Building Investment, Finance and Audit Committee (BIFAC) Meeting - October 8, 2019

Agenda

10:00 - Chair’s Remarks

Action: Information

Pre-read: Verbal Report

Presenter: Chair

10:05 - Consent agenda

a. Approval of Public Meeting Agenda

Action: BIFAC Approval

Pre-read: Agenda

Presenter: Chair

b. Chair’s Poll re: Conflict of Interest

Action: Declaration

Pre-read: Agenda and Conflict of Interest Policy

Presenter: Chair

c. Confirmation of the Public Meeting Minutes of August 13, 2019

Action: BIFAC Approval

Pre-read: Minutes

Presenter: Chair

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

Action: Information

Pre-read: Action Item List

Presenter: Chair

e. PAC Awards and Revenue Contracts – Q3 2019

Action: Information

Pre-read: BIFAC:2019-76

Presenter: General Counsel & Corporate Secretary

f. Internal Audit Report: Vacancy Rate

Action: Information

Pre-read: BIFAC:2019-84

Presenter: Manager, Internal Audit

g. Status Update on Audit Recommendations from Internal Audit Reports

Action: Information

Pre-read: BIFAC:2019-85

Presenter: Manager, Internal Audit

Facilities Management Reports

10:15 - a. Contract Award: Building Envelope Repairs at Pelham Park (RFP 19218)

Action: BIFAC Approval

Pre-read: BIFAC:2019-77

Presenter: Vice President, Facilities Management (Acting)

10:25 - b. Direct Award: Fire Alarm Panel Replacement at 7 Locations

Action: BIFAC Approval

Pre-read: BIFAC:2019-78

Presenter: Vice President, Facilities Management (Acting)

10:40 - c. Contract Award: Demand Services for Duct and Vent Cleaning (RFP 18388)

Action: BIFAC Approval

Pre-read: BIFAC:2019-82

Presenter: Vice President, Facilities Management (Acting)

10:50 - Direct Award: Microsoft Enterprise Agreement Volume Licensing Enrolment

Action: BIFAC Approval

Pre-read: BIFAC:2019-81

Presenter: Vice President, Facilities Management (Acting)

11:05 - Fire Life Safety Program Update

Action: Information

Pre-read: BIFAC:2019-80

Presenter: Senior, Fire Life Safety & Risk Management

11:15 - Update on Tenants First

Action: Information

Pre-read: BIFAC:2019-75

Presenter: Manager, Strategic Planning

TERMINATION

Minutes

The Building Investment, Finance and Audit Committee (“BIFAC”) of Toronto Community Housing Corporation (“TCHC”) held a public meeting on October 8, 2019, in the Main Floor Conference Room, 931 Yonge Street, Toronto, and via teleconference, commencing at 10:05 a.m.

BIFAC Directors Present:    

Adele Imrie, Chair
Councillor Ana Bailão (by teleconference)
Amanda Coombs (by teleconference)
Brian Smith 
Nick Macrae 

Management Present:    

John Angkaw, Senior Director, Fire Life Safety & Risk Management
Karim Jessani, Manager, Internal Audit
Marilyn Lee, Senior Legal Counsel - Real Estate
Rose-Ann Lee, Chief Financial Officer and Treasurer
Kevin Marshman, President and Chief Executive Officer
Darragh Meagher, Interim General Counsel and Corporate Secretary 
Allen Murray, Vice President, Facilities Management (Acting)
Sheila Penny, Chief Operating Officer
Vincent Tong, Chief Development Officer
Lindsay Viets, Director, Strategic Planning and Stakeholder Relations
Joan White, General Manager, Seniors Housing Unit
Ceilidh Wilson, Assistant Corporate Secretary (Acting)

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

ITEM 1 CHAIR’S REMARKS 

The Chair welcomed everyone to the BIFAC meeting and thanked Board members for their attendance. It was noted that following the Board Chair’s direction to increase transparency, and with full support of the Chief Executive Officer and leadership team, BIFAC committed to move as many items into the public session as possible.

ITEM 2  APPROVAL OF CONSENT AGENDA ITEMS

The following items were not held for discussion:

• Item 2A – Approval of Confidential Meeting Agenda
• Item 2B – Chair’s Poll re: Conflict of Interest
• Item 2C – Confirmation of the Confidential Meeting Minutes of August 13, 2019
• Item 2D – Business Arising from the Confidential Meeting Minutes and Action Items Update
• Item  2G – Status Update on Audit Recommendations from Internal Audit Reports

The following item were held for discussion: 

• Item 2E – Q3 2019 – PAC Awards and Revenue Contracts
• Item 2F – Internal Audit Report: Vacant Rate

ITEM 2A  APPROVAL OF PUBLIC MEETING AGENDA 

Motion carried ON MOTION DULY MADE by Mr. Smith, seconded by Mr. Macrae and carried, BIFAC approved the public meeting agenda.

ITEM 2B DECLARATION OF CONFLICT OF INTEREST

The Chair requested members of BIFAC to indicate any agenda item in which they had a conflict of interest, together with the nature of the conflict. None was declared.

ITEM 2C CONFIRMATION OF THE AUGUST 13, 2019 PUBLIC MEETING MINUTES 

Motion carried ON MOTION DULY MADE by Mr. Smith, seconded by Mr. Macrae and carried, BIFAC approved 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 Mr. Smith, seconded by Mr. Macrae and carried, BIFAC received the above-captioned report for information.

ITEM 2E Q3 2019 – PAC AWARDS AND REVENUE CONTRACTS  BIFAC:2019-76
The above-captioned report was circulated to BIFAC members prior to the meeting. The General Counsel and Corporate Secretary was available to answer questions from BIFAC members.

Highlights of discussion:

• RFP-19104 – Training contract for CSU:

It was noted that this is a three year contract on compliance training for special constables, with an annual amount of under $705K. This expense was included in the Division’s Operating Budget.

Motion carried ON MOTION DULY MADE by Mr. Macrae, seconded by Councillor Bailão, BIFAC resolved to receive the above-captioned report for information.

ITEM 2F INTERNAL AUDIT REPORT: VACANCY RATE BIFAC:2019-84

The above-captioned report was circulated to BIFAC members prior to the meeting. The Manager, Internal Audit was available to answer questions from BIFAC members.

Highlights of discussion:

• It was noted that the rentable and non-rentable units are presented in separate categories in the report, as previously presented by Asset Management. There is no change to the process of vacancy rate calculation.

Motion carried ON MOTION DULY MADE by Mr. Macrae, seconded by Councillor Bailão, BIFAC resolved to receive the above-captioned report for information.

ITEM 2G STATUS UPDATE ON AUDIT RECOMMENDATINONS FROM INTERNAL AUDIT REPORTS BIFAC:2019-85

Motion carried ON MOTION DULY MADE by Mr. Smith, seconded by Mr. Macrae and carried, BIFAC received the report for information.

ITEM 3A CONTRACT AWARD: BUILDING ENVELOPE REPAIRS AT PELHAM PARK (RRP 19218) BIFAC:2019-77

The above-captioned report was circulated to BIFAC members prior to the meeting. The Vice President, Facilities Management (Acting) was available to answer questions from BIFAC members.

Motion carried ON MOTION DULY MADE by Mr. Macrae, seconded by Mr. Smith and carried, BIFAC considered the above-mentioned report and resolved to:

1. Approve the award of the work to Trinity Services for $2,697,048.00 (exclusive of taxes) for Envelope Repairs and Windows Replacement at Pelham Park Gardens (Pelham Avenue, Block 4 Units 12 to 35, and Block 6 Units 171 to 135 and, Block 2 Units 36 to 46, Dev. 46) based on the outcome of Request for Proposal (RFP) 19218; and

2. Authorize the appropriate staff to take the necessary actions to give effect to the above recommendation.
    
ITEM 3B DIRECT AWARD: FIRE ALARM PANEL REPLACEMENT AT 7 LOCATIONS  BIFAC:2019-78

The above-captioned report was circulated to BIFAC members prior to the meeting. The Vice President, Facilities Management (Acting) was available to answer questions from BIFAC members.

• Highlights of discussion:
• The contact was awarded to Tyco Integrated Fire & Security Canada (“Tyco”).
• It was explained that extra costs will incur if a different manufacturer is selected:
  • with Tyco, the cost will be about $86K per building;
  • with other provider, the cost is estimated to be $250K to redo everything in a building.
• Tyco is in good standing with TCHC in terms of their quality of services.

Motion carried  ON MOTION DULY MADE by Mr. Macrae, seconded by Mr. Smith and carried, BIFAC considered the above-captioned report and resolved to:

1. Approve the direct award to Tyco Integrated Fire & Security Canada for $600,600.00 (exclusive of taxes) for fire alarm panel replacement (design & construction) at the following 7 locations: 

• 93 Edgewood Avenue
• 59 Edgewood Avenue
• 110 Mornelle Court
• 90 Mornelle Court
• 3847 Lawrence Avenue East
• 3171 Eglinton Avenue East; and
• 3181 Eglinton Avenue East

2.    Authorize the appropriate staff to take the necessary actions to give effect to the above recommendation.

ITEM 3C CONTRACT AWARD: DEMAND SERVICES FOR DUCT AND VENT CLEANING (RFP 18388) BIFAC:2019-82

The above-captioned report was circulated to BIFAC members prior to the meeting. The Vice President, Facilities Management (Acting) was available to answer questions from BIFAC members.

Motion carried ON MOTION DULY MADE by Mr. Macrae, seconded by Mr. Smith and carried, BIFAC considered the above-captioned report and resolved to:

1. approve the award of the work up to $5,000,000.00 (exclusive of taxes) to provide on demand and preventive maintenance for duct and vent cleaning at the rates established based on the outcome of Request for Proposal (RFP) 18388 for a term of five years.
2. Authorize the appropriate staff to take the necessary actions to give effect to the above recommendation.

ITEM 4 DIRECT AWARD: MICROSOFT ENTERPRISE AGREEMENT VOLUME LICENSING ENROLMENT BIFAC:2019-81

The above-captioned report was circulated to BIFAC members prior to the meeting. The Vice President, Information Technology Services was available to answer questions from BIFAC members.

Highlights of discussion:

• This is a new contract with Microsoft. 
• The Microsoft Enterprise Agreement is a volume licensing program that offers the lowest overall pricing from Microsoft to public/government organizations with 500+ users, which is not available through a reseller.
• The product is required to support ITS’s strategy over the next 3 years.
• Taking into consideration credits TCHC will be receiving from Microsoft, the amount for approval is amended to $1.104M.

Motion carried ON MOTION DULY MADE by Mr. Macrae, seconded by Mr. Smith and carried, BIFAC considered the above-captioned report, as amended, and recommended the following for approval by the Board of Directors:

1. Approve the direct award to Microsoft Canada Inc. totaling $1.104M (exclusive of taxes) for TCHC’s enrolment into Microsoft’s Enterprise Agreement (EA) for access to Microsoft desktop applications and server software for a three-year term commencing on October 31, 2019 to October 30, 2022; and
2. Authorize the appropriate staff to take the necessary actions to give effect to the above recommendations

ITEM 5 FIRE LIFE SAFETY PROGRAM UPDATE  BIFAC:2019-80R

The above-captioned report was circulated to BIFAC members prior to the meeting. The Senior Director, Fire Life Safety & Risk Management was available to answer questions from BIFAC members. 

Highlights of discussion:

• Of the 235 Notices of Violations (“NOV’s”) received in 2019, 67% have been remediated and cleared, while the Fire Life Safety team continues to partner with Facilities Management and Asset Management in clearing the remaining open NOV’s.
• It was explained that the 33% of NOV’s that remain open (page 3 of report) are separate from any NOV’s issued by Toronto Fire Services.
• Staff has tracked NOV’s for both contract managed and direct managed buildings. More NOV`s are related to contract managed buildings.
• NOV’s do not include false fire alarms.
• Management to provide report on: 
  • false fire alarms and the impact on tenants’ wellbeing; 
  • what other housing providers are doing to respond to false alarms and applicability to our portfolio.

Motion carried ON MOTION DULY MADE by Mr. Smith, seconded by Mr. Macrae and carried, BIFAC resolved to receive the above-captioned report for information.

ITEM 6 UPDATE ON TENANTS FIRST BIFAC:2019-75

The above-captioned report was circulated to BIFAC members prior to the meeting. The Director, Strategic Planning and Stakeholder Relations was available to answer questions from BIFAC members. 

Highlights of discussion on asset transfers:

• Mortgage Substitutions
  • The discharges of Infrastructure Ontario (“IO”) mortgages registered against agency, uninhabited, rooming, and scattered houses and required property substitutions are proceeding according to schedule.
  • The first and second charges of those property substitutions are set to close with IO in October and December.
• Severances
  • TCHC, with assistance of external legal counsel, continue the process regarding Agency and Uninhabited Houses that require a severance.
• Agency and Uninhabited Houses
  • There was a delay with the City sending draft agreements of purchase and sale (“APS”) to all agencies (except for Reena and Matthew House).
  • Staff is working with City to update the timelines.
• Scattered Houses
  • The City’s RFP to select the agencies/non-profit housing providers that will purchase the scattered houses will go public in Q4 2019.

Motion carried ON MOTION DULY MADE by Mr. Smith, seconded by Mr. Macrae and carried, BIFAC resolved to receive the above-captioned report for information.

TERMINATION
Public BIFAC meeting was adjourned at 10:48 a.m.

Secretary Chair, Building Investment, Finance and Audit Committee