Canterbury Regional Landfill Joint Committee

Agenda

 

 

Notice of Meeting:

A meeting of the Canterbury Regional Landfill Joint Committee will be held on:

 

Date:                                     Friday 1 December 2017

Time:                                    11.30am

Venue:                                 Waipara Pavilion, Glenmark Domain,
Waipara

 

 

Membership

Chairperson

Members

Councillor Glenn Livingstone - Christchurch City Council  

Councillor Robbie Brine - Waimakariri District Council        

Councillor Neil Brown - Ashburton District Council 

Councillor Pauline Cotter - Christchurch City Council          

Councillor Mike Davidson - Christchurch City Council         

Councillor Dick Davison - Hurunui District Council   

Councillor Grant Miller - Selwyn District Council      

 

 

24 November 2017

 

 

 

 

 

Petrea Downey

Hearings Support Officer

941 8999

petrea.downey@ccc.govt.nz

www.ccc.govt.nz

Note:  The reports contained within this agenda are for consideration and should not be construed as Council policy unless and until adopted.  If you require further information relating to any reports, please contact the person named on the report.
To view copies of Agendas and Minutes, visit:
https://www.ccc.govt.nz/the-council/meetings-agendas-and-minutes/

 


Canterbury Regional Landfill Joint Committee

01 December 2017

 

 

 


Canterbury Regional Landfill Joint Committee

01 December 2017

 

TABLE OF CONTENTS

 

1.       Apologies................................................................................................................................... 4

2.       Confirmation of Previous Minutes.......................................................................................... 4

STAFF REPORTS

3.       Kate Valley Transport Costs .................................................................................................... 9

4.       Review of Policy on Appointment of Directors.................................................................... 13

5.       Verbal Update from Transwaste Canterbury Ltd................................................................. 31

 

 

 

 


Canterbury Regional Landfill Joint Committee

01 December 2017

 

 

1.   Apologies

At the close of the agenda no apologies had been received.

2.   Confirmation of Previous Minutes

That the minutes of the Canterbury Regional Landfill Joint Committee meeting held on Wednesday, 30 August 2017 be confirmed (refer page 5).


Canterbury Regional Landfill Joint Committee

01 December 2017

 

 

 

Canterbury Regional Landfill Joint Committee

Open Minutes

 

 

Date:                                     Wednesday 30 August 2017

Time:                                    9.37am

Venue:                                 Council Chamber, Level 2, Civic Offices,
53 Hereford Street, Christchurch

 

 

Present

Chairperson

Members

Councillor Glenn Livingstone - Christchurch City Council  

Councillor Neil Brown - Ashburton District Council 

Councillor Pauline Cotter - Christchurch City Council          

Councillor Mike Davidson - Christchurch City Council         

Councillor Dick Davison - Hurunui District Council   

Councillor Grant Miller - Selwyn District Council      

 

 

30 August 2017

 

 

 

 

 

Petrea Downey

Hearings Support Officer

941 8999

petrea.downey@ccc.govt.nz

www.ccc.govt.nz

To view copies of Agendas and Minutes, visit:
www.ccc.govt.nz/Council/meetingminutes/agendas/index

 


  

The agenda was dealt with in the following order.

 

6.   Verbal Update from Transwaste Canterbury Ltd

A verbal update, including a Powerpoint presentation, was given by Garry Forward of Transwaste Canterbury Ltd with Rangi Lord, Canterbury Waste Services and Andrew Henderson, Burwood Resource Recovery Park.  The update included information on Kate Valley, Tiromoana Bush, Burwood Resource Recovery Park and health and safety.

 

1.   Apologies

 

Committee Resolved CRLC/2017/00013

An apology for absence was received from Councillor Robbie Brine.

Councillor Cotter/Councillor Miller                                                                                                                       Carried

 

2.   Confirmation of Previous Minutes

Committee Resolved CRLC/2017/00014

Joint Committee Decision

That the minutes of the Canterbury Regional Landfill Joint Committee meeting held on Friday, 2 June 2017 be confirmed.

Councillor Cotter/Councillor Miller                                                                                                                       Carried

 

 

3.   Landfill Transport Cost Equalisation

 

Committee Resolved CRLC/2017/00015

Joint Committee Decision (Staff Recommendation accepted without change)

That the Canterbury Regional Landfill Joint Committee:

1.         Approve the 2016/17 transport cost payments to Ashburton and Selwyn District Councils as set out in the report.

2.         Request Transwaste Canterbury Limited to implement the payments set out above by adjusting its dividend payments to the participating territorial authority shareholders.

Councillor Cotter/Councillor Davison                                                                                                                  Carried

 

 

 


 

 

4.   Appointment of representative to attend Transwaste Canterbury Ltd  Annual General Meeting

 

Staff Recommendations

That the Canterbury Regional Landfill Joint Committee:

1.         Appoint a member of the Committee to attend and vote at the Transwaste Canterbury Ltd Annual General Meeting in November 2017.

2.         Appoint a member of the Committee as an alternate to cover for unseen contingencies.

 

Committee Resolved CRLC/2017/00016

Joint Committee Decision

That the Canterbury Regional Landfill Joint Committee:

1.         Appoint a member of the Committee, being Councillor Cotter, to attend and vote at the Transwaste Canterbury Ltd Annual General Meeting in November 2017.

2.         Appoint a member of the Committee, being Councillor Miller, as an alternate to cover for unseen contingencies.

Councillor Cotter/Councillor Livingstone                                                                                                           Carried

 

5.   Review the Committee's policy on appointment of directors

 

Committee Resolved CRLC/2017/00017

Joint Committee Decision (Staff Recommendation accepted without change)

That the Canterbury Regional Landfill Joint Committee:

1.         Reviews its 2008 policy on appointment of directors to the Transwaste Canterbury Ltd board.

2.         Requests staff to report back to the next meeting of the Committee on a recommended process and timeline to review the policy.

Councillor Miller/Councillor Brown                                                                                                                      Carried

Note:  It is the intention of the Committee to have a site visit to Kate Valley in November 2017, in which case, the next meeting of the Committee would follow the site visit.

 


 

 

 

7.   Resolution to Exclude the Public

 

This item was no longer required as the Public Excluded report 8 was withdrawn from the agenda pursuant to Standing Orders 6.8 Withdrawal of agenda items.

 

 

   

Meeting concluded at 10.41am.

 

CONFIRMED THIS 1st DAY OF DECEMBER 2017

 

Councillor Glenn Livingstone

Chairperson

 


Canterbury Regional Landfill Joint Committee

01 December 2017

 

 

3.        Kate Valley Transport Costs

Reference:

17/1182434

Contact:

Zefanja Potgieter

zp@ccc.govt.nz

941 8271

 

 

1.       Purpose of Report

1.1       This report proposes an independent review of the costs of waste transported from Ashburton, Selwyn, Christchurch, and Waimakariri District Councils to Kate Valley landfill.

1.2       The report is staff generated and represents the interests of councils being charged either directly or indirectly by Canterbury Waste Services (CWS), wholly owned by Waste Management NZ Ltd (WMNZ).

 

2.   Staff Recommendations

1.    That the Canterbury Regional Landfill Joint Committee requests Transwaste Canterbury Ltd  to undertake an independent assessment of the transport charges model used by Canterbury Waste Services for waste transported to Kate Valley landfill, as well as the resulting transport charges for Ashburton, Selwyn, Christchurch, and Waimakariri District Councils.

2.    That the Canterbury Regional Landfill Joint Committee appoint a working group to engage in the review process, as set out in the report.

 

 

3.   Recent reports

3.1       On 4 May 2016 the Committee considered a report “Review of Transwaste Canterbury Ltd contracts”.  The staff recommendation was to request Transwaste to commence a review of the transport operation costs provided for in the 1998 Memorandum of Understanding.  The Committee resolved to “Accept the invitation from Transwaste Canterbury Ltd to provide a briefing to the CRJLC before the end of the Triennial Term of Council, and the next meeting being 12 August 2016”.  At the subsequent briefing Canterbury Waste Services (which is owned by Waste Management NZ (WMNZ) and which manages the landfill site and provides waste transport services), advised that a special index had been commissioned from Statistics NZ which better reflect the costs incurred by Canterbury Waste Services (CWS)  which precluded the use of the industry accepted transport charge.  The same presentation highlighted an almost three year lag between dropping indexes and prices changing to CWS customers.

3.2       On 30 August 2017 a further report to consider a review of transport operation costs was withdrawn from the agenda in order to be amplified for the following meeting of the Committee, resulting in the current report. 

4.      Background

4.1       Kate Valley opened for business in June 2006.  Waste Management NZ Ltd is contracted by Transwaste Canterbury Ltd (Transwaste) to perform the Kate Valley landfill operations including cell construction, and transport of waste bins to the site.  This stems from the original 1998 Memorandum of Understanding (MoU) between the territorial authorities as a group (Ashburton, Selwyn, Christchurch, Waimakariri and Hurunui), and the commercial partner, now called Waste Management NZ Ltd (WMNZ). 

4.2       In 2007 there was a fundamental change with the company structure and ownership of CWS where the 50/50 joint ownership with Enviro Waste Services Ltd changed and CWS is now wholly owned by Waste Management NZ.

4.3       Clause 7 of the MoU provides amongst others for the parties to the MOU to meet and review the relevant landfill operations and transport contracts every seven years, and a process to do so was commenced in 2010.  The September 2010 and February 2011 earthquakes resulted in a full review not being completed, with just initial discussions between relevant parties undertaken.  

4.4       As a full review did not take place by 2012 after the first 7 years of operation, and with a second review due no later than 2019, it is proposed that the review of the transport contract be initiated as a matter of urgency between the CRLJC and WMNZ.

4.5       Seeing that there are a number of concerns with the current model for charging (as advised by Transwaste on 12 August) that requires assessment, and it will be best done by an independent assessor, as provided for in Clause 7.4 of the MoU. The concerns with the current transport contract include:

4.5.1   Transparency of index and calculation of charges;

4.5.2   Issues of equity between territorial authority and commercial users of Kate Valley landfill and associated transport services charges.

4.6       As Transwaste is 50% owned by Ashburton, Selwyn, Christchurch, Waimakariri and Hurunui Councils, and 50% owned by WMNZ, Transwaste should therefore be requested to initiate a review process.

4.7       Process for review: It is recommended that the Committee appoint a working group comprising of elected members and staff (potentially also a representative of EcoCentral which is contracted to operate Christchurch City Council's transfer stations) to assist a mutually agreed independent assessor on behalf of the committee, and then to report back to the full committee.  Should the working group need to contract the services of an external specialist advisor to assist in the review process, such costs would be proportionally shared by Ashburton, Selwyn, Christchurch, and Waimakariri Councils.

4.8       Apart from the provisions of the MoU, Councils have a legal obligation under S.17A of the Local Government Act 2002 to review the cost-effectiveness of services, and it is essential that Councils have transparency of cost incurred on behalf of ratepayers.  Recorded waste cartage costs to Kate Valley for 2016/17 were:

               

                CCC:  $6,851,310

                SDC:  $   675,460

                WDC: $  460,393

                ADC:  $   531,794

 

 

Attachments

There are no attachments to this report.

 

Signatories

Author

Zefanja Potgieter - Senior Resource Planner Solid Waste

Approved By

Ross Trotter - Manager Solid Waste

John Mackie - Head of Three Waters and Waste

David Adamson - General Manager City Services

  


Canterbury Regional Landfill Joint Committee

01 December 2017

 

 

4.        Review of Policy on Appointment of Directors

Reference:

17/1182475

Contact:

Zefanja Potgieter

zp@ccc.govt.nz

941 8271

 

 

1.   Purpose of Report

1.1       The purpose of this report is for the Committee to appoint a working group to review the committee’s policy on appointment of directors.

 

2.   Staff Recommendations

That the Canterbury Regional Landfill Joint Committee appoints a working group to review the Committee’s policy on appointment of directors to the Transwaste Canterbury Ltd Board.

 

 

3.   Background

3.1       On 30 August 2017 the Committee resolved to review its 2008 policy (report with attachments and minutes attached) on the appointment of directors to the Transwaste Canterbury Ltd board, with staff reporting to the next meeting with a recommended process and timeline for such a review.

3.2       The current directors and terms of appointment are as follows:

Cr Glenn Livingstone

Oct 2019 local government elections

Cr Dick Davison

Oct 2019 local government elections

Mr Gill Cox

November 2019 Transwaste AGM

Mr Trevor McIntyre

November 2019 Transwaste AGM

 

4.   Review process proposal

4.1       It is proposed that a working group be established comprising of elected members, with supporting staff.  Material that could be useful for the working group could include similar policies used by the Committee’s member councils, as well as any other inputs considered relevant and helpful.  Regarding consideration of future recruitment and assessment of potential candidate directors there would be the option to explore potential use of the services of Christchurch City Holdings Ltd (CCHL).

4.2       It is proposed that a draft new policy be presented to the Committee for consideration and adoption during the first half of 2018, to be ready in 2019 for use when the Committee’s directorships will be considered, as indicated in paragraph 3.2 above.  

 

Attachments

No.

Title

Page

a

March 2008 report

15

 

 

Signatories

Author

Zefanja Potgieter - Senior Resource Planner Solid Waste

Approved By

Ross Trotter - Manager Solid Waste

John Mackie - Head of Three Waters and Waste

David Adamson - General Manager City Services

  


Canterbury Regional Landfill Joint Committee

01 December 2017

 

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Canterbury Regional Landfill Joint Committee

01 December 2017

 

 

5.    Verbal Update from Transwaste Canterbury Ltd

 

A verbal update will be given by Transwaste Canterbury Ltd to the Committee.