Report: Business Board - November 27, 2019

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Simcoe Hall, 27 King’s College Circle, Governing Council Chamber 2nd Floor

REPORT NUMBER 249 OF THE BUSINESS BOARD
November 27, 2019

To the Governing Council,
University of Toronto.

Your Board reports that it met on Wednesday, November 27, 2019 at 5:00 p.m. in the Council Chamber, Simcoe Hall, with the following members present:

Present:
Brian D. Lawson (Chair) Bruce Winter (Vice-Chair) Kenneth S. Corts, Acting Vice-President, University Operations Kelly Hannah-Moffat, Vice-President, Human Resources & Equity
Preet Banerjee Robert G. Boeckner K. Sonu Gaind Gary D. Goldberg Sue Graham-Nutter Sarosh Jamal Joan Johnston Anna Maria Kennedy Jan K. Mahrt-Smith Joanne McNamara Brian A. Miron* John Paul Morgan Susan Rodgers Ian Taylor Chris Thatcher Keith Thomas Laurent-Philippe (L.P) Veilleux
* via conference call

Regrets:
David Bowden Sheila Brown Yining (Elin) Gu Kathryn A. Jenkins

Secretariat:
Sheree Drummond, Secretary of the Governing Council
Anwar Kazimi, Deputy-Secretary of the Governing Council
Patrick F. McNeill, Secretary

Non-Voting Assessors:
Professor Cheryl Regehr, Vice-President and Provost
Scott Mabury, Vice-President, Operations and Real Estate Partnerships
Angela Hildyard, Special Advisor to President and Provost
Trevor Rodgers, Assistant Vice-President, Planning and Budget
Ron Saporta, Chief Operations Officer, Property Services & Sustainability

In Attendance:
Elizabeth Brown, Brown Mills Klinck Prezioso; Lucy Chung, Faculty of Arts and Science (FAS); Brian Coates, Chief Financial Officer, Faculty of Applied Science and Engineering (FASE); Elizabeth Cragg, Director, Office of the Vice-President, Operations and Real Estate Partnerships (VPOREP); Rosalyn Figov, Chief Operations Officer, Office of the Vice-President Human Resources and Equity (VPHRE); Roger Francis, Executive Director, Engineering Career Centre, FASE; Vicki Lowes, Director, Experiential Learning and Outreach Support, FAS; Susan Mazza, Special Projects Officer, Office of the President; Kim McLean, Chief Administrative Officer, Faculty of Arts and Science (FAS); Joshua Mitchell, Director, Real Estate; Steven Moate, Office of the President; Jay Pratt, Vice-Dean, Research & Infrastructure, FAS; Pierre Gilles Piché, Controller and Director of Financial Services; Allan H. Shapira, Aon; Daren Smith, President and Chief Investment Officer, University of Toronto Asset; Management Corporation (UTAM); Chris Yip, Dean, Faculty of Applied Science and Engineering; Sandy Welsh, Vice-Provost, Students.


IN CAMERA ITEMS 14(a), 15, 16, 17 and 18 WERE APPROVED. ALL OTHER ITEMS WERE REPORTED TO THE GOVERNING COUNCIL FOR INFORMATION.

Pursuant to section 33(i) of By-Law Number 2,
items 12 to 18 were considered in camera.

OPEN SESSION

  1. Chair’s Remarks

The Chair welcomed members and guests to the meeting.

  1. Closure and Conversion of the University of Toronto Pension Plan [“the current UofT Pension Plan”]; and Proposal for the Establishment of the University Pension Plan Ontario [“the UPP”]

The Chair referred members to the updated presentation in the agenda materials and described the governance path for the UPP item noting that it would be considered for approval by the Governing Council at its meeting on December 12, 2019.

Members received an update for information from Professors Kelly Hannah-Moffat and Angela Hildyard. Professor Hildyard reported that following a comprehensive national search, the UPP Joint Sponsors – comprising the Employee Sponsor (Faculty Associations, United Steel Workers locals, and CUPE locals) and the Employer Sponsor (University of Toronto, University of Guelph and Queen’s University) had announced the selection of Ms. Gale Rubenstein as the inaugural Chair of the UPP Board of Trustees. She stated that members of the UPP Employer Sponsor Committee had been selected – all six members had expertise in finance, investments and human resources. She added that the membership of the UPP Employee Sponsor group would be announced at a later date.

The Chair thanked Professors Hannah-Moffat and Hildyard for their comments.

  1. Update on the Budget Model Review (“BMR”)

Mr. Trevor Rodgers provided an overview of the Budget Model Review, which had begun in 2018 and was expected to conclude by the end of the year. Mr. Rodgers noted that key to the success of the University’s budget model was its adherence to three principles:

  • transparency (clear delineation of revenue and expense by division);
  • incentives (local decision-making and allocations linked to performance indicators, revenues, and costs), and
  • engagement (consultation and review processes).

Mr. Rodgers noted that the University’s budget model had been adopted in 2006, and that the last comprehensive review had been undertaken in 2010-11. He explained that as provincial support continued to decline and began to shift toward performance-based metrics, it was an opportune time to ensure that the budget model would continue to serve the University well into the future.

The objective of the BMR was to improve budgetary processes across a number of different areas. The Review was divided into five pillars:

  1. Inter-Divisional Teaching Working Group
  2. Alternative Funding Sources Advisory Group
  3. Strategic Mandate Agreement Budget Implementation Committee
  4. Operational Excellence Working Group
  5. Tri-Campus Budget Relationships Working Group

In response to members’ questions and comments, Provost Regehr, Professor Mabury and Mr. Rodgers stated the following:

  • administrative and academic units were permitted to carry-forward unspent operating funds from year to year, primarily for operating contingencies and contributions to capital projects; however, the bulk of carry-forwards resided in the academic divisions;
  • no changes to the revenue allocation model were contemplated as part of the Budget Model Review;
  • allocations from the University Fund had been used to offset financial pressures for divisions in 2019 as a result of the 10% cut in tuition fees; and
  • as part of a real estate strategy, the University hoped to generate $50 million in revenues by 2033.
  1. Report on Capital Projects

The Board received the Report on Capital Projects for the period ending October 31, 2019, for information.

  1. Reports of the Administrative Assessors

Health and Wellness Missed Appointment Fees

In response to questions raised at the previous Board meeting, Professor Hannah-Moffat, VPHRE, invited Professor Sandy Welsh, Vice-Provost, Students to provide an overview of the process associated with missed appointment fees related to student health and wellness services.

Highlights included the following:

  • missed appointment fees were a common feature of the broader health care system and a common feature at other student Health & Wellness clinics in the University sector in order to utilize student fees efficiently, deter cancellation, and fund the compensation of health care staff;
  • the primary concern was the health and well being of all students and improving access to services;
  • missed appointments were a lost opportunity to ensure timely care for those students – for every missed appointment or no-show, there was another student waiting for care who could not be seen by a mental health or other practitioner; and
  • missed appointments increased wait times and demands for services – the cost was a loss of resources for other students.

In response to members’ questions and comments, Professor Welsh stated the following:

  • as part of the practices at St. George campus, the Health & Wellness Centre provided online appointment reminders to students – the University waived or forgave fees when there were circumstances outside the student’s control for missing the appointment;
  • students did not lose access to services when charged a missed appointment fee – this was stated clearly on the website;
  • in total, $210,000 was charged in previous year for missed appointments (fees range from $30 - $100 depending on the health care professional and length of appointment);
  • the fees allowed the Health and Wellness Centre to maintain its high-quality OHIP-funded doctors, psychiatrists and other health care professionals. The Centre did not feel it was fair to use student ancillary fees to cover the cost of missed appointment fees;
  • data showed that missed appointment fees were helpful for reducing the number of missed appointments;
  • in 2009, when the University did not have missed appointment fees, the rate of missed appointments was 15%; in 2018-19, the rate was 6%.

Professors Regehr and Welsh reiterated the importance of the issue and that the University continued a review to look at alternatives including better communications providing clear messaging on process. The Provost and Vice-Provost expressed their thanks to members for their suggestions and input regarding possible changes and improvements in practices and policy with a goal to make the process of delivering mental health services on campus more student-focused.

The Chair thanked Professor Welsh for attending.

Strategic Mandate Agreement (SMA3)

Professor Regehr provided an update on the pending renewal of the three year Strategic Mandate Agreement (SMA) with the Ministry of Training, Colleges and Universities, which the University had signed in the spring 2017. The Provost reported that she had met with Ministry representatives regarding the third SMA (SMA3) and that negotiations were underway with a focus on refining and implementing new metrics and targets.

Update: Student Choice Initiative

Professor Regehr provided an update on the Student Choice Initiative, a provincial directive that allowed postsecondary students to opt out of certain incidental fees deemed “non-essential.”

The Provost stated that on November 22, 2019, the Student Choice Initiative was quashed by the Ontario Divisional Court. The University was reviewing the decision and that it had suspended the online opt-out process while it evaluated the technical impact of this ruling. The Provost reported that the impact of the initiative had decreased revenues in the amount of $1.3 million ($300K attributed to student services and $1M to student society fees).

OPEN SESSION CONSENT AGENDA

On motion duly moved, seconded and carried

YOUR BOARD APPROVED

THAT the consent agenda be adopted.

  1. Report of the Previous Meeting

Report number 248, from the meeting of October 7, 2019, was approved, as amended.

  1. Business Arising from the Report of the Previous Meeting

There was no business arising from the report of the previous meeting.

  1. Status Report on Debt to October 31, 2019

The Status Report on Debt to October 31, 2019 was received for information.

  1. Standard & Poor’s Credit Rating Report (November 14, 2019)

The credit rating report was received for information.

CLOSING ADMINISTRATIVE MATTERS

  1. Date of the Next Meeting – Monday, February 3, 2020

The Chair advised members that the next meeting would be Monday, February 3, 2020 starting at 5:00 p.m.

  1. Other Business

In response to member’s question, Professor Mabury stated that as per the Board’s terms of reference, the reporting out in aggregate form of completed capital projects was part of the regular report on capital projects – a full report would be presented in the next term.

IN CAMERA SESSION

The Board moved In Camera

  1. In Camera Reports of the Administrative Assessors (oral reports)

Professor Kelly Hannah-Moffat reported on a collective agreement matter and related ongoing negotiations.

  1. Quarterly List of Donations of $250,000 or more to the University of Toronto – August 1, 2019 to October 31, 2019

The Quarterly Report was received by the Board for information.

  1. Professional Development Program Enhancements for Professional & Managerial Employee Group (PM) 6 to 11:
  1. Supplemental Professional Development Fund for PM 6 to 11

On motion duly made, seconded and carried

YOUR BOARD APPROVED

The recommendation of Professor Kelly Hannah-Moffat, Vice-President Human Resources and Equity, as outlined in the memorandum dated November 13, 2019, regarding the Supplemental Professional Development Fund for Professional/Managerial Employee Group 6 to 11.

  1. Guideline for PM Employees (PM 9-11) – Leave of Absence with Pay/Professional Development/Education

The Guideline for PM Employees (PM 9-11) Leave of Absence with Pay and Professional Development/Education was received for information.

  1. Special Retirement Program for Faculty Members and Librarians

On motion duly made, seconded and carried

YOUR BOARD APPROVED [1]

The recommendation of Professor Kelly Hannah-Moffat, Vice-President Human Resources and Equity, as outlined in the memorandum dated November 18, 2019, regarding the Special Retirement Program for Faculty Members and Librarians.

  1. Capital Project: 700 University, 17th floor: Fit-out for the Faculty of Arts & Science Interim Space Needs – Execution of Project

On a motion duly moved, seconded and carried

YOUR BOARD APPROVED [2]

The recommendation of Professor Scott Mabury, Vice-President, Operations and Real Estate Partnerships, as outlined in the memorandum dated November 18, 2019, regarding the execution of the 700 University, 17th floor: Fit-out for the Faculty of Arts & Science Interim Space Needs capital project.

  1. Property Acquisition Matter

On a motion duly moved, seconded and carried

YOUR BOARD APPROVED

The recommendation of Professor Scott Mabury, Vice-President, Operations and Real Estate Partnerships, as outlined in the memorandum dated November 27, 2019, regarding a property acquisition matter.

  1. Business Board Striking Committee: 2019-20 Membership

On motion duly moved, seconded and carried

YOUR BOARD APPROVED

THAT the following be appointed to the Business Board Striking Committee to recommend appointments for 2020-2021:

J.P Morgan (Lieutenant-Governor-in-Council)
Sarosh Jamal (Administrative Staff)
L.P Veilleux (Student)
Jan Mahrt-Smith (Teaching Staff)
David Bowden (Alumni)

The Board returned to open session.

The meeting adjourned at 6:55 p.m.

November 28, 2019


[1] Two (2) members declared a conflict of interest and abstained.

[2] A member declared a conflict of interest and abstained.