Report: Business Board - October 7, 2019

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

UNIVERSITY OF TORONTO

THE GOVERNING COUNCIL

REPORT NUMBER 248 OF THE BUSINESS BOARD

October 7, 2019

To the Governing Council,

University of Toronto.

Your Board reports that it met on Monday, October 7, 2019 at 5:00 p.m. in the Council Chamber, Simcoe Hall, with the following members present:

Present:
Brian D. Lawson (Chair), Kenneth S. Corts, Acting Vice-President, University Operations, Kelly Hannah-Moffat, Vice-President, Human Resources & Equity, Sheila Brown, Chief Financial Officer, Robert G. Boeckner, K. Sonu Gaind, Gary D. Goldberg, Sue Graham-Nutter, Yining (Elin) Gu, Sarosh Jamal, Kathryn A. Jenkins, Joan Johnston, Anna Maria Kennedy, Jan K. Mahrt-Smith, Joanne McNamara, John Paul Morgan, Susan Rodgers, Ian Taylor, Chris Thatcher, Keith Thomas, Laurent-Philippe (L.P) Veilleux

Regrets:
Preet Banerjee, David Bowden, Brian A. Miron, Bruce Winter

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

Non-Voting Assessors:
Scott Mabury, Vice-President, Operations and Real Estate Partnerships, David M. Estok, Vice-President, Communications, David Palmer, Vice-President, Advancement, Angela Hildyard, Special Advisor to President and Provost, Trevor Rodgers, Assistant Vice-President, Planning and Budget, Gilbert Delgado, Chief, Planning, Design and Construction, Saher Fazilat, Chief Administrative Officer, UTM, Andrew Arifuzzaman, Chief Administrative Officer, UTSC, Christine E. Burke, Director, Campus and Facilities Planning, Ron Saporta, Chief Operations Officer, Property Services & Sustainability

In Attendance:
Ellie Ade Kur, Student, Donald Ainslie, Co-Chair, Landmark Committee on the Historic Campus, Alex Brat. Executive Director, Labour Relations, Elizabeth Brown, Brown Mills Klinck Prezioso, Elizabeth Church. Director Stakeholder Relations, Sarah Colbourn, Student, Elizabeth Cragg, Director, Office of the Vice-President, Operations and Real Estate, Partnerships (VPOREP), Manny Dehan, Student, Andrew Ebejer, Andrew Legal Counsel, Labour and Employment, Rosalyn Figov, Chief Operations Officer, Office of the Vice-President Human Resources and Equity (VPHRE), Cheryl Gibbs, Assistant Director, Office of the Vice-Provost Students, Susan Mazza, Special Projects Officer, Office of the President, Julie McAlpine-Jeffries, Senior Legal Counsel, Labour & Employment, Cynthia Messenger, President, University of Toronto Faculty Association (UTFA), Gillian Morrison, Assistant Vice President, University Development, Joshua Mitchell, Director, Real Estate, Steven Moate, Office of the President, Pierre Gilles Piché, Controller and Director of Financial Services, Lucinda Jiang Qu, Student, Tracey Rutledge, Executive Director, Alumni Relations and Development, Allan H. Shapira, Aon, Daren Smith, President and Chief Investment Officer, University of Toronto Asset Management Corporation (UTAM), Sandy Welsh, Vice-Provost, Students

IN CAMERA ITEMS 21(a)(i), 21(b)(i), 21(c)(i), 21(d)(i) AND 21(e)(i) WERE RECOMMENDED TO THE GOVERNING COUNCIL FOR APPROVAL. ITEMS 6 AND 10; AND IN CAMERA ITEMS 20(a), 20(b), 21(a)(ii), 21(b)(ii), 21(c)(ii), 21(d)(ii), 21(d)(ii), 21(e)(ii), 21(f), 21(g) WERE APPROVED. ALL OTHER ITEMS WERE REPORTED TO THE GOVERNING COUNCIL FOR INFORMATION.

Pursuant to section 33(i) of By-Law Number 2,
items 17 to 21(a-g) were considered in camera.


OPEN SESSION

1. Chair’s Remarks

The Chair welcomed new and returning members and guests to the meeting.

The Chair sought approval to re-order the agenda.

On motion duly moved, seconded and carried


YOUR BOARD APPROVED

THAT Item 15 “Other Business” be moved forward under Item 1.

15. Other Business

The Chair advised members that four speaking requests from non-members on the matter of student mental health issues had been received prior to the meeting to address the Board, which he had granted. Mr. Lawson stated that it was a difficult situation for many people that had been impacted by the recent loss of a student including those attending the Board meeting – as part of the discussion, he encouraged everyone to conduct themselves in a respectful and civil manner. The Chair invited Professor Kelly Hannah-Moffat, Vice-President, Human Resources and Equity, to make some opening comments.

Professor Hannah-Moffat remarked on the exceptional difficulty on campus in dealing with the death of a student; many had been deeply affected, both professionally and personally. She stated that Professor Sandy Welsh, Vice-Provost Students, had spoken to the family and the University wished to respect their privacy. The University continued to make efforts to support its students, faculty and staff; and that it was a shared responsibility to do so. She stated that there was a need to undertake additional work to address mental health issues.

The Chair invited the following students to address the Board: Lucinda Qu, Manny Dehan, Sarah Colbourn and Ellie Ade Kur. The students offered condolences. They expressed concern about the University’s mental health policies and practices; and in their opinion, commented that the University had a duty to accommodate and that it had not adequately allocated resources and funding for students to access mental health services. They also expressed a need to create ongoing opportunities for dialogue about mental health and the stigmas associated with mental illness; as well as issues on anti-black racism, meaningful representation and self-determination, and issues of reconciliation regarding members of the indigenous community. References were also made to the University-Mandated Leave of Absence Policy and the responsibility of the administration to act by increasing staffing levels to meet the growing needs of those students registered with student health services. The students also commented that better efforts were required for dedicated fundraising to support student mental health initiatives.

The Chair thanked the students for their comments and offered an opportunity for the Vice-President, Human Resources to respond to the students’ concerns and comments.

Professor Hannah-Moffat thanked the students for their bravery and commitment to the issues. She assured them that the University did hear them and was equally as concerned about the issues raised about anti-black racism and mental health and the need to do better and to continue to have conversations. She stated that the University would continue to collectively move forward in partnership with government and mental health service agencies to take meaningful steps to address mental health needs. Professor Hannah-Moffat expressed the importance for students to thrive and succeed; and the University’s commitment not just in terms of helping students achieve academic success, but also supporting them through to the next stage in their life.

The Chair invited additional comments. Individuals commented on waiting periods and fees associated with accessing student mental health services, as well as the stigma associated with mental illness.

In response to Members’ comments and questions, the Vice-President, Human Resources and Equity outlined some of the steps taken to address student mental health issues and needs. These included an allocation of $3 million in support of student services working with community partners; expansion of counselling support across the tri-campus; the launching of a task force with representation from students, faculty staff with a goal to bring forward recommendations at year-end; and a 24-hour counselling service offered in multiple languages. Professor Hannah-Moffat stated that she would undertake to provide a presentation to the Business Board at its next meeting regarding operational issues associated with student mental health services and an overview of the real action underway.

The Chair once again thanked the students and Professor Hannah-Moffat for their remarks.

No other business was raised.

The Chair called for a short recess.

RECESS

THE MEETING RE-CONVENED

2. Annual Report: Vice-President, Advancement

The Board received the Annual Report (2018-2019) of the Vice-President, Advancement (VPA) for information. A copy of the University Advancement Performance Indicators (FY 2018-2019) was made available to members.

In response to Members’ comments and questions, the Vice-President, Advancement stated that mental health was a major priority for the University as part of its fundraising efforts and that there was growing public interest in the issue. Prior, during and post-Boundless campaign support in the amount of $90 million had been raised to support specific purposes based on the academic plans of units and divisions, particularly research, for the Faculty of Medicine and the Dalla Lana School of Public Health. Mr. Palmer clarified that the majority of funds raised were designated/restricted, as opposed to a minor amount of funding for unrestricted purposes – he undertook to communicate the differences in future reports.

The Chair thanked Mr. Palmer for his report.

3. Investments: Semi-Annual Update on Investment Performance to June 30, 2019

The Board received the Semi-Annual Update on Investment Performance to June 30, 2019, for information.

In response to a member’s question, Mr. Daren Smith, President and Chief Investment Officer, UTAM, responded that in the 6-month reporting period for 2019, the Long-Term Capital Appreciation Pool (LTCAP) and Pension underperformed the Reference Portfolio by about 2.5%. He explained that much of the underperformance was due to private market investments that underperformed their public market benchmarks, which had generated above-average returns in the first six months of the year (e.g. US equities were up close to 20% and Canadian Government bonds were up over 6%). In addition, there were a few public market managers that had significantly underperformed. Mr. Smith indicated that value-added over the long-term remained strong (over 1% on a 5 and 10 year basis) and that UTAM was not planning to make significant changes to the portfolio as a result of the short-term underperformance.

The Chair thanked Mr. Smith and Ms Brown for the report.

4. Endowment Annual Financial Report for the Year ended April 30, 2019

The Board received the Endowment Annual Financial Report for the Year ended April 30, 2019, for information.

5. Status Report on Debt to September 30, 2019

The Status Report on Debt to September 30, 2019 was received for information.

6. Revisions: University Funds Investment Policy

Sheila Brown, Chief Financial Officer, provided some background with respect to the proposed changes to the Policy. Ms Brown explained that an analysis of historical cash inflows and outflows was performed over a lengthy period to assess seasonal cash flow patterns and liquidity requirements. She added that the investment return target and risk tolerances for the short-term portfolio were reviewed and an investment return target and risk tolerance for the proposed medium-term portfolio was selected. Ms Brown noted that the proposed changes reflected conservative assumptions regarding future cash flows.

On motion duly made, seconded and carried

YOUR BOARD APPROVED

THAT the Business Board approve the University Funds Investment Policy, dated October 7, 2019, attached as Appendix C to the Memorandum from Sheila Brown, Chief Financial Officer, dated September 3, 2019, replacing the University Funds Investment Policy dated June 21, 2017.

7. Health and Safety: Quarterly Report on Compliance,

The Quarterly Report on Compliance (June 1, 2019 – September 30, 2019) was received by the Board for information.

8. Reports of the Administrative Assessors

There were no reports of the administrative assessors.

OPEN SESSION CONSENT AGENDA

On motion duly moved, seconded and carried

YOUR BOARD APPROVED

THAT the consent agenda be adopted.

9. Approvals Under Summer Executive Authority

The report on Approvals Under Summer Executive Authority was received for information.

10. Report of the Previous Meeting

Report number 247, from the meeting of June 18, 2019, was approved.

11. Business Arising from the Report of the Previous Meeting

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

12. Report number 133 of the Audit Committee (June 17, 2019)

Report number 133 of the Audit Committee, June 17, 2019, was received for information.

13. Credit Reports: Dominion Bond Rating Service (DBRS) and Moody’s Investor Services

The reports were received for information.

14. Calendar of Business, 2019-2020

The Calendar of Business (2019-2020) was received for information.

CLOSING ADMINISTRATIVE MATTERS

16. Date of the Next Meeting – Wednesday, November 27, 2019

The Chair advised members that the next meeting would be Wednesday, November 27, 2019 starting at 5:00 p.m.

IN CAMERA SESSION

The Board moved In Camera

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

There were no in camera reports of the administrative assessors.

18. Update: University Pension Plan Ontario [“the UPP”]

The Board received an update on the proposed University Pension Plan Ontario.

19. Quarterly List of Donations of $250,000 or more to the University of Toronto – May 1, 2019 to July 31, 2019

The Quarterly Report was received by the Board for information.

20. Employee Pension Contribution Increases and Compensation

(a.) OPSEU Local 578

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 September 13, 2019, regarding Employee Pension Contribution and Compensation Increases for OPSEU Local 578 bargaining unit.

(b.) CUPE 3902, Unit 3

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 September 13, 2019, regarding Employee Pension Contribution and Compensation Increases for CUPE 3902, Unit 3 bargaining unit.

21. Capital Projects:
(a.) New Student Residence at the University of Toronto Scarborough – Revised

Total Project Cost and Sources of Funding

(i) Financing Requirement

On a motion duly moved, seconded and carried

YOUR BOARD RECOMMENDED

THAT the recommendation of Professor Scott Mabury, Vice-President, Operations and Real Estate Partnerships, as outlined in the memorandum dated September 19, 2019, regarding the revised financing of the New Student Residence at the University of Toronto Scarborough capital project, be approved.

(ii) Execution of the Project

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 September 19, 2019, regarding the execution of the New Student Residence at the University of Toronto Scarborough capital project.

(b.) Spadina Sussex Residence

(i) Financing Requirement

On a motion duly moved, seconded and carried

YOUR BOARD RECOMMENDED

THAT the recommendation of Professor Scott Mabury, Vice-President, Operations and Real Estate Partnerships, as outlined in the memorandum dated September 19, 2019, regarding the financing of the Spadina Sussex Residence capital project, be approved.

(ii) Execution of the Project

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 September 19, 2019, regarding the execution of the Spadina Sussex Residence capital project.

(c.) Landscape of Landmark Quality

(i) Financing Requirement

On a motion duly moved, seconded and carried

YOUR BOARD RECOMMENDED

THAT the recommendation of Professor Scott Mabury, Vice-President, Operations and Real Estate Partnerships, as outlined in the memorandum dated September 19, 2019, regarding the revised financing of the Landscape of Landmark Quality capital project, be approved.

(ii) Execution of the Project

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 September 19, 2019, regarding the execution of the Landscape of Landmark Quality capital project.

(d.) Geothermal System at King’s College Circle

(i) Financing Requirement

On a motion duly moved, seconded and carried

YOUR BOARD RECOMMENDED

THAT the recommendation of Professor Scott Mabury, Vice-President, Operations and Real Estate Partnerships, as outlined in the memorandum dated September 19, 2019, regarding the financing of the Geothermal System at King’s College Circle capital project, be approved.

(ii) Execution of the Project

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 September 19, 2019, regarding the execution of the Geothermal System at King’s College Circle capital project.

(e.) Geothermal System at Robert Street Field

(i) Financing Requirement

On a motion duly moved, seconded and carried

YOUR BOARD RECOMMENDED

THAT the recommendation of Professor Scott Mabury, Vice-President, Operations and Real Estate Partnerships, as outlined in the memorandum dated September 19, 2019, regarding the financing of the Geothermal System at Robert Street Field capital project, be approved.

(ii) Execution of the Project

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 September 19, 2019, regarding the execution of the Geothermal System at Robert Street Field capital project.

(f.) 700 University, 4th Floor: Fit-out for the Department of Statistical Sciences and A&S Professional Masters Hub – Execution of the Project

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 September 19, 2019, regarding the execution of the 700 University, 4th Floor: Fit-out for the Department of Statistical Sciences and A&S Professional Masters Hub capital project.

(g.) Facilities Master Plan at the Koffler Scientific Reserve – Execution of the Project

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 September 19, 2019, regarding the execution of the Koffler Scientific Reserve capital project.

The Board returned to open session.

The meeting adjourned at 7:54 p.m.