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HomeMy WebLinkAboutPLN 46-22Report to Council Report Number: PLN 46-22 Date: December 5, 2022 From: Kyle Bentley Director, City Development & CBO Subject: Collaboration on Whitby Green Standard Demonstration Project - Memorandum of Understanding - File: D-7001-022 Recommendation: 1. That Report PLN 46-22 of the Director, City Development & CBO, regarding a partnership opportunity for the Whitby Green Standard Demonstration Project, be received; 2. That Mayor and City Clerk be authorized to execute a Memorandum of Understanding between the Town of Whitby, City of Pickering, Region of Durham, Mattamy Development Corporation, and Clean Air Partnership as set out in Attachment #1 of this report, subject to the terms and conditions satisfactory to Director, City Development, Director, Corporate Services & City Solicitor and Director, Finance & Treasurer; 3. That the appropriate City staff be directed to take the necessary actions as indicated in this report; and 4. That staff be directed to report back with a summary of the results at the conclusion of the project. Executive Summary: In 2021, Pickering staff applied for, and were successful in securing funds from, The Atmospheric Fund (TAF) to offset the consulting costs for the Integrated Sustainable Design Standards project (ISDS). Initially, a component of this project included researching the financial costs associated with building to more advanced sustainable performance measures. During the grant submission process, TAF recommended that the budget requested be reduced, and that the City collaborate with the Town of Whitby for the costing study component, since the Town was seeking similar funding for their own study. Anticipating that this arrangement could be mutually beneficial, the City of Pickering focused its grant application on developing the ISDS, while the Town of Whitby led a proposal for an in-depth costing study. City staff provided the Town of Whitby with a letter of support for their grant application. TAF supported Pickering’s grant submission and staff proceeded with a process to develop the ISDS. On September 20, 2022, Council adopted the City of Pickering’s Integrated Sustainable Design Standards (ISDS) as per Council Resolution #982/22. These standards are a tool to assist the City in implementing and achieving the vision of a sustainable community through the development review process. PLN 46-22 December 5, 2022 Subject: Collaboration on Whitby Green Standard Demonstration Project Page 2 TAF also supported the Town of Whitby’s Green Standard Demonstration Project grant submission to undertake a costing study. The goal of the project is to measure the costs and benefits of integrating the three voluntary tiers of the Whitby Green Development Standards at the design, construction, and occupancy stages, for low-rise residential development. The project will allow for a better understanding of the challenges, opportunities, costs, and benefits developers face when building to advanced sustainability design criteria. The results could inform incentive programs to help address and overcome these barriers, as well as future updates to green standards. The project partners include the Town of Whitby, City of Pickering, Region of Durham, Clean Air Partnership, and Mattamy Development Corporation. Natural Resources Canada is supporting the project through use of its Cost Benefit Analysis Tool. The project partners/parties are being asked to enter into the attached Memorandum of Understanding (MOU). The MOU has been reviewed by appropriate City of Pickering staff from a legal and insurance perspective. The MOU outlines the project’s key outcomes, participant’s roles, and funding sources, among other matters. The City of Pickering is not providing funding for the project. Pickering’s contribution is through in-kind staff support to: • be a member of the project team; • assist with funding applications, if required; • assist with stakeholder engagement and sharing results; • engage Pickering developers by seeking volunteers to test the costing model tool and reflect on region-wide applicability of the tool; and • be a resource regarding green development standards. Financial Implications: Not applicable to this report. Discussion: In Durham Region, the building sector is responsible for 40% of total carbon emissions. As Durham Region is slated for significant growth, it is essential that the associated development is carried out in a sustainable manner. To support this goal, City of Pickering Council recently adopted the Integrated Sustainable Design Standards (ISDS), which will replace the 2007 Sustainable Development Guidelines on January 1, 2023. Pickering’s ISDS were drafted following a comprehensive review process, involving extensive consultation, engagement, and outreach with many stakeholders, including the development community, key agencies, Greater Toronto and Hamilton Area municipalities, and the public. During this consultation, one of the concerns expressed by the development community was that costs to implement sustainable measures were perceived to be high. The Whitby Green Standard Demonstration Project seeks to verify the actual challenges, costs, opportunities and benefits of building more sustainable homes. PLN 46-22 December 5, 2022 Subject: Collaboration on Whitby Green Standard Demonstration Project Page 3 Project Phases The project is intended to be completed in four phases. Phase 1: Design and Modelling (2022-2023) Whitby will retain an independent third-party consultant to act as Project Manager, and assist with coordination among all parties. The parties will develop a full costing model for designing and building 3 to 6 low-rise detached residential homes (Demonstration Homes) that will meet the Whitby Green Standard (WGS) voluntary tiers (Tier 2, Tier 3 and Tier 4), and leverages the Natural Resources Canada Cost Benefit Analysis Tool. Phase 2: Construction (2024) Mattamy will construct the Demonstration Homes at its own cost in Whitby. Together with the Town of Whitby’s Project Manager, Mattamy will measure the actual design and construction costs of each Demonstration Home and share these costs with the Project Manager to allow for calibration against the costing model. Phase 3: Monitor (2025) Led by the Town of Whitby’s Project Manager, in collaboration with the end-user owners of the Demonstration Homes, the parties will monitor the homes’ performance over a period of one year of occupancy, and measure and calculate the actual real-life costs, greenhouse gas emission reductions, and other relevant metrics associated with each of the homes. Phase 4: Report (2025-2026) Led by the Town of Whitby’s Project Manager, the parties will develop a report summarizing the results of the project. The parties will develop potential solutions to any issues or challenges identified in the report, and will develop an incentives program and/or municipal toolkit to support the continued implementation of the WGS. The parties will share the project’s outcomes and recommendations with other municipalities through the Clean Air Council network. Project Partners and Roles The Town of Whitby received support for this project through the following: The Atmospheric Fund – funding partner for $250,000.00 Through this partnership, the Atmospheric Fund will provide financial and technical support in developing and evaluating green standard performance. Regional Municipality of Durham – funding partner for $10,000.00 Durham Region will provide financial support for the engagement process while providing technical expertise related to climate mitigation and planning. PLN 46-22 December 5, 2022 Subject: Collaboration on Whitby Green Standard Demonstration Project Page 4 City of Pickering – proposed in-kind support as municipal partner The City of Pickering will assist with stakeholder engagement, funding applications (if required) and sharing results. The City will also be a resource about green standards. The City may also connect with developers in Pickering to seek volunteers to test the costing model that will be developed as part of this project. Clean Air Partnership – in-kind support The Clean Air Partnership will lead the delivery of an engagement process with region-wide municipal and development stakeholders. Natural Resources Canada – in-kind support Natural Resources Canada will provide in-kind support and use its Cost Benefit Analysis Tool. Mattamy Development Corporation – developer partner Mattamy Development Corporation will cover the incremental costs of developing advanced sustainability-performing homes. Town of Whitby staff are exploring external grant opportunities that may be used to offset the incremental construction/equipment costs, and for post-construction monitoring equipment. If Pickering Council authorizes the execution of the MOU, City staff will collaborate with the Town of Whitby and project partners to undertake this initiative. By working together, Pickering can support the project by sharing information, engaging with project partners and promoting the costing model to the development community. Although the costing study will focus on the WGS tiers, the findings around the actual costs, return on investment, and homeowner benefits associated with sustainable development are not unique to Whitby, Pickering or Durham Region. The relevancy of this work far exceeds these borders. Due to the similarities of municipal green standards and comprehensive nature of this project, the process and findings will benefit the building industry as a whole and municipalities across the GTHA, who are engaged in similar dialogues around sustainable community development. Attachment: 1. Draft Memorandum of Understanding WGS Demo Project PLN 46-22 December 5, 2022 Subject: Collaboration on Whitby Green Standard Demonstration Project Page 5 Prepared By: Original Signed By Chantal Whitaker, BESc (Hons), CSP-P Manager, Sustainability & Strategic Environmental Initiatives Approved/Endorsed By: Original Signed By Kyle Bentley, P.Eng. Director, City Development & CBO CW :ld Recommended for the consideration of Pickering City Council Original Signed By Marisa Carpino, M.A. Chief Administrative Officer 1 of 13 Attachment #1 to Report PLN 46-22 MEMORANDUM OF UNDERSTANDING FOR THE WHITBY GREEN STANDARD DEMONSTRATION PROJECT This memorandum of understanding is dated the 26th day of September 2022 B E T W E E N: THE CORPORATION OF THE TOWN OF WHITBY (“Whitby”) -and - MATTAMY DEVELOPMENT COPORATION (“Mattamy”) -and - THE REGIONAL MUNICIPALITY OF DURHAM (“Durham”) -and - THE CITY OF PICKERING (“Pickering”) -and - CLEAN AIR PARTNERSHIP (“CAP”) INTRODUCTION 1.In 2020, Whitby approved a tiered Green Development Standard (the “Whitby Green Standard” or “WGS”) to increase the uptake of sustainable design criteria in new development, with a focus on low-rise development (available here www.whitby.ca/greenstandard). During development of the Whitby Green Standard, the development community raised concerns regarding the impact on housing costs and challenges associated with the availability of skilled tradespersons and technology to implement, and the reliability of the materials to build according to, the Whitby Green Standard. 2.Whitby, Mattamy, Durham, Pickering, and CAP (collectively, the “parties”) have agreed to collaborate on a demonstration project that measures the costs and benefits of integrating the three voluntary tiers (Tiers 2-4 of the WGS) of Green 2 of 13 Development Standards at the design, construction and occupancy stages of low-rise residential development (the “Project”). 3. The Project will allow for a better understanding of the challenges, opportunities, costs and benefits developers face when building to advanced sustainability design criteria. Results will inform incentive programs that help address and overcome these barriers, helping to accelerate the uptake of sustainable design criteria and building energy-efficient communities. 4. This memorandum of understanding (“MOU”) establishes the framework by which the parties intend to cooperate and complete the Project. This MOU does not provide the parties or any third parties with any legal rights, nor does it incur any legal obligations, except as relating to Confidential Information as set out in paragraph 16, and liability and indemnification as set out in paragraphs 24 and 25 herein. However, the parties may enter into one or more further agreements with each other on terms to be negotiated in good faith, in order to facilitate completion of the Project. PROJECT GOAL 5. The goal of the Project is to help calculate the costs and benefits of municipal Green Development Standards on the design, construction and occupancy of new low-rise homes. KEY OUTCOMES 6. The following outcomes will guide the parties in the development and implementation of the Project (the items identified below in Sections 6(a)-(g) inclusive shall be referred to collectively as the “Key Outcomes”): Expand Green Development Standards a) To assist other municipalities in the uptake of their own green development standards by providing a better understanding and measured benefits of advanced sustainability criteria and building towards net-zero carbon. 3 of 13 Inform Builders b) To support the development community in understanding the associated costs, technologies, skills, and marketing required to implement and build to advanced building standards. Build Incentive Programs c) To inform the development of incentive programs that will encourage the development community to adopt the voluntary tiers of Green Development Standards Bridge the Skills Gap d) To inform local education institutions of skilled trade shortages and education gaps to help inform and advance skilled trades’ college curriculum. Transparent Analysis e) To calculate the cost impact of building to advanced energy efficient standards and compare those costs with alternative strategies, such as supporting deep home energy retrofits in future years. Greenhouse Gas Reductions f) To calculate the actual greenhouse gas emission savings of designing, building, and occupying advanced WGS homes. Inform Homeowners g) To educate the community and potential homeowners of the long-term costs and benefits of owning advanced energy efficient and net-zero energy homes. PROJECT OUTLINE 7. The Project will proceed in accordance with the following phases: a) Phase 1: Design and Modelling (2022-2023) Whitby will retain an independent third-party consultant (the “Consultant”) to act as project manager and assist with coordination among all parties. The parties will develop a full costing model for designing and building 3-6 low-rise detached 4 of 13 residential homes (the “Demonstration Homes”) that will meet the WGS voluntary tiers (Tier 2, Tier 3 and Tier 4), that leverages the Natural Resources Canada Cost benefit analysis tool. b) Phase 2: Construction (2024) Mattamy will construct the Demonstration Homes at its own cost. Together with the Consultant, Mattamy will measure the actual design and construction costs of each Demonstration Home and share these costs with the project manager to allow for calibration against the costing model c) Phase 3: Monitor (2025) Lead by the Consultant, in collaboration with the end-user owners of the Demonstration Homes, the parties will monitor the homes’ performance over a period of 1 year of occupancy and measure and calculate the actual real-life costs, greenhouse gas emission reductions, and other relevant metrics associated with each of the homes. d) Phase 4: Report (2025-2026) Lead by the Consultant, the parties will develop a report summarizing the results of the Project. The parties will develop potential solutions to any issues or challenges identified in the report and will develop an incentives program and/or municipal toolkit to support the continued implementation of the WGS. The parties will share the Project’s outcomes and recommendations with other municipalities through the Clean Air Council Network. THE PROJECT TEAM 8. The primary Project team consists of the parties to this MOU, being Whitby, Pickering, Durham, Clean Air Partnership, and Mattamy. THE PARTIES’ ROLES 9. Whitby will focus on all Key Outcomes and: • be the overall Project lead; • enter into a grant funding agreement with TAF (the “TAF Grant Agreement”); 5 of 13 • create a project charter; • develop the RFP for and procure the Consultant; • be the lead for funding applications; • be responsible for the development and planning application approval process; and, • review design and construction for compliance with the applicable WGS tier. 10. Pickering will focus on Key Outcomes (a)-(c) and (e)-(g) and: • be a member of the Project team; • assist with funding applications; • assist with stakeholder engagement and sharing results; • engage developers in participating in the design process; • provide consultation in further developing municipal green development standards; and, • work on developing and adopting its own green development standards. 11. Durham will focus on Key Outcomes (a), (b), & (e)-(g) and: • be a member of the Project team; • assist with stakeholder engagement and sharing results; • provide technical expertise; and, • support the costs associated with the project through the provision of $10,000. 12. CAP will work on all Key Outcomes and: • be the Project lead for stakeholder engagement; • assist with costing modelling for the Demonstration Homes; 6 of 13 • provide technical support; and, • assist with report preparation, sharing results, and developing a WGS implementation toolkit. 13. Mattamy will focus on Key Outcomes (b), (c), (e), & (f) and: • be a member of the Project team; • be the Project Lead for designing and modelling the Demonstration Homes and allow the other parties to oversee the design and construction process to ensure compliance with the WGS tiers; • obtain all approvals and permits necessary for the construction of the Demonstration Homes; • construct the Demonstration Homes; • monitor and record the costs and construction of the Demonstration Homes and provide all relevant information to the Consultant and make all relevant costing information publicly available; • market and sell the Demonstration Homes; • enter into agreements with the purchasers of the Demonstration Homes for the installation of smart-meters or other measures necessary to monitor the performance of the Demonstration Homes, including the consent from the herein noted purchasers for the Project Team to review the data gathered and include the depersonalized data in its reports; and, • assist with report preparation, stakeholder engagement, and sharing results. FUNDING 14. Grant funding and in-kind support is a key component of the completion of the Project and the development of the Demonstration Homes. The parties will provide the following minimum funding contributions and in-kind support for the Project: 7 of 13 a) Whitby will provide in-kind support estimated at $30,000 in staff time as well as $250,000 which has been provided through grant funding to support the administrative and modelling costs of the project; b) Pickering will provide in-kind support estimated at $5,000 in staff time; c) Durham will provide in-kind support estimated at $10,000 in staff time, as well as $10,000 in funding to Whitby to support the costs of stakeholder consultation; d) CAP will provide in-kind support estimated at $64,500 in staff time to support the costs for project administration and stakeholder engagement; e) Mattamy will construct and sell the Demonstration Homes at its own cost, estimated at $800,000 in construction and warranty costs and staff time. Mattamy will receive the revenues from selling the Demonstration Homes; f) Whitby will use any funding received towards the Project and activities directly related to the Project, including retaining the Consultant; and, g) Should additional grant sources be identified and any additional funding be received, then such funding will be applied by the party receiving it towards the Project which could include the reimbursement of costs for the construction of the demonstration homes and incentive programs to the homeowner for the monitoring post construction, subject to Whitby Council approval and, where authorized, such additional funding may be issued as a grant pursuant to Section 107(1) of the Municipal Act, 2001, c.25, as amended. FEES AND COSTS 15. The parties shall be responsible for their own fees and costs incurred in connection with this MOU and any other agreement or transaction related to the Project, and for any fees or commissions payable to any person it has retained in respect of the Project. 8 of 13 CONFIDENTIALITY 16. Throughout the Project, the parties may provide, exchange, or allow access to each other’s proprietary, technical, or business data, and/or other confidential information in connection with the Project (collectively, “Confidential Information”). The parties, individually and on behalf of those they represent, agree that: a) they shall treat and keep the Confidential Information secure and confidential; b) they shall not disclose any Confidential Information without obtaining the written consent of the party from whom it originated; c) they shall not use any Confidential Information acquired through the performance of this MOU to gain an unfair advantage in any other project or undertaking; and, d) the parties acknowledge that this MOU or portions thereof, and any other information or documents that are provided to Whitby, Pickering, or Durham, may be released pursuant to the provisions of the Municipal Freedom of Information and Protection of Privacy Act (“MFIPPA”). 17. For clarity, the parties agree that a party may use the data and results gathered from the Project, in a depersonalized manner or in the aggregate, to report publicly to its respective Committees, Council, Board of Directors or shareholders. Pursuant to Section 18 below, a party seeking to report publicly on the Project shall share the data and results expected to be reported publicly with the other parties to ensure that no Confidential Information is disclosed without written consent. PUBLIC ANNOUNCEMENT 18. No party shall make any public announcement regarding the Project without the consent of the other parties. The parties shall make efforts to coordinate their respective public engagement and messaging efforts to ensure that they are timely, consistent, and unified. 9 of 13 TERM 19. This MOU will be effective once signed by all parties and the parties will adhere to this MOU for the duration of the Project of which the end date is anticipated to be January 31, 2026. NO ASSIGNMENT 20. The parties will not assign their roles, rights, or obligations under this MOU without the prior written consent of the other parties. Except, however, that Mattamy may delegate its roles, rights, or obligations to one or more wholly- owned subsidiary corporations, in which case its subsidiary shall agree to be a party to and bound by the terms of this MOU and this MOU will be amended accordingly. ADDITIONAL PARTIES 21. Throughout the Project, new partners may be identified who wish to contribute funding or in-kind support for the Project. After consultation, the existing parties may choose to invite third-parties to join the Project. This MOU will be amended to reflect the addition of any new parties. NOTICE AND REPRESENTATIVES OF THE PARTIES 22. The parties will remain in regular contact with each other and attempt to resolve any issues cooperatively. Notice or communications given under this MOU may be given personally or by email at the following addresses: a) for Whitby: Sarah Klein Director, Strategic Initiatives 575 Rossland Road East Whitby ON L1N 2M8 strategicinitiatives@whitby.ca cc: Legal Services (legal@whitby.ca), Town Clerk (clerk@whitby.ca) 10 of 13 b) for Pickering: Kyle Bentley Director, City Development & CBO One the Esplanade Pickering, ON L1V 6K7 kbentley@pickering.ca c) for Durham: Ian McVey Manager of Sustainability 605 Rossland Road East Whitby, ON L1N 6A3 ian.mcvey@durham.ca d) for CAP: Gabriella Kalapos Executive Director 75 Elizabeth Street Toronto, Ontario M5G 1P4 gkalapos@cleanairpartnership.org e) for Mattamy: Mitchell Minniti Director, Land Development 433 Steeles Ave E, Milton, ON L9T 8Z4 Mitchell.Minniti@mattamycorp.com GOVERNING LAW 23. This MOU shall be governed by and construed in accordance with the applicable laws of the Province of Ontario and Canada. NO CONTRACTUAL LIABILITY 24. The parties agree that each of them is responsible for fulfilling their own roles under this MOU. Except for claims related to a breach of paragraphs 26 or 25 of this MOU, no party shall be liable to any other party or any third party for any claim alleging breach of contract or any other claims, damages, or costs of any 11 of 13 kind, including claims for lost revenue or profit or increased costs, related to any purported rights or obligations under this this MOU. INDEMNIFICATION 25. The parties agree to indemnify and hold each other and their officers, elected officials, directors, agents, and employees harmless from and against any and all third-party claims for equitable relief, costs, or damages caused by their respective negligence or willful misconduct related to the Project. COUNTERPARTS 26. This MOU may be executed in two or more counterparts (including counterparts signed or delivered electronically), each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. SIGNATURES Executed by Whitby this ______ day of __________________, 2022. THE CORPORATION OF THE TOWN OF WHITBY Matthew Gaskell, Chief Administrative Officer Fuwing Wong, Commissioner of Financial Services / Treasurer We have authority to bind the corporation. 12 of 13 Executed by Mattamy this ______ day of __________________, 2022. MATTAMY DEVELOPMENT COPORATION Andrew Sjogren, Senior Vice President I have authority to bind the corporation. Executed by Durham this ______ day of __________________, 2022. THE REGIONAL MUNICIPALITY OF DURHAM Elaine Baxter-Trahair, Chief Administrative Officer I have authority to bind the corporation. Executed by Pickering this ______ day of __________________, 2022. THE CITY OF PICKERING Kevin Ashe, Mayor Susan Cassel, Clerk We have authority to bind the corporation. 13 of 13 Executed by CAP this ______ day of __________________, 2022. CLEAN AIR PARTNERSHIP Gabrielle Kalapos, Executive Director I have authority to bind the corporation.