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 - 12 March 2021
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
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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.
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Skinner/McGurk Carried
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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.
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McGurk/Skinner Carried
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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.
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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.
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Tuffnell/Skinner Carried
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6. Chairperson's
Report
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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
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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.
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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.
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Skinner/McGurk
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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
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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
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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).
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Recommendation to Nelson City Council and Tasman
District Council
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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.
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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.
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Option 1: Adopt the Draft AMP with no changes. Officers recommend this option.
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Advantages
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· 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.
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Risks and Disadvantages
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· May not
fully satisfy some submitters that we have considered their submissions.
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Option
2: Adopt the Draft Plan with changes to accommodate issues raised in submissions
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Advantages
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· Demonstrates
consideration of submitter concerns
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Risks and Disadvantages
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· 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.
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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 ⇩
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Important considerations for decision making
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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