Description: COAT-ARM Hastings District Council

 

Civic Administration Building

Lyndon Road East, Hastings

Phone:  (06) 871 5000

Fax:  (06) 871 5100

WWW.hastingsdc.govt.nz

 

 

 

 

Open

 

A G E N D A

 

 

Omarunui Refuse Landfill Joint Committee MEETING

 

 

 

Meeting Date:

Friday, 5 October 2018

Time:

1.00pm

Venue:

Council Chamber

Ground Floor

Civic Administration Building

Lyndon Road East

Hastings

 

Committee Members

Chair: Councillor Heaps

Councillors Lawson, Nixon and Redstone (HDC)

Councillors Dallimore (Deputy Chair) and Tapine (NCC)

NCC Alternate: Mayor Dalton

HDC Alternate: Councillor Kerr

(Quorum = 4 including at least one elected member from each Council)

Officer Responsible

Waste and Data Services Manager, Martin Jarvis

Committee Secretary

Carolyn Hunt (Ext 5634)

 


 

HASTINGS DISTRICT COUNCIL

 

Omarunui Refuse Landfill Joint Committee MEETING

 

Friday, 5 October 2018

 

VENUE:

Council Chamber

Ground Floor

Civic Administration Building

Lyndon Road East

Hastings

TIME:

1.00pm

 

A G E N D A

 

 

 

1.         Apologies

An apology from Councillor Kerr has been received.

Leave of Absence had previously been granted to Councillor Kerr

2.         Conflict of Interest

Members need to be vigilant to stand aside from decision-making when a conflict arises between their role as a Member of the Council and any private or other external interest they might have.  This note is provided as a reminder to Members to scan the agenda and assess their own private interests and identify where they may have a pecuniary or other conflict of interest, or where there may be perceptions of conflict of interest. 

If a Member feels they do have a conflict of interest, they should publicly declare that at the start of the relevant item of business and withdraw from participating in the meeting.  If a Member thinks they may have a conflict of interest, they can seek advice from the General Counsel or the Democratic Support Manager (preferably before the meeting). 

It is noted that while Members can seek advice and discuss these matters, the final decision as to whether a conflict exists rests with the member.

3.         Confirmation of Minutes

Minutes of the Omarunui Refuse Landfill Joint Committee Meeting held Friday 24 November 2017, including minutes while the public were excluded.

(Previously circulated)

4.         Health and Safety Report                                                                                          5

5.         Annual Review of Hedging Strategy For Landfill Carbon Emissions         11

6.         Omarunui Joint Landfill Annual Report for the year ending 30 June 2018 17

7.         Additional Business Items

8.         Extraordinary Business Items 

 

 

     


File Ref: 18/127

 

 

REPORT TO:               Omarunui Refuse Landfill Joint Committee

MEETING DATE:        Friday 5 October 2018

FROM:                           Senior Health & Safety Co-ordinator

Nikola Bass

SUBJECT:                    Health and Safety Report        

 

 

1.0       SUMMARY

1.1       The purpose of this report is to update/inform the Committee about Health and Safety Management at the Omarunui Refuse Landfill.

2.0       BACKGROUND

2.1       The Health and Safety at Work Act (HSWA) came into effect on 4 April 2016.

2.2       The HSWA has created a role named specifically under the Act as “Officers”. The Act places a positive duty on ‘Officers’ of an organisation to exercise due diligence to ensure that the organisation complies with its Health and Safety duties and obligations.

2.3       The term “Officers” in the Act includes those who hold positions that enable them to significantly influence the management of the organisation.

2.4       For the purposes of this Joint Committee these roles will be referred to “HSWA Officers” (to assist with differentiating between it and “Council Officers”).

2.5       HSWA Officers for Hastings District Council are Elected Members and the Chief Executive, and may extend to members of the Leadership Management Team.

2.6       Whilst Hastings District Council HSWA Officers are provided with monthly and quarterly health and safety reports in order to assist them in meeting their governance obligations. It is recognised that Napier City Council’s Elected Members are also members of this Joint Committee and therefore an overview of Health and Safety Management at the Omarunui Landfill is provided below in order to assist them with their governance obligations.

2.7       Due diligence requires HSWA Officers to take reasonable steps to understand the organisation’s operations and Health and Safety risks, and to ensure that they are managed so that Council meets its legal obligations.

3.0       CURRENT SITUATION

3.1       Omarunui Landfill operates under Hastings District Council’s Health and Safety Policy and Procedures

4.0       HEALTH AND SAFETY REPORTING

4.1       Health and safety reporting is most comprehensive when it encompasses both Lead and Lag Indicators. Lagging indicators measure an organisation using past incident statistics. A leading indicator is a measure preceding or indicating a future event used to drive and measure activities carried out to prevent and control injury or illness. They are focused on future safety performance and continuous improvement.

4.2       Attached is the financial year to date data for the Omarunui Landfill. The period covered is the the third and fourth quarter of the financial year beginning 1 July 2017.

4.3       Moving forward regular reports will be provided to the Joint Committee on a six monthly basis in order to provide meaningful information regarding any trends.

4.4       In addition to the six monthly reports, it is recommended that any significant incidents or exceptions be reported quarterly within the operational report.

5.0       SIGNIFICANCE AND ENGAGEMENT

5.1       The Report does not trigger Councils Significance and Engagement Policy and no consultation is required.

 

6.0       RECOMMENDATIONS AND REASONS

A)        That the report of the Senior Health & Safety Co-ordinator titled Health and Safety Report dated 5/10/2018 be received.

 

Attachments:

 

1

Health & Safety report - 1 January-31 July 2018

HR-03-01-18-293

 

 

 

 


Health & Safety report - 1 January-31 July 2018

Attachment 1

 

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File Ref: 18/841

 

 

REPORT TO:               Omarunui Refuse Landfill Joint Committee

MEETING DATE:        Friday 5 October 2018

FROM:                           Management Accountant

Jeff Tieman

SUBJECT:                    Annual Review of Hedging Strategy For Landfill Carbon Emissions        

 

 

1.0       SUMMARY

1.1       The purpose of this report is to obtain a decision from the Committee on the hedging strategy for carbon emissions at the Omarunui Landfill.

1.2       This issue arises from the regulations for landfill methane emissions under the New Zealand Emissions Trading Scheme (NZ ETS) which require waste disposal facility operators to surrender emissions units (known as New Zealand Units, NZU) by 31 May each year to match their emissions for the previous calendar year.

1.3       The Council is required to give effect to the purpose of local government as prescribed by Section 10 of the Local Government Act 2002. That purpose is to meet the current and future needs of communities for good quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost–effective for households and businesses. Good quality means infrastructure, services and performance that are efficient and effective and appropriate to present and anticipated future circumstances.

1.4       The objective of this decision is relevant to the purpose of Local Government by ensuring ETS obligations are managed in a way that is cost effective to households and businesses.

1.5       This report concludes by recommending that the Committee approve the signing of a forward contract to fix the price of NZUs for the 2020 calendar year at 100% cover along with additional cover for 2021 at 80% and 2022 at 60%.

2.0       BACKGROUND

2.1       A report on the surrender requirements and obligations for Landfills under the Emissions Trading Scheme was presented to the Omarunui Refuse Landfill Joint Committee at a meeting on 29 June 2012. In summary the report recommended the parent Councils approve the purchase of NZU forward contracts to fix the price of NZUs for three years in advance. This would ensure prudent management of NZU price risk, provide the Landfill with price certainty on NZU prices and ensure full cost recovery.

2.2       At its meeting on 28 July 2017 the Omarunui Refuse Landfill Joint Committee approved a hedging strategy to hold forward purchase contracts covering emissions obligations going out 3 years (2017, 2018 and 2019).

2.3       The committee also resolved that the hedging strategy be reviewed annually.

2.4       The landfill has met its surrender obligations for the 2017 calendar year. This now leaves the landfill holding forward contracts to purchase a total of NZU 187,458 for surrender in May 2019 and May 2020. Details of the NZU forward contracts held by the Landfill are as follows:

 

Calendar year

Surrender/maturity

Seller

Buyer

No of NZU's

Price/unit

Cost

2018

May 2019

Westpac

HDC

43,230

$16.85

$728,425.50

2018

May 2019

Westpac

HDC

38,318

$21.25

$814,257.50

2019

May 2020

Westpac

HDC

105910

$19.96

$2,113,963.60

 

2.5       The chart below shows the trend in the NZU spot price for the last 3 years.

2.6       Current indicative NZU forward cover price for 2020 is $27.40, 2021 $28.30 and 2022 $29.35.

            2018 is the last year we will receive a subsidised surrender of NZU’s (83%). From 2019 we are required to surrender 100% of the NZU for the landfill emissions.

Calendar Year:

2018

2019 onwards

Transition:

83%

100%

Surrender Obligation:

1 unit for every 1.2 tonnes of emissions

1 unit for every tonne of emissions

3.0       CURRENT SITUATION

3.1       The landfill currently has three forward contracts in place to purchase a total of NZU 187,458 over the next two years (May 2019 and May 2020).

3.2       We have a carryover balance from 2017 calendar year of 32 NZU which can be used to offset any shortfall in 2018.

3.3       Based on latest forecast and economic growth for the region, the expected tonnage for 2020 and beyond to be 90,000T.

4.0       HEDGING OPTIONS

            2020

4.1       Option 1. Sign a forward cover contract for 2020 calendar year and provide certainty for setting gate prices.

4.2       Option 2. Take no forward cover contract for 2020 calendar year and purchase NZU on the spot market in May 2021.

5.0       HEDGING STRATEGY

5.1       Currently Omarunui Landfill secure annual contracted prices for NZU for 3 years in advance. The Government are in the process of reviewing how the New Zealand emission trading scheme operates to align this with their objectives for the Paris Agreement and the proposed Zero Carbon Bill. Though this process is still underway, the objective is to limit NZU availability over time and thereby increasing the unit price to encourage organisations to invest in technology to reduce their emissions, which reduces the number of units they require. The open market is already factoring increases in future contract prices beyond 3 years. The table below states the current pricing for NZU forward contracts and spot market.

5.2       Officers have discussed the hedging strategy and whether contracts for 3 years in advance is still appropriate or whether we should reduce some of the risk of higher price rises and secure units for years 4 and 5. The major uncertainty with locking in a contract to purchase units is estimating the amount of tonnes expected in the landfill that far out. An option that could be considered is to adopt a strategy consistent with Council’s treasury policy and secure contracts for years beyond the current 3 year period, but at a reducing percentage. An example could be 80% for year 4 of estimated volumes and 60% for year 5.

6.0       SIGNIFICANCE AND CONSULTATION

6.1       This matter is not significant in terms of Council’s Significance Policy and does not trigger a requirement for consultation.

7.0       ASSESSMENT OF OPTIONS

7.1       Option 1. Sign a forward cover contract for 2020 calendar year and provide certainty for setting gate prices. This allows Management to lock in gate prices before 2020 calendar year, which will provide certainty to customers as well as alleviate any risk of upward price movement on the spot market during that time frame.

7.2       The following table shows the estimated number of units that the landfill would be required to surrender in May 2021.

May surrender

Progressive surrender requirement

Default factor

Estimated annual tonnages

NZU obligation

Indicative NZU contract price

Potential emission obligation

2021

100%

1.19

                     90,000

           107,100

$27.40

$2,934,540

 

7.3       In estimating the 2020 surrender obligation officers have made the following assumptions:

·    The “1 for 1” surrender requirement remains unchanged.

·    The default factor remains unchanged at 1.19.

7.4       Tonnages are based on the latest estimates for 2020 calendar year (90,000T) which will require the purchase of NZU 107,100.

7.5       As the surrender requirements are based on estimated tonnages the actual amount of NZUs to be surrendered in the future may slightly vary from the forward purchase contract amount. Any NZU shortfall would be purchased at the time from the spot market and surplus NZUs could either be sold back into the market or remain in the NZU holding account until the next surrender date. Assuming there are no further changes to the current ETS legislation it is anticipated that any shortfalls or surpluses would be small.

7.6       There is a risk that the NZU price may fall below the agreed forward contract rate but the risk to the Council is mitigated with the cost being recovered through the gate charge.

7.7       Option 2. Take no forward cover contract for 2020 calendar year and purchase NZU on the spot market in May 2021.

7.8       Option 3. In conjunction with option 1,take additional forward cover for year 4 at 80% and year 5 at 60% of estimated tonnages.

 

May surrender

Percentage covered

Default factor

Estimated annual tonnages

80% NZU obligation

Indicative NZU contract price

Potential emission obligation

2022

80%

1.19

                  90,000

           85,680

$28.30

$2,424,744

2023

60%

1.19

90,000

64,260

$29.35

$1,886,031

 

8.0       PREFERRED HEDGING OPTION/S AND REASONS

8.1       Option 3. Sign a forward cover contract for 2020 calendar year and secure additional cover for year 4 at 80% and year 5 at 60% of estimated tonnages.

8.2       This option provides the least risk to the landfill and also allows the Committee to set gate prices with certainty the ETS levy collected will cover the forward contract and is consistent with Omarunui Refuse Landfill Joint Committee hedging strategy. Extending the forward cover out to years 4 and 5 at 80% and 60% respectively, allows the landfill to secure price certainty in an ever increasing and strong NZU market. This market is expected to stay strong due the New Zealand’s commitment to the Paris Agreement and the Zero Carbon Bill that is going through parliament at the moment. The rationale for securing 80% in year 4 and 60% in year 5 is the difficulty of estimating tonnes this far out as this is heavily reliant of the economic activities within our region. As each year roles on, we are able to then top this up by 20%, so by year 3, we have 100% cover.

Officers have received advice that should the ETS scheme be abandoned all forward contracts held with the banks would be null and void with absolutely no cost to the landfill.

 

9.0       RECOMMENDATION

A)        That the report of the Management Accountant titled Annual Review of Hedging Strategy For Landfill Carbon Emissions dated 5/10/2018 be received.

B)        That the Landfill Committee approve the forward purchase contract for 107,100 New Zealand Units currently estimated at around $2,934,540 to fix the price of NZUs for the calendar year 2020,  85,680 NZU at around $2,424,744 for calendar year 2021 and 64,260 NZU at around $1,886,031 for 2022. The Chief Executive (Hastings District Council) be authorised to approve the nature of the contract and to execute the necessary contracts.

C)        That it be noted that the actual cost of the extension of the forward purchase contract can only be firmly established when the order is placed in the market.

D)        That the hedging strategy be reviewed annually.

 

Attachments:

There are no attachments for this report.

 

 


File Ref: 18/842

 

1.   

REPORT TO:               Omarunui Refuse Landfill Joint Committee

MEETING DATE:        Friday 5 October 2018

FROM:                           Waste and Data Services Manager

Martin Jarvis

Management Accountant

Jeff Tieman

SUBJECT:                    Omarunui Joint Landfill Annual Report for the year ending 30 June 2018        

 

 

1.0       SUMMARY

 

1.1       The purpose of this report is to update and inform the Committee on the physical performance aspects of the Omarunui Landfill for the 2017/2018 financial year and provide a commentary on other significant events and impacts.

 

2.0       BACKGROUND

2.1       Records of the various categories of waste disposed of at the landfill are recorded in the landfill’s weighbridge software system. The estimated tonnages are compared to actual tonnages in the following user categories:

 

2016/17 actual (tonnes)

2017/18 actual (tonnes)

2017/18 estimated (tonnes)

Commercial

45,631

46,778

41,000

Special

9,181

         10,555

  7,000

HDC

13,279

12,073

11,000

NCC

16,752

16,672

16,000

Total

84,843

86,078

75,000

 

2.2       The overall tonnage is 15% higher than estimate, with Napier City 5% above estimate, Hastings District 10% above estimate, commercial 14% above estimate and special 51% above estimate. 

2.3       Overall tonnages are 1.5% higher compared with last year’s tonnages. Napier City has decreased 0.5%, Hastings District a 9% decrease, commercial a 2.5% increase and special a 15% increase.

2.4       The category “Commercial” includes all waste brought directly into the landfill by private waste operators and excludes transfer station waste. 

 

 

 

1.0   

 

 

 

2.0   

3.0       CURRENT SITUATION

3.1       The Landfill reported a surplus of $3,266,186 for the financial year ended 30 June 2018. This is supported by the Omarunui Landfill Joint Committee Financial Statements for the year ended 30 June 2018 (attached as Attachment 1). The financial statements have been audited by Audit NZ, but formal communication of any findings have yet to be received. The surplus of $3,266,186 was $1,644,483 above budget and is summarised as follows:

2016/17

Actual

Financial Position

2017/18

Actual

2017/18

Budget

2017/18

Variance

% Variation

8,687,894

Total Revenue

8,759,378

6,898,200

1,861,178

27%

4,734,956

Total Expenditure

5,493,193

5,276,497

(216,695)

-4%

3,952,938

Surplus before adjustments

3,266,186

1,621,703

1,644,483

 101%

 

3.2       The actual compared to estimated expenditure* in operations is as follows:

EXPENDITURE

Actual $

Budgeted $

Variance $

Variation

Maintenance - Landfill

856,229

741,345

114,884

-15%

Other refuse disposal

568,749

694,993

 (126,244)

18%

External plant hire

431,060

526,547

 (95,487)

18%

External plant hire escalations

9,677

40,000

 (30,323)

76%

Leachate Treatment/Disposal

113,980

79,601

34,380

-43%

Kiosk Charges

32,559

103,650

  (71,091)

69%

Ground & Surface Water Testing

29,271

42,080

 (12,809)

30%

Gas to Energy

0

4,500

(4,500)

100%

Farm operations

2,188

3,583

 (1,394)

39%

Rates

15,224

23,400

(8,176)

35%

Overheads - Administrative

22,893

22,999

(106)

0%

Depreciation

1,512,317

1,493,800

18,517

-1%

Total

3,594,147

3,776,498

(182,351)

5%

*Excludes revaluation, waste levy and ETS

 

 

 

4.0       Maintenance

4.1       Slightly more maintenance work was required during the year and as a result costs were 15% over budget.  The landfill carries out planned maintenance work and unplanned work as required.  Planned items include work on the drains, roads, stormwater ponds, fences, storage areas, compound and landfill cap.  As a result the landfill is in very good shape.

5.0       Refuse Disposal

5.1       Disposal costs are 18% below budget.  Savings on disposal operations were generated by efficiencies at the tip face and savings generated by the integration of operational and development work on Stage 3C of Area D.

6.0       External Plant Hire

6.1       The savings in the plant hire area can be attributed to efficiencies at the tip head and the reduced number of times the tip head needed to be shifted.  Furthermore the access road to the tip area is now much shorter than it has been historically and less work is required to maintain it.  During the year efficiencies were also gained by the integration of development and operational earthworks.

7.0       Leachate Treatment

7.1       Leachate treatment/disposal costs were over budget by $34,380.  This was due to the need to cart some leachate offsite for treatment and improvements to the leachate reticulation network including pumps.

8.0       Forest Account

8.1       The forest harvest was completed in August 2017 with total revenue of $1,644,574 and expenditure of $163,488. The net revenue of $1,481,086 was distributed to the shareholding Councils minus $120,000 which was transferred to a reserve to cover the replanting and maintenance costs.

9.0       Ground & Surface Water Testing

9.1       All ground and surface water testing was carried out as required by the resource consents for the site.  The work is independently undertaken by Stantec (formerly MWM consultants).  This account was under spent by $12,809 as no additional (unscheduled) testing was required during the course of year.

10.0    REVENUE

10.1    Total revenue was 27% more than estimated due to the increased volumes of waste received at the site. 

 

 

 

Revenue* details are as follows:

REVENUE

Actual $

Budgeted $

Variance $

Variation

Commercial Operations

4,291,027

3,454,000

837,027

24%

Forest

474,451

0

474,451

 

Hastings District

823,516

737,000

86,516

12%

Napier City

1,173,719

1,072,000

101,719

9%

Other Revenue (sale of gas)

38,268

50,000

(11,732)

      -23%

Rentals (Farm)

14,177

9,200

4,977

54%

Tyre development

86,078

75,000

11,078

15%

Total

6,901,235

5,398,200

1,503,035

28%

*Excludes waste levy, ETS and interest on funds

 

10.2    The Other Revenue category includes income from the sale of landfill gas and the power plant site lease. The revenue from the sale of gas was lower than budget due to the plant consumption levels being lower than expected. The budget for the 2018/19 gas revenue has been adjusted to reflect actual consumption.   

11.0    current DEVELOPMENT AND DEVELOPMENT EXPENDITURE

11.1    The development costs for the Omarunui Landfill for the 2017/2018 year were as follows:

Actual $

Budget $

Variance $

Variation %

$875,259

$1,981,805

$1,106,546

56%

 

11.2    Development costs incurred during the 2017/18 year principally related to the small section of liner installed in Stage 3C of Area D.  This involved earthworks, earth liner construction and the landfill gas capture system.  While not being a large area of liner it’s an important milestone as it completes development work at the northern end of Area D (stage 3) and refuse can now be filled up to the access road boundary.  Development funds not spent have been carried forward to the 2017/18 year.

12.0    FUTURE DEVELOPMENT WORK

12.1    It is expected that a substantial amount of work will be carried out on developing the gas capture system in the 2018/19 year.  This work involves vertical extraction wells, horizontal wells and pipe network. Only a small amount of earthworks is anticipated over the course of the year.

12.2    There is no construction work planned for Area’s B and C in 2018/19 year.  However, design, planning and consent related work is likely during the course of the current year.  Based on current waste volumes a new landfill area (either Area B or C) will be required by the end of 2023.  To meet this deadline consenting and constructing work will need to start well before that date.  The landfill does have the ability to maximise and extend the filling area of Area D (stage 4) and this will add an additional two years life to the overall site.  Future landfill budgets allow for the development work associated with the full construction of Area D.  These budgets are reviewed annually to ensure appropriateness.

 

13.0    WASTE LEVY

13.1    The waste levy continues to be collected at a rate of $10 per tonne and passed on to the Ministry for the Environment.  At this stage there has been no firm indication from the government that the $10 per tonne rate will be increased, however there continues to be public debated about the application of the levy to a wider range of landfills and the levy rate itself.

14.0    EMISSIONS TRADING SCHEME (WASTE)

14.1    The Emissions Trading Scheme (ETS) has an impact on the gross charge rate for all waste accepted by the landfill.  The additional charge to cover ETS compliance has been applied in a similar way to the waste levy and GST.  Accordingly the ETS charge is added to the base disposal rate as derived by the Full Cost Accounting Model and set by the Omarunui Joint Refuse Landfill Committee.

14.2    Over recent years the Government has implemented changes to the ETS that have had a significant impact on the landfill.  These changes have resulted in greater compliance costs and the ETS charge has now been lifted from $10 to $18 per tonne as of the 2018/19 year.  Further increases beyond the current level have been allowed for in future budgets.

14.3    The ETS is the subject of a separate report to the committee.

15.0    LEACHATE & Tyres

15.1    The landfill has been collecting $1 per tonne to generate a reserve to directly fund the development of a permanent irrigation system and any costs relating to emergency offsite disposal situations.  The balance of the leachate reserve as at 30 June 2018 was $347,074.

15.2    A tyre reserve was started in 2017/18 and this has a balance in the reserve of $86,078.  The reserve is to assist in the shredding and/or cartage of waste tyres to a government endorsed disposal site that would recycle the tyres or extract energy from the disposal process.

16.0    landfill disposal cost

16.1    The base disposal charge rate for the 2017/18 year was $68 (excludes waste levy, ETS and GST).  This rate remained unchanged for the current 2018/19 financial year, however an increase in the cost of meeting ETS obligations resulted in an overall increase in the gate charge.  When the Waste Levy ($10) and ETS ($18) charges are added to the base rate the disposal charge becomes $96 per tonne (excluding GST).  The Ministry for the Environment’s “Full Cost Accounting Model” is used for calculating the base charge rate so that all costs associated with operating the site are recovered at the gate.

17.0    Landfill Liaison Committee

17.1    There have been no meetings of the Landfill Liaison Committee during the last financial year.  The Landfill Liaison Committee members are invited to all Omarunui Refuse Landfill Joint Committee meetings and are sent the agendas of these meetings.

 

18.0    Landfill Users Meeting

18.1    A landfill users’ meeting was held on 24 November 2017.  Topics for discussion included charge rates, development work, general business and an update on the Waste Management & Minimisation Plan process.

19.0    Security

19.1    Security at the site is continually reviewed.  Cameras have been installed at the kiosk/weighbridge and tip face for security reasons and the policing/recording of refuse entering the facility. No break in’s to the site were recorded in the 2017/18 year.

20.0    health and safety

20.1    The Omarunui Landfill operates under the Hastings District Council’s Health and Safety Policy.  The Council’s commitment under this policy is “to keep employees, volunteers, contractors and the community safe through living a strong safety culture”.

20.2    Additional Health & Safety information, and matters relating to the performance of the landfill over the course of the 2017/18 year, are the subject of a separate report to this committee.

21.0    ISO 9001 - QUALITY ASSURANCE

21.1    The quality management certification of the landfill is part of the Hastings District Council Asset Management certification.

21.2    The Asset Management quality system was externally audited for certification on 12 March 2018 by Dan Hynson of Telarc SAI.  The AS/NZS ISO 9001 Certification has an expiry date of 12 March 2019.

21.3    One internal audit was completed during the year July 2017 to June 2018.  The documented procedures were found to be working well with no new improvements suggested.

21.4    The landfill’s objective is to comply with all consent requirements.  Any non-compliance issues are reported to the Hawke’s Bay Regional Council (HBRC) as per consent instructions and dealt with accordingly.

22.0    COMPLAINTS

22.1    Only two complaints were received during the 2017/18 year.  One of the complaints was in relation to seagulls and the other concerned odour.   In respect of the birds an additional “bird-banger” was hired for a period of time to scare the birds away.  With regard the odour complaints they related to drilling work in the refuse when installing new gas extraction wells. Typically, very few formal complaints are received about the landfill. 

22.2    Complaints traditionally concern odour, birds, speeding vehicles and litter blown from the site and off trucks.   Complaints about odour are investigated by landfill staff and typically this is a result of a “smelly” load of refuse entering the site or when the need arises to excavate into existing waste mass during the course of development work (i.e. installing gas wells).  The new gas extraction wells that have been installed in Area D have created a negative pressure zone in that area which has reduced the tendency for landfill gas to vent out into the open air.  As not all odours in this rural location can be attributed to the landfill, wind direction information is monitored at the site so that the source of any odours can be more easily identified.

22.3    In terms of litter, the landfill policy is to pick up litter whenever required (without prompting) and from neighbouring properties following any strong winds.  This proactive approach has worked well and the landfills direct neighbours very rarely complain as they know the issue will be dealt with automatically.  One complaint was received during the course of the year and this was dealt with immediately.

22.4    Maintenance work on the unsealed access road is continuous and includes watering, grading and the application of suitable metal.  Some verbal complaints were received about the condition of the unsealed road during the course of the year.  When a complaint is received the condition of the road is re-evaluated and maintenance work is carried out as required.

23.0    joint waste management and Minimisation plan

23.1    The Omarunui Joint Refuse Landfill Committee members will be aware that the parent Council’s (NCC and HDC) are reviewing the current Joint Waste Management & Minimisation Plan (WMMP). The Waste Minimisation Act 2008 requires councils to adopt a WMMP, which must be reviewed every six years.  A draft plan has been consulted on and both the HDC and NCC have since adopted the plan.

24.0    CONCLUDING COMMENTS

24.1    From 2011 through to 2016 landfill waste volumes were static at around the 72,000 tonnes mark.  However there was sharp increase in the 2016/17 year and the annual waste volume increased by 9,500 tonnes.  After that jump the upward trend has levelled off somewhat and only a modest increase of 1,200 tonnes was recorded last financial year.  The increased volume of waste going to landfill is considered to be the result of increased economic activity and population growth in Hawke’s Bay.

24.2    The final outcome of the Joint Waste Management and Minimisation Plan review may have an impact on the Omarunui Landfill by way of reduced waste volumes.  Either way, planning and development work on Area B or C needs to continue to ensure that landfill space is available for residual waste.

 

25.0    RECOMMENDATION

A)   That the report of the Waste and Data Services Manager titled “Omarunui Joint Landfill Annual Report for the year ending 30 June 2018” dated 5/10/2018 be received.

B) That the unaudited Omarunui Joint Landfill Financial Statements for the year ended 30 June 2018 and attached as Appendix 1 be received.

 

Attachments:

 

1

Omarunui Landfill Financial Statements June 2018

CG-14-27-00032

 

 

 


Omarunui Landfill Financial Statements June 2018

Attachment 1

 

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