City Council on November 27, 28 and 29, 2012, adopted the following:

1.         City Council request the City Manager to consult with Toronto Hydro and review and report to Council on specific long-range strategies and objectives of Toronto Hydro in relation to the City’s environment and energy objectives.

2.         City Council request the City Manager to consult with the Toronto Atmospheric Fund (TAF) and review and report to Council on specific long-range strategies and objectives for the TAF program in relation to the City’s environment and energy objectives.

3.         City Council assume the powers for the investment of Toronto Atmospheric Fund (TAF) funds not immediately required for TAF’s objects, attendant liabilities, and TAF Board by-laws and resolutions related to the assumed powers by:

a.         rescinding the delegation of certain powers to the Toronto Atmospheric Fund (TAF) and reinstating the authority of the City Treasurer to manage the investment of the TAF funds not immediately required for TAF’s objects, pertaining to the investment of fixed income marketable securities and cash reserves, under Subsections 8(4), 8(7) and 13(1) of the Toronto Atmospheric Fund Act, 2005 (TAF Act), Section 145 of the City of Toronto Act, 2006 (COTA) and Section 2 of O.Reg 589/06 under COTA, to be effective upon the enactment of the requisite by-law;

b.         amending the Council-approved investment objectives and principles for the Toronto Atmospheric Fund (TAF):

i.          to provide for the management by the City Treasurer of public market investments (fixed income marketable securities and cash reserves) of the TAF funds not immediately required for TAF’s objects; and

ii.          to revise the diversified asset mix in TAF’s Council-approved investment objectives and principles such that:

1.          a maximum of 35 percent is available for Public Equities;

2.         a minimum of 20 percent is held as Fixed Income which investment along with cash reserves will be managed by the City Treasurer utilizing the City’s legislated investment powers and the City’s investment strategies as provided for in Subsections 8(3), (4) and (7) of the TAF Act;

3.          a maximum of 5 percent is available for Private Pooled Equities; and

4.         a maximum of 60 percent is available for Private Direct Investments including senior debt, subordinated debt, mortgages, debentures, performance contract financing, purchase order financing, options, securities, loans and loan guarantees, and with prior Council approval required for any transaction above $2 million;

iii.         and that the City Manager report back annually to the Executive Committee on results of the Toronto Atmospheric Fund's investments and loans.

c.         delegating to the City Manager, Deputy City Manager and Chief Financial Officer and the Toronto Atmospheric Fund (TAF), authority to revise TAF’s investment objectives and principles to give effect to the changes in Parts 3a and 3b above; and

d.         granting authority to the Deputy City Manager and Chief Financial Officer, the City Treasurer and the Toronto Atmospheric Fund (TAF) board to implement the transition from the current to the new diversified asset mix and management responsibility for TAF funds effective as early as reasonably possible while minimizing penalties or losses, but no later than two years from adoption in order to give effect to Part 3, and allowing any existing investments made under the 2010 TAF investment objectives to be deemed authorized and valid during the transition.

4.         City Council enhance Toronto Atmospheric Fund’s role to provide grants under Subsection 5(2) of the Toronto Atmospheric Fund Act by rescinding Council policies requiring Toronto Atmospheric Fund to provide mandatory funding for City projects and to fund the City’s participation fees in the Greater Toronto Area Clean Air Council (GTA-CAC), the latter obligation to be absorbed by the Environment and Energy Office.

5.         City Council reinforce the independence of the Clean Air Partnership (CAP), established under Sections 17 and 19 of the Toronto Atmospheric Fund Act as a not-for-profit charitable organization that functions independently from the City, by amending governance provisions under Subsection 18(2) of the Toronto Atmospheric Fund Act, 2005, to be effective upon the enactment of the requisite by-law:

a.         City Council rescind the limited authority delegated to the Toronto Atmospheric Fund to determine certain Clean Air Partnership governance matters including the appointment of directors to the board of Clean Air Partnership.

b.         City Council delegate to Clean Air Partnership under Subsection 18(2) of the Toronto Atmospheric Fund Act the powers to determine all of the governance matters set out in Subsection 18(1) of the Toronto Atmospheric Fund Act, subject to the Clean Air Partnership board having good governance practices in place including:

i.          holding open meetings;

ii.          publishing annual audited financial statements;

iii.         having a Governance Committee of the board;

iv.         establishing a nominations process to the board;

v.         maintaining the size of the board at no less than 3 directors; and

vi.         having a policy that makes employees of the City and its agencies and corporations ineligible for appointment to the board of the Clean Air Partnership.

6.         City Council request the Province to amend O.Reg 589/06, Dissolution of and Assumption of Powers of Local Boards, by deleting from Section 3 any reference to the Toronto Atmospheric Fund Foundation (currently the Clean Air Partnership), so that the Clean Air Partnership board is not deemed a local board by that regulation.

7.         City Council authorize the City Solicitor to introduce a by-law or by-laws to give effect to Parts 3 and 5 above.

8.         City Council request that the City Manager in consultation  with Toronto Atmospheric Fund, revise the Toronto Atmospheric Fund Relationship Framework agreement to reflect City Council's decision.

9.         City Council receive for information the summary of the administrative restructuring of environment and energy functions, forming Part A of the report (September 24, 2012) from the City Manager.

10.       City Council direct that the report (September 24, 2012) from the City Manager be forwarded to the Boards of the Toronto Atmospheric Fund, Clean Air Partnership and Toronto Hydro for their information.

11.       City Council request the City Manager to review the grants program of the Toronto Atmospheric Fund (TAF) and report to the Executive Committee in the first quarter of 2013.

12.       City Council direct the City Manager to include the climate modelling study undertaken by the Toronto Environment Office with SENES consultants Ltd. when determining the specific long-range strategies and objectives of the amalgamated Toronto Environment and Energy Efficiency Office.

13.       City Council direct that, in addition to promoting environmental sustainability, energy efficiency and conservation within the City’s internal operations, the new Environment and Energy Office continue to serve the City by developing and implementing environmental policies and programs that promote sustainable development and the growth of the green economy; providing research and policy expertise; establishing and leveraging policy and program partnerships with internal and external stakeholders including City ABCCDs, other orders of government, ENGOs and businesses; and delivering tools and resources to engage Toronto residents and businesses in adopting sustainable lifestyles and business practices.

14.       City Council refer the following motion to the Budget Committee for consideration:

             Moved by Councillor Bailão

That City Council direct the City Manager to reinvest any savings that result from the administrative restructuring of environment and energy functions (estimated at approximately 5 percent) to continue achieving environmental and energy goals.