Toronto City Council Audit Committee, 13 Jul 2018

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From YouTube: Audit Committee - July 13, 2018 - Part 1 of 2

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Audit Committee, meeting 13, July 13, 2018 - Part 1 of 2
Agenda and background materials:
http://app.toronto.ca/tmmis/decisionBodyProfile.do?function=doPrepare&meetingId=13710
Part 2 of 2: https://www.youtube.com/watch?v=utVntoSPPGg#t=10m26s

Meeting Navigation:
0:10:42 - Call to order

A

Good morning. welcome to the 13th meeting of the audit committee.

A

I want to begin by acknowledging that we are meeting that we are meeting today on the traditional.

A

Territory of the mississaugas of new credit: first nation,, the haudenasaunee,, the huron-wendat.

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And home to many diverse indigenous peoples., I will take a minute to recognize that we.

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Are here at our last audit committee and welcome to the newest member councillor davis.

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I also wanted to -- [laughter], perhaps after.. I wanted to say thank you to a few people.

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In the room., thank you to chin lee councillor, who is not.

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Here and he was our chair and because of his leadership, we were able to get through and.

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Thank you to my vice councillor. Christin carmichael greb.

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And I also want to thank the auditor general.. There is too many to name at us.

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I want to thank many of you, and some of the managers and directors and assistant auditors.

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That I have worked with throughout the term. the pork that the work that you do is amazing.

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And changes the public service before us and creates that license to create change and.

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Transformation. we have a chief transformation officer, councillor.

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Carmichael greb works extensively and some of the work and findings lays the groundwork.

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To make these massive changeless. s., I want to take a quick second to talk about some of these phenomenal files.

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Who could forget the report on parlors and nightclubs and some of the work on it? Knowledge.

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And security, real estate and building permits. the reports on toronto parking authority,.

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Employee benefits for health and dental, disability benefits and who could forgot payment contracts.

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These is just a quick list that stand out, but there is countless others.

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I can only imagine the agony and ecstasy of working on those files and some of the agony.

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Of going through details, things like body rub parlors and holistic health, and of courser.

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Of course, the ecstasy of seeing those changes coming forth.

A

One note I would make that I hope you don't discuss the importance of your work based.

A

-- sometimes we don't have time to talk about all the things at once,, so I thank you for.

A

This work- and I know you are starts to see some of the fruits of your labour and we have.

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A strong and better government and something the citizens are more confident in because.

A

Of the work that you do., I also want to thank the management team and.

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They come and go for the capacity of the files, and we know how much work you do and how seriously.

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You take of the work of the auditor general and the team, and thank you for the effort.

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You have put in over the last four years. with that,. I would also like to thank our.

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Clerk staff that do amazing things.- they are here for the period of the meeting.

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And where you are sitting it looks easy,. It is not.

A

There is a tremendous amount of work done by rosemary and margaret to make this meeting.

A

And make sure things are ready and just right.. I am really indebted.

A

With that, I would like to carry on with the meeting,, and I thank you.

A

I will take a motion to confirm the minutes from may 11, 2018.

A

All those in favour? that is carried.

A

We can now go through the items.. I know that you know that item 11 on fire.

A

Safety is an item that will take some discussion and I propose we reorder that to the end of.

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The meeting as I realize there may be some questions that may need to go into camera,.

A

And so for efficiency,, I would like to order that way. So we can get people out of the room.

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Once their items are dealt with and focus in on that particular item.

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I ask committee members that there are a number of financial statements attached,. If you could.

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Identify the specific financial statement, then we can let the others who are here speak.

A

To those other statements also leave once the item is dealt with, with the caveat, the.

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We can go into the other statements and if the question arises that you are here to help.

A

Support questions., the first I have is au13.1.

A

On that they item? councillor hart.

A

A

Are there any questions on that item?? Seeing none was a committee member wish to.

A

Move that. councillor matlow.

A

All those in favour? that is carried. au13.16. councillor ford wishes to hold that. au13.17. questions on that item. councillor hart. au13.18., auditor general 2018 report on outstanding recommendations., any questions. move adoption. all those in favour? that is carried.

A

au13.19. any questions?

A

councillor matlow. au13.20, all right. We are back to the top of.

A

The order. au13.1.

A

Thank you for allowing us to present the city's.

B

2017 consolidated financial statements. joining us from pwc are the engagement partners.

B

For the city, as well as the senior managers. and manager.

B

The report provides details and highlights to the statement and gives meaning to the.

B

Numbers., for we will provide outline of the 2017 consolidated.

B

Statements and talk about the difference between accounting and budgeting and give you highlights.

B

Of the 2017 financials and talk to you about what is up and coming in the public sector.

B

Accounting world and provide concluding remarks before we answer your questions.

B

There are four individual statements and each provides information about the city's financial.

B

Position, assets, liability,, revenue, and expenses.. The statements are prepared using the accrual.

B

Basis of accounting, and we will promore information on later in the presentation.

B

Supporting these are explanatory noltes, reference in each individual statement that provide.

B

Expanded explanation and reporting amounts. there are 123 entities consolidated into the.

B

Financial statements, which is the same as last year.,.

B

The statements reflect the combined assets and revenues and responsibilities of the corporate.

B

Capital and the reserve and the reserve funds of the agencies and corporations.

B

Gbs are shown on the statements and they are enterprises controlled by the city and each.

B

Prepare their own financial statements presented separately to committee.

B

The business improvement areas are listed on pages, 9 and 10 and in appendix a of our.

B

Report., it is always appropriate at this time to remind.

B

The committee of the roles and responsibilities of management and the auditors.

B

Management is responsible for preparing the financial statements in accordance with generally.

B

Acceptable accounting, principles, gap and for maintaining systems for the oversight.

B

Of the city's financial activities., the auditors, price, waterhouse coopers audit.

B

In accordance with generally accepted accounting matters and provide independent opinion, as.

B

To whether the financial statements present fairly in all respects the city's financial.

B

Activities., we would like to explain the difference between.

B

The way municipalities budget. this would clarify why the surplus reported.

B

In the city's annual statements differs from the year end, operating report.

B

The statements are prepared in accordance with gap as set by cpa canada's public board.

B

--, rather than expensing the capital assets, they.

B

Are capitalized under gap. the city,, like all mu, municipalities, budgets,.

B

Based on requirements and budgets for debt service and costs, including principal repayments,.

B

But does not budget for amoritization for increase in capital costs.

B

The financial statement surplus is based on a full accrual basis of 123. Entities, includes.

B

Tax and rates supported programs and the combined activity it is of the operating capital and.

B

Reserve funds. the surplus is based on a case requirement.

B

Basis and follows a budget process approved by counsel and reflects the city's surplus.

B

For funded item but excludes -- and water.

B

On the financial statement side, the surplus includes expenses that do not require cash.

B

Outlays such as amortization for capital assets and changes in liability for future employment.

B

Benefits, landfill closure costs and insurance requirements.

B

The annual surplus is based on cash requirements and debt repayments and follows accrual accounting.

B

For most masters, but not for debt or actuarial liabilities.

B

I would like to turn turn it over the oh, the to the correct dor director.

C

We would like to take you through highlights.. Our staff report does provide details on the.

C

Category makeup and changes with respect to a number of major account categories,, but.

C

In this presentation, we would like to highlight a few major items for you and we have provided.

C

Details as appendixes in this presentation, if you wash to look there for further information.

C

As mike indicated,, one of the statements is a statement of financial position.

C

The december 31, 2017,, the city had financial assets of $10 million.

C

41% of those are investments which are mostly reserve and reserve funds committed for future.

C

Use. 2.4million or 24% is investment in government.

C

Business entities and the other financial assets consist of cash, accounts, receivable.

C

And taxes receivable. the liabilities, total 17.1 billion.

C

Accounts payable, 3.4 billion, --, deferred revenue is 2.8 billion and those are revenues received.

C

That are set aside for specific purposes by legislation or agreement.

C

Examples would be development charges or transit funds.

C

6.3Billion is the long-term debt and morgue mortgages of the cities, and it's abcs.

C

Employee benefit liabilities are 3.9 billion and others of 746 million, things like landfill.

C

And environmental liabilities and ttc accident claims.

C

Net is 7.1 billion, which is excess of liability over financial assets.

C

Net debt is actually an important measure for the city and all governments, because it's.

C

The amount that needs to be financed from future revenues and therefore it always should.

C

Be maintained at the sustainable level. net debt increased.

C

The city's nonfinancial assets at the end of the 2017 totalled 30.8 billion,. The majority.

C

Of which, 30.4 billion is equal to the city's investment in capital, assets.

C

The accumulated accounts surplus for the city at the end of the 2017 is 23.7 billion.

C

I will go over a few significant amounts., the city's net long-term debt and mortgages.

C

Actually increased this year by about 900 million.

C

The city issued 1.3 billion in debt this year and had repayments of 424 million.

C

That included sinking fund earning of about 58 million.

C

In terms of employee benefits liabilities, these represent amounts payable to employees.

C

In future years for services provided in future and prior years,, worker's compensation, disability,.

C

Health benefit for retirees and other benefits covered under the city's legacy. Plan.

C

Increased by 7.6% and the majority is ltd. knelt.

C

Net debt is excess of liabilities over financial assets.

C

In 2017 it increased 9.4%.. The majority of this increase is due to city's.

C

Financing of tangible capital assets offset by the surplus of 1.2 billion in 2017.

C

Nonfinancial assets represent the value of the assets used in the delivery of city services.

C

The city invested $3 billion in assets,, 1.4 of which was in building improvements.

C

I will stake. You. Take you through the statement of operations.

C

And accumulated surplus. for 2017 on a consolidated basis, the city.

C

Had revenues of the 12.6 billion, which consisted of property, taxes, user, charges, and funding.

C

Transfers from other governments. expenses incurred, 11.3 million, mostly related.

C

To the protection of persons and property, transportation, social and family services,.

C

And recreation, recreational and council services.: this leaves surplus of 1.2 billion.

C

There was a significant shortfall in actually versus budgeted revenues occurring in funding.

C

Transfers of other governments, of 566 million due to delays in approved, signed agreements.

C

In projects --.

C

Just to provide information on the reconciliation between the budget and accounting surplus.

C

For the year., the budget surplus for 2017 is reported to.

C

Council in late june and adopted by council was 261 million.

C

In order to reck nile back soil back to accounting surplus,, we have added back 36 million in.

C

Reserve funds that flowed through the city's operating budget but are considered deferred.

C

Revenues. there is a number of noncash addbacks.

C

Been we have added back accrued vacation and leave time and other adjustments that include.

C

Things like net changes to noncapital assets, which would include amortization.

C

The accounting surplus is 1.2 billion and it should be noted. This is not a cash surplus.

C

Because it includes assets which are capital and infrastructure assets which can't be sold.

C

To generate money for other purposes,, so the makeup of our accumulated surplus is our investment.

C

In capital, tangible assets of 30.4 million. as an example, the city has 13.2 invested in.

C

Land, buildings, building improvements, machine equipment and vehicles and invests in water,.

C

Linear main,, roads and transit. another component is the funds balances that.

C

Total approximately $4 million., the accumulated surplus is redualsed by amounts.

C

To be recovered by future revenues, things like mortgages, net, long-term debt and employee.

C

Benefits --. We tails details we provided earlier., although the accumulated surplus is high,.

C

As you can see, the majority of the makeup is the city's nonfinancial, tangible assets.

C

Which do not provide liquidity, nor are they available for sale because they are required.

C

To perform city services., there has been a number of new standards that.

C

Will be coming forward from psab in 2018 and future years.

C

Under the direction and guidance of the treasurer will conduct research and determine which.

C

Of these standards impact our financial statements. standards, only impact financial items.

C

In addition, in 2018, accounting services will participate in the task force on climate-related.

C

Financial disclosures, which is an initiative in partnership with natural resources, canada,.

C

That will look at information available from cities to determine how this information can.

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Be leverage for decision makes and what will be required related to this information.

C

This is important initiative for toronto because the ability for municipal municipalities to.

C

Be resilient continues to draw attention.. Thank you. Sandra.

B

In conclusion, we have statements before you with a clean audit opinion and fewer control.

B

Points than last year,, though, two segregation and duties and the financial close process.

B

Are still there and we are working on incremental statements to both.

B

The statements provide information on the city's performance in 2017 and it's financial.

B

Condition at the end of the year., the city's finances support is good credit.

B

Rating, however, during the year net debt increased and the slide sow shows increased over the.

B

Past four years. there are has been concern over the city's.

B

Financial direction, which will not be discussed as part of these financial statements, other.

B

Than these are based on historical data., our key challenges include maintaining significant.

B

Assets, infrastructure and good repair and investing in infrastructure as the city goes.

B

And funding our from existing revenue- and these sometimes show we have invested in tangible.

B

Capital assets and, on a closing note, I am proud to advise that the city has received.

B

The gfoa award for it's 2016 financial statements and we certainly intend to receive that award.

B

Again for these financial statements., I want to thank and acknowledge the outstanding.

B

Work and commitment in preparing the city's consolidated statements and report, particularly.

B

Sandra,, the director of accounting, services, manager of general reporting,, as well as the.

B

Rest of the accounting team,, they all played a key role in presenting these statements.

B

And that concludes our presentations and we are willing to take any question cans, questions.

A

Au13.9 is held by councillor hart.. I think there is a presentation on that and.

A

I missed that during the rundown, but want to make sure that the time is set if they.

A

Want to make that presentation. second,, I recognize there is probably a lot.

A

Of people in the room waiting for number 11., given the number of items on the agenda, I.

A

Think it's a safe bet that it listen at least an hour before we get to that so about 11:15,.

A

If not longer,, so if you do drift out of the room, be mindful that we will not get to that.

A

For some time. kathy, russell and michael houghton are here.

A

Who are the auditors that worked on this.? I would offer the floor if you have questions.

A

That you would like to ask. Thank you, mr. chair.. If it would please the committee to provide.

D

A brief overview of the audit. I will assume our report has been pre read,.

D

So just a few of the highlights and mike and sandra did go through some of the details.

D

There are a few open items that we have and those are typical isle item. -- items that.

D

We would leave open at this time.. Our report highlights significant accounts.

D

Matters as required, and we have included required communications, as required by our professional.

D

Standards around independence and items adjust rising from the audit and a few other standard.

D

Communications., we also have itemized a section around fraud.

D

Risk., we are required to address potential risk.

D

Of material statements due to fraud and we have completed those procedures, including.

D

Whistle blower hotline discussions to staff and if any of the committee members on that.

D

Topic area they are to reach out to both kathy, and I directly at some point following this.

D

Meeting., that is my summary comments and I am happy.

D

To take any other questions the committee may have on the item itself.

A

Thank you very much. with that. I have councillor matlow for questions.

E

This may be a question for, a while back. I requested that there should be a value for.

E

Money audit done with respect to the consideration between the seven stop hour proposal and the.

E

One stop proposal in scarborough and there was no action taken at that. Time.

E

There is a master agreement remaining in place for the city to receive the seven stop hour.

E

With the funding providing by the province, both capital and in ongoing operating.

E

The couns --, the council, decided to increase debt by a billion dollars to support the one-stop.

E

Subway. would in your professional opinion, politics.

E

Aside, but just objectively, would it be wise in those cases to review and analyze the value.

E

For money, audit, with those options in front of us to understand, are we getting the best.

E

Bang for each buck and providing the best service for every dollar spent?.

F

A value for money audit would not be under the service for value audit -- under pwc's.

F

Banner provides those regularly and if it pleased the committee, we would be pleased.

F

To do that., there are a number of audits like that in.

F

Play right now- and I understand your perspective. very diplomatically- responded to, appreciate.

E

That. is it common for various orders of government.

E

To request those types of audits when considering major capital projects?.

E

I I am not sure,, but it is common for auditor generals and other management and other committees.

F

In the public sector to request those type of audits.

E

You tiptoed through that very well, and I appreciate your perspective.

E

To our eg staff,, you mentioned that there has been a 16.3 million increase.

E

I can't remember the number you said each year for the past three years.

E

Do you mean the 11.5%? so there has been 11.5% increase each year?.

E

Qume tivoli. yeah,, that's right.,.

B

There has been a larger amount of tangible at that particular time assets in each of.

B

Those years as well,, so we don't look at one number in isolation.

B

Yeah, you bring it all together.. Would it be fair to say that what is keeping.

E

Us afloat is the revenue from if mltt?. Certainly, revenue from mltt has helped.

B

It's not a panacea and it has helped with incremental changes but atel 800 million. It.

B

Is a fraction of the total revenue of the city.

E

Is $613 million a reasonable and healthy amount to have seen that type of increase, or is it.

E

Irresponsible or how would you characterize it?.

B

I would characterize it as a reflection of addressing state of good repair and build.

B

Out of assets., that is why we have a long-term financial.

B

Plan that is coming to the city to put all of these in perspective.

B

I believe we are better off now than we have been.

B

Where I am going with this is the mltt has been described as unpredictable and unreliable.

E

Revenue stream., we have fixed in property tax revenue around.

E

Inflation and that conversation that we were to have had about revenue has been shifted.

E

Off the table by our municipal and now our provincial government.

E

If we continue to increase our debt load,, are we going to be in a position to jeopardize.

E

Our ability to service it directly or address other capital priorities if we don't have.

G

A known way to pay for it. last question.

H

Through the chair,, perhaps I could response to that question.

H

We are taking forward a report to executive committee at the next meeting that will speak.

H

Too, the operating variance with respect to mltt and we have been tracking that on a weekly.

H

Basis and where our findings are that mltt is actually meeting budget and exceeding budget.

H

There is no question that it has a different risk profile than other revenue sources and.

H

We are somewhat exposed to mltt., notwithstanding that,, we think we have a robust.

H

Revenue base to deal with future requirements,, both capital and operating,, and we will come.

H

Back in q1 of 2019 to address the long-term implications associated with council's objects.

H

Council would like to embark on a program --. We are identifying revenues that would.

H

Meet those objectives. thank you.

I

My first question is to pwc. you mentioned that one of your functions is.

I

To look at internal controls., I notice in appendix c you have two recommendations.

I

But they are ones that you have brought forward in the past.

I

Is it unusual not to find any new recommendations?? I would not say it's unusual and I would maybe.

D

Add the comment that, as part of the audit, we are not required to test every internal.

D

That's outstanding or in place.. We as auditors are designing an approach that.

D

We deem efficient to do so. Based on that testing, we have identified those two recommendations.

D

Consistent with the prior year., you have a chart at the top of page 12. That.

I

Compares toronto among six cities in canada and talks about key financial indicators, not.

I

Clear on that chart whether toronto compares favorably or not.

I

Can you tell me how they compare with the findings on that chart?.

B

We have done this chart for the last number of years, and if we compare ourselves to montreal.

B

We always compare favorably. if we compare ourselves to the cities in alberta,.

B

Which have access to more sources of revenue and more robust gbes? We compare not as favorably,.

B

And, to the extent that we are more than twice the size of any of these municipalities,, it.

B

Is a tough comparison.? We comparators --, we compare ourselves year.

B

Over year and on --, and we compare on most measures.

I

On page 18,, there is a chart there that talks about wsib and increasing 47%. The cost is.

I

Escalateding., what are we doing about that? Cost escalation.

B

I believe most of it has to do with firefighter claims that the province has added over the.

B

Past few years,, so that certainly you can't do much over something that deals with past.

B

Employees and adding past factors., the that is by a large factor, the biggest.

I

Increase., I think that explainings with the chunk of the increase., I understand the cancers related to fire just.

I

Wondering the other piece of it and what we are doing to drive those costs. Down.

B

I know we have actions under long-term disability and others.

I

Maybe just a question for another day. thank you.

A

I just wanted to ask a couple questions, one about the funding from other levels of government.

J

Why have we not been able to sign agreements and which have not been signed?.

B

Through the chair, the ptif agreement was signed,, but because it was signed in 2018, monies.

B

Spent in 2016 and 2017 could not be reported in these financial statements as recoverable.

B

Because there are parameters around the form of how government transfers are done, that.

B

They will be recorded this year and actually the claims themselves are being put in this.

B

Year for recovery. is there any risk that we won't get those.

J

Funds?, there is not risk that we won't get those.

B

Funds., certainly we have told everyone of our display.

B

Displeasure of spending first and getting later.

J

Those funds will come? yes.

J

Is there anything that has affected our position? Significantly?.

B

That would be more of a budget-related question.. I am more responsible for the actuals.

H

It's really early to speck late as speculate on city budgets.,.

H

We are undertake aggressor, review, and there will likely be certain implications and we.

H

Have budgeted for our provincial funding and with a new government that may be compromised.

H

But item early to speck late as to quantum of the amount.

J

Okay, we are budgeting to receive funding for housing and other funds that have come.

J

From the cap and trade revenue stream., I presume we know what those impacts are.

H

We do know what we have budgeted for in terms of provincial funding,. We don't know the details.

H

Of the cap and trade, as well as the specific pro provincial announcements.

H

We engaging queen's park and we will have answer for you in upcoming weeks and days..

H

How much have we budgeted for?? We budgeted an amount in tchc housing,. I believe.

H

$179 million in capital funding., we have some ghp,. I believe it's about 60.

H

Million and there are others. so hundreds of millions of dollars.

H

That could potentially be at risk.. The one thing I wanted to ask about the long-term.

J

Fiscal plan- and we can ask questions because it's on our sheets and in your report.

J

You said we are going to have to sort of face the future,. Those are my words, based on existing.

J

Sources of revenue,, so is it your assumption that we will not see any new additional types.

J

Of revenue in the future., we have been come forth with a new plan in.

H

2019 and that exercise will review revenue options under coda and certain other revenue.

H

Options that we might want to seek legislative and regulatory approvals for through queen's.

H

Park. under coda, we have limited options available.

H

To us. vehicle registration tax may be one, and there.

H

Are others that involve certain parking levies if you will.

H

Road tolls require regulatory changes,, so we will be coming forward with a number.

J

Debt ceiling policy.- I want to ask the external auditors: do you.

J

Have experience with other municipalities and what their debt financing ceiling is.

J

I know the provincial cap is 25% and we used to be at 13.

J

I don't know where we are now.. Where are we now?.

B

Ours is based on tax revenues and knew us revenue us, and we are at 15%.

J

Where do you believe the ceiling could go and still manage the risk and cost associated.

J

With that debt financing in comparison to other municipalities?.

B

The province set an upper limit with other municipalities without regard to how that.

B

Would affect credit ratings or, in addition anything else and the debt ceiling has to.

B

Be looked at other things in terms of revenue that we are --, we will be providing you with.

B

An -- sorry, technical glitch.. We will provide you overview of the background,.

B

Scope, key audit findings and conclusion and at the end management will provide overview.

B

Of actions taken with funding. arrangements include commercial leases, licenses.

J

And agreements and below market rent or community based., the city generates $50 million in rents, annually. multimillion divisions, --, multiple divisions.

H

As the city moves forward,, it's expected that leasing activities across the city will be.

H

Consolidated. we recognize that under the read this audit was initiated as a result of the union station leasing audit we completed in 2017 as well.

H

As several audits, where we had identified the city was not fully recovering its cost.

H

On property properties, leased out., as you may recall,, the city had not completed.

H

Annual year end reconciliations of operating cost and billed and collected amount owing.

H

By anchor tenants for several years., as a result of that, we added to our to 2017.

H

Work plan. in this audit. We wanted to answer the question of were leasing, revenues being maximized or community space tendencies,, and we wanted.

H

To answer our rents and recoveries being billed and collected on a timely matter, and is there.

A

Timely agreements., our findings and conclusions are based on information available at the time the audit was completed,. However, in some cases, math.

A

Couldn't locate information we requested or staff turn over limited staff's ability to answer questions. in 2006, the auditor general conducted review.

I

Of the administration of leases on city-owned property and the recommendations were addressed.

I

In large part, by 2009,, we found similar issues were coming up. Again.. There is a need to ensure actions taken to address things in this report, including process.

I

Improvements need to be continued to be monitored and followed as the business matures and changes.

I

There are three main things that highlight: the need for enhanced focus on lease administration.

I

First, the need for effective auditing and oversight, second collections of rents and recovers,, and the report highlights actions that should be taken as the city moves forward.

I

With consolidating leasing, function. in leasing out city-owned properties, one of.

I

The key objectives is to maximize revenues. parks, forestry enhance the park. Experience.

I

For visitors. city leases should be at market rates..

I

In nearly half we reviewed, there was insufficient documentation to show that they reflect market.

I

Rates., these would include appraisals, market comparisons and market analysis.. We appreciate that there are circumstances where program objectives are prioritized when granting leases and licenses..

I

Some legal leases include requirement for the tenant to complete improvements.

A

We noted that the city did not ensure that all of these capital improvements were received.

A

In full., the city did not receive $2.5 million in committed.

A

Improvements and there wasn't sufficient documentation to verify that other improvements were received.

I

Better tracking and monitoring controls should be implemented to be sure that the city is.

I

Satisfied with the timing, quality and the nature of capital, improvements.

I

This so that the city can maximize the rent in kind it receives.

I

the city enters in long-term agreements.. The rents reflect market rate when the agreement.

I

Was signed and market rates do change over time.

I

We noted staff did not always perform the required rent adjustments and reviews.

B

We found that expired. Legalses leases were not renewed on a timely basis.

B

We estimated 900,000 in revenue could have been ben generated if the leases were renewed.

B

In a timely manner. in one agreement, the city could have charged.

B

$148,000 per year,, which is double the rate, the city billed and this agreement has expired.

A

Over four years and over, if four years, the city could have charged additional $341,000.

A

The recommendations will help the city demonstrate it is maximizing rent revenues, receiving.

A

The full value of the capital, improvements, performing market reviews and rent increases.

A

When required and addressing expiring agreements., certain agreements include where the city.

A

Is entitles to -- share rents, or the recovery share of water.

K

We found annual estimates and settlement of any other owing or due based on actual costs.

K

Were not consistently or timely, performed for a number of legalss.

L

If there were collection issues, we nodeed noted that city staff were trying to take.

L

Action to takeover balances. in our review of a sample of 45 occupancies,.

L

We identified 21 properties where additional rents and properties were not billed and collected.

L

In accordance with agreements., more details can be found on page 26 of the.

L

Audit report. in nine locations,, we identified approximately.

L

$4.5 million in additional rents that have not been billed over time, in some cases dating.

L

Back to 2002. at least $728,000 related to 2017, and these.

L

Amounts need to be billed to commercial and below market rent tenant, tenants.

L

Some of these are discussed throughout section b of the audit report.

L

Given the systemic and recurrent nature of our findings, it is important that the management.

L

Take prompt attention to address the concerns.. This can ensure that the city billing and.

L

Collects all additional rents and recoveries in accordance with the lease agreements., I will pass it back to ina. in moving forward with a new model, actions.

L

To consolidate, leasing began in november 2017. in the first quarter of this year,. They underwent.

L

A new structure to align with the city's model. management is prioritizing the need to -- leases.

L

And establish and implement robust policies.

L

It is need to focus on effective lease administration and math agreed to all 19 recommendations.

L

In the report. these will help to ensure the city meets. It's.

L

Program and objectives, including maximizing lease revenues and recovering rents and operating.

L

Costs and set it is city up for success under the any city, wide approach to real estate.

L

Delivery., I will pass the time over to david scrollymoore.

L

-- jollymoore. good morning, I am the director of services.

L

I wanted to go through just a couple of slides and I want to begin by thanking the auditor.

L

General and her staff for their work on this audit and it's been very complimentary to.

L

The work that has been going on the past couple of years as we transition to the new model.

L

Just to reiterate what the deputy auditor general mentioned is that we do agree and.

L

Support all of the recommendations in the report.

L

we start at the city-wide real estate review in late 2015 and one of the key observations.

L

Was the distributed ownership for the real estate businesses and the fact that we had.

L

Response for delivery across divisions and agencies and corporations.

L

As a result of the review,, we brought forward the report and we proposed a centralized delivery.

L

Model. we did that in 2016 and were directed by council.

L

To report back the specifics with an implementation, plan.

L

We did that in may of 2017 and council adopted the specifics of our model, which comprised.

L

Of real estate, services, division and management, division and new agency to deal with the real.

L

Estate business for the city., that is when we started the new model.

L

To support that new model in may of 2017, we brought a report that consolidated --. This.

L

Helps consolidate a specific practice with respect to real estate matters and on lease.

L

And lease administration., the new models started operating on january.

L

1, 2018, and that is when the new authorities came into effect., to tie the dot to the lease administration,. A key output of our work is the development.

L

Of a city-wide leasing strategy and packityies tieed to the delivery of the city-wide delivery.

L

Strategy and work is underway., the portfolio strategy and the use of, I.e.

L

Space and the space that the city owns and leases out and the need to lease space for.

L

Program, needs., the collection of rents,, the collection of.

M

Additional rents, account reconciliations and treatments of other items identified in.

M

The auditor general's report and thirdly, the performance of the portfolio.

M

Our program, objectives and financial objectives being met in administration of the portfolio,.

M

So we expect to deliver that through the course of 2019.

M

During the course of the city-wide review,, we knew we had issues with the way we were.

M

Doing lease administration. in terms of actions to date that have been.

M

Underway within the consolidated real estate model and in partnership with key divisions,.

M

We commence process reviews in the first quarter of 2017 and worked with other groups outside.

M

Of the operating divisions,, so we have been working with the internal auditing group and.

M

Accounting and revenue services. in q2,, we commenced work on the implementation.

M

Of the consolidated model, as I mentioned, and also mentioned in q4, the centralization of.

M

Authorities. to ensure that there was a plan to transition current work from pm fmr to the city's real estate, division.

M

To ad ministration of leases moving forward to be sure we are manageing the leases ongoing.

M

And collecting the additional rents and arrayments. e. there is continued collaboration with economic.

M

Development and culture, parking, authority, and other corp.s and agencies since the consolidation.

M

Of the authorities under the new model. put in place a dedicated team to drive our.

M

Implementation plans which we have provided in response to audit report and it's foundation.

M

Of four key things, data, process, system, and people and talent,, so we have work streams.

M

Underway that address poils and procedures and development of new pole, as well as tuning.

M

And updating of current pill and business analysis and recordkeeping and management,.

M

A new leasing system.. We are working with a system that is 12 years.

M

Old,- and you know, I guess it adds more challenge in terms of day-to-day work,, so we have been.

M

Working through the it governance process to help us better manage our portfolio,, which.

M

Is highly complex, and then in terms of tactical action, as quickly as possible, is looking.

M

At the high-val opportunities, high-risk opportunities in the portfolio and going after that.

M

That is the last point is review of the agreements and driving based on value and risk.

M

Thank you. councillor hart you held this for questions.

M

But I will open to members of council here today.

M

Good morning everyone, my favorite committee, next to parks and environment.

M

With this whole list of rents that we didn't collect,, how does that happen?.

M

Could you walk me through different scenarios of how we would not be collecting rents?.

M

Through you, mr. chair., there is a variety of factors: related.

M

I want to clarify that the rents are collected on estimated amount of the cost recoveries.

M

And it's the reconciliation process, as david mentions, with a differential between the actually.

M

Cost and where the rents were., the majority of tenants, were paying an amount,.

M

Was that the correct amount is the question. dition through you, mr. chair,, there were several.

M

Locations where utilities were never built, things like water, gas, hydro,, where the bill.

M

Was being sent to the city and not being charged back to the tenant, or there was no metre at.

M

All. and the tenant never fessed up that. Maybe.

M

They weren't paying. part of the issue is relative to tuns understanding.

M

Of what is in the agreement., several of those are commercial in nature.

M

And program-related and there could have been a lack of understanding of what was due.

M

Moving forward,, all the agreements are clear,, they are going to be communicated and well.

M

Understood by both parties- and we will administer them to the letter of the law of what is in.

M

The agreement., this 12-year-old system that you are using.

M

That worries me, so how can we move forward? elaborate on what you are doing for that and.

M

If you need our help to get you there?, we do have real estate module in sap and it.

M

Is 12 years old and it is pretty old and we need to mange sure the staff are well attuned.

M

To its use in the near term, because that is the system that we have.

M

With that being said, we are doing a market scan to look at what's in the market, which.

M

Will allow us to better manage the business, because it is a large,, complex program that.

M

We are dealing with., you are doing some great work.

M

I love bragging about the second floor of metro hall.

L

Do you want to speak on the great work you are doing with leasing and those initiatives.

L

What you are referring to is the office modernization initiative, which is underway, and that is related.

L

Back to the overall real estate, city-wide real estate portfolio plan and one of the.

L

Opportunities is our office portfolio,, which is sizable,, and our objective is to make better.

L

Use of city space to collapse, leased-in space., I will start with a quick question for staff.

L

On page 23 of the auditor general's report, in your presentation, you talked about process, reviews and separation of duties and on page 23 at the bottom,. It talks about the lease.

L

Tex lease expiring and related loss of $341,000.. Can you explain the process around separation.

L

Of duties, so six montreals to close to a year before a lease expires, who knows about it.

L

And how does the process work and there is more than one person is involved and one person.

L

Isn't responsible for missing a renewal. part of the reason why we restructured the.

L

Way, we did was a couple of reasons. one. Is we wanted to better align skills and.

L

One of the key skills is the transactional skills, so we wanted to make sure we had focus.

L

On transaction,, so when negotiating an agreement, we are negotiating the best position for the.

L

City and things that the auditor general had identified.

L

So we have separated that duty from the ongoing maintenance and management of the agreement.

N

Which means we are ensuring that the account is up-to-date and collecting the rents and.

N

Disputes are resolved in those types of things., as the leases come due to renewal and we are.

N

Having a debate about how much time in advance that we flag for action back to the transaction.

N

Team,, so the lease administration team will flag for action. This lease is coming for renewal.

N

And it goes back to transaction team for negotiation. before restructured. All of those duties were.

N

Done by the same function and the same staff,, so we have separated those moving forward.

N

That wouldn't be the same: individual staff person, the same group same group of staff.

N

A couple questions: if for the ag. in the 2006 report,, if all of the recommendations were.

N

Implemented from the 2006 report,, would this wort report be here?.

N

When the recommendations are implemented,, presumably the controls will be fixed and.

N

If they are not, the problem continues., what is generally new in this report that.

N

Wasn't before? the recommendations from the 2006 report were.

N

Implemented by management, largely by 2009, so math agrees that on ongoing basis, they.

N

Need to make sure that as the business matures and the process changes, they keep up-to-date.

N

And they continue to reflect on what additional processes and permits can be done.

N

In terms of newer recommendations,, I think what wasn't captured in -- a lot of the issues.

N

Are the same and we talked about capital improvements where there needs to be better tracking about.

N

Capital improvements, made, and then a lot of them are actually similar.

N

Some that have come up more recently and union station that still aren't fully implemented.

N

But underway with doing it. item a great time to pull everything together.

N

And get it into the real estate review city-wide.. You have to make sure that the controls are.

N

In place, so they continue to operate and we don't keep going through the cycle of making.

N

The same recommendation. thank you.. One of the findings was there was high staff turn over in the department,. So I assume you.

N

Had a high vacancy rate in the department, and wondering what is your vacancy rate and.

N

Have you been able to address the turn over and vacancy?.

N

Turn over continues to be an issue and we have net new business that we have added,.

N

Metro links among other things,, so positions is another contributing factor,, so we have.

N

A plan to address all those,, so we are increasing capacity of the recruitment engine. While we.

N

Fix up the positions, because we have too many, where you can't differentiate between the.

N

Different levels,, so we want to collapse those down and we have been working closely with.

N

Our colleagues in 79 to be able to do that,, which will start to address that issue of.

N

Staff turn over.. Do you have a number on your vacancy rate?.

N

15%. 15? wow,, so is that not a budget issue.? No item, not a budget issue.

N

through the chair,? What I would say councillor is one of the things that we have been doing.

N

With financial planning, we had a lot of roles on the leasing side were temporary and what.

N

We done now working with financial planning is converting them to permanent,, so by doing that,. That allows us to retain people and have a better retention strategy than we had.

N

That is an issue I have tried to get at for ten years with jobs that are temporary.

N

We have converted quite a few on the leasing side, yes.. The other thing you talked about was- and I heard something different just earlier about.

N

End-To-End responsibility for leasing with particular staff so that chunks -- you had.

N

Divideed the work differently, and now you are reorganizing that work?.

N

Yes, so basically, we separated the lease negotiation and transactional piece of the work from the.

N

Ongoing lease administration piece and the lease administration piece was the focus of the audit, and so the findings are related to ongoing management of the portfolio once the agreements are in place,, so we have taken those duties and separated them through our.

N

Reorganization nation of the group.- that sounds opposite of what I thought it.

N

Meant., the other thing that isn't clear to me is.

N

The degree to which the leasing function still reside in all of the divisions.

N

Have you not consolidated them or are you putting in place different kinds of monitoring,.

N

It sounds like you are putting in centralized monitoring,. Why would you not just consolidate.

N

All those leases? it's a bit of both councillor to answer your question.. There is consolidation with the authorities.

N

Being under the real estate model and the transactional pieces are done so we are working.

N

In partnership with agencies and corporations and city divisions on that piece.

N

We need to centralize and consolidate that work over time.

N

Okay, now, the conclusion here is that we have a lot of srai want property that we could.

N

Lease out and make more money- and there is projection of potential loss of revenue.

N

There is the other side that space can be used for city functions,, so I hope that the.

N

Recommendations in here don't drive us to lease it out as opposed to use it for city.

N

Functions. we agree, and that is why the leasing strategy.

N

And how we use the city space we lease out is part of the portfolio real estate, strategy.

N

I know that you are creating an inventory that hadn't existed before. Is that correct?.

N

Have you done state of good repair audits on these facilities to know what kind of capital.

N

Investment is required? that was identified as a problem with the.

N

Leasing administration., so that is part of the city -wide real estate.

N

Portfolio coming in 2019. the leasing piece of that,, that is a subset.

N

Of the overall city-wide real estate strategy. did I answer your question?

N

I think., so you are going to come back with what space.

N

Is potentially available for city uses and the capital costs associated with the repairs.

N

Through the chair,, what the team is doing city-wide is, we are doing the overall portfolio.

N

To your point, and it will cross the city, all agencies and divisions, and we will look at.

N

The state of good repair and the opportunity to long, and where is there, is opportunity.

N

To unlock good land value at the same time. thank you.

A

Are there other questions from the committee members?.

A

I have two actually.. I wondered if I could have comment from. I.

O

Think the auditor on this one., in your view, over the process,. How is it that.

O

The projected revenues from leases- and I guess, revenues from recoveries of payments for utilities.

O

That didn't exist did not square up?. Were there not --, they didn't actually end.

O

Up changing the clauses, or is it too far, buried in the system to see that?.

N

I will answer first, we couldn't see that hydro were even in the system.

N

We had to go to hydro and see which portion had to be allocated to a group.-.

N

How that happened is really a question for management, because we know that it's not right,.

N

How it happened is really a question for math. management.

G

Just to a finer point on that,, I would have thought that the revenue projections would.

G

Offer the check and balance and over time you would see a gap. What was coming in year.

G

Over year in the budget, and is it become, the margins are so thing. It wasn't detected?.

G

The margins are thing in some cases, it was quite substantial, really for all things and.

G

When we are looking at this time and other files is wrapping our head around, what is.

L

It that you have and what should be coming in and having that methodical listing of the.

L

Pieces and components that make up what the listings are. In some cases, the margins were.

L

And really they weren't. So it's for management to comment on how things happened and how.

L

They were missed.. Did you want to make a comment on that?.

N

The portfolio is large in aggregate and item a big dollar amount and based on the interpretation.

N

Of what is in the agreement- and it's not an excuse, but that is the day-to-days reality.

N

In terms of we look at the individual agreement and there might be a difference of opinion.

N

Either by the tenant or the program we support. in any case,, I think in aggregate, it's not.

N

Getting captured- and I agree with the auditor general moving forward,- it is a large portfolio and we have to learn how to manage it properly through the people and the process..

N

We took the top 40 properties and started working from the top-down, and I think that.

O

Would be a good strategy.? There is a little piece buried that today.

O

Out- and that was the lease administration charge and I think I will ask first of the.

N

Auditor and then of staff., I wondered what you had seen in other jurisdictions.

N

About the popularity of the lease administration charge and whether or not it was a tool that.

N

Could help strengthen lease administration because it brings in a revenue stream to help.

N

Offset the costs and help pay for itself. through you, mr. chair, administration fee on recovery of operating costs is something that is not uncommon in the leasing industry,.

N

But needs to be incorporated in a standard lease agreement and I think math can respond.

N

To that as well., it is something that they have and can consider.

O

In their standard agreement and something that would come up in negotiations of the.

O

Lease. going forward, you would implement those.

O

I wanted to continue this question with management and add a piece to it..

O

If we had a look at lease administration charges and building them into leases,, that would.

O

Bring additional revenue stream.: are you already looking at this and is there.

N

A way that you could firewall or separate out the revenue to ensure that it goes back.

N

To hiring up and supporting a system of lease administration be that staff or systems support,.

N

So it pays for itself and there is incentive to make sure that you are on top of the leases.

O

Because that will generate revenue to pay for itself.

I

We are looking at that in the context of what the industry is doing.

I

In terms of application of applying administrative fee,, we have to be careful about how we apply.

I

That policy. for commercial leases, yes, in the cases of.

I

Commune community-based tenancies, we would have to look at that and we are, and we will.

I

Be coming back with that. thank you..

I

Is there anyone on the committee that wishes to ask a question or speak on this matter?.

I

Seeing none., I do have a very small amendment and that.

I

Is to recommendation 18. it's about the lease administration charge.

I

And the recommendation asking the staff to look at it and all I would like to do is add.

N

A piece that says look at it and report back to gmc committee, so we can have a look at.

N

It. this brings in more money and there is a self-governing feature to that. As long as you are generating revenue, you are bringing in revenue to fuel.

N

The machinery better and it runs more efficiently. other than that,. I happy to move the recommendations.

N

Of the report, and with that, I will call for all of those that are in favour.

N

Any opposed? that item is carried. au13.10.. Mr. chair., before we begin another item. If the role of the committee,, I am prepared to release au13.16.

N

The toronto management commission managing contracts and payments.

N

Thank you councillor, ford. is everyone. Okay with that.

N

councillor ford is moving au 13.16, managing telecommunications contracts and payments.

N

All those in favour? carried., we are at review of au13.10. review of urban forestry permit issue wans.

N

And tree bylaw enforcement. that is been held. My me and I welcome you.

N

To make that presentation. thank you., I can assure you that we have 12 slides and three of them are photos.

N

Just to give you background, first. in 2017, the city spent 64 million to protect,, maintain and enhance the city's urban forestry. urban forest,, which is a branch within the.

N

City's parks, forestry and recreation divisions has three key functions: tree planting,, ongoing tree maintenance and bylaw enforcement.. This report only focus on urban forestry's.

N

Permit issuance., we are continuing our other work.

N

and we will report back if needed. to remove a city tree,. They must apply for.

N

A tree removal permit., we saw 3.2 million in applications for an.

I

Estimate of 5,000 city trees and 5800 private trees that are included in the permit applications.

I

Including other permit related fees and deposits collected by urban forestry collected about.

I

30.5 million in 2017. we identified areas that urban forestry did.

I

Well. in 2014 and 2016 it developed procedures for administration of the tree bylaw requirements.. Last year it established a seven person enforcement.

I

Team which helps the complaint response time and frees up staff to focus on permit application. Review. here are some examples of tree protection that you will see around the city.. We will talk about three concerns and briefly.

K

Touch on each of them. first area is weak, controlled and insufficient.

I

Management oversights,, so urban forestry does not have adequate information systems to support.

I

Permit functions and management oversights. there are no effective control to prevent.

I

Or detect an authorized permit., it's current system in place since 1998 was.

L

Not designed for permit functions,, so staff used excel spreadsheet to print permits and.

L

As we know, it can be easily copied and you cannot track how many permits have been printed.

L

From spreadsheets and multiple staffs in each office have access to the spreadsheets and.

L

We found that the property data is not properly tracked in the system.

L

The number of trees included in the permits,, which is a calculation based on the number.

L

Of feet, divided by the application fee to come up with that number,, and it's not a number.

L

That we can extract from the system.. This also caused significant delays in our.

L

Audit process and we could not use our normal auditing software to analyze the entire permit.

L

Data set.: we have to sift through a lot more even to.

L

Extract a small number of relevant file for our review, purpose.

K

There is no requirement for supervisory review,, so we know that there are incorrect calculation.

K

Of permit-related payments by staff. we reviewed 28 tree removal, applications and.

K

Noted that cash in lieu of replanting were collected and the resulted in miscollection.

K

Of about 20% of the required cash in the 28 samples we reviewed.

K

We also reviewed a sample of approved application for the removal of city trees and the applicants.

K

Should be required to pay a price tree value and in three of them they were not asked to.

J

And in one of them the staff told us he didn't request that, because he had a backlog of work.

J

Urban forestry doesn't check requirements for the planting requirements,. So when people.

J

Apply for the tree removal permit,. They are required to plant a replacement tree,. It could.

N

Be one or three,, so there is no deposit,, so compliance is really relying on home homeowner's.

N

Compliance with that,, so we do recognize it's not possible to send staff to every site to.

N

Check that,, but there are more efficient measures such as asking for photos of the tree plant.

N

Or a copy of the nursery receipt to show they did purchase the tree.

N

There are measures they should consider putting in the program.

N

We noted in consistent practice among district office,, the staff determined that price true.

N

Value --, that is, a lack of control over issuance of permit exceptions.

N

Under the bylaw,, the applicants may be granted exceptions so that they don't need a permit.

N

To remove a tree. for this instance, a permit, the not required.

N

If the tree is in danger of causing damage or injure to life or property,, so when exception.

J

Is granted the applicants can remove the fee without paying any application fee or any.

J

Other fee and they don't need to replant a free,. There is no planting requirement that.

G

Applies., we cannot tell you how many exceptions have been approved every year from the system and we have done our best estimate and sifted.

G

Through the data- and we can tell you every year- there are at least 700 exception requests.

G

Come in,, but we cannot tell you how many have been approved, because we couldn't review all.

J

700 files, we know that in three, the tree was necessary, but not dangerous..

J

We consulted the staff who approved the exception or the supervisor in charge, and they agreed.

J

That the tree was in poor condition but doesn't meet the exception. Criteria,. However, they.

J

Granted the exception for the apply want can't.. We noted that a charge amount of unclaimed.

J

Deposit. they are required to pay a deposit when they.

J

Remove a city tree, and it is refundable,, but they have to notify urban forestry for.

N

Plans two years later, when the tree is in good condition and the staff will need to.

N

Verify that the tree is in good condition and then they will refund the deposits.

N

As of february 2018,, there was a plan of 29.3 million in refundable deposits collected between.

N

1994 and 2017,, approximately 19.5 million, was collected prior to 2016.

J

Urban forestry does not have a pill to address old, deposits.

J

There is no criteria to consider old depoise, its poz its, and they have specific process.

J

To address these., they rely on staff to follow up on unclaim.

J

Claimed deposited when it is allowed., they have not done a review since 2008.

J

We note there were instances where homeowners actually asked urban forestry to come and.

N

Look at the tree so that they can get the deposit refund,, but there is a lack of action.

N

From staff to follow through to attend the site to verify whether the deposit can be.

N

Refund. ed. there is a problem that urban forestry doesn't have a clear guideline to help staff to decide.

N

Under what circumstance certain deposits may be considered forfeit from the applicant,.

N

So this may cause duplicate, multiple innings. inspections..

N

This is an example we included in the report. this is the case history of one file,. So in.

J

2005, the applicant paid 2900 in planting a tree, planting security deposit for five.

J

Years. in november 2006, the staff inspected the site.

J

And verified the trees were planted, however, they could not refund the depoise pose it.

J

Because they have to wait for two years. between 2009 and 2016, the inspectors went.

N

Back to this site six times on different locations and every time he went back,, he said the same.

N

Thing he said some of the trees were not in good conditions and the homeowner need to.

N

Take corrective action,, but the next time we went back it's the same thing.

N

So, as of february, this year,, the deposes deposit of this $3,000 that was received 13 years.

J

Ago remain on told, hold and the file is still hope.

J

Open., we see cases where the inspectors should go back and on the other hand, we see there are some cases. The inspector did keep going, back,.

J

But there is some indication that the how many the homeowner is not in compliance with.

J

Maintaining the tree- and there should be a pill that, under that circumstance, that would.

N

Be enough and we consider the deposit forfeit by the applicants and that underscores the.

N

Importance of making sure the management, the process is effective and efficient.

N

Want to shoe, you show you a couple of pictures. ant on the my left, one that is damaged.

J

On the right-hand side, significant damage, but a trench that was too close to a tree.

G

Our last concern relates to lack of incentive for the bylaw with compliance.

G

Applicants who apply for permits are required to pay certain fees., but those that remove certain trees are not required. To., the green column,. If you want to remove a city tree for construction purpose,, the person.

G

Would need to pay construction application fee of 334 assumed appraised value,, assuming this is a sugar maple. that would be $3,400 for value and they have.

G

To pay cash in lieu of replanting and in total it costs the ap lay can'ts.

A

Ly, can'ts $4,317. if an individual who illegally removed tree,.

A

And if this is reported to urban forestry,, the person would need to pay a fee of $699.

A

There appears to be no authority for staff to require the rest of the fee.

A

They can request the individual to pay for the rest of this fee on the warranty basis.

A

But not under the current bylaw they can not require that so the existing bylaw are not.

A

Conducive to compliance., our report contains 12 recommendations to improve urban forestry's issuance and bylaw. management agreed to all 12 recommendations.

K

And they have taken steps to address many of the recommendations.

K

This concludes our presentation.. Thank you councillor, mc --. I know you have.

K

Questions on this. do we have a standard for a tree protection.

K

Zone? yes,, we have standards and those two are examples.

K

Of standards., the hoarding is where we can't have it, and.

K

The snow, fence, and road allowances. what percentage of people in toronto use these.

K

Tree-Protection zones, when you are out inspecting?, if you apply for a tree permit, you have to.

A

Comply with the tree protection zones.. So what about forestry and buildings,? How.

A

Well, do the two departments work together? through the chair, we have through the results.

A

Of this audit, but also through ongoing work or beginning to work together with building.

A

To see how we can streamline the inspection processes, if that is what you are asking.

A

Yeah., that is part of it.

A

by the way,. I have a question about. Why do we call it permit to -- a tree? I feel like.

K

It should be called permit to protect a tree, and I feel, like semantics is misleading, because.

K

Residents who are worried about the tree who live nearby, get all bothered, why,. They are.

K

Going to injure the tree, and the homeowner,, the builder is thinking hey,. I get to injury.

K

The injure the tree. it's misleading.

K

tree injury is an industry term around the process of maintaining its survival.

K

These are terms we use in accordance with guidelines that are out within the industry.

A

I degree agree with you that the word injury can be misleading to public and residents.

N

Who are not aware of what that means and something that we can consider both in how the bylaw.

N

Is worded,, but also in the kinds of communications that go out with those notifications around.

N

Tree injuries., okay, back to this forestry and billing situation, I am dealing with right now on the beach., the how many forestry signed off to injure.

N

The tree, because apparently there was no shoring in the plans that forestry saw.

N

Buildings are saying that -- is required and tor forestry is saying, then it will be remove.

N

The tree and not be injure and neighbours are going crazy.

N

Are buildings and forestry in the same room reviewing these applications together sitting.

N

Down face-to-face? through the chair to the councillor,, we don't.

K

Sit in the same room, it's a process. when they apply for a building, permit, buildings.

K

Gives them a tree application and we look at drawings submitted? We would not require.

A

Shoring or such., if there is no shoring identified and the tree can with stand it,, we would put a release. if they come back with changes to the drawings.

A

We have to change our position and if the --, we are not at that point yet,, but we are.

A

Working closer with them to look at solutions and with city planning, so hopefully in the.

A

Future we will have a better working relationship,, but at this point we are reliant on other.

A

Divisions giving us information required for us to make a decision.

L

I did want to ask forestry, what is your vacancy rate.

L

Through the chair. the subject of this review tpppr,, there is.

L

A few things going on in the staffing,, so the only real vacancies that we have now are.

L

Just as the leasing folks have indicated that we are in process of converting temporary.

L

Positions into permanent positions,, so if council remembers,, we had a compliance project.

A

That was offset by revenues collected through compliance fees and we have made that current.

A

Which was approved by council and the other vacancy are specific to compliance officers.

A

And we are very close to a very near zero vacancy rate.

A

There are a lot of areas in the recommendation that are outlined to achieve the recommendations.

A

Because the processes are current, lyman yule, would manual..

A

We will be reviewing what is required and including it as part of the 2019 operating.

A

Budget process., I saw that., so there were recommendations about training and about greater oversight in terms of supervision.

A

And recommendations for new methodologies for compliance and inspection and all of those things which required additional staff.. So there will be request for additional staff?.

N

Through the chair, as indicated in this report, that was our response that we would be putting.

N

Together acase around case around the additional staff require, and they would be required for the manual inspections.. The difference between you putting in a business case and the budget case coming to the political level is there is a process in between that.

N

Oven means we don't see your business cases and we don't oven, often see what other changes.

N

Are made., I guess what I'm really asking is? Will we.

N

See., I guess maybe to --: do we have any financial any budget folks here? through the process,, we will put up a business.

N

Case as an enhancement to our budget through the process that is right now and through.

A

The recommendation of this report, it will be included ined for council to consider as.

A

Recommendation of this audit. we see financial management's recommendations,, so I trust that we will see in some form in the analyst notes what is needed to achieve.

A

In fact, last year, someone requested,, I think it was the chair, requested to identify what.

A

Was in the operating budget to achieve compliance with the auditor general's recommendations,.

A

And I remember financial management strappableing or it was the auditor general trying to quantify whether or not there was sufficient funding to achieve those recommendations.

A

anyway. ,. Those are my fe --. Those are my questions..

A

Do we have a standard for diseased trees that constantly are being looked at that have issues.

A

Year over year, is there sort of a guideline that's in place, so that if a tree is continually.

A

Causing problems but still healthy, that we look at that differently than we would a regular.

A

Healthy tree?, you may have a tree with a specific tree disease.

A

And what the approach is to dealing with that ongoing basis.?

A

There is a science behind how we expect tors interpret the health of a tree and signs and.

A

Symptoms,, so we would treat a tree that is terminally dissed.

A

There is industry standards and a whole bunch of science behind it.

A

When someone goes out to inspect a tree, yes,, there is science, but there is is interpretation.

A

By the arborist?, certainly when you see your doctor, they are.

A

Going to make interpretations based on signs and symptoms and arborists are the same way,.

N

Generally, two years minimum of college, if not five years at university, to identify the.

G

Tree species and how they grow,. So it is subject to interpretation, but they use a number of.

A

Factors when diagnosing a tree's con., it has to do with the history of the tree.

A

And the species in its growing environment., how do we ensure, then, that there is a standard.

A

Around that? I mean we have dealt with an issue of a tree.

A

That was sick for ten year and the arborist said: no, can't cut it down or do anything.

A

Through the chair, I understand so what happens is what validates our position is that the.

P

Private homeowners has to produce an an arborist report.

P

The ones that produce these are certified and there is a code of ethics and conduct.

P

That they have to conduct themselves with and nine times of ten we are in agreement.

P

So there is that collaboration taking place. when we are in disagreement,. We generally.

P

Apply a blind second opinion.! I am talking more about city arborists, who.

P

Have one opinion and you bring another out., a city-owned tree?.

P

This was., the onerous, would be on the city to make the.

P

Assessment of the tree., the next question: how do we protect --, privately.

P

Owned trees. yes.: they are the responsibility of the homeowner from ongoing maintenance and tree health perspective,.

P

So if there are issues with privately owned, trees reported to us through either 1-1 or.

P

Other various sources, they will inspect the true and if there is danger with that tree,.

P

They will issue order to the how many homeowner or property owner to mitigate those dangers.

P

And over time, if they are not mitigate mitigated,, the city will go and make the private tree.

P

Safe, and then charge the cost of that back to the homeowner.

P

What if it is a privately owned tree that caused damage and continued to cause damage.

P

And we as a city is a, no,. Sorry, you can't cut it. Down.

P

Not sure where it is causing damage and without a specific it is hard to answer, because there.

P

Is many different instances and types of damage and inspections and whether it's a privately.

P

Owned tree, causing damage to another private property, there would be responsibility between.

P

The two homeowners to come up with an approach. okay.

P

Last question. in the few of my residence in my ward, is a.

P

Forestry is difficult to work with from a community level. Automatic answer is no,, which.

P

Means you have to appeal, which to them is a money-grab issue.

P

If you are applying to take down a tree,, then it is just a money grab, and then they are.

P

More likely to cut the tree down illegally or if it's appealed and has to go to community.

P

Council,, they approve it, automatic, no from full council, because you have 44 people saying.

P

No to a tree that has a specific issue in one ward.

P

How do we change that mind set of residents, because that is often why they cut down trees.

P

Because there is no penalty really, if you cut down a tree illegally in your backyard.

P

These are the reasons and the objectives around the tree. Bylaws all together, is to put standards.

P

In place how trees are treated and all of these are approved by council.-.

P

We have submitted many reports over the years and we approve more tree removals and injures.

P

Than deny, and in most cases when the requests come forward,, there are real reasons why the.

P

Tree should be removed, ether, either it's a danger of structurally unsound,, all sorts.

P

Of reasons., when these requests come forward to us and.

P

Urban forestry does not agree,. These are disagreements between the health of the tree and the we.

P

Try to communicate as much as we can and the appeal process is there for those that don't.

P

Agree with the process. thank you.

P

Any other members wishing to ask questions?: did you have other questions?.

P

Just one., is it the consent of a committee to permit.

P

A second round? I am seeing yes.

P

Please go ahead., I want to ask for the exceptions, and why.

P

Don't we require a replacement for an exception?, a replacement tree planting.

P

Through the chair,, I don't believe that's fair.

P

In this case, the exception mean it is tree, is hazardous, dead, and not contributing to.

P

The canopy or our goal of a 40% canopy cover., if we, the canny pink structure, isn't contributing.

P

To the canopy goals., it's when it is in poor con, we ask condition.

P

We ask for the tree canopy to be replaced with another tree.

P

So we heard that, in order to abstain, an exception, it needs to be in poor condition or imminent.

P

Danger., how do we determine that??

P

I have parents who call me and they have a black walnut tree out back and they feel it's.

P

Imminent danger that the walnuts are going to fall and harm their child and to them that is imminent, danger, like who decides? through the chair specific to black walnuts..

P

This was a request that came to council last year around exempting black walnut trees in.

P

The requirements and through the staff and other municipalities and other bylaws, council.

P

Approved that black walnut trees, although can you somebody what annoying? Because of.

P

The type of the tree they are did not qualify for exception under the tree. Bylaw.

P

We look at provincial and industry standards to create the reference around how we make.

P

These decisions, so they are not discretionary and there is many different types of trees.

P

And different things that fall from trees,, so these are the types of determine neighs.

P

Determinations we make when we review these requests..

P

Do you ever inform the councillor of these exceptions?.

P

I remember one in councillor davis' board that the pine needles will flying through.

P

The window into the baby's window and piercing the baby's skin.

P

We didn't consider that imminent danger, because if we didn't, we would remove all of the pine.

P

Trees., this is the kind of information we take into account the kind of type of trees and trying to create fair guidelines that we follow.

P

So it doesn't come to us. We try our hardest. seasoning to avoid us?.

P

Is going in that particular instance.

P

Every property and every tree is different and some of the decisions, there is some level.

P

Of discretion involved, but we abide by the tree bylaw and poils and procedures in it.

P

As best we can at all times., so you try your best to retain and preserve.

P

The tree. that would be our first goal.

P

Correct. any members of committee that want a second.

P

Round?, I know a lot of the analysis here has to do.

P

With recordkeeping and systems to monitor all of these things.

P

I know at a previous meeting I asked: do we keep records as part of our ongoing objective.

P

Of increasing the tree canopy by 40%., do we keep -- to 40% --? Do we keep records.

P

Now of trees that are removed through the development process, because at that time I.

P

Was told -- we keep words certainly. the records that we currently keep as noteed.

P

In the audit are manual and rely on an old system.

P

When we apply the new system, that is a new system --, we will have better data and track.

P

Consistently over time, the types of things that you are referring to.

P

The types of gathering that data won't be manual and there will be automated approach.

P

Where we can get that information and then connected to the tree, canopy work that we.

P

Do every few years., I know that we record what we plant,, but there.

P

Doesn't seem to be a systematic way of reporting what was removed.

P

I still don't understand the answer to councillor mcmahon's question and the audit.

P

If you remove a diseased or dying tree,, you do not have to replace it?.

P

Through the chair, that is part of the bylaw, it's not necessarily an item. That's been reviewed.

P

In this audit, but as jason noted, but the reason you don't have to replace a diseased, dying.

P

Ordaining rowse tree is that, in terms of the bylaw, the removal of that tree will advance.

P

The tree canopy goals by removing an infected, tree, or removing a dangerous tree that could.

P

Do damage to property or another tree., the approach and the thinking behind that.

P

Is we don't want to deter homeowners from doing the right types of maintenance of trees.

P

Which includes removing a dead tree at a cost to the homeowner, and there is a cost associated.

P

With that., I should say that the city does have a tree.

P

Planting program that will provide homeowners with replacement trees if they choose to replace.

P

It,, which would be at no cost to the homeowner. the program that plants private trees is through.

P

Leaf., it is through the city..

P

I think we should review that poil. thanks. councillor mcmahon.. Thank you. I wanted to thank staff for this.

P

Interesting report and thorough recommendations and glad everyone is on board to follow them.

P

And look at them. one of the number one things, next to cars,.

P

That we hear from is trees,, and you know they are so valuable to our city, and we all know.

P

Why- and I won't get into all the reasons for the benefits of a tree.

P

But it's just very frustrating, especially with construction around our trees and libertiess.

P

That some builders and how many homeowners take with trees and when they are gone, they.

P

Are done, and we have had our problem with the dutch elm disease and the em emerald ash.

P

Borer beetle and hearing about a disease called oak wilt, that is in the state that could take.

P

Our oaks,, so we all need to be super mindful and I know forestry.

P

It is a lot of work, and they can't just whip a bylaw officer out when someone is taking.

P

Down a tree illegally and people do in this town, unfortunately take liberties.

P

I am glad we are doing this report and I won't be here for maintenance and planning unless.

P

I amount other side,, but I am just glad that we have this report.

P

Thank you., I will just speak quickly and I want to thank.

P

The auditor for this report and it brings up a lot of issues I have dealt with in my.

P

Ward., some of the experiences that I have gone through,.

P

We had a house on one street that had a black walnut tree, t and,, and the tree is enormous.

P

And the walnuts finding from 80-100 feet and caused damage to landscaping of the neighbour's house, broke glass tables and put holes in a sandbox where kids were playing. And I had.

P

Another tree that was approved by community council to be taken down.

P

It was a very large, spruce, tree.. The resident's father had planted it 60 years.

P

Ago, when he built the house and at that time it was a small sapling and planted it too.

P

Close to the house, and the tree is now enormous and in one of the wind storms, it was denied.

P

At council.- at one of the wind storms weeks ago,, the neighbour sent me video of the tree literally lifting a foot out of the ground, and this is three.

P

Feet from the house,, so I believe that tree has now been approved to be taken down,, but.

P

I think one of the reasons,- and I want to thank jason for his hard work, because she.

P

Come he comes out to a lot of site visits that maybe he shouldn't have to.

P

I think one of the reasons people decide to take trees down is because it goes to full.

P

Council and not all counselors are at all meetings to hear why community council approved.

P

The tree removal., whether it's a walnut tree and their child.

P

Has a severe walnut allergy and the doctor says, take the tree or whether the tree has.

P

Caused a lot of damage., they will talk to their neighbours and the.

P

Neighbours say just take it down and we won't report you, just take it down, because there.

P

Is no penalty., I think there is still work to be done,, but.

P

I want to thank the auditor for this report.. I wasn't going to speak, but now I feel compelled.

P

To., I want to draw everybody's attention to page so of the auditor general's report where it lists the city and toronto's reporting requirements.

P

Appear to be the most stringent., we have these issues with trees coming down.

P

But in the last wind storm in the area I live in, there was all kinds of huge trees down.

P

And they are all healthy trees.. Anyone could have applied for application.

P

To take them down and it would have been denied and rightfully so, but the wind took down the.

P

Tree and enough wind will take down the tree. trees. Can they be dangerous?.

P

Absolutely,, but we have to preserve the healthy trees that we have..

P

There was talk about when people disregard process and remove trees that they could go.

P

Back and go through a process and be charged that amount.

P

My view is, if they blatantly disregard our bylaws,, we take those folks to prosecutions,.

P

A completely different way to handle it and way better message and more money. Involved.

P

We had one in the ward that I represent, that was tens of thousands of dal lar dollars,.

P

That would be my spin on it. when you avoid a process in the city, pay.

P

The consequences., we didn't really ask questions or I haven't.

P

Heard anyone comment object: accumulation of the unclaimed fees.

P

I do hope, when the report comes back with recommendations from finance, that those fund.

P

Get dedicated to forestry and those funds are allocated to expanding the tree. Canopy.

P

This is a department that need additional staffing. If item going to be able to achieve.

P

And deliver on the recommendations that are in the auditor general's report.

P

So often we have goals and objectives and approve policies, but don't agree to provide.

P

The resources necessary. when we introduced the private tree bylaw.

P

It's clear that we didn't get in place the systems and staffing to do the level of monitoring.

P

That was required,, nor have we put in place the training to ensure consistency across.

P

The division,, and so I hope, when the budget comes forward, that the councillors around.

P

This table agree that these funds need to be put in the budget if we are going to achieve.

P

These objectives. far too often these budgets come forward and.

P

We say we are working this way and we will start with a cap on the tax rate and then.

P

Figure out what we can fit in, and that budget process and people's approach to the budget.

P

I think has got to change. if this committee approves these recommendations.

P

Today, they should be voting for a budget that achieves them.

A

You know,, I think it's the height of the hypocrisy, to assess how our divisions are delivering.

O

When we don't provide them the resources. to say we don't abide by the law and we don't.

O

Have objectives,, then we give them the resources., almost every division to putting in new systems.

Q

To achieve greater efficiency and do the things we want them to do, but we don't provide them.

Q

The funding., as councillor mcmahon says I will be sitting.

Q

Other there come budget time to remind all of you on this report.

O

Thank you. with that on the adoption of the recommendations.

O

Of the report, all those in favour? carried.

Q

Q

Number 11 to the end of the cue. councillor davis.

Q

I thought there was a presentation.. There isn't one, okay.

O

I thought there was buried in the pile.. I was quite shocked by this report because.

O

We can talk about all these divisions, but this is a massive budget.

O

This identified serious problems with our inspections for the certification of substantial.

R

Performance., I want to say thank you first,. I know I am.

R

Asking questions. you are asking questions, okay.

R

And the charts here are 70% of files inspected and points out serious deficiencies in certifies.

O

Substantial performance and ensuring warranties are met and reviewing that the deficiencies.

O

In the end were rectified in these accounts., I know you have put in here and you have got.

O

Continuous improvement and you are putting in place dashboard notifications and so on.

O

Please tell me specifically and really clearly, what steps are being taken to ensure that the deficiencies on these capital projects are getting dealt with in a timely manner,.

O

And that what we pay for, we actually get.. The fundamental issue was lack of documentation.

O

And proper bookkeeping, if you will., there are without question errors on behalf.

R

Of staff, in terms of failing to make entries into if system.

R

We have a project tracking portal that there is an expectation they will make data entries.

R

Going back to 2015 when we had procedures and manuals in place that were reflective.

R

Of 2015- and we continue to make changes to that even to our project tracking portal in.

R

Terms of its reporting back not only to project manager reporters but to project managers.

R

As well., so you are confident that there were cert cat certificate of contract completion granted before the projects were completed in the sample. That was taken.. There are three tables in there that are shocking.

R

To me, where 70% of the deficiencies identified were not cleated completed,, so are you telling.

R

Me that is not the case and that it is simply a matter of the records weren't, there, and.

O

How do we know that?, how can we be assured?.

O

Through the chair,, all I can comment on is there a two-year warranty period and staff.

O

Do follow up ensuring that the work has been completed.

O

If there are specific examples, I would welcome those so that we can follow up.

O

Staff do at the substantial completion stage found they were not documented.

O

Maybe I will ask the auditor general. if they weren't properly documented, how do.

O

We know that they were completed or the deficiencies were corrected and payments were made.

O

Thank you, and through you chair., we couldn't find the documentation to substantiate.

O

That all the controls, all the work and the deficiencies were rectified.

O

The policies were in place and the organization is generally tight.

O

We couldn't find the documentation to support these,, but to say whether the deficiencies.

Q

Were rectified, we wouldn't find evidence to say that.. The head of engineering has said it is tightened up,. So we can monitor to make sure that is.

Q

The case., when you don't have the documentation, and we can't go out and verify on the job,, we look at the organization,, they do have pretty.

Q

Tight policies. we are going to go back in, and phase ii is.

Q

Starting, so we will verify that, as the head of engineering has said, that the documentation.

Q

Is there.? Are there staffing issues as well.

Q

Last question. through the chair,, so yes, it is recognized, it is quite high and we have had challenges filling our senior positions..

Q

What is your vacancy. roughly 8% to 10%.

Q

anyone else wishing to ask questions? anyone wishing to speak.?

Q

I don't have a motion,, and I hear what the auditor general is saying and I am pleased.

Q

That you are going back to actually look again at whether or not inspections are being carried out and whether the certification of performance informations are being done, and the recordkeeping.

Q

Is being done and whether the deficiencies are quantified accurately and whether the.

Q

Deficiencies in the end are corrected. looking at what is before us is very concerning.

Q

If 70% of the deficiencyies are not being corrected,, which is what this appears to say,.

J

In at least one of the charts,, this is a hundreds of millions of dollar budget, and if we are.

J

Not getting what we are paying for and we are not inspecting to determine that, or at.

J

Least documenting to confirm that,, then as a councillor,, even though it is tight, department,.

J

There need to be more tightening done,, so it can be demonstrated to us that projects.

R

Are completed in a timely way, and to the satisfaction of the city.

R

Thanks. thank you. anyone else, whereing to -- anyone else wishing to speak, seeing none.

R

adoption of au13.12. all in favour, in?

R

opposed? that carries. we are at au13.13.

R

want to speak. councillor hart., just a point to the auditor general. on page 2 of your recommendations. You talk.

R

About bulk purchase once again for fuel., I have seen that in other reports of yours.

R

And seen that in other reports of the former ag., I'm not asking you a question,, I am speaking,.

R

But I just would hope that we don't see that recommendation in future reports.

R

I can recall seeing that pull bulk purchase of buell feel --. I recall seeing that over.

R

And over again. I will speak very briefly and I have a motion.

R

On that, and I will say a couple of quick things: here.

R

It was refreshing to see the auditor's comments in here and her finding was that things are.

R

Doing quite well at green lain. lane., and I appreciate the diligence of work and the number of things brought forward and there.

R

Is a gem in there about bulk fuel purchases that transcends the items of just green lain.

R

Lane and can we get a discount on large volumes of fuel and then pass them on to our contractors.

R

I think that is a very good thing.. For that reason, I will adapt one of the recommendations.

J

That says: go think about these things and request that the report go back to management.

J

Committee, so we can look at this with the committee and council.-.

J

Is there questions?, I have a question.

R

Would you see it as friendly amendment to refer it to the trance transformation officer.

R

As I believe he is looking at this through his procurement review?.

R

I think that would be totally friendly amendment as long as we don't refer the whole amendment.

J

If the clerk is able to get some words in there.

J

Is it okay, if the city council, reconnection the general manager chief fleet services and.

J

The city financial officer to consult with those divisions.

J

Is that agreeable to you. all those in favour of the amendment?.

J

Oppose? on the item, as amended, all those in favour?.

J

That carries. thank you.

R

We are at au13.14., we are mindful of time before the break.

R

Auditor general.

R

My usual question. when you look at the response to the city.

R

Book to the bellamy requirement and one of the issues was, the city was buying it equipment.

R

And software they didn't need.. The response happened to this inquiry happened.

R

In 2005 and any of the recommendations in here were addressed in the city, manager's.

J

Response in 2005 wondering why we have gone from 2005 to 2018, with much of the recommendations.

J

Still out outstanding., I think that is a good question for the cio.

J

Who has been in charge since 2013.? I think it's partly the way that we have operated.

J

In a decentralized manner, with each of the strong divisions having strong control over.

J

The purchases of their assets., we saw the same thing on the security side.

J

And didn't provide for a holistic framework and I would say fabric.

S

In my security report, I have made it leer clear that you need one person in charge to.

S

Make sure everything is done and if they have need it's coordinated from a cio, so management.

S

Is done from a centralized perspective, so we are not overbuing.

S

Buying. we have made on recommendations on two reports.

R

For it., when we responded to bellamy in 2005 that.

R

Is exactly what we said? We would do. any other questions?.

R

Seeing none anyone wishing to speak? seeing none, I suggest that we adopt the recommendations.

R

Of the report,, all those in favour?, that is carried., we have eight minutes before lunch. I have au13.17,, which is also it related manner.

Q

Had questions on this.

Q

Do you think we can get this through before or do we need to extend?.

Q

Dit ditto to the previous reports.. It has addressed most of the concerns,, an.

Q

Again, I will say we are seeing a report that has the same themes and something that staff.

Q

Should be aware, of,, which I am sure they are. thank you.

S

Anyone else wishing to speak? all those in favour of adopting the recommendations.

S

Of the report?, all those in favour?.

Q

Opposed., that is carried. au13.19. councillor matlow. We have about six minutes.

Q

To go, do you think you can get that covered or do you suggest we have a break.

Q

So councillor matlow au19., I recall back in the under the former a.

Q

G. this was a priority of his and we would move motions to support this as well to gain.

Q

A better ability for your office to be able to successfully audit the kind of quasi external.

Q

Agency and make sure their processes were better airlineed with our aligned with ours.

S

And integrated auditing in general., how has that gone in general, since back in.

S

The days when a. g. griffiths was pushing for it as we were,.

S

Have we made progress. through you chair, I could you are speaking.

Q

About the shared services. yeah.

Q

We haven't done a shared services, update expect for the report that came when I first came.

Q

To the chair to the auditor general, there was an update on a number of studies done.

Q

Across the city. we are embarking on individual reviews, and.

Q

One of them is fleet., we are going to review fleet of the city and.

S

Look at that more broadly,, so we are looking at the.

R

Fleet work with lord briarly's team and we have work on fire and a little bit work into.

S

Ems,, so we are going to go section by section, but the work we are doing contributes to the.

R

City-Wide coordination., we are looking at each of the individual areas.

R

Looking at these, just the small number of agencies and corporations just to site your.

R

Own comment here, as of december 31, 2016,, ten audit reports with 71 outstanding recommendations.

R

And of those 17% have been fully implemented., you know, I ask you again: how are things going.

R

With respect to whether it be shared, services, yes,, but also having them to recognize, they.

R

Are part of a larger body, rather than running their own.

R

Thank you for the clarity on the question.. I feel they are implementing where we bring.

S

A report forward, they do take it seriously. if they do not,. I will recognize that in the.

R

Report as part of the follow-up report., what I can say, is, there is a lot of work.

R

Happening behind the scenes- and they are not quite there.

R

We pick up the outstanding recommendations,, but some of those might be new and might take.

R

A little bit of time., I want watch to see whether they have moved.

R

On at a pace that I feel comfortable with- and I can say they are doing, that.

S

I don't believe I have seen a corporation where they have ignored or not implemented.

S

Is it more structural challenges that they are.

S

S

A different way and trying to figure out how to integrate.

R

Some of them are big. Asks. wheeltrans is a big ask.

R

They have had an analysis done and confirmed our findings and they are changing large inventory.

R

Systems to realize those savings., I do believe the cfo takes everything seriously.

R

Toronto parking authority., I reck nile that -- is new.

R

Tpa, yes, governances, put under quasi supervision, but why can't be there an audit of their real.

R

Estate activities, given the questions raised about more than one.

A

Thank you. We had an awe it audit and 2015 and then a recommendation.

A

They have another item and I will be hopefully reporting back on that as soon as I can.

Q

You believe that matter is going to come to the tpa board or where is it going in.

Q

The structure is that I report to the tpa board and then through the committee, so it.

O

Will get to the tpa board when I report through the board.

R

I was wondering if it would come to this committee itself.

R

I have to say the work has been completed on that project and simply writing a report.

O

Is going to be.

R

A small report, but given the last minute work on the fire audit,, the volume was such that.

R

We didn't get to finish off that piece. will.

R

A portion be public?, yes, it will.

R

Time is 12:30. We will recess to 1:30.

O