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Notice of the Ordinary meeting of

Nelson Tasman Regional Landfill Business Unit

Agenda | Rārangi take

 

Date:

Time:

Location:

29 November 2024

9:30 AM

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

Nelson City Council:

Cr Aaron Stallard

 

Iwi Representative:

Vacant

Tasman District Council:

Cr Trindi Walker

 

 

 

Quorum     3

 

Nigel Philpott

Chief Executive

governance.advisers@ncc.govt.nz

www.nelson.govt.nz

Nelson City Council Disclaimer

Please note that the contents of these Council and Committee agendas have yet to be considered by Council and staff recommendations may be altered or changed by the Council in the process of making the formal Council decision. For enquiries call (03) 5460436.

Nelson Tasman Regional Landfill Business Unit Delegations

Areas of Responsibility:

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.

Powers to Decide:

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.

Power to Recommend to Councils:

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.

Quorum:

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.

Procedure:

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

29 November 2024

 

Page No.

Order of Business

 

Karakia and Mihi Timatanga

 

1.       Apologies

2.       Confirmation of Order of Business

3.       Interests

3.1      Updates to the Interests Register

3.2      Identify any conflicts of interest in the agenda

4.       Public Forum

5.       Confirmation of Minutes

5.1      16 August 2024                                                                            1 - 10

6.       Nelson Tasman Regional Landfill Business Unit General Manager Update Report November 2024                                                            11 - 24

7.       Nelson Tasman Regional Landfill Business Unit Business Plan 2025/26 Feedback Report                                                                        25 - 54

8.       Exclusion of the Public                                                    55

 

Karakia Whakamutanga

Procedural Items

 

1.       Apologies

2.       Confirmation of Order of Business

3.       Interests

4.       Public Forum

5.       Confirmation of Minutes

5.1      16 August 2024                                                                            1 - 10

Document number M20718

Recommendation

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 16 August 2024, as a true and correct record.

 

8.       Exclusion of the Public                                                    55


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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 16 August 2024, commencing at 9.30a.m.

 

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.

Resolved RLBU/2024/015

 

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.

Courtney/Walker                                                                           Carried

 

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.

Resolved RLBU/2024/016

 

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.

Walker/Courtney                                                                           Carried

Recommendation to Nelson City Council and Tasman District Council RLBU/2024/017

 

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).

Walker/Courtney                                                                           Carried

 

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.

Resolved RLBU/2024/018

 

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.

Stallard/Courtney                                                                         Carried

 

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.

Resolved RLBU/2024/019

 

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.

Walker/Courtney                                                                           Carried

Recommendation to Nelson City Council and Tasman District Council RLBU/2024/020

 

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.

Walker/Courtney                                                                           Carried

 

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.

Resolved RLBU/2024/021

 

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.

Stallard/Bryant                                                                             Carried

Recommendation to Nelson City Council and Tasman District Council RLBU/2024/022

 

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).

Stallard/Bryant                                                                             Carried

 

10.     Exclusion of the Public

Resolved RLBU/2024/023

 

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:

Courtney/Walker                                                                           Carried

 

Item

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Particular interests protected (where applicable)

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

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

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

CONFIDENTIAL: Nelson Tasman Regional Landfill Business Unit Beneficial Reuse of Contaminated Soil Facility Update

 

3.     Agrees that Report (R28375) and the decision remain         confidential at this time.

There being no further business the meeting ended at 11.45a.m.

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

Resolved

 

 

 

 

 


 

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.

Health Safety

Incident

1/07/2024

Slipped on clay covered bidim cloth when approaching SRP 3 to measure water level. No harm.

Reported

Considering options to reduce slippery surface, add to hazard register.

Non slip grating has been installed.

Health Safety

Incident

9/07/2024

NTRLBU staff slipped on slimy concrete wingwall floor when checking discharge, landed on and bruised left elbow

Reported, discussed at the H&S toolbox

Considering options to reduce slippery surface, add to hazard register

Environmental

Observation

4/07/2024

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

Recorded loads and amended transactions. Customer contacted.

No further action

Health Safety

Observation

24/07/2024

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.

No damage but showed learning. Supervisor to review haul road prior to operating. SOP updated.

Health Safety

Incident

6/08/2024

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.

Health Safety

Incident

7/08/2024

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.

SOP reviewed with crew. No further action.

Fire

Observation

8/09/2024

Lead battery fire in waste

Extinguished with clay

Recorded

Fire

Observation

4/09/2024

Smoking fire, no flame on refuse at tiphead

Extinguished with clay

Recorded

Fire

Observation

26/08/2024

E-bike battery fire on tiphead

Extinguished with clay, watercart on stand by

Recorded

Environmental

Observation

2/09/2024

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.

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.

Health Safety

Incident

17/09/2024

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.

Response was correct, known fault from Tana, continue with prestart checks and servicing
Toolbox completed with staff, competency assessment to operate.

Environmental

Observation

20/09/2024

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.

N/A

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.

Equipment Damage

Incident

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.

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.

Health Safety

Preventative action

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.

Equipment Damage

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.

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).

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

·   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  

 


Item 7: Nelson Tasman Regional Landfill Business Unit Business Plan 2025/26 Feedback Report: Attachment 1



Item 7: Nelson Tasman Regional Landfill Business Unit Business Plan 2025/26 Feedback Report: Attachment 2
























Item 8: Exclusion of the Public

 

13.     Exclusion of the Public

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:

 

Item

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Particular interests protected (where applicable)

1

Nelson Tasman Regional Landfill Business Unit Meeting - Confidential Minutes - 16 August 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