Agenda of Ōmarunui Refuse Landfill Joint Committee Meeting

ŌMARUNUI REFUSE LANDFILL JOINT COMMITTEE HEADS OF AGREEMENT – Terms of Reference

The current Heads of Agreement for the Ōmarunui Refuse Landfill Joint Committee was adopted by Council on 8 December 2022 and are incorporated into the Committee & Rural Community Board Register of Delegations.

1.	Parties	Hastings District Council and Napier City Council (the Councils)
2.	Nature of Relationship	A Joint Committee between the Councils who already own a property at Ōmarunui as tenants in common in the following shareholding percentages for refuse disposal purposes: Hastings District Council: 63.68% Napier City Council: 36.32% The Councils recognise the connection of Ngāti Pārau Hapū to the site.
3.	Objectives	To jointly develop and operate generally for the benefit of the Councils a refuse disposal facility (including any ancillary activities) in compliance with resource and regulatory consents.
4.	Participation of each Council	Each Council shall participate on the basis of the following shareholding percentage: Hastings District Council: 63.68% Napier City Council: 36.32% (subject to any specific provisions following) The Councils also provide for one representative from Ngāti Pārau Hapū to be a voting member of this Joint Committee.
5.	Joint Committee
5.1	Omarunui Refuse Landfill Joint Committee (Joint Committee):	This Committee shall comprise four elected members of the Hastings District Council and two elected members of the Napier City Council and one representative from Ngāti Pārau Hapū or the alternates of those members and an alternate when acting in the place of a member shall be deemed to be a member. The functions of this Joint Committee shall be to determine policies to ensure the objectives are achieved and to monitor the implementation of those policies by obtaining reports from the Facility Manager or any other persons involved in the refuse disposal operation.
5.2	Administering Authority	The Hastings District Council shall be the Administering Authority. It shall provide technical, financial and secretarial services and shall be the employing authority for staff required in the administration and conduct of the refuse disposal operation. The Administering Authority shall make any information required by the Joint Committee available to that Committee.
6.	Joint Committee General Powers	1.1 Subject to Clause 6.2 the general powers of the Joint Committee shall be: a) Except as provided in Clause 6.3 all such powers as shall be necessary to develop and operate the refuse disposal facility in compliance with the resource and regulatory consents already obtained including, if necessary, the power to seek further resource and regulatory consents. b) To construct buildings, purchase and dispose of plant, equipment and materials. c) Arrange insurance cover to ensure that there is comprehensive insurance in respect of the establishment and operation of the refuse disposal facility. d) To indemnify any Council or Council representative acting on behalf of the Councils pursuant to this agreement in connection with the development or operation of the refuse disposal operation after the execution hereof. e) To fix and recover fees and charges payable by landfill users. f) The licensing of users. g) To recommend to the Councils the raising of loans. For the purpose of loan raising the ‘Administering Authority’ shall undertake all loan raising on behalf of the Councils. h) To enter into contracts within the estimates it being acknowledged by each of the Councils for the purposes of the Local Government Act 2002 that the Joint Committee shall be delegated power to enter into any contract limited to such an amount as may be fixed by the Councils from time to time unless the prior written approval of each Council shall have been obtained. i) Toi use any part of the Ōmarunui property not required for refuse disposal for any lawful purpose including leasing thereof. j) Such further specific powers as may be delegated to it as agreed by the Councils. 1.2 The Joint Committee shall operate within budgets approved by the Councils. In the event that over expenditure is anticipated or incurred the Joint Committee shall immediately report that fact to the Councils. 1.3 The powers delegated to the Joint Committee shall not entitle that Committee to sell or otherwise dispose of on behalf of any Council any asset owned by that individual Council or to sell the Ōmarunui land or any other land administered by the Joint Committee for refuse disposal purposes. 1.4 Subject to Clause 6.2 and 6.3 all decisions made by the Joint Committee pursuant to its delegated powers shall without confirmation of the Councils bind each of the Councils as if it had been done in the name of each Council.
7.	Joint Committee Procedural Matters	7.1 Each member or the alternate of such member shall have one vote. 7.2 The members shall elect a Chair and Deputy Chair. 7.3 Quorum at meetings shall be four elected members including at least one elected member from each Council. The parties note that this conflicts with the provisions in clause 30 (9) (b) of schedule 7 of the Local Government Act 2002. To avoid any possible doubt the parties shall operate the committee based on the specific requirements in this agreement at all times. 7.4 All meetings may be attended by officers of the Councils but officers shall not be entitled to vote. 7.5 Meetings may be requisitioned by any two elected members who shall state the nature of the business and the Administering Authority shall convene a meeting (giving notice of the business) and Councils shall ensure that at least one of their elected members attends. 7.6 Annual meetings shall be held within three months of the end of the financial year and the business of such meeting shall include the financial accounts for the previous year. 7.7 Budget estimates for the following financial year shall be prepared and supplied to the Councils no later than 31 January in each year for their approval. 7.8 Meeting procedures shall be in accordance with NZS 9202: 2003, or such other version of standing orders as mutually agreed between the parties, except to the extent that specific provision is contained herein and is not contrary to law.
8.	Joint Committee Financial Provisions	8.1 The Joint Committee shall provide financial and management accounting records and reports which provide sufficient detail to enable the committee and the Councils to assess performance of each separate business activity within the Landfill. 8.2 The administering authority shall circulate a draft budget prior to the meeting at which the Joint Committee is to consider the estimates for recommendation to the Councils. 8.3 Surpluses and deficits shall be received and borne by the Councils in the following shareholding percentage: Hastings District Council: 63.68% Napier City Council: 36.32% 8.4 All amounts payable by each Council shall be paid within one calendar month of notification of the amount payable. If any Council shall consistently fail to make payments as required by this clause the Joint Committee may impose a penalty on the defaulting Council which shall be met by such Council.
9.	Duties of the Individual Councils	9.1 To comply with the resource and regulatory consents relating to the operation. 9.2 The Councils shall make bylaws to ensure the efficient operation of the refuse disposal facility and set and adopt fees and charges and licensing procedures. 9.3 To establish and operate transfer stations and to adopt charges in relation to such transfer stations.
10.	Changes in Participation	1.1 The establishment and operating costs of the Councils up to the time of any Change in Participation shall be safeguarded as far as possible. 1.2 The addition or withdrawal of any party shall require agreement of the Councils.
11.	Staff Appointments	11.1 Where any Council is involved in the provision of staff or services, such Council shall be reimbursed for the cost of such persons or services. 11.2 It is recognised that it will be desirable for the staff required to be employed by one of the Councils.
12.	Facility Manager	12.1 The Facility Manager appointed by the Administering Authority shall be a suitably qualified person who shall report to the Joint Committee and attend its meetings and will be responsible for the day to day operations at the landfill site. 12.2 During any further development the Facility Manager, as appointed by the Administering Authority, shall be considered to be the officer responsible for all development activities unless otherwise directed by the Joint Committee.
13.	Secretarial Services	13.1 Secretarial and Accounting services shall be provided by the Administering Authority. 13.2 The functions to be fulfilled shall include: a) Convening of meetings. b) Keeping of minutes. c) Preparation of estimates and accounts. d) Keeping the Joint Committee informed. e) The recovery of fees and charges. f) Such further specific powers as may be delegated by agreement of the Councils. 13.3 All documents to be signed on behalf of the Joint Committee shall be signed by the Chair (or in his absence one elected member of that Committee) together with such other person authorised by the Administering Authority.
14.	Commencement and Duration	14.1 This Joint Committee shall commence from the date of this agreement and shall continue thereafter until terminated by agreement of the Councils. 14.2 On termination of this agreement the assets shall be applied, first, in the repayment of all debts, second, in the repayment of any capital contributions, advances or sums of money that may have been made or may be due to any of the Councils, third, the surplus, if any, shall be distributed between the Councils in the following shareholding percentage: Hastings District Council: 63.68% Napier City Council: 36.32% 14.3 In the event of a short-fall on the termination of this agreement the Councils shall contribute in the following shareholding percentage: Hastings District Council: 63.68% Napier City Council: 36.32% To such short-fall, with any necessary adjustments being made to reflect any amounts due by or to any individual Council at termination.
15.	Arbitration	15.1 In the event of any dispute relating to this agreement the same shall be referred to arbitration pursuant to the Arbitration Act 1996 and each Council who is a party to the dispute shall be entitled to appoint an Arbitrator. 15.2 The Arbitrators before embarking on the Arbitration shall appoint an umpire whose decision shall be final in the event that the Arbitrators are unable to agree.
16.	Substitution	16.1 This agreement substitutes and revokes the previous Heads of Agreement dated 4 October 2010.

Friday, 27 February 2026

Te Hui o Te Kaunihera ā-Rohe o Heretaunga

Hastings District Council: Ōmarunui Refuse Landfill Joint Committee Meeting

Te Rārangi Take
Report to Omarunui Refuse Landfill Joint Committee

Nā:

From:

Martin Jarvis, Interim Group Manager: Waste, Parks & Cemeteries

Te Take:

Subject:

Ōmarunui Joint Landfill Annual Report for the Year Ending 30 June 2025

1.0 Executive Summary – Te Kaupapa Me Te Whakarāpopototanga

1.1 //hdcfp1/data/Infocouncil/Templates/report_guidance.pdfThe 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 2024/2025 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 2025 dated 27 February 2026.

B) That the Committee receives the unaudited Ōmarunui Joint Landfill Financial Statement for the year ended 30 June 2025 and attached as Appendix 1 (CG-17-20-00057).

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.

	2023/24 actual (tonnes)	2024/25 actual (tonnes)	2024/25 estimated (tonnes)
Commercial & Special	59,281	52,500	59,000
HDC	19,408	18,906	19,000
NCC	17,373	16,825	17,000
Total	96,062	88,231	95,000

3.2 The overall tonnes for 2024-25 were down on budget by 7.1% and 8.2% on the previous year.

3.3 The category “Commercial” includes all waste brought directly into the landfill by private waste operators and includes “Special Waste”.

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3.4 The Landfill reported a surplus of $7,827,418 for the financial year ended 30 June 2025. This is supported by the Ōmarunui Landfill Joint Committee Financial Statements for the year ended 30 June 2025 (Attachment 1). The financial statements have been audited by Ernst & Young (EY) with no issues being raised. The surplus of $6,975,346 was $3,068,673 above budget and is summarised as follows:

2023/24 Actual	Financial Position	2024/25 Actual	2024/25 Budget	2024/25 Variance	% Variation
21,596,026	Total Revenue	22,653,168	22,794,568	(141,400)	0.62%
14,620,680	Total Expenditure	14,825,750	18,005,823	3,180,073	17.7%
6,975,346	Surplus before adjustments	7,817,418	4,788,745	3,038,673	63.5%

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

EXPENDITURE	Actual $	Budgeted $	Variance $	Variation %
EXPENDITURE	Actual $	Budgeted $	Variance $	Variation %
Refuse disposal	1,428,570	1,251,655	176,915	14.1%
External plant hire	1,025,174	1,000,000	25,174	2.5%
External plant hire escalations	211,662	200,000	11,662	5.8%
Maintenance - Landfill	1,803,594	642,588	1,161,006	180.7%
Leachate Treatment/Disposal	334,812	280,500	54,312	19.4%
Kiosk Charges	9,655	37,800	(28,145)	74.5%
Ground & Surface Water Testing	158,129	39,080	119,049	304.6%
Gas to Energy	-	1,000	(1,000)	-
Revaluation Decrement	-	-	-
Farm operations	12,712	12,700	12	0.09%
Rates	26,468	23,400	3,068	13.1%
Overheads - Administrative	5,100	500	4,600	920%
Depreciation	2,321,699	2,001,600	320,099	16%
Waste Levy	5,715,886	5,700,000	15,886	0.28%
ETS**	1,772,289	6,815,000	(5,042,711)	74%
Total	14,825,750	18,005,823	3,180,073	17.7%

**ETS was lower than budget due to surplus units purchased in the previous year and the sale of units that were not required, with funds being better used to offset the development costs of Area D and B of the site.

4.0 Refuse Disposal

4.1 This was 14.1% higher than budget with contracted services from Stantec being the major contributor.

5.0 Maintenance and Operations

5.1 Maintenance Landfill expenditure is a catch all line within the annual report that captures any expenditure code that does not fit within any of the other categories. This mainly covers one off expenses that are unbudgeted, hence the large variance between actual and budget. However, with any unbudgeted expenditure, budget is sacrificed in other areas to cover these costs, which is reflected in the overall underspend for total expenditure.

5.2 The site is in good condition and maintenance work has been carried out as programmed. The landfill’s silt capture ponds are working well and are being cleaned out on a regular basis. The largest of the ponds (at the bottom of Area D) was cleaned out during the year. This work can only be done in the drier months when less stormwater runoff is anticipated.

5.3 The two large leachate ponds and spray irrigation system is working well. Leachate levels in the ponds are always kept as low as possible. This is a precautionary measure to deal with any heavy rainfall events when they occur.

5.4 A new tip face and access road were constructed during the year. This enabled waste to be tipped closer to the filling area in the newly constructed Stage 3A part of Area D. This reduced the distance that waste had to be pushed by bulldozers and compactors. Making this change has reduced tip face and plant management costs in the later part of the year.

5.5 The decision to use two compactors has been of significant benefit to the site. Better compaction is being more consistently achieved, and the landfill can continue compaction operations even when one compactor is being serviced. Due to the age and condition of the older compactor, the Landfill Committee approved the purchase of a replacement compactor last year. The old compactor was traded in as part of the purchase agreement for the new machine which was delivered to the site in December 2025.

5.6 A significant amount of planting has been carried out over the year. Planting and landscaping were required as part of consent conditions applying to both Area D and Area B. Over 6,000 native plants and trees have been planted in recent years. This landscaping has the benefit of visually screening the landfill as well as preventing dust migration and helping with noise and odour issues.

6.0 Leachate Treatment

6.1 Costs relating to leachate disposal were over budget by $54,312. 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, leachate needs to be trucked to the waste treatment plant in Clive. The Landfill operates a reserve where $3 per tonne is included in the gate price to cover costs during wetter months. Any spend over and above the budget is covered by the reserve.

7.0 Ground & Surface Water Testing

7.1 Costs were significantly higher than budgeted due to additional work relating to the new Area B. 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.

7.2 Additional one-off costs have also been incurred as a variation to some monitoring conditions was sought from the HBRC.

8.0 Revenue

8.1 Total revenue was down 0.6% for the year versus budget, even though tonnes were down 7.1%. this is due to other revenue and the recognition of increased values of the forward contract for ETS (Other Revenue)

REVENUE	Actual $	Budgeted $	Variance $	Variation
REVENUE	Actual $	Budgeted $	Variance $	Variation
Commercial Operations	6,078,069	6,111,000	(32,931)	0.54%
Hastings District	1,746,497	1,767,000	(20,503)	1.16%
Napier City	1,584,845	1,581,000	3,845	0.24%
Other Revenue	880,604	26,266	854,338	3252%
Rentals (Farm)	10,777	9,302	1,475	15.9%
Leachate	264,694	285,000	(20,306)	7.1%
Waste Levy	5,293,875	5,700,000	(406,125)	7.1%
ETS	6,793,807	7,315,000	(521,193)	7.1%
Total	22,653,168	22,794,468	(141,400)	0.6%

9.0 Development Expenditure – Areas A and D

9.1 The development costs for the Ōmarunui Landfill Areas A and D for the 2024/2025 year were as follows:

Actual $	Budget $	Variance $	Variation %
$2,660,546	$3,635,275	$974,729	26.8%

10.0 Development Expenditure – Areas B and C

10.1 The development costs for the Ōmarunui Landfill Areas B and C for the 2024/2025 year were as follows:

Actual $	Budget $	Variance $	Variation %
$7,045,149	$7,422,000	$376,851	5.1%

11.0 Development Construction Update

11.1 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.

11.2 Stage 4 of Area D (yet to be completed) was originally programmed to be construction before Stage 3A. However, these two stages were swapped around as Stage 3A is larger and provides the landfill more capacity to accept waste in the short term. Stage 4 of Area D will now be constructed in two parts starting in January 2026.

11.3 The development of Area B is required so that the landfill continues to have adequate space for the region’s waste beyond 2026. This is required as the current filling area (Area D) will be full by early 2027 depending on tonnages received. As tonnages have reduced significantly over the last two years, the life of Area D has been extended beyond the late 2025 date previously reported to the Committee.

11.4 Work in Area B has included the completion of the enabling works and the Stage 1 liner construction. The enabling work contract work was carried out by Fulton Hogan and was completed in early 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

11.5 Stage 1 construction of Area B followed the enabling work contract and was awarded to Goodmans. This work started in February 2024 and was substantially completed a year later in February 2025. The work included significant earthworks, clay liner construction and the installation of the Geosynthetic Clay Liner (GCL) and plastic liner (HDPE).

11.6 A variation to the Stage 1 contract to complete all ancillary work involved in finishing construction to a point where waste can be disposed of in the new area was also carried out by Goodmans. The ancillary work included the leachate drainage blanket, leachate system, water supply network, power, gas extraction system, pump stations and access roads. This work was substantially completed in October 2025.

11.7 As required by the resource consent for Area B a peer review panel (PRP) was established. The two appropriately qualified and experienced engineers selected for the panel were 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.

11.8 The PRP engineers have reviewed the design, specifications, and plans/drawings, as well as visiting the site on five occasions (the last being 4^th June 2025 in the 2024/25 year). The work to date has met with their approval. All queries raised by the PRP have been answered to their satisfaction. As part of their obligations the PRP prepare an annual report that is then submitted to the Hawke’s Bay Regional Council by 1^stMarch each year.

12.0 Education Centre (Te Whare Mukupara) and Office

12.1 Another project associated with the Area B development involved the construction of an education centre and office that overlooks the new landfill area. Built in 2023/24 using 60% diverted materials, Te Whare Mukupara is the only education centre located within a working landfill in New Zealand. In the 2025 year, more than 2,000 children visited to learn about how Ōmarunui operates and to explore ways they can reduce waste within their schools. It’s not just schools either — businesses, sector groups, working groups, and not‑for‑profit organisations have also been booking tours and presentations to better understand how they can minimise their waste impact.

12.2 The office that forms part of the building is operating well and provides staff with an appropriate working environment. This space has also provided ideal for landfill meetings and accommodating visiting consultants, contractors and landfill business visitors.

13.0 New Kiosk and Weighbridge

13.1 The new kiosk and second weighbridge constructed post Cyclone Gabreille and commissioned in 2024 are performing extremely well. 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.

13.2 The design of the new kiosk was such that the second weighbridge could be installed on the opposite side of the kiosk to the existing weighbridge 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. This setup also allows maintenance work to be undertaken on one weighbridge while the other is still operating.

14.0 Waste Levy

14.1 The waste levy was collected at a rate of $60 per tonne during the 2024/25 year, however this increased to $65 per tonne for the current 2025/26 financial year (starting 1^st July 2025). It is also worth noting that the waste levy charge attracts GST. However, the levy figures quoted in this report do not include the GST amount.

14.2 The NZ Government previously decided to increase the waste levy by $5 per tonne each year for three years. This has resulted in the following waste levy charges at the landfill:

· 1^st July 2025 = $65 per tonne

· 1^st July 2026 = $70 per tonne

· 1^st July 2027 = $75 per tonne

15.0 Emissions Trading Scheme (Waste)

15.1 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.

15.2 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 for 2024-25 was set at $77 per tonne of waste.

15.3 In January 2025 the landfill successfully applied for a Unique Emissions Factor (UEF) under the provisions of the ETS. The UEF was granted in February 2025 and applies to the landfill’s 2024 calendar year tonnages only.

15.4 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 (1^st July to 30^th June). This factor adds to the difficulty in setting an appropriate charge at the gate that meets the financial requirements of scheme compliance.

15.5 The Government introduced further amendments to the ETS, and these resulted in changes to how a UEF is calculated and applied. This affected how Ōmarunui Landfill administered the handling of ETS. As a result, Office took a paper to the landfill committee on 13^th June 2025, where the committee approved the establishment of a reserve for the ETS revenue to be held for purchasing the annual requirement to settle each calendar year with the Ministry of Environment.

15.6 In summing up the ETS situation, the landfill will once again apply for a UEF in January 2026 with the purpose of minimising ETS obligations as much as it can, and at the same time hold enough NZUs and reserve funds to meet its obligations under the scheme. The number of unknowns will make it difficult to set a gate charge for the 2026/27 financial, however Council officers will endeavour to make the most accurate assumptions possible.

16.0 Landfill Gas

16.1 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.

16.2 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.

17.0 Landfill Disposal Cost

17.1 The full disposal charge rate for general waste in the 2024/25 year was $233 (ex GST) per tonne. This included the waste levy charge of $60 and an ETS charge of $77 per tonne. The full disposal charge rate for general waste in the current 2025/25 year is $233 per tonne (ex GST). This includes the waste levy charge of $65 and an ETS charge of $56 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.

18.0 Cyclone Gabrielle

18.1 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.

18.2 In response to the cyclone an older (closed) part of the landfill in Area A was reopened so that the landfill could accept additional waste. That area now requires final re-capping. This work is continuing and is expected to be completed over the coming 2025/26 year.

19.0 Skins/Pelts/Fleshings/Tannery Waste

19.1 The landfill continues to receive tannery waste that includes skins, pelts, fleshings and chromate sludge. The volumes of this waste stream did however diminish over the course of the year, and this contributed to an overall reduced tonnage for Special Wastes.

19.2 Odour and airborne contaminates such as hydrogen sulphide and ammonia, that can be attributed to this special waste stream, continue to be something staff need to deal with. Over the last 4 years, independent air quality specialists have been engaged to undertake testing at the site so that the extent of the issue can be monitored and managed.

19.3 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.

19.4 While consideration of banning tannery waste from the landfill was considered as another option, the reduced volumes now make it more manageable. At these levels the landfill can safely operate by mitigating the negative impacts of this waste, albeit under controlled conditions. 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 than previously.

20.0 Health & Safety

20.1 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”.

20.2 Additional Health & Safety information, and matters relating to the performance of the landfill over the course of the 2024/25 year, are the subject of a separate report to this committee.

21.0 Landfill Fires

21.1 As previously reported during the 2024/25-year fires at the landfill continue to be of significant concern. 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.

21.2 In response to the growing risk of fire, staff trialled two different warning systems in and around the Area D tip face area. These systems were assessed and are now in the process of being permanently deployed in the disposal areas of the landfill. One system utilises thermal (heat detection) camera technology and the other is a smoke detection system.

21.3 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 early detection systems the landfill can at least manage the risk as much as possible.

22.0 ISO 9001 – Quality Assurance

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

22.2 The Asset Management quality system was externally audited for certification on the 7^th and 8^th 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.

22.3 Currently the Council’s participation in the ISO 9001 qualification is being reviewed and is paused pending a decision later in the 2026/27 year.

23.0 Resource Consent Compliance

23.1 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.

23.2 For the compliance period dating October 2024 to November 2025 full compliance was achieved with all consents.

24.0 Complaints

24.1 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.

24.2 The 2024/25 year represented the lowest number of annually recorded complaints received over the last 20 years. Only one complaint was received and that was from an Ōmarunui Road resident living closer to State Highway 50 rather than the landfill. The complaint concerned engine braking noise from trucks using Ōmarunui Rd. On investigation the trucks were discovered to be working for the Hawkes Bay Regional Council (HBRC) and carting limestone from the Area B quarry at the landfill. This material was being used for flood protection repair work at Waiohiki.

25.0 Staffing

25.1 Staff turnover at the landfill has traditionally been minimal and that continues to be the case. I am pleased to report we have had a well performing and stable group of staff members. During the reporting period only one position was required to be filled following a resignation.

26.0 Concluding Comments

26.1 The impact of Cyclone Gabrielle continued to haunt the landfill during the year as more flood waste made its way to the site and areas of the landfill that had already received flood waste needed to be re-capped. The last of the flood waste is expected to be deposited at the site during the 2025/26 year.

26.2 Overall, the amount of waste coming to the landfill over the 2024/25 year was less than expected (by 7,000 tonnes) and it is anticipated that this trend will continue over the 2025/26 year. If it wasn’t for the flood waste received in the 2024/25 year, the annual total would have been reduced by a further 4,400 tonnes.

26.3 Construction of Stage 1 in the new Area B part of the landfill was substantially completed during the year. This is a major milestone for the landfill and is the first step in opening up 3 million cubic metres of capacity at the site. Area B will continue to be developed over a 30-year period and at a rate that keeps pace with the volume of waste being received at the landfill.

26.4 During the year the landfill was successful in renewing its Unique Emissions Factor (UEF) under the Emissions Trading Scheme (ETS). By obtaining a UEF the landfill significantly reduces its obligations under the ETS.

26.5 The new kiosk and second weighbridge are continuing to work extremely well. Access to and from the site is flowing smoothly and efficiently.

26.6 Full compliance was achieved for all landfill operating consents (October 2024 to November 2025 reporting period).

26.7 The education centre (Te Whare Mukupara) is proving to be a great success. In the 2025 year, more than 2,000 children visited to learn about how Ōmarunui operates and to explore ways they can reduce waste within their schools. Te Whare Mukupara is also being used to host businesses, sector groups, working groups, and not‑for‑profit organisations so they can gain a better understanding about how the landfill works and how they can minimise their waste.

26.8 The office that forms part of Te Whare Mukupara continues to operate well and provides staff with an appropriate working environment. This space has also provided ideal for landfill meetings and accommodating visiting consultants, contractors and landfill business visitors.

26.9 Central government changes and initiatives have had an impact on the landfill. Changes to the Waste Levy and the way that Unique Emission Factors (UEFs) can be calculated will add additional costs to the gate charge. Taxes on landfill waste account for over 50% of the gate charge and will continue to increase over time.

Attachments:

1 ⇩

Ōmarunui Refuse Landfill Joint Committee Annual Report 30th June 2025

CG-17-20-00057

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

There are no direct implications on the Māori community from this report apart from those that are applicable to the general community.

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

Rural Community Board – Te Poari Tuawhenua-ā-Hapori

No Implications.

Friday, 27 February 2026

Te Hui o Te Kaunihera ā-Rohe o Heretaunga

Hastings District Council: Ōmarunui Refuse Landfill Joint Committee Meeting

Te Rārangi Take
Report to Omarunui Refuse Landfill Joint Committee

Nā:

From:

Martin Jarvis, Interim Group Manager: Waste, Parks & Cemeteries

Te Take:

Subject:

Six Month Activity Report

1.0 Purpose and summary - Te Kaupapa Me Te Whakarāpopototanga

1.1 The purpose of this report is to inform the Ōmarunui Refuse Landfill Joint Committee on landfill activities for the six-month period ending 31^st December 2025.

2.0 Recommendations - Ngā Tūtohunga

That the Ōmarunui Refuse Landfill Joint Committee receive the report titled Six Month Activity Report dated 27 February 2026.

3.0 Finance and Tonnages

3.1 The financial position of the main accounts as of 31^st December 2025 are as follows:

	$ 6 month actuals	$ 6 month budget	$ 6 month variation
Revenue	9,445,766	10,741,389	(1,295,622)
Expenditure	5,899,667	9,435,782	(3,536,115)
Net surplus from operations	3,546,100	1,305,607	2,240,493

The net surplus from operations as of 31^st December 2025 is $2,240,493 above budget. This is mainly driven by the change in how we manage the ETS purchase, which historically was phased monthly, but under the new reserve process the committee approved back in June 2025, it will be a one-off annual purchase in May. Therefore, this will correct itself at that point in time.

3.2 Overall tonnages year to date are below budget by 6,532 tonnes or 14.5%.

Activity	6 month actual	6 month budget	6 month variance	Annual budget
Commercial & Special	20,709	26,500	-5,791	53,000 t
HDC	9,259	10,000	-741	20,000 t
NCC	8,500	8,500	0	17,000 t
Total	38,468	45,000	-6,532	90,000 t

3.3 Tonnages are currently tracking down on last year’s actual YTD total (38,468 tonnes versus 47,667 tonnes). This is reflective of the slower pace of the economy at the moment.

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The spike in tonnages in the November 2024 period was due to the last of the Cyclone Gabrielle flood waste that required landfill disposal. This waste was predominately screenings from the silt recovery work that was completed last calendar year.

4.0 Development update for Areas A & D

4.1 Year to date $931,908 has been spent on the construction of development work. The development budget for the full year is $2,705,716. To date this represents an under spend of $420,949 for the six-month period; however, this budget is expected to be overspent by the end of the year. Savings in the development budget for Area B will cover any overspend. This situation has come about due to a later opening of Area B than originally planned and a programme change to bring forward capping work in Area D.

4.2 A location plan showing the different disposal areas (closed, current and future) at the landfill is attached to this report (Attachment 2).

4.3 During the current 2025/26 year it is intended to complete the remaining construction work on the Area A final cap. This work will be carried out by our onsite plant management contractor, MW Lessette. It is also planned to construct part of the final cap in Area D prior to the end of the financial year. This work is currently being tendered.

4.4 The final section of Area D to be lined and filled is Stage 4. Once this section is constructed and filled with refuse the whole of Area D will be closed off as a disposal area. All refuse will then be directed to Area B.

4.5 Construction of the Stage 4 liner in Area D will be carried out in two parts. The first part will be built in the current financial year and the second part in the 2026/27 year. The contract for this work has been awarded to Goodmans (Goodman Contractors Ltd). Stage 4 will be sufficient in size to accept refuse for a period of 18 months depending on waste volumes.

5.0 Development update for Area B

5.1 The development of Area B is required so that the landfill continues to have adequate space for the region’s waste beyond 2026. This is needed as the current filling area (Area D) will be full by early 2027 depending on tonnages received. As tonnages have reduced significantly over the last two years, the life of Area D has been extended beyond the late 2025 date previously reported to the Committee.

5.2 To date in the 2025/26 financial year $681,303 has been spent on the Area B development project. The 2025/26 annual budget for this work is $4,989,007. To date the current amount spent represents an underspend of $1,813,200 for the six-month period. This budget will continue to be underspent throughout the financial year. This is due to the later than planned opening of Area B and a rescheduling of further development work.

5.3 Stage 1 construction of Area B followed the enabling work contract and was awarded to Goodmans. This work started in February 2024 and was substantially completed a year later in February 2025. The work included significant earthworks, clay liner construction and the installation of the Geosynthetic Clay Liner (GCL) and plastic liner (HDPE).

5.4 A variation to the Stage 1 contract to complete all ancillary work involved in finishing construction to a point where waste can be disposed of in the new area was also carried out by Goodmans.

5.5 The ancillary work included the leachate drainage blanket, leachate system, water supply network, power, gas extraction system, pump stations and access roads. This work was substantially completed in October 2025.

5.6 On 15^th January 2026 the first loads of waste were deposited in the Stage 1 of Area B.

5.7 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.

5.8 The PRP engineers have reviewed the design, specifications, and plans/drawings, as well as visiting the site on six occasions (the last being 18^th November 2025). The work to date has met with their approval. All queries raised by the PRP were answered to their satisfaction. As part of their obligations the PRP prepare an annual report that is then submitted to the Hawke’s Bay Regional Council by 1^stMarch each year.

6.0 Operations and Maintenance

6.1 Most refuse in this reporting period was disposed of in Area D (Stage 3A) of the landfill. However, as of 15^th January 2026 the landfill is now placing some waste in the new Area B part of the site. Both areas will be used simultaneously until Area D is completely full. The reason for the overlap is that only a certain type of waste can be placed at the base of the new landfill. This waste is referred to as a “fluff layer” and is mostly kerb side waste. This waste comes from residential wheelie bins and is more suited for placement near the bottom liner of a landfill rather than other types of waste received at the site.

6.2 Overall, the site is in good condition and maintenance work has been carried out as programmed. The landfill’s silt capture ponds are in good shape and working well. These ponds a cleaned out on a regular basis or whenever the need requires. The largest of the ponds (at the bottom of Area D) was cleaned out last year.

6.3 A new replacement compactor started operating at the landfill in December 2025. The old compactor was traded-in as part of the purchase agreement for the new machine. By operating two compactors at the site a high level of compaction can be consistently achieved. This ensures that all available airspace is maximised for the greatest amount of waste received by the landfill. Having two compactors will also prove very useful when we are required to have at least one machine in each operating part of the landfill, that being Area B and Area D.

6.4 Fires at the tip face continue to be a concern at the landfill. As previously reported to the committee, landfill staff have been looking at installing an early warning/detection system at the site. The main concern is that a fire will start outside of normal operating hours and will burn for a long period of time before being seen or reported. The quicker a fire can be detected, the easier it is to deal with. Fires that become deep seated in a landfill become extremely hard to put out and can take weeks to fully extinguish.

6.5 Two different methods of fire detection have been trialled, and both proved to be effective. Both systems will now be installed permanently at the site. The first system installed uses thermal cameras (AI integrated) which are located at the tipping area. The cameras can detect a fire and send a message to the on-call staff member and/or a contracted security company. The quicker a fire can be detected, the easier it is to deal with. Fires that become deep seated in a landfill become extremely hard to put out and can take weeks to fully extinguish. The second system selected uses smoke detection technology to warn of fires and proved to be very effective when trialled. By utilising two different methods of detecting fires, the chances of receiving an early warning are significantly higher.

6.6 As the landfill is closed over weekends, a staff member will check on the site during this time. This is to ensure that everything is in order and secured.

6.7 Leachate operations have worked well over the first 6 months of the year and there are no issues to report. The leachate ponds have been maintained at low level so that the site can deal with any heavy rain events that may occur.

7.0 ETS

7.1 The landfill has engaged the services of Tonkin and Taylor to complete the annual assessment of the volume of landfill gas that is being extracted and destroyed at the site. This work is required so that an application for a Unique Emissions Factor (UEF), as defined under the Emissions Trading Scheme (ETS), can be verified, and granted.

7.2 Previously the landfill was successful in obtaining a UEF of 0.286 for the 2024 calendar year. A UEF enables a landfill to reduce its ETS obligations and therefore costs under the scheme. The ETS default factor is 1.023 and the landfill would be required to use this factor if it hadn’t obtained a UEF. In simplistic terms the lower a UEF is, the less cost is incurred by a landfill. Landfills meet their ETS obligations by purchasing New Zealand Units (NZUs) and the lower a UEF is, the fewer NZU’s a landfill needs to purchase.

7.3 The default factor is used by landfills that are not capturing and destroying any landfill gas (or not recording and verifying what they were doing). A UEF is used in place of the default factor once the efficiency of gas capture and destruction (to whatever degree) is proven/verified at a site. Therefore, in the case of Ōmarunui our UEF of 0.286 means that our obligations under the ETS are reduced by approximately 72%. Another way of looking at it is that we are only required to surrender 28% of NZU’s that we would have had to if we didn’t have a UEF.

7.4 The landfill is currently applying for a new UEF which will apply to waste deposited at the site during the 2025 calendar year. As the UEF is applied retrospectively to waste already deposited at the site, the ETS amount charged at the gate at the time the waste enters the site is always a best estimate of what is expected to be verified/granted.

7.5 Due to legislative changes the UEF that will retrospectively apply to the 2025 calendar year is expected to be higher than the 0.286 factor achieved for the 2024 year. This will be confirmed in March 2026. A higher factor had been allowed for when setting landfill budgets.

8.0 Landfill Gas

8.1 LMS (owners of the gas to energy plant) has a new Caterpillar engine in the energy plant. The new engine is fully operational and able to produce at least 20% more electricity than the old engine when the necessary level of landfill gas is available.

8.2 The combination of the new engine and second flare (installed earlier in the year) will help the landfill destroy a greater volume of gas which will help control odour at the site and reduce Emission Trading Scheme compliance costs.

8.3 Several new gas wells are programmed to be drilled and connected to the gas capture system later in the year. This will help increase gas flow to the gas to energy plant and/or flare. This will in turn help the landfill achieve a better Unique Emissions Factor and therefore reduce the cost of ETS compliance. Gas wells will also be installed in Area B just as soon as there is enough waste placed in that new part of the landfill to draw off.

9.0 Wairoa District Council Waste

9.1 An opportunity to assist the Wairoa District Council (WDC) with the disposal of their solid waste has arisen. Due to recent flood events, and the limited remaining capacity in the Wairoa landfill, the Ōmarunui Landfill has agreed to accept their solid waste on a temporary basis of up to three years at a rate of up to 4,000 tonnes per annum.

9.2 This arrangement will provide the WDC enough time to decide how they are going to manage their waste in the future and implement those changes.

9.3 A date for waste to come to Ōmarunui is still to be confirmed as the WDC fill the remaining available space at their own landfill.

10.0 Health and Safety

10.1 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”.

10.2 Additional Health & Safety information relating to the landfill’s performance is the subject of a separate report to this committee.

11.0 Skins/Pelts/Fleshings/Tannery Waste

11.1 In recent months the volume of skins/pelts/fleshings/tannery waste received at the landfill has settled down to a manageable level. The landfill has set daily load limits on the acceptance of this type of waste, and waste haulers are mostly adhering to these rules.

11.2 Air quality testing is carried out annually to ensure that this waste stream is not creating any undue negative outcomes.

12.0 Waste Levy

12.1 The waste levy is currently being collected at a rate of $65 per tonne, however this will increase to $70 per tonne for the 2026/27 financial year (starting 1^st July 2026).

12.2 The Government has signalled that it expects to increase the levy by another $5 per annum as of 1^st July 2027. This would result in a levy of $75 per tonne from that time.

13.0 Financial Summary

13.1 Attached to this report is the financial summary (Attachment 1) for the 6 month period ending 31^st December 2025.

Attachments:

1 ⇩	Omarunui Landfill Joint Committee Financial Summary	CG-17-20-00058
2 ⇩	Ōmarunui Landfill Aerial Map	CG-17-20-00048

Te Rā Hui: Meeting date:	Friday, 27 February 2026
Te Wā: Time:	1:00 PM
Te Wāhi: Venue:	Council Chamber Ground Floor Civic Administration Building Lyndon Road East Hastings
Te Hoapā: Contact:	Democracy and Governance Services P: 06 871 5000 \| E: democracy@hdc.govt.nz
Te Āpiha Matua: Responsible Officer:	Interim Group Manager: Waste, Parks & Cemeteries - Martin Jarvis

Nga mema o te Komiti Committee Members:	Heamana Chair: TBC Deputy Chair: TBC Councillors Kevin Watkins, Nicholas Ratcliffe, Hana Montaperto-Hendry and Alwyn Corban (HDC) Councillors Whare Isaac-Sharland and Craig Morley (NCC) Councillor Siiam Daniel (HDC Alternate) Councillor Greg Mawson (NCC Alternate) Ngāti Pārau Appointee: - Alice Hughes Ngāti Pārau Alternate: - Darren Tareha
Tokamatua: Quorum:	4 - including at least one elected member from each Council
Apiha Matua Officer Responsible:	Interim Group Manager: Waste, Parks & Cemeteries - Martin Jarvis
Te Rōpū Manapori me te Kāwanatanga Democracy & Governance Services	Christine Hilton (Ext 5633)

1 ⇩	HDC Health, Safety and Wellbeing Policy (Signed) - 20 March 2025	HR-03-02-2-25-51
2 ⇩	Health, Safety and Wellbeing Snapshot report - Ōmarunui Landfill - 1 April to 31 December 2025	HR-03-8-2-26-249

1.0	Apologies – Ngā Whakapāhatanga At the close of the agenda no apologies had been received. At the close of the agenda no requests for leave of absence had been received.
2.0	Conflict of Interest – He Ngākau Kōnatunatu 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 Manager: Democracy and Governance (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.
3.0	Confirmation of Minutes – Te Whakamana i Ngā Miniti This is the first meeting of the new triennium and so there are no previous minutes to be confirmed.
4.0	Election of Chair and Deputy Chair	9
5.0	Heads of Agreement	11
6.0	Health, Safety & Wellbeing Update	19
7.0	Ōmarunui Joint Landfill Annual Report for the Year Ending 30 June 2025	25
8.0	Six Month Activity Report	53
9.0	Minor Items – Ngā Take Iti
10.0	Urgent Items – Ngā Take Whakahihiri
11.0	Recommendation to Exclude the Public from Item 12	63
12.0	Review of Disposal Fees

Item 5 Heads of Agreement
Solid Waste - Omarunui ~ Revised Final Heads of Agreement Ōmarunui Joint Refuse Landfill Committee 4 October 2010	Attachment 1

Item 6 Health, Safety & Wellbeing Update
HDC Health, Safety and Wellbeing Policy (Signed) - 20 March 2025	Attachment 1

Item 6 Health, Safety & Wellbeing Update
Health, Safety and Wellbeing Snapshot report - Ōmarunui Landfill - 1 April to 31 December 2025	Attachment 2

Item 7 Ōmarunui Joint Landfill Annual Report for the Year Ending 30 June 2025
Ōmarunui Refuse Landfill Joint Committee Annual Report 30th June 2025	Attachment 1

Item 8 Six Month Activity Report
Omarunui Landfill Joint Committee Financial Summary	Attachment 1

Item 8 Six Month Activity Report
Ōmarunui Landfill Aerial Map	Attachment 2