1 of 52 - LMCH · 2020. 4. 28. · K. Van Slyke Manager, Finance T. Smuck Manager, Community...

Board Member: Sandra Datars Bere, Managing Director, Housing, Social Services and Dearness Home

AGENDA

LONDON & MIDDLESEX COMMUNITY HOUSING (LMCH)

Board of Directors Meeting

Corporate Boardroom 1299 Oxford Street East, Unit 5C5

London, Ontario

Thursday, April 9, 2020

2:00 P.M. – 4:00 P.M.

1 of 52

Item Lead Time 1. Call to Order S.Datars Bere 2:00

2. Recognition of Indigenous Peoples and Lands S.Datars Bere 2:02

3. Completion and Acceptance of Agenda S.Datars Bere 2:05

4. Disclosures of Interest S.Datars Bere 2:06

5. Approval of the Minutes of the Previous Meeting S.Datars Bere 2:10

6. Communications S.Datars Bere 2:11

7. Delegation

none

8. Reports and Business

a. CEO Update b. Staff Report 2020 – 12 – April Vacancy c. Staff Report 2020 – 13 – January 2020 KPI Report d. Staff Report 2020 – 14 – AMP Update 2020 e. Staff Report 2020 – 15 – Capital Budget f. Staff Report 2020 – 16 – Capital Work Update g. Staff Report 2020 – 17 – January 2020 Operating and Capital

A. Mackenzie A. Mackenzie

J. Bonasia M. Banuelos M. Banuelos

N. van der Velde N. van der Velde

2:20 2:25 2:40 2:55 3:10 3:25 3:40

9. New Business / Enquires

10. In Camera Matters a. A matter pertaining to litigation or potential litigation,

including matters before administrative tribunals, affecting the municipality

3:55

11. Meeting Adjourn 4:00

2 of 52

Recognition of Indigenous Peoples and Lands Statement

We would like to begin by acknowledging the treaty territory of the Anishnaabeg, which is defined within the pre-confederation treaty know as the

London Township Treaty of 1796. Throughout time, this region has also become the current home to the Haudenosaunee and Lenni-Lenape Nations.

3 of 52

BOARD OF DIRECTORS MEETING Thursday, March 12, 2020 at 2:00 PM

London & Middlesex Community Housing Board Room, 1299 Oxford Street East, Unit 5C5, London, ON.

Board Member Present: Senior Staff Present: S. Datars Bere, Board Member, Managing Director, Housing, Social Services & Dearness Home, City of London

Meeting to Order

S. Datars Bere called the meeting to order at 2:01 PM.

Recognition of Indigenous Peoples and Lands

S. Datars Bere provided the following recognition address:

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.

Completion and Acceptance of the Agenda

With regard to the completion and acceptance of the agenda, moved and resolved by S. Datars Bere that the agenda BE ACCEPTED and APPROVED. CARRIED.

Declaration of Conflict of Interest

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

Board Meeting Minutes of December 18, 2019

With regard to the Board Meeting Minutes of December February 5, 2020, moved and resolved by S. Datars Bere that the Minutes BE APPROVED. CARRIED.

A. Mackenzie Interim CEO N. van der Velde Director, Finance (Interim) K. Van Slyke Manager, Finance T. Smuck Manager, Community

Development B. Leslie Manager, Capital Projects &

Construction J. Bonasia KPI Analyst T. Paget Manager, Executive

Administration M. Banuelos Manager of Portfolio Strategy

Development

4 of 52

Communications No communications.

Delegation(s) No delegations.

CEO Update With regard to the general update provided by the Chief Executive Officer, moved and resolved by S. Datars Bere that the update BE RECEIVED and APPROVED regarding the following:

i. Government Relations & Sector Engagement ii. Organizational Plans, Regeneration Plans

iii. Labour Relations iv. Community & Tenant Engagement v. Laserfiche

vi. Enterprise Risk Management vii. Fanshawe College Partnership

CARRIED.

Staff Report 2020 – 06 Key Performance Indicators

With regard to Staff Report 2020-06 Key Performance Indicators, moved and resolved by S. Datars Bere that the report BE ACCEPTED and APPROVED. CARRIED.

Staff Report 2020 – 07 Audit Planning Report

With regard to Staff Report 2020-07 Audit Planning Report, moved and resolved by S. Datars Bere that the report BE ACCEPTED and APPROVED. CARRIED.

Staff Report 2020 – 08 Vacancy Management Update

With regard to Staff Report 2020-08 Vacancy Management Update, the board is very pleased and would like to thank staff for their hard work to restore 96 units to rental stock. Moved and resolved by S. Datars Bere that the report BE ACCEPTED and APPROVED. CARRIED.

Staff Report 2020-09 Capital Project 2018 - 0002

With regard to Staff Report 2020-09: Capital Project 2018-0002, moved and resolved by S. Datars Bere that the report BE ACCEPTED and APPROVED. CARRIED.

5 of 52

Staff Report 2020-10 Operating Capital Report

With regard to Staff Report 2020-10 Operating Capital Report, moved and resolved by S. Datars Bere that the report BE ACCEPTED and APPROVED. CARRIED.

Staff Report 2020-11 Capital Work Report

With regard to Staff Report 2020-11 Capital Work Report, moved and resolved by S. Datars Bere that the report BE ACCEPTED and APPROVED. CARRIED.

New Business No new business or enquiries noted.

In Camera Matters

With regard to In Camera Matters and consistent with the provisions of Section 239 of the Municipal Act, moved and resolved by S. Datars Bere that the Board move In Camera to discuss:

i. In Camera Board Meeting Minutes of February 5, 2020

CARRIED.

Date of Next Board Meeting

The Board schedule the next meeting for on April 9, 2020 at 2:00 PM.

Adjournment Moved and resolved by S. Datars Bere that the meeting BE ADJOURNED at 3:08 PM.

S. Datars Bere, Board Member Andrea Mackenzie, Interim CEO

6 of 52

Update from the CEO Board Meeting of April 9, 2020

a) Government Relations & Sector Engagement

The CEO has engaged in COVID preparedness discussions with the other LHC’s which was a project spearheaded by HSC. The discussions have resulted in the sharing of and best practices for ensuring staff and tenant safety. Additionally, LMCH is contributing to the Mayor’s Social Impact and Recovery Task Force. Topics discussed include Food security, basic needs, emergency services, and community supports. Additionally the CEO will begin participating in teleconference meetings as part of Housing Partnership Canada the first of which is scheduled for April.

b) COVID LMCH is taking several steps to prepare for and respond to the challenges presented by COVID.

• Updated Business Continuity Plan • Purchasing necessary PPE and sanitizer • Closing our offices to the public and performing operations with

a reduction in staff • Communicating best practices regarding social distancing to

tenants • Providing tenants with alternative ways of paying rent

c) Organizational Plans, Regen Plan)

Regen Plan – Senior staff from the City, HDC and LMCH continue to meet to align regeneration strategy with site-specific plans.

d) Community & Tenant Engagement

LMCH’s response to COVID required pausing in-community social programming for tenants. The Community Development team continues to reach out to tenants over the phone to perform wellness checks, answer questions, and offer to provide future check-ins for tenants with health concerns.

e) Laserfiche Project COVID-19 is impacting LMCH’s ability to implement Laserfiche. Both LMCH and ThinkDox have limited their in office staff to create social distancing in their workplaces. ThinkDox and LMCH met on April 1, 2020 to discuss integrating Laserfiche in the Account Payable process and established a revised timeline to complete implementation by mid-May.

f) Enterprise Risk Management (ERM)

The LMCH ERM Committee will meet on April 14 to review and finalize the Risk Reporting Dashboard, ERM Framework, and ERM Policy. The committee will define the risk tolerance the organization is willing to accept related to key areas identified in BDO’s report. This will be the committee’s final step in completing the ERM Program.

7 of 52

g) Fanshawe College Partnership

Fanshawe College Maintenance & Restoration students are pausing their work until further notice due to COVID.

8 of 52

STAFF REPORT 2020-12

TO: London & Middlesex Community Housing Board of Directors FROM: Andrea Mackenzie, Interim Chief Executive Officer SUBJECT: Vacancy Management Update DATE: April 20, 2020 RECOMMENDATION: That, on the recommendation of the Interim Chief Executive Officer, the Vacancy Management Update report BE RECEIVED for information. PURPOSE: To update the Board, Shareholder and Service Manager regarding the status of LMCH’s Vacancy Management. March 2020 Progress

1. Total Vacancy: This includes all units within LMCH portfolio that are not occupied. It is inclusive of Non-Rentable (Units), Active Restoration (Units) and Rent Ready Stock (Target: 3%)

Current Total Vacancy: 4.3% or 143 units Future Leased: 0.24% or 8 units Final Vacancy: 4.1% or 135 units

2. Active Rental Stock: These are all units that are rent ready and available to offer. Units leave this category when they are future leased or leased (when the actual lease is signed and keys are handed to the new tenant).

Current Active Rental Stock: 1.8% or 60 units

3. Non-Rentable or in Active Restoration: This category includes all remaining units that have suffered catastrophic loss, i.e. fire, flood or other insurable damage. Construction projects such as portfolio improvements and secondary suites. Units that are in pre-pest clearance as well as any that are pest cleared and are now in active restoration.

Current Active Repair, Construction or Restoration: 2.2% or 75 units CONCLUSION:

9 of 52

We are continuing to refine our process for vacancy management and saw a decrease in the number of units being actively repaired or restored in March. Given the current realities of COVID-19 and having to operate on a reduced staffing model we have continued to allocate resources to work on unit repair and restoration of vacant units in an effort to meet and maintain our stated target of 2% of units in active repair. In April, we will continue to offer and lease family units and ground floor units in high-rise buildings. This will help prevent our vacancy numbers from increasing dramatically, but we may experience a slight increase related to COVID-19. In response to COVID, LMCH is ensuring that we have staffing to support leasing units while taking the necessary precautions to allow staff and our residents to maintain adequate social distancing. Adjusting our current business practices will have the unavoidable consequence of challenging our ability to meet our 3% vacancy target in the near term. We anticipate a rapid reduction in the vacancy rate upon returning to normal business practices.

REVIEWED and RECOMMENDED BY: ANDREA MACKENZIE, INTERIM CHIEF EXECUTIVE OFFICER

10 of 52


TO: London & Middlesex Community Housing Board of Directors

FROM: Joseph Bonasia, KPI & Business Analyst

SUBJECT: KEY PERFORMANCE INDICATORS (KPIs) DATE: April 9, 2020

RECOMMENDATION: That, on the recommendation of the Interim Director of Finance, the following report for BE RECEIVED for information purposes.

STRATEGIC ALIGNMENT: This report is consistent with LMCH’s strategic plan with particular emphasis on the evaluation for Key Performance Indicators (KPIs), put forward with LMCH’s strategic objectives.

1. Invest in People to build long-term Organizational Capacity Grow a learning organization fostering pride, mutual respect and informed

decision making

2. Grow Organizational Effectiveness Create a Governance Model to best support LMCH operations Develop and organizational evaluation framework

3. Maximize Information and Technology for Informed Decision Making

Invest in IT to deliver high performing systems that meet the changing needs of the organization and our tenants to drive efficiency and effectiveness.

Adopt, where appropriate, industry recognized standards to manage and protect our information technology assets, and to ensure services are efficiently and effectively managed and developed. BACKGROUND: A benchmark framework for KPI selection and evaluation has been developed in part with LMCH’s strategic plan. Data driven decision making can help streamline many of the process within our organization, and will add an evidence based layer to future strategic planning and organizational governance. Understanding the current state of data flow and the state of the data itself is currently underway, with intention of setting standardizations for data tracking, validation and

11 of 52

accountability. Several data audits have taken place to better understand these processes. The intention is to create a high level KPI dashboard, aligned with the metrics indicated in the strategic plan. The first goal is to provide a high level dashboard, where much of the KPI reporting is done so using manual data entry in a ‘low organizational data maturity’ fashion, for the purpose of monthly KPI reporting. A work schedule is in place to move the dashboard to a ‘middle organizational data maturity’ status which includes automated processes for data flagging, auditing, summary reports, analytics, as well as documentation and training for best practices of data capture and compliance, standard operating procedures, best practices and departmental accountability. The following report addresses the state of progress for this particular project, as well as a high level organizational KPI summary based on unaudited, preliminary January 2020 data. JANUARY 2020 DATA: Appendix A is the chart which lists each KPI and its associated January preliminary unaudited data for 2020. NEXT STEPS:

Work is currently underway for building a high level KPI dashboard. The first version will be drafted on our local servers immediately with a tentative early April delivery schedule, and a first version cloud based tool for continued tracking and real-time status updating will proceed with a tentative mid-late Q2 delivery schedule. A validation procedure for the 2019 data will also be performed during this build period. Iterations of continuous improvement will be made weekly with newly acquired data, testing the accuracy and real time capability of the tool. CONCLUSION: The purpose of this report is to present progress for LMCH’s KPI data audit initiative, as part of the strategic plan. The current state of LMCH’s organizational data process maturity is deemed to be low. Standardization and departmental accountability is of critical importance at this point of the development phases and must be exercised in the near future for the benefit of the organization. These potential Improvements will help move the organizational data process maturity level to a mid-level status. Appendix A- KPI Framework with December 2020 Results Appendix B - Developing a Benchmarking Framework using a Customized Results-Based Management System Approach for LMCH

Organizational Data Processes Audit

High-Level Visualization Dashboard

Standard Operating Procedures for 2020

Data Practices

Iterations of Continuous

Improvement

12 of 52

PREPARED and SUBMITTED BY: REVIEWED and CONCURRED BY:

Joseph Bonasia KPI & BUSINESS ANALYST

Nick Van der Velde INTERIM DIRECTOR OF FINANCE

13 of 52

Appendix A- KPI Framework with Preliminary January 2020 Results

14 of 52


TO: London & Middlesex Community Housing Board of Directors

FROM: Marisa Banuelos, Manager, Portfolio Strategy Development, and Andrea Mackenzie, Interim Chief Executive Officer

SUBJECT: LMCH 2020-2029 Asset Management Plan: Progress Overview & Update DATE: April 12, 2020

RECOMMENDATION:

That, on the recommendation of the Manager, Portfolio Strategy Development with concurrence of the Interim Chief Executive Officer:

a) The Board of directors RECEIVE for information this staff report.

BACKGROUND: Asset Management is defined as the systematic process of planning, operating, maintaining, upgrading and replacing assets cost effectively, with minimum risk, and at the expected levels of service over the assets life cycle (NRC (Canada)). Over the past 15 years, asset management has been an area of increased activity throughout Ontario. This is a function of the introduction of regulations and guides such as Infrastructure for Jobs and Prosperity Act (2015) and Municipal Asset Management Regulation (O. Reg. 588/17). Under O Reg. 588/17 municipalities are required to:

o Implement a strategic asset management plan encompassing core assets by July

2021

o Update the strategic asset management plan to encompass all municipal assets (including Boards and Commissions, like LMCH) by July 2023

o Review their asset management plan annually and update the plan every five (5) years

15 of 52

As evidenced by numerous reports (e.g. 2018 and 2019 Assessment Growth Business Cases #22 and #27 respectively) LMCH’s portfolio is aging and its capital needs are rapidly growing. As the assets require increased levels of investment it will become more and more crucial for LMCH to clearly understand and evaluate investments including the risk assumed by not investing in building components and the funding required to meet specified levels of service. To develop the asset understanding necessary to make appropriate and effective funding decisions, LMCH has chosen to develop its AMP while in advance of the O. Reg 588/17 deadline. LMCH 2020-2029 AMP will meet most of the O.Reg 588/17 requirements and by 2023 it will be in full compliance. The development and refinement of the Plan has been a joint effort and collaboration involving the City of London’s Corporate Asset Management (CAM) team. The discussion section below outlines six critical sections of LMCH’s AMP, noting key information relevant to LMCH, and LMCH’s progress to date.

DISCUSSION: 1. State of LMCH Assets This section provides the reader with the inventory, 2020 replacement values, and condition assessment of LMCH’s assets. Assets are broken into two categories:

A. Core Assets: these are real property (land and built improvements) B. Other Assets: These are all other Tangible Capital Assets (TCA) and include fixtures

and furniture, technology and communications, machinery and equipment, and appliances.

To date, replacement values have been determined for all core assets and condition has been assessed as of January 2020 using FCI scores (refer to Appendix 1 and 2). FCI scores are an effective tool to compare and benchmark a portfolio of assets that are different in their size and built form (e.g. townhouse property vs. high-rise apartment building). For other assets replacement values have been calculated for all TCA in LMCH’s possession as of December 31, 2018 (refer to Appendix 1). TCA condition has also been assessed based on the assets remaining useful life. Remaining useful life is computed by dividing the age of an asset by the number of years it is predicted to remain of utility. While this is a crude measure of condition it is still a fair and reasonable way to assess condition and does not demand costly resources required for more in-depth review that in many cases could not be

16 of 52

justified based on the assets cost. An example of TCA value distributed by condition is provided in Appendix 3. LMCH Estimated Progress: 75-85% Core information for this section has been sourced, retrieved, updated and populated into the document. At this time, some final refinement based on forthcoming financial statements is impending as well as some general refinements to language etc. 2. Levels of Service Level(s) of Service (LOS) are statements that describe the outputs and objectives that LMCH intends to deliver to a range of stakeholders. There are three primary types of LOS:

A. Corporate: performance expectations based on LMCH’s corporate values and mission

B. Customer (community) describe the attributes (e.g. reliable) of the service LMCH customers expect.

C. Asset (technical): What the asset must do (E.g. condition rating) to provide acceptable services and control risk to customer LOS.

While the above LOS are distinct in type, they are interconnected as outlined below:

1 As this figure illustrates customer LOS and Corporate LOS will not be achieved if Asset LOS

1 Please note: the LOS are under review and likely to change slightly – e.g. a percentage of high priority (formerly “impact” requirements remediated rather than all high priority requirements.

17 of 52

are not met. This section of the report defines LOS, outlines LMCH’s LOS, and for each LOS outlines its current performance, risks and limitations of achieving the desired performance. The development of this section has highlighted the importance of consistent data collection, and reliable data storage and retrieval. In the absence of appropriate data, LMCH will not be able to reliably report on its LOS and it will be in non-compliance with O.Reg 588/17.

LMCH Estimated Progress: 70-75%

The bulk of this section has been developed and written, but there will be refinements needed to some of the LOS. Forthcoming discussions with the City of London’s Finance and Policy Department and the direction of LMCH’s SLT will inform this refinement. 3. Lifecycle Management Lifecycle management is the process of optimizing value in assets throughout their lifecycle using a series of planned actions that enable the asset to deliver the LOS while managing risk and doing so at the lowest cost. Lifecycle management must consider the specific needs of each asset within the portfolio in conjunction with the mission of the organization, the resources available, and current and future risks and opportunities. In this section of the AMP lifecycle activities (e.g. non-infrastructure, maintenance) are defined, LMCH specific examples of each lifecycle activity is provided, and strategies to advance or improve the lifecycle activity are presented. For the Boards understanding and reference a summary table of lifecycle activities has been provided as Appendix Four. LMCH Estimated Progress: 80-85% Aside from some analysis rework due to positive Business Case Decisions, there are no significant outstanding updates needed in this section. . 4. Identifying Priorities & Evaluating Risk In this section, LMCH defines requirement priority (formerly “impact”) groupings (refer to Appendix Five for further detail), outlines the various types of risk that exist (i.e. regulations and legal, reputation etc.) and outlines how (for high and medium priority requirements) risk — a function of the probability of failure multiplied by the consequence of failure— is calculated. Additionally, information on risk mitigation (reduction, acceptance, and avoidance via disposal) is provided and LMCH’s Risk approach is outlined.

18 of 52

Essentially, this section provides the analysis necessary to identify priority of investment and then within the high and medium priority categories quantify the level of risk assumed by not investing in a particular requirement. While risk scores are to remain confidential, the analysis provides an important tool to demonstrate to the public and our shareholder that investment decisions are justified and prudent. LMCH Estimated Progress: 85%-90% Some minor updates to Illustrations within this section are needed to improve readability, but the methods and content are more or less sufficiently developed. 5. Forecasted Infrastructure Gap An infrastructure gap is the difference between the level of committed funding and the level of funding required to meet the defined LOS. Infrastructure Gaps are calculated by lifecycle activity. For LMCH, these are:

I. Lifecycle Renewal

a. Funding needed to renew (in a like for like manner) existing assets to the established LOS.

b. Existing assets are all LMCH assets (core and other) c. Gap = $145.65 M over 2020-2029 period

II. Service Improvement a. Funding needed to improve an asset’s capacity, quality, and/or system

reliability b. Identified service improvements selected based on interview with 8 LMCH

staff, review of LMCH Tenant Survey, Tenant Meeting notes (conducted by LMCH management), and relevant research. Finalized list received SLT review and consent.

c. Gap calculation outstanding but should not exceed $3.5 M III. Growth

a. Funding needed to extend services to previously unserved areas or expand services to meet growth demands

b. Cost estimates are based on:

i. Creating 20 ancillary basement units in existing LMCH semi-detached housing units

ii. Building at least 80 units on an existing LMCH family townhouse sites

19 of 52

iii. Acquiring an existing 60-100 unit property where operating agreements have expired2

c. Funding Sources are the Approved Regen Business Case d. Gap=$6.9 M over 2020-2029 period

LMCH Estimated Progress: 75%- 80% Some cost estimates are currently outstanding; however, they are actively being sought. How data is presented will be modified slightly but the data itself should not materially change. 6. Financing Strategy This section presents various approaches for reducing or closing the infrastructure gap and then recommends one approach. Thus far, LMCH has, at a high level outlined potential approaches for addressing the infrastructure gap. With the assistance of CAM, LMCH will be meeting with the City of London’s Finance and Policy team in the next month to discuss and evaluate strategies to address the infrastructure gap. These strategies will be in alignment with City of London Financial policies.

LMCH Estimated Progress: 25-30% Significant work is outstanding in this area, but this is mostly a function of it being one of the last sections of the AMP to be developed. Conclusions This report has outlined at a high-level critical sections of LMCH’s AMP. In addition to the sections outlined above, the AMP will also include an Introduction chapter outlining important background information about Local Housing Corporations (LHC) and LMCH in particular. Naturally, there will also be a section based executive summary, and a discussion

2 In the 1970s, subsidies were created for terms of 20-50 years by the federal government to offset the mortgage costs of projects. The intent of doing so was to reduce the financial burden of mortgages so that when operating agreements expired and mortgages matured rental revenues would be sufficient for social housing providers to remain solvent. A study commissioned by the Canadian Housing and Renewal Association (CHRA) in 2005 found that most social housing projects implemented after 1986 would most likely not be viable upon the expiration of operating agreements (O'Brien, 2011). This creates a significant opportunity for the merger and/or acquisition of existing units.

20 of 52

section at the close of the AMP. While there are still outstanding items to be completed, there has been significant progress made to date. With sufficient time allocation and focus, the project should be complete by the target date of spring 2020.

Appendix One: Inventory Replacement Cost Breakdown Appendix Two: Current State of LMCH’s Core Assets Appendix Three: Tangible Capital assets Valuation and Condition Distribution Example Appendix Four: Lifecycle Activities, Strategies & Tools to Deploy Strategies Appendix Five: Priority Definitions & Examples

PREPARED and SUBMITTED BY:

MARISA BANUELOS MANAGER OF PORTFOLIO STRATEGY DEVELOPMENT

REVIEWED and CONCURRED BY: REVIEWED and CONCURRED BY:

ANDREA MACKENZIE INTERIM CHIEF EXECUTIVE OFFICER

21 of 52

Appendix One: Inventory Replacement Cost Breakdown

Acquisition cost

Machinery & Equipment $ 3,485,543.81

Appliances $ 1,996,578.60

Technology/Communications $ 519,607.93

Fixtures/Furniture $ 230,017.80

Land

LMCH Core Assets: Inventory Breakdown

Inventory Total 2020

Replacement Cost

Weighted Avg.

Property 2020 FCI

Score

Building 2020

Replacement Cost

Building 2020 FCI

Score

Site 2020 Replacemen

t Cost

Weighted Avg.

Site 2020 FCI Score

Multi-Res Total $ 494,933,177 42% $ 489,377,864 42% $5,555,314 67%

Townhouse Total $ 222,104,799 49% $ 209,836,627 49% $12,268,172 80%

Semi & Scattered Total $8,921,269

Not Assessed $8,921,269

Not Assessed

Land: Portfolio Wide $7,787,329

Not Assessed

Not Assessed

Portfolio Total $ 733,746,575 45% $ 708,135,759 44% $17,823,486 76%

22 of 52

Asset Category 2020 Replacement Cost3 Multi Res Total $ 494,933,177 Townhouse Total $222,104,799 Semi & Scattered Total $8,921,269 Land Total $7,787,329 Machinery & Equipment $3,974,061 Appliances $302,940 Technology/Communications $998,978 Fixtures/Furniture $263,740 Total $741,286,292

3 Noting the above footnote (#2), increases will also be reflected in the total replacement costs.

23 of 52

Appendix Two: Current State of LMCH’s Core Assets

Asset Type Asset Description Inventory Unit Replacement Value 1 < 5% 2 <20% 3 < 40% 4 <60% 5 > 60% 6 (Not assessed)Multi-Residential Buildings 21 count 489,377,864$ 0 1 15 2 0 3Multi-Residential Sites 21 count 5,555,314$ 1 0 1 5 10 3Townhouse Buildings 7 count 209,836,627$ 0 0 3 4 0 0Townhouse Site Work 7 count 12,268,172$ 0 0 3 0 4 0Detached/Semi Detached Buildings & Site 74 count 8,921,269$ 74Land 97 acres 7,813,529$ 97Total Real Property 32 733,772,774$ 1 1 22 11 14 177

Real Property

LMCH Asset Summary InformationFCI Condition

24 of 52

Appendix Three: Tangible Capital assets Valuation and Condition Distribution Example

25 of 52

Appendix Four: Lifecycle Activities, Strategies & Tools to Deploy Strategies

Lifecycle Activity

Description LMCH Example Strategies Tools to deploy Strategies

Non-Infastructure

Actions or policies that can lower costs and/or extend asset life.

o More appropriate tenant placement, and improved support services to reduce behavioral issues and consequently willful property neglect and damage. o Development and adherence to an AMP so that assets are most effectively managed and capital work is most prudently selected.

Mixed Income Model: Implementation of a mixed income model or demographic re-alignment by for example, mixing adults and seniors in the same building. Repositioning: Stabilize the tenant base through significant social intervention, supports, programming and partnerships and, in due time, positioning the asset to adopt a mixed income model.

Developing Community Profiles: Discontinue the placement of tenants by site (e.g. adult-only sites and seniors-only sites) and integrate more diverse tenant profiles into sites to develop communities by reducing demographic silos (e.g. adding seniors to family sites). Tenant Placement & Support: Place more appropriate and increased levels of support alongside tenants with complex needs, and combine with appropriate program management. Collaborate with partners to advance housing and whole-life stability Intensifying Community Use: Increase the availability and use of onsite community space for community programs, like computer resource centers or job finding clubs. By providing tenants with resources to improve their wellbeing, it is predicted that willful property damage and neglect will be reduced, which will decrease property costs and extend asset life.

Maintenance Regularly scheduled inspections and maintenance, or

o Annual unit inspections to proactively identify

Long Term Stewardship: Complete regularly scheduled maintenance activities, respond

Trend Analysis: Review results of KPI inspections and annual unit inspections to identify, assess, and respond to trends.

26 of 52

Lifecycle Activity


more significant repair activities associated with unexpected events.

and repair maintenance issues. o Building KPI inspection program to identify issues. o Completion of work orders o Responding to unexpected asset component failure

to unexpected events and failures as required.

Preventative Maintenance- As much as possible make regular investments in key building components to extend their life, and improve their performance, and reliability.

Rehabilitation Significant treatments designed to extend the life of the asset.

o Epoxy pipe lining to seal leaks, prevent further corrosion and leaching and protect against water damage. o Building envelope scheme

Asset Life Extension: Extend the life of assets as much as possible through significant treatments. Continue these treatments only as long as they are cost effective (i.e. cost of rehabilitation is not in excess of cost of replacement). Preventative based Rehabilitation: Identify measures to reduce the rate and potential for asset deterioration and implement where cost effective. May include strategies like bathroom fans connected to light switches to reduce and prevent moisture issues.

Condition Review: Review major building component on a regular basis to ensure that rehabilitation can be deployed rather than the asset deteriorating to the point that rehabilitation is no longer an option. Project Management: Provide appropriate levels of project management to all capital projects to ensure that capital work adheres to contractual specification with all deficiencies corrected before project close out.

Replacement Activities that are expected to occur

o Replacement of major building

Capital Investment Program: Where existing requirements

Project Management: Provide appropriate levels of project management to all capital

27 of 52

Lifecycle Activity


once an asset has reached the end of its useful life.

components e.g. roofing, windows, make-up air units

have no remaining useful life, and/or are a high priority requirement with a high risk score, the requirement is replaced. Demolition & Rebuild: Existing assets is replaced with a comparable asset (no growth). This change requires permission from the service manager and extensive coordination and re-housing of tenants. Process would include tenant management, property de-commissioning, demolition, and new construction. Replacement activities would be pursued only if alternative approaches are not feasible or otherwise justifiable.

projects to ensure that capital work adheres to contractual specification with all deficiencies corrected before project close out. Project Specification & Design: Complete thorough analysis of construction and operating costs and benefit to ensure prudent selection of project design and specifications. Condition Review: Review major building components before replacement to ensure that replacement is necessary and appropriate.

Disposal Activities associated with disposing of an asset once it has reached the end of its useful life, or for other reasons is no longer needed by the municipality.

o Where it makes more economic sense to dispose of specific assets (e.g. scattered units), sell and use the proceeds for more suitable development. This is subject Service Manager permission.

Asset Disposal and Investment: Where it makes more economic sense to dispose of assets, sell and use the proceeds for more suitable development. This is subject to Service Manager permission.

Research & Due Diligence: Complete thorough analysis of carrying costs, housing benefit, cost of alternative housing, and cost of disposal prior to any final disposal decision. Salvage Value Maximization: Where cost effective and executable, salvage all

28 of 52

Lifecycle Activity


remaining value from assets prior to their disposal.

Service Improvement

Planned activities required to improve an asset’s capacity, quality, and system reliability.

o Advance information technology services on housing sites to improve service quality and communication effectiveness o Replace existing requirements with higher quality replacements

Use of Technology: Implement new technology resources that improve service delivery, reduce cost of service, and/or improve quality (e.g. improved communication technology between head office and site shops for more streamlined communication and administration). High Need, High Benefit: Invest where the needs are highest, the benefits are the greatest, and the costs are most reasonable. Innovative Building Technologies: New or upgraded building components that optimize building performance (e.g. solar walls).

Cross Departmental Initiatives: Engaging the Information Technology department in discussions related to strategies for improving assets using information technology. This provides the asset management department with another vantage point and knowledge source to encourage innovation and service improvement. Staff Awareness, Training, and Collaboration: Encourage asset management staff to attend conferences, collaborate with other LHC’s, and engage industry partners to learn about new and innovative building technologies, building management practices and strategies. Investigation: Evaluate all potential service improvements and prioritize based on alignment with corporate goals, prevalence of needs, benefits, costs, and operational impacts.

Growth Planned activities required to extend services to previously

New unit construction to service increased demand for housing

Acquisition of New Sites or Conversion Opportunities: Acquire already developed multi-residential properties and/or

Shareholder Engagement: Develop a strong working relationship with the shareholder that supports and encourages

29 of 52

Lifecycle Activity


unserved areas or expand services to meet growth demands.

acquire already developed non-residential properties with a plan to convert to residential Surplus Land Utilization: Use surplus land available on existing sites to facilitate incremental development and densification (e.g. County properties, some townhouse sites)

pursuit and attainment of growth opportunities. Partnerships & Programs: Engage with partners, like CMHC, for funding opportunities, expertise, and partnerships to ensure that growth costs are sensible and provide the desired outcome.

30 of 52

Appendix Five: Priority Definitions & Examples

Priority Description Example

High Priority

Requirements are critical and central to the building’s operation. They are located in high volume buildings and should be replaced within their useful life period rather than run to their failure.

Lone elevator in high-rise, seniors building:

This requirement meets the critical need for access throughout the building. It is within a multi-residential building that houses seniors who more frequently have mobility challenges. There may be no secondary elevator.

Medium Priority

Requirements are very important to the buildings operation, but not critical. They are located in multi-residential buildings and should be replaced when they have served their useful life, but no later.

Hot water heater in a high-rise building:

Failure of a hot water heater negatively affects the buildings operation, but not in foundational ways, (i.e. tenants still have access to water).

Low Priority

The impacts of a requirements failure is generally isolated to a floor or a few units. The system provides services that are not critical to the building. As much as possible, the requirement should be run to, or close to, failure.

Storm sewer catch basin renewal:

A limited number of tenants are impacted by the failure of this system. The system provides important services, but they are not regularly used. Unless there are other external factors causing accelerated decline, the system should be run close to its failure.

31 of 52

Priority Description Example

Limited Priority

Requirements are specific to units and their failure does not affect other units. These are not central systems and generally should be replaced when they have failed.

Interior doors:

Interior doors are specific to a single unit; their failure has no affect on other tenants or units. As long as they doors are functional and meet regulations, they should not be replaced.

32 of 52


TO: LMCH Board of Directors

FROM: Marisa Banuelos (Manager, Portfolio Strategy Development), Bill Leslie (Manager, of Construction and Capital Projects), Nick van der Velde, (Interim Director of Finance), Andrea Mackenzie (Interim CEO)

SUBJECT: 2020 Capital Budget

RECOMMENDATION:

That, on the recommendation of the Manager of Capital Projects and Construction with concurrence of the Chief Executive Officer and Director of Finance:

a) The Board of directors APPROVE the 2020 Capital projects and associated Budget totaling

$4,000,000.

BACKGROUND: • In December 2019, LMCH’s Board received and approved in principle Staff Report 2019-

75 2020 Budget: Capital and Operating. Within this report, LMCH identified 2020 capital projects and distinguished projects by their priority level (formerly “impact). The combined budgeted total for 2020 Capital projects totaled $4 million;

• During the first quarter of 2020, LMCH identified substantial issues with select 2019 capital projects that remained active in the new calendar year. Mitigation required additional capital funding that went beyond the original 2019 Capital budget and resulted in a budget deficit;

• In discussion with The City of London, LMCH will source the funding required to cover this 2019 Capital Budget deficit from the 2020 Capital Budget.

I. This direction resulted in the following four 2019 capital projects being deferred to 2020: a. 2019-0003 - Walnut, Generator Replacement; b. 2019-0007 - William, Boiler Replacement; c. 2019-0009 - County, Windows/Doors; d. 2019-0010 - Balcony Study. The deferment of these projects resulted in the shifting of some 2020-

capital projects as originally identified in Staff Report 2019-75; II. It also necessitated that $490,214 of the 2020 capital budget be identified as

“SHAIP contingency”. This funding has been set aside to cover the 2019 Capital

33 of 52

Budget deficit in the interim. • In mid-March 2020, LMCH received notice from the City of London’s Finance Department

that each 2020 capital project required an associated project funding account number. Relevant to the 2020 capital budget the following two project funding account numbers were provided by City of London Finance:

o LMH261820 holds an account value of $2.2 million and represents LMCH’s historical base budget;

o LMH2619 holds a 2020 account value of $1.8 million and represents the 2020 funding increase resulting from the approval of LMCH’s Infrastructure Gap 2020-2023 Multi-Year Budget Business case.

• In accordance with the above directions and statuses, LMCH adjusted its 2020 capital budget to provide the required funding contingencies, advance deferred 2019 projects, and identify capital budget accounts as requested by the City of London’s Finance department.

2020 Capital Budget

A detailed summary of the proposed projects for the 2020 LMCH Capital Budget of $4,000,000 is included in Appendix 1 for Board review and approval. The 2020 capital budget places emphasis on investing in high and medium priority requirements in accordance with the LMCH Capital Business Case (also known as the “Infrastructure Gap” business case) submitted for council approval. The focus on high and medium priority requirements is reflected by the budgeted amounts of approx. $2,095,000 and $664,000 respectively or $2,759,000 cumulatively. This level of investment aligns with the performance metrics associated with the LMCH Infrastructure Gap Business case as outlined in Appendix 2. Some examples of 2020 high priority capital projects include boiler replacement, major elevator upgrades and elevator capital repairs, fire alarm systems, and generators. Sites for each project were selected based on information from VFA, other condition assessments including the 2016 Ayling Consulting Services Inc. (ACSI) Elevator Audit, and LMCH expert opinion. Generally, the identified sites are expected to be the advanced sites. However, anticipated failure and actual failure do not always align, and in this case, it may be a different site than those currently identified that receives investment. Low and limited priority and other capital needs have a total budgeted amount of approx. $751,000; and within these priority groupings, there is an additional $490,214 identified as “SHAIP Contingency”. In the event that LMCH is able to recover monies related to the capital project challenges identified, part or the entire $490,214 SHAIP contingency will be applied to the low and limited priority and other capital need projects.

CONCLUSION: The 2020 capital budget requires effectively written and sufficiently reviewed contract documents that are adhered to through strong project management. As always, cost saving mechanisms will need to be investigated to ensure risks are mitigated when unbudgeted and unexpected costs arise. Capital reporting will remain an important aspect to ongoing reporting and comprehensive contract documents will be required for effective asset management updating.

34 of 52

Appendix A: 2020 Capital Budget Appendix B: 2020-2023 Infrastructure Gap business Case— Performance Metric

PREPARED and SUBMITTED BY: REVIEWED and CONCURRED BY:

MARISA BANUELOS MANAGER OF PORTFOLIO STRATEGY DEVELOPMENT

NICK VAN DER VELDE INTERIM DIRECTOR OF FINANCE


BILL LESLIE MANAGER, CAPITAL PROJECTS & CONSTRUCTION


35 of 52

Appendix A: 2020 Capital Budget ANNUAL LCR NEW LCR SHAIP Contingency

2020 Capital Project # Business Unit Account # Project Description Site Budget LMH261820 LMH2619 LMH26192020-0001 LMH261820 MUA Hook Ups Dundas, Kent 386,000$ 386,000$ 2020-0002 LMH261820 Balcony Study Berkshire, Simcoe, Oxford 51,980$ 51,980$ 2020-0003 LMH2619 Balcony: Fall protection Sites to be determined by 2020-0001 25,000$ 25,000$ 2020-0004 LMH261820 Boiler Replacement William 259,900$ 259,900$ 2020-0005 LMH261820 Elevators: Capital Repairs Simcoe, McNay 200,000$ 200,000$ 2020-0006 LMH2619 Fire Alarm Panel Replacement Tecumseh 74,750$ 74,750$ 2020-0007 LMH261820 Fire Alarm Systems: annunciators Albert 50,000$ 50,000$ 2020-0008 LMH261820 Generator Replacements Walnut 168,935$ 168,935$ 2020-0009 LMH2619 Generator Replacements Baseline 62,458$ 62,458$ 2020-0010 LMH261820 Main Electrical Service - Various Amperage Walnut 115,575$ 115,575$ 2020-0011 LMH261820 Main Electrical Service - Various Amperage Simcoe 175,925$ 175,925$ 2020-0012 LMH261820 Major Elevator Upgrade Albert 524,320$ 524,320$ Total High Priority Total High Priority 3% 2,094,843$ 1,932,635$ 162,208$ -$

2020-0013 LMH261820 Fire Alarm Systems- Visual Devices Albert, Commissioners 90,000$ 90,000$ 2020-0014 LMH2619 Roofing: Replacement McNay 550,000$ 550,000$ 2020-0015 LMH261820 Technical Contingency Bella 23,730$ 23,730$ Total Medium Priority Total Medium Priority 3% 663,730$ 113,730$ 550,000$ -$

2020-0016 LMH2619 Corridor Security lock System Simcoe & Dundas 50,000$ 50,000$ 2020-0017 LMH2619 Physical Security Upgrades Dundas 50,000$ 50,000$ 2020-0018 LMH2619 Plumbing Riser Replacement: Water Supply Baseline 150,000$ 50,000$ 100,000$ Total Low Priority Total Low Priority 1% 250,000$ -$ 50,000$ 200,000$

2020-0019 LMH2619Asphalt: Parking Lots and Pathways Capital Repairs/Selective Replacement Various Sites 100,000$ 30,000$ 70,000$

2020-0020 LMH2619 Bathroom Rebuilds 15 Bathrooms: Various Sites 55,000$ 30,000$ 25,000$ 2020-0021 LMH2619 Corridor Painting Simcoe 100,000$ -$ 100,000$ 2020-0022 LMH2619 Exterior Door Replacement Wharncliffe Entrance Doors 35,000$ 35,000$ 2020-0023 LMH261820 & LMH5619 High rise Lighting Simpson (exit signs), Tecumseh (3 buildings, exit signs) 10,000$ 4,450$ 5,550$ 2020-0024 LMH2619 Kitchen Rebuilds 15 Kitchens: Various Sites 156,074$ 107,455$ 48,619$ 2020-0025 LMH2619 Lobby Upgrades Baseline 22,000$ 22,000$ 2020-0026 LMH2619 Unit Flooring Replacement Various Sites 164,370$ 164,370$ 2020-0027 LMH261820 Windows and doors: Town houses County Windows 73,260$ 73,260$ Total Limited Priority Total Limited Impact 0% 715,704$ 77,710$ 394,375$ 243,619$ Other Capital Needs Other Capital Needs2020-0028 LMH261820 Mold Abatement, Remediation & Prevention Town Home Sites 75,925$ 75,925$ 2020-0029 LMH2619 Building Condition Assessments (BCA) 1/3 of the Portfolio 44,298$ 44,298$ 2020-0030 LMH2619 CRW Office Security upgrades 7 Sites (Simcoe, Dundas, Kent, Albert, Berkshire, McNay, Walnut) 80,500$ 33,905$ 46,595$ 2020-0031 LMH2619 Universal Access Upgrades Various Sites 58,000$ 58,000$ 2020-0032 LMH2619 Asbestos Re-assessment Various Sites 17,000$ 17,000$

Total Other Capital 275,723$ 75,925$ 153,203$ 46,595$ TOTAL Capital Allocation 4,000,000 2,200,000 1,309,786 490,214AVAILABLE BUDGET 4,000,000 2,200,000 1,309,786 490,214DIFFERENCE 0 0 0 0

Lifecycle Renewal 2020

36 of 52

Appendix B: Infrastructure Gap Business Case Performance Metrics

Please note: these metrics are reported on a cumulative basis. For example, in 2021, an additional 2% of high impact requirements are addressed and cumulatively to date 5% of high impact requirements are addressed.

Metric Description (Cumulative) 2020 2021 2022 2023

% of 2019-2028 High Impact Requirements Addressed through Capital Funding

3% 5% 9% 14%

% of 2019-2028 Medium Impact Requirements Addressed through Capital Funding

1% 2% 7% 15%

37 of 52


TO: London & Middlesex Community Housing Board of Directors FROM: Bill Leslie, Manager of Construction and Capital Projects & Nick van der Velde,

Interim Director of Finance SUBJECT: March 2020 – Capital Work Update DATE: April 9, 2020 RECOMMENDATION: That, on the recommendation of the Manager of Construction and Capital Projects and interim Director of Finance with concurrence of the interim Chief Executive Officer, the Board of Directors:

A) RECEIVE for information purposes the March 2020 – Capital Work Update that shows that:

a. The SHAIP Capital program concludes the following projects: i. Complete: 18

ii. Active: 2 a) Re-tendering: 1 (Dundas Cladding)

iii. Cancelled: 1

b. 2018 Capital Program concludes the following projects: i. Complete: 11

ii. Active: 3 iii. Cancelled: 3

c. 2019 Capital Program concludes the following projects:

i. Complete: 9 ii. Active: 2

iii. Cancelled: 9

B) RECEIVE for information purposes that on March 20, 2020, London & Middlesex Community Housing (LMCH) forwarded all Substantial Performance Certificates to the City of London for release of funding under the SHAIP Capital Program. Effectively, LMCH satisfied the program deadline of March 31, 2020 for all SHAIP related capital projects,

38 of 52

with the expectation of capital project 2018-001 and 2018-002 its EIFS cladding component, which have been provided with an extended deadline of project completion by June 30, 2020.

BACKGROUND: The following report offers a high-level analysis and explanation of LMCH’s current and future capital projects, including an update on SHAIP.

39 of 52

SHAIP Update – Capital Work Program

1. Complete

2018-0012 – MUA Replacement 2018-0029 – MUA Replacement 2018-0042– MUA Replacement 2018-0043– MUA Replacement 2018-0044 – MUA Replacement 2019-0002– Solar Walls 2019-0002– Solar Walls 2019-0002– Solar Walls 2019-0002– Solar Walls 2019-0019 - SHAIP specific post project for three years following completion 2019-0024 – Lighting Upgrades 2019-0024– Lighting Upgrades 2019-0024– Lighting Upgrades 2019-0024– Lighting Upgrades 2019-0024– Lighting Upgrades 2019-0024– Lighting Upgrades 2019-0029 – Architecture and Design

2. Active

2018-001 – Cladding & Solar Walls

3. Retendering 2018-002 – Cladding (Solar Walls complete)

4. Cancelled 2019-0025 – MUA Mod Note: On March 20, 2020, London & Middlesex Community Housing (“LMCH”) forwarded all Substantial Performance Certificates to the City of London for release of funding under the SHAIP Capital Program. Effectively, LMCH satisfied the program deadline of March 31, 2020 for all SHAIP related capital projects, with the expectation of capital project 2018-001 and 2018-002 and its EIFS cladding component, which have been provided with an extended deadline of project completion by June 30, 2020.

40 of 52

2018 Capital Program

1. Complete 2018-0004 - Universal Access Upgrades 2018-0008 - Lounge Upgrades 2018-0009 - Exterior Lighting Upgrade 2018-0010 - Elevator Modernization 2018-0014 - Exterior Windows & Doors 2018-0015 - Exterior Windows & Doors 2018-0018 - Fire Panel Upgrades 2018-0019 - Fire Panel Upgrades 2018-0020 - Electrical Systems Review 2018-0034 - Exterior Doors 2018-AMP - Asset Management Plan - HSC Consult

2. Active

2018-0003 - Exterior Lighting Redesign Project 2018-0022 - Asbestos Re-assessment 2018-0023 - Technology Contingency

3. Cancelled 2018-0005 - Bathroom Rebuilds 2018-0013 - LEAC Shield - Under investigation for silica build up on equipment 2018-Tech - New Server

41 of 52

2019 Capital Program

1. Complete 2019-0001 - Door Replacements 2019-0008 - Elevators – Operations 2019-0011 - Asphalt - Parking lots and pathways 2019-0012 - Major Elevator Upgrade 2019-0014 - Physical Security Upgrades 2019-0015 - Bathroom Rebuilds 2019-0016 - Unit Flooring 2019-0017 - Technology Contingency 2019-0026 - Lounge Air Conditioning

2. Active

2019-0039 - Fire Alarm Panel Replacement 2019-0004 - Lobby Upgrades

3. Cancelled 2019-0003 - Generator Replacements 2019-0005 - Corridor Painting 2019-0006 - Boiler Replacement 2019-0007 - Boiler Replacement 2019-0009 – Windows/Doors 2019-0010 – Balcony Study 2019-0013 - Universal Access Upgrades 2019-0037 - Generator Replacements 2019-0038 - Generator Replacements

42 of 52

PREPARED and SUBMITTED BY: PREPARED and SUBMITTED BY:

Bill LESLIE MANAGER, CONSTRUCTION & CAPITAL PROJECTS

NICK VAN DER VELDE INTERIM DIRECTOR OF FINANCE



43 of 52

STAFF REPORT 2020 - 17 TO: London & Middlesex Community Housing Board of Directors FROM: Nick van der Velde, Interim Director of Finance SUBJECT: January 2020 Financial Results Summary – Operating and Capital Results DATE: April 9, 2020

RECOMMENDATION: That, on the recommendation of the Interim Director of Finance and the Finance Manager with concurrence of the Interim Chief Executive Officer, the Board of Directors:

A) RECEIVE for information purposes the January 2020 Financial Performance Results and its Operating Summary Report1 that shows an operating deficit of $(240,549) with $(140,860) exceeding the 2019 year-to-date budget due to the following principal reasons:

1. Higher expenditures due to increased move-outs and unit-turn over in the month of January;

2. Increased service contracts (such Snow Removal, which increased in 2019; 3. LMCH is waiting for the recovery of multiple insurance claims related to

multiple fires, a sewer back up and a flood.

B) RECEIVE for information purposes the January 2020 Financial Performance Results and its Capital Summary Report2 that shows as of January 31st, 2020, a total expenditure of $438,965 on open and budgeted capital projects.

1 Currently, London & Middlesex Community Housing does not have an Operating Budget or Capital Budget in place for the calendar year of 2020. This is due to 2020-2023 Multi-year Budget process and the new operating and capital budgets submitted to the City of London, which would not be approved to March 2020. At the time of writing this report, Multi-year budgets received approval by City Council on March 2, 2020. It is expected that LMCH will have a 2020 Operating and Capital Budget in place for the next Board meeting, tentatively schedule on May 14, 2020; 2 Ibid.

44 of 52

BACKGROUND: The following report offers a high-level and detailed analysis of LMCH’s January 2020 Financial Results for both operating and capital expenses. 2020 OPERATING BUDGET NOT FINALIZED: As the 2020 Operating Budget has not been created yet (due to 2020-2023 Multi-year Budget process and receiving approval of final operating budgets by March 2, 2020), the January 2020 expenses are measured against the 2019 Budget. ANALYSIS: January 2020 Financial Results - Operating The YTD operational results at January 31, 2020 ended with an operating Deficit of $(240,549) with $(140,860) exceeding the 2019 year-to-date budget. The analysis include: Revenue

1. Municipal Base Funding: $932,921 - Municipal Base Funding adjusted to $11,195M due to 2020-2023 Multi-Year Budget Process.

Expenditures

1. Salaries, Wages & Benefits - $563,071 - January 2020 includes a higher staff count compared to January 2019 - hence, January 2020 staff expenditures are higher;

2. Building, General - $81,541 - Building, General expenditures are higher as 51 units were turned over in January;

3. Equipment - $14,806 - At times, LMCH purchases stoves and/or fridges in bulk to create cost savings on equipment purchases;

4. Snow Removal - $121,800 - Snow Removal Contract increased significantly in 2019, due to renewal of contract;

5. Painting - $56,311 - Painting Expenditures are higher as 51 units were turned over in January;

6. Security - $40,932 - Expenditures related to Security and Guard Services for Simcoe St., Dundas St., 345/349 Wharncliffe. In January 2019, there was no additional security for these sites;

7. Municipal Taxes - $417,968 - Municipal Taxes have decreased for LMCH based on the work with RYAN Consulting in 2019;

8. Extraordinary Losses – Fire, wind, etc. - $48,545 – Related to various insurance claims. (Fire @ Walnut St. |Fire @ 107-1481 Limberlost Rd. | Sewer back-up @ 64-370 Pond Mills Rd. | Flood @ Walnut St.)

45 of 52

January 2020 Financial Results - Capital Note: Per request of the Board of Directors in the December 2019 board meeting, the capital section of this report has been updated to reflect special funding programs, such as SHAIP and capital programs per year, including the calendar years of 2018 and 2019. 2020 CAPITAL BUDGET NOT FINALIZED: As the 2020 CAPITAL Budget has not been created yet (due to 2020-2023 Multi-year Budget process and receiving approval of final operating budgets by March 2, 2020), the report only illustrates capital expenditures for the month of January 2020. The expenses are not measured against a budget at this point in time. Total Capital Program - As of January 31st, 2020, a total of $438,965 has been spent on open and budgeted capital projects. Breakdown by Program and Year3 SHAIP - In summary, as of January 31st, 2020, a total of $162,727 has been spent on open and budgeted capital projects for the SHAIP program. 2018 - In summary, as of January 31st, 2020, a total of $139,537 has been spent on open and budgeted capital projects for the 2018 capital program. 2019 - In summary, as of January 31st, 2020, a total of $136,701 has been spent on open and budgeted capital projects for the 2019 capital program. Additional Information for Capital - 2019 represented one of the largest programs of capital spending for LMCH in recent years with a $5.36 Million budget under the SHAIP program.

• The total capital budget for 2019 is $10.668 Million representing over 60 projects.

3 The Capital Program has a section named “Outstanding Invoices”, which are non-material and relate to a variety of projects in the 2016, 2017 and 2018 capital program years. Therefore, it is not mentioned specifically in this breakdown by program and year.

46 of 52

CONCLUSION: Operating - LMCH will continue to manage operating spending within the current budgetary guidelines and will work to mitigate unanticipated costs as they arise during the fiscal year. Capital - Capital spend continues to be in line with expectations and the SHAIP projects continue to take priority due to the inherent time constraints that are attached to the provincial funding. The Property Services team feels confident in their ability to spend the remainder of the SHAIP funding in the appropriate time period as instructed by City of London Administration.

PREPARED and SUBMITTED BY: PREPARED and SUBMITTED BY:

Nick van der Velde (INTERIM) DIRECTOR OF FINANCE

Kara Van Slyke FINANCE MANAGER


Andrea MacKenzie (INTERIM) CHIEF EXECUTIVE OFFICER

Bill Leslie MANAGER OF CONSTRUCTION AND CAPITAL PROJECTS

Attachments: Appendix 1: January 2020 Financial Results - Operating Appendix 2: January 2020 Financial Results – Capital

47 of 52

Appendix 1: January 2020 Financial Results

48 of 52

49 of 52

50 of 52

51 of 52

Appendix 2: Capital 2020 Capital Actuals, as of January 31, 2020

52 of 52

1 of 52 - LMCH · 2020. 4. 28. · K. Van Slyke Manager, Finance T. Smuck Manager, Community...

Documents

Transcript of 1 of 52 - LMCH · 2020. 4. 28. · K. Van Slyke Manager, Finance T. Smuck Manager, Community...