Report to/Rapport au :
Planning and Environment Committee /
Comité de l’urbanisme et de l’environnement
and Council / et au Conseil
Submitted by/Soumis par : Environmental Advisory
Committee /
Comité consultatif sur l’environnement
Contact Person/Personne ressource : Kelly Sammon,
Coordinator / Coordonnatrice,
Environmental
Advisory Committee / Comité consultatif sur l’environnement
(613) 580-2424 Ext / poste, 28136 /
Kelly.Sammon@ottawa.ca
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SUBJECT: |
The
creation of an Ottawa Sustainability Fund
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OBJET : |
la création d’un Fonds
d’Ottawa pour la durabilité de l’environnement |
REPORT
RECOMMENDATIONS
That the Environmental
Advisory Committee (EAC) recommend
that the Planning and Environment Committee recommend that City Council:
1. Support
the creation of an Ottawa Sustainability Fundthis initiative;
2. Approve an initial and sole donation of not less than
$10,000 to initialize the Fund with the goal of establishing a multimillion-dollar
endowment over time and from sources other than that of the tax base;
3. Allocate the one time funding from the Community
Environmental Project Grants Program, or other appropriate and available
sources; and,.
4. Direct
that any donation be delivered to the EAC or Ottawa Community Foundation in a
timely manner.
RECOMMENDATIONS
DU RAPPORT
Que
le Comité consultatif sur l’environnement (CCE) préconise au Comité de
l’urbanisme et de l’environnement de recommander au Conseil :
1. d’appuyer la création
d’un Fonds d’Ottawa pour la durabilité de l’environnementthis
initiative;
2. d’approuver
une donation initiale unique d’un minimum de 10 000 $ afin de lancer le Fonds
dans le but d’établir au cours des années une fondation de plusieurs millions
de dollars qui proviendraient d’autres sources que les taxes;
3. d’allouer ce
financement unique du Programme de subventions aux projets communautaires
reliés à l’environnement ou d’autres sources disponibles pertinentes;.
4. de demander que tout don soit fait au CCE ou à la
Fondation communautaire d’Ottawa.
BACKGROUND
Over the past few months, the Environmental Advisory Committee (EAC) has discussed the creation of an Ottawa Sustainability Fund and the positive impacts it would have on a sustainable community.
DISCUSSION
At its 13 October 2005 meeting, the Environmental Advisory
Committee approved the following motion with respect to the creation of an Ottawa Sustainability Fund:
Whereas the City of Ottawa
is the nation’s Capital and should be the leader in innovative and forward
looking municipal policy development;
And Whereas the City of
Ottawa has outlined sustainable development as a priority through the Ottawa
20/20 environmental strategy, and the Air Quality and Climate Change Management
Plan;
And Whereas the development of an Ottawa Sustainability Fund will provide financial support to initiatives and organizations that enhance the sustainability of the City of Ottawa, from a source other than the municipal tax base;
And Whereas the Fund will focus its efforts on
providing financial resources to value-added projects which address: climate
change, air quality, sustainable land use, sustainable waste management and
water issues, in the City of Ottawa;
And Whereas the Fund will be
housed as an ‘Advised Fund’ within the Ottawa Community Foundation;
And Whereas the EAC will
take proactive measures to quickly initialize the fund with the Community
Foundation and assemble an advisory team based on the attached proposal;
And Be it resolved that the
EAC recommends City Council provide a motion of support for this initiative;
And Be it further resolved
that the EAC requests an initial, and sole, donation of not less than $10,000
to initialize the Fund with the goal of establishing a multimillion dollar
endowment over time and from sources other than that of the tax base;
And Be it further resolved
that the EAC requests this initial, and sole donation, by the City be allocated
from the 2005 Community Environmental Project Grants
Program, or other appropriate and available sources;
And
Be it further resolved that if City Council approves the donation that it be
delivered to the EAC or Ottawa Community Foundation in a timely manner.
CONSULTATION
Planning and Growth Management Department
Staff
fully supports the creation of a fund that will provide financial support to initiatives and organizations that enhance
the sustainability of the City of
Ottawa, from a source other than the
municipal tax base. With Council
approval, the initial $10,000 contribution from the City that the Environmental
Advisory Committee is requesting could be taken from Internal Order 902353,
Community Environmental Project Grants.
Beginning in 2005 the funding for these grants was moved to the
operating budget, but this capital account has a small balance of $16, 637 from
previous years.
Legal Services Branch
If the City is to
contribute $10,000 to a fund which has not yet been established, it should
require some form of agreement - which could be in the form of an Memorandum of
Understanding (MOU) with the Ottawa Community Foundation (OCF) which outlines
the intended use of the monies and stipulates that the monies would be returned
within a defined period (for example one to two years) should the fund, for
whatever reason, fail to meet certain basic benchmarks as currently set out in
the OCF Mandate.
The Legal Services Branch will report back to Committee and Council
within a 2 to 3 month timeframe, advising on implementation of the MOU with the
Ottawa Community Foundation and on guidelines for the use of the fund.
FINANCIAL IMPLICATIONS
With Council approval, the initial
$10,000 contribution from the City requested by the Environmental Advisory
Committee is available from Internal Order 902353, Community Environmental Project
Grants.
SUPPORTING DOCUMENTATION
Document 1: EAC Ottawa Sustainability Fund Summary Sheet and Proposal for Start-up Funding
DISPOSITION
The Committee Coordinator will inform the Environmental Advisory Committee of Committee and Council’s decision on the recommendations.
Financial Services will forward the initial $10 000 contribution from
the City to the Ottawa Community Foundation once the MOU is approved by
Council.
Document 1
Ottawa Sustainability Fund
Summary Sheet & Proposal for Start-up Funding:
Subject: The creation of an Ottawa
Sustainability Fund
Purpose: To
provide financial support
to initiatives and
organizations that enhance the sustainability of the City of Ottawa from a source other than the municipal tax base. Initiatives that enhance sustainability, for
the purpose of the Fund, are defined as any initiatives that improve
environmental integrity, economic stability or growth, and social well-being in
the City.
Scope: To ensure a continuous source
of funding to enable initiatives that focus on:
§
Reducing Ottawa’s impact on climate
change,
§
Improving Ottawa’s air quality,
§
Addressing water issues, both urban
and rural,
§
Promoting sustainable land use in
the City of Ottawa,
§
Promoting waste reduction and
sustainable waste management in the City of Ottawa,
§
Other projects or initiatives that
enhance the sustainability of the City of Ottawa.
Why a Fund is Needed?:
The City of Ottawa is Canada’s
capital city and has committed itself to a forward looking agenda with respect
to the environment. Further, as Canada’s capital city it should be the leader at the
municipal level on initiatives that promote environmental integrity while
maintaining or enhancing economic growth. The Ottawa Sustainability Fund will
contribute to the attainment of this goal.
Secondly, the City of Ottawa has outlined a number of environmental priorities in its Ottawa 20/20 plan and its Air Quality and Climate Change Management Plan. The financial resources needed to fulfill the goals put forth in these documents exceed the City’s ability to fund initiatives to meet these goals.
Lastly,
given the constant challenge of allocating municipal resources to environmental
initiatives, a fund, at arms length from the municipality, and funded on an
ongoing basis from a source other than the municipal tax base, will enable
projects and initiatives that enhance Ottawa’s sustainability to be pursued and
supported.
Some Potential Benefits:
§
Improve Ottawa’s reputation as a leader in urban
sustainable development and promote Ottawa as a ‘Model’ Capital,
§
Increased capacity to fund programs
that both meet the City’s long term environmental plans and improve the City’s
sustainability,
§
Creation of employment and
utilisation of volunteer expertise by providing resources to local experts
willing to undertake specific projects that fulfill the scope of the Fund
(listed above),
§
Contribute to cleaner air,
§
Promote waste reduction through the
three Rs; Reduce, Reuse and Recycle,
§
Encourage and promote local experts and
expertise,
§
Raise the level of awareness among the public
and city officials on sustainability issues,
§
Increase community participation. As the fund
would be at arms length from the City, members of the community and donors
would be involved in directing funding based on the scope of the Fund,
§
Save the City money by allowing all stakeholders
in the municipality; officials, civil society and the private sector to be part
of making Ottawa a more sustainable community in which to live,
§
Enable projects that have the potential to improve
the liveability of the City for all citizens through the creation of healthy
and safe communities.
Fund
Design:
The EAC has conducted
extensive examination of various models for such a Sustainability fund. This
research has included weighing the benefits and detriments of different
financial governance models including the high-profile Toronto Atmospheric Fund
(see highlights in addendum below) and other fully independent funds.
Ultimately, for the
City of Ottawa, the EAC believes that an Ottawa Sustainability Fund housed
within the Community Foundation of Ottawa would be the best option. The OSF
would be created as an ‘Advised Fund’ within the Community Foundation of
Ottawa.
The Community
Foundation of Ottawa is an independent centre for community philanthropy,
serving as a resource for addressing issues and connecting donors with granting
opportunities. It plays a major role in funding initiatives and organizations
that address issues of local concern. It attracts and manages a growing endowment,
the invested earnings of which provide grants that will be available in
perpetuity to enhance the quality of life for all citizens in the City of
Ottawa. The fund currently maintains assets of over $80 million and provides
over $4 million in annual funding.
Creating the
Ottawa Sustainability Fund as an Advised Fund within the Community Foundation
allows designated advisors to advise the Foundation on where the monies are to
be directed and for what purpose. It is envisioned that such an advisory team
for the Sustainability Fund will consist initially of:
§
One member of the private sector (possibly
appointed by OCRI)
§
One member of City staff or Council
§
Three members of the general public with
experience in fundraising or one or more areas of the OSF mandate
§
One member of the Ottawa Environmental Advisory
Committee
It is envisioned that
this advisory team will choose amongst its members a chair and vice-chair to
serve as the principal contact points for the fund.
Benefits
and Challenges using this model:
§
Permanent home for the fund,
§
Funds allocated by established financial
management experts,
§
Can solicit applications for funding or fund
groups directly,
§
Will involve local decision makers, corporate
leaders and the general public,
§
Ongoing funding will never come from Municipal
funds or the tax base although the City may wish to be a partner in projects
supported by the fund where a project is consistent with immediate and
important initiatives being taken by the City.
§
Securing start up funds,
§
Growing the endowment to a significant capital
base ($5-10+ million long-term). Target donors would be developers, businesses
and individual citizens,
§
Currently a Community Foundation Advised Fund
can only provide monies to Canadian Revenue Agency approved charities which
includes the City of Ottawa.
Way Forward: In order to ensure that the Ottawa
Sustainability Fund becomes a reality ‘start up’ funding will be needed. The
Environmental Advisory Committee recommends that the City provide a minimum
of $10,000 in start-up money for the
fund from the 2005 Community Environmental Project Grants Program.
Once the fund
has been activated an advisory team will be recruited and based on the guidance
and advice of the Community Foundation, the governance and operating principles
of the fund will be established and a fundraising strategy will be developed.
Addendum: Highlights of The Toronto Atmospheric Fund:
·
Funded projects totalling nearly $6
million. TAF also invested $18 million in City projects as loans,
·
Reduced CO2 emissions by 225,000
tonnes,
TAF loans have saved the City $17.5 million - over $2.7 million annually - in cumulative energy and maintenance costs,
Upgrades to 100 City-owned buildings resulted in 8% reduction in corporate energy use since 1990,
·
Installation of (30k) energy
efficient street lamps and installation of 6,000 new lamps in poorly lit
neighbourhoods,
·
Naturalization of 100 school grounds
through Cool Schools program,
·
Established heat-health alert system
that has saved 40 lives each summer during extreme heat waves,
·
Demonstration project of clean
technologies including solar cells, hybrid cars & electric bicycles,
The City of Toronto was able to create such a fund by using a portion of the proceeds from the sale of a specific property owned by the City to fund an endowment known as the Toronto Atmospheric Fund.