Agenda of Nelson Regional Sewerage Business Unit

Nelson Regional Sewerage Business Unit

The Nelson Regional Sewerage Business Unit (NRSBU) (NDOCS-1974015928-495) is a joint committee of Nelson City and Tasman District Councils. Operation of the NRSBU is governed by a Board, as established by a Memorandum of Understanding (NDOCS-1974015928-495).

Areas of Responsibility:

· To manage and operate the wastewater treatment facilities at Bells Island and the associated reticulation network efficiently and in accordance with resource consent conditions to meet the needs of its customers.

Powers to Decide:

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

o Operate a bank account for the Business Unit;

o Comply with the Procurement Policy of the Administering Council;

o Enter into all contracts necessary for the operation and management of the Business Unit in accordance with the approved budgets and intent of the Business Plan;

o Authorise all payments necessary for the operation and management of the Business Unit within the approved budgets and intent of the Business Plan;

o Do all other things, other than those things explicitly prohibited by this Memorandum of Understanding or relevant statutes, that are necessary to achieve the objectives as stated in the Strategic Plan, Asset Management Plan or Business Plan approved by the Councils;

o Comply with the Health and Safety Policy and requirements of the administering Council

· Contribute to the sanitary services assessment process of the Councils

· Contribute to and comply with the waste management plans of the Councils

· Contribute to the development of the Councils’ Development and Financial Contribution policies

· Contribute to the Councils’ Regional Policy Statement and Regional Plan Reviews

· Develop and keep under review an appropriate contract for the delivery of waste collection and disposal services with each of its customers

· Follow generally accepted accounting practices

· Follow good employment practices

Powers to Recommend to Councils:

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

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

Quorum:

· The Memorandum of Understanding governing the NRSBU allows for either six or seven members to be appointed. The quorum at a meeting is either three (if six members are appointed), or four (if seven members are appointed), including at least one from each local authority.

Procedure:

· The Standing Orders of the Council providing administration to the committee will be applied at each meeting.

· The Chairperson will not have a casting vote.

· Copies of minutes of meetings of the Joint Committee will be retained by each Council for record keeping purposes.

Nelson Regional Sewerage Business Unit Minutes - 1 September 2023

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Minutes of a meeting of the

Nelson Regional Sewerage Business Unit

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

Held in the Council Chamber, Floor 2A, Civic House, 110 Trafalgar Street, Nelson on Friday 1 September 2023, commencing at 9.31a.m.

Present: Tasman District Councillor K Maling (Chairperson), Nelson City Councillor T Skinner (Deputy Chairperson), Tasman District Councillor B Dowler, Independent Member T Mehmood, and Industry Representative (non-voting) P Wilson

In Attendance: Deputy Chief Executive/Group Manager Infrastructure (A Louverdis), Governance Adviser (K Libeau)

Apology: An apology has been received from Nelson City Councillor K Paki Paki

1. Apologies

Resolved RSBU/2023/017

That the Nelson Regional Sewerage Business Unit

1. Receives and accepts an apology from Nelson City Councillor K Paki Paki.

Dowler/Maling Carried

2. Confirmation of Order of Business

There were no changes 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 5 May 2023

Document number M20126, agenda pages 7 - 10 refer.

Resolved RSBU/2023/018

That the Nelson Regional Sewerage Business Unit

1. Confirms the minutes of the meeting of the Nelson Regional Sewerage Business Unit, held on 5 May 2023, as a true and correct record.

Dowler/Mehmood Carried

6. Nelson Regional Sewerage Business Unit General Manager Update Report August 2023

Document number R27882, agenda pages 11 - 21 refer.

General Manager Regional Services, Nathan Clarke, took the report as read and answered questions on the Bell Island solar array and the potential ramifications and options pertaining to the officer’s requested increase in land size including a virtual power connection agreement. He also answered questions on the regional pipeline renewal programme, the capacity of the system in dealing with the increase in extreme weather events and the Health and Safety schedule contained within the report.

Operations Manager Regional Services, Brad Nixon, answered questions on odour issues.

Resolved RSBU/2023/019

That the Nelson Regional Sewerage Business Unit

1. Receives the report Nelson Regional Sewerage Business Unit General Manager Update Report August 2023 (R27882).

Mehmood/Skinner Carried

7. Nelson Regional Sewerage Business Unit Annual Report 2022/23 Summary

Document number R27835, agenda pages 22 - 71 refer.

Operations Manager Regional Services, Brad Nixon took the report as read and answered questions on the incidents where the inflows exceeded the capacity of the Bell Island treatment plant and the current procedures in place to manage the overflows. Officers from Nelson and Tasman (Mr Louverdis and Mr Schruer) advised the Committee as to their respective inflow and infiltration work programmes.

Accountant, Andrew Bishop, spoke to the financial position including the main drivers of the increase in surplus and the additional costs in operational expenditure.

General Manager Regional Services, Nathan Clarke, spoke about the capacity to complete other projects such as biosolids disposal and future-proofing, noting that whilst some projects had not been completed, none of them were considered critical. Mr Clarke answered questions on the renewal of the pipeline across Saxton Creek (in relation to the upgrade works Nelson are undertaking as part of the upgrade of Saxton Creek) and the timeframe for this work to be completed.

Resolved RSBU/2023/020

That the Nelson Regional Sewerage Business Unit

1. Receives the report Nelson Regional Sewerage Business Unit Annual Report 2022/23 Summary (R27835) and its attachments (1080325921-573 and 1080325921-577); and

2. Approves the Nelson Regional Sewerage Business Unit Annual Report 2022/23 (1080325921-573) and Financial Statements (1080325921-577) for presentation to Nelson City Council and Tasman District Council.

Dowler/Skinner Carried

Recommendation to Council RSBU/2023/021

That the Nelson City Council and Tasman District Council

1. Receives the Nelson Regional Sewerage Business Unit Annual Report 2022/23 (1080325921-573) and Financial Statements (1080325921-577).

Dowler/Skinner Carried

8. Nelson Regional Sewerage Business Unit 2022/23 Capital and Renewal Update and Carryover

Document number R27834, agenda pages 72 - 80 refer.

Operations Manager Regional Services, Brad Nixon took the report as read and answered questions on inflation effects on pricing, budgeting within the Activity Management Plans and allocation of the carryover funds within the coming financial year and their ability to deliver these works.

Resolved RSBU/2023/022

That the Nelson Regional Sewerage Business Unit

1. Receives the report Nelson Regional Sewerage Business Unit 2022/23 Capital and Renewal Update and Carryover (R27834); and

2. Approves the carryover of capital ($1.139M) and renewals budgets ($2.563M) from 2022/23 financial year to the 2023/24 financial year, to ensure continuation of urgent and planned works.

Skinner/Dowler Carried

9. Nelson Regional Sewerage Business Unit Master Plan 2024-2075

Document number R27884, agenda pages 81 - 99 refer.

General Manager Regional Services, Nathan Clarke took the report as read.

In response to questions on the status of the Master Plan, Nelson and Tasman officers noted that it held the same status as Infrastructure Strategies that were required to be prepared by each Council (to form part of each Council’s LTP and consultation) and that the same rigour was needed to apply to the Master Plan. As officers had not had adequate time to review the Master Plan, and iwi had not had input into its preparation it was suggested that the Master Plan should be sent to each Council for consideration as part of a bigger discussion.

On that basis it was agreed the Master Plan be approved for submission to both Councils and iwi and the officer’s recommendation was amended accordingly.

The meeting adjourned from 10:36a.m. until 10:50a.m.

Resolved RSBU/2023/023

That the Nelson Regional Sewerage Business Unit

1. Receives the report Nelson Regional Sewerage Business Unit Master Plan 2024-2075 (R27884) and its attachment/s (108325921-551); and

2. Agrees the need for a Regional Wastewater Master Plan; and

3. Approves the Nelson Regional Sewerage Business Unit Master Plan (108325921-551) in principle and that it be submitted to Nelson City Council and Tasman District Council for comment before any formal adoption to take into account a regional and iwi perspective.

Dowler/Mehmood Carried

Recommendation to Council RSBU/2023/024

That the Nelson City Council and Tasman District Council

1. Receive the Nelson Regional Sewerage Business Unit Wastewater Master Plan (1080325921-551) for review, and provide feedback to the Nelson Regional Sewerage Business Unit if required.

Dowler/Mehmood Carried

10. Nelson Regional Sewerage Business Unit Draft Activity Management Plan 2024 - 2034

Document number R27885, agenda pages 100 - 214 refer.

General Manager Regional Services, Nathan Clarke took the report as read and answered questions regarding the priorities for the Nelson Regional Sewerage Business Unit, pending capital expenditure and the necessity of a coastal hazard study to help inform future decisions.

Resolved RSBU/2023/025
	*That the Nelson Regional Sewerage Business Unit* *1. Receives the report Nelson Regional Sewerage Business Unit Draft Activity Management Plan 2024 - 2034 (R27885) and its attachment (1080325921-575); and* 2. Approves the Nelson Regional Sewerage Business Unit draft Activity Management Plan 2024-2034 (1080325921-575) for presentation to the Nelson City Council and Tasman District Council with delegation of all minor amendments to the Nelson Regional Sewerage Business Unit Chairperson and General Manager.
Dowler/Maling Carried
Recommendation to Council RSBU/2023/026
	*That the Nelson City Council and Tasman District Council* 1. Receive the Nelson Regional Sewerage Business Unit draft Activity Management Plan 2024-2034 (1080325921-575) for review, and provide feedback to the Nelson Regional Sewerage Business Unit if required.
Dowler/Maling Carried

11. Nelson Regional Sewerage Business Unit Draft Business Plan 2024/25

Document number R27876, agenda pages 215 - 235 refer.

General Manager Regional Services, Nathan Clarke took the report as read and answered questions on the potential to obtain land adjacent to the Saxton pump station in order to future-proof the network and manage overflows and the ability for both councils to improve resilience and also increase capacity through this potential land purchase.

Resolved RSBU/2023/027

That the Nelson Regional Sewerage Business Unit

1. Receives the report Nelson Regional Sewerage Business Unit Draft Business Plan 2024/25 (R27876) and its attachment (1080325921-570); and

2. Approves the Nelson Regional Sewerage Business Unit Draft Business Plan 2024/25 (1080325921-570) for submission to Nelson City Council and Tasman District Council for their consideration and feedback, with delegation of all minor amendments to the Nelson Regional Sewerage Business Unit Chairperson and General Manager.

Skinner/Dowler Carried

Recommendation to Council Resolved RSBU/2023/028

That the Nelson City Council and Tasman District Council

1. Receive the Nelson Regional Sewerage Business Un it Draft Business Plan 2024-25 (1080325921-570) for review, and provide feedback to the Nelson Regional Sewerage Business Unit, if required.

Skinner/Dowler Carried

There being no further business the meeting ended at 11:23a.m.

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

Resolved

Item 6: Nelson Regional Sewerage Business Unit General Manager Report November 2023

 
Nelson Regional Sewerage
Business Unit
17 November 2023
 

Report Title: Nelson Regional Sewerage Business Unit General Manager Report November 2023

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

Report Authoriser: Alec Louverdis - Group Manager Infrastructure

Report Number: R28113

1. Purpose of Report

1.1 This report is an update by the General Manager (GM) on activities undertaken to the end of September 2023 by the Nelson Regional Sewerage Business Unit (NRSBU).

2. Recommendation

That the Nelson Regional Sewerage Business Unit

1. Receives the report Nelson Regional Sewerage Business Unit General Manager Report November 2023 (R28113).

3. Summary

3.1 The Operations and Maintenance contract is running smoothly.

3.2 There was one odour notifications for the period. The notification was potentially related to the biosolids disposal facility or discharge of biosolids on Moturoa Rabbit Island but was not able to be confirmed.

3.3 There was one “overflow” event during the last period. This was associated with a corroded fitting inside one of the air valve chambers in the regional rising main.

3.3.1 The overflow was quickly contained, and the required notifications were made.

3.3.2 The failure appears to be related to corrosion occurring inside the pipe fitting and it is hypothesised that it has been accelerated by dissimilar metals being in contact with each other.

3.3.3 The failure exposes the risk of similar issues with the condition of five similar fittings in similar installations. NRSBU has initiated a programme to check and where necessary replace these fittings.

3.4 The preliminary operating costs against the Target Outturn Cost (TOC) for the 2023/2024 year is slightly above the NRSBU 2023/2024 business plan forecast budget. The increase above budget year to date is expected to reduce over the second quarter. The increased costs were related to a higher maintenance programme at the start of financial year.

3.5 Graph of progress against TOC

3.6 Capital and renewals work for the 2023/24 has been running well. The new rising main is still progressing well, with minor slippage in the implementation programme.

3.7 Delays are continuing to be experienced with the implementation of the new facilities building and the replacement tanks at Bell Island. Tenders for the tank replacement have now been received and are being reviewed.

3.8 Inspections of the inlet screens rotating drums has found cracking in the drive end roller drum. Both screens have now been found to have this similar failure occurring. A replacement drum has been ordered.

3.9 Financial performance to 30 September 2023 finished behind budget by $351,000.

3.10 Year to date the trend is for income to be below budget and financing costs to be higher than budget and it is expected that this trend will continue.

3.11 The NRSBU Annual Hui with Te Tau Ihu Iwi was held at the NRSBU Best Island Office on the 8^th of November.

3.12 Recruitment has commenced for the Contract and Sustainability Engineer with the role being advertised at present.

4. Health and Safety

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

5. Discussion

5.1 Inlet screening issues

5.1.1 Cracking has been identified in both rotating screen drums. A new replacement drum for the screens has been ordered and is urgently required.

5.1.2 The delivery time for the new drum is approximately 14 weeks, and therefore it is possible that NRSBU will experience periods where screening capacity is limited while additional repairs are undertaken on the existing screen drums.

5.1.3 The NRSBU Activity Management Plan 2024-2034 (AMP) has identified that one the lack of redundant capacity at the wastewater treatment plant inlet and an issue in the AMP.

5.1.4 Funding was included for an additional screen in the AMP funding for year two of the AMP and this may need to be accelerated.

5.2 Wastewater overflow

5.2.1 One overflow occurred during this period. The overflow resulted from a corroded fitting in one of the rising main air valve chambers.

5.2.2 The overflow resulted in approximately 100m3 of wastewater being discharged to the environment. All necessary actions for notification and remedial actions were taken.

5.2.3 The event has identified an unknown risk within the network, and actions have been implemented to investigate and replace the fittings with similar issues within the rising main network.

5.3 Capital and Renewal Projects

5.3.1 Improvement works completed.

· Martin Point rising main connection.

5.3.2 Projects underway at present include:

· Update Business Continuity Plan.

· Water reuse plan development.

· Regional wastewater philosophy development.

· Moturoa Rabbit Island biosolids discharge consent.

· Emergency generators installation.

· Consideration of sites for overflow storage at Saxton Rd, including negotiations for land acquisition for Saxton Rd pump station.

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

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

· Sludge and biosolids tanks renewals.

· Facilities upgrade on Bell Island.

· Pumps replacement at Beach Rd, Whakatu and Airport pump stations.

· Pipe corridor installation from Bell Island to Best Island beside the causeway.

· Emission management plan development.

· Biosolids application facility tank cover design and construction.

5.3.3 Site improvement works at Bell Island include:

· Handrails repairs and maintenance to ATAD system and ponds.

· Pond desludging and sea defence bund.

· Solar power supply development discussions.

5.3.4 Other Bell Island projects

· Repair of the inlet works corroded concrete is scheduled to occur during summer 2023/24, and planning for the project has commenced.

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

· Renewals and maintenance on buildings and equipment.

5.3.5 Greenacres Golf Course (Greenacres) water reuse consent has been granted, and the consent for the pipeline across the causeway between Bells Island and Best Island has been received. This consent includes additional pipework for the Best Island irrigation system and ducting to future proof this pipe route to avoid needing to excavate this route in the future.

5.4 Update on significant projects

5.4.1 Rabbit Island biosolids application consent – The Resource Consent was granted in April 2023. The NRSBU appealed the decision. The appeal did not proceed to a hearing, with the parties progressing informal mediation discussions to an agreed outcome. Further consideration of minor’s corrections to the issued conditions by TDC is required.

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

· Construction is underway for Sections 6 – 7 (from Kotua Place to Saxton Road). An 1870s rail bridge abutment was identified on the alignment through Orphanage stream and archaeological input was required. The pipe route has been adjusted around the abutments.

· Section 5– Discussion is continuing with Barnicoat Developments Ltd to secure the easement through the site.

· Sections 1- 4 (Beach Rd to Saxtons Creek) tender was awarded to Hunter Civil Ltd. Construction is due to commence in November 2023.

· The works to complete the connection between the relined estuary crossing pipe and the existing rising mains is now substantially completed, with the contractor now completing minor activities such as cathodic protection.

· Overall, the progress has been good on the pipeline project.

· Inflationary costs have resulted in the project budget increasing by $1.73 million over the duration of the project.

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

5.5 Finance

5.5.1 The result for the year ending 30 September 2023 shows that NRSBU is behind budget by $351,972 for the year to 30 September 2023.

5.5.2 Income

· Fixed recoveries under budget by $175,000.

· The final variable income was $10,000 below budget.

5.5.3 Expenditure

· Maintenance costs are over budget by $115,000.

· Interest was $167,000 over budget due to higher interest rates.

5.5.4 The financial trend year to date is for income to be low against the fixed costs and financing costs are high compared to budget. Both these issues are not able to be changed by NRSBU management, and as such it is expected that this trend will continue. This under recovery results from changes to interest rates used in the charging model versus the budget and the timing of setting these interest rates. The process used means there is a significant time difference during which changes to interest rates can occur.

5.5.5 Maintenance costs are slightly above budget due a range of activities including higher maintenance activities and purchase of pond emergency response chemicals.

6. Conclusion

6.1 Overall, the NRSBU is running well.

6.2 There have been few health and safety issues and these issues have been closed out effectively.

6.3 There was one failure on the rising main system that resulted in a “overflow”. This was quickly fixed, and a programme of works has been started to inspect and replace other fittings with similar characteristics.

6.4 A failure was experienced unexpectedly on the second inlet screen drum, and this has escalated the urgency associated with the replacement screen drum.

6.5 Financial performance for the maintenance contract is close to budget and no significant issues have been identified. The NRSBU fixed recovery and interest calculation is under recovering against budget and this trend is expected for the financial year.

6.6 Significant progress is occurring on capital projects in general and with the regional rising main duplication.

Attachments

Nil