{ "segments": [ { "speaker": "SPEAKER_03", "start": 471.745, "end": 474.005, "text": "Thank you, Chair. To confirm quorum, Councillor Jameson,", "segments_merged": 1 }, { "speaker": "SPEAKER_02", "start": 474.245, "end": 474.625, "text": "President.", "segments_merged": 1 }, { "speaker": "SPEAKER_03", "start": 475.665, "end": 495.705, "text": "Councillor Clark, Councillor Pantozopoulos, Public Member Kim, Public Member McDonald, Public Member Niker, Mayor Farkas. And do we have any other counselors online wishing to participate in today's meeting? And Chair Weines.", "segments_merged": 8 }, { "speaker": "SPEAKER_11", "start": 495.705, "end": 496.025, "text": "Here.", "segments_merged": 1 }, { "speaker": "SPEAKER_03", "start": 496.025, "end": 497.045, "text": "Thank you. We have quorum.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 497.145, "end": 500.785, "text": "Thank you very much. I'm gonna pass it over to Corey Smiley for land acknowledgement.", "segments_merged": 1 }, { "speaker": "SPEAKER_01", "start": 503.165, "end": 590.025, "text": "Oki Mboastich Donata Tonshe. Indigenous peoples have their own names for this area that have been in use long before settlers named this place Calgary. In the Blackfoot language it is called Mojinsis. The Ithaca Nakota Wiskataubi First Nations refer to this place as Wiskaba. Oyade, and the people of the Sutina nation call it Gutsis. The Metis call the Calgary area Otasquane. We appreciate and acknowledge that we are gathered on the ancestral and traditional territory of the Blackfoot nations of the Sikhsika, Bigani, Guinei First Nations, the Ithaca, Nakota, Wiscotabi First Nations, comprised of the Shiniki, Bear's Paw, and Goodstoney First Nations, and the Sutina First Nations. The city of Calgary is also homeland to the historic Northwest Metis and to the Otipemeswak. Métis Government, Métis Nation Battle River Territory, Nose Hill, Metis District 5, and Elbow, Metis District 6. We acknowledge and give gratitude to the many First Nations, Metis and Inuit, who live here and call Calgary home.", "segments_merged": 6 }, { "speaker": "SPEAKER_11", "start": 592.725, "end": 641.225, "text": "Thank you very much, Corey. Uh we'll move on to the confirmation of the agenda. Uh could I get a mover, please? Councillor. Uh public member McDonald to move the uh agenda. Are there any amendments to the agenda today? See none. Uh all in favor of confirmation of the agenda? Motion is carried. Uh confirmation of the minutes. Uh public member Kim? Any corrections anyone noticed? No. Great job. All in favor of moving the minutes. Thank you. Motion is carried. Now it takes us to 7.2 Calgary Housing 2025 annual report. Please come on down. And whenever you're ready to present and settled, begin.", "segments_merged": 18 }, { "speaker": "SPEAKER_10", "start": 669.945, "end": 926.065, "text": "Good morning, members of Audit Committee. My name is Anna Nelson. I'm the chair of the board for Calgary Housing. With me today are Adam Rock in the end here, Board Director and Chair of our Audit and Risk Committee, Boh Zheng, interim president and CEO, and Jana Jankova, VP Finance and Risk Officer. We are pleased to present to Audit Committee our 2025 annual report today. Next slide, please. I'll present a few key highlights for the committee with full details that were provided in the committee report. Our recommendation is that audit committee receive this report and presentation for the corporate record and keep attachment six and the closed meeting discussions confidential pursuant to the Access to Information Act. Next slide, please. Calgary Housing is a wholly owned subsidiary of the City of Calgary and Alberta's largest provider of non market housing. The organization operates as a private corporation under the Alberta Business Corporations Act. Every day we support more than 27,000 Calgarians. Through housing programs that promote stability, dignity, and inclusion. We are continuing to grow our role as a housing developer on behalf of the city, with our strong financial position exemplifying our ability to implement the strategically planned growth while mitigating risk and sustainably growing our reserves for future operating and capital needs. Next slide, please. We are proud to steward housing portfolios owned by the government of Alberta, the city of Calgary, and Calgary Housing. The majority of the homes we offer are operated as mixed income housing, shown in the blue on the slide, on the right hand side, where we offer a range of rents from deeply affordable to near market rates. The mixed income portfolios are fully sustainable, primarily through rent revenues. And Calgary Housing does not receive tax supported operating funding from the City of Calgary. We continue to provide social housing property management services and administer the rent supplement program. On behalf of the province of Alberta, offering housing for low-income households. 95% of our residents were stably housed in 2025. And stably housed is defined as housed for more than three months and not in arrears exceeding 30 days. 75% of residents at resident exits occurred for positive or neutral reasons. The average occupancy rate across our portfolios, CH portfolios in 2025 was 97%. With an average unit turnaround time of 30 days. Next slide, please. 2025 marked the third year of Calgary Housing's eight year strategic plan to achieve the vision of being a leading affordable housing provider in Canada, supporting individual well being and inclusive community building. Our 2023 2030 strategic plan is anchored in four priorities that guide our work supporting resident success, strengthening assets and financial performance. Building organizational excellence, and increasing housing supply and choice. We are focused on advancing all four strategic priorities supported through coordinated delivery across housing development, operations, and asset management, strengthened financial stewardship and disciplined capital planning, expanded partnerships with public and private sector organizations, and continued investment in organizational capacity systems and processes to support sustainable growth. Strategic priority number four, increasing housing supply and choice, was approved at last year's AGM. Since then, CH has successfully accepted the first asset transfer for the province of Alberta, as well as executed on the first acquisition opportunity with ROHIT. I'll now ask Adam to present the financial highlights from 2025.", "segments_merged": 58 }, { "speaker": "SPEAKER_17", "start": 930.965, "end": 1281.785, "text": "Thank you. Calgary Housing's 2025 financials received a clean audit opinion and highlight our strengthening financial position. The current graph pertains only to CH-owned, not city-owned assets that we identified on the previous portfolio slide. CH's 2025 audited financials demonstrate the organization is well positioned to achieve its strategy of increasing housing supply while meeting its obligations to maintain and improve existing housing assets. Over the last decade, CH nearly doubled its total assets from $134 million in 2016 to $245 million in 2025. As a result of growing assets and decreasing liabilities, CH shifted from a net debt position of $10 million in 2016 to a net asset position of $60 million in 2025. That increase in asset value reflects the increasing quality of the assets and enables housing stability. 84% of CH owned and city owned assets are classified as being in good or very good condition despite an average age of nearly 50 years. The same cannot be said of me. In 2025, CH deployed $16.7 million in capital funding to improve the asset condition of our homes. When we look at all portfolios CH manages, we generated a surplus in 2025. Removing one-time items that are not part of our normal operations, such as capital grants and an asset transferred to CH, we generated an $8.6 million surplus. That $8.6 million is funding our operating and capital reserves to meet future maintenance obligations and will be used for capital projects to increase housing supply. Since establishing a reserve target, Calgary Housing has made steady progress. In 2025, our capital reserves reached 31% of the targeted amount. Increasing housing supply typically requires direct equity investment by Calgary Housing. Next slide, please. I will briefly touch on Calgary Housing's top risks identified and managed using the Integrated Risk Management Framework, IRM. Calgary Housing Administration continues to operate a mature, integrated risk management framework aligned with the city's IRM model. Most of our significant risks currently relate to our ability to support growth. This capacity will depend on how fast and how much we can increase affordable housing supply, mitigate funding and procurement constraints, supply chain disruption. Escalating labor and material costs, and geopolitical pressures. Mitigating strategies include strategic procurement, early contractor engagement, alternative construction methods, enhanced project contingencies, and ongoing market monitoring. Provincial capital infrastructure risk, one of our top risks for last year, has decreased in likelihood and impact and is no longer among our top risks for this year. This reflects our ability to mitigate this risk through strategic use of provincial operator rating and emergency capital funding. Notably, in 2025, no extensive risks were identified for Calgary Housing. A key positive outcome reflecting over a decade of assessing, monitoring, and mitigating risks through the rigorous IRM process. It's also important to note that while the organization is addressing its principal risks, demand for affordable housing remains strong. CH will continue to have challenges meeting the expected continued growth in demand for affordable and deeply affordable housing. We are acting on shareholder direction to increase housing supply, but continued investment and efficacy to other governments to continue and expand investments in affordable housing is still critical to address the growing need. Now I'm pleased to pass it on to Bo, our interim CEO, to speak on our growth strategy milestones. Next slide, please.", "segments_merged": 33 }, { "speaker": "SPEAKER_19", "start": 1283.405, "end": 1382.405, "text": "Thank you, Adam. We are proud to share some significant milestones in our development and acquisition program this year as part of our newly approved strategic priority for. We are currently advancing 880 affordable housing homes across eight projects at various stages of delivery. Mount Pleasant, the picture on your left, is Calgary Housing's first redevelopment project on behalf of the city of Calgary, bringing 16 new affordable housing homes to the community. Located on a former parking lot and built on city owned land, showcasing Calgary Housing's growing capabilities in delivering new affordable housing in the city. Construction progressed according to plan and was kicked off last year, remains on schedule and within budget with a planned opening later this month. In 2025, Calgary Housing also negotiated an acquisition of the Midfield Heights property, which will be built by Rohe Homes over the next two years. The agreement was signed in Q4 of 2025 and finalized in Q1 of 2026, and construction began in Q2 of this year. Other active developments project include the Southview Phase 1 project, which has started construction, and an official groundbreaking event will be occurring in two weeks. The Birchland Tower Retrofit has been completed, the interior demolitions in early 2025, and we're currently in the active permitting stage with planned construction in Q3 of this year. And finally, Mara Loop, the feasibility work has commenced in late 2025. Design and permitting are expected to occur in Q3 of this year, with construction expected in Q2 of next year. These are all advancements that we've grown very well proud of in the last 2025. And now I'll pass it back to Anna to speak on the potential impacts of housing stability to make residents' lives.", "segments_merged": 9 }, { "speaker": "SPEAKER_10", "start": 1383.845, "end": 1471.505, "text": "Thanks, Paul. At Calgary Housing, we understand that a home is more than a place to live. It's the foundations for dignity and stability. Earlier I noted that 95% of residents were stably housed in 2025. Stable housing is the goal. In many instances, stable housing leads to opportunity. This slide is important as it highlights where this opportunity can take people. Kaylee, a Metis woman from Manitoba, came to Calgary facing unstable housing, incomplete education, and personal challenges. She left a domestic violence relationship and was raising her two young children when she accessed Calgary Housing. Kaylee had the opportunity to build a better life for her young family now that she was in secure, safe, and affordable housing. This provided Kaylee the opportunity to focus on her educational goals. She completed high school and pursued post-secondary education as a health care in a in the healthcare aid program at Bow Valley College. In Kaylee's words, if I didn't have support from the Metis organization and Calgary Housing, I wouldn't have been able to go back to school. Now employed full time, Kaylee has transformed her life for her family. She can now see her next career goal of becoming a nurse. That concludes our presentation. Our recommendation again is the audit committee receives this report and presentation for corporate record, keeps attachment six and the closed meeting discussions confidential. And we're now ready for questions. Thank you.", "segments_merged": 12 }, { "speaker": "SPEAKER_11", "start": 1473.505, "end": 1482.645, "text": "Thank you. Oh wait, see if anyone has questions. Councillor Panthilopoulos.", "segments_merged": 2 }, { "speaker": "SPEAKER_20", "start": 1483.425, "end": 1517.525, "text": "Thanks so much for the presentation and the background. Maybe I'll just start at at a higher level. Um Calgary's goal, 3,000 non-market homes. Our uh administration presented last week, I think we're at 56, and it's a consistent underperformance. Maybe just speak from a Calgary housing perspective. What do we need to change? What are some best practices? You know, if we really want to get that goal to 3,000, sounds like there's the need. You know, what are some things you're observing as one of our arms executing on that strategy? What do we need to amend and to get close to that target? Because you know, 56 out of 3,000 is a failing grade.", "segments_merged": 1 }, { "speaker": "SPEAKER_07", "start": 1518.005, "end": 1519.345, "text": "Mm. What's like that's the", "segments_merged": 2 }, { "speaker": "SPEAKER_19", "start": 1520.865, "end": 1604.025, "text": "Yeah, happy to answer that. So the Calgary Housing is very much a player on a large team for the delivery of non-market housing in the city of Calgary. And the the goal of the 3,000 units per year, I think, is a very appropriate and ambitious goal and should be as best as possible to try to meet it. For us, in terms of what things can help us to deliver and scale even greater, is the portfolio funding approach rather than a project-by-project approval basis that has given us the flexibility to be able to deliver quicker, higher quality, and be able to leverage more programs from other levels of government on a more expeditious basis. That way, the flexibility allows for us to be able to scale at a much significant level. I would say, in terms of the scale, Calgary Housing took over the development functions for uh the affordable housing aspect for um Really in the last two years. So in the last two years we scaled from zero to eight hundred and eighty. And I think we can grow even further if we have the ability to have secured, uh understood funding uh for the longer term so that we can prepare and plan. We have uh a pretty ambitious 10 year plan as well as our part of our strategic priority, and that allows us to pre plan a lot of our assets and allows our portfolio approach to be scaled up and planned for in the long term so that we can essentially scale to the 4,500 target in the next 10 years.", "segments_merged": 2 }, { "speaker": "SPEAKER_20", "start": 1605.065, "end": 1659.765, "text": "Maybe y just picking up on that pivot sort of two years ago and and I just heard from the strategic plan last year, you added that fourth item uh about um uh you know, expanding and building. And just m maybe scope creep Only in the sense of you operate a wonderful uh business, it's it's cash flow positive, it's it's it's great. And then two years ago now we're pivoting into the big leagues of building, of being a developer. And maybe just talk about that decision, the skill set, uh, you know, the dangers, you know, and your risk, it didn't sort of jump up, it actually didn't show up to say, hey, we're now pivoting, we're now entering millions of dollars, potential mortgages, etc. Maybe just speak to that why the board got comfort, didn't include it into the risk matrix, see that we did a huge pivot two years ago, but it sort of was quite moot on the uh the risk profile. Why do you think we can adapt and become a developer and get those 4,000 units, not just through the traditional acquisition versus uh the growth that you're planning?", "segments_merged": 2 }, { "speaker": "SPEAKER_10", "start": 1661.625, "end": 1775.585, "text": "You know, from a bo a board perspective, it did it did raise to a risk profile when um we did that pivot. Um we look at the operations of the organization and the fully sustainable uh mixed income model. Every every facility and building that we build is self-sustaining. And there's a a mix of uh grant uh funding and debt funding. And I think uh we've we've talked quite a bit um over the last uh few months, especially around uh you can't take a building and expect to have a high level of debt and have a low level of rent. So our mixed income model allows us to have rents at different levels that can support some debt but still needs capital funding. And to Adam's point earlier at the end of his presentation, we do we do require uh non-debt funding and investments in these projects. And when we have the right mix, then the facilities are sustainable, and that was a huge risk mitigator for from the board's perspective on uh building the buildings and operating them. The other risk that we identified was just do we have the um in-house expertise to do that? And uh it it evolved into that build-by-partner uh strategy that we're working on, where when it makes sense, we'll build it, when it makes sense, we'll buy it, and when it makes sense, we'll partner. And so Rowhit is a great example of that uh strategy where it made very good sense to partner and have another organization build that uh for us. And so as we look at all those different levels of risk mitigation, uh the board's quite comfortable, and in fact, I would argue the board would like to see more development. And uh and and Bo and team do a great job in kind of keeping us balanced and realistic on uh on what uh what we what we should be doing.", "segments_merged": 1 }, { "speaker": "SPEAKER_20", "start": 1776.325, "end": 1812.985, "text": "Thanks, the thanks so much for that. I think you mentioned the presentations. I think 31% funded of sort of the long-term ongoing maintenance. And you know, the city has our challenges as well. I think it was 31%. Maybe talk through is there a plan to get to 100? Is that even a realistic goal? And then that 70, 69% missing, you know, what risks is that? Is is it? Yeah, if you just speak to that. Ever get to the 100 and and being short. Uh how that's impacting your operations and subsequent audit committee reports.", "segments_merged": 4 }, { "speaker": "SPEAKER_19", "start": 1815.325, "end": 1817.505, "text": "Jan, I can kickstart and I can add to.", "segments_merged": 1 }, { "speaker": "SPEAKER_07", "start": 1818.165, "end": 1913.745, "text": "Yeah. We um implemented our reserve strategy back in 2022, and so um our um ability to save and um contribute to those reserves um is now more focused um into those um reserves um and 31 percent was achieved in a short amount of time. Um in terms of the uh longer term uh we have a 10-year um uh target to uh achieve that that plan to to get to 100 percent. Of course, we have to recognize that we not only will be contributing to uh those reserves, but there will be drawdowns. There will be times when we need that funding for life cycle maintenance, for uh the equity portion of uh uh projects uh going forward. And um so there will be some fluctuations. Uh however, the target remains uh for uh the 10 years uh to to reach that target and uh uh with an uh uh adapting along the the way with those uh needed drawdowns and replenishment of the reserve to the level that uh um we we need. And we have also uh Minimum reserve for life cycle maintenance that protects the properties to always have the minimum required for life cycle maintenance uh going forward uh for the long term.", "segments_merged": 2 }, { "speaker": "SPEAKER_19", "start": 1914.825, "end": 1990.105, "text": "I think the other aspect I'll add with reserve is that our reserve policy or our reserves is on a portfolio basis. So it's over a multitude of uh buildings and assets. And uh through our preventative maintenance and ongoing just proper asset management practices for our assets, the probability of the larger portion of the assets failing all at once is low. And as such, it's the the intent of the reserve is to you know really to meet that uh financial obligation should Sometimes emergencies, sometimes unforeseen circumstances, sometimes planned or occur. And with the aspect of being in portfolio and the large size of that reserve, we're able to respond to the needs. So in terms of risk mitigation, I think we're well placed in terms of even at 30% to be able to manage our risks. That being said, the assets are aging. I think the comment is you know, 50 years is the average life. That's the average life. Some of our buildings are you know moving up to 60, uh almost near 70 years. So with that, obviously, investments needs. And our part of our asset management strategy is really to take a look is it worthwhile to continue to invest in that? Or is that um you know, reaching end of economic service life? It might be time to redevelop, densify, and refresh that asset from a different perspective. So those are part of our internal asset management strategies, and that those help us make the decisions to best use that reserve.", "segments_merged": 2 }, { "speaker": "SPEAKER_20", "start": 1990.365, "end": 2041.905, "text": "Perfect. Thanks so much for sharing that story about Kaylee and it speaks to you know the real asset or the people and that that that sort of transition, you know, somebody enters and then hopefully you know exits. With that in mind, on uh attachment one, it it speaks to the average tenure is 3,100 days, so it's kind of 10 years. And and I'm just trying to, you know, it maybe to speak to that goal. That was surprising. You you know, if the goal is to help Calgarians get on their feet, if you will, enter, but a 10 year cycle, that's on average, that means there's people there 20 years and and folks like Kayla that just came in. So maybe just speak to that is I i is that accep acceptable's not the right word. Is is that the target? Is that the goal? Do you wanna is is the purpose to sort of transition people out to I mean not home ownership, but at least more of a sustainable versus a continued sort of subsidized rent lifestyle. I was surprised. Thirty one hundred seems like a big number, but I'm new to this, so", "segments_merged": 3 }, { "speaker": "SPEAKER_19", "start": 2042.085, "end": 2141.025, "text": "No, that's a that's a great question. And for us, really, our position is not necessary to transition people out. And if they do transition, it's a it's a great news story in the if they're moving on to home ownership or market housing. But for us, it's just creating that stability of housing so that the individuals can thrive in their own way. Um I I uh oftentimes have arguments with our communications team on the average stay because there are folks that live with us that will live with us for the rest of their lives. They just will not move out because of their circumstance, life circumstances. And there are other folks that literally just need us for a year to catch their breath, to have a moment of stability so that they know what they're expecting on the rents market, so they can catch their uh their their you know next wave of to be able to move on. So the the delta between you know the average versus the low and the high is extremely uh large. And but for us, really, it's we want to provide safe, affordable, quality housing, and people can choose to use that space uh as their reprieve for however long they wish they to be. Obviously, if they uh have the financial means to be able to move on, we have conversations with them, we encourage folks. Uh a lot of times uh people need to be told, I think the metric is seven times to say, hey, you you can qualify for market housing, you can qualify for a mortgage, you can qualify for a partner for, for example, with Habitat Humanity. And uh it's giving them that confidence that, yeah, you you do have that capability and reminding them that you that this is a viable path for you before they actually take action. So those are you know part of our partnership programs that we work with. Um So it's the the average is perhaps misleading in some ways. Yeah.", "segments_merged": 2 }, { "speaker": "SPEAKER_20", "start": 2141.125, "end": 2151.845, "text": "Okay, maybe in subsequent that would be understand that because that again it jumped up. Yeah. Just maybe two more questions. Um I think your your conversation was, you know, cost effectively grow and and through development, and", "segments_merged": 1 }, { "speaker": "SPEAKER_19", "start": 2144.785, "end": 2144.905, "text": "Yeah.", "segments_merged": 1 }, { "speaker": "SPEAKER_20", "start": 2152.005, "end": 2187.185, "text": "the average cost per door across the active development process was four hundred and thirty two thousand. I just Googled the average purchase price of a condo in Calgary is three hundred thousand. So I'm just thinking strategically, everybody loves a shiny new building. Um why wouldn't we pivot that $10 million, $100 million? You can now up tick three hundred, you know, thirty-three percent. Maybe just talk through that strategy logic. And that was just me simply Googling and and you have better intel being real estate professionals. Just just talk through that the reconciliation of very strong financial goals, objectives against um thirty-three percent above what you could buy in my neighborhood or anywhere in Calgary.", "segments_merged": 2 }, { "speaker": "SPEAKER_19", "start": 2187.825, "end": 2259.785, "text": "Absolutely happy to speak to that. The The the way that we've really structured, and I think Anna touched on this in terms of our strategic priority four is to build by partner. So we'll take whatever opportunities there are. And we the rowhead example comes up in terms of acquisition. Those are, you know, the the prices 300, just less than $350,000 per unit on the on the on that project. The other side of it is our our build form is usually on a site that we already own. So on an asset that's reaching the economic service life. So our choices are either to invest in something that may not last as well, not the best use of money, or to densify and rebuild. And though anytime you're densifying on an existing site and rebuilding on that site, the costs are more. Because also we're a public body and needing to follow the public sector procurement requirements, those aspects automatically just increase the cost premiums for the work that we do. So it is a balancing act, absolutely. If there's opportunities for us to deploy that capital elsewhere when we're not at a point where the asset is uh reaching the economic service life, that's where we'll deploy the capital. And it's essentially making the opportunity for us to deploy the capital in the most effective way wherever possible.", "segments_merged": 2 }, { "speaker": "SPEAKER_20", "start": 2260.425, "end": 2314.665, "text": "Perfect. I'll be certainly watching sort of build through there. And then just finally, um, on your risk matrice, the one that jumped up to me was um of all the risks, it said uh CH owned and managed assets risk falling below minimum health and housing standards due to inefficient uh funding to maintain aging properties. And that that concerned me. Is your employees have a city of Calgary logo? It's represents city of Calgary. I know there's provincial assets and and that that minimum health standards, you know, we're the city of Calgary. Maybe talk through that. Is there buildings? Are we at that stage? How close are we to that? I think that's unacceptable to Calgaryans to have humans living in uh, you know, minimum. I can't imagine what I see in my children's room and you know that metric. So just just speak to that. That really jumped up to me, and it obviously on your radar. How many buildings, what are we talking about, quantify, and how are you going to address that? And what's the province and the city need to do that we don't fall through because we can't be evicting people because there's standards.", "segments_merged": 3 }, { "speaker": "SPEAKER_19", "start": 2315.205, "end": 2413.525, "text": "I I'm I always say I'm very pleased to say that uh for the city and CH owned assets where Calgary Housing is the asset manager, that is a very low risk. It's a risk that we constantly monitor just because it is something of concern given the age of our assets, but that is not a uh a realized risk, it's not an issue. Um the numbers uh 80% of our properties are in good and very good conditions, well above the minimum health and safety standards. There are properties that we are deliberately um running to the end of the economic service life because we have an asset management plan for development of that site. Um, and it's very purposeful. The provincial assets, uh, as you'll note, as um Adam mentioned that it's actually decreased from our critical risk this year because of the investment, not only by the province in our in meeting our uh ask for the operating dollars, but also utilizing some of our existing asset management strategies on that portfolio. So I want to clarify, we are the property manager for the provincial portfolios, whereas we're the asset manager for city and CH. So asset decisions and such uh for the provincial portfolios is on the province. So we make the recommendation, they decide whether they're going to do it or not. Um, and in that sense, the province has um stepped up in the last couple years to meet our obligations for, to meet our requests for our operating dollars. And with those, we're able to manage a lot of the risk. So, as such, the the risk has decreased uh from 2024 to 2025 because of that. So we're not at that point, but is always constantly on our radar just because of the assets and their age. Um, the opportunity for one pipe leak that on a large multi story building it can shift that tide very quickly. Um, so this is something we're constantly watching as a risk.", "segments_merged": 1 }, { "speaker": "SPEAKER_20", "start": 2413.685, "end": 2436.925, "text": "Perfect. And and finally, thank you so much for hosting me and my team to go through visit some of your uh uh projects in ward and out of ward as well. I learned a lot. Uh I learned met a lot of your team and you can see the commitment and passion they have for helping host Calgarians, and that was uh wonderful. It's always good when you know you can privately pull them aside and ask them a question or two, and they echoed uh their strength and commitment. So thank you so much and to your team and for hosting us as well. Thank you.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 2436.925, "end": 2439.905, "text": "Our pleasure, thank you. Thank you. Thank you. Hope we can remember Kim.", "segments_merged": 3 }, { "speaker": "SPEAKER_08", "start": 2440.845, "end": 2462.805, "text": "Great. Thank you for your presentation and for the good work that your organization does. I'm just building off those questions. The average tenure of like roughly 10 years, you must have quite a wait list then that accumulates through that time. How do you manage that? And do you like is the average tenure an outcome or is that something that you're actively trying to manage as well?", "segments_merged": 2 }, { "speaker": "SPEAKER_19", "start": 2464.625, "end": 2537.385, "text": "It's I would say it's a um two-sided uh approach. So for us uh every time um Perhaps back up. The need is immense and we're not meeting the need. We can triple our supply, and I think we would still very much be in need. The current wait list that's uh folks have often referenced based on the provincial portfolio, um, it's a prioritization list. It's based on the highest needs individuals get access to housing first. That list uh as the end of April, it's just under 8,000 families. Um and we manage 2,700 homes on behalf of the province that would pull from that wait list. So, as you say, like I can triple my my volume of homes and I still wouldn't meet the current demand that's there. That being said, uh, we are as part of our strategic priority four to increase affordable, like increase housing uh and supply. And uh through our mixed income approach, we have the the spectrum of housing, and those all are trying to meet as much of the affordability needs of Calvary as possible. Uh so we want to grow, we want to try to meet that need as we can. Um And that that is our one of our strategic priorities.", "segments_merged": 4 }, { "speaker": "SPEAKER_08", "start": 2539.545, "end": 2558.445, "text": "Great, thanks. And now um shifting more to the governance side of things. When I was looking at the board skills matrix and I looked at remaining terms of particularly directors that are non-counselors, I saw some zero and one-year terms. How do you manage that board continuity and refreshment process?", "segments_merged": 2 }, { "speaker": "SPEAKER_10", "start": 2560.465, "end": 2660.865, "text": "Great question. The zero term, I'm one of them, is my term of three years is expiring this year, and then we renew for another three years. So that'll be done at the AGM. Two directors are renewing their terms, and then everyone is nominated and approved for three-year terms and three terms of three years. So upwards of nine years. An individual could be a director. We do uh when there's vacancies, we do a formal recruitment process. I believe MNP was our recruiting consultant this year. And we had um, it's a bragging point actually, we had a fantastic um turnout. We had 300 over 300 identified candidates. We had three open positions, and that went down through a series of um trying to get down to the three, which we have done, and we'll be bringing three uh additional board members onto the team uh at the AGM in two weeks. Or next is that next week, next week. And uh and then we do uh we do succession planning uh where and we go through the skills matrix annually and look at where people are in their terms and uh all the different skill sets that we need. And where there's a gap that informs the recruitment process. The team did an excellent job uh developing a new profile for board roles this year, really talked about uh the complexity of the organization, the development um increase in development, and uh and the commitment of the role. And even with that, we were we were really pleased with the interest that Calgary Housing has from the from the community in being part of the organization.", "segments_merged": 1 }, { "speaker": "SPEAKER_08", "start": 2662.985, "end": 2679.045, "text": "That's a great response. Happy to hear it. Speaking of the audit and risk committee, could you speak to the financial expertise of the members on that committee? Do you have any CPAs on it? How do you staff up for the financial expertise there?", "segments_merged": 2 }, { "speaker": "SPEAKER_17", "start": 2684.125, "end": 2716.285, "text": "That's a good question, and something we're uh We're constantly mindful of. I have a law degree. I've been practicing corporate finance for over 20 years, financially literate. Have held several board positions. The previous audit chair was Anna, who's a CPA. We have uh at least one CPA on the committee at the moment. I'm sorry.", "segments_merged": 6 }, { "speaker": "SPEAKER_07", "start": 2717.665, "end": 2719.785, "text": "City representative on committee.", "segments_merged": 1 }, { "speaker": "SPEAKER_17", "start": 2719.785, "end": 2741.005, "text": "Yes, the city representative as a CPA. But yes, that is something we're mindful of. And one of the new recruits to the board we have um we have identified as a potential audit committee member and future audit committee chair because of his uh financial credentials.", "segments_merged": 1 }, { "speaker": "SPEAKER_08", "start": 2742.465, "end": 2750.225, "text": "Great, thank you. And my final question is with regards to the status of your search, your executive search for the permanent CEO.", "segments_merged": 1 }, { "speaker": "SPEAKER_10", "start": 2752.205, "end": 2772.465, "text": "Um we are we are putting together a process and again we'll we'll use a recruitment firm and uh a significant amount of work is planning to be done over uh Q3 and Q4 on that, and so that's uh in progress for sure. And we are very grateful for Bo to be doing such a great job while we we get that process underway.", "segments_merged": 3 }, { "speaker": "SPEAKER_08", "start": 2772.905, "end": 2776.965, "text": "Sounds like you're in good hands for the interim at least, um. Thank you very much. Those are my questions.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 2777.745, "end": 2779.025, "text": "Thank you. Councillor Jameson.", "segments_merged": 1 }, { "speaker": "SPEAKER_02", "start": 2782.005, "end": 2831.165, "text": "Morning. Uh Councillor Pandasophilos asked some of the line of questioning that I was going to, so I'll uh just uh change gears here a little bit. Um I like that you guys have a sustainable or self sustaining model. I wish more uh partners would would kind of go more toward that route. Uh but in that lens, um at what point does an organization I believe you guys have 87 million in cash? And uh uh that's page uh attachment two, page twenty, and sixty million in net assets, which is attachment one, page two. Uh need stop needing annual city subsidies, and what does the path toward total freedom look like?", "segments_merged": 5 }, { "speaker": "SPEAKER_10", "start": 2832.865, "end": 2834.345, "text": "Jana, do you want to take that?", "segments_merged": 1 }, { "speaker": "SPEAKER_02", "start": 2834.745, "end": 2853.905, "text": "Because that's a lot of money. Yeah. And uh so you guys are getting into a place where, you know, is the is the is the goal one day to uh not or be able to say as as like the first partner, we don't need um subsidies anymore. Is that is that the the the end goal and how do you get there?", "segments_merged": 2 }, { "speaker": "SPEAKER_07", "start": 2855.345, "end": 2940.885, "text": "Yeah, so uh currently we do not receive operating subsidies from the city of Calgary. Uh we do receive some infrastructure funding um uh for the city-owned portfolios and also for um the Calgary housing owned portfolios, um and that is a very critical uh investment into those portfolios to maintain them in uh good and very good condition over time. Um our cash um is uh a lot of it is restricted, uh I believe, out of the um 86 million, about 11 million is on unrestricted. We hold uh for an example uh resident deposits. Uh we hold um uh some cash reserves on behalf of other entities as well as uh us uh and uh the city as well and so uh we have some advances, cash advances, um and so the cash uh uh piece is uh some of it is externally restricted, some of it is um internally restricted. Um and um in terms of the assets overall, um Yes, our n especially our non financial assets have increased over time, uh and that is due to the significant investment we've been able to make in those assets over time and improve their condition.", "segments_merged": 3 }, { "speaker": "SPEAKER_19", "start": 2943.565, "end": 2994.085, "text": "So I perhaps add a little bit more to that with regards to the being fully self sustaining. Um the the goal for us is to have the lifecycle maintenance to be self sustaining as we're increasing our supply, as our changing our uh our um mixed income model to be able to generate the surpluses needed for the annual um. Capital maintenance aspect, but for capital renewal, so major renewals of assets as well as a new development. As mentioned, like there's no way for us to do it without some kind of grant funding. Because if we're uh aiming to have a low average rent for the properties, we cannot have debt associated with it. It's just a part of our operating uh system that it's just numbers. You can't uh have debt and to a significant amount of debt and to charge low rates. Um there there has to be some kind of subsidy. Subsidized housing requires subsidies.", "segments_merged": 2 }, { "speaker": "SPEAKER_02", "start": 2995.065, "end": 3003.925, "text": "You guys I believe have a eight point six million dollar surplus, is that correct? Correct can that go to offset the subsidies or or what what what's your plans for that?", "segments_merged": 1 }, { "speaker": "SPEAKER_19", "start": 3004.485, "end": 3029.025, "text": "So for us it's really uh our our focus is the um putting that money into the reserve. So as as mentioned, we've only have th met 31% of our capital reserve target. So we're continuing to invest in that and creating our our surpluses to to meet that demand in of um input on an annual basis. Once we it you know reach that 100%, that's a whole different conversation in terms of what we can do with that additional surplus for sure.", "segments_merged": 1 }, { "speaker": "SPEAKER_02", "start": 3030.745, "end": 3058.865, "text": "I know that um you guys manage and and you know thank you for the tour uh that we went on, uh quite a large provincial portfolio also. Um This one I I wasn't able to ask a lot of questions then about that. Um what I'm specifically wondering is what financial due diligence process does this Calgary housing go through before accepting a transfer from the province?", "segments_merged": 4 }, { "speaker": "SPEAKER_19", "start": 3059.425, "end": 3132.185, "text": "Yeah, that's a fantastic question. So for us, we do the the first and foremost was we do uh building condition assessments. So these are third-party engineering assessments of the entire building to make sure the the core building system's structural and mechanical envelope uh is uh understanding the condition. So if it's in terrible, terrible condition, it's not something we want to take on. If it's in good condition that needs us a little bit of investment, that's part of the negotiations for the uh capital funding that comes with that asset transfer. The other side of it is as you mentioned, our our teams have been operating these buildings for decades. So our understanding of how that system actually, how that building actually operates is uh a very core component of our evaluation criteria. And through the the experience of our plumbers or mechanical maintenance workers or building maintenance workers, we're able to get a very good sense of what that property is capable of handling or how long the economic service life is, even without doing the engineering study. Uh so with all those components of information, we make an assessment. And if it's a value proposition where the uh cash that's going to come with the asset transfer from the province is more than what we anticipate the cost to be, we make the recommendation to the board for that asset transfer. If it's less, uh, we politely say thank you, uh, but no thanks.", "segments_merged": 1 }, { "speaker": "SPEAKER_02", "start": 3132.485, "end": 3134.765, "text": "Okay, so we are able to say no.", "segments_merged": 1 }, { "speaker": "SPEAKER_19", "start": 3135.125, "end": 3135.485, "text": "Yes.", "segments_merged": 1 }, { "speaker": "SPEAKER_02", "start": 3135.485, "end": 3138.105, "text": "You know, if if it's a bad deal for the city, we can say no.", "segments_merged": 1 }, { "speaker": "SPEAKER_19", "start": 3138.105, "end": 3138.705, "text": "Absolutely.", "segments_merged": 1 }, { "speaker": "SPEAKER_02", "start": 3138.825, "end": 3161.845, "text": "Yeah, because that's I I'm just wondering if if that was the cr if the criteria is really to accept the best assets, or you know, do you guys have the um uh I guess goal to just simply grow your portfolio numbers as many as you can, you know, with potentially really bad assets. Um, you know, and how that actually works with that relationship with the province.", "segments_merged": 2 }, { "speaker": "SPEAKER_19", "start": 3161.865, "end": 3196.825, "text": "I would say there are opportunities where we would consider a quote unquote bad asset, especially if it's the land value and opportunity for us to redevelop that site in the near term. So that's one opportunity where we can leverage two sources of funding from the province. One being the the capital renewal funding that comes with an asset transfer. And the second is with regards to the affordable housing partnerships program for new developments. So we can leverage both together to be able to Take a an asset that's literally reached its end of economic service life and be able to redevelop that on a short, short uh duration basis so that we can get uh new housing built.", "segments_merged": 2 }, { "speaker": "SPEAKER_02", "start": 3197.245, "end": 3219.205, "text": "Yeah, I think that's a a good path and and I I know in the future we're gonna talk more about that, but the the redevelopment path and the the private public partnerships, you know, is seems to be there's just a a lot of uh potential, you know, and I hope hopefully we can, you know, have more meetings and talk more about what what that could look like. Happy to. Yeah. Thank you for your time.", "segments_merged": 2 }, { "speaker": "SPEAKER_11", "start": 3222.105, "end": 3222.925, "text": "Councillor Kirk.", "segments_merged": 1 }, { "speaker": "SPEAKER_18", "start": 3223.745, "end": 3260.525, "text": "Thank you, Chair. Good morning, everyone. I mean, the wonderful thing about going after a number of speakers is some of these questions have been touched on, but I might approach them slightly differently. So in the report and through the conversation today, you spoke a bit about the balance between the classic acquisitions model and this new development strategy. You highlighted the landscape. It has changed for traditional asset acquisition. Can you speak a little bit to the transition of development and is this to would you say the offset sort of those changes that have occurred in your traditional model, or is it really just a growth strategy?", "segments_merged": 3 }, { "speaker": "SPEAKER_19", "start": 3265.165, "end": 3325.325, "text": "For our growth strategy, really, it's we kept it open enough that we wanted to take the opportunities that come to us that made the most sense. So that we had the flexibility to really leverage the funding that's available, the um you know, taxpayer dollars, value for money. How do we get the best value for money? Um A lot of our acquisition opportunities in these partnerships types is really at a declining market opportunity. So when the market is not hot, it's not booming, and developers are looking for an alternative path to their traditional, you know, build and sell or build and hold, that's when we can come in and say, hey, we would love to take that asset and utilize it for affordable housing. If the market is booming and people are able to get, you know, 30, 40, 50% return on their investments, I I think the opportunities for them to come to us to sell it at a discount will be very low. So we have to have still retain our core expertise to be able to build at those times as well, because we want to continue to increase the housing supply.", "segments_merged": 3 }, { "speaker": "SPEAKER_18", "start": 3325.765, "end": 3359.085, "text": "Yeah, great. Um during your questions with Councillor Pandasophilos, you highlighted that um some individuals will live their lives at Calgary Housing. And um I think that's very exciting and interesting. Um can you speak to the management of like that? I mean, obviously as an individual ages in place, their needs uh increase, and so how Calgary Housing will manage that as a mitigation, as part of your mitigation strategy. I mean, you know, inevitably anybody I won't go into the details, but you can imagine a senior there's instances there where certain risks emerge. Yeah.", "segments_merged": 3 }, { "speaker": "SPEAKER_19", "start": 3359.085, "end": 3440.285, "text": "Yes. So uh we we're actually very proud of our um well I'm very proud of our customer experience teams in terms of how they approach the the services we provide to our residents, especially the aging residents. Uh Kyrie Housing is an independent living um company that those are the residents we serve. Uh so long as they're not in need of uh additional healthcare services and such, they're more than welcome to stay with us. We also have uh programs in partnerships with the province, the the RAMP program is one, as well as our own asset management teams are able to make um modifications to a unit if if someone wants to stay in the unit that better meets their physical needs. Um changing of you know toilet sizes and heights, uh, walk-in showers versus a tub. Those are the opportunities we're able to make uh on-site for those individuals. Uh there are other circumstances where, for example, uh an individual ages in place, but their family has moved on to other other opportunities and they're no longer needing a three-bedroom house. Those ones we were able to move folks around to either a different location to their liking or to uh a unit that's more self contained that has the accessibility needs already built in. A lot of our new developments, because we get funding from the province, requires that 10% of the units are adaptable. So those are perfect perfect units for uh some of our seniors who need a mobility challenge, and they can go into a unit that's already built in place for that challenge.", "segments_merged": 1 }, { "speaker": "SPEAKER_18", "start": 3440.705, "end": 3474.025, "text": "Great. Um sort of within the same line of questioning, um you'd highlighted also in your conver in your uh in your presentation that you've got a number of partnerships. So as somebody finds their feet financially and can move out of traditional Calgary Housing, you can find access points for them elsewhere. But you're also moving to a mixed uh mixed income model. And so I just wondered if there's an opportunity or if you see an opportunity to uh sort of transition these individuals to like market rates, but to remain with Calgary Housing. That's something you've uh are sort of alluding to.", "segments_merged": 3 }, { "speaker": "SPEAKER_19", "start": 3474.805, "end": 3528.945, "text": "It's uh so for us we we love the to be able to say that 100% of our units are non-market. So as such, even our near market is uh 10% below the the average rents of the of the community and that that they're in. Um for us to move to market rents, I think it's uh um a shift perhaps in in philosophy. And uh we'd be happy to explore that if you know it it made financial sense at the time. But right now, because of the our ability to uh Make the model work with 100% non-market. We don't see a need to play in that space, nor compete with uh market rentals uh in that. It's also a high risk. So if you're competing on the market side uh on a downturn, there's opportunities for uh greater vacancy numbers and as such uh lower rent, uh bigger bigger risk for us. So for us to be able to continue to say that we are a non market housing provider, 100%. Um I think it's a that's a pride point for us as an organization.", "segments_merged": 2 }, { "speaker": "SPEAKER_18", "start": 3529.105, "end": 3540.965, "text": "That's amazing. That's great. Um you've highlighted reputational risk uh in your top concerns in this report. Can you speak a bit about your strategy to realign uh the organization in the current social and corporate landscape?", "segments_merged": 1 }, { "speaker": "SPEAKER_19", "start": 3543.925, "end": 3549.185, "text": "Sorry, just perhaps clarify in terms of the mixed income model or", "segments_merged": 1 }, { "speaker": "SPEAKER_18", "start": 3549.185, "end": 3561.565, "text": "I'm sorry, moving on to sort of you've highlighted reputational risk to Calgary Housing as one of your major concerns. And so just wanting to speak a little bit about how you intend to realign the organization to mitigate that risk.", "segments_merged": 1 }, { "speaker": "SPEAKER_19", "start": 3562.625, "end": 3602.125, "text": "I would perhaps say there's not a realignment because I think we are uh mitigating that risk um in in how we approach our business. So the when we say reputational risk, it really comes down to the quality of the assets, um, making sure that they're uh at a minimum meeting the minimum of health and safety, but beyond that. Also how we treat our residents in terms of equity, making sure that they are not um disproportionate or in one way or the other discriminated against. These are existing internal policies that we have from our customer experience team as well as our assets teams to make sure that we are hitting that benchmark so that we are um not in a position where we would need to face that reputational risk.", "segments_merged": 3 }, { "speaker": "SPEAKER_18", "start": 3602.185, "end": 3634.925, "text": "I'll just sort of clarify perhaps with um page eight of attachment for risk statement, confidence and trust in CH's ability to pursue and achieve its organizational mission and vision. Um effectively manage the organization, general misunderstanding, or lack of awareness related to housing programs, financials, human resources, and incident responses. So more on the social side, I guess, of rather than the assets themselves. I'm just trying to uh highlight this as and and give you the opportunity to speak to how you're approaching that work.", "segments_merged": 1 }, { "speaker": "SPEAKER_19", "start": 3636.085, "end": 3638.625, "text": "Yeah. Sir which risk was that?", "segments_merged": 2 }, { "speaker": "SPEAKER_18", "start": 3639.185, "end": 3640.205, "text": "Uh number six.", "segments_merged": 1 }, { "speaker": "SPEAKER_19", "start": 3640.205, "end": 3640.725, "text": "Six.", "segments_merged": 1 }, { "speaker": "SPEAKER_18", "start": 3642.885, "end": 3655.325, "text": "Likelihood, possible impact significant. Negative media, public or government relations could result in decline in public respect and support.", "segments_merged": 2 }, { "speaker": "SPEAKER_19", "start": 3657.245, "end": 3692.665, "text": "So for us, it's all about bringing clarity in terms of the programs that we man manage, the program that we administer, and the programs that we are able to sustain. So for us, it's about bringing that clarity publicly to the folks that so that they have a clear understanding of what exactly we're able to offer and what things we cannot offer in in many circumstances. There are changes to legislation that we cannot modify because the province has mandated a specific requirement. We're following that. But able to communicate that need or that pathway for the residents is really where a lot of our work is happening right now.", "segments_merged": 1 }, { "speaker": "SPEAKER_18", "start": 3693.585, "end": 3696.385, "text": "Okay, thank you, sir. Um oh pardon.", "segments_merged": 2 }, { "speaker": "SPEAKER_17", "start": 3696.385, "end": 3755.585, "text": "May I just add? Uh yeah, I I think communication's the key. Uh we think uh We think Calgary Housing is doing a fantastic job. And sometimes we're not very good at communicating that Calgary Housing is doing a fantastic job or why it's doing a fantastic job. And I've really enjoyed our recent um um our recent um I was gonna call it a school trip, but but our Our thoughts with council members, getting to know council members personally, uh visiting um the homes that we operate and manage. Uh I think we should be doing more of that. And we'd encourage council members to maybe attend our board meetings as guests, uh, take tours with us. We'd be more than happy to host.", "segments_merged": 5 }, { "speaker": "SPEAKER_18", "start": 3756.185, "end": 3791.265, "text": "That's a wonderful thing. That's a wonderful addition. Thank you for adding that. My final question really is around the provincial government and that relationship. You guys have a Cowgri Housing is a long-standing, decades-old, and unique relationship, integrated, sort of mixed relationship with the province. So I just wanted wondered if you could speak a little bit to how that relationship has evolved. I know that it relates you manage a lot of property on behalf of the province. And I just wondered if you could talk a little bit about how you how what it looks like, what the current landscape of that looks like, and how you'll be moving forward over the course of the next few years with that.", "segments_merged": 1 }, { "speaker": "SPEAKER_19", "start": 3792.045, "end": 3879.185, "text": "Yeah, so the provincial assets, as as I mentioned earlier, we're the property managers. So we do have recommendations for how we should manage the assets or how to take care of the assets from an asset management perspective. But the province makes those decisions. I think we've improved our relationship with the province, uh, whether it's administration or politically, pretty significantly over the last, I would say, five years in terms of bringing their assets to a condition uh that's um not as high risk as previously uh were. Are they in good condition? I I would say not not quite the target that we would like to have as as comparable with the city and CH assets. Um but they have stepped up in terms of their funding for our operating dollars to be able to meet the demand that it it the assets require. On the capital side, um as a as a benchmark, we we did not receive as much as we were requesting. But it's also uh a testament to the province's strategy in terms of the stronger foundation strategy for the affordable housing sector, is that they want to get away from the asset ownership and they want to move towards the regulator and funder. So it is a strategy that's um their strategy, and we're helping as best we can to mitigate the impacts to the residents while they implement that strategy. So, in terms of the next uh few years for us, it's really again continue to advocate that for that funding, uh, continue appropriate funding for both operating and capital, and where possible to be able to leverage the opportunities we talk about in terms of assets reaching the end of active economic service life and be able to redevelop and densify and bring new uh new life to that site.", "segments_merged": 2 }, { "speaker": "SPEAKER_18", "start": 3879.345, "end": 3905.865, "text": "Great, thank you. I'll just close by saying that um I'm a board member actually of Calgary Housing, not today um in this capacity, but um it's been incredible to participate in a wholly owned that is not only Calgary's like it's you're the oldest wholly owned subsidiary, but you folks are driving forward uh an amazing amount of work and what you've been able to achieve over the course of the last 10 years has been incredible. Uh really impressive work. So thank you.", "segments_merged": 3 }, { "speaker": "SPEAKER_11", "start": 3906.485, "end": 3909.305, "text": "Thank you. Thank you. Public member Knacker?", "segments_merged": 2 }, { "speaker": "SPEAKER_06", "start": 3910.885, "end": 3973.005, "text": "Uh thank you, Chairperson. Firstly, thank you for the report and also just to um echo what my colleagues have said that you know this is really important work that you're doing because uh once a person has a uh you know has a home, everything else um uh uh really assists to fall in place. So just a couple of follow up questions um from my side. Um I guess the one is around the reputation, and I don't want to uh spend too much of time there. But just wanting to know from a you know from a sort of uh triggers that you may see happening during 2026, uh is there um, you know, has the Calgary Housing sort of tested its, you know, crisis communication, um, its uh incident response process? Uh and I say this uh also because I sit on other boards from a social aspect. And while we never want to see these things happen, they do happen. So just wanting to know uh if that plan is in place and it's been tested.", "segments_merged": 9 }, { "speaker": "SPEAKER_19", "start": 3975.265, "end": 4033.965, "text": "Yeah, so from a crisis communication perspective, for us really is that focus on uh potential asset failure. I think that is really the the highest risk for us in terms of uh crisis management. We have a very robust emergency response plan as part of our asset management requirements of our of our uh assets. And for us, we uh are on a continual basis on site. So for us to be able to see the the problems that may occur uh on a on a Expedited basis is probably one of our greatest assets. We have not only our property managers, we have our site managers, plumbers, mechanical maintenance workers, folks that go on site on a fairly regular basis to assess the risks. And for us, it's uh ensuring that our uh emergency management plans are in place and are uh updated as as regular as possible. So for us it's a a fairly routine process in that. And uh thankfully we have not had any uh major critical instances uh in 2025, and as such, we're um we're more of planning rather than implementation.", "segments_merged": 3 }, { "speaker": "SPEAKER_06", "start": 4035.645, "end": 4055.785, "text": "Okay. And sorry, maybe just a follow-up. So more from a social sort of perspective, yes, the infrastructure lends itself to that social uh sort of um uh you know issue or incident. But on that front as well, I just want to gain a sense if there's a uh plan in place that has been tested.", "segments_merged": 4 }, { "speaker": "SPEAKER_19", "start": 4058.305, "end": 4065.945, "text": "Perhaps uh if if you can clarify what um what specifically or what are some examples you can think of from the social perspective?", "segments_merged": 2 }, { "speaker": "SPEAKER_06", "start": 4066.545, "end": 4103.585, "text": "Sure. So from a social perspective, uh, you know, if uh something actually happens to the infrastructure. Or somebody raises some concerns around the allocation of housings, and then it obviously has some sort of impact from a social perspective. So how is that managed? Yes, I understand there's a process internally, but when the process fails, for want of a better phrase, fails and it's uh you know, then um uh has an impact. How does uh Calgary Housing deal with that? Is there a plan in place? And has that plan been tested?", "segments_merged": 8 }, { "speaker": "SPEAKER_19", "start": 4104.785, "end": 4167.065, "text": "So in terms of uh programs and how folks are brought in uh to the systems, uh we follow uh legislative requirements and we are auditing that process on a fairly regular basis. We have just completed our our audit uh last year in terms of our existing systems, and if there are any deficiency, we're able to fix those on a uh again very expedited basis. The the communications to um to folks is having clear communication not only on our website but also on our postings. So for our um near market as well as affordable homes, those are posted on uh rent faster. So the the clarity of how one gets into the program is uh very explicitly spelled out. There's no ambiguity. So in terms of uh circumstances, and I I'm I'm trying to rack my brain in terms of uh instances where that has occurred where there has been a misallocation, and I can't think of anything at this moment uh of housing to folks. Um it will be very much an immediate evaluation of how we uh how we evaluated uh their application uh before entering to the housing program with Calgary Housing.", "segments_merged": 1 }, { "speaker": "SPEAKER_06", "start": 4167.925, "end": 4196.545, "text": "Sure. And thank you so much for that comment. And maybe just a um a value add or a suggestion that while uh something hasn't happened, it's just important to always have you know a crisis communication plan, an incident response plan, just proactively thinking about that and and formulating that and testing that should something happen. So I'm just putting that out there as uh you know uh um uh just a value add uh. That's something that you may want to consider.", "segments_merged": 2 }, { "speaker": "SPEAKER_05", "start": 4197.205, "end": 4197.405, "text": "Appreciate it.", "segments_merged": 1 }, { "speaker": "SPEAKER_06", "start": 4198.585, "end": 4235.765, "text": "Sure. Then the other question, and it's largely been covered, but I uh it and this is around the expired uh operating agreement, right? With the with the province. I just want to uh maybe gain a sense there. And as I said, it's been covered in the other questions. Um, but I want to understand you know, what uncertainty uh does this create? So is it you know around uh you know asset funding, uh uh maintenance or or or What exactly is that uncertainty now that that agreement has expired?", "segments_merged": 4 }, { "speaker": "SPEAKER_19", "start": 4237.745, "end": 4283.085, "text": "So with regards to the operating agreement with the province specifically, it it is uh very much the the the funding of the of the assets and our operations to to manage them on the on the province's behalf. Um the again I I want to um perhaps just make the distinction that for the provincial properties we are the property managers. So in the circumstances, if the funding doesn't come through, there's uh there's uh the ability for Calgary Housing essentially to hand that back to the to the province should that occur. That has not occurred, they have provided the necessary funding on a continuum basis. So it's a risk that we're monitoring. Uh but I think in terms of the actual uh activities that the province has done, they have not um moved away from the from the actual operating agreement.", "segments_merged": 3 }, { "speaker": "SPEAKER_06", "start": 4284.525, "end": 4326.165, "text": "Okay, got you. All right. And maybe just one more question. And uh it's it's more around the the technology and and and cyber risk, right? So as I understand, that risk is um Or not that area, I would say, Calgary Housing leans into the city systems, right? So maybe if you can give me a sense of how does the board actually obtain that assurance that, you know, around the cyber, the privacy, the disaster recovery, how is that being uh sort of uh actively tested and managed between the city and Calgary Housing?", "segments_merged": 5 }, { "speaker": "SPEAKER_10", "start": 4330.145, "end": 4390.025, "text": "You know, that that's a great question. We we do rely on the processes and policies in place with regards to the city system. Um, but it has come up at recent uh at recent board conversations around what are those um how are those policies monitored and what kind of reporting should the board receive to ensure that uh the risks are mitigated and uh and basically that whoever is supposed to be maintaining all of that is in fact doing that, and if there is an issue that it's being communicated to the board. That's just one of many of city policies that Calgary Housing does share with the city and follows the city approach. So we are we are looking at having very uh distinctive reporting done on that in the future. It's sort of been more informal in the past, um, recognizing that uh there's a a great tie in with with the city's policies and those professionals that manage that area.", "segments_merged": 1 }, { "speaker": "SPEAKER_05", "start": 4391.745, "end": 4394.185, "text": "Uh thank you so much for that feedback. Thank you, Chair.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 4396.025, "end": 4425.005, "text": "Thank you. Uh and I'll just sort of pick it up where you left off. On IT, so is there no practices within your organization that are not directed by the city? Because this is where we're seeing a breakdown. So you're still an organization that is has IT obligations, let's say, and policies. Are you just waiting for city to tell you or do you actually maintain good internet hygiene? I'm gonna say yes we do and I'm gonna let Bo tell you all about it.", "segments_merged": 11 }, { "speaker": "SPEAKER_19", "start": 4425.805, "end": 4477.925, "text": "Yeah, so there there's a a split perhaps a split in the system is that our core IT system is through the City of Calgary. All um CH employees are City of Calgary employees and we're seconded to the organization. So all of our IT access, IT requirements, IT policy adherence is based on the City of Calgary's IT systems. That being said, we do have our own IT systems for our enterprise system, the YARDI system, which is how we track our financials as well as track our residents interactions. Those are separated, but for that implementation, we uh similarly follow city policies for you know the privacy impact assessment, threat assessments before implementing that process. So it is a hybrid approach in terms of how we approach the cybersecurity, but we try to lean on the city's best practices because I do believe the city has a very robust system in place for their IT setup, and we try to mirror it as best as possible.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 4478.065, "end": 4502.165, "text": "Great. So now I'm gonna wanna go into that system you operate. So does that system hold how many uh people are occupying a suite? So when you do how frequently do you audit for change of family structure? So if you have a three bedroom rented to uh a mother and kid and and they've been there long enough for the kids to go off to university, do you re sh re move them around so that you're not having a three bedroom unit going to a single person?", "segments_merged": 3 }, { "speaker": "SPEAKER_19", "start": 4502.525, "end": 4531.525, "text": "Yeah, so we do um the the check-in uh with our residents on an annual basis. That's how our our reference checks. Um and if it's uh the opportunity for under house or over house individuals for them to be able to move to another unit, um we we work with them to be able to move them. Sometimes the the community is is such that there isn't another available unit. So we don't want to displace someone artificially just because they've changed their family composition. But uh if if there's opportunity in terms of availability, we absolutely uh help people move to the appropriate housing.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 4531.585, "end": 4556.125, "text": "Okay, and that's an an interesting answer because in the past I've had answers where we've had families with children in school and they've been forced to move to other segments of the city. So or uh and and so s so how do you balance that? When I think we would prioritize kids just moving suites and staying within your your business model, uh but moving them to from the northwest to the southwest is not good for students. And I've heard of stories of that. Like", "segments_merged": 2 }, { "speaker": "SPEAKER_19", "start": 4556.245, "end": 4605.865, "text": "Yeah, I agree. That's that's not good practice. I think it depends on the specific circumstance. So for families that we move, uh, if there is a movement, we usually work with them on the communities that they would like to move to. It's not where um we any available uh units that we just move them. It is at their um at their option. Unless the the asset is uh being uh Reaching the economic service life and we're no longer operating that building. So Bridge Line Towers would have been a prime example where we're no longer operating that building. We're vacating it to redevelop it. And as such, we need to move you to another location. And the only available unit may be somewhere in a different quadrant of the city for the family size that you have. So those are unfortunate circumstances, but in those circumstances, we prioritize keeping them housed rather than having to them to move to an area where they can be precariously housed.", "segments_merged": 3 }, { "speaker": "SPEAKER_11", "start": 4606.025, "end": 4631.005, "text": "Yeah, it it it's not always working out that way. So that that's where it ends up in Councillor's inbox. Um another question I have is for your ri risk. So you mentioned the board wanted to be more of a developer. uh rather than an operator at times or that pressure to develop over operations. How are you balancing that that risk? Because you also are risking your finances with development in today's markets.", "segments_merged": 3 }, { "speaker": "SPEAKER_10", "start": 4632.165, "end": 4677.785, "text": "Um I wouldn't say the board wants to be more of a developer than an operator. I would suggest both. Um and one doesn't um currently are are operating uh Performance is uh is very good and we monitor that to make sure it stays that way. How we set up our new developments is each building and facility is standalone. So we don't leverage existing operations to support new operations at this time. And so each one stands on its own, and so we monitor all of those financial components to make sure that there's no threat to existing operations. And again, it's why having less debt and more investment in those properties allows us to do a better job at that. Yeah.", "segments_merged": 3 }, { "speaker": "SPEAKER_11", "start": 4678.005, "end": 4699.005, "text": "Awesome. And then that takes me to the comment earlier about uh using to the end of life uh like extracting 100% of the value of the asset. Um Do you not see a risk in that when that also impacts your reputation of complaints about the suites not being to a standard that that they would challenge the certification on health and safety?", "segments_merged": 3 }, { "speaker": "SPEAKER_19", "start": 4699.805, "end": 4738.945, "text": "Yeah, so we would uh always respond to any um requests that things are not meeting the minimum health and safety standards. That's the absolutely uh a top priority for our asset management teams. And regardless of uh a building reaching the end of economic service life, we would never sacrifice the minimum health and safety standards of the units. So in those circumstances, absolutely just literally call us, we will go out and and fix it. Um that's not uh never a a criteria for for us to be able to run a building, run a building to the ground per se. It's more of to get to the point where it is uh viable for us to move residents to a different location and vacate the building at all at once as a as a quick uh vacation.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 4739.125, "end": 4761.925, "text": "Okay. And then over the years we've talked about your maintenance team and how they actually respond to fixing it. Uh you were gonna c can you describe what changes you have made since past audit presentations on how you are actually maintaining suites and the qualifications of the individuals doing it? It was a lot of cont contracting out rather than having in-house expertise as a model, and where are you at today with that?", "segments_merged": 1 }, { "speaker": "SPEAKER_19", "start": 4762.545, "end": 4826.825, "text": "Yeah, so for us it is still a blended approach just because we don't want to have the insourcing of all the expertise in-house and then not be able to respond quickly to uh various fluctuations in the vacancies. So we still have insourcing in of individuals that work for Calgary Housing that's part of our you know core maintenance teams, the the plumbers, electricians, mechanical maintenance workers, as well as building maintenance workers. But we also have recurring contracts with uh reputable contractors that are evaluated through a public procurement process for recurring contracts that does some of the work. So it is a balancing act in that uh sense. We work to find the again the best value for money in terms of what makes sense for specific units that require substantial renovations. We usually contract out because it's easier for a single contractor to go and procure that that responsibility for the unit. Uh for more routine maintenance move outs, uh, so you know, some uh we need to fix some electrical plugs, we need to replace the toilets, those are internalized for our uh our existing staff to be able to do that. And again, it's a matter of uh trying to find the best value for money for the those user turnarounds.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 4827.265, "end": 4843.665, "text": "Great. Councillor Clark mentioned about counselors being guests, but I don't think we're really seeing your schedule of when your meetings are occurring as counselors that are not on the board. So if that is an option, is there a way to share with counsel when your meetings actually are? Because we're flying blind.", "segments_merged": 1 }, { "speaker": "SPEAKER_17", "start": 4844.385, "end": 4851.565, "text": "Yeah, absolutely. We schedule those meetings months and months in advance. We'd be happy to share that schedule with you.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 4851.685, "end": 4855.185, "text": "Awesome, great. And that's my questions for today. I'll hand it over to public member McDonald.", "segments_merged": 1 }, { "speaker": "SPEAKER_21", "start": 4856.005, "end": 4909.945, "text": "Thank you very much. Um I'm relatively new to this, so my question's probably um a newbie question, but that's okay. I'll ask it anyways. It's mostly from my understanding. Um and it points a little bit to I think uh whether it's a push or pull model when it comes to how you price things. So when I when I see a number, you know, 37% below market, is that is there are there targets within your portfolio that you're trying to hit in terms of affordability, or is it more sort of supply driven in terms of you've got a mixed housing opportunity and because of the grant and the debt structure you can charge only 15% under and how do you sort of make those decisions and balance that with how much you need to actually charge to make enough to fill your reserves. So I'm just trying to get a sense of of how that structure works and how that strategically impacts some of your operating decisions.", "segments_merged": 4 }, { "speaker": "SPEAKER_19", "start": 4910.245, "end": 4971.505, "text": "Yeah, the short answer is yes, all of the above. It really depends on the property. As Anna mentioned, we try as best as we can to make the individual buildings, especially new builds, to be self-sufficient on their own. And with those, it is very dependent on the amount of grant funding that we have. The operating requirements from, for example, the provincial grant funding has specific operating requirements on the number of units and the percentage, it has to be below in order to meet the affordability targets. So for those, that's the minimums, and we try to exceed those wherever possible by uh trying to find additional leverage or low and low-cost loans to be able to make those work. For existing assets that have been fully paid off, for example, and we're in a community that uh is in dire need of affordable housing, we price it based on the uh the affordability of the of the area. And then there are the other areas where it is um less so, so we price it uh more as competit competition with the market. So it's very, very uh area building property specific, and we have uh a team that's uh we call it the portfolio real estate management team that uh takes care of that.", "segments_merged": 1 }, { "speaker": "SPEAKER_21", "start": 4971.605, "end": 4979.685, "text": "Okay so they they sort of balance that that critical need that you guys fill versus the the you know ability to actually offer a certain level of discount.", "segments_merged": 1 }, { "speaker": "SPEAKER_19", "start": 4979.685, "end": 4980.005, "text": "Okay.", "segments_merged": 1 }, { "speaker": "SPEAKER_21", "start": 4980.005, "end": 4981.085, "text": "No, I appreciate that. Thank you.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 4990.285, "end": 5012.105, "text": "Okay, I'm not seeing it. No? Okay. All right. Uh with that, uh, can I ask Councillor Clark to move the item? Alright. Yeah. Alright. Uh Eastcribe to vote, please. Eastcribe still thinking today.", "segments_merged": 6 }, { "speaker": "SPEAKER_03", "start": 5023.305, "end": 5024.865, "text": "Public Member Niker, your vote, please.", "segments_merged": 1 }, { "speaker": "SPEAKER_05", "start": 5029.285, "end": 5029.785, "text": "Yes.", "segments_merged": 1 }, { "speaker": "SPEAKER_03", "start": 5031.265, "end": 5032.585, "text": "Thank you. Chair, all the votes are in.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 5033.125, "end": 5108.285, "text": "Please display the vote. Motion is carried 70. Thank you for coming down to City Hall and to visit Audit. This takes us to our next item, 7.3, South Fish Creek Recreation Association 2025 Annual Report. Come on down. Alright. When you're ready, you may begin your presentation.", "segments_merged": 6 }, { "speaker": "SPEAKER_15", "start": 5115.505, "end": 5840.405, "text": "Morning members of the audit committee. Thank you for the opportunity to present today. We're here as excitement. We're here to share our passion for the community and the facility itself. My name is Craig McGeechee. I'm the general manager of Cardell Rec, Southfish Creek. The naming is Cardell Wreck. Joining me is Shirley Fries. She's our controller, and Lynn Joby is our president. Before I took the job, didn't this facility is much more than four sheets of ice. We're going to try to show you what we do in South Fish Creek and just express that it's more than just four sheets of ice today. Today we're going to provide an overview of some governance framework, our financial stewardship, our sorry, you can change the slide. But financial stewardship, some legislative compliance, and how we impact the surrounding communities and partnering supported organizations. We will be sharing these elements, work together to support the responsibility management of long term sustainability, an important asset in South Calgary. Please change the slide. I'll be beginning with providing an overview of the Southfish Creek's governance framework. I'll talk to some photos that you see throughout the presentation. That is a uh annual skate with Santa that it has escalated from one sheet of ice to two and three sheets of ice. So it's a free opportunity for the local community to come here and Santa does show up. So please change the slide. Our governance structure reflects the collaboration and nature of the organization by bringing together community and support representatives with independent director at large. The balanced model ensures diversity but representation. Strategic decision making, maintain a strong accountability and oversight, and direct connection with the community we serve. Please change the slide. As you can see, you know, effective governance depends on clear separation between strategic oversight and operation management. The direction is provided by the board with oversight, supported by its committees, while management is responsible for implementing the direction and overseeing the day to day operations and the capital plan of the organization. These divisions ensure strong accountability, support effective decision making, and allow both board and management to focus on the prospective responsibilities by working toward a long term success of the organization. Please change the slide. Together those four pillars that you see, what enables us to inform decision making, strengthen organizational o oversight, and align with city expectations for the responsible management of the important public ac asset. Please change the slide. I'll now turn to this but self-suring financial position and strategies to support the long-term financial. That's another picture. We're very strong at our staff culture. That was an internal session we did with an instructor from Mount Royal. That those three sessions that we did has paid dividends with our staff to show the support. Please supply or please change the slide. As you can see, our financial results reflect a prudent financial management and the diversity but operating model. Our broad mix of revenue sources strengthened long term. But financial stability, resilient revenue model, and provides a flexibility to support future operation and capital priorities. Most importantly, the association received an unqualified audit opinion with no significant deficiencies identified, providing independent assurance of all financial reporting and governance practices. Please change the slide. A strong balance sheet provides the flexibility to respond to future capital requirements while adopting to evolve operating needs. Maintaining appropriate reserves allows us to plan proactively, support long-term financial stability, and responsibly stewardship for the important public access asset. Please change the slide. As you can see, we have to find other resources. Our financial strength is it is diverse of revenue streams. Beyond our core operations, we actively pursue external funding opportunities and strategic partnerships that support capital investment, generate additional revenues, and strengthen our financial flexibility. This diverse approach strengthens our long-term financial stability and enhances our ability to reinvest in our community. And again, that's another slide there of uh Istrosurfacer. That was oh. Um we did get a grant for this, uh but Istrosurfacer, if um our chairing committee does not understand, those are almost $200,000 pieces of machinery. So those are expensive. Next slide, please. Capital planning is a key priority and essential part of ensuring long-term stability of the facility. Instead of reacting, we take a proactive approach. We follow a structured life cycle but replacement strategy and discipline preventative maintenance program that helps extend the life of our assets, improve operational reliability, and reduce long term replacement costs. As you can see, the projects highlight and reflect an ongoing commitment to responsible asset management and long term sustainability. This year we have a bill and condition report being scheduled. So our last one was 2022. We have another one coming up this year. So that's a four-year mark. Please slide. Risk management. The next session focused on an approach and enterprise risk management and legislative compliance. Another photo there. We work very closely with the City Calgary Police, the community liaison officers, and they frequently host their coffees with police in our facilities, and that's one of our rooms there. So that was a couple months ago, and it was well attended. Please, next slide. Enterprise risk management is enables but throughout an organization and supports proactive decision making across all levels of the organization from day-to-day operations through board oversight. By taking the structure approach of risk, we can anticipate challenges, prioritize mitigation strategies, and make information decisions that support the long term sustainability of the organization. Ultimately, the proactive approach enhances organizational resiliency and helps protect both association and city investment. You'll notice in your package of 3.1, there's some information about the risk assessment areas that we've gone through the organization. Next uh slide, please. Supporting our enterprise risk management framework is a formal legislative compliance program that helps us ensure we meet all our regulatory obligations and adapt to legislative change. Rather than simply react to new requirements, we proactively monitor and assess legislative developments and strengthen internal controls, reducing compliance risk, and reinforces our commitment to accountability and a good governance. Also to note in your package 3.2, there is information about this. In the picture, another picture there is we we partnered with uh a group called Annex, and youth designed that artwork, and now it does reside in the Commons area of Southfish Creek. Please change slide. Finally, I'd like to highlight how strong governance and our financial stewardship translates into measurable community impact and public value. Please, next slide. As you can see there, while ICE rentals remain an important source of revenue, our financial model is supported by a broad mix of programs, facility rentals, tenant leases, grants, partnership, and other but funding sources. This diverse revenue base strengthens financial resilience, maximizes facility utilization, and supports our ability to deliver a wide range of recreation and community services to the residents of South Calgary. Next slide, please. As you can see from our our impact, we provide opportunity well beyond operating a record facility, a force use device I've but I've mentioned. We provide programs and services that support the residents at every stage of their life. While working with community and social partners, we are reducing barriers and enabling partnership and create opportunity for people to connect and belong. This broad community focus reflects our community, enhancing health well being and social inclusion across Calgary. One example there, that's the campfire program that has been we're going into our third year. 200 youth attend on a monthly basis. We host six to eight a year, depending on the weather. And um yes, that's a physical campfire. People sometimes don't get to experience a physical campfire, and that's out back, and that's a partnership with all of our partners that uh participate, which is the Calgary Library, the YMCA, and the Catholic School Board, and us. Um this date came from a local um one of our communities did did um offered this program and then we brought it over to us. And I think Lynn Joby was our president, started this program in her community and brought it over to us, so we appreciate that. Next slide, please. The utilization level showed that that this slide reflects the strong demand for our programs facilities and our commitment to maximize the value of the important asset. Through efficiency scheduling, expanding program opportunities, and strategic partnerships such as Calgary or Tours in Calgary will continue to but increase and attract major events. And we've also just recently won. Uh the 2027 28 National Regette Championships, and that's in partnership with the seven chiefs. So we both collaborated together and they needed a six sheet of ice. I sell our facilities equal to six sheets with seven chiefs. So we won that event mainly on we were able to sell six sheets of ice in two different locations. So that was a good collaboration with Kyrie Tours on that. Um and one thing that I'm most proud of there, if you look up there, non-prime ice scheduled between mid-August to April is 93%. That is unheard of in even Western Canada. I've been in a rink since 1990. One of the key successes is we have 13 plus 55 teams play there, and there are there's a couple teams over 80 there. So um, and that's a 12 that we host about 12,000 hours of ice per year. Next slide, please. The impact of Southfish Creek extends beyond the operations, as I've mentioned, through accessibility programming, computers. But community partnerships and exclusive paces. We help strengthen the community connection, promote healthy lifestyles, and support an overall well-being for all the residents of South Calgary. The outcomes align closely with the City of Calgary strategic priorities and demonstrate the broader public value created. Regional management, an important community asset. I've said that a few times. In closing, South Hist Creek is committed to the responsibility of being a steward of the of the city's asset and delivering meaningful value to our communities. Together, the principles ensure a long term sustainability of organizations while protecting the investment and maximizing the benefits. As we have presented, this is a vital part of the community of Selfish Creek. As I mentioned, I've been in the arenas since 1990. I started in the city of Calgary in 1990, and to this day I'm very proud of this facility. I've been around to many arrangements in Western Canada and North America, and we continue to get compliments of our facility, what we offer, how clean it is, and the change that we are seeing. So thank you. Any questions?", "segments_merged": 72 }, { "speaker": "SPEAKER_11", "start": 5841.685, "end": 5844.025, "text": "Another fun part. Uh Councillor Panzadopoulos.", "segments_merged": 1 }, { "speaker": "SPEAKER_20", "start": 5844.825, "end": 5876.145, "text": "Thank you so much for the presentation. Uh game plan. Last council approved it. I think this council hopefully will double down and and make major investments and a core part of that is partners and and investing not just city owned assets, well maybe city owned assets, but working and maybe just you know help audit committee and the rest of council Learnings, you know, what mistakes were made in that having partners fund it? What can we learn as we go into game plan? Because we're gonna make a pretty substantial investment and just love to hear uh if you could do it again. Uh we have that chance, uh, what works and what doesn't.", "segments_merged": 2 }, { "speaker": "SPEAKER_15", "start": 5876.405, "end": 5978.585, "text": "Wow, that's a good one off the start. Um Yeah, game plan I've been involved with a little bit. You know, I'm invited to meetings. Um what I'm hearing through the city of Calgary and out of partnerships, we have a strong partnership with with all the Selfish Creek partners of the YMCA, the Calgary Library, the school on us. We've been told that we're kind of the image of what um a regional recs need to be. Um we have a strong partnership with all of us. What can we learn from it? Wow. Um What we're finding now is the cost of running facilities is who would have thought of this twenty-five years ago that utilities would be close to eight hundred thousand dollars? Just for us, not the Southfish Creek as a whole. So the understanding of the scope and the cost and the burden that is now going to be presented to the users, that's where this is going. And I got a I got a stat here. From 2020 to today, our partner ice rental went from 203, now we're at 290 per hour. That's almost a 30% increase in less than five years. And that directly goes to the users. So our rates are not the highest in the Calgary, but in terms of recreation facilities, to answer your question a little bit, is it's getting to be expensive to run these things. And we are, I've dropped 9,000 hours in operating since 2019. We're at the sweet spot of ours. We have adjusted as most or as much as we can in terms of operating cost. I think we've kept our salary and wages very comparable for five years ago now. So we've dropped a lot. So the operating of these facilities are very expensive. And that's", "segments_merged": 5 }, { "speaker": "SPEAKER_13", "start": 5979.405, "end": 5990.465, "text": "I'll I'll just add to that that we're in a bit of a squeeze position. Um there are there are some facilities in the city that have an opportunity to raise a lot of revenue. Oh sorry.", "segments_merged": 1 }, { "speaker": "SPEAKER_15", "start": 5990.585, "end": 5991.145, "text": "I got it.", "segments_merged": 1 }, { "speaker": "SPEAKER_13", "start": 5992.605, "end": 6075.345, "text": "Um okay, so we're we're in a bit of a squeeze because there are some facilities in the city that have the opportunity to raise a lot of revenue through membership. We're not that kind of facility. We have four sheets of ice, we have a large gym space and a lot of meeting rooms. We don't have a membership fee. And um so we're very sensitive that as Craig mentioned, our our rental fees for our spaces are creeping up, up, up. It's it's tough for families. We recognize that. We're trying to be innovative about uh subsidizing um um families to to afford programs and whatnot, but it is a concern. And um uh you may or may not know this, we do receive zero Zero dollars from the city. So as our facility ages, we're over well over 20 years now, and we're looking forward to some super significant uh investments coming up with uh a roof and by 2036 we'll be doing brine lines and and concrete pads. We're talking millions and millions of dollars. It's uh it's a lot. And so how do we do all that and still keep our fees low so that families can? Bring their kids to learn how to play hockey.", "segments_merged": 6 }, { "speaker": "SPEAKER_20", "start": 6076.585, "end": 6096.965, "text": "Is it the diversification of the income stream? I think you showed that slide, 55% rental. How critical has that been your journey over the 20 years? Uh did did it start out at 90% and it sort of moved? I know there's grants and things, but just how how again, as we're planning the next four sheets of ice in a new community, you need to make sure there's room for the 45%.", "segments_merged": 2 }, { "speaker": "SPEAKER_15", "start": 6097.005, "end": 6186.025, "text": "So it's a very important question. Um we get a lot of tours from we just had a tour from Chesterbear. Is there potentially I'm gonna have a tour of Carrier Flames coming by uh next week. ICE itself does not make you viable. You gotta have commercial, you gotta have programs, you gotta have meeting spaces, you gotta be creative. We are potentially signing two two new more um leases coming up in the next few weeks. One is a classroom setting for a hockey program. They're gonna have classes there. So they want to adapt a five to ten year plan to host classes there and sport. So um being creative. Um these facilities cannot be viable just with four sheets of ice. And we have commercials and and so in development of facilities, I'd be very careful of um being so but very diverse. Um we host three to four religious groups per week, faith groups, um, church groups, um uh but Ramadan, there's a group that shows up every year, and and we have to adapt for Ramadan, we store their stuff, and and there's certain things we got to do for them. And so we have a lot of religious, you know, you know, faith groups that walk through there, at least three to four. And they're constant users of it. It's quite enjoyable on Sundays when you're there they play some good music. It it's really neat. And it's it's very neat to walk by the the hallway and you got your your Triple A hockey and the buffs and then you got this faith group down the hallway playing the music. So it's At being very diverse in your facilities.", "segments_merged": 4 }, { "speaker": "SPEAKER_20", "start": 6186.345, "end": 6190.425, "text": "I appreciate it as a hockey dad. I think I've helped your tenants with Mr. Pretzel uh you know", "segments_merged": 1 }, { "speaker": "SPEAKER_15", "start": 6190.425, "end": 6191.125, "text": "I I bet you", "segments_merged": 1 }, { "speaker": "SPEAKER_20", "start": 6191.125, "end": 6226.725, "text": "I've paid half their half their rent. Uh yeah, maybe that but partnership, uh, you know, when we go there, you've got uh a high school, um a YMCA, I believe, uh uh library and of course ice and and pub and all those stuff. So maybe just how how does that work? Um, you know, we're looking to build some of those and even in my ward, you know, that clos cross collaboration. How important was it to have the several anchor tenants? Does it yeah, it doesn't really work, or just just to begin an honest having the library just to the north, against to the rink, and just maybe walk through that as again context of game plan, but also as we look to cross pollinate uh city services.", "segments_merged": 1 }, { "speaker": "SPEAKER_15", "start": 6227.165, "end": 6278.665, "text": "If you ever get to that stage, I'd be glad to be involved in that process. But for us, that space that you stand in in the hallways that you walk from A to B, that's called the common space. It's the Alliance. It's the Alliance is the Catholic School Board, the YMCA, the public library, and us. We sit on this, we manage that space. When that building was designed, it was a collaborative effort to make it a user-friendly for everybody. If you come through our facility in the arena in the daytime, multiple high school students hanging out there, studying, using our Wi-Fi. When I first started in 2020, it was a little, but it is very nice to see them there. 99.9 to the percent, they're there to study, they're to hang. They just want to get away from school and they don't want to walk outside in minus 30. So it's it's a very good partnership. I would suggest this model to be done very similar with a few tweaks in it.", "segments_merged": 2 }, { "speaker": "SPEAKER_13", "start": 6279.185, "end": 6283.125, "text": "They the commons also uh manage the uh outside envelope", "segments_merged": 1 }, { "speaker": "SPEAKER_15", "start": 6283.305, "end": 6283.745, "text": "That's right.", "segments_merged": 1 }, { "speaker": "SPEAKER_13", "start": 6283.745, "end": 6284.025, "text": "of the", "segments_merged": 1 }, { "speaker": "SPEAKER_15", "start": 6284.025, "end": 6284.545, "text": "That's right.", "segments_merged": 1 }, { "speaker": "SPEAKER_13", "start": 6285.345, "end": 6286.765, "text": "of the buildings as well.", "segments_merged": 1 }, { "speaker": "SPEAKER_15", "start": 6287.285, "end": 6310.765, "text": "So each each each partner has a responsibility. So for example, this school has the the janitorial contract. We manage it day to day. The library has the the contract of the snow removal and the landscaping. The YMCA, because they're building maintenance, they do the day to day building maintenance and capital. We run the financial systems in that. So it's a it's a model that I would suggest.", "segments_merged": 1 }, { "speaker": "SPEAKER_20", "start": 6311.445, "end": 6322.045, "text": "Great. No, thanks so much for that clarity context and so important as we go into our four year budget cycle just to know and hear success stories. Yeah. And 'cause we also have to hear the bad ones, but know what works and what doesn't and then continue.", "segments_merged": 3 }, { "speaker": "SPEAKER_15", "start": 6322.045, "end": 6324.285, "text": "No, I think the city did a very good job on this this agreement.", "segments_merged": 1 }, { "speaker": "SPEAKER_20", "start": 6324.485, "end": 6325.385, "text": "Thank you, Madam Chair.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 6326.985, "end": 6328.565, "text": "Thank you. Public member Kim.", "segments_merged": 1 }, { "speaker": "SPEAKER_08", "start": 6329.245, "end": 6350.745, "text": "Great. Thank you for your report. Um a few questions. Um first, I noted that you have a term loan that's coming due February. Oh, that's been sorry, I might have had the wrong date. Yeah, February, that's all been repaid. through I presume your GIC and other funds on on hand?", "segments_merged": 5 }, { "speaker": "SPEAKER_16", "start": 6351.425, "end": 6353.825, "text": "Yeah, we actually", "segments_merged": 1 }, { "speaker": "SPEAKER_14", "start": 6354.865, "end": 6401.685, "text": "We still do have the term loan. I there was a strategic decision by the board a number of years ago to begin to reduce the the actual amount of the term loan to reduce the interest that we were incurring. And so a large sum of money went to pay it down significantly. But we were still required by the bank to have uh A collateral GIC on the side for the term. This year we had some discussions with the bank and convinced them to allow us to cash in the GIC and to to not have a collateral requirement and to pay down the loan further. And this has resulted in even more uh savings on our interest expenses.", "segments_merged": 3 }, { "speaker": "SPEAKER_08", "start": 6403.745, "end": 6422.905, "text": "Great, thank you. I noted your the bench restaurant and there have been some challenges with that operation in terms of the financial results. I can see that. So what are your plans perhaps to turn it around or what are your your plans to continue with this venture?", "segments_merged": 2 }, { "speaker": "SPEAKER_15", "start": 6423.925, "end": 6424.825, "text": "Go ahead.", "segments_merged": 1 }, { "speaker": "SPEAKER_13", "start": 6424.825, "end": 6499.885, "text": "Um there have been some challenges with the startup of of the bench, which is uh a full service restaurant um of over what how many seats? Over three hundred almost three hundred. Seats. So it's a it's a large space. Um before I answer your question, I'm just gonna say that it's been uh instrumental in bringing some of the major tournaments to our facility. Um we're able to offer that uh That amenity and bigger tournaments, bigger uh functions really look to that. So that's part of turning it around. In the last year, it has turned around. So even though the economy has been difficult and other restaurants and businesses of all kinds have met challenges, we're actually our revenues are increasing there. We've really made a turnaround, and we expect that with continued diligence and strong management it will continue to build. It was originally set up with the vision of it being a social enterprise to give back to the facility and to support specifically youth programming. We hope that eventually it will get to that point.", "segments_merged": 5 }, { "speaker": "SPEAKER_08", "start": 6502.345, "end": 6529.585, "text": "Great, thank you. And uh I I guess uh just with the with us being the audit committee, we need to think about financials and particularly internal controls. So when I think about an organization of this size, uh my concern would go to segregation of duties, misappropriation of assets, cash, things like that. So can you provide us an overview of your internal controls on how you manage the segregation of duties and the cash?", "segments_merged": 4 }, { "speaker": "SPEAKER_14", "start": 6530.185, "end": 6590.985, "text": "Absolutely. In fact, that's that is a challenge. I mean, we're a very small not-for-profit and our accounting team consists of three people. And so segregation can be quite a challenge. But you know, I've done a a very robust review of the internal controls that we have in place, and we've made a few adjustments here and there to ensure that there is the necessary segregation. And I think that Uh with the issuance, I mean in fact we've revised 15 different procedures and forms to ensure that those segregation and internal controls are embedded into our our day to day activities. And so I think with with all of these fundamental changes, I I would I'd like to say that we have a very strong internal control system now that really addresses any concerns that our auditors could could have.", "segments_merged": 5 }, { "speaker": "SPEAKER_08", "start": 6593.785, "end": 6595.345, "text": "Great, thank you. Those are my questions.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 6597.225, "end": 6620.705, "text": "Thank you. I'm just trying I'm turning mics off for you guys. Um I just have one question. You're in such a complicated joint use site. What what is the backup plan if one isn't actually financed? Is there a risk analysis on that? Like I know you got some strong partners, but not all of them are guaranteed to keep that as part of their operating model. Yeah.", "segments_merged": 6 }, { "speaker": "SPEAKER_14", "start": 6623.705, "end": 6693.625, "text": "I'd like to say that it seems I would hope on an if we were to do a heat map, I would hope that it would be highly unlikely that the school or the Calgary Public Library would would become financially distressed. Um with regards to the Y, clearly they're a very long long-standing, you know, sizable organization, probably much significantly bigger than SFCRA for sure. So I I'd say that that the likelihood of there being an issue there would be low. If, however, for some reason one of those organizations did decide to leave the the common enterprise, then I think clearly we would have to look for another partnership. Uh in the case of the Y, it could be also beneficial for SFCRA because then we would be able to seek those membership, ongoing membership uh revenues that could be generated from that space. So I think that there's some risks but also some some opportunities as well.", "segments_merged": 4 }, { "speaker": "SPEAKER_20", "start": 6693.725, "end": 6694.005, "text": "Yeah.", "segments_merged": 1 }, { "speaker": "SPEAKER_15", "start": 6694.305, "end": 6733.465, "text": "Just you know, um Lynn and I sit on the Alliance Committee, which meets quarterly, which is all the partners. We talk about hopefully not those things, but more of a higher level strategic items and I'm more of a secretary there. And then monthly, we meet with the operating committees of each um organization about day-to-day stuff that goes on there. So um I would hope that we're connected at the at those two levels to get that news before it hits. Um but even in the meetings with the YMCA recently, they said their membership is ballooned recently. So um they're very happy. They're actually going through a big renovation right now, and I'm sure that's a multi million dollar renovation there. So I would hope that we're gonna be great partners in the future.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 6733.585, "end": 6738.525, "text": "Yeah. No, it's just because like schools have shut down in the established area. So you have to always plan for that in the future.", "segments_merged": 1 }, { "speaker": "SPEAKER_15", "start": 6738.825, "end": 6739.105, "text": "Yeah.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 6739.145, "end": 6741.085, "text": "Enrollment's a fun one. Right.", "segments_merged": 1 }, { "speaker": "SPEAKER_15", "start": 6744.045, "end": 6744.385, "text": "Yeah.", "segments_merged": 1 }, { "speaker": "SPEAKER_13", "start": 6744.385, "end": 6746.265, "text": "And there's no chance of", "segments_merged": 2 }, { "speaker": "SPEAKER_11", "start": 6746.265, "end": 6747.805, "text": "You're suburban like mine.", "segments_merged": 1 }, { "speaker": "SPEAKER_13", "start": 6747.805, "end": 6748.705, "text": "Yeah.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 6748.705, "end": 6751.045, "text": "All good. Public member McDonald.", "segments_merged": 1 }, { "speaker": "SPEAKER_21", "start": 6752.145, "end": 6777.525, "text": "Uh thank you. Just a really quick question, um, just so I understand sort of the structure of the bench. Is that a wholly owned subsidiary? Is it um so it's so it is a wholly owned sub? Okay, because I was I was concerned the the old banker in me looks at the unsecured loan and says, Okay, so there's an unsecured loan to somebody else outside the organization, which could have been a risk. Okay. So I appreciate that clarification.", "segments_merged": 2 }, { "speaker": "SPEAKER_13", "start": 6777.585, "end": 6782.165, "text": "Yeah, and there's a remainder of three hundred and how much left of that loan?", "segments_merged": 2 }, { "speaker": "SPEAKER_14", "start": 6783.305, "end": 6794.165, "text": "Oh the that that would be our term loan that you're referring to. Yeah. And yeah. Yeah, the 2.5 is is what the bench owes to us.", "segments_merged": 2 }, { "speaker": "SPEAKER_13", "start": 6794.165, "end": 6794.985, "text": "Right. Okay. Sorry.", "segments_merged": 1 }, { "speaker": "SPEAKER_14", "start": 6799.805, "end": 6800.245, "text": "That's right.", "segments_merged": 1 }, { "speaker": "SPEAKER_21", "start": 6800.365, "end": 6805.785, "text": "Yeah. Quick question. Okay, no, I appreciate that it is a wholly owned sub, so there's there's contained risk there. Appreciate it.", "segments_merged": 2 }, { "speaker": "SPEAKER_14", "start": 6807.245, "end": 6856.965, "text": "And just as an as an added comment to that, the we recently did rewrite the term loan uh because we had there was a strategic decision to to ensure that the bench had stabilized. I mean it is in the hospitality industry, which takes a bit of time to kind of get its footing and and for people to start using the facility more. That has happened now, and so we are actually experiencing uh positive Ibida at this point. And so we're actually very pleased with how it's been progressing and hoping that the the the strategic intent of it becoming a social enterprise and and becoming a funding partner of SFCRA is is now turning around.", "segments_merged": 3 }, { "speaker": "SPEAKER_21", "start": 6857.165, "end": 6861.385, "text": "Okay, that's good. It's a good turning uh a risk into a good news story.", "segments_merged": 2 }, { "speaker": "SPEAKER_14", "start": 6861.385, "end": 6862.165, "text": "Yes, that's right.", "segments_merged": 1 }, { "speaker": "SPEAKER_21", "start": 6862.165, "end": 6862.725, "text": "Appreciate it.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 6863.545, "end": 6866.225, "text": "Great. Thank you. Councillor Jameson, would you like to move?", "segments_merged": 1 }, { "speaker": "SPEAKER_21", "start": 6866.445, "end": 6866.805, "text": "Yes.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 6866.885, "end": 6872.085, "text": "Awesome. Thank you. All right. Jameson will move and when clerks are ready, you scribe to vote.", "segments_merged": 3 }, { "speaker": "SPEAKER_03", "start": 6886.965, "end": 6888.425, "text": "Public Member Niker, your vote, please.", "segments_merged": 1 }, { "speaker": "SPEAKER_06", "start": 6890.045, "end": 6890.585, "text": "Yes.", "segments_merged": 1 }, { "speaker": "SPEAKER_03", "start": 6891.925, "end": 6893.865, "text": "Thank you. Chair, all the votes are in.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 6894.105, "end": 6903.045, "text": "Display the vote. Motion is carried unanimously, 7-0. Thank you very much for your presentation and great work with recreation. It's a challenging endeavor.", "segments_merged": 2 }, { "speaker": "SPEAKER_15", "start": 6903.465, "end": 6903.765, "text": "It's great.", "segments_merged": 1 }, { "speaker": "SPEAKER_01", "start": 6904.465, "end": 6904.825, "text": "Thank you.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 6920.865, "end": 6935.065, "text": "Thank you. And now can we please get Civic Partners? 2025 Civic Partner Audit Report. When you are ready, please begin.", "segments_merged": 4 }, { "speaker": "SPEAKER_12", "start": 6942.825, "end": 7129.665, "text": "Thank you. Good morning, and thank you for the opportunity to present the Civic Partner Audit Report. My name's Kim Mustard, and I'm the Acting Manager of the Major Partners Division and the Partnerships Business Unit. Joining me today to present is Kathy Sang, team lead in Major Partners. And in the gallery, we're also joined by Kay Choi, Director of Partnerships, GMKD Black, and staff from Major Partners, Community Partners, and Finance. Before the presentation, we're requesting clerks to redistribute two attachments Confidential Attachment 4 and 11. The revised attachments have non-material clerical changes. Next slide, please. The slide before you presents this report's recommendations. Next slide, please. The Civic Partner Audit Report presents the results of the city's annual financial review that rates the city's exposure to risk related to each civic partner. This report helps council and administration understand mitigation for those rated as elevated or high risk, and it helps monitor trends over time to inform funding and other decisions. Risk ratings for each civic partner are based on their audited financial statements from the most recent financial year end. The ratings in this report are based on 2025 audited financials. This report is part of a larger accountability framework that also includes a Civic Partner Annual Report presented to the Community Development Committee on May 21st. Together, these two reports provide a full overview of civic partner governance, operations, and financial health. The category of civic partners is defined in the Investing and Partnerships policy, and the city makes its most significant investments in these organizations. The policy encourages leading practices related to governance, risk management, and accountability. Next slide, please. Risk ratings for each civic partner are included in Confidential Attachment 4. The financial review process looks at clearly established criteria and ratios to evaluate cash on hand, working capital versus cash expenses, deficits, reserve levels, among other items. Through the process, organizations can be rated as low, elevated, or high. The same tool is used to review community associations and social recreation groups with a lease or license of occupation. Overall, based on 2025 audited financials, 23 civic partners were rated low risk. Three civic partners and two wholly owned subsidiaries of civic partners were rated elevated risk. And one civic partner and one wholly owned subsidiary of a civic partner were rated high risk. If the committee has specific questions about an organization's rating, we'd be happy to address them in camera, given the confidential nature of the information. As part of the process, administration works closely with partners rated as elevated and high risk to understand mitigation strategies and support as needed. I'll now like to pass the presentation to Kathy Sang, a team lead with major partners, who will provide a summary of the governance and risk management information in the report. Next slide, please.", "segments_merged": 34 }, { "speaker": "SPEAKER_04", "start": 7133.205, "end": 7241.545, "text": "Last year, Council approved a streamlined approach to reporting. Civic partners invited to present directly to audit committee within the given year no longer need to complete the Civic Partner Audit Report template for that specific year. In 2026, four civic partners will present to audit committee as part of the committee's work plan. These civic partners are still required to submit their audited financials for this report and have received a risk rating. As part of the accountability process for civic partners, each organization submits their information about their governance and risk management practices through a template. Administration then prepares a covering snapshot with key highlights. This information is included as confidential attachments to the report. In 2025, financial risk was still the most often reported by partners, just as it was in 2024. More partners also reported cybersecurity risk, and employee recruitment and retention remained the third most reported risk. Overall, partners continue to refine their approaches to risk management and continue to evolve and adapt more sophisticated tools that suit their organization's operations. They are also engaging all levels of their organizations in risk management with leadership coming from their boards. Over time, civic partners need to be flexible and adapt to changing financial conditions. For example, by continuing to diversify revenue streams and manage increasing risks related to technology. Next slide, please. This slide presents our report's recommendations. Thank you for the opportunity to present, and we are happy to answer any questions the committee may have or together with the team provide more information about specific risk ratings in CAMRA.", "segments_merged": 10 }, { "speaker": "SPEAKER_11", "start": 7254.885, "end": 7281.645, "text": "Does anyone have any questions? Civic partners. Okay. Those are confidential. Okay, I'll take them offline because they're confidential questions. And since no one else on committee has questions, we will know about that. It's tied more to that. Can I get a mover for this report, please? Councillor Cl Clerk. Great. And you scribe to vote.", "segments_merged": 10 }, { "speaker": "SPEAKER_03", "start": 7297.645, "end": 7299.125, "text": "Public Member Niker, your vote, please.", "segments_merged": 1 }, { "speaker": "SPEAKER_06", "start": 7299.645, "end": 7300.485, "text": "Yes, please.", "segments_merged": 1 }, { "speaker": "SPEAKER_03", "start": 7301.265, "end": 7303.045, "text": "Thank you. Chair, all the votes are in.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 7303.325, "end": 7310.105, "text": "Please suspend the vote. Motion is carried 7 0. Thank you very much for your presentation. Good lucky today.", "segments_merged": 3 }, { "speaker": "SPEAKER_16", "start": 7314.925, "end": 7316.865, "text": "are added to it.", "segments_merged": 1 }, { "speaker": "SPEAKER_13", "start": 7449.085, "end": 7449.345, "text": "True.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 7449.485, "end": 7455.845, "text": "Now everyone back ready to go. We're gonna s head into external auditor management letter.", "segments_merged": 1 }, { "speaker": "SPEAKER_02", "start": 7456.745, "end": 7457.125, "text": "All right.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 7459.645, "end": 7460.805, "text": "Whenever you're ready, begin.", "segments_merged": 1 }, { "speaker": "SPEAKER_09", "start": 7460.805, "end": 7533.445, "text": "Okay. I'm the only one here. Is it okay if I just stay here? Is that okay? Okay, good. They all abandoned me. So good morning. Okay, so following an annual audit, should there be any recommendations related to the business issues, potential efficiencies, or enhancements to processes or internal controls, uh, we would raise some of these as part of our formal letter of recommendations. So following the 2025 audit, we have one recommendation related to timely communication of matters impacting the consolidated financial statements in the area of investments, uh, along with administration's response on how they will address this recommendation. We will follow up with administration during the 2026 audit on the status of addressing this recommendation. And we normally would expect that any recommendations would be uh would be addressed within the next audit cycle, with the exception of certain recommendations if uh they allow for a longer timeline in terms of addressing the recommendation itself. In the letter that we have provided, uh we have also carried forward prior recommendations and administration's response on the status of addressing the recommendations and Deloitte's responses as well. With that, I will take any questions from the committee, should there be any. Thank you.", "segments_merged": 2 }, { "speaker": "SPEAKER_11", "start": 7536.905, "end": 7550.065, "text": "Does anyone have questions or want to go in camera for No? Alright, who wants to move it? Public member McDonald. We'll move it. E scribe when you're ready.", "segments_merged": 6 }, { "speaker": "SPEAKER_03", "start": 7566.765, "end": 7572.405, "text": "Councillor Pantasopoulos, your vote, please. Yes. Thank you. Chair, all the votes are in.", "segments_merged": 4 }, { "speaker": "SPEAKER_11", "start": 7572.985, "end": 7595.585, "text": "Please display the votes. Motion is carried unanimously. Thank you very much. Now we will have to go in camera for the next portion of our agenda. Uh Councillor Clark, would you like to move to on camera? And Clerks, we're you got your mover, but take your time. We we're ready when you are.", "segments_merged": 5 }, { "speaker": "SPEAKER_03", "start": 7596.145, "end": 7597.985, "text": "Can't keep up with this.", "segments_merged": 1 }, { "speaker": "SPEAKER_18", "start": 7608.825, "end": 7610.005, "text": "Yeah.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 7617.005, "end": 7620.465, "text": "Yeah, we'll leave once we vote. We have one there, yeah.", "segments_merged": 1 }, { "speaker": "SPEAKER_03", "start": 7631.585, "end": 7648.725, "text": "Apologies, Chair. Just because we're bumping up relatively close to the lunch break, we're going to put a um and further pursue into section seven of procedure bylaw 42M 2025. Committee suspend section 82B I of the procedure bylaw to forego the lunch recess to complete the remainder of the agenda. Are you okay with", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 7648.725, "end": 7656.985, "text": "Perfect. All right. And then", "segments_merged": 2 }, { "speaker": "SPEAKER_03", "start": 7660.765, "end": 7663.925, "text": "Uh sorry, who moved the uh the motion? Okay, Councillor Clark? Okay.", "segments_merged": 2 }, { "speaker": "SPEAKER_11", "start": 7663.925, "end": 7666.965, "text": "or no, did I put who was it? Clerk Clerk? Okay, just make it sure.", "segments_merged": 1 }, { "speaker": "SPEAKER_03", "start": 7667.425, "end": 7687.345, "text": "Okay, thank you. Councillor Jameson, your vote, please.", "segments_merged": 2 }, { "speaker": "SPEAKER_02", "start": 7689.325, "end": 7689.705, "text": "Yes.", "segments_merged": 1 }, { "speaker": "SPEAKER_03", "start": 7689.905, "end": 7694.885, "text": "Thank you. And Public Member McDonald, your vote, please. Thank you. All the votes are in.", "segments_merged": 3 }, { "speaker": "SPEAKER_11", "start": 7695.205, "end": 7704.885, "text": "Please display the vote. Motion is carried unanimously. Please log off of the current teams and you will receive the link for closed in your inbox.", "segments_merged": 2 }, { "speaker": "SPEAKER_00", "start": 8743.985, "end": 8749.845, "text": "The audit committee will be resuming in public meeting shortly. Please make your way back to the Engineering Traditions Committee room. Thank you.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 8973.145, "end": 8974.025, "text": "Five minutes, guys.", "segments_merged": 1 }, { "speaker": "SPEAKER_03", "start": 8975.125, "end": 8985.945, "text": "Thank you, Chair. To confirm quorum, Councillor Jameson. Councillor Clark? Councillor Pantozopoulos. Public Member Kim. Public Member McDonald.", "segments_merged": 5 }, { "speaker": "SPEAKER_11", "start": 8986.525, "end": 8986.885, "text": "There you go.", "segments_merged": 1 }, { "speaker": "SPEAKER_03", "start": 8987.125, "end": 8988.125, "text": "Public Member Niker.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 8988.745, "end": 8989.105, "text": "Yeah.", "segments_merged": 1 }, { "speaker": "SPEAKER_03", "start": 8990.085, "end": 8991.145, "text": "And Councillor Yan S.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 8991.145, "end": 8991.465, "text": "Here.", "segments_merged": 1 }, { "speaker": "SPEAKER_03", "start": 8991.645, "end": 8992.885, "text": "Thank you. We have quorum.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 8993.065, "end": 9008.225, "text": "Rise and report by Councillor Jameson. All in favor? Motion is carried unanimously. The next one we'll go to is 9.2.1 external auditor report moved by public member Kim. And E scribe when clerks are ready.", "segments_merged": 4 }, { "speaker": "SPEAKER_03", "start": 9019.945, "end": 9020.825, "text": "Chair, all the votes are in.", "segments_merged": 1 }, { "speaker": "SPEAKER_11", "start": 9021.045, "end": 9039.645, "text": "Please display the vote. Motion is carried unanimously. That takes us to item 9.2.4, city auditor verbal, moved by public member McDonald. And e scribe when clerks are ready.", "segments_merged": 4 }, { "speaker": "SPEAKER_03", "start": 9052.285, "end": 9055.205, "text": "Councillor Clark, your vote, please. Thank you. All the votes are in.", "segments_merged": 2 }, { "speaker": "SPEAKER_11", "start": 9055.405, "end": 9081.125, "text": "Please display the vote. Motion is carried unanimously. Uh all right, that takes us to 10.1 a briefing. So I hope everyone has read it and to public. We have a briefing report to uh read. And now I will seek in it. Someone to adjourn. Public member McDonald smiled first. Alright. There you go. Uh we are adjourned.", "segments_merged": 10 }, { "speaker": "SPEAKER_09", "start": 9083.245, "end": 9083.825, "text": "Yes.", "segments_merged": 1 } ], "full_text": "Thank you, Chair. To confirm quorum, Councillor Jameson, President. Councillor Clark, Councillor Pantozopoulos, Public Member Kim, Public Member McDonald, Public Member Niker, Mayor Farkas. And do we have any other counselors online wishing to participate in today's meeting? And Chair Weines. Here. Thank you. We have quorum. Thank you very much. I'm gonna pass it over to Corey Smiley for land acknowledgement. Oki Mboastich Donata Tonshe. Indigenous peoples have their own names for this area that have been in use long before settlers named this place Calgary. In the Blackfoot language it is called Mojinsis. The Ithaca Nakota Wiskataubi First Nations refer to this place as Wiskaba. Oyade, and the people of the Sutina nation call it Gutsis. The Metis call the Calgary area Otasquane. We appreciate and acknowledge that we are gathered on the ancestral and traditional territory of the Blackfoot nations of the Sikhsika, Bigani, Guinei First Nations, the Ithaca, Nakota, Wiscotabi First Nations, comprised of the Shiniki, Bear's Paw, and Goodstoney First Nations, and the Sutina First Nations. The city of Calgary is also homeland to the historic Northwest Metis and to the Otipemeswak. Métis Government, Métis Nation Battle River Territory, Nose Hill, Metis District 5, and Elbow, Metis District 6. We acknowledge and give gratitude to the many First Nations, Metis and Inuit, who live here and call Calgary home. Thank you very much, Corey. Uh we'll move on to the confirmation of the agenda. Uh could I get a mover, please? Councillor. Uh public member McDonald to move the uh agenda. Are there any amendments to the agenda today? See none. Uh all in favor of confirmation of the agenda? Motion is carried. Uh confirmation of the minutes. Uh public member Kim? Any corrections anyone noticed? No. Great job. All in favor of moving the minutes. Thank you. Motion is carried. Now it takes us to 7.2 Calgary Housing 2025 annual report. Please come on down. And whenever you're ready to present and settled, begin. Good morning, members of Audit Committee. My name is Anna Nelson. I'm the chair of the board for Calgary Housing. With me today are Adam Rock in the end here, Board Director and Chair of our Audit and Risk Committee, Boh Zheng, interim president and CEO, and Jana Jankova, VP Finance and Risk Officer. We are pleased to present to Audit Committee our 2025 annual report today. Next slide, please. I'll present a few key highlights for the committee with full details that were provided in the committee report. Our recommendation is that audit committee receive this report and presentation for the corporate record and keep attachment six and the closed meeting discussions confidential pursuant to the Access to Information Act. Next slide, please. Calgary Housing is a wholly owned subsidiary of the City of Calgary and Alberta's largest provider of non market housing. The organization operates as a private corporation under the Alberta Business Corporations Act. Every day we support more than 27,000 Calgarians. Through housing programs that promote stability, dignity, and inclusion. We are continuing to grow our role as a housing developer on behalf of the city, with our strong financial position exemplifying our ability to implement the strategically planned growth while mitigating risk and sustainably growing our reserves for future operating and capital needs. Next slide, please. We are proud to steward housing portfolios owned by the government of Alberta, the city of Calgary, and Calgary Housing. The majority of the homes we offer are operated as mixed income housing, shown in the blue on the slide, on the right hand side, where we offer a range of rents from deeply affordable to near market rates. The mixed income portfolios are fully sustainable, primarily through rent revenues. And Calgary Housing does not receive tax supported operating funding from the City of Calgary. We continue to provide social housing property management services and administer the rent supplement program. On behalf of the province of Alberta, offering housing for low-income households. 95% of our residents were stably housed in 2025. And stably housed is defined as housed for more than three months and not in arrears exceeding 30 days. 75% of residents at resident exits occurred for positive or neutral reasons. The average occupancy rate across our portfolios, CH portfolios in 2025 was 97%. With an average unit turnaround time of 30 days. Next slide, please. 2025 marked the third year of Calgary Housing's eight year strategic plan to achieve the vision of being a leading affordable housing provider in Canada, supporting individual well being and inclusive community building. Our 2023 2030 strategic plan is anchored in four priorities that guide our work supporting resident success, strengthening assets and financial performance. Building organizational excellence, and increasing housing supply and choice. We are focused on advancing all four strategic priorities supported through coordinated delivery across housing development, operations, and asset management, strengthened financial stewardship and disciplined capital planning, expanded partnerships with public and private sector organizations, and continued investment in organizational capacity systems and processes to support sustainable growth. Strategic priority number four, increasing housing supply and choice, was approved at last year's AGM. Since then, CH has successfully accepted the first asset transfer for the province of Alberta, as well as executed on the first acquisition opportunity with ROHIT. I'll now ask Adam to present the financial highlights from 2025. Thank you. Calgary Housing's 2025 financials received a clean audit opinion and highlight our strengthening financial position. The current graph pertains only to CH-owned, not city-owned assets that we identified on the previous portfolio slide. CH's 2025 audited financials demonstrate the organization is well positioned to achieve its strategy of increasing housing supply while meeting its obligations to maintain and improve existing housing assets. Over the last decade, CH nearly doubled its total assets from $134 million in 2016 to $245 million in 2025. As a result of growing assets and decreasing liabilities, CH shifted from a net debt position of $10 million in 2016 to a net asset position of $60 million in 2025. That increase in asset value reflects the increasing quality of the assets and enables housing stability. 84% of CH owned and city owned assets are classified as being in good or very good condition despite an average age of nearly 50 years. The same cannot be said of me. In 2025, CH deployed $16.7 million in capital funding to improve the asset condition of our homes. When we look at all portfolios CH manages, we generated a surplus in 2025. Removing one-time items that are not part of our normal operations, such as capital grants and an asset transferred to CH, we generated an $8.6 million surplus. That $8.6 million is funding our operating and capital reserves to meet future maintenance obligations and will be used for capital projects to increase housing supply. Since establishing a reserve target, Calgary Housing has made steady progress. In 2025, our capital reserves reached 31% of the targeted amount. Increasing housing supply typically requires direct equity investment by Calgary Housing. Next slide, please. I will briefly touch on Calgary Housing's top risks identified and managed using the Integrated Risk Management Framework, IRM. Calgary Housing Administration continues to operate a mature, integrated risk management framework aligned with the city's IRM model. Most of our significant risks currently relate to our ability to support growth. This capacity will depend on how fast and how much we can increase affordable housing supply, mitigate funding and procurement constraints, supply chain disruption. Escalating labor and material costs, and geopolitical pressures. Mitigating strategies include strategic procurement, early contractor engagement, alternative construction methods, enhanced project contingencies, and ongoing market monitoring. Provincial capital infrastructure risk, one of our top risks for last year, has decreased in likelihood and impact and is no longer among our top risks for this year. This reflects our ability to mitigate this risk through strategic use of provincial operator rating and emergency capital funding. Notably, in 2025, no extensive risks were identified for Calgary Housing. A key positive outcome reflecting over a decade of assessing, monitoring, and mitigating risks through the rigorous IRM process. It's also important to note that while the organization is addressing its principal risks, demand for affordable housing remains strong. CH will continue to have challenges meeting the expected continued growth in demand for affordable and deeply affordable housing. We are acting on shareholder direction to increase housing supply, but continued investment and efficacy to other governments to continue and expand investments in affordable housing is still critical to address the growing need. Now I'm pleased to pass it on to Bo, our interim CEO, to speak on our growth strategy milestones. Next slide, please. Thank you, Adam. We are proud to share some significant milestones in our development and acquisition program this year as part of our newly approved strategic priority for. We are currently advancing 880 affordable housing homes across eight projects at various stages of delivery. Mount Pleasant, the picture on your left, is Calgary Housing's first redevelopment project on behalf of the city of Calgary, bringing 16 new affordable housing homes to the community. Located on a former parking lot and built on city owned land, showcasing Calgary Housing's growing capabilities in delivering new affordable housing in the city. Construction progressed according to plan and was kicked off last year, remains on schedule and within budget with a planned opening later this month. In 2025, Calgary Housing also negotiated an acquisition of the Midfield Heights property, which will be built by Rohe Homes over the next two years. The agreement was signed in Q4 of 2025 and finalized in Q1 of 2026, and construction began in Q2 of this year. Other active developments project include the Southview Phase 1 project, which has started construction, and an official groundbreaking event will be occurring in two weeks. The Birchland Tower Retrofit has been completed, the interior demolitions in early 2025, and we're currently in the active permitting stage with planned construction in Q3 of this year. And finally, Mara Loop, the feasibility work has commenced in late 2025. Design and permitting are expected to occur in Q3 of this year, with construction expected in Q2 of next year. These are all advancements that we've grown very well proud of in the last 2025. And now I'll pass it back to Anna to speak on the potential impacts of housing stability to make residents' lives. Thanks, Paul. At Calgary Housing, we understand that a home is more than a place to live. It's the foundations for dignity and stability. Earlier I noted that 95% of residents were stably housed in 2025. Stable housing is the goal. In many instances, stable housing leads to opportunity. This slide is important as it highlights where this opportunity can take people. Kaylee, a Metis woman from Manitoba, came to Calgary facing unstable housing, incomplete education, and personal challenges. She left a domestic violence relationship and was raising her two young children when she accessed Calgary Housing. Kaylee had the opportunity to build a better life for her young family now that she was in secure, safe, and affordable housing. This provided Kaylee the opportunity to focus on her educational goals. She completed high school and pursued post-secondary education as a health care in a in the healthcare aid program at Bow Valley College. In Kaylee's words, if I didn't have support from the Metis organization and Calgary Housing, I wouldn't have been able to go back to school. Now employed full time, Kaylee has transformed her life for her family. She can now see her next career goal of becoming a nurse. That concludes our presentation. Our recommendation again is the audit committee receives this report and presentation for corporate record, keeps attachment six and the closed meeting discussions confidential. And we're now ready for questions. Thank you. Thank you. Oh wait, see if anyone has questions. Councillor Panthilopoulos. Thanks so much for the presentation and the background. Maybe I'll just start at at a higher level. Um Calgary's goal, 3,000 non-market homes. Our uh administration presented last week, I think we're at 56, and it's a consistent underperformance. Maybe just speak from a Calgary housing perspective. What do we need to change? What are some best practices? You know, if we really want to get that goal to 3,000, sounds like there's the need. You know, what are some things you're observing as one of our arms executing on that strategy? What do we need to amend and to get close to that target? Because you know, 56 out of 3,000 is a failing grade. Mm. What's like that's the Yeah, happy to answer that. So the Calgary Housing is very much a player on a large team for the delivery of non-market housing in the city of Calgary. And the the goal of the 3,000 units per year, I think, is a very appropriate and ambitious goal and should be as best as possible to try to meet it. For us, in terms of what things can help us to deliver and scale even greater, is the portfolio funding approach rather than a project-by-project approval basis that has given us the flexibility to be able to deliver quicker, higher quality, and be able to leverage more programs from other levels of government on a more expeditious basis. That way, the flexibility allows for us to be able to scale at a much significant level. I would say, in terms of the scale, Calgary Housing took over the development functions for uh the affordable housing aspect for um Really in the last two years. So in the last two years we scaled from zero to eight hundred and eighty. And I think we can grow even further if we have the ability to have secured, uh understood funding uh for the longer term so that we can prepare and plan. We have uh a pretty ambitious 10 year plan as well as our part of our strategic priority, and that allows us to pre plan a lot of our assets and allows our portfolio approach to be scaled up and planned for in the long term so that we can essentially scale to the 4,500 target in the next 10 years. Maybe y just picking up on that pivot sort of two years ago and and I just heard from the strategic plan last year, you added that fourth item uh about um uh you know, expanding and building. And just m maybe scope creep Only in the sense of you operate a wonderful uh business, it's it's cash flow positive, it's it's it's great. And then two years ago now we're pivoting into the big leagues of building, of being a developer. And maybe just talk about that decision, the skill set, uh, you know, the dangers, you know, and your risk, it didn't sort of jump up, it actually didn't show up to say, hey, we're now pivoting, we're now entering millions of dollars, potential mortgages, etc. Maybe just speak to that why the board got comfort, didn't include it into the risk matrix, see that we did a huge pivot two years ago, but it sort of was quite moot on the uh the risk profile. Why do you think we can adapt and become a developer and get those 4,000 units, not just through the traditional acquisition versus uh the growth that you're planning? You know, from a bo a board perspective, it did it did raise to a risk profile when um we did that pivot. Um we look at the operations of the organization and the fully sustainable uh mixed income model. Every every facility and building that we build is self-sustaining. And there's a a mix of uh grant uh funding and debt funding. And I think uh we've we've talked quite a bit um over the last uh few months, especially around uh you can't take a building and expect to have a high level of debt and have a low level of rent. So our mixed income model allows us to have rents at different levels that can support some debt but still needs capital funding. And to Adam's point earlier at the end of his presentation, we do we do require uh non-debt funding and investments in these projects. And when we have the right mix, then the facilities are sustainable, and that was a huge risk mitigator for from the board's perspective on uh building the buildings and operating them. The other risk that we identified was just do we have the um in-house expertise to do that? And uh it it evolved into that build-by-partner uh strategy that we're working on, where when it makes sense, we'll build it, when it makes sense, we'll buy it, and when it makes sense, we'll partner. And so Rowhit is a great example of that uh strategy where it made very good sense to partner and have another organization build that uh for us. And so as we look at all those different levels of risk mitigation, uh the board's quite comfortable, and in fact, I would argue the board would like to see more development. And uh and and Bo and team do a great job in kind of keeping us balanced and realistic on uh on what uh what we what we should be doing. Thanks, the thanks so much for that. I think you mentioned the presentations. I think 31% funded of sort of the long-term ongoing maintenance. And you know, the city has our challenges as well. I think it was 31%. Maybe talk through is there a plan to get to 100? Is that even a realistic goal? And then that 70, 69% missing, you know, what risks is that? Is is it? Yeah, if you just speak to that. Ever get to the 100 and and being short. Uh how that's impacting your operations and subsequent audit committee reports. Jan, I can kickstart and I can add to. Yeah. We um implemented our reserve strategy back in 2022, and so um our um ability to save and um contribute to those reserves um is now more focused um into those um reserves um and 31 percent was achieved in a short amount of time. Um in terms of the uh longer term uh we have a 10-year um uh target to uh achieve that that plan to to get to 100 percent. Of course, we have to recognize that we not only will be contributing to uh those reserves, but there will be drawdowns. There will be times when we need that funding for life cycle maintenance, for uh the equity portion of uh uh projects uh going forward. And um so there will be some fluctuations. Uh however, the target remains uh for uh the 10 years uh to to reach that target and uh uh with an uh uh adapting along the the way with those uh needed drawdowns and replenishment of the reserve to the level that uh um we we need. And we have also uh Minimum reserve for life cycle maintenance that protects the properties to always have the minimum required for life cycle maintenance uh going forward uh for the long term. I think the other aspect I'll add with reserve is that our reserve policy or our reserves is on a portfolio basis. So it's over a multitude of uh buildings and assets. And uh through our preventative maintenance and ongoing just proper asset management practices for our assets, the probability of the larger portion of the assets failing all at once is low. And as such, it's the the intent of the reserve is to you know really to meet that uh financial obligation should Sometimes emergencies, sometimes unforeseen circumstances, sometimes planned or occur. And with the aspect of being in portfolio and the large size of that reserve, we're able to respond to the needs. So in terms of risk mitigation, I think we're well placed in terms of even at 30% to be able to manage our risks. That being said, the assets are aging. I think the comment is you know, 50 years is the average life. That's the average life. Some of our buildings are you know moving up to 60, uh almost near 70 years. So with that, obviously, investments needs. And our part of our asset management strategy is really to take a look is it worthwhile to continue to invest in that? Or is that um you know, reaching end of economic service life? It might be time to redevelop, densify, and refresh that asset from a different perspective. So those are part of our internal asset management strategies, and that those help us make the decisions to best use that reserve. Perfect. Thanks so much for sharing that story about Kaylee and it speaks to you know the real asset or the people and that that that sort of transition, you know, somebody enters and then hopefully you know exits. With that in mind, on uh attachment one, it it speaks to the average tenure is 3,100 days, so it's kind of 10 years. And and I'm just trying to, you know, it maybe to speak to that goal. That was surprising. You you know, if the goal is to help Calgarians get on their feet, if you will, enter, but a 10 year cycle, that's on average, that means there's people there 20 years and and folks like Kayla that just came in. So maybe just speak to that is I i is that accep acceptable's not the right word. Is is that the target? Is that the goal? Do you wanna is is the purpose to sort of transition people out to I mean not home ownership, but at least more of a sustainable versus a continued sort of subsidized rent lifestyle. I was surprised. Thirty one hundred seems like a big number, but I'm new to this, so No, that's a that's a great question. And for us, really, our position is not necessary to transition people out. And if they do transition, it's a it's a great news story in the if they're moving on to home ownership or market housing. But for us, it's just creating that stability of housing so that the individuals can thrive in their own way. Um I I uh oftentimes have arguments with our communications team on the average stay because there are folks that live with us that will live with us for the rest of their lives. They just will not move out because of their circumstance, life circumstances. And there are other folks that literally just need us for a year to catch their breath, to have a moment of stability so that they know what they're expecting on the rents market, so they can catch their uh their their you know next wave of to be able to move on. So the the delta between you know the average versus the low and the high is extremely uh large. And but for us, really, it's we want to provide safe, affordable, quality housing, and people can choose to use that space uh as their reprieve for however long they wish they to be. Obviously, if they uh have the financial means to be able to move on, we have conversations with them, we encourage folks. Uh a lot of times uh people need to be told, I think the metric is seven times to say, hey, you you can qualify for market housing, you can qualify for a mortgage, you can qualify for a partner for, for example, with Habitat Humanity. And uh it's giving them that confidence that, yeah, you you do have that capability and reminding them that you that this is a viable path for you before they actually take action. So those are you know part of our partnership programs that we work with. Um So it's the the average is perhaps misleading in some ways. Yeah. Okay, maybe in subsequent that would be understand that because that again it jumped up. Yeah. Just maybe two more questions. Um I think your your conversation was, you know, cost effectively grow and and through development, and Yeah. the average cost per door across the active development process was four hundred and thirty two thousand. I just Googled the average purchase price of a condo in Calgary is three hundred thousand. So I'm just thinking strategically, everybody loves a shiny new building. Um why wouldn't we pivot that $10 million, $100 million? You can now up tick three hundred, you know, thirty-three percent. Maybe just talk through that strategy logic. And that was just me simply Googling and and you have better intel being real estate professionals. Just just talk through that the reconciliation of very strong financial goals, objectives against um thirty-three percent above what you could buy in my neighborhood or anywhere in Calgary. Absolutely happy to speak to that. The The the way that we've really structured, and I think Anna touched on this in terms of our strategic priority four is to build by partner. So we'll take whatever opportunities there are. And we the rowhead example comes up in terms of acquisition. Those are, you know, the the prices 300, just less than $350,000 per unit on the on the on that project. The other side of it is our our build form is usually on a site that we already own. So on an asset that's reaching the economic service life. So our choices are either to invest in something that may not last as well, not the best use of money, or to densify and rebuild. And though anytime you're densifying on an existing site and rebuilding on that site, the costs are more. Because also we're a public body and needing to follow the public sector procurement requirements, those aspects automatically just increase the cost premiums for the work that we do. So it is a balancing act, absolutely. If there's opportunities for us to deploy that capital elsewhere when we're not at a point where the asset is uh reaching the economic service life, that's where we'll deploy the capital. And it's essentially making the opportunity for us to deploy the capital in the most effective way wherever possible. Perfect. I'll be certainly watching sort of build through there. And then just finally, um, on your risk matrice, the one that jumped up to me was um of all the risks, it said uh CH owned and managed assets risk falling below minimum health and housing standards due to inefficient uh funding to maintain aging properties. And that that concerned me. Is your employees have a city of Calgary logo? It's represents city of Calgary. I know there's provincial assets and and that that minimum health standards, you know, we're the city of Calgary. Maybe talk through that. Is there buildings? Are we at that stage? How close are we to that? I think that's unacceptable to Calgaryans to have humans living in uh, you know, minimum. I can't imagine what I see in my children's room and you know that metric. So just just speak to that. That really jumped up to me, and it obviously on your radar. How many buildings, what are we talking about, quantify, and how are you going to address that? And what's the province and the city need to do that we don't fall through because we can't be evicting people because there's standards. I I'm I always say I'm very pleased to say that uh for the city and CH owned assets where Calgary Housing is the asset manager, that is a very low risk. It's a risk that we constantly monitor just because it is something of concern given the age of our assets, but that is not a uh a realized risk, it's not an issue. Um the numbers uh 80% of our properties are in good and very good conditions, well above the minimum health and safety standards. There are properties that we are deliberately um running to the end of the economic service life because we have an asset management plan for development of that site. Um, and it's very purposeful. The provincial assets, uh, as you'll note, as um Adam mentioned that it's actually decreased from our critical risk this year because of the investment, not only by the province in our in meeting our uh ask for the operating dollars, but also utilizing some of our existing asset management strategies on that portfolio. So I want to clarify, we are the property manager for the provincial portfolios, whereas we're the asset manager for city and CH. So asset decisions and such uh for the provincial portfolios is on the province. So we make the recommendation, they decide whether they're going to do it or not. Um, and in that sense, the province has um stepped up in the last couple years to meet our obligations for, to meet our requests for our operating dollars. And with those, we're able to manage a lot of the risk. So, as such, the the risk has decreased uh from 2024 to 2025 because of that. So we're not at that point, but is always constantly on our radar just because of the assets and their age. Um, the opportunity for one pipe leak that on a large multi story building it can shift that tide very quickly. Um, so this is something we're constantly watching as a risk. Perfect. And and finally, thank you so much for hosting me and my team to go through visit some of your uh uh projects in ward and out of ward as well. I learned a lot. Uh I learned met a lot of your team and you can see the commitment and passion they have for helping host Calgarians, and that was uh wonderful. It's always good when you know you can privately pull them aside and ask them a question or two, and they echoed uh their strength and commitment. So thank you so much and to your team and for hosting us as well. Thank you. Our pleasure, thank you. Thank you. Thank you. Hope we can remember Kim. Great. Thank you for your presentation and for the good work that your organization does. I'm just building off those questions. The average tenure of like roughly 10 years, you must have quite a wait list then that accumulates through that time. How do you manage that? And do you like is the average tenure an outcome or is that something that you're actively trying to manage as well? It's I would say it's a um two-sided uh approach. So for us uh every time um Perhaps back up. The need is immense and we're not meeting the need. We can triple our supply, and I think we would still very much be in need. The current wait list that's uh folks have often referenced based on the provincial portfolio, um, it's a prioritization list. It's based on the highest needs individuals get access to housing first. That list uh as the end of April, it's just under 8,000 families. Um and we manage 2,700 homes on behalf of the province that would pull from that wait list. So, as you say, like I can triple my my volume of homes and I still wouldn't meet the current demand that's there. That being said, uh, we are as part of our strategic priority four to increase affordable, like increase housing uh and supply. And uh through our mixed income approach, we have the the spectrum of housing, and those all are trying to meet as much of the affordability needs of Calvary as possible. Uh so we want to grow, we want to try to meet that need as we can. Um And that that is our one of our strategic priorities. Great, thanks. And now um shifting more to the governance side of things. When I was looking at the board skills matrix and I looked at remaining terms of particularly directors that are non-counselors, I saw some zero and one-year terms. How do you manage that board continuity and refreshment process? Great question. The zero term, I'm one of them, is my term of three years is expiring this year, and then we renew for another three years. So that'll be done at the AGM. Two directors are renewing their terms, and then everyone is nominated and approved for three-year terms and three terms of three years. So upwards of nine years. An individual could be a director. We do uh when there's vacancies, we do a formal recruitment process. I believe MNP was our recruiting consultant this year. And we had um, it's a bragging point actually, we had a fantastic um turnout. We had 300 over 300 identified candidates. We had three open positions, and that went down through a series of um trying to get down to the three, which we have done, and we'll be bringing three uh additional board members onto the team uh at the AGM in two weeks. Or next is that next week, next week. And uh and then we do uh we do succession planning uh where and we go through the skills matrix annually and look at where people are in their terms and uh all the different skill sets that we need. And where there's a gap that informs the recruitment process. The team did an excellent job uh developing a new profile for board roles this year, really talked about uh the complexity of the organization, the development um increase in development, and uh and the commitment of the role. And even with that, we were we were really pleased with the interest that Calgary Housing has from the from the community in being part of the organization. That's a great response. Happy to hear it. Speaking of the audit and risk committee, could you speak to the financial expertise of the members on that committee? Do you have any CPAs on it? How do you staff up for the financial expertise there? That's a good question, and something we're uh We're constantly mindful of. I have a law degree. I've been practicing corporate finance for over 20 years, financially literate. Have held several board positions. The previous audit chair was Anna, who's a CPA. We have uh at least one CPA on the committee at the moment. I'm sorry. City representative on committee. Yes, the city representative as a CPA. But yes, that is something we're mindful of. And one of the new recruits to the board we have um we have identified as a potential audit committee member and future audit committee chair because of his uh financial credentials. Great, thank you. And my final question is with regards to the status of your search, your executive search for the permanent CEO. Um we are we are putting together a process and again we'll we'll use a recruitment firm and uh a significant amount of work is planning to be done over uh Q3 and Q4 on that, and so that's uh in progress for sure. And we are very grateful for Bo to be doing such a great job while we we get that process underway. Sounds like you're in good hands for the interim at least, um. Thank you very much. Those are my questions. Thank you. Councillor Jameson. Morning. Uh Councillor Pandasophilos asked some of the line of questioning that I was going to, so I'll uh just uh change gears here a little bit. Um I like that you guys have a sustainable or self sustaining model. I wish more uh partners would would kind of go more toward that route. Uh but in that lens, um at what point does an organization I believe you guys have 87 million in cash? And uh uh that's page uh attachment two, page twenty, and sixty million in net assets, which is attachment one, page two. Uh need stop needing annual city subsidies, and what does the path toward total freedom look like? Jana, do you want to take that? Because that's a lot of money. Yeah. And uh so you guys are getting into a place where, you know, is the is the is the goal one day to uh not or be able to say as as like the first partner, we don't need um subsidies anymore. Is that is that the the the end goal and how do you get there? Yeah, so uh currently we do not receive operating subsidies from the city of Calgary. Uh we do receive some infrastructure funding um uh for the city-owned portfolios and also for um the Calgary housing owned portfolios, um and that is a very critical uh investment into those portfolios to maintain them in uh good and very good condition over time. Um our cash um is uh a lot of it is restricted, uh I believe, out of the um 86 million, about 11 million is on unrestricted. We hold uh for an example uh resident deposits. Uh we hold um uh some cash reserves on behalf of other entities as well as uh us uh and uh the city as well and so uh we have some advances, cash advances, um and so the cash uh uh piece is uh some of it is externally restricted, some of it is um internally restricted. Um and um in terms of the assets overall, um Yes, our n especially our non financial assets have increased over time, uh and that is due to the significant investment we've been able to make in those assets over time and improve their condition. So I perhaps add a little bit more to that with regards to the being fully self sustaining. Um the the goal for us is to have the lifecycle maintenance to be self sustaining as we're increasing our supply, as our changing our uh our um mixed income model to be able to generate the surpluses needed for the annual um. Capital maintenance aspect, but for capital renewal, so major renewals of assets as well as a new development. As mentioned, like there's no way for us to do it without some kind of grant funding. Because if we're uh aiming to have a low average rent for the properties, we cannot have debt associated with it. It's just a part of our operating uh system that it's just numbers. You can't uh have debt and to a significant amount of debt and to charge low rates. Um there there has to be some kind of subsidy. Subsidized housing requires subsidies. You guys I believe have a eight point six million dollar surplus, is that correct? Correct can that go to offset the subsidies or or what what what's your plans for that? So for us it's really uh our our focus is the um putting that money into the reserve. So as as mentioned, we've only have th met 31% of our capital reserve target. So we're continuing to invest in that and creating our our surpluses to to meet that demand in of um input on an annual basis. Once we it you know reach that 100%, that's a whole different conversation in terms of what we can do with that additional surplus for sure. I know that um you guys manage and and you know thank you for the tour uh that we went on, uh quite a large provincial portfolio also. Um This one I I wasn't able to ask a lot of questions then about that. Um what I'm specifically wondering is what financial due diligence process does this Calgary housing go through before accepting a transfer from the province? Yeah, that's a fantastic question. So for us, we do the the first and foremost was we do uh building condition assessments. So these are third-party engineering assessments of the entire building to make sure the the core building system's structural and mechanical envelope uh is uh understanding the condition. So if it's in terrible, terrible condition, it's not something we want to take on. If it's in good condition that needs us a little bit of investment, that's part of the negotiations for the uh capital funding that comes with that asset transfer. The other side of it is as you mentioned, our our teams have been operating these buildings for decades. So our understanding of how that system actually, how that building actually operates is uh a very core component of our evaluation criteria. And through the the experience of our plumbers or mechanical maintenance workers or building maintenance workers, we're able to get a very good sense of what that property is capable of handling or how long the economic service life is, even without doing the engineering study. Uh so with all those components of information, we make an assessment. And if it's a value proposition where the uh cash that's going to come with the asset transfer from the province is more than what we anticipate the cost to be, we make the recommendation to the board for that asset transfer. If it's less, uh, we politely say thank you, uh, but no thanks. Okay, so we are able to say no. Yes. You know, if if it's a bad deal for the city, we can say no. Absolutely. Yeah, because that's I I'm just wondering if if that was the cr if the criteria is really to accept the best assets, or you know, do you guys have the um uh I guess goal to just simply grow your portfolio numbers as many as you can, you know, with potentially really bad assets. Um, you know, and how that actually works with that relationship with the province. I would say there are opportunities where we would consider a quote unquote bad asset, especially if it's the land value and opportunity for us to redevelop that site in the near term. So that's one opportunity where we can leverage two sources of funding from the province. One being the the capital renewal funding that comes with an asset transfer. And the second is with regards to the affordable housing partnerships program for new developments. So we can leverage both together to be able to Take a an asset that's literally reached its end of economic service life and be able to redevelop that on a short, short uh duration basis so that we can get uh new housing built. Yeah, I think that's a a good path and and I I know in the future we're gonna talk more about that, but the the redevelopment path and the the private public partnerships, you know, is seems to be there's just a a lot of uh potential, you know, and I hope hopefully we can, you know, have more meetings and talk more about what what that could look like. Happy to. Yeah. Thank you for your time. Councillor Kirk. Thank you, Chair. Good morning, everyone. I mean, the wonderful thing about going after a number of speakers is some of these questions have been touched on, but I might approach them slightly differently. So in the report and through the conversation today, you spoke a bit about the balance between the classic acquisitions model and this new development strategy. You highlighted the landscape. It has changed for traditional asset acquisition. Can you speak a little bit to the transition of development and is this to would you say the offset sort of those changes that have occurred in your traditional model, or is it really just a growth strategy? For our growth strategy, really, it's we kept it open enough that we wanted to take the opportunities that come to us that made the most sense. So that we had the flexibility to really leverage the funding that's available, the um you know, taxpayer dollars, value for money. How do we get the best value for money? Um A lot of our acquisition opportunities in these partnerships types is really at a declining market opportunity. So when the market is not hot, it's not booming, and developers are looking for an alternative path to their traditional, you know, build and sell or build and hold, that's when we can come in and say, hey, we would love to take that asset and utilize it for affordable housing. If the market is booming and people are able to get, you know, 30, 40, 50% return on their investments, I I think the opportunities for them to come to us to sell it at a discount will be very low. So we have to have still retain our core expertise to be able to build at those times as well, because we want to continue to increase the housing supply. Yeah, great. Um during your questions with Councillor Pandasophilos, you highlighted that um some individuals will live their lives at Calgary Housing. And um I think that's very exciting and interesting. Um can you speak to the management of like that? I mean, obviously as an individual ages in place, their needs uh increase, and so how Calgary Housing will manage that as a mitigation, as part of your mitigation strategy. I mean, you know, inevitably anybody I won't go into the details, but you can imagine a senior there's instances there where certain risks emerge. Yeah. Yes. So uh we we're actually very proud of our um well I'm very proud of our customer experience teams in terms of how they approach the the services we provide to our residents, especially the aging residents. Uh Kyrie Housing is an independent living um company that those are the residents we serve. Uh so long as they're not in need of uh additional healthcare services and such, they're more than welcome to stay with us. We also have uh programs in partnerships with the province, the the RAMP program is one, as well as our own asset management teams are able to make um modifications to a unit if if someone wants to stay in the unit that better meets their physical needs. Um changing of you know toilet sizes and heights, uh, walk-in showers versus a tub. Those are the opportunities we're able to make uh on-site for those individuals. Uh there are other circumstances where, for example, uh an individual ages in place, but their family has moved on to other other opportunities and they're no longer needing a three-bedroom house. Those ones we were able to move folks around to either a different location to their liking or to uh a unit that's more self contained that has the accessibility needs already built in. A lot of our new developments, because we get funding from the province, requires that 10% of the units are adaptable. So those are perfect perfect units for uh some of our seniors who need a mobility challenge, and they can go into a unit that's already built in place for that challenge. Great. Um sort of within the same line of questioning, um you'd highlighted also in your conver in your uh in your presentation that you've got a number of partnerships. So as somebody finds their feet financially and can move out of traditional Calgary Housing, you can find access points for them elsewhere. But you're also moving to a mixed uh mixed income model. And so I just wondered if there's an opportunity or if you see an opportunity to uh sort of transition these individuals to like market rates, but to remain with Calgary Housing. That's something you've uh are sort of alluding to. It's uh so for us we we love the to be able to say that 100% of our units are non-market. So as such, even our near market is uh 10% below the the average rents of the of the community and that that they're in. Um for us to move to market rents, I think it's uh um a shift perhaps in in philosophy. And uh we'd be happy to explore that if you know it it made financial sense at the time. But right now, because of the our ability to uh Make the model work with 100% non-market. We don't see a need to play in that space, nor compete with uh market rentals uh in that. It's also a high risk. So if you're competing on the market side uh on a downturn, there's opportunities for uh greater vacancy numbers and as such uh lower rent, uh bigger bigger risk for us. So for us to be able to continue to say that we are a non market housing provider, 100%. Um I think it's a that's a pride point for us as an organization. That's amazing. That's great. Um you've highlighted reputational risk uh in your top concerns in this report. Can you speak a bit about your strategy to realign uh the organization in the current social and corporate landscape? Sorry, just perhaps clarify in terms of the mixed income model or I'm sorry, moving on to sort of you've highlighted reputational risk to Calgary Housing as one of your major concerns. And so just wanting to speak a little bit about how you intend to realign the organization to mitigate that risk. I would perhaps say there's not a realignment because I think we are uh mitigating that risk um in in how we approach our business. So the when we say reputational risk, it really comes down to the quality of the assets, um, making sure that they're uh at a minimum meeting the minimum of health and safety, but beyond that. Also how we treat our residents in terms of equity, making sure that they are not um disproportionate or in one way or the other discriminated against. These are existing internal policies that we have from our customer experience team as well as our assets teams to make sure that we are hitting that benchmark so that we are um not in a position where we would need to face that reputational risk. I'll just sort of clarify perhaps with um page eight of attachment for risk statement, confidence and trust in CH's ability to pursue and achieve its organizational mission and vision. Um effectively manage the organization, general misunderstanding, or lack of awareness related to housing programs, financials, human resources, and incident responses. So more on the social side, I guess, of rather than the assets themselves. I'm just trying to uh highlight this as and and give you the opportunity to speak to how you're approaching that work. Yeah. Sir which risk was that? Uh number six. Six. Likelihood, possible impact significant. Negative media, public or government relations could result in decline in public respect and support. So for us, it's all about bringing clarity in terms of the programs that we man manage, the program that we administer, and the programs that we are able to sustain. So for us, it's about bringing that clarity publicly to the folks that so that they have a clear understanding of what exactly we're able to offer and what things we cannot offer in in many circumstances. There are changes to legislation that we cannot modify because the province has mandated a specific requirement. We're following that. But able to communicate that need or that pathway for the residents is really where a lot of our work is happening right now. Okay, thank you, sir. Um oh pardon. May I just add? Uh yeah, I I think communication's the key. Uh we think uh We think Calgary Housing is doing a fantastic job. And sometimes we're not very good at communicating that Calgary Housing is doing a fantastic job or why it's doing a fantastic job. And I've really enjoyed our recent um um our recent um I was gonna call it a school trip, but but our Our thoughts with council members, getting to know council members personally, uh visiting um the homes that we operate and manage. Uh I think we should be doing more of that. And we'd encourage council members to maybe attend our board meetings as guests, uh, take tours with us. We'd be more than happy to host. That's a wonderful thing. That's a wonderful addition. Thank you for adding that. My final question really is around the provincial government and that relationship. You guys have a Cowgri Housing is a long-standing, decades-old, and unique relationship, integrated, sort of mixed relationship with the province. So I just wanted wondered if you could speak a little bit to how that relationship has evolved. I know that it relates you manage a lot of property on behalf of the province. And I just wondered if you could talk a little bit about how you how what it looks like, what the current landscape of that looks like, and how you'll be moving forward over the course of the next few years with that. Yeah, so the provincial assets, as as I mentioned earlier, we're the property managers. So we do have recommendations for how we should manage the assets or how to take care of the assets from an asset management perspective. But the province makes those decisions. I think we've improved our relationship with the province, uh, whether it's administration or politically, pretty significantly over the last, I would say, five years in terms of bringing their assets to a condition uh that's um not as high risk as previously uh were. Are they in good condition? I I would say not not quite the target that we would like to have as as comparable with the city and CH assets. Um but they have stepped up in terms of their funding for our operating dollars to be able to meet the demand that it it the assets require. On the capital side, um as a as a benchmark, we we did not receive as much as we were requesting. But it's also uh a testament to the province's strategy in terms of the stronger foundation strategy for the affordable housing sector, is that they want to get away from the asset ownership and they want to move towards the regulator and funder. So it is a strategy that's um their strategy, and we're helping as best we can to mitigate the impacts to the residents while they implement that strategy. So, in terms of the next uh few years for us, it's really again continue to advocate that for that funding, uh, continue appropriate funding for both operating and capital, and where possible to be able to leverage the opportunities we talk about in terms of assets reaching the end of active economic service life and be able to redevelop and densify and bring new uh new life to that site. Great, thank you. I'll just close by saying that um I'm a board member actually of Calgary Housing, not today um in this capacity, but um it's been incredible to participate in a wholly owned that is not only Calgary's like it's you're the oldest wholly owned subsidiary, but you folks are driving forward uh an amazing amount of work and what you've been able to achieve over the course of the last 10 years has been incredible. Uh really impressive work. So thank you. Thank you. Thank you. Public member Knacker? Uh thank you, Chairperson. Firstly, thank you for the report and also just to um echo what my colleagues have said that you know this is really important work that you're doing because uh once a person has a uh you know has a home, everything else um uh uh really assists to fall in place. So just a couple of follow up questions um from my side. Um I guess the one is around the reputation, and I don't want to uh spend too much of time there. But just wanting to know from a you know from a sort of uh triggers that you may see happening during 2026, uh is there um, you know, has the Calgary Housing sort of tested its, you know, crisis communication, um, its uh incident response process? Uh and I say this uh also because I sit on other boards from a social aspect. And while we never want to see these things happen, they do happen. So just wanting to know uh if that plan is in place and it's been tested. Yeah, so from a crisis communication perspective, for us really is that focus on uh potential asset failure. I think that is really the the highest risk for us in terms of uh crisis management. We have a very robust emergency response plan as part of our asset management requirements of our of our uh assets. And for us, we uh are on a continual basis on site. So for us to be able to see the the problems that may occur uh on a on a Expedited basis is probably one of our greatest assets. We have not only our property managers, we have our site managers, plumbers, mechanical maintenance workers, folks that go on site on a fairly regular basis to assess the risks. And for us, it's uh ensuring that our uh emergency management plans are in place and are uh updated as as regular as possible. So for us it's a a fairly routine process in that. And uh thankfully we have not had any uh major critical instances uh in 2025, and as such, we're um we're more of planning rather than implementation. Okay. And sorry, maybe just a follow-up. So more from a social sort of perspective, yes, the infrastructure lends itself to that social uh sort of um uh you know issue or incident. But on that front as well, I just want to gain a sense if there's a uh plan in place that has been tested. Perhaps uh if if you can clarify what um what specifically or what are some examples you can think of from the social perspective? Sure. So from a social perspective, uh, you know, if uh something actually happens to the infrastructure. Or somebody raises some concerns around the allocation of housings, and then it obviously has some sort of impact from a social perspective. So how is that managed? Yes, I understand there's a process internally, but when the process fails, for want of a better phrase, fails and it's uh you know, then um uh has an impact. How does uh Calgary Housing deal with that? Is there a plan in place? And has that plan been tested? So in terms of uh programs and how folks are brought in uh to the systems, uh we follow uh legislative requirements and we are auditing that process on a fairly regular basis. We have just completed our our audit uh last year in terms of our existing systems, and if there are any deficiency, we're able to fix those on a uh again very expedited basis. The the communications to um to folks is having clear communication not only on our website but also on our postings. So for our um near market as well as affordable homes, those are posted on uh rent faster. So the the clarity of how one gets into the program is uh very explicitly spelled out. There's no ambiguity. So in terms of uh circumstances, and I I'm I'm trying to rack my brain in terms of uh instances where that has occurred where there has been a misallocation, and I can't think of anything at this moment uh of housing to folks. Um it will be very much an immediate evaluation of how we uh how we evaluated uh their application uh before entering to the housing program with Calgary Housing. Sure. And thank you so much for that comment. And maybe just a um a value add or a suggestion that while uh something hasn't happened, it's just important to always have you know a crisis communication plan, an incident response plan, just proactively thinking about that and and formulating that and testing that should something happen. So I'm just putting that out there as uh you know uh um uh just a value add uh. That's something that you may want to consider. Appreciate it. Sure. Then the other question, and it's largely been covered, but I uh it and this is around the expired uh operating agreement, right? With the with the province. I just want to uh maybe gain a sense there. And as I said, it's been covered in the other questions. Um, but I want to understand you know, what uncertainty uh does this create? So is it you know around uh you know asset funding, uh uh maintenance or or or What exactly is that uncertainty now that that agreement has expired? So with regards to the operating agreement with the province specifically, it it is uh very much the the the funding of the of the assets and our operations to to manage them on the on the province's behalf. Um the again I I want to um perhaps just make the distinction that for the provincial properties we are the property managers. So in the circumstances, if the funding doesn't come through, there's uh there's uh the ability for Calgary Housing essentially to hand that back to the to the province should that occur. That has not occurred, they have provided the necessary funding on a continuum basis. So it's a risk that we're monitoring. Uh but I think in terms of the actual uh activities that the province has done, they have not um moved away from the from the actual operating agreement. Okay, got you. All right. And maybe just one more question. And uh it's it's more around the the technology and and and cyber risk, right? So as I understand, that risk is um Or not that area, I would say, Calgary Housing leans into the city systems, right? So maybe if you can give me a sense of how does the board actually obtain that assurance that, you know, around the cyber, the privacy, the disaster recovery, how is that being uh sort of uh actively tested and managed between the city and Calgary Housing? You know, that that's a great question. We we do rely on the processes and policies in place with regards to the city system. Um, but it has come up at recent uh at recent board conversations around what are those um how are those policies monitored and what kind of reporting should the board receive to ensure that uh the risks are mitigated and uh and basically that whoever is supposed to be maintaining all of that is in fact doing that, and if there is an issue that it's being communicated to the board. That's just one of many of city policies that Calgary Housing does share with the city and follows the city approach. So we are we are looking at having very uh distinctive reporting done on that in the future. It's sort of been more informal in the past, um, recognizing that uh there's a a great tie in with with the city's policies and those professionals that manage that area. Uh thank you so much for that feedback. Thank you, Chair. Thank you. Uh and I'll just sort of pick it up where you left off. On IT, so is there no practices within your organization that are not directed by the city? Because this is where we're seeing a breakdown. So you're still an organization that is has IT obligations, let's say, and policies. Are you just waiting for city to tell you or do you actually maintain good internet hygiene? I'm gonna say yes we do and I'm gonna let Bo tell you all about it. Yeah, so there there's a a split perhaps a split in the system is that our core IT system is through the City of Calgary. All um CH employees are City of Calgary employees and we're seconded to the organization. So all of our IT access, IT requirements, IT policy adherence is based on the City of Calgary's IT systems. That being said, we do have our own IT systems for our enterprise system, the YARDI system, which is how we track our financials as well as track our residents interactions. Those are separated, but for that implementation, we uh similarly follow city policies for you know the privacy impact assessment, threat assessments before implementing that process. So it is a hybrid approach in terms of how we approach the cybersecurity, but we try to lean on the city's best practices because I do believe the city has a very robust system in place for their IT setup, and we try to mirror it as best as possible. Great. So now I'm gonna wanna go into that system you operate. So does that system hold how many uh people are occupying a suite? So when you do how frequently do you audit for change of family structure? So if you have a three bedroom rented to uh a mother and kid and and they've been there long enough for the kids to go off to university, do you re sh re move them around so that you're not having a three bedroom unit going to a single person? Yeah, so we do um the the check-in uh with our residents on an annual basis. That's how our our reference checks. Um and if it's uh the opportunity for under house or over house individuals for them to be able to move to another unit, um we we work with them to be able to move them. Sometimes the the community is is such that there isn't another available unit. So we don't want to displace someone artificially just because they've changed their family composition. But uh if if there's opportunity in terms of availability, we absolutely uh help people move to the appropriate housing. Okay, and that's an an interesting answer because in the past I've had answers where we've had families with children in school and they've been forced to move to other segments of the city. So or uh and and so s so how do you balance that? When I think we would prioritize kids just moving suites and staying within your your business model, uh but moving them to from the northwest to the southwest is not good for students. And I've heard of stories of that. Like Yeah, I agree. That's that's not good practice. I think it depends on the specific circumstance. So for families that we move, uh, if there is a movement, we usually work with them on the communities that they would like to move to. It's not where um we any available uh units that we just move them. It is at their um at their option. Unless the the asset is uh being uh Reaching the economic service life and we're no longer operating that building. So Bridge Line Towers would have been a prime example where we're no longer operating that building. We're vacating it to redevelop it. And as such, we need to move you to another location. And the only available unit may be somewhere in a different quadrant of the city for the family size that you have. So those are unfortunate circumstances, but in those circumstances, we prioritize keeping them housed rather than having to them to move to an area where they can be precariously housed. Yeah, it it it's not always working out that way. So that that's where it ends up in Councillor's inbox. Um another question I have is for your ri risk. So you mentioned the board wanted to be more of a developer. uh rather than an operator at times or that pressure to develop over operations. How are you balancing that that risk? Because you also are risking your finances with development in today's markets. Um I wouldn't say the board wants to be more of a developer than an operator. I would suggest both. Um and one doesn't um currently are are operating uh Performance is uh is very good and we monitor that to make sure it stays that way. How we set up our new developments is each building and facility is standalone. So we don't leverage existing operations to support new operations at this time. And so each one stands on its own, and so we monitor all of those financial components to make sure that there's no threat to existing operations. And again, it's why having less debt and more investment in those properties allows us to do a better job at that. Yeah. Awesome. And then that takes me to the comment earlier about uh using to the end of life uh like extracting 100% of the value of the asset. Um Do you not see a risk in that when that also impacts your reputation of complaints about the suites not being to a standard that that they would challenge the certification on health and safety? Yeah, so we would uh always respond to any um requests that things are not meeting the minimum health and safety standards. That's the absolutely uh a top priority for our asset management teams. And regardless of uh a building reaching the end of economic service life, we would never sacrifice the minimum health and safety standards of the units. So in those circumstances, absolutely just literally call us, we will go out and and fix it. Um that's not uh never a a criteria for for us to be able to run a building, run a building to the ground per se. It's more of to get to the point where it is uh viable for us to move residents to a different location and vacate the building at all at once as a as a quick uh vacation. Okay. And then over the years we've talked about your maintenance team and how they actually respond to fixing it. Uh you were gonna c can you describe what changes you have made since past audit presentations on how you are actually maintaining suites and the qualifications of the individuals doing it? It was a lot of cont contracting out rather than having in-house expertise as a model, and where are you at today with that? Yeah, so for us it is still a blended approach just because we don't want to have the insourcing of all the expertise in-house and then not be able to respond quickly to uh various fluctuations in the vacancies. So we still have insourcing in of individuals that work for Calgary Housing that's part of our you know core maintenance teams, the the plumbers, electricians, mechanical maintenance workers, as well as building maintenance workers. But we also have recurring contracts with uh reputable contractors that are evaluated through a public procurement process for recurring contracts that does some of the work. So it is a balancing act in that uh sense. We work to find the again the best value for money in terms of what makes sense for specific units that require substantial renovations. We usually contract out because it's easier for a single contractor to go and procure that that responsibility for the unit. Uh for more routine maintenance move outs, uh, so you know, some uh we need to fix some electrical plugs, we need to replace the toilets, those are internalized for our uh our existing staff to be able to do that. And again, it's a matter of uh trying to find the best value for money for the those user turnarounds. Great. Councillor Clark mentioned about counselors being guests, but I don't think we're really seeing your schedule of when your meetings are occurring as counselors that are not on the board. So if that is an option, is there a way to share with counsel when your meetings actually are? Because we're flying blind. Yeah, absolutely. We schedule those meetings months and months in advance. We'd be happy to share that schedule with you. Awesome, great. And that's my questions for today. I'll hand it over to public member McDonald. Thank you very much. Um I'm relatively new to this, so my question's probably um a newbie question, but that's okay. I'll ask it anyways. It's mostly from my understanding. Um and it points a little bit to I think uh whether it's a push or pull model when it comes to how you price things. So when I when I see a number, you know, 37% below market, is that is there are there targets within your portfolio that you're trying to hit in terms of affordability, or is it more sort of supply driven in terms of you've got a mixed housing opportunity and because of the grant and the debt structure you can charge only 15% under and how do you sort of make those decisions and balance that with how much you need to actually charge to make enough to fill your reserves. So I'm just trying to get a sense of of how that structure works and how that strategically impacts some of your operating decisions. Yeah, the short answer is yes, all of the above. It really depends on the property. As Anna mentioned, we try as best as we can to make the individual buildings, especially new builds, to be self-sufficient on their own. And with those, it is very dependent on the amount of grant funding that we have. The operating requirements from, for example, the provincial grant funding has specific operating requirements on the number of units and the percentage, it has to be below in order to meet the affordability targets. So for those, that's the minimums, and we try to exceed those wherever possible by uh trying to find additional leverage or low and low-cost loans to be able to make those work. For existing assets that have been fully paid off, for example, and we're in a community that uh is in dire need of affordable housing, we price it based on the uh the affordability of the of the area. And then there are the other areas where it is um less so, so we price it uh more as competit competition with the market. So it's very, very uh area building property specific, and we have uh a team that's uh we call it the portfolio real estate management team that uh takes care of that. Okay so they they sort of balance that that critical need that you guys fill versus the the you know ability to actually offer a certain level of discount. Okay. No, I appreciate that. Thank you. Okay, I'm not seeing it. No? Okay. All right. Uh with that, uh, can I ask Councillor Clark to move the item? Alright. Yeah. Alright. Uh Eastcribe to vote, please. Eastcribe still thinking today. Public Member Niker, your vote, please. Yes. Thank you. Chair, all the votes are in. Please display the vote. Motion is carried 70. Thank you for coming down to City Hall and to visit Audit. This takes us to our next item, 7.3, South Fish Creek Recreation Association 2025 Annual Report. Come on down. Alright. When you're ready, you may begin your presentation. Morning members of the audit committee. Thank you for the opportunity to present today. We're here as excitement. We're here to share our passion for the community and the facility itself. My name is Craig McGeechee. I'm the general manager of Cardell Rec, Southfish Creek. The naming is Cardell Wreck. Joining me is Shirley Fries. She's our controller, and Lynn Joby is our president. Before I took the job, didn't this facility is much more than four sheets of ice. We're going to try to show you what we do in South Fish Creek and just express that it's more than just four sheets of ice today. Today we're going to provide an overview of some governance framework, our financial stewardship, our sorry, you can change the slide. But financial stewardship, some legislative compliance, and how we impact the surrounding communities and partnering supported organizations. We will be sharing these elements, work together to support the responsibility management of long term sustainability, an important asset in South Calgary. Please change the slide. I'll be beginning with providing an overview of the Southfish Creek's governance framework. I'll talk to some photos that you see throughout the presentation. That is a uh annual skate with Santa that it has escalated from one sheet of ice to two and three sheets of ice. So it's a free opportunity for the local community to come here and Santa does show up. So please change the slide. Our governance structure reflects the collaboration and nature of the organization by bringing together community and support representatives with independent director at large. The balanced model ensures diversity but representation. Strategic decision making, maintain a strong accountability and oversight, and direct connection with the community we serve. Please change the slide. As you can see, you know, effective governance depends on clear separation between strategic oversight and operation management. The direction is provided by the board with oversight, supported by its committees, while management is responsible for implementing the direction and overseeing the day to day operations and the capital plan of the organization. These divisions ensure strong accountability, support effective decision making, and allow both board and management to focus on the prospective responsibilities by working toward a long term success of the organization. Please change the slide. Together those four pillars that you see, what enables us to inform decision making, strengthen organizational o oversight, and align with city expectations for the responsible management of the important public ac asset. Please change the slide. I'll now turn to this but self-suring financial position and strategies to support the long-term financial. That's another picture. We're very strong at our staff culture. That was an internal session we did with an instructor from Mount Royal. That those three sessions that we did has paid dividends with our staff to show the support. Please supply or please change the slide. As you can see, our financial results reflect a prudent financial management and the diversity but operating model. Our broad mix of revenue sources strengthened long term. But financial stability, resilient revenue model, and provides a flexibility to support future operation and capital priorities. Most importantly, the association received an unqualified audit opinion with no significant deficiencies identified, providing independent assurance of all financial reporting and governance practices. Please change the slide. A strong balance sheet provides the flexibility to respond to future capital requirements while adopting to evolve operating needs. Maintaining appropriate reserves allows us to plan proactively, support long-term financial stability, and responsibly stewardship for the important public access asset. Please change the slide. As you can see, we have to find other resources. Our financial strength is it is diverse of revenue streams. Beyond our core operations, we actively pursue external funding opportunities and strategic partnerships that support capital investment, generate additional revenues, and strengthen our financial flexibility. This diverse approach strengthens our long-term financial stability and enhances our ability to reinvest in our community. And again, that's another slide there of uh Istrosurfacer. That was oh. Um we did get a grant for this, uh but Istrosurfacer, if um our chairing committee does not understand, those are almost $200,000 pieces of machinery. So those are expensive. Next slide, please. Capital planning is a key priority and essential part of ensuring long-term stability of the facility. Instead of reacting, we take a proactive approach. We follow a structured life cycle but replacement strategy and discipline preventative maintenance program that helps extend the life of our assets, improve operational reliability, and reduce long term replacement costs. As you can see, the projects highlight and reflect an ongoing commitment to responsible asset management and long term sustainability. This year we have a bill and condition report being scheduled. So our last one was 2022. We have another one coming up this year. So that's a four-year mark. Please slide. Risk management. The next session focused on an approach and enterprise risk management and legislative compliance. Another photo there. We work very closely with the City Calgary Police, the community liaison officers, and they frequently host their coffees with police in our facilities, and that's one of our rooms there. So that was a couple months ago, and it was well attended. Please, next slide. Enterprise risk management is enables but throughout an organization and supports proactive decision making across all levels of the organization from day-to-day operations through board oversight. By taking the structure approach of risk, we can anticipate challenges, prioritize mitigation strategies, and make information decisions that support the long term sustainability of the organization. Ultimately, the proactive approach enhances organizational resiliency and helps protect both association and city investment. You'll notice in your package of 3.1, there's some information about the risk assessment areas that we've gone through the organization. Next uh slide, please. Supporting our enterprise risk management framework is a formal legislative compliance program that helps us ensure we meet all our regulatory obligations and adapt to legislative change. Rather than simply react to new requirements, we proactively monitor and assess legislative developments and strengthen internal controls, reducing compliance risk, and reinforces our commitment to accountability and a good governance. Also to note in your package 3.2, there is information about this. In the picture, another picture there is we we partnered with uh a group called Annex, and youth designed that artwork, and now it does reside in the Commons area of Southfish Creek. Please change slide. Finally, I'd like to highlight how strong governance and our financial stewardship translates into measurable community impact and public value. Please, next slide. As you can see there, while ICE rentals remain an important source of revenue, our financial model is supported by a broad mix of programs, facility rentals, tenant leases, grants, partnership, and other but funding sources. This diverse revenue base strengthens financial resilience, maximizes facility utilization, and supports our ability to deliver a wide range of recreation and community services to the residents of South Calgary. Next slide, please. As you can see from our our impact, we provide opportunity well beyond operating a record facility, a force use device I've but I've mentioned. We provide programs and services that support the residents at every stage of their life. While working with community and social partners, we are reducing barriers and enabling partnership and create opportunity for people to connect and belong. This broad community focus reflects our community, enhancing health well being and social inclusion across Calgary. One example there, that's the campfire program that has been we're going into our third year. 200 youth attend on a monthly basis. We host six to eight a year, depending on the weather. And um yes, that's a physical campfire. People sometimes don't get to experience a physical campfire, and that's out back, and that's a partnership with all of our partners that uh participate, which is the Calgary Library, the YMCA, and the Catholic School Board, and us. Um this date came from a local um one of our communities did did um offered this program and then we brought it over to us. And I think Lynn Joby was our president, started this program in her community and brought it over to us, so we appreciate that. Next slide, please. The utilization level showed that that this slide reflects the strong demand for our programs facilities and our commitment to maximize the value of the important asset. Through efficiency scheduling, expanding program opportunities, and strategic partnerships such as Calgary or Tours in Calgary will continue to but increase and attract major events. And we've also just recently won. Uh the 2027 28 National Regette Championships, and that's in partnership with the seven chiefs. So we both collaborated together and they needed a six sheet of ice. I sell our facilities equal to six sheets with seven chiefs. So we won that event mainly on we were able to sell six sheets of ice in two different locations. So that was a good collaboration with Kyrie Tours on that. Um and one thing that I'm most proud of there, if you look up there, non-prime ice scheduled between mid-August to April is 93%. That is unheard of in even Western Canada. I've been in a rink since 1990. One of the key successes is we have 13 plus 55 teams play there, and there are there's a couple teams over 80 there. So um, and that's a 12 that we host about 12,000 hours of ice per year. Next slide, please. The impact of Southfish Creek extends beyond the operations, as I've mentioned, through accessibility programming, computers. But community partnerships and exclusive paces. We help strengthen the community connection, promote healthy lifestyles, and support an overall well-being for all the residents of South Calgary. The outcomes align closely with the City of Calgary strategic priorities and demonstrate the broader public value created. Regional management, an important community asset. I've said that a few times. In closing, South Hist Creek is committed to the responsibility of being a steward of the of the city's asset and delivering meaningful value to our communities. Together, the principles ensure a long term sustainability of organizations while protecting the investment and maximizing the benefits. As we have presented, this is a vital part of the community of Selfish Creek. As I mentioned, I've been in the arenas since 1990. I started in the city of Calgary in 1990, and to this day I'm very proud of this facility. I've been around to many arrangements in Western Canada and North America, and we continue to get compliments of our facility, what we offer, how clean it is, and the change that we are seeing. So thank you. Any questions? Another fun part. Uh Councillor Panzadopoulos. Thank you so much for the presentation. Uh game plan. Last council approved it. I think this council hopefully will double down and and make major investments and a core part of that is partners and and investing not just city owned assets, well maybe city owned assets, but working and maybe just you know help audit committee and the rest of council Learnings, you know, what mistakes were made in that having partners fund it? What can we learn as we go into game plan? Because we're gonna make a pretty substantial investment and just love to hear uh if you could do it again. Uh we have that chance, uh, what works and what doesn't. Wow, that's a good one off the start. Um Yeah, game plan I've been involved with a little bit. You know, I'm invited to meetings. Um what I'm hearing through the city of Calgary and out of partnerships, we have a strong partnership with with all the Selfish Creek partners of the YMCA, the Calgary Library, the school on us. We've been told that we're kind of the image of what um a regional recs need to be. Um we have a strong partnership with all of us. What can we learn from it? Wow. Um What we're finding now is the cost of running facilities is who would have thought of this twenty-five years ago that utilities would be close to eight hundred thousand dollars? Just for us, not the Southfish Creek as a whole. So the understanding of the scope and the cost and the burden that is now going to be presented to the users, that's where this is going. And I got a I got a stat here. From 2020 to today, our partner ice rental went from 203, now we're at 290 per hour. That's almost a 30% increase in less than five years. And that directly goes to the users. So our rates are not the highest in the Calgary, but in terms of recreation facilities, to answer your question a little bit, is it's getting to be expensive to run these things. And we are, I've dropped 9,000 hours in operating since 2019. We're at the sweet spot of ours. We have adjusted as most or as much as we can in terms of operating cost. I think we've kept our salary and wages very comparable for five years ago now. So we've dropped a lot. So the operating of these facilities are very expensive. And that's I'll I'll just add to that that we're in a bit of a squeeze position. Um there are there are some facilities in the city that have an opportunity to raise a lot of revenue. Oh sorry. I got it. Um okay, so we're we're in a bit of a squeeze because there are some facilities in the city that have the opportunity to raise a lot of revenue through membership. We're not that kind of facility. We have four sheets of ice, we have a large gym space and a lot of meeting rooms. We don't have a membership fee. And um so we're very sensitive that as Craig mentioned, our our rental fees for our spaces are creeping up, up, up. It's it's tough for families. We recognize that. We're trying to be innovative about uh subsidizing um um families to to afford programs and whatnot, but it is a concern. And um uh you may or may not know this, we do receive zero Zero dollars from the city. So as our facility ages, we're over well over 20 years now, and we're looking forward to some super significant uh investments coming up with uh a roof and by 2036 we'll be doing brine lines and and concrete pads. We're talking millions and millions of dollars. It's uh it's a lot. And so how do we do all that and still keep our fees low so that families can? Bring their kids to learn how to play hockey. Is it the diversification of the income stream? I think you showed that slide, 55% rental. How critical has that been your journey over the 20 years? Uh did did it start out at 90% and it sort of moved? I know there's grants and things, but just how how again, as we're planning the next four sheets of ice in a new community, you need to make sure there's room for the 45%. So it's a very important question. Um we get a lot of tours from we just had a tour from Chesterbear. Is there potentially I'm gonna have a tour of Carrier Flames coming by uh next week. ICE itself does not make you viable. You gotta have commercial, you gotta have programs, you gotta have meeting spaces, you gotta be creative. We are potentially signing two two new more um leases coming up in the next few weeks. One is a classroom setting for a hockey program. They're gonna have classes there. So they want to adapt a five to ten year plan to host classes there and sport. So um being creative. Um these facilities cannot be viable just with four sheets of ice. And we have commercials and and so in development of facilities, I'd be very careful of um being so but very diverse. Um we host three to four religious groups per week, faith groups, um, church groups, um uh but Ramadan, there's a group that shows up every year, and and we have to adapt for Ramadan, we store their stuff, and and there's certain things we got to do for them. And so we have a lot of religious, you know, you know, faith groups that walk through there, at least three to four. And they're constant users of it. It's quite enjoyable on Sundays when you're there they play some good music. It it's really neat. And it's it's very neat to walk by the the hallway and you got your your Triple A hockey and the buffs and then you got this faith group down the hallway playing the music. So it's At being very diverse in your facilities. I appreciate it as a hockey dad. I think I've helped your tenants with Mr. Pretzel uh you know I I bet you I've paid half their half their rent. Uh yeah, maybe that but partnership, uh, you know, when we go there, you've got uh a high school, um a YMCA, I believe, uh uh library and of course ice and and pub and all those stuff. So maybe just how how does that work? Um, you know, we're looking to build some of those and even in my ward, you know, that clos cross collaboration. How important was it to have the several anchor tenants? Does it yeah, it doesn't really work, or just just to begin an honest having the library just to the north, against to the rink, and just maybe walk through that as again context of game plan, but also as we look to cross pollinate uh city services. If you ever get to that stage, I'd be glad to be involved in that process. But for us, that space that you stand in in the hallways that you walk from A to B, that's called the common space. It's the Alliance. It's the Alliance is the Catholic School Board, the YMCA, the public library, and us. We sit on this, we manage that space. When that building was designed, it was a collaborative effort to make it a user-friendly for everybody. If you come through our facility in the arena in the daytime, multiple high school students hanging out there, studying, using our Wi-Fi. When I first started in 2020, it was a little, but it is very nice to see them there. 99.9 to the percent, they're there to study, they're to hang. They just want to get away from school and they don't want to walk outside in minus 30. So it's it's a very good partnership. I would suggest this model to be done very similar with a few tweaks in it. They the commons also uh manage the uh outside envelope That's right. of the That's right. of the buildings as well. So each each each partner has a responsibility. So for example, this school has the the janitorial contract. We manage it day to day. The library has the the contract of the snow removal and the landscaping. The YMCA, because they're building maintenance, they do the day to day building maintenance and capital. We run the financial systems in that. So it's a it's a model that I would suggest. Great. No, thanks so much for that clarity context and so important as we go into our four year budget cycle just to know and hear success stories. Yeah. And 'cause we also have to hear the bad ones, but know what works and what doesn't and then continue. No, I think the city did a very good job on this this agreement. Thank you, Madam Chair. Thank you. Public member Kim. Great. Thank you for your report. Um a few questions. Um first, I noted that you have a term loan that's coming due February. Oh, that's been sorry, I might have had the wrong date. Yeah, February, that's all been repaid. through I presume your GIC and other funds on on hand? Yeah, we actually We still do have the term loan. I there was a strategic decision by the board a number of years ago to begin to reduce the the actual amount of the term loan to reduce the interest that we were incurring. And so a large sum of money went to pay it down significantly. But we were still required by the bank to have uh A collateral GIC on the side for the term. This year we had some discussions with the bank and convinced them to allow us to cash in the GIC and to to not have a collateral requirement and to pay down the loan further. And this has resulted in even more uh savings on our interest expenses. Great, thank you. I noted your the bench restaurant and there have been some challenges with that operation in terms of the financial results. I can see that. So what are your plans perhaps to turn it around or what are your your plans to continue with this venture? Go ahead. Um there have been some challenges with the startup of of the bench, which is uh a full service restaurant um of over what how many seats? Over three hundred almost three hundred. Seats. So it's a it's a large space. Um before I answer your question, I'm just gonna say that it's been uh instrumental in bringing some of the major tournaments to our facility. Um we're able to offer that uh That amenity and bigger tournaments, bigger uh functions really look to that. So that's part of turning it around. In the last year, it has turned around. So even though the economy has been difficult and other restaurants and businesses of all kinds have met challenges, we're actually our revenues are increasing there. We've really made a turnaround, and we expect that with continued diligence and strong management it will continue to build. It was originally set up with the vision of it being a social enterprise to give back to the facility and to support specifically youth programming. We hope that eventually it will get to that point. Great, thank you. And uh I I guess uh just with the with us being the audit committee, we need to think about financials and particularly internal controls. So when I think about an organization of this size, uh my concern would go to segregation of duties, misappropriation of assets, cash, things like that. So can you provide us an overview of your internal controls on how you manage the segregation of duties and the cash? Absolutely. In fact, that's that is a challenge. I mean, we're a very small not-for-profit and our accounting team consists of three people. And so segregation can be quite a challenge. But you know, I've done a a very robust review of the internal controls that we have in place, and we've made a few adjustments here and there to ensure that there is the necessary segregation. And I think that Uh with the issuance, I mean in fact we've revised 15 different procedures and forms to ensure that those segregation and internal controls are embedded into our our day to day activities. And so I think with with all of these fundamental changes, I I would I'd like to say that we have a very strong internal control system now that really addresses any concerns that our auditors could could have. Great, thank you. Those are my questions. Thank you. I'm just trying I'm turning mics off for you guys. Um I just have one question. You're in such a complicated joint use site. What what is the backup plan if one isn't actually financed? Is there a risk analysis on that? Like I know you got some strong partners, but not all of them are guaranteed to keep that as part of their operating model. Yeah. I'd like to say that it seems I would hope on an if we were to do a heat map, I would hope that it would be highly unlikely that the school or the Calgary Public Library would would become financially distressed. Um with regards to the Y, clearly they're a very long long-standing, you know, sizable organization, probably much significantly bigger than SFCRA for sure. So I I'd say that that the likelihood of there being an issue there would be low. If, however, for some reason one of those organizations did decide to leave the the common enterprise, then I think clearly we would have to look for another partnership. Uh in the case of the Y, it could be also beneficial for SFCRA because then we would be able to seek those membership, ongoing membership uh revenues that could be generated from that space. So I think that there's some risks but also some some opportunities as well. Yeah. Just you know, um Lynn and I sit on the Alliance Committee, which meets quarterly, which is all the partners. We talk about hopefully not those things, but more of a higher level strategic items and I'm more of a secretary there. And then monthly, we meet with the operating committees of each um organization about day-to-day stuff that goes on there. So um I would hope that we're connected at the at those two levels to get that news before it hits. Um but even in the meetings with the YMCA recently, they said their membership is ballooned recently. So um they're very happy. They're actually going through a big renovation right now, and I'm sure that's a multi million dollar renovation there. So I would hope that we're gonna be great partners in the future. Yeah. No, it's just because like schools have shut down in the established area. So you have to always plan for that in the future. Yeah. Enrollment's a fun one. Right. Yeah. And there's no chance of You're suburban like mine. Yeah. All good. Public member McDonald. Uh thank you. Just a really quick question, um, just so I understand sort of the structure of the bench. Is that a wholly owned subsidiary? Is it um so it's so it is a wholly owned sub? Okay, because I was I was concerned the the old banker in me looks at the unsecured loan and says, Okay, so there's an unsecured loan to somebody else outside the organization, which could have been a risk. Okay. So I appreciate that clarification. Yeah, and there's a remainder of three hundred and how much left of that loan? Oh the that that would be our term loan that you're referring to. Yeah. And yeah. Yeah, the 2.5 is is what the bench owes to us. Right. Okay. Sorry. That's right. Yeah. Quick question. Okay, no, I appreciate that it is a wholly owned sub, so there's there's contained risk there. Appreciate it. And just as an as an added comment to that, the we recently did rewrite the term loan uh because we had there was a strategic decision to to ensure that the bench had stabilized. I mean it is in the hospitality industry, which takes a bit of time to kind of get its footing and and for people to start using the facility more. That has happened now, and so we are actually experiencing uh positive Ibida at this point. And so we're actually very pleased with how it's been progressing and hoping that the the the strategic intent of it becoming a social enterprise and and becoming a funding partner of SFCRA is is now turning around. Okay, that's good. It's a good turning uh a risk into a good news story. Yes, that's right. Appreciate it. Great. Thank you. Councillor Jameson, would you like to move? Yes. Awesome. Thank you. All right. Jameson will move and when clerks are ready, you scribe to vote. Public Member Niker, your vote, please. Yes. Thank you. Chair, all the votes are in. Display the vote. Motion is carried unanimously, 7-0. Thank you very much for your presentation and great work with recreation. It's a challenging endeavor. It's great. Thank you. Thank you. And now can we please get Civic Partners? 2025 Civic Partner Audit Report. When you are ready, please begin. Thank you. Good morning, and thank you for the opportunity to present the Civic Partner Audit Report. My name's Kim Mustard, and I'm the Acting Manager of the Major Partners Division and the Partnerships Business Unit. Joining me today to present is Kathy Sang, team lead in Major Partners. And in the gallery, we're also joined by Kay Choi, Director of Partnerships, GMKD Black, and staff from Major Partners, Community Partners, and Finance. Before the presentation, we're requesting clerks to redistribute two attachments Confidential Attachment 4 and 11. The revised attachments have non-material clerical changes. Next slide, please. The slide before you presents this report's recommendations. Next slide, please. The Civic Partner Audit Report presents the results of the city's annual financial review that rates the city's exposure to risk related to each civic partner. This report helps council and administration understand mitigation for those rated as elevated or high risk, and it helps monitor trends over time to inform funding and other decisions. Risk ratings for each civic partner are based on their audited financial statements from the most recent financial year end. The ratings in this report are based on 2025 audited financials. This report is part of a larger accountability framework that also includes a Civic Partner Annual Report presented to the Community Development Committee on May 21st. Together, these two reports provide a full overview of civic partner governance, operations, and financial health. The category of civic partners is defined in the Investing and Partnerships policy, and the city makes its most significant investments in these organizations. The policy encourages leading practices related to governance, risk management, and accountability. Next slide, please. Risk ratings for each civic partner are included in Confidential Attachment 4. The financial review process looks at clearly established criteria and ratios to evaluate cash on hand, working capital versus cash expenses, deficits, reserve levels, among other items. Through the process, organizations can be rated as low, elevated, or high. The same tool is used to review community associations and social recreation groups with a lease or license of occupation. Overall, based on 2025 audited financials, 23 civic partners were rated low risk. Three civic partners and two wholly owned subsidiaries of civic partners were rated elevated risk. And one civic partner and one wholly owned subsidiary of a civic partner were rated high risk. If the committee has specific questions about an organization's rating, we'd be happy to address them in camera, given the confidential nature of the information. As part of the process, administration works closely with partners rated as elevated and high risk to understand mitigation strategies and support as needed. I'll now like to pass the presentation to Kathy Sang, a team lead with major partners, who will provide a summary of the governance and risk management information in the report. Next slide, please. Last year, Council approved a streamlined approach to reporting. Civic partners invited to present directly to audit committee within the given year no longer need to complete the Civic Partner Audit Report template for that specific year. In 2026, four civic partners will present to audit committee as part of the committee's work plan. These civic partners are still required to submit their audited financials for this report and have received a risk rating. As part of the accountability process for civic partners, each organization submits their information about their governance and risk management practices through a template. Administration then prepares a covering snapshot with key highlights. This information is included as confidential attachments to the report. In 2025, financial risk was still the most often reported by partners, just as it was in 2024. More partners also reported cybersecurity risk, and employee recruitment and retention remained the third most reported risk. Overall, partners continue to refine their approaches to risk management and continue to evolve and adapt more sophisticated tools that suit their organization's operations. They are also engaging all levels of their organizations in risk management with leadership coming from their boards. Over time, civic partners need to be flexible and adapt to changing financial conditions. For example, by continuing to diversify revenue streams and manage increasing risks related to technology. Next slide, please. This slide presents our report's recommendations. Thank you for the opportunity to present, and we are happy to answer any questions the committee may have or together with the team provide more information about specific risk ratings in CAMRA. Does anyone have any questions? Civic partners. Okay. Those are confidential. Okay, I'll take them offline because they're confidential questions. And since no one else on committee has questions, we will know about that. It's tied more to that. Can I get a mover for this report, please? Councillor Cl Clerk. Great. And you scribe to vote. Public Member Niker, your vote, please. Yes, please. Thank you. Chair, all the votes are in. Please suspend the vote. Motion is carried 7 0. Thank you very much for your presentation. Good lucky today. are added to it. True. Now everyone back ready to go. We're gonna s head into external auditor management letter. All right. Whenever you're ready, begin. Okay. I'm the only one here. Is it okay if I just stay here? Is that okay? Okay, good. They all abandoned me. So good morning. Okay, so following an annual audit, should there be any recommendations related to the business issues, potential efficiencies, or enhancements to processes or internal controls, uh, we would raise some of these as part of our formal letter of recommendations. So following the 2025 audit, we have one recommendation related to timely communication of matters impacting the consolidated financial statements in the area of investments, uh, along with administration's response on how they will address this recommendation. We will follow up with administration during the 2026 audit on the status of addressing this recommendation. And we normally would expect that any recommendations would be uh would be addressed within the next audit cycle, with the exception of certain recommendations if uh they allow for a longer timeline in terms of addressing the recommendation itself. In the letter that we have provided, uh we have also carried forward prior recommendations and administration's response on the status of addressing the recommendations and Deloitte's responses as well. With that, I will take any questions from the committee, should there be any. Thank you. Does anyone have questions or want to go in camera for No? Alright, who wants to move it? Public member McDonald. We'll move it. E scribe when you're ready. Councillor Pantasopoulos, your vote, please. Yes. Thank you. Chair, all the votes are in. Please display the votes. Motion is carried unanimously. Thank you very much. Now we will have to go in camera for the next portion of our agenda. Uh Councillor Clark, would you like to move to on camera? And Clerks, we're you got your mover, but take your time. We we're ready when you are. Can't keep up with this. Yeah. Yeah, we'll leave once we vote. We have one there, yeah. Apologies, Chair. Just because we're bumping up relatively close to the lunch break, we're going to put a um and further pursue into section seven of procedure bylaw 42M 2025. Committee suspend section 82B I of the procedure bylaw to forego the lunch recess to complete the remainder of the agenda. Are you okay with Perfect. All right. And then Uh sorry, who moved the uh the motion? Okay, Councillor Clark? Okay. or no, did I put who was it? Clerk Clerk? Okay, just make it sure. Okay, thank you. Councillor Jameson, your vote, please. Yes. Thank you. And Public Member McDonald, your vote, please. Thank you. All the votes are in. Please display the vote. Motion is carried unanimously. Please log off of the current teams and you will receive the link for closed in your inbox. The audit committee will be resuming in public meeting shortly. Please make your way back to the Engineering Traditions Committee room. Thank you. Five minutes, guys. Thank you, Chair. To confirm quorum, Councillor Jameson. Councillor Clark? Councillor Pantozopoulos. Public Member Kim. Public Member McDonald. There you go. Public Member Niker. Yeah. And Councillor Yan S. Here. Thank you. We have quorum. Rise and report by Councillor Jameson. All in favor? Motion is carried unanimously. The next one we'll go to is 9.2.1 external auditor report moved by public member Kim. And E scribe when clerks are ready. Chair, all the votes are in. Please display the vote. Motion is carried unanimously. That takes us to item 9.2.4, city auditor verbal, moved by public member McDonald. And e scribe when clerks are ready. Councillor Clark, your vote, please. Thank you. All the votes are in. Please display the vote. Motion is carried unanimously. Uh all right, that takes us to 10.1 a briefing. So I hope everyone has read it and to public. We have a briefing report to uh read. And now I will seek in it. Someone to adjourn. Public member McDonald smiled first. Alright. There you go. Uh we are adjourned. 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