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Solar Farm - Unfunding
Notice given by: Councillor Hughes
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BUDGET POSTPONED MOTION:
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That the budget and scope of Project Charter ENV-004 Solar Farm, as originally approved at the June 21, 2021 Council meeting, is reduced from $26,100,000 to $135,000 to include only that portion of the project related to the pre-construction work on the Solar Farm that was approved at the August 30, 2021 Council meeting.
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Administration’s Understanding of the Intent of the Motion:
That prior approval of the complete solar farm charter ENV-004 be amended to only include the pre-construction portion of the project. Total budget for this project will be reduced from $26.1M to $135,000 at this current time.
Operational or Organizational Impacts if Motion is Approved:
None. Administration will continue the pre-construction work, as approved,
Financial Implications of Motions:
The original charter for $26.1 M approved by Council at the June 21, 2021 meeting was listed in the charter as starting in 2022 which is why it is currently in the proposed budget as a 2022 project. The intent had always been that the pre-construction work would continue throughout 2021 and into 2022 so technically should have been considered a 2021 project approved outside of budget. If this motion passes, the current approval and total revised budget for this project for $135,000 will show as a 2021 project and will not be included as part of the 2022 approved budget.
Should Council ultimately decide to move ahead with this project, a new budget will need to be approved.
Stakeholder Consultations:
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Background:
Although the solar farm project was in it's infancy stage with several planned decision points by Council, the original project charter for $26.1 million, which was based on only feasibility level analysis, was presented to Council for approval for the purpose of supporting the borrowing bylaw that Council directed Administration to begin actioning. This is in line with our historical practice.
Whether or not the budget for this project remains officially on the books will not negate the planned decision gates for Council. Administration will not proceed to the next stages until we receive that direction from Council in 2022. At that time, based on the newest information the project budget will remain "as is", be modified, or be cancelled at Council's direction.
Should this motion pass, it will not impact the current pre-construction stage of the project and the next decision gate for Council will proceed in 2022. If at that time Council chooses to proceed with the project, a new budget/charter will require Council approval.
The motion to unfund the Solar Farm has no impact on the Badger Lands Contamination Site Assessment that has been tendered and a contract awarded. This site assessment work would continue regardless of the outcome of the motion.
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Report Date: December 2, 2021
Author: Diane McMordie, Director/CFO
Department: Financial Services and Information Techology
Deputy Chief Administrative Officer: Kerry Hilts
Chief Administrative Officer: Kevin Scoble