HASTINGS DISTRICT COUNCIL
MINUTES
OF A MEETING OF THE Omarunui
Refuse Landfill Joint Committee HELD IN THE Council Chamber, Ground Floor,
Civic Administration Building, Lyndon Road East, Hastings ON
Friday, 5 October 2018 AT 1.00pm
Present: Councillor Heaps
Councillors
Lawson and Nixon (HDC)
Councillors
Dallimore (Deputy Chair) and Tapine (NCC)
IN ATTENDANCE: Waste and Data Services Manager (Mr M Jarvis)
Chief
Financial Officer (Mr B Allan)
Waste Minimisation Officer (Mr A Atkins)
Management Accountant (Mr J Tieman)
Health
and Safety Manager (Mrs J Kuzman)
Senior Health and Safety Co-ordinator (Mrs N Bass)
General Counsel (Mr S Smith)
Committee
Secretary (Mrs C Hunt)
1. Apologies
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Councillor Heaps/Councillor Nixon
That an apology
for absence from Councillor Redstone be accepted.
CARRIED
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Leave of Absence
had previously been granted to Councillor Kerr.
2. Conflicts
of Interest
There were no
declarations of conflicts of interest.
3. Confirmation
of Minutes
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Councillor Heaps/Councillor Tapine
That the
minutes of the Omarunui Refuse Landfill Joint Committee Meeting held Friday
24 November 2017, including while the public were excluded be confirmed as a
true and correct record and be adopted.
CARRIED
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4.
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Health and Safety Report
(Document 18/127)
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It was noted that the Health and Safety Report
was from 1 January to 30 June 2018 and not 31 July 2018 as stated in the
Agenda Report.
Officers confirmed that personal risk
assessments were undertaken with duration of approximately 5 minutes using
phone/device, with no paperwork involved unless no coverage.
Council’s Health and Safety legal
obligations were met to ensure compliance and were not excessively over
compliant.
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Councillor Heaps/Councillor Dallimore
A) That
the report of the Senior Health & Safety Co-ordinator titled “Health
and Safety Report” dated 5/10/2018 be received.
CARRIED
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5.
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Annual Review of Hedging Strategy For Landfill
Carbon Emissions
(Document 18/841)
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The Management Accountant, Mr Tieman
advised that the purpose was to obtain a decision from the Committee on the hedging strategy for
carbon emissions at the Omarunui Landfill.
Mr Tieman recommended that the Committee
approve the signing of a forward contract to fix the price of New Zealand
Units (NZU) for the 2020 calendar year at 100% cover along with additional
cover for 2021 at 80% and 2022 at 60%.
The landfill currently had three forward contracts in place to
purchase a total of NZU 187,458 over the next two years (May 2019 and May
2020). There was a carry-over balance from the 2017 calendar year of 32
NZU which could be used to offset any shortfall in 2018.
The option
of signing a forward contract provided the least risk to the Landfill and
also allowed the Committee to set gate prices with certainty.
The Emissions
Trading Scheme (ETS) levy collected would cover the forward contract and was
consistent with Omarunui Refuse Landfill Joint Committee hedging strategy.
Mr Tieman
advised that extending the forward cover out to years 4 and 5 at 80% and 60%
respectively, allowed the landfill to secure price certainty. The rationale
for securing 80% in year 4 and 60% in year 5 was the difficulty of estimating
tonnes this far out.
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Councillor
Heaps/Councillor Dallimore
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.
CARRIED
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6.
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Omarunui Joint Landfill Annual Report for the year
ending 30 June 2018
(Document 18/)
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The Waste and Data Services Manager, Mr Jarvis advised
that the purpose of the report was 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.
The overall tonnage was 15% higher than estimate, with Napier City
5% above estimate, Hastings District 10% above estimate, commercial 14% above
estimate and special 51% above estimate.
The Landfill reported a surplus of $3,266,186 for the financial
year ended 30 June 2018. The surplus of $3,266,186 was $1,644,483 above
budget and was 27% more than estimated due to the
increased volumes of waste received at the site.
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.
Mr Jarvis
advised that 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 Joint Waste Management and
Minimisation Plan has been adopted by both Councils.
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Councillor Lawson/Councillor
Dallimore
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 Attachment 1 (CG-14-27-00032) of the Agenda Report be received.
CARRIED
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7. Additional Business Items
There were no additional business items.
8. Extraordinary
Business Items
There were no extraordinary business items.
________________________
The meeting closed at 2.20pm
Confirmed:
Chairman:
Date:
Hastings District Council