Options in the Statement of Proposal

20 May, 2020

Option One

To ensure your and your whanau’s prosperity, health, safety and our environment, we need to address the system-wide challenges facing our wastewater network. To achieve this we are proposing to provide wastewater services differently…

After an extensive review of how our wastewater services can best be delivered and safeguarded into the future, Rotorua Lakes Council is proposing that we enter into a single contract with a consortium named Trility for the provision of wastewater services across our District.

The single contract provides a win-win for our communities, as it addresses many of the known service challenges, whilst also maintaining and retaining full Council ownership of the assets, full Council control of funding for the service and decision making to ensure the highest level of service to our communities.

In order to achieve stable, reliable and safe operation of the network we need to have one contract. Trility has the experience, knowledge, depth and breadth of skills to apply more reliable and systematic risk management. This proposal transfers the majority of risk over to Trility to manage, including all of operating costs, the financial risk associated with not meeting relevant regulations and legislative requirements and all of the network performance risk, maintenance and renewals planning.

This contract is ultimately buying us a risk management plan and giving certainty to you as a ratepayer that in the face of a shock event you will not have to risk paying the cost.

Option Two

To continue to deliver the wastewater services based on the current practice and retain the full and ever-increasing risk associated with this service delivery method.

Currently, our wastewater services are delivered through a number of different external contracts, which are managed in-house.

In order to satisfy our responsibilities to our communities, Option Two is not just 'business as usual' and requires an optimisation of the current delivery method.

Under Option Two, the cost of operating and maintaining the service is uncapped, meaning if there was a shock-event and/or network performance failure the potentially significant cost burden would fall on ratepayers.

Option Three

To do nothing and wait for the Central Government to intervene.

There is an option to do nothing at this point. The Central Government are working on guidelines and further compliance and monitoring rules for councils in light of the many issues facing the water space in New Zealand. However, this option is not being considered as it does not set out to address any of the issues that face the service right at this time. This option does not demonstrate good asset management or stewardship by Council as the leaders of the District and could have significant impacts including, catastrophic failure of the network resulting in major disruption to the service.


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