Central Otago District Council (CODC) at its meeting on Wednesday (August 30) discussed the region’s future supply of water and whether its current charging methods were adequate.

A request had been received from the developer of Shannon Farm at Ripponvale for an on-demand water supply for 170 large residential lots which range from 1,500 to 6,000 sqm. 

That triggered conversations among staff as to how water could be provided to the consent holder in a manner that satisfied the need to meet future demand for treated water and to also provide irrigation to the properties.

In her report to council, CODC Three Waters director Julie Muir said the developer had then proposed separate reticulated irrigation supply for the properties, to avoid having a water restrictor and tank on each property. 

“As part of the consideration of the developer’s request, staff considered the possibility that residents would continue to use the potable supply for irrigation rather than the separate irrigation supply.

“The current volumetric charge is low, and may not achieve the supply management outcomes desired for some property owners.”

With volumetric charging, people were charged for what they used, and because the volumetric charge was so low, this might not achieve the demand management outcomes desired for some high-demand properties, or those who were able to pay. 

Thus, staff were asking for direction to do further analysis to support consultation on changing the proportion of the uniform annual charge and the volumetric charges for water use in the 2024 Long-term Plan. 

Cr Neil Gillespie said a review was appropriate “20 years out, to make sure it is still fit for purpose”.

It was important to make sure that those who were using the most water were not being subsidised by those using little, he said. Sections were larger at the time the current charging system was put in place, and council needed to ensure that those with larger sections did not end up paying more than their fair share.

“It’s about paying your fair share, for what you are using,” Neil said.

Cr Tamah Alley asked whether a hybrid model was required to encourage people to reduce consumption.

“I’d like to see all options going forward into the future rather than just what is fit for purpose right now.”

The council directed staff to undertake further analysis to identify the options for implementing changes and agreed, subject to further work, that volumetric charging be used as a demand management tool for water use.

Those options would then be referred to council for further consideration, and then included in the Long-term Plan, and public consultation would follow.

Council appoints engineer to Three Waters Contract

CODC appointed an engineer to contract for the Three Waters Operations and Maintenance Contract 2022.

CODC Three Waters director Julie Muir told the council she had been taking a more direct operational management role on the contract since May 2023, following the resignation of the Three Waters manager

It was considered best practice to appoint an external engineer to provide decisions independent of the council.

“I can’t have that impartial role that the engineer to contract needs to have,” she said. 

She recommended Neil Jorgensen for the role, who is a chartered professional engineer who works for consultants Rationale Ltd and has extensive relevant experience. 

Council agreed with her recommendation and voted to appoint Neil to the role.