New options including the use of a commercial operator or a joint venture with the council are being explored for the future operation of the Rotorua district landfill.
Rotorua residents generate about 45% more per household waste and recycle about 53% less than in similar districts.
New management options are part of a review of Rotorua Lakes Council’s waste management plan.
The volume of waste going to the landfill has decreased annually since 2008 and price increases implemented in 2011/12 to counter reduced waste volumes resulted in more commercial users going elsewhere.
About 47% of waste generated in the Rotorua district is now going to facilities outside the district.
The cost of operating the landfill has begun to exceed income, creating a gap of about $2 million per year, an amount forecast to increase if the current management takes no action.
There are also compliance issues that require capital investment to upgrade that could further increase the funding gap, effectively resulting in the landfill being a burden on general rates.
It is expected to call for competitive proposals for the operation of the landfill in late October so that cost factors of the various options are assessed.
Councillors expect a recommendation on the preferred proposal by February/March 2016.
Possible scenarios include:
• A commercial operator taking on all requirements with capital investment made by the council but the operator taking on all servicing costs and council setting user fees
• A contractor funding all required upgrades, operation and maintenance costs and stipulating user fees with council receiving an agreed minimum net financial return
• Council entering into a joint venture partnership with the private sector with risks and benefits shared 50/50
• Other variances suggested by the sector, where demonstrating that the council’s target outcomes can be best achieved.
Important issues for consideration will be ensuring the landfill’s sustainability, commercial viability and achieving optimum waste and environmental outcomes for the council and the community.
Councillors heard today there is no pre-determined objective to close the landfill but it is an option that must be considered.
Staff are exploring all possible options to bring back to councillors early next year.
