Business Plan, along with considering any “go-to-market” strategies that would mitigate prevailing market conditions.

Creation of an Entity in which to Administer the Program

The Business case recommends that an Entity be created to administer R-DEER. It is proposed that the Entity would be a municipal services company similar in nature to a utility company (ex. Enwin Energy) where the city would be a major stakeholder and remain involved in oversight as well as corporate direction. S. 203 of the Municipal Act and O.Reg. 599/06 allows Ontario municipalities to establish a Municipal Services Corporation (MSC). An MSC is a corporation whose shares are owned by a municipality, or a municipality and one or more other public-sector entities. A MSC can only provide a system, service or thing that the municipality could provide. Currently the City provides and administers local improvement programs related to the construction of municipal infrastructure on municipal lands. To date the City has not undertaken local improvements related to private infrastructure on private property.

While the consultant identified several advantages (identified on page 6 of the report) to the formation of an Entity for the delivery of the R-DEER program, it is acknowledged that significant further due diligence on both the legal and financial implications of this structure is required.

LIC Financing

Property-assessed financing has the distinct advantage of tying the efficiency investment to the property, mitigating the risk of the homeowner that their payback period is longer than the time they remain (or intend to remain) in the home. Attractive interest rates and borrowing terms can be achieved for homeowners while reducing or eliminating their up-front capital costs. The business case outlines that under this program, the City would collect LIC payments on behalf of the Entity from homeowners participating in the retrofit program by passing an LIC By-law and entering into an agreement with the MSC. The Cities of Guelph and Toronto have developed LIC By-laws to allow for energy efficiency investments on private properties. The forthcoming report to Council will further investigate the risks and benefits of this type of financing method, inclusive of the related by-laws and others currently in the works at other municipalities.

Business Plan

While the Business Case, attached in the appendix of this report, works to address the overall opportunity for this type of program as well as its positive financial and environmental impacts on the community, Administration acknowledges that there are a number of additional areas which need to be addressed. Any future Business Plan must consider, in a detailed fashion, the following areas.