Board of Directors Meeting - January 26, 2017

Agenda

1. Chair’s Remarks

Action: Information

Pre-read: Verbal Report 5 minutes

Presenter: Chair

2. Consent agenda

Action: -

Pre-read: -

Presenter: Chair

2a. Approval of Public Meeting Agenda

Action: Approval

Pre-read: Agenda

Presenter: Chair

2b. Chair’s Poll re: Conflict of Interest

Action: Declaration

Pre-read: Agenda

Presenter: Chair

2c. Confirmation of Board of Directors’ Public Meeting Minutes of December 8, 2016

Action: Approval

Pre-read: Minutes

Presenter: Chair

2d. Business Arising from the Public Meeting Minutes and Action Items Update

Action: Information

Pre-read: Action item list

Presenter: Chair

2e. City and TCHC Staff – Strategic and Operational Meetings

Action: Information

Pre-read: TCHC:2017-05

Presenter: Interim President and CEO

2f. Internal Audit: 2017 Work Plan

Action: Approval

Pre-read: TCHC:2017-04

Presenter: Chair, BIFAC

2f. Internal Audit: 2017 Work Plan

Action: Approval

Pre-read: TCHC:2017-04

Presenter: Chair, BIFAC

3. RSC Chair’s report

Action: Information

Pre-read: Verbal report 5 minutes

Presenter: Chair, RSC

4. GCHRCC Chair’s report

Action: Information

Pre-read: Verbal report 5 minutes

Presenter: Chair, GCHRCC

5. BIFAC Chair’s report

Action: Information

Pre-read: Verbal report 5 minutes

Presenter: Chair, BIFAC

5a. Notice of Closure of Units Policy

Action: Approval

Pre-read: TCHC:2017-01 10 minutes

Presenter: General Counsel & Corporate Secretary

5b. Leslie Nymark: Transfer of Lands of Toronto Region Conservation Authority

Action: Approval

Pre-read: TCHC:2017-02 10 minutes

Presenter: Vice-President, Development

5c. Lawrence Heights: Transfer of Development Block for Market Condominiums for Phase 1B

Action: Approval

Pre-read: TCHC:2017-03 10 minutes

Presenter: Vice-President, Development

5d. Policy Approval – Fair Wage Policy (Deferred from December 8, 2016 Meeting)

Action: Approval

Pre-read: TCHC:2017-03 10 minutes

Presenter: Vice-President, Development

TERMINATION

Minutes

The Board of Directors of the Toronto Community Housing Corporation held a public meeting on January 26, 2017 at 9:57 a.m. in in the Main Floor Conference Room at 931 Yonge Street, Toronto and via teleconference.

Directors in Attendance:

Bud Purves (Chair)

Councillor Ana Bailão

Robert Carlo

Councillor Frank Di Giorgio

Councillor Michael Ford

Vincent Gasparro

Joseph Kennedy

Colin Lynch

Kevin Marshman (Vice Chair) (via teleconference)

Pamela Taylor

Catherine Wilkinson

Directors Absent:

Councillor Joe Cressy

Linda Jackson

Management present:

Cathy Barker, Vice President, Human Resources

Angela Cooke, Vice President, Resident and Community Services

Leslie Gash, Chief Development Officer

Rose-Ann Lee, Chief Financial Officer & Treasurer (Acting)

Ismail Ibrahim, Director of Compliance and Legal Counsel

Mark Johnson, General Counsel & Corporate Secretary

Hugh Lawson, Director, Strategic Planning and Stakeholder Relations

Graham Leah, Vice President, Asset Management

Bruce Malloch, Director, Strategic Communications

Mark McDonald, Vice President, IT

Lisa Murray, Manager, Media and Public Relations

Sheila Penny, Vice President, Facilities Management

Greg Spearn, President & Chief Executive Officer (CEO) (Interim) / Chief Development Officer

Wayne Tuck, Chief Operating Officer (Interim)

A quorum being present, the Chair called the meeting to order and Ms. Charmaine Zina served as recording secretary.

Item 1 – Chair’s Remarks

The Chair welcomed everyone to today’s Board meeting and advised that the meeting will begin with the public session and then the Board will proceed with the confidential session.

Welcome to Councillor Michael Ford

The Chair announced that Councillor Michael Ford, who joined the TCHC Board on January 1st, is attending his first Board meeting today. Councillor Ford fills the vacancy created when Councillor Raymond Cho resigned last year after his election to the Ontario legislature. The Chair welcomed Councillor Ford, and advised that there will be discussions with him to determine which committees he would like to be a part of going forward.

The Chair identified the following items that were approved in the confidential session at the December 8, 2016 Board meeting:

Building Investment, Finance and Audit Committee

The Board approved management’s plan to close two townhome blocks on Firgrove Crescent in 2017 because of their rapidly deteriorating structure which poses a safety risk for the families who live there. The closures will require the relocation of up to 108 households. Affected residents and the broader Firgrove community were notified of the decision in December. The Board reiterated the importance of diligence in carrying out this project and the importance of trying to get this in less than 18 months. 

• The Board approved the selection of Tridel as the developer partner for Phase 2 of the Alexandra Park revitalization. Tridel is the Phase 1 developer partner at Alex Park and the partner at Leslie Nymark. They emerged as the successful bidder through a competitive Request for Proposals process that began last summer and which was supervised by a Fairness Commissioner throughout the evaluation process.
• The Board approved a land transfer for the purposes of building market condominiums to DiamondCorp and Metropia, the developer partners in the 250 Davenport revitalization project.

Lastly, the Board approved management’s plan to use a sample-based audit for rent-geared-to-income (RGI) calculations, and to transfer this function to the Chief Internal Auditor’s department. The plan maintains effective oversight while freeing up staff resources to strengthen frontline services.

CEO search

Briefly, regarding the Board’s search for a President and Chief Executive Officer: the process is continuing and remains on track to be completed by the end of March.

The Chair identified the following items to be discussed in the public session:

• Chair’s Reports. The Chairs of the Board committees will each provide a verbal report of their committee’s activities

Building Investment, Finance and Audit Committee

• A new policy that will establish when the Board of Directors is to be provided with notice prior to the permanent closure of residential units or buildings.
• An update of TCHC’s Fair Wage Policy. At the direction of City Council, TCHC maintains a fair wage policy to ensure all vendors doing business with us pay a fair wage to their employees. This is the first update of the policy since 2006.
• The transfer of the lands known as Block 4 in Leslie Nymark to the Toronto Region and Conservation Authority, which will be used for parks purposes. Approval of the land transfer is a requirement of the provincial government.
• The transfer of the lands in Lawrence Heights where the developer partner Heights Development Inc. will build the next market condominium building as part of the revitalization. Approval of the land transfer is a requirement of the provincial government.

President’s Monthly Report. Mr. Spearn will present the President’s Monthly Report for November 2016, which describes how the company is doing in meeting its public commitments and organization priorities.

Item 2A – Approval of Agenda and Review of Agenda Order

The agenda was approved as circulated. All Consent Agenda Items were held.

Motion carried

ON MOTION DULY MADE by Ms. Taylor, seconded by Mr. Kennedy and carried, the Board of Directors approved the agenda.

Item 2B – Chair’s Poll Re: Conflict of Interest

The Chair requested members of the Board of Directors to indicate any agenda item in which they have a conflict of interest, together with the nature of the interest. No conflicts were declared.

Item 2C – Confirmation of Board of Directors’ Public Meeting Minutes of December 8, 2016

The Board of Directors had before it the draft Board minutes for December 8, 2016.

Motion carried

ON MOTION DULY MADE by Ms. Taylor, seconded by Mr. Purves and carried, the Board of Directors confirmed the above-captioned minutes without amendments.

Item 2D – Business Arising from the Public Meeting Minutes and Action Items Update

Motion carried

ON MOTION DULY MADE by Ms. Taylor, seconded by Mr. Purves and carried, the Board of Directors received the report for information with the following amendments:

TCHC:2016-56 – Monthly President’s Report – December 8, 2016

• Steps being taken to address increase in vacancy rates and arrears trends (report to BIFAC, RSC then the Board).

TCHC:2016-05 Board Procedures – February 22, 2016

Board requested Management look into restoring historical committee and Board reports and minutes prior to 2016

Regarding TCHC:2016-05 Board Procedures – February 22, 2016, the Board requested that Management also look into restoring on-line access for the public to Board reports and minutes from before 2016. Management noted that they will look into this possibility and respond to the Board.

The Board requested the Board Chair clarify at the next Board meeting as to whether items on the action items list are open for discussion as part of the agenda or whether the discussion is to be limited to the progress of the action items and when responses are expected.

Item 2e – City and TCHC Staff: Strategic and Operational Meetings, TCHC:2017-05

The Board of Directors had before it the above-captioned report (TCHC:2017-05) from the President and Chief Executive Officer (Acting).

The Board and Management discussed the report and it was noted that City meetings relating to Regent Park Block 16 and 17 appeared to be missing. Management will look into and make any necessary corrections.

Motion carried

ON MOTION DULY MADE by Ms. Taylor, seconded by Mr. Purves and carried, the Board of Directors received the report for information.

Item 2F – Internal Audit: 2017 Work Plan, TCHC:2017-04

The Board of Directors had before it the above-captioned report (TCHC:2017-04) from the BIFAC Chair.

The BIFAC Chair noted that the BIFAC continues to discuss with the Chief Internal Auditor how several items carried over from 2016 will be addressed going forward, but those determinations do not impede the approval of the 2017 work plan that is before the Board.

The Board raised the importance of ensuring audit items discussed at BIFAC are also brought to the RSC if they directly impact tenant.

Motion carried

ON MOTION DULY MADE by Ms. Taylor, seconded by Mr. Purves and carried, the Board of Directors unanimously approved the recommendations in this report.

Item 3 – Resident Services Committee (RSC), Chair’s Report

No comments or remarks from the Chair of RSC were received at this time, due to her absence.

The Board Chair relayed comments the RSC Chair who was unable to attend today’s meeting. The Board Chair relayed that there has been no RSC meeting since last Board meeting, but that the following items are among those slated for the meeting on February 6th:

• update from Angela Cooke on the Residential Services portfolio;
• update and the Resident Charter;
• review of OCHE Performance – 2016; and
• review of items on the 2017 RSC work plan.

Item 4 – Governance, Communications, Human Resources and Compensation Committee (GCHRCC), Chair’s Report

The Chair of the GCHRCC provided a verbal update to the Board on the activity at GCHRCC.

There has been no meeting since the last Board meeting. The next meeting is scheduled for February 3rd, and topics of discussion include the following:

• Workplace Violence Policy;
• Harassment Policy;
• Conflict of Interest (Board) Policy;
• GCHRCC and committee work plans; and
• The possibility of reinstatement board appraisal (function of Board as a whole).

Item 5 – Building Investment, Finance and Audit Committee (BIFAC), Chair’s Report

The Chair of the BIFAC provided a verbal update to the Board on the activity at BIFAC. Mr. Lynch advised the Board that BIFAC met once since the last Board meeting.

Item 5A – Notice of Closure of Units Policy, TCHC:2017-01

The Board of Directors had before it the above-captioned report (TCHC:2017-01) from the General Counsel and Corporate Secretary.

Mr. Johnson presented the report, answered questions raised by the Board and accepted feedback from the Board. He clarified the intention of the policy was to determine when the Board needs to be notified of unit closures rather than to address approval of unit closures.

The following were among the recommendations d for revisions to the policy:

• Decreasing the numerical amount in the definition of “material”.
• Including material impact on services level and reputational impact.
• Including timelines on when notice is to be given to the Board.
• Reference to closures being a last resort.
• Reference to applicable legislation, other related tenant policies, and requirements for notice to the City.
• Reflecting an approval process by the Board to close units in addition to when notice is to be provided to the Board (i.e. when the Board needs to approve closures).
• Ensuring that a situation where the closure of many individual units in a building over a short period of time is captured in the notice requirements...

A motion was made to send the policy back to the General Counsel & Corporate Secretary to be re-drafted to address the comments made by the Board and then brought back to BIFAC and the Board for review.

Motion carried

ON MOTION DULY MADE by Mr. Gasparro, seconded by Mr. Marshman and carried, the Board of Directors directed that the policy be sent back to the General Counsel & Corporate Secretary for re-drafting to address the comments made by the Board and that an updated draft be brought to the BIFAC and Board for review.

Item 5B – Leslie Nymark: Transfer of Lands of Toronto Region Conservation Authority, TCHC:2017-02

The Board of Directors had before it the above-captioned report (TCHC:2017-02) from the Vice-President, Development.

Motion carried

ON MOTION DULY MADE by Ms. Taylor, seconded by Mr. Gasparro and carried, the Board of Directors unanimously approved the recommendations in this report:

1. Authorize the transfer of: Block 4 on the Draft Plan prepared by J.D. Barnes Ltd, dated July 5, 2016 from Toronto Community Housing Corporation (“TCHC”) to Toronto Region and Conservation Authority (“TRCA”) and,
2. Authorize the Interim President and Chief Executive Officer (or designate) to negotiate an agreement of purchase and sale with TRCA, for nominal value, upon such terms and conditions as may be acceptable to the Interim President and Chief Executive Officer (or designate) and execute any and all documents as may be necessary to give effect to the recommendations.

Item 5C – Lawrence Heights: Transfer of Development Block for Market Condominiums for Phase 1B, TCHC:2017-03

The Board of Directors had before it the above-captioned report (TCHC:2017-03) from the Vice-President, Development.

The Board requested that Management expedite scheduling the meeting to brief the Board on all revitalization projects given that schedules for Q1 2017 are becoming busy.

Motion carried

ON MOTION DULY MADE by Mr. Lynch, seconded by Mr. Gasparro and carried, the Board of Directors unanimously approved the recommendations in this report:

1. Authorize the transfer of the lands located on Block 1 outlined in red on the draft Plan of Subdivision dated September 27, 2016 (Attachment 1), as may be amended and prepared by Stantec Geomatics Ltd. (the “Subdivision Plan”), from Toronto Community Housing (“TCH”) to Heights Development Inc. or Yorkdale Residences II Inc.; and
2. Authorize the President and Chief Executive Officer (or designate) to execute any and all documents as may be necessary to give effect to the above recommendation.

Item 5D – Policy Approval: Fair Wage Policy, TCHC:2017-07

The Board of Directors had before it the above-captioned report (TCHC:2017-07) from the Director of Compliance and Legal Counsel.

Motion carried

ON MOTION DULY MADE by Mr. Lynch, seconded by Mr. Gasparro and carried, the Board of Directors unanimously approved the recommendations in this report:

1. adopt the Fair Wage Policy as amended, together with the updated Fair Wage Schedule of rates appended thereto;
2. direct the Senior Director of Strategic Procurement or designate to review the Fair Wage Schedules from time to time and make any amendments that may be required in order to ensure that the rates set out in the schedules reflect the prevailing wage rates consistent with the City of Toronto Fair Wage Office, and where those rates are unavailable, to make amendments consistent with the construction industry in the geographical area of the City of Toronto; and
3. authorize the appropriate staff to take the necessary actions to give effect to the above recommendations.

Item 5E – Regent Park Block 16 and 17N – Update on Financing from City, Verbal Update

Mr. Spearn presented the Board with a verbal update on the above-noted matter. He advised that letters were sent out to the provincial and federal ministers notifying them of the shortfall in funding for these 2 projects.

The Board was further advised that a report by the City’s Chief Financial Officer was brought during the City budget process recommending that the City provide a loan guarantee and pay the interest and principal on the $106m loan required to finance these projects. The report will now be brought to Executive Committee and then City Council for approval.

The Board Chair requested that Management distribute the letters sent to federal and provincial ministers to the Board offline.

Motion carried

ON MOTION DULY MADE by Mr. Gasparro, seconded by Councillor Bailão and carried, the Board of Directors received the report for information.

Action Item:

• Management to report back on a draft E-Bike Policy. Items to be addressed include secure outside storage, resources to charge batteries, the impact on elevators, and related cost information.

Item 6 – Interim President and Chief Executive Officer’s Remarks

Mr. Spearn provided the following update to the Board on the MLSE LaunchPad: After months of planning and construction work, MLSE LaunchPad will officially open this afternoon. MLSE LaunchPad is an outstanding example of how TCHC’s continually improving the way we work with partners to bring programs to residents.

The 42,000-square-foot space that houses this new facility had sat empty and unused for more than two decades until this partnership with MLSE came together about two years ago. Thanks to the generous contributions of community and corporate partners totaling more than $6 million, this space has been impressively transformed into a state-of-the-art sports facility with a multipurpose gymnasium containing basketball, soccer and hockey spaces, classrooms, a teaching commercial kitchen and even a climbing wall.

MLSE will deliver programming at the facility seven days a week that will create positive outcomes for thousands of children, youth and families in TCHC communities. TCHC is working with MLSE Foundation to organize and host an exclusive event on Saturday, February 11, where TCHC’s residents can tour the facility and parents can sign up their kids for programs.

Item 6A – Monthly President’s Report, TCHC:2017-06

The Board had before it the above-captioned report (TCHC:2017-06) from the President & Chief Executive Officer (Acting).

Mr. Spearn presented the report and advised the Board that performance in November improved compared with October levels. Of TCHC’s 39 scorecard metrics with targets, more than two-thirds (or 27 metrics) improved or remained constant, and 12 metrics declined.

Mr. Spearn advised of the following results/trends in the Monthly President’s Report (MPR):

• Excess of Revenue over Expenses: year-to-date, TCHC has a $53.3-million excess of revenue over expenses on November 30, 2016. This is in contrast to the projected loss of $32.6 million which is a result of the timing of non-recurring items, such as gains on the sale of lands and the sale of standalone homes. In addition to the $21 million in credits received to October 31 under the Ontario Clean Energy Benefit program. It is not expected to continue in 2017 and future years.
• Capital Repairs: the capital repair program has completed $201.3 million in repairs year-to-date as of November 30, on more than 14,000 projects. TCHC expects that at least 92-per-cent ($230 million) of the $250 million in capital repair budget for 2016 will have been completed by year end however, will confirm the final amount in the December MPR.
• Community Safety: the Community Safety Unit conducted 78 joint patrols with the Toronto Police Service in October, exceeding the monthly target of 75 patrols. November was the fifth consecutive months that we increased our number of joint patrols.
• Customer Service: the number of elevator calls received by TCHC’s Client Care Centre more than doubled in November to over 7,000 calls, which resulted in a decline in service levels for elevator calls. The increased call volume was due to a flood that occurred at one of TCHC’s buildings near Jane & Lawrence, as well as technical issues at two of TCHC’s buildings in Scarborough. These issues have since been resolved and will not affect call volumes going forward
  
  On a positive note, service levels for tenant calls improved, both month-over-month and on a year-to-date basis. The average speed of answer for tenant calls from January to November 2016 improved by 12 seconds compared with the same period in 2015—a good sign that TCHC’s making progress in improving call wait times for tenants.
• Community Safety Response: Service levels for community safety calls declined in November as a result of a service disruption to the phone system that prevented the dispatch team from responding to calls for approximately 10 hours during the month. This issue has been resolved and the Community Safety Unit will mitigate similar service disruptions in future through its planned implementation of analog phones as an emergency back-up procedure, which will be in place in the first quarter of 2017.
• Service Requests: TCHC exceeded its target of containing 90-per-cent of emergency maintenance requests within four hours and again exceeded the target of closing 80-per-cent administrative service requests within two days. Service levels for routine maintenance requests closed within five (5) days improved slightly to 68-per-cent however, is still below target level of 80-per-cent.
• Vacancy: vacancy rates for rent geared-to-income (RGI) units decreased slightly in November to 2.79-per-cent, compared with 2.85 per-cent in October. TCHC’s market vacancy rate also decreased, from 3.8-per-cent to 3.6-per-cent. A quarter of the vacant units that are included in these rate calculations have already been leased and will have new tenants moving in over the next 60 days.
  
  TCHC’s Asset Management division is working to implement its planned vacancy management strategies aimed at lowering vacancies to the target rate of two per cent (2%). Market rental units were widely advertised on multiple websites in December, which we anticipate will attract a high volume of interest for our market units.

The Board and management discussed the reason for the increase in unit closures. Management advised that without adequate funding TCHC is not able to keep up with the pace of unit deterioration. Management further advised that spending on getting closed units back online varies depending on the unit and the project. Discussion ensued on whether it is preferable to spend on bringing closed units back or to spend on preventing other units from being closed.

The Board requested in future that attrition statistic for staff be included in the “Business Foundations” section of the report given the issue with staff vacancies in the corporation.

Motion carried

ON MOTION DULY MADE by Councillor Bailão, seconded by Ms. Wilkinson and carried, the Board of Directors received the report for information.

TERMINATION

The public meeting terminated at 11:00 a.m.