AGENDA

Ordinary meeting of the

 

Nelson Regional Sewerage Business Unit

Te Rōpū ā-Rohe Para, Whakatū / Te Tai o Aorere

 

Date:		Friday 17 September 2021
Time	:		2.00p.m.
Location:		Council Chamber
Floor 2A, Civic House
110 Trafalgar Street, Nelson

Membership:

Chairperson                     Tasman District Councillor Kit Maling

Deputy Chairperson        Nelson City Councillor Tim Skinner

Members                         Nelson City Councillor Brian McGurk

        Tasman District Councillor Trevor Tuffnell

        Independent Member Brendon Silcock

        Industry Representative (non-voting) Philip Wilson

Quorum: 3

 

 

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


Nelson Regional Sewerage Business Unit

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

17 September 2021

 

 

Page No.

 

1.       Apologies

Nil

2.       Confirmation of Order of Business

3.       Interests

3.1       Updates to the Interests Register

3.2       Identify any conflicts of interest in the agenda

4.       Public Forum

5.       Confirmation of Minutes

5.1       11 June 2021                                                                        7 - 10

Document number M18699

Recommendation

That the Nelson Regional Sewerage Business Unit

1.     Confirms the minutes of the meeting of the Nelson Regional Sewerage Business Unit, held on 11 June 2021, as a true and correct record.

  

6.       Chairperson's Report

7.       Nelson Regional Sewerage Business Unit Annual Report                                         11 - 48

Document number R26152

Recommendation

That the Nelson Regional Sewerage Business Unit

1.       Receives the report Nelson Regional Sewerage Business Unit Annual Report  (R26152) and its attachment (A2497193).

 

Recommendation to the Nelson City and Tasman District Councils

That the Nelson City and Tasman District Councils

1.     Receive the Draft report Nelson Regional Sewerage Business Unit Annual Report (A2497193) of Report R26152.

 

 

8.       Nelson Regional Sewerage Business Unit Capital Carryover Report                        49 - 56

Document number R26165

Recommendation

That the Nelson Regional Sewerage Business Unit

1.     Receives the report Nelson Regional Sewerage Business Unit Capital Carryover Report (R26165); and

2.     Approves the carryover of capital ($5.977M) and Renewals budgets ($1.048M) from 2020/21 financial year to the 2021/22 financial year, to ensure continuation of urgent and planned works.

 

 

9.       Draft Nelson Regional Sewerage Business Unit Business Plan 2022/23                           57 - 73

Document number R26215

Recommendation

That the Nelson Regional Sewerage Business Unit

1.     Receives the report Draft Nelson Regional Sewerage Business Unit Business Plan 2022/23 (R26215) and its attachment (A2728794); and

2.     Approves the Draft Nelson Regional Sewerage Business Unit Business Plan (A2728794) for submission to Nelson City Council and Tasman District Council for their consideration and feedback.

 

 


 

Recommendation to the Nelson City and Tasman District Councils

That the Nelson City Council and Tasman District Councils

1.     Receive the Draft Nelson Regional Sewerage Business Unit Business Plan 2022/23 (A2728794) for review and provide feedback to the Nelson Regional Sewerage Business Unit if required.

 

 

10.     Nelson regional Sewerage Business Unit General Manager Quarterly Report         74 - 85

Document number R26161

Recommendation

That the Nelson Regional Sewerage Business Unit

1.     Receives the report Nelson regional Sewerage Business Unit General Manager Quarterly Report (R26161).

 

       

Confidential Business

11.     Exclusion of the Public

Recommendation

That the Nelson Regional Sewerage Business Unit

1.       Excludes the public from the following parts of the proceedings of this meeting.

2.       The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows: 

 

Item

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Particular interests protected (where applicable)

1

Nelson Regional Sewerage Business Unit Meeting - Confidential Minutes -  11 June 2021

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7.

The withholding of the information is necessary:

·    Section 7(2)(i)

     To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

2

Contract 25833: Nelson Regional Sewerage Scheme - Operations & Maintenance

 

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7

The withholding of the information is necessary:

·    Section 7(2)(i)

     To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

3

Contract 25834: NRSBU Biosolids Application

 

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7

The withholding of the information is necessary:

·    Section 7(2)(i)

     To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

 

 

 


Nelson Regional Sewerage Business Unit Minutes - 11 June 2021

 

 

 

Minutes of a meeting of the

Nelson Regional Sewerage Business Unit

Te Rōpū ā-Rohe Para, Whakatū / Te Tai o Aorere

Held in the Council Chamber, Floor 2A, Civic House,, 110 Trafalgar Street, Nelson on Friday 11 June 2021, commencing at 9.37a.m.

 

Present:               Tasman District Councillor K Maling (Chairperson), Nelson City Councillors B McGurk, Tasman District Councillor T Tuffnell, Independent Member B Silcock and Industry Representative (non-voting) P Wilson

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

Apologies :          Nil

 

 

1.       Apologies

            There were no apologies

 

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       14 May 2021

Document number M17644, agenda pages 6 - 8 refer.

Resolved NRSBU/2021/011

 

That the Nelson Regional Sewerage Business Unit

1.     Confirms the minutes of the meeting of the Nelson Regional Sewerage Business Unit, held on 14 May 2021, as a true and correct record.

Skinner/McGurk                                                                               Carried

  

6.       Chairperson's Report

Document number R25934

There was no Chairperson’s Report.

 

7.       Nelson Regional Sewerage Business Unit General Manager’s Report to 30 April 2021

Document number R25906, agenda pages 9 - 20 refer.

General Manager Regional Sewerage and Landfill, Nathan Clarke, presented the report. He answered questions about the Rabbit Island Biosolids consent application, the consultation process and engagement with iwi.

Mr Clarke answered questions about electricity costs, alternatives being explored to keep costs down, as well as the resignation of the Activity Engineer Regional Services.

Members requested that a Safe Work Observation site visit be scheduled for Members to visit the asset at Bells Island.

Resolved NRSBU/2021/012

 

That the Nelson Regional Sewerage Business Unit

1.     Receives the report Nelson Regional Sewerage Business Unit General Manager’s Report to 30 April 2021 (R25906).

Tuffnell/Skinner                                                                                Carried

 

 

8.       Nelson Regional Sewerage Business Unit 2020/21 Capital/Renewals Expenditure and Carryover Update

Document number R25911, agenda pages 21 - 25 refer.

Operations Manager Regional Services, Brad Nixon, presented the report. He answered questions about the capital works and renewals programme and the need for carryovers.

Resolved NRSBU/2021/013

 

That the Nelson Regional Sewerage Business Unit

1.     Receives the report Nelson Regional Sewerage Business Unit 2020/21 Capital/Renewals Expenditure and Carryover Update (R25911); and

2.     Notes that a report to approve projected carryovers from 2020/21 to 2021/22 will be presented to the first Nelson Regional Sewerage Business Unit Board Meeting in the financial year 2021/22.

Skinner/Tuffnell                                                                                Carried

       

9.       Exclusion of the Public

Resolved NRSBU/2021/014

 

That the Nelson Regional Sewerage Business Unit

1.     Excludes the public from the following parts of the proceedings of this meeting.

2.     The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

Skinner/McGurk                                                                               Carried

 

Item

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Particular interests protected (where applicable)

1

Saxton Road Pumpstation Site Report

 

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7

The withholding of the information is necessary:

·    Section 7(2)(i)

     To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

The meeting went into confidential session at 10.29a.m. and resumed in public session at 10.46a.m.

 

10.     Restatements

 

It was resolved while the public was excluded:

 

1

CONFIDENTIAL: Saxton Road Pumpstation Site Report

 

3.     Agrees that this decision be made publicly available once the purchase has been completed; and

4.     Agrees that Report R25921 and attachment         (A2669212)     remain confidential at this time.

  

There being no further business the meeting ended at 10.46a.m.

 

Confirmed as a correct record of proceedings:

 

 

 

                                                         Chairperson                                 Date

    

 


 

Item 7: Nelson Regional Sewerage Business Unit Annual Report

 

 

Nelson Regional Sewerage Business Unit

17 September 2021

 

Report Title:          Nelson Regional Sewerage Business Unit Annual Report

Report Author:      Nathan Clarke - General Manager Regional Sewerage and Landfill

Report Number:    R26152

 

 

Annual Report 2020/21

 

1.       Background

1.1       This Annual Report is a review of what has been achieved by the Nelson Regional Sewerage Business Unit (NRSBU) in the 2020/21 financial year and its level of performance against Key Performance Indicators.

1.2       The 2020/21 year included the preparation of the Activity management plan and the development of the regional pipeline upgrade. It also included the preparation of the new O&M contracts for the Biosolids Disposal and the Bell Island WWTP.

2.       Summary

2.1       The NRSBU achieved a surplus of $1,137,000 compared to a budget surplus of $1,531,000.

2.2       The principal driver for the variation was the significant change in fixed income, and the increases in O&M costs.

2.3       Fixed income decreased significantly with a 20% decrease in fixed revenue.

2.4       Operating and maintenance costs were 12% over budget. Budget increases were caused by increased O&M costs, increased electrical costs, increased biosolids disposal costs and increased consulting costs.

2.5       Capital expenditure for the year totalled $6,678,759 and included the installation of the effluent recycling facility, screening wash upgrades, inlet odour treatment upgrades, pond de-sludging, sea protection bund construction, replacement of the Dissolved Air Floatation (DAF) saturator tank, road renewals, pump station overflow screens and flooding resilience, as well as purchase of the Bell Island irrigation & fencing.

2.6       Odour generation from the WWTP has generally been minor, with no notifications received that were deemed to exceed consent parameters.

2.7       There were several odour reports received relating to biosolids application. The independent odour auditors’ services were engaged to verify these reports. As a result of three confirmed odour reports biosolids application was relocated to mitigate odour generation.

2.8       Odour patrols carried out by an independent contractor has demonstrated that the residual odours at the treatment plant have been reduced.

2.9       The effluent discharge quality has met the consent conditions for the year.

2.10     The sludge treated at Bell Island consistently met the requirements for A Grade biosolids.

2.11     The operation and maintenance contractor maintained a high level of Health and Safety vigilance. There were no lost time injuries this year. A total of 48 minor incidents and near misses were reported.

3.       Recommendation

 

That the Nelson Regional Sewerage Business Unit

1.     Receives the report Nelson Regional Sewerage Business Unit Annual Report  (R26152) and its attachment (A2497193).

 

Recommendation to the Nelson City and Tasman District Councils

That the Nelson City and Tasman District Councils

1.     Receive the Draft report Nelson Regional Sewerage Business Unit Annual Report (A2497193) of Report R26152.

 

4.       Discussion

4.1       Monitoring is undertaken by the NRSBU to assess performance for the facility, and to help assess the capacity of the system. This performance monitor is used to help assess where improvements or upgrades are needed. 

4.2       Level of Service Performance

4.2.1    The levels of service recorded over the past three years have stayed reasonably consistent. The following table summarises compliance of the levels of service.

1.     Consent non-compliance relates to provision of Cultural Health Indexing (CHI). NRSBU have been unable to get commitment from iwi to complete the required CHI.

 


 

4.3       Discharge characteristics

 

 

 

 

 

 

 

4.4       Scheme overflows

            No overflow occurred during the past year.

4.5   Odour Management

        8 reports were received. Of these three were attributed to the biosolids application operation, two were attributed to Bell Island WWTP, and two were unable to be identified.




 

4.6       Customer Group

4.6.1    Customer group meetings were held during the year and most contributors attended the meetings.

4.6.2    Customer survey responses were received from two of the five contributors – Tasman District Council, and Nelson Pine Industries

5.       Performance assessment when compared to historic performance measures.

5.1       Previous annual reports have used performance measures included in the NRSBU business plan for the year.  The NRSBU 2020/2021 business plan included different strategic goals which are discussed later in this report, however for comparison against previous reports an assessment has been made against the historic performance measures.

5.2       Wastewater reticulation, treatment and disposal services meet customers’ long term needs.”

 

Objective

Key Performance Measures

Performance

Sufficient reticulation, treatment and disposal capacity is available for loads received.

Loads do not exceed the capacity of system components.

Not achieved.

The reticulation is currently unable to convey peak flows from Tasman District Council.

The treatment plant has limitation on treatment capacity through the mechanical treatment plant.

Intergenerational equity is maintained.

Loans are repaid over 30 years (the average life of the assets).

Achieved. 

Customers are encouraged to engage with the organisation and are satisfied with the service.

All customer representatives attend at least 75% of customer meetings.

Achieved.

Customer surveys show an average score of at least 5 out of 7 on satisfaction with services.

Two customers responded to Customer survey.

Levels of service are defined in all contracts and are met.

100% compliance with service level agreements by all major contractors.

Achieved.

5.3         The cost of wastewater reticulation, treatment and disposal services are minimised”.

The above performance measure was changed in 2019 to reflect the fact that NRSBU was not focussed on minimising cost, but rather providing a cost effective service. 

Objective

Key Performance Measures

Performance

The costs of reticulation, treatment and disposal processes are cost effective.

The operational costs of reticulation, treatment and disposal processes meet the approved Annual Budgets.

Achieved. Despite a number of significant changes to overall budgets, the cost of operations is 3.5% higher than budget for the 2020/21 year.

All capital projects are delivered within budget.

Not achieved. Capital budgets were significantly underspent due to Regional Services staff capacity, and the requirement for the new staff to learn the NCC systems.

The economic lives of all assets are optimised.

Three yearly independent audit of asset management practices confirms this.

Achieved. NRSBU has had a number of assets independently valued by quantity surveyors and in-depth asset inspections have been undertaken on around 1/3 of NRSBU assets.

Customers understand the benefits of demand management and the costs, risks and environmental implications of increasing demand.

That progress made by NCC and TDC with implementation of load management policies, priorities.

Both Councils have developed inflow and infiltration strategies in their asset management plans and these strategies are part of their Long Term Plans.

Combined Loads do not exceed the capacity of the components of the system.

Achieved.

Technology choices are well understood and are proven to be reliable, sustainable and cost effective.

All significant technology choices are supported by cost benefit analysis, independent peer review, energy efficiency analysis, risk analysis and, where appropriate, by other users of those technologies.

Achieved.

5.4         “Risks associated with the services provided are identified and mitigated to a level agreed with customers and owners”.

 

Objective

Key Performance Measures

Performance

Risk management plans include all significant health and safety, environmental, cultural, social economic and contractual risks.

No event, which impacts on agreed levels of service, occurs that has not been identified in the Nelson Regional Sewerage Business Unit risk management plans.

Achieved.

Customer representatives review and approve the risk management plan annually and following any incidents which require activation of the plan.

Achieved.

Contingency plans adequately address emergency events.

Customer representatives review and approve the plans annually.

Achieved. These matters are considered during the development of the asset management plan and considered at customer meetings.

Effectiveness of plans is reviewed and confirmed following incidents which require activation of the plan.

Achieved. Incidents reported in quarterly reports and considered at customer meetings.

 

5.5         “We engage the right people, with the right skills and experience”.

 

Objective

Key Performance Measures

Performance

Those engaged with the Nelson Regional Sewerage Business Unit have the right skills, experience, and support to perform well.

Annual staff performance reviews include assessment of the skills and experience required in their role in Nelson Regional Sewerage Business Unit and their development needs are identified and met.

Not achieved.

NRSBU is understaffed. Concern regarding staffing levels has been communicated to the board.

Development and succession plans are in place.

Staff capacity issues have limited the ability of staff to undertaken development activities.

Operation and maintenance manuals reflect best practice for the management of the plant and reticulation systems and are followed consistently.

An independent audit every three years confirms this.

Achieved. The plans are currently in the process of being updated.

 

5.6         “Nelson Regional Sewerage Business Unit operates sustainably and endeavours to remedy or mitigate any identified adverse environmental, social or cultural impact”

 

Objective

Key Performance Measures

Performance

Nelson Regional Sewerage Business Unit minimises adverse environmental, social and cultural impacts where this is economically viable.

That progress towards meeting energy efficiency targets are reported on and reviewed annually.

Achieved. Energy efficiency is now reported by the O&M contractor monthly. Power consumption was over budget by $100,000 due to changed electrical supply contract, and increased rainfall  compared to 2019/20

Current capacity to utilise beneficial application of biosolids to land is sustained.

Achieved. 100% of biosolids treated at Bell Island are beneficially applied to Radiata pine plantations belonging to Tasman District Council and Nelson City Council.

Beneficial economic and environmental reuse of treated waste water is maintained or increased.

The lessee continued to use the irrigation system on Bell Island.

A test water recycling facility is has been constructed and now provided reuse water for the facility. 

Environmental, social and cultural impacts are considered in all decision making.

While this is not directly measured the Assessment of Environmental demonstrates that the NRSBU are achieving quality environmental outcomes.

 

5.7         “Good relationships are maintained with all stakeholders.”

 

Objective

Key performance Measures

Performance

Shareholders are satisfied with the strategic direction and the economic performance of the business unit.

All strategic and business plans are approved by shareholders.

Achieved.

All budget projections are met.

Not achieved. Capital Expenditure was under budget.

Good relationships are maintained with all stakeholders including owners, iwi, customers, contractors, neighbours, and the wider community.

All complaints or objections are addressed promptly.

Achieved.  While some odour issues were notified, customers were satisfied with the NRSBU response to odour complaints.

All applications for resource consents are approved.

Achieved. Currently still in the process of applying for the Rabbit Island Biosolids Application Consent.

Up to date information on activities and achievements are publicly available.

Not achieved, The NRSBU website has not been updated as was planned during 2020/2021.

 

5.8         “All statutory obligations are met”.

 

Objective

Key Performance Measures

Performance

All statutory obligations are identified and met and are included in contracts with suppliers.

100% compliance with all statutory obligations.

Achieved.

All resource consents requirements are met.

100% compliance with all statutory obligations.

Not achieved. Aberrational discharge consent condition requirements are not met due to issues with getting Cultural Health Indexing undertaken.

 

5.9       “Wastewater reticulation, treatment and disposal services meet customers’ long term needs.”

 

Objective

Key Performance Measures

Performance

Sufficient reticulation, treatment and disposal capacity is available for loads received.

Loads do not exceed the capacity of system components.

Achieved, no overflow occurred.

However, it is known that the capacity within the regional rising main network is insufficient to meet the wet weather needs of the Tasman District Councils catchment and this is in the process of being resolved.

Intergenerational equity is maintained.

Loans are repaid over 30 years (the average life of the assets).

Achieved. 

Customers are encouraged to engage with the organisation and are satisfied with the service.

All customer representatives attend at least 75% of customer meetings.

Achieved.

Customer surveys show an average score of at least 5 out of 7 on satisfaction with services.

Only 2 customers chose to respond to the survey. NRSBU takes this as an indication that the other contributors hold no significant issues with NRSBU performance.

Levels of service are defined in all contracts and are met.

100% compliance with service level agreements by all major contractors.

Achieved.

6.       Assessment of performance against the Business Plan Strategic Goals.

6.1       The strategic goals of the NRSBU set the basis for performance measurement and long-term strategies. These strategies are the outlined performance targets in the 2020/21 Business plan.

6.2       The following tables outline the performance objectives, key performance measures and what was achieved:

6.2.1    Table of NRSBU Strategic Goals as outlined in the 2020/2021 Business plan.

Strategic Goal

Objective

(This is what it looks like)

Level of Service

(This is how we do it)

Performance

We will implement and operate infrastructure considering the needs of our community. Our priorities for this are protection of public health, the environment and cultural values.

Containment and conveyance that is resilient and minimises adverse impacts on the health of the environment and community

We have sufficient capacity in our network to cope with peak flows

Not achieved – NRSBU has insufficient to accommodate the flows from TDC network. Upgrades are underway to resolve this.

We are resilient to mechanical and electrical failures and natural hazards

Not achieved – Electrical system not sized for storm flows.

Mechanical Resilience achieved.

We can readily maintain the network

Not achieved – maintenance requires the network to be removed from service.

Resilient wastewater treatment that minimises the impact on the environment and community

The treatment plant can reliably accept (N+1 for critical assets) all peak flows from the network

Not achieved- Capacity insufficient with current storm pumps and pipe network. Upgrades are currently underway.

The treatment plant can fully treat all dry weather flows

Achieved

The treatment plant does not create odour issues for the community

Not achieved, but upgrades are underway, and performance has improved compared to previous years.

Effluent Quality meets or exceeds required discharge requirements

Achieved

Long term vision that considers the future needs of the community

Our ongoing business is safeguarded through engagement with council planning processes

Achieved

We have long term plans for our activities and their impacts

Achieved

Have systems in place for the ongoing monitoring and reporting of emissions

Achieved – Further development are in progress.

Alternative methods of biosolids disposal that protect public health and the environment and are sensitive to cultural values

Have a backstop for issues with biosolids disposal

Not achieved. No backstop is currently available for biosolids disposal.

We will work towards the beneficial reuse of resources

Use of ongoing improvement processes to identify, implement and operate feasible biosolids reuse

Treatment to maintain 100% reuse of biosolids

Achieved

Increase reuse value

Not achieved – no work has been undertaken on this this year.

Maintain 100% diversion of biosolids from disposal to landfill

Achieved

Identified implement and operate feasible systems and infrastructure for the reuse of wastewater

We minimise the amount of effluent we discharge to water

Achieved – Reuse of water commenced during the year.

 


 

6.3       Capital Expenditure 2020/21

An amount of $6.678 million was spent during 2020/21 on capital and renewals projects, compared the budget of the $13.709 million – this budget included carry over from 2019/20.

Capital expenditure: Renewal and Upgrade:


 

 

6.4       Scheme Capacity Trends

Figure 2.18: Bell Island Wastewater Treatment Plant Capacity

Bells Island inflow figures are trending consistently upwards. This trend can be attributed to population growth within the contributory catchments.

Analysis of the average vs peak inflow trendlines indicates that any reduction in inflow & infiltration within the contributory catchments has been minimal.

 

 


 

6.5       Influent characteristics

The Biological Oxygen Demand (BOD) peak & 95th percentile figures spiked during 2020/21. With average BOD remaining constant this would indicate a wider range of BOD concentrations over 2020/21

 


 

The Chemical Oxygen Demand (COD) has continued the decrease over the last ten years. This demonstrates that the trade waste agreements continue to provide an incentive for industrial customers to improve on site treatment of waste water. The converging trendlines continue to confirm this.

 


 

The Total Kjeldahl Nitrogen (TKN) peaks in the wastewater received at the Bell Island Treatment Plant continues to follow a reducing trend, with a notable convergence between the average & peak trendlines.

 


Peak phosphorus levels in the influent increased over 2020/21, however peak discharge levels decreased. Discharge average phosphorus remained constant.

 


 

6.6       Nitrogen application via biosolids

The graph below shows that the application of nitrogen at Rabbit and Bell Island through biosolids application is within the capacity of these areas to receive nitrogen.

 

 

7.       Conclusion

7.1       The assessment of environmental effects carried out as part of the resource consent application demonstrates the effectiveness of the Bell Island Wastewater Treatment Plant to treat wastewater so that the discharge from Bell Island has only a minor effect on the receiving environment.  The AEE for Rabbit Island submitted as part of the NRSBU application for Biosolids Discharge consent also found no areas of environmental concern and it was concluded that our system is the best practicable option.

7.1.1    Analysis of the scheme capacity trends shows that loads to the plant have not increased at the growth projections used to develop the 2010 upgrade. The plant is well placed to continue to operate and minor improvements to capacity will be required to overcome flow related capacity issues.

7.1.2    Analysis of the scheme capacity shows that flows to the plant continue to increase and no improvement is being observed in PWWFs. Plant capacity is becoming constrained by volumetric flows, and it is expected that this will become significantly worse during rainfall events once the upgraded pipelines have been implemented. Consideration into volumetric capacity improvement at Bell Island need to be undertaken to assess the impact of this growth.

7.1.3    Analysis of the trends demonstrates that the quality of the discharge meets the required standards. Additional sampling undertaken during 20/21 for virus contaminants has not detected significant virus contaminants in the plant discharge. 

7.1.4    Desludging of pond F2 is underway this will increase the available storage and treatment capacity within the facility.

7.2       Financial Performance

Explanations for major variations from the Nelson Regional Sewerage Business Unit's 2020/21 Business Plan are as follows:

Statement of Comprehensive Income

7.2.1    Total Income is $148,080 below budget. The sales include a capital charge for access to treatment and an operational charge based on actual usage and actual operating cost. The capital charge budgeted was $4,510,000 however recovery against this was $891,890 less than budgeted.

7.2.2    Variable charges were budgeted at $3,935,000 with the actual annual charge being $500,053 above budget at $4,435,053.

7.2.3    Total expenses are $245,856 more than budget due to increased operation and maintenance largely related to the increased depreciation, management costs, and O&M costs  and Biosolids disposal costs.

 

 

 

Author:           Nathan Clarke, General Manager Regional Sewerage and Landfill

Attachments

Attachment 1:    A2497193 NRSBU Annual Finance Report   


Item 7: Nelson Regional Sewerage Business Unit Annual Report: Attachment 1

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Item 8: Nelson Regional Sewerage Business Unit Capital Carryover Report

 

 

Nelson Regional Sewerage Business Unit

27 August 2021

 

Report Title:          Nelson Regional Sewerage Business Unit Capital Carryover Report

Report Author:      Nathan Clarke - General Manager Regional Sewerage and Landfill

Report Number:    R26165

 

 

 

1.       Purpose of Report

1.1       To consider and approve the 2020/21 capital and renewals carryover requirements to 2021/22.

2.       Summary

2.1       A significant amount of Capital upgrading work has commenced but has not been completed during the 2020/2021 year. This work is necessary, and it is therefore important to carry over unspent capital from 2020/21 to 2021/22 to allow this work to be undertaken.

3.       Recommendation

 

That the Nelson Regional Sewerage Business Unit

1.     Receives the report Nelson Regional Sewerage Business Unit Capital Carryover Report (R26165); and

2.     Approves the carryover of capital ($5.977M) and Renewals budgets ($1.048M) from 2020/21 financial year to the 2021/22 financial year, to ensure continuation of urgent and planned works.

 

 

4.       Background and Discussion

4.1       NRSBU has been undertaking a challenging renewals and expenditure programme during the 2020/21 financial year.

4.2       Officers generally approach capex projects with a three-year duration, allowing a year for concept development, a year for detailed design and consenting (if required), and a year for construction.

4.3       Officers are now approaching a year’s employment within Regional Services, and as a result the current renewals and capex projects have had to be completed within an accelerated timeframe.

4.4       Business unit resource levels are lower than needed to meet the workloads, and whilst assistance has been provided from NCC Capital Projects and external support has been engaged from consultants, delivery timeframes have had to be extended.

4.5       To ensure that the final project outcomes represent high quality, high performing, and value for money installations, several project timelines have been delayed. This will result in funding required to be carried over from 2020/21 to 2021/22.

4.6       Ensuring that the correct contractor, both in terms of capability and value, has been selected for the work has also impacted on completion timeframes. This is due to the market experiencing significant capacity constraints through high post-COVID shutdown workloads.

4.7       The following tables detail overall renewals and capital expenditure as at 30 June 2021, along with the 2020/21 proposed carry-over


 

4.8       The following table details the capital expenditure carryover summary.

4.9       Specifics of proposed renewal carryovers are as follows:

4.9.1    Buildings: During the concept design process for the new operator facilities/workshop building it was identified that the concept building would be at risk of future sea level rise. An alternative structure, on an elevated platform was preferred as an appropriate solution. Earthworks is programmed to be completed this FY, with building construction during the 2021/22.

4.9.2    Inlet: Refurbishment works to the concrete inflow structure have been delayed whilst the inlet odour upgrade, high pressure milliscreen wash systems and milliscreen safety upgrades were completed. This work is now programmed for the first half of 2021/22.

4.9.3    Sludge Storage: The refurbishment of the sludge storage tank was cancelled in lieu of a new, dual tank, system. This allows for system redundancy, which will allow future maintenance works to be completed on the new tanks, greatly extending their life. Design work on the tanks is complete, and construction will commence in the first half of 2021/22.

4.9.4    Saxton Island air valve chambers: Funding was reallocated to these works following inspections identifying chamber issues and storm surge/wave action susceptibility. Remedial measures are identified, with work due to commence in the first quarter of 2021/22.

4.9.5    Aerators: There is a significant renewals project for the aeration basin scheduled to commence in 2021/22. Funding was held back this year to allow staff to review the aeration delivery system, with the intention to complete a major overhaul – resulting in greater flexibility, and significantly improved power efficiency for the aeration basin.

4.10     Specifics of proposed capital carryovers are as follows:

4.10.1  Regional pipeline duplication: Contractors have been secured to complete both section 9 (Saxton PS to SH6 – Turners & Growers), and section 11 (SH6 to Monaco lining).

·    Physical works through section 9 (Turners & Growers) has been deferred to 2021/22 to take advantage of significant savings presented by selecting a contractor who was not able to start in this FY. This contract has been awarded.

·    Procurement of a contractor to install the remedial lining to section 11 was extended, to allow NRSBU staff to de-risk the contractual arrangements around installation. This has been finalised, and the contractor selected, with physical works due to start in the first quarter of 2021/22.

4.10.2  Pump station overflow screens: Detailed design of the Songer St and Whakatu pump stations revealed several constraining factors, with insufficient hydraulic head eliminating the option of a screened gravity overflow. The requirement to install pumped overflows presented issues due to the small site footprints. To reduce construction costs, build time and constructability risks, officers identified options to repurpose existing structures to house the overflow screens and new pumps.

·        The Songer St screen install is due to start this FY, with completion in the first quarter of 2021/22.

·        Whakatu has ongoing design issues relating to installing an overflow pipeline. Final design is expected to be completed early in the first quarter of 2021/22, with construction due to commence following the completion of the Songer St screen

4.10.3  Generators: The procurement of new emergency generators took longer than anticipated, in part due to officers working to ensure the selected units provided better than specified emissions. The generators have been ordered, with units to arrive and be installed in the first half of 2021/22.

4.10.4  ATAD Odour Upgrade: Commencement of works was deferred to allow completion of the water recycling facility, and inlet odour works. Design is now completed, with the contractor securing materials, and modifying the old DAF saturator tank for re-use as an ammonia scrubber. Works will continue during the first quarter of 2021/22.

4.10.5  Sludge Management: Construction of the bund foundations is complete; this is ahead of programme. Desludging has progressed, but slightly slower than anticipated due to some equipment failures and a pause to allow F2 pond conditions to stabilise. Funding is already included in 2021/22 budgets, with carryover to supplement this and allow the full desludging scope to be completed.

4.10.6  Bell Island Irrigation & Fencing: The purchase of the existing fencing and irrigator will be completed in the 2020/21 FY, along with some upgraded fencing on Bell Island. The remainder of the fencing work will be completed in the first half of the 2021/22.

4.10.7  Sludge Storage Tanks: This funding also includes refurbishment of the existing biosolids tank, and construction of a new duplicate tank and mixing/transfer system. The sludge & biosolids tank project also includes replacing the existing submersible mixer systems with an externally pumped, nozzle mixing system which should improve in tank mixing, and reduce solids settleability. Additional work has also been undertaken to include the existing, unused, heat exchanger in the biosolids pumping system, to reduce the temperature of pumped biosolids. This is in preparation for possible replacement of the aging biosolids transfer pipe to Rabbit Island with an HDPE pipe. Work on these upgrades is scheduled to commence early in the 2021/22.

4.11     Officers have been advised by TDC that because of changes to the NRSBU 2020/21 renewals/capital expenditure programme, TDC have elected to expend a portion of the funding allocated to NRSBU on work at their Motueka WWTP. As NRSBU will be completing 2020/21 work in 2021/22 these funds are still required.


 

5.       Options

5.1       Two options have been considered for the carryover – Approving the carryover and not approving the carryover. These are outlined in the table below.

5.2       Officers support Option 2 – Approving the carryover.

 

Option 1: Do not approve the carryover

Advantages

·    Less money will be spent, resulting in lower financing costs to contributors.

·    Less stress of Regional Service staff

Risks and Disadvantages

·   The capital upgrade works will not be undertaken resulting in environmental and performance issues.

Option 2: Approve the carryover

Advantages

·   The capital projects will be able to continue

·   Upgrades will be possible to reduce environmental and performance issues

Risks and Disadvantages

·  Regional services staff will be stressed delivering the capital projects

·  More capital money will be spent, which will increase the financing costs to contributors.

 

6.       Conclusion

6.1       It is recommended that $1.048M of renewals and $5.977M of capital funds will be required to carried forward into 2021/22. Of this total approximately $4.25M has already been committed either via stand-alone contracts, or through the NRSS O&M contract.

6.2       Expenditure of these funds is generally programmed for completion in the first half of 2021/22.

 

 

Author:           Nathan Clarke, General Manager Regional Sewerage and Landfill

Attachments

Nil


 

 

Important considerations for decision making

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.

Consistency with Community Outcomes and Council Policy

Our infrastructure is efficient, cost effective and meets current and future needs.

Risk

 The risk of not approving the carry-overs is that contracts let and equipment ordered will not be able to be completed, and that urgent and planned works will not be able to be undertaken.

Financial impact

This report has considered funding approved by the Councils and transfers capital funding to allow the delivery of the required capital upgrades as outlined in the annual and long term plans.

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

Climate Impact

A key feature of the capital programme is the ability to implement systems to reduce greenhouse gas emissions and environmental and cultural issues. Carryover of funds allows these programmes to continue.

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

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:

Enter into all contract necessary for the operations and management of the Business Unit in accordance with approved Budgets and the intent of the Business Plan.

Authorise all payments necessary for the operations and management of the business unit within the approve budgets and the intent of the Business Plan

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.

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

 


 

Item 9: Draft Nelson Regional Sewerage Business Unit Business Plan 2022/23

 

 

Nelson Regional Sewerage Business Unit

17 September 2021

 

Report Title:          Draft Nelson Regional Sewerage Business Unit Business Plan 2022/23

Report Author:      Nathan Clarke - General Manager Regional Sewerage and Landfill

Report Number:    R26215

 

 

 

1.       Purpose of Report

1.1       This report provides a summary of the Nelson Regional Sewerage Business Unit (NRSBU) Draft Business Plan 2022/23 (Draft BP) and seeks approval of this document for circulation to Nelson City Council (NCC) and Tasman District Council (TDC) for review and feedback.

2.       Summary

2.1       The Draft BP (A2728794) is attached for approval at this meeting. The Draft BP has been developed based on the NRSBU Activity Management Plan 2021 -2031 (A2588648) adopted by NRSBU and approved by NCC and TDC during June 2021.

3.       Recommendation

 

That the Nelson Regional Sewerage Business Unit

1.     Receives the report Draft Nelson Regional Sewerage Business Unit Business Plan 2022/23 (R26215) and its attachment (A2728794); and

2.     Approves the Draft Nelson Regional Sewerage Business Unit Business Plan (A2728794) for submission to Nelson City Council and Tasman District Council for their consideration and feedback.

 

 

 

Recommendation to Nelson City Council and Tasman District Council

That the Nelson City Council and Tasman District Councils

1.     Receive the Draft Nelson Regional Sewerage Business Unit Business Plan 2022/23 (A2728794) for review and provide feedback to the Nelson Regional Sewerage Business Unit if required.

 

 

4.       Background and Discussion

4.1       The NRSBU Memorandum of Understanding (MOU) outlines several activities required by the NRSBU along with specified timing for these activities.

4.2       The MOU also requires that the NRSBU prepare a Draft Business Plan and that this be presented to the councils by 31 December each year.

4.3       A draft Business Plan has been prepared to reflect the activities proposed in the second year of the NRSBU Activity Management Plan 2021 – 2031 (AMP) and as approved by each Council as part of the Long Term Plan process.

5.       Discussion

5.1       The AMP includes a significant amount of capital expenditure throughout the 10-year period, and the Business Plan outlines the expected expenditure over the 22/23 year period based on the AMP and for a three-year period.

5.2       This capital expenditure is required to implement several improvements to the capacity of the regional pumping and pipework network. The plan includes additional features to allow improved maintenance, and resilience to avoid overflows from the network that could contaminate the Waimea Estuary.

5.3       The AMP includes an allowance for the changes to levels of service related to redundancy and resilience. These changed levels of service will allow improved pipeline maintenance and resilience which will reduce the risk of overflows to the environment.

5.4       Key aspects of this Draft BP include:

5.4.1    A new Biosolids Application Operations and Maintenance (O&M) Contract.

5.4.2    A new Bell Island O&M contract.

5.4.3    Additional revenue has been identified associated with the increased recoveries from the septage facilities and irrigation of Bell and Best Island.

6.       Operational Costs

6.1       The costs to run the NRSBU will increase significantly in 22/23 based on the increase in depreciation and financing costs and on the expected cost increases for new Biosolids Application O&M contract and the new Bell Island O&M contract.  These increased costs have been allowed for in the AMP.

6.2       The Draft BP is based on assumptions and data associated with costs incurred during the 2021/2022 financial year.

6.3       Regional Services staff do not have capacity to carry out the amount of work required in the capital budgets for NRSBU, and additional resources will be required.

7.       Conclusion

7.1       The Draft BP varies very little compared to the programme and budgets outlined in the approved NRSBU AMP.

7.2       NRSBU will need to obtain additional resources to deliver the programme of works required by the Draft BP.

8.       Next Steps

8.1       The Draft BP will need to be circulated to Nelson City Council and Tasman District Council for their feedback.

8.2       Following receipt of any feedback NRSBU will update the document as required for approval at the December 2021 NRSBU Board meeting.

 

 

 

 

Author:           Nathan Clarke, General Manager Regional Sewerage and Landfill

Attachments

Attachment 1:    A2728794 - NRSBU Bus Plan 2022-2023 Ver 0   


Item 9: Draft Nelson Regional Sewerage Business Unit Business Plan 2022/23: Attachment 1

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Item 10: Nelson regional Sewerage Business Unit General Manager Quarterly Report

 

 

Nelson Regional Sewerage Business Unit

27 August 2021

 

Report Title:          Nelson regional Sewerage Business Unit General Manager Quarterly Report

Report Author:      Nathan Clarke - General Manager Regional Sewerage and Landfill

Report Number:    R26161

 

 

 

1.       Purpose of Report

1.1       This report is a three-monthly update by the General Manager (GM) on activities undertaken to the end of April 2021 by the Nelson Regional Sewerage Business Unit (NRSBU).

2.       Summary

2.1       Operations are generally running well.

2.2       Several rainfall events have resulted in overflows within the network during late July and August. No overflows occurred prior to 30 June 2021.

2.3       Health and Safety (H&S) improvement activities have largely been completed and there are now no significant outstanding issues. There is still a programme of improvements which are considered noncritical. These are continuing to be addressed along with any additional issues identified.

2.4       A Registration of Interest (ROI) for the lease of Best and Bell Island land process was undertaken and a lease has been signed with Raine Farms Ltd. The irrigator and fences on Bell Island have been purchased from Raine Farms as part of this transaction.

2.5       Desludging is progressing on pond F2 at Bell Island. The work is progressing steadily but has stopped for several weeks due to debris in the pond causing issues with the dredge. The desludging is expected to continue until pond F2 desludging has been completed.

2.6       The regional pipeline rehabilitation project design and procurement is well underway, with construction contracts signed and commenced for the SH6 to Monaco section and the Turners and Growers section. The T&G section of the pipeline construction is approximately 50% complete.

2.7       The new generators for the pumpstations and Bell Island are due to arrive in October and November with enabling preparation works in development.

2.8       The concept design for the renewal of the sludge storage tanks and the biosolids storage tanks has been developed and we are still awaiting quotes from external suppliers for the works.

2.9       Financial performance to 30 June 2021 is below budget, with a significant decrease in fixed contributions compared to budget. This is mostly compensated by an increase in variable contributions and other recoveries. These cost increases have occurred due to changes outside of NRSBU control.

2.10     One change from the previous quarter is the continued increase in consultancy costs related to the retendering of the NRSS O&M contract, activity management support, and assistance with the NRSS valuation.

3.       Recommendation

 

That the Nelson Regional Sewerage Business Unit

1.     Receives the report Nelson regional Sewerage Business Unit General Manager Quarterly Report (R26161).

 

 

4.       Background and Discussion

4.1       This report is the GM update to 30 June 2020.  It outlines the activities, issues and opportunities that have occurred during this period.

5.       Health and Safety (H&S)

5.1       H&S at the sites is being managed well, and no significant safety issues are currently outstanding. The programme of safety improvements is currently ongoing. Progress on these activities is being updated by the contractor in each monthly report. 

5.2       A visit to the site by NRSBU board members was undertaken in July 2021.

5.3       Table 1 below shows a list of H&S notifications for the period 30 April 2021 to 30 June 2021


 

 

Health and Safety notifications for the period to 30 April 2021

Jan 2021

Incident

 Operator splashed with wastewater

Changing diffuser plate in an aerator and when pressing on the diffuser plate wastewater sprayed out bolt hole onto the staff member.

Jan 2021

Incident

Operator banged into low hanging equipment

Walked into pumpstation and walked into endless chain. No injury.

March 2021

Incident

Minor vehicle damage

Closed garage door hit vehicle when closing.

March 2021

Near Miss

Operator splashed with wastewater

Residual pressure caused Wastewater to squirt out of pipeline. – no injury.

March 2021

Incident

Trailer drawbar support leg on trailer not correctly Engaged.

Trailer tipped to angle and cause minor diesel spill.

Spill cleaned up, trailer support reviewed, and engineering modification made to support to prevent future occurrence.

April 2021

Incident

Wind caught vehicle door and swung it open causing minor damage.

Minor property damage, no injury.

 


 

Table 2 below summarises the H&S improvements being undertaken on site.

 

H&S Projects

Comments

Work completed in the last three months:

·    Inlet screen odour ducting completed

·    Sealing inlet area

·    New pumpstation wet well covers at Saxton and Airport with integral fall protection.

Notable works currently under way:

·    Inlet odour upgrade

·    Autothermal Thermophilic Anerobic Digestion (ATAD) odour upgrade

·    Grit removal handrail replacement

Notable H&S improvement works to be commenced in the next 3 months.

·    Replacement of Beach Road PS wet well covers with integral fall protection.

6.       NRSBU Activities

6.1       NRSBU staff continue to be very busy during the period with numerous activities and projects in progress. Regional services staff capacity has become a constraint despite the secondment of an Acting Activity Engineer.

6.2       Workload has increased further, and delays have begun to occur on some projects. Without additional resource ongoing performance and projects will become further delayed.

6.3       Projects underway at present include:

6.3.1    NRSS O&M contract procurement,

6.3.2    Moturoa Rabbit Island Biosolids O&M procurement,

6.3.3    Moturoa Rabbit Island Biosolids discharge consent,

6.3.4    Rising main pipework upgrades including:

·   Relining between SH6 and Monaco

·   T&G site pipe replacement including agreeing easements

·   Section through Heslops to coincide with Saxton Creek Stage 4 project

6.3.5    New generator installation at the NRSS pump stations (PS) 

6.3.6    Overflow screening at Songer St PS

6.3.7    Overflow screening at Wakatu PS

6.3.8    Replacement of all NRSBU PS covers to improve safety and improve odour containment, and to reduced inundation risks on all the low-lying sites.

6.3.9    Consideration of site for overflow storage at Saxton Rd

6.3.10  Site improvement works at Bell Island including:

·   Generator procurement and installation

·   Recycle water system optimisation.

·   Inlet works area paving improvements

·   Pond desludging and sea defence bund.

·   Vehicle underbody wash to reduce corrosion from salt water.

·   An Expression of Interest document has been developed and is ready for review prior to release to the market. The EOI has been prepared to identify parties interested in the supply and installation of a solar power systems at the Bell Island facility. The EOI would include NRSBU considering agreeing a power purchase agreement (PPA) with an appropriate party to give electricity power supply price certainty for a long period of time and a slight saving on current power costs. This would also reduce NRSBU carbon emissions. We have had three parties’ express interest in this already prior to release of the documents.

This process is been undertaken in response to a company requesting information on which to base an offer for the installation of a system.  NRSBU consider it appropriate to allow all interested parties to consider the opportunity rather than deal with just one party. There is no commitment to proceed further if the expressions of interest do not provide appropriate benefit to NRSBU.


 

6.3.11  Other Bell Island Projects

·   Sludge tanks replacement design

·   Facilities upgrade design.

·   Odour upgrades at inlet works

·   Odour upgrade work at ATAD system

6.3.12  Renewals and maintenance on buildings and equipment.

7.       Update on Significant projects

7.1       Rabbit Island Biosolids Application Consent – The Rabbit Island Biosolids Application consent has been publicly notified with submissions closing on 19 May 2021. NRSBU have received the information and have responded to TDC asking for additional time to see whether agreement on conditions and term of the consent can be reached with the submitters.

7.2       Bell Island O&M contract - The RFP for the Operations and Maintenance of the Bell Island facility is underway, interactive meetings have been held with the tenderers. The closing date for the Tender is date for the Tender was 19th August 2021. A change to the transfer date for the current contract is being negotiated to allow time for the transfer if there is a new contractor.  The outcome of the tender is included on the NRSBU on 17 September 2021 agenda for the NRSBU board to consider and approve the procurement of the new O&M contract.

7.3       Rabbit Island O&M contract - The documents for the Biosolids Application Operations and Maintenance Contract have been released to the market. The tender process closes on 4 September 2021.

7.4       NRSS pipeline upgrade -Section 11 (Relining the section between Martin point and SH6) – has commenced. The liner will arrive in New Zealand in November 2021 and the lining project is expected to be complete before the end of the 2021 calendar year.

7.5       NRSS pipeline upgrade - Section 9 – T&G pipe replacement, construction is underway with only minor weather-related issues being encountered to date.  The contract is approximately 50% complete with the contract completion before November 2021.

7.6       Generator Purchase - The supply contract has been signed with the supplier, and the new generators are expected to arrive in October and November 2021.

7.7       Desludging of the Bell Island ponds is underway, progress has been slower than desired due to debris in the pond causing issues with the dredge.  At present 10 dewatering bags have been filled, and we are expecting to have up to 30 dewatering bags at the end of the desludging process.

7.8       Asset inspections - a concerted effort has been made to inspect the NRSS assets and undertake condition assessments over the last six months. NRSBU has engaged external resource to undertake these assessments so that the information will be available for the O&M tender process.

8.       Contract 3458 – Nelson Regional Sewerage System Operations Update

8.1       Operations are generally running well.

8.2       A significant improvement has been made in the flow metering with it being identified that the NRSS Beach Road outflow meter and the Saxton Road inflow meter both having issues. These issues have now been resolved and the flow balance is now matching within expected tolerances. This is a significant improvement.

8.3       There were no odour notifications during this period.

9.       Contract 3619 – Biosolids Application Operations Update

9.1       Application of biosolids on Moturoa Rabbit Island has been working well during this period. The contractor has had issues with failed machinery. The Biosolids Application Contract has passed the original termination date and the contractor is working under a short-term extension while NRSBU tender the service. As such the contractor does not propose to replace the failed equipment unless he is successful with the new tender.

9.2       NRSBU Officers are working with the contractor to ensure strategies are in place to ensure application capacity is retained during the tender period.

10.     Finance

10.1     The NRSBU finances improved since the third quarter, however NRSBU incurred a loss for the year.

10.2     There are four changes that have influenced the finances over the last quarter.

10.3     The first significant factor is the ongoing lower interest rate, which reduces the Return on Investment, and therefore the revenue that NRSBU collects from the Fixed Contributions. The effect of this change is a continued reduction in revenue which now equates to an under recovery against budget of $891,000 for the year to date.

10.3.1  The second issue is an increase in consultancy charges in relation to the NRSBU O&M tender contract development and the collection of Asset Data for the O&M tender. The costs for consultancy support have exceeded the budget by $91,000 for the year. Ongoing increases against budget should be expected in the 2021/22 year due to external consultants being seconded to support Regional Services Staff.

10.3.2  The third factor for the increase costs is the change to the Operations and Maintenance contract. The cost of the Operations and Maintenance has increased because of increased monitoring required by the resource consent. The unit costs also increased when the Nelmac contract was extended. The full year overspend is $219,000.

10.3.3  The additional costs are partly compensated by the reduced interest charges on the term liabilities, and by an increase in revenue from the Best Island sand royalty payments and an increase in septage disposal charges for the year totalling $209,000

10.3.4  The costs are also partly compensated by the increased flow received during the last quarter that raise variable charges with a full year surplus compared to budget of $500,000

10.4     The NRSBU has a deficit for the period to 30 June 2021 of $393,000, which is up $10,000 from the deficit of $382,000 for the third quarter. 

10.5     Table 3 below shows the NRSBU Financial Report to 30 June 2021.

 


 

 

10.6     The NRSBU financial Position as at 30 June 2021 is shown in Table 4 Below

 

11.     Discharge performance

11.1     The wastewater discharge performance from Bell Island WWTP has meet all the consent criteria for the period to June 2021, however a request for an increased discharge was requested from TDC during July 2021 to permit an increase in discharge greater than allowed under the NRSBU discharge consent. This was due to the significant and prolonged rainfall.

12.     NRSBU Resourcing

12.1     There are ongoing resource capacity issues for regional services staff. Projects are starting to be delayed due to resourcing constraints.

12.2     The works programme is being implemented for both NRSBU and NTRLBU concurrently and this includes a significant amount of capital and renewals works.

12.3     NRSBU has engaged additional support for assets inspections to allow the asset information to be ready for the O&M tender process.

12.4       The resourcing constraints are leading to some capital and operational works being delayed, and further delays are expected because of reduced staffing levels in the regional services team.

 

 

Author:           Nathan Clarke, General Manager Regional Sewerage and Landfill

Attachments

Nil

 


 

 

 

Important considerations for decision making

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.

Consistency with Community Outcomes and Council Policy

Our infrastructure is efficient, cost effective and meets current and future needs.

Risk

 This report allows the NRSBU board to monitor and review the ongoing operations of the NRSBU. The report considers risks from health and safety and compliance, and with resource consents.

Financial impact

This report has no financial impacts. It summarises financial performance against budgets.

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

Climate Impact

A key feature of the Business Plans for NRSBU 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.

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

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:

Enter into all contract necessary for the operations and management of the Business Unit in accordance with approved Budgets and the intent of the Business Plan.

Authorise all payments necessary for the operations and management of the business unit within the approve budgets and the intent of the Business Plan

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.

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.