Board of Governors of Exhibition Place
The full agenda, as filed
All 11 items in the clerk’s order. Each carries the city’s own words: the staff recommendation, what the body decided, and its status. Nothing below is written by us.
EP19.1adopted
Exhibition Place Financial Report - Second Quarter June 30, 2021
This report includes several detailed appendices that provide a full financial summary of all program areas of Exhibition Place for the second quarter ending June 30, 2021.
The Board of Governors of Exhibition Place: 1. Directed that Confidential Attachment 1 to the report (September 14, 2021) from the Chief Executive Officer, Exhibition Place remain confidential as it contains financial information that belongs to the Board of Governors of Exhibition Place and has monetary value or potential monetary value.
Staff recommendation as filed
The Chief Executive Officer, Exhibition Place recommends that: 1. The Board direct that Confidential Attachment 1 to this report remain confidential as it contains financial information that belongs to the Board of Governors of Exhibition Place and has monetary value or potential monetary value.
EP19.2adopted
2022 Proposed Capital Works Budget as Part of Ten-Year (2022-2031) Program
On June 30, 2021, the Executive Director of the City's Financial Planning Division provided the preliminary 2022 Budget Process, Directions, and Guidelines for all City Divisions and Agencies, which is still subject to changes. Exhibition Place worked with the City Financial Planning staff and have developed a Capital Works Budget as part of a Ten-Year Program that meets the City directive. The City practice has recently changed from a set budget based on debt target to a budget based on the organization capacity to spend combined with the City's ability to fund. Annually, staff review the 10-year capital plan; this annual review procedure allows Exhibition Place to adjust its current State of Good Repair program each subsequent year based on changing and operational needs, building assessments, legislative changes, mandates and priorities. Staff have submitted the 2022 Capital Works Budget to City Financial Planning to meet the City Manager September 1, 2021 mandate; however, due to the budget submission schedule, City Financial Planning understand that the budget is subject to Board approval and that the Board reserves the right to make changes to the Capital Works Budget content. Exhibition Place staff will notify the City of any changes or directions made by the Board. In accordance with City guidelines based on capacity to spend, the City's ability to fund, building assessments and State of Good Repair priority, a total of $20.005 million gross is recommended for 2022 Capital budget. This includes $14.850 million for Exhibition Place related infrastructure that is required for the Hotel X Phase 2 construction; which consists of $9.100 million for the relocation of the underground duct bank and the electrical sub-station (with 50 percent cost recoveries from the Tenant, for net City funding amount of $4.550 million); $5.000 million for contaminated soil remediation for which Exhibition Place is responsible under the Phase 1 Lease provisions and $0.750 million for the relocation of sewer pipes. Work for the underground duct back and high voltage work was previously provided for in the ten (10) year State of Good Repair budget as the infrastructure is at end of its useful life; however, with the pending development of the Phase 2 Hotel; these costs are moved up to 2022 due to timing. Included in the $20.005 million is $0.500 million for the relocation of the Garden of Greek Gods sculptures, and $4.655 million for various upgrades within existing buildings. For 2022, the Capital Budget including $4.550 million of recoveries is net $15.455 million all funded by debt. With the additional State of Good Repair for Hotel X Phase II development and on-going COVID-19 funding constraints, Exhibition Place staff work with City Financial Planning to deferred $7.681 million of Capital Projects from our 2022 budget to later years. The total cash flow for Above the Line Capital Program 2022 (Sections A and B in Appendix A), including the new projects is $20.005 million and with the recoveries of $4.55 million, is therefore net $15.455 million. Even with the additional funding being recommended, the Net Accumulated Backlog at the end of 2022 for Exhibition Place stands at $52.716 million.
The Board of Governors of Exhibition Place: 1. Approved the Proposed 2022 Above the Line Capital Works State of Good Repair Budget (Sections A and B of Appendix A to the report (September 14, 2021) from the Chief Executive Officer, Exhibition Place) of $20.005 million, funded by City Debt, as part of the Ten-Year (2022-2031) proposed program submission to the City of Toronto. 2. Directed the Chief Executive Officer, Exhibition Place to submit the State of Good Repair 2022 Budget and any changes or directions by the Board to City of Toronto Financial Planning as part of the 2022 Budget Process.
Staff recommendation as filed
The Chief Executive Officer, Exhibition Place recommends that: 1. The Board approve the Proposed 2022 Above the Line Capital Works State of Good Repair Budget (Sections A and B of Appendix A) of $20.005 million, funded by City Debt, as part of the Ten-Year (2022-2031) proposed program submission to the City of Toronto. 2. The Board direct the Chief Executive Officer, Exhibition Place to submit the State of Good Repair 2022 Budget and any changes or directions by the Board to City of Toronto Financial Planning as part of the 2022 Budget Process.
EP19.3adopted
On June 30, 2021, the Executive Director of City Financial Planning Division provided the preliminary 2022 Budget Process, Directions, and Guidelines for all City Divisions and Agencies for 2022, which is still subject to change. Throughout the budget process, staff have worked closely with industry insiders, followed industry and trade magazines, as well watched closely the re-opening of the trade, consumer show and conference centre business in the United States of America, and the continuing impact of COVID-19. Our 2022 budget considers all these factors as it relates to COVID-19. Staff are cautiously optimistic, but given the year-end 2021 forecasted results, understand that there is still volatility in our economy. City Financial Planning directed Agencies Boards and Corporations to prepare a more realistic 2022 Operating Budget using a budget lens, taking into consideration both 2020 actual and 2021 projected operating results as a guide. As shown in Schedule A, the 2021 year-end forecasted impact of COVID-19 on the Boards 2021 budget is a deficit of ($7.577) million which is unfavourable variance of ($5.088) million for a net deficit of ($12.664) million. Exhibition Place worked with the City Financial Planning staff and have developed an operating budget that meets the City directive. As reported in Schedule A, the operating budget for 2022 is a net deficit of ($3.400) million. The main assumption used in preparing the Operating Budget, is that although there will be volatility and additional costs due to health and safety precautions, our event booking will be back to normal, although there will be anticipated lower attendance impacting ancillary revenue. With respect to the Exhibition Place Conference Centre Reserve Fund, the balance at the end of 2021 is forecasted to be $3.916 million. This reserve is a source of funding for both state of good repair, as well as, for the loan repayment of the Beanfield Centre. In 2021, the draw from the CCRF for City loan payments was $3.600 million; but given its forecasted balance staff will work towards funding these loan payments from operations.
The Board of Governors of Exhibition Place: 1. Approved the 2022 Operating Budget attached as Appendix to the report (September 14, 2021) from the Chief Executive Officer, Exhibition Place. 2. Directed the Chief Executive Officer, Exhibition Place to submit the 2022 Budget to Financial Planning as part of the 2022 Budget Process.
Staff recommendation as filed
The Chief Executive Officer, Exhibition Place recommends that: 1. The Board approve the 2022 Operating Budget attached as Appendix A. 2. The Board direct the Chief Executive Officer, Exhibition Place to submit the 2022 Budget to Financial Planning as part of the 2022 Budget Process.
EP19.4adopted
2021 Operating Budget Financial Impact Update Due to COVID-19
This report provides a further update since June 2021 on the year-end forecast from the impact of COVID-19. Since our June 2021 update, there have been additional cancellations / postponements of events except for film shoots. In addition to cost cutting measures, the Board has experienced additional operational savings, and staff have worked collectively with Toronto Hydro to obtain a one-time hydro rebate for 2018 and 2019. Exhibition Place staff have been in constant communications with the City Manager's Office and the City Financial Planning Department regarding financing opportunities to cover the Board's cash shortfall requirements. The Board's operations are highly dependent on the cash flow and net income from our trade and consumer shows, conferences, conventions, socials, galas, meetings and tenants operations. Since early in 2021, given the rise in concern over COVID-19, staff has been monitoring its cash flow from operations on a daily basis and have put a hold on all non-essential costs and discretionary expenditures such as travel, training, etc. The Board approved 2021 operating budget is a Budget Loss of ($7.577) million. The estimated impact from COVID-19 to the Boards operating budget as at August 31, 2021 is an additional pressure of ($5.087) million for an overall forecasted net loss of ($12.664) million before City funding. The Board's approved 2021 Budget prepared in August 2020 included the assumption that events, as well as, tenants operations would become normal starting to reopen in April 2021, which did not occur. The continued pressure from lost business on the Board's operations and resultant cash flow is a continued concern not only to Exhibition Place, but also to the City of Toronto as the Board operates, manages and maintains Exhibition Place on behalf of the City, and the City is entitled to any surplus resulting from the Board's activities, and is responsible for any deficit the Board incurs.
The Board of Governors of Exhibition Place: 1. Directed the Chief Executive Officer to submit another update to the 2021 operating budget impact due to COVID-19 at the December 3, 2021 Board meeting.
Staff recommendation as filed
The Chief Executive Officer, Exhibition Place recommends that: 1. The Board direct the Chief Executive Officer to submit another update to the 2021 operating budget impact due to COVID-19 at the December 3, 2021 Board meeting.
EP19.5adopted
Hotel X Phase Two Development - Collective Agreement with IATSE Local 58
Hotel X Phase Two Development - Minutes of Settlement between the International Alliance of Theatrical Stage Employees and Moving Picture Technicians, Artists and Allied Craft of the United States, its Territories and Canada, Local 58 (IATSE), Overactive Media Corporation (OAM), and Princes Gates Hotel Limited Partnership (Hotel X), and the Board of Governors of Exhibition Place. The purpose of this report is to provide the Board of Governors with results of the collective bargaining negotiations between Exhibition Place, Hotel X, OAM and IATSE, as well as, a multi-party MOS that includes Exhibition Place. It is a precondition of the above-noted Collective Agreement and E-Sport Performance Venue completion/operations at Exhibition Place. This report seeks approval by the Board for two particular clauses in the Minutes of Settlement which pertain specifically to Exhibition Place.
The Board of Governors of Exhibition Place: 1. Approved Clause 7 and Clause 8 of the Minutes of Settlement as set out in Confidential Attachment 2 to the report (September 14, 2021) from the Chief Executive Officer, Exhibition Place. 2. Authorized the public release of the confidential information contained in Confidential Attachment 1 to the report (September 14, 2021) from the Chief Executive Officer, Exhibition Place at the discretion of the Chief Executive Officer. 3. Directed that the Minutes of Settlement as set out in Confidential Attachment 2 to the report (September 14, 2021) from the Chief Executive Officer, Exhibition Place remain confidential in their entirety and not be released publicly as it relates to labour relations or employee negotiations and labour relations information supplied in confidence to the Board which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization. Confidential Attachment 1 is now public and can be accessed under Background Information.
Staff recommendation as filed
The Chief Executive Officer, Exhibition Place recommends that: 1. The Board approve Clause 7 and Clause 8 of the Minutes of Settlement as set out in Confidential Attachment 2. 2. The Board authorize the public release of the confidential information contained in Confidential Attachment 1, once the Board has adopted the recommendations and at the discretion of the Chief Executive Officer. 3. The Board direct that the Minutes of Settlement as set out in Confidential Attachment 2 remain confidential in its entirety and not be released publicly as it relates to labour relations or employee negotiations and labour relations information supplied in confidence to the Board which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization.
EP19.6adopted
Garden of the Greek Gods Existing Statuary Relocation and Conservation Plan Update
This report provides an update on the relocation plans for the Statuary Garden of the Greek Gods statues, presently located on the Leased Premises of Toronto Event Centre.
The Board of Governors of Exhibition Place: 1. Received the report (September 14, 2021) from the Chief Executive Officer, Exhibition Place for information.
Staff recommendation as filed
The Chief Executive Officer, Exhibition Place recommends that: 1. The Board receive this report for information.
EP19.7adopted
2022-2026 Strategic Plan Update Presentation
This report is to introduce a presentation by Optimus SBR (Optimus); the consultant contracted to facilitate the development of the 2022-2026 Strategic Plan. The presentation will provide the Board with updated information on the strategic plan methodology and timeframe.
The Board of Governors of Exhibition Place: 1. Received the report (September 14, 2021) from the Chief Executive Officer, Exhibition Place for information.
Staff recommendation as filed
The Chief Executive Officer, Exhibition Place recommends that: 1. The Board receive this report for information.
EP19.8adopted
Exhibition Place Management Report - Second Quarter, 2021
The first quarter management report from the Chief Executive Officer is provided to the Board for information. A new format has been developed with various graphs and tables for ease of reference of the key information by the Board and the community. This Management Report along with a separate Financial Report is produced on a quarterly basis.
The Board of Governors of Exhibition Place: 1. Received the report (September 14, 2021) from the Chief Executive Officer, Exhibition Place for information.
Staff recommendation as filed
The Chief Executive Officer, Exhibition Place recommends that: 1. The Board receive this report for information.
EP19.9adopted
Occupational Health and Safety Report - 2nd Quarter 2021
This report provides information on the status of the Exhibition Place health and safety system, specifically on activities, priorities and performance during the second quarter of 2021. There were 0 lost time injuries and a 100 percent decrease in medical aid injuries in the second quarter of 2021 relative to the second quarter of 2020. Workplace Safety and Insurance Board invoiced costs for the second quarter of 2021 were approximately 28 percent higher to those in the second quarter of 2020. This is attributable to an increase in Long Term Disability costs.
The Board of Governors of Exhibition Place: 1. Received the report (September 14, 2021) from the Chief Executive Officer, Exhibition Place for information.
Staff recommendation as filed
The Chief Executive Officer, Exhibition Place recommends that: 1. The Board receive this report for information.
EP19.10adopted
Proposed Collective Agreement with LiUNA Local 506
The Collective Agreement between the Board of Governors of Exhibition Place and Labourers' International Union of North America, Local 506 (LiUNA Local 506) expired on March 31, 2021. In 2020, the parties resolved a number of long-standing issues that were pending arbitration, and negotiations for a new collective agreement commenced in January 2021. This report outlines the terms of a Memorandum of Agreement attached as Confidential Appendix A that was ratified by the Labourers' International Union of North America, Local 506 on August 19, 2021, and pending Board approval, would be the basis of a renewed Collective Agreement with the Board.
The Board of Governors of Exhibition Place: 1. Approved the terms and conditions of the Memorandum of Agreement, set out in Confidential Attachment 1 and Confidential Attachment 1 - Appendix A to the report (September 14, 2021) from the Chief Executive Officer, Exhibition Place, between the Board of Governors of Exhibition Place and Labourers' International Union of North America, Local 506. 2. Authorized staff to make the necessary amendments to rates of pay and other issues identified as agreed changes to the collective agreement in the Memorandum of Agreement (Confidential Attachment 1 - Appendix A) and set out in Confidential Attachment 1 to the report (September 14, 2021) from the Chief Executive Officer, Exhibition Place. 3. Directed that Confidential Attachment 1 and Confidential Attachment 1 - Appendix A to the report (September 14, 2021) from the Chief Executive Officer, Exhibition Place be released publicly after ratification of the Memorandum of Agreement by the Board. Confidential Attachment 1 and Confidential Attachment 1 - Appendix A to the report (September 14, 2021) from the Chief Executive Officer, Exhibition Place are now public and can be accessed under Background Information.
Staff recommendation as filed
The Chief Executive Officer, Exhibition Place recommends that: 1. The Board approve the terms and conditions of the Memorandum of Agreement, set out in Confidential Attachment 1 and Confidential Attachment 1 - Appendix A, between the Board of Governors of Exhibition Place and Labourers' International Union of North America, Local 506. 2. The Board authorize staff to make the necessary amendments to rates of pay and other issues identified as agreed changes to the collective agreement in the Memorandum of Agreement (Confidential Attachment 1 - Appendix A) and set out in Confidential Attachment 1. 3. The Board direct that Confidential Attachment 1 and Confidential Attachment 1 - Appendix A be released publicly after ratification of the Memorandum of Agreement by the Board.
EP19.11adopted
Amendment to Fountainblu Lease Renewal for the Fountain Dining Room
The Board and 16730801 Ontario Ltd. (the "Tenant") entered into a lease for the Fountain Dining Room ("FDR"), being part of the Queen Elizabeth complex, dated November 1, 2010, which expires on April 30, 2020. Fountainblu is formerly known as the Fountain Dining Room. At its meeting of September 19, 2019 the Board approved a new lease between the City of Toronto as Landlord and the Tenant for a term of ten (10) years commencing May 1, 2020 and ending April 30, 2030. The Tenant on January 9, 2020 wrote to the CEO of Exhibition Place requesting a term of twenty (20) years expiring April 30, 2040, instead of the ten (10) years, which was approved by the Board on February 11, 2020. The Tenant on April 12, 2021 wrote to the CEO of Exhibition Place requesting an amendment to the Permitted Use clause in the Lease to allow for use as a banquet facility, which is already permitted, and to add a new permitted use as a private event/function space, with the ability to offer both banquet and food and beverage events. This report recommends that the Board subject to obtaining the necessary City of Toronto authorization approve the amendment.
The Board of Governors of Exhibition Place: 1. Subject to obtaining the necessary City of Toronto authorization, approved the amendment to the permitted use clause (Section 5.1) of the lease dated May 1, 2020 (the "Lease") for the Fountain Dining Room between the City of Toronto, as landlord (the "Landlord"), 16730801 Ontario Ltd., as tenant (the "Tenant"), and The Board of Governors of Exhibition Place, substantially on the terms and conditions set out in Appendix "A" to the report (September 15, 2021) from the Chief Executive Officer, Exhibition Place and such other terms and conditions deemed appropriate by the Deputy City Manager, Corporate Services, the Chief Executive Officer, Exhibition Place, and in a form satisfactory to the City Solicitor. 2. Authorized the Chief Executive Officer, Exhibition Place to request the necessary City of Toronto authorities to approve the amendment for the new Lease.
Staff recommendation as filed
The Chief Executive Officer, Exhibition Place recommends that: 1. Subject to obtaining the necessary City of Toronto authorization, the Board approve the amendment to the permitted use clause (Section 5.1) of the lease dated May 1, 2020 (the "Lease") for the Fountain Dining Room between the City of Toronto, as landlord (the "Landlord"), 16730801 Ontario Ltd., as tenant (the "Tenant"), and The Board of Governors of Exhibition Place, substantially on the terms and conditions set out in Appendix "A" and such other terms and conditions deemed appropriate by the Deputy City Manager, Corporate Services, the Chief Executive Officer, Exhibition Place, and in a form satisfactory to the City Solicitor. 2. The Board authorize the Chief Executive Officer, Exhibition Place to request the necessary City of Toronto authorities to approve the amendment for the new Lease.