Agenda of Nelson Tasman Regional Landfill Business Unit

Nelson Tasman Regional Landfill Business Unit

10 December 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 8 October 2021 6 - 12

Document number M18985

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 8 October 2021, as a true and correct record.

6. Chairperson's Report

7. Nelson Tasman Regional Landfill Business Unit - 2020/21 Capital/Renewals Expenditure and Carryover Report 13 - 19

Document number R26456

Recommendation

That the Nelson Tasman Regional Landfill Business Unit

1. Receives the report Nelson Tasman Regional Landfill Business Unit - 2020/21 Capital/Renewals Expenditure and Carryover Report (R26456); and

2. Approves the carryover of capital ($0.946M) and renewals budgets ($0.441M) from the 2020/21 financial year to the 2021/22 financial year for inclusion in the Nelson Tasman Regional Landfill Business Unit Business Plan 2022/23, to ensure continuation of urgent and planned works.

8. Nelson Tasman Regional Landfill Business Unit Airspace, Leachate System Resilience and Stability Report 20 - 56

Document number R26466

Recommendation

That the Nelson Tasman Regional Landfill Business Unit

1. Receives the report Nelson Tasman Regional Landfill Business Unit Airspace, Leachate System Resilience and Stability Report (R26466) and its attachment York Valley Landfill Stability, Resilience, and Airspace Options Assessment (A2796478); and

2. Approves in principle Combined Option 7 from the recommendations from the Tonkin and Taylor Report York Valley Landfill Stability, Resilience, and Airspace Options Assessment (A2796478) for mitigating stability, leachate and airspace issues at York Valley landfill as the technical solution to the issues outlined; and

3. Approves for inclusion in the Nelson Tasman Regional Landfill Business Unit Business Plan 2022/23 capital funding, the allocation of $3.9M in the 2022/2023 financial year and $2.0M in the 2023/24 financial year to implement leachate resilience, landfill stability, and airspace optimisation options.

9. Nelson Tasman Regional Landfill Business Unit 2022/23 Business Plan Report 57 - 82

Document number R26183

Recommendation

That the Nelson Tasman Regional Landfill Business Unit

1. Receives the report Nelson Tasman Regional Landfill Business Unit 2022/23 Business Plan Report (R26183) and its attachment (A2796488); and

2. Approves the Nelson Tasman Regional Landfill Business Unit Business Plan 2022/23 (A2796488) for presentation to the Nelson City Council and Tasman District Council with delegation of all minor amendments to the Nelson Tasman Regional Landfill Business Unit Chairperson and General Manager.

Recommendation to Nelson City and Tasman District Councils

That the Nelson City Council and Tasman District Councils

1. Receive the Nelson Tasman Regional Landfill Business Unit Business Plan 2022/23 (A2796488) for review and provide feedback to the Nelson Tasman Regional Landfill Business Unit, if required.

10. Nelson Tasman Regional Landfill Business Unit Quarterly Update Report 83 - 94

Document number R26377

Recommendation

That the Nelson Tasman Regional Landfill Business Unit

1. Receives the report Nelson Tasman Regional Landfill Business Unit Quarterly Update Report (R26377)

Nelson Tasman Regional Landfill Business Unit Minutes - 8 October 2021

Minutes of a meeting of the

Nelson Tasman Regional Landfill Business Unit

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

Held in the Council Chamber, Floor 2A, Civic House, 110 Trafalgar Street, Nelson on Friday 8 October 2021, commencing at 10.34a.m.

Present: Nelson City Councillors J Edgar (Chairperson), M Courtney and Tasman District Councillors S Bryant and T Walker (Deputy Chairperson)

In Attendance: Nelson City Council Group Manager Infrastructure (A Louverdis), Tasman District Council Engineering Services Manager (R Kirby), General Manager Regional Sewerage and Landfill (N Clarke) and Governance Advisers (E Stephenson and K McLean)

Apology: Mr A Stephens

1. Apologies

Resolved RLBU/2021/024

That the Nelson Tasman Regional Landfill Business Unit

1. Receives and accepts the apology from Mr A Stephens for attendance.

Edgar/Courtney Carried

2. Confirmation of Order of Business

There was no change to the order of business.

3. Interests

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

4. Public Forum

There was no public forum.

5. Confirmation of Minutes

5.1 25 June 2021

Document number M18750, agenda pages 6 - 9 refer.

Resolved RLBU/2021/025

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.

Bryant/Walker Carried

6. Chairperson's Report

Document number R26271

The Chair gave a verbal update reflecting on the year, noting that she was heartened by the work of Nelson Tasman Regional Landfill Business Unit Committee and staff and the step change in operations and delivery of core objectives and environmental stewardship. She noted that this had been a trying time, with the COVID-19 impacts on supply chains affecting the ability to forecast budgets confidently, but that the Unit was ending the year well.

7. Nelson Tasman Regional Landfill Business Unit Treasury Policy 2021 and Carbon Position

Document number R25894, agenda pages 10 - 24 refer.

Accountant, Andrew Bishop, presented the report and answered questions regarding carbon credit purchase.

It was agreed that regular reporting on buying options, credits and market activity be included in future quarterly reports. The importance of confidence in having sufficient credits to fulfil the business plan was discussed, together with the need to understand the cost base to be able to budget going forward. General Manager Regional Sewerage and Landfill, Nathan Clarke, noted his preference to continue buying credits, to give confidence that sufficient credits were held, although he felt purchasing credit options might be useful in the future.

It was confirmed that the policy was permissive of purchasing options on credits, and the Committee expressed its desire to evaluate this, therefore the words “and options” were added to clause 4, with an additional recommendation added delegating authority for minor amendments to the policy (clause 2).

It was agreed to amend the policy (paragraph 2.1.8 on agenda page 20) relating to developing and maintaining relationships with relevant council staff.

Resolved RLBU/2021/026

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. Delegates authority for minor amendments to the Nelson Tasman Regional Landfill Business Unit Treasury Policy 2021 to the Nelson Tasman Regional Landfill Business Unit Chairperson and the General Manager; and

3. Adopts the Nelson Tasman Regional Landfill Business Unit Treasury Policy 2021 (A2605006); and

4. Notes there is an option for the Nelson Tasman Regional Landfill Business Unit to direct staff to purchase carbon units or options in advance of the policy.

Walker/Courtney Carried

8. Nelson Tasman Regional Landfill Business Unit Annual Report 2020-21

Document number R26180, agenda pages 25 - 50 refer.

General Manager Regional Sewerage and Landfill, Nathan Clarke, spoke to the report, noting that overall, space was the main constraint and that the Unit had been trying to reduce the adverse effects of a very wet year. He advised that there were two areas where progress had not been as good as was hoped, the stormwater abatement notice, which was currently being resolved, and monitoring of the Eves Valley enclosure, with the monitoring consent currently being transferred from Tasman District Council to the NTRLBU. However it was noted good progress was being made with emissions work and being good neighbours.

A typographical error was noted in the report, it was clarified that the figure of $757,025 net surplus, as stated in the financial chart, was the correct figure and that figure of $727,025 as stated in the report, was incorrect.

Mr Clarke answered questions regarding management costs and employee resources, construction waste separation trials, post closure provisions, timing of annual reports for waste minimisation activities, increased public facing reporting being considered when developing the next business plan, levies, recovery of deficit and progress on the consent for the new landfill.

Resolved RLBU/2021/027

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.

Bryant/Courtney Carried

Recommendation to Nelson City Council and Tasman District Council
Resolved RLBU/2021/028
	*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).*
Bryant/Courtney Carried

9. Nelson Tasman Regional Landfill Business Unit Quarterly Report

Document number R26184, agenda pages 51 - 60 refer.

General Manager Regional Sewerage and Landfill, Nathan Clarke, answered questions regarding the gas supply to the hospital, stormwater consents and delays in completing the western side of the retention pond, timing of the requested review, fencing restoration to the neighbouring property and the business case for weighbridge software.

Resolved RLBU/2021/029

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.

Bryant/Courtney Carried

10. Exclusion of the Public

Resolved RLBU/2021/030

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	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

Item

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Particular interests protected (where applicable)

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

The meeting went into confidential session at 11.50am and resumed in public session at 11.51am.

The only business transacted in confidential session was to confirm the minutes. In accordance with the Local Government Official Information and Meetings Act, no reason for withholding this information from the public exists, therefore this business has been recorded in the open minutes.

1. Confirmation of Minutes

1.1 25 June 2021

Document number M18751, agenda pages 3 - 4 refer.

Resolved RLBU/2021/031

That the Nelson Tasman Regional Landfill Business Unit

1. Confirms the minutes of part of the meeting of the Nelson Tasman Regional Landfill Business Unit, held with the public excluded on 25 June 2021, as a true and correct record.

Walker/Courtney Carried

2. Re-admittance of the Public

Resolved RLBU/2021/032

That the Council

1. Re-admits the public to the meeting.

Edgar/Walker Carried

There being no further business the meeting ended at 11.51am.

Confirmed as a correct record of proceedings by resolution on (date)

Resolved

Item 7: Nelson Tasman Regional Landfill Business Unit - 2020/21 Capital/Renewals Expenditure and Carryover Report

Nelson Tasman Regional Landfill Business Unit

10 December 2021

Report Title: Nelson Tasman Regional Landfill Business Unit - 2020/21 Capital/Renewals Expenditure and Carryover Report

Report Author: Brad Nixon - Operations Manager Regional Services

Report Number: R26456

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 Tasman Regional Landfill Business Unit

1. Receives the report Nelson Tasman Regional Landfill Business Unit - 2020/21 Capital/Renewals Expenditure and Carryover Report (R26456); and

4. Background and Discussion

4.1 The NTRLBU 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 18 months 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 Specifics of proposed renewal carryover is as follows:

4.8.1 Piezo monitoring well: with works to understand the landfill stability, and impact of leachate on this, the work to replace the damaged monitoring well has been deferred. Once future monitoring requirements are confirmed this well will be replaced, in the correct location and to the correct depth.

4.8.2 Collection network/flare/gas: Work commenced during 2020/21, however were delayed with stormwater management given priority. This has progressed well in the later parts of 2020/21, with a new flare for York, gas capture system at Eves commencing, and design for upgrades to the extraction system at York underway. Works will progress through 2021/22.

4.8.3 Planting Eves stage 3: Planting this year has focused on expending the PGF funding made available to NTRLBU. With this substantially completed expenditure will move to budgeted funds.

4.8.4 Road extension: commencement of physical works to alter the York tip face access road was deferred whilst stormwater upgrade works progressed, and discussions around airspace use have been ongoing. Once these discussions are finalised the road extension works will progress, this is currently anticipated to be towards the end of the 2021/22 financial year.

4.8.5 Upgrade vehicle wash: procurement of the vehicle wash was completed during 2020/21, however installation was delayed to allow progress on stormwater upgrade works priority. The installation of the new wash has now commenced.

4.8.6 Access road development (Eves): This work was delayed due to competing priorities with stormwater issues etc at York Valley. Funds will be transferred to York Valley airspace management in 2021/22, with the Eves Valley access road works being deferred to 2022/23.

4.9 Specifics of proposed capital carryover is as follows

4.9.1 Stormwater control: Works are well underway on the stormwater upgrades at York Valley, however expenditure has been slower than anticipated due to complex design issues, and the impact of poor weather and covid on construction programmes. This capital work continues into 2021/22.

4.9.2 Investigation and Consents for Stage 2 & 3 as regional site (Eves): Progress has slowed on the new consents for Eves, and this is currently sitting with TDC for their next action. Works for the Consent for the next landfill after York Valley Gully 1 has commenced.

4.9.3 Contingency board discretion: Some funds have been expended, coded under other items. Carry over will be utilised for additional litter catch fences and to assist with the airspace management works during in 2021/22.

4.9.4 PGF Road Resurfacing: The remaining funds from this grant is required for the surfacing of the access road for the wheel wash.

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 1 – Approving the carryover.

Option 1: Approve the carryover
Advantages	· The capital projects will be able to continue. · Upgrades will be possible to reduce environmental concerns related to the current landfill operations. · Planning and actions will be able to be completed to develop the future landfill operations and reduce current and future risks. · Greenhouse gas emission reductions, landfill leachate and stability issues will be able to be addressed. · Landfill airspace will be enhanced, resulting in reduced landfill waste disposal costs.
Risks and Disadvantages	· Regional services staff will have a high workload delivering the capital projects.
Option 2: Do not approve the carryover
Advantages	· Less stress of Regional Service staff
Risks and Disadvantages	· The capital upgrade works will not be undertaken resulting in environmental and performance issues. · Landfill costs will increase as the landfill life will not be extended and NTRLBU will need to Impair the life of the landfill resulting in increased costs to landfill users.

6. Conclusion

6.1 It is recommended that $0.441M of renewals and $0.946M of capital funds will be carried forward into 2021/22.

6.2 Expenditure of these funds is programmed for completion in 2021/22.

Author: Brad Nixon, Operations Manager Regional Services

Attachments

Nil

Important considerations for decision making

Fit with Purpose of Local Government

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

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 urgent and planned works will not be able to be undertaken and works already underway will not be able to be completed. This would likely result in consent non-compliance

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 NTRLBU 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 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

Relevant Areas of responsibility:

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

Delegations:

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

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

Item 8: Nelson Tasman Regional Landfill Business Unit Airspace, Leachate System Resilience and Stability Report

Nelson Tasman Regional Landfill Business Unit

10 December 2021

Report Title: Nelson Tasman Regional Landfill Business Unit Airspace, Leachate System Resilience and Stability Report

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

Report Number: R26466

1. Purpose of Report

1.1 To outline the investigations into leachate resilience, landfill stability and Airspace Optimisation, and to allow the Nelson Tasman Regional Landfill Business Unit Board to approve appropriate remedial actions.

2. Summary

2.1 Nelson Tasman Regional Landfill Business Unit engaged Tonkin + Taylor (T+T) to assess Landfill stability, leachate resilience and airspace considerations for the York Valley Landfill.

2.2 The work undertaken identified that there are three issues which interact together and which if unmitigated create significant financial and environmental risk to NTRLBU.

2.3 The objective of the works is to ensure the resource consent conditions regarding landfill stability are satisfied and there is “Low” residual risk associated with landfill slope stability, both during the operational and the closed phases of landfill life.

2.4 In addition, NTRLBU requested that the system include a degree of resilience that is reasonably practicable to achieve with good landfill stability in the closed phase of landfill life.

2.5 Finally, the work should also include consideration of airspace and look at options to optimize airspace available for landfilling within Gully 1

2.6 The assessment identified the following:

2.6.1 York Valley Landfill requires stability contingency measures to be undertaken to maintain compliance with stability conditions of the resource consent.

2.6.2 Beyond strict resource consent compliance issues, options to improve the long-term resilience of the landfill have also been recommended.

2.7 All three airspace optimisation scenarios do not adversely affect stability and can be adopted under any combination of the contingency and resilience options that achieve consent compliance with respect to stability.

3. Recommendation

That the Nelson Tasman Regional Landfill Business Unit

4. Background and Discussion

4.1 Tonkin + Taylor (T+T) was engaged by Nelson Tasman Regional Landfill Business Unit (NTRLBU) to assess stability, resilience, and airspace considerations for the York Valley Landfill. The scope of the work undertaken is summarise below:

4.1.1 Landfill stability review – assess current and future stability in accordance with the resource consent and assess options to provide a landfill that is resilient against slope instability in the long-term.

4.1.2 Air-space scenarios – assess options to provide additional air-space and landfill life beyond that provided by the current design.

4.1.3 Leachate resilience options – assess options for improving the resilience of the current leachate drainage system against failure.

4.2 The key objective of these engagements is to:

4.2.1 Ensure the resource consent conditions regarding landfill stability are satisfied.

4.2.2 Demonstrate industry accepted practises are used to ensure there is “Low” residual risk associated with landfill slope stability, both during the operational and the closed phases of landfill life; and,

4.2.3 Ensure a high degree of resilience that is reasonably practicable to achieve with respect to landfill stability in the closed phase of landfill life.

4.2.4 Optimise airspace available for landfilling within Gully 1.

5. Landfill stability assessment

5.1 Condition D25 of resource consent RM065160 requires that landfill stability be assessed every 10m elevation in landfill height.

5.2 The stability assessment has considered the following:

5.2.1 Two-dimensional Factor of Safety (FOS) stability assessments (as required by the existing resource consent conditions)

5.2.2 Stability benefits provided by three-dimensional effects

5.2.3 Uncertainties with respect to leachate levels within the landfill and their impact on stability

5.2.4 Uncertainties with respect to the strength of refuse within the landfill, and in particular the basal refuse which has the greatest influence on landfill stability

5.2.5 Potential seismic effects that may be anticipated during the life of the landfill

5.2.6 The stability of various landfill geometries including the current landfill profile (RL 170 m) and the near future landfill profile assuming the current construction methodology

5.2.7 The finished landfill assuming the current construction methodology

5.3 The methodology utilized for assessment of landfill stability is further outlined in the attached technical report York Valley Landfill Stability, Resilience, and Airspace options Assessment (A2796478) appended to this report.

5.4 Current landfill stability

5.4.1 The elevation of the upper surface of the landfill is currently RL 170 m. Stability analyses carried out as part of our 2021 stability review indicate the following

5.4.2 Resource consent conditions with respect to stability are satisfied at the current landfill level (RL 170 m) i.e., factors of safety (FOS) against slope stability failure are at 1.5 or greater.

5.4.3 Resource consent stability criteria cannot be satisfied if filling continues to the front face above RL 170 m - i.e., factors of safety (FOS) against slope stability failure drop below 1.5.

5.4.4 To enable resource consent conditions with respect to stability to be satisfied for filling above RL 170 m (current crest level) some mitigation works will be required.

5.4.5 Concept mitigation options for ensuring the resource consent conditions are satisfied are provided in the York Valley Contingency and Closure Plan in the event of Landfill Instability which forms part of the York Valley Landfill Management Plan.

5.5 Stability improvement options.

5.5.1 A range of contingency options were outline in the Resource consent for York Valley should issues occur within the landfill. These options are outlined below.

5.5.2 No action – This is an option in the contingency plan if it can be demonstrated that current landfill stability is acceptable. Adoption of this option may require an amendment to the existing resource consent.

5.5.3 Front face setback – Setting back further refuse placement and front face construction above current levels a nominal distance from the front face to ensure that the landfill remains stable.

5.5.4 Leachate pumping – pumping of leachate from specifically designed large diameter (typically 0.6 to 1.0 m diameter) leachate pumping wells to lower leachate levels below resource consent trigger levels.

5.5.5 Buttress drains – Excavation of a number of deep leachate drainage trenches in the toe area of the landfill to facilitate lowering of leachate levels.

5.5.6 Horizontal bores – Drilling of multiple horizontal leachate drainage bores into the front face of the landfill to intercept leachate and lower leachate levels within the landfill

5.5.7 Front face surcharge/buttress – Placing a bund or blanket of fill of a nominal thickness/volume over the toe area of the landfill to increase landfill stability

5.6 Review has been undertaken on these options and has identified that adding a front face surcharge/buttress is the most effective method for mitigating the risks associated with landfill stability.

6. Toe leachate system

6.1 A key feature of the landfill that influences resilience in the landfill is the leachate drainage system.

6.1.1 The principal system for drainage of leachate into the NCC wastewater system at York Landfill is the toe leachate drainage system, which was installed in 1985. This system comprises an array of small diameter PVC pipes situated on a drainage blanket in the toe of the landfill, feeding into an 11 m deep 1050 mm diameter concrete manhole.

6.1.2 All leachate is then conveyed to the NCC sewer system via a single 150mm PVC pipe connected to the base of the manhole

6.1.3 A second level of leachate collection is present at approximately RL 132 m (at the front face) to RL 150 m (at the rear of the landfill), approximately 40 m above the base of the landfill along the gully axis, however the main function of leachate drainage within the landfill is performed by the toe leachate drainage system.

6.2 Existing resilience risk assessment

6.2.1 It has been assumed that the landfill will be closed within the next two decades but as it is a landfill, it will continue to pose some environmental risk for at least several hundred years following closure. Over this time period there are a number of event scenarios that have the potential to result in slope instability. Slope instability consequences could directly include loss of contaminants to the environment, contamination of waterways, contamination of groundwater with further consequential consequences to the landfill owner, for example including public health, financial, RMA compliance including resource consent compliance for the operational phase, public reputation and relationship with Iwi.

6.2.2 The risk assessment has concluded that even small landfill displacements arising from large earthquakes have to potential to sever the main PVC leachate outfall pipe. It is considered that improvements to the leachate system are critical and that this system is the most vulnerable component of the landfill.

6.2.3 A range of remedial responses were considered with the option being considered. These responses are discussed in detail in the appended Tonkin and Taylor report; York Valley Landfill Stability, Resilience, and Airspace options Assessment (A2796478).

6.2.4 The best remedial leachate response includes rebuilding the toe leachate drainage system to include a number of outlet pipes constructed of a more resilience material. This should be combined with a second leachate trench drain system to provide a back-up should a significant event occur that causes damage to the toe drainage system.

7. Airspace Optimisation

7.1 As part of the assessment of Airspace Scenarios at York Valley Landfill, three main airspace options have been considered.

7.2 These scenarios (Scenarios 1 to 3) provide a range of potential landfill lifespans for consideration along-side the Stability and Resilience Options provided in Sections 2 and 3 above. These are shown below in plan on Figure 2 and in cross-section on Figure 3.

Map

Description automatically generated

Figure 2 – Plan view of Airspace Scenarios 1 to 3

Figure 3 – Cross-sectional view of Airspace Scenarios 1 to 3

7.3 The assessment of airspace scenarios identified that economically it is important to extend the landfill life. For the purposes of the Airspace evaluation Scenario 2 has been adopted, however this does not preclude selection of Scenario 3 in future.

8. Criteria assessment

8.1 A multicriteria assessment was undertaken looking at the combined resolution options. This assessment is summarised in the following table:

9. Recommended Solution

9.1 Following the review of the combined options the recommended solution is to implement Combined option 7 - A buttress with trench drains and a toe leachate system upgrade.

10. Cost assessments for the works.

10.1 A review of the costs for these works was developed from the preliminary design based on scheduled rates and a quantity assessment. Refined cost estimates will be undertaken as the detailed designs for the works are completed.

10.2 The current estimated additional cost for the works is $5.9 million.

11. Implementations Review

11.1 Three implementation strategies were considered for the implementation of the Stability, Leachate and Airspace improvements at York Valley. These strategies are summarised in the following table.

11.2 Implementation Strategy 1 involved not undertaking remedial works. This involved no additional capital expenditure for the York valley Gully 1 landfill but will result in the landfill remaining a risk to the environment and will require the landfill to significantly reduce capacity (and therefore remaining life.) This option results in the highest landfill fee per tonne due to the impairment in the landfill life.

11.3 Implementation strategy 2 involves allowing capital funding to implement the solution as quickly as possible. This essentially means that the full $5.9 million will be expended in the 2022/23 financial year. This has the lowest environmental risk but will create addition risk around workload to NTRLBU staff, and financial strain to the NTRLBU owners.

11.4 Implementation Strategy 3 involves the implementation over two years with 3.9 million of the works undertaken in the 2022/23 Financial year and the remaining $2 million undertaken in the 2023/24 financial year. This strategy reduces the financial strain on the owners of NTRLBU and reduces the workload on NTRLBU Staff. The additional timeframe has a slightly higher risk of issues occurring in the landfill, but still resolves the issues in a timely fashion.

12. Options

12.1 Three options are presented below for consideration.

Strategy 1: Do nothing
Advantages	· It reduces the workload on NTRLBU staff in the short term.
Risks and Disadvantages	· This strategy result in early closure of York valley · Residual risk of the York Valley landfill that is unacceptably high. · Landfill life would be impaired which would result in cost increases for post closure provisions and landfill users. · A new landfill would need to be consented rapidly, and the costs of the new landfill would fall within this current 10 year planning period, significantly increasing the capital expenditure. · There is a risk that NTRLBU would not be able to get a new landfill consented and constructed prior to the closure of the York Valley Gully 1 landfill.
Strategy 2: Implement the recommended solution as soon as possible.
Advantages	· Resolves the issues with the landfill as soon as possible. · Has low risk and high certainty of landfill operation until 2034 and post closure. · Increases the airspace that can be gained from the works being undertaken potentially allowing longer life of York Valley Gully 1. · Reduces operational complexity for the landfill. · Results in lower landfill charges for landfill users compared to Strategy 1, but results in higher charges than Strategy 3
Risks and Disadvantages	· Increases the financial strain on the landfill owners compared to option 3. · Increases the workload on the landfill business unit staff. · May be delayed due to contracting capacity
Strategy 3: Implement the recommended solution over two years – Recommended Option
Advantages	· Resolves the issues with the landfill quickly, while allowing more flexibility in contract implementation. · Reduces the workload on NTRLBU staff slightly compared to Strategy 2 · Has low risk and high certainty of landfill operation until 2034 and post closure. · Results in lower landfill charges for landfill users. · Results in more spread-out capital expenditure than Strategy 2 which will reduce the financial stain on NTRLBU owners.
Risks and Disadvantages	· There will be loss of the ability to gain as much airspace compared to Strategy 2 · Small increase in risk that an event will occur prior to the resolution being implemented.

13. Conclusion and Next Steps

13.1 The investigation works have identified that there is an unacceptable risk to the landfill from the leachate system at present.

13.2 The stability of the landfill will no longer comply with the requirements of the landfill consent without mitigation once NTRLBU proceeds above RL 170m

13.3 The airspace in the landfill will be significantly compromised if remedial works are not implemented resulting in reduced landfill life. This will increase the landfill cost to customers compared to the alternatives.

13.4 The investigation found that the construction of Combined option 7 - A buttress with trench drains and a toe leachate system upgrade was the best technical answer. It is recommended that NTRBLU adopt this as the technical solution.

13.5 A review of the implementation strategies has identified that spreading implementation over two years results in the best spread of cost and workload, while still reducing the risks in a timely fashion. It is recommended that NTRLBU approve additional capital expenditure of $3.9 Million in 2022/23 and $2.0 million in 2023/24.

Author: Nathan Clarke, General Manager Regional Sewerage and Landfill

Attachments

Attachment 1: A2796478 York Valley Stability Leachate Resilience and Airspace report T&T Nov 2021 ⇩

Important considerations for decision making

14.1 Fit with Purpose of Local Government

14.2 Consistency with Community Outcomes and Council Policy

This report outlines activities that support the responsible management of waste within the region and are therefore in line with the NTRLBU Deed of agreement. The works are in addition to works outlined in the NTRLBU AMP but are necessary to maintain landfill capacity for the region.

14.3 Risk

This report has been developed to identify a pathway for reducing risks associated with the landfill. The works will reduce risk to what is considered an acceptable level.

The recommended implementation strategy balances environmental risks against financial and workload risks for the implementation of the works.

14.4 Financial impact

The financial impacts of the works proposed result in a reduction in the cost per tonne for disposal to landfill compared to not doing the works. These activities allow ongoing safe operation of the landfill and allow it to provide ongoing disposal services to the community.

14.5 Degree of significance and level of engagement

The work outlined in this review is in addition to works outlined in the NTRLBU AMP. The matters are urgent and while they are significant to NTRLBU they are not material in terms of there cost to the councils. Actions have been recommended to spread the costs over two years to further mitigate any financial strain on the Councils. It is considered that this matter is of low significance to NCC and TDC and therefore no specific engagement is proposed.

14.6 Climate Impact

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

14.7 Inclusion of Māori in the decision making process

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

14.8 Delegations

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

5.6.1 Relevant Areas of responsibility:

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

5.6.2 Delegations:

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

Item 9: Nelson Tasman Regional Landfill Business Unit 2022/23 Business Plan Report

Nelson Tasman Regional Landfill Business Unit

10 December 2021

Report Title: Nelson Tasman Regional Landfill Business Unit 2022/23 Business Plan Report

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

Report Number: R26183

1. Purpose of Report

1.1 This report provides a summary of the Nelson Tasman Regional Landfill Unit (NTRLBU) Business Plan 2022/23 (Business Plan) and seeks approval of the Business Plan for circulation to Nelson City Council and Tasman District Council for feedback.

2. Summary

2.1 The Business Plan generally follows the works as outlined for 2022/23 in the NTRLBU Activity Management Plan 2021 – 2031 (AMP).

2.1.1 There are some changes to the works outlined in the AMP. These changes are summarised below.

2.1.2 This Business Plan has been prepared on the assumption that the Activity Engineer role will not be able to be filled for up to six months during the 2022/23 financial year. It has been assumed that an Activity Engineer will be seconded for 6 months.

2.1.3 A business case is being prepared to increase the staff of Regional Services and to change the staff structure and will be submitted to the Group Managers of NCC and TDC for their review at the start of 2022.

2.1.4 Capital expenditure has been included to allow mitigation of risks associated with landfill stability, leachate management and airspace optimisation.

2.1.5 ETS costs have increased compared to the AMP due to increased ETS unit price (AMP assumed $42.5/NZU compared to current price of $65/NZU).

2.1.6 There is a risk that NTRLBU may not be able to achieve the reduced Unique Emission Factor assumed in the AMP due to limited regional services resources. Achieving the reduced UEF relies on capital works being implemented to schedule.

2.1.7 Local Disposal Levy (LDL) costs in this budget have decreased compared to value assumed in the NTRLBU 2021- 2031 AMP. The NTRLBU AMP assumed an LDL of $6 million for the 2022/23 year. The LDL requested by NCC and TDC has been confirmed at $2.7 million each, with a total LDL of $5.4 million

3. Recommendation

That the Nelson Tasman Regional Landfill Business Unit

1. Receives the report Nelson Tasman Regional Landfill Business Unit 2022/23 Business Plan Report (R26183) and its attachment (A2796488); and

Recommendation to Nelson City and Tasman District Councils

That the Nelson City Council and Tasman District Councils

1. Receive the Nelson Tasman Regional Landfill Business Unit Business Plan 2022/23 (A2796488) for review and provide feedback to the Nelson Tasman Regional Landfill Business Unit, if required.

4. Background and Discussion

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

4.2 The TOR requires that the NTRLBU prepares a Business Plan and that this be presented to the councils by 31 October each year. This timeframe was unable to be achieve this year. A number of factors prevented the Business Plan being able to be submitted to the NTRLBU board for approval. The board approved a delay in the submission of the Business Plan till the December 2021 Board meeting.

5. Operational Costs

5.1 The costs to run the NTRLBU will continue to increase during the 2022/23 financial year as outlined in the AMP.

5.1.1 Cost increases were outlined in the AMP due to significant increases to the Waste Minimisation Levy increase from $20/tonne in 2021/22 to $30/tonne in 2022/23.

5.1.2 The increasing cost of carbon emissions under the NZ Emissions Trading Scheme was also expected to rise, however the rise has been higher than that assumed in the AMP. The AMP assumed a carbon price of $42.50/unit in 2022/23, however the current ETS carbon price is around $65/unit. The NTRLBU hedging policy has reduced the impact of these increased ETS cost on the Landfill gate fee.

5.2 Regional Services staff capacity has reduced due to the resignation of the Activity Engineer and the NCC Regional Services team has been unable to recruit an appropriate replacement person. Consultants have been seconded to assist with the delivery of the works programme and to support activity management activities. These changes will result in increased expenditure compared to the AMP budget. It has been assumed that the Activity Engineer role will need to be outsourced to a consultant for six months of the 2022/23 financial year.

6. Capital Works Programme

6.1 The Business Plan includes a significant amount of capital expenditure, as included in the AMP, and also includes additional capital expenditure not anticipated at the time the AMP was prepared.

6.2 The capital expenditure included in the AMP relates primarily to activities to reduce the greenhouse gas emissions, and to allow the diversion of some wastes away for the York Valley Gully 1 landfill.

6.3 The capital expenditure for greenhouse gas mitigation is required to allow the implementation of improvements to the gas management system, including additional gas wells. This work will allow NTRLBU to continue to reduce its carbon emissions and reduce the cost to the community of those carbon emissions.

6.4 The Business Plan includes allowance for the stormwater improvements already in construction at York Valley, and incorporates capital funding carried over from 2020/21 into 2021/22 as outlined in the separate carryover report on the NTRLBU Agenda.

6.5 The Business Plan includes allowance for improvements to the Eves Valley landfill access and for the installation of a weighbridge to allow the diversion of HAIL and other special wastes from York Valley Gully 1.

6.6 The AMP includes an allowance of $600,000 for the construction of a buttress at the toe of York Valley Gully 1 to increase airspace.

6.7 In addition to the capital expenditure anticipated in the AMP, a stability review of York Valley Gully 1 undertaken during 2021/22 has shown that the landfill requires additional works to improve leachate system resilience and improve landfill stability. This work overlaps with the work being undertaken for the toe buttress for airspace management. This work is the subject of a separate report on the NTRLBU agenda which has requested an additional $3.9M in 2022/23 and $2.0M in 2023/24

6.8 In the event that the stability, leachate resilience and airspace works are not able to be implemented, then the landfill life will need to be reduced. This will result in an increase in post closure costs, which will result in additional increases to landfill charges in 2022/23.

6.9 NTRLBU engaged Tonkin and Taylor and DS projects to develop a concept design and provide a cost estimate based on the concept design for the leachate, stability, and airspace improvements.

6.10 Subject to the acceptance of the leachate and stability improvement capital finding by the NTRLBU, the York Valley Gully 1 landfill life can be increased from 8 years to 13 years.

6.11 A separate team has begun developing options in preparation for a consent application for a new landfill. Once the NTRLBU approve the leachate and stability improvement works for the York Valley Gully 1 landfill the consent application will continue but at a slower pace.

6.12 This Business Plan has been prepared on the assumption that NTRLBU, will approve the stability, leachate resilience and airspace work, and will proceed with these works over a two-year period.

Overall effect of the changes to the Business plan

6.13 The AMP anticipated an increase in landfill fees from $178 per tonne to $209 per tonne excluding GST for general wastes. This equated to an increase of 17%.

6.14 This revised Business Plan which includes the additional capital expenditure for the landfill stability and leachate resilience works, results in a lower gate fee increase than predicted by the AMP. The revised landfill fee in this Business Plan increases from $178 per tonne to $199 per tonne excluding GST. This equates to a fee increase of 12%.

7. Option review for NTRLBU Business plan

7.1 The following table outlines two options for the NTRLBU Business Plan. Officers support option 2.

Option 1: Do not adopt the Business Plan
Advantages	· Less work for regional services staff in the short term.
Disadvantages	· Reduction in available airspace by around 2 years, and a need to urgently get a new landfill consent. · Increased costs associated with waste discharge due to impairments being required to the landfill life. · Landfill with potential stability risks following closure. · Environmental risks associated with the landfill. · Requirement to urgently apply for a new consent for a new landfill. · Business continuity uncertainty related to gaining a new landfill discharge consent.
Option 2: Adopt the Business Plan and submit to NCC and TDC for feedback – recommended option.
Advantages	· Ensures that York Valley Landfill is stable and will not have stability issues post closure. · Adds significant capacity to the landfill airspace once the stability and leachate issues have been resolved. · Allows the landfill volume to reach the consented landfill life. · Reduces the landfill charges per tonne. · Improve operational certainty. · Allows ongoing implementation of greenhouse gas mitigation works.
Risks and Disadvantages	· Requires additional capital expenditure. · Regional services staff capacity will continue to be constrained.

8. Conclusion and Next Steps

8.1 The Business Plan 2022/23 has been prepared based on information not available at the time the AMP was developed.

8.2 This plan includes capital funding of $3.9 million not included in the AMP.

8.3 The landfill fee increase included in this business plan is 5% lower than that anticipated in the AMP. The increase in landfill general waste fee is around 12%.

8.4 Stability and leachate resilience works are required at the York Valley landfill to ensure ongoing stability of the landfill, and to allow the landfill risk profile to be reduced to an acceptable level and extend its life.

8.5 If the landfill stability works are not adopted there will be an urgent need to obtain a new landfill resource consent to allow a new landfill to be built in the next five years.

Author: Nathan Clarke, General Manager Regional Sewerage and Landfill

Attachments

Attachment 1: A2796488 Nelson Tasman Regional Landfill Business Unit Business Plan 2022/23 ⇩

Important considerations for decision making

Fit with Purpose of Local Government

Consistency with Community Outcomes and Council Policy

The NTRLBU Business Plan feed into the NCC and TDC Annual Plans and the business plan has been prepared based on the NTRLBU 2021 -2031 Activity Management Plan and incorporating additional information not available at the time the AMP was prepared.

Risk

This report includes allowance or mitigation of environmental and business continuity risks. The business plan will be submitted to TDC and NCC for feedback, this feedback will be considered by the Board. The risk of not approving the business plan is that this could delay the NRSBU implementing the works outlined and could result in significant adverse effect environmentally, financially and to the sustainability of waste management in the Nelson Tasman Region.

Financial impact

The NTRLBU 2022/23 fee reflects an increase in essential renewals expenditure and the commencement of the landfill airspace and stability works. These activities allow ongoing safe operation of the landfill and allow it to provide ongoing disposal services to the community. The financial impact of this business plan results in a lower fee than was outlined in the approved AMP and therefore has benefit financially to the region.

Degree of significance and level of engagement

The NTRLBU plans result in a reduce landfill fee but require an increase in capital expenditure. The capital expenditure has been spread over two years to reduce the impact on NTRLBUs owners. While this business plan is significant to NTRLBU it is not considered significant to the Councils.

Climate Impact

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

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

5.6.1 Relevant Areas of responsibility:

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

5.6.2 Delegations:

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

Item 10: Nelson Tasman Regional Landfill Business Unit Quarterly Update Report

Nelson Tasman Regional Landfill Business Unit

10 December 2021

Report Title: Nelson Tasman Regional Landfill Business Unit Quarterly Update Report

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

Report Number: R26377

1. Purpose of Report

1.1 This report is a quarterly update by the General Manager (GM) on activities undertaken to 30 September 2021 by 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 Quarterly Update Report (R26377)

3. Background

3.1 Operations are generally running well

3.2 Three safety incidents have occurred since the last NTRLBU Board meeting.

3.3 Stormwater pond 3 has been completed, and stormwater pond 1 and the eastern dirty water drains are now being constructed.

3.4 Waste volumes remain at a high level, with the NTRLBU finances to the end of October 2021 resulting in surplus of $571,000 due to the higher than budgeted waste volumes.

3.5 NTRLBU has been working on improving gas capture and destruction at both Eves Valley and York Valley landfills. While this work has been proceeding, it is moving at a slower rate than desired. If NTRLBU cannot achieve the assumed reductions in the budgeted timeframe then the NTRLBU could be exposed to significantly higher ETS costs.

4. Health and Safety

4.1 Three significant incidents have occurred at the York Valley Landfill (YVL) during the period.

4.2 Two incidents involved reversing landfill machinery impacting other machines on the landfill face. Machinery damage resulted from both events but there was no harm to personnel.

4.3 An additional incident involved a landfill staff member being struck by falling debris from a transport container. Whilst no injury to the staff member occurred, this incident was like an incident approximately 12 months ago.

4.4 Remedial actions for the debris incident have not been effectively implemented from this earlier incident and the GM has taken action to increase focus on H&S matter at the landfill site.

4.5 An external health and safety (H&S) review has been commissioned on the O&M contract to review the contractor’s systems and the check that the staff are using the systems as required. The output from this review is not yet available.

4.6 The GM has personally attended Site Toolbox meetings, Incident investigations and has spoken extensively to site staff, the contractor’s management, and others within the industry.

4.7 Following the investigations, the contractor has committed to immediately focus on improving site H&S leadership.

4.8 The number of small battery fire incidents at YVL has remained reasonably constant with fire management procedures being effective.

4.9 The thermal imaging camera is installed and is in use now. The system is set to respond to thermal images above 100 degrees that occur after hours.

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 The construction of SRP3 has been completed

5.2.2 The design of SRP1 and the upgraded eastern side stormwater drains has been completed, and construction has started.

5.2.3 The new wheel wash construction has commenced.

5.2.4 A “global” earthwork consent for the site has been submitted. 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.

5.4 NTRLBU has engaged an external consultant to assist with progressing this work. It is expected that this will be tabled at the first NTRLBU meeting in 2022.

5.5 The Landfill airspace, leachate resilience and landfill stability review has reached a recommended approach. This work is the subject of a separate report on this NTRLBU agenda. Preparatory works have been commenced using funding available within 2021/22 business plan for the buttress and access road alignment.

5.6 A range of actions have been implemented for the Eves Valley Landfill leachate system. These include a review of the discharge pumping and pipework system, increase leachate storage using tanks acquired from the deconstruction of the Turners and Growers site in Stoke.

5.7 NTRLBU have also constructed the front face cap on the previous landfill lift over the last two months.

5.8 The GM has begun preliminary discussions with a service provider to begin the review and alignment of the NTRLBU and NRSBU governance frameworks. This work has however not been commenced due to workload concerns.

6. Odour Management

6.1 No odour notifications were received this period.

7. Litter Management

7.1 Additional wind bunds have been constructed on York Valley site to reduce litter movement.

7.2 The mobile catch fences are working effectively, additional fences have been ordered and these are being constructed at around three per month.

Photo of York Valley mobile litter catch fences.

8. Emission management

8.1 The new York Valley enclosed flare has been installed and is now operational. The flare is combusting around 40,000m3 of landfill gas per week.

8.2 The gas piping system has been installed at Eves Valley. The old York Valley flare has been moved to Eves Valley and is being installed. NTRLBU has applied and received an exemption for the consent for the installation of the flare from Tasman District Council.

8.3 The ETS unit price has been increasing now $65 per tonne CO2 This is significantly higher than projected (NTRLBU AMP assumed an CO2 unit price of 42.50 per NZU for 2022/2023, $47.50 per NZU for 2023/2024 and $50 per NZU from 2024/2025 onwards.) It is expected that ETS credits will continue to rise in price over the next three years.

8.4 Due to the NTRLBU hedging arrangements, this change in price will not result in significant budget issues for the 2021/22 year, However NTRLBU could be exposed to a significant financial risk if the UEF assumed in the NTRLBU AMP cannot be achieved.

8.5 NTRLBU has purchased ETS credits to the maximum allowance under the Treasury policy. This purchase gives price certainty for the next business planning period.

8.6 The data for the next UEF application is being prepared at present. A new UEF application will be applied for in January 2022.

9. Landfill life

9.1 A separate item is included in the NTRLBU agenda of the Landfill stability, resilience, and airspace.

10. Waste Minimisation

10.1 For Nelson City the LDL contributed to the following activities.

· Nelson Waste Recovery Centre operation

· Greenwaste diversion

· Kerbside recycling collection

· Waste minimisation activities as described below

10.1.1 A range of waste minimisation activities were undertaken through the Rethink Waste|Whakarohia programme in 2020-21, in line with the JWMMP Goals and Objectives, despite delays caused by Covid19.

10.1.2 The priority focus was on supporting a culture where people choose not to create waste, through developing tools such as waste minimisation grants, building a repair and reuse culture, and support for reducing food waste and construction & demolition waste.

10.1.3 Ongoing activities included support for kerbside recycling and development of a collaborative project with the NTRLBU and TDC to keep batteries out of the Waste Recovery Centre, Materials Recovery Facility, and the landfill.

10.1.4 Regular activities such as Secondhand Sunday, the further development of the Rethink Waste Whakaarohia campaign and newsletter were ongoing.

10.1.5 Support for waste diversion through use of subsidies also continued, alongside support for the wider Council-supported Enviroschools programme to include a focus on avoiding waste.

10.1.6 Council walking the talk was also an important focus, with waste minimisation at Council events being supported to establish consistent processes, alongside the Trafalgar Centre flagship event waste minimisation project, which has also been linked to supporting wider event waste minimisation programmes.

10.1.7 Collaboration with TDC on a range of projects continued throughout the year. This work programme has established a platform for further extension of waste avoidance and minimisation activities supporting our community in 2021/22.

10.2 Tasman District Council Waste Minimisation activities.

10.2.1 In Tasman District the LDL is used to offset the operating costs of the five Resource Recovery Centres in the district and to manage hazardous waste and illegal dumping. The LDL is used to fund these activities because the cost of landfill disposal increased significantly for Tasman District Council when the NTRLBU was established.

10.2.2 Waste minimisation activities in Tasman District are funded by targeted rates and central government disposal levy income (approximately $3.1m per annum). Many of these projects are delivered jointly or in coordination with Nelson City Council.

10.3 NTRLBU waste minimisation Activities.

10.3.1 NTRLBU has undertaken additional separation works at the landfill. This unfortunately has not yet identified a method that is successful, however this is considered on ongoing work in progress.

10.3.2 NTRLBU has had two school parties (Appleby School and Nelson College prep students) visit the landfill. Each party had 10 children in the visit. These visits have been well received, and the GM would like to give thanks to the landfill supervisor Mike Kennedy and to Kim Keown from DS Projects for their facilitation of these visits.

11. Finances

Landfill volumes remain high and have exceeded expected landfill volumes for the year to date.

11.1 Waste mass for the 2020/2021 year was 78,069 tonnes. Waste mass for 2021/22 have been consistent with the mass received during 2020/21. NTRLBU assumed a waste mass of 72,000 tonnes for Business Planning purposes.

11.2 Income Account for the period to 31st October 2021.

11.3 The finances show an overall surplus for the year to 31 October 2021 is $571,356.

11.4 This increased income has come principally from the increased volume of wastes being received compared to the projected volumes used to generate the budget.

11.5 Expenses are up compared to budget for a range of items, which is expected due to higher levy and ETS costs associated with higher waste tonnage.

11.6 One item that is particularly high for the year to date is consultancy costs. These relate to work on operational consent applications, secondments for activity management support, and support for other items such as the Eves Valley leachate system investigations.

11.7 Balance Sheet as of 30 October 2021

11.8 A detailed carry over report has been prepared to outline carryovers from the 2021/2022 financial year. This report is a separate report on the NTRLBU Agenda.

12. NTRLBU Business Plan 2022/23

12.1 The NTRLBU 2022/23 Business Plan draft has been prepared and is a separate report on this meeting’s agenda. This Business Plan is later than required by the Terms of Reference but was delayed with the NTRLBU Board approval.

12.2 Several issues complicated the preparation of the Business Plan including:

· COVID- 19 Level 4 lock down occurred during the preparation of the Business Plan which led to delays in the preparation.

· Regional Services staffing capacity has constrained the time available for the preparation of the Business Plan.

· Uncertainty regarding the requirements of the landfill stability, leachate resilience, and airspace report.

13. NTRLBU Resourcing

13.1 Recruiting for the Regional Service Activity Engineer occurred during this period but NTRLBU was unable to engage an appropriate staff member.

13.2 The resignation and difficulty for filling the Activity Engineer role further constrains the resourcing capacity for the Regional Services staff.

13.3 An external consultant has been seconded to assist NTRLBU in a part time capacity while a new employee is sought, however the Acting Activity Engineer is also changing employer and work is being undertaken to develop a contract with her new employer to confirm that NTRLBU can maintain access to her skills on a part time basis

13.4 NCC and TDC have been recruiting staff for activity management roles and have not been successful.

13.5 A business case is being prepared to review the structure of NTRLBU to alter the makeup of the Regional Service staff this business case will be submitted to NCC and TDC managers for review in the new year.

13.6 A 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.

14. Conclusion

14.1 NTRLBU operations have been running reasonably smoothly, albeit concerns are held regarding health and safety performance. External Health and safety review will be undertaken by NTRLBU to identify issues and support the implementation of an improvement plan.

14.2 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.

14.3 The new flare for York Valley has been installed and is now combusting gas. This will support the lowering of the York Valley greenhouse gas emissions.

14.4 Delivery of the programme of works has been constrained by staff capacity and will become further constrained until additional staff are engaged.

14.5 The NTRLBU should expect delays in the delivery of some work items due to insufficient staff capacity, and consultancy costs will continue to remain above budget due to external support being required.

Author: Nathan Clarke, General Manager Regional Sewerage and Landfill

Attachments

Nil

Important considerations for decision making

Fit with Purpose of Local Government

Consistency with Community Outcomes and Council Policy

The NTRLBU Business Plan feed into the NCC and TDC Annual Plans and the business plan has been prepared based on the NTRLBU 2021 -2031 Activity Management Plan.

Risk

This report the NTRLBU board to review performance of the business unit. The report outlines areas of risk, and set out measures to mitigate risk.

Financial impact

This report does not result in any financial impact. The Report outlines the financial performance against the business plan.

Degree of significance and level of engagement

This is a monitoring repot that has no decisions and therefore has no significance to the NCC and TDC.

Climate Impact

There is no impact on climate change as a result of this report. This report discusses actions being undertaken in regard to climate change.

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

5.6.1 Relevant Areas of responsibility:

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

5.6.2 Delegations:

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

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

Nelson Tasman Regional Landfill Business Unit

Areas of Responsibility:

Powers to Decide:

Power to Recommend to Councils:

Quorum:

Procedure: