Waipā and Ōtorohanga councils to work together on water improvements

Waipā District Councillors have voted in favour of entering into a collaborative arrangement with Ōtorohanga District Council to save costs on future water works that will benefit both districts.

The decision was made at Tuesday’s Service Delivery Committee meeting to enter into a Joint Project Agreement (JPA) with Ōtorohanga District Council for the next three financial years.

Waipā District Council’s Group Manager – Service Delivery Dawn Inglis said the agreement will enable better infrastructure delivery in a challenging market.

“This collaboration will result in cost-savings through financial efficiencies and sharing of resources and materials, increased levels of service and customer satisfaction and better delivery of water services.”

“Both councils have a commitment to employ and train local people, so this will not only be an improvement in creating a larger package of work which is more attractive to the market, but also a chance to positively influence the local job market.”

Earlier this year, Waipā District Council was invited by Ōtorohanga District Council to explore opportunities to collaborate on future water-related infrastructure builds that benefit each ratepayer base.

Both councils have significant work programmes planned over the next three years to improve water, stormwater and wastewater networks. Waipā District’s aging infrastructure watermain renewals are expected to cost in the vicinity of $10m over the next three years, and Ōtorohanga District’s watermain renewal budgets are approximately $1.7M over the three year period.

The basis of the agreement is that the councils will work together to jointly obtain and manage the watermain renewals contract across the two districts.

Project Delivery Manager Peter Thomson said the agreement creates an opportunity for collaboration, achieving greater value for money and financial efficiencies, and has been carefully prepared to protect the financial interests of each council in the joint arrangement.

“The relationship will help us provide greater resilience in infrastructure delivery by sharing resources. The large workload will be better managed over the next three financial years by allowing a contractor to manage the delivery in line with their resourcing availability.”

Under the agreement, the councils agree to cost sharing and cost allocation on a fair basis of management roles and charge out rates, where services are carried out for respective Council works.

The councils will now work together to finalise a Watermain Renewal Contract and procurement documents for tendering in late 2021, with a view to start in early 2022. The contract period will continue through to mid-2024.

This period coincides with the Government’s notified transition period leading up to the mandatory establishment of new Water Service Entities, as part of the Three Water Reforms by 1 July 2024. For more information about the Three Waters Reform, head to waipadc.govt.nz/three-waters-reform or www.dia.govt.nz/Three-waters-review.