AGENDA
Ordinary
meeting of the
Nelson Tasman
Regional Landfill Business Unit
Tira
ā-Rohe Pakihi Ruapara o Whakatū, o Te Tai o Aorere
Friday 8 October 2021
Commencing at 10.30a.m.
Council Chamber
Floor 2A, Civic House,
110 Trafalgar Street, Nelson
Membership:
Chairperson Nelson
City Councillor Judene Edgar
Deputy Chairperson Tasman
District Councillor Trindi Walker
Members Nelson
City Councillor Mel Courtney
Tasman District
Councillor Stuart Bryant
and Iwi
Representative Andrew Stephens
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.
The Nelson Tasman Regional Landfill Business Unit (NTRLBU)
is a joint committee of Nelson City and Tasman District Councils. The
NTRLBU is governed by a Terms of Reference (A1983272).
Areas of Responsibility:
·
Matters relating to the operation and use of the York Valley and
Eves Valley landfills as regional landfill facilities, and the timing of their
use.
Powers to Decide:
·
Setting of fees and charges for waste disposal at the regional
landfill facilities by 30 June each year; including the power to apply
discounted fees and charges for the disposal of waste in bulk; and to determine
other circumstances where discounted fees and charges may be applied.
·
Decisions to accept (or not accept) waste that is generated
outside the Nelson-Tasman region.
Power to Recommend to
Councils:
·
Any other matters under the area of responsibility of the
Business Unit
·
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 NTRLBU allows for
either four or five members to be appointed. The quorum at a meeting is
either two (if four members are appointed), or three (if five members are
appointed), including at least one from each local authority.
Procedure:
·
The Standing Orders of the Council providing administration to
the committee shall be applied at each meeting.
·
The Chairperson will not have a casting vote
·
Copies of minutes of meetings of the Nelson Tasman Regional
Landfill Business Unit will be retained by each Council for record keeping
purposes
Nelson Tasman Regional Landfill Business Unit
8
October 2021
Page
No.
1. Apologies
An apology has been received from
Iwi Representative A Stephens
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 25 June
2021 6 - 9
Document number M18750
Recommendation
|
That the Nelson Tasman Regional Landfill Business
Unit
1. Confirms the minutes of the meeting
of the Nelson Tasman Regional Landfill Business Unit, held on 25 June 2021,
as a true and correct record.
|
6. Chairperson's Report
7. Nelson Tasman
Regional Landfill Business Unit Treasury Policy 2021 and Carbon Position 10 - 24
Document number R25894
Recommendation
|
That
the Nelson Tasman Regional Landfill Business Unit
1. Receives
the report Nelson Tasman Regional Landfill Business Unit Treasury Policy 2021
and Carbon Position (R25894)
and its attachment A2605006;
and
2. Adopts the Nelson Tasman Regional
Landfill Business Unit Treasury Policy 2021 (A2605006); and
3. Notes there is an option for
the Committee to direct staff to purchase carbon units in advance of the
policy.
|
8. Nelson Tasman
Regional Landfill Business Unit Annual Report 2020-21 25 - 50
Document number R26180
Recommendation
|
That
the Nelson Tasman Regional Landfill Business Unit
1. Receives
the report Nelson Tasman Regional Landfill Business Unit Annual Report
2020-21 (R26180) and its
attachment (A2733183); and
2. Approves the Nelson Tasman
Regional Landfill Business Unit 2020/21 Annual Report R26180 (A2760709) and Nelson Tasman Regional Landfill Business Unit
– Annual Financial Statements 2020/21 (A2733183) for presentation to
Nelson City Council and Tasman District Council with delegation of all minor
amendments to the Nelson Tasman Regional Landfill Business Unit Chairperson
and General Manager.
|
Recommendation
to Nelson City Council and Tasman District Council
|
That
the Nelson City Council and Tasman District Councils
1. Receive the Nelson Tasman Regional
Landfill Business Unit Annual Report 2020-21 R26180 (A2760709) and its attachment, the Nelson Tasman Regional
Landfill Business Unit – Annual Financial Statements 2020/21
(A2733183).
|
9. Nelson Tasman
Regional Landfill Business Unit Quarterly Report 51 - 60
Document number R26184
Recommendation
|
That
the Nelson Tasman Regional Landfill Business Unit
1. Receives
the report Nelson Tasman Regional Landfill Business Unit Quarterly Report
(R26184); and
2. Approves
the delay in the submission of the Nelson Tasman Regional Landfill Business
Unit Draft Business Plan 2022/2023, until December 2021 to align with the
delivery dates of the Nelson Regional Sewerage Business Unit.
|
Confidential Business
10. Exclusion
of the Public
Recommendation
That the Nelson
Tasman Regional Landfill 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 Tasman Regional Landfill Business
Unit Meeting - Confidential Minutes - 25 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)(d)
To
avoid prejudice to measures protecting the health and safety of members of
the public
|
Nelson Tasman Regional Landfill
Business Unit Minutes - 25 June 2021
Present: Nelson
City Councillor J Edgar (Chairperson), Nelson City Councillor M Courtney, Tasman
District Councillors S Bryant and T Walker (Deputy Chairperson) and Iwi
Representative A Stephens
In
Attendance: Tasman District Council Engineering Services
Manager (R Kirby), General Manager Regional Sewerage and Landfill (N Clarke)
and Governance Adviser (E Stephenson)
Apologies : Nil
1. Apologies
There were no apologies.
2. Confirmation of
Order of Business
It was noted that the agenda
distributed to members incorrectly stated Councillor B McGurk as a member
instead of Councillor M Courtney, however, this had been corrected on the
public agenda on Council’s website.
3. Interests
There
were no updates to the Interests Register, and no interests with items on the
agenda were declared.
4. Public Forum
Attendance: Councillor Courtney entered
the meeting at 9.31am.
There was no public forum.
5. Confirmation of
Minutes
5.1 14
May 2021
Document number M17632, agenda
pages 5 - 9 refer.
|
Resolved RLBU/2021/022
|
|
|
That the Nelson Tasman
Regional Landfill Business Unit
1. Confirms
the minutes of the meeting of the Nelson Tasman Regional Landfill Business
Unit, held on 14 May 2021, as a true and correct record.
|
|
Walker/Courtney Carried
|
6. Chairperson's
Report
Document number R25954
|
The Chairperson acknowledged the work of landfill staff
and the resignation of the Regional Services Activity Engineer.
|
7. Nelson Tasman
Regional Landfill Business Unit Quarterly Report.
Document number R25940, agenda
pages 10 - 18 refer.
Attendance: Mr A Stephens entered
the meeting at 9.37am.
General Manager Regional Sewerage
and Landfill, Nathan Clarke, summarised the report, and answered questions
regarding litter management, earthworks consents, steepness of the landfill
face, stability, volume of cover fill, chemicals, review timing and budget
It was noted that ETS credits
would be a matter for discussion at the next meeting.
Further questions were answered
regarding improved contractor responses, battery collections, gas capture
efficiency, carry over budgets and staff resourcing.
|
Resolved RLBU/2021/023
|
|
|
That
the Nelson Tasman Regional Landfill Business
Unit
1. Receives the report
Nelson Tasman Regional Landfill Business Unit Quarterly Report. (R25940).
|
|
Bryant/Walker Carried
|
8. Exclusion of the
Public
|
Resolved RLBU/2021/024
|
|
|
That the Nelson Tasman
Regional Landfill 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:
|
|
Bryant/Courtney 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
|
Eves Valley Landfill Gas Management
Update.
|
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)(d)
To avoid
prejudice to measures protecting the health and safety of members of the
public
|
The meeting went into confidential session at 10.09am
and resumed in public session at 10.31am.
There being no further business the meeting ended at 10.31am.
Confirmed as a correct record of proceedings:
Chairperson
Date
Item 7: Nelson Tasman
Regional Landfill Business Unit Treasury Policy 2021 and Carbon Position
|
|
Nelson Tasman Regional Landfill Business Unit
8 October 2021
|
REPORT R25894
Nelson
Tasman Regional Landfill Business Unit Treasury Policy 2021 and Carbon Position
1. Purpose
of Report
1.1 To
adopt the new treasury policy for the Nelson Tasman Regional Landfill Business
Unit (NTRLBU).
2. Recommendation
|
That the Nelson Tasman Regional Landfill Business
Unit
1. Receives
the report Nelson Tasman Regional Landfill Business Unit Treasury Policy 2021
and Carbon Position (R25894)
and its attachment A2605006;
and
2. Adopts the Nelson Tasman Regional
Landfill Business Unit Treasury Policy 2021 (A2605006); and
3. Notes there is an option for the
Committee to direct staff to purchase carbon units in advance of the policy.
|
3. Background
3.1 The
current NTRLBU Treasury Policy is due for its three-yearly review.
3.2 The
Government has changed the way it delivers carbon credits to The New Zealand
Emissions Trading Scheme (NZETS) participants from a cash option to auction.
3.3 The
NTRLBU has a continuing requirement to obtain carbon credits to meet its
obligations under the Climate Change response Act 2002 for the carbon emissions
from its operational landfill.
3.4 The
Government’s Climate Change Commission is aiming at getting New Zealand
to zero net carbon emissions by 2050, or 5.6% less each year between 2022 and
2025, 14.75% less for every year between 2026 and 2030 and 25.9% less for every
year between 2031 and 2035. As a result, the Government has committed to
increasing its obligations under the Paris Climate accord. This is likely to
result in a significantly higher carbon price under the Emissions Trading
Scheme. The Commission expects the cost, which is currently $50 per tonne, to
rise to $150 per tonne by 2030.
4. Discussion
4.1 Nelson
City Council (NCC) has updated its Treasury Management Policy following a
review by Price Waterhouse Cooper (PwC) to continue to align with sound
Treasury management sector practice.
Carbon Credit
Policy – Emissions Trading Scheme
4.2 The
NCC review has highlighted a need to update the Carbon Credit policy –
Emissions Trading Scheme portion of the NTRLBU Treasury Policy.
4.2.1 The
minimum and maximum hedging has been reviewed, with an increase in the minimum
and maximum hedging.
4.2.2 The
Government has changed the way it delivers carbon credits to NZETS participants
from cash to auction. Changes to the policy have been made to allow the
landfill to use the NZETS auctions to obtain credits to meet its obligations.
The First Government auction of carbon units resulted in units being obtained
by bidders at a discount to the secondary market price.
Carbon position
4.3 The
Carbon Credit Policy provides for hedging for current commitments, and a
maximum of 50% of the following two years. This enables purchasing units to fix
the costs for budgets prepared during the calendar year for the next financial
year. However,
4.3.1 The
policy limits further hedging against expected rises in the price of carbon.
4.3.2 During
the NTRLBU meeting of 13 September 2019, members of the Board informally
requested buying more units.
4.3.3 The
Board may direct staff to purchase carbon units to meet the NTRLBU’s
future obligations for emission from its operational landfill beyond the policy
limits.
4.3.4 Maximum holding of units under the 2021
policy is 109,349.
4.3.5 The NTRLBU paid for its 2020 calendar year
obligations using the cash option, and currently holds 115,909 carbon units
with an average cost of $25.71. Based on budgeted volumes and unique emission
factors (UEF) this represents 2 years 5 months budgeted obligations (until
November 2023).
4.3.6 Budgeted requirements for units are $35,704
in 2023/24 and $28,848 in 2024/25.
4.3.7 Based on the 2021/22 budget assumptions of
volumes and UEF, the current holding would be used up in July 2023. Potential
additional purchases above the policy to provide cover to June 2024 - 33,000
and to June 2025 - 62,000. Purchasing additional units would fix the price.
4.3.8 The March Government auction clearing
price was $36 per unit. The secondary market price at that time was circa $37
indicating that investors are prepared to a premium to ETS register
participants. In the June auction all the available units were sold at $41.70,
which was higher than the secondary market at the time. The price has since
risen to $50, which is the current trigger price for the auction to access
additional units from the Cost Containment Reserve (CCR). The Climate Change
Commission has recommended increasing the CCR trigger price to $70 as soon as
possible.
5. Options
Treasury policy
5.1 There
are two options for the Board to consider – adopt or not adopt the
Policy. Officers support option 1.
|
Option 1: Adopt the NTRLBU
Treasury Policy 2021 (Recommended option)
|
|
Advantages
|
· changes
are in line with recommendations from Nelson City Council’s treasury
adviser and are considered current best practice
· will
allow for participation in the Governments auction of carbon units.
|
|
Risks and Disadvantages
|
· none
|
|
Option
2: Do not adopt the NTRLBU Treasury Policy 2021
|
|
Advantages
|
· no
change from existing policy
|
|
Risks and Disadvantages
|
· policy
will not conform to current best practice.
· will
not be able to participate in the Governments auction of carbon units.
|
Carbon position
5.2 There
are three options for the Board to consider. Officers support option 1 which
requires no further decision.
|
Option 1: Adhere to the policy
limits. Recommended option
|
|
Advantages
|
· In line
with financial management practice.
|
|
Risks and Disadvantages
|
· Cost of
carbon units rises significantly beyond the period covered by the policy
resulting in costs exceeding budget.
|
|
Option 2: Purchase of units below the policy limits
|
|
Advantages
|
· Release
of funding otherwise used to fund the policy.
|
|
Risks and Disadvantages
|
· Departure
from policy.
· Cost
of carbon units rises significantly beyond the period covered by the policy
resulting in costs exceeding budget.
|
|
Option
3: Purchase of units above the policy limits
|
|
Advantages
|
· Increased
surety of costs for future years.
· Effect
of future rises in the price of Carbon is mitigated by fixing the price for
future obligations.
· Leverages
the low cost of Council funding compared to the pricing of futures.
|
|
Risks and Disadvantages
|
· Departure
from policy.
· Price
is locked should the cost of units drop in the future.
· Earlier
funding required than other options.
|
6. Conclusion
6.1 The
current Treasury Policy is due for, and is in need of review.
6.2 There
is an opportunity to purchase units for future redemption at current prices
which are expected to rise significantly in the medium term.
Author: Andrew
Bishop, Accountant
Attachments
Attachment 1: A2605006
NTRLBU Treasury policy 2021 ⇩
|
Important considerations for decision making
|
|
1. Fit
with Purpose of Local Government
a) to enable
democratic decision-making and action by, and on behalf of, communities; and
(b) to promote the
economic well-being of communities in the present and for the futuretext
|
|
2. Consistency
with Community Outcomes and Council Policy
The recommendation provides for certainty in pricing
of ETS liabilities for the 2022/23 Annual Plan
|
|
3. Risk
The Joint
Committee is exposed to movements in the cost of its carbon emissions which
are considered likely to increase.
|
|
4. Financial
impact
The recommendation to purchase Carbon units in
advance of the policy will give certainty in planning by fixing the future
cost of Carbon for a longer period.
|
|
5. Degree
of significance and level of engagement
This matter is of low significance because the
matter is operational, as it is consequential to the receipt of residual
waste to the Landfill. Therefore, no engagement will occur.
|
|
6. Climate
Impact
There is no impact on climate change as a result of
this decision, as price signals for Landfill gate process are ultimately
determined by the quantum of the Local Disposal Levy.
|
|
7. Inclusion
of Māori in the decision making process
No engagement with Māori has been undertaken in
preparing this report.
|
|
8. Delegations
The Nelson Tasman Regional Landfill Business Unit
has the following delegations to consider
Areas of Responsibility:
· All
management and administrative matters associated with the operation of the
operation of the joint Committee
Delegations:
· Authorise
all payments necessary for the operation and management of the NTRLBU within
the approved budgets and intent of the Business Plan.
|
Item
7: Nelson Tasman Regional Landfill Business Unit Treasury Policy 2021 and
Carbon Position: Attachment 1
Item 8: Nelson Tasman
Regional Landfill Business Unit Annual Report 2020-21
Nelson Tasman Regional Landfill Business Unit
8 October 2021
Report Title: Nelson
Tasman Regional Landfill Business Unit Annual Report 2020-21
Report Author: Nathan
Clarke - General Manager Regional Sewerage and Landfill
Report Number: R26180
1. Purpose
of Report
1.1 This
report is to provide a summary of the annual performance of the Nelson Tasman
Regional Landfill Business Unit (NTRLBU).
2. Recommendation
|
That the Nelson Tasman Regional Landfill Business
Unit
1. Receives
the report Nelson Tasman Regional Landfill Business Unit Annual Report
2020-21 (R26180) and its
attachment (A2733183); and
2. Approves the Nelson Tasman Regional
Landfill Business Unit 2020/21 Annual Report R26180 (A2760709) and Nelson Tasman Regional Landfill Business Unit
– Annual Financial Statements 2020/21 (A2733183) for presentation to
Nelson City Council and Tasman District Council with delegation of all minor
amendments to the Nelson Tasman Regional Landfill Business Unit Chairperson
and General Manager.
|
Recommendation
to Nelson City Council and Tasman District Council
|
That
the Nelson City Council and Tasman District Councils
1. Receive the Nelson Tasman Regional
Landfill Business Unit Annual Report 2020-21 R26180 (A2760709) and its attachment, the Nelson Tasman Regional
Landfill Business Unit – Annual Financial Statements 2020/21
(A2733183).
|
3. Summary
3.1 This
annual review outlines what has been achieved by the NTRLBU in the 2020/21
financial year and its level of performance against Key Performance Indicators.
3.2 There
were no significant safety issues or incidents during the year, although there
was one injury.
3.3 A
gas hazard was identified at the Eves Valley Landfill and actions were
implemented to collect and destroy gas escaping from the landfill. This work is
being implemented.
3.4 NTRLBU
received an abatement notice during the year (July 2020), regarding stormwater
sediment discharges at York Valley. NTRLBU has embarked on stormwater upgrades
to remedy this issue.
3.5 NTRLBU
had a net surplus of $757,025 for the 2020/21 financial year, excluding gains
on revaluation.
3.6 This
surplus results from a decision made during the March 2020 COVID 19 lockdown to
adopt a conservative waste volume to accommodate an expected decrease in
economic productivity. This reduction in economic productivity did not
eventuate to the extent expected.
4. Discussion
4.1 The
York Valley landfill ran effectively during the year, with 78,000 tonnes of
waste being received.
4.2 Safety
on the site was a focus during the year. Several safety improvements were made,
including improved PPE for managing wire removal from the compactor wheels, and
a trial to reduce risks associated with the large container bins, and fire
detection and firefighting improvements being started.
4.3 There
were a number of low-level incidents (cut fingers) which led to PPE
improvements.
4.4 One
incident occurred that required the staff member to get checked out at
hospital. This involved waste falling from the compactor bins when the bin
doors were being opened at the landfill. NTRLBU investigated the incident and
has commenced a trial of an alternative hinging arrangement on the rear doors
to see whether this could mitigate this risk without incurring other
disadvantages.
4.5 Financially
the landfill has performed well with operating surplus being generated.
4.6 The
Activity Engineer for NTRLBU resigned at the end of the 2020/21 year. NTRLBU
remains very constrained in terms of resource capacity.
4.7 The
Activity Management Plan (AMP) for NTRLBU for 2021-2031 was completed and
adopted by both councils.
4.8 Landfill
airspace calculation has been refined and it is now clear that there is just
over 800,000 m3 of airspace available. Airspace is consumed at a
rate of around 100,000m3 per year, giving a remaining life of eight
years.
4.9 Landfill
stability is in the process of being reviewed and the initial indications are
that the leachate system needs to be rebuilt and additional mass is required at
the toe of the landfill to meet the required landfill stability under the
resource consent. Without stability improvement works being undertaken, the
current airspace allowance will need to be further reduced.
4.10 Waste
mass entering the landfill has remained above the projected rate with 78,000
Tonnes of waste during the 2020/21 year. A pie chart showing the
distribution of the type of waste is shown below.
5. Performance
Measured Against Business Objectives and Performance Measures
5.1 The
objectives outlined below describe the long term aims of the business
unit. Performance measure targets and dates (where they are not specified
below) are set annually in the Business Plan, along with performance measures
for projects identified in the Activity Management Plan. Performance is
reported to the Joint Committee and to the shareholding councils annually.
5.2 Table
3.1 below outlines the 2020/21 Business Objectives and the performance assessed
against these objectives.
|
Long Term Objectives
|
Key Performance
Measures
|
Performance Achieved
|
|
Landfill capacity is
available to receive solid waste generated within the Nelson Tasman
region.
|
|
At least five years’
capacity of consented landfill is available.
Adequate planning has been
completed and agreed to before the five-year wind down period begins at York
Valley.
|
Report the available
landfill airspace annually (in terms of years remaining).
|
Achieved – eight
years capacity remaining.
A team is beginning work on
the new resource consent options.
Work is being undertaken to
extend the capacity of York Valley Gully 1
|
|
Review the Landfill
Development Plan by 30 June 2021.
|
Achieved –
Development plan included in AMP and 10-year budgets
|
|
Complete actions required
by
Landfill Development Plan
for 2021/2022 period.
|
N/A
|
|
The available airspace at
the landfill is used efficiently.
|
Airspace consumption of
1.23m3 per tonne of residual waste received is maintained
or improved.
|
Airspace use measured
between July 2020 and 18 July 2021 is 1.18 m3 per tonne which is
better than the contracted density. Also considering changed charging, and
the use of Eves Valley Stage 2 remaining capacity for HAIL Material.
|
|
Disposal to landfill is
efficient and cost effective
|
|
Disposal to landfill is
cost effective for users.
|
Regularly monitor and
review financial performance.
Levels of Service (as per
Appendix B) are met, and budgets (as per current Business Plan) are
met.
|
Achieved - The landfill ran
at a surplus during the 2020/21 year. Costs will continue to increase
due to increasing regulatory costs.
|
|
The economic lives of all
assets are optimised.
|
Three yearly internal audit
of asset management practices confirms this.
|
Achieved - A review
of the assets and their valuation has been undertaken during 2020/21 as part
of the AMP development.
|
|
Consider and use new
technology where it will provide benefit.
|
Report on technology
considerations annually and identify and recommend new technology choices
that are reliable and increase efficiency (and/or reduce cost).
|
Achieved - Ongoing
assessment of the use of technology is being undertaken. Improvements are
being made regarding litter control, fire detection, Waste auditing and
stormwater management.
Further work is required in
21/22 for waste diversion, waste destruction technologies and alternative
uses of waste material as part of the option review for future landfill
options.
|
|
Risks associated with the
services provided are identified and mitigated.
|
|
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 NTRLBU
risk management plans.
|
A review of the risk matrix
was undertaken during the AMP development. Additional risk management is
being implemented regarding fire management in combination with Fire and
Emergency NZ.
Seismic stability risks for York Valley Landfill are in the process of being
reviewed, with mitigation actions being developed.
|
|
Contingency plans
adequately address emergency events.
|
Review Risk and Contingency
plan for NTRLBU by 30 June 2021.
|
Achieved – Review
identified that the risk assessment scale is different to the standard NCC
scale and therefore NTRLBU will need to revise the risk assessments using the
NCC assessment scale.
|
|
Review the effectiveness of
the Landfill Management Plan following incidents, which require activation of
the contingency plan, from 1 July 2020 and provide an incident report in the
next Quarterly General Manager’s report.
|
Achieved - Initial review
of the Landfill Management Plan has been undertaken, and issues with landfill
management are reported to the NTRLBU board Quarterly.
|
|
Performance Monitoring
|
|
The Board and key
stakeholders are kept well-informed about performance of the NTRLBU.
|
All agreed reports (as per
Appendix A) are issued on time.
|
Achieved. Notification is
given to Board Chair when unexpected events occur, and this is followed up in
the General Manager’s quarterly reports.
|
|
Those engaged with the
NTRLBU have the right skills, experience, and support to perform well.
|
The Joint Committee reviews
its performance as part of its annual report.
|
Not Undertaken.
Staffing levels with NTRBLU
are below required levels. Additional capacity is required in order to
achieve the outcomes included in the development plan.
|
|
All activities are planned
and agreed.
|
The AMP is reviewed every
three years.
|
Achieved - The AMP was
revised, and the development plan and funding incorporated into the AMP
|
|
NTRLBU operates sustainably
and endeavours to remedy or mitigate any adverse environmental, social, or
cultural impact
|
|
NTRLBU minimises adverse
environmental, social, and cultural impacts.
|
Environmental, social, and
cultural impacts are considered in decision making.
|
Achieved.
NTRLBU received an
abatement notice for stormwater discharge, and has applied for a stormwater
consent variation, and has commenced construction of improved stormwater
management facilities.
In addition, NTRLBU has
improved its litter management and fire management processes. Carbon
emissions are being reduced both at York Valley and Eves Valley.
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NTRLBU identifies waste
minimisation opportunities.
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Report quarterly regarding
waste minimisation opportunities.
Report annually on NTRLBU
waste minimisation and emission opportunities and mitigation.
Annual Business Plan shall
include an outline of the actions NTRLBU is proposing in regard to waste
minimisation, and the costs associated with these.
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Achieved - NTRLBU has
supported the development of battery diversion within the Nelson Tasman
Region.
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NTRLBU is undertaking a
trial on waste sorting and diversion from York Valley, and is also
implementing diversion of HAIL material from York Valley landfill to Eves
Valley landfill.
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Climate change effects are
managed responsibly
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NTRLBU measures the
greenhouse gas emissions of landfill activities.
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The composition of incoming
waste is assessed annually, commencing December 2020.
The emissions from the York
Valley Landfill are assessed and reported annually, commencing June
2021.
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Achieved – A swap
analysis was undertaken during the 20/21 year.
The annual emissions from
the Eves Valley closed landfill are estimated commencing June 2021. A
flare, flow meter and gas analyser are currently being installed at Eves
Valley to determine the actual gas volumes and to allow emissions assessment.
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NTRLBU reduces the greenhouse
gas emissions rate for landfill activities.
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A target for emissions per
tonne of waste is established by June 2021 and reviewed annually.
The NTRLBU will annually
report on and consider applying for a Unique Emissions Factor for landfill operations.
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The NTRLBU will annually
assess the business case for reducing emissions from landfill operations,
including the reduction of high emissions waste and the improved capture of
landfill gas. Eves valley flare and enclosed flare at York Valley are
currently being installed.
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NTRLBU mitigates its
greenhouse gas emissions.
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NTRLBU emission mitigation
plan drafted by end of FY 2020/21.
Activities associated with
the emissions mitigation plan for 2021/2022 FY are implemented.
Mitigation methods outlined
in the annual Business Plan for NTRLBU board consideration.
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NTRLBU emission mitigation
review each year in advance of annual business plan preparation.
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Good relationships are
maintained with all stakeholders
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Shareholders are satisfied
with the strategic direction and the economic performance of the business
unit.
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All business plans are
approved by shareholders.
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Achieved - NTRLBU operated
at a surplus for the 2020/21 year. Capital works budgets were, however,
underspent and capex funding will need to be carried over to 2021/22
financial year.
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Good relationships are
maintained with all stakeholders including owners, iwi, customers,
contractors, neighbours, and the wider community.
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All complaints or objections
are addressed promptly.
Up to date information on
activities and achievements are publicly available.
Regularly engages
with:
Customers
Owners
Iwi RMA practitioners
and other
stakeholders.
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Achieved.
One complaint was received
regarding litter from a neighbour, actions have been implemented to improve
litter management.
Three odour notifications
were received from a neighbour. Odour will be addressed with the improved gas
management systems being developed as part of the Carbon Emission plan.
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NTRLBU will encourage
education about waste management and minimisation.
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Information will be
published at least annually, and up to date information will be available
regarding NTRLBU activities.
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Achieved.
Up-to-date information is
available regarding NTRLBU performance and activities, however the proposed
website has not been commenced.
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All statutory obligations are
met
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All statutory obligations
are identified and met and are included in contracts with suppliers.
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100% compliance with all
statutory obligations.
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An abatement noticed was
received in regard to stormwater discharges.
Monitoring reporting at
Eves Valley landfill was found to have been overlooked in the transition
between TDC/NCC and NTRLBU. This
is being resolved. All other
requirements have been met.
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All resource consent
requirements are met.
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100% compliance with all
resource consents.
All applications for
resource consents are approved.
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Issues have been found
where consents were in the name of TDC and therefore were not being focused
on by NTRLBU. These consents will be transferred to NTRLBU and monitored and
reported on by NTRLBU.
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6. Financial
Performance
6.1 The
NTRLBU Annual Financial Statements for the year ended 30 June 2021 are appended
to this report (A2733183). A summary of NTRLBU financials for the 20/21
financial year is shown in the comprehensive revenue and expense table below.
6.2 Total
revenue was greater than budget with a revenue of $11,949,448 compared to
budget of $10,404,976.
6.3 Total
expenditure was greater than budget with total expenses of $11,192,423 compared
to a budget of $10,300,976.
6.4 NTRLBU
had a surplus, excluding revaluation gains of $727,025.
6.5 Expenses
were increased due to:
6.5.1 Increased
management costs associated with external consultants supporting the
development of the AMP, asset valuations and project development of the
landfill development plan and airspace plans.
6.5.2 Post
closure provisions - The assessed current cost of closure has increased by
$296,707, due to the revised landfill capacity. The revised landfill capacity
has reduced the landfill life to eight years, resulting in an additional
impairment compared to 2019/20.
6.5.3 The
impairment of $264,709 of landfill infrastructure is largely due to the
assessed shortened life of York Valley. This assessment is based on measured
airspace available, assessed future volumes and compaction rates.
6.6 Management
costs were $207,935 above budget, due to the use of management consultants for
most of the financial year.
6.7 Operations
and Maintenance costs were $287,000 below budget.
6.8 Emission
trade scheme costs were $209,000 above budget, due to increased waste mass
compared to budget, and due to less gas use by Pioneer Energy due to a more
efficient burner on the Hospital Boiler. The Unique Emissions Factors (UEF)
application was successful and maintained the UEF at the 2019/20 level.
6.9 Consultancy
costs were $171,000 above budget due to assistance with AMP preparation,
Airspace investigations stability review works, resource consent applications
and stormwater investigations.
6.10 Expenses
were offset by the increase revenue arising from greater than budgeted landfill
volumes.
7. Conclusion
7.1 The
2020/21 year has been a year that has included a significant amount of change
and development for the York Valley landfill.
7.2 A
number of areas requiring improvement were discovered during the year.
Improvements to this are being implemented, including gas collection at Eves
Valley landfill, litter management at York Valley landfill, gas destruction
improvements at York Valley Landfill, and improved fire management at York
Valley landfill.
7.3 Several
of these projects were started during the year and have yet to be completed.
The funding for these projects will need to be carried over into 2021/22.
Author: Nathan
Clarke, General Manager Regional Sewerage and Landfill
Attachments
Attachment 1: A2733183 NTRLBU
Annual Financial Statements 2021 ⇩
Item
8: Nelson Tasman Regional Landfill Business Unit Annual Report 2020-21:
Attachment 1
Item 9: Nelson Tasman
Regional Landfill Business Unit Quarterly Report
Nelson Tasman Regional Landfill Business Unit
8 October 2021
Report Title: Nelson
Tasman Regional Landfill Business Unit Quarterly Report
Report Author: Nathan
Clarke - General Manager Regional Sewerage and Landfill
Report Number: R26184
1. Purpose
of Report
1.1 This
report is a quarterly update by the General Manager (GM) on activities undertaken
to 30 June 2021 by the Nelson Tasman Regional Landfill Business Unit (NTRLBU).
2. Recommendation
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That the Nelson Tasman Regional Landfill Business
Unit
1. Receives
the report Nelson Tasman Regional Landfill Business Unit Quarterly Report
(R26184); and
2. Approves
the delay in the submission of the Nelson Tasman Regional Landfill Business
Unit Draft Business Plan 2022/2023, until December 2021 to align with the
delivery dates of the Nelson Regional Sewerage Business Unit.
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3. Background
3.1 Operations
are generally running well, with three minor safety incidents during the
period.
3.2 Stormwater
upgrades have commenced, with the new stormwater discharge consent and
earthworks consents for the first section of the work being granted, however rainfall
has significantly delayed construction progress.
3.3 Waste
volumes remain at a high level, with the NTRLBU finances to the end of 2020/21
resulting in surplus of greater than $700,000, due to the higher than budgeted
waste volumes.
4. Health
and Safety
4.1 Three
minor incidents have occurred at the York Valley Landfill (YVL) during the
period, with one being a strain during manual work, the second being a trip on
debris, and the third being a landfill operator not wearing a seatbelt.
4.2 Review
of the incidents has been undertaken, an updated emphasis on manual handling
activities was implemented at the toolbox meetings, and discussion was held
regarding how to improve footing on the landfill surface when working.
4.3 An
external health and safety (H&S) review has been undertaken on the safety
planning for the stormwater construction projects.
4.4 This
external review found some areas for improvement which have been further
developed in conjunction with the O&M contractor. NTRLBU will continue to
use the external H&S reviewer to review H&S planning during
construction works on the sites.
4.5 A
second external review has been undertaken to check that performance
improvements had been made following the initial review. A significant improvement
in documentation was identified during the follow up review.
4.6 The
number of small battery fire incidents at YVL has remained reasonably constant
with fire management procedures being effective.
4.7 In
order to reduce the number of fires caused by lithium-ion batteries NTRLBU has
been working in collaboration with NCC and TDC solid waste team to implement
battery acceptance facilities. NTRLBU has agreed to fund the cost of storage
containers in which to safely store the batteries received at each of the
councils’ customer service centres. This service is due to commence
shortly with communication plans being developed by NCC.
4.8 NTRLBU
is installing thermal imaging cameras and a pressurised water supply so that
fires can be identified after hours and water is on hand if necessary, to fight
a fire. This work is underway but has not yet been completed.
5. NTRLBU
Activities
5.1 It
has been a very busy period for the NTRLBU staff, and there have been several
issues and projects that have needed to be managed in addition to the normal
operations.
5.2 Stormwater
management.
5.2.1 New
resource consents for stormwater discharge and earthworks have been applied for
and granted during this period. These consents allow the construction of the
new Stormwater Retention Pond 3 (SRP3) and include NTRLBU being allowed to use
chemical flocculant in the stormwater system to reduce sediment in the
stormwater discharge.
5.2.2 The
construction of SRP3 has commenced, with rain delaying the construction.
5.2.3 The
design of SRP1 and the upgraded eastern side stormwater drains has been
completed, and construction is due to start on this section when the weather
allows.
5.2.4 The
earthworks consent for the eastern side stormwater system, the new wheel wash,
the road realignment work, and the Stormwater Retention Pond 1 (SRP1) have been
granted.
5.2.5 A
“global” earthwork consent for the site has been developed that
will allow NTRLBU to undertake the necessary earthworks required for its
operations. This will reduce the requirement for individual earthworks consent
applications for each new activity we undertake on the YVL.
5.3 Gas
management and due diligence on the hospital boiler and gas management system
has been ongoing, however further work is required prior to a recommendation
being made to the NTRLBU board. NTRLBU has engaged an external consultant to
assist with progressing this work.
5.4 Changes
to the NTRLBU Treasury policy have been discussed to allow NTRLBU to buy
sufficient NZETS credits to allow effective management in the future. This is
discussed in more detail in report R25894 (Nelson Tasman Regional Landfill
Business Unit Treasury Policy 2021 and Carbon Position) prepared by the
management accountant representing NTRLBU. This report is an item on the
current agenda.
5.5 Site
control and automation improvements: The automation improvements on the site
have been ongoing, however these have not been completed. At present due to
time limitations the weighbridge software upgrade has not commenced, and the
new website has not commenced, external support is being sought to get these
projects to progress. These projects are expected to be completed by the end of
the 2021 calendar year.
5.6 Landfill
airspace and landfill stability review. Ongoing work has been undertaken to
identify increased airspace and work on improvements to long term landfill
stability. This work has resulted in the identification of some issues with the
landfill that should be mitigated if the current filling continues without changes.
A concept design has been prepared to allow improvements to the landfill
leachate system which will also improve overall landfill geotechnical
stability. These concept design have been used to develop the 2022/2023
Business Plan funding. Further work is required to prepare detailed designs for
these issues.
5.7 The
visual screening project at Eves Valley Stage 3 has been completed, with all
4,700 plants now planted.
5.8 NTRLBU
has significantly reduced the volume of cover fill material being accepted on
the site and has commenced using cover material from onsite, however prolonged
rainfall has required granular material to be bought to site to avoid vehicles
getting stuck.
6. Odour
Management
6.1 No
odour notifications were received this period.
7. Litter
Management
7.1 The
first mobile catch fence has been manufactured and has arrived on site. This
fence is working effectively, and additional fences are being fabricated.
7.2 Additional
actions will be required to provide boundary catch fencing at key areas of the
site so that NTRLBU not only reduces the litter production using proactive
controls, but also have more than one layer of litter containment. It is
expected that this will significantly improve litter management on the site.
8. Emission
management
8.1 Gas
management work have commenced at Eves Valley landfill with the pipework,
electrical connection, and flare slab under construction.
8.2 The
ETS unit price has been increasing and is over $50. This is significantly
higher than projected, but due to the NTRLBU hedging arrangements, this will
not result in significant budget issues for the 2021/22 year. It is expected
that ETS credits will continue to rise in price over the next three years.
8.3 NTRLBU
has purchased ETS credits to the maximum allowance under the Treasury policy.
This purchase gives price certainty for the next business planning period.
8.4 The
new enclosed flare for the York Valley Landfill site is being fabricated at
present and is expected on site in mid-October. The new enclosed flare will
improve the emission destruction efficiency and will allow NTRLBU to further
reduce ETS liabilities.
9. Landfill
life
9.1 At
present the landfill life, if NTRLBU continue activities as normal, is
approximately eight years, with the current closure date around June 2029.
9.2 There
has been a further reduction in the landfill life as a result of the annual
survey and assessment of waste and compaction volumes. This reduction has led
to a landfill option review to look at ways to extend the York Valley Gully 1
capacity. Additional funding is required to allow these to be
implemented.
9.3 Additional
options are being investigated and due to the timing, the report for airspace
option has not been completed, however preliminary findings have been used to
allow the development of the 2022/2023 Business Plan. An airspace management
report is being prepared for the Board. At this time, it is expected that the
report will be presented to the Board in the second quarter of the 21/22
financial year.
9.4 NTRLBU
has engaged consultants to develop this further and to undertake the
geotechnical review required to further progress this option. A concept design
has been developed that allows the landfill to be both more stable and to allow
the development of additional airspace.
10. Finances
10.1 Landfill volumes remain high and have exceeded
expected landfill volumes for the year due to an anticipated, but not received
downturn due to COVID-19.
10.2 Waste
mass for the 2020/2021 year was 78,069 tonnes. This was significantly higher
than the 65,000 tonnes assumed for the 2020/2021 business plan prepared during
the COVID-19 March 2020 lockdown.
10.3 Income Account for the period to 30
April 2021.
10.4 The
finances show an overall surplus for the year to 30 June 2021 is $727,025
excluding valuation gains.
10.5 This
increased income has come principally from the increased volume of wastes being
received compared to the projected volumes used to generate the budget.
10.6 Balance Sheet as at 30 June 2021
10.7 Capital
Expenditure for the 2020/2021 year has been lower than desired.
10.8 The
NTRLBU will be carrying over approximately one million dollars of capital
expenditure, principally due to the slower delivery of the stormwater upgrade,
the Eves Valley access road, and the gas reticulation system upgrade than
budgeted.
10.9 A
detailed carry over report will be prepared for the December meeting of the
2021/2022 financial year once the final accounts have been processed.
11. NTRLBU
Business Plan 2022/23
11.1 The
NTRLBU 2022/23 Business Plan draft has started to be prepared. A number of
issues have complicated the preparation of the Business Plan including:
· The Nelson Tasman
Regional Landfill Business Unit Terms of Reference are being reviewed to better
align with other business units and to clarify required report and timing
issues.
· COVID- 19 Level 4
lock down occurred during the preparation of the Business Plan and led to
issues with availability of supporting information.
· Regional Services
staffing capacity has constrained the time available for the preparation of the
business Plan.
· The delay in the
receipt of the 2022/23 NTRLBU Business Plan to December 2021 is not expected to
delay the presentation of the Final Business Plan to the councils by the
current May 2022 deadline.
11.2 It
is requested for the reasons outlined above that the NTRLBU Board approve the
delay in the receipt of this plan until the NTRLBU December 2021 Quarterly
meeting.
12. NTRLBU
Resourcing
12.1 The
Regional Services Activity Engineer has resigned. His last day was 9 July 2021.
12.2 The
resignation of the Activity Engineer further constrains the resourcing capacity
for the Regional Services staff.
12.3 An
external consultant has been seconded to assist NTRLBU in a part time capacity
while a new employee is sought.
12.4 Review
of regional services capital programme and development works had already
identified that the current staffing level is unlikely to allow effective
delivery of all capital development activities. The resignation of the Activity
Engineer will exacerbate this further.
13. Conclusion
13.1 NTRLBU
operations have been running reasonably smoothly.
13.2 Weather
has caused delays in a number of key projects and some issues have been
encountered due to difficulty getting resources.
13.3 A
significant amount of work has been undertaken towards resolving the stormwater
discharge issues, and improvements are being implemented to bring litter
management to an appropriate standard.
13.4 The
new flare for York Valley and the gas management system at Eves Valley are well
in hand with only minor delays at this time.
13.5 Delivery
of the programme of works has been constrained by staff capacity and will
become further constrained until additional staff are engaged.
13.6 The
NTRLBU should expect delays in the delivery of some work items due to
insufficient staff capacity.
Author: Nathan
Clarke, General Manager Regional Sewerage and Landfill
Attachments
Nil
