WASTE MANAGEMENT SERVICES ACTIVITY MANAGEMENT PLAN

Transcription

1 WASTE MANAGEMENT SERVICES ACTIVITY MANAGEMENT PLAN NOVEMBER 2017

2 DOCUMENT PREPARATION & QUALITY ASSURANCE Prepared By Reviewed By Peer Reviewed by NAME Cushla Anich and Alice Grace Senior Consultant Morrison Low Luke Knight Property Manager, Wairoa District Council N/A DATE November 2017 November 2017 Document Approved Jamie Cox November 2017 Engineering Manager, Wairoa District Council Adopted by Council Resolution 2018/54 September 2018 UPDATE REGISTER VERSION DATE UPDATE DESCRIPTION UPDATED BY

3 EXECUTIVE SUMMARY INTRODUCTION WAIROA The primary purpose of the Waste Management Activity is to support the following key functions and services: The provision and operation of the Wairoa District Council s (Council) waste management strategy. The maintenance of the landfill assets including the landfill, recycling centre, rural recycling drop off points and weighbridge. Provision of a domestic waste and recycling collection service. Aftercare of closed landfills. The Activity Management Plan (AMP) is a tactical plan that gives effect to a range of other strategic and tactical planning documents including Council s strategic direction and Long Term Plan (LTP). The focus of this AMP is for Council owned waste management assets. This plan signals a step change for Council to a more a proactive approach to managing the waste management activity. This Waste Management Services AMP is an update of the 2015 Waste Management AMP. While being asset related this AMP details the services to the end user or customer, and deals with the sustainability of the operation of Council s waste management assets. LEVELS OF SERVICE Council aims to provide and support the waste management services and assets in the District to deliver the levels of service in a sustainable manner over the long term. Council recognises that there is a wide range of customers and stakeholders with an interest in how the waste in the District is managed. The community are interested in a safe, reliable and responsive service which considers the impact of the activity on their environment. The levels of service for waste management are outlined in Section 2 of this AMP and summarised in Table ES1. Table ES1: Service level summary for waste management KEY SERVICE ATTRIBUTE SAFETY AVAILABILITY RESPONSIVENESS ENVIRONMENTAL SUSTAINABILITY LEVELS OF SERVICE Provide safe and reliable refuse and recycling kerbside collection services and rural waste services Provide the Wairoa Landfill for safe waste disposal Provide prompt responses for service Effects on the natural environment are minimised Council facilitates waste minimisation practices and promotes reduction of the amount of waste going to landfill DEMAND The Wairoa District has been slowly declining in terms of population from 10,200 in 1996 to estimated resident population of 8,150 in This steady decline in population is not expected to continue. The resident Maori population in the District accounts for about 60 per cent of the total population. A declining population base combined with actively encouraging waste diversion is likely to put pressure on the affordability and sustainability of the landfill operation, due to the fixed operating costs. The communities ability to continue funding the activity and, in particular, maintain the assets over time, is an area of concern and losing the ability to sustain a local landfill could impact negatively on the future local environment and economy. With significant capacity remaining at the landfill, this has led to discussions around the future of the service in Wairoa and options such as accepting waste from outside the District. Economic benefits, should collaboration with Gisborne District Council proceed, would include: WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN i

4 reduced rates impact (charges would remain static or increase to incentivise diversion and as a result increased levies) increased revenue. ASSET DESCRIPTION Key assets associated with the Waste Management Activity include the Wairoa Landfill and five closed landfills. The landfill is located on Fraser Street in the Wairoa township. Council owns the land that the facility is located on. The waste management assets are considered fit for purpose in terms of capacity and usage. Additional assets at the landfill include: landfill cell and tipping wall weighbridge and office leachate and drainage systems recycling building with sorting and storage area with canopy cover staff facilities including toilet and washroom. RISK MANAGEMENT Risk management is an inherent part of Council s overall management philosophy and is incorporated into all infrastructure practices. Risk is managed through development and on-going review of activity risk assessments, as well as through emergency response planning, contingency planning, routine monitoring and maintenance response. The activity review as part of the development of the AMP identified the following highest risks: fire damage to property specifically neighbouring Council owned forestry block public or personnel incident resulting in ill health, injury or death cost of landfill operation becomes unaffordable consent breach at Wairoa Landfill due to leachate overload. LIFECYCLE MANAGEMENT PLAN The Waste Management Activity is managed in house by Council staff for both the strategic and operational aspects. Physical works, including the operation and maintenance of the landfill and the domestic waste and recycling collection service, are undertaken by external Contractors. Operation of the landfill and provision of the domestic waste and recycle collection is undertaken by contractors who are responsible for: operating the landfill for the specified times maintaining the landfill to comply with resource consent conditions domestic waste and recycling collection from Wairoa, Frasertown and Mahia identifying suitable markets for recyclables. Contractors are also responsible for activities involving the district s closed landfills including site inspections and fault repairs. FINANCIAL SUMMARY The total amount of expenditure for operations and maintenance and capital over the next ten years is $15.4 million as shown in Figure 0-1. This shows that the total annual costs are relatively constant in real terms at about $1.4 million per annum. Operational expenditure is $14.9 million for the ten year total and makes up most of the total forecast at 97 per cent. Capital renewal expenditure is for the Wairoa Landfill and Recycling Centre, and new works are for Mahia Recycling Centre. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN ii

5 Financial Forecast ($) 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , , / / / / / / / / / /28 Op/Main 1,376,211 1,379,290 1,428,413 1,437,211 1,467,866 1,527,562 1,523,322 1,558,490 1,619,414 1,626,438 Renew 20,000 20,440 20,880 21,340 21,840 22,340 22,880 23,460 24,040 24,660 Capex 130,000 51,100-5, ,849 8,051 Op/Main Renew Capex Figure 0-1: Summary of total ten year expenditure forecast Source: 2018/28 LTP Budget PLAN IMPROVEMENT The improvement opportunities described in this section have been identified throughout the development of this AMP. The most significant gaps were found in the asset data and risk management areas. The main improvement projects to be achieved in the next three years due to their priority and importance for achieving core asset management for the waste management activity include: Undertaking a formal asset valuation of the waste management assets. Developing a Business Continuity Plan for the potential loss of the Wairoa Landfill. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN iii

6 CONTENTS EXECUTIVE SUMMARY... i 1 INTRODUCTION Service Overview The Strategic Environment Key Issues Negative Effects LEVELS OF SERVICE Overview Legislative Requirements Standards And Guidelines Customer And Stakeholders Community Engagement Customer Satisfaction Waste Service Cost Comparison Contribution To The Community Outcomes Service Level Summary DEMAND Overview How The District Is Changing Growth And Demand Trends Impact On The Landfill Asset Demand Management Plan Demand Projections Growth And Demand Assumptions ASSET DESCRIPTION Introduction Asset Valuation Critical Assets Asset Utilisation And Capacity Asset Performance Asset Ownership RISK MANAGEMENT Overview Risk Management Approach Risk Context High Risk Events Risk Management Strategies Emergency Risk Planning Climate Change And Resilience LIFECYCLE MANAGEMENT PLAN Introduction Routine Operations/Maintenance Plan Renewals Plan WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN i

7 6.4 Asset Creation Disposal Plan FINANCIAL SUMMARY Financial Summary Overview Expenditure Categories Operational Expenditure Summary Capital Expenditure Summary Revenue Summary Implications Of Meeting Budget Limitations Financial Policies And Funding Assumptions And Confidence Levels PLAN IMPROVING AND MONITORING Overview Am Practices Improvement Planning Improvement Monitoring GLOSSARY APPENDICES Appendix 1: Appendix 2: Risk Register Full LOS Table WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN ii

8 1 INTRODUCTION 1.1 SERVICE OVERVIEW SCOPE OF SERVICES The primary purpose of the Waste Management Activity is to support the following key functions and services: The provision and operation of the Council s waste management strategy including promoting waste minimisation by informing our community and education. The maintenance of the landfill assets including the landfill, recycling centre, rural recycling drop off points and weighbridge. Provision of a domestic waste and recycling collection service. Aftercare of closed landfills ABOUT THIS PLAN The AMP is a tactical plan that gives effect to a range of other strategic and tactical planning documents including Council s strategic direction and LTP. This plan signals a step change for Council to a more a proactive approach to managing the waste management activity. This AMP demonstrates how Council s goals and strategic targets will be achieved through effective sustainable management of waste management assets. This AMP covers a period of ten years between 1 July 2018 and 30 June It is assumed that the AMP will be updated every three years unless there are significant changes to activities, programmes and expenditure. This plan has been written to provide the information required for good AM planning as set out in: LGA 2002 Schedule 10 and amendments Office of the Auditor General criteria for AMPs, 2006 International Infrastructure Management Manual (IIMM) 2015, published by New Zealand Asset Management Support (NAMS) ASSET SUMMARY The Waste Management Activity covers the services and associated assets outlined in Table 1-1. Table 1-1 Asset summary ACTIVITY REFUSE & RECYCLING KERBSIDE COLLECTION PUBLIC LITTER BINS RURAL RECYCLING DROP OFF LANDFILL OPERATION WASTE MANAGEMENT SERVICES WASTE DIVERSION, RECYCLING CENTRE CLOSED LANDFILLS DESCRIPTION Weekly collections in urban areas Provision of public litter bins Eight locations are provided for rural recycling drop off once per month Operation and management of the Wairoa Landfill Promotion of waste minimisation by informing our community and educating about recycling and re-use opportunities Operation and management of the recycling facility located at the landfill Management of the five closed landfills within our District WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 3

9 1.2 THE STRATEGIC ENVIRONMENT Council s vision defines who we are, what we are trying to achieve and who our intended customers are in a single succinct statement. COUNCIL S VISION: CONNECTED COMMUNITIES, DESIRABLE LIFESTYLES, TREASURED ENVIRONMENTS Sitting beneath this vision is a statement outlining the expected Strategic Result for each activity. The vision is supported by nine Council Outcomes. The relationship of the Waste Management Services AMP with Council s Community Outcomes is shown in Table 2-5. Council s vision for the future for the Waste Management Activity is: WASTE MANAGEMENT GOAL: TO MANAGE WASTE IN A COST-EFFECTIVE WAY THAT REDUCES HARMFUL EFFECTS & IMPROVES EFFICIENCY OF RESOURCE USE The goals that we will use to achieve the waste management vision are: increase economic benefit by using resources more efficiently reduce the harmful effects of waste to human health and the environment. 1.3 KEY ISSUES The key issues Council is managing as part of the Waste Management Activity are summarised in Table 1-2. Table 1-2: Key issue summary KEY ISSUES POTENTIAL IMPACTS REFER TO AMP SECTION Low participation rate in Council s kerbside refuse collection service. Landfill revenue is not recovering the full cost of operations. The Wairoa community is remote and Council has a small rating base. There is a need to ensure waste services remain affordable. Safe, effective best practice management of the Wairoa Landfill. Varying seasonal demands, particularly during the peak holiday season over Christmas and New Year, when the number Provision of a collection service become uneconomical as the collection contractor currently receives revenue from bag sales. The cost of retaining the landfill service in the district will increase when the service is next tendered. Council are collaborating with neighbouring Gisborne District to accept out of region waste. Waste services become unaffordable for the Wairoa ratepayers. Potential for cost increases to meet best practice. Potential for serious harm incident to people or property. Customer dissatisfaction with service resulting in customer complaints. Section 4.4 Asset Utilisation and Capacity Section 4.4 Asset Utilisation and Capacity and Section 7.5 Revenue Summary Section 3.4 Impact on the Landfill Asset and Section 7.5 Revenue Summary Section 5.4 High Risk Events Section 2.6 Customer satisfaction WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 4

10 of people in places such as Mahia can increase significantly which creates additional short term waste management issues. 1.4 NEGATIVE EFFECTS WAIROA The Waste Management Activity is an essential service for maintaining public health and protecting the environment. However, the Waste Management Activity may have negative effects on the social, cultural, environmental and economic wellbeing of the region. These negative effects are managed through a variety of processes, summarised in Table 1-3 and in Section 5 Risk Management and Section 6 Lifecycle Management Plan. Table 1-3: Summary of negative effects WELL-BEING POSITIVE NEGATIVE MITIGATION SOCIAL AND CULTURAL WELL-BEING ENVIRONMENTAL WELL-BEING ECONOMIC WELL-BEING Drop-off facilities available to meet seasonal demand at popular summer destinations. Information is provided on Council s website, radio, information leaflets and notice boards, of collection times and collection frequencies increased in seasonal peak period to meet demand. Steady reduction in tonnage to landfill through development of the recycling diversion facility and proactive waste minimisation programmes including education in schools, maraes and on website. Waste received at engineered landfill with liner and leachate collection system. Drop off facilities are provided, suiting individual preferences. Visual and odour issues at facilities. Some visual pollution during refuse collection times. Landfill operation becomes less affordable due to the fixed operating costs. Leachate discharge from Wairoa Landfill and closed landfills may impact adversely on the receiving environment. The waste management service is not a fully user pays model with consequent rates impact. Siting facilities away from close residential properties as practical; ensure collection times are optimised to meet peak demand. The effective scheduling of collections and the implementation and enforcement of appropriate bylaws. The collection frequencies are adjusted as required to meet changing patterns. Opportunities for regional collaboration with Gisborne are being investigated. Regular monitoring and inspections of leachate systems. Proactive collaboration initiatives with Gisborne District Council (GDC) are being driven. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 5

11 2 LEVELS OF SERVICE 2.1 OVERVIEW WAIROA Council aims to manage the Waste Management Activity to deliver the levels of service (LOS) in a sustainable and safe manner over the long term. This section defines the LOS or the qualities of the service that Council intends to deliver and the measures used to monitor this. The adopted LOS supports Council s strategic goals and is based on stakeholder requirements, user expectations, and statutory requirements. 2.2 LEGISLATIVE REQUIREMENTS Legislation has an effect on LOS by effectively setting the minimum required LOS alongside other drivers such as customer requirements, industry codes of practice and standards and the desire to achieve good practice. Table 2-1 below details the summary of relevant legislative requirements that affect the Waste Management Activity. Table 2-1 Key Legislation impacting specifically on waste management ACT HEALTH & SAFETY AT WORK ACT (HWSA) 2015 WASTE MINIMISATION ACT 2008 (WMA) HEALTH ACT 1956 LITTER ACT 1979 HAZARDOUS SUBSTANCES & NEW ORGANISIMS AMENDMENT ACT (HSNO Act) 2015 DESCRIPTION The HSWA is New Zealand's workplace health and safety law. It came into effect on 4 April HSWA repeals the Health and Safety in Employment Act The Act sets out the principles, duties and rights in relation to workplace health and safety. Under HSWA, a business or undertaking (PCBU) must look after the health and safety of its workers and any other workers it influences or directs. The business or undertaking is also responsible for the health and safety of other people at risk from its work including customers, visitors, or the general public. This is called the 'primary duty of care.' The purpose of the WMA is to encourage a reduction in the amount of waste we generate and dispose of in New Zealand, and aims to lessen the environmental harm of waste. This Act also aims to benefit our economy by encouraging better use of materials throughout the product life cycle, promoting domestic reprocessing of recovered materials and providing more employment. It puts a levy on all municipal waste disposed of in a landfill, initially at $10 per tonne*, effective as of 1st July It clarifies the roles and responsibilities of territorial authorities with respect to waste minimisation e.g. updating Waste Management and Minimisation Plans (WMMPs) and administering levy funding for waste minimisation projects. Section 42 requires that a Territorial Authority promote effective and efficient waste management and minimisation within its district. * A report looking at the possible effect changes to the levy could have, was published in June The report was funded by a consortium of public and private sector organisations and proposes a number of changes to the levy. The report highlights the potential for the levy to be increased and also highlights associated benefits. The Health Act 1956 places obligations on territorial authorities (if required by the Minister of Health) to provide sanitary works for the collection and disposal of refuse, for the purpose of public health protection (Part 2 Powers and duties of local authorities, s 25). This act makes it an offence for any person to deposit litter in a public place or private land without approval from the landowner. The HSNO Act addresses the management of substances that pose a significant risk to the environment and/or human health, from manufacture to disposal. The Act relates to waste management primarily through controls on the import or manufacture of new hazardous materials and the handling and disposal of hazardous substances. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 6

12 ACT RESOURCE MANAGEMENT ACT (RMA) 1991 CLIMATE CHANGE (EMISSIONS TRADING) AMENDMENT ACT 2008 (ETS) LOCAL GOVERNMENT ACT (LGA) 2002 DESCRIPTION The RMA is the key legislation that sets out how we should manage our environment. Although it does not specifically define waste, the Act addresses waste management and minimisation activity through controls on the environmental effects of waste management and minimisation activities and facilities, through national, regional and local policy, standards, plans and consent procedures. Operational and decommissioned landfills and transfer stations are operated in accordance with Resource Consents issued by Environment Waikato under the provisions of the RMA. The Resource Consent conditions may cover issues such as the control and monitoring of leachate, dust, odour, pests, wind-blown rubbish, aesthetics and other environmental impacts. The Climate Change (Emissions Trading) Amendment Act 2008 requires landfill owners to surrender emission units to cover methane emissions generated from the landfill, thereby impacting upon the cost of landfilling. Should any future solid waste incineration plants be constructed, the Act would also require emission units to be surrendered to cover carbon dioxide, methane and nitrous oxide emissions from the incineration of household wastes. This Act requires local authorities to: describe the activities of the local authority provide a long-term focus for the decisions and activities prepare a LTP, at least every three years. A key purpose of the LGA is the role of local authorities in meeting the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses. AMPs are the main method of demonstrating Schedule 10 requirements. Section 17A requires that Councils review the cost effectiveness of the way they deliver their services to ensure they meet the needs of communities. This service delivery review looks at the governance, funding and delivery of infrastructure, services or regulatory functions, and requires consideration of alternative delivery models including (but not limited to) in-house by council, by another local authority, by a council-controlled organisation, or by another person or agency. These reviews are an ongoing requirement and must be undertaken at least every six years. Council completed a Section 17A review of solid waste in 2017 in collaboration with GDC for a regional approach. 2.3 STANDARDS AND GUIDELINES The primary documents that guide service standards for the Waste Management Activity are summarised in Table 2-2. Table 2-2 Council's policy, standards and guidelines STANDARD/GUIDELINE COUNCIL PLANS DESCRIPTION Council is currently updating the WMMP. Council has a statutory responsibility under section 42 of the WMA 2008 to promote effective and efficient waste minimisation within the District. In order to do this, the Council is required to adopt a WMMP under section 43 of the Act. The WWMP is a guiding document which identifies Council s vision, goals, objectives, targets and methods for achieving efficient and effective waste management and minimisation. It also provides information on how Council intends to fund the activities of the WMMP over the next six years. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 7

13 STANDARD/GUIDELINE NEW ZEALAND WASTE STRATEGY & THE MINISTRY FOR THE ENVIRONMENT (MFE) GUIDELINES DESCRIPTION The New Zealand Waste Strategy sets out the Government's long-term priorities for waste management and minimisation in New Zealand. The Strategy s two goals provide direction to local government, businesses (including the waste industry), and communities on where to focus their efforts in order to deliver environmental, social and economic benefits to all New Zealanders. The goals are: reducing the harmful effects of waste RESOURCE MANAGEMENT (NATIONAL ENVIRONMENTAL STANDARDS FOR AIR QUALITY) REGULATIONS 2004 (NES) improving the efficiency of resource use. The MfE has also released many best practice guidelines for the management of various aspects of the waste management activity. Council considers these guidelines to manage this activity where practicable. This NES requires certain landfills (e.g. those with a capacity of more than 1 million tonnes of waste) to collect landfill gases and either flare them or use them as fuel for generating electricity. The result is increased infrastructure and operational costs for qualifying landfills, although with costs potentially offset by the harnessing of captured emissions for energy generation. Unless exemption criteria are met, the NES for Air Quality also prohibits the lighting of fires and burning of wastes at landfills, the burning of tyres, bitumen burning for road maintenance, burning coated wire or oil, and the operation of high-temperature hazardous waste incinerators. These prohibitions limit the range of waste treatment/disposal options available within New Zealand with the aim of protecting air quality. 2.4 CUSTOMER AND STAKEHOLDERS Understanding the customer and stakeholder gives an understanding of how the service is provided. Table 2-3 below shows the key customers and main stakeholders involved in Council s waste management and their specific areas of interest. Table 2-3 SEGMENT Summary of customers and stakeholders AREA OF INTEREST CUSTOMERS The community - citizens and ratepayers Residential and visitors to the District Rates impact Need for healthy and sustainable environment Prompt collection services Drop off facilities Litter collection provision in public areas EXTERNAL STAKEHOLDERS Government agencies (MfE, Office of the Auditor General, Audit NZ, Ministry of Health) Hawke s Bay Regional Council Iwi Environmental groups GDC Interested in prudent solid waste management and minimisation that is environmentally robust Interested in compliance with resource consents Disposal of waste in an environmentally friendly manner is of cultural significance to this group Interested in improvement to the natural environment and waste minimisation initiatives Require collaboration and coordination in the combined initiative the sub regional use of the Wairoa Landfill WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 8

14 SEGMENT Trusts that manage independent collection centres AREA OF INTEREST Interested in Council facilitation of their centres through providing land leases and funding where appropriate INTERNAL STAKEHOLDERS Mayor and Councillors Community Boards Hired contractors Strategic outcomes Rates impact Customer satisfaction Interested in specific projects in their area, levels of service, and rates impact, and working with community groups Interested in maintaining profitability Health and safety of staff and other workers 2.5 COMMUNITY ENGAGEMENT Community engagement on developing levels of service for the Waste Management Activity used the following main consultation initiatives: LTP and Annual Plan consultation processes Request for Service (RFS) Customer surveys. 2.6 CUSTOMER SATISFACTION Council monitors customer satisfaction with its services annually. Figure 2-1 demonstrates over the last three years there has been minimal change in the satisfaction of the community with refuse disposal and landfill management. Issues that continue to cause dissatisfaction include: Have to pay for bags/bags too expensive Costs/too expensive/rates should cover/encourages fly-tipping. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 9

15 100% 90% 80% Percentage satisfaction 70% 60% 50% 40% 30% 20% 10% 0% Year Figure 2-1 Customer satisfaction levels Source: Communitrak Survey (March 2016) 2.7 WASTE SERVICE COST COMPARISON Figure 2-2 shows the annual waste service costs per person for the New Zealand Councils. Wairoa s waste service costs are moderate compared to councils with similar sized populations. Figure 2-2: Annual waste service costs Source: Stats NZ Infoshare, 2016 population and annual operating expenditure by activity WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 10

16 2.8 CONTRIBUTION TO THE COMMUNITY OUTCOMES The waste management contribution to the Community Outcomes are shown in Table 2-4. Table 2-4 Contribution of the Waste Management Activity to Community Outcomes COMMUNITY OUTCOME ECONOMIC WELL-BEING SOCIAL AND CULTURAL WELL-BEING A Strong, Prosperous and Thriving Community A safe and integrated transport system A community that value and promotes its unique culture and heritage WASTE MANAGEMENT CONTRIBUTION Provision is made for the ability to create business growth around the disposal of waste. N/A Council continues to develop waste management models in collaboration with rural communities and local hapu/iwi. ENVIRONMENTAL WELL-BEING Safe and Accessible Recreation Facilities Supportive, Caring and valued Communities Strong district leadership and a Sense of Belonging N/A Education component within waste management looks to gain support and educate local communities about responsible waste management. A safe and Secure Community Safe from harmful contamination is a result from well managed waste disposal. A lifetime of Good Health and Wellbeing An environment that is Appreciated, Protected and Sustained for Future Generations Protection of public health through availability of appropriate waste disposal. Future planning of the activity ensures a sustainable service over time. Compliance with RMA and legislative requirements ensures a protected environment. 2.9 SERVICE LEVEL SUMMARY The waste management LOS have been developed based on: statutory requirements public health and safety LTP and Annual Plan consultation processes user service expectations. The performance measures will be achieved through the delivery of our capital and operational works programmes. The LOS and performance measures for the Waste Management Activity are summarised in Table 2-5. A full description of LOS targets, measures and metadata over the next ten years is included in Appendix 2. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 11

17 Table 2-5 Waste management service level summary COMMUNITY OUTCOMES A SAFE & SECURE COMMUNITY KEY SERVICE ATTRIBUTE Safety LOS Provide safe and reliable refuse and recycling kerbside collection services and rural waste services PERFORMANCE MEASURE Minimum frequency of kerbside refuse and recycling service in Wairoa & Frasertown Minimum frequency of collection from specified dropoff points from Mahia, Nuhaka and Mohaka PERFORMANCE MEASURE TYPE CURRENT LOS PERFORMANCE FOR 2016/17 CURRENT YEAR 2017/18 TARGET 2018/19 TARGET (YEAR 1) Customer Weekly Weekly Weekly Customer Fortnightly Fortnightly Fortnightly Percentage of residents satisfied with Council's waste service Customer 65% >80% >80% Arrangements in place to enable communityrun refuse and recycling services in Waikaremoana and Raupunga Customer Achieved - co management in Tuai and Raupunga Full achievement Full achievement No health and safety breaches by waste services contractors Technical New measure NA Zero fatalities/ serious injuries SUPPORTIVE, CARING & VALUED COMMUNITIES AN ENVIRONMENT THAT IS APPRECIATED PROTECTED AND SUSTAINED FOR FUTURE GENERATIONS Availability Responsiveness Environmentally Sustainable Provide the Wairoa Landfill for safe waste disposal Provide prompt responses for service Effects on the natural environment are minimised Council facilitates waste minimisation practices and promotes reduction of the amount of waste going to landfill Wairoa Landfill open 5 hours per day and 359 days per year Missed household refuse service requests responded to by 12 pm the next day (on validation) Zero significant non-compliance events with the resource consent conditions for the Wairoa Landfill Zero significant non-compliance events with the resource consent conditions for the closed landfill sites The amount of material diverted from landfill by the Wairoa community increases from 75 tonnes (note target excludes green waste) Customer Achieved 6 hours a day, closed 6 days in year Full achievement Customer New measure NA 90% Full achievement Technical New measure Full achievement Full achievement Technical New measure Full achievement Full achievement Technical New measure NA 100 tonnes WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 12

18 3 DEMAND WAIROA 3.1 OVERVIEW This section describes demographic change for the Wairoa District and the approach Council will take to manage the effects of change for the Waste Management Activity. Council works in close collaboration with neighbouring Gisborne District for the management of solid waste, and have undertaken a Section 17A Solid Waste review that identified the benefits of closer collaboration between the districts on the delivery of waste services. 3.2 HOW THE DISTRICT IS CHANGING The Wairoa District has been slowly declining in terms of population from 10,200 in 1996 to estimated resident population of 8,150 in This steady decline in population is not expected to continue. The resident Māori population in the District accounts for about 60 per cent of the total population. 3.3 GROWTH AND DEMAND TRENDS This section details the key trends affecting solid waste demand SOLID WASTE DISPOSAL TRENDS Figure 3-1 to Figure 3-3 show trends in various waste streams over the period 2009 to Total waste to landfill saw a reduction in the period 2011 to 2014 following Council s introduction of a diversion facility at the Wairoa Landfill. Total waste to landfill has since increased back to its previous weight of 2,000 tonnes per annum and appears to be remaining constant. The proportions of general waste to greenwaste entering the landfill has fluctuated historically as shown in Figure 3-2. Total greenwaste diverted is between 1,000 tonnes to 1,200 tonnes per annum. Figure 3-3 shows a steady increase of diverted other recycling and steel materials over the eight-year period. Figure 3-1 Landfilled waste Source: Council supplied Levy Returns (as at 20 September 2017) WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 13

19 Figure 3-2: Diverted greenwaste material Source: Council supplied Levy Returns (as at 20 September 2017) Figure 3-3: Diverted steel and other material Source: Council supplied Levy Returns (as at 20 September 2017) WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 14

20 3.3.2 CHANGES IN POPULATION & DEMOGRAPHIC PATTERNS There are several demographic patterns affecting waste management services. The Wairoa District has both a declining and aging population. Both factors are expected to impact waste production and thereby demand for waste services. Furthermore, Mahia experiences large population fluctuations over the summer months. AVERAGE HOUSEHOLD AGE & SIZE As the district s overall population decreases the average household size is also projected to decline. It is also expected that households will have a higher percentage of older people due to the district s aging population. The impact is likely to be greater in rural areas as the aging population move to urban centres for convenience and security. Smaller households generate less refuse, although they generally generate more per person. SERVICING RURAL AREAS A decrease in population density of rural areas will affect the viability of the council collection contract providing service to these areas. This has the potential to impact the service offered to rural areas in the future. SEASONAL PEAK The Mahia area is a popular location in the summer season, particularly the Christmas and New Year period. The large influx of visitors and non-resident holiday house owners causes the population to increase to much greater numbers than the usually resident population. This seasonal peak has a large impact on demand for services, including solid waste. The population in this area can increase by up to 10 times from a normally resident population of 1,000, to 10,000 over the summer season. COMMUNITY BEHAVIOUR CHANGE Council is proactive in involving communities in managing waste in their own areas. Previously this has involved the breaking down of large waste management contracts to allow smaller, community minded organisations to manage waste in their area. Individual householders in Wairoa often choose to manage their own refuse by taking their waste directly to the landfill. Landfill charges have been increased to match kerbside collection costs (bags sales) to mitigate the effect, however it is expected that this behaviour will impact demand for kerbside services and contracts going forward. Fly tipping is also a current practice within the District. This behaviour is being addressed with education and enforcement where necessary. 3.4 IMPACT ON THE LANDFILL ASSET The Wairoa Landfill is the current district landfill and is consented until A decreasing population and thereby reduced waste customers and volumes will result in the static costs of landfill operation being spread over a smaller population. This has the potential to affect costs to the remaining Wairoa residents. Collaboration with neighbouring GDC is expected to present opportunities to accept out of district waste to the landfill, and hence share the cost of its ongoing operation and long term viability. 3.5 DEMAND MANAGEMENT PLAN Managing waste demand is not only about managing future needs and expectations, but also about change in behaviours and philosophy. Through this multifaceted approach, waste can be diverted from landfills. Our current demand management actions are summarised in Table 3-1. Table 3-1 Current demand management plan PROGRAMME STRATEGY USER PAYS WITH DESCRIPTION Long term planning is instrumental to managing growth and demand requirements. Council s key strategy for managing waste is the WMMP Customers are charged on a user pays basis for waste disposal at the Wairoa Landfill WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 15

21 PROGRAMME WEIGHBRIDGE AT WAIROA LANDFILL RUBBISH & RECYCLING EDUCATION PRICING DESCRIPTION and user pay bags for kerbside refuse collection Council is committed to promoting responsible waste management solutions and is keen to work with groups or individuals to improve their waste management. Council staff and contractors are encouraged to engage with schools, community groups, maraes and individuals regarding ways to reduce the amount of waste being produced and better ways to deal with what is produced. As part of the collaboration effort, Wairoa is working with GDC to ensure educational messages are consistent across both Districts. Our landfill and bag charges are structured to both incentivise users to minimise waste to landfill and prevent illegal dumping 3.6 DEMAND PROJECTIONS The demand on waste management infrastructure is expected to remain constant in the short term. Long term however, the Wairoa Landfill will become more cost effective and sustainable, with increase in demand if it starts accepting out of district waste in collaboration with GDC. 3.7 GROWTH AND DEMAND ASSUMPTIONS The key growth and demand assumptions are as follows: Aging and youth population results are based on Statistics New Zealand 2013 Census. The summer seasonal peak period will continue based on historical trends and locations. Construction of a new cell at Wairoa Landfill is excluded at this stage as filling rates too low. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 16

22 4 ASSET DESCRIPTION 4.1 INTRODUCTION WAIROA The Waste Management Activity provides a number of services for waste to be properly disposed of to protect public health and the environment. The activity also promotes reuse, recycling and resource recovery with the objective of reducing the amount of waste going to landfill. We provide litter collection in public areas, kerbside collection services and a rural recycling drop off service. We are looking at the possibility of introducing public recycling bins in additional to the existing litter bins. At a high level, our Waste Management Activity includes activities shown in Table 4-1. Table 4-1 Waste management activity features ACTIVITY REFUSE & RECYCLING KERBSIDE COLLECTION PUBLIC LITTER BINS RURAL RECYCLING DROP OFF LANDFILL OPERATION WASTE DIVERSION, RECYCLING CENTRE CLOSED LANDFILLS DESCRIPTION Weekly collections Public litter bin emptying Rural recycling occurs on the third Sunday of every month, at eight drop off locations Operation and management of the Wairoa Landfill Operation and management of the recycling facility located at the landfill Management of the five closed landfills within our District The breakdown of Wairoa s waste management facilities by asset class is shown in Table 4-2. Table 4-2 Waste management facilities summary ASSET CLASS PUBLIC LITTER BINS BUILDINGS STRUCTURES LANDFILL DESCRIPTION 14 bins in the Wairoa township and 17 bins in Mahia There are buildings associated with various assets as follows: Recycling centre (located at landfill) recycling building and receiving area for depositing of recyclable materials amenities block steel shed for sorting recyclables Weighbridge (located at landfill) operators office including computer hardware & software There are structures associated with various assets as follows: Landfill concrete tipping wall with safety rail canopy over main operations area where recyclable materials are sorted and processed perimeter fencing Recycling centre concrete pad for receiving and sorting The Wairoa Landfill consists of cells and sealed access roads WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 17

23 ASSET CLASS DRAINAGE (WAIROA LANDFILL) WEIGHBRIDGE CLOSED LANDFILLS DESCRIPTION The Wairoa Landfill has the following drainage system to manage leachate and stormwater: leachate system comprising 50mm leachate pipes and four leachate chambers stormwater system including 900mm culverts, open drains, stormwater bunds A weighbridge is located at the Wairoa Landfill There are five closed landfills holding consents in the District, these are: Frastertown Mahia Nuhaka Raupunga Ruakituri 4.2 ASSET VALUATION The indicative value of the waste management assets is detailed in Table 4-3. The information is taken from Council s database for rating values and is dated August As such, the following limitations apply: Figures include reinstatement value for buildings, replacing like for like. Buildings were not broken down into components as they are generally of a relatively simple construction form and do not involve significant mechanical plant or ancillary services. Land values are based on fair market value in New assets are valued at purchase value and are depreciated every year on a straight-line basis. The valuation figures given do not provide for depreciation These figures only include the Wairoa Landfill assets; they are exclusive of land assets at the now closed landfill sites. Table 4-3 Indicative waste management asset values ASSET VALUE 2012 BUILDINGS & STRUCTURES Amenities Building $166,200 Weighbridge Building $99,900 Storage Shed $16,700 Canopy $197,900 TOTAL $480,000 LAND Wairoa Landfill $240,000 TOTAL $240,000 The total value of the Wairoa Waste Management (landfill) assets (land and capital value) is $720,700 A formal asset valuation of the waste management assets is recognised as an improvement project. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 18

24 4.3 CRITICAL ASSETS WAIROA Although there has been no formal asset criticality assessment, Wairoa Landfill is considered critical. Its unavailability would result in significant loss of service to the community. 4.4 ASSET UTILISATION AND CAPACITY All waste management assets are adequate for current and future use. Based on visual inspection the buildings in the portfolio are in acceptable condition. At the current waste disposal rates, the Wairoa Landfill has sufficient capacity within the current operational cell until its consent expires in No new cells would need to be constructed. Figure 4-1 illustrates the projected airspace consumption if Wairoa Landfill accepts out of District waste, firstly from GDC s rural transfer stations, and secondly GDC s urban waste. The figure shows that stage 2 would need to be constructed by 2025 if the site is receiving waste from out of the District. If the site s resource consents are renewed in 2031, then stage 3 would need to be built in 2031, stage 4 in in 2037 and stage 5 in Figure 4-1 Wairoa Landfill airspace consumption New cell is only justified if long term agreement with GDC that in turns justifies consent renewal. This will inform the 2021 AMP and LTP. 4.5 ASSET PERFORMANCE The performance of the Wairoa Landfill and closed landfills is mainly meeting consent conditions, and protecting site users from operational and closed landfill hazards. The key performance issues are summarised in Table 4-4 and Table 4-5. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 19

25 Table 4-4 Wairoa Landfill asset performance PERFORMANCE ISSUE CONSENT CONDITIONS FIRE BREAKS TIPPING FACE LANDFILL COVER ASBESTOS HANDLING LEACHATE SYSTEM COMMENT AND MITIGATION The Wairoa Landfill site is currently managed by QRS who are responsible for implementing the Landfill Management Plan (LMP) which forms part of the consent. The LMP requires updating to better reflect the current site practices. There have been several instances of audit feedback where operating conditions as required under the LMP are not being met. The Wairoa Landfill is surrounded by a mature forestry block owned by Council. Landfill fire has been identified as a significant risk to Council at the Wairoa Landfill, including the potential impact on the forestry block. Landscaping capital works are planned annually from 2017/18 to establish fire breaks to actively mitigate this risk. The tipping face is a high hazard area where staff and members of the public are exposed to fall hazards and moving machinery. Exclusion zone procedures and enforcement is to be reviewed to ensure the ongoing safety of the public and staff. Daily cover of operating landfills is considered best practice and is not being implemented on a consistent basis at the Wairoa Landfill. Regular cover of waste helps to mitigate the risk of fire, odour, vermin, and exposure of staff and the public to contaminants. The cost of applying cover should be assessed against the level of risk associated with lack of cover over the operational areas. Asbestos poses a serious health risk to workers and the public. Asbestos handling procedures should be reviewed to ensure immediate burial of asbestos-containing material. There is currently limited separation of clean stormwater from leachate. Furthermore, during high rainfall events, stormwater overtops the containment bund between the landfill and the stormwater pond, resulting in additional stormwater entering the leachate system. Raising the bund between the stormwater pond and the landfill would increase the stormwater storage capacity and reduce the incidents of clean stormwater flowing into the landfill. Steps could also be taken to increase separation where practical. Table 4-5 Closed landfills asset performance PERFORMANCE ISSUE CONSENT CONDITIONS LANDFILL CAP LANDFILL LINER GAS COMMENT AND MITIGATION There are currently five closed landfill sites that are consented. Meeting the consent conditions require monitoring to ensure Council is complying with consent conditions and monitoring trends. The condition, permeability and depth of the cap for many of the sites are not yet known. Information on the capping detail and material type is important for managing the closed landfill sites. In particular, knowledge of any contaminated material is required to ensure there are no high risk activities on these sites (or restrictions based on risk). Most landfills do not have engineered liners and in many cases, refuse was dumped directly onto ground. As above, it is important that the key landfill liner information is recorded in the site list in the future. Many closed landfills continue to generate gas, with some at levels that could make them unsafe if exposed to the public. There is currently no routine gas monitoring at the closed landfills. 4.6 ASSET OWNERSHIP Land assets and key facilities including the recycling centre, Wairoa Landfill and all closed landfills are owned by Council. The current contractor (QRS) own the machinery used to carry out the services. For example, the compactor located on site at the landfill and collection trucks used for the kerbside collection service. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 20

26 5 RISK MANAGEMENT 5.1 OVERVIEW WAIROA Risk management is an inherent part of Council s overall management philosophy and is incorporated in all of our waste management practices. Risk is managed through development and ongoing review of activity risk assessments, as well as through emergency response planning, contingency planning, and routine monitoring and maintenance response. 5.2 RISK MANAGEMENT APPROACH Council s draft Risk Management Policy outlines its stance and approach to risk management. It gives effect to Council s objectives and commitment to risk management, and outlines the rationale for managing risk, the accountabilities for risk management, how risk management performance will be measured and reported, and the commitment to periodic review and improvement. Council follows a traditional risk management approach that is underpinned by the following risk hierarchy (decreasing order): Corporate Risk Management Policy For enterprise wide approach to ensure consistent approach to risk across the whole organisation Health and Safety Register Enterprise wide register of all health and safety risks Hazard Register Enterprise wide hazard register including by building Activity Register Undertaken as part of the ongoing development of the AMPs Project Risk Assessments Undertaken with large and complex capital projects 5.3 RISK CONTEXT There are nine areas of impact reflecting the extent of the consequences assessed including financial, health and safety, operational capability, reputation and environment. Events leading to failure to achieve defined LOS, and therefore compromising achievement of goals have been identified as activity risks. The matrix of consequence of impact and likelihood ratings is used to assess the level of risk. Events are ranked as low, moderate, high or critical risk. Asset risks have then been compared, ranked and mitigation options assessed for all risks identified. The full activity risk register is detailed in Appendix 2. This shows the critical and high risks identified, and the existing and additional controls through mitigation strategies, which will be implemented to result in the mitigated risk rating. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 21

27 5.4 HIGH RISK EVENTS WAIROA The activity review as part of the development of the 2018 AMP identified 12 risk events (refer to Appendix 1) with one classified as critical and five as high, as shown in Table 5-1. Table 5-1: Critical and high risk events RISK EVENT CAUSED BY INITIAL RISK Fire damage to property specifically neighbouring council owned forestry block Public or personnel incident resulting in ill health, injury or death Public or personnel incident resulting in ill health, injury or death Public or personnel incident resulting in ill health, injury or death Cost of landfill operation becomes unaffordable Consent breach at Wairoa Landfill due to leachate overload 5.5 RISK MANAGEMENT STRATEGIES Landfill control operations not sufficient to mitigate the risk Explosion due to combustible atmosphere Contact with contaminated material Exclusion zones improperly enforced resulting in fall from height or interface between pedestrians and heavy machinery One or more best practice landfill management practices currently not being undertaken are enforced. For example, daily cover instalment Wairoa s population declines Change in wastewater treatment plant consent impacts the nutrient load limits. Current stormwater separation at landfill is incapable of mitigating risk Critical The risks identified through these processes are a key input into identification and prioritisation of programmes and projects. Council has planned to address these highest risk events through the following mitigation strategies: Review of fire mitigation controls scheduled for completion by March Review of safety procedures for the following high-risk areas: High High High High High o o o o confined space asbestos handling staff inoculations pedestrian exclusion zones specifically regarding the tipping wall and machinery operation Review of the confined space component will also include ensuring all confined spaces have physical access prevention and are clearly labelled. This could extend to the identification of low lying depressions where landfill gas could accumulate to high levels. Regular review of the level of control in place to prevent a sudden increase in the cost of landfill operation. Quantification of the composition and volume of leachate produced by Wairoa Landfill and a move towards greater stormwater separation. 5.6 EMERGENCY RISK PLANNING Business Continuity Plans (BCP) are developed to coordinate efforts for keeping Council business operating through high risk events such as pandemics, staff death and terrorism, as well as if a place of business, such as the main office building, are affected by adverse physical conditions. Events may include earthquakes, storm, unhealthy building (i.e. asbestos), fire, crime, prolonged IT outage, or the death of a key role. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 22

28 Council has an existing BCP (2001) for response processes to be implemented for any major interruption to business operations and service delivery. It is recognised that it needs updating to better reflect latest industry practices. Furthermore, the loss of function of the Wairoa Landfill has been identified as a moderate level risk and planning for this event should be included in an update of Council s BCP, for example by identifying alternative landfill deposal sites, transport routes and required transport fleet. 5.7 CLIMATE CHANGE AND RESILIENCE The latest climate change projections from the International Panel on Climate Change (IPCC) have been translated for New Zealand. From a planning perspective, the major changes are expected to be: A change in frequency of extreme events such as storm intensity, heavy rainfall, drought, wind extremes and thunderstorms rather than a change in average conditions locally. Higher temperatures - temperatures are likely to be 0.7 C to 1.1 C warmer by 2040 than in 1995, and 0.7 C to 3.1 C warmer by Rising sea levels - the IPCC forecasts just under a metre sea level rise by late this century. A change in rainfall patterns. Climate change is a major management issue facing all infrastructure providers and the built environment. Sea levels are predicted to change as a result of climate change. A key feature of climate projections within New Zealand that will have the most impact on the closed landfill activity is sea level rise. Climate change scenarios also predict an increased frequency of severe weather events. Events that result in significant reductions in air pressure will have impacts on landfill gas discharges. Consideration needs to be given to impacts on site users, infrastructure and timing of maintenance and development activities to control this hazard. Increased wet weather events may have implications for stormwater management. Severe weather may also have implications for cap integrity under soil shrinkage and cracking, providing pathways for landfill gas release to surfaces. The Canterbury earthquakes have highlighted the importance of resilient networks. Resilience is a guiding principle in the infrastructure plan, so that national infrastructure networks are able to cope with significant disruption from natural disasters and hazards, and adapt to changing circumstances. This is reinforced by the vision for the 2015 National Infrastructure Plan as follows: By 2045 New Zealand s infrastructure is resilient and coordinated and contributes to a strong economy and high living standards. Council s overall approach to resilience is to manage the risks where vulnerabilities and hazards are identified. Investment is identified when required to reduce the risks and vulnerabilities of infrastructure, such as the strengthening of the existing assets. Preventing adverse effects of climate change and natural hazards through careful planning of future infrastructure is significantly more cost effective than trying to retrofit/mitigate later. With this approach we do not locate new communities and supporting infrastructure in areas at significant risk from hazards. This will affect where our District grows in the future and the form and affordability of development. Our current actions to improve the resilience for the waste management infrastructure assets include: To monitor the performance of closed landfills and undertake necessary maintenance and mitigation measures. To consider the impact on increased rainfall on the production of leachate from open and closed landfills and the potential effects on receiving systems including treatment plants. To consider the impact of increasing temperatures and dry periods on fire risk particularly regarding the ongoing management approach of the Wairoa Landfill. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 23

29 6 LIFECYCLE MANAGEMENT PLAN 6.1 INTRODUCTION This section of the AMP outlines maintenance plans and the planning for the renewal, upgrade, disposal and acquisition of assets for the Waste Management Activity. Council s involvement with this activity includes the operation of the landfill as well as management and funding of maintenance and operations of established assets and capital development as required. This ensures that an operational facility/service meeting all resource consent and safety requirements remains within the Wairoa District to serve the needs of this District. 6.2 ROUTINE OPERATIONS / MAINTENANCE PLAN OPERATIONS & MAINTENANCE NEEDS Maintenance strategies cover the practices that we employ to operate and maintain the waste management assets to achieve the optimum use of the asset, and at the agreed service levels. Council keeps the waste management assets suitable, accessible, safe and well maintained by carrying out planned, cyclic and responsive maintenance. Maintenance of an asset does not increase the asset s service potential or keep it in its original condition. It slows down deterioration and delays when rehabilitation or replacement is needed. It is a way of ensuring that an asset continues to deliver the required level of service. Operations and maintenance for the Waste Management Activity comprise the following: ROUTINE: Routine maintenance is the regular ongoing day-to-day work that is necessary to keep assets at their required standards. Routine maintenance includes activities such as cleaning and clearing of service facilities and inspections. Routine maintenance also includes for the regular monitoring and aftercare activities of closed landfills. PLANNED/PERIODIC: EMERGENCY/REACTIVE: Such as annual activities e.g. weighbridge servicing. Such as securing areas affected by fires. Operations generally comprises the following: collection of kerbside refuse and recyclables plus appropriate disposal of waste/recyclables manning and operation of the landfill manning and operation of the recycling centre SERVICE DELIVERY ARRANGEMENTS Council implements service levels for solid waste and recycling operations through its operational contracts, which are predominantly performance-based. These contracts are supervised and administered by Council s Engineering Department. QRS is Council s current operational contractor. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 24

30 6.2.3 OPERATIONS & MAINTENANCE ACTIONS Table 6-1 Key contractor activities collection ACTION KERBSIDE REFUSE COLLECTION KERBSIDE RECYCLABLES COLLECTION DESCRIPTION Weekly collection of bagged refuse from the kerbside in Wairoa and Frasertown Weekly collection of bagged refuse from rural areas on designated collection routes with increased frequency over summer in Mahia Collection of refuse from reserve and street bins Annual inorganic collection from rural areas Uplift recyclables from kerbside in Wairoa & Frasertown (weekly), sort and process for diversion from landfill Note returns from recyclables belong to the Contractor Table 6-2 Key contractor activities Wairoa Landfill ACTION WASTE DIVERSION AT THE WAIROA LANDFILL RECOVERY OF METALS GREENWASTE HAZARDOUS WASTE WEIGHBRIDGE LANDFILL OPERATIONS LEACHATE & STORMWATER CONTROL GENERAL MAINTENENCE DESCRIPTION Inspection of refuse loads of all incoming vehicles to the landfill and direction to appropriate part of site Actively assist customers to divert waste, supervise site to ensure materials are deposited to appropriate part of site, educate customers on how to sort waste for maximum recovery Sort and process recovered materials for on sale or other beneficial use (may include processing to substitute for cover or drainage media in landfill construction) Receive car bodies, whiteware and other metals Prepare as required for crusher/transportation from the District All returns from metal recoveries belong to the Contractor Receive greenwaste loads, inspect and remove major contaminants Receive any small (household or farm) quantities of hazardous waste and place in secure storage awaiting disposal by others Operate, staff and maintain weighbridge, collecting landfill charges on behalf of Council Spread, place and compact refuse Maintain access and tipping wall Maintain and operate (existing) leachate system Maintain stormwater ponds Maintain site, buildings, site roading (including sealed roads from gate), fencing Vegetation control and maintenance of landscape plantings Control of vermin, litter and nuisances Capping of landfill cells and monitoring required under the resource consent/s is excluded from the operations and maintenance contract. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 25

31 Table 6-3 Key contractor activities closed landfills ACTION SITE WALKOVERS & INSPECTIONS LANDFILL OPERATIONS FAULT REPAIRS ENVIORNMENTAL MONITORING DESCRIPTION Site walkovers are undertaken at least on an annual basis to ensure the landfill sites are safe and that there are no significant changes or issues to the facility after any remediation work. Typical closed landfills operations include upkeep of the vegetation (i.e. weed spraying), ensuring there is good grass cover and inspections to make sure the sites are safe and the landfill cover integrity is maintained. Repair damaged assets, typically defective equipment assets. These are normally identified from customer faults and operators at the closed landfills. Closed landfills are monitored in accordance with the consent conditions and the risk management approach for that specific site. 6.3 RENEWALS PLAN RENEWAL STRATEGY OVERVIEW Renewals are generally defined as major work which restores, rehabilitates, replaces or renews an existing asset to its original condition/function. The purpose of the renewal strategy is to maintain the levels of service by identifying the most cost-effective time to renew the asset. Upgrades or renewals are normally undertaken on an as needed basis. Typical works could include: hardstand area repairs Recycling Centre renewals resealing of access roads RENEWALS PROGRAMME To date, renewal of waste management assets has generally been reactive. There are $310,000 renewals planned for waste management renewals over the next ten years. This consists of the following programmes: road reseals every ten years estimated at $30k in 2018/19 Recycling Centre renewals estimated at $220k in total. 6.4 ASSET CREATION New works are those works that create a new asset that did not previously exist, or works that upgrade or improve an existing asset beyond its existing capacity. Council will continue to invest in waste infrastructure with the main drivers being: To meet the demands of growth by contributing waste management services to encourage recycling. To meet the levels of service with respect to safe and effective refuse and recycling kerbside collection services. To meet legislative compliance and reduce the exposure to risk (consent requirements for closed landfills and WMMP requirements for waste minimisation). WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 26

32 Service level driven new works planned in the next ten years include: Landscaping at the Wairoa Landfill for a fire break estimated at $22k in total. Recycling Centre at Mahia estimated at $150k between 2018 and 2020 There are no growth driven new works projects identified for the Waste Management Activity for the period of this AMP. The construction of new cell at Wairoa Landfill will depend on the long term agreement with GDC (refer to Section 4.4). 6.5 DISPOSAL PLAN Disposal is any activity associated with disposal of a decommissioned asset, including sale, demolition or relocation. Asset disposal requires making the site safe, removing surplus structures, and covering the costs of any environmental remediation. These costs are generally included as part of the capital project. There are no Council waste management assets identified for disposal in the period of this AMP. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 27

33 7 FINANCIAL SUMMARY 7.1 FINANCIAL SUMMARY OVERVIEW The total amount of expenditure for operations and maintenance and capital over the next ten years is $15 million as shown in Figure 7-1 and detailed in Table 7-1. This shows that the total annual costs are relatively constant at about $1.5 million per annum before applying inflation. Operational expenditure is $14.5 million for the ten year total and makes up most of the total forecast at 97 per cent. Capital expenditure is for the Wairoa Landfill and Recycling Centre renewals, and new works are for landfill cover. Financial Forecast ($) 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , , / / / / / / / / / /28 Op/Main 1,376,211 1,379,290 1,428,413 1,437,211 1,467,866 1,527,562 1,523,322 1,558,490 1,619,414 1,626,438 Renew 20,000 20,440 20,880 21,340 21,840 22,340 22,880 23,460 24,040 24,660 Capex 130,000 51,100-5, ,849 8,051 Op/Main Renew Capex Figure 7-1: Summary of total ten year expenditure forecast WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 28

34 Table 7-1: Summary of total ten-year expenditure forecast DISTRICT WIDE FOR ACTIVITY YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 TOTALl 2018/ / / / / / / / / /28 10 Years OPEX 1,376,211 1,379,290 1,428,413 1,437,211 1,467,866 1,527,562 1,523,322 1,558,490 1,619,414 1,626,438 14,944,218 CAPEX RENEWALS 20,000 20,440 20,880 21,340 21,840 22,340 22,880 23,460 24,040 24, ,880 CAPEX NEW WORKS 130,000 51,100-5, ,849 8, ,929 TOTAL 1,526,211 1,450,830 1,449,293 1,464,480 1,489,706 1,549,902 1,546,202 1,581,950 1,651,303 1,659,149 15,369, EXPENDITURE CATEGORIES Expenditure types are defined and reported as follows: Operating expenditure is used to fund the ongoing day to day activities and services of the Council. It is expensed (not capitalised) work that continues the provision of services provided by assets. Operational activities include repairs and maintenance, security, utility costs (e.g. rates and power). Capital expenditure is used to replace existing deteriorated assets or components of assets to restore their remaining life and service potential. The Council has three categories of capital expenditure spread across its activities: Renewals Defined as capital expenditure that increases the life of an existing asset with no increase in service level. It replaces existing deteriorated assets or components of assets to restore their remaining life and service potential. Level of service Defined as capital expenditure that increases the service level delivered by the asset. Growth Defined as capital expenditure that is required to provide additional capacity in whole or part under Council s Development Contributions Policy necessary to accommodate growth. It is the capitalised works that add new or enlarged existing assets to increase the capacity to cater for further growth in demand. 7.3 OPERATIONAL EXPENDITURE SUMMARY The recommended ten year operational expenditure forecast is shown in Table 7-2 with $15 million forecast over the next ten years. The annual operational expenditure is constant at about $1.3 million per annum before inflation. Table 7-2: Summary of planned operational expenditure (as at 8 August 2017) WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 29

35 O & M EXPENDITURE FORCAST DIRECT ACTIVITY COST Wairoa Landfill and weighbridge admin operational costs Recycling centre operational costs Refuse collection costs Incidental clean ups - general and Mahia Waste levy payment YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 TOTAL 2018/ / / / / / / / / /28 277, , , , , , , , , ,105 3,061, , , , , , , , , , ,840 2,427, , , , , , , , , , ,740 1,875,440 25,000 21,420 18,720 26,550 27,150 27,775 28,400 29,075 29,800 30, ,440 65,000 66,300 67,600 69,030 70,590 72,215 73,840 75,595 77,480 79, ,080 Landfill monitoring 35,000 35,700 36,400 37,170 38,010 38,885 39,760 40,705 41,720 42, ,120 Litter bins and loose litter All dry goods collection Co- management costs 70,000 71,400 72,800 74,340 76,020 77,770 79,520 81,410 83,440 85, ,240 10,000 10,200 10,400 10,620 10,860 11,110 11,360 11,630 11,920 12, ,320 74,000 75,480 76,960 78,588 80,364 82,214 84,064 86,062 88,208 90, ,368 Maintenance costs 2,000 1,530 1,040 2,124 2,172 2,222 2,272 2,326 2,384 2,444 20,514 Asset management 20, , , , ,900 Waste minimisation education 10,000 9,180 8,320 10,620 10,860 11,110 11,360 11,630 11,920 12, ,220 WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 30

36 O & M EXPENDITURE FORCAST Wairoa Landfill - Aftercare fund INDIRECT ASSET COSTS Corporate overheads Rates, interest, loan repay and insurance YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 TOTAL 2018/ / / / / / / / / /28 5,000 3,060 2,080 5,310 5,430 5,555 5,680 5,815 5,960 6,110 50, , ,120 1,009,320 1,023,237 1,046,361 1,092,669 1,094,536 1,120,551 1,166,372 1,177,397 10,689, , , , , , , , , , ,267 2,635,938 50,892 60,802 62,432 63,044 63,597 64,033 64,505 65,010 65,861 66, ,120 Depreciation 103, , , , , , , , , ,027 1,069,096 TOTAL 1,376,211 1,384,433 1,435,345 1,444,665 1,476,002 1,536,244 1,532,563 1,568,303 1,629,814 1,637,635 15,021,216 Notes on the operational expenditure are: Opex costs likely to change from year 1 onwards with procurement process Wairoa voluntarily participate in the ETS additional daily cover costs added to landfill operations estimated at 20 per cent commodity price increase impact on recycling centre estimated at 15 per cent additional litter bin servicing estimated at $90k per annum from year 1 added new opex cost for Wairoa Landfill aftercare fund (estimated at $5k per annum) likely to have refuse collection costs through procurement process as bag sales will not be cost neutral in future (estimated at $56k per annum). 7.4 CAPITAL EXPENDITURE SUMMARY There is a total of $424,000 for capital expenditure for the next ten years as shown in Table 7-3. Capital renewal expenditure is for the Wairoa Landfill and Recycling Centre renewals, and new works are the recycling centre at Mahia and landscaping for fire breaks. The construction of new cell at Wairoa Landfill (estimated at $650k) has been excluded at this stage as filling rates too low. The new cell will only be will be justified if there is long term agreement with GDC that in turns justifies consent renewal. The outcome of this agreement with GDC will inform the 2021 Waste Management AMP and LTP. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 31

37 Table 7-3: Summary of planned capital expenditure (as at 8 November 2017) CAPITAL EXPENDITURE FORCAST RENEWALS Wairoa Landfill - road resealing WAIROA YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 TOTAL 2018/ / / / / / / / / /28 30,000 30,000 Landscaping - Fire break 5,929 7,849 8,051 21,829 Recycling Centre renewals NEW WORKS - GROWTH Recycling Centre Mahia NEW WORKS - LOS 20,000 20,440 20,880 21,340 21,840 22,340 22,880 23,460 24,040 24, ,880 50,000 20,440 20,880 27,269 21,840 22,340 22,880 23,460 31,889 32, , ,000 51, , ,000 51, ,100 TOTAL 150,000 71,540 20,880 27,269 21,840 22,340 22,880 23,460 31,889 32, ,809 Notes on the capital expenditure are: construction of new cell at Wairoa Landfill excluded at this stage as noted above road is resealed about every ten years. 7.5 REVENUE SUMMARY There is $485,000 revenue forecast per annum for the next ten years as shown in Table 7-4. This is based on the assumption that refuse bag sales are cost neutral (ie sales equals costs). However, the revenue forecast is likely to increase from 2019/20 with GDC rural refuse estimated at 700 tonnes but excluded from this AMP forecast as this stage. Table 7-4: Summary of revenue forecast (as at 8 November 2017) DISTRICT WIDE FOR ACTIVITY YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 TOTAL REVENUE FORECAST 2018/ / / / / / / / / /28 WAIROA LANDFILL 445, , , , , , , , , ,790 4,909,240 WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 32

38 USER CHARGES REFUSE BAG SALES WASTE DISPOSAL LEVY ,000-40,800-41,600-42,480-43,440-44,440-45,440-46,520-47,680-48, ,280 TOTAL 485, , , , , , , , , ,670 5,350,520 WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 33

39 7.6 IMPLICATIONS OF MEETING BUDGET LIMITATIONS The implications of meeting budget limitations, including justification for the expenditure forecast and consequences if the budget is reduced, are summarised in Table 7-5. Table 7-5: Justification for expenditure forecasts EXPENDITURE PROGRAMME OPEX CAPITAL RENEWALS CAPITAL NEW WORKS JUSTIFICATION To meet LOS for public health with regular collections Adequate reactive maintenance to keep assets functioning Adequate renewals to optimise life of assets Hardfill area landscaping and intermediate cover requirements for Wairoa Landfill to meet good practice and legislative requirements CONSEQUENCES IF BUDGET REDUCED Health issues with reduced collection service Wairoa Landfill may need to be closed from public access if they cannot meet consent requirements or are unsafe for public use. Non-compliance with consent conditions. Backlog created that may never be addressed adequately resulting in health and safety or environmental incidents Health and safety incidents involving the public, Council staff or contractors Environmental discharge and noncompliance with consent conditions. 7.7 FINANCIAL POLICIES AND FUNDING The Council waste management activity will be funded in accordance with the financial policies of Council as indicated below. However, Council wishes in future to balance the rates impact with a move to a user pays model as well as additional income from out of District waste (such as GDC). Table 7-6: Funding strategy for waste management PROGRAMME OPEX CAPITAL RENEWALS CAPITAL NEW WORKS FUNDING MECHANISM Funded through general rates, income received from user charges at the Wairoa Landfill and the waste disposal levy Provided by rates Funded by loans 7.8 ASSUMPTIONS AND CONFIDENCE LEVELS FINANCIAL ASSUMPTIONS The assumptions upon which the financial needs are based include the following: based on 2018/28 LTP budgets operational and capital forecasts are inflated based on the existing legislation, service levels and no growth based on information available and provided by Council s Property Manager and Engineering Manager the order of priority or call on funds by Council is generally: o o o operations and Maintenance renewals new works for service level improvement WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 34

40 o new works for growth CONFIDENCE OF FINANCIAL FORECASTS Considering the assumptions made in deriving the future financial needs of the service and asset needs and the historical levels of expenditure for the activity, the reliability of the financial forecast to deliver the current level of service is assessed as follows. Table 7-7: Confidence in financial forecasts INFORMATION TYPE EXPENDITURE PROJECTIONS DEGREE OF CONFIDENCE Medium COMMENTS The operational projections are largely based on historical operational budgets. There is a degree of confidence that the projections are based on appropriate budgeting and approval processes and represents the best available information. ASSET VALUES Low Asset values are based on the 2011 asset valuation. It has been identified that as an improvement project to revalue the waste management assets (refer to Section 8.3). DEPRECIATION Low The assessment of useful lives and the calculation of depreciation expense are undertaken with the asset valuation. FUNDING SOURCES Medium Most capital renewal expenditure will be funded by depreciation reserves. Opex is funded by rates and user charges. The funding model may change as noted above. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 35

41 8 PLAN IMPROVEMENT AND MONITORING 8.1 OVERVIEW ASSET MANAGEMENT COMMITMENT A key feature in Council s AM framework is to continue to improve its practices, processes and tools as shown in Figure 8-1. This is essential to ensure the asset system and services are effectively managed. Through the initiatives presented in this section, Council is committed to appropriate AM practices. This practice is being developed in keeping with the NAMS practice as presented in their suite of AM publications including the 2015 IIMM. Council is committed to delivering the most appropriate levels of service balanced with affordability and good industry practice. Assess Asset Management Performance Monitor Improvement Plan Identify Improvement Actions Deliver Improvement Plan Prioritise Actions and develop Improvement Plan Figure 8-1: Continuous Improvement Process CORE ASSET MANAGEMENT Council is committed to meeting core AM status for its waste management activity. This is the most appropriate for the scale, value and risk for this activity AM PRACTICES REVIEW An independent review was completed of the AM practices of the waste management activity by Morrison Low Consultants in August 2017 along with land transport and three water activities. The assessment was structured to align with the seventeen AM areas defined in the 2011 IIMM as part of the AM Maturity Assessment Model. The model is grouped into the following three elements to be consistent with the asset lifecycle and as shown in Figure 8-2: understand and define requirements lifecycle decision making. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 36

42 AM enablers. Understand and define requirements AM Policy And Strategy LOS Demand forecasting Asset register data Asset condition Risk management Lifecycle decision making Decision making Operational planning and reporting Maintenance planning Capital Investment Strategies Financial and funding strategies AM Enablers AM Teams AMPs Information systems Service Delivery Models Quality Management Improvement Planning Figure 8-2: Outline of AM Maturity Assessment Model. Overall Council scored at core level of maturity in the management of its waste management assets as measured by the AM Maturity Assessment Model as defined in the 2011 IIMM KEY IMPROVEMENTS The improvement opportunities described in this section have been identified throughout the development of this AMP. The most significant gaps were found in the asset data and risk management areas. The main improvement projects to be achieved in the next three years due to their priority and importance for achieving core AM for the waste management activity include: undertaking a formal valuation of the waste management assets developing a BCP for the potential loss of the Wairoa Landfill. 8.2 AM PRACTICES This section discusses the status of Council s current AM practices and identifies practices the organisation wishes to use. The key AM practices can be grouped into three broad areas. Processes Information Systems Data The necessary processes, analysis and evaluation techniques needed for lifecycle asset management The information support systems that support the above processes and which store and manipulate asset data Data available for manipulation by information systems to support asset management decision making Figure 8-3: AM practice areas DATA Data quality is important for end users so that they can have confidence in making an analysis using that data. Council does not hold a specific asset inventory for waste management assets. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 37

43 The development of a complete and sound asset inventory for the waste management activity is recognised as an improvement action. Council intends to use AssetFinda to record the asset inventory of its waste management activity PROCESS The key AM processes for the waste management activity are summarised in Table 8-1. Table 8-1: AM process summary AM PROCESS AREA PURPOSE STATUS/ENHANCEMENTS RISK MANAGEMENT FRAMEWORK For enterprise wide approach to ensure a comprehensive review of all potential risks across the whole organisation ASSET VALUATIONS Asset valuations are coordinated by Council s Finance Department SYSTEMS The current risk framework requires consolidation for consistency across all Council activities Asset valuation needs to be completed of the waste management inventory (refer to Section 8.3) Information systems are essential for storing and analysing asset information to make good AM decisions. The main AM information systems used for the Council waste management are summarised in Table 8-2. Table 8-2: AM systems summary AM SYSTEM PURPOSE STATUS/ENHANCEMENTS INTRAMAPS GIS system for Council to access information using networks maps and aerial photographs NCS The financial system used throughout Council ASSETFINDA 8.3 IMPROVEMENT PLANNING AssetFinda is Council s new AMS (excluding transport) for three waters and some parks assets A new GIS system is being procured regionally through the Hawke s Bay LASS No changes proposed at this stage Further develop AssetFinda for recording the waste management asset classes Key improvement programmes and associated projects have been developed through a review of the gaps in developing this AMP and issues identified. The three year improvement programme is summarised in Table 8-3. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 38

44 Table 8-3: Improvement plan summary table WAIROA IMPROVEMENT ASSET DATA RISK MANAGEMENT ASSET SYSTEMS ACTION Undertake a formal valuation of the waste management assets. Develop a complete asset inventory for the waste management activity. Develop a BCP for the potential loss of the Wairoa Landfill (it maybe in incorporated as part of Council s overarching BCP or separate plan). Implement AssetFinda as the asset inventory for the waste management activity. INDICATIVE FRAMEWORK PRIORITY RESPONSIBILITY 2018/19 High Property Manager and Finance Manager 2018/19 High Property Manager 2018/19 High Property Manager 2019/20 Medium Property Manager 8.4 IMPROVEMENT MONITORING The AMP is a living document and needs to be kept current and relevant. It is recognised that prioritises will change which makes review activities even more important to ensure this plan is a live document. The following review activities will be undertaken: Table 8-4: Monitoring and review of improvement programme FREQUENCY REVIEW TASK ACTION KPI THREE YEARLY AMP Development Formal adoption of the plan by Council 100% achievement REPORT NAME Council AMP report AUDIENCE Property Manager, Engineering Manager, LTP team, Council and Audit New Zealand ANNUALLY AMP review (internal) Revise plan annually to incorporate new knowledge from the AM improvement programme 100% achievement Internal report Property Manager and Engineering Manager THREE YEARLY AMP Peer Review The plan will be formally reviewed three yearly to assess adequacy and effectiveness 100% achievement External consultant report Property Manager, Engineering Manager, LTP team, Council and Audit New Zealand ANNUALLY Monitoring and Reporting The KPIs identified in this table will be monitored and reported on annually through Business Plans 100% achievement Business Plan report Property Manager and Engineering Manager QUARTERLY Implementation of the Improvement Programme Tracking the progress of implementing the improvement programme quarterly, particularly projects in the short term improvement programme 100% achievement Quarterly reports Property Manager and Engineering Manager WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 39

45 GLOSSARY WAIROA ACRONYM AMP AMS BCP DEFINITION Activity Management Plan Asset management system Business Continuity Plans ETS Climate Change (Emissions Trading) Amendment Act 2008 GDC HSNO Gisborne District Council Hazardous Substances and New Organisms Act HSWA Health and Safety at Work Act 2015 IIMM IPCC LCMP LGA LMP LOS LTP MfE NAMS NES RFS RMA International Infrastructure Management Manual International Panel on Climate Change Lifecycle Management Plans Local Government Act Landfill Management Plan Levels of Service Long Term Plan Ministry for the Environment New Zealand Asset Management Support National Environmental Standards Request for Service Resource Management Act WMA Waste Minimisation Act 2008 WMMP Waste Management and Minimisation Plan WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 40

46 This glossary is generally consistent with the International Infrastructure Management Manual Glossary (refer reference), which contains a larger range of items. The following terms and acronyms (in brackets) may be used in this Asset Management plan. Activity Advanced Asset Management Annual Plan Asset Asset Management (AM) Asset Management Plan (AMP) Asset Management System Asset Management Team Asset Register Capital Expenditure (CAPEX) Components Condition Monitoring Core Asset Management An activity is the work undertaken by Council to support and/or deliver services to the community. In the context of infrastructural assets, it is the work undertaken on an asset or group of assets to achieve a desired outcome. Asset management, which employs predictive modelling, risk management and optimised renewal decision-making techniques to establish asset lifecycle treatment, options and related long term cashflow predictions. (See Basic Asset Management) The Annual Plan provides a statement of the direction of Wairoa District Council and ensures consistency and co-ordination in both making policies and decisions concerning the use of Wairoa District Council resources. It is a reference document for monitoring and measuring performance for the community as well as Council itself. A physical component of a facility, or a collective or network of physical assets, which has value, enables services to be provided and has an economic life of greater than 12 months The combination of management, financial, economic, engineering and other practices applied to physical assets with the objective of providing the required level of service in the most costeffective manner. A plan developed for the management of one or more infrastructure assets that combines multidisciplinary management techniques (including technical and financial) over the lifecycle of the asset in the most cost-effective manner to provide a specified level of service. A significant component of the plan is a long-term cash flow projection for the activities. A system (usually computerised) for collecting analysing and reporting data on the utilisation, performance, lifecycle management and funding of existing assets. The co-ordinator or team appointed by an organisation to review and monitor the corporate asset management improvement programme and ensure the development of integrated asset management systems and plans consistent with organisational goals and objectives. A record of asset information considered worthy of separate identification including inventory, historical, financial, condition, construction, technical and financial information about each. Expenditure used to create new assets or to increase the capacity of existing assets beyond their original design capacity or service potential. CAPEX increases the value of an asset. Expenditure falls into two main categories Operational (or expensed) cost and CAPEX. Specific parts of an asset having independent physical or functional identity and having specific attributes such as different life expectancy, maintenance regimes, risk or criticality. Continuous or periodic inspection, assessment, measurement and interpretation of resulting data, to indicate the condition of a specific component so as to determine the need for some preventive or remedial action. Asset management which relies primarily on the use of an asset register, maintenance management systems, job/resource management, inventory control, condition assessment and defined levels of service, in order to establish alternative treatment options and long term cashflow predictions. Priorities are usually established on the basis of financial return gained by carrying out the work (rather than risk analysis and optimised renewal decision making). WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 41

47 Council Critical Assets Current Replacement Cost Depreciated Replacement Cost (DRC) Depreciation Disposal Economic life Facility Infrastructure Assets Level of Service (LOS) Life Life Cycle Wairoa District Council. Assets for which the financial, business or service levels consequences of failure are sufficiently severe to justify proactive inspection and rehabilitation. Critical assets have a lower threshold for action than non-critical assets. The cost of replacing the service potential of an existing asset, by reference to some measure of capacity, with an appropriate modern equivalent asset. The replacement cost of an existing asset after deducting an allowance for wear or consumption to reflect the remaining economic life of the existing asset. The wearing outs, consumption or other loss of value of an asset whether arising from use, passing of time or obsolescence through technological and market changes. It is accounted for by the allocation of the historical cost (or revalued amount) of the asset less its residual value over its useful life. Activities necessary to dispose of decommissioned assets. The period from the acquisition of the asset to the time when the asset, while physically able to provide a service, ceases to be the lowest cost alternative to satisfy a particular level of service. Economic life is at the maximum when equal to the physical life however obsolescence will often ensure that the economic life is less than the physical life. A complex comprising many assets (e.g. a hospital, wastewater treatment plant, recreation complex, etc) which represents a single management unit for financial, operational, maintenance or other purposes. Stationary systems forming a network and serving whole communities, where the system as a whole is intended to be maintained indefinitely at a particular level of service potential by the continuing replacement and refurbishment of its components. The network may include normally recognised ordinary assets as components. The defined service quality for a particular activity (e.g. Parks and Reserves) or service area (e.g. playgrounds) against which service performance may be measured. LOS usually relate to quality, quantity, reliability, responsiveness, environmental acceptability and cost. A measure of the anticipated life of an asset or component; such as time, number of cycles, distance intervals etc. Life cycle has two meanings: (a) The cycle that an asset (or facility) goes through while it retains an identity as a particular asset i.e. from planning and design to decommissioning or disposal. (b) The period of time between a selected date and the last year over which the criteria (e.g. costs) relating to a decision or alternative under study will be assessed. Life Cycle Cost Long Term Plan (LTP) The total cost of an asset throughout its life including planning, design, construction, acquisition, operation, maintenance, rehabilitation and disposal costs. The LTP provides a formal and public statement of Council s intentions regarding the parks and reserves activity over a period of not less than 10 consecutive financial years and provides for more community vision for the District. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 42

48 Maintenance Maintenance Standards NAMS New Work Objective Operation ODRC ORC Redundant Renewal Replacement Risk Management Strategic Plan Upgrading All actions necessary for retaining an asset as near as practicable to its original condition, but excluding rehabilitation or renewal. The standards set for the maintenance service, usually contained in preventive maintenance schedules and specifications, operation and maintenance manuals, codes of practice, estimating criteria, statutory regulations and mandatory requirements, in accordance with maintenance quality objectives. The National Asset Management steering Group responsible for the International Infrastructure Management Manual (IIMM). Also known as the NAMS manual Works, which create new assets or increase the capacity of existing assets beyond their original design capacity or service potential. New Work increases the value of the asset. An objective is a general statement of intention relating to a specific output or activity. They are generally longer-term aims and are not necessarily outcomes that managers can control. The active process of utilising an asset that will consume resources such as manpower, energy, chemicals and materials. Operation costs are part of the life cycle costs of an asset. Optimised Depreciated Replacement Cost the depreciated value of the optimised replacement cost used in determining optimised depreciated value. Optimised Replacement Cost the cost of replacing an existing asset with a more appropriate less expensive alternative used in determining replacement value. A system is redundant if it has a component, which, if it fails does not result in a complete loss of service, e.g. if one of two swings breaks, the service remains operational but at a reduced capacity. Works to upgrade, refurbish, rehabilitate or replace existing facilities with facilities of equivalent capacity or performance capability. The complete replacement of an asset that has reached the end of its life, so as to provide a similar, or agreed alternative, level of service. The application of a formal process to the range of possible values relating to key factors associated with a risk in order to determine the resultant ranges of outcomes and their probability of occurrence. Strategic planning involves making decisions about the long term goals and strategies of an organisation. Strategic plans have a strong external focus, cover major portions of the organisation and identify major targets, actions and resource allocations relating to the long term survival, value and growth of the organisation. The replacement of an asset or addition/replacement of an asset component, which materially improves the original service potential of the asset. Valuation Estimated asset value, which may depend on the purpose for which the valuation is required, i.e. replacement value for determining maintenance levels or market value for life cycle costing. WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 43

49 APPENDICES WAIROA Appendix 1: Appendix 2 Activity Risk Register Full LOS Table WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 44

50 APPENDIX 1 ACTIVITY RISK REGISTER WAIROA WAIROA WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 45

51 WASTE MANAGEMENT ACTIVITY MANAGEMENT PLAN 46 WAIROA