AGENDA
Ordinary meeting of the
Nelson Tasman Regional Landfill Business Unit
Friday 16 August 2024
Commencing at 9.30a.m.
Council Chamber
Floor 2A, Civic House
110 Trafalgar Street, Nelson
Chairperson Deputy Mayor of Tasman Stuart Bryant
Deputy Chairperson Nelson City Councillor Mel Courtney
Members Tasman District Councillor Trindi Walker
Nelson City Councillor Aaron Stallard
Iwi Representative Andrew Stephens
Quorum: 3
The Nelson Tasman Regional Landfill Business Unit (NTRLBU) (NDOCS-1974015928-497 is a joint committee of Nelson City and Tasman District Councils. The NTRLBU is governed by a Terms of Reference (NDOCS-1974015982-497).
· Matters relating to the operation and use of the York Valley and Eves Valley landfills as regional landfill facilities, and the timing of their use.
· Setting of fees and charges for waste disposal at the regional landfill facilities by 30 June each year; including the power to apply discounted fees and charges for the disposal of waste in bulk; and to determine other circumstances where discounted fees and charges may be applied.
· Decisions to accept (or not accept) waste that is generated outside the Nelson-Tasman region.
· Any other matters under the area of responsibility of the Business Unit
· 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 NTRLBU allows for either four or five members to be appointed. The quorum at a meeting is either two (if four members are appointed), or three (if five members are appointed), including at least one from each local authority.
· The Standing Orders of the Council providing administration to the committee shall be applied at each meeting.
· The Chairperson will not have a casting vote
· Copies of minutes of meetings of the Nelson Tasman Regional Landfill Business Unit will be retained by each Council for record keeping purposes
Nelson Tasman Regional Landfill Business Unit
16 August 2024
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 M20571
Recommendation
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That the Nelson Tasman Regional Landfill Business Unit 1. Confirms the minutes of the meeting of the Nelson Tasman Regional Landfill Business Unit, held on 17 May 2024, as a true and correct record. |
6. Nelson Tasman Regional Landfill Business Unit General Manager Update Report August 2024 9 - 128
Document number R28727
Recommendation
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That the Nelson Tasman Regional Landfill Business Unit 1. Receives the report Nelson Tasman Regional Landfill Business Unit General Manager Update Report August 2024 (R28727) and its Attachment (1399367370-8789); and 2. Approves a decrease in the light waste fee from $512 per tonne to $375 per tonne in the 2024/2025 Nelson Tasman Regional landfill Business Unit Business Plan; and 3. Approves the final Nelson Tasman Regional landfill Business Unit 2024 – 2034 Activity Management Plan (1399367370-8789) to be sent to the Nelson City Council and Tasman District Council for adoption. |
Recommendation to Nelson City Council and Tasman District Council
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That the Nelson City Council and Tasman District Council 1. Adopts the final Nelson Tasman Regional Landfill Business Unit 2024 – 2034 Activity Management Plan (1399367370-8789). |
7. Nelson Tasman Regional Landfill Business Unit Carryover Report 2023/2024 129 - 134
Document number R28701
Recommendation
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That the Nelson Tasman Regional Landfill Business Unit 1. Receives the report Nelson Tasman Regional Landfill Business Unit Carryover Report 2023/2024 (R28701); and 2. Approves the carryover of capital and renewals budget ($2.209M) from the 2023/24 financial year to the 2024/25 financial year to ensure continuation of urgent and planned works. |
8. Nelson Tasman Regional Landfill Business Unit Draft Business Plan 2025/2026 135 - 166
Document number R28728
Recommendation
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That the Nelson Tasman Regional Landfill Business Unit 1. Receives the report Nelson Tasman Regional Landfill Business Unit Draft Business Plan 2025/2026 (R28728) and its Attachment (1399367370-10512); and 2. Approves the Nelson Tasman Regional Landfill Business Unit Draft Business Plan 2024/2025 (1399367370-10512) for presentation to the Nelson City Council and Tasman District Council with delegation of all minor amendments to the Nelson Tasman Regional Landfill Business Unit Chairperson and General Manager. |
Recommendation to Nelson City Council and Tasman District Council
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That the Nelson City Council and Tasman District Council 1. Receives the Nelson Tasman Regional Landfill Business Unit Draft Business Plan 2025/2026 (1399367370-10512) for review and provide feedback to the Nelson Tasman Regional Landfill Business Unit, if required. |
9. Nelson Tasman Regional Landfill Business Unit Annual Report 2023 -2024 167 - 215
Document number R28730
Recommendation
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That the Nelson Tasman Regional Landfill Business Unit 1. Receives the report Nelson Tasman Regional Landfill Business Unit Annual Report 2023 -2024 (R28730) and its Attachments (1399367370-10513 and 749984575-1602); and 2. Approves the Nelson Tasman Regional Landfill Business Unit 2023/24 Annual Report (R28730) and its Attachments (1399367370-10513 and 749984575-1602) for presentation to Nelson City Council and Tasman District Council. |
Recommendation to Nelson City Council and Tasman District Council
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That the Nelson City Council and Tasman District Council 1. Receives the report Nelson Tasman Regional Landfill Business Unit Annual Report 2023 -2024 (R28730) and its Attachments (1399367370-10513 and 749984575-1602). |
Confidential Business
Recommendation
That the Nelson Tasman Regional Landfill Business Unit
1. Excludes the public from the following parts of the proceedings of this meeting.
2. The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:
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Item |
General subject of each matter to be considered |
Reason for passing this resolution in relation to each matter |
Particular interests protected (where applicable) |
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1 |
Nelson Tasman Regional Landfill Business Unit Meeting - Confidential Minutes - 17 May 2024 |
Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7. |
The withholding of the information is necessary: · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities |
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2 |
Nelson Tasman Regional Landfill Business Unit Beneficial Reuse of Contaminated Soil Facility Update |
Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7 |
The withholding of the information is necessary: · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities |
Item 5: Confirmation of Minutes 17 May 2024
Minutes of a meeting of the
Nelson Tasman Regional Landfill Business Unit
Te Rōpū ā-Rohe Ruapara, Whakatū / Te Tai o Aorere
Held in the Council Chamber, Floor 2A, Civic House, 110 Trafalgar Street, Nelson on Friday 17 May 2024, commencing at 9.30a.m.
Present: Deputy Mayor of Tasman S Bryant (Chairperson), Tasman District Councillor T Walker, Nelson City Councillor M Courtney (Deputy Chairperson), Nelson City Councillor A Stallard and Iwi Representative A Stephens
In Attendance: General Manager Regional Services (N Clarke) and Team Leader Governance (R Byrne)
Apologies : Nil
1. Apologies
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 15 March 2024
Document number M20493, agenda pages 6 - 9 refer.
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Resolved RLBU/2024/008 |
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That the Nelson Tasman Regional Landfill Business Unit 1. Confirms the minutes of the meeting of the Nelson Tasman Regional Landfill Business Unit, held on 15 March 2024, as a true and correct record. |
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Courtney/Walker Carried |
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5.2 3 May 2024
Document number M20551, agenda pages 10 - 12 refer.
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Resolved RLBU/2024/009 |
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That the Nelson Tasman Regional Landfill Business Unit 1. Confirms the minutes of the meeting of the Nelson Tasman Regional Landfill Business Unit, held on 3 May 2024, as a true and correct record. |
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Walker/Courtney Carried |
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6. Nelson Tasman Regional Landfill Business Unit General Manager Update Report
Document number R28530, agenda pages 13 - 26 refer.
General Manager Regional Services, Nathan Clarke spoke to his report and answered questions on Health and Safety liabilities, consent applications and current contracts.
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Resolved RLBU/2024/010 |
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That the Nelson Tasman Regional Landfill Business Unit 1. Receives the report Nelson Tasman Regional Landfill Business Unit General Manager Update Report (R28530). |
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Walker/Courtney Carried |
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7. Exclusion of the Public
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Resolved RLBU/2024/011 |
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That the Nelson Tasman Regional Landfill Business Unit 1. Excludes the public from the following parts of the proceedings of this meeting. 2. The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows: |
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Courtney/Stallard Carried |
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Item |
General subject of each matter to be considered |
Reason for passing this resolution in relation to each matter |
Particular interests protected (where applicable) |
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1 |
Nelson Tasman Regional Landfill Business Unit Meeting - Confidential Minutes - 15 March 2024 |
Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7. |
The withholding of the information is necessary: · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) |
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2 |
Nelson Tasman Regional Landfill Business Unit Gas Reuse Update Report |
Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7 |
The withholding of the information is necessary: · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities |
The meeting went into confidential session at 10.41a.m. and resumed in public session at 11.21a.m.
There being no further business the meeting ended at 11.21a.m.
Confirmed as a correct record of proceedings by resolution on (date)
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Resolved |
Item 6: Nelson Tasman Regional Landfill Business Unit General Manager Update Report August 2024
Nelson Tasman Regional Landfill Business Unit
16 August 2024
Report Title: Nelson Tasman Regional Landfill Business Unit General Manager Update Report August 2024
Report Author: Nathan Clarke - General Manager Regional Sewerage and Landfill
Report Authoriser: Alec Louverdis - Deputy Chief Executive / Group Manager Infrastructure
Report Number: R28727
1. Purpose of Report
1.1 This report is an update by the General Manager (GM) on activities undertaken to 30 June 2024 by the Nelson Tasman Regional Landfill Business Unit (NTRLBU).
1.2 The report also includes a recommendation to Nelson City Council and Tasman District Council to adopt the 2024 – 2034 NTRLBU Activity Management Plan (AMP).
Recommendation to the Nelson City Council and Tasman District Council
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That the Nelson City Council and Tasman District Council 1. Adopts the final Nelson Tasman Regional Landfill Business Unit 2024 – 2034 Activity Management Plan (1399367370-8789). |
3. Background and Discussion
3.1 The Landfills Operations and Maintenance Contract (C3912) was completed on 30 June 2024, and a new Regional Landfills Operations Contract (C133933) commenced operations on 1 July 2024.
3.2 During the last three month of the operations contract few additional works were undertaken as part of the contract and the operations performed smoothly.
3.3 The new landfill compactor was purchased and prepared ready for commencing operations at the commencement of the new Regional Landfills Operations contract.
3.4 Contractor weekly safety and co-ordination meetings are continuing to occur onsite where all contractors and NTRLBU representatives meet to discuss work safety, vehicle management and other hazards, and this process is running effectively. The NTRLBU permitting systems have resulted in improved management of risks associated with gas works.
3.5 The temporary transfer facility was constructed at the end of the period and was ready to commence operation at the commencement of the new Regional Landfills Operations Contract. Work on refining the design is ongoing and some improvement may be required to increase waste transfer productivity.
3.6 The dry weather has allowed excellent progress on the leachate and buttress capital works upgrades, with the leachate system and bulk earthworks complete. Soil stabilisation works and minor changes to access roads and stormwater swales were completed, however cold weather has slow the establishment of the vegetated surfaces.
3.7 Earthworks undertaken as part of the buttress works have identified areas on geotechnical instability in the land behind the landfill. One of these areas of the southern side of the landfill begun subsiding. Temporary remedial works was implemented to stabilise the area, and a design is being developed to allow permanent resolution of the instability on the eastern side of the landfill.
3.8 Geotechnical assessments for Gullies 2 and 3 for the new regional landfill consent application were undertaken and an interpretive memo is being produced that will inform the consenting strategy for future regional landfill development.
3.9 The NTRLBU preliminary finances excluding end of year accounting adjustments show a deficit of $537,665 for the 2023/24 financial year to 30 June 2024.
3.10 Overall landfill operational budgets and expenditure are in line with previous period projections.
3.11 An emerging matter that the Committee needs to be aware of is that the departing operations and maintenance contractor has notified NTRLBU of several significant variations they believe they are entitled to under the contract. These matters are being worked through.
4. Health and Safety
4.1 There was an incident where an excavator overturned at Eves Valley landfill while undertaking vegetation control works during the period. There were no injuries, but the excavator was damaged in the incident.
4.1.1 The contractors stopped work and the incident was investigated promptly by the contractor, and a range of remedial actions were put in place as a result of the investigation.
4.1.2 The investigation identified that operator experience was a contributing cause to the incident.
4.1.3 The NTRLBU is satisfied that the incident was taken seriously by the contractor. Immediate responses were implemented and detailed investigations, operator training, and improvement actions were quickly implemented.
4.1.4 The actions taken will reduce the likelihood of a similar event occurring in future, and the investigation has resulted in NTRLBU recommending procedural improvements to the contractor which will reduce the likelihood of the contractor having an incident of this type again.
4.2 List of additional H&S incidents reported during the period are shown in the below table.
5. Stormwater discharge non-compliance event
5.1 NTRLBU received two discharge consent infringement notices and were fined $750 dollars for each event.
5.2 Both incidents occurred earlier in the year, but the infringement notices have been issued following investigation into the causes of the incidents.
5.3 One sediment discharge occurred in April when debris blocked the chemical dosing pumps on the stormwater treatment system at the York Valley landfill.
5.4 The second incident resulted from a NTRLBU member staff misunderstanding monitoring and sampling requirements and opening the discharge valve to take a sediment sample at a time when the pond was out of specification.
5.5 NTRLBU informed the NCC compliance team of the issues, and an investigation report was prepared by NTRLBU reviewing the sequence of events.
5.6 This investigation report was provided to the consenting authority along with actions proposed to limit the issues from occurring in future.
5.7 The NCC team issued infringement notices and fines to NTRLBU for the breaches of consent.
6. Operations and Maintenance Contract Renewal
6.1 The new Regional Landfills Operations Contract commenced on 1 July 2024
6.2 The new Tana E520 compactor has commenced operation and indicative compaction data suggests an increase in compaction from 0.78 tonnes per m3 to around 0.94 tonnes per m3.
6.3 The increase in density could result in an additional three years of landfill life. This could accommodate additional waste worth approximately $70 million at 2024/2025 disposal rates.
6.4 The temporary transfer facility construction has been undertaken; the facility is a simple flat concrete dump pad surrounded by mass concrete blocks.
6.5 The system has commenced operations and has significantly reduced vehicle turnaround times, reduced mud on the local roads, and provides a safe area on which trucks can unload.
7. Update on projects.
7.1 A range of projects have been implemented over the last period.
7.2 The principal projects for the 2023/24 construction season were the lower buttress and leachate system implementation at York Valley, the HAIL management and disposal facility development for the Eves Valley Landfill and the gas reuse system development and installation for the Eves Valley Landfill.
7.3 The HAIL management facility (Class 3 Landfill) proposed for Eves Valley landfill has been held up awaiting the completion of the Eves Valley Stage 2 resource consent renewal.
7.4 NTRLBU have been delayed in finalising the scope for the Eves Valley gas reuse system.
7.5 Delays were incurred for the Eves Valley Gas system due to changes in gas composition and flow that occurred unexpectedly during the dry summer period.
7.6 Battery Recycling bin development progress.
7.6.1 Some additional progress has been made on the battery collection bins, with testing of how the bins react to two different fires scenarios.
7.6.2 NTRLBU tested the bins under controlled conditions at a quarry. Temperature and pressure data were collected during the tests and video footage was collected on how the bin acted under these two conditions.
7.6.3 The first set of conditions simulated a fire caused by “vandalism,” the fire included litter being inserted into the bin along with an accelerant, and then the bin being set fire.
7.6.4 The second set of conditions was to fill the bin to one-third capacity with lithium-ion batteries and pierce one of the batteries to simulate a battery failure. This scenario was trialled to simulate what would happen if the bin was in service in the community and a battery failed in the bin while it contained batteries.
7.6.5 The results of the testing are being reviewed to identify any risks and/ or improvements required to the bins, and a redesign of the fire suppression system has been undertaken.
7.6.6 A second round of performance tests will be undertaken to test the new fire suppression system design.
8. Eves Valley Stage 2 Consent
8.1 Further work is required to revise the draft consent conditions received for the Eves Valley Stage 2 resource consent.
9. Deed of Agreement and Terms of Reference Review
9.1 Both Councils are still working on revising the current Regional Landfill’s Terms of Reference to, amongst other things, firstly align with its Deed of Agreement and secondly to ensure compatibility with the NRSBU’s Memorandum of Understanding with respect to deliverable timelines and milestone relating to matters such as Business Plans and Activity Management Plans. When work is further advanced it will come back to the Committee.
10. Odour Management
10.1 NTRLBU had one odour notification during this period. The notification came during still, damp, conditions. Site staff investigated the odour and could not identify a cause.
10.2 An independent odour assessor undertakes a two-weekly assessment of the odour and noise around the landfill, and his visits have not identified any unusual odours on the site.
11. Stormwater Management
11.1 Stormwater infringement fines were received during the period for two sediment discharges that occurred earlier in the year.
11.2 NTRLBU has implemented some additional automation changes to the stormwater treatment system to improve performance.
11.3 An external expert has been engaged to support NTRLBU in reviewing the current plans and activities to recommend improvements.
12. Litter Management
12.1 There were no litter complaints during the period.
12.2 The exterior litter fence netting installation has been installed around the southwestern edge of the landfill.
13. Emission Management
13.1 The NTRLBU gas management system at York Valley Landfill has continued to operate effectively with the new ring main and new condensate removal system. Some site works have required sections of the gas system to be disconnected during this period and gas collection volumes have reduced as a result, however gas capture and destruction is still at a level higher than to the same period of last year.
13.2 A recent gas status report is shown below.
13.3 Work is ongoing on the business case and market research and a concept plan is being developed for the reuse options for the remainder of the gas at the York Valley Landfill.
14. Emissions Trading Scheme Position
14.1 The ETS unit price is currently around $51 per unit.
14.2 Our current holding of 155,569 units has an average cost of $43.45 per unit.
14.3 Our current New Zealand Unit (NZU) holding and movements.
Units on Hand 31 January 2024 148,329
Units surrendered for 2023 7,239
Balance after surrender 141,090
14.4 Treasury policy limit, assuming a Unique Emission Factor of 0.21 and budgeted waste volumes is 45,353 units.
14.5 Current holding is 94,737 units more than policy due to the reduction in the UEF achieved in 2022 and in 2023.
14.6 The NTRLBU and the Councils have approved the sale of 50,000 NZUs and delegated the timing of the sale to the General Manager of NTRLBU.
14.7 At present it is proposed that NTRLBU do not sell until there is more understanding of the NZ Governments position on climate change actions, and how this might affect future ETS prices, the Default Emission Factor, and the future NTRLBU ETS liability.
15. Waste Minimisation
15.1 These are the primary activities going on with waste minimisation for NTRLBU at present.
15.1.1 Battery diversion, this is ongoing and has reduced the number of battery fires that NTRLBU has been experiencing with only two in the last period and nine over the last 12 months.
15.1.2 Supporting the development of the Joint Waste Minimisation and Management Plan (JWMMP), NTRLBU are working with NCC and TDC staff to support the development of the JWMMP.
15.1.3 The new Regional Landfills Operations Contract (C133933) has commenced, and this includes incentives for diversion of waste from landfill.
16. Light Waste Fee
16.1 Feedback from customers regarding loose contaminated sawdust disposal at York Valley landfill has identified that doubling the light waste (sawdust) fee has resulted in unintended consequence that the General Manager believes should be rectified.
16.2 Large disposers of sawdust have indicated that they will start to cart sawdust to other landfills rather than discharge to the York Valley Landfill due to the excessive cost that the new light waste fee incurs.
16.3 The light waste fee was increased to reflect the increased volume used by light waste in the landfill, and to encourage alternative products to be used to treat that would allow sawdust to be used for other purposes.
16.4 NTRLBU did not consider whether the effect of the price increase would be trucking wastes approximately 260km more to a different landfill that has a less effective gas system that the York Valley landfill.
16.5 It is therefore considered appropriate to lower the fee to a level that will not encourage large disposers to cart long distances to less effective disposal facilities.
16.6 The GM has sought advice from experience cartage contractors on the cost to cart and has established that a fee of around $375 is unlikely to result in the perverse outcome occurring.
16.7 The effect of lowering the fee for light waste is not significant to NTRLBU as it was assumed when budgeting that the higher fee would result in this waste being reused for other purposes and not being received at York Valley landfill.
16.8 As such this changed fee will not significant effect financially on NTRLBU.
16.9 Options for light waste fee change - Officers recommend option 1.
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Option 1: Approve the fee change- recommended option |
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Advantages |
· The fee change will reduce unintended consequences of the sawdust fee increase. · Greenhouse gas emission reductions will be better managed by NTRLBU accepting the waste at a lower fee compared to trucking to an alternative landfill with a less effective gas management system. · There will be some additional revenue for the business unit from the ongoing disposal of sawdust that was not anticipated in the Business plans. |
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Risks and Disadvantages |
· Landfill airspace will be consumed. |
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Option 2: Do not approve the fee change |
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Advantages |
· Less waste will be received at York valley landfill, and less airspace will be consumed.
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Risks and Disadvantages |
· Waste will likely be trucked long distances to a different landfill. This activity will use more fossil fuels, will add wear and tear to roading infrastructure, and the emissions from the alterative landfill will be higher than would arise from NTRLBU facility due to NTRLBUs more effective gas capture and destruction system. · The NTRLBU could be criticised for not acting to mitigate an issue once the issue was identified. |
17. Landfill Waste Volumes
17.1 Landfill volumes have significantly reduced compared to previous years with this year’s waste being around 7500 tonnes less year for the 2023/24 financial year than 2022/23. This decrease in waste mass is thought to be principally related to a reduction in commercial and industrial activity.
17.2 Airspace development activities undertaken during the period have resulted in an additional 35,000m3 of airspace being developed. This airspace can accept around $9 million worth of waste at the current landfill gate price.
18. Risk Management
18.1 NTRLBU considers its risks on an ongoing basis, as risks on the site frequently change because of additional information or changes to operations.
18.2 This section has been added to outline some strategic and tactical risks facing the landfill at present. It is not intended to be comprehensive or to outline all risks, rather highlight a few risks at the current time.
18.2.1 Reporting Compliance – NTRLBU needs to implement revised reporting by 1 July 2024 to meet changing Ministry for the Environment requirements. Current expectation is that new landfill weighbridge software will be implemented and commence operations on 1 August that will allow the correct data to be collected. There is a risk that delays, or weighbridge data issues could occur as a result of the condensed timeframe for the change.
18.2.2 Slip Risk – the land surrounding the landfill has historically been unstable and several slips have occurred around the site during the life of the landfill. A significant slip has recently activated in the southern side of the landfill, and remedial actions are being undertaken to stabilise the area. An ongoing risk of further impact from slips around the landfill remains. The principal risks associated with landslide relate to Health and Safety of personnel, maintaining unconstrained landfill access, and financial costs to remedy the slips.
18.3 Stormwater management – NTRLBU has upgraded the landfill sediment retention ponds and has improved stormwater channels and other services. There have however been occurrences where the sediment load from the system has exceeded the resource consent parameters due to the intensity and duration of the rain events, and the larger earthworks projects being undertaken on the site. NTRLBU is actively stabilising soils and implementing actions to reduce the sediment load and reduce the catchment area requiring treatment in the onsite sediment ponds.
19. NTRLBU Finances
19.1 Income Account for the period to 30 June 2024
19.2 The budget year to date shows NTRLBU is $537,849 below budget.
19.3 Operational costs are above budget with increased costs associated with a range of different activities.
19.4 Costs for works achieving airspace gains made during the year also sit within the operational budget due to the NTRLBU accounting processes.
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20. Important considerations for decision making |
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20.1 Fit with Purpose of Local Government The NTRLBU is a joint committee constituted pursuant to the provisions of Schedule 7 to the Local Government Act 2002 and contributes to the four Local Government well-beings of social, economic, environmental, and cultural. |
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20.2 Consistency with Community Outcomes and Council Policy The General Manager reports consider the actions being taken to implement the NCC and TDC Annual Plans and business plans. |
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20.3 Risk This report includes consideration, allowance, or mitigation of environmental and business continuity risks. The risk of not approving the report is that this could delay the NRSBU implementing the works outlined. |
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20.4 Financial impact The report has little financial impact on NTRLBU. |
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20.5 Degree of significance and level of engagement The report includes review of action undertaken during the year by the NTRLBU and one change of fee that will affect a small subset of customers. The actions are historic and have no significant influence on NTRLBU going forward. It is not considered significant to the Councils. |
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20.6 Climate Impact A key feature of the NTRLBU Business Plans and annual work program are projects that work toward mitigation of greenhouse gas emissions. This report considers actions taken to mitigate climate emissions. |
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20.7 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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20.8 Delegations The Deed of Agreement for the Nelson-Tasman Regional Landfill Business Unit (Deed), signed on the 28 April 2017 by the two Mayors and the two Chief Executives of each of the two Council’s (Nelson and Tasman) assigns the delegations (as shown in the extract from the Deed - namely Clause 14 below) to the Joint Nelson-Tasman Regional Landfill Business (NTRLBU). These delegations are in addition to NTRLBU having powers to decide the setting of fee and charges at the regional landfill, and to accept (or not accept) waste from outside the Nelson/Tasman region as reflected in the Delegations Register (pages 25/26). These delegations as set out in the Deed are consistent with the delegations given to the NRSBU on the same matters – specifically designed to ensure consistency. Clause 1.3 of the Delegations Register notes: “The general principle is that Council retains all responsibilities, duties, functions, and powers that must be exercised by Council and where delegations are prevented by legislation. It may also retain certain key responsibilities, duties, functions, and powers that it wishes to exercise. All other responsibilities, duties, functions, and powers may be delegated to a committee, sub-committee, or other subordinate decision-making body or, where not retained by Council, are delegated to the Chief Executive. In addition, Section 3 of the Delegations Register details Delegations from Council to the Chief Executive. On this basis the NTRLBU (and consistent with the NRSBU) is deemed to have the authority to enter into all contracts necessary for the operation and management of the NTRLBU in accordance with the approved budgets and intent of the Business Plan. Responsibilities delegated to the NTRLBU 14. The Councils agree that responsibility for all management and administrative matters associated with the operation of the Joint Committee shall be delegated to the NTRLBU. The NTRLBU may without the need to seek any further authority from the Councils: (i) operate a bank account for the NTRLBU. (ii) enter into all contracts necessary for the operation and management of the NTRLBU in accordance with the approved budgets and intent of the Business Plan and the 'Procurement guidance for public entities' as produced by the Office of the Auditor General. (iii) authorise all payments necessary for the operation and management of the NTRLBU within the approved budgets and intent of the Business Plan. (iv) do all other things that are necessary to achieve the objectives as stated in the Joint Waste Plan, Long Term Plan, Activity Management Plan or Business Plan approved by the Councils, including setting terms of trade and acceptance criteria for waste to landfills. (v) comply with applicable Health and Safety legislation, and standing orders and administrative requirements of the administering Council. (vi) comply with all regulatory requirements concerning operation of the regional landfill facilities. |
21. Conclusion
21.1 Operations at York Valley have been running effectively, and transition to the new Regional Landfills Operations Contract occurred on 1 July 2024.
21.2 The period was successful for NTRLBU on active construction projects, with the lower buttress and leachate resilience works being completed during the period.
21.3 Progress has been delayed on gas reuse actions and contaminated soil management actions for a range of reasons and the remaining funding for these projects will need to be carried over to the 2024/2025 financial year.
21.4 Overall, around 80% of the capital projects were implemented during the year.
Attachments
Attachment 1: 1399367370-8789 Nelson Tasman Regional Landfill Business Unit 2024 - 2034 Activity Management Plan ⇩
Item 6: Nelson Tasman Regional Landfill Business Unit General Manager Update Report August 2024: Attachment 1
Item 7: Nelson Tasman Regional Landfill Business Unit Carryover Report 2023/2024
Report Title: Nelson Tasman Regional Landfill Business Unit Carryover Report 2023/2024
Report Author: Nathan Clarke - General Manager Regional Sewerage and Landfill
Report Authoriser: Alec Louverdis - Deputy Chief Executive / Group Manager Infrastructure
Report Number: R28701
1. Purpose of Report
1.1 To consider and approve the capital carryover requirements from the 2023/24 financial year to 2024/25.
2. Summary
2.1 A significant amount of capital upgrading work commenced and was completed during the 2023/24 financial year. Some work was delayed due to changes that required additional investigations to be undertaken and as this work is still necessary and has commenced, carry over from 2023/24 to 2024/25 to allow this work to be completed is required.
4. Background and Discussion
4.1 NTRLBU has had a successful year continuing to deliver challenging renewals and expenditure programme during the 2023/24 financial year.
4.2 Officers generally approach capex projects with a three-year process, allowing a year for concept development, a year for detailed design and consenting (if required), and a year for construction.
4.3 Business unit started the year with resource levels lower than needed to meet the programmed work and external support was engaged from consultants with some delivery timeframes extended.
4.4 A significant volume of capital and renewal physical work has been completed during 2023/24. A carry over of $2,209,109 from a capital budget of $10,160,000 is required representing approximately 20% of the capital works budget.
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Full Budget 2023/ 24 |
Total spend 2023/24 |
Carryover to 24/25 |
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Capital |
$9,465,008 |
$7,255,899 |
$2,209,109 |
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2023/2024 Carry Over |
$695,000 |
$695,000 |
$0 |
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Combined Capital and Renewals |
$10,160,008 |
$7,950,899 |
$2,209,109
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4.7 Specifics of notable capital projects completed are as follows:
4.7.1 York Valley Stability: The lower buttress was completed, enabling the landfill to significantly increase its earthquake resilience, and to allow the stability to be sufficiently high to create additional landfill capacity.
4.7.2 Investigation and consents for stage 2 and 3 as regional site (Eves), and Gully’s 2 and 3 at York has progressed. Geotechnical investigations in Gully’s 2 and 3 have been undertaken and an interpretive memo generated. A consenting strategy has been developed, along with economic considerations on different landfill options. Planning for the consent for the next landfill (after York Valley Gully 1) continues, and this will involve significant work over the next two years.
4.7.3 York Valley Leachate Upgrade was completed during the year, and this significantly increases the resilience of the York Valley Gully 1 Leachate system.
4.7.4 Negotiations were started with the Nelson Hospital on the ongoing sale of gas, this included consideration of the alternative uses for gas and gas pricing assessments. This work is ongoing.
4.7.5 York Valley stormwater control: some additional works were needed during the year, with additional rock lined channels installed to manage stormwater around the lower buttress and the south-eastern side of the landfill.
5. Options
5.1 Two options have been considered for the carryover – approving the carryover or not approving the carryover. Officers support option 1 – approving the carryover to allow completion of works.
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Option 1: Approve the carryover - recommended option |
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Advantages |
· The capital projects will be able to continue. · Upgrades will be possible to reduce environmental concerns related to the current landfill operations. · Planning and actions will be able to be completed to develop the future landfill operations and reduce current and future risks. · Greenhouse gas emission reductions, and Contaminated soil management will be able to be addressed. · Landfill airspace will be enhanced, resulting in reduced landfill waste disposal costs. · Future workload for staff will be reduced. |
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Risks and Disadvantages |
· Regional Service staff will have a higher workload delivering the capital projects. |
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Option 2: Do not approve the carryover |
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Advantages |
· Less immediate stress of Regional Service staff. |
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Risks and Disadvantages |
· The works have been commenced and therefore will need to be funded from the current financial year budgets, which may adversely affect other planned activities. |
6. Conclusion
6.1 It is recommended that $2,209,109 of renewals and capital funds will be carried forward into 2024/25 financial year.
6.2 Expenditure of these funds is programmed for completion in 2024/25.
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7. Important considerations for decision making |
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7.1 Fit with Purpose of Local Government The NTRLBU is a joint committee constituted pursuant to the provisions of Schedule 7 to the Local Government Act 2002 and contributes to the four Local Government well-beings of social, economic, environmental, and cultural. |
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7.2 Consistency with Community Outcomes and Council Policy Our infrastructure is efficient, cost effective and meets current and future needs. |
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7.3 Risk The risk of not approving the carry-overs is that urgent and planned works will not be able to be undertaken and works already underway will not be able to be completed. This would likely result in consent non-compliance. |
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7.4 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. |
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7.5 Degree of significance and level of engagement The NTRLBU is a Joint Committee of the two Councils and its activities are included in the Long-term Plans and Annual Plans of each Council. Consultation is undertaken by both Councils in the preparation and adoption of these plans. |
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7.6 Climate Impact A key feature of the capital programme is the ability to implement systems to reduce greenhouse gas emissions and environmental issues. Carryover of funds allows these programmes to continue. |
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7.7 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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7.8 Delegations The Deed of Agreement for the Nelson-Tasman Regional Landfill Business Unit (Deed), signed on the 28 April 2017 by the two Mayors and the two Chief Executives of each of the two Council’s (Nelson and Tasman) assigns the delegations (as shown in the extract from the Deed - namely Clause 14 below) to the Joint Nelson-Tasman Regional Landfill Business (NTRLBU). These delegations are in addition to NTRLBU having powers to decide the setting of fee and charges at the regional landfill, and to accept (or not accept) waste from outside the Nelson/Tasman region as reflected in the Delegations Register (pages 25/26). These delegations as set out in the Deed are consistent with the delegations given to the NRSBU on the same matters – specifically designed to ensure consistency. Clause 1.3 of the Delegations Register notes: “The general principle is that Council retains all responsibilities, duties, functions, and powers that must be exercised by Council and where delegations are prevented by legislation. It may also retain certain key responsibilities, duties, functions, and powers that it wishes to exercise. All other responsibilities, duties, functions, and powers may be delegated to a committee, sub-committee, or other subordinate decision-making body or, where not retained by Council, are delegated to the Chief Executive. In addition, Section 3 of the Delegations Register details Delegations from Council to the Chief Executive. On this basis the NTRLBU (and consistent with the NRSBU) is deemed to have the authority to enter into all contracts necessary for the operation and management of the NTRLBU in accordance with the approved budgets and intent of the Business Plan. Responsibilities delegated to the NTRLBU 14. The Councils agree that responsibility for all management and administrative matters associated with the operation of the Joint Committee shall be delegated to the NTRLBU. The NTRLBU may without the need to seek any further authority from the Councils: (i) operate a bank account for the NTRLBU. (ii) enter into all contracts necessary for the operation and management of the NTRLBU in accordance with the approved budgets and intent of the Business Plan and the 'Procurement guidance for public entities' as produced by the Office of the Auditor General. (iii) authorise all payments necessary for the operation and management of the NTRLBU within the approved budgets and intent of the Business Plan. (iv) do all other things that are necessary to achieve the objectives as stated in the Joint Waste Plan, Long Term Plan, Activity Management Plan or Business Plan approved by the Councils, including setting terms of trade and acceptance criteria for waste to landfills. (v) comply with applicable Health and Safety legislation, and standing orders and administrative requirements of the administering Council. (vi) comply with all regulatory requirements concerning operation of the regional landfill facilities. |
Attachments
Item 8: Nelson Tasman Regional Landfill Business Unit Draft Business Plan 2025/2026
Report Title: Nelson Tasman Regional Landfill Business Unit Draft Business Plan 2025/2026
Report Author: Nathan Clarke - General Manager Regional Sewerage and Landfill
Report Authoriser: Alec Louverdis - Deputy Chief Executive / Group Manager Infrastructure
Report Number: R28728
1. Purpose of Report
1.1 To provide the Nelson Tasman Regional Landfill Unit (NTRLBU) Draft Business Plan 2025/26 (Draft Business Plan) and to seek approval of the Draft Business Plan for circulation to Nelson City Council (NCC) and Tasman District Council (TDC) for feedback.
2. Summary
2.1 The Draft Business Plan generally follows the works programme as outlined for 2025/26 in the NTRLBU Activity Management Plan 2024 – 2034 (AMP).
2.1.1 Capital expenditure has been included to allow mitigation of risks associated with landfill operations and personnel safety, to implement waste minimisation actions that will result in airspace savings and to implement gas reuse facilities that will create a return on investment for the NTRLBU.
2.1.2 The business objectives and performance measures of the Business Plan requires the NTRLBU to consider reuse of landfill gas including mitigation measures for board consideration in the business plan.
2.1.3 The business objectives and performance measures of the Business Plan requires that the NTRLBU includes an outline of the waste minimisation actions proposed, and the costs associated with these.
2.1.4 ETS costs have slightly increased as a result of changes to the NZETS system Default Emission Factor (DEF) for waste. NTRLBU has sufficient ETS credits on hand at an average cost of $43.50 to cover a number of years emission liability.
2.1.5 There is an ongoing risk that the NTRLBU may not be able to achieve the Unique Emission Factor (UEF) achieved during the 2022 calendar year due to changes proposed for the DEF for waste. The DEF is likely to be imposed on all waste disposed to the landfill over its full life, resulting in a significant change to the way emissions are calculated. Initial assessments done on previous year’s results suggests that NTRLBU will only be slightly affected by these changes due to our high capture and destruction efficiency, and the same (0.21) UEF has been assumed for budgeting purposes as was assumed during the 2023/2024 financial year.
2.1.6 In accordance with the process set out in the NTRLBU Terms of References, the Local Disposal Levy (LDL) costs in this budget are based on the information supplied by the Councils. The NTRLBU has asked both Council’s for their respective LDL’s for the 2025/26 financial year, but have yet to receive them, and the LDL used in the Draft Business Plan is based on the current LDL level.
2.2 The LDL has been assumed at $3.0M for each Council for the 2025/2026 financial year in the Draft Business Plan.
Recommendation to Nelson City Council and Tasman District Council
4. Background and Discussion
4.1 The NTRLBU Terms of Reference (TOR) outlines several activities required by the NTRLBU along with specified timing for these activities.
4.2 The TOR requires that the NTRLBU prepares a Draft Business Plan and that this be presented to the Councils by 31 October each year.
4.3 The NTRLBU will consider any feedback provided by the Councils on the Draft Business Plan, plus any updates or new information, present these to the Committee with the aim of presenting the revised business plan to both councils by 31 May prior to the start of the new financial year.
5. Operational Costs
5.1 The costs to run the NTRLBU will continue to increase during the 2025/26 financial year.
5.2 Additional costs include:
5.2.1 Operating costs associated with changing the operation of the landfill to include a transfer facility for safety improvements. This will eliminate the significant vehicle on vehicle and pedestrian safety risks from the tip face.
5.2.2 Those resulting from the Waste Minimisation Levy increasing from to $60/tonne in 2024/25 to $65/tonne in 2025/26.
5.2.3 Increased interest charges, due to additional debt being serviced, and increased interest rates on the debt.
5.2.4 Additional depreciation associated with the assets constructed during the 2024/25 financial year.
5.3 The ETS costs have ongoing uncertainty due to the NZ government adjusting the emission factors, and ETS costs have been assumed at a slightly conservative level based on an initial assessment of the effect of the ETS changes.
5.4 Costs for consulting fees have been decreased as the NTRLBU has its staff roles filled. Review of staffing will be necessary once the design of the gas reuse systems is developed fully.
6. Capital Works Programme
6.1 The Draft Business Plan includes:
6.1.1 Stormwater upgrades at York Valley to accommodate the increased height of the landfill and to manage separation of stabilised catchments from the sediment laden stormwater catchments.
6.1.2 Gas reuse design works and upgrades associated with development of the York Valley gas reuse system.
6.1.3 Budget for continuing the extension of the York Valley Gully 1 consent and developing the new regional landfill consent.
6.1.4 The York Valley landfill transfer facility to improve personnel safety
6.1.5 Funding to allow completion of the Eves Valley gas reuse facility.
6.2 The capital expenditure for greenhouse gas mitigation is required to allow the ongoing implementation of improvements to the gas management system.
6.3 This work will allow NTRLBU to continue to reduce its actual carbon emissions and reduce the cost to the community of those carbon emissions. Additional funding has been included continue the development of the gas reuse option at the Eves Valley landfill.
6.4 The overall effect of the changes to the draft Business Plan will see an increase in landfill fees from $250 per tonne to $266 per tonne excluding GST for general wastes. This equates to an increase of 6.4%.
7. Landfill increase compared to planned increase in 2024- 2034 AMP
7.1 This proposed increase is higher than the fee outlined in the 2024 – 2034 AMP and reflects the increased $5 per tonne cost associated with Ministry for the Environment Waste Minimisation Levy, additional costs associated with inflation and depreciation, and the cost for operating the contaminated soil disposal facilities.
7.2 The proposed 6.4% increase in landfill fee is less than the projected CPI inflation over the period since the preparation of the AMP (Consumer Price Index increase of 5.1%) and includes an allowance for inflation for the 2024/2025 financial year.
7.3 The proposed landfill gate fee of $266 per tonne is higher than the 2024-2034 AMP by approximately $11/tonne. This additional $11/tonne is partly related to the additional $5/tonne waste minimisation levy imposed by MFE which was not previously anticipated at the time of the preparation of the 2024 -2034 NTRLBU AMP.
7.4 Additional operating costs are included to cover the additional budget required for New Regional Landfills Operations Contract. The tendered prices received were above the budget allowance.
8. How do Landfill fees compare to other locations in NZ
8.1 A review of landfill fees in other New Zealand landfills has shown that the York Valley landfill has fees that are in line with fees charged at other landfills. The table below shows the landfill fees (including GST) for landfills in 2023/2024.
Figure 1- Comparison of Landfill Fees (GST inclusive)
8.2 As a comparison to the above table, the York Valley 2025/26 fee will be $306 per tonne (including GST). It is expected that other landfills will include the additional $5 waste minimisation levy cost onto their 2024/25 fees which would raise these by at least $5 plus GST per tonne.
9. Options
9.1 The following table outlines three options for the NTRLBU Draft Business Plan. Officers support option 3.
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Option 1: Do not adopt the draft Business Plan |
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Advantages |
· There are no advantages. |
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Disadvantages |
· NTRLBU will not be meeting the requirements of the Terms of Reference adopted by Nelson City and Tasman District Councils. · NTRLBU will not have approval to continue its works programme. · NTRLBU will not meet its legal requirements, capital works programme, health and safety obligations or emissions reductions. · NTRLBU does not implement waste minimisation and diversion options. · Ongoing issues will remain with contaminated soil waste due to the high cost for responsible disposal of these materials. · No additional revenue will be realised from the gas, and this energy will be wasted. |
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Option 2: Request amendments to the draft Business Plan prior to submission to NCC and TDC for feedback. |
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Advantages |
· Allows the NTRLBU board to consider and modify the scope of proposed capital works or the timing of the proposed capital works associated with waste minimisation activities and gas reuse. |
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Risks and Disadvantages |
· If significant changes are made, the revised Business Plan will not be available in time to meet the 31 October due date required by both Councils in the NTRLBU Terms of Reference. · May require rework of the plan and approval of the revised plan if significant changes are made to the scope or timing of the capital works. |
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Option 3: Adopt the draft Business Plan and submit to NCC and TDC for feedback – recommended option. |
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Advantages |
· Allows the implementation of plans for Waste minimisation, gas reuse, and emission reductions and diversion of contaminated soil wastes. · Improves operational certainty for the landfill and further safeguards airspace for general waste use. · Reduces barriers to responsible disposal of contaminated soil wastes. · Will allow the implementation of safety improvements to high-risk areas of the landfill. · Allows ongoing implementation of greenhouse gas mitigation works. |
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Risks and Disadvantages |
· Requires additional capital expenditure. |
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10. Important considerations for decision making |
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10.1 Fit with Purpose of Local Government The NTRLBU is a joint committee constituted pursuant to the provisions of Schedule 7 to the Local Government Act 2002 and contributes to the four Local Government well-beings of social, economic, environmental, and cultural. |
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10.2 Consistency with Community Outcomes and Council Policy The NTRLBU Business Plan feed into the NCC and TDC Annual Plans and the business plan has been prepared based on the NTRLBU 2024 -2034 Activity Management Plan and incorporating additional information not available at the time the AMP was prepared. |
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10.3 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 waste management in the Nelson Tasman Region. |
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10.4 Financial impact The NTRLBU 2025/26 fees reflect an increase in essential renewals expenditure and implementation of the landfill airspace and stability works. It also includes works to further reduce climate emissions, and beneficially reuse landfill gas, and options for diverting waste from the landfill to reduce airspace. These activities allow ongoing safe operation of the landfill and allow it to provide ongoing disposal services to the community |
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10.5 Degree of significance and level of engagement The NTRLBU plans include capital expenditure which will result in a reduction in future fee increases. The additional capital expenditure has been spread over three years to reduce the impact on NTRLBUs owners. While this business plan is significant to NTRLBU, and results in a reduction in future landfill charge increases and is fully funded by the gate fees received, including covering the cost of interest and principal repayments on the additional capital expenditure. It is not considered significant to the Councils. |
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10.6 Climate Impact A key feature of the NTRLBU Business Plan are projects that work toward mitigation of greenhouse gas emissions. This includes physical works for gas reuse, and opportunities to develop projects to divert a significant fraction of organic waste from landfill for energy production. |
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10.7 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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10.8 Delegations The Deed of Agreement for the Nelson-Tasman Regional Landfill Business Unit (Deed), signed on the 28 April 2017 by the two Mayors and the two Chief Executives of each of the two Council’s (Nelson and Tasman) assigns the delegations (as shown in the extract from the Deed - namely Clause 14 below) to the Joint Nelson-Tasman Regional Landfill Business (NTRLBU). These delegations are in addition to NTRLBU having powers to decide the setting of fee and charges at the regional landfill, and to accept (or not accept) waste from outside the Nelson/Tasman region as reflected in the Delegations Register (pages 25/26). These delegations as set out in the Deed are consistent with the delegations given to the NRSBU on the same matters – specifically designed to ensure consistency. Clause 1.3 of the Delegations Register notes: “The general principle is that Council retains all responsibilities, duties, functions and powers that must be exercised by Council and where delegations are prevented by legislation. It may also retain certain key responsibilities, duties, functions, and powers that it wishes to exercise. All other responsibilities, duties, functions, and powers may be delegated to a committee, sub-committee, or other subordinate decision-making body or, where not retained by Council, are delegated to the Chief Executive. In addition, Section 3 of the Delegations Register details Delegations from Council to the Chief Executive. On this basis the NTRLBU (and consistent with the NRSBU) is deemed to have the authority to enter into all contracts necessary for the operation and management of the NTRLBU in accordance with the approved budgets and intent of the Business Plan. Responsibilities delegated to the NTRLBU 14. The Councils agree that responsibility for all management and administrative matters associated with the operation of the Joint Committee shall be delegated to the NTRLBU. The NTRLBU may without the need to seek any further authority from the Councils: (i) operate a bank account for the NTRLBU. (ii) enter into all contracts necessary for the operation and management of the NTRLBU in accordance with the approved budgets and intent of the Business Plan and the 'Procurement guidance for public entities' as produced by the Office of the Auditor General. (iii) authorise all payments necessary for the operation and management of the NTRLBU within the approved budgets and intent of the Business Plan. (iv) do all other things that are necessary to achieve the objectives as stated in the Joint Waste Plan, Long Term Plan, Activity Management Plan or Business Plan approved by the Councils, including setting terms of trade and acceptance criteria for waste to landfills. (v) comply with applicable Health and Safety legislation, and standing orders and administrative requirements of the administering Council. (vi) comply with all regulatory requirements concerning operation of the regional landfill facilities. |
11. Conclusion and Next Steps
11.1 The draft Business Plan 2025/26 has been prepared generally in alignment with the NTRLBU AMP 2024 – 2034. It includes projects to address waste minimisation, gas reuse and emission reduction opportunities, and to support responsible disposal of contaminated soil materials from the community.
11.2 The landfill fee increase included in this business plan reflects the proposed changes in the AMP, with the addition of the costs for the additional MFE levy which were not known at the time the AMP was prepared.
11.3 The increase in landfill general waste cost per tonne fee is ~6.4%. The resulting fee is $266 per tonne of general waste excluding GST.
Attachments
Attachment 1: 1399367370-10512 Nelson Tasman Regional Landfill Business Unit Draft Business Plan 2025-2026 ⇩
Item 9: Nelson Tasman Regional Landfill Business Unit Annual Report 2023 -2024
Report Title: Nelson Tasman Regional Landfill Business Unit Annual Report 2023 -2024
Report Author: Nathan Clarke - General Manager Regional Sewerage and Landfill
Report Authoriser: Alec Louverdis - Deputy Chief Executive / Group Manager Infrastructure
Report Number: R28730
1. Purpose of Report
Recommendation to Nelson City Council and Tasman District Council
3. Background and Discussion
3.2 There were no lost time injures and no medical intervention injuries during the year.
3.3 There were two health and safety near misses involving vehicles during the year.
3.4 Two infringement notices were received for noncompliance events during the year, both relating to sediment discharges to York Stream.
3.5 Two odour notifications were received from residents during the year, and while this is more than desired this is not a breach of the discharge to air consent.
3.6 NTRLBU had a net deficit of $537,655 for the 2023/24 financial year, excluding revaluation movements.
3.7 Revenue from waste disposal was within 0.6% of budget, with waste disposed decreasing from 76,000 in 2022/23 to 74,240 in 2023/24.
3.8 Safety on the landfill site was a key focus during the year. A significant number of construction vehicles were onsite for a large portion for the year.
3.9 Several safety audits were undertaken by NTRLBU using external parties, and significant focus was paid to ensuring that the contractors’ operations were to a high standard, and that contractors complied with their documented plans. The audits showed a significant improvement in compliance following the various audits across the year.
3.10 NTRLBU recruitment was successful during the year and all roles are currently filled. Support from contractors and consultants for operational support was required during the first half of the year and this has reduced during the second half of the year.
3.11 Capital works has been successfully implemented during the year with one major project completed and a number of smaller projects substantially completed. The major project completed was the lower stability buttress and leachate resilience project.
3.12 Other projects undertaken include:
3.12.1 Completion off Gully 2 access road.
3.12.2 The York Valley weighbridge software upgrade.
3.12.3 Geotechnical Investigations for Regional Landfill developments at York Valley.
3.12.4 Gas Well infrastructure renewals and gas ring main completion.
3.12.5 Additional wells from ground water and leachate monitoring.
3.12.6 Completion of Eves Valley Landfill access upgrades.
3.12.7 Development of buffer area, stormwater and set up for permanent transfer facility; and
3.12.8 Fire management improvement at York Valley.
3.13 The capital works programme successfully implemented over 78% of the budgeted works during the year.
3.14 The lower buttress was constructed during the 2023/2024 financial year, which has improved the landfill stability sufficiently that additional airspace can be developed.
3.15 This change means that, the landfill is no longer constrained by airspace but rather by the consent duration.
3.16 Landfill airspace calculations have been updated and based on the revised landfill footprint; a draft landfill final cap shape the airspace available for development has been increased up to as much as 1.79 million m3 an increase of ~500,000 m3.
3.17 Airspace is consumed at a rate of around 100,000m3 per year at historic compaction rates, giving a remaining volumetric life of around 18 years, an increase of five years from 2022/2023. The York Valley Gully one landfill consent expires in December 2034, giving a remaining life from a consenting perspective of 10.5 years.
4. Performance Measured Against Business Objectives and Performance Measures
4.1 The annual report includes a review of performance against the objectives described in the 2023/24 NTRLBU Business Plan.
4.2 Performance measure targets and dates are set annually in the Business Plan, along with performance measures for projects identified in the Activity Management Plan.
4.3 Performance is reported to the Joint Committee and to the shareholding councils annually.
5. Key successes
5.1 NTRLBU developed additional airspace during the year not only from excavation of airspace to support the stability buttress construction, but also from improvements to stability safety factors supporting additional waste being able to be disposed within the landfill footprint.
5.2 The 2023/2024 year included a significant amount of development for the York Valley landfill, particularly regarding stability, changes to the operation with the development of the transfer system, the retendering of the Operations and Maintenance contract, and the completion of the Gully 2 landfill access upgrade.
5.3 Safety audits and safety improvements for traffic management at the landfill face resulted in a significant improvement for the facility, culminating in the completion of the temporary transfer facility at the end of the financial year.
5.4 Improvements were completed for several issues discovered during 2021/2022 and 2022/2023, including ongoing improvement to gas collection and destruction, leachate control improvement, the completion of the all-weather access improvements at Eves Valley landfill.
5.5 Litter management improvements were made, and research was undertaken on waste minimisation activities.
5.6 Several projects were started, and good progress was made during 2023/24 but some are yet to be completed.
5.7 These projects include the facility for diversion of contaminated soil from York Valley Gully 1 Landfill, and the Eves Valley Landfill gas reuse facility. Both projects were delayed uncertainties around data accuracy. The remaining funding for these projects will need to be carried over into 2024/25.
6. Financial Performance
6.1 The NTRLBU Annual Financial Statements for the year ended 30 June 2024 are appended to this report. In summary:
6.1.1 Total revenue was greater than budget by 0.6% with a revenue of $16,101,662 compared to budget of $15,998,400.
6.1.2 Revenue of $280,264 was received from gas sales for the year.
6.1.3 ETS expenses were significantly below budget, with NTRLBU recording an ETS cost of $117,575 for the year compared to a budget of $776,000, due to the low UEF achieved compared to the ETS accounting provision made during the second half of the 2022/2023 financial year.
6.1.4 NTRLBU had a deficit of $537,655 compared to a budgeted deficit of $91,000.
6.1.5 Overall, the end of year operating result was within 2.8% of the annual budget.
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7. Important considerations for decision making |
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7.1 Fit with Purpose of Local Government The NTRLBU is a joint committee constituted pursuant to the provisions of Schedule 7 to the Local Government Act 2002 and contributes to the four Local Government well-beings of social, economic, environmental, and cultural. |
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7.2 Consistency with Community Outcomes and Council Policy Our infrastructure is efficient, cost effective and meets current and future needs. |
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7.3 Risk The risk of not approving the annual plan is that the Councils will have no annual report from the NTRLBU actions for the 2023/24 financial year |
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7.4 Financial impact This report has covers funding approved by the Councils and comments on costs as outlined in the annual business plan and long-term plans. |
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7.5 Degree of significance and level of engagement The NTRLBU is a Joint Committee of the two Councils and its activities are included in the Long-term Plans and Annual Plans of each Council. Consultation is undertaken by both Councils in the preparation and adoption of these plans. |
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7.6 Climate Impact A key feature of the NTRLBU capital programme is the ability to implement systems to reduce greenhouse gas emissions and environmental issues. The annual report outlines the achievement from these actions. |
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7.7 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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7.8 Delegations The Deed of Agreement for the Nelson-Tasman Regional Landfill Business Unit (Deed), signed on the 28 April 2017 by the two Mayors and the two Chief Executives of each of the two Council’s (Nelson and Tasman) assigns the delegations (as shown in the extract from the Deed - namely Clause 14 below) to the Joint Nelson-Tasman Regional Landfill Business (NTRLBU). These delegations are in addition to NTRLBU having powers to decide the setting of fee and charges at the regional landfill, and to accept (or not accept) waste from outside the Nelson/Tasman region as reflected in the Delegations Register (pages 25/26). These delegations as set out in the Deed are consistent with the delegations given to the NRSBU on the same matters – specifically designed to ensure consistency. Clause 1.3 of the Delegations Register notes: “The general principle is that Council retains all responsibilities, duties, functions and powers that must be exercised by Council and where delegations are prevented by legislation. It may also retain certain key responsibilities, duties, functions and powers that it wishes to exercise. All other responsibilities, duties, functions and powers may be delegated to a committee, sub-committee or other subordinate decision-making body or, where not retained by Council, are delegated to the Chief Executive. In addition, Section 3 of the Delegations Register details Delegations from Council to the Chief Executive. On this basis the NTRLBU (and consistent with the NRSBU) is deemed to have the authority to enter into all contracts necessary for the operation and management of the NTRLBU in accordance with the approved budgets and intent of the Business Plan. Responsibilities delegated to the NTRLBU 14. The Councils agree that responsibility for all management and administrative matters associated with the operation of the Joint Committee shall be delegated to the NTRLBU. The NTRLBU may without the need to seek any further authority from the Councils: (i) operate a bank account for the NTRLBU. (ii) enter into all contracts necessary for the operation and management of the NTRLBU in accordance with the approved budgets and intent of the Business Plan and the 'Procurement guidance for public entities' as produced by the Office of the Auditor General. (iii) authorise all payments necessary for the operation and management of the NTRLBU within the approved budgets and intent of the Business Plan. (iv) do all other things that are necessary to achieve the objectives as stated in the Joint Waste Plan, Long Term Plan, Activity Management Plan or Business Plan approved by the Councils, including setting terms of trade and acceptance criteria for waste to landfills. (v) comply with applicable Health and Safety legislation, and standing orders and administrative requirements of the administering Council. (vi) comply with all regulatory requirements concerning operation of the regional landfill facilities. |
8. Conclusion
8.1 The 2023/24 year has been a successful year for the NTRLBU.
8.2 The NTRLBU retendered the operation of the facility, increased the required waste compaction performance, and changed vehicle management and waste handling. These changes are expected to increase safety outcomes and extend the life of the landfill.
8.3 The landfill is now considered stable with a seismic stability factor greater than required by the resource consent. The landfill now has three layers of contingency installed to manage leachate. The landfill is now at an appropriate standard that it is unlikely to be damaged in a significant earthquake, or during significant weather events.
Attachments
Attachment 1: 1399367370-10513 NTRLBU Annual Report 2023-2024 (incl AB updates 070824) ⇩
Attachment 2: 749984575-1602 Nelson Tasman Regional Landfill Business Unit Annual Finance Report 2023 - 2024 ⇩
