Item - 2013.EX33.22

Tracking Status

EX33.22 - Proposed Energy and Water Efficiency Initiative for the Residential Sector

Decision Type:
ACTION
Status:
Adopted
Wards:
All

City Council Decision

City Council on July 16, 17, 18 and 19, 2013, adopted the following:

 

1.         City Council enact a by-law pursuant to Section 35 of Ontario Regulation 596/06 to authorize the undertaking of energy efficiency and water conservation works on private residential property as local improvements under the Residential Energy Retrofit Pilot Program set out in Appendix A to the report (June 18, 2013) from the City Manager and the Deputy City Manager and Chief Financial Officer.

 

2.         City Council authorize the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer to:

 

a.         implement the Residential Energy Retrofit Pilot Program in accordance with the process and criteria set out in Appendix A to the report (June 18, 2013) from the City Manager and the Deputy City Manager and Chief Financial Officer, including the approval of participating properties, eligible retrofit measures, eligible expenses and pilot neighbourhood selection;

 

b.         negotiate and enter into all property owner agreements with consenting property owners on the terms and conditions set out in Appendix B to the report (June 18, 2013) from the City Manager and the Deputy City Manager and Chief Financial Officer, and in a form satisfactory to the City Solicitor and sufficient for the City Clerk pursuant to Ontario Regulation 596/06; and

 

c.         report back to City Council upon the conclusion of the Residential Energy Retrofit Pilot Program with an evaluation of outcomes and, if appropriate, a business case for a broader full-scale program.

 

3.         City Council authorize the City Clerk to give the requisite notices, to assess the sufficiency of the property owner agreements, and to certify the property owner agreements, all in accordance with Ontario Regulation 596/06.

 

4.         City Council approve the imposition of a special local improvement charge on properties participating in the Residential Energy Retrofit Pilot Program in the amount of the cost of the local improvement undertaken on the participating properties as set out in the property owner agreement for the participating property, and payable over the term set out in the property owner agreement for the participating property.

 

5.         City Council authorize the City Treasurer to:

 

a.         prepare a local improvement roll, to certify the local improvement roll, and to certify that the full payment of the special charge has occurred when and if it does; and

 

b.         add the special charge imposed on participating properties for the cost of the work undertaken on that property to the tax roll for the property in the year in which it becomes payable.

 

6.         City Council authorize the City Solicitor to regularly submit bills to impose the special charge on participating properties.

 

7.         City Council authorize the Deputy City Manager and Chief Financial Officer to:

 

a.         establish a discretionary reserve fund called the 'Local Improvement Charge Energy Works Reserve Fund' to provide funds to consenting property owners for the purpose of undertaking qualifying retrofit projects on private property, including but not limited to, energy and water efficiency and conservation, under the Residential Energy Retrofit Pilot Program as outlined in Appendix E to the report (June 18, 2013) from the City Manager and the Deputy City Manager and Chief Financial Officer;

 

b.         amend Municipal Code, Chapter 227, Reserve and Reserve Funds, by adding ‘Local Improvement Charge Energy Works Reserve Fund’ to Schedule No. 7 - Corporate Discretionary Reserve Funds;

 

c.         borrow up to $20 million from the Working Capital Reserve over the Residential Energy Retrofit Pilot Program and transfer such funds to the Local Improvement Charge Energy Works Reserve Fund to fund the Residential Energy Retrofit Pilot Program;

 

d.         repay the Working Capital Reserve from the Local Improvement Charge Energy Works Reserve Fund as local improvement charges established under the Residential Energy Retrofit Pilot Program are paid to the City by property owners participating in the Program; and

 

e.         establish interest rates that reflect the City’s current return on its investment portfolio with terms to maturity of up to 15 years (single-family houses) and 20 years (multi-residential buildings) for the purpose of recovering the City's foregone investment income on the funds used by the Residential Energy Retrofit Pilot Program.  As part of the overall cost of the Program, the interest rate will be applied to the cost of each retrofit project and used to determine the total local improvement charges imposed by the City on participating properties.

 

8.         City Council increase the 2013 Approved Operating Budget for Environment and Energy Division by $162,500.00 gross and $0 net to begin the Residential Energy Retrofit Pilot Program in the fall of 2013.

 

9.         City Council authorize the City Manager to negotiate and enter into all necessary agreements with Toronto Hydro, Enbridge Gas Distribution, Natural Resources Canada and other partners, in forms satisfactory to the City Solicitor, to support joint implementation of the Residential Energy Retrofit Pilot Program, as required.

Background Information (Committee)

(June 18, 2013) Report with Appendices A to E, from the City Manager and the Deputy City Manager and Chief Financial Officer on Proposed Energy and Water Efficiency Initiative for the Residential Sector
https://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-59644.pdf

Communications (Committee)

(June 26, 2013) E-mail from Ann Hannah, President, Toronto Real Estate Board (EX.Supp.EX33.22.1)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38748.pdf
(June 27, 2013) E-mail from Timothy M. Egan, President and Chief Executive Officer, Canadian Gas Association (EX.Supp.EX33.22.2)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38749.pdf
(June 28, 2013) E-mail from Vladan Veljovic, President and CEO, Green Saver (EX.Supp.EX33.22.3)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38758.pdf
(June 28, 2013) E-mail from Mitzie Hunter, Chief Executive Officer, CivicAction (EX.Supp.EX33.22.4)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38759.pdf
(June 28, 2013) E-mail from Greg Labbe, Partner, BlueGreen Consulting Group Inc. (EX.Supp.EX33.22.5)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38760.pdf
(June 28, 2013) E-mail from Mara Samardzic, Building Industry and Land Development Association (BILD) (EX.Supp.EX33.22.6)
(June 29, 2013) E-mail from Ed Homonylo, President, Mammoth Building Inspection Services Inc. (EX.Supp.EX33.22.7)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38835.pdf
(June 30, 2013) E-mail from Gabriella Kalapos, Acting Executive Director, Clean Air Partnership, Co-Chair of the Clean Air Council (EX.Supp.EX33.22.8)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38836.pdf
(July 1, 2013) E-mail from Julia Langer (EX.Supp.EX33.22.9)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38839.pdf
(July 2, 2013) E-mail from Jamie Paris, Manager, Residential Energy Solutions, Enbridge (EX.Supp.EX33.22.10)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38840.pdf
(July 2, 2013) E-mail from Daryl Chong, President and CEO, Greater Toronto Apartment Association (EX.Supp.EX33.22.11)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38732.pdf
(July 2, 2013) E-mail from Karen Nasmith, Director, Co-Founder, Project Neutral, Centre for Social Innovation (EX.Supp.EX33.22.12)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38843.pdf
(July 2, 2013) Letter from Gail Lawlor, Steering Committee Member, Building Performance Institute Canada (EX.Supp.EX33.22.13)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38733.pdf
(July 2, 2013) Letter from Qumers Wejdan, Legal Counsel, Canadian Bankers Association (EX.New.EX33.22.14)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38890.pdf
(June 27, 2013) Letter from Chris Tyrell, Vice President Customer Care and Chief Conservation Officer, Toronto Hydro (EX.New.EX33.22.15)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38891.pdf
(July 2, 2013) Letter from Rita Bijons, Co-Chair, Green 13 (EX.New.EX33.22.16)
(July 2, 2013) E-mail from Jode Roberts (EX.New.EX33.22.17)
(June 26, 2013) Letter from Councillor Mike Layton, Ward 19 - Trinity-Spadina (EX.New.EX33.22.18)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38894.pdf
(July 2, 2013) E-mail from Mark Salerno, Manager (EX.New.EX33.22.19)
(July 2, 2013) Letter from Brian Denney, P. Eng, Chief Executive Officer, Toronto and Region Conservation (TRCA) (EX.New.EX33.22.20)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38896.pdf
(July 3, 2013) E-mail from Charley Beresford (EX.New.EX33.22.21)

Motions (City Council)

Motion to Adopt Item (Carried)

Vote (Adopt Item) Jul-19-2013 11:28 AM

Result: Carried Majority Required - EX33.22 - Adopt the item
Total members that voted Yes: 30 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Vincent Crisanti, Glenn De Baeremaeker, Sarah Doucette, Doug Ford, Mark Grimes, Doug Holyday, Norman Kelly, Mike Layton, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Ron Moeser, Frances Nunziata, Cesar Palacio, John Parker (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Karen Stintz, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 15 Members that were absent are Gary Crawford, Janet Davis, Mike Del Grande, Frank Di Giorgio, John Filion, Paula Fletcher, Rob Ford, Mary Fragedakis, Chin Lee, Gloria Lindsay Luby, Giorgio Mammoliti, Peter Milczyn, Denzil Minnan-Wong, David Shiner, Michael Thompson

EX33.22 - Proposed Energy and Water Efficiency Initiative for the Residential Sector

Decision Type:
ACTION
Status:
Adopted
Wards:
All

Committee Recommendations

The Executive Committee recommends that:

 

1.         City Council enact a by-law pursuant to Section 35 of Ontario Regulation 596/06 to authorize the undertaking of energy efficiency and water conservation works on private residential property as local improvements under the Residential Energy Retrofit Pilot Program set out in Appendix A to the report (June 18, 2013) from the City Manager and the Deputy City Manager and Chief Financial Officer.

 

2.         City Council authorize the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer to:

 

a.         implement the Residential Energy Retrofit Pilot Program in accordance with the process and criteria set out in Appendix A to the report (June 18, 2013) from the City Manager and the Deputy City Manager and Chief Financial Officer, including the approval of participating properties, eligible retrofit measures, eligible expenses and pilot neighbourhood selection;

 

b.         negotiate and enter into all property owner agreements with consenting property owners on the terms and conditions set out in Appendix B to the report (June 18, 2013) from the City Manager and the Deputy City Manager and Chief Financial Officer, and in a form satisfactory to the City Solicitor and sufficient for the City Clerk pursuant to Ontario Regulation 596/06; and

 

c.         report back to City Council upon the conclusion of the Residential Energy Retrofit Pilot Program with an evaluation of outcomes and, if appropriate, a business case for a broader full-scale program.

 

3.         City Council authorize the City Clerk to give the requisite notices, to assess the sufficiency of the property owner agreements, and to certify the property owner agreements, all in accordance with Ontario Regulation 596/06.

 

4.         City Council approve the imposition of a special local improvement charge on properties participating in the Residential Energy Retrofit Pilot Program in the amount of the cost of the local improvement undertaken on the participating properties as set out in the property owner agreement for the participating property, and payable over the term set out in the property owner agreement for the participating property.

 

5.         City Council authorize the City Treasurer to:

 

a.         prepare a local improvement roll, to certify the local improvement roll, and to certify that the full payment of the special charge has occurred when and if it does; and

 

b.         add the special charge imposed on participating properties for the cost of the work undertaken on that property to the tax roll for the property in the year in which it becomes payable.

 

6.         City Council authorize the City Solicitor to regularly submit bills to impose the special charge on participating properties.

 

7.         City Council authorize the Deputy City Manager and Chief Financial Officer to:

 

a.         Establish a discretionary reserve fund called the 'Local Improvement Charge Energy Works Reserve Fund' to provide funds to consenting property owners for the purpose of undertaking qualifying retrofit projects on private property, including but not limited to, energy and water efficiency and conservation, under the Residential Energy Retrofit Pilot Program as outlined in Appendix E to the report (June 18, 2013) from the City Manager and the Deputy City Manager and Chief Financial Officer;

 

b.         Amend Municipal Code, Chapter 227, Reserve and Reserve Funds, by adding ‘Local Improvement Charge Energy Works Reserve Fund’ to Schedule No. 7 - Corporate Discretionary Reserve Funds;

 

c.         Borrow up to $20 million from the Working Capital Reserve over the Residential Energy Retrofit Pilot Program and transfer such funds to the Local Improvement Charge Energy Works Reserve Fund to fund the Residential Energy Retrofit Pilot Program;

 

d.         Repay the Working Capital Reserve from the Local Improvement Charge Energy Works Reserve Fund as local improvement charges established under the Residential Energy Retrofit Pilot Program are paid to the City by property owners participating in the Program; and

 

e.         Establish interest rates that reflect the City’s current return on its investment portfolio with terms to maturity of up to 15 years (single-family houses) and 20 years (multi-residential buildings) for the purpose of recovering the City's foregone investment income on the funds used by the Residential Energy Retrofit Pilot Program.  As part of the overall cost of the Program, the interest rate will be applied to the cost of each retrofit project and used to determine the total local improvement charges imposed by the City on participating properties.

 

8.         City Council increase the 2013 Approved Operating Budget for Environment and Energy Division by $162,500.00 gross and $0 net to begin the Residential Energy Retrofit Pilot Program in the fall of 2013.

 

9.         City Council authorize the City Manager to negotiate and enter into all necessary agreements with Toronto Hydro, Enbridge Gas Distribution, Natural Resources Canada and other partners, in forms satisfactory to the City Solicitor, to support joint implementation of the Residential Energy Retrofit Pilot Program, as required.

Origin

(June 18, 2013) Report from the City Manager and the Deputy City Manager and Chief Financial Officer

Summary

This report seeks City Council approval to undertake a pilot program designed to advance funding to consenting property owners interested in undertaking qualifying energy and water improvements and willing to allow the City to impose a Local Improvement Charge (LIC) on their property to secure repayment.  The program responds to a City Council directive and is authorized by recent Provincial amendments to the City of Toronto Act's LIC regulation (Ontario Regulation 596/06).

 

Eligible LIC projects include cost-effective natural gas, electricity and water efficiency and conservation measures.  The funds advanced to consenting property owners would be repaid to the City over a period of 5 to 15 years (single-family houses) and 5 to 20 years (multi-unit residential buildings) via a special charge that is added to the property tax bill of the benefitting property.  The repayment term would be geared to generally reflect the anticipated operating cost reductions (i.e. energy or water savings) and useful life of the retrofit measure(s).

 

This voluntary program will include two streams, single-family homes and multi-unit residential buildings, and targets the participation of up to 1,000 houses and 10 multi-unit residential buildings completing energy assessments, installing energy efficiency and water conservation measures and accessing the LIC, with a total funding envelope of $20 million.  The program is projected to stimulate job creation, increase housing affordability through operating cost savings and annually avoid 5,000 tonnes of greenhouse gas emissions.

 

The primary focus of the pilot program is to test the market receptivity to this new financing mechanism, its ability to accelerate the uptake for investment in energy efficiency and evaluate how it aligns with the City’s economic development, housing quality and affordability and environmental sustainability objectives.

Background Information

(June 18, 2013) Report with Appendices A to E, from the City Manager and the Deputy City Manager and Chief Financial Officer on Proposed Energy and Water Efficiency Initiative for the Residential Sector
https://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-59644.pdf

Communications

(June 26, 2013) E-mail from Ann Hannah, President, Toronto Real Estate Board (EX.Supp.EX33.22.1)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38748.pdf
(June 27, 2013) E-mail from Timothy M. Egan, President and Chief Executive Officer, Canadian Gas Association (EX.Supp.EX33.22.2)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38749.pdf
(June 28, 2013) E-mail from Vladan Veljovic, President and CEO, Green Saver (EX.Supp.EX33.22.3)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38758.pdf
(June 28, 2013) E-mail from Mitzie Hunter, Chief Executive Officer, CivicAction (EX.Supp.EX33.22.4)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38759.pdf
(June 28, 2013) E-mail from Greg Labbe, Partner, BlueGreen Consulting Group Inc. (EX.Supp.EX33.22.5)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38760.pdf
(June 28, 2013) E-mail from Mara Samardzic, Building Industry and Land Development Association (BILD) (EX.Supp.EX33.22.6)
(June 29, 2013) E-mail from Ed Homonylo, President, Mammoth Building Inspection Services Inc. (EX.Supp.EX33.22.7)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38835.pdf
(June 30, 2013) E-mail from Gabriella Kalapos, Acting Executive Director, Clean Air Partnership, Co-Chair of the Clean Air Council (EX.Supp.EX33.22.8)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38836.pdf
(July 1, 2013) E-mail from Julia Langer (EX.Supp.EX33.22.9)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38839.pdf
(July 2, 2013) E-mail from Jamie Paris, Manager, Residential Energy Solutions, Enbridge (EX.Supp.EX33.22.10)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38840.pdf
(July 2, 2013) E-mail from Daryl Chong, President and CEO, Greater Toronto Apartment Association (EX.Supp.EX33.22.11)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38732.pdf
(July 2, 2013) E-mail from Karen Nasmith, Director, Co-Founder, Project Neutral, Centre for Social Innovation (EX.Supp.EX33.22.12)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38843.pdf
(July 2, 2013) Letter from Gail Lawlor, Steering Committee Member, Building Performance Institute Canada (EX.Supp.EX33.22.13)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38733.pdf
(July 2, 2013) Letter from Qumers Wejdan, Legal Counsel, Canadian Bankers Association (EX.New.EX33.22.14)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38890.pdf
(June 27, 2013) Letter from Chris Tyrell, Vice President Customer Care and Chief Conservation Officer, Toronto Hydro (EX.New.EX33.22.15)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38891.pdf
(July 2, 2013) Letter from Rita Bijons, Co-Chair, Green 13 (EX.New.EX33.22.16)
(July 2, 2013) E-mail from Jode Roberts (EX.New.EX33.22.17)
(June 26, 2013) Letter from Councillor Mike Layton, Ward 19 - Trinity-Spadina (EX.New.EX33.22.18)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38894.pdf
(July 2, 2013) E-mail from Mark Salerno, Manager (EX.New.EX33.22.19)
(July 2, 2013) Letter from Brian Denney, P. Eng, Chief Executive Officer, Toronto and Region Conservation (TRCA) (EX.New.EX33.22.20)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-38896.pdf
(July 3, 2013) E-mail from Charley Beresford (EX.New.EX33.22.21)

Motions

Motion to Adopt Item moved by Councillor Michael Thompson (Carried)

Vote (Adopt Item) Jul-03-2013

Result: Carried Majority Required
Total members that voted Yes: 13 Members that voted Yes are Paul Ainslie, Gary Crawford, Vincent Crisanti, Frank Di Giorgio, Rob Ford (Chair), Doug Holyday, Norman Kelly, Peter Milczyn, Denzil Minnan-Wong, Cesar Palacio, Anthony Perruzza, David Shiner, Michael Thompson
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 0 Members that were absent are
Source: Toronto City Clerk at www.toronto.ca/council