Heat recovery project for NDCC to move forward
By Nelson Daily Editor
By Timothy Schafer, The Nelson Daily
A bid process for the Nelson and District Community Complex looks to be second time lucky with the proposal pot sweetened after a $100,000 boost from two local levels of government.
On Monday night City council voted to add their one third — or $33,333 — to the $365,000 sum needed to attract an adequate bid and pull off the energy-saving heat recovery project.
Last May a financial hurdle put the energy recovery retrofit for the NDCC on hold. The Regional District of Central Kootenay board of directors rejected the single proposal of $366,949 received for the project because it was $175,000 more than was budgeted for.
The project budget was based on a cost estimate formulated when the complex had an energy audit performed two years ago. But the second phase of the energy recovery retrofit — putting in a heat pump and running pipe from the ice plant to the facilities’ boilers — received only a single proposal when the call for tenders went out.
The new total for the project is estimated to be $365,000, much higher than the $230,000 initially budgeted. That meant the City and regional district areas E and F — also partners in the operation of the facility — had to ante up a few more dollars.
The region’s recreation commission proposed that an additional $100,000 be contributed through Community Works (Gas Tax) funds, with the City and the two regional district areas contributing $33,333 each.
“I understand the City does currently contribute the lion’s share of the cost of this facility, but this is a worthwhile project,” said Coun. Deb Kozak. “We have to step up and support our two excellent regional district directors.”
Regional district area E and F directors, Ron Mickel and Ramona Faust, have already agreed to allocate their Gas Tax funds to this project and had requested the participation of the City.
City manager Kevin Cormack said the City currently contributes approximately 60 per cent of the funds for the operation of the NDCC. The heat recovery system project at the NDCC appeared to fit the mandate for the Gas Tax program, he said.
“At this time, the City has not allocated the (Gas Tax) funds to any specific project, although appropriate projects will be discussed at 2011 financial planning sessions,” he said.
However, there would be a shortfall of $35,000 for the project, covered by the energy savings it would realize, said Cormack.
In 2009 the NDCC accomplished phase one of the heat recovery project, installing a heat exchanger into the ice plant on the arena side of the complex.
An energy audit report from AME identified the opportunity to capture the heat loss from the ice plant operation to be used to heat the swimming pool and facility.
Approximately $35,000 in utility savings could be realized annually with installation of the heat recovery system. Pay back of the project is five years.
What is the Gas Tax?
The Gas Tax Fund is the common name for the Canada-BC-Union of BC Municipalities Agreement on the Transfer of Federal Gas Tax Revenues.
The Gas Tax Fund, a key component of the Building Canada infrastructure plan, is helping to build Canada’s communities by providing predictable and long-term funding in support of municipal infrastructure that contributes to cleaner air, cleaner water and reduced greenhouse gas emissions.
The Gas Tax supports environmentally sustainable municipal infrastructure, such as public transit, drinking water, wastewater infrastructure, green energy, solid waste management and local roads and bridges.
The Community Works portion of the Gas Tax funds is that which is allocated on an annual basis.
Other projects (such as the Cottonwood Storm project ($425,000), the Healthy Nelson-Integrated Community Sustainability program ($265,000), and the Sustainable Community Assessment ($5,000) are separate components of the Gas Tax funds.
The City has received $1.53 million in Gas Tax funds since 2005. In 2008, the City allocated $475,000 of these funds to a sewer lift station infrastructure project.
The City will receive an additional $423,380 in each of the next three years.
Source: City of Nelson
