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MUNICIPAL COUNCIL
AGENDA
Thursday,April 26, 2018
Chester Municipal Council Chambers
151 King Street, Chester, NS
1.MEETING CALLED TO ORDER.
2.APPROVAL OF AGENDA/ORDER OF BUSINESS.
3.PUBLIC INPUT SESSION (8:45 a.m. to 9:00 a.m.)
4.MINUTES OF PREVIOUS MEETING:
4.1 Council –April 12,2018
4.2 Council –April 19, 2018
5.COMMITTEE REPORTS:
5.1 Committee of the Whole –April 19, 2018 –Warden Webber
(approval of motions only)
5.2 Committee of the Whole –March 22, 2018 –Warden Webber
(receive minutes only)
5.3 Citizens Landfill Monitoring Committee –January 29, 2018 –Councillor Church
(receive minutes only)
5.4 Citizens Planning Advisory Committee –March 27,2018 –Warden Webber
(approval of motion only)
a)Staff Report #3 prepared by Community Development
Department dated April 17,2018 regarding proposed draft
amendments for clarification to requirements of off-site parking –
First Reading.
5.5 Any other Committees.
6.MATTERS ARISING:
6.1 Letter from UNSM dated March 22, 2108 (Origin –Council Meeting –March 29,
2018) regarding April 30th deadline to get priorities in.
Page 2 of 2
7.CORRESPONDENCE:
7.1 Letter from Ray Cambria dated April 17, 2018 regarding reVision update to the
Municipal Planning Strategy (MPS) and Land Use Bylaw (LUB).
8.NEW BUSINESS:
8.1 Request for Decision prepared by Solid Waste Department dated April 12, 2018
regarding Mobile Tower Unit.
8.2 Request for Decision prepared by Administration dated April 19, 2018 regarding
Wet Anaerobic Digestion.
10.ADJOURNMENT.
9. IN CAMERA:
9.1 Section 22(2)(g) of the MGA – Legal Advice.
9.2 Section 22(2)(e) of the MGA – Contract Negotiations – Wet Anaerobic Digestion
Municipality of the District of Chester
Community Development Department
Staff Report #3
Prepared for:Municipal Council
Submitted by:Garth Sturtevant,Planner
Date:April 26, 2018
Subject:Clarification to Requirements for Off-site Parking
Prepared By:Garth Sturtevant Date:April 17, 2018
Reviewed By:Date:
Authorized By:Date
Recommendation
Staff recommend Option 1:
That Municipal Council give 1st reading to the draft amendments, attached as Appendix A,which will
clarify regulations for the provision of off-site parking within the Central Commercial Zone and further,
that Council direct staff to host a Public Information Meeting and set a date for a Public Hearing for May
24, 2018 at 8:45 a.m. in Municipal Council Chambers.
APPLICANT Council Initiated
PROPOSAL Direction from Council to draft amendments to relax requirements for
off-site parking within the Central Commercial Zone
LOCATION Chester Village Planning Area
ZONE Central Commercial (C) Zone
NEIGHBOUR
NOTIFICATION
None to date –if general amendment (i.e. all C Zone) no notification of
neighbouring properties
Staff Report & Draft Amendments Page 2
Clarification for Off-site Parking in Central Commercial Zone February 20, 2018
Citizens Planning Advisory Committee Meeting –March 27, 2018
The proposed amendments have been considered by the Citizens Planning Advisory Committee at a
meeting held on March 27, 2018. Committee members held a brief discussion before passing the
following motion:
MOVED Art Backman, SECONDED by Mary Ellen Clancey that the Citizens Planning Advisory
Committee recommend that Municipal Council move forward and give first reading to the
proposed amendments attached as Appendix A,which will clarify regulations for the provision of
off-site parking within the Central Commercial Zone. CARRIED.
Village Area Advisory Committee Meeting –February 20, 2018
The proposed amendments have been considered by the Village Area Advisory Committee at a meeting
held on February 20, 2018. VAAC members discussed the amendmen ts and asked questions of staff
before providing a positive recommendation that the amendments move fo rward as presented. VAAC
members recommended that the Citizens Planning Advisory Committee provide a positive
recommendation to Municipal Council to move forward and adopt the proposed amendments attached
as Appendix A.
Background
In March 2017, an application for a Development Permit was received. The purpose of the application was
to change the use of an existing single unit dwelling to a licensed lounge. The application also proposed
two new commercial rental (guest room) units on the second floo r. As specified in the Land Use By-law,
this change of use required five new off -street parking spaces. The property owners were unable to meet
the current Land Use By-law requirements to provide the required level of parking, resulting in no
Development Permit being issued. In July 2017, the property owners applied for a variance to reduce the
number of required parking spaces for the development. This variance was denied, primarily because
parking in the Central Commercial Zone is considered a general iss ue, common to most properties in the
area. The property owners appealed the variance decision and Council upheld the decision to deny the
variance. Following the Public Hearing for the Variance, Council directed Staff to research potential
options to allow more flexibility for parking requirements in the Central Commercial Zone and bring a
report back to Council for consideration and discussion.
At a Council meeting held on November 2, 2017, staff presented a report with several options for
consideration to allow flexibility and/or reduce the required number of parking spaces for developments
within the Central Commercial Zone. Council gave direction to staff to prepare draft amendments that
relax existing regulations for off-site parking within the Central Commercial Zone.
Subject Properties
All properties within the Central Commercial (C) Zone (See Appendix B).
Staff Report & Draft Amendments Page 3
Clarification for Off-site Parking in Central Commercial Zone February 20, 2018
Discussion -Considerations
Parking in the Central Commercial Zone has been a longstanding topic of discussion. The area is generally
comprised of small lots and similar to other traditional commercial areas, buildings occupy a large
percentage of lot area. This results in many lots having little to no space to provide on -site parking. Many
structures in this zone predate the current Land Use By -law and at the time of construction were not
subject to any parking requirements. The lack of available land area, combined with a relatively high
parking standard results in limitations to the development potential for new uses and the expansion of
existing uses.
The Land Use By-law contains an exemption for existing buildings located in the Central Commercial
Zone,stating no parking is required for the initial 93 sq. metres (1,000 sq. ft) of floor area devoted to the
use, except for residential uses, guest houses, hotels and inns. This exemption has allowed some
development and expansion within the Central Commercial Zone; however, the size, scope and type of
development or expansion may continue to be limited by existing parking requirements.
Existing Parking Regulations in Chester Village
The Chester Village Area Land Use By-law requires a certain number of parking spaces based on the type
of land use and the number of dwelling units, suites/rental units, seats, boats or square footage in a
development.
14.2.2 Number of Parking Spaces Required
No development permit shall be issued for any development unless off-street parking having
unobstructed access to a public street shall be provided and maintained in conformity with the following
schedule:
Type of Use Required Parking
i) Residential buildings containing not more than
four (4) dwelling units
One (1) parking space for each dwelling unit
ii) Residential buildings containing five (5) or more
dwelling units
One and one-quarter (1.25) spaces for each
dwelling unit
iii) Hotels and motels, and other accommodations
for travelers
One and one-tenth (1.1) space per suite or
rental unit
iv) Senior citizens housing One (1) space for each three (3) units
v) Churches, Funeral Homes, theatres, halls private
clubs, restaurants, lounges, other places of assembly
Where there are seats, one (1) parking space
for every five (5) seats. Where there are no
seats, one (1) parking space for each 9 sq. m.
(100 sq. ft.) of floor area devoted to public use
vi) Offices One (1) space for every 28 sq. m. (300 sq. ft.) of
floor area
Staff Report & Draft Amendments Page 4
Clarification for Off-site Parking in Central Commercial Zone February 20, 2018
vii) Industries One (1) space for every 93 sq. m. (1,000 sq. ft.)
of floor area
viii) Warehouses One (1) space for every 278 sq. m. (3,000 sq. ft .)
of floor area
ix) All other commercial uses One (1) space for every 28 sq. m. (300 sq. ft.) of
floor area
x) Marinas One (1) space for every berth or anchorage
xi) Tour boats One (1) space for every five (5) seats
xii) Boat Rentals One space for each boat
Relevant Policy Identification
The following policies have been identified within the Chester Village Secondary Planning Strategy
regarding requirements to provide on-site parking:
Policy
4.9.1 That use-specific parking standards are established in the Land Use By-law, and where
developments are permitted by development agreement or site plan approvals, the agreement
shall make provision for adequate parking to serve the development proposal.
4.9.2 That due to the density of development in the central Commercial area, the use-specific parking
standards established by Policy 4.9.1 are waived for the first 92 sq. metres (1,000 square feet) of
floor area within existing buildings in the Central Commercial Zone except for resi dential uses,
guest houses, hotels, and inns.
4.9.3 That the Land Use By-law establishes maximum height limitations and minimum yard
requirements in each zone so as to provide for separation between adjacent buildings as well as
between buildings and lot lines, for adequate fire separation, emergency vehicle access, on -site
parking, maintenance of buildings and land, private outdoor space, solar exposure, air circulation,
separation of land uses to reduce land use conflicts, and preservation of the charact er of the
various neighbourhoods within the planning area.
Amendments to Clarify Existing Regulations for Off -site Parking
A recent legal review has concluded that off-site parking is currently permitted by the Chester Village
Land Use By-law.Staff have reviewed the Land Use By-law and Secondary Planning Strategy through this
lens,and determined that there are virtually no regulations on when and how off-site parking may be
used. The single exception is a clause in Section 14.2.4 stating that parking lots of five or more spaces
must be located within 90m of the building which requires the parking.Staff have drafted the attached
Staff Report & Draft Amendments Page 5
Clarification for Off-site Parking in Central Commercial Zone February 20, 2018
amendments to provide clarification and add policy support for off-site parking. The amendments will
also outline standards and regulations for when and where off-site parking is allowed.
The amendments attached as Appendix A add policies to the Chester Village Secondary Planning Strategy
to clarify that off-site parking is permitted within the Central Commercial Zone,subject to provisions of
the Land Use By-law.New policy statements confirm that on-site parking is the preferred and standard
form of parking and that off-site parking is not permitted for residential uses.In order to utilize off-site
parking, a developer must reasonably prove that on -site parking is not feasible and must apply for a
Development Permit for a Parking Lot to house the off-site parking spaces.The location of the off-street
parking must be within 300m of the building which it serves. This is an increase from the currently
allowed 90m separation between the building and off-site parking.Additional criteria have been added to
Section 14 Parking,to outline requirements for off-site parking, including the registration of a parking
easement.
New Requirements for Off-Site Parking
The draft amendments attached as Appendix A allow developments within the Central Commercial Zone
to provide either on-site or off-site parking at the level required by the Land Use By-law. Off-site parking
is only permitted within the Central Commercial Zone and is subject to several provisions.
No off-site parking shall be approved as part of a development unless ALL the following conditions are
met:
The developer has demonstrated that providing on-site parking is not practical. Acceptable
reasons include:a lack of useable space on the lot, that access/egress to the on -site parking area
will create a public hazard or that available space is occupi ed by steep slopes or mature trees
No existing on-site parking spaces are being lost or replaced by the proposed off -site spaces;
The off-site parking shall be located within 300m of the building which it serves;
When issuing a Development Permit for a use that is proposing off-site parking, a separate
Development Permit for a Parking Lot must be issued concurrently;
A signed and registered easement, satisfactory to the Municipality of Chester has been Registered
with the Nova Scotia Registry of Deeds to ensure the Off-site Parking cannot be removed while
the use that requires it remains in operation.
Options
1.Give 1st reading to the draft amendments, attached as Appendix A,which will clarify regulations
for the provision of off-site parking within the Central Commercial Zone and further, that Council
set a date for a Public Hearing for May 17, 2018 at 8:45 a.m. in Municipal Council Chambers.
2.Defer 1st reading and request further information or revisions to the report and draft
amendments.
Staff Report & Draft Amendments Page 6
Clarification for Off-site Parking in Central Commercial Zone February 20, 2018
3.Reject the draft amendments (Appendix A) and not move forward with changes to the regulations
for off-site parking.
Staff Report & Draft Amendments Page 7
Clarification for Off-site Parking in Central Commercial Zone February 20, 2018
Appendix A –Draft Amendments to Chester Village Secondary Planning Strategy
and Land Use By-law
Municipality of the District of Chester
A By-law amending the Chester Village Area Land Use By-law and Chester Village Area Secondary
Planning Strategy
NOTE: The proposed amendments are shown below. Strikethrough text is to be removed and new text is
underlined. Revisions to the proposed amendment are shown in red text.
Be it enacted by the Council of the Municipality of the District of Chester that the Village Area Secondary
Planning Strategy and Land Use By-law be amended as follows:
CHESTER VILLAGE SPS AMENDMENTS:
4.9.2 A That in recognition of the general lack of useable space and high percentage of lot
coverage common to the Central Commercial Zone,off-site parking shall be permitted as an
alternative to on-site parking only within this zone.
4.9.3 That the Land Use By-law establishes maximum height limitations and minimum yard
requirements in each zone so as to provide for separation between adjacent buildings as well as
between buildings and lot lines, for adequate fire separation, emergency vehicle access,on-site
off-street parking, maintenance of buildings and land, private outdoor space, solar exposure, air
circulation, separation of land uses to reduce land use conflicts, and preservation of the character
of the various neighbourhoods within the planning area.
4.9.7 That on-site parking is the standard and preferred approach to parking in relation to new or
expanding developments. Off-site parking may be considered when the developer provides
information, satisfactory to the Development Officer, that reasonable attemp ts have been made
to provide any required parking on the same lot as the use which it serves. Grounds for allowing
off-site parking include but are not limited to: a lack of useable space on the lot, that
access/egress to the on-site parking area will create a public hazard or that available space is
occupied by steep slopes or mature trees.
4.9.8 That the Land Use By-law shall outline specific requirements that must be in place before
off-site parking may be approved. Residential uses are prohibited from utilizing off-site parking
and must meet the parking requirements of the Land Use By -law by providing on-site parking.
CHESTER VILLAGE LAND USE BY-LAW AMENDMENTS:
6.2.1 Permitted Developments
a)Developments Permitted Subject to Central Commercial Zone Standards
Automobile Sales and Repair (excluding Body Shops)
Bakeshops
Banks and Financial Institutions
Staff Report & Draft Amendments Page 8
Clarification for Off-site Parking in Central Commercial Zone February 20, 2018
Beverage Rooms subject to Section 6.2.7
Craft Workshops
Day Care Centres
Dressmaking and Tailoring
Existing Mobile Homes as listed on Schedule "C"
Existing Multi-Unit Dwellings as identified on Schedule "C"
Existing Beverage Rooms and Lounges identified on Schedule "C"
Funeral Homes
Hotels
Laundry and Dry Cleaning Depots
Lounges subject to Section 6.2.7
Existing Marinas as listed on Schedule "C"
Medical Clinics
Office Buildings and office uses
Parking Lots
Parks and Recreation Uses
Personal Service Shops
Printing Establishments
Places of entertainment, recreation and assembly, within wholly enclosed buildings
Rental Depots
Repair Shops
Residential units in the same building as a Commercial use to a maximum of four units
Restaurants and Take-Out Restaurants
Retail and Wholesale Sales
Schools
Skilled Trades Shops
Studios for the practice or instruction of fine arts or crafts
Taxi and Bus Stations
Existing warehouses and enclosed distribution centres as listed in Schedule "C".
6.2.6 Parking Exemption -Existing Buildings
Where permitted uses locate in existing buildings in the Central Commercial Zone, there shall be
no parking required for the initial 92 sq.metres (1,000 sq. ft.) of floor area devoted to the use,
except for residential uses, guest houses, hotels and inns.
14.2.4 Requirements for Off-Site Parking
Where a proposed development cannot reasonably provide on -site parking to satisfy Section
14.2.2, off-site parking may be provided in its place subject to the following:
i.The provision of off-site parking is permitted only within the Central Commercial Zone;
ii.That the use requiring parking is not a residential use. Residential uses must meet par king
requirements solely through the provision of on -site parking.
Staff Report & Draft Amendments Page 9
Clarification for Off-site Parking in Central Commercial Zone February 20, 2018
iii.The Development Officer shall be satisfied that the proposed off -site parking cannot be
reasonably provided as on-site parking on the same lot as the use that requires it.
Grounds for allowing off-site parking include but are not limited to: a lack of useable
space on the lot, that access/egress to the on -site parking will create a public hazard,or
that available space is occupied by steep slopes or mature trees.;
iv.Any Parking Lot containing off-site parking shall be within a distance of 300 metres (984
ft.) of the building which it serves;
v.The placement of off-site parking spaces on a lot requires the issuance of a separate
Development Permit for a Parking Lot. A Development Permit for the Parking Lot shall be
issued concurrently with the Development Permit issued for the use that requires parking;
vi.Before a Development Permit is issued for a Parking Lot containing off-site parking, a
parking easement must be Registered with the Nova Scotia Land Registry. The easement
must include provisions stating that the Parking Lot is for the exclusive use of the
benefitted parcel;
vii.The parking easement may be released only under the following conditions:
The parking requirement is met through an alternate proposal such as through
on-site parking or due to a reduction in the amount of parking required by the
Land Use By-law which shall be noted with the issuance of an amended
Development Permit;or,
The use which requires parking permanently ceases to operate. Written
confirmation must be provided to the Development Officer and the Development
Permit will then be amended to state the use is no longer in operation and the
off-site parking is no longer required.
viii.The provisions of Section 14.2.5 shall apply when five (5) or more off -site parking spaces
are required.
14.2.5 Requirements for Layout of Substantial Parking Lots Areas
Where off-street parking is required and more than four (4)five (5)or more spaces are provided,
no development permit shall be issued except in conformity with the following requirements:
i)the parking lot shall be treated or surfaced to prevent the raising of dust;
ii)any illumination shall be directed away from streets, adjacent lots, and buildings;
iii)the parking lot shall be within a distance of 90 metres (300 ft.)of the building which it
serves.
iii)each parking space and the direction of travel in each aisle shall be clearly marked and
maintained where a permanent hard surface is provided;
iv)the limits of the parking lot, and highway access shall be defined by a permanent curb,
fence or other suitable obstruction to provide a neat appearance;
v)no highway access shall be within 15 metres (50 ft.) of t he limits of the right-of-way of the
nearest public street highway intersection;
vi)the width of any access to a parking lot and of any aisle in a parking area, shall be a
minimum width of 3 metres (l0 ft.) if for one-way traffic, and a minimum width of 6
metres (20 ft.) if for two-way traffic.
Staff Report & Draft Amendments Page 10
Clarification for Off-site Parking in Central Commercial Zone February 20, 2018
vii)the development permit application shall be accompanied by a storm drainage plan
showing that storm water drainage will not adversely affect adjoining a nd downstream
properties.
16.61 PARKING
16.61 A OFF-SITE PARKING means Off-street Parking, for the exclusive use of the
development to which it relates, but not located on the same lot as the use that
requires it.
16.61 B OFF-STREET PARKING means either On-site or Off-site Parking spaces, located on
private property and for the exclusive use of the development to which it relates.
Off-street parking may not be located on a public street, Right-of-Way, or other
public property.See PARKING SPACE.
16.61 C ON-SITE PARKING means the standard form of Off-street Parking provided in
relation to a development. Located on the same lot as the use that requires it and
in compliance with all other provisions of the Land Use By -law. See PARKING
SPACE.
16.61 D PARKING LOT means an open area containing parking spaces, other than a street,
for containing five or more motor vehicles on-site parking spaces,or one (1) or
more off-site parking spaces,available for public use or as an accommodation for
clients,customers or residents,and which has adjacent access to permit ingress
or egress of motor vehicles to a street.
16.61 E PARKING SPACE means an area of not less than 15 square metres (162 square
feet), measuring 2.75 metres (9 feet) by 5.5 metres (18 feet ) exclusive of
driveways or aisles, for the temporary parking or storage of motor vehicles, and
which has adequate access to permit ingress and egress of a motor vehicle to
and from a street or highway by means of driveways, aisles or manoeuvring
areas.
16.62 Deleted PARKING SPACE means an area of not less than 15 square metres (162 square
feet), measuring 2.75 metres (9 feet) by 5.5 metres (18 feet) exclusive of driveways or aisles, for the
temporary parking or storage of motor vehicles, and which has adequate access to permit ingress and
egress of a motor vehicle to and from a street or highway by means of driveways, aisles or
manoeuvring areas.
Staff Report & Draft Amendments Page 11
Clarification for Off-site Parking in Central Commercial Zone February 20, 2018
Appendix B –Central Commercial Zone Properties & Building Footprints
REQUEST FOR D ECISION
Prepared By:Christa Rafuse, P.Eng.Date April 12, 2018
Reviewed By:Tammy Wilson, CAO Date April 17,2018
Authorized By:Tammy Wilson, CAO Date April 17,2018
CURRENT SITUATION
Presently the dispersion treatment provided by the existing tower unit has reached the end of its useful life.
The stationary unit is approximately thirteen (13) years old and is experiencing plugging issues which is very
problematic and during the Winter months it gets blocked by ice. In addition, the nozzle is worn and the
part is no longer available for this unit.
RECOMMENDATION
Staff respectfully recommend:
That Council approve the purchase of one mobile tower unit, nozzles, trailer for $39,800 plus HST
and one additional year of warranty $2,750 plus HST for a total of $42,550 plus HST.
BACKGROUND
The existing tower unit provides EVC (evapo-crystalization) and dispersion treatment at the end of our
leachate treatment system on at the Kaizer Meadow (KM)landfill site. The stationary tower unit has been in
operation for approximately thirteen (13) years and is an important component that had operated on
average four (4) days per week. Issues related to nitrate on the site have occurred with the over saturation
of the existing site. The vegetation is unable to uptake the nutrients quickly enough.
In addition, the proximity with the new Sustane building makes it difficult to operate as the spray blow s
towards the Sustane site and onto the workers. So,treatment has been limited to weekend operations.
DISCUSSION
With the deteriorating condition of the tower unit,ongoing nitrate issues due to the over-saturated
vegetation and close proximity to the new Sustane building it was determined new mobile equipment is
required. One to two mobile tower units are scheduled to be pur chased depending on the performance of
the first one.With a mobile unit for the area staff will be relocate throughout the designated site to assist
with the prevention of over saturation to the vegetation.A new dispersion area was selected last year away
from the Sustane site and a road for access to the new mobile tower unit site has been built by KM staff.
Pipe has been purchased for installation this Spring.
REPORT TO:CAO and Council
SUBMITTED BY:Solid Waste Department
DATE:April 26, 2018
SUBJECT:Mobile Tower Unit
ORIGIN:Budgeted in 2017/18
2 Request for Direction
We have reviewed Tender T-2018-004 for the mobile tower unit.We had one qualifying tender (the 2nd
missed our deadline) from HKD Snowmakers/Turbocristal Inc. at price of $28, 300 plus HST (at $4 ,245).The
price includes a 1year manpower and parts if operated as per indicated in the operators manual.An
extended warranty per year for a maximum of 2 years is also offered at $2 ,750 per year.We are confident
that one additional year of warranty at $2,750 would be beneficial. The tender meets all our specifications
outlined in Schedule A of the tender document.
Cost: $28,300 unit
Additional nozzles: $3,000 for evaporation
Trailer required for mobility: $8,500
Total:$39,800 plus HST
Plus 1 year warranty at $2750 plus HST (optional)
The purchase of the equipment is a crucial part of our leachate treatment system and the mobility and
evaporation/atomization is of great benefit to our site and meeting our requirements operate as per the
NSE regulations.
IMPLICATIONS
Policy
Procurement Policy P-04
Financial/Budgetary
The purchase of equipped was approved as part of the 2017-18 capital budget and carried over to the
2018-19 capital budget ($170,000)
The purchase and delivery of the new mobile tower unit, nozzles, trailer and additional warranty is $39,800
plus HST. Additional warranty $2,750 plus HST.
Environmental
N/A
Strategic Plan1.Maintain a high level of fiscal responsibility;2.Continually improve public satisfaction with municipal services;3.Ensure sufficient infrastructure is available to best serve our residents and businesses.
Work Program Implications
N/A
OPTIONS1.Purchase the equipment as recommended with one year additional warranty2.Purchase the equipment without additional warranty.3.Defer any decision.
ATTACHMENTS
N/A
2 Request for Direction
COMMUNICATIONS (INTE RNAL/EXTERNAL)
N/A
REQUEST FOR DECISION
Prepared By: Tammy Wilson, MURP, MCIP Date April 24, 2017
Reviewed By:Date
Authorized By:Date
CURRENT SITUATION
At the October 4, 2017 Council Meeting Municipal Council authorized the awarded of an unsolicited
proposal to Minas Energy for a Wet Anaerobic Digestion Feasibility Study in the amount of $70,000 and
approved an unbudgeted amount for the same in the 2017 -18 Operating Budget. This study was to
determine whether Wet Anaerobic Digestion with the feedstock of Source Separated Organics is a viable
option for generating electricity under MODC’s COMFIT approval for BioGas, which expires Feb 2019 .
The feedstock characterization study is completed, as well as a technology assessment. Given capital costs
to address feedstock issues (contamination) as well as post treatment of digestate, an alternative
feedstock is being proposed.There are a number of matters yet to be determined in order to confirm
whether the project is feasible, however, g iven tight timelines to meet the deadline of February 19, 2019
Minas is recommending that we proceed with awarding the Expression of Interest to An aergia in phases,
with the first phase (Phase Zero)being design and contract work at an estimated cost of $30,000.
RECOMMENDATION
There is insufficient information at this time to provide assurances to Council that the project is feasible
with the new biosolid feedstock proposal. This will take t ime to complete and competes directly with the
COMFIT deadline.
Council has invested $70K in the Feasibility Study for organics which has conclud ed that there are
challenges to obtaining the necessary feedstock as well as handling the digestate which bring into
question the feasibility of the project. Redirecting the feedstock to biosolids is a new development and
will take time to review.
If Council wishes to pursue the biosolid feedstock option, mitigating the risk of the COMFIT timeline
would be to undertake the phase recommended by Minas for $30,000. The risk is the $30,000 if the
project is deemed to be not feasible. Regardless, the timeline is tight to finish the project (10 months)
even if we proceed with Phase Zero. Staff have concerns respecting the timeline and the ability to
complete the project within this, in particular having the outstanding matters addressed within a
timeframe that would be required to move beyond Phase Zero and have the project complete.
REPORT TO:Municipal Council
SUBMITTED BY:Administration: Tammy Wilson, CAO
DATE:April 26, 2018
SUBJECT:Wet Anaerobic Digestion-COMFIT Approval
ORIGIN:Council -October 4, 2017
2 REQUEST FOR DECISION
If Council does wish to proceed, the next step would be :
1.To negotiate a contract with Anaergia for Phase Zero-$30,000, and modify the contract with
Minas Energy to redirect the $10,000 for an FCM funding application to Feedstock and Digestion
plan development.
2.In an effort to expediate the civil works, a geotechnical analysis will be required to be commenced
by May 20, 2018 This is necessary in order for design of the site and technology to commence.
The estimated costs ranges from $30,000 to $50,0000. It is recommended that we not proceed
with this work unless we can secure feedstock and a plan for digestate that is satisfactory to
MODC.
BACKGROUND
MODC received a COMFIT approval for a 500KW Biogas Energy generation facility at Kaizer Meadows in
February 2015. The Department of Energy requires that a project be operational by February 25, 2019.
The COMFIT approval was obtained by MODC as a follow through on a recommendation contained in an
Energy Strategy developed for MODC by Minas Energy. A Dry Anaerobic Digester Feasibility Study was
completed in 2015 by Strum Environmental. The project was deemed not to be feasible due to
preprocessing costs and costs to handle / treat the digestate (post processing).
In January 2018 MODC undertook a Wet Anaerobic Digester Feasibility Study, based upon an unsolicited
proposal from Minas Energy. The findings were similar to the Dry Anaerobic Digester Feasibility Study.The
Study involved a technology assessment, for which an Expression of Interest was completed. Anaergia was
shortlisted as a company for which to explore further. An aergia proposed an alternative to organics, being
biosolids. This is the focus of this Request for Decision.
DISCUSSION
The Feedstock Characterization Study for source separated organics noted that the contamination levels
for source separation organics were at 2 3 percent. This resulted in the need for pre-processing of the
feedstock prior to putting through the wet anaerobic digestion process.In addition, the back end
digestate (material that comes out the back end)requires processing,this resulted in a business plan that
required in excess of 20,000 tonnes of organic material to make it feasible. That volume of tonnage is
difficult to secure, considering all of Lunenburg County generates about 7,000 tonnes.In addition, the tip
fee was not competitive enough to attract volume from elsewhere, including within Lunenburg County.
Anaergia thence proposed an alternative feedstock -biosolids.Approximately 21,500 tonnes would be
required. MODC processes 2,500 and thus a source would have to secured.An alternate municipal
corporation was approached to determine volumes available.From our meeting, it was concluded that
this entity has the required volumes and are interested in discussing this should the price work out.
The timeline is very tight and staff do have concern that it might not be met. There is less than 10 months
remaining to undertake a significant capital project. The risk is revoking of COMFIT approval, which is a
3 REQUEST FOR DECISION
significant source of revenue in the business case. Preliminary discussions with the Department of Energy
suggest if we are slightly over they would “probably” not raise any issue with it. If there is a significant
delay it is unclear what they would do.
Minas Energy has proposed an mitigative solution to the timeline dilemma, which involves burning of Fat,
Oil and Grease (FOG)in a combustion engine to generate the electricity needed under COMFIT by the
deadline of Feb 19, 2019. This will buy additional time to finalize the wet anaerobic digestion
The capital costs proposed by Minas is $7.5 M. The business case is attached, showing a profit of
approximately $960,000 per year
There are several outstanding matters that need to be answered prior to confirming whether the project is
feasible, these include:
1.Approval from the Department of Energy for:
a.a change in Feed Stock from Organics to Biosolids.
b.Business Case
2.Approval from Department of Municipal Affairs (DMA)for borrowing, which will involve
submitting a viable business case.DMA may have additional requirements.
3.Approval from Department of Environment, if required.
4.A Business Case. While one has been provided there are a number of outstanding questions:
a.Contract for feedstock that is long term (20 years) at a minimum of $70 per tonne
b.Plan for digestate, with known costs (is there a market for the digestate, will there be
costs associated with its disposal?)
c.Cost to store material over winter months (assessment of lagoon capacity or storage tank
requirements for biosolids-approximately 6-7,000 tonnes)
d.Details of Operating and Maintenance Agreement of Anaergia.
e.Useful life of equipment (to determine if its useful life ends before or after financing is
complete)
f.Equipment warranty and performance guarantees.
5.Timeline to be provided by Minas for completion of the project, so as to provide assurances that
project will meet timeline.
6.Mitigation of timeline risk scenario-costs, revenue,contract for feedstock (FOG)
The risk in proceeding with the Phase Zero ($30,000)contract is that the discovery of the answers to the
outstanding matters leads to the conclusion that the project is not feasible ($30,000). Under normal
circumstances this work would be completed prior to engineering starting. However, we are required to
work within the COMFIT timelines and thus if Council wishes to pursue the opp ortunity this decision has
to be made without all the information at hand.
4 REQUEST FOR DECISION
Phase Zero is estimated to take six weeks to complete.The following work would be completed by
Anaergia for $30,000:
Engineering to finalize firm price (PFD, R&ID, List of instruments, List of Valves, Pipe-Schedule,
equipment specification cut sheets, Tank RFI, Foundation /concrete pad design inputs such as
static /dynamic load details,etc.)
Support efforts to secure building permit
Support efforts to secure environmental and other permits
Facility Operations and Maintenance contract
Equipment purchase agreements
The following work will be completed by Minas as part of the existing feasibility study, by reallocating the
FCM grant application work ($10K) to:
Feedstock and Offtake Letters of Intent
o Developing Feedstock securing plan
Developing Digestate handling plan
o Securing Letters of Intent from entities showing possible purchase /disposal agreements
for digestate.
General contract for project development
IMPLICATIONS
.
Policy
Procurement Policy P-04. The Procurement Policy, requires competitive procurement through a Public
Tendering Process. An Expression of Interest was created, in which it was noted that the Municipality may
or may not proceed with a subsequent contract wi th a proponent and the Municipality may amend the
Expression of Interest content/conditions, of which the feedstock has changed to biosolids
Minas shortlisted the submissions and from the shortlist recommended Anaergia as the proponent to
move forward with. It is recommended by Minas that we only commit to Phase Zero at this point. If the
project is deemed feasible, MODC would engage in a full contract with Anaergia for a wet anaerobic
digestion technology.
Financial/Budgetary
The total project is estimated at $7,500,000. This is a rough order of magnitude costs and will be firmed
up in Phase Zero.
The Business plan proposed a $960,000 net profit, with assumptions noted (costs, feedstock tip fees, $0 to
dispose of digestate)
Approval from DMA and subsequently the Municipal Finance Corporation for financing the $7,500,000
5 REQUEST FOR DECISION
Environmental
An environmental approval may be required and staff and Minas are in the process of determining this.
Strategic Plan
o Promote conditions conducive to fostering economic prosperity.
Work Program Implications
If Council opts to proceed the Strategic Priorities Chart will have to be revised so as to remove a priority
to fit this in the work program.
OPTIONS
Council has the following options:
1.Proceed as recommended by Minas and select Anaergia as the successful proponent and
negotiate a Phase Zero of the project, at a cost of $30,000 with a timeline of approximately 6
weeks.
Proceed with a geotechnical analysis on or before May 20, 2018, subject to securing feedstock
and a digestate plan.
2.Not proceed with the project given the inability of staff to confirm the project is feasible given the
timelines, and outstanding matters.
3.Defer a decision until further information can be provided.
ATTACHMENTS -
Schedule A-Business Case (in-camera)
Schedule B-Presentation from Minas Energy and WEnTech Solutions Inc.
Schedule C-Feedstock Characterization Study
COMMUNICATIONS (INTE RNAL/EXTERNAL)