Item - 2011.AU2.3
Tracking Status
- City Council adopted this item on June 14, 2011 without amendments and without debate.
- This item was considered by the Audit Committee on May 12, 2011 and adopted without amendment. It will be considered by City Council on June 14, 2011.
AU2.3 - Facilities Management Division Energy Efficiency Office - Management of Energy Loans and Grants Funded by the Ontario Power Authority
- Decision Type:
- ACTION
- Status:
- Adopted on Consent
- Wards:
- All
City Council Decision
City Council on June 14 and 15, 2011, adopted the following:
1. City Council request the Director, Energy and Strategic Initiatives, to ensure that project results on individual loans are accurate and complete based on third party evaluations where available or a detailed analysis of energy savings information submitted by organizations.
2. City Council request the Director, Energy and Strategic Initiatives, to ensure that annual reports are submitted to City Council on the achievements of each energy loan program. The annual report should include greenhouse gas reductions generated by the loan programs, success or failure in meeting targets, the number of loans and their dollar value.
3. City Council request the Director, Corporate Finance, to implement a formal documented credit screening process for energy loans that includes an analysis of cash flow, debt capacity and the ability to repay the loan. In addition, the credit screening analysis should be forwarded to the Energy Efficiency Office to be placed in individual loan files.
4. City Council request the Director, Energy and Strategic Initiatives to consider developing a project ranking system in the event that loan demand exceeds funds available.
5. City Council request the Director, Energy and Strategic Initiatives, to ensure that briefing notes presented for loan approval specify loan security terms and include accurate and complete project data supported by an appropriate level of verification by an energy consultant or engineering firm.
6. City Council request the Director, Energy and Strategic Initiatives, to ensure that each project file clearly documents the project for which the loan is being approved and the energy savings attributable.
7. City Council request the Director, Energy and Strategic Initiatives, in consultation with the City Solicitor, to give consideration to amending the standard loan agreement to include the charging of interest on late loan payments.
8. City Council request the Director, Accounting Services, in consultation with the Director, Energy and Strategic Initiatives, to monitor the loan repayments on a regular basis and take timely action to follow up late loan payments.
9. City Council request the Director, Energy and Strategic Initiatives, to require that future loan agreements include a clause relating to the ownership of carbon credits. The wording of the clause should be developed in consultation with the City Solicitor.
10. City Council request the Director, Energy and Strategic Initiatives, to request that, where appropriate, future agreements with funding partners require that the City be provided with reports arising from relevant program evaluations or audits undertaken by the funding partners.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2011/au/bgrd/backgroundfile-37761.pdf
(March 4, 2011) Appendix 1 - Facilities Management Division Energy Efficiency Office Management of Energy Loans and Grants Funded by the Ontario Power Authority
https://www.toronto.ca/legdocs/mmis/2011/au/bgrd/backgroundfile-37762.pdf
Appendix 2 - Management's Response to the Auditor General's Review of Facilities Management Division Energy Efficiency Office - Management of Energy Loans and Grants Funded by the Ontario Power Authority
https://www.toronto.ca/legdocs/mmis/2011/au/bgrd/backgroundfile-37763.pdf
AU2.3 - Facilities Management Division Energy Efficiency Office - Management of Energy Loans and Grants Funded by the Ontario Power Authority
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Committee Recommendations
The Audit Committee recommends that:
1. City Council request the Director, Energy and Strategic Initiatives, to ensure that project results on individual loans are accurate and complete based on third party evaluations where available or a detailed analysis of energy savings information submitted by organizations.
2. City Council request the Director, Energy and Strategic Initiatives, to ensure that annual reports are submitted to City Council on the achievements of each energy loan program. The annual report should include greenhouse gas reductions generated by the loan programs, success or failure in meeting targets, the number of loans and their dollar value.
3. City Council request the Director, Corporate Finance, to implement a formal documented credit screening process for energy loans that includes an analysis of cash flow, debt capacity and the ability to repay the loan. In addition, the credit screening analysis should be forwarded to the Energy Efficiency Office to be placed in individual loan files.
4. City Council request the Director, Energy and Strategic Initiatives to consider developing a project ranking system in the event that loan demand exceeds funds available.
5. City Council request the Director, Energy and Strategic Initiatives, to ensure that briefing notes presented for loan approval specify loan security terms and include accurate and complete project data supported by an appropriate level of verification by an energy consultant or engineering firm.
6. City Council request the Director, Energy and Strategic Initiatives, to ensure that each project file clearly documents the project for which the loan is being approved and the energy savings attributable.
7. City Council request the Director, Energy and Strategic Initiatives, in consultation with the City Solicitor, to give consideration to amending the standard loan agreement to include the charging of interest on late loan payments.
8. City Council request the Director, Accounting Services, in consultation with the Director, Energy and Strategic Initiatives, to monitor the loan repayments on a regular basis and take timely action to follow up late loan payments.
9. City Council request the Director, Energy and Strategic Initiatives, to require that future loan agreements include a clause relating to the ownership of carbon credits. The wording of the clause should be developed in consultation with the City Solicitor.
10. City Council request the Director, Energy and Strategic Initiatives, to request that, where appropriate, future agreements with funding partners require that the City be provided with reports arising from relevant program evaluations or audits undertaken by the funding partners.
Origin
Summary
The Auditor General’s 2010 work plan included a review of the City’s environmental grant and loan programs that support climate change, clean air, sustainable energy and other environmental initiatives. This report addresses the energy loans and grants funded by the Ontario Power Authority managed by the Energy Efficiency Office, Facilities Management Division. At the February 22, 2011 meeting of Audit Committee, a report pertaining to grants administered by the Toronto Environment Office was considered by the Committee.
The objective of this review is to assess the adequacy of controls and the effectiveness of the administration of the City’s energy loan programs and grants administered on behalf of the Ontario Power Authority.
The report contains 10 recommendations. The implementation of these recommendations will improve the loan application and approval process, monitoring of loans to ensure that funds are achieving the proposed results and ensure that program outcomes are accurately reported to Council.
Background Information
https://www.toronto.ca/legdocs/mmis/2011/au/bgrd/backgroundfile-37761.pdf
(March 4, 2011) Appendix 1 - Facilities Management Division Energy Efficiency Office Management of Energy Loans and Grants Funded by the Ontario Power Authority
https://www.toronto.ca/legdocs/mmis/2011/au/bgrd/backgroundfile-37762.pdf
Appendix 2 - Management's Response to the Auditor General's Review of Facilities Management Division Energy Efficiency Office - Management of Energy Loans and Grants Funded by the Ontario Power Authority
https://www.toronto.ca/legdocs/mmis/2011/au/bgrd/backgroundfile-37763.pdf
Motions