ashburton district council solid waste activity management ... and recy… · jan 2006 dennis...

Solid Waste Activity Management Plan 1

Ashburton District Council

Solid Waste

Activity Management Plan

December 2011

Version 1.3

To be developed and refined over time – with emphasis on finding more efficient and

effective, integrated and co-ordinated, ways of managing the local authority’s responsibilities

pursuant to:- The provisions of Schedule 10 of the Local Government Act 2002 (Community

Outcomes; Groups of Activities; Significant Negative Effects, Forecasting Assumptions, Uncertainties and Risks; and the Financial Requirements. For activities that involve infrastructural assets, no separate Asset Management Plan required).

The provisions of Sections 76 / 81 of the Local Government Act 2002 (Decision-Making)

and Sections82 / 90 (Consultation).

The provisions of the Waste Management Act 2008.

The provisions of Part 7 of the Local Government Act 2002 (Water Services and Sanitary

Services Assessments)

The provisions of Part 8 Subpart 5 of the Local Government Act 2002 (Development Contributions)

The provisions of the Health Act 1956

The requirements of Section 60 of the Civil Defence Emergency Management Act 2002 (Lifelines)

The Asset Management Guidelines in the International Infrastructure Management (‘NAMS’) Manual


PLAN STATUS

1. Overall Responsibility for the Co-Ordination of all Matters in this Plan

Date Name Designation

Feb 2009 Mark Gordon AECOM NZ

Jul 2011 Cheryl Coombs Solid Waste Manager

2. Prepared / Reviewed / Updated By

Date Name Designation

Jan 2006 Dennis Morgan Maunsell

Sep 2006 Mark Gordon Maunsell

Feb 2009 Dennis Morgan, Kelly Leers, Mark

Gordon

AECOM NZ

Dec 2011 Hock Yeo Opus International Consultants

3. Council Consideration

Date Minute No. Reason / Decision

4. Public Consultation

Date Form Of: (See Appendix ‘ for Details)

5. Plan Update and Review by Management

Date Record Of

U’


Table of Contents

Objectives of Solid Waste Activity Management Plan

Solid Waste Management Plan

1. Introduction

2 Levels of Service, Performance Measures and Relationship to Community Outcomes

3 The Existing Situation Described

4 Maintenance and Operating

5 Future Demand

6 New Capital Expenditure

7 Renewals Capital Expenditure and Depreciation

8 Funding the Annual Net Cost – ‘Who Pays’

9 Resource Consents / Property Designations

10 Demand Management

11 Significant Negative Effects

12 Private Solid Waste Disposal

13 Significant Forecasting Assumptions, Uncertainties and Risk Management

14 Solid Waste Bylaw

15 Plan Review / Public Consultation

16 Summary and Conclusions

17 Schedule of Proposed New Capital & Renewals Capital Works – Next 10 Years

Appendix A - Legislative and other Requirements and Relationships with other Planning

Documents and with other Organisations

Appendix B - Overview of Solid Waste Management

Appendix C - Assessment of Solid Waste Management

Appendix D - Asset Valuations

Appendix E - Maintenance and Operating Issues

Appendix F - Demand and Future New Capital Requirements

Appendix G - Development Contributions / Financial Contributions

Appendix H - Resource Consents / Property Designations

Appendix I - Future Renewals’ Capital Requirements

Appendix J - Depreciation / Decline in Service Potential

Appendix K - Likely Future Debt Requirements for the Activity

Appendix L - Future Overall Financial Requirements Summary

Appendix M - Funding Policy Plus Fees and Charges

Appendix N - Demand Management

Appendix O – Not Relevant

Appendix P - Significant Negative Effects

Appendix Q - Significant Forecasting Assumptions, Uncertainties and Risk Management

Appendix R - Levels of Service, Performance Measures and Relationship to Community

Outcomes

Appendix S - Organisational Structure, Solid Waste Management Practices, Data Systems and

Decision-Making Processes

Appendix T - Bylaws

Appendix U - Stakeholders and Consultation

Appendix V - Implementation and Improvement Programme


Appendix W - Disposals

Appendix X - References


Objectives of Solid Waste Activity Management Plan

The objective of this Solid Waste Activity Management Plan is to clearly and succinctly explain the

Council’s strategic and management approach for solid waste disposal.

The Plan has been prepared in a manner that enables it to be transferred directly into the Long

Term Plan.

The Activity Management Plan provides the support material for the LTP, and is intended as a

full record which will be continuously updated through the various appendices – there is a separate

appendix for every key strategic and management aspect of the activity.

Each appendix concludes with a summary of the strategic approach and of the management

approach to that particular issue. The strategic conclusions are then taken forward to the

Management Plan itself, and the management issues into an ‘implementation and management

improvement programme’ (see Appendix V).

The intention is that Council can be satisfied that it will form a major part of its ability to satisfy the

Council’s auditors in their audit of:-

“the quality of the information and assumptions underlying the forecast information provided (in

the consultation LTP for the year commencing 1 July 2012); and of

the extent to which the forecast information and performance measures provide an appropriate

framework for the meaningful assessment of the actual levels of service provision1.”

The audit has to be done before the consultation LTP is issued for the year commencing 1 July

2012.

The Plan will be an important and useful management tool that will be kept updated on a

continuous basis.

It is intended that the Plan will meet the following objectives:

a) Rationale for Council Involvement Clear

Makes the rationale for the organisation’s involvement in the particular activity clear.

b) Builds on the Existing Situation

Builds on the existing situation, and on the information that the Council already has – especially in

its Activity Management Plans.

c) No separate Asset Management Plans required.

All relevant information included in future in the Activity Management Plan.

d) Is Outcomes and Outputs Focussed

The Plan is outcomes and outputs focussed.

e) Helps to Substantiate that Legal Obligations Have Been Met

1 Sections 84 and 94 Local Government Act 2002


Enables the Council to readily substantiate that it has met its legal obligations and enables it to

satisfy all Audit (and, for instance, in the case of solid waste disposal – Ministry of Health)

requirements.

f) Strategic Approach Clear

Provides a clear statement for the elected representatives of the local strategic approach towards

the provision of the particular service, and of the levels of that service that it is aiming to provide (ie

a strategic plan) for the particular asset.

g) Public Able to Easily See and Understand ‘What the Council is Doing and Why

Produces an output that enables the public to easily and readily see and understand what the

Council’s strategic and management approach to the activity i.;

h) Expectations of Management Clear

Provides clear guidance for Council managers of what the elected Council’s expectations of them are.

i) Substantiates That the Direction and Priorities Have Been Robustly Decided

Provides clear evidence of the local authority having decided the District’s future direction, and its

development programme, in a robust manner.

j) Implementation and Improvement Plan Prepared

Produces an implementation and improvement plan for the Council’s managers, in a form that can

be easily integrated with the Council’s overall controls for management of the particular activity.

k) Separate Water and Sanitary Services Assessments Not Necessary

Avoids the necessity for the Council to prepare a separate water services assessment (for water

supplies, wastewater or stormwater) or for sanitary services (for public conveniences, cemeteries,

crematoria or waste disposal) – because that work would be done as a part of the relevant Activity Management Plan exercise

l) Separate Waste Management Plan

A separate Waste Management and Minimisation Plan has been prepared and complements this Activity Management Plan.

m) The Activity Management Plan Drops Directly Into the LTP

Avoids the necessity for the Council to do any further work (other than minor titivating) relating to

the activity that is the subject of the Activity Management Plan, for the long-term Council

Community Plan (or Annual Plan). In other words, it is formatted in a way so that the information in

it is able to be ‘dropped directly into’ t he Long Term Plan.

Summary of the Proposal’ Expedited

Is suitable for issue, without alternation, via the Special Consultative Procedure (ie it is written in a way so that a summary of the proposal (as is required by the new legislation) can be very easily

extracted from it).

o) Consistent With All Other Council Strategies and Other Plans

Is at all times consistent with all of the Council’s higher level strategic and other plans – especially

n) Preparation of ‘


the District Plan, Strategic Plans, and Catchment Management Plans (and the asset register).

p) Assists With Preparation of Development Contributions / Financial Contributions

Policy

Expresses the forecasted future capital costs in terms of ‘backlog / maintenance’ of existing levels

of service, ‘increased levels of service’, and ‘growth in order to support the Council’s Development

Contributions / Financial Contributions policy, as a routine step in the process.

q) Consistent With All Other Activity Management Plans

Is consistent with the Activity Management Plans for all other Council activities.

r) Funding Policy Included

Includes the Council’s Funding Policy for the Activity..

s) Able to be Progressively Developed and Enhanced

Is able to be gradually enhanced and developed, in stages, until the desired level of ‘advanced

activity (asset) management planning’ i s reached.

t) Able to be Kept Easily Updated

Is easily able to be kept continuously updated.

u) Avoids or Eliminates Unnecessary Duplication

Avoids or eliminates the unnecessary duplication that would otherwise occur in a variety of areas.

v) Encourages Continuous Improvement

Is not only able to be used by, but the method of its compilation encourages its use by, managers

as a working document and prime management tool to aid continuous improvement throughout the

year.’

w) Helps Newly Appointed Managers Become Productive Earlier

If passed to a newly appointed ‘Activity Manager’, would give that person a clear total picture of the

whole situation relating to the activities which he/she is to have responsibility for.

x) Establishes a Decision-Making Audit Trail

Will automatically result in there being a clear audit trail of the way that decisions have been made

(and the reason(s) for the chosen option) – a necessary requirement now pursuant to Section 77 of

the Local Government Act 2002.

y) Forces Stronger, more Co-ordinated and Focussed Management and Greater

Accountability

As a result of the way in which it has been ‘put together’ and is required to be updated, forces stronger and more co-ordinated and focussed management of the activity, and greater accountability – and makes the local authority focus less on the preparation of plans to meet statutory requirements, and more on more effective and efficient long-term management of the activity.


Solid Waste Management Plan

1. Introduction

1.1 Background

Territorial Local Authorities have a legal obligation under the Local Government Act of 2002 and the Waste Minimisation Act 2008, to promote effective and efficient waste management within their districts.

There is also a duty under the Health Act 1956 to improve, promote, and protect public health within their districts.

This implies in the case of solid waste disposal, that Councils have the obligation to identify where a service is required, to provide it directly themselves, to maintain an overview of the solid waste disposal activity if it is provided by others, and to show the community how it intends to provide the services.

The Ashburton District Council provides recycling and residual waste disposal facilities at Resource Recovery Parks at Ashburton and Rakaia. The Council also provides kerbside collection of solid waste and recyclables in Ashburton, Methven, Rakaia, Mayfield, Mt Somers, and Hinds. Recyclable resource drop off facilities are provided in Methven, Mt Somers, Willowby, Mayfield, Hinds, Hakatere Huts, Rangitata Huts and Pendarves. All landfills in the District have been closed and maintained under resource consent conditions. Residual waste from Ashburton, Hinds, Methven, Mayfield, Mt Somers and Rakaia is transported to the Regional Landfill at Kate Valley in the Hurunui District.

The Ashburton District Council is a shareholder (3%) in Transwaste Canterbury Ltd, a joint venture company with four other Canterbury Councils (47% shareholding), and Canterbury Waste Services Ltd (50% shareholding), which is 100% owned by Transpacific Industries Group (NZ) Ltd. The company has developed a regional landfill facility at Kate Valley, in the Waipara area of Hurunui District.

The District’s unrecoverable solid waste is transported to Kate Valley for disposal. The Council is committed to the regional landfill for the Canterbury region as providing the best means of providing a state of the art landfill facility for the region’s solid waste disposal in the most environmentally responsible way.

The purpose of this plan is to outline and to summarise, in one place, the Council’s strategic and management long-term approach for the disposal of solid waste from properties throughout the district whether they be provided by public or private means.

All of the figures for the LTP in this report are expressed in dollar values as at 1 July 2012, with no allowance for inflation, and unless stated to the contrary are GST exclusive.

Further information about each of the following matters is in the Appendices.


1.2 Community Outcomes to Which the Activity Contributes

The protection of the environment and community through the collection, recycling and disposal of solid waste contributes to achieving the following community outcomes:

a. A thriving and diverse local economy

• The infrastructure and services meet the current and future needs.

• The district is an attractive place to live, visit and do business.

• Council’s investments provide a return to ratepayers and contribute to economic development.

b. Sustainable natural and built environments

• People can access and enjoy our natural environments

• Understand the need to protect our natural environment and act to do so. • Have attractive built environments that meet our community’s needs • The community has access to information and services that promote environmental

responsibility and sustainability.

c. An enjoyable place to live • The community has access to a range of cultural and heritage facilities and activities. • The district has sporting and recreational facilities that meet the district’s needs. • The district offers opportunities for people of all ages to develop their skills and enrich their

knowledge.

d. A safe and healthy community • Access to a range of health and social support services. • The community’s environmental health is protected. • Well-prepared to respond to emergency situations.

1.3 Activity Goal and Principal Objectives

The Solid Waste Management Activity goal is:

To provide a cost effective range of waste management services and facilities that contributes to sustainable management, conservation of resources and protection of the community and the environment.

The Councils’ activity objectives are:

a) To provide the community with safe, convenient and effective solid waste services that

contribute to the overall wellbeing of the district

b) To provide recycling, reuse and waste management services and facilities that are sustainable, minimise impact on the environment and that meet requirements of the Resource Management Act 1991

c) To develop and maintain effective relationships with regional and national resource

management agencies


2 Levels of Service, Performance Measures and

Relationship to Community Outcomes

2.1 Waste Management and Minimisat ion Plan

The Council adopted its “Waste Management Plan for Solid and Hazardous Waste” i n December1999 and was reconfirmed by Council in 2005. This Plan was subsequently reviewed in 2011 and revoked as it did not comply with the Waste Minimisation Act 2008. A new draft Waste Management and Minimisation Plan has been prepared in 2011 and is currently out for public consultation.

The Plan’s vision for the future is “working towards Zero Waste by providing and maintaining solid waste and recycling facilities and services, these will contribute to community outcomes of:

• supporting a thriving and diverse economy;

• contribute to a healthy community; and

• contribute to sustainable lifestyles and minimise environmental impacts.

These will in turn assist Council in reaching their overall vision for the District, which is Ashburton: District of Choice for Lifestyle and Opportunity.”

The main goals of the Plan are to develop the most cost effective range of waste management services possible with the aim of ensuring sustainable management, conservation of resources and protection of the environment and public health.

The objectives of the Plan are to:

· Work towards an aspirational goal of zero waste in both urban and rural communities.

· Ensure suitable cost effective collection and disposal systems exist which minimise the risks to the environment and community.

· Achieve responsible and informed decisions on solid waste management by the community.

2.2 Service Targets and Performance Measures

Performance in achieving outcomes and key levels of service is monitored using the following

measures:

Rationale

Levels of Service Performance Measures

To contribute to sustainable

management, conservation of

resources and protection of our

community and environment.

Protect the community and

environment from the effects of

harmful waste and promote

waste minimisation

Reduce the volume of waste per

rateable property being

disposed of to landfill

Increase the percentage of

recyclable or reusable material

diverted from the waste stream

Compliance with resource

consent conditions relating to

Closed Landfills and Resource

recovery park operations.


Rationale

Levels of Service Performance Measures

Kerbside collection service

meets customer’s needs

Residents receiving kerbside

rubbish collection are satisfied

with the service (Annual

Residents Survey)

Residents receiving kerbside

recycling collection are satisfied

with the service (Annual

Residents Survey)

Table 2-1 Performance Measures


3 The Existing Situation Described

3.1 Solid Waste Services and Facilities

3.1.1 Kerbside collection of refuse

The Council provides a weekly residual waste collection in black prepaid bags in the urban areas of Ashburton, Methven, Rakaia, Hinds, Mayfield, and Mt Somers. The residual waste is transported to the Ashburton Resource Recovery Park and compacted into special freight containers for transport and disposal to the Canterbury Regional Landfill at Kate Valley in Hurunui District.

The kerbside refuse collection extends to industrial and commercial properties.

3.1.2 Kerbside recycling collection

Kerbside collection of recyclable resources is carried out weekly in Ashburton, Methven, Hinds, Mount Somers and Mayfield using 45 litre plastic crates. Up to four recycling crates may be placed outside each residential property. The first recycling crate is provided “free” to householders and additional crates are provided by Council at the cost to produce the crates. The recycling collection is sorted by hand at the kerbside into:

• Plastics

• Steel cans

• Aluminium cans

• Paper

• Cardboard

• Glass (green/brown/clear)

The kerbside recycling collection extends to industrial and commercial properties.

Recyclable resources are taken to the Ashburton RRP for further processing.

In Rakaia recyclable resources are collected weekly at the kerbside using the official blue (dry) bag, and transported to the Rakaia RRP for sorting by volunteers.

3.1.3 Kerbside collection of Green and Household Organic Wastes

Green and household organic waste is collected weekly only in Rakaia using the official green (wet) bag and transported to the Rakaia RRP for processing.

3.1.5 Resource Recovery Parks in Ashburton and Rakaia

Resource recovery parks (RRPs) are located in Ashburton and Rakaia. The Ashburton RRP is operated under contract to Council. At the Rakaia RRP recyclable resources, except glass, are processed and managed by the Rakaia Community Association volunteers and general operation of the facility is carried out under contract to Council. Under current contracts all resources deposited at the Ashburton RRP become the property of the operator. At the Rakaia RRP, the resources except glass become the property of the Rakaia Community Association.

Activities at the Ashburton RRP comprise:

• Drop-off for all re-usable items and recyclable resources.

• Re-use retail outlet for all collected reusable items (excludes electrical goods).

• Sorting, baling and sale of recyclable resources collected from the kerbside collection, drop-off facilities, or dropped off at the RRP.

• Collection of electronic waste including computers, monitors, keyboards, printers and


televisions.

• Green waste drop-off.

• Green waste composting (including green waste from Methven), and sale of product.

• Drop-off, sorting and sale of construction and demolition waste, including concrete/brick crushing for aggregate, steel recovery and sale of re-usable items.

• Collection of waste oil.

• Education services and school programme.

• Residual waste collection and transfer to Kate Valley Landfill.

• Domestic hazardous waste drop-off for small amounts of household hazardous waste.

The contractor is incentivised to recover resources from the residual waste and is paid monthly for tonnages recovered from the residual waste stream.

Activities at the Rakaia RRP comprise:

• Drop-off for re-usable items and recyclable resources

• Sorting, baling and sale of recyclable resources collected from the kerbside collection, or dropped off at the RRP.

• Green waste drop-off

• Green waste composting and sale of product.

• Refuse drop-off for transfer to Ashburton RRP.

3.1.6 Recycling drop-off facilities

Un-manned recycling drop-off facilities are located in Mayfield, Mt Somers, Willowby, Hinds, Hakatere Huts, Rangitata Huts and Pendarves. These drop-off facilities receive:

• Cardboard

• Paper

• Aluminium and steel cans

• Glass bottles.

Methven has one main recycling drop-off facility and a CBD recycling station which accept the following materials

• Cardboard

• Paper

• Aluminium and steel cans

• Glass bottles

• Plastic

Methven also has a facility for the drop-off of household items for recycling or reuse, and a separate greenwaste and inorganic resources drop-off facility.

3.1.7 Education

Council has contracted out education services in relation to solid waste management and minimisation. The education services provided comprise:

• Operating the education centre at the Ashburton RRP

• Working with schools

• Working with community groups

• Working with businesses

• Displays at shows or events

• Telephone helpline

• Press releases each month on waste issues.

3.1.8 Solid Waste Volumes


Volumes for the last two financial years are summarised in the following table:

Residual waste

Tonnes

Recyclable resources

Tonnes

C&D Waste Tonnes

(3)

Green Waste Tonnes

Total Diverted %

2004/05 7,609 (1)

2,349 - 1,629 (1)

34.3

2005/06 7,537 (1)

2,621 - 2,082 (1)

38.4

2006/07 7,895 (1)

3,140 - 2,749(2)

42.8

2007/08 8,056 (1)

3,973 - 2,133 (2)

43.1

2008/09 8,837 (1)

4,736 - 1,473(2)

41.3

2009/10 8,375 4,649 - 1,880 (2)

43.8

2010/11 8,061 4,321 1,181 (2)

40.6

Notes:

(1) Data obtained from Ashburton District Council Solid Waste Activity Management Plan, March 2009, Version 3.

(2) Tonnages for greenwaste have been derived from cubic metres of greenwaste shredded and calculated back into tonnes (3.058 m

3/t). The 2010/11 figure is based on 3 months of calculated

tonnage and 9 months of actual recorded tonnes.

(3) Tonnages of C&D materials were not recorded prior to July 2010.

(4) The data presented in this table excludes recyclable materials collected in Rakaia

Table 3-1 Composition of Waste(4)

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11

Cardboard 514 545 627 680 719 1169 788

Paper 739 849 885 989 1016 880 1379

Steel & Cans 75 77 53 63 59 52 24

Al Cans 13 13 12 13 12 13 3

Batteries 2 7 12 10 9 6 0

Other metals 97 29 80 179 216 208 200

PET Plastics 42 50 44 64 70 53

HDPE plastics 34 42 52 54 56 55

Glass 557 490 649 817 1456 1098 1136

Reusable items 249 482 680 923 941 1008 470

Plastic film & bags

27 37 38 64 38 41

Mixed Plastic 8 117 144 66 320

TOTAL 2349 2621 3140 3973 4736 4649 4321

Note:


Tonnes of reusable items prior to 2010/11 are calculated from sales. From October 2010 actual tonnage is recorded. The most recent data is thus not directly comparable with earlier data.

Table 3-1 Breakdown of recyclable resources (tonnes)

Solid waste facilities in the district are located as follows:

SITE RESIDUAL WASTE

GREEN WASTE

INORGANIC WASTE

RECYCLABLE WASTE

HOUSEHOLD ORGANIC WASTE

Ashburton

Methven

Rakaia

Mayfield

Mt Somers

Willowby

Hinds

Hakatere Huts

Rangitata Huts

Pendarves

3.2 Closed Landfills

Ashburton, Methven, Rakaia, Hinds and Mayfield landfills are closed. Resource consents have been obtained for all of these and all are subject to ongoing monitoring and aftercare in accordance with consent conditions and Post Closure Management Plans.

3.3 Private Solid Waste Disposal

Businesses offering private collection of solid waste in the Ashburton District Council area include:

· Regular Rubbish Removals

· Dial a Drum

· Gary McCormick Transport

· Rakaia Community Association

· Total Bin Supplies

· Mastagard Group

· WasteBusters Trust Canterbury

The Council’s Resource Recovery Park’s are used for disposal. Solid waste may also be disposed of on private rural properties by composting or burning. The Council’s bylaws and rules in Ecan’s Natural Resources Regional Plan regulate this activity.

3.4 Asset Valuation

The most recent valuation is summarised in Table 3.3 below.


Table 3.3: Solid Waste Asset Valuation (1 July 2011)

3.5 Current and Future Issues

A Waste Assessment was undertaken and this identified the following District issues with respect to waste management and minimisation:

There is limited waste data on waste composition making it difficult to identify waste streams to target for further diversion

Disposal of Construction & Demolition (C&D) waste and cleanfill is not reliably quantified and requires a suitable site for the temporary storage and processing of material prior to disposal.

The Ashburton Resource Recovery Park (RRP) has operational, maintenance and storage issues that need to be addressed.

There is still significant non-compliant materials being disposed of in refuse and recycling receptacles.

A review of the existing 45 litre recycling crate capacity should be undertaken to determine if a larger crate/bin would be more effective in diverting more recyclable /reuse materials.

Educating and enthusing the public regarding the importance of separating recyclable and reusable materials from refuse to reduce contamination of the different waste streams.

Management of organic and putrescibles in urban communities. Uncertainty over government climate change policies, carbon prices and the continual

changes in the emission trading scheme.

A list of specific actions have been identified in the Action Plan of the Waste Management and Minimisation Plan to address the above issues.

ASSET TYPEORC

1 July 2011

ODRC

1 July 2011

Depreciation to

Date

Annual

Depreciation

1 July 2011

Rakaia Resource Recovery Park $444,415 $350,286 $94,129 $13,261

Ashburton Resource Recovery Park $1,999,416 $1,613,138 $386,278 $55,927

Methven Recycling drop-off area $74,239 $62,267 $11,973 $4,309

Mayfield Recycling drop-off area $5,792 $3,280 $2,512 $442

Hinds Recycling drop-off area $2,036 $1,425 $611 $204

Recycling $22,564 $22,564 $0 $1,062

Ashburton and Tinwald Litter Bins $216,770 $38,891 $177,880 $16,719

Mayfield Litter Bins $829 $829 $0 $83

Methven Litter Bins $28,302 $7,129 $21,173 $2,164

Rakaia Litter Bins $20,239 $6,268 $13,971 $1,721

Rakaia Huts Litter Bins $0 $0 $0 $0

Hinds Litter Bins $9,694 $3,197 $6,497 $944

Mt Somers Litter Bins $6,914 $1,379 $5,536 $628

$2,831,210 $2,110,651 $720,559 $97,464


4 Maintenance and Operating

4.1 Ownership and operation

The Council has a number of contracts which cover the solid waste facilities, collection and disposal services in the District. These are all performance based contracts with clear outcomes as set out in the contracts. In addition to the contractors, a volunteer group assists with the running of the recycling activities at the Rakaia Resource Recovery Park.

Site Activity Contractor

Ashburton RRP Operation of RRP Mastagard Ashburton Ltd

2010/15

Operation of recycling resources drop-off facility

Mastagard Ashburton Ltd

2010/15

Operation of education centre Mastagard Ashburton Ltd

2010/15

Operation of greenwaste and demolition materials activities


2010/15

Methven RRP Operation of recycling resources drop-off facility


2011/15

Greenwaste and inorganic Materials Drop off Facility

Minor Maintenance Contractor 2011/15

Rakaia RRP Operation of RRP Minor Maintenance Contractor 2012/15

Operation of recycling centre Minor Maintenance Contractor & Rakaia Community Association

Kerbside collection services in towns

Residual waste G Preston & Son 2009/12

Recycling collection G Preston & Son 2009/12

Household organic waste (Rakaia only)

G Preston & Son 2009/12

Transport waste to Kate Valley Landfill

Waste collected at Ashburton and Rakaia transported to Kate Valley

Transwaste Canterbury Ltd 2015

Table 4.1: Solid Waste Contracts

The contract activity is shown in Table 4.1, and most of these contracts are long term (3 years or more) to obtain the best prices for this work.

In accordance with the Ashburton District Council’s shareholding in Transwaste Canterbury Ltd, residual solid waste from Ashburton, Rakaia, Mount Somers, Mayfield, Methven, and Hinds is transported to the Kate Valley Regional Landfill in Hurunui District. In regard to this a contract has been let to Transwaste Canterbury Ltd for the period to June 2015 for transport to Kate Valley.

The estimated annual cost to transport and dispose of residual waste is the cost per trip plus cost to dispose per tonne multiplied by estimated tonnage. In 2010/11 8061 tonnes was transported out of the district for disposal.

The Council owns the recyclable resource drop off facilities and Resource Recovery Parks in the District, and some land at Ashburton is leased from Environment Canterbury.

A domestic hazardous waste drop off facility is situated at the Ashburton RRP. Only domestic quantities are received. The facility is a purpose built shelter on a bunded concrete pad in a


lockable compound. Resource consents were obtained from Ecan and ADC. Staff are specially trained and hold approved handler certificates.

A dividend from Transwaste Canterbury Ltd is expected to be paid to the Council annually as the Council is a shareholder in the regional landfill. This accrues to the Council’s Dividend account. Since July 2009, a waste levy of $10 per tonne of refuse to be disposed at the Kate Valley Landfill, has been collected for waste minimisation purposes.

On 6 September 2004 the Canterbury Waste Subcommittee passed a resolution to implement a shared transport cost arrangement whereby Christchurch City Council, Banks Peninsula District Council (since amalgamated with Christchurch City) and Waimakariri District Council proportionally (based on population) contribute towards the transport costs for waste sent to Kate Valley landfill by Ashburton and Selwyn District Councils. By agreement the Hurunui District Council, as host council to the landfill, is not part of the cost share arrangement, the purpose of which is to ensure that communities further away from the landfill are not disadvantaged through higher transport costs.

The agreed mechanism for payments to Ashburton and Selwyn councils is via a request by the Joint Committee to Transwaste Canterbury Ltd to adjust the company’s final dividend payments (to be declared) accordingly – i.e. to reduce the Christchurch and Waimakariri Council’s dividend payments and to increase the Ashburton and Selwyn Council’s dividend payment based on agreed rules.

4.2 Maintenance and Operating Costs

The total estimated operations and maintenance costs for solid waste activities is summarised in

Figure 4.1.

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Exp

en

dit

ure

($)

Year

Estimated O&M Costs - Solid Waste Collection

OPEX Depreciation Overhead charges


Figure 4.1: Maintenance and Operating Forecasts (no inflation)

4.3 Business Continuity / Emergency Management

The Ashburton District Civil Defence Plan 2005-2010 provides under Public Health arrangements liaison with the Council’s solid waste services in advising residents on disposal of waste during a civil defence emergency.

This Plan is under review in 2011.

The Council is also developing systems (Emergency Response Plan) which outline procedures enabling the continuation of solid waste disposal (possible at a reduced level) during a major breakdown or civil defence emergency.

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000E

xp

en

dit

ure

($)

Year

Estimated O&M Costs - Solid Waste Management

OPEX Depreciation Overhead Charges


5 Future Demand

Ashburton District Council has a target to achieve zero waste by 2015. It is recognised that this is an aspirational target that is unlikely to be achieved without the commitment of significant resources and funding. The current plan will not achieve zero waste by 2015 but, in the spirit of this objective, ongoing advances in waste minimisation are proposed. Furthermore, minimising the waste being transported to landfill will generally reduce overall costs to council, mainly due to the high transport and disposal costs to the Canterbury Regional Landfill at Kate Valley.

Ashburton District Council uses the “high” population forecast series in its growth modelling for the future as it best reflects:

• Current strong population growth in the district

• Continued change in land use with increased on-farm residences

• Expected migration from Christchurch due to the recent earthquakes (based on current anecdotal evidence)

• Consistency with Ashburton District residential building consent trend analysis over the past five years (which indicates the district’s population has grown by approximately 2,500 people since 2006 – closest to the high series forecast).

It is considered that the “high” series provides a prudent assessment of future increased demand through population growth. Ashburton District’s population looks set to continue this growth over the next ten years, reversing earlier trends of low or no growth.

The rate of projected growth varies across the district, with Methven expected to be the fastest growing urban centre over the next 20 years, growing at an average rate of 2.7% per year. The rural population is also projected to grow at a faster rate than the Ashburton urban area.

Waste minimisation legislation passed into law in 2008 aims at reducing waste through product Stewardship, a national waste levy, and waste minimisation initiatives.


6 New Capital Expenditure

6.1 Proposed Future Capital Works Programme

The Council intends to develop current sites to improve the way that recyclables and greenwaste

are treated.

In 2011/12 a study is planned regarding the collection and processing of foodwaste (putrescibles).

After the successful survey carried out late 2005, it is likely that the Council will provide funding for

foodwaste collection and processing in 2013/14. This is expected to be the only major capital cost

item.

Significant improvements are planned across the 10 year period at the Ashburton RRP, $209,000

has been budgeted for putrescibles, site development and demolition and construction.

$25,215 of new capital has been identified for installation of litter bins at Ashburton, Methven,

Rakaia, Hinds, Mt Somers and Mayfield across the 10 year period.

In addition, upgrades at both Methven and Rakaia RRP are proposed. This includes future

development of the recycling drop off at Methven to allow receipt of demolition and green waste in

2010/11 & 2011/12. Additionally the Vaughans Rd site requires beautification in 2012/13. At

Rakaia a new container and further site development is planned.

Aftercare of ARRP is required as part of Ecan’s post closure requirements.

An overview of the new capital budgets can be seen in table 6.1 and figure 6.1. A further

breakdown of the budgets can be seen in appendix F.


Table 6.1: New Assets (excluding growth renewals)

Future New Capital

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

Year

Figure 6.1: New Assets (no inflation)

6.2 Capital Works Policies

The Council considers service, functionality, price, availability, reliability and maintenance requirements when developing or acquiring new assets.

6.3 Other Capital works Issues

There are no planned calls on capital from Transwaste Canterbury Ltd for the operation of the Landfill Site.


7 Renewals Capital Expenditure and

Depreciation

Renewals identified can be seen in table 7.1. Replacement of litter bins in Ashburton has phased

across the 10 year period. Resealing at both Ashburton RRP and Rakaia RRP is planned. Landfill

aftercare and beautification is also planned for both Ashburton and Rakaia. Security/fencing

upgrades are planned in 2009/10 at ARRP.

The cost of asset renewal work carried out is sourced from depreciation. If this funding is not

sufficient to cover the cost of works, then loan funding is used. Figure 7.1 shows the trends in

funding from deprecation and renewals expenditure, demonstrating that in 2017/18 renewals

expenditure exceeds income from depreciation (the level at which decline in service potential is

funded).

Total Depreciation and Service Potential

100,000

50,000

0

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

-50,000

-100,000

-150,000

Year

Depreciation Renewal Expenditure Service Potential

Figure 7.1: Cumulative Depreciation and Service Potential 2009/2019

Figure 7.1 shows that the depreciation provision significantly exceeds the renewals provision over

the 10 year period – largely because the assets are new and not yet due for renewal. The

accumulation of lost service potential indicates a growing renewal liability in future years.


Table 7.1: Asset Renewals


8 Funding the Annual Net Cost – ‘Who Pays’

8.1 Funding Sources

Capital Value General Rate is used to fund District-wide benefit accruing through the provision of the service. Capital Value Targeted Rates are used to fund benefit accruing to specific areas within the District.

A Capital Value rating mechanism is considered appropriate to reflect stakeholder community interest and the ability to pay. Uniform Charges are used to reflect equal benefit accruing to each property owner.

More detailed information on the funding regime and rationale are contained in the Council’s Revenue and Financing Policy.

The Solid Waste Management activity is funded from the following sources:

8.1.1 Solid Waste Management

· Fees and Charges (60%)

Solid waste management and disposal has a considerable private benefit in providing a convenient place to recycle or dispose of unwanted refuse. This benefit is assessed as high at 60% and is recovered through user pays fees and charges.

· Capital Value General Rate (40%)

District wide benefit accrues to the community through knowing that refuse is being managed in a coordinated, safe and environmentally acceptable way. This benefit is assessed as medium and set and is recovered through a Capital Value General Rate.

Capital Value is used for the funding mechanism because the benefit relates to the community as a whole and is deemed to have a property related benefit.

8.1.2 Solid Waste Collection


There is a private benefit to people receiving a solid waste and recycling collection service. The benefit is excludable and measurable and therefore highly rival (more waste means more cost). There is a clear case for the “user pays” principle to be applied. This benefit of kerbside collection is assessed as being high and is recovered through rubbish bag sales.

· Targeted Uniform Annual Charge (40%)

The recycling service costs will be allocated to each town on a group basis (with each property within the group paying a uniform charge) according to the costs of providing the service in each respective town irrespective of the amount of recyclable material collected.

· Capital Value Targeted Rate (10%)

The litter bin service will be paid for through a Capital Value Targeted Rate on CBD/ Commercial ratepayers in Ashburton, and Commercial/ Industrial ratepayers in Methven and Rakaia as it is considered that businesses benefit from the provision of this service.


8.2 Statement of Financial Performance

The overall financial summaries, including expenditure and income, are provided in Table 8.1.


Table 8.1: Financial Summaries Solid Waste Collection & Management


9 Resource Consents / Property Designations

Under the Resource Management Act 1991, Councils must protect the life supporting capacity of air, water, soils, and ecosystems: generally by regulating the effects of human development on the environment.

Current Resource Consents relating to Solid Waste Management are included in Appendix H.

Property Designations are shown within the District Plan (Schedule A.1 Nos 132 to 138).

10 Demand Management

The Council has developed programmes as required by the Waste Minimisation Act 2008 for the following hierarchy of disposal options:

· Reduce

· Reuse

· Recycle

· Recovery

· Treatment

· Disposal

Waste minimisation education is being implemented on behalf of the Council by Mastagard Ashburton Ltd.


Waste generation will increase with economic and population growth. With waste minimisation measures in place, it is possible to reduce the waste per capita produced, and coupled with the rising cost of waste disposal to landfills, the upward trend in waste generation may be able to be slowed down. Reduction in overall waste generation may require more drastic waste minimisation measures to be undertaken.

10.1 Pricing

The Council uses pricing for solid waste disposal and bags which link waste volume to cost. Those who dispose of solid waste are charged a greater portion of the cost of disposal.

11 Significant Negative Effects

Solid Waste disposal has the potential to cause significant negative environmental effects.

This activity has to be carried out to limit environmental effects as set out by the various consents, so the District has no alternative but to accept the associated costs. Every effort will be made in future years to determine ways and means to reduce the cost of managing solid waste.


12 Private Solid Waste Disposal

Private solid waste collection contractors operate within the District, using the Ashburton RRP for disposal.

13 Significant Forecasting Assumptions,

Uncertainties and Risk Management

Future volumes of solid waste are difficult to predict accurately due to the uncertainties in population changes, economic growth, and changes in and timing of recycling collections in parts of the District.

The assumptions used when preparing this activity plan are as follows:

· There is no provision for inflation in cost forecasts.

· The Council will continue to be involved in the provision of solid waste services within the District.

· The Council will be able to obtain the necessary resource consents.

- Forecasts are based on the best available knowledge of asset condition and performance, and on the levels of service identified in the 2012/2022 Long Term Plan.

· A waste assessment was undertaken in 2011 and projected waste generation has been estimated for the next five years.

· The market for recyclable/ reusable products is changeable and there will be variations in the contribution that the sale of these items makes to the operating costs of contractors.

· The true value of the asset (and the amount that has to be set aside annually for depreciation) can be expected to become more accurate as the Council’s knowledge of this improves.

· In preparing the maintenance and operating budget it is assumed that there will be no change to the method of service delivery. However as a result of the review of Action Plan items in the Waste Management and Minimisation Plan, changes to service delivery may be possible.

· As historical expenditure profiles are developed, trends in maintenance and operational costs can be developed. In turn, this will enable improvement in the accuracy of the projections contained in this plan.

· The Council will be able to continue to dispose of residual solid waste at the Kate Valley

landfill site, subject to terms and conditions that are acceptable.

14 Solid Waste Bylaw

The Solid Waste Bylaw came into effect on 1 July 2008 and must be reviewed before 1 July 2012. Sections 145 and 146 of the LGA 2002 specifies the bylaw making power for waste management covering:

· Prohibited activities

· Household refuse

· Disposal of refuse

· Restriction on collection

· Commercial refuse

· Street litter bins

· Approved containers

· Refuse collection

· Ownership of refuse

· Recycling

· Hazardous waste

· Penalty


There is a Policy document attached to the Bylaw which deals with the fine detail of:

· Placement of containers for emptying

· Control of refuse disposal sites

· Recyclables on refuse disposal sites

15 Plan Review / Public Consultation

The approach that has been outlined herein will be updated on a continuous basis as circumstances change, and will be comprehensively reviewed at intervals of no less than three years via the Special Consultative Procedure.

16 Summary and Conclusions

Ashburton District Council will continue to promote waste management and minimization within the Ashburton District by providing a range of services and facilities that are cost effective, contribute to sustainable management, conserve resources and protect our community and environment.

District specific issues to meet forecast demands have been identified and addressed in the Waste Management and Waste Minimisation Plan 2011 establishing Councils intention for forward works and services that inform the capital work programme of this plan.

Similarly the national waste levy will provide additional support to aspire towards zero waste and puts great importance on education and encouraging the support of waste minimization in the community.

Solid Waste activities are working strongly toward achieving community outcomes relating to a thriving and diverse local economy, sustainable natural and built environments, an enjoyable place to live and a safe and healthy community.


17 Schedule of Proposed New Capital &

Renewals Capital Works – Next 10 Years


Solid Waste Total Expenditure (Collection &

Management)

120,000

100,000

80,000

60,000

40,000

20,000

0

Year

Asset Additions Asset Renewals Loan Repayment

Figure 16.1: Total Costs Next 10 Years (no inflation)

Solid Waste Activity Management Plan

Appendix A – Legislative and Other Requirements 34

Appendix A - Legislative and other

Requirements and Relationships with

other Planning Documents and with other

Organisations

REFERENCE / REASON:- INTERNATIONAL INFRASTRUCTURE MANAGEMENT MANUAL

GUIDELINES

The legislative and planning requirements which the Ashburton District Council is required to

comply with when carrying out solid waste management, maintenance, and capital improvement

activities, are extensive. The requirements include the following:

A- 1 Legislative Requirements

· Local Government Act 2002.

· Local Government (Rating) Act 2002.

· Health Act 1956.

· Resource Management Act 1991.

· Civil Defence Emergency Management Act 2002.

· Health and Safety in Employment Act 1992

· Building Act. 2004

· Waste Minimisation Act 2008

A- 2 National Planning Documents and Standards

· Government’s Sustainable Development Action Plan.

· New Zealand Standard SNZHB 4360:2000 ‘Risk Management for Local Government’.

· Management of Healthcare, Waste NZS4304:2002

· Emergency Operations Centre Guidelines 2007

· NZS3910:2002 Conditions of Contract for Building and Civil Engineering Construction

· Resource Recovery Park Design Guideline

· National Energy, Efficiency, Conservation Strategy 2001.

· New Zealand Waste Strategy 2010.

· Health and Safety in the Waste Industry (2006)

· Waste Management in NZ. A Decade in Progress.



A- 3 Regional Planning Documents

· Constituting Agreement: Canterbury Waste Joint Committee

Canterbury Landfill Joint Committee

· Regional Policy Statement

· Natural Resources Regional Plan

· Transwaste Canterbury Ltd Statement of Intent 2012

· Transwaste Canterbury Memorandum of Understanding

· Hazardous Waste Reference Guide 2006

· Assessment of Regional Waste Minimisation Options 2006 - 10

· Canterbury Regional Waste Data Technical Report (2002 – 2008)

A- 4 Council Planning Documents

· ADC Draft Waste Management and Waste Minimisation Plan (2011) for public consultation

· Ashburton District Plan.

· Ashburton Development Plan (July 2005)

· Council’s Engineering Design Standards for Subdivisions and Development.

· Business Plans, including budgets, management strategies and performance measures.

· Contract documents, specifications, service levels, and reporting requirements.

· Bylaws, Standards and Policies.

Activity Management Plans support the LTP. The LTP outlines programmes in detail over

the next three years and an outline over the subsequent seven years. The LTP will be updated

every three years. The current review is being undertaken for –2012 – 2021.

A- 5 Relationships with Other Organisations

Key stakeholder organisations are listed in Appendix U. Those with whom the Council has a key

relationship in terms of services are:

· Environment Canterbury

· National Office of the Ministry of Health (Subsidies).

· Local Medical Officer of Health (Part 7, Local Government Act).

· Transwaste Canterbury Ltd

· Ministry for the Environment

· Audit Office NZ.

· Canterbury CDEM Planning Group

· Department of Conservation

· NIWA

· WasteMinz

· Recycling Operators of NZ Inc (RONZ)

· Resource Efficiency in the Building and Related Industries (REBRI)

· Scrap Metal Association

· G. Preston & Son

· Mastagard Ashburton Ltd

· ChemWaste

· Keep NZ Beautiful

· Zero Waste NZ Ltd · Agrecovery



A- 6 Detailed Requirements

A number of these requirements are further described below.

A- 6.1 Local Government Act 2002

Significant requirements in relation to this Plan are:

· Schedule 10

· The requirement to consider all options and to assess the benefits and costs of each option

(see Appendix ‘F’). relating the full assessment of sanitary services.

· Special consultative procedure Sections 82-92.

The Council adopted a Waste Management Plan for Solid and Hazardous Waste in December

1999and was reconfirmed by the Council in 2005. With the introduction of the Waste Minimisation Act 2008, the Plan was reviewed and revoked in 2011. A new draft Waste Management and Minimisation Plan has been prepared and is currently under public consultation.

The Plan’s vision for the future is “working towards Zero Waste by providing and maintaining solid waste and recycling facilities and services, these will contribute to community outcomes of:

• supporting a thriving and diverse economy;

• contribute to a healthy community; and

• contribute to sustainable lifestyles and minimise environmental impacts.

These will in turn assist Council in reaching their overall vision for the District, which is Ashburton: District of Choice for Lifestyle and Opportunity.”

The objectives of the Plan are to:

· Work towards an aspirational goal of zero waste in both urban and rural communities.

· Ensure suitable cost effective collection and disposal systems exist which minimise the risks to the environment and community.

· Achieve responsible and informed decisions on solid waste management by the community.

As part of the Plan, landfill sites within the District have been closed and replaced by resource recovery parks. The Council has given support to voluntary and commercial organisations to provide services for recycling waste and waste management, particularly in smaller towns and rural areas.

A- 6.1.1 Waste Management Services and Works

Under Section 52 of the Waste Minimisation Act 2008, Council “may undertake, or contract for, any waste management and minimisation service, facility, or activity (whether the service, facility, or activity is undertaken in its own district or otherwise)” and may “charge fees associated with the exercise of the power in accordance with its waste management and minimisation plan.”

A- 6.1.2 Bylaws

Section 145 and 146 of the Local Government Act 2002 sets out a specific bylaw making power for

waste management covering:



· Prohibiting or regulated the disposal of waste.

· Regulating the collection and transportation of solid waste.

· The mode and disposal of dead animals.

· The charges to be paid for use of facilities.

· Regulating public access to these facilities.

· Prohibiting the removal of waste intended for recycling.

· The licensing of persons who collect or transport solid waste.

A- 6.2 Waste Minimisation Act

The Waste Minimisation Act 2008 encourages 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.

In summary, the Act:

· Puts a levy on all waste disposed of in landfills to generate funding to help local government,

communities and businesses reduce the amount of waste.

· Helps and, when necessary makes, producers, brand owners, importers, retailers, consumers

and other parties take responsibility for the environmental effects from their products at end-of-

life – from ‘cradle to grave’.

· Allows for regulations to be made making it mandatory for territorial authorities and others (for

example, landfill operators) to report on waste to improve information on waste minimisation.

· Clarifies the role and responsibilities of territorial authorities with respect to waste

minimisation.

· Introduces a new Board to give independent advice to the Minister for the Environment on

waste minimisation issues.

A- 6.3 Resource Management Act

In relation to Solid Waste, the Resource Management Act 1991 deals with the control of discharges

or contaminants into water and air.

“Section 5

(1) The purpose of this Act is to promote the sustainable management of natural and physical

resources.

(2) In this Act, sustainable management means managing the use, development, and protection

of natural and physical resources in a way, or at a rate, which enables people and communities to

provide for their social, economic, and cultural wellbeing and for their health and safety while—

(a) Sustaining the potential of natural and physical resources (excluding minerals) to meet

the reasonably foreseeable needs of future generations; and

(b) Safeguarding the life-supporting capacity of air, water, soil, and ecosystems; and

(c) Avoiding, remedying, or mitigating any adverse effects of activities on the environment.

Section 17 outlines the following duties.



(1) Every person has a duty to avoid, remedy, or mitigate any adverse effect on the environment

arising from an activity carried on by or on behalf of that person, whether or not the activity is in

accordance with a rule in a plan, a resource consent, a designation, section 10, section 10A, or

section 20A

A- 6.4 Canterbury Regional Policy Statement

The requirements of the Resource Management Act 1991 are being implemented by the

Canterbury Regional Council through the Resource Consent procedure and the proposed Regional

Policy Statement. This is a written statement of the principles, priorities, and courses of action

proposed by the Regional Council to deal with the resource management issues of the region.

A- 6.5 Natural Resources Regional Plan

The Natural Resources Regional Plan includes a rule setting out conditions on the discharge

of solid domestic waste to land. The draft rule covers the following waste minimisation and

management matters:

· Sustainable use of natural & physical resources.

· Co-ordinated and consistent management of solid waste in the district.

· Minimise adverse impact on the environment.

· To apply the principles of the 5R’s (reduce, reuse, recycle, recover, residual waste

management) hierarchy. The 5R’s hierarchy is an internationally recognised model

· Public education to promote a change in behaviour.

· Encourage the establishment & use of community services & facilities such as waste transfer

and recycling centres, in rural & urban areas.

A- 7 Legislative Requirements – Summary

The Ashburton District Council is proposing through the draft Waste Management and Minimisation Plan for Solid Waste to aspire towards the goal of zero waste to landfill. The Waste Minimisation Act 2008 gives Territorial Local Authorities this direction, requiring that a waste management and minimisation plan must incorporate the following hierarchy of disposal options, listed from most desirable to least desirable:

· Reduction

· Reuse

· Recycling

· Recovery

· Treatment

· Disposal.

The Waste Management and Waste Minimisation Plan 2011 gives effect to this hierarchy, and specific provision of funding to provide Solid Waste Facilities and Services and closed landfill compliance and monitoring over the period of the Plan.

The draft Plan is currently under public consultation.



A- 8 Improvement Actions

Potential improvements identified in this section are summarised below:

Item Priority Comments

1 2 3 4 5 6

nil

Relative Urgency

Extremely urgent (needs to be addressed now)

Very urgent

Urgent

Reasonably or fairly urgent

Not urgent

A good idea for some time in the future

Entrance to Ashburton Facility

Key

1

2

3

4

5

6




REFERENCE / REASON: SCHEDULE 10 CLAUSE (2)(1)(D) LOCAL GOVERNMENT ACT 2002

B- 1 Introduction

The assets included in the Solid Waste Activity Management Plan largely cover the Resource Recovery Parks that service the Ashburton District. Resource Recovery Parks consist of two sites providing for disposal of refuse and drop off facilities for greenwaste, reusable items and recyclable resources. The Ashburton RRP also has facilities for the drop off of demolition waste. . Various items of buildings, plant and machinery are located at these sites. Other recyclable resources drop off facilties are located at Methven, Mayfield, Mt Somers, Willowby Hinds, Hakatere Huts, Rangitata Huts, Pendarves . There are also approximately 228 street litter bins throughout the District.

The Council provides a refuse collection in black prepaid bags in the urban areas of Ashburton, Methven, Rakaia, Hinds, Mayfield and Mt Somers. Up to 15kg may be contained in these bags for collection. The refuse is transported to the Ashburton Resource Recovery Park and compacted into special freight containers for transport to the Kate Valley Landfill site in Hurunui District.

Recyclable resources are collected in 45 litre green plastic bins in Ashburton, Methven, Hinds, Mayfield and Mt Somers and separate plastic bags in Rakaia. Rakaia also has a separate plastic bag collection for household organic and greenwaste

Methven has a separate drop off facility for Greenwaste and Inorganic Material.

B- 2 Asset Overview

The Solid Waste facilities in the district are as follows:

SITE RESIDUAL WASTE

GREEN WASTE

INORGANIC WASTE

RECYCLABLE WASTE


AshburtonRRP

Methven

Rakaia RRP

Mayfield

Mt Somers



SITE RESIDUAL WASTE

GREEN WASTE

INORGANIC WASTE

RECYCLABLE WASTE


Willowby

Hinds

Hakatere Huts

Rangitata Huts

Pendarves

Table B-1: Resource Recovery Parks and Recyclable Resources Drop-off Facilities in Ashburton District

Solid waste volumes for the last two financial years are summarised in Table B2.


Residual waste

Tonnes

Recyclable resources

Tonnes

C&D Waste Tonnes

(3)

Green Waste Tonnes

Total Diverted %

2004/05 7,609 (1)

2,349 - 1,629 (1)

34.3

2005/06 7,537 (1)

2,621 - 2,082 (1)

38.4

2006/07 7,895 (1)

3,140 - 2,749(2)

42.8

2007/08 8,056 (1)

3,973 - 2,133 (2)

43.1

2008/09 8,837 (1)

4,736 - 1,473(2)

41.3

2009/10 8,375 4,649 - 1,880 (2)

43.8

2010/11 8,061 4,321 1,181 (2)

40.6

Notes:

(1) Data obtained from Ashburton District Council Solid Waste Activity Management Plan, March 2009, Version 3.

(2) Tonnages for greenwaste have been derived from cubic metres of greenwaste shredded and calculated back into tonnes (3.058 m

3/t). The 2010/11 figure is based on 3 months of calculated

tonnage and 9 months of actual recorded tonnes.

(3) Tonnages of C&D materials were not recorded prior to July 2010.

(4) The data presented in this table excludes recyclable materials collected in Rakaia

Table B-2 Composition of Waste(4)

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11

Cardboard 514 545 627 680 719 1169 788

Paper 739 849 885 989 1016 880 1379

Steel & Cans 75 77 53 63 59 52 24



Al Cans 13 13 12 13 12 13 3

Batteries 2 7 12 10 9 6 0

Other metals 97 29 80 179 216 208 200

PET Plastics 42 50 44 64 70 53

HDPE plastics 34 42 52 54 56 55

Glass 557 490 649 817 1456 1098 1136

Reusable items 249 482 680 923 941 1008 470

Plastic film & bags

27 37 38 64 38 41

Mixed Plastic 8 117 144 66 320

TOTAL 2349 2621 3140 3973 4736 4649 4321

Note:

Tonnes of reusable items prior to 2010/11 are calculated from sales. From October 2010 actual tonnage is recorded. The most recent data is thus not directly comparable with earlier data.

Table B-3 Breakdown of recyclable resources (tonnes) Table B-2 and Figure B1 summarise district-wide waste volumes from 2004/05 to 2010/11, and

show that progress was made in terms of the percentage diverted from the residual waste stream to landfill in 2005/06. This graph also shows a steadily increasing demand for solid waste disposal. Achieving ongoing reductions in the volume of residual waste will require significant progress to be made in capturing waste in the other areas of the waste stream.

Note: Residual waste transported from Rakaia to Ashburton is included in this table. The volume of

material diverted from the waste stream in Rakaia (excluding glass) is not however included.

Figure B-1: Waste Stream Diverted

The scope of assets (as at the July 2011 valuation) is as follows.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Total Waste Tonnes % Diverted

Ton

ne

s

% D

ive

rte

dfr

om

Was

te S

tre

am



Asset Group Notes

Earthworks Site levelling and preparation, foundations

Buildings Onsite buildings and sheds

Plant & Equipment Compactors, weigh bridges

Recycling Plant & Equipment Cages and bins for materials separation

Roads and Sealed Areas Access and hardstand areas

Signs Information signs

Bins Includes 44 gallon drums and all other bins

Compost Areas Ashburton, includes silt trap

Table B-4: Summary of Solid Waste Assets (2011)

A variety of litter bins are located in various townships as summarised in Table B-5. Material

types include concrete, steel, timber slat, wire mesh and plastic.

Township Litter Bin Nos

Ashburton / Tinwald 143

Methven 43

Rakaia 22

Mayfield 3

Hinds 9

Mt Somers 8

Table B-5: Summary of Litter Bin Assets (2011)

B- 2.1 Private Solid Waste Systems

In addition to those areas that are served by Council solid waste services and facilities, many properties in the

Ashburton District also source solid waste services from private companies. These Companies use

the Council’s Resource Recovery Parks.

B- 2.2 Location of Assets

Figure B1 below shows the location of the Resource Recovery and Recycling Drop Off sites in the

Ashburton District.



Figure B-2: Location of Resource Recovery Centres

B- 2.3 Capacity and Performance

This activity is performing satisfactorily at present and is being progressively expanded / developed

to cater for future needs as discussed in Appendix F.

B- 2.4 Asset Condition

No formal condition assessments are undertaken.

B- 2.5 Historical Data

Historical data is recorded informally at present. The intention is to record this information in the new Asset Information System that Council is considering to adopt.

B- 3 Strategic Approach and Improvement Actions

The Council has made significant improvements to solid waste management in recent years,

And continues to build on the progress made. An Asset Information System has been recommended for adoption by Council and this will improve the asset data capture quality and quantity when the system has been implemented.

Council has committed through its Waste Management and Waste Minimisation Plan 2011 to continue to provide for waste management and minimisation services and facilities in the Ashburton District. An action plan that sets out Council’s proposals to manage and minimise waste in the



district has been prepared in the Plan to address District specific issues.

B- 4 Improvement Actions


Item

B1 Capture condition and performance data for

critical assets

B2 Formal recording systems/processes for

historical data.

Relative Urgency


Very urgent

Urgent


Not urgent


Priority Comments

1 2 3 4 5 6

X

X

Key

1

2

3

4

5

6


Appendix C - Assessment of Solid Waste Management 46

Appendix C - Assessment of Solid

Waste Management

REFERENCE / REASON: LOCAL GOVERNMENT ACT 2002 (SECTION 128), LOCAL

GOVERNMENT ACT 1974 (SECTIONS 540-541)

C- 1 Introduction

Territorial Local Authorities have an obligation under the Local Government Act 2002 to promote

effective and efficient waste management within their district.

The Ministry for the Environment is also asking Councils to adopt the New Zealand Waste Strategy

as a basis for their waste planning and actions.

TLAs are required to prepare waste management plans and be responsible for implementing waste

policies in their local communities.

A territorial authority is required under part 7 (Sections 124-125, 127-129) of the Local Government

Act 2002 to carry out an assessment of sanitary services within its district. The Act defines sanitary

services as having the same meaning as sanitary works in section 25 (1) (a), (b), (c), (d), (h) and (i)

of the Health Act 1956. Section 25 (1) (h) of the Health Act includes “works for the collection and

disposal of refuse, nightsoil, and other offensive matter” as a sanitary work.

As specified in the legislation, TLAs must ensure effective and efficient waste management in the

District.

C- 2 Waste Minimisation Act

The Waste Minimisation Act 2008, Part 4, s 50-51 states the following:

50 Review of waste management and minimisation plan

(1) A territorial authority must review its waste management and minimisation plan-

(a) not later than 1 July 2012; and

(b) then at intervals of not more than 6 years after the last review.

(2) Before conducting a review, the territorial authority must make an assessment under

section 51.

(3) If, after the review, the territorial authority considers that the plan-

(a) should be amended or revoked and a new plan substituted, it must act under

section 44:



(b) should continue without amendment, it must use the special consultative

procedure set out in section 83 of the Local Government Act 2002 and, in

doing so, notify the assessment with the statement of proposal.

51 Requirements for waste assessment

(1) A waste assessment must contain-

(a) a description of the collection, recycling, recovery, treatment, and

disposal services provided within the territorial authority’s district

(whether by the territorial authority or otherwise); and

(b) a forecast of future demands for collection, recycling recovery,

treatment, and disposal services within the district; and

(c) a statement of options available to meet the forecast demands of

the district with an assessment of the suitability of each option;

and

(d) a statement of the territorial authority’s intended role in meeting

the forecast demands; and

(e) a statement of the territorial authority’s proposals for meeting the

forecast demands, including proposals for new or replacement

infrastructure; and

(f) a statement about the extent to which the proposals will-

(i) ensure that public health is adequately protected

(ii) promote effective and efficient waste management and minimisation.

(2) An assessment is not required to contain any assessment in relation to individual

properties.

(3) Information is required for an assessment to the extent that the territorial authority

considers appropriate, having regard to-

(a) the significance of the information; and

(b) the costs of, and difficulty in, obtaining the information; and

(c) the extent of the territorial authority’s resources; and

(d) the possibility that the territorial authority may be directed under

the Health Act 1956 to provide the services referred to in that Act.

(4) However, an assessment must indicate whether and, if so, to what extent, the matters

referred to in subsection (3)(b) and (c) have impacted materially on the completeness

of the assessment.

(5) In making an assessment, the territorial authority must-

(a) use its best endeavours to make a full and balanced assessment;

and

(b) consult the Medical Officer of Health.

C- 3 Sanitary Services Assessment Requirements

The Local Government Act 2002 (section 128) states that a separate assessment of sanitary

services is not required if a council considers public health matters have been adequately

addressed in a waste management plan made under Part XXXI of the Local Government Act 1974,

or addressed in an assessment made under section 125 of the Act.

Section 125 allows the Council to include the assessment in the LTP, otherwise it “must adopt

the assessment using the special consultative procedure”.

In terms of the information to be provided, Section 127 requires that “an assessment of sanitary

services must contain the following information:



· a description of the sanitary services provided within the district for each community in it; and

· a forecast of future demands for sanitary services within the district and each community in it

and;

· a statement of the options available to meet the forecast demands and an assessment of the

suitability of each option for the district and each community in it and;

· a statement of the territorial authority's intended role in meeting the forecast demands and;

· a statement of the territorial authority's proposals for meeting the forecast demands, including

proposals for any new or replacement infrastructure and;

· a statement about the extent to which the proposals will ensure that public health is

adequately protected”.

The assessment process must include consultation with the Medical Officer of Health, and “take

into account the duties of the territorial authority under section 23 of the Health Act 1956”.

C- 4 Solid Waste Sanitary Services Assessment

C- 4.1 Existing Assessment

A waste assessment was carried out in 2011 and the draft Waste Management and Minimisation Plan has been prepared and is currently out for public consultation.

C- 4.1.1 Solid Waste Management

“

Council has five closed landfills (Ashburton, Mayfield, Methven, Hinds and Rakaia) which are fully consented, monitored, maintained and reported on, in accordance with consent conditions. The Council operates two resource recovery parks located at Ashburton and Rakaia. Recycling drop off facilities are also provided in Hinds, Mayfield, Methven, Mt Somers, Willowby, Hakatere Huts, Rangitata Huts and Pendarves.

Kerbside collection of refuse and recycling is contracted out and occurs at Ashburton, Methven, Hinds, Mount Somers and Mayfield. Collection (domestic refuse only and recycling) is extended to industrial and commercial properties. These collected materials are taken to the Ashburton Resource Recovery Park (RRP).

At Rakaia, refuse, recyclable materials and green/household organic waste are collected at the kerbside by a Council contractor in separate plastic bags. All materials other than refuse are taken to the Rakaia Resource Recovery Park. The refuse collected including that dropped off at the Rakaia RRP is taken to the Ashburton RRP where it is consolidated with refuse from elsewhere in the District prior to transport to the Canterbury Regional Landfill at Kate Valley located in Hurunui District.

Methven also has a facility for the drop-off of household items for recycling or reuse, and a separate greenwaste and inorganic resources drop-off facility.

Reusable items are sold at the resource recovery parks, recyclable materials are sorted and processed as required for specific markets, greenwaste and household organic waste(Rakaia only) is composted.

The resource recovery park contractor is incentivised to recover resources from residual waste by being paid monthly for tonnages recovered from the residual waste stream.



Solid waste private contractors also operate in the District and generally use the Ashburton RRP for disposal.

Council has contracted out education services in relation to solid waste management and minimisation. The education services provided comprise:

• Operating the education centre at the Ashburton Resource Recovery Park

• Working with schools

• Working with community groups

• Working with businesses

• Displays at shows or events

• Telephone helpline

• Press releases each month on waste issues.”.

Ashburton District Council’s Future Intended Role

“To provide effective and efficient collection and handling of recyclable materials and residual waste to meet forecast demands”.

C- 4.2 Role of this Plan

Further to this assessment, this Plan and thus the LTP it supports, is intended to provide all of

the information required by the legislation, in the following Appendices:

Information Requirement Appendix

Description of solid waste services Appendix B

Forecasts of future demand Appendix F

Options and their suitability for meeting future demand Appendix F

Role of Ashburton District Council Appendix E

Proposals for meeting demands, including new infrastructure Appendix F

Protection of public health (eg risk based approach) Appendices E, P, Q, R, T

C- 5 Improvement Actions



1 2 3 4 5 6

nil

Relative Urgency


Very urgent

Urgent


Not urgent


Key

1

2

3

4

5

6


Appendix D – Asset Valuations 50

Appendix D - Asset Valuations

REFERENCE / REASON: FINANCIAL REPORTING STANDARD NO. 3

D- 1 Current Valuation

Solid Waste assets were last revalued as at 1 July 2011 by Opus International Consultants Limited, and a summary of the valuation result is presented in Table D-1 below.

Table D-1: Solid Waste Asset Valuations 2011

The valuation process was completed in accordance with the following standards:

· NZ Equivalent to International Accounting Standard 16, Property, Plant, and Equipment

(NZIAS16)

· NAMS Infrastructure Asset Valuation and Depreciation Guidelines Edition 2.0 2006.

The valuations were generally based on accurate and substantially complete asset registers and

appropriate replacement costs and effective lives.

The asset registers record data to a sufficient component level to allow assets of different base lives to be valued separately. The valuation took into account those landfill sites which have been

closed.

The primary source of information for the 2011 revaluation was ADC’s valuation spreadsheets from the 2008 valuation, which have been progressively updated with asset additions, renewals and

ASSET TYPEORC

1 July 2011

ODRC

1 July 2011

Depreciation to

Date

Annual

Depreciation

1 July 2011

Rakaia Resource Recovery Park $444,415 $350,286 $94,129 $13,261

Ashburton Resource Recovery Park $1,999,416 $1,613,138 $386,278 $55,927

Methven Recycling drop-off area $74,239 $62,267 $11,973 $4,309

Mayfield Recycling drop-off area $5,792 $3,280 $2,512 $442

Hinds Recycling drop-off area $2,036 $1,425 $611 $204

Recycling $22,564 $22,564 $0 $1,062

Ashburton and Tinwald Litter Bins $216,770 $38,891 $177,880 $16,719

Mayfield Litter Bins $829 $829 $0 $83

Methven Litter Bins $28,302 $7,129 $21,173 $2,164

Rakaia Litter Bins $20,239 $6,268 $13,971 $1,721

Rakaia Huts Litter Bins $0 $0 $0 $0

Hinds Litter Bins $9,694 $3,197 $6,497 $944

Mt Somers Litter Bins $6,914 $1,379 $5,536 $628

$2,831,210 $2,110,651 $720,559 $97,464



disposals for the 2008/09, 2009/10 and 2010/11 financial years.

The incremental approach to optimisation was adopted for the valuation. Renewal practices dictate

that in general assets will be replaced in ‘brownfields’ situations, which closely reflects the

incremental approach.

Straight-line depreciation has been assessed as the most appropriate method and applied to all

assets to establish the DRC.

The valuation excludes any land that is associated with the solid waste activity.

D- 1.1 Useful Lives

These are recorded below for the major assets.

Table D2 defines the lives used in the ADC Solid Waste valuation. A change has been made

since the 2008 valuation for Plant and Equipment as a range of lives rather than a specific life.

Component NZ Valuation Adopted Useful

Guidelines Life

Buildings 50 - 100 50

Earthworks Not Depreciated Not Depreciated

Lighting 30

Litter bins (various) 10

Plant and Equipment - 5 - 50

Recycling containers - 20

Recycling Bins and boxes 3 - 10 5-10

Roads and Sealed Areas 30 - 50 40

Table D-2: Ashburton District Council Solid Waste Valuation- Lives 2011

In addition, ADC calculates a revised valuation annually, based on work completed during the year.

D- 2 Valuation Forecasts

Figure D-1 shows the estimated increase in the replacement cost value of the assets over the next

ten years, based on the capital programmes in this Plan.



Esimated Asset Valuation - Solid Waste Assets

3.50

3.00

2.50

2.00

1.50

1.00

0.50

0.00

Year

Total Replacement Cost Total Depreciated Replacement Cost

Figure D-1: Estimated Asset Value – 2009/19 Replacement Cost

D- 3 Improvement Actions



1 2 3 4 5 6

Improve process for data capitalisation

X

Revaluation annually

Relative Urgency


Very urgent

Urgent


Not urgent


D1

D2

1

2

3

4

5

6


Appendix E - Maintenance and Operating Issues 53

Appendix E - Maintenance and

Operating Issues

REFERENCE / REASON: SCHEDULE 10 CLAUSES 2(1)(D)(I) AND (VI) AND (E) AND (2)(B)

LOCAL GOVERNMENT ACT 2002 AND SECTION 60 CIVIL DEFENCE EMERGENCY

MANAGEMENT ACT 2002

E- 1 Introduction

E- 1.1 Council to Continue to Own, Operate & Maintain

Council intends to continue to own, control and manage its recycling and solid waste collection and

disposal facilities and to continue to provide a collection and disposal service. Operation and

maintenance is contracted to a suitable service provider. The contract is performance based, with

the contractor required to operate and maintain the assets to achieve agreed outcomes and

provide levels of service set by Council. Periodically, Council conducts service delivery reviews to

confirm the best method of providing waste management services. This may affect how Council

operates and maintains solid waste and recycling services in the future.

E- 1.2 Operations and Maintenance

Operations activity has no effect on asset condition but is necessary to keep the asset

appropriately utilised, and may include cleaning or the use of electricity.

Maintenance is the routine, ongoing day-to-day work on assets that is necessary to keep the

assets in service, for example where portions of the asset fail and need immediate repair to make

the asset functional again.

Generally speaking, all of the systems are in a reasonable state of repair and if they are maintained

and renewed regularly, and at the appropriate times, they can be expected to last indefinitely,

without significant costs being incurred.

E- 2 Maintenance and Operating Tactics

The Local Government Act requires that it be stated ‘how maintenance will be undertaken in

Schedule 10 2(1)(d)(vi)).

The Solid Waste Management and Minimisation Plan describes the activities and how they are delivered.



E- 2.1 Deferred Maintenance

If work is to be deferred, the impact on the system and the system’s ability to provide the required

levels of service will be considered in the decision making process.

All deferred works will be reconsidered and re-prioritised in the following years annual plan

programme.

The deferral of some items of work will not have a detrimental effect on the levels of service

provided by the system. Repeated deferral however may incur a liability in future years.

E- 3 Maintenance and Operating Cost Projections

The structure of the budget presented in this section is consistent with the Council’s costing and

accounting system. This also relates to the way operating and maintenance expenditure is to be

tracked in the future.

Cost projections are summarised in Table E-1 and Figure E-1. These costs assume no change in

the method of service delivery and make no allowance for inflation.

The budget is built up from the costs for each individual site and township collection system, using

a detailed financial planning spreadsheet.

Table E-1: Future Maintenance & Operating Cost Projections



Estimated O&M Costs - Solid Waste Collection

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0

Year

OPEX Depreciation Overhead charges

Estimated O&M Costs - Solid Waste Management

4,000,000

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

Year

OPEX Depreciation Overhead Charges

Figure E-1: Maintenance and Operating Forecasts next 10 years (no inflation)

E- 3.1 Funding of Maintenance Work

Maintenance and operational costs are funded from general rates and targeted uniform annual charges. Budgets are set based on historical requirements and identified maintenance works that are required. The annual

maintenance budget is reviewed annually and is the subject of public consultation through the

LTP process.



E- 4 Civil Defence and Emergency Management

Requirements

The Council must ensure that it will be able to meet its obligations under the Civil Defence

Emergency Management Act 2002. That Act declares that every local authority must plan and

provide for civil defence management within its district. Section 64 states:

“Every local authority must ensure that it is able to function to the fullest possible extent, even

though this may be at a reduced level, during and after an emergency.”

The Act also requires all lifeline utilities to:

· Have plans for such functioning (continuity) that can be made available to the Director of the

Ministry of Civil Defence & Emergency Management.

· Participate in CDEM planning at national and regional levels where requested.

· Provide technical advice on CDEM issues where reasonably required.

The Ashburton District Civil Defence Plan 2005-2010 provides under Public Health arrangements

liaison with the Council’s solid waste services in advising residents on disposal of waste during a

civil defence emergency.

The Council is also developing systems which outline procedures enabling the continuation of solid

waste disposal (possible at a reduced level) during a major breakdown or civil defence emergency.

E- 5 Improvement Actions


Item

E1 Complete the Emergency Response Plan

for the Solid Waste disposal service

Relative Urgency


Very urgent

Urgent


Not urgent


Priority Comments

1 2 3 4 5 6

x

Key

1

2

3

4

5

6


Appendix F – Demand & Future Capital Requirements 57

Appendix F - Demand and Future New

Capital Requirements

REFERENCE / REASON: SCHEDULE 10 CLAUSES 2(1)(D)(I)-(V) AND (2)(B) (AND ALSO

SECTION 77 LOCAL GOVERNMENT ACT 2002 – THE REQUIREMENT TO CONSIDER ALL

REASONABLY PRACTICABLE OPTIONS AND TO ASSESS THE ECONOMIC,

ENVIRONMENTAL, SOCIAL AND CULTURAL IMPACTS OF EACH OPTION WILL BE

PARTICULARLY RELEVANT UNDER THIS HEADING)

This section identifies the future new capital requirements, and explains the proposed future capital

development strategy in terms of ‘how’ the provision of additional asset capacity will be undertaken

– a specific requirement of the Act.

F- 1 Future Demand – Ashburton Development

Plan

The Ashburton Development Plan (Boffa Miskell, 2005) was adopted by Council in July 2005. The

need for this plan was driven by:

· Population growth, expected to add 6000 people by 2021 based on recent growth trends.

· Changing demographics in relation to ADC’s population age profile and household sizes.

· Labour market changes, and attraction and retention issues.

· Pressures on productive land and on water and soil resources.

· Changing nature of business and industry growth and the relationship to township services.

· Quality of urban environments.

· Changing roles of dispersed villages.

The Development Plan forms the basis for the planning and design of infrastructural services,

policy directions that feed into the LTP, and some changes in the District Plan.

The increasing demand for land, particularly industrial/commercial land, will result in the need to

make significant investments in infrastructure, both new and in the upgrading of existing assets.

There will also be implications for financial contributions to be made by developers, as provided for

in the legislation.

The first phase of the development plan study was a State of Play report, which focussed on key

future issues in terms of:

· Landscape and Ecology

· Land Use Capability

· Transport

· Water Supply



· Wastewater

· Stormwater

· Irrigation

· Solid Waste

· Electricity

· Economy

· Community

· Population Projections and Growth

· Projected Land demand

F- 1.1 Small Villages Development Plan 2008

The Small Villages Development Plan 2008 takes the ADP work further, and describes possible

future growth in a number of villages, Hinds, Mayfield, Mt Somers and Barrhill. If growth is to occur

in these townships, consideration will need to be given to providing new or expanded services in

these areas.

F- 1.2 Population Projections and Growth

Given recent population growth trends in Ashburton District during the last census cycle (2001 to

2006), Statistics New Zealand’s ‘high’ population growth projections have been used in Council’s

activity management plans. These ‘high’ projections are consistent with the population growth

forecasts included in the Ashburton District Development Plan, derived from building consent,

subdivision consent, school roll and real estate data. Figure F-1 illustrates the district-wide data.

Total population is expected to increase from an estimated 30,800 in 2011 to nearly 37,700 by 2031.

Figure F-1: Population Growth Projections

24000

26000

28000

30000

32000

34000

36000

38000

40000

2006 2011 2016 2021 2026 2031

Low

Medium

HighPro

ject

ed

Po

pu

lati

on

Year

Ashburton District Population



Other demographic changes signalled in the Ashburton District Plan are still anticipated to occur. The average household size (2.4 persons per household in 2001) is expected to continue to decrease to between 2.1 and 2.2 persons per household by 2021. One-person households are projected to rise and to represent an increasing proportion of all households.

Over the next 12-15 years, under the high growth scenario the median age of residents of the

District is expected to increase from 39.4 years (in 2001) to 48.3 years in 2021, as highlighted

below:

High Growth Scenario

35.0

30.0

25.0

20.0

Ashburton District

Ashburton Urban Area

Methven

Rakaia

Rural district

trend Ashburton District

Figure F-2: Percentage of Elderly within the District

Detailed projections through to 2031 by township and sub-township areas are shown in Figure F-3.

15.0

10.0

5.0

0.0

1986 1991 1996 2001 2006 2011 2016 2021



Figure F-3: Population Projections by Area

0

1000

2000

3000

4000

5000

6000

7000

2006 2011 2016 2021 2026 2031

Allenton

Hinds

Tinwald

Mt Somers

Pro

ject

ed

Po

pu

lati

on

Hampstead

Chertsey

Fairton

Methven

Ashburton Central East

Netherby

Rakaia Ashburton Central West

Plains Railway

Statistics - Areas Population Projections

2006 2011 2016 2021 2026 2031

Methven 1360 1640 1810 1970 2130 2280

Fairton 1570 1800 1980 2150 2310 2450

Plains

Railway

570 710 800 890 980 1070

Mt Somers 2410 2660 2860 3070 3290 3490

Hinds 3790 4340 4710 5060 5410 5750

Chertsey 2130 2340 2530 2720 2890 3080

Rakaia 1090 1200 1260 1310 1360 1410

Allenton 5500 5820 5920 5990 6050 6090

Ashburton

Central West

1060 1100 1150 1180 1210 1240

Netherby 1530 1620 1710 1780 1850 1910

Ashburton

Central East

1590 1750 1810 1860 1890 1930

Hampstead 2540 2750 2840 2920 3000 3070

Tinwald 2890 3020 3130 3210 3260 3280



F- 1.2.1 Projected Land Demand Growth pressures are most evident in Ashburton and Methven townships, with Rakaia and villages

such as Hinds, Mayfield, Mt Somers and Barrhill also expected to grow. Provision for new zonings

is anticipated through the District Plan review

F- 1.2.2 Infrastructure Principles

Principles are defined in the Ashburton Development Plan for Settlement, Identity and Character, Street and Movement, Open Space and Infrastructure.

F- 1.2.3 Development Options

The Development Plan describes the options considered to meet future demand in line with the

vision and principles, outlines the consultation process followed in assessing these options, and

describes the evaluation of the options.

The focus of the Plan is on “towns and villages where the potential for change and the

opportunities for growth to benefit the District are most evident”. This tends towards Ashburton

town, Rakaia and Methven as these are the areas experiencing the greatest growth pressures and

highest projections for future growth. These are also the towns where the greatest numbers of

people live in concentration, where the urban issues are most complex, and where the qualities of

those urban environments influence the greatest number of people in the District.

Some of the District’s smaller villages are experiencing growth, therefore their residents may be

seeking changes to the environment. Although the growth may not be quantitatively large, the

potential for changes that can benefit the village viability and quality of life for residents has

suggested some development recommendations as part of this plan.

The options selected, focus on the following major components across the District:

· Residential land development

· Green belt residential zoning

· Industrial land zoning

· Town centres

· Infrastructure planning

· Traffic

Infrastructure planning is a key action arising from the Development Plan, and this will inform the

staging of land release and the financial contributions sought from land developers.

F- 1.3 District Plan

The Council has responsibility under section 5 of the District Plan to ensure that waste

management is carried out in a manner which safeguards the life-supporting capacity of air, water,

soil and ecosystems; and avoids, remedies or mitigates any adverse effects on the environment. In

addition to the rules within the district plan, solid waste disposal is provided for by way of

designation.



F- 2 Factors Influencing Demand for Solid Waste

Services

The Implementation Plan discussed above focuses more on towns and urban settlements than on

the needs of rural communities for solid waste disposal.

Factors affecting future demand for solid waste services include:

· Anticipated changes in customer expectations

· Population growth

· Changes in Technology

· Use of new technology and effects on providing future services

· Obsolescence

· New farming or manufacturing practices requiring onsite treatment of animal waste

· Change in solid waste levy, prohibition on burning

· Waste disposal patterns

F- 3 Forecast Future Solid Waste Disposal

Requirements

Appendix B describes the current and projected future demands for solid waste disposal. The

council is working towards the aspirational goal of zero waste.

Likely growth of future solid waste management requirements for the next five years is summarised in the Table F-1. The growth trend relates to projected increases in population, based on the same amount of waste per person averaged over the past 4 years (0.72 t/year). It does not allow for expansion of services outside of current areas serviced, and does not allow for waste collected from outside the current areas serviced. The residual waste quantity has been calculated assuming the maximum recycling rate of 43.8% experienced in 2009/10. Any improvement in the recycling rate as a result of any additional diversion measures outlined in this plan will reduce the quantity of residual waste transported to Kate Valley.

20

07

/08

20

08

/09

20

09

/10

20

10

/11

20

11

/12

20

12

/13

20

13

/14

20

14

/15

20

15

/16

Population served1 19,743 20,057 20,376 20,700 20,879 21,059 21,241 21,425 21,610

Number of

properties served2 9,401 9,551 9,703 9,857 9,942 10,028 10,115 10,202 10,290

Total waste

(Tonnes/year)2

14,162 15,046 14,904 13,563 15,033 15,162 15,294 15,426 15,559

Notes:

1. Population data advised by Ashburton District Council on 30 August 2011 and includes only the built-up areas of Ashburton, Methven and Rakaia.

2. Properties served based on 2.1 people per household.

3. Predicted waste based on the average tonnage of waste/person disposed to landfill in the past 4 years (0.72 tonnes/person/year

Table F-1: Estimated Future Solid Waste Disposal Volumes



F- 4 New Capital Requirements

New capital involves 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. They may result from growth,

social or environmental needs.

Asset development will be carried out to meet future growth in demand or a significant increase in

the levels of service expected by the community.

The timing of development of the system will reflect the community’s ability to pay as determined

through the LTP development process.

F- 4.1 Selection Criteria

Service, functionality, price, availability, reliability and maintenance requirements are to be

assessed when consideration is given to creating or acquiring new assets.

Consideration is to be given as to whether a new or second hand item is appropriate when

acquiring mechanical or electrical equipment.

F- 4.2 Standards and Specifications

All system design work will be carried out to the specified standard and will take into consideration

comments, expectations, population, land-use, planning policies, technical and environmental

standards and technological advancement.

F- 4.3 New Capital Investment

The sources of new capital investment priorities include:

·

· Greater emphasis on reuse, recycling and resource recovery to work towards the aspirational goal of zero waste.

· Public Health Risk Management Plans

· Other technical assessments and reports

F- 4.4 Summary of Future Costs

Table F-2 and Figure F-2 summarise the total amount of new capital expenditure

proposed in this Plan over the next 10 years.

The financial planning spreadsheet lists individual work items for each site and township collection

service. It should be referred to for further information.



Future New Capital

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

Year

Figure F-3: Future New Capital Solid Waste Summary



Solid Waste new capital work 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Ashburton RRP

Putrescibles

Site development 10,909 60,780 65,975 41,830

Demolition & construction 29,559

Methven Green Waste & Drop-Off

Site development 7,610 21,732 6,256

Mayfield Drop Off

Recycling Crates 206 217 236 256

Hinds Drop Off

Recycling Crates 217 236 256

Rakaia RRP

New container 2,500

Site development 3,000 4,116 8,277 16,736 4,990 4,844 560 5,118

New Litter Bins

Ashburton 1,820 1,873 2,888 1,975 2,031

Methven 992 963 1,133

Rakaia 988 1,017 1,102 1,264

Hinds 910 963 2,031 1,072 1,133

988 1,164



Solid Waste new capital work 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Mt Somers

Mayfield 936 963 1,106 1,042 1,133

TOTAL NEW CAPITAL 28,729 8,148 5,777 62,965 83,786 6,032 1,543 70,819 10,215 49,888

Table F-2: New Capital Assets Forecast Costs



New capital can be considered under three headings, new assets, new assets associated with

growth and renewals associated with growth. This is necessary for two reasons:

· First, Schedule 13(1) (a) requires the local authority to identify the total cost it expects to have

to meet relating to demand resulting from growth when intending to introduce a Development

Contributions Policy.

· Second, Schedule 10(2) (iv) requires the local authority to identify the estimated costs of the

provision of additional capacity and the division of these costs between changes to demand

for, or consumption of, the service, and changes to service provision levels and standards.

Note that only the cost of new capital work is included here..

F- 5 Improvement Actions



1 2 3 4 5 6

Relative Urgency


Very urgent

Urgent


Not urgent


Key

1

2

3

4

5

6


Appendix G – Development Contributions/Financial Contributions 68

Appendix G - Development

Contributions / Financial Contributions

REFERENCE / REASON: SECTION 102(4) (D) AND 106 AND PART 8 SUBPART 5 (SECTIONS

197-211 AND SCHEDULE 13) LOCAL GOVERNMENT ACT 2002, AND SECTION 108

RESOURCE MANAGEMENT ACT 1991

The relationship between capacity, growth, Levels of Service, and the impact of new works is

shown diagrammatically below.

Service

Capacity

Existing

demand

Existing

Capacity

2005

Those works which include a growth component, as highlighted in the diagram, can be considered

for a development contribution – based on the cost of providing additional capacity for growth.

Providing additional capacity for an enhanced level of service as well, shown here as the higher of

the two sloping lines may still attract a growth component but it will be of a lesser proportion.

ADC has developed a Policy on Development Contributions and Financial Contributions, which can

be found in the LTP.

Council policy is that growth in the District will be funded from three main sources:

· Financial Contributions - (levied under the Resource Management Act), the policies to offset

adverse effects of a particular development are identified in the Ashburton District Council’s

District Plan.

· Development Contributions - (levied under the Local Government Act 2002) for growth

related projects that are identified in the Council’s Long Term Plan.

· Existing ratepayers - through rates and loans.

Capacity

provided by

the works Growth

Backlog


Appendix G – Development Contributions/Financial Contributions 69

Financial contributions are used when the effect of development directly contributes to the need for

physical works on Council services, and when the effect of the development has not been foreseen

in the LTP. Financial contributions are based on actual expenditure and further information is

available in the Council’s District Plan.

Table G-1: Financial Contributions Solid Waste Management

G- 1 Improvement Actions



1 2 3 4 5 6

Relative Urgency


Very urgent

Urgent


Not urgent


Key

1

2

3

4

5

6


Appendix H – Resource Consents / Property Designations 70

Appendix H - Resource Consents /

Property Designations

REFERENCE / REASON: RESOURCE MANAGEMENT ACT 1991 AND PUBLIC WORKS ACT

1987

H- 1 Introduction

The Council’s resource consent responsibilities are an important issue in relation to solid waste

activity.

The Resource Management Act 1991 deals with protection of the life supporting capacity of air,

water, soils, and ecosystems: generally by regulating the effects of human development on the

environment.

H- 2 Resource Consents

There are existing resource consents in operation for all activity carried out at the following sites.

Location Regional Council Reference No.

Consent No. Purpose Expiry Date

Ashburton Landfill, Range Street

CRC952068.2 CO6C/08532 To discharge contaminants (municipal refuse) into or Street onto land and leachate into groundwater.

28/01/2032


CRC952067 CO6C/08352 To discharge contaminants (odours, gases from decomposition of refuse) into the air.

28/01/2032


CRC000892 CO6C/08532 To discharge to air contaminants from a resource recovery park and a composting operation.

19/01/2035


CRC000893.1 To discharge stormwater from a refuse transfer property to ground

14/01/2035

Vaughans Road, Methven

CRC054067 CO6C/08517-02 To dispose of inert, inorganic demolition material on site, to store green waste for transportation off site, to store containers for

28/01/2032



recyclable/reusable larger household items prior to transportation off site at the Methven Landfill site.

Vaughans Road, Methven

CRC060545 CO6C/08517-02 To deposit inert material into Methven excavated land at the Methven Landfill.

28/01/2032

Methven Landfill, Methven

CRC952066 CO6C/08519 To discharge contaminants (refuse) into land.

28/01/2032

Methven Landfill, Methven

CRC952065 CO6C/08517 To discharge contaminants Methven (odours, gases from decomposition of refuse) into air.

28/01/2032

Mayfield Landfill, Tinwald

CRC952076 CO6C/08527 To discharge contaminants (refuse) into land and leachate into groundwater.

28/01/2032

Mayfield Landfill, Tinwald

CRC952077 CO6C/08525 To discharge contaminants (odours and gases from the decomposition of refuse) into air.

28/01/2032

Hinds Landfill, Frisbys Road

CRC952072 CO6C/08351 To discharge contaminants (refuse) into land and leachate into groundwater.

28/01/2032

Hinds Landfill, Frisbys Road

CRC952070 CO6C/08529 To discharge contaminants (odours, gases from the decomposition of refuse) into air.

28/01/2032

Rakaia Landfill, West Town Belt

CRC952074.1 CO6C/08520 To discharge contaminants (refuse) into land and leachate into groundwater.

28/01/2032

Rakaia Landfill, West Town Belt

CRC952075 CO6C/08520 To discharge contaminants (odours and gases from the decomposition of refuse) into air.

28/01/2032

Rakaia Resource Recovery Park

CRC111677 CO6C/08520 To use land to store organic waste matter

23/06/2034


CRC111678 CO6C/08520 Activity No. 1

To discharge contaminants to air from waste management processes

23/06/2034


CRC111678 CO6C/08520 Activity No. 2

To discharge contaminants to air from landfill/transfer station

23/06/2034


CRC111679 CO6C/08520 To discharge stormwater that may contain contaminants to land

23/06/2034

Cnr West Town Belt & Rakaia Terrace, Rakaia Transfer Station

CRC981852 CO6C/14505 To discharge contaminants to air

23/06/2034

Table H-1: Existing Resource Consents

The extent to which the Council has been able to meet the conditions of each consent is to be

reported in the Annual Report.

Changes of use at current sites will require resource consent.



H- 3 Property Designations

Property Designations for solid waste are included in the District Plan (Schedule A.1 Nos 132 to

138).

Compliance with the Standards attached to the designations is required.

H- 4 Improvement Actions

Resource consents will become more significant in coming years, as new requirements, such as

the NRRP, come into effect.



1 2 3 4 5 6

nil

Relative Urgency


Very urgent

Urgent


Not urgent


Key

1

2

3

4

5

6


Appendix I – Future Renewals Capital Expenditure 73

Appendix I - Future Renewals’ Capital

Requirements

REFERENCE / REASON: SCHEDULE 10 CLAUSES 2(1) (D) (VI) AND (2) (B) LOCAL

GOVERNMENT ACT 200

I- 1 Introduction

Renewal expenditure is major work that does not increase the asset’s design capacity but restores,

rehabilitates, replaces or renews an existing asset to its original capacity. Work over and above

restoring an asset to original capacity is new works expenditure.

I- 2 Renewal Tactics

I- 2.1 Identification of Renewals

The purpose of cyclic renewal / replacement / rehabilitation strategies is to provide for the

progressive replacement of individual asset components that have reached the end of their useful

lives.

This work is to be carried out at a rate which maintains the value of the system in the long term.

The work does not necessarily increase but maintains the Level of Service provided by the assets.

Projects and expenditure levels will be set and adjusted based on the following, and may vary from

year to year:

· Age profile of solid waste assets

· Condition profile of the assets

· Ongoing maintenance requirements and costs

· Different life expectancies of individual asset components.

Failure to maintain an adequate cyclic asset replacement will result in a decline in the overall

standard and performance of the asset or asset components.

I- 2.2 End of Life Projections

Base lives and remaining lives are determined using the methodology set out in the International

Infrastructure Management Manual, and are documented in the current asset valuation.



I- 3 Renewals Cost Projections

Renewal work is expected to be minimal. Expenditure has been provided in 2009/2010 for

recycling crates and security fencing. The cost of asset renewal work carried out is funded from

depreciation. If this funding is not sufficient to cover the cost of works, then loan funding may be used.

The cost of asset renewals requirements are scheduled in Table I-1, and Figure I-1 provides a

summary view.

Solid Waste Asset Renewals

100,000

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

Year

Figure I-1: Estimated Renewal Capital Expenditure – 2009/2019



Solid Waste replacement capital 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

work

Ashburton RRP

Recycling crates 9,736 6,822 7,022 7,221 8,242 4,579 7,899 8,141 8,139 12,445

Landfill aftercare/beautification 4,411 4,504 4,602 3,716 4,579 4,935 5,054 5,426 5,578

Resealing 61,051

Security/fence upgrade 16,365

Methven Recycling Drop-Off

Recycling Crates 326 336 919 345 355 368 385 396 407 386

Landfill aftercare/beautification 2,103 2,251

Rakaia RRP

Equipment 6,224

Reseal 4,579

Litter Bins

Ashburton 3,640 3,746 3,850 3,950 4,061 4,167 4,288 4,408 4,531 4,658

Methven

Rakaia

Hinds



Solid Waste replacement capital 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

work

Mt Somers

Mayfield

TOTAL RENEWALS 30,067 15,315 16,295 16,118 18,477 20,523 17,507 17,999 85,778 23,067

Table I-1: 10 Year Asset Renewals Programme



I- 4 Improvement Actions



1 2 3 4 5 6

nil

Relative Urgency


Very urgent

Urgent


Not urgent


Key

1

2

3

4

5

6


Appendix J – Depreciation / Decline in Service Potential 78

Appendix J - Depreciation / Decline in

Service Potential

REFERENCE / REASON: SECTION 100 AND SCHEDULE 10 CLAUSE 2(2) (A) AND (B) LOCAL

GOVERNMENT ACT 2002

J- 1 Depreciation

Depreciation is referred to as DISP (Decline in Service Potential) in ADC’s financial system. ADC

revalues assets on an annual basis, and this establishes the forward depreciation (DISP)

requirement as an opening balance as at 1 July.

Each ensuing year, the work completed during the year, which is eligible to be capitalised, is added

to the asset register and its DISP component added to the opening DISP to obtain a year end

figure for the Annual Report.

The cost of all renewal work will be funded by the annual depreciation provision. Any residual

depreciation balance each year will be used to repay debt and to thereby reduce the annual loans’

servicing requirement. Conversely, when renewals’ costs exceed the amount of depreciation

available, loan funding will be used. The Council will aim to preserve the service potential capacity

of all of its solid waste assets on a continuous basis.

Current depreciation provisions for each area are identified in Appendix D Asset Valuation.

Table J-1 and Figure J-1 summarise the overall projected depreciation requirements for the next 10

years.

Table J-1: Estimated Future Depreciation.



Estimated Future Depreciation Requirements

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

Year

Depreciation - Infrastructural Depreciation - Office Equipment

Depreciation - Buildings Depreciation - Computer Equipment

Figure J-1: Estimated Future Depreciation Requirements 2009 / 2019

Council’s solid waste asset’s depreciation policy is that assets other than land are depreciated on a

straight line basis with an appropriate depreciation rate determined for each major component type.

Asset lives are defined in Appendix D.

J- 2 Summary of Renewals and Depreciation

Previous Appendices have identified the work to be carried out over the next 10 years. This work is

partly new capital and partly cyclic renewal of existing assets.

Figures J-2 shows annual expenditure on the renewal of assets and asset depreciation (DISP) for

solid waste assets. The difference between these is the annual change in Service Potential. This

is a financial measure relating to asset sustainability, and also demonstrates the importance of

aligning the depreciation calculation with management practices and costs for renewal activity.

When annual renewals exceed the annual depreciation allowance, an increase in service potential

results. When renewals are less than annual depreciation, a decline in service potential occurs.

Prolonged decline in service potential will result in a decrease in the ability of the asset to meet

level of service targets.

The diagrams show that the depreciation provision significantly exceeds the renewals provision

over the 10 year period – largely because the assets are new and not yet due for renewal. The

accumulation of lost service potential indicates a growing renewal liability in future years.



Total Depreciation and Service Potential

100,000

50,000

0

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

-50,000

-100,000

-150,000

Year

Depreciation Renewal Expenditure Service Potential

Figure J-2: Cumulative Depreciation and Service Potential 2009/2019

J- 3 Improvement Actions



1 2 3 4 5 6

nil

Relative Urgency


Very urgent

Urgent


Not urgent


Key

1

2

3

4

5

6



Ashburton Resource Recovery Park Bailer


Appendix K - Likely Future Debt Requirements for the Activity 82

Appendix K - Likely Future Debt

Requirements for the Activity

REFERENCE / REASON: SECTIONS 102(4) (B) AND 104, AND SCHEDULE 10(2) (1) (D) (V) AND

(VII) AND (2) (2) (B)

The Council usually funds capital expenditure from borrowing and spreads repayment over several years. Borrowing is managed within the framework specified in Council’s Liability Management Policy which sets out procedures and guidelines to be used to safeguard Council’s investments, maximise returns and minimises risks both in investing and its borrowing liability.

Borrowing for capital expenditure enables Council to ensure there is intergenerational equity in terms of who funds capital expenditure; the repayments for the works are spread over the reasonably expected average life of the asset, meaning that those benefiting from the asset contribute towards it.

The capital works required for the proposed composting operation at the Rakaia Resource Recovery Park will require debt provisions to be raised.

Projected debt levels associated with the Solid waste activity are shown in Table K-1 below. Interest projections based on an assumed interest rate scenario, and estimated future loan repayment costs, are shown in Table K-2.

.

Table K-1: Estimated Future Public Debt


Appendix K - Likely Future Debt Requirements for the Activity 83

Table K-2: Estimated Future Loan Interest Cost



Nil

Key Relative Urgency

High Within the first FY of the LTP

Medium Should be done in the next three years

Low Should be done in the next six years

Good Idea

Beyond 6 years


Appendix M – Funding Policy Plus Fees & Charges 84

Appendix L - Future Overall Financial

Requirements Summary

REFERENCE / REASON: CONSOLIDATION FOR THE LTP

This section provides an overall financial summary for the next ten years. Individual financial

programmes have been prepared for:

· Operations and Maintenance

· Cyclic Renewals and Rehabilitation

· Future Asset Development (capital)

All forecasts are based on $NZ as at 1 July 2012 and exclude GST.

The projected total annual costs, and the methods by which they are proposed to be funded for the

next ten years, are shown in Table L-1 below. The funding apportionment rationale is summarised

in Appendix M and the detail is contained in the Council’s Revenue and Financing Policy.

L- 1.1 Financial Forecast District Wide



L- 1.1.1 Financial Forecast District Wide - Collection



L- 1.1.2 Financial Forecast District Wide - Management



Solid Waste Total Capital Expenditure

(Collection & Management)

120,000

100,000

80,000

60,000

40,000

20,000

0

Year

Asset Additions Asset Renewals Loan Repayment

Figure L-1: Total Capital Expenditure Next 10 Years (no inflation)

L- 2 Improvement Actions



1 2 3 4 5 6

Relative Urgency


Very urgent

Urgent


Not urgent


Key

1

2

3

4

5

6



Appendix M - Funding Policy Plus Fees

and Charges

REFERENCE / REASON: SECTIONS 102(4) (A) AND 103 AND SCHEDULE 10 CLAUSES

2(1) (D) (V) AND (VII) AND (2) (C) AND (D) LOCAL GOVERNMENT ACT 2002INTRODUCTION

M- 1 Introduction

Two specific questions are considered here:

· To what extent is the solid waste activity a public good or a private good (or a combination of

both)?

· Should the private good costs be apportioned between properties that receive different

degrees of private benefit?

The rationale must be robust and sufficiently consider ‘all reasonably practicable options’.

The Act requires that the funding needs must be met from those sources that the Council

determines to be appropriate, following consideration of:-

“a) in relation to each activity to be funded:

i) the community outcomes to which the activity primarily contributes; and

ii) the distribution of benefits between the community as a whole, any identifiable part

of the community; and individuals; and

iii) the period in or over which those benefits are expected to occur; and

iv) the extent to which the actions or inaction of particular individuals or a group

contribute to the need to undertake the activity; and

v) the costs and benefits, including consequences for transparency and

accountability, of funding the activity distinctly from other activities; and

b) the overall impact of any allocation of liability for revenue needs on the current and future

social, economic, environmental, and cultural well-being of the community.”

The new process for making funding policy is illustrated below.

The first two steps take place at the individual activity level, and the third at the group level.



FUNDING SOURCES

FOR EACH ACTIVITY

Consideration of:

• Community

Outcomes

• Beneficiary pays

• Exacerbator pays

• Intergenerational

equity

• Costs / benefits of

separate funding

Step One: Identify Activities

The first step is to identify activities. This Plan covers the Solid Waste activity.

Step Two: Analyse Activities

For each activity the following matters must be considered:

· The community outcomes to which the activity contributes.

· Who benefits.

· When benefits accrue.

· Action / inaction of particular residents.

· Costs and benefits of separate funding.

Step Three: Consider Impact on Well-Being

At the end of the second step, the local authority will have a list of funding sources for each activity.

In the third step, the local authority will add up these results and then consider the impact that the

overall list would have on community well-being, and modify the list if desired. This recognises that

funding decisions are not made in a vacuum, and that funding decisions impact on well-being.

Documenting the Funding Process – The Revenue and Financing Policy

Local authorities will document the results of this process in two places – in the material on groups

of activities in the LTP, and in a revenue and financing policy.

(Reference: ‘The Local Government Act 2002: An Overview, by the Local Government KnowHow Group).

(Activity Level)

IDENTIFY

ACTIVITIES

Will be done as

preparations of

LTP.

(Council Level)

FUNDING

SYSTEM FOR

COUNCIL

Aggregation of

funding for each

activity and

modification to

take account of

well-being.



M- 2 Solid Waste Fees & Charges

Current fees and charges are reviewed annually, and are shown below for the Solid Waste activity.

Refuse and Recycling 1 July 2011 - 30 Jun 2012

1. Kerbside Refuse Collection

Prepaid Refuse Bags - roll of 5 bags

Recycling Bin

Recycling Bag (Blue) - Rakaia - per bag

Recycling Bag (Green) - Rakaia - per bag

$9.50

$13.30

$0.60

$0.60

2. Ashburton Transfer Station Fees

Minimum charge (up to 80kg)

Green waste - per tonne

Residual waste - per tonne

Car body - each

Clean and sorted concrete waste and demolition waste - per tonne

$8.20

$95.10

$193.00

$59.30

$136.00

3. Rakaia Resource Recovery Park

Minimum charge

Residual waste - per/ m3

Greenwaste - per / m3

Waste is charged on volume basis (m3) at the Rakaia resource recovery park.

$8.20

$75.40

$25.60

4. Methven Greenwaste and Inorganic Material Drop Off Facility

Minimum charge

Inorganic / inert material - per/ m3

Greenwaste - per/ m3

Waste is charged on volume basis (m3) at the Methven Greenwaste and Inorganic Material Drop Off Facility

$8.20

$55.20

$25.60

5. Domestic Hazardous Waste Drop Off - Ashburton Resource Recovery Park only

Non-intractable chemicals- low hazard

Intractable and unidentifiable chemicals

A schedule of chemicals is available at the Ashburton Resource Recovery Park

$6.10/litre

$19.40/litre

6. Tyre Disposal - Ashburton & Rakaia Resource Recovery Park only

Car/ Light Truck/ 4x4 per tyre

Heavy Truck per tyre

Tractor Tyre

$5.10

$10.20

Not Accepted

Table M-1: Solid Waste Fees & Charges



M- 3 Funding Policy

The funding policy was reviewed by Council in 2011/12, and no changes were made

that affect this activity.

The Solid Waste Management activity is funded from the following sources:

M- 3.1 Solid Waste Management


Solid waste management and disposal has a considerable private benefit in providing a convenient

place to recycle or dispose of unwanted refuse. This benefit is assessed as high at 60% and is

recovered through user pays fees and charges.

· Capital Value General Rate (40%)

District wide benefit accrues to the community through knowing that refuse is being managed in a

coordinated, safe and environmentally acceptable way. This benefit is assessed as medium and

set and is recovered through a Capital Value General Rate.

Capital Value is used for the funding mechanism because the benefit relates to the community as a

whole and is deemed to have a property related benefit.

M- 3.2 Solid Waste Collection


There is a private benefit to people receiving a solid waste and recycling collection service. The

benefit is excludable and measurable and therefore highly rival (more waste means more cost).

There is a clear case for the “user pays” principle to be applied. This benefit is assessed as being

high and is recovered through rubbish bag sales.

· Targeted Uniform Annual Charge (40%)

The recycling service costs will be allocated to each town on a group basis (with each property

within the group paying a uniform charge) according to the costs of providing the service in each

respective town irrespective of the amount of recyclable material collected.

· Capital Value Targeted Rate (10%)

The litter bin service will be paid for through a Capital Value Targeted Rate on CBD/ Commercial

ratepayers in Ashburton, and Commercial/ Industrial ratepayers in Methven and Rakaia as it is

considered that businesses benefit from the provision of this service.



M- 3.2.1 General Comments

Capital Value General Rate is used to fund District-wide benefit accruing through the provision of

the service. Capital Value Targeted Rates are used to fund benefit accruing to specific areas within

the District.

A Capital Value rating mechanism is considered appropriate to reflect stakeholder community

interest and the ability to pay. Uniform Charges are used to reflect equal benefit accruing to each

property owner.

More detailed information on the funding regime and rationale are contained in the Council’s

Revenue and Financing Policy.

The general approach to the funding of the annual net cost of all of the public solid waste activity

starts from the premise that those who (either directly or indirectly) benefit should pay.

Targeted rates are set for solid waste collection on the basis of a fixed amount per separately used

or inhabited part of a rating unit the categories being:

· Ashburton Urban area

· Ashburton Central Business District (inner)

· Methven,

· Rakaia

· Hinds

· Mt Somers

· Mayfield

·

In addition, the Ashburton Business amenity rate provides revenue for solid waste collection in that

area (litter bins).

M- 3.3 How Capital Works will be Funded

The capital works will be funded from funds available from DISP, and the balance sourced from

Targeted Uniform Annual Charge for the collection services, and from Capital Value General Rate for

waste management services.

The Capital Value General Rate contribution is to recognise the District-wide benefit or public good

component of these works accruing to the District’s economy and to the environmental benefits

stemming from improved services.

M- 3.4 Capital Works Policies

Other key financial policies relating to solid waste capital programmes and expenditure are:



a) The repayment period for any new loans will be 25 years, or the estimated life of the asset

which the loan is being raised to fund (whichever is the lesser). The Council may in the future

review its overall loan portfolio to determine whether or not loan repayment periods are

appropriate.

b) The new capital expenditure forecasts for the next three years and for the next ten years

are indicative only at this stage. The plan will be updated at intervals of no less than three years,

and the capital forecasts that are presently in it will be undertaken as per the Waste Management and Minimisation Plan Action Plan. In several cases, further studies

are required to confirm that the work really is required; that the option that has been valued will be

the best option for satisfying the identified need; if it is required – exactly when it should be

constructed; and to confirm what the total cost is likely to be.

M- 4 Improvement Actions



1 2 3 4 5 6

nil

Relative Urgency


Very urgent

Urgent


Not urgent


Key

1

2

3

4

5

6



Ashburton RRP Education Centre


Appendix N – Demand Management 96

Appendix N - Demand Management

REFERENCE / REASON: PART 7 LOCAL GOVERNMENT ACT 2002 (SECTION 128)

The Council has developed programmes as required by the Waste Management Act 2008 for the following hierarchy of disposal options:

· Reduction

· Reuse

· Recycling

· Recovering

· Treatment

· Disposal


Increasing diversion of resources to increase waste minimisation will increase demands on the services provided by Council and its contractors.

N- 1 Pricing

The Council uses pricing for solid waste disposal and bags which links waste volume to cost.

Those who dispose of solid waste are charged a greater portion of the cost of disposal. This

ensures management of waste on site whether residential or commercial.

N- 2 Improvement Actions



1 2 3 4 5 6

nil


Appendix N – Demand Management 97

Relative Urgency


Very urgent

Urgent


Not urgent


1

2

3

4

5

6


Appendix O 98

Appendix O -

Not relevant to Activity


Appendix P – Significant Negative Effects 99

Appendix P - Significant Negative

Effects

REFERENCE / REASON: SCHEDULE 10, CLAUSE 2(1)(C) LOCAL GOVERNMENT ACT 2002

This section identifies any significant negative effects that the solid waste activity may have on the

social, economic, environmental or cultural wellbeing of the community, and how the actual results

will be measured and reported against these in future.

This activity has to be carried out to limit environmental effects as set out by the various consents,

so the District has no alternative but to accept the associated costs. Every effort will be made in

future years to determine ways and means to reduce the cost of managing solid waste.

The following potential significant effects have been identified for the Solid Waste Management

activity:

· Disposal of waste has the potential to cause negative environmental effects if not managed

appropriately.

· Response: All residual waste from Council collection is disposed of at the Kate Valley

regional landfill where appropriate environmental protection measures are imposed.

· Response: Council has a waste management plan and actively looks to minimise residual

waste through recycling and reuse.

P- 1 Improvement Actions



1 2 3 4 5 6

nil

Relative Urgency


Very urgent

Urgent


Not urgent


Key

1

2

3

4

5

6

Solid Waste Activity Management Plan Appendix Q – Significant Forecasting Assumptions, Uncertainties &

Risk Management 100

Appendix Q - Significant Forecasting

Assumptions, Uncertainties and Risk

Management

REFERENCE / REASON: SECTIONS 84(4)(B) AND 94(1)(B) AND SCHEDULE 10 CLAUSE 11

LOCAL GOVERNMENT ACT 2002ASSUMPTIONS AND UNCERTAINTIES

The Local Government Act 2002 requires the Council to clearly identify:-

a) All the significant forecasting assumptions and risks underlying the financial estimates;

b) Without limiting the generality of (a) above, the following assumptions on which the

financial estimates are based:-

· the assumptions of the local authority concerning the useful life of significant assets; and

· the assumptions of the local authority concerning the sources of funds for the future

replacement of significant assets.

c) In any case where significant forecasting assumptions involve a high level of uncertainty:-

· the fact of that uncertainty; and

· an estimate of the potential effects of that uncertainty on the financial estimates provided.

Uncertainties may arise in the following areas:

a) Any significant weaknesses identified in any of the Appendices in this plan.

b) The degree of reliability that can be placed on the stated asset replacement and

depreciated replacement cost values.

c) The degree of reliability that can be placed on the new capital forecasts.

d) The degree of reliability that can be placed on the operating and maintenance forecasts.

e) The degree of reliability of the renewals forecasts.

f) The degree of reliability of the age and condition data knowledge.

g) How accurate the stated remaining lives of the assets are.


Risk Management 101

h) The reliability of the depreciation calculations.

i) The degree of reliability that the Council can place on the population and other growth

projections that have been used in this plan. What is the level of confidence that the

figures used will not result in over-investment, inappropriate investment, or the Council not

being able to provide the required level of service when it is needed?

j) Changes in Government legislation

The assumptions included in this plan include the following:

· There is no provision for inflation in cost forecasts.

· The Council will continue to be involved in the provision of solid waste services within the District.

· The Council will be able to obtain the necessary resource consents.

- Forecasts are based on the best available knowledge of asset condition and performance, and on the levels of service identified in the 2012/2022 Long Term Plan.

· A waste assessment was undertaken in 2011 and projected waste generation has been estimated for the next five years.

· The market for recyclable/ reusable products is changeable and there will be variations in the contribution that the sale of these items makes to the operating costs of contractors.

· The true value of the asset (and the amount that has to be set aside annually for depreciation) can be expected to become more accurate as the Council’s knowledge of this improves.

· In preparing the maintenance and operating budget it is assumed that there will be no change to the method of service delivery. However as a result of the review of Action Plan items in the Waste Management and Minimisation Plan, changes to service delivery may be possible.

· As historical expenditure profiles are developed, trends in maintenance and operational costs can be developed. In turn, this will enable improvement in the accuracy of the projections contained in this plan.

· The Council will be able to continue to dispose of residual solid waste at the Kate Valley

landfill site, subject to terms and conditions that are acceptable.

Q- 1 Potential Risks

Risk assessments should consider the probability of an event and all of its consequences, and

should include:

a) physical failure risks, such as fundamental failure, accidental, or malicious damage;

b) operational risks, including the control of the asset, human factors, and all other activities

which affect its performance, condition or safety;

c) natural environment events (storm, floods, etc);

d) factors outside of the organisation’s control, such as failure in externally supplied materials

and services;

e) stakeholder risks, such as failure to meet regulatory performance requirements or

reputation damage;

f) asset related design, specification, procurement, construction, installation, and


Risk Management 102

decommissioning risks as appropriate.

Further guidance is provided in:-

· New Zealand Standard SNZHB 4360:2004, ‘Risk Management for Local Government’;

· The SOLGM Legislative Compliance Project.

For management purposes, a comprehensive list of all identified assumptions, uncertainties and

risks is maintained in this Appendix, with only the most significant ones taken into the Management

Plan itself.

Q- 2 Critical Risks

Potential sources of risk considered to be significant to the Solid Waste activity need to be

assessed and documented in a risk register, which needs to be included in this section.

A risk management framework based on AS:NZS 4360 is to be developed and used in the

assessment process. The description of consequences, likelihood and risk severity is shown below.


Risk Management 103

A risk register is yet to be developed to assess and prioritise the risks and the necessary

management actions.

The following potential sources of risk have been identified to date:

· Contamination of air, ground and surface water, soil and ecosystems.

· Non performance of contracts for processing of recyclables.

· Closure of the Kate Valley Landfill Site either temporarily or permanent.

· Planning for disposal of hazardous solid waste.

Q- 3 Risk Management Strategy

In relation to managing the risks, key actions include:

· Kate Valley Landfill has three days storage on site, ADC has one day storage in containers

and in the ‘open’.

· A contingency plan is being prepared over the next year for solid waste.

· The risk management strategy is currently under development.

Q- 4 Improvement Actions


Item

Complete risk assessment and identify

critical risks

Priority Comments

1 2 3 4 5 6

X Q1


Risk Management 104

Once critical risks have been

confirmed

Relative Urgency


Very urgent

Urgent


Not urgent


Rakaia Recycling Centre

X Develop risk management strategy Q2

Key

1

2

3

4

5

6

Solid Waste Activity Management Plan Appendix R – Levels of Service, Performance Measures

and Relationship to Community Outcomes 105

Appendix R - Levels of Service, Performance Measures and Relationship to Community Outcomes

REFERENCE / REASON: SECTIONS 84(4)(C) AND 94(1)(C) AND SCHEDULE 10 CLAUSES

2(1)(D)(I)(B) AND 2(2)(A) LOCAL GOVERNMENT ACT 2002INTRODUCTION

This section identifies Council’s goals and objectives for the solid waste activity, current Levels of

Service and proposed future Levels of Service. It also identifies targets and performance measures

by which the achievement of LoS and the impact of the service on the achievement of Community

Outcomes can be monitored.

The levels of service defined in this section will be used:

· To inform customers of the proposed type and level of service to be offered.

· To enable customers to assess the suitability, affordability and equity of the services provided.

· As a focus for the strategies to be used to deliver the required Level of Service.

· To measure the effectiveness of the Solid Waste Activity Management Plan.

· To identify the costs and benefits of the service offered.

R- 1 Community Outcomes

The protection of the environment and community through the collection, recycling and disposal of solid waste contributes to achieving the following community outcomes:

a. A thriving and diverse local economy

• The infrastructure and services meet the current and future needs.

• The district is an attractive place to live, visit and do business.

• Council’s investments provide a return to ratepayers and contribute to economic development.

b. Sustainable natural and built environments

• People can access and enjoy our natural environments

• Understand the need to protect our natural environment and act to do so. • Have safe and attractive built environments that meet our community’s needs • The community has access to information and services that promote environmental

responsibility and sustainability.

c. An enjoyable place to live • The community has access to a range of cultural and heritage facilities and activities. • The district has sporting and recreational facilities that meet the district’s needs. • The district offers opportunities for people of all ages to develop their skills and enrich their



knowledge.

d. A safe and healthy community • Access to a range of health and social support services. • Environmental threats to our community’s health is protected.

• Well-prepared to respond to emergency situations.

R- 2 Activity Goal and Principal Objectives

The Solid Waste Management Activity goal is:

To provide a cost effective range of waste management services and facilities that contributes to sustainable management, conservation of resources and protection of the community and the environment.

The Councils’ principal objectives are:

a) To provide the community with safe, convenient and effective solid waste services that

contribute to the overall wellbeing of the district

b) To provide recycling, reuse and waste management services and facilities that are sustainable, minimise impact on the environment and that meet requirements of the Resource Management Act 1991

c) To develop and maintain effective relationships with regional and national resource

management agencies

R- 2.1 Key Outcomes Performance

Performance measures and targets will be reported each year in Council’s Annual Report. This is shown in Table R-1.

R- 3 Current Levels of Service

In providing solid waste services the Council’s current objectives are to:

· meet customer expectations

· achieve defined standards of service

· implement Council policies

· complete agreed works programmes on time, to the appropriate standards and within budget

· protect the health and safety of the community and maintenance and operations personnel

· minimise adverse impacts on the environment

· comply with statutory requirements

· obtain and maintain the required resource consents to provide the required level of service

· comply with resource consent requirements

· achieve compliance with appropriate technical standards

· promote development within the District

· achieve defined standards of system management



R- 3.1 Customer Expectations

An annual corporate survey of residents is carried out to determine resident level of satisfaction

with a number of services, including solid waste.

Additionally in-depth public consultation is conducted each year to invite submissions on the

Annual Plan. The public has the opportunity to identify their expectations for solid waste services.

The public consultation process will determine:

· the minimum level of service acceptable to the community

· increases in the level of service desired by the community, and which they are prepared to pay

for

· what levels of service can be reduced

A community survey undertaken in 2011 produced a user satisfaction result of 83% for kerbside rubbish collection and 85% for kerbside recycling collection. The target satisfaction rate for both is 85%

R- 3.2 Statutory Requirements

The requirements of Schedule 10 of the Local Government Act 2002 specify how the asset

management implications of different Levels of Service (LOS) must be assessed – a role of the

AMP as a key input to the LTP.

R- 4 Proposed Levels of Service

R- 4.1 Service Targets and Performance Measures

Service targets and performance measures to be reported through the LTP are listed in Table

R-1.

R- 4.2 Future Alternative LoS

Areas where alternative Levels of Service may be developed for consultation are to be considered

in future reviews of this plan from action plan.

.



Table R-1 Performance Monitoring

Performance measures and targets denoted with a # are also used by Council to monitor progress toward achieving community outcomes and are reported on in Council’s three yearly Community Outcomes report.

Rationale Levels of Service Performance Measures

Target

Baseline 2011/12 Actual

2012/2013 2013/14 2014/15 2015/22

To contribute to sustainable management, conservation of resources and protection of our community and environment.

Protect the community and environment from the effects of harmful waste and promote waste minimisation

Reduce the volume of waste per rateable property being disposed of to landfill

537 Decrease by 2% Decrease by 2% Decrease by 2% Decrease by 2%

Increase the percentage of recyclable or reusable material diverted from the waste stream

413% Increase by 1% Increase by 1% Increase by 1% Increase by 1%

Compliance with resource consent conditions relating to Closed Landfills and Resource recovery park operations.

2 No significant non-compliances reported by environment Canterbury

No significant non-compliances reported by environment Canterbury NIL

No significant non-compliances reported by environment Canterbury NIL

No significant non-compliances reported by environment Canterbury

Kerbside collection service meets customer’s needs

Residents receiving kerbside rubbish collection are satisfied with the service (Annual Residents Survey)#

83% 85%+ 85%+ 85%+ 85%+

Residents receiving kerbside recycling collection are satisfied with the service (Annual Residents Survey)#

85% 85%+ 85%+ 85%+ 85%+



R- 5 Improvement Actions


Item

R1 Consider and test alternative LOS and

willingness to pay

Relative Urgency


Very urgent

Urgent


Not urgent


Priority Comments

1 2 3 4 5 6

X

Key

1

2

3

4

5

6

Solid Waste Activity Management Plan Appendix S - Organisational Structure, Solid Waste Management Practices, Data Systems and Decision-Making Processes 110

Appendix S - Organisational Structure,

Solid Waste Management Practices, Data

Systems and Decision-Making Processes

REFERENCE / REASON: INTERNATIONAL INFRASTRUCTURE MANAGEMENT MANUAL

GUIDELINES

S- 1 Organisational Structure

The Council’s organisational structure is shown in Figure S-1 below.

Solid Waste activity is managed within the Operations Department, the reporting

line is through the Operations Manager to the Chief Executive and Council.

Figure S-1: ADC Organisation Structure


S- 2 Accounting / Financial Systems

S- 2.1 Financial Management System

The Council currently operates the “Technology One” f inancial management system (FMS).

Budgets are prepared for each Activity on spreadsheets, and loaded into the FMS once adopted.

Outputs are defined within the budget structure and linked to a unique ledger code.

Expenditure is authorised within Council defined delegations by Solid Waste personnel and

charged to the ledger code.

Financial reports are produced monthly by the Solid Waste Manager for reporting to Council on progress and variances.

The Finance department has a fixed asset register (FAR), and performs an annual summary level

reconciliation based on work in progress (WIP) data provided by Water Services. The FAR is at a

high level, recording asset groups such as plant & equipment, buildings, litter bins etc at an area/facility level.

Work In Progress and completed works costs are provided by project, and include all engineering fees. There is

a certain amount of double handling with this approach, and for most of the year data is not up-to-

date in the financial system. This is an opportunity for an across the board improvement.

S- 2.2 Expenditure Types

S- 2.2.1 Operations

Asset operation has no effect on asset condition but is necessary to keep the asset appropriately

utilised.

In the case of solid waste these are the costs of collection, facilities management, waste minimisation, education and transport of residual waste to the regional landfill at Kate Valley..

S- 2.2.2 Maintenance

The day to day work required to keep assets operating at required service levels, falls into two

broad categories:

· Planned (proactive) maintenance: Proactive inspection and maintenance works planned to

prevent asset failure.

· Unplanned (reactive) maintenance: Reactive action to correct asset malfunctions and failures

on an as required basis (i.e. emergency repairs).

S- 2.2.3 Renewals

This expenditure is defined as:

· the renewal and rehabilitation of existing assets to their original size and capacity, or,

· the replacement of the entire component of the asset with the equivalent size or capacity.


S- 2.2.4 New Works

Projects (including land purchase) for the extension or upgrading of assets required to cater for

growth or additional Levels of Service, include:

· Works which create an asset that did not exist in any shape or form, or

· Works which improves an asset beyond its original size or capacity, or

· Upgrade works which increase the capacity of an asset, or

· Works designed to produce an improvement in the standard and operation of the asset

beyond its original capacity.

S- 2.2.5 Asset Disposals

Costs associated with the removal or disposal of decommissioned solid waste assets.

S- 2.2.6 Accounting Standards and Guidelines

Various accounting standards and guidelines govern financial management practice, these being

held by the Finance Department.

S- 3 Activity Management Business Practices

S- 3.1 Business Practice Analysis

Asset management business practices typically fall under three headings:

· Processes - The necessary processes, analysis and evaluation techniques needed for life-

cycle management.

· Information Systems - The information support systems used to store and manipulate the

data.

· Data - data available for manipulation by information systems to produce the required outputs.

The following is an interim subjective assessment of current practice, and generic desired practice

that needs to be considered for the solid waste activity in terms of making improvements to asset

management activities. Council is currently reviewing and considering Asset Information System platforms to assist in improving asset data management.


S- 3.2 Processes

Current Business Practice Desired Business Practice

Solid Waste Generic

Levels of Service

· Reflect current levels of service provided · Targeted specific performance measures

through performance contracts · Customer preferences well understood

· Annual customer surveys · On-going service level review process

· Limited performance measures in use · Customer feedback surveys

· Service level agreements formally adopted

Knowledge of Assets

· Asset data obtained at component level · All asset data entered into AIS & GIS

from as-built & construction plans database

· Full as-built recording process in place to

continually update GIS and AIS database

· Attribute information collected from

maintenance activities undertaken by

contractors and council staff

· Asset information system in place to

maintain asset maintenance history

Condition Assessment

· Limited condition assessment undertaken · Condition ranking and monitoring carried

out

· Maintenance feedback processes

established

· Assessment interval optimised

Risk Management

· Practised informally based on knowledge · All critical assets monitored and failure

of experienced staff modes understood

· Failure costs identified

· Strategy in place to minimise the failure of

critical assets

Accounting and Economics

· Carried out through Council’s Financial · All costs recorded against individual

Management and job costing systems assets

· Straight line depreciation method used · Straight line and condition based

· Valuations based on depreciated depreciation methods available

replacement cost methodology · Valuations based on depreciated

replacement cost methodology

· Current asset costings readily available to

asset managers

· Costs of deferred maintenance/

rehabilitation/ renewal available

Operations

· Contracts in place · Operational activities contestably priced

· Operational activities optimised to

minimise lifecycle costs

· Continuous performance monitoring in

place


Maintenance

· Maintenance activities contestably priced where required

· Contractors monitor performance against LOS standards

· Solid waste staff directly inputs

information into AIS system

Performance Monitoring

· Monitored through requests for service, · Performance measures and levels of

customer surveys, contract audits. service linked

· Performance standards fully documented

· Continuous monitoring and reporting of

performance against measures

· Performance reported to contractors

regularly

Optimised Life Cycle Strategy

· Not practised to an significant degree · Failure works predicted

· Risk assessments carried out and

treatment options identified

· Lifecycle costs determined and optimised

using NPV analysis

Design and Project Management

· Value management completed in designs

· Quality assurance systems for design and

project management to ensure optimum

lifecycle costs

· Processes to ensure new assets are

included in AIS systems

· Designers required to consider lifecycle

costs and carry out ORDM and risk

assessment

·

Asset Utilisation

· Capacity is not systematically monitored · Asset utilisation and capacity identified

or assessed · Non-performing assets investigated and

correction options assessed

· Disposal/rationalisation policy clearly

identified

Quality Assurance and Improvement

· This activity management plan is reviewed · Continuous improvement ‘culture’ evident

on a 3-yearly cycle. in AISM processes

· Appropriate quality checks and controls

established

· All maintenance work approved in accordance with Council’s delegations

register

· All new assets are designed to best meet

the needs of the organisation, district and

communities and will be completed on

time, within budget and to the required

standard.


S- 3.3 Activity Management Systems


Asset Register

· A basic asset register has been prepared · Asset registers available for all asset

recording the necessary details and groups

descriptions of the solid waste assets. · Implement AIS

· Asset register integrated with corporate

information systems

Financial Systems

System allocates costs against assets

System fully integrated to other information

systems via the asset register

Depreciation measured by condition of

assets (renewal accounting)

Maintenance Management

· No electronic MMS in use. · Planned and unplanned maintenance

recorded

· Inventory automatically recorded against

assets and work orders

· Resource allocations optimised

· Optimised maintenance strategy available

for individual assets

Condition and Performance Monitoring

No specific AIS system, use is made of

valuation spreadsheets

No capacity / utilisation modelling systems

in place

Customer Enquiries/Records

A request for service system is in · Customer transactions included as part of

operation (CRM) corporate system with property and asset

links

Risk Management

No system · Risk management module part of AIS

Optimised Renewal Decision Making

· No ODM system in place. · Risk management issues taken into

consideration

· Calculation of Net Present Value for

comparison of options

· Asset and non-asset treatment options

considered

· ORDM used for all asset types as

recognised corporate decision making

model

· Corporate system, which records financial ·

expenditures and relies on manual entry of ·

valuation data.

·

· System linked to asset register allowing

forward cashflows to be based on

predicted asset condition

·

·

·

·


Forward Works Programme

· Forward works programmes have been · A variety of scenarios can be modelled via

prepared showing the timing and cost of varying LOS or budget availability

proposed work · Works identified initially by WMMP

Action Plan

Geographic Information System GIS

· The Council “GIS” system will allow spatial · High level functionality GIS allowing full

viewing, searching, manipulating and integration with corporate AIS systems

analysis of data base records

Integration of Systems

· Asset management system not integrated · IT strategy includes AIS

with GIS or FMS · Seamless integration of Financial, GIS and

AM systems

Plans and Records

· All Council plans recorded and stored in · Effective plan management system to

hard copy validate/capture as-built data

· Plans and records for new works stored in · All plans and records included on

both hard copy and on disk corporate GIS system and assets linked to

appropriate database

Operations Manuals

· No manuals · Electronic and hard copy O & M Manuals

where required for plant

Levels of Service

· No formal system · Electronic document enhanced annually

through review process

Emergency Management Plan

· Documented in CDEM Plan · Emergency management plans available

for all asset groups

Activity Management Plan

· The Activity Management Plan will be · Up-to date AMP documents available for

used for the management of the solid all asset groups and used as basis for

waste activity forward planning

· The plan is to combine technical and

financial management techniques over the

life cycle of solid waste assets in the most

cost effective manner to provide the

specified levels of service


S- 3.4 Asset Management Data


Asset Classification/Hierarchy

· Solid waste assets have been · Formalised asset classification system

categorised to create a hierarchical

classification

Asset Identification

No unique numbering system in place · All assets uniquely identified on

computerised system

Asset Attributes

Some attribute data, such as material, · Relevant and up to date attributes

age, size recorded for all assets

Historical Condition and Maintenance Data

· Maintenance tasks based on AIS systems

output

· Maintenance costs linked via AIS systems

and financial system

· Historical data recorded relating to

individual assets used for AM planning and

lifecycle management

· Data integration between AIS and FAR

Future Growth and Demand Prediction Data

· ADC Development Plan · Growth modelling carried out extensively

· Targets established but future waste based on up to date data and projections

volumes are uncertain · Programmes in place to cater for growth

· WMMP Action Plan · Actual versus predicted growth monitored

Risk Data

· Risk data not available · Risk cost of failure identified for all assets

and used to drive renewal and

maintenance programmes

· Risk rating recorded against all assets and

failure costs identified

Life Cycle Costing

· Limited data available · Good database of complete lifecycle costs

· Information analysed

· Poor performing assets investigated

· Used in decision making

·

·

·

·

Maintenance data contained in spreadsheets

Duplication between FAR and AIS,

inefficient annual update process


S- 4 Improvement Actions



1 2 3 4 5 6

S1 Complete assessment of asset management Update the interim assessment

practices, and identify and prioritise X presented in this section as a

improvement tasks start point.

Relative Urgency


Very urgent

Urgent


Not urgent


Key

1

2

3

4

5

6


Appendix T - Bylaws 119

Appendix T - Bylaws

REFERENCE / REASON: SECTIONS 158-160 LOCAL GOVERNMENT ACT 2002

Solid Waste activity is controlled through the Ashburton District Council Bylaw Chapter 16, Solid

Waste, and also Chapter 9 Fire Prevention (for control of solid waste disposal by burning)

Chapter 16 covers the following:

· Prohibited activities

· Official containers to be kept clean and in good repair

· Official containers to be placed conveniently for emptying and removal

· Owner of apartment building to provide official containers

· Deposit of certain materials in receptacles prohibited.

· Method of storage of Refuse in receptacles prohibited

· Removal of trade refuse

· Establishment and control of disposal sites.

· Transport of refuse

· Official containers

The Bylaw was last reviewed in 2008 and will be reviewed again in 2012.

T- 1 Improvement Actions


1 2 3 4 5 6

T1

Relative Urgency


Very urgent

Urgent


Not urgent


Key

1

2

3

4

5

6


Appendix U – Stakeholders and Consultation 120

Appendix U - Stakeholders and

Consultation

REFERENCE / REASON: PART 6 SUBPART 1 LOCAL GOVERNMENT ACT 2002 (SECTIONS

82-90) LEGISLATIVE CONSULTATION REQUIREMENTS

There are a number of key legislative consultation requirements that must be complied with.

a) Principles of Consultation

Section 82(1) of the Local Government Act 2002 lists a number of principles that have to be

complied with (to the extent that, subject to Section 82(4 and 5), it considers in its discretion to be

appropriate in any particular instance):-

i) that persons who will or may be affected by, or have an interest in, the decision or matter

should be provided by the local authority with reasonable access to relevant information, in a

manner and format that is appropriate to the preferences and needs of those persons;

ii) that persons who will or may be affected by, or have an interest in, the decision or matter

should be encouraged by the local authority to present their views to the local authority;

iii) that persons who are invited or encouraged to present their views to the local authority

should be given clear information by the local authority concerning the purpose of the consultation

and the scope of the decisions to be taken following the consideration of views presented;

iv) that persons who wish to have their views on the decision or matter considered by the local

authority should be provided by the local authority with a reasonable opportunity to present those

views to the local authority in a manner and format that is appropriate to the preferences and needs

of those persons;

v) that the views presented to the local authority should be received by the local authority with

an open mind and should be given by the local authority, in making a decision, due consideration;

vi) that persons who present views to the local authority should be provided by the local

authority with information concerning both the relevant decisions and the reasons for those

decisions.

b) Extent to Which Community Views Required to be Taken Into Account

(Subject to the power to make judgements about the degree and extent to which it does so in any

particular case – Section 79) every local authority is required, in the course of its decision-making,

to give consideration to the views and preferences of persons likely to be affected by, or who have

interest in, the matter, and that consideration must be given at:-



i) the stage at which the problems and objectives related to the matter are defined; and

ii) the stage at which the options that may be reasonably practicable options of achieving an

objective are identified; and

iii) the stage at which reasonably practicable options are assessed and proposals developed;

and

iv) the stage at which proposals of the kind mentioned in (iii) above are adopted (Section 78).

c) Consultation with Maori

The local authority must ensure that it has in place processes for consulting with Maori.

d) Bylaws

A bylaw can only be made, amended, reviewed or revoked via the special consultative procedure.

e) Change in Mode of Delivery

Any proposal to change the delivery of a significant activity:-

i) from provision by the local authority itself to delivery by a Council-controlled organisation in

which the local authority is a shareholder; or

ii) from provision by the local authority itself to delivery by another organisation or person; or

iii) from provision by a Council-controlled organisation in which the local authority is a

shareholder to delivery of the activity by another organisation or person;

can only be done via the special consultative procedure (Section 88).

f) Certain Other Decisions May Only be Made, Only if the Decision is Explicitly

Provided for in the Long-Term Plan, and the Proposal to Provide for it

was Included in a Statement of Proposal

i) A decision to alter significantly the intended level of service provision for any significant

activity undertaken by or on behalf of the local authority, including a decision to commence or

cease any such activity;

ii) A decision to transfer the ownership or control of a strategic asset to or from the local

authority;

iii) A decision to construct, replace, or abandon a strategic asset;

iv) A decision that will, directly or indirectly, significantly affect the capacity of the local

authority, or the cost to the local authority, in relation to any activity identified in the Long-Term

Plan (Section 97).



U- 1 Stakeholders

Stakeholders with an interest in the Solid Waste activity include the following:-

U- 1.1 External Stakeholders

· Consumers producing solid waste

· Audit Office NZ

· Ministry of Health (eg subsidies)

· Medical Officer of Health

· Public Health Services (Crown Public Health)

· Environment Canterbury

· Transwaste Canterbury Ltd

· Department of Conservation.

· Ministry for the Environment.

· Fish and Game NZ

· Local Iwi / Ngai Tahu

· Royal Forest and Bird Protection Society

· Water and Waste Association.

· Council’s Insurers.

U- 1.2 Internal Stakeholders

· Ashburton District Councillors

· Asset Management Staff

· Solid Waste Staff

· Financial Manager

· Information Technology Manager

· Planning Manager

· Corporate Services Manager

· Internal Auditors

U- 2 Consultation and Customer Research

One of the key objectives of the Solid Waste activity management plan is to match the Level of

Service provided by the solid waste disposal system with the expectations of its customers.

Council’s knowledge of customer expectations and preferences is based on:

· Consultation on previous AMP’s, the current LTP, and other planning documents

· Public meetings

· Feedback from elected members

· Feedback from service providers

· Analysis of customer service requests and complaints



· Consultation with beneficiaries of proposed works

· Consultation via the annual plan process

· Annual customer satisfaction survey

· Focus groups and working parties

Further knowledge will be obtained through enhanced public consultation.

The public and interest groups will be consulted during all significant proposed capital projects or

new initiatives to ensure input for stakeholders is considered for each project.

U- 3 Improvement Actions



1 2 3 4 5 6

nil

Relative Urgency


Very urgent

Urgent


Not urgent


Key

1

2

3

4

5

6


Appendix V – Implementation & Improvement Programme 124

Appendix V - Implementation and

Improvement Programme

REFERENCE / REASON: INTERNATIONAL INFRASTRUCTURE MANAGEMENT MANUAL

GUIDELINES

This Activity Management plan has been prepared using information contained in the 2011 asset valuation, and knowledge of current AM practice and issues.

Levels of Service have been reviewed and performance measures confirmed to reflect the nature

and scope of the activity. Consultation on Levels of Service and LoS alternatives is undertaken

through the LTP process, to which this plan contributes.

As an input to this plan, much work has been undertaken in looking at the future development of

the District, although this has tended to focus more on population and settlement rather than

economic activity.

An aspirational target of zero waste and demand management will have a major impact on future solid waste activity.

Also of significance is the market for the recycled/ recovered materials from the waste stream.

A review of potential risks has been initiated, and this will need to be reviewed in more detail and a

full risk register developed with risks prioritised and mitigation actions planned.

In summary, this plan has largely been developed from existing knowledge. Actions to increase the

level of sophistication of this plan are recorded in Table V-1 below. This table includes

improvement priorities identified in other Appendices within the plan.

This implementation plan still needs further work in relation to desired asset management priorities

described in Appendix 5.

V- 1 Improvement Actions


1 2 3 4 5 6

B1 Capture condition and performance data for

critical assets

B2 Formal recording system/procedure for

historical data

D1 Improve process for data capitalisation

X

X

X Provide for more frequent updates to

the financial system./ integration of


Appendix V – Implementation & Improvement Programme 125

Revaluation annually

Complete the Emergency Response Plan for x

the Solid Waste disposal service

Complete risk assessment and identify X

critical risks

Develop risk management strategy X

Consider and test alternative LOS and

willingness to pay

Complete assessment of asset management

practices, and identify and prioritise

improvement tasks

Relative Urgency


Very urgent

Urgent


Not urgent


» End of appendix

data

X

Once critical risks have been

confirmed

Update the interim assessment

presented in this section as a start

point.

D2

E1

Q1

Q2

R1

S1

X

X

Key

1

2

3

4

5

6


Appendix W – Disposals 126

Appendix W - Disposals

Reference / Reason: International Infrastructure Management Manual Guidelines

Disposal involves all activities associated with the decommissioning of assets, including sale,

abandonment, demolition or relocation.

A Post Closure Management Plan has been adopted for solid waste disposal sites, covering:

· Management

· Consent and Designation Conditions

· Closure

· Monitoring

· Phasing of Rehabilitation

The District Plan includes provision for rehabilitation and landscaping of landfill sites on completion

of landfill operations.

W- 1 Forecast Income / Expenditure Arising from

Asset Disposal

Any costs associated with asset disposals are minor and are met through the operational budget.

There is no planned income arising from disposals.

W- 2 Improvement Actions



1 2 3 4 5 6

Nil


Appendix W – Disposals 127

Relative Urgency


Very urgent

Urgent


Not urgent


» End of appendix

Key

1

2

3

4

5

6


Appendix X –References 128

Appendix X - References

· Report of the Controller and Auditor-General entitled ‘Reporting Public Sector Performance –

2nd Edition’ – January 2002 – Ref ISBN 0-472-02889-6.

· ‘International Infrastructure Management Manual’ (commonly referred to as ‘The NAMS

Manual’) published by the Association of Local Government Engineering New Zealand (Inc)

(INGENIUM) – www.ingenium.org.nz.

· ‘Creating Customer Value from Community Assets – Guidelines for Agreeing Service Levels

with Customers’ published by the Association of Local Government Engineering New Zealand

(Inc) (INGENIUM) – www.ingenium.org.nz.