Board Members: AGENDA LONDON & MIDDLESEX HOUSING ... · 12) Report on In Camera Matters S. Quigley...

Board Members:

Sean Quigley, Board Chair

Anna-Marie Evans, Director

Larry Ducharme, Director

Marci Allen-Easton, Vice Chair

Anna Hopkins Director & City of London Councilor

Vance Blackmore, Director & Mayor Southwest Middlesex

Deb Peckham, Director

AGENDA

LONDON & MIDDLESEX HOUSING CORPORATION (LMHC)

Board of Directors Meeting

Corporate Boardroom 1299 Oxford Street East, Unit 5C5

London, Ontario

Thursday, October 25, 2018

4:30 P.M. – 6:30 P.M

Regrets R.S.V.P by October 19, 2018

To Laura Palmer at 519-434-2765 ext. 241

or email [email protected]

mailto:[email protected]

LMHC Board Meeting Agenda - October 25, 2018 of 2

Item Lead Time

1) Board Only Session S. Quigley 4:30

2) Call to Order S. Quigley 4:40

3) Recognition of Indigenous Peoples and Lands S. Quigley 4:40

4) Completion and Acceptance of Agenda S. Quigley 4:45

5) Disclosures of Interest S. Quigley 4:45

6) Approval of Minutes Previous Meeting S. Quigley 4:50

Enclosure: Staff Update Presentation

7) Delegations

a) Safe Consumption Site Business Case presented by S.

Patterson

4:55

8) Communications

a) KPMG’s Service Review of the City of London J. Browne 5:20

b) Confirmation from City of London regarding Board

Member Resignation

J. Browne 5:25

9) Reports and Business

a) Update from the Chair S. Quigley 5:30

b) Finance & Audit Committee Report of October 17, 2018

Enclosures:

Staff Report 2018-30: HSC Insurance Program

Staff Report 2018-31: Adjusted June 2018 Capital Works

Report

L. Ducharme 5:35

c) Tenant Engagement Strategy Presentation S.Campbell 5:45

d) Southdale Healthzone Verbal Update

Enclosure:

Staff Report 2018-23: Healthzone Clinic at Southdale

J. Browne 5:55

10) New Business / Enquires S. Quigley 6:05

11) In Camera Matters

a) Board Meeting Minutes of September 29, 2018 S. Quigley 6:10

b) A matter relating to an identifiable building that would be

subject to confidential matter that may be subject to legal

advice and privilege.

S.Quigley 6:15

12) Report on In Camera Matters S. Quigley 6:25

13) Date of Next Meeting

The next Board Meeting is scheduled for Thursday, November

22, 2018

S. Quigley

14) Adjournment S. Quigley 6:30

15) Board Only Session (if required)

https://lmhc.sharepoint.com/:w:/r/Board/Shared%20Documents/Board%20Meetings/Board%20Packages/2018/10%20October/6AA%20Board%20Meeting%20Minutes%20Sep%2027-CEO%20Approved.docx?d=w57eb02c28d944af595b6934a12ae3885&csf=1&e=u65ZEZ

https://lmhc.sharepoint.com/:p:/r/Board/Shared%20Documents/Board%20Meetings/Board%20Packages/2018/10%20October/6A%20Sept%20Update%20Presentation%20by%20SLT%20Sept%202018%20(002).pptx?d=w13b99772ca2641f0aea00483577d2a47&csf=1&e=z9hhdw

https://lmhc.sharepoint.com/:b:/r/Board/Shared%20Documents/Board%20Meetings/Board%20Packages/2018/10%20October/8A%20City%20of%20London%20SMT%20Service%20Review%20Presentation%20-%20Operational%20Leads.pdf?csf=1&e=Uatgyw

https://lmhc.sharepoint.com/:b:/r/Board/Shared%20Documents/Board%20Meetings/Board%20Packages/2018/10%20October/8B%20City%20of%20London%20Board%20Resignation.pdf?csf=1&e=Kkhjzl

https://lmhc.sharepoint.com/:b:/r/Board/Shared%20Documents/Board%20Meetings/Board%20Packages/2018/10%20October/8B%20City%20of%20London%20Board%20Resignation.pdf?csf=1&e=Kkhjzl

https://lmhc.sharepoint.com/:w:/r/Board/Shared%20Documents/Board%20Meetings/Board%20Packages/2018/10%20October/9B0%20Finance%20Committee%20Report%2017%20Oct%202018.docx?d=w9b66fa0fde1c4c618c456761876b1b6b&csf=1&e=QCtPz8

https://lmhc.sharepoint.com/:b:/r/Board/Shared%20Documents/Board%20Meetings/Board%20Packages/2018/10%20October/9B1%20Staff%20Report%202018-30%20HSC%20Insurance%20Program.pdf?csf=1&e=883cv1

https://lmhc.sharepoint.com/:b:/r/Board/Shared%20Documents/Board%20Meetings/Board%20Packages/2018/10%20October/9B2%20Staff%20Report%202018%2031%20Capital%20Reporting%20Summary.pdf?csf=1&e=aczAnE

https://lmhc.sharepoint.com/:b:/r/Board/Shared%20Documents/Board%20Meetings/Board%20Packages/2018/10%20October/9B2%20Staff%20Report%202018%2031%20Capital%20Reporting%20Summary.pdf?csf=1&e=aczAnE

https://lmhc.sharepoint.com/:b:/r/Board/Shared%20Documents/Board%20Meetings/Board%20Packages/2018/10%20October/9D%20staff%20Report%202018-23%20Healthzone%20Clinic%20at%20Southdale.pdf?csf=1&e=d8zGze

LMHC Board Meeting Page 1 of 4 September 27, 2018

BOARD OF DIRECTORS MEETINGThursday, September 27, 2018 at 4:30 PM

London & Middlesex Housing Corporation Boardroom1299 Oxford St. E., Unit 5C5 London, ON.

Board Members Present: Senior Staff Present:

Meeting to Order The Chair called the meeting to order at 4:36 p.m.

All staff exited for a Board-only session at 4:37 p.m. and re-entered at 5:07p.m.

Completion andAcceptance of theAgenda

With regard to the completion and acceptance of the agenda, L. Ducharmemoved, seconded by M. Rosehart that the agenda BE APPROVED andACCEPTED as amended.

Declaration ofConflict of Interest

The Chair called for declaration of conflict of interest with respect to theagenda. There were no conflict of interests declared.

Board MeetingMinutes of July 19,2018

With regard to the Board Meeting Minutes of July 19, 2018 l. Ducharmemoved, seconded by A. Evans that the Board Meeting Minutes of July 19,2018 BE APPROVED as amended.

CARRIED.CommunicationsCityCommunication-Planning &EnvironmentCommitteeMeeting

With regard to the communication from the City of London MunicipalCouncil, L. Ducharme moved, seconded by M. Allen-Easton that theCommunication from the City of London with respect to resolutions made atthe Municipal Council meeting held July 24, 2018 BE RECEIVED.

CARRIED.

City of London-Council Resolution

With regard to the Communication from the City of London MunicipalCouncil, L. Ducharme moved, seconded by M. Allen-Easton that theCommunication from the City of London with respect to resolutions made atthe Municipal Council Meeting held on August 28, 2018 BE RECEIVED.

CARRIED.

M. Allen-Easton Vice ChairS. Quigley ChairL. Ducharme DirectorM. Rosehart DirectorA.Evans DirectorD. Peckham Director

A.Mackenzie Director, Tenant ServicesN. Turner Director, Assets & Property

ServicesS.Campbell Director, Community

Development & EngagementL. Palmer Recording Secretary

Item 6


LMHC HousingPolicy ResearchAward

With regard to the London & Middlesex Housing Corporation HousingPolicy Research Award, L. Ducharme moved, seconded by M. Allen-Easton that the Communication regarding the London & MiddlesexHousing Corporation Housing Policy Research Award BE RECEIVED.

CARRIED.

Board ChairUpdate

With regard to the Board Chair Update, L. Ducharme moved, seconded byA. Evans that the Board’s verbal report of the All Mayoral CandidateDebate to be held on October 11, 2018 BE RECEIVED.

CARRIED.

CEO OperationsReport/ Update

With regard to the CEO Update Presentation, L. Ducharme moved,seconded by M. Allen-Easton that the CEO Update Presentation, includingthe Operations Report, BE RECEIVED.

CARRIED.

GovernanceCommittee Reportfor September 6,2017

With regard to the Governance Committee Report for September 6, 2018,M. Rosehart moved, seconded by A. Evans that the Governance Report ofSeptember 6, 2018 BE RECEIVED.

CARRIED.

With regard to the election of a Governance Committee Chair, L.Ducharme moved, seconded by D. Peckham that M. Rosehart BECONFIRMED as Governance Committee Chair.

CARRIED.

Indigenous PeopleRecognition

With regard to the Recognition of Indigenous Peoples and LandsStatement, M. Rosehart moved, seconded by L. Ducharme that theRecognition of Indigenous Peoples and Lands Statement BE APPROVEDto be read at the beginning of each Board of Directors Meeting as follows:

We would like to begin by acknowledging the treaty territory of the Anishnaabeg, which is defined within the pre-confederation treaty known as The London Township Treaty of 1796. Throughout time, this region has also become the current home to the Haudenosaunee and Lenni-Lenape Nations.

CARRIED.

Staff Report 2018-14: Conflict ofInterest Policy

With regard to Staff Report 2018-14: Conflict of Interest Policy, M.Rosehart moved, seconded by A. Evans that the Conflict of Interest PolicyBE APPROVED as amended.

CARRIED.


Human ResourcesCommittee Reportfor September 10,2018

With regard to the Human Resources Committee Report of September 10,2018, M. Allen-Easton moved, seconded by A. Evans that the HumanResources Committee Report of September 10, 2018 BE RECEIVED.

CARRIED.

Staff Report 2018-28: Code ofConduct Policies

With regard to Staff Report 2018-28: Code of Conduct Policies, M. Allen-Easton moved, seconded by L. Ducharme that the Code of ConductPolicies BE REFFERED to the Human Resources Committee forclarification on policy statement, policy program and practices.

CARRIED.

Staff Report 2018-29: Diversity Policy

With regard to Staff Report 2018-29: Diversity Policy, M. Allen-Eastonmoved, seconded by L. Ducharme that the Diversity Policy BE REFFEREDto the Human Resources Committee for clarification on policy statement,policy program and practices.

CARRIED.

Presentation:Staffing Changes &Culture

With regard to the Staffing Changes & Culture Presentation, M. Allen-Easton moved, seconded by D. Peckham that the Staffing Changes &Culture Presentation BE RECEIVED.

CARRIED.

Finance & AuditCommittee Reportfor August 29,2018

With regard to the Finance & Audit Committee Report for August 29, 2018,L. Ducharme moved, seconded by M. Rosehart that the Finance & AuditCommittee Report of August 29, 2018 BE RECEIVED noting verbal reportsof the upcoming Insurance Renewal for LMHC and re-costing of theOperational Budget.

CARRIED.

Staff Report 2018-24: Asset & RiskManagement

With regard to Staff Report 2018-24: Asset & Risk Management, L.Ducharme moved, seconded by M. Rosehart that Staff Report 2018-24:Asset & Risk Management BE RECEIVED for information purposes.

CARRIED.

Staff Report 2018-25: June 2018Financial ResultsSummary & FullYear Forecast

With regard to Staff Report 2018-25: June 2018 Financial ResultsSummary & Full Year Forecast, L. Ducharme moved, seconded by M.Rosehart that the Operating Budget Program Statements and Analysis,projecting an annual operating deficit of $281, 228 for the year of 2018 BEAPPROVED.

CARRIED.

With regard to the second quarter 2018 Capital Budget ProgramStatements, L. Ducharme moved, seconded by M. Rosehart that the report


BE RECEIVED noting the Administration is to confirm the 2018 Capital Budget Program detail for the next Committee meeting, including total projects and amount, requiring formal approval by the Board. CARRIED.

Staff Report 2018-26: Market/ Maximum Rent Charges

With regard to Staff Report 2018-26: Market-Maximum Rent Charges, L. Ducharme moved, seconded by M. Rosehart that Staff Report 2018-26: Market/ Maximum Rent Charges proposing an increase of 1.8% in market rents BE APPROVED. CARRIED.

Input Request- City of London Strategic Plan

With regard to the Input Request for the City of London's Strategic Plan, L. Ducharme moved, seconded by M. Rosehart that the Input for the City of London's Strategic Plan presented included in the Finance & Audit Committee Report BE APPROVED. CARRIED.

In Camera Matters Consistent with the provisions of Section 239 of the Municipal Act, L. Ducharme moved, seconded by A. Evans that the Board move In Camera to discuss: i. In Camera Board Meeting Minutes of July 19, 2018

CARRIED

Report on In Camera Matters

At the In Camera Session the Board: i. In Camera Board Meeting Minutes of July 19, 2018

Date of Next Board Meeting

The Board confirmed the date of the next meeting as October 25, 2018 or at the Call of the Chair if required earlier, noting that the next meeting may be held at a London & Middlesex Housing site.

Adjournment L. Ducharme moved, seconded by M. Allen-Easton that the meeting be adjourned at 6:38 p.m. CARRIED.

S. Quigley, Board Chair J. Browne, Chief Executive Officer

Prioritizing WorkStaff Report: CEO Updates

Presented by: Sarah Campbell on behalf of Josh Browne, CEOSeptember 27, 2018

Item 6Enclosure 1

Current StateCEO UPDATE: Prioritizing WorkSeptember 27, 2018

Too

Muc

h W

ork Volume

Issue Reac

tive Cultural

Issue Silo

s Poor communicationMissed OpportunitiesCompeting Priorities

Dire

ctio

n Lack of ClarityPlanning

If everyone is accountable, no one is accountable!

Item 6Enclosure 1

Prio

ritiza

tion Aligned

ClearSharedTime lined Re

spon

sive Every “YES”

= “Wait”Conscious Decisions about Change

Team Effective

CohesiveAccountable O

utco

me Measured

DeliverableTangible

Future StateCEO UPDATE: Prioritizing WorkSeptember 27, 2018

Item 6Enclosure 1

Action PlanCEO UPDATE: Prioritizing WorkSeptember 27, 2018

Priority Setting

One Member Account-

able

Work Plan/ Outcomes

set

Priorities Shared

with Board and Staff

Weekly reporting

at SLT/ Quarterly at Board

Item 6Enclosure 1

Priorities Oct-Dec 2018CEO UPDATE: Prioritizing WorkSeptember 27, 2018

Priority AccountableStrategic Priority

Alignment

1. SLT TeamDevelopment JOSH B.2,3,5, E.4

2. AssetManagement

Plan Ph.2NORM A. 1, 2, 3

3. CAREservice Model

SARAH D.1, 2, 3,4 E.1, 2

4. Zero BaseBudget JODY F. 1, 2, C.4,

D.1

Priority AccountableStrategic Priority

Alignment

5. RiskFramework JOSH A. 3, B. 2, E.

3, 4

6. WorkPlans 2019 ANDREA B.2, E. 1, 3, 4,

7. SouthdaleBusiness

PlanSARAH A.1, 3, C.4, D.

1, F.2

Item 6Enclosure 1

Secondary Priorities CEO UPDATE: Prioritizing WorkSeptember 27, 2018

38 Secondary Priorities

Item 6Enclosure 1

Opportunities/ Considerations

CEO UPDATE: Prioritizing WorkSeptember 27, 2018

Can we change culture of reactivity through focus and behavior around accountability?

Is the Board willing to accept “wait” in order to see key priorities move forward?

Failure is part of success, how could this new framework help us grow from mistakes to have more success?

What will the framework be in changing/ setting aside one priority in favour of another?

Item 6Enclosure 1

Policy Framework:New Policies and Plans for Future Policy Development

Staff Report: Code of Conduct Policy 2018-28& Diversity Policy 2018-29

Presented by: Sarah CampbellSeptember 27, 2018

Item 6Enclosure 1

Current StateStaff Report: Code of Conduct 2018-28& Diversity Policy 2018- 29

Patchwork of Policies Compliance and Cultural Risks

No Framework for Review/ Development

Lack of Policy, Procedure Practice

Mechanisms

Organizational limitations re: transfer

of knowledge and consistency

Item 6Enclosure 1

Future StateStaff Report: Code of Conduct 2018-28& Diversity Policy 2018- 29

Cohesive and Comprehensive

Policies

Policy Framework with template, references and

review timelines

Policy Programs: Implementation and

Practice Audits

Delegated Authority for Staff to manage majority of policy

Standardized reporting mechanism regarding compliance and good governance

Item 6Enclosure 1

Action PlanStaff Report: Code of Conduct 2018-28& Diversity Policy 2018- 29

Maintain and continue to

develop policy and

programs as needed

Adopt a policy framework

(report November

2018)

Start from scratch, use the best of

what we have

Pass Governance

Policies (Winter 2019)

Anticipate two year

policy and practice project

Item 6Enclosure 1

Today’s Policies for Approval

Staff Report: Code of Conduct 2018-28& Diversity Policy 2018- 29

Policy CODE OF CONDUCTValues, Mandate (mission and Vision),Professional Standards, Legislation, Ethics, Best Practices

DIVERSITYGroups protected by Human Rights, specific support for indigenous, people living with a disability, LGBTQ2S, visible minorities and women

Practice Orientation and Acknowledgement,Performance Management tool, Staff and Management Training, Complaints procedure, Annual review of Policy

Orientation includes Respect at Work Training and written acknowledgement, Management Training in application of policy and use in Performance Management

Procedure Performance Management, Complaints procedure, Options review

Accommodation, Hiring Practices, Advancement, Employee Engagement, Performance Management

Recommendation On the recommendation of the HR committee that the Code of Conduct policy for Staff be approved.

On the recommendation of the HR committee that the Diversity Policy be approved.

Item 6Enclosure 1


Staff Report: Code of Conduct 2018-28& Diversity Policy 2018- 29

• Risks - we must continue to respond to policy needs as our environment changesbut without a comprehensive approach, policy is ill implemented, and programs arehaphazard – The risk in not addressing this can be high in terms of all stake holders.

• Opportunity - CHC (Windsor) has a framework we can adopt after a five yearprocess in their organization, this will help us scope the work we need to do andgive us direction.

• Costs: no current budget implications to one to implement the two policies up forreview now, framework and training to develop strong policy capacity within LMHCwill have a cost to be defined in Policy Framework Motion in November.

• Is the Board supportive of this approach to developing policy?• Is there governance concerns not addressed through this report relating to policy?

Item 6Enclosure 1

HR: Staffing and CultureStaff Presentation: HR Committee

Presented by: Sarah CampbellSeptember 27, 2018

Item 6Enclosure 1

Current StateStaff Presentation: Staffing and Culture

Staff Yrs.

>1 yr. 1-3 years 3-10 years 10-20 years 20+

Item 6Enclosure 1

Future StateStaff Presentation: Staffing and Culture

• Optimization of staffing resources within currentfunding levels.

• Improved on-boarding, orientation and trainingprograms are being developed with staff involvement

• Monitoring staff engagement and retention is animportant KPI moving forward as it will reflect ourchanging culture.

• Cultural transformation is possible: Critical Mass

Item 6Enclosure 1

Action PlanStaff Presentation: Staffing and Culture

• OperationalCapacity

• New Teams• Culture shift

Optimize Staffing

• Document currentstate

• Leverage “fresheyes”

Process Review • Analyze bottle necks

and opportunities• Consider structure

to support growth

Functional Analysis

• Multi-Year budgetsubmission

Resource Plan

Item 6Enclosure 1


Staff Presentation: Staffing and Culture

• >25% staff have been hired under new mandate andvalues

• Leveraging technology and CEO meeting for alignment• Opportunity to see how current structure functions• Budget request to city for next multi-year budget• Congrats to staff and support of management for this

level of staffing changes.• Leadership development identified• Meet strategic priority of Investing in people

Item 6Enclosure 1

Asset and Risk ManagementStaff Report: 2018-24

Presented by: Norman TurnerSeptember 27, 2018

Item 6Enclosure 1

Overview:Staff Report: Asset and Risk Management2018-24

• Bill 6 requires a 10-year Asset Management Plan by Fiscal 2020 (Basic PlanningRequirement)

• LMHC’s Strategic Plan has significant Asset Management impact

• Many LMHC Assets are “Life Cycle Ended”, Risk is a significant additional componentin Planning

• Other LHC’s can accumulate Reserves or borrow, but this is not currently an optionfor LMHC.

• Our Tenant Profile does contribute to accelerated wear and tear.

Item 6Enclosure 1

Progress to Date:Staff Report: Asset and Risk Management2018-24

• FCI and Condition Assessment in place

• Appraisal Exercise complete

• High-level Strategic Asset Planning by SLT completed (Phase 1)

• Detailed Strategic Planning Programmed for remainder 2018 (Phase 2)

• Additional Resource from City (Secondment)

• Risk Categorization & Scoring (80% complete)

• Priorities Map (80% complete)

• HDC Discussions ongoing

Item 6Enclosure 1

Immediate Planning Priorities:

Staff Report: Asset and Risk Management2018-24

• Complete detailed planning by SLT at Strategic Asset Level

• Complete categories High Risk, Requires Attention, Run to Failure and PM

• Carry out Building Pathology Exercise on Townhomes to inform prioritization

• Overlay Community Planning & Engagement initiatives

• Complete Priority Chart- provide to HDC

• Determine levels of service and quantify cost

• Engage HSC to provide proposal for Risk Management & Service Level elements

Item 6Enclosure 1

Uncertainties,Obstacles, Challenges & Risks:

Staff Report: Asset and Risk Management2018-24

• Can we plan & accumulate appropriate Reserves• Can we employ Alternative Revenue Streams (Mixed Tenancy Models, Outside

Work, Grants, etc.)• What latitude we have for Financing• How we Revitalize (new build, swing space, etc.)

Each of these factors effect how we plan. Without these tools, our plan will be a condition list and price tag (which would not be fully funded in all probability) and a very high level of risk exposure is inevitable.

Item 6Enclosure 1

City of London Service Review

Presentation to Operational Leads

September 4 – 6, 2018

Item 8A

2© 2018 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Agenda

• Introductions

• Project roles and responsibilities

• Changes to project workplan

• Updated project schedule

• Municipal Reference Model overview

• Example – service profile template

• Example – opportunities template

• Engagement points



Introduction

• A new KPMG project team has been proposed and approved by the City

• As part of the project restart there have been changes proposed to:

• Workplan

• Project roles and responsibilities

• Project schedule

• The purpose of today’s meeting is to provide an update on the project restart



Project Roles and ResponsibilitiesCity of London Service Review

Name Responsibilities

KPMG KPMG will work in collaboration with the City to execute the workplan. They will undertake the necessary analysis and facilitation to develop the project deliverables, which include but are not limited to service profiles, benchmarking, opportunities listing and deep-dive business cases.

Anna Lisa BarbonProject Sponsor

As project sponsor, Anna Lisa has overall accountability for the review from the City’s perspective and will provide the necessary leadership, as required, to assist with the achievement of the project’s objectives.

Mark JohnsonProject Manager

Mark is the City’s project manager for the review and will be KPMG’s primary point of contact for this engagement. Mark will assist KPMG with the execution of the workplan, including but not limited to the review and sign off on the acceptance of all deliverables, in coordination with SLT/SMT and the Operational Leads.

SLT/SMT The City's SLT/SMT will provide ongoing input and direction to the service review. They will alsovalidate the findings and conclusions of the deliverables. SLT/SMT engagement points will be in the form of individual interviews, working sessions, and presentations.

Operational Leads Operational Leads are management employees with in-depth knowledge of the operational activities of the City’s business units. They will provide input as it relates to the services delivered by their business unit, and validate the findings and conclusions of the deliverables. Operational Leads engagement points will be primarily through working sessions.


Changes to Project WorkplanCity of London Service Review

Initial Workplan Revised Workplan

• Working sessions are the primary means of developing service profiles, opportunities and other outcomes

• Working sessions will be used to augment and validate and confirm analysis, rather than to facilitate brainstorming sessions

• Some work undertaken by KPMG, some work undertaken by City staff facilitated by KPMG

• KPMG will undertake development of draft documents, for review by the City prior to working sessions, interviews and presentations (resulting in the more effective use of City staff time)

• Workplan was linear with phases staged to occur one after the other

• Development of service profiles and opportunities listing will run concurrent

• Limited communications approach • Workplan includes periodic communications, with additional provision for engagement during in-depth review phase


Updated Project Schedule City of London Service Review

Service profile development

Opportunities listing development

Validation and interim reporting

Preliminary ranking

Validation and interim reporting

In-depth pilot reviews (2)

Final report preparation

Sep 24

Oct 22

Nov 19

Feb 4

Mar 4

Validation

Mar 18

Finalization and presentation

Apr


Municipal Reference Model Overview


Context for the Service Review Common threads point to services as the focus:

1. Improving our Services – can we improve efficiency, effectiveness and quality?

2. Back to Service Basics – what Services do we provide, are they core to our business, what value are they offering, do we offer the right Services?

3. Clearly stating our Service Levels – who decided what Service Level we currently offer, how much would it cost to improve the Service Level, is the public prepared to pay for the current Level of Service or should it be reduced?

4. Clarifying Service Accountability – who is accountable for what Services, is the allocation correct or does it need to be adjusted?

5. Exploring Alternate Service Delivery – can we outsource, in-source, privatize, contract out all or a portion of our Services?

6. Collaborating with Other Levels of Government – can we share the cost, provide added value and serve our customers better?

7. Investigating Service delivery options – how do we deliver a service, are there better ways, can we learn from others?




SERVICE

VISION /MISSION

PROGRAM(GOAL)

PUBLICSERVICE

INTERNALSERVICE

PROCESS /ACTIVITY

RESOURCE

CLIENTSET

Department1

Department 3

Department 2

Division1

Division3

Division2

Section1

Section2

ORGANIZATIONAL MODEL

Committee of Council

SERVICE MODELAuthority

Responsibility

Governance

Accountability

ROLESCity Council

City Manager / CAO




SERVICE

VISION /MISSION

PROGRAM(GOAL)

PUBLICSERVICE

INTERNALSERVICE

PROCESS /ACTIVITY

RESOURCE

CLIENTSET

Department1

Department 3

Department 2

Division1

Division3

Division2

Section1

Section2

ORGANIZATIONAL MODEL

Committee of Council

SERVICE MODELAuthority

Responsibility

Governance

Accountability

ROLESCity Council

City Manager / CAO

Why we deliver a Service?

How we deliver a Service?

Who delivers a Service?

Who benefits from a Service?

What Services do we deliver?



Benefits of Using the Municipal Reference Model

Benefits include:

1. Focus on what you do and not who delivers it

2. Improve communication among and between management and staff using a common vocabulary

3. Opportunity to ask some really tough questions – questions that have been lingering but never asked and/or answered

4. Ability to see the big picture when the big picture is required (i.e. Strategic Plan) and to see the very small details (i.e. Process, Activities and Tasks) – and everything in between

5. For many, this approach integrates all the disparate transformation initiatives that may be underway in your municipality

6. Change in the behaviour of management and staff – a move towards Service Excellence



Quantum of potential savings, impact on stakeholders

Linking MRM to the London Service Review

Service Profiles

• Subservices

• Customers

• Service level

• Delivery model

• Resources

• Benchmarking

Opportunities

• Discretion

• Differences from peers

• Delivery options

• Revenue model

In-Depth Reviews (Deep Dives)

Prioritization

Stakeholder engagement requirements



Example Service Profile Template


Long-Term Care (Dearness Home)Service Profile


Budget (in thousands)

Operating $21,088

Capital

Total Costs $21,088

Revenues $15,972

Net Levy $5,116

FTEs 197.6

Program

Social and Health

Organizational Unit

Dearness Home

Service Type

External

Service Description

Dearness Home provides the basic necessities of life, including accommodations and nursing, dietary and personal care to individuals who are otherwise unable to care for themselves due to age or physical condition and who are unable to obtain appropriate supports from other means, including family members, community organizations and public sector agencies.

Rationale For Service Level Assessment and Service Type

• Section 119(1) of the Long-Term Care Homes Act, 2007, S.O. 2007, c.8 (the “LTCHA”) requires every southern municipality that is an upper or single-tier municipality to establish and maintain a municipal home, either singly or jointly with other municipalities. In addition, the LTCHA and Ontario Regulation 79/10 also mandates specific service levels (e.g. minimum bathing frequency per week).

• City personnel have indicated that the Dearness Home is in full compliance with Provincial regulations and service standards

Performance and Benchmarking

• To be completed

Below Standard At Standard Above Standard

Essential

Traditional

OtherDiscretionary

Ser

vice

typ

e

Service level

Mandatory

Effectiveness Efficiency

Occupancy Level

Wait Times Cost per Resident

Day

Levy per Household

London

Hamilton

Windsor

Halton

Waterloo

Niagara

DRAFTFOR ILLUSTRATIVE PURPOSES

ONLY




Profile Component Definition

Mandate The public policy objective addressed by the service

The Dearness Home meets the basic social needs of seniors and other residents requiring long-term care, providing quality of life.

Basis for Delivery The underlying rationale for the City’s involvement in the service.

Mandatory – Section 119(1) of the Long-Term Care Homes Act, 2007, S.O. 2007, c.8 (the “LTCHA”) requires every southern municipality that is an upper or single-tier municipality to establish and maintain a municipal home, either singly or jointly with other municipalities. In addition, the LTCHA and Ontario Regulation 79/10 also mandates specific service levels (e.g. minimum bathing frequency per week).

Direct Client A party that receives a service output and a service value.

Residents of the Dearness Home, comprising of seniors and individuals with long-term care needs.

Indirect Client A set of parties that benefits from a service value without receiving the service output directly.

Family members of residents of Dearness Home.

Service Output The output of a service that fulfills a recognized client’s need.

Nursing, dietary and personal care

Service Value The way in which the service addresses the client’s need.

1. The City provides the basic necessities of life, including nursing, dietary and personal care, to individuals who are otherwise unable to care for themselves due to age or physical condition and who are unable to obtain sufficient levels of support from alternative means (direct client)

2. The services provided by the City alleviate demands on and concerns of family members who are unable to provide a sufficient level of support and care to the residents (indirect client)

Service Output Type A classification of service outputs based on the Municipal ReferenceModel.

1. Care and rehabilitation encounters (nursing and personal care)2. Units of resource (dietary and accommodations)

Service Output Level The quantum of service outputs provided to direct clients.

At Standard – The City operates at a service level output that is compliant with the requirements of the LTCHA and related regulation.


ONLY




Profile Component Definition

Sub-Services Elements of a service that have different outputs and/or clients.

1. Administration2. Nursing Services3. Administration Nursing Support4. Program and Support Services 5. Dietary Services 6. Courtyard Café7. Housekeeping Services 8. Laundry Services 9. Funerals and Burial10. Maintenance Services

Accountable Organization Unit

The organization within the City that is accountable for the service.

Housing, Social Services and Dearness Home (operational)Community and Protective Services Committee (governance)

Service Efficiency Indicators

A measure of the amount of resources used to produce a given output, normally expressed on a per unit of output basis.

1. Total operating cost per resident day 2. Net municipal levy per household

Service Effectiveness Indicators

A measure of the extent to which a program, service or process is achieving desired outcomes.

1. Occupancy level 2. Wait times


ONLY




Operating Cost per Resident Day (Efficiency) Net Municipal Levy per Household (Efficiency)

Occupancy Level (Effectiveness) Wait Times (Effectiveness)

London Comparator1

Comparator2

Comparator3

Comparator4

Comparator5

London Comparator1

Comparator2

Comparator3

Comparator4

Comparator5

London Comparator1

Comparator2

Comparator3

Comparator4

Comparator5

London Comparator1

Comparator2

Comparator3

Comparator4

Comparator5


ONLY


Proposed Comparator Municipalities City of London Service Review

Municipality Tier Population Growth Area

London Single 383,822 4.8% 420.35

Ottawa Single 934,243 5.8% 2,790.30

Hamilton Single 536,917 3.3% 1,117.29

Windsor Single 217,188 3.0% 146.38

Barrie Single 141,434 3.9% 99.04

Guelph Single 131,794 8.3% 87.22

Kingston Single 123,798 0.4% 451.19

Brampton Lower 593,638 13.3% 266.36

Markham Lower 328,966 9.0% 212.35

Vaughan Lower 306,233 6.2% 273.56

Kitchener Lower 233,222 6.4% 136.70

Halton Upper 548,435 9.3% 964.05

Waterloo Upper 535,154 5.5% 1,368.92

Niagara Upper 447,888 3.8% 1,854.23

Each service will be benchmarked against five comparator municipalities. Two to three of the single tier municipalities will always be used and depending on the nature of the service delivery, two to three lower tier or upper tier comparator municipalities may be used to allow a better comparison of it.


Example Opportunity Template (Taken From City of Timmins Service Delivery Review)


Opportunity

A. Opportunity Overview

As noted below, the results of our analysis indicate that the City provides a higher level of service with respect to landfill hours for the Deloro site as well as the tipping fee exemption provided to residential customers in comparison to other Northeastern Ontario municipalities.

In light of these differences, the City may wish to consider reducing operating hours for the Deloro landfill while at the same time reducing the residential exemption for tipping fees.

City of Timmins Service Review

Potential financial impact

To be determined x

Less than $100,000

$100,000 to $250,000

$250,000 to $500,000

More than $500,000

Type of opportunity:

Service level reduction x

Operating efficiency

Alternate delivery

Revenue generation

Approval category:

Strategic x

Operational

Implementation timeframe:

2019 x

2020

2021

Subsequent years

Summer landfill operations Timmins North Bay Sudbury Sault Ste. Marie

Operating hours:

• Monday to Friday

8:00 am to 5:45 pm

7:30 am to 5:00 pm

7:00 am to 7:00 pm

8:00 am to 5:00 pm

• Saturday 8:00 am to 5:00 pm

8:00 am to 5:00 pm

7:30 am to3:30 pm

• Sunday 12:00 pm to 4:00 pm

Closed Closed

Operating hours per week 68.25 hours 60.50 hours 69.00 hours 53.00 hours

Residential exemption 125 kg per trip None 50 kg per week None

Winter landfill operations Timmins North Bay Sudbury Sault Ste. Marie

Operating hours:

• Monday to Friday

8:00 am to 3:45 pm

7:30 am to 5:00 pm

8:00 am to 5:00 pm

8:00 am to 5:00 pm

• Saturday 8:00 am to 5:00 pm

8:00 am to 5:00 pm

Closed

• Sunday Closed Closed Closed

Operating hours per week 54.25 hours 56.50 hours 54.00 hours 45.00 hours

Residential exemption 125 kg per trip None 50 kg per week None

FOR ILLUSTRATIVE PURPOSES ONLY


Opportunity

B. Financial Impact and Timeframe

Assuming the closure of the Deloro landfill site on Sundays during both the summer and winter operating seasons, the total operating hours would be reduced by approximately 14%. Given that not all operating costs are variable in nature, a reduction in operating hours of 14% would not necessarily translated into a similar level of cost savings. However, assuming a reduction of 7% (i.e. 50% of the proposed percentage reduction in operating hours), the potential savings to the City arising from reduced landfill hours could be as high as $105,000 per year.

A reduction in the residential tipping fee exemption is anticipated to result in additional revenues for the City, the quantum of which cannot be reasonably determined.

Implementation of this opportunity could proceed as part of the City’s 2016 budget process.

C. Suggested Approval Requirements

This opportunity will require changes to the City’s service levels and user fee bylaw and as such, Council approval will be required. Accordingly, we have considered it to be a strategic-level opportunity.

D. Other Considerations

A reduction in both landfill operating hours and residential tipping fee exemption may result in increased incidences of garbage dumping. Accordingly, the City may wish to consider increasing both the level of fines (to the extent possible) and enforcement efforts to deter garbage dumping by residents.

City of Timmins Service Review

Potential financial impact

To be determined x

Less than $100,000

$100,000 to $250,000

$250,000 to $500,000

More than $500,000

Type of opportunity:

Service level reduction x

Operating efficiency

Alternate delivery

Revenue generation

Approval category:

Strategic x

Operational

Implementation timeframe:

2019 x

2020

2021

Subsequent years

FOR ILLUSTRATIVE PURPOSES ONLY


Engagement Points


Engagement Points

• Service review update sessions with Operational Leads Week of September 4th

• Working sessions with SLT and Operational Leads on Week of October 1st

service profiles

• Working sessions with SLT and Operational Leads on Week of October 15th

opportunity identification

• SMT meeting to present interim report #1 (service profiles) TBD

• SMT meeting to present ranking criteria for opportunities Week of October 22nd

• Working session with SMT to review preliminary prioritized October/November 2018list of opportunities and select pilot reviews to be undertaken



Engagement Points

• SMT meeting to present interim report #2 (opportunities, Week of November 19th

ranking criteria, and prioritization results)

• Two (2) in-depth pilot reviews undertaken November 2018 to March 2019

• SMT meeting to present interim report #3 (status updates January 2018on in-depth pilot reviews)

• Working session with SMT on final report March 2019

SLT/SMT and Operational Leads can expect material one week in advance of engagement point


kpmg.ca

© 2018 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

The Corporation of the City of LondonOffice 519.661.2489 ext. 4599Fax [email protected]

P.O. Box 5035300 Dufferin AvenueLondon, ONN6A 4L9

October 17, 2018

Chair and MembersLondon and Middlesex Housing Corporation

I hereby certify that the Municipal Council, at its meeting held on October 16, 2018resolved:

That the resignation from Mark F. Rosehart from the London and Middlesex HousingCorporation Board of Directors BE ACCEPTED; it being noted that this vacancy will beincluded in the advertisement for appointments for the new term of council.(4.1/11/SPPC)

C. SaundersCity Clerk/hw

cc: J. Browne

Item 8B


Finance & Audit Committee Meeting Page 1 of 2 Wednesday, October 17, 2018

FINANCE COMMITTEE REPORTWednesday, October 17, 2018

Board Members Present: Senior Staff Present:

Declaration ofConflict of Interest

There were no conflict of interests declared.

FinanceCommitteeMeeting Minutes ofAugust 29, 2018

APPROVED the Finance Committee Meeting Minutes of August 29, 2018.

Finance & AuditCommittee WorkPlan

RECEIVED the Finance & Audit Committee Work Plan as presented.

Staff Report 2018-30: HSC InsuranceProgram

APPROVED LMHC’s 2019 Insurance program by confirming the CEOexecution of the 2019 Insurance Programs documents as the 2018program expires October 31, 2018 and the 2019 program takes effectNovember 1, 2018 noting:a) The award is consistent with the Board’s decision not to receive a non-

solicited quote from another insurance provider for the 2017-2018renewal;

b) The program meets the related requirements/ expectation of theShareholder Declaration/Service Agreement;

c) The program is consistent with the expiring insurance, save an except

a net number of market improvements; and

d) The recommended renewal program cost for insurance is $500,988 or

$21,263 more than 2017/ 2018.

CONFIRMED the continuation of the agreement with the City of London for

the management of risk management services associated with LMHC

insurance program, including the requirement to contribute to a City-held

reserve fund for self assurance, noting the reserve fund is used to satisfy

LMHC insurance policy deductible requirement and the annual contribution

for 2019 is expected to be approximately $120,125.

L. Ducharme Committee ChairV. Blackmore Director & Mayor Southwest

MiddlesexS. Quigley Director

J. Browne Chief Executive OfficerN.Turner Director, Asset

ManagementJ.Cuylle Manager, FinanceM. Byl Manager, Capital Projects

and ConstructionL. Palmer Recording Secretary

Item 9B

Finance & Audit Committee Meeting Page 2 of 2 Wednesday, October 17, 2018

Staff Report 2018-31: Adjusted June2018 Capital WorksReport

a) APPROVED amending the 2018 Capital budget to include two

additional projects, one for Tech Support Upgrades (software/

hardware) for $175,000, and Consulting Services for the Asset

Management Plan for $25,000, with funding of same coming from the

LMHC Capital Reserve Fund, held by the City of London.

b) APPROVED requesting $595,743 in SHARP/ SHIP Funding

supporting related capital expenditure for SHAR/ SHIP projects, noting

if the funding is not receive the $595, 743 will be funded from the

LMHC Capital Reserve Fund held by the City of London.

c) APPROVED amending the 2018 Capital Budget to include funding

(budget) reference of $83,700 for active carry-forward projects from

prior years (regarding projects 2017-0038; 2017-0046; 2017-0037;

2017-0040; 2016-0011; and 2016-0003), noting the funding reference

was previously approved by the Board.

d) APPROVED requesting $490,811 in SHARP funding for Boiler

Replacement (a SHARP approved project) previously funded from the

LMHC capital reserve fund, held by the City of London, noting if

received the $490,811 would be returned to the reserve fund.

e) FORWARDED the June 2018 Capital Works Report as amended per

a) through e) to the Board for their review and approval, noting the

amended 2018 Capital Budget provides for capital investment of

$6,910, 286 covering 49 projects.

f) ADVISED the Board that a draft 2019 Capital Budget Program will be

presented to the Finance & Audit Committee for review and

consideration at its November 6, 2018 meeting prior to the program

being forwarded to the Board.

g) DIRECTED Administration to provide the Finance & Audit Committee

for review and approval the LMHC Capital plans for SHAIP funding at

its November 6, 2018 meeting.

Cap-and-TradeInquiry

RECEIVED a verbal report from staff, noting that the cancellation of Cap-and-Trade resulted in a 2019 budgetary reduction of $89,007 for LMHC.

L. Ducharme , Committee Chair

STAFF REPORT 2018 – 30

TO: Chair and Members Finance Committee Meeting on October 18, 2018

FROM: Jody Cuylle, Finance Manager

SUBJECT: HSC INSURANCE PROGRAM

RECOMMENDATION:

That, on the recommendation of the Manager of Finance with the concurrence of the ChiefExecutive Officer, the Finance & Audit Committee APPROVE LMHC’s 2019 Insuranceprogram by confirming the CEO execution of the 2019 insurance programs documents as the2018 program expires October 31, 2018 and the 2019 program takes effect November 1,2018 noting:

• The award is consistent with the Board’s decision not to receive a non-solicited quotefrom another insurance provider for the 2017-18 renewal;

• The program meets the related requirements/expectation of the ShareholderDeclaration/Service Agreement;

• The program is consistent with the expiring insurance, save an except a net number ofmarket improvements; and

• The recommended renewal program cost for insurance is $500,988 or $21,263 morethan 2017/2018.

STRATEGIC ALIGNMENT:This report is consistent with LMHC’s new Strategic Plan with particular linkage to our strategicgoal of “Long Term Financial Growth and Stability.”

BACKGROUND:CITY OF LONDON INSURANCE PROGRAM:

Background

LMHC’s risk management function has been outsourced to the City of London Risk

Management Department. The City of London goes through HSC to negotiate the insurance

rates for the members included in the program and based on size, is able to obtain better rates

and policies for all entities participating. The City of London maintains the Self Insurance

Reserve Fund (SIRF) related to the program and the rates are provided on a calendar year.

HSC maintains the HSC Property Claims Trust Fund and the rates are provided on a

November-October fiscal year.

Item 9BEnclosure 1

______________________________________________________________________________ Finance & Audit Committee Meeting Page 2 of 7 October 17, 2018

Program Overview & Key Features

As a member of the program we are required to contribute to the City of London SIRF annually

based on a calculation including our historical loss, exposure and current open claims

($120,125 for the 2017-18 year). The insurance deductible is $25,000 per loss of which the first

$1,000 is paid for by LMHC and up to $24,000 is paid for out of the City of London SIRF. Any

loss above $25,000 to $2.5M is paid for by the HSC Property Claims Trust Fund. LMHC is also

responsible for contributing to this fund annually ($236,117 for 2018-19 and $233,878 previous

year)

In summary The City of London is responsible for negotiating rates and coordinating claims with

HSC and maintaining an adequate balance within the SIRF. HSC is responsible for brokering

the insurance programs, coordinating claims with the insurance company and maintaining an

adequate balance in the Property Claims Trust fund. LMHC is responsible for paying the $1,000

deductible and contributing to both the SIRP and Property Claims Trust Fund on an annual

basis.

Claims History

In the time period from January 1, 2017 to August 31, 2018 LMHC has had 7 casualty/liabilityclaims (3 remain open) and 36 property claims (18 remain open).

Total Claims:

Item 9BEnclosure 1


Open Claims:

Renewals Process and TimelinesAnnually, LMHC receives a renewal invoice for the Self Insurance Reserve Fund based on loss

history and claim payments. These funds are used to pay claims for the upcoming policy year.

The next policy will cover the period of January to December 2019. The previous year financial

impact was $120,125 with no expected material change for the 2019 renewal.

Housing Services Corporation (HSC) Insurance Program

HSC is mandated by the Housing Services Act (HSA) to provide and manage a group insuranceprogram for prescribed housing providers, including all Local Housing Corporations of whichLMHC is one. The goal is to ensure program participants receive the lowest overall cost of riskfor their housing portfolios while obtaining superior insurance coverages specifically designed tomeet the unique needs of the social housing sector.

HSC Insurance & Risk Management is focused on protecting the financial well-being of housingproviders and residents from risk events. HSC manages one of the largest group insuranceprograms in North America, delivering competitive premiums and guaranteed coverage that istailored specifically to the needs of the housing sector. The program also provides support tosocial housing providers with education on risk management and liability and loss prevention.

It is the view of the City of London Risk Management that the HSC Insurance program is wellmanaged, comprehensive and competitive. LMHC staff concur with this assessment. Thefollowing information provided by HSC offers an overview of the program.

Item 9BEnclosure 1


Key Principles of the HSC Group Insurance Program

• To meet overall provider coverage needs – Core coverages specifically designed forsocial housing provider needs, including mould

• To address the gap left by private insurance providers – Guaranteed coverage forall participants, regardless of their claims history

• To deliver best overall value for money and ensure accountability – Stringentprocurement processes to obtain the optimum combination of coverage, flexibility andpremium pricing

• To balance fairness with affordability – Premium allocations that account forindividual claims histories but remain as affordable as possible

Benefits of HSC Group Insurance

As a non-profit organization whose board is comprised of Service Manager and providerrepresentatives from across Ontario, HSC’s primary objective is to protect the interests of thehousing sector. As such, unlike private insurance brokers, HSC is focused on the broader picture.

• You Don’t Pay for Claims Investigation and Defense Costs – Since 2003 the programhas saved housing providers more than $4.5 million in investigation and legal defense costs.

• Competitive Rates – Thanks to a combination of low claims and HSC negotiations, basicproperty premium rates reduced overall by nearly 30% from 2003 to 2008.

• Commission Caps – HSC has negotiated commissions that are approximately 50% lowerthan those available to individual clients.

• Procurement Best Practices, Without the Costs – The HSC Group Insurance Programguarantees housing providers that their insurance intermediaries, insurers and supportingservice providers were selected using stringent public procurement processes with no directadministrative costs to them.

• Providing direction to the Province – The size and scale of HSC’s group insuranceprogram enables us identify and bring to the Province’s attention broad risk managementissues and trends and to offer recommendations on behalf of the group.

Program Overview & Key Features

The program’s structure for 2018/19 will remain similar to the structure that has been in placefor the past three years. To best address the needs of providers of varying sizes and to attractand negotiate the best coverage and prices from insurers, the group is divided into two streams.Stream A comprises of providers with total insured values under $100M. Stream B comprises ofproviders with total insured values over $100M. The table below outlines common features aswell as differences in program attributes.

Item 9BEnclosure 1

https://www.hscorp.ca/our-programs-and-services/insurance/#insuranceprinciples

https://www.hscorp.ca/our-programs-and-services/insurance/#benefitsinsurance


The table below outlines common features as well as differences in program attributes.

In order to ensure the coverage that housing providers need with affordable and competitive

rates, HSC conducts a competitive stringent procurement process, which regularly tenders each

component of the group insurance program.

HSC’s program broker (currently Marsh Canada) and HSC meet with insurers annually, review

risk initiatives and claims, and negotiate rating and premiums for the program based on the

agreed premium allocation model. HSC issues a public Request for Proposal (RFP) for a

program broker and a third-party claims adjuster every five years.

Property Claims Trust Fund

Since the 2011/12 policy term, HSC has incorporated a Property Claims Trust Fund into itsprogram design. The Property Claims Trust Fund works like a group deductible. Insurers onlypay for larger catastrophic property insured claims. If the Property Claims Trust Fund is fullydepleted during the policy term, the insurer takes over payment of all further claims. TheProperty Claims Trust Fund relates only to the property insurance component of LMHC’sinsurance. A portion of our property premium is paid directly to the Property Claims Trust Fund.

For 2018/2019 LMHC’s portion of the premium is $255,006 ($252,588 previous year).Contributions into the Property Claims Trust Fund are held in trust by HSC and used by theadjusters to pay claims. The amount of the Property Claims Trust Fund is determined annuallyby the insurer based on the claims history of the program. The Program Broker negotiates withthe insurer on behalf of the providers to identify a Property Claims Trust Fund amount thatprovides the most competitive program premiums for providers.

Item 9BEnclosure 1


There are many benefits to having a Property Claims Trust Fund:

• Mitigates overall cost of risk of the group program by funding the smaller, more commonclaims

• Transfers the cost of insuring and funding the larger unexpected claims to the insurer

• Reports can be generated from loss data, providing members with information regardingclaim frequency and type that may guide and support risk control

• Enables targeted risk management support for the type of claims that are most commonin the program

• Gaining a better understanding of the types of claims and working with providers todevelop risk management strategies, there is an opportunity to reduce claims andthereby create a surplus that remains with the group, not the insurance company.

HSC regularly reports on the status of the Property Claims Trust Fund via its quarterly programcommunication, Managing Risky Business. In addition, the Program’s Insurance AdvisoryCommittee, which is comprised of provider and risk manager representatives, monitors the fundand provides advice and support to HSC on developing risk management strategies to reduceclaim.

Renewals Process and TimelinesAnnually, LMHC receives a renewal application to determine our premium for the next year.

The application allows the program broker to form a clear understanding of the risks facing our

buildings and the ‘exposures’ in question and if we have bought or sold properties in the last

year.

LMHC has the option to get a quote from an alternate broker so long as alternate quotesreflect the program’s minimum coverage standards. In 2017, LMHC, through the City ofLondon’s Risk management department, received an unsolicited request from McConnvilleOmni insurance brokers for the upcoming renewal. The Board Finance Committee, at themeeting of May 24, 2107, approved the receipt of a quote, noting the limited renewal timelines(see Table 2). McConnville Omni insurance brokers subsequently decided not to provide aquote, as they were unable to secure a competitive commitment from insurers.

Table 2: Alternative Broker Renewal Process & Timelines

Although an alternate quote was not received for the upcoming year, it should be noted thatthere may be value in soliciting proposals through an RFP process for our insurance portfolioevery three or four years. However, the RFP process should not be mandatory on an annualbasis as insurance is an essential business requirement and an annual RFP process couldadversely affect our rates. LMHC’s current purchasing policy and spending limits do exemptinsurance expense premiums, claim settlements and adjuster services as goods and servicessubject to the policy.

Item 9BEnclosure 1


FINANCIAL IMPACT:The 2018/2019 premium cost for insurance under the HSC program is $500,988 ($479,725

previous year) which can be accommodated within the approved City of London 2016-2019

multi-year budget.

CONCLUSION:The HSC Insurance Program is a comprehensive insurance service designed to meet the needsof social housing providers in Ontario. The philosophy behind the program is to ensure thatproviders have adequate insurance coverage at the best possible price so they are protectedwhen accidents or disasters occur and to help providers, and the sector as a whole managerisk.

LMHC and the City of London concur that the insurance program provided through HSC is well

managed, comprehensive and competitive. At this time, LMHC has not secured an additional

quote through an independent insurance brokers to find an alternative or stronger product than

what LMHC already has in place through HSC and the 2018/2019 insurance renewal. As such,

staff request that the Finance & Audit Committee support the recommendation contained herein.

PREPARED and SUBMITTED BY: REVIEWED and CONCURRED BY:

JODY CUYLLEFINANCE MANAGER

JOSH BROWNECHIEF EXECUTIVE OFFICER

Attachments:

Appendix 1: Housing Services 2018 Corp Letter Packet

Appendix 2: Housing Services Policy

Appendix 3: 2018/2019 Insurance Breakdown

Item 9BEnclosure 1

Item 9BEnclosure 1Appendix 1

Jason WillsLondon & Middlesex Housing Corporation 300 Dufferin AvenueLondon ON N6A 4L9

September 28, 2018


September 28, 2018

Pol. No. MCL-2081

Overall Policy Limit: $25,000,000 per occurrence

Subject to the following aggregates applicable to

all insured Housing Providers:

$300,000,000 Shared Program Aggregate for Flood

$300,000,000 Shared Program Aggregate for Earthquake

Certain coverage extensions are subject to Sublimits and the deductible applicable peroccurrence and will be outlined in the renewal document provided.

Primary: $10,000,000 limitVarious Lloyd's Syndicates: 75%

XL Specialty Insurance Company, Canadian Branch: 12.5%Aviva Insurance: 12.5%

Excess: $15,000,000 limit excess of $10,000,000 Primary

Northbridge: 37.5%

Aviva Insurance: 15%

National Liability & Fire (Berkshire Hathaway): 15%

XL Specialty Insurance Company, Canadian Branch: 12.5%

Allied World: 10%

Royal and Sun Alliance: 10%

Newly acquired property is subject to a 120

Hours reporting period from the date of

acquisition.

Insured must give notice to the Insurer uponbecoming aware of the loss and deliver as

soon as practicable the Proof of Loss

Page 3September 28, 2018

Pol. No. MCL-2083

XL Specialty Insurance Company, Canadian Branch: (100%)

$2,000,000 per occurrence

$2,000,000 aggregate Products and Completed Operations

$2,000,000 aggregate, Employee Benefits (Claims Made)

Unless stated otherwise in the renewal document,

$15,000,000 Annual General Aggregate

(applies to providers with less than 500 Units)

Insured must give notice to the Insurerupon becoming aware of the loss or any

incident that may give rise to a loss

under the policy.

Limited Pollution Liability is subject to a

discovery and reporting period of 240hours. Pollution coverage is subject to

discovery within a time period and

thereafter to be reported to the insurer

30,000,000 Annual General Aggregate

(applies to providers with 500 Units or More)

Deductibles will be stated in the renewal document provided

within the time period reference in the

policy.

Employee Benefits Liability is claims-made

This means that in order for coverage to

apply, the Insured must notify the Insurerimmediately upon knowledge or discovery

of loss or of an "occurrence" which maygive rise to a claim during the policy period.

Pol. No. MCL-2083


Pol. No. MCL-2083

XL Specialty Insurance Company, Canadian Branch:(100%)

$3,000,000 per occurrence/

$15,000,000 General Aggregate

We have reviewed the Primary and Umbrella Liability policies and

find that the following non-concurrency problems exist:

- Abuse Liability Exclusion

- Pollution Liability Exclusion

- Professional Liability Exclusion

- Employee Benefits Exclusion

- Employers Liability Exclusion

The insurer is unwilling to provide an option to extend the umbrella policies to address the

above non-concurrencies.

Should you wish to consider optional insurance coverage available, please contactMarsh Canada.

Insured must give notice to the Insurer upon

becoming aware of the loss or any incident

that may give rise to a loss under the policy.

Pol. No. 00001619Boiler Inspection and Insurance Company (BI&I) 100%

$50,000,000 Combined Property and Business Interruption

Note: In addition to the deductible applicable per occurrence, the Policy contains a waiting

period of 24 Hours for Business

Interruption claims and 96 Hours for Course of Construction Delayed Start Up.

Newly acquired property is subject to a

365 reporting period from the date of

acquisition.

XL Specialty Insurance Company, Canadian Branch: (100%)

$250,000 - Employee Dishonesty

Upon knowledge or discovery of loss or of an

"occurrence" which may give rise to a claim

the Insured must give notice as soon as

practicable as well as report the incident to

the police if the loss is due to a violation of

law.

upon becoming aware of the loss or any

Certain coverage extensions are subject to Sublimits and are outlined in the renewal

document provided.

Pol. No. CD09711199Great American Insurance Company (100%)

Policy Limit as stated in the renewal document provided, per wrongful act

$10,000,000 Program Annual Aggregate

Retroactive date: As of Inception date

Discovery Period: 90 Days


apply, the Insured must notify the Insurer

immediately upon knowledge or discovery

of loss or of an "occurrence" which may

give rise to a claim during the policy period

Claims Made Policy Form

Not Insured / Coverage Not Purchased

Pol. No. MCL-2083 - XL Specialty Insurance Company, Canadian Branch: (100%)

Claims Made

$2,000,000 per occurrence$2,000,000 general aggregate

Claims Made Policy Form


apply, the Insured must notify the Insurer

immediately upon knowledge or discovery of

loss or of an "occurrence" which may give

rise to a claim during the policy period.

Pol. No. MCL-2083-XL Specialty Insurance Company, Canadian Branch (100%)

Insured must give notice to the Insurer

incident that may give rise to a loss

You do not currently have the Cyber extension on your policy. If you would like to

purchase, please contact Marsh at [email protected].

The additional premium to add Cyber coverage will be: $53


$2,000,000 per occurrence

$2,000,000 annual aggregate

under the policy.


London & Middlesex Housing Corporation

September 28, 2018

(Stream B)$10,000,000

(Stream B)$10,000,000

(Stream B)$10,000,000

(Stream B)$15MM xs of $10MM






(Stream B)$50,000,000

September 28, 2018

(Stream B)$2,000,000

(Stream B)$3,000,000

(Stream B)$250,000

(Stream B)$2,000,000

September 28, 2018


HOUSING SERVICES CORPORATIONGROUP INSURANCE PROGRAM

PROGRAM DECLARAT ION OF INSURANCE

THIS POLICY CONTAINS A CLAUSE(S) WHICH MAY LIMIT THE AMOUNT PAYABLEPage 1

Named Insured: <<nmleg1>><<nmleg2>><<nmleg3>>

Mailing Address: <<CADDR1>> <<CADDR2>> <<CCITY>>, <<CSTATE>> <<POSTALCODE>>

Insured Location(s): As per the attached schedule

Declaration of Insurance No:

InsPol - HCSnum

Policy Period: Effective Date: <<EFFECTIVE_DA 12:01 a.m. Expiry Date: <<EXPIRY_DATE> 12:01 a.m.All times are local time at the Named Insured s postal address shown in this Declaration of Insurance.

The insurance afforded is that defined below or as may hereinafter be amended under the Master Policy. Each section is to be considered as separate insurance fully as if afforded under an entirely separate policy.

Summary of Coverages and Limits of Insurance

PROPERTY

All Risks of Direct and Physical Loss or Damage including Flood, Earthquake and Sewer Back-up, except as excluded

Property of Every Description including GrossRents/Rental Income and Business Interruption (applicable only if values have been declared to theinsurer).

Any one occurrence

Earthquake for properties valued less than $3,000,000

Earthquake for all other properties valued equal or more than $3,000,000 Earthquake for properties locatedon Cresta Zone 1 (Ottawa, Kingston, Cornwall, Hawkesbury) area

Flood

Per PropertyDeductibles shown in

Schedule of Locations

All other losses (except as noted below)

Gross Rentals Indemnity PeriodPer Indemnity Period shown in Schedule of

Locations

Business Interruption Indemnity Period Per Indemnity Period shown in Schedule of

Locations

Condominium Unit Owners Contingent Per Property

Deductibles shown in Schedule of Locations

Condominium Owners Loss AssessmentPer Property

Deductibles shown in Schedule of Locations

Condominium Unit Improvements and BettermentsCoverage

Per PropertyDeductibles shown in

Schedule of Locations

Sub-Limits:

Earthquake, Program Annual Aggregate

Flood, Program Annual AggregateExtension of Coverage: (The following extensions of coverage does not increase the limit(s) of liability in the policy)

Accounts Receivables

Additional Living Expenses

Ÿ Per Unit

Ÿ Per Occurrence (maximum)

Declaration of Insurance No.: 187707 - LHC039London & Middlesex Housing Corporation

300 Dufferin AvenueLondon, ON N6A 4L9

LHC039

November 1, 2018 November 1, 2019

$25,000,000 3% Minimum $50,000

3% Minimum $100,000

5% Minimum $250,000

$25,000

As shown in Scheduleof Locations

Per Indemnity Periodshown in Schedule ofLocations

Per Indemnity Periodshown in Schedule ofLocations

$300,000,000

$300,000,000

$10,000

$2,500,000

Not Insured

Not Insured

Not Insured

$5,000,000



Declaration of Insurance No.: 2687274-C00493

THIS POLICY CONTAINS A CLAUSE(S) WHICH MAY LIMIT THE AMOUNT PAYABLEPage 2

Limited Fungi / Spores Extension (Grow Ops Extension)

Ÿ Per Occurrence

Automatic Acquisition Clause - subject to reporting within 120 days

Course of Construction (Direct Damage)

Green Building Upgrade to rebuild/replace with upgrade to “Green” alternatives

Additional 25% of the value of the loss to a

maximum of $2,5000,000

Pre-Existing Green Building Extension any additional costs and expenses, including “Green” certified Consultants required to maintain or re-attain the same pre-loss “Green Building” designation

Included in Values as reported and shown in

the attached Schedule ofLocations

Contamination Clean Up and Removal and Annual Aggregate

Electronic Data Equipment

Errors and Omissions

Extra ExpenseCrisis Management Business Interruption

Fine Arts

Fire Extinguishing Materials and Fire Fighting Expenses

Lawn, Trees and Shrubs

Master Keys

Personal Effects Ÿ Per Employee

Ÿ Per Occurrence

Professional Fees

Property of Others

Property in Transit

EQUIPMENT BREAKDOWN

Sudden and Accidental Breakdown of Boilers, Pressure Vessels and Electrical and Mechanical Machines excluding Production Machines

Combined direct Damage and Business Interruption (Gross Rents, Profits as per Values declared and Extra Expense)

Business Interruption Loss of Rental IncomeExpediting Expenses

By-Laws including Additional Time Required to Repair

Denial of Access

Professional Fees Sub-Limits:

Extra Expense

Hazardous Substances Water Damage

Ammonia Contamination

Data Restoration

Spoilage

Course of Construction

Errors and Omissions

COMMERCIAL GENERAL LIABILITY

Bodily Injury, Personal Injury and Property Damage, Products and Completed Operations, Each Accidentor Occurrence

Bodily Injury and Property Damage

$250,000

$10,000,000

$5,000,000

$1,000,000

Included$5,000,000

IncludedActual Loss Sustained 4 Hours Waiting Period

Declaration of Insurance No.: 187707 - LHC039

Included

Included

$100,000Included

$5,000

$25,000$5,000,000Included

Included

$50,000,000Any one Accident

As shown inSchedule of Locations

Direct Damage

24 Hours

96 Hours

Waiting Period, Business

Course of Construction (DelayedInterruption

Start Up)

24 Months IndemnityIncludedIncluded8 Weeks

Included

$1,000,000$1,000,000$1,000,000

$1,000,000$50,000$50,000

$5,000,000$5,000,000

$2,000,000 $25,000 Bodily Injury and PropertyDamage

Additional 25% of thevalue of the loss to amaximum of $2,5000,000

Included in Values asreported and shown inthe attached Schedule ofLocations




THIS POLICY CONTAINS A CLAUSE(S) WHICH MAY LIMIT THE AMOUNT PAYABLE

Annual Aggregate Products and Completed Operations

Ÿ Annual General Aggregate less than 500 units

Ÿ Annual General Aggregate more than 500 units Sub-Limits:

Medical Payments, Any one Person, Any one AccidentEmployee Benefits Liability, Each Occurrence and Annual Aggregate (Claims Made)

Tenants’ Legal Liability, any one Occurrence

Non-Owned Automobile Liability, any one Occurrence

Advertising Liability, any one Occurrence

Elevator CollisionForest Fire Fighting Expenses, any one Occurrence

Legal Liability for Damage to Hired Automobiles - SEF#94, All Perils

Sudden and Accidental Pollution Liability (240 HoursDiscovery/Reporting)

Mould Limited Fungi or Spores Coverage

Ÿ Any one Accident or Occurrence

Ÿ Annual Aggregate

Non Municipal Water Supply Endorsement

Legal Expenses (Claims Made) Per Claim Annual Aggregate

Fumigation and Extermination Operations Liability

Abuse Limitation Endorsement

Ÿ Any one Accident or Occurrence and Annual Aggregate

Tenant Support and/or Assisted Care Services Errors and Omissions Endorsement - Claims MadeAny one Claim and Annual Aggregate

Property Managers Errors and Omissions Endorsement - Claims MadeAny one Claim and Annual Aggregate

UMBRELLA LIABILITY

Personal Injury, Property Damage, Products and Completed Operations, Non-Owned Automobile,Tenants’ Legal Liability, Each Accident and Occurrence

Annual Aggregate Products and Completed Operations

Annual General Aggregate

Automobile Number of Automobiles:

CRIME

Employee Dishonesty (Form A)Loss of Money Inside Premises

Ÿ Sub limit for Cheques

Loss of Money Outside Premises

Ÿ Sub limit for Cheques

Money Order and Counterfeit Currency

Depositors Forgery

Third Party Computer Theft, Fund Transfer, or TollFraud

$2,000,000

$15,000,000

$30,000,000

$2,000,000

$2,000,000 $2,500

$2,000,000 $5,000

$2,000,000 $1,000$2,000,000$2,000,000$2,000,000 $5,000

$100,000 $1,000

Included

$100,000$250,000Not Insured$250,000 $25,000

$2,000,000

$2,000,000 10% of loss, minimum of $5,000

$2,000,000 $5,000

Not Insured

$3,000,000 $10,000 Self Insured Retention

$3,000,000

$15,000,000

Not Insured

$250,000 NIL$25,000 NIL

$50,000 NIL$25,000 NIL$50,000 NIL$25,000 NIL$250,000 NIL

$250,000 NIL


$500,000




THIS POLICY CONTAINS A CLAUSE(S) WHICH MAY LIMIT THE AMOUNT PAYABLE

DIRECTORS AND OFFICERS LIABILITY

Each Wrongful Act

Program Annual General Aggregate

Cyber Liability

Line of Business Insurer Master PolicyNumber

Participation Premium

1) Property Primary $10,000,000

Various Lloyd’s Syndicates MCL-2081 75.00% XL Specialty Insurance Company, Canadian Branch MCL-2081 12.50%

Aviva Insurance Company of Canada MCL-2081 12.50% 2) Property - Excess Layer

$15,000,000 of $10,000,000Northbridge General Insurance Company MCL-2081 37.50% XL Specialty Insurance Company, Canadian Branch MCL-2081 12.50%

Aviva Insurance Company of Canada MCL-2081 15.00% Royal and Sun Alliance Insurance Company of Canada MCL-2081 10.00%

National Liability & Fire Insurance Company(Berkshire Hathaway) MCL-2081 15.00%

Allied World Specialty Insurance Company (formerly Darwin National Assurance Company) MCL-2081 10.00%

Equipment Breakdown Boiler and Inspection Insurance Company 00001619 100.00%

Commercial General Liability XL Specialty Insurance Company, Canadian Branch MCL-2083 100.00%

Abuse Liability Endorsement XL Specialty Insurance Company, Canadian Branch MCL-2083 100.00%

Non Municipal Water Supply Liability Endorsement

XL Specialty Insurance Company, Canadian Branch MCL-2083 100.00%

Tenant Support and/or Assisted Care Services Errors and Omissions


Property Managers Errors andOmissions


Umbrella Liability XL Specialty Insurance Company, Canadian Branch MCL-2083 100.00%

Crime XL Specialty Insurance Company, Canadian Branch MCL-2083 100.00%

Directors’ and Officers’ Liability Great American Insurance Group CD09711199 100.00%

TOTAL PREMIUM

This Declaration of Insurance is made and accepted subject to the foregoing stipulations and conditions of the Master Policies number: Property Master Policy Number MCL-2081, Master Excess Property Policy Number MCL-2081, Comprehensive General LiabilityMaster Policy Number MCL-2083, Umbrella Master Policy Number MCL-2083, Equipment Breakdown Master Policy Number00001619, Directors’ and Officers’ Liability Master Policy Number CD09711199 issued by the insurers indicated above toHOUSING SERVICES CORPORATION AND/OR ALL INSURED HOUSING PROVIDERS NAMED HEREIN AND HEREAFTERCALLED THE INSURED, copy of which is available at the office of Marsh Canada Limited at Toronto, Ontario. Which is herebyspecially referred to and made part of this Declaration of Insurance together with such provision, agreements or conditions, as may beendorsed hereon or added thereto and, no offer, agent or other representative of the Insurers shall have the power to waive or bedeemed to have waived any provision or condition of this Declaration of Insurance unless such waiver, if any, shall be written hereon orattached to this Declaration of Insurance nor shall any privilege or permission affecting the insurance under this Declaration ofInsurance exist or be claimed by the Insured unless so written or attached.

$2,000,000 NIL

Program Annual General Aggregate $10,000,000

$71,364.93

$11,894.15

$11,894.15$4924.90

$1,969.96

$1,641.63

$1,313.31

$1,313.31

$4,278.66

$88,390.70

$1,969.96

$2,500.00

Not Insured

$2,296.44

Not Insured

$4,796.79

$4,248.53

$532.61

$215,330.02


CD09711199 issued by the insurers indicated above to

CD09711199

September 28, 2018


Insured Name: «nmleg1» «nmleg2» «nmleg3»

Policy Period: Effective Date: «defeffective» 12:01 a.m. Expiry Date: «defexpire» 12:01 a.m. Certificate Number «CUSTNUM»-«HCSnum»

«cname»«searchname» «custnumDate Issued: «sysdate» Page 1



187707 - LHC039(0001) -

349 Wharncliffe Road London, ON N6G 1E5

Non-Combustible 145 $16,002,608 $151,598 $286,000 $8,800

12 months

Page 1 of 6

$25,000 $25,000 $25,000

London & Middlesex Housing Corporation September 28, 2018

187707

Not Insured Not Insured

NoYes

NoNo

(0002) -

30 Baseline Road West London, ON N6J 1V3

Non-Combustible 251 $27,268,075 $262,421 $872,000 $19,000

12 months

Page 1 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0003) -

170 Kent Street London, ON N6A 1L4

Non-Combustible 212 $25,500,155 $253,011 $715,000 $10,000

12 months

Page 1 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo






187707 - LHC039(0004) -

200 Berkshire Drive London, ON N6J 3R9

Non-Combustible 89 $10,623,408 $93,050 $193,000 $4,500

12 months

Page 2 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0005) -

39 Tecumseh Avenue East London, ON N6C 1R5

Masonry 38 $3,579,505 $39,729 $84,000 $2,500

12 months

Page 2 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0006) -

1194 Commissioners Road London, ON N6K 1C8

Non-Combustible 126 $14,256,008 $131,733 $484,000 $18,900

12 months

Page 2 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo






187707 - LHC039(0007) -

304 Oxford Street West London, ON N6H 1T1

Non-Combustible 109 $11,936,125 $113,960 $310,000 $5,300

12 months

Page 3 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0008) -

345 Wharncliffe Road London, ON N6G 2V3

Non-Combustible 145 $15,923,990 $151,598 $314,000 $6,900

12 months

Page 3 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0009) -

632 Hale Street London, ON N5W 1H5

Non-Combustible 146 $16,100,393 $152,643 $563,000 $17,100

12 months

Page 3 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo






187707 - LHC039(0010) -

872 William Street London, ON N5Y 2S4

Non-Combustible 70 $7,942,008 $74,231 $149,000 $5,000

12 months

Page 4 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0011) -

580 Dundas Street London, ON N6W 1W9

Non-Combustible 151 $14,461,930 $157,871 $309,000 $16,700

12 months

Page 4 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0012) -

136 Albert Street London, ON N6A 1M2

Non-Combustible 82 $9,849,943 $85,731 $190,000 $3,400

12 months

Page 4 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo






187707 - LHC039(0013) -

49 Bella Street Strathroy, ON N7G 3W5

Frame/Brick Veneer 51 $4,673,488 $53,321 $128,000 $2,700

12 months

Page 5 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0014) -

125 Head Street Strathroy, ON N7G 3K6

Frame/Brick Veneer 25 $2,279,703 $26,138 $108,000 $0

12 months

Page 5 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0015) -

249 Ellen Street Parkhill, ON N0M 2K0


12 months

Page 5 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo






187707 - LHC039(0016) -

10 York Street Newbury, ON N0L 1Z0


12 months

Page 6 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0017) -

157 Simpson Street Glencoe, ON N0L 1M0


12 months

Page 6 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0018) -

2061 Dorchester Road Dorchester, ON N0L 1G2

Masonry 16 $2,006,028 $16,728 $71,000 $0

12 months

Page 6 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo






187707 - LHC039(0019) -

1481 Limberlost Road London, ON N6G 2C7

Frame/Brick Veneer 160 $26,269,623 $0 $469,000 $0

12 months

Page 7 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0020) -

961-1183 Huron Street London, ON N5Y 4K5


12 months

Page 7 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0021) -

160-430 Boullee Street London, ON N5Y 1V1


12 months

Page 7 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo






187707 - LHC039(0022) -

1-34 Barberry Court London, ON N5Z 3C4


12 months

Page 8 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0023) -

35-48 Ivy Court London, ON N5Z 3B3


12 months

Page 8 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0024) -

49-81 Vinewood Court London, ON N5Z 3C5


12 months

Page 8 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo






187707 - LHC039(0025) -

82-100 Primrose Court London, ON N5Z 3C6


12 months

Page 9 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0026) -

370 Pond Mills Road London, ON N5Z 3X6


12 months

Page 9 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0027) -

931 -1225 Southdale Road London, ON N6E 1R7


12 months

Page 9 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo






187707 - LHC039(0028) -

243-345 Marconi Blvd London, ON N5V 1A6


12 months

Page 10 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0029) -

152-218 Marconi Blvd London, ON N5V 1A5


12 months

Page 10 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0030) -

25, 45, 94 Court Lane London, ON N5W 5M6

Frame/Brick Veneer 3 $549,195 $0 $10,000 $0

12 months

Page 10 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo






187707 - LHC039(0031) -

120 Tweedsmuir Avenue London, ON N5W 5M3


12 months

Page 11 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0032) -

240 Atkinson Blvd London, ON N5W 4Z6


12 months

Page 11 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0033) -

358 Regal Drive London, ON N5Y 1J4


12 months

Page 11 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo






187707 - LHC039(0034) -

201 Fairway Avenue London, ON N5W 1J2


12 months

Page 12 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0035) -

1487, 1489, 1495, 1497 Perth Avenue London, ON N5V 2M6


12 months

Page 12 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0036) -

205 Cairn Avenue London, ON N5Z 3W6


12 months

Page 12 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo






187707 - LHC039(0037) -

28 Cornish Street London, ON N5W 4M3


12 months

Page 13 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0038) -

193 Burnside Drive London, ON N5V 1B8


12 months

Page 13 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0039) -

7 & 9 Tucker Street Newbury, ON N0L 1Z0


12 months

Page 13 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo






187707 - LHC039(0040) -

28, 30 York Street Newbury, ON N0L 1Z0


12 months

Page 14 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0041) -

23, 25 Broadway Street Newbury, ON N0L 1Z0


12 months

Page 14 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0042) -

346-350 Penny Lane & 351-373 Penny Lane (N7G 3P7) Strathroy, ON N7G 3P6


12 months

Page 14 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo






187707 - LHC039(0043) -

85 Walnut Street London, ON N6H 4P3

Non-Combustible 232 $27,356,225 $242,556 $693,000 $42,300

12 months

Page 15 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0044) -

241 Simcoe Street London, ON N6B 3L4

Non-Combustible 217 $23,672,683 $226,874 $448,000 $15,100

12 months

Page 15 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

(0045) -

202 McNay Street London, ON N5Y 4X1

Non-Combustible 252 $26,680,238 $263,466 $907,000 $19,700

12 months

Page 15 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo






187707 - LHC039(0046) - - Office

379 Dundas Street, Suite 207 London, ON N6B 1V5

Non-Combustible 1 $0 $710,835 $0 $0

12 months

Page 16 of 6

$25,000 $25,000 $25,000


187707


NoNo

NoNo

(0047) -

551-605 Millbank Drive London, ON N6E 1R7


12 months

Page 16 of 6

$25,000 $25,000 $25,000


187707


NoYes

NoNo

Insured Name:

Policy Period: Effective Date: 12:01 a.m. Expiry Date: 12:01 a.m. Certificate Number

Date Issued:


November 1, 2018 November 1, 2019 187707 - LHC039

September 28, 2018 Page 1London & Middlesex Housing Corporation 187707 -LHC039

49 Bella Street Strathroy, ON N7G 3W5

Scotia Mortgage Corporation c/o The Bank of Nova Scotia 20 Queen Street West 4th FloorToronto, ON M5H 3R3

Mortgagee and Loss Payee, as their interest may appear.

LONDON MIDDLESEX HOUSING CORPORATIONBREAKDOWN OF PREMIUMSINSURANCE RENEWAL FOR NOVEMBER 1, 2018 TO NOVEMBER 1, 2019

PREMIUMS PST (8%) TOTAL

Property $112,793.31 $9,023.46 $121,816.77Property - 1st Excess $11,996.00 $959.68 $12,955.68Smart Burner Credit ($13,941.84) ($1,115.35) ($15,057.19)

General Liability $90,890.70 $7,271.26 $98,161.96General Liability - 1st Excess $9,870.00 $789.60 $10,659.60Umbrella Liability $4,796.79 $383.74 $5,180.53

Crime / Crime Money & Securities $4,248.53 $339.88 $4,588.41

Boiler & Machinery $4,278.66 $342.29 $4,620.95

Directors & Officers $532.61 $42.61 $575.22Misc E&O Insurance $2,296.44 $183.72 $2,480.16

Contribution to HSC's Property Claims Trust Fund $236,116.98 $18,889.36 $255,006.34

TOTAL PREMIUMS $463,878.18 $37,110.25 $500,988.43

TOTAL INVOICED $463,878.18 $37,110.25 $500,988.43


Finance & Audit Committee MeetingOctober 17, 2018 Page 1 of 3

STAFF REPORT 2018- 31

TO: Members of the Finance & Audit Committee for the meeting of October 17, 2018

FROM: Jody Cuylle, Manager of Finance

SUBJECT: ADJUSTED JUNE 2018 CAPITAL WORKS REPORT

RECOMMENDATION:

That, on the recommendation of the Manager of Finance and Manager of Capital Projects &Construction with concurrence of the Chief Executive Officer, the Finance & Audit Committee

A) APPROVE the 2018 budget additions for two projects totaling $200,000 to be fundedthrough the City of London capital budget

B) APPROVE the 2017 budget adjustment for unbudgeted spend in the current year onpreviously closed capital projects totaling $83,700 to be funded through the City ofLondon capital budget

C) RECEIVE the SHARP/SHIP/SHAIP update, APPROVE the unbudgeted spend of$595,743 to be funded by SHARP/SHIP and if not, by the City of London capital budgetand APPROVE the transfer of $490,811 of 2016 capital spend from the City of Londoncapital budget to the SHARP budget

D) FORWARD the Adjusted June 2018 Capital Works Report to the Board for approvalE) FORWARD the 2018 Capital Budget update to the board for approval

BACKGROUND:

The following report offers a high-level and detailed analysis of LMHC’s Adjusted June 2018Capital Works results.

ANALYSIS:

2018 Capital Budget Additions

Two unbudgeted projects totaling $200,000 for IT infrastructure and consulting services tosupport the development of LMHC’s asset management plan (AMP) have been added to thecapital works report.

LMHC incurs hardware and software update costs routinely and is requesting a 2018 budgetapproval of $175,000 to cover these costs. A recent example is the required to replacement ofa server after the current server failed leaving LMHC vulnerable to data loss.

Item 9BEnclosure 2


Staff are also recommending that the Housing Services Corporation (HSC) be engaged toprovide consultation services on the Asset Management Plan (AMP) relating to riskmanagement and service levels. This will support the overall objective of an AMP to maximizebenefits of the asset, manage risk, and provide satisfactory levels of service to the public in asustainable manner by transferring the risk and cost of mitigation to a sophisticated third partythat gives credibility to the plan. Staff are recommending the cost be funded using LMHC’sregular capital reserve as and eligible capital expenditure based on the City of London CapitalReserve Guide. The total cost of the consultation is estimated at $25,000.

2017 Capital Budget Adjustment

LMHC is requesting the approval of a capital budget of $83,700 to cover the costs incurred on10 capital projects that were previously considered closed and therefore not included in theoriginal budget for 37 capital projects totaling $6,635,586. There are no additional costsexpected on these capital projects.

SHARP/SHAIP Update

LMHC received a letter on October 3, 2018 from the Service Manager in regards to the SHARPProject Closure and SHAIP Project Plans which is attached for review.

In summary, a total of $2,202,798 was expended on three (3) separate projects, including 580Dundas Boiler Room Upgrade, 580 Dundas Window & Door Replacement and 30 Baseline WWindow & Door Replacement. A project summary and all invoices were forwarded to theService Manager on October 10, 2018 in advance of the required deadline of October 12, 2018.Closure of SHARP is subject to the Service manager review and confirmation. The SHIPproject will be reviewed with the Service Manager upon completion of the SHARP projectfinalization. Both programs are also subject to review and audit by the Ministry of MunicipalAffairs and Housing. A total of $595,743 was spent above the previously approved budget.LMHC is asking the board to approve the additional capital spend to be included in theSHARP/SHIP project funding and if not, to be covered by the City of London capital budget. In2016 a total of $490,811 was spent on the 580 Dundas Boiler Room Upgrade and projectmanagement which was funded by the City of London capital budget. LMHC is requesting thatthe funding is transferred from the City of London capital budget to the SHARP funding.

The SHAIP project is in the planning stage. Staff have compiled a list of projects based on theprogram guidelines for submission and review by the Service Manager. LMHC will be meetingwith the Service Manager on October 24, 2018 to review potential projects to ensure SHAIPproject work plans are submitted to the Ministry by the December 3, 2018 deadline.

Capital Works Report

LMHC is currently forecasting to spend $694,631 more than the approved budget of$6,635,586. This includes the two 2018 project additions and the ten 2017 budget adjustmentsdiscussed above, for a total of 49 approved projects. The majority of the over spend is withinthe SHIP/SHARP funding buckets and is expected to be covered by the respective programs.LMHC is currently in discussion with the Service Manager confirming reimbursement of totalcosts. Although the forecasted spend is higher than the approved budget there is room in thecapital reserve to cover these additional costs.

LMHC’s 2018 City Funded Capital Program has a total forecast of $3,995,433 for open projectswhich includes $283,629 of budget additions/adjustments requested above. Of the previouslyapproved budget of $3,749,802 the expected spend is $37,999 lower than budget. As of June30, 2018, $430,401 has been spent and an additional $939,434 of spend has been committed.

Item 9BEnclosure 2


The remaining forecasted spend is anticipated but not yet committed.

LMHC’s SHIP/SHARP Funding Capital Program has a total forecast of $3,481,527 which is$595,743 higher than the approved budget. As of June 30, 2018 $3,400,998 has been spentand an additional $80,529 of spend has been committed. There is no additional spendanticipated for the SHIP and SHARP projects.

2019 Capital Works Budget Update

LMHC is in and advanced planning stage to provide a draft 2019 capital for the November 6,2018 Finance & Audit Committee meeting. In additional to the regular 2019 planning, staff willbe preparing a reserve list of projects for consideration in the event that projects come in underbudget or additional funding sources are secured. This will allow staff to mobilize quickly andtake advantage of the additional funding without unnecessary delays.

CONCLUSION:

LMHC continues to monitor and manage capital spend and cash flow closely in order to helpmitigate any unexpected or unbudgeted costs. The projected over spend on City of Londonfunded projects is not material and can be covered by the remaining funds in the capitalreserve. Staff have identified a potential of $1,157,537 of City of London capital funding thathas not been previously allocated to projects and are working with the City of London to ensurethis money is available for spend before allocating to new projects. Staff have also done asignificant work on the 2019 Capital Works Budget and reporting structure, which will providemore transparency and assist the Finance & Audit Committee in fulfilling its oversightresponsibility.

PREPARED and SUBMITTED BY: PREPARED and SUBMITTED BY:

JODY CUYLLEMANAGER OF FINANCE

MATT BYLMANAGER OF CAPITAL PROJECTS &CONSTRUCTION

REVIEWED and CONCURRED BY:


Attachments:Appendix 1: Adjusted June 2018 – Capital Works PlanAppendix 2: Letter from Service Provider on SHARP program

Item 9BEnclosure 2

London & Middlesex HousingCapital Works Summaryas at June 30, 2018

City of London Funding Open Projects

Funding Source Q1 ForecastTotal Spend in

2017YTD Spend in

2018 CommittedNon-

Committed

Total Adj Forecasted

Spend

Current Forecast -

Project Comp Better (Worse) Notes 2017 Budgeted 810,128 41,713 170,733 548,739 - 548,739 761,185 48,943 Mainly due to $20k Bella surveillance, and $20k Fire Panel Replacements2018 Budgeted 2,939,674 - 134,326 359,892 2,456,401 2,816,293 2,950,618 (10,944) Mainly due to LEAC Shield projectCity Funded 3,749,802 41,713.05 305,059 908,631 2,456,401 3,365,032 3,711,804 37,999

Budget Request 283,700 962 82,668 30,793 169,207 200,000 283,629 71 $200,000 budget ask for new 2018 projects and remaining budget approval for spend on previously closed capital projects (previously budgeted)

Revised City Funded 4,033,502 42,675 387,727 939,424 2,625,607 3,565,032 3,995,433 38,069

Reconciliation of Funding Available2017 Funding Available 1,376,665 2018 Funding Available 2,708,350 2016/2017 SHARP funding return to City of London reserve 490,811 Note 1Total Funding Available 4,575,825

Unallocated Funding 1,010,794

Special Open Projects

Funding Source Q1 ForecastTotal Spend in

2017YTD Spend in

2018 CommittedNon-

Committed

Total Adj Forecasted

Spend

Current Forecast -

Project Comp Better (Worse) Notes

SHIP 1,314,623 872,974 840,127 - - - 1,713,101 (398,478) Mainly due to $343k Fire Panel Updates not included in original budget & $59k on Fire Damper Phase II. To be confirmed with Service Manager.

SHARP 1,571,161 136,953 1,550,944 80,529 - 80,529 1,768,426 (197,266) Note 2SHAIP - - - - - - - - Total Special Project 2,885,784 1,009,927 2,391,071 80,529 - 80,529 3,481,527 (595,743)

Total Ex. Budget Request 6,635,586 1,051,640 2,696,130 989,160 2,456,401 3,445,561 7,193,331 (557,745) Total Budget Request 283,700 962 82,668 30,793 169,207 200,000 283,629 71 Revised Total 6,919,286 1,052,602 2,778,798 1,019,953 2,625,607 3,645,561 7,476,960 (557,674)

- - - - - - - -

Note 1 - Reserve increaseIn 2016 when the Dundas boiler project commenced there was uncertainty on if the project was included in the SHARP program. At that time it was decided that the costs would be billed through our City of London capital funding. During the close out process of the SHARPprogram it was determined that the boiler project was part of the SHARP program and consequently we have asked for those funding dollarsto be reimbursed to our City of London capital funding reserve $(434,371) as the costs will be covered by the SHARP funding.

In addition to the change required for boiler project during the close out process for SHARP it was determine that there were a few invoices ($56,439)related to the project management of the SHARP project that were also invoiced to our City of London capital funding reserve and we have requestedthat those dollars are also reimbursed as they will be covered by the SHARP funding.

Note 2: SHARP Reconciliation

Dundas & Baseline Window/Door 1,768,426 -see total aboveDundas Boiler - completed in 2016 434,371 Total SHARP Project Costs 2,202,798

Total Paid from SHARP Funding 1,711,987 Total Paid from City Funding 490,811 -reallocation required from City Funding to SHARP FundingTotal Payments 2,202,798


London & Middlesex Housing Corporation: 2018 Capital Works Plan @ June 30, 2018Actuals Future Spend Forecast Better (Worse)

Project # Project TypeBudget

YearFunding Priority Property Project Description

Q1 Reported Budget

Spent in 2017

Spent in 2018

Committed Non-

Committed

Total Future Spend

Expected Total Spend

Forecast/ Budget vs.

Expected Total Spend

Comments

2017 and Older2016-0029 Building Ext. 2017 C-17 D 202 McNay Street, London Balcony Restoration 35,000 224 - 40,121 - 40,121 40,345 (5,345) 2017-0038 Building Ext. 2017 Budget Request N/A 10 York Street Shingle Roof replacement 54,900 - 54,836 - - - 54,836 64 2017-0047 Building Ext. 2017 C-17 D 345 Wharncliffe Rd., London Elect. Rm. Roof Replacement 9,628 - - 9,792 - 9,792 9,792 (164) 2017-0046 Building Int. 2017 Budget Request N/A Huron Street Exterior lights 6,000 - 5,994 - - - 5,994 6 2017-0027 Building Int. 2017 C-17 D 345/349 Wharncliffe Rd., London Access Security Upgrades 25,440 - - 18,251 - 18,251 18,251 7,189 New fob entry system to increase building security2017-0052 Building Int. 2017 C-17 D / E Various High-rise, London Elevator Upgrades 207,000 25,583 - 186,224 186,224 211,806 (4,806) Expected improvements in reliability and energy efficiency2017-0037 General 2017 Budget Request N/A Marconi Marconi Barrier Free Renos 800 - 767 - 767 33 2017-0040 Mechanical 2017 Budget Request N/A 170 Kent Street MUA Replacement 6,300 - 6,289 - - - 6,289 11 2017-0005 Mechanical 2017 C-17 D 30 Baseline Road, London MUA Replacement 109,140 1,061 107,063 1,973 - 1,973 110,097 (957) 2017-0049 Mechanical 2017 C-17 A /D 30 Baseline Rd., London Fire Panel Replacement 45,000 - 3,302 33,307 - 33,307 36,609 8,391 2017-0050 Mechanical 2017 C-17 A / D 200 Berkshire Dr., London Fire Panel Replacement 45,000 - 1,409 33,307 - 33,307 34,716 10,284 2017-0051 Mechanical 2017 C-17 D 241 Simcoe St., London DHW Boiler Upgrades 175,000 - 14,597 149,712 - 149,712 164,310 10,690 2017-0031 Safety Features 2017 C-17 D 136 Albert Street, London Garbage Coll. Upgrades 25,440 13,498 - 8,476 - 8,476 21,973 3,467 2017-0032 Safety Features 2017 C-17 D 872 William St., London Garbage Coll. Upgrades 50,000 1,348 7,098 42,728 - 42,728 51,174 (1,174) 2017-0053 Safety Features 2017 C-17 A / D 49 Bella St., Strathroy Surveillance System 40,000 - 15,677 4,119 - 4,119 19,796 20,204 2017-0048 Safety Features 2017 C-17 A 30 Baseline Rd, London Garbage Chute Replacement 43,480 - 21,587 20,730 - 20,730 42,317 1,163 2016-0006 Mechanical Older Budget Request N/A Various Fire Dampers (5,600) (5,617) - (5,617) 17 2016-0011 Safety Features Older Budget Request N/A 580 Dundas Street Locking System Upgrade 19,200 962 18,262 - 19,224 (24) 2016-0003 Site Work Older Budget Request N/A Boullee Street Stoops 2,100 - 2,137 - - - 2,137 (37) SHIP & SHARP - 2017-0001 Building Ext. 2017 SHARP D 580 Dundas St., London Ext. Windows & Doors 758,589 23,319 689,451 28,787.49 28,787 741,558 17,031 2017-0011 Building Ext. 2017 SHARP D 30 Baseline Rd., London Exterior Windows & Doors 812,572 26,428 784,806 51,741.67 51,742 862,976 (50,404) 2017-0001 Building Ext. 2017 SHARP D 580 Dundas St., London Ext. Windows & Doors - Admin Costs 43,603 38,344 - 81,947 (81,947) 2017-0011 Building Ext. 2017 SHARP D 30 Baseline Rd., London Exterior Windows & Doors - Admin Costs 43,603 38,344 - 81,947 (81,947) 2017-0020 Electrical 2017 SHIP N/A 580 Dundas St Fire Panel Upgrades 287,440 17,101 - 304,541 (304,541) 2017-0021 Electrical 2017 SHIP N/A 202 McNay Street Fire Panel Upgrades 1,868 37,342 - 39,210 (39,210) 2017-0008 Building Ext. 2017 SHIP N/A 345/349 Wharncliffe Balcony Restore 73 - 73 (73) 2017-0019 Building Ext. 2017 SHIP D 136 Albert Street, London Roof Replacement 372,123 32,603 335,545 - - 368,148 3,975 $167,761.66 from SHIP2017-0007 Safety Features 2017 SHIP A Various High Rise, London Fire Dampers Phase II 942,500 13,731 11,197 - - 24,928 917,572 Net overage of $58k2017-0007a Safety Features 2017 SHIP A Group 1 (Berkshire, Commissioners, McNay) Fire Dampers Phase II 30,381 205,828 - 236,209 (236,209) Net overage of $58k2017-0007b Safety Features 2017 SHIP A Group 2 (Hale, Kent, Oxford, William) Fire Dampers Phase II 160,609 193,296 - 353,905 (353,905) Net overage of $58k2017-0007c Safety Features 2017 SHIP A Group 3 (345/349 Wharncliffe, Albert) Fire Dampers Phase II 346,342 39,745 - 386,087 (386,087) Net overage of $58k2018 - - 2018-0014 Building Ext. 2018 C-18 D Southdale Rd Townhomes, London Exterior Windows & Doors 612,595 - 13,068 599,527 612,595 612,595 - vfa action year 2020, energy rebates available 2018-0015 Building Ext. 2018 C-18 D Boullee St, London Exterior Windows & Doors 518,976 - 11,289 507,687 518,976 518,976 - vfa action year 2017, energy rebates available2018-0016 Building Ext. 2018 C-18 D 136 Albert St, London Suite Lock System 40,704 - - 40,704 40,704 40,704 - operational effectiveness and safety of tenants2018-0017 Building Ext. 2018 C-18 D 49 Bella St, Strathroy Sidewalk Repairs 10,176 - - 10,176 10,176 10,176 - safety concerns with existing walkway2018-0004 Building Int. 2018 C-18 D Various Universal Access Upgrades 133,346 27,997 5,339 100,010 105,350 133,346 - Unit modifications due to accommodate medical disability2018-0005 Building Int. 2018 C-18 D Family Sites Bathroom Rebuilds 50,880 4,163 46,717 46,717 50,880 - Bathroom rebuilds at family sites2018-0006 Building Int. 2018 C-18 D All Unit Flooring/Move out Capital 213,687 102,166 111,522 111,522 213,687 - Flooring replacements at all sites2018-0007 Building Int. 2018 C-18 D 580 Dundas St & 345/349 Wharncliffe Rd Front Entrance Upgrades 40,704 - - 40,704 40,704 40,704 - Upgrades to promote safety and positive impact on tenants2018-0008 Building Int. 2018 C-18 D 85 Walnut St, London Lounge Upgrades 30,528 - - 30,528 30,528 30,528 - Upgrade kitchen and flooring2018-0009 Building Int. 2018 C-18 A / C Marconi Blvd Semis Exterior Lighting Upgrade 5,088 - - 5,088 5,088 5,088 - ESA code requirement2018-0010 Building Int. 2018 C-18 A / D 241 Simcoe St, London Elevator Modernization 81,408 - 68,552 12,856 81,408 81,408 - Replace major components including controller and drive2018-0018 Electrical 2018 C-18 A 345 Wharncliffe Rd N, London Fire Panel Upgrades 62,161 - - 62,161 62,161 62,161 - vfa action year 2016, life safety system2018-0019 Electrical 2018 C-18 A 304 Oxford St, London Fire Panel Upgrades 62,161 - - 62,161 62,161 62,161 - vfa action year 2017, life safety system2018-0020 Electrical 2018 C-18 D High Rise Sites Electrical Systems Review 38,832 - - 38,832 38,832 38,832 - Thermographic scan and assessment of all high rise sites2018-0023 General 2018 C-18 A / D Various High Rise Technology Contingency 152,640 - 73,434 79,206 152,640 152,640 - funds allocated for major repairs / maintenance to elevators2018-0011 Mechanical 2018 C-18 D 85 Walnut St, London MUA Replacement 133,033 - 18,438 114,595 133,033 133,033 - vfa action year 20182018-0012 Mechanical 2018 C-18 D 202 McNay St, London MUA Replacement 133,695 - 18,438 115,257 133,695 133,695 - vfa action year 20182018-0013 Mechanical 2018 C-18 D Various High Rise Sites LEAC Shield 61,056 - - 72,000 72,000 72,000 (10,944) pipe lining to prevent pin hole leaks and extend life of pipe2018-0022 Regulated Changes2018 C-18 C Various Sites Asbestos Re-assessment 17,299 - - 17,299 17,299 17,299 - legislated annual requirement2018-0021 Safety Features 2018 C-18 D 39 Tecumseh Ave, London Surveillance System 40,704 - 24,767 15,937 40,704 40,704 - many social and safety issues at Tecumseh2018-0003 Site Work 2018 LDN A / D All Exterior Lighting Redesign Project 500,000 - - 126,567 373,433 500,000 500,000 - Phase 1 of $1,000,000 lighting redesign at all LMHC sites2018 - Other -

IT 2018 Budget Request Corporate OfficeTech Support - Software/Hardware Upgrades 175,000 30,793 144,207 175,000 175,000 - Old server failed

AMP 2018 Budget Request Corporate Office Asset Mgmt Plan - HSC Consult 25,000 25,000 25,000 25,000 - Project Initiation, lifecycle mgmt, level of serviceTotals 6,919,286 1,052,602 2,778,798 1,019,953 2,625,607 3,645,561 7,476,960 (557,674)

Total Future Spend (Ex. Special Projects) 3,565,032

Funding Legend 2017 Residual Capital 1,376,665 C-17 - Capital Funding 2017 2018 Capital Budget Allocation 2,208,350 C-18 - Capital Funding 2018 Miscellaneous Funding (Incentives etc.) 500,000 SHP - Social Housing Improvement Program Funding (SHIP) SHARP Project Reallocation 490,811 SRP - Social Housing Apartment Retrofit Program Funding (SHARP) 2018 Capital Funding Available 4,575,825 LDN - Special Funding from City of London

Remaining Capital to be Allocated 1,010,794


355 Wellington Street

Suite 248, 2nd FloorLondon, ONN6A 3N7

October 3, 2018

Josh Browne, CEOLondon Middlesex Housing Corporation (LMHC)1299 Oxford Street East Unit 5C5London, ON N5Y 4W5

Re: SHARP Project Closure and SHAIP Project Plans

The Housing Division has been in several conversations with the Ministry of Housing (MOH) over thelast several months regarding the progress of LMHC’s Social Housing Apartment Retrofit Program(SHARP) activities specifically related to the delay in finalizing the project completion of 580 DundasStreet and 30 Base Line Road West. As communicated by the Ministry, SHARP projects were expectedto be completed as of March 31, 2018, however, the Ministry of Housing has been very accommodatingand provided several extensions.

In the most recent discussion between the Housing Division and the Ministry, the Ministry has requestedthat all outstanding SHARP documentation is to be received no later than October 12, 2018. This isthe final extension the Ministry is providing. The Ministry has confirmed that any financial informationsubmitted after October 12, 2018 will not be covered by SHARP funding. Project costs not covered bythe Ministry’s SHARP funding will not be covered by the Service Manager. Currently there areoutstanding invoices in the amount of approximately $592,000 to be received by the Service Manager.This represents a significant financial amount and therefore represents a significant financial risk. Thissituation not only represents a financial risk for LMHC, the Service Manager, other Social HousingProviders and the broad community but also impacts the Service Manager’s relationship with theMinistry.

In addition, the Ministry is very concerned about a similar situation occurring with futureprojects/initiatives and most notably with the limited progress with the Social Housing ApartmentImprovement Program (SHAIP). Based on conversations with the Ministry of Housing, SHAIP fundingmay be in jeopardy as a result of the SHARP project delays and the limited SHAIP activities.

As a result, the Ministry requires the Service Manager to submit SHAIP project work plans byDecember 3, 2018. If project work plans are not received by December 3, 2018, the Ministry will beginthe process of allocating the City’s SHAIP allocation of $5,648,636 to other Service Managers.

Therefore as a result, I am requesting a written response from LMHC acknowledging the above noteddue dates along with the Board’s response to the situation.


Regards,

Dave Purdy, CPA, CGA Manager, Housing Services

Housing, Social Services & Dearness City of London

355 Wellington Street, Suite 248, 2nd Floor, London ON N6A 3N7 P: 519.661.CITY(2489) x 5596 | Fax: 519.661.5804 [email protected] | www.london.ca

cc: Tony Brutto, Regional Housing Team Lead, Ministry of Municipal Affairs and Housing London

Lou Di Palma, Account Manager Housing Programs, Ministry of Housing


http://www.london.ca/

LMHC Board of Directors Meeting Page 1 of 3 July 19, 2018

STAFF REPORT 2018 – 23

TO: Members of the Board of Directors

FROM: Norm Turner, Director of Asset Management

SUBJECT: Potential Development of Healthzone Clinic, Community Space and RentalUnits at Southdale Road, London

RECOMMENDATION:

That, on the recommendation of the Director of Asset Management Staff with the concurrence

of the Chief Executive Office, the following actions BE TAKEN with respect to the potential

Development of Healthzone Clinic, Community Space and Rental Units at Southdale Road

London:

a) The Board ENDORSE the exploration with the “Healthzone” the possibility of

developing a clinic with additional space for community uses and 2nd floor residential

components at the site of the former units at Southdale Road lost to fire

b) Staff BE DIRECTED draft a letter of cooperation providing sufficient to allowHealthzone to explore funding availability for rent and staffing to facilitate theinformal and non binding initial exploration

BACKGROUND:

Healthzone currently occupy a converted town home at the Southdale complex and a second

unit at Alan Rush Gardens. Additionally, three (3) units at Southdale are occupied by the

Chaplaincy, LMHCs Client Relation Worker (CRW) and Recreation Unit.

The Healthzone have approached LMHC to discuss a purpose built facility located at the front of

the site to replace their two existing locations.

This project would provide much better space for Healthzone and significantly improve services

to our residents and the community as a whole. By relocating other ancillary uses within the site

a further three (3) units (subject to the cooperation of the Chaplaincy) could also be returned to

rental stock.

ADVANTAGES:

• Significant improvements in Community Health and Pastoral Care for the residents

• Potential for a much needed Community Centre for the Southdale Community

• Significantly improved programming capability for Healthzone, LMHC, Chaplaincy

• Utility Office available for individual partners to offer programming

• Re-use of a former residential site

• Development of a number of new dwellings broadening our offerings

Item 9DEnclosure 1


• Replacing the units lost to fire and those potentially to be removed from stock for the

“Safe Consumption Facility” at Simcoe Gardens

• Showing a small net gain in unit count (possibly 4 depending on design)

• Providing an opportunity for a future phase of development with shared infrastructure

and development costs.

• Exploit the opportune timing aligning to provide impetus to the potential project.

KEY OBJECTIVES & SUCCESS POINTS:

• An opportunity to “give back to our Southdale community” providing community space

and facility in a community that will keenly feel the loss of the playground facility having

already lost one previously.

• Potential venue for critical social programing such as youth club and potential

community based activities (mother and toddler clubs, etc.)

• To further energize what is becoming a very active community association (currently

very loosely formed) and leverage our planned improvements to windows and doors

together with improved lighting and security to potentially transform the community.

• Provide a lower risk and grounded project to begin cooperation with HDC.

• To provide a concrete project that leverages and exemplifies the changes requested to

our shareholder agreement and demonstrates “what we can do” with the increased

latitude.

• To build LMHC cultural and technical capacity to develop mixed use and residential

properties in a modest and lower risk project and avoid bluntly “biting off more than we

can chew”

• Provide a “process laboratory” so that with HDC the Corporation can navigate and

create the processes to work with the “repeat partners” including the City, Shareholder,

CMHC and local stakeholders and community groups.

• Although the threat of NIMBY - ism is considered low in this instance a less contentious

project will enable the consultation and engagement process around future projects to

be honed and developed.

RISKS AND MITIGATION:

At this stage, any understanding would be extremely informal and would largely serve to just

manage expectations and note the potential issues that could arise that might derail the

potential cooperation.

This would include:

• Consent of LMHC’s board to pursue a discussion

• Consent of LMHC’s board to proceed with the project

• Operational funding being obtained by Healthzone

• Consent of the LMHC Shareholder

• Ability of LMHC to fund (including a mixture of grants and mortgage)

• Zoning

• Design and composition being agreed by all parties

• Satisfactory legal agreement and lease terms

Item 9DEnclosure 1


STRATEGIC ALIGNMENT:

The potential for this project is exciting because it “ticks” a number of boxes which are

fundamental to the new National Housing Strategy led programs being developed by CMHC but

more critically it aligns closely with a number of key strategic goals outlined in LMHC’s Strategic

plan including:

Improve, Renew and Maintain the Homes that we offer

• Develop an asset strategy with the intent to have “a shovel in the ground”

• Improve building conditions to make them more functional

Engage, Support & Empower Tenants

• Create tenant and housing stability by investing in support systems that will address themultiple complex needs of tenants

• Create a Tenant engagement strategy

• Expand and improve tenant communication channels

Crucially the project if successful would precisely align with our Vision Statement:

“We envision healthy homes and communities in London and Middlesex. Leading by example, LMHC will help make a difference and positively impact lives using housing as the foundation”

PREPARED and SUBMITTED BY: REVIEWED and CONCURRED BY:

MATT BYLCONSTRUCTION MANAGER


Attachment - First draft of letter of comfort/cooperation to Healthzone.

Item 9DEnclosure 1

Board Members: AGENDA LONDON & MIDDLESEX HOUSING ... · 12) Report on In Camera Matters S. Quigley...

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Transcript of Board Members: AGENDA LONDON & MIDDLESEX HOUSING ... · 12) Report on In Camera Matters S. Quigley...