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MUNICIPAL COUNCIL
AGENDA
Thursday, November 2, 2023 at 10:45 a.m.
Livestreamed via YouTube at
www.youtube.com/modcvideo
Office Location: 151 King Street, Chester, NS
1. MEETING CALLED TO ORDER
2. NEW BUSINESS
2.1 Request for Decision prepared October 27, 2023 – Infrastructure & Operations – Village of
Chester Wastewater System Upgrades (ICIP Village of Chester Wastewater System Renewal
and Expansion Project).
3. ADJOURNMENT
REQUEST FOR DECISION
REPORT TO: Council
MEETING DATE: November 2, 2023
DEPARTMENT: Infrastructure and Operations
SUBJECT: Village of Chester Wastewater System Upgrades
ORIGIN: ICIP Village of Chester Wastewater System
Renewal and Expansion Project
Date: October 27, 2023 Prepared by: Fred Whynot, P. Eng., Director of Public Works;
Jonathan Meakin, Manager, Sustainability & Asset Management
Date: October 30, 2023 Reviewed by: Matthew Blair, Director of Infrastructure and Operations
Date: October 31, 2023 Authorized by: Erin Lowe, Deputy CAO
RECOMMENDED MOTIONS
That, along with the Municipality’s existing $2,224,278 commitment to the Investing in Canada Infrastructure
Program (ICIP) grant of $8,340,000 for the Village of Chester Wastewater System Renewal and Expansion Project
(Phase 1), Council approve an additional $9,226,000 for the SBR technology option and an additional $884,000
for collection and transmission upgrades related to servicing growth areas;
and
That Council award the tender for the initial components of the Phase 1 collection and transmission upgrades to
the Village of Chester wastewater system (Tendered as Stanford Lake Road Wastewater Servicing) to Mid-Valley
Construction (1997) Ltd. for the amount of $1,935,548.16.
CURRENT SITUATION
On October 12, 2023, Public Works staff held a workshop with Council concerning options for design of upgrades
to the Village of Chester Wastewater Treatment Plant. This Request for Decision now seeks Council’s Motion in
support of a course of action.
In its design for the Village of Chester Wastewater System Renewal and Expansion Project, CBCL Limited
recommends an upgrade with new technology that will consistently meet regulations for wastewater effluent
quality, provide design capacity to treat wastewater for a projected 15-year growth in population, and be
expandable as a scalable wastewater treatment system for additional population growth in the longer term. A
decision on the chosen technological option for treatment upgrades must be made prior to detailed design.
In addition, the construction tender for a portion of the collection and transmission infrastructure included in
the Village of Chester Wastewater System Renewal and Expansion Project (Phase 1)—which is infrastructure
necessary for servicing the Chester Hills development—closed on October 26, 2023. (The remaining collection
and transmission infrastructure for the ICIP Phase 1 project will be tendered at a future date.) The estimate for
the current tender is $2,500,000, which is the bid received plus contingency. The remaining phase 1 collection
and transmission infrastructure components have an estimated budget of $3,850,000. In total, all Phase 1
collection and transmission upgrades will require an additional $884,000 budgetary commitment.
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BACKGROUND
INVESTING IN CANADA INFRASTRUCTURE APPLICATION
The Wastewater Service Study (2022) assessed the Municipality’s six wastewater systems in terms of capacity,
condition, and risk; climate vulnerability, existing and future service demand; and options for sustainable service
expansion, among other things. Following a review of numerous recommendations from that Study, staff and
Council developed a coordinated, proactive, and long-term wastewater strategy.
Council’s discussion around further definition and prioritization of wastewater projects considered the latest
opportunity for funding through the federal/provincial/municipal Investing in Canada Infrastructure Program
(ICIP). Given its project-ready status, scale of project impact, and development pressures, a project focused on
upgrades and expansion to the Village of Chester collection, transmission, and treatment system was approved
by Council as the Municipality’s submission to the April 1, 2022 ICIP intake.
Staff developed the Village of Chester Wastewater System Renewal and Expansion Project as project with two
phases. The project scope and design for the original ICIP submission was reviewed and approved by Council on
March 31, 2022 as follows:
MOVED by Councillor Wells, SECONDED by Deputy Warden Shatford that Municipality of the District of
Chester submit the project titled: Village of Chester Wastewater System Renewal and Expansion Project for
funding through the Investing in Canada Infrastructure Program – Green: Environmental Quality Stream; and
BE IT FURTHER RESOLVED THAT Council supports the project and commits to provide its share ($4,518,899)
toward the $16,943,752 project cost.
Figure 1: Map of Potential VoC Wastewater System Expansions
The Wastewater Service Study included a range of
potential service upgrades & expansions for the Village
of Chester wastewater system, as depicted in Figure 1.
The original ICIP application submission, and as
discussed with Council in March 2022, staff focused on
the following as a viable ICIP project scope:
PHASE 1
upgrades of three lift stations (SPS007, SPS0002, and
SPS0003 in Figure 1)
forcemain renewal between SPS0002 and Valley Road
wastewater treatment plant upgrades
new gravity sewer, new forcemains, and a new lift
station (shown as CV#C) on Stanford Lake Road
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PHASE 2
2 lift stations (shown as CV#D and CV#E in figure 1)
new forcemains
new gravity sewer
As stated in Council’s Motion from March 31, 2022, the total cost estimate for this original ICIP application
submission was $16,943,752, with the Municipality’s commitment by formula (26.67%) amounting to
$4,518,899. As a reminder, the cost estimates breakdown for the original ICIP submission is as follows:
PHASE 1
Project management & engineering services $ 935,477
Construction & materials costs $5,996,650
o Collection system upgrades $3,826,200
o Treatment plant upgrades $1,992,900
Sub-Total $6,932,127
Contingency (30%) $2,079,638
GHG/climate resiliency analysis $ 15,664
Total pre-tax cost estimate $9,027,429
Phase 1 eligible costs (total costs estimate + net HST) $9,414,706
PHASE 2
Project management & engineering services $ 747,786
Construction & materials costs $4,793,500
Sub-Total $5,541,286
Contingency (30%) $1,662,385
GHG/climate resiliency analysis $ 15,664
Total pre-tax cost estimate $7,219,335
Phase 2 eligible costs (total costs estimate + net HST $7,529,046
PHASE 1 & 2 GRAND TOTAL $16,943,752
INVESTING IN CANADA INFRASTRUCTURE GRANT AWARD
On February 17, 2023, the Department of Municipal Affairs and Housing informed the Municipality the ICIP
application was successful. The resulting federal/provincial/municipal contribution agreement was for Phase 1
of the Village of Chester Wastewater System Renewal and Expansion Project for a total project cost of
$8,340,000 ($6,116,000 in federal & provincial contributions).
Although the grant amount awarded ($8,340,000) is less than the original Phase 1 cost estimate ($9,414,706),
there were some additional adjustments to the Phase 1 estimated project costs, notably:
1. To ensure the project could advance in a timely manner, the Project Management & Engineering
Services line item was contracted prior to the ICIP grant being awarded. As a result, the estimated
$935,477 costs for that contract is not an eligible ICIP project cost.
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2. Because the ICIP grant awarded was less than $10M, the GHG/climate resiliency analysis ($15,664) is no
longer a requirement.
These adjustments, along with some minor tweaks to project construction and materials costs, resulted in the
revised estimates as follows:
REVISED PHASE 1 ESTIMATED COSTS
Collection system upgrades $5,466,000
Treatment plant upgrades $2,874,000
Phase 1 eligible costs (total costs estimate + net HST) $8,340,000
ICIP PHASE 1 GRANT AWARDED
Federal ICIP contribution (max. 40%) $3,336,000
Provincial ICIP contribution (max. 33.33%) $2,779,722
Municipality’s contribution (26.67%) $2,224,278
Total ICIP project funding $8,340,000
Figure 2 below maps the scope of the Village of Chester Wastewater System Renewal and Expansion Project –
Phase 1, which is the scope of work covered by the ICIP federal/provincial/municipal contribution agreement.
Figure 2: Village of Chester Wastewater System Renewal and Expansion Project – Phase 1
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DISCUSSION
Wastewater Treatment Plant Upgrades
As discussed in the Village of Chester wastewater project workshop with Council, CBCL’s assessment of the
existing wastewater treatment plant infrastructure was to determine a reasonable design population for the
upgrade. The current population in the sewershed is approximately 1,475. The calculation for projected
population over the next 15 years was based on a base growth rate of 1.5%, potential expansion areas, and 50%
development of known projects.
CBCL estimates that the population of a potential Village of Chester service area will be 2,350 persons by 2038.
This is an estimated increase of approximately 350 Equivalent Dwelling Units, using 2.5 persons per unit.
CBCL Ltd. then assessed what upgrades were needed to the current treatment plant infrastructure as per the
Wastewater Services Study and what increase in population it could fully treat to meet regulatory compliance.
They also explored what technology would be best suited, with approximate cost estimates, for additional
wastewater treatment if needed.
CBCL Ltd outlined four (4) possible solutions. The table outlined below shows the cost of each option, the
number of additional EDUs it can achieve, and the associated cost per EDU of each option.
Total Cost Number of
new EDUs
Cost per new
EDU
Option 1 – upgrade existing WWTP
$5,100,000 80 $63,750
Option 2 - Moving Bed Biofilm Reactor (MBBR) System
after Option 1 Completion
$20,800,000 350 $59,429
Option 3 - Membrane Bioreactors (MBR) System after
Option 1 Completion
$17,250,000 350 $49,286
Option 4 - Sequencing Batch Reactor (SBR) System
$12,100,000 350 $34,571
As discussed in the workshop with Council, staff recommend that Council authorize Option 4 - Sequencing Batch
Reactor (SBR) System as it will provide a cost-effective, scalable, and sustainable service solution for the current
and projected population of the Village of Chester.
For Option 4, a new plant would be built beside the existing plant. This would include a new headworks building,
a new UV disinfection building, a process building, two reactor tanks and sludge digestor building. The reactor
tanks would be enclosed, reducing the possibility of odour and noise from aeration systems.
Once the new plant is completed, obsolete infrastructure could be removed to prepare a suitable footprint on-
site for future expansion with similar technology. (Future expansion would consist of an additional reactor tank.)
Potential configurations for the initial and future upgrades using an SBR system are as follows:
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SBR Initial Upgrade
SBR Future Upgrade
Collection and Transmission System Upgrades
As noted, the Village of Chester wastewater treatment plant upgrades are only part of the Phase 1 project as
funded by the ICIP program. The remaining components of Phase 1 include a new collection system for Chester
Hills and upgrades to our existing infrastructure to meet future flows.
The following Phase 1 components are the focus of tender at this time:
collection system for Chester Hills, which consists of new gravity sewer, new forcemains, and new lift
station (CV#C)
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a forcemain upgrade between the North Street (SPS0002) lift station and the existing gravity sewer on
Valley Road.
During detailed design, it was discovered that the original location of CV#C would not be able to service all of
Chester Hills lands nor lands originally estimated to be captured in Phase 1. The new location of CV#C, as shown
below, will service Chester Hills without the need for an additional lift station and allow for additional servicing
of lands to the east (estimated area shown by an orange dashed line) via gravity sewer.
The received bid on these initial Phase 1 components amount to $1,935,548.16 (including net HST). With 30%
contingency, staff recommend that Council budget a total of $2,500,000.
Remaining Phase 1 components not tendered at this time include three lift station upgrades and another
forcemain upgrade. These components will be designed and tender ready for the next fiscal year (or future
fiscal years). The estimate for these remaining Phase 1 components is $3,850,000.
Original Lift Stations, forcemains, gravity sewer budget $5,466,000
Estimated Budget = $2,500,000 (2023-2024) + $3,850,000 (future) $6,350,000
Funding shortfall = $6,450,000 - $5,466,000 $884,000
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Financial Considerations for Phase 1 Upgrades
In summary, detailed design of the collection, transmission, and treatment upgrades resulted in the following
construction scope changes, in addition to revised materials costs estimates:
Relocation of CV#C & additional collection and transmission
190 acre sewershed vs 57 acre sewershed
New expandable WWTP
All estimates include construction and materials costs, 30% contingency, and net HST.
Original Estimate
Revised Estimate Difference
Collection system
upgrades
5,466,000 6,350,000 884,000
Treatment plant
upgrades
2,874,000 12,100,000 9,226,000
TOTALS 8,331,206 18,450,000 10,110,000
The current projected cash flow timeline for the existing ICIP project allocation is as follows:
2023-2024 $2,000,000 (Municipal 26.67% = $533,400)
2024-2025 $4,139,037 (Municipal 26.67% = $1,103,881)
2025-2026 $2,200,963 (Municipal 26.67% = $586,997)
TOTAL $8,340,000 (Municipal 26.67% = $2,224,278)
The total revised project cost estimates for the recommended Phase 1 work at this time, which includes eligible
costs as originally submitted and approved for ICIP project funding along with Option 4 for the wastewater
treatment plant upgrade and revised estimates for the collection and transmission upgrades, has a total cost
estimate of $18,550,000. The resulting change in the Municipality’s project contribution to ICIP funding for
Phase 1 costs are as follows:
Phase 1 Revised Project Cost Estimates:
Option 4 (SBR) WWTP Upgrades Estimate = $12,100,000 2024-2025 (Possibly 2026)
Lift Stations, forcemains, gravity sewer (2023-2024) = $2,500,000 2023-2024
Lift stations, forcemains, gravity sewer (future) = $3,850,000 2025-2026
Total Revised Cost Estimate = $18,450,000
Revised Phase 1 Project Funding:
ICIP federal and provincial contributions = $6,115,722
ICIP MODC contribution = $2,224,278
Additional MODC contribution to be budgeted = $10,110,000
Total Revised Funding Estimate = $18,450,000
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OPTIONS
Option A – approve an additional $9,226,000 for the SBR technology option and an additional $884,000 for
collection and transmission upgrades related to servicing growth areas and award the tender for the initial
components of the Phase 1 collection and transmission upgrades to the Village of Chester wastewater system
(Tendered as Stanford Lake Road Wastewater Servicing) to Mid-Valley Construction (1997) Ltd. for the amount
of $1,935,548.16.
Option B – Direct staff to return with additional information and options following Council’s direction.
IMPLICATIONS
By-Law/Policy
Not Applicable
Financial/budgetary
The funding for this $18,450,000 project, to be spread over the 2023-24, 2024-25 and 2025-26 budget years, is
recommended as follows:
Previously Approved Funding – ICIP ($8,340,000):
o Federal Grant - $3,336,000
o Provincial Grant - $2,777,220
o General Operating Reserve - $2,226,780
New Funding to be Approved ($10,110,000)
o Sewer Reserve - $1,650,000
o Infrastructure Development Fund - $8,030,000
o Wind Energy Reserve – General Portion - $430,000
Environmental
This project will improve the Municipality’s ability to convey wastewater and expand its wastewater system in a
sustainable manner.
Strategic Priorities
The completion of the Village of Chester Wastewater System Renewal and Expansion Project will assist the
Municipality in advancing the following Priority Outcomes of the 2021-24 Strategic Priorities Framework:
Priority Outcomes: Governance & Engagement
1. Ensure municipal service delivery is efficient and effective, communicated and accessible.
1. Continue to develop an asset management system that will inform decisions about infrastructure,
development, levels of service, risk assessment, and associated financing.
Priority Outcomes: Infrastructure & Service Delivery
1. Develop and implement evidence-based plans for future infrastructure and service needs, along with
related funding models, to accommodate sustainable growth and levels of service.
2. Create efficiencies through innovative service delivery, and proactive maintenance and operations of
existing infrastructure.
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Work Program Implications
This existing wastewater treatment plant will have upgraded infrastructure to meet current operational needs and capacity
for future expansion.
Has Legal review been completed? ___ Yes _ _ No _X_ N/A
COMMUNICATIONS (INTERNAL/EXTERNAL)