Councillors receive update on Three Waters Reform

Councillors received an update on the Government’s Three Waters Reform ‘Local Water Done Well’ at yesterday’s Infrastructure and Environment Committee meeting.

Local Water Done Well is the Government’s plan to address the country’s identified water infrastructure challenges. It is legislation that replaces the previous Government’s Three Waters Reform plans and focusses on enabling councils to deliver water services that are financially sustainable, meet quality standards and support growth.

The key changes to the legislation include:

• an expanded range of water services planning and delivery models providing councils with greater choice in how water services are best managed for the community.
• new financing options to support and enable investment in water services infrastructure and delivery.
• new economic regulations to ensure revenue collected by local government water service providers is adequate and is invested back into the water infrastructure needed.

Councillors were asked to endorse of the organisation’s intention to proceed in preparing the required Draft Water Services Delivery Plan which will be based on a preferred model of in-house water services delivery.

From the range of options available, each was assessed against a number of criteria including:

• the ability for Council to control service delivery,
• maintaining strong links to other council planning such as district planning and spatial planning,
• maintaining the link to mana whenua and the community,
• the ability to fund the activity (including the ability to raise appropriate and sustainable levels of debt)
• evidence based economies of scale

Elected Members heard that of all options, Option 1 to retain water services delivery in-house would be the least disruptive to current operations, and affords Council the greatest level of control and future flexibility as well as best meeting the other identified criteria.

The next phase will involve council preparing the required Draft Water Services Delivery Plan over the next 12 months in collaboration with the Department of Internal Affairs. Developing the plan enables council to clearly understand our current and projected situation, and also provides the opportunity to investigate the merit of the other options available through the reform legislation.

DIA will be responsible for regular monitoring of the development of the Plan, and within the 12 month timeframe Council will be required to submit the Draft Plan to DIA in anticipation of final sign-off. Once accepted by DIA, council can begin to deliver what is set out in the Plan.

Councillors also heard that beginning this process does not negate the opportunity to work in collaboration with, and understand what other councils are doing.

Go to p23 of the meeting agenda to view the report on this matter.

View the presentation on this matter – Local Water Done Well presentation

To view the meeting recording go to this link on Council’s YouTube channel

Other items on the agenda

Infrastructure & Environment progress report

Infrastructure and Assets Group Manager Stavros Michael provided updates on key projects underway

• The current stage of Tarawera Sewerage Scheme works has been paused in order to facilitate re-engagement with iwi and mana whenua. Stage 2 which involves the on-site installations of grinder pumps is progressing with a focus on working with property owners to agree to locality plans for their individual properties. Delays with securing agreed locality plans may impact the overall costs of the project and a report will be provided to Elected Members later in the year to discuss alternative options.
• Council is in ongoing negotiations with the Ministry for the Environment for the reallocation of $10million funding for East Rotoiti Rotomā from unspent crown funds. A response from the Ministry is expected in October.
• Council has agreed to enter into a funding agreement with the Government in relation to its directive to implement fluoridation systems with two key objectives; to protect the ratepayers from the capital costs to comply with the directive, and to have the systems in place so the organisation is able to activate when required without having an impact on the required timeframes. The activation of the systems will not take place until a report comes back to Councillors next year.
• National Land Transport funding decisions have been finalised, and advice from NZTA to Council has confirmed that there is no funding available for State Highway improvements or minor safety improvements in the Rotorua district for the 2024 – 2027 period. It was confirmed last month that general operations and maintenance and road safety education programmes would receive only a third of the requested funding. Council will now need to work on reprioritising planned works as funding is limited to local share only as set out in the Long-term Plan.

Go to p37 of the meeting agenda to view the report on this matter.

To view the meeting recording go to this link on Council’s YouTube channel

Confidential items

The Committee moved into public excluded to consider the confidential minutes of the Infrastructure and Environment Committee Meeting held on 7 August 2024 and the Contract Value & Term Extension 19/061 Streetlight Maintenance and Renewals 2020 – 2030.