June 12, 2006

 

 


REPORT TO GENERAL COMMITTEE

 

 

SUBJECT:                          Markham Environmental Sustainability Fund Application Form Revisions

CONTACT/AUTHOR:      Victoria McGrath extension 7516

 

RECOMMENDATION:

THAT the staff report titled “Markham Environmental Sustainability Fund Application Form Revisions”, dated May 1, 2006, be received;

 

AND THAT Council approve the revisions to the MESF application form and guide to preclude private benefits only, as outlined in this report.

 

AND THAT Council approve the project application made by the Hunt Club in the amount of $10,000, as evaluated and recommended by staff and as outlined in this report, to be funded from the Markham Environmental Sustainability Fund Account #87 2800168;

 

 

FINANCIAL CONSIDERATIONS:

It is recommended that Council approve the project application made by the Hunt Club in the amount of $10,000, as evaluated and recommended by staff and as outlined in this report, to be funded from the Markham Environmental Sustainability Fund (MESF), Account #87 2800168.

 

 


PURPOSE:

 


The purpose of this report is to bring forward for Council approval the recommended revisions to the Markham Environmental Sustainability Fund application form and guide to better define private vs. public benefits. In addition, this report recommends that funding be granted to the Hunt Club for their spring 2006 MESF application for Energy Retrofit Assistance.


 

BACKGROUND:

 


Markham Council, at its General Committee meeting on April 24, 2006, directed staff to prepare a report to Council with respect to possible amendments to the Terms of Reference for the Markham Environmental Sustainability Fund (MESF) which will review the consideration of applications submitted by private corporations. At that same meeting, Committee deferred a MESF application by the Hunt Club for $10,000 for an Energy Retrofit Program.

 

On May 1, 2006, staff prepared a report recommending changes to the MESF application form and guide around private vs. public benefits for applicants. At that meeting, General Committee also deferred consideration of the MESF application by the Hunt Club for $10,000 for an Energy Retrofit Assistance proposal until the MESF application revisions had been further defined.


 

OPTIONS/ DISCUSSION:

 


Under the administration guidelines approved by Council in April 2004, the MESF is replenished annually to $300,000, or more. Community projects are allocated up to $100,000 annually (approximately one-third of the fund) with the remaining $200,000 available for Town internal projects.

 

Program Requirements

The following objectives are to be considered by Environmental Issues Committee when reviewing the applications:

·        the project provides a widespread lasting environmental benefit for the community;

·        the project is a leading environmental innovation that can be showcased by the Town of Markham;

·        the projects promotes education, understanding and participation in environmental sustainability in the Town of Markham; and,

·        the project supports the Town’s environmental policies and strategic plan

Projects are expected to meet at least one of these criteria.

 

Community Funding Criteria

These are as follows:

·        projects must be within the Town of Markham, initiated by Town Staff or Councillor of the Town of Markham or Town of Markham community groups;

·        applicants can request a maximum of $10,000 from the MESF per project per year;

·        applicants may only apply once a year, for projects that will be completed within that same one-year time frame;

·        only materials and equipment costs (not consulting services) are eligible for funding from the MESF; and,

·        the project should have measurable results.

 

In addition to ensuring applications meet the above criteria, staff review each application for completeness and evaluate each application to ensure that all applications meet the intent of the MESF prior to recommending approval to the Environmental Issues Committee. Each MESF application is circulated to staff in Operations/Parks Department, Asset Management, Urban Design, Finance Department, By-law Enforcement and the Clerks Department to solicit any concerns or conflicts with any projects or initiatives underway that may be affected by the MESF application or project.

 

 

 

 

MESF Application Form Update

At its meeting on May 1, 2006, General Committee requested staff to refine the MESF application form to better define private vs. public benefits and to establish within the application process an opportunity to preclude applications that provided only a private benefit.

 

The MESF application form, attached as Appendix 1, has been changed to reflect the following wording (in bold) under the “Who Can Apply” section:

 

“Eligible organizations include: other levels of government, public agencies, school boards and Markham community groups including: Markham-based, community ratepayer associations and local organizations, such as conservation groups, Scouts, etc.

 

Multi-jurisdictional groups, such as NGOs, or other organizations may be considered if there are clearly demonstrable benefits in the Town of Markham, conditional on such groups working with a local Markham community group.

 

A maximum of 3 schools may receive funding per funding cycle, to a maximum of $5000 each.

 

Individuals and “for-profit” organizations are not eligible. Any project that results in a direct financial private benefit to the fund recipient is not eligible.”

 

Revisions have also been included in the section “What are the Community Funding Criteria for an Application?” to include the following wording:  “Funding will not be granted where projects have commenced.” This revision will ensure that retrospective or retroactive funding cannot be provided.

 

In addition to the changes noted above, wording promoting benefits to the Markham community has been enhanced on the application form and guide in the introduction.

 

Although there was some discussion between Strategic Services staff and Legal Services around precluding MESF applications from private corporations on the whole, it was determined that in many circumstances, private corporations could provide benefits to the Markham community through a variety of projects or initiatives. For example, a private corporation may wish to undertake a tree planting in a community park. In this example, there is no private benefit to the applicant and there would be benefits to the Markham community. As another example, a water efficiency program funded by the MESF may provide residents with low flow shower heads or toilet dams which would provide private benefits to the resident via financial savings as well as water conservation savings. As a result, staff revised the wording on the MESF application form and guide to preclude private benefits only.

 

Because the MESF application did not have any of these revisions in place at the time of the February 6, 2006, round of applications, staff suggest that the revisions be effective immediately and influence the September 8, 2006, round of MESF applications.  Staff do not recommend using the revisions in evaluating the Hunt Club’s application for MESF funding for an Energy Retrofit Program because the private benefits of receiving the MESF funding is offset by the significant environmental benefits of the energy savings and emissions reductions.

 

The Hunt Club, 610 Bullock Drive, Markham

·                    requesting $10,000 for their Energy Retrofit Assistance Program

 

The Hunt Club is a condominium corporation, comprising 235 suites represented by a five member volunteer board of directors, working towards energy efficiencies since 1998. The Energy Retrofit proposal includes replacing existing inefficient boilers with new, high-efficiency boilers, which results in requiring only five boilers from the ten boilers previously required. The estimated project savings in energy for this proposal is 168,022 cubic metres of natural gas or $63,500 per year. In addition, the project will preclude an estimated 323,893 Kg of CO2 emissions, a significant contributor of greenhouse gas. The project is submitted under the energy efficiency and leading innovation criteria of the MESF.

 

The MESF $10,000 would be applied directly to the capital costs of the high-efficiency boilers, which have already been installed at the Hunt Club. In addition to the MESF application, the Federal Government’s Energy Innovators Initiative and Enbridge have contributed $57,700 funding for this proposal.

 

The Hunt Club’s Energy Retrofit Assistance proposal could be showcased through the Town of Markham’s Energy Conservation Office (MECO) as an example of a private corporation taking a proactive position to become more energy efficient.  This proposal would tie into three of MECO’s initiatives including the Energy and Environmental Management System (EEMS), the Better Buildings Partnership and to a lesser extent, the Advancing High Performance Buildings program.  These are discussed in further detail below.

Energy and Environmental Management System (EEMS)

With the purchase of the Energy and Environmental Management System (EEMS) from the Region of York, the Town of Markham is now adept at measuring current consumption patterns and load shedding impacts of energy conservation programs within the Town's own operations.  EEMS is a versatile, web based software designed to record and manage energy consumption and expenses of buildings, street lights, and other types of facilities. EEMS has the capability to track electricity, natural gas, water and waste water accounts, and other fuel usage (gasoline, diesel, etc.), as well as provide analysis on utility performance.  

This tool will also be utilized going forward to measure and track conservation performance of high performance buildings.  MECO could establish a pilot project with the Hunt Club to begin measuring the condominium’s energy and greenhouse gas emission reductions. The Hunt Club would have to provide MECO with their historical data (consumption and cost) for hydro, water and gas and then continue to provide the information in order for EEMS to track and report on the energy savings.

In addition, Markham could benefit from partnering with the Hunt Club through EEMS by securing ownership of the carbon credits that would be saved by the investment in the energy efficient boilers. The Town of Markham could then use these credits towards Markham’s Kyoto targets.

Better Buildings Partnership

The Better Buildings Partnership (BBP) is an innovative initiative being implemented by MECO.  The purpose is to promote and implement energy efficiency, water conservation and building renewal enhancement across the Town's facilities including street and traffic lighting, while reducing C02 emissions.  The program involves identifying energy conservation opportunities that may include energy efficient retrofits and building renewal initiatives that will consist of a mix of short and long-term paybacks but will greatly reduce energy demand on the grid and save the Town significant dollars. 

While MECO’s current focus is on Town-owned facilities, Markham intends to launch this program externally to the private sector in the future which would include working with the broader community to encourage energy efficiency and building renewal enhancements that will contribute to conservation goals and emission reduction targets.  Again, the Hunt Club could be considered a pilot study of the BBP and their savings and success could be showcased as an example.

Advancing High Performance Buildings (AHPB)

The AHPB Program represents an opportunity for the Town to create a sustainable community that will lower the overall environmental load on the built environment through reduced energy consumption.  The program focuses on new designs, construction and operating methods that will reduce the energy consumption of new infrastructure.  Existing benchmarks will be documented and outputs will be measured from new buildings that participate in the AHPB program. Pre- and post-program performance capabilities will be identified to project future cost avoidances while reducing overall consumption. 

Although the focus of the AHPB program is currently on new buildings, recognizing retrofit initiatives, both within the Town’s infrastructure and within the Markham community could be part of the program evolution. Because the Hunt Club has taken the initiative to undertake this Energy Retrofit Assistance Proposal and has done many other energy initiatives prior to this project, it may be an ideal partner to showcase the AHPB program within the existing community.

As a result of Markham Council’s commitment to building a “conservation culture” within Markham and because the Hunt Club’s Energy Retrofit Assistance Proposal represents a significant benefit to the Town of Markham community due to its energy and greenhouse gas emissions reductions, staff recommends approval of the application on the following conditions:

The Hunt Club agrees to partner with the Town of Markham on the three MECO programs outlined in this report;

The Hunt Club agrees to provide all the historical (data from before the installation of the high efficiency boilers to the present) and future energy data necessary, including hydro, water and gas, to participate in the outlined MECO programs;

The Hunt Club agrees that the Town of Markham will be entitled to the greenhouse gas credits attributed to the investment in the energy efficient boilers;

The Hunt Club agrees to promote energy efficiency and the MESF to other condominium corporations within the Town of Markham, by hosting a workshop at the Hunt Club and demonstrating the energy efficiency initiatives underway at the Hunt Club, including the new boilers, and;

The Hunt Club agrees to promote the MESF and the Markham Energy Conservation Office in all communications associated with the Energy Retrofit Assistance Proposal, including any communications to other levels of government related to this project and to the Hunt Club residents.

MECO’s Budget

While MECO supports the recommendation that the Hunt Club receive MESF funding for the upgrade of its boilers, and recognizes that the nature of the Hunt Club’s proposal fits well with three of the MECO programs as outlined above, direct funding for the Hunt Club proposal from MECO is not an option. 

PowerStream has provided MECO with funding to design, deliver and market conservation demand management projects and initiatives under each of the six approved MECO programs.  In essence, the funding is for program delivery and not for capital investments in one-off projects.  The funding available under the Better Buildings Partnership is being utilized to roll-out a program that initially will seek to capture energy efficiency opportunities in our Town-owned facilities, including street lighting and later on, will be utilized to roll-out a business and marketing plan to encourage the private sector to do the same.

 

 

 

 

 

CONCLUSION

The MESF was created to assist the Town with funding innovative and leading environmental initiatives that contribute to the sustainability and health of the natural environment.  The fund is intended to provide financial resources for Town of Markham-based projects and initiatives that promote environmental responsibility and enhance the protection of the Town’s natural resources. Staff will continue to improve communications to promote the fund to attract better and more applications and also to improve the review process as this program grows and matures. 

 

 


 

FINANCIAL TEMPLATE (Separate Attachment):

 


The following table is a summary of the financial considerations for this report:

 

 

 

 

 

Current Budget Available (unspent)

 

$108,673

 

 

Less Cost

 

($10,000)

 

Awarded to Hunt Club

Less Contingency

 

 

 

 

Budget Remaining

 

$98,673

 

 

 


 

ENVIRONMENTAL CONSIDERATIONS:

 


The MESF supports the Town of Markham’s strategic priorities related to the community and corporate vision of environmental focus.

 


 

ENGAGE 21ST CONSIDERATIONS:

 


The MESF supports the Town of Markham’s strategic priorities related to the community and corporate vision of environmental focus.

 


 

BUSINESS UNITS CONSULTED AND AFFECTED:

 


Operations/Parks Department

Asset Management

Urban Design

Finance Department

By-law Enforcement

Clerks Department

 

 

 

 

 

RECOMMENDED BY:  

 

 

 

 

 

 

Victoria McGrath

Manager, Environmental Leadership

 

Jim Sales, Commissioner

Community and Fire Services


 

ATTACHMENTS:

 


Appendix 1 – MESF Application form and guide

 

 

 

Q:\Strategic Services\Shared Data\Environmental Leadership\Reports\2006 Reports\MESF rev app form report to GC 6 12 06 Final.doc