Agenda of Nelson Regional Sewerage Business Unit

Item 7: 2021/22 Capital/Renewals Expenditure and Carryover Report

Nelson Regional Sewerage Business Unit

16 September 2022

Report Title: 2021/22 Capital/Renewals Expenditure and Carryover Report

Report Author: Brad Nixon - Operations Manager Regional Services

Report Number: R26870

1. Purpose of Report

1.1 To consider and approve the 2021/22 financial year capital and renewals expenditure, including the carryover requirements to 2022/23.

2. Summary

2.1 A significant amount of renewal and capital upgrading work has commenced but has not been completed during the 2021/22 financial year. This work is necessary, and it is therefore important to carry over unspent capital from 2021/22 to 2022/23 to allow this work to be undertaken.

3. Recommendation

That the Nelson Regional Sewerage Business Unit

1. Receives the report 2021/22 Capital/Renewals Expenditure and Carryover Report (R26870); and

2. Approves the carryover of capital ($3.363M) and Renewals budgets ($2.5M) from 2021/22 financial year to the 2022/23 financial year, to ensure continuation of urgent and planned works.

4. Background

4.1 NRSBU has continued a challenging renewals and capital programme during the 2021/22 financial year. Good progress has been made on key capital projects, and capital delivery has improved compared to the 2020/21 financial year.

4.2 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. Engagement by the Nelson Regional Sewerage Scheme (NRSS) operations and maintenance Contractor of a dedicated NRSS Projects Manager has greatly assisted with project initiation.

4.3 Several projects have been delayed due to resource consenting delays. Many of these issues would have been eliminated if the Bell Island site was designated as a wastewater treatment site under the Tasman Regional Management Plan. Officers note that work to designate the site has commenced.

4.4 COVID-19 continues to have an impact on project deliveries, with lockdowns, material shortages and high contractor workload all affecting progress.

4.5 The following table details overall renewals and capital expenditure to the end of June 2022, along with subsequent carryover.

	Full Budget 2021/22	Total Spend 2021/22	Carryover
Renewals
Total Renewals	$ 3,242,604	$ 764,334	$ 2,499,815
Capital
Regional Pipeline	$ 6,400,899	$ 3,761,391	$ 2,639,509
Other	$ 4,402,356	$ 3,678,870	$ 723,835
Total Capital	$ 10,803,255	$ 7,440,262	$ 3,363,343

For comparison NRSBU carried over $5.98M of capital funds from a budget of $11.60M at the end of the 2020/21 FY. As a percentage of budget this is an improvement from 51.5% in 2020/21 to 31.1% this year.

4.6 The table below details renewals and capital works with carryover values above $50k

	Full Budget 2021/22	Total Spend 2021/22	Carryover
Renewals
Renewals: Buildings	$222,251	$9,816	$212,436
Renewal Inlet	$239,182	$47,651	$191,531
Renewal: Sludge Storage	$446,817	$89,780	$357,037
Renewal: Pump Stations & Rising Mains	$391,992	$175,965	$216,027
Rabbit Island Renewals	$64,881	$3,468	$61,413
Carryover - Aerators	$1,415,169	$0	$1,415,169
Capital
Regional Pipeline Duplication	$6,400,899	$3,761,391	$2,639,509
Pump Station Overflow Screens	$563,534	$25,423	$538,112
ATAD Odour Upgrade	$699,095	$452,850	$246,245
Sludge Management in Ponds at Bell	$499,196	$807,659	-$308,463
Operator Building	$284,287	$70,517	$213,770
Pump Station Flooding Resilience	$213,391	$127,108	$86,283
Sludge Storage Tanks	$763,715	$7,316	$756,399
Rabbit Island Tank Covers/Odour	$274,263	$0	$274263
Biosolids Application Consent	$19,185	$217,014	-$197,829
Aberrational Discharge Consent (EMP)	-$52,611	$54,363	-$106,974

4.7 Specifics of proposed renewal carryovers are as follows:

4.7.1 Buildings: Work on the operator facility/workshop building has stalled this financial year. Design work completed during 2021 identified that the building site is subject to the Coastal Environment Area requirements, and therefore a resource consent is required to proceed with construction. A consent was applied for in early 2022, however this is still yet to be assessed by Tasman District Council.

4.7.2 Inlet: Refurbishment works to the concrete inflow structure have proceeded to design phase, following optioneering. Design work has been completed for repairs to the central flow structure, with a stainless steel capping the preferred option. Installation of this replacement capping, along with concrete corrosion remediation is anticipated to be completed over late summer to coincide with the typical reduced inflows.

4.7.3 Sludge Storage: The refurbishment of the sludge storage tank was cancelled in lieu of a new, dual tank, system. This allows for system redundancy, which will allow future maintenance works to be completed on the new tanks, greatly extending their life. Design is completed, with geotechnical investigations done. This capital project has now gone to market for procurement. Requirements to gain a resource consent for these works have contributed to the delayed commencement of physical works. Works are anticipated to be completed by the end of the 2022/23 financial year.

4.7.4 Pump Stations and Rising Mains: A number of significant renewals remain uncompleted for the NRSS pump stations, including replacement of a storm pump at Beach Rd pumpstation, pump and drive replacements at Whakatu pump station, pump and drive replacements at Airport pump station, and a pump pedestal replacement at Songer St pumpstation. Level control systems across all pump stations require replacement, along with lighting systems. Officers have been reviewing options for these packages of work, to ensure outcomes align with future plans. Work is expected to be substantially completed across all packages during the 2022/23 financial year.

4.7.5 Rabbit Island: Replacement of flow control systems and flow meters was scheduled for the 2021/22 year, however required the connection of improved data systems at the Biosolids Application Facility (BAF). This connection work is now completed, with the replacement of flow control and metering scheduled for completion during 2022/23.

4.7.6 Aerators: There is a significant renewals project for the aeration basin with options review work commencing during 2021/22. Funding was held back this year to allow staff to confirm the options presented, with the intention to complete a major overhaul – resulting in greater flexibility, and significantly improved power efficiency for the aeration basin.

4.8 Specifics of proposed capital carryovers are as follows:

4.8.1 Regional pipeline duplication: Work is ongoing to the pipeline duplication project.

· Section 9 (Turners & Growers) and section 11 (SH6 to Martins Point) were completed during the year.

· Design of Section 8 (Saxton Road) is complete with contractor procurement underway. Works are scheduled to commence in spring this year, with completion programmed for early 2023.

· Investigation works have been completed for the remaining sections of the duplication project. A Registration Of Interest (ROI) is currently underway to allow staff to understand the market appetite and availability to complete the rehabilitation of pipeline from Beach Rd to SH6, install of new pipe from SH6 to Saxton Rd, along with completion of connections at Beach Rd and Saxton pumpstations and Martins Point

· Officers note that Tasman District Council have expressed desire to complete the duplication works to eliminate the occurrence of overflows at Beach Rd as a result of inflows exceeding the pumpstation capacity. Subject to procurement and market availability there is a possibility the final year of works on the duplication project could be brought forward to the 2023/24 financial year.

4.8.2 Pump station overflow screens: Work continues on these installations, with detailed design identifying a number of issues that required consideration prior to commencement of construction.

· The Songer St screen install is well progressed, with structural changes to the old wet well now completed. Final commissioning is anticipated late in 2022

· Whakatu has ongoing design issues relating to installing an overflow pipeline. A number of alternatives were explored to allow flows to transverse the State Highway, including re-use of sections of the old sewer rising main, however these have all been deemed un-feasible following investigations of the condition of old assets. Final design resolution is now expected this calendar year.

· Officers note that temporary works have been completed to ensure that the overflow discharge from all sites meets the consent requirements.

4.8.3 ATAD Odour Upgrade: Works on the odour treatment system upgrade on the ATADs and Biosolids tanks has progressed well, with the new ammonia scrubber (repurposed DAF saturator tank) installed onsite, the new duplicate bark biofilter constructed, and pipework construction and installation underway. Work is programmed for completion during 2022.

4.8.4 Sludge Management: Pond desludging has been completed in pond F2, with construction of the bund area, and bottom row of dewatering bags installed. The dredge is now progressing to pond F1, with final top up of the bottom row of bags prior to commencing on the top layer. Work to desludge the facultative ponds was required by the new Bell Island resource consents, however the initial capital budgets were insufficient to complete the required scope of desludging.

Officers are ensuring that the work being completed represents value for money and have engaged the dredging contractor on a cost reimbursable basis through the Operations & Maintenance contract. This has allowed the local contractor to work around tides and weather effectively and combined with the focus on efficiency has seen work completed to date done at around 50% of the normal tendered market dredging rate.

4.8.5 Operator Building: See comments in 4.7.1

4.8.6 Pump Station Flooding Resilience: New wet well covers remain to be fitted to the Airport and Beach Rd pumpstations.

4.8.7 Sludge Storage Tanks: See 4.7.3. This funding also includes refurbishment of the existing biosolids tank, and construction of a new duplicate tank and mixing/transfer system. The sludge and biosolids tank project also includes replacing the existing submersible mixer systems with an externally pumped, nozzle mixing system which should improve in tank mixing, and reduce solids settleability. Additional work has also been undertaken to allow for future inclusion of the existing, unused, heat exchanger in the biosolids pumping system, to reduce the temperature of pumped biosolids. This is in preparation for possible replacement of the aging biosolids transfer pipe to Rabbit Island with an HDPE pipe. Work on these upgrades has been delayed due to requirements to gain resource consent for the works. Geotechnical investigations have been completed, and contractor procurement is underway.

4.8.8 Rabbit Island Tank Covers and Odour: concept design work has commenced following a review of options. The concept revolves around individual tank covers, with frames supporting lightweight covers. This work is programmed for completion in the 2022/23 FY.

4.8.9 Biosolids Application Consent: The application for a new resource consent to continue application of biosolids to Moturoa Rabbit Island has proceeded to a hearing. There remains significant work yet to be completed, and costs to gain the consent have exceeded the indicative budget allocated.

4.8.10 Aberrational Discharge Consent: The final stage of baseline monitoring for the Environmental Management Plan for the consent has been completed during 2021/22. This completes the capital work related to this consent. Costs have exceeded the indicative budget allocated.

5. Options

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

5.2 Officers support Option 2 – Approving the carryover.

Option 1: Do not approve the carryover
Advantages	· Less money will be spent, resulting in lower financing costs to contributors. · Less stress on Regional Service staff due to fewer capital and renewal projects
Risks and Disadvantages	· The capital upgrade works will not be undertaken resulting in environmental and performance issues. · More stress on Regional Service staff because of increased maintenance requirements, along with managing environmental and performance issues
Option 2: Approve the carryover
Advantages	· The capital projects will be able to continue · Upgrades will be possible to reduce environmental and performance issues
Risks and Disadvantages	· Regional services staff will be stressed delivering the capital projects (although assistance is now available from Contractors new Treatment Projects Manager) · More capital money will be spent, which will increase the financing costs to contributors.

6. Conclusion

6.1 It is recommended that $2.500M of renewal and $3.363M of capital funds be carried forward into 2022/23. Of these figures $4.21M has already been committed either via standalone projects or the O&M contract.

6.2 Expenditure of carryover funds is generally programmed for completion in 2022/23.

Attachments

Nil

Important considerations for decision making

Fit with Purpose of Local Government

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

Consistency with Community Outcomes and Council Policy

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

Risk

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

Financial impact

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

Degree of significance and level of engagement

The NRSBU is a Joint Committee of the two Councils and its activities are included in the Long-term Plans and Annual Plans of each Council. Consultation is undertaken by both Councils in the preparation and adoption of these plans

Climate Impact

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

Inclusion of Māori in the decision making process

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

Delegations

The Councils are agreed that the responsibility for all management and administrative matters associated with the NRSBU operation shall be with the Board, and in particular the Board shall without the need to seek any further authority from the Councils:

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

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

Do all other things, other than those things explicitly prohibited by this MOU or relevant statutes, that are necessary to achieve the objectives as stated in the strategic Plan, Asset Management Plan or Business Plan approved by the councils.

Powers to Recommend to Councils:

Any other matters under the areas of responsibility of the Business Unit and detailed in the Memorandum of Understanding

All recommendations to Council will be subject to adoption of an equivalent resolution by the other Council, unless it is a matter specific to one Council only

Item 8: Nelson Regional Sewerage Business Unit Annual Report 2021/2022

Nelson Regional Sewerage Business Unit

16 September 2022

Report Title: Nelson Regional Sewerage Business Unit Annual Report 2021/2022

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

Report Number: R27151

1. Purpose of Report

1.1 This report is to provide a summary of the annual performance of the Nelson Regional Sewerage Business Unit (NRSBU).

2. Summary

2.1 The NRSBU achieved a surplus of $1,166,531 compared to a budget surplus of $1,531,000.

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

2.3 Fixed income decreased significantly with a deficit compared to budget of $474,883

2.4 Operating and maintenance costs were 9.9% under budget. Contract maintenance was over budget by $304,000 but this was more than compensated by reactive maintenance being under budget by $436,000.

2.5 Budget increases were caused by increased electrical costs, and increased consulting costs.

2.6 Capital expenditure for the year totalled $8,204,596 and included the installation of the effluent recycling facility, screening wash upgrades, inlet odour treatment upgrades, pond de-sludging, sea protection bund construction, road renewals, pump station overflow screens and flooding resilience, and the installation of two sections of the regional rising main upgrade.

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

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

2.9 There was a short period of pond instability during the seasonal change over that resulted in some odour production.

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

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

2.12 There was period where NRSBU requested permission to extend the discharge from the facility when inflows in excess of the discharge capacity occurred for a prolonged period.

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

2.14 The operation and maintenance contractor maintained a high level of Health and Safety vigilance. There were no lost time injuries this year.

3. Recommendation

That the Nelson Regional Sewerage Business Unit

1. Receives the report Nelson Regional Sewerage Business Unit Annual Report 2021/2022 (R27151); and

2. Approves the Nelson Regional Sewerage Business Unit 2021/22 Annual Report (R27151) and Nelson Regional Sewerage Business Unit – Annual Financial Statements 2021/22 (1080325921-64) for presentation to Nelson City Council and Tasman District Council with delegation of all minor amendments to the Nelson Tasman Regional Landfill Business Unit Chairperson and General Manager.

Recommendation to the Nelson City Council and Tasman District Council

That the Nelson City Council and Tasman District Councils

1. Receive the Nelson Regional Sewerage Business Unit Annual Report 2021/22 (R27151) and its attachment, the Nelson Regional Sewerage Business Unit – Annual Financial Statements 2021/22 (1080325921-64).

4. Discussion

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

4.2 Level of Service Performance

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

1. Table 1: Performance against measures outlined in the 2021/2022 Business Plan

Performance Measure (from 2021/22 Business Plan)	Target	Performance against target
Pond free water above sludge layer.	>1m in all ponds by 2023	In progress - Pond F2 completed
Chemical Parameters comply with consents for discharge to water when discharge occurs.	Ongoing consent compliance for all parameters	All parameters in Compliance for 2020/2021
Effluent quality appropriate for safe and sustainable use with land irrigation systems.	Pathogens, Nitrogen defined for land application requirements by 2023	All Parameters in compliance with resource consent for discharge to land.
Obtain reuse consents for appropriate land areas for Reuse Water.	Demonstrated quality performance and consents in place for reuse for dust suppression by June 2024	Resource consent application in progress for Greenacres Golf course.
We have up to date plans as follows:	All plans are live and are reviewed annually
Master plan (50 years focus)		Being developed in consultation with TDC and NCC and Iwi
Activity Plan (10 years Focus)		Approved in 2022. No significant change to the plan has occurred, however delay has occurred with the implementation of some capital projects.
Business plan (1 year focus, but also with tentative three year actions)		Plan for 2022/2023 approved, and draft Plan for 2023/2024 has been prepared for approval.
The number of alternate methods/options for biosolids disposal.	One by 2035	Resource Consent for Biosolids Application to land is in progress. Hearings delayed due to ill health of one commissioner.
Increase in quality of biosolids.	Biosolids Reuse Development Plan Draft by 2023	Biosolids quality assessment has been undertaken as part of the resource consent process. Improvements to monitoring have been identified and are being implemented.
Percentage of biosolids that is reused.	100%	Achieved. All biosolids being reused for fertiliser. Sludge from facultative ponds is being used to create sea defence bund.
Annual volume of biosolids sold.	Biosolids Reuse Development Plan Draft by 2023	Annual biosolids production for 2021/2022 was 36,000m³. All biosolid was disposed to Moturoa Rabbit Island. No biosolids was sold for reuse
Proportion of biosolids to land or reuse/sale	100%	All biosolids was reused on Rabbit Island.
Number of days effluent is discharged to water in summer period (1 Dec to 31 March).	Draft Wastewater reuse plan developed by 2023, with a goal to reaching zero by 2035	Discharge to water occurred every day during the summer 2021/2022. Reuse occurred in the Bell Island irrigation system for 67 days with 36,110m³ of wastewater applied during this time.

Volume of high-value water-reuse we achieve.	Draft Wastewater reuse plan developed by 2023	Water reuse plan not yet complete. Work is being undertaken to develop additional reuse options with Nelson Pine Industries, Greenacres Golf Course, and the Saxton Field Committee.
Amount of total flow we can divert from discharge to water.	At least 75^th percentile by 2040	Currently NRSBU can only divert 1,000 m³ per day for reuse in the Bell Island irrigation system. Work is being undertaken to reuse an additional 250 m3 per day at Greenacres during the 2022/2023 summer.

5. Additional Performance measures

5.1 Table 2 outlines performance measures to compare performance against previous years

2. Table 2: Performance measures compared to previous years

Level of Service	Function	Target Technical Level of Service	Compliance
Level of Service	Function	Target Technical Level of Service	2019/20	2020/21	2021/22
Environmental Impacts	Treatment and Disposal	RMA Consent - Discharge to water	No	Yes	Yes
		RMA Consent - Discharge Volume	Yes	No	No
		RMA Consent - Discharge to Air	No	Yes	Yes
		RMA Consent - Discharge to Land	Yes	Yes	Yes
	Pump stations	RMA Consent - Aberrational Discharge	No note 1	No note 1	No note 1
		Odour Complaints from Pump stations	Yes	Yes	Yes
		Pumpstation overflows	Yes	No	No
		Reticulation Breaks/ Issues	Yes	Yes	Yes
		Air Valve Malfunctions	Yes	Yes	Yes
Capacity	Treatment and Disposal System	System Capacity - Load	Yes	Yes	Yes
	Treatment and Disposal System	System Capacity - Flow	Yes	No	No
	Pump Stations	Overloading system capacity Note 2	Yes	Yes	Yes
Reliability	Treatment and Disposal	No equipment failures that could lead to noncompliance with Resource Consents	Yes	Yes	Yes
	Pump stations		Yes	Yes	Yes
	Pipelines		Yes	Yes	Yes
	Biosolids		Yes	Yes	Yes
Responsiveness	Speed of Response to Emergency and urgent maintenance works	Achievement of response times specified within Operations and Maintenance Contract	Yes	Yes	Yes
Responsiveness	Speed of Response to routine and programmed works	Achievement of response times specified within Operations and Maintenance Contract	Yes	Yes	Yes
Key Contributor Relationships	Treatment and Disposal	Overall Satisfaction	Yes	Yes	Yes
	Pumpstations		Yes	Yes	Yes
	Pipelines		Yes	Yes	Yes
	Biosolids		Yes	Yes	Yes
Notes	1. Consent non-compliance relates to provision of Cultural Health Indexing (CHI). NRSBU have been unable to get commitment from iwi to complete the required CHI.
Notes	2. Compliance relates to provision of capacity to TDC. NRSBU has sold capacity to Tasman District Council, and any overflows from Beach Road pumpstation exceed this capacity so remain the responsibility of TDC.

5.2 Discharge characteristics

Chart, bar chart

Description automatically generated

5.3 Scheme overflows

There were three overflows during the 2021/22 year. 2 of these overflows occurred on the same day, as a result of power surge related equipment failures during high flows at Songer and Saxton pumpstations.

The third overflow was minor, and occurred due to historical valve issues, resulting in an operations error.

5.4 Odour Management

A total of 31 odour reports were received during 2021/22. Of these 26 reports resulted from odour generated by NRSBU activities. These reports were attributed to 10 odour events.

6. Performance assessment when compared to historic performance measures.

6.1 Previous annual reports have used performance measures included in the NRSBU business plan for the year. The NRSBU 2021/2022 business plan included different strategic goals which are discussed later in this report, however for comparison against previous reports an assessment has been made against the historic performance measures.

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

Objective	Key Performance Measures	Performance
Sufficient reticulation, treatment and disposal capacity is available for loads received.	Loads do not exceed the capacity of system components.	Not achieved. The reticulation is currently unable to convey peak flows from Tasman District Council. The treatment plant has limitation on treatment capacity through the mechanical treatment plant.
Intergenerational equity is maintained.	Loans are repaid over 30 years (the average life of the assets).	Achieved.
Levels of service are defined in all contracts and are met.	100% compliance with service level agreements by all major contractors.	Achieved.

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

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

Objective	Key Performance Measures	Performance
The costs of reticulation, treatment and disposal processes are cost effective.	The operational costs of reticulation, treatment and disposal processes meet the approved Annual Budgets.	Achieved. Despite start up costs for the new O&M contract the cost of operations is 9.9% lower than budget for the 2021/22 year.
	All capital projects are delivered within budget.	Not achieved. Capital budgets were underspent due to Regional Services staff capacity. capex spend increased capex to 2020/21 with a higher portion of budgeted capex spending achieved.
The economic lives of all assets are optimised.	Three yearly independent audit of asset management practices confirms this.	Achieved. NRSBU has had a number of assets independently valued by quantity surveyors and in-depth asset inspections have been undertaken on around 60% of assets over the last two years, with Approximately 30% of the assets inspected during 2021/2022
Customers understand the benefits of demand management and the costs, risks and environmental implications of increasing demand.	That progress made by NCC and TDC with implementation of load management policies, priorities.	Not Achieved No response has been received from Nelson City Council regarding future flows to the NRSBU facilities despite requests.
	Combined loads do not exceed the capacity of the components of the system.	Achieved.
Technology choices are well understood and are proven to be reliable, sustainable and cost effective.	All significant technology choices are supported by cost benefit analysis, independent peer review, energy efficiency analysis, risk analysis and, where appropriate, by other users of those technologies.	Achieved.

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

Objective	Key Performance Measures	Performance
Risk management plans include all significant health and safety, environmental, cultural, social economic and contractual risks.	No event, which impacts on agreed levels of service, occurs that has not been identified in the Nelson Regional Sewerage Business Unit risk management plans.	Achieved.
	Customer representatives review and approve the risk management plan annually and following any incidents which require activation of the plan.	Achieved.
Contingency plans adequately address emergency events.	Customer representatives review and approve the plans annually.	Achieved. These matters are considered during the development of the asset management plan and considered at customer meetings.
Contingency plans adequately address emergency events.	Effectiveness of plans is reviewed and confirmed following incidents which require activation of the plan.	Achieved. Incidents reported in quarterly reports and considered at customer meetings.

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

Objective	Key Performance Measures	Performance
Those engaged with the Nelson Regional Sewerage Business Unit have the right skills, experience, and support to perform well.	Annual staff performance reviews include assessment of the skills and experience required in their role in Nelson Regional Sewerage Business Unit and their development needs are identified and met.	Not achieved. NRSBU is understaffed. Concern regarding staffing levels has been communicated to the board and a revised structure has been developed but not implemented at this time .
	Development and succession plans are in place.	Staff capacity issues have limited the ability of staff to undertaken development activities. A new structure has been prepared but has not been implemented.
Operation and maintenance manuals reflect best practice for the management of the plant and reticulation systems and are followed consistently.	An independent audit every three years confirms this.	Achieved. The plans are currently in the process of being updated and a review is programmed for in 2023/24

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

Objective	Key Performance Measures	Performance
Nelson Regional Sewerage Business Unit minimises adverse environmental, social and cultural impacts where this is economically viable.	That progress towards meeting energy efficiency targets is reported on and reviewed annually.	Achieved. Energy efficiency is now reported by the O&M contractor monthly. Power consumption was over budget by $100,000 due to changed electrical supply contract, and increased rainfall compared to 2019/20 NRSBU is working with an external party to install a solar array to be the primary source of power during daylight hours.
	Current capacity to utilise beneficial application of biosolids to land is sustained.	Achieved. 100% of biosolids treated at Bell Island are beneficially applied to Radiata pine plantations belonging to Tasman District Council
	Beneficial economic and environmental reuse of treated wastewater is maintained or increased.	The operation continued to apply treated wastewater to land via the irrigation system on Bell Island. A test water recycling facility has been constructed and is now providing recycled water (“new water”) for the Bell Island WWTP. A consent application for the reuse of treated wastewater to the Greenacres Golf Course has been submitted
	Environmental, social and cultural impacts are considered in all decision making.	While this is not directly measured, Assessment of Environmental Effects undertaken for the Resource Consents on Bell Island and Moturoa Rabbit Island demonstrate that the NRSBU are achieving quality environmental outcomes.

6.7 “Good relationships are maintained with all stakeholders.”

Objective	Key performance Measures	Performance
Shareholders are satisfied with the strategic direction and the economic performance of the business unit.	All strategic and business plans are approved by shareholders.	Achieved.
	All budget projections are met.	Not achieved. Capital expenditure was under budget.
Good relationships are maintained with all stakeholders including owners, iwi, customers, contractors, neighbours, and the wider community.	All complaints or objections are addressed promptly.	Achieved. While some odour issues were notified, customers were satisfied with the NRSBU response to odour complaints.
	All applications for resource consents are approved.	Achieved. Currently still in the process of applying for the Rabbit Island Biosolids Application Consent.
	Up to date information on activities and achievements are publicly available.	Not achieved. The NRSBU website has not been updated as was planned during 2020/2021. A new website is being constructed but is not finished yet.

6.8 “All statutory obligations are met”.

Objective

Key Performance Measures

Performance

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

100% compliance with all statutory obligations.

Achieved.

All resource consents requirements are met.

100% compliance with all statutory obligations.

Not achieved.

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

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

Objective	Key Performance Measures	Performance
Sufficient reticulation, treatment and disposal capacity is available for loads received.	Loads do not exceed the capacity of system components.	Achieved, one very minor overflow occurred. However, it is known that the capacity within the regional rising main network is insufficient to meet the wet weather needs of the Tasman District Councils catchment and this is in the process of being resolved.
Intergenerational equity is maintained.	Loans are repaid over 30 years (the average life of the assets).	Achieved.
Customers are encouraged to engage with the organisation and are satisfied with the service.	All customer representatives attend at least 75% of customer meetings.	Achieved.
	Customer surveys show an average score of at least 5 out of 7 on satisfaction with services.	Only 2 customers chose to respond to the survey. NRSBU takes this as an indication that the other contributors hold no significant issues with NRSBU performance.
Levels of service are defined in all contracts and are met.	100% compliance with service level agreements by all major contractors.	Achieved.

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

7.1 The strategic goals of the NRSBU set the basis for performance measurement and long-term strategies. These strategies are the outlined performance targets in the 2021/22 Business plan.

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

7.2.1 Table of NRSBU Strategic Goals as outlined in the 2021/2022 Business Plan.

Strategic Goal	Objective (This is what it looks like)	Level of Service (This is how we do it)	Performance
We will implement and operate infrastructure considering the needs of our community. Our priorities for this are protection of public health, the environment and cultural values.	Containment and conveyance that is resilient and minimises adverse impacts on the health of the environment and community	We have sufficient capacity in our network to cope with peak flows	Not achieved NRSBU has insufficient capacity to accommodate the flows from TDC network. Upgrades are underway to resolve this.
		We are resilient to mechanical and electrical failures and natural hazards	Not achieved Back up electrical system not sized for storm flows. New generators are being installed to resolve this.
			Mechanical resilience achieved.
		We can readily maintain the network	Not achieved Maintenance requires the network to be removed from service. Duplication is being undertaken as part of the capacity upgrade to resolve this.
	Resilient wastewater treatment that minimises the impact on the environment and community	The treatment plant can reliably accept (N+1 for critical assets) all peak flows from the network	Not achieved Capacity insufficient with Inlet Screens and Secondary separation capacity. This will be exacerbated once the pipework upgrades currently underway are completed.
		The treatment plant can fully treat all dry weather flows	Achieved
		The treatment plant does not create odour issues for the community	Not achieved Upgrades are underway, and performance continues to improve compared to previous years.
		Effluent Quality meets or exceeds required discharge requirements	Achieved
	Long term vision that considers the future needs of the community	Our ongoing business is safeguarded through engagement with council planning processes	Achieved
		We have long term plans for our activities and their impacts	Achieved
		Have systems in place for the ongoing monitoring and reporting of emissions	Achieved – Further development are in progress.
	Alternative methods of biosolids disposal that protect public health and the environment and are sensitive to cultural values	Have a backstop for issues with biosolids disposal	Not achieved. No backstop is currently available for biosolids disposal.
We will work towards the beneficial reuse of resources	Use of ongoing improvement processes to identify, implement and operate feasible biosolids reuse	Treatment to maintain 100% reuse of biosolids	Achieved
		Increase reuse value	Not achieved No work has been undertaken this year to improve reuse value.
		Maintain 100% diversion of biosolids from disposal to landfill	Achieved
	Identified implement and operate feasible systems and infrastructure for the reuse of wastewater	We minimise the amount of effluent we discharge to water	Achieved – Reuse of water commenced during the year, and consent has been applied for additional reuse of wastewater.

7.3 Capital Expenditure 2021/22

An amount of $8.2 million was spent during 2021/22 on capital and renewals projects, compared the budget of the $14 million – this budget included carry over from 2020/21.

For comparison NRSBU carried over $5.98M of capital funds from a budget of $11.60M at the end of the 20/21 FY. As a percentage of budget this is an improvement from 51.5% in 20/21 to 31.1% this year.

	Full Budget 2021/22	Total Spend 2021/22	Carryover
Renewals
Total Renewals	$ 3,242,604	$ 764,334	$ 2,499,815
Capital
Regional Pipeline	$ 6,400,899	$ 3,761,391	$ 2,639,509
Other	$ 4,402,356	$ 3,678,870	$ 723,835
Total Capital	$ 10,803,255	$ 7,440,262	$ 3,363,343

7.4 Capital expenditure: Renewal and Upgrade project details:

	Full Budget 2021/22	Total Spend 2021/22	Carryover
Renewals
Renewals: Buildings	$222,251	$9,816	$212,436
Renewal Inlet	$239,182	$47,651	$191,531
Renewal: Sludge Storage	$446,817	$89,780	$357,037
Renewal: Pump Stations & Rising Mains	$391,992	$175,965	$216,027
Rabbit Island Renewals	$64,881	$3,468	$61,413
Carryover - Aerators	$1,415,169	$0	$1,415,169
Capital
Regional Pipeline Duplication	$6,400,899	$3,761,391	$2,639,509
Pump Station Overflow Screens	$563,534	$25,423	$538,112
ATAD Odour Upgrade	$699,095	$452,850	$246,245
Sludge Management in Ponds at Bell	$499,196	$807,659	-$308,463
Operator Building	$284,287	$70,517	$213,770
Pump Station Flooding Resilience	$213,391	$127,108	$86,283
Sludge Storage Tanks	$763,715	$7,316	$756,399
Rabbit Island Tank Covers/Odour	$274,263	$0	$274263
Biosolids Application Consent	$19,185	$217,014	-$197,829
Aberrational Discharge Consent (EMP)	-$52,611	$54,363	-$106,974

7.5 Scheme Capacity Trends

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Figure 2.18: Bell Island Wastewater Treatment Plant Capacity

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

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

The graph below shows the mean monthly inflow is the highest in this data set.

7.6 Influent characteristics

The Biological Oxygen Demand (BOD) peak & 95^th percentile figures continued an increase during 2021/22. With average BOD remaining constant this would indicate a wider range of BOD concentrations over 2021/22

The Chemical Oxygen Demand (COD) has continued the decrease over the last ten years. This demonstrates that the trade waste agreements continue to provide an incentive for industrial customers to improve on site treatment of wastewater. Whilst the 95^th percentile and average trendlines continue to converge, the spike in peak COD has flattened the peak trendline away from the others.

The Total Kjeldahl Nitrogen (TKN) peaks in the wastewater received at the Bell Island Treatment Plant continues to follow a reducing trend, with average inflow and discharge staying static.

Influent and discharge peak phosphorus levels decreased in 2021/22. Discharge average phosphorus remained constant.

7.7 Nitrogen application via biosolids

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

8. Conclusion

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

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

8.1.2 Analysis of the scheme capacity shows that flows to the plant continue to increase, and no improvement is being observed in PWWFs. Plant capacity is becoming constrained by volumetric flows, and it is expected that this will become significantly worse during rainfall events once the upgraded pipelines have been implemented. Consideration into volumetric capacity improvement at Bell Island need to be undertaken to assess the impact of this growth. Volumetric capacity improvements include additional secondary separation capacity, and additional bypass capacity from the treatment plant inlet to the facultative oxidation ponds.

8.1.3 Consideration should also be given to applying for a variation to the discharge consent to increase the peak discharge volume from 25,000m3 per day to 30,000m3 per day. Prolonged extreme inflow periods are being experienced more frequently resulting in the inflow exceeding the storage capacity of the Bell Island facility.

8.1.4 Analysis of the trends demonstrates that the quality of the discharge meets the required standards. Additional sampling undertaken during 21/22 for virus contaminants has not detected significant virus contaminants in the plant discharge.

8.1.5 Desludging of pond F2 has been completed.

8.2 Financial Performance

Explanations for major variations from the Nelson Regional Sewerage Business Unit's 2021/22 Business Plan are as follows:

Statement of Comprehensive Income

8.2.1 Total income is $39,030 above budget. The sales include a capital charge for access to treatment and an operational charge based on actual usage and actual operating cost. The capital charge budgeted was $4,788,000 however recovery against this was $474,883 less than budgeted at $4,313,117.

8.2.2 Variable charges were budgeted at $4,734,000 with the actual annual charge being $194,000 above budget at $4,928,637.

8.2.3 Total expenses are $429,799 more than budget due to increased consultancy costs, increase power costs, and increased depreciation.

8.3 The 2021/22 year has been a successful year with the commencement of a new collaborative O&M contract for the Nelson Regional Sewerage System (NRSS) and the installation of a number of new capital works.

8.4 Significant progress has been made on the rising main upgrade with it being possible that this upgrade will be installed earlier than projected in the Activity Management Plan.

8.5 Some areas of compliance were not achieved, however in reviewing the noncompliance it needs to be noted that in most cases the noncompliance was either very minor or resulted from activities outside the control of NRSBU.

8.6 Capital project delivery performance improved compared to previous years despite ongoing capacity issues. Some systems improvements have been implemented which should continue this trend through the 2022/23 financial year.

Attachments

Nil

Item 9: Nelson Regional Sewerage Business Unit General Manager Update report.

Nelson Regional Sewerage Business Unit

16 September 2022

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

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

Report Number: R27152

1. Purpose of Report

1.1 This report is an update by the General Manager (GM) on activities undertaken to the end of June 2022 by the Nelson Regional Sewerage Business Unit (NRSBU).

2. Summary

2.1 Operations are generally running well. The site continues to work under COVID-19 Orange Light rules. This includes reducing unnecessary visits to Bell Island.

2.2 The Operations and Maintenance contract is running smoothly. The contract governance team has met to discuss progress and is continuing to enhance the collaborative aspects of the contract. Staff are now cohabiting in the office facility on Best Island, which is improving communication and efficiency.

2.3 The preliminary Target Outturn Cost for the 2022/2023 year has been developed and this is generally in alignment with the Nelson Regional Sewerage Business Unit 2022/2023 business plan budget.

2.4 Capital and renewals work implementation has increased with both the biosolids and sludge tanks replacement and facilities project contracts now prepared. These contracts are now out for pricing from selected contractor. However, the delivery of the capital/ renewals works remains behind schedule.

2.5 A carry over report has been prepared as a separate agenda item for the NRSBU board meeting.

2.6 A review of Regional Services staffing has been prepared but has not progressed significantly since the last update.

2.7 There were 14 odour notifications for the period. Of these notifications 6 related to odour from pond F3 as it underwent rapid seasonal transition, 3 related to odour from the biosolids tank on Bell Island, with 2 attributed to Rabbit Island operations. The remainder were deemed to have come from other sources than NRSBU activities.

2.8 Refinement of the offer to supply NRSBU base load solar power to Bell Island has been undertaken and NRSBU have received a response from the preferred supplier on the agreement term. Further consultation has been undertaken and with contracts and a power purchase agreement being in preparation.

2.9 The regional pipeline rehabilitation project is proceeding well. The relining of Section 11 has been completed. Early contractor meetings have commenced for Section 8 and the pipe materials have been procured and will arrive on site prior to the commencement of works. Construction is due to commence in late September 2022.

2.10 The overall regional pipeline rehabilitation project programme remains on target for completion in the latter half of the 2023 calendar year.

2.11 Financial performance to 30 June 2022 remains behind budget. Income remains below budget for fixed income (-$475,000) however this is compensated by other recoveries including variable income and forestry valuation gains.

2.12 Overall NRSBU ended the financial year with a deficit of $340,000.

2.13 Consultancy costs remained high with external Activity Management support, support for the Bell Island site designation application, and consent applications for the reuse of wastewater at Greenacres contributing to the high consultancy costs. The new contract costs remain above budget due to start up transfer costs. The trend is that costs remain high with income not covering the increased costs.

2.14 A significant flooding event occurred during August 2022, outside of the reference term of this report. Officers will provide verbal updates at the meeting.

3. Recommendation

That the Nelson Regional Sewerage Business Unit

1. Receives the report Nelson Regional Sewerage Business Unit General Manager Update report. (R27152)

4. Health Safety and Environment (HS&E)

4.1 H&S for the operations contract is being managed well, and no significant safety issues are currently outstanding.

4.2 An emphasis has been on changing reporting to include “opportunities for improvement’’ and this has been embraced by operational staff.

4.3 The programme of safety improvements is currently ongoing. Progress on these activities is being updated by the contractor in each monthly report. This month’s list of events shows the increase in event record associated with a focus on improvement opportunities. This is good to see.

4.4 Table 1 below shows a list of H&S notifications for the period 31 May 2022 to 30 June 2022

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5. NRSBU Activities

5.1 NRSBU staff continue to be very busy during the period with numerous activities and projects in progress.

5.2 Projects / Improvement works completed.

· Vehicle underbody wash to reduce vehicle corrosion from salt water

· Bell Island causeway box culvert cleanout.

5.3 Projects underway at present include:

· Moturoa Rabbit Island Biosolids discharge consent.

· Rising main pipework upgrades including negotiation with Barnicoat Developments Ltd for an easement across their site.

· Emergency generators installation.

· Overflow screening at Songer St Pumpstation construction is in progress, with the Wakatu overflow screen still to be installed.

· Consideration of sites for overflow storage at Saxton Rd.

· Consideration regarding future options to adapt to sea level raise for both pumpstations and the Bell Island facility.

· Condition assessment of the concrete rising main between Monaco and Bell Island

· Sludge and Biosolids tank renewals

· Facilities Upgrade

· Best Island Foreshore rehabilitation planting has commenced

· 50 year plan development and liaison with Te Tau Ihu iwi to support the incorporation of cultural values in the strategic planning for wastewater in the top of the south. This work is being undertaken in partnership with TDC, and NCC is also taking part.

· Designation of Bell Island

· Pumps Replacement at Beach Rd, Whakatu and Airport pumpstations

5.3.1 Site improvement works at Bell Island including:

· Generator procurement and installation.

· Covers to chambers

· Pond desludging and sea defence bund.

· Solar power supply draft agreement development.

5.3.2 Other Bell Island Projects

· Workshop and staff ablution facilities upgrade design, design is complete, NRSBU is awaiting the resource consent for the works.

· Repair of the inlet works corroded concrete, design review underway.

· Odour upgrade work at ATAD system, this work has commenced construction onsite.

· Upgrade to the “reuse” water system.

· Installation of isolation valves to rising mains at the treatment plant inlet structure.

5.3.3 Renewals and maintenance on buildings and equipment.

5.3.4 Greenacres Golf Course (Greenacres) water reuse and NRSBU water reuse pipeline consents have been submitted to TDC for consideration. An information request has been received from Tasman District Council, and a response is being prepared by Greenacres.

6. Update on Significant projects

6.1 Rabbit Island Biosolids Application Consent –The Resource Consent Hearing was scheduled for 26 May 2022 however delayed. The hearing proceeded on 2 and 3 August 2022

6.2 Rabbit Island O&M contract - The Biosolids Application Operations and Maintenance Contract is running smoothly.

6.3 NRSS pipeline – A significant amount of work is being undertaken on this project with multiple activities along the length of the pipeline.

· Section 8 from Bunnings to Saxton Pumpstation has been designed. The construction work is scheduled to start in September 2022. Negotiations are underway with the preferred contractor via direct procurement procedures. Construction is scheduled to take 6 months.

· Detailed design is underway for Sections 6 – 7 (from Kotua Place to Saxton Road). Geotech investigation have been undertaken, and resource consent has been granted for the Orphanage Creek stream crossing and work through the HAIL site.

· Section 5– Discussion has started with Barnicoat Developments Ltd to secure the easement through the Heslops site. The construction work will coincide with or be after the completion of the Saxton Creek Stage 4 project being undertaken by NCC. Barnicoat Developments have indicated that no construction is able to be undertaken prior to April 2023.

· Investigations for the section 1-4 (Beach Rd to Heslops) have been completed. It has now been confirmed that the existing pipes beneath Whakatu Drive is intact and can be relined, and it has been confirmed that the existing pipe beneath the estuary is intact and can be rehabilitated.

· Officers have commenced a Registration Of Interest (ROI) process to gauge market desire for the package of works. The ROI incorporates the section 1-4 rehabilitation, 5-7 new pipe installation, and pipeline connections at Beach Rd pumpstation, Saxton pumpstation and Martins Point. This will help inform rehabilitation options for the section 1-4 pipeline, along with market appetite for combining the remaining works into larger projects to gain efficiencies.

· Overall, the progress has been good on the pipeline project. The engineers estimate for the remaining works is estimated to be $13.3 million including engineering fees and contingency. Budget allowance for the works over the 4-year period is $13 Million.

· There is an additional $2.6 million allowance for the Saxton Rd and Beach Rd Pumpstation pipework and pump upgrade which is not yet fully designed.

· Completion for the project is estimated to be the second quarter of the 2023/2024 financial year. This may mean that the $2.25 million allowance for work in the 2024/2025 financial year may need to be bought forward into 2023/2024 financial year.

6.4 Generator installation – The generators have arrived and have been installed at all sites ( Bell Island, Beach Rd, Whakatu, and Airport) and electrical installation is underway at Saxton Road & Bell Island. The electrical installation and commissioning have been delayed due to regulation changes which has required the electrical connection system be redesigned. There is expected to be a cost increase for the project, but the cost changes are not confirmed at this time.

6.5 Desludging of the Bell Island ponds is still in progress with Pond F2 being completed and work now starting on Pond F1.

6.6 Asset inspections –NRSBU is now developing the next stage of the old concrete pipe investigations from Monaco to Bell Island. The next stage of works will include the core sampling of the pipe and inspection of the fittings and cathodic protection systems.

6.7 Greenacre Golf Course Ultrafiltered Water Irrigation – NRSBU has submitted the resource consent application to TDC for the Water reuse pipeline to transport reuse water to Greenacres, and NRSBU has provided information to Greenacres on the water quality from the Ultrafiltration system.

6.8 Bell Island Site Designation – NRSBU has begun preparing an application for the Designation of the NRSBU sites under the Tasman Regional Management Plan.

7. Finance

7.1 The NRSBU end of year result has now been completed till 30 June 2022.

7.1.1 The deficit for the year has now decreased from $468,000 for the year to 31 March 2022 to $340,000 for the full 2021/2022 Financial year.

7.1.2 The deficit was reduced over the last 2 month of the financial year by forestry valuation gains, some operational cost reallocation, and improved variable income.

7.2 Income

· Fixed recoveries under budget by $475,000 due to a lower interest rate in the WACC in the recovery calculation compared with budget.

· The final variable income was $194,000 above budget.

· Other recoveries including septage charges and sand sale royalties were $205,000 over budget for the year.

· Forestry assets increased in value by $113,000 for the year.

7.3 Expenditure

· Management costs under budget by $158,00, however these were more than offset by increased consultancy costs for Activity Management.

· Additional consultancy costs have been incurred associated with the work being undertaken to designate the Bell Island and NRSBU sites in Tasman District Plan.

· Additional consultancy costs were incurred for the preparation and submission of the consent application for the reuse of water at Greenacres Golf Course, along with a site wide soil disturbance consent under the NESCS (National Environmental Standard – Contaminated Soils).

· Contract maintenance costs remain over budget by $304,000 up from $251,000 for the year to 31^St March.

· Consultancy costs were over budget by $339,000 up from $282,000 for the year to 31 March 2022. These costs have been incurred due to staff secondment, O&M procurement, asset register & valuation works, works on NRSBU site designations, and Greenacres Golf Course consent and soil disturbance consent applications.

7.4 Officers would like to bring to the Boards attention the inflationary pressures being experienced across the construction industry at present. Significant increases to raw materials, fuel, plant, and labour costs will put pressure on budgets for maintenance and renewal/capital works activities over the next year. Officers will present further information on the likely impacts of these pressures as this comes available.

Table 3 below shows the NRSBU Financial Report to 30 June 2022.

7.5 The NRSBU financial Position as of 30 June 2022 is shown in Table 4 Below

8. Carryover

8.1 NRSBU has continued a challenging renewals and expenditure programme during the 2021/22 financial year.

8.2 The NRSBU capital delivery performance improve on the previous year with total capital expenditure of $8.2M from a capital budget of $14.04M including 2020/2021 carryovers.

8.3 A carry over report has been prepared to outline capital works undertaken, and the carry overs required to continue the capital and renewals programme in the 2022/2023 financial year.

9. Discharge performance

The wastewater discharge performance from Bell Island WWTP has met all the consent discharge quality criteria for the period to 30 June 2022, however a request to extend the discharge duration was required to allow discharge of the extended high inflow rates during July 2022.

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Inflow data for Bell Island treatment plant illustrates the high inflows received during June and July. These flows are like the high inflows received during August and September 2021 which also necessitated discharge extension request. Peak daily inflows of 62,582m³, and 61,745m³were received in September 2021 and July 2022 respectively.

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10. NRSBU Resourcing

10.1 The resourcing constraints are leading to some capital and operational works being delayed, and further delays are expected because of reduced staffing levels in the regional services team, however support has been sought from consultants and the O&M contractor and additional resource has been supplied for activity management and capital project works.

10.2 The additional support from the contractor is now increasing the timeliness of capital projects and will help to ensure a good start to the 2022/23 financial year.

10.3 A review of Regional Services staffing capacity is being undertaken that includes consideration of the staffing structure in anticipation of the wastewater staff transferring to the new water entity. No progress has been made on this since the last meeting.

Attachments

Nil

Nelson Regional Sewerage Business Unit

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