Latest news with #Wairarapa-Tararua
Scoop
03-06-2025
- Business
- Scoop
South Wairarapa Plans To Spend Almost $30m On Water Infrastructure
South Wairarapa District Council is set to spend almost $30 million on capital water infrastructure projects in the next two years, with all to be delivered in-house until a new water services entity is established. Significant projects on the horizon for the council included upgrades to wastewater treatment plants in Greytown, Martinborough, and Featherston, pipe renewals, and capacity upgrades to enable growth. The council's Management Services Agreement with Wellington Water Limited was set to expire on June 30 but the council has voted to keep operational expenditure with the water management entity for another year and do its capital expenditure programme in-house. This vote was done in public exclusion and the report has recently been released. The report said the council would need to build a team to deliver South Wairarapa's full capital expenditure programme for at least the next two years, however, the proposed Wairarapa-Tararua entity could start as early as July 1, 2026. Over the first two years of the council's 2025-34 Long-Term Plan, its capital investment programme totalled $10.85m and $18.31m respectively, the report said. 'The expected benefits of us managing capital expenditure in-house are anticipated to be more cost control, cost efficiency, on-time delivery, local contractor delivery, and optimisation of the programme leading into the new entity in which our forward investment programme will be a factor for negotiations,' the report to council said. 'The risks are that there might be some delay while we source resourcing, and this may impact on relationships with the community and the regulator, but this should be able to be managed with proactive and comprehensive communications.' The report said the relationship between the council and Wellington Water had been 'fraught' and councillors had voted in public-exclusion in December to exit the relationship with Wellington Water on June 30, 2025. Councillors had instructed staff to explore options for interim arrangements, citing dissatisfaction with Wellington Water's performance. The report said the Local Water Done Well process had provided 'additional impetus to consider an early exit from Wellington Water by SWDC'. 'Earlier exit carries the potential for upside in terms of both improved levels of service in the short to medium term, and for being better prepared for the transition into the new entity, if well executed,' the report said. 'There are also risks to an earlier exit including being able to procure sufficient resources to replace Wellington Water and the distraction from the Local Water Done Well transition work that managing an early transition could cause.' In January, council chief executive Janice Smith and Deputy Mayor and Wellington Water Committee representative Melissa Sadler-Futter met with Wellington Water Board chair Nick Leggett and chief executive Pat Dougherty and gave them informal notice that the council intended to exit the relationship on June 30 but that this could be extended 'depending on practicality'. The report said council staff then requested information to assist with this transition but Wellington Water staff had been 'disappointingly' slow to respond, 'in part because our requests distract Wellington Water resources from other matters such as planning for the new Wellington Regional entity'. Initially, council staff were asked to look at a full-service external provider option taking both operational and capital expenditure away from Wellington Water but councillors voted at the end of April to take back capital projects only. At a Wellington Water Committee meeting on Friday, Dougherty said Wellington Water was working to transfer all capital projects back to the council by July 1 and was 'starting to get systems in place to look at how we transfer responsibilities for operations and maintenance by July 1, 2026'.
Scoop
22-05-2025
- Business
- Scoop
Decision-Day For Masterton's Water
Masterton councillors will decide on Wednesday whether to progress a Wairarapa-Tararua water service entity, or go it alone. The council was set to deliberate on submissions at 2pm on Wednesday and decide between the two options. If the council voted to progress work on the Wairarapa-Tararua water services delivery model, it would enter into a commitment agreement with the participating councils and develop the Water Services Delivery Plan and foundation principles and documents to be carried forward into the plan. Foundation principles would include: non-standardisation of pricing and debt; share allocation; and decision-making arrangements. If council chose this option, there would be two further opportunities to exit the arrangement and to submit a Water Services Delivery Plan with a Masterton-only water services delivery model to the Department of Internal Affairs. The Wairarapa-Tararua option was recommended by council staff because it 'enables council to work through the uncertainties and concerns of the Wairarapa-Tararua model while still providing council with two opportunities to exit the arrangement'. Alternatively, the council could vote to not progress a Wairarapa Tararua water services delivery model and only progress a Masterton-only water services delivery model. Analysis of the 139 submissions made to Masterton District Council showed the majority (60%) were in favour of the Wairarapa-Tararua proposal. Key themes in the submissions from those who supported the proposal were economies of scale, long-term sustainability, support for increased borrowing capacity. Of those who did not support the proposal, key themes were concerns about price standardisation, affordability, and the desire to have more localised control over water assets and services. A report to council said that while protections against price standardisation could be put in place, standardisation in the future could not be guaranteed. A memo from legal firm Morrison Low was also included in the agenda pack for Wednesday's meeting. It provided advice and guidance to Masterton District Council on the council's desire to 'on establishment, protect Masterton from price standardisation' and 'ensure that there are sufficient protections over key decisions or changes to foundational documents over the longer term that protect Masterton from price standardisation to the extent that is desired'. It said there was 'a path forward' that would provide council with assurance that price differentiation was possible; shareholding could be determined on a basis that reflected Masterton's position relative to the region; and decision making could be structured in a way that promoted regional focus and recognised Masterton's position relative to the region at the current time. It also said protections could be enshrined in the series of foundational documents required to establish and then control and govern the council-controlled organisation. It recommended voting mechanism provisions in both the shareholders agreement and constitution which ensured no single council had positive or negative control but which required 75% of the shareholders to agree to any changes to foundational documents. 'A super majority or similar threshold requires not just Masterton District Council but other councils to agree as well, giving a perception and reality that is more consistent with consensus decision making while preserving Masterton District Council's ability to protect the interests of its ratepayers," the memo said. It recommended commencing with local pricing but having a review point for standardisation. This could be a point in time, such as five years, or an 'identified cost differential', for example, when local prices were within 10% of each other. South Wairarapa District Council has already voted to pursue the Wairarapa-Tararua option. Carterton District Council were set to meet at 9am Thursday to deliberate on submissions and decide a path forward. Tararua District Council would meet on May 28 to deliberate on submissions and would decide on the future of water management at an extraordinary meeting on June 11. -LDR is local body journalism co-funded by RNZ and NZ On Air.
Scoop
17-05-2025
- Business
- Scoop
Doubts Remain Over Proposed Joint Water Entity
'If in doubt, opt out now.' This was the advice former Masterton mayor Lyn Patterson gave councillors at this week's Local Water Done Well hearing, held at Waiata House. Although 58% of Masterton submissions were in favour of a Wairarapa-Tararua water services model, some stipulated their support was conditional on there being no standardisation of prices between districts. About 39% supported a Masterton-only enhanced status quo approach, and about 3% did not support either option. Patterson, who was one of several submitters who presented to council on Wednesday, said the council should not have limited people's choices to only two options and was concerned there was no guarantee of non-standardisation once a Wairarapa-Tararua water entity was established. 'Given you have to act in the best interests of present and future Masterton generations, you really don't have a choice,' she said. 'Please err on the side of caution as there is too much at stake. 'Be bold, be courageous, and if in doubt opt out now and support standalone, unless there is a legal watertight guarantee to no standardisation.' Amber Craig, who submitted on behalf of Rangitāne o Wairarapa Incorporated, supported the Masterton-only option and said joining with other councils watered down the voice of whānau, hāpu, marae, and iwi. Meanwhile, Rangitāne Tū Mai Rā Trust, the post-settlement governance entity for Rangitāne o Wairarapa and Rangitāne o Tamaki nui-ā-Rua, made a submission supporting the Wairarapa-Tararua option. Masterton Ratepayers and Residents Association president Lyn Riley said there was too much uncertainty in choosing the Wairarapa-Tararua option. The group's biggest concerns were financial fairness, lack of detail, and loss of local control, she said. There were 'way too many unanswered questions' about governance, cost-sharing, ringfencing, shareholder agreements, and asset control. 'The devil is always in the detail, or in this case, the lack of detail,' Riley said. Submitter Chris Blunden supported the Wairarapa-Tararua option and said pooling together resources across the districts into one organisation would increase resilience and safeguard resources and staff expertise. Erica Jar from Sustainable Wairarapa said her organisation supported the Wairarapa-Tararua model in principle but had concerns about the level of uncertainty that came with the option. Submitter Robbie Hullena supported the Masterton-only option and said standardisation would be a constant threat for Masterton shareholders. Because of this, and other unknowns, he said a 'safe vote' would be for the Masterton-only option. Submitter Peter Debney said the Wairarapa-Tararua option was the 'only affordable option' but also said he wanted to believe standardisation was 'not a possibility'. Submitter Jamie Falloon said the biggest risk in the Wairarapa-Tararua option was standardisation and that the process that had been prescribed by the government and followed by councils was 'distinctly average'. He was uncomfortable with the council agreeing on an idea, binding ratepayers to it, and then negotiating to 'see what happens'. Masterton councillors would deliberate on all submissions on May 21. The proposal Masterton District Council consulted on was the Wairarapa-Tararua option. Its consultation document said each council would have different investment requirements and costs of service and that there was no requirement for water charges to be standardised across the districts. The proposal's projected costs were based on water charges not being standardised and were an average of $2305 per Masterton connection by Year 10. The council also included information on pricing over time in its consultation document to show what a standardised cost could look like 'compared to the cost under the Proposal without standardised costs'. This standardised price was $3620 per connection by Year 10. – LDR is local body journalism co-funded by RNZ and NZ On Air.
Scoop
24-04-2025
- Politics
- Scoop
Landslide Approval Of Wairarapa Water Model
Article – Emily Ireland – Local Democracy Reporter The council asked for feedback on two options: a Wairarapa-Tararua asset-owning council-controlled organisation (CCO), or its existing approach — a non-asset owning CCO similar in structure and ownership to Wellington Water. Submitters to South Wairarapa's Local Water Done Well consultation have been largely in favour of joining forces with Carterton, Masterton, and Tararua to deliver water services. But some presenters at Wednesday's hearing were critical of the council only consulting on one 'viable' option. The council asked for feedback on two options: a Wairarapa-Tararua asset-owning council-controlled organisation (CCO), or its existing approach — a non-asset owning CCO similar in structure and ownership to Wellington Water. Of 134 written submissions, about 87% were in favour of the Wairarapa-Tararua model. Submitter Leah Hawkins said the Wairarapa-Tararua option was 'not just being presented as the preferred choice, but is the only viable choice'. She was concerned there was no backup plan if the model did not succeed. 'South Wairarapa should not be forced to adopt a model just because there are no other options on the table. 'It's policy by default and we must try to demand better.' The council's consultation document said the status quo approach would present significant financial challenges in delivering its planned water infrastructure programme. It said from around 2030 onwards, the council would no longer have the capacity to fund any further capital works through debt, 'severely limiting our ability to maintain and improve our water infrastructure'. Submitter Dean Di Bona said the government had delivered 'an absolute lemon of legislation that we have to work with'. He said the council's status quo approach had resulted in an adverse audit opinion in the council's draft long-term plan, which left only the Wairarapa-Tararua option as 'a contender'. 'This starkness has left us in the unenviable position where tunnel vision can take over and red flags are missed,' Di Bona said. He asked what would happen if one of the four councils did not join the Wairarapa-Tararua model, and expressed concerns about attracting expertise and resources when other CCOs would be getting set up at the same time. Submitter Adrienne Young-Cooper, who was previously the chair of the Wairarapa Economic Development Strategy, supported the Wairarapa-Tararua model and believed it would 'create an entity of sufficient scale and financial clout and expertise to be able to do a great thing for all the councils'. She hoped the proposed Wairarapa-Tararua model would attract 'great people who are prepared to come and live in Wairarapa, grow their families here, and build their careers'. Submitter Shane Atkinson was also in favour of the Wairarapa-Tararua option but believed there would be no buy-in from other councils unless water charges were ringfenced by district. 'I can imagine the howling and snivelling from Masterton should there be any suggestion that they pay for or have higher costs as a result of taking on board some of the smaller entities,' he said. Submitter Bill Armstrong also supported the asset owning CCO option with neighbouring councils, but he wasn't supportive of Tararua being included. He said the inclusion of Tararua significantly increased the geographical area of the proposed CCO and was concerned it would increase costs and stretch resources thin. Submitter Sue Fox asked the council to pursue a status quo model with Wellington councils. 'Instead of the uncertainties and costs attached to forming a new CCO, let's stick with the devil we know,' she said. 'Having seen the attempts to get the Wairarapa councils to work together over the past three or four terms, I just cannot have confidence that the CCO body will be set up in a timely way and be ready to start operating within the proposed budget.' The council would deliberate on submissions on May 8.
Scoop
24-04-2025
- Business
- Scoop
Landslide Approval Of Wairarapa Water Model
Submitters to South Wairarapa's Local Water Done Well consultation have been largely in favour of joining forces with Carterton, Masterton, and Tararua to deliver water services. But some presenters at Wednesday's hearing were critical of the council only consulting on one 'viable' option. The council asked for feedback on two options: a Wairarapa-Tararua asset-owning council-controlled organisation (CCO), or its existing approach -- a non-asset owning CCO similar in structure and ownership to Wellington Water. Of 134 written submissions, about 87% were in favour of the Wairarapa-Tararua model. Submitter Leah Hawkins said the Wairarapa-Tararua option was 'not just being presented as the preferred choice, but is the only viable choice'. She was concerned there was no backup plan if the model did not succeed. 'South Wairarapa should not be forced to adopt a model just because there are no other options on the table. 'It's policy by default and we must try to demand better.' The council's consultation document said the status quo approach would present significant financial challenges in delivering its planned water infrastructure programme. It said from around 2030 onwards, the council would no longer have the capacity to fund any further capital works through debt, 'severely limiting our ability to maintain and improve our water infrastructure'. Submitter Dean Di Bona said the government had delivered 'an absolute lemon of legislation that we have to work with'. He said the council's status quo approach had resulted in an adverse audit opinion in the council's draft long-term plan, which left only the Wairarapa-Tararua option as 'a contender'. 'This starkness has left us in the unenviable position where tunnel vision can take over and red flags are missed,' Di Bona said. He asked what would happen if one of the four councils did not join the Wairarapa-Tararua model, and expressed concerns about attracting expertise and resources when other CCOs would be getting set up at the same time. Submitter Adrienne Young-Cooper, who was previously the chair of the Wairarapa Economic Development Strategy, supported the Wairarapa-Tararua model and believed it would 'create an entity of sufficient scale and financial clout and expertise to be able to do a great thing for all the councils'. She hoped the proposed Wairarapa-Tararua model would attract 'great people who are prepared to come and live in Wairarapa, grow their families here, and build their careers'. Submitter Shane Atkinson was also in favour of the Wairarapa-Tararua option but believed there would be no buy-in from other councils unless water charges were ringfenced by district. 'I can imagine the howling and snivelling from Masterton should there be any suggestion that they pay for or have higher costs as a result of taking on board some of the smaller entities,' he said. Submitter Bill Armstrong also supported the asset owning CCO option with neighbouring councils, but he wasn't supportive of Tararua being included. He said the inclusion of Tararua significantly increased the geographical area of the proposed CCO and was concerned it would increase costs and stretch resources thin. Submitter Sue Fox asked the council to pursue a status quo model with Wellington councils. 'Instead of the uncertainties and costs attached to forming a new CCO, let's stick with the devil we know,' she said. 'Having seen the attempts to get the Wairarapa councils to work together over the past three or four terms, I just cannot have confidence that the CCO body will be set up in a timely way and be ready to start operating within the proposed budget.' The council would deliberate on submissions on May 8.
