Rubbish and Recycling Asset Managment Plan Summary

SummaryThis Asset Management Plan (AMP) describes the strategies and works programmes for the Rubbishand Recycling Activity so as to meet the objective of delivering the required level of service to existingand future users in the most cost effective way.This AMP informs the Council’s Long Term Plan (LTP) and contributes to the goals and objectivesCouncil aims to achieve in order to promote community well-being. The AMP covers:• A description of the activity, including the rationale for Council involvement and any significantnegative effects of the activity.• The strategic environment (Council’s vision and goals and future demand drivers) for the activity,the key asset management policies and strategies adopted within this environment and the mainrisk issues identified for the activity.• A statement of the intended levels of service and performance targets.• Information on the scope of assets involved in delivering services, and statements on;• the estimated cost for achieving and maintaining the target levels of service• how Council will assess and manage the implications of demand and service levels andstandards, the estimated costs of the provision of additional asset capacity and howthese costs will be met• how the maintenance, renewal and replacement of assets will be undertaken, and howthey will be funded• how expenses will be met and the estimated revenue levels and other source of funds.The ActivityDescriptionThe primary purpose of the rubbish and recycling activity is to collect, dispose or process rubbish andrecyclables from households and businesses in the City. In addition to a weekly kerbside rubbish andrecyclables collection service, the Council operates recycling facilities at Ferguson Street, the formerAwapuni landfill site and the Ashhurst transfer station. The activity also includes methane gas toenergy harvesting and production from the closed Awapuni landfill, composting, waste minimisationand public education services, planning, public policy development and advocacy.The Awapuni landfill closed in February 2007 when the then resource consent for the landfilling ofrubbish expired. City rubbish collected by Palmerston North City Council (Council) has since beendisposed of at the Bonny Glen landfill.RationaleWaste management services and assets have been developed over many years by Council to servethe needs of the community. Council has defined the assets as a whole comprising the Rubbish andRecycling Activity as strategic assets owned by Council.The rationale for continued Council involvement in the Rubbish and Recycling Activity and ownershipof assets is contained in:• the Health Act 1956, which requires Council to provide sanitary works, the definition of whichincludes works for the collection and disposal of refuse• the Local Government Act 2002 (section 97) precludes Council from transferring ownership orcontrol of a strategic asset, or construct, replace or abandon a strategic asset, unless it has firstconsulted with the community and included the proposal in the Long Term PlanRubbish & RecyclingDecember 2011i

• the Waste minimisation Act 2008, the purpose of which is to encourage waste minimisation anddecrease waste disposalSignificant negative effects of ActivityPotential significant negative effects of Rubbish and Recycling Activity are:• Leachate from closed landfills• Odour from the release of gas from the closed landfill and the composting operation• Costs of rubbish & recycling services exceeding the communities ability to payCouncil is able to mitigate to varying degrees most of these potential negative effects through a mix oflandfill design and aftercare programmes, asset development work, waste minimisation strategies,public education, the incorporation of features sympathetic to amenity, personal safety, environmentalvalues, landfill aftercare practices in accordance with consent requirements and Ministry for theEnvironment guidelines etc.Strategic environmentVision and GoalsIn October 2011, Council endorsed the following vision and goals for the 2012-22 LTP:Vision:• Palmerston North is recognised as a vibrant, caring, innovative, and sustainable city.City Goals:• Palmerston North is a socially sustainable city where people want to live because of itssafe and easy lifestyle and its many social, cultural and recreational opportunities.• Palmerston North is a leading city in the quest to become environmentally sustainable.• Palmerston North is an economically sustainable city which attracts, fosters and retainsbusinesses and jobs to create a prosperous community.Organisational Goals:• Palmerston North City Council is financially responsible and residents are satisfied thatthey get value for money from their rates.• Palmerston North City Council understands the diverse views of the City’s people, makesprudent decisions, and ensures that people know what it is doing and why.This AMP has been prepared consistent with the above strategic direction. The services provided bythis activity contribute to the Council Vision and Goals as follows:. Goals Contribution• Palmerston North is a sociallysustainable city where people wantto live because of its safe and easylifestyle and its many social,cultural and recreationalopportunities.• Palmerston North is a leading cityin the quest to becomeenvironmentally sustainable.• Safe collection and disposal or processing of rubbish andrecycling provides a high-level of public health protection• Potential for incorporation of recreational facilities on perimeterof closed landfill (e.g. BMX track and biking trails.)• Conversion of the Awapuni landfill from a rubbish disposal site toa resource recovery park• Harvesting of landfill gas and conversion to electrical energy• Reducing waste to land through kerbside collection, sorting andRubbish & RecyclingDecember 2011ii

. Goals Contributionprocessing of recyclables• User pays refuse collection services• Palmerston North is aneconomically sustainable city whichattracts, fosters and retainsbusinesses and jobs to create aprosperous community.• Provision of infrastructure to support sustainable growth andcreation of employment through waste minimisation activitiesSustainabilityThe key sustainability issue impacting on this activity relates to decreasing waste, particularly disposalof waste to landfills. The Rubbish and Recycling Activity makes the following contributions to the goalof reducing waste:• Provision of a weekly, kerbside collection of recyclable materials using wheelie bins and plasticcrates to increase the amount of recycling material collected from residential and rural lifestyleareas and reduce waste to landfill• Sorting and processing of recycling material through a materials recovery facility to reducedisposal of waste to landfill and the amount of raw materials used in product manufacture• Diversion of green and organic waste to a composting operation at the closed landfill• Adoption of a Waste Management and Minimisation Plan that includes programmes for thereduction, reuse, recycling and recovery of waste, last reviewed in 2009• Establishment of a resource processing and recovery hub at the closed landfill site in conjunctionwith private sector material recovery lease arrangements• Provision of educational material to the community to encourage participation in the Council’swaste minimisation projectsThe areas of community well-being below describe how aspects of these sustainability issues aredealt with in this AMP. As further Council policy and goals are developed in this area they will beincorporated into future asset management planning. This is identified as an area of work in the assetmanagement improvement plan (refer to Section 10).SocialInvestment in rubbish and recycling assets and services will be driven by level of service changesrather than population growth.EnvironmentalCouncil has statutory obligations under the Waste Minimisation Act 2008 to promote effective andefficient waste management and minimisation within the City. The Council has embraced sustainablewaste management practices and has produced a Waste Management and Minimisation Plan(WMMP), reviewed in 2009, to give effect to its vision of effective progress towards zero waste forPalmerston North. The next review of the WMMP is due in 2012.EconomicThe cost of the rubbish and recycling activity is an impost on the residents and business in the City.The strategies and funding policies in this plan are focused on gaining efficiencies from the rubbishcollection service and funding the activities on a user pays basis.Rubbish & RecyclingDecember 2011iii

CulturalThe discharge to the environment of landfill leachate and odours would be offensive to thecommunity. This AM Plan contains environmental monitoring programmes, capital works and wasteminimisation strategies to minimise the quantity and impact of contaminants generated by the wastemanagement activity.Growth and demand driversThe latest Statistics NZ population projections (2010 update) suggest the city will reach a populationof 94,000 people by 2031, an increase of 15,000 people from the population in 2006. The mediumpopulation growth projection for Palmerston North of average annual growth of 0.7% between 2006and 2031 is only slightly below the national population growth projection of 0.8% per annum.This Plan is based on providing for a population growth of 0.7% per annum over the first 10-yearsfollowed by a growth rate of 0.6% per annum over the 2 nd 10-year period. The average annual growthrate over the 2012 - 2022 year period, based on a medium growth rate planning scenario, is 0.63%.Household growth rate, under a medium growth scenario, is based on an average 1.03% per annumover the same 20-year planning period.Based on the 20 year average residential preferences from 1991 to 2010 and the Statistics NewZealand household growth projections, the following distribution of lots is projected for the Cityassuming a medium growth scenario (excluding apartments) and that preferences remain constantover the 20 year period from 2012 to 2032.Projected Residential Dwelling Preference for 2012 – 2032 (20 years)Statistics NewZealandProjection (2006base) 2010updateGreenfield(Lots perannum)Infill(Lots perannum)Rural/Residential(Lots per annum)Total Lotsrequired from2012 - 2032Medium(1.03%)208 109 48 7,300Other demand drivers for waste management services in the City include:• Social and cultural trends - the need to service population growth in the city and recognise culturalsensitivities.• Environmental requirements.• Economic strength of the city.• Central Government’s and the community’s desire to reduce reliance on landfills to managewaste.Demand managementDemand management is incorporated into this plan as follows:• Using the Waste Management and Minimisation Plan review to develop the future direction forthis activity• Pricing of waste management services to incentivise waste minimisation and recycling anddiscourage waste disposalRubbish & RecyclingDecember 2011iv

RiskThe significant risk issues identified for the Rubbish and Recycling Activity for which mitigation worksare programmed are:• Non-compliance with resources consents for landfill discharges to ground and air.• Failure to identify and meet the community’s requirements.• Potential risks identified in investigations to be completed relating to ground conditions and/orstructures at the Awapuni closed landfill as a result of a major earthquakeLevels of serviceThe current refuse and recycling collection services are provided:User GroupService ProvidedResidential Users Provision of weekly rubbish and kerbside collection of recyclables.Provision of a waste transfer station at Ashhurst.Provision of a recycling drop-off centre at Ferguson Street and Awapuni.Commercial andIndustrial UsersAll UsersAll UsersProvision of twice weekly rubbish and weekly recycling collection service in the CentralBusiness District.Green waste disposal and recycling facilities.Environmental education.Landfill gas harvest and conversion to energyDevelop a range of waste minimisation service options for consideration by Councilfollowing the next review of the Waste Management and Minimisation Plan in 2012.Key Performance MeasuresThe KPIs adopted for the Rubbish & Recycling activity, the current performance (where available) areshown in the table below. The Council goals that link to each performance measure are shown asfollowsRubbish & RecyclingDecember 2011v

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LoSCategoryUser Group Level of Service(Domestic Users)CustomerMeasurePerformanceCurrentperformancePerformance targets(Goal)(Years 1-20)2012/13 2013/14 214/15 2015/16 –2021-22QualityHealth(CG – S)&Residential andcommercial propertyowners andoccupiersCouncil provides rubbishcollection service tomaintain hygienestandards in the CityResidents are satisfied withthe quality of Council’srubbish collection services.92% At least85%At least85%(surveycompletedevery 2years)Reliability(CG – S)Residential andcommercial propertyowners andoccupiersCouncil provides areliable rubbish andrecycling serviceRubbish and recycling arecollected on the stated daysand at the stated times(New KPI) 100% 100% 100% 100%Residential andcommercial propertyowners andoccupiersCouncil responds torequests for service in aprompt and efficient wayCalls about missedcollections are responded toin 2-hours (initial responseonly)(New KPI) 100% 100% 100% 100%Accessibility(CG – S)Residential propertyowners andoccupiersCouncil provides weeklyrubbish and recyclingkerbside collectionservice to residentialareas of the CityResidents are satisfied withthe quality of the rubbish andrecycling service92% At least85%At least85%(surveycompletedevery 2-years)Commercialproperty ownersand occupiersCouncil provides twiceweeklyrubbish andrecycling kerbsidecollection service to theCBD area of the City(Being developed)All residentsCouncil provides greenwaste disposal facilitiesfor the CityGreen waste facility isavailable and open for thestated hours100% 100% 100% 100% 100%All residentsCouncil provides rubbishand recycling collectionpoints for customersCollections points areavailable and open for thestated hours100% 100% 100% 100% 100%Rubbish & RecyclingDecember 2011vii

LoSCategoryUser Group Level of Service(Domestic Users)CustomerMeasurePerformanceCurrentperformancePerformance targets(Goal)(Years 1-20)2012/13 2013/14 214/15 2015/16 –2021-22outside of the kerbsidecollection serviceSustainability(CG – En)(OG – F)All residents Council disposes ofwaste in an efficient andsustainable wayVolume of waste to landfill isreduced.770 kg per headin 2007- 500kg perhead ofCitypopulation500kg perhead ofCitypopulation500kg perhead ofCitypopulationCompliance with resourceconsent monitoring conditionsthat relate to environmentaleffects.100% 100% 100% 100% 100%Affordability(CG – Ec)(OG – F)All usersCouncils maintains anddevelops rubbish andrecycling services tomeet current and futureneeds in a cost effectivewayA 20-year asset managementplan is in place for thestormwater activityPlan in place. 3-yearly reviewcompletedPlan inplacePlan inplacePlanreviewedPlanreviewed3-yearlyAll usersThe Council manages itsRubbish and Recyclingactivity in a financiallyresponsible wayWork programmes areachieved within budget+11.1%(Operatingexpense result,2010/11)Describework doneand %budgetspentDescribework doneand %budgetspentDescribework doneand %budgetspentDescribework doneand %budgetspentNote: Levels of service primarily apply to customers in the urban area. These levels of service do not apply to rural residents or customers except for drop –off points and green waste disposalfacilities.Satisfied percentages include “very satisfied and “fairly satisfied “and exclude those who don’t know or who are “neither satisfied nor dissatisfied”.Measures shown in italics are proposed to be included in the 2012-22 LTP.Rubbish & RecyclingDecember 2011viii

The anticipated changes to current services over the next 20 years are:Proposed Changes Community Impact Cost ImpactRubbish and recycling service:- extended rubbish and recyclingcollection system. Includes rurallifestyle properties and CBDDevelopment of infrastructure at siteto support resource recoveryoperations, commercial leases andcomposting.Expanded refuse and recyclingcollection services improvecommunity access to kerbside refuseand recycling collection servicesImproved facilities at Awapuniimprove functional integration andcommercial investment at site, witheconomic spin-offs for community.Additional costs of expandedcollection area funded from usercharges and targeted rates.Additional costs of expandedinfrastructure at Awapuni funded fromuser charges, commercial leases andtargeted rates.AssetsScope and value of assetsThe broad asset groups and their value of the total are shown in the following graph:Awapuni & AwapuniRecycling Centre$9.035MAshhurst TransferStation $0.185MAwapuni Landfill$9.391MRecycling Bins &Crates $2.474MAsset condition and performanceAwapuni landfill• Compliance with resource consents – the landfill is operated in compliance with resourceconsents for the discharge of leachate, landfill gas, dust, odour, stormwater, landfill gas andcomposting activities• Appearance – the landfill appearance has historically been rated as satisfactory in residentsurveys, however the on-going programme of capping, top-soiling and planting is improving thevisual aesthetics needs more attention• Capacity – site layout needs review to improve functionality of the overall site, streamline workprocesses and avoid overlap of conflicting activitiesRubbish & RecyclingDecember 2011ix

Transfer stations• Condition – all assets are less than 13 years old and in good condition• Capacity – the Ashhurst transfer station has sufficient capacity to meet current and projectedwaste volumes.Recycling binsRecycling wheelie bins and crates for kerbside recycling collection were introduced in 2010 and are ingood condition.Materials Recovery Facility (MRF)Less than 12 months old and in good condition. Improvements to the sort line in late 2011 areintended to improve the performance of the facility.Operation and maintenance of assetsThe operations and maintenance strategy is intended to retain the current levels of service, mitigaterisk and minimise costs by implementing a balanced programme of planned, preventative andreactive works. The risk analysis has not highlighted any unacceptable risks associated withoperational and maintenance of the activity.Renewal of assetsThe asset renewal programme is intended to maintain overall asset condition and hence the servicepotential.Asset renewal needs are identified through analysis of condition assessments and failure history.Treatment selection and work prioritisation are determined from an economic analysis of optionsconsidering all asset life cycle costs.Major renewal works planned over the 20 year planning period include:• Roading, drainage and activity infrastructure renewals at the Awapuni site - $1.4M• Improvements to staff facilities in 2012/13 - $50,000• Recycling wheelie bin and crate replacements - $4.05M• Materials recovery facility renewals - $2.04MDevelopment of assetsAsset development needs to meet demand forecasts and deliver the agreed level of service which areidentified from an assessment of risks, performance monitoring and demand analysis. All feasibleoptions, including non-asset demand management options, are considered. Project selection andprioritisation is determined from an economic analysis of options considering all asset life cycle costs.Capital development projects undertaken to meet level of service needs and growth are funded fromborrowing and development contributions respectively.The Council funded capital development projects programmed over the next 20 years, all relating tolevel of service improvements, are shown in the following table:Rubbish & RecyclingDecember 2011x

20 Year Capital Development ProjectsProject Growth % LOS %TotalBudgetTiming1. Awapuni closed landfill site – cover andlandscaping2. Awapuni site - infrastructure forcommercial, educational & recreationalactivities3. Awapuni commercial lease sitedevelopment4. Awapuni site – develop commercialgrade composting infrastructure5. Additional wheelie bins for new growthareas100% $681,000 Years 1-20100% $1,200,000 Years 1-5100% $142,665 Years 2,4 & 6100% $225,000 Years 4 & 5100% $400,000 Years 1-206. Upgrade materials recovery facility 100% $1,200,000 Years 5,10,15 &207. Community waste minimisation facility 100% $750,000 Years 1 and 2TOTAL $4,598,665 Years 1 - 20Key AM plan assumptionsThe following general assumptions have been made in preparing the expenditure forecasts:• Assets to remain in Council ownership• External funding is based on current Government policy & won’t change over the term of this AMP• Population growth projections are based on a 0.63% median population growth rate over the full20 year planning period, comprising 0.7% for the first 10 years followed by 0.6% for the secondten years• Residential expansion is based on the proposed City West and Whakarongo areas, with the CityWest development commencing over Years 1-5 of this Plan and Whakarongo commencing inYears 6-10• Residential growth planned for Ashhurst will have a minor impact on the Rubbish and RecyclingActivity over the term of the Plan.• Provision for industrial growth is based on extension of the NE Industrial Zone, assumingdevelopment of the block north of the existing site (cross boundary)• Remaining asset lives are based on latest condition assessments• Current statutory and regulatory requirements will not change over the term of this AMP• The Horizons Regional Council One Plan will have minimal effect on levels of service in the shortterm• Programmes are based on maintaining current levels of service provided by the activity andpreserving current service potential of assets.• Climate change will have minimal effect on the activity over the period of the planRefuse bag collection service self-funding from 1 July 2012Rubbish & RecyclingDecember 2011xi

Financial forecastThe figures below summarise the 20-year Rubbish and Recycling Activity financial forecasts for O &M, capital renewals and capital new for the. All expenditure is stated in 2012/13 dollar values with noallowance made for cost indice fluctuations over the 20-year planning period.Operations and maintenance$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0Rubbish & Recycling Operations &Maintenance BudgetAwapuni Operations TotalRecycling Collection & Processing TotalWaste Minimisation TotalR&R Operational Planning & Policy TotalRubbish Collection & Disposal TotalCapital - Renewals$1,000,000$800,000$600,000$400,000$200,000$0Rubbish & Recycling Capital RenewalAwapuni Landfill - Gas Collection RenewalsAwapuni Landfill - Improved Staff FacilitiesRecycling - Materials Recovery Facility RenewalsRecycling - Wheelie Bin and Crate ReplacementsAwapuni Landfill - Roading, Drainage & Infrastructure ReplacementsRubbish & RecyclingDecember 2011xii

Capital – New$1,200,000$1,000,000$800,000$600,000$400,000$200,000$0Rubbish & Recycling Capital NewAwapuni Landfill - Gas Pipeline Link and DecommissioningRecycling - Materials Recovery Facility UpgradesRecycling - Wheelie Bins & Crates to New Growth AWaste MinimisationAwapuni LandfillThe significant trends in the financial forecasts are:Operation and Maintenance• Expenditure remains relatively constant after 2016/17 when the supply contract for thecogeneration unit at the landfill gasfield expires.Renewals• Provision is made for renewal and rehabilitation of some assets as they come to the end of theirfunctional life. It includes the standard distribution replacement profile assumed for the recyclingwheelie bins and crates.Capital Development• A total of $4.9M is budgeted over the 20 year planning period for final landfill closure anddevelopment works, extensions to the recycling collection services, organic waste utilisation andfor implementing the waste minimisation strategy.Improvements to asset management planningImprovement activities planned for the next 3 years include the following:• Review the Council’s Waste Management and Minimisation Plan• Capital renewal and development project planning – develop strategies and processes to takeinto account a sustainable development approach.• Review demand projections on an on-going basis consistent with Council’s Residential GrowthStrategy. Further develop predictive modeling (e.g. dTIMMs and Hansen AMS), risk basedapproaches to help prioritise programmes and better manage risks and costs in achieving thedesired outcomes• Update City-wide asset development plans and incorporate structure plans for new growth areasRubbish & RecyclingDecember 2011xiii

• Periodically review risk assessment to enhance optimised decision-making capability.• Investigate and develop appropriate mitigation strategies for Council’s assets in the event of amajor earthquake.• Operations and maintenance – ongoing review of contracting and internal service agreementstrategies to achieve the best balance of risk transfer, cost and performance based focus.• Asset information – on-going updating of asset condition data and rationalisation anddevelopment of systems to meet all asset management needs and integration of assetinformation activities within Council.• Level of service – undertake stakeholder consultation on new major issues to updateunderstanding of community expectations and preferences. Review levels of service with Councilevery three years• AM resource planning to ensure the recruitment, retention and development of sufficient andsuitably qualified staff.• Review asset management strategy to take account changes in Council direction andGovernment policy.Rubbish & RecyclingDecember 2011xiv