Building Investment, Finance and Audit Committee (BIFAC) Meeting - September 24, 2015

Agenda

Consent Public Agenda Items

The Consent Agenda items listed on the Consent Public Agenda will require a resolution of the Committee but are not scheduled for a full discussion at the Committee meeting.  The Committee Chair will ask for approval of the following Consent Agenda items. Committee members must indicate if they wish to request to discuss the Item, question the Item or register a vote against the Item.  If an Item is removed from the Consent Agenda, it will be discussed at the end of the meeting.

1. Approval of Agenda

Action: Resolution to approve the agenda  

Pre-read: Agenda

2. Confirmation of Public Meeting Minutes:

• July 15, 2015    

​Action: ​Resolution to confirm the public minutes

Pre-read: Minutes

3. Business Arising from the Minutes and Committee Action Items Update (Former BIC and CAAC)

Action: Resolution to receive for information  

Pre-read: Action Item List

Building State of Repair and Environmental Sustainability:

4. Stand-Alone Properties: Sales and Relocation Update (Standing Item)

Action: Resolution to receive for information

Pre-read: BIFAC:2015-98

Public Meeting Agenda

5. Chair’s Poll re: Conflict of Interest

Action: Declaration

Pre-read: Agenda Conflict of Interest Policy

Presenter: Chair

Report from the BIFAC Chair:

6. Chair’s Report and Remarks

Action: Information

Pre-read: Verbal Report

Presenter: Chair

Internal Audit, Accounting Systems and Internal Controls:

7. Internal Audit Update

Action: Information

Pre-read: Verbal Report

Presenter: Chief Internal Auditor

Commissioner of Housing Equity Report:

8. OCHE – Quarterly Performance Report (Q2 2015)

Action: Information

Pre-read: BIFAC:2015-72

Presenter: Commissioner of Housing Equity

9. Office of Commissioner of Housing Equity: 2016 Budget

Action: Committee and Board Approval

Pre-read: BIFAC:2015-100

Presenter: Commissioner of Housing Equity

10. OCHE – 2016 Work Plan

Action: Committee and Board Approval

Pre-read: BIFAC:2015-101

Presenter: Commissioner of Housing Equity

Capital Projects, Real Property and Building Revitalization:

11. Allenbury Gardens: Transfer of Development Block to Partnership

Action: Committee and Board Approval

Pre-read: BIFAC:2015-102

Presenter: Chief Development Officer

12. Regent Park Phase 3: Rental Block 27 Anchor Business Plan

Action: Committee and Board Approval

Pre-read: BIFAC:2015-103

Presenter: Chief Development Officer

13. ReSet Capital Renewal and Community Transformation Strategy Update as of September 9, 2015

Action: Information

Pre-read: BIFAC:2015-104

Presenter: Vice President, Facilities Management

Report from Management

14. Access to TCHC Parking Facilities by Third Party Service Providers

Action: Information

Pre-read: BIFAC:2015-122

Presenter: Senior Manager, Commercial Business Unit

TERMINATION

Consent Closed Agenda

The Consent Agenda items listed on the Consent Closed Agenda will require a resolution of the Committee but are not scheduled for a full discussion at the Committee meeting. The Committee Chair will ask for approval of the following Consent Agenda items. Committee members must indicate if they wish to request to discuss the Item, question the Item or register a vote against the Item. If an Item is removed from the Consent Agenda, it will be discussed at the end of the meeting.

A. Approval of Agenda

Recommendation: Resolution to approve the agenda 

Pre-read: Agenda

B. Confirmation of Closed BIFAC Meeting Minutes:

• July 09, 2015    

Recommendation: Resolution to confirm the closed minutes

Pre-read: Minutes

C. Receipt of Closed Investment Advisory Committee Minutes:

• February 25, 2015    

Recommendation: Resolution to receive for information

Pre-read: Minutes

D. Business Arising from the Minutes and Committee Action Items

Recommendation: Resolution to receive for information

Pre-read: Action Item List

Financial Compliance:

E. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes

Recommendation: Committee and Board approval

Pre-read: BIFAC:C2015-105

F. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes

Recommendation: Resolution to receive for information  

Pre-read: BIFAC:C2015-106

G. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes

Recommendation: Resolution to receive for information

Pre-read: BIFAC:C2015-107

Capital Projects, Real Property and Building Revitalization:

H. Confidential report respecting matters involving the security of the property of the Corporation

Recommendation: Resolution to receive for information    

Pre-read: BIFAC:C2015-108

I. Confidential reports respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes

Recommendation: Resolution to receive for information 

Pre-read: BIFAC:C2015-88, BIFAC:C2015-89, BIFAC:C2015-90, BIFAC:C2015-91, BIFAC:C2015-92, BIFAC:C2015-93, BIFAC:C2015-94, BIFAC:C2015-95, BIFAC:C2015-97

Closed Meeting Agenda

J. Chair’s Poll re: Conflict of Interest

Action: Declaration 

Pre-read: Agenda Conflict of Interest Policy

Presenter: Chair

Report from the BIFAC Chair:

K. Chair’s Report and Remarks

Action: Information

Pre-read: Verbal Report

Presenter: Chair

Capital Projects, Real Property and Building Revitalization:

L. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes

Action: Committee Approval

Pre-read: BIFAC:C2015-109

Presenter: Vice President, Facilities Management

M. Confidential item from the Chief Development Officer

Action: Information

Pre-read: Verbal Report

Presenter: Chief Development Officer

N. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes

Action: Information

Pre-read: BIFAC:C2015-110

Presenter: Chief Development Officer

O. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes

Action: Committee and Board Approval

Pre-read: BIFAC:C2015-111

Presenter: Chief Development Officer

P. Confidential report respecting:

• Matters involving the security of the property of the corporation;
• Matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes.    

Action: Information

Pre-read: BIFAC:C2015-112

Presenter: Senior Manager, Commercial Business Unit

Budget, Financial Reporting and Financial Statements:

Q. Confidential report respecting matters involving the security of the property of the Corporation

Action: Information

Pre-read: BIFAC:C2015-113

Presenter: Chief Financial Officer and Treasurer

R. Confidential report respecting matters that are or may be the subject of litigation or potential litigation, and recommendations of proposed policy or process

Action: Information

Pre-read: BIFAC:C2015-114

Presenter: Chief Financial Officer and Treasurer

S. Confidential report respecting the financial status of the development projects, including projects with development partners, for the period ended June 30, 2015

Action: Information 

Pre-read: BIFAC:C2015-115

Presenter: Chief Financial Officer and Treasurer

T. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to a proposed or pending transaction with a third party, and recommendations of proposed policy or processes

Action: Information

Pre-read: BIFAC:C2015-116

Presenter: Chief Financial Officer and Treasurer

Information Technology:

U. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes

Action: Committee and Board Approval

Pre-read: BIFAC:C2015-117

Presenter: VP, Information Technology Services

Financial and Fraud Risk:

V. Confidential report respecting legal advice that is subject to solicitor-client privilege including communications necessary for that purpose

Action: Information

Pre-read: BIFAC:2015-118

Presenter: Chief Financial Officer & Treasurer

W. Confidential report respecting legal advice that is subject to solicitor-client privilege including communications necessary for that purpose

Action: Information

Pre-read: BIFAC:C2015-119

Presenter: Chief Financial Officer & Treasurer

In Camera Meeting

External Audits:

X. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes

Action: Information

Pre-read: BIFAC:C2015-120

Presenter: Chief Financial Officer & Treasurer

Oversight of the Chief Internal Auditor:

Y. Confidential report respecting personal matters about an identifiable individual, including an employee

Action: Committee and Board Approval 

Pre-read: BIFAC:C2015-121

Presenter: Vice President, Human Resources

TERMINATION

Public Minutes

The Building Investment, Finance and Audit Committee (“BIFAC”) of Toronto Community Housing Corporation (“TCHC”) held a public meeting on September 24, 2015, via teleconference and in the Main Floor Conference Room, 931 Yonge Street, Toronto, commencing at 9:09 a.m.

Committee Directors Present:

Councillor Frank Di Giorgio, Chair

Catherine Wilkinson, Acting Chair

Committee Directors Absent:

Councillor Ana Bailão

Karen Newman, Vice Chair

Other Directors in Attendance: 

Norman (Bud) Purves (via teleconference)

Robert Carlo

Also Present:

Marta Asturi, Legal Counsel and Assistant Corporate Secretary

Valesa Faria, Senior Manager, Commercial Business Unit

Jason Gorel, Chief Financial Officer and Treasurer

Ismail Ibrahim, Interim General Counsel and Corporate Secretary

Graham Leah, Vice President, Asset Management

Sheila Penny, Vice President, Facilities Management

Trevor Shaw, Sr. Advisor to Commissioner of Housing Equity

Greg Spearn, Interim President and Chief Executive Officer/ Chief Development Officer

Michael Vear, Chief Internal Auditor

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Mr. Purves and carried, the BIFAC unanimously resolved that Ms. Wilkinson will chair the meeting as Acting Chair in the absence of the Chair at the meeting and until his arrival.

A quorum being present, the Acting Chair called the meeting to order and Ms. Mirela Bolentiru served as recording secretary.

Item 1 - Approval of the Consent Public Agenda Items & Public Agenda

The Consent Public Agenda is comprised of the following items:

1. Approval of Public Meeting Agenda;
2. Confirmation of the July 9, 2015 Public Meeting Minutes; 
3. Business Arising from the Minutes and Committee Action Items Update (Former BIC and CAAC); and
4. Stand-Alone Properties Sales and Relocation Update (Standing Item.

Motion carried

ON MOTION DULY MADE by Mr. Purves, seconded by Ms. Wilkinson and carried, the BIFAC unanimously approved the following that were not held for discussion:

• Consent Public Agenda Item 1 “Public Meeting Agenda;”
• Consent Public Agenda Item 2 “Confirmation of the July 9, 2015 BIFAC Public Meeting Minutes;”
• Consent Public Agenda Item 3 “Business Arising from the Minutes and Committee Action Items Update (Former BIC and CAAC); 
• Public Agenda Item 11 “Allenbury Gardens: Transfer of Development Block to Partnership;” 
• Public Agenda Item 12 “Regent Park Phase 3: Rental Block 27 Anchor Business Plan” 

The Public Agenda Items 4, 7-10, 13 and 14 were held for discussion.

Item 2 - Confirmation of Public Meeting Minutes

The BIFAC had before it the draft minutes from the July 9, 2015 public meeting.

Motion carried

ON MOTION DULY MADE by Mr. Purves, seconded by Ms. Wilkinson and carried, the BIFAC unanimously confirmed the July 9, 2015 minutes. 

Item 3 - Business Arising from the Minutes and Committee Action Items Update (Former BIC and CAAC)

The BIFAC had before it the above captioned report. 

Motion carried

ON MOTION DULY MADE by Mr. Purves, seconded by Ms. Wilkinson and carried, the BIFAC unanimously received the report for information. 

Item 5 - 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 interest. None were declared.

Item 4 - Stand-alone Properties Sales and Relocation Update (Standing Item) BIFAC:2015-98

The BIFAC had before it the above-captioned report (BIFAC:2015-98) from the Interim President and Chief Executive Officer.

The BIFAC enquired with respect to the Tenant Relocation Assistance and Implementation Plan (“TRAIP”), details with respect to the option for the residents who are currently paying market rent to purchase their houses, while ensuring the fairness of the process for all residents, and the status of the 15 properties that are subject to regulatory restrictions.

Management addressed the queries from the BIFAC as follows:

• TCHC has developed a specific Tenant Relocation Assistance and Implementation Plan (“TRAIP”) to assist the needs of the residents during the relocation process. TRAIP has been approved by the Ministry of Municipal Affairs and Housing and the City of Toronto. Copies of the plan have been provided to the affected Ward City Councillors and were distributed last year to the Board members. 

Action item and Update:

BIFAC requested Management to resend the TRAIP. On September 25, 2015, Management circulated a copy of TRAIP to the BIFAC as requested.

• Management is working with the Legal Services Unit on the option for the residents to purchase their houses and to map all the steps involved in this process. 

Action item:

Once the procedure has been finalized, Management will provide the BIFAC with a report on this matter.

• 15 TCHC properties are under regulatory restrictions and they have not been targeted for sale in 2015. 7 properties are vacant and 8 properties are occupied. 

Motion carried

ON MOTION DULY MADE by Mr. Purves, seconded by Ms. Wilkinson and carried, the BIFAC unanimously received the report for information and recommended that the report be forwarded to the Board of Directors for information.

Item 6 - Chair's Report and Remarks (Verbal)

No comments or remarks from the Chair.

Item 7 - Internal Audit Update (Verbal)

The BIFAC enquired with respect to the rationale of deferring reports and expected timelines for providing the BIFAC with those reports. The Chief Internal Auditor explained that some work could not be completed due to scarce financial and human resources, and the allocation of staff to address other issues on priority basis, related to the Mayor’s Task Force. The deferred reports are included in the Internal Audit Work Plan and they will be brought forward to the BIFAC in the last quarter of 2015 and first quarter of 2016.

The Chief Internal Auditor provided a verbal summary of the Internal Audit department, including the following:

• A new manager has been hired since the previous BIFAC meeting held on July 9, 2015.
• Allocating time to review and revise where necessary the Work Plan and internal audit processes, standardizing procedures if possible.
• Internal Audit was working on the report with respect to the Rent-Geared-to-Income (RGI) calculation. Data has been collected and provided to the external auditor, PWC, for analysis. PWC’s findings are expected in the next 5-6 weeks.

Motion carried

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Mr. Purves and carried, the BIFAC unanimously received the verbal report for information.

Item 8 - OCHE – Quarterly Performance Report (Q2 2015), BIFAC:2015-99

The BIFAC had before it the above-captioned report (BIFAC:2015-99) from the Commissioner of Housing Equity (COHE).  

The BIFAC presented apologies on behalf of the COHE for not being in attendance at the meeting due to illness. Trevor Shaw was in attendance and addressed questions raised with respect to the report.

A discussion ensued with respect to the following:

• Challenges encountered with respect to reaching the L1 Eviction Application decision within two months of arrears accruing, in accordance with the Arrears Collection Process (Attachment 1 “OCHE Overview (Q2 2015)”).
  • TCHC has encountered challenges with respect to arrears and loss of subsidy that were addressed in the Q2 2015 Performance Report (page 3). More improvement will be reflected in the next quarterly Performance Report.
• Delays in referring to OCHE the arrears files for vulnerable residents.
  • Management explained that the referral procedure in place requires 65 days to completion.
  • In 2015, 2,700 more files for vulnerable residents were referred to OCHE compared to last year.
  • OCHE focuses on brokered local repayment agreements with the residents and direct payments to TCHC.
• Rent accumulation for up to 12 months for some of the vulnerable residents and their inability for payment.
  • The OCHE stabilized housing and avoided evictions for 82% of the senior and vulnerable residents for arrears files that were completed in the second quarter of 2015.
  • 35% of the files referred to OCHE were concluded in local repayment agreements with the residents. This data was not included in the OCHE Performance Report as it was in reference to files that have been successfully addressed.

Action item:

Management will report back, by the end of 2015 or early 2016, to the BIFAC on success and level of improvement of the services provided to the residents due to the increase additional staff to the process.

Motion carried

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Mr. Purves and carried, the BIFAC resolved to request Management to report back on the internal operational changes in the processes in Q4 2015 and their impact on the OCHE timelines, including measurable, comparable results.

Motion carried 

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Mr. Purves and carried, the BIFAC unanimously received the report for information and recommended that the report be forwarded to the Board of Directors for information.

Councillor Di Giorgio joined the meeting at 9:35 a.m.

Motion carried

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Mr. Purves and carried, the BIFAC unanimously resolved that Councillor Di Giorgio continue the meeting as the Chair.

Item 9 - Office of the Commissioner of Housing Equity: 2016 Budget, BIFAC:2015-100

The BIFAC had before it the above-captioned report (BIFAC:2015-100) from the Commissioner of Housing Equity (COHE).  

The BIFAC requested the COHE to provide clarifications with respect to both 2015 and 2016 OCHE Budgets. Mr. Shaw clarified the differences between the revised 2015 Budget as approved by the Board of Directors on July 28, 2015 and the proposed 2016 Budget, as follows:

• Increase from 6 to 8 full-time staff. The OCHE 2016 Budget included annualized staff salary and benefits for 8 full-time staff, including the COHE.
• The Board of Directors approved two additional Early Resolution Officer positions on one-year contracts to commence in the fall of 2015. The 2016 OCHE Budget annualizes these two positions for 2016, in the event that the activity level at OCHE will continue at their present level and an extension of these contracts would be necessary.
• Increase in the general operation expenses, such as for services, materials and supplies, from $53,640 in the revised 2015 Budget to $88,722 in the proposed 2016 Budget.

Motion carried

ON MOTION DULY MADE by Mr. Purves, seconded by Councillor Di Giorgio and carried, the BIFAC unanimously resolved to forward the report to the Board of Directors for discussion and approval at its next meeting.

Item 10 - OCHE – 2016 Work Plan, BIFAC:2015-101

The BIFAC had before it the above-captioned report (BIFAC:2015-101) from the Commissioner of Housing Equity (COHE).  

The BIFAC noted that the OCHE Terms of Reference are being revised and the targets and responsibilities may change.

Deferred

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Councillor Di Giorgio and carried, the BIFAC unanimously deferred the report until the revised OCHE Terms of Reference are available.

Item 11 - Allenbury Gardens: Transfer of Development Block to Partnership, BIFAC:2015-102

The BIFAC had before it the above-captioned report (BIFAC:2015-102) from the Interim President and Chief Executive Officer.

Motion carried

ON MOTION DULY MADE by Mr. Purves, seconded by Ms. Wilkinson and carried, the BIFAC unanimously adopted the report and resolved to forward the report to the Board of Directors to:

1. Authorize the transfer of: Part 2 on 66R-27626, being the reference plan registered on September 10, 2014 (the “R-Plan”) from Toronto Community Housing Corporation (TCHC) to Allenbury Gardens Revitalization General Partnership (Partnership) via the bare trustee/nominee, Connect Residences Inc.; and,
2. Authorize the Interim President and Chief Executive Officer (or designate) to execute any and all documents as may be necessary to give effect to the above recommendations. 

Item 12 - Regent Park Phase 3: Rental Block 27 Anchor Business Plan, BIFAC:2015-103

The BIFAC had before it the above-captioned report (BIFAC:2015-103) from the Interim President and Chief Executive Officer.  

Motion carried

ON MOTION DULY MADE by Mr. Purves, seconded by Ms. Wilkinson and carried, the BIFAC unanimously adopted the report and resolved to forward the report to the Board of Directors to:

1. Approve the implementation of the Phase 3 Rental Block 27 Anchor Business Plan (ABP) provided the total project budget remains within 5% of the projected $85.7 million cost, inclusive of Toronto Community Housing Corporation’s (TCH) internal costs, as outlined in this report.
2. Authorize the President and Chief Executive Officer (Interim) or his designate to take the necessary actions, incur capital commitments, and execute any and all documents as may be necessary in connection with the continued development and construction of Rental Block 27. Such commitments shall be made in accordance with the contractual arrangements between TCH and the Daniels Corporation and shall include, but not be limited to, additional consulting contracts, construction contracts, loan documents as required, planning documents and other ancillary contracts and permits required to give effect to the above recommendation.

Item 13 - Reset Capital Renewal and Community Transformation Strategy Update as of September 9, 2015, BIFAC:2015-104

The BIFAC had before it the above-captioned report (BIFAC:2015-104) from the Interim President and Chief Executive Officer.

Management presented an update to the BIFAC, including the following main points:

• The ReSet Capital Renewal and Community Strategy was approved by the Board of Directors on June 8, 2015.
• The Board approved three pilot communities on July 28, 2015 to test the strategy. The pilot project is going well.
• A public Request for Proposals (RFP) was issued to select the architects and engineers who will prepare the designs for each community, based on the resident and community engagement and input. The RFP has been closed and staff have short-listed six consultants who made presentations on September 16, 2015 to resident leaders in each of the three pilot communities. The resident leaders will select the consultant that is best suited to their community needs.
• Management has held consultations with the City of Toronto that is supporting TCHC’s ReSet initiative.

Motion carried

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Councillor Di Giorgio and carried, the BIFAC unanimously received the report for information.

Item 14 - Access to TCHC Parking Facilities by Third Party Service Providers, BIFAC:2015-122

The BIFAC had before it the above-captioned report (BIFAC:2015-122) from the Interim President and Chief Executive Officer.

The BIFAC raised questions for clarification with respect to the sources of the parking fees. Management explained that:

• The parking fees are not subsidized; they are an incremental increase of the rent. 
• The rents paid by the residents are lower than the rents paid by the businesses that rent spaces on the TCHC properties. 
• Rent increases are applied in compliance with the City of Toronto Bylaws, which provides for a certain increase annually. 

Motion carried

ON MOTION DULY MADE by Mr. Purves, seconded by Ms. Wilkinson and carried, the BIFAC unanimously received the report for information and requested Management to provide a supplemental report with the following additional information:

• Annual revenues from parking fees;
• Costs or range of costs associated with parking facilities;Total number of parking spaces; 
• Rationale for TCHC offering parking facilities and other options available; and
• Parking strategies.

TERMINATION

The BIFAC resolved to terminate the public meeting at 10:01 a.m.