Minutes of Omarunui Refuse Landfill Joint Committee Meeting

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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, 20 September 2019 AT 1.00pm

Present: Councillor Heaps

Councillors Nixon (HDC)

Councillors Dallimore (Deputy Chair) and Tapine (NCC)

IN ATTENDANCE: Group Manager: Asset Management (Mr C Thew)

Waste and Data Services Manager (Mr M Jarvis)

Waste Planning Manager (Mr A Atkins)

Solid Waste Engineer (Mr P Doolan)

Solid Waste Operations Supervisor (Mr C Kuzman)

Waste Minimisation Lead (Mr R van Veldhuizen) (NCC)

Management Accountant (Mr J Tieman)

Health and Safety Manager (Ms J Kuzman)

Senior Health and Safety Co-ordinator (Mr N Bass)

Committee Secretary (Mrs C Hunt)

1. Apologies

Councillor Heaps/Councillor Nixon

That apologies for absence from Councillors Lawson and Redstone be accepted.

CARRIED

2. Conflicts of Interest

There were no declarations of conflicts of interest.

3. Confirmation of Minutes

Councillor Heaps/Councillor Dallimore

That the minutes of the Omarunui Refuse Landfill Joint Committee Meeting held Friday 21 June 2019 be confirmed as a true and correct record and be adopted.

CARRIED

Health and Safety Update Report

(Document 19/869)

The Senior Health & Safety Co-ordinator Ms Bass presented her report to the Committee regarding the Health and Safety Management at the Omarunui Refuse Landfill.

Councillor Nixon/Councillor Tapine

A) That the Omarunui Refuse Landfill Joint Committee received the report titled Health and Safety Update Report.

CARRIED

Annual Review of Hedging Strategy for Landfill Carbon Emissions

(Document 19/917)

The Management Accountant, Mr Tieman spoke to the report on the hedging strategy for carbon emissions at the Omarunui Landfill recommending that the Committee approve the signing of forward contracts to fix the price of New Zealand units for the 2021 calendar year at 100% cover along with additional cover for 2022 at 80% and 2023 at 60%.

By locking in a fixed price for purchase of NZU for a calendar year it would provide security in setting the gate price and that the users of the landfill were fully charged for the purchase of NZU to cover the landfill requirements under the ETS.

The Emissions Trading Scheme (ETS) levy collected would cover the forward contract and was consistent with Omarunui Refuse Landfill Joint Committee hedging strategy.

Councillor Heaps/Councillor Tapine

A) That the Omarunui Refuse Landfill Joint Committee received the report titled Annual Review of Hedging Strategy for Landfill Carbon Emissions.

B) That the Omarunui Refuse Landfill Joint Committee endorse the forward purchase contract for 107,100 New Zealand Units currently estimated at around $2,999,871 to fix the price of NZUs for the calendar years 2021, 2022 and 2023, in line with adopted policy. 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

Omarunui Joint Landfill Annual Report for the Year Ending 30 June 2019

(Document 19/918)

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 2018/2019 financial year and provide a commentary on other significant events and impacts.

Tonnages were higher than estimated with Napier City 5% above estimate, Hastings District 4% above estimate, commercial 1.5% above estimate and special 107% above estimate. The special waste was well above estimate due to the larger than expected volumes of asbestos, contaminated soil and food waste being received by the landfill.

The Landfill reported a surplus of $2,489,594 for the financial year ended 30 June 2019. The surplus of $2,489,594 was $1,226,552 above budget.

Maintenance - The site was in very good condition and expenditure on maintenance was less this year.

Refuse Disposal costs were above budget due to the increase in waste tonnages.

Leachate Treatment – expenditure on improving the reticulation and network.

Revenue - Total revenue was 17% more than estimated which was a reflection of the increased tonnage.

Future Development Work - It is expected that further work will be carried out on developing the gas capture system in the 2019/20 year. Relining of the leachate pond and potentially the lining of the leachate pit on top of Area A is planned.

Consent applications for Area B would be lodged prior to Christmas 2019.

Waste Levy – There has been no indication from Government that the Waste levy would be increased more than $10.00 per tonne.

Leachate and Tyres – The Landfill has been collecting $1.00 per tonne to deal with leachate. A tyre reserve was started in 2017/18 and this has a balance in the reserve (as of 30 June 2019) of $175,633. The reserve was to assist in the shredding and/or cartage of waste tyres.

It was noted that a business had been set up in Awatoto for shredding tyres which were then used in a cement kiln.

Opening Hours – To date the trial has been mostly successful with only one waste operator objecting to the change. Mr Jarvis advised that the trial would continue in the interim so that the impact of any seasonal changes of waste volumes and composition could be assessed.

Quality Assurance – The Asset Management quality system was externally audited for certification audited in February and recertified to 20 March 2022.

Resource Consent Compliance - The Omarunui Landfill was graded as “Fully Compliant” for all resource consents for the period 1 June 2018 to 31 May 2019, which was very good news.

The Management Accountant, Mr Tieman advised that the financial statements had been audited by Audit New Zealand but formal communication of any findings have yet to be received, but he did not believe there were any issues.

The cash surplus from the Landfill has been put in to the reserve for kerbside collection for the Waste Management and Minimisation Plan implementation.

Councillor Tapine/Councillor Nixon

A) That the Omarunui Refuse Landfill Joint Committee received the report titled Omarunui Joint Landfill Annual Report for the Year Ending 30 June 2019.

B) That the unaudited Omarunui Refuse Joint Landfill Financial Statements for the year ended 30 June 2019 (CG-14-111) be received.

C) That officers report back on how future dividends from the Omarunui Refuse Joint Landfill Committee can be utilised in the future.

CARRIED

Final Meeting – Councillor Nixon on behalf of the Joint Waste Futures Project Steering Committee advised that the Chair, Councillor Heaps would not be standing for re-election. He thanked and acknowledged Councillor Heaps for his passion and contribution during his time on the Committee.

Councillor Dallimore, who was not standing for re-election was also acknowledged and thanked for his contribution to the Committee.

7. Additional Business Items

There were no additional business items.

8. Extraordinary Business Items

There were no extraordinary business items.

________________________

The meeting closed at 2.15pm

Confirmed:

Chairman:

Date:

Date: Chief Executive:

Hastings District Council

Lyndon Road East, Hastings 4156