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Council
26 March 2025
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Reports
Draft Consultation Document for Local Water Done Well:
Water Services Delivery Model
Department: 3 Waters
EXECUTIVE SUMMARY
1 This
report recommends the Council considers and approves the draft Consultation Document
at Attachment A. The Consultation Document provides information on the delivery
model options for the future delivery of water services in the city.
2 Information
on the anticipated or proposed model for delivering water services must be
included in Council’s Water Services Delivery Plan (WSDP). Council is
required to adopt and submit a WSDP to the Secretary for Local Government by
3 September 2025.
3 The
Consultation Document has been prepared in accordance with the requirements of
the Local Government (Water Services Preliminary Arrangements) Act 2024
(Preliminary Act). The Consultation Document outlines and seeks the
community’s feedback on two possible water services delivery models for
Dunedin as decided by Council at its meeting on 26 February 2025:
a) In-House
delivery of three waters services (the In-House model); and
b) An asset
owning council-controlled organisation for delivery of three waters services,
with Council as the sole shareholder (the CCO model).
4 The
In-House model was determined as the Council’s preferred model. The
Consultation Document explains both models, gives reasons for the
Council’s preferred model, and provides financial and non-financial
analysis allowing comparisons between the models. The Consultation Document
asks for community feedback on their preference. Council’s preferred
model is referred to in the Consultation Document as the ‘proposal’
in accordance with the Preliminary Act.
5 Public
consultation on the water services delivery model options is expected to run in
parallel with consultation on Council’s draft 9 year plan 2025-34 (9YP)
from 31 March 2025 to 30 April 2025.
RECOMMENDATIONS
That the Council:
a) Considers and approves the
draft Consultation Document at Attachment A for public consultation.
b) Delegates the Chief
Executive the authority to make any minor editing required to the approved
Consultation Document.
BACKGROUND
6 The
Council is required under the Preliminary Act to prepare and submit a WSDP to
the Secretary for Local Government by 3 September 2025.
7 A
key content requirement of the WSDP is “the anticipated or proposed model
or arrangements for delivering water services (including whether the
territorial authority is likely to enter into a joint arrangement)”. This
requirement is referred to as the Water Services Delivery Model (WSDM) in this
report.
8 The
Council considered a report on WSDM options at its meeting on 26 February 2025
and decided on its preferred model. Council resolved as follows:
Moved (Mayor Jules Radich/Cr
Jim O'Malley):
That the
Council:
a) Decides
to consult on the following two options under the Local Government (Water
Services Preliminary Arrangements) Act 2024:
i. In-House
delivery of 3 Waters (the In-House Option); and
ii. An
asset owning CCO for 3 Waters, with Council as the sole shareholder (the CCO
Option).
b) Determines
that its Preferred Option for consultation was the In-House Option.
c) Notes
that there would be a report to Council on 18 March 2024 asking Council to consider
the water options consultation document.
Motion
carried (CNL/2025/074)
9 The
Preliminary Act prescribes the process that Council must use for consultation
on the WSDM. Council is not required to comply with the corresponding
requirement in the Local Government Act 2002 (LGA 2002) where an alternative
process under the Preliminary Act applies.
10 Staff have
prepared the Consultation Document to support community engagement and
participation in the Council’s decision-making processes relating to the
WSDM.
DISCUSSION
Process
11 During
consultation, in accordance with the Preliminary Act, Council must make the
following information publicly available:
a) The proposal (being the preferred option), an
explanation of the proposal and the reasons for the proposal.
b) An analysis of the reasonably practicable options (including
the proposal), which must include:
· the option to remain with the existing approach for delivering water
services; and
· the option to establish, join or amend (as the case may be) a water
services CCO or a joint local government arrangement.
c) How proceeding (or not) with the proposal is likely to
affect Council’s rates, debt, levels of service and water services
charges.
d) Community implications (if joint) and
accountability/monitoring arrangements (if assets transferred).
e) Any other relevant implications of the proposal
that Council considers will be of interest to the public.
12 Council is
only required to consult once but may decide to undertake further consultation
before deciding on a WSDM.
13 Consultation
on the WSDM is a separate process from the 9YP consultation process.
Consultation on the WSDM will be under the Preliminary Act whereas consultation
on the 9YP will be under the LGA 2002.
14 There will
be one consultation document for the 9YP and another consultation document for
the WSDM. Each consultation document will cross reference the other.
15 It is
anticipated in the Consultation Document that submissions will open at 9am on
31 March 2025 and close at 12 noon on 30 April 2025.
16 Given that
a decision on the WSDM has the potential to impact the 9YP, there will be
combined Hearings in May for both the 9YP and the WSDM.
17 It is
intended that Council would make a decision on the WSDM after consultation with
the public in mid-May 2025 to enable staff to continue preparation of the WSDP
to meet the statutory deadline in September 2025.
Consultation Document
18 The Consultation
Document explains the Council’s proposals for the future delivery of
Dunedin’s water services. Its content is based on the decisions
made at the Council meetings on 26 February 2025, and requirements
of the Preliminary Act and the Local Government (Water Services) Bill. The
Local Government (Water Services) Bill is currently going through the
legislative process so is subject to further amendment.
19 The Consultation
Document asks the community to have their say about the future of water
services and whether they agree with Council’s preferred In-House model option
or whether they would prefer the alternative, the CCO model option.
20 The
Consultation Document provides:
· a
description of Local Water Done Well reform and key principles
· the
water services delivery models being consulted on and Council’s
preference
· an
overview of the two models
· financial
and non-financial comparisons
· reasons
for and against each model
· an
outline of what the choice means for residents
· information
on current water services and infrastructure.
21 If changes
to the Consultation Document are recommended by Council, these will be
incorporated into the document prior to being graphically designed and
published alongside the 9YP on 31 March 2025.
OPTIONS
22 There are
no options as Council need to comply with statutory timeframes for submitting
the WSDP. If Council was not to approve the Consultation Document, then this
would delay the process for preparing the WSDP.
NEXT STEPS
23 Staff will
update the Consultation Document if required following this Council meeting,
prior to being graphically designed and published. The formal consultation
period commences on 31 March 2025 to 30 April 2025.
Signatories
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Authoriser:
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David Ward - General Manager, 3 Waters and Transition
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Attachments
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Title
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Page
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⇩a
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Draft Consultation
Document for LWDW
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10
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SUMMARY OF CONSIDERATIONS
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Fit with purpose of Local Government
This decision enables democratic local
decision making and action by, and on behalf of communities, and promotes the
social, economic, environmental and cultural well-being of communities in the
present and for the future.
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Fit with strategic framework
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Contributes
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Detracts
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Not applicable
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Social Wellbeing Strategy
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✔
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☐
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☐
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Economic Development Strategy
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✔
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☐
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☐
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Environment Strategy
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✔
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☐
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☐
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Arts and Culture Strategy
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☐
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☐
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✔
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3 Waters Strategy
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✔
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☐
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☐
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Future Development Strategy
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✔
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☐
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☐
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Integrated Transport Strategy
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☐
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☐
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✔
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Parks and Recreation Strategy
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☐
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☐
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✔
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Other strategic projects/policies/plans
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✔
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☐
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☐
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This report has been prepared with reference to the
Dunedin strategic framework.
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Māori Impact Statement
The Consultation Document records that Council is
committed to working closely with mana whenua to shape the future of water
services in Ōtepoti Dunedin. Council will
be consulting on the models directly with iwi .
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Sustainability
A key focus of the Preliminary Act is ensuring financial
sustainability. Regardless of which WSDM is chosen Council must ensure
delivery of water services will be financially sustainable by 30 June 2028.
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Zero carbon
The
impact on emissions and zero carbon is likely to be similar under either WSDM
model.
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LTP/Annual Plan / Financial Strategy /Infrastructure
Strategy
This report notes the Consultation Document will be issued
at the same time as consultation on the 9 year plan 2025-34.
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Financial considerations
Financial considerations are discussed in depth in the
Consultation Document.
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Significance
The decision on the future WSDM is considered significant
in terms of the Council’s Significance and Engagement Policy and
therefore is going out for public consultation in accordance with the
Preliminary Act.
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Engagement – external
There will be extensive external engagement on
Dunedin’s future WSDM through this Consultation Document from 31 March
2025 to 30 April 2025.
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Engagement - internal
Staff from Legal, Finance, 3 Waters, Communications and
Marketing, and the Executive Leadership Team have contributed to the
Consultation Document.
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Risks: Legal / Health and Safety etc.
Council must complete a WSDP by September 2025. A decision
on the Council’s model is a critical decision in preparing the WSDP.
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Conflict of Interest
There are no known conflicts of interest.
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Community Boards
Community Boards will have an opportunity to participate
during the consultation and submission phases of the process.
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