|
Friday, 20 September 2024
|
Te
Hui o Te Kaunihera ā-Rohe o Heretaunga
Hastings
District Council: Ōmarunui Refuse Landfill Joint Committee Meeting
Te
Rārangi Take
Report to Ōmarunui Refuse Landfill Joint Committee
|
Nā:
From:
|
Martin Jarvis, Waste and
Data Services Manager
|
|
Te Take:
Subject:
|
Wairoa District Council
Solid Waste Disposal
|
1.0 Executive Summary – Te Kaupapa Me Te
Whakarāpopototanga
1.1 The
purpose of this report is to inform the Ōmarunui
Refuse Landfill Joint Committee that the Wairoa District Council (WDC) is
seeking approval to dispose of up to 4,000 tonnes per annum of their solid
waste at the Ōmarunui Landfill on a short-term basis. The length of
term being sought is up to three years.
1.2 The
length of term being sought will enable the WDC to complete the consultation
and decision-making process with regard to the future of the Fraser Street
Landfill. A period of three years will also enable the WDC to re-apply
for consents and construct a new cell should the decision be made to continue
landfilling at the site.
1.3 Out
of district loads received at the Ōmarunui Landfill typically tend to be
one-off loads and have mostly involved special wastes (i.e. asbestos).
The most significant acceptance of “out of district” waste occurred
in 2002 when the landfill agreed to accept Gisborne District Council waste for
a period of time. During that period 11,000 tonnes of waste were
transported from Gisborne to Ōmarunui.
1.4 This
report concludes by recommending that the Committee approve the request from
the WDC to accept up to 4,000 tonnes per annum of their solid waste for a
period of up to three years, and that authority be delegated to the Chief
Executive, Hastings District Council to complete negotiations on mutually
agreed terms and conditions for accepting this waste.
3.0 Background – Te Horopaki
3.1 The matter of WDC solid
waste coming to the Ōmarunui Landfill was the subject of a report to the Ōmarunui Refuse Landfill Joint Committee on
20th February 2024. At that meeting the WDC also gave a
presentation to the Committee outlining their situation in terms of managing
solid waste in Wairoa. However, it was envisaged that any long-term
arrangement would preferably require the approval of the parent Councils
(HDC/NCC) and not just the Ōmarunui Refuse Landfill Joint Committee.
The relevant
wording of the resolution (Part “C”) from the 20 February 2024
Landfill meeting was as follows:
“That the Committee is
open to the possibility of accepting Wairoa District Council solid waste at
the Ōmarunui Landfill on a short-term and/or long-term basis and
that any confirmed request to accept Wairoa District Council solid waste would
be the subject of a separate report to the Committee and/or the parent councils
(Hastings District Council and Napier City Council)”.
3.2 The
WDC has traditionally taken the view that it should manage its own waste,
however in recent years this has become more difficult due to the timing of
recent major flood events and the impact that it has had on the remaining space
at their Fraser Street Landfill. The current landfill cell, which was
approaching capacity prior to accepting the extra flood related waste, will now
run short of space before the decision making and planning processes for
managing their future waste needs can be completed.
3.3 Generally,
the Ōmarunui Landfill does not accept “out of district
waste”. Waste originating from outside of Napier City Council (NCC)
and Hastings District Council (HDC) boundaries requires specific approval from
the “Facility Manager” (as defined in the Joint Heads of Agreement)
to be disposed of at Ōmarunui. While this is a self-imposed rule, it
is one that the landfill has operated under since opening in 1988 and adhered
to with relatively few exceptions. One of those exceptions was when solid
waste from the Gisborne district was accepted for a period.
3.4 On
27th August 2024 a formal request (attached to this report) was
received from the WDC asking that the Ōmarunui Landfill accept solid waste
from the WDC on a short-term basis. This arrangement would be for
up to 4,000 tonnes per annum for a period of up to three years.
3.5
In light of the limited time and volume requested by the WDC, this report seeks
approval from the Ōmarunui Refuse Landfill Joint Committee to accept this
waste. As the HDC is the administrating authority for the landfill (under
the landfill heads of agreement between the HDC and NCC), it is also
recommended that the Chief Executive of the HDC is delegated
authority to complete negotiations on mutually agreed terms and
conditions for accepting Wairoa District Council’s request. The
outcome of any agreement with the WDC would then be reported back to the
Committee.
4.0 Discussion – Te Matapakitanga
4.1 As
part of the WDC presentation to the Ōmarunui Refuse Landfill Joint
Committee on 20th February 2024, the WDC advised the Committee that
it would be looking to deposit 3,000 tonnes per annum should they formally
request use of the Omarunui Landfill. This amount has since increased to
4,000 tonnes per annum so that any anomalies, such as the 2024 flood event, are
allowed for. However, the WDC are expecting the amount of solid waste to
be in the order of 3,000 tonnes per annum and not necessarily 4,000 tonnes.
4.2 The
Ōmarunui Landfill is currently receiving around 95,000 tonnes of waste per
annum which is substantially more than the 3,000 tonnes typically received by
Wairoa, or even a peak of 4,000 tonnes per annum in the case of a natural
disaster or emergency event in the Wairoa District.
4.3 From
a technical viewpoint, Ōmarunui has the capacity to accept 4,000 per annum
from the WDC without impacting the overall life of the landfill to any great
degree. The landfill is currently constructing a new area of the site
(Area B) which will take 30 years to fill at a rate of 100,000 tonnes per
annum. This new area will open mid-2025.
4.4 Ōmarunui
does have an additional area (Area C) at the site and if this was to be
developed it would provide space for a further 40 to 50 years life at 100,000
tonnes per annum. In this regard Ōmarunui is in a good position to
manage solid waste in the region and accept WDC solid waste should it choose to
do so.
4.5
As the movement of solid waste around NZ has become more common, and involved
larger distances, the technical aspects of Wairoa transporting and disposing of
their waste at Ōmarunui are all
manageable. However, aspects of this would need to be discussed and
agreed to as part of any mutually agreed arrangement.
4.6 Regarding
the calculation of a charge rate for WDC solid waste, it is envisaged that this
would be based on the “Municipal Refuse” rate plus a margin to
cover the cost of capital that is currently being incurred by the HDC and NCC
in expanding the site.
4.7 Hazardous
or “special” wastes may not be accepted from Wairoa; however, this
will depend on the nature of the waste in question and can be discussed in
negotiations with the WDC when establishing the terms of any agreement.
This would include the setting of appropriate charge rates.
4.8 Charge
rates for WDC solid waste entering the site would need to be reviewed each year
following the annual Full Cost Accounting Model review of all charge rates at
Ōmarunui.
4.9 As
a point of clarification, the request from the WDC concerns access to the
Ōmarunui Landfill and not for the Ōmarunui Landfill and/or the parent
councils (HDC and NCC) to take ownership/responsibility for Wairoa’s
waste. As an example, if the Ōmarunui Landfill were to close because
of an abatement notice or fire, the WDC would need to make alternative
arrangements for their waste and at their own cost.
4.10 The
possible approval for the WDC to use the Ōmarunui Landfill is not
currently being offered to other parties residing or producing waste in the
Wairoa District.
5.0 Options – Ngā Kōwhiringa
Option One - Recommended Option
- Te Kōwhiringa Tuatahi – Te Kōwhiringa Tūtohunga
5.1 That
the Committee approve the WDC request to accept 4,000 tonnes per annum of their
solid waste for a period of up to three years at the Ōmarunui Landfill:
Positives
· The
Wairoa district has close ties with the Hastings and Napier region and this
option could provide a solution to the challenges and time constraints now
faced by the WDC. The Ōmarunui Landfill has previously assisted the
Gisborne District Council and this request could be considered in the same
vein.
· In
future the Ōmarunui Landfill could well be looking for additional waste if
existing volumes reduce because of legislative changes, competition by new
landfills and/or new disposal technologies. Solid waste received from
Wairoa could well help the Ōmarunui continue to be a financially and
economically viable operation well into the future.
Negatives
· By
possibly receiving this waste, it does slightly reduce the life of the
Ōmarunui Landfill.
· Controls
on the condition and content of the solid waste being received from Wairoa
would need to be introduced so that it would not result in any breach of
consent for the landfill.
· This
option does go against the historic position of the landfill to not accept out
of district waste as a general rule. There is the possibility some
members of the Napier and Hastings wider community would prefer not to see
solid waste from another region coming to Ōmarunui.
Option Two – Status Quo - Te
Kōwhiringa Tuarua – Te Āhuatanga o nāianei
5.2 That
the Committee doesn’t approve the WDC request to accept their
solid waste at the Ōmarunui Landfill:
Positives
· Controls
and acceptance processes for receiving WDC solid waste would not have to be
considered and managed.
· The
life of the Ōmarunui Landfill will be marginally longer.
Negatives
· The
WDC will need to find another landfill that will accept their solid waste until
a permanent solution could be put in place. Due to the limited number of
appropriately sized and constructed landfills remaining in the central region
of the North Island, this would involve significant travel distance and
associated cost for the WDC.
6.0 Next steps – Te Anga Whakamua
6.1 Should
the Ōmarunui Refuse Landfill Joint Committee adopt the recommended
options, the next step would be for the WDC and Ōmarunui Landfill managers
to undertake negotiations on mutually agreed terms and conditions for accepting
WDC solid waste. These terms and conditions would then be presented to
the Chief Executive HDC, for consideration and approval should he see fit.
Attachments:
|
1⇩
|
Letter - Temp Access to Ōmaranui Landfill - signed
|
CG-17-20-00030
|
|
|
Summary of
Considerations - He Whakarāpopoto Whakaarohanga
|
|
Fit
with purpose of Local Government - E noho hāngai pū ai ki te
Rangatōpū-ā-Rohe
The Council is required to give effect to the purpose of
local government as set out in section 10 of the Local Government Act 2002.
That purpose is to enable democratic local decision-making and action by (and
on behalf of) communities, and to promote the social, economic,
environmental, and cultural wellbeing of communities in the present and for
the future.
Link to the
Council’s Community Outcomes –
Ngā Hononga ki Ngā Putanga ā-Hapori
The Ōmarunui Landfill is a regional (HDC and NCC)
asset and as such takes a position of responsibility for solid waste disposal
over a wider area than that of single council activity. The discussion
of waste disposal options with the Wairoa District Council aligns with
“working with others” but on a broader and more provincial basis.
|
|
Māori
Impact Statement -
Te Tauākī Kaupapa Māori
The significance of impact was discussed
by the Committee members on 20th February 2024. At the time
it was felt that a formal request to accept Wairoa waste on a
long-term/permanent basis would require wider consultation, engagement, and
consideration. It was appreciated that in the Committee’s
decision that it was open to the possibility of taking Wairoa waste,
extensive consultation would not be necessary for accepting waste on a
short-term arrangement.
|
|
Sustainability
- Te
Toitūtanga
No impact at this time.
|
|
Financial
considerations -
Ngā Whakaarohanga Ahumoni
None at present.
|
|
Significance
and Engagement -
Te Hiranga me te Tūhonotanga
This decision/report has been assessed under the Council's
Significance and Engagement Policy as being of minor significance
at this point in time.
|
|
Consultation
– internal and/or external - Whakawhiti Whakaaro-ā-roto / ā-waho
No consultation required due to the
relatively short term of the request and small volume of solid waste
concerned.
|
|
Risks
Opportunity: No implications.
|
REWARD – Te Utu
|
RISK – Te Tūraru
|
|
N/A
|
N/A
|
|
|
Rural
Community Board –
Te Poari Tuawhenua-ā-Hapori
No implications.
|
|
Friday, 20 September 2024
|
Hastings
District Council: Ōmarunui Refuse Landfill Joint Committee Meeting
Te Rārangi Take
Report to Omarunui Refuse Landfill Joint Committee
|
Nā:
From:
|
Martin Jarvis, Waste and
Data Services Manager
|
|
Te Take:
Subject:
|
Ōmarunui Joint
Landfill Annual Report for the Year Ending 30 June 2024
|
1.0 Executive Summary
– Te Kaupapa Me Te
Whakarāpopototanga
1.1 The purpose
of this report is to update and inform the Ōmarunui Refuse Landfill
Joint Committee on the physical performance aspects of the
Ōmarunui Landfill for the 2023/2024 financial year and provide a
commentary on other significant events and impacts.
|
2.0 Recommendations -
Ngā Tūtohunga
A) That the Ōmarunui
Refuse Landfill Joint Committee receive the report titled Ōmarunui Joint
Landfill Annual Report for the Year Ending 30 June 2024 dated 20 September
2024.
B) That the
Committee receives the unaudited Ōmarunui Joint Landfill Financial
Statement for the year ended 30 June 2024 and attached as Appendix 1
(CG-14-27-00073).
|
3.0 Tonnages and Finance
3.1 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.
|
2022/23 actual
(tonnes)
|
2023/24 actual
(tonnes)
|
2023/24
estimated (tonnes)
|
|
Commercial
|
47,768
|
45,033
|
39,000
|
|
Special
|
14,878
|
11,071
|
17,000
|
|
HDC
|
31,078
|
22,601
|
20,000
|
|
NCC
|
19,499
|
17,369
|
17,000
|
|
Total
|
113,223
|
96,074
|
93,000
|
3.2 The overall
tonnage is 3.3% higher than estimate, with Napier City 2.17% above estimate,
Hastings District 13% above estimate, commercial 15.5% above estimate and
special 34.9% below estimate.
3.3 Overall
tonnages are 15.1% lower compared with last year’s tonnages. Napier City
has decreased 10.9%, Hastings District a 27.3% decrease, commercial a 5.7%
decrease and special a 25.6% decrease.
3.4 The
category “Commercial” includes all waste brought directly into the
landfill by private waste operators and excludes transfer station waste.
3.5 The
Landfill reported a surplus of $6,975,346 for the financial year ended 30 June
2024. This is supported by the Ōmarunui Landfill Joint Committee Financial
Statements for the year ended 30 June 2024 (Attachment 1). The financial
statements have not been audited by Audit NZ yet, this is scheduled for late
October. The surplus of $6,975,346 was $3,005,743 above budget and is
summarised as follows:
|
2022/23
Actual
|
Financial
Position
|
2023/24
Actual
|
2023/24
Budget
|
2023/24
Variance
|
% Variation
|
|
20,131,809
|
Total Revenue
|
21,596,026
|
18,407,568
|
3,188,458
|
17.3%
|
|
17,158,236
|
Total Expenditure
|
14,620,680
|
14,437,964
|
182,715
|
1.3%
|
|
2,973,573
|
Surplus before adjustments
|
6,975,346
|
3,969,604
|
3,005,743
|
75.7%
|
3.6 The actual compared
to estimated expenditure* in operations is as follows:
|
EXPENDITURE
|
Actual $
|
Budgeted $
|
Variance $
|
Variation %
|
|
|
|
Maintenance - Landfill
|
1,612,399
|
631,125
|
981,274
|
155.5%
|
|
|
Other refuse disposal
|
1,196,068
|
1,056,859
|
139,209
|
13.2%
|
|
|
External plant hire
|
1,265,438
|
800,000
|
465,438
|
58.2%
|
|
|
External plant hire escalations
|
216,626
|
100,000
|
116,626
|
116.6%
|
|
|
Leachate Treatment/Disposal
|
256,524
|
147,000
|
109,524
|
74.5%
|
|
|
Kiosk Charges
|
22,515
|
37,800
|
(15,285)
|
-40.4%
|
|
|
Ground & Surface Water Testing
|
185,911
|
39,080
|
146,831
|
375.7%
|
|
|
Gas to Energy
|
0
|
1000
|
(1,000)
|
-
|
|
|
Revaluation Decrement
|
27,767
|
|
27,767
|
|
|
|
Farm operations
|
14,251
|
12,100
|
2,151
|
17.8%
|
|
|
Rates
|
21,219
|
23,400
|
(2,181)
|
-9.3%
|
|
|
Overheads - Administrative
|
21,125
|
500
|
20,625
|
4124.9%
|
|
|
Depreciation
|
2,014,808
|
1,929,100
|
85,708
|
4.4%
|
|
|
Total
|
6,854,650
|
4,777,964
|
2,076,686
|
43.5%
|
|
*Excludes revaluation, waste levy and ETS
NOTE: The budgets
shown above were all set prior to Cyclone Gabrielle and never took into
consideration the follow-on impact of that event. This is one of the
consequences of having to determine gate charges and operating/developing costs
so far in advance of the actual year of operation. The positive is that
revenue was above budget and offsets the negative variance in expenditure.
4.0 Maintenance
4.1 Maintenance
costs exceeded budget due to the ongoing Cyclone Gabrielle repair work and
impact of additional waste volumes entering the site. This involved the
capping and remediation work in an older part of the landfill (Area A) that had
to be re-opened. The overspend was $981,274.
5.0 Refuse Disposal
5.1 This was
slightly higher than budgeted. The overspend was $139,209 against a
budget of $1,056,589. The extra costs mostly related to greater than
anticipated waste volumes entering the site and changes that were required at
the tip face.
6.0 External Plant Hire
6.1 External
plant hire is $465,438 higher than budget due to the work required in managing
additional volumes of waste and the capping work related to older parts of the
landfill (areas A and D) that were re-opened after Cyclone Gabrielle.
This capping work is still to be completed.
6.2 Additional
costs were also incurred when the landfill’s compactors were out of
action for repair/maintenance and extra plant was hired to cover that
operational work.
7.0 Leachate Treatment
7.1 Costs
relating to leachate disposal were over budget by $109,504. The landfill
typically spray irrigates leachate on the landfill cap by way of irrigation
pods. However, this method of managing leachate is not so effective
during winter (less evaporation) or during wetter weather (the cap becomes too
wet). As a result of wetter conditions and events such as Cyclone
Gabrielle, the landfill has not been able to spray irrigate as much as it would
have liked.
7.2 The
other method of managing leachate is for it to be carted off site for treatment
and disposal. This is a more expensive method of management but is the
only current alternative to spray irrigation at Ōmarunui. The
additional costs associated with carting leachate off-site are covered by the
landfill’s leachate reserve which is funded by a charge built into the
gate rate. The amount the reserve is funded by the gate charge has now been
increased from $2 per tonne to $3 per tonne to cover additional offsite
disposal costs.
7.3 The
transfer of remaining funds in the Waste Tyre Reserve fund (no longer required)
to the Leachate Reserve was the subject of a report to the committee on 20th
June 2024. This resulted in the transfer of $488,133
to the Leachate Reserve which had been depleted over the previous few years.
8.0 Ground & Surface Water Testing
8.1 Costs were
significantly higher than budgeted due to additional work relating to the new
Area B and contract escalations. Future budgets for this work will need
to be adjusted to include all the monitoring, sampling, and testing work now associated
with Area B. This includes the watercourses on the north-eastern side of
the site.
8.2 Additional
one-off costs have also been incurred as the sampling and testing work was
migrated to the same software system that the Council’s Three Waters
group use.
9.0 Revenue
9.1 Total
revenue was 15.9% up on budget. This is mainly due to higher tonnes and the
sale of some of the surplus carbon units that were no longer required.
|
REVENUE
|
Actual $
|
Budgeted $
|
Variance $
|
Variation
|
|
|
|
Commercial Operations
|
6,574,599
|
5,518,000
|
1,056,599
|
19.1%
|
|
|
Hastings District
|
1,861,406
|
1,548,000
|
313,406
|
20.2%
|
|
|
Napier City
|
1,470,297
|
1,462,000
|
8,297
|
0.6%
|
|
|
Other Revenue
|
1,400,328
|
26,266
|
1,107,930
|
4,218%
|
|
|
Rentals (Farm)
|
10,777
|
9,302
|
1,475
|
15.6%
|
|
|
Leachate
|
192,124
|
184,000
|
8,124
|
4.4%
|
|
|
Total
|
11,509,531
|
8,747,568
|
2,761,963
|
31.6%
|
|
10.0 Development Expenditure –
Areas A and D
10.1 The development costs
for the Ōmarunui Landfill for the 2023/2024 year were as follows:
|
Actual $
|
Budget $
|
Variance $
|
Variation %
|
|
$3,855,419
|
$2,160,275
|
1,520,144
|
70.4%
|
11.0 Development
Expenditure – Areas B and C
|
Actual $
|
Budget $
|
Variance $
|
Variation %
|
|
$7,435,259
|
$6,922,000
|
513,259
|
7.4%
|
12.0 Development Construction
Update
12.1 The construction of Stage 3A in Area D
was carried out by Fulton Hogan and included bulk earthworks, clay liner
construction, the installation of plastic (HDPE) liner and geosynthetic clay
systems, as well as the leachate collection system. Stage
3A was finished in August 2024 and rubbish is now being placed in that part of the landfill.
12.2 Stage 4 of Area D (yet to be completed)
was originally programmed to be construction before Stage 3A.
Unfortunately, these two stages had to be swapped around as Stage 3A is larger
and provides the landfill more capacity to accept waste in the short term.
The downside is that it’s a more expensive project and this resulted in
an over expenditure of the Area D cost centre. This will eventually be
offset by the less expensive Stage 4 work in the future.
12.3 Another contributing factor for the
over expenditure in both Area D and B development work is the cost of
constructing the clay liner. This has come about due to the lack of
suitable clay liner material onsite. As previously reported to the
committee, clay is now being imported to the landfill from other sites in
Hawke’s Bay. Currently material is being sourced from a location
near Ocean Beach
12.4 The development of Area B is required
so that the landfill continues to have adequate space for the region’s
waste beyond 2025. This is required as the current filling area (Area D)
will be full by late 2025 to early 2026 depending on tonnages received.
Work on this project has been brought forward due to the extra waste received
at Ōmarunui post Cyclone Gabrielle and as anticipated in the future. Due
to this phasing change, development expenditure for Area B was greater than
originally anticipated for the 2023/24 year.
12.5 Work
in Area B has included the completion of the enabling works and the start of
Stage 1 construction. The enabling work contract work was carried out by
Fulton Hogan and was completed in January 2024. This work included the
following:
· Environmental
Controls
· Stripping and
clearing
· Construction of
wetlands
· Sediment Retention
Pond
· Stormwater
reticulation
· Toe Key Undercut
(earthworks)
· Toe Key
Construction (earthworks)
· Access Tracks
12.6 The Stage 1 construction contract was
awarded to Goodmans/Gairs and this work started in February 2024. This
work includes substantial earthworks and clay liner construction. Stage 1 construction is scheduled to be
completed by mid-2025.
12.7 Work on Stage 1 has
progressed well throughout 2024 and at the time of writing this report all
earthworks have been completed and the clay liner is now being installed.
This work remains on track in terms of completion date.
12.8 As required by the resource consent for
Area B a peer review panel (PRP) has been established. The two appropriately
qualified and experienced engineers selected for the panel are Peter Askey (WSP
NZ) and Nigel Mark-Brown (Environmental Context Ltd). This panel was required
to be established and maintained so that the design, and other related matters,
were meeting the resource consent conditions,
12.9 The PRP engineers have reviewed the
design, specifications, and plans/drawings, as well as visiting the site on
three occasions (the last being 4th April 2014). The work to
date has been met with their approval. All queries raised by the PRP were
answered to their satisfaction. As part of their obligations the PRP have
prepared an annual report that has been submitted to Hawke’s Bay Regional
Council.
13.0 Operations
13.1 The main tipping area is currently
larger than preferred due to the distance between the tip face and the Stage 3A
filling area and the need to push the waste further before compacting it.
13.2 A new tip face and access road are
being constructed and will be fully operational by October 2024. This will
enable waste to be tipped closer to where it will be finally placed and
compacted in the Stage 3A area.
13.3 Due to the distance between the point
where refuse is currently unloaded and where it is finally placed and
compacted, our plant management contractor has been required to use additional
plant (bulldozer) to help push waste into the new landfill area for
compaction. This has resulted in some additional operational costs. The
new access road into the new Stage 3A area will enable the tip face to be
relocated into Stage 3A and therefore reduce the distance waste needs to be
pushed. This will reduce the cost of operating the tip area.
13.4 The decision to use two compactors has
been of significant benefit to the site. Better compaction is being
achieved and the landfill is also able to deal with larger peak volumes of
waste. However, it is unfortunate that the older compactor is now
requiring significant amounts of maintenance and repair work to keep it
operational. Landfill Committee approval (conditional on price) has since
been granted for the replacement of the older compactor and staff are currently
working though the procurement process to acquire a new machine. It is
important to note that once a machine has been selected the lead in time to get
it on site is approximately 12 to 18 months.
14.0 Education Centre and Office
14.1 Another project associated with the
Area B development involved the construction of an education centre and office
that overlooks the new landfill area.
14.2 The completion of this project was
slightly delayed because of Cyclone Gabrielle but has otherwise progressed
well, and without issue. A feature of this project was that 45% of the
materials used in the build were destined to be dumped at the landfill but were
able to be diverted and used on the project.
14.3 A Karakia/blessing of the Education
centre and office was held on 27 September 2023 and staff moved into the
building over the October/November period. The education part of the
building also became operational soon after that.
15.0 New Kiosk and Weighbridge
15.1 A new kiosk has
been constructed to replace the one that was flooded by Cyclone
Gabrielle. The kiosk was built by Atkin Construction as a variation to
their contract to build the new education centre and landfill office.
15.2 The new kiosk
was blessed on 26th February 2024 and became operational soon after
that.
15.3 The cost of the
new kiosk was partly funded by the insurance pay out received by the landfill
for the damage to the previous kiosk. Some of the materials used in the
construction of the building were also diverted from being landfilled.
15.4 The design of
the new kiosk was such that a second weighbridge could be installed on the
other side of the kiosk and still leave room for the slip road. This
means that one weighbridge can be used for vehicles entering the site and the
other weighbridge used to weigh trucks leaving the site. Additionally,
this allows maintenance work to be undertaken on one weighbridge while the
other is still operating and therefore allow the site to always remain open and
operational. The second weighbridge has since been installed and
commissioned.
16.0 Waste Levy
16.1 The waste levy was
collected at a rate of $50 per tonne during the 2023/24 year, however this
increased to $60 per tonne for the current 2024/25 financial year (starting 1st
July 2024). It is also important to note that the levy charge attracts
GST. The levy figures quoted in this report do not include the GST
amount.
16.2 The NZ Government has
recently announced that there will be further increases in the waste levy of $5
per tonne each year for the next three years. Therefore, future waste
levy charges at the landfill will be as follows:
· 1st July 2025 = $65 per tonne
· 1st July 2026 = $70 per tonne
· 1st July 2026 = $75 per tonne
17.0 Emissions Trading Scheme (Waste)
17.1 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 Ōmarunui Joint Refuse Landfill Committee.
17.2 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 for the
landfill. The ETS charge at Ōmarunui is now set at $77 per tonne of
waste.
17.3 In January 2024 the landfill
successfully applied for a Unique Emissions Factor (UEF) under the provisions
of the ETS. The UEF was granted in February 2024 and applies to the
landfill’s 2023 calendar year tonnages only.
17.4 The UEF needs to be reviewed annually
and always applies to the previous years’ ETS obligations (or tonnes of
waste in the case of a landfill). Unfortunately, the ETS works on a
calendar year which doesn’t mirror the Council’s financial year (1st
July to 30th June). This factor adds to the difficulty in
setting an appropriate charge at the gate that meets the financial requirements
of scheme compliance.
17.5 The application of the UEF to the 2023
calendar year waste tonnages resulted in a surplus of NZUs (New Zealand Units
required to offset emissions) held by the landfill. At the landfill
committee meeting held on 21st June 2024 a report to the committee
recommended the sale of surplus NZU’s to reduce the total number held by
the landfill. The committee approved that recommendation and the sale of
surplus units. The sale of the NZU’s was recorded against total
revenue and a reason for the above budget result.
17.6 The Government
is now proposing further amendments to the ETS and these will result in changes
to how a UEF is calculated and applied. An announcement, and confirmation
of the changes is expected before the end of the calendar year. It is therefore
not known (at the time of writing this report) how the Ōmarunui Landfill
will be impacted and what number of NZUs will need to be sacrificed for the
current 2024 calendar year and future years. The number of NZUs
sacrificed also depends on the amount of waste (tonnes) disposed of at the
landfill which is also an unknown until after the fact. An additional
complication relates to the fluctuating cost of purchasing an NZU which is
influenced by supply/demand and changes made to the scheme by the government.
17.7 In summing up the ETS situation, the
landfill will once again apply for a UEF in January 2025 with the purpose of
minimising ETS obligations as much as it can, and at the same time hold enough
NZUs to meet its obligations under the scheme. The number of unknowns
will make it difficult to set a gate charge for the 2025/26 financial, however
Council officers will endeavour to make the most accurate assumptions possible.
18.0 Landfill Gas
18.1 As the final cap is constructed over
more of the landfill, additional vertical gas wells will be installed in these
areas. All new wells are integrated into the gas collection
network. This results in more landfill gas being captured and further
reduces the opportunity of odour escaping into the atmosphere from the
compacted rubbish. The additional landfill gas will in turn provide the
gas to energy plant with more gas to process. Any excess gas is flared
off. Improvements and maintenance work has also been carried out on
sections of the gas pipe network that connects the wells to the flare and plant.
18.2 While the flare was only off for a few
days following Cyclone Gabrielle, the gas to energy plant (owned by LMS) was
unable to operate for an extended period. This was due to damage to the
region’s transmission grid and its inability to receive electricity from
the plant. The plant only became fully operational again in August 2023.
18.3 A second flare has now been installed
at the landfill. This flare is owned and operated by LMS Ltd (owner and
operator of the gas to energy plant) under a long-term lease agreement with the
landfill. Having two flares will enable one to be shut down for
servicing while the other is still working.
18.4 LMS have also replaced the old Waukesha
engine in the gas to energy plant with a higher rated and more efficient
Caterpillar engine. The new engine will destroy a greater volume of gas
and produce 20% more electricity.
18.5 The combination of the new engine and
second flare will help the landfill destroy a greater volume of gas which will
help control odour at the site and reduce Emission Trading Scheme (ETS)
compliance costs.
19.0 Landfill Disposal Cost
19.1 The full disposal
charge rate for general waste in the 2023/24 year was $191 (ex GST) per
tonne. This included the waste levy charge of $50 and an ETS charge of
$55 per tonne. The full disposal charge rate for general waste in the
current 2024/25 year is $233 per tonne (ex GST). This includes the waste
levy charge of $60 and an ETS charge of $77 per tonne. 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.
20.0 Cyclone Gabrielle
20.1 The landfill is
situated in an area of Hawke’s Bay that was severely impacted by Cyclone
Gabrielle. This resulted in damage to the site and the need to accept
extra waste at the same time.
20.2 Due to the extra flood
associated waste received, development work on new areas of the site had to be
brought forward. This resulted in additional development expenditure in
both Area D and Area B.
20.3 In response to the
event an older (closed) part of the landfill in Area A was reopened so
that the landfill could accept additional waste. That area now requires
re-capping. This work is continuing and is expected to be completed over
the coming 2024/25 year.
20.4 The amount of waste received in 2023
has had an ongoing impact with regards managing waste at the site and the
juggling of available space.
21.0 Skins/Pelts/Fleshings/Tannery Waste
21.1 The landfill continues
to receive tannery waste that includes skins, pelts, fleshings and chromate
sludge. Odour and airborne contaminates such as hydrogen sulphide and
ammonia, continue to be something staff need to deal with. To gain more information
on the matter, independent air quality specialists have been engaged to
undertake testing at the site. This has been previously undertaken;
however, it is something the landfill will need to carry out on a regular basis
so that the extent of the issue can be monitored and managed.
21.2 Measures to manage and control the
acceptance of these materials in the first instance have been introduced (as
previously reported to the committee) and include limiting the amount of
material coming in each day and the introduction of higher charge rates to
reflect the extra costs associated with the management and impact of this waste
stream. Over the last year we have seen a decrease in tannery waste
coming to the site with one client being able to divert up to 90% of their
tannery waste away from landfill.
21.3 In terms of protecting
staff, customers, neighbours, and the environment other measures have been, and
are being introduced. These include the use of personal gas monitors, the
logging and monitoring of data from the personal monitors, the use of respirators by staff and contractors, and
the requirement that all machinery working in the tip area have cabins with air
filtration systems installed. Due to the high concentration of certain
contaminates, the use of respirators by machine operators is still required in
cabins that have not been retro fitted with higher quality air filtration
systems. Fixed position air quality monitoring stations are also to be
installed at several locations at the landfill. While exact positions are still
to be decided upon, locations are likely to include the tip area and points
along the property boundary.
21.4 While consideration of
banning tannery waste is a possibility the landfill is trying to see how it can
safely operate by mitigating all the negative impacts and therefore continue to
accept this waste stream, albeit under controlled conditions. During the
year the volume of this waste entering the site has decreased which has helped
the situation. Along with the investment of new technology and
equipment, the landfill has been able to manage the risks around accepting this
type of waste more effectively. The site is therefore in a better
position to continue accepting this waste under the newly established
restrictions and conditions.
22.0 Health & Safety
22.1 The Ōmarunui
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”.
22.2 Additional
Health & Safety information, and matters relating to the performance of the
landfill over the course of the 2023/24 year, are the
subject of a separate report to this committee.
23.0 Landfill Fires
23.1 As stated in the Health and Safety report, there were six
fires at the Area D tip face over the reporting period. These were all minor
and were immediately dealt with by staff. A larger fire (not in the
reporting period) occurred in the early hours of Saturday 17th
August and required assistance from FENZ (Fire Service NZ) to extinguish.
23.2 It is often very difficult to determine the cause of a
landfill fire due to the varied nature and composition of solid waste.
However, the evidence we do have points to the growing number of lithium
batteries found in the waste stream. During the winter months hot ashes
in residential waste and fireworks at the time of Guy Fawkes can also cause
fires.
23.3 In response to the growing risk of fire, staff are looking
to introduce additional early warning systems near or around the Area D tip
face area. Different alarm/warning systems are currently being assessed
and it is hoped to have something in place over the next few months. At
the time of writing this report the introduction of a thermal camera system was
looking to be the preferred option.
23.4 The key to extinguishing a landfill fire is early detection
and the need to prevent it becoming too deeply embedded in the waste
mass. It is hoped that by intruding an early detection system the
landfill can at least manage the risk as much as possible.
23.5 Other future improvements include the incorporation of fire
detection and suppression systems into the design and construction of the new
Area B part of the landfill. A detection system that overlooks the whole
area will be installed along with fire hydrants.
24.0 ISO 9001 – Quality Assurance
24.1 The quality management
certification of the landfill is part of the Hastings District Council Asset
Management certification.
24.2 The Asset Management
quality system was externally audited for certification on the 7th
and 8th of February 2024 by Franz Assenmacher of Telarc SAI.
The HDC’s “AS/NZS ISO 9001 Standard” certificate has an
expiry date of 20 March 2025.
25.0 Resource Consent Compliance
25.1 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 if they arise.
25.2 The most recent
compliance report covered the period from 1st November 2022 to 31st
October 2023 and included the Cyclone Gabrielle event which had a severe impact
on the landfill. Full compliance was not achieved; however, these matters
were assessed as low risk.
26.0 Complaints
26.1 Typically landfill
complaints fall into two categories, that being complaints from (i) the public
i.e. neighbours, and (ii) landfill customers. The public complaints
traditionally concern odour, birds, insecure truck loads and litter blown from
the site.
26.2 I am pleased to report
that despite all that has happened over the last few years the number of
complaints remains low. Only four complaints were received by the
landfill over the last financial year. These were made by neighbours and
concerned odour. All complaints are investigated by landfill staff as
soon as they become aware of them. In two of the four cases landfill
staff believe the landfill was not to blame for the odour complaint as the wind
direction from the landfill went in a different direction. Wind direction
is something the landfill monitors and records continuously.
27.0 Staffing
27.1 Staff turnover
at the landfill has traditionally been minimal, however over the last few years
it has proven to be harder to retain and recruit staff in a tight employment
market. So far this calendar year I am pleased to report we have had a
well performing and stable group of staff members.
27.2 During the reporting period Ty Cooper
(previously the landfill’s Solid Waste Operations Supervisor)
resigned. Paul Webster has been appointed as the replacement to carry out
this role.
27.3 Gagan Kooner has been appointed to the
revised role of Landfill Technician. This is an important position that
will help the landfill report on all its consent conditions in a timely and
accurate way to the Hawke’s Bay Regional Council.
27.4 All other landfill positions have now
been filled, this has included the appointment of Diana Reid to the
Administrator role and Nathaniel Viajar to the Kiosk Operator position.
David Cook, Adam Kerr and Alex Alves were all recruited over the reporting
period to fill vacant landfill operator roles.
27.5 Lastly, we sadly acknowledge the recent
passing of Henry Pene (Landfill Forman). Henry joined the team in 2018
and was a great asset to the Ōmarunui Landfill over his years of service.
He a was a very dedicated staff member and had a passion for learning and
working within the waste industry. Henry was also a well-respected
employee within the wider HDC and with landfill customers and contractors alike.
We are all deeply saddened by his passing, and he is sorely missed.
28.0 Concluding Comments
28.1 This has been another
challenging year for the landfill. Staff have been required to juggle
available airspace so waste could still be received and that construction work
in Area A and D continue as planned. The Area A and D development work needs
to be completed as programmed so that the site doesn’t run short of
available airspace in the immediate future.
28.2 The impact of Cyclone
Gabrielle continues to haunt the landfill as older parts of the site that were
re-opened to take flood waste are still to be fully re-capped. The extra
waste that was received has meant that the remaining space at the site is managed
carefully.
28.3 Positives over the
year have included the opening of the new kiosk/second weighbridge and
obtaining a Unique Emissions Factor (UEF) under the Emissions Trading Scheme
(ETS). The kiosk and second weighbridge mark significant improvement to
the site, while the UEF has helped the landfill reduce its compliance
obligations under the ETS. Impending changes to the ETS will reduce some
of the benefit of our UEF, however our financial position is still expected to
be better than previously anticipated.
28.4 The new office and
education centre are working well. Landfill staff are very much
appreciative of the improved working environment.
28.5 The amount of waste
coming to the landfill over the 2023/24 year was slightly greater than expected
(by 3,000 tonnes) and it is anticipated that a similar amount will be received
over the 2024/25 year.
28.6 The issue of
air-quality at the tip face continues to be monitored and tested so that the
work environment can be understood and safely managed.
28.7 Proposed central
government changes and initiatives, will have an impact on the landfill.
Changes to the Waste Levy and ETS will add additional costs to what was
originally envisaged for the 2025/26 year. These costs will need to be
factored into the gate charge in future years. Taxes on landfill waste
account for over 50% of the gate charge and will continue to increase over
time. To avoid the higher charge rates waste produces will need to
seriously consider limiting the amount of waste they produce in the first
instance or have other sustainable options for it rather than using a landfill.
Attachments:
|
1⇩
|
Omarunui Landfill Annual Report June 2024
|
CG-14-27-00073
|
|
|
Summary of
Considerations - He Whakarāpopoto Whakaarohanga
|
|
Fit
with purpose of Local Government - E noho hāngai pū ai ki te
Rangatōpū-ā-Rohe
The Council is required to give effect to the purpose of
local government as set out in section 10 of the Local Government Act 2002.
That purpose is to enable democratic local decision-making and action by (and
on behalf of) communities, and to promote the social, economic,
environmental, and cultural wellbeing of communities in the present and for
the future.
Link to the
Council’s Community Outcomes –
Ngā Hononga ki Ngā Putanga ā-Hapori
Reporting on an activity that helps
create an environment that is appreciated, protected and sustained for future
generations.
|
|
Māori
Impact Statement -
Te Tauākī Kaupapa Māori
No implications.
|
|
Sustainability
- Te
Toitūtanga
Reporting on an activity that deals with
the safe disposal of residual waste. This information is for use in understanding
the wider issue of sustainability within the Hawke’s Bay region.
|
|
Financial
considerations -
Ngā Whakaarohanga Ahumoni
End of year financial information is
presented in this report. Variances from budget and expected financial
outcomes are explained.
|
|
Significance
and Engagement - Te
Hiranga me te Tūhonotanga
This decision/report has been assessed under the Council's
Significance and Engagement Policy as being of minor
significance.
|
|
Consultation
– internal and/or external - Whakawhiti Whakaaro-ā-roto / ā-waho
Not applicable
|
|
Risks
Opportunity: No implications
|
REWARD – Te Utu
|
RISK – Te Tūraru
|
|
N/A
|
N/A
|
|
|
Rural
Community Board –
Te Poari Tuawhenua-ā-Hapori
No Implications.
|
