Present: Deputy
Mayor of Tasman S Bryant (Chairperson), Tasman District Councillor T Walker,
Nelson City Councillors M Courtney (Deputy Chairperson) and A Stallard
In
Attendance: Deputy Chief Executive/Group Manager
Infrastructure (A Louverdis), General Manager Regional Services (N Clarke),
Governance Adviser (A Bryce) and Assistant Governance Adviser (M Taylor)
Apologies : Nil
1. Apologies
There were no 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 17
May 2024
Document number M20571, agenda
pages 7 - 9 refer.
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Resolved RLBU/2024/015
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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.
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Courtney/Walker Carried
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6. Nelson Tasman
Regional Landfill Business Unit General Manager Update Report August 2024
Document number R28727, agenda
pages 9 - 128 refer.
General Manager Regional
Services, Nathan Clarke presented the report and answered questions on the
buttress works, health and safety incidents and contractors, light waste
classifications and costs, transfer system costs, risk management and
mitigation, York Valley Landfill transfer facility, gas reuse actions and the
Nelson Hospital gas boiler sale and negotiations.
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Resolved RLBU/2024/016
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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.
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Walker/Courtney Carried
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Recommendation to Nelson City
Council and Tasman District Council RLBU/2024/017
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|
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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).
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Walker/Courtney Carried
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7. Nelson Tasman
Regional Landfill Business Unit Carryover Report 2023/2024
Document number R28701, agenda
pages 129 - 134 refer.
General Manager Regional
Services, Nathan Clarke took the report as read.
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Resolved RLBU/2024/018
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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.
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Stallard/Courtney Carried
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8. Nelson Tasman
Regional Landfill Business Unit Draft Business Plan 2025/2026
Document number R28728, agenda
pages 135 - 165 refer.
General Manager Regional
Services, Nathan Clarke took the report as read and answered questions on the
Local Disposal Levy (LDL)/Environment Waste Minimisation Levy costs and
increase, redundancy to reduce gas supply risks for the Hospital and the Nelson
Tasman Regional Landfill Business Unit Plan.
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Resolved RLBU/2024/019
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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 2025/2026
(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.
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Walker/Courtney Carried
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Recommendation to Nelson City
Council and Tasman District Council RLBU/2024/020
|
|
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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.
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Walker/Courtney Carried
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9. Nelson Tasman
Regional Landfill Business Unit Annual Report 2023 -2024
Document number R28730, agenda
pages 166 - 215 refer.
General Manager Regional
Services, Nathan Clarke took the report as read and answered questions on waste
disposal.
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Resolved RLBU/2024/021
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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.
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|
Stallard/Bryant Carried
|
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Recommendation to Nelson City
Council and Tasman District Council RLBU/2024/022
|
|
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That the Nelson City Council and Tasman District Council
1. Receives
the Nelson Tasman Regional Landfill Business Unit Annual Report 2023 -2024
and its Attachments (1399367370-10513 and 749984575-1602).
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Stallard/Bryant Carried
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10. Exclusion of the Public
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Resolved RLBU/2024/023
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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/Walker Carried
|
|
Item
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General subject of each matter to be
considered
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Reason for passing this resolution in
relation to each matter
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Particular interests protected (where
applicable)
|
|
1
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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
|
|
2
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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
|
The meeting went into confidential session at 10.58a.m.
and resumed in public session at 11.45a.m.
11. Restatements
It was resolved while the public was
excluded:
|
1
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CONFIDENTIAL: Nelson Tasman
Regional Landfill Business Unit Beneficial Reuse of Contaminated Soil
Facility Update
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|
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3. Agrees
that Report (R28375) and the decision remain confidential
at this time.
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There being no further business the meeting ended at 11.45a.m.
Confirmed as a correct
record of proceedings by resolution on (date)
Item 6: Nelson Tasman
Regional Landfill Business Unit General Manager Update Report November 2024
Nelson Tasman Regional Landfill
Business Unit
29 November 2024
Report
Title: Nelson
Tasman Regional Landfill Business Unit General Manager Update Report November
2024
Report
Author: Nathan Clarke - General
Manager Regional Sewerage and Landfill
Report
Authoriser: Alec Louverdis - Deputy Chief Executive / Group
Manager Infrastructure
Report
Number: R28884
1. Purpose of Report
1.1 This
report is an update by the General Manager (GM) on activities undertaken to 30 September
2024 by the Nelson Tasman Regional Landfill Business Unit (NTRLBU).
2. Recommendation
|
That the
Nelson Tasman Regional Landfill Business Unit
1. Receives the report Nelson Tasman Regional
Landfill Business Unit General Manager Update Report November 2024 (R28884).
|
3. Background
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 the operations performed
smoothly, and a number of variations were required to the contract which were
undertaken as required.
3.3 The
temporary transfer facility was constructed at the end of the previous year period
and operation of the facility has improved landfill customer reduced
environmental effects from mud and litter and has significantly increased
vehicle safety on the landfill site.
3.4 The Tahunanui
Beach contaminated sawdust was disposed to the landfill during the period. The
NTRLBU undertook additional work in preparation of the sawdust acceptance to
create sufficient airspace, and to build leachate drains and vehicle access
ways to support the saw dust disposal. The NTRLBU operated two separate
disposal areas during this time (one for municipal solid waste disposal, and a
separate one dedicated to sawdust disposal) to support the quick turnaround of
the trucks hauling the contaminated material. This arrangement allowed the
sawdust disposal to operate seamlessly, and not significant issues or delays
were incurred at the landfill.
3.5 The
NTRLBU preliminary finances to the end of September show a deficit of $404,000
for the 2024/25 year to date. These results were expected as they include
contract startup costs, the increased cost for the first year of the new
Operations contract, and the costs to set up to accept the Tahunanui Beach
sawdust disposal.
3.6 The
projected results to the end of the calendar year are for a surplus due to the
increased revenue from the sawdust, and the operational costs reducing to be
more in line with normal operations.
3.7 No
further information is available regarding the previous operations and
maintenance contractor variation claims.
4. Health
and Safety, and Environmental Records.
4.1 There
were no notable health and safety incidents during the period.
4.2 There
were seven battery ignition events recorded in the waste between 1 July and 31
October 2024. All the events were handled well by the operation contractor.
4.3 All
the ignition events were caused by Lithium Ion Batteries. The identified
sources of the batteries were one laptop, one e-bike battery, and a number of cell
phone batteries. Three had no identified source of the battery.
4.4 The
incident register for the period to end of September 2024 is included below.
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Health Safety
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Incident
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1/07/2024
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Slipped on clay covered bidim
cloth when approaching SRP 3 to measure water level. No harm.
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Reported
|
Considering options to reduce
slippery surface, add to hazard register.
Non slip grating has been
installed.
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Health Safety
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Incident
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9/07/2024
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NTRLBU staff slipped on slimy
concrete wingwall floor when checking discharge, landed on and bruised left
elbow
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Reported, discussed at the
H&S toolbox
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Considering options to reduce
slippery surface, add to hazard register
|
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Environmental
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Observation
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4/07/2024
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Customer did not input the
manifest number into system when reporting at weighbridge. Loads had manifest
but was a long standing order so forgot the system
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Recorded loads and amended
transactions. Customer contacted.
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No further action
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Health Safety
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Observation
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24/07/2024
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Site dumper hauling material
from borrow to surface, slipped off haul road into water table and required
digger to tow out.
|
Contractor recognised road
should have been tidied up sooner and noted learning with an incident report.
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No damage but showed learning.
Supervisor to review haul road prior to operating. SOP updated.
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Health Safety
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Incident
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6/08/2024
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Customer reversed into front
gate when backing off weighbridge, did not have the new fob so could not get
through.
|
Gate repaired, customer to pay
for repair. Reversing was driver decision outside control of site team.
|
Drivers make mistakes, consider
errors in site set up. No change and communication about new fobs was strong
from team.
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Health Safety
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Incident
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7/08/2024
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While electrofusion PE welding
a coupler in a new leachate pipe the pipe started to heat incorrectly and
caught fire.
|
Extinguished and investigated
by crew, caused as pipe had not been positions correctly and witness marks
not checked.
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SOP reviewed with crew. No
further action.
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Fire
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Observation
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8/09/2024
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Lead battery fire in waste
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Extinguished with clay
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Recorded
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Fire
|
Observation
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4/09/2024
|
Smoking fire, no flame on
refuse at tiphead
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Extinguished with clay
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Recorded
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Fire
|
Observation
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26/08/2024
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E-bike battery fire on tiphead
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Extinguished with clay,
watercart on stand by
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Recorded
|
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Environmental
|
Observation
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2/09/2024
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Main stormwater pond with at
96% capacity after rain event with water non-compliant to discharge. With
further rain forecast pond was pumped to sewer to increase capacity in pond.
Utilities was not happy that "stormwater" was being pumped into
sewer line and they we not notified of use.
|
A meeting with utilities was
conducted on 19/9/24 to hear concerns. NTRBLU will notify utilities and is
working on system improvements to reduce the likelihood of failed treatment.
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Utilities to be notified. V
notch to be installed to better understand inflow rate. Clean catchments such
as front face to be diverted away from pond to reduce inflow and risk of
overloading system.
V notch weir has been
installed.
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Health Safety
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Incident
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17/09/2024
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Joystick control on Tana
failed, was stuck in forward and drove off the waste. Emergency stop used to
halt machine.
|
Service undertaken and incident
reviewed. Joysticks are a spare art so potential known fault. MEC had toolbox
to review scenario for machine and discussed SOP.
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Response was correct, known
fault from Tana, continue with prestart checks and servicing
Toolbox completed with staff, competency assessment to operate.
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Environmental
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Observation
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20/09/2024
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Gulley 2 slide gate closed,
diverting wheel wash and gulley 2 catchment away from SRPs and into creek.
Catchments are stabilised and running clean, flow to be monitored in rain
events and if not compliant then to be treated through SRPs.
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N/A
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This will take flow out of the
ponds reduces risk of treatment failure and also reduce PACI consumption leading
to a reduction in operational cost. Work is in accordance with ESCP. Flow
will be monitored.
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Equipment
Damage
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Incident
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23/09/2024
|
Inward barrier arm electrical
fire during the night.
|
Replaced with Eves barrier arm
to return service. Wiring reviewed and some plugs upgraded. Wiring reviewed
by electrician.
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Legacy system with multiple
cords and wires, has not been reviewed set was just accepted. Replacement
required with more robust wiring. To be completed following adoption of new
weighbridge software and removal of old NCC computer which forms connection
to NCC network for billing.
|
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Health Safety
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Preventative
action
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23/09/2024
|
Operator had been observing
customers not wearing suitable footwear when exiting trucks on transfer pad.
Customers were pushing back on using boots as needed to run to pick up bags etc.
Customer contacted by NTRLBU and now upgrading runners to safety shoes.
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Equipment
Damage
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Preventative
action
|
19/09/2024
|
Operator of excavator digging
off eastern stormwater bench, "While sitting on the same level and
loading Volvo A30F with high sides, I have clipping the edge of the deck
twice this morning"
|
The A30F has been changed out
for a more suitable dump truck to avoid this.
Have had no issues since
|
No further action
|
|
Equipment
Damage
|
Incident
|
17/10/2024
|
Weighbridge computer desk
collapsed during system review. Resulted in loss of network connection to NCC
for 24 hours.
|
System was reassembled to
maintain service of weighbridge. Connection reset with IT support.
|
Need to remove weigh forward
system and have E-weigh software connect directly to NCC. This will allow
most of the legacy system to be removed and then the area organised and
secured.
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Table 1: Health
and safety and Environmental records for the period to 30 September 2024
4.5 The
operations and maintenance contractor has been performing well in regard to
health and safety and environmental performance.
4.6 One
area that the GM is very pleased to see is the operations contractor looking
for, and identifying, areas which could be improved without being prompted by
the NTRLBU. Examples of the actions occurring include repairs or improvements
to stairs and accessway to reduce the likelihood of slips and falls. Examples
of the improvement records are shown below: 
5. Stormwater
discharge non-compliance event
5.1 NTRLBU
has been focussing on further improvements to the management of stormwater on
the site. There have been no known non-compliant discharges during the period.
5.2 There
was one period where the sediment laden stormwater could not be discharged
within the consented conditions and was (as is required by the discharge
consent) discharged as leachate to sewer. This event has resulted in discussion
occurring on the leachate management system.
5.3 Leachate
management costs have increased substantially during the year with trade waste
charges being significantly above budget. NTRLBU installed leachate measurement
as requested by NCC in the previous year. NTRLBU anticipated these charges
being applied in the 2025/2026 financial year however NCC have applied these
for the 2024/2025 year.
5.4 NCC has expressed concerns regarding the leachate flow profile
during a recent rainfall event that was different to previous rainfall flow
profiles. This change relates to the changes made at the landfill to create
additional airspace in order to accept the significant amount of sawdust waste
from the Tahunanui beach.
5.5 It is
important that NTRLBU maintain sufficient leachate discharge capacity within
the leachate system to allow the landfill to operate and wastes from within the
region. Further discussion with NCC is required to reach a clear outcome how
this capacity can be maintained for the future.
6. Operations
and Maintenance Contract
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.
6.3 Monthly
compactions results vary depending on the wastes received, and with compaction
performance being 0.94, 0.9, and 0.86 Tonnes per m3 for the three months
respectively. All results showing higher compaction than has historically been
achieved.
6.4 The
temporary transfer facility 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.
6.5 The
current transfer facility has improved NTRLBUs understanding of the system
needs, and a concept for the permanent facility is being developed.
7. Update
on projects.
7.1 A
range of projects have been implemented over the last period.
7.2 The
HAIL management facility (Class 3 Landfill) at Eves Valley Landfill has begun
operating, however there has not be a lot of waste disposed at present.
7.3 Several
improvement works are underway at Eves Valley to ensure that the system can
accommodate the Class 3 waste and can manage the stormwater from the disposal
areas effectively.
7.4 A
design scope has been prepared for the engine supply for the Eves Valley
Landfill gas system. The size of the engine has been reduced to 100KW due to
the gas supply issues that occurred during the dry summer last year. Procurement
of the gas engine is anticipated to begin this calendar year.
7.5 Battery
Collection Bin (BCB) development progress.
7.5.1 Progress has been
made on the battery collection bins, with testing of how the bins react to two
different fires scenarios.
7.5.2 A recent testing
programme undertook a total of nine tests on the revised Battery collection bins.
7.5.3 The first test involved setting fire to cardboard and paper in the
bin to simulate a vandalism event. The test demonstrated that the fire
suppression system works and put out the paper fire before any batteries could
be damaged.
7.5.4 Five tests were
undertaken using the testing “jig”, the jig drives a nail into the
lithium-ion batteries to set off a lithium ion battery fire, we had three of
the tests rupture the batteries, however none of them getting hot enough to set
off the sprinkler or cause any other batteries to be damaged.
7.5.5 Three tests, where a
fire was set up in the system using paper and cardboard without any water in
the fire suppression system reservoir, fire was allowed to get fierce enough to
cause thermal runaway in some batteries, then using an external pump, water was
pumped into the reservoir to allow the fire suppression system to work, fire
was quickly extinguished in all three tests.
7.5.6 The conclusion of the
testing program is that the fire suppression system is now sufficient to
prevent battery fires from becoming established within the battery collection
bins.
7.5.7 Testing has shown the following:
· that the even without a fire suppression system the BCB contain the
fire, heat, and the “explosions” that occur when lithium ion
batteries are combusting.
· That the revised fire suppression system prevents fires from
establishing within the BCB by activating and dousing the material with water.
· That the fire suppression system will even put out a battery fire
that has established and is burning intensely within the BCB.
Figure 1: Pictures showing test 4 – allowing fire to get
established and then demonstrate that the fire suppression systems can put it
out.
7.5.8 NTRLBU has concluded that the bins are now safe for deployment
and in collaboration with NCC and TDC ten BCBs have been ordered for the
region.
7.5.9 Two BCBS are ready for deployment, with the third being
completed at present.
8. Deed
of Agreement and Terms of Reference Review
8.1 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 first before being
presented to the two Council’s. This work will involve securing a legal
review at a cost of $7,500 and will be a landfill cost.
9. Odour
Management
9.1 NTRLBU
had no odour notifications during this period.
9.2 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.
10. Litter
Management
10.1 There were no
litter complaints received during the period.
11. Emission Management
11.1 The NTRLBU gas
management system at York Valley Landfill has continued to operate effectively.
11.2 Gas capture and
destruction is still at high level, and balance gas levels are lower than
previous years suggesting that capping integrity has improved.
11.3 The annual
destruction testing has been undertaken on the Gas flare and the NTLBU owned
Boiler at HealthNZ.
11.4 A draft NZ
Emissions trading scheme (ETS) Unique Emission Factor (UEF) application has
been prepared based on year-to-date data, this draft application which
indicates that on the current performance NTRLBU will maintain its current UEF
at 90% reduction. NTRLBU will complete the UEF application at the end of the
year and will get this validated by an independent validator.
11.5 A recent gas
status report is shown below.
11.6 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.
11.7 The NZ government has recently consulted on the ETS settings for the
waste sector.
11.8 The NZ Government has released the new settings. The new settings
come into effect on 1 January 2026.
11.9 The new Default Emission Factor will be raised from 0.91 to 1.023
which will increase the number of ETS credits NTRLBU need to remit annually.
11.10 A
second change to the settings will allow gas to be destructed off the landfill
site. This was a major reason why landfills could not use gas for other
purposes and combusted gas to make electricity. This change allows NTRLBU to
continue with developing the Renewable Compressed Natural Gas (RCNG) project.
11.11 In
addition to the change allowing gas to be used offsite, the legislation
includes a section that sets the destruction efficiency for gas converted to
RCNG. This destruction efficiency is set at 0.99 (99% destruction) and this
removes the requirement for NTRLBU to monitor and demonstrate the destruction
of the gas it produces as RCNG.
11.12 This
change has significantly reduced the risk to NTRLBU associated with the RCNG
project has opened up additional markets and reduced compliance costs
associated with the project.
11.13 A
summary of the changes is shown below, and with the key changes highlighted in
blue.
12. Emissions
Trading Scheme Position
12.1 The ETS unit
price is currently around $63.70 per unit.
12.2 Our current
holding of 155,569 units has an average cost of $43.45 per unit.
12.3 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
12.4 Treasury policy
limit, assuming a Unique Emission Factor of 0.21 and budgeted waste volumes is
45,353 units.
12.5 Current holding
is 94,737 units more than policy due to the reduction in the UEF achieved in
2022 and in 2023.
12.6 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.
12.7 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.
13. Waste
Minimisation
13.1 These
are the primary activities going on with waste minimisation for NTRLBU at
present.
13.1.1 Battery diversion, this
programme has reduced the number of battery fires that NTRLBU has been
experiencing at the landfill, however ignition events caused by lithium ion
batteries are still occurring. NTRLBU has experienced seven battery related
ignition events since the new operations and maintenance contract commenced. This
work includes the development of the BCBS discussed above.
13.1.2 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.
13.1.3 The new Regional Landfills
Operations Contract (C133933) has commenced, and this includes incentives for
diversion of waste from landfill. However currently only eight tonnes of metal
has been diverted by the contractor.
14. Risk Management
14.1 NTRLBU considers
its risks on an ongoing basis, as risks on the site frequently change because
of additional information or changes to operations.
14.2 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 and
will focus on different risks in each quarterly report or risks that NTRLBU are
managing at that time.
14.2.1 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 another has commenced on the land in gully two. Remedial actions
are being undertaken to stabilise the areas and remedial action plans for the
areas are being developed. 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.
14.2.2 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. The
risks for this principally relate to Non-compliance with the discharge to water
consent.
14.2.3 Regional Landfill Consenting
– NTRLBU has started the process of developing its consent application
for the future landfill. A range of options have been considered at a
conceptual level. It is important that this consenting work continue in a
timely fashion as the time required to consent a new landfill can be
significant.
15. NTRLBU
Finances
15.1 Income Account
for the period to 30 September 2024
15.2 The budget year
to date shows NTRLBU is $404,159 below budget, which is expected due to a range
of start-up costs, and development costs which have occurred prior to income
being generated for the activities.
15.3 Operational
costs are above budget with increased costs associated with a range of
different activities, including start-up costs for the new operations contract,
additional Front face construction costs, and the development costs for the
second disposal area for the Tahunanui sawdust disposal.
15.4 Projections to
the end of calendar year are that the NTRLBU will have generated additional
income from the disposal of the sawdust and will have moved into surplus.
16. Conclusion
16.1 Overall, the NTRLBU is in a good
position, despite the current lower than budget financial position.
16.2 The financial position results
from costs that have accrued prior to the income from the waste disposal
activities, and this situation will resolve over the next few months.
16.3 The landfill is operating very
well with safety management, environmental management, and customer experience
all achieving a high performance measure.
Attachments
Nil
Item 7: Nelson Tasman
Regional Landfill Business Unit Business Plan 2025/26 Feedback Report
Nelson Tasman
Regional Landfill Business Unit
29 November
2024
Report Title: Nelson Tasman Regional Landfill Business Unit Business Plan 2025/26
Feedback Report
Report Author: Nathan
Clarke - General Manager Regional Sewerage and Landfill
Report Authoriser: Alec
Louverdis - Deputy Chief Executive / Group Manager Infrastructure
Report Number: R28906
1. Purpose
of Report
1.1 To
consider the feedback on the draft Nelson Tasman Regional Landfill Business
Unit (NTRLBU) Business Plan 2025-26 and adopt the final NTRLBU Business Plan
2025/2026 (Business Plan).
2. Summary
2.1 The
Business Plan outlines the work programme for 2025-26 and reflects the second
year of the 2024-2034 Activity Management Plan (AMP).
2.2 The
Business Plan was presented to Nelson City Council (NCC) and Tasman District
Council (TDC) for feedback.
2.3 No
feedback was received from either Council; however, feedback has been received
from officers from NCC and TDC – this is attached.
3. Recommendation
|
That the Nelson Tasman Regional
Landfill Business Unit
1. Adopts the Nelson Tasman Landfill Business Unit Business
Plan 2025/26 (NDOCS-1995708647-116).
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Recommendation
to the Nelson City Council and Tasman District Council
|
That the Nelson City Council and Tasman District Councils
1. Receive the Nelson Tasman Regional
Business Unit Business Plan 2025/26 (NDOCS-1995708647-116).
|
4. Background
and Discussion
4.1 The
draft Business Plan 2025-26 was approved by the NTRLBU Joint Committee for
provision to NCC and TDC on 16 August 2024.
4.2 It
allowed for increased operational associated with inflation, and for increased operational
costs associated with the MFE waste minimisation increases.
4.3 The
Business Plan also included additional capital funding for the hospital gas
resilience project.
4.4 No
feedback was received from either NCC or TDC when the draft Business Plan
2025-26 was presented.
4.5 Feedback
from NCC officers was received, which set out the expectation that the NTRLBU Business Plan 2025-26 work programme should be the same as
year 2 of the AMP, and if a need existed to change the activity expenditure to
meet this should be accommodated within the AMP budgets as a first step.
4.6 Since
the preparation of the AMP 2024-2034 the Ministry for the Environment (MFE) has
increase the waste disposal levy for the 2025/2026 financial year (and has also
increased the fee another $5 for the 2026/27 and 2027/28), and this increase
for the 2025/26 year has been included in the Business Plan.
4.7 This
additional and unforeseen waste disposal levy cost increase is unable to be
absorbed by NTRLBU without adverse effects on NTRLBU future budgets and
therefore the additional cost has been included in the Business Plan.
4.8 In
the draft Business Plan the NTRLBU sought an additional $500,000 in capital
funding to support the implementation of the hospital gas contract resilience
upgrades.
4.9 NTRLBU
have considered the other capital works items included in the capital programme
in the AMP for the 2025/26 financial year and have identified areas where
projects that could be deferred or reduced in scope to allow the hospital gas
resilience upgrades to be undertaken.
4.10 NTRLBU officers
adopted the feedback from NCC officers in relation to the CAPEX program, and
the capital programme is now the same as the AMP when escalation is included.
4.11 As such the
additional funding ($500k) has been removed from the programme of works, and
the Business Plan 2025-26 capital expenditure now matches year two of the AMP
(allowing for inflation).
5. Landfill
increase compared to planned increase in 2024- 2034 AMP.
5.1 The
proposed gate fee for the 2025/26 financial year for general waste to York
Valley landfill is $266 per tonne.
5.2 Escalation
over the first year of the AMP period was 2.2%.
5.3 The
increase in fee from the AMP projected fee of $255 per tonne to the proposed $266
per tonne is made up from the AMP fee for the 2025/26 year plus escalation of
the fee (2.2% increase), plus the additional $5 per tonne for the MFE levy
increase.
6. Options
6.1 The
following table outlines three options for the NTRLBU Business Plan 2025-26.
Officers support option 1:
|
Option 1: Adopt the Business Plan 2025-26. Recommended
Option
|
|
Advantages
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· Allows continuation of existing capital programmes.
· Allows ongoing renewal and upgrade of the scheme.
· No change to capital works programme.
· Accounts for cost increases due to inflation.
|
|
Risks and
Disadvantages
|
· Hospital gas resilience upgrades will require other activities to
be deferred or reduced in scope.
|
|
Option 2: Do not adopt the Business Plan 2025-26, adopt
the draft Business Plan 2025-26 as presented 16 August 2024Do not adopt the Business Plan 2025-26, adopt the draft
Business Plan 2025-26 as presented 16 August 2024Do not adopt the Business
Plan 2025-26, adopt the draft Business Plan 2025-26 as presented 16 August
2024
|
|
Advantages
|
· Allows continuation of existing capital programmes.
· Allows ongoing renewal and upgrade of the scheme.
· Hospital gas resilience projects are not constrained.
· Accounts for cost increases due to inflation.
|
|
Risks and
Disadvantages
|
· May
required NCC and TDC to consult on Annual Plans due to material changes to
expenditure.
· Increase
to capital works programme.
|
|
Option 3: Do not adopt the
Business Plan 2025-26.Do not adopt the Business Plan 2025-26.
|
|
Advantages
|
· There are no advantages.
|
|
Risks and
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 performance targets.
|
7. Discussion
of Options
7.1 NTRLBU
officers assessed several options to reduce operational costs and to reduce
capital costs.
7.2 Officers
were unable to find an option that would allow the additional MFE levy costs to
be absorbed without significantly increasing the NTRLBU operational deficit,
and adversely affecting future NTRLBU budgets.
7.3 The
AMP assumes that NTRLBU will operate at a $1 million deficit for the 2026/2027
financial year. If the NTRLBU does not increase the fee to reflect the
increased waste levy and add additional costs to recovery each successive waste
levy increase, then NTRLBU will need to significantly increase gates charges as
there will be insufficient funds to accommodate the budgeted deficit in
2026/2027.
|
8. Important
considerations for decision making
|
|
8.1 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.
|
|
8.2 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.
|
|
8.3 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.
|
|
8.4 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
|
|
8.5 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.
|
|
8.6 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.
|
|
8.7 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
Joint Committee.
|
|
8.8 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.
|
9. Conclusion
and Next Steps
9.1 The
NTRLBU Business Plan sets out the goals and expenditure for the business unit
for 2025-26.
9.2 The
Business Plan 2025/26 has been prepared in alignment with the NTRLBU AMP 2024
– 2034. Operational costs have been escalated by 2.2% and an
additional $5 per tonne has been added to the gate fee to cover the unforeseen
increase in the MFE waste minimisation levy.
9.3 Consideration
has been given to options for reducing the gate fee increase, however any
option that reduces the gate fee for the operational costs results in an
increased deficit for the NTRLBU would have ongoing effects on subsequent years
budgets.
9.4 NTRLBU
officers have reviewed the capital works programmes and adopted feedback of NCC
officers regarding capital expenditure. NTRLBU officers have adjusted the
capital programme to allow the hospital gas resilience upgrades to continue by
deferring or reducing the scope of other projects.
9.5 The
resulting fee proposed gate fee for the recommended option is $266 per tonne of
general waste excluding GST.
9.6 The
projected cost is the same as the Draft Business Plan approved for review and feedback
on and is the same as the gate fee projected in year two of the AMP when escalation
and the additional MFE levy have been included.
9.7 The
Business Plan includes projects to address waste minimisation, gas reuse and
emission reduction opportunities, and to support responsible disposal of
contaminated soil materials from the community.
Attachments
Attachment 1: Draft
NTRLBU Business Plan Feedback letter from NCC ⇩
Attachment 2: Nelson Tasman Regional Landfill Business
Unit Business Plan 2025/26 ⇩
