Agenda of Nelson Tasman Regional Landfill Business Unit

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 - 27 May 2022	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)(b)(ii) To protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

Nelson Tasman Regional Landfill Business Unit Minutes - 27 May 2022

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 via Zoom on Friday 27 May 2022, commencing at 9.35a.m.

Present: Nelson City Councillor J Edgar (Chairperson), Nelson City Councillor M Courtney, S Bryant, Tasman District Councillor T Walker (Deputy Chairperson) and Iwi Representative A Stephens

In Attendance: Group Manager Infrastructure (A Louverdis), General Manager Regional Services (N Clarke), Tasman District Councillor M Schruer, Governance Adviser (T Kruger) and Assistant Governance Adviser (A Bryce-Neumann)

Apologies : Nil

1. Apologies

2. Confirmation of Order of Business

There was no change to 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 March 2022

Document number M19362, agenda pages 6 - 10 refer.

Resolved RLBU/2022/007

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 March 2022, as a true and correct record.

Edgar/Bryant Carried

6. Chairperson's Report

There was no chairperson’s report.

7. Nelson Tasman Regional Landfill Business Unit General Managers Update Report.

Document number R26894, agenda pages 10 - 20 refer.

General Manager Regional Services, Nathan Clarke, presented the report and answered questions on the landfill, geotechnical, disposing of batteries, consent and Health and Safety.

Mr Clarke advised that he is working on the Joint Waste Minimisation Waste plan for Tasman District Council and Nelson City Council. The updated report will be presented where the year ended and will present a recommendation.

Mr Clarke advised that they were looking to employ full time Waste Management Officer for Tasman District Council to work alongside Nelson City Council Group Managers. General Manager Infrastructure, Alec Louverdis confirmed that a report will be brought back to the committees outlining the timeline.

Resolved RLBU/2022/008

That the Nelson Tasman Regional Landfill Business Unit

1. Receives the Nelson Tasman Regional Landfill Business Unit General Managers Update Report. (R26894); and

2. Notes that a report to approve projected carryovers from 2021/22 to 2022/23 will be presented to the first Nelson Tasman Regional Landfill Business Unit Board Meeting in 2022/23.

Bryant/Courtney Carried

8. Exclusion of the Public

Resolved RLBU/2022/009

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:

Walker/Stephens 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 March 2022	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)(b)(ii) To protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

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 March 2022

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)(b)(ii)

To protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

· Section 7(2)(i)

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

Nelson Tasman Regional Landfill Business Unit Gas Management Update report

Section 48(1)(a)

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

The withholding of the information is necessary:

· Section 7(2)(b)(ii)

The meeting went into confidential session at 10.24a.m. and resumed in public session at 11.02a.m.

9. Restatements

It was resolved while the public was excluded:

1	CONFIDENTIAL: Nelson Tasman Regional Landfill Business Unit Gas Management Update report
	Agrees report (R26896) and decision remain in confidential at this time.

There being no further business the meeting ended at 11.03a.m.

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

Resolved

Item 6: Nelson Tasman Regional Landfill Business Unit General Manager Update report.

Nelson Tasman Regional Landfill Business Unit

15 July 2022

Report Title: Nelson Tasman Regional Landfill Business Unit General Manager Update report.

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

Report Number: R27017

1. Purpose of Report

1.1 This report is an update by the General Manager (GM) on activities and finances to 31 May 2022, 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 General Manager Update report. (R27017).

3. Background

3.1 There have been no significant safety incidents since the last NTRLBU Board meeting.

3.2 Operations are generally running well, the NTRLBU compactor is now onsite and available for use when the contractor’s compactor suffers breakdown.

3.3 The stormwater pond 3 permanent flocculation system has been installed and is in operation. Stormwater pond (SRP 1) is now usable. Some completion works are required when the weather dries enough to allow access.

3.4 Earthworks for the buttress and airspace excavation works have been tailed down due to winter conditions to reduce costs related to wet weather.

3.5 The new weighbridge mechanical frame for the Eves Valley weighbridge has arrived on site. The installation of this system is programmed for inclusion prior to the end of 2022.

3.6 The NTRLBU finances to the end of December 2021 show a surplus of $1.84 Million for the year to 31st May 2022 due to the higher than budgeted waste volumes, and lower than expected Unique Emission Factor.

3.7 The carryover report has not been included in this report due to the end of year data not being available. The carryover report will be included in the September 2022 NTRLBU Board Agenda.

4. Health and Safety

4.1 No significant incidents have occurred at the York Valley Landfill (YVL) during the period.

4.2 There were three fire incidents at the landfill, one from a vehicle exhaust and two from lithium ion batteries. All fires were managed in accordance with the response procedure.

4.3 NTRLBU and the operations contractor discussed the exhaust incident. The discussion identified that there have been three fire incidents involving exhaust pipes / exhaust emissions management systems igniting material at the landfill over the last three years. Two of these incidents relate to new trucks with emission management systems.

4.4 The exhaust temperature increases to around 1000 degrees to oxidise soot built up within the exhaust system. This temperature is above the ignition temperature of many materials. If the exhaust contacts any combustible material, it can set it on fire. NTRLBU are reviewing procedures at the landfill tip face (focussing on more frequent removal of loose combustible material from the truck discharge zones) and are considering whether new vehicles to the landfill should be inspected for the exhaust position to reduce the possibility of ignition events. In the interim officers have been in contact with landfill users known to operate trucks with the exhaust burn out function. They have been advised that it is not acceptable for the trucks to operate this function on the landfill tip face.

4.5 The fire risk management plan is being prepared to document the required preparatory works to reduce the risk of fire incidents, the readiness works to facilitate firefighting should a fire occur, the response procedures to fight a fire should one occur, and the actions that might be necessary to allow effective recovery after an event.

4.6 Investigations and trials undertaken to reduce risks from vehicle doors have resulted in a method for opening the doors that appears to manage the risks. This is a revised detachable rope tether. The tether allows the staff to walk around the vehicle outside of the area where items could fall. This approach appears to have resolved the issue with the single opening bin doors, but there is still a need to manage the double door containers. This work remains ongoing.

4.7 There were four incidents logged in the incident register for May 2022

5. Landfill Compactor Issues

5.1 The primary compactor at the landfill was sent for repairs and has returned to site. Since returning it has again had issues with the fire suppression system and has broken a drive axle. The NTRLBU compactor has been hired to the contractor for one week while the primary compactor has been out of service.

5.2 The primary compactor was unavailable for 51 hours in April. During May the contractor had an additional compactor onsite and there were no periods where the contractor did not have a compactor available.

6. NTRLBU Activities

6.1 It has continued to be busy for NTRLBU staff. A range of projects have needed to be managed in addition to the normal operations.

7. Landfill Gas management

7.1 Due diligence on the hospital boiler and gas management system has been ongoing, with WSP working on this on NTRLBU’s behalf. This project is proceeding well, and it is expected that it will come to completion in July or August 2022.

8. Deed of Agreement and Terms of Reference Review

8.1 The review and alignment of the NTRLBU and NRSBU governance frameworks has been undertaken by Duncan Cotterill. A draft report has been prepared along with an amended NTRLBU Deed of Agreement and a Revised NTRLBU Terms of Reference. The review identified that it was not worth changing the NTRSBU Memorandum of Understanding due to the upcoming three waters changes. Amendments we made to the NTRLBU Deed of Agreement and the NTRLBU Terms of Reference to remove conflicts between the two documents and to add clarity to the processes and timing of actions required to meet the Councils planning and approvals processes. A report has been drafted however due to timing issues this report is not available for this meeting and will be on the September NTRLBU meeting agenda.

9. Airspace, Leachate, and Stability Upgrade

9.1 The airspace works are underway with earthworks machinery onsite. The works have moved a significant amount of material and some airspace gains have been made. This work has now been slowed down to avoid wet weather claims during winter.

9.2 Geotechnical stabilisation works have been implemented along the southern boundary of the landfill to ensure that the earthworks do not affect the stability of neighbouring property. This work involved drilling 98 five metre deep holes and installing timber posts surrounded by concrete. This project has been completed. Photos of the works is included below for interest. During recent rains some slumping of the excavated area occurred and these stabilisation work protected neighbouring properties from subsidence as designed.

Figure 1 – Geotechnical stabilisation works being implemented above the airspace excavation works

9.3 The design of the upper leachate improvements has been undertaken and cost estimates are being sought from contractors for the works based on the draft design.

9.4 The first stages of the buttress geotechnical stability assessments have been completed and the buttress earthworks design for the upper buttress area has been completed. Unfortunately, the upper buttress was not able to be completed prior to the wet winter weather setting in.

9.5 The earthworks contractor will begin the top level of the buttress construction in areas above the upper leachate drains once the weather dries out after winter.

10. Odour Management

10.1 One neighbour contacted the NTRLBU regarding an odour observation during this period.

10.2 The GM has initiated routine odour assessments by the landfill operators, the GM, and an independent odour assessor. These assessments involve the person driving to key locations alongside the landfill to assess whether odour from the landfill can be detected, how intense and unpleasant this odour is. NTRLBU is taking odour seriously and wants to have clear information on what odours there are, when they occur, where they occur, so that action can be taken to mitigate them.

10.3 At this time no landfill odours have been observed outside the landfill by the operators or the GM during these visits.

10.4 These visits also include noise observations to identify whether there is noise from the landfill operations.

11. Stormwater Management

11.1 SRP3 is working well with the coagulant significantly improving water quality leaving the site. The following photo 2 shows the stormwater prior to the pond and the dosing system, and photo 3 shows the clarity of the treated stormwater leaving the site during a storm event.

Figure 2 – Showing the dirty stormwater and dosing system

Figure 3 – Stormwater following treatment prior to discharge to York Stream.

11.2 The construction of SRP1 and the upgraded eastern side stormwater drains is nearing completion. The pond is now in use, and some final completion works will be completed once the ground dries out.

11.3 The design of the western side dirty water drain has been reviewed and an alternative design has been developed that allows the stormwater to pass back to the eastern side of the landfill. NTRLBU has installed temporary flexible pipes on the western side of the landfill to prevent scouring during rainfall until the western side dirty water drains can be implemented. Observations during the last rainfall event have shown these to be working effectively.

11.4 The new wheel wash construction has been completed and is in use. The wheel wash has significantly reduced the deposition of dirt on the access road and will prevent dirt reaching public roads.

12. Litter Management

12.1 There was one litter complaint during this period.

12.2 The new litter catch fences are in use and are significantly reducing the amount of litter being blown around in the landfill, however further improvements are ongoing and additional catch fences will be required.

12.3 Now that the palisade wall to improve the geotechnical stability has been installed, NTRLBU will begin the implementation of the site exterior catchfence.

13. Emission Management

13.1 The Eves Valley flare is running, and the flow meter and gas analyser are now installed and operational.

13.2 The design of the additional gas wells at the York Valley Landfill and the new gas collection ring main have been received. The drilling rig for the installation of the wells was due to start drilling onsite toward the end of May however the contractor’s staff had covid and this has now been delayed to September.

13.3 NTRLBU has ordered all the new gas pipe for the ring main, and this has now been supplied to site. Pipe welding of the pipe strings has commenced.

14. Emissions Trading Scheme Position

14.1 The ETS unit price has been increasing and is now above $76 per tonne CO2.

14.2 This is significantly higher than projected (NTRLBU AMP assumed a 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)

14.3 It is expected that ETS credits will continue to rise in price over the next three years.

14.4 Due to the NTRLBU hedging arrangements, this change in price will not result in budget issues for the 2021/22 year.

14.5 NTRLBU purchased ETS credits to the maximum allowance under the Treasury Policy based on an assumed UEF value.

14.6 Following a review of the UEF for 2021 the new UEF for York Valley Landfill is 0.518.

14.7 Current NZU holding and movements

Units on hand on 30 June 2021 140,909

Purchased October 21 @ $65.40 20,000

Purchased January 2022 @ $69.25 10,000

Purchased February 2022 @ $76.50 10,000

Units on hand February 2022 180,900

Units to surrender for 2021 @ UEF 0.518 40,483

Units on hand 30 March 2022 140,166

14.8 Policy limit - 106,902

14.9 The current holding is 33,564 more units than our policy provides for due to the UEF of 0.518 achieved for 2021 being significantly less than anticipated when purchasing units. This is based on actuals to 30 March 2022 and budget volumes for 2022 and beyond. There is a small risk that volumes of waste received will continue to exceed budget. This risk is likely to be covered by the units held in excess of the policy.

14.10 There is significant demand for units from the market and little supply resulting in the market price continuing to rise.

14.11 The second government auction for 2022 was on the 15 June 2022. There were more bids than the base allocation resulting in all the units available for Cost Containment Reserve being sold. The settlement price was $76 per unit.

14.12 The NTRLBU propose to continue maintaining the units beyond the current policy as a hedge against the risks of volumes of waste received, a change in the UEF and the predicted price escalation.

15. Waste Minimisation

15.1 There are three primary activities going on with waste minimisation for NTRLBU at present.

15.2 Battery diversion and recycling.

15.2.1 The number of small battery fire incidents at York Valley has remained lower over the last two months.

15.2.2 The cost of battery disposal is now expected to be in the order of $40,000. This funding will allow the region to maintain a focus on this, and hopefully this will further reduce battery fires and the risk of major fires occurring at the landfill.

15.3 NTRLBU waste minimisation activities.

15.3.1 NTRLBU is working with NCC and TDC on the review of the Joint Waste Minimisation and Management Plan.

15.3.2 NTRLBU has continued to investigate additional separation works at the landfill. This unfortunately has still not identified a method that is successful and economic. This work is considered work in progress and will continue.

15.3.3 NTRLBU has begun looking at options for waste treatment and energy production from wastes, that will result in reduced airspace consumption and energy production. This is aimed at identifying whether a small system is available to treat Chrome Copper Arsenate contaminated saw dust is available. This is a work in progress.

15.4 2022 York Valley SWAP study

15.4.1 The NTRLBU has commissioned the 2022 Solid Waste Analysis Protocol (SWAP) study for wastes being received at the York Valley landfill. The SWAP will assist NCC and TDC with the waste audit required for the JWMMP and will also show any trends or changes in waste composition. The physical assessment has been completed, with the study report expected in mid-July.

16. Landfill Waste Volumes

16.1 Landfill volumes remain high and have exceeded expected landfill volumes for the year to date. ( refer to Figure 4 Below)

Figure 4 – Waste volume and composition for 2021/2022

16.2 Total waste tonnage for the 2021/22 financial year was 81,292 tonnes. This compares to 78,069 tonnes for the 2020/21 FY.

17. NTRLBU Finances

17.1 Income Account for the period to 31st March 2022.

17.2 The finances show an overall surplus for the year to 31 May 2022 is $1,842,756.

17.3 This increased income has come from the increased volume of wastes being received compared to the projected volumes used to generate the budget and from the significantly lower UEF factor achieved for the 2021 year than assumed in the Business Plan.

17.4 Expenses are up compared to budget for a range of items, which is expected due to higher volume of wastes, and consequently the higher Waste Disposal Levy and operational costs.

17.5 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. While these costs are higher than budget, they are more than compensated by the additional revenue and lower ETS costs.

17.6 Balance Sheet as of 31 May 2022

18. Carryover

18.1 NTRLBU has been unable to prepare the carryover report for this agenda. The end of year financial data is not available yet. The carry over report will be added to the September 2022 NTRLBU meeting agenda.

19. NTRLBU Resourcing

19.1 A business case is being prepared to review the structure of NTRLBU to alter the makeup of the Regional Service staff. No further progress has been made since the last meeting.

20. Conclusion

20.1 NTRLBU operations have been running reasonably smoothly and the issues with the availability of the compaction machinery onsite have now been overcome with the compactor owned by NTRLBU now being available for use.

20.2 Battery diversion works appear to continue reducing the frequency of fires at the landfill.

20.3 The stormwater system is now achieving effective treatment prior to discharge to York Stream.

20.4 Work has started on the airspace and landfill stability work, but this will slow down over the wet winter period.

20.5 There have been no significant safety incidents since the last NTRLBU Board meeting, and improvement to vehicle management has been implemented.

Attachments

Nil

Nelson Tasman Regional Landfill Business Unit

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