plan;

(c) the projected annual revenues and profits for each fiscal year for the Corporation and each of the Subsidiaries;

(d) pro forma consolidated and unconsolidated financial statements, including projected dividend payments to the Shareholder;

(e) an acquisition budget setting forth the nature and type of capital expenditures proposed to be made in the following fiscal year, supported by explanations, notes and information upon which the budget was based;

(f) energy conservation programmes and environmental plans, including the level of commitment to renewable energy and co-generation;

(g) any material variances in the projected ability of any business activity to meet or continue to meet the financial objectives of the Shareholder; and

(h) any material variances from the Business Plan then in effect.

6.2 Quarterly Reports

Within 45 days after the end of each fiscal quarter, the Board will prepare (on a consistent basis with the previous fiscal quarter) and submit to the Finance Department a quarterly report. The quarterly report will include, in respect of the immediately preceding fiscal quarter:

(a) quarterly unaudited consolidated and unconsolidated Financial Statements;

(b) such explanations, notes and information as is required to explain and account for any variances between the actual results from operations and the budgeted amounts set forth in the current Business Plan, including any material variances in the projected ability of any business activity to meet or continue to meet the financial objectives of the Shareholder;

(c) information that is likely to materially affect the Shareholder's financial objectives or energy policies;

(d) information that is likely to materially affect customers' perceptions or opinions regarding Toronto Hydro;

(e) information regarding any matter, occurrence or other event which is a material breach or violation of any law; and

(f) any such additional information as the Shareholder may specify from time to time.

6.3 Access to Records

The duly appointed representatives of the Shareholder (as approved by report to the Council of the City of Toronto from time to time) shall have unrestricted access to the books and records of the Corporation and the Subsidiaries during normal business hours. Such representatives shall treat all information of Toronto Hydro with the same level of care and confidentiality as any confidential information of the Shareholder.

6.4 Audit

The Corporation's consolidated and unconsolidated Financial Statements will be audited annually. The first auditor of the Corporation is Ernst & Young, Chartered Accountants, (the "Auditor").

6.5 Accounting

The Corporation will, in consultation with the Auditor, adopt and use the accounting policies and procedures which may be approved by the Board from time to time and all such policies and procedures will be in accordance with generally accepted accounting principles and applicable regulatory requirements.

6.6 Annual Financial Statements

The Board will cause the Auditor to deliver, as soon as practicable and in any event within 90 days after the end of each fiscal year, the audited consolidated Financial Statements of the Corporation for consideration by the Shareholder.

ARTICLE 7

FINANCIAL PERFORMANCE

7.1 Financial Performance

The Board will be responsible for ensuring that Toronto Hydro meets the financial performance standards set out in this Article 7.

7.2 Credit Rating

The Distribution Company shall maintain a financial structure that will achieve a rating of A (low) (as defined by CBRS Inc.) or higher on senior debt securities on or before December 31, 2001.

7.3 Debt Financing

The Distribution Company will optimize its debt financing in accordance with the provisions of this Direction, in particular, subsection 2.3(a), Section 7.2 and subsection 7.5(c).

7.4 Dividend Policy

Subject to any law, the Distribution Company will pay to the Corporation a quarterly cash dividend (the "Distribution Company Dividend") as follows:

(a) The Distribution Company Dividend will be the greater of $0 and the Distribution Company Cash Flow adjusted for changes in cash balance to meet the Distribution Company's ongoing operational requirements.

(b) Subject to subsections 7.4(d) and (e), the Distribution Company will pay the Distribution Company Dividend on the last day of each of the Distribution Company's fiscal quarters based upon the Distribution Company Cash Flow stated in the operating and expenditure budget in the Business Plan then in effect (the "Projected Distribution Company Cash Flow").

(c) Upon receipt, the Corporation will immediately pay two-thirds of the Distribution Company Dividend to the Shareholder as a cash dividend.

(d) After the last quarterly payment of the Distribution Company Dividend for any fiscal year, if the audited annual Financial Statements for such past fiscal year reveal that the actual Distribution Company Cash Flow was different than the Projected Distribution Company Cash Flow, the first quarterly payment for the immediately following fiscal year shall be adjusted to reflect such actual Distribution Company Cash Flow.

(e) Notwithstanding the foregoing, the obligation to pay the Distribution Company Dividend will begin on January 1, 2000 and the first payment thereof will be made on March 31, 2000.

The amount of the cash dividend paid by the Corporation to the Shareholder may be subject to adjustment by the Shareholder from time to time based on the financial requirements of the Shareholder or the Corporation.

7.5 Operation Policy

Toronto Hydro will:

(a) employ the most efficient cost structure available for like businesses;

(b) mandate the creation and implementation of cost reduction programs to ensure that distribution costs are minimized; and

(c) maximize return on the Shareholder's equity.

7.6 Amendments

This Direction may be amended solely at the discretion of the Shareholder. The Shareholder will provide prior written notice to the Board of any proposed amendments to this Direction.

DATED at Toronto this ______ day of _______________, 1999.

THE CITY OF TORONTO
By:

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Incorporation of Toronto Hydro Corporation - Appendix 2

Authority: Strategic Policies and Priorities Committee Report No. 10, Clause 1, adopted by Council on June 9, 1999

Enacted by Council:

CITY OF TORONTO

Bill No.

BY-LAW No. - 1999

To transfer the employees, assets, liabilities, rights and obligations of the Toronto Hydro-Electric Commission and the City of Toronto associated with the generation, distribution, transmission and retailing of electricity and associated business activities to Toronto Hydro Corporation, Toronto Hydro-Electric System Limited and Toronto Hydro Energy Services Inc., Business Corporations Act (Ontario) corporations to be incorporated under Section 142(1) of the Electricity Act, 1998 and Sections 71 and 73 of the Ontario Energy Board Act, 1998.

WHEREAS under Section 145(1) of the Electricity Act, 1998 the Council may make by-laws transferring employees, assets, liabilities, rights, and obligations of the City of Toronto (the "City") or of a commission or other body through which the City generates, transmits, distributes or retails electricity, to a Business Corporations Act corporation incorporated under Section 142 of the Electricity Act, 1998;

AND WHEREAS the City generates, transmits, distributes and retails electricity through the Toronto Hydro-Electric Commission;

AND WHEREAS Council is authorizing the incorporation of Toronto Hydro Corporation, Toronto Hydro-Electric System Limited and Toronto Hydro Energy Services Inc. (collectively, the "Corporations") under Section 142(1) of the Electricity Act, 1998 and Sections 71 and 73 of the Ontario Energy Board Act, 1998 for the purpose of generating, transmitting, distributing or retailing electricity and associated business activities and the incorporation of any further Subsidiaries necessary for carrying out any such activities;

The Council of the City of Toronto HEREBY ENACTS as follows:

1.1 Definitions.

As used in this By-law, the following terms shall have the meanings indicated:

A. ACT - The Electricity Act, 1998, and any regulations thereunder.

B. ASSETS - Except for Excluded Assets, all assets, interests, property, rights and undertakings, registered or unregistered, secured or unsecured, of the Commission and the City held or used by either of them for the purpose of generating, distributing, transmitting or retailing electricity and carrying on associated business activities on the Effective Date, including the following:

(1) Cash, Accounts Receivable - All of the cash on hand, and all accounts receivable of the Commission including without limitation, all customer and trade accounts, notes receivable, book debts and other debts due or accruing to the Commission and the benefits of all security and security deposits for such accounts and debts.

(2) Computer Hardware and Software - All computer hardware and software, including all rights under licences and other agreements or instruments relating thereto.

(3) Contracts, Rights - The full benefit of all franchise, licence or management agreements and all other contracts, commitments, rights, choses in action, benefits, arrangements, understandings, and agreements, written or oral, to which the Commission is a party or otherwise including:

(a) All written or oral contracts, agreements, commitments, undertakings, rights and arrangements.

(b) All forward commitments to the Commission for supplies or materials entered into in the usual and ordinary course of business whether or not there are any written contracts with respect thereto.

(4) Employee Agreements: All contracts, agreements, and commitments in respect of Employees as at the Effective Date to which the Commission is a party or by which it is bound, including:

(a) All collective agreements.

(b) All contracts of employment.

(5) Employee Plans: All employee benefit plans, pension plans, bonus or incentive plans, employee medical insurance and disability plans and savings plans.

(6) Goodwill: The goodwill of the Commission, including:

(a) The exclusive right of any of the Corporations to represent themselves as carrying on a business in continuation of and in succession to the Commission and the right to use any words indicating that their business is so carried on.

(b) All records of sales, customer lists, customer data and supplier lists of or used by the Commission.

(7) Insurance Policies - The full benefit of all policies of insurance of the Commission.

(8) Intellectual Property - All of the right, title, benefit and interest of the Commission in and to all registered trade marks, trade names, brand names, patents and copyrights, all unregistered trade marks, trade names and copyrights and all patent applications, trade mark registration applications and copyright registration applications, both domestic and foreign, owned or made by the Commission, including without limitation those described in Schedule A.

(9) Inventories - All inventories and supplies including, but without limitation, all finished goods, work in progress, raw materials, production and shipping supplies and maintenance items and all other materials and supplies on hand to be used or consumed in the production of products.

(10) Know-How - All patterns, plans, designs, research data, copyrights, trade secrets and other proprietary know-how, processes, drawings, technology, unpatented blueprints, flow-sheets, equipment and parts lists and descriptions and related instructions, manuals, data, records and procedures and any and all data owned or used by the Commission, and all licences, agreements and other contracts and commitments relating to any of the foregoing to which the Commission is a party.

(11) Licences and Permits - The full benefit of all licences, registrations, permits, consents, quotas, approvals, certificates, and other authorizations including those described in Schedule B.

(12) Machinery and Equipment - All machinery and equipment, metering and measurement devices, hot water heaters and appliances and all goods and chattels and other personal property and all tools, handling equipment, furniture, furnishings and accessories.

(13) Plant, Building, Fixtures - All plant, buildings, structures, erections, improvements, appurtenances and fixtures (including fixed machinery and fixed equipment) conduits, pipes, poles, wires, rods, cables, fibres and other apparatus, devices, appliances and equipment, materials, works, transformer stations, transformers, vaults, transmission lines, distribution lines, ducts, pipelines, fittings, apparatus, meters, wheresoever situate on property owned by the Commission or the City, on private property and on public property.

(14) Prepaid Expenses - All pre-paid expenses and deposits the benefits of which will accrue to any of the Corporations.

(15) Real Property Interests - All lands, premises, freehold and leasehold property interests, mortgages, charges, agreements, notices of agreements, debentures and security interests which create an interest in land, liens, easements, rights of way, licences, and rights to use or occupy real property, and all other rights or interests therein and fixtures thereon, including the relevant interests in the assets listed in Schedule C.

(16) Records - All personnel records, inspection records and all other records, books, documents and data bases relating to Employees, the Assumed Liabilities, the business of the Commission, or to the Assets in the possession or under the control of the Commission.

(17) Reserves - The portion of any reserve fund established pursuant to section 33 of the Development Charges Act, 1997 that relates to development charges collected in respect of electrical power services, and the portion of any reserve fund referred to in section 63 of the Development Charges Act, 1997 that relates to development charges collected in respect of electrical power services, as set out in Schedule D.

(18) Vehicles - All trucks, cars and vehicles of all kinds.

(19) Warranties - The full benefit of all warranties and warranty rights, implied, express or otherwise, against manufacturers, suppliers or sellers which apply to any of the Assets and the net realizable value of any warranty claims relating to the Assets outstanding as of the Effective Date.

C. ASSUMED LIABILITIES - Other than Excluded Liabilities, all of the debts, liabilities and obligations of the Commission.

D. BODY CORPORATE - A firm, partnership, unincorporated association, joint venture, body corporate, corporation, bank, trust, pension fund, union, government agency, board, tribunal, ministry, or commission or other legal entity of any kind whatsoever, but excludes an individual or natural person.

E. COMMISSION - The Toronto Hydro-Electric Commission, established under Section 9 of the City of Toronto Act, 1997, and deemed a commission under Part III of the Public Utilities Act.

F. EFFECTIVE DATE - The date for each transfer set out in Section 6-1.

G. EMPLOYEES - All full-time and part-time, union and non-union, employees and officers of the Commission, including all trainees, and probationary employees, on the Effective Date.

H. EXCLUDED ASSETS - The assets described in Schedule E.

I. EXCLUDED LIABILITIES - The liabilities described in Schedule F.

J. OBCA - The Business Corporations Act (Ontario), and any regulations thereunder.

K. OEB - The Ontario Energy Board.

L. OEBA - The Ontario Energy Board Act, 1998, and any regulations thereunder.

M. PERSON - Any individual, a natural person or body corporate.

N. SUBSIDIARY - With respect to Toronto Hydro Corporation, any Body Corporate of which more than 50 percent of the outstanding securities of any class carrying exercisable voting rights are beneficially owned, directly or indirectly, by or for Toronto Hydro Corporation, and includes any Body Corporate in like relation to a Subsidiary.

1-2. Interpretation.

In this By-law, unless a contrary intention appears:

A Words importing the singular shall include the plural and vice versa and words importing gender shall include all genders.

B. If any section of this By-law is invalid or ultra vires the City it shall not affect the operation of the remaining portions of this By-law.

C. The following Schedules are attached and form part of this By-law:

(1) Schedule A - Intellectual Property

(2) Schedule B - Licences and Permits

(3) Schedule C - Real Property Interests

(4) Schedule D - Reserves

(5) Schedule E - Excluded Assets

(6) Schedule F - Excluded Liabilities

(7) Schedule G - Allocation of Consideration

D. This by-law is binding on the City, the Commission, the Corporations and all other Persons.

E. In accordance with the Act, this By-law applies despite any general or special act or any rule of law, including any act or rule of law which requires notice or registration of transfers; provided, however, the Corporations may register such documents, instruments and agreements, including certified copies of this By-law, as may be necessary or desirable in order to evidence or confirm such transfers.

F. Where the context requires, Corporations shall include any Subsidiaries.

G. Under Subsections 9(4) and (5) of the City of Toronto Act, 1997, all of the assets and liabilities and other rights and obligations relating to the distribution and supply of electricity of the public utility commissions of the former municipalities of East York, Etobicoke, North York, Scarborough, Toronto and York were vested in the City under the control and management of the Commission.

H. Under Subsections 9(2) of the City of Toronto Act, 1997, the Commission has all the powers, rights, authorities and privileges of a municipal public utility commission under Part III of the Public Utilities Act.

2-1. Incorporation.

A. The incorporation of Toronto Hydro Corporation, Toronto Hydro-Electric System Limited and Toronto Hydro Energy Services Inc., under the OBCA, to continue the generation, transmission, distribution and retailing of electricity and associated business activities of the Commission and the incorporation of any further Subsidiaries necessary for any such activities is authorized.

B. Any common shares or other securities issued by any of the Corporations incorporated pursuant to this By-law shall be issued upon such incorporation in the name of the City.

2-2. Corporate, Shareholder Administration.

A. The City, in its capacity as initial shareholder of the Corporations, shall execute and deliver any shareholder agreement, direction or declaration to provide for the organization, management and administration of the Corporations and any further Subsidiaries, in a form approved by Council of the City.

B. The City and the Commission shall execute and deliver to the Corporations, where necessary, in form suitable for registration, recording and filing with such public authorities as may be reasonably required by the Corporations, any bills of sale, assignments, instruments of transfer, assurances, consents and other documents necessary to effectively transfer to the Corporations all the City and the Commission's right, title and interest in the Assets.

3-1. Transfer to Corporations.

A. All the Assets and Assumed Liabilities of the Commission and the City and Employees associated with the generation, distribution, transmission and retailing of electricity and associated business, except for the Excluded Assets and Excluded Liabilities, are transferred to and assumed by the Corporations in accordance with the Act and this By-law as set out in Subsections 3-1B, C, D, E and F.

B. On the Effective Date the Assets and Assumed Liabilities of the Commission and the City used in connection with owning and operating an electricity transmission and distribution system are transferred to and assumed by Toronto Hydro-Electric System Limited.

C. On the Effective Date the Assets and Assumed Liabilities of the Commission and the City used in connection with electricity generation, co-generation, district cooling or other energy services are transferred to and assumed by Toronto Hydro Energy Services Inc.

D. On the Effective Date the Employees of the Commission used in connection with owning and operating an electricity transmission and distribution system are transferred toToronto Hydro-Electric System Limited.

E. On the Effective Date the Employees of the Commission used in connection with electricity generation, co-generation, district cooling or other energy services are transferred to Toronto Hydro Energy Services Inc.

F. Subject to an order of the OEB granting leave under Section 86 of the OEBA, the City shall, and shall be deemed to, have transferred as of the Effective Date all of the voting securities in Toronto Hydro-Electric System Limited and Toronto Hydro Energy Services Inc., which were issued to the City under Subsections 4-1B and D of this By-law, to Toronto Hydro Corporation in consideration of the issuance to the City of voting securities by Toronto Hydro Corporation.

G. Any of the Assets and Assumed Liabilities of the Commission and the City and Employees which are transferred to the Corporations pursuant to this By-law may be transferred to any Subsidiary on such terms and for such consideration as the directors of the transferring Corporation may from time to time approve, subject to Subsection 4-1H of this By-law. The City, the Commission or the Corporations may enter into any agreements or other documents required to evidence the transfers.

H. The Employees transferred to the Corporations, in accordance with Sections 145 and 147 of the Act, shall cease to be Employees of the Commission from and including the Effective Date and shall thereupon be employees of one of the Corporations.

I. Excluded Assets and Excluded Liabilities will not be transferred to the Corporations.

J. Despite any other provision of this By-law or the Electricity Act, 1998, if any of the Assets shall not be assignable, or shall only be assignable with the consent or approval of any other third party, the City or the Commission shall:

(1) use all efforts in co-operation with the assignee Corporation to secure the consent required in connection with those assignments and all costs of obtaining any consent will be paid by the assignee Corporation; and

(2) pending the effective transfer thereof, hold all rights or entitlements that the City or the Commission has thereto in trust for the exclusive benefit of the assignee Corporation provided that the assignee Corporation shall pay, perform and discharge all obligations arising or accruing with respect thereto during such period.

4-1. Consideration and Financing.

A. All costs and expenses incurred or to be incurred by the City and the Commission and all Provincial taxes incurred or payable in connection with the transfer of the Assets shall be borne by the Corporations and the Corporations shall reimburse the City and the Commission on demand for any such costs, expenses or taxes.

B. The Assets transferred to Toronto Hydro-Electric System Limited under Subsection 3-1B of this By-law shall be transferred at their respective fair market values on the Effective Date. The fair market value of the Assets shall be deemed to be book value on the Effective Date subject to adjustment under Subsections 4-1H and 5-1C of this By-law.The consideration payable by Toronto Hydro-Electric System Limited for the Assets transferred under Subsection 3-1B shall be satisfied as follows:

(1) by the assumption by Toronto Hydro-Electric System Limited of the Assumed Liabilities referred to in Subsection 3-1B; and

(2) as to the balance by:

(a) the issuance and allotment to the City of 1,000 fully paid and non-assessable common shares of Toronto Hydro-Electric System Limited having an ascribed value equal to 40 percent of such balance which amount shall be added to the stated capital account for such shares, and

(b) the issuance by Toronto Hydro-Electric System Limited to the City of a promissory note having a principal amount equal to 60 percent of such balance, such note to be due and payable on December 31, 2000, to be non-interest bearing until December 31, 1999; and to bear interest at an effective rate of 6% per annum from January 1, 2000 until the City chooses to redeem or until December 31, 2000, whichever comes first, calculated and payable quarterly and to be in form and content satisfactory to the Treasurer of the City.

C. On or before the maturity date of the promissory note referred to in Subsection 4-1B(2)(b), the City, after consultation with Toronto Hydro Corporation, may exchange the said promissory note for one or more debt instruments of Toronto Hydro-Electric System Limited having a form and content satisfactory to the City as evidenced by the written acceptance by the Treasurer of the City.

D. The Assets transferred to Toronto Hydro Energy Services Inc. under Subsection 3-1C of this By-law shall be transferred at their respective fair market values on the Effective Date. The fair market value of the Assets shall be deemed to be book value on the Effective Date as determined under Subsections 4-1H and 5-1C of this By-law. The consideration payable by Toronto Hydro Energy Services Inc. for the Assets transferred under Subsection 3-1C shall be satisfied as follows:

(1) by the assumption by Toronto Hydro Energy Services Inc. of the Assumed Liabilities referred to in Subsection 3-1C; and

(2) as to the balance by the issuance and allotment to the City of 1,000 fully paid and non-assessable common shares of Toronto Hydro Energy Services Inc. having an ascribed value equal to the aforesaid balance which amount shall be added to the stated capital account for such shares.

E. The transfer under Subsection 3-1F shall be deemed to have been effected at the aggregate fair market value of such voting securities as determined by the City Treasurer and an amount equal to such aggregate fair market value shall be added to the stated capital account of the shares of Toronto Hydro Corporation.

F. The consideration payable by the Corporations shall be allocated among the Assets as set out in Schedule G and the Corporations shall report the transfer of the Assets in accordance with the provisions of Schedule G.

G. The Reserves are transferred to Toronto Hydro-Electric System Limited to be used only to pay for capital costs in respect of electrical power services for which the Reserves were collected.

H. The fair market value of the Assets, and the amount of the Assumed Liabilities transferred under this By-law to the Corporations on the Effective Date, shall be determined by the Treasurer of the City in consultation with the Corporations.

I. The Corporations shall be bound by, assume, pay, satisfy, discharge, observe, perform and fulfil, and indemnify and save harmless the City from and against the Assumed Liabilities assumed by them respectively.

4-2. Transfer Exemptions.

A. Any transfer of Assets under this By-law is exempt from land transfer tax and retail sales tax under Section 159 of the Act.

B. Any transfer of Assets under this By-law is exempt from the provisions of the Bulk Sales Act (Ontario) under Section 159 of the Act.

C. Any transfer under this By-law will constitute the transfer of all or substantially all of the Assets necessary for the relevant Corporation to carry on the business transferred to it as a business. The City and the relevant Corporation, both being registered for Goods and Services Tax purposes, undertake to sign the election provided for in Section 167 of the Excise Tax Act and the relevant Corporation shall file the election in accordance with the provisions of that Section so that the transfer is not subject to Goods and Services Tax.

5-1. Consideration Adjustment.

A. The fair market value of the Assets transferred under Subsection 3-1B of this By-law is dependent upon the permitted rate of return on equity and the rates that the OEB will allow Toronto Hydro-Electric System Limited to charge for the distribution of electricity under the OEBA.

B. The fair market value of the Assets transferred and the consideration payable in Subsections 4-1B and D of this By-law may be adjusted as a consequence of any OEB rate order for the year 2000 or subsequent years and any valuation of the Assets subsequent to the enactment of this By-law.

C. Any consideration or revised consideration payable under this By-law shall be determined by the Treasurer of the City in consultation with the Corporations.

D. All necessary adjustments to the consideration payable under this By-law shall have the same effect as if they were made on the Effective Date

6-1. Effective Date of Transfer.

A. The Effective Date of the transfers set out in Subsections 3-1B, C and F is July 1, 1999.

B. The Effective Date of the transfers set out in Subsections 3-1D, E and H is January 1, 2000.

ENACTED AND PASSED this               day of                              , A.D.

Mayor City Clerk

SCHEDULE A

INTELLECTUAL PROPERTY

(Trademarks, Official Marks, Patents, Copyrights, and Business Names)

Applicant/Registrant/Owner Application

No.

Registration

No.

Trademarks
TORONTO HYDRO Toronto Electric Commissioners 699,404 437,077
TH TORONTO HYDRO & DESIGN Toronto Electric Commissioners 699,406 448,192
CITISOURCE Toronto Hydro-Electric Commission 876,217 Not registered
THE CITISOURCE Toronto Hydro-Electric Commission 878,412 Not registered
CITISOURCE TORONTO Toronto Hydro-Electric Commission 878,413 Not registered
CITISOURCE (US) Toronto Hydro-Electric Commission 75/511,523 Not registered
POWERSHIFT Toronto Electric Commissioners 699,405 416,682
Official Marks
TORONTO HYDRO Toronto Electric Commissioners 905,223
TORONTO HYDRO & DESIGN Toronto Electric Commissioners 905,222
CITISOURCE Toronto Hydro-Electric Commission 909,905
TORONTO ENERGY CORPORATION Toronto Electric Commissioners 908,410
POWERSHIFT Toronto Electric Commissioners 905,216
COMMITTED TO QUALITY The Public Utilities Commission of the City of Scarborough 906,210
S DESIGN The Public Utilities Commission of the City of Scarborough 906,697
YORK HYDRO & DESIGN The Hydro-Electric Commission of the City of York 904,640
EAST YORK HYDRO & DESIGN The Hydro-Electric Commission of the Borough of East York 905,366
NYH DESIGN North York Hydro 901,391
Patents
CABLE SPLICING DEVICE Arthur Bevis; Rickey Butler; Toronto Electric Commissioners Canadian -2,213,643
British - 9717661.4
German -

196 81 253.4

Connector For Use in Cable Splices (same as Cable Splicing Device) U.S. -

393,645

U.S. Patent No. US 5,527,191
Copyright
SMART Planning Tool The Public Utilities Commission of the City of Scarborough 460015
Quality Assurance - Electrical Metrology North York Hydro 450074
Business Names
Toronto Hydro Toronto Hydro-Electric Commission
Toronto Hydro-Electric System Toronto Hydro-Electric Commission
Etobicoke Hydro Toronto Hydro-Electric Commission
East York Hydro-Electric Commission Toronto Hydro-Electric Commission
East York Hydro Toronto Hydro-Electric Commission
North York Hydro Toronto Hydro-Electric Commission
York Hydro Toronto Hydro-Electric Commission
Scarborough Utilities Toronto Hydro-Electric Commission
Scarborough Public Utilities Commission Toronto Hydro-Electric Commission
S.P.U.C. Toronto Hydro-Electric Commission
Scarborough PUC Toronto Hydro-Electric Commission
Trademarks

(Unregistered)

Etobicoke Hydro Logo The Hydro-Electric Commission of the City of Etobicoke
Greensource*
Our City's Source For Energy*
Toronto Hydro Logo*

*Trademark applications to be filed with CIPO by the Toronto Hydro-Electric Commission.

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SCHEDULE B

LICENSES AND PERMITS

1. Metering Certification:

Issued By: Measurement Canada

Title: Accreditation Certificate U/S - 007

Description: Permits verification and re-verification of electricity meters including compliance sampling

2. Certificate of Approval for Transport of PCBs

Issued By: Ministry of Environment

Title: Provisional Certificate of Approval No. A-840375

Description: Permits transport of PCB waste to Ontario PCB disposal sites

3. Exemption for Transport of Asbestos

Issued By: Ministry of Environment (Approvals Branch)

Title: Field Operations Exemption, as set out in correspondence dated March 23, 1998 to David Burnett

Description: Permits transport of asbestos

4. Radio Licenses

Issued By: Industry Canada

Title: Radio Licenses

Description: Various radio licenses permitting possession, installation and operation of radio equipment

5. PCB Storage Site Registrations

Issued By: Ministry of Environment

Title: 301-87A-010 for 3 Dohme Ave, East York

301-82A-028 for 10 Belfield Rd, Etobicoke

301-86A-057 for 50 Toryork Dr, North York

301-88A-032 for 2 Bicknell Ave, Toronto

301-86A-032 for 28 Underwriters Rd, Scarborough

301-96A-003 for 211 Sterling Rd, Toronto

301-94A-058 for 450 Commissioners St, Toronto

301-89A-025 for 2357 Danforth Ave, Toronto

301-85A-023 for 369 Carlaw Ave, Toronto

301-86A-023 for 532 Bay St, Toronto

301-85A-025 for 13-19 Wiltshire Ave, Toronto

Description: Various site registrations permitting storage of PCBs

6 Interim Distributor License issued to Toronto Hydro pursuant to section 129 of the Ontario Energy Board Act, 1998 (Ontario).

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SCHEDULE C

REAL PROPERTY INTERESTS

1 233 Adelaide Street East Toronto
2 660 Adelaide Street West Toronto
3 23 - 25 Basin Street Toronto
4 399 Bathurst Street Toronto
5 2500 Bathurst St. Toronto
6 532 Bay Street Toronto
7 777 Bay Street (Suites 403,405,423) Toronto
8 20 Blackburn Street Toronto
9 Bridgement Park - East Toronto
Lots 251,252 Plan M-6
10 Bridgement Park - North Toronto
Lot 259 Plan M-6
11 Bridgement Park - South Toronto
Lots 241, 246 Plan M-6
12 45 Bulwer Street Toronto
13 345 Carlaw Avenue Toronto
14 369 Carlaw Avenue Toronto
15 14 Carlton Street Toronto
16 20 Carlton Street Toronto
17 38 Cecil Street Toronto
18 327 Chaplin Crescent Toronto
19 83 Charles Street East Toronto
20 100 Cherry Street Toronto
21 281 Cherry Street Toronto
22 955 College Street Toronto
23 440 Commissioners Street Toronto
24 450 Commissioners Street Toronto
25 500 Commissioners Street Toronto
26 300 Coxwell Ave Toronto
27 2357 Danforth Avenue Toronto
28 391 Davenport Road Toronto
29 65 Dickens Street Toronto
30 730 Dovercourt Court Toronto
31 1045 Dufferin Street Toronto
32 1047 Dufferin Street Toronto
33 744 Dundas Street East Toronto
34 245 Dunn Avenue Toronto
35 390 - 400 Duplex Avenue. Toronto
(60 Eglinton Ave. W.)
36 146 Dupont Street Toronto
37 905 Dupont Street Toronto
38 652 Eastern Avenue Toronto
39 30 Edwin Avenue Toronto
40 386 Eglinton Avenue East Toronto
41 50 Eglinton Avenue West Toronto
42 85 Elm Ridge Drive Toronto
43 96 Gerrard Street Toronto
44 542 Gladstone Avenue Toronto
45 23 Granby Toronto
46 130 Hammersmith Avenue Toronto
47 37 Hanna Avenue rear Toronto
48 144 Hazelwood Avenue Toronto
49 Island Sub-Station situated in a building Toronto
located at Island Filtration Plant,
Central Island
51 2 Jane Street
52 101 Jefferson Avenue Toronto
53 1080 Kingston Road Toronto
54 2 Labatt Avenue Toronto
55 446 Lakeshore Avenue Toronto
56 885 Lakeshore Blvd E. Toronto
57 444 Logan Avenue Toronto
58 106 Lower Sherbourne Street Toronto
59 290-296 MacPherson Avenue Toronto
60 315 & 325 MacPherson Avenue Toronto
61 365 MacPherson Avenue Toronto
62 375 - 383 Madison Avenue Toronto
63 640 Millwood Road Toronto
64 394 Mount Pleasant Road Toronto
65 35 Mowat Avenue Toronto
66 19-47 Nelson Street Toronto
67 45 Oakmount Avenue Toronto
68 161 Oakwood Avenue Toronto
69 93 Ontario Street Toronto
70 740 Pape Avenue Toronto
71 61 Pelham Park Avenue Toronto
72 18 Portland Street Toronto
73 1457 Queen Street West Toronto
74 1 Rennie Terrace Rear Toronto
75 508 - 510 (518,522) Runnymede Road Toronto
76 546 Sherbourne Street (147 Isabella) Toronto
77 298 Sorauren Avenue Rear Toronto
78 242 South Kingsway Toronto
79 5 Southport Street Toronto
80 473 Spadina Crescent Toronto
81 555 Spadina Road Toronto
82 1860 St Clair Avenue West Toronto
83 165 Stephenson Avenue Toronto
84 211 Sterling Road Toronto
85 6 Strachan Avenue Toronto
86 8 Strachan Avenue Toronto
87 16 Tecumseth St. Toronto
88 120 - 124 Tecumseth St. Toronto
89 180 Wellesley Avenue Toronto
90 253 Wellington Street West Toronto
91 7 Wiltshire Avenue Toronto
92 19 Wiltshire Avenue Toronto
93 39 Wiltshire Avenue Toronto
94 137 Winona Drive Toronto
95 25 (20) Wood St. Toronto
96 2833 Yonge Street Toronto
97 Albion Road Etobicoke
Part 1, Plan 66R-10509 and
Part 3, Plan 66R-9511
98 26 Algie Avenue Etobicoke
99 1 Annabelle Drive Etobicoke
100 15 Arcot Blvd. Etobicoke
101 55 Ashbourne Drive Etobicoke
102 Attwell MS Etobicoke
Part 4, Plan 64R-6352
103 10 Belfield Road Etobicoke
104 121 Belfield Road Etobicoke
105 10 Bellman Avenue Etobicoke
106 132 Berry Road Etobicoke
107 196 Bethridge Road Etobicoke
108 124 Birmingham Street Etobicoke
109 4237 Bloor Street Etobicoke
110 756 Brown's Line Etobicoke
111 16 Burlingame Road Etobicoke
112 Burnhamthorpe Road . Etobicoke
Pt Lot 20, Conc 1
113 790 Burnhamthorpe Road Etobicoke
114 70 Cannon Road Etobicoke
115 139 Carlingview Drive Etobicoke
116 367 Carlingview Drive Etobicoke
117 56 Centennial Park Road Etobicoke
118 90 Cordova Avenue (1276 Islington Avenue) Etobicoke
119 59 Dalegrove Crescent Etobicoke
120 174 Dixon Road Etobicoke
121 298 Dixon Road Etobicoke
122 1 Duffield Road Etobicoke
123 64 Dunsany Crescent Etobicoke
124 62(66) Elmhurst Drive Etobicoke
125 194 Evans Avenue Etobicoke
126 61 Fieldway Road Etobicoke
127 59 Glen Agar Drive Etobicoke
128 74 Guided Court Etobicoke
129 2 Guiness Avenue Etobicoke
130 39 Gunton Drive Etobicoke
131 33 Hardwick Court Etobicoke
132 267 Humberline Road Etobicoke
133 63 Hunting Ridge Etobicoke
134 913 Islington Avenue Etobicoke
135 1066 Islington Avenue Etobicoke
136 1442 Islington Avenue Etobicoke
137 1720 Islington Avenue Etobicoke
138 2310 Islington Avenue Etobicoke
139 95 Kingsview Blvd Etobicoke
140 Kipling Avenue, Hollywood MS Etobicoke
Pt Lot 6, Plan 1990
141 2130 Kipling Avenue Etobicoke
142 74 Leading Road Etobicoke
143 34 Legion Road Etobicoke
144 1 Longfeild Road Etobicoke
145 21 Manstor Road Etobicoke
146 2094 Martingrove Road Etobicoke
147 2236 Martingrove Road Etobicoke
148 25 McLachlan Drive Etobicoke
149 119 Mill Road Etobicoke
150 121 Mimico Avenue Etobicoke
151 8 Newell Court Etobicoke
152 88 North Queen Street Etobicoke
153 318 Prince Edward Drive Etobicoke
Pt Lots 4,5,6 Plan 2318
154 2 Rampart Road Etobicoke
155 395 Rathburn Road Etobicoke
156 54 Reid Manor Etobicoke
157 307 Rexdale Blvd Etobicoke
158 Royal York Road Etobicoke
Centre Drive MS,
Pt Lot 54, Plan 965
159 714 Royal York Road Etobicoke
160 1179 Royal York Road Etobicoke
161 294 Scarlett Road Etobicoke
162 746 Scarlett Road Etobicoke
163 78 Shaver Avenue South Etobicoke
164 17 Sinclair Street Etobicoke
165 153 Taysham Crescent Etobicoke
166 395 The East Mall Etobicoke
167 360 The West Mall Etobicoke
168 510 The West Mall Etobicoke
169 191 The West Way Etobicoke
170 55 (63B) Thistletown Blvd Etobicoke
171 40 Torrington Drive Etobicoke
172 18 Warbeck Place Etobicoke
173 40 Watercliff Road Etobicoke
174 127 Westmore Drive Etobicoke
175 130 Westrose Avenue Etobicoke
176 Windsor Street Etobicoke
Pt Lots 177,180 Plan 164
177 27 Wingrove Hill Etobicoke
178 Part Lot 25, Conc 1 Etobicoke
179 Lot 192, Plan 5719 Etobicoke
180 3706 Bathurst Street North York
181 2065 Bayview Avenue North York
182 130 Bond Avenue North York
183 18 Brenthall Avenue North York
184 1 Broadlands Blvd North York
185 165 Burbank Drive North York
186 941 Caledonia Road North York
187 283 Churchill Avenue North York
188 25 Combermere Drive North York
189 639 Conacher Drive North York
190 38 Cummer Avenue North York
191 39 Deauville Lane North York
192 Don Mills Centre MS, North York
Pt Blk A, Plan 4545
193 907 Don Mills Road North York
194 223 Elmhurst Avenue North York
195 635 Fenmar Drive North York
196 175 Goddard Street North York
197 169 Goulding Avenue North York
198 29 Heathrow Drive North York
199 65 Hobson Avenue North York
200 1950 Islington Avenue North York
201 4206 Jane Street North York
202 Jonesville Rd Allowance, North York
Part 1, Plan 64R-11703
204 802 Lawrence Avenue East North York
205 1857 Leslie Street North York
206 5733 Leslie Street North York
207 1 Lochinvar Street North York
208 4 Milvan Drive North York
209 58 Northdale Road North York
210 22 Norton Avenue North York
211 2756 Old Leslie Street North York
212 105 Orfus Road North York
213 85 Pemberton Avenue, North York
Lots 125,126 Plan 2233
214 12 Rivalda Road North York
215 522 (520) Rustic Road North York
216 1508 Sentinel Road North York
217 144 (148) Shelborne Avenue North York
218 1629 Sheppard Avenue West North York
219 Sheppard Avenue West North York
Pt Lot 16, Conc 3, W/Yonge
220 1 Signet Drive North York
221 180 (184) Sloane Avenue North York
222 40 & 50 Toryork Drive North York
223 282 Upper Highland Crescent North York
224 11 Victory Drive North York
225 77 Whitbread Crescent North York
226 186 Willowdale Avenue North York
227 228 Wilson Avenue North York
228 1304 Wilson Avenue North York
229 405 Woburn Avenue North York
230 1 Wyvern Road North York
231 4044 Yonge Street North York
232 5800 Yonge Street North York
233 1255 York Mills North York
234 331 York Mills Road North York
235 150 August Avenue Scarborough
236 25 Bellamy Road North Scarborough
237 119 Bellamy Road North Scarborough
238 510 Bellamy Road Scarborough
239 694 Birchmount Road Scarborough
240 1047 Birchmount Road Scarborough
241 54 Brian Avenue Scarborough
242 90 Brimley Road Scarborough
243 96 Brimley Road Scarborough
244 531 Brimley Road Scarborough
245 657 Brimley Road Scarborough
246 816 Brimley Road Scarborough
247 1221 Brimley Road Scarborough
248 1994 Brimley Road Scarborough
249 3 Bernadine Street Scarborough
250 2 Canadian Road Scarborough
251 29 Canadian Road Scarborough
252 110 Canadian Road Scarborough
253 Canadine Road SS, Pt Lot 1, Plan 3711 Scarborough
254 Cavehill Crescent, Blk B, Plan 5317 Scarborough
255 191 Centennial Road Scarborough
256 61 Civic Road Scarborough
257 Clonmore Drive MS, Lot 9-11, Plan 1756 Scarborough
258 57 Comstock Road Scarborough
259 590 Coronation Drive Scarborough
260 39 Craighton Drive Scarborough
261 243 East Avenue Scarborough
262 47 Elinor Avenue Scarborough
263 159 Ellesmere Road Scarborough
264 867 Ellesmere Road Scarborough
265 156 Fallingbrook Road Scarborough
266 3200 Finch Avenue East Scarborough
267 37 (51) Galloway Road Scarborough
268 30 Greencedar Circuit Scarborough
269 104 Hollis Avenue Scarborough
270 754 (750) Huntingwood Drive Scarborough
271 750 Kennedy Road Scarborough
272 3065 Kingston Road Scarborough
273 3077 Kingston Road Scarborough
274 3359 Kingston Road Scarborough
275 3375 (3365) Kingston Road Scarborough
276 4446 Kingston Road Scarborough
277 2355 Lawrence Ave. E. Scarborough
278 3782 (3780) Lawrence Ave. E. Scarborough
279 74 Livingston Road Scarborough
280 2505 Livingston Road Scarborough
281 10 Lupin Dr. Scarborough
282 46 Malamute Crescent Scarborough
283 212 Markham Road Scarborough
284 940 Markham Road Scarborough
285 705 McCowan Rd. Scarborough
286 486 Midland Avenue Scarborough
287 676 Midland Avenue Scarborough
288 1365 Midland Avenue Scarborough
289 2753 Midland Avenue Scarborough
290 720 Military Trail Scarborough
291 105 Millikin Blvd Scarborough
292 160 Morningside Avenue Scarborough
293 351 Morrish Road Scarborough
294 83 North Bonnington Avenue Scarborough
295 150 Orton Park Road Scarborough
296 300 Palmdale Drive Scarborough
297 Pharmacy Avenue, Pt Lot 4, Plan 1079 Scarborough
298 895 Progress Avenue Scarborough
299 22 Rosscowan Street Scarborough
300 4 Saunders Road Scarborough
301 1000 Scarboro Golf Club Road Scarborough
302 3762 Sheppard Avenue East Scarborough
303 Sinnott Road, Pt Lot 3, Plan 3759 Scarborough
304 3135 St. Clair Ave. E. Scarborough
305 52 (50) Sunderland Crescent Scarborough
306 60 Tiffield Road Scarborough
307 7 Trestleside Grove Scarborough
308 28 Underwriters Road Scarborough
309 46 Wexford Blvd Scarborough
310 Blk F, Plan 7725 Scarborough
311 Part Lot 28, Conc 4 Scarborough
312 Lot 415, Plan 2050 Scarborough
313 Pt Lots 45,46,47 Plan 319 Scarborough
314 327 Cedarvale Avenue East York
315 258 Cosburn Avenue East York
316 465A Cosburn Avenue East York
317 171 Dawes Road East York
318 30 Fairside Avenue East York
319 10 Gamble Avenue East York
320 Pottery Road SS, Pt Lot 13, 14 Con 2 East York
321 410 Gilbert Avenue York
322 Roselawn Avenue at Dansbury Avenue, Part York
of Dansbury Avenue, Plan 1775

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SCHEDULE D

RESERVES

Development Charges Fund The funds received are for specific growth related capital works to be undertaken.

Reserve Deposits Represents amounts received from third parties which are restricted as to use for specific purposes.

Construction Deposit Collateral Funds Advance deposits received from contractors

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SCHEDULE E

EXCLUDED ASSETS

A. Real Property Interests

ADDRESS LOCATION TYPE DATE

AVAILABLE

ASSESSMENT

VALUE

14/18 Dyas Road North York Office/Service October 2001

$1,909,300

1530 Markham Road Scarborough Office October 2001

$5,402,000

2 Civic Centre Court Etobicoke Office April 2000

$3,531,725

2 Bicknell Avenue York Service 1999

$301,000

700 Huron Toronto Service 1998

$5,021,000

200 Madison Avenue Toronto Service 1998

$433,000

15 Rotherham Avenue York Service July 1999

$826,000

1652 Keele Street York Office April 1999

$1,148,000

175 Memorial Park East York Office April 1999

$1,053,000

3 Dohme Avenue East York Service October 1999

$588,000

325 Chaplin Crescent Toronto Service October 1999

$609,000

118A & 120 Pearl Street Toronto Lease -TDHC July 1999

$1,723,000

8270 Sheppared Avenue Scarborough Lease -Yard September 2000

$1,022,422

2756 Old Leslie Street North York Yard/Building April 2000

202,000

TOTAL

$23,769,447

B. Other

Cash in the amount of one hundred million dollars (Cdn $100,000,000.00).

Plus interest payable from July 1, 1999 through December 31, 1999 on the outstanding debentures of $76,386,000 issued by City for the benefit of Toronto Hydro.

To be adjusted to July 1, 1999

--------

SCHEDULE F

EXCLUDED LIABILITIES

Long Term Debt (Net of sinking funds) incurred by the City of Toronto on behalf of the Toronto Hydro-Electric Commission.

As at December 31, 1998:

Sinking fund debenture, due July 6, 1999

(stated rate 10.13%, effective 10.37%) $830,000

Sinking fund debenture, due November 30, 1999

(stated rate 10.00%, effective rate 10.23%) $1,134,000

Instalment debenture, due June 8, 2005

(effective rate 8.17%) $25,933,000

Sinking fund debenture, due June 28, 2006

(stated rate 7.85%, effective rate 7.96%) $25,241,000

Sinking fund debenture, due August 15, 2007


Total amount $76,386,000


--------

SCHEDULE G

ALLOCATION OF CONSIDERATION

Toronto Hydro-Electric Systems Limited
As at December 31, 1998 In $thousands
ASSETS
Current assets
Cash and investments $ 81,870
Accounts receivable 129,204
Unbilled revenue 115,860
Inventories 34,567
Other current assets 1,915
363,416
Fixed assets 1,477,118
Other assets
Deferred charges 20,670
Development charges 2,817
Other assets 5,449
28,936
Total Assets $ 1,869,470
Less: Assumed Liabilities
Current Liabilities
Due to Ontario Hydro $ 145,907
Accounts payable and accruals 68,025
Current portion of long-term liabilities 11,508
Provision for vacation pay 5,654
231,094
Long-term liabilities
Customers' advance deposits 21,455
Other deposits 4,651
Accumulated sick leave credits 13,859
Voluntary exit incentive retirement supplement 7,724
Workers' compensation benefits 5,150
Development charges fund 2,817
Provision for environmental costs 3,676
59,332
Net Transfer $ 1,579,044
Consideration:
Promissory Note 947,426
Equity 631,618
$ 1,579,044
ASSETS
Current assets
Cash and investments $ 40,000
Total Assets $ 40,000
Assumed Liabilities nil
Net Transfer $ 40,000
Consideration:
Equity 40,000
$ 40,000

To be adjusted to July 1, 1999.)

2

Resources for Access and Equity Functions and

Final Recommendations of the Task Force on

Community Access and Equity

(City Council on June 9, 10 and 11, 1999, amended this Clause by:

(1) striking out and referring Recommendation No. (2) of the Strategic Policies and Priorities Committee to the Chief Administrative Officer, with a request that he submit a report to the Policy and Finance Committee on the human resources and cost implications of the recommendations of the Task Force on Community Access and Equity, and providing clarification of the term "Employment Equity", viz.:

"(2) the adoption of the Action Plan and Final Recommendations of the Task Force on Community Access and Equity appended to the report (May 27, 1999) from Councillor Joe Mihevc, Chair, Task Force on Community Access and Equity, with the exception of Recommendations Nos. (11) and (13);"; and

(2) adding thereto the following:

"It is further recommended that:

(a) a copy of this Clause be forwarded to the Executive Committee of the Federation of Canadian Municipalities with a request that it be placed before the Standing Committee on Race Relations of the Federation of Canadian Municipalities and studied and compared with other best practice initiatives from other cities;

(b) the Federation of Canadian Municipalities be advised that the City of Toronto assigns a high priority to this work;

(c) the Executive Committee of the Federation of Canadian Municipalities be requested to consider the inclusion of Councillors Faubert, McConnell, and Shaw on the membership of its Committee on Race Relations;

(d) the report dated June 7, 1999, from the Chief Administrative Officer, be received; and

(e) the following motion be referred to the Chief Administrative Officer:

Moved by Councillor Miller:

'That Recommendation No. (48) of the Action Plan and Final Recommendations of the Task Force on Community Access and Equity be amended by adding thereto the words "and that a working group on employment equity be established as set out in Recommendation No. (21)(c)", so that such Recommendation shall now read as follows:

"(48) that the City adopt an employment equity policy to achieve a workforce which reflects the population at all occupational levels of the City and that a working group on employment equity be established as set out in Recommendation No. (21)(c)." ' ")

The Strategic Policies and Priorities Committee recommends:

(1) the adoption of the report (May 19, 1999) from the Chief Administrative Officer; and

(2) the adoption of the Action Plan and Final Recommendations of the Task Force on Community Access and Equity appended to the report (May 27, 1999) from Councillor Joe Mihevc, Chair, Task Force on Community Access and Equity, with the exception of Recommendations Nos. (11) and (13).

The Strategic Policies and Priorities Committee reports, for the information of Council, having referred Recommendations Nos. (11) and (13) of the Task Force on Community Access and Equity to the Chief Administrative Officer for report thereon to the meeting of Council scheduled to be held on June 9, 1999.

The Strategic Policies and Priorities Committee submits the following report (May 19, 1999) from the Chief Administrative Officer:

Purpose:

This report:

(a) summarizes the resource implications of the recommendations contained in the draft final report of the Task Force on Community Access and Equity; and

(b) presents an approach to the organization of administrative structures for access and equity functions in the City that accommodate the aspirations of the Task Force within the financial constraints of the corporation.

Financial Implications:

The organizational structures defined in this report can be achieved within the approved 1999 Operating Budget but require the transfer of funds for corporate access and equity services between departments as recommended in the report.

Recommendations:

It is recommended that:

(1) the corporate Access and Equity Unit work with each commissioner to define the functions and reporting relationships for the assignment of dedicated corporate access and equity staff resources to assist individual departments in meeting access and equity objectives;

(2) the staff positions that were reassigned from the pool of corporate access and equity resources to the human resources business units in 1998 be explicitly defined and function as employment equity and human rights consultants, and the Executive Director of Human Resources report to the Administration Committee on how the expertise and skills of these employment equity and human rights consultants are being used to enhance the activities of the human resources business units;

(3) the 1999 approved budget of $1,501,000.00 total gross expenditures ($1,471,000.00 total net expenditures) and 21.3 equivalent funded staff positions for Access and Equity services be transferred from the Human Resources Division in the Corporate Services Department to the Strategic and Corporate Policy Division in the Chief Administrator's Office to facilitate the transfer of program management and administration of the corporate Access and Equity Unit from the Corporate Services Department to the Chief Administrator's Office, and the 1999 Operating Budget be adjusted accordingly;

(4) once in each term of Council, the City Auditor oversee an internal audit of the performance by the corporation as a whole in achieving its access, equity and human rights goals;

(5) in order to ensure that there is a an external community perspective on the City's progress towards access, equity and human rights goals, the City organize an annual community consultation on access, equity and human rights issues that will provide input to planning, policy and program development in subsequent years;

(6) the Task Force on Community Access and Equity be requested to take this report into consideration during the preparation of its final report to Council; and

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

Council Reference:

On January 2, 6, 8 and 9, 1998, City Council adopted Report No. 1 of the Striking Committee, which established a Task Force on Community Access and Equity and appointed Councillor Joe Mihevc as its chair.

The Task Force's terms of reference were adopted as amended by Council on March 4, 5 and 6, 1998 (Special Committee to Review the Final Report of the Toronto Transition Team Report No. 3 (6)). The terms of reference described the goals and objectives of the Task Force as identifying the necessary policies, structural functions, program priorities and evaluation processes by which the City of Toronto can:

(i) strengthen civic society, and in particular empower those members of the community who face barriers to full participation in the life of the community;

(ii) take a more effective role in addressing the barriers faced by women, people of colour, Aboriginal people, people with disabilities, lesbians and gays, immigrants/refugees, different religious/faith communities;

(iii) strengthen community involvement and public participation in the decision-making processes of the municipality, particularly for equity seeking communities;

(iv) continue the City's proactive role in linking and partnering with other institutions and agencies, as well as with the community, in engaging in initiatives in support of access and equity;

(v) ensure that the contributions, interests and needs of all sectors of Toronto's diverse population are reflected in the City's mission, operation and service delivery; and

(vi) continue the City's leadership in the community as a model employer with a workforce that reflects the diversity of its residents and follows fair and equitable employment practices.

The Chair of the Task Force submitted a draft final report to the Strategic Policies and Priorities Committee on January 26, 1999.(1) The committee referred the report from the Task Force Chair to the Chief Administrative Officer and requested him to report back to the committee on the financial implications of the report.

On February 2, 3 and 4, 1999, Council extended the mandate of the Task Force to enable it to consider the Chief Administrative Officer's report in the finalization of the Task Force report.

This report responds to the request by the Strategic Policies and Priorities Committee. During the preparation of this report, staff:

(a) surveyed departments in regard to the implications of the Task Force's draft recommendations;

(b) interviewed a large sample of staff involved in access and equity activities;

(c) reviewed various written materials provided by the departments and the interim Access and Equity Unit;

(d) met with the chair of the Task Force throughout the process; and

(e) retained the services of a general management consultant to assist with the review of options for the administrative organization of access and equity functions.

Background:

Task Force Draft Recommendations:

The Draft Report of the Task Force on Community Access and Equity contains 82 recommendations. The majority of the recommendations pertain to the City's policies and programs. They propose development of specific corporate policies and positions, development or review of operational policies, and development or review of specific programs and initiatives. The primary impact of such recommendations is on the commitment of human and financial resources and on the establishment of priorities in program plans.

A number of recommendations have implications for organizational structures and processes. Recommendation 82 in the report suggests that "the City establish organizational structures and resources for access, equity and human rights:

(a) to provide policy development;

(b) to facilitate community advisory processes including committees relating to the human rights protected groups and other Committees of Council as required;

(c) to administer anti-racism, access and equity grants;

(d) to investigate human rights issues at arms length;

(e) to implement awareness and public education programs on access, equity and human rights issues;

(f) to act as resources for departments and agencies in developing and implementing action plans;

(g) to liaise with community organizations regarding emerging issues and to assist them with civic involvement;

(h) to conduct research on the needs of the human rights protected groups and to provide results to departments to use in delivering services;

(i) to monitor legislative proposals that impact on the human rights protected groups;

(j) to implement communication strategies to increase involvement and access to services;

(k) to promote the City's position to other levels of government and external bodies; and

(l) to provide advice and research to Council Committees."

Other recommendations propose that the City:

(a) establish seven city-wide community advisory committees to address priorities faced by human rights protected groups (Recommendation No. (1);

(b) permit community councils to establish geographically based access, equity and human rights working groups (Recommendation No. (2);

(c) establish an Office of Aboriginal Affairs (Recommendation No. (11);

(d) establish an Office of Disability Issues (Recommendation No. (13); and

(e) establish a Human Rights Office (Recommendation No.(57).

Discussion:

Current Resources for Access and Equity:

(a) Corporate Resources:

Prior to amalgamation, the former municipalities applied corporate resources to access and equity activities in different ways. The former Metro had dedicated staff in a corporate Access and Equity Centre. The former City of Toronto employed dedicated staff in its Equal Opportunity Program. Although the titles and precise job descriptions varied, the former North York, Scarborough and Etobicoke each had a full or part-time dedicated coordinator of race relations. Other staff, whose primary functions were not in the area of access and equity, may have provided support to access and equity activities, for example, in supporting the work of an advisory committee or by having employment equity and human rights responsibilities incorporated into their overall position.

Because of the varied organizational approaches in the former municipalities to the provision of access and equity services, achieving an accurate count of dedicated access and equity resources at the time of amalgamation was difficult. However, based on the description of staff's primary functions, it is calculated that, at the time of amalgamation, there were 36 positions whose primary purpose was the performance of corporate access, equity and human rights functions. They comprised the pool of corporate access and equity staff resources.

During 1998, a number of these positions were redeployed. Five professional staff and two administrative support staff were assigned to the Staffing, Workforce Transition, Equity and Human Rights Unit in the Human Resources Division to provide specialized employment equity and human rights services.

A further four professional staff were assigned to work as Human Resource Consultants in business units within the Human Resources Division that provide dedicated support to specific departments. These staff are able to add specialized knowledge and expertise in the area of access, equity and human rights to the business units. In addition, two administrative support staff were also redeployed from the original pool of access and equity staff to work in business units in Human Resources.

The remaining staff in the original access and equity pool were assigned to work in an interim corporate Access and Equity Unit which was also located in the Human Resources Division. During the past year 1.7 FTE positions have been deleted from this unit through attrition. The corporate Access and Equity Unit provides programs to address barriers faced by all human rights protected groups, and to assist departments in delivering programs which eliminate these barriers. It provides corporate coordination of Council's anti-discrimination policies and programs and implements awareness regarding these. The unit conducts policy development and research programs in support of the elimination of barriers faced by human rights protected groups. The unit also provides support to various advisory committees and staff working groups.

Two of the staff in the unit are dedicated to Aboriginal affairs and effectively perform the functions of an Aboriginal Affairs Office as contemplated in recommendation 11 in the Task Force's draft final report. Another staff person carries a disabilities issues portfolio, which includes the responsibilities envisaged in recommendation 13 in the draft final report. Other staff also carry portfolios including immigrant and refugee issues, gay and lesbian issues and issues regarding the status of women.

In 1999, the approved budget for the corporate Access and Equity Unit includes total net expenditures of $1.471 million ($1.501 million total gross expenditures). The approved staffing complement is 21.3 positions.

(b) Departmental Resources:

The work of the corporate access and equity staff is bolstered by staff in operating departments who are performing access and equity functions in the course of departmental delivery of programs and services. Some examples follow.

The Department of Economic Development, Culture and Tourism has a number of full-time positions dedicated to providing integrated recreational programs and services. The department estimates that approximately four full-time equivalents spread over seven positions currently are developing and coordinating adapted and integrated recreational services. Three of the positions (two in the West District and one in the North District) are full-time. Their core functions are:

(i) to provide required supports and/or adapt recreational programs to integrate persons with special needs or develop specialized programs where appropriate;

(ii) to arrange for the supports required by individuals;

(iii) to undertake special projects to increase access; and

(iv) to train staff and volunteers.

The full-time staff are also able to act as access and equity resources and advocates - for example, reviewing and advising on program and facility design, consulting and liaising with the community and agencies, mediating conflicts and potential human rights disputes, providing training and organizing and hosting special events which showcase and promote integration and participation. Additional program staff are hired as needed to provide the supports required to integrate persons with disabilities into recreational programs and to work in specialized programs.

In the Finance department, part of the job function of the Manager of Client and Support Services in the Purchasing and Materials Management Division is to provide administrative, training and outreach support to the division and its clients with respect to access issues.

The Urban Planning and Development Services Department employs an Accessibility Planner. This position assesses proposals for consistency with legislation, by-laws and City policies with respect to accessibility for elderly and disabled persons. The position has also served as a resource to other departments through the coordination of interdepartmental working groups and provision of advice.

With the exception of its Public Health Division, the Community and Neighbourhood Services Department does not identify staff positions dedicated solely to access and equity work. Rather, access and equity are integrated into all considerations and delivery of services by the department. This is reflected in the criteria for the community grants programs for which the department is responsible, the operating policies, publications, training and consultation initiatives undertaken by the various divisions. The department's five Community Development Officers work closely with community groups and agencies to develop community capacity and accessible human services.

Equal access is a general standard in the "Mandatory Services Guideline" pursuant to Section 7 of the Health Promotion and Protection Act. This standard requires Boards of Health to reduce barriers to accessing mandatory public health programs. The Board of Health is also required to integrate equal access strategies into all programs. There are approximately 2.5 full time equivalent specialized staff positions to support program staff in this regard.

Resource Implications of the Task Force Draft Recommendations:

In the course of preparing this report, staff requested each department to comment on the implications of any of the Task Force's recommendations that were relevant to them. All departments provided detailed feedback. This material is being provided to the Task Force to assist it in completing its final report.

The comments from departments indicate general support for the overall direction in which the Task Force wants the City to move. The departmental comments reveal that some of what is recommended in the Task Force's Draft Final Report is already underway. The Task Force recommendations in these instances serve to reinforce the importance of the initiatives or to ensure their continuation.

The departments' feedback also suggests, however, that implementation of recommendations, if they are adopted by Council, will have to be moderated by the availability of resources. The package of recommendations contained in the draft final report cannot be implemented immediately within current resource constraints.

The Task Force's draft final report includes various recommendations to undertake policy reviews and also to make specific program changes. Departments have pointed out that implementation would have to be phased in over time. The recommended initiatives can be built into departments' multi-year business plans to form part of a longer term work program.

Administrative Organization for Access and Equity Functions:

The extent to which the City moves successfully and willingly in the direction proposed by the Task Force will be influenced by how well equipped administratively the City is to perform access and equity functions. Simply creating a specific structure to deal with each topic area covered in the Task Force report is not the way to proceed. It is essential that the administrative organization for access and equity be approached thoughtfully and from first principles. Why should the City be interested in access and equity in the first place? Resources are scarce and there is competition among priorities. The organization of access and equity functions needs to make wise use of these scarce resources.

In reviewing the work of the Task Force on Community Access and Equity, it is important to begin by establishing broad principles and guidelines, which should influence the City's organization structures for delivering access and equity services. These principles and guidelines are drawn from two main sources - the work of the Task Force itself, and what others in the field are doing (the so-called "best practices").

General Principles and Guidelines Contained in the Task Force Report:

Throughout its consultation process, the Task Force heard that municipal government has access and equity responsibilities in four areas:

(i) as an employer;

(ii) as a provider of services and programs;

(iii) as a purchaser of goods and services; and

(iv) as a grant giving agency.

In addition, based on an assessment of the information contained in the Task Force's Draft Report, the City government has a further responsibility:

(i) as a civic leader in the area of community access and equity.

Each of these above-noted areas of municipal responsibility has a number of guiding principles as outlined below.

(1) The City as Employer:

The Task Force's Draft Report sets out the following policy principle:

"The diverse population of the City of Toronto shall be reflected and represented throughout every level of the municipal workforce, including its Agencies, Boards, Commissions and Special Purpose Bodies.

"The dignity, worth and contribution of each person shall be respected in an equitable municipal work environment."(2)

This overall policy principle translates into the following guidelines:

(i) being a "good" employer with fair and consistent work practices;

(ii) being a model employer for others to learn from; and

(iii) being a leader by setting an example of excellence in the workplace in terms of access and equity practices.

(2) The City as Provider of Services and Programs:

The policy principle proposed by the Task Force is:

"All residents shall be entitled to municipal services and programs which are racially sensitive, culturally and linguistically appropriate, gender appropriate, accommodate disability, and are adequately resourced to ensure equitable access and outcomes."(3)

This overall policy principle translates into the following guidelines:

(i) services and programs that are accessible;

(ii) services and programs that are sensitive; and

(iii) services and programs that meet identified needs.

(3) The City as Purchaser of Goods and Services:

The policy principle outlined in the Draft Report is:

"The municipality shall ensure equitable access and allocation to providers of goods and services; ensure that organizations which supply goods and services to the municipality through contractual agreements implement and maintain employment equity; and adopt anti-discrimination and anti-harassment practices."(4)

This overall policy principle translates into the following guidelines:

(i) contracts are open to all to bid;

(ii) there should be outreach to businesses owned and operated by members of human rights protected groups;

(iii) purchasing policies should address the issues of diversity and equity; and

(iv) size of contracts should be established which enable small businesses to compete.

(4) The City as Grant Giving Body:

The policy principle set out by the Task Force requires that:

"The municipality shall ensure that its financing and grants are equitably allocated to reflect the changing and differential needs of all sectors of the community in order to achieve equitable outcomes."(5)

This overall policy principle translates into the following guidelines:

(i) grant applications should include the City's anti-racism, access and equity policy as part of the evaluation process;

(ii) grants should reflect the demographics of the City; and

(iii) grants should be designed to encourage access and equity groups to apply and be eligible.

(5) The City as Civic Leader:

In 1998, Council adopted the declaration "Diversity our Strength" as the City's motto. The motto represents a fundamental value held by Council that has to permeate the entire organization. The City is faced with the task of making the motto real. How do we live up to our motto?

A commitment to the value of strength in diversity requires the municipal government to look outward to the community. This emphasizes the responsibility of the government to exercise civic leadership by facilitating and strengthening community capacity and civil society.

This responsibility is explicitly recognized by the Task Force on Community Access and Equity's discussion of principles. The Draft Report states:

"The municipality, in concerning itself with the social well-being of all its residents, shall assert a proactive role in responding to community issues, influencing public opinion and pursuing broad-based efforts in partnership with the community and other institutional sectors to address diversity issues."(6)

"The municipality shall support community-based voluntary organizations to make sure that all sectors of Toronto's diverse communities are able to effectively participate in and influence the decisions that affect their lives."(7)

This overall policy principle translates into the following guidelines:

(i) community development to be a window into the City of Toronto and out to the community;

(ii) advocacy initiatives;

(iii) education on diversity and community access and equity - what it means and how it works; and

(iv) partnerships wherever possible to take advantage of the skills and experience in the community.

From Policy Principles to Organizational Effectiveness:

The policy principles and guidelines contained in the Task Force's Draft Report provide a framework of values and corporate goals. The challenge for Toronto's municipal government lies in incorporating the idea of strength in diversity and a commitment to community access and equity as core values in all of its functions and activities.

The expression of core values and the achievement of goals lie in outcomes defined by the policy principles and guidelines described above. The principles and guidelines should be seamless and integrated into the City's operations, not isolated or marginalized. They should help to shape:

(i) the implementation of corporate and departmental policies;

(ii) the design of programs and services; and

(iii) the manner in which programs and services are delivered.

The way in which access and equity guidelines are built into the City's organizational structure will influence how this happens.

The Experience of Others in Organizational Best Practices:

All of the former municipalities that are now part of the City of Toronto were committed to access and equity. The Toronto Transition Team commended the former municipalities for their leadership in the provision of access and equity services.(8) The amalgamated City of Toronto can build on this legacy. It can also learn from the experiences in other jurisdictions.

As part of the background research for the Task Force, staff in the City's interim Access and Equity Unit compiled information on the organizational approaches to access and equity taken by jurisdictions in the United States and Great Britain.(9) A review of this material reveals the following reasons for municipal governments to provide explicit access and equity services:

(i) enhancing local democracy and accountability;

(ii) enhancing customer satisfaction;

(iii) understanding customers' needs;

(iv) using people's talents to the full;

(v) becoming an "employer of choice";

(vi) enhancing partnership with the private sector;

(vii) enhancing the relationship with other levels of government; and

(viii) avoiding the costs of discrimination.

In addition, in a study of 41 municipalities, the Commission for Racial Equality in Britain identified the following six essential organizational conditions for effective implementation of equity policies within municipal government:

(a) Commitment: - Both councillors and senior managers must bring the strongest commitment to equity, a commitment that goes beyond the generalities of policy statements on "core values" to set specific, measurable and timetabled equity objectives.

(b) Corporate advice and guidance: - Specialist advice and guidance should be provided from the centre.

(c) Resources: - All departments should get the resources they need to frame effective action plans.

(d) Delegation: - Managers should have the power to decide on the steps they need to take to achieve their targets.

(e) Equity objectives at all levels: - The achievement of equity objectives should be integral to the service or business plans of all departments, and to all service agreements and contracts with the private sector and other bodies.

(f) Effective monitoring: - All key areas of municipal practice should be monitored at both corporate and departmental levels, using accurate and reliable systems, and according to clear definitions of responsibility.

A Framework for Organizing Access and Equity Functions in the City of Toronto:

When the general policy principles and lessons from other jurisdictions are taken into account, three functional areas, each with a discrete set of activities, need to be incorporated into Toronto's administrative organization. The three areas of activity are:

(1) Departmental Activities:

This means that each department should:

(a) take responsibility for integrating access and equity core values, objectives and policies into their normal business activities;

(b) commit resources and develop explicit action plans to meet access and equity objectives; and

(c) be held accountable for integrating core values and corporate policies on diversity and equity into their services to the public and their practices as employers and purchasers and users of services.

(2) Corporate Support Functions:

Corporate resources must be available to support departments in their implementation of access and equity policies, programs and practices. This means:

(a) setting the corporate policies and standards for the City's access and equity activities;

(b) providing a focal point for internal advocacy for access and equity issues within the municipal government, including building awareness within the corporation of what access and equity means and how it is practised;

(c) undertaking specialized research and policy development;

(d) providing advice, education and training support;

(e) providing a window through which to maintain a connection to the state of access and equity in the community; and

(f) ensuring the availability of specialized supports in the areas of employment equity, human rights standards and investigations and corporate training around diversity and access and equity issues.

(3) Monitoring Functions:

This means:

(a) having in place objective mechanisms to monitor and evaluate how well the municipal government is meeting access and equity goals and objectives;

(b) monitoring and assessing the relevance of corporate activities to the state of diversity and equity in the community; and

(c) having appropriate checks and balances in place by ensuring that the monitoring function is objective and independent of both departments and providers of corporate support functions.

The foregoing three sets of activities were in place to varying degrees in the former municipalities.

Organizational Design Principles:

The following basic organizational design principles can be used to guide consideration of organizational forms to accommodate departmental, corporate support and monitoring functions with respect to the City's access and equity activities:

(1) Accountability:

(i) applies corporately and within departments;

(ii) must be strong and visible to the public;

(iii) must be based on agreed upon performance measures; and

(iv) monitoring and evaluation must be undertaken by an objective third party.

(2) Expertise:

(i) staff must be experienced in the provision of access and equity functions; and

(ii) the organization must be able to explain access and equity clearly.

(3) Consistency:

(i) this is related to how the public receives services across departments and in the City's different service districts.

(4) Accessibility:

(i) in terms of physical accessibility to the City's programs and services;

(ii) in terms of the absence of cultural and linguistic barriers to programs and services; and

(iii) geographical accessibility as issues often relate to cultural communities of interest.

(5) Building on existing networks:

(i) build on partnerships with existing community organizations and groups representing community access and equity interests.

(6) Profile:

(i) community access and equity must be visible within the Council and the civic public service;

(ii) profile is required to demonstrate the importance and priority of access and equity; and

(iii) profile is required to demonstrate to the community the value placed by the City on community access and equity.

(7) Broad direction setting:

(i) any corporate support functions should be responsible for establishing policies and directions and not for operationalizing them; and

(ii) corporate support staff are not service providers but facilitators to those with direct service responsibility.

(8) Recognizing fiscal realities:

(i) staffing levels must be accommodated within available resources and take budget reductions into account; and

(ii) must use the scarce and skilled resources of access and equity staff effectively.

These organizational design principles are consistent with the above-noted essential organizational conditions for effective implementation of access and equity policies that were identified by the Commission for Racial Equality in Britain.

Organizational Structures for the City's Access and Equity Functions:

Structure for Departmental Functions:

In June 1998, the Task Force interviewed the commissioners and senior managers in each of the City's six departments about the role of access and equity. A review of the notes from these meetings shows that the commissioners' consistent advice to the Task Force was that access and equity must be grounded organizationally:

"…within program operations and service delivery levels for it to be meaningful. This is key in gaining ownership of these issues. Access and equity should rest with line departments which should play an active role in setting realistic performance measures."(10)

"Access and Equity has to be part of the fabric of the way we do business. It has to be part of everyone's job in terms of how we treat staff and how we provide services."(11)

Locating responsibility for access and equity in departments means that departments must ensure that access and equity values and goals are part and parcel of the services they provide. Departmental responsibility for access and equity entails:

(i) developing explicit access and equity action plans;

(ii) being a good employer;

(iii) providing accessible services; and

(iv) holding staff accountable for the effective delivery of access and equity services.

Exercising these responsibilities successfully requires:

(i) staff to possess specific skills and knowledge in the area of access and equity; and

(ii) departmental resources and programs dedicated to access and equity initiatives.

In an ideal, stable and mature organization, in which access and equity core values have been internalized successfully into day-to-day operations, departmental and program staff would all possess the necessary skills and knowledge to meet access and equity objectives.

In reality, organizationally, the City of Toronto is in the midst of a period of major change. Amalgamation, service harmonization, the accommodation of Provincial downloading of service and financial responsibilities, the process of staffing up new administrative structures and the many other changes that accompany the transition from seven municipal administrations to one have presented departments with many competing challenges and priorities.

In such an environment, it is possible for access and equity objectives to fall between the cracks of change. Therefore, to ensure that access and equity policies are practised, a dedicated corporate access and equity staff resource should be assigned to work with each department. These staff will:

(i) provide general information and assistance to other staff within the department;

(ii) serve as a link to other corporate access and equity resources; and

(iii) help coordinate the preparation of access and equity action plans within the department.

Full-time, dedicated specialists should staff these positions. They will be drawn from the pool of 21.3 corporate access and equity funded equivalent positions that were approved in the 1999 Operating Budget. These resources should not be used by departments to replace other departmental staff who may be performing access and equity functions. Rather, their role as an internal advocate within the respective department to which they are assigned should be to focus the department on access and equity issues and objectives, coordinate access and equity activities across the department and facilitate linkages to other supports.

While the general nature of the support provided to departments by these staff should be consistent, the specific needs and capacity of each department are unique. Therefore it is recommended that the corporate Access and Equity Unit work with each commissioner to define the functions and reporting relationships for the assignment of dedicated corporate access and equity staff resources to meet the needs of individual departments.

Structure for Corporate Support Functions:

While the commissioners are consistent in their view that access and equity must be grounded in the departments and their own operations, they also agree on the need for corporate access and equity activities.

"Corporate functions can enable departments to understand and move ahead by providing supportive services such as training, human rights management, policy support [and] links to the community. There has to be a group within the organization charged with making sure awareness and action are taking place in all departments…The corporate function should be to build linkages to make things happen with departments, communities and Council. It should enhance the expertise and be a catalyst and have the time and resources to dedicate to this. In an ideal world, the corporate function should not be needed at all; however, it is a transitional requirement to ensure we adapt appropriately to the many changes within our community."(12)

There are two general types of corporate support functions: those that relate to the corporation's responsibilities as an employer; and those that provide policy, research and linkages to community issues, and a coordinating role within the City in terms of initiatives in the area of access and equity.

Structure for Corporate Employment Equity and Human Rights Support:

The corporation's Human Resources Division in the Corporate Services Department provides support to all departments through the development of human resource hiring and management policies and practices, assistance with the recruitment process and assistance with conflict resolution. It is appropriate that access and equity objectives and values should be integrated fully into the activities of this division.

Management of employment equity and human rights enquiries and investigations are currently incorporated into the mandate of the Staffing, Workforce Transition, Equity and Human Rights unit within the Human Resources Division. Two employment equity specialists, three human rights specialists and two program administrative assistants are located in the unit to perform these functions.

The focus of these positions is internal to the activities of the corporation as an employer. They are appropriately located. Human rights, as they are defined in the legislation go beyond access and equity to include all manner of activities relative to workplace employment. The location of employment equity and human rights specialists within the staffing unit is also consistent with the principle of having departments take responsibility for access and equity. Their location is designed to ensure that the unit focuses on these issues in its provision of support to the departments.

In addition, as noted earlier in this report, in 1998 four professional staff and two program administrative assistants were reassigned from the original pool of corporate access and equity staff resources to add an employment equity and human rights focus to the human resources business units. In order to ensure that the value of the assignment of these staff positions is maintained, it is recommended that the staff positions that were reassigned from the original pool of corporate access and equity staff resources to the human resources business units in 1998 be explicitly defined and function as employment equity and human rights consultants. It is further recommended that the Executive Director of Human Resources report to the Administration Committee on how the expertise and skills of these employment equity and human rights consultants are being used to enhance the activities of the human resources business units.

There are two potential weaknesses with the current organization for human rights enquiries and investigations. While the function's present location is satisfactory from an administrative point of view, there is concern that it is buried within a broader range of activities and therefore lacks profile. This could limit employees' and managers' use of the specialists. The second concern is that people need to feel that it is safe to approach the human rights specialists for information, advice, conflict resolution or to lodge a formal complaint. For this to happen, the human rights specialists must be able and perceived to provide unbiased advice and conduct independent and objective investigations.

To address these issues, a Human Rights Office will be created comprised of the existing human rights specialists and a program administrative assistant. The office will be identified as a distinct unit in all corporate directories. For administrative purposes, the office will continue to report to the Manager of Staffing, Workforce Transition, Equity and Human Rights. However the sole focus of the office will be on human rights. The staff will provide advice, respond to enquiries and conduct investigations. The Human Rights Office will monitor the incidence of complaints against the corporation. This activity will include monitoring complaints lodged externally with the Ontario Human Rights Commission. As part of their management of the human rights file, staff in the Human Rights Office must have the competence to develop corporate human rights policies. They will work closely with the corporate Access and Equity Unit on the development of corporate human rights policies. They will also work closely with employment equity and human rights consultants in the human resources business units and with dedicated access and equity specialists assigned to work with individual departments.

Reports on human rights investigations will be sent directly to the Chief Administrative Officer as well as to the relevant commissioner to ensure that the highest priority is attached to acting upon the findings.

Structure for a Corporate Access and Equity Office:

There is agreement by the Task Force and the Commissioners that a corporate access and equity function is necessary at this stage in the evolution of the corporation and the City. As already described, the function would provide specialist advice and guidance to departments, conduct specialized research and policy development, be an advocate within the corporation and present a corporate window to the community.

One organizational option would be to locate the corporate access and equity function within an operating department for administrative purposes. For example, the social development mandate and activities of the Community and Neighbourhood Services Department converge somewhat with corporate access and equity objectives and functions.

However, housing these support functions in an operating department would give the appearance of ownership of the functions by one particular department. There needs to be a much more visible demonstration of corporate commitment consistent with the conclusions drawn from the experience in other jurisdictions. The function provides a corporate resource and therefore must be located in a corporate department.

Three options were considered:

(i) creating an arms length organization;

(ii) locating the function in the Corporate Services Department; or

(iii) locating it in the Chief Administrator's Office.

An Arms Length Access and Equity Office:

This approach runs the risk of separating the function from its importance relative to the civic administration. The corporate access and equity function must be firmly entrenched in the corporation to achieve staff buy-in at all levels. A separate, arms length function flies in the face of lessons learned from best practices in other jurisdictions. The Commission for Racial Equality in Britain concluded that specialist advice and guidance must come from the very centre of the organization.

In addition, in performing its role as a civic leader, there is value in the City being directly involved in the provision of access and equity services.

Locating an Access and Equity Office in the Corporate Services Department:

The current, interim Access and Equity Unit is housed in the Human Resources Division of the Corporate Services Department. A rationale for this approach is that access and equity affects the workforce. The Human Resources Division is already providing an employment and training function. There is a link to the Chief Administrative Officer because the Executive Director of Human Resources and Amalgamation reports directly to the Chief Administrative Officer on human resource matters.

The main disadvantage of the current location is that the emphasis in the host division is on employment. Therefore, there is the risk that the purpose of the function will come to be seen primarily in terms of employment equity. Thus key responsibilities, including community outreach and liaison, civic leadership and community education and the focus on access and equity issues in general may receive less profile or attention.

In addition, the organization is undergoing a major transformation and is in the midst of staffing up departments. In such an environment, it is difficult for the Human Resources Division to afford the access and equity function the priority, profile and attention it requires.

This problem would not be overcome even if the function reported directly to the Commissioner of Corporate Services. The Commissioner, too, has a fairly broad set of responsibilities with many competing priorities and interests. These are accentuated by the amalgamation process as it relates to staffing, facilities and technology for the new City, without adding another direct reporting relationship.

Finally, maintaining the corporate access and equity function in the Corporate Services Department serves to bury the importance of the function. The profile of the function, its support of a core corporate value, its orientation both internally to the activities of the corporation and externally to the community and its embodiment of the City's motto will all be enhanced if the function is located in the Chief Administrator's Office.

Locating an Access and Equity Office in the Chief Administrator's Office:

Consideration was given to creating a stand alone Access and Equity Office that reports directly to the Chief Administrative Officer. The disadvantage of this approach is the difficulty gaining the time and attention required to direct this critical corporate function. The Chief Administrative Officer has responsibility for overseeing the work of six commissioners responsible for large departments and has little available time to manage a small organizational function like access and equity.

The preferred option is to locate the function within an existing division in the Chief Administrator's Office. The appropriate location is the Strategic and Corporate Policy Division. The advantages of placing the function in this division are:

(i) it meets the Task Force's expectation that the function should be in a high profile location;

(ii) it complements and can support other functions, skill sets and responsibilities of the division; and

(iii) it begins to make access and equity a truly corporate initiative by positioning it as a strategic resource to departments, Council and the community.

The Strategic and Corporate Policy Division currently houses the corporate policy function and the Healthy City Office. The corporate access and equity function fits well into the overall mandate of the division. The division:

(a) comprises highly skilled and conceptual thinkers in their respective areas of expertise;

(b) exists as a resource to the corporation by providing:

(i) overall policy coordination corporately; and

(ii) assisting departments in the provision of programs and services that are the best they can be;

(c) is a point of access for other governments; it is a window into and out of the corporation;

(d) deals with high profile, sensitive issues that involve diverse, sometimes conflicting interests and sets precedents by its recommendations;

(e) articulates and disseminates overall corporate strategies and core corporate values; and

(f) sets corporate directions.

The access and equity and Healthy City Office functions overlap with respect to community outreach and community capacity building activities. The access and equity and corporate policy functions overlap, too. These overlaps present opportunities within the division for capacity building, cross training, and reinforcement of corporate initiatives, corporate coordination and corporate policy development.

The result will be a Strategic and Corporate Policy Division with a strengthened corporate focus that will have an impact on how Council sets priorities and strategic directions for the corporation, and sets the framework of values and practices against which the city government wants to be viewed and judged. The placement of access and equity within this division will clearly establish these functions as part of the City's core values.

Organizing the Access and Equity Function within the Strategic and Corporate Policy Division:

Given the functional overlaps and the potential for rationalization, consideration was given to thoroughly integrating the access and equity function into the rest of the Strategic and Corporate Policy Division. Consideration was also paid to merging the Healthy City Office and current interim Access and Equity Unit to create a new unit within the division.

Rationalization of functions along one or other of those lines may be appropriate when the corporation is more stable and mature. At present it is important to retain an identifiable and focused set of access and equity functions and an identifiable set of healthy city functions and corporate policy functions. Therefore an Access and Equity Unit will be created within the Strategic and Corporate Policy Division. This unit will report to the Director of Strategic and Corporate Policy, who in turn will be accountable for its performance to the Chief Administrative Officer.

The Access and Equity Unit will replace the interim Access and Equity Unit in the Corporate Services Department. It will be responsible for:

(i) specialized advice, guidance and support to the Chief Administrative Officer, Council and departments;

(ii) specialized research and policy development;

(iii) monitoring legislative proposals that impact on human rights protected groups;

(iv) internal advocacy for access and equity objectives and policies;

(v) coordination of City-wide access and equity information;

(vi) Aboriginal affairs;

(vii) coordination of portfolios related to equity seeking groups;

(viii) community liaison, outreach and development;

(ix) implementation of awareness and public education programs on access, equity and human rights issues;

(x) coordination of support to community advisory committees on access and equity; and

(xi) administration of specialized access and equity grants.

In adopting the 1999 Operating Budget, Council approved an appropriation of $1,501,000.00 total gross expenditures ($1,471,000.00 total net expenditures) and 21.3 equivalent funded staff positions for the Access and Equity Unit. It is recommended that this appropriation and the positions be transferred from the Human Resources Division in the Corporate Services Department to the Strategic and Corporate Policy Division in the Chief Administrator's Office to facilitate the transfer of program management and administration of the corporate Access and Equity unit from the Corporate Services Department to the Chief Administrator's Office, and the 1999 Operating Budget be adjusted accordingly.

Structure for Monitoring Functions:

When they were interviewed by Task Force members in June 1998, the commissioners indicated that departments had to be held accountable for delivering their access and equity commitments. However, they did not believe that it should be the role of the corporate access and equity function to evaluate their performance. There needs to be a more level playing field where one part of the organization does not sit in judgement over the other. The corporate access and equity unit is an enabler, supporter and expert in the field. A policing function would compromise its role as a facilitator.

To ensure that departments are held accountable and to ensure that there is objective assessment of the corporation's performance in the area of access and equity, monitoring and evaluation will occur at three levels:

(a) Annual Performance Reviews:

Departments will demonstrate how they are meeting their commitments and implementing their access and equity action plans through the regular cycle of annual performance reviews.

A template has been developed for departments to use in preparing their multi-year business plans. Access and equity considerations have been incorporated into the template. Thus program areas will have to describe explicitly:

(i) how they will integrate access and equity objectives and policies into normal business activities;

(ii) what resources have been committed and action plans developed to meet access and equity objectives; and

(iii) how access and equity objectives will be reflected in staff composition, training and development.

Within the Corporate Management Framework, which Council approved in 1998(13), multi-year business plans form the basis for annual program budgets and performance reviews. The foundation for the Corporate Management Framework is the City's Strategic Plan, which is currently being developed. Access and equity goals and objectives should be incorporated into the Strategic Plan.

(b) Internal Audit:

Although it is not reflected in the Task Force's list of draft recommendations, the Task Force's draft final report proposes that, "for each term of Council (every 3 years), an external access, equity and human rights evaluation/audit will be conducted on the City's progress in achieving its goals."(14)

It is appropriate to conduct the type of focused audit proposed by the Task Force. However, such an audit falls within the mandate and competence of the City Auditor and need not be managed by an external party. The City Auditor is independent of the programs, activities and parties that would be subject to the proposed audit.

Therefore, it is recommended that, once in each term of Council, the City Auditor oversee an internal audit of the performance by the corporation as a whole. The purpose the audit will be to monitor the City's overall achievement in meeting its access and equity goals.

(c) Annual Community Consultation:

Part of the intent of the Task Force's proposal that there be an externally conducted audit is to ensure that there is a community perspective in the evaluation of the City's access and equity efforts. In order to receive an external community perspective on the progress being made by the City and its relevance to issues in the community, it would be appropriate to convene an annual consultation with a report card that would provide input to planning, policy and program development in subsequent years. It is recommended that the City convene such an annual community consultation on access, equity and human rights issues. This process could form part of a more general initiative to report on the State of the City. It could also contribute to the purpose of the biannual joint meetings of community advisory committees contemplated in recommendation 76 in the Task Force's draft final report.(15)

Conclusions:

The organizational approach described in this report is based on the premise that the City wants to embrace access and equity as cornerstones of its activities and relationship with the community. The administrative structures and accountability processes have been designed to accommodate the aspirations of the Task Force on Community Access and Equity. The Task Force's draft report sets out a direction for Council to follow. Movement in that direction will be quicker in some years, slower in others, depending on Council's relative priorities and the resource constraints of the day.

It is recommended that the Task Force on Community Access and Equity be requested to take this report into consideration during the preparation of its final report to Council.

The Strategic Policies and Priorities Committee also submits the following report (May 27, 1999) from Councillor Joe Mihevc, Chair, Task Force on Community Access and Equity entitled "Final Recommendations of the Task Force on Community Access and Equity":

On January 29, 1999, the Task Force on Community Access and Equity tabled its Draft Report at the Strategic Policies and Priorities Committee with a request for the Chief Administrative Officer to bring forward a report regarding administrative options for implementing the proposed Action Plan. The Draft Report was widely circulated for comment and input and the Action Plan and Recommendations have been finalized and are attached.

Members of the Task Force have reviewed the Chief Administrative Officer's report (May 19,1999) regarding the resources and organizational placement of access and equity functions. Task Force members offer the following recommendations:

(1) that Recommendation No. (4) in the Report (May 19, 1999) from the Chief Administrative Officer be amended by deleting the word "internal"; and

that the Report of the Chief Administrative Officer be adopted as amended.

(2) that the Action Plan and Final Recommendations of the Task Force on Community Access and Equity be approved as the policy and program framework for implementing access and equity.

The Task Force also wishes to advise that it has established an implementation sub-committee which will continue its work until December 31, 1999, by which time the new advisory committees and working groups will be in place.

City of Toronto

Task Force on Community Access and Equity

Action Plan and Final Recommendations

May, 1999.

Community Advisory Committees:

(1) that City Council establish seven City-wide access, equity and human rights community advisory committees to address the priorities faced by the human rights protected groups:

(a) Aboriginal Affairs Committee;

(b) Disability Issues Committee;

(c) Status of Women Committee;

(d) Racial Minorities Committee;

(e) Ethnocultural and Faith Issues Committee;

(f) Immigrant and Refugee Issues Committee; and

(g) Committee on Lesbian, Gay, Bisexual and Transgendered Issues.

(2) that Community Councils establish working groups on access, equity and human rights issues as needs currently exist or arise and permit membership on these working groups to include individuals who work or reside in the City;

(3) that the community advisory committees advise City Council, its agencies, boards and commissions, and advocate to external bodies on removing barriers that restrict human rights protected groups from participating in public life and achieving social, cultural, economic and political well-being;

(4) that the community advisory committees include: individuals; individuals who work in community agencies serving the human rights protected groups; individuals with technical expertise; and, that the membership represent all regions of the City, and reflect the diversity of the City's population;

(5) that the community advisory committees on access, equity and human rights report to Council through the appropriate Standing Committees on issues within the mandate of the Standing Committees and to the Policy and Finance Committee for issues which are strategic in nature;

(6) that a publicly advertised process with a nominating committee be used to select the members of the community advisory committees and working groups on access, equity and human rights outlined in Appendix A;

(7) that City Council appoint at least 2 Members of Council to serve on each of the above named community advisory committees on access, equity and human-rights;

(8) that City Council appoint a Member of Council as a special advocate on disability issues; and

(9) that the City provide sensitivity and awareness training and materials on access, equity and human rights issues to all persons involved with the municipal structure, including elected officials, emergency services personnel, staff, contractors and persons appointed to city committees.

Aboriginal Self-Determination:

(10) that City Council endorse the principle of Aboriginal self-determination and work with Aboriginal people to achieve this goal;

(11) that City Council establish an Office of Aboriginal Affairs; and

(12) that City Council establish initiatives to support the cultural, social, economic and political participation of Aboriginal communities in Toronto's civic life.

Disability Access:

(13) That City Council establish an Office of Disability Issues;

(14) that City Council and City staff review all disability-related policies of former municipalities, and compile best practices to remove systemic barriers in employment, goods, services and facilities, and that City Council endorse these best practices;

(15) that City Council authorize an external review of the policies and services and establish time lines for changing or improving the mobility and access of people with disabilities including all forms of transportation services in the city, including:

(i) adding streetscaping amenities (e.g. ramped corners with tactile warning strips, practical street door accesses, and enforcing clear paths on all pedestrian walkways);

(ii) installing specialized traffic signals (e.g. audio signals at which those users who cannot cross safely during the standard cycle timing can prolong the pedestrian walk cycle); and

(iii) improving the services provided by the TTC, Wheeltrans and increasing the number of accessible taxicabs.

(16) that City Council establish TTY's in all departments, in public areas of City facilities and in the community.

Advocacy and Partnership:

(17) that City Council continue to act as an advocate for the equal treatment of same-sex spouses;

(18) that City Council take steps to establish parallel pension benefits programs for same-sex spousal families and that these remain in place until other governments remove legislative prohibitions, and that no limits be set on retroactivity for these benefits;

(19) that work against hate activity include hate crimes and incidents motivated by racism, sexism, antisemitism, bigotry, or homophobia;

(20) that the City request the inter-agency working group on hate activity to continue its work;

(21) that, where required, City Council and City staff should work to establish inter-agency staff working groups to address specific problems; and

(a) that a working group be established on Language Equity and Literacy; and

(b) that the working group on Employment Equity include the City's bargaining agents as well as community organizations.

(22) that the City vigorously implement the already approved implementation strategy arising from the Urban Forum on Immigration and Refugee Issues;

Civic Appointments:

(23) that for the purpose of implementing Council's policy on appointments to agencies, boards, commissions and special purpose bodies, the City will define 'citizen' to include all persons who pay property taxes or business taxes or who live within the boundaries of the City of Toronto including permanent residents, refugees, refugee claimants, residents without homes;

(24) that the City use the foregoing definition of 'citizen' in making appointments to agencies, boards, commissions and special purpose bodies, except where law requires Canadian Citizenship for an individual to serve as a member of these bodies;

(25) that the City remove the age restriction in making appointments to agencies, boards, commissions and special purpose bodies except where law requires an individual to attain a particular age to serve as a member of these bodies;

(26) that City Council advocate for changes to any law which creates barriers to civic appointments for persons who are residents or who pay property taxes or business taxes;

(27) that the Nominating Committee establish goals and timetables for increasing the diversity among persons it recommends for civic appointments; and

(28) that City staff provide an annual report to City Council on the participation rates of the human rights protected groups in appointments made to agencies, boards, commissions and special purpose bodies.

Participation and Communications:

(29) that the City make resources available to facilitate members of the public in participating on advisory committees which Council establishes and the advisory or management committees/boards of agencies, boards, commissions and special purpose bodies, including providing information in alternate formats, languages, attendant care, child care, and using accessible locations;

(30) that the communications strategies for municipal elections take account of the City's linguistic diversity and levels of literacy;

(31) that all graphic design, cultural programs and special events of the City reflect the diversity of the City's population;

(32) that the City continue to provide awareness and public education programs which support the principles of including all groups, respecting differences, achieving human rights, and eliminating harassment and hate activities;

(33) that the City continue its awards and scholarship programs which recognize and contribute to the City's objectives regarding access, equity and human rights;

(34) that the City provide space in its press gallery for the "ethnic and community" media to help expand coverage of municipal issues;

(35) that the City maintain and enhance its multi-lingual capacity by encouraging staff to use the multi-lingual AT&T telephone service, providing printed materials in various languages, purchasing service agreements with community agencies, identifying and remunerating staff with language skills, and continuing to use in-house interpreters and community liaison staff; and

(36) that City extend guidelines regarding anti-discrimination which govern the use of Nathan Phillips Square to all "civic squares" and that the City amend the Municipal Code accordingly.

Services and Planning:

(37) that the City set annual targets for increasing the number of child care spaces and their hours of operation;

(38) that the City make housing services for refugees a priority;

(39) that the Official Plan and the Social Development Strategy respond to the barriers and specific needs identified during the consultations held by the Task Force;

(40) that the Official Plan provide for recognizing the ethno-racial and cultural heritage and needs of the diverse communities in the City;

(41) that City Departments involve residents in program advisory committees to evaluate services and make sure that these processes include persons who are from the City's diverse communities;

(42) that the City continue recreation programs which are targeted to specific communities, including lifeguard training for black youth, special hours for Muslim women, and leadership training for youth from high-risk populations;

(43) (a) that the City review its zoning, building and fire regulations to address the barriers faced by Aboriginal people and other communities practicing cultural and spiritual traditions, and identify those regulations which fall under the mandate of other levels of government, and advocate for changes as required; and

(b) that appropriate civic officials be requested to report further on these matters including the provision of residential uses at places of worship and various burial traditions.

(44) that City Council adopt a set of accessibility guidelines for all City-owned buildings and other properties and that it determine accessibility gaps and implement an action plan to address these gaps;

(45) that the City work to proactively respond to accessibility issues with architects and developers by seeking to enhance the legislated requirements under the Ontario Building Code and more stringently enforcing them;

(46) that the City investigate means of augmenting the city's stock of affordable accessible housing for people with disabilities, both privately and publicly owned; and

(47) that the City modify its subsidies program to create portability which matches the need of the tenant with the disability, rather than the unit;

Employment and Leadership:

(48) that the City adopt an employment equity policy to achieve a workforce which reflects the population at all occupational levels of the City;

(49) that the City conduct additional workforce surveys as needed to assemble a complete data base from which to monitor the ongoing participation of designated groups in the City's workforce;

(50) that when the City establishes any new compensation and benefit programs for employees it arrange for an independent "gender equity"/ "wage gap" analysis to determine the impact of new systems on the "wage gap";

(51) that the City establish "mentoring" and "job demonstration" programs to help individuals from groups who face barriers gain work experience, and that the City encourage and recognize employees who act as volunteers for these programs;

(52) that the City offer specialized training programs to employees to enhance their language and literacy skills or to facilitate entry into "non-traditional" work, paying particular attention to employees whose first language is not English, or for whom technology and high literacy levels have not been occupational requirements;

(53) that Council allocate sufficient resources to accommodate employees with disabilities in the workplace so that their productivity and work experience parallels as nearly as possible that of their peers; and

(54) that the City's Fair Wage and Labour Trades Office continue to oversee the anti-discrimination requirement of the Workers Rights Policy and that it update the grounds of anti-discrimination to include those covered by the Human Rights Policy.

Employee Consultation:

(55) that the City continue its employee working groups, as needed, on issues related to the designated groups to address emerging issues, and that they liaise with the relevant community advisory committees on an ongoing basis; and

(56) that the City encourage employees to participate in corporate and community programs to help staff better understand the City's diverse communities;

Complaints:

(57) that the City establish a Human Rights Office to receive inquiries and investigate complaints of discrimination regarding employment, access to services, and hate-related activities;

(58) that the organizational placement of the City's Human Rights Office facilitate arm's-length investigations, including those relating to complaints of discrimination in employment, service delivery and hate activity; and

(59) (a) that the Human Rights Office submit an annual report to Council on its activities; and

(b) that this Annual Report include the success rates of resolving complaints, including those which have been filed with the Ontario Human Rights Commission.

Building Economic Capacity:

(60) that the City's Economic Development Strategy specifically outline proactive strategies that include the City's diverse communities;

(61) that the City implement the implementation strategy arising from recommendations of the Urban Aboriginal Economic Development Seminar and that it provide progress reports;

(62) that to promote the image of Toronto as a "global city", city-endorsed programs, such as the Olympic Bid, The Gay Games, small business outreach, strategies be implemented to use these as opportunities for businesses owned and operated by members of the human rights protected groups;

(63) that the City use its purchasing process for communicating the City's leadership role on employment equity, anti-discrimination and against harassment in the workplaces of Toronto;

(64) that the City continue information and outreach activities, which make sure that businesses from various communities have access to the procurement process of the City and its agencies;

(65) that the City's purchasing process utilize strategies such as reducing the size of contracts and sub-contracts to increase the number of businesses owned by designated groups participating in the process and for achieving employment equity among firms seeking to do business with the City; and

(66) (a) that City staff submit an annual report to Council on the proportion of expenditure the City spent with businesses owned by the designated groups and that this report include information on the employment equity policies of firms who are suppliers to the City; and

(b) that a report be submitted to Council every 5 years, coinciding with the Census, on the status of designated groups in supplier workforces.

Building and Supporting Community Capacity:

(67) that City Council continue to support community organizations through its various grants programs and that it develop a strategy to facilitate the equitable distribution of grants funding.

(68) that the City continue to provide resource support, such as meeting space, information sessions and research information to community organizations to assist them in providing services to their communities and to facilitate their participation in civic society;

(69) that the City require all organizations receiving City grants to demonstrate their commitment to access and equity;

(70) that the City expand its Day Care grants program across the City;

(71) that the City expand its Breaking the Cycle of Violence (BTCV) grants program across the City;

(72) that the Multicultural grants program maintain anti-racism and anti-hate as program criteria, if no new funds are available in 1999; and

(73) that City Council work to establish a comprehensive access and equity grants program to support the advocacy efforts of human rights protected groups.

Monitoring and Evaluation:

(74) that City staff modify the report template for all reports to Council to include an impact statement on access, equity and human rights;

(75) that City staff prepare comprehensive demographic profiles of all City wards to guide policy development, program planning and service delivery;

(76) (a) that the community advisory committees on access, equity and human rights issues meet jointly at least twice per year to review the ongoing implementation of the corporate action plan for access, equity and human rights and to review the annual reports;

(b) that these joint meetings include any access, equity and human rights working groups established by Community Councils; and

(c) that during this annual meeting, the schedule be arranged to provide for participants to come together on a geographical as well as on an issue basis;

(77) that each Department, Agency, Board, Commission or special purpose body submit an Access, Equity and Human Rights Action Plan to City Council;

(78) that each Department evaluate its policies, programs and services to identify barriers experienced by the human rights protected groups and that measurement tools be prepared for this purpose;

(79) that City Council request its Agencies, Boards, Commissions and special purpose bodies to provide an annual report on how they implemented employment equity, community access, service equity and human rights;

(80) that the annual employment equity report to Council on the status of the human rights protected groups include data on its workforce as a whole and by Departments regarding representation, occupations, promotions, compensation, training, benefits, exits, and developmental opportunities; and

(81) that the City produce an annual consolidation of access and equity measures in a report card format.

Organization and Resources:

(82) that the City establish organizational structures and resources for access, equity and human rights:

(i) to provide policy development;

(ii) to facilitate community advisory processes including committees relating to the human rights protected groups and other Committees of Council as required;

(iii) to administer anti-racism, access and equity grants;

(iv) to investigate human rights issues at arm's length;

(v) to implement awareness and public education programs on access, equity and human rights issues;

(vi) to act as a resource for departments and agencies in developing and implementing action plans;

(vii) to liaise with community organizations regarding emerging issues and to assist them with civic involvement;

(viii) to conduct research on the needs of the human rights protected groups and to provide results to departments to use in delivering services;

(ix) to monitor legislative proposals that impact on the human rights protected groups;

(x) to implement communication strategies to increase involvement and access to services;

(xi) to promote the City's position to other levels of government and external bodies; and,

(xii) to provide advice and research to Council Committees.

(83) that Agencies, Boards and Commissions be requested to implement access, equity and human rights policies and programs consistent with those of City Council; and

(84) that the Workers Information and Action Centre be continued as a resource for addressing employment discrimination in the Toronto labour market and that the Small Business Centres operated by the City ensure that information regarding employment equity and human rights are provided to business owners.

Implementation and Follow-up:

(85) (a) that an external evaluation or Access, Equity and Human Rights Audit be conducted by City Council every three years for each term of Council on the implementation of Council's access, equity and human rights policies and programs";

(b) that a reference group be established to oversee the evaluation process and that this include representatives of the community advisory committees and community organizations, and be chaired by a Member of Council serving on one of the community advisory committees; and

(c) that the external evaluation be conducted by individuals/firms who are recognized as professionals with experience and expertise in the access, equity and human rights field; and

(86) that the Chief Administrative Officer provide a status report 12 months after approval by Council on the implementation of recommendations;

External Agencies:

(87) that the Toronto District School Board and all Boards of Education be requested to implement comprehensive access, equity and human rights policies;

(88) that the Government of Ontario be requested to provide resources for education, transportation, housing, etc., to improve the status of the human rights protected groups; and

(89) that the Government of Canada be encouraged to provide resources to the City, and other agencies for settlement, education and employment certification for immigrants and refugees.

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Appendix A

Terms of Reference for Community Advisory Committees

Names of recommended committees:

(i) Aboriginal Affairs Committee;

(ii) Disability Issues Committee;

(iii) Status of Women Committee;

(iv) Racial Minorities Committee;

(v) Ethno-cultural and Multi-faith Issues Committee;

(vi) Immigrant and Refugee Issues Committee; and

(vii) Committee on Lesbian, Gay, Bisexual and Transgendered Issues.

Role and responsibilities:

The Community Advisory Committees shall use their knowledge and expertise to provide advice to City Council, through the standing committees of Council, and act as a liaison with external bodies on barriers to participation in public life and to the achievement of social, cultural and economic well-being of the City's residents.

Each Community Advisory Committee shall also address the specific issues facing particular communities, develop options for Council's consideration and make recommendations for positive changes that shall improve the quality of the lives of the members of the City's diverse communities.

Process:

In providing advice to Council, the Community Advisory Committees shall consult and hold public meetings with communities around specific issues. Meeting schedules/locations shall take into consideration regional/geographic concerns.

Membership and Eligibility:

Each Community Advisory Committee will be composed of 18 community members and 2 Members of Council. Members are appointed as individuals and not as representatives of organizations. Members shall include individuals, individuals who work in community agencies serving human rights protected groups, and individuals with technical expertise. The overall membership shall represent all regions of the City, reflect the diversity of the given community, and at least two thirds of the membership shall be reflective of the issues being addressed by the respective committees. All committees shall have equal numbers of men and women, except for the status of women committee, of which at least two thirds of its membership shall be women.

To be eligible, a member must reside or pay business or property taxes in the City of Toronto. A position is vacated automatically if eligibility criteria are no longer met by the incumbent.

Membership selection:

City Council shall appoint members. An initial selection committee will recommend to City Council the membership for each community advisory committee. After the first appointments, the selection process will be turned over to each committee and shall follow the procedures outlined in this report, unless amended by City Council.

The initial selection committee will consist of men and women representing each of the proposed committees. Membership shall be drawn from existing municipal advisory committees, community members of the Task Force on Community Access and Equity and individuals from community groups who are not seeking appointment to any of the proposed advisory committees or working groups. The selection committee will be facilitated by the Task Force Chair and supported by a staff team from the Access and Equity Unit.

The selection of co-chairs of the community advisory committees will be made by the members of the advisory committees.

Guidelines for Administering Selection:

An information seminar will be held for each Committee, at which attendance is mandatory for all applicants.

A Standard application form will be used by all applicants and application forms will be distributed at the information seminars.

Interviews will be conducted by interview teams which will include at least one member of Council who is appointed to the Committee.

A standard list of interview questions will be used during the interview process.

The recommendations of the Interview Teams will be forwarded to the appropriate Committee and to Council.

Each Committee will undertake an orientation session for its citizen members.

How to Find Interested Members:

A widely advertised public process shall be used, including local community-based media, groups and organizations and information sessions, etc. to call for applications to the community advisory committees. The following criteria used for the selection of the members of the Task Force shall continue to be used:

(i) experience working in an advisory committee or similar setting;

(ii) leadership in the community on access, equity issues ;

(iii) history of public service such as volunteer work;

(iv) proven ability to consult within and across their sector;

(v) demonstrated commitment, knowledge and understanding of access and equity issues;

(vi) availability and willingness to attend meetings;

(vii) skills in listening, analysis and learning; and

(viii) ability to work in a team setting, including an interest and capacity to work through consensus.

A shortlist of qualified candidates who are available for future appointment shall be maintained for six months and contacted as vacancies arise.

Term of office:

Members shall be appointed for a three-year term and/or until a successor is appointed. The terms of office of members will overlap to maintain continuity. In the first term, half of the members shall be appointed for a two-year term and half shall be appointed for a three-year term.

A person appointed when a member resigns only serves the remainder of that term and is eligible to reapply.

Individuals are eligible for membership for a maximum of two consecutive terms, i.e., six years.

Quorum:

A quorum shall be fifty percent of community members on the Advisory Committee.

Reporting relationship:

The Community Advisory Committees shall report to Council through the appropriate standing committees on issues within the mandates of the standing committee, and to the Strategic Policies and Priorities Committee for issues which are strategic in nature.

Operating procedures:

The Advisory Committee shall follow the rules and procedures of Council committees.

Selection process for Access, Equity and Human Rights Working Groups established by Community Councils:

A selection process similar to that for the community advisory committees shall be followed.

The initial selection committee will be drawn from the existing municipal advisory committees operating at the local communities who are not seeking reappointment, another local community group and from the Task Force on Community Access and Equity.

The size of the working groups shall be established by the Community Council.

The selection process shall be facilitated by a Member of Community Council who has served on a municipal advisory committee regarding access and equity. The process will be supported by the Access and Equity Unit.

Selection process for Issue-Based Working Groups:

The Issue-Based Working Groups shall be chaired by a Member of Council. Membership shall include organizational representatives from agencies and other institutions whose mandate includes the issues addressed by the Working Group. Expressions of interest should be sought from interested organizations and a membership list established and reported to City Council along with the terms of reference for the working group. The membership shall have representation from all regions of the City and shall reflect the diversity of the City's population.

The Strategic Policies and Priorities Committee also submits the following communication (February 23, 1999) from the City Clerk:

Recommendation:

The York Community Council recommended that the Strategic Policies and Priorities Committee be advised that it endorses in principle, the Draft Report of the Task Force on Community Access and Equity.

Background:

The Community Council on February 17, 1999, had before it the communication (January 22, 1999) from Councillor Joe Mihevc, Chair, Task Force on Community Access and Equity, to the Strategic Policies and Priorities Committee, forwarding the Draft Report of the Task Force.

The following persons appeared before the Community Council in connection with the foregoing matter:

- Mr. Charles Ng, member of the Task Force;

- Ms. Sonja Greckol, member of the Task Force;

- Mr. Al Reeves, member of the Task Force; and

- Ms. Rose Lee, Access and Equity Centre.

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(Report dated January 22, 1999, addressed to the

Strategic Policies and Priorities Committee

from Councillor Joe Mihevc, Chair,

Task Force on Community Access and Equity)

Purpose:

To extend the mandate of the Task Force on Community Access and Equity by three months to allow the Chief Administrative Officer to prepare an options report on administrative structures to be considered in the finalization of the Report.

Financial Implications:

None. Each of the former municipalities allocated resources for the implementation of programs and services to support achieving access and equity for all human rights designated groups facing barriers and for the participation of representatives of these groups on municipal advisory committees on equity issues. The Chief Administrative Officer's report regarding the implementation plan for the Final Report of the Task Force will address resource requirements.

Recommendations:

It is recommended that:

(1) the Chief Administrative Officer be requested to prepare a report for the end of March, if possible, for consideration by the Task Force on Community Access and Equity and that the report address the following:

(a) administrative options to support this Action Plan which includes community advisory committees; an Aboriginal Affairs Office, a Disability Issues Office, a Human Rights Office; and an Access and Equity Centre with geographic sites;

(b) an external evaluation mechanism for conducting an Access, Equity and Human Rights Audit every 3 years for each term of Council on the implementation of Council's policies on access, equity and human rights; and

(c) the level of resources required for the harmonization and leveling up of the access, equity and human rights programs and policies of the former municipalities.

(2) the mandate for the Task Force on Community Access and Equity be extended by 3 months to provide the time required by the Chief Administrative Officer to prepare the options report outlined in Recommendation No. 1; and

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

Council Reference:

At its meeting of March 4, 5 and 6, 1998, Toronto City Council established the Task Force on Community Access and Equity to address the ways in which the City can:

"(i) strengthen civic society and in particular empower those members of the community who face barriers to full participation in the life of the community;

(ii) take a more effective role in addressing the barriers faced by women, people of colour, Aboriginal people, people with disabilities, lesbians, gays, bi-sexual and transgendered, immigrants/refugees, different religious/faith communities;

(iii) strengthen community involvement and public participation in the decision-making processes of the municipality, particularly for equity seeking communities;

(iv) continue the City's pro-active role in linking and partnering with other institutions and agencies, as well as with the community, in engaging in initiatives in support of access and equity;

(v) ensure that the contributions, interests and needs of all sectors of Toronto's diverse population are reflected in the City's mission, operation and service delivery; and

(vi) continue the City's leadership in the community as a model employer with a workforce that reflects the diversity of its residents and which follows fair and equitable employment practices".

Council also authorized the continuation of the existing advisory committees of the former municipalities; the filling of vacancies using Task Force selection criteria; and the continuation of all the access and equity policies and programs of these municipalities. Council requested the Task Force to submit its final report in January, 1999 and to remain in place until the end of March to advise on implementation.

Comments:

The Task Force Members were appointed in April, 1998. The Task Force has met monthly and held a number of consultations with a wide range of community organizations at many different locations across the City.

Many people who participated in the consultations were pleased that the Task Force consulted them about access, equity and human rights issues, but were anxious about whether the consultations meant that the City of Toronto was no longer committed to the previous policies and programs of the former municipalities.

Community members stated over and over again, that despite their personal and group situations, the strong voice with which the City has spoken on many issues has made the City a better place to live. However, members of the community are mindful of the increase in hate motivated activities against many of the human rights protected groups. Many members of these groups have found that lack of recognition of non-Canadian work experience, difficulties with gaining Canadian work experience, lack of accommodation, inadequate child care and transportation barriers continue to be problems. During consultations, they reported that downloading is negatively affecting members of their communities and that their organizations, faced with budgetary cuts, are unable to respond to need.

Members of the groups have very positive feelings about the past and ongoing efforts of the City to be an advocate to other levels of government and to respond to the diverse service needs of its population. Community members also stressed that the assembly of people from all corners of the world living and working in the City has created a social fabric that is the envy of many.

The Task Force also found that the feelings of "ownership" and "belonging", were fostered by the presence of the community advisory committees established by the former municipalities, both at the City wide and departmental levels. Through these committees, groups who face barriers were able to give advice on policy issues to their Councils and to provide input to Departments about specific service needs.

However, the Task Force also heard very clearly from the Aboriginal community that there is a failure to recognize, respect or value their distinct status within society.

The Task Force also noted that there was a wide variation among the former municipalities regarding the policies, programs, resource allocation and administrative structures with respect to access, employment equity, service equity and human rights. In particular, the Task Force noted in its review of reports prepared for the Toronto Transition Team that 38 of the 44 staff positions specifically dedicated to the delivery of access, service equity, human rights and employment equity programs were staff of either the former Metro Toronto or the former City of Toronto.

Task Force Preliminary Conclusions:

The Task Force members are beginning to conclude that:

(1) there is a continuing need for community advisory committees regarding access and equity resulting from the barriers faced by human rights protected groups and lack of access to full participation in all aspects of social, cultural, economic and political life;

(2) there is a continued advocacy role which City Council must play with other levels of government, institutions and the community at large;

(3) the City can assist the Aboriginal people of Toronto who are working towards "self determination";

(4) the City must maintain its corporate leadership role in implementing employment equity and human rights programs, and in providing services which respect the unique needs of human rights protected groups;

(5) the City must continue to build community capacity through grants and other resource supports; and

(6) the pro-active stance taken by the former municipalities and the new city on these issues have helped to foster a spirit of mutuality and trust among the people of Toronto and has contributed to the City's reputation for its ability to embrace and nurture its diverse communities.

Councillor Joe Mihevc, Chair, Task Force on Community Access and Equity appeared before the Strategic Policies and Priorities Committee in connection with the foregoing matter.

(A copy of the draft report dated January, 1999, from the Task Force on Community Access and Equity entitled "Diversity Our Strength - Access and Equity Our Goal", was forwarded to all Members of Council with the June 1, 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 June 9, 10 and 11, 1999, had before it, during consideration of the foregoing Clause, the following report (June 7, 1999) from the Chief Administrative Officer:

Purpose:

This report clarifies how recommendations by the Task Force on Community Access and Equity for the establishment of specific Offices for Aboriginal Affairs and Disability Issues will be implemented within the administrative organization for access and equity services in the City.

Financial Implications:

The recommendations in this report can be accommodated within existing approved financial and staff resources.

Recommendations:

It is recommended that:

(1) Council endorse the Task Force on Community Access and Equity's recommendations nos. 11 and 13; in order to implement recommendations 11 and 13 of the Task Force on Community Access and Equity, the City establish an Office of Aboriginal Affairs and an Office of Disability Issues within the corporate Access and Equity Unit in the Chief Administrator's Office; and the establishment of these two offices be accomplished within the approved budget and staffing levels of the corporate Access and Equity Unit; and

(2) in preparing the status report requested in the Task Force's recommendation no. 86, the CAO comment specifically on progress regarding the implementation of Offices for Aboriginal Affairs and Disability Issues and the development of their mandates and City and community relationships; and the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.

Council Reference:

On June 1, 1999 the Strategic Policies and Priorities Committee considered a report from the CAO entitled "Resources for Access and Equity Functions". The committee also considered the final recommendations of the Task Force on Community Access and Equity.

The CAO's report provided an approach to the organization of administrative structures for access and equity functions in the City that can accommodate the aspirations of the Task Force within the financial constraints of the corporation. The Task Force's recommendations nos. 11 and 13 proposed respectively that Council establish an Office of Aboriginal Affairs and an Office of Disability Issues. The CAO's report did not explicitly endorse the creation of these special offices, but noted in its description of current resources for access and equity that:

"Two of the staff in the [corporate Access and Equity] unit are dedicated to Aboriginal affairs and effectively perform the functions of an Aboriginal Affairs Office as contemplated in recommendation no. 11 in the Task Force's draft final report. Another staff person carries a disabilities issues portfolio, which includes the responsibilities envisaged in recommendation no. 13 in the draft final report."

The Strategic Policies and Priorities Committee referred the Task Force's recommendations nos. 11 and 13 to the CAO for a report thereon directly to City Council. The present report responds to that request. The Chair of the Task Force on Community Access and Equity was consulted during the preparation of this report and concurs with its recommendations.

Comments:

Following the above-noted referral of recommendations 11 and 13, staff consulted further with Councillor Mihevc, the Chair of the Task Force. Councillor Mihevc advised staff that, from the perspective of the Task Force, the creation of Offices of Aboriginal Affairs and Disability Issues is essential. During the Task Force's consultations with the Aboriginal Community and people with disabilities, the theme of establishing offices was constant and resounding. Both communities argued that an "office" would allow a focus and energy that might not otherwise emerge.

Councillor Mihevc also advised staff that the creation of offices for Aboriginal Affairs and disability issues would not be precedent setting by opening the door for other groups wanting to establish an office. The Task Force heard from a variety of equity seeking communities, many of whom recognized the unique needs of people with disabilities and the Aboriginal community. The Task Force concluded that urban Aboriginal issues and issues related to disabilities are uniquely marginalized and that designated "offices" will raise both the profile and priority of these issues within the City.

The CAO's report outlining resources for access and equity functions in the City assumes that the current expertise, coordination and support functions regarding both Aboriginal affairs and disability issues will continue to be provided within the corporate Access and Equity Unit. In view of the Task Force's conclusions about the importance of designated offices for Aboriginal Affairs and Disability Issues, it is recommended that Council endorse the Task Force on Community Access and Equity's recommendations nos. 11 and 13.

In order to implement these recommendations, it is recommended that the City establish an Office of Aboriginal Affairs and an Office of Disability Issues within the corporate Access and Equity Unit in the Chief Administrator's Office. It is further recommended that the establishment of these two offices be accomplished within the approved budget and staffing levels of the corporate Access and Equity Unit.

Conclusions:

The recommendations in this report clarify how the Task Force's recommendations nos. 11 and 13 will be implemented within existing resources and the organizational structure outlined in the report entitled "Resources for Access and Equity Functions". The Task Force's recommendation 86 requests the CAO to provide a status report after 12 months on the implementation of the Task Force's recommendations. It is recommended that, in preparing the status report requested in the Task Force's recommendation no. 86, the CAO comment specifically on progress regarding the implementation of Offices for Aboriginal Affairs and Disability Issues and the development of their mandates and City and community relationships.)

(City Council also had before it, during consideration of the foregoing Clause, a communication (June 8, 1999) from Ms. Anne Dubas, President, CUPE, Local 79, requesting that the City work towards employment equity in the workplace by a joint decision-making process between the employer and its unions.)

1. 1 Task Force on Community Access and Equity, Diversity Our Strength, Access and Equity Our Goal, Draft Report, January 1999

2. 2 ibid.

3. 3 ibid.

4. 4 ibid.

5. 5 ibid.

6. 6 Ibid.

7. 7 ibid.

8. 8 Toronto Transition Team, New City, New Opportunities, December 1997

9. 9 City of Toronto Chief Administrative Officer & Executive Director of Human Resources, Preliminary Review of International Municipal Access and Equity Practices, July 1998

10. 10 minutes from meeting between Task Force members and commissioner & staff of Community & Neighbourhood Services department on June 15, 1998, included in Departmental Responses to the Role of Access and Equity, June 1998

11. 11 minutes from meeting between Task Force members and commissioner & staff of Corporate Services department on June 12, 1998

12. 12 minutes from meeting between Task Force members and commissioner & staff of Works and Emergency Services department on June 8, 1998

13. 13 Strategic Policies and Priorities Committee Report 8 (6), adopted as amended by Council May 13, 1998

14. 14 Task Force on Community Access and Equity (January 1999)

15. 15 ibid.

3

Smog Prevention and Reduction: Status Report

and Work Plan

(City Council on June 9, 10 and 11, 1999, amended this Clause by adding thereto the following:

"It is further recommended that:

(1) Chapter 212 (with set fines) be enforced within the limits of the former City of Toronto in combination with enforcement of By-law No. 673-1998 by way of certificate of offence and summons under Part 1 of the Provincial Offences Act in the areas of the new City, other than in the geographical region of the former City of Toronto, until such time as the set fines for By-law No. 673-1998 have been established;

(2) enforcement be conducted by staff from Municipal Licensing and Standards and Parking Enforcement Officers;

(3) the Chief of Police be requested to allocate police officers and cadets to enforce the by-laws, especially during smog days;

(4) enforcement be on a complaint basis and be pro-active on smog days; and

(5) the following motions be referred to the Chief Administrative Officer:

Moved by Councillor Adams:

'That the Clause be amended by:

(1) inserting in Recommendation No (8) embodied in the report dated May 18, 1999, from the Chief Administrative Officer, the words "and Nanticoke Generating Station" after the words "Lakeview Generating Station", so that such recommendation shall now read as follows:

"(8) City Council request Ontario Hydro to adopt emergency measures which would provide for the reduction of power generation at the Lakeview Generating Station and Nanticoke Generating Station during smog alert days;"; and

(2) adding thereto the following:

"It is further recommended that the Chief Administrative Officer be requested to submit a report to Council in July or September, through the Policy and Finance Committee, on the feasibility of providing free Toronto Transit Commission tokens or tickets to City staff for use on public transit on Smog Alert days." '

Moved by Councillor Fotinos:

'It is further recommended that the Environmental Task Force be requested to begin looking at options pursued in other countries, such as the feasibility of a plan that would exclude vehicles from the downtown core on alternate days of the week, based on an even and odd licence plate system.'

Moved by Councillor King:

'It is further recommended that the Medical Officer of Health be requested to prepare a one-page Notice advising the public on how best to respond to Smog Alerts, and that such Notice be sent out with the next water bill.'

Moved by Councillor Layton:

'B. That Councillor Layton's Recommendation No. (4), embodied in his report dated June 1, 1999, be adopted, subject to striking out the phrase "That staff be directed to" and substituting the phrase "That a report be brought to the July Council meeting about how staff can"; and adding the phrase "the vehicle is required for the employee's work", so that such recommendation shall now reads as follows:

"(4) That a report be brought forward to the July Council meeting on how staff can immediately implement an employee parking policy for City Hall and all other work locations so that free commuting spaces become pay for parking, unless free parking is required because of a disability, contractual obligations, an occupational health and safety concern or the vehicle is required for the employee's work; and that the Parking Authority of Toronto be responsible for the administration of the City Hall commuter spaces and a system be developed for other sites;";

C. That the Medical Officer of Health and the Chief Administrative Officer secure from the Budget Committee resources to create a smog response team to speed up the implementation of the Smog Plan adopted by Council in May 1998, and instigate any other initiatives that will reduce smog; and

D. That the report dated June 7, 1999, from the Chief Administrative Officer be adopted.'

Moved by Councillor Mihevc:

'That the motion by Councillor Shiner be amended by adding thereto the words "and further, that the Chief Administrative Officer be requested to submit a report to the Administration Committee on the use of the Council drivers if this directive is implemented." '

Moved by Councillor Shiner:

'It is further recommended that City Councillors' cars not be made available or used on smog alert days.'

Moved by Councillor Moeser:

'That:

(1) Recommendation No. (4) embodied in the report dated June 1, 1999, from Councillor Jack Layton, be referred to the Office Consolidation Sub-Committee for further consideration and report thereon to the Administration Committee; and

(2) Part B of Councillor Layton's motion be referred to the Office Consolidation Sub-Committee.'

Moved by Councillor Pantalone:

'That Part B of Councillor Layton's motion be referred to the Chief Administrative Officer for report thereon to the Administration Committee.' ")

The Strategic Policies and Priorities Committee recommends:

(1) the adoption of the report (May 18, 1999) from the Chief Administrative Officer; and

(2) that Council reiterate its support for the Toronto District Heating Corporation's Deep Lake Water Cooling Project, and that staff be instructed to finalize the Energy Sharing Agreement with the Toronto District Heating Corporation by the end of June, 1999.

The Strategic Policies and Priorities Committee reports, for the information of Council, having taken the following action respecting the communication (June 1, 1999) from Councillor Jack Layton:

(i) referred the following Recommendation No. (1) to the City Solicitor for report thereon to the meeting of Council scheduled to be held on June 9, 1999:

"(1) that the City immediately institute enforcement of the Anti-Idling Bylaw using a Part 3 Summons technique and that this enforcement be intensified during Smog Days;

(ii) approved the following Recommendation No. (2), as amended:

"(2) that the City Solicitor report directly to Council on June 9, 1999:

(i) on the status of the application for the "set fine" for the Anti Idling By- law which was approved unanimously by City Council early last year; and

(ii) on the applicability of the provisions of Section 102 of the Municipal Act to passing an Anti-Idling By-law;" and

(iii) referred the following Recommendations Nos. (3), (4) and (5) to the Chief Administrative Officer for report thereon directly to Council for its meeting scheduled to be held on June 9, 1999:

"(3) that staff initiate car pooling at all of the former City Hall locations for Summer 1999, in consultation with the Toronto Environmental Alliance which has experience in helping many large institutions develop and instigate car pooling plans.

(4) that staff be directed to immediately implement an employee parking policy for City Hall and all other work locations so that free commuting spaces become pay for parking, unless free parking is required because of a disability, contractual obligations, or an occupational health and safety concern; and that the Parking Authority of Toronto be responsible for the administration of the City Hall commuter spaces and a system be developed for other sites;

(5) that existing City of Toronto materials that have been developed by Toronto Public Health on how children, the elderly and people with lung and heart conditions can deal with smog days be distributed to the public, possibly via doctors offices in conjunction with the Ontario Medical Association; and that the Chief Administrative Officer and Budget Committee report directly to Council on the funds required to and the source of the funds."

The Strategic Policies and Priorities Committee submits the following report (May 18, 1999) from the Chief Administrative Officer:

Purpose:

To report on the status of the smog prevention and reduction recommendations adopted by City Council on May 13 and 14, 1998, and to outline a work plan for the next stages of implementation.

Funding Sources, Financial Implications and Impact Statement:

There are no immediate financial implications arising from the recommendations in this report. Subsequent reports will provide the financial implications of implementing each recommendation, including possible funding sources.

A potential funding source for anti-smog initiatives is the Federal Climate Change Action Fund. This fund seeks to allocate $150 million for climate change initiatives. Four types of project are to be funded: (i) technology early action measures; (ii) public outreach; (iii) foundation analysis; and (iv) science, impacts and adaptation.

Recommendations:

It is recommended that:

(1) the appropriate departments, under the coordination of the Toronto Inter-Departmental Environment (TIE) Team, explore opportunities for funding from the National Climate Change Fund to assist the City in meeting its smog reduction targets;

(2) City Council request the Toronto Transit Commission to provide distribution and marketing services for the TTC Annual Metropass Discount Program to City of Toronto employees as an incentive to encourage reduction of employee automobile use;

(3) City Council request the Toronto Transit Commission and the Finance Department to make TTC Metropasses available to City employees using a monthly payroll deduction program;

(4) in support of this Employee Trip Reduction Program, City Council actively request that the Federal Minister of Finance make employer-provided transit passes an income tax-exempt benefit for employees;

(5) the City join the International Council for Local Environmental Initiatives (ICLEI) and the Federation of Canadian Municipalities Partners for Climate Protection Program (PCP) in order to help the City monitor its progress in meeting its adopted greenhouse gas targets;

(6) the Commissioner of Works and Emergency Services and the Chief Administrative Officer, as the co-chairs of the Toronto Inter-Departmental Environment (TIE) Team, report annually on the City's progress in achieving the milestones of the Partners for Climate Protection Program (PCP);

(7) City Council endorse, in principle, the installation of the proposed natural gas capacity at the Lakeview Generating Station with the intention of an eventual full conversion from coal to natural gas;

(8) City Council request Ontario Hydro to adopt emergency measures which would provide for the reduction of power generation at the Lakeview Generating Station during smog alert days;

(9) the Chief Administrative Officer explore with Federal and Provincial officials ways and means available to ensure that transboundary air pollution issues affecting the City are addressed; and

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

Council Reference:

On May 13 and 14, 1998, City Council adopted a notice of motion containing fifty-four recommendations related to smog reduction and prevention. These recommendations had been previously adopted by the Councils of the former City of Toronto and the Municipality of Metropolitan Toronto. These recommendations requested that the Chief Administrative Officer report in the following areas:

(i) the development of an Employee Trip Reduction program;

(ii) a work plan to implement the 'Blueprint for Action - Smog Reduction in Toronto';

(iii) the development of a Public Education campaign on smog;

(iv) the development of a Municipal Smog-Alert Response Plan;

(v) the promotion of the City's Corporate Smog Initiatives and smog reducing commuting practices;

(vi) the development and implementation of Green Fleets initiatives;

(vii) the City participation in the "Ozone Transport Rulemaking" process;

(viii) purchasing 'Green' Power for the City; and

(ix) producing an annual Anti-Smog report.

This report responds to these requests.

Executive Summary:

Research into the status of the recommendations revealed that some of the recommendations have been implemented, others are in progress and some have yet to be acted upon. The attached report, "Smog Prevention and Reduction: Detailed Status Report and Work Plan" provides a summary and status of each of the recommendation adopted by Council, identifies the lead department(s) and division(s), and outlines the 1999-2000 work plan to further the implementation of recommendations.

In March 1999, the Smog Reduction Work Group, a sub-committee of the Toronto Inter-Departmental Environment (TIE) Team, was convened by the Healthy City Office to assist in the preparation of a co-ordinated response to Council's adopted anti-smog recommendations, and to oversee corporate policy and planning activities. The Work Group has, and will continue to report to TIE on a regular basis.

In order to report on the status of the notice of motion adopted by City Council in May 1998, the recommendations have been organized into seven issue areas:

(I) Smog Alert

(II) Smog Prevention and Reduction

(III) Public Education and Communications

(IV) Green Fleets

(V) Employee Trip Reduction

(VI) Targets, Measuring and Monitoring

(VII) Inter-governmental Relations

Status of Recommendations:

(I) Smog Alert:

The adopted Smog Alert recommendations requested that the City: develop and implement a Corporate and Municipal smog alert response plan, investigate reducing the amount of incineration at the Main Treatment Plant, ask the Toronto Transit Commission (TTC) to develop a strategy for smog alert days, and use electronic message sign boards along the 401 corridor, within City of Toronto boundaries, to alert the public of smog alert days and their health impacts. Many of the Smog Alert related recommendations have been implemented. A Corporate Smog Alert Response Plan was implemented during the 1998 smog season. The Plan was evaluated in early 1999. The Corporate Smog Alert Team met in April 1999; it was agreed that the Corporate Smog Alert Response Plan will include the same initiatives as 1998 with appropriate improvements as identified in the evaluation.

To date, a Municipal Smog Alert Response Plan has not been fully developed, however, there are many avenues of communication through which City of Toronto residents are notified of smog alert days, for example, smog alert messages posted on electronic sign boards along the 401 corridor, Don Valley Parkway and Gardiner Expressway. As part of the 1999-2000 Work Plan the Toronto Inter-Departmental Environment (TIE) Team's Smog Reduction Work Group will initiate the development of a broad-based municipal smog alert response plan for the 2000 smog season and bring forward a report in early 2000. This plan will be developed in conjunction with a broad-based public education campaign on smog.

(II) Smog Prevention and Reduction:

The adopted Smog Prevention and Reduction recommendation requested a work plan for the implementation of the strategy 'Blueprint for Action - Smog Reduction in Toronto', adopted, in principle, by City Council at its May 13, and 14, 1998, meeting; the development of a municipal vehicle inspection and maintenance program; and that the City promote its corporate smog initiatives.

There has been action on all three fronts. Briefly, the Blueprint will be used to guide and direct the work of the City and the Toronto Inter-Departmental Environment (TIE) Team's Smog Reduction Work Group. The Corporate fleet must comply with the emission standards of the Provincial Drive Clean Program. The Director of Fleet Management Services is currently investigating how best to meet the requirements of the Program. Based on a cost comparison, the Director will recommend in a report to the Corporate Services Committee whether the emissions testing should be contracted out or conducted in-house. Finally, the City is actively promoting its anti-smog initiatives through Urban Planning and Development Services Transportation Management Association (TMA) pilot project. This two year project will involve public and private employers. TMA's have been effective in other cities in assisting employers with savings on parking costs, reducing travel between work locations, office space reduction, and reducing pollution from employee travel.

In addition, Public Health staff, for the summer of 1999, will work in partnership with a large employer on the implementation of a smog alert response plan similar to the one implemented by the City of Toronto.

(III) Public Education and Communications:

The adopted Public Education and Communications recommendations request the development of a city-wide broad-based public education campaign on smog, and that the City consider establishing an Air Quality Advice Line and Dirty Diesel Hotline across the Municipality.

To date, initial steps have been taken to implement a comprehensive public education campaign. For the 1999 smog season the Healthy City Office and Public Health are distributing smog related information through local environmental events such as Pollution Probe's Clean Air Commute and City Councillors' Environment Day events and providing information displays at special events. The Toronto Inter-Departmental Environment (TIE) Team's Smog Reduction Work Group will identify an appropriate public education plan on smog and lead staff for the 2000 smog season.

With regards to the establishment of an air quality advice line and diesel hotline, the Ministry of Environment currently operates a Diesel Hotline through its public call centre. This existing diesel hotline could be used as part of a public education campaign on smog. The possibility of setting up an air quality advice line will be considered by the Smog Reduction Work Group as part of the development of a public education plan. The Work Group will report on these plans in early 2000.

(IV) Green Fleets:

The adopted Green Fleets recommendations request the convening of a Corporate Green Fleets Committee to: replace motorized vehicles with non-motorized alternatives, substitute currently used fuels with less polluting alternative fuels, and prepare a report on the feasibility and cost of implementing a green fleet strategy. In addition, the motion requests the adoption of specific emissions reduction targets for the City fleets.

The convening of a Corporate Green Fleets Committee in December 1997 has been important to the work in this area. A Corporate Green Fleets Strategy Status Report was submitted to the Toronto Inter-Departmental Environment Team (TIE) on June 3, 1998. The report provides information on the steps that are being taken to develop a corporate green fleet strategy directed at reducing smog causing emissions from City vehicles and equipment.

The Corporate Green Fleets Committee will reconvene in the Fall of 1999. At that time, it will study the feasibility of reducing fleet emissions by 50 percent, and report to Council on the Green Fleet strategy.

(V) Employee Trip Reduction:

The adopted Employee Trip Reduction recommendations request the development of a comprehensive auto trip reduction program be developed for the City, and that a survey of employee travel be conducted.

An Employee Trip Reduction Program (ETRP) is being developed in a phased approach by the Healthy City Office and Urban Planning and Development Services. The initial phase of this program will concentrate on the design and implementation of incentives encouraging employees to use public transit. This report recommends that City Council approve the use of payroll deduction for payment of TTC Metropasses for City of Toronto employees. The ease of this Metropass purchasing process would create a convenience incentive to employees interested in public transit. We also recommend that City Council request that the Federal Minister of Finance make employer-provided transit passes an income-tax exempt benefit for employees.

Subsequent phases of the ETRP will be developed following a comprehensive survey of employee travel, to be conducted by Urban Planning and Development Services and The Healthy City Office. Subsequent phases will address parking allowance for City employees, ridesharing, and telecommuting. The next phase of the ETRP will be reported on in early 2000.

To facilitate the development and implementation of employee trip reduction initiatives a $50,000.00 Clean Air Action Fund has been established under the Toronto Atmosphere Fund.

(VI) Targets, Measuring and Monitoring:

The adopted recommendations request the adoption of specific emissions reduction targets for the Toronto Transit Commission (TTC) and the City of Toronto; the purchase of green power for the City; monitoring the economic benefits of implementing anti-smog action and monitoring emissions reductions.

There has been action on most of the adopted recommendations. City Council on May 13, 1998, adopted all of the recommended targets in the motion. The City will be able to monitor its progress in achieving emissions reduction targets with a database being set up by Works and Emergency Services to quantify and monitor municipal and corporate greenhouse gas and air pollution emissions. It is recommended that the City join the International Council for Local Environmental Initiatives (ICLEI) and the Federation of Canadian Municipalities Partners for Climate Protection Program (PCP) in order to help the City monitor its progress in meeting its adopted greenhouse gas targets, and to assist in learning from the experience of other cities.

With regards to the purchase of green power for City use, the Environmental Task Force's (ETF) Sustainable Energy Use Work Group is developing a Sustainable Energy Use Plan for the City that will guide decision-making and policy development on energy use for the City; and help move the City from its dependence on fossil fuels to alternative green energy sources such as wind and solar power. The Energy Use Plan will report on the availability of green power sources, renewable energy targets, and demand and supply-side options for the City. The report will be completed during the summer of 1999.

(VII) Intergovernmental Issues:

The adopted intergovernmental recommendations ask City Council to support the lobbying efforts of the Board of Health to other levels of government on greenhouse gas emissions reduction; to participate in efforts to deal with transboundary air pollution; and request Ontario Hydro to adopt emergency measures during smog alert days.

City Council endorsed the actions of the Board of Health with the May 13, 1998, motion.

With regards to the issue of transboundary air pollution, the Council of the former City of Toronto concluded that due to constitutional restrictions on the ability of the City to participate directly in international negotiations, the most effective way for the City to participate in transboundary air pollution negotiations is in partnership with the Province.

City Council's request regarding emergency measures for smog alert days was not forwarded to Ontario Hydro. In light of the December 15, 1998 announcement to investigate the development of a natural-gas cycle power plant at the Lakeview Generating Station site, this report recommends that City Council endorse, in principle, the installation of the proposed natural gas capacity at Lakeview with the intention of an eventual full conversion from coal to natural gas in order to reduce air pollution emissions.

The report also recommends that City Council ensure that the issues highlighted in this report form part of the inter-governmental agenda for the City of Toronto in its involvement with the Greater Toronto Services Board, the Association of Municipalities of Ontario, the Federation of Canadian Municipalities, and other related forums.

Work Plan:

The following outlines the 1999 - 2000 work plan for the recommendations which have yet to be acted upon. The work plan has been agreed to by all the identified departments.

What is to be achieved Timelines Responsibility
Development of a city-wide public education campaign on smog and smog alert response plan for the 2000 smog season. This process will also assess the feasibility of an Air Quality Advice Line. Report in early 2000 Toronto Inter-Departmental Environment (TIE) Team Smog Reduction Work Group
Investigate and report on the feasibility of road closures during smog alert days Report by June 1999 Works and Emergency Services
Work with the TTC and Go Transit in developing a contingency transportation plan during smog alert days. Report by June 1999 Works and Emergency Services
For the 1999 Smog season distribute educational material on smog to residents. Spring/Summer 1999 Healthy City Office and Public Health
Study the feasibility of reducing fleet emissions by 50 percent. Fall 1999- early 2000 Corporate Green Fleets Committee
Report on the feasibility and cost of implementing a Green Fleet Strategy for the Corporation. Fall 1999 - early 2000 Corporate Green Fleets Committee
Conduct a survey of employee travel for the Corporation Spring/Summer 1999 Healthy City Office and Urban Planning and Development Services
Develop next phases of an employee trip reduction program for the Corporation. Report in early 2000 Healthy City Office and Urban Planning and Development Services
Report on the feasibility of committing to purchasing 25 percent of electricity used-in house by the City of Toronto from green power sources. Summer of 1999 Environmental Task Force's Sustainable Energy Use Group
Report on a mechanism to monitor the environmental, social, and economic impacts of City initiatives. Fall 1999 Healthy City Office
Annual Anti-Smog Report Annual Healthy City Office
City Council ensure that the issues highlighted in this report form part of the intergovernmental agenda for the City of Toronto in its involvement with the Greater Services Board, Association of Municipalities of Ontario, the Federation of Canadian Municipalities, and other related forums. On-going

Conclusion:

The smog reduction recommendations adopted by City Council present an ambitious set of targets and initiatives. This report presents an update of activities already underway and outlines a Work Plan to deal with smog for 1999 - 2000.

A review on the status of adopted anti-smog recommendations demonstrates that the City has responded with many actions which are, and will, contribute to smog reduction in the City. The work that is currently underway represents the first steps in an on-going process to deal with the sources of smog both within the Corporation and the City. The implementation of existing anti-recommendations will also spawn opportunities to expand and build new initiatives.

There is now an opportunity for the City to demonstrate its leadership and commitment as a corporation in taking urgent action against smog by committing to the on-going process of smog reduction. The City is in a unique position to play a proactive and leading role, and to create opportunities for City employees to contribute directly through their own practices towards reducing smog. Toronto can be a role model for cities and corporations in Canada and the world.

Contact Names:

Lisa Salsberg, Healthy City Office, Tel.: 392-1086; Fax: 392-0089;

email: lsalsber@toronto.ca

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Smog Prevention and Reduction

Detailed Status Report and Work Plan

Healthy City Office

City of Toronto

May 18, 1999

Table of Contents

(1) Introduction

(1.1) Council Reference

(1.2) Smog Reduction Work Group

(2) Status of Smog Reduction Recommendations

(2.1) Smog Alert

(2.2) Smog Prevention and Reduction

(2.3) Public Education and Communication

(2.4) Green Fleets

(2.5) Employee Trip Reduction

(2.6) Targets, Measuring and Monitoring

(2.7) Intergovernmental Relations

(3) Conclusion

(4) Recommendations

(5) Appendices

(1) 1999 - 2000 Work Plan

(2) Blueprint for Action - Smog Reduction in Toronto

(3) Table of Status of Recommendations

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(1) Introduction:

Over the last several years, the Greater Toronto Area (GTA) has earned the reputation of being one of the smoggiest metropolitan areas in Canada. Smog is a distinct form of poor air quality. It occurs on hot summer days when a combination of toxic gases and fine particles forms through a series of chemical reactions triggered by sunlight and heat. Each summer Toronto experiences a number of "smog episodes" or "smog days" on which air quality falls well below acceptable health standards. During the summer of 1998 alone, three separate Air Quality Advisories were called by the Ministry of Environment which lasted a total of seven days.

The negative impacts of poor air quality upon the health of citizens, the environment, and the economy have been documented in a number of reports, including "Smog: Make It or Break It", "Catching Your Breath: A Corporate Model for Clean Air" and "Catching Your Breath: Partnerships for Clean Air", produced by the former City of Toronto's Healthy City Office; and "Outdoor Air Quality: Issues and Concerns" and "Outdoor Air Quality and Respiratory Health" produced by the Public Health Department.

Most recently, as part of the process for setting Canada Wide Standards (CWS) for various air pollutants, the Federal - Provincial Working Group on Air Quality Objectives and Guidelines released the "Ground-level Ozone Science Assessment Document". The report states that the negative health impacts for ground-level ozone are being documented at levels well below (5 times) the current National Ambient Air Quality Objective for ozone. What is of concern about this finding is that there is mounting evidence that ground-level ozone concentrations are increasing in urban areas. Ground-level ozone, a toxic and irritant gas even at minimal quantities, is the main component of smog in Toronto. The David Suzuki Foundation's report "Taking Our Breath Away: The Health Effects of Air Pollution and Climate Change" warns that the production of ground-level ozone, and urban smog, is on the rise due to increasingly hot weather resulting from increasing greenhouse gas emissions (caused by the combustion of fossil fuels).

Deteriorating air quality results in higher rates of asthma attacks; damage to plants, crops, and building; and threatens Toronto's tourism industry, and business in general according to the Provincial report Ontario's Smog Plan released in January 1998. Smog is one of the most persistent air quality problems facing Ontario.

1.1 Council Reference:

On May 13 and 14, 1998, City Council adopted a notice of motion containing fifty-four recommendations related to smog reduction and prevention. These recommendations had been previously adopted by the Councils of the former City of Toronto and the Municipality of Metropolitan Toronto.

The anti-smog recommendations adopted by City Council reflect the diversity of local sources of smog causing pollutants, including motor vehicles and other modes of transportation, industries and utilities. The recommendations prescribe action in the major smog areas. They also deal with the role of the City as a large employer and emitter of pollutants that can result in smog formation.

1.2 Smog Reduction Work Group:

In March 1999, the Smog Reduction Work Group, a sub-committee of the Toronto Inter-Departmental Environment (TIE) Team, was convened by the Healthy City Office to assist in the preparation of a co-ordinated response to Council's adopted anti-smog recommendations, and to oversee corporate policy and planning activities. The Work Group has, and will continue to report to TIE on a regular basis.

(2) Status of Smog Reduction Recommendations:

In order to report on the status of the notice of motion adopted by City Council in May 1998, the recommendations have been organized into seven issue areas:

(2.1) Smog Alert;

(2.2) Smog Prevention and Reduction;

(2.3) Public Education and Communications;

(2.4) Green Fleets;

(2.5) Employee Trip Reduction;

(2.6) Targets, Measuring and Monitoring; and

(2.7) Intergovernmental Relations.

Research into the status of the recommendations revealed that some of the recommendations have been implemented, others are in progress and some have yet to be acted upon. Table1  (attached) provides a summary and status of each of the recommendation adopted by Council, and identifies the lead department(s) and division(s). This report summarizes the recommendations which were adopted, provides their current status, and outlines the 1999-2000 work plan to further the implementation of the recommendations.

2.1 Smog Alert:

Adopted Recommendations:

(a) Corporate Smog Alert: To implement a corporate-wide Smog Response Plan, including developing an information brochure for employees on the health impacts of smog, and what they can do to reduce their own contributions to the smog problem and investigate road closures during smog alert days.

(b) Electronic Sign Boards: Request the Minister of Transportation to authorize the use of electronic sign boards to alert the public to the air quality index and for similar public health announcements.

(c) Toronto Transit Commission: Encourage the Toronto Transit Commission not to cut any more of their services, ask the TTC to develop a strategy for Smog Alert Days, and work with the Toronto Transit Commission (TTC) and GO Transit to develop contingency transportation plan.

(d) Incineration at the Main Treatment Plant: The Commissioner of Works and Emergency Services be requested to examine the possibility of reducing the amount of incineration at the Main Treatment Plant, specifically on smog alert days.

(e) City-Wide Smog Alert Response Plan: That the City of Toronto develop the means to implement a City-wide Smog Alert Response Plan, activated by the Medical Officer of Health, to come into effect when the Provincial Air Quality Index (AQI) is predicted to reach a level of 50, starting in the spring of 1998. (This recommendation is embodied in the Blueprint for Action - Smog Reduction in Toronto' (please refer to Appendix 2) adopted, in principle, by City Council at its May 13 and 14, 1998 meeting.)

Status of Recommendations:

(a) The Medical Officer of Health submitted a report to City Council outlining a Corporate Smog Alert Response Plan at its meeting of June 3 and 4, 1998. The Plan was unanimously adopted by City Council at that meeting. This Plan is activated by the Medical Officer of Health when the Provincial Air Quality Index (AQI) reaches a level of 50 (the scale ranges from (0-100+) which indicates that the quality of the air is poor. Each City division developed and implemented their Divisional Plan. Actions taken by City departments and employees during the 1998 Smog Alert Season included:

(i) the suspension of all non-essential vehicles;

(ii) suspension of activities that involve the use of oil-based paints, solvents and cleaners;

(iii) suspension of activities requiring gas powered equipment;

(iv) suspension of pesticide spraying activities;

(v) suspension of re-fueling activities for all non-essential municipal vehicles until after dark on Smog Alert Days; and

(vi) air-conditioning units in municipal offices were set to warmer temperatures and staff were allowed to dress casually.

Fact sheets outlining the Corporation's Smog Alert Response Plan and brochures outlining the health effects of smog were produced and distributed to all City departments and employees. The Plan was evaluated in early 1999 in order to assess if the Smog Alert Notification Protocol succeeded in informing city staff of smog alerts; if staff were able to implement Divisional Smog Alert Response Plans during a Smog Alert period; and if staff received and were aware of communication and educational Smog Alert materials.

The evaluation received an overall response rate of 50 percent. The evaluation revealed that across all divisions, employees were more aware of the Corporate Smog Alert Plan (67 percent) than their own Divisional Response Plan (43 percent). Additional emphasis may be needed in 1999 on the specific activities to be modified within each division. Further, 36 percent of those employees that were aware of their Divisional Plans modified their work activities during a smog alert.

The Corporate Smog Alert Team met in April 1999 to confirm the Divisional Response Plans and notification for the 1999 smog season. The Team agreed that the Corporate Smog Alert Response Plan would include the same initiatives as 1998 with appropriate improvements as identified in the evaluation.

(b) A copy of the recommendations adopted by City Council at its meeting held on May 13 and 14, 1998, were forwarded to the Provincial Minister of Transportation on May 21, 1998. The Provincial Ministry of Transportation manages, and is responsible for, posting information on 20 (out of 30) electronic sign boards along the 401 corridor. Depending on the time of day and time of year different messages are displayed. Daily, during peak periods (6:30 a.m. to 10:00 a.m. and 3:00 p.m. to 7:30 p.m.), traffic safety and congestion management messages are displayed. During off-peak periods general public education messages relating to air quality, such as promoting the use of public transit, and urging drivers to keep their vehicles in good working condition, are displayed. During the 1999 smog season, smog related public education messages will be displayed during the last two weeks of July. Messages displayed on the Highway 401 changeable message signs include: "Help Reduce Smog Keep Your Vehicle Tuned", "Let's Clear The Air Tune Up Your Vehicle", "Help Cut Smog Keep Vehicles Tuned", "Reduce Congestion by Car Pooling", "Share A Ride Try Car Pooling", and "Cut Travel Costs by Car Pooling".

Currently the Air Quality Index (AQI) is not displayed. According to the Ministry, the AQI is not posted because of two main reasons. First, they cannot obtain the information early enough to display it and program it into their computerized messaging system. Second, the target audience, the daily commuter, will not see the AQI because during peak commuting time safety and congestion management messages are displayed. The City posts smog alert information on the electronic sign boards on the Don Valley Parkway and the Gardiner Expressway, over which it has jurisdiction. The City displays messages such as "Smog Alert Tomorrow: Use Transit" and "Smog Alert: Reduce Vehicle Use".

(c) A copy of the recommendations adopted by City Council were forwarded to the Toronto Transit Commission (TTC) on May 21, 1998. At its meeting of June 17, 1998, the Commission reviewed the "Anti-Smog Initiatives" plan adopted by City Council. The Commission endorsed the plan, and referred it to staff for a report back to the Commission. The staff report (November 30, 1998) outlines the TTC's strategy for smog alerts which is, and has been, to promote the market for, and use of, public transit as an alternative to the automobile. The TTC has the capacity to provide for the additional riders that would be expected to change their commuting habits on Smog Alert Days.

(d) Currently, there are plans to end incineration at the Main Treatment Plant by the year 2000. The Commissioner of Works and Emergency Services has indicated that, at present, it is not feasible to make significant adjustments to the amount of incineration on a daily basis.

(e) The strategy 'Blueprint for Action' was adopted, in principle, by City Council at its May 13 and 14, 1998 meeting. A component of the strategy proposes the development and implementation of a City-wide Smog Alert Response Plan, activated by the Medical Officer of Health, when the Provincial Air Quality Index (AQI) reaches a level of 50. To date, a Municipal Smog Alert Response Plan has not been fully developed, however, there are many avenues of communication through which City of Toronto residents are notified of smog alert days including: City controlled electronic sign board on the Don Valley Parkway and the Gardiner Expressway (smog alert messages are posted); the media (television, radio and print); and notification from the Ministry of Environment and Energy. In addition, Public Health staff are exploring a partnership with a large employer in Toronto to see if they can implement smog alert measures similar to those that the City of Toronto has implemented. As part of the 1999-2000 work plan, the TIE's Smog Reduction Work Group will initiate the development of a broad-based municipal smog alert response plan for the 2000 smog season. The Work Group will bring forward a report in early 2000. Currently, the Province is finalizing a Municipal Smog Alert Response Guide, which may provide financial support for the development of municipal smog alert plans.

Next Steps - 1999/2000 Work Plan:

(a) Road Closures during Smog Alert Days: Works and Emergency Services will investigate and report on the feasibility of road closures during smog alert days by June 1999.

(b) Transportation Contingency Plan: Work and Emergency Services will work with the TTC and Go Transit in developing a contingency transportation plan during smog alert days by June 1999.

(c) The TIE's Smog Reduction Work Group will initiate the development of the municipal smog alert response plan and bring forward a report in early 2000.

2.2 Smog Prevention and Reduction:

Adopted Recommendations:

(a) 'Blueprint for Action - Smog Reduction in Toronto': That the City develop the legislation, policies, programs and partnerships with business, other levels of government, non-government organizations, individuals and international agencies required to implement the strategy 'Blueprint for Action - Smog Reduction in Toronto' outlined in the report 'Catching Your Breath - Partnership for Clean Air'. Please see appendix 2 for the recommendations outlined in the Blueprint.

(b) Municipal Inspection and Maintenance Program: City Council seek the necessary legislation to permit the City of Toronto to implement a municipal inspection and maintenance program for vehicles licensed within the City of Toronto, at full cost recovery.

(c) Across the Municipality, that the City promote its own corporate smog reduction program, and in conjunction with area employers develop a program to promote and facilitate smog-friendly commuting practices.

Status of Recommendations:

(a) The strategy 'Blueprint for Action - Smog Reduction in Toronto', (see appendix 2) embodied in the former City of Toronto's report 'Catching Your Breath - Partnership for Clean Air", was adopted, in principle, by City Council at its May 13, and 14, 1998 meeting. The Blueprint recommends specific actions to reduce smog across the City of Toronto and outlines policies and initiatives (in the areas of municipal smog alert; smog prevention; communication and education; and commitment) required to achieve those targets.

The Smog Reduction Work Group, a subcommittee of TIE, was formed in early 1999 to assist in the preparation of a co-ordinated response to Council's adopted recommendations, and oversee corporate policy and planning activities in this area. The Blueprint will be used to guide the anti-smog work of the City and the Work Group. Stakeholders will be invited to participate in the subcommittee.

Highlights of City of Toronto initiatives and policies that have been implemented, or are in the process of being implemented, that further the goals of the Blueprint include:

Implemented:

(i) the convening of the Smog Reduction Work Group;

(ii) City Council's re-commitment to support the work of the Toronto Atmospheric Fund (TAF);

(iii) the expansion of the Better Building Partnership Program to the entire City;

(iv) City Council at its December 16, 1998 meeting re-adopted, as a city-wide target for the new City of Toronto, a carbon dioxide emissions reduction goal of 20 percent relative to 1990 levels by the year 2005;

(v) Anti-Idling By-law came into effect in 1996. This by-law limits idling to no more than three minutes in a given 60 minute period (transit is exempt); and

(vi) City Council at its December 16, 1988 meeting adopted, in principle, a ban on pesticide use on all City property.

Work in Progress:

(i) the Sustainable Transportation Plan being developed by the Sustainable Transportation Working Group of the Environmental Task Force;

(ii) the Sustainable Energy Use Plan being developed by the Sustainable Energy Use Working Group of the Environmental Task Force;

(iii) a Transportation Management Association (TMA) pilot project (see Smog Prevention and Reduction section);

(iv) the setting up of a centralized database to monitor and quantify municipal and corporate emissions and emissions reduction by Works and Emergency Services (see Targets, Measuring and Monitoring section);

(v) the Economic Development Committee at its meeting of March 29, 1999, unanimously supported a report from the Pedestrianisation Working Group recommending the development and implementation of a Pedestrianisation Policy for commercial and residential streets of Toronto; and

(vi) The City's support of the Toronto Renewable Energy Cooperative (TREC).

(b) City Council at its meeting on October 1 and 2, 1998 endorsed the actions by the Ontario Minister of the Environment to implement a mandatory vehicle inspection and maintenance program (Drive Clean Program). This multi-phased program, operated by private contractors and administered by the Ministry of the Environment (MOE), came into effect April 1, 1999. The first phase of the program involves mandatory testing for vehicles registered in the GTA, including Toronto, and in Hamilton-Wentworth. The MOE estimates that by the time the Drive Clean program is fully operational, it will reduce smog-causing pollutants from vehicles in the program area by 22 per cent.

At its April 13, 1999 meeting, City Council re-endorsed its support for the Drive Clean program and requested that the Commissioner of Works and Emergency Services report in the year 2000 on the experience of the Provincial program and whether the City of Toronto should consider carrying out its own monitoring program.

The Corporate fleet must comply with the emission standards of the Drive Clean Program. The Director of Fleet Management Services is currently investigating how best to meet the requirements of the Program. Based on a cost comparison, the Director will recommend in a report to the Corporate Services Committee whether the emissions testing should be contracted out or conducted in-house. The latter option would require the City to apply to the Province to become an accredited Drive Test Facility.

(c) There are two City initiatives that promote the City's smog reduction programs. First, Urban Planning and Development has received $20,000.00 from the Federation of Canadian Municipalities and Health Canada to form a Transportation Management Association (TMA). TMA's are formed when employers cooperate to promote transit, ridesharing, telecommuting, cycling and walking as an alternative to single occupant car travel. This two year pilot project will involve public and private and employers. TMA's can be a useful tool both for employers and employees. Benefits for employers can include: savings on parking costs, reduced travel between work locations, savings on office work space, and reduction of employee travel emissions. For employees benefits can include: improved flexibility in coordinating work and personal schedules, improvements in quality of commute and potential savings on commuting. Once formed the TMA will provide the City the opportunity to share and promote its corporate smog reduction strategies and corporate smog alert response plan. The TMA pilot project will kick-off with a breakfast at the Board of Trade on June 8, 1999 to introduce the TMA pilot project to the business community.

In addition, Public Health staff for the summer of 1999 will work in partnership with a larger employer in Toronto on the implementation of a smog alert response plan similar to the one implemented by the City of Toronto.

2.3 Public Education and Communication:

Adopted Recommendations:

The following two recommendations were referred to the Chief Administrative Officer for further consideration and report thereon to City Council:

(a) Public Education Campaign: Consider and report on the development a broad-based public education campaign on smog, with attention to the activities outlined in the strategy 'Blueprint for Action - Smog Reduction in Toronto' adopted, in principle, by City Council (Appendix 2). This campaign should include: what residents can do to reduce their own emissions and ways to promote the City's corporate smog reduction program to other employers and businesses; and

(b) Air Quality Advice Line and Diesel Hotline: As part of a public education campaign, consider and report on the feasibility of establishing an Air Quality Advice Line and Dirty Diesel Hotline across the Municipality.

Status of Recommendations:

(a) Three fact sheets detailing the effects of smog on seniors, children, and people with lung and heart conditions were produced by Toronto Public Health. These fact sheets were made available to the public during the 1998 smog season. For the 1999 smog season the Healthy City Office and Public Health are distributing smog related information through local environmental events such as Pollution Probe's Clean Air Commute and City Councillors' Environment Day events and providing information displays at special events. The Smog Reduction Work Group will identify an appropriate public education plan on smog and lead staff for the 2000 smog season. The Work Group will report on the plan in early 2000.

(b) Currently, the Ministry of Environment operates a Diesel Hotline through its public call centre. This existing diesel hotline could be used as part of a public education campaign on smog. Through the call centre the public can report vehicles emitting visible smoke from their exhaust pipes. Subsequently, the driver of the polluting vehicle will be advised that they may be in contravention of air pollution laws. In addition on April 1, 1999 the Ministry expanded its Smog Patrol program to enforce Drive Clean requirements based on Ontario's vehicle emissions regulation (Regulation 361/98). Regulation 361/98 sets emission standards for light-duty and heavy-duty vehicles and makes it an offence to operate a vehicle emitting visible emissions of smoke for more than 15 seconds in any five-minute period. Through this on-road program, Provincial officers working with enforcement agencies identify and ticket drivers of polluting vehicles that do not comply with the regulation. Also, emission checks points are set up where officers visually observe the vehicle's exhaust, and/or test the vehicle's exhaust. If the vehicle does not meet the standards for emissions, the driver will be issued either a warning, offence notice and/or field order to have the vehicle repaired.

Next Steps -1999/2000 Work Plan:

(a) Public Education Plan on Smog: For the 1999 smog season the Healthy City Office and Public Health will be distributing smog related information through local environmental events such as Pollution Probe's Clean Air Commute and City Councillors' Environment Day events and providing information displays at special events. The Smog Reduction Work Group will identify an appropriate public education plan on smog and lead staff for the 2000 smog season. The Work Group will report on this plan in early 2000.

(b) Air Quality Advice Line: The possibility of setting up an advice line will be considered by the Smog Reduction Work Group as part of the development of a public education plan on smog and a municipal smog alert response plan. The Work Group will report on these plans in early 2000.

In addition, the Environmental Task Force's (ETF) Education and Awareness Work Group is dealing with the question of how to promote education on environmental issues. The Smog Reduction Work Group has also referred the assessment of an air quality advice line to the Education and Awareness Work Group. The report of the ETF is expected to be completed in the summer of 1999.

2.4 Green Fleets:

Adopted Recommendations:

(a) Green Fleets Targets: City Council, through the corporate Green Fleets Committee, adopt targets based on 1997 levels that would achieve:

(i) a minimum 20 percent increase in zero emission vehicles by 2005 (includes human powered vehicles);

(ii) a minimum 20 percent increase in ultra low energy vehicles by 2005; and

(iii) a minimum 20 percent reduction in fuel consumption by 2005.

(b) Reducing Corporate Fleet Emissions: The Chief Administrative Officer consider and report to City Council on adopting a "Green Fleet" target of reducing smog causing pollutants from its own fleet by 50 percent by 2005, through the purchase of an increased number of alternative fuel vehicles, reduction of fleet numbers, driver training programs, and vehicle replacement with non-car transportation modes.

(c) Corporate Green Fleets Committee: Convene a corporate Green Fleets Committee to:

(i) replace motorized vehicles with non-motorized alternative and more efficient systems;

(ii) substitute currently used fuels with less polluting alternative fuels, increasing fuel efficiency and optimizing motor vehicle technology; and

(iii) as a first step prepare a report on the feasibility and cost of implementing a green fleet strategy and report back to Council on the implementation of that strategy.

Status of Recommendations:

(a) The three Green Fleet targets outlined in the May 13 and 14, 1998 motion, adopted by City Council, have been considered by the Corporate Green Fleets Committee. The work of the Committee, convened in December 1997, has been put on hold until the Corporate Fleet Management Review is completed. The adoption of the suggested targets will be considered once the Committee reconvenes in the Fall of 1999.

(b) The Corporate Green Fleets Committee has undertaken a series of initiatives to reduce pollution emissions from the City fleets, such as reviewing opportunities to reduce the size of the fleet as a result of amalgamation, and expanding the use and purchase of alternative fuel vehicles. Once the Committee reconvenes in the Fall of 1999, it will consider and report on the feasibility of reducing corporate fleet emissions by 50 percent.

(c) A Green Fleets Committee was convened in December 1997. A Corporate Green Fleets Strategy Status Report was submitted to the Toronto Inter-Departmental Environment Team (TIE) on June 3, 1998. The report provides information on the steps that are being taken to develop a corporate green fleet strategy directed at reducing smog causing emissions from City vehicles and equipment.

Initiatives undertaken by the Corporate Green Fleets Committee which will contribute to significant cost reductions in the operation of the fleet and reduced emissions include the following:

(i) Reviewing opportunities for reducing the size of the fleet as a result of amalgamation: This initiative is in progress.;

(ii) Utilizing bicycles where feasible, in areas such as building and works inspection, park and police operations: Currently, there are some departments which use bicycles in their day-to-day operations, including Parks and Recreation (4 bikes); Animal Control Unit (4 bikes); and the police;

(iii) Continuing driver education and Can-Bike training for employees: Can-Bike training is available throughout the year for employees;

(iv) Use of natural gas, dual fuel, propane and electric vehicles and equipment currently in the fleet;

(v) Expanding the use of alternative fuel vehicles through the purchase of new dedicated natural gas pickups and vans: In the fall of 1998, Fleet Management Services delivered eight new, natural-gas powered trucks to Works and Emergency Services and Parks and Recreation. There is an on-going replacement program to replace old vehicles, as they are decommissioned, with alternative fuel vehicles. Whether a vehicle is replaced with an alternative fuel one depends on need and availability of fuel site locations. For example, certain parts of the City have few commercial gasoline stations that can service natural-gas vehicles;

(vi) Reducing idling of vehicles through the installation of idle timers on approximately 300 vehicles: To date, 350 work vehicles have been installed with idle timers. This initiative is on-going;

(vii) Emissions testing of gasoline powered vehicles: Please refer to Smog Prevention and Reduction section for status;

(viii) Utilizing route optimization software in Solid Waste Management: The Solid Waste Management Department is using route optimization software. This will reduce the number of vehicles required and their emissions; and

(ix) Participating in the Green Fleets Partnership: The partnership is, composed of thirteen cities throughout North America, organized and facilitated by the International Council for Local Environmental Initiatives (ICLEI). The primary focus of Green Fleets is greenhouse gas reduction. The project aims to develop policies and practices that enable municipal leaders and their staff to assess and implement a variety of measures to reduce local demand for travel and transportation energy.

The committee's work plan includes, among other things, exploring initiatives in the following areas:

(i) Including emissions data information requirements in purchasing specifications for new vehicle purchases: Currently, suppliers must provide emissions data to Fleet Management Services on vehicles being considered for purchasing;

(ii) Establishing an emissions baseline for vehicles currently in fleet: An emissions baseline will be developed once the emissions testing is implemented;

(iii) Creating a City bicycle pool for short term work usage by City staff;

(iv) Exploring new technology and vehicles including alternatives to the use of 2-stroke engines currently used in power mowers and leaf blowers: This research is on-going; and

(v) Exploring opportunities for increasing the number of natural gas refueling locations to enable greater use of natural gas vehicles: Fleet Management Services is in consultation with Enbridge Gas on this issue.

Next Steps - 1999/2000 Work Plan:

(a) Reducing Corporate Fleet Emissions: Once the Corporate Green Fleets Committee reconvenes in the Fall of 1999, it will consider and report on the feasibility of reducing corporate fleet emissions by 50 percent.

(b) Feasibility and Cost of Implementing a Green Fleet Strategy: The Corporate Green Fleets Committee will report to Council on the Green Fleet strategy once it has reconvened in the Fall of 1999.

2.5 Employee Trip Reduction:

Adopted Recommendations:

(a) Employee Trip Reduction Program: A comprehensive auto trip reduction program be developed and implemented with the following first steps:

(i) effective December 31, 1997, revise the employee parking policy for City Hall and all other work locations so that free commuting spaces become pay for parking, unless free parking is required because of a disability, contractual obligations, or an occupational health and safety concern; and that the Parking Authority of Toronto be responsible for the administration of the City Hall commuter spaces and a system be developed for other sites;

(ii) establish a corporate Clean Air Action Fund with $100,000.00 in seed money and/or also direct the revenue generated from the paid employee commuter parking to this fund; upon establishment of the fund, the Anti-smog Working Group in conjunction with the Healthy City Office report back on projects for use of this fund such as a pedestrian/bicycle commuter facility in City Hall; bulk purchase program for TTC and GO Transit passes; and a plan for telecommuting options, car pooling, variable work hours, a flexible dress code and transit, walking and bicycling incentives; and

(iii) explore alternative sources of funding such as the Toronto Atmospheric Fund (TAF) to implement projects that provide incentives for employee trip reduction.

(b) Survey of Employee Travel: A survey of employee travel (commuting and work related) patterns be undertaken every two years, to facilitate the assessment of progress in achieving emission reduction targets and to assist in the development and achievement of employee trip reduction targets.

Status of Recommendations:

(a) An Employee Trip Reduction Program (ETRP) is being developed in a phased approach by the Healthy City Office and the Planning Division. The former Municipality of Metropolitan Toronto Planning Department previously undertook research and analysis for an employee trip reduction pilot. An ETRP is based on the philosophy of increasing awareness among employees regarding smog created by automobile emissions, and generating incentives and disincentives to change the transportation mode chosen in coming to work. Research from a number of different cities has shown that incentives stimulate reduction of car use and greater use of public transit, cycling and walking.

There are many studies and reports that provide detailed information and analysis in support of ETRP. Three such reports include: the "Travel Demand Management Technical Overview" and the "Short-Term Pro-Transit Report" produced by the former Municipality of Metropolitan Toronto, and "Commuting in the Greenhouse: Automobile Trip Reduction Programs For Municipal Employees" produced by the International Council for Local Environmental Initiatives (ICLEI). According to these sources, a comprehensive ETRP contains a mixture of services and incentives including: Ride-Sharing (such as car pooling and van pooling); Transit Incentives (such as ticket subsidies); Parking Policies (such as the elimination on free parking for single-occupancy vehicles); Trip Elimination (such as telecommuting and variable work hours); Bicycle and Pedestrian Incentives; and Transportation Management Associations. The specific mix of incentives and disincentives will vary according to a number of factors, including work location/site and individual employee factors. The employee survey is an important tool in this assessment.

Public Transit Incentives:

The initial phase of this Program will concentrate on the design and implementation of incentives encouraging employees to use public transit. Discussions with the Toronto Transit Commission (TTC) indicated a willingness to fully support this Program. The TTC is offering its existing TTC Annual Metropass Discount Program to employees to stimulate the reduction in automobile use. This program offers the TTC Metropass on an annual basis, but with a discount of one month offered to employees who enroll in the Metropass program. Employees therefore pay for 11 months and receive 12 months of TTC Metropasses.

In order to make this program more attractive to employees, it is proposed that the mechanism for obtaining and paying for a TTC Annual Metropass be made convenient and easy. The TTC has offered to be responsible for providing all advertising and marketing information for this program to City employees, and to distribute Metropasses at centralized locations easily accessible to employees throughout the City. It is recommended that the TTC be requested to provide distribution and marketing services related to the TTC Annual Metropass Discount Program to employees throughout the City of Toronto, as an incentive to encourage reduction of automobile use.

In discussion with Payroll and Benefits staff of the Finance Department, the process of payment for purchase of TTC Metropasses via payroll deduction was explored. It is recommended that City Council approve the use of payroll deduction for payment of TTC Metropasses for City of Toronto employees, and that the distribution of such information be implemented and administered by Finance. The ease of this Metropass purchasing process would create a convenience incentive to employees interested in public transit.

The Tax Status of Employer Provided Transit Benefits:

At present, employer provided income tax-exempt transit passes are not available in Canada. This means that employer-paid passes to take public transit - the City of Toronto paying for its employees' Metropasses, for example - becomes a benefit to the employee which is designated as taxable under the Federal Income Tax Act. Any employee receiving an employer-paid transit pass will pay income tax on this benefit. The Amalgamated Transit Union, the Canadian Urban Transit Association, the Federation of Canadian Municipalities and the TTC, among other organizations, have been advocating a change in the way that the Federal Government taxes employer-provided transit passes. They are attempting to convince the Federal government to allow employers to provide their employees with income-tax exempt transit passes as an incentive to use public transportation. In the United States, where this benefit is available, transit expenditures among recipients have increased on average by 23 percent. Such an income tax-free benefit would create a powerful incentive to employees to switch to using public transit, significantly reducing pollution. It is recommended that City Council request the Federal government to make employer-provided transit passes an income tax-exempt benefit for employees.

Parking Policy at the City:

An important component of an ETRP is the parking allowance for City employees. Currently a number of employees are provided with access to free parking at their work location either as a function of compensation or because they are deemed to require their car for work related purposes. It is important to look at parking because studies have shown that the supply and price of parking play an important role in employees modal choice decisions. The provision of free parking by an employer is a critical factor in reducing the out-of-pocket cost of an auto trip, and thus making other modes of commuting, such as transit, less competitive.

Currently, the Facilities and Real Estate Division is drafting a new parking policy for the City. The policy will consider the related environmental, health and trip reduction issues.

Other ETRP Initiatives:

A Transportation Management Association (TMA) pilot project, facilitated by Urban Planning and Development Services, will work with employers to promote transit, ridesharing, telecommuting, cycling and walking as an alternative to the car. The Corporate Green Fleets Committee will be investigating the opportunities of creating a City bicycle pool for short term work usage by City staff.

To facilitate the development and implementation of employee trip reduction initiatives a $50,000.00 Clean Air Action Fund has been established under the Toronto Atmospheric Fund.

(b) Urban Planning and Development Services with the support of The Healthy City Office is conducting a survey of employee travel (commuting and work related) patterns for the new City. Previously, the former Municipality of Metropolitan Toronto Planning Department conducted a commute travel survey of Metro Hall employees. Amalgamation has resulted in employee movement to new work locations, and increased employee travel between work sites. The survey will aid in understanding where people work, how they travel to work, and how often they travel between work locations. This essential baseline of employee travel patterns is integral to the design of an effective and relevant ETRP for the City.

Next Steps - 1999/2000 Work Plan:

(a) Employee Trip Reduction Program (ETRP): Subsequent phases of the ETRP will be developed once the survey of employee travel is completed. The next phases of the ETRP will address parking allowances for City employees, ridesharing, and telecommuting. Urban Planning and Development Services and the Healthy City Office will report on the next phases of the ETRP in early 2000.

(b) Survey of Employee Travel: The survey will be distributed to employees in June 1999. During July and August 1999 the survey will be coded and analysed.

2.6 Targets, Measuring and Monitoring:

Adopted Recommendations:

(a) Toronto Transit Commission (TTC) Targets: Request that the TTC consider and report on adopting a plan of action for emissions reduction, including a 45 percent reduction target for NOx and VOCs, and a 25 percent reduction target for particulate matter emissions, and present the plan to the TTC Commissioners.

(b) Procurement of Green Power: Consider and report on committing to a 1999 target for purchasing 25 percent of the electricity used in-house by the City of Toronto from "Green" power sources, such as wind turbines and solar-powered generators; and challenging private sector companies to commit to the same 1999 target of 25 percent "Green" electricity purchases.

(c) City Emissions Targets:

(i) City Council adopt a target that surpasses the Provincial target and reduces corporate nitrogen oxides (NOx) and volatile organic compounds (VOCs) emissions by a minimum of 45 per cent, from 1995 to 2005; this reduction be designed to reduce Smog Episode Days from a record high in 1995 of 11 bad air days in Toronto (the highest recorded number in Canada), to two or less Smog Episode Days in 2005.

(ii) that the City of Toronto adopt a city-wide target to reduce NOx and VOCs emissions across the city by a minimum of 45 percent from 1995 to 2005.

(iii) that the City of Toronto adopt a city-wide target to reduce Smog Episode Days from a record high in 1995 of 11 to two or fewer Smog Episode Days in 2005.

(d) Monitoring Economic Benefits: A plan be developed to monitor the economic benefits accrued as a result of implementing the clean air actions recommended in this report.

(e) Monitoring Emissions Reductions: A program to monitor emissions reductions that accrue as the result of the City of Toronto's initiatives be commissioned and other actions be identified that will facilitate the city in meeting its reduction targets.

(f) Annual Anti-Smog Report: That the City of Toronto produce an annual Anti-Smog report detailing:

(i) Progress on achievement of the targets;

(ii) Steps taken to implement the Blueprint; and

(iii) Recommendations for future actions.

Status of Recommendations:

(a) A copy of the recommendations adopted by City Council at its meeting held on May 13 and 14, 1998 were forwarded the Toronto Transit Commission (TTC) on May 21, 1998. The TTC's strategy to deal with smog is to promote public transit use. According to the TTC the proposed targets may be difficult to meet because increased ridership increases the number of buses in circulation, which translates to more emissions. In order to reduce their emissions, the TTC currently has 125 alternative fuel buses in service, which run on compressed natural gas (CNG) instead of diesel. The 125 CNG buses is the maximum number the TTC can operate given the current alternative fuel infrastructure at the TTC. Also, the TTC is implementing an in-house vehicle emissions testing program, and has developed a compliance plan to implement the Provincial Drive Clean Program for its fleet.

(b) Currently, the Environmental Task Force's (ETF) Sustainable Energy Use Work Group is developing a Sustainable Energy Use Plan for the City that will guide decision-making and policy development on energy use for the City; and help move the City from its dependence on fossil fuels to alternative green energy sources such as wind and solar power. This process being carried out by a multi-sectoral work group that includes representation from residents, community/environmental groups, utilities, independent power producers, and city staff. The Plan will be integrated into the Environmental Plan being developed by the Environmental Task Force for the new City. The Environmental Plan will be presented to City Council early in 2000.

Research into available green power sources suggest that achieving a purchasing target of 25 percent of the electricity used in-house by the City of Toronto from green power sources is unfeasible at this time. According to senior members of the Sustainable Energy Use Working Group, using the EcoLogo definition of renewable energy (which excludes electricity generated from Niagara Falls), the grid presently does not have the capacity to provide 25 percent of renewable energy. In terms of the availability of renewable energy, not only is there a shortage of suppliers, but also the current low price of energy in Ontario (due to a heavily subsidized nuclear sector, and inexpensive fossil fuel-based energy generation) has created a market where higher priced renewable energy cannot compete. However, this situation is slowly changing. The passing of Bill 35, the Energy Competition Act, by the Provincial Government may provide the market conditions necessary to encourage the development of renewable energies. In addition, the City is supporting local renewable energy projects such as the work of the Toronto Renewable Energy Co-operative (TREC) and the TREC Windpower Co-op (WPC). TREC is planning to build a 660 kW wind turbine on Toronto's waterfront. The value of the TREC wind turbine is not only the energy it will generate, but also the awareness it is bringing about on sustainable energy issues.

The Sustainable Energy Use Plan for the City being developed by the Environmental Task Force's (ETF) Sustainable Energy Use Work Group will report on the availability of green power sources, renewable energy targets, and demand and supply-side options for the City. The report will be completed during the summer of 1999.

(c) City Council adopted all of the above noted City Emissions Targets.

(d) Works and Emergency Services with financial support from the Toronto Atmospheric Fund (TAF) is in the initial stages of setting up a centralized database that will quantify and monitor municipal and corporate greenhouse gas and air pollution emissions and emission reductions in the new City of Toronto. The development of a centralized emissions database, housed in the City, will support the quantification of the City's achievements in smog reduction; allow the City to track its progress in meeting its adopted smog and CO2 reduction targets; help develop sustainable air quality policies; and provide the information needed to investigate the potential for carbon trading at the City. The TAF Board of Directors has approved $25,000.00 to cover the cost of software and its installation, and to provide training and technical support for City staff involved in the project. The Technical Services Division will provide a staff resource for the implementation of the database and application models and data collection. Staff training to carry out this project will begin in the spring of 1999.

The setting up of a centralized database to track greenhouse gas emissions and emissions reduction complements the goals of the Partners for Climate Protection Program (PCP), a joint initiative of the International Council for Local Environmental Initiatives (ICLEI) and the Federation of Canadian Municipalities (FCM). The goal of the program is to help municipalities prepare and implement local climate action plans to reduce greenhouse gas emissions. To become part of the program a municipality is asked to make a public commitment, in the form of a resolution, to reduce 1990 levels of greenhouse gas emission in municipal operation by 20 percent within ten years of joining the program. Once members, municipalities follow a five milestone process for achieving tangible reductions of local greenhouse gas emissions. The five milestones include: (1) undertaking an inventory of energy use and emissions; (2) setting reduction target(s); (3) developing a local action plan; (4) implementation of the plan; and (5) monitoring and evaluating the success of reducing greenhouse gas emissions.

The former City of Toronto and the Municipality of Metropolitan Toronto were both members of the FCM 20 percent Club (the FCM 20 percent Club recently joined with ICLEI's Cities for Climate Protection Campaign to form the existing Partners for Climate Protection Program). It is recommended that the new City of Toronto become a member of the PCP program in order to help the City monitor its progress in meeting its adopted greenhouse targets, aid in the development of greenhouse gas emissions database, and to assist in learning from the experience of other cities.

(e) Anti-Smog Report: This report responds to the request for an anti-smog status report.

Next Steps - 1999 Work Plan:

(a) Monitoring Economic Benefits: The Healthy City Office will report in the fall of 1999 on a process for reporting on the State of the City. This will include a mechanism to monitor the environmental, social, and economic impacts of City initiatives.

2.7 Inter-governmental Relations:

Adopted Recommendations:

(a) Ontario Hydro - Lakeview Generating Station: Ontario Hydro be requested to adopt emergency measures which would provide for the reduction of power generation at the Lakeview Generating Station during smog alert days;

(b) Federal Ministry of the Environment: The Federal Minister of the Environment be requested to meet with City Officials to discuss collaborative efforts to reduce greenhouse gas emissions;

(c) Board of Health: City Council endorse the actions of the Board of Health in expressing to the Government of Canada its serious concern with Canada's predicted failure to fulfill its international commitment to stabilize carbon dioxide emissions at their 1990 levels by the year 2000;

(d) Board of Health: City Council endorse the actions of the Board of Health in requesting the Government of Canada to commit to a 20 percent reduction in greenhouse gas emissions from 1990 levels by the year 2005; conduct a comprehensive baseline study of Federal taxes, grants and subsidies which impact on that commitment, and develop and implement the regulatory framework, tax policies and incentive programs necessary to achieve that goal;

(e) Board of Health: City Council endorse the actions of the Board of Health in requesting the Province of Ontario to commit to a 20 percent reduction in greenhouse gas emissions from 1990 by the year 2005; examine the policies, regulations, subsidies and incentives that impact on that commitment; and develop and implement the planning policies, tax incentives, subsidies and regulations necessary to achieve that goal; and

(f) Trans-boundary Air Pollution: The Chief Administrative Officer report to City Council by June 1998, on participating in the "ozone transport rulemaking" process by EPA through a petition under section 126 of the Clean Air Act and/or through the "international intervention" section of the Act.

Status of Recommendations:

(a) Council's request was not forwarded to Ontario Hydro.

Coal-fired generating stations are major sources of smog, acid rain, greenhouse gases and toxins such as mercury. The Lakeview Generating Station's impact on air quality has been documented in a number of reports produced by Public Health.

On December 15, 1998, a consortium composed of CU Power, Hydro Mississauga, Ontario Hydro and Toronto Hydro announced the signing of a joint venture agreement to pursue the development of a natural gas-fired combined cycle power plant at the Lakeview Generating Station site. The first phase involves conducting a feasibility study of environmental impacts and economic benefits. Should this phase produce promising results, the next step would include detailed design and engineering leading to regulatory approval. Project scheduling calls for the gas-fired turbines to be fully operational in the latter half of 2002.

The consortium's commitment to pursue the development a gas-fired generator at the Lakeview Generating Station site has the potential to improve air quality. Natural gas is a cleaner burning fuel than coal. It releases no sulphur dioxide, no mercury, and none of the toxic particulates associated with coal. It also releases much less carbon dioxide and far fewer nitrogen oxides than does coal. It has not yet been determined by the consortium if the gas-fired generator will be developed as an addition to the coal-fired generator at the Lakeview Generating Station or as a replacement for it. If the gas-fired generator is added to the coal-fired generator at Lakeview, air emissions from the plant could increase in the future. If however, the gas-fired generator is built as a replacement for the coal-fired generator, air emissions could decrease in the future.

The issue of peak demand electricity requirements and increased Lakeview emissions again raises the issue of the facilities' impact on smog alert days. While it is true that the Lakeview Generating Station contributes to smog, its operation is often needed during smog episodes to meet the increase in power demand that results from the increased use of air conditioners in the City of Toronto during smog episodes. In the short term, it is recommended that Ontario Hydro be requested to investigate emergency measures which would provide for the reduction of power generation at Lakeview during smog alert days. In the long term, it may be fruitful to pursue a strategy which includes conversion of the Lakeview Generating Stations to natural gas, the development of renewable energies an co-generated electricity, and greater conservation of energy throughout the City.

(b) A copy of the recommendations adopted by City Council at its meeting held on May 13 and 14, 1998 was sent to Federal Minister of the Environment on May 21, 1998. To date, the City has not received a response to the May 21, 1998 communication. While the City has not met the Federal Minister, City of Toronto staff represent the City on a number of the fifteen national Issue Tables that were set up to examine the consequences of the Kyoto Protocol and the options open to Canada for implementing the Protocol. As part of the Kyoto Protocol, signed in December 1997, Canada has agreed to reduce its emissions of six greenhouse gases by six percent of 1990 levels by 2010. Issue Tables provide expert and detailed input to the analysis, identification and assessment of greenhouse gas reduction opportunities, and aid in the development of Canada's national implementation strategy. Currently, the City has representation on the Transportation and Municipalities Issue Tables. In addition, senior level Federal Government staff participate in the Environmental Task Force, and the work groups on sustainable energy and sustainable transportation.

(c) City Council endorsed the actions of the Board of Health. A copy of the recommendations adopted by City Council at its meeting held on May 13 and 14, 1998 were forwarded to the Federal Minister of the Environment on May 21, 1998.

(d) City Council endorsed the actions of the Board of Health. A copy of the recommendations adopted by City Council at its meeting held on May 13 and 14, 1998 were forwarded to the Provincial Minister of the Environment on May 21, 1998.

(e) City Council endorsed the actions of the Board of Health. A copy of the recommendations adopted by City Council at this meeting held on May 13 and 14, 1998 were forwarded to the Federal Minister of the Environment on May 21, 1998.

(f) The "ozone rulemaking process" refers to the United States Environmental Protection Agency's (EPA) intent to revise National Ambient Air Quality Standards for both particulate matter and ground level ozone. This regulatory action was announced in November 1996. In March 1997, the Province of Ontario filed submissions with the EPA in respect to proposed new air quality standards. The submission emphasized the concern that air quality in Ontario is directly affected by transboundary movement of pollutants emitted in the United States. It is estimated that 50 percent of the smog over the province originates from the United States.

The former City of Toronto Council at its meeting of October 6 and 7, 1997 adopted a report from the City Solicitor on the issue of transboundary air pollution (September 19,1997). The report determined that due to constitutional restrictions the City had a limited ability to take direct and/or independent legal action in respect of transboundary air pollution control. And that since both the Provincial and Federal governments monitor the transboundary movement of pollutants emitted in the United States, it was recommended that the City and the Province share their resources and work together to develop and implement strategies to control and abate transboundary air pollution. To date, there has been no cooperation between the City and the Province. On February 19, 1999 Premier Mike Harris announced that Ontario will intervene in support of a EPA ruling requiring 22 American states and the District of Columbia to reduce transboundary air pollution by May, 2003.

It is recommended that the Chief Administrative Officer explore with Federal and Provincial officials ways and means available to ensure that transboundary air pollution issues affecting the City are addressed.

Next Steps - 1999/2000 Work Plan:

(a) - (d) Council ensure that the issues highlighted in this report form part of the inter-governmental agenda for the City of Toronto in its involvement with the Greater Toronto Services Board, the Association of Municipalities of Ontario, the Federation of Canadian Municipalities, and other related forums.

(3) Conclusions:

The smog reduction recommendations adopted by City Council present an ambitious set of targets and initiatives. This report presents an update of activities already underway and outlines a Work Plan to deal with smog for 1999 - 2000.

A review on the status of adopted anti-smog recommendations demonstrates that the City has responded with many actions which are, and will, contribute to smog reduction in the City. The work that is currently underway represents the first steps in an on-going process to deal with the sources of smog both within the Corporation and the City. The implementation of existing anti-recommendations will also spawn opportunities to expand and build new initiatives.

There is now an opportunity for the City to demonstrate its leadership and commitment as a corporation in taking urgent action against smog by committing to the on-going process of smog reduction. The City is in a unique position to play a proactive and leading role, and to create opportunities for City employees to contribute directly through their own practices towards reducing smog. Toronto can be a role model for cities and corporations in Canada and the world.

(4) Recommendations:

It is recommended that:

(1) the appropriate departments, under the coordination of the Toronto Inter-Departmental Environment (TIE) Team, explore opportunities for funding from the National Climate Change Fund to assist the City in meeting its smog reduction targets;

(2) City Council request the Toronto Transit Commission to provide distribution and marketing services for the TTC Annual Metropass Discount Program to City of Toronto employees as an incentive to encourage reduction of employee automobile use;

(3) City Council request the Toronto Transit Commission and the Finance Department to make TTC Metropasses available to City employees using a monthly payroll deduction program;

(4) in support of this Employee Trip Reduction Program, City Council actively request that the Federal Minister of Finance make employer-provided transit passes an income tax-exempt benefit for employees;

(5) the City join the International Council for Local Environmental Initiatives (ICLEI) and the Federation of Canadian Municipalities Partners for Climate Protection Program (PCP) in order to help the City monitor its progress in meeting its adopted greenhouse gas targets;

(6) the Commissioner of Works and Emergency Services and the Chief Administrative Officer, as the co-chairs of the Toronto Inter-Departmental Environment (TIE) Team, report annually on the City's progress in achieving the milestones of the Partners for Climate Protection Program (PCP);

(7) City Council endorse, in principle, the installation of the proposed natural gas capacity at the Lakeview Generating Station with the intention of an eventual full conversion from coal to natural gas;

(8) City Council request Ontario Hydro to adopt emergency measures which would provide for the reduction of power generation at the Lakeview Generating Station during smog alert days;

(9) the Chief Administrative Officer explore with Federal and Provincial officials ways and means available to ensure that transboundary air pollution issues affecting the City are addressed; and

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

Appendix 1: 1999 - 2000 Work Plan Summary

The following outlines the 1999 - 2000 work plan for the recommendations which have yet to be acted upon. The work plan has been agreed to by all the identified departments.

What is to be achieved Timelines Responsibility
Development of a city-wide public education campaign on smog and smog alert response plan for the 2000 smog season. This process will also assess the feasibility of an Air Quality Advice Line. Report in early 2000 Toronto Inter-Departmental Environment (TIE) Team Smog Reduction Work Group
Investigate and report on the feasibility of road closures during smog alert days Report by June 1999 Works and Emergency Services
Work with the TTC and Go Transit in developing a contingency transportation plan during smog alert days. Report by June 1999 Works and Emergency Services
For the 1999 Smog season distribute educational material on smog to residents. Spring/Summer 1999 Healthy City Office and Public Health
Study the feasibility of reducing fleet emissions by 50 percent. Fall 1999- early 2000 Corporate Green Fleets Committee
Report on the feasibility and cost of implementing a Green Fleet Strategy for the Corporation. Fall 1999 - early 2000 Corporate Green Fleets Committee
Conduct a survey of employee travel for the Corporation Spring/Summer 1999 Healthy City Office and Urban Planning and Development Services
Develop next phases of an employee trip reduction program for the Corporation. Report in early 2000 Healthy City Office and Urban Planning and Development Services
Report on the feasibility of committing to purchasing 25 percent of electricity used-in house by the City of Toronto from green power sources. Summer of 1999 Environmental Task Force's Sustainable Energy Use Group
Report on a mechanism to monitor the environmental, social, and economic impacts of City initiatives. Fall 1999 Healthy City Office
Annual Anti-Smog Report Annual Healthy City Office
City Council ensure that the issues highlighted in this report form part of the intergovernmental agenda for the City of Toronto in its involvement with the Greater Services Board, Association of Municipalities of Ontario, the Federation of Canadian Municipalities, and other related forums. On-going

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Appendix 2: Blueprint For Action - Smog Reduction In Toronto

(A) Smog Alert Response:

That the City of Toronto initiate and implement a City-wide Smog Alert Response Plan, activated by the Medical Officer of Health, to come into effect when the Provincial Air Quality Index (AQI)* is predicted to reach a level of 50, starting in the spring of 1998.

This plan is to be implemented over a two year period in partnership with major employers, businesses, other levels of government, community groups, and individuals. Activities to be considered for suspension or curtailment include:

(i) all non-emergency vehicle use;

(ii) idling engines;

(iii) gasoline pump throughput;

(iv) road resurfacing and paving of any kind;

(v) incineration, including the main Sewage Treatment Plant and all hospital incinerators;

(vi) use of Lakeview generating station;

(vii) use of gas powered two-stroke equipment (mowing, trimming, leaf blowing etc.);

(viii) pesticide spraying;

(ix) air conditioning (turn off or reduce, both in buildings and in cars) as well as other appliances and equipment;

(xi) lights and computers;

(xii) requirement for formal office attire;

(xiii) use of oil-based paints, cleaners, and solvents, including solvent based personal care products such as hair spray, nail polish and remover; and

(xiv) barbequing.

Activities to support the smog response plan should include:

(a) a comprehensive Smog Alert Response communications procedure.

(b) special care for the especially vulnerable, including:

(i) mechanisms to care for the home bound and other elderly or disabled clients;

(ii) activities and information to reduce the effects of smog on children through Day Care Centres, Day Camps, and Summer Schools, and through school curricula;

(iii) policies and legislation which provide opportunities for people with respiratory problems to stay home or to be provided with oxygen, and for outside workers to reduce workloads on smog days; and

(iv) information for those who are physically active outdoors.

(c) A mandatory Smog Alert Response Plan by all employers, to include:

(i) information and education to employees;

(ii) financial and other assistance for employees, including provision of alternative transportation options, compensation for workers displaced on smog days, and care for the especially vulnerable; and

(iii) curtailment of motorized fleets, energy use, industrial emissions, and other smog-producing activities.

(B) Smog Prevention and Reduction Program:

That the City of Toronto initiate and implement, with partners, a comprehensive smog prevention program. The following is a list of policies and strategies that can be used to build such a program. The Expanded Anti-Smog Working Group will make recommendations on the implementation of the appropriate combination of actions required to achieve the targets.

(i) Transportation and Land Use:

(a) Provide Enhanced Human Powered Transportation Options: Significantly increase provision of and investment in pedestrian, cycling, blading, and other human powered* transport options and infrastructure, including sidewalks, on-street and off-road bike lanes, destination point facilities such as bike parking, showers, and repair stations, as well as programs to increase safety, and programs that promote and integrate walking and bicycle transportation options*. (City report "Bicycle City 2001"*)

(b) Provide Enhanced Transit Options: Significantly expand provision of and investment in transit, rail, mixed mode*, and other public transit options and infrastructure.

(c) Land Use and Other Policy Incentives: Support and adopt pedestrian, bicycle, and transit supportive land use policies and practices aimed at decreasing the amount of land dedicated to automobile transportation from the current 40 percent+, and at promoting denser, mixed use* communities, including mixed-use zoning*, traffic calming initiatives, car-free zones. Minimize car use through amended parking policies (availability, pricing), speed reduction policies, and traffic demand management requirements.

(d) Parking: Adopt parking policies and practices which stimulate car use reduction: eliminate requirements for paved parking spaces at residences or for added second units; reduce the number of parking spaces required for low-rise apartment or rooming houses; increase permit fees for a second car in each family; require one tree planted for every parking space; restrict front yard parking; encourage paid employee parking or reduction of employee parking; reduce the amount of land given over to parking.

(e) Provide Car Pooling and Car Sharing Options: Support and invest in car pooling and car sharing policies and initiatives, including High Occupancy Vehicle (HOV) lanes and computerized trip reduction scheduling systems, where transit is not available.

(f) Provide Alternative Work Options: Support and invest in alternative work options such as telecommuting, video conferencing, flextime, four day work weeks, and flexible dress code.

(g) Provide Alternative Movement of Goods and Services: Support and invest in the development of alternative distribution and freight options, including human powered delivery and distribution mechanisms such as work bikes, bike trailers and couriers; night deliveries and other route optimization mechanisms; and electronic means of moving information and services.

(h) Provide Green Tourism* Options: Provide and invest in transit and non-motorized transportation links and information for tourists.

(i) Green Fleets and Employee Trip Reduction: Support and invest in the greening of all Toronto fleets using City of Toronto practices and recent "Catching Your Breath" Corporate policies as a starting point. All employers would submit a corporate green fleets plan, in partnership with the Green Fleets Partnership, as well as an employee trip reduction plan.

(j) Emissions Controls: Provide legislation and/or increased enforcement of: mandatory vehicle emissions testing; regulations that prohibit tampering with emission control devices; diesel truck maintenance; use of reformulated "summer fuels" during the non-winter months for all gasoline powered vehicles; research on and regulations regarding emissions from public air exhibitions and automobile races; a mandatory vapour recovery program; and where effective, research, development, and application of alternative fuels and alternative vehicles*.

(k) Financial Incentives: Provide financial and tax incentives to decrease car use and adopt other modes, including: making transit and bike repair tax deductible; providing tax incentives for not owning a car; providing property tax incentives for locating in denser, mixed use locations; adopting purchasing and leasing policies that encourage purchase of cleaner fuels, vehicles, and systems; extension of the eight-cylinder vehicle tax* to sport utility vehicles; providing loans and assistance programs for small businesses and individuals to initiate modal shift; providing a "cash for clunkers" program; providing employee incentives and benefits (cash, lieu time, transit pass subsidies, guaranteed rides home) for not using a car; reviewing tax policies related to benefits and depreciation rates of company cars; and providing savings and discounts to "green tourists" who choose other modes.

In addition, channel revenues from the following into smog reducing activities and programs: permit parking; parking meter revenues; increased parking fees; gasoline surcharges; automobile registration fees; ownership levies; polluter fines; voluntary contributions of a percentage of corporate sales or profits; highway and other tolls and road pricing; and mandatory vehicle emissions testing.

(ii) Energy Use Reduction

(a) Invest in, develop, and apply energy management systems for industrial infrastructure. Support cleaner energy systems and conservation initiatives such as district heating and cooling (including deep lake water cooling*), cogeneration, renewable energy sources, and more efficient industrial processes. Continue to invest in the Better Buildings Partnership, a program for retrofits* of public sector, private sector, and non-profit buildings, currently managed by the Energy Efficiency Office. Expand the partnership to include retrofitting of residential buildings.

(b) Reduce residential energy and hot water consumption in the following ways:

(i) provide and promote home energy assessments by investing in and expanding on current Greensaver* and local government initiatives;

(ii) provide a comprehensive home energy practices assistance program;

(iii) provide the ability to finance residential energy retrofits* paid back through utility bills; and

(iv) support, promote, and invest in research, development, and application of new and innovative energy options such as residential solar energy projects and support net billing structures and other mechanisms to facilitate financing.

(c) Adopt and/or support legislation and incentives that encourage energy savings and reduce the "Urban Heat Island Effect*" including:

(i) increase energy efficiency standards currently required in the Energy Efficiency and Conservation Plan for new construction to offset deficiencies in the Ontario Building Code;

(ii) assess and restrict demolition of buildings and especially surrounding trees in keeping with energy conservation goals;

(iii) advocate energy efficient buildings through a labelling program, which rates buildings according to level of energy efficiency/conservation for use at resale*;

(iv) increase the balance of light toned buildings and white rooftops with darker ones through the Building Code, as well as lighter pavements, strategic tree planting and replacement requirements, and prohibition of tree removal, to reduce the "Urban Heat Island Effect*" during the summer, and to conserve heat during the winter;

(v) legislate and provide incentives for developers to create compact mixed use communities to reduce energy use;

(vi) legislate "turn off" or "turn down" in office towers at night (lights, computers, and air conditioners) and reduction during the day;

(vii) provide incentives/legislation encouraging a shift from gas or electric to push mowers; and

(viii) phase in a ban of two-stroke motors* in conjunction with financial incentives such as rebates, and schedule to accelerate replacement of old equipment with low emission equipment.

(d) Shift Toronto to cleaner energy demand and use. Advocate that the percentage of Toronto's energy drawn from renewable sources be increased to 25 percent, and that generation from nuclear and fossil fuels be reduced by 50 percent to be carried out in the following ways:

(i) reduction of demand through conservation;

(ii) purchase and use of alternative sources; and

(iii) reduction and phase down of current fossil fuel sources, including request that Lakeview Generating Station not increase its annual supply to Toronto over 1996 figures, and that in tandem with increased conservation commitments and purchase of alternative sources, Lakeview be considered for phase-down over the next decade.

(c) Greening:

(a) Phase out cosmetic* use of pesticides over a two year period. In the meantime, restrict spraying to specific hours, avoiding times when children are outside - before and after school hours, weekends, public holidays, July, and August. Research and invest in environmentally sensitive methods of control.

(b) Reduce the "Urban Heat Island Effect*" through investment in initiatives such as urban agriculture, rooftop gardening, and strategic tree planting such as shade trees in car parking lots, on streets, and surrounding buildings. Initiate new smog-specific greening on road right of ways, cycling and pedestrian corridors, parks and other public land, private property (homes and businesses) and rail corridors.

(c) Increase the percentage of land given to green space, by strengthening and investing in existing greening programs and activities, including river and marsh restoration, parking lots into parks initiatives and green tourism initiatives*.

(d) Legislate and facilitate home, commercial and community greening initiatives through by-laws, policies and targets to increase green space, in tandem with financial incentives and assistance for greening activities, for example mandatory tree replacement policies, relaxing parking space requirements in favour of greening activities, and provision of rebates, discounts, and tax breaks related to greening initiatives.

(iv) Industrial/Commercial Source Reduction

(a) Legislate and negotiate stricter pollution controls and prohibitions, locally and internationally, including biomedical waste incineration, sewage sludge incineration, use of oil based paints and other toxic solvents by individuals, businesses (in particular auto body shops) and other institutions, production and disposal of plastics, and emission of Perc* by dry cleaners.

(b) Require and facilitate replacement of polluting industrial systems with cleaner technologies and systems, for example cogeneration systems, alternative dry cleaning systems, wild reed beds* living machine technology*, and low VOCs* solvents and paints. Include technical and financial assistance programs (in particular for small businesses) for decreasing toxic chemical use and discharges. Invest in research and development of cleaner systems.

(c) Legislate and facilitate public awareness of industrial and commercial pollution and solutions, including: making emission levels and monitoring results for Ontario industrial stationary sources available to the public; publishing names and locations of all companies emitting hazardous substances, along with complete lists of the contaminants emitted; publishing names of companies engaged in greening, upgrading, or replacement of polluting systems; initiating industrial partnerships to facilitate and finance new options; providing for increased public consultation when Certificates of Approval* are being considered for new industrial sources.

(v) Research

Monitor, and where necessary initiate and / or participate in research on:

(i) the health impacts of particulates, with the aim of developing a target for particulates reduction;

(ii) the social, economic, and health impacts of smog;

(iii) the relative impact of smog levels in different parts of Toronto;

(iv) the relative impact of policies, programs, and other initiatives on smog in Toronto;

(v) financial incentives required to promote positive behaviour;

(vi) less polluting freight and distribution systems for commerce in the Greater Toronto Area;

(vii) new and improved technologies to assist with smog reduction;

(viii) travel patterns in the GTA;

(ix) methodologies to improve the prediction of smog;

(x) cleaner fuels, vehicles, and systems; and

(xi) cross-border production and reduction of smog sources.

(C) Public Education and Communication

That the City of Toronto initiate and implement, in partnership, a two-part comprehensive education and awareness program as follows:

(a) Part One: Smog Alert Notification Procedure, including:

(i) smog alert notification 12-18 hours prior to a predicted smog episode, directed, in all key languages, to the public, large employers, point source emitters*, transit providers, schools and boards of education, hospitals, media, and other relevant groups. This notification should also include a list of activities to be suspended or curtailed; and

(ii) an ongoing smog outreach program in all key languages providing information on recognizing the potential health effects of smog, activities to avoid for health reasons, and on actions that reduce smog. Channels should include: a smog alert hotline and telephone outreach program; pre-season household door-to-door bulletins; mainstream and community media and Public Service Announcements; videos; community outreach and public events; and corporate and community partners' channels. The program should be launched at the beginning of the smog season to give advance warning of what to expect and how to prepare.

(b) Part Two: Ongoing Education and Awareness Program, including education which would occur regularly and in all key languages, with particular emphasis during the smog season. Information should encourage ongoing action to help prevent and reduce smog, including:

(i) what smog is, its costs and harmful effects and how to prepare for smog days; everyday actions to reduce smog; exemplary practices from Toronto and elsewhere; targeted communications to polluters and businesses being requested or required to curtail certain activities; what the City and other partners are doing to reduce smog; where to get information and resources on smog and anti-smog actions.

Communication Channels Include: community and mainstream media, and public service announcements; distribution of public notices and materials (door to door, pay and cheque stubs etc); electronic communication mechanisms (Internet); schools and other academic institutions, workplaces, places of worship, community centres, environmental groups and resource centres; special events; educational curriculum at all levels and incorporation into existing professional and other training channels; targeted (and/or mandatory) communication, education, and training for polluters.

(D) Commitment:

That the City of Toronto lead in the commitment to anti-smog action in partnership with major employers, businesses, other levels of government, community groups and individuals, as well as with relevant international agencies in the following ways:

(a) Commitment to Developing and Implementing Anti-Smog Plans: Accelerate the development and implementation of municipal, Provincial, Federal, corporate, and community anti-smog action plans.

(b) Commitment of Financial Resources: Commit financial resources to the implementation of actions recommended in these plans, to be derived from the following sources:

(i) creation of stable, ongoing clean air funds as a percentage of public (government) energy, transportation environment budgets; as a percentage of corporate sales; and as a commitment to anti-smog efforts by major funding agencies;

(ii) channeling of revenues generated from savings derived from anti-smog actions into further anti-smog actions, for example, dedicating energy savings to employee benefits such as subsidizing transit passes or providing workplace bicycle and walking facilities;

(iii) channelling revenues derived from redirecting subsidies to the automobile into anti-smog actions (leveling the playing field);

(iv) channelling of revenues generated from polluting activities into anti-smog actions, for example channelling parking revenues or polluter fines into providing transit options and green space; or channelling personal savings from shifting modes into a home energy retrofit, or into buying a new bicycle; and

(v) contribution of services and goods in-kind through partnership and co-operative anti-smog efforts.

(c) Commitment of Human Resources: Commit human resources to the development and co-ordination of anti-smog efforts, including paid staff, volunteers, and citizen committees. Support these commitments with adequate financial, administrative, and information resources.

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The Strategic Policies and Priorities Committee also submits the following report (June 1, 1999) from Councillor Jack Layton, Don River, Ward 25:

That the following recommendations be adopted in addition to the Chief Administrative Officer's report:

(1) that the City immediately institute enforcement of the Anti-Idling Bylaw using a Part 3 Summons technique and that this enforcement be intensified during Smog Days;

(2) that the City Solicitor report directly to Council on June 9, 1999, on the status of the application for the "set fine" for the Anti Idling Bylaw which was approved unanimously by City Council early last year;

(3) that staff initiate car pooling at all of the former City Hall locations for Summer 1999, in consultation with the Toronto Environmental Alliance which has experience in helping many large institutions develop and instigate car pooling plans;

(4) that staff be directed to immediately implement an employee parking policy for City Hall and all other work locations so that free commuting spaces become pay for parking, unless free parking is required because of a disability, contractural obligations, or an occupational health and safety concern; and that the Parking Authority of Toronto be responsible for the administration of the City Hall commuter spaces and a system be developed for other sites;

(5) that existing City of Toronto materials that have been developed by Toronto Public Health on how children, the elderly and people with lung and heart conditions can deal with smog days be distributed to the public, possibly via doctors offices in conjunction with the Ontario Medical Association; and that the Chief Administrative Officer and Budget Committee report directly to Council on the funds required to and the source of the funds;

Background:

Recommendation No. (1):

In September 1998, City Council passed an Anti-Idling Bylaw. Recommendation No. 1 calls on the enforcement of this bylaw to be stepped up during Smog Days.

Recommendation No. (2):

This calls on the City Solicitor to report on what the status of the application for a "set fine" usually made to the Attorney General of Ontario to allow bylaw infractions to be paid in a manner similar to parking fines.

Recommendation No. (3):

Over 10 large institutions such as IBM, Sprint Canada, Toronto Hydro and Ontario have instigated employee car pool programs, with the help of the TEA. TEA is willing to help the City establish employee car pool programs this summer at former city halls.

Recommendation No. (4):

As part of the Smog Reduction Program passed by City Council on May 13 and 14, Recommendation No. (17) called for the Chief Administrative Officer to write a status report and an implementation plan to City Council by June 1998 on the following:

"A comprehensive auto trip reduction program be developed and implemented with the following first steps:

(a) effective December 31, 1997, revise the employee parking policy for City Hall and all other work locations so that free commuting spaces become pay for parking, unless free parking is required because of a disability, contractual obligations, or an occupational health and safety concern; and that the Parking Authority of Toronto be responsible for the administration of the City Hall commuter spaces and a system be developed for other sites;

Recommendation No. (4) calls on City Staff to implement a policy already passed by City Council.

Recommendation No. (5):

Toronto Public Health has produced excellent fact sheets on what children, the elderly and people with lung and heart conditions can do on smog alert days. In the right hands, this information can save lives this summer. To ensure it gets to the right hands, the City can work with the Ontario Medical Association and distribute the fact sheets to as many doctors offices in the City of Toronto as possible.

The Strategic Policies and Priorities Committee also submits the following report (May 31, 1999) from Councillor Jack Layton, Don River, Ward 25:

On May 28, 1999, the Advisory Committee on Homeless and Socially Isolated Persons adopted the following motion and asks that the Strategic Policies and Priorities Committee consider it as part of the discussions on Item No. 3, "Smog Prevention and Reduction: Status Report and Work Plan" on the June 1, 1999 agenda.

It is recommended that Toronto Public Health develop and implement a comprehensive, season-long hot weather and air quality strategy. Further, that the target population include those at risk such as seniors, homeless, underhoused, inner city poor, persons with chronic illness and persons using psychotropic medications that increase sensitivity to sunburn. The strategy should include the following:

(a) access to basic resources such as water, sun screen and hats;

(b) access to public facilities where individuals can seek cool shelter;

(c) a "no movement" policy for public parks and shaded areas;

(d) information on location of cool shelters and other available resources through existing networks; and

(e) fact sheets that would include information on health conditions that can be exacerbated by heat.

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The following persons appeared before the Strategic Policies and Priorities Committee in connection with the foregoing matter:

- Mr. John Wellner, Toronto Environmental Alliance, and filed a series of articles appearing in the Toronto Star in regard thereto; and

- Councillor Jack Layton, Don River.

(City Council on June 9, 10 and 11, 1999, had before it, during consideration of the foregoing Clause, the following report (June 7, 1999) from the Chief Administrative Officer:

Purpose:

To report on the feasibility of additional anti-smog recommendations, embodied in the communication (June 1, 1999), put forward by Councillor Jack Layton at the June 1, 1999 Strategic Policy and Priorities Committee.

Funding Sources, Financial Implications and Impact Statement:

With regards to item (5), funds required to produce and disseminate public education materials for the summer of 1999 will be absorbed within the Healthy City Office and Toronto Public Health budgets. Implications for future years will be reported through the 2000 budget process.

Recommendations:

It is recommended that:

(1) That the Commissioner of Corporate Services ensure that carpooling is coordinated through the City's existing intranet site on an on-going basis; and

(2) That the Chief Administrative Officer and the Commissioner of Corporate Services develop and implement the promotional and employee awareness initiative set out in this report.

Council Reference:

At its June 1st, 1999 meeting, the Strategic Policies and Priorities Committee (SPPC) adopted the report, 'Smog Prevention and Reduction: Status Report and Work Plan' (May 18, 1999) from the Chief Administrative Officer. At that time, Councillor Jack Layton put forward five additional recommendations to deal with smog this summer. These included:

(1) that the City immediately institute enforcement of the Anti-Idling Bylaw using a Part 3 Summons technique and that this enforcement be intensified during Smog Days.

(2) that the City Solicitor report directly to Council of June 9, 1999:

(21) on the status of the application for the "set fine" for the Anti Idling By-Law which was approved unanimously by City Council early last year; and

(22) on the clause from the Municipal Act p.65, Part VII General provisions applicable to all Municipalities Section 102.

(3) that staff initiate car pooling at all of the former City Hall locations for Summer 1999, in consultation with the Toronto Environmental Alliance which has experience in helping many large institutions develop and instigate car pooling plans.

(4) that staff be directed to immediately implement an employee parking policy for City Hall and all other work locations so that free commuting spaces become pay for parking, unless free parking is required because of a disability, contractual obligations, or an occupational health and safety concerns; and that the Parking Authority of Toronto be responsible for the administration of the City Hall commuter spaces and a system be developed for other sites.

(5) that existing City of Toronto materials that have been developed by Toronto Public Health on how children, the elderly and people with lung and health conditions can deal with smog days be distributed to the public, possibly via doctors offices in conjunction with the Ontario Medical Association; and that the CAO and Budget Committee report directly to Council on the funds required to and the source of the funds.

The SPPC referred recommendations Nos. (1), (3), (4) and (5) to the Chief Administrative Officer to report thereon to City Council at its June 9, 1999 meeting. Recommendations Nos. (1) and (2) will be reported on by the City Solicitor. This reports report responds to recommendations (3), (4) and (5) which pertain to car pooling at the City, employee parking policy for City Hall and other work locations, and distribution of smog material to the public, respectively.

Discussion:

Recommendation (3): Carpooling at the former City Hall locations

At this time it is feasible to initiate car pooling at the former City Hall locations for the Summer of 1999. Carpooling is an effective and inexpensive alternative to a number of transportation problems. According to the Toronto Environmental Alliance (TEA) there are many reasons why it makes sense to set up a carpool program within workplaces. The list below identifies some of the many benefits for the City and its employees.

Benefits for the City

- good corporate citizenship

- cleaner air, less smog, and reduced greenhouse gas emissions

- improved employee relations and better work morale

- reduced tardiness and absenteeism

- reduce employee tension/stress levels

- solution to parking issues and reduced cost associated with parking facilities

Benefits for Employees

- save money on gas, parking, repairs and other car related costs

- cleaner air, less smog, and reduced greenhouse gas emissions

- carpooling provides driving choices; those who prefer to drive may drive, and those who wish to avoid driving can choose to be passengers

- opportunities to socialize with co-workers, share ideas, or read

- if an individual has car trouble, they are not stranded or seeking help alone.

During the Toronto Transit Commission (TTC) strike earlier this year, carpooling was promoted and coordinated for employees through the City of Toronto's intranet site. Through this network, City employees are able offer or request a ride aided by an on-line ride-board map of the City. This intranet could be used on an on-going basis to co-ordinate carpooling for employees. This carpooling matching system can form the basis of the car pooling program for former City Hall locations and other work locations.

Based on the experience of the Toronto Environmental Alliance (TEA) with their corporate carpooling program 'Ride Together', for an employee carpooling program to be effective, the City must actively communicate and promote carpooling to employees and publicize its exiting carpooling intranet network. For the summer of 1999, it is recommended that the following activities be undertaken and supported by the City:

- That the Commissioner of Corporate Services ensure that carpooling is coordinated through the City's existing intranet site on an on-going basis; and

- That the Chief Administrative Officer and the Commissioner of Corporate Services:

(a) develop a promotional brochure for City employees on carpooling. That this brochure be adapted from an existing Toronto Environmental Alliance carpooling information brochure;

(b) ensure that the brochure is circulated to City employees; and

(c) ensure that an article on benefits of carpooling be written and submitted to the City employee newsletter.

Recommendation (4): Employee Parking Policy

An overall parking policy report is currently being circulated for consultation by the Departments of the City (including a review by the Legal and Human Resources Divisions). The timeframe for review of this policy is June and July with a recommended policy option reaching Council in September 1999 after proceeding through the Office Consolidation Committee and Administration Committee.

City staff recommend that the current policy options paper receive staff review according to it's current schedule to ensure full understanding of the potential Human Resources and Legal issues to be resolved.

Recommendation (5): Public education on smog

The 'Smog Prevention and Reduction: Status Report and Work Plan' identified the need to disseminate existing public education materials on smog to City of Toronto residents, as well as information on the steps that can be taken to reduce smog. The need for a short-term and a long-term public education strategy has been identified. In the short term, during the Spring/Summer of 1999, there are a number of avenues through which smog related information to the public will be distributed including:

- The Healthy City Office and Toronto Public Health are distributing existing brochures and fact sheets through local environmental and community events. To date, smog information has been distributed through Bike Week events and City sponsored Councillor Environment Days. Throughout the rest of the spring/summer it is planned that information will be distributed through Pollution's Probe Clean Air Commute, and other community events.

- A smog display, based on the information in Public Health's smog brochure, has been developed by the Healthy City Office and Toronto Public Health. The display is a useful public education tool that will be circulated to public events and other forums by staff and volunteers.

- Toronto Public Health has provided smog brochures to a number of walk-in clinics in the Greater Toronto Areas. Broader distribution through walk-in clinics is currently being explored.

- Smog information will be outlined in article for community newspapers and has been included in the Environmental Handbook Air Quality section which was distributed through Toronto Life magazine. Both items are being drafted by Toronto Public Health.

- Idling blitzes to be implemented throughout the summer to crack down on motorist and tourist buses. Smog Alert brochures to be distributed along with idling information.

Avenues of distribution that are currently being explored include:

- Toronto Public Health has approached the Ontario Medical Association regarding the possibility of using exiting system(s) to distribute information to doctor's offices. In addition, it is exploring brochure distribution through drug stores throughout the City.

- Toronto Public Health is exploring the possibility of involving the Toronto Region Conservation Authority (TRCA), Toronto Parks and Recreation, and Toronto Public Libraries in a broader awareness strategy, for example, doing joint events.

In the long term, recognizing the need for a comprehensive public education campaign on smog the Smog Reduction Work Group, a sub-committee of the Toronto Inter-Departmental Environment (TIE) Team, is beginning work on developing an appropriate public education campaign on smog. The Work Group will report to TIE and City Council in early 2000.

Conclusion:

Most of the recommendations that the CAO was asked to report thereon to City Council are feasible, however, the feasibility of an employee parking policy will be considered within an appropriate time frame following due consultation with the Legal and Human Resources Divisions.

Contact:

Lisa Salsberg, Healthy City Office

Tel.: 392-1086

Fax: 392-0089

email: lsalsber@toronto.ca)

(City Council also had before it, during consideration of the foregoing Clause, the following report (June 7, 1999) from the City Solicitor:

Purpose:

This report responds to the request of the Strategic Policies and Priorities Committee for information on:

(a) the City immediately instituting enforcement of the Anti-idling By-law (or more accurately and hereafter referred to as the "Idling Control By-law") using a Part III Summons technique and the intensification of enforcement during Smog Days;

(b) the status of the application for the "set fine" for the Idling Control By-law; and

(c) the applicability of the provisions of Section 102 of the Municipal Act to passing the by-law.

Funding Sources, Financial Implications and Impact Statement:

The method and extent of enforcement of the Idling Control By-law will impact on the budget of the enforcing division and department.

Recommendations:

It is recommended that this report be received for information.

Council Reference/Background/History:

At the Strategic Policies and Priorities Committee meeting on Tuesday, June 1, 1999, the Committee referred the following recommendation to the City Solicitor for report thereon to the meeting of City Council scheduled to be held on June 9, 1999:

"(1) that the City immediately institute enforcement of the Anti-Idling Bylaw using a Part 3 Summons technique and that this enforcement be intensified during Smog Days."

Further, the Committee directed the City Solicitor to report directly to Council on (i) the status of the application for the "set fine" for the Idling Control By-law, and (ii) the applicability of the provisions of Section 102 of the Municipal Act.

Comments and/or Discussion and/or Justification:

A. Idling Control By-law

By-law 673-1998, being a By-law "To Prohibit Excessive Idling of Vehicles and Boats", was enacted by Council at its meeting on October 2, 1998. By-law 673-1998 was enacted further to the recommendation of the Urban Environment and Development Committee (Clause No. 2 of Report No. 11). That recommendation was in turn based on the recommendation of The Toronto Pedestrian Committee that the Idling Control By-law of the former City of Toronto (Municipal Code Chapter 212) be extended to the entire new City of Toronto.

By-law 673-1998 is essentially identical in its provisions to Chapter 212, Idling of Vehicles and Boats, of the Municipal Code of the former City of Toronto ("Chapter 212").

Chapter 212 has not been repealed. This is common in situations where a new by-law is coming into force for which an application for set fines must be made. Given the common delay in obtaining the required set fine order, the old by-law is not commonly repealed until the order is obtained.

Pursuant to the City of Toronto Act, 1997, every by-law of an old council that is in force immediately before January 1, 1998 shall be deemed to be a by-law of the council of the new City and remains in force in respect of the part of the urban area to which it applied immediately before January 1, 1998, until the council repeals it or amends it to provide otherwise.

Given that Chapter 212 was not repealed, Chapter 212 and the set fines applicable to that Chapter are currently in force and thus may be enforced in the geographical region of the former City of Toronto.

B. Status of the Set Fine Application

The Application for Set Fines for City of Toronto By-Law No. 673-1998, as amended, was submitted to the Ministry of the Attorney General for processing on June 3, 1999. The Legal Department has requested that the application be processed as soon as possible on an expedited basis.

The solicitor responsible for processing of set fine applications with the Ministry of Attorney General, Crown Law Office (Criminal), has advised that set fine applications are generally processed according to the date of receipt and that they require approximately six (6) months to process through their office. However, this solicitor has advised that, if the application is processed on an expedited basis, it may be processed in their office in approximately one month's time.

Subsequent to the Ministry of the Attorney General's Office processing the application, the matter must then be processed by the Regional Senior Provincial Court Judge for the set fine order to be issued.

C. Enforcement of the Anti-Idling By-law using a Part III Summons technique and intensification of enforcement during Smog Days

Options

There are a number of options available to the City for enforcement of the Idling Control By-law, including the enforcement of the Municipal Code, Chapter 212, the provisions of which were in effect extended by the new by-law to the limits of the new City. The options available include:

(i) enforcing only Chapter 212 within the limits of the former City of Toronto, thereby utilizing the set fines under the by-law;

(ii) enforcing Chapter 212 within the limits of the former City of Toronto in combination with the enforcement methods referred to in (iii) or (iv) below for the rest of the City;

(iii) enforcing the Idling Control by-law (By-Law 673-1998) using a certificate of offence and summons under Part I of the Provincial Offences Act; and

(iv) enforcing the Idling Control by-law using Part III of the Provincial Offences Act commenced by laying an information.

A description of the procedures for enforcement of set fine by-laws and those utilizing the methods set out in (iii) or (iv) under the Provincial Offences Act is set out in Appendix A to this report. All of the various methods of enforcement may be utilized. In summary, however, the option of enforcing only Chapter 212 (with its set fines) within the limits of the former City of Toronto is the most effective option of enforcement. If Council wishes that the Idling By-law be enforced in the entire area of the new City, the most effective option of enforcement would be to enforce Chapter 212 (with its set fines) in the former Toronto limits in combination with enforcement of By-Law No. 673-1998 by way of certificate of offence and summons under Part I of the Provincial Offences Act in the areas of the new City other than in the geographical region of the former City of Toronto.

D. Impact on Staffing

Staff of the Commissioner of Urban Planning and Development Services have provided the following comments.

"In considering enforcement of this by law, and since most idling would take place within the road allowance, the most effective coverage of the city would be provided through staff who normally patrol road allowances. This would include staff enforcing vending matters and taxi issues (Municipal Licensing and Standards), road patrols (Works and Emergency Services), Parking Enforcement Officers (Police Services), and Police Officers/Cadets.

This enforcement effort would obviously draw time from other functions. There may be value in an initial intensive programme over a period of one or two years with a number of contract staff hired to focus on specific areas of concern. For example there could be downtown foot patrols, as well as staff circulating through the City to delivery areas of major malls, hotels etc. During smog alert days, all staff involved in any form of patrol or enforcement within the road allowance would be directed to attend to idling as a priority issue.

In conjunction with the patrol programme there would be value in a communication effort to major department stores, moving and delivery companies etc. to advise them that the City will be actively enforcing the Idling By-law, and requesting their co-operation.

With attention drawn to the existence of, and penalties associated with, the Idling By-law by the initial intensive programme, it is probable that existing staffing levels for all Departments involved could subsequently maintain a reasonable level of enforcement. However it is likely that further programmes with contract staff may be periodically required to refocus public attention.

Given that Parking Control Officers are those most directly involved in areas where there are likely to be idling vehicles, I would respectfully suggest that their agency be that which should be assigned the primary and continuing responsibility for enforcement for this By-law.

It should be noted that any challenges to the tickets could result in staff being required to attend court, and this could have a more significant impact in terms of a draw on staff time than the activity of actually writing tickets."

A Superintendent with the Toronto Police Service, who is presently Unit Commander with Parking Enforcement, has advised that parking enforcement officers (previously known as parking control officers) only enforce by-laws relating to stopping, standing, or parking a vehicle where prohibited. He has advised that enforcement of the Idling Control By-law is outside the mandate of the Parking Enforcement Unit.

E. The Applicability of Section 102 of the Municipal Act to passing an Anti-Idling

By-Law

Section 102 of the Municipal Act provides as follows:

"Every council may pass such by-laws and make such regulations for the health, safety, morality and welfare of the inhabitants of the municipality in matters not specifically provided for by this Act and for governing the conduct of its members as may be deemed expedient and are not contrary to law."

Municipal Code, Chapter 212, was passed under the authority of section 102 of the Municipal Act, as was By-law 673-1998.

Conclusions:

(a) Given that Chapter 212 was not repealed, Chapter 212 and the set fines applicable to that Chapter are currently in force and thus may be enforced in the geographical region of the former City of Toronto.

(b) The Application for Set Fines for City of Toronto By-Law No. 673-1998, as amended, was submitted to the Ministry of the Attorney General for processing on June 3, 1999. The Legal Department has requested that the application be processed as soon as possible on an expedited basis. If the application is processed on an expedited basis, we are informed it may be processed in their office in approximately one month's time.

(c) The option of enforcing only Chapter 212 (with its set fines) within the limits of the former City of Toronto is the most effective option of enforcement. If Council wishes that the Idling By-law be enforced in the entire area of the new City, the most effective option of enforcement would be to enforce Chapter 212 (with its set fines) in the former Toronto limits in combination with enforcement of By-Law No. 673-1998 by way of certificate of offence and summons under Part I of the Provincial Offences Act in the areas of the new City other than in the geographical region of the former City of Toronto.

Contact Name:

Belinda Brenner - 392-8357

James Anderson,Director, Municipal Section - 392-8059

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APPENDIX A

(A) Part I of the Provincial Offences Act

Part I of the Provincial Offences Act provides that a proceeding in respect of an offence may be commenced by filing a certificate of offence alleging the offence in the office of the court. Pursuant to Part I, a Provincial offences officer who believes that one or more persons have committed an offence may issue, by completing and signing, a certificate of offence certifying that the offence has been committed and,

(a) an offence notice indicating the set fine for the offence; or

(b) a summons.

Accordingly, Part I of the Provincial Offences Act provides two alternative ways of proceeding. One being by way of certificate of offence and offence notice; the other being by way of certificate of offence and a summons.

The first option is only available where there are set fines for the offence, such as for Chapter 212. Accordingly, where there are no set fines, as in the case of By-law 673-1998, the only available method of proceeding under Part I (in addition to the alternative of proceeding under Part III) is by way of certificate of offence and summons.

Each of the offence notice or the summons must be personally served upon the person charged within thirty (30) days after the alleged offence occurred. The certificate of offence shall then be filed in the court office as soon as is practicable after service of the offence notice or summons.

Certificate of Offence and Offence Notice

Pursuant to the Provincial Offences Act, where a defendant is served with an offence notice, the defendant may give notice of intention to appear in court for the purpose of entering a plea and having a trial.

Where an offence notice is served on a defendant who does not wish to dispute the charge but wants to make submissions as to penalty, including the extension of time for payment, the defendant may appear before a justice at a specified time and place and plead guilty to the offence and make submissions as to penalty, and the justice may enter a conviction and impose the set fine or such lesser fine as is permitted by law.

Where an offence notice is served on a defendant who does not wish to dispute the charge, the defendant may sign the plea of guilty on the offence notice and deliver the offence notice and the amount of the set fine to the office of the court specified in the notice. Acceptance by the court office of such a payment constitutes a plea of guilty whether or not the plea is signed and the endorsement of payment on the certificate of offence constitutes the conviction and imposition of a fine in the amount of the set fine for the offence.

Where at least 15 days have passed after the defendant was served with the offence notice and the offence notice has not been delivered back to the court in accordance with the provisions of the Provincial Offences Act outlining that the defendant does not wish to dispute the charge, or outlining that the defendant resides outside the county or district in which the office of the court specified in the notice is situate and that this defendant wishes to dispute the charge but does not want to attend or be represented at trial, and a plea of guilty with representations has not been accepted, the defendant will be deemed to not wish to dispute the charge and a justice shall examine the certificate of offence and,

(a) where the certificate of offence is complete and regular on its face, the justice shall enter a conviction in the defendant's absence and without a hearing and impose the set fine for the offence; or

(b) where the certificate of offence is not complete and regular on its face, the justice shall quash the proceeding.

Certificate of Offence and Summons

Where a certificate of offence and a summons are issued, the matter must proceed to trial.

(B) Part III of the Provincial Offences Act

Pursuant to Part III of the Provincial Offences Act, a proceeding in respect of an offence may be commenced by laying an information. Where a summons or offence notice has been served under Part I, however, no proceeding can be commenced by way of laying an information in respect of the same offence, except with the consent of the Attorney General or his or her agent.

Where a Provincial offences officer believes, on reasonable and probable grounds, that an offence has been committed by a person whom the officer finds at or near the place where the offence was committed, he or she may, before an information is laid, serve the person with a summons in the prescribed form.

Any person who, on reasonable and probable grounds, believes that one or more persons have committed an offence, may lay an information in the prescribed form and under oath before a justice alleging the offence and the justice shall receive the information.

The procedure for laying an information is as follows. A justice who receives an information laid under Part III shall consider the information and, where the justice considers it desirable to do so, hear and consider in the absence of the defendant the allegations of the informant and the evidence of witnesses and,

(a) where he or she considers that a case for so doing is made out,

(i) confirm the summons which was served under Part III prior to an information being laid, if any,

(ii) issue a summons in the prescribed form, or

(iii) where the arrest is authorized by statute and where the allegations of the informant or the evidence satisfy the justice on reasonable and probable grounds that it is necessary in the public interest to do so, issue a warrant for the arrest of the defendant; or

(b) where he or she considers that a case for issuing process is not made out,

(i) so endorse the information, and

(ii) where a summons was served under Part III prior to an information being laid, cancel it and cause the defendant to be so notified.

A summons issued under Part III shall (a) be directed to the defendant, (b) set out briefly the offence in respect of which the defendant is charged, and (c) require the defendant to attend court at a time and place stated therein and to attend thereafter as required by the court in order to be dealt with according to law.

The summons shall be served by a Provincial offences officer by delivering it personally to the person to whom it is directed or, if that person cannot conveniently be found, by leaving it for the person at the person's last known or usual place of abode with an inmate thereof who appears to be at least 16 years of age. Notwithstanding the above, where the person to whom the summons is directed does not reside in Ontario, the summons will be deemed to have been served seven (7) days after it has been sent by registered mail to the person's last known or usual place of abode. Service of a summons on a corporation may be made personally or by registered mail.

(C) Comparison of Part I Proceeding and Part III Proceeding

In comparing a proceeding commenced under Part I of the Provincial Offences Act by way of certificate of offence and summons to a proceeding commenced under Part III of the Provincial Offences Act by way of information, the Part I method is more time effective. Unlike a proceeding under Part I where a certificate of offence and summons may be served on the spot, a proceeding under Part III requires that an information be laid before a justice.)

4

Review and Harmonization of Environmentally

Responsible Procurement

(City Council on June 9, 10 and 11, 1999, struck out and referred this Clause to the Administration Committee for consideration, with a request that all interested parties, including residents, representatives from labour, business, industry and research science, and those persons who appeared before the City Services Committee of the former City of Toronto Council in 1995 on the phasing out of the use of polyvinyl chloride (PVC) pipe, be invited to participate in the deliberations in this regard by appearing in deputation or submitting a communication to the Committee.)

The Strategic Policies and Priorities Committee recommends the adoption of the report (April 26, 1999) from the Chief Financial Officer and Treasurer, subject to adding the following Clauses to the Environmentally Responsible Procurement Policy contained in Appendix "A":

"(7) given the environmental and economic importance of infrastructure, environmentally responsible procurement principles should be fully applied to construction design, processes, tendering and materials; and

(8) given that many environmentally preferred products and services can produce a variety of tangible benefits, full consideration should be given to the long term and complete costs and benefits of green procurement."

The Strategic Policies and Priorities Committee submits the following report (April 26, 1999) from the Chief Financial Officer and Treasurer:

Purpose:

To respond to the request of the Environmental Task Force regarding the "quick start idea" to review and harmonize Environmentally Responsible Procurement.

Financial Implications:

There are no financial implications for either the short term or long term.

Recommendations:

It is recommended that:

(1) the City of Toronto adopt the Environmentally Responsible Procurement Policy attached as Appendix A; and

(2) Interim Purchasing By-Law No. 57-1998 be revised to include the new City of Toronto Environmentally Responsible Procurement Policy.

Council Reference/Background History:

In early September 1998, the Environmental Task Force held a series of focussed workshops in the areas of air, land, water, nature/greenspace, toxics/pollution prevention and sustainable energy strategies. Participants included Task Force members, city staff, representatives from environmental groups and agencies, community groups, business, education and labour. The workshops were chaired by City Councillors who are members of the Task Force. The participants of the workshops were asked to identify priority issues and actions for their topic areas. In addition, they were asked to identify quick start ideas that would result in improvements to the environment, achieve cost savings, create local employment and require limited new resources to implement.

The quick start ideas were prioritized by workshop participants and reviewed by smaller groups of workshop participants and Environmental Task Force staff to identify actions which the Task Force could take or recommend. For those priority quick starts which City or Agency staff were being asked to take action, program staff were consulted to determine feasibility, cost implications, etc. Environmentally Responsible Procurement was identified as a "quick start" idea at two of the workshops.

In addition, the Environmental Task Force at its meeting on December 18, 1998 requested in a report to the Strategic Policies and Priorities Committee that the Commissioner of Finance submit the Environmentally Responsible Purchasing Policy that is being prepared for City Council as soon as possible and submit it to the Environmental Task Force for information en-route to Standing Committee.

A review of Environmentally Responsible Procurement policies of former municipalities was conducted by the Finance Department Purchasing and Materials Management Division and the following are a summary of the findings and recommendations.

Comments:

A review of Environmentally Responsible Procurement activities of the former municipalities has indicated that the former City of Toronto and Metro Toronto had the following Environmentally Responsible Procurement policies:

Former Metro Policy:

In order to contribute to waste reduction and to increase the development and awareness of Environmentally Sound Purchasing, acquisitions of goods and services will ensure that wherever possible specifications are amended to provide for expanded use of durable products, reusable products and products (including those used in services) that contain the maximum level of post-consumer waste and/or recyclable content, without significantly affecting the intended use of the products or service. It is recognized that cost analysis is required in order to ensure that the products are made available at competitive prices.

Former City Policy:

That in order to increase the development and awareness of Environmentally Sound Products all departments, in conjunction with Purchasing and Supply staff review their contracts and tender specifications for goods and services, to ensure that wherever possible and economical, specifications are amended to provide for expanded use of products and services that contain the maximum level of post-consumer recyclable waste and/or recyclable content, without significantly affecting the intended use of the product or service, and that it is recognized that cost analysis is required in order to ensure that the products are made available at competitive prices.

Both policies recognized the need to expand the use of Environmentally Sound Products, that the products/service must be suitable for the intended use to ensure that operational requirements are met and that the products/services must be competitive in cost to ensure that the City/Metro would not pay unnecessary price premiums for these products or restrict competition in its purchasing activities.

The above policies are still being applied to all former City and Metro purchasing activity. The policies however only mention products/services containing maximum levels of post-consumer waste and/or recyclable content in order to minimize waste. They do not mention products/services that result in minimum damage to the environment (i.e. pollutants, non-renewable resources, public health).

Discussions with representatives of the Federal Government Environmental Choice Program (a Federal Government program which identifies products and services having an environmental benefit) has resulted in the Environmentally Responsible Procurement Policy attached as Appendix A. The policy includes the above-mentioned concerns of minimizing damage to the environment.

The policy would ensure that suppliers are aware that the City is looking to expand its use of environmentally preferred products/services, that these products/services are obtained in a competitive manner to ensure best prices possible for the City, that specifications for acquisitions of goods and services are expanded to include such products/services, that the products/services provide the performance required by the City, and would harmonize Environmentally Responsible Procurement practices within the City of Toronto.

Although the new Environmentally Responsible Procurement Policy can be applied to all City Purchasing activity, Guidelines for Environmentally Preferred Products and Services are developed by the Federal Government Environmental Choice Program (ECP). The Purchasing and Materials Management Division will continue to liaise with the ECP to encourage the development of guidelines for all products/services purchased by the City. The guidelines are referenced in specifications for acquisition of goods and services to ensure that those offering environmentally preferred products/services meet the requirements of the guidelines so that the products/services offered are in fact environmentally responsible products.

To ensure that procurement specifications allow for the purchase of environmentally preferred products/services, the Purchasing and Materials Division will continue to work corporately with departments to ensure that specifications for acquisitions of goods and services are expanded to include those products/services.

Conclusions:

In order to ensure that suppliers are made aware of the City's intentions to expand its use of environmentally preferred products/services and to ensure that specifications for acquisitions are expanded to include such products/services, an Environmentally Responsible Procurement Policy has been developed, and included as Appendix A in this report.

The adoption of this policy and its inclusion in Interim Purchasing By-Law No. 57-1998 would not only ensure a harmonization of Environmentally Responsible Procurement activities within the City of Toronto, but would also ensure that the City adopts environmentally responsible procurement practices.

Contact Name and Telephone Number:

Lou Pagano, Director, Purchasing and Materials Management Division

Finance Department

Telephone: 392-7312

Appendix A

City of Toronto

Environmentally Responsible Procurement Policy

"That in order to increase the development and awareness of environmentally preferred products, acquisitions of goods and services will ensure that wherever possible specifications are amended to provide for expanded use of durable products, reusable products, energy efficient products, low pollution products, products (including those used in services) that contain the maximum level of post-consumer waste and/or recyclable content and provide minimal impact to the environment.

An Environmentally Preferred Product (EPP) is one that is less harmful to the environment than the next best alternative. Characteristics of an EPP are as follows:

(1) Reduce waste and make efficient use of resources:

An EPP would be a product that is more energy, fuel, or water efficient, or that uses less paper, ink, or other resources. For example, energy-efficient lighting, and photocopiers capable of double-sided photocopying.

(2) Are reusable or contain reusable parts:

These are products such as rechargeable batteries, reusable building partitions, and laser printers with refillable toner cartridges.

(3) Are recyclable:

A product will be considered to be an EPP if local facilities exist capable of recycling the product at the end of its useful life.

(4) Contain recycled materials:

An EPP contains post-consumer recycled content. An example is paper products made from recycled post-consumer fibre.

(5) Produce fewer polluting by-products and/or safety hazards during manufacture, use or disposal:

An EPP product would be a non-hazardous product that replaces a hazardous product.

(6) Have a long service-life and/or can be economically and effectively repaired or upgraded.

It is recognized that cost analysis is required in order to ensure that the products are made available at competitive prices, and that the environmental benefits provided by a product or service does not undermine its overall performance."

The following persons appeared before the Strategic Policies and Priorities Committee in connection with the foregoing matter:

- Mr. Steven Peck, Green Roofs for Healthy Cities Coalition;

- Ms. Monica E. Kuhn, Architect, Architecture Rooftop Gardens Permaculture Designs; and

- Mr. Rich Whate, Toronto Environmental Alliance, and filed a submission in regard thereto.

(Councillor Augimeri, at the meeting of City Council on June 9, 10 and 11, 1999, declared her interest in the foregoing Clause, in that her husband is a shareholder in a company that deals with environmentally responsible goods.)

5

Summary of the City of Toronto's Response to the

Mayor's Homelessness Action Task Force

and Implementation Plan

(City Council on June 9, 10 and 11, 1999, adopted this Clause, without amendment.)

The Strategic Policies and Priorities Committee recommends the adoption of the following joint report (May 18, 1999) from Mayor Mel Lastman and the Chief Administrative Officer:

Purpose:

To summarize City Council's response to the recommendations of the Mayor's Homelessness Action Task Force report, "Taking Responsibility for Homelessness: An Action Plan for the City of Toronto" and to discuss how to implement the City's action plan.

Funding Sources, Financial Implications and Impact Statement:

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

Recommendations:

It is recommended that:

(1) Council thank the chair and members of the Council Strategy Committee for People Without Homes for their work over the past year in fulfilling the mandate of the committee, and further, that future decision making on implementation of the City's homeless action plan occur through the standing committees of Council;

(2) the Chief Administrative Officer and the Commissioner of Community and Neighbourhood Services convene a meeting of the chairs of the Capital Revolving Fund Reference Group, the Property Management Committee, the Advisory Committee for Homeless and Socially Isolated Persons and the Alternative Housing and Services Committee to ensure coordination of the implementation activities outlined in this report; and

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

Council Reference/Background/History:

On January 14, 1999, Dr. Anne Golden presented the Mayor with the final report of the Mayor's Homelessness Action Task Force. Since that time, the City has placed a high priority on developing its response to the report. In a few short months Council has dealt with the major policy and financial issues directed at the City by the Task Force. Most importantly, City Council has answered the call for strong leadership in addressing Toronto's homeless crisis.

In March, the Mayor brought the Provincial and Federal governments to the table to discuss the role of each level of government in resolving this national crisis. The City also partnered with the Federation of Canadian Municipalities (FCM) to convene the first national conference on homelessness and housing. This event helped to spark a national momentum on these issues and contributed to the design of the FCM National Housing Options paper aimed at generating renewed Federal involvement through a national housing program.

Comments and/or Discussion and/or Justification:

The City has taken action on a number of fronts that respond to the recommendations of the Task Force. The following is a list of the key initiatives (see Appendix D for a more detailed summary).

To date the City of Toronto has:

(1) created a $10.9 million Capital Revolving Fund to lever affordable housing development;

(2) developed terms of reference for the Capital Revolving Fund and set up a reference group to advise Council on use of the fund;

(3) agreed to pursue contributions toward affordable housing under Section 37 of the Planning Act for increases in permitted height and/or density as potential source for replenishing the Capital Revolving Fund;

(4) approved second-suites as-of-right in all single- and semi-detached houses across the city with implementing by-laws to come forward in 60 days;

(5) adopted policies to control condominium conversion/demolition of rental housing;

(6) established a new multi-residential property tax class to encourage the development of new rental housing;

(7) created a $9 million Shelter Fund for families on social assistance;

(8) created a $50,000.00 rent bank for women with children (provision to increase fund to $200,000.00 is in 1999 budget), and $55,000.00 for additional eviction prevention programs;

(9) dedicated between $5 to 7 million of social housing savings to the Mayor's Homeless Initiatives Fund;

(10) decided on a policy of moving away from emergency responses and into prevention strategies;

(11) endorsed, in principle, the draft of the FCM National Housing Policy Options paper; and

(12) contributed $60,000.00 to the Big City Mayor's Homelessness and Housing Initiative to campaign for a national housing program.

The City has also approved implementation of the following initiatives:

(1) developing a semi-annual municipal report card on homelessness;

(2) taking a broad service planning approach that breaks down service silos;

(3) began process to create a development charges by-law that will explore the option of a rebate program for affordable rental housing;

(4) a hostel follow up program to help people find and keep their housing;

(5) bringing together municipal, Provincial, institutional and community partners to determine how to implement the Task Force homeless health strategy that addresses health, mental health and addictions issues; and

(6) bringing together government and community partners to set up more harm reduction programs.

In addition, City Council will be voting on the details of a housing first policy recommending use of municipal lands for affordable housing at its June meeting.

A Role for the Province and the Federal Governments:

The City cannot solve the homeless crisis alone, the Provincial and Federal governments must be part of the solution. The City continues to work with the Province which recently announced a number of homeless initiatives. The Federal government has appointed a minister responsible for homelessness who has agreed to meet with the City to discuss Toronto's homeless crisis. While these first steps are encouraging, we need a stronger commitment by both levels of government.

To date the Province has announced plans to:

(1) dedicate $45 million for new supportive housing units for people with mental illness;

(2) provide grants of up to $2,000.00 for PST paid on new affordable housing development;

(3) spend the $50 million on rent supplements that will come from signing the Social Housing Agreement with the Federal government;

(4) reallocate $2.5 million over next three years from expiring rent supplement contracts to help house 300 to 400 people with special needs;

(5) made public lands available to create up to 500 affordable rental units;

(6) transfer the Community Partners Program and the Supports to Daily Living Program to municipalities; and

(7) commission an affordable housing design competition.

The Province has taken action in the following areas:

(1) increased the Provincial Homeless Initiatives Fund to $10 million province-wide (Toronto receives $4.724 million annually);

(2) increased Community Start Up Benefits for families leaving hostels;

(3) dedicated $1 million to help divert ex-offenders from the hostel system; and

(4) allowed municipalities to redirect some hostel funding to prevention programs.

Further, we need the Province to:

(1) restore demolition control powers for municipalities previously allowed under the Rental Housing Protection Act;

(2) increase the shelter component of social assistance and create a new shelter allowance program for the working poor to ensure people have enough income to afford the housing that is available;

(3) build more supportive housing units in Toronto and across the Province;

(4) provide a housing "tool box" for municipalities with resources such as capital grants/equity or a role in lending;

(5) ensure the creation of second suites does not increase the CVA of residential properties;

(6) come to the table with the City, institutions and community-based services to resolve issues related to people being discharged from institution, hospitals and prisons to no fixed address.

To date the Federal government has:

(1) appointed a minister responsible for homelessness who is conducting a cross-Canada tour to discuss homelessness issues and solutions;

(2) provided additional funding through the Residential Rehabilitation and Prevention Program for rental apartments and rooming houses($6.5 million for Toronto in 1999); and

(3) provided funding support through Human Resources Development Canada to a number of community-based homeless initiatives including Community Information Toronto to create a central bed registry.

Further, we need the Federal government to:

(1) establish a $300 million annual capital program for low-income housing;

(2) make CMHC mortgage insurance conditions easier for low-cost housing;

(3) provide direct lending by CMHC to get the lowest possible mortgage interest rates;

(4) provide GST rebates for affordable housing development;

(5) provide capital funding for the creation of second suites;

(6) consider income tax relief for income from second suites;

(7) contribute $7 million (annually) in RRAP funding to Toronto for rental apartments, rooming houses and second suites;

(8) make government-owned land available for affordable housing; and

(9) come to the table with the City of Toronto and its community partners to develop strategies to address the needs of Aboriginal people and immigrants and refugees who are homeless.

Implementing the City's Action Plan on Homelessness:

The Council Strategy Committee for People Without Homes was established last year through a recommendation by the Transition Team with a mandate to analyze the Mayor's Homelessness Action Task Force report. The City has developed its response to the Task Force report and has moved on to implementation. In that regard, there are a number of committees in place to help inform implementation of the City's action plan on homelessness. These groups, listed below, have a mix of politicians, City staff, community and private sector representatives and Federal and Provincial officials:

(a) the Capital Revolving Fund Reference Group is comprised of a municipal councillor, City staff, community-based and private-sector housing representatives, Provincial and Federal officials. This group assesses proposals for housing demonstration projects;

(b) the Property Management Committee includes City staff from relevant departments that will serve as one forum for reviewing options to use City-owned land for affordable housing;

(c) the Advisory Committee on Homeless and Socially Isolated Persons includes representatives from a range of community agencies, homeless people, hostels, drop-ins, outreach services, police, mental health and addictions agencies, faith communities, Provincial and municipal staff and city councillors. The committee advises the City on service priorities and emerging issues in the sector; and

(d) the Alternative Housing and Services Committee is also a community based group that functions primarily as a staff reference group to the Shelter, Housing and Support Division of Community and Neighbourhood Services on the development of innovative homeless and housing initiatives.

As these committees are already in place and the Council Strategy Committee for People Without Homes has fulfilled its mandate, it is recommended that Council thank the chair and members of the Council Strategy Committee for their contribution to the City's response to the homeless crisis. Future decision making as the City's homeless action plan continues to roll out should occur through the standing committees. Funds made available to the Council Strategy Committee should be redirected to support the work of the above four committees. A report will be forthcoming on the recommended use of the funds.

In addition, it is recommended that the Chief Administrative Officer and the Commissioner of Community and Neighbourhood Services convene a meeting of the chairs of the Capital Revolving Fund Reference Group, the Property Management Committee, the Advisory Committee for Homeless and Socially Isolated Persons and the Alternative Housing and Services Committee to ensure coordination of the implementation activities outlined in this report.

An Interdepartmental Staff Group:

Homelessness is an issue that cuts across many of the City's departments including Community and Neighbourhood Services incorporating Public Health and the Toronto Housing Company, as well as Urban Planning and Development Services, Finance and Corporate Services. These departments have worked closely together over the last few months assisting Council with its analysis of the Task Force report. In order to guide implementation of the City's homelessness initiatives, an ongoing interdepartmental staff group should be established with the Commissioner of Community and Neighbourhood Services as the designated executive lead on homeless issues.

The staff group will provide direction and guidance as implementation of the City's homeless action plan unfolds. As issues arise, Council will provide direction and decision making through appropriate standing committees. The staff group will need to develop a work plan to identify both short and long term initiatives with clear time lines. This work plan should be flexible enough to accommodate emerging issues and to encourage proactive responses.

A Municipal Report Card on Homelessness:

The City will develop a semi-annual report card on homelessness that will document the state of homelessness in Toronto and act as a monitoring tool and an accountability mechanism to assess progress in addressing homelessness. As a monitoring tool it will document initiatives that support or contravene the City's action plan. It will also hold the City accountable for implementing the homeless action plan approved by City Council.

Conclusions:

The City of Toronto has taken and must continue to take a strong leadership role to address homelessness. Council has taken action on the key recommendations of the Task Force directed at the City and must continue to call on the Provincial and Federal government's to do their part. However, the homeless crisis is still growing in Toronto and more work needs to be done.

The City is committed to implementing all of the initiatives approved by Council. This will require partnerships with other levels of government, institutions and the community-based sector. An interdepartmental group will be set up to guide the roll out of these initiatives. The City will be accountable to the public for implementing its homeless action plan through the new report card on homelessness.

Contact Name:

Shirley Hoy, Commissioner of Community and Neighbourhood Services

Phone: 392-8302, Fax: 392-8492.

--------

Appendix A

Summary of Mayor's Homelessness Action Task Force

Directions adopted by City Council.

A Municipal Report Card on Homelessness:

The City will develop a municipal report card on homelessness, as recommended by the Task Force, to function as a monitoring tool and accountability mechanism to ensure implementation of the City's action plan on homelessness. A proposed format for the report card will be submitted to Council by the Fall. The report card itself will be presented to the Policy and Finance Committee twice a year.

A set of key indicators will need to be developed that reflect the pressure points in the system such as the number of evictions, the number of people using emergency shelter, the use of health and mental health facilities, estimates of gaps in service, social housing waiting lists and progress towards a more sufficient and equitable distribution of affordable and supportive housing and services across the city, region and province.

Co-ordinating and Simplifying the Service System:

In recognition of the need for a comprehensive database of social, health, and housing services and central bed registry, the City supports the efforts of Community Information Toronto (CIT) to establish a bed registry with funding from Human Resources and Development Canada.

Capital funding to upgrade drop-in centres and hostels is essential. Significant funds are required to maintain and upgrade these buildings and the City does not have a capital fund for this purpose. The City has approached the Province to provide a $1.5 million capital fund for hostels and to expand support currently available under the Health and Safety grant program for capital upgrades and food equipment for drop-in centres.

The City agrees with the Task Force that a comprehensive, integrated service planning approach is needed to help break down existing service silos and to ensure effective service delivery for people who are homeless. Service planning will be done according to three sub-groups: families, youth and singles. In addition, the City will continue to channel resources into prevention programs to help people from losing their housing.

The Province recently announced plans to increase the Provincial Homelessness Initiatives Fund by an additional $6 million. The City of Toronto's share is $3.704 bringing the annual amount to $4.724 million. The City must report to the Province by June 1999 on how these new dollars will be allocated. Funding priorities for the City include prevention and diversion programs consistent with the Task Force emphasis on this service focus.

Specific Strategies for High Risk Groups:

Families:

The growing number of homeless families is of critical concern for the City. Families are staying for longer periods of time in hostels because of the lack of affordable housing. Extended stays present numerous issues, especially for the children. The City has approved a number of short-term strategies such as how to address the education issues for children of homeless families and the need for a long-term strategy to distribute family hostels more equitably across the city to reduce the current concentration in Scarborough.

Youth:

The City funds youth shelters and community-based youth services, however, the rise in youth homelessness indicates more needs to be done. The City will urge the Province to support the Breaking the Cycle funding proposal to develop a substance abuse treatment program for young parents. The City, in partnership with Eva's Place youth shelter, is developing a transitional housing support program. An area in which the City will become more proactive is establishing partnerships between youth shelters and local landlords to create more housing units for youth.

Abused Women:

At least as many abused women stay in emergency shelters as stay in abused women's shelters. As of 1998, the Province is responsible for funding abused women's shelters. As a long-term goal, the City is encouraging the Province to expand the abused women's shelter system by 380 beds to ensure women have appropriate support in this regard. In the short-term, the Province is urged to fund community agencies to provide support to abused women forced to stay in emergency hostels due to lack of space in the abused women's shelter system.

Aboriginal People:

Aboriginal people are disproportionately represented among the homeless and require a range of supports and services with are culturally appropriate. As a first step in developing a strategy for this group, the City will approach the Federal government to designate a senior representative to work with the City and representatives of Aboriginal organizations.

Immigrants and Refugees:

The City of Toronto will seek the appointment of a Federal representative to work with the municipality and representatives of the immigrant and refugee service sector to discuss a broad range of immigration and refugee policy and program issues including those related to homelessness. Refugee claimants are most at risk of becoming homeless, in large part due to the limited supports and opportunities available to them upon arrival in Canada. Basic settlement and health services for refugee claimants as well as another shelter in Toronto, specifically for refugees, are key areas in which the City will seek Federal funding.

A Shift to Prevention Strategies:

The City will continue to shift away from emergency responses to prevention strategies by directing resources into prevention and diversion strategies while at the same time trying to address the growing demands on the emergency shelter system.

Addressing Affordability Issues for People in receipt of Social Assistance:

The City supports the Task Force recommendations to address the critical affordability issues of people in receipt of social assistance. These include asking the Province to increase the shelter component of social assistance to better reflect local market conditions and creating a new shelter allowance program for the working poor. The Province has not implemented either recommendation.

First and Last Month's Rent for Ontario Works Recipients:

Under the Ontario Works legislation, last month's rent can be accessed once a year through Community Start Up Benefits (CSUB). These benefits are available for people leaving hostels or institutions or who are fleeing an abusive situation. The Province recently announced plans to increase CSUB from the current maximum of $799.00 to $1,500.00 for families leaving hostels which more accurately reflects these costs.

The City has created a new shelter fund (approximately $9 million for 1999) using the municipal savings from the National Child Tax Benefit. This will be used to help families in receipt of social assistance with first and last month's rent, rental arrears, to secure, maintain or move to more appropriate/suitable housing to help prevent homelessness among families.

Hostel Follow Up:

The City supports the Task Force direction to target resources to strategies that help people move out of hostels and into housing and for follow up support to help people keep their housing. This shift has already begun but the City has been limited due to budget constraints.

Hostel operators agree that follow up would make a tremendous difference in helping people to maintain their housing. This kind of support would likely reduce recidivism and make a significant difference to the City's hostel costs as it is estimated that while only 17 percent of people staying in hostels are classified as "chronic" users, they use 46 percent of the hostel system resources. Funding for this type of program (estimated at $2.2 million annually) will be considered under the allocation priorities of the recently increased Provincial Homeless Initiatives Fund.

Housing Help:

The Task Force recommends that housing help services be provided at welfare offices by purchase-of-service contracts between Social Services and community-based agencies which provide housing help support. This direction is consistent with existing Social Services policy initiatives to use all available means to assist clients to find and maintain affordable and adequate housing. However, there is no mechanism to fund housing help services under the current Ontario Works legislation.

In 1999, the City has allocated almost $350,000.00 in 1999 for community-based housing help services through the Provincial Homeless Initiatives Fund. While these programs are not located in welfare offices they are targeted to people with low-incomes, many of whom are in receipt of social assistance. City staff will collaborate with agencies which provide housing-help support to determine the most appropriate mechanism for providing this support for the year 2000 and beyond.

The Province plans to download administration of the Ministry of Municipal Affairs and Housing, Community Partners Program, to municipalities. Toronto's share of this program is $900,000.00. Funding will continue to flow from the Province. This initiative is appropriate for the City which funds many of the same housing help and support services. It will enable a more integrated and systematic approach to funding and service delivery.

Eviction Prevention:

Consistent with directions proposed by the Task Force the City will continue to fund a rent bank for women and children. The final evaluation of this pilot project in the Fall will inform the decision to increase this fund to $200,000.00, an amount already approved by Council.

A report reviewing the City's current $55,000.00 eviction prevention program and making recommendations for future directions of this program will be before Community and Neighbourhood Services in May. The report will also document significant impacts of the new Tenant Protection Act on tenancy stability and the need for ongoing monitoring. As part of the City's effort to shift away from emergency responses to preventative approaches, eviction prevention is emerging as a key area for funding and program support.

The eviction prevention report will also support the Task Force call to urge the Province to increase funding to community legal clinics. The report does not support the Task Force recommendation for "fast track" evictions in suites in owner-occupied properties as the Tenant Protection Act has already significantly reduced the length of time needed to process an eviction application. A report on a review of funding for the FMTA hotline will go to Community and Neighbourhood Services Committee in early summer.

Community Economic Development (CED):

The City currently allocates about $150,000.00 for CED initiatives through its municipal grants programs. The City is reviewing its role with respect to CED initiatives and will be reporting out to Council. Consideration of the Task Force recommendation regarding the Productive Enterprises Fund will be done within the context of this review.

Discharge Planning:

The Province has announced $1 million in funding for the Ontario Multi-Faith Council for discharge planning, including follow up, for people leaving correctional facilities. The Commissioner of Community and Neighbourhood Services will convene a meeting with this group, the John Howard Society and the Elizabeth Fry Society, on the development of these policies. The City will also urge the Province to develop appropriate discharge policies for health and mental health institutions.

A Homeless Health Strategy

The Task Force outlines a comprehensive health strategy to address the health and mental health needs of the homeless population. This includes ways to remove barriers to accessing comprehensive health care. The City is in the process of bringing together municipal, Provincial and community partners to develop a strategy to implement the health recommendations contained in the Task Force report. The City will also urge the Province to earmark funds from the transfer of Federal monies for health and social services to a dedicated Homeless Health Fund.

The City has approved a homelessness action strategy for Public Health Services building on the existing range of preventative, support and treatment services for homeless persons. This includes five additional full-time positions to support underserviced areas.

The City has committed to taking the lead in bringing together key government and community partners to establish additional harm reduction programs to address the needs of the "hardest to serve", people with a drug and/or alcohol addiction or both a mental illness and an addiction.

Supportive Housing:

The Task Force emphasized supportive housing as key to solving the homeless crisis. Council has called on the Province to build 5,000 new supportive housing units in Toronto over the next five years while at the same time adding 8,500 new units across the Province. The Province has committed to $45 million to develop new supportive housing with $20 million allocated in the first year to provide 1,000 new units. This is a smaller scale than is recommended or needed but is a positive first step.

The City will urge the Province to ensure that the definition of special need and eligibility for supportive housing is broad enough to include "hard to house" homeless people whether they have a diagnosis of mental illness or not. The Province is also to expand the Habitat Services program by 200 beds in the year 2000.

The Province plans to download the Support to Daily Living Program to municipalities. This program is currently administered by the Ministry of Community and Social Services and funds supports for housing for "hard-to-house" and homeless people. The total cost of this program for agencies in Toronto is approximately $3 million. The City will ask the Province to maintain administration of this program in recognition of its responsibility for supportive housing.

Affordable Rental Housing:

The City has a key role through its land use process to enable the creation of affordable housing. It has significant resources at its disposal to help lever the development of affordable housing such as land, a capital fund and the capacity to set development charges and rental property taxes. It also has planning tools such as restricting condominium conversions and demolitions, liberalizing policies related to the legalization of second suites and rooming houses under certain land use criteria, and utilizing the provisions of the Planning Act (section 37) addressing density incentives. A viable housing strategy must include the preservation of existing rental stock, the stimulation of new rental supply and solutions to affordability issues.

(1) Preserving the Existing Housing Stock:

The existing rental housing provides the largest number of affordable units for low-income people. Therefore, efforts to preserve the housing we do have available is a critical component of the City's homelessness action plan. Council has adopted new Official Plan policies and related by-laws regarding condominium conversion and demotion of affordable rental housing. The City is seeking additional authority from the Province in the area of demolition control.

Rehabilitation of private apartments for non-profit use can make cost-effective use of public dollars, and is a way of targeting existing stock to those with affordability problems while also upgrading it. Rehabilitation is seen as a necessary part of a municipal housing mandate. As a delivery agent for the Federal Residential Rehabilitation Assistance Program, the City is currently in the process of allocating more than $6.5 million in one-time, additional Federal assistance to rooming houses and rental properties in Toronto. This assistance will help repair and preserve about 500 units and will help to bring over 150 units on-stream, at affordable rent levels.

(2) Stimulating New Rental Supply:

All levels of government have a significant role to play in helping to "level the playing field" between new rental production and other housing production. Two important steps have already been taken in this regard. First, the City has established a special property tax class for new multi-residential rental housing set at the same rate as residential. The current Provincial legislation limits this new tax class to eight years therefore the City will seek an extension beyond this time period. Secondly, the Province has announced a PST rebate on building materials for new multi-residential rental construction of up to $2,000.00 over the next three years. The City is urging an extension beyond this time period.

Equitable GST treatment is also needed to stimulate supply. At 7 percent, GST adds approximately $8,500.00 to private rental unit production costs. Setting it a the freehold rate of 4.5 percent would create a more equitable playing field. The City of Toronto has urged the Federal government to implement this important recommendation.

The City is exploring options for streamlining approvals that build on current efforts and take into account best practices as amalgamation provides an opportunity to establish a corporate-wide, fast-track process.

Second suites already provide a significant number of affordable apartments (the Task Force estimates that one out of every five rental units in Toronto is a second suite). City Council has approved second suites as-of-right in all single- and semi-detached houses, subject to building, fire and planning standards. Council will call on the Federal government to provide capital funding for the creation of second suites and seek income tax relief for income from second suites. And further, to ask the Province to ensure the creation of second suites does not increase the CVA of residential properties;

The City is in the process of creating a development charges by-law. The by-law will establish a set of charges against new residential and non-residential development. The charges are intended to fund improvements in the City's infrastructure needed to accommodate new development. With respect to affordable housing, options such as a rebate program is being explored as a means of encouraging new construction. The City will hold a public meeting on June 24 to provide an opportunity for stakeholder input on this issue. The proposed by-law is expected to be tabled for approval at Council in July 1999.

A "housing first" policy has been adopted by the City to facilitate the development of new affordable housing stock. A report (May 3, 1999) entitled "Housing First Policy for Surplus City-owned Property" is also before the Strategic Policies and Priorities Committee on June 1, 1999. This report outlines a proposal for a City, Housing First Policy. The report also recommends that the City commit to creating 900 affordable housing units over the next three years. In addition, that City staff report on the development of a five year capital program for housing with financing options that would include use of the Capital Revolving Fund.

The City has also created an interdepartmental Property Management Committee which could function as one forum for reviewing options pertaining to city-owned land for affordable housing.

The Province has offered to make government-owned land available and will be commissioning an affordable housing design competition. The City welcomes this initiative and will seek to establish a process for working with the Province to identify potential sites.

The City has created a $10.9 million Capital Revolving Fund to assist in the development of new affordable housing and is partnering with the private and non-profit sector on several affordable housing demonstration projects. A reference group of private-sector representatives and others has been set up to provide expert advice in the operations of the fund. City staff are also initiating a proposal for a study and design "charette" on what models of singles housing suit what types of low-income single people.

Toronto has called on the Federal government to create a $300 million annual capital program for low-income housing. The City will also ask the Federal government to increase mortgage and financing assistance make government-owned land available for affordable housing development. In addition, the City will urge the Province to support municipal affordable housing partnerships through measures such as capital grants/equity or a role in lending, where it has existing capability.

(3) Addressing Affordability Issues:

A growing number of people are struggling to afford rental housing rates in Toronto. Rents have been rising while tenant incomes have stayed the same or fallen. In an effort to address some of the affordabiltiy issues, the City will implement a consistent approach on the use of Section 37 of the Planning Act to secure public benefits in exchange for extra height and/or density. The former City of Toronto secured a wide variety of benefits in this way (e.g., social housing, workplace daycare, community service space), providing most of the funds for the Capital Revolving Fund. Council has approved continuation of this practice of using Section 37 to secure public benefits for affordable housing.

Rent supplements are needed to cover the gap between market and affordable rents. The Province has announced a commitment to spend $50 million in savings on rent supplements from the pending Provincial/Federal Social Housing Agreement, reallocating $2.5 million over the next three years from expiring rent supplement contracts to help house 300-400 people with special needs. The City will seek input on the design of the rent supplement with a goal of immediate implementation.

The City will explore issues related to rooming houses as proposed by the Task Force. Staff will report at a later date following an interdepartmental and community consultation process.

Social Housing Savings:

The City is realizing approximately $5 to 7 million in social housing savings as old mortgages on city housing projects are renegotiated at today's lower interest rates. These funds will be placed in the Mayor's Homeless Initiatives Fund.

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Appendix B

Municipal Operating Expenditures for Homeless Services

City Budget 1998 City Budget 1999

Expenditure

Gross

(million $)
Revenue

(million $)
Net

(million $)
Gross

(million $)
%

Incr.
Revenue

(million $)
Net

(million $)
%

Inc.
Emergency

Shelter

59,189,000
43,098,000

(Province)

16,091,000
69,057,000
17
47,655,000

(Province)

21,402,000
33
Grants to

Homeless

Services

2,200,000
0.00
2,200,000 7,003,700
218
4,724,000

(Province)

2,297,700
4
Totals 61,318,756 43,098,000 18,291,000 76,060,700
24
52,379,000 23,699,700
30

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Municipal Capital Expenditures for Homeless Services

City Budget 1998 City Budget 1999

Expenditure

Gross
Revenue
Net
Gross
%

Incr.

Revenue
Net
%

Inc.
Capital

Revolving

Fund

$10,900,000
n/a
$0.00
$10,900,000
n/a
Provincial

Health and

Safety Grants

$ 168,656
$ 168,656

(province)

$0.00

Not

determined

yet.

Residential

Rehabilitation

Assistance

Program

$ 1,150,100

(Federal

grants)

$ 7,966,400

(Federal

grants)*

Totals
$ 1,318,756 $ 168,656
$0.00
$ 18,866,400 $10,900,000

* This number includes an estimated $6.5 million in one-time only additional RRAP funds for 1999 and $1,466,400.00 in regular RRAP grants for the former City of Toronto area.

These items have been approved through the City's 1999 budget process.

--------

Reserves from Social Housing

Expenditure

City Budget 1999

Source

Comments

Mayor's Homeless Initiatives Fund

$5 - 7,000,000

Social Housing Savings

Staff report pending on proposed use of fund.

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Appendix C

Recommendations that impact City of Toronto Operating Budget

Task Force Recommendations
City Response Recommendations
Task Force

Rec No.

Description of

Recommendation

Task Force Estimates of Costs to City City Estimates

of Cost

for 1999

City Estimates of Cost

for 2000

Comments
1 Appoint a Facilitator for Action on Homelessness $600,000

(for 5 years)

to be

determined

to be determined Pending outcome of meeting with Federal and Provincial governments on resources/structure required
7 Hostel follow up program (to help people out of hostels, to maintain housing and to reduce recidivism) Funding from redirected savings estimated by Task Force at $3 million $2.2 million

(phase in) *

$4.4 million

(annualized)

Pending outcome of meeting with Federal and Provincial governments on resources/structure required
37 Adjustment of Ontario Works GTA shelter component set to median rents $6.5 million

(net)

undetermined undetermined dependent upon case load and contingent upon Provincial approval to adjust benefit levels
40 Rent Bank $500,000 $200,000

in current budget

$200,000 (+)

in current budget

Funding from City Homeless Initiatives Fund and Provincial (100%) Homeless Initiatives Fund
42 Purchase of Service housing help at welfare offices $300,000 undetermined undetermined Subject to program funding of 80:20 or administration funding of 50:50 with Province.
45 First and last months rent for Ontario Works recipients who move $3 million $9 million

shelter fund for families with children

$9 million

shelter fund for families with children

Fund through reinvested National Child Benefit Savings
50 Community Economic Development programs

(annual for 3 years)

$100,000 $150,000

in current budget

$150,000

in current budget

Currently in municipal grants budget. City role in CED under review
88 Additional rent supplement (100 % municipal dollars, average cost -1 to 3 yrs) $7 million undetermined undetermined Secured under Mayor's Task Force reserve fund

* Funding for these initiatives will be considered under the increase to Toronto's share of the Provincial Homeless Initiatives Fund. This fund has been increased from $1.02 million annually to $4.724 million annually. These are 100 percent Provincial dollars.

These items have been approved through the City's 1999 budget process.

Appendix D

Recommendations that impact City of Toronto Capital Budget

Task Force Recommendations to City

City Response to Recommendations

Task

ForceRec. No.

Task Force

Recommendation

Task Force Estimates to City for 1999

City Estimates of Cost for

1999

City Estimates of Cost for 2000

Comments

4 & 5

24-hour Homeless Service Info System and bed registry with access by all service providers

$300,000

(operating costs)

$50,000 *

for feasibility plan prior to implementation

$300,000 - $500,000

(operating costs)

Funding secured from Human Resources and Development Canada for bed registry

8

Upgrade hostels

$500,000

(annual for

5 years)

to be determined

to be determined

City recommends Province establish capital fund

11

Health and safety upgrades in drop-ins

$300,000

(annual over 3 - 5 years)

$50,000 *

for facilities audit

to be determined

City recommends Province establish capital fund.

A facilities audit is needed to assess need in the sector.

13

Food equipment for drop-ins

$100,000

(annual over 3 - 5 years)

to be determined

to be determined

City recommends Province establish capital fund

77

City "Homelessness Community Fund"

$10 million

$10.9 million

in current budget

undetermined

Represents the City's Capital Revolving Fund approved by Council in February 1999

* Funding for these initiatives will be considered under the increase to Toronto's share of the Provincial Homeless Initiatives Fund. This fund has been increased from $1.02 million annually to $4.724 million annually. These are 100 percent Provincial dollars.

These items have been approved through the City's 1999 budget process.

6

Community Based Affordable Housing

Demonstration Project

647-657 Lawrence Avenue West at Allen Road

(Ward 8 - North York Spadina)

(City Council on June 9, 10 and 11, 1999, adopted this Clause, without amendment.)

The Strategic Policies and Priorities Committee recommends the adoption of the Recommendation of the Budget Committee embodied in the following communication (May 26, 1999) from the City Clerk, subject to inserting the following new Recommendation No. (2) in the joint report (May 4, 1999) from the Commissioner of Community and Neighbourhood Services and the Commissioner of Corporate Services; and renumbering the remaining Recommendations accordingly:

"(2) Council declare surplus the property known as number 647-657 Lawrence Avenue West for the purposes of, and to the extent required by, the lease recommended herein, and that the appropriate City Officials take all steps necessary to give effect to By-law No. 551-1998;";

so that the Recommendations embodied in the aforementioned joint report now reads as follows:

"It is recommended that:

(1) the business case from Out of the Cold and Congregation Darchei Noam for below market rental housing be accepted as an Affordable Housing Demonstration Project;

(2) Council declare surplus the property known as number 647-657 Lawrence Avenue West for the purposes of, and to the extent required by, the lease recommended herein, and that the appropriate City Officials take all steps necessary to give effect to By-law No. 551-1998;

(3) vacant lands at 647-657 Lawrence Avenue West previously withheld from sale be leased to the not-for-profit corporation to be established jointly by Out of the Cold and Congregation Darchei Noam for a term of 49 years at a rate of $2.00 per year, subject to terms and conditions which are satisfactory to the Commissioner of Corporate Services and the Commissioner of Community and Neighbourhood Services and in a form acceptable to the City Solicitor;

(4) the continued provision of below-market rental units by the not-for-profit group be secured through the review provisions in the land lease agreement with the City;

(5) subject to the final approval of the Commissioner of Community and Neighbourhood Services, that the following funds be provided from the Capital Revolving Fund for Affordable Housing:

(a) a capital grant of $10,000.00 per unit to a maximum of $240,000.00; and

(b) a no-interest, second mortgage of up to $600,000.00, for a maximum of 35 years, to be repaid to the Capital Revolving Fund from net cash flow;

(6) the final amount of the second mortgage from the Capital Revolving Fund for Affordable Housing be adjusted by the Commissioner of Community and Neighbourhood Services to reflect the budget reductions from the use of innovative building technologies, budget refinements, or other cost-saving measures;

(7) in order to reduce the cost of private construction financing, City officials are authorized to disburse the capital grant from the Capital Revolving Fund for Affordable Housing to the not-for-profit corporation as soon as possible after the building permit is issued;

(8) Council agree in principle that all planning, development and building permit fees and charges for 647-657 Lawrence Avenue West, should be waived or forgiven and that:

(a) the Commissioner of Urban Planning and Development Services waive all application fees or costs of giving notice under The Planning Act;

(b) the Commissioner of Economic Development, Culture and Tourism and the Commissioner of Urban Planning and Development Services, in consultation with the City Solicitor, report by September 1999, on the measures required to exempt this development from building permit fees and the payment in lieu of parkland; and

(c) Toronto Hydro be requested to waive or forgo any required connection fee or charge;

(9) the cost of the 22-metre centre median on Lawrence Avenue West required as a condition of previous site plan approval be provided for in the 2000 Works and Emergency Services capital budget. The current estimated construction cost is $8,000.00;

(10) the lease commencement date, the advancement of the capital grant and second mortgage from the Capital Revolving Fund for Affordable Housing be conditional upon the not-for-profit group obtaining a first mortgage commitment within six months of the zoning by-law for the lands coming in to force."

(11) City officials be authorized to take such actions as are required to implement these recommendations; and

(12) City Council request the Federal Government to rebate the GST for this community based affordable housing project.

The Strategic Policies and Priorities Committee submits the following communication (May 26, 1999) from the City Clerk:

Recommendations:

The Budget Committee on May 25, 1999, recommended to the Strategic Policies and Priorities Committee, and Council, the adoption of the joint report (May 4, 1999) from the Commissioner of Community and Neighbourhood Services and the Commissioner of Corporate Services, as amended by the Corporate Services Committee, subject to adding the following Recommendation:

"(11) that City Council request the Federal Government to rebate the GST for this community based affordable housing project."

The Budget Committee reports, for the information of Strategic Policies and Priorities Committee and Council, having requested the Commissioner of Community and Neighbourhood Services to ensure that in every instance where subsidized units are created by the City, the residents of such units must be from the City's existing prioritized waiting list and/or from shelter housing.

Background:

The Budget Committee had before it a communication (May 20, 1999) from the City Clerk advising that the Corporate Services Committee on May 20, 1999, recommended to the Budget Committee, and Council, the adoption of the joint report (May 4, 1999) from the Commissioner of Community and Neighbourhood Services and the Commissioner of Corporate Services, subject to:

(1) amending Recommendation No. (2) by deleting the words "on a long term basis at an initial" and inserting in lieu thereof the words "for a term of 49 years at a", so that such Recommendation now reads as follows:

"(2) vacant lands at 647-657 Lawrence Avenue West previously withheld from sale be leased to the not-for-profit corporation to be established jointly by Out of the Cold and Congregation Darchei Noam for a term of 49 years at a rate of $2.00 per year, subject to terms and conditions which are satisfactory to the Commissioner of Corporate Services and the Commissioner of Community and Neighbourhood Services and in a form acceptable to the City Solicitor;" and

(2) amending Recommendation No. (9) by adding before the word "advancement" the words "lease commencement date, the" so that such Recommendation now reads as follows:

"(9) the lease commencement date, the advancement of the capital grant and second mortgage from the Capital Revolving Fund for Affordable Housing be conditional upon the not-for-profit group obtaining a first mortgage commitment within six months of the zoning by-law for the lands coming in to force."

Ms. Joanne Campbell, General Manager, Shelter Housing and Support Division, Community and Neighbourhood Services, appeared before the Budget Committee in connection with the foregoing matter.

--------

(Communication dated May 20, 1999, addressed to the

Budget Committee from the City Clerk)

Recommendations:

The Corporate Services Committee on May 20, 1999, recommended to the Budget Committee, and Council, the adoption of the joint report (May 4, 1999) from the Commissioner of Community and Neighbourhood Services and the Commissioner of Corporate Services subject to:

(1) amending Recommendation No. (2) by deleting the words "on a long term basis at an initial" and inserting in lieu thereof the words "for a term of 49 years at a", so that such Recommendation now reads as follows:

"(2) vacant lands at 647-657 Lawrence Avenue West previously withheld from sale be leased to the not-for-profit corporation to be established jointly by Out of the Cold and Congregation Darchei Noam for a term of 49 years at a rate of $2.00 per year, subject to terms and conditions which are satisfactory to the Commissioner of Corporate Services and Commissioner of Community and Neighbourhood Services and in a form acceptable to the City Solicitor;" and

(2) amending Recommendation No. (9) by adding before the word "advancement" the words "lease commencement date, the" so that such Recommendation now reads as follows:

"(9) the lease commencement date, the advancement of the capital grant and second mortgage from the Capital Revolving Fund for Affordable Housing be conditional upon the not-for-profit group obtaining a first mortgage commitment within six months of the zoning by-law for the lands coming in to force."

Background:

The Corporate Services Committee at its meeting on May 20, 1999, had before it a joint report (May 4, 1999) from the Commissioner of Community and Neighbourhood Services and the Commissioner of Corporate Services, recommending that as a result of a request for proposals issued by the City of Toronto for City-owned land at 647-657 Lawrence Avenue West, and with the advice of the Reference Group for the Capital Revolving Fund for Affordable Housing:

(1) the business case from Out of the Cold and Congregation Darchei Noam for below market rental housing be accepted as an Affordable Housing Demonstration Project.

(2) vacant lands at 647-657 Lawrence Avenue West previously withheld from sale be leased to the not-for-profit corporation to be established jointly by Out of the Cold and Congregation Darchei Noam on a long-term basis at an initial rate of $2.00 per year, subject to terms and conditions which are satisfactory to the Commissioner of Corporate Services and the Commissioner of Community and Neighbourhood Services and in a form acceptable to the City Solicitor;

(3) the continued provision of below-market rental units by the not-for-profit group be secured through the review provisions in the land lease agreement with the City;

(4) subject to the final approval of the Commissioner of Community and Neighbourhood Services, that the following funds be provided from the Capital Revolving Fund for Affordable Housing:

(a) a capital grant of $10,000.00 per unit to a maximum of $240,000.00; and

(b) a no-interest, second mortgage of up to $600,000.00, for a maximum of 35 years, to be repaid to the Capital Revolving Fund from net cash flow;

(5) the final amount of the second mortgage from the Capital Revolving Fund for Affordable Housing be adjusted by the Commissioner of Community and Neighbourhood Services to reflect the budget reductions from the use of innovative building technologies, budget refinements, or other cost-saving measures;

(6) in order to reduce the cost of private construction financing, City officials are authorized to disburse the capital grant from the Capital Revolving Fund for Affordable Housing to the not-for-profit corporation as soon as possible after the building permit is issued;

(7) Council agree in principle that all planning, development and building permit fees and charges for 647-657 Lawrence Avenue West, should be waived or forgiven and that:

(a) the Commissioner of Urban Planning and Development Services waive all application fees or costs of giving notice under The Planning Act;

(b) the Commissioner of Economic Development, Culture and Tourism and the Commissioner of Urban Planning and Development Services, in consultation with the City Solicitor, report by September 1999, on the measures required to exempt this development from building permit fees and the payment in lieu of parkland; and

(c) Toronto Hydro be requested to waive or forgo any required connection fee or charge;

(8) the cost of the 22-metre centre median on Lawrence Avenue West required as a condition of previous site plan approval be provided for in the 2000 Works and Emergency Services capital budget. The current estimated construction cost is $8,000.00;

(9) the advancement of the capital grant and second mortgage from the Capital Revolving Fund for Affordable Housing be conditional upon the not-for-profit group obtaining a first mortgage commitment within six months of the zoning by-law for the lands coming in to force; and

(10) City officials be authorized to take such actions as are required to implement these recommendations.

--------

(Joint report dated May 4, 1999, addressed to the

Corporate Services Committee from the

Commissioner of Community and Neighbourhood Services

and the Commissioner of Corporate Services)

Purpose:

To request:

(i) approval for the lease of the City-owned land at Lawrence Avenue West and Allen Road to a not-for-profit community group to allow the group to construct 24 units of affordable and below-market rental housing;

(ii) approval of the business case for financial assistance, as recommended by the Advisory Reference Group of the Capital Revolving Fund for Affordable Housing; and

(iii) approval to request the Province and Federal Government to contribute capital or operating funds to the project or forgo development and tax revenue.

Funding Sources, Financial Implications and Impact Statement:

Capital Revolving Fund for Affordable Housing:

The Capital Revolving Fund is recommended as the primary source of City funds to facilitate the Demonstration Project. A capital grant of $10,000.00 per unit and a no-interest second mortgage from the Fund is proposed as it will enable the community group to secure private mortgage funding for the majority of the cost.

Delayed and Foregone Revenue:

There is an impact on potential revenues as it is recommended that all planning, development and building fees be waived. It is further recommended that the land be leased to the not-for-profit community group at a nominal rate, thereby delaying the short-term achievement of revenue from the sale of the land. The market value of the land was previously estimated at $322,000.00 in late 1995. A current appraisal is being obtained.

Capital Budget:

There would be a very small increase of $8,000.00 in next year's Works and Emergency Services capital budget for minor traffic management measures on Lawrence Avenue West.

Increase in City Revenues:

City revenues would increase in the first year of the development through the payment of approximately $33,700.00 in annual reality taxes. Currently no tax revenue is generated as the property is vacant and is not entered in the City's tax rolls. From the second year onwards, an escalating repayment of the second mortgage would begin to the Capital Revolving Fund for Affordable Housing.

Operating Grants:

No operating grants are to be provided by the City. Program support will be provided by existing organizations from their established budgets. The not-for-profit community group is providing a minimum of $360,000.00 towards the capital cost of construction and other donations of goods and services are being sought.

Cost Reduction:

By diverting people from the hostel system, emergency shelter costs to the City could be reduced by up to $261,000.00 annually.

Recommendations:

As a result of a request for proposals issued by the City of Toronto for City-owned land at 647-657 Lawrence Avenue West, and with the advice of the Reference Group for the Capital Revolving Fund for Affordable Housing, it is recommended that:

(1) the business case from Out of the Cold and Congregation Darchei Noam for below market rental housing be accepted as an Affordable Housing Demonstration Project;

(2) vacant lands at 647-657 Lawrence Avenue West previously withheld from sale be leased to the not-for-profit corporation to be established jointly by Out of the Cold and Congregation Darchei Noam on a long-term basis at an initial rate of $2.00 per year, subject to terms and conditions which are satisfactory to the Commissioner of Corporate Services and Community and Neighbourhood Services and in a form acceptable to the City Solicitor;

(3) the continued provision of below-market rental units by the not-for-profit group be secured through the review provisions in the land lease agreement with the City;

(4) subject to the final approval of the Commissioner of Community and Neighbourhood Services, that the following funds be provided from the Capital Revolving Fund for Affordable Housing:

(a) a capital grant of $10,000.00 per unit to a maximum of $240,000.00; and

(b) a no-interest, second mortgage of up to $600,000.00, for a maximum of 35 years, to be repaid to the Capital Revolving Fund from net cash flow;

(5) the final amount of the second mortgage from the Capital Revolving Fund for Affordable Housing be adjusted by the Commissioner of Community and Neighbourhood Services to reflect the budget reductions from the use of innovative building technologies, budget refinements, or other cost-saving measures;

(6) in order to reduce the cost of private construction financing, City officials are authorized to disburse the capital grant from the Capital Revolving Fund for Affordable Housing to the not-for-profit corporation as soon as possible after the building permit is issued;

(7) Council agree in principle that all planning, development and building permit fees and charges for 647-657 Lawrence Avenue West, should be waived or forgiven and that:

(a) the Commissioner of Urban Planning and Development Services waive all application fees or costs of giving notice under The Planning Act;

(b) the Commissioner of Economic Development, Culture and Tourism and the Commissioner of Urban Planning and Development Services, in consultation with the City Solicitor, report by September 1999, on the measures required to exempt this development from building permit fees and the payment in lieu of parkland; and

(c) Toronto Hydro be requested to waive or forgo any required connection fee or charge;

(8) the cost of the 22-metre centre median on Lawrence Avenue West required as a condition of previous site plan approval be provided for in the 2000 Works and Emergency Services capital budget; the current estimated construction cost is $8,000.00;

(9) the advancement of the capital grant and second mortgage from the Capital Revolving Fund for Affordable Housing be conditional upon the not-for-profit group obtaining a first mortgage commitment within six months of the zoning by-law for the lands coming in to force; and

(10) City officials be authorized to take such actions as are required to implement these recommendations.

Background:

Selection Process:

In July of 1998 Council considered a report from the Commissioner of Community and Neighbourhood Services to the Council Strategy Committee for People Without Homes. On the basis of the report, Council directed staff to proceed with affordable housing projects that would demonstrate new models of housing and respond to the needs of a range of target groups in Toronto. The adopted strategy was for the City to facilitate the delivery of the targeted housing by community sponsors and the private sector. The City of Toronto would "seed" the projects through the use of City-owned sites, waiving of development fees and limited capital contributions from reserve funds for housing. Actual development and long-term operation would be by the community sponsor or the private sector.

A small City-owned site was identified. It had been approved in principle for 24 apartment units under the Provincially-sponsored social housing program. Just before the building permit was to be issued, the Province terminated the housing program and the development was abandoned.

After consultation with the local councillors a two-stage Request for Proposals was issued to community groups. The Request for Proposals asked that the majority of units be targeted to single parents with children who may be living in emergency or hostel accommodation.

Target Population:

A significant portion of the families in the hostel system are mother-led with one or more children, generally less than 16 years of age. They would likely have been in the shelter and hostel system for a significant period of time, or in danger of ending up in the system because of domestic abuse or economic set backs. Many have cycled through various temporary housing situations, creating a variety of problems, particularly for children, due to the instability of constant relocation. Others may be sharing with friends or relatives in an overcrowded or unsuitable situation. Many are on long social housing waiting lists.

Housing Model:

The needs of these families are largely related to economic conditions and the inability to find suitable housing. They require stability, and in the case of abused women, security. These families need housing which will allow them to work on other issues in their lives and eventually have the option of moving to more independent housing.

While certainly not "hard-to-house", this group nonetheless requires voluntary access to support services, which may be provided on site, and would contribute to the transition to fully independent living.

An appropriate transitional housing model would provide housing suitable for women with children, and offer flexibility or variety in order to serve a range of family sizes and living styles. Units may be entirely self-contained, with common areas, or include shared components such as kitchens, living, recreation or employment space. Operationally, the long-term operating cost of the project must be self-sufficient based on the incomes of the target group, which is usually the shelter component of social assistance benefits.

Support services might include employment counselling and referral, childcare, settlement and literacy or language services, health, nutrition and home management and parenting skills. Some require access to educational facilities. For children, specialized services might include personal counselling and school liaison to deal with issues surrounding instability in their lives, and recreation or socialization opportunities.

Supply of Affordable Rental Housing:

The Mayor's Task Force on Homelessness documented a need for 2,000 new low rent units annually just to keep pace with the new demand. These units are required only to prevent low-income housing needs from worsening. Even with historically high level of production, it would not even address the needs of existing tenants, 23 percent of which have an affordability problem caused be declining incomes coupled with increasing rents and low vacancy rates.

Further the Task Force analyzed the costs for developing new rental housing. The economic monthly rent required to allow the private sector to produce new units is in the range of $1,300.00 to 1,400.00 while the market rents were in the range of $835.00 to $947.00. Consultants to the development industry expect a few hundred new private high-rent units to be started in the next year or two, mostly in downtown or subway locations. This will add to the high-end rental units produced each year in the form of condominium apartments that are rented out. While this adds to the overall supply and reduces the pressure on the vacancy levels, the trickle-down effects for lower income tenants will be modest and long-term.

The inescapably conclusion is that basic development economics prevent the private sector from meeting low-income housing needs.

The significant challenge for the not-for-profit group is to build new housing that can be afforded by the target group i.e., the shelter component of welfare which is currently $554.00 per month for a family of three. This is about 40 percent of the rent level required for the private sector to deliver the same units.

Comments:

At its meeting of April 26, 1999, the Corporate Services Committee received an information report on the results of a request for proposals under the Affordable Housing Demonstration Projects framework adopted by Council in July 1998. This report detailed the two-stage request for proposals selection process that resulted in the preliminary acceptance of the Out of the Cold/Darchei Noam proposal as the working model for the refinement of the financial plan.

Business Case:

Staff and the Reference Group have now reviewed the business case and detailed financial program. At its meeting of May 4, 1999, the Reference Group received a presentation from members of the proposed Board of Directors of the new not-for-profit corporation now being formed specifically for this development. Members of the new Board are drawn from the Out of the Cold and Congregation Darchei Noam.

The Board submitted to the Reference Group a profile of the members of the Board of Directors and the organizational structure adopted for the development phase. (Appendix "B").

A financial presentation was made by the Board. The Board detailed a capital budget - development pro forma - (Appendix "C") and an operating budget with a 10-year financial projection (Appendix "D"). Finally the operational housing model was presented and discussed (outline in Appendix "E") and features of the site plan were outlined (Appendix "F").

Staff and the Reference Group have reviewed the capital and operating budgets. The costs and expenses are reflective of a modest unit proposal and well within industry standards. In addition they are within the range of the costs of development detailed in the background studies for The Mayor's Task Force.

The not-for-profit group is providing 17 of the 24 units at a rent that is only 40 percent of the rent normally required to support this construction. As a result this new below-market rental housing clearly would not happen without government support.

Financial Support:

The items of financial support are as recommended in The Mayor's Task Force. Further the level of assistance from the City proposed for 647-657 Lawrence West is in line with the financial models detailed in The Mayor's Task Force. The following items are listed in the proposed capital budget enclosed with this report:

(i) a long-term land lease at an initial nominal rate of $2.00 per year;

(ii) a capital grant of $10,000.00 per unit to total $240,000.00;

(iii) a second mortgage of up to $25,000.00 per unit to a maximum of $600,000.00; and

(iv) waiving or foregoing of planning, development and building fee revenues.

Initial proposals for the new Development Charges By-law contain a proposal to exempt affordable rental housing from the charge. Waiving or forgoing other fees and charges requires the authorization of Council.

Wise Use of City Resources:

There is a basic choice for the City to make: either provide grants and loans up front from the existing Capital Revolving Fund to generate new affordable rental units or pay annually from on-going budget allocations to provide emergency shelter accommodation. The proposed development at 647-657 Lawrence could house up to 55 people at below-market rents. If this same number of people were to be housed in the emergency shelter system, the yearly costs would be $875,000.00. Under the existing capped cost-sharing formula, $261,000.00 of the savings would accrue to the City of Toronto and $615,000.00 to the Province.

Savings, Taxes and Revenues to Others:

The facilitation of this development by the City of Toronto will generate the following savings or direct revenues for other levels of government and the private sector:

(i) $615,000.00 annual savings to the Province for hostel costs (discussed above);

(ii) $16,673.00 in P.S.T. to the Province (announced rebate of $48,000.00 already discounted);

(iii) $63,218.00 in G.S.T. to the Federal government;

(iv) $3,600.00 in underwriting fees to Canada Mortgage and Housing Corporation;

(v) up to $75,602.00 in mortgage insurance premiums to CMHC;

(vi) $28,357.00 in interest for private construction financing; and

(vii) $105,262.00 annually in virtually risk free mortgage payments to the private sector.

On this basis, the Federal government could be requested to contribute an amount equal to the G.S.T. while CMHC could be asked to waive its fee and to provide direct mortgage financing, as was the norm for over 30 years after World War II.

The above proposals in regards to the G.S.T and direct mortgage lending would implement Recommendations Nos. (81) and (83) of The Mayor's Task Force on Homelessness.

Conclusion:

The proposal outlined in this report is a prototype of what can be done with the resources provided to the Capital Revolving Fund for Affordable Housing. Approval of the business case and financial plan by the City of Toronto will result in the production of new affordable rental housing. It is also cost-effective because the development will provide long-term savings to the City's operating budget by reducing the cost of providing emergency shelter accommodation.

Significant funds and volunteer time are being provided by the community. Further, while ongoing affordability is secured through the terms of the land lease, there are no annual City grants.

Contact Name:

Joanne Campbell, Phone: 392-7885, Fax: 392-0548

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Appendix "A"

Expected Planning, Development and Building Fees

647-657 Lawrence Avenue West

Based Upon a 24 unit Apartment Building

with a Mix of one, two and three Bedrooms

Official Plan Amendment Application paid by previous applicant

Zoning Amendment Application paid by previous applicant

Site Plan Application paid by previous applicant

Cost of giving notice of passing of zoning by-law $200.00 estimated

Amend/extend existing Site Plan Approval $540.00

Building Permit - $12.00 per square metre $31,346.00 estimated

payment in lieu of parkland - 5 percent of land value $16,100.00 to $20,000.00

Development Charges - North York by-law $34,824.00

Sewer and Water - North York by-law $16,488.00

Hydro Connection - $84.00 per unit $2,016.00

Or as amended from time to time by the City of Toronto

The proposed New Development Charges By-law would replace the current former City of North York Development Charges and Sewer and Water Charge listed above with a charge of $67,688.00.

(A copy of Appendices B, C, D and E referred to in the foregoing report was forwarded to all Members of Council with the May 20, 1999, agenda of the Corporate Services Committee and the June 1, 1999, agenda of the Strategic Policies and Priorities Committee and a copy thereof is also on file in the office of the City Clerk.)

7

Housing First Policy for Surplus City-owned Property

(City Council on June 9, 10 and 11, 1999, amended this Clause by adding thereto the following:

"It is further recommended that, as a matter of policy, whenever City land or funding is used to lever below market rents in housing projects, applicants for that housing be drawn from social housing waiting lists or from the shelter system.")

The Strategic Policies and Priorities Committee recommends the adoption of the Recommendations of the Budget Committee embodied in the following communication (May 26, 1999) from the City Clerk:

Recommendation:

The Budget Committee on May 25, 1999, recommended to the Strategic Policies and Priorities Committee, and Council, the adoption of the joint report (May 3, 1999) from the Commissioner of Community and Neighbourhood Services, the Commissioner of Corporate Services, and the Commissioner of Urban Planning and Development Services.

The Budget Committee reports, for the information of the Strategic Policies and Priorities Committee and Council, having requested the Commissioner of Community and Neighbourhood Services to ensure that in every instance where subsidized units are created by the City, the residents of such units must be from the City's existing prioritized waiting list and/or from shelter housing.

Background:

The Budget Committee on May 25, 1999, had before it a communication (May 20, 1999) from the City Clerk advising that the Corporate Services Committee on May 20, 1999, recommended to the Budget Committee, and Council, the adoption of the joint report (May 3, 1999) from the Commissioner of Community and Neighbourhood Services, the Commissioner of Corporate Services and the Commissioner of Urban Planning and Development Services, wherein it is recommended that:

(1) a Housing First policy, as outlined in the Appendix 'A', be adopted;

(2) a target of levering the development of a minimum of 900 affordable housing units on City-owned sites within the next three years be adopted, and staff report back on a quarterly basis on the progress of the Housing First policy;

(3) the Commissioner of Community and Neighbourhood Services, in consultation with the Chief Administrative Officer and the Chief Financial Officer and Treasurer, develop a five-year capital program for housing and report back on the financing of such a program including the use of the Capital Revolving Fund and the method of obtaining future contributions to this Fund; and

(4) the appropriate City officials be authorized to take the steps necessary to give effect to these recommendations.

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(Communication dated May 20, 1999, addressed to the

Budget Committee from the City Clerk)

Recommendation:

The Corporate Services Committee on May 20, 1999, recommended to the Budget Committee, and Council, the adoption of the joint report (May 3, 1999) from the Commissioner of Community and Neighbourhood Services, the Commissioner of Corporate Services, and the Commissioner of Urban Planning and Development Services.

Background:

The Corporate Services Committee at its meeting on May 20, 1999, had before it a joint report (May 3, 1999) from the Commissioner of Community and Neighbourhood Services, the Commissioner of Corporate Services, and the Commissioner of Urban Planning and Development Services, recommending that:

(1) a Housing First policy, as outlined in the Appendix 'A', be adopted;

(2) a target of levering the development of a minimum of 900 affordable housing units on City-owned sites within the next three years be adopted, and staff report back on a quarterly basis on the progress of the Housing First policy;

(3) the Commissioner of Community and Neighbourhood Services, in consultation with the Chief Administrative Officer and the Chief Financial Officer and Treasurer, develop a five-year capital program for housing and report back on the financing of such a program including the use of the Capital Revolving Fund and the method of obtaining future contributions to this Fund; and

(4) the appropriate Civic officials be authorized to take the steps necessary to give effect to these recommendations.

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(Joint report dated May 3, 1999, addressed to the

Corporate Services Committee from the

Commissioner of Community and Neighbourhood Services

the Commissioner of Corporate Services and the

Commissioner of Urban Planning and Development Services)

Purpose:

To implement Recommendation No. (76) of the Mayor's Homelessness Action Task Force by proposing a policy to make suitable surplus City-owned property available for affordable housing purposes.

Financial Implications:

The approval of a Housing First policy will allocate sites for housing purposes and, as set out in the Financial Considerations section in this report, other City initiatives/objectives will be impacted as a result of land being directed on a priority basis to housing. The individual financial implications are to be determined on a site-by-site basis, supported by a business case for the proposed use.

Recommendations:

It is recommended that:

(1) a Housing First policy, as outlined in the Appendix 'A', be adopted;

(2) a target of levering the development of a minimum of 900 affordable housing units on City-owned sites within the next three years be adopted, and staff report back on a quarterly basis on the progress of the Housing First policy;

(3) the Commissioner of Community and Neighbourhood Services, in consultation with the Chief Administrative Officer and the Chief Financial Officer and Treasurer, develop a five-year capital program for housing and report back on the financing of such a program including the use of the Capital Revolving Fund and the method of obtaining future contributions to this Fund; and

(4) the appropriate Civic officials be authorized to take the steps necessary to give effect to these recommendations.

Background:

City Council, at its meeting of July 29, 30 and 31, 1998, approved with minor amendments a report (Clause No. 1 of Report No. 11 of The Corporate Services Committee) entitled "Acquisition and Disposal of Real Property" dealing with various real estate issues, including a process to declare properties surplus to the City's requirements (see flow chart Appendix 'B'). The disposal process provides for Real Estate staff to consult with the City's agencies, boards, commissions and departments on whether a property is required for municipal purposes. The recently established Property Management Committee ('PMC') reviews all requests for the allocation of property and determines whether sites should be recommended for disposal.

At the same meeting, Council also adopted a strategy to encourage the creation of affordable housing and a framework for demonstration projects (Clause No. 7 of Report No. 7 of The Community and Neighbourhood Services Committee). Council agreed in principle to provide surplus City-owned land and buildings for community affordable housing projects, as a first priority. On February 2, 3 and 4, 1999, Council by adoption of Clause No. 13 of Report No. 2 of The Strategic Policies and Priorities Committee established a Capital Revolving Fund for Affordable Housing and provided $10 million dollars largely from the Social Housing Reserve Fund.

Recommendation No. (76) of the report of the Mayor's Homelessness Action Task Force (January, 1999) states: "The City should develop a 'housing first' policy for municipal lands to make suitable sites available for affordable housing..."

Comments:

Rationale for Providing City Land for Housing Affordable Purposes:

Financial pro-formas for new rental construction show that returns are potentially sufficient that such housing could now be built for high-end rent levels. In order to produce housing for low-income households, government incentives are needed to bring down the development costs of such housing. The report of the Mayor's Homelessness Action Task Force suggests that all levels of government have a role to play in providing such incentives.

The Mayor's Task Force identifies the following four tasks for the municipality:

(1) initiating a framework for partnership between the three levels of government and the private and non-profit sector;

(2) making sites available for housing development;

(3) providing limited financial support through a capital fund; and

(4) reducing taxes and charges for affordable housing projects.

It is noted that the provision of land for affordable rental units (i.e., if leased to a community developer at a nominal fee) can reduce development costs by more than 15 percent. It is recommended by the Task Force that all levels of government make suitable government sites available for affordable housing.

There are precedents for the contribution of land for affordable housing purposes. Vancouver, in the early 1990's, provided land on a deferred-return basis for the development of 1,150 rental units. Today, some public-private partnerships, such as those assisted by Canada Mortgage and Housing Corporation's Partnerships Centre, are using land contributed by church groups or service clubs. Recently (March 23, 1999), the Provincial Government announced that it would be making available government-owned land for the development of a minimum of 500 units of affordable rental housing.

Proposed Housing First Policy:

The Appendix provides a proposed Housing First policy for surplus City-owned real property. The intent of the policy is to provide direction for the current process of assessing potentially surplus sites and preparing them for disposition. A variety of possible forms of assistance to housing providers exist. One form would be making City-owned property available, possibly for nominal consideration. In doing so, attention will need to be exercised in order to maintain compliance with the bonusing prohibition in the Municipal Act.

To measure the effectiveness of this policy it is proposed that a target be set for the creation of affordable housing units as a direct result of these actions by the City. A target of 900 units to be approved by Council as a result of Requests for Proposal ('RFP') within the next three years is recommended.

Financial Considerations:

The approval of a Housing First policy will allocate sites for housing purposes. Staff have previously been directed to maximize the revenue from the sale of surplus properties by disposing of those properties which were previously surplus to the City's requirements as well as those properties which were freed up as a result of amalgamation. It was the intention to utilize the revenue generated thereby to fund capital and operating budget shortfalls and utilize those funds for other initiatives. The Facilities and Real Estate staff have previously proposed that a certain portion of the funds generated be allocated to capital maintenance for the City's remaining property portfolio. As a result of the approval of the proposed Housing First policy, other City initiatives/objectives may be impacted due to land being directed on a priority basis to housing. Facilities and Real Estate staff will provide an estimate of market value when the Property Management Committee is considering requests in order that the Committee can make a fully informed decision. However, the level of financial return for a particular property can only be determined once the proposed housing type and tenure is decided and, accordingly, the individual financial implications can only be determined on a site-by-site basis.

In initial response to the Task Force Report's Recommendation No. (77), Council established a Capital Revolving Fund of $10.9 million dollars. Council has not yet dealt with its long-term approach to capital funding of housing. To this end, it is recommended that the Commissioner of Community and Neighbourhood Services, in consultation with the Chief Administrative Officer and the Chief Financial Officer and Treasurer, develop a five-year capital program for housing and report back on the financing of such a program including the use of the Capital Revolving Fund and the method of obtaining future contributions to this Fund.

The Chief Administrative Officer and the Chief Financial Officer and Treasurer were consulted in the preparation of this report and are in agreement with its content and recommendations.

Conclusions:

The Mayor's Homelessness Action Task Force stated that all levels of government, the private sector, and the community-based sector should be combined in a City-led housing partnership. One of the four specific roles identified for the City was to make municipal land available by adopting a "housing first" policy for surplus and potentially surplus sites.

Allocating City-owned land resources to community groups and the private sector for housing will directly produce new units of affordable housing while strongly demonstrating the City's commitment to other levels of government. The Housing First policy report will focus on providing a new land base for the production of affordable housing while protecting the City's operational requirements for land.

Contact Name:

Joanne Campbell, Phone: 392-7885, Fax: 392-0548, Mr. Doug Stewart, Phone: 392-7202, Fax: 392-1880, Ms. Barbara Leonhardt, Phone: 392-8148, Fax: 392-3821.

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Appendix 'A'

Proposed Housing First Policy for City-owned Property

The goal of the City's affordable housing strategy (Clause No. 7 of Report No. 7 of the Community and Neighbourhood Services Committee, adopted by City Council on July 29, 30 and 31, 1998) is to create an environment in which the private sector and community partners will be willing and able to develop affordable housing for people with a range of housing needs that are not currently being met in the market. The Housing First policy supports this strategy by using suitable City-owned property to lever the creation of affordable housing by the private sector and community non-profit groups.

Principle of "Housing First":

The first priority in the decision making process respecting surplus or potentially surplus City-owned real property should be affordable housing development. For the purposes of this policy the definition of affordable housing shall be as determined from time to time by the Council of the new City of Toronto.

Objectives for a Housing First Policy:

The objectives of the proposed Housing First policy are as follows:

(1) to identify and make suitable City-owned sites (land and/or buildings) available to community groups for the provision of long- term affordable housing;

(2) to forgo or defer revenues from such sites, where it can be demonstrated that long-term affordable housing will be created as a result;

(3) to require the inclusion of affordable housing in the development of City sites that have the potential for multiple land uses;

(4) to facilitate the distribution of affordable housing development across all areas of the City, based on community needs and appropriate community consultation; and

(5) to lever participation of senior levels of government, the private sector and non-profit community groups in the provision of affordable housing, for example, where funds from the sale of sites are committed under prior agreement to the Province, the City could request the Province to make those funds available for housing.

Elements of a Housing First Policy:

The following policy will apply to all property owned by the City, including that under the operational jurisdiction of its agencies, boards and commissions.

Sites for Affordable Housing:

(1) Review of Potentially Surplus Property for Affordable Housing Potential:

As properties are identified as being no longer required for their current use, the City's Real Estate staff undertake a circulation to the City's agencies, boards, commissions and departments (ABCDs) and local Councillors to determine if there is any other municipal interest in retaining the property for alternative uses or if the property should be declared surplus to the City's requirements. A determination should also be made as to whether there are any statutory, title, by-law, contractual or other legal provisions constraining the use or disposition of that property. If interest is expressed in retaining the property, the ABCD is requested to complete a business case submission providing preliminary details on the proposed use of the property for consideration and decision by the Property Management Committee (PMC). If there are competing interests, affordable housing shall have first priority, unless in the opinion of the PMC, there is an overriding City interest.

Under the disposal process, the General Manager, Shelter Housing and Support, is notified of potentially surplus properties for her determination of the site's suitability for affordable housing initiatives. Housing staff will coordinate their interest with the Ward Councillors prior to submitting their preliminary business case. The PMC, in considering the General Manager's preliminary business case submission could temporarily withhold the site from disposal. Temporarily withholding a site from sale allows the General Manager time for detailed consultations with City planning staff, other relevant service areas, local Councillors and to issue a Request for Proposals to identify developer interest. As a result of the foregoing process, a final report will be submitted to the PMC, and after PMC consideration of same, a report will be submitted for consideration by Corporate Services Committee and Council on the proposed use and appropriate means of achieving the City's housing objectives. If the housing business case is not satisfactory to the PMC, then consideration will be given to other expressed interests. If no other interest has been expressed, consideration will be given to disposal on the open market.

Sites with affordable housing potential would fall into two categories: those of modest size with potential for the development of a single-purpose affordable housing development; and larger sites with the potential for multiple use development with an affordable housing component.

(2) Process for Single-Purpose Affordable Housing Sites:

Where the General Manager has determined that a site has potential for development of a single-purpose affordable housing project, the report to the PMC will include a business plan to support the use of the site for this purpose. The report will also recommend a process for leasing the site to a community group or sale to a private developer through an open proposal call process.

The target of the policy would be to identify and allocate a minimum of ten single-purpose sites for affordable housing development by the end of 1999. The PMC should have responsibility for ensuring that this target is met.

(3) Process for Multi-Use Affordable Housing Sites:

In the case of larger sites that have potential for mixed use development with an affordable housing component, the General Manager's report to the PMC will describe the potential and recommend a strategy for securing affordable housing benefits through sale of the site. This may include dividing the site into smaller parcels or including specific requirements for affordable housing targets in the sales agreement for the site.

The objective of the policy would be to secure 25 percent of the residential development potential of the site as affordable housing. The PMC should have responsibility for ensuring that this objective is met.

8

1998 Adjustments within Consolidated Grants

(City Council on June 9, 10 and 11, 1999, adopted this Clause, without amendment.)

The Strategic Policies and Priorities Committee recommends the adoption of the following report (April 28, 1999) from the Commissioner of Community and Neighbourhood Services:

Purpose:

To obtain the appropriate approval and authority to release funds, in order to rectify a technical issue resulting as an outcome of the December 15, 1998, Strategic Policies and Priorities Committee.

Funding Sources, Financial Implications and Impact Statement:

The 1998 year-end adjustments, established liabilities from available unexpended funds to accommodate the one-time financial adjustments required in the AIDS Prevention Grants and Arts and Culture Grants Programs. No new funds are required.

Recommendations:

It is recommended that the Strategic Policies and Priorities Committee formally approve the recommendations put forth from the Budget Committee on December 8, 1998, including the following:

(a) available funds in the 1998 consolidated grants budget be used to address one-time financial adjustments required in the AIDS Prevention Grants Program up to $526.4 thousand; and

(b) $288.9 thousand be used to address one-time financial adjustments required in the Arts and Culture Grants Program.

Council Reference/Background/History:

During the course of 1998, two grant service areas were identified as requiring one-time adjustments

to bring the funding periods in-line with the municipal fiscal year. These grants and required adjustments were: $526.5 thousand for the AIDS Prevention grants and $288.9 thousand in the Arts and Culture grants.

Staff identified that available, unexpended grant funds in the 1998 consolidated budget could be used for these purposes.

On November 20, 1998, the Municipal Grants Review Committee recommended the use of available funds in the 1998 consolidated grants budget to address one-time fiscal adjustments for the AIDS Prevention Grants Program and the Arts and Culture Grants Program. Similarly, on December 8, 1998, Budget Committee recommended the same.

When the report was tabled at Strategic Policies and Priorities Committee on December 15, 1998, through an oversight it was received for information and therefore, was not formally recommended to Council for approval. As a result, the problems associated with non-synchronized funding periods and the requirement of pre-committing portions of the grants budget, remain despite an identified solution.

Comments and/or Discussion and/or Justification:

In order to rectify the outcome of the December 15, 1998, Strategic Policies and Priorities Committee, the original Municipal Grants Review Committee and Budget Committee supported recommendations are being re-submitted, for concurrence and approval.

Funding liabilities have been established within the 1998 Consolidated Grants Program budget to accommodate the one-time financial adjustments for the AIDS Prevention Grants and the Arts and Culture Grants. The funding period under the AIDS Prevention Program has been adjusted to reflect this adjustment. Approval of these recommendations will provide the proper authority regarding the release of the funds.

Conclusions:

In order to rectify a purely technical issue, formal approval is being sought again for the Recommendations presented to Strategic Policies and Priorities Committee on December 15, 1998. Approval will provide the proper authority to release the funds, already accounted for as a liability within the 1998 Consolidated Grants Program budget.

Contact Names:

Susan Bury - 392-8351

Chris Brillinger - 392-8608

9

Minor Recreation Grants -

Eligibility Assessment of New Applicants

(City Council on June 9, 10 and 11, 1999, adopted this Clause, without amendment.)

The Strategic Policies and Priorities Committee recommends the adoption of the Recommendation of the Municipal Grants Review Committee embodied in the following communication (May 10, 1999) from the City Clerk:

Recommendation:

The Municipal Grants Review Committee on May 10, 1999, recommended to the Strategic Policies and Priorities Committee the adoption of the attached report (April 28, 1999) from the Commissioner of Economic Development, Culture and Tourism respecting Minor Recreation Grants - Eligibility Assessment of New Applicants, subject to amending Recommendation No. (3) to read as follows:

"(3) Alexandra Park Community Centre secure an incorporated community organization that has submitted a 1999 Minor Recreation application to act as trustee in order that the application/program be reviewed."

The Municipal Grants Review Committee reports, for the information of the Strategic Policies and Priorities Committee, having requested the Commissioner of Community and Neighbourhood Services, in consultation with appropriate Grants staff, to report to the new Grants Sub-Committee of the Policy and Finance Committee on setting allocation priorities beginning in the year 2000 for all high risk groups, i.e., youth, seniors etc.

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(Report dated April 28, 1999, addressed to the

Municipal Grants Review Committee from the

Commissioner of Economic Development, Culture and Tourism)

Purpose:

This report presents a summary of the eligibility assessment of new applicants within the 1999 Minor Recreation Grants Program and seeks direction for one late returning applicant.

Recommendations:

It is recommended that:

(1) Synchro Canada Centre of Excellence be declared ineligible under the Minor Recreation Grants Program Eligibility Criteria;

(2) 519 Church Street Community Centre be declared ineligible under the Minor Recreation Grants Program Eligibility Criteria;

(3) the Municipal Grants Review Committee provide direction with respect to the following options:

(a) Alexandra Park Community Centre application be declared ineligible and the application will not go forward for review; or

(b) Alexandra Park Community Centre secure an incorporated community organization that has submitted a 1999 Minor Recreation application to act as trustee in order that the application/program be reviewed.

Council Reference/Background/History:

At its meeting of September 28, 1998, the Municipal Grants Review Committee received a report titled Recreation Grants Program Review that detailed the program guidelines for an amalgamated Recreation Grants Program. Eligibility criteria for the 1999 grants cycle were revised and clarified to meet standards articulated in the program review. This eligibility criteria for the 1999 Recreation Grants Program Guidelines are attached as Appendix A.

Eligibility criteria are straightforward. Where a new applicant can be deemed ineligible based on their submission, the agency has been notified of their ineligibility for funding and that their application will not go forward to the interview and allocation processes.

Comments and/or Discussion and/or Justification:

A total of 39 new applicants applied to the 1999 Minor Recreation Grants Programs. Based on eligibility criteria contained in Appendix A, staff have determined that 37 of the 39 new applicants are eligible for consideration at this stage of the review. However, these 37 organizations could be deemed ineligible based on additional information at the interview and allocation stages.

Synchro Canada's Centre of Excellence is the elite team of high performance for Canada's top ranked synchro athletes. They obtain year-round leading edge centralized training at the Etobicoke Olympium Pool and receive $743,050.00 in Federal support. Minor Recreation Grants are available to Toronto based organizations that are managed by local boards and provide direct services to Toronto residents. Synchro Canada's Board of Directors is comprised of seven members from across Canada, one of whom lives in Toronto. Minor Recreation Grants support grass root and developmental clubs and organizations that have locally established Boards and memberships. Synchro Canada's application is ineligible for Minor Recreation funding.

The City of Toronto provides Major and Minor Recreation Grants Programs. Policy for the Major and Minor Recreation Grants Programs established two separate programs and criteria that made each organization eligible in only one category. This allows both large and smaller groups to be funded. The policy establishing the Major Recreation Category is attached as Appendix B. It should be noted that the minimum level of funding for Major Recreation Grants was increased from $10,000.00 to $12,000.00 some years ago. The 519 Church Street Community Centre is eligible for and receives an annual Major Recreation Grant of $23,047.00; therefore, their application for Minor Recreation funding is ineligible.

There are two other Minor Recreation Grant applications from Major Recreation Grant recipients; however, St. Alban's Boys' and Girls' Club is applying as trustee for the Jane/Finch Boys' and Girls' Club, and Scadding Court is applying as trustee for the Lion Park of the Toronto Lion Dance Festival.

Staff are seeking direction on a late grant application received from Alexandra Park Community Centre. For 1998, Alexandra Park Community Centre received $11,000.00 from the Minor Recreation Grants Program and $14,447.00 from the Community Resources Fund (CRF). The CRF conditions stated that "future funding is conditional on demonstrated improvements in the agency's administrative and financial management of systems". Alexandra Park Community Centre was mailed a Minor Recreation Grant application in January and requested additional applications on two occasions in 1999. Deadline for filing an application was 4 p.m. on March 15, 1999. On April 1, 1999, an incomplete Minor Recreation Grant application was received. Their Board Minutes of January 27, 1999, show approval of the general submission of a grant to the City of Toronto.

The Minor Recreation funding request is for a summer day camp that operates in a high needs area for eight weeks in July and August and is directed to youth program materials, outings, special events, and some administration costs. It would appear that the agency has not improved its administrative management, nor filled out or presented accurate and complete information in the grants application in a timely manner. Policy states that late applications will not be accepted or reviewed. To support one late application over another may set a precedent, as many organizations have requested applications after the deadline and have been denied. It may be possible to award some grant funds for the camp, if the Board of Directors of Alexandra Park Community Centre identifies and secures a not-for-profit incorporated community organization that has submitted a grant application to the City for 1999 funding and becomes a trustee for the administrative and financial management of the summer camp.

Conclusions:

This report summarizes the results of the eligibility assessments of new applicants under the Minor Recreation Grants Program. Pending approval of the 1999 Consolidated Grants Budget, it is anticipated that there will be limited funding available for all applicants in the Minor Recreation Grants.

Contact Name:

Cathi Forbes, Acting Recreation Grants Manager ; Tel: 395-6192.

(A copy of each of the Appendices referred to in the foregoing report was forwarded to all Members of Council with the agenda of the Municipal Grants Review Committee for its meeting on May 10, 1999, and the agenda of the Strategic Policies and Priorities Committee and copies thereof are also on file in the office of the City Clerk).

10

Toronto Heritage Fund Grants Program

(City Council on June 9, 10 and 11, 1999, adopted this Clause, without amendment.)

The Strategic Policies and Priorities Committee recommends the adoption of the Recommendation of the Municipal Grants Review Committee embodied in the following communication (May 10, 1999) from the City Clerk:

Recommendation:

The Municipal Grants Review Committee on May 10, 1999, recommended to the Strategic Policies and Priorities Committee the adoption of the attached report (April 30, 1999) from the Managing Director, Toronto Historical Board, respecting the Toronto Heritage Fund Grants Program.

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(Report dated April 30, 1999, addressed to the

Municipal Grants Review Committee from the

Managing Director, Toronto Historical Board)

Purpose:

This report recommends that the Municipal Grants Review Committee designate $100,000.00 from the 1998 Consolidated Grants Budget underexpenditures to provide a one-time top up to the Toronto Heritage Fund Grants Program.

Funding Sources, Financial Implications and Impact Statement:

During 1998, Heritage Toronto identified to the Municipal Grants Review Committee the need for a one time $100,000.00 top up to the reserve fund. This would provide for increased interest earnings which in turn would be made available to the anticipated 15 percent increase of designated properties eligible for grants.

Through the 1998 account closings underexpenditures of approximately $3.186 million were identified within the Consolidated Grants Program. A liability of $100,000.00 was created within the 1998 underexpenditures to provide for the Toronto Heritage Fund adjustment, subject to Heritage Toronto putting forward a report to the Municipal Grants Review Committee formerly requesting and justifying the increase.

Funds have been allocated from the Consolidated Grants Budget as approved by Council (subject to Council approval).

Recommendation:

It is recommended that to successfully provide grant funding from the Toronto Heritage Fund, Council top up the base fund by $100,000.00.

Council Reference/Background/History:

At its meeting of May 4, 1998, the Municipal Grants Review Committee requested that Heritage Toronto consult with stakeholders about expanding the Toronto Heritage Fund grant program to cover the entire City of Toronto. Heritage Toronto reported to the November 20, 1998, Municipal Grants Review Committee. The Committee adopted the following Recommendations Nos. (1) to (5) of the report:

(1) that the Heritage Toronto Fund grants program be expanded to cover the entire City of Toronto;

(2) that Heritage Toronto or its successor continue to administer and manage the Toronto Heritage Fund grant program on behalf of the City of Toronto;

(3) that Heritage Toronto or its successor should report back to Council in one year with a review of the program and an appropriate long-term strategy for managing the Fund;

(4) that applications be reviewed on a competition basis; and

(5) that a representative of each former municipality be invited to participate in a cross-jurisdictional review committee.

The Municipal Review Grants Committee deferred consideration of Recommendation No. (6):

"(6) That to successfully operate the expanded program, the Board requests Council to include an immediate contribution of $100,000.00 to the fund.,"

pending receipt of a detailed report from the Commissioner of Community and Neighbourhood Services which establishes the priority services areas for the 1999 Municipal Grants Program and Heritage Toronto formally requesting the funds. City Council adopted these recommendations at its December 16 and 17, 1998, meeting (Clause No. 9, contained in Report No. 26 of The Strategic Policies and Priorities Committee, headed " The Toronto heritage Fund Grants Program").

Comments and /or Discussion and /or Justification:

Heritage Toronto has reviewed and recommended grants under the Toronto Heritage Fund grants program on behalf of the former City of Toronto for over 12 years. The Toronto Heritage Fund grant program allows the municipality to aid owners of properties designated under the Ontario Heritage Act with approved restoration and conservation projects.

At its meeting of December 16, 1998, City Council adopted the recommendation to expand the Toronto Heritage Fund Grant Program to cover the entire City of Toronto. To successfully operate the expanded program, Heritage Toronto requires additional monies to augment the base fund to increase the amount of interest available to assist in the expanded services for grants. Based on the number of additional designated properties as a result of amalgamation that are now eligible for restoration grants, a 15 percent increase, Heritage Toronto requests that an additional $100,000.00 be allocated to the support the program.

Conclusion:

While the administration and management of the Toronto Heritage Fund grant program, remains substantially the same, and that the recently approved Heritage Services governance structure has yet to be implemented, the request for the $100,000.00 to the base fund assists in the amount of interest available for the expanded program and ensures its continued future.

Contact Name:

Marisa Williams, Preservation Officer, Architecture, Heritage Toronto,

Tel: 392-6827 Extension 240.

11

Graffiti Transformation Program -

1999 Recommended Allocations

(City Council on June 9, 10 and 11, 1999, amended this Clause by adding thereto the following:

"It is further recommended that the Commissioner of Urban Planning and Development Services be requested to submit a report to the Planning and Transportation Committee on the feasibility of expanding the Graffiti Transformation Program to include some forms of vandalism.")

The Strategic Policies and Priorities Committee recommends the adoption of the Recommendation of the Municipal Grants Review Committee embodied in the following communication (May 10, 1999) from the City Clerk.

The Strategic Policies and Priorities Committee reports, for the information of Council, having requested the Chief Administrative Officer to submit a report directly to Council for its meeting scheduled to be held on June 9, 1999, on how this venture can be monitored to ensure that the Graffiti Transportation Project is actually being undertaken and the grant is being properly utilized.

The Strategic Policies and Priorities Committee submits the following communication (May 10, 1999) from the City Clerk:

Recommendation:

The Municipal Grants Review Committee on May 10, 1999, recommended to the Strategic Policies and Priorities Committee the adoption of the attached report (April 22, 1999) from the Commissioner of Urban Planning and Development Services respecting the Graffiti Transformation Program - 1999 Recommended Allocations, subject to amending the Appendix A referred to in Recommendation No. (1) to provide that the grant allocation to "Homo Air Ectus" be increased by $1,958.00 for a total 1999 allocation of $26,000.00.

Mr. Mark Dias, "Homo Air Ectus", appeared before the Municipal Grants Review Committee to appeal the recommendation in the report of the Commissioner of Urban Planning and Development Services.

(Report dated April 22, 1999, addressed to the

Municipal Grants Review Committee from the

Commissioner of Urban Planning and Development Services)

Purpose:

To recommend grants to 14 organizations for the removal of graffiti and the transformation of vandalized surfaces into murals. The decision to initiate the Graffiti Transformation Program arose from presentations to the Neighbourhoods Committee of the former City of Toronto regarding the deterioration of communities caused in part by the proliferation of graffiti. As a reinvestment in both the liveability of urban neighbourhoods and the youth in those communities, agencies train and employ young people to carry out the work.

Funding Sources, Financial Implications and Impact Statement:

Funds for this grant program are available in the Consolidated Grants budget. There are no other financial implications.

Recommendations:

It is recommended that:

(1) grants be provided to community groups to engage in Graffiti Transformation as shown in Appendix A; such Grants are deemed to be in the interest of the Municipality;

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

(3) early in 2000, the Commissioner of Urban Planning and Development Services report on the evaluation of the Graffiti Transformation Program in 1999 with particular emphasis on the first year progress of new groups in former municipalities where the program was not previously available.

Council Reference/Background/History:

The Council of the former City of Toronto established a program for the removal of graffiti and the transformation of the defaced sites into murals in 1996. The decision to initiate the Graffiti Transformation Program arose from presentations to the Neighbourhoods Committee of the former City of Toronto regarding the deterioration of communities caused in part by the proliferation of graffiti. Staff of the Planning Division were asked to investigate and comment on a presentation on the subject by the Christie Ossington Neighbourhood Centre. Subsequently, the Graffiti Transformation Program was established as a grant to community groups.

Participating agencies create training and business experience for youth in the field of graffiti removal and outdoor art. In this way an opportunity was created to ameliorate neighbourhood deterioration and, since much of the graffiti is perpetrated by youth, to involve their peers in learning about the adverse effects of the vandalism in retail and residential neighbourhoods as a proactive intervention. In the process, valuable skills are learned in remediation methods, business practice and community relations.

A Community Economic Development (C.E.D.) model was the chosen approach. This approach, described in detail in Appendix C, involves the hiring of youth by local organizations who would provide training and development for them while carrying out the service. This will be the fourth year of operation within the boundaries of the former City of Toronto and the first year in other former Municipalities of the new City.

Comments:

A community suffers when areas previously enjoyed by everyone become the "property" of a group, making others uncomfortable about using the space. People will stay away when the "tagging" of an area, (graffiti labels and initials applied on public or private property) becomes more common than proper use of the public space. This discomfort, by keeping people away, adds to the sense of danger and can make an area even more unsafe, since there is none of the informal surveillance provided by those relaxing on park benches or moving through the laneway after parking their car. This in turn encourages more graffiti, creating a vicious circle.

In 1996, the former City of Toronto Council established a program for the removal of graffiti and the transformation of the defaced sites into murals. The program was designed to enhance the affected neighbourhoods. The work could have been carried out in a variety of ways such as contracts with private muralists, by way of public competitions or by adult art clubs.

At the time, the Department also had a mandate to work on youth unemployment as well as neighbourhood planning, improvement and revitalization issues. A Community Economic Development (C.E.D.) model involving the hiring of youth by local organizations who would provide training and development for them while carrying out the service was designed and proposals were sought from community groups.

A description of C.E.D models is included in Appendix C.

An interdepartmental team including staff from Urban Planning and Development Services, Parks and Recreation, and Works and Emergency Services, as well as the Toronto Arts Council are responsible for reviewing proposals and recommending allocations.

In 1996, five groups were awarded a total of $179,589.00. Those groups produced 18 murals and cleaned several hundred smaller graffiti sites. The groups also leveraged a further $124,959.00 from a combination of sales and other funders as well as $10,683.00 in the form of free time, talent, materials and small donations. This total of $315,231.00 in combined resources resulted in 80 youth directly received $159,861.00.

Following the success of the 1996 Graffiti Transformation Program, the former City repeated the program in 1997 allocating $286,000.00 to 12 groups. The program resulted in 68 murals and the cleaning of over four hundred units of graffiti where murals were not appropriate or desired. Other donations of time, materials and cash, as well as sales of the service by the youth, increased the value of the 1997 program to $394,956.61, an increase of 38 percent over the City grants envelope. One hundred and eighteen (118) youth were employed in the program and paid $205,494.88 in wages and stipends.

In 1998, in accordance with granting policy, the program budget and availability remained unchanged from pre-amalgamation guidelines. The twelve groups again participated, producing a further 51 murals, cleaning 30 sites and 625 tags from small street installations. In addition, one group now offers backlane addresses for emergency identification and several are receiving commissions for private works of art. In the process they created 117 jobs and 24 casual work opportunities for youth. Well over $72,000.00 was raised by these groups from donations, sales and other funders.

Over the three-year life of the program, over 1,000 "tags" have been removed, 30 sites have been cleaned and 137 murals have been created. Along the way, nearly 350 youth have received paying work as well as training in the technical aspects of graffiti removal, outdoor art and business skills.

In addition to the interest demonstrated by donations and sales, the youth experienced many indications of approval from their respective communities - kind words, assistance, applause - as well as being drawn into the fabric of the community in a way many may not have previously experienced.

The 1999 Program:

This year, requests totalled $372,223.00 as compared to a budget of $284,300.00. Reductions have been discussed with the review committee which attempted to consider factors such as the proponent's experience and ability to raise other amounts, age of and disadvantages faced by the youth resulting in higher supervision requirements and requests too small to withstand cuts without resulting in an unrealistic proposal. The recommended allocations are shown in Appendix A, while project descriptions are shown in Appendix B.

Council policy respecting grants for 1999 required all programs to be made available City-wide for the first time, allowing the program to include proposals from new groups. In anticipation of limited funds to expand availability to a much larger City, staff provided all Councillors with materials on the program and requested their assistance in identifying groups in their constituencies with an interest in the issue and a capacity to deliver the program. An introductory information session was held in the fall and follow-up conversations continued throughout the winter and spring with attendees and others who expressed interest. A final session was held in spring for those who were still interested and, as a result, 14 proposals were received as described in Appendix B.

Three of those proposals are from communities in former municipalities where the program was previously unavailable and discussions are underway with a group in a fourth for inclusion in next year's program. The budget process has resulted in an additional $34,300.00 being made available for this purpose and the new groups are to be congratulated for their co-operation in recognizing the limited resources available.

Evaluation of this year's program will be reported prior to recommendations for 2000. It is expected that for purposes of geographic distribution, the City will be viewed from the framework of this Department's Planning Districts that year.

Conclusions:

In order to continue the Graffiti Transformation Program in 1999, grants should be awarded as described in Appendix A. Staff will report prior to the next budget cycle with respect to further expanding the program availability as well as this year's results. This report will be made to the Planning and Transportation Committee.

Contact Name:

Larry King, Planner, Tel: 392-0622.

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Appendix A: 1999 Recommended Allocations

Graffiti Transformation Project

Applicant 1998 Allocation 1999 Request 1999 Recommended

Cecil Community Centre $22,000.00 $29,033.00 $22,000.00

Christie Ossington $25,000.00 $41,320.00 $23,043.00

Neighbourhood Centre

Community Business $15,000.00 $18,000.00 $15,000.00

Resource Centre

Community Centre 55 $21,000.00 $31,000.00 $21,000.00

Davenport Perth

Neighbourhood Centre $22,000.00 $22,000.00 $22,000.00

Dixon Hall $23,000.00 $21,978.00 $21,000.00

Neighbourhood Centre

Pape Adolescent $25,000.00 $34,626.00 $23,043.00

Resource Centre

Native Child & Family $34,000.00 $34,500.00 $28,043.00

Services of Toronto

"Homo Air Ectus" $26,000.00 $26,000.00 $24,042.00

St. Christopher House $10,000.00 $16,433.00 $10,000.00

Scadding Court Community $ 6,000.00 $6,000.00 $6,000.00

Centre

LAMP N/A $25,756.00 $23,043.00

Arts York N/A $30,000.00 $23,043.00

West Scarborough N/A $35,577.00 $23,043.00

Community Centre

Totals $250,000.00 $372,223.00 $284,300.00

Appendix B: Description of Applicants Proposals

Graffiti Transformation Project

Agency Grant Amount

(1) 1998

(2) Request

(3) 1999

Notes
Cecil Community Centre

and Harbourfront Community Centre. (joint project )

(1) $22,000.00

(2) $29,033.00

(3) $22,000.00

One co-ordinator ( an older youth) + 10 youth. Will link youth to their Employment Resource Centre Trainees are "high need at risk" youth.

$3,300.00 inkind donated 2-5 murals.

Christie Ossington Neighbourhood Centre

"United Neighbourhood Artists"

(1) $25,000.00

(2) $41,320.00

(3) $23,043.00

Using two experienced youth from previous years to train six new youth. This year will include more emphasis on skills and business training.
Community Business Resource Centre and the Parkdale Village Business Improvement Area with various Parkdale groups.

(1) $15,000.00

(2) $18,000.00

(3) $15,000.00

Up to 12 youth jobs. Technical training in removal and murals, career development seminars. Partnership with local business association, school, recreation centre and others. Eight major sites, two murals and maintenance of previous work. Target is $18,000.00 in corporate and community contributions.
Community Centre 55

(1) $21,600.00

(2) $31,000.00

(3) $21,000.00

Eight youth. Primarily removal and touch up with cart. One-two graffiti artists to paint 2 murals.

$4,000.00 expected from sales and donations.

Davenport Perth Neighbourhood Centre "Mural Express!"

(1) $22,000.00

(2) $22,000.00

(3) $22,000.00

Eight youth aged 16-20. Some are returning from last year and plan is to move to a more business operation. Six sites, split between public, private and community non profit. Anticipating $4,000.00 in sales/donations and $3,000.00 in funds from other sources.
Dixon Hall Neighbourhood Centre

"Fresh Coat - Regent Park Youth Painters"

(1) $23,000.00

(2) $21,978.00

(3) $21,000.00

Four-six youth, 18-24. Three experienced from last year to peer train. Business training also provided. Attempt at partial cost recovery and move to a business format. Nine-twelve sites to be looked at.
Area 4,1999" Pape Adolescent Resource Centre (PARC) with Eastview Neighbourhood Community Centre

(1) $25,000.00

(2) $34,626.00

(3) $23,043.00

Two older youth co-ordinators.

16 youth "in care" age 15-19 (5-8 murals).

Some sites have been offered already by owners.

Plan to increase entrepreneurial revenues and seek funding to continue in fall.

7th Generation Image Makers

Native Child & Family Services of Toronto

(1) $34,000.00

(2) $34,500.00

(3) $28,043.00

Native street youth - "uniquely Canadian Images" re: Tourist interest.

Successful business spin-offs (commissioned art, business cards etc.) last year. Sites identified.

Hope to work with Yonge Street Revitalization Project, increase self-employment training. 16 youth to benefit.

"Homo Air Ectus"

(1) $26,000.00

(2) $26,000.00

(3) $24,042.00

As with Murality, this organization has created a successful venture over two years. They will employ youth from that period as two team leaders (part time) working with 16 part time student artists.Already large list of sites and commitments.
St. Christopher House

(1) $10,000.00

(2) $16,433.00

(3) $10,000.00

Partners with Midtown Kiwanis Boys and Girls Club. Ten youth age 13-15. Woman abuse as a result of negative images part of educational component. One youth age 20-25 as team leader.

Agencies donating $8,848.00 in administration.

Lakeshore Area Multi Service Project (1) n/a

(2) $25,756.00

(3) $23,043.00

First year proposal in South Etobicoke. Growth of graffiti and mural workshops with local artists and youth last fall generated interest in the program.Partnerships with local business etc. Plan to execute four murals this year with six youth.
West Scarborough Community Centre (1) n/a

(2) $35,577.00

(3) $23,043.00

First year collaboration with seven community partners. Four youth, expect $5,200.00 in other contributions. Broad training in life skills and conflict resolution as well as technical skills. No projections yet on volume of work.
Arts York (1) n/a

(2) $30,000.00

(3) $23,043.00

A first year collaboration with Arts York as sponsor. Four youth groups covering most of former York will clean and provide two murals each. Total budget is $54,420.00 with expected Federal and community contributions making up the rest. If insufficient other funds, will scale back to focus on one area initially. Twenty youth to be involved.
Scadding Court Community Centre, "Urban Artists"

(1) $6,000.00

(2) $6,000.00

(3) $6,000.00

Target Alexandra Park and Chinatown

Second year focus large murals, technical and business training will progress to using the summer experience to find part time contracts over the winter for eight youth and more focus on privately owned properties.

Total 1998

Total Requests

Total Recommended

$ 250,000.00

$ 372,223.00

$ 284,300.00

Projected numbers of youth hired and murals created are based on requested amounts. The lower recommended budgets will impact on these projections and on any anticipated revenue.

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Appendix C

Community Economic Development

The establishment of local organizations to solve local problems has a long history in Toronto. More recently, strategies to include economic components in community-based endeavours have received support from the Federal, Provincial and Municipal Governments. The City of Toronto first became involved in such efforts in 1980 with a grant program providing funds for feasibility studies and start-up costs. Eventually, the City supported the development of the Community Business Resource Centre to provide development and training and the Greater Toronto Community Loan Fund to provide capital. This Department currently works closely with these organizations on a variety of programs to encourage and support self-employment, community businesses and retail strip revitalization programs.

In Community Economic Development terms, there are two basic models that are used depending on the issue being addressed, the financial scenario and the outcomes that are sought. Community-based training models generally address issues of preparation for the work force and use business opportunities as a vehicle for this effort. The employees generally work in the business until the required training occurs or their term (as determined by program guidelines) is complete. Assistance in a job search is then offered. Skills for Change and Trinity Square Enterprises are examples of this model.

Community Businesses operate on a model that emphasizes the provision of jobs in a more traditional sense. Although training occurs, the focus is on enabling the employee or member to perform well enough to stay with the business as opposed to finding employment elsewhere. Where particular employment issues are evident (for example, medical concerns, single parenthood, the need to continue formal education). Accommodations are built into the operational model to mitigate the impact of the employment barrier while allowing the person to still earn money from productive employment. AWAY Express (a ten-year old courier business using public transit) and Prezents of Mind (a craft store) are examples of Community Businesses.

Both types of organizations are incorporated as non-profits (corporations without share capital) enabling them to partner with both public and private organizations as well as voluntary and private sector foundations. There is frequently overlap in the models and few are purely training or business oriented. Similarly, the best and most durable have a diverse financial base usually including formal and informal arrangements with the public, private and voluntary sectors in addition to revenue from sales.

A key component in most successful models is the ongoing involvement of public sector funders. Traditionally, Federal and Provincial agencies have played significant roles in this regard due to their employment and economic development mandates. However there is an argument to be made for Municipal involvement both from the perspective of defining issues and approaches locally and based on the view that cities suffer the most direct and evident results of unemployment, and in this instance, the social, economic and visual impact of graffiti.

It appears, after reviewing the experience of the Christie Ossington Community Centre with their staff, that a community-based training model is appropriate at this point. The possibility of conversion to some form of community business in the future may be worth evaluating after an initial pilot.

(City Council on June 9, 10 and 11, 1999, had before it, during consideration of the foregoing Clause, the following report (June 8, 1999) from the Chief Administrative Officer:

Purpose:

To describe the ways in which the Graffiti Transformation Grant Program measures and evaluates results and outcomes.

Funding Sources/Financial Implications/Impact Statement:

N/A

Recommendations:

That this report be received for information.

Council Reference/Background/History:

At its meeting of June 1, 1999, the Strategic Policies and Priorities Committee requested the Chief Administrative Officer to submit a report directly to Council for its meeting scheduled to be held on June 9, 1999, on how this venture can be monitored to ensure that the Graffiti Transformation Project is actually being undertaken and the grant is being properly utilized.

Comments and/or Discussion and/or Justification:

In 1996, the former City of Toronto Council established a program for the removal of graffiti and the transformation of the defaced sites into murals. The program was designed to remove the graffiti while enhancing the affected neighbourhoods. At the time, the Department also had a mandate to work on youth unemployment as well as neighbourhood planning, improvement and revitalization issues. A Community Economic Development (C.E.D.) model involving the hiring of youth by local organizations who would provide training and development for them while carrying out the service was designed and proposals were sought from community groups.

Council established the following evaluative criteria: community enhancement outcomes, financial and employment outcomes, business outcomes and training outcomes. In the second year, the potential markets for the artwork were also considered as a means of increasing sales revenues that could be re-invested in the program at the delivery agency level.

In order to keep the program outcome oriented and manageable, it is administered in a somewhat different manner than other programs. Expressions of interest are followed up by meeting with the prospective agency to ensure that they fully understand the City's expectations for the program and have the capacity and experience to work with youth around content (cleaning of sites, the art component ) and process ( training, community relations, sales and marketing etc. ) as well as administration. Groups will often screen themselves out at this stage.

Having established a " roster " of groups that have demonstrated this capacity, they are then invited to submit proposals detailing a workplan and numbers of youth to be employed. These are reviewed by a committee including staff from Urban Planning and Development Services, Works and Emergency Services ( By-law Enforcement ), Economic Development ( Parks and Recreation) and the Toronto Arts Council. In each of the four years of operation, all proposals have been funded as a result of this information and pre-screening process. This year, one group that had received funding in the first three years chose not to participate because it feels it has achieved its goals for the neighbourhood.

When Council approves allocations, a meeting is held with all participating groups to ensure that objectives are clearly understood and to establish a network for communication and mutual assistance. A similar " debriefing " is held at the end of the summer. Throughout the summer City staff maintain communications with the groups and carry out site visits as well as attend periodic mural unveilings as a means of staying in touch with the work.

This has resulted in a very strong commitment to teamwork, partnership and sharing of experience over the years. For example, staff of Community Centre 55 and Homo Air Ectus among others, have played key roles in assisting new groups while an early youth participant has been hired to co-ordinate the program of a first year group in former Scarborough.

Finally, each group is required to provide a report annually addressing the specific objectives of the program. This information is then used by Urban Planning and Development Services to prepare an evaluation for Council. An example of the summary information used in evaluating the program format is included as Appendix A. The report before you today summarizes the cumulative program results over three years.

In past years this evaluation was presented to Council in the late fall and prior to the allocations report for the following year. As a result of administrative procedures during the first year of amalgamation, evaluative information from 1998 is included in the allocations report for 1999 which is before you today. Council can expect Urban Planning and Development Services to return to this reporting format later this year.

Conclusions:

The Graffiti Transformation Program is monitored and evaluated annually against the outcomes it is designed to achieve. Groups wishing to participate are first screened for their capacity to effectively implement the program. They are then required to submit proposed workplans and attend a preliminary planning and networking session. Throughout the summer, City staff monitor progress through site visits, phone calls and attendance at unveilings. This is followed by a debriefing session and a report to staff in the fall. All of these elements are combined in a program summary chart annually. ( See Appendix A ) These charts are then used in an evaluation report to Council that summarizes both the results for the current year and cumulative results over the life of the program.

It is my view that the current evaluation methods are sufficient to ensure that the program is undertaken and that the grants are properly used.

Contact Name:

Larry King - 392-0622)

Insert Table/Map No. 1

Appendix A - Summary of 1997 Graffiti Transformation Program

Insert Table/Map No. 2

Appendix A Summary of 1997 Graffiti Transformation Program

12

Community Services Grants Program -

Eligibility Assessment of New Applicants

(City Council on June 9, 10 and 11, 1999, adopted this Clause, without amendment.)

The Strategic Policies and Priorities Committee recommends the adoption of the Recommendation of the Municipal Grants Review Committee embodied in the following communication (May 10, 1999) from the City Clerk:

Recommendation:

The Municipal Grants Review Committee on May 10, 1999, recommended to the Strategic Policies and Priorities Committee the adoption of the attached report (May 4, 1999) from the Commissioner of Community and Neighbourhood Services respecting the Community Services Grants Program - Eligibility Assessment of New Applicants, with the exception of the recommendations pertaining to the following applicants, referred to in Appendix "A".

- Association for Caribbean Advancement;

- Bloor Jewish Community Centre;

- Cypriot Community of Toronto;

- Down Syndrome Association of Scarborough; and

- North York Safety Village.

The Municipal Grants Review Committee reports, for the information of the Strategic Policies and Priorities Committee, having:

(1) requested the Commissioner of Community and Neighbourhood Services to consult with the Chief Executive Officer of the Toronto Housing Company Inc. on the feasibility of providing alternative support to the 679 Tenant Association (Item No. 1 in Appendix "A") and report thereon to the Community Services Committee;

(2) referred back to the Commissioner of Community and Neighbourhood Services the grant request from the Bloor Jewish Community Centre (Item No. 6 in Appendix "A") for further review and report thereon to the Community Services Committee;

(3) directed that the appropriate Community Development Officers be requested to assist the following applicants listed in Appendix "A" in looking for other potential funders and to provide advice on the type of organizational development that the applicant could undertake to assist them in becoming eligible for funding under the Community Services Grants Program, or other funding programs for which they may be eligible:

- Association for Caribbean Advancement (Item No. 2);

- Cypriot Community of Toronto (Item No. 15); and

- Down Syndrome Association of Scarborough (Item No. 17); and in the case of the Association to review its service goals and linkages to other service providers;

(4) requested the Commissioner of Community and Neighbourhood Services to report on the feasibility of providing funding to the three proposed Children's Safety Villages in the City of Toronto (North York Safety Village Item No. 33) through either the Community Services Grants Program, or from other sources; and further that the appropriate staff meet with the three Children's Safety Village organizations to provide advice regarding the application process and other potential funding sources;

(5) directed that the appropriate Community Development Officers be requested to assist the following applicants in looking for other potential funders, and to provide advice on the type of organizational development the applicant could undertake:

- Refugees and Immigrants Information Centre Toronto Inc. (Item No. 38); and

- Somali Canadian Community Advancement Centre (Item No. 44);

(6) requested the Commissioner of Community and Neighbourhood Services and the Medical Officer of Health to submit a joint report to both the Community Services Committee and the Board of Health on the history of all food and gardening related grants programs, such report to include the number of community gardens supported, the previous level of support provided, and the level the City could continue to support; and

(7) received the communication from The Barbados St. Michael Alumni (Toronto).

Background:

The Municipal Grants Review Committee on May 10, 1999, had before it the following report and communication:

- (May 4, 1999) from the Commissioner of Community and Neighbourhood Services providing a summary of the eligibility assessment of the 55 new applicants under the 1999 Community Services Grants Program; and outlining recommendations in regard thereto; and

- (May 10, 1999) from Ms. Cyriline Taylor, The Barbados St. Michael Alumni (Toronto), appealing the recommendations contained in the report of the Commissioner of Community and Neighbourhood Services.

The following persons appeared before the Municipal Grants Review Committee to appeal the recommendation contained in the aforementioned report of the Commissioner of Community and Neighbourhood Services:

- Ms. Sandy Nimmo, 679 Tenants Association;

- Ms. Harriet Wichin, Bloor Jewish Community Centre;

- Mr. Abdirahaman Muse, Somali Canadian Community Advancement Centre; and submitted a brief in regard thereto;

- Mr. Stanley Joseph, Refugee and Immigrants Information Centre Toronto Inc.;

- Mr. Eric Onisiforou, President, Cypriot Community of Toronto;

- Ms. Chellam Siva, Blue Ribbon Child Care Society;

- Mr. Ted Torrance, Vice-President, North York Safety Village;

- Mr. Calvin Vickers, Ms. Charmaine Lym and Mr. Gerry Leonard, Association for Caribbean Advancement; and

- Ms. Margaret D'Souza, Down Syndrome Association of Scarborough; and submitted a brief in regard thereto.

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(Report dated May 4, 1999, addressed to the

Municipal Grants Review Committee from the

Commissioner of Community and Neighbourhood Services)

Purpose:

This report presents a summary of the eligibility assessment of the 55 new applicants under the 1999 Community Services Grant Program (C.S.G.P.).

Funding Sources, Financial Implications and Impact Statement:

Not applicable.

Recommendations:

It is recommended that:

(1) the 27 new applicants determined to be eligible at this stage of the assessment process proceed to the next level of assessment;

(2) the 22 new applicants determined to be ineligible at this stage of the assessment be advised that they are not eligible for support under the 1999 Community Services Grants Program;

(3) the six remaining new applicants be referred for consideration under other City grants programs; and

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

Council Reference/Background/History:

In September 1998, the Municipal Grants Review Committee received a report, titled "Community Service Grants Program Review," that detailed the program guidelines for an amalgamated community service/general grants program. Eligibility criteria for the 1999 grants cycle were revised and clarified, consistent with the directions articulated in the program review.

The program criteria address agency mandate and location, structure and governance, financial management and accountability, operations and staffing, program efficiency, and the agency's relationship with its community. In order to make the program more accessible to smaller organizations, the eligibility criteria for applicants requesting $10,000.00 or below are less stringent

than for requests of over $10,000.00. The eligibility criteria for the Community Services Grants Program are contained in Appendix "B".

A number of the eligibility criteria are straightforward and can be clearly determined from an agency's written submission. Where a new applicant has been deemed ineligible based on their written submission, the agency has been informed of the determination and the reasons for it.

Comments and/or Discussion and/or Justification:

A total of 55 new applicants submitted written applications under the 1999 Community Services Grants Program. Based on the eligibility criteria contained in Appendix "B", staff have determined that 27 new applicants are eligible for further consideration at this stage of the review process. The final determination of eligibility for those 27 applicants will be made based on the written submission and an assessment interview with Grants Staff. A further 22 new applicants have been determined to be ineligible for funding because the program, agency, or both, do not meet the C.S.G.P. criteria. The remaining six new applicants are not eligible under the C.S.G.P., but may be eligible under other City of Toronto grants programs. These applications have been forwarded to the appropriate City staff for review.

Agencies that are ineligible because the program activity does not fit within the mandate of the C.S.G.P., e.g. employment counselling, may request staff assistance in pursuing other sources of support. Similarly, where an organization has been determined ineligible because they have not yet developed the required organizational systems and structures, agency development support may be requested.

Appendix "A" provides a list of new applicants, their eligibility determination, and, if ineligible, the reasons for the determination. Those agencies determined to be ineligible have been notified by staff prior to the May 10, 1999, Municipal Grants Review Committee meeting in order to allow them the opportunity to depute directly to the Committee should they disagree with the staff recommendation.

Conclusions:

This report summarizes the results of the first stage of eligibility determination for new applicants under the 1999 Community Services Grants Program. It is recommended that 27 of the 55 new applicants proceed to the interview stage of assessment.

The funds available for new applicants in 1999 will be limited. Although 27 new applicants will be interviewed, funds may not be available to support all new applicants.

Contact Name:

Chris Brillinger, Tel: 392-8608.

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Appendix "A"

New Applicants not Eligible for Community Services Grants Funding:

(1) 679 Tenant Association:

The agency has requested funding of $10,000.00 for the development, implementation and maintenance of community gardens and increasing recreational space in the Harbourfront area of Toronto.

The program is not eligible for funding. While the project will involve residents of the complex and mobilize community resources, the focus of the initiative is to build community gardens for food relief, improve the neighbourhood and increase recreational space.

(2) Association for Caribbean Advancement:

The agency has requested $50,000.00 to assist in the provision of counseling services to youth of Caribbean descent in East Toronto. The agency currently provides a Friday-night basketball program, annual basketball tournament, and career fair for youth.

The agency is not eligible for funding. The agency is not incorporated, and will not consider a transfer to Type II funding (grants of $10,000.00 or less). The agency lacks experience in providing the service for which funds are requested and was unable to provide a budget for the program.

(3) Baluchi Canadian Association:

The agency will proceed to the next level of assessment.

(4) Barbados St. Michael's Alumnae (Toronto):

The agency did not submit any of the required application forms (only attachments were submitted). The agency cannot be interviewed and therefore is considered ineligible.

(5) Beach Arts Centre, The:

The agency does not have a community service mandate. The agency received funding from Recreation in 1998, and has applied to the wrong program. The agency's request has been referred to Recreation for consideration.

(6) Bloor Jewish Community Centre:

The agency has requested funding of $7,500.00 for the promotion of health and wellness in its local community, including training workshops for practitioners, presentations on health and wellness to local schools, workshops for local businesses and non-profit groups, a Community Health and Wellness Fair and outreach and publicity for its Wednesday evening health talks.

The program is not eligible for funding. Health promotion and health-related activities are not eligible under the Community Services Grants Program.

(7) Blue Ribbon Child Care Society:

The agency has requested funding of $10,000.00, for English and music classes for people experiencing difficulties in the west end of Toronto.

The agency and its program activities were not considered eligible for funding. The mandate of the agency is to run a Day Nursery under the Day Nurseries Act. The C.S.G.P. does not fund daycare centres or day nurseries. As well, the agency has not developed the required organizational systems and structures. There are no service partners, paid staff or fundraising. The agency did not provide the required financial, organizational and program information.

(8) CANACT- Canadian African Newcomer Aid Centre of Toronto:

The agency has requested funding of $35,000.00, for computer training and job search training for African women in the City of Toronto.

The program is not eligible for funding. The C.S.G.P. does not fund employment programs. In 1998 the agency was not recommended for a grant because of serious concerns regarding the agency's performance including an inability to utilize volunteer support, a lack of collaboration with other community agencies, and weak financial management practices. These issues continue to be a concern based on the agency's written submission.

(9) Canadian Tamil Women's Community Services (CTW):

The agency will proceed to the next level of assessment.

(10) Canadian's for Children at Health Risk:

The agency will proceed to the next level of assessment.

(11) Canora: Journal des Canadiens et Canadiennes d'Origine Africaine Antillaise et Asiatique:

The agency has requested funding of $10,000.00 for organizing special events to show French movies to the French-speaking Black community. The organization publishes a community newspaper, rents French videos and organizes soccer events for the French speaking Black community in the Greater Toronto Area.

The program is not eligible for funding. The C.S.G.P. does not fund the proposed activities.

(12) Chinese Family Life Service of Metro Toronto:

The agency will proceed to the next level of assessment.

(13) Chinese Professional Women of Canada:

The agency will proceed to the next level of assessment.

(14) Council of Agencies Serving South Asians:

The agency will proceed to the next level of assessment.

(15) Cypriot Community of Toronto:

The agency has requested $20,000.00 to assist in maintenance of the Cypriot Community Centre, and the provision of cultural activities and support services to members of the Cypriot community. The agency currently provides cultural activities, workshops and recreational activities for members of the Cypriot community across the City of Toronto.

The agency is not eligible for funding. . The organization's activities are principally cultural. The costs for which the agency has requested funding are ineligible under the C.S.G.P.

(16) December 6 Fund:

The agency has requested $10,000.00 for the Revolving Loan Fund Program, which serves women victims of abuse and their children across the City of Toronto.

The agency and its program activities are not considered eligible for funding. The C.S.P.G. does not fund the provision of financial assistance to individuals. Aside from staff costs, the other major budget expenditure is fundraising costs, which are also ineligible. The organization's membership consists only of its board members and employees.

(17) Down Syndrome Association of Scarborough:

The agency has requested $10,000.00 to assist in the provision of community education activities to promote a greater understanding of Down Syndrome. The agency currently provides information about Down Syndrome and conducts monthly support meetings across the City of Toronto.

The agency is not eligible for funding. The agency requires improvement in the areas of governance and financial accountability, and did not provide a 1999 budget. The proposed service duplicates those provided by the Down Syndrome of Toronto. The program lacks appropriate collaboration, and does not appear to be financially viable.

(18) Evergreen:

Support for drop in and street outreach services to the homeless is currently provided under the Emergency Support Fund (ESF). As a result, the agency's request will be considered as a part of the upcoming ESF review process.

(19) Family Day Care Services:

The agency will proceed to the next level of assessment.

(20) Furniture Bank:

The agency has requested $10,000.00 to assist in the provision of furniture and housewares to low income, under-housed people. The agency currently collects donations of furniture and housewares and distributes these to clients across the City of Toronto.

Innovative supports, which facilitate the transition from homelessness to permanent housing, are currently funded under the Homeless Initiatives Fund. As a result, they are not eligible for funding under the C.S.G.P. The agency's request will be forwarded to HIF for consideration.

(21) George Hull Centre, The:

The agency will proceed to the next level of assessment.

(22) Hispanic Development Council:

The agency will proceed to the next level of assessment.

(23) Historical Connexion:

The agency has requested $25,000.00 to assist in the provision of a cultural education and anti-racism program for youth of African descent. The agency currently maintains and disseminates information about the history of African people in Canada with seminars, workshops, research and education.

The agency is not eligible for funding. The agency does not have a community service mandate. The program's cultural education and anti-racism focus is ineligible for funding under the C.S.G.P. Anti-racism initiatives are currently funded under the Access and Equity program, and the agency has already applied to this program for funding.

(24) Human Rights and Race Relations Centre:

The agency has requested funding of $10,000.00 to develop a resource centre to assist Punjabi Ahmadi Muslims across the City of Toronto to access the labor market through workshops, on career planning, job search, resume writing, interview skills and the Internet.

The agency and its programs are not eligible for funding. The mandate of the organization is to provide public education and awareness of racism; anti-racism advocacy; promotion of employment equity initiatives, provide counseling to newcomers in regards to education, housing and employment, and assist them to access political representatives, the labor market, and understand Canadian politics. The agency's request will be forwarded to the Access and Equity Grants Program for consideration.

(25) IBADAN (Oluyole) Canadian Supportive Care:

The agency has requested $10,000.00 to assist in the provision of support services for persons of African descent with developmental disabilities. The agency did not specify the services currently provided.

The agency is not eligible for funding. The application did not demonstrate the necessary track record in the areas of governance, operations, or financial accountability. The agency did not provide a realistic budget, currently operates without staff and with only ten volunteers. The proposed program is developmental, does not appear to be financially viable, and does not involve any collaboration.

(26) Iranian Women's Organization of Ontario:

The agency will proceed to the next level of assessment.

(27) Jewish Immigrant Aid Services of Canada:

The agency will proceed to the next level of assessment.

(28) Marguerite Bourgeoys Family Service:

The agency has requested $10,000.00 to assist in the provision of a natural family planning service for women. The agency currently provides this service to women across the City of Toronto.

The program is not eligible for funding. Family planning and reproductive health services are currently funded by Public Health under purchase of service agreements. As a result, the agency's request is not eligible for funding under the C.S.G.P., but will be referred to Public Health for review.

(29) Marvin Morten Community Resource Centre:

The agency has requested funding for a violence prevention program and parent education program for parents/care givers whose children are in need of protection because of physical abuse.

The agency and its program activities are not eligible for funding. The agency has not developed the required organizational systems and structures in the areas of governance, operations and financial accountability. The agency has unaudited financial statements and did not provide the required financial, organizational and program information.

(30) Metro Street Focus:

The agency has requested $50,000.00 to assist in the provision of street outreach services for the homeless. The agency currently provides street outreach services to homeless and socially isolated people across the City of Toronto.

Support for drop in and street outreach services to the homeless is currently provided under the Emergency Support Fund (ESF). The agency's request will be considered as a part of the upcoming ESF review process.

(31) Multilingual Community Interpreter Services:

The agency will proceed to the next level of assessment.

(32) Nishkam Nursing and Seniors Home:

The agency has requested $10,000.00 to assist in the development of a 128-bed long-term care facility for South Asian seniors. The agency recently incorporated, and does not yet deliver services.

The program is not eligible for funding. The development and provision of long-term care is the responsibility of the Provincial Government.

(33) North York Safety Village:

The agency has requested funding of $10,000.00 for a safety village, made up of a miniature road network, which will deal with safety issues in road safety, fire safety, and training (First Aid, CPR, babysitting) for people in the City of Toronto.

The program is not eligible for funding. The C.S.G.P. does not fund programs whose principal goal, objective, or purpose is the primary responsibility of a municipal department, or Board. The organization is already collaborating with Toronto Police Services, Ambulance Services, Fire Services and Public Health in order to build the facility and develop programs. The majority of the members of the organization's governing body do not reside in the City of Toronto.

(34) On the Move Community Integration Association:

The agency will proceed to the next level of assessment.

(35) Peace by Peace:

The agency will proceed to the next level of assessment.

(36) Progress Place Rehabilitation Centre (Metropolitan Toronto) Inc.:

The agency has requested funding of $25,000.00 for the "Warm Line", a peer support telephone line which provides support from 8 pm to midnight, for people who have severe and persistent mental illness in the City of Toronto.

The agency and program are not eligible for funding. The C.S.G.P. does not replace lost or reallocated government funding. This program has been core funded by the Provincial Government at the level of $75,000.00 in 1997 and 1998. In 1999, the agency proposes to divert $50,000.00 of the Provincial funds to other areas of the organization and to replace that with $50,000.00 from the C.S.G.P. The organization does not have an accessible voting membership, with registered members other than the members of the Board of Directors.

(37) Ralph Thornton Centre:

The agency will proceed to the next level of assessment.

(38) Refugees and Immigrants Information Centre Toronto Inc.:

The agency has requested $36,768.00 to assist in the provision of a violence prevention and conflict resolution initiative for Tamil youth. The agency currently serves immigrants and refugees in St. Jamestown, Cabbagetown and Regent Park.

The agency is not eligible for funding. The agency did not provide a realistic budget, and has no staff. The proposed program is developmental, not financially viable, and lacks appropriate collaborations with other agencies.

(39) Reseau des femmes du Sud de l'Ontario:

The agency will proceed to the next level of assessment.

(40) Serve Canada:

The agency will proceed to the next level of assessment.

(41) Sikh Youth and Family Centre:

The agency will proceed to the next level of assessment.

(42) Silayan Filipino Community Centre:

The agency will proceed to the next level of assessment.

(43) Society for the Aid of Ceylon Minority (SACEM):

The agency has requested $17,560.00 to assist in the provision of a social support and development program for Tamil youth. The agency currently serves members of the Tamil community across Toronto.

The agency is not eligible for funding. The agency does not appear to be financially viable, and is currently supported by a staff of 0.3 FTE. The proposed program is developmental, and is not financially viable. The majority of the proposed activities are ineligible for funding under the C.S.G.P.

(44) Somali Canadian Community Advancement Centre (SCCAC):

The agency has requested funding of $9,000.00 for building the organizational capacity of the agency. The organization serves the Somali community in the City of Toronto.

The agency and program are not eligible for funding. C.S.G.P. requests must be for the delivery of a community service. As well the organization's activities are largely in the area of sports and employment programs which are ineligible under the C.S.G.P. The organization has not yet developed other sources of funding. There was no income in 1999 and the agency anticipates only $3,000.00 in additional funding.

(45) Somali Canadian Women Association:

The agency will proceed to the next level of assessment.

(46) Somali Family Child Skills Development Services:

The agency will proceed to the next level of assessment.

(47) Somali Youth Association of Toronto (S.Y.A.T.):

The agency will proceed to the next level of assessment.

(48) St. Mark's Seniors Club:

The agency will proceed to the next level of assessment.

(49) Sudanese Association of Ontario:

The agency will proceed to the next level of assessment.

(50) Toronto Adventist Community Services:

Support for drop in and street outreach services to the homeless is currently provided under the Emergency Support Fund (ESF). As a result, the agency's request will be considered as a part of the upcoming ESF review process.

(51) Toronto Monthly Meeting of the Religious Society of Friends (Quakers):

The agency will proceed to the next level of assessment.

(52) Unemployed Professional African Women (Watu) Association:

The agency has requested funding of $50,000.00 for an employment counseling program for the Black African community in the City of Toronto.

The program is not eligible for funding. The C.S.G.P. does not fund programs whose principal goal, objective or purpose is the primary responsibility of the Federal or Provincial Government, e.g., employment programs. The agency should pursue appropriate Federal and Provincial funding.

(53) Unlimited Rays of Hope:

The agency has requested funding of $10,000.00 for a community support program that focuses on improving mental health, drug and alcohol prevention and developmental programs for residents of Pelham Park Gardens MTHA complex.

The organization is not eligible for funding. The organization has no general membership to which its governing body is accountable. There are six Board members and three voting members. The organization is not collaborating with the key community service agencies in the area regarding the development of services for the Pelham Park community that do not duplicate already existing services for the residents. There is no other income for the organization other than user fees of $6,000.00, and the program request requires 100 percent funding from the City.

(54) Vietnamese Community of North York and Vicinity:

The agency will proceed to the next level of assessment.

(55) Vietnamese Youth Centre of Toronto:

The agency will proceed to the next level of assessment.

(A copy of the Appendix B referred to in the foregoing report was forwarded to all Members of Council with the agenda of the Municipal Grants Review Committee for its meeting on May 10, 1999, and a copy thereof is on file in the office of the City Clerk.)

(Copies of Appendix B and the communication (Undated) from Ms. Cyriline Taylor of the Barbados St. Michael Alumni (Toronto), referred to in the foregoing report, were forwarded to all Members of Council with the June 1, 1999, agenda of the Strategic Policies and Priorities Committee and copies thereof are also on file in the office of the City Clerk).

13

1999 Recommended Grants Contingency Budget

(City Council on June 9, 10 and 11, 1999, adopted this Clause, without amendment.)

The Strategic Policies and Priorities Committee recommends the adoption of the Recommendation of the Municipal Grants Review Committee embodied in the following communication (May 10, 1999) from the City Clerk:

Recommendation:

The Municipal Grants Review Committee on May 10, 1999, recommended to the Strategic Policies and Priorities Committee the adoption of the attached report (April 30, 1999) from the Commissioner of Community and Neighbourhood Services respecting the 1999 recommended Grants Contingency budget.

--------

(Report dated April 30, 1999, addressed to the

Municipal Grants Review Committee from the

Commissioner of Community and Neighbourhood Services)

Purpose:

To clearly establish criteria for the processing and approval of 1999 requests for Grant Contingency funding.

Funding Sources, Financial Implications and Impact Statement:

Grant Contingency funding of $150.0 thousand has been incorporated into the 1999 Recommended Operating Budget. As requests may originate from various sources, criteria have been established to assist in determining which organizations qualify for Grants Contingency funding.

Recommendations:

It is recommended that:

(1) the allocation criteria as defined in this report be applied for the 1999 Consolidated Grants Budget to all ad hoc requests presented for funding; and

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

Council Reference/Background/History:

As a part of the 1998 consolidation process for the Grants Program, a "grants contingency" line item for $200.0 thousand was created to deal with in-year ad hoc grant requests, which met the City's mandate and for needs arising from transition. During 1998, $115.7 thousand was distributed from this account, of which only $36.6 thousand related to transitional issues.

On May 4, 1998, the Municipal Grants Review Committee approved a report, titled "Ad Hoc Requests for City Grants", which recommended that all ad hoc requests be referred to staff for review and comment before being considered by the Committee.

During the 1999 Operating Budget review process, it was recommended that the Grants Contingency remain in the 1999 Operating Budget, but at a reduced level of $150.0 thousand, to accommodate any further adjustments related to transitional items.

Further, at the April 13, 1999, Council meeting, it was approved that $83.8 thousand be provided to the 761 Community Development Corporation from the following grant service areas: Economic Development, Community Services, Housing through the Homeless Initiative, and Grants Contingency. This pre-committed amount could constitute up to $43.8 thousand of the available Grants Contingency.

Effective June 1, 1999 the Municipal Grants Review Committee will be dissolved with the Grant requests flowing through to the newly established sub-committee of the Policy and Finance Committee.

Comments and/or Discussion and/or Justification:

Given the new political structure and with this being the second year of amalgamation, the Corporate Grants Team felt it worthy to review the criteria for the Contingency Grant funds to ensure their validity into 1999.

Criteria No. (1) and (5) have been slightly modified to reflect the clarification of the exclusions under the Grants Contingency (specifically, donations, gifts, capital expenditures, and the purchase of fundraising tickets), and the revised review process which reflects the development of the Corporate Grants Team.

(1) City Mandate:

The first consideration of all requests for support is to determine whether or not the activity or program for which funding is requested falls within the mandate and priorities as set out by City Council.

If the proposed activity does not fall within the mandate of the City, the activity should not be considered for support.

If funding requests for purposes clearly fall within the mandate of another existing City program, the activity should not be funded from Grants Contingency, but rather from the related program area.

Items requesting donations, gifts, capital expenditure funding or the purchase of fundraising tickets will not be funded from Grants Contingency, but may be eligible to seek other sources of funding.

(2) One-Time Requests:

Only requests which are for one-time activities or programs should be considered. An on-going activity or program may be considered for funding where it is clear that another source of support will be available for the initiative during the year 2000 Operating Budget. Any funding provided from the Grants Contingency must be clearly identified as one-time and the recipient organizations appropriately informed.

(3) Needs Arising from Amalgamation Transition:

Although efforts have been made during 1999 to evaluate and restructure the Grants Program to meet the current needs of the City, there may be instances where a need arises as a delayed result of amalgamation or reorganization of the program. Consideration may be given to organizations previously funded which, through no action of their own, have been inadvertently impacted as a result of the changes.

(4) Required Submission of Financial Information:

Each potential recipient of Grants Contingency funding will be required to submit financial information and meet any conditions attached to specific funding recommendations before funds are released.

(5) Review Process:

The review and monitoring of all Grants Contingency fund requests will be undertaken by the Corporate Grants Team.

All requests for grants funding, subsequent to approval of the 1999 Operating Budget, shall be referred to the Corporate Grants Team Chair. These requests may originate from the Committee Chair, the Committee Clerk, Councillors, or the Mayor's Office.

The Corporate Grants Team will determine if the request meets the basic criteria for Contingency Funding and, if so, will forward the request to the most appropriate grant service area for review and comment. Those requests which do not fall within a specific service area will be reviewed by the Corporate Grants Team.

Funding requests which appear to meet the established basic criteria, will be provided with a standard contingency grant application form and a copy of the criteria. Upon review of the completed application by the appropriate staff, allocation recommendations will be developed for the consideration of Committee.

Conclusions:

The above criteria and processes are intended to assist Committee members and staff in effectively utilizing the limited $150.0 thousand available in Grants Contingency for 1999.

Contact Names:

Susan Bury, Tel: 392-8351.

Chris Brillinger, Tel: 392-8608.

14

Distribution of the Reallocated Grants Funding

(City Council on June 9, 10 and 11, 1999, adopted this Clause, without amendment.)

The Strategic Policies and Priorities Committee recommends the adoption of the Recommendation of the Municipal Grants Review Committee embodied in the following communication (May 10, 1999) from the City Clerk:

Recommendation:

The Municipal Grants Review Committee on May 10, 1999, recommended to the Strategic Policies and Priorities Committee the adoption of the attached report (April 30, 1999) from the Commissioner of Community and Neighbourhood Services respecting the distribution of the reallocated grants funding.

--------

(Report dated April 30, 1999, addressed to the

Municipal Grants Review Committee from the

Commissioner of Community and Neighbourhood Services)

Purpose:

To respond to the recommendation in the 1999 Operating Budget analysis for the grant service areas to finalize the priorities for distributing the reallocated grants funding.

Funding Sources, Financial Implications and Impact Statement:

As of the April 26 and 27, 1999, meeting, Council recommended a reallocation amount of $898.8 thousand in the 1999 approved budget for the Consolidated Grants Program. Of this amount, $50.0 thousand was earmarked for Food Access Capital Grants, with an additional $50.0 being approved by Council. The total Food Access Capital Grant of $100.0 thousand is included in the Community Services Grants.

Excluding the Food Access Capital Grant, a balance of $848.8 thousand was distributed on a pro-rata basis across the grant service areas. These funds will allow each service area to begin to address service levelling issues.

Recommendations:

It is recommended that:

(1) the reallocation amounts within the 1999 approved Consolidated Grants budget be allocated to specific grants programs as described in this report; and

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

Council Reference/Background/History:

During the 1999 budget process, $1,378.8 thousand was identified as "excess" within the Consolidated Grants Program and was available grants funding for 1999, due to the 1998 approved grants being identified as no longer needed in 1999. The Program requested that the full amount be utilized for reallocation within the program, however, the final recommendation of Council on April 26 and 27, 1999, regarding the reallocation amount is that $480.0 thousand should be reduced from the budget and $898.8 thousand should be reallocated. Further, Council recommended that $50.0 thousand of the $898.8 thousand, be earmarked for Food Access Capital Grants.

Comments and/or Discussion and/or Justification:

The $898.8 thousand for distribution, on a pro-rata basis, to each of the grant service areas is broken down according to the area of service levelling:

Arts and Culture Grants:

Toronto Arts Council Grants 61.1 61.1

Community Services Grants

Breaking the Cycle Grant 166.9

Community Services Grants 97.9

Food Access Capital Grants* 100.0 364.8

* includes $50.0 thousand new grant funds

as approved by Council

Recreation Grants:

Minor Recreation Grants 42.5 42.5

Public Health Grants:

AIDS Prevention Grants 63.1

Drug Abuse Program 126.1 189.2

Housing Grants:

Homeless Initiatives 97.7 97.7

Access and Equity Grants:

Multi-Cultural Grants 146.0 146.0

Economic Development Grants:

Commercial Research 8.0

Special Events 3.1 11.1

Urban Development Grants:

Graffiti Transformation 36.4 36.4

Total $948.8

Less: $50 thousand new for

Food Access Grants ( 50.0)

Total Reallocation Amount as Approved $898.8

Conclusions:

Council approved a reallocation amount of $898.8 thousand within the Consolidated Grants Program. The distribution of these funds is presented within the text of this report and in the attached tables.

Contact Name:

Susan Bury, Tel: 392-8351.

(A copy of each of the tables referred to in the foregoing report was forwarded to all Members of Council with the agenda for the Municipal Grants Review Committee for its meeting on May 10, 1999, and a copy thereof is on file in the office of the City Clerk.)

15

Allocation Criteria for a Food Related

Capital Grants Program

(City Council on June 9, 10 and 11, 1999, adopted this Clause, without amendment.)

The Strategic Policies and Priorities Committee recommends the adoption of the Recommendation of the Municipal Grants Review Committee embodied in the following communication (May 10, 1999) from the City Clerk.

Recommendation:

The Municipal Grants Review Committee on May 10, 1999, recommended to the Strategic Policies and Priorities Committee the adoption of the attached report (April 29, 1999) from the Commissioner of Community and Neighbourhood Services respecting the allocation criteria for a Food Related Capital Grants Program, subject to amending section B. (2) of the Appendix A by adding thereto the following:

"(i) The geographic location of the activities."

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(Report dated April 28, 1999, addressed to the

Municipal Grants Review Committee from the

Commissioner of Community and Neighbourhood Services)

Purpose:

To report on allocation criteria for a capital grants program providing funding on an emergency basis for volunteers providing food to the homeless.

Funding Sources, Financial Implications and Impact Statement:

An amount of $100,000.00 has been set aside within the approved 1999 Consolidated Grants Budget for this program.

Recommendations:

It is recommended that:

(1) the Commissioner of Community and Neighbourhood Services approve applications for funding of $1,000.00 or less, subject to the criteria described in this report, and report such approvals to the Community Services Committee for information;

(2) applications in excess of $1,000.00 to a maximum of $30,000.00 be subject to the criteria described in this report and be forwarded to the Community Services Committee and Council for approval;

(3) the authority to sign Letters of Agreement with successful applicants, as required by the "City of Toronto Grants Policy", be delegated to the Commissioner of Community and Neighbourhood Services or their designates;

(4) all groups requesting funds be required to complete the Capital Grant application contained in Appendix "A" of this report; and

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

Council Reference/Background/History:

At the Board of Health meeting of January 29, 1999, it was recommended that Food Access Capital Grants be approved at the level of $500,000.00 annually. An evaluation of the Food Access Program in the former Toronto showed that as part of community food access programming, capital funds for community facilities and better food delivery systems increased community access to nourishing diets.

At the Budget Committee meeting of March 29, 1999, the Commissioner of Community and Neighbourhood Services was directed to report to the Municipal Grants Review Committee regarding allocation criteria for a possible capital grants program for food preparation and food distribution. Subsequently, at the Budget Committee meeting of April 6, 7, and 8, 1999, the Committee directed that "$100,000.00 be earmarked in the Consolidated Grants budget for the express purpose of providing capital funding, on a one-time only basis, for the purchase of refrigerators, ovens, etc., on an emergency basis for volunteers providing food to the homeless, the said funding to be at the sole discretion of the Commissioner of Community and Neighbourhood Services." This recommendation was approved by Council as part of the 1999 Operating Budget.

Comments and/or Discussion and/or Justification:

The capital grants program will consider requests for kitchen equipment to increase the capacity to prepare and distribute food and improve food safety, to replace inefficient and unsafe appliances and to purchase refrigerated vans and trucks to ensure safer distribution of perishable foods for a limited number of projects.

Organizations eligible for funding would have to meet the general criteria for receiving City grants as described in the "City of Toronto Grants Policy", plus the following specific criteria, based on those used in the former Toronto Food Access Grants Program:

Eligibility Criteria:

(1) the capital grant request must support the provision of food to people who are homeless;

(2) the capital grant request must be for improvements that make the delivery of food programs more effective, resulting in a measurable positive impact on the target population;

(3) the organization must demonstrate community involvement in design, fundraising and planning of the program of which the capital request is a part;

(4) the organization must be able to demonstrate that for any built-in capital equipment purchases, e.g., walk-in refrigeration, the building is owned by the applicant or the applicant has long-term rental security of at least five years;

(5) for requests for delivery vehicles, the organization must be able to demonstrate that sufficient revenues are available to properly maintain, operate, and insure the vehicle and that all drivers have the appropriate licence; and

(6) organizations must be incorporated not-for-profit agencies and must provide the City with a recent Audited Statement.

Given public health estimates of need, and the modest amount of money available, requests for funding of $1,000.00 or less will be disbursed on a first come, first served basis to those applicants meeting both the general and specific grants criteria. The application form contained in Appendix "A" will be made available once Council has authorized the recommendations contained in this report. The order of applicants will be determined by the date and time of receipt of completed applications. Once Council approved, a notice announcing the Food Related Capital Grants Program will be sent to all organizations on the grants and Public Health mailing lists.

Requests will be reviewed by staff to determine eligibility based on the program criteria and approved by the Commissioner of Community and Neighbourhood Services. A staff review group composed of representatives from Public Health, Purchasing, and Social Development will be established to review all applications. Applicants that do not meet the criteria will not be recommended for funding.

Requests for funding in excess of $1,000.00 will be reviewed by staff and recommendations made to the Community Services Committee. In light of the funding available, it is recommended that the maximum allocation under the program be set at $30,000.00. This would appear to be an adequate funding level given the Council direction that the funding be for the purpose of purchasing refrigerators, ovens, etc. Organizations requesting funding in excess of $1,000.00 may be required to submit three estimates for the capital purchase. A minimum of $50,000.00 will be reserved for requests of $1,000.00 or less.

The Council authority for this program includes a reference to the provision of capital funding on an emergency basis for "volunteers" providing food to the homeless. For the purposes of this program, organizations that utilize volunteers in the management, administration, fundraising, and/or delivery of food programs for the homeless will be considered eligible for funding.

Conclusions:

Specific criteria for a capital grants program for food preparation and food distribution are provided. Requests for $1,000.00 and below that meet the City of Toronto Grants Policy criteria and the criteria contained in this report will be approved by the Commissioner of Community and Neighbourhood Services. Requests greater than $1,000.00 up to $30,000.00 will be reviewed by staff with recommendations forwarded to the Community Services Committee and Council for consideration.

Contact Name:

Chris Brillinger, Tel: 392-8608.

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Appendix A

Food Related Capital Grant Application

Please ensure that the information provided includes the following:

(A) Information on Your Organization:

(1) Legal Name of Organization Requesting Support

Address:

Contact Person:

Phone Number: Fax:

Alternate Contact:

Phone Number: Fax:

(2) Attach the following:

(a) List of Current Board of Directors.

(b) Organizational Chart.

(c) Type of Incorporation; a copy of your Articles of Incorporation; if Charitable, your Charitable Number.

(d) One-page History of the Organization.

(e) Your Organization's most recent Audited Financial Statements.

(f) Your Organization's Current Year Budget.

(B) Information on the Activity for which a Grant is Requested:

(1) Clearly state the amount of assistance requested.

(2) Briefly outline the proposal. Make sure you include the following:

(a) A detailed description of the equipment to be purchased.

(b) How the equipment will assist in the provision of your programs.

(c) The people who will benefit from the programs.

(d) How the programs are managed, including staffing, reporting requirements, financial accountability.

(e) How people will be involved in the planning, implementation and evaluation of the activity.

(f) Estimated starting and completion dates.

(g) How the activity will be evaluated.

(h) How other groups/organizations will benefit from the Capital Purchase.

(3) Provide a complete activity budget, including use and source of other income.

(4) Provide a list of all funding sources approached, level of assistance requested, and confirmed commitments.

(C) Requirements for City Support:

(1) As a condition of City support, your organization must:

(a) provide an indication that you have adopted and uphold equal opportunity and non-discrimination policies and sign and return the City's Declaration of a Non-Discrimination Policy;

(b) submit a declaration signed by at least two officers of your organization certifying that to the best of their knowledge, the information submitted as part of the request for a grant from the City of Toronto is accurate and complete and that the request for support is endorsed by the Board of Directors of the organization; and

(c) sign a Letter of Agreement demonstrating how City funds are to be used and agreeing to any specific conditions City Council may have attached to the recommended support.

(D) Application Submission:

(1) Please submit a complete copy of the application to:

Food Related Capital Grants Program

Social Development and Administration Division

Community and Neighbourhood Services

Station 1114, 11th Floor, Metro Hall

55 John Street

Toronto, ON M5V 3C6

Attention: Diahann Walcott

16

Prepayment Interest and Discount on

Advance Payment of Realty Taxes

(City Council on June 9, 10 and 11, 1999, adopted this Clause, without amendment.)

The Strategic Policies and Priorities Committee recommends the adoption of the report (March 29, 1999) from the Chief Financial Officer and Treasurer wherein it is recommended that no discount or prepayment interest be offered on taxes paid in advance of the due dates.

The Strategic Policies and Priorities Committee submits the following communication (May 10, 1999) from the City Clerk:

Recommendation:

The Assessment and Tax Policy Task Force advises that on May 3, 1999, it adopted the report (March 29, 1999) from the Chief Financial Officer and Treasurer recommending that no discount or prepayment interest be offered on taxes paid in advance of the due dates.

For the information of the Strategic Policies and Priorities Committee, the Task Force thanked staff of the Finance Department and also requested the Chief Financial Officer and Treasurer to report on the potential for administrative savings if the City collected permit parking and other fees in a like manner as property taxes and to report on whether any savings should be passed on to the affected ratepayer.

Background:

The Assessment and Tax Policy Task Force, on May 3, 1999, had before it a report (March 29, 1999) from the Chief Financial Officer and Treasurer respecting Prepayment Interest and Discount on Advance Payment of Realty Taxes and recommending that no discount or prepayment interest be offered on taxes paid in advance of the due dates.

The following motion by Councillor Flint was voted on and lost:

"That the Assessment and Tax Policy Task Force approve, in principle, a discount program on advance payment of realty taxes for implementation in the year 2000".

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(Report dated March 29, 1999, addressed to the

Assessment and Tax Policy Task Force from the

Chief Financial Officer and Treasurer)

Purpose:

This report provides information regarding the motion of Councillor Flint that taxpayers who elect to pay their interim and/or final taxes in advance of the due date be eligible to receive a discount. Under current Provincial legislation, the proposed discount program is not permitted.

Financial Implications:

Under the proposed discount program, a 2 percent reduction offered for the payment of interim and final taxes paid in full on the first instalment dates in each of the billing cycles would result in the City losing $1.87 for every $100.00 in interim taxes and $1.32 for every $100.00 of final taxes paid in advance. A 5 percent reduction offered for the payment of final taxes in full would result in the City losing $4.32 for every $100.00 in taxes paid in advance. Based on a 5 percent take up of the proposed program, the total loss to the City of a 2 percent reduction for full payment of the interim/final taxes would $2.02 million, while a loss of $2.73 million would be incurred if a 5 percent reduction for full payment of final taxes was offered.

Recommendation:

It is recommended that no discount or prepayment interest be offered on taxes paid in advance of the due dates.

Background:

Section 399(5) of the Municipal Act authorizes a municipality, by by-law, to allow discounts or pay interest on payments of taxes received in advance of their due date. The Act also allows municipalities to pay interest on advance payments received in respect of realty taxes that have not yet been levied. The maximum rate allowed is 12 percent per annum.

As an alternative, municipalities can provide discounts under the provisions of Section 4 of the Municipal Interest and Discount Rates Act ("MIDRA"). MIDRA allows municipalities to pay discount at a rate not exceeding prime plus 1˝ percent.

The Municipal Act and MIDRA do not allow for only certain prepayments to be entitled to a discount. If discounts are to be provided, any amount of taxes paid in advance of their due date would receive a discount. The cost of the discount is borne by the municipality, with no charge back to the school boards.

Prior to 1998, the former City of Toronto was the only area municipality which provided prepayment interest and discount on advance payments of realty taxes. Discount rates were set annually at the same level as interest rates allowed on daily interest bank deposit accounts. Discount was paid on realty taxes paid before the instalment date.

At its meeting on November 20, 1998, the Task Force had before it a motion from Councillor Flint recommending that taxpayers who pay their taxes in full on the 4th instalment receive a discount of 5 percent, and that taxpayers who pay their interim taxes in full on the first instalment and their final taxes in full on the 4th instalment receive a 2 percent discount. The Task Force requested the Chief Financial Officer and Treasurer to report on the recommendations in the motion, including how the request will impact on the current system of billing.

Comments:

Municipalities offer discount programs to encourage taxpayers to pay their taxes in advance. Discount programs offer the taxpayer a convenient payment option as well as a financial incentive to improve the municipalities' cash flow. If interest rates are high, or if a substantial number of taxpayers participate in the program, municipalities may benefit from increased interest income and administrative efficiencies.

At its meeting on September 22, 1997, the Council of the former City of Toronto adopted a report from the City Treasurer which recommended that the prepayment interest and discount program be discontinued, starting with the 1998 tax year. The discount program was discontinued for the following reasons:

(a) Experience indicated that the discount feature did not encourage taxpayers to pay earlier. Analysis showed that the number of taxpayers receiving discount remained relatively constant regardless of the discount rate. For example, the number of taxpayers that received discount in 1990 (when the rate was 8 percent) was 79,729 compared to 76,831 taxpayers that received discount in 1997 (when the rate was 1 percent). Approximately 20 percent of the realty tax accounts that earned discount were paid by mortgage and property management companies to reduce administrative costs. Taxpayers who spent the winter months out of the country and other taxpayers found it more convenient to write one cheque for the interim tax bill and one cheque for the final tax bill;

(b) The reduction in interest rates in the 1990's resulted in a corresponding decrease in discount rates, from 8 percent in 1990 to 1 percent in 1997. The average annual discount earned by each taxpayer dropped from $19.23 in 1990 to $2.66 in 1997. On an average tax bill of $2,500.00, the total annual savings earned through the discount program was 0.11 percent;

(c) The installation of the new tax system in the spring of 1998 would allow taxpayers in the former Toronto to pay their taxes through a preauthorized payment plan, an alternative and convenient payment option that was not previously available due to system limitations;

(d) Elimination of the program resulted in savings for the city of $200,000.00 per annum, with additional savings being realized through reduced administrative costs and business process efficiencies, such as reduced staff time spent on processing journal entries related to the discount; and

(e) Toronto was the only municipality which offered a discount. Discontinuing the program, starting in 1998, established a uniform policy for the new City of Toronto which was in line with the practices of the other former area municipalities.

Given the decision to discontinue the discount program in the former City of Toronto, the tax system for the new City of Toronto did not incorporate a discount feature for the prepayment of taxes.

Existing Tax Billing and Payment Options:

Residents of the new City of Toronto currently have many options available for the billing and payment of taxes. These currently include:

Billing Options:

(i) Taxes billed by instalment: Taxpayers who choose not to enrol in the preauthorized payment plan have their taxes billed in three instalments for the interim tax bill (February, March and April) and three instalments for the final tax bill (June, July and August);

(ii) Preauthorized payment plan: Taxpayers who enrol in the preauthorized payment plan can choose to have payments for taxes automatically withdrawn from their bank account on the due dates for the six instalments, or in equal payments over 11 months (February through December).

Payment Options:

(i) telephone or other bank payments;

(ii) post-dated cheques;

(iii) through their mortgage company;

(iv) through drop boxes located at all civic centres and most libraries;

(v) at cashier or tax office inquiry counters; and,

(vi) by mail.

A discount plan under Councillor Flint's motion would provide another payment option where taxpayers would be required to pay their interim and/or final taxes in full on the first due date for each of the billing cycles in order to receive a discount.

Proposed Discount Program:

The motion before the Task Force recommends that taxpayers who pay their taxes in full on the fourth instalment (usually June in each year) receive a reduction or discount of 5 percent. The motion also recommends that taxpayers who pay their interim taxes in full on the first instalment (February) and their final taxes on the fourth instalment (June) receive a 2 percent reduction. The table below shows the tax payments under the various payment options, as well as the annual savings under the proposed discount program, for a taxpayer owning an average residential house assessed at $220,000.00.

Table 1

Discount Earned under Proposed Discount Program

for Average Home Assessed at $220,000.00

Month

Regular Instalments

Pre-Authorized Payment Proposed Discount Program
6 Instalments 11 Months 2% Reduction on Interim and Final Taxes if paid on 1st & 4th Instalments 5% Reduction on Final Taxes if paid in full on 4th Instalment
Total Taxes Levied $2,771.34 $2,771.34 $2,771.34 $2,771.34 $2,771.34

Taxes Paid - Various Payment Options
January
February $461.89 $461.89 $251.94 $1,357.96 $461.89
March $461.89 $461.89 $251.94 $461.89
April $461.89 $461.89 $251.94 $461.89
May $251.94
June $461.89 $461.89 $251.94 $1,357.96 $1,316.39
July $461.89 $461.89 $251.94
August $461.89 $461.89 $251.94
September $251.94
October $251.94
November $251.94
December $251.94

Total -

$2,771.34 $2,771.34 $2,771.34 $2,715.92 $2,702.06
Savings - $ $0.00 $0.00 $0.00 ($55.42) ($69.28)
Savings - % 0.00% 0.00% 0.00% -2.00% -2.50%

The table below shows the cost to the City of providing discount under the proposed program for every $100.00 of taxes paid in advance:

Table 2

Cost to City of Proposed Discount Program

per $100 in Taxes Paid in Advance

2% Discount - Full Payment on 1st & 4th Instalments (Interim/Final) 5% Discount - Full Payment on 4th Instalment (Final)
Income earned on full Interim paid Income earned on full Final paid Income earned on full Final paid
Gross income earned per $100 of taxes paid in advance $0.41 $0.96 $0.96
Less: Current income earned through regular instalments (with no discount) ($0.28) ($0.28) ($0.28)
Additional income per $100 of taxes paid in advance $0.13 $0.68 $0.68
Less: Discount paid ($2.00) ($2.00) ($5.00)
Net loss per $100 of taxes paid in advance ($1.87) ($1.32) ($4.32)

Assumptions:

1. Collection of $100.00 in taxes split between City and education (57.4 percent and 42.6 percent respectively) based on preliminary tax billing estimates for 1999.

2. City expenditures of $.574 assumed to occur evenly throughout the year.

3. Assumed investment interest rate of 5 percent.

Table 2 shows that a 2 percent reduction offered for the payment of interim and final taxes paid in full on the first instalment dates in each of the billing cycles would result in the City losing $1.87 for every $100.00 in interim taxes and $1.32 for every $100.00 of final taxes paid in advance. A 5 percent reduction offered for the payment of final taxes in full would result in the City losing $4.32 for every $100.00 in taxes paid in advance. Based on a 5 percent take up of the proposed program, the total loss to the City of 2 percent reduction would $2.02 million, and $2.73 million if a 5 percent reduction was offered.

It should be noted that, under existing legislation, discounts are set by the municipality at a rate per annum, with discount calculated on advance payments based on the number of days received prior to the due date. For example, the discount that would be earned on $100.00 received in advance would be calculated as follows:

$100 × Discount Rate × Number of days received prior to due date ÷ 365 = Discount earned

In 1994, the former City of Toronto considered changing its discount policy so that discount would be earned only if interim taxes were paid in full on the first instalment, or final taxes were paid in full on the fifth instalment. However, at that time, the City Solicitor of the former city advised that there is no express authority in either piece of enabling legislation (the Municipal Act or MIDRA) which would permit Council to allow discounts only on those prepayments of instalments made by the 1st (interim) and 5th (final) due dates and there is no express authority in the legislation which permits Council to draw distinctions in respect of which prepayments are entitled to discounts and which are not.

In the former City of Toronto, approximately 50 percent of the realty tax accounts were credited with discounts in 1997. The average discount earned in 1997 was $2.66 or 0.11 percent of taxes levied for that account. As required under current legislation, discount was paid on any payment received prior to an instalment date. Therefore, if a payment was made on February 11th for a February 15th due date, the taxpayer's account would be credited with discount, although it would not be significant. Similarly, where a taxpayer overpaid an instalment by $5.00, discount was paid on that amount for the number of days it was received in advance of the next due date. Consequently, while the number of accounts that received discount may appear significant, it is not a true representation of the number of taxpayers who intentionally pre-paid their taxes to take advantage of the discount.

The new City of Toronto may institute a discount program under the provisions of the Municipal Act or MIDRA. However, in accordance with the legislation, any discount must be applied to all payments made in advance of any due date and cannot be provided at differing rates depending on when the payment is made. Therefore, the proposed discount program as set out in the motion is not currently allowed under existing legislation.

Discount Rates:

Discount rates in the former City of Toronto were set annually, based on the prevailing interest offered by financial institutions on daily interest savings accounts. However, during the mid-1990's, when daily interest savings rates were less than 1 percent per annum, the City set its discount rate at 2 percent as a discount rate of less than 1 percent would not encourage taxpayers to make prepayments of taxes.

Councillor Flint's motion states that there may be financial advantages, such as additional investment interest earned, when the full tax amount is received at the beginning of a billing cycle. However, as noted in Table 2 above, such a discount program would result in a net financial loss to the City.

Table 3 below shows the discount that would be earned by a taxpayer owning an average home assessed at $220,000.00 using discount rates of 1 percent, 2 percent, 3 percent, 4 percent or 5 percent per annum.

Table 3

Discount Earned for Average Home Assessed at $220,000 - Various Discount Rates

(Assumes Full Payment on 1st/4th Instalments - Interim and Final)

Instalment Due Date Instalment Amount Discount Rate = 1% Discount Rate = 2% Discount Rate = 3% Discount Rate = 4% Discount Rate = 5%
February $461.89 $0.00 $0.00 $0.00 $0.00 $0.00
March $461.89 $0.35 $0.71 $1.06 $1.42 $1.77
April $461.89 $0.73 $1.49 $2.24 $2.99 $3.73
July $461.89 $0.00 $0.00 $0.00 $0.00 $0.00
August $461.89 $0.38 $0.76 $1.14 $1.52 $1.90
September $461.89 $0.77 $1.54 $2.32 $3.09 $3.86
$2,771.34
Annual Savings - $ $2.24 $4.51 $6.76 $9.01 $11.26
Annual Savings - % 0.08% 0.16% 0.24% 0.33% 0.41%

Table 4 below shows the estimated income or loss to the City of a discount program, using discount rates of 2 percent and 5 percent.

Table 4

Estimated Income/Loss to City per $100 in Taxes Paid in Advance

Discount Program Established under S. 399 of Municipal Act
Discount Rate = 2%
Income earned - Interim paid Income earned - Final paid
16-Feb 08-Mar 05-Jul 03-Aug
Gross income earned per $100 of taxes paid in advance $0.433 $0.342 $0.703 $0.571
Less: Current income earned through regular instalments (with no discount) ($0.277) ($0.277) ($0.506) ($0.506)
Additional income per $100 of taxes paid in advance $0.156 $0.065 $0.197 $0.065
Less: Discount paid ($0.066) ($0.024) ($0.075) ($0.024)
Net income/(loss) per $100 of taxes paid in advance $0.090 $0.041 $0.122 $0.041
16-Feb 08-Mar 05-Jul 03-Aug
Gross income earned per $100 of taxes paid in advance $0.431 $0.342 $0.699 $0.571
Less: Current income earned through regular instalments (with no discount) ($0.277) ($0.277) ($0.506) ($0.506)
Additional income per $100 of taxes paid in advance $0.154 $0.065 $0.193 $0.065
Less: Discount paid ($0.158) ($0.063) ($0.200) ($0.063)
Net income/(loss) per $100 of taxes paid in advance ($0.004) $0.002 ($0.007) $0.002
Assumptions:

1. Discount on instalments calculated as present value of amount due at instalment due date to date paid (ie., March 8 due date paid Feb 16 discounted for 20 days).

2. Collection of $100.00 in taxes split between City and education (57.4 percent and 42.6 percent respectively) based on preliminary tax billing estimated for 1999. City expenditures of $.574 assumed to occur evenly throughout the year.

3. Assumed yield earned/(charged) on cash balances.

4. Ratepayers making payment after February 16 or July 5 assumed to have made regular instalment payment up to that point.

With current interest rates on three month, six month and one year treasury bills earning interest at 4.77 percent, 4.85 percent and 4.88 percent respectively, the City should not offer a discount rate of 5 percent for the prepayment of taxes. However, Table 4 shows that a discount rate of 2 percent would result in the City earning additional interest income, although the rate of return for every $100.00 collected in advance is not substantial. With a maximum net yield of 0.12 percent, or $1,218.00 for every $1 million in final taxes paid in full on the first instalment date of the final billing cycle, a discount rate of 2 percent would likely result in the City not earning enough additional interest income to offset the cost of establishing and administering a discount program.

In order to maximize additional interest income earned, in addition to recovering the cost of administering a discount program, current interest rates would require the City to set a discount rate at 1 percent or less. However, as shown in Table 3 above, a discount rate of 1 percent would save the average residential taxpayer $2.24 per year. It is anticipated that annual savings for the average taxpayer in this range would not encourage a sufficient number taxpayers to pay their taxes in advance to justify establishing a discount program.

Discount Program - Implementation:

As a result of the decision to discontinue the discount program in the former Toronto, the tax system for the new City does not include a discount feature. At present, there are other priority developments and system requirements that rank ahead of a program for discount. For 1999, significant tax system modifications are required in order to make the changes to the frozen assessment listing. Due to the amalgamation, and the subsequent conversion from six tax systems into one, additional programming changes or system enhancements underway include appeal processing, BIA levies and interfaces to the general ledger. Due to the dedication of system resources to these tasks, it is not possible to make the additional system modifications to include a prepayment discount feature in time for the 1999 final tax billing. Therefore, if Council chooses to implement a discount program, the earliest implementation date would be January 1, 2000.

Conclusion:

The proposed discount program as set out in the attached motion is not permitted under existing legislation. If a municipality elects to have a discount program, the same discount rate must be paid on any payment of any instalment paid in advance of the due date.

The residents of the City of Toronto have many options available for the payment of realty taxes. Based on the experience of the former City of Toronto, offering a discount feature would not encourage a substantial number of taxpayers to pay their taxes in advance of the due date. Due to other policy developments and tax system modifications required for 1999, it is not possible to make the additional system modifications to include a prepayment discount feature in time for the 1999 final tax billing. If Council chooses to implement a discount program, the earliest implementation date is January 2000.

Contact Names:

Lynne Ashton, 397-4203

Paul Wealleans, 397-4208

(Motion of Councillor Flint made at Assessment and Task Policy Task Force, November 20, 1998.)

Whereas many residential property owners are uncomfortable with the monthly automatic withdrawal system to pay their taxes; and

Whereas it is often convenient to make one or two tax payments rather than six; and

Whereas there are financial advantages (such as additional interest earned and reduced staff time) when the full tax amount is received at the beginning of the payment year;

Therefore Be It Resolved that taxpayers who elect to pay a full year's taxes at the time of the 4th instalment should qualify for a 5 percent discount; and

Be It Therefore Resolved that those who elect to pay in advance twice a year qualify for a 2 percent discount.

17

Street Tree Planting Application

- Toronto Atmospheric Fund

Ward 10 (North York Centre) and

Ward 12 (North York Seneca Heights)

(City Council on June 9, 10 and 11, 1999, amended this Clause by adding thereto the following:

"It is further recommended that the Tree Advocate, in consultation with the Commissioner of Economic Development, Culture and Tourism, be requested to develop a prioritization process for tree planting projects which would permit all communities equal opportunity to access funds, and submit a report thereon to the Economic Development and Parks Committee.")

The Strategic Policies and Priorities Committee recommends the adoption of the Recommendation of the Budget Committee embodied in the following communication (May 26, 1999) from the City Clerk:

Recommendation:

The Budget Committee on May 25, 1999, recommended to the Strategic Policies and Priorities Committee, and Council, the adoption of the report (May 3, 1999) from the Commissioner of Economic Development, Culture and Tourism.

The Budget Committee reports, for the information of the Strategic Policies and Priorities Committee and Council, having requested the Commissioner of Economic Development, Culture and Tourism to report back to the Economic Development and Parks Committee on the tree planting program or the lack thereof.

Background:

The Budget Committee had before it a report (May 3, 1999) from the Commissioner of Economic Development, Culture and Tourism advising that the application to the Toronto Atmospheric Fund to obtain funds to offset the request in the Capital Budget has been declined; and recommending that the Department proceed with the implementation of the project as originally set out in the 1999 Capital Works Program.

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(Report dated May 3, 1999, addressed to the

Budget Committee from the Commissioner of Economic

Development, Culture and Tourism)

Purpose:

The approved Capital Works Program includes $50,000.00 to fund the planting of approximately 130 large caliper trees in the North Parks and Recreation District. Budget Committee directed staff to make application to the Toronto Atmospheric Fund to obtain funds to offset the request in the Capital Budget and to report back if the application was declined. For the information of Committee, the application to fund the planting was declined by the Toronto Atmospheric Fund.

Recommendation:

It is recommended that the Department proceed with the implementation of the project as originally set out in the 1999 Capital Works Program.

Comments:

Staff completed an application to the Toronto Atmospheric Fund and submitted the application January 28, 1999. At its meeting of March 23, 1999, the Board of Directors declined the application. Although one of Toronto Atmospheric Fund's goals is "Create and preserve urban green spaces that absorb carbon dioxide from the atmosphere", the Fund only supports special tree planting initiatives that meet certain criteria, namely:

(1) strategic tree plantings that provide shade and/or wind breaks to buildings, thereby providing reductions in heating or cooling needs, and lowering greenhouse gas emissions;

(2) Community projects which include an education and an outreach component; many of the community tree-planting projects Toronto Atmospheric Fund supports are a doorway to more extensive climate change projects in communities which Toronto Atmospheric Fund has not been able to reach, such as communities in the former municipalities outside of the old Toronto, or certain ethnic communities;

(3) tree plantings in new parks, such as Round House Park and Greenwood Park; and

(4) tree plantings on school grounds, as part of Toronto Atmospheric Fund's Cool Schools Programs; the trees provide shade or wind breaks to the school, shade the playgrounds, or are part of an overall naturalization plan for the school grounds.

While it is unfortunate that this project was not deemed a special tree planting, department staff support the project as an improvement to the appearance of the area and the environmental benefits of tree planting.

Contact Name:

Don Smith, Senior Coordinator, Research and Grants, 392-8412.

18

Transmittal of Evaluation of the

Leaside Neighbourhood Branch Library -

Capital Budget Project

(City Council on June 9, 10 and 11, 1999, adopted this Clause, without amendment.)

The Strategic Policies and Priorities Committee recommends the adoption of the Recommendation of the Budget Committee embodied in the following communication (May 26, 1999) from the City Clerk:

Recommendation:

The Budget Committee on May 25, 1999, recommended to the Strategic Policies and Priorities Committee, and Council, the adoption of the report (May 10, 1999) from the City Librarian.

The Budget Committee reports, for the information of the Strategic Policies and Priorities Committee and Council, having requested the City Librarian to report back to the Budget Advisory Committee during the year 2000 Capital Budget process outlining cost savings due to efficiencies in staffing and maintenance.

Background:

The Budget Committee had before it a report (May 10, 1999) from the City Librarian advising that the Toronto Public Library Board on May 3, 1999, adopted the Leaside Neighbourhood Branch Library report from the City Librarian, wherein it is recommended that:

(1) the Board adopt Option (2) as outlined in the Parkin Group report as the preferred option and convey this to the Budget Committee in May 1999, as requested; and

(2) the Board proceed to working drawings for the new building in 1999, funded by expending the balance of the 1999 capital allotment for the Leaside project estimated at $240,000.00.

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(Report dated May 10, 1999, addressed to the

Budget Committee from the City Librarian)

Attached for consideration of the Budget Committee at its meeting on May 25, 1999, is the Leaside Neighbourhood Branch Library report (May 3, 1999) from the City Librarian, which was adopted by the Toronto Public Library Board at its meeting on May 3, 1999, wherein it is recommended that:

(1) the Board adopt Option (2) as outlined in the Parkin Group report (April 26, 1999) as the preferred option and convey this to the Budget Committee in May 1999, as requested; and

(2) the Board proceed to working drawings for the new building in 1999, funded by expending the balance of the 1999 capital allotment for the Leaside project estimated at $240,000.00.

The report is provided in response to the Budget Committee's request for an overall evaluation of the Leaside Public Library facility.

Project Cost Estimates (GST is excluded from all amounts)

Option 1 - Upgrade Existing Building

- Renovations to existing building including $1,362,409.00

construction of new elevator, barrier free

washroom and enlarged main entrance

- Professional fees and associated costs (10 percent) 136,000.00

- Furniture, fixtures and equipment 175,000.00

- Building permit fees at $12.00 per square metre 11,160.00

Total Project Cost Estimate (renovation) $1,684,569.00

Option 2 - New Building

- Construction of new 9,000 square feet library $1,477,211.00

including demolition of existing building

- Professional fees and associated costs (10 percent) 147,720.00

- Furniture, fixtures and equipment 175,000.00

- Building permit fees at $12.00 per square metre 10,800.00

Total Project Cost Estimate (new construction) $1,810,731.00

(Report dated May 3, 1999, addressed to the

Toronto Public Library Board from the City Librarian)

Purpose:

To present the results of the Feasibility Study to determine whether to retrofit or reconstruct Leaside Neighbourhood Library.

Funding Sources, Financial Implications and Impact Statement:

Funding for the project was provided in the 1998 Capital Budget and further funds were approved pending the City Librarian's report to the Budget Committee on an overall evaluation of the Leaside Public Library facility.

Recommendations:

It is recommended that the Toronto Public Library Board:

(1) adopt Option (2) as outlined in the Parkin Group report as the preferred option and convey this to the Budget Committee in May 1999, as requested; and

(2) proceed to working drawings for the new building in 1999, funded by expending the balance of the 1999 capital allotment for the Leaside project estimated at $240,000.00.

Comments and/or Discussion and/or Justification:

In 1998, a capital budget of $235,000.00 was approved for the Leaside Neighbourhood Library to provide barrier-free access to the building (elevators, washroom, automatic doors). Upon undertaking the work for this project, difficulties associated with high water table escalated the cost to $600,000.00.

As a result of the 1999 capital budget discussions, Council directed that the increase in expenditures of $65,000.00 in 1999 and $300,000.00 in 2000 required for the Leaside Accessibility project be approved pending the City Librarian's report to the Budget Committee on an overall evaluation of the Leaside Public Library facility.

Overall concern was expressed about the $600,000.00 cost of providing barrier-free access when the whole facility could be completely replaced at two-to-three times the cost. The expenditure was considered not good value for money, particularly in view of the fact that other building deficiencies would remain.

The Parkin Group was employed by Toronto Public Library to undertake an overall evaluation of the Leaside Public Library.

The results of the Parkin Group study are two options, with costing provided for each. Option (1) is for renovating the existing facility at just under $1.7 million. Option (2), the recommended option, is for demolition of the existing facility and construction of a new facility at $1.8 million.

In assessing both options it is important to note that the renovation program to upgrade the existing facility in Option (1) does not address a number of significant deficiencies, and there is no guarantee as to the longevity of the building or equipment:

(a) An elevator is required in the retrofit option. In addition, the elevator doors will open directly into the auditorium; there is no space for a vestibule or lobby area on the lower level.

(b) While the circulation desk service area will be enhanced with a renovation, site lines into the adult and children's areas will remain problematic. It is anticipated that current staffing levels at Leaside will remain unchanged. For those times when it is not possible to staff the adult or children's desks, the circulation desk staff will continue to be responsible for service in those areas and will have difficulty monitoring these activities.

(c) The stairway to the lower level is very steep. An investigation was undertaken to rebuild the existing stairway that would see a decrease in the slope as well as eliminate the 90 degree turn at the landing. However, such a significant redesign of the existing facility would impact on space allocation (a minimum of eight feet would be lost in the auditorium), and increase costs significantly. In the retrofit option, there is no change to the existing stair.

(d) There will continue to be inefficient use of space. There is no opportunity to rationalize space allocation for collection and services; e.g., the proportion of adult and children's areas and the opportunity to respond to local needs such as the addition of a local history collections area.

(e) Energy efficiency of the building could be improved with the installation of insulation and a vapour barrier on perimeter walls, but this upgrade may cause deterioration of the exterior wall brickwork.

A significant investment of almost $1.7 million results in some important improvements to the Leaside Library. However, the Library Board is left with a facility built in 1950 where a number of deficiencies continue, and the life expectancy of the building and equipment remain uncertain.

Contact Names:

Ms. Ann Eddie, Director, Administration, 393-7091, Mr. Bruce Barnett, Senior Manager, Facilities, 395-5880.

(A copy of the Leaside Branch Feasibility Study referred to in the foregoing report was forwarded to each Member of Council with the agenda of the Budget Committee meeting of May 25, 1999, and a copy thereof is also on file in the office of the City Clerk.)

19

Toronto Youth Job Corps and Youth Outreach Toronto

(City Council on June 9, 10 and 11, 1999, adopted this Clause, without amendment.)

The Strategic Policies and Priorities Committee recommends the adoption of the Recommendation of the Budget Committee embodied in the following communication (May 26, 1999) from the City Clerk:

Recommendations:

The Budget Committee on May 25, 1999, recommended to the Strategic Policies and Priorities Committee, and Council, the adoption of the report (May 5, 1999) from the Commissioner of Community and Neighbourhood Services.

Background:

The Budget Committee had before it a communication (May 19, 1999) from the City Clerk advising that the Community and Neighbourhood Services Committee on May 19, 1999, recommended to the Budget Committee, and Council, the adoption of the report (May 5, 1999) from the Commissioner of Community and Neighbourhood Services, wherein it is recommended that:

(1) City Council authorize the Commissioner of Community and Neighbourhood Services to enter into a funding agreement with Human Resources Development Canada for expansion of Toronto Youth Job Corps for the period April 1, 1999 to March 31, 2000, the total cost of the agreement not to exceed $1,256,370.00 gross, and the City of Toronto's contribution to the program not to exceed the approved 1999 operating budget for Job Corps of $156,370.00;

(2) the Commissioner of Community and Neighbourhood Services identify and contract with an appropriate non-profit organization to deliver the program in the Jane Finch area;

(3) the Community and Neighbourhood Services Department be authorized to budget for the $74,000.00 net impact for the year 2000 budget;

(4) Toronto Youth Job Corps and Youth Outreach Toronto program management and administration be immediately transferred from the Social Services Division to the Social Development Division; and

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

--------

(Communication dated May 19, 1999, addressed to the

Budget Committee from the City Clerk)

Recommendation:

The Community and Neighbourhood Services Committee on May 19, 1999, recommended to the Budget Committee, and Council, the adoption of the report (May 5, 1999) from the Commissioner of Community and Neighbourhood Services respecting the Toronto Youth Job Corps and Youth Outreach Toronto.

Councillor Prue, at the meeting of the Community and Neighbourhood Services Committee on May 19, 1999, declared his interest in the aforementioned report, in that his wife is an employee of Human Resources Development Canada and is involved in determining grants that may be awarded to various groups, including the City of Toronto.

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(Report dated May 5, 1999, addressed to the

Community and Neighbourhood Services Committee from the

Commissioner of Community and Neighbourhood Services)

Purpose:

This report recommends a number of changes to the Toronto Youth Job Corps and Youth Outreach Toronto programs. In conjunction with Human Resources Development Canada (HRDC), creation of a new Job Corps site in the Jane Finch area is recommended. Reflecting recent changes to the mandate of the Ontario Works program, transfer of responsibility for program administration from the Social Services Division to the Social Development Division is proposed. Finally, authorization is sought to begin discussions with HRDC regarding the future cost-sharing arrangements for the programs.

Funding Sources, Financial Implications and Impact Statement:

There are no financial implications in 1999 beyond the approved operating budget for the Toronto Youth Job Corps and Youth Outreach Toronto programs and $74,000.00 net implication for the year 2000.

Recommendations:

It is recommended that:

(1) City Council authorize the Commissioner of Community and Neighbourhood Services to enter into a funding agreement with HRDC for expansion of Toronto Youth Job Corps for the period April 1, 1999 to March 31, 2000, the total cost of the agreement not to exceed $1,256,370.00 gross, and the City of Toronto's contribution to the program not to exceed the approved 1999 operating budget for Job Corps of $156,370.00;

(2) the Commissioner of Community and Neighbourhood Services identify and contract with an appropriate non-profit organization to deliver the program in the Jane Finch area;

(3) the Community and Neighbourhood Services Department be authorized to budget for the $74,000.00 net impact for the year 2000 budget;

(4) Toronto Youth Job Corps and Youth Outreach Toronto program management and administration be immediately transferred from the Social Services Division to the Social Development Division; and

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

Background:

Toronto Youth Job Corps and Youth Outreach Toronto programs were initiated in 1983. Both programs are designed to help severely employment disadvantaged youth in the City of Toronto. Since their initiation, the programs have operated as a partnership between the Municipality of Metropolitan Toronto and HRDC.

Youth Outreach Toronto is designed to assist youth who are reluctant to access mainstream programs and services, and especially those who have given up in their frustrated efforts to find training, education and job opportunities. Generally speaking, these youth have few skills, low educational achievement and a host of other barriers including health issues, lack of stable housing, high levels of illiteracy and extremely poor or non-existent work histories. Staff work on the streets and through community agencies to provide counseling, information and referral services. Clients are linked to services that will help prepare them to approach the labour market.

Toronto Youth Job Corps is recognized by youth serving agencies within Toronto as being the program most able to work with Toronto's most barriered youth. Community agencies do not have the resources available to work with this needy group and these agencies refer their hard to serve youth to this program. Two agencies currently deliver Job Corps, namely St. Christopher House and West Scarborough Neighbourhood Community Centre. The program is designed to help disadvantaged youth secure and maintain employment through counseling, life skills training, work experience and job placement.

Discussion:

Addressing Service Needs in Toronto:

At this time, reflecting an analysis of service gaps, HRDC has indicated their willingness to commit $400,000.00 in new funds to cover the cost of program expansion in the Jane Finch area of Toronto. City staff concur with HRDC regarding the need for a Job Corps program site in this part of the City.

The Jane Finch area is a high need area with limited youth services for "at risk" youth.

The inclusion of Job Corps in this area will provide services to a group of youth who desperately need support in gaining employment.

The City is not being asked to contribute any new program funds in 1999 to cover the proposed expansion. HRDC further acknowledges that the expansion of Job Corps will place additional program administration demands on City staff. Given these added responsibilities, it is mutually agreed that effective program delivery requires increased resources directed to program co-ordination. For this reason, HRDC has offered to provide the City with funds to cover two-thirds of a Co-ordinator's salary through to March 31, 2000. City funding exists within the 1999 approved budget to cover the remaining one-third portion of the salary.

Rationalizing Program Management:

Job Corps and Youth Outreach Toronto are currently managed by the Social Services Division. The programs have traditionally served a substantial number of unemployed youth who are not in receipt of social assistance. Under the Ontario Works Act, passed in 1997, Toronto Social Services (TSS) mandate is now focused on delivering services to Toronto residents who are eligible for social assistance. Thus, the continued delivery of these programs falls outside of the Division's mandate. In addition, youth on social assistance who would have been served by these programs in the past, are now primarily assisted by Toronto Social Services caseworkers who have responsibility for delivering employment services directly to these clients.

At the same time, continued City involvement in the management of these programs is critical. The Social Development and Administration Division within the Community and Neighbourhood Services Department, is well positioned to assume responsibility for these programs. Social Development has the corporate lead on a number of initiatives aimed at vulnerable and unemployed youth, and also works with a wide range of community organizations delivering a range of programs to Toronto youth. The addition of the Job Corps and Youth Outreach Toronto complements these responsibilities, and will allow for more effective co-ordination of youth programs within the Division. It should also be noted that the proposed program co-ordinator position will be responsible for a range of youth employment initiatives including Job Corps, Youth Outreach Toronto, squeegee diversion, and Youth Employment Counseling Centre funding.

Future Funding Issues:

Currently, the two existing Job Corps sites are funded 90 percent HRDC, employer's contributions, and the Province of Ontario. The remaining 10 percent is provided by the City of Toronto. While covering the costs of program expansion in 1999, HRDC has requested that the City contribute to the new Job Corps site in Jane Finch at the same cost-sharing level as the two existing Job Corps programs, beginning April 1, 2000. At this date, the City's 10 percent contribution for the new site will be $60,000.00 net.

As noted, HRDC has also agreed to cost-share a City program co-ordinator position providing two-thirds of the salary in 1999. However, beginning in April 2000, HRDC is proposing that this salary be shared on a 50/50 basis with the City, requiring an additional annual City commitment of approximately $14,000.00. The total funding commitment from the City in 2000 will thus rise by $74,000.00 net. In conjunction with HRDC staff, the City will negotiate final funding arrangements for the period beginning April 1, 2000, in an effort to ensure that necessary program supports continue to be available to vulnerable youth in the Jane Finch area.

Conclusion:

Aligning the range of current youth related initiatives in one program area will facilitate increased consistency and co-ordination in the provision of youth services. The expansion of Job Corps to add a third delivery site will increase the availability of employment related services to disadvantaged youth in a high need area of the City of Toronto. City staff will continue to meet with HRDC officials to review our mutual objectives and co-ordinate youth programming and initiatives. Staff will report on the implications of the revised cost-sharing arrangement for these programs as part of the year 2000 budget cycle.

Contact Names and Telephone Numbers:

Ms. Heather MacVicar, General Manager, Tel: 392-8952, Mr. Chris Brillinger, Manager, Community Resource Unit, Tel: 392-8608.

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(Communication dated May 17, 1999, addressed to

Ms. Dianne Bradley, Director General, Service Delivery,

Human Resources Development Canada from the

Commissioner of Community and Neighbourhood Services)

Thank you for your letter dated April 20, 1999. I too am pleased with the long standing working relationship between the City of Toronto and Human Resources Development Canada. In particular, I appreciate your support in the amalgamation of youth services within the City of Toronto.

A report will be forwarded to the Community and Neighbourhood Services Committee on May 19, 1999, outlining the program administration changes for both Toronto Youth Job Corps and Youth Outreach Toronto. The report will also outline the agreement between Human Resources Development Canada and the City of Toronto with respect to funding for the management position.

Funding for the City of Toronto is determined one fiscal year at a time, and as such approval for funding arrangements beyond 1999 cannot be approved at this time. The Community and Neighbourhood Services Department is committed to the current funding arrangement and to supporting the continuation of our relationship with Human Resources Development Canada in this area in the future.

I would like to take this opportunity to express my appreciation of Human Resources Development Canada's ongoing support and commitment to the City's youth employment initiatives.

Should you require further information, please do not hesitate to contact me directly or alternatively Ms. Carol Williams at 397-7301.

(Communication dated April 20, 1999, addressed to the

Commissioner of Community and Neighbourhood Services

from Ms. Dianne Bradley, Director General, Service Delivery,

Human Resources Development Canada)

I would like to open by saying how pleased I am with the quality of the working relationship which exists between Human Resources Development Canada and the City of Toronto.

Our collaboration of longest standing is certainly our joint activity in support of youth employment, namely the Toronto Youth Job Corps, the Youth Outreach Program and, more recently, Mayor Mel's Youth Initiative and the Squeegee Diversion Initiative. As you know, Minister Claudette Bradshaw announced on March 26, 1999, the addition of a third site to the Toronto Youth Job Corps program to provide services in the northern area of the City. I particularly appreciate the support of your staff in helping us get this site in operation as soon as possible. The Federal government will be fully funding this site for its first year of operation (1999-2000). At this time, I would like to request the City of Toronto to begin to participate financially in the operation of the third site in the same proportion (10 percent) as the City's support for the current two sites in the fiscal year 2000-2001. We will also be encouraging the third site to develop positive and productive relationships with the Ontario Government's Job Connect program and with private sector partners.

My staff have had several positive meetings with your staff on the best way to offer organizational support to our jointly funded youth activity. I do support the proposal of amalgamating all youth employment focussed activity within the Social Development Division. I do understand this move will require the support of a full time manager. This position is currently funded one third through your contribution to the Toronto Youth Job Corps Program. Human Resources Development Canada is willing to fund the remaining two thirds of this position for the current fiscal year (1999-2000).

Our preference over time, however, is to move to a 50/50 share of this position by the next budget year.

I appreciate your consideration of these requests. Please contact myself or Ms. Lesley Buresh at 462-7310, for additional information you might require. Thank you, again, for all your support to date.

20

Homes for the Aged - 1999 Operating Budget

(City Council on June 9, 10 and 11, 1999, adopted this Clause, without amendment.)

The Strategic Policies and Priorities Committee recommends the adoption of the Recommendation of the Budget Committee embodied in the following communication (May 26, 1999) from the City Clerk:

Recommendations:

The Budget Committee on May 25, 1999, recommended to the Strategic Policies and Priorities Committee, and Council, the adoption of the report (May 20, 1999) from the Commissioner of Community and Neighbourhood Services.

Background:

The Budget Committee had before it a report (May 20, 1999) from the Commissioner of Community and Neighbourhood Services providing an analysis of the impact and an exploration of the options that a reinvestment of Provincial funding would have on the Homes for the Aged and recommending that:

(1) the 1999 operating budget for the Homes for the Aged be increased by $697,000.00 to enable the Division to access additional Provincial funding, which is available to enhance nursing services;

(2) this report be referred to the Community Services Committee for discussion of the policy issues and options outlined herein; and

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

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(Report dated May 20, 1999, addressed to the

Budget Committee from the

Commissioner of Community and Neighbourhood Services)

Purpose:

The purpose of this report is to provide an analysis of the impact and an exploration of the options that a reinvestment of Provincial funding would have on the Homes for the Aged.

Funding Sources, Financial Implications and Impact Statement:

The Ministry of Health has confirmed additional funding for long-term care facilities provided that the funding is used to create professional nursing jobs. The Homes for the Aged Division is seeking City Council approval to increase the 1999 operating budget by $697,000.00 (gross). There is a requirement for these new funds to be used specifically for the purpose of enhancing professional nursing services. The funding represents a permanent adjustment to long-term care facility funding from the Ministry of Health and does not result in an increase in municipal net contribution.

Recommendations:

It is recommended that:

(1) the 1999 operating budget of the Homes for the Aged be increased by $697,000.00 to enable the Division to access additional Provincial funding, which is available to enhance nursing services;

(2) this report be referred to the Community Services Committee for discussion of the policy issues and options outlined herein; and

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

Council Reference/Background/History:

During the Budget Committee's review of the Homes for the Aged Division's 1999 operating budget, it was requested that the Division report to the Community and Neighbourhood Services Committee and the Budget Committee on the significant loss of Provincial funding since 1996. The request was made in light of the Federal government's February 16, 1999 announcement that stated that transfers to the provinces and territories were to increase over the next five years by $11.5 billion through the Canada Health and Social Transfer (CHST).

In the Federal government's announcement, Finance Minister Paul Martin stated that a further $1.4 billion will be invested over the next three years to strengthen Canada's health system through research and innovation, health information, improved health services for First Nations, and prevention. The announced increases effectively restore Federal transfer payments for health care to levels that were in effect when the present government came to power.

Accordingly, the Budget Committee directed staff to study and report back at a subsequent meeting the impact that a restoration of Provincial subsidy would have on the Division if funding were to be restored to the 1996 subsidy level. The report was to include options of expanding the number of available beds, improving the personal care level, as well as other service restructuring restorations.

Comments and/or Discussion and/or Justification:

Long-Term Care Reform:

For many years, the long-term care (LTC) system in Ontario has been under tremendous pressure to reform. In the early 1990s, the Provincial government brought together long-term care facility and community programs under one new administrative structure. These programs had previously been the responsibility of separate Ministries, even though the programs served essentially the same client base. In the past, homes for the aged were the responsibility of the Ministry of Community and Social Services and nursing homes were the responsibility of the Ministry of Health. The Ministry of Health is now fully responsible for the funding and administration of all long-term care programs.

During the years that homes for the aged were under the Ministry of Community and Social Services, they were encouraged to design large facilities and dramatically expand and enrich the programs and services provided to their residents. Many municipalities and some charitable boards took advantage of this support and the cost sharing arrangements with the province to enhance their operations, resulting in higher per diems than other sectors of LTC facility care. To achieve some control of these costs, capping on Provincial contributions was introduced in 1989 in cases where the extended care per diem exceeded the Provincial average.

When the Long-Term Care Statute Law Amendment Act, 1993 (Bill 101), an Act to amend the three long-term care facility Acts, came into effect on July 1, 1993, the Province introduced a red-circling provision. Homes for the Aged were guaranteed to have their current level of care and staffing protected during the transition to a funding system that was to be based on resident care needs. Because of Provincial funding constraints, the long-term care system was able to fund only facilities with an extremely modest per diem of $79.61 in 1993. For the Toronto Homes for the Aged, this created a significant shortfall because the Division's operating per diem was $147.58 at that time. This represented approximately $25.0 million in red-circle funding for the Toronto Homes for the Aged.

When the Province determined it would take too many years for the LTC system to be equalized, the Ministry of Health decided to eliminate red-circling by phasing it out over a two to four-year period. The elimination of red-circle funding commenced on June 1, 1996. Of Toronto's 10 Homes for the Aged, five Homes continue to receive a moderate amount of red-circle funding. Red-circle funding accounts for only $1.6 million of the Division's 1999 operating budget revenue. However, the final reduction in red-circle funding has been effectively offset as a result of the recently announced increase in level of care funding.

Toronto Homes for the Aged:

Historically, Toronto's Homes for the Aged have cared for residents who other facilities and service providers find difficult to manage. The average resident in a Toronto Home has three to five chronic diseases, including heart disease, chronic obstructed lung disease, kidney/liver organ failure and other debilitating diseases. Seventy percent of the Homes' residents are cognitively impaired with dementia diseases such as Alzheimer's Disease.

Toronto's Homes for the Aged Division has a recognized history of and commitment to client-centred, interdisciplinary care and quality of life issues. In response to this commitment, the Division historically staffed at a fairly high level, particularly in the nursing, recreation, rehabilitation, and social work areas. Prior to 1993, both the Province and Council supported the enhancement of staffing levels, based on a commitment to providing vulnerable seniors with quality care and quality of life. In more recent years, affordability has become an issue, and the level of care and service has been substantially reduced.

The Homes for the Aged Division has been proactive over the past six years in adjusting to the new Provincial funding system. The Division needed to realize significant budget savings during that time in order to respond to the continuing financial pressures of reduced funding. In addition to reduced Provincial funding, the Division's municipal contribution has been decreased by $9.7 million or 29.6 percent since 1993. Expenditure reductions primarily focused on cost-controls and improved resource utilization. Net savings were realized through program restructuring and staff downsizing.

A comprehensive management plan that restructured the organization, streamlined operations, delayered management, identified numerous operational efficiencies, maximized revenue and formed strong community partnerships was implemented. The plan responded to the need for affordability and spending restraint, but did not abandon the concepts of quality, public service, and public accountability, concepts that the community clearly expects from the municipality.

Management identified numerous innovative and creative approaches to maintaining quality services for our clients during a time in which the Division experienced a significant loss of funding. The ways in which the Homes' services are delivered and resources are allocated have been reviewed and improved. The Division's long term plan contained the expectation that level of care facility funding would be adjusted to more accurately reflect the true cost of providing care and services to seniors.

New management levels and staffing standards were introduced across the Division and new sources of revenue identified. A client-centred approach to care and service was maintained as efficiencies were implemented in all areas of the Homes' operations. As the Division restructured, the focus on customer service remained. The Division continues to plan strategically and improve operationally in order to maintain effectiveness in a more diverse, competitive, and changing long-term care environment.

As part of the Division's strategic planning process, the following options are offered for consideration:

Option 1 - Expanding the Number of Beds:

On April 29, 1998, Ontario's Premier and Minister of Health jointly announced the Province's Multi-year Investment Plan for Long-Term Care. The investment plan involves the commitment of $1.2 billion annually to expand and improve long-term care services across Ontario. This infusion of redirected monies from hospital services adds 20,000 new beds into homes for the aged and nursing homes. The Province also targeted money for rebuilding and renovating more than 100 older facilities to comply with the new long-term care facility design standards which were released at the beginning of May 1998.

On May 1, 1998, the Ministry of Health released the allocated figures for facility and community reinvestments. For facility-based care, 5,837 new beds (out of the 20,000 Provincial figure) have been allocated for the Toronto region over the next six years. This amounts to a $190.9 million reinvestment. A request for proposal process was conducted by the province in mid-1998 for 2,200 beds in Toronto (6,700 beds across Ontario). The call was open to both the non-profit and for-profit sectors. Although the City of Toronto did not bid on any new beds, the Toronto Homes for the Aged Division provided consulting services to Doctors' Hospital in the development and presentation of their proposal. The Doctors' Hospital bid was strengthened by the Division's offer to provide consulting services for a multi-year period while Doctors' Hospital developed their own expertise in long-term care. Doctors' Hospital was awarded 200 long-term care beds.

The recently announced second phase of the Ontario government's six-year expansion plan will increase the long-term care system by a further 5,790 beds throughout various regions across the province, including the City of Toronto, where there are 744 beds available. A further 2,893 beds will be offered within Toronto in future phases of the expansion plan. Proposals during this phase must be submitted by 12:00 noon on July 30, 1999.

Level of care funding has been enhanced in recent years. A Home for the Aged with a Provincial average case mix index of 100 will receive per diem funding of $95.64. If the City's 1996 funding level were to be restored by means of the City of Toronto pursuing new long-term care beds, the City could consider submitting a bid to acquire 200 new long-term care beds, and thereby open a new Home for the Aged. This option would require the City to make a capital investment of approximately $12.0 million and also to restore a portion of the Division's previously achieved net operating savings in order to sustain quality and service levels consistent with the City's other 10 Homes for the Aged.

Option 2 - Improving the Personal Care Level:

Following the Federal Budget, the Ontario Government announced new investments in health nursing services. On March 17, 1999, Long-Term Care Minister Cam Jackson and Health Minister Elizabeth Witmer announced $20.0 million in annual funding to increase the number of frontline nurses available in long-term care facilities.

The additional funding available to long-term care facilities is being provided to enhance support for professional nursing staff and must be used to create professional nursing jobs. This represents a permanent adjustment to long-term care facility funding and will not result in a municipal contribution. For the Toronto Homes, the annualized funding enhancement is approximately $1.0 million. However, in order to access these funds the Homes for the Aged Division requires City Council's approval to increase the 1999 operating budget by $697,000.00 for nursing and personal care. The Ministry of Health has implemented stringent reporting requirements to ensure that these new funds are directed solely towards enhancing the nursing and personal care of residents.

Staff are very pleased regarding the newly announced funding for nursing services, as it provides the first opportunity for a significant number of years to marginally enhance the level of nursing care provided to residents, rather than to continue another year of nursing reductions. Senior management have not yet determined the best allocation of the available funding, and will utilize data from the various Homes (including information related to the classification of resident need, feedback from satisfaction surveys, etc.) to make final decisions. However, senior management's initial opinion is that the best value would be realized by utilizing the funding to increase both registered nurse and registered practical nurse hours (up to 10 percent of the available funding can be used for other nursing expenses, such as the nursing supplies required to deliver more complex care). The exact number of registered nurse versus registered practical nurse hours would vary on an individual Home basis, according to the needs assessment of that Home. Initial estimate is that the funding would allow for the increase of approximately 15 nursing FTEs across the 10 Homes.

It is hoped that the recent nursing announcement is the first of a series of reinvestments in long-term care. As long-term care facilities are expected to deal with more and more residents with serious health conditions and complex continuing care requirements, it will be imperative for the Ministry of Health to reinvest health savings into the long-term care system. Other minor increases in base funding are currently being planned by the Ministry of Health. Moving into the year 2000, the opportunity will exist for the Division to begin receiving Provincial funding increases rather than reductions in subsidy since the final phase of red-circle funding elimination will have been implemented.

Senior management has been actively involved in on-going discussions with the Ministry of Health to secure additional permanent funding for the Homes' program. As a result, it is anticipated that new monies will be made available to the City within the next year. This will possibly enable the Division to restore some of the previously eroded care levels.

Option 3 - Other Service Restructuring Restorations:

In response to the funding pressures in recent years, the Division has been required to reduce the service level of certain programs that serve to enhance the quality of life of residents. These services, although not all considered mandatory by the Ministry of Health, are considered by the Division to be essential for residents' health and sense of general well-being. The services that fall into this category are typically those funded in the "programs and support services envelope", and include services such as recreation, rehabilitation, complementary care, social work, spiritual and religious care, volunteer services, etc. If funding was restored to the Division, management would target some of the restored funding to expand service in these areas.

For example, the value of rehabilitation services (i.e., rehabilitation workers, occupational therapists, physiotherapists) to residents in the Homes is unquestionable, as it relates to the achievement of the Division's goal of promoting residents' independence, maintaining/improving residents' functional abilities (including behaviours), and preventing/delaying deterioration due to the natural aging process or chronic disease. An increase in rehabilitation service would add value to the Division's overall care and service delivery, particularly as the acuity of residents' care needs continues to increase.

Second, over 137,000 hours of volunteer services were contributed amongst the 10 Homes in 1998. This level of volunteerism far exceeds the average rate of volunteer participation amongst most other providers. The Division believes that additional staff support in the area of volunteer recruitment and coordination would help the homes to realize increased volunteer involvement and volunteer satisfaction, which directly impacts on resident satisfaction. Without question, volunteerism provides residents with an important linkage to the community. In return, community volunteers augment residents' quality of life and contribute substantial dollars through their fundraising initiatives.

Quality of life issues are also addressed by the provision of recreational programs and complementary care services (e.g., massage therapy, music therapy, art therapy, aromatherapy). Both of these services focus on residents as individuals and contribute to their psychosocial and physical wellbeing. In the past academic year, the Division has been able to offer student placement to a number of complementary care students, and these services have been exceptionally well received by residents and their families. Senior management is currently exploring the feasibility of adding complementary care services, on a more regular basis, if increased funding becomes available to cover the costs of same. Likewise, resident and family feedback provides evidence that both of these groups would like to see an expansion of recreation services, particularly in the evening hours and on weekends.

Next, an ever-increasing emphasis for the Division is the critical need to support staff by ensuring that they have access to both on-site and off-site educational offerings, in order to assist them gain and maintain the skills required to competently provide care and service to the Homes' residents and families. Individuals admitted to the Homes are frailer, and have more complex care requirements than several years ago. The Homes are becoming the "new" chronic care facilities, and the Division believes that it should take a proactive role in providing ways and means for staff to upgrade their skills.

Senior management is in the process of confirming a plan, identifying which programs and service areas should be expanded, as a priority, in order to add the most value to residents' lives, if some of the past funding is restored. The cost associated with restoring a portion of the residents' programs and support services would be minimal with substantial returns being measured in the provision of quality care to our residents.

Conclusion:

Over the past six years, the Division has been extremely successful in reducing costs and maintaining quality, in response to the funding reductions imposed. However, senior management has the philosophical belief that seniors residing in long-term care facilities deserve a higher level of care and service, particularly in the nursing and programs and services areas, than is supported through current Provincial funding and/or policy. Staff have done a laudable job over the past number of years; however, they have become increasingly more frustrated with their inability to provide the high level of attentive, individualized care that they believe the elderly are entitled to.

For this reason, if there is a potential to achieve further restoration of funding, it would be management's preferred direction to expand the level of care and service provided to the residents currently cared for in the Division's 10 Homes. Prior to the introduction of any resource expansion, it would be management's intention to implement new performance measures, in order to track, manage, and measure efficiencies, effectiveness, and satisfaction.

On the other hand, if City Council made a decision to direct staff to explore the possibility of adding beds to the Homes for the Aged Division's system, immediate action would be required, as the Ministry of Health's current Request for Proposals (RFP) for new long-term care beds closes on July 30, 1999 at 12:00 noon. Based on current information, there is reason to believe that there will not be another RFP released until at least 2001.

Contact Name:

Reg Paul, Director, Financial and Administrative Services, Tel: 392-8896; Fax: 392-4180; E-mail: reg_paul@toronto.ca.

The Strategic Policies and Priorities Committee also submits the following communication (May 31, 1999) from Ms. Anne Dubas, President, Local 79, Canadian Union of Public Employees:

This report provides information on potential sources of additional funding for the Homes for the Aged. It notes that there will be a Request for Proposals (RFP) for long-term care beds issued by the Provincial government, with a July 30, 1999 deadline (option 1).

A new Home for the Aged in an area of the city which is presently under-served would be a proud asset for Toronto. The downloading of expenses to the City by the Province has had a negative impact o n our infrastructure. By responding to this RFP, we will gain a long-term investment which will enhance the infrastructure - paid for by the Province.

We recognize that it will result in additional operating costs, but the fact is this will probably be the last RFP until at least the year 2001. If we shut the door now by not taking advantage of this opportunity, then will not be serving the elderly on the long waiting lists in the community.

The Homes for Aged Division has the expertise to make a successful application for some of these new long-term care beds. It teamed up with the Doctors' Hospital for the last round of allocations and the hospital was awarded 200 beds.

We believe that the City has a responsibility to plan strategically so that there are enough beds for seniors in the future. We would ask this Committee to recommend that the General Manager of the Homes for the Aged Division respond to this Request for Proposals before the July deadline.

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Ms. Anne Dubas, President, CUPE Local 79, accompanied by Ms. Carmen Smith, Secretary-Treasurer, appeared before the Strategic Policies and Priorities Committee in connection with the foregoing matter.

21

Use of Sponsorship Revenues from Molson's Sponsorship

Agreement for the Construction of Water Park Facilities

(Wards 19 and 25 - High Park and Don River)

(City Council on June 9, 10 and 11, 1999, adopted this Clause, without amendment.)

The Strategic Policies and Priorities Committee recommends the adoption of the Recommendations of the Budget Committee embodied in the following communication (May 26, 1999) from the City Clerk, subject to amending Recommendation No. (1) to read as follows:

"(1) the cost of the design and construction of two water parks located at Regent Park and at a new park site in the King and Dufferin Street area be fully funded from revenues obtained from the Molson's Sponsorship Agreement and through donations obtained from local businesses;"

Recommendations:

The Budget Committee on May 25, 1999, recommended to the Strategic Policies and Priorities Committee, and Council, the adoption of the report (May 4, 1999) from the Commissioner of Economic Development, Culture and Tourism, subject to the following:

(1) deleting Recommendation No. (1) and inserting in lieu thereof the following:

"(1) the cost of the design and contribution of two water parks located at Regent Park and at a new park site in the King and Dufferin Street area be fully funded from revenues obtained from the Molson's Sponsorship Agreement through donations obtained from local businesses;"

(2) adding the following:

"the future funding from sponsorship revenues for water park facilities be part of the Capital Budget process with the source of funding to be identified as being from sponsorship revenues."

The Budget Committee reports, for the information of the Strategic Policies and Priorities Committee and Council, having requested the Commissioner of Economic Development, Culture and Tourism to report back to the Economic Development and Parks Committee providing a plan as to the prioritization of the location of water parks keeping in mind the long list of wading pool renovations that are outstanding.

Background:

The Budget Committee had before it a communication (May 21, 1999) from the City Clerk advising that the Economic Development Committee on May 21, 1999, recommended to the Budget Committee, and Council, the adoption of the report (May 4, 1999) from the Commissioner of Economic Development, Culture and Tourism, and requested the Budget Committee to consider any adjustment to the Capital Budget in that regard and report thereon to the Strategic Policies and Priorities Committee for its June 1, 1999 meeting for consideration by Council of this matter on June 9, 1999.

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(Communication dated May 21, 1999, addressed to the

Budget Committee from the City Clerk)

Recommendations:

The Economic Development Committee recommends that the report (May 4, 1999) from the Commissioner of Economic Development, Culture and Tourism be adopted, and forwards this matter to the Budget Committee for consideration at its meeting on May 25, 1999 with respect to any adjustment to the Capital Budget, and, further, that the Budget Committee report to the Strategic Policies and Priorities Committee for its June 1, 1999 meeting for consideration by Council of this matter on June 9, 1999.

The Economic Development Committee reports, for the information of the Budget Committee, having requested the Commissioner of Economic Development, Culture and Tourism to report to the Economic Development and Parks Committee on:

(1) criteria on the selection of future sites for water park facilities, prior to consideration during the Capital Budget Process; and

(2) an inventory of the range of equipment and services provided by the water park facilities, and proposals to harmonize such facilities.

Background:

At its meeting on May 21, 1999, the Economic Development Committee had before it the report (May 4, 1999) from the Commissioner of Economic Development, Culture and Tourism regarding the Use of Sponsorship Revenues from Molson's Sponsorship Agreement for the Construction of Water Park Facilities (High Park and Don River - Wards 19 and 25), responding to the Economic Development Committee's request at its meeting on November 16, 1998, for a report on the provision of funding for the construction of new water parks in the City of Toronto, and recommending that:

(1) the costs for the design and construction of two water parks, located at Regent Park and at a new park site in the King Street and Dufferin Street area, be partially offset from revenues obtained from the 1999 Molson's Breweries Sponsorship Agreement for the sale of "Toronto's Own Beer"; and

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

The Committee also had before it a map depicting the present locations of water parks throughout the City.

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(Report dated May 4, 1999, addressed to the

Economic Development Committee from the

Commissioner of Economic Development, Culture and Tourism)

Purpose:

The purpose of this report is to respond to the Economic Development Committee's request at its meeting held on November 16, 1998, for a report on the provision of funding for the construction of new water parks in the City of Toronto.

Funding Sources, Financial Implications and Impact Statement:

The revenues obtained from this sponsorship agreement will partially offset the cost of two water park facilities.

Recommendations:

It is recommended that:

(1) the costs for the design and construction of two water parks, located at Regent Park and at a new park site in the King Street and Dufferin Street area, be partially offset from revenues obtained from the 1999 Molson's Breweries Sponsorship Agreement for the sale of "Toronto's Own Beer"; and

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

Comments:

At its meeting of November 16, 1998, the Economic Development Committee requested that the Commissioner of Economic Development, Culture and Tourism report on the feasibility of allocating revenues from the proposed sponsorship agreement between the City of Toronto and Molson's Breweries for the sale of "Toronto's Own Beer" for the construction of new water park facilities in the City.

The proposed sponsorship agreement was approved by City Council at its meeting of February 2, 3 and 4, 1999, and has been signed by both parties. Revenues from this agreement, in the amount of $150,000.00, are currently available to offset the design and construction of a water park facility in the Regent Park Housing Complex (in the Dundas Street and River Street area), which would involve retrofitting an existing wading pool to a water play facility.

The construction costs of another water park facility, in a new park site in South Parkdale (in the King Street and Dufferin Street area) would also be partially offset by these sponsorship funds. The remainder of the costs for this facility would be offset by donations obtained from local businesses in the area.

The use of these funds for the development of two water park facilities would be very beneficial to the local communities they would serve. The numerous requests for these types of facilities could not be met in the 1999 Capital Budget Program. Six of these facilities are funded in this year's budget, none of which will be located in the former City of Toronto. These two projects will serve two older neighbourhoods characterized by high densities and a high proportion of families with children.

These facilities could not be built otherwise and would have to be included in the list of projects to be considered in next year's Capital Budget. If approved, these projects would be expedited so they would be open in time for the 1999 summer season.

The five-year sponsorship agreement with Molson does not stipulate how the revenues generated from the sale of "Toronto's Own Beer" must be spent, nor does it require any on-site recognition of Molson's Breweries as sponsor. The Department will report to this Committee on the best use of these funds on an annual basis for the duration of the agreement.

Conclusion:

It is recommended that the revenues obtained from the Molson's Sponsorship Agreement be allocated to two water park projects, one in Regent Park and the other in South Parkdale (in the new park located near King and Dufferin Streets). If approved, these projects, which are very beneficial to their communities, will be expedited so they are operational in time for the 1999 summer season.

Contact Name:

Frank Kershaw, 392-8199.

(Copies of the map depicting the present locations of water parks through out the City, referred to in the foregoing report were forwarded to all Members of Council with the June 1, 1999, agenda of the Strategic Policies and Priorities Committee and a copy thereof is also on file in the office of the City Clerk.)

22

1999 Operating Budget - Follow Up Items

(City Council on June 9, 10 and 11, 1999, amended this Clause by deleting Recommendations Nos. (1)(a) and (b) embodied in the report dated May 27, 1999, from the Chief Financial Officer