Report to/Rapport au :

 

The Shareholder of the Ottawa Community Housing Corporation/

Actionnaire de la Société de logement communautaire d’Ottawa

 

26 May 2010/le 26 mai 2010

 

Submitted by/Soumis par :

 

Councillor Diane Holmes, Chair, Ottawa Community Housing Corporation Conseillère Diane Holmes, Présidente  du conseil d’administration de la Société de logement communautaire d’Ottawa

 

and / et

 

Jo-Anne Poirier, Chief Executive Officer, Ottawa Community Housing Corporation/présidente-directrice générale de la Société de logement communautaire d’Ottawa

613-520-2271

 

 

                            Ref N°:ACS2010-OCH-0002

 

 

SUBJECT:

OTTAWA COMMUNITY HOUSING CORPORATION ANNUAL REPORT AND ANNUAL GENERAL MEETING OF THE SHAREHOLDER

OBJET:

RAPPORT ANNUEL ET ASSEMBLÉE GÉNÉRALE ANNUELLE DE LA SOCIÉTÉ DE LOGEMENT COMMUNAUTAIRE D’OTTAWA

 

REPORT RECOMMENDATIONS

 

That Council approve:

 

1.         That the 2009-2010 Ottawa Community Housing Corporation (OCHC) Annual Report be received.

 

2.         That the Audited Financial Statements of Ottawa Community Housing Corporation (OCHC) for the year 2009 be received.  (Attachment 1)

 

3.         That the Update re: the 2008-2011 Ottawa Community Housing Corporation (OCHC) Strategic Plan be received.

 

4.               That Ernst and Young be appointed as the Auditors of Ottawa Community Housing Corporation (OCHC) for the year 2010.

 

5.               That Council direct City staff to bring forward a report to Community and Protective Services Committee and City Council in June, 2010 regarding the provision of a Municipal Guarantee to support OCHC’s loan application to Infrastructure Ontario. (Attachment 2) 

 

6.               That report OCHC-013/10 be received appointing Ms. Sarah Kambites to the Board of Directors as a Community member, replacing Mr. Jay Zakaib. (Attachment 3)

 

7.               That the Mayor and the City Clerk be authorized to sign a written resolution on behalf of the City of Ottawa as Shareholder of OCHC setting out the resolutions approved by City Council.

 

RECOMMANDATIONS DU RAPPORT

 

Que le Conseil approuve :

 

1.         Que soit reçu le rapport annuel de 2009-2010 de la Société de logement communautaire d’Ottawa (SLCO);

 

2.         Que soient reçus les états financiers vérifiés de 2009 de la Société de logement communautaire d’Ottawa (SLCO) (Pièce jointe 1);

 

3.         Que soit reçue la mise à jour de 2008-2011 du plan stratégique de la Société de logement communautaire d’Ottawa (SLCO);

 

4.         Que la société Ernst and Young soit désignée vérificatrice de la Société de logement communautaire d’Ottawa (SLCO) pour l’année 2010;

 

5.         Que le Conseil enjoigne le personnel municipal de déposer un rapport au Comité des services de protection et communautaires et au Conseil municipal en juin 2010 concernant l’offre d’une garantie municipale afin d’appuyer la demande de prêt de la Société de logement communautaire d’Ottawa auprès d’Infrastructure Ontario. (Pièce jointe 2) 

 

6.         Qu’il soit pris connaissance du rapport OCHC-013/10 nommant Mme Sarah Kambites au conseil d’administration à titre de membre de la communauté afin de remplacer M. Jay Zakaib. (Pièce jointe 3)

 

7.         Que le maire et le greffier municipal soient autorisés à signer, au nom de la Ville d’Ottawa à titre d’actionnaire de la SLCO, une résolution écrite énonçant les résolutions approuvées par le Conseil municipal.

 

 


BACKGROUND

 

Recommendation 1 (Re: 2009-2010 Annual Report)

 

2009-2010 has been a period of considerable achievements for Ottawa Community Housing Corporation (OCHC).

 

OCHC has continued to invest significantly in time and resources to build upon the five pillars for developing “Healthy Communities”.  The five pillars include:

 

·                     Building and maintaining adequate, appropriate housing stock

·                     Ensuring safety and security

·                     Fostering tenant engagement and commitment

·                     Nurturing community partnerships

·                     Enhancing organizational capacity and effectiveness

 

This year’s Annual Report highlights achievements related to providing the best possible service to all OCHC tenants, as well as celebrating new initiatives and partnerships.

 

Recommendation 2 (Re: 2009 Audited Financial Statements)

 

In accordance with section 11.01 of Ottawa Community Housing Corporation By-Law No. 6, OCHC is required to present its audited financial statements for information to its Shareholder.  The 2009 audited financial statements were approved by the OCHC Board of Directors in May, 2010.  The firm of Ernst and Young are OCHC’s auditors.  Ms. Deanna Monaghan of Ernst and Young attended the May 20, 2010 Finance and Audit Committee meeting to respond to questions and comments.  Ms. Monaghan confirmed to the Finance and Audit Committee that Ernst and Young is independent of OCHC and that the report represented an “unqualified” opinion on the Corporation’s financial statements for the year ending December 31st, 2009. She further stated that Ernst & Young had received a high level of cooperation from staff in carrying out the audit and that significant improvements had been made by OCHC in its financial practices during 2009.

 

The 2009 OCHC audited financial statements are appended to this report as Attachment 1.

 

Recommendation 3 (Re: Strategic Plan Update)

 

A Strategic Plan (2008-2011) was completed and approved by the Board in 2008. This Strategic Plan was circulated to City Council for their information.  The key initiatives continue to be aligned with the direction provided by the Shareholder, responding to concerns related to maintenance standards, community safety and security, and the provision of healthy communities.


The Strategic Plan for 2011-2014 will be developed with the reconstituted OCHC Board of Directors during the spring of 2011.

 

The following sections describe the progress made in the key areas identified within the Strategic Plan.

 

a.      Improve Maintenance and Utilization of Existing Housing         

 

The Building Condition Assessment Study (BCA) was completed in the fall 2008. It provided OCHC with a comprehensive assessment of the entire housing portfolio. Housing units, mechanical systems, building exteriors, and roofs were inspected.  The BCA Study estimated that the cost of deferred maintenance plus capital projects required in 2009 through 2013 would total $332 million (2008 dollars).

 

In 2009 and 2010, OCHC launched the largest Capital Works Program ever undertaken by the corporation, with capital projects valued at $110 million (2010 dollars).  This program was made possible by a series of capital grants totalling $55.6 million under various programs administered by the City of Ottawa (Social Housing Renovation and Retrofit Program (SHRRP) Investing in Ontario, 2008 Capital Grant Funding).  In order to fund the balance of this program, OCHC has depleted capital reserves and is pursuing debt financing from Infrastructure Ontario.

 

In developing capital plans for the immediate future, OCHC considers the specific requirements for one hundred and sixty-two communities. This process continues to be well informed by the BCA as well as consultation with OCHC tenants and site-specific investigations.  A rolling five year Capital Plan is prepared each year.

 

Based on deferred maintenance requirements and repairs that are required in the five year period beginning 2011 through 2015, OCH will need an estimated $305 million in capital funding (2010 dollars) over the next five years. The Corporation is currently reviewing longer term capital requirements, funding requirements that consider grants and annual contributions, and financing options.

 

A Long-Range Financial Plan is being developed to determine the funding requirements to sustain an appropriate capital program. The results will be shared with the Shareholder upon completion. In order to support the 2010 Capital Works Program, OCHC is utilizing all grants received through the Social Housing Renovation and Retrofit Program, all reserve funding, as well as applying for a loan under the Infrastructure Ontario Program (Attachment 2). In order to move forward with further capital repairs, it will require substantial and sustainable funding. The Long-Range Financial Plan will determine future required funding levels.  This information will be shared with City staff upon completion.

 

In 2006, the OCHC Call Centre was implemented on a 24/7 basis in order to respond more effectively to tenant requests for both routine and emergency maintenance services.  The Call Centre also dispatches Community Safety Services and alarm system monitoring. A review of the Call Centre was undertaken in early 2008 and many changes have been made to improve and enhance services to our tenants, including the recruitment of a new Manager, Call Centre, specialized in Call Centre management. During 2008, an interim emergency response plan was developed including comprehensive training for all OCHC staff. This will assist the organization in dealing with emergency situations. It is anticipated that a comprehensive emergency management plan will be completed in the Spring of 2010, ensuring compliance with all relevant legislation.

 

An enhanced maintenance scheduling system has been implemented to provide more efficient and effective maintenance services. A review of this process will be undertaken to enhance its effectiveness and to continue improving services to tenants. Customer service protocols have also been developed in order to respond to tenant feedback and establish response standards.

 

Collaborative efforts continued between senior staff from OCHC and the City which resulted in the development of a new Operating Agreement for the Corporation, specifically for the Public Housing Program and the Municipal Non-Profit program. By early 2009, an Operating Agreement was approved by both the OCHC Board of Directors and City Council. This has assisted with funding levels and the completion of the Long Range Financial Plan will determine further required funding. City staff are participating in this financial planning exercise.

 

b.      Develop New Housing Stock

 

Although there continues to be a well-documented demand for additional affordable housing in the City of Ottawa, all financial resources of the Corporation have been required to address the requirements of the existing portfolio.  As a result, the Community Reinvestment Fund (CRF), established by OCHC to address new housing has been completely depleted.  The operating surplus generated by the Equity Program that has been the source of funding for the CRF continues to be required to fund capital works in the housing stock contained in the Equity Program.

 

OCHC has not abandoned an interest in the development of new affordable housing.  As the Building Condition Assessment study is implemented, site renewal and redevelopment opportunities will be explored. To this end, applications have been submitted under the Affordable Housing Program (AHP) for specific redevelopment initiatives. A response in 2011 is anticipated in order to move forward.

 

c.      Development of Safe and Caring Communities

 

The Safer Communities Program, implemented in 2006, has continued to provide a visible staff presence in OCHC communities, working closely with the Ottawa Police Service and other community partners.

 

 

 

 

 

 

OCHC has received very positive feedback from tenants about the assistance provided by the Community Safety Officers, which has encouraged further tenant engagement through initiatives such as Neighbourhood Watch and the OCHC Healthy Communities Initiative.  OCHC also actively participates in the Community Development Framework (CDF) at the City of Ottawa.  OCHC neighbourhoods in the Carlington, Overbrooke-Forbes and West Centre Town areas are involved in this CDF initiative.  An OCHC Community Safety Steering Committee has been created including the Ottawa Police Service, Ottawa Fire Services, City of Ottawa By-Law services, and OC Transpo. This will ensure ongoing communication and coordination of services in all OCHC communities in order to address safety issues.

 

Through the organizational renewal exercise that began in 2009, all tenant services including Community Safety staff have been integrated within the Tenant Services Department. This has ensured seamless and integrated service delivery to all tenants.

 

 

d.      Increase Tenant Involvement/Empowerment

 

In 2007, the Shareholder approved an enhanced governance structure to align Tenant Associations, District-Based Committees and the Board of Directors.  This resulted in an elected Tenant representative sitting directly on the Board of Directors as a full voting member of the Board.  This tenant representative is the Chair of the Tenant Advisory Group, comprised of eight members who are also part of a District-Based Committee structure.  The District-Based Committees bring together tenant leaders from across OCHC communities, including approximately sixty Tenant Associations.

 

In the fall of 2009, the annual Tenant Forum was held to promote dialogue between tenants and staff and for tenants to participate in workshops to promote leadership capacity and continuous learning.  This Tenant Forum also included tenant volunteer recognition. This forum was highly successful and received very positive feedback from tenants.

 

Efforts are continuing to involve tenants, OCHC staff, and community partners in the Healthy Communities Initiative. In 2008, this approach was piloted at two OCHC communities. This approach has been very successful and is being implemented in several OCHC communities.

 

OCHC staff are also working on an OCHC Partnership Framework to ensure effective partnerships for the benefit of all tenants and communities.

 

e.      Enhance relationship with the Shareholder and the Community-at-Large

 

Members of City Council continue to express their support and commitment to all tenants housed in Ottawa Community Housing. There are four City Councillors who sit on the OCHC Board as well as the Mayor as an Ex-Officio member.

 

Regular meetings also take place with City Councillors whose wards include OCHC communities.

Senior staff worked collaboratively with City staff to develop an Operating Agreement in 2008. This agreement was approved by both the OCHC Board and City Council in early 2009. The relationship continues to be very positive and collaborative.

 

 

f.       Organizational Development

 

An overall organizational renewal exercise was undertaken in mid 2008. This included a review of Technical Services, undertaken by the Auditor General.

 

The organizational renewal exercise included a two year funding and implementation plan, a restructured organization, and additional resources in a few key areas. This plan was approved by the OCHC Board in December 2008. Several business areas continue to be reviewed and reengineered to enhance results.

 

Under the direction of the CEO, five business areas have been created with a view to focus on client services and asset management:

 

1.

TENANT SERVICES

 

Includes district front-line tenant services, 24/7 Call Centre, Community Safety Services

2.

ASSET MANAGEMENT

Focus on physical assets, capital planning and implementation

3.

COMMUNITY DEVELOPMENT

Focus on working with tenants and community partners for safe and healthy communities

4.

CORPORATE SERVICES

Finance, Human Resources, Information Technology, and Purchasing

5.

ORGANIZATIONAL EFFECTIVENESS

Board Secretariat, Performance Management, Organizational Renewal, and Corporate Communications

 

 

Recommendation 4 (Re:  Appointment of Auditors)

 

Part XII subsection 149 (1) of the Business Corporation’s Act, states as follows:

 

“ The Shareholders of a Corporation at their first annual or special meeting shall appoint one or more auditors to hold office until the close of the first or next annual meeting, as the case may be, and, if the shareholders fail to do so, the directors shall forthwith make such appointment or appointments”.

 

Given that Ernst & Young are providing satisfactory service, and they are familiar with the operation of the Corporation, and given that they are auditors for the City of Ottawa, OCHC recommends that the Shareholder approve Ernst & Young as the auditors for OCHC, for the year 2010.

 

 

 

 

Recommendation 5 (Loan Application to Infrastructure Ontario)

 

That Council direct City staff to bring forward a report to Community and Protective Services Committee and City Council in June, 2010 regarding the provision of a Municipal Guarantee to support OCHC’s loan application to Infrastructure Ontario.  (Attachment 2)

 

Recommendation 6 (Re: Election of Director)

 

The Board has elected Ms. Sarah Kambites as Director to the Board, filling the position vacated by Mr. Jay Zakaib. (See Board report OCHC-013/10, Attachment 3)

 

Recommendation 7 (Signing Authority of Mayor and City Clerk)

 

That the Mayor and the City Clerk be authorized to sign a written resolution on behalf of the City of Ottawa as Shareholder of OCHC setting out the resolutions approved by City Council.

 

 

ATTACHMENTS

 

Attachment 1:         Draft Audited 2009 Financial Statements of Ottawa Community Housing Corporation (OCHC) (signed audited statements to be distributed at the meeting)

Attachment 2:         OCHC-041/10 Board report on the Infrastructure Ontario Loan Application – General Security and Municipal Guarantee

 

Attachment 3:         OCHC-013/10 Board report on the Appointment of a New Board Member to the Board of Directors