Board of Directors of the Toronto Atmospheric Fund
The full agenda, as filed
All 13 items in the clerk’s order. Each carries the city’s own words: the staff recommendation, what the body decided, and its status. Nothing below is written by us.
TA5.1received
Jonathan Batty, Integrity Commissioner, City of Toronto, will give a presentation on the Role of the Integrity Commissioner, the Code of Conduct, and the Municipal Conflict of Interest Act.
The Board of Directors of the Toronto Atmospheric Fund: 1. Received the item for information.
TA5.2received
Chief Executive Officer's Report
This report provides an update on Toronto Atmospheric Fund initiatives with regard to Governance and Organizational Matters and Strategic Programs.
The Board of Directors of the Toronto Atmospheric Fund received the item for information.
TA5.3adopted
The attached report presents the activities undertaken by Toronto Atmospheric Fund in keeping with the 2019 Business Plan, the outcomes achieved including on TAF's Key Performance Indicators (KPIs), and reflections on challenges encountered and lessons learned.
The Board of Directors of the Toronto Atmospheric Fund: 1. Received Toronto Atmospheric Fund's 2019 Business Report - Attachment 1 to the report (January 31, 2020) from the Vice President, Strategy and Partnerships, for information.
Staff recommendation as filed
The Vice President, Strategy and Partnerships recommends that: 1. The Board of Directors of Toronto Atmospheric Fund receive Toronto Atmospheric Fund's 2019 Business Report (Attachment 1) for information.
TA5.4adopted
A 2020 Business Plan and Budget are presented for Board consideration and approval. It provides an overview of our priorities for the coming year, and outlines specific activities to be undertaken to achieve the stated objectives. The plan is guided by Toronto Atmospheric Fund's Strategic Directions and Theory of Change, understanding of the greenhouse gas emission sources and reduction opportunities across the Greater Toronto and Hamilton Area, perspectives on opportunities for climate policy implementation, and analysis of the successes and challenges experienced in our past work. It was designed and developed by the full staff team. Implementation of the Business Plan will be supported by the proposed 2020 Operating Budget of $5.6 million. Projected revenues are based on a maintaining the same performance on marketable securities as last year, with returns on the federal endowment starting only in the fourth quarter; returns on current and new Direct Investments; and a conservative estimate of external revenues. Expenditures are based on the available resources projected and compliance with the Payout Ratio established to protect the endowments. The budget reflects 13 core staff positions (incremental increase of 3) and ten term contract positions. The budget has been submitted for City approval with "net zero" impact on the City's budget.
The Board of Directors of Toronto Atmospheric Fund: 1. Approved Toronto Atmospheric Fund's 2020 Business Plan - Attachment 1 to the report (February 7, 2020) from the Chief Executive Officer, and Consolidated Operating Budget - Attachment 2 to the report (February 7, 2020) from the Chief Executive Officer.
Staff recommendation as filed
The Chief Executive Officer recommends that: 1. The Board of Directors of Toronto Atmospheric Fund approve Toronto Atmospheric Fund's 2020 Business Plan (Attachment 1) and Consolidated Operating Budget (Attachment 2).
TA5.5amended
Indicative Term Sheet for Toronto Atmospheric Fund's Federal Endowment
The Government of Canada, via the Federation of Canadian Municipalities (FCM), provided $350 million for an urban climate action program which includes $183 million for the Low Carbon Cities Canada (LC3) initiative incubated by Toronto Atmospheric Fund (TAF). This will provide endowments to TAF and six other centres modelled on TAF; the balance is for an endowment to be managed by the FCM's Green Municipal Fund (GMF). The seven LC3 centres, including TAF, have negotiated a non-binding Indicative Term Sheet which will guide the development of individual Funding Agreements with FCM. It applies only to the federal endowment funds. Much of this has been modelled on TAF's existing policies and practices. It is expected that TAF's Funding Agreement, which will be a tri-partite agreement between TAF, the City of Toronto (COT) and FCM, will be completed within a month. It will be tailored to include terms relevant to the protection of the Toronto and Ontario endowments and TAF's governance and accountabilities. Approval of the Funding Agreement by both TAF's Board and City Council will be required. It is recommended that TAF's Board approve the non-binding Indicative Term Sheet.
The Board of Directors of the Toronto Atmospheric Fund: 1. Authorized staff to approve and execute the non-binding Indicative Term Sheet for the FCM-LC3 funding agreements, substantially in the form presented by the Federation of Canadian Municipalities on February 3, 2020 and as summarized in Confidential Attachment 2 to the report (February 3, 2020) from the Chief Executive Officer, and subject to: a. satisfactory resolution of the outstanding negotiating points identified by Toronto Atmospheric Fund staff in Confidential Attachment 2 to the report (February 3, 2020) from the Chief Executive Officer; b. approval by Toronto Atmospheric Fund's solicitor, Toronto Atmospheric Fund's Chief Executive Officer, and the Ad Hoc LC3 Working Group established by the Board, consisting of Parminder Sandhu, Kim Marshall, Jennifer McKelvie, Karim Bardeesy, Andrew Dooner; and c. the condition that the final tri-partite Funding Agreement between Toronto Atmospheric Fund, the City of Toronto and the Federation of Canadian Municipalities will be presented to the Board of Directors for approval separately at a later date. 2. Directed that the confidential information contained in Confidential Attachments 1 and 2 to the report (February 3, 2020) from the Chief Executive Officer remain confidential in their entirety as they pertain to negotiations carried on or to be carried on by or on behalf of the Toronto Atmospheric Fund.
Staff recommendation as filed
The Chief Executive Officer recommends that the Board of Directors of the Toronto Atmospheric Fund : 1. Approve the Indicative Term Sheet as substantially summarized in Confidential Attachment 1, and direct the Chief Executive Officer to execute it. 2. Direct that the confidential information contained in Confidential Attachment 1 remain confidential in its entirety as it pertains to negotiations carried on or to be carried on by or on behalf of the Toronto Atmospheric Fund.
TA5.6adopted
Audit Committee - Minutes and Terms of Reference
The Audit Committee met on January 28, 2020 to review the scope of work for the 2019 audit as presented in the Audit Engagement Letter from Welch LLP, which was approved. This report provides minutes from the Committee meeting and recommends one amendment to the Audit Committee Terms of Reference.
The Board of Directors of the Toronto Atmospheric Fund: 1. Received Attachment 1 to the report (January 31, 2020) from the Chief Executive Officer - Minutes of the Audit Committee Meeting Held January 28, 2020 for information. 2. Approved amendment of the Audit Committee Terms of Reference as set out in Attachment 2 to the report (January 31, 2020) from the Chief Executive Officer.
Staff recommendation as filed
The Chief Executive Officer recommends that the Board of Directors of the Toronto Atmospheric Fund: 1. Receive Attachment 1: Minutes of the Audit Committee Meeting Held January 28, 2020 for information. 2. Approve amendment of the Audit Committee Terms of Reference as set out in Attachment 2.
TA5.7received
Minutes from the Investment Committee Meeting Held 12 December 2019
Minutes from the Investment Committee meeting held on December 12, 2019.
The Board of Directors of the Toronto Atmospheric Fund: 1. Received the item for information.
TA5.8adopted
Appointment to Toronto Atmospheric Fund's Investment Committee
Appointment of one member to Toronto Atmospheric Fund's Investment is recommended.
The Board of Directors of the Toronto Atmospheric Fund: 1. Appointed the individual listed in the Confidential Attachment to the report (January 31, 2020) from the Chief Executive Officer to the Investment Committee. 2. Instructed the City Clerk to make the appointee's name public once appointed by the Board, and direct that the balance of Confidential Attachment to the report (January 31, 2020) from the Chief Executive Officer be kept confidential as it deals with personal matters about identifiable persons. (February 14, 2020 - 9:52 a.m.) The individual appointed to the Investment Committee is Kiki Anadu.
Staff recommendation as filed
The Chief Executive Officer recommends that the Board of Directors of the Toronto Atmospheric Fund: 1. Appoint the individual listed in the Confidential Attachment to the Investment Committee. 2. Instruct the City Clerk to make the appointee's name public once appointed by the Board, and direct that the balance of Confidential Attachment be kept confidential as it deals with personal matters about identifiable persons.
TA5.9adopted
Based on due diligence demonstrating the potential for appropriate risk-adjusted return and strong alignment with Toronto Atmospheric Fund's mandate, the Investment Committee is recommending one (1) investment. The proposed investment is in compliance with the asset allocation range for Direct Investments (maximum 60 percent).
The Board of Directors of the Toronto Atmospheric Fund: 1. Approved an investment of up to $1,500,000 subject to the terms and conditions outlined by the Investment Committee at its meeting of January 30, 2020 and as set out in Confidential Attachment 1 to the report (January 30, 2020) from the Vice President, Impact Investing. 2. Directed the Vice President, Impact Investing to implement the investment to the satisfaction of Toronto Atmospheric Fund's Solicitor. 3. Directed that the confidential information contained in Confidential Attachment 1 to the report (January 30, 2020) from the Vice President, Impact Investing remain confidential in its entirety, as it contains commercial and financial information, supplied in confidence to the Atmospheric Fund, which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization.
Staff recommendation as filed
The Vice President, Impact Investing recommends that the Board of Directors of the Toronto Atmospheric Fund: 1. Approve an investment of up to $1,500,000 subject to the terms and conditions outlined by the Investment Committee at its meeting of 30 January 2020 and as set out in Confidential Attachment 1. 2. Direct the Vice President, Impact Investing to implement the investment to the satisfaction of Toronto Atmospheric Fund's Solicitor. 3. Direct that the confidential information contained in Confidential Attachment 1 remain confidential in its entirety, as it contains commercial and financial information, supplied in confidence to the Atmospheric Fund, which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization.
TA5.10adopted
Direct Investments - Update on Recent Approvals
This report provides an update on the status of four (4) investments approved by the Toronto Atmospheric Fund Board of Directors.
The Board of Directors of the Toronto Atmospheric Fund: 1. Directed that the confidential information contained in Confidential Attachments 1, 2, 3, and 4 to the report (January 31, 2020) from the Vice President, Impact Investing remain confidential in their entirety, as they contain commercial and financial information, supplied in confidence to The Atmospheric Fund, which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization.
Staff recommendation as filed
The Vice President, Impact Investing recommends that the Board of Directors of the Toronto Atmospheric Fund: 1. Direct that the confidential information contained in Confidential Attachments 1, 2, 3, and 4 remain confidential in its entirety, as they contain commercial and financial information, supplied in confidence to The Atmospheric Fund, which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization.
TA5.11adopted
Grants and Program Allocation Recommendations
At its January 24, 2020 meeting, the Toronto Atmospheric Fund Grants and Programs Committee recommended that the Board approve six grants with a combined value of $819,030 and five internal program allocations with a total value of $968,512. This report provides funding recommendations and minutes from the Committee meeting.
The Board of Directors of the Toronto Atmospheric Fund: 1. Received Attachment 1 to the report (January 31, 2020) from the Grants Manager - Minutes of the Grants and Programs Committee Meeting Held January 24, 2020 for information. 2. Approved the following grant requests funded jointly from the Ontario and City of Toronto endowments except where otherwise indicated: a. $240,000 over 26 months to Environmental Defence Canada to support the achievement of the Ontario government's climate targets, and to mobilize stakeholders to advance ambitious climate action in the Greater Toronto and Hamilton Area (GTHA) (funded from the City of Toronto endowment only). b. $170,000 over one year to Ontario Home Builders' Association to develop a manual for conducting air tightness testing in multifamily buildings, and to implement the manual at two pilot sites. c. $99,000 to Pembina Institute over nine months to develop an action plan for businesses to adopt electric vehicles into their freight fleets, as well as a policy guide on the infrastructure, plans and policies required to advance fleet electrification in the Greater Toronto and Hamilton Area (funded from the City of Toronto endowment only). d. $68,030 over five months to the Regional Municipality of Durham to develop a concept plan for a Durham residential home retrofit program, and a multi-year implementation plan (funded from the Ontario endowment only). e. $92,000 over two years to the Smart Freight Centre, University of Toronto to deliver and monitor an expanded off-peak delivery program, and to study the economic and greenhouse gas impacts of the program (funded from the City of Toronto endowment only). f. $150,000 over two years to Volta Research to develop a new software tool to simplify the energy modeling process, and to improve the depth of low-carbon retrofits that are recommended to residential building owners in the process. 3. Declined the following grant requests: a. $300,000 over two years to Building Owners and Managers Association (BOMA) to renew their race2reduce initiative which recognizes building performance leadership and facilitates sharing of best practices amongst industry members. b. $250,000 over 18-24 months to the City of Burlington to develop an Integrated Mobility Plan, which will establish a framework for a future transportation network that meets regional mode share targets. c. $37,651 over six months to Durham Regional Labour Council to engage decision-makers and local stakeholders on the viability of retooling the Oshawa auto assembly plant to build battery electric vehicles using a public enterprise model. d. $70,000 over two years to Mohawk College to create a digital platform that will engage Hamilton and Burlington residents in understanding, supporting, and advocating for climate change initiatives. e. $103,200 over 25 months to QUEST Canada to develop and disseminate an Electric Vehicle (EV) Charging in Multi-Family Unit Residential Building Toolkit, consisting of practical guidance for stakeholders to overcome challenges of installing EV chargers. f. $110,000 over six months to Urban Analytics Institute, Ryerson University to implement a study that quantifies the greenhouse gas emissions generated by the vehicle-for-hire industry in Toronto under three distinct regulatory scenarios. g. $132,641 over 18 months to Sheridan College to establish a monitoring and reporting system for greenhouse gas emissions in real-time along major transportation infrastructure in the Greater Toronto and Hamilton Area. 4. Approved the following project allocation requests to be funded jointly from the Ontario and City of Toronto endowments: a. $150,477 over one year to ensure Toronto Atmospheric Fund's impact investing team has the resources to reach the Target Portfolio goal of at least 30 percent of the Toronto Atmospheric Fund endowments in Direct Investments, while demonstrating leadership in impact investing. b. $51,675 over one year to enhance Toronto Atmospheric Fund's policy activities through the engagement of subject matter experts as consultants on key policy files, through adequate internal resourcing, and through relevant travel, communications, and events. c. $476,860 over one year to support Toronto Atmospheric Fund's TowerWise program in leading deep energy retrofits in multi-unit residential buildings that demonstrate feasibility and provide knowledge to inform policy and programs required for scale. d. $187,500 over one year to provide Toronto Atmospheric Fund with the resources to operationalize the Retrofit Delivery Centre, which will accelerate the implementation of high-quality energy retrofits. e. $102,000 over one year for Toronto Atmospheric Fund to hire a Climate Financing Advisor who will support Greater Toronto and Hamilton Area municipalities in securing funding (grants) and financing (loans and other repayable capital) for climate action.
Staff recommendation as filed
The Grants Manager recommends that the Board of Directors of the Toronto Atmospheric Fund: 1. Receive Attachment 1: Minutes of the Grants and Programs Committee Meeting Held January 24, 2020 for information. 2. Approve the following grant requests funded jointly from the Ontario and City of Toronto endowments except where otherwise indicated: a. $240,000 over 26 months to Environmental Defence Canada to support the achievement of the Ontario government's climate targets, and to mobilize stakeholders to advance ambitious climate action in the Greater Toronto and Hamilton Area (GTHA) (funded from the City of Toronto endowment only). b. $170,000 over one year to Ontario Home Builders' Association to develop a manual for conducting air tightness testing in multifamily buildings, and to implement the manual at two pilot sites. c. $99,000 to Pembina Institute over nine months to develop an action plan for businesses to adopt electric vehicles into their freight fleets, as well as a policy guide on the infrastructure, plans and policies required to advance fleet electrification in the Greater Toronto and Hamilton Area (funded from the City of Toronto endowment only). d. $68,030 over five months to the Regional Municipality of Durham to develop a concept plan for a Durham residential home retrofit program, and a multi-year implementation plan (funded from the Ontario endowment only). e. $92,000 over two years to the Smart Freight Centre, University of Toronto to deliver and monitor an expanded off-peak delivery program, and to study the economic and greenhouse gas impacts of the program (funded from the City of Toronto endowment only). f. $150,000 over two years to Volta Research to develop a new software tool to simplify the energy modeling process, and to improve the depth of low-carbon retrofits that are recommended to residential building owners in the process. 3. Decline the following grant requests: a. $300,000 over two years to Building Owners and Managers Association (BOMA) to renew their race2reduce initiative which recognizes building performance leadership and facilitates sharing of best practices amongst industry members. b. $250,000 over 18-24 months to the City of Burlington to develop an Integrated Mobility Plan, which will establish a framework for a future transportation network that meets regional mode share targets. c. $37,651 over six months to Durham Regional Labour Council to engage decision-makers and local stakeholders on the viability of retooling the Oshawa auto assembly plant to build battery electric vehicles using a public enterprise model. d. $70,000 over two years to Mohawk College to create a digital platform that will engage Hamilton and Burlington residents in understanding, supporting, and advocating for climate change initiatives. e. $103,200 over 25 months to QUEST Canada to develop and disseminate an Electric Vehicle (EV) Charging in Multi-Family Unit Residential Building Toolkit, consisting of practical guidance for stakeholders to overcome challenges of installing EV chargers. f. $110,000 over six months to Urban Analytics Institute, Ryerson University to implement a study that quantifies the greenhouse gas emissions generated by the vehicle-for-hire industry in Toronto under three distinct regulatory scenarios. g. $132,641 over 18 months to Sheridan College to establish a monitoring and reporting system for greenhouse gas emissions in real-time along major transportation infrastructure in the Greater Toronto and Hamilton Area. 4. Approve the following project allocation requests to be funded jointly from the Ontario and City of Toronto endowments: a. $150,477 over one year to ensure Toronto Atmospheric Fund's impact investing team has the resources to reach the Target Portfolio goal of at least 30 percent of the Toronto Atmospheric Fund endowments in Direct Investments, while demonstrating leadership in impact investing. b. $51,675 over one year to enhance Toronto Atmospheric Fund's policy activities through the engagement of subject matter experts as consultants on key policy files, through adequate internal resourcing, and through relevant travel, communications, and events. c. $476,860 over one year to support Toronto Atmospheric Fund's TowerWise program in leading deep energy retrofits in multi-unit residential buildings that demonstrate feasibility and provide knowledge to inform policy and programs required for scale. d. $187,500 over one year to provide Toronto Atmospheric Fund with the resources to operationalize the Retrofit Delivery Centre, which will accelerate the implementation of high-quality energy retrofits. e. $102,000 over one year for Toronto Atmospheric Fund to hire a Climate Financing Advisor who will support Greater Toronto and Hamilton Area municipalities in securing funding (grants) and financing (loans and other repayable capital) for climate action.
TA5.12received
Creating Training and Employment Opportunities Through Green Construction Initiatives
Adam Zweig, Enterprise Manager at Building Up - a non-profit construction contractor - will present an overview of how the Building Up model works to support people with barriers to employment, with a review of their work on Toronto Atmospheric Fund retrofit projects.
The Board of Directors of the Toronto Atmospheric Fund: 1. Received the item for information.
TA5.13adopted
Executive Compensation and Performance Review Committee Update
This report provides an update on the Executive Compensation and Performance Review Committee activity, namely undertaking the CEO's performance review, and recommends appointment of new Committee members.
The Board of Directors of the Toronto Atmospheric Fund: 1. Appointed the following members to the Executive Compensation and Performance Review Committee: - Parminder Sandhu (Board Chair) - Karim Bardeesy (Citizen member), and - Shelley Carroll (City Council member).
Staff recommendation as filed
The Chair recommends that the Board of Directors of the Toronto Atmospheric Fund appoint the following members to the Executive Compensation and Performance Review Committee: - Parminder Sandhu (Board Chair) - Karim Bardeesy (Citizen member), and - Shelley Carroll (City Council member)