Latest news with #CCO
Otago Daily Times
4 days ago
- Business
- Otago Daily Times
CCO preferred option for Three Waters
A recommendation for a council-controlled organisation (CCO) to deliver Three Waters services in the Queenstown Lakes district will go out for public consultation on Monday. Councillors voted 8-2 in favour of the recommendation at a full council meeting in Arrowtown yesterday, taking another step in revamping Three Waters delivery in line with the government's 'Local Water Done Well' reforms. In her report for councillors, council strategy and reform manager Pennie Pearce said compared to an "in-house" model, a CCO would provide the "greatest opportunity to deliver high-quality, resilient, sustainable and reliable water services". The council would transfer the district's drinking water, wastewater and stormwater assets — and associated liabilities — to the CCO, but would be its sole shareholder. The CCO would operate independently from the council, with its own specialist board and management. It would not need to consult with the community, but the council would set its expectations and priorities through a statement of expectations. The report said average annual water charges for households would increase significantly under either model, but were estimated to be 10% lower under a CCO in the long-term. The council's debt would significantly decrease, giving it more "headroom" for non-Three Waters capital spending. Mayor Glyn Lewers said he strongly backed a CCO, saying the litany of Three Waters failures the current council had been forced to deal with were the outcome of poor decisions by previous councils. The 2023 Cryptosporidium outbreak, the Shotover wastewater disposal field failure, and the need to truck waste out of Hawea were all the result of "political interference", and had led to households having to pay more for water services. The council was investing nearly $1.5 billion on Three Waters infrastructure over the next 10 years, and he wanted a professional board overseeing that, Mr Lewers said. Cr Gavin Bartlett said the projected reduction in council debt under a CCO would allow the council to "focus on the other services we provide". The two councillors to vote against the recommendation expressed scepticism that a CCO would result in better decision-making. Cr Quentin Smith said it did not guarantee a higher level of expertise, and he favoured an in-house model. Cr Niki Gladding said keeping Three Waters delivery inside the council ensured transparency and accountability. "I think we're going to lose something with a technical board that meets quarterly." The four-week consultation period will end on June 29, with the council expected to make a final decision on July 31.
Otago Daily Times
7 days ago
- Business
- Otago Daily Times
Council to decide on setting up water CCO
Queenstown Lakes households may face higher water charges for the next nine years if the district council agrees to establish a new council-controlled organisation to deal with Three Waters. However, council property and infrastructure general manager Tony Avery said, based on modelling, the proposed water services council-controlled organisation (WSCCO) would lead in the long term to "lower charges on average" for the 10 years from 2034. At a full council meeting in Arrowtown on Thursday, elected members will be asked to agree to consult on the proposal to establish the WSCCO. If they agree, consultation would begin on Monday. Mr Avery said as part of central government's Local Water Done Well Plan, to address New Zealand's water infrastructure challenges, the council had carefully assessed options for the future delivery of water services. The other shortlisted option evaluated was for the council to continue to deliver water services in-house, which would be subject to the Commerce Commission's regulatory requirements. Mr Avery said the council needed to be confident the model chosen would be capable of delivering financially sustainable water services to meet the increased financial requirements in legislation intended to be passed by central government. "Under all scenarios, including council's current long-term plan, water charges are projected to increase substantially." If agreed, the WSCCO would manage and deliver drinking water, wastewater and stormwater services in the district, and own the council's current water assets and their associated debt and liabilities. The proposed organisation would operate independently from the council. The Local Water Done Well reforms are underpinned by the Local Government (Water Services) Bill, expected to come into force later this year, which will require councils to transition to a separation of water charges from their general rates. At a workshop early this month, council strategy and reform manager Pennie Pearce told councillors the internal assessment found the district's households would face slightly cheaper annual Three Waters charges for the first 10 years under the in-house model, but those costs were projected to be lower under a CCO after that. — APL
Scoop
23-05-2025
- Business
- Scoop
Large Majority Of Gisborne Residents Want Local Control Of Water Services
Article – Zita Campbell – Local Democracy Reporter The favoured model could result in households facing an average rate increase of $100 per year. An overwhelming 90 percent of Gisborne submitters are in favour of keeping the region's water services in council hands, with ring-fenced funding and targeted rates. The favoured model could result in households connected to water services facing an average rate increase of $100 per year, while unconnected properties may have an equivalent decrease, according to council estimates. During a meeting on Wednesday, Gisborne District councillors voted to approve the modified in-house delivery model for its future water services delivery plan. Councils must submit their water plans to the Government by September 2025 under the Local Water Done Well reforms. Previous Mayor Meng Foon was among those who submitted, writing in his submission, 'water is a public good' and it should stay in public hands to prevent exploitation. 'CCO and private businesses are there for profit, as they are responsible for making a profit,' Foon said. Consultation ran from 1 April to 1 May this year, with 204 submissions received. Just one in 10 submitters supported establishing a council-controlled organisation (CCO), governed independently of the council, with water services funded through user charges and external financing. Under the CCO model, stormwater charges would remain with the council because of its connection with other services like roads and parks. This option would involve higher set-up costs and debt in the short term, but would have more borrowing capacity for upgrades. At the hearings, Foon spoke on his submission, supporting the council's recommended option to retain water services under council control. 'Your mana in ensuring that you control and have direction of our waters is utmost. 'Even though it's a CCO, your private organisation cannot borrow money as cheaply as the council.' However, Maraetaha Incorporated, a Māori land entity of Ngāi Tāmanuhiri shareholders, wanted the CCO option to enable an independent governance structure that could accommodate 'formal Māori representation and co-governance'. Trustee Beth Tupara-Katene said the Maraetaha lands were taken under the Public Works Act to develop the region's water infrastructure, including three supply dams. 'These sites now form a critical part of the city's municipal water supply, yet our shareholders and whānau have long been excluded from the decision-making, governance and benefit streams associated with that infrastructure,' Tupara-Katene told the hearings. She said the Waitangi Tribunal and Supreme Court have affirmed that Māori hold customary rights to water, which are protected under Te Tiriti o Waitangi. Local Water Done Well intends to make services more efficient, locally accountable and future-proofed. 'From our perspective, this can only be achieved if the model is built on the right foundations, recognising Treaty obligations, Māori property rights and our deep and enduring connection to our water,' Tupara-Katene said. Submitters opting to maintain council control emphasised the value of local control (60 mentions), trust in council governance (44) and concern over affordability (62), according to the council's meeting report. '[The CCO option] was commonly associated with increased bureaucracy, reduced community voice, and a risk of future privatisation.' 'Our preferred option avoids the high setup and transition costs associated with CCO, resulting in the lowest short-term impact on rates,' the document reads. The council could also choose to shift approaches later on if they choose to, by exploring shared service arrangements with other councils or a transition to a CCO. Tupara-Katene said if the in-house model is selected, iwi must be formal partners in decision-making alongside the council. 'One of the highest levels of participation in co-governance is the wastewater committee … and that has come through a consent condition,' she said as an example. There needs to be a formal decision-making group that can make those decisions alongside the council, she said. During deliberations, councillor Aubrey Ria said if an independent committee was set up to include mana whenua, it should reflect the Mangapoike dam, the Maraetaha community, Ngāi Tāmanuhiri Iwi and Waipaoa mana whenua, as water is drawn from the Waipaoa river. She also noted it could be like the Tairāwhiti Resource Management Plan committee, which had two technical specialists who gave 'really sound technical advice'. 'A make-up of another community board within the council to help guide, shape and mould the governance in that space, I think, would be really beneficial,' Ria said. The council signalled all water service costs will transition to a fully ring-fenced funding structure, from July 1, 2027, as required under the Local Water Done Well legislation. Borrowing under the in-house model still provides 'stable financial headroom' within the council's Local Government Funding Agency cap of 280 percent of operating revenue, according to the report. Under the ring-fenced housing structure, 'households connected to water services are expected to see an average rate increase of $100 per year, while unconnected properties may see an equivalent decrease.' The council will need to decide on introducing water metering, which had a 'mixed' reception during submissions, according to the council report. If approved, the new water service model will take effect on 1 July, 2027.
Scoop
23-05-2025
- Business
- Scoop
Large Majority Of Gisborne Residents Want Local Control Of Water Services
An overwhelming 90 percent of Gisborne submitters are in favour of keeping the region's water services in council hands, with ring-fenced funding and targeted rates. The favoured model could result in households connected to water services facing an average rate increase of $100 per year, while unconnected properties may have an equivalent decrease, according to council estimates. During a meeting on Wednesday, Gisborne District councillors voted to approve the modified in-house delivery model for its future water services delivery plan. Councils must submit their water plans to the Government by September 2025 under the Local Water Done Well reforms. Previous Mayor Meng Foon was among those who submitted, writing in his submission, "water is a public good" and it should stay in public hands to prevent exploitation. "CCO and private businesses are there for profit, as they are responsible for making a profit," Foon said. Consultation ran from 1 April to 1 May this year, with 204 submissions received. Just one in 10 submitters supported establishing a council-controlled organisation (CCO), governed independently of the council, with water services funded through user charges and external financing. Under the CCO model, stormwater charges would remain with the council because of its connection with other services like roads and parks. This option would involve higher set-up costs and debt in the short term, but would have more borrowing capacity for upgrades. At the hearings, Foon spoke on his submission, supporting the council's recommended option to retain water services under council control. "Your mana in ensuring that you control and have direction of our waters is utmost. "Even though it's a CCO, your private organisation cannot borrow money as cheaply as the council." However, Maraetaha Incorporated, a Māori land entity of Ngāi Tāmanuhiri shareholders, wanted the CCO option to enable an independent governance structure that could accommodate "formal Māori representation and co-governance". Trustee Beth Tupara-Katene said the Maraetaha lands were taken under the Public Works Act to develop the region's water infrastructure, including three supply dams. "These sites now form a critical part of the city's municipal water supply, yet our shareholders and whānau have long been excluded from the decision-making, governance and benefit streams associated with that infrastructure," Tupara-Katene told the hearings. She said the Waitangi Tribunal and Supreme Court have affirmed that Māori hold customary rights to water, which are protected under Te Tiriti o Waitangi. Local Water Done Well intends to make services more efficient, locally accountable and future-proofed. "From our perspective, this can only be achieved if the model is built on the right foundations, recognising Treaty obligations, Māori property rights and our deep and enduring connection to our water," Tupara-Katene said. Submitters opting to maintain council control emphasised the value of local control (60 mentions), trust in council governance (44) and concern over affordability (62), according to the council's meeting report. "[The CCO option] was commonly associated with increased bureaucracy, reduced community voice, and a risk of future privatisation." "Our preferred option avoids the high setup and transition costs associated with CCO, resulting in the lowest short-term impact on rates," the document reads. The council could also choose to shift approaches later on if they choose to, by exploring shared service arrangements with other councils or a transition to a CCO. Tupara-Katene said if the in-house model is selected, iwi must be formal partners in decision-making alongside the council. "One of the highest levels of participation in co-governance is the wastewater committee ... and that has come through a consent condition," she said as an example. There needs to be a formal decision-making group that can make those decisions alongside the council, she said. During deliberations, councillor Aubrey Ria said if an independent committee was set up to include mana whenua, it should reflect the Mangapoike dam, the Maraetaha community, Ngāi Tāmanuhiri Iwi and Waipaoa mana whenua, as water is drawn from the Waipaoa river. She also noted it could be like the Tairāwhiti Resource Management Plan committee, which had two technical specialists who gave "really sound technical advice". "A make-up of another community board within the council to help guide, shape and mould the governance in that space, I think, would be really beneficial," Ria said. The council signalled all water service costs will transition to a fully ring-fenced funding structure, from July 1, 2027, as required under the Local Water Done Well legislation. Borrowing under the in-house model still provides "stable financial headroom" within the council's Local Government Funding Agency cap of 280 percent of operating revenue, according to the report. Under the ring-fenced housing structure, "households connected to water services are expected to see an average rate increase of $100 per year, while unconnected properties may see an equivalent decrease." The council will need to decide on introducing water metering, which had a "mixed" reception during submissions, according to the council report. If approved, the new water service model will take effect on 1 July, 2027.
Otago Daily Times
17-05-2025
- Business
- Otago Daily Times
Community input sought over water
Waitaki District Council will consult the community on becoming part of a four-way "coalition of the willing" behind a multi-district water services entity. Following last week's extraordinary council meeting, Waitaki residents will now get the chance to tell the council which of four possible water service models they prefer. The approved consultation document outlines four options for managing Waitaki's water services. Option 1: The Southern Water group — a joint Council-Controlled Organisation (CCO) with Clutha, Central Otago and Gore districts (the preferred option). Option 2: A standalone Waitaki CCO. Option 3: An in-house business unit. Option 4: The South Canterbury group — a joint CCO with Mackenzie, Timaru and Waimate districts. Councillors agreed a motion put forward by Cr Tim Blackler that consultation documentation include a ranking system to rank those options in order of individual preference. The ability of option 4 to be viable was questioned in the meeting, after Waimate District Council confirmed its preferred option was to establish an in-house service. District Mayor Gary Kircher agreed. "I think this reflects the complexity of the discussions we've been having all the way through. Certainly, my experience has been some parties haven't been as engaged or willing to engage as others. "There's only so many times you can ask someone to dance with you and so many rejections you get before you think that maybe there's not a dance there for you at all. I have had good discussions with Mackenzie and Timaru and you know, they are showing more of a willingness than Waimate has, which is commendable. "Equally, the southern group has been very open right through ... They have been literally the coalition of the willing." No matter what option is chosen, water will no longer be part of rates bills. Instead, it will be billed to residents, similar to power bills. All options are more expensive than the existing charges included in rates bills. Mr Kircher said he was confident the council's preferred option was the best for ratepayers. "I keep reiterating that with our community, this is the decision we are making with the best interests of our community at heart. "We are not giving away our water. "We're not packing that, all the pipes, in a box and shipping them off to some unknown buyer. "We're not putting them on TradeMe. "This is very simply a case of trying to do the best thing for our ratepayers around how water and expenses are going to be governed. What we're trying to do is make sure that they are going up by the least amount and that's certainly been my goal all the way through this, to make sure that people get good water services, delivered well and at the most affordable price — which, in all fairness, it won't be affordable for everyone ... but that's the cost of what has to be done." Councillors around the table and joining online were supportive of the meeting's outcome but also expressed frustration with the complex process being imposed by the government. The council's longest-serving councillor, Jim Hopkins, said he supported the consultation document but with reservations. "In this instance, we're not actually consulting with the community. We're consulting, in fact, with invisible examiners, people in Wellington who have the capacity to say, 'no, no, change that, we don't like that'." Cr John McCone urged people to get involved in the consultation process. "This is very important. On the legislation side, it will be determined partly by the submission put in [to the government]. So, don't sit on your hands." Cr Jim Thomson summed up the magnitude of what the council was consulting on. "It's not the water that comes out of the tap that we drink or we wash with, it's also the cost involved as to where that water goes once we've used it or processed it. The issue is actually bigger than Ben-Hur." The council must submit a water services delivery plan to the Department of Internal Affairs by September 3. Public consultation meetings will be held in Otematata, Palmerston and Oamaru. There will also be a Waitaki-specific Facebook Live session and updates across print, radio and social media. The consultation runs to June 6. A joint statement from Central Otago District Mayor Tamah Alley, who chairs Southern Water Done Well, Waitaki District Mayor Gary Kircher, Gore District Mayor Ben Bell and Clutha District Mayor Bryan Cadogan said they were committed to working together to deliver a solution that met evolving community expectations and Local Water Done Well's new economic, environmental and quality standards. "We know that prudent and efficient investment and affordability are key concerns for our communities. "However, the new rules and regulations under Local Water Done Well legislation will increase the costs of water services delivery in the future, no matter which model we choose. "One thing that has stood out is that the more people who share the cost of water services, the more affordable they become for everyone. "This issue [the future of water services delivery] is bigger than any one council." Local Government Minister Simon Watts told the Oamaru Mail he was pleased with the progress to date, more than half of the councils having gone out for consultation. "I'm encouraged that a majority of councils that have gone out for consultation to date have identified a multi-council CCO as their preferred option. This demonstrates their understanding of how this model can support financially sustainable and affordable water services for their communities." As of May 12, 60 councils have commenced consultation on their water services delivery plans. Of those councils: 40 have indicated a preference for a multi-council CCO. 20 have indicated a preference for a single-council model — either enhanced status quo [in-house] or a single council CCO. And just like Network Waitaki, the water company wouldn't be out to make a profit, it would exist solely to provide a reliable service to the people it serves at the most affordable price possible. Both organisations also have large infrastructure responsibilities. Network Waitaki has invested in ensuring our district has a modern and resilient electricity network. But it has its own challenges coming, requiring even more investment. Likewise, the new water company will need to invest in renewing and upgrading the infrastructure that treats and delivers our water and manages our wastewater and stormwater. This is not optional. Tightening water regulations mean we need to lift performance, and that takes investment. There are some myths floating around that need dispelling. For example, some people worry that Waitaki ratepayers might end up subsidising water upgrades in other districts. That won't be the case. The CCO will be structured so each council pays for the water services in their own district, charges will be separate and fair. There's also concern that having a regional company will mean delays when something goes wrong. But like any good utility company, the new provider will have teams based around the region to make sure they can respond quickly and meet strict performance targets. There will be more accountability for service levels than we have now. Finally, while we might feel like water services are 'more local' when they're inside the council, the reality is that central government regulation is increasing and the degree of local control is already starting to shift. Setting up a dedicated, locally owned company allows us to stay ahead of the changes and ensure we keep control where it matters most, in our communities. So here's the question I will leave you with, most people would agree that Network Waitaki is doing a good job of managing our electricity network. If that model works for power, why wouldn't it work for water? Please take the time to submit as part of our consultation. Information can be found on the council's website or in our libraries.
