Item - 2013.EX33.22

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.