We are proposing to deliver our wastewater services differently...

6 months ago
CLOSED: Thanks for all the discussion. These threads will be provided to Elected Members for deliberation.

The management and operation of Council’s wastewater network infrastructure is becoming increasingly complex.  Demands and risks on wastewater networks is a significant concern for all of New Zealand and nationally the management and delivery of wastewater services is under the microscope. 

Council are considering a proposal for the long term contracting of our wastewater services that offers to gain certainty in risk management, future and ongoing costs, reliability and performance management.

This is the place to discuss, find out more the background and reasoning of contracting out.

  • Admin Commented Emma 7 months ago
    Hey, there's not much information in the paragraph above, where can I find some more details regarding the wastewater proposal?
  • Admin Commented Lets talk 7 months ago
    Thanks for the question Emma. There is more info on the website here: https://letstalk.rotorualakescouncil.nz/annual-plan-2019-2020?tool=news_feed#tool_tab Or take a look at the consultation document on page 8: https://indd.adobe.com/view/428a43b0-287c-47c0-98e2-4fd1d50cc096 Thanks, The Let's Talk Team
  • renee 7 months ago
    Kia ora. I have two questions. I might have more questions depending on your answer. 1) Which companies and other groups make up the "consortia" that council has agreed to support in principle to design-build-operate-maintain-renew the council's wastewater system? 2) What budget has the council set aside for this (eg, how much is this contract going to be worth)?
    Hide reply (1)
    • Admin Commented Lets talk 7 months ago
      Renee, Great questions!In answer:1) The consortium that has been successful to date through the ‘Expressions of Interest’ and ‘Request for tender’ process is Trility. Included with Trility are: Fulton Hogan and Stantec. The core parties in this consortium are highly experienced in waste water operations and management and related environmental solutions. RLC asked all tender respondents to outline how they would work with Te Arawa, with regards to governance, strategy, operations, environmental management and investment opportunities. The Trility consortium have proposed an MOU between the core parties and a Te Arawa Collective, which would provide for Te Arawa decision-making meaningful input, enhance industry capabilities, and improve environmental, social and cultural outcomes. Council is not yet informed of which entities may be considering the proposed Te Arawa collective vehicle. Council will always maintain service control through the contract provisions, establishing levels of service and levying rates.2) With regards to the budget. Council already includes in its long term plan (2018-2028) and its 30 Year Infrastructure Strategy (2018-2048) financial allocations to operate and manage the waste water services. These financial allocations are readily accessible through the Long term Plan information. The proposed contract is targeted to fit inside these allocations. The full detail financial due diligence has not been completed yet. What we are looking for through this Annual Plan engagement is to gauge ‘support in principle’ from the community to the proposed model (i.e. A 25yr contract for service delivery) so we can continue to negotiate in good faith. Based upon the completion of the financial due diligence and Annual Plan feedback, Council will undertake further consultation based upon the potential option to contract out the service via a 25 year contract and show comparisons to any alternative options that are viable. The design and build parts of this contract would only come into effect if resource consent is granted for the WWTP upgrade. Hence, the contract could be awarded irrespective of a resource consent.Thanks!
  • Easter1 7 months ago
    I feel this is a council's service. Contracting out usually costs more. Keep in house and stick to budget.
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  • robert okell 7 months ago
    Nothing is certain apart from death. Having a contract will not make the function any cheaper. Contractors exist to make profit. I see only one applicant for the waste water treatment. Either its a dead loss or the applicant will squeeze the contract after taking it on for more funds. If council is admitting it has no expertise in the matter why are staff employed? What happened to that elixir proposed by scion? the CEo cannot hide behind a contract for everything and then pretend its some one elses fault. This is entirely the wrong time to try and bind future elected members to another mad scheme. I oppose the proposal.
    Hide reply (1)
    • Admin Commented Rob 7 months ago
      Thanks for your thoughts. In answer to your questions: Council does employ high quality engineering discipline staff with expertise in managing waste water services contracts. However, by consolidating the current practice of initiating a large number of contracts into a single comprehensive package with full end to end contractor responsibility to meet operational and statutory performance targets will give Rotorua access to a wider pool of more sophisticated technical expertise and technical service operations staff that are current in international best practise.You ask “What happened to that elixir proposed by scion?” – if you a referring to the Terax Partnership, information is available here: https://www.rotorualakescouncil.nz/our-council/news/Pages/default.aspx?newsItem=7976
  • Roundhill 7 months ago
    Could you please confirm who has tendered for this contract, as I am reading below that there is only one Trility. This can't be good for the so called budget. Also it seems that there is no guarantee on the final cost of the project, is this going to be another blow out? Completely oppose the project and the increase it will have on my rates, considering I to live rural and have no rubbish collection, waste water services and poor roads. This money could be better spent!
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    • Admin Commented Rob 7 months ago
      Thanks for the adding to the discussion. During the ‘Expressions of Interest’ and ‘Request for tender’ process, Council went out to the waste water services industry. Through that process an initial interest from some 36 companies was received. Subsequent formal expressions of interest were submitted by 6 consortia. These were evaluated and shortlisted to 3 then through a more detailed tender process identified one preferred supplier consortium comprising Trility, Fulton Hogan and Stantec. This is the consortium Council prefers to finalise a contract with.Discussion around the long term cost of the services anticipated by the contract have been targeted to fit inside the current funding allocations and with certainty over the term of the proposed contract. The full detail, financial due diligence has not been completed yet. What we are looking for through this Annual Plan engagement is to gauge ‘support in principle’ from the community to the proposed model (i.e. A 25yr contract for service delivery) so we can continue to negotiate in good faith. Based upon the completion of the financial due diligence and Annual Plan feedback, Council will undertake further consultation based upon the potential option to contract out the service via a 25 year contract and show comparisons to any alternative viable options.It would be worth noting that in your personal circumstance, as living in a rural area, a change to how Council runs its waste water services will have no impact on your rates. Services such as waste water and household rubbish collection are target rated. So only those that receive those specific services, pay for those services. For more information on rates: https://www.rotorualakescouncil.nz/our-services/property-and-rates/Rates/Pages/default.aspx