Jun
08

Board of Directors Meeting - June 8, 2015

June 8, 2015
to
Ground Floor Boardroom
931 Yonge Street, Toronto, ON M4W 2H2

Event description

Archived meeting. See Agenda below.

Agenda

1. Chair’s Remarks

Action: Information

Pre-read: Verbal Report

Presenter: Chair, Board of Directors

2. Approval of Agenda and Review of Agenda Order

Action: Approval

Pre-read: Agenda

Presenter: Chair, Board of Directors

3. Chair’s Poll re: Conflict of Interest

Action: Declaration

Pre-read: Agenda and Conflict of Interest Policy

Presenter: Chair, Board of Directors

4. Interim President and Chief Executive Officer’s Remarks

Action: Information

Pre-read: Verbal Report

Presenter: Interim President and Chief Executive Officer

5. Confirmation of Board of Directors’ Public Meeting Minutes of April 30, 2015

Action: Approval

Pre-read: Minutes

Presenter: Chair, Board of Directors

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

Action: Discussion

Pre-read: Action Item List

Presenter: Chair, Board of Directors

Reports from Building Investment, Finance and Audit Committee (BIFAC):

7. BIFAC Chair’s Report

Action: Information

Pre-read: Verbal Report

Presenter: Chair, BIFAC

8. Auditor General’s Report: Toronto Community Housing Corporation- Results of Follow-up of Previous Audit Recommendations

Action: Information

Pre-read: Auditor General’s Report

Presenter: Beverly Romeo-Beehler, Auditor General

9. 2014 Annual Report and Shareholder Letter (Revised Report)

Action: Approval

Pre-read: TCHC: 2015-09R

Presenter: Chair, BIFAC

10. 2014 Consolidated Annual Financial Statements

Action: Information

Pre-read: TCHC: 2015-29

Presenter: Chief Financial Officer

11. ReSet Capital Renewal and Community Transformation Strategy

Action: Approval

Pre-read: TCHC: 2015-30

Presenter: Chair, BIFAC

Reports from Management:

12. Q1 2015 Performance Report

Action: Information

Pre-read: TCHC:2015-31

Presenter: Director, Strategic Planning & Stakeholder Relations

Reports from Governance, Communications, Human Resources and Compensation Committee (GCHRCC):

13. GCHRCC Chair’s Report

Action: Information

Pre-read: Verbal Report

Presenter: Chair, GCHRCC

14. AGM Protocol for TCHC’s Wholly-Owned Subsidiaries

Action: Approval

Pre-read: TCHC:2015-32

Presenter: Chair, GCHRCC

Reports from Resident Services Committee (RSC):

15. RSC Chair’s Report

Action: Information

Pre-read: Verbal Report

Presenter: Chair, RSC

16. *Withdrawn*

17. *Withdrawn*

18. Presentation 2015 Resident Survey

Action: Information

Pre-read: TCHC:2015-36

Presenter: Brian McCauley, from Nielsen Consumer Insights

TERMINATION

Minutes

The Board of Directors of the Toronto Community Housing Corporation held a public meeting on June 8, 2015 at 11:36 p.m. in the Main Floor Conference Room at 931 Yonge Street, Toronto and via teleconference.

Directors in Attendance:

Norman (Bud) Purves (Chair)

Munira Abukar

Councillor Ana Bailão

Councillor Frank Di Giorgio

Brian Kwan (via teleconference)

Karen Newman

Catherine Wilkinson

Directors Absent:

Zahir Bhaidani

Christian Buhagiar

Councillor Raymond Cho

Councillor Joe Cressy

Audrey Wubbenhorst

Also present:

Marta Asturi, Legal Counsel & Assistant Corporate Secretary

Cathy Barker, Vice President, Human Resources

Jason Gorel, Chief Financial Officer & Treasurer

Ismail Ibrahim, Director, Compliance and Legal Counsel

Hugh Lawson, Director, Strategic Planning and Stakeholder Relations

Graham Leah, Vice President, Asset Management

Sheila Penny, Vice President, Facilities Management

Ken Scott, Senior Director, Strategic Procurement

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

Pamela Spencer, General Counsel & Corporate Secretary

Presenters:

Jerry Schaubel, Director, Auditor General’s Office

Alan Topaloglu, Partner, PriceWaterhouseCoopers LLP

Brian McCauley, Associate Manager, Nielsen Consumer Insights

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

Statement by Greg Spearn, President and Chief Executive Officer (Interim) to the Toronto Community Housing Board of Directors

Mr. Spearn made a brief statement to the Board of Directors regarding an allegation that he improperly used corporate resources.

Item 1 - Chair's Remarks

The Chair welcomed everyone to today’s Board meeting.

Mr. Chair acknowledged three guests attending today’s Board Meeting:

  • Mr. Jerry Schaubel from the City Auditor General’s office, who will update the Board on TCHC’s progress in implementing the outstanding recommendations form the Auditor General’s 2011 and 2012 reports.
  • Mr. Alan Topaloglu from TCHC’s external auditors, PricewaterhouseCoopers LLP, to answer questions about the 2014 consolidated annual financial statements.
  • Mr. Brian McCauley from Nielsen Consumer Insights, to present the 2015 Resident Survey.

The Chair reported that the following motions were carried during the closed sessions of this morning’s meeting and at the Board’s May 25, 2015 meeting:

  • Corporate Goals and Strategic Planning: The Board approved TCHC’s 2015 corporate goals and also approved Management’s recommendation, pending agreement form the City, to extend the timeline and process for delivering the next TCHC Strategic Plan.
  • Contract Awards:
    • A three-year contract to Control Institute to provide the annual mandatory training that Community Patrol Officers must undergo to maintain their status as Special Constables.
    • Two separate six-year contracts to two vendors to supply uniforms worn by unionized employees required under the terms of existing collective agreements. This is the first time TCHC has procured uniforms through a competitive RFP process, and it will save an estimated $30,000 per year through these agreements.

The Chair also made the following remarks with regard to Rent Calculations.

TCHC announced last Monday that, at the Board’s direction, Management is taking immediate and long-range actions to strengthen the company’s processes for calculating rent. This will build on improvements already underway and reduce the chances that a tenant might be overcharged or undercharged rent as a result of human error in a process that for the most part is done manually.

The Chair advised that TCHC will reimburse any tenants who are found to have been overcharged. Several other measures are being put in place to improve oversight of rent calculations and reduce the risk of errors. Management will provide quarterly updates to the Board on steps taken and results achieved.

The Chair pointed out that while the Board recognizes that only a limited number of unintentional errors were found and the majority of rent calculations were correct, TCHC must always strive to do all these calculations as accurately as possible. Overcharging rent places an unfair burden on tenants and their families. Likewise, undercharging rent is unfair to tenants who pay the correct rent and is lost revenue.

The Chair commented that Management did the right thing by identifying this risk and bringing it to the Board’s attention. Management took ownership of this issue and worked with the Board to develop an action plan that is fair to tenants and addresses the root causes of these errors.

Deputation

Ms. Booth registered her deputation and addressed the Board with respect to items 2 and 18 of the Agenda.

Item 2 - Approval of Agenda and Review of Agenda Order

Motion carried

ON MOTION DULY MADE by Ms. Newman, seconded by Councillor Bailão and carried, the Board of Directors approved the agenda.

Item 3 - 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 4 - Interim President and Chief Executive Officer's Remarks

Mr. Spearn reported on the status of a number of the commitments he made to the Board as part of the 2015 budget approval, as follows:

Quality homes:

85 accessibility upgrade projects were identified with budget allocations. To date about 98 per cent of total budget for this year has been allocated ($6.4M out of $6.5M).

Vibrant communities:

18 locations now have a more stable wireless network to support CCTV with new systems and equipment. To date, about 90 per cent ($2.4 M of the $2.7 M) of the Combined Security Program budget has been approved for allocation to CCTV Upgrades and security camera installations.

Service excellence:

  • TCHC had a 22 per cent increase in staff in Integrated Pest Management to support improved living conditions for our residents.
  • 13 vehicles were procured as part of the approved fleet upgrades to provide better security and capital delivery services to our communities.

Mr. Spearn also provided members of the Board with some metrics from today’s Q1 Performance Report to indicate where TCHC is headed at the end of Q1 (see Item 12).

Mr. Spearn stated that TCHC is taking additional steps to strengthen the processes for calculating rent after finding that a limited number of rent-geared-to-income tenants were undercharged rent, or in some cases overcharged, as a result of errors in the calculation process. TCHC staff is notifying and reimbursing all RGI tenants who have been identified as having been overcharged rent as a result of these findings, and, going forward, TCHC staff will be checking all 45,000 files for errors. Mr. Spearn will continue to keep the Board of Directors informed by reporting the progress quarterly.

Mr. Spearn advised that TCHC, in partnership with Scadding Court Community Centre, 14 Division Community Police Liaison Committee and 11 Division Community Police Liaison Committee, celebrated the 14th annual Investing in our Diversity Scholarship Program with a fundraiser on May 27, 2015. A total of 46 youth from across Toronto were awarded scholarships of up to $4,000 to pursue post-secondary education or training. Many of them were TCHC residents. This represents an increase of 18 scholarships from 2014, when 28 youth received these awards. Recipients were selected based on their contributions to their communities in promoting diversity, anti-racism and equity.

Mr. Spearn further advised that in May, employees from Development, Asset Management, Resident and Community Services and our developer partner Daniels celebrated the opening of TCHC's newest rental building in Regent Park: 180 Sackville which is completed almost three months ahead of schedule. This mid-rise building has 86 units, with a number of accessible and family-sized units, as well as an additional 32 four and five bedroom townhomes. As of May 1, relocated residents began moving back into Regent Park and occupying the units.

Mr. Spearn indicated that the Tenant Board Director selection process was completed in May. Newly elected Tenant Representatives from across Toronto voted to select two nominees and two alternates to become part of the TCHC Board of Directors. Catherine Wilkinson and Robert Carlo were nominated, with Conrad Hall and Anita Dressler as alternates. Their names will be considered by City Council later this month.

Mr. Spearn noted that TCHC manages the majority of the subsidized units available for seniors in Toronto. Seniors living in TCHC represent just over 25 per cent of residents, and TCHC manages programs that connect seniors with community partners so they can get the supports they need

Mr. Spearn concluded his update by providing a list of programs that will be happening in the communities in the summer months:

Participatory Budgeting

The launch meeting is scheduled for May 19. In July and August, each community will choose priority projects and, in September, delegates from each community will get together to vote on which projects should get funding this year. This year’s process was delayed due to a number of factors such as scope of work and staffing changes. To address this delay, residents will choose two priority projects (one for 2015 and one for 2016), which will put the progress back on track. Eight million dollars has been set aside in 2015, an increase of $3 million.

Summer youth programs:

  • Rookie League recruitment is underway. This program helps to develop young leaders in the City of Toronto by employing 150 youth (ages 15+) as coaches and mentors.
  • Pre-employment workshops are providing youth in our communities with the tools they need to apply for jobs, like writing resumes and preparing for interviews.
  • More than 100 youth will be hired this month through TCHC’s YouthWorx program for small-scale labour jobs in our communities, like working in community gardens.
  • Beginning in August, KickStart will teach over 300 kids (aged 6 to 12) soccer skills while also providing them with lessons in self-esteem, fair play and leadership. This free eight-week program will run in 15 TCHC communities.
  • Youth Action Grants support youth-led initiatives like summer camps, community events and workshops with funding of up to $2,500. Residents 16 to 29 years of age are being encouraged to apply, and the deadline for applications is June 19.

Mr. Spearn then answered questions from the Board members.

Item 5 - Confirmation of Board of Directors' Public Meeting Minutes of April 30, 2015

The Board had before it the draft Board minutes for April 30, 2015. The Board requested the following amendments on page 6 of 8:

  • Replace Ms. Wilkinson with the Board to read as follows: The Board requested that Management report separately on arrears from seniors.

Motion carried

ON MOTION DULY MADE by Ms. Wilkinson, seconded by
Ms. Newman and carried, the Board of Directors confirmed the above-captioned minutes as amended.

Action Item: 

  1. With reference to “TCHC’s internal Arrears Collection Procedures” referred to in the Minutes of Public Meeting held on April 30, 2015 (on page 6, item 12, last paragraph, the sixth line from the bottom), the Board of Directors requested management submit a report on the current status of senior residents in rental arrears.

Item 6 - Business Arising from the Public Meeting Minutes and Action Items Update

The Board resolved to receive the report for information.

Item 7 - Building Investment, Finance and Audit Committee (BIFAC) Chair's Report

The BIFAC Chair was not present and no report was submitted.

Item 8 - Auditor General's Report Toronto Community Housing Corporation – Results of Follow-Up of Previous Audit Recommendations

The Board had before it the above-captioned report from the Auditor General.

Mr. Jerry Schaubel from the City Auditor General’s office introduced the report and discussion ensued. The last three outstanding recommendations made by the Auditor General’s Office are to be implemented by end of 2015. The Auditor General’s office will review these recommendations as part of their follow up review. Mr. Schaubel noted that Management was very cooperative and appreciated the effort and time to complete the recommendations. Mr. Schaubel advised that there are NO TCHC related projects on the Auditor General’s current workplan.

Motion carried

ON MOTION DULY MADE by Ms. Newman, seconded by
Ms. Abukar and carried, the Board of Directors unanimously received the report for information.

Item 9 - 2014 Annual Report and Shareholder Letter (Revised Report), TCHC:2015-09R

The Board had before it the above-captioned revised report from Building, Investment, Finance and Audit Committee (Report TCHC: 2015-09R).

Mr. Gorel introduced the report and discussion ensued.

Motion carried

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Ms. Newman and carried, the Board of Directors unanimously approved the recommendations in this report to:

  1. Approve the 2014 Annual Report and Letter to the Shareholder (Attachments 1 and 2 to Report TCHC: 201509R); and
  2. Authorize the President and CEO (or designate) to forward the 2014 Annual Report and Letter to the Shareholder to the City of Toronto’s City Manager.

Item 10 - 2014 Toronto Community Housing Corporation Consolidated Financial Statements, TCHC:2015-29

The Board had before it the above-captioned report from the external auditors PriceWaterhouseCoopers LLP (Report: TCHC: 2015-29).

Mr. Gorel introduced the report. Mr. Alan Topaloglu from TCHC’s external auditors, PriceWaterhouseCoopers LLP, was present to answer any questions the Board.

Motion carried

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

Item 11 - Reset Capital Renewal and Community Transformation Strategy, TCHC:2015-30

The Board had before it the above-captioned report (TCHC: 2015-30) from the Interim President and Chief Executive Officer.

Ms. Penny introduced the report. The ReSet capital delivery strategy proposes to engage residents in a holistic way in both the capital improvements to the buildings as well as community services and resources to enhance their neighbourhood.

Approval is being sought for the strategy. After approval of strategy, Management will forward three possible sites for pilot projects. Discussion ensued regarding whether one pilot project would suffice and equitable allocation of funds.

Motion carried

ON MOTION DULY MADE by Councillor DiGiorgio, seconded by Councillor Bailão and carried, the Board of Directors approved the recommendations in this report, subject to modifications, as follows:

  1. Approve in principle the ReSet Strategy as a resident- centric capital delivery approach that leverages TCHC’s 10-year Capital Financing Plan for the benefit of residents.
  2. Management to report back to BIFAC and the Board for approval on the business case for selection of the pilot sites to include estimated savings and metrics on how to measure performance. Management to also report on an alternative option in the event no federal and/or provincial funding is obtained as proposed in the 10 year Capital Financing Plan; this alternative option should address how to bring equity to other capital programs/repairs to TCHC’s portfolio as a whole.

Ms. Wilkinson voted against the motion.

Item 12 - Q1 2015 Performance Report, TCHC:2015-31

The Board had before it the above-captioned report (TCHC:2015-31) from the Interim President and Chief Executive Officer.

Mr. Lawson referenced highlights from Q1 2015 Performance Report. In particular, 60 per cent of TCHC’s quarterly targets were rated “green” – meaning TCHC met or exceeded those targets. TCHC had already delivered $16.3 million in capital programs, exceeding the Q1 target by 48 per cent. In Q1, 357 condos were sold and a total of 207 units were delivered in revitalization projects (a value of $160 million). TCHC staff connected 95 at- risk residents to the supports they need and TCHC addressed over 300 new files from vulnerable residents. TCHC had avoided $5.9 million in procurement costs.

Mr. Lawson advised that condominiums were launched at Allenbury Gardens and are mostly sold. Townhouses at 190 Sackville in Regent Park were completed on schedule. TCHC has secured funding and are working towards increasing affordable rental housing as part of the Alexandra Park Revitalization.

Mr. Lawson further advised that Tenant Representative elections were held in March as part of TCHC’s Resident Engagement System Refresh. Over 7,300 votes were cast for 92 representatives, in addition to 223 candidates.

Mr. Lawson indicated that, as at April 2015, aggregate amount of rent in arrears is $3.5 million. 40 per cent of the arrears were over 60 days. Management discussed with the Board the process for recovery of rental arrears.

Motion carried

ON MOTION DULY MADE by Ms. Munira, seconded by Ms. Newman and carried, the Board of Directors received the report for information.

Item 13 - Governance, Communications, Human Resources and Compensation Committee (GCHRCC) Chair's Report

The GCHRCC Chair was not present and no report was submitted.

Item 14 - AGM Protocol for TCHC's Wholly-Owned Subsidiaries, TCHC:2015-32

The Board had before it the above-captioned report (TCHC: 2015-32). In the absence of the GCHRCC Chair, Ms. Spencer presented the report.

Motion carried

ON MOTION DULY MADE by Councillor Bailão, seconded by Ms. Wilkinson and carried, the Board of Directors unanimously approved the recommendations in this report that

  1. as sole shareholder, conduct an Annual Meeting of the Shareholder via written resolution to consider all necessary matters for the following TCHC wholly- owned subsidiaries:
    1. 2001064 Ontario Inc.
    2. Access Housing Connections Inc.
    3. Alexandra Park Development Corporation
    4. Allenbury Gardens Development Corporation
    5. Don Mount Court Development Corporation
    6. Housing Services Inc.
    7. Leslie Nymark Development Corporation
    8. Railway Lands Development Corporation
    9. Regent Park Development Corporation
    10. Toronto Affordable Housing Fund
    11. Toronto Community Housing Enterprises Inc.;
  2. authorize the TCHC Interim President and Chief Executive Officer to represent the shareholder, TCHC, and conduct the annual meeting via written resolution in similar form as Appendix 1 to Report TCHC:2015-32; and
  3. authorize the TCHC Interim President and Chief Executive Officer and the General Counsel and Corporate Secretary (and their respective designates) to take all actions and execute all necessary documents to implement the above resolutions.

Item 15 - Resident Services Committee (RSC) Chair's Report

The RSC Chair was not present and no report was submitted.

Item 16 - Scholarship Policy

This item was withdrawn.

Item 17 - Sponsorship Policy

This item was withdrawn.

Item 18 - Presentation – 2015 Resident Survey, TCHC:2015-36

The Board had before it the above-captioned report from the Resident Services Committee (Report TCHC: 2015-36)

Mr. Lawson introduced the report.

Mr. Brian McCauley from Nielsen Consumer Insights presented the 2015 Resident Survey report and answered questions from the Board.

The Board recommended that GCHRCC review the survey results and develop a link to performance reviews for staff.

Motion carried

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

Action Item:

GCHRCC to review results of the survey and develop a link to staff performance evaluations.

TERMINATION

The Board resolved to terminate the public meeting at 2:00 p.m.

Sonia Fung

Committee Secretary