BOARD OF DIRECTORS MEETING May 18, 2017 4:30 p.m. 39 Auriga Drive, OCH Board Room
AGENDA
4:30 p.m. 1. Welcome and Call to Order
4:35 p.m. 2. Conflict of Interest Declarations
4:40 p.m. 3. Approval of Agenda 4:40 p.m. 4. Approval of the Minutes – March 23, 2017 005 4:45 p.m. 5. Tenant Advisory Group Verbal Report (Carole Ladouceur)
DELEGATIONS 4:50 p.m. 6. Presentation to Russell Fire Heroes (Presentation: Councillor Fleury and Stéphane Giguère)
FOR APPROVAL 5:00 p.m. 7. OCHC-038/17 2016 Audited Financial Statements 013
FOR INFORMATION AND DISCUSSION 5:20 p.m. 8. OCHC-039/17 Financial Accountability and Performance Monitoring - March 31, 2017 064 5:40 p.m. 9. OCHC-040/17 OCH Connect Intranet Update and Demonstration 071
BULK CONSENT 10. OCHC-041/17 3225 Uplands Project 074 11. OCHC-042/17 Property Sales Process 087 OCHC-043/17 Carlington Community Health Hub Project Update 12. 092 13. OCHC-044/17 Capital Spend Update 106
14. OCHC-045/17 Capital Works Program - Update 110 15. OCHC-046/17 Declaration on Statutory Remittances 115
OCHC-047/17 CEO Operational Report 118 16. 17. Tenant Advisory Group (TAG) - November 15, 2016 minutes 123 BOARD COMMUNICATION DOCUMENTS
18. Thank You Letter from MP Catherine McKenna on OCH Response to Let's Talk Housing Consultation 127
BOARD OF DIRECTORS MEETING May 18, 2017 4:30 p.m. 39 Auriga Drive, OCH Board Room
6:00 p.m. 19. Chair's Verbal Update
6:05 p.m. 20. CEO's Report
6:10 p.m. 21. Inquiries from the Board
6:15 p.m. Motion to Adjourn Next meeting – June 22, 2017 at 4:30 p.m. 39 Auriga Drive, OCH Head Office
RESPONSES TO PREVIOUS BOARD INQUIRIES Date Item Requester Status
RÉUNION DU CONSEIL D’ADMINISTRATION Le 18 mai 2017, à 16 h 30 39, promenade Auriga, salle de conférence de LCO
ORDRE DU JOUR
16 h 30 1. Mot de bienvenue et ouverture de la séance
16 h 35 2. Déclarations de conflits d’intérêts
16 h 40 3. Approbation de l’ordre du jour
16 h 40 4. Approbation du procès-verbal de la réunion du 23 mars 2017 005
16 h 45 5. Rapport verbal du Groupe consultatif des locataires (Carole Ladouceur)
DÉLÉGATIONS 16 h 50 6. Présentation aux héros des Services d’incendie de Russell (par Conseiller Fleury et Stéphane Giguère)
POUR APPROBATION 17 h 7. OCHC-038/17 États financiers audités de 2016 013
POUR INFORMATION ET DISCUSSION 17 h 20 8. OCHC -039/17 Responsabilité financière et suivi du rendement – 31 mars 2017 064 17 h 40 9. OCHC -040/17 Mise à jour sur l’intranet OCH Connect et démonstration 071
APPROBATION EN BLOC 10. OCHC -041/17 Projet au 3225, promenade Uplands 074 11. OCHC -042/17 Processus pour la vente de propriétés 087 12. OCHC -043/17 Mise à jour sur le projet du Centre de la santé communautaire Carlington 092 13. OCHC -044/17 Mise à jour sur les dépenses en capital 106
OCHC -045/17 Mise à jour sur le programme d’immobilisations 110 14. 15. OCHC -046/17 Déclaration relative aux remises législatives 115 15. OCHC -047/17 Rapport du PDG sur les activités 118
16. Procès-verbal de la réunion du 15 novembre 2016 du Groupe 123 consultatif des locataires DOCUMENTS DE COMMUNICATION DU CONSEIL D’ADMINISTRATION
Lettre de remerciement de la députée Catherine McKenna concernant 17. l’intervention de LCO à la suite de la consultation « Parlons logement 127
RÉUNION DU CONSEIL D’ADMINISTRATION Le 18 mai 2017, à 16 h 30 39, promenade Auriga, salle de conférence de LCO
18 h 18. Le point du président
18 h 05 19. Rapport du PDG
18 h 10 20. Questions du conseil
18 h 15 21. Motion d’ajournement Prochaine réunion : Le 22 juin 2017, à 16 h 30, au 39, promenade Auriga, siège
social de LCO
RÉPONSES AUX QUESTIONS ANTÉRIEURES DU CONSEIL Date Question Auteur Suivi
OTTAWA COMMUNITY HOUSING CORPORATION BOARD OF DIRECTORS MEETING PUBLIC MINUTES
39 Auriga Drive, Date: Thursday, March 23, 2017 OCH Board Room Meeting Start Time: 4:30 p.m.
Directors: Councillor Mathieu Fleury, Chair; Ms. Cathy Jordan, Corporate Secretary; Ms. Monika Ferenczy, Director; Councillor Catherine McKenney, Director; Ms. Carole Ladouceur, Director (Tenant); Ms. Ferenaz Raheem, Director; Ms. Nicole St- Louis, Director; Mr. Dan Doré, Director; Mr. Claude Lloyd, Director
Regrets: Councillor Jody Mitic, Director; Mr. Ben Sorensen, Director; Councillor Mark Taylor, Director; Mayor Jim Watson
OCH Staff: Mr. Stéphane Giguère, Chief Executive Officer; Mr. Guy Arseneau, VP, Tenant Services; Ms. Shaun Simms, Director of Operations, Bank Office; Ms. Christiane Hallé, Director of Operations, Murray Office; Ms. Denise Dupuy, Director of Operations, Chapel Office; Ms. Melissa Salvatore, Director, Human Resources; Mr. Alain Cadieux, Director, Support Services; Mr. Cliff Youdale, VP, Asset Management; Mr. Barron Meyerhoffer, Director, Planning and Engineering; Ms. Diana Carr, Director, Project Implementation; Mr. Jean Dostaler, Director, Asset Management Operations; Mr. Rob MacNeil, Senior Manager, Realty Initiatives; Mr. Rob Clark, Building Systems Coordinator; Mr. Michael Ranger, Project Manager; Mr. Brian Gilligan, VP, Community Development; Mr. Nathan Hoedeman, Director, Community Safety Services; Ms. Patricia Tessier, VP, Organizational Effectiveness; Mr. Bob Huard, Director, Information Management and Information Technology (IM/IT); Mr. Jonathan Ede, Manager, IM/IT; Mr. Brent Schwieg, Director, Performance & Quality; Ms. Kelly Hastings, Policy & Program Officer; Ms. Melany Chretien, Manager, Corporate Communications; Ms. Niki Kerimova, Media Relations and Events Coordinator; Mr. Derek Chaume, Business Analyst; Ms. Nathalie Fauvel, VP, Finance, and Chief Financial Officer; Mr. Ven Giannantonio, Director, Finance; Ms. Wendy McColgan, Manager, Executive Operations; Mr. Marc Petit, Executive Assistant; Ms. Annette Jensen, Executive Assistant
Guests:
Tenants: 0
1. Welcome and Call to Order
Councillor Fleury welcomed Ms. Ferenaz Raheem, new Board member and member of the Client Services Committee. He called the meeting to order.
2. Conflict of Interest Declarations
5
Councillor Fleury discussed guidelines for conflicts of interest and there were no conflict of interest declarations based on the agenda items being presented.
DELEGATIONS
3. Ishbel Solvason, The Social Housing Registry of Ottawa (The Registry)
Ms. Solvason provided an overview of the services that the Registry provides to all applicants for subsidized housing within the City of Ottawa. She discussed the priority categories that are assigned to each application, and the continuing need for affordable housing in Ottawa.
Councillor Fleury thanked Ms. Solvason for her presentation.
Councillor McKenney joined the meeting at 4:45 p.m.
4. Case Study on Window and Balcony Door Repairs at 721 Chapel Crescent
Mr. Ranger discussed a capital works project for windows and balcony doors that was completed at 721 Chapel Street. Existing windows and doors were repaired rather than replaced, and air leakage was reduced by 50 to 70% in all cases. The project also optimized innovative 3D printing, reduced and eliminated waste being sent to landfill, and proved financially beneficial.
Councillor Fleury stated that he was pleased to hear about this innovative approach.
5. Approval of Agenda
Moved by: Ms. St-Louis Seconded by: Ms. Ladouceur
That the agenda be approved with the following amendment:
That Item 21, Declaration on Statutory Remittances, be removed from the bulk consent agenda and presented for discussion.
Carried
6. Tenant Advisory Group (TAG) Verbal Report (Carole Ladouceur)
Carole Ladouceur presented the following report:
The Tenant Advisory Group met on March 21. While reviewing the Board package, members inquired about methods that are used by the Asset Management department to assess and prioritize capital repair projects. An Asset Management representative will be asked to attend the next TAG meeting in May.
Brian Gilligan, the Vice President of Community Development, gave an update on the
6 work of the Community Development Department and Community Safety Services. The new one telephone number was discussed. Several TAG members complimented the initiative, though there will be a transition period for all tenants to become comfortable with the change.
Gail Henri from Corporate Communications gave an update on the OC Transpo new low- income bus pass called EquiPass. There was a suggestion that OC Transpo staff make themselves available at tenant events to promote this initiative. The next quarterly newsletter will feature a story on this.
Ms. Henri also spoke on a follow-up article about how OCH responded to the 2015 Tenant Satisfaction Survey results and implemented several key changes. A TAG member discussed the impact of the closure of the Ramsey Office on tenants in the West End of Ottawa.
The 2017 Tenant Retreat will be held on Saturday, April 22 at Clementine Towers (1455 Clementine) in the lounge.
The meeting ended with a discussion on how to get more tenants involved in TAG and District Based Committees. There were a range of opinions on this. Reducing the level of formality was a suggestion from many participants.
The next Tenant Advisory Group meeting will be held on Tuesday May 16, 2017.
FOR APPROVAL
7. Approval of the Minutes of the January 19, 2017 Board Meeting
Moved by: Mr. Lloyd Seconded by: Councillor Fleury
That the minutes of the January 19, 2017 Board of Directors meeting be approved.
Carried
Business Arising from the Minutes
There was no business arising from the minutes.
8. OCHC-018/17 – Terms of Reference – Corporate Performance and Client Services Committees
Moved by: Ms. Jordan Seconded by: Ms. Ferenczy
That the Board of Directors approve the Terms of Reference for the Client Services Committee and the Corporate Performance Committee, as identified in this report.
Carried
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9. OCHC-019/17 – OCH Portfolio Renewal Land Acquisition and Development Guiding Principles
Board Directive to Staff: The Board agreed with Ms. Raheem’s suggested edits to the Guiding Principles:
- To expand the first guiding principle to also consider access to accessible transportation and employment opportunities; and - That the third guiding principle also consider mixed use, not solely mixed income communities
Moved by: Mr. Lloyd Seconded by: Ms. St-Louis
That the Board of Directors approve the Portfolio Renewal Land Acquisition and Development Guiding Principles, as amended.
Carried, as amended
10. OCHC-020/17 – Use of Digital Networks and Devices Policy
Mr. Huard discussed the increasing prominence of technology in daily work which led OCH to modernize and develop this updated policy. Monitoring tools are being enhanced to ensure that security and privacy are not compromised, and the Board was assured that upcoming legislative reporting requirements on breaches will be followed.
Ms. Jordan stated that she appreciated the reporting responsibilities that are clearly defined in the policy.
Moved by: Ms. Jordan Seconded by: Mr. Doré
That the Board of Directors approve the new Use of Digital Networks and Devices Policy.
Carried
11. OCHC-021/17 – Integrity Policy
Mr. Giguère thanked the City of Ottawa for their support and expertise in relation to this initiative. Ms. St-Louis inquired about reporting on fraud claims. Mr. Arseneau mentioned that information regarding claims will be included in performance reporting to the Board. Ms. St-Louis confirmed that the Board will be seeking information analysis, such as any trends that may exist, as part of the reporting on fraud claims.
There was discussion on performance and compliance-related reporting. Ms. St-Louis agreed that streamlining reporting, potentially in an annual and aggregated report in the
8 future, may be beneficial. Mr. Giguère added that this would align the reporting and add to efficiencies.
Board Directive to Staff: The Board directed staff to discuss further the alignment of performance reporting at the Corporate Performance Committee.
Moved by: Ms. Jordan Seconded by: Mr. Lloyd
That the Board of Directors approve the Integrity Policy as presented in this report.
Carried
FOR INFORMATION AND DISCUSSION
12. OCHC-022/17 – Financial Accountability and Performance Monitoring – December 31, 2016
Mr. Giannantonio presented key highlights of the 2016 financial reporting.
Ms. St-Louis inquired how the OCH capital spend compared with other housing providers. Mr. Giguère provided some comparisons, and Mr. Youdale discussed capital repair costs that are required to maintain the housing stock.
That this report be received by the Board of Directors for information.
Received
13. Board Decision-Making, Avoiding Group Think Session - Verbal Update
Ms. Ferenczy discussed the scenarios and situations that were presented at the seminar that highlight examples of group think experiences, and the resulting decisions made in that mindset.
A request was made that staff revise the summary document sent to Board members, to add italicized sections to the quotes from the seminar.
Councillor Fleury thanked Ms. Ferenczy for her initiative in attending the seminar, and for her report to the Board.
That this verbal update be received by the Board of Directors.
Received
14. OCH Connect - Verbal Update
Ms. Tessier provided an update on the intranet being developed that will promote communications with staff and provide single-entry access to OCH internal systems. A
9 Board and Committee web portal is also being developed that will provide access to Board and Committee reports, Q-BIT corporate measures and related material. There will be a demonstration available in April.
In order to provide Board material to the directors as expediently as possible, staff will provide Board reports within five business days of the Committee meetings. The reports will be accessible via the new web portal, or Dropbox until the portal is available. The first of these reports will be made available on April 21 (due to the statutory holidays).
That this verbal update be received by the Board of Directors.
Received
15. OCHC-023/17 – Corporate Communications Year-End Report
Councillor Fleury stated that he looked forward to watching OCH build its followers on social media, continue expanding the OCH image, and promoting the OCH website with our tenants.
That this presentation be received for information by the Board of Directors.
Received
16. OCHC-024/17 – Prioritization Tool
Mr. Giguère stated that the Prioritization Tool focuses on maintaining the core objectives of OCH, and ensuring the balanced delivery of all selected initiatives.
Ms. Jordan confirmed that the Corporate Performance Committee reviewed this tool and was very supportive of this initiative.
That this presentation be received for information by the Board of Directors.
Received
17. OCHC-025/17 – Governance and Policy Development
Received
18. OCHC-029/17 - Declaration on Statutory Remittances
Ms. Fauvel discussed new procedures that have been set in place to ensure that payroll- related remittances are submitted to Canada Revenue Agency within three days of the processing date of the payroll, and that the payable balances have been cleared.
The circumstances that led to an oversight of the last payment of 2016 (submitted six days late) were discussed. The Board members were satisfied that the new measures that have been set in place will mitigate any future risk.
10 Mr. Doré confirmed that staff were very transparent with the Treasurer when this error took place, and that the new procedures will ensure payments are made and confirmed in advance of future deadlines.
OCH has filed an application with Canada Revenue Agency to have the ensuing penalty waived.
That this presentation be received by the Board of Directors for discussion.
Received
BULK CONSENT
Receipt of Bulk Consent Reports
Councillor Fleury called for a motion to receive the following reports:
OCHC-026/17 Tenant Services Performance Report OCHC-027/17 Capital Investment Update – December 31, 2016 OCHC-028/17 Governance Effectiveness Action Plan OCHC-030/17 CEO Operational Report
That all reports identified on the bulk consent agenda be received as presented within the reports.
Received
BOARD COMMUNICATION DOCUMENTS Letter from MPP Glenn Thibeault, Ontario Minister of Energy Canadian Radio-television and Telecommunications Commission (CRTC) Thank You Letter to National Capital Freenet National Housing Collaborative – Open Letter to Prime Minister Trudeau OCH Ontario Budget Consultation Submission Thank you letter from MPP Chris Ballard, Minister of Housing, on OCH National Housing Strategy submission
RESPONSE TO PREVIOUS BOARD INQUIRIES Memorandum regarding Board Policy
23. Chair’s Update
Councillor Fleury discussed the federal budget and stated that the City is seeking a $250 million contribution from the federal government for housing in 2017.
He noted the new one telephone number for improved service to tenants has received very positive feedback, and provides highly-improved response rates to calls made to OCH offices.
11 Board members are welcome to contact staff both informally and formally to request further information on Board reports. When sending these inquiries to the Chair and staff, it is helpful to indicate if staff are permitted to forward the inquiry and the response to all Board members for their information.
Received
24. CEO’s Report
Feedback from Board members is always appreciated, and Mr. Giguère thanked Board members for the inquiries he received and responded to.
OCH organized a meeting with the real estate development sector, and it was an excellent opportunity to present OCH’s portfolio renewal initiatives and potential future opportunities.
Mr. Giguère and staff have met with the Ward Councillor and community members to discuss the expansion plans for the Ashgrove community on Uplands Drive. A rendering of the project was reviewed by the Board members.
The Mayor and Councillor Fleury have joined Mr. Giguère at various volunteer events in OCH communities including tenant ambassador events such as Cuts for Kids, a visit with the Redblacks and the Grey Cup, as well as a volunteer program painting event with University of Ottawa students.
Received
25. Inquiries from the Board
There were no inquiries from the Board at this time.
26. Motion to Adjourn
Moved by: Ms. Ladouceur
That the public meeting of the OCH Board of Directors be adjourned.
Carried
The public meeting was adjourned at 6:25 p.m.
______Corporate Secretary
12 PENDING REVIEW
REPORT: OCHC-038/17
2016 AUDITED FINANCIAL STATEMENTS
TO: BOARD OF DIRECTORS
MEETING DATE: May 18, 2017
Nathalie Fauvel FROM: Vice President, Finance and Chief Financial Officer
PURPOSE: 2016 Audited Financial Statements FOR APPROVAL
STRATEGIC Foster an organizational culture of leadership, accountability and OBJECTIVE: continuous improvement
NEXT STEPS: Submit to Shareholder and Service Manager
1. CONTEXT
The Ontario Business Corporations Act (Section 159) requires approval of the audited financial statements and the signing of the balance sheet by any two members of the Board of Directors.
2. KEY APPROVAL ELEMENTS
The audited financial statements of the financial activity that occurred between January 1 and December 31, 2016, as well as the financial status of Ottawa Community Housing Corporation (OCH) at December 31, 2016.
3. CONSULTATION
This is an administrative report. The OCH auditors, Ernst & Young, presented the 2016 audit plan to the Finance and Audit Committee on December 15, 2016. The Engagement Letter outlining the Ernst & Young mandate was approved by the Board of Directors on January 19, 2017. Ernst & Young presented the audit results directly to the Finance and Audit Committee on May 9, 2017.
13 PENDING REVIEW
REPORT: OCHC-038/17
4. KEY IMPACTS, BENEFITS & RISKS
The audited overall financial performance of OCH is in line with the expected outcome, as presented and discussed at the Finance and Audit Committee on March 7, 2017, as well as at the Board Meeting on March 23, 2017.
OCH generated an additional contribution from operations to reserves of $4.4 million when compared to budget. This was largely due to the following key categories:
Hydro Rebate (to Green Fund) $ 3,939,000 Savings in Consulting and Legal Costs $ 1,300,000 Lower than anticipated SHIP/HHIP* Grant $ (848,000) Additional Contribution to Reserves $ 4,391,000 * Social Housing Improvement Program and Housing and Homeless Investment Plan
Additional Housing Units
Hayley Court
On October 29, 2014, the Board of Directors approved the reconstruction of 211 Lees Avenue (since been changed to 124 Robinson Avenue) with a redesign of 16 units. The rebuild cost was $4.0 million and added two units (from 14 to 16) to the community and was completed in 2016. OCH has funded the reconstruction from Capital Reserves and the proceeds recovered from the insurer.
Michele Drive
In 2015, the Board of Directors approved an infill development within the existing Michele Heights community, with the addition of six family units, including 4 four-bedroom units and 2 five-bedroom units.
Construction was completed in 2016 at a total cost of $2.25 million. The City of Ottawa initially approved a forgivable loan of $845,000 towards the project which was subsequently amended to $800,000 in 2016 and the Corporation financed the remaining $1.45 million from the Community Reinvestment Fund.
Uplands Drive
On May 12, 2016, the Board of Directors approved an infill development within the Ashgrove community (3225 Uplands Drive), with the addition of 16 family units.
Construction costs have been budgeted at $4.9 million, mostly to be incurred in 2017. The City of Ottawa approved a forgivable loan of $2.4 million towards the project with the remainder being financed from the Community Reinvestment Fund. Costs incurred in 2016 were nominal ($52,000). The construction is expected to be completed in 2017.
14 PENDING REVIEW
REPORT: OCHC-038/17
Carlington Community Health Hub
On November 17, 2016, the Board of Directors approved a revised construction budget for the joint venture with Carlington Community Health Centre (CCHC). The Corporation has leveraged a partnership to build 42 units of seniors housing.
The total cost for the residential units is estimated at $9.7 million; the Corporation has secured $4.6 million of grant funding from the City of Ottawa with the remainder being financed by a combination of mortgage proceeds, Community Reinvestment Fund and the Green Fund.
In 2016, the Corporation incurred $562,000 in costs related to legal, architectural and engineering fees. These costs were expensed against the Community Reinvestment Fund (CRF).
Disposition of Units
In 2016, OCH sold the following properties: 1029 Gill Avenue, 2713 Marie Street, 801 Trojan Avenue, 230-232 Holland Avenue, 363 Madison Avenue and 666-668 Gardenvale Road. The proceeds from the sales amounted to $2,849,000 and were contributed to the CRF.
Debt Financing
In 2016, OCH negotiated with Infrastructure Ontario (IO), the City of Ottawa and the Ontario Ministry of Housing to refinance 11 properties with an extended term which generated additional funds for capital repairs. The City of Ottawa has provided a 30-year commitment to extend the period of mortgage subsidy on these 11 properties and provides payments directly to IO as a payment guarantee.
The refinancing was secured in the form of a promissory note in the amount of $48.6 million that was issued in two tranches. The first tranche of $9.9 million was issued on April 1, 2016. The loan is repayable over 30 years at an interest rate of 3.61%, compounded monthly. The second tranche of $38.7 million was issued on August 1, 2016, and is repayable over 30 years at an interest rate of 3.27%, compounded monthly. OCH used $17.1 million to repay the mortgages and the remaining balance of $31.5 million was transferred to the Capital Reserves.
In 2016, OCH also refinanced 380 Somerset with the existing lender and raised a total of $1,013,000 that was transferred to the CRF.
Employee Related Expenses
For 2016, OCH continued to engage the services of an actuarial consulting firm to provide a determination of OCH’s obligation for future Workplace Safety and Insurance Board (WSIB) benefits and post-retirement benefits. The estimate as provided by the actuary, which is calculated based on the present value of future benefits, resulted in a net change of $301,000 from December 31, 2015 in the liability estimate for WSIB and post-retirement benefits at December 31, 2016. These estimates are based on a number of assumptions that are utilized in determining actuarial valuation of future benefits for both WSIB and post-retirement benefits.
15 PENDING REVIEW
REPORT: OCHC-038/17
Reserve Spending and Contributions
In 2016, capital spending totaled $39.6 million which is funded from the Capital Reserves.
Operating contributions to the Capital Reserves included the annual contribution of $15.3 million, the Social Housing Improvement Housing and Poverty Reduction grant from the City of $435,000, and the $3.0 million contribution resulting from the property tax exemption. In addition, $31.5 million came from refinancing activities.
In 2016, OCH made contributions to the Green Fund of $1.7 million from grants and photovoltaic electricity sales, including the Equipment Replacement Incentive Initiative. The $3.9 million in proceeds from Hydro Rebates was also contributed to the Green Fund. Expenses totalled $875,000 and included costs related to the Phase 3 Lighting Retrofit Program.
The Vehicle Reserve is used for the acquisition of new vehicles and receives its funding from the Capital Reserves. OCH transferred $945,000 to cover the required vehicle purchases for the year. At the end of 2016, the Vehicle Reserve has no balance.
5. FINANCIAL IMPACT
The financial impacts are detailed throughout this report and in Appendix B.
6. SUCCESS MEASURES
An unqualified audit opinion has been provided, confirming that the financial statements are presented in a fair, accurate and consistent manner.
7. NEXT STEPS
Once the Board of Directors has approved this report, the financial statements will be provided to the Shareholder and Service Manager.
8. RECOMMENDATIONS
That the Board of Directors approve the 2016 Audit Results (Appendix A) and the 2016 Audited Financial Statements (Appendix B).
APPENDICES A. 2016 AUDIT RESULTS B. 2016 OCH AUDITED FINANCIAL STATEMENTS
16
Ottawa Community Housing Corporation Audit Results 31 December 2016
17
3 May 2017
The Finance and Audit Committee Ottawa Community Housing Corporation
Dear Members of the Finance and Audit Committee,
We are pleased to provide the results of our audit of the financial statements of Ottawa Community Housing Corporation (the “Corporation”). This letter also includes the status of our audit, which we anticipate will be completed on or about 18 May 2017.
Our audit was designed to express an opinion on the 2016 financial statements. We continue to receive the full support and assistance of the Corporation’s personnel in conducting our audit. Open and candid dialogue with you is a critical step in the audit process, and in the overall corporate governance process and we appreciate this opportunity to share the insights from our audit with you.
At Ernst & Young, we continually evaluate the quality of our professionals’ work in order to deliver remarkable client service. We strive to provide you with audit services of the highest quality that will meet or exceed your expectations, and we encourage you to participate in our Assessment of Service Quality (ASQ) process to provide your input on our performance. The ASQ process is a critical tool that enables us to monitor and improve the quality of our audit services to the Corporation.
This report is intended solely for the information and use of Management and the Finance and Audit Committee. It is not intended to be, and should not be, used by anyone other than these specified parties.
We look forward to meeting with you to discuss the contents of this letter and answer any questions you may have about these or any other audit-related matters.
Yours very truly,
Chartered Professional Accountants Licensed Public Accountants
Deanna J. Monaghan
18
Agenda/Table of Contents
2016 Ernst & Young services ...... 3 Critical policies, estimates, areas of audit emphasis, and significant risks ...... 4 Fraud considerations and the risk of management override ...... 5 Summary of audit differences (SAD) ...... 5 Summary of significant disclosure deficiencies ...... 5 Changes from planning ...... 6 Appendix A – Required Communications ...... 7 Appendix B – Letter of Representations ...... 14
19 Page | 3
2016 Ernst & Young services
Services and deliverables Status update Audit and ► Express opinions on: ► Audit procedures to be completed on audit-related ► The financial statements of the the financial statements of the services Corporation for the year ended 31 Corporation: December 2016. ► Obtain a letter of representations ► The financial statements of the from management for the financial Carleton Condominium Corporation statements of the Corporation and No. 576 (“CCC”) for the year CCC. ended 31 December 2016. ► Complete subsequent events ► The Annual Information Return of review procedures for the financial the Corporation for the year ended statements of the Corporation and 31 December 2016. CCC. ► Obtain legal response letters from ► Issue a written communication to: the Corporation’s external legal ► Management and those charged counsel confirming management’s with governance describing assessment of any legal issues significant deficiencies in internal impacting the Corporation. control or other internal control ► Perform standard fraud and deficiencies that merit subsequent events inquiries with management’s attention identified those charged with the Finance and during our audit, should any be Audit Committee for the financial noted. statements of the Corporation and ► Those charged with governance CCC. that comments on the results of ► Obtain approval of the Corporation the audit and addresses matters and CCC financial statements from that we are required to the Board of Directors. communicate under our professional standards.
20 Page | 4
Critical policies, estimates, areas of audit emphasis, and significant risks
Area of emphasis/ Ernst & Young comments on quality and application of critical accounting accounting policy, significant estimates, financial statement policy/significant risks disclosures and related matters ► We performed detailed substantive testing on tenant billing and collection on a sample basis and verified that rent was calculated in Revenue – Rent accordance with the Housing Services Act (HSA). revenue and subsidies ► We performed substantive analytical procedures on rent revenue. ► We received a third-party confirmation for all subsidies received. ► No issues were noted as a result of the procedures performed. ► We reviewed the accounting treatment of the loan to verify it was treated in accordance with the requirements of the Service Manager (i.e. City of Ottawa). ► The requirements are that when outstanding debt corresponding to assets governed by the reporting requirements of the HSA and of the Infrastructure Ontario Service Manager is refinanced at an amount greater than the outstanding debt, the difference is recorded as an increase to capital (IO) loan assets and capital reserve. The current accounting treatment is not in accordance with PSAS. ► EY examined the new loan agreement with IO to refinance eleven mortgages to verify the presentation of the loan on the statements are in accordance with the HSA and Service Manager requirements. ► No issues were noted as a result of the procedures performed. ► We have updated our understanding of OCH’s processes for operating, capital and payroll expenses as well as capital assets through inquiries and by completing a walkthrough for each process. ► We have completed tests of controls and performed a test of details, on a sample basis, of operating and capital expenses. Expenditures and capital ► We have performed a test of details, on a sample basis, of payroll assets expenses incurred during the year and performed substantive analytical procedures to assess the reasonability of the total payroll expense. ► We have performed testing on the additions and disposals that occurred during the year and have performed substantive analytical procedures on the depreciation expense.
21 Page | 5
Area of emphasis/ Ernst & Young comments on quality and application of critical accounting accounting policy, significant estimates, financial statement policy/significant risks disclosures and related matters ► We confirmed the long term debt and interest expense with each significant lender, including Infrastructure Ontario, by confirming outstanding principal balance at year end, maturity date, interest Long-term debt and rate, interest and principal payments made during the year. interest expense ► We performed substantive analytical procedures on the interest expense as well as the allocation between short-term and long-term debt. ► No issues were noted as a result of the procedures performed.
Fraud considerations and the risk of management override
We are responsible for planning and performing our audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether caused by error or by fraud.
Our audit procedures will include: brainstorming, gathering information to facilitate the identification of and response to fraud risks and performing certain procedures to address the risk of management override, including examining journal entries, reviewing accounting estimates and evaluating the business rationale of significant unusual transactions.
No fraud was identified based on the procedures detailed above.
Summary of audit differences (SAD)
During the course of our audit, we accumulate differences between the amount, classification, presentation and disclosure of a financial statement item recorded or reported by the Corporation and the amount, classification or presentation and disclosure that we believe is required to be recorded or reported under generally accepted accounting principles. No differences were identified during the audit.
Summary of significant disclosure deficiencies
During the course or our audit, we identify those significant disclosures required in the 2016 financial statements of the Corporation, that we believe were not adequately reflected. No significant disclosure deficiencies were identified during the audit.
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Fair and transparent fees
The total fees for the 2016 audit-related fees were $54,400.
Changes from planning
Our materiality has not changed since the planning phase of our audit as the forecasted revenues of $137M were very close to the actual amount. The materiality remained at an amount of $4.1M.
Data analytics
By utilizing the latest technological developments and embracing digital innovation though analytics and other tools, we are changing the profile of our audits to better meet the requirements of our clients and OCH. Our analytics tool, EY Helix, has brought a more insightful audit experience by combining audit-relevant data with our advanced analytics and visualizations enabling us to focus on the right risks and provide a higher-quality audit with better insights.
During our audit, we were able to incorporate data analytics in order to analyze meaningful correlations within OCH’s data such as:
Fixed assets vs. long-term debt Tenant rent revenue vs. rent supplement revenue Cash vs. subsidy revenue
IT recommendations update
EY was engaged in 2016 to perform a follow-up assessment of the design and operations of IT General Controls (“ITGCs”) for Agresso and Northgate. While there have been improvements since the ITGC assessment performed in 2015, there are still areas where improvement is required in order to mitigate information technology risks that pertain to internal controls over financial reporting. As a result of our review, control deficiencies were identified and a detailed report was issued that outlined recommendations to address the control deficiencies. As a result, we were unable to have control reliance on the ITGCs of ABW for the 2016 audit.
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Appendix A – Required Communications
Area Comments Auditor’s responsibilities under Canadian GAAS, including discussion of the type of opinion we are issuing Upon completion of our remaining audit procedures, The financial statements are the responsibility of we currently expect to issue an unqualified opinion management. Our audit was designed in accordance on the Corporation’s financial statements as of and with Canadian auditing standards to obtain for the year ended 31 December 2016. reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. Overview of planned scope and timing
We discuss with the Finance and Audit Committee an overview of the planned audit scope and timing. These discussions are intended to assist the Finance Communicated with the audit planning session held and Audit Committee in better understanding the on December 15, 2016. consequences of the auditor’s work for their oversight activities, discussing with the auditors issues of risk and materiality, and identifying any areas for which they may request the auditor to undertake additional procedures. Other information in documents containing audited financial statements
Our financial statement audit opinion only relates to the financial statements and accompanying notes. However, we also review other information in documents such as the Annual Information Return, Our review of the Annual Information Return is and consider whether such information, or the completed and no material misstatement of fact in manner of its presentation, is materially inconsistent the other information. with the audited financial statements. If we conclude that a material inconsistency exists, we determine whether the financial statements, our auditor’s report, or both, require revision. In addition, we notify you if we conclude that there is a material misstatement of fact in the other information.
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Area Comments Major issues discussed with management in connection with initial or recurring retention
We discuss with the Finance and Audit Committee any major professional issues that were discussed (orally or in writing) with management in connection with our initial or recurring retention as the auditor, including, among other matters, any discussions None. regarding the application of accounting principles and auditing standards, the scope of the audit, financial statement disclosures and the wording of the auditor’s report. We communicate those major professional issues we discussed with management, prior to our being hired as the auditors, and during the client’s two most recently completed fiscal years and any subsequent interim period. Significant audit adjustments, including significant disclosure differences that merit the attention of the Finance and Audit Committee
We provide the Finance and Audit Committee with There were no significant corrected audit information about adjustments and disclosure adjustments or disclosure differences related to the differences that merit the attention of the Finance 2016 audit. and Audit Committee arising from the audit (whether corrected or not) that could in our judgment, either individually or in the aggregate, have a significant effect on the Corporation’s financial statements. Uncorrected misstatements, including significant disclosure differences that merit the attention of the Finance and Audit Committee, considered by management to be immaterial
We inform the Finance and Audit Committee about There were no uncorrected misstatements related uncorrected misstatements accumulated by us (i.e., to the 2016 audit. adjustments either identified by us or brought to our attention by management) during the current audit and pertaining to the latest period presented that were determined by management to be immaterial, both individually and in the aggregate, to the financial statements as a whole.
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Area Comments Critical accounting policies and practices
We have provided our views in the section titled, We communicate all critical accounting policies and “Critical policies, estimates, areas of audit practices used by the Corporation in preparing the emphasis, and significant risks.” financial statements and our assessment of the disclosure of such policies. Our judgments about the quality of the Corporation’s accounting principles
We discuss our judgments about the quality, not just We have provided our views in the section titled, the acceptability, of the accounting policies as “Critical policies, estimates, areas of audit applied in the Corporation’s financial reporting, emphasis, and significant risks.” including the consistency of the accounting policies and their application and the clarity and completeness of the financial statements and related disclosures. The adoption of, or a change in, an accounting principle
We determine that the Finance and Audit Committee are informed about the initial selection of, and any The financial statements have been prepared in changes in, significant accounting principles or accordance with reporting requirements of HSA and accounting policies or their application when the the City of Ottawa. accounting principle or its application, including alternative methods of applying the accounting principle, has a material effect on the financial statements. Methods of accounting for significant unusual transactions and for controversial or emerging areas We are not aware of any significant unusual transactions recorded by the Corporation or of any We determine that the Finance and Audit Committee significant accounting policies used by the are informed about the methods used to account for Corporation related to controversial or emerging significant unusual transactions and the effects of areas for which there is a lack of authoritative significant accounting policies in controversial or guidance. emerging areas for which there is a lack of authoritative guidance or consensus.
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Area Comments Sensitive accounting estimates
The preparation of the financial statements requires the use of accounting estimates. Certain estimates are particularly sensitive due to their significance to the financial statements and the possibility that We have provided our views in the section titled, future events may differ significantly from “Critical policies, estimates, areas of audit emphasis management’s current judgments. and significant risks.”
We determine that the Finance and Audit Committee are informed about management’s process for formulating particularly sensitive accounting estimates and about the basis for our conclusions regarding the reasonableness of those estimates. Material alternative accounting treatments discussed with management
We discuss with the Finance and Audit Committee all alternative accounting treatments within GAAP for policies and practices related to material items (including recognition, measurement, presentation During fiscal year, no material alternative and disclosure alternatives) that have been accounting treatments were discussed with discussed with management during the current audit management. period including: ► Ramifications of the use of such alternative disclosures and treatments, including the reasons why the alternative was selected and, if management did not select our preferred alternative, the reasons why it was not selected. ► The treatment preferred by us. Disagreements with management
We discuss with the Finance and Audit Committee any disagreements with management, whether or None. not satisfactorily resolved, about matters that individually or in the aggregate could be significant to the Corporation’s financial statements or the auditor’s reports.
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Area Comments Management’s consultations with other accountants
When we are aware that management has consulted None of which we are aware. with other accountants about auditing, accounting, or reporting matters, we discuss with the Finance and Audit Committee our views about significant matters that were the subject of such consultation. Serious difficulties encountered in dealing with management when performing the audit
We inform the Finance and Audit Committee of any None. serious difficulties encountered in dealing with management related to the performance of the audit. Fraud and non-compliance with laws and regulations (illegal acts)
We communicate to the Finance and Audit Committee fraud and illegal acts involving senior We are not aware of any matters that require management and fraud and illegal acts (whether communication. Refer to the “Fraud considerations caused by senior management or other employees) and risk of management override” section for more that cause a material misstatement of the financial information about our procedures related to the statements. risks of material misstatement due to fraud.
We also communicate other matters of non- compliance with laws and regulations that come to our attention during the audit, unless they are clearly inconsequential. Significant deficiencies in internal control over financial reporting
We inform the Finance and Audit Committee of any No significant deficiencies in internal control over significant deficiencies in internal control over financial reporting have been identified. financial reporting that was identified through the audit process.
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Area Comments Other material written communications with, and representations sought from management We have provided you with a copy of the following
communications with management: We determine that the Finance and Audit Committee have received copies of all material written ► Engagement letters communications with management, including ► Letter of representations representations requested from them related to uncorrected errors. Independence matters We communicate, at least annually, the following to the Finance and Audit Committee: ► Describe, in writing, all relationships between Ernst & Young and our associated entities and the Corporation and its affiliates or persons in financial reporting oversight roles at the Corporation that may reasonably be thought to bear on our independence; We will confirm our independence at the meeting.
► Discuss with the Finance and Audit Committee the potential effects of those relationships on independence; and
► Affirm that we are independent with respect to the Corporation within the meaning of Canadian professional standards. Other findings or issues regarding the oversight of the financial reporting process There are no other findings or issues arising from
the audit that are, in our judgment, significant and We communicate other findings or issues, if any, relevant to the Finance and Audit Committee arising from the audit that are, in our professional regarding the oversight of the financial reporting judgment, significant and relevant to the Finance process. and Audit Committee regarding their oversight of the financial reporting process. Subsequent events
We inquire of management and, where appropriate, There were no subsequent events that impacted the the Finance and Audit Committee as to whether any statements subsequent events have occurred which might affect the financial statements.
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Area Comments
Related party transactions
We will communicate with the Finance and Audit None of which we are aware. Committee significant matters arising during the audit in connection with the Corporation's related parties.
Matters related to the component entities of OCHC
We will communicate with the Finance and Audit None of which we are aware. Committee significant matters arising during the audit in connection with the Corporation's component entities.
All relationships between auditor and OCHC
We will communicate with the Finance and Audit None of which we are aware. Committee all relationships between the auditor and OCHC.
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Appendix B – Letter of Representations
18 May 2017
Ernst & Young LLP Chartered Professional Accountants 99 Bank Street, Suite 1200 Ottawa ON K1P 6B9
In connection with your audit of the financial statements of Ottawa Community Housing Corporation (the “Corporation”) as of 31 December 2016 and for the year ended, we recognize that obtaining representations from us concerning the information contained in this letter is a significant procedure in enabling you to form an opinion whether the financial statements are prepared, in all material respects, in accordance the Housing Services Act (HSA) and the guidance in its application by the City of Ottawa as Service Manager.
We understand that the purpose of your audit of our financial statements is to express an opinion thereon and your audit was conducted in accordance with Canadian generally accepted auditing standards, which involves an examination of the accounting system, internal control and related data to the extent you considered necessary in the circumstances.
Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of financial statement information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement.
Accordingly, we make the following representations, as of 12 May 2017, which are true to the best of our knowledge and belief:
Financial statements and financial records 1. We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter signed 19 January 2017, for the preparation of the financial statements in accordance with the HSA and the guidance in its application by the City of Ottawa as Service Manager. 2. These financial statements are not the Corporation’s general purpose financial statements. They have been prepared on the basis described in the notes to the financial statements in accordance
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with regulatory, legislative or written contractual requirements. The specified user of the financial statements and their intended purposes are to follow the requirements of the HSA. 3. We acknowledge that, as members of management of the Corporation, we are responsible for preparing the financial statements. We believe the financial statements referred to above are prepared, in all material respects, in accordance with the HSA and the guidance in its application by the City of Ottawa as Service Manager. The significant accounting policies adopted in the preparation of the financial statements, and the significant judgements in applying these accounting policies, are fully and fairly described in the financial statements. 4. As members of management of the Corporation, we believe that the Corporation has a system of internal controls adequate to permit the preparation of accurate financial statements in accordance with the HSA and the guidance in its application by the City of Ottawa as Service Manager. 5. We are not aware of any significant deficiencies in the design or operation of internal control over financial reporting. There have been no significant changes in internal control since 31 December 2016.
Fraud and error 6. We acknowledge that we are responsible for the design, implementation and maintenance of internal controls to prevent and detect fraud and error. 7. We have assessed the risk that the financial statements may be materially misstated as a result of fraud and have determined such risk to be low.
We have no knowledge of any fraud or suspected fraud affecting the entity involving management, employees who have significant roles in internal control, or others, where the fraud could have a non-trivial effect on the financial statements. We have no knowledge of any allegations of fraud or suspected fraud affecting the Corporation’s financial statements received in communications from employees, former employees or others. In addition, all “whistle- blower” allegations coming to our attention have been disclosed to you. No irregularities or shortages have occurred and nothing has come to light which might reflect upon the honesty or integrity of any employee, agent or officer of the Corporation.
Compliance with laws and regulations 8. We have disclosed to you all known actual or suspected non-compliance with laws and regulations whose effects should be considered when preparing the financial statements.
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Independence 9. We are not aware of any capital lease, material cooperative arrangement, or other business relationship between the Corporation and Ernst & Young LLP or any other member firm of the global Ernst & Young organization. 10. We are not aware of any reason that Ernst & Young LLP would not be considered to be independent for purposes of the Corporation’s audit.
Conflicts of interest 11. There are no instances where any officer or employee of the Corporation has an interest in a Corporation with which the Corporation does business that would be considered a “conflict of interest.” Such an interest would be contrary to Corporation policy.
Completeness of information 12. We have provided you with: (a) Access to all information of which we are aware that is relevant to the preparation of the financial statements such as records, documentation and other matters. (b) Additional information that you have requested from us for the purpose of the audit. (c) Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. 13. We have made available to you all minutes of the meetings of shareholders, directors and committees of directors (or summaries of actions of recent meetings for which minutes have not yet been prepared) held through the years to the most recent meeting. 14. We also have made available to you all significant contracts, including amendments, and agreements and have communicated to you all significant oral agreements. We have complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance. 15. There are no transactions of a material nature, individually or in the aggregate, that have not been properly recorded in the accounting records underlying the financial statements. 16. We confirm the completeness of information provided regarding the identification of related parties. We have disclosed to you the identity of the Corporation’s related parties and all related party relationships and transactions of which we are aware, including sales, purchases, loans, transfers of assets, liabilities and services, leasing arrangements, guarantees, non-monetary transactions and transactions for no consideration for the years ended, as well as related balances due to or from such parties at the year end. These transactions have been properly measured and disclosed in the financial statements.
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Recognition, measurement and disclosure 17. We believe that the significant assumptions underlying accounting estimates, including those measured at fair value, and disclosures used in the preparation of the financial statements are reasonable and appropriate in the circumstances. 18. We have provided additional disclosures in the financial statements, when compliance with the HSA and the guidance in its application by the City of Ottawa as Service Manager is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity’s financial position and financial performance. 19. We have no plans or intentions that may materially affect the carrying value or classification of assets and liabilities reflected in the financial statements.
Risks and estimation uncertainties 20. We have disclosed the assumptions we have made about the future, and all other major sources of estimation uncertainties, which have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Ownership of assets 21. Except for properties capitalized under capital leases, the Corporation has satisfactory title to all assets appearing in the balance sheet, and there are no liens or encumbrances on the Corporation’s assets, nor has any asset been pledged. All assets to which the Corporation has satisfactory title appear in the balance sheet.
Receivables and revenues 22. Receivables represent valid claims against the debtors indicated. All revenue recognized as of the balance sheet date has been realized (or is realizable) and earned. Revenue has not been recognized before (1) persuasive evidence of an arrangement exists, (2) service rendered, (3) consideration to be received is fixed or determinable, and (4) collectability is reasonably assured. 23. Adequate provision has been made for losses, costs, and expenses that may be incurred subsequent to the balance sheet date in respect of sales and services rendered prior to that date and for uncollectible accounts, discounts, returns, and allowances, etc., that may be incurred in the collection of receivables at that date.
Financial instruments 24. The Corporation has properly recorded all relevant financial assets at fair value. 25. We have evaluated if there are indicators of impairment for all financial assets measured at cost or amortized cost and where there has been a significant adverse change in the expected timing or amount of future cash flows from a financial asset or group of similar financial assets, we
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have assessed if a reduction in the carrying value is necessary. When an impairment is necessary, the carrying amount of the asset, or group of assets have been reduced to the highest of the cash flows expected to be generated by holding the asset, the amount that could be realized by selling the asset, and the amount the entity expects to realize by exercising any right to collateral held to secure repayment of the asset net of all costs necessary to exercise those rights. The amount of the decline in fair value has been included in net income.
Arrangements with financial institutions 26. Arrangements with financial institutions involving compensating balances or other arrangements involving restrictions on cash balances and line-of-credit or similar arrangements have been properly recorded or disclosed in the financial statements.
Property, plant and equipment and assets under capital leases 27. All charges to capital asset accounts and additions under capital leases during the year represent actual additions and no expenditures of a capital nature have been charged to expense during the year. 28. All property, plant and equipment sold or dismantled and all capital lease terminations during the year have been properly accounted for in the accounts. 29. Appropriate rates have been used to depreciate and amortize these assets over our estimation of their useful lives. 30. No events or changes in circumstances of the property, plant and equipment have occurred that indicate the assets no longer have any long-term service potential to the Corporation. Our estimates of future service potential are based on reasonable and supportable assumptions regarding the expected use of the assets.
Events of default under debt agreements 31. No events of default have occurred with respect to any of the Corporation’s debt agreements.
Liabilities and contingencies 32. All liabilities and contingencies, including those associated with guarantees, whether written or oral, have been disclosed to you and are appropriately reflected in the financial statements. 33. We have informed you of all outstanding and possible claims, whether or not they have been discussed with legal counsel. 34. We are unaware of any known or probable instances of non-compliance with the requirements of regulatory or governmental authorities, including their financial reporting requirements, and there have been no internal investigations or communications from regulatory agencies or government representatives concerning investigations or allegations of non-compliance.
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35. We are unaware of any violations or possible violations of laws or regulations the effects of which should be considered for disclosure in the financial statements or as the basis of recording a contingent loss.
Oral or written guarantees 36. There are no oral or written guarantees including guarantees of the debt of others.
Purchase commitments 37. At the year end, the Corporation had no commitments that involve a high degree of speculative risk, when the taking of such risks is not inherent in the nature of the business, or commitments to make expenditures that are abnormal in relation to the financial position or usual business operations. (e.g., contracts or purchase agreements above market price; repurchase or other agreements not in the ordinary course of business; material commitments for the purchase of property, plant and equipment, etc.).
Employee future benefits 38. We have disclosed to you all significant benefits, other retirement and post-employment benefits (as defined in PSAS Section 3250) promised and have made available to you all significant summary plan descriptions, benefit communications, and all other relevant information, including plan changes, that constitute the plan. 39. The source data used in the preparation of the actuarial present value of the other retirement and post-employment benefits attributed to services rendered up to 31 December 2016 is complete and accurate. All employee future benefit plans have been included in the valuation provided to you. 40. All assumptions used in the preparation of the actuarial present value of other retirement and post-employment benefits attributed to services rendered up to 31 December 2016, including, but not limited to, the determination of the discount rate, are our best estimate of the most likely set of conditions affecting future events. The significant assumptions used are related to note 10 of the financial statements. These assumptions are internally consistent, are consistent with the asset valuation method, and are consistent with the assumptions used in prior years. 41. The extrapolation of the actuarial present value of other retirement and post-employment benefits to 31 December 2016 from the date of the most recent actuarial valuation, 31 December 2013, has been properly prepared using source data which is complete and accurate. All assumptions used in the preparation of the extrapolation are consistent with the assumptions used in the preparation of such valuation, and events occurring in the extrapolation period that materially affect the actuarial present value of accrued employee future benefits attributed to services rendered up to 31 December 2016 have been properly reflected in the determination of those accrued benefits.
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42. No events have occurred subsequent to 31 December 2016 that materially affect the amount of the actuarial present value of other retirement and post-employment benefits attributed to services rendered up to 31 December 2016.
Contributions 43. All contributions received were complete and appropriately classified and administered according to the restrictions specified by the donor.
Going concern 44. We have made an assessment of the Organization’s ability to continue as a going concern.
Subsequent events 45. Subsequent to 31 December 2016, no events or transactions have occurred or are pending that would have a material effect on the financial statements at that date or for the period then ended, or that are of such significance in relation to the Corporation’s affairs to require mention in a note to the financial statements in order to make them not misleading regarding the financial position, results of operations, or cash flows of the Corporation.
Stéphane Giguère, Chief Executive Officer Date
Nathalie Fauvel, Chief Financial Officer Date
Venanzio Giannantonio, Director of Finance Date
37
Financial statements
Ottawa Community Housing Corporation December 31, 2016
DRAFT FOR DISCUSSION PURPOSES ONLY 38
Independent auditors’ report
To the Board of Directors of Ottawa Community Housing Corporation
Report on the Financial Statements We have audited the accompanying financial statements of Ottawa Community Housing Corporation, which comprise the balance sheet as at December 31, 2016, and the statements of operations and surplus, reserves and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management’s responsibility for the financial statements Management is responsible for the preparation of these financial statements in accordance with the Housing Services Act and guidance in its application by the City of Ottawa as Service Manager and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained in our audit is sufficient and appropriate to provide a basis for our audit opinion.
Opinion In our opinion, the financial statements are prepared, in all material respects, in accordance with the Housing Services Act and the guidance in its application by the City of Ottawa as Service Manager as at December 31, 2016.
DRAFT FOR DISCUSSION PURPOSES ONLY 39
– 2 –
Basis of accounting and restriction on use Without modifying our opinion, we draw attention to note 2 to the financial statements, which describes the basis of accounting. As required by the Ontario Business Corporations Act, we report that, in our opinion, these principles have been applied on a basis consistent with that of the preceding year.
These financial statements, which have not been, and were not intended to be, prepared in accordance with Canadian generally accepted accounting principles, are solely for the information and use of the Directors, Shareholders and Service Manager of the Corporation. These financial statements are not intended to be and should not be used by anyone other than the specified users or for any other purpose.
Ottawa, Canada Chartered Professional Accountants ●, 2017 Licensed Public Accountants
DRAFT FOR DISCUSSION PURPOSES ONLY 40 Ottawa Community Housing Corporation
Incorporated under the laws of Ontario
Balance sheet [in thousands of Canadian dollars]
As at December 31
2016 2015 $ $
Assets Current Cash and cash equivalents 65,575 44,250 Rent receivable 1,834 1,989 Other accounts receivable 749 1,008 HST receivable 2,018 1,964 Prepaid expenses 2,888 2,792 Total current assets 73,064 52,003 Capital assets [note 3] 283,191 269,430 356,255 321,433
Liabilities and shareholders’ equity Current Subsidies payable - City of Ottawa (service manager) [note 14] 1,214 192 Accounts payable and accrued liabilities [note 14] 17,945 15,177 Accrued interest on long term debt 793 767 Prepaid rents 1,613 1,604 WSIB benefits costs - current [note 11] 435 419 Current portion of long term debt [note 5] 17,954 18,242 Total current liabilities 39,954 36,401 Employee benefits costs [note 10] 4,154 3,999 WSIB benefits costs - future [note 11] 2,158 2,028 Forgivable loans [note 4] 9,719 9,797 Long term debt [note 5] 245,639 230,670 Total liabilities 301,624 282,895 Contingent liabilities [note 12]
Shareholders’ equity Contributed surplus [note 7] 2,400 2,400 Reserves [note 8] 52,231 36,138 Total shareholders’ equity 54,631 38,538 356,255 321,433
See accompanying notes
On behalf of the Board:
Director Director
DRAFT FOR DISCUSSION PURPOSES ONLY 41 Ottawa Community Housing Corporation
Statement of operations and surplus [in thousands of Canadian dollars]
Year ended December 31
2016 2015 $ $
Revenue Rents 65,583 65,191 Subsidies Service manager 60,173 62,631 Service manager – safer communities 2,436 2,413 Other revenue 8,424 4,359 136,616 134,594
Operating costs Utilities 23,964 23,439 Building operations 21,430 22,050 Staffing costs 31,243 30,210 Administration and other 5,572 5,650 Total operating costs 82,209 81,349
Fixed costs Municipal taxes 1,129 1,107 Interest on long term debt 12,324 12,705 Depreciation of capital assets 18,277 18,639 31,730 32,451 Total expenses 113,939 113,800
Net revenues before reserve contribution for the year 22,677 20,794 Contributions to reserves (22,677) (20,794) Net surplus for the year — —
See accompanying notes
DRAFT FOR DISCUSSION PURPOSES ONLY 42
Ottawa Community Housing Corporation
Statement of reserves [in thousands of Canadian dollars]
Year ended December 31
Invested in Federal Public Housing Community Capital Capital Assets Operating Operating Reinvestment Total Reserves Vehicle [Equity Program Surplus Reserve Fund Fund Green Fund 2016 2015 $ $ $ $ $ $ $ $ $
Balance, beginning of year 22,688 — 8,030 741 2,163 2,516 — 36,138 49,117 Contributions from operations 18,739 — — 832 (1,117) 284 3,939 22,677 20,794 Other contributions — — — — — — 1,691 1,691 2,624 Realized value from IO financing [note 3] 31,500 — — — — — — 31,500 7,460 Interest income 436 — — 14 42 48 — 540 493 Realized gains — — — — — 2,849 — 2,849 662 Expenses (39,604) (945) — — — (1,740) (875) (43,164) (45,012) Interfund transfers 595 945 (819) (834) — 113 — — — Balance, end of year 34,354 — 7,211 753 1,088 4,070 4,755 52,231 36,138
See accompanying notes
DRAFT FOR DISCUSSION43 PURPOSES ONLY Ottawa Community Housing Corporation
Statement of cash flows [in thousands of Canadian dollars]
Year ended December 31
2016 2015 $ $
Operating activities Net revenues before reserve contribution for the year 22,677 20,794 Add item not affecting cash Depreciation of capital assets 18,277 18,639 Changes in non-cash working capital balances Rent receivable and other accounts receivable 414 236 HST receivable and prepaid expenses (150) (479) Subsidies payable – City of Ottawa (service manager) 1,022 (395) Accounts payable and accrued liabilities 2,768 2,480 Accrued interest on long-term debt 26 (30) Prepaid rents 9 411 Employee benefits costs 155 97 WSIB benefits costs 146 145 Cash provided by operating activities 45,344 41,898
Investing activities Redemption of marketable securities — 10,000 Interest earned on reserves balance 540 493 Cash provided by investing activities 540 10,493
Financing activities Mortgages and debentures additions 49,613 17,265 Mortgages and debentures repayments (34,932) (22,781) Changes in non-cash financing balances Forgivable loans (78) (34) Cash provided by (used in) financing activities 14,603 (5,550)
Capital activities Other contributions made to reserves 4,540 3,286 Acquisition of capital assets (538) (1,956) Capital expense charged to reserves (43,164) (45,012) Cash used in capital activities (39,162) (43,682)
Net increase in cash and cash equivalents during the year 21,325 3,159 Cash and cash equivalents, beginning of the year 44,250 41,091 Cash and cash equivalents, end of the year 65,575 44,250
Supplemental cash flow disclosure Cash paid for interest 12,324 12,705
See accompanying notes DRAFT FOR DISCUSSION PURPOSES ONLY 44 Ottawa Community Housing Corporation
Notes to financial statements [in thousands of Canadian dollars]
December 31, 2016
1. Organization Ottawa Community Housing Corporation [the “Corporation”] provides and manages quality, safe and affordable housing for low and moderate income households in Ottawa.
Most of the mortgaged properties of the Corporation are governed by operating agreements with the Province of Ontario and/or Canada Mortgage and Housing Corporation [“CMHC”]. These agreements include provision for approval of rental rates, depreciation charges and contributions to the capital reserve.
The operating agreements are administered by the Service Manager [“City of Ottawa”] under the Housing Services Act [“HSA”]. The HSA came into force on January 1, 2012, and replaces the former Social Housing Reform Act.
The Corporation is a non-profit organization under paragraph 149(1)(d) of the Income Tax Act (Canada) and, as such, is not subject to income taxes.
2. Significant accounting policies These financial statements have been prepared in accordance with the reporting requirements of the HSA and of the City of Ottawa as Service Manager. The basis of accounting differs from Canadian Generally Accepted Accounting Standards [“CGAAP”] for the public sector, including the PS4200-4270 series for Government Not-for- profit organizations [“Government NPOs”] due to:
[a] Capital repairs and replacement, including the acquisition of office furniture and equipment, are charged directly to the Capital Reserve in the statement of reserves [rather than being capitalized on the balance sheet and depreciated over their useful lives]. [b] Capital assets governed by the reporting requirements of the HSA and of the City of Ottawa are recorded at the net value of the outstanding debt corresponding to those assets. [c] When outstanding debt corresponding to assets governed by the reporting requirements of the HSA and of the City of Ottawa is refinanced at an amount greater than the outstanding debt, the difference is recorded as an increase to capital assets and the Capital Assets Reserve. [d] Depreciation of capital assets [including land] governed by the reporting requirements of the HSA and of the City of Ottawa is provided on the same basis as the principal repayments on the corresponding debt during the year. [e] Interest income, realized and unrealized gains and losses and any impairment related to marketable securities are recorded directly to the statement of reserves rather than being recorded in the statement of operations and surplus.
Only capital assets within the Equity Program follow CGAAP for the public sector including the PS4200-4270 series for Government NPOs. The Equity Program is deemed to be the Invested in the Capital Assets Reserve as disclosed in the statement of reserves.
These financial statements are expressed in Canadian dollars and the following is a summary of the significant accounting policies used in the preparation of the Corporation’s financial statements:
Functional currency The financial statements are stated in thousands of Canadian dollars, which is the functional currency.
DRAFT FOR DISCUSSION PURPOSES ONLY 1 45 Ottawa Community Housing Corporation
Notes to financial statements [in thousands of Canadian dollars]
December 31, 2016
Use of estimates The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the year. Actual results could differ from those estimates.
Revenue recognition The Corporation recognizes subsidies as revenue when received or receivable if all conditions required for the subsidy are met, the amount to be received can be reasonably estimated and collection is reasonably assured. Grants for capital purposes [repairs or new developments] are recognized as revenue in the Capital Reserve when received. The Corporation uses the accrual method of accounting to recognize rent revenue.
Financial instruments The Corporation’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities and long-term debt. The carrying values of the Corporation’s financial instruments approximate their fair values unless otherwise noted.
Where long-term debt contains forgiveness clauses, they are recorded net of the forgiveness.
Cash and cash equivalents Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of 90 days or less as at the balance sheet date.
Capital assets and depreciation Capital assets governed by the reporting requirements of the HSA and of the City of Ottawa are recorded at the net value of the outstanding debt corresponding to those assets, less accumulated depreciation. All other capital assets [i.e. Equity Program] are recorded at cost less accumulated depreciation. Cost includes the original cost of the land, buildings and other related costs.
Depreciation of capital assets [including land] governed by the reporting requirements of the HSA and of the City of Ottawa is provided on the same basis as the principal repayments on the corresponding debt during the year. All other capital assets [i.e. the Equity Program] are depreciated using the straight-line method based on the estimated useful lives of the assets, which range from 30 to 50 years.
Reserves Capital repairs and replacement, including the acquisition of office furniture and equipment, are charged directly to the Capital Reserve in the statement of reserves.
Interest income, realized and unrealized gains and losses and any impairment related to marketable securities are recorded directly to the statement of reserves rather than being recorded in the statement of operations and surplus.
DRAFT FOR DISCUSSION PURPOSES ONLY 2 46 Ottawa Community Housing Corporation
Notes to financial statements [in thousands of Canadian dollars]
December 31, 2016
When outstanding debt corresponding to assets governed by the reporting requirements of the HSA and of the City of Ottawa is refinanced at an amount greater than the outstanding debt, the difference is recorded as an increase to capital assets and Capital Reserve.
Employee future benefits and pension agreements The Corporation has adopted the following policies with respect to employee benefit plans:
[i] The Corporation’s contributions to a multi-employer, defined benefit pension plan are expensed when contributions are due; [ii] The costs of termination benefits and compensated absences are recognized when an event that obligates the Corporation occurs. Costs include projected future income payments, health care continuation costs and fees paid to independent administrators of these plans, calculated on a present value basis; [iii] The costs of post-retirement employee benefits are actuarially determined using the projected unit credit actuarial cost method. The discount rate is based on the Corporation’s internal cost of borrowing and all other assumptions are based on management’s best estimate of future events. Actuarial gains or losses are amortized over the expected remaining service life of the related employee groups; and [iv] The costs of the workplace safety and insurance obligations [‘’WSIB’’] are actuarially determined based on the present value of future benefits on existing claims. The discount rate is based on the Corporation’s internal cost of borrowing. Actuarial gains and losses are amortized over the term of the liabilities.
3. Capital assets Capital assets consist of the following:
2016 2015 $ $
Land 73,271 73,271 Prepaid land leases 1,104 1,104 Buildings and equipment 484,649 452,846 559,024 527,221 Less accumulated depreciation 275,833 257,791 Net book value 283,191 269,430
In 2016, eleven properties with a net book value of $17,100, were refinanced with Infrastructure Ontario [“IO”]. The loan agreement with IO required a market evaluation and Environmental Site Assessment for each property. As a result, the Corporation was able to borrow $48,600 from IO, which represents the fair value of the eleven properties. The Corporation used $17,100 to repay the mortgages and the remaining balance of $31,500 was transferred to the Capital Reserve. The Corporation recorded an increase in the property value for these properties at the refinanced value of $31,500.
DRAFT FOR DISCUSSION PURPOSES ONLY 3 47 Ottawa Community Housing Corporation
Notes to financial statements [in thousands of Canadian dollars]
December 31, 2016
Additional housing units Hayley Court On October 29, 2014, the Board of Directors approved the reconstruction of 211 Lees Avenue with a redesign of 16 units. The rebuild cost $4,026 and added two units [14 to 16] to the Community and was completed in 2016.
Michele Drive In 2015, the Board of Directors approved an infill development within the existing Michele Heights community, with the construction of 6 family units, including 4 four bedroom units and 2 five bedroom units. In 2015, the City of Ottawa approved a forgivable loan of $845 towards the project. In 2016 the agreement was amended and the forgivable loan was adjusted to $800. Construction was completed in 2016 at a total cost of $2,253. The Corporation financed $1,453 of the total construction costs from the Community Reinvestment Fund.
Uplands Drive On May 12, 2016, the Board of Directors approved an in-fill development within the Ashgrove Community (3225 Uplands Drive), with the construction of 16 family units. In 2016, the City of Ottawa approved a forgivable loan of $2,400 towards the project. The project is expected to be completed in 2017 at a total cost of $4,900. Construction costs are being financed from the Community Reinvestment Fund and totalled $52 in 2016.
Carlington Community Health Hub On November 17, 2016, the Board of Directors approved a final construction budget for the joint venture with Carlington Community Health Centre (CCHC). The corporation has leveraged a partnership to build 42 units of seniors housing. The Corporation has secured grant funding from the City of Ottawa of $4.6 million to fund that portion of costs related to the housing units. The total cost for the residential units is estimated at $9.7 million. In 2016, the Corporation incurred $562 in costs related to legal, architectural and engineering fees. These costs were expensed against the Community Reinvestment Fund (“CRF”).
Disposition of Properties As of November 30, 2015, the Board of Directors has adopted a comprehensive approach to portfolio management which includes new development and divestiture of select stock. In 2016 OCH sold the following properties: 1029 Gill Avenue, 2713 Marie Street, 801 Trojan Avenue, 230-232 Holland Avenue, 363 Madison Avenue and 666-668 Gardenvale Road. The proceeds from the sale of these units were $2,849 and allocated to the CRF to support future development.
Demolition of Properties In 2013, the Board of Directors approved the demolition of three properties (171 Bruyère, Carson’s Bungalow, and the former Carson’s Community House) that required extensive capital investment for repairs and deferred maintenance. In 2015, OCH demolished Carson’s Bungalow and the former Carson’s Community House and in March 2016 OCH demolished 171 Bruyère.
DRAFT FOR DISCUSSION PURPOSES ONLY 4 48 Ottawa Community Housing Corporation
Notes to financial statements [in thousands of Canadian dollars]
December 31, 2016
4. Forgivable loans Forgivable loans consist of the following:
2016 2015 $ $
Canada-Ontario AHP [380 Somerset] 1,740 1,740 Canada-Ontario AHP [245 Crichton] 720 720 Residential Rehabilitation Assistance Program [“RRAP”] 59 92 Housing and Poverty Reduction [714 Carson] 4,000 4,000 Housing and Homelessness Investment [Old St. Patrick] 1,200 1,200 IAH 2014 and Capital Grant [2926 Michele Drive] 800 845 Dover Court Recreation Center [2 Van Lang Private] 1,200 1,200 Forgivable loans total 9,719 9,797
Canada-Ontario Affordable Housing Program [“AHP”] The AHP loans are not repayable as long as the project is operated within the terms and conditions of the agreement entered into with the Ministry of Municipal Affairs and Housing [“MMAH”]. If the agreements are breached, the full value of the loans may be repayable prior to the maturity date.
As at December 31, 2016, the Corporation is in compliance with the terms and conditions of these agreements.
RRAP These loans have been recorded as leasehold improvements which are depreciated at the same rate that the loans are forgiven. The balance of the RRAP loans are not repayable as long as the projects are managed and operated within the terms and conditions of the mortgage and operating agreement entered into with CMHC and ending on October 1, 2018.
As at December 31, 2016, the Corporation is in compliance with the terms and conditions of the agreements.
Housing and Poverty Reduction Investment Plan The loan is not repayable as long as the project is operated within the terms and conditions entered into with the City of Ottawa. If the agreement is breached, the full value of the loan may be repayable at any time during the 35- year term ending on January 1, 2049.
Housing and Homelessness Investment Plan The loan is not repayable as long as the project is operated within the terms and conditions entered into with the City of Ottawa. If the agreement is breached, the full value of the loan may be repayable at any time during the 35- year term ending on March 1, 2050.
Investment in Affordable Housing and Capital Grant In 2015, the City of Ottawa approved a forgivable loan of $845 towards the project and OCH booked the full $845. In 2016 the agreement was amended and the forgivable loan was adjusted to $800. The loan is not repayable as long as the project is operated within the terms and conditions entered into with the City of Ottawa. If the agreement is breached, the full value of the loan may be repayable at any time during the 35-year term ending on January 1, 2051.
DRAFT FOR DISCUSSION PURPOSES ONLY 5 49 Ottawa Community Housing Corporation
Notes to financial statements [in thousands of Canadian dollars]
December 31, 2016
Dover Court Recreation Center The loan is not repayable as long as the terms and conditions entered with the City of Ottawa are within the agreement. If the agreement is breached, the full value of the loan may be repayable at any time during the 21- year term ending on June 1, 2036.
5. Long-term debt 2016 2015 $ $
Mortgages 79,943 104,220 Debenture – Public Program 29,683 36,747 Debenture – Infrastructure Ontario 153,967 107,945 263,593 248,912 Less current portion of long-term debt 17,954 18,242 Long-term debt 245,639 230,670
In 2016, the Corporation, working with Infrastructure Ontario, the City of Ottawa and the Ministry of Housing, refinanced eleven properties with long-term debt negotiated with Infrastructure Ontario. By extending the amortization period on new debt with a fixed interest rate, the Corporation generated additional funds for capital repair. The City of Ottawa has provided a commitment to extend the period of the mortgage subsidy on these eleven properties and provides payments directly to Infrastructure Ontario as a payment guarantee.
The refinancing was secured in the form of a promissory note in the amount of $48,600 for long- term financing. The first tranche of $9.9 million was issued on April 1, 2016. The note is repayable over 30 years at an interest rate of 3.61%, compounded monthly. The second tranche of $38.7 million was issued on August 1, 2016. The note is repayable over 30 years at an interest rate of 3.27%, compounded monthly.
In 2016 OCH also refinanced 380 Somerset with the existing lender and raised an additional $1,013 that was transferred to the CRF.
Principal repayments required for the years from 2017 to 2021 and thereafter for the Corporation’s outstanding debt are expected to be approximately as follows:
$
2017 17,954 2018 18,047 2019 16,840 2020 14,984 2021 13,094 Thereafter 182,674 Principal repayments 263,593
DRAFT FOR DISCUSSION PURPOSES ONLY 6 50 Ottawa Community Housing Corporation
Notes to financial statements [in thousands of Canadian dollars]
December 31, 2016
6. Credit facility The Corporation may avail up to $2,000 with a chartered bank in the form of an operating credit line and/or standby letters of credit and/or letters of guarantee. The Corporation has outstanding letters of credit totalling $1,216 on these instruments. These instruments bear interest at the bank’s prime rate. The chartered bank includes a commission of 2.00% per annum and other fees of 0.25% per annum.
The Corporation may avail up to $6,000 with a chartered bank in the form of a non-revolving bank loan to fund 50% of the purchase price for parcels of vacant land for the construction of social housing. The corporation has not drawn any amounts on this non-revolving bank loan. This instrument bears interest at the bank’s prime rate, plus 0.25% per annum. The chartered bank includes a stand-by fee of .00125% on any unused portion per annum.
7. Contributed surplus The contributed surplus of $2,400 consists of $1,650 which represents the net assets of the predecessor company [the City of Ottawa Non-Profit Housing Corporation] that was transferred to the Corporation effective September 2,002. The remaining $750 represents the land value for the Crichton Street property that was gifted by the shareholder in 2010.
8. Reserves The Corporation has the following reserves:
[a] Capital Reserve Capital Reserve for the renovation or improvement of the contributing property for work which meets the definition of capital repairs and maintenance. In addition, acquisitions of new capital assets required to maintain and manage the portfolio are expensed against the Capital Reserve. Contributions are made on an annual basis in accordance with program requirements or operating agreements.
The contributions from operations amounted to $18,739 in 2016 [2015 – $19,154] which included $435 [2015 – $2,618] from the $8.7 million under the Social Housing Improvement Program (SHIP) and the Housing and Homelessness Investment Plan approved by City Council.
In 2016, the Capital Reserve received the following interfund transfers:
• $422 [2015 – $497] from the Investment in Capital Assets Reserve to recognize annual amortization • $834 [2015 – $1,952] from the Federal Operating Surplus to the Capital Reserve • $284 [2015 – zero] from the Equity Operating Surplus to the Capital Reserve
The Corporation also made the following interfund transfer from Capital Reserve during the year:
• $945 [2015 – $691] to the Vehicle Reserve to cover deficit in this fund
DRAFT FOR DISCUSSION PURPOSES ONLY 7 51 Ottawa Community Housing Corporation
Notes to financial statements [in thousands of Canadian dollars]
December 31, 2016
[b] Vehicle Reserve The Vehicle Reserve is used for the acquisition of new vehicles and $945 [2015 – $691] was expensed during the year for the purchase of new vehicles. The Vehicle Reserve received $945 from the Capital Reserve to cover the deficit.
[c] Investment in Capital Assets Reserve The Investment in Capital Assets Reserve consists of housing acquisitions within the Equity program. The reserve balance reflects the depreciation of the assets.
In 2016, the Corporation decreased the Investment in Capital Assets Reserve by $819 [2015 – decrease of $3,672], which reflects the following:
• $422 [2015 – $497] transferred to the Capital Reserve to recognize annual amortization • $1,013 transferred to the Community Reinvestment Fund to reflect receipt of mortgage proceeds for 380 Somerset
In 2016, the Investment in Capital Assets Reserve received the following interfund transfers:
• $54 from the Community Reinvestment Fund to reflect the variance in the forgivable loan for the Van Lang development • $562 from the Community Reinvestment Fund to recognize development of Carlington Community Health Hub
[d] Federal Operating Surplus The Federal Operating Surplus was identified in 2004 and consists of the cumulative operating surpluses generated in the Community Sponsored and the Limited Dividend Apartments programs, for sites where operating agreements still exist. Operating surpluses in the Federal program are contributed either to the Capital Reserve for the sites in the program or kept in the Federal Operating Surplus.
The Federal Operating Surplus made an interfund transfer to the Capital Reserve of $834 [2015 – $1,952] due to operating surplus generated by these sites.
[e] Public Housing Operating Reserve In 2008, the Service Manager and the Corporation agreed on a new operating agreement that took effect January 1, 2009, which includes a revision to the calculation of subsidy funding for the Public Housing Program. The new subsidy funding follows a formula similar to the Provincial Reformed Program and allows for both an Operating and a Capital Reserve for the Public Housing Program. Contributions are made at year end in amounts set down in the subsidy calculations.
DRAFT FOR DISCUSSION PURPOSES ONLY 8 52 Ottawa Community Housing Corporation
Notes to financial statements [in thousands of Canadian dollars]
December 31, 2016
[f] Community Reinvestment Fund The Community Reinvestment Fund is a discretionary reserve that exists to maintain or develop housing or services. In 2016, the Board of Directors approved the further sale of six properties, with proceeds to be contributed to the Community Reinvestment Fund and used to support new housing development. The gross proceeds from the sales amounted to $2,849 [2015 – $662] and were contributed to the Community Reinvestment Fund.
In 2016 the Corporation made the following interfund transfer from the Community Reinvestment Fund:
• $54 to the Investment in Capital Assets Reserve to reflect the variance in the forgivable loan for the Van Lang development • $562 to the Investment in Capital Assets Reserve to recognize development of Carlington Community Health Hub • $284 [2015 – nil] from the Equity Operating Surplus to the Capital Reserve
In 2016, the Community Reinvestment Fund received the following interfund transfers:
• $1,013 transferred from the Investment in Capital Assets Reserve to reflect receipt of mortgage proceeds for 380 Somerset
[g] Green Fund The Green Fund was established in 2010 from grants received under the EcoENERGY Retrofit and Ontario Homes Energy Savings programs. The use of the reserve, which is at the discretion of management, is to support specific operational or capital expenditures which increase the environmental sustainability of the Corporation. Further contributions to the reserve may come from:
[i] Net receipts from energy grants which have not formed part of the budget envelope of the Capital Works Program; [ii] A proportion of net savings generated from sustainability projects when systems are in place to adequately quantify such savings; and [iii] A proportion of new income generated by sustainability projects [i.e. sale of energy].
In 2016, the Corporation received contributions of $3,939 [2015 – nil] from operations to reflect proceeds received from Hydro rebates. In addition, the Corporation received $1,691 [2015 – $939] from grants, rebates and photovoltaic electricity sales.
9. Pension agreements The Corporation makes contributions to the Ontario Municipal Employees Retirement Fund [“OMERS.”] which is a multi-employer plan on behalf of most of its employees. The plan is a defined benefit plan which specifies the amount of the retirement benefit to be received by the employees based on length of service and rates of pay. The Corporation’s contribution to the OMERS plan for 2016 was $2,531 [2015 – $2,357] for current services and is included as an expense in the statement of operations and surplus. These contributions were matched with identical employee contributions for both years.
DRAFT FOR DISCUSSION PURPOSES ONLY 9 53 Ottawa Community Housing Corporation
Notes to financial statements [in thousands of Canadian dollars]
December 31, 2016
10. Employee benefit costs Employee benefit costs consist of the following:
2016 2015 $ $
Post-retirement Benefits 2,970 2,864 Vested Employee Benefits 1,184 1,135 Employee Benefit Costs 4,154 3,999
The defined benefit plan relating to post-retirement benefits provides medical benefits to the Corporation’s employee bargaining units and is applicable to employees who retire between the ages of 55 and 65 with an unreduced pension.
The continuity for post-retirement benefits for 2016 is as follows:
$
Balance, beginning of the year 2,864 Service cost 119 Interest cost 91 Amortization of actuarial gain (45) Benefits paid (59) Balance, end of year 2,970
The liability for post-retirement benefits is calculated based on estimates of future outlays required under contractual agreements with the Corporation’s employee bargaining units. These estimates are based on a number of assumptions regarding the expected costs of benefits, which are dependent on the demographic makeup of the bargaining units, future interest rates, and inflation rates. The Corporation engages the services of an actuarial consulting firm to provide a determination of the Corporation’s obligation for post-retirement benefits.
Due to the complexities in valuing the plan, an actuarial valuation is conducted on a periodic basis. The liabilities reported in these financial statements are based on a valuation as at December 31, 2013 with an extrapolation to December 31, 2016.
Gains and losses are generated from each year due to changes in certain assumptions and clarifications to the plan previously provided by the Corporation. These gains and losses are not expensed in the current year but rather amortized over the expected average remaining service life of the related employee groups. In 2016, amortization began for a 2015 gain of $23. Amortization for a 2016 loss of $49 will commence in 2017.
DRAFT FOR DISCUSSION PURPOSES ONLY 10 54 Ottawa Community Housing Corporation
Notes to financial statements [in thousands of Canadian dollars]
December 31, 2016
A number of estimates and assumptions are utilized in determining an actuarial valuation of benefit plans. The significant actuarial assumptions adopted in measuring the Corporation’s accrued obligation for post-retirement and benefit cost for post-retirement benefits are as follows:
2016 2015
Discount rate 3.70% 3.90% Health care inflation rate 9.0% grading linearly 9.0% grading linearly to 4.5% in 2031 to 4.5% in 2031
11. WSIB The Corporation is a Schedule 2 Employer under the Workplace and Safety Insurance Act and, as such, assumes full responsibility for financing its workplace safety insurance costs. The accrued obligation represents the present value of future benefits on existing claims.
The continuity for WSIB benefits costs for 2016 is as follows:
$
Balance, beginning of the year 2,447 Service cost 406 Interest cost 119 Amortization of actuarial loss 40 Benefits paid (419)
Less current portion WSIB benefits costs (435) Balance, end of year 2,158
The liability for WSIB benefits is calculated based on the present value of future benefits on existing claims. The Corporation engages the services of an actuarial consulting firm to provide a determination of the Corporation’s obligation for future WSIB benefits.
Due to the complexities in valuing the future benefit costs, actuarial valuations are conducted on a periodic basis. The liabilities reported in these financial statements are based on a valuation as at December 31, 2014 with an extrapolation to December 31, 2016.
Gains and losses are generated for each valuation due to changes in certain assumptions and changes in existing claims previously provided by the Corporation. These gains and losses are not expensed in the current year, but rather amortized over the term of the liabilities, which is approximately 10 years.
DRAFT FOR DISCUSSION PURPOSES ONLY 11 55 Ottawa Community Housing Corporation
Notes to financial statements [in thousands of Canadian dollars]
December 31, 2016
A number of estimates and assumptions are utilized in determining an actuarial valuation of the future benefit costs. The significant actuarial assumptions adopted in measuring the Corporation’s present value of future benefits per the most recent valuation are as follows:
2016 2015 % %
Discount rate 4.25 4.25 Loss of earnings 1.75 1.75 Health care benefits (1.75) (1.75) Fully indexed survivor benefits 2.25 2.25 Non-economic loss awards 3.75 3.75
12. Contingent liabilities In the normal course of operations, the Corporation becomes involved in various claims and legal proceedings. While the final outcome with respect to claims and legal proceedings pending as at December 31, 2016 cannot be predicted with certainty, it is the opinion of management that their resolution will not have a material adverse effect on the Corporation’s financial position or results of operations.
13. Commitments The Corporation has commitments on capital projects as at December 31, 2016 in the amount of $18,519 [2015 – $12,585].
14. Related party transactions The Corporation transacts with its sole shareholder, the City of Ottawa and its subsidiaries, who also acts as the Service Manager for the subsidized programs. The transactions include receipt of subsidy payments and capital grants, purchases of electricity and water and sewage services and payment of property taxes. These transactions are all in the normal course of business for the Corporation.
Revenue and Accounts Payable/Receivable Total subsidy revenue amounted to $62,609 [2015 – $65,044] with a balance of $1,214 payable as at December 31, 2016 [2015 – $192 payable].
DRAFT FOR DISCUSSION PURPOSES ONLY 12 56 Ottawa Community Housing Corporation
Notes to financial statements [in thousands of Canadian dollars]
December 31, 2016
Expenses and Accounts Payable The following expenses are included in the statement of operations and surplus for the year ended December 31, 2016:
2016 2015 $ $
Property tax 1,129 1,107 Electricity charges 10,638 10,031 Water and sewage costs 9,239 8,333
Included within accounts payable and accrued liabilities on the balance sheet as at December 31, 2016 is a balance payable of $3,057 [2015 – $2,190 payable].
15. Capital management In managing capital, the Corporation focuses on liquid resources available for operations and capital expenditures. The Corporation’s objective is to have sufficient liquidity to manage both operating and capital expenditures. The need for sufficient liquidity is considered in the preparation of an annual budget and in the monitoring of cash flows and actual results compared to the budget. As at December 31, 2016, the Corporation has met its objective of having sufficient liquidity to meet its current obligations.
16. Financial instruments Credit risk The Corporation is exposed to credit risk on the rents receivable from tenants and on other receivables from other parties. In order to reduce its credit risk, the Corporation has adopted credit policies which include the regular review of outstanding receivables. The Corporation does not have a significant exposure to any individual tenant or other parties.
Interest rate risk The investments with flexible interest rates will expose the Corporation to interest rate risk. There is risk of market value adjustments on investments which may result in cash flow risk. As at December 31, 2016, the Corporation has no holdings in equities or bonds.
The short-term bank credit facilities bear interest at fluctuating rates. Due to the positive cash flow of the Corporation, there has been no need to use the credit facility in the last few years, thus the exposure to interest rate risk on this facility is nominal. All other financial assets and liabilities, in the form of receivables and payables, are non-interest bearing. There is an interest rate risk in the Equity program with regard to refinancing of mortgages at renewal.
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Notes to financial statements [in thousands of Canadian dollars]
December 31, 2016
Market risk Market risk includes the risk arising from changes in interest rates and the risks arising from the failure of a party to a financial instrument to discharge an obligation when it is due.
Concentration of risk exists when a significant portion of the portfolio is invested in securities with similar characteristics or subject to similar economic, political or other conditions. The Corporation has adopted an investment policy, with a target mix of investment types designed to achieve optimal return within reasonable risk tolerance. As at December 31, 2016, the Corporation has no holdings in equities or bonds.
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Ottawa Community Housing Corporation Schedule A Schedule of mortgages, debentures and loans
As at December 31
Mortgages Maturity Interest Principal Mortgage renewal Repayments 2016 Principal Program and property date rate 31-Dec-15 issued in 2016 Interest Principal Yearly Payment 31-Dec-16 % $ $ $ $ $ $
Bank of Montreal Provincial reformed Hintonburg Place 1-Mar-28 6.011% 4,968,913 — 284,513 283,943 568,456 4,684,970 Equity general — Head office 01-May-16; 01-May-21 4.91%/2.790% 1,394,587 — 47,110 71,167 118,277 1,323,420 Carson road 1-Jan-26 3.800% 3,000,000 — 102,471 67,556 170,027 2,932,444 Total Bank of Montreal 9,363,500 — 434,094 422,666 856,760 8,940,834
Canada Mortgage and Housing Corporation Limited Dividend - Apartments MacDonald Manor 1-Oct-17 5.875% 98,803 — 4,350 52,606 56,955 46,197 Pere Charlebois 1-Oct-17 5.875% 40,128 — 1,767 21,366 23,132 18,762 Donald Court 1-Jan-17 & 1-Oct-17 6.125% & 5.375% 63,773 — 2,423 47,014 49,437 16,759 Blair House 1-Oct-17 6.125% 56,759 — 2,605 30,182 32,787 26,577 Community Sponsored Carson/Paul 1-Sep-27 8.000% 1,759,676 — 121,503 84,000 205,504 1,675,676 Riddell 1-Oct-27 8.000% 147,094 — 10,175 6,940 17,114 140,154 Edgeworth, 460 1-Oct-27 8.000% 243,838 — 16,868 11,501 28,369 232,337 Tweedsmuir 1-Feb-28 8.000% 419,911 — 29,250 18,897 48,147 401,014 Beausejour 2 1-Feb-29 8.000% 2,796,094 — 200,739 112,593 313,332 2,683,501 Ashgrove 1-Feb-29 8.000% 2,948,526 — 212,594 119,784 332,378 2,828,742 Municipal Non-Profit Cahill Place 1-Sep-16 4.320% 1,598,361 (1,396,906) 43,301 201,455 244,756 — Cairine Court 1-Sep-16 4.480% 656,838 (529,759) 17,859 127,080 144,939 — Dubeau Court 1-Sep-16 4.480% 282,952 (228,210) 7,670 54,744 62,414 — Bathgate Court 1-Sep-16 2.630% 473,190 (340,940) 7,272 132,250 139,523 —
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Ottawa Community Housing Corporation Schedule A Schedule of mortgages, debentures and loans
As at December 31
Mortgages Maturity Interest Principal Mortgage renewal Repayments 2016 Principal Program and property date rate 31-Dec-15 issued in 2016 Interest Principal Yearly Payment 31-Dec-16 % $ $ $ $ $ $
Loretta/Young 1-Jun-17 4.720% 185,607 — 6,080 122,331 128,411 63,276 Shearwater Court 1-Jun-17 4.720% 342,968 — 11,236 226,045 237,281 116,923 Lebreton 3 1-Aug-17 4.720% 182,532 — 6,244 107,845 114,089 74,687 Tapiola Court 1-Aug-19 3.440% 1,312,026 — 39,510 341,735 381,245 970,291 Beausejour 4 1-Jun-20 3.150% 89,724 — 2,540 18,860 21,400 70,864 Haley Court 1-Apr-21 3.150% 295,720 — 8,519 51,752 60,271 243,968 Christie Place 1-Jun-21 3.150% 1,234,246 — 35,657 208,891 244,548 1,025,355 Woodland Place 1-Jun-21 3.150% 1,396,860 — 40,355 236,413 276,768 1,160,447 Provincial Reformed Strathcona: Wiggins, 301-427 1-Sep-16 4.320% 2,410,768 (2,278,719) 67,451 132,050 199,501 — Strathcona: Goulburn, 300 1-Sep-16 4.480% 2,963,483 (2,853,232) 86,651 110,251 196,902 — Strathcona: Renovations 2 1-Mar-18 4.370% 164,422 — 6,918 10,401 17,318 154,021 Lavigne Court 1-Sep-19 3.440% 2,080,724 — 67,786 212,255 280,041 1,868,469 Cameron Court 1-Jun-21 3.150% 2,159,241 — 63,891 259,467 323,358 1,899,774 Esson Place 1-Jun-21 3.150% 2,041,636 — 60,412 245,335 305,746 1,796,301 Total Canada Mortgage and Housing Corporation 28,445,900 (7,627,766) 1,181,626 3,304,043 4,485,666 17,514,095
Scotia mortgage Municipal Non-Profit MacKay, 375 1-Aug-16 5.033% 9,877 — 185 9,877 10,062 — Woodland Place 1-Sep-18 4.443% 917,626 — 37,479 145,797 183,276 771,829 Provincial Reformed Bronson Terrace 1-May-16 4.894% 779,277 (749,851) 15,595 29,426 45,021 — Mayview, 1433 1-May-16 4.894% 1,360,246 (1,308,881) 27,221 51,364 78,585 — Lexington 1-May-16 4.894% 2,084,124 (2,005,438) 41,708 78,686 120,394 — St. Laurent Place 1-Aug-16 5.033% 5,678,979 (5,408,081) 186,161 270,898 457,059 — Cumberland/George 1-Jan-17 4.366% 1,936,570 — 79,767 204,561 284,328 1,732,009 Karsh Court 1-Jun-17 4.713% 1,733,849 — 75,966 233,802 309,768 1,500,047 McCartin Place 1-Jun-17 4.713% 2,991,022 — 135,333 201,255 336,588 2,789,767 St. Peter's Court 1-Sep-17 4.946% 1,700,532 — 78,399 217,953 296,352 1,482,579 Winthrop Court 1-Sep-18 4.443% 1,886,562 — 78,765 214,287 293,052 1,672,275 Marion Dewar Place 1-May-24 5.830% 7,133,246 — 403,417 286,604 690,021 6,846,642 Total Scotia Mortgage 28,211,910 (9,472,251) 1,159,996 1,944,510 3,104,506 16,795,148
DRAFT FOR DISCUSSION60 PURPOSES ONLY
Ottawa Community Housing Corporation Schedule A Schedule of mortgages, debentures and loans
As at December 31
Mortgages Maturity Interest Principal Mortgage renewal Repayments 2016 Principal Program and property date rate 31-Dec-15 issued in 2016 Interest Principal Yearly Payment 31-Dec-16 % $ $ $ $ $ $
Toronto Dominion Bank Equity General 380 Somerset Street 01-Mar-16; 01-Apr-26 4.80%/2.700% 2,565,505 1,013,313 93,392 96,776 190,168 3,482,042 Arlington 1-Dec-18 6.040% 1,044,589 — 60,826 54,865 115,691 989,724 Provincial Reformed Strathcona: Wiggins 310, 320 & 430 1-Mar-17 4.547% 7,300,664 — 318,400 509,743 828,143 6,790,921 Lady Stanley Place 1-Aug-23 6.005% 3,127,978 — 176,579 332,097 508,675 2,795,881 Vachon Place 1-Nov-23 5.967% 2,863,978 — 164,225 171,017 335,242 2,692,961 McAuley Place 1-Jun-24 6.100% 7,831,957 — 459,816 437,272 897,088 7,394,685 Scotthill 1-Dec-24 6.752% 6,382,367 — 413,898 367,102 781,000 6,015,265 Total Toronto Dominion Bank 31,117,038 1,013,313 1,687,136 1,968,872 3,656,007 30,161,479
Royal Bank Municipal Non-Profit Lebreton 2 1-Jun-16 4.821% 49,314 — 689 49,315 50,003 — Beausejour 3 1-Jun-16 4.821% 14,667 — 204 14,667 14,871 — 2-50 Jessica 1-Nov-17 4.963% 4,018,547 — 191,731 254,441 446,172 3,764,106 Brain Bourns, Place 2-Aug-19 4.204% 1,329,056 — 53,563 96,376 149,939 1,232,680 Strathcona: Wiggins, 300 1-Mar-21 4.088% 1,669,950 — 65,232 135,464 200,696 1,534,486 Total Royal Bank 7,081,534 — 311,419 550,263 861,681 6,531,272 Grand total all mortgages 104,219,882 (16,086,704) 4,774,271 8,190,354 12,964,620 79,942,828
DRAFT FOR DISCUSSION61 PURPOSES ONLY Ottawa Community Housing Corporation Schedule A
Schedule of debentures - infrastructure Ontairo
As at December 31
Institution Maturity Interest Principal Mortgage renewal Repayments 2016 Principal Program and property date rate 31-Dec-15 issued in 2016 Interest Principal Yearly Payment 31-Dec-16 % $ $ $ $ $ $
Infrastructure Ontario
Various Projects 16-Jan-40 4.960% 17,045,518 837,305 361,843 1,199,148 16,683,675
Equity General 312 Cumberland 2-Jun-36 4.710% 4,115,968 — 191,247 122,189 313,436 3,993,779 Richelieu Court 15-Jul-36 4.600% 1,164,153 — 52,824 34,774 87,598 1,129,379 Ron Kolbus Place 16-Dec-43 4.540% 4,255,771 — 191,619 77,167 268,786 4,178,604
Tranche 1-2012 Lebreton1, Fairlea Court, Rockingham, Hasenack Place, Lebreton 55-65, Blohm Court 3-Jul-42 3.930% 24,211,858 — 942,097 527,190 1,469,287 23,684,668
Tranche 2-2012 Allard Place, Strathcona: Sentier 3-Dec-42 3.870% 8,924,449 — 342,008 191,243 533,251 8,733,206
Tranche 1-2013 Strathcona: Renovations 1 Gilmour, May Nickson place 2-Aug-42 4.380% 11,236,151 — 483,409 214,855 698,264 11,021,296
Tranche 2-2013
Bruyère & Bélanger Manor Strathcona:Nancy Smith, Eva Taylor, Orchard Grove, Revell Court 2-Dec-43 4.570% 15,762,146 — 708,130 286,270 994,400 15,475,876
Tranche 2-2014 Strathcona: Wiggins, 206-296 Silver Heights 3-Nov-44 3.810% 9,165,367 — 346,125 177,318 523,443 8,988,049
Tranche 2015 Thorncliffe Court; Spadina Place; Nepean Place 15-Oct-45 3.790% 12,063,751 — 453,380 222,364 675,744 11,841,387
Tranche 1-2016 212 Bronson Avenue; 1433 Mayview; 507 Riverdale 2-May-46 3.610% — 9,900,000 207,507 107,952 315,459 9,792,048
Tranche 2-2016 Cahill Place; Cairine Court; Dubeau Court; Bathgate Court; Lebreton 2; Strathcona Wiggins 301-427; Strathcona; Goulburn 300; St. Laurent Place 2-Aug-46 3.270% — 38,700,000 420,792 254,608 675,400 38,445,392 Infrastructure Ontario 107,945,132 6248,600,000 5,176,443 2,577,773 7,754,216 153,967,359
Ottawa Community Housing Corporation Schedule A
Schedule of mortgages, debentures and loans
Debentures Repayments 2016 Maturity Interest Principal Principal date rate 31-Dec-15 Interest Principal 31-Dec-16 % $ $ $ $
Debentures payable - public program
Various Projects 1-Jan-14 to 1-Jan-26 36,746,501 2,325,240 7,063,560 29,682,941 Total debentures - public program 36,746,501 2,325,240 7,063,560 29,682,941
GRAND TOTAL - all mortgages and debentures 248,911,515 12,275,954 17,831,687 263,593,128
DRAFT FOR DISCUSSION63 PURPOSES ONLY PENDING REVIEW
REPORT: OCHC-039/17
FINANCIAL ACCOUNTABILITY AND PERFORMANCE MONITORING – MARCH 31, 2017
TO: BOARD OF DIRECTORS
MEETING DATE: May 18, 2017
Ven Giannantonio FROM: Director of Finance
PURPOSE: Financial Reporting to March 31, 2017 FOR INFORMATION
STRATEGIC Foster an organizational culture of leadership, accountability and OBJECTIVE: continuous improvement
NEXT STEPS:
1. EXECUTIVE SUMMARY
. As at March 31, 2017, $31.5 million has been expended across all funds or 16% of the annual budget. . Spending pattern is consistent with prior years, with a variance primarily related to Building Operations and the Admin & Other expenses categories. . The under-spend is isolated to the Capital and Community Reinvestment Fund (CRF) funds, where spending is expected to ramp up later in the year. . Total revenue at March 31, 2017 stood at $34.6 million across all funds, or 22% of budget.
2. CONTEXT
The 2017 budget was prepared in accordance with the following fund categories:
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. An Operating Fund that records sources and uses of funds related to day-to-day operations and includes tenant rent and operating expenses such as utilities and debt servicing. . A Capital Fund that supports work that is not part of normal day-to-day maintenance; the work is durable and includes the replacement of significant building components or an improvement that increases the useful life of the asset. The fund can also cover the acquisition of office furniture and equipment, including information management and technology. The fund also covers salary expenses related to such capital work. . A Green Fund that supports specific operational or capital initiatives which increase the environmental sustainability of OCH. Contributions to the fund may include energy grants which do not form part of the Capital Reserves; net savings generated from sustainability projects; and a proportion of new income generated from sustainability projects. . The Community Reinvestment Fund (CRF) is a discretionary reserve that exists to support major development and redevelopment initiatives. . The Vehicle Fund supports the acquisition of new vehicles. . The Invested in Capital Assets Fund (ICAF) concerns acquisitions within the Equity program and reflects the depreciation of the assets.
Appendix A (Ottawa Community Housing – March 31, 2017 Financial Position by Fund) shows the annual budget and actual activity to March 31, 2017 for the identified funds. There is no projection to year-end at this time, but a forecast to year-end will be provided in the latter part of the fiscal year, where a more accurate extrapolation can be made with actual activity than spans more than one quarter.
Appendix B (Ottawa Community Housing – March 31, 2017 Financial Position Dashboard) presents a visual summary of total OCH expenses and revenues with the following information: . Total 2017 expenses (at March 31, 2017) with a comparison to the budget . Mix by major categories . Departmental performance
3. CONSULTATION
The Financial Accountability and Performance Monitoring Report is reviewed with the Finance and Audit Committee and provided to the Board of Directors as an information report on a quarterly basis.
The CEO, Vice-Presidents and Directors of OCH access and review their financial reports on an ongoing basis.
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This report was received by the Finance & Audit Committee on May 9, 2017.
4. KEY IMPACTS, BENEFITS & RISKS
The quarterly presentation of revenues and expenses captures important drivers and assists the OCH senior management team, Board and Board Committees, in assessing performance against approved budgets and enables appropriate oversight to ensure good financial stewardship.
Budget monitoring allows for early identification of potential issues or opportunities which inform and allow for more effective decision-making and optimal use of funds to benefit the organization and ultimately tenants.
5. FINANCIAL IMPACT
Operating Fund (OP) . As at March 31, 2017, total Operating Fund expenditures stood at $24.6 million or 21% of budget. − Debt servicing costs are at $6.6 million or 22% and expected to be within budget by the year end, when a non-cash amortization expense within the Equity program will be recognized. − Staffing costs stood at $7.5 million or 23%. The modest underspend reflects some late staffing. − Utility costs stood at $4.4 million or 18% of budget. − Building Operations which are funded by the Operating Fund stood at $4.3 million or 19% of budget. It is anticipated that annual Building Operations expenses will align with the full year budget. − Administration and other costs stood at $1.7 million or 20% of budget.
. As at March 31, 2017, total Operating Fund Revenue stood at $33.8 million or 25% of budget. − Service Manager funding is tracking as expected - $16.1 million or 25% of budget. OCH has reviewed the first quarter tenant profile for those programs under the Operating Agreement to ensure the Rent Geared to Income (RGI) subsidy is tracking per the budget calculation. Any variance will be reflected in the projection to year-end and will be communicated to the Service Manager. − Tenant rent and other revenue is tracking as expected - $16.6 million (25% of budget) and $1.1 million (26% of budget) respectively.
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Capital Fund (CAP) . Spending from Capital Reserves stood at $5.4 million or 8% of the full year budget of $65.7 million; spending is expected to ramp up in the summer and fall. . 42% of the overall capital budget is committed, in progress, or completed. . SHIP and SHARP funding is budgeted at $16.2 million for 2017. To date, $4.5 million has been received with the remainder expected to flow in later in 2017.
Green Fund (GF) . The total expenses for the Green Fund stood at $681,000 or 37% of budget. Much of the spending is related to the LED Lighting Phase 3 project which carried over from 2016.
Community Reinvestment Fund (CRF) . Total expenses for the Community Reinvestment Fund stood at $870,000 or 8% of the annual budget, of which $635,000 represents the costs for the Carlington Community Health Hub.
6. CONCLUSION
For the quarter ending March 31, 2017, OCH revenues and expenditure are in line with the 2017 budget. Projections to year-end will be presented in the second quarter report.
7. RECOMMENDATION
That the Board of Directors receive this report for information.
APPENDICES
A. OTTAWA COMMUNITY HOUSING – MARCH 31, 2017 FINANCIAL POSITION BY FUND B. OTTAWA COMMUNITY HOUSING – MARCH 31, 2017 FINANCIAL POSITION BY DASHBOARDS
67 FOR INFORMATION REPORT: OCHC-XXX/17
APPENDIX A
68 FOR INFORMATION REPORT: OCHC-XXX/17
APPENDIX B
OCH EXPENSE DASHBOARD (AS AT END MARCH) ACTUAL VS BUDGET PERFORMANCE TRENDS DEPARTMENT DETAILS
MARCH PERFOMANCE SCORECARD ($'000) Current Month (March) Prior Year This Month (March) YTD Prior Year YTD YOY Growth 18,423 13,780 31,521 24,249 29.99%
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OCH REVENUE DASHBOARD (AS AT END MARCH) ACTUAL VS BUDGET PERFORMANCE TRENDS DEPARTMENT DETAILS
MARCH PERFOMANCE SCORECARD ($'000) Current Month (March) Prior Year This Month (March) YTD Prior Year YTD YOY Growth 11,257 10,872 34,582 33,330 3.76%
70 PENDING REVIEW
REPORT: OCHC-040/17
OCH CONNECT UPDATE
TO: BOARD OF DIRECTORS
MEETING DATE: May 18, 2017
Patricia Tessier FROM: Vice President, Organizational Effectiveness
PURPOSE: To provide an update on the new OCH Connect intranet and board FOR INFORMATION and committee portal
STRATEGIC Foster an organizational culture of leadership, accountability and OBJECTIVE: continuous improvement Roll out electronic document and records management functionality NEXT STEPS: for Phase 1 departments (CEO, OE, Finance) in August 2017
1. EXECUTIVE SUMMARY
. OCH Connect (the new Intranet) was introduced to staff in April 2017 and provides centralized access to OCH business systems, documents, communications material and collaboration tools. . There are two tools that have been developed as part of the OCH Connect project: ‒ Q-BIT is the central source of corporate performance indicators and reports providing business intelligence to support OCH management decision making. ‒ Policy+ is a single point for easy access to OCH policies and associated procedures, standards and guides. . In addition to OCH Connect, a newly-developed board portal called OCH Corporate was also launched. . Access to these tools will provide the Board and Committee members with additional information to assist them in executing their oversight responsibilities.
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2. CONTEXT
. In 2011, OCH introduced an on-premises SharePoint intranet, which has seen moderate staff utilization focused primarily on collaboration on corporate projects. Electronic document and records management processes were not implemented as part of the project. . Recent staff consultation, third-party analysis and software review identified a need to develop a redesigned intranet solution to support improved electronic document and records management processes. . In 2015, work began to define requirements and procure a solution. OCH Connect has been under development since September 2016. . Work completed on the initial 2011 intranet has been used to build important capacity to advance OCH Connect. . OCH has been using contracted information management services for the design and development of the system. . OCH Connect is built with SharePoint Online and will support improved staff communication, collaboration, access to business information and standardized document and records management processes. . The intranet will be the central access point to other OCH information systems including Northgate and ABW. . OCH Connect is designed to have similar branding, navigation and ease of use as the public OCH website.
3. CONSULTATION
. OCH Connect internal work group. . OCH Connect Steering Committee. . Extended Leadership Team. . Information management consultants. . Staff were consulted in the design of OCH Connect. . This report was received by the Corporate Performance Committee on April 12, 2017.
4. KEY IMPACTS, BENEFITS & RISKS
. Simplified and timely access to OCH policies, strategic information and business analysis. . Streamlined reporting and reduced need for Committee and Board members to rely on governance reports. . Improved information sharing and communication between staff, board and committees.
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. Enhanced staff collaboration, interaction and engagement. . Increased standardization of electronic document and records management practices. . User access, records management and system security all managed in accordance with current OCH applicable policies and practices.
5. FINANCIAL IMPACT
. There are no new financial implications associated with this report. . OCH Connect development and implementation are funded from the Organizational Effectiveness budget approved by the Board. The budget allocated was approximately $175,000. . Q-BIT and Policy+ are being developed and maintained with existing resources.
6. CONCLUSION
. Employees were introduced to OCH Connect in April 2017. . Q-BIT and Policy+ are now available to Board and Committee members.
7. RECOMMENDATION (S)
. That the Board of Directors receive for information this update report on the new OCH Connect intranet and board and committee portal.
73 - 3 - PENDING REVIEW
REPORT: OCHC-041/17
3225 UPLANDS PROJECT
TO: BOARD OF DIRECTORS
MEETING DATE: May 18, 2017
FROM: Barron Meyerhoffer Director, Planning and Engineering PURPOSE: To update the Board on the Uplands infill project FOR INFORMATION STRATEGIC Innovate to meet housing and financial needs OBJECTIVE: NEXT STEPS: Achieve site plan approval, commence construction
74 1. EXECUTIVE SUMMARY
. OCH was successful in obtaining a $2.4 million grant from the City of Ottawa Investment in Affordable Housing (IAH) Program in 2016 . 3225 Uplands (Ashgrove) has surplus lands that will allow 16 family townhouse and triplex units to be constructed . The existing community is comprised of 114 family units . Current zoning limits new construction to townhomes, duplex, and triplex construction
75 2. CONTEXT
. OCH owns the land . Units will be 3, 4 and 5 bedroom, with 4 – four bedroom barrier-free units as part of the build . Currently in with Site Plan Control . Estimated construction start date is June 2017 . Initial occupancy is estimated to begin in May 2018 . Project completion/final occupancy is August 2018
76 2. CONTEXT - LOCATION
77 2. CONTEXT - LOCATION
78 2. CONTEXT - SITE LAYOUT
79 2. CONTEXT - DESIGN RENDERING
80 3. CONSULTATION
. Both the Portfolio Management Committee and the Board have been consulted throughout the process, and have provided approvals for development and the IAH funding submission for the project . Consultation with the broader community has occurred on two occasions, with some concerns raised, and responses given . Consultation with the Ward Councillor is ongoing . Information has been provided to the Ashgrove Community, and community meetings are currently being scheduled to provide details on the upcoming construction activity . This presentation was received by the Portfolio Management Committee on April 25, 2017
81
4. KEY IMPACTS, BENEFITS & RISKS
. $2.4 million in grant money secured . Addition of 16 new family units, including four barrier-free . Reduced architectural costs by reuse of new, in-house design, Michele Heights townhouse design, and in-house triplex design for the project . Use of existing land with no rezoning requirements . Contributes to strategic goal of portfolio renewal providing additional units . Broader community “not in my backyard” (NIMBY) sentiment has required a higher level of consultation including two community information sessions and one councillor-sponsored session with community leaders 82
5. FINANCIAL IMPACT
. IAH funding is secured for $2.4 million . OCH contributions remain at $2.4-$2.6 million to be funded through an equity contribution (Community Redevelopment Fund) and an affordable mortgage . Construction/cash flow starts in June 2017
83 6. RECOMMENDATION (S)
. That this presentation be received for information by the Board of Directors.
Appendix A: Existing OCH Townhouse Design
84 APPENDIX A: EXISTING OCH TOWNHOUSE DESIGN
85 QUESTIONS
86 PENDING REVIEW
REPORT: OCHC-042/17
PROPERTY SALES PROCESS
TO: BOARD OF DIRECTORS
MEETING DATE: May 18, 2017
Robert MacNeil FROM: Senior Manager Realty Initiatives, Asset Management
PURPOSE: To update the Board on the sales process for disposition of FOR INFORMATION scattered units
STRATEGIC Innovate to meet housing and financial needs OBJECTIVE: Implement revised sales process, obtain bulk approval, and proceed NEXT STEPS: with housing unit sales
1. EXECUTIVE SUMMARY
§ The purpose of this report is to provide an update and discuss the revised sales process/protocols being used for the disposition of scattered units.
2. CONTEXT
§ On June 14, 2012, the Board approved a policy regarding the sale of select/vacant properties to generate capital for creating new housing units. § On November 30, 2015, the Board adopted a 10-year Strategic Plan that called for portfolio renewal through acquisitions, new builds and retrofits, and dispositions. § On March 10, 2016, the Board endorsed creating Terms of Reference for a Tenant Experience Advisory Group (TEAG) to provide advice on the impact and considerations for tenants affected by the Portfolio Management Framework (PMF) including sales and redevelopments. The Board received updates on TEAG’s progress in both September and December of 2016. § On June 23, 2016, the Board approved a target of selling 40+ housing units (inclusive of individual properties with 5 or fewer units) in the 2017 calendar year.
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§ On September 15, 2016, the Board endorsed the Tenant Relocation Approach and Objectives document to support the 2017 sales. § In the past, property sales required individual business cases and were subject to both City and province review/approvals, requiring 3-6 months each. However, in December 2016, provincial legislation passed which delegated authority to the Service Manager (i.e. City of Ottawa). Consequently, the City is now permitting the bulk approval of housing units for sale, which promises to save OCH both time and money. § On January 19, 2017, the Board approved a 2017 Divestiture List. § On February 21, 2017, OCH staff submitted a business case to the City’s Housing Service Manager, for the bulk approval of this 2017 Divestiture List. That business case is now being reviewed and OCH is awaiting approval (anticipated in April 2017). § In 2016, staff reached out to the Ontario Real Estate Association (OREA) who provided us with a list of real estate agents they could objectively recommend. Based on evaluation criteria the list was further refined. From that list OCH interviewed several agents and then engaged two to sell housing units on OCH’s behalf. § In January 2017, given the increased volume of units to be sold, OCH sought additional support (referring to OREA’s short-list again) and interviewed/engaged three more agents. It was felt that a total of five agents would be required for selling 40 to 62 units (includes surplus and carry-over from last year) within the calendar year. § In light of the growing dispositions program, staff drafted a comprehensive agreement (see Appendix A) for execution with the agents. The agreement was drafted to best protect OCH’s interests, mitigate risks, ensure a level playing field, and reward good performance. The agreement is being executed with the agents and serves to clarify things such as: - professional conduct - multiple representation vs. double-ending - arms-length buyer relationships - market analyses, professional advice, and marketing/sales services - offer timing, quality, presentations, and responses - scattered unit awards, type, term, and volume - initial/reduced commission rates - at-will and performance based agreement - format for offers - price reductions - OCH/agent representatives
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REPORT: OCHC-042/17
§ Divestitures are progressing well. For 2017, we have targeted selling at least 40 units, and by April 25, the tenants of 22 of these have already vacated or agreed to relocate. The remaining units are with the relocation team to broker timely vacates/relocations. Once the units are free and clear, then clean-up work will be scheduled, followed by demolition, renovations, appraisals, environmental assessments (if required), and then subsequent assignment to agents for listing/marketing/selling. Staff have been briefed on their respective roles and the process by which units will flow through this process.
3. CONSULTATION
§ This report was received by the Portfolio Management Committee on April 25, 2017
4. KEY IMPACTS, BENEFITS & RISKS
§ Pursuant to the Portfolio Management Framework, housing unit dispositions are a unique opportunity to generate revenue in order to renewal OCH portfolio through reinvestment into replacing, strengthening, or redeveloping properties with new purpose-built homes. § The development of the protocols for both the retention of sales agents and the sales process were developed by adopting practices used widely in the industry by organizations such as public agencies and financial institutions. The protocols promote that homes are sold in a transparent transaction that encourages receipt of maximum market value, while mitigating conflicts of interest, perceived or otherwise. § Limit real estate agent commissions, while rewarding good sales performance with the potential of added listings (i.e. volume business).
§ Manage dispositions through real estate agents, with fiscal prudence, and with stewardship of the portfolio.
§ Manage relocations, being sensitive to tenant rights/needs, while providing a positive relocation experience.
§ An effective disposition strategy is essential to ensuring that OCH can fund its redevelopment activities as part of the broader Portfolio Management Strategy.
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5. FINANCIAL IMPACT
§ In accordance with the previously approved process and 2017 budget: - Relocation allowances of up to $5,000 per household need to be provided, for an estimated total cost of $255,000. - Demolition, repair and renovation work are performed on a unit by unit basis and are pursued only when there is a positive return on the required investment. The costs are recovered upon sale of the unit and are designed to be net positive to OCH. - An appraisal fee of approximately $350 per household is anticipated. - Environmental Site Assessments of $2,292 per building (for 6 buildings) are required, for an estimated total cost of $13,750. - The sale of 40 units is estimated to generate on average $250,000 per unit ($10 million) gross, less sale commissions, unit preparation, required assessments (ESA, appraisals) and legal fees.
6. SUCCESS MEASURES
§ Achievement of divestiture target of 40 units in 2017 § Sound oversight of real estate agents engaged in selling § Successful relocation of tenants in accordance with our Tenant Relocation Approach and Objectives, inclusive of good communications
7. NEXT STEPS
§ Sign agreements (see Appendix B) with five real estate agents § Secure approval from the City for the bulk dispositions § Arrange for tenant relocations and vacating of units § Manage clean-ups, demolition work, and renovation work § Manage appraisals and certain environmental assessments § Assign units to given real estate agents § List units for sale on MLS § Receive offers, negotiate, and close on these
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8. CONCLUSION
§ The adoption of a detailed sales agreement for engagement of the listing agents was positively received. § The agreement further clarifies roles, addresses ambiguities and establishes a consistent and equitable sales process that protects the interest of OCH. § The additional sales resources and improved processes were key deliverables for OCH to meet its 2017 disposition objectives.
9. RECOMMENDATION(S)
§ That this report be received for information by the Board of Directors.
APPENDICES
A. REAL ESTATE AGREEMENT
91 - PENDING REVIEW
REPORT: OCHC-043/17
CARLINGTON COMMUNITY HEALTH HUB PROJECT UPDATE
TO: BOARD OF DIRECTORS
MEETING DATE: May 18, 2017
FROM: Barron Meyerhoffer Director, Planning and Engineering, Asset Management PURPOSE: To update the Board on the Carlington Community Health Hub FOR INFORMATION project STRATEGIC Innovate to meet housing and financial needs OBJECTIVE: NEXT STEPS: Continue Construction
92 1. EXECUTIVE SUMMARY
. Planning for the Carlington Community Health Hub (CCHH) commenced in August 2011
. The project is a partnership between the Carlington Community Health Centre (CCHC) and OCH
. CCHC has secured $4.8 million in funding from the Ministry of Health
. OCH has secured $4.6 million from Investment in Affordable Housing (IAH), and OCH will contribute a further $5.1 million
. Construction of the CCHH began in January 2017, cost estimates and schedule are currently on schedule
93 2. CONTEXT - LOCATION
94 3. CONTEXT - DESIGN
95 3. CONTEXT (CONTINUED) – PROJECT HIGHLIGHTS
. Project will add 42 seniors units to the portfolio
. Units are being constructed over a new health clinic
. CCHC currently provides other services beyond a walk-in clinic including seniors-focused programs
. OCH is acting as the general contractor
. The building is designed to Passive House and WELL standards
96 3. CONTEXT (CONTINUED) - PROGRESS TO DATE
. Site excavation proceeded without issue and all soil conditions were aligned with expectations
. Footings/foundations were poured in early March
. Tendering for future elements of the project, including structural steel, doors, electrical, etc., are ahead of schedule
. Tender pricing has been consistent with cost estimates
. Despite uncooperative weather, the project remains on schedule
97 4. CONSULTATION
. Consultation has been extensive with both the OCH and CCHC Boards, OCH Committees, City Counsellor(s), and the broader community
. Internal consultation continues with stakeholders during the construction phase
. Ongoing consultation with CCHC is required to ensure construction does not interfere with their day-to-day operations
. This presentation was received by the Portfolio Management Committee on April 25, 2017
98
5. KEY IMPACTS, BENEFITS & RISKS
. Project is in line and supports the Portfolio Management Framework
. The projects adds an additional 42 units to the portfolio
. The project aligns with the City and provincial focus of “hubs” and greater efficiencies in delivering multiple services
. The project benefits from a $4.6 million grant from IAH
. The project showcases efficiencies and innovation by building to Passive House and WELL standards
. Although the project is on schedule and under budget at this point, there remains a risk that tenders come in above budget and result in additional costs 99 6. FINANCIAL IMPACT
. There are no direct financial implications associated with this report
. The project is on budget and on schedule
100 7. RECOMMENDATION
. That this presentation be received for information by the Board of Directors.
101 QUESTIONS
102 APPENDICES
A. Current Progress Images
103 A. APPENDIX: CURRENT PROGRESS
104 A. APPENDIX: CURRENT PROGRESS (CONT’D)
105 PENDING REVIEW
REPORT: OCHC-044/17
CAPITAL SPEND UPDATE
TO: BOARD OF DIRECTORS
MEETING DATE: May 18, 2017
Diana Carr Director of Project Implementation FROM: Ven Giannantonio Director of Finance
PURPOSE: Update on capital spending FOR INFORMATION . Innovate to meet housing and financial needs STRATEGIC . OBJECTIVE: Foster an organizational culture of leadership, accountability and continuous improvement Implement, monitor and report quarterly on capital spend NEXT STEPS: throughout 2017
1. EXECUTIVE SUMMARY
. For 2017, $65.7 million was allocated as capital spend: ‒ $20 million for the Capital Works Program. ‒ $8.5 million committed for work from previous years that also included multi-year commitments, such as $1.9 million in elevator modernization, $1.6 million in plumbing system replacements, $1.1 million in mechanical, heating and generator replacement, $900,000 in roofing replacement, and other exterior restoration and revitalization. ‒ $5 million in salary costs related to capital projects. ‒ $16.7 million in other spending that includes fire restoration and the Ontario Fire Code retrofit, replacement of furnace and water hot water tanks, vacant unit turnover, and machinery and equipment including information systems. ‒ $15.5 million in Social Housing Improvement Program (SHIP) and Social Housing Apartment Retrofit Program (SHARP) funding. . $350,000 SHARP and SHIP funding has been expended to March 31, 2017. This represents 2.3% of the 2017 the $15.5 million budgeted for 2017.
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. As at March 31, 2017, 42% of the overall capital budget is committed, in progress, or completed, of which 61% of the planned Capital Works Program projects are committed, in progress, or completed. . The Capital Works Program includes some reallocations from the original plan to accommodate unexpected or higher priorities.
2. CONTEXT
. Appendix A provides an overview on capital spending across all programs to March 31, 2017. Key information includes spending by program and category.
3. CONSULTATION
. External engineering consultants are engaged to provide guidance on key building systems including elevators, roofs and safety systems and to inform the Capital Works Program. . The remaining capital budget was prepared in consultation with Tenant Services with input from both an operational and tenant perspective. . All departments identified non-project capital requirements during the budget development. . The Finance and Audit Committee received this report on May 9, 2017.
4. KEY IMPACTS, BENEFITS & RISKS
. The implementation of the Capital Works Program ensures improved condition of the housing stock and reduces deferred maintenance. . Improvements to the housing stock will also improve the resident living conditions and the tenant experience at OCH. . The execution of the Capital Works Program is to some degree, weather-dependent. As such, there is a risk that adverse weather conditions may impede the contractor’s ability to undertake work in the timeframe identified. . Salary expenses related to the delivery of the Capital Works Program are tied directly to the program. . Capital projects and investment lead to the increased useful life of an asset. Technology and/or system enhancements aim at improved functionality and/or support business needs and management decisions.
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REPORT: OCHC-044/17
5. FINANCIAL IMPACT
. Spending for the Capital Works Program is funded from the capital reserves. . For 2017, $65.7 million has been allocated; of which $28.5 million is for new and ongoing capital works projects. . As at March 31, 2017, 42% of the overall capital budget is committed, in progress, or completed, of which 61% of the planned Capital Works Program projects are committed, in progress, or completed.
6. CONCLUSION
. Reprioritization is ongoing, as new information and new higher priorities are identified. . At this time, capital spend is on target and it is anticipated that the capital spend will be expended or committed by year end.
7. RECOMMENDATION
. That this report be received by the Board of Directors for information.
APPENDICES
A. 2017 CAPITAL FUNDING – USE OF FUNDS
108 FOR INFORMATION
REPORT: OCHC-044/17
APPENDIX A
2017 Capital Funding - Use of Funds Period ended Mar 31, 2017 Board-Approved Re-Prioritized % % Budget (A) Budget (B) Contracted CY (of B) YTD (of B) $ $ $ $ Non-Project Capital Works Expenditure Non-Project & Unforeseen Tenant Services Non-project 8,083,540 8,083,540 NA 0% 1,562,357 19% Asset Management Non-project 1,670,000 1,670,000 237,886 14% 228,850 14% Unforeseen 250,000 250,000 66,611 27%- 28,141 -11% Ontario Fire Code Retrofit 3,000,000 3,000,000 1,203,335 40% 1,009,486 34% Community Capital 129,800 129,800 NA 0%- 3,536 -3% Restoration 1,300,000 1,300,000 276,448 21%- 69,294 -5% Playground Replacement Initiative 576,000 576,000 207,896 36% 39,440 7% Tools & Equipment 314,900 314,900 NA 0% 20,568 7% Capital Overhead 5,919,020 5,919,020 NA 0% 1,099,213 19% Contingency 465,000 465,000 NA 0% 43,086 9% Total Non-Project Capital Works Expenditure 21,708,260 21,708,260 1,992,176 9% 3,902,028 18%
2017 Capital Works Program Expenditure Capital Program Roofing Program 2,250,000 3,000,000 3,038,240 101% 22,477 1% Paving, Tree and Step Repair/Replacement Program 600,000 400,000 259,035 65% - 0% HVAC/Electrical Replacement Program 750,000 750,000 227,106 30% 17,955 2% Generator Replacement Program 500,000 500,000 132,197 26% 11,001 2% Elevator Upgrade Program 2,500,000 2,000,000 - 0% - 0% Furnace Program 400,000 400,000 49,470 12% - 0% Fire Safety System Renewal Program 1,000,000 2,300,000 139,651 6% - 0% Cladding and Restoration/Renewal Program 3,000,000 3,000,000 205,945 7% 5,536 0% Backflow Preventor Installation Program - 500,000 58,707 12% - 0% Major Projects Bank St - Balcony Repair 500,000 - 30,962 0% - 100% Clementine Blvd - Balcony Repair 600,000 - - 0% - 100% Charlotte St - Balcony Repair 1,000,000 1,000,000 822,068 82% - 0% Bruyere/ Belanger - Window & Door Replacement 750,000 750,000 - 0% - 0% Michele Heights - Regrading (Water Management) 600,000 - - 0% - 100% Other District Based Priorities 2,500,000 2,350,000 710,729 30% 82,373 4% Contigency Allowance - 2017 Capital 1,750,000 1,750,000 - 0% - 0% Contigency Allowance - SHIP & SHARP Program Overages 1,300,000 1,300,000 - 0% - 0% Total 2017 Capital Works Program Expenditure 20,000,000 20,000,000 5,674,111 28% 139,341 1%
2014-2016 Capital Works Program Expenditure 2014 Capital Works Carry Over NA NA 230,998 36,087 2015 Capital Works Carry Over NA NA 2,811,115 - 509,441 2016 Capital Works Carry Over NA NA 8,631,549 1,459,982 Total 2014-2016 Capital Works Program Expenditure 8,500,000 8,500,000 11,673,661 137% 986,628 12%
Total Capital Works Program Expenditure 28,500,000 28,500,000 17,347,772 61% 1,125,969 4%
2016 SHARP (11.6M) Total SHARP 8,100,000 8,100,000 4,646,148 57% 340,470 4%
2017 SHIP (8.7M) Total SHIP 7,380,000 7,380,000 3,355,453 45% 10,462 0%
Total Capital Expenditure 109 65,688,260 65,688,260 27,341,549 42% 5,378,929 8%
PENDING REVIEW
REPORT: OCHC-045/17
CAPITAL WORKS PROGRAM – UPDATE
TO: BOARD OF DIRECTORS
MEETING DATE: May 18, 2017
Diana Carr FROM: Director of Project Implementation
PURPOSE: Update the Board on 2016 and 2017 Capital Works Program FOR INFORMATION spending Innovate to meet housing and financial needs STRATEGIC OBJECTIVE: Foster an organizational culture of leadership, accountability and continuous improvement Implement, monitor and report to the Portfolio Management NEXT STEPS: Committee quarterly on Capital Works Program spend throughout 2017 and update the Board periodically
1. EXECUTIVE SUMMARY
. For 2016, $29.7 million was allocated to the Capital Works Program: – $20 million for the 2016 Capital Works Program; – $9.7 million related to the 2015 carry-forward, which included over $4 million in elevator modernization, exterior restoration and revitalization; As at December 31, 2016, all of the $29.7 million was committed, and a total of $8.5 million (28.6% of the $29.7 million budget) is to be delivered in 2017. . OCH was awarded funding under the Social Housing Improvement Program (SHIP) and Social Housing Apartment Retrofit Program (SHARP), totalling $20.3 million. Both programs are multi-year programs: - SHARP-funded projects are to be complete by March 31, 2018; - SHIP-funded projects are to be complete by December 16, 2018. As at March 31, 2017, just over $8.0 million of the $20.3 million had been committed. Spending to December 31, 2016 was $1.18 million. . For 2017, $28.5 million has been allocated to the Capital Works Program: - $20 million for the 2017 Capital Works Program; - $8.5 million related to work committed but not completed in prior years.
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2. CONTEXT
. Appendix A provides an overview of the 2016 Capital Works Program spending across all programs (including SHIP and SHARP programs, as well as base capital) to December 31, 2016. . Appendix B provides an overview of the 2017 Capital Works Program spending across all programs (including SHIP and SHARP programs, as well as base capital) to March 31, 2017. . Reprioritization of the Capital Works Program is ongoing, as new information and new higher priorities are identified. Appendix B displays the original budget assigned to each program, as approved by the Board in November 2016, as well as the revised budget assigned.
3. CONSULTATION
. The Capital Works Program was developed in consultation with internal and external stakeholders. Tenant Services and Community Development provided input from both an operational and tenant perspective. . External engineering consultants were engaged to provide guidance on key building systems, such as elevators, emergency power supply, fire and life safety systems, and roofs. Said guidance served to aid in prioritizing competing priorities as well as to inform the Capital Works Program. . The Capital Works Program reflects changes from the original plan to accommodate unexpected or higher priorities. . This report was received by the Portfolio Management Committee on April 25, 2017.
4. KEY IMPACTS, BENEFITS & RISKS
. The implementation of the Capital Works Program ensures improved condition of the housing stock, reduces deferred maintenance, and increases the useful life of an asset. . Improvements to the housing stock will also improve the resident living conditions and the tenant experience at OCH. . The successful execution of the Capital Works Program is largely dependent on fair weather, manufacturing / delivery timelines, and access to the work area. Conditions such as adverse weather conditions, assessment and management of workers’ (and tenants’) safety (e.g. the need to maintain separate access and working areas for multiple contractors), and long lead times for equipment or materials, may all impede the contractors’ ability to undertake work in the current fiscal year.
5. FINANCIAL IMPACT
. Spending for the $20 million Capital Works Program was funded from the capital reserves. . Most of the $20.3 million in SHIP and SHARP work will be carried out in 2017.
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6. CONCLUSION
. As at December 31, 2016, 80% of the total 2016 capital budget was expended. . The 2016 Capital Works Program carried forward $8.5 million into 2017 and was fully awarded. . Over 60% of the 2017 Capital Works Program was awarded or completed by end of Quarter 1, 2017. . Reprioritization of the 2017 Capital Works Program is ongoing.
7. RECOMMENDATION
. That this report be received for information by the Board of Directors.
APPENDICES
A. 2016 CAPITAL FUNDING – USE OF FUNDS
B. 2017 CAPITAL FUNDING – USE OF FUNDS
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APPENDIX A – 2016 CAPITAL FUNDING – USE OF FUNDS
2016 Capital Funding - Use of Funds Period ended Dec 31, 2016 Budget Contracted CY % YTD % $ $ $ Non-Project Capital Works Expenditure Non-Project & Unforeseen Tenant Services Non-project 7,993,550 NA 0% 8,206,920 103% Asset Management Non-project 1,990,000 1,589,439 80% 1,579,411 79% Unforeseen 250,000 545,228 218% 515,199 206% Head Office Retrofits 100,000 18,277 18% 14,761 15% Community Capital 125,000 103,164 83% 103,164 83% Restoration 1,300,000 1,171,727 90% 1,164,063 90% Playground Replacement Initiative 1,276,600 491,364 38% 327,996 26% Tools & Equipment 305,300 NA 0% 128,071 42% Hayley Court Rebuild 300,000 313,956 105% 313,956 105% Capital Overhead 5,852,600 NA 0% 4,326,510 74% Contingency 390,750 NA 0% 287,521 74% Total Non-Project Capital Works Expenditure 19,883,800 4,233,155 21% 16,967,572 85%
2016 Capital Works Program Expenditure Capital Program Roofing Program 2,000,000 3,031,294 152% 2,259,356 113% Asphalt Program 600,000 586,901 98% 456,098 76% Mechanical System Replacement Program 1,000,000 877,724 88% 327,721 33% Generator Replacement Program 1,000,000 633,244 63% 466,974 47% Elevator Upgrade Program 1,500,000 1,692,015 113% 113,929 8% Furnace Program 500,000 279,009 56% 279,009 56% Fire Safety System Renewal Program 1,250,000 1,465,259 117% 547,559 44% Major Projects 380 Murray St - Revitalization Phase 2 2,300,000 432 0% 432 0% Winthrop Ct - Site Regrading 750,000 874,376 117% 42,423 6% Clementine - Balcony Repair 600,000 - 0% - 0% Lebreton 3 - Regrading and Fencing 600,000 322,452 54% 317,087 53% 800 St. Laurent Blvd. - Balcony Repair 500,000 321,205 64% 321,205 64% Confederation Ct - Fence and Walkway Repair 500,000 667,775 134% 496,383 99% Richelieu Ct - Phase 1, Regrading and Cladding 400,000 21,319 5% 12,893 3% 1909 Russell Rd - Window and Door Replacement Phase 2 1,500,000 162,584 11% 117,988 8% Overbrook Community - Canopy Structures 500,000 46,175 9% 46,175 9% Other District Based Priorities 3,000,000 4,130,445 138% 3,100,935 103% Contingency Allowance 1,500,000 76,633 5% 72,761 5% 251 Donald - Plumbing System Replacement - 1,581,081 0% 54,289 100% Total 2016 Capital Works Program Expenditure 20,000,000 16,769,923 84% 9,033,216 45%
2014-2015 Capital Works Program Expenditure 2014 Capital Works Carry Over NA 1,923,726 1,468,471 2015 Capital Works Carry Over NA 13,299,021 10,952,562 Total 2014-2015 Capital Works Program Expenditure 9,700,000 15,222,747 157% 12,421,033 128%
Total Capital Works Program Expenditure 29,700,000 31,992,670 108% 21,454,249 72%
2016 SHARP (11.6M) Total SHARP - 2,632,000 0% 1,174,969 100%
2017 SHIP (8.7M) Total SHIP - 368,941 0% 7,352 100%
Total Capital Expenditure 49,583,800 38,857,824 78% 39,604,141 80%
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APPENDIX B – 2017 CAPITAL FUNDING – USE OF FUNDS 2017 Capital Funding - Use of Funds Period ended Mar 31, 2017 Board-Approved Re-Prioritized % % Budget (A) Budget (B) Contracted CY (of B) YTD (of B) $ $ $ $ 2017 Capital Works Program Expenditure Capital Program Roofing Program 2,250,000 3,000,000 3,038,240 101% 22,477 1% Paving, Tree and Step Repair/Replacement Program 600,000 400,000 259,035 65% - 0% HVAC/Electrical Replacement Program 750,000 750,000 227,106 30% 17,955 2% Generator Replacement Program 500,000 500,000 132,197 26% 11,001 2% Elevator Upgrade Program 2,500,000 2,000,000 - 0% - 0% Furnace Program 400,000 400,000 49,470 12% - 0% Fire Safety System Renewal Program 1,000,000 2,300,000 139,651 6% - 0% Cladding and Restoration/Renewal Program 3,000,000 3,000,000 205,945 7% 5,536 0% Backflow Preventor Installation Program - 500,000 58,707 12% - 0% Major Projects Bank St - Balcony Repair 500,000 - 30,962 0% - 100% Clementine Blvd - Balcony Repair 600,000 - - 0% - 100% Charlotte St - Balcony Repair 1,000,000 1,000,000 822,068 82% - 0% Bruyere/ Belanger - Window & Door Replacement 750,000 750,000 - 0% - 0% Michele Heights - Regrading (Water Management) 600,000 - - 0% - 100% Other District Based Priorities 2,500,000 2,350,000 710,729 30% 82,373 4% Contigency Allowance - 2017 Capital 1,750,000 1,750,000 - 0% - 0% Contigency Allowance - SHIP & SHARP Program Overages 1,300,000 1,300,000 - 0% - 0% Total 2017 Capital Works Program Expenditure 20,000,000 20,000,000 5,674,111 28% 139,341 1%
2014-2016 Capital Works Program Expenditure 2014 Capital Works Carry Over NA NA 230,998 36,087 2015 Capital Works Carry Over NA NA 2,811,115 - 509,441 2016 Capital Works Carry Over NA NA 8,631,549 1,459,982 Total 2014-2016 Capital Works Program Expenditure 8,500,000 8,500,000 11,673,661 137% 986,628 12%
Total Capital Works Program Expenditure 28,500,000 28,500,000 17,347,772 61% 1,125,969 4%
2016 SHARP (11.6M) Total SHARP 8,100,000 8,100,000 4,646,148 57% 340,470 4%
2017 SHIP (8.7M) Total SHIP 7,380,000 7,380,000 3,355,453 45% 10,462 0%
Total Planned Capital Expenditure 43,980,000 43,980,000 25,349,373 58% 1,476,900 3%
Notes The values for Contracted CY, YTD, and Projected related to the 380 Murray Revitalization & Window/Door Replacement at 1909 Russell are included in the base year (2015). So despite having a separate budget for Phase 2 in the 2016 CW budget all other associated figures are shown in the 2015 Carry Over line.
114 FOR INFORMATION
REPORT: OCHC-046/17
DECLARATION ON STATUTORY REMITTANCES
TO: BOARD OF DIRECTORS
MEETING DATE: May 18, 2017
Nathalie Fauvel FROM: Vice President of Finance and Chief Financial Officer
PURPOSE: Update the Board of Directors on Statutory Remittances FOR INFORMATION
STRATEGIC Foster an organizational culture of leadership, accountability and OBJECTIVE: continuous improvement
NEXT STEPS:
1. EXECUTIVE SUMMARY
To mitigate the personal liability for unpaid employee wages, vacation pay and source deductions (such as income tax), and other taxes, OCH issues a quarterly certificate signed by the Chief Financial Officer (CFO) verifying that the Corporation has met all statutory remittance obligations.
The certificate attached to this report covers the period January 1, 2017 to March 31, 2017.
2. CONTEXT
With statutory liability from several separate pieces of legislation in Canada and Ontario, as well as civil liability, Directors and Corporate Officers face the potential threat of personal liability.
While there is no substitute for the proper exercise of good business judgment, there are structural and procedural steps that can be taken by the Boards of Directors and Corporations to minimize and appropriately manage actual and potential liabilities of Directors and Officers.
Corporations should ensure proper systems are in place for the payment of wages and statutory remittances, and for reporting that remittances are paid in full to avoid any liability.
115 FOR INFORMATION
REPORT: OCHC-046/17
3. CONSULTATION
This report and the Certification on Remittances have been discussed and supported by the Chief Executive Officer and the Chief Financial Officer.
The Finance and Audit Committee received this report on May 9, 2017.
4. KEY IMPACTS, BENEFITS & RISKS
The quarterly certification will mitigate Directors’ and Officers’ liability with respect to statutory remittances.
5. FINANCIAL IMPACT
There are no direct financial implications associated with this report.
6. CONCLUSION
The quarterly sign off by the Chief Financial Officer on statutory remittances will enhance Board governance and oversight and will mitigate potential liability for non-compliance on statutory reporting for both Directors and Officers of the Corporation.
7. RECOMMENDATION
That the Board of Directors receive this report for information.
APPENDICES
A. STATUTORY REMITTANCE CERTIFICATE – JANUARY 1, 2017 TO MARCH 31, 2017.
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APPENDIX A
STATUTORY REMITTANCE CERTIFICATE
FOR PERIOD COVERING January 1, 2017 – March 31, 2017
TO: Mathieu Fleury, Chair, Ottawa Community Housing Board of Directors Dan Doré, Treasurer, Ottawa Community Housing Board of Directors
FROM: Nathalie Fauvel, Vice President, Finance and Chief Financial Officer Ottawa Community Housing Corporation
DATE: April 10, 2017
I certify that:
1. I have made appropriate inquiries and investigations with respect to the matters referenced in this Certificate.
2. I confirm that, for the financial quarter ending (March 31, 2017), Ottawa Community Housing Corporation has: a) deducted and remitted all amounts required under law relating to its employees, including under the Income Tax Act, the Canada Pension Plan, the Employment Insurance Act, OMERS Act under section 2a, and the Employer Health Tax Act; and, b) collected and remitted to the proper federal and provincial authorities, respectively, all taxes required to be collected and remitted during such period pursuant to the Excise Tax Act and the Retail Sales Tax Act.
______Nathalie Fauvel Vice President, Finance and Chief Financial Officer
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PENDING REVIEW
REPORT: OCHC-047/17
CEO OPERATIONAL REPORT
TO: BOARD OF DIRECTORS
MEETING DATE: May 18, 2017
FROM: Stéphane Giguère Chief Executive Officer
PURPOSE: To update the Board of Directors on current key operational FOR INFORMATION matters
STRATEGIC To foster an organizational culture of leadership, accountability and OBJECTIVE: continuous improvement
NEXT STEPS:
1. CHIEF EXECUTIVE OFFICER
. Youth Futures held a successful2017 launch event at Borden Ladner Gervais LLP, I was pleased to join community partners who attended to support this event. . OCH provided a response to the City’s Special Liaison on Housing and Homelessness, Deputy Mayor Mark Taylor, whose mandate is to break down silos and investigate what can be done to accelerate the City’s approach to improving housing in Ottawa. . The OCH insurance policy has been reviewed, and OCH has received a retroactive credit of $87K on our premium, based on our no-smoking buildings. . OCH was positively featured in the Alliance to End Homelessness’ annual report, which highlighted the need for local stakeholders to align their efforts. . The National Housing Strategy was discussed extensively at the Canadian Housing Renewal Association National Congress which I attended, and offered preliminary directions on roles and responsibilities of the governments and providers. . I met with Wendy Hayhurst from New South Wales Community Housing Federation of Australia to compare best practices related to housing and tenancy regulations and asset management. . I had a meeting with Ian Ferris of the Ottawa Chamber of Commerce to discuss increasing OCH participation and visibility among their membership.
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I toured the Carlington Community Health Hub (CCHH) with MPP Bob Chiarelli and Cameron MacLeod, Executive Director of CCHH.
2. FINANCE
. Year-end activities completed, including the financial audit results which were shared with the Finance and Audit Committee and being presented to The Board of Directors for approval. Unqualified opinion. . Procurement activities for Capital work and seasonal maintenance progressing well. . Procurement procedures approved by the Board in November are in the final stages of development. . Electronic Funds Transfer (EFT) implemented. . Procurement card project underway. . Remote deposit capability implemented. . Standards and procedures of the Travel and Hospitality Expense Policy implemented – automation of pre-approval process underway. . Fleet management tool being implemented over Q2. . Contract module activation in ABW being assessed.
3. TENANT SERVICES
. The Tenant Experience Advisory Group (TEAG) held its 4th meeting on March 27th where committee members were introduced to a concrete case scenario. . The integrity policy launched on April 6th with inquiries relating to contractors and staff available via the website, by telephone or in person. Tenant related inquiries will launch on June 6th. As of May 1st, no inquiries were received. . Building cleanliness audits were completed at the end of April. This is the first assessment under the new building cleaning contract and as such results of the audit will be key to setting performance expectations. Meetings with contractors are anticipated throughout the month of June.
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REPORT: OCHC-047/17
. The new structure for Tenant Services based on functional groups was put in place on April 20th and meetings have already been held with all groups to discuss vision long-range planning. The functional teams are:
o Tenancy Administration under the direction of Denise Dupuy. This includes tenant leases, rent calculations, renting of homes, tenant behavioural issues, tenant relocations and other key roles within the housing administration purview. o Demand Maintenance and Turnover Services under the direction of Shaun Simms. This includes OCH maintenance services delivered as a result of tenant calls to the call centre. This portfolio includes capital projects such as retrofitting homes as they become vacant and minor work in our buildings. o Planned Maintenance under the direction of Denis Michel. This includes the beautification, property improvements and preventive maintenance such as fire life systems and the unit assessment program. In addition, all contract management functions such as snow removal, landscaping, building cleanliness fall under this purview. o The Director of Legal and Special Projects was established to review appeals, Landlord Tenant Board outcomes to determine impacts at an aggregate level to revisit policy. o The Director of Support Services which includes the call centre, after hours services and the integrated pest management team remain status quo.
4. HUMAN RESOURCES
. OCH welcomed 51 students on May 3rd. The majority of students will work in OCH communities performing landscape and maintenance work. A smaller number work in OCH offices in both front line and back office functions. So far, OCH has been approved for $93,007 funding from the federal Canada Summer Jobs program. . New hires (22) and internal promotions (36) took place so far in 2017 to replace employees who retired and to fill temporary vacancies related to parental leave, illness or short-term work needs. . In April, through the support of KFI Consulting, the leadership team met to review and assess OCHs current and desired future culture. A multi-year plan to address the recommendations arising from this review is in the works.
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REPORT: OCHC-047/17
. Work continues with Mercer Consulting to develop a job evaluation tool for management and union-exempt positions. In order to be prepared for the evaluation of jobs, the focus of the last few months has been on refreshing job descriptions. A draft job evaluation tool has also been prepared and will be validated through benchmark testing. The formal evaluation will be completed in Q3.
5. ASSET MANAGEMENT
. Capital works program delivery proceeding as per schedule and budget. . Majority of SHIP and SHARP funded projects have been designed and committed well in advance of program due dates. . Successful meeting held with Ottawa Fire Services with respect to OCH’s Fire Life Safety System program. . Construction of Carlington Health Hub proceeding on schedule and budget.
6. COMMUNITY DEVELOPMENT AND SAFETY
. The first meeting of Place-Based Mental Health and Addiction Initiatives has been held with the management of OCH, Salus, Centretown Community Health Centre (CCHC), Canadian Mental Health Association and the Royal Ottawa to discuss a vulnerable tenant support pilot project at 415 MacLaren and 125 McLeod. . Parking Enforcement Pilot staff completed their training and started on the road on April 16. . CSS has begun discussions with OPS on data exchange in order to allow our organizations’ Geographic Information System (GIS) mapping programs to share information. . OCH has signed a partnership agreement with the Central Ottawa HealthLinks. . Discussions have begun with the Centre for Social Enterprise Development (CSED) on conducting a social procurement audit of OCH. . The Emergency Incident Timeline (EIT) process is being reviewed to ensure that the needed information is provided in a timely and accurate manner. On March 24, a ceremony was held to celebrate the opening of the new kitchen at Winthrop Court Community House. This renovation was funded by PCL Construction, supported by the United Way. . On April 18, a committee of three tenants and three staff selected the winning 2017 Community Capital Fund (CCF) projects. . The Chair, CEO and Vice President of Community Development met with the new Executive Director of Options Bytown, Catharine Vandelinde. . A crisis line reference card has been created for frontline staff who might meet a tenant in the community who is in crisis or have a family member in crisis. This initiative came from a suggestion made by OCH staff who attended the Mental Health First Aid course.
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7. ORGANIZATIONAL EFFECTIVENESS
. Successful Northgate upgrade . Successful launch of OCH Connect intranet site . Accessing new innovation software from electronic documents and records management project supplier, Helux; enabling OCH to benefit from value added services and functionality . Board and committee portal available to provide access to Q-BIT corporate measures and risk rating, Board and Committee reports and corporate policies. . LEAN framework and initiatives identified, including LEAN methodology review for property and unit access process and key management continues . Board and committee strategy completed; draft report highlighted discussions to be circulated . New Committee member orientation completed and recruitment of additional Finance and Audit committee member completed . Integrity portal for employees and contractors launched, tenant launch on June 6th
8. RECOMMENDATION
. That the Board of Directors receive this report for information.
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Ottawa Community Housing Corporation Tenant Advisory Group Meeting Draft Minutes
Foster Farm Recreation Centre 1065 Ramsey Cr. Date: November 15, 2016 Ottawa, Ontario Meeting Start Time: 5:30 p.m.
TAG Members: Ms. Carole Ladouceur, Ms. Debra Barr, Mr. Ron McCooeye, Mr. Patrick Cassidy, Mr. Paul-Émile Fortin
OCH Staff: Mr. Brian Gilligan, Executive Director, Community Development; Gail Henri, Community Information Officer; Lynne Williams, Coordinator, Community Development, Nicole Bates, Business Analyst, Eva Mathieu, Conservation and Sustainability Facilitator
Guests: Councillor Mathieu Fleury, Mr. Chris Shute, DBC Vice-Chair (South), Penny Knox DBC Vice-Chair (West), Mr. Danny Roberge, DBC Vice-Chair (East)
Absent: Ms. Sandra Pilote, Ms. Natalie Lafleur
AGENDA
1. Opening and Welcome 2. Review and Approval of Agenda 3. Review and Approval of Minutes of September 13, 2016 4. Review of the Board Package for November 17th 5. Changes to the By-Laws – Impact on TAG/DBC Presenter: Kelly Hastings 6. Conservation and Sustainability Facilitator Presenter: Cliff Youdale and Eva Mathieu 7. Community Development Dates for 2017, e.g. TAG, DBCs, Community Capital Fund Presenter: Brian Gilligan 8. Communication Update Presenter: Gail Henri 9. Information and Planning Items • Agenda for Spring 2017 DBC • Tenant Appreciation Forum – October 1st Debrief • Agenda and Location for January 2017 TAG Meeting
10. Next Meeting: January 17th, 2017
123 1. Opening and Welcome
Ms. Ladouceur, Chair of the Tenant Advisory Group (TAG) welcomed the members and guests.
TAG members were saddened to hear of the passing of Joy Tomkinson. She was a very active member and well-liked by all. She will be missed dearly.
2. Review and Approval of Agenda
Moved by: Mr. Cassidy Seconded by: Mr. Fortin
That the following items under Item 9, Information and Planning Items be added to the agenda:
- Security Update - Parking Update
Carried, as amended
3. Review and Approval of Minutes of September 13, 2016
Moved by: Mr. McCooeye Seconded by: Mr. Cassidy
That the Minutes of the September 13, 2016 Tenant Advisory Group meeting be approved as written.
Carried
4. Review of the Board Package for November 17, 2016
The Board package was discussed.
2017 Capital Project Budget: Clarification was provided to distinguish between what is included in the Capital budget and what is listed for the Social Housing Apartment Retrofit Program (SHARP).
124 5. Changes to the By-Laws – Impact on TAG/DBC
Ms. Hastings gave a presentation on the proposed changes to OCH’s by-laws noting the recommendation to remove references to the Tenant Advisory Group and the District Based Committees from the by-laws. This was explained as an unnecessary detail given that no other committee associated with the Board is described. The only reference to TAG that will remain will be in the form of the TAG Chair’s seat on the Board. This change will be offset by the new terms of reference for both TAG and the DBCs and the development of a Community Engagement Policy which will come before the Board next year.
Members of the Tenant Advisory Group were divided in their opinion on this proposed change. Some felt that the role of TAG would be minimized if mention of it was removed from the by-laws. Others felt that this was a clerical issue and would not impact the work of TAG.
Members can provide comments to Ms. Ladouceur prior to Thursday’s November 17th Board meeting.
6. Conservation and Sustainability Facilitator
Ms. Mathieu provided an update on the waste management pilot taking place in twelve OCH communities, and the approaches that are in place. Eva spoke of the challenges of changing behaviour and the need to take an educational and longer term approach.
Following an inquiry, Ms. Mathieu noted that some capital costs are incurred, such as the cost of installing the waste pads and fencing and snow clearing.
7. Community Development Dates for 2017, e.g. TAG, DBCs, Community Capital Fund
The 2017 DBC dates and location are being finalized.
An update on the 2017 Community Capital Funding project will be provided at the upcoming DBC meetings.
8. Communication Update
8.1 Internet Package
Ms. Henri shared with the group that OCH negotiated low cost internet access for tenants. Details will be included in the upcoming Tenant Newsletter and on the OCH website.
8.2 TAG Brochure
The new TAG brochure will be available at the Winter DBCs that start in November and then will be available at the District offices.
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8.3 2017 OCH Calendars
The OCH calendars will be distributed before year end.
9. Information and Planning Items
9.1 Agenda for Spring 2017 DBC
Discussion on tulip bulbs will be added to the agenda.
9.2 Tenant Appreciation Forum – October 1st Debrief
TAG members provided very positive feedback including: - event very well organized; greeting, seating, interaction - well attended - easy access, new modern - venue and food were very good at the Wabano Centre - organizational tour was informative - enjoyed the ice breaker theatre group – good tenant participation - emphasis on appreciation: tenants felt appreciated - TAG Award: Francine Vachon was surprised and very pleased to have won
10. Security Update
Following an enquiry, the Call Centre developed a script for multiple calls from the same community reporting the same incident.
Nathan Hoedeman, Director of Community Safety Services, will be invited to attend the January TAG meeting to provide an update on the role of Community Safety Services.
11. Parking Update: Brian Gilligan briefed TAG members on the planned parking enforcement pilot which will begin in 2017.
The City has agreed that OCH can keep 50% of revenue generated from parking fines. A portion of the money generated will be used to cover the salaries of the parking enforcement staff and the required signage.
12. Next Meeting: The next TAG meeting is scheduled for Tuesday, January 17, 2017 at 5:30 p.m. 39 Auriga Drive, Boardroom
Agenda Items - Tankless Hot Water heaters - Community Safety Services Update
Meeting was adjourned at 7:50 p.m. 126 127 128