The Nelson Regional Sewerage
Business Unit (NRSBU) (NDOCS-1974015928-495) is a joint committee of Nelson City and Tasman
District Councils. Operation of the NRSBU is governed by a Board, as
established by a Memorandum of Understanding (NDOCS-1974015928-495).
Areas of
Responsibility:
·
To manage and operate
the wastewater treatment facilities at Bells Island and the associated
reticulation network efficiently and in accordance with resource consent
conditions to meet the needs of its customers.
Powers
to Decide:
·
The Councils are agreed
that the responsibility for all management and administrative matters
associated with the NRSBU operation shall be with the Board, and in particular
the Board shall without the need to seek any further authority from the
Councils:
o
Operate a bank account for the
Business Unit;
o
Comply with the Procurement Policy
of the Administering Council;
o
Enter into all contracts necessary
for the operation and management of the Business Unit in accordance with the
approved budgets and intent of the Business Plan;
o
Authorise all payments necessary
for the operation and management of the Business Unit within the approved
budgets and intent of the Business Plan;
o
Do all other things, other than
those things explicitly prohibited by this Memorandum of Understanding or
relevant statutes, that are necessary to achieve the objectives as stated in
the Strategic Plan, Asset Management Plan or Business Plan approved by the
Councils;
o
Comply with the Health and Safety
Policy and requirements of the administering Council
·
Contribute to the
sanitary services assessment process of the Councils
·
Contribute to and
comply with the waste management plans of the Councils
·
Contribute to the
development of the Councils’ Development and Financial Contribution
policies
·
Contribute to the
Councils’ Regional Policy Statement and Regional Plan Reviews
·
Develop and keep under
review an appropriate contract for the delivery of waste collection and
disposal services with each of its customers
·
Follow generally
accepted accounting practices
·
Follow good employment
practices
Powers
to Recommend to Councils:
·
Any other matters under
the areas of responsibility of the Business Unit and detailed in the Memorandum
of Understanding.
·
All recommendations to
Council will be subject to adoption of an equivalent resolution by the other
Council, unless it is a matter specific to one Council only.
Quorum:
·
The Memorandum of
Understanding governing the NRSBU allows for either six or seven members to be
appointed. The quorum at a meeting is either three (if six members are
appointed), or four (if seven members are appointed), including at least one
from each local authority.
Procedure:
·
The Standing Orders of
the Council providing administration to the committee will be applied at each
meeting.
·
The Chairperson will
not have a casting vote.
·
Copies of minutes of
meetings of the Joint Committee will be retained by each Council for record
keeping purposes.
Nelson
Regional Sewerage Business Unit Minutes - 3 May 2024
Present: Tasman
District Councillor K Maling (Chairperson), Nelson City Councillors T Skinner
(Deputy Chairperson) and K Paki Paki, Independent Member T Mehmood, Iwi
Representative A Young and Industry Representative (non-voting) P Wilson
In Attendance: Tasman District Council Group Manager Community Infrastructure
(R Kirby), Nelson City Council Acting Group Manager Infrastructure (D
Light), General Manager Regional Services (N Clarke), Team Leader Governance (R
Byrne) and Governance Adviser (A Bryce)
Apologies : Tasman
District Councillor B Dowler
1. Apologies
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Resolved RSBU/2024/004
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That the Nelson Regional Sewerage Business
Unit
1. Receives
and accepts the apology from Tasman District Councillor Barry Dowler.
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Paki Paki/Skinner Carried
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2. Confirmation of
Order of Business
There
was no change to the order of business.
3. Interests
There were no
updates to the Interests Register, and no interests with items on the agenda
were declared.
4. Public Forum
There was no
public forum.
5. Confirmation of
Minutes
5.1 1
March 2024
Document number
M20466, agenda pages 6 - 8 refer.
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Resolved RSBU/2024/005
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That the Nelson
Regional Sewerage Business Unit
1. Confirms
the minutes of the meeting of the Nelson Regional Sewerage Business Unit,
held on 1 March 2024, as a true and correct record.
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Skinner/Mehmood Carried
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6. General Managers
Update Report
Document number
R28499, agenda pages 9 - 19 refer.
Attendance:
Philip Wilson joined the meeting at 9.40a.m.
General Manager
Regional Services, Nathan Clarke and Operations Manager Regional Services, Brad
Nixon, took the report as read and provided an update around a small overflow
incident and the completion of a section of pipe upgrade under SH6. They
answered questions on budgets, a wind monitoring app that is in the final
stages, robust response plans and Nelson Pine reuse opportunities.
Accountant,
Andrew Bishop, answered questions on capital costs agreements, income through
the trade waste agreement, operational cost variables and cash flow.
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Resolved RSBU/2024/006
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That the Nelson
Regional Sewerage Business Unit
1. Receives the report General Managers Update Report (R28499) and its attachment
(1080325921-898).
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Skinner/Mehmood Carried
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7. Designation of NRSBU
Facilities
Document number
R28496, agenda pages 20 - 25 refer.
Operations
Manager Regional Services, Brad Nixon, took the report as read and answered
questions on designation requirements, iwi engagement and consultation.
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Resolved RSBU/2024/007
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That the Nelson
Regional Sewerage Business Unit
1. Receives the report Designation of NRSBU Facilities (R28496); and
2. Confirms the intent to issue Notifications of Requirement for
designation of its facilities under s168A of the Resource Management Act
1991.
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Recommendation
to Nelson City Council and Tasman District Council
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That the Nelson
City Council and the Tasman District Council Operations Committee
1. Receives the report Designation of Nelson Regional Sewerage Business
Unit Facilities (R28496); and
2. Endorses
the Nelson Regional Sewerage Business Unit to issue Notifications of
Requirement for designation of its facilities under sections 168 and 168A of
the Resource Management Act 1991; and
3. Delegates
authority for the signing of the Form 18 applications for Notification of
Requirement as required under the Resource Management Act 1991 to the General
Manager - Regional Services.
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Skinner/Paki Paki Carried
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8. Nelson Regional
Sewerage Business Unit Long Term Plan Submission Feedback Report
Document number
R28423, agenda pages 26 - 34 refer.
General Manager
Regional Services, Nathan Clarke, took the report as read and tabled additional
submissions (1080325921-914).
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Resolved RSBU/2024/008
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That the Nelson
Regional Sewerage Business Unit
1. Receives the report Nelson Regional Sewerage Business Unit Long
Term Plan Submission Feedback Report (R28423)
and its attachment (1080325921-899); and
2. Confirms
the Operational and Capital
budgets outlined in the Nelson Regional Sewerage Business Unit Activity
Management Plan 2024-2034 (1080325921-753)
and the 2024/2025 Nelson Regional
Sewerage Business Unit Business Plan (1080325921-246).
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Recommendation to
Nelson City Council and Tasman District Council
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That the Nelson
City Council and Tasman District Councils
1. Notes
that there are no changes to the 2024/2025 Nelson Regional Sewerage Business
Unit Business Plan (1080325921-246) adopted to populate the Nelson City
Council and Tasman District Council 2024 – 2025 Annual Plans; and
2. Notes
that there are no changes to the Nelson Regional Sewerage Business Unit
Activity Management Plan 2024-2034 (1080325921-753) adopted to populate the
Nelson City Council and Tasman District Council 2024 – 2034 Long Term
Plans.
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Mehmood/Skinner Carried
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Attachments
1 1080325921-914 Nelson City Council LTP
Submissions Relevant to NRSBU
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There being no
further business the meeting ended at 10.36a.m.
Confirmed as a
correct record of proceedings by resolution on (date)
Item
6: NRSBU General Manager Update Report August 2024
Nelson Regional Sewerage Business
Unit
2 August 2024
Report Title: NRSBU General Manager Update Report August 2024
Report Author: Nathan
Clarke - General Manager Regional Sewerage and Landfill
Report Authoriser: Alec
Louverdis - Deputy Chief Executive / Group Manager Infrastructure
Report Number: R28627
1.1 This report is an update by the General Manager (GM) on activities
undertaken to 30 June 2024 by the Nelson Regional Sewerage Business Unit
(NRSBU).
1.2 The report also includes a recommendation to adopt and recommend to
Nelson City Council and Tasman District Council the 2024 – 2034 Nelson
Regional Sewerage Business Unit Activity Management Plan (AMP).
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That the Nelson Regional Sewerage
Business Unit
1. Receives
the report NRSBU General Manager Update Report August 2024 (R28627) and its Attachment (1080325921-753);
and
2. Approves the final Nelson
Regional Sewerage Business Unit 2024 –
2034 Activity Management Plan (1080325921-753).
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Recommendation
to Nelson City Council and Tasman District Council
|
That the Nelson City Council and Tasman District Council
1. Adopts the final Nelson Regional Sewerage Business Unit 2024
– 2034 Activity Management Plan (1080325921-753).
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3. Background
and Discussion
3.1 The Operations
and Maintenance contract is running smoothly.
3.2 There were 4
odour notifications for the period to the end of June 2024.
3.3 Total Income to
30 June 2024 finished significantly behind budget by $1,409,514, with a total
Net Income below budget by $1,975,472
4.1 Health and Safety (H&S) for the operations contract is being
managed well, and no significant safety issues are currently outstanding, the
H&S Dashboard is now up and running and a copy is attached.
4.2 Health
and Safety Event Register:
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Classification
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Date
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Details
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Follow up actions
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Close Call (Near Miss)
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11/04/2024
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During a weather event
access to SCADA was prevented due to a limit on license availability
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Called Nelmac SCADA on
call operator who advised this has occurred in the past and if the issue
persisted, he could gain access. - escalated to NRSBU and more licenses
are likely to be assigned
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Injury
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17/04/2024
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I lifted off an old pressure pump and
then proceeded to install the bigger new pump that I didn't think was that
heavy until I lifted it onto the concrete plinth, it wasn't until I got the
pump on the plinth that I felt my back was a bit sore.
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Review of job task allocation and
planning to identify heavy lifts. Highlights the need for utilising the hiab
on site – recertification is underway.
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Incident
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16/04/2024
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Mower struck power cord
in Grass, power cord was for site portacom office that was shifted into
position two weeks ago. Power lead was plugged into portacom and run across
the adjacent container roof, to the power outlet. high winds late last week
must have knocked the excess cable off the roof of the container into the
long grass
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Electrician repaired
power cord.
Power cord secured to
prevent future recurrence.
Communicated need to
ensure electrical leads are secured in place to prevent them moving.
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Hazzard ID (Improve It)
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11/06/2024
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DAF sump protection is poor. Blows
out walkway mesh every time the sump overloads. A gentle press with your foot
can tip It into sump with potential for decent injury if walked on.
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Identified a simple off the shelf
scruffy done would fix the issue. This was promptly installed and completed
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Incident
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13/06/2024
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Songer P2 faulted and
could not be reset remotely. Electrician attended site at 8am to find the VFD
had blowen up, door and HMI of drive was hanging off and inside pumpstation
smelled of burnt electronics.
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Event has been resolved
and new VFD ordered / installed
VFD inspected by
supplier, no obvious failure cause so attributed to age
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Incident
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17/06/2024
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While pigging the Primary Clarifier
was cleaning the pig basket in the sludge tank for over 40mins and started to
get headache due to not having any odour extractor available.
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A temporary odour extraction has
been installed connecting the tank to the ATAD system - this will be
sufficient until the new tank is completed.
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4.3 Nelmac have inducted 29 new personnel to NRSBU sites during the
period to the end of June 2024.
4.4 The following training was completed during the report period:
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Month
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Training
Type/details
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No of Staff
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Apr 24
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Lab calibration
and traceability
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1
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May 24
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Safe Work at
Heights
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1
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Jun 24
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N/A
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1
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Table 1: NRSS
Operations and Maintenance Contract Training Completed
4.5 The following audit/interaction activities were completed during the
report period:
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Month
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Audits
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Prestarts
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Tailgates
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Apr 24
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0
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4
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1
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May 24
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1
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4
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0
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Jun 24
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1
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4
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1
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Table 2: Table 2:
NRSS Operations and Maintenance Contract H&S Interactions Completed
5.1 NRSBU
manages risks to ensure the performance of the Nelson Regional Sewerage Scheme
(NRSS). The following section discusses three significant risks that NRSBU is
managing.
5.2 The
Wastewater Conveyancing System
5.2.1 The regional rising main is
being duplicated and upgraded to improve maintainability and to increase
capacity from the Richmond catchment. This upgrade will increase the flow rate
from Richmond which in turn result in additional flows entering the Bell Island
WWTP.
5.2.2 In addition to the additional
flows expected from the Richmond catchment as a result of the rising main
upgrade, NRSBU has requested information regarding flow projections from NCC
and TDC for the next 20 years. This correspondence is requested annually and
recently meetings between NCC and NRSBU has suggested that the flows being
received by NRSBU during rainfall events is higher than the capacity contracted
to Nelson City Council.
5.2.3 The consequence of these issues
is a risk that the capacity of the Bell Island facility will need to be
increased. The largest constraint faced by the Bell Island treatment plant is
the discharge consent discharge capacity and there is a risk that NRSBU will
exceed the discharge capacity more frequently in future as a result of the
rising main upgrade.
5.3 Operational
Staff resilience
5.3.1 The NRSBU operations and
maintenance contractor (Nelmac) and has two site staff who are approaching or
past retirement age. These staff have provided advanced notification of their
intent to retire.
5.3.2 It is recognised that
recruitment for qualified and experienced wastewater operators is difficult
within New Zealand. There is a risk that retirement could leave NRSBU lacking
in operational capacity for a prolonged period of time.
5.3.3 NRSBU has asked Nelmac to
prepare a succession plan to reduce risk of staffing shortage and loss of NRSS
specific knowledge when these staff choose to retire.
5.4 The
electrical power supply to Bell Island remains a risk to NRSBU. The Business
Unit has installed diesel generators on Bell Island to mitigate the risk to the
continuity of service, but the consequence would be a significant monetary cost
for diesel for the duration of a major lines failure event. NRSBU is currently
working on an option to enable a secondary supply line in conjunction with
other power activities on the island, however the required additional
investment from NRSBU.
6. Operations
& Maintenance
6.1 Operational
performance of the Nelson Regional Sewerage Scheme (NRSS) continued at a high
level.
6.2 The preliminary operating
costs against the Target Outturn Cost (TOC) for the 2023/2024 year were above the
NRSBU 2023/2024 business plan forecast budget.
6.3 Graph of
progress against TOC:
Figure 1:
Expenditure against forecast - NRSS O&M Contract
6.4 Between
March to May costs incurred under the maintenance contract were higher than
forecast. This was primarily driven by increase sampling and monitoring
requirements for the start of the new biosolids application consent, increased
costs associated with poor pond health, and some unforeseen heavy maintenance
costs around the treatment plant.
6.5 Issues
experienced on the inlet milliscreen drums late last year have not recurred,
with only inspections and preventative maintenance being completed since.
6.6 The
replacement drum has been installed, with the old drum sent to the
manufacturers to enable assessment for repair suitability with the intent of
maintaining as a spare.
6.7 Odour
6.7.1 There
were four odour notifications for the period to end of June 2024.
6.7.2 All
odour notifications were reviewed as soon as possible after notification was
received.
6.7.3 In each
case the source was considered, and one odour notification was confirmed to
have come from biosolids application on Rabbit Island. The other three were
considered likely to be related to biosolids application, however, were unable
to be verified.
6.8 Wastewater
overflow
6.8.1 No
wastewater overflows occurred this period.
6.9 Beneficial
reuse of Resources
6.9.1 No application of treated
effluent to land has occurred during the period.
6.9.2 25,000m3 of treated
effluent has been processed through the ultra-filtration (UF) plant for re-use
onsite during the last 3 months.
6.9.3 No supply of UF treated
wastewater to Greenacres occurred during the period.
6.9.4 NRSBU applied 10,500 m3
of Biosolids between January and March 2024. This equates to 24 tonnes of
Nitrogen for fertiliser to the Motoroa/Rabbit Island pine forests.
7.1 Works
recently completed:
7.1.1 Inlet
works support props
7.1.2 Best
Island pond fencing
7.1.3 Pond
level and DO monitoring
7.1.4 Workshop/facilities
upgrade:
Figure 2: New workshop/facilities
building
Figure 3: New
workshop/facilities building
7.2 Regional
Rising main upgrade
7.2.1 Sections
1 to 4 Progress:
· Works on Whakatu foreshore completed, including structural lining of
pipe under SH6
· Pipe installation from SH6 to Saxton Creek completed, including
connection to Alliance.
· Works have commenced on the pipeline installation on Beach Rd
· The liner to join the Beach Rd & Whakatu foreshore works is
programmed for installation in late August to early September
7.2.2 Sections
5 to 7 Progress:
· Works are now fully completed, including within the Heslops site on
Kotua Place.
7.2.3 Heslops were highly
complementary of the works completed by NRSBU contractors through their site.
Both Chings (Section 5) and Hunter Civil (Section 4) have ensured minimised
disruption and clear communications with Heslops during their time there.
7.2.4 NRSBU has gone to Registration
of Interest respondents with a Request for Tender (RfT) for a contractor to
complete the duplicated rising main connections at Richmond and Saxton pump
stations.
7.2.5 To enable a shorter works
delivery programme NRSBU will direct procure long lead time items such as
valves, actuators and flow meters.
7.3 Other
Works Underway
7.3.1 Moturoa/Rabbit Island biosolids
storage tanks odour extraction and biofilter design.
7.3.2 Bell Island biosolids tank
renewal.
Figure 4: Biosolids
tank renewal works underway
7.3.3 Bell
Island sludge tank construction
Figure 5: Completed
foundation earthworks for the new sludge storage tank
7.3.4 Bell Island aeration system
renewal design.
7.3.5 Bell Island secondary treatment
system expansion design.
7.3.6 Storm pump, valving and pipework
renewal at Airport pumpstation.
7.3.7 Storm pump and non-return valve
renewal at Richmond pumpstation.
7.3.8 Bell Island chamber cover
renewals.
7.3.9 Wakatu pump station overflow
discharge pipework installation.
7.3.10 Wakatu pump station upgrade and overflow
screen installation design.
7.3.11 Bell Island inlet works isolation valve
installation.
7.3.12 Monaco to Bell Island concrete rising main
condition assessment and fittings renewal.
7.3.13 Bell Island concrete gravity pipe renewal
investigations.
7.3.14 Songer pump station riser renewals.
7.3.15 Moturoa/Rabbit Island biosolids storage
tank level sensors and valve actuation installation.
7.3.16 Asset
information upgrade.
8.1 These finances
are not end of year finances, rather they reflect operational finances
excluding end of year wash-up, valuation changes, etc.
8.2 The finalised
end of year finance report will be submitted for approval in September 2024.
8.3 The total income
for the year ending 30 June 2024 is $1,975,472 behind budget.
Figure 6: NRSBU
Financial Data to 30 June 2024
8.4 Income
8.4.1 Preliminary fixed recoveries
year to date under budget by $699,000.
8.4.2 The variable income year to date
is under budget by $737,032.
8.5 Expenditure
8.5.1 Operating and Maintenance
expenses are over budget by$427,552.
8.5.2 Interest
was $307,000 over budget due to higher interest rates.
8.6 This under
recovery in fixed contributions results from changes to interest rates used in
the charging model versus the budget and the timing of setting these interest
rates. The budget process used means there is a significant time difference
during which changes to interest rates can occur.
8.7 The under
recovery in variable contributions relates to the 2023/24 financial year being
very dry, and therefore the flow charges to the customers were significantly
below budgeted inflow. (flows in 2023/24 were 5.441 million m3
compared to 7.213 million m3 in 2022/23)
8.8 Maintenance costs are above budget due a range of activities
including heavy maintenance activities, purchase of pond emergency response
chemicals and establishment costs for the new biosolids consent.
8.9 Finalised annual financial accounts will be presented in the
September NRSBU meeting, including asset revaluations.
9. Activity
Management Plan
9.1 At
the 3 May 2024 NRSBU meeting the Joint Committee resolved to confirm the
budgets included in the Nelson Regional Sewerage Business Unit AMP, along with
recommending to NCC and TDC to note that there were no changes to the AMP from
the versions adopted to populate the NCC and TDC AMPs following consultation on
the Long Term Plan.
9.2 A
further recommendation is required for the two councils to adopt the Nelson
Regional Sewerage Business Unit AMP as the final version. The recommendation is
included in this report.
10.1 Business
Unit operation has been good from an environmental perspective with high levels
of compliance, no wastewater overflows and delivery a large number of capital
projects.
10.2 The
exception to the good performance is the fixed and variable incomes being
significantly lower than budgeted. This is leading to a significant shortfall
in revenue. The variable income is lower than budget due to the dry summer
resulting in lower than anticipated inflows, which will correct at year end
with a wash-up charge to the four major customers.
10.3 The
result of the shortfall is a lower than expected surplus. This trend was
identified in the first quarter and has continued throughout the year.
10.4 For
the scheme owners the lower variable revenue means that they as customers have
been making savings, and this will partly compensate for the lower annual
surplus projected.
11. Important
considerations for decision making
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11.1 Fit
with Purpose of Local Government
The NRSBU is a joint committee
constituted pursuant to the provisions of Schedule 7 to the Local Government
Act 2002 and contributes to the four Local Government well-beings of social,
economic, environmental, and cultural.
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11.2 Consistency
with Community Outcomes and Council Policy
Reporting on management and
operations of Council infrastructure is a common practice, and helps provide
certainty for service delivery to meet the goals of Long Term Plans.
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11.3 Risk
This report allows the NRSBU
board to monitor and review the ongoing operations of the NRSBU. The report
considers risks from health and safety and compliance, and with resource
consents.
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11.4 Financial
impact
This report summarises financial
performance against budgets, and has a minor impact on costs associated with
reducing operational and performance risk from foreseeable changes to the
operations contractor’s labour force.
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11.5 Degree
of significance and level of engagement
The NRSBU is a Joint Committee of
the two Councils and its activities are included in the Long-term Plans and
Annual Plans of each Council. Consultation is undertaken by both
Councils in the preparation and adoption of these plans
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11.6 Climate
Impact
The NRSBU is a Joint Committee of
the two Councils and its activities are included in the Long-term Plans and
Annual Plans of each Council. Consultation is undertaken by both
Councils in the preparation and adoption of these plans. Climate mitigation
and adaptation actions are included in the capital works programme in the
NRSBU Business Plan
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11.7 Inclusion
of Māori in the decision making process
No engagement with Māori has
been undertaken in preparing this report. No engagement with Māori has
been undertaken in preparing this report but iwi have representation on the
Board.
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11.8 Delegations
The Councils are agreed that the
responsibility for all management and administrative matters associated with
the NRSBU operation shall be with the Board, and in particular the Board
shall without the need to seek any further authority from the Councils:
Enter into all contract necessary
for the operations and management of the Business Unit in accordance with
approved Budgets and the intent of the Business Plan.
Authorise all payments necessary
for the operations and management of the business unit within the approve
budgets and the intent of the Business Plan
Do all other things, other than
those things explicitly prohibited by this MOU or relevant statutes, that are
necessary to achieve the objectives as stated in the strategic Plan, Asset
Management Plan or Business Plan approved by the councils.
Powers to Recommend to Councils:
Any other matters under the areas
of responsibility of the Business Unit and detailed in the Memorandum of
Understanding
All
recommendations to Council will be subject to adoption of an equivalent
resolution by the other Council, unless it is a matter specific to one
Council only.
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Attachments
Attachment 1: 1080325921-753
- NRSBU AMP 2024-34 - Final
