Report to/Rapport au :
The Shareholder of the Ottawa Community
Housing Corporation/
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
Contact Person / Personne-ressource : Ron Larkin, Chief
Executive Officer, Ottawa Community Housing Corporation/président-directeur
général de la Société de logement communautaire d’Ottawa
613-520-2271
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SUBJECT: |
Ottawa
Community Housing Corporation Annual
Report and Annual General Meeting of the Shareholder |
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OBJET: Rapport Annuel Et Assemblée Générale Annuelle
REPORT
RECOMMENDATIONS
That Council approve:
1. That the 2006/2007 Ottawa Community
Housing Corporation (OCHC) Annual Report be received.
2. That the Audited Financial Statements
of Ottawa Community Housing Corporation (OCHC) for the year 2006 be received.
3. That the Update re: the Ottawa
Community Housing Corporation (OCHC) Strategic Plan be received.
4. That Mr. Denis Chartrand be
re-appointed as a Director of the Ottawa Community Housing Corporation (OCHC)
for a new 3-year term expiring at the time of the Annual General Meeting of
OCHC in 2010.
5. That Ernst and Young be appointed as
the Auditors of Ottawa Community Housing Corporation (OCHC) for the Year 2007.
6. 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.
Que le Conseil
municipal approuve les recommandations suivantes :
1. Que
soit reçu le rapport annuel de 2006-2007 de la Société de logement
communautaire d’Ottawa (SLCO);
2. Que
soient reçus les états financiers vérifiés de 2006 de la SLCO;
3. Que
soit reçue la mise à jour du plan stratégique de la SLCO;
4. Que M.
Denis Chartrand soit nommé de nouveau au poste d’administrateur de la Société
de logement communautaire d’Ottawa pour un autre mandat de trois ans qui
prendra fin à l’assemblée générale annuelle de 2010 de la SLCO;
5. Que la
société Ernst and Young soit désignée vérificatrice de la SLCO pour l’année
2007;
6. 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
2006/07 has been a period of considerable achievements for Ottawa
Community Housing Corporation (OCHC).
OCHC has continued to make substantial investments of efforts and
resources to build upon the five pillars for developing “Stronger Communities”
identified in last year’s Report. The
five pillars include:
· Building & maintaining adequate, appropriate housing stock
· Ensuring safety and security
· Fostering tenant engagement & commitment
· Nurturing community partnerships
· Enhancing organizational capacity and effectiveness
This year’s Annual Report provides highlights of the achievements in the
above areas as well as others related to the primary objective of providing the
highest level of service to OCHC tenants.
Recommendation 2 (Re:
2006 Financial Statements)
In accordance with section 11.01 of Ottawa Community Housing Corporation
By-Law No. 5, OCHC is required to present its audited financial statements for
information to its Shareholder. The 2006 audited financial statements were approved by the OCHC Board of
Directors at its meeting of May 10th, 2007.
The firm of Ernst and Young are OCHC’s auditors. Ms. Deanna Monaghan of Ernst and Young
attended the May 10th Finance and Audit meeting to respond to questions and
comments. Ms. Monaghan confirmed
to the Board 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, 2006. 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 2006.
The
Board-approved 2006 OCHC audited financial statements are appended to this
report as Attachment 1.
Recommendation 3 (Re:
Strategic Plan Update)
The OCH Strategic Plan 2004-2007 was
approved by the OCH Board of Directors in December 2003 and presented to the
Shareholder as a part of the 2004 Annual Report. The plan was structured with a four-year time frame and
identified six strategic priorities with related initiatives, implementation
plans, and performance targets. A brief
review of these priorities and related developments during the past year is
presented below for information.
Since the development of the Strategic
Plan, the Shareholder Direction provided by City Council has brought into very
clear focus the urgent priorities facing the Corporation. Accordingly, the key initiatives that OCH
has pursued in the past year have been aligned with the Direction provided by
the Shareholder, responding to critical concerns related to standards of
maintenance, community safety and security.
Progress on these priorities has also addressed many of the issues that
were identified in the OCH Strategic Plan.
a. Improve Maintenance &
Utilization of Existing Housing
The Building
Condition Assessment Study (BCA) that was launched in 2006 will provide OCH
with a comprehensive assessment of the entire housing portfolio. The inspection of housing units, mechanical
systems, building exteriors and roofs will be completed by late summer 2007 and
provide the data for a comprehensive asset management system. This information will support long term
capital planning and enable a critical evaluation of the existing housing
stock.
Also in 2006, the OCH 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 and to dispatch
community safety services and monitor alarm systems. Maintenance teams assigned to the preparation of vacant units for
turnover have confirmed the benefits of this initiative. Technical Services personnel have been
accredited as mold remediation specialists to more expediently address mold
problems whenever encountered in OCH housing units. In 2007, operational procedures will continue to be examined to
effect further improvements in the delivery of maintenance services.
Recommendation
3 cont’d (Re: Strategic Plan Update)
The lack of adequate maintenance funding
continues to be a primary concern, particularly as it relates to the Public
Housing program. In 2006, in an effort
to improve maintenance standards for this part of the OCH portfolio, it was
necessary to transfer over $1.2 million to cover the operating deficit in the
Public Housing Program. Given that the Community Reinvestment Fund (CRF) was
completely exhausted it was also necessary to utilize Capital Reserves intended
for housing improvements in the Equity Program.
As directed by City Council at the 2006
AGM, there has been a collaborative effort between senior staff from the City
and OCH to develop a sustainable funding model for the Corporation and
specifically for the Public Housing Program.
These efforts are ongoing and the specifics of the model hopefully will
be known by the time of the 2007 AGM.
As an interim measure, City Council, as a part of the 2007 City Budget,
approved a significant increase in both the operating and capital funding for
the Public Housing Program. The
increase in funding permitted service delivery levels to be brought closer to
the standards of the Provincial Reformed Program.
b. Develop New Housing Stock
Although there is a well documented
demand for additional affordable housing in the City of Ottawa, all of the
resources of the Corporation have been required to deal with the requirements
of the existing portfolio. The
Community Reinvestment Fund, established by OCH to develop new housing, has
been completely exhausted. The operating surplus generated by the Equity
Program that has been the source of funding for the CRF will be increasingly
required to fund capital work in the housing stock that forms the Equity
Program. Accordingly, the development of new housing stock has not been achieved
to the degree planned by the Corporation and required by the community.
OCH has not abandoned an interest in the
development of new affordable housing.
Staff and Board Members continue to advocate for the resources necessary
to achieve this objective.
c. Development of Safe and Caring
Communities
The Strategic Plan presented to the
Shareholder in 2004 recognized that improvements to safety and security in OCH
communities would be addressed most effectively by engaging tenants and
strengthening partnerships with community agencies and other stakeholders. The Safer Communities Program, launched in
2005 and more fully implemented in 2006, was shaped by extensive consultation
with tenants, staff and community partners.
The Community Safety Officers who began their work on May 1, 2006 have
become a visible presence in OCH communities, working closely with the Ottawa
Police Services and other stakeholders to improve safety and security in OCHC
communities. Effectively supported by dispatch services provided by the Call
Centre Operators and working in collaboration with OCH Solicitors and staff in
the Operations Districts, Community Safety Services has already become an
integral part of the Corporation.
Learning from experience and reaching out for best practices, the
Community Safety Services is striving to build strong relationships with
tenants and strengthen both internal and external relationships in order to
better serve the needs of OCH tenants and respond to the challenges that impact
on OCH communities.
Recommendation
3 cont’d (Re: Strategic Plan Update)
d. Increase
Tenant Involvement/Empowerment
The Tenant Advisory Group (TAG) has
continued to provide valuable leadership, advising the Board on key
developments and policies and creating valuable resource materials to assist
other tenant leaders in the development and operation of tenant
associations. OCH has continued to
foster the creation of new Tenant Associations and to support the effective
operation of existing TA’s. Approximately
65 OCH communities are currently represented by Tenant Associations. Leaders
from Tenant Associations and from communities without TAs have participated in
District Based Committees (DBCs) in each of the four operations districts. The Chair and Co-Chairs of these DBCs have
worked together as Tenants Working for Tenants (TWFT), an initiative that
pre-dates TAG. TAG and TWFT have
frequently worked together to jointly address concerns and collaborate on
projects.
During a major consultation process
undertaken in early 2007, the Board of Directors has listened carefully to
feedback from tenants and from the broader community and considered how the
tenant engagement structure can be made stronger and more effective. In a separate report, OCH will seek the
approval of the Shareholder to improve the alignment of Tenant Associations,
District Based Committees and the Board of Directors. Currently, members of TAG are appointed by the Board of Directors
and the District Based Committees elect their Chairs and co-chairs who form
TWFT. Under the proposed model, the
DBCs will each elect a chair who will become a member of TAG. Four other members will be appointed by the
Board. As part of a new Board
Governance Model to be presented to the Shareholder for approval, TAG would
elect one of their members to sit directly on the Board of Directors as a full
voting member of the Board.
A recent decision of the Board of
Directors will re-institute the practice of having an annual Tenant Forum to
promote dialogue between tenants and staff and create an opportunity for
tenants to participate in workshops that will provide practical learning
opportunities and promote leadership capacity.
A new initiative will recognize the contribution of tenant volunteers
through an annual award event.
e. Enhance Relationship with the
Shareholder & the Community-at-large
During the 2006 OCH Annual General
Meeting, members of City Council expressed their commitment to the tenants who
make their homes in Ottawa Community Housing.
That commitment was again demonstrated during the 2007 City Budget
process. Despite enormous financial
pressures on the City, City Council approved a significant increase in funding
for OCH. Consistent with the Shareholder Direction to improve maintenance
standards and community safety, Council provided the funding necessary to
improve maintenance in the Public
Housing Program and, for the first time, the funding required to deliver the
Safer Communities Program. In addition
senior City Staff were directed to work with OCH to develop a model of
sustainable funding for the Corporation.
Four City Councilors, and the Mayor as an
ex-officio member, have dedicated their time and energy as Members of the Board
of Directors to ensure that OCH is fulfilling the direction provided by Council
and responding to the issues identified by tenants. These efforts have received strong support from the other members
of Council.
Recommendation
3 cont’d (Re: Strategic Plan Update)
Over the past year, the relationship with
the Ottawa Police Services has continued to develop with a strong focus on
tenant interests. A Fire Prevention
Initiative has been launched with the Ottawa Fire Department. Daily collaboration with a growing number of
social services has made a difference in OCH communities. Media coverage and
public commentary have recognized the sincere and determined efforts that have
been made to improve the living conditions of OCH tenants and the management of
the Corporation.
f. Organizational Development
There have continued
to be incremental changes in the structure of the Corporation and the design of
individual job functions. There is an
ongoing evaluation of business practices and a search for best practices from both
the public and private sectors. There
have been a number of improvements: the management of the investment portfolio;
a reduction of insurance risk; contract management strategies that increase
accountability; the implementation of a new staff evaluation process.
Board governance, including the further development and
implementation of policies and practices, is an area identified in the
2004-2007 Strategic Plan continues to be the subject of considerable discussion
and consultation. After considerable
input from tenants and the general public, and a review of the practices of
other housing providers, the Board will recommend to the Shareholder the
addition of two Community Members, the inclusion of a tenant on the Board who
will be elected by the Tenant Advisory Group.
This proposed new Governance Model will be addressed under a separate
report.
Recommendation 4 (Re:
Re-appointment of Director)
Mr. Denis Chartrand was initially appointed to the Board of Directors of
OCHC in July 2004. During the
intervening three year period he has served very proficiently as Vice-Chair of
the Board and chaired various Ad hoc Committees, notably the one mandated to
oversee the Building Condition Assessment (BCA) of the Corporation’s housing
stock.
Given Mr. Chartrand’s dedicated commitment to OCHC and his expressed
desire to continue as a Board member, the Board members unanimously agreed at
its May 10th meeting to put forth his name for re-apppointment at
the 2006/07 Annual General Meeting of the Shareholder.
Under Article 3.02 of OCHC By-Law No. 5, authority for appointing Board
members vests with the Chairholder and under Article 3.07, a Director may be
re-appionted at the expiration of his/her term of office.
Recommendation 5 (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 are familiar with the
operation of the Corporation and are also auditors for the City of Ottawa, the
Board of OCHC at its May 10th, 2006 meeting approved that the said
firm be recommended to the Shareholder as auditors for OCHC, for the year 2007.
SUPPORTING DOCUMENTATION
Document 1 - Financial Statements