4 July 2016

Assessing landfill future part of new contract

Assessing the future viability of the Rotorua district landfill will be a priority when Waste Management takes over operating the site from Rotorua Lakes Council this month.

Waste Management New Zealand Ltd has won the contract to lease and manage Rotorua district’s landfill.

Waste Management is New Zealand’s largest refuse collector and environmental services company, and has been operating in Rotorua for more than 27 years. They have been awarded the 15-year contract from two other tenderers and will manage the landfill on behalf of the council.

From January next year Waste Management and the council will undertake a joint study and feasibility plan to assess future options for the landfill. While that work is being done, the landfill will be mothballed and Rotorua’s waste will be transported out of the district.

“It’s important we assess future options for the landfill and address historical liabilities,” Rotorua Lakes Council’s Chief Operating Officer Dave Foster says.

“It has been operating at increasing financial risk due to an ongoing reduction in the amount of waste going there. Other issues include how to create more space on a site which is filling up and how to ensure we can, in the long term, meet the conditions of our resource consent, which aims to protect our environment.

“We need to assess future needs, consider all options, assess the landfill’s future financial viability and if it is found to be viable, come up with a long-term plan,” he says.

That work is scheduled to begin in January 2017 and take 12 to 18 months.

Waste Management’s General Manager, Lower North Island, David Howie, says the changes at the landfill will take place over the coming months.

“Nothing will change for the first two to three months, but then we will stop public access to the tip face over a period of time as we construct new facilities on site,” he says.

“Ultimately, we will suspend operations at the face of the landfill while the long term options are being considered.”

Council’s Sustainable Living portfolio lead Councillor Janet Wepa said she was very pleased with the new arrangements for managing the district’s waste, including collections and operation of the landfill.

“We need to address the issues we have with our landfill and we need to take the time to get it right. Closing the landfill during this time is the right thing to do.

“People will still be able to take their rubbish, recycling and green waste to the landfill just as they do now but there will be a different process and we won’t have members of the public going to the tip face anymore, which will reduce health and safety risks at the site.

“The current situation isn’t sustainable and I’m confident council staff and Waste Management will come up with a long-term plan that will be financially sustainable and environmentally sound,” she says.

“We want to provide good services, we want a long-term solution for our waste management processes and we want to protect the environment. This new arrangement also makes financial sense – the cost to Council will be minimal.”

The challenges:

• Reduced income due to ongoing reduction in waste going to the landfill
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• Health and Safety –especially removing the public from the tip face which is a significant H&S risk
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• Capital investment – significant investment is required for the landfill to continue to effectively operate and to continuing to be self- sustaining
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• Environmental risks – continual monitoring costs and resource consents required
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Why do things need to change?

A main driver to change things at the landfill is to remove the general public from the tip face and increase the health and safety of the operation.

The landfill as it is currently is also almost full and there is a need to reduce environmental risks.

Having a long term partner enables a more cost-effective solution.

What will change for customers?

Not a lot will change for customers. You will be able to take the same refuse to the landfill as you currently do.

Stage one of the landfill project is to construct a transfer station on site where all rubbish will be dropped off which means you will no longer drive up to the tip face.

There will also be a change to where green waste is collected. This area will be reconfigured to make it more efficient.

Are tip fees changing?

There will be a slight increase to tip fees from 01 August 2016 to account for the increased cost of processing.

What about landfill and transfer station coupons?

Coupons have been available to purchase at the council and some service stations to encourage people to pre-pay their landfill and transfer station fees. There is a surcharge for paying cash at the site. Coupons will become obsolete under the change in operations and are no longer available to buy.

Council will honour coupons people currently have until 31 October 2016.

All rural transfer stations will accept both cash and eftpos (including credit cards) from 1 July 2016.

Will the portion of my rates that covers rubbish and recycling services (including the landfill) increase?

There is a 1.9% adjustment being made – a decision made as part of the 2015-2025 Long-term Plan which was consulted on last year and approved by Council. Any further change would require public consultation.

What is the cost of this new contract to Council?

Waste Management will be responsible for any capital investment, all operating costs including labour and security, the cost of transporting waste and the cost of any emissions charges.

Waste Management will pay Council royalties per tonnage of waste deposited at the landfill and on current volumes that would be about $150,000 per year.

The Council will receive a 20% discount for municipal waste which, again on current volumes, is expected to provide an annual saving of about $150,000 per year.

There would be some monitoring and legal costs for Council but this is expected to be minimal.

What is the term of the landfill contract?

The length of time has been aligned to that of the waste collection contract, so both are for 15 years.

Having a longer contract allows Waste Management to invest required capital.

What will Council’s involvement in landfill operations be?

Council still owns the landfill and the associated resource consents so council staff will still oversee the operation.

Will new jobs be created as a result of the new contract?

Initially there will be no changes until Waste Management implements a higher level of waste reduction processes, when a small number of new jobs will be created. In addition, there will be a number of short term contract roles to complete immediate works on the site over the next six to nine months.

ENDS

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