Comment 7 for bug 1828534

The traceback looks like an upstream designate issue with py3 support:

[-] Error starting thread.: TypeError: '<' not supported between instances of 'str' and 'bytes'
Traceback (most recent call last):
  File "/usr/lib/python3/dist-packages/oslo_service/service.py", line 794, in run_service
    service.start()
  File "/usr/lib/python3/dist-packages/designate/producer/service.py", line 72, in start
    self._partitioner.start()
  File "/usr/lib/python3/dist-packages/designate/coordination.py", line 223, in start
    self._my_partitions = self._update_partitions()[1]
  File "/usr/lib/python3/dist-packages/designate/coordination.py", line 200, in _update_partitions
    members = sorted(list(self._get_members(self._group_id)))
TypeError: '<' not supported between instances of 'str' and 'bytes'