Agenda of Nelson Tasman Regional Landfill Business Unit

Nelson Tasman Regional Landfill Business Unit Minutes - 12 June 2020

Minutes of a meeting of the Nelson Tasman Regional Landfill Business Unit

Held in the Nelson City Council Chamber, Level 2A, Civic House, 110 Trafalgar Street, Nelson

On Friday 12 June 2020, commencing at 10.39a.m.

Present: Nelson City Councillor J Edgar (Chairperson), Tasman District Councillors S Bryant and T Walker, and Mr A Stephens

In Attendance: Nelson City Council Group Manager Infrastructure (A Louverdis), Tasman District Council Engineering Services Manager (R Kirby), Nelson City Council General Manager Regional Sewerage and Landfill (N Clarke), and Governance Adviser (E-J Ruthven)

Karakia Timatanga

Andrew Stephens gave a karakia timatanga.

Apologies

Resolved RLBU/2020/006

That the Nelson Tasman Regional Landfill Business Unit

1. Receives and accepts the apologies from Nelson City Councillor Fulton for attendance.

Walker/Bryant Carried

1. Confirmation of Order of Business

There was no change to the order of business.

2. Interests

There were no updates to the Interests Register, and no interests with items on the agenda were declared.

3. Public Forum

There was no public forum.

The meeting was adjourned from 10.41a.m. to 10.52a.m.

4. Confirmation of Minutes

4.1 13 March 2020

Document number M7775, agenda pages 5 - 8 refer.

Resolved RLBU/2020/007

That the Nelson Tasman Regional Landfill Business Unit

1. Confirms the minutes of the meeting of the Nelson Tasman Regional Landfill Business Unit, held on 13 March 2020, as a true and correct record.

Walker/Bryant Carried

4.2 1 May 2020 - Extraordinary Meeting

Document number M9832, agenda pages 9 - 10 refer.

Resolved RLBU/2020/008

That the Nelson Tasman Regional Landfill Business Unit

1. Confirms the minutes of the extraordinary meeting of the Nelson Tasman Regional Landfill Business Unit, held on 1 May 2020, as a true and correct record.

Bryant/Walker Carried

5. Chairperson's Report

Document number R18051, agenda pages 11 - 13 refer.

Councillor Edgar presented the report, and noted the Business Unit’s appreciation for the extra work the landfill operators and officers had undertaken during the Covid-19 lockdown.

Nelson City Council Group Manager Infrastructure, Alec Louverdis, and Tasman District Council Engineering Services Manager, Richard Kirby and Team Leader – Stormwater and Waste Management, David Stephenson, answered questions regarding reporting by officers to each Council on waste minimisation and management matters, noting the need for each Council to be proactive in reporting on its waste minimisation goals.

Resolved RLBU/2020/009

That the Nelson Tasman Regional Landfill Business Unit

1. Receives the report Chairperson's Report (R18051).

Edgar/Bryant Carried

6. General Manager Update

Document number R18045, agenda pages 14 - 20 refer.

Nelson City Council General Manager Regional Sewerage and Landfill, Nathan Clarke, presented the report. He answered questions regarding the replacement of weighbridge cells, improving facilities at the landfill site, contractor input into planning, and the financial effects of the Unique Emission Factor.

There was a further discussion regarding year to year financial risks, and the likely surplus for this financial year, including its application to the 2018/19 financial year loss.

Resolved RLBU/2020/010

That the Nelson Tasman Regional Landfill Business Unit

1. Receives the report General Manager Update (R18045).

Bryant/Stephens Carried

7. Nelson Tasman Regional Landfill Business Unit Disposal Fees Consultation

Document number R18047, agenda pages 21 - 24 refer.

Nelson City Council General Manager Regional Sewerage and Landfill, Nathan Clarke, presented the report. He answered questions regarding the consultation process and the submission received by Nelson City Council in support of the proposal to increase disposal fees.

Resolved RLBU/2020/011

That the Nelson Tasman Regional Landfill Business Unit

1. Receives the report Nelson Tasman Regional Landfill Business Unit Disposal Fees Consultation (R18047); and

2. Confirms that the York Valley landfill disposal fees be increased by 5% (from $163 to $171 including GST) to take effect 1 July 2020.

Walker/Edgar Carried

Karakia Whakamutunga

Andrew Stephens gave a karakia whakamutunga.

There being no further business the meeting ended at 11.37a.m.

Confirmed as a correct record of proceedings:

Chairperson Date

Item 7: Nelson Tasman Regional Landfill Business Unit - 2021/22 Business Plan and 2021 - 2031 Activity Management Plan.

Nelson Tasman Regional Landfill Business Unit

11 September 2020

REPORT R20294

Nelson Tasman Regional Landfill Business Unit - 2021/22 Business Plan and 2021 - 2031 Activity Management Plan.

1. Purpose of Report

1.1 This report provides a summary of the Nelson Tasman Regional Landfill Unit (NTRLBU) Draft Business Plan 2021/22 and the Draft NTRLBU Activity Management Plan 2021 – 2031, and seeks approval of these documents for circulation to Nelson City Council and Tasman District Council for review and feedback.

2. Summary

2.1 The draft NTRLBU Business Plan 2021/2022 is tabled at this board meeting for discussion and approval.

2.1.1 The business plan generally follows the works as outlined for 21/22 in the Draft NTRLBU Activity Management Plan 2021 - 2031.

2.2 The Draft NTRLBU Asset Management Plan 2021-2031(AMP) is tabled for discussion and approval at this meeting.

2.2.1 The AMP has been developed based on NTRLBU workshop feedback.

2.2.2 The AMP has been brought together to the best of NTRLBU staff knowledge. It focusses on reducing operating risks, reducing significant costs, and identifying ways to safeguard effective and economic operations into the future.

2.2.3 The programme of works has been developed to try to reflect the priorities and timing while spreading out the expenditure. Due to the capacity at York Valley Landfill, significant expenditure is planned next financial year so that NTRLBU can capitalise on the significant savings that will accrue from the works.

2.2.4 This will however put significant pressure on staff in order to try to deliver the programme of works.

2.2.5 At present the programme of works is still ambitious and will be very difficult for NTRLBU staff to deliver.

2.2.6 It is proposed that the AMP will be updated to reflect any changes that result from the finalisation of the York Valley Landfill airspace investigation works prior to finalisation in early 2021.

3. Recommendation

That the Nelson Tasman Regional Landfill Business Unit:

1. Receives the report Nelson Tasman Regional Landfill Business Unit - 2021/22 Business Plan and 2021 - 2031 Activity Management Plan. (R2221) and its attachments (A2458268 and A2458269); and

2. Approves the 2021/2022 Draft Nelson Tasman Regional Landfill Business Unit Business Plan (A2458269) for presentation to the Nelson City Council and Tasman District Council with delegation of all minor amendments to the Nelson Tasman Regional Landfill Business Unit Chairperson; and

3. Approves the Draft Nelson Tasman Regional Landfill Business Unit Activity Management Plan 2021-2031 (A2458268) for presentation to the Nelson City Council and Tasman District Council with delegation of all minor amendments to the Nelson Tasman Regional Landfill Business Unit Chairperson.

Recommendation to Nelson City Council and Tasman District Council

That the Nelson City Council and Tasman District Councils

1. Receive the 2021/2022 Draft Nelson Tasman Regional Landfill Business Unit Business Plan (A2458269) for review, and provide feedback to the Nelson Tasman Regional Landfill Business Unit if required; and

2. Receive the Draft Nelson Tasman Regional Landfill Business Unit Activity Management Plan 2021-2031 (A2458268) for review, and provide feedback to the Nelson Tasman Regional Landfill Business Unit if required.

4. Background

4.1 The NTRLBU Terms of Reference (TOR) outlines a number of activities required by the NTRLBU along with specified timing for these activities.

4.2 NTRLBU has focussed on developing the Draft Activity Management Plan (AMP) for the next ten years, and has held a number of workshops to discuss the future goals and targets for NTRLBU.

4.3 The AMP incorporates the long term objective and goals for the NTRLBU as they are understood at present.

4.4 The TOR requires that the AMP is updated every three years, and NTRLBU has focussed on the AMP because this plan has an influence on both the Nelson City Council, and Tasman District Council AMPs, that are currently being updated.

4.5 The TOR also requires that the NTRLBU prepares a Draft Business Plan and that this be presented to the councils by 31 October each year.

4.6 A Draft Business Plan has been drafted to reflect the activities proposed in the first year of the Draft NTRLBU AMP.

5. Discussion

5.1 The AMP includes a significant amount of capital expenditure in the first two years of the ten year period. This capital expenditure is required to implement a number of improvements to the gas management system so that NTRLBU can reduce its carbon emissions, and reduce the cost to the community of those carbon emissions.

5.2 Additional reasons for the high expenditure during the early years of the programme are that any expenditure needs to be depreciated over the remaining life of York Valley Gulley 1. This period is currently estimated at ten years. This introduces significant annual charges for actions implemented late in the ten year period.

5.3 The AMP includes an allowance for the construction of a buttress at the toe of York Valley Gulley 1 to allow further waste to be accepted, and to allow the life to be extended. NTRLBU is unable to confirm at this time whether this is technically feasible, and therefore there is uncertainty regarding actual life of York Valley Gulley 1. At this time for planning purposes it has been assumed that the landfill will cease to operate at the end of the ten year period.

5.4 Based on the assessed life of York Valley Gulley 1, allowances have been made for consent application for a new landfill in the early to middle of the ten year period, with allowance being made for the construction of a new landfill facility toward the end of the period.

5.5 Further work is being undertaken to confirm a number of outstanding uncertainties, but these issues may take some time to resolve.

6. Operational Costs

6.1 The costs to run the NTRLBU will increase significantly over the next four years. These cost increases are largely related to activities outside NTRLBU control, including;

6.1.1 Significant increases to the Waste Minimisation Levy,

6.1.2 The increasing cost of carbon emissions under the NZ Emissions Trading Scheme,

6.1.3 The increasing funding requested by NCC and TDC for the local disposal levy.

6.2 The impact of the cost increases will depend on the activities NTRLBU implements to our landfill to reduce the effect of these significant cost increases.

6.3 NTRLBU has focussed efforts on driving down the cost of the carbon emissions, and this period includes allowances for acquiring the contract with Nelson Marlborough District Health Board for the supply of gas to the hospital boilers, It will increase the level of gas infrastructure at both the York Valley Gulley 1 and Eves Valley sites.

6.4 The focus on reducing the cost of carbon emissions will somewhat offset the increase in the waste minimisation levy costs, but even with these improvements, the cost of waste disposal to NTRLBU facilities will increase significantly over the period.

6.5 NTRLBU has allowed for the diversion of waste from York Valley 1 to an alternative site (currently expected to be Eves Valley Stage 2) that does not accept general wastes. This will reduce the Waste Minimisation Levy that NTRLBU needs to pay, although the effect of these savings is expected to be reasonably low compared to the effect of the ETS changes.

6.6 NTRLBU will continue to support the NCC and TDC joint waste minimisation programmes. However it is expected that the costs for these programmes will continue to increase, which will also result in increased landfill charges.

6.7 Costs are provided in the AMP based on knowledge and best judgement of the NTRLBU staff. The industry is experiencing significant change at present and therefore there is a risk that our projections are not as accurate as desired.

6.8 NTRLBU has used the AMP as the basis to developing the Draft NTRLBU Business Plan 2021/22.

6.9 The Draft NTRLBU Business Plan 2021/22 includes a significant capital expenditure programme.

6.10 Regional Services staff may not have capacity to carry out the amount of work required in the capital budgets for NTRLBU, and additional resources may be required.

7. Conclusion

7.1 The AMP has been prepared to the best of the ability of the NTLBU staff based on feedback from the NTRLBU board, and incorporating the foreseeable changes to the inputs to the NTRLBU business.

7.2 There has been and continues to be significant uncertainty in a number of areas, which may affect the accuracy of the AMP.

7.3 The Draft NTRLBU Business Plan 2021/22 has been prepared based on the AMP.

7.4 The Draft NTRLBU Business Plan 2021/22 therefore includes significant capital expenditure.

7.5 NTRLBU may need to obtain additional resources to deliver the programme of works required by the AMP and Business Plan.

8. Next Steps

8.1 The Draft NTRLBU Activity Management plan 2021-2031 and the Draft NTRLBU Business Plan 2021/22 need to be circulated to Nelson City Council and Tasman District Council for their review and feedback.

8.2 Following receipt of any comments NTRLBU will update the document as required for approval at the 11 December 2020 NTRLBU Board meeting.

Author: Nathan Clarke, General Manager Regional Sewerage and Landfill

Attachments

Attachment 1: A2458269 - NTRLBU Business Plan 2021-2022 Rev 1 ⇩

Attachment 2: A2458268 - NTRLBU AMP 2021 - 2031 Draft 2.4 ⇩

Important considerations for decision making

1. Fit with Purpose of Local Government

The NTRLBU is a joint committee constituted pursuant to the provisions of Schedule 7 to the Local Government Act 2002 and contributes to the four Local Government well-beings of social, economic, environmental and cultural.

2. Consistency with Community Outcomes and Council Policy

The NTRLBU Disposal Fees feed into Council’s 2021-31 LTP and the NTRLBU Activity Management Plan feeds into the NCC and TDC Activity Management Plans.

3. Risk

This report allows the community to comment on the NTRLBU fees and development through NCC community consultation processes. These comments will be considered by the Board. The risk of not approving the fees is that this could delay the NRSBU implementing their Business Plan for 2021/22, could also delay the development of the Activity Management Plan, and could have a consequential effect on NCC and TDC Council Annual Plans and Activity Management Plans

4. Financial impact

The NTRLBU 2021/22 fee reflects an increase in essential renewals expenditure and the commencement of the landfill including storm water upgrades.

5. Degree of significance and level of engagement

The NTRLBU plans are included in the Long-term Plans and Annual Plans of each Council. Consultation is undertaken by both Councils in the preparation and adoption of these plans.

6. Climate Impact

A key feature of the NTRLBU Business Plan and Activity Management Plan are project that work toward mitigation of greenhouse gas emissions. This includes a commitment to measure and reduce greenhouse gas emissions from the facility

7. Inclusion of Māori in the decision making process

No engagement with Māori has been undertaken in preparing this report but iwi have representation on the Board.

· Delegations

Nelson Tasman Regional Landfill Business Unit Joint Committee has the following delegations:

5.6.1 Relevant Areas of responsibility:

• Landfill, including York Valley landfill and Eves Valley landfill.

5.6.2 Delegations:

The NTRLBU may without the need to seek any further authority from the councils:

· Set fees and charges for waste disposal at the regional landfill facilities by 30 June each year; including the power to apply discounted fees and charges for the disposal of waste in bulk; and may determine other circumstances where discounted fees and charges may be applied. For clarity, the fees and charges shall be included in the draft annual Business Plan that is submitted for Council approval each year.

Item 7: Nelson Tasman Regional Landfill Business Unit - 2021/22 Business Plan and 2021 - 2031 Activity Management Plan.: Attachment 2 – A2458268

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Item 8: Nelson Tasman Regional Landfill Business Unit Quarterly Report and 2019/20 Annual Report

Nelson Tasman Regional Landfill Business Unit

11 September 2020

REPORT R20277

Nelson Tasman Regional Landfill Business Unit Quarterly Report and 2019/20 Annual Report

1. Purpose of Report

1.1 This report is a three monthly update by the General Manager (GM) on activities undertaken over the last three months by the Nelson Tasman Regional Landfill Business Unit (NTRLBU) and approval is sought for the Draft Annual Report 2019/20.

2. Summary

2.1 Operations are generally running well, with the exception of stormwater management. It has been a very busy period for the NTRLBU Staff and there have been a number of issues that have needed to be dealt with in addition to the normal operations.

2.2 During this period NTRLBU had a sediment discharge to the York Stream during a rainfall event. Nelson City Council has issued an infringement notice and fine and has indicated that NTRLBU will receive an Abatement Notice relating to the incident.

2.3 NTRLBU has implemented a number of actions to prevent further issues. It is very disappointing that this event has happened. The stormwater management system onsite has been an issue for some time, and NTRLBU has money in this year’s budget to begin its upgrade.

2.4 A number of actions have been implemented to mitigate the issues with contaminated stormwater including:

2.4.1 Installation of numerous silt fences throughout the facility.

2.4.2 Application of gravel to the landfill access road to prevent mud and sediment generation,

2.4.3 Weekly clean of the access road.

2.4.4 Application of hydroseed to cut faces around the site.

2.4.5 Application of stabilisation polymer to the flat surface of the landfill face area to prevent sediment entrainment in stormwater

2.4.6 Installation of a pump to empty the stormwater ponds into the sewer. Stormwater has been pumped to sewer (NTRLBU has stayed within the allowable flowrate for leachate). This allows buffer volume to be generated in the stormwater ponds that can be used during a rain event.

2.5 There has been operational costs of around $100,000 for the actions NTRLBU has implemented to reduce the stormwater issues.

2.6 NTRLBU had a fire on the York Valley site due to lithium batteries, and Downer had a staff member have a medical event while onsite

2.7 The Downer contract manager has changed during the last 3 months and the new contract manager is now on board.

2.8 The Provincial Growth Fund projects are both under way with the road resurfacing having started and the visual screening planting at Eves being underway.

2.9 The new Regional Services Activity Engineer started on 29 June 2020.

2.10 A number of workshops were held to discuss the key items for the development of the NTRLBU Activity Management Plan 2021-2031 (AMP)

3. Recommendation

That the Nelson Tasman Regional Landfill Business Unit

1. Receives the Nelson Tasman Regional Landfill Business Unit Quarterly Report and 2019/20 Annual Report (R20277) and its attachments (A2458270 and A2458271); and

2. Approves that the Eves Valley Gas capture and destruction system development proceed, subject to a carbon credit application being undertaken; and

3. Approves the Nelson Tasman Regional Landfill Business Unit 2019/20 Annual report (A2458270) for presentation to Nelson City Council and Tasman District Council with delegation of all minor amendments to the Nelson Tasman Regional Landfill Business Unit Chairperson.

Recommendation to Nelson City Council and Tasman District Council

That the Nelson City Council and Tasman District Councils

1. Receive the Nelson Tasman Regional Landfill Business Unit 2019/20 Annual report (A2458270).

4. Health and Safety

4.1 Health and Safety at the site is being managed well.

4.2 Over this period there were two notable incidents.

4.3 The first incident was a fire at the landfill caused by a lithium ion battery. This fire was not handled as well as expected due to a new operator driving the excavator at the time. The operator had not been trained on fire management at the landfill.

4.4 Additional fire training measures haven been requested from Downer, including annual dry run fire training. It is hoped that this will to ensure all staff are familiar with the procedures of how to fight a fire when one occurs.

4.5 In addition, the GM proposes to install two water tanks above the final landfill height to allow a pressurised water supply at the landfill for firefighting.

4.6 The GM has also requested quotations for thermal imaging cameras that will allow automated monitoring of the landfill face after hours, and will alarm if a fire starts while staff are not onsite.

4.7 Battery fires are becoming more frequent and occur when the casing of the battery is broken. There has been an occurrence of this happening hours after mechanical activity in the area and therefore additional safety measure are considered necessary.

4.8 The second incident occurred when one of the Downer operations and maintenance staff had a heart attack on the site. The operator alerted other staff and an ambulance was called. The operator is recovering well, and Downer has indicated he will be back at work in a few more weeks.

5. Odour and Litter management

5.1 NTRLBU has had ongoing discussion with one neighbour in regard to litter escaping from NTRLBUs facilities and getting onto her land. Discussion between the landowner and the GM has occurred. The GM suggested that NTRLBU would be keen to acquire the land facing the facilities to mitigate risk to our operations and to mitigate the litter risks. This was refused, but led to further discussions where the landowner offered for NTRLBU to lease the land from her.

5.2 The GM believes this is a pragmatic outcome, and proposes to continue to progress the lease of this land. It is proposed that an independent market rental assessment be undertaken and that NTRLBU offers the market rental for the land.

5.3 It is recommended that NTRLBU plants screening plants on the land so that litter is captured in the trees and cannot migrate further into other properties.

5.4 Minor odour issues were experienced during the period due to the intermediary cap being removed from a section for the landfill. This was resolved quickly, but did briefly result in odour issues.

6. Resource Consents

6.1 Stormwater Discharge-NTRLBU breached the stormwater discharge consent during the period due to sediment discharge to York stream.

6.2 A fine for $750 has been received for this breach.

6.3 The NCC compliance representative investigating the issue has recommended NTRLBU consider a variation to the consent as the current wording will mean that NTRLBU is at risk of frequent issues ( “any conspicuous change in colour or visual clarity”) associated with a change in colour from stormwater discharge.

6.4 Eves Valley Stage 2 Consent – The consent for the remaining year of capacity at Eves Valley Stage 2 and the consent for the closure of Eves Valley Stage two has not been finalised. NTRLBU has engaged Nelmac’s landscape architecture personnel to consult with local neighbours regarding the planting plan for the facility. This is currently underway, and following consultation it is hoped that an acceptable plan can be developed and the consent can be finalised.

6.5 Consent for a flare needs to be added to the Stage 2 consent so that the flare for destructing the landfill gas can be installed when required.

7. ETS management

7.1 As discussed during the NTRLBU workshops significant improvements can be made in regard to carbon emission management. A number of actions are ongoing in this space.

7.2 During this period the GM has investigated landfill gas management issues and has identified a plan for developing landfill gas over time.

7.3 This includes discussion with Pioneer Energy Ltd regarding the purchase of their energy supply contract with NMDHB. The GM is working on a business case for the purchase of this business and hopes to have this to for the December 2020 NTRLBU Board meeting.

7.4 It also includes the identification of an option that may allow NTRLBU to obtain an economic return which would justify it installing a flare to destroy methane emissions from the Eves Valley Landfill.

7.5 This landfill gas is being discharged to the atmosphere and is adding greenhouse gasses to the atmosphere. There is no economic way under NZ rules for NTRLBU to install a system to destruct these gasses due to the landfill not accepting waste at present.

7.6 The GM recommends that NTRLBU considers a greenhouse gas credit application under UNFCCC Paris Accord Article 6.

7.7 The GM requests a resolution by the NTRLBU that the GM may proceed with considering gas extraction and combustion of the Eves Valley Landfill gas, subject to the NTRLBU preparing an application for greenhouse gas credit funding.

7.8 SWAP analysis - The first of two SWAP analysis was undertaken in July, and NTRLBU staff are currently awaiting the results. A second analysis is due in September. The photo below shows the tent set up in which the analysis was undertaken.

8. Landfill life

8.1 At present the landfill life if NTRLBU continue as normal, is approximately 10 years. This reduced life has resulted in a number of significant financial effects, including a shorter period over which NTRLBU can recover post closure costs, and increased depreciation required on the landfill assets.

8.2 These effects have an adverse effect on the NTRLBU financial position, and will require an increase in landfill fees to recover this loss.

8.3 An opportunity has been identified which could lead to a significant increase in landfill airspace. This opportunity involves adding a mass buttress at the toe of the landfill. The initial concept has been developed which could allow approximately double the airspace that NTRLBU currently has to be developed, but this needs to be confirmed by both detailed planning and stability assessments. These assessments are being undertaken at present and NTRLBU staff hope to have further information prior to the December 2020 NTRLBU Board meeting. Should these options be found viable this will increase landfill life to the end of the consent period and will reverse many of the financial losses NTRLBU is reporting for the 2019/2020 year.

9. Finances

9.1 Landfill volume has recovered almost back to pre-COVID 19 levels.

Graph showing the effect of COVID 19 on the waste mass at York Valley

9.2 Income Account for the period to 30 June 2020.

Nelson Tasman Regional Landfill Business Unit
Income Account for the period to 30 June 2020

	Actual	Budget	Actual	%	2019/20 Budget
	Month	Month	YTD	Year	YTD	Annual
Income
Landfill Fees	851,679	816,812	9,984,789	102%	9,801,749	9,801,749
Other recoveries	16,667	4,250	61,643	121%	51,000	51,000
Interest	3,832	6,914	45,990	55%	82,972	82,972
Total Income	872,178	827,976	10,092,422	102%	9,935,721	9,935,721
Less Expenses
Staff and Administration	33,630	31,556	374,619	99%	378,676	378,676
York Valley Expenses
Landfill Operation	132,331	163,464	2,043,960	104%	1,961,568	1,961,568
ETS Levy	110,540	168,583	995,047	49%	2,023,000	2,023,000
Depreciation	278,313	18,189	474,444	217%	218,266	218,266
Aftercare provision	2,456,585	11,085	2,519,226	1894%	133,019	133,019
Contingency and Advice	24,826	19,582	178,005	76%	234,999	235,000
Eves Valley Expenses
Holding Costs	1,090	867	3,286	32%	10,400	10,400
Depreciation	1,267	1,267	15,202	100%	15,202	15,202
Aftercare provision	436,623	13,059	507,573	324%	156,708	156,708
Total Expenses	3,475,206	427,652	7,111,362	139%	5,131,838	5,131,839
Net Surplus before levy	(2,603,028)	400,324	2,981,060	62%	4,803,883	4,803,882
Local Disposal Levy	400,000	400,000	4,800,000	100%	4,800,000	4,800,000
Operating Surplus (Deficit) after Levy	(3,003,028)	324	(1,818,940)		3,883	3,882
Capital Income - PGF	13,625		13,625
Net Surplus(Deficit)	(2,989,403)	324	(1,805,315)		3,883	3,882

9.3 Balance Sheet as at 30 June 2020

Nelson Tasman Regional Landfill Business Unit
Balance Sheet as at 30 June 2020
	Current	Last Month	30 June 2019
Equity
Equity 1 July	6,504,327	6,504,327	6,285,296
Plus Net Income	(1,805,315)	1,182,088	219,031
Closing Equity	4,699,012	7,686,414	6,504,327

Which was invested as follows -
Current Assets
NCC Current Account	2,680,503	1,867,951	651,312
Debtors	572,537	5,556	549,376
NZETS units	1,979,862	1,979,862	2,584,194
Total Current Assets	5,232,902	3,853,369	3,784,882
Fixed Assets	5,373,857	5,632,492	5,801,173
Investments	3,440,105	3,436,273	3,394,115
Total Assets	14,046,864	12,922,134	12,980,170
Less Liabilities
Current Liabilities
Sundry Creditors	499,716	120,415	62,794
NCC Creditor	851,597	31,407	838,849
ETS Accrual	664,021	553,482	997,307
Aftercare provision - Current	325,200	115,270	295,340
Total Current Liabilities	2,340,534	820,574	2,194,289
Term Liabilities	7,007,318	4,415,146	4,281,555
Net Assets	4,699,012	7,686,414	6,504,327

9.4 Total income was 2% over budget.

9.5 ETS costs were 49% of the full year budget.

9.6 Aftercare provision was 2.7 million over budget.

9.7 Total expenses were 39% over budget.

9.8 Operating deficit was $1.8 million.

10. Annual Report

10.1 The Annual report (2019/2020 year) is submitted for approval at this meeting.

10.2 Following approval the annual report will be presented to NCC and TDC.

11. Business Plan

11.1 The draft NTRLBU Business Plan 2021/2022 is tabled at this board meeting for discussion and approval

11.2 The business plan generally follows the works as outlined for 21/22 in the Draft NTRLBU Activity Management Plan 2021 - 2031.

12. Activity Management Plan

12.1 The Draft NTRLBU Asset Management Plan 2021-2031 (AMP) is tabled for approval at this meeting. The AMP has developed based on NTRLBU workshop feedback.

12.2 The AMP has been bought together to the best of NTRLBU staff knowledge. It focusses on reducing operating risks, reducing significant costs, and identifying ways to safeguard effective and economic operations into the future.

12.3 The program of works has been developed to try to reflect the priorities and timing while spreading out the expenditure.

12.4 Due to the capacity at York Valley significant expenditure is planned next financial year so that NTRLBU can capitalise on the significant saving that will accrue from the works.

12.5 This will however put significant pressure on Regional Services staff in order to try to deliver the program of works.

12.6 At present the programme of works is still ambitious and will be very difficult for NRSBU staff to deliver.

12.7 It is proposed that the AMP will be updated to reflect any changes that result from the finalisation of the York Valley airspace investigation works prior to finalisation in early 2021.

13. NTRLBU Resourcing

13.1 The new Regional Services Activity Engineer commenced work on 29June 2020.

13.2 While the current Regional Services staffing (GM/OM/AE) will allow a significant improvement in capacity responsiveness, there is concern regarding their ability to deliver the capital programme outlined in the AMP.

13.3 Review of Regional Services capital programme and development works has identified that current staffing level are unlikely to allow effective delivery of all capital development activities.

13.4 The GM proposes to seek additional resources, and will be reviewing the capital programme to allow effective delivery to be achieved.

13.5 The GM has purchased a utility vehicle for Regional Services to allow staff to be on-call and respond to emergencies.

13.6 Discussion with the NCC programme manager has indicated that NCC capital projects is able to assist with overflow projects, but would prefer not to be needed for the NTRLBU (and NRSBU) base load of projects.

Author: Nathan Clarke, General Manager Regional Sewerage and Landfill

Attachments

Attachment 1: A2458270 - NTRLBU Annual Report 2019-2020 ⇩

Attachment 2: A2458271 - NTRLBU Financial Statement 19 - 20 ⇩

Important considerations for decision making

1. Fit with Purpose of Local Government

2. Consistency with Community Outcomes and Council Policy

The NTRLBU Disposal Fees feed into Council’s 2021-31 LTP and the NTRLBU Activity Management plan feeds into the NCC and TDC Activity Management Plans.

3. Risk

This report allows the community to comment on the NTRLBU fees and development through NCC community consultation processes. These comments will be considered by the Board. The risk of not approving the fees is that this could delay the NRSBU implementing its Business Plan for 2021/22, could delay the development of the Activity Management Plan, and could have a consequential effect on NCC and TDC Council Annual Plans and Activity Management Plans.

4. Financial impact

The NTRLBU 2021/22 fee reflects an increase in essential renewals expenditure and the commencement of the landfill including storm water upgrades.

5. Degree of significance and level of engagement

The NTRLBU plans are included in the Long-term Plans and Annual Plans of each Council. Consultation is undertaken by both Councils in the preparation and adoption of these plans.

6. Climate Impact

A key feature of the NTRLBU Business Plan and Activity Management Plan are projects that work toward mitigation of greenhouse gas emissions. This includes a commitment to measure and reduce greenhouse gas emissions from the facilities.

7. Inclusion of Māori in the decision making process

No engagement with Māori has been undertaken in preparing this report but iwi have representation on the Board.

8. Delegations

The Joint Committee has the following delegations to consider the Nelson Tasman Regional Landfill Business Unit :

5.6.1 Relevant Areas of responsibility:

• Landfill, including York Valley landfill and Eves Valley landfill.

5.6.2 Delegations:

The NTRLBU may without the need to seek any further authority from the councils:

(i) Set fees and charges for waste disposal at the regional landfill facilities by 30 June each year; including the power to apply discounted fees and charges for the disposal of waste in bulk; and may determine other circumstances where discounted fees and charges may be applied. For clarity, the fees and charges shall be included in the draft annual Business Plan that is submitted for Council approval each year.