posted November 08, 2007

Green Municipal Investment Fund Loan Agreement

Date submitted: September 27 2007

Request: Please send us a copy of the loan agreement with the Federation of Green Municipalities for the Green Municipal Investment Fund (GIMF) signed on March 23 2006 and as amended on July 9 2007.

Response: October 28, 2007Access is granted in full to the records you have requested, and I enclose a copy of them.

Notes:

Green Municipal Investment Fund loan for arenas and rinks energy retrofit

Energy Retrofit project, “Energy and Water Efficiency Retrofits” City of Toronto, Green Municipal Investment Fund (GIMF). Loan Agreement, between the City of Toronto and the federation of Canadian Municipalities (FCM). Project No.5055.

Agreement made on March 23 2006.

Maximum of loan is $8,750,000. It comes in five instalments (called “disbursements), one on Dec.31 of each year from 2006.

p. 9, the City must “perform the Project with due diligence and efficiency and in accordance with sound engineering, financial and business practices; maintain its accounts, management information and cost control system and books of accounts adequately to reflect truly and fairly the financial condition of the Project and to conform to GAAP…[generally accepted accounting priniciples]”

P. 11 While the loan is still unpaid, the Borrower shall…provide “within nine months after the end of the Borrower’s fiscal year, two (2) copies of its complete financial statements for such fiscal year….together with an audit report thereon from an independent public accountant or auditor…”

P. 14: “The parties recognize the importance of having an agreed-upon communications approach to making public information on the Project and agree to cooperate in developing a communications strategy which shall be consistent with this Section.”

At the end (p.18) the agreement is signed by Marilyn Toft for Ulli Watkiss and C.Weldon [treasurer] presumably on march 23 2006 (no date given by the signatures).

There are two stamps, with spaces that are filled in to say: 1. Authorized by Report No. 12(7) of the Policy and Finance Committee adopted in Council on October 2,3,and 4, 2001. 2. Authorized by Notice of Motion J (17) moved by Councillor Layton and seconded by Councillor Berardinetti as adopted in Council on June 18, 19, 20, 2002.

Both of the stamps are signed by Marilyn Toft, again no date.

Schedule A. Description of Project: (p.19) “The Energy and Waste Management Office (EWMO) of the City’s Department of Corporate Services has developed a citywide comprehensive energy and water conservation plan to take the City to the next level of energy efficiency and water conservation. This plan is outlined in An Energy Management Program, adopted by the City of Toronto’s Council in February 2003. Specific targets of this plan include: – A 20 per cent reduction in CO2 emissions by 2005 from 1990 levels (a reduction of 13.8MT); - A reduction of energy use in City buildings and facilities of at least 15 per cent by 2005. Did this happen?

Preliminary studies carried out through EWMO indicate that these targets are realizable with an investment by the City of approximately $35 million….the City anticipates on average an eight-year payback from the conservation initiatives.”

Energy and Energy Services - 15 per cent process efficiency improvements (in energy capture, transmission, delivery; when less energy is used, less energy needs to be generated)… - 15 per cent decrease in use/distribution by municipality in waste energy… - 5 per cent increase in replacement of energy sources by renewable and/or “waste” energy sources for buildings - 5 per cent increase in the capture/generation of renewable energy…

Water - 10 per cent decrease in water use in buildings/facilities

Total energy retrofit cost estimates:

Facility analyses and evaluation: $843,000 (2%) Engineering and specifications: $2,385,100 (7%) Construction: $23,966,500 (69%) Commissioning: $535,000 (2%) Project management: $4,508,000 (13%) Training: $1,680,900 (5%) Monitoring and verification: $1,081,500 (3%)

Total: $35,000,000 (100%)

Funding sources:

Operating savings funded debt: GMIF Loan: $8,750,000 (25%) Municipal capital budget: $4,250,000 (12%) Other $22,000,000 (63%) Total sources of funding: $35,000,000 (100%)