agenda for the regular meeting of council to be held

AGENDA

FOR THE REGULAR MEETING OF COUNCIL TO BE HELD MONDAY, January 26, 2015 AT 6:30 P.M.

IN COUNCIL CHAMBER 91-1ST STREET NW, NAKUSP

CALL TO ORDER – Mayor Hamling at _________ PM INTRODUCTION OF LATE ITEMS a) b) A. AGENDA APPROVAL R/15 - Adopt Agenda

Moved by Councillor ______, Seconded by Councillor ________ THAT the agenda be approved as amended/submitted.

CARRIED B. MINUTES

1. Minutes of January 12, 2015 Regular Meeting of Council R/15

Moved by Councillor __________, Seconded by Councillor _____________ THAT the Minutes of January 12, 2015 Regular Meeting be approved as amended/submitted.

CARRIED

C. DELEGATIONS, PETITIONS, PRESENTATIONS

1. Nakusp and Area Trails Society- Representative from the Nakusp Area Community Trails Society will be presenting their proposal to improve the Wrap Around Nakusp Trail and the development of the abandoned rail bed with in the boundary of the village.

D. BUSINESS ARISING FROM THE MINUTES

1. Nakusp Chamber of Commerce- street banner request R/15

Moved by Councillor _____________, Seconded by Councillor __________ That the Nakusp and District Chamber of Commerce be referred to the Ministry of Highways for further discussion regarding the feasibility of banners crossing the highway for promotional purposes.

CARRIED 2. District Energy (Biomass)

R/15

Moved by Councillor _____________, Seconded by Councillor __________ THAT a Village owned and operated District Energy (Biomass) system

be endorsed in principle by the Nakusp council; and that the CAO be authorized to develop and submit a grant application to the Gas Tax Strategic Priorities fund for the development of the system; and further, that the Village investigate the opportunity for partners in this initiative.

CARRIED

E. UNFINISHED BUSINESS - Outstanding Actions on Resolutions R/15

Moved by Councillor __________, Seconded by Councillor ________ THAT the Outstanding Action on Resolutions report be received for information.

CARRIED F. REPORT FROM ADMINISTRATION R/15

Moved by Councillor __________, Seconded by Councillor ___________ THAT the report from the Chief Administrative Officer be received for information.

CARRIED

G. BYLAW APPROVAL

1. 2015 Water Rates R/15

Moved by Councillor __________, Seconded by Councillor ________________ THAT the “Water Rates and Regulations (2015) Amendment Bylaw No. 463-20, 2015” be reconsidered and finally adopted.

CARRIED 2. 2015 Sewer Rates

R/15

Moved by Councillor __________, Seconded by Councillor ________________ THAT the “Sewer Rates (2015) Amendment Bylaw No. 644-3, 2015” reconsidered and finally adopted.

CARRIED

H. NEW BUSINESS 1. Beaton Arm Crossing Association-

R/15

Moved by Councillor ___________, Seconded by Councillor _________

CARRIED

2. 2015 AKBLG- conference planning update

R/15

Moved by Councillor ___________, Seconded by Councillor _________ THAT the 2015 AKBLG Conference update dated ______ be received for information.

CARRIED 3. Hot Springs Website- Launch

R/15

Moved by Councillor ___________, Seconded by Councillor _________ THAT the report on the Hot Springs Website launch be received for information.

CARRIED 4. Arrow Lakes Search and Rescue (ALSR)

R/15

Moved by Councillor ___________, Seconded by Councillor ________________ THAT the Village agree to the January 16, 2015 request from Arrow Lakes Search and Rescue Association (ALSAR) to purchase a command vehicle on the behalf of the Association subject to the finalization of a formal agreement which specifies conditions to the satisfaction of Village staff including the guarantee that the vehicle will be purchased from the village by ALSAR within 30 days of initial purchase and that the ALSR Association works with Village staff to ensure compliance to the Village purchasing policy and any legislative obligations; and further, that the CAO is given authority to negotiate the agreement with the ALSAR Association.

CARRIED 5. Call for Resolutions AKBLG

R/15

Moved by Councillor ___________, Seconded by Councillor _________

CARRIED 6. Hot Springs Roof Replacement Project R/15 Moved by Councillor ___________, Seconded by Councillor _________

That staff be authorized to proceed with a contract between the Village of Nakusp and DJM Contracting for roof replacement at the Hot Springs facility and the Cedar Chalets as per the information provided.

CARRIED

INFORMATION

1. Information Items I1-I6 R/15

Moved by Councillor _______, Seconded by Councillor _______ THAT items I1-I6 be received for information, and that item(s) ____ be brought forward for discussion.

CARRIED

J. INQUIRIES BY COUNCIL OF ADMINISTRATION K. NOTICE OF MOTION L. QUESTIONS FROM THE PRESS OR PUBLIC M. NOTICE OF IN-CAMERA MEETING R/15 Notice of In Camera Meeting

Moved by Councillor _______________, Seconded by Councillor __________ THAT in the opinion of Council, and in accordance with Section 90 of the Community Charter, the public interest so requires that persons other than Councillors and staff be excluded from the meeting, AND FURTHER, that the meeting be closed on the basis identified in the following subsections: Section 90(1)c. labour relations or other employee relations; d. the security of the property of the municipality;

CARRIED N. ITEMS BROUGHT FORWARD FROM IN-CAMERA O. ADJOURNMENT R/15

Moved by Councillor _________________, Seconded by Councillor _________ THAT the meeting adjourn at _________ PM.

CARRIED

Agenda Item B1

DRAFT MINUTE(S) REPORT STAFF RECOMMENDATION(S): That the following Minutes be approved as submitted/amended.

1. January 12, 2015 Regular Minutes

Agenda Item B1

“DRAFT” MINUTES FOR THE REGULAR MEETING OF COUNCIL

HELD MONDAY, January 12, 2015 AT 6:30 P.M. IN COUNCIL CHAMBER

91-1ST STREET NW, NAKUSP Present were: Mayor Karen Hamling Councillors Ulli Mueller Bill Tobey Len Heppner Tom Zeleznik Staff Linda Tynan, Chief Administrative Officer Clyde Bersky, Director of Finance Richard Cann, Assistant Manager Arena/Parks Regrets Terry Warren, Fire Chief Gallery CALL TO ORDER – Mayor Hamling at 6:30 PM INTRODUCTION OF LATE ITEMS a) H5- Land Development Readiness Marketing Workshop b) H6- Kinsmen Health Building A. AGENDA APPROVAL R1/15 - Adopt Agenda

Moved by Councillor Heppner, Seconded by Councillor Mueller THAT the agenda be approved as amended.

CARRIED B. MINUTES

1. Minutes of December 8, 2014 Regular Meeting of Council R2/15

Moved by Councillor Mueller, Seconded by Councillor Heppner THAT the Minutes of December 8, 2014 Regular Meeting be approved as submitted.

CARRIED

C. DELEGATIONS, PETITIONS, PRESENTATIONS

1. Service Recognition - Mayor Hamling presented Terry Warren, Fire Chief and Richard Cann, Assistant Manager Arena/Parks with 10 year service recognition pins. Terry Warren, Fire Chief was unable to attend.

2. Water and Sewer (Utilities) Presentation – Linda Tynan, Chief Administrative Officer, Clyde Bersky, Director of Finance, and Warren Leigh presented council with a presentation giving an overall review of the water and sewer utilities; results of 2014 operations; update on reserve balances and proposed rates for 2015.

D. BUSINESS ARISING FROM THE MINUTES

E. UNFINISHED BUSINESS - Outstanding Actions on Resolutions R3/15

Moved by Councillor Heppner, Seconded by Councillor Mueller THAT the Outstanding Action on Resolutions report be received for information.

CARRIED F. REPORT FROM COUNCIL COMMITTEES R4/15

Moved by Councillor Heppner, Seconded by Councillor Mueller THAT the reports from Council Committees be received for information.

CARRIED

G. BYLAW APPROVAL

1. 2015 Water Rates R5/15

Moved by Councillor Mueller, Seconded by Councillor Heppner

THAT the “Water Rates and Regulations (2015) Amendment Bylaw No. 463-20, 2015” be introduced a read a first and second time.

CARRIED

R6/15

Moved by Councillor Heppner, Seconded by Councillor Mueller THAT the “Water Rates and Regulations (2015) Amendment Bylaw No. 463-20, 2015” be read a third time.

CARRIED 2. 2015 Sewer Rates

R7/15

Moved by Councillor Heppner, Seconded by Councillor Mueller THAT the “Sewer Rates (2015) Amendment Bylaw No. 644-3, 2015” be introduced a read a first and second time.

CARRIED

R8/15

Moved by Councillor Heppner, Seconded by Councillor Zeleznik THAT the “Sewer Rates (2015) Amendment Bylaw No. 644-3, 2015” be read a third time.

CARRIED

H. NEW BUSINESS

1. Street Banners- Chamber of Commerce

R9/15

Moved by Councillor Mueller, Seconded by Councillor Heppner That the request from the Nakusp and District Chamber of Commerce be referred back to staff for recommendations and report back to council.

CARRIED 2. Building Inspection Service

R10/15

Moved by Councillor Heppner, Seconded by Councillor Mueller THAT the Memorandum of Understanding from the Regional District of Central Kootenay regarding Building Code Amendments dated January 6, 2015 be received for information.

CARRIED 3. Canadian Mountain Holiday Inc- Airport Hangar Lease

R11/15

Moved by Councillor Mueller, Seconded by Councillor Heppner THAT the Mayor and Corporate Officer be authorized to execute a five year renewal of the lease between the Village of Nakusp and Canadian Mountain Holiday Inc. to operate an airport hangar and a helicopter flight business and further on the same terms and conditions as the existing lease.

CARRIED 4. Upcoming Grants

R12/15

Moved by Councillor Mueller, Seconded by Councillor Zeleznik That the information regarding Build Canada fund and Federal Gas Tax Strategic Priorities fund be received for information.

CARRIED 5. Land Development Readiness Marketing Workshop

R13/15

Moved by Councillor Mueller, Seconded by Councillor Heppner THAT village pay for mileage for council members attending the Land Development Readiness Marketing Workshop in Silverton on Monday, January 19, 2015.

CARRIED 6. Kinsmen Health Building

R14/15

Moved by Councillor Mueller, Seconded by Councillor Heppner THAT the CAO be directed to negotiate lease with Options for Sexual Health for a 5 year term for the use and rehabilitation of the Kinsmen Health Building, and further, that the Mayor and CAO be authorized to execute the lease once finalized..

CARRIED

INFORMATION 1. Information Items I1-I7

R15/15

Moved by Councillor Heppner, Seconded by Councillor Mueller THAT items I1-I6 be received for information, and that no item be brought forward for discussion.

CARRIED

J. INQUIRIES BY COUNCIL OF ADMINISTRATION K. NOTICE OF MOTION L. QUESTIONS FROM THE PRESS OR PUBLIC M. NOTICE OF IN-CAMERA MEETING R16/15 Notice of In Camera Meeting

Moved by Councillor Heppner, Seconded by Councillor Tobey THAT in the opinion of Council, and in accordance with Section 90 of the Community Charter, the public interest so requires that persons other than Councillors and staff be excluded from the meeting, AND FURTHER, that the meeting be closed on the basis identified in the following subsections: Section 90(1)c. labour relations or other employee relations; d. the security of the property of the municipality;

CARRIED N. ITEMS BROUGHT FORWARD FROM IN-CAMERA O. ADJOURNMENT R17/15

Moved by Councillor Heppner THAT the meeting adjourn at 8:27 PM.

CARRIED _______________________________ _____________________________ Mayor Corporate Officer

AGENDA ITEM C1

DELEGATION DATE: January 21, 2015 SUBJECT: Nakusp and Area Community Trails Society TO: Mayor and Council FROM: Linda Tynan, Chief Administrative Officer Representative from the Nakusp Area Community Trails Society will be presenting their proposal to improve the Wrap Around Nakusp Trail and the development of the abandoned rail bed with in the boundary of the village. ATTACHMENTS: 1. Information and Maps

AGENDA ITEM D1

STAFF REPORT – Request for Council Decision DATE: January 23, 2015 SUBJECT: Nakusp Chamber of Commerce- Street Banners TO: Mayor and Council FROM: Linda Tynan, Chief Administrative Officer STAFF RECOMMENDATIONS: That council pass the following resolution:

“That the Nakusp and District Chamber of Commerce be referred to the Ministry of Highways for further discussion regarding the feasibility of banners crossing the highway for promotional purposes.”

BACKGROUND The Village received the attached letter from the Chamber of Commerce in regards to the purchase of street banners. Council passed a resolution requesting staff to look into the matter. The Village of Nakusp does not own any type of man lift so if banners were to be erected it would have to be done through the use of ladder (which is not a viable option). In addition, prior to considering this issue further, the Chamber of Commerce would require Ministry of Highways approval as most of the main lines coming into Nakusp are Highways. Public Works staff has indicated that given current resources, we are unable to maintain the banners that we currently have erected and are facing an issue with height restrictions due to the Christmas lights resulting in a number of new banners which are broken or which have been removed. It is recommended that the Village focus on addressing this issue prior to looking into the matter of banners further. In some municipalities with full time, paid fire departments, fire department staff resources are used to erect banners but this is not a recommended approach with a volunteer fire department where availability of time from volunteers is at a premium. OPTIONS:

• That the Chamber be advised that the Village of Nakusp does not have the resources to assist with a banner program at this time and further, advise the Chamber that MOT permission would be required before investigating further.

• That council refer the matter back to staff for further review and report. Prepared by: Linda Tynan, CAO

Nakusp & District Chamber of Commerce | PO Box 387, 92 – 6th Avenue NW | Nakusp BC V0G 1R0 250-265-4234 phone | 250-265-3808 fax | www.nakusparrowlakes.com

Village of Nakusp 91 1st Street NW Box 280 Nakusp, BC V0G 1R0

December 3, 2014 Dear Mayor and Council, The Nakusp & District Chamber of Commerce is considering purchasing 3 banners that could be suspended above the street over the three main entrances to the Village. The banners include exchangeable letters and can be used to announce events, welcome groups that are visiting town, announce elections, etc. (Please see attached image of banner.) Before we proceed with such a purchase, we would like to make sure they could be used, and so we have a few questions:

• Would Village staff be able to put them up and take them down? • What would be involved in getting permission to hang the banners? • Do you have any suggestions for ideal locations?

Thank you for your consideration of this matter. We look forward to your reply.

Sincerely, Peter Welkerling President Nakusp & District Chamber of Commerce 92 6th Ave. NW Nakusp, BC V0G 1R0 tel: 250 - 265- 4234 toll free: 1-800-909-8819 fax: 250-265-3808 www.nakusparrowlakes.com email: [email protected]

AdminAsst

Typewritten Text

Agenda Item D1(a)

AdminAsst

Typewritten Text

Agenda Item D1(b)

AGENDA ITEM D2

STAFF REPORT – Request for Council Decision DATE: January 21, 2015 SUBJECT: District Energy (Biomass) TO: Mayor and Council FROM: Linda Tynan, Chief Administrative Officer STAFF RECOMMENDATIONS: That council pass the following resolution:

That a Village owned and operated District Energy (Biomass) system be endorsed in principle by the Nakusp council; and that the CAO be authorized to develop and submit a grant application to the Gas Tax Strategic Priorities fund for the development of the system; and further, that the Village investigate the opportunity for partners in this initiative.

PURPOSE: To affirm council’s interest in the development of a Village owned District Energy (biomass) system as a result of the review of the business case study prepared by Wood Waste 2 Rural Heat (David Dubois) and to authorize staff to work on this project through a grant application to the SPF (Gas Tax), continued work with Mr. Dubois, and exploration of partnership opportunities in the community. BACKGROUND: In early January, council received a business case report on District Energy (biomass) prepared by Mr. David Dubois (Wood Waste 2 Rural Heat). The conclusions in the report included:

• There exists a financial case for the Village of Nakusp to look at developing a biomass-fueled district heating system that would result in energy savings for clients who are connected

• The capital cost for phase 1&2 is just over $1,200,000 • It is expected that with completion of phase 1&2, the system should generate approximately

$22,000/year in net revenue • The completion of Phase 2 as a stand alone system has the strongest economic case • The system would consume about 185 BDT of biomass, resulting in approximately one gravel truck

load every 1.5 to 2 weeks. The business case report provides information to indicate that this may be a feasible project which would benefit the Village of Nakusp. Further work will be required should council agree to the project in principle. Funding opportunities must be pursued, potential partners approached, a business model further defined, etc, The Village of Nakusp will benefit by being the owner/operator of a District Energy system. Legislation regarding BC Utility Commission (BCUC) is limited when the municipality is the owner of the utility. In the future, the District Heating system may be expanded using new sources of energy and will have the possibility of bringing further revenues into the Village. Municipalities who own and operate utility systems have been able to offset property taxes with revenues generated by the energy system.

of 2

Even as the owner/operator of the system, partners will be required for the projects. For example, in the business case study, a potential location for the biomass plant was identified as property belonging to the Youth Centre. The Village will approach such potential partners and determine whether there could be mutual benefits by working together on the project. FINANCIAL IMPLICATIONS: The preliminary figures indicate that the capital cot for both phase 1&2 is just over $1,200,000. Application to potential funding sources (grants) is key to the next step of development. See preliminary figures as included in the report. ATTACHMENTS:

1. Biomass District Heating Business Case (Wood Waste 2 Rural Heat Project 2015-01-05) Prepared by: Linda Tynan, CAO

Village of Nakusp

Biomass District Heating

Business Case

Prepared by:

Wood Waste 2 Rural

Heat Project

2015-01-05

Funding for Wood Waste 2 Rural Heat provided by:

AdminAsst

Typewritten Text

Agenda Item D2(a)

Nakusp District Heating Business Case

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Executive Summary Currently, buildings in Nakusp are heated using propane, electricity and fuel oil. The primary sources are

propane and electricity. The average price of propane per year varied from $0.63/l to $0.82/l (at times

throughout the year the price of propane could be over $1.00/l). Factoring the efficiency of each

building’s heating system, the price of energy ranged from $31.21/GJ to $46.21/GJ1. The average price

of electricity for the arena was $0.085/kWh which equals $23.53/GJ.

The Village of Nakusp is interested in developing a District Heating System (DH) capable of supplying

heat to a number of potential clients. The following map lays out the different potential phases. Phase

one is Nakusp Senior Secondary and Elementary schools. Phase two is the Arena, and emergency

services building and daycare. Phase three would be the downtown core. It is based on locating the

energy centre in conjunction with the new Nakusp Area Youth Services building currently being

considered.

Figure 1 DH System Layout

It is estimated that phase one will require approximately 85 Bone Dry Tonnes (BDT) of biomass per year.

Phase two will require 100 BDT. It is expected that phase 3 will require 100 BDT for a total of 285 Bone

Dry Tonnes.

1 One Gigajoule or GJ is a measure of energy. In this report it is the basis for comparing various types of energy including propane, electricity and fuel oil. One litre of propane or fuel oil contains 0.0253 GJ and 0.0387 GJ respectively. One kWh of electricity equals 0.0036 GJ.


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Phase one would require approximately 175 kW of boiler capacity. This includes approximately 50 kW of

capacity to heat the youth centre. Phase two would require 200 kW. The size of the boiler for Phase

three presents the largest unknown because of the lack data and level of complexity. Therefore this

report will only focus on phases one and two.

The capital cost of building phase one and two as separate standalone systems is $538,000 and

$782,000 respectively. If Phase one was built first and then upgraded to include phase two the capital

cost would be $586,000 and $632,000 for a total capital cost of $1,218,000.

The Operating and Maintenance costs are summarized below. It would require 0.1 FTE to operate the

system. Wood chips are currently available for approximately $30/BDT but it is anticipated that 60/BDt

is a more sustainable price. The average operating cost was assumed to be $24.5/GJ.

Table 1 Summary of Operating and Maintenance Costs

Phase Cost Component

Medium

Cost

$60/BDT

Low Cost

$30/BDT

Total Operating Costs $30,900 $28,300

Cost of Energy Sold $/GJ $24.18 $22.14





Phase 1

Phase 2

Phase 1

and 2

A variety of scenarios has been done varying the sale price of heat, amount of grants and price of wood

chips. The most likely scenario is based on selling heat at $28.18/GJ (cost plus 15%). The revenue must

be sufficient to cover expenses, provide for future plans and generate income. In addition it must also

offer an incentive for perspective clients to connect. Client savings will range between 10-40% with a

15% markup. It is estimated that these savings will be sufficient to get clients to connect. A grant of

approximately 60% would be required to make the DH system generate revenue. Alternately the system

could viable with a 25% grant.


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Table 2 Summary of Financial Analysis based on $60/BDT and Heat Sale Price of $28.18/GJ

Phase 1

Project Cost $538,000 $538,000 $538,000

Grant 0% 25% 60%

Grant funding $0 $134,500 $322,800

Capital Cost $538,000 $403,500 $215,200

Annual Revenue $22,000 $22,000 $22,000

Simple payback (Years) 24.5 18.3 9.8

NPV -$263,800 -$129,300 $59,000

IRR -2% 1% 8%

Phase 2

Project Cost $782,000 $782,000 $782,000

Grant 0% 25% 60%

Grant funding $0 $195,500 $469,200

Capital Cost $782,000 $586,500 $312,800

Annual Revenue $32,000 $32,000 $32,000


NPV -$115,500 -$6,700 $145,700

IRR -2% 1% 8%

Phase 1 & 2

Project Cost $1,218,000 $1,218,000 $1,218,000

Grant 0% 25% 60%

Grant funding $0 $304,500 $730,800

Capital Cost $1,218,000 $913,500 $487,200

Annual Revenue $60,000 $60,000 $60,000


NPV -$301,000 -$132,100 $104,300

IRR 0% 3% 11%

Heat Price = Cost + 15% = $28.18/GJ

Fuel Costs $60/BDT

The DH system should either be wholly owned by the Village or as a partnership between the Village and

private partners (not-for-profit or for-profit entities).

If the community of Nakusp is interested in proceeding it is recommended they determine which

business model is of interest and begin to develop those partnerships. Further funding for the project

either to be used initially to finalise engineering and design, or funding to complete the entire project

should be pursued.


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Contents

Executive Summary ................................................................................................................................. 2

Background ............................................................................................................................................. 6

Energy Cost and Consumption ................................................................................................................. 6

District Heating System Concept .............................................................................................................. 7

Building Suitability ............................................................................................................................... 9

Phase 1 - Schools ................................................................................................................................. 9

Phase 2 - Westside of Eighth Avenue ................................................................................................. 10

Phase 3 - Commercial Buildings in Downtown .................................................................................... 10

Fuel Selection and Storage ................................................................................................................. 10

Boiler Sizing ....................................................................................................................................... 12

Heat Storage...................................................................................................................................... 13

Heat Distribution ............................................................................................................................... 13

Biomass Heating System Economic Analysis .......................................................................................... 14

DH System Capital Cost ...................................................................................................................... 14

Operating and Maintenance Costs ..................................................................................................... 17

Fuel Cost ........................................................................................................................................ 18

Carbon Offsets ............................................................................................................................... 20

Total Operating Cost ...................................................................................................................... 20

Financial Analysis ............................................................................................................................... 20

Pellets............................................................................................................................................ 24

Potential Business Models ................................................................................................................. 25

Conclusions ........................................................................................................................................... 27

Recommendations ................................................................................................................................ 28

Disclaimer ............................................................................................................................................. 28

Acknowledgements ............................................................................................................................... 28


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Background Nakusp has a number of businesses that create a variety of wood products. These businesses generate

significant amounts of woody debris that currently has limited value. Nakusp is not connected to the

natural gas grid and it is highly unlikely they ever will be, given their location. The community (including

local government and business) is interested in developing additional value for the woody debris. The

initial and most logical market was for District Heating (DH). The Wood Waste 2 Rural Heat project

(WW2RH) was approached by Councillor Tom Zelznik to come into the community to explore the level of

interest. Wood Waste 2 Rural Heat Coordinator David Dubois visited Nakusp in the fall of 2013 and did a

preliminary assessment of Village-owned buildings. Appendix 1 contains the results of this initial

favourable assessment. Additional follow-up visits were completed during the first half of 2014. Mr.

Dubois visited a number of potential fuel suppliers, toured buildings that could potentially connect to

the system, as well as making presentations to community groups. The result is that the community

decided that developing a DH system had potential merit but more information was needed. On behalf

of the community, the Village has asked WW2RH to provide a business case for proceeding with

developing a DH system.

This business case will look at the following:

1. current cost of energy in Nakusp,

2. the energy consumption of potential anchor clients,

3. the capital cost of a DH system (including energy center, piping and connection), but not land

acquisition,

4. the financial viability of the system and its sensitivity to certain parameters,

5. provide direction for next steps in developing a biomass heating system.

The business case should not be considered an engineering or design plan. Any estimates in regards to

equipment sizing, specifications, layout, etc. are for information purposes only.

Energy Cost and Consumption Currently, buildings in Nakusp are heated using propane, electricity and fuel oil. The primary sources are

propane and electricity. Data was provided to WW2RH by Village staff, Arrow Lakes School District and a

private business. All of the buildings are currently heated with propane with the exception of the Arena

which uses electricity. The individual data sets covered between two to six years of data. The average

price of propane per year of each building varied from $0.63/l to $0.82/ l. It is worth noting that at times

throughout the year the price of propane could be over $1.00/l. Factoring the efficiency of each

building’s heating system, the price of energy ranged from $31.21/GJ to $46.21/GJ2.

2 One Gigajoule or GJ is a measure of energy. In this report it is the basis for comparing various types of energy including propane, electricity and fuel oil. One litre of propane or fuel oil contains 0.0253 GJ and 0.0387 GJ respectively. One kWh of electricity equals 0.0036 GJ.


7 | P a g e

The average price of electricity for the arena was $0.085/kWh which equals $23.53/GJ. The average

price of energy across all the data set is $42.47/GJ. This price represents the cost of energy after heat

production3 at the point of consumption (in the pipe or duct).

The energy consumption for heating of the various buildings is shown in Table 3

Table 3 Energy Consumption

Building 1Input

Energy (GJ)

Output

Energy

(GJ)

Percentage

of Total

Arena 1219 1219 33%

Nakusp Senior Secondary 1230 984 27%

Commercial Building 1283 898 24%

Nakusp Elementary School 372 297 8%

Emergency Services Building 335 268 7%

TOTAL 4439 3666 1. In some buildings not all the energy was used for heating so it was necessary to estimate heat only consumption from

the data set

If the DH system was to supply only these five buildings it would use approx. 220 bone dry tonnes (BDT)

of biomass per year4 (1300 cubic meters/year of wood chips). This is equal to approximately 9 ‘B’ train

chip trucks per year (shown in Figure 2). The most likely delivery vehicle would be single or tandem axle

gravel truck or similar.

Figure 2 'B' Train Chip Truck Configuration (source: Arrow Transportation (Transportation))

District Heating System Concept The concept for the Village of Nakusp DH system is to supply heat to a number of buildings in the area of

Sixth to Eighth Streets including the Arena, Emergency Services Building (ESB), the Elementary and High

Schools, as well as other commercial buildings. Initial interest was positive from a variety of potential

clients including Overwaitea, Selkirk Inn, Kal Tire and others. Other potential clients that may connect

would be Halcyon House, K2 Rotor Lodge and others (Figure 3Error! Reference source not found.). It is

expected that the results of this business case would be used to further confirm support and be used to

develop firm agreements.

3 Different heating appliances have different efficiencies based on age, technology, etc. A system that has a lower overall efficiency will use more fuel. 4 The moisture content of biomass can have a significant impact on the amount of energy available. It is typical to express biomass consumption rates assuming no moisture or as a Bone Dry tonne (BDT).


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Figure 3 District Heating System Layout

The two main components are the Energy Centre (EC) and the Distribution Network (DN). The EC will

house the biomass boiler, biomass fuel storage, control equipment and heat storage. The DH is the

series of hot water supply and return pipes that will be used to transfer heat to the various clients.

A number of potential sites were identified for the EC. The first would be on Village property in the

vicinity of the ESB building by the existing recycle drop off. During some initial discussion with seniors in

the community, there were concerns raised about the aesthetic impacts. A second potential site was on

land currently occupied by the provincial forest service near the corner of First Street and Fifth Avenue.

The third location was on the site of the Nakusp Youth Group Society building, which has been damaged

by fire. The EC could be built in conjunction with a replacement building, and in this case the society

could be a partner in developing the system. For the purposes of this report it will be assumed that the

EC will be located at the youth group site.


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It is assumed that the DN will be located under unpaved laneways as much as possible. The cost of

installing the DN under paved roads would add significantly to the overall capital cost. It is worth noting

that locating the DN outside of any existing utility corridors could pose a risk if the location of the pipe is

not well documented. This report has broken down the DN into three phases. It is possible the phases

could be completed individually or at the same time. Phase one would be to connect the high school and

elementary schools, as well as supply heat to the youth group building. Phase 2 would be the buildings

along the west side of Eighth Avenue, including portions of the ESB, Arena, and potentially the day care

and seniors’ hall. Phase three would include the businesses between Sixth and Seventh Avenues down

to Overwaitea, K2 Rotor Lodge, Kal Tire and potentially further east, depending on demand. The hospital

is also a strong candidate, but it has not been included in this report because of its distance from the

core buildings.

Building Suitability

While it is technically feasible to connect all buildings to a DH, some are more suited than others.

Approximate connection costs were estimated for analysis, but detailed estimates should be confirmed

as part of any further analysis. Buildings heated using hot water (hydronic) are the easiest and cheapest

to connect while electric baseboard tends to be the most expensive. Some buildings have multiple

heating systems and each one would require a separate connection. For example the ESB has one

heating system for most of the office spaces, as well as an individual radiant heating system for the

garage space of each organization (fire, rescue, ambulance).

In some cases, the cost of connecting the clients would be higher than any potential revenue generated.

For example, a building that would cost $20,000 to connect but only generate $500/year in revenue

would not be considered an ideal client, even though the DN might be very close.

In most DH systems, the system operator pays for the cost of running the pipe into the client’s building

to the connection point, as well as supplying an energy transfer station. The energy transfer station

would include a heat exchanger to transfer heat to the clients heating system as well as a meter to track

consumption. This consumption data is then used to bill the client based on the amount of energy used.

Phase 1 - Schools

Phase 1 would see heating to Nakusp Senior Secondary and Nakusp Elementary Schools. The two

schools represent significant load and are relatively close to the EC. The schools would be easy to

connect as they already use hydronic or hot water heating and would require a minimum of retrofitting.

The pipe network would need to cross both Fourth Street and Canyon Road (Sixth Avenue). It is

expected this could be done using directional drilling.

Typically the EC is a stand-alone facility but it is possible to incorporate it into a building with multiple

uses. This represents a likely scenario if the EC is located on the property owned by the Nakusp Youth

Group Society. The design of such as building would not be complicated but would require the design to

address regulations about boiler standards. Figure 4 shows the pellet boiler at Northern Lights College in

Dawson Creek. The boiler is on display within a multiuse space.


10 | P a g e

Figure 4 Northern Lights College Dawson Creek

Phase 2 - Westside of Eighth Avenue

The majority of the buildings within this phase are owned by the Village of Nakusp. The anchor clients

for this phase would be the ESB and the arena. Other potential clients would be the daycare and seniors’

hall; however these buildings represent a small portion of the demand for this phase.

The piping for this phase could be problematic. Installation of pipe along Third or Fourth Street would

require installation under paved roads. Installation of piping under paved roads is more costly than

along unpaved roads. A slightly longer path through the high school was chosen to take advantage of

lower installation costs.

Phase 3 - Commercial Buildings in Downtown

The piping for this phase would run south down the alley between Sixth and Seventh Avenues before

branching west towards Halcyon House and east towards Kal Tire and K2 Rotor Lodge and finally

connecting to Overwaitea. Potential connections for this line would include the previously mentioned

buildings as well as the school board office, Selkirk Lodge and others.

It is expected that this phase might be the most complicated, due to the number of connections and

varied types of building ownerships (Private, Public, Not for Profit).

Fuel Selection and Storage

A biomass-based system can be fuelled by many different forms of fibre from pellets to bush grindings.

Different fuels have different properties. Generally speaking, the more processed the fuel, the higher

the energy content and the cost (i.e. chips are cheaper than pellets but you require more chips to get

the same energy value). Capital costs also go up for less processed fuel because of higher degrees of

variability and larger fuel volumes. Wood chips, unlike pellets, do not flow, and hence a more complex


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fuel handling system is required. Therefore any cost savings due to reduced fuel cost may not cover the

increased capital costs.

For boilers smaller than 500 kW, a dry fuel of less than 30% moisture is needed5. Often times system

operators try to use the cheapest biomass fuel available such as hog fuel6. This can lead to significant

operation and maintenance issues, especially for boilers under about 1 MW. The estimated boiler size

for this system is such that a high quality consistent fuel such as wood chips is used. It is important to

note that many systems of this size can, and do, use chips for fuel but pellets could also be used. This

relates primarily to ease of boiler operation. For this reason, this report will also include pellets as a

potential but less favourable fuel option.

Figure 5 High Quality Pulp Wood Chips

Figure 6 Bush Grind Hog Fuel

Wood chip storage systems are quite simple. The primary function is not to allow moisture (rain, snow,

etc.) to come in contact with the chips. It is important to have good air flow and a concrete or asphalt

floor to prevent contamination. 5 Hubert Steiner, GMX Austria 6 Hog fuel is a very generic term and can refer to a WIDE variety of products which have different properties.


12 | P a g e

Figure 7 Wood Chip Storage

The chip storage for the heat plant would be a simple 2 or 3 sided shed with a concrete floor. Storage

would be approximately 1.5 times the size of the delivery vehicle. The most likely delivery vehicle would

be a tandem axle grain truck. A gravel truck could be used but the volume of chips that can be delivered

is less. The result is that the cost of delivery per tonne of fuel is higher. The exact layout for the fuel

storage bin and boiler house would be determined by the site of the EC.

It is estimated that phase 1 will require approximately 85 BDT of biomass per year. Phase 2 will require

100 BDT. It is expected that phase 3 will require 100 BDT. Once all three phases are completed there will

be a fuel delivery every 1.5 weeks. Therefore truck traffic/noise etc. will be minimal.

Boiler Sizing

Biomass boilers operate best when they are operating at full capacity as much as possible. In order to

maximize the operating time at full capacity, the boiler is typically sized to the average heat demand and

not the peak demand7. For a district heating system the types of clients and how they use the heat will

also have an impact on system sizing. For example schools require heat during the day but are

unoccupied evenings and weekends, whereas the arena would need heat mainly in the evening and on

weekends. For the purpose of this report it is assumed that the EC will be built as part of phase one but

that it will have enough space to add additional boiler capacity as additional phases come on line. Phase

one would require approximately 175 kW of boiler capacity. This includes approximately 50 kW of

capacity to heat a potential youth centre. Phase two would require 200 kW; this includes an estimated

30 kW each for the seniors’ centre and daycare. The size of the boiler for Phase three presents the

largest unknown. Data has only been provided by Overwaitea, with interest being shown by a number of

other potential clients. For the purposes of this business case it is estimated the boiler will be 200 kW.

This is based on who might potentially connect to the system and an estimate of their heat needs.

7 Peak demand refers to the additional heat energy required to supply all of the demand beyond the base or average load.


13 | P a g e

Table 4 Piping Schedule

Phase Boiler Size (kW)

Distance (Metres)

Additional Comments

Phase 1 175 310 2” Mainline and 1” to

Elementary School

Phase 2 200 715 2” Mainline and 1” to ESB

and Daycare

Phase 3 200 610 3” Mainline and 1” to

KalTire

Total 575 1635

It is possible that the time required to complete all three phases could be lengthy. It is anticipated as the

final phase (one, two or three) is installed, that one of the two initial boilers could be traded in for a

larger boiler. Therefore the EC could be designed to accommodate only two boilers and not three.

Figure 8 150 kW Pellet Boiler at Arrow Lakes Fire Attack Base near Castlegar BC

Heat Storage

The heat storage tank is a large insulated tank that stores hot water. It allows for the supply of heat at

peak demands without using more expensive and Green House Gas (GHG) intensive peaking fuel, and

reduces boiler cycling. The heat storage vessel allows for the installation of a smaller capacity boiler

system. Heat can be generated throughout the entire day instead of on demand during peak usage

times.

Heat Distribution

Insulated hot water lines will run underground from the biomass heating system to each building. There

is relatively little elevation change across the system so high distribution pressures should not be

needed. This should be confirmed as part of the next steps. None of the buildings should require high

temperature hot water (greater than 80 or 90o C). Based on these conditions, a pre-insulated PEX piping

system is the preferred distribution solution. In addition, PEX is cheaper than metal pipe, resulting in


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lower capital costs and easier to install, resulting in lower installation costs. It can be simply lowered into

the trench (e.g. no welding and minimal number of personnel). The breakdown of pipe length by size is

illustrated in Table 3.

Figure 9 Pre-insulated PEX pipe from Urecon with Supply and Return

Normally, each building would also include a heat meter to measure the amount of energy being

consumed, and this would be used for billing. The cost of these meters can be expensive.

Biomass Heating System Economic Analysis

DH System Capital Cost

All cost estimates are for budgeting purposes only; except as noted this report assumes typical

installation costs. These costs vary by area and contractor. Estimates from local contractors/suppliers

should be obtained prior to proceeding. The DH system capital cost can be broken down into two

components. The first is the heat plant, which would contain the biomass boilers and fuel storage. The

second is for the distribution piping and retrofitting of existing buildings.

For the purposes of this business case it is assumed that the heat plant will be a stand-alone building.

There has been some interest in having the EC incorporated into a new youth services building. In the

event this happens, the business case should be updated. The EC has a boiler house8 that would contain

the boiler, pumps, heat storage, and all system controls. The capital cost for the heat plant in each of the

individual phases is shown in Table 5. The data in Table 3 assumes each phase is carried out individually

with a separate EC and network installation. The data is included both for chips and pellets. Pellets are

included as a reference only as they represent the most expensive biomass-based fuel. It is worth noting

that the cost estimates for connecting buildings in Phase 3 is very uncertain as the number of clients and

the exact nature of their heating systems is not known (with the exception of Overwaitea, which would

8 The boiler house capital cost is based on a 20’ storage container (20’x8’) or similar stand-alone

building. This is typical for most installations in BC.


15 | P a g e

be expected to be the anchor load for this phase). The total capital cost of all three individual phases is

$2.13 million for chips and $2.06 million for pellets.

Table 5 Individual Phase Capital Cost

System ComponentWood

ChipPellets

Wood

ChipPellets

Wood

ChipPellets

Boi ler House $25,000 $25,000 $25,000 $25,000 $25,000 $25,000

Fuel Storage $30,000 $15,000 $30,000 $15,000 $30,000 $15,000

Boi ler $100,000 $100,000 $125,000 $125,000 $125,000 $125,000

Insta l lation $50,000 $50,000 $50,000 $50,000 $50,000 $50,000

Engineering $25,000 $25,000 $35,000 $35,000 $40,000 $40,000

Misc. $35,000 $32,000 $40,000 $38,000 $41,000 $38,000

Total $265,000 $247,000 $305,000 $288,000 $311,000 $293,000

Pipe $28,000 $28,000 $80,000 $80,000 $114,000 $114,000

Trenching $98,000 $98,000 $199,000 $199,000 $163,000 $163,000

Insta l lation $15,000 $15,000 $15,000 $15,000 $20,000 $20,000

Bui lding connections $30,000 $30,000 $40,000 $40,000 $50,000 $50,000

Total $171,000 $171,000 $334,000 $334,000 $347,000 $347,000

$15,000 $15,000 $15,000 $15,000 $15,000 $15,000

$87,000 $84,000 $128,000 $124,000 $132,000 $128,000

$538,000 $517,000 $782,000 $761,000 $805,000 $783,000

Phase 2 Phase 3

Contingency (20%)

Total Capital Cost

Energy

Centre

Distribution

System

Phase 1

Project Management

A more likely scenario would see the EC in Phase 1 and 2 combined as well as some network layout

resulting in reduced capital cost. This scenario would see phase 3 completed once the system is up and

running successfully. Instead of buying a third boiler for phase three it would be possible to trade in one

of the boilers from phase 1 or 2, thus reducing capital cost and overall space requirements. This business

case will focus primarily and Phases 1 and 2, with a total capital cost of $1.22 million. The total capital

cost for phases 1, 2 and 3 would be $1.87 million for chips.

If a larger boiler is installed as part of Phase 3, the use of hog fuel could be an option. For this reason the

fuel system in this system has been upgraded from a typical circular extractor (Figure 10) to a walking

floor capable of handling a coarser rougher fuel (Figure 11). It is important to note that until a larger

boiler is installed wood chips would be the preferred fuel.


16 | P a g e

Table 6 Combined Phase 1&2 Capital Cost

System ComponentWood

ChipPellets

Wood

ChipPellets

Wood

ChipPellets

Boi ler House $30,000 $25,000

Fuel Storage $50,000 $15,000

Boi ler $100,000 $100,000 $125,000 $125,000 $100,000 $100,000

Insta l lation $55,000 $55,000 $25,000 $25,000 $50,000 $50,000

Engineering $30,000 $30,000 $20,000 $20,000 $30,000 $30,000

Misc. $40,000 $34,000 $26,000 $26,000 $27,000 $27,000

Total $305,000 $259,000 $196,000 $196,000 $207,000 $207,000

Pipe $28,000 $28,000 $80,000 $80,000 $114,000 $114,000

Trenching $98,000 $98,000 $183,000 $183,000 $163,000 $163,000

Insta l lation $15,000 $15,000 $15,000 $15,000 $20,000 $20,000

Bui lding connections $30,000 $30,000 $40,000 $40,000 $50,000 $50,000

Total $171,000 $171,000 $318,000 $318,000 $347,000 $347,000

$15,000 $15,000 $15,000 $15,000 $15,000 $15,000

$95,000 $86,000 $103,000 $103,000 $111,000 $111,000

$586,000 $531,000 $632,000 $632,000 $680,000 $680,000

Phase 2 Phase 3

Contingency (20%)

Total Capital Cost

Energy

Centre

Distribution

System

Phase 1

Project Management

Figure 10 Typical Chip Extraction Unit installed at Granisle, BC


17 | P a g e

Figure 11 Walking Floor Extraction System (photo courtesy of Fink Machine)

Operating and Maintenance Costs

The Operating and Maintenance costs have a number of components. The first cost is for personnel to

operate the system. Most systems are designed to be fully automatic, requiring very little operator

support. Most facilities require about 1-2 hours per week to manage the fuel, empty ash, and do

periodic checks. This equates to a 0.1 FTE. Depending on who is operating the system this small amount

of additional labour may be absorbed by existing staff, so no new personnel should be required. It is

worth noting that the most successful installations have a high degree of operator buy-in. In addition

there is the requirement to do monthly clerical work (billing, filing, etc.). This is assumed to be minimal,

2-3 hours per month, and similar to the operator, will depend on who is operating the system. For the

purposes of this analysis it will be assumed that labour costs are $150/month or $1,800 per year.

The second cost is for regular maintenance. The boiler will require annual service to clean the tubes,

check boiler function, lubricate, etc. This work could be done by onsite personnel, but it may require

support from outside personnel. The cost was assumed at $4,000/year for one boiler and $6,000/year

for two.


18 | P a g e

The system was also assumed to consume $500/year in electricity for pumping and auger systems for

each phase. The system will also require insurance; depending on who owns the system this could be

significant. For the purposes of this business case insurance is assumed to be $3000/year.

Table 7 Operating Cost Comparison

Phase Cost ComponentHigh Cost

$100/BDT

Medium

Cost

$60/BDT

Low Cost

$30/BDTPellets

Insurance $3,000 $3,000 $3,000 $3,000

Wood Chips $8,500 $5,100 $2,500 $14,100

Labour $1,800 $1,800 $1,800 $1,800

Maintenance $4,000 $4,000 $4,000 $4,000

Replacements $17,000 $17,000 $17,000 $17,000

Electrici ty (pumping) $500 $500 $500 $500

Total Operating Costs $34,300 $30,900 $28,300 $40,400

Cost of Energy Sold $/GJ $26.84 $24.18 $22.14 $31.61Insurance $3,000 $3,000 $3,000 $3,000

Wood Chips $10,000 $6,000 $3,000 $16,500

Labour $1,800 $1,800 $1,800 $1,800

Maintenance $4,000 $4,000 $4,000 $4,000

Replacements $24,000 $24,000 $24,000 $24,000

Electrici ty (pumping) $500 $500 $500 $500


Cost of Energy Sold $/GJ $26.05 $23.65 $21.84 $29.96

Insurance $5,000 $5,000 $5,000 $5,000

Wood Chips $18,500 $11,100 $5,500 $30,600

Labour $1,800 $1,800 $1,800 $1,800

Maintenance $6,000 $4,000 $4,000 $4,000

Replacements $38,000 $38,000 $38,000 $38,000

Electrici ty (pumping) $1,000 $1,000 $1,000 $500


Cost of Energy Sold $/GJ $23.91 $20.71 $18.81 $27.18

Phase 1

Phase 2

Phase 1

and 2

It is expected the boiler and fuel handling system will have a life span of 20+ years, while the piping

network and buildings life span is 40+ years. These replacement costs need to be included in the

business case. The cost for the boiler and fuel handling equipment is 5% per year while the network and

buildings are at 2.5% per year. These numbers do not include inflation or interest. The data is shown in

Table 7. The result is that no capital would need to be borrowed at the time of replacement. There is no

provision for debt servicing of the DH system, however it would be possible to reallocate money from

replacements to service debt. The result is that financing may be required for new equipment.

Fuel Cost

Typically fuel costs consist of the chips, as well as the propane or electricity required for peaking and

back up. The initial assumption is that clients will continue to use their existing heating systems to


19 | P a g e

provide peaking and back up to the DH. As the system progresses and depending on load, this could

change with the DH providing all the required heat and having its own peaking and back-up systems. The

net result is that the fuel costs in this business case are only for biomass.

There is currently little or no demand for most waste wood fibre in Nakusp. Box Lake Lumber produces

some wood chips and a large amount of hog fuel. The majority of this is sent to the pulp mill in Castlegar

or, depending on the market, other more distant mills. Generally speaking the cost of trucking the

biomass to these facilities is the major cost. For the purposes of this business case, three wood chip

price scenarios will be used. The low price scenario has chips at $30/BDT including delivery. It is

assumed that it will cost approximately $10/tonne to deliver the wood chips using a tandem axle grain

truck based on a 1 hour cycle time at $100/hr. The medium price scenario is $60/BDT. The high price

scenario is $100/BDT. Both include the $10/tonne delivery cost. $30/BDT is representative of the

current market, while $60/BDT is a conservative estimate of what the market could be if further

development happens and more markets for this material open up. $100/BDT represents an estimated

upper limit of the market; however this far exceeds what the other large players in the market could pay

because of further distance from the source, and hence higher transportation costs.

It is assumed that the DH system will displace 90% of the client’s current heating fuels. Based on the

energy cost and consumption data in Table 3 and estimating the energy consumption of the remaining

buildings, it is possible to estimate the amount of biomass required as well as the cost of operations and

maintenance for phase 1 and phase 2. There is limited data available for clients connecting to phase 3,

therefore no additional analysis will be completed for this phase.

The impact of the price of wood chips varies from 10% of operating cost at $30/BDT to approximately

25% at $100/BDT. The net result is that chip price is important above about $60/BDT. Below $60/BDT

controlling maintenance costs is important. The cost of pellets has also been included for comparison.

Table 8 Biomass Consumption and Cost

Phase Building

DH Energy

Consumption

(GJ)

Equivalent

Biomass

Required

(BDT)

Chip Cost

at Low

Price

$30/BDT

Chip Cost at

Med Price

$60/BDT

Chip Cost

at High

Price

$100/BDT

Pellets at

$170/ton

delivered

Nakusp Secondary 886 60 $1,800 $3,600 $6,000 $9,900

Nakusp Elementary 267 18 $500 $1,100 $1,800 $3,000

Youth Society Bui lding (est.) 125 7 $200 $400 $700 $1,200

Phase 1 Total 1,278 85 $2,500 $5,100 $8,500 $14,100

Arena 1,219 74 $2,200 $4,400 $7,400 $12,200

ESB 268 16 $500 $1,000 $1,600 $2,600

Senior's Hal l (est.) 100 6 $200 $400 $600 $1,000

Daycare (est.) 75 4 $100 $200 $400 $700

Phase 2 Total 1,662 100 $3,000 $6,000 $10,000 $16,500

2,940 185 $5,500 $11,100 $18,500 $31,800Total

Phase 1

Phase 2


20 | P a g e

Carbon Offsets

Phase 1 and phase 2 will result in about 94 tonnes of GHG reduction. At a price of $25/tonne this would

result in approximately $2,400 in potential offsets. This is a very small amount and would be extremely

difficult to monetise at this point in time; therefore any potential revenue from the sale of offsets will

not be included in this business case.

It is worth noting that the reductions in GHG fuels benefit both the school district and to a lesser extent

The Village of Nakusp. So while the DH will not see any revenue, it results in avoided cost for both of

them and adds more incentive for them to connect.

Total Operating Cost

The total operating cost is summarised in Table 7. It shows the data for phase 1 and phase 2 separately

as well as the combined scenario. Based on these operating costs and the expected biomass

consumption listed in Table 8 it is possible to estimate the cost of heat generated per GJ. This represents

the “break-even” point. Looking at the data, it is estimated that a total operating cost of $24.50/GJ

would cover most likely scenarios caused by fluctuating biomass costs to about $60/BDT.

Financial Analysis

Most DH systems generate revenue by selling heat to clients. The average operating cost was assumed

to be $24.5/GJ. This analysis will look at the financial analysis based on selling heat at $26.95/GJ (cost

plus 10%) and $28.18/GJ (cost plus 15%). The revenue must be sufficient to cover expenses, provide for

future plans and generate income. In addition it must also offer an incentive for perspective clients to

connect. Based on the data provided by potential clients they are paying between $31.21/GJ and

$46.21/GJ for propane. Client savings will range between 13-42% with a 10% markup and 10-40% with a

15% markup. It is estimated that these savings will be sufficient to get clients to connect.

The arena was the only building examined that was being heated by electricity at a cost of $23.53/GJ. It

is expected that as BC Hydro rates are increased the price of electricity will be approximately equal to

the sale price of the DH system.

A number of scenarios were analysed to determine a variety of parameters9 including Simple Payback,

Net Present Value (NPV) and Internal Rate of Return (IRR). The analyses were completed based on the

sale price of the heat at the three potential chip costs noted in the Fuel Costs sections. It was assumed

that potential grant funding would range from 0% to 60% (typical of Gas Tax Funding). The remaining

capital would be provided from other sources. Please see potential business models for more details.

The annual revenue shown in Table 9, Table 10, and Table 11 is based on the net revenue minus

operating costs. The operating costs do not include the cost of replacements in these tables.

The data shows that capital cost has greater impact on financial viability than chip price. For example,

when wood chips are at $100/BDT a 70% reduction in cost is similar to a 25% capital cost reduction.

9 The cost of saving for replacements was not included, as in theory this money would be invested in some form of savings vehicle. The NPV is based on a 20-year term and 5% interest and does not include inflation or debt repayment.


21 | P a g e

Therefore it is critical to minimise the upfront capital costs. This can be done either by obtaining grants

or by selecting cost effective equipment.

The sale price for heat in phase 1, phase 2 or phase 1 & 2 should be greater than $28.18/GJ (cost plus

15%).

Phase 1 as a standalone installation is financially viable with approximately 50-60% of grant or equity

funding. The system should generate between $2,000-8,000/year of net revenue depending on the price

of wood chips. This net revenue includes the cost of replacements.

Phase 2 as a standalone installation is financially viable with 25% of grant or equity funding, provided

fuel costs can also be kept below $60/BDT. The system should generate $4-11,000 of net revenue

depending on the price of wood chips. This net revenue includes the cost of replacements.

Combining Phase 1 & 2 results in a project that is marginally financially viable at 25% grant or equity

funding but more would be recommended. The system should generate $13-27,000/year of revenue

depending on the price of wood chips. This net revenue includes the cost of replacements. It is worth

noting that while the simple payback and IRR improve with a combined phase 1 & 2, the NPV does not

improve.

Figure 12 Telkwa Municipal Office with EC Located in Back of Building


22 | P a g e

Table 9 Financial Analysis with Chips at $100/BDT

Phase 1

Project Cost $538,000 $538,000 $538,000 $538,000 $538,000 $538,000

Grant 0% 25% 60% 0% 25% 60%

Grant funding $0 $134,500 $322,800 $0 $134,500 $322,800

Capital Cost $538,000 $403,500 $215,200 $538,000 $403,500 $215,200

Annual Revenue $17,000 $17,000 $17,000 $19,000 $19,000 $19,000

Simple payback (Years) 31.6 23.7 12.7 28.3 21.2 11.3

NPV -$326,100 -$191,600 -$3,300 -$301,200 -$166,700 $21,600

IRR -4% -2% 5% -3% -1% 6%

Phase 2

Project Cost $782,000 $782,000 $782,000 $782,000 $782,000 $782,000

Grant 0% 25% 60% 0% 25% 60%

Grant funding $0 $195,500 $469,200 $0 $195,500 $469,200

Capital Cost $782,000 $586,500 $312,800 $782,000 $586,500 $312,800

Annual Revenue $25,000 $25,000 $25,000 $28,000 $28,000 $28,000


NPV -$187,300 -$78,400 $74,000 -$157,900 -$49,000 $103,400

IRR -4% -1% 5% -3% 0% 6%

Phase 1 & 2

Project Cost $1,218,000 $1,218,000 $1,218,000 $1,218,000 $1,218,000 $1,218,000

Grant 0% 25% 60% 0% 25% 60%

Grant funding $0 $304,500 $730,800 $0 $304,500 $730,800

Capital Cost $1,218,000 $913,500 $487,200 $1,218,000 $913,500 $487,200

Annual Revenue $47,000 $47,000 $47,000 $51,000 $51,000 $51,000


NPV -$383,400 -$214,600 $21,900 -$348,500 -$179,600 $56,800

IRR -2% 0% 7% -2% 1% 8%

Cost + 10% = $26.95/GJ Cost + 15% = 28.18

Fuel Costs $100/BDT


23 | P a g e


Phase 1

Project Cost $538,000 $538,000 $538,000 $538,000 $538,000 $538,000

Grant 0% 25% 60% 0% 25% 60%

Grant funding $0 $134,500 $322,800 $0 $134,500 $322,800

Capital Cost $538,000 $403,500 $215,200 $538,000 $403,500 $215,200

Annual Revenue $21,000 $21,000 $21,000 $22,000 $22,000 $22,000


NPV -$276,300 -$141,800 $46,500 -$263,800 -$129,300 $59,000

IRR -2% 0% 7% -2% 1% 8%

Phase 2

Project Cost $782,000 $782,000 $782,000 $782,000 $782,000 $782,000

Grant 0% 25% 60% 0% 25% 60%

Grant funding $0 $195,500 $469,200 $0 $195,500 $469,200

Capital Cost $782,000 $586,500 $312,800 $782,000 $586,500 $312,800

Annual Revenue $29,000 $29,000 $29,000 $32,000 $32,000 $32,000


NPV -$135,600 -$26,800 $125,600 -$115,500 -$6,700 $145,700

IRR -3% 0% 7% -2% 1% 8%

Phase 1 & 2

Project Cost $1,218,000 $1,218,000 $1,218,000 $1,218,000 $1,218,000 $1,218,000

Grant 0% 25% 60% 0% 25% 60%

Grant funding $0 $304,500 $730,800 $0 $304,500 $730,800

Capital Cost $1,218,000 $913,500 $487,200 $1,218,000 $913,500 $487,200

Annual Revenue $56,000 $56,000 $56,000 $60,000 $60,000 $60,000


NPV -$333,000 -$164,200 $72,300 -$301,000 -$132,100 $104,300

IRR -1% 2% 10% 0% 3% 11%

Cost + 10% = $26.95/GJ Cost + 15% = 28.18

Fuel Costs $60/BDT


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Phase 1

Project Cost $538,000 $538,000 $538,000 $538,000 $538,000 $538,000

Grant 0% 25% 60% 0% 25% 60%

Grant funding $0 $134,500 $322,800 $0 $134,500 $322,800

Capital Cost $538,000 $403,500 $215,200 $538,000 $403,500 $215,200

Annual Revenue $23,000 $23,000 $23,000 $25,000 $25,000 $25,000


NPV -$251,400 -$116,900 $71,400 -$226,400 -$91,900 $96,400

IRR -1% 1% 9% -1% 2% 10%

Phase 2

Project Cost $782,000 $782,000 $782,000 $782,000 $782,000 $782,000

Grant 0% 25% 60% 0% 25% 60%

Grant funding $0 $195,500 $469,200 $0 $195,500 $469,200

Capital Cost $782,000 $586,500 $312,800 $782,000 $586,500 $312,800

Annual Revenue $32,000 $32,000 $32,000 $35,000 $35,000 $35,000


NPV -$106,200 $2,600 $155,000 -$76,800 $32,000 $184,400

IRR -2% 1% 8% -1% 2% 9%

Phase 1 & 2

Project Cost $1,218,000 $1,218,000 $1,218,000 $1,218,000 $1,218,000 $1,218,000

Grant 0% 25% 60% 0% 25% 60%

Grant funding $0 $304,500 $730,800 $0 $304,500 $730,800

Capital Cost $1,218,000 $913,500 $487,200 $1,218,000 $913,500 $487,200

Annual Revenue $62,000 $62,000 $62,000 $65,000 $65,000 $65,000


NPV -$298,100 -$129,200 $107,200 -$263,200 -$94,300 $142,100

IRR 0% 3% 11% 1% 4% 12%

Cost + 10% = $26.95/GJ Cost + 15% = 28.18

Fuel Costs $30/BDT

This analysis was based on locating the EC for all phases at the youth centre site. The construction of

phase 2 with an EC located near to the Arena would most likely improve the financial viability of phase

2, only because of the reduced piping network. The down side is that any further development such as

connecting phase 1 or phase 3 would most likely be negatively impacted.

Pellets

The financial analysis for pellets is shown in Table 12. It is worth noting that pellets are only viable with

significant grants (60% plus) and would generate very little if any revenue.


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Table 12 Financial Analysis based on Pellets

Phase 1

Project Cost $517,000 $517,000 $517,000 $517,000 $517,000 $517,000

Grant 0% 25% 60% 0% 25% 60%

Grant funding $0 $129,250 $310,200 $0 $129,250 $310,200

Capital Cost $517,000 $387,750 $206,800 $517,000 $387,750 $206,800

Annual Revenue $11,000 $11,000 $11,000 $13,000 $13,000 $13,000


NPV -$379,900 -$250,700 -$69,700 -$355,000 -$225,700 -$44,800

IRR -7% -5% 1% -6% -4% 2%

Phase 2

Project Cost $761,000 $761,000 $761,000 $761,000 $761,000 $761,000

Grant 0% 25% 60% 0% 25% 60%

Grant funding $0 $190,250 $456,600 $0 $190,250 $456,600

Capital Cost $761,000 $570,750 $304,400 $761,000 $570,750 $304,400

Annual Revenue $19,000 $19,000 $19,000 $21,000 $21,000 $21,000


NPV -$253,000 -$147,100 $1,200 -$227,200 -$121,300 $27,100

IRR -6% -4% 2% -5% -3% 3%

Phase 1 & 2

Project Cost $1,163,000 $1,163,000 $1,163,000 $1,163,000 $1,163,000 $1,163,000

Grant 0% 25% 60% 0% 25% 60%

Grant funding $0 $290,750 $697,800 $0 $290,750 $697,800

Capital Cost $1,163,000 $872,250 $465,200 $1,163,000 $872,250 $465,200

Annual Revenue $37,000 $37,000 $37,000 $41,000 $41,000 $41,000


NPV -$440,900 -$276,500 -$46,500 -$415,700 -$251,300 -$21,300

IRR -4% -2% 5% -3% -1% 6%

Cost + 10% = $26.95/GJ Cost + 15% = 28.18

Pellets at $170/tonne delivered

Potential Business Models

The following chart summarizes the general strengths and weaknesses of private ownership, public

ownership and a partnership business model. In this discussion private ownership is either a for- profit

company or a not-for-profit entity (such as Nakusp and Area Youth Society). Public ownership would be

the Village of Nakusp.

Table 13 Strengths and Weaknesses of Different Ownership Structures

Model Strengths Weakness

Private Ownership carries the financial investment and risk

typically bring expertise (project management,

require higher rates of return therefore higher charges to customers

cannot access as low cost


26 | P a g e

operational skills, technical knowledge)*

capital as public

typically unable to access any grants

loss of control for public sector sponsors

Public Ownership close alignment with municipal, social and environmental policy

lower cost of financing and ability to access grants

greater customer confidence and willingness to sign long term contracts

any potential revenue can be used in the delivery of other services

relies on financial strength and credit availability of municipality

risk is carried by municipality

Partnership Model * potential alignment with municipal social and environmental policy

* greater flexibility than private or public approaches

* able to access lower cost municipal financing or grants

* some risk still remains with public sector

* potential complex relationship between partners

* This is typical of larger systems owned by utilities with experience in owning and operating DH. This

is most likely not the case in Nakusp

Within the community of Nakusp there has been much discussion about potential approaches to

ownership of any district heating system. The fundamental questions are whether the system should be

revenue neutral or generate revenue, as well as what are the desired outcomes. If the system is

operated to be revenue neutral then public ownership is the best choice. The system would operate as

any other utility (water, sewer, etc.) within the community either directly by the public entity, most

likely the Village of Nakusp, or as a wholly-owned subsidiary. This would require the Village of Nakusp to

develop additional capacity (see Operating and Maintenance Cost section).

The other end of the spectrum would see the system looking to generate revenue. Ownership of the

system in this case could be public, private or a partnership of both. The question then becomes what is

the optimum model. Based on the financial analysis a private-for-profit venture is unlikely because the

capital costs versus the potential return is not large enough. Most private ventures would be unlikely to

secure grants, etc. to make the project viable. The exception would be if the owner would be able to

significantly reduce the capital required by leveraging their existing equipment, skills, etc. It is also

possible that the Village of Nakusp could operate the system as a for-profit-venture to generate revenue

to support other activities. This would be similar to Nelson Hydro. It is assumed that the Village would

be in a position to access grant funding to improve the viability of the system


27 | P a g e

An alternative would be a partnership between public and private entities. The goal of the partnership

could be to generate revenue only or meet other goals (economic development, reduced energy cost,

GHG reduction). The amount of revenue generated would depend on the type of partnership and their

needs. A public partner would allow for access to various grants to reduce capital costs. The private

partner(s) could be a for-profit or not-for-profit group; this will also govern how any returns are

dispersed.

For many communities the decision on ownership is one of the most difficult because of the number of

uncertainties.

Based on the financial analysis, it is the author’s opinion that the best alternatives are as follows:

1) A system owned and controlled by the Village of Nakusp. The system would be either revenue-

neutral or revenue-generating. The operation of a utility of this size is something with which the

Village is familiar. Local governments are exempt from BC Utilities Commission, thus simplifying

the business, and municipalities also have the ability to access grants and cheaper capital.

2) The system is owned in partnership between the Village of Nakusp and private partners. These

partners could be not-for-profit or for-profit entities (either companies or individuals). The

entity would also be exempt from BCUC and have access to grants and potentially cheaper

capital. It is assumed that the system would be revenue-generating but at a lower return than

would be required from for-profit private investors.

This business case is based on the Village of Nakusp developing a district heating system that would

benefit a variety of clients that would connect. The Village could choose to do Phase 2 only, with only

buildings controlled by the Municipality connected to the heating system, and with limited plans to

connect additional buildings. This would reduce the capital cost of Phase 2, resulting in lower costs for

the Village.

Conclusions

1) There exists a financial case for the Village of Nakusp to look at developing a biomass-fueled

district heating system that would result in energy savings for clients who are connected to the

system. The savings would range from 10-50% depending on their current energy costs.

2) The capital cost for both phase 1&2 is just over $1,200,000 and a minimum of 25% grant or

equity would be required, assuming a biomass cost of $60/BDT.

3) While it is difficult to predict the financial impact in the long term, it is expected that by the

completion of Phase 1&2 the system should generate about $22,000/year in revenue after

expenses and replacements.

4) The completion of Phase 2 as a stand-alone system has the strongest economic case. The

completion of Phase 1&2, as well as phase 3, represent strong opportunities for the future.


28 | P a g e

5) The system would consume about 185 BDT of biomass, resulting in approximately one gravel

truck load (or similar) every 1.5 to 2 weeks.

Recommendations If the community of Nakusp is interested in proceeding we have the following recommendations.

1) Determine which business model is of interest and begin to develop those partnerships,

including a memorandum of understanding for the potential ownership partners to sign. This

may require additional consultation with experts in the development of utilities.

2) Continue discussions with the school district, the Village of Nakusp and other potential clients of

the DH system, with the goal of signing preliminary heat sales contracts (subject to final cost

based on engineering design).

3) Develop a timeline or plan for the project, based on which phases are to be completed and

when.

4) Develop funding for the project either to be used initially to finalise engineering and design, or

funding to complete the entire project.

5) Based on this business case, begin discussions with potential fuel suppliers (Box Lake Lumber,

PIPCO, Community Forest) to formalise fuel supply costs and logistics.

6) It is anticipated that this report will include enough data to form an application for funding from

a number of sources including Federation of Canadian Municipalities, Provincial Government,

Columbia Basin Trust and others.

WW2RH is interested in continuing to support Nakusp as they work through the above

recommendations. If desired, WW2RH can assist the Village in further refining the business case, help

identify potential funding sources, and/or assist Village staff with the preparation of a Request for

Proposals, if required.

Disclaimer Assumptions, conclusions and estimates for this report are based on available information and should

be used only for informational purposes. This report is a pre-feasibility study and should not be used for

engineering or design.

Acknowledgements The authors would like to thank Tom Zelenik for his commitment to this project and drive to move it

forward. We would like to thank Linda Tynan and Village of Nakusp staff members for providing access

to information and facilities. We would like to thank Art Olson from School District 10 for providing data

for this report and access to facilities.


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Funding for the Wood Waste 2 Rural Heat Project is provided by the Southern Interior Beetle Action

Coalition (SIBAC), the Columbia Basin Trust, the Government of BC, Cariboo-Chilcotin Beetle Action

Coalition (CCBAC) and the Omineca Beetle Action Coalition (OBAC).

Agenda Item E1

STAFF REPORT: Request for Council Decision DATE: September 8, 2014 SUBJECT: Outstanding Actions on Resolutions TO: Mayor and Council FROM: Linda Tynan, Chief Administrative Officer STAFF RECOMMENDATION(S): That council pass the following resolution:

That the outstanding action on Resolutions report be received for information. BACKGROUND: The outstanding action on resolutions report is intended to be a report which records all council resolutions which require action. It is not a list of all management duties/priorities – this information is included in the monthly CAO report. Some items were included on this list when it was started that were general items or resolutions of the previous council. Any item may be removed from the outstanding task list if a councilor brings it forward and council votes to remove it. __________________ Submitted by: Linda Tynan, BBA, CGA Chief Administrative Officer Attachment: Outstanding action item report

OUTSTANDING ACTIONS ON COUNCIL RESOLUTIONS (originating from council direction)

Agenda Item E1(a)

Origin Item Description Status 1 Statutory Water Service Bylaw Update Water Service bylaw to

incorporate properties outside village who are receiving Village water

High priority

2 Resolution # R334/11

Nakusp Trails Society Prepare report for council re stewardship agreement

Trail Society to attend council as delegation

3 Council direction

Policy P-11 Staff appreciation

Update of policy required.

4 Council direction

Memorial Trees/benches (donations)

Policy update required; CAO working with Parks/Arena and PW to develop proposed policy for council including map of available locations for further benches.

In progress; draft policy written; presentation Postponed due to other priorities.

5 Resolution # R18/11

Nakusp Chicken Bylaw Policy development in progress.

6 Subdivision Bylaw Update required 7 Purchasing policy update Some revisions required to update for

consistency and clarity CFO to begin work as priority

8 Policy Manual Review of existing policies; update as required

CAO reviewing workplan to accommodate task as priority

9 Statutory Bylaws Complete consolidations and review of outdated references

Ongoing – staff will develop schedule for review

10 R81/12 Chamber of Commerce Request to use ESB for Board Meetings 11 R193/12 Staff develop a policy for Policy development – purchase of

Origin Item Description Status purchasing sponsorship in community events rather than granting fee waiver

sponsorship (advertising) in community events.

12 R254/12 Public Showers Chamber of Commerce Chamber to research grant/funding opportunities for coin operated showers at Marina. In progress; dependant on Chamber time constraints.

13 R255/12 Review of portion of OCP/Zoning bylaw relating to R5 zone and adjacent properties.

Second phase - Delayed due to staff capacity. Currently preparing RFP for consultant. Expected to be posted week of Jan 26.

14 R98/13 Launch Club Agreement CAO to prepare an Agreement and present to council regarding the breakwater replacement

Under staff review.

15 R279/13 Cemetery Bylaw Review requirements for headstones 16 R169/14 Unsightly premises 1401-

Hwy 6 Staff to work to an acceptable solution Requires staff follow up.(March)

17 R248/14 Build Canada Project Grant Projects Application deadline Feb 15; in progress. 18 R9/15 Chamber of Commerce Request- Street Banners Referred back to staff for further review and

report back to council. 19 R11/15 Canadian Mountain Holiday

Inc. Hangar Lease Draft Lease prepared.

20 R14/15 Options for Sexual Health- Kinsmen Health Building

Lease to occupy the Kinsmen Health Building

Draft Lease started. In progress.

CAO Report: January 26, 2015 Agenda Item: F1

General:

1. Website Upgrades: The website development continues to require a significant amount of staff involvement and time. This investment is critical to the success of the website. Terry Welsh (Director of Hot Springs Operations) has taken the lead on the Hot Springs website and Clyde Bersky (Director of Finance) has been primarily responsible for working with the developers of the municipal site.

Hot Springs Website: Soft launch, Sunday January 25; presentation at Jan 26 council meeting Municipal Website: Contracted Karen Marshall to assist with development of content; home page being developed. Expected to launch in early spring.

Village staff is very close to choosing an on-line reservation system for the Chalets and campground. This will allow customers to go to the website and book directly. Although there is some set up time required for the system, this will be greatly offset by the time savings in the future.

2. Association of Kootenay Boundary Local Government 2015 (AKBLG 2015) conference Change. Challenge. Collaborate. See report as agenda item for update.

3. Staffing Updates Mr. Warren Leigh has accepted the position of Director of Operations (permanent). Mr. Terry Welsh is continuing in the position of Temporary Director of Hot Springs Operations. Fire Chief Terry Warren is back at work; CAO would like to acknowledge the contribution of

Deputy Chief Reg Gustafson who covered the Chief’s responsibilities during his absence. 4. Village owned buildings and property: Old Firehall: Lease is in place with the Old Firehall Collective Society; Work has started with

rehabilitation of the building; the Society has been working with RDCK to obtain a building permit as the need for it was overlooked by the Society. Engineered drawings are complete and building permit is expected imminently. Requirement for Development Permit from Village was waived because of the nature of the renovation.

Kinsmen’s Health Unit: Staff is working on the draft lease between the Options for Sexual Health Society and the Village.

Centennial Building: There is some dispute between the contractor and the Archives Society over final cost of renovation – CAO will assist in dispute resolution if required.

Farmer’s Market: CAO has recently been advised that the Farmer’s Market has successfully organized their group into a registered non-profit society. This will allow the Village and the Market to enter into a “License to Occupy” agreement for the market which will alleviate concerns about uncertainty regarding location, fees, etc. This item will be presented to council for discussion at a future council meeting.

5. Financial activities: January is always a very busy time for finance. This will be the first year for

our Director of Finance to prepare the annual financial plan and audit therefore greater assistance/ participation is required from all staff members to ensure that it can all be done in a timely manner. Water and sewer rates have been established by council and utility bills will be mailed very soon. The focus at this time is verifying all of the 2014 entries and making adjustments as required in order to have an accurate picture of 2014 operations. The first financial presenation will be made to council on Thursday, January 29th. The external audit is

scheduled for March and therefore, focus must be also made on updating “lead sheets and financial statements” for this.

6. Snow Removal: According to AccuWeather.com the Village of Nakusp received 119.2 cm (46.9

inches) of snow in December and 81.3 cm (32 inches) to date in January, for a total of 200.5 cm (80”). This snow was received during a few storm events in a short time frame. Crews worked to plow, sand, and haul snow. During this time, some complaints were received regarding snow removal in alleyways; however, alleys are currently not rated as priority routes and are plowed as resources and time permits. It should be noted that the Village received numerous phone calls commending our crews for the work they did in very challenging conditions.

Additional complaints were received about missed garbage pick up. This occurred as a result of

snow piles obscuring the location of bags placed out for collection. 7. Airport: A “NOTAMS” was issued for the airport which closed it to all traffic. This was necessary

because Village machinery was not able to clear the snow and a contractor was required. When snowfall is average, snow clearing is continued, however, with such large amounts of snow, such a closure was required. The runway is now open again.

8. Boat Ramp: BC Hydro/Columbia Power Corporation requested an extension to the Permit to Occupy Village property so that the project to extend the ramp could continue this winter/spring. Update to be provided after meeting on Tuesday, Jan 27 with Village.

9. Nakusp Hot Springs Hillclimb: the organizers of this proposed event (September 2015) have requested Village assistance in working with the Ministry of Transportation. A telephone conference call is scheduled for Monday to determine what further documentation is required before the event can be permitted.

10. Grant Applications: Build Canada – in progress; deadline February (PRV Water System) Gas Tax (Strategic Priority Fund) – deadline April. – application for Biomass District Energy funding 11. Land Use / Zoning Inquiries

Subdivision applications a. 211 Broadway Street (Cann)

nearing completion; Preliminary Letter of Approval to be issued. b. Marshall Road (Zobell/Volansky)-access issues to consider c. 16th avenue NW (Chernoff)-new application in waterfront R5 zone

Land Use Planning general inquiries Several general inquiries regarding zoning, allowable uses, etc. Plan reviews (for building permits) – four completed over past month.

12. Hot Springs Communication System: a new satellite communication system has been installed for telephone communication; to date the reliability has been very high. We are in the process of making arrangements to port existing Telus phone numbers to the new system. 13. Emerging Issues

Village staff was contacted by a resident residing on Alexander Road (out of Village boundaries).

The property owners insurance company had charged him a greater premium for his household insurance this year because the insurance company confirmed with the Village that there are not required “fire flows” to ensure fire hydrant protection. It was explained to the property owner that there is not municipal “obligation” to provide for fire hydrants – our mandate is to provide safe drinking water. An upgrade to the Alexander Road water system is not on the capital plan for 2015. The resident suggested that perhaps other residents on Alexander Road were not aware that the hydrants were not capable of effectively providing fire protection. I explained to the resident that the Village would be completing a long term financing strategy and maintenance/development in summer 2015 and that would be when such capital projects would be contemplated. I encouraged the property owner to continue discussions with the Village.

14. Capital Projects: Installation of the 200,000 Gallon Reservoir Backup Generator The pad is in place, awaiting delivery of the generator mid-December. Installation will be

completed through the coordinated efforts of the Village of Nakusp, Frontier Power and WSA Engineering.

Water Treatment Plant (WTP) and Waste Water Treatment Plant (STP) Both plants are continuing to experience operational issues and Village staff are working with the

project consultants and the equipment suppliers to resolve issues. 15. Review of 2014 Operations An overview of 2014 operations for all departments (including hot springs) will be presented to council at the Financial plan workshop on Thursday, January 29, 2015.

AdminAsst

Typewritten Text

Agenda Item F1(a)

AGENDA ITEM G1 & G2

STAFF REPORT – Request for Council Decision DATE: January 21, 2015 SUBJECT: 2015 Water and Sewer Bylaws TO: Mayor and Council FROM: Clyde Bersky, Director of Finance STAFF RECOMMENDATIONS: That council pass the following resolutions:

1. THAT the “Water Rates and Regulations (2015) Amendment Bylaw No. 463-20, 2015” be reconsidered and finally adopted.

2. THAT the “Sewer Rates (2015) Amendment Bylaw No. 644-3, 2015” be reconsidered

and finally adopted. PURPOSE: At the January 12, 2015 special meeting Council was presented with a staff report titled “2015 Water and Sewer Rates and Regulation Bylaw” and passed the first three readings of each of the above bylaws. Final consideration and adoption are required to pass these bylaws. ALTERNATIVES/OPTIONS:

1. Adopt the bylaws as presented. 2. Amend the proposed bylaw(s) and give three readings. 3. Refer back to staff for further review and report.

CONCLUSIONS/SUMMARY: Having completed the first three readings of the bylaws, adoption of the bylaws as presented is recommended.

_______________________________ Submitted by: Reviewed by: Clyde Bersky, Director of Finance Linda Tynan, CAO

Agenda Item G1(a)

VILLAGE OF NAKUSP

BYLAW NO. 463-20, 2015

A BYLAW TO AMEND VILLAGE OF NAKUSP WATER RATES BYLAW NO. 463, 1996

WHEREAS Council has the authority under Section 194 of the Community Charter to impose fees in respect of a service to the Municipality, base the fees on factors specified in the bylaw, and establish the terms and conditions of payment, AND WHEREAS Council for the Village of Nakusp has approved Bylaw No.463, Water Rates and Regulations Bylaw, which it now deems advisable to amend; AND WHEREAS the Village of Nakusp, under the authority of Section 11(3) of the Community Charter can apply the requirements of this bylaw to users of the Village water system that are outside of the Village boundary, NOW THEREFORE the Municipal Council for the Village of Nakusp, duly assembled, hereby enacts as follows: 1. This Bylaw may be cited for all purposes as “Water Rates and Regulations” (2015) Amendment

Bylaw No. 463-20, 2015”.

2. That Bylaw 463, 1996 is hereby amended as follows:

(a) That Schedule “A” be replaced with the attached Schedule “A” labeled as being a part of Bylaw 463-20, 2015 which amends the Annual Rates for 2015.

3. That this Bylaw shall take effect on January 1, 2015. READ A FIRST TIME THIS 12 day of January, 2015 READ A SECOND TIME THIS 12 day of January, 2015 READ A THIRD TIME THIS 12 day of January, 2015 RECONSIDERED AND FINALLY ADOPTED THIS ____ day of ____, 2015. MAYOR CORPORATE OFFICER

ANNUAL WATER RATES

SCHEDULE "A" BYLAW 463,1996

2015 Unmetered Water Rates

Category Category Name Annual Rate W01 Single family dwelling $352W02 Apartments – per unit 352W03 Retail and other businesses 375W04 Hotel/motel Room - manager residence 375W05 Restaurant and Cafe 603W08 Large Grocer 1,260W09 Church or church hall 312

W10 Public hall or place of amusement with two separate washroom facilities 504

W11 Licenced Lounge 1,044W12 Car Wash - per wash unit 314W13 Water Bottling Plant- per cubic meter 14W14 Hospital, intermediate care facility - per bed 303W15 Fire hall 226W17 Sports Complex 2,521W18 Concrete batch plant 1,035W19 Cemetery 141W20 Mobile home park - each space 275W21 Drive-In Restaurant (with no indoor seating) 452W24 Laundromat - per washer 245W25 Beach and park washrooms - per building 106W26 Beach and park sprinkling 842W30 Campground - per site 50W35 Swimming pool 261

W40 Farm with livestock (horse, cow, sheep, swine) with one residence 704

W41 Garage, service station or body shop 451W52 Apartments – per unit 245W84 Hotel/motel Room - per room 174W99 Vacant lot with service available 90WES Nakusp Elementary School 4,546WSS Nakusp Secondary School 6,974

2015 Basic Connection Fee

Single Family Dwelling – charge per lot Greater of Actual cost or $1,200

Each unit of a new or multi-family project Actual cost

2015 Other Services Temporary water on for construction (max 1 year) $340 + taxTemporary water shut off 40 + taxWater turn on 40 + taxLocation of service 65 + tax

2015 Annual metered Water Rates Category Min. Monthly Rates

¾ inch service $25.001 inch service $50.001 ½ inch service $100.002 inch service $165.00>2 inch service TBD upon activationWater allowance 20,000 litres / month Rate for service over monthly allowance (for each 1,000 litres or fraction thereof) $2.80Testing water meter reported to be malfunctioning.; no charge if defective. For meters found not be defective the testing fee shall be: $55 + taxWater meters may be read and billed quarterly or for a longer period and prorated accordingly

Amendment Bylaw 463-20, 2015

Agenda Item G2(a)

VILLAGE OF NAKUSP

BYLAW NO. 644-3, 2015

A BYLAW TO AMEND VILLAGE OF NAKUSP SEWER RATES BYLAW NO. 644, 2013

WHEREAS Council has the authority under Section 194 of the Community Charter to impose fees in respect of a service to the Municipality, base the fees on factors specified in the bylaw, and establish the terms and conditions of payment, AND WHEREAS Council for the Village of Nakusp has approved Bylaw No. 644, Sewer Rates which it now deems advisable to amend; AND WHEREAS the Village of Nakusp, under the authority of Section 11(3) of the Community Charter can apply the requirements of this bylaw to users of the Village water system that are outside of the Village boundary, NOW THEREFORE the Municipal Council for the Village of Nakusp, duly assembled, hereby enacts as follows: 1. This Bylaw may be cited for all purposes as “Sewer Rates” (2015) Amendment Bylaw No. 644-3,

2015”.

2. That Bylaw 644, 2013 is hereby amended as follows:

(a) That Schedule “A” be replaced with the attached Schedule “A” labeled as being a part of Bylaw 644-3, 2015 which amends the Annual Sewer Rates for 2015.

3. That this Bylaw shall take effect on January 1, 2015. READ A FIRST TIME THIS 12 day of January, 2015 READ A SECOND TIME THIS 12 day of January, 2015 READ A THIRD TIME THIS 12 day of January, 2015 RECONSIDERED AND FINALLY ADOPTED THIS ____ DAY OF ______, 2015. MAYOR CORPORATE OFFICER

ANNUAL SEWER RATES SCHEDULE "A"

BYLAW 644, 2013

2015 Annual Sewer Rates Inside Specified

Area No. 1 (Brouse/Glenbank)

Category Category Name Annual Rate Annual Rate

S01 Single family dwelling $339 $316 S02 Apartments – per unit 277 257 S03 Retail and other businesses 398 373 S05 Restaurant and Cafe 836 779 S06 Two family residence 560 521 S08 Large Grocer 925 875 S10 Church, Church Hall and Public Hall 339 320 S11 Licenced Lounge 850 834 S12 Car Wash - per wash unit 298 276 S13 School per class room 339 316 S14 Hospital, intermediate care facility - per bed 339 316 S17 Sports Complex 2,000 1,930 S20 Mobile home park - each space 251 235 S21 Drive-In Restaurant (with no indoor seating) 627 585 S24 Laundromat - per washer 210 188 S30 Campground - per site 40 40 S41 Garage, service station or body shop 504 471 S70 Bachelor Dwelling - per unit 184 176 S74 Government Building 339 316 S84 Hotel/motel Room - per room 142 135 S99 Vacant lot with service available 79 S99-1 Nakusp Elementry School 79

2015 Basic Connection Fee

Single Family Dwelling – charge per lot Greater of Actual cost or $1,200

Greater of Actual cost or $1,200

Each unit of a new or multi-family project Actual cost Actual cost

Amendment Bylaw 644-3, 2015

AGENDA ITEM H1

STAFF REPORT – Request for Council Decision DATE: January 21, 2015 SUBJECT: Beaton Arm Crossing Association TO: Mayor and Council FROM: Linda Tynan, Chief Administrative Officer

STAFF RECOMMENDATIONS:

THAT Council discuss the letter received from Beaton Arm Crossing Association and decide on course of action.

PURPOSE: To review and discuss the request from the Beaton Arm Crossing Association (request attached). BACKGROUND:

The Beaton Arm Crossing Association was formed to liaison with all levels of government in order to develop and implement solutions to provide a fixed link crossing of the Upper Arrow Lake replacing the Galena‐Shelter Bay ferry. Although recent discussions between council and the Ministry of Transportation and Highways has focused on the issues surrounding the new ferry (such as continuing availability of a backup ferry) and encouragement to continue awarding ship building contracts for other ferries in Nakusp, council has also discussed the importance of a fixed link crossing with the Ministry. The most recent meeting took place at the 2014 UBCM where council met with the Ministry of Transportation and emphasized the desire for a fixed link crossing in addition to the other issues discussed. ATTACHMENTS: 1. Beaton Arm Association‐letter of request

Prepared by: Linda Tynan, CAO

From: ernie_rcTo: [email protected]: Earl & Sandi Frerichs; [email protected]: BACADate: January 16, 2015 1:04:09 PM

Dear Council,The Beaton Arm Crossing Association is still very active in pursuing the fixed link at the Beaton Arm. Allthe studies, reports and discussions lead to the fact that without the fixed link, Nakusp and area will notsee economic growth over 1% for years to come. We request that council consider writing a letter toTodd Stone (Minister of Transportation and Infrastructure) expressing the importance of this link to theTrans Canada Highway. His address is "[email protected]" and if you could c/c me acopy of your letter would be appreciated. If you have any questions or concerns, please let us know.Ernie CalanciaSec/Tres BACA

mailto:[email protected]




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AGENDA ITEM H2

STAFF REPORT – Request for Council Decision DATE: January 21, 2015 SUBJECT: 2015 AKBLG Conference Planning update TO: Mayor and Council FROM: Linda Tynan, Chief Administrative Officer STAFF RECOMMENDATIONS: THAT the 2015 AKBLG Conference Planning update be received for information. BACKGROUND: Planning for AKBLG 2015 in Nakusp is fully underway. The local planning committee includes: Veronica Sargeant (Event Coordinator) Linda Tynan Mayor Hamling Ulli Mueller Anna Marie Hogg (staff support) Linda McInnes (staff support) Current activity:

• Finalization of sponsors • Development of webpage (included on AKBLG site) • Development of registration form (through CivicInfo) • Continued work on accommodation issues • Program content under development • Entertainment program and Partner program in development • Venue logistics (arena/auditorium/ESB) including Audio visual, transportation, catering, furnishing

(tables/chairs, etc) in progress • Development of Tours • Beginning to campaign for Volunteers

It must not be underestimated the magnitude of time that this event requires of Village staff and coordinator. This is a large event and is very specific to local government. It is expected that the conference will benefit the local businesses and events are being planned to ensure that delegates have the opportunity to explore our area and businesses. It is a great opportunity to showcase our community. Prepared by: Linda Tynan, CAO

AGENDA ITEM H3

STAFF REPORT – Request for Council Decision DATE: January 21, 2015 SUBJECT: Hot Springs Website TO: Mayor and Council FROM: Linda Tynan, Chief Administrative Officer STAFF RECOMMENDATIONS: That council pass the following resolution: THAT the report and update on the Hot Springs Website launch be received for information. PURPOSE: To update Council on the new Hot Springs Website. BACKGROUND: Staff and Management attended a training session on January 22, 2015 with website developer ( SpaceRace) staff to learn the how to navigate and update the new Hot Springs Website. Village Staff and Space Race are planning a soft launch of the new website the evening of Sunday, January 25, 2015. CAO Linda Tynan and Director of Hot Springs Operations, Terry Welsh will make a presentation of the new hot springs website to council. ATTACHMENTS: Prepared by: Linda Tynan, CAO

AGENDA ITEM H4

STAFF REPORT – Request for Council Decision DATE: January 21, 2015 SUBJECT: Arrow Lakes Search and Rescue‐ New Command Vehicle TO: Mayor and Council FROM: Linda Tynan, Chief Administrative Officer


THAT council pass the following resolution:

“That the Village agree to the January 16, 2015 request from Arrow Lakes Search and Rescue Association (ALSAR) to purchase a command vehicle on the behalf of the Association subject to the finalization of a formal agreement which specifies conditions to the satisfaction of Village staff including the guarantee that the vehicle will be purchased from the village by ALSAR within 30 days of initial purchase and that the ALSR Association works with Village staff to ensure compliance to the Village purchasing policy and any legislative obligations; and further, that the CAO is given authority to negotiate the agreement with the ALSAR Association.”

PURPOSE: To review the request from the Arrow Lakes Search and Rescue for the purchase of their new Command vehicle. BACKGROUND:

Arrow Lakes Search and Rescue (ALSAR) are in the process of purchasing a new Command vehicle. Through requesting price quotes it has been brought to their attention that a price benefit could be attained should the purchase of this vehicle be completed by a business who maintains a fleet of vehicles. Arrow Lakes Search and Rescue would like Mayor and Council consider signing a contract to purchase the new Command Vehicle and then reselling it to the Arrow Lakes Search and Rescue as per the contract terms. ALSAR will raise all the necessary monies required to purchase this vehicle as well do all the necessary arrangements through to the ordering of the vehicle in conjunction with the dealer to the contract point. At this time ALSAR would have the contract and transaction completed solely under the name of the Village of Nakusp, allowing the fleet pricing benefit to be secured and benefited from. Policy F1‐ Purchasing Policy states that Purchases in excess of $15,000 require formal tendering or proposal call except in situations where delay would jeopardize continuous delivery of the Village’s essential services and thereby be injurious to the public or where the goods and services are unique to one supplier or where supply or4 expertise is very limited. Council can also reserve the right, by resolution, to award a contract contrary to this policy‐ on the written advice of its consultant or senior staff where it is deemed to be in the best interest of

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the Village. When purchasing is done, for these exceptions the circumstances shall be noted in the Accounts Payable file. FINANCIAL IMPLICATIONS: Staff time ATTACHMENTS: 1. ALSR‐ request 2. Policy F1‐ Purchasing Policy


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AGENDA ITEM H5

STAFF REPORT – Request for Council Decision DATE: January 22, 2015 SUBJECT: Call for Resolutions AKBLG TO: Mayor and Council FROM: Linda Tynan, Chief Administrative Officer STAFF RECOMMENDATIONS: That council discuss and determine if they would like to send Resolutions to the Association of Kootenay & Boundaries Local Governments Annual General Meeting. PURPOSE: To review request from AKBLG executive for submission of resolutions for AKBLG. BACKGROUND: The Association of Kootenay and Boundary Local Governments (AKBLG) is the local government association that represents the municipalities and electoral areas of the south-eastern portion of the province of British Columbia. The area includes the Regional Districts of Kootenay Boundary (RDKB), Central Kootenay (RDCK), East Kootenay (RDEK) and the Town of Golden and the Village of Valemount. The purpose of the association is to identify and illuminate issues that impact on the economy, environment, and the social well being of people living in South Eastern BC. The membership is encouraged to forward their concerns to the association. Focusing on issues from a regional, rather than a local perspective, the Executive works through various channels to effect long-term solutions. Committees are struck to address the immediate concerns of the membership for the development of an action plan The Executive board is comprised of 9 local government leaders elected from within the membership. A president, vice-president and six directors at large are elected bi-annually. The past-president also sits on this Executive Committee. One staff person assists the AKBLG Executive. The AKBLG conducts research and circulates information on identified concerns. Workshops and information sessions are developed for the membership when required. Resolutions are formulated and presented to the UBCM for further discussion and endorsement. Issues are taken directly to senior levels of government. This is the first formal call for resolutions for the 2015 of the Association of Kootenay & Boundaries Local Governments Annual General Meeting. The Association has announced the first call for resolutions for the Annual General Meeting which is being held April 22, 23 and 24, 2015 in Nakusp. Resolutions are to be received at the AKBLG office no later that Monday, February 23, 2015. Local Governments may only submit resolution if there is an issue of concern which cannot be resolved at the local government level. ATTACHMENTS: 1. AKBLG Notice of Annual General Meeting Prepared by: Linda Tynan, CAO

790 Shakespeare Street, Trail BC V1R 2B4

Cell 250-231-0404 | Email [email protected]

TO: All AKBLG Members FROM: Arlene Parkinson, Secretary/Treasurer DATE: November 21, 2014 RE: NOTICE OF ANNUAL GENERAL MEETING and FIRST CALL FOR RESOLUTIONS 2015 The 2015 Annual General Meeting (AGM) of the Association of Kootenay & Boundary Local Governments will be held April 22, 23 and 24, 2015 and will be hosted by the Village of Nakusp. Pursuant to Section 10 of your Constitution, this is the FIRST FORMAL CALL FOR RESOLUTIONS for the Annual General Meeting. If there is an issue of concern to your Local Government, which cannot be resolved at the local level, please submit it to the Association in the form of a Resolution. We will be circulating the resolution package for perusal by delegates prior to the convention. Please make note of the deadline date. All resolutions must be received at this office no later than Monday, February 23, 2015. Resolutions received after this date will be held over until the next Annual General Meeting. The Executive will receive Special Resolutions no later than 10:00 a.m., Thursday, April 23, 2015, at the AGM provided that there are 100 copies of each resolution. A Special Resolution requires a two thirds vote in support of consideration prior to being introduced onto the floor of the AGM. Background material and a brief statement of any previous action taken by the member should support each draft Resolution. Each Resolution may be submitted electronically to [email protected] and should be on the letterhead of the Local Government submitting it with a short heading to designate the subject of the Resolution. The Resolution may not contain more than two "Whereas" clauses. Please do not hesitate to contact me at the above email address if you have any questions or concerns.


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790 Shakespeare Street, Trail BC V1R 2B4

Cell 250-231-0404 | Email [email protected]

I have included below the updated Constitution excerpts that were passed at the 2010 AKBLG Annual General Meeting. Thank you Arlene Parkinson Secretary Treasurer

10.4 Ordinary Resolutions (1) Each resolution shall be prepared on a separate sheet of 8 1/2” by 11”

paper under the name of the sponsoring Member and shall bear a short descriptive title;

(2) Each resolution shall be endorsed by the sponsoring Member. (3) All resolutions of the Association shall be deemed to be of a local

(regional) nature unless specifically indicated by the sponsor that the resolution is to be handled at the Provincial Government level.

10.5 Late and Special Resolutions (April 2010) (i) Resolutions that are not received in accordance with the deadline outlined in

10.7 below shall be categorized as follows; (a) Late Resolution (b) Special Resolution (ii) A Late Resolution shall be held over until the next Annual Meeting (iii) A Special Resolution shall be determined by the Resolutions Committee, as

being any resolution pertaining to a new issue that has arisen between the deadline outlined in 10.7 below and the Annual General Meeting.

(iv) A Special Resolution requires a two thirds vote in support of consideration prior to being introduced onto the floor of the Annual General Meeting, and may only be introduced after all Ordinary Resolutions have been considered or if two thirds of the Delegates present determine to hear the resolution immediately.

10.6 The Executive will cause the resolutions to be printed and circulated to Members by way of the delegate packages.

10.7 All resolutions, along with supportive, background information, shall be sent to the Secretary-Treasurer sixty (60) days prior to the date of the Annual General Meeting.

AGENDA ITEM H6

STAFF REPORT – Request for Council Decision DATE: January 21, 2015 SUBJECT: Hot Springs Roof – facility and Cedar Chalets TO: Mayor and Council FROM: Linda Tynan, Chief Administrative Officer STAFF RECOMMENDATIONS:

THAT Council authorize staff to proceed with a contract between the Village of Nakusp and DJM Contracting for roofing of Hot Spring facility and the Cedar Chalets.

PURPOSE: To review quote received for the replacement roof at the Hot Springs and Cedar Chalets. See attached report from Director of Hot Springs Operations. BACKGROUND: The roof on the Hot Spring facility and also those on the Cedar Chalets are long overdue for replacement. When the Cedar Chalets were purchased, additional funds were borrowed for the purpose of roof replacement. The Village has issued a Request for Proposals (RFP) on two occasions for this roof replacement project. Neither process resulted in acceptable proposals. As a result of this, the Director of Operations contacted roofing/construction companies directly, met with each of them individually and asked for recommendations and quotations. The results have been closely reviewed (see attached). The cost is higher than expected however not as high as the rfp originally received. Staff believes it is important to negotiate a contract with the successful proponent as soon as possible so that our project is addressed as soon as the snow is clear at the hot springs. Village staff will speak this report at the council meeting and provide greater detail. FINANCIAL IMPLICATIONS: The Village currently has $50,000 set aside in the budget for the facility roof replacement and approximately $40,000 set aside for the Chalet roofs. The proposal presented will require additional funds. Financing will be discussed at the council meeting. ATTACHMENTS: Roof Replacement report – Director of Hot Springs Operations.

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Item H6(a)

Information Report

Date: January 21, 2015 To: Lynda Tynan, CAO Title: Hot Springs & Chalets Roof Replacement Project Originated By: Terry Welsh, Director Hot Springs Operations BACKGROUND: Administration has received a quote from DJM Contracting in the amount of One Hundred & Three Thousand, Six Hundred & Fifty Dollars and Eighty-Three Cents ($103,650.83) plus applicable taxes, for the replacement of the existing roofs at the Hot Springs and the Cedar Chalets. DJM’s quote was judged to be superior to all other quotes received, both in terms of price and completeness of the work. DJM was also the only proponent that supplied an OH&S Program that meets the Village’s responsibilities under WorkSafe BC, the Workers Compensation Act, and the Occupational Health and Safety Regulation. The Director of Operations and the Director of Hot Springs Operations are recommending that an additional fifteen (15) to twenty (20) percent be considered for the project as contingency for unforeseen work. This recommendation is primarily related to the Chalets, due to the deteriorated condition of the roof structures. With a twenty percent contingency, this would result in a project budget of One Hundred & Twenty Four Thousand, Three Hundred & Eighty One Dollars ($124,381.00) plus taxes. Proposal Review: A review of DJM’s quote verified their compliance with the project work as set out. A synopsis of the major work follows:

• A base quote of $85,000 plus tax for the installation of 24” Class C #1 Cedar Shakes and waterproof membrane on the Hot Springs and Chalets.

o 40 Year Product Warranty. o Five year Workmanship Warranty.

• 26 gauge metal roofing to be used on the low slope roofs at the Chalets.

• A base quote of $18,650.83 plus tax for the installation of membrane roofing at the base of the Hot Springs Roof.

o Two product options are provided for consideration, a SBS membrane and an EPDM membrane. In terms of cost, the two options are within $450 of each other. For the purposes of this report, the higher cost of the SBS membrane is being used. A choice of the preferred system will be made upon further review.

• 26 gauge coloured steel flashing. • Removal and disposal of all current roofing materials.

Options:

• An option for 26 gauge metal roofing can be substituted for cedar shakes on the Chalets. There is no difference in the price in terms of material and installation.

o 40 Year Product Warranty. o Five year Workmanship Warranty.

Exclusions:

• Hazardous material assessment or removal. • Power consumption or usage during the project. • Potential latent defects. • The flashing at the Hot Springs facility eave.

Extra Work (Unforeseen): All work deemed to be extra to the contract will be as per the following schedule.

• Carpenter - $65.00 per hour • Apprentice Carpenter - $55.00 per hour • Journeyman Roofer – S50.00 per hour

DJM Contracting is proposing a project start date of March 15th subject to weather conditions. As part of the project contract, the Directors also recommend that a completion date of May 15th be established, so as to mitigate the potential negative impact on revenue streams of the facility.

Agenda Item I1-I6

INFORMATION ITEM (S) REPORT ITEMS SUMMARY:

The following items of correspondence and interest have been received since the last meeting of Council.

1. Columbia Power Corporation – Boat Launch ‐extension of Permit to Construct on Village

Streets. 2. BC Hydro Boat Ramp update January 2015. 3. Burton Volunteer Fire Department‐ Thank You 4. CivicInfo‐ Membership Renewal (2015) 5. Nakusp and District Chamber of Commerce‐ Annual General Meeting January 29, 2015 6. Canadian Union of Postal Workers‐ Request for Support to Save Canada Post

REQUEST FOR PROCLAMATIONS:


Unless items listed are dealt with specifically by Council, staff will respond to request, referrals and issues

where appropriate and as outlined by Village policy and as indicated on each item.

Submitted by

____________________________

Linda Tynan, CAO

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January 19, 2015

Update on the Arrow Lakes Reservoir Boat Launch Improvement Projects BC Hydro is committed to improving summer recreational boat access on Arrow Lakes Reservoir as recommended by the Columbia River Water Use Plan. There are a number of boat launch projects currently underway at various stages of completion. This year, BC Hydro plans to resume construction at Anderson Point, Burton, Nakusp, Edgewood and Fauquier.

Boat Ramp 2015 Work Plan

Anderson Point BC Hydro and Columbia Power are continuing to collaborate on a plan to complete work at this site. Columbia Power will resume construction at Anderson Point in February to complete the ramp as far as water levels will allow. If water levels don’t allow for full completion of this ramp in 2015, work will resume in 2016 for the in‐water portion of the ramp. The site will be closed to public access starting in early February.

The current design of the Anderson Point boat launch’s breakwater has resulted in navigational concerns for one of BC Hydro’s stakeholders. In order to address these concerns, BC Hydro is exploring options to relocate the breakwater for the Anderson Point boat launch. We will be hosting a public meeting on at the Sandman Hotel in Castlegar on Thursday, January 29 from 6:00 p.m. to 8:00 p.m. to discuss this potential change. BC Hydro is committed to continuing to work with stakeholders to find a solution that meets the needs of the community and engineering design limitations due to site conditions.

Burton South Construction work will resume during low water to extend the ramp as far as water levels will permit. If water levels don’t allow for full completion of this ramp in 2015, a safety curb will be installed at the bottom of the ramp, and in 2016 a company specializing in underwater marine construction will be retained to complete the ramp to the final design elevation of 425.5 metres. The site was closed to the public beginning January 19, 2015 so that work can proceed.

Edgewood BC Hydro is continuing to work with local residents to identify a solution for the southern floating log breakwater that addresses site conditions and will meet the needs of the community.

In 2015, Columbia Power will be installing rip rap around the ramp and a transition panel at the toe of the ramp to allow users to drive off the end of the ramp during low water. There will be no access to the boat launch site during this construction work which is expected to begin in early February.

Fauquier Adjustments will be made to the breakwater chains to prevent the pontoons from overlapping near the shore. This work will be completed in February

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2015. BC Hydro will also be installing signs on Highway 6 to direct the public to the boat launch.

McDonald Creek No work is planned at this location for 2015. BC Hydro is reviewing the work completed to date and developing a plan for construction to resume in 2016.

Nakusp BC Hydro and Columbia Power are continuing to collaborate on a plan to complete work at this site. Columbia Power will resume construction at Nakusp in February to complete the ramp as far as water levels will allow. The site will be closed to the public starting in early February. Work will resume in 2016 for the in‐water portion of the ramp using a company specializing in underwater marine construction.

BC Hydro appreciates your continued support as these upgrades are completed. For more information, contact: Mary Anne Coules Stakeholder Engagement Advisor, Lower Columbia Phone: 250‐365‐4565 Email: [email protected] Jennifer Walker‐Larsen Stakeholder Engagement Advisor, Upper Columbia Phone: 250‐814‐6645 Email: jennifer.walker‐[email protected]

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For reference

J. INQUIRIES BY COUNCIL OF ADMINISTRATION K. NOTICE OF MOTION L. QUESTIONS FROM THE PRESS OR PUBLIC M. NOTICE OF IN-CAMERA MEETING R/13 Notice of In Camera Meeting

Moved by Councillor _______________, Seconded by Councillor __________ THAT in the opinion of Council, and in accordance with Section 90 of the Community Charter, the public interest so requires that persons other than Councillors and staff be excluded from the meeting, AND FURTHER, that the meeting be closed on the basis identified in the following subsections: Section 90(1)c. labour relations or other employee relations; d. the security of the property of the municipality;

CARRIED N. ITEMS BROUGHT FORWARD FROM IN-CAMERA O. ADJOURNMENT R/13

Moved by Councillor _________________ THAT the meeting adjourn at _________ PM.

CARRIED

agenda for the regular meeting of council to be held

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