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Home My WebLink AboutFinance and Administration Advisory Board 1992 ~ Working Together for Tomorrow's Greenspace 'the metropolitan toronto and region conservation authority minutes C-1 MARCH 6, 1992 FINANCE AND ADMINISTRATION ADVISORY BOARD #1/92 The Finance and Administration Advisory Board met in the Humber Room, Head Office, Friday, March 6, 1992. The Chairman called the meeting to order at 8:30 a.m. PRESENT Chairman Richard O'Brien Vice Chairman Patrick Abtan Members Maria Augimeri Brian Harrison Frank McKechnie Peter Oyler Jim Witty Chairman of the Authority William Granger Vice Chairman of the Authority Lois Hancey ABSENT Member Eldred King MINUTES Res, #1 Moved by: Jim Witty Seconded by: Peter Oyler THAT the Minutes of Meeting #7/91 be approved. CARRIED DISCLOSURE OF INTEREST Maria Augimeri declared a conflict, in that her husband is the Chairman of the Workers' Compensation Board, in item 1 issues pertaining to the Workers' Compensation Board, 1992 Budget, and did not participate in discussion or vote on those issues pertaining to the Workers' Compensation Board. Patrick Abtan declared a conflict. as an employee of the Scarborough Board of Education, in item 8 issues pertaining to the School Boards, Accounts Receivable Status Report, and did not participate in discussion or vote on those issues pertaining to the outstanding account of the Scarborough Board of Education. C-2 FINANCE & ADMINISTRATION ADVISORY BOARD #1/92, MARCH 6,1992 SECTION I - ITEMS FOR AUTHORITY CON SID ERA TION 1. 1992 BUDGET Jim Dillane, Director of Finance and Administration, reported on the 1992 Budget. KEY ISSUE This report recommends the 1992 Operating and Capital Budget. Res. #2 Moved by: Frank McKechnie Seconded by: Jim Witty THE BOARD RECOMMENDS TO THE AUTHORITY: THAT the 1992 Operating and Capital Budget be adopted; AND FURTHER THAT the following action be taken: (11 All current projects Included in the 1992 Operating Budget be adopted; . (21 Whereas the Conservation Authorities Act provides that for the carrying out of any project, an Authority shall have the power to determine the portion of total benefit afforded to all municipalities that is afforded to each of them, The Metropolitan Toronto and Region Conservation Authority enacts as follows: (II That all member municipalities be designated as benefiting for all current projects Included In the 1992 Budget; (ill The Authority's share of the cost of the current projects Included in the 1992 Budget shall be raised from all member municipalities as part of the 1992 General Levy; (Iii) The 1992 General Levy for current programs be apportioned to the participating municipalities in the proportion that the equalized assessment of the whole is under the jurisdiction of the Authority, unless otherwise provided In the levy or a project; (Iv I That the 1992 general levy for the operation, maintenance and development of the Conservation Areas, Black Creek Pioneer Village and the Kortrlght Centre for Conservation be in accordance with the funding formula adopted by the Authority at its meeting #8/88 held on December 2, 1988 as follows: Township of Adjala 0.000064 Regional Municipality of Durham 0.028996 The Municipality of Metropolitan Toronto 0.606923 Township of Mono 0.000064 Regional Municipality of Peel 0.146981 Regional Municipality of York 0.180977 (vI the appropriate Authority officials be instructed to advise all municipalities pursuant to the Conservation Authorities Act and to levy the said municipalities the amount set forth in the 1992 Budget for current programs; , . FINANCE & ADMINISTRATION ADVISORY BOARD #1/92, MARCH 6,1992 C-3 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 1. 1992 BUDGET (CONTD.I (31 The 1992 Capital Budget and the 1992 Capital Levy for projects included therein be edopted by the Authority with the following action being taken: (al All member municipalities be notified of the amount of such monies they are required to raise in 1992 on the basis set forth in the 1992 Capital Budget for: (II Conservation Area Development Project, 1992; (ill Greenspace Protection and Acquisition Project, 1992, subject to the attainment of all required approvals; and (iill The Greater Toronto Region Trail System, 1992, subject to the attainment of all required project approvals. (bl The Municipality of Metropolitan Toronto be levied for: (I) Valley and Shoreline Regeneration Project, 1992; (Ii) Project for the Dredging of the Keating Channel, 1992; (III) Lake Ontario Waterfront Regeneration Project, 1992; (Iv) Project for the Acquisition of the Canada Post Property, 1992, subject to the attainment of all required project approvals. (c) The Regional Municipality of Durham be levied for the Lake Ontario Waterfront Regeneration Project, 1992. (d) The Regional Municipality of Peel be levied for: (I) Project for Flood Protection - Dixie/Dundas Damage Centre, 1992; (II) Project for Flood Protection - Uttle Etoblcoke Creek - Tyndall Nursing Home Project, 1992, pending the attainment of all required project approvals, (e) The Regional Municipality of York be levied for the Valley Regeneration Project, 1992, subject to the attainment of all required project approvals. (f) The appropriate Auth,ority officials be instructed to edvise all municipalities pursuant to the Conservation Authorities Act, and to levy the said municipalities the amounts set forth in the 1992 Capital Budget. (4) Except where statutory or regulatory requirements provide otherwise, staff be authorized to enter into agreements with private sector or gov,emment agencies for the undertaking of projects which are of benefit to the Authority and funded by a sponsor. C-4 FINANCE & ADMINISTRATION ADVISORY BOARD #1192, MARCH 6, 1992 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 1. 1992 BUDGET (CONTD.) AMENDMENT Moved by: Brian Harrison Res. #3 Seconded by: Peter Oyler THAT clause (3) (b) (iii) of the main motion read: Lake Ontario Waterfront Regeneration Project, 1992, only within The Municipality of Metropolitan Toronto. ON A RECORDED VOTE YEA NEY Patrick Abtan William Granger Marla Augimerl Frank McKechnie Brian Harrison Richard O'Brien Peter Oyler Jim Witty THE AMENDMENT WAS ..,.........,....,......".........,........... NOT CARRIED The motion was divided and a vote was taken on Clause (3) (b) (iii) of the main motion. ON A RECORDED VOTE YEA NEY Patrick Abtan Maria Augimerl William Granger Brian Harrison Frank McKechnie Peter Oyler Richard O'Brien Jim Witty CLAUSE (3) (bl (iii) WAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . CARRIED A vote was take on clause (31 (bl (Iv). ON A RECORDED VOTE YEA NEY Patrick Abtan Maria Augimeri William Granger Brian Harrison Frank McKechnie Peter Oyler Richard O'Brien Jim Witty CLAUSE (31 (bl (iv) WAS . . . . . . . . . , .'. . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . , . . . . . . CARRIED The vote was take on the approval of the clauses pertaining to the Capital Budget, being Clause 3; 3 (a) (II, (ill and (iill; (bl (II and (III; (c); (d) (i) and Iii), (e) and (f). CLAUSE 3 (e) (II, (ill and (III); (b) (i) and (II); (c); (d) (I) and (iiI, (el and (fl WAS ."........... CARRIED The vote was take on the approval of the Operating Budget, being Clauses (11, (2) and (4) of the main motion. CLAUSES (1), (2) AND (4) WERE ...........................,.,.,........,.... CARRIED THE MAIN MOTION WAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , , . , . , , , . . , , . . , . CARRIED FINANCE & ADMINISTRATION ADVISORY BOARD #1/92, MARCH 6,1992 C-5 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 1. 1992 BUDGET (CONTD.I BACKGROUND Budget Process The Authority's 1992 Budget process began in June of 1991 when Budget guidelines were approved and Authority staff began work on project files for the Ministry of Natural Resources and preliminary estimates for each Division. This work is completed in time for management to review proposed expenditures early in September and for the preliminary estimates to be submitted to the Authority for approval in October. The information requirements of each of the Authority's member municipalities and the Province are different. Budget information used for Authority purposes is reformatted to meet the individual requirements of our funding partners and submitted to them as required under each organization's budget schedule. Meetings take place in the period November through February with member municipalities and the Ministry. The Authority's budget process is further complicated by the fact that Ministry funding is distributed among several different programs under which various rules apply. In effect, the Authority is restricted as to how money in various 'pockets' can be spent. The process of matching grant money in various pockets to municipal levy and other revenue for both capital and current purposes has become increasingly involved. In 1989, the Authority entered into new funding arrangements with the municipal funding partners. These arrangements involve a different calculation of municipal levy distribution on recreation programs and, to ensure equity, requires the application of a special allocation from the Authority's reserves. All of which serves to complicate the Authority's ability to set priorities and allocate expenditures among areas in which the greatest need has been identified. ANALYSIS I draw your attention to the Chief Administrative Officer's Comments section contained in the 1992 Budget document. 2. 1991 AUTHORITY FINANCIAL STATEMENTS Mr. Colin Lipson of Ernst & Young gave a report on the Authority's Financial Statements. KEY ISSUE The 1991 Financial Statements of the Authority are presented for the Finance and Administration Advisory Board's approval and recommendation to the Authority. Res. #4 Moved by: Patrick Abtan Seconded by: Peter Oyler THE BOARD RECOMMENDS TO THE AUTHORITY THAT the title of the Data Processing Equipment Reserve be changed to Major OffIce Equipment Reserve and the use of the reserve be expanded to provide funds for the acquisition of all major office equipment needs; THAT the transfer of funds Into and from reserves during 1991, as outlined In Statement 3 of the Financial Statements, be approved; C-6 FINANCE & ADMINISTRATION ADVISORY BOARD #1/92, MARCH 6, 1992 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 2. 1991 AUTHORITY FINANCIAL STATEMENTS (CONTD.I AND FURTHER, THAT the 1991 audited Financial Statements, as presented, be approved, signed by the Chairman and Secretary-Treasurer of the Authority, and distributed In accordance with Section 39 (31 of the Conservation Authorities Act. CARRIED BACKGROUND The 1991 final Financial Progress Report, which provides greater detail on variances from budgets is presented as a separate item elsewhere on this Agenda. A representative of the Authority's Auditors, Ernst & Young, will be in attendance to present the Auditor's Report. ANALYSIS With the adoption of the Financial Statements, the Authority will be approving the transfer from reserves to surplus a net amount of $2,846,859, as follows: From Reserves: Recreational Development and Restoration $155,184 Lakefill Ouality Control 194,820 Provincial Revenue Sharing Policy 2,766,483 $3.116.487 To Reserves: Food Service Equipment $ 22,656 Major Maintenance 50,000 Vehicle & Equipment 156,078 Major Office Equipment 40.894 $ 269.628 $2.846.859 As at December 31, 1991, the balance in the Recreation Development and Restoration Reserve is $843.483, which amount has resulted from the following transactions: 1991 1990 Revenue: Rent from Lease Agreements: . Wild Water Kingdom 463,052 $ 457,691 . Claireville Equine Operation 9,195 6,930 . Interest 90.960 114.746 563.207 579.367 FINANCE &. ADMINISTRATION ADVISORY BOARD #1/92, MARCH 6,1992 C-7 SECTION I-ITEMS FOR AUTHORITY CONSIDERATION 2. 1991 AUTHORITY FINANCIAL STATEMENTS ICONTD.) Expenditures: . Legal, Survey, etc. 12,121 59,756 . Recreation Formula . Allocation 380,332 152,988 . C.F.G.T. Fund Raising 160,000 160,000 . Kortright Concept Plan 42.495 . Trail Study Tour 17 ,991 . Taxes on lands held for Claireville Golf Course Ltd. 34,540 . Bond Lake Study 8,250 . C.A. Development 104,337 . B.C.P.V. Workshop 61.601 - 718.391 476.020 Increase (decrease) in reserve 1155,1841 . 103,347 Balance, Beginning of Year 998.667 895.320 Balance, End of Year $843.483 $998.667 C.A. Development expenditures of $104,337 were financed from the Recreational Development and Restoration reserve as the Authority was not able to raise levy from all member municipalities during 1991. Specifically, since M.N.R. did not provide technical approval of the 1991-1995 C.A. Development Project the Authority could not appear before the O.M.B. on behalf of Metropolitan Toronto for approval to raise Metro's share of the levy. For many years, the Authority has maintained a Data Processing EQuipment reserve. During 1990, the reserve provided the funds necessary to replace the computerized accounting system. As there is also a need to eventually replace other major office eQuipment items such as telephones, printing press, photocopiers and other computer systems, staff are recommending that the use of the reserve be expanded. Accordingly, the name of the reserve has been changed to Major Office EQuipment to more accurately describe its intended use. During 1991, a sum of $35,000 has been appropriated from surplus to help repleniSh the reserve, subject to approval of the Authority. The transfer of funds to/from the Provincial Revenue Sharing Policy Reserve is explained in Note 2 to the financial statements. It is recommended that the Major Maintenance Reserve be increased by $50,000 by an appropriation from 1991 surplus. It is intended that these funds be used in 1992 to help finance projects which can not be accommodated within the 1992 budget. All other transfers to/from reserves are in accordance with the policies established for the use of reserve funds. The notes to the financial statements provide greater detail to this end. The accumulated deficit of the Authority, which stood at $240,913 as at December 31, 1990 has been reduced to $169.481 as at December 31,1991, as a result of the 1991 surplus of $71,432, net of reserve allocations. . . C-8 FINANCE & ADMINISTRATION ADVISORY BOARD #1/92, MARCH 6,1992 SECTION I - ITEMS FOR AUTHORITY CON SID ERA TION 3. 1991 FINANCIAL PROGRESS REPORT #4 KEY ISSUE This. is the final Financial Progress Report identifying variances from budget for the period ending December 31 st, 1991. Res. #5 Moved by: Patrick Abtan Seconded by: Brian Harrison THE BOARD RECOMMENDS TO THE AUTHORITY THAT the 1991 Financial Progress Report #4, Appendix FA6/92, for the period ending dated December 31st, 1991, be received. CARRIED ANALYSIS Financial Progress Report #4 includes comments from staff with respect to significant variances. The 1991 Authority operations produced an overall surplus of $156,432. As explained in the report on 1991 Authority Financial Statements, recommendations have been made to appropriate $50,000 from the 1991 surplus for the major maintenance reserve and $35,000 for the major office equipment reserve. This leaves a net amount of $71,432 to be applied against the Authority's accumulated deficit which stood at $240,913 as of December 31 st, 1990. The deficit would be reduced to $169,481 as at December 31 st, 1991. The 1991 operating surplus was achieved as a result of conscientious expenditure reductions to match declining revenues and to ensure that the accumulated deficit of the Authority would not increase. In 1992, the flat-line budget provides little or no room to deal with non-recurring, unbudgeted events. The Authority's major maintenance and office equipment reserve may have to play an essential role to ensure that the 1992 budget can be achieved as successfully as the 1991 budget. 4. AMENDMENT TO RULES OF CONDUCT OF THE AUTHORITY - REFERRAL KEY ISSUE Resolution #283 approved at Authority Meeting #9/91, held on January 10th, 1992. provides for referral of a portion of the changes to the Rules of Conduct of the Authority back to the Finance and Administration Advisory Board for consideration. Res..#6 Moved by: Marla Auglmerl Seconded by: William Granger THAT the report on amendment to Rules of Conduct of the Authority - Referral, dated February 26th, 1992, be received. AMENDMENT Moved by: Patrick Abtan Res. #7 Seconded by: Peter Oyler THAT Clause 27 of the Rules of Conduct read "The Finance and Administration Advisory Board shall consider and make recommendations to the executive Committee and to the Authority on all matters relating to Administration and Personnel and to the Authority on budget and financial matters. FINANCE & ADMINISTRATION ADVISORY BOARD #1/92, MARCH 6,1992 C-9 SECTION I- ITEMS FOR AUTHORITY CONSIDERATION 4. AMENDMENT TO RULES OF CONDUCT OF THE AUTHORITY - REFERRAL (CONTD.) ON A RECORDED ~OTE YEA NEY Patrick Abtan Brian Harrison Marla Augimerl William Granger Frank McKechnie Richard O'Brien Peter Oyler Jim Witty THE AMENDMENT WAS ...............................................,... CARRIED THE MAIN MOTION, AS AMENDED, WAS . . . . . . . . . . . . . . . . . . . . . . . . . .". . . . . . , . . . . . . CARRIED BACKGROUND At its meeting held on June 13th, 1991, the Evaluation and Review Committee considered a report on the size, structure and membership of the M.T.R.C.A., dated May, 1991. The report was approved by the Authority at meeting #7/91 held on October 18th, 1991, in accordance with Resolutions #208, 209, and 210. At meeting #9/91 held on January 10th, 1992, the Chief Administrative Officer brought forward a report which implemented the decision of the Authority taken on October 18th, 1991. Implementation required that the Rules of Conduct of the Authority be amended. At meeting #9/91, the Authority adopted an amendment to the recommendation which provided that Section V, paragraph 27 of the Rules of Conduct of the Authority be referred back to the Finance and Administration Advisory Board for consideration. ANALYSIS The purpose of the Evaluation and Review Committee recommendation as approved by the Authority in October of 1991 was to narrow the scope of the Finance and Adminstration Advisory Board to financial issues such as budgets, accounting policies, financial statements, progress reports, etc. In these matters, the Finance and Administration Advisory Board would report directly to the Authority thereby streamlining the flow of information to the Authority and removing the redundancy of discussion at the Executive. The roles and responsibility of the Executive Committee would be to deal with regulatory matters, purchasing, personnel, legal services and property matters. Where authority to approve is not expressly delegated to the Executive, the Executive would make its recommendations as it does now to the Authority. As the Rules of Conduct of the Authority now stand, there is a contradiction. Section V, paragraph 27 reads as it had previously that the Finance and Administration Advisory Board shall consider and make recommendations to the Executive Committee and to the Authority on all matters relating to the Adminstration, Personnel, Budget, and Financial Programs of the Authority. Section V, paragraph 30 has been amended to read -That notwithstanding, paragraphs 27, 28 and 29 any Advisory Board recommendation shall be made to the Executive Committee on matters relating to: (a) the powers delegated to the Executive in paragraph 2; (b) personnel policies; (c) banking and insurance policies; (d) safety and security policies; C-10 FINANCE & ADMINISTRATION ADVISORY BOARD #1/92, MARCH 6,1992 SECTION I-ITEMS FOR AUTHORITY CONSIDERATION 4. AMENDMENT TO RULES OF CONDUCT OF THE AUTHORITY - REFERRAL ICONTD.) Ie) purchasing policies; If) performance appraisals; (g) the regulation governing the procedure of the Authority and these rules. The latter was approved by the Authority and specifically excludes the budget and financial matters having to go through the Executive Committee to the Authority. However, paragraph 27 still reads that these matters must go through the Executive Committee to the full Authority. This contradiction needs to be resolved. In the interim and with respect to Meeting #1 of the Finance and Administration Advisory Board and Meeting #1 of the Executive Committee scheduled March 13th, it is the intent of staff to have all matters which normally have been considered by the Finance and Administration Advisory Board on the Agenda for March 6th. With the concurrence of the Executive Committee, the budget, financial statements, financial progress report will be referred directly to the Authority with no discussion at the Executive Committee. 5. RULES OF CONDUCT - EXCLUSIONARY LANGUAGE KEY ISSUE An Authority resolution requested a review of the by-laws of the Authority to remove eXClusionary language. Res. #8 Moved by: Marla Augimerl Seconded by: William Granger THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the report dated March 5th, 1992, on Removal of Exclusionary Language from the Rules of Conduct of the Authority be received; THAT the references to "his or her" in paragraphs 38,44,45,52,88,91 and 94 be deleted; AND FURTHER THAT, reference to "Chairman" and "Chairmen" be deleted throughout and replaced by "Chair" and "Chairs" respectively. AMENDMENT Moved by: Frank McKechnie Seconded by: Brian Harrison THAT references to "Chairman" and "Chairmen" be replace by Chairperson. THE AMENDMENT WAS ...........,..,................................ NOT CARRIED ON A RECORDED VOTE YEA NEY Marla Auglmerl Patrick Abtan William Granger Brian Harrison Frank McKechnie Richard O'Brien Peter Oyler Jim Witty THE MAIN MOTION WAS . . . . . . . . . . . . . . . . . . . , . , . . . . . , , . , . . . . , , . , . . , . , .. NOT CARRIED (This Item is also under New Business) FINANCE & ADMINISTRATION ADVISORY BOARD #1/92, MARCH 6, 1992 C-11 SECTION I- ITEMS FOR AUTHORITY CONSIDERATION 5. RULES OF CONDUCT - EXCLUSIONARY LANGUAGE ICONTD.) BACKGROUND At Meeting # 1/92, held on February 21 st, 1992, the Authority adopted Resolution #32: That the Executive Committee review the by-laws of the Authority with a view to remove exclusionary language. The Authority does not have bylaws but rather has adopted Rules of Conduct governing its procedures. The Rules of Conduct have been amended on a number of occasions and exclusionary language has for the most part been removed. ANALYSIS Staff has reviewed the Rules of Conduct of the Authority and established that there is no exclusionary language, save and except, the following examples: - There is a reference to "The Secretary-Treasurer, or his or her designates" in paragraphs 38, 44, 45, 52, 88, 91 and 94. - The one remaining area of concern may be the use of the term "Chairman" and "Chairmen". Some organizations have begun using the term "Chairperson" or simply "Chair". In many organizations, the reference to "Chairman" continues to be acceptable. With the exceptions referred to above, the Rules of Conduct of the Authority use terminology which is gender neutral throughout. C-12 FINANCE & ADMINISTRATION ADVISORY BOARD #1/92, MARCH 6, 1992 SECTION II. ITEMS FOR EXECUTIVE COMMITTEE CONSIDERATION 6. PERSONNEL POLICY C-2, RECOGNITION AWARDS - Safety Awards KEY ISSUE Amending the criteria for the qualifying of the Safe Worker Award to include preventing an injury to a visitor as well as an employee. Res. #9 Moved by: Patrick Abtan Seconded by: Brian Harrison THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the criteria for staff qualifying to receive the Safe Worker Award, be expanded to include injuries to visitors. CARRIED BACKGROUND In 1987, the Authority initiated a "Safe Worker Award" as part of our Health and Safety Program to recognize employees who, through safe working practices or a specific action, had prevented injury to themselves or fellow workers. The award consists of a framed citation presented to the recipient lit an appropriate Authority meeting and publicity through our normal communication vehicles, e.g., minutes, newsletters. Employees are nominated in writing, with details of the incident, by a fellow employee. Nominations are forwarded to the Occupational Health and Safety Committee for adjudication. In 1987, three Safe Worker Awards were presented. RATIONAL The purpose for establishing the Safe Worker Award was to provide a means for raising the profile of safety in Authority work places, by recognizing good examples of safe work practices that prevented or lessened injury. In the initial year, considerable interest was shown in this program but, despite periodic internal promotion, no further nominations deemed appropriate, have been forthcoming. Initially, including prevention of injury to visitors was not included as it was deemed to be an inherent component of every employee's job. The Occupational Health and Safety Committee, in reviewing this award program, believes that this was too narrow a view and the award program should be expanded to include visitors. By so doing, it would provide an opportunity to recognize employees when they have indeed preformed well in carrying out their normal duties. 7. NEW PERSONNEL POLICIES - EMPLOYMENT EQUITY AND WORKPLACE HARASSMENT KEY ISSUE To incorporate policies on Employment Equity and Workplace Harassment into the Authority's Personnel Manual. Res. #10 Moved by: Patrick Abtan Seconded by: Brian Harrison THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT appendix FA.22/92, Personnel Policies "Employment Equity" and "Harassment" be approved. CARRIED , . FINANCE & ADMINISTRATION ADVISORY BOARD #1/92, MARCH 6, 1992 C-13 SECTION II - ITEMS FOR EXECUTIVE COMMITTEE CONSIDERATION 7. NEW PERSONNEL POLICIES - EMPLOYMENT EQUITY AND WORKPLACE HARASSMENT ICONTD.) BACKGROUND The. Finance and Administration Advisory Board Meeting #8/91, January 10, 1992, deferred this item for further information on the Workplace Harassment Policy. The Board requested a legal opinion on the wording and process as described in the policy; a legal opinion on employer liability in the event of a complaint and an indication of how the Authority intends to develop employee awareness of the policy. Our lawyers confirmed that the wording of the proposed policy is in conformity with provincial legislation. In the absence of an instant case, the question of financial liability is difficult to address. Our lawyers confirmed that the Ontario Human Rights Commission, through Section 36 or 37 of the Act, can award costs. On the issue of employee awareness, the Authority has taken many steps during the last five years to inform employees about the Ontario Human Rights Code and its implications for the workplace. This has been done through seminars, memorandum, newsletters and discussion. The Authority's Personnel Manual makes various references to "Equality of Employment Opportunity" and to "a workplace free from discrimination and/or harassment". To strengthen our corporate commitment to these important issues, separate policies are proposed. The Employment Equity Policy is proposed at this time as a statement of principle. The policy will be enhanced to incorporate the salient features of the Province's Employment Equity Act when the legislation is passed in the Spring, 1992. SECTION IV - ITEMS FOR THE INFORMATION OF THE BOARD 8. ACCOUNTS RECEIVABLE STATUS REPORT KEY ISSUE Staff report on Accounts Receivable as of February 9, 1992. Res. #11 Moved by: Marla Augimeri Seconded by: Jim Witty THAT the report on Accounts Receivable of the Authority as at February 9, 1992, be received. AMENDMENT Moved by: Peter Oyler Res. ~12 Seconded by: Patrick Abtan THAT staff apply the 2% Policy to both statements and invoices; THAT staff bring forth a report on the application of the 2% policy to small accounts where interest Is less the .100.00; AND FURTHER THAT staff report to the Finance and Administration Advisory Board when alternate arrangements will be applied to the pOlicy. C-14 FINANCE & ADMINISTRATION ADVISORY BOARD #1/92, MARCH 6,1992 SECTION IV - ITEMS FOR THE INFORMATION OF THE BOARD 8. ACCOUNTS RECEIVABLE STATUS REPORT (CONTD.I ON A RECORDED YOTE YEA NEY Maria Augimerl William Granger Brian Harrison Frank McKechnie Richard O'Brien Peter Oyler Jim Witty THE AMENDMENT WAS ..............................,........,........... CARRIED AMENDMENT Moved by: William Granger Res. #13 Seconded by: Patrick Abtan THAT In light of negotiations by staff and the contribution to the Conservation Foundation of Greater Toronto, In the case of the outstanding debt incurred by Trees for Today & Tomorrow Interest be forgiven on this outstanding debt. THE AMENDMENT WAS ................................................... CARRIED THE MAIN MOTION, AS AMENDED, WAS . , . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . CARRIED BACKGROUND At its meeting #3/91, the Board requested that for each of its meetings, staff report on the status of the Authority's receivables. At meeting #16/91 held on January 24th, 1992, the Executive Committee adopted Resolution #298 which reads: WThat the issue of outstanding Board of Education Accounts be referred to the Finance and Administration Advisory Boardw ANALYSIS The attached schedule provides, in summary form, the statu's of receivables including aging and classification. Total receivables have decreased from the previous report (November 15, 19911 from $1,030,971 to $750,801. This decrease is consistent with prior years as a number of projects completed and billed near the end of 1991 have since been collected. Schools, school boards, and governments account for 69.9% of total receivables. The over-90-day category has decreased from $274,131 (November 15, 19911 to $125,183 mainly within the government category. Pursuant to Resolution #298, staff will be writing to the Director of Education of the offending school boards outlining the Authority's continuing problem and requesting that they pay more promptly. The letter will advise of the Authority's policy of charging for overdue accounts. The list below itemizes accounts greater than $1,000 included in the 90-day plus category: FINANCE & ADMINISTRATION ADVISORY BOARD #1/92, MARCH 6,1992 C-15 SECTION IV -ITEMS FOR THE INFORMATION OF THE BOARD 8. ACCOUNTS RECEIVABLE STATUS REPORT ICONTD.) NAME 'TYPE AMOUNT AGE (DAYS) Bolton Nurseries Other 4,829.76 637 Dominik Cuk Other 1,350.00 637-658 North York Board of Education School 8,650.50 138 Scarborough Board of Education Gov't 1,919.80 96 Green Summer Day Camp Other 2,554.50 525 Happy Day Tours Other 11,393.30 405-935 Sketchley Cleaners Other 1,066.50 504-903 Revenue Canada IGST) Gov't 4,268.37 273 Sposa 2000 Other 1,600.00 224 Richmond Hill Centre Ltd. Other 38,629.00 413 Trees for Today & Tomorrow Other 33,181.74 161-238 Bob Koturbash Other 3,703.75 812 Family Trust · Other 2.442.00 ---1.1l 115.589.22 · Subsequently paid Staff was available to discuss these items in greater detail. 9. 1992 MEETING SCHEDULE KEY ISSUE Concern has been expressed by some members of the Board regarding the times and dates of Finance and Administration Advisory Board meetings. Res. #14 Moved by: Frank McKechnie Seconded by: Maria Augimerl THAT the report on 1992 Finance and Administration Advisory Board meetings dated February 26th, be received. AMENDMENT Moved by: Peter Oyler Res. #15 Seconded by: Jim Witty THAT the May 16, 1992 meeting of the Finance and Administration Advisory Board be rescheduled to May 22, 1992, prior to the Authority meeting, If required; AND FURTHER THAT the June 19, 1992 meeting of the Finance and Administration Advisory Board be rescheduled to June 12, 1992, at 8:30 a.m. THE AMENDMENT WAS ................................................... CARRIED THE MAIN MOTION, AS AMENDED, WAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CARRIED It is noted Frank McKechnie will be unable to attend a May 22, 1992 meeting, should it be called; and Peter Oyler will be unable to attend the October 2, 1992 and November 20, 1992 Finance and Administration Advisory Board meetings. C-16 FINANCE & ADMINISTRATION ADVISORY BOARD #1/92, MARCH 6,1992 SECTION IV - ITEMS FOR THE INFORMATION OF THE BOARD 9. 1992 MEETING SCHEDULE BACKGROUND The Chairman of the Finance and Administration Advisory Board has advised that some members of the Board may have difficulty with the approved 1992 Authority Meeting Schedule. Attached is a copy of the Meeting Schedule which was approved by the Authority in November of 1991. Members of the Board are requested to bring their personal calendars with them to the meeting on March 6th so that the Board can review the proposed Finance and Administration Advisory Board Meeting Schedule and make any necessary changes. NEW BUSINESS Res. #16 Moved by: Jim Witty Seconded by: Patrick Abtan THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the report dated March 5th, 1992, on Removal of Exclusionary Language from the Rules of Conduct of the Authority be received; THAT the references to Rhls or herR In paragraphs 38,44,45,52,88,91 and 94 be deleted; THE MOTION WAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. NOT CARRIED CLOSED SESSION Res. #17 Moved by: William Granger Seconded by: Patrick Abtan THAT the Board discuss agenda Item 4, Salary and Wage Schedule 1992/1993 and agenda Item 5, Addition of Vision Care to the Employee Benefit Package, In closed session. CARRIED The Board rose from closed session. FINANCE &. ADMINISTRATION ADVISORY BOARD #1/92, MARCH 6,1992 C-17 CLOSED SESSION (CONTD.) SALARY AND WAGE SCHEDULE 1992/1993 Res. #18 Moved by: Patrick Abtan Seconded by: William Granger THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the recommendation mede to the Board on the Salary and Wage Schedule 1992/1992 be approved. CARRIED VISION CARE Res. #19 Moved by: Patrick Abtan Seconded by: William Granger THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the recommendation made to the Board on this item be approved. CARRIED TERMINATION ON MOTION. the meeting terminated at 11 :30 a.m.. March 6. 1992. Richard O'Brien J. Dillane Chairman Acting Secretary-Treasurer Ibb. ~ Working Together for Tomorrow's Greenspace 'the metropolitan toronto and region conservation authority minutes C-18 JUNE 12, 1992 FINANCE AND ADMINISTRATION ADVISORY BOARD #2/92 The Finance and Administration Advisory Board met in the Humber Room. Head Office. Friday. June 12, 1992. The Chair called the meeting to order at 8:00 a.m. PRESENT ,- Chair Richard O'Brien . Vice Chair Patrick Abtan , Members Maria Augimeri :'il ,,:"} , Brian Harrison Eldred King Frank McKechnie Peter Oyler Jim Witty Chair of the Authority William Granger MINUTES Res. #20 Moved by: Patrick Abtan Seconded by: Frank McKechnie THAT the Minutes of Meeting #1/92 be approved. CARRIED CORRESPONDENCE Letter from Aird Lewis, Director, Trees for Today and Tomorrow. dated June ,9, 1992, re: Outstanding Account (Item 6. Accounts Receivable Status Report, page 28. herewith). C-19 FINANCE & ADMINISTRATION ADVISORY BOARD #2/92, JUNE 12, 1992 SECTION 1- ITEMS FOR AUTHORITY CONSIDERATION 1. ACCOUNTS RECEIVABLE POLICY -Amendments KEY ISSUE Staff report on proposed amendments to the Accounts Receivable Policy, as recommended by the Finance and Administration Board at its meeting # 1/92. Res. #21 Moved by: William Granger Seconded by: Patrick Abtan THE BOARD RECOMMENDS TO THE AUTHORITY THAT the Accounts Receivable Policy as adopted by the Authority at its meeting on July 26, 1991, be emended to: 1. Impose overdue charges on all outstanding Invoices, not just those Issued after July 31, 1991; 2. Direct staff not to pursue the collection of Interest charges where the amounts unpaid are less than $100.00; and 3. Provide that prior to suspension of collection proceedings for amounts (principal and Interest) equal to or In excess of $2,500, staff shall advise the Finance and Administration Advisory Board prior to seeking approval of the executive Committee. CARRIED BACKGROUND At its meeting #5/91. held July 26, 1991, the Authority approved the following Accounts Receivable Policy: , . All invoices issued after July 31, 1991. which remain unpaid for a period of 30 days or more shall be subject to a monthly 2% (26.82% annual rate) interest charge. effective the date of the invoice. 2. The Director. Finance and Administration. may amend the aforementioned interest rate, from time to time, in keeping with market conditions and to ensure the penalty is sufficiently onerous to encourage prompt payment of invoices; and shall advise the Executive Committee of the change. 3. Approval from the Director, Finance and Administration, or his designate is required before credit may be extended beyond a $1000 limit. such requirement may be waived for government and related agencies or charitable, not-for-profit organizations. 4. The Director, Finance and Administration, is authorized to suspend collection proceedings for the purpose of expediency for amounts owing which do not exceed $2.500, including related finance charges. 5. The suspension of collection proceedings for amounts equal to or in excess of $2,500 shall require Executive Committee approval. At its meeting #1/92 held March 6. 1992. the Board recommended the following amendments to the pOlicy: (i) THAT staff apply the 2% Policy to both statements and invoices; (ii) THAT staff bring forth a report on the application of the 2% policy to small accounts where interest is less than $100.00; (iii) AND FURTHER THAT staff report to the Finance and Adminstration Advisory Board when alternate arrangements will be applied to the policy. FINANCE & ADMINISTRATION ADVISORY BOARD #2/92. JUNE 12, 1992 C-20 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 1. ACCOUNTS RECEIVABLE POLICY (CONTD.) -Amendments ANALYSIS The Board introduced amendment (i) to ensure that interest is charged on all overdue invoices. not just those invoices issued after July 31, 1991, as had been intended by the original policy. As of May 24, 1992, there were 51 unpaid invoices (33 customers) issued prior to August 1, 1991. Had interest been charged effective August 1, 1991, these invoices would have generated arrears interest of about $13.200 on a balance of $68.070. (excluding amounts due from Trees for Today and Tomorrow for which arrears interest has been forgiven.) Unfortunately, some of these accounts will be difficult to collect as they are backed by companies which are in receivership, insolvent or have gone into bankruptcy. Staff will continue to pursue every avenue in attempting to collect both interest and principal. Amendment (ii) was introduced to provide guidance to staff on how to actively pursue the collection of small amounts of unpaid interest. There are currently 1 14 invoices issued after July 31, 1991. outstanding in excess of 30 days, accounting for a total of $3.520 in unpaid interest charges, or an average of $30.88 per invoice. Of these 114 invoices. 87 have accrued interest of less than $25 and 11 in excess of $100. Staff are confident that the introduction of interest charges has had a positive impact on the length of time accounts remain outstanding. which is the primary Objective of the policy. To pursue small overdue charges would not be cost effective and therefore the $ 1 00 threshold. as recommended, appears to be a reasonable guideline. Amendment (iii) was introduced to provide staff some flexibility in negotiating ,for unpaid accounts, while keeping the Board informed. It is. therefore, recommended that Paragraph 5 of the original policy be amended to provide that before any write-offs are effected for amounts (principal and interest) greater or equal to $2.500. staff shall advise the Finance and Administration Board prior to seeking Executive Committee approval. C-21 FINANCE & ADMINISTRATION ADVISORY BOARD #2/92, JUNE 12, 1992 SECTION " - ITEMS FOR EXECUTIVE COMMITTEE CONSIDERATION 2. RECREATION FUNDING FORMULA STATUS REPORT KEY ISSUE This report fulfils the Authority's commitment to advise its member municipalities on the status of the funding formula for distribution of the municipal levy for conservation recreation purposes among the member municipalities. Res. #22 Moved by: Brian Harrison Seconded by: 8dred King THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the status report on funding formula, dated June 3, 1992, be received and referred to the Authority for Information; AND FURTHER THAT this report be sent to the Regional Municipalities of Peel, York and Durham and The Municipality of Metropolitan Toronto. AMENDMENT Moved by: Brian Harrison Res. #23 Seconded by: . Eldred King THAT the second paragraph of the Resolution be emended to read: AND FURTHER THAT this report be sent to the Regional Municipalities of Peel, York and Durham and The Municipality of Metropolitan Toronto for information and comment, if any. THE AMENDMENT WAS ...............................;................... CARRIED THE MAIN MOTION, AS AMENDED, WAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .CARRIED BACKGROUND Historv of the Fundina Formula At Meeting #2/88 of the Executive Committee, a special sub-committee was established to review and report on methods of sharing the cost of conservation recreation capital and operating costs among the Authority's member municipalities. The special committee met during 1988. The report of the special committee was presented to the Authority on December 2. 1988, approved by the Authority and referred to the Authority's member municipalities. The report recommended a revised funding arrangement, taking into account discounted equalized assessment ("ability to pay") and visitor origin ("user pay"). Following discussions with member municipalities. there was general agreement and support for the funding formula with one notable exception. There was no agreement as to the time frame within which the new funding arrangement should be implemented. The Regional Municipalities of Peel and York determined that the phase-in period should be five years, while Metropolitan Toronto insisted on no more than three years. The Regional Municipality of Durham accepted the three year phase-in. As a result. the Authority, at Meeting #1/89, held on April 25. 1989, adopted a resolution that the funding arrangements for the Regional Municipalities of Peel, York and Durham would be phased-in over five years and for The Municipality of Metropolitan Toronto. over a three year period. The variance between the three and five year phase-in was to be met by a special allocation from the Authority's Recreational Development and Restoration Reserve. The allocation of the levy for operating. maintenance and development for recreational purposes in 1992 was based on this funding arrangement. 1993 represents the final year of the funding formula phase-in period. , . FINANCE & ADMINISTRATION ADVISORY BOARD #2/92, JUNE 12, 1992 C-22 SECTION " - ITEMS FOR EXECUTIVE COMMITTEE CONSIDERATION 2. RECREATION FUNDING FORMULA STATUS REPORT (CONTD.) Visitor Survev Data In ca.lculating the original funding formula, visitor origin data was limited. Accordingly, it was agreed that each year the Authority would conduct statistically accurate visitor surveys and apply this newly gathered information to evaluate the degree to which the original funding formula was substantially reflected in more recent visitor statistical information. The Technical Appendix was distributed to the Authority and the member municipalities in December, 1988. The visitor origin information for the 1988 report was based on survey data from 1983 and 1986. To collect current information. a visitor survey program was developed by the Authority. Sampling began in January. 1989, and has continued since then. A sample is taken of all visitors to Authority facilities except those who book their visits in advance, i.e.. school groups, tour buses, weddings, etc. Sampling occurs at each location provided that the location is open with staff on duty. Tests were conducted at the Kortright Centre and BI~ck Creek Pioneer Village in December. 1988, to verify the study design. the method of administering the survey and to ensure that the Questionnaires themselves would yield the desired results. Once the five year phase-in period of the funding formula is complete. the most recent three years data will be averaged and the resulting allocation used to calculate the following year's municipal levy allocation. Detailed background information on the visitor survey results is available. STATUS OF THE FUNDING FORMULA The funding formula was created to ensure that there was an equitable sharing of the operating costs of the Authority recreation program amongst its member municipalities. The Authority has traditionally used discounted equalized assessment as a base. Discounted equalized assessment can be said to represent the ability of a municipality to afford services provided or .ability to pay". The Funding Formula Sub-Committee believed that greater attention needed to be paid to a .user pay" philosophy. Residents of a municipality who are users of Authority facilities, should pay in proportion to their use. The Funding Formula Sub-Committee looked at more than twenty variations of this "user pay" philosophy before arriving at what they felt was an equitable solution. The funding formula takes "the ability to pay" philosophy represented by equalized assessment and "user pay" approach represented by the origin of visitors , and applies them in a way that shares the benefit derived from the various Authority facilities and the municipal levy cost associated with that benefit. A chart showing the funding formula as it was applied for the 1992 municipal levy with the projections to 1993 is available. At the end of 1992 the Authority will be in possession of three years of consistent and complete visitor survey data which will enable us to project an average to evaluate the degree to which the 1994 proportionate factor accomplishes what the funding formula sub-committee intended. There will not be time to apply the three year floating average to 1993 because the levy must be in place early in the 1993 fiscal year. Staff continue to monitor the visitor survey data for significant variances from the original funding formula projections. If the most recent discounted equalized assessment data and the 1991 visitor origin information were applied, the funding formula methodology would have the following results which are consistent with the formula approved in 1989. Metropolitan Toronto would be at 60.9% versus 60.7%; Peel at 13.9% versus 16.3%; York at 21.8% versus 19.8% and Durham at 3.3% versus 3.2%. This compares favourably with the predictions of the funding formula as approved by the Authority. C-23 FINANCE & ADMINISTRATION ADVISORY BOARD #2/92, JUNE 12, 1992 SECTION" - ITEMS FOR EXECUTIVE COMMITTEE CONSIDERATION 3. AUDITOR'S 1991 - MEMORANDUM OF RECOMMENDATIONS KEY ISSUE This is a staff report on the Auditor's Memorandum of Recommendations resulting from the 1 991 Financial Audit. Res. #24 Moved by: Frank McKechnie Seconded by: Patrick Abtan THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the Auditor's 1991 Memorandum of Recommendations, dated May 8, 1992, attached as Appendix FA.26/92, be received. CARRIED BACKGROUND Each year the Authority's auditors, Ernst & Young. in the course of their examination of the Authority's Financial Statements, look for opportunities for improvements in certain of the Authority's internal controls. Appendix FA.26/92 is a report from Ernst & Young providing comments on opportunities for improvements to internal controls and stating the response by management of the Authority. ANALYSIS Staff are proceeding to act on the recommendations as contained in the report from Ernst & Young. 4. 1992 FINANCIAL PROGRESS REPORT NO.1 AND APPROVAL OF ACCOUNTS -March and April. 1992 KEY ISSUE The Board is presented with the first of four financial progress reports covering the four months ended May 3, 1992, together with a request for approval of the accounts for March and April, 1992. Res. #25 , Moved by: Jim Witty Seconded by: Eldred King THE BOARD RECOMMENDS TO THE AUTHORITY THAT the Financial Progress Report No.1, dated May 3, 1992, Appendix FA32/92, be received; AND FURTHER THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE, THAT expenditures for the months of March and April, 1992, In the amount of $4,004,100, be approved. CARRIED BACKGROUND As part of the ongoing financial management program, staff provide four financial progress reports detailing year-to-date expenditures and revenues as well as projections for the year, with budget comparisons. Subsection 2(c) of the "Rules for the Conduct of the Authority" delegates to the Executive Committee the power "to approve and authorize payment of all accounts within the approved budget of the Authority in accordance with any monetary or other limits set by the Authority". FINANCE & ADMINISTRATION ADVISORY BOARD #2/92, JUNE 12. 1992 C-24 SECTION " - ITEMS FOR EXECUTIVE COMMITTEE CON SID ERA TION 4. 1992 FINANCIAL PROGRESS REPORT NO.1 AND APPROVAL OF ACCOUNTS (CONTD.) -March and April, 1992 Staff are proposing that approval of the accounts come forward at the same time that a financial progress report is presented. ANALYSIS Within the text of the financial progress report are staff comments on any significant variances which have been identified. In the past, approval of the accounts has gone before the Executive Committee on a monthly basis. Staff are of the opinion that the present expenditures approval. within the context of budget comparison and projections to year-end, will provide more meaningful information for the Members. The year-to-date expenditures presented are the accumulation of the last four months of actual expenses. Since the Executive Committee has already approved expenditures totalling $3,945,100 for the months of January and February, 1992, approval is now sought for $4,004,100 representing expenditures for April and May, 1992. C-25 FINANCE & ADMINISTRATION ADVISORY BOARD #2/92. JUNE 12, 1992 SECTION IV -ITEMS FOR THE INFORMATION OF THE BOARD 5. STATUS OF 1992 BUDGET APPROVAL PROCESS KEY ISSUE This report advises the Board on the status of approvals relating to the Authority's 1992 Capital and Operating Budgets. Res. #26 Moved by: Patrick Abtan Seconded by: Marla Augimerj THAT the report dated May 27th, 1992, on the status of approvals of the 1992 Operating and Capital budgets be received. CARRIED BACKGROUND When the 1992 Capital and Operating Budgets were approved by the Authority on March 27th, 1992, approvals from the Province for various projects and the member municipalities had not been received. ANALYSIS All of the Authority's member municipalities have now approved the Authority's operating levy. A copy of the section of the budget document describing the municipal levy is available upon request. The Province has now released June 1992 grant information which confirms the Authority budget. With respect to capital projects, the following approvals are now in place: LAKE ONTARIO WATERFRONT REGENERATION PROJECT 1992 - 1994 This project was approved by the Authority in May of 1991 and submitted to The Municipality of Metropolitan Toronto, Durham Region and the Province. The Municipality of Metropolitan Toronto and the Region of Durham approved the project in 1991 and approved funding in their 1992 capital budgets. The project received provincial technical approval in April of 1992 and has now received approval from the Ontario Municipal Board. PROJECT FOR VALLEY AND SHORELINE REGENERATION IN THE MUNICIPAliTY OF METROPOLITAN TORONTO 1992 - 1996 This project was approved by the Authority in May of 1991 and submitted to The Municipality of Metropolitan Toronto and the Province. The project was approved by The Municipality of Metropolitan Toronto in 1991 and financing was approved in the 1992 Metropolitan Toronto capital budget. The project received provincial technical and OMB approval in April of 1992. PROJECT FOR ETOBICOKE MOTEL STRIP WATERFRONT PARK In March of 1992, the Ontario Municipal Board brought down its decision with respect to the official plan amendment for the waterfront park. Included in the decision is a recommendation that the Province provide the upfront funding as approved in the Authority's 1992 budget. We are awaiting a final decision from the Board and the Provincial Government response. PROJECT FOR THE DREDGING OF THE KEATING CHANNEL. DON RIVER 1992 The Municipality of Metropolitan Toronto has approved funding for their share of this benefiting municipality project. Provincial funding is available. FINANCE &. ADMINISTRATION ADVISORY BOARD #2/92. JUNE 12, 1992 C-26 SECTION IV - ITEMS FOR THE INFORMATION OF THE BOARD 5. STATUS OF 1992 BUDGET APPROVAL PROCESS (CONTD.I GREENSPACE PROTECTION AND ACQUISITION PROJECT 1992 - 1994 The Regional Municipality of Peel and The Municipality of Metropolitan Toronto have provided funding in their 1992 capital budgets for this project. Discussions are underway with Metropolitan Toronto for approval of the project as'set out in the Authority's budget. A report will be going to Metropolitan Toronto Council shortly. The Regional Municipalities of Durham and York did not approve funding in 1992 for this project. However. it is possible that funding may be provided in future years and both councils appear to be willing to have representation by the Authority with respect to this project. CONSERVATION AREA DEVELOPMENT PROJECT The funding provided for in the 1992 Authority budget includes municipal funding approved in 1991 by the Regions. Ministry of Natural Resources approval is now available and OMB approval to raise levy from The Municipality of Metropolitan Toronto will be requested. . GREATER TORONTO REGION TRAIL SYSTEM 1992 The Municipality of Metropolitan Toronto and the Regional Municipality of Peel have approved funding for this project in their 1992 budgets. The Regional Municipality of York provided partial funding of the project. The Regional Municipality of Durham did not speCifically approve funding for this project but did indicate that they would give consideration to it if submitted separately to Regional Council. The Provincial Ministry of Tourism and Recreation has provided a grant which can be matched with municipal levy. It is anticipated that at least part of the work can be accomplished in 1992. PROJECT FOR THE ACQUISITION OF THE CANADA POST PROPERTY The Regional Municipality of Peel has approved their share of this project. Canada Post has extended the deadline for closing to July 31 st. Provincial funding is in place. The Municipality of Metropolitan Toronto approved funding for this project in its 1992 capital budget. Metro Council will give consideration to approval of the project at a future meeting. 1993 BUDGET PROCESS As we move towards the 1 993 budget, the Authority has been made aware of guidelines from The Municipality of Metropolitan Toronto requesting that the Metro levy be held to the 1992 approved level. We assume that the Ministry of Natural Resources funding will not increase and are hopeful that it will not decrease over the 1992 level. 1993 is the final year of the "phase-in" of the recreation funding formula and therefore the Regional Municipalities of Peel, York and Durham will incur some increases due to the application of the formula. Also, Authority staff have been directed to prepare a three year plan for salary and wage adjustments. It is our intention to submit this plan as part of the 1993 preliminary estimates. The estimates will be submitted to the Finance and Administration Advisory Board at its meeting to be held on October 2, 1992. for submission to the Authority on October 23rd. Authority staff are continuing to refine the process of priority ranking for all programs of the Authority in the 1993 preliminary estimates. As well. Authority staff began a program performance measurement project which will be part of the annual program performance review process. CONCLUSION In summary, the Authority's 1992 Operating and Capital budget is proceeding as it was approved by the Authority on March 27, 1992. . . C-2t FINANCE & ADMINISTRATION ADVISORY BOARD #2/92, JUNE 12. 1992 SECTION IV - ITEMS FOR THE INFORMATION OF THE BOARD 6. ACCOUNTS RECEIVABLE STATUS REPORT KEY ISSUE Staff report on accounts receivable as of May 24, 1992. Res. #27 Moved by: William Granger Seconded by: Peter Oyler THAT the report on accounts receivable of the Authority as of May 24, 1992, be received. CARRIED BACKGROUND At its meeting #3/9', the Board requested that for each of its meetings, staff report on the status of the Authority's receivables. ANALYSIS The schedule below provides, in summary form. the status of receivables including aging and classification. The schedule excludes $3,520 in accumulated interest arrears on overdue invoices issued after July 31, 1991. ACCOUNTS RECEIVABLE AGING. BY CATEGORY (Excluding Municipal Levy and MNR Grant) As of May 24, 1992 31 TO 60 61 TO 90 90 PLUS CURRENT DAYS DAYS DAYS TOTAL % SCHOOLS AND SCHOOL BOARDS , 88,998 31.422 8.039 9,532 237,991 45.2% GOVERNMENT , 2,279 6,998 382 43,368 63,027 12.0% CORPORATE. INDIVIDUAL AND COMMUNITY GROUPS 94,411 4,986 7.471 118.945 225,813 42.9% 295.688 43.406 , 5.892 '71,845 526.83 , 100.0 % OF TOTAL 56.1% 8.2% 3.0% 32.6% 100.0% The over 90-day category has increased from $'25,183 as of February 9, 1992. the date of the last report, to $, 71 ,845, most significantly within the government category. Schools, school boards and government continue to comprise a significant portion of the receivables balance at 57.2 %. FINANCE & ADMINISTRATION ADVISORY BOARD #2/92, JUNE 12. 1992 C-28 SECTION IV - ITEMS FOR THE INFORMATION OF THE BOARD 6. ACCOUNTS RECEIVABLE STATUS REPORT (CONTD.) Total receivables of $526,831, are considerably lower than balances reported on prior reports: $ May 24/92 526.831 February 9/92 750.801 November 1 5/91 1030.971 August 25/91 713.007 June 30/91 720,531 Receivable balances have been significantly influenced by lower levels of economic activity, tightening of credit by the Authority and to some extent by the introduction of finance charges last August. The list below itemizes accounts greater than $ 1,000 included in the 90 day plus category. ARREARS AGE CLIENT NAME TYPE AMOUNT INTEREST (DAYS) Bolton Nurseries Other 4,829.76 NIA 742 Dominik Cuk Other 1.350.00 NIA 742-763 Etobicoke Board of Education School 1,643.14 100.58 105 Metro Separate Board of Education School 4,360.25 453.82 175 Cons. Council of Ontario Other 8.833.16 765.30 1 13- 168 Happy Day Tours Other 11,393.30 N/A 510-1 040 Revenue Canada Gov't 33.046.83 (1) 0.00 98 Sposa 2000 Other 1.600.00 NIA 329 Richmond Hill Centre Ltd. Other 38,629.00 NIA 518 Trees for Today and Tomorrow Other 42,568.07 (2) 0.00 1 14-343 Bob Koturbash Other 3.703.75 NIA 917 I I 151.957.261 1.319.70 I I NIA = Invoices issued prior to policy taking effect on August 1, 1991. 1. Arrears interest paid by Revenue Canada is prescribed by federal law. 2. Interest not charged as recommended by Board. NEW BUSINESS C-29 FINANCE & ADMINISTRATION ADVISORY BOARD #2/92. JUNE 12, 1992 NEW BUSINESS The next meeting of the Finance and Administration Advisory Board will be held on August 21.1992. at 8:30 a.m., prior to the Authority meeting. TERMINATION ON MOTION, the meeting terminated at 8:35 a.m., June 12. 1992. Richard O'Brien W.A. McLean Chairman Secretary-Treasurer Ibb. ~ Working Together for Tomorrow's Greenspace 'the metropolitan toronto and region conservation authority minutes C-30 AUGUST 21,1992, FINANCE AND ADMINISTRATION ADVISORY BOARD #3/92 The Finance and Administration Advisory Board met in the Board Room at Black Creek Pioneer Village, Friday. August 21, 1992. The Chair called the meeting tD order at 8:40 a.m. PRESENT Vice Chair Patrick Abtan Members Maria Augimeri Brian Harrison Eldred King Frank McKechnie Peter Oyler Jim Witty Chair of the Authority William Granger ABSENT Chair Richard O'Brien MINUTES Res. #28 Moved by: Brian Harrison Seconded by: Jim Witty THAT the Minutes of Meeting #2/92 be approved. CARRIED C-31 FINANCE & ADMINISTRATION ADVISORY BOARD #3/92. AUGUST 21. 1992 SECTION II - ITEMS FOR EXECUTIVE COMMITTEE CON SID ERA TION 1. 1992 FINANCIAL PROGRESS REPORT #2 AND APPROVAL OF ACCOUNTS - May, June and July, 1992 KEY ISSUE The Board is presented with the second of four Financial Progress Reports covering the seven months ended July 31. 1992, together with a request for approval of the accounts for May, June and July. Res. #29 Moved by: Peter Oyler Seconded by: William Granger THE BOARD RECOMMENDS TO THE AUTHORITY THAT the Financial Progress Report #2, dated July 26th, 1992, Appendix FA.42/92, be received; AND FURTHER THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT expenditures for the months of May, June, July, 1992, in the emount of $5,615,800, be approved. CARRIED . BACKGROUND As part of the ongoing financial management program. staff provide four financial progress reports detailing year-to-date expenditures and revenues as well as projections for the year with budget comparisons. Also included in this report pursuant to a policy approved by the Authority in June of 1992. is the approval of the accounts for the period indicated. ANALYSIS The unusually wet and cool weather has significantly affected all outdoor recreational activities. Participation in the Authority's outdoor programs at Conservation Areas. particularly swimming. and Black Creek Pioneer Village is down considerably from prior years and the projected revenue is down accordingly. Operating revenue is down by 7%, about $500,000. and operating costs have been reduced by about 2% or $400.000 to compensate. With some additional grant revenue, the projected deficit is $53.000. This is a manageable amount and there are a variety of options available to the Authority to ensure a balanced budget at year-end. With total operating expenditures in excess of $21,000,000, there are a number of opportunities to make the necessary reductions to balance the budget in 1992. 2. WRITE-OFF OF UNPAID AMOUNTS - Happy Day Tours (Toronto) Inc. KEY ISSUE Request for approval to write-off unpaid invoices issued to Happy Day Tours (Toronto) Inc. Res. #30 Moved by: Eldred King Seconded by: Williem Granger THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE the write-off of unpaid Invoices issued to Happy Day Tours (Toronto) Inc. in the amount of $11,393.30 plus $3,056.16 In arrears interest as of July 26, 1992. CARRIED , . FINANCE & ADMINISTRATION ADVISORY BOARD #3/92. AUGUST 21,1992 C-32 SECTION II - ITEMS FOR EXECUTIVE COMMITTEE CON SID ERA TION 2. WRITE-OFF OF UNPAID AMOUNTS - Happy Day Tours (Toronto) Inc. BACt:<GROUND The recently approved Accounts Receivable Policy of the Authority requires that write-offs in excess of $2,500, including arrears interest, be approved by the Executive Committee on the recommendation of the Finance and Administration Advisory Board. ANALYSIS From 1985 to 1991, the Authority maintained a contractual arrangement with a local tour operator, Happy Day Tours (Toronto) Inc. The contract provided for discounted admissions (based on volume) to the Black Creek Pioneer Village as well as shared promotions. During this period, the tour operator brought 44,1 19 visitors to the Village, generating a gross admission revenue of $149,027, in addition to amounts spent on retail items such as food and gifts. Of this amount. $11,393.30 remains unpaid. Staff attempted on numerous occasions to negotiate terms favourable to the tour operator in an effort to continue visitation to the Village. However. the company could not overcome its financial problems and has not been operating since 1991. The account was placed with a collection agency in October 1991. The collection agency found no "unencumbered assets" and as of May 7. 1991, ceased collection proceedings. Arrears interest to July 26. 1992, amounts to $3.056.16. FINANCIAL DETAILS As a provision for doubtful accounts in the amount of $ 11,393.30 was set-up in 1991. there is no impact on the accounts for this year. C-33 FINANCE & ADMINISTRATION ADVISORY BOARD #3/92. AUGUST 21,1992 SECTION IV - ITEMS FOR THE INFORMATION OF THE BOARD 3. ACCOUNTS RECEIVABLE STATUS REPORT KEY ISSUE Staff report on accounts receivable as of July 26, 1992. Res. #31 Moved by: Eldred King Seconded by: Peter Oyler THAT the report on accounts receivable of the Authority as of July 26, 1992, be received. CARRIED AMENDMENT Moved by: Brian Harrison Res. #32 Seconded by: Peter Oyler THAT staff contact the Directors of Education for. Metro area School Boards regarding the late payment of invoices. THE AMENDMENT WAS ................................................... CARRIED THE MAIN MOTION, AS AMENDED, WAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CARRIED BACKGROUND At its meeting #3/91, the Board requested that for each of its meetings, staff report on the status of the Authority's receivables. ANALYSIS The schedule below provides, in summary form, the status of receivables including aging and classification. The schedule excludes $5,346 in accumulated interest arrears on overdue invoices issued after August 1, 1991. the effective date for interest charges and $19.037 in interest arrears for invoices issued prior to August 1. 1991, and still outstanding. ACCOUNTS RECEIVABLE AGING, BY CATEGORY (Excluding Municipal Levy ,and MNR Grant) As of July 26. 1992 31 TO 60 61 TO 90 90 PLUS CURRENT DAYS DAYS DAYS TOTAL SCHOOLS AND . SCHOOL BOARDS 24.680 77.074 10,828 11,214 123,796 33.3% GOVERNMENT 41.609 15.429 3,096 60,134 16.2% CORPORATE, INDIVIDUAL AND COMMUNITY GROUPS 26.874 34,361 11,751 114,910 187,896 50.5% 93,163 1 26.864 25,675 126.124 371.826 100.0% % OF TOTAL 25.1% 34.1% 6.9% 33.9% 100.0% FINANCE & ADMINISTRATION ADVISORY BOARD #3/92, AUGUST 21. 1992 C-34 SECTION IV - ITEMS FOR THE INFORMATION OF THE BOARD 3. ACCOUNTS RECEIVABLE STATUS REPORT (CONTD.) The over 90-day category has decreased from $171,845 as of May 24, 1992. the date of the last report, to $ 126.124, most significantly within the government category. Schools. school boards and government continue to comprise a significant portion of the receivables balance at 49.5%. Total receivables of $371,826. are considerably lower than balances reported on prior reports: Total $ 90-Plus July 26/92 371,826 126.124 May 24/92 526.831 171.845 February 9/92 750.801 125,183 November 15/91 1.030.971 274.131 August 25/91 713,007 177.335 June 30/91 720,531 195.593 Receivable balances have been significantly influenced by lower levels of economic activity, tightening of credit by the Authority and to some extent by the introduction of finance charges last August. The list below itemizes accounts greater than $1,000 included in the 90 day plus category. AR~EARS AGE CLIENT NAME TYPE AMOUNT INTEREST (3) (DAYS) Bolton Nurseries Other 4,829.76 1.295.54 805 Dominik Cuk Other 1.350.00 362.13 805-826 City of York B. of Educ. School 3,488.20 213.51 98 . Etobicoke Board of Education School 1.226.22 127.63 168 Metro Separate Board of Education School 4,360.25 648.31 238 Cons. Council of Ontario (1) Other 9,677 .02 915.49 98-224 Happy Day Tours Other 11,393.30 3.056.16 573-1103 Sposa 2000 Other 1,600.00 429.19 392 Richmond Hill Centre Ltd. Other 38,629.00 10.361.91 581 Trees for Today and Tomorrow Other 40,214.07 (2) 177-406 Bob Koturbash Other 3,703.75 993.50 980 I I 120.471.571 18.403.37 I I 1. Subsequently paid 2. Interest not charged as recommended by Board 3. Interest accrued from August 1. 1991 . C-35 FINANCE & ADMINISTRATION ADVISORY BOARD #3/92, AUGUST 21,1992 SECTION IV - ITEMS FOR THE INFORMATION OF THE BOARD 4. PRESENTATION ON INFORMATION SYSTEMS Jim Dillane, Director of Finance, gave a presentation to the Board on the Information Systems of the Authority with reference to structure, philosophy and activities. TERMINATION . ON MOTION, the meeting terminated at 9:40 a.m., August 21. 1992. . Patrick Abtan W.A. McLean Vice Chair Secretary-Treasurer Ibb. ,~. Working Together for Tomorrow's Greenspace .'the metropolitan toronto and region conservation authority minutes C-36 OCTOBER 2, 1992. FINANCE AND ADMINISTRATION ADVISORY BOARD #4/92 The Finance and Administration Advisory Board met in the Humber Room, Head Office, Friday. October 2. 1992. The 'Chair, Richard O'Brien, called the meeting to order at 10:00 a.m. . PRESENT I Chair Richard O'Brien Vice Chair Patrick Abtan Members Maria Augimeri Brian Harrison Eldred King Frank McKechnie Jim Witty Chair of the Authority William Granger ABSENT Member Peter Oyler MINUTES Res. #33 Moved by: Frank McKechnie Seconded by: Brian Harrison THAT the Mlnut81 of Meeting #3/92 be approved. CARRIED PRESENT A TION Jim Dillane, Director. Finance and Administration. gave a presentation on the 1993 Preliminary Estimates. , . C-37 FINANCE AND ADMINISTRATION ADVISORY BOARD #4/92. OCTOBER 2, 1992 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 1. 1993 PRELIMINARY ESTIMATES KEY ISSUE The Advisory Board is asked to review and recommend the 1993 Preliminary Estimates. Res. #34 Moved by: William Granger Seconded by: Marla Auglmerl THE BOARD RECOMMENDS TO THE AUTHORITY THAT the 1993 Preliminary Operating and Capital Estimates attached es Appendix FA.55/92, be approved; AND FURTHER THAT representatives of the Authority, Including the Chair of the Finance and Administration Advisory B~d, meet with officials of the member municipalities and the Province to present and discuss the Authority's 1993 Preliminary Operating end Capital Estimates prior to submission of the final budget. CARRIED BACKGROUND The Authority's 1993 budget process began in June and involves the establishment of a base level of funding in each Division using the 1992 approved budget less any adjustments for non-recurring items. To this base level of funding, a list of "priority additions" is added. Corporate priorities reflecting the contribution of expenditures to achievement of the Authority's mission and maintaining revenues are determined by Management Committee for submission to the Board. An overview of the Authority's total budgetary requirements is provided under the section entitled Chief Administrative Officer's Comments. A number of issues are identified in this section. The Directors' Comments, highlight the major financial issues which are to be addressed with respect to their particular responsibilities. 2. THREE YEAR SALARY AND WAGE PLAN KEY ISSUE Resolution #60, Authority Meeting #2/92, requires that staff prepare a three year plan for the Salary and Wage Schedule. Res. #35 Moved by: Bdred King Seconded by: Jim Witty THAT the board consider this Item In closed session. CARRIED The board rose from closed session. Resolutions #36 and #37, adopted by the board in closed session will be recommended to the Authority as a confidential item at its Meeting #9/92. to be held October 23. 1992. FINANCE AND ADMINISTRATION ADVISORY BOARD '4/92, OCTOBER 2, 1992 C-38 SECTION JV -ITEMS FOR THE INFORMATION OF THE BOARD 3. ACCOUNTS RECEJVABLE STATUS REPORT KEY ISSUE Staff report on accounts receivable as of September 20, 1992. Res. #38 Moved by: Marla Augimerl Seconded by: Jim Witty THAT the report on accounts recalvable of the Authority as of September 20,1992, be received. BACKGROUND At its meeting #3/91, the Board requested that for each of its meetings, staff report on the status of the Authority's receivables. ANALYSIS The schedule below provides, in summary form. the status of receivables including aging and classification. The schedule excludes $4.233 in accumulated interest arrears on overdue invoices issued after August 1, 1991. the effective date for interest charges and $13,783 in interest arrears for invoices issued prior to August 1, 1991, and still outstanding. ACCOUNTS RECEIVABLE AGING, BY CATEGORY (Excluding Municipal Levy and MNR Grant) As of September 26. 1992 CURRENT 31 TO 60 61 TO 90 90 PLUS TOTAL DAYS DAYS DAYS Schools and School Boards 444 220,664 1,340 41,129 263.577 52.5% Government 43.052 70,845 64 6,290 120,251 24.0% Corporate. Individual and Community Groups 9.221 8,085 6,140 94,510 117.956 23.5% 52,717 299,594 '7,544 141,929 501,784 100.0% % OF TOTAL 10.5% 59.7% 1.5% 28.3% 100.0% The over 90-day category has increased from $126,124 as of July 26, 1992, the date of the last report. to $ 1 41 ,929. most significantly within the school board category. Schools, school boards and government continue to comprise a significant portion of the receivables balance at 76.5% of the total. Total receivables of $501,784, are higher than balances reported on prior reports as shown below: Total 90-Plus $ $ September 20/92 501 ,784 141,929 July 26/92 371,826 126,124 May 24/92 526,831 171,845 February 9/92 750,801 125.183 November 15/91 1,030,971 274.131 August 25/91 713,007 177,335 June 30/91 720,531 195,593 C-39 FINANCE AND ADMINISTRATION ADVISORY BOARD #4/92, OCTOBER 2, 1992 SECTION IV - ITEMS FOR THE INFORMATION OF THE BOARD 3. ACCOUNTS RECEIVABLE STATUS REPORT (CONTD.I The increase in AIR balance can be attributed to a 35 day old invoice in the amount of $153,784.77 issued to the Metro Toronto School Board. The invoice has now been paid. The list below itemizes accounts greater than $1 ,000 included in the 90 day plus category. ARREARS AGE CLIENT NAME TYPE AMOUNT INTEREST · (DAYS) Bolton Nurseries Other 3,000.00 0.00 861 Dominik Cuk Other 1,350.00 396.37 861-882 City of York B. of Educ. , School 3,488.20 363.05 154 Etobicoke Board of Education School 1,765.76 226.80 143-224 Metro Separate Board of Education School 32,155.28 1,245.52 91-119 Stilecroft School 2.747.76 168.18 91 Town of Richmond Hill Gov't 6,290.00 385.00 112 Sposa 2000 Other 1,600.00 469.77 448 Richmond Hill Centre Ltd. Other 38,629.00 11,341.73 637 Trees for Today and Tomorrow Other 40,214.07 233-462 Bob Koturbash Other 3.703.75 1.087.45 1036 I I 134,943.82 I 15,683.87 I I . Interest not accrued prior to August 1, 1991 Comments Bolton Nurseries Sent to collection agency October 17, 1991. Small claims court action commenced September, 1992. Amount written down from $4,829.76 to $3,000. Dominik Cuk Credit for $1.200 issued November 26, 1991, for plant material which did not survive. He now claims all trees did not survive. Site visit to be arranged. City of York Board of Education Requires fOllow-up Etobicoke Board of Education Subsequently paid $539.34 Metro Separate Board of Education Subsequently paid in full FINANCE AND ADMINISTRATION ADVISORY BOARD #4/92, OCTOBER 2,1992 C-40 SECTION IV - ITEMS FOR THE INFORMATION OF THE BOARD 3. ACCOUNTS RECEIVABLE STATUS REPORT (CONTD.) Stilecroft Requires follow-up Town of Richmond Hill Cheque on its way. Sposa 2000 Small claims court action successful. Judgement received July 28, 1992. Trying to collect. Richmond Hill Centre Ltd. Our lawyers are negotiating with the Town of Richmond Hill lawyers to see if we can still draw on their line of credit. Trees for Today and Tomorrow August 1992 - paid invoice for $2,354 with correspondence advising of improving financial outlook. Contacted A\R to advise of address change and that they will try to pay one of the invoices soon. Bob Koturbash Financial difficulties. will try once more before sending to collection agency. TERMINATION ON MOTION, the meeting terminated at 11 :45 a.m., October 2, 1992. Richard O'Brien J. Craia Mather Chair Secretary-Treasurer Ibb. ~ Working Together for Tomorrow's Greenspace 'the metropolitan toronto and region conservation authority minutes C-41 NOVEMBER 20, 1992, FINANCE AND ADMINISTRATION ADVISORY BOARD #5/92 The Finance and Administration Advisory Board met in the Humber Room. Head Office, Friday. November 20, 1992. The Chair, Richard O'Brien, called the meeting to order at 8:40 a.m. PRESENT Chair Richard O'Brien Vice-Chair Patrick Abtan Members Maria Augimeri Brian Harrison Eldred King Frank McKechnie Peter Oyler Chair of the Authority William Granger ABSENT Member Jim Witty MINUTES Res. #39 Moved by: Patrick Abtan Seconded by: Brian Harrison THAT the Minutes of Meeting #4/92 be approved. CARRIED CORRESPONDENCE Letter from J.F. Otterman. Assistant Provincial Auditor, dated November 13, 1992, re: The Metropolitan and Toronto Region Conservation Authority Audit. C-42 FINANCE AND ADMINISTRATION ADVISORY BOARD #5/92, November 20. 1992 SECTION I . ITEMS FOR AUTHORITY CONSIDERATION 1. 1993 PROPOSED FEE SCHEDULE This item was recommended for approval at Conservation and Related Land Management Advisory Board Meeting #3/92. held November 6. 1992. KEY ISSUE Establishment of the 1993 fee structure for the public use of Authority facilities and programs. Res. #40 Moved by: William Granger Seconded by: Eldred King THE BOARD RECOMMENDS TO THE AUTHORITY THAT the 1993 Fee Schedule for edmlssion to and the use of the Authority's facilities and programs, to become effective January 1, 1993, Appendix CR.#4/92, be approved. CARRIED 2. AUTHORITY RESERVES KEY ISSUE Staff report on available reserves. Res. #41 Moved by: Frank McKechnie Seconded by: Peter Oyler THAT the report dated November 18, 1992, on Authority reserves be received; AMENDMENT Moved by: Frank McKechnie Res. #42 Seconded by: Peter Oyler THAT staff delay the tender process for vehicles and equipment slated for replacement In 1993, until the final 1993 Budget status is known. THE AMENDMENT WAS ................................................... CARRIED THE MAIN MOTION, AS AMENDED, WAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CARRIED BACKGROUND At Executive Committee Meeting, #9/92. held on November 13. 1992, the Chief Administrative Officer presented a report entitled "Financial Management Strategy. for information of the members. That report stated that reserves are available to help deal with "unusual budgetary circumstances". The Executive Committee requested further information on the nature and availability of reserves. ANALYSIS The schedule below presents end of year balances (1989 - '992) for each of the Authority's reserves. FINANCE AND ADMINISTRATION ADVISORY BOARD #5/92, NOVEMBER 20, 1992 C-43 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 2. AUTHORITY RESERVES (CONTD.) Reserve 1989 1990 1991 1992. Vehicle & Equipment 657.668 533,200 689,278 620.000 Food Service Equipment 43.846 83,784 106,440 95.000 Major Office Equipment 231,158 11,252 52,146 25,000 Recreational Development and Restoration 895,320 998,667 843,483 785,000 Major Maintenance 204,230 86,973 136.973 137,000 Lakefill Ouality Control 155,720 498.530 303,710 175,000 Sub total 2,187,942 2,212,406 2.132.030 1.837,000 Funds Held Under Provincial Revenue 2.101 4,650,377 1.883,894 900,000 Sharing Policy Totals 2,190,043 6,862.783 4.015.924 2,737,000 Projected end-of-year balances. Each year. when the audited financial statements are presented for approval, staff provides details of all transfers to and from reserves together with a request for approval of same. While staff may request approval for the use of reserves at this time. the more usual case is for expenditures from reserves to be approved through the budget process or by the Executive Committee as the need occurs. Authority reserves have the following characteristics: (1 ) each is created by approval of the Authority; (2) each is designed to meet a specific objective; (3) each operates under a unique set of guidelines, (as approved by the Authority and the Ministry of Natural Resources in some instances); (4) interest is or is not imputed; (5) Authority approval is required for transfers to\from reserves. All but one reserve can be classified as discretionary or as "operating under" rules established by the Authority. The one exception is the "Provincial Revenue Sharing Policy" reserve which is governed by rules established by Ministry of Natural Resources pOlicy. Presented below is a summary of the operating guidelines as they pertain to each reserve. VEHICLE AND EQUIPMENT Because certain of our vehicles and equipment are used for both grant eligible and non-eligible activities and this use is variable over time. MNR grant eligibility rules provide for the establishment of maximum "usage rates. which produce internal charges against the various Authority projects or activities. This mechanism ensures that MNR grant is paid to the Authority only to the extent the equipment is used on grant eligible activities. Usage rates are set by MTO and are updated regularly to keep pace with changing conditions (e.g., changes in costs for maintenance, gasoline. replacements. etc.) These usage or charge-back rates are set such that given "normal" usage each unit should be replaceable from internally generated funds forever. At any point in time. the market value (or trade-in value) plus the cash on hand generated by charge-backs to programs should be sufficient to replace the unit. The original purchase must however be financed from outside the reserve (i.e.. from revenue or levy). FOOD SERVICE EOUIPMENT The purpose of this reserve is to fund the replacement of existing equipment or for the purchase of additional C-44 FINANCE AND ADMINISTRATION ADVISORY BOARD #5/92. November 20, 1992 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 2. AUTHORITY RESERVES (CONTD.) equipment as well as the non-routine repair and maintenance. Equipment also includes cutlery, dishes and other small wares. Prior to 1992, the reserve was replenished by a charge equal to 4% of gross food revenues. For 1992 and the recommended 1993 estimates, the charge is 2%. MAJOR OFFICE EQUIPMENT This reserve was initiated in the early 1980's with an original purpose of accumulating sufficient funds to replace the main accounting computer system. which had been acquired in 1981. Originally. a system involving "user charges" to the various sections was employed. These charges were designed to recapture the out-of-pocket costs of running the computer system and a portion of the original capital cost as represented by depreciation (20%). Sufficient funds had been built up so that the Authority was able to purchase the current accounting/financial information system in 1990. Recently. the "user charge" concept has been dropped and replaced with a flat. annual contribution of $ 1 0.000 plus other ad hoc contributions as approved by the Authority when the financial statements are presented for approval. Recognizing that other major equipment such as telephones, printing presses, photocopiers, etc. would require replacement and the funds required may not reasonably be accommodated in anyone budget year, the scope of the reserve was expanded earlier this year to encompass all major office equipment needs. RECREATIONAL DEVELOPMENT AND RESTORATION Established in 1987, with the opening of the water park at Claireville. this reserve is replenished from lease revenues from special lease agreements. Funds are generally expended on costs of monitoring the agreements and on recreation development. In recent years the Authority did approve expenditures to support the "kick- start" campaign for the Conservation Foundation of Greater Toronto and authorized amounts be used to subsidize the levy as required under the Recreation Funding Formula. In addition. the Authority has directed staff to ensure sufficient funds are available at the end of the water park lease to provide for the restoration of the site. estimated at $2 million, 1987-dollars. Interest is imputed at average rates of return on Authority investments throughout the year. MAJOR MAINTENANCE The reserve was established several years ago to ensure that emergency work could be undertaken and to help defray the burden of a significant major maintenance expenditure in anyone year's budget. The reserve is replenished by ad hoc contributions, as funds are available from time to time. No expenditures are anticipated from the reserve in 1992. LAKEFILL QUALITY CONTROL Because of swings in the economy it has been anticipated that revenues generated from tipping fees under the Lakefill Quality Control Program might not in any given year match the required expenditures to administer the program. As a consequence, this reserve was set-up to ensure the continuation of the program during periods when revenues are low and to ensure the funds are spent for the purpose for which they had been generated. FUNDS HELD UNDER PROVINCIAL REVENUE SHARING POLICY From time to time. as the Authority sells surplus land. it is obligated by provincial pOlicy to keep funds in reserve pending direction from the Provincial Cabinet as to acceptable uses for the funds. Proceeds in excess of $500.000 - ($ 1 00,000 prior to 1982) also require Management Board approval as to disposition. In almost every instance. the Authority has requested and received approval to use the funds for new land acquisitions. In the mid 1980's the proceeds from a parcel sold to the Town of Vaughan for the construction of a recreation centre were approved for the re-development of the Boyd Conservation Area. Interest must be imputed on any unspent balances. CONCLUSION Although Authority reserves may be deployed to meet unusual needs, members must consider the original purpose for which the funds were established and the future implications of depleting a reserve for another purpose. FINANCE AND ADMINISTRATION ADVISORY BOARD #5/92, NOVEMBER 20, 1992 C-45 SECTION" - ITEMS FOR EXECUTIVE COMMITTEE CONSIDERATION 3. WRITE-OFF OF UNPAID AMOUNTS - Richmond Hill Centre Ltd. KEY ISSUE Request for approval to write-off the outstanding balance of Richmond Hill Centre Ltd. Res. #43 Moved by: Bdred King Seconded by: Maria Augimerl THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE the write-off of an unpaid balance of Richmond Hill Centre Ltd. in the amount of $2,704 plus $ 1 3,361 in arrears Interest as of November 1, 1992. CARRIED BACKGROUND The recently approved Accounts Receivable Policy of the Authority requires that write-offs in excess of $2,500, including arrears interest. be approved by the Executive Committee on the recommendation of the Finance and Administration Advisory Board. . ANALYSIS In conjunction with The German Mills Creek Flood Control Project in the Town of Richmond Hill, the Authority entered into a contract with a developer, Richmond Hill Centre Ltd.. In December of 1990. the developer was billed $38,629, which amount still remains outstanding. Richmond Hill Centre Ltd. is currently in bankruptcy proceedings. Ongoing discussions with Richmond Hill officials have recently concluded that existing letters of credit held by the Town cannot be drawn upon by the Authority. However, provincial grant in the amount of $21,246, (55% of $38.629) is available as well as $14,679 in levy on hand from the original project, all of which can be applied to reduce the outstanding balance to $2,704. As of November 1, 1992. interest arrears amount to $ 13,361. While it is unlikely that any amount will be recovered from the developer, staff are taking steps to ensure the Authority's position is protected in the event funds become available during bankruptcy proceedings. SECTION IV - ITEMS FOR THE INFORMATION OF THE BOARD 3. ACCOUNTS RECEIVABLE STATUS REPORT KEY ISSUE Staff report on accounts receivable as of November 1, 1992. Res. #44 Moved by: Peter Oyler Seconded by: William Granger THAT the report on accounts receivable of the Authority, as of November 1, 1992, be received. CARRIED BACKGROUND At its meeting #3/91 the Board requested that for each of its meetings staff report on the status of the Authority's receivables. , . C-46 FINANCE AND ADMINISTRATION ADVISORY BOARD #5/92. November 20, 1992 SECTION IV - ITEMS FOR THE INFORMATION OF THE BOARD 3. ACCOUNTS RECEIVABLE STATUS REPORT (CONTD.) ANALYSIS The schedule below provides, in summary form, the status of receivables including aging and classification. The'schedule excludes $4.137 in accumulated interest arrears on overdue invoices issued after August 1. 1991, the effective date for interest charges and $ 1 5,244 in interest arrears for invoices issued prior to August 1. 1991. and still outstanding. ACCOUNTS RECEIVABLE AGING, BY CATEGORY (Excluding Municipal Levy and MNR Grant) As of November 1. 1992 31 TO 60 61 TO 90 90 PLUS CURRENT . DAYS DAYS DAYS TOTAL SCHOOLS AND SCHOOL BOARDS 303.495 26,704 0 498 330.697 52.4% GOVERNMENT 74,389 30,421 56.265 0 161,075 25.5% CORPORATE, INDIVIDUAL AND COMMUNITY GROUPS 71.035 8,887 1,050 58.124 139.096 22.0% 448,919 66.012 57,315 58,622 630,868 100.0% % OF TOTAL 71.2% 10.5% 9.1% 9.3% 100.0% The over 90-day category has decreased from $141,929 as of September 20, 1992, the date of the last report. to $58,622. Part of this decrease relates to an outstanding amount from Richmond Hill Centre Ltd. Discussions with the Town of Richmond Hill have concluded that the Town cannot draw on existing letters of credit for payment. Provincial grant and municipal levy (from the original German Mills Project) are available to cover all but $2,704 of the debt. Elsewhere on the agenda, staff have'included a report recommending the write-off of this amount plus arrears interest the amount of $13,361. Receivable balances as reported on each of the previous reports to the Board are presented below: Total 90-Plus $ $ November 1/92 630,868 58,622 September 20/92 501,784 141,929 July 26/92 371.826 126,124 May 24/92 526,831 17 1,845 February 9/92 750.801 125.183 November 15/91 1,030,971 274,131 August 25/91 713,007 177,335 June 30/91 720,531 195,593 FINANCE AND ADMINISTRATION ADVISORY BOARD #5/92. NOVEMBER 20, 1992 C-47 SECTION IV - ITEMS FOR THE INFORMATION OF THE BOARD 3. ACCOUNTS RECEIVABLE STATUS REPORT (CONTD.) The increase in AIR balances is not unusual for this time of year. Final billings for special projects. fall plantings and day ~amps were recently issued. The majority of receivables (71.2%) are current. The list below itemizes accounts greater than $1.000 included in the 90 day plus category. ARREARS AGE CLIENT NAME ' TYPE AMOUNT INTEREST (1) (DAYS) Bolton Nurseries Other 3.000.00 0.00 903 Dominik Cuk Other 1,350.00 466.92 903-924 Stilecroft Other 2.747.76 226.50 133 Linda Duhamel Other 2.024.00 166.84 126 Hallelujah Korean Youth Group Other 2,434.70 200.70 126 Sposa 2000 Other 1,600.00 553.39 490 Richmond Hill Centre Ltd. Other 2,704.00 13.360.55 679 Trees for Today and Tomorrow Other 40,214.07 (2) 275-504 56.074.53 14.974.90 1 . Interest not accrued prior to August 1. 1991 2. Interest not charged as approved by Board Comments Bolton Nurseries Sent to collection agency October 17, 1991. Small claims court action commenced September. 1992. Amount written down from $4,829.76 to $3.000. Dominik Cuk Recent site visit by Authority staff 'has concluded that the property owner's claims with respect to the survival rate of plant material are unfounded. Mr. Cuk has been given until November 30, 1992. to pay the invoice plus interest. after which small claims court action will be initiated. Stilecroft Subsequently paid in full. Linda Duhamel Requires follow-up. Hallelujah Korean Requires follow-up. Youth Group Sposa 2000 Small claims court action successful. Judgement received July 28, 1992. Trying to collect. Richmond Hill Balance of $ 2.704 recommended for write-off. Centre Ltd. Trees for Today and August 1992 - paid invoice for $2,354 with correspondence advising of improving Tomorrow financial outlook. Contacted A\R to advise of address change and that they will try to pay one of the invoices soon. C-48 FINANCE AND ADMINISTRATION ADVISORY BOARD #5/92. November 20, 1992 SECTION IV - ITEMS FOR THE INFORMATION OF'THE BOARD 4. 1992 FINANCIAL PROGRESS REPORT NO. 3 KEY ISSUE This is the third of four Financial Progress Reports. Res. #45 Moved by: Frank McKechnie Seconded by: Eldred King THAT the 1992 Financial Progress Report No.3, dated October 4, 1992, be received; CARRIED BACKGROUND As part of the Authority's ongoing Financial Management Program, staff provides regular Financial Progress Reports which describe activities to date as measured against the 1992 approved budget. The Financial Progress Report provides a projection to year-end of expenditure and revenues. This report has also been presented to the Executive Committee for its meeting on Friday. November 13, 1992. ANAL YSIS In the text of the Financial Progress Report are comments by Authority staff explaining significant variances which have been identified. Financial Progress Report No.2 projected a deficit of approximately $53,000. Financial Progress Report No.3 projects a deficit of $19,100. on total operating expenditures of $21.028,000. Staff is monitoring expenditures and revenues closely and expects that appropriate action can be taken in November and December to ensure a balanced budget at year-end. CLOSED SESSION Res. #46 Moved by: William Granger Seconded by: Maria Augimerl THA T the board move to closed session. CARRIED The board rose from closed session. SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 5. WILD WATER KINGDOM It was agreed that Resolution #47 and #48, adopted by the board in closed session will be recommended to the Authority as a confidential item at its Meeting # 10/92, to be held November 27, 1992. FINANCE AND ADMINISTRATION ADVISORY BOARD #5/92. NOVEMBER 20, 1992 C-49 TERMINATION ON MOTION, the meeting terminated at 9:40 a.m., November 20. 1992. Richard O'Brien J. Craio Mather Chair Secretary-Treasurer Ibb. ~ 'Nor-king Together for Tomorrow's Greenspace 'the metropolitan toronto and region conservati~n authority minutes C-50 JANUARY 22. 1993 FINANCE AND ADMINISTRATION ADVISORY BOARD #6/92 The Finance and Administration Advisory Board met in the Board Room, Black Creek Pioneer Village, Friday, January 22, 1993. The Chair. Richard O'Brien. called the meeting to order at 8:30 a,m. PRESENT Chair Richard O'Brien Vice-Chair Patrick Abtan Members Maria Augimeri Eldred King Frank McKechnie Peter Oyler Jim Witty Chair of the Authority William Granger ABSENT Member Brian Harrison MINUTES Res. #49 Moved by: Eldred King Seconded by: Maria Augimeri THAT the Minutes of Meeting #5/92 be approved. CARRIED C-51 FINANCE AND ADMINISTRATION ADVISORY BOARD #6/92, JANUARY 22. 1993 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 1. VEHICLE AND EQUIPMENT REPLACEMENT - 1993 Requirements KEY ISSUE Review of vehicle and equipment requiring replacement in 1993 due to maintenance performance. Res. #50 Moved by: Patrick Abtan Seconded by: Peter Oyler THE BOARD RECOMMENDS TO THE AUTHORITY THAT staff be authorized to proceed with tendering for three vehicles, units #27, #40 and #42; and six equipment items. units A2001. A8049. C2003. H2000, J3011 and S9051. CARRIED BACKGROUND At Authority meeting # 1 0/92, November 27, 1992, Resolution # 192 directed staff to delay the tender process for vehicles and equipment slated for replacement in 1993 until the final 1993 Budget status is known, ANAL YSIS Staff has examined the list of ten vehicles ($235,000) identified for replacement in 1993 Preliminary Estimates and request permission to proceed with the tender process for the three vehicles outlined below: (1 ) Vehicle #27. 1989 Service Van - Central Services Vehicle not required in this section since trades position deleted from 1992 and 1993 budgets. Unit is not suited for use in other sections. - Replacement will provide passenger van for use at Tommy Thompson Park. - Mileage as of December 31, 1992 - 81,775 km. (2) Vehicle #40. 1988 Suburban - Resource Management Section Cost of maintenance has exceeded recoveries for three out of the past four years and additional major repairs will be required If retained until 1994. Mileage as of December 31, 1992 - 102,440 km. (3) Vehicle #42. 1988 GMC 1 Ton - Conservation Areas Section Numerous mechanical break-downs have impacted area operations with excessive down time. Repair costs are highest in fleet for past two years. - Mileage as of December 31,1992 - 77,673 km, The estimated cost for these three units, as per the 1993 Preliminary Budget submissions. is $78,500. Proceeding with replacements at this time is required to meet vehicle production deadline dates for the current model year. which occurs by April. Replacement of the remaining vehicles can be delayed, FINANCE AND ADMINISTRATION ADVISORY BOARD #6/92. JANUARY 22, 1993 C-52 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 1. VEHICLE AND EQUIPMENT REPLACEMENT (CONTD.) - 1993 Requirements Of the 17 pieces of equipment ($ 184,300) identified for replacement in the 1993 Preliminary Estimates, six items that are critical to operations but are presently costly to maintain and unreliable for continued operation in 1993. need replacing. Unit No. Descriotion Est. Cost A2001 1987 Toro with outfront mower (with cab) $ 20,500 A8049 1988 Toro snowblower 4,000 C2003 1990 National triplex mower 10,000 H2000 1987 Toro with outfront mower 18,000 J3011 1983 Mott flail mower 20,500 S9051 1971 single furrow plow 1 .500 Total $ 74.500 The replacement of the balance of the equipment can be deferred until later in 1993 or early 1994, subject to close monitoring of operation and serviceability. FINANCIAL DETAIL Funds to cover the three vehicles and six pieces of equipment listed above are available from the Equipment Reserve and were identified in the 1993 Preliminary Estimates. Additional levy is not required for vehicle and equipment replacement. 2. STATUTORY RESOLUTIONS FOR 37TH ANNUAL MEETING KEY ISSUE The Authority is required to adopt statutory resolutions relating to the appointment of auditors and the borrowing of money. The Authority's Rules of Conduct. Section XV1 1 1, Banking and Borrowing, require that the borrowing of money by the Authority shall be authorized by a resolution of the Authority, The appointment of an auditor is required pursuant to Section 39 of the Conservation Authorities Act, Staff of the Authority is satisfied with the performance and services of the firm Ernst & Young and support their appointment as the Authority's auditors for 1993, Res. #51 Moved by: Frank McKechnie Seconded by: Peter Oyler THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the following resolutions be presented to the 37th Annual Meeting of the Authority: C-53 FINANCE AND ADMINISTRATION ADVISORY BOARD #6/92. JANUARY 22, 1993 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 2. STATUTORY RESOLUTIONS FOR 37TH ANNUAL MEETING (CONTD.) a) ADDointment of Auditors THAT Ernst and Young, Chartered Accountants be appointed as auditors of the Authority for the year 1993; b) Borrowina Resolution - 1993 WHEREAS it is necessary for The Metropolitan Toronto and Region Conservation Authority (hereinafter called "the Authority") to borrow up to the sum of TEN MILLION DOLLARS ($ 1 0.000,000) required for its purposes. until payment to the Authority of any grants and of sums to be paid to the Authority by the participating municipalities designated as such under the Conservation Authorities Act, R.S.O. 1990. Chapter 27; THAT the Authority may borrow from The Royal Bank of Canada or the Authority's member municipalities up to the sum of TEN MILLION DOLLARS (10.000.000) necessary for its purposes. on the promissory note or notes of the Authority until payment to the Authority of any grants and of sums to be paid to the Authority by participating municipalities at such rate of interest as the Minister of Natural Resources approves; THA T the signing officers of the Authority are hereby authorized to execute for and on behalf of the Authority. a promissory note or notes for the sum to be borrowed under paragraph number 1 hereof. and to affix thereto the Corporate Seal of the Authority; THAT the amount borrowed pursuant to this resolution, together with interest thereon at the rate approved by the Minister of Natural Resources. be a charge upon the whole of the monies received or to be received by the Authority by way of grants as and when such monies are received. and of sums received or to be received by the Authority from the participating municipalities as and when such monies are received; THAT the signing officers of the Authority are hereby authorized and directed to apply, in payment of the monies borrowed pursuant to this resolution together with interest thereon at the rate approved by the Minister of Natural Resources. all monies received by the Authority by way of grants or sums received by the Authority from the participating municipalities. CARRIED FINANCE AND ADMINISTRATION ADVISORY BOARD #6/92, JANUARY 22, 1993 C-54 SECTION II - ITEMS FOR EXECUTIVE COMMITTEE CONSIDERATION 3. PERSONNEL POLICY #12 - CLOTHING POLICY - Amendments KEY ISSUE Amendments to the Authority's Clothing Policy to accommodate the need of staff for specific clothing items. provide an appropriate uniform for Provincial Offences Officers, provide a more practical dress uniform, and bring the pOlicy in line with current practice. Res. #52 Moved by: Peter Oyler Seconded by: Jim Witty THE BOARD RECOMMENDS TO THE EXECUTIVE THAT the revised Personnel Policy # 12 - Clothing Policy. be approved. CARRIED BACKGROUND The Authority's Clothing Policy, which covers issue and use of uniforms. was last r~vised In 1989. Since that time suggestions and requests as to clothing needs have been received from staff, and changing staff duties have created a requirement for uniform modification. In addition. several instances where existing practice is at odds with the Policy have been identified. RA TIONALE The complete Personnel Policy #12. which was circulated with the agenda, highlighted the changes In bold type. Rationale for these changes can be summarized as follows: The dress uniform for supervisory field staff now includes a beige shirt with epaulets and a tunic. Previously this uniform included a brown blazer and dress shirt, however, staff found that this uniform was not practical for use in the field nor did it provide the desired image for enforcement activities. The casual uniform has been revised to include a nylon windbreaker rather than a zippered cloth tunic. This is considered more practical for outdoor use and is consistent with current practice. A sweater and coveralls have been added to the winter uniform for enforcement officers. The sweater provides added warmth necessitated by the thinness of the tunic material currently available. Coveralls are currently in use for various types of field work. Over the past five years, a number of Conservation Areas' staff have been designated as Provincial Offences Officers. In order to provide an appropriate uniform for these employees when acting as Provincial Offences Officers. a separate category has been established to allow for supplementary uniform items over and above regular issue. The major additional item Included is a peaked cap. The Clerk. Central Stores. and Receptionist, Kortright Centre for Conservation, not currently included in the pOlicy has been added to Category (5). These positions have been issued uniforms for a number of years but were inadvertently not included in the pOlicy at the time of previous revision. The Administrative Assistant, Retail Sales, and the Theme Coordinator at Kortright Centre for Conservation have been moved from Category (5) to Category (7). This has the effect of making the wearing of a uniform optional for these pOSitions which conforms with actual practice. The current field staff uniforms are not appropriate to the duties being performed by field centre supervisory staff. Consequently a new category has been created for this position to include a dress uniform utilizing a crested blazer. shorts and a golf shirt. . . C-55 FINANCE AND ADMINISTRATION ADVISORY BOARD #6/92. JANUARY 22, 1993 SECTION \I . ITEMS FOR EXECUTIVE COMMITTEE CONSIDERATION 4. AMENDMENTS TO PURCHASING POLICY KEY ISSUE This report recommends amendments to the Authority's Purchasing Policies and provides additional information relating to the procurement of professional and technical consulting services. Res. #53 Moved by: Frank Mckechnie Seconded by: Peter Oyler THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the report on Amendments to Purchasing Policies dated January 13, 1993, be received; THAT the Authority's Policies and Procedures for Purchase of Goods and Services and Disposal of Equipment. Section 1.2 "Purchasing Limits and Authorization", be amended such that part (a) shall read "Purchase of less than $100."; part (b) shall read "Purchases of $ 1 00. up to $500." and Section 1.6 "Purchase Orders" shall read "Purchases of less than $100."; AND FURTHER THAT Section 1.3, Procurement of Professional and Technical Consulting Services. be amended to increase the limit at which Executive Committee approval must be obtained from $2,500. to $5.000. CARRIED BACKGROUND The Authority's Policies and Procedures for Purchase of Goods and Services and Disposal of Equipment dated October, 1991, is reviewed regularly to ensure that staff can proceed with purchasing and disposal as effectively as possible. At recent meetings of the Executive Committee and the Finance and Administration Advisory Board, questions were raised concerning the Authority's policy with respect to the purchase of consulting services. This report addresses those questions. ANAL YSIS Purchasing Limits and Authorization In reviewing the Authority's purchasing policy and in discussions With field staff, it was agreed that the current limit for purchases for which no purChase order is required should be increased from $75. to $ 1 00. This is a minor change but enables field staff to proceed with purchases of minor equipment without incurring needless paperwork. In all cases. these purchases usually involving petty cash, must be recorded and proper receipts maintained and forwarded to supervisory and accounting staff. Incre<;lsing the limit for which. purChase orders are not required also requires a change in Section 1.2 (b) such that "purchases of $75. up to $500. reads .purchases of $100. up to $500." These are purchases for which a purchase order must be completed and signed by an authorized buyer. No other changes are proposed with respect to the section of the document dealing with purchasing limits. Consulting Services Policy The Authority's pOlicy with respect to the procurement of professional and technical consulting services is found under Section 1.3, page 3, of the Authority'S Policies and Procedures Manual. This policy is consistent with the procedures required by the Ministry of Natural Resources and sets a limit of $2,500. for the purchase of consulting services which can be approved by staff of the AuthOrity. Hiring of consultants costing more than $2,500. must be approved by the Executive Committee. FINANCE AND ADMINISTRATION ADVISORY BOARD #6/92, JANUARY 22. 1993 C-56 SECTION II - ITEMS FOR EXECUTIVE COMMITTEE CONSIDERATION 4. AMENDMENTS TO PURCHASING POLICY (CONTD.) The Authority engages professional and technical consultants for a variety of services which staff of the Authority are not e'Quipped to provide, such as geotechnical reports. Although the Authority has in recent years trained staff to undertake some activities previously handled by outside consultants, there will always be work requiring outside expertise which it is not practical for the Authority to provide directly. The limitation of $2,500. has not changed since 1985. Given the current value of technical consulting services. staff is recommending that the limit be increased to $5,000. beyond which Executive Committee approval would be required. All rules regarding selection procedures would still apply. Selection of Technical and Management Consulting Services The criteria for selection of technical and management consulting services is addressed in Section 3, found on pages 11 through 14 of the Authority's Purchasing Policy, These criteria are consistent with the policies of the Authority's member municipalities and the Province of Ontario. Section 3.4 (c), Page 12. lists Consultant Selection Criteria. Three recommendations for selection of consultants at the Executive Committee on December 4. 1992, gave rise to a request for this report. Each had considerations which were unique and warranted exceptions from our standard consultant selection process. (1 ) Etobicoke Creek Hydrology Study - Awarded to Paul Wisner and Associates - $60,000 Soecial Considerations a) Timing - the review and clearance of stormwater management conditions on various developments was delayed pending a watershed perspective on the hydrologic implications of development. It was therefore important to get on with the study as soon as possible. b) Partnership - two-thirds of the funding was coming from affected property owners, therefore one of the consultants who was already working in the area for one of the participants was used. The other consultants working in the area supported the decision to have Paul Wisner and Associates do the study. c) Initiative - Paul Wisner ar:ld Associates were supportive of the Authority's requirement for a watershed hydrology review and did much of the leg work to bring the partners together to support this innovative approach to achieving the objective of sound stormwater management, d) Expertise - a consultant with the right mix of development experience and watershed study experience. which is well represented by Paul Wisner and Associates, was used. (2) Lakefill Guidelines - Awarded to Dames and Moore Canada - $5,000 Soecial Considerations a) Previous Experience and Involvement - Dames and Moore had prepared the original lakefill Quality Control Program Manual and were the most familiar with the issues. C-57 FINANCE AND ADMINISTRATION ADVISORY BOARD #6/92, JANUARY 22, 1993 SECTION II - ITEMS FOR EXECUTIVE COMMITTEE CONSIDERATION 4. AMENDMENTS TO PURCHASING POLICY ICONTD.) b) Cost - this was a relatively small assignment and Dames and Moore had such a distinct advantage, with direct previous experience, it was obvious that the best value to the Authority would be to employ Dames and Moore. Therefore, it would have been a waste of time for other consultants to make submissions for consideration. c) Timing - only three months were available to review the draft MOE guidelines and get submissions back to MOE. A normal consultant selection process would have used at least a third of the time available. (3) Design Guidelines - Colonel Samuel Smith Park - Awarded to Hotson, Bakker Architects - $8,500 Soecial Considerations a) Rotation of Consulting Assignments - Hotson, Bakker is a well respected waterfront planning and design firm which has not worked for The Metropolitan Toronto and Region Conservation Authority (MTRCA) previously with the exception of a very small assignment at Colonel Samuel Smith Park in 1991 and early 1992. One of the objectives of a consultant selection process is to give Qualified firms an opportunity to be considered on public projects, b) Timing - the productions of these guidelines is an important condition of site plan approval by the City of Etobicoke. so we are anxious to have them produced in order to get site plan approval and proceed with development. We had been delayed throughout much of 1992 by the need for an exemption under the Environmental Assessment Act to address minor changes in the original plan. By November, 1992, we became aware that MOE staff was prepared to support the exemption and therefore we wanted to recommend proceeding with the guidelines preparation as soon as possible. c) Cost - the project is a very small consulting assignment and it is important to have regard for the costs incurred by consultants in making submissions. d) Future Work - it is unlikely that MTRCA will require architectural services at Colonel Samuel Smith Park beyond this small project. The buildings will likely be designed for the boat clubs or Metropolitan Toronto. In the event that public buildings are proposed by MTRCA, then we would follow the consultant selection process for the building design. The Authority's policy (p.1 3) provides that "the selection process may be varied at the discretion of the Executive Committee where due to the existence of a prior contract, the uniqueness of the assignment, or other circumstance, it is not in the interests of the Authority to publicly pursue the process,.." When there is an opportunity to extend a consulting assignment to Include future phases of the project, this should be made clear to all proponents at the time the proposals are tendered. The criteria for extension of a contract without calling new proposals should Include: (i) satisfactory performance in relation to the prevIous phase; (ii) cost of future phases must be comparable and competitive with the accepted quotation for earlier phases. FINANCE AND ADMINISTRATION ADVISORY BOARD #6/92, JANUARY 22. 1993 C-58 SECTION IV - ITEMS FOR THE INFORMATION OF THE BOARD 5. ACCOUNTS RECEIVABLE STATUS REPORT KEY ISSUE Staff report on accounts receivable as of December 31, 1992. Res. #54 Moved by: Patrick Abtan Seconded by: Eldred King THAT the report on accounts receivable of the Authority as of December 31, 1992, be received. CARRIED BACKGROUND At its meeting #3/91, the Board requested that for each of its meetings staff report on the status of the Authority'S receivables. ANALYSIS The schedule below provides, in summary form, the status of receivables including aging and classification. The schedule excludes $12,759. in accumulated interest arrears on overdue invoices. ACCOUNTS RECEIVABLE AGING, BY CATEGORY (Excluding Municipal Levy and MNR Grant) As of December 31, 1992 31 TO 60 61 TO 90 90 PLUS CURRENT DAYS DAYS DAYS TOTAL SCHOOLS AND SCHOOL BOARDS 182,181 282,647 15,972 0 480,800 58.9% GOVERNMENT 113,913 64,355 16,260 41,649 236,177 28.9% CORPORA TE, INDIVIDUAL AND COMMUNITY GROUPS 36,957 13,682 1,264 47,729 99,632 12.2% 333,051 360,684 33.496 89.378 816.609 100.0% % OF TOTAL 40.8% 44.2% 4.1 % 10.9 100.0% The over 90-day category has Increased from $58,622 as of November 1. 1992, the date of the last report, to $89.378. The increase IS attributable to an outstanding invOice Issued to the City of Brampton in the amount of $39.046. Payment for this invoice is expected by the end of January, 1993. School boards and other government bodies comprise 87.8% of the receivable balances. C-59 FINANCE AND ADMINISTRATION ADVISORY BOARD #6/92, JANUARY 22, 1993 SECTION IV - ITEMS FOR THE INFORMATION OF THE BOARD 5. ACCOUNTS RECEIVABLE STATUS REPORT (CONTD.) Receivable balances as reported on each of the previous reports to the Board are presented below: Total 90-Plus Date $ $ December 31, 1992 816,609 89,378 November 1. 1992 630,868 58,622 September 20, 1992 501,784 141,929 July 26, 1992 371,826 126,124 May 24, 1992 526,831 171,845 February 9, 1992 750,801 125,1~3 November 15. 1991 1.030,971 274,131 August 25, 1991 713,007 177.335 June 30, 1991 720,531 195,593 The list below itemizes accounts greater than $1,000. included in the 90 day plus category. ARREARS AGE CLIENT NAME TYPE AMOUNT INTEREST (1) (DAYS) Bolton Nurseries Other 3,000.00 0.00 903 Dominik Cuk Other 1.350.00 540.33 963-984 City of Mississauga Gov't 1,950.00 160.74 144 City of Brampton Gov't 39,076.40 3,221.15 137 Sposa 2000 Other 1,600.00 640.39 550 Trees for Today and Tomorrow Other 40,214.07 (2) 275-504 87.190.47 4,562.61 1 . Interest not accrued prior to August 1. 1991. 2. Interest not charged as approved by Board. . . FINANCE AND ADMINISTRATION ADVISORY BOARD #6/92, JANUARY 22, 1993 C-60 SECTION IV - ITEMS FOR THE INFORMATION OF THE BOARD 5. ACCOUNTS RECEIVABLE STATUS REPORT (CONTD.) Comments Bolton Nurseries Sent to collection agency October 17. 1991. Small claims court action commenced September. 1992. Amount written down from $4,829.76 to $3,000. Dominik Cuk Recent site visit by Authority staff has concluded that the property owner's claims with respect to the survival rate of plant material are unfounded. Small claims court action to be initiated. City of Mississauga Subsequently paid in full. City of Brampton Payment expected by the end of January, 1993. Sposa 2000 Small claims court action successful. Judgement received July 28, 1992. Debtor examination scheduled for January 18, 1993. Trees for Today and August 1992 . paid invoice for $2,354 with correspondence advising of improving Tomorrow financial outlook. Contacted Accounts Receivable to advise of address change and that they will try to pay one of the invoices soon. 6. PRELIMINARY 1993 VEHICLE REPLACEMENT PROGRAM KEY ISSUE Staff report on mileage of vehicles identified for replacement in 1993. Res. #55 Moved by: Eldred King Seconded by: Frank McKechnie IT IS RECOMMENDED THAT the staff report for the Preliminary 1993 Vehicle Replacement Program be received. CARRIED BACKGROUND At meeting #5/92, members of the Finance and Administration Advisory Board requested mileage figures for vehicles identified for replacement in 1993. ANALYSIS The Authority staff uses a Quideline for vehicle and equipment replacement of three years for cars, five years for. trucks and ten years for tractors. The guideline for replacement (life expectancies) is based on experience developed over a number of years as well as the rates of depreciation for vehicles and equipment established by the Ministry of Transportation. Prior to vehicle replacement, as per the guideline, the staff Equipment Committee reviews mileage, projected mileage, condition, performance and possible disposal value to determine whether the life of the item within the system should be extended or shortened. C-61 FINANCE AND ADMINISTRATION ADVISORY BOARD #6/92, JANUARY 22. 1993 SECTION IV . ITEMS FOR THE INFORMATION OF THE BOARD 6. PRELIMINARY 1993 VEHICLE REPLACEMENT PROGRAM (CONTD.) Mileage accrual must be examined in context with location and type of usage, and not be the sole determination for replacement. As an example, vehicles at Black Creek Pioneer Village (BCPV) do not accumulate excessive mileage during five years of use, but the type of work performed impacts the physical and mechanical condition of the vehicle necessitating replacement. Conversely, the enforcement section accumulates significant mileage in a short period due to the nature of the program. Unfortunately, dealerships now look at 100.000 kilometres (rather than miles) in determining trade-in and resale value of a used vehicle. The mileage for vehicles identified for replacement in 1993, as well as projected mileage for normal replacement as per the guidelines. and mileage projected to 1994 for deferred replacement is outlined in the following chart: Vehicle Make Location Km. as of Proj'd Mileage Proj'd Mileage No. Dec. 1992 to June 1993 to June 1994 2 '89 Ford Pickup Eng. & Dev. 107,805 126,210 157.770 18 '88 Chev Stake Waterfront 53,865 60,980 73,172 20 '88 GMC Stake Heart Lake 80,708 91,370 109,650 24 '90 Ford Sedan Enforcement 78.452 97,390 129,850 27 '89 Chev Van Central Services 80.161 93,850 117,300 29 '87 Nissan Pickup Waterfront 106,325 117,775 137,400 31 '88 Ford Pickup BCPV 58,177 65,860 79,040 34 '88 Chev Stake Albion Hills 56,160 63,580 76,300 40 'Chev Suburban Resource Mangn't. 101,056 114,400 137,280 42' '88 Chev Stake Petticoat Creek 76,584 86,700 104,040 7. ANNUAL REPORT ON FREEDOM OF INFORMATION REQUESTS KEY ISSUE Staff report annually on activity related to the Municipal Freedom of Information and Protection of Privacy legislation. Res. #56 Moved by: Frank McKechnie Seconded by: Peter Oyler IT IS RECOMMENDED THAT the report on 1992 activity related to the Municipal Freedom of Information and Protection of Privacy legislation, dated January 13. 1993. be received. CARRIED SECTION IV - ITEMS FOR THE INFORMATION OF THE BOARD \ FINANCE AND ADMINISTRATION ADVISORY BOARD #6/92, JANUARY 22, 1993 C-62 7. ANNUAL REPORT ON FREEDOM OF INFORMATION REQUESTS (CONTD.) BACKGROUND The Municipal Freedom of Information and Protection of Privacy legislation came into effect on January 1, 1991. In 1991. the Authority received nine Freedom of Information requests. one of which remained outstanding as of January 1, 1992. ANALYSIS In 1992. the Authority received only one request for information under the Municipal Freedom of Information and Protection of Privacy Act. This request (#92-01) was from a consultant acting for a developer and concerned the Authority's records on approved fill permit applications. The applicant was advised that the information was available and that it would cost approximately $415. to provide written copies of all of the material requested. After some negotiation, the applicant agreed to attend at the Authority's offices to review the information. The applicant eventually requested copies of three Executive Committee reports which were subsequently provided. The Authority received a request late in 1991 for release of information related to mailing lists and picnic permit applications. Staff took the position that this information had commercial value to the Authority and that the applicant's request would prejudice the economic Interest of the Authority pursuant to Sections 1 1 (cl and (d) of the Municipal Freedom of Information legislation. Also, the Authority argued that Section 32 of the legislation which protects personal information applied. Negotiations with the applicant failed to resolve the matter and the applicant appealed to the Information and Privacy Commission. An Appeals Officer was appointed and attempted to mediate the request. Authority staff cooperated with the Commission in substantiating the value of the information and the position taken by the Authority. The Appeals Officer was unsuccessful in arriving at a resolution of the matter to the satisfaction of the Authority and the applicant and filed a "Notice of Inquiry". Pursuant to the legislation. the applicant and the institution each filed a response to the Appeals Officer's report effectively setting out their respective positions with respect to the request for information. On December 2, 1992. the Information and Privacy Commissioner of Ontario issued Notice of Order M-67, Appeal #M-910446 which supported the position of the Authority in the matter and upheld the decision of the Authority not to release the information. In summary, the Authority has dealt with very few formal Freedom of Information requests. There have been many inquiries regarding information and a number of these inquiries have made reference to Freedom of Information legislation. Staff of the Authority have been able to respond to the requests by identifying that the information is publicly available and that it is not necessary to make an Freedom of Information request to receive it. As a result, most of these requests for information are satisfied without the need to entertain Freedom of Information requests. TERMINATION ON MOTION, the meeting terminated at 9: 1 0 a.m., January 22, 1993. Richard O'Brien J. CraiQ Mather Chair Secretary-Treasurer Ibb.