Public Delegations    Item #   5. b.            
Regular Council Meeting Agenda
Meeting Date: 06/10/2019  
Title: TransAlta Tri Leisure Centre - Municipal Climate Change Action Centre Grant - Wolanski
Department: Community & Protective Services
Where People Choose to Live - A dynamic city with an exceptional quality of life
High quality leisure, recreational, commercial and social infrastructure and amenities that meet the interests and needs of the greater community are in place and conveniently accessible.

Request for Decision Summary
The purpose of this agenda item is to seek Council approval to use funds in the Restricted Reserve that will fund the TransAlta Tri-Leisure Centre’s (TLC) portion of the Municipal Climate Change Action Centre – Recreation Energy Conservation Grant.

Proposed Motion
That up to $250,000 be approved for the matching portion of the TransAlta Tri-Leisure Centre's Municipal Climate Change Action Centre - Recreation Energy Conservation Grant application, to be funded from the TransAlta Tri-Leisure Centre's Restricted Reserve. 

Background/Analysis
The Municipal Climate Change Action Centre (MCCAC) recently announced funding through the Recreation Energy Conservation Grant to assist municipally owned recreation facilities reduce energy use and greenhouse gas emissions through the implementation of energy-saving products. The grant will cover up to 75% of the costs of approved projects to a potential maximum of $750,000 per municipality. Eligible facilities must be recreationally focused and utilize high amounts of energy currently. The TLC meets all eligibility requirements for this grant and would be eligible to apply under the umbrella of one of the municipal owners. The City of Spruce Grove’s Administration has indicated they would be open to the TLC making application under their name, given that the TLC takes responsibility for the entirety of the project(s) from start to finish.

In late 2018, the City of Spruce Grove was awarded an energy assessment for a facility of their choice, for which they chose the TLC. The TLC recently received the complete assessment, along with the recommendations to reduce energy use and experience a cost savings on an ongoing basis.

The energy assessment identified the following major recommendations (some additional recommendations were made, but they were insignificant in cost relative to those listed below):

Energy Conservation Method Estimated Capital Cost
1. Combined Heat and Power Unit $800,000
2. Lighting Retrofit $410,000
3. Boiler Replacement - Condensing Boilers $345,000
4. HVAC Recommissioning $20,000

 
Each of these projects are eligible under this grant, however due to the combined costs, they could not all could be funded, so they would need to be prioritized. As such, TLC Administration has reviewed the recommendations and has determined that the Lighting Retrofit and Boiler Replacement will be the two projects for which funding will be requested. If there is grant funding remaining, they will also consider the HVAC recommissioning.

Prior to proceeding with the potential funding application, Administration requires confirmation from the Board and municipalities that the TLC portion of funding is supported and approved. At their May 16, 2019 meeting, the TLC Board of Directors approved the expenditure of up to $250,000 from the Restricted Reserve for the MCCAC Grant Application, and directed Administration to seek final approval from the three Municipalities and proceed with the grant application.

An Expression of Interest was submitted to MCCAC (non-binding) so the TLC could be placed in the queue as there are currently over 90 facilities who have expressed interest in the funding. Following a discussion with the staff from MCCAC, TLC Administration confirmed these projects meet the criteria and would be considered for funding.

As the grant is time sensitive and funding is being allocated on a first-come first-serve basis, TLC Administration is recommending that the funding for the cost-share portion of the grant be funded from the TLC’s Restricted Surplus rather than a request for new funding being submitted via the budget process. As per the current Memorandum of Understanding, all three Municipal Councils must approve the use of the Restricted Reserve, which has a current balance of $802,000.
Options/Alternatives
 N/A
Consultation/Engagement
TransAlta Tri Leisure Centre Board Meeting Minutes from May 16, 2019:

Moved by B. Buchko  that the board approves the application for funding under the Municipal Climate Change Action Centre–Recreation Energy Conservation Grant, with up to $250,000 being allocated from the Restricted Reserve.
CARRIED
 
Moved by D. Oldham that Administration request approval from the three owner municipalities for the funding application and use of restricted reserve funding.
CARRIED

Implementation/Communication
 N/A
Impacts
 N/A

Fiscal Impact
Financial Implications:
Based on the information in the energy audit, the two projects that are being pursued have an estimated total annual savings for the TLC once complete of approximately $107,000.  This would put the return for the investment of $250,000 at just under 2.5 years.  Future operational budgets will reflect this savings.  

Attachments-Y
MCCAC Request for Funding
MCCAC Recreation Energry Conservation Grant Brochure
ATCO Executive Summary TLC Energy Audit