Building & Investment Committee (BIC) Meeting - May 30, 2013

Public Agenda

1. Approval of Agenda and Review of Agenda Order

Action: Approval

Pre-read: Agenda

Presenter: All

2. Confirmation of Public Meeting Minutes of March 25, 2013

Action: Approval

Pre-read: Minutes

Presenter: All

3. Business Arising from the Minutes and Committee Action Items Update

Action: Discussion

Pre-read: Action Item List

Presenter: All

Reports from the Building and Investment Committee Chair

4. Chair's Report and Remarks

Action: Information

Pre-read: -

Presenter: Chair

Reports from Management

5. Demand Response Program Financing from City of Toronto Recoverable Debt Program

Action: Information

Pre-read: BIC:2013-34

Presenter: CFO and Director, Smart Buildings and Energy Management

6. Putting People First Recommendations – Update (DEFERRED)

Action: Information

Pre-read: BIC:2013-35

Presenter: Director, Strategic Planning & Stakeholder Relations

Closed Meeting Agenda

A. Approval of Agenda and Review of Agenda Order

Action: Approval

Pre-read: Agenda

Presenter: All

B. Confirmation of Closed Meeting Minutes of March 25, 2013

Action: Approval

Pre-read: Minutes

Presenter: All

C. Business Arising from the Minutes and Committee Action Items Update

Action: Discussion

Pre-read: Action Item List

Presenter: All

Reports from the Building and Investment Committee Chair

D. Chair's Report and Remarks

Action: Information

Pre-read: -

Presenter: Chair

Reports from Management

E. Confidential item from the Chief Development Officer

Action: Information

Pre-read: Verbal

Presenter: CDO

F. Confidential item including confidential budgetary information

Action: Approval

Pre-read: BIC:C2013-36

Presenter: Development Director, Regent Park

G. Confidential item including, but not limited to a proposed or pending transaction with a third party.

Action: Information

Pre-read: Verbal

Presenter: CDO

H. Confidential item including, but not limited to a proposed or pending transaction with a third party.

Action: Approval

Pre-read: BIC:C2013-37

Presenter: VP, Facilities Management (Interim) & Procurement Director

I. Confidential item including, but not limited to a proposed or pending transaction with a third party.

Action: Approval

Pre-read: BIC:C2013-38

Presenter: CFO and Director, Smart Buildings and Energy Management

J. Confidential item including, but not limited to identifiable individuals, proposed, pending and current transaction with a third party and recommendations of proposed policy or processes

Action: Information

Pre-read: BIC:C2013-39

Presenter: CDO

K. Confidential item including, but not limited to identifiable individuals, a proposed or pending transaction with a third party and recommendations of proposed policy or processes

Action: Information

Pre-read: BIC:C2013-40

Presenter: CDO

L. Confidential item including, but not limited to a transaction with a third party.

Action: Information

Pre-read: BIC:C2013-41

Presenter: CFO & Associate Director, Treasury

In Camera Agenda Items

Committee Only

TERMINATION

Public Meeting Minutes

The Building and Investment Committee of Toronto Community Housing Corporation met on May 30, 2013, in the Main Floor Conference Room, 931 Yonge Street, Toronto, commencing at 9:01 p.m.

Committee Directors present:

Brian Kwan, Chair

Councillor Maria Augimeri

Councillor Anna Bailao

Karen Newman

Audrey Wubbenhorst

Regrets:

none

Also present:

Marta Asturi, Legal Counsel and Assistant Corporate Secretary

Jason Gorel, Chief Financial Officer    

Heather Grey-Wolf, Development Director

Philip Jeung, Director, Smart Buildings and Energy Management

Hugh Lawson, Director, Strategic Planning & Stakeholder Relations

Graham Leah, Vice President, Asset Management 

Janice Lewkoski, Board Secretary

Roman Mesec, Vice President (Interim), Facilities Management

Liz Reid, Vice President, Information Technology

Criselda Samonte, Manager Development Accounting

Ken Scott, Senior Director, Procurement

Greg Spearn, Chief Development Officer

Alex Thomas, Associate Director, Treasury

Cindy Yung, Director, Financial Planning & Analysis

Bora Zekavica, Senior Director, Finance

Mr. Brian Kwan, the Chair, called the meeting to order and Ms. Mirela Bolentiru served as recording secretary.

Item 1 - Confirmation of Agenda

Motion carried

The Building and Investment Committee unanimously approved the agenda as presented.

Declaration of Conflict of Interest

The Chair requested members of the Building and Investment Committee to indicate any agenda item in which they had a conflict of interest, together with the nature of the interest. None were declared.

Deputations

The Committee Chair polled for any deputations to be heard at the meeting and explained the deputation process. None were declared.

Item 2 - Confirmation of Building and Investment Committee Minutes - March 25, 2013

Motion carried

ON MOTION DULY MADE by Ms. Audrey Wubbenhorst, seconded by Ms. Karen Newman, the Building and Investment Committee received the above-captioned minutes.

Item 3 - Business Arising from the Minutes and Committee Action Items Update

Motion carried

ON MOTION DULY MADE by Ms. Audrey Wubbenhorst, seconded by Ms. Karen Newman, the Building and Investment Committee received the report for information.

Item 4 - Chair's Report and Remarks, Verbal

The newly appointed Committee Chair, Mr. Brian Kwan, thanked Ms. Audrey Wubbenhorst for her contribution to the Committee as past Chair.

Motion carried

ON MOTION DULY MADE by Ms. Audrey Wubbenhorst, seconded by Ms. Karen Newman, the Building and Investment Committee received the report for information.

Item 5 - Demand Response Program Financing from City of Toronto Recoverable Debt Program, BIC:2013-34

The Building and Investment Committee had before it the above-captioned report (BIC:2013-34) from the President and Chief Executive Officer.

A discussion ensued, addressing the following matters:

• Internal Rate of Return (IRR) on investment:
  •  
  • The Demand Response (DR) Program will generate an estimated 9.2% IRR.
  • Projected net present value (NPV) for TCHC is $474,047 for a 10-year term, after paying about 4% interest on borrowing. 
  • At its January 2013 Council meeting, the City of Toronto has established a new Recoverable Debt Program to replace the existing Sustainable Energy Fund. The new program will provide $200 million funding at 3.8% current rate for energy efficiency projects for a 10-15 year repayment term.
  • 18 buildings are targeted as part of this first TCHC pilot project of this nature, with estimated capital costs of $1.96 million and estimated net income of around $65,000 per year, for a 10-year term.
  • Hydro rates are expected to increase by 5% next year.
  • TCHC will issue a Request for Proposals (RFP) for an energy services company (ESCO) that would assist TCHC in implementing the DR Program in compliance with the current standards. ESCO will also financially guarantee the savings and will mitigate all financial and other associated risks for TCHC.
  • Investment: to modify the existing qualified standby TCHC generators to meet the DR requirements.
  • The DR program in Ontario is coordinated by the Ontario Power Authority (OPA) and is at is third cycle, which is referred to as DR3.
• Natural gas generator sets – installation, ongoing maintenance, measurements and monitoring:
  • Evaluating whether TCHC or ESCO would provide maintenance services.
  • New concept implemented at TCHC for the first time.
  • ESCO will be responsible for annual energy audits, completed by an independent third party to verify the savings, according to the contract with the ESCO.
  • The Committee requested that the Chief Financial Officer report back to the Committee on the status of the DR program.

Motion carried

ON MOTION DULY MADE by Councillor Maria Augimeri, seconded by Ms. Audrey Wubbenhorst, the Building and Investment Committee adopted the report and resolved to:

1. Approve and authorize the President and Chief Executive Officer (or his designate) to enter into the Recoverable Debt Program Agreement with the City of Toronto to finance recommended demand response program retrofits to eighteen (18) selected buildings as identified in this report for a total amount up to $ 1.96 million; and
2. Authorize the appropriate officials of the Corporation to give effect to the above recommendations.

Item 6 - Putting People First Recommendations – Update, BIC:2013-35

Deferred

The Building and Investment Committee had before it the above-captioned report (BIC:2013-35) from the President and Chief Executive Officer.

The Director of Strategic Planning and Stakeholder Relations reported to the Committee that he is working with the City of Toronto towards finalizing this report, and will report back to the Committee at a future meeting, upon its finalization.

PUBLIC MEETING PROCEEDINGS

Motion carried

ON MOTION DULY MADE by Councillor Maria Augimeri, seconded by Ms. Karen Newman, the Building and Investment Committee adjourned the public meeting at 9:18 a.m. 

CLOSED MEETING PROCEEDINGS

Motion carried

ON MOTION DULY MADE by Councillor Maria Augimeri, seconded by Ms. Karen Newman, the Building and Investment Committee resolved to meet in closed meeting at 9:18 a.m. to consider items A to L.

TERMINATION

The meeting of the Building and Investment Committee terminated at 10:56 a.m.