Agenda of Nelson Regional Sewerage Business Unit

Nelson Regional Sewerage Business Unit Delegations 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:

Operate a bank account for the Business Unit;

Comply with the Procurement Policy of the Administering Council;

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;

Authorise all payments necessary for the operation and management of the Business Unit within the approved budgets and intent of the Business Plan;

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;

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.

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Minutes of a meeting of the Nelson Regional Sewerage Business Unit held in the Council Chamber, Floor 2A, Civic House, 110 Trafalgar Street, Nelson on 14 May 2025, commencing at 9:30 AM.

Present: Tasman District Councillor K Maling (Chairperson), Tasman District Councillor B Dowler, Nelson City Councillor T Skinner (Deputy Chairperson), Nelson City Councillor K Paki Paki, Independent Member T Mehmood, Industry Representative (non-voting) P Wilson and Iwi Representative A Young

In Attendance: Deputy Chief Executive/Group Manager Infrastructure (A Louverdis), General Manager Regional Services (N Clarke), Governance Adviser (A Bryce) and Assistant Governance Adviser (M Taylor)

Apologies: Nil

1 Apologies

There were no apologies received.

2 Confirmation Of Order Of Business

There were no changes to the order of business.

3 Interests

There were no updates to the Interests Register, no interests with items on the agenda were declared.

4 Public Forum

There was no public forum.

5 Confirmation Of Minutes

5.1 12 February 2025 - Minutes

The minutes were amended to include Ms Young in attendance. Resolved RSBU/2025/6

That the Nelson Regional Sewerage Business Unit

1. Confirms the amended minutes of the meeting of the Nelson Regional Sewerage Business Unit, held on 12 February 2025, as a true and correct record.

TDC Cr Dowler/Aneika Young Carried

6 Reports

6.1 NRSBU General Manager Update Report May 2025

General Manager Regional Services, Nathan Clarke and Operations Manager Regional Services, Brad Nixon presented the report and answered questions on NRSBU's accountability of breaches, the role of Council vs Taumata Arowai's role, balance of cost vs best practice and iwi Māori consultation on developing the standards around a regional wastewater philosophy.

In reply to a question Deputy Chief Executive/Group Manager Infrastructure, Alec Louverdis noted that all new Nelson pumpstations require on site storage.

The Chair proposed that a letter be sent to the relevant Minister relating to the proposed standards consultation.

Resolved RSBU/2025/7

That the Nelson Regional Sewerage Business Unit

1. Receives the NRSBU General Manager Update Report May 2025; and

2. Approves retrospectively the submission made to Taumata Arowai on behalf of NRSBU regarding consultation on proposed wastewater environmental performance standards.

Cr Skinner/TDC Cr Dowler Carried

There being no further business the meeting ended at 10:24 am.

Confirmed as a correct record of proceedings by resolution on (confirmation date). Insert Resolution here (remove bold please):

Nelson Regional Sewerage Business Unit - 14 May 2025 2 of 2

Nelson Regional Sewerage

Business Unit 10 September 2025

Report Title: R25-420 General Managers Update Report Report Author: Nathan Clarke (General Manager Regional

Services)

Report Authoriser: Alec Louverdis (Deputy Chief Executive / Group

Manager Infrastructure)

1 Purpose of Report

1.1 To update the Nelson Regional Sewerage Business Unit (NRSBU) Joint Committee on activities undertaken to 30 June 2025 by the NRSBU.

2 Recommendation

That the Nelson Regional Sewerage Business Unit

1. Receives the Report R25-420 General Managers Update Report August 2025.

3 Health and Safety

3.1 H&S for the operations contract is being managed well, and no significant safety issues are currently outstanding.

3.2 No significant incidents occurred during this period, the table below outlines incidents:

Event Type

Date

Event Details

Summary Findings

Injury/Illness (Accident)

19/05/2025

Cut finger on lip of unit while cleaning out auger.

Minor cut to finger, cleaned and dressing applied.

Gloves worn, but difficult to balance cut resistance with biological protection.

Close Call (Near Miss)

11/06/2025

The DN 600 air bag bung that was the primary isolation device for the rising main burst.

Secondary isolation in place prevented any leak. Cause of bag failure unable to be identified.

Bag replaced, and additional equipment to prevent over pressuring added to system.

Injury/Illness (Accident)

17/06/2025

Small stone flicked up under visor broke skin on chin while weed eating.

No further action

Injury/Illness (Accident)

28/06/2025

Thumb caught in door frame; injured person closed door while their hand was on frame.

Leaning over some flooding to look through door.

Cleaned wound, and sterilized/dressed.

4 Operations and maintenance

4.1 Operational performance of the Nelson Regional Sewerage Scheme (NRSS) continues at a high level.

4.2 The dashboard of compliance data is shown below, with no non- compliance issues occurring during the year to date.

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4.6.4 During the June extreme rainfall event that resulted in the Civil Defence State of Emergency for the region, the duplicated rising main was in service, and the system pumped around 820 litres per second during the peak of the event (nearly double the previous capacity). This flowrate is the maximum flow capacity for the upgraded wastewater pipework, and this level of flow was only expected to be reached around 2050.

4.6.5 Despite this significantly higher flowrate being available there was a short period where the NRSBU operations contractor needed to reset controller setpoints in the pumpstation electrical controls, and this short reset caused an overflow.

4.6.6 The number of wastewater overflows that occurred during the quarter is the most that have occurred in any quarter for many years.

4.6.7 The fact that NRSBU managed to convey around 820 litres a second from Beach Rd pumpstation and the maximum daily flow ever record for the Bell Island facility shows that despite the overflows that NRSBU is in a better position with wastewater conveyance capacity than we have been for many years.

4.7 Biosolids Spill

4.7.1 A discharge occurred during the end of June in the biosolids pipeline. The discharge resulted from a failed connection joint in the biosolids pipeline. The issue was repaired the issue during the state of emergency event at the end of June.

4.7.2 During the investigation NRSBU took the opportunity to inspect the pipe upstream and downstream of the failure and identified several connection joints that we also corroded. These joints were removed and replaced during the repair.

4.7.3 The Biosolids pipe has had two failures during the last year and is close to the end of its life. NRSBUs renewal program includes the replacement of approximately 20% of the pipe length during the 2025/26 financial year, which should replace the worst condition sections, and further renewals are scheduled for future years.

4.8 Beneficial reuse of resources:

4.8.1 No treated effluent was applied to land during the report period. A total of 46,300m3 was applied during the irrigation season.

4.8.2 11,660m3 of treated effluent has been processed through the

ultra-filtration (UF) plant for re-use onsite during the report period.

4.8.3 No UF treated water was provided to Green Acres Golf Course during the report period.

4.8.4 NRSBU applied 7,926m3 of Biosolids between April and June 2025. This equates to 17.4 tonnes of Nitrogen for fertiliser to the Moturoa/Rabbit Island pine forests.

5 Compliance with Trade Waste Agreements

5.1 NRSBU provides services to its customers under Trade Waste Agreements (TWAs).

5.2 The TWAs confirm the flows and loads NRSBU is contracted to convey and treat for each customer.

5.3 As part of the new network reporting requirements implemented by Taumata Arowai, NRSBU is required to report annually on compliance with TWAs along with actions taken in response to breaches.

5.4 The table below outlines the contracted flow and load breaches for the 2024/25 financial year:

Contracted Parameter Number of breaches
Average daily volume	4
Peak ½ hour flow	10
BOD (Biochemical Oxygen Demand)	1
COD (Chemical Oxygen Demand)	1
SS (Suspended Solids)	7
TN (Total Nitrogen)	0
TP (Total Phosphorus)	0

5.5 There were 16 additional noncompliance events during the period.

5.6 Two of these events, where the customers flow exceeded the contracted capacity to the pumpstations, resulted in overflows from the system.

5.7 Both these exceedances occurred during extreme weather events.

5.8 These capacity issues are being discussed with the customers, and consideration is being given to what future demand should be accommodated within the wastewater network. No penalties are proposed at this time, although moving forward the NRSBU will recover costs associated with overflows due to contracted capacity breaches from the customer that caused the breach.

6 Projects

6.1 General projects underway at present include:

6.1.1 Moturoa/Rabbit Island biosolids discharge consent finalisation (awaiting TDC action of minor amendments).

6.1.2 Condition assessment of the concrete rising main between Monaco and Bell Island.

6.1.3 Pump replacement at Beach Rd and Wakatu pump stations.

6.1.4 Pump and non-return valve replacement at Airport pump station.

6.1.5 Emission management plan development.

6.1.6 Biosolids application facility tank odour extraction & treatment, flow actuation.

6.1.7 Update Moturoa/Rabbit Island biosolids application consent to better manage stormwater discharge from the facility.

6.2 Bell Island projects currently underway include:

6.2.1 Installation of isolation valves to rising mains at the treatment plant inlet structure.

6.2.2 Biosolids tank renewal.

6.2.3 Biosolids pipe renewal

6.3 Secondary treatment system upgrade concept design works – this is completed, with refinement of the concept to ensure ease of any future expansions. Progression to detailed design will be delayed awaiting the outcomes from the Taumata Arowai wastewater standards.

6.4 Bell Island High Flow distribution design – work has commenced on this design, however the scope of this work has broadened slightly to consider integration of the project with the renewals required on the Bell Island gravity pipelines, to check if cost savings are possible.

6.5 NRSS Rising Main Duplication:

6.5.1 The duplicate rising main from Beach Rd to Martins Point was commissioned during the report period, following connection works at the Beach Rd pumpstation. This has significantly increased the capacity of the Regional Rising main infrastructure.

6.5.2 The only work still needed is the resurfacing of the pumpstations sites.

6.6 Bell Island site designation:

6.6.1 Approval of the revised Designation conditions for the Bell Island site are the subject of a separate report on this meeting agenda.

7 Risks

7.1 NTRLBU has an ongoing process on managing risks and criticality at various levels within the Business Unit process,

7.2 Site Power constraints

7.2.1 NRSBU has a programme of works to increase the treatment capacity at the Bell Island facility, and this programme will result in additional electricity supply capacity being required at the facility.

7.2.2 The Bell Island facility is located at the end of a power supply system with only one supply line. This supply line passes under the Waimea estuary between Best Island and Bell Island. This supply line is approximately 45 years old, has a limited capacity and its condition is unknown.

7.2.3 There is a risk to both NRSBU and the power supply authority that this supply system could fail and that NRSBU could therefore have no power for a significant duration, while repairs are implemented by the power supply authority.

7.2.4 NRSBU has previously identified power supply issues as a risk to the business unit, and in 2022 NRSBU began the installation of emergency generators to allow the facility to continue to operate during an emergency event.

7.2.5 This work was undertaken to manage emergencies power failure. It was not intended to replace good asset and risk management practices.

7.2.6 NRSBU believe that a proactive approach should be taken to managing this known risk and has sought to liaise with the power supply authority firstly to increase the power supply available at the Bell Island facility, and secondly to identify options for mitigating this power failure risk.

7.2.7 Currently NRSBU has been unable to get effective engagement with the power supply authority.

7.2.8 Currently power supply failure remains a risk to NRSBU, and this risk could have material financial and environmental impacts if failure of the power supply were to occur.

7.3 Bell Island causeway access:

7.3.1 The only vehicle access to the Bell Island WWTP is over the causeway from Best Island to Bell Island. This access way is tidal and is inundated during any tide height over 3.5m.

7.3.2 The causeway was installed in 1980 when the treatment plant was constructed and has performed well over the 45 year the facility has been operating, and as part of its asset management processes, NRSBU has investigated the condition of the causeway and have undertaken maintenance to ensure that the facility remains serviceable.

7.3.3 As part of the investigation NRSBU sought expert review of the load bearing capacity of the box culvert that forms the centre of the causeway.

7.3.4 The initial engineering review reported a load capacity that was significantly lower than NRSBU was expecting, (and not consistent with historic uses).

7.3.5 Due to the concerns this review raised NRSBU implemented restrictions on the causeway to ensure that the structure was not overloaded.

7.3.6 NRSBU then sought alternative advice to corroborate the initial assessment, and this second loading review reported higher capacity than the initial assessment.

7.3.7 NRSBU is therefore cautiously optimistic that the causeway is appropriately rate for the vehicles that access the facility, however there is a risk that this structure will need urgent temporary remedial strengthening to allow appropriate traffic to access Bell Island.

7.3.8 If remedial strengthening is required, then it is anticipated that the culvert structure will need to be completely replaced in the short to medium term.

7.4 Bell Island discharge capacity:

7.4.1 The Bell Island discharge consent allows for the treatment plant to discharge for 3 hours after high tide, at an average daily limit of 20,000m3, or to a maximum daily limit of 25,000m3.

7.4.2 Since the current consent was issued the Bell Island treatment plant has exceeded the discharge limits on five occasions to mitigate or avoid uncontrolled overflows from the ponds.

quarter and resulted from increased rainfall within the Nelson Tasman region.

8.1.3 Other recoveries income is under budget by $100,725.

8.2 Expenditure:

8.2.1 Total Operating and Maintenance expenses ended the year over budget by $264,925, which was a deterioration from previous the previous quarter. This change resulted from repairs and maintenance to the biosolids pipeline, and end of year adjustments associated with the asset valuation which required some recoding of repair costs that had been incorrectly capitalised.

8.2.2 Maintenance costs ended the year above budget due to a range of activities including heavy maintenance activities, repair of biosolids pipes and purchase of pond emergency response chemicals during the first quarter.

8.2.3 Financial and depreciation expenses ended the year above budget by $235,096 due to higher depreciation than budgeted.

8.3 Overall Finances

8.3.1 NRSBU had surplus of $2.2 million which was lower than the budget surplus.

8.3.2 The variable contributions were close to budget despite the first quarter result being behind budget. Overall, the variable income was within 2% of budget.

9 Conclusion

9.1 The NRSBU is operating well, with Operations and Health and Safety being managed to an appropriate level.

9.2 The wastewater treatment performance was good during the quarter, and the facility received the highest flows ever received.

9.3 The treatment plant overflowed because of the extreme flows, but no significant issues occurred because of these events.

9.4 Overall, the facility showed its robustness and ability to cope with extreme events, and despite the magnitude of the events very few overflows occurred within the reticulation network and very few issues were experienced at the treatment plant.

Attachments

Nil

Nelson Regional Sewerage

Business Unit 10 September 2025

Report Title: R25-422 Annual Report Summary - 2024/25 Report Author: Nathan Clarke (General Manager Regional

Services)

Report Authoriser: Alec Louverdis (Deputy Chief Executive / Group

Manager Infrastructure)

1 Purpose

1.1 To present the Nelson Regional Sewerage Business Unit (NRSBU) Annual Report for the 2024/25 financial year.

2 Recommendation

That the Nelson Regional Sewerage Business Unit

1. Approves the Nelson Regional Sewerage Business Unit Annual Report 2024/25 and Nelson Regional Sewerage Business Unit Financial Statements 2024/25 for presentation to Nelson City Council and Tasman District Council with delegation of all minor amendments to the Nelson Regional Sewerage Business Unit Chairperson and General Manager.

Recommendation to Nelson City and Tasman District Councils

That the Nelson City and Tasman District Councils

1. Receives the Nelson Regional Sewerage Business Unit Annual Report 2024/25 and Nelson Regional Sewerage Business Unit Financial Statements 2024/25.

3 Background

3.1 The annual report outlines what has been achieved by the NRSBU in the 2024/25 financial year and its level of performance against Key Performance Indicators.

3.2 The full annual report is attached to this summary report. A brief discussion is included in this report for information.

4 Discussion

4.1 The NRSBU had a successful year, with treatment quality from the treatment plant meeting all required quality standards.

4.2 The net income was below budget for the year.

4.3 There were 6 overflows, and 2 leaks from conveyance systems during the year

4.3.1 2 of the overflows related to equipment failure, while the remainder were a result of contracted and pump capacity exceedances due to high inflows.

4.3.2 The leaks were from the biosolids pipeline, one pipe failure near to the Best – Bell causeway, and a fitting failure between Bell and Moturoa/Rabbit Island.

4.4 The regional rising main duplication project was substantially completed during the year, with full capacity being brought online in late June – just ahead of the first storm event. This upgrade significantly improved the NRSS capacity from Richmond.

4.5 Health and Safety

4.5.1 The operation and maintenance contractor maintained a high level of health and safety vigilance.

4.5.2 A number of safety system improvements occurred during the year following hazard identification notifications and near miss incidents.

4.5.3 There were no lost time injuries during the year.

4.6 Capital Projects

4.6.1 Capital expenditure for the year totalled $9,572,919 and included:

· Completion of a replacement sludge storage tank.

· Commencement of refurbishment of the biosolids storage tank.

· Completion of the new workshop/facilities building.

· Songer pump station riser replacement.

· Installation of isolation valve to rising mains at the Bell Island inlet works.

· Replacement of one of the screen drums at the Bell Island inlet works.

· Design of high inflow distribution system at Bell Island.

· Commencement of resource consent applications for Bell and Best Island irrigation and sludge application.

· Design of the Airport PS storm pump upgrade, including procurement of long lead time items.

· Procurement of land adjacent to Saxton PS for wastewater storage facility.

· Design of control and odour treatment upgrades at the biosolids facility on Moturoa/Rabbit Island.

· The completion of the regional rising main upgrade.

4.7 Environmental Performance

4.7.1 The effluent discharge quality has met the consent conditions for the year.

4.7.2 The sludge treated at Bell Island consistently met the requirements for A Grade biosolids.

4.7.3 Odour generation from the WWTP has generally been less than minor, with no notifications received that were deemed to exceed consent parameters. Feedback from Best Island residents confirmed significant improvements in odour.

4.7.4 Odour patrols carried out by an independent contractor have demonstrated that the residual odours at the treatment plant have been significantly reduced, with remaining occasional odours generally related to pond health, rather than other processes.

4.7.5 There were several odour reports received relating to biosolids application. An independent odour auditor was engaged to verify some of these reports. As a result of four confirmed odour reports the biosolids application was relocated to mitigate odour generation.

5 Performance Measured Against Business Objectives and Performance Measures

5.1 The annual report includes a review of performance against the objectives described in the NRSBU Business Plan 2024/25.

5.2 Performance measure targets and dates are set annually in the Business Plan, along with performance measures for projects identified in the Activity Management Plan.

5.3 Performance is reported to the Joint Committee and to the shareholding councils annually.

6 Key Successes

6.1 The duplicate rising main project was substantially completed in 2024/25, with full capacity coming online in June 2025. This project proved its worth during the June storm events, conveying over 800L/s away from the Richmond pump station (previous capacity 420L/s).

6.2 The sludge storage tank replacement was completed and brought online, with the old storage tank removed.

6.3 The new workshop and amenities building was completed.

1. PURPOSE

This report is to provide a summary of the annual performance of the Nelson Regional Sewerage Business Unit (NRSBU) for the 2024/25 financial year.

2. MEMORANDUM OF UNDERSTANDING REQUIREMENTS

The Memorandum of Understanding states that the NRSBU Board shall prepare an Annual Report at the end of each financial year which shall include reporting against the performance targets and financial forecasts in the approved Business Plan.

The annual accounts and financial statements, included in the Annual Report, shall fairly show the operating and financial position of the NRSBU for the financial year, including a statement of financial performance, a statement of financial position, a statement of cash flows, and all information necessary to enable an informed assessment of the operation of the Business Unit. The financial statements must be prepared in accordance with generally accepted accounting practice.

The Annual Report and Accounts will be presented to councils by 30 September in each year.

3. INTRODUCTION

This Annual Report for the 2024/25 financial year sets out the performance of the business unit. Performance measures are assessed against targets set out in the 2024/25 Business Plan.

The NRSBU achieved a surplus of $2,198,905 compared to a budget surplus of $3,979,879. The principal driver for the variation was the significant change in fixed income, and the increases in O&M costs, biosolids disposal costs and depreciation.

Odour patrols carried out by an independent contractor have demonstrated that the residual odours at the treatment plant continue to be minimal.

The effluent discharge quality has met the consent conditions for the year.

The sludge treated at Bell Island consistently met the requirements for A Grade biosolids.

The operation and maintenance contractor maintained a high level of Health and Safety vigilance. There were no lost time injuries this year.

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4. MISSION STATEMENT

The NRSBU’s mission statement is:

Resilient, reliable, and effective infrastructure that supports and protects our community and environment.

Area	Goal
Our approach	Implement and operate infrastructure considering the needs of our community. Our priorities for this are protection of public health, the environment, and cultural values.
Our Vision/Ambition/Aspiration	We will work towards the beneficial reuse of resources.
Our conduct	We will undertake our activities transparently, fairly, respectfully, in a timely manner and we will provide regional infrastructure leadership.

5. Performance against Business Plan Strategic Goals

The strategic goals of the NRSBU set the basis for performance measurement and long-term strategies. These strategies are the outlined performance targets in the 2024/25 Business plan.

The following tables outline the performance objectives, key performance measures and what was achieved:

Strategic Goal	Objective (This is what it looks like)	Level of Service (This is how we do it)	Performance
We will implement and operate infrastructure considering the needs of our community. Our priorities for this are protection of public health, the environment and cultural values.	Containment and conveyance that is resilient and minimises adverse impacts on the health of the environment and community	We have sufficient capacity in our network to cope with peak flows	Partially achieved NRSBU has insufficient capacity to accommodate the flows from TDC and NCC networks. Despite having agreed contracted flows from our customers, NRSBU received flows in excess of the contract from both Councils, which resulted in overflows during the year. The Regional Rising main duplication upgrade was completed late in the report period.
		We are resilient to mechanical and electrical failures and natural hazards	Partially achieved (electrical resilience) New generators are installed and are integrated into the regional pumpstations, however at Beach Rd, Saxton and Airport pumpstations the existing hardware requires renewal to accommodate the full generator output and run storm pumps at full output.
			Achieved (mechanical resilience)

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Strategic Goal	Objective (This is what it looks like)	Level of Service (This is how we do it)	Performance
		We can readily maintain the network	Partially achieved The completion of the rising main duplication project allows the removal from service of rising mains between Beach Rd and Saxton PS and also allows Saxton PS to be isolated and dry weather operation to be maintained. The next stage of works involves alternate network flow paths for Songer and Airport PSs
	Resilient wastewater treatment that minimises the impact on the environment and community	The treatment plant can reliably accept (N+1 for critical assets) all peak flows from the network	Not achieved Capacity insufficient with inlet screens and secondary clarifier capacity. This has been exacerbated since the pipework upgrades were completed. Upgrades are planned and included in the Activity Management Plan (AMP) to resolve this issue.
		The treatment plant can fully treat all dry weather flows	Partially achieved All dry weather flows can be treated through the inlet screens, grit removal, primary clarifier and ponds, but limited capacity in the secondary treatment system means diurnal peaks partially bypass secondary treatment. Upgrades included in the AMP resolve this.
		The treatment plant does not create odour issues for the community	Achieved The major odour upgrades are completed with the ATAD odour upgrade finished.

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Strategic Goal	Objective (This is what it looks like)	Level of Service (This is how we do it)	Performance
		Effluent Quality meets or exceeds required discharge requirements	Achieved
	Long term vision that considers the future needs of the community	Our ongoing business is safeguarded through engagement with council planning processes	Achieved
		We have long term plans for our activities and their impacts	Achieved A Draft Master Plan 2024- 2075 has been issued for consultation to outline the long term future for the NRSBU assets.
		Have systems in place for the ongoing monitoring and reporting of emissions	Achieved Further development is in progress, and the emission reduction plan preparation has been commenced.
	Alternative methods of biosolids disposal that protect public health and the environment and are sensitive to cultural values	Have a backstop for issues with biosolids disposal	Not achieved. No backstop is currently available for biosolids disposal.
We will work towards the beneficial reuse of resources	Use of ongoing improvement processes to identify, implement and operate feasible biosolids reuse	Treatment to maintain 100% reuse of biosolids	Achieved
		Increase reuse value	Not achieved No work has been undertaken this year to improve reuse value due to staff capacity limitations.
		Maintain 100% diversion of biosolids from disposal to landfill	Achieved
	Identified implement and operate feasible systems and infrastructure for the reuse of wastewater	We minimise the amount of effluent we discharge to water	Achieved Irrigation of treated wastewater to Bell Island was undertaken during appropriate conditions, along with supply of ultra-filtered wastewater to Greenacres for irrigation. A water reuse plan is being drafted and water reuse actions are included in the NRSBU Activity Management Plan 2024-2033

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6. BUSINESS OBJECTIVES AND PERFORMANCE MEASURES

The objectives below describe the long-term aims of the Business Unit. Progress on achieving the aims is provided in the right hand column, as at the end of the 2024/25 financial year.

Performance Measure (This is how we know we’re doing it)	Target	Update (As at end of 2024/25 FY)
Number of overflows per year (all networks) due to NRSBU network capacity constraints, or mechanical or electrical failures.	Zero	Not achieved. See section 9.1
Number of pump stations with redundant pumps and power supply.	All by June 2023**	Partially achieved. Airport PS additional storm pump is yet to be installed, the pump has been ordered with installation scheduled for late - 2025. Further work is required to upgrade the pump station infrastructure to be able to accept the full generation capacity of standby generators. This is programmed to start in 2025/26.
Pump stations are to a level 3 importance level standard.	All by 2023	Work programme has been deferred due to staff workloads. Assessment of pump stations to be completed in 2025/26
Number of pump stations where able to carry out routine PS maintenance works while managing ADWF.	All by 2031	Ongoing, significantly improved with completion of the duplicate rising main. Airport PS bypass ability to be completed with storm pump replacement.
Number of times PWWF flows exceed inlet works capacity.	Zero by 2031	No occurrences during 2024/25.
Number of times diurnal flows bypass the mechanical system annually. OR Treatment capacity of mechanical plant.	Zero OR 500L/s by 2029	NRSBU had a significant period during the 2024/25 year where insufficient capacity was available within the mechanical treatment plant to treat the entirety of the incoming average dry weather diurnal flow. Bypasses occurred for more than 60 days during the year. An additional 200 litres per second capacity is required by 2029 to achieve this target. A concept design for the secondary treatment upgrade is now completed, however work is on hold subject to Taumata Arowai environmental performance standards.

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Performance Measure (This is how we know we’re doing it)	Target	Update (As at end of 2024/25 FY)
Number of odour complaint events annually.	Zero by 2025	Not achieved, NRSBU received 5 notifications relating to 5 events during the year, from a variety of locations. Ongoing work is being implemented to reduce the frequency and intensity of odours associated with the operation.
Pond free water above sludge layer.	>1m in all ponds by June 2023	Completed for ponds F1 & F2, however there is no further capacity in the sludge bund to dispose of sludge from F3. Alternative disposal options have been identified for F3, and a resource consent application for these works is being prepared.
Chemical parameters comply with consents for discharge to water when discharge occurs.	Ongoing consent compliance for all parameters	Compliance achieved in 2024/25
Effluent quality appropriate for safe and sustainable use with land irrigation systems.	Pathogens, nitrogen defined for land application requirements by 2023	NRSBU irrigation on Bell Island has been ongoing, Work commenced on additional Bell Island and Best Island Irrigation planning, and concept design and testing of the soil and wastewater has commenced. The resource consent application is being prepared.
Obtain reuse consents for appropriate land areas for Reuse Water.	Demonstrated quality performance and consents in place for reuse for dust suppression by June 2024	Target has moved to land application, away from dust suppression. Irrigation to Greenacres golf course is underway. RC process commenced for additional application areas on Bell Island, and application to Best Island. Investigations commenced for the reuse of water in industrial facilities rather than dust suppression.

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Performance Measure (This is how we know we’re doing it)	Target	Update (As at end of 2024/25 FY)
We have up to date plans as follows: Master plan (50 years focus) Activity Plan (10 years Focus) Business plan (1 year focus, but also with tentative three-year actions)	Master plan developed by June 2023 Activity and Business Plans are reviewed annually	Master Plan draft approved for consultation by Joint Committee. Activity Management Plan 2024- 2034 adopted by Joint Committee during 2024.
The number of alternate methods/options for biosolids disposal.	One by 2035	No significant progress was achieved on this target during the year
Increase in quality of biosolids.	Biosolids Reuse Development Plan Draft by June 2023	Not achieved. No significant progress made on the biosolids reuse plan.
Percentage of biosolids that is reused.	100%	Achieved for 2024/25
Annual volume of biosolids sold.	Biosolids Reuse Development Plan Draft by June 2023	Not achieved. No significant progress made on the biosolids reuse plan.
Proportion of biosolids to land or reuse/sale	100%	Achieved – 100% of biosolids reused on Moturoa/Rabbit Island
Number of days effluent is discharged to water in summer period (1 Dec to 31 March).	Draft Wastewater reuse plan developed by June 2023, with a goal to reaching zero by 2035	Wastewater reuse plan delayed. AMP includes provision towards meeting strategic goal for reduction in discharge to water.
Volume of high-value water-reuse we achieve.	Draft Wastewater reuse plan developed by June 2023	Not Achieved Wastewater reuse has been commenced but completion of the reuse plan has been delayed. The NRSBU AMP includes provision towards meeting strategic goal for reduction in discharge to water, including additional irrigation on Bell Island, Best Island, and at Greenacres Golf Course. It also includes provision for reuse of wastewater in industrial facilities.
Amount of total flow we can divert from discharge to water during summer period.	At least 75^th percentile by 2040	AMP includes provision towards meeting strategic goal for reduction in discharge to water.

** Redundant pumps may include Duty / Assist with a Shelf Spare until pumpstation upgrades are complete

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7. Additional Performance Measures

Table 2 outlines performance measures to compare performance against previous years.

Level of Service

Function

Target Technical Level of Service

Compliance

2022/23

2023/24

2024/25

Environmental Impacts

Treatment and Disposal

RMA Consent - Discharge to water

Yes

RMA Consent - Discharge Volume

Yes

RMA Consent - Discharge to Air

Yes

RMA Consent - Discharge to Land

Yes

Pump stations

RMA Consent - Aberrational Discharge

Yes

No Odour Complaints from Pump stations

Yes

No Pumpstation Overflows

No Reticulation Breaks/ Issues

Yes

No Air Valve Malfunctions

Yes

Capacity

Treatment and Disposal System

System Capacity - Load

Yes

System Capacity - Flow

No1

Pump Stations

Overloading system capacity Note 2

Yes

Yes 3

Reliability

Treatment and Disposal

Yes

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	Pump stations	No equipment failures that could lead to noncompliance with Resource Consents	Yes	Yes	Yes
	Pipelines		Yes	Yes	Yes
	Biosolids		Yes	Yes	Yes
Responsiveness	Speed of Response to Emergency and urgent maintenance works	Achievement of response times specified within Operations and Maintenance Contract	Yes	Yes	Yes
Responsiveness	Speed of Response to routine and programmed works	Achievement of response times specified within Operations and Maintenance Contract	Yes	Yes	Yes
Key Contributor Relationships	Treatment and Disposal	Overall Satisfaction	Yes	Yes	Yes
	Pumpstations		Yes	Yes	Yes
	Pipelines		Yes	Yes	Yes
	Biosolids		Yes	Yes	Yes
Notes	1. System capacity issue resolved at the end of 2024/25 with the rising main duplication works completed.
	2. Compliance relates to provision of capacity to TDC. NRSBU has sold capacity to Tasman District Council, and any overflows from Beach Road pumpstation exceed this capacity so remain the responsibility of TDC.
	3. Compliance with the pumpstation capacity relates to the fact that NRSBU can deliver its contracted capacity. Overflows occurred from the pumpstations as a result of the Nelson City and Tasman District Councils discharging flows in excess of their agreed contracted capacity.

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A screenshot of a report

AI-generated content may be incorrect.

Of the injury/illness category 2 of the incidents were non work related, from the remaining 16 there were 8 first aid incidents (all very minor injuries), 7 no treatment incidents, and one MTI. The MTI related to a worker getting a foreign object (eg sand/grit) in their eye, and the eye subsequently getting a minor infection.

12. Capital Expenditure and Carryover

An amount of $9.57 million was spent during 2024/25 on capital and renewals projects, compared to the budget of the $14.02 million – this budget included carry over from 2023/24.

	Full Budget 2024/25	Total Spend 2024/25	Carryover
Renewals
Total Renewals	$3,902,418	$ 3,029,801	$872,617
Capital
Regional Pipeline	$ 5,008,507	$ 4,885,656	$ 122,851
Other	$ 5,105,479	$ 1,657,462	$,3,448,017
Total Capital	$ 10,113,986	$ 6,543,118	$ 3,570,868

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13. Capital Expenditure - Renewal and Upgrade Project Details:

Capital expenditure for the year totalled $6,543,118 and included completion of the regional rising main duplication, sludge storage tank, workshop/amenities building, design work for WWTP high inflow distribution, design work for the secondary treatment upgrade and purchase of land adjacent to Saxton PS

	Full Budget 2024/25	Total Spend 2024/25	Carryover
Renewals
Renewal: Pump Stations & Rising Mains	$ 572,402	$ 365,095	$ 207,307
Carryover - Aerators	$ 665,311	$ -	$ 665,311
Capital
Regional Pipeline Duplication	$ 5,008,507	$ 4,885,656	$ 122,851
Sludge Management in Ponds at Bell	$ 207,741	$ 90,326	$ 117,415
Hydraulic Capacity Upgrades at WWTP	$ 1,912,880	$ 214,7908	$ 1,698,172
Best Island Irrigation	$ -	$ 74,503	-$ 74,503
Secondary Treatment System Upgrade	$ 150,831	$ 37,456	$ 113,375
Discharge Pump Duplication + Metering	$ 111,726	$ -	$ 111,726
Recycled Water Supply (Export)	-$ 197,971	$ 36,909	-$ 234,880
Land Purchase	$ 1,775,498	$ 231,259	$ 1,544,239

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17. WWTP Performance Conclusion

The assessment of environmental effects and ongoing analytical testing, undertaken as part of the operations and maintenance of the facility, continues to demonstrate the effectiveness of the Bell Island Wastewater Treatment Plant to treat wastewater so that the discharge from Bell Island has only a minor effect on the receiving environment.

The treatment facility achieved high level of pathogen reduction, with indicator bacterial concentrations consistently significantly below the allowable discharge criteria.

The Moturoa/Rabbit Island biosolids application facility also performed well, with over 36,000 m3 of biosolids being reused as fertiliser.

Monitoring of both facilities found no issues with treatment performance or environmental effects.

Analysis of the scheme capacity trends shows that loads to the plant have not increased significantly, although changes to inflow have resulted in a significant increase in discharge volumes in recent years. Discharge volume has now exceeded the allowable discharge quantity four times over the last 3 years and work is underway to accommodate this style of event within the Bell Island resource consent. It is unclear at this time whether this reflects an ongoing trend or is an unusual event.

The plant is well placed to continue to operate effectively but does require improvements to overcome flow related capacity issues, particularly in regard to the secondary treatment capacity of the plant, with concept designs for the upgrade completed. Further progress on this work is being held until the implications of Taumata Arowai’s environmental performance standards for wastewater are confirmed.

Analysis of the scheme capacity shows that flows to the plant continue to increase, and no improvement is being observed in PWWFs. Completion of the duplicate rising main at the end of the year resulted in a significant lift in the flow able to be conveyed from the Richmond PS. Flows conveyed significantly exceeded forecasts, with the capacity of the new system fully utilised. This may require acceleration of future capacity upgrades.

Plant capacity is now constrained by volumetric flows, and it is expected that this will become significantly worse during rainfall events once the upgraded pipelines have been implemented.

Volumetric capacity improvements include additional secondary treatment capacity (concept design completed), and additional bypass capacity from the treatment plant inlet to the facultative oxidation ponds (detailed design underway). Design work is underway to increase the discharge flow capacity, to allow increased volumes (eg as a result of wet weather) to be discharged within the first 3 hours of outgoing tides.

Analysis of the trends demonstrates that the quality of the discharge meets the required standards. Sampling undertaken for virus contaminants has not detected significant virus contaminants in the plant discharge.

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18. Financial Performance

Explanations for major variations from the Nelson Regional Sewerage Business Unit's 2023/24 Business Plan are as follows:

Statement of Comprehensive Revenue and Expenses

Total revenue is $1,281,000 less than budget. The sales shortfall on budget is due to the capital charge being $1,338,000 less than budget due to a lower valuation and rate of return than used in the budget. The operational recovery was $131,000 more budget.

Total expenses are $585,000 more than budget due to higher operations and maintenance costs of

$466,000, abandoned assets of $411,000 due to the pipeline duplication project and the renewal program, depreciation of $168,000, biosolid disposal of $119,000 and management costs of $132,000 partially offset by lower interest of $343,000, insurance of $120,000 and sundry expenditure of $126,000.

NELSON REGIONAL SEWERAGE BUSINESS UNIT
Statement of Comprehensive Revenue and Expense
For the year ended 30 June 2025

		Notes	Actual	Budget	Actual
			2024/25	2024/25	2023/24
Revenue			$	$	$
	Sales		14,709,108	15,915,511	13,416,181
	Other Recoveries		434,275	535,000	355,693
	Interest		175	-	353
	Gain in Fair Value of Forestry	5	26,000	-	7,000
Total Revenue			15,169,558	16,450,511	13,779,227
Less Expenses
	Management		827,462	695,000	729,010
	Interest Paid		2,185,545	2,529,000	2,056,687
	Insurance		290,273	410,000	125,669
	Depreciation	6	3,631,993	3,464,121	3,019,857
	Abandoned Assets		410,677	-	249,054
	Electricity		1,049,175	1,141,011	992,163
	Operations & Maintenance		2,772,934	2,306,500	2,406,814
	Monitoring		318,659	287,500	378,759
	Biosolids Disposal		1,289,056	1,170,000	1,309,226
	Consultancy		68,459	150,000	38,479
	Sundry		126,419	232,500	187,399
Total Expenses			12,970,653	12,385,632	11,493,118
Net Surplus			2,198,905	4,064,879	2,286,110
Other Comprehensive Revenue and Expense
	Gain on revaluation of Fixed Assets	1(b)	4,079,197	-	(1,345,112)
Total Comprehensive Revenue and Expense			6,278,102	4,064,879	940,996

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19. Conclusion

The 2024/25 year has been a successful year with the continuation of the collaborative O&M contract for the Nelson Regional Sewerage System (NRSS) and the completion of a number of new capital works.

The large rising main duplication project was brought online near the end of the financial year and quickly proved its worth in some significant rain events.

Some performance targets were not achieved, however in reviewing these areas, it needs to be noted that in most cases the targets were either very minor or resulted from activities outside the control or staffing capacity of NRSBU.

Capital project delivery performance was similar to 2023/24, with a similar value of carryover – although it is worth noting a significant portion of the carryover related to land purchase beside Saxton PS, which will settle early in the second quarter of 2025/26. The capital workload volumes are considered to have peaked, following a large upgrade requirement to improve the condition and performance of the scheme to acceptable levels, and are anticipated to start reducing to more sustainable workloads over the next 2 years.

The Regional Services team structure is now in place and positions filled. The structure allows for 2 dedicated personnel for NRSBU activities. The roles allow increased focus on environmental and sustainability performance, as well as reducing the need for external resource for activities such as compliance reporting.

Appendix A: Financial Statements

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NELSON REGIONAL SEWERAGE BUSINESS UNIT

Statement of Comprehensive Revenue and Expense For the year ended 30 June 2025

	Notes	Actual	Budget	Actual
		2024/25	2024/25	2023/24
Revenue		$	$	$
Sales		14,709,108	15,915,511	13,416,181
Other Recoveries		434,275	535,000	355,693
Interest		175	-	353
Gain in Fair Value of Forestry	5	26,000	-	7,000
Total Revenue		15,169,558	16,450,511	13,779,227
Less Expenses
Management		827,462	695,000	729,010
Interest Paid		2,185,545	2,529,000	2,056,687
Insurance		290,273	410,000	125,669
Depreciation	6	3,631,993	3,464,121	3,019,857
Abandoned Assets		410,677	-	249,054
Electricity		1,049,175	1,141,011	992,163
Operations & Maintenance		2,772,934	2,306,500	2,406,814
Monitoring		318,659	287,500	378,759
Biosolids Disposal		1,289,056	1,170,000	1,309,226
Consultancy		68,459	150,000	38,479
Sundry		126,419	232,500	187,399
Total Expenses Net Surplus		12,970,653 2,198,905	12,385,632 4,064,879	11,493,118 2,286,110
Other Comprehensive Revenue and Expense
Gain on revaluation of Fixed Assets	1(b)	4,079,197	-	(1,345,112)
Total Comprehensive Revenue and Expense		6,278,102	4,064,879	940,996

Statement of Changes in Equity For the year ended 30 June 2025

	Actual	Actual
	2024/25	2023/24
Equity at the start of Year Opening Equity	$ 69,092,473	$ 70,686,641
Plus Total Comprehensive Revenue and Expense for the year	6,278,102	940,996
Less Owners Distribution	2,609,582	2,535,164
Equity at the end of Year	72,760,993	69,092,473

Explanations of major variances against budget are found in note 12.

The attached notes form part of and should be read in conjunction with these financial statements.

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NELSON REGIONAL SEWERAGE BUSINESS UNIT

Statement of Financial Position as at 30 June 2025

	Notes	Actual		Actual
		2025		2024
Equity		$		$
Accumulated Funds	1(a)	15,159,323		15,570,000
Contingency reserve		100,000		100,000
Revaluation reserve	1(b)	57,501,670		53,422,473
Total Equity		72,760,993		69,092,473
This was represented by:
Current Assets
Cash and cash equivalents		15,813		13,162
Trade receivables from exchange transactions		360,720		582,281
Inter-entity receivables from exchange transactions		658,145		853,312
Total Current Assets		1,034,677		1,448,755
Current Liabilities
Trade Payables from exchange transations		812,672	757,760
Sundry Creditors and other payables from exchange transactions		36,955	246,202
Inter-entity payables from exchange transactions 4		1,599,367	972,183
Current portion Inter-Entity Borrowings 2 2,210,000 3,130,000
Total Current Liabilities		4,658,994		5,106,145
Net Working Capital		(3,624,316)		(3,657,390)
Non Current Assets
Property, plant and equipment	6	121,920,224		112,333,080
Intangible Assets		204,086		181,784
Forestry assets	5	261,000		235,000
Total Non Current Assets		122,385,309		112,749,863
Non Current Liabilities
Borrowings	2	46,000,000		40,000,000
Total Non Current Liabilities		46,000,000		40,000,000
Net Assets		72,760,993		69,092,473

For and on behalf of the Nelson Regional Sewerage Business Unit

Chairman General Manager

Date 10th September 2025

The attached notes form part of these financial statements

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ELSON REGIONAL SEWERAGE BUSINESS UNIT

Statement of Cash Flows For the year ended 30 June 2025

2024/25 2023/24

Notes $ $

Cash Flows from Operating Activities

Receipts from customers 15,560,110 13,248,420

Interest received	175 353
	15,560,285 13,248,773
Payments to suppliers	(6,062,278) (9,928,097)
Interest paid	(2,185,545) (1,810,485)
	(8,247,823) (11,738,582)
Net Cash Flows from Operating Activities	3	7,312,462	1,510,191

Cash Flows from Investing Activities

Purchase of property, plant and equipment (9,854,648) (13,856,491)

Net Cash from Investing Activities	(9,854,648)	(13,856,491)
Cash Flows from Financing Activities
Owners Distribution	(2,535,164)	(2,407,590)
Loan repayment	0	0
Loan raised 5,080,000 14,760,000
Net Cash from Financing Activities	2,544,836	12,352,410
Net Increase/(Decrease) in cash and cash equivalents	2,650	6,110
Cash and cash equivalents at beginning of the year	13,162	7,052
Cash and cash equivalents at the end of year	15,813	14,669

The attached notes form part of these financial statements

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NELSON REGIONAL SEWERAGE BUSINESS UNIT

Statement of Accounting policies For the year ended 30 June 2025

Reporting Entity

The Nelson Regional Sewerage Business Unit (the Business Unit) is a Joint Committee of Nelson City Council and Tasman District Council, under Section 48 of the Local Government Act 2002.

The primary purpose of the Business Unit is to manage the treatment facilities and network in a cost efficient and environmentally sustainable manner rather than making a financial return. Accordingly, the Business Unit has designated itself as a public benefit entity for the purposes of financial reporting.

The financial statements of the Business Unit are for the year ended 30 June 2025. The financial statements were authorised for issue by the Committee on the 10th September 2025.

Basis of Preparation

The financial statements have been prepared on the going concern basis, and the accounting policies set out below have been consistently applied to all periods presented in the financial statements.

Statement of compliance

The financial statements of the Business Unit have been prepared in accordance with the requirements of the Local Government Act 2002, which includes the requirement to comply with New Zealand generally accepted accounting practice (NZ GAAP).

The financial statements of the Business Unit have been prepared in accordance with Tier 2 PBE standards on the basis that the Business Unit does not have public accountability (as defined) and has total annual expenditure of less than $30 million.

These financial statements comply with Tier 2 PBE standards.

Measurement base

The financial statements have been prepared on a historical cost basis, modified by the revaluation of land, infrastructural assets and biological assets.

Functional and presentation currency

The financial statements have been prepared in New Zealand dollars and all values are rounded to the nearest dollar. The functional currency of the Business Unit is New Zealand dollars.

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Accounting Policies

The following particular accounting policies which materially affect the measurement of results and financial position have been applied:

a) Revenue

Revenue is measured at the fair value.

Interest income is recognised using the effective value method.

Exchange and non-exchange transactions

An exchange transaction is one in which Business Unit receives assets or services, or has liabilities extinguished, and directly gives approximately equal value in exchange. Non- exchange transactions are where Business Unit receives value from another entity without giving approximately equal value in exchange

Sales and provision of services

Revenue from the rendering of services is recognised by reference to the stage of completion of the transaction at balance date, based on the actual service provided as a percentage of the total services to be provided. These are exchange transactions and include charges to the two owner Councils, three large industrial customers and Septage tank operators, and rentals. The contracts with the two Councils and three large industrial customers provide for a capital charge for access to treatment and an operational charge based on actual useage and actual operating costs.

b) Borrowing Costs

Borrowing costs are recognised as an expense in the period in which they are incurred.

c) Cash and Cash equivalents

Cash and Cash equivalents includes cash on hand, deposits held at call with banks and other short term highly liquid investments with orginal maturities of three months or less.

d) Trade and other receivables

Trade and other receivables are initially recorded at face value less any provision for uncollectability.

A provision for impairment of receivables is established when there is objective evidence that the Business unit will not be able to collect all amounts due according to the original terms of the receivables. The amount that is uncollectable is the difference between the amount due and the present value of the amount expected to be collected.

e) Trade and other payables

Short term creditors and other payables are recorded at their face value.

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f) Borrowings

Borrowings are initially recognised at their face value plus transaction costs. After initial recognition, all borrowings are measured at amortised cost using the effective interest method.

Borrowings are classified as current liabilities unless the Council or group has an unconditional right to defer settlement of the liability for at least 12 months after balance date.

g) Income tax

As a Joint Committee of Nelson City Council and Tasman District Council the Business Unit's surplus is incorporated into the accounts of the two councils. The Business operations are a non-taxable activity for each Council.

h) Goods and Services Tax

The financial statements have been prepared exclusive of goods and services tax (GST) with the exception of trade receivables and payables, which are stated with GST included.

i) Distribution Policy

Any Net Surplus Income before extraordinary items over budget, as decided by the Committee, is returned to the Councils on an equal share basis. These are exchange transactions.

j) Property, Plant and Equipment

There are three categories of Property, Plant and Equipment:

- Freehold land

- The Infrastructural Network – incorporates pipelines, pump stations, ponds, aerators, clarifiers, odour control unit, power supply and buildings

- Work in Progress

Revaluation of property plant and Equipment

- Land is reviewed annually and revalued at market value every three years or if there is a material movement. The latest valuation was conducted as at 30 June 2024 by QV Valuations.

- Infrastructural assets are valued annually at depreciated replacement cost. The latest valuation was conducted at 30 June 2025 by Council staff and peer reviewed by WSP Ltd. Work in progress is recognised at cost less impairment and is not depreciated.

The results of revaluing land and infrastructural assets are credited or debited to other comprehensive revenue and expense and are accumulated to an asset revaluation reserve in equity for that class of asset. Where this results in a debit balance in the asset revaluation reserve for any class of asset, this is expensed in the Surplus or Deficit. To the extent that increases in value offset previous decreases debited to the Surplus or Deficit, the increase is credited to the Surplus or Deficit.

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Additions

The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits will flow to the Business Unit and the cost can be measured reliably.

Vested infrastructure assets have been valued at the time of vesting based on the actual quantities of infrastructure components vested and the current 'in the ground' cost of providing identical services.

Work in progress is measured at cost less impairment and is not depreciated.

New Business Unit assets are added between valuations are recorded at cost except when acuired through a non-exchange transaction. Where as asset is acquired through a non-exchange transaction, such as vested assets it is recognised at fair value as at the date of acquisition.

k) Depreciation

Depreciation is provided on a straight line basis on all PPE other than Land at rates which will write off the cost/valuation of the assets over their useful lives. The useful lives of the major classes of infrastructural assets have been estimated as follows:

Sewerage Network 10 - 999 years

Buildings 50 years

Plant & Equipment 5 - 50 Years

The Business Unit has implemented an activity management plan for the continuing replacement and refurbishment of components to ensure that conveying, treatment and disposal systems are maintained to provide a satisfactory service on an ongoing basis.

iii) Work in progress is valued at cost of construction. Depreciation is applied at time of commissioning.

l) Biological Assets

Forestry consisting of 18 hectares planted on Bell Island adjacent to the ponds is revalued annually by P F Olsen and Company Ltd to Market Value. The latest valuation available is at 30 June 2025.

The movement in the Forestry valuation is recorded in the Surplus or Deficit as income if a credit and as an expense if a debit.

m) Budget figures

The budget figures are those approved by the Committee at the beginning of the year in the Business Plan. The budget figures have been using accounting policies that are consistent with those adopted by the Committee for the preparation of financial statements.

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n) Critical accounting estimates and assumptions

In preparing these financial statements the Business Unit has made estimates and assumptions concerning the future. The key assumptions relate to the valuation of the Business Unit's property, plant and equipment. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including estimates and expectations of future events that are believed to be reasonable under the circumstances.

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NELSON REGIONAL SEWERAGE BUSINESS UNIT

Notes to and forming part of the Financial Statements for the year ended 30 June 2025

2024/25 2023/24

$ $

1 Equity

The Business Unit is jointly owned by the Nelson City Council and the Tasman District Council.

1(a) Accumulated Funds
Opening Balance	15,570,000	15,819,055
Net Surplus	2,198,905	2,286,109

Distribution to Owners (2,609,582) (2,535,164)

Closing Balance 15,159,324 15,570,000

1(b) Revaluation Reserve
Opening Balance	53,422,473	54,767,585
Revaluation Movements Land revaluation	0	681,500
Buildings revaluation	(39,187)	0
Sewerage network revaluation	539,045	(2,026,612)
Plant & Equipment revaluation	(26,140)	0
Total Revaluation Movement	473,718 (1,345,112)
Closing Balance	53,896,191 53,422,473
Balance held as follows:-
Land	3,419,857	3,419,857
Buildings	331,093	370,280
Sewerage network	49,937,638	49,398,593
Plant & Equipment	207,603	233,743
Total Revaluation Reserve	53,896,191	53,422,473

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2 Term Loans

A core funding facility exists with Tasman District and Nelson City for 110% of the current funding with a constant maturity of no less than five years.

Interest rates payable range was 5.77% to 4.56% with a weighted average of 4.86%. (For 2023/24 the range was 6.57% to 5.42% with a weighted average of 5.9%).

	2024/25	2023/24
Total Loans	48,210,000	43,130,000
Less Current Portion	2,210,000	3,130,000
Term Portion	46,000,000	40,000,000
1 to 2 years	-	-
2 to 5 years	46,000,000	40,000,000
	46,000,000	40,000,000

A working capital facilty exists with Nelson City with interest rates payable on the same rate as the core funding facility. At 30 June 2025 $2,210,000 was drawn down (2024

$3,130,000).

The interest rate on the borrowings from the two Councils is set at the three year swap rate plus a margin equivalent to the rate charged by Westpac bank to Nelson City Council. As at 30 June 2025 this rate was 4.41% which will be used to calculate the Capital Charge in the Trade Waste charges to customers for 2025/26. (June 2024 5.77%)

3 Related party transactions

Related party disclosures have not been made for transactions with related parties that are within a normal supplier or client/recipient relationship on terms and conditions no more or less favourable that those it is reasonable to expect the Business Unit would have adopted in dealing with the party at arm's length in the same circumstances.

4 Inter-entity payables from exchange transactions

Inter-entity payables from exchange transactions is the amount owing to the two Council owners in regard to the unpaid owners distribution.

5 Forestry Assets

The Biological Assets are valued at Fair Value less cost to sell. Any movement in the valuation is recorded in the Profit and Loss Account.

	2025 $	2024 $
Opening Balance	235,000	228,000
Current increase (decrease) in Market Value	26,000	7,000
Closing balance	261,000	235,000

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6 Property, plant and equipment continued - further disclosures

There are a number of Estimates and Assumptions exercised when valuing the infrastructural assets using the depreciated replacement cost method. These include:

- Estimating any obsolescence or surplus capacity of the asset.

- Estimating the replacement cost of the assets.

- Estimating the remaining useful life over which assets are depreciated. To minimise this risk, infrastructural assets useful lives have been determined with reference to the NZ Infrastructural Asset Valuation and Depreciation Guidelines and have been adjusted for local conditions based on past experience. Asset inspections, deterioration, and condition modelling are also carried out regularly as part of the asset management planning activities, which provides further assurance over useful life estimates.

There are no restrictions on the Business Units' Property, plant and equipment.

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6 Property, plant and equipment *Valuation / Cost*	Land	Sewerage Network	Buildings		Plant & Equipment
Balance June 2023	6,526,000	96,175,892	1,005,646		236,641
Additions 2024	41,002	11,631,603	1,269,535		8,506
Impairment 2024	- -	249,054	-		-
Revaluation 2024	681,500	(2,075,751)	27,365		21,774
Revaluation transfer 2024	-	(2,949,590)	(27,365)		(21,774)
Balance June 2024	7,248,502	102,533,100	2,275,181		245,147
Additions 2025	231,259	8,836,781	405,046		55,467
Transfers 2025	-	415,148	384,157		30,991
Impairment 2025	-	(410,677)	-		-
Revaluation 2025	0	4,076,792	10,897 -		8,492
Revaluation transfer 2025	-	(3,537,747)	(50,084)		(17,648)
Balance June 2025	7,479,761	111,083,100	3,025,197		305,465
*Accumulated Depreciation*
Balance June 2023	- -		- -
Depreciation charge 2024	-	2,949,590		27,365	21,774
Revaluation transfer 2024	- -	2,949,590	-	27,365 -	21,774
Balance June 2024	-	-		-	-
Depreciation charge 2025	- 3,537,747		50,084 17,648
Revaluation transfer 2025	- (3,537,747)		(50,084) (17,648)
Balance June 2025	- -		- -

*Carrying amounts*
Balance June 2024	7,248,502	102,533,100	2,275,181	245,147
Balance June 2025	7,479,761	111,083,100	3,025,197	305,465

Work in Progress (Included above)

Property, plant and equipment in the course of construction by class of assets is detailed below

Balance June 2024	-	17,111,654	1,279,489	-
Balance June 2025	231,259	1,615,479	-

There are a number of Estimates and Assumptions exercised when valuing the infrastructural assets using the dep include:

- Estimating any obsolescence or surplus capacity of the asset.

- Estimating the replacement cost of the assets.

- Estimating the remaining useful life over which assets are depreciated. To minimise this risk, infrastructural asse reference to the NZ Infrastructural Asset Valuation and Depreciation Guidelines and have been adjusted for local c Asset inspections, deterioration, and condition modelling are also carried out regularly as part of the asset manage further assurance over useful life estimates.

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Vehicles Software Total

44,501		103,988,680
-		12,950,646
-	-	249,054
-		(1,345,112)
-	(2,998,729)
44,501	112,346,431
-	9,528,553
		-
-	(410,677)
-	4,079,197
-	(3,605,479)
44,501	121,938,025

8,901	8,901
4,450	3,003,179
-	(2,998,729)
13,351	13,351
4,450	3,609,929
-	(3,605,479)
17,801	17,801

31,150	-	112,333,080
26,700	-	121,920,224

- 18,391,143

1,846,738

reciated replacement cost method. These

ts useful lives have been determined with onditions based on past experience. ment planning activities, which provides

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Opening balance 198,462 135,104

Additions 44,366 63,357

Closing balance 242,828 198,462

Accumulated amortisation

Opening balance 16,678 -

Depreciation 22,064 16,678

Closing balance 38,742 16,678

Carrying Value

Balance 204,086 181,784

8 Financial Instruments

The Business Unit is party to financial instrument arrangements as part of its everyday operations. These financial instruments include cash and cash equivalents, accounts receivable and payable, investments, and loans which have all been recognised in the financial statements. Revenues and expenses in relation to all financial instruments are recognised in the Statement of Comprehensive Revenue and Expense.

a) Credit Risk

Financial instruments which are potentially subject to credit risk consist of bank balances, accounts receivable and short term deposits.

	2025 $	2024 $
Bank Balances	15,813	13,162
Accounts Receivable	1,018,865	1,435,592
No collateral is held on the above accounts b) Concentration

Concentrations of credit risk with respect to accounts receivable are high, with Nelson City Council, Tasman District Council and two private users as major customers. However, all are considered high credit quality entities.

c) Currency Risk

Nelson Regional Sewerage Business Unit has no currency risk as any financial instruments it deals with are all in New Zealand dollars.

d) Fair value interest rate risk

The Business Unit is exposed to interest rate risk and seeks to minimse this exposure through the adopted treasury policy which provides for an interest rate based on a 3-year market swap rate on the facilities with the two owner councils.

9 Statement of Contingent Assets and Contingent Liabilities

The Business Unit has no contingent asset or contingent liabilities as at 30 June 2025

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10 Statement of Commitments

The Business Unit has capital commitments of $2,280,000 as at 30 June 2024. (2024

$3,495,000).

11 Subsequent events

There are no material adjusting events after balance date.

12 Explanation of major variances against budget Statement of Comprehensive Revenue and Expense

Total expenses are $585,000 more than budget due to higher operations and maintenance costs of $466,000, abandoned assets of $411,000 due to the pipeline duplication project and the renewal program, depreciation of $168,000, biosolid disposal of $119,000 and management costs of $132,000 partially offset by lower interest of $343,000, insurance of

$120,000 and sundry expenditure of $126,000.

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Nelson Regional Sewerage

Business Unit 10 September 2025

Report Title: R25-423 Capital and Renewal Works Update and

Carryover 2024/25

Report Author: Brad Nixon (Operations Manager Regional

Services)

Report Authoriser: Alec Louverdis (Deputy Chief Executive / Group

Manager Infrastructure)

Purpose of Report

1. To consider and approve the Nelson Regional Sewerage Business Unit (NRSBU) 2024/25 financial year capital carryover requirements to 2025/26.

Summary

2. A significant amount of renewal and capital upgrading work has commenced but has not been completed during the 2024/25 financial year. This work is necessary, and it is therefore important to carry over unspent capital from 2024/25 to 2025/26 to allow this work to be undertaken.

Recommendation

That the Nelson Regional Sewerage Business Unit

1. Approves the carryover of capital ($3,570,868) and renewals budgets ($872,617) from the 2024/25 financial year to the 2025/26 financial year, to ensure continuation of urgent and planned works.

Background and Discussion

3. NRSBU has continued a challenging renewals and capital programme during the 2024/25 financial year. Many keystone projects have been completed during the year, with overall capital funding spend similar to the previous year.

4. The following table details overall renewals and capital expenditure to the end of June 2024, along with the proposed carryover.

	Full Budget 2024/25	Total Spend 2024/25	Carryover
Renewals
Total Renewals	$3,902,418	$ 3,029,801	$872,617
Capital
Regional Pipeline	$ 5,008,507	$ 4,885,656	$ 122,851
Other	$ 5,105,479	$ 1,657,462	$,3,448,017
Total Capital	$ 10,113,986	$ 6,543,118	$ 3,570,868

Table 1: Overall 2024/25 Carryover

5. The table below details renewals and capital works with carryover values above $50,000.

	Full Budget 2024/25	Total Spend 2024/25	Carryover
Renewals
Renewal: Pump Stations & Rising Mains	$ 572,402	$ 365,095	$ 207,307
Carryover - Aerators	$ 665,311	$ -	$ 665,311
Capital
Regional Pipeline Duplication	$ 5,008,507	$ 4,885,656	$ 122,851
Sludge Management in Ponds at Bell	$ 207,741	$ 90,326	$ 117,415
Hydraulic Capacity Upgrades at WWTP	$ 1,912,880	$ 214,7908	$ 1,698,172
Best Island Irrigation	$ -	$ 74,503	-$ 74,503
Secondary Treatment System Upgrade	$ 150,831	$ 37,456	$ 113,375
Discharge Pump Duplication + Metering	$ 111,726	$ -	$ 111,726
Recycled Water Supply (Export)	-$ 197,971	$ 36,909	-$ 234,880
Land Purchase	$ 1,775,498	$ 231,259	$ 1,544,239

Table 2: Specific 2024/25 Carryover Details

6. Specifics of proposed renewal carryovers are as follows:

a. Pump Stations and Rising Mains:

· The Airport pump station storm pump has been procured, along with major fittings, and detailed design for replacement works is completed. Physical works are expected to start in early 2026

· Detailed designs of the Wakatu PS upgrade are substantially complete. A contractor for the works is expected to be procured in late 2025, with works anticipated to start in 2026.

· The Beach Rd storm pump replacement has been ordered and is expected to be installed in late spring 2025.

7. Aerators: There is a significant renewals project for the aeration basin with options review work commencing during 2021/22. With funding for a major secondary treatment upgrade available from 2024/25 officers are now considering a holistic approach to the secondary system, including alteration of the aeration basin function as part of this review, this work has been delayed while NRSBU seek clarity on the Taumata Arowai environmental performance standards for wastewater, and their impact on the Bell Island facility.

8. Specifics of proposed capital carryovers are as follows:

a. Regional pipeline duplication: Physical works are now completed on the duplicate rising main, with only minor surfacing works at Beach and Saxton pumpstations to be completed. As-built drawings and updated to systems records and management plans will be completed in 2025/26.

b. Sludge management:

9. Pond desludging has been completed in ponds F1 and F2. The sludge bags in the bund are now full and have been capped.

10. Desludging is still to be completed in F3. A consent is being prepared for disposal via beneficial land application on Bell and Best Islands. Desludging work on F3 is expected to commence in 2026.

11. This work is a condition of the Bell Island WWTP consent.

a. Hydraulic capacity upgrades at the WWTP: Concept design work on managing high inflows to the WWTP commenced in 2024/25, however the initial outcomes did not meet budgetary or power supply constraints. An alternative approach of upsizing the gravity convenance system at the WWTP (which is due for renewal) was considered which achieved project objectives within budget and power constraints. This has now moved to detailed design, with works anticipated to commence in 2026.

12. Best island irrigation: the NRSBU Joint Committee agreed to utilise some of the funding allocated against other deferred projects to advance the consent application for land application of treated wastewater and sludge to Best Island. This funding stream will be met through AMP funding committed in future years.

13. Secondary treatment upgrade: Concept design for the secondary treatment upgrade has been completed, however the work stream has been placed on hold whilst the Taumata Arowai environmental performance standards for wastewater are finalised. The new standards are expected to have a significant impact on the operation of the Bell Island WWTP, and ensuring the upgrade aligns with the standards is critical. Detailed design is

expected to commence at some point in 2026, however physical works are unlikely to commence until 2027 at the earliest.

14. Discharge pump duplication and metering: Whilst assessment of the Bell Island diffuser capacity has been completed, design of the pump duplication and metering has been delayed. Officers have been focused on consent variations which affect the scale of the discharge rate required, and therefore the work being undertaken to design the discharge upgrade has been delayed. Work has now recommenced on the pump duplication and metering design.

a. Recycled water supply (export): This work is the finalisation of the project to supply recycled water to Greenacres for irrigation. The Joint Committee agreed to commence these works early, utilising funding from other delayed/deferred projects, with future funds allocated in the AMP.

b. Land purchase: the purchase of land beside the Saxton pumpstation progressed slower than planned during the 2024/25 year due to delays in completing some of the conditions of the Sale and Purchase Agreement for the land. The purchase is now unconditional, with settlement expected in spring 2025.

Options

15. Two options have been considered for the carryover – Approving the carryover and not approving the carryover. These are outlined in the table below.

Option 1: Approve the carryover

Advantages

· The capital projects will be able to continue.

· Upgrades will be possible to reduce environmental and performance issues.

· Compliance with resource consents

Risks and Disadvantages

· Regional services staff will be subjected to higher workload delivering the capital projects (although this is mitigated somewhat now the Regional Services structure is fully staffed, and through support from consultants where needed)

· More capital money will be spent, which will increase the financing costs to contributors.

Option 2: Do not approve the carryover

Advantages

· Less money will be spent, resulting in lower financing costs to contributors.

· Reduced workload for Regional Service staff due to fewer capital and renewal projects

Risks and Disadvantages

· The capital upgrade works will not be undertaken resulting in environmental and performance issues.

· Non-compliance with resource consent conditions

· Increased workload for Regional Service staff because of increased maintenance requirements, along with managing environmental and performance issues

16. Officers support Option 1 – approving the carryover.

Important considerations for decision making

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.

Consistency with Community Outcomes and Council Policy

Our infrastructure is efficient, cost effective and meets current and future needs.

Risk

The risk of not approving the carry-overs is that contracts awarded and equipment ordered will not be able to be completed, and that urgent and planned works will not be able to be undertaken.

Financial impact

This report has considered funding approved by the Councils and transfers capital funding to allow the delivery of the required capital upgrades as outlined in the annual and long term plans.

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

Climate Impact

A key feature of the capital programme is the ability to implement systems to reduce greenhouse gas emissions and environmental and cultural issues.

Carryover of funds allows these programmes to continue.

Inclusion of Māori in the decision making process

No engagement with Māori has been undertaken in preparing this report but iwi have representation on the Joint Committee.

Delegations

Enter into all contracts 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.

Conclusion and next steps

17. It is recommended that $3,570,868 of capital and $872,617 of renewal funds be carried forward into 2025/26. Of these figures $2.28M has already been committed either via standalone projects or the operations and maintenance contract.

Attachments

Nil

Nelson Regional Sewerage

Business Unit 10 September 2025

Report Title: R25-421 Draft Business Plan 2026/27 Report Author: Nathan Clarke (General Manager Regional

Services)

Report Authoriser: Alec Louverdis (Deputy Chief Executive / Group

Manager Infrastructure)

1. Purpose of Report

1.1. To provide the Nelson Regional Sewerage Business Unit (NRSBU) draft Business Plan 2026/27 to the Committee and to seek approval for circulation to Nelson City Council (NCC) and Tasman District Council (TDC) for review and feedback.

2. Summary

2.1. The draft Business Plan (BP) is attached for approval to be presented to the two Councils for feedback. The draft BP has been developed based on year 3 of the NRSBU Activity Management Plan (AMP) 2024-34

3. Recommendation

That the Nelson Regional Sewerage Business Unit

1. Approves the Nelson Regional Sewerage Business Unit draft Business Plan 2026/27 for submission to Nelson City Council and Tasman District Council for their consideration and feedback, with delegation of all minor amendments to the Nelson Regional Sewerage Business Unit Chairperson and General Manager

Recommendation to Nelson City and Tasman District Councils

That the Nelson City and Tasman District Councils

1. Receive the Nelson Regional Sewerage Business Unit draft Business Plan 2026/27 for review and provide feedback to the Nelson Regional Sewerage Business Unit, if required.

4. Background and Discussion

4.1. The NRSBU Memorandum of Understanding (MOU) outlines several activities required by the NRSBU along with specified timing for these activities.

4.2. The MOU requires that the NRSBU prepare a draft Business Plan and that this be presented to the councils by 31 December each year.

4.3. A draft BP has been prepared to reflect the activities proposed in the third year of the draft NRSBU Activity Management Plan 2024 – 2034 (AMP).

5. Operational Costs

5.1. The costs to run the NRSBU during 2026/27 increased compared to 2025/26 reflecting inflationary cost increases incurred since the 2025/26 budget was set.

5.2. The draft BP is based on assumptions and data associated with costs incurred during the 2024/25 financial year and projected costs for the 2025/26 financial year.

5.3. The operational costs for 2026/27 also include additional costs associated with longer cycle consent requirements, including monitoring and technology review reports along with discharge consent benthic surveys.

5.4. The 2026/27 budget for electricity incorporated savings to the NRSBU following the construction of the solar farm on Bell Island. The completion of the solar farm may now be later than NRSBU anticipated (noting this is not an NRSBU project but provides benefit to NRSBU) and therefore the budget has been adjusted to reflect later realisation of the savings.

6. Capital Works Programme

6.1. The draft BP outlines the expected expenditure over the 2026/27 financial period based on the third year of the NRSBU AMP.

6.2. Due to uncertainty around the proposed Environmental Performance Standards for Wastewater proposed by Taumata Arowai the work to upgrade the secondary treatment system has been deferred by one year, with physical works expected to commence in 2027/28, instead of 2026/27 as indicated in the AMP.

6.3. The funding not being spent on the secondary treatment upgrade has allowed the acceleration of work to facilitate treated wastewater irrigation to Best Island, which has been brought forward to allow earthworks to start in 2026/27.

6.4. The net result of these changes is a reduction in planned capital spend for 2026/27.

6.5. Other capital expenditure included in the BP matches values incorporated in the AMP but escalated to reflect inflationary cost increases since the AMP was generated.

6.6. Key aspects of this draft BP include:

6.6.1. Investment in additional secondary treatment capacity to increase peak flow treatment ability and to allow treatment of additional volume for reuse.

6.6.2. Expansion of land disposal capacity on Bell Island

6.6.3. Continuation of desludging of ponds at the WWTP to meet consent requirements.

6.6.4. Duplication of the discharge pump and upgrades to the discharge metering system.

6.6.5. Reconnection of secondary rising mains.

7. Options

7.1. The following table outlines three options for the NRSBU draft Business Plan 2025/26. Officers support option 3.

Option 1: Do not adopt the draft Business Plan
Advantages	· There are no advantages
Risks and Disadvantages	· NRSBU will not be meeting the requirements of the MoU adopted by Nelson City and Tasman District councils. · NRSBU will not have approval to continue its works programme. · NRSBU will not meet its legal requirements, capital works programme, health and safety obligations or performance targets. · System improvements to meet consent requirements and levels of service would not be carried out – this could result in consent condition breaches and subsequent infringements.
Option 2: Request amendments to the draft Business Plan prior to submission to NCC and TDC for feedback.
Advantages	· Allows the NRSBU board to consider and modify the scope of proposed capital works or the timing of the proposed capital works.
Risks and Disadvantages	· If significant changes are made, the revised Business Plan will not be available in time to

	meet the 31 December due date required by both Councils in the NRSBU MoU. · May require rework of the plan and approval of the revised plan if significant changes are made to the scope or timing of the capital works. · Regional services staff capacity will be stretched.
Option 3: Adopt the draft Business Plan and submit to NCC and TDC for feedback – recommended option.
Advantages	· Allows continuation of existing capital programmes. · Allows ongoing renewal and upgrade of the scheme. · Allows NCC and TDC to include this in their consultation process. · Allows NCC and TDC to provide feedback in a timely manner for NRSBU consideration
Risks and Disadvantages	· Would not include any alterations to the works programme required by the Joint Committee.

8. Important considerations for decision making

8.1. Fit with Purpose of Local Government

8.2. Consistency with Community Outcomes and Council Policy

The NRSBU Business Plan feeds into the NCC and TDC Annual Plans and the Business Plan has been prepared based on the NRSBU 2024 -2034 Activity Management Plan.

8.3. Risk

This report includes allowance or mitigation of environmental and business continuity risks. The business plan will be submitted to TDC and NCC for feedback, this feedback will be considered by the Board. The risk of not approving the business plan is that this could delay the NRSBU implementing the works outlined and could result in significant adverse

effect environmentally, financially and to the sustainability of wastewater in the Nelson Tasman Region.

8.4. Financial impact

The NRSBU draft Business Plan 2026/27 incorporates the capital and operational costs set out in the NRSBU Activity Management Plan 2024- 34, with some minor amendments due to inflation.

8.5. 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.

8.6. Climate Impact

A key feature of the capital programme is the ability to implement systems to reduce greenhouse gas emissions and environmental and cultural issues. Furthermore, the impacts of climate change are considered significantly in the NRSBU AMP, upon which this Business Plan is based.

8.7. Inclusion of Māori in the decision making process

No engagement with Māori has been undertaken in preparing this report but iwi have representation on the Joint Committee.

8.8. Delegations

Enter into all contracts 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

Powers to Recommend to Councils:

Any other matters under the areas of responsibility of the Business Unit and detailed in the Memorandum of Understanding

1. PURPOSE

The purpose of the Nelson Regional Sewerage Business Unit Business Plan 2026/27 is to summarise management goals and objectives to deliver wastewater collection and treatment services to the region; and to improve the effectiveness and efficiency in the delivery of those services.

2. MEMORANDUM OF UNDERSTANDING REQUIREMENTS

The Memorandum of Understanding states that the NRSBU Board shall by 31 December each year supply to the Councils (Nelson City and Tasman District Councils) a copy of its Business Plan. The Business Plan outlines the management of the Nelson Regional Sewerage Business Unit and the assets for the ensuing year, together with any variations to the charges proposed for that financial year.

The Memorandum of Understanding (MoU) commenced on 1 July 2015 and shall terminate on 30 June 2025. The MoU was extended in 2025 and now terminates on 30 June 2030

The Nelson Regional Sewerage Business Unit was established in July 2000, replacing the former Nelson Regional Sewerage Authority established in the 1970s.

3. INTRODUCTION

This Business Plan 2026/27 outlines the projects and initiatives to be implemented during the year. It also outlines the associated funding required and the details of the performance targets and measures.

The Business Plan is aligned with the NRSBU Activity Management Plan 2024-2034 (AMP) and relates to year 3 of the AMP. It includes business objectives and performance targets (Section 7) and the three-year financial renewal forecasts (Section 8) and the three-year capital plan (Section 9). The following key pieces of information from those other documents are included in the appendices of this business plan:

APPENDIX B: Business Improvement Plan APPENDIX C: Bell Island Treatment Schematic

APPENDIX D: Focus on Community and Environmental Benefits APPENDIX E: Draft 10 Year Capital Expenditure Diagram

4. MISSION STATEMENT

The NRSBU’s mission statement is:

Resilient, reliable, and effective infrastructure that supports and protects our community and environment.

Area	Goal
Our approach	Implement and operate infrastructure considering the needs of our community. Our priorities for this are protection of public health, the environment, and cultural values.
Our Vision/Ambition/Aspiration	We will work towards the beneficial reuse of resources.
Our conduct	We will undertake our activities transparently, fairly, respectfully, in a timely manner and we will provide regional infrastructure leadership.

6. STRATEGIC GOALS AND PEFORMANCE OBJECTIVES

The NRSBU aspires to achieve the following goals:

Strategic Goal	Objective (This is what it looks like)	Level of Service (This is how we do it)
We will implement and operate infrastructure considering the needs of our community. Our priorities for this are protection of public health, the environment, and cultural values.	Containment and conveyance that is resilient and minimises adverse impacts on the health of the environment and community	We have sufficient capacity in our network to cope with peak flows
		We are resilient to mechanical and electrical failures and natural hazards
		We can readily maintain the network
	Resilient wastewater treatment that minimises the impact on the environment and community	The treatment plant can reliably accept (N+1 for critical assets) all peak flows from the network
		The treatment plant can fully treat all dry weather flows
		The treatment plant does not create odour issues for the community
		Effluent Quality meets or exceeds required discharge requirements
	Long term vision that considers the future needs of the community	Our ongoing business is safeguarded through engagement with council planning processes,
		We have long term plans for our activities and their impacts and update of the NRSBU Masterplan occurs in the year prior to the AMP
		Have systems in place for the ongoing monitoring and reporting of emissions, and a plan for emission activities including timing and cost estimates.
	Alternative methods of biosolids disposal that protect public health and the environment and are sensitive to cultural values	Have a backstop for issues with biosolids disposal
We will work towards the beneficial reuse of resources	Use of ongoing improvement processes to identify, implement, and operate feasible biosolids reuse	Treatment to maintain 100% reuse of biosolids
		Increase reuse value
		Maintain 100% diversion of biosolids from disposal to landfill
	Identify implement and operate feasible systems and infrastructure for the reuse of wastewater	We minimise the amount of effluent we discharge to water (working towards zero days discharge to water during summer)

The NRSBU functional activities are managed by the Nelson City Council and therefore the NRSBU functional activities shall comply with the requirements of the Nelson City Council Health and Safety Policy and fully subscribe to the vision for a Zero Harm Culture.

All strategic goals are important and no one goal will be pursued at the expense of another.

It is important to note that following the reversal of the 3 Waters legislative changes, Central

Government are now proposing regionally led changes to the delivery of water services in New Zealand, via the Local Waters Done Well strategy. These changes may have a significant influence on NRSBU, however at this time NRSBU is unable to confirm the any outcomes of this work and therefore will continue with Business as Usual.

In 2025 Taumata Arowai issued its proposed Environmental Performance Standards for Wastewater. These standards intend to apply set consent conditions for wastewater operations, which would be implemented on the renewal of any existing consents. The proposed standards indicated significant impact to the operation of Bell Island WWTP if implemented as proposed. At the time of preparation of this Business Plan final standards had not been issued by Taumata Arowai. Whilst these standards will have an effect on the strategic and operational plans for NRSBU, the scale of these effects is not yet known. This uncertainty has impacted some capital plans, with deferral of secondary treatment upgrades for the WWTP until final standards are known.

It is necessary for NRSBU to maintain an understanding of these issues so that an appropriate response can be made if required.

7. NRSBU STRUCTURE

The current structure of the Nelson Regional Sewerage Business Unit is as follows:

The Regional Services staffing structure is shown below. This structure has a dedicated Operations Manager for each Business Unit, and one additional staff member for each business unit. This revised structure adds some additional capacity and removes the Activity Manager roles as a dedicated role. The structure is currently fully staffed.

8. BUSINESS OBJECTIVES AND PERFORMANCE MEASURES

The objectives outlined below describe the long-term aims of the business unit. Performance measure targets and dates (where they are not specified below) are set annually in the Business Plan along with performance measures for projects identified in the Activity Management Plan. Performance will be reported quarterly to the Board and annually to the shareholding councils.

Performance Measure (This is how we know we’re doing it)	Target
Number of overflows per year (all networks) due to NRSBU network capacity constraints, or mechanical or electrical failures.	Zero
Number of pump stations with redundant pumps and power supply.	All by June 2023*
Pump stations are assessed for structural integrity to a level 3 importance level standard.	All by 2025
Number of pump stations where able to carry out routine PS maintenance works while managing ADWF.	All by 2031
Number of times PWWF flows exceed inlet works capacity.	Zero by 2031
Number of times dry weather diurnal flows bypass the mechanical system annually. OR Treatment capacity of mechanical plant.	Zero OR 500L/s by 2029
Number of odour consent breaches annually. AND Number of odour events notification annually	Zero AND Zero by 2035 (following implementation of anaerobic digestion)

Performance Measure (This is how we know we’re doing it)	Target
Pond free water above sludge layer.	>1m in all ponds by June 2026
Chemical parameters comply with consents for discharge to water when discharge occurs.	Ongoing consent compliance for all parameters.
Effluent quality appropriate for safe and sustainable use with land irrigation systems.	Pathogens, Nitrogen defined for land application requirements by 2025
Obtain reuse consents for appropriate land areas for Reuse Water.	Consents for expansion of Bell Island irrigation and implementation of Best Island irrigation in place by June 2027
We have up to date plans as follows: Master plan (50 years focus) Activity Management Plan (10 years Focus) Business Plan (1 year focus, but also with tentative three-year actions)	Master plan adopted by June 2025 Activity Management and Business Plans are reviewed annually
The number of alternate methods/options for biosolids disposal.	One by 2035
Increase in quality of biosolids.	Biosolids Reuse Development Plan update Draft by June 2025
Percentage of biosolids that is reused.	100%
Annual volume of biosolids sold.	Biosolids Reuse Development Plan update Draft by June 2023
Proportion of biosolids to land or reuse/sale	100%
Volume of high-value water-reuse we achieve.	Draft Wastewater reuse plan developed by June 2025
Amount of total flow we can divert from discharge to water during summer period (1 Dec to 31 Mar) AND Number of days effluent is discharged to water in summer period (excluding significant rainfall event) by managing buffer storage in ponds	At least 10,000m3/day by 2040 AND Zero by 2040

* Redundant pumps may include Duty / Assist with a Shelf Spare until pumpstation upgrades are complete

9. THREE YEAR RENEWAL EXPENDITURE FORECAST ($’000)

Renewal Plan ($,000)	2025/26	2026/27	2027/28	2028/29
Pump Stations and Rising Mains	583	2,685	1,667	856
Inlet, Aeration Basin, Clarifier and Ponds	949		1,706	1,872
Solids Handling and Biosolids pipelines.	1,376		256	360
Rabbit Island	66	31	31	65
Facilities and Roads	80	63	52	52
General	205	213	213	213
Total	3,259	2,992	3,925	3,418

Note: 2025/26 renewals budget includes carryover from 2024/25. 2026/27 renewals budgets do not include carry overs from the 2025/26 financial year

The renewal programme of the NRSBU assets is developed around lifecycle and condition assessment.

An iterative process is followed whereby the renewal programme is considered annually with inputs from the Operation and Maintenance operator and a review of remaining useful life of assets.

Condition assessment reports may be commissioned where additional information is required to ensure optimal spend on renewals.

One key renewal item that is currently unquantified is any repair works arising following the inspection work in 2025/26 for the existing 600mm diameter concrete pipe between Monaco and Bell Island. Whilst renewal funds are allocated in 2026/27 this work may necessitate reprioritisation of the Capital and Renewal plans if more significant repairs are required.

The 2027/28 year includes funding for renewal of the concrete gravity pipelines within the Bell Island Wastewater Treatment Plant, however recent condition assessments indicate these pipes are deteriorating and renewal works may need to be accelerated as further investigations are completed.

General items are at the discretion of the General Manager.

10. THREE YEAR CAPITAL UPGRADE PLAN

The following table outlines the capital upgrades proposed over the next three years.

	Value ($k)
Activity	25/26	26/27	27/28
Bell Island Reuse	271	271	271
Best Island irrigation	1,944	542	1,983
Biosolids Pipeline and Equipment	884
Desludging ponds	542
Electrical upgrades		325	1,082
New plant and equipment	22	2,185	914
Reconnection of secondary rising mains	1,498
Secondary treatment system Upgrade		2,163	2,163
WWTP access and security	55	542
Total Per FY ($k)	5,216	6,665	7,490

Commentary on Upgrades for 2026/27

The new NRSBU Activity Management Plan (AMP) sets out a significant work programme to improve the performance of the NRSS. With the rising main duplication works completed the focus moves to improving the conveyance and treatment of the increased flows through the WWTP.

The 2026/27 programme includes upgrade works for the following:

· Continuation of pond desludging (to meet resource consents).

· Bell Island effluent reuse expansion.

· Earthworks and power relocation for Best Island irrigation.

· Design works for WWTP access improvements.

· Reconnection of secondary rising mains.

· Biosolids pipeline and equipment improvements.

Values are as per figures included in year 3 of the AMP and escalated to match inflation. The draft Business Plan 2026/27 also defers funding for the secondary system upgrade, whilst outcomes of the Taumata Arowai environmental performance standards for wastewater proposal is finalised.

Programmed work for the irrigation of treated wastewater on Best Island has been accelerated, along with improvements to the WWTP access. Planned CAPEX expenditure for 2026/27 is reduced slightly from the AMP.

11. FINANCIAL PLAN

Nelson Regional Sewerage Business Unit
Budget Summary
2026/27 to 2028/29
		Forecast	1	2	3
		25/26	26/27	27/28	28/29
Income
	Contributors	17,798	16,750	17,805	18,465
	Interest	0	0	0	0
	Other Recoveries	535	535	535	535

Total Income		18,333	17,285	18,340	19,000

Expenditure
	Operations & Maintenance	5,947	5,727	5,934	5,902
	Management	765	781	781	781
	Interest	2,844	2,563	3,073	3,680
	Insurance	537	547	562	574
	Depreciation	4,300	4,385	4,462	4,554

Total Operating Cost		14,392	14,002	14,811	15,490

Surplus/Deficit		3,941	3,283	3,528	3,510


Use of Funds
	Loan Repayment	1,908	1,393	537	1,136
	Renewals	2,392	2,992	3,925	3,418
	Owners Distribution	3,941	3,283	3,528	3,510
	Upgrades	6,802	5,216	6,665	7,725
	Land Purchase	0	0	0	0
		15,043	12,884	14,655	15,789

Sources of Funds
	Surplus/Deficit	3,941	3,283	3,528	3,510
	Depreciation	4,300	4,385	4,462	4,554
	New Loans	6,802	5,216	6,665	7,725
		15,043	12,884	14,655	15,789

Attachment 6.4.1

APPENDIX A: Nelson Regional Sewerage Business Unit Committee Activity Schedule 2026-2027

Date	Activity	Papers required
By 30 September 2026	Deliver annual report financial statement to Councils.	Annual Report and Financial Statement.
By 31 December 2026	Review board planning/meeting timetable. Adopt draft business plan for presentation to TDC and NCC. Review and update Interests Register. Adopt business continuity plan.	Planning/meeting timetable. 2027/28 draft Business Plan. Interests Register. Draft business continuity plan.
By 20 March 2027	Adopt final Business Plan for presentation to Tasman District Council and Nelson City Council.	2027/28 Business Plan.
By 30 June 2027	Review board performance Review governance policy. Review Demand Management Plan. Receive report on Contingency Plan review by customer representatives. Receive report on Risk Management review by customer representatives. Review customer satisfaction survey results. Annual review of Strategic Plan. Adopt Energy Conservation Plan. Review Audit Management Report. Annual Carbon Emission Review.	Checklist for committee effectiveness. Governance Policy. Draft Demand Management Plan. Report on Contingency Plan review by customer representatives. Report on Risk Management review by customer representatives. Customer survey report. Strategic plan. Energy Conservation Programme. Carbon Mission Measurement System development

APPENDIX B: Business Improvement Plan

This section describes initiatives to improve the efficiency and effectiveness of the Business Unit and is based on the Nelson Regional Sewerage Business Unit Strategic Plan and referenced to the 2024 Asset Management Plan.

IP	Description	Resource Requirements	Progress
IP-1	Consolidate all data and information; review and develop access method. Continue adding detail to the GIS system, and continue to try to get NCC to host the GIS pages with the increased detail. Ideally this will include links from this system to dashboards, asset information system (AWM) that will have been implemented.	In-house and consultants External consultants will need to work with NCC IT and GIS to host the new system Mainenance and development for the GIS and Asset Management system will remain by consultants.	July 23- 25 progress is expected to include all non-critical but significant assets to have specific assets with data and maintenance information accessible through this single system. Progress to the start of 2026/27 is that all critical and high importance assets should have been included in the AWM (Asset Works Manager) and GIS systems, and 2026/27 this will progress to less important assets
IP-2	Continue sludge removal programme (to be complete during early 27/28).	In-house and Contractor	On-going, Sludge Bund Consent granted 2019/20. Sludge containment area complete 2020/21 Desludging commenced – Pond F1 and F2 completed.
			Sludge containment area full. Alternative disposal option for F3 desludging required.
			Continue the development of alternative biosolids treatment and Disposal options, including pilot trials with a biosolids solar dryer.
IP-3	Review the long-term strategy (Master Plan) prior to the AMP process.	In-house and consultants	Draft submitted to the Joint Committee and consulted with iwi. Awaiting feedback from NCC and TDC. Have workshop with NRSBU Joint Committee on the Master Plan. Discuss the major issues, constraints, and the current thoughts on how these might be managed. Discuss the adaptive management process.

APPENDIX D: Focus on Community and Environmental Benefits

The NRSBU intends to:

· have facilities that are robust and resilient – focusing on collection and conveyance system, followed by Bell Island volumetric treatment capacity.

· reduce overflows into the coastal marine environment and Tasman Bay beyond

· have a greater focus on the immediate coastal marine environment and impacts on the ecology of Tasman Bay

· Develop a water reuse strategy and implement initial reuse actions using existing reuse water and expand as financial constraints allow reuse water volume and infrastructure.

· reduce the volume of wastewater discharged to Waimea Inlet over time

· Maintain focus on biodiversity and estuary health as priorities over the next two years.

· increase attention to facilitating cultural and recreational and educational activates where these don’t adversely affect core business activities.

To implement this vision, the NRSBU will:

· develop a programme of work to investigate and implement ways to reduce overflows from the sewerage pump stations to the estuary

· implement the conditions associated with the pump stations Aberrational Discharge resource consent

· further develop investigations into the potential re-use (by others) of treated wastewater and install additional pipework to convey treated wastewater to locations where it can be reused by others in the community (including use for irrigation and industrial processes.)

· investigate potential tree and vegetation planting around the perimeter of Bell Island, and where suitable undertake in conjunction with community groups such as Battle for the Banded Rail

· continue to operate the treatment plant well and achieve high quality effluent

· commission a high-level report into alternative wastewater treatment systems (that would avoid or significantly reduce the discharge of treated wastewater to the Waimea Inlet).

Nelson Regional Sewerag Business Unit 10 September 2025

Report Title: R25-419 Bell Island Designation

Report Author: Brad Nixon (Operations Manager Regional

Services)

Report Authoriser: Alec Louverdis (Deputy Chief Executive / Group

Manager Infrastructure)

Purpose of Report

1. To review and accept the recommended conditions for the designation of Bell Island.

Summary

2. The Nelson Regional Sewerage Business Unit (NRSBU) has issued a Notification of Requirement for the Designation of Bell Island.

3. Tasman District Council (TDC) - as the Territorial Authority for the Designation - has issued a set of recommended conditions.

4. Officers have worked with TDC to reach a set of agreeable conditions, these are presented in this report for acceptance by the NRSBU.

Recommendation

That the Nelson Regional Sewerage Business Unit

1. Confirms the Notification of Requirement for Bell Island, subject to the recommended condition set out in the Tasman District Council RM240388 Recommendation and addendum, as attached to Report R25-419.

Background and Discussion

5. NRSBU has been working to designate its facilities under the Resource Management Act (RMA), starting with the Bell Island Wastewater Treatment Plant (BIWWTP).

6. On the 3rd of May 2024 the NRSBU Joint Committee resolved to issue a Notification of Requirement (NOR) for Designation of the BIWWTP.

7. This NOR was sent to Tasman District Council (TDC), as the Territorial Authority.

8. The TDC provided a recommended condition to the Designation.

9. Officers did not agree with the recommendation, which would have resulted in the imposition of additional administrative burden and subsequent cost for completing works around the existing infrastructure at the BIWWTP.

10. Officers subsequently worked with TDC regulatory staff to resolve the issue and have agreed on a revised condition which ensures that appropriate environmental protections are put in place when working closer to sensitive areas around Bell Island but still permiting works to be effectively undertaken around existing infrastructure and heavily modified environments.The Designation recommendation is attached to this report and should be read in conjunction with the addendum which modifies condition 1 (see section 5.1 of the recommendation report).

Options

11. NRSBU can either accept the recommendation and addendum from TDC or reject the recommendation and addendum. Should the recommendation be rejected the NOR will form the basis of the Designation, and TDC (as the Territorial Authority) would need to appeal this to the Environment Court if it wished to impose the conditions included in the recommendation.

12. Officers support accepting the recommendation and addendum (option 1)

Option 1: Accept the recommendation and addendum from TDC

Advantages

· The designation process for Bell Island is completed.

· NRSBU is able to undertake most activities with no increase to administrative requirements from the NOR conditions.

· There is no risk of further procedural actions to resolve the Designation.

Risks and Disadvantages

· There is some administrative burden and cost increase to activities close to the Mean High Water Springs (MHWS) line, and activities with an earthworks area exceeding 1000m2, outside of the existing WWTP infrastructure.

Option 2: Reject the recommendation and addendum from TDC

Advantages

· The conditions included in the NOR stand.

· The administrative burden and cost is reduced for activities close to MHWS, or with an earthworks area exceeding 1000m2.

Risks and Disadvantages

· TDC could elect to appeal the NRSBUs decision to reject the recommendation to the Environment Court.

Important considerations for decision making

Fit with Purpose of Local Government

Consistency with Community Outcomes and Council Policy

Designation of Council infrastructure is a common practice, and helps provide certainty for service delivery to meet the goals of Long Term Plans.

Risk

It is considered likely that designation of NRSBU sites and land supporting NRSBU infrastructure will be successful.

In the event of an adverse outcome (i.e. designation is not successful) there will be no change from the current situation

Financial impact

With the exception of the immediate cost of preparation of the applications for designation, the outcome will be a reduction in the future costs of delivering capital improvements at the Bell Island WWTP.

Degree of significance and level of engagement

This matter is of low significance because designation of infrastructure sites is common practice. Engagement was undertaken with iwi as interested parties.

Climate Impact

Climate impact has not directly been accounted for in the preparation of this report, however there is no direct impact obviously associated with designation of sites. Future NRSS works which reduce climate impacts will benefit from reduced development costs, increasing feasibility and affordability.

Inclusion of Māori in the decision making process

No engagement with Māori has been undertaken in preparing this report, however Te Tau Ihu iwi have been consulted with during the development of the designation application for Bells Island. Iwi also have representation on the NRSBU Joint Committee.

To Requiring Authority – Nelson City Council Recommendation from Territorial Authority

Notice of Requirement applied for:

RM240388 Joint Notice of Requirement to designate the Bell Island Wastewater Treatment Plant for ‘wastewater treatment’ purposes.

Notification:

This joint notice of requirement (NOR) with Tasman District Council was issued on 24 June 2024.

A Tasman District Council staff report, prepared in accordance with the Resource Management Act 1991, recommended this NOR proceed without public notification or limited notification. The recommendation was accepted by an accredited and independent commissioner on 8 October 2024.

Purpose of Report:

This recommendation report is not the decision on the Notice of Requirement; it contains advice and recommendations from Katrina O’Conner, a planning consultant, and Leif Pigott, Team Leader – Natural Resources Consents, supported by Council specialists, having regard to the relevant provisions of Section 171(1) the Resource Management Act 1991.

It has been approved for release by Katrina Lee, Resource Consents Manager for Tasman District Council.

Action Required:

Under Section 171(2) of the Resource Management Act 1991, the Territorial Authority (in this case Tasman District Council) may recommend to the requiring authority that it:

(a) confirm the requirement:

(b) modify the requirement:

(d) withdraw the requirement.

In this case, the recommendation is to confirm the requirement with a condition.

Under Section 172 of the Act, the Requiring Authority shall decide whether it accepts or rejects the recommendation and shall advise the Territorial Authority of its decision.

RM240388 Bell Island WTP NOR Recommendation to Nelson City Council 11 November 2024

BELL ISLAND WASTEWATER TREATMENT PLANT NOTICE OF REQUIREMENT RECOMMENDATION REPORT

1 Purpose

1.1 The purpose of this report is to recommend that the Requiring Authority Nelson City Council confirm the joint NOR with conditions imposed, which will result in a Designation being added to the Tasman Resource Management Plan (TRMP).

2 Summary

2.1 The Nelson City Council (NCC) and Tasman District Council (TDC) have issued a NOR, pursuant to Sections 168 and 168A of the RMA, for a proposed designation of the site of the Bell Island Wastewater Treatment Plant (WTP). This WTP is operated on behalf of the two Councils by the Nelson Regional Sewerage Business Unit (NRSBU). Bell Island lies within Tasman District. Nelson city Council (NCC) is a “Requiring Authority” pursuant to section 166 of the RMA and is able to issue a Requirement pursuant to Section 168 of the RMA for public works.

2.2 The purpose of the proposed designation is given on the NOR as:

Wastewater treatment plant.

Wastewater treatment includes but is not limited to:

· Clarifiers

· Sludge basins

· Handling tanks

· Oxidation ponds

· Track / road formation

· Reticulation networks

· Energy harvesting for NRSBU use (e.g. solar power)

· Irrigation facilities

· Ancillary buildings and structures

· Maintenance and upgrades.

2.3 It is noted that a designation is only relevant to district plan matters and any regional matters such as discharge to air and water will still require the relevant resource consent.

RM240388 Bell Island WTP NOR Recommendation to Nelson City Council 11 November 2024

2.4 The notification decision for this NOR was delegated to an accredited independent commissioner, Craig Welsh. The notification decision was signed off on 8 October 2024 for the Requirement to proceed on a non-notified basis.

2.5 A decision is now required on the NOR. The Operations Committee of Tasman District Council has the delegated authority to make this decision, and on 7 November 2024 it confirmed the NOR with a condition imposed.

2.6 It is recommended that NCC confirm the designation, subject to the recommended condition in Section 5 of this report, for the reasons outlined below.

3 Recommendation

3.1 That Nelson City Council as Requiring Authority:

1) confirms this Notice of Requirement under section 172 of the Resource Management Act 1991, subject to the recommended condition contained in Section 5 of this report.

4 Notice of Requirement Summary

4.1 Nelson City Council and Tasman District Council (the Requiring Authority) have submitted a joint Notice of Requirement for a designation for “Wastewater Treatment Plant” at Bell Island. Both Councils are “Requiring Authorities” pursuant to section 166 of the RMA. This WTP is operated on behalf of the two Councils by the Nelson Regional Sewerage Business Unit (NRSBU).

4.2 The public work on this site is existing and this application is for a designation for the existing wastewater treatment plant.

4.3 The property is currently zoned Rural Industrial under the TRMP, and is within Land Disturbance Area 1, the Coastal Environment Overlay and the Natural Ecosystem Values (Waimea Inlet).

4.4 Currently permitted activities under the Rural Industrial Zone are:

The land use is any one or more of the following activities on the land shown on the planning maps as the Bell Island Rural Industrial Zone:

(i) Sewage treatment plants, oxidation ponds, settlement ponds.

(ii) Land disposal of liquid and solid waste originating from the permitted activities stated in item (i) of this condition. (Subject to other statutory rights and applications.)

(iii) One single unit dwelling for a plant operator’s residence.

(iv) Buildings (excluding dwellings other than specified in item (iii) of this condition) and structures ancillary to any permitted activity.

RM240388 Bell Island WTP NOR Recommendation to Nelson City Council 11 November 2024

(v) Farming, provided that the efficient and effective operation of the oxidation ponds is not threatened.

(vi) Telecommunication and radio-communication facilities.

4.5 In addition, various rules in Chapters 16 and 18 in Part 2 of the TRMP apply to the site, in particular rule 16.13.6 cultural heritage sites, rule 18.5.2 Land Disturbance Area 1 (earthworks, recontouring, land disturbance) and rule 18.11 coast environment area (buildings). The latter two of these rules have required the land use consents noted above. The site is identified as a HAIL site due to its use as a WTP. The NOR seeks to continue this use via designation.

Notification

4.6 A decision on notification was made on 8 October 2024 under delegated authority by an accredited independent commissioner. This decision was to process the NOR on a non-notified basis.

Requiring Authority Status

4.7 Nelson City Council has the legal status of a Requiring Authority and is able to issue a Requirement pursuant to Section 168A of the Resource Management Act 1991 for its proposed.

Section 171 Considerations

(1A) When considering a requirement and any submissions received, a territorial authority must not have regard to trade competition or the effects of trade competition.

(1) When considering a requirement and any submissions received, a territorial authority must, subject to Part 2, consider the effects on the environment of allowing the requirement, having particular regard to—

(a) any relevant provisions of—

(i) a national policy statement:

(ii) a New Zealand coastal policy statement:

(iii) a regional policy statement or proposed regional policy statement:

(iv) a plan or proposed plan; and

(b) whether adequate consideration has been given to alternative sites, routes, or methods of undertaking the work if—

(i) the requiring authority does not have an interest in the land sufficient for undertaking the work; or

(ii) it is likely that the work will have a significant adverse effect on the environment; and

(c) whether the work and designation are reasonably necessary for achieving the objectives of the requiring authority for which the designation is sought; and

(d) any other matter the territorial authority considers reasonably necessary in order to make a decision on the requirement.

RM240388 Bell Island WTP NOR Recommendation to Nelson City Council 11 November 2024

(1A) The effects to be considered under subsection (3) may include any positive effects on the environment to offset or compensate for any adverse effects on the environment that will or may result from the activity enabled by the requirement, as long as those effects result from measures proposed or agreed to by the requiring authority.

4.8 The Notice of Requirement has been assessed against Section 171 of the Act and the above recommendation is made for the following reasons:

Effects on the Environment

Activities Currently Permitted under the TRMP

4.9 The permitted rules of the subject site are noted above, and any effects of these permitted activities will not be taken into account in this assessment as these activities can happen now without a resource consent. The proposed designation would include a range of activities that are currently permitted under the TRMP. The possible exception to this is the activity noted as ‘energy harvesting’ which is discussed below. The NOR has referenced correspondence that energy harvesting is to be ancillary to the existing activity and has included the example of solar power for buildings. The current permitted activities include ancillary buildings and structures. Solar panels are ancillary structures. It could be argued that the proposed energy harvesting structures were ancillary to the permitted activity of the WTP currently. Nonetheless the effects of the energy harvesting structures are discussed further below.

4.10 The NOR notes solar energy harvesting as part of the designation to provide power to the treatment plant. It is understood that there is a further proposal for a solar farm on this property but that is a separate application and is not ancillary to the WTP. The designation would cover only energy harvesting to provide power for the treatment plant (i.e. solar panels).

4.11 The Requiring Authorities’ representative notes that solar panels will likely be either on the roof of the existing buildings or floating on the ponds or in buildings that would be similar to permitted buildings on site. Current permitted activities on this site include “buildings and structures ancillary to any permitted activity.” This means that solar panels and other structures to operate the WTP and/or managers residence could be placed on site as a permitted activity currently.

4.12 Discussions with NRSBU staff have bought up the possibility of wastewater processing changing to anaerobic processes and capturing and using methane gas to power the plant. This would require a discharge to air permit and further assessment beyond the application for this designation. To ensure that the designation is clear in terms of what energy harvesting means a condition could be placed on the designation defining this. The NOR itself does not mention methane gas use.

RM240388 Bell Island WTP NOR Recommendation to Nelson City Council 11 November 2024

Visual Effects

4.13 The application for the NOR includes the following visual assessment in the AEE:

The Bell Island WWTP is located in a coastal environment and is surrounded by the Waimea Estuary. The island is highly modified having been adapted for wastewater treatment purposes in the early 1980s. The site has long been used for wastewater treatment purposes and the WWTP is now an established part of the landscape. A combination of flat topography, intervening foreshore vegetation and restricted public access mean that visibility of the facility from public viewpoints is extremely limited.

The visual catchment for the treatment plant is largely limited to a residential enclave on the southern tip of Best Island which lies approximately 750m south- west of the plant. Dwellings located on the eastern fringe of that settlement have seaward views which look across the estuary towards the treatment plant. The treatment plant is now an accepted part of those coastal views, with its visual impact mitigated in part by a combination of intervening distance, foreshore vegetation (on both islands) and generally low-lying development, such as the treatment ponds.

Beyond Best Island, the treatment plant is only publicly visible from the estuary itself or from distant locations on the Tasman / Nelson coast. At those distances, it would be difficult to distinguish Bell Island from the backdrop of other islands within the Waimea Estuary and visibility of plant equipment would be difficult to the naked eye.

4.14 This assessment is accepted. For the above-listed reasons, the designation will maintain the status quo with respect to landscape and visual amenity values.

Noise Effects

4.15 The nearest dwelling is over 750m from the site and no noise complaints have been received regarding the operation at the site. The NOR notes that activities associated with wastewater treatment do not generate high levels of noise. In addition, the relevant noise levels in the TRMP will continue to be applicable to this site. Any new activities proposed on the site in the future would be subject to an Outline Plan process in accordance with s176A of the RMA, and this would detail how any potential noise effects from that activity would be managed to be within the permitted noise limits. The NOR notes that the designation will maintain the status quo.

Traffic Effects

4.16 The access to Bell Island is through a gated entrance with no public access. The access onto the island is via a causeway that can be submerged at high tide. The NOR notes that there is currently an average of 28 vehicle movements per day, including around 2 heavy commercial. Because of the causeway trip

RM240388 Bell Island WTP NOR Recommendation to Nelson City Council 11 November 2024

movements are limited and are on a as needs basis. The NOR notes that “trip generation to and from the site is limited due to the automated nature of the site and the inundation of the causeway at high tides. Contractors and staff visit the site on an as-needs basis for maintenance, operation and monitoring. Trip generation from the WWTP is well within the operational capacity of the network and is not expected to change as a result of designating the site. No persons are considered to be adversely affected by traffic or access effects.”

4.17 The assessment of traffic effects is accepted.

Natural Hazards

4.18 The site is an island surrounded by the Waimea Inlet and is low lying in parts. It is noted that a resource consent has been granted in 2020 for the construction of a bund to protect some low-lying areas of the site with the view to protect the facilities for the predicted sea level rise in this area. The site is currently subject to the effects of sea level and any work required to avoid effects on the assets will be the subject of a separate resource consent process or outline plan process. The proposed designation will not cause or exacerbate any natural hazards beyond what could happen as a permitted activity in the current zone.

Archaeological Effects

4.19 There are several archaeological sites on the island that have been identified and marked, and they are listed in the TMRP. The NOR notes that the middle part of the island is highly modified due to the development of the ponds and associated facilities. Any further development would be subject to the Heritage New Zealand Pouhere Taonga Act 2014 (HNZPT), which requires specific protocols around the discovery of archaeological sites. The designation of Bell Island has no effect on the requiring authority’s obligations under the HNZPT. Under a designation, additional sludge, oxidation or clarification ponds would, be able to be installed by way of an Outline Plan for the works (per Section 176A of the RMA). This is like what is permitted under the current zoning. With a designation the Requiring Authority would need to submit an Outline Plan for proposed works which would allow the opportunity for assessment and requirements for mitigation or avoidance of adverse effects. The designation does not affect the requiring authorities’ obligations under other acts such as the HNZPT. A recommended condition of this NOR is that any works in the Coastal Environment Area include a construction management plan that takes into account the effects on archaeological heritage discoveries to ensure future works include measures to mitigate any adverse effects on archaeological sites (known or unknown).

4.20 Given this, the effects on archaeological features and values are considered to be less than minor.

RM240388 Bell Island WTP NOR Recommendation to Nelson City Council 11 November 2024

Effects on Cultural Values

4.21 In terms of cultural values these include archaeological sites and the effects on those have been discussed above. The applicant has consulted with iwi in regard to this proposal and the main issue raised by iwi in terms of cultural significance is that the wastewater plant discharges to the sea. The proposed designation will not change any discharge permits with the existing discharge consents and conditions still having to be adhered to and to be reapplied for when they expire. The effects from energy harvesting are also unlikely to affect cultural values to an extent that is minor or more than minor as this is likely to be solar panels and other such equipment built within the existing developed

site. As the designation is mostly covering things that are already permitted by the zoning the effects (as discussed above), is still subject to the HNZPT for archaeological sites, has a condition that any works in the Coastal Environment Area include a construction management plan that takes into account the effects on cultural heritage and does not make any change in terms of discharge.

4.22 The effects in terms of cultural values are considered to be less than minor.

Land Disturbance Effects

4.23 The proposed designation includes road and track formations and reticulation networks (piping) that could include land disturbance. The majority of these facilities have already been established to run the WTP. Any further development of these facilities on land under the designation will have less than minor effects as the site is already highly modified.

4.24 It is understood that construction of these facilities within the coastal marine area would require a regional consent under the TRMP. The site currently has a resource consent for the construction of a bund from waste materials which includes an earthworks component.

Ecological effects

4.25 Waimea Inlet, including part of the Site, is a large (3,462 hectare), shallow, well- flushed, tidal lagoon type estuary with high ecological and human use values. The inlet receives freshwater inputs from Waimea River and several smaller tributaries and discharges to Tasman Bay via tidal entrances at either end of Rabbit Island.

4.26 The Inlet plays a significant role in the integration of terrestrial and coastal marine ecosystems by, for example, providing critical habitat for a variety of plant and animal species, maintaining coastal productivity, and nourishing the marine food web. High value is placed on the Inlet’s terrestrial-wetland coastal aquatic continuum as habitat for wildlife, fish and invertebrates, and its complex, heterogeneous physical and biological structure. The inlet has also been

RM240388 Bell Island WTP NOR Recommendation to Nelson City Council 11 November 2024

assessed by the Department of Conservation as meeting the criteria for a wetland of international importance.

4.27 The Inlet is listed in Schedule 25D of the TRMP as an area with nationally significant natural ecosystem values. These values include the Inlet’s status as the largest barrier enclosed estuary in the South Island, and one of only two sites where the endangered peppercress plant has been recorded. The Inlet is considered to be of outstanding importance for waders and provides habitat for the endangered grey saltbush, white heron, royal spoonbill, Australasian bittern and banded rail.

4.28 Key issue is the wording “avoid adverse effects” in Policy 11 of the NZCPS 2010. This is a high test, but given the wastewater treatment plant is existing and that occupying the island effectively provides a haven for bird life by limiting public access and the subsequent interactions with dogs etc.

4.29 A condition is recommended on the NOR to ensure any works in the more vulnerable coastal area that is not already occupied by wastewater assets includes a construction management plan that takes into account the effects on estuarine wildlife to ensure future works mitigate any adverse effects. Given this the NOR will not create additional effects from those that currently exist through the permitted activities in this zone.

Positive Effects

4.30 Section 4.1 of the Assessment of the Effects on the Environment (AEE) to support the NOR outlines the positive effects of designating the site. I accept this assessment and adopt it in my recommendation.

Trade Competition

4.31 In accordance with Section 168A(2A) of the Act, neither trade competition nor the effects of trade competition were had regard to in this assessment.

Policy Statements and Plan Provisions

4.32 Regard was had to the relevant provisions of the following planning documents:

(a) National Environmental Standard: Contaminated Soil (NESCS);

(b) the New Zealand Coastal Policy Statement (NZCPS);

(d) the Tasman Resource Management Plan (TRMP).

4.33 The Requirement is not contrary to any National Policy Statement.

RM240388 Bell Island WTP NOR Recommendation to Nelson City Council 11 November 2024

4.34 The wastewater plant has existing discharge consents, and the proposed designation will not change these consents, or the conditions that must be met under these discharge consents.

4.35 The site is not considered Highly Productive Land, and the National Policy Statement for Highly Productive Land is not relevant to the proposal.

4.36 The proposal is within the coastal environment and therefore is subject to the NZCPS. The key objectives and policies in the New Zealand Coastal Policy Statement (NZCPS) that are relevant to this application are Objectives 1,2,5 and 6 and Policies 2, 4, 6, 11, 14, 15, 24, 25 and 27. The proposal is to create a designation over an existing wastewater facility, and it recognises the natural characteristics of the area by proposing the designation over the existing zoning of Rural Industrial. This enables the community to provide for their wellbeing through the continued use of an existing facility with existing rural industrial characteristics. The proposal does not change discharge consents that are in place and the requirements of these consents will continue to need to be

met. To provide for integrated management of the coastal area a condition is recommended for this designation that requires a construction management plan when works are within the Coastal Environment Area. This is taking a precautionary approach to managing the coastal area of the site. This decision takes into consideration the rate at which built development, and the associated public infrastructure should be enabled to provide for the reasonably foreseeable needs of population growth without compromising the other values of the coastal environment. Given the above the application is not inconsistent with the NZCPS 2010.

4.37 The proposal is consistent with the existing rural industrial use of the site and providing for the continued use of a regional asset. It recognises the needs to provide for the wastewater plant which is already operating in an area zoned Rural Industrial in the TMRP. The proposal takes into account the effects on the surrounding area and the proposed condition will add an extra layer of caution for the coastal area. The proposal is therefore considered to be consistent with these objectives and policies of the TRMP.

4.38 The site is a Hail site, as such the NESCS will apply to this site. Section 43D of the RMA considers the relationship between national environmental standards and designations. Section 43D(4) states “a national environmental standard that exists when a designation is made prevails over the designation”. Any significant earthworks will require assessing under this NESCS and may require a consent that will refer to a site management plan. These site management plans are generally detailed construction management type plans and should minimise the effects of earthworks on the environment.

RM240388 Bell Island WTP NOR Recommendation to Nelson City Council 11 November 2024

Alternatives

4.39 The RMA requires consideration of alternatives where the Requiring Authority (in this case the Tasman District Council) does not have an interest in the land, or where the effects are significant (Section 168A(3)(b).

4.40 In this proposal, the wastewater plant is existing and has existed in this location for a number of years, and the effects of the proposal have been assessed as being less than minor. The Requiring Authority is therefore not required to assess alternatives.

Positive effects for offsetting or compensation

4.41 The nature of the effects associated with the activity are such that offsetting and compensation are not required, and this section is not relevant.

Objectives of the Requiring Authority

4.42 The NRSBU is a requiring authority under section 166 of the RMA being an operational business unit of the Tasman District Council (TDC) and Nelson City Council (NCC). The NRSBU has financial responsibility for operating, maintaining, and upgrading Nelson and Tasman’s wastewater infrastructure, as well as the ability to designate for such works. The objectives with respect to wastewater are detailed in the NRSBU’s 2024-2034 Wastewater Activity Management Plan. The strategic objectives include:

• Containment and conveyance that is resilient and minimises adverse impacts on the health of the environment and community.

• Resilient wastewater treatment that minimises the impact on the environment and community.

• Long term vision that considers the future needs of the community.

• Alternative methods of biosolids disposal that protect public health and the environment and are sensitive to cultural values.

• Use of ongoing improvement processes to identify, implement, and operate feasible biosolids reuse.

• Identify implement and operate feasible systems and infrastructure for the reuse of wastewater.

4.43 Designating the Bell Island WWTP will provide the NRSBU (and therefore TDC and NCC) with certainty with respect to being able to undertake land use activities which are essential for the purpose of wastewater management. In addition to supporting a long-term vision for the NRSBU and protecting a critical community asset, the designation will also mean that the NRSBU is appropriately consulted if third party development has the potential to affect designation activities or infrastructure. The proposed designation supports the above listed

RM240388 Bell Island WTP NOR Recommendation to Nelson City Council 11 November 2024

objectives by enabling the future wastewater needs of the community to be more appropriately and efficiently accommodated.

Other Matters

4.44 There are no other matters that are reasonably necessary to make a recommendation or decision.

Part II Matters

4.45 In considering this Notice of Requirement, I have taken into account the relevant principles outlined in Sections 6, 7, and 8 of the Act, as well as the overall purpose of the Act as presented in Section 5. The sustainable management of natural and physical resources will be achieved.

Lapse Period

4.46 The Requiring Authority has considered the standard lapse period of 5 years adequate for this designation.

5 Recommended Condition

5.1 It is recommended that the following condition be imposed:

1. Any works within areas currently not occupied by wastewater assets (undisturbed areas) within the coastal environment area (CEA), shall be undertaken in accordance with a construction management plan (CMP) prepared by a suitably qualified professional. The CMP must include, but is not limited to, measures to specifically manage (ie. Avoid where possible, minimise, or offset) adverse effects on/from:

a) Estuarine wildlife.

b) Archaeological or cultural heritage discoveries.

c) Erosion and sedimentation.

Advice note:

The site is a hail site and the National Environmental Standard for Assessing and Managing Contaminants in Soil to Protect Human Health (NESCS) applies to any earthworks.

6 Land Requirement

6.1 The land requirement is shown on the aerial photo image below (on page 13).

RM240388 Bell Island WTP NOR Recommendation to Nelson City Council 11 November 2024

Attachment 6.5.2

ADDENDUM to Report:

RM240388 S171 Recommendation to Requiring Authority Nelson City Council dated 11 November 2024

Re Bell Island Wastewater Treatment Plant - Notice of Requirement

Acceptance of Modifications to Recommended Condition

We have considered your alternative proposed wording for the condition on this designation and accept the modified condition wording as follows, to be accompanied with the image you supplied on 12 June for the existing footprint (see snip below).

Modified Condition on Designation RM240388

1. A Construction Management Plan (CMP) shall be prepared by a suitably qualified person for earthworks:

a. Outside of the footprint (both above and below ground) of the existing wastewater treatment plant and onsite infrastructure (as depicted on the attached image); and

b. If within 10m from the line of MHWS and exceeding 10m2; or

c. If more than 10m from the line of MHWS and exceeding 1000m2

2. The CMP must include, but is not limited to, measures to address any identified adverse effects of the earthworks identified in condition [1] on indigenous estuarine wildlife, archaeological or cultural heritage discoveries, or erosion and sedimentation.

3. Earthworks captured by condition [1] must be undertaken in accordance with the CMP.

Advice note:

The site is a HAIL site and the National Environmental Standard for Assessing and Managing Contaminants in Soil to Protect Human Health (NESCS) prevails over this designation and applies to the site. Refer to resource consent RM220331.

Reason: The 1000m2 limit is one of the conditions in the TRMP Permitted Activity rules for earthworks within 200m from the coastal marine area (MHWS), so it is an accepted trigger and will be similar in this context re the scale of the potential effects that the required CMP is intended to manage.

The advice note has also been amended to include the explanation that the NESCS prevails over the designation, which is why we consider this advice note is necessary for future

reference.

When Nelson City Council issues its decision under Section 172 RMA, we will modify the condition in the Tasman District Council decision by way of a minor amendment, so that the wording matches in both decisions for this joint designation.

Date:	10 September 2025
Time:	9:30 AM
Location:	Council Chamber, Floor 2A, Civic House, 110 Trafalgar Street, Nelson

1 Apologies

2 Confirmation Of Order Of Business

3 Interests

4 Public Forum

5 Confirmation Of Minutes

Nelson Regional Sewerage

ANNUAL REPORT 2024/25

NRSBU Annual Report 2024/25

Contents

NELSON REGIONAL SEWERAGE BUSINESS UNIT

Purpose of Report

Summary

Recommendation

Background and Discussion

Options

Conclusion and next steps

Attachments

Attachments

Business Plan 2026/27

NRSBU Business Plan 2026-27

Contents

Purpose of Report

Summary

Recommendation

Background and Discussion

Options

Conclusion and next steps

Attachments

To Requiring Authority – Nelson City Council Recommendation from Territorial Authority

1 Purpose

2 Summary

3 Recommendation

4 Notice of Requirement Summary

Notification

Requiring Authority Status

Section 171 Considerations

Effects on the Environment

Activities Currently Permitted under the TRMP

Visual Effects

Noise Effects

Traffic Effects

Natural Hazards

Archaeological Effects

Effects on Cultural Values

Land Disturbance Effects

Ecological effects

Positive Effects

Trade Competition

Policy Statements and Plan Provisions

Alternatives

Positive effects for offsetting or compensation

Objectives of the Requiring Authority

Other Matters

Part II Matters

Lapse Period

5 Recommended Condition

6 Land Requirement