Official Information Request - 19 August 2019

Attachment:

• Annual Plan 2019-20 - Consultation Document

Response:

Sent: Friday, 30 August 2019 12:11 pm

Subject: TRIM: LGOIMA request about the WWTP

I refer to your email of 19 August 2019 regarding the wastewater treatment plant and respond to your questions below:

What are the current ownership, governance and management arrangements with regard to the Wastewater Treatment Plant?

Rotorua Lakes Council owns, governs and manages the wastewater system/network, including the wastewater treatment plant.

What are the projected ownership, governance and management arrangements with regard to the WWTP?

A change in the delivery and management of operations of the wastewater services is proposed, as outlined in the 2019/20 Annual Plan consultation document (attached). Community views about the proposal were sought as part of Annual Plan consultation and there will be further consultation.

The proposal is for a 25-year contract for service delivery that would link all network systems under one comprehensive set of performance objectives.

The contract would include the upgrade (design and build), operation, maintenance and renewal of the wastewater treatment plant, in accordance with resource consent conditions (when known). The contractor would be responsible for all operations to maintain networks in stable and reliable condition; deliver required levels of service and comply with all resource consent measures.

Council would retain ownership and control (as outlined in the Annual Plan consultation document).

Work undertaken to date has included:

• Expressions of Interest from suitably qualified groups/consortia/ companies;
• Request for tender and shortlisting following extensive testing, interviews and reference checking;
• Preferred consortia presented to Council;
• Ongoing work with consortia to develop viable and prudent proposal;
• Proposal supported in principle by Council, subject to community feedback and peer review of all aspects of the contract.

To what extent have the projected arrangements been authorised by the current Council?

As above, the proposal was supported in principle by Council, subject to community feedback and peer review of all aspects of the contract.

To what extent have the projected arrangements been contracted by the current Council? Please verify if a 35-year contract has been awarded that requires the contractee to modernize the plant at Sulphur Point so that it will function effectively for the following 25 years.

No contract has been awarded. As above, the proposal is subject to further community consultation and Council decision-making. See above regarding wastewater treatment plant upgrade aspect of the proposed contract.

To better predict demand on the WWTP, will the contractee introduce the metering of domestic and commercial water use?

The contracted party would not be able to introduce water metering or any other regulatory demand management. That is a function that only Council could introduce if it changed its current position.

To what extent do these arrangements anticipate the central government's Three Water Policies

Council is aware of the Government's objectives in the 3 Waters review and the proposed contract would not be in conflict with these, but detail is not yet available.

What will the impact of the new arrangements be on ratepayers?

Rating implications would be considered as part of final decision-making.

You have the right to seek an investigation and review by the Ombudsman of this decision. Information about how to make a complaint is available at http://www.ombudsman.parliament.nz/make-a-complaint/complaining-about-access-to-official-information-551307291224432 or freephone 0800 802 602.

Regards