Proposal for a Regional Landfill Business Unit

coverThis proposal was adopted in 2016. This page remains in place as an archive of the consultation.

A consultation document for an amendment to the Long Term Plan 2015-2025

This page provides background information on the proposal to develop a joint landfill with Nelson City Council - everyone is welcome to send feedback.

What Happens Next?

Submissions closed on Friday 5 August 2016. Your submissions will now be considered by Council, with hearings later in August and decisions on the amendment to Council’s Long Term Plan 2015-2025 finalised in September 2016.

Feedback closed: 4.00pm, 5 August 2016

A Message to Tasman's Residents and Ratepayers

phot

We’ve recently been talking to you about a joint solid waste arrangement with Nelson City Council through the Annual Plan 2016/2017 and Long Term Plan 2015-2025 processes. We’re now at the stage of formally proposing an amendment to our Long Term Plan (our 10-year Plan for 2015-2025).

We are proposing the amendment so that we can jointly share control of the Eves Valley landfill with Nelson City Council. In return Tasman District Council gets a reciprocal share in the control of the York Valley landfill. The proposal is to create a Regional Landfill Business Unit (RLBU) controlled by a joint committee of the two Councils.

We’re consulting because this proposed arrangement is different to what is contained in the current Long Term Plan 2015-2025 and the Eves Valley landfill is a strategic asset of Council. While similar in nature to the earlier proposal, we’re changing how the landfill would be governed and how much we spend.

We’re making the change because between 2025-2045 there is a capital saving of approximately $11 million if we proceed with the RLBU. In the short-term, the capital costs of the proposal are relatively neutral when compared to our existing Long Term Plan because the large capital costs for Eve’s Valley landfill (estimated at $48 million) do not start until 2027 – outside our ten-year plan.

The existing Long Term Plan is based on an earlier arrangement with Nelson City Council, but this has proved unworkable. We are now looking at a different joint arrangement or alternatively, we could ‘go it alone’. If we‘go it alone’ we will incur large capital costs (approximately $40 million) much earlier when compared with the other options, but we retain full control of the asset.

Joining up with Nelson means our future capital costs for establishing Eves Valley landfill (Stage 3) will be halved and both Councils will have greater long-term security for waste management. We also see environmental benefits through a joint approach to waste minimisation; and benefits from greater reliability of income and    expenditure.

We’ve developed a proposal with Nelson City Council that is very similar to the governance and funding structures of Nelson Regional Sewerage Business Unit (NRSBU). The NRSBU has been a successful model for joint collaboration between the two Councils for over 15 years.

Along with the transfer of control, we’re planning on making a one-off $4.2 million payment to Nelson to recognise the difference in value of the two landfills. It means both Councils will have an equal interest and equal say in the regional landfill facilities in the future.

This document provides a summary of the proposal to establish a Regional Landfill Business Unit (RLBU), looks at alternative options, and sets out the implications of the preferred proposal on rates, debt and levels of service. It also explains some of the consequential changes to the Infrastructure Strategy and Financial Strategy.

It’s important to note that, to meet our statutory requirements, the amendment is to the words and financial information in the Long Term Plan 2015-2015. That Plan was adopted in June 2015. Since then we have made significant improvements to Council’s debt position and overall performance.

We encourage you to read this Consultation Document to find out more about what we are proposing, and how it may affect you. You can let us know what you think of our proposal up until Friday 5 August 2016.

Richard Kempthorne and Lindsay McKenzie

 Back to Top

Why are we Consulting on an Amendment to Our Long Term Plan 2015-2025?

The Eves Valley landfill is located west of Brightwater and every year receives around 29,000 tonnes of waste mostly from Tasman district. It is our only operating landfill.

The landfill is listed as one of our Strategic Assets in our Significance and Engagement Policy. This means we are committed to engage with our community if we want to make any significant decisions about the Eves Valley landfill.

Our current landfill (Stage 2) is almost at capacity and we would need to invest significant capital in Stage 3 if we wish to operate on this site beyond 2019. Instead, we are proposing to send our waste to the York Valley landfill and to transfer 50% of our control to a joint committee of the two Councils. The joint committee will control both the York Valley and Eves Valley landfills.

The Local Government Act 2002 requires decisions relating to the transfer of control of a Strategic Asset to be included in the Long Term Plan. Consequently, we are amending our Long Term Plan 2015-2025 to reflect the transfer of control, and are seeking public feedback on this proposal.

Back to Top

Information Sessions - 11, 12 and 26 July

You can come and ask questions or find out more about the proposal at the public ‘drop-in session’ on 11 July 2016 at Richmond Council Offices (189 Queen St) from 5.30 pm–7.00 pm.

We will also be presenting information to the Motueka Community Board on 26 July and Golden Bay Community Board on 12 July (the meetings begin at 4.00 pm and 9.00 am respectively, and agendas outlining the times for each item are published on our website ).

Section 4 of the Consultation Document sets out the list of supporting documents. These supporting documents include relevant Council reports, financial information and Long Term Plan documents such as the Infrastructure and Financial Strategies. This supporting information is available to view or download from our website (www.tasman.govt.nz/feedback), or view copies at any of the district libraries and service centres. Alternatively, contact us on info@tasman.govt.nz, or phone your local Council office for more information.

 Back to Top

What will a Joint Solid Waste Arrangement Look Like?

Here's What you will see if we have a joint Solid Waste Arrangement with Nelson City Council

Waste Management

Solid waste that previously went to Eves Valley landfill (located to the west of the Waimea Plains) will go to York Valley landfill (located near Bishopdale). We anticipate Eves Valley landfill will be held ‘in reserve and at the ready’ until it is needed at a future date or in the event of an emergency. Decisions on the timing and use of both landfills will be made by the joint committee, but at the moment we estimate we’ll need to re-open Eves Valley in 2031.

Capital Expenditure

Under the proposed amendment we expect to share $0.9 million of capital expenditure with Nelson City Council over the next 8 years. Over the following 20 years we expect to share $48 million of capital expenditure on establishing a regional landfill at Eves Valley and approximately $1.4 million at York Valley landfill when it closes.

When compared with the Long Term Plan 2015-2025 this represents an increase in capital expenditure of $0.2 million in the next 8 years; and a decrease of $11 million in the following 20 years.

Debt

We will pay Nelson City Council $4.2 million dollars to recognise the difference in landfill values, which in turn enables all future costs and surpluses to be equally allocated. We have an existing surplus in our Solid Waste account which means we can release $500,000 towards this sum and borrow $3.7 million in 2017/2018 to make this payment.

Rates

The General Rate, which is applied to all properties, is likely to increase by approximately $6.91 (including GST) per household* in 2017/2018. The rate increase is primarily driven by the need to service the $3.7 million payment to Nelson City Council. *Based on a “typical urban property” with a value of $510,000.

Governance

A joint committee will provide oversight and direction for the newly established Regional Landfill Business Unit (RLBU). Each Council will contribute an equal number of appointed members to the Committee. Two further roles are likely to be available for an independent person and iwi representative. The two Councils will still own their respective landfills, but each Council will have equal control over the Eves Valley and York Valley landfills.

The joint committee will make all future decisions about the operational aspects of each landfill, including when to open or close them. It will need to consult, like Council, on setting fees, its plans for capital expenditure and income through the Long Term Plan and Activity Management Plans. The RLBU will be accountable through the Annual Reports of both Councils.

Levels of Service

For most residents and businesses there will be no noticeable change to how each Council delivers solid waste services. Council’s kerbside rubbish and recycling collections will continue unchanged. The resource recovery centres will also continue to operate, accepting commercial and domestic waste and recycling.

Back to Top

Make a Submission

You can make a submission online or download and return the submission form.

What Happens Next?

Submissions must be received by Council by 4.00 pm, Friday 5 August 2016. Your submission will be considered by Council, with hearings in August and decisions on the amendment to Council’s Long Term Plan 2015-2025 finalised in September 2016.

Back to Top

 Documents

Consultation Document - Proposal for a Regional Landfill Business Unit Supporting Information 1 - Financial Supporting Information 2 - Implications for the Infrastructure Strategy Supporting Information 3 - Draft Infrastructure Strategy - Amended Pages Supporting Information 4 - Draft Financial Strategy - Amended Pages Supporting Information 5 - Draft Long Term Plan Volume 1 - Amended Pages

Related Links

Back to Top