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HomeMy Public PortalAbout2018-04-26_Council_Agenda PackagePage 1 of 2 of Agenda Cover Page(s) 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)