Item - 2012.CC26.8

Tracking Status

  • City Council adopted this item on October 2, 2012 with amendments.

CC26.8 - Proposed Sale of Enwave Energy Corporation

Decision Type:
ACTION
Status:
Amended
Wards:
All

City Council Decision

City Council on October 2, 3 and 4, 2012, adopted the following:

 

1.         Council adopt Recommendations 1 to 4 in Confidential Attachment 1 to the report (September 25, 2012) from the Deputy City Manager and Chief Financial Officer, entitled "Recommendations on the Proposed Sale of Enwave Energy Corporation".

 

2.         City Council refer the following Recommendation 5 contained in Confidential Attachment 1 to the report (September 25, 2012) from the Deputy City Manager and Chief Financial Officer, together with the following motions, to the Budget Committee for consideration:

 

5.         City Council direct that the proceeds (net of legal fees) from the sale of the City's stake in Enwave be deposited to the Capital Financing Reserve Fund (XR 1011) to offset future debt issuance.

 

Moved by Councillor Pam McConnell

That City Council direct that $50 million from the proceeds of the sale of Enwave be placed in the Toronto Community Housing Corporation Major Capital Account.

 

Moved by Councillor David Shiner

That City Council direct that $21.8 million of the proceeds from the sale of Enwave be used to repay the Water Capital Reserve Account to be used primarily for the basement flooding program.

 

Moved by Councillor Raymond Cho

That City Council direct that 50 percent of the proceeds from the sale of Enwave Energy Corporation to the Toronto Community Housing Corporation, specifically to the capital repair backlog.

 

Moved by Councillor Raymond Cho

That City Council direct that 25 percent of the proceeds from the sale of Enwave Energy Corporation to the Toronto Transit Commission (TTC), specifically for the purchase of TTC streetcars.

 

Moved by Councillor Raymond Cho

That City Council direct that 25 percent of the proceeds from the sale of Enwave Energy Corporation to Toronto Water, specifically to the Reserve Account.

 

3.         Council direct that Confidential Attachment 1 to the report (September 25, 2012) from the Deputy City Manager and Chief Financial Officer remain confidential in its entirety with the exception that:

 

a.         Recommendations 1, 4 and 5 of Confidential Attachment 1 to the report (September 25, 2012) from the Deputy City Manager and Chief Financial Officer be made public; and

 

             b.        Appendix A to Confidential Attachment 1 to the report (September 25, 2012) from the Deputy City Manager and Chief Financial Officer shall be released following completion of the transactions contemplated in Attachment 1.

 

The following confidential Recommendations 1 and 4 contained in Confidential Attachment 1 to the report (September 25, 2012) from the Deputy City Manager and Chief Financial Officer were adopted by City Council and are now public:

 

1.         City Council accept the recommendation of the Board of Directors of Enwave Energy Corporation ("Enwave") to accept the offer of 2343240 Ontario Inc. - a partnership sponsored by Brookfield Asset Management - to purchase the City's 2,422,193 common shares in the capital of Enwave and its unsecured subordinated loans to Enwave for an amount of $167,995,286 and to purchase BPC Penco Corporation's 3,210,810 Class A shares and its unsecured subordinated loans to Enwave for an amount of $222,691,426, subject to an adjustment depending on the working capital of Enwave at closing of the transaction.

 

4.         City Council thank the City's external appointees to the Board of Directors, Vitor Fonseca, and Chair Paul Brown, and the Mayor's designate Councillor Gary Crawford, for their exemplary service and particularly their dedication to the sale process and its positive outcome.

 

The balance of Confidential Attachment 1 to the report (September 25, 2012) from the Deputy City Manager and Chief Financial Officer remains confidential at this time in accordance with the provisions of the City of Toronto Act, 2006 as it pertains to the security of property belonging to the City or one of its corporations.  Appendix A to Confidential Attachment 1 to the report (September 25, 2012) from the Deputy City Manager and Chief Financial Officer will be made public following the completion of the transactions contemplated in Attachment 1.

City Council Decision Advice and Other Information

City Council recessed its public session and met as Committee of the Whole in closed session on October 2, 2012, and considered confidential information on this Item as relates to the security of the property belonging to the City or one of its corporations.

Confidential Attachment - The security of the property belonging to the City or one of its corporations

Background Information (City Council)

(September 25, 2012) Report from the Deputy City Manager and Chief Financial Officer on the Proposed Sale of Enwave Energy Corporation (CC26.8)
https://www.toronto.ca/legdocs/mmis/2012/cc/bgrd/backgroundfile-50564.pdf
Confidential Attachment 1 - Recommendations on the Proposed Sale of Enwave Energy Corporation
Confidential Appendix A to Confidential Attachment 1 - made public on July 11, 2019
https://www.toronto.ca/legdocs/mmis/2012/cc/bgrd/backgroundfile-135926.pdf

Motions (City Council)

Report of Committee of the Whole

October 2, 2012 - 11:45 a.m. - Speaker Nunziata advised that City Council had completed its closed session consideration of CC26.8 - Proposed Sale of Enwave No motions were moved during the closed session.


1 - Motion to Amend Item moved by Councillor Pam McConnell (Referred)

That City Council direct that $50 million from the proceeds of the sale of Enwave be placed in the Toronto Community Housing Corporation Major Capital Account.

 

Referred by motion 4 by Councillor Kelly.


2 - Motion to Amend Item moved by Councillor David Shiner (Referred)

That City Council direct that $21.8 million of the proceeds from the sale of Enwave be used to repay the Water Capital Reserve Account to be used primarily for the basement flooding program.

 

Referred by motion 4 by Councillor Kelly.


3a - Motion to Amend Item moved by Councillor Raymond Cho (Referred)

That City Council direct that 50 percent of the proceeds from the sale of Enwave Energy Corporation to the Toronto Community Housing Corporation, specifically to the capital repair backlog.

 

Referred by motion 4 by Councillor Kelly.


3b - Motion to Amend Item moved by Councillor Raymond Cho (Referred)

That City Council direct that 25 percent of the proceeds from the sale of Enwave Energy Corporation to the Toronto Transit Commission (TTC), specifically for the purchase of TTC streetcars.

 

Referred by motion 4 by Councillor Kelly.


3c - Motion to Amend Item moved by Councillor Raymond Cho (Referred)

That City Council direct that 25 percent of the proceeds from the sale of Enwave Energy Corporation to Toronto Water, specifically to the Reserve Account.

 

Referred by motion 4 by Councillor Kelly.


4 - Motion to Amend Item moved by Councillor Norman Kelly (Carried)

 That City Council refer Part 5 contained in Confidential Attachment 1 and any amendments moved to this point to the Budget Committee for consideration.

Vote (Amend Item) Oct-02-2012 4:15 PM

Result: Carried Majority Required - CC26.8 - Kelly - motion 4
Total members that voted Yes: 28 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Mike Del Grande, Frank Di Giorgio, Doug Ford, Rob Ford, Mark Grimes, Doug Holyday, Norman Kelly, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, Jaye Robinson, Karen Stintz, Michael Thompson
Total members that voted No: 16 Members that voted No are Shelley Carroll, Janet Davis, Glenn De Baeremaeker, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mike Layton, Chin Lee, Pam McConnell, Mary-Margaret McMahon, Gord Perks, Anthony Perruzza, David Shiner, Adam Vaughan, Kristyn Wong-Tam
Total members that were Absent: 1 Members that were absent are James Pasternak
Ruling by Speaker Frances Nunziata (Upheld)
Councillor Shiner requested the Speaker to take a separate vote on the referral of his motion 2. Speaker Nunziata ruled that the vote on the referral could not be split.
Challenged by Councillor David Shiner


5 - Motion to Amend Item (Additional) moved by Councillor Paula Fletcher (Out of Order)

That City Council direct the City Manager to report during the 2013 budget process on other one-time opportunities such as sales by Build Toronto that would be available for capital upgrades to TCHC.

Ruling by Speaker Frances Nunziata (Upheld)
Speaker Nunziata ruled motion 5 by Councillor Fletcher out of order as Build Toronto was not the subject of the matter before Council.
Challenged by Councillor Paula Fletcher


Motion to Adopt Item as Amended (Carried)

Vote (Adopt Item as Amended) Oct-02-2012 4:15 PM

Result: Carried Majority Required - CC26.8 - Adopt the Item as amended
Total members that voted Yes: 38 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, John Filion, Doug Ford, Rob Ford, Mary Fragedakis, Mark Grimes, Doug Holyday, Norman Kelly, Chin Lee, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, Gord Perks, Anthony Perruzza, Jaye Robinson, David Shiner, Karen Stintz, Michael Thompson, Adam Vaughan
Total members that voted No: 6 Members that voted No are Janet Davis, Sarah Doucette, Paula Fletcher, Mike Layton, Pam McConnell, Kristyn Wong-Tam
Total members that were Absent: 1 Members that were absent are James Pasternak

Motion to End Debate moved by Councillor Michael Thompson (Lost)

That in accordance with the provisions of Chapter 27, Council Procedures, City Council end the debate on Item CC26.8 and take the vote immediately.

Vote (End Debate) Oct-02-2012 4:02 PM

Result: Lost Two-Thirds Required - CC26.8 - Thompson - End debate
Total members that voted Yes: 22 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Shelley Carroll, Raymond Cho, Josh Colle, Vincent Crisanti, Janet Davis, Sarah Doucette, Paula Fletcher, Doug Ford, Mary Fragedakis, Gloria Lindsay Luby, Giorgio Mammoliti, Mary-Margaret McMahon, Denzil Minnan-Wong, Cesar Palacio, Gord Perks, Jaye Robinson, David Shiner, Michael Thompson, Adam Vaughan
Total members that voted No: 20 Members that voted No are Michelle Berardinetti, Gary Crawford, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, John Filion, Rob Ford, Mark Grimes, Doug Holyday, Norman Kelly, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Joe Mihevc, Peter Milczyn, Ron Moeser, Frances Nunziata (Chair), John Parker, Anthony Perruzza
Total members that were Absent: 3 Members that were absent are James Pasternak, Karen Stintz, Kristyn Wong-Tam

Motion to Extend Speaking Time (Carried)

Speaker Nunzaita proposed that Councillor Davis' speaking time be extended so that she could complete her remarks.

Vote (Extend Speaking Time) Oct-02-2012 3:20 PM

Result: Carried Majority Required - CC26.8 - Extend Councillor Davis' speaking time
Total members that voted Yes: 28 Members that voted Yes are Paul Ainslie, Ana Bail„o, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, Doug Ford, Mary Fragedakis, Doug Holyday, Mike Layton, Chin Lee, Gloria Lindsay Luby, Josh Matlow, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Anthony Perruzza, David Shiner, Michael Thompson, Adam Vaughan
Total members that voted No: 1 Members that voted No are Mark Grimes
Total members that were Absent: 16 Members that were absent are Maria Augimeri, Michelle Berardinetti, Glenn De Baeremaeker, John Filion, Paula Fletcher, Rob Ford, Norman Kelly, Giorgio Mammoliti, Pam McConnell, Cesar Palacio, John Parker, James Pasternak, Gord Perks, Jaye Robinson, Karen Stintz, Kristyn Wong-Tam

Motion to Extend Speaking Time (Carried)

Speaker Nunzaita proposed that Councillor Del Grande's speaking time be extended so that he could complete his remarks.

Vote (Extend Speaking Time) Oct-02-2012 4:09 PM

Result: Carried Majority Required - CC28.6 - Extend Councillor Del Grande's speaking time
Total members that voted Yes: 30 Members that voted Yes are Paul Ainslie, Ana Bail„o, Michelle Berardinetti, Raymond Cho, Gary Crawford, Vincent Crisanti, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, Doug Ford, Rob Ford, Mary Fragedakis, Doug Holyday, Norman Kelly, Mike Layton, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Mary-Margaret McMahon, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, Anthony Perruzza, Jaye Robinson, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 12 Members that voted No are Maria Augimeri, Josh Colle, Janet Davis, John Filion, Paula Fletcher, Mark Grimes, Chin Lee, Pam McConnell, Joe Mihevc, Gord Perks, David Shiner, Karen Stintz
Total members that were Absent: 3 Members that were absent are Shelley Carroll, Glenn De Baeremaeker, James Pasternak
Source: Toronto City Clerk at www.toronto.ca/council