AGENDA
Ordinary meeting of the
Nelson Regional Sewerage Business Unit
Tuesday 28 November 2023
Commencing at 1.30p.m.
Council Chamber
Floor 2A, Civic House
110 Trafalgar Street, Nelson
Membership:
Chairperson Tasman District Councillor Kit Maling
Deputy Chairperson Nelson City Councillor Tim Skinner
Members Nelson City Councillor Kahu Paki Paki
Tasman District Councillor Barry Dowler
Independent Member Tallat Mehmood
Industry Representative (non-voting) Philip Wilson
Quorum: Three
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).
· 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.
· 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
· 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.
· 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.
· 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 - 17 November 2023
Nelson Regional Sewerage Business Unit
28 November 2023
1. Apologies
Nil
2. Confirmation of Order of Business
3.1 Updates to the Interests Register
3.2 Identify any conflicts of interest in the agenda
Document number M20363
Recommendation
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That the Nelson Regional Sewerage Business Unit 1. Confirms the minutes of the meeting of the Nelson Regional Sewerage Business Unit, held on 17 November 2023, as a true and correct record. |
6. Nelson Regional Sewerage Business Unit - Business Plan 2024-25 8 - 28
Document number R28142
Recommendation
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That the Nelson Regional Sewerage Business Unit 1. Receives the report Nelson Regional Sewerage Business Unit - Business Plan 2024-25 (R28142) and its attachment (1080325921-756); and 2. Adopts the Nelson Regional Sewerage Business Unit Business Plan 2024-25 (1080325921-756) for distribution to the Nelson City Council and Tasman District Council. |
Recommendation to Nelson City Council and Tasman District Councils
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That the Nelson City Council and Tasman District Councils 1. Receive the Nelson Regional Sewerage Business Unit Business Plan 2024-25 (1080325921-756), and 2. Approves the Nelson Regional Sewerage Business Unit Business Plan 2024-25 (1080325921-756). |
7. Nelson Regional Sewerage Business Unit - Activity Management Plan 2024-34 29 - 142
Document number R28143
Recommendation
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That the Nelson Regional Sewerage Business Unit 1. Receives the report Nelson Regional Sewerage Business Unit - Activity Management Plan 2024-34 (R28143) and its attachment (1080325921-753); and 2. Adopts the Nelson Regional Sewerage Business Unit Activity Management Plan 2024-34 (1080325921-753) for distribution to Nelson City Council and Tasman District Council. |
Recommendation to Nelson City Council and Tasman District Councils
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That the Nelson City Council and Tasman District Council 1. Receive the Nelson Regional Sewerage Business Unit Activity Management Plan 2024-34 (1080325921-753); and 2. Approves the Nelson Regional Sewerage Business Unit Activity Management Plan 2024-34 (1080325921-753) as the version to inform the development of the Long Term Plan 2024-34. 3. Notes that the Nelson Regional Sewerage Business Unit Activity Management Plan 2024-34 (1080325921-753) will be updated, and the final Activity Management Plan approved by Council after the adoption of the Long Term Plan 2024-2034. |
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 17 November 2023, commencing at 9.30a.m.
Present: Tasman District Councillor K Maling (Chairperson), Tasman District Councillor B Dowler, Nelson City Councillors K Paki Paki, T Skinner (Deputy Chairperson) and Independent Member T Mehmood, Industry Representative (non-voting) P Wilson
In Attendance: Deputy Chief Executive/Group Manager Infrastructure (A Louverdis), Senior Governance Adviser (H Wagener) and Assistant Governance Advisor (A Bryce)
Apologies : Industry Representative (non-voting) P Wilson
1. Apologies
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Apologies |
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Resolved RSBU/2023/029 |
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That the Nelson Regional Sewerage Business Unit 1. Receives and accepts the apologies from Industry Representative (non-voting) P Wilson. |
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Dowler/Skinner Carried |
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2. Confirmation of Order of Business
There was no change to the order of business.
3. Interests
There were no updates to the Interests Register, and no interests with items on the agenda were declared.
4. Public Forum
There was no public forum.
5. Confirmation of Minutes
5.1 1 September 2023
Document number M20268, agenda pages 4 - 10 refer.
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That the Nelson Regional Sewerage Business Unit 1. Confirms the minutes of the meeting of the Nelson Regional Sewerage Business Unit, held on 1 September 2023, as a true and correct record. |
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Skinner/Dowler Carried |
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6. Nelson Regional Sewerage Business Unit General Manager Report November 2023
Document number R28113, agenda pages 11 - 18 refer.
General Manager Regional Services, Nathan Clarke, and Operations Manager Regional Services, Brad Nixon took the report as read and answered questions on the causes of failures of handrails, fittings and inlet screens rotating drums and the need and challenges of proactive asset management, recruitment of the Contract and Sustainability Engineer, progress on the Rabbit Island biosolids resource consent application and inclusion in future reports of the safety audits summaries.
General Manager Regional Services, Nathan Clarke, and Accountant, Andrew Bishop answered questions on the effect of the disparity of interest charges on the two Councils and two major users due to the changes to interest rates used in the charging model versus the budget and the timing of setting these interest rates.
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Resolved RSBU/2023/031 |
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That the Nelson Regional Sewerage Business Unit 1. Receives the report Nelson Regional Sewerage Business Unit General Manager Report November 2023 (R28113). |
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Skinner/Paki Paki Carried |
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There being no further business the meeting ended at 10.09a.m.
Confirmed as a correct record of proceedings by resolution on (date)
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Resolved |
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Item 6: Nelson Regional Sewerage Business Unit - Business Plan 2024-25
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Nelson Regional Sewerage Business Unit
28 November 2023
Report Title: Nelson Regional Sewerage Business Unit - Business Plan 2024-25
Report Author: Nathan Clarke - General Manager Regional Sewerage and Landfill
Report Authoriser: Alec Louverdis - Group Manager Infrastructure
Report Number: R28142
1. Purpose of Report
1.1 To consider the feedback on the draft Nelson Regional Sewerage Business Unit (NRSBU) Business Plan 2024-25 and adopt the final NRSBU Business Plan.
2. Summary
2.1 The NRSBU Business Plan outlines the work programme for 2024-25 and reflects the first year of the 2024-2034 Activity Management Plan (AMP).
2.2 Officers presented the 2024–2034 AMP to Nelson City Council (NCC) and Tasman District Council (TDC) officers as well as to a joint NCC/TDC Council workshop and have incorporated feedback received. The changes to the AMP have been carried through to the 2024-25 Business Plan.
3. Recommendation
Recommendation to Nelson City Council and Tasman District Councils
4. Background and Discussion
4.1 NRSBU prepared the draft 2024-25 Business Plan, and this was approved by the Committee for consultation and feedback to NCC and TDC on 01 September 2023.
4.2 As the 2024-25 financial year also forms the first year of the AMP consultation and feedback on the AMP is considered to apply to the Business Plan.
4.3 NRSBU, NCC and TDC officers met to discuss the AMP in September 2023.
4.4 Changes were made to the AMP, as a result of collaborative discussions during the meeting, to help support budgetary constraints of both Councils. The following changes affect the Business Plan for 2024/25
4.4.1 OPEX:
· Deferral of commencement of maintenance dredging of the facultative & maturation ponds, from 2024/25 to 2027/28
· Reduction in general consultancy costs, following creation of an additional NRSBU staff position
· Correction of ongoing operational costs for data visualisation and dashboarding
4.4.2 CAPEX
· Biosolids pipeline duplication/resilience – commencement moved from 2024/25 to 2025/26
· Pipeline duplication expansion – commencement moved from 2024/25 to 2025/26
· Bell Island irrigation expansion – commencement moved from 2024/25 to 2025/26
· Additional process monitoring and remote automation – commencement deferred from 2024/25 to 2030/31
· The following activities from the Business Plan have been wholly moved out of the 10 year AMP period:
· Secondary treatment improvement (and emissions reduction)
· Storage construction at pump stations
4.5 Following this the updated AMP programme was presented to a workshop of the joint Councils on 10 November 2023 and no further feedback was received.
5. Options
5.1 The following table outlines two options for the NRSBU final Business Plan. Officers support option 1.
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Option 1: Adopt the Business Plan 2024/25 for presentation to the NCC and TDC. Recommended option |
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Advantages |
· Allows continuation of existing capital programmes. · Allows ongoing renewal and upgrade of the scheme. · Allows NCC and TDC to include this in their consultation process. · Capital expenditure is reduced from the draft Business plan |
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Risks and Disadvantages |
· Nil |
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Option 2: Do not adopt the Business Plan 2024/25 |
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Advantages |
· Nil |
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Risks and Disadvantages |
· NRSBU will not be meeting the requirements of the Terms of Reference adopted by Nelson City and Tasman District councils. · NRSBU will not have approval to continue its works programme. · NRSBU will not meet its legal requirements, capital works programme, health and safety obligations or performance targets. · System improvements to meet consent requirements and levels of service would not be carried out – this could result in consent condition breaches and subsequent infringements. |
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6. Important considerations for decision making |
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6.1 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. |
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6.2 Consistency with Community Outcomes and Council Policy The NRSBU Business Plan feeds into the NCC and TDC Annual Plans and the Business Plan has been prepared based on the NRSBU 2024 -2034 Activity Management Plan. |
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6.3 Risk This report includes allowance or mitigation of environmental and business continuity risks. The business plan will be submitted to TDC and NCC for feedback, this feedback will be considered by the Board. The risk of not approving the business plan is that this could delay the NRSBU implementing the works outlined and could result in significant adverse effect environmentally, financially and to the sustainability of wastewater in the Nelson Tasman Region. |
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6.4 Financial impact The NRSBU draft Business Plan 2024/25 incorporates the capital and operational costs set out in the NRSBU draft Activity Management Plan 2024-34. |
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6.5 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. |
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6.6 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. Furthermore the impacts of climate change are considered significantly in the NRSBU AMP, upon which this Business Plan is based. |
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6.7 Inclusion of Māori in the decision making process No engagement with Māori has been undertaken in preparing this report but iwi have representation on the Board. |
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6.8 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.a |
7. Conclusion and Next Steps
7.1 The Business Plan 2024/25 has been prepared alongside the AMP 2024 – 2034.
7.2 Feedback from NCC and TDC on the AMP has been incorporated into the Business Plan.
7.3 Alterations to the capital programme for 2024/25 have been made in collaboration with NCC and TDC, to support budgetary constraints.
7.4 It is recommended that NRSBU adopts the Business Plan and forwards the Business Plan to the Councils for approval.
Attachments
Attachment 1: 1080325921-756 - NRSBU - Business Plan 2024/25 ⇩
Item 7: Nelson Regional Sewerage Business Unit - Activity Management Plan 2024-34
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Nelson Regional Sewerage Business Unit
28 November 2023
Report Title: Nelson Regional Sewerage Business Unit - Activity Management Plan 2024-34
Report Author: Nathan Clarke - General Manager Regional Sewerage and Landfill
Report Authoriser: Alec Louverdis - Group Manager Infrastructure
Report Number: R28143
1. Purpose of Report
1.1 To consider the feedback received on the draft Nelson Regional Sewerage Business Unit (NRSBU) Activity Management Plan 2024-34 (AMP) and adopt the final NRSBU AMP.
2. Summary
2.1 The NRSBU prepared an AMP for the 2024 – 2034 period and this was approved for consultation and feedback with NCC and TDC on 1 September 2023.
2.2 The NRSBU met with TDC and NCC officers, and a joint workshop was held to consider the AMP.
2.3 Changes to the operational expenditure and capital programme are recommended.
Recommendation to Nelson City Council and Tasman District Council
4. Background and Discussion
4.1 The NRSBU prepared an AMP for the 2024 – 2034 period and this was approved for consultation and feedback with NCC and TDC on 1 September 2023.
4.2 The AMP was circulated to NCC and TDC and NRSBU officers meet with TDC and NCC officers to discuss the AMP and to receive feedback during September 2023.
4.3 The following changes were made to the AMP, as a result of collaborative discussions during the meeting, to help support budgetary constraints of both Councils
4.3.1 OPEX:
· Deferral of commencement of maintenance dredging of the facultative & maturation ponds, from 2024/25 to 2027/28
· Reduction in general consultancy costs, following creation of an additional NRSBU staff position.
· Correction of ongoing operational costs for data visualisation and dashboarding
4.3.2 CAPEX
· Biosolids pipeline duplication/resilience – commencement moved from 2024/25 to 2025/26
· Pipeline duplication expansion – commencement moved from 2024/25 to 2025/26
· Bell Island irrigation expansion – commencement moved from 2024/25 to 2025/26
· Additional process monitoring and remote automation – commencement deferred from 2024/25 to 2030/31
· Anaerobic digestion – implementation moved out of 10 year period
· Reuse pipework (Nelson) – commencement moved from 2026/27 to 2031/32
· The following activities have been wholly moved out of the 10 year AMP period:
· Pump station seismic resilience
· Sea level rise mitigation
· Biosolids drying
· Monaco valve chamber installation
· Odour improvements at Bell Island
· Secondary treatment improvement (and emissions reduction)
· Storage construction at pump stations
4.4 Following this the updated AMP programme was presented to a workshop of the joint Councils on 10 November 2023. No further feedback was received.
5. Options
5.1 The following table outlines two options for the NRSBU final Activity Management Plan. Officers support option 1.
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Option 1: |
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Advantages |
· Allows continuation of existing capital programmes. · Allows ongoing renewal and upgrade of the scheme. · Allows NCC and TDC to include this in their consultation process. · Capital expenditure is reduced from the draft Activity Management Plan |
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Risks and Disadvantages |
· Some activities moved out of 10 year plan, including emissions reduction. |
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Option 2: Not adopt |
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Advantages |
· Nil |
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Risks and Disadvantages |
· NRSBU will not be meeting the requirements of the Terms of Reference adopted by Nelson City and Tasman District councils. · NRSBU will not have approval to continue its works programme. · NRSBU will not meet its legal requirements, capital works programme, health and safety obligations or performance targets. · System improvements to meet consent requirements and levels of service would not be carried out – this could result in consent condition breaches and subsequent infringements. |
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6. Important considerations for decision making |
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6.1 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. |
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6.2 Consistency with Community Outcomes and Council Policy The NRSBU Activity Management Plan feeds into the NCC and TDC Activity Management Plans |
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6.3 Risk This report allows the Councils and community to comment on the 10 year proposed management of the Nelson Regional Sewerage Scheme. Should the AMP not be approved for distribution to NCC & TDC there is a risk that this may delay the preparation & adaptation of the Councils AMPs. |
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6.4 Financial impact The AMP reflects implementation of critical upgrades, as well as projects that mitigate environmental and cultural impacts. Some of these upgrades a crucial to conveying and treating the wastewater volume already discharged by contributors. The programme of capital works proposed by the NRSBU will result in increased costs, through both increased operational requirements and debt funding. These costs are set out in the AMP. |
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6.5 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. |
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6.6 Climate Impact A key feature of the NRSBU AMP is the ability to implement systems to reduce greenhouse gas emissions and mitigate environmental and cultural issues. Furthermore the impacts of climate change are considered significantly in the NRSBU AMP. |
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6.7 Inclusion of Māori in the decision making process No engagement with Māori has been undertaken in preparing this report but iwi have representation on the Board. NRSBU have been extensively involved in discussions with iwi regarding the long term future of wastewater management in the Te Tau Ihu rohe, and learnings from this process are reflected in the AMP where applicable. |
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6.8 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. |
7. Conclusion and Next Steps
7.1 Feedback from NCC and TDC has been incorporated into the Plan.
7.2 Alterations to the AMP capital programme have been made in collaboration with NCC and TDC, to support budgetary constraints.
7.3 It is recommended that NRSBU adopts the AMP and forwards the AMP to the Councils for inclusion in their Long Term Plan processes.
Attachments
Attachment 1: 1080325921-753 - NRSBU - Activity Management Plan 2024 - 2034 ⇩
