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Notice of the ordinary meeting of the
Regional Sewerage Business Unit
Te Rōpū ā-Roha Para, Whakatū / Te Tai o Aorere
Agenda
Rārangi take
Chair Tasman District Cr Kit Maling
Deputy Chair Nelson City Cr Tim Skinner
Members Tasman District Cr Trevor Tuffnell
Nelson City Cr Brian McGurk
Brendon Silcock (Independent Member)
Vacancy (Iwi Representative)
Philip Wilson (Industry Representative; non-voting)
Pat Dougherty
Quorum: 3 Chief Executive
Nelson City Council Disclaimer
Please note that the contents of these Council and Committee Agendas have yet to be considered by Council and officer recommendations may be altered or changed by the Council in the process of making the formal Council decision
The
Nelson Regional Sewerage Business Unit (NRSBU) is a joint committee of Nelson
City and Tasman District Councils. Operation of the NRSBU is governed by
a Board, as established by a Memorandum of Understanding (A1983271).
Areas of Responsibility
· To manage and operate the wastewater treatment facilities at Bells Island and the associated reticulation network efficiently and in accordance with resource consent conditions to meet the needs of its customers.
Powers to Decide:
· The Councils are agreed that the responsibility for all management and administrative matters associated with the NRSBU operation shall be with the Board, and in particular the Board shall without the need to seek any further authority from the Councils:
o Operate a bank account for the Business Unit;
o Comply with the Procurement Policy of the Administering Council;
o Enter into all contracts necessary for the operation and management of the Business Unit in accordance with the approved budgets and intent of the Business Plan;
o Authorise all payments necessary for the operation and management of the Business Unit within the approved budgets and intent of the Business Plan;
o Do all other things, other than those things explicitly prohibited by this Memorandum of Understanding or relevant statutes, that are necessary to achieve the objectives as stated in the Strategic Plan, Asset Management Plan or Business Plan approved by the Councils;
o Comply with the Health and Safety Policy and requirements of the administering Council
· Contribute to the sanitary services assessment process of the Councils
· Contribute to and comply with the waste management plans of the Councils
· Contribute to the development of the Councils’ Development and Financial Contribution policies
· Contribute to the Councils’ Regional Policy Statement and Regional Plan Reviews
· Develop and keep under review an appropriate contract for the delivery of waste collection and disposal services with each of its customers
· Follow generally accepted accounting practices
· Follow good employment practices
Powers to Recommend to Councils:
· Any other matters under the areas of responsibility of the Business Unit and detailed in the Memorandum of Understanding
· All recommendations to Council will be subject to adoption of an equivalent resolution by the other Council, unless it is a matter specific to one Council only.
Quorum:
· The Memorandum of Understanding governing the NRSBU allows for either six or seven members to be appointed. The quorum at a meeting is either three (if six members are appointed), or four (if seven members are appointed), including at least one from each local authority.
Procedure:
· The Standing Orders of the Council providing administration to the committee will be applied at each meeting.
· The Chairperson will not have a casting vote.
· Copies of minutes of meetings of the Joint Committee will be retained by each Council for record keeping purposes.
Nelson Regional Sewerage Business Unit
14 May 2021
1. Apologies
1.1 An apology has been received from Brendan Silcock
2. Confirmation of Order of Business
3.1 Updates to the Interests Register
3.2 Identify any conflicts of interest in the agenda
Document number M16488
Recommendation
That the Nelson Regional Sewerage Business Unit 1. Confirms the minutes of the meeting of the Nelson Regional Sewerage Business Unit, held on 12 March 2021, as a true and correct record. |
6. Chairperson's Report
7. Nelson Regional Sewerage Business Unit Long Term Plan Submission Feedback Report 10 - 27
Document number R25839
Recommendation
That the Nelson Regional Sewerage Business Unit 1. Receives the report Nelson Regional Sewerage Business Unit Long Term Plan Submission Feedback Report (R25839) and its attachment (A2634083); and 2. Confirms the Operational and Capital budgets outlined in the Nelson Regional Sewerage Business Unit Activity Management Plan 2021-2031 (A2588684) and the 2021/2022 Nelson Regional Sewerage Business Unit Business Plan (A2588602). |
Recommendation to Nelson City Council and Tasman District Council
That the Nelson City Council and Tasman District Councils 1. Note that there are no changes to the 2021/2022 Nelson Regional Sewerage Business Unit Business Plan (A2588602) adopted to populate the Nelson City Council and Tasman District Council 2021 – 2031 Long Term Plans; and 2. Note that there are no changes to the Nelson Regional Sewerage Business Unit Activity Management Plan 2021-2031 (A2588684) adopted to populate the Nelson City Council and Tasman District Council 2021 – 2031 Long Term Plans. |
Nelson Regional Sewerage Business Unit - 12 March 2021
Minutes of a meeting of the Nelson Regional Sewerage Business Unit
Held in the Council Chamber, Floor 2A, Civic House, 110 Trafalgar Street, Nelson
On Friday 12 March 2021, commencing at 1.06p.m.
Present: Tasman District Councillor K Maling (Chairperson), Nelson City Councillors B McGurk, T Skinner (Deputy Chairperson), Tasman District Councillor T Tuffnell and Independent Member B Silcock
In Attendance: Tasman District Council Engineering Services Manager (R Kirby), Nelson City Council Group Manager Infrastructure (A Louverdis), General Manager Regional Sewerage and Landfill (N Clarke), Operations Manager Regional Services (B Nixon), Accountant (A Bishop) and Governance Adviser (J Brandt)
Apology: Mr P Wilson
Adjournment of Meeting |
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Resolved NRSBU/2021/001 |
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That the Nelson Regional Sewerage Business Unit 1. Adjourns the meeting for 15 minutes, to reconvene at 1.22p.m. |
Skinner/McGurk Carried |
The meeting was reconvened at 1.22p.m.
1. Apologies
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Resolved NRSBU/2021/002 |
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That the Nelson Regional Sewerage Business Unit 1. Receives and accepts the apology from Mr P Wilson for attendance. |
McGurk/Skinner Carried |
2. Confirmation of Order of Business
There was no change to the order of business
3. Interests
There were no updates to the Interests Register, and no interests with items on the agenda were declared.
4. Public Forum
There was no public forum.
5. Confirmation of Minutes
5.1 11 December 2020
Document number M15349, agenda pages 5 - 8 refer.
Resolved NRSBU/2021/003 |
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That the Nelson Regional Sewerage Business Unit 1. Confirms the minutes of the meeting of the Nelson Regional Sewerage Business Unit, held on 11 December 2020, as a true and correct record. |
Tuffnell/Skinner Carried |
6. Chairperson's Report
Tasman District Councillor Maling gave a verbal Chairperson’s report. He noted Frank Hippolite’s resignation from his role as iwi representative on the Board and that he had met with Tasman District Council’s and Nelson City Council’s respective Kaihautū to initiate the appointment of a new iwi representative. |
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Resolved NRSBU/2021/004 |
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That the Nelson Regional Sewerage Business Unit 1. Receives the Chairperson’s verbal report.
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Skinner/Tuffnell Carried |
7. Nelson Regional Sewerage Business Unit Quarterly Report
Document number R22683, agenda pages 9 - 150 refer.
General Manager Regional Sewerage and Landfill, Nathan Clarke, presented the report.
Mr Clarke answered questions about the Rabbit Island biosolid consent, a major pump failure at Beach Road, health and safety, the revised capital works programme 2021/22 including deferred items, odour complaints, contract renewals, and issues with inaccurate flow meters at Beach Road and Saxton Road catchments.
Senior Accountant, Andrew Bishop, presented the financial part of the report and answered questions about communication with customers about year-end charges, benefits and interest rates.
Resolved NRSBU/2021/005 |
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That the Nelson Regional Sewerage Business Unit 1. Receives the report Nelson Regional Sewerage Business Unit Quarterly Report (A2588005) (R22683) and its attachments (A2588684 and A2588602); and 2. Approves the following two documents for presentation to Nelson City Council and Tasman District Council: o the updated draft Nelson Regional Sewerage Business Unit 2021 – 2031 Activity Management Plan (A2588684); and o the draft Nelson Regional Sewerage Business Unit 2021/2022 Business Plan (A2588602) which includes a revised capital works programme and associated operational cost reductions as requested by both Nelson City and Tasman District Councils.
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Tuffnell/Skinner Carried |
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Recommendation to Nelson City Council and Tasman District Council NRSBU/2021/006 |
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That the Council 1. Approves the 2021/2022 Nelson Regional Sewerage Business Unit Business Plan (A2588602) for inclusion in their Long Term Plans; and 2. Approves the Nelson Regional Sewerage Business Unit Activity Management Plan 2021-2031 (A2588684) for inclusion in their Long Term Plans. |
Skinner/McGurk |
There being no further business the meeting ended at 2.12p.m.
Confirmed as a correct record of proceedings:
Chairperson
Date
Item 7: Nelson Regional Sewerage Business Unit Long Term Plan Submission Feedback Report
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Nelson Regional Sewerage Business Unit 14 May 2021 |
REPORT R25839
Nelson Regional Sewerage Business Unit Long Term Plan Submission Feedback Report
1. Purpose of Report
1.1 To summarise submissions made by members of the public in respect to the Nelson Regional Sewerage Business Unit (NRSBU) Activity Management Plan 2021 -2031 (AMP) as outlined in both the Nelson City Council (NCC) and Tasman District Council (TDC) Long Term Plans (LTPs) to assist the NRSBU in its deliberations.
1.2 To approve the Operational and Capital Budgets outlined in the NRSBU 2021 -2031 Activity Management Plan and NRSBU Business Plan 2021/22 Plans.
2. Summary
2.1 The NRSBU has prepared its AMP for inclusion in the NCC and TDC LTPs.
2.2 The AMP and its Operational and Capital budgets were approved by both NCC and TDC for inclusion in their respective Draft LTPs.
2.3 The Councils have publicly consulted on their LTPs and have provided feedback from the community to NRSBU for consideration.
2.4 The feedback from the community has been summarised and considered in this report.
2.5 The NRSBU must now deliberate on submissions and make decisions on whether to make any changes to the NRSBU AMP.
3. Recommendation
Recommendation to Nelson City Council and Tasman District Council
That the Nelson City Council and Tasman District Councils 1. Note that there are no changes to the 2021/2022 Nelson Regional Sewerage Business Unit Business Plan (A2588602) adopted to populate the Nelson City Council and Tasman District Council 2021 – 2031 Long Term Plans; and 2. Note that there are no changes to the Nelson Regional Sewerage Business Unit Activity Management Plan 2021-2031 (A2588684) adopted to populate the Nelson City Council and Tasman District Council 2021 – 2031 Long Term Plans. |
4. Background
4.1 Operational Cost and Capital Cost increases for the Nelson Regional Sewerage System have been proposed.
4.2 The proposed Operational Cost increases are required to accommodate increased O&M contract costs, as well as increased depreciation and maintenance costs.
4.3 NRSBU prepared a Draft NRSBU AMP 2021-2031 that was submitted to NCC and TDC for feedback.
4.4 Feedback was received from both Councils and both Councils requested reduction and smoothing of CAPEX, and NCC requested a reduction in OPEX charges.
4.5 NRSBU considered these requests and the Board adopted a Revised Draft Activity Management Plan which included the deferral of $5 million CAPEX from the first five years of the AMP to the last five years of the AMP.
4.6 Consideration was given by NRSBU to reducing the operational costs but after consideration it was identified that this was not considered appropriate.
4.7 The revised Draft AMP included $38 million over the 10-year AMP period for capital upgrades. The table outlining the proposed capital expenditure projects is shown in table 1 below.
4.8 This revised draft NRSBU AMP was submitted to NCC and TDC for inclusion in their Draft LTPs.
4.9 NCC took the revised NSRBU Business Plan and AMP to the April NCC Infrastructure committee where they approved the proposed changes.
4.10 NCC and TDC have subsequently consulted on their draft LTPs and feedback have been received from their communities.
4.11 The LTP submissions from each Council have been forwarded to NRSBU for consideration.
4.12 Submissions were made by residents or on behalf of organisations or their members.
4.13 This report covers the main issues raised in submissions. A copy of all the submissions received is included in Attachment 1.
4.14 Please note that all figures in the Submission Feedback Report are uninflated.
4.15 Recommendations are provided where a change to the proposal consulted on is suggested.
4.16 It is noted that NRSBU has made no response to submitters as these submissions were made to NCC and TDC and are being administered by the relevant staff within the councils.
5. Discussion
NCC Submissions
5.1 18 submissions were received which had some reference to the NRSBU.
5.2 Of the 18 submissions received 12 were in support of investment in wastewater infrastructure.
5.3 One submission indicated that Bell Island should not have a resource consent, and wanted wastewater removed from the ocean.
5.4 Two submissions requested a 100-year plan.
5.5 Two submissions requested not deferring the $5 million in CAPEX.
5.6 One submission wanted biogas facilities at wastewater system and reuse of wastewater products.
5.7 Five submissions expressed support for land application of wastewater.
5.8 Three submissions supported consideration of climate effects and consideration of relocating Bell Island WWTP.
5.9 In reviewing the feedback in relation to the NRSBU submission, there were no submissions that expressed concern regarding the NRSBU charges. Most of the submissions supported the NRSBU spending or were concerned about the deferral of spending.
5.10 Key activities contained in the NRSBU AMP relating to the submissions received include:
· Capacity increase, increased resilience, and improved maintainability for the NRSBU rising mains to accommodate growth.
· Allowance for the development of additional wastewater application to land.
· Allowance for improved emission management, including consideration of biogas production from sludge.
· Reduction of emission production.
· Ongoing reuse of biosolids as a fertiliser.
5.11 Following review of the NCC submissions it has been identified that there are no issues raised in submissions that have not been considered, and that the plan proposed addresses the bulk of the issues outlined in the submissions.
5.12 The most significant issue raised by submitters related to the deferral of $5 Million capital expenditure. This topic was considered in detail during the preparation of the NRSBU AMP and was the subject of feedback from both NCC and TDC during feedback on the Draft AMP.
5.13 Following review of the NCC submissions it has been identified that there are no issues raised in submissions that have not been considered, and that the plan proposed addresses the bulk of the issues outlined in the submissions and no changes are proposed to the Capital and Operational Budgets.
TDC Submissions
5.14 NRSBU received five submissions from TDC submitters.
5.15 All five submitters were concerned about sea level rise and climate change effects on NRSBU. There was a clear concern about the level of Bell Island and the need to plan for future relocation of the Bell Island Facility.
5.16 Workshops held by NRSBU in the preparation of the Draft 2021- 2031 Activity Management Plan included discussion regarding the purchase of land for the future relocation of the Bell Island facility.
5.17 This was an item that staff recommended be considered for inclusion in the plan, but following workshop discussions the board concluded that due to the height of the facility above Mean Sea Level (~5m), the temporary bunding being installed at present as part of the pond desludging works, and Bell Island being protected from wave energy by Rabbit Island, that there was still some time available before these decisions were required.
5.18 The NRSBU considered that it would be appropriate to delay this decision to allow time for more certainty, due to the continually improving science regarding climate change and sea level rise.
5.19 The NRSBU therefore chose not to include an allowance for the purchase of an alternative site in the 2021-2031 NRSBU AMP.
5.20 Following review of the TDC submissions it has been identified that there are no issues raised in submissions that have not been considered, and that the plan proposed addresses the bulk of the issues outlined in the submissions and no changes are proposed to the Capital and Operational budgets.
6. Options
6.1 The NRSBU has the option to adopt the Draft AMP with no changes or Adopt the AMP with changes to better reflect the submissions made by Submitters. Officers recommend Option 1.
Option 1: Adopt the Draft AMP with no changes. Officers recommend this option. |
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Advantages |
· Gives clear guidance for the Staff to deliver the programme of works and allows this programme to be started at the commencement of the 2021-22 financial year. · Supports NRSBU meeting the obligations of its Memorandum of Understanding with NCC and TDC · Assists both Councils in meeting their requirements of the LGA. |
Risks and Disadvantages |
· May not fully satisfy some submitters that we have considered their submissions. |
Option 2: Adopt the Draft Plan with changes to accommodate issues raised in submissions |
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Advantages |
· Demonstrates consideration of submitter concerns |
Risks and Disadvantages |
· Not adopting pose issues for the delivery of the plan and will require the revision of both NCC and TDC LTPs and additional approval processes to accommodate any changes to the CAPEX and OPEX charges. · Will create confusion for NRSBU and its staff on what the core programme of works is. · Will create further workload for NRSBU staff, which will further constrain their ability to deliver the current and proposed programme of works. · Creates issues for both Councils in meeting their requirements of the LGA. |
7. Conclusion
7.1 The NRSBU has considered the submissions made by both NCC and TDC submitters, and has concluded that the submissions made, in general support the actions being undertaken by NRSBU and that there is no need to reconsider or make changes to the Activity Management Plan or Business Plan.
Author: Nathan Clarke, General Manager Regional Sewerage and Landfill
Attachments
Attachment 1: A2634083 - NRSBU 2021- 2031 LTP Submission Summary ⇩
Important considerations for decision making |
1. Fit with Purpose of Local Government The NRSBU 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 NRSBU Business Plan and Activity Management Plan feeds into Nelson City and Tasman District Councils’ 2021/22 Annual Plan and Councils’ Wastewater Activity Management Plans 2021 - 2031. |
3. Risk This report refers to the NRSBU Business Plan and Activity Management Plan following LTP consultation by NCC and TDC. The risk of not approving the Business Plan and AMP is that this could delay the NCC and TDC in meeting their Local Government obligations. |
4. Financial impact The NRSBU 2021/22 Business Plan and AMP 2021 – 2031 reflects an increase in essential renewals expenditure and the commencement of the regional pipeline upgrade, and an outline of the development of the NRSBU assets over the next 10 years. This forms the basis for review of the financial impact on the Councils. |
5. Degree of significance and level of engagement The NRSBU is a Joint Committee of the two Councils and its activities 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 Business Plan and the Activity Management Plan is the inclusion of a long–term objective of greenhouse gas emissions with the commitment to measure and reduce greenhouse gas emissions from the facility and consideration about site location and retreat for vulnerable sites. |
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 Councils are agreed that the responsibility for all management and administrative matters associated with the NRSBU operation shall be with the Board, and in particular the Board shall without the need to seek any further authority from the Councils: 1. Operate a bank account for the Business Unit. 2. Comply with the Procurement Policy of the Administering Council. 3. Enter all contracts necessary for the operations and management of the Business Unit in accordance with approved budgets and the intent of the Business Plan. 4. Authorise all payments necessary for the operations and management of the Business Unit within the approved budgets and the intent of the Business Plan. 5. Do all other things, other than those things explicitly prohibited by this MOU or relevant statutes, that are necessary to achieve the objectives as stated in the Strategic Plan, Asset Management Plan or Business Plan approved by the councils. 6. Comply with the Health and Safety Policy and requirements of the Administering Council. |