Waipā takes $57m hit

The cost to upgrade wastewater treatment plants in Te Awamutu and Leamington have soared to an unbudgeted $57 million.

Te Awamutu Wastewater plant – $48 million

News the costs for Te Awamutu Wastewater Treatment Plant had gone up from $19 million to $48 million and the Leamington wastewater reticulation upgrade from nothing to $9 million came at a public workshop on Monday.

Ken Morris

The projects had been “reshaped” Business Support group manager Ken Morris told councillors and there would clearly be implications for rates.

The curveball for councillors came near the end of the workshop and visibly affected councillors Roger Gordon and Mike Montgomerie beaming in by Zoom for the workshop.

Gordon shook his head at the bombshell announcement while Montgomerie’s furrowed brow was enough to suggest he was shell shocked too.

The workshop started controversially when Gordon put a point of procedure to the meeting saying councillors had been told to restrict contact with staff and respect their weekends.

Roger Gordon

Yet the agenda for the workshop went to councillors at 5.07pm on Friday for a Monday 1pm meeting. It went online at 11.25am – for the 1pm workshop*.

Nothing in the papers hinted at the $57 million surprise.

Chair Clare St Pierre seemed to close the workshop at the one hour 36 minute mark before Strategy group manager Kirsty Downey and Ken Morris gave their verbal update about the emerging issue related to the Long Term Plan.

“What’s good for the goose is good for the gander,” Gordon said in seeking to delay discussion earlier arguing it had given him little time to prepare. Other councillors agreed but wanted the workshop to continue as they were all – bar Gordon, Montgomerie, Andrew Brown and mayor Susan O’Regan – in the chamber anyway.

Leamington wastewater

An unwell O’Regan listened in, chipping in towards the end with a croaky voice.

Clare St Pierre

Three Waters copped the blame for the increases. Before the government repealed the reforms last year, the costs for the country’s water supplies, storm and wastewater management systems would have been picked up by the new water service entities.

So Waipā had not reviewed the Te Awamutu and Leamington wastewater projects since 2018, Service Delivery group manager Dawn Inglis told the workshop.

While inflation had been applied, a more forensic drill down had not happened until recently.

“It’s not an easy call to front up,” said O’Sullivan but it was important to do it honestly. Staff came to councillors “early and upfront,” she said.

The workshop’s intention was to give councillors the opportunity to provide feedback on a draft financial strategy which increases debt, sets higher rates to pay debt down faster, reduces interest costs, makes the Long Term Plan a nine year one rather than nine one-year plans and provide rates predictability.

Councillors signed off on the direction and will meet twice more this month – the first time to confirm development contribution fees and the budget and the second to discuss a draft infrastructure strategy and performance measures.

But with the figures $48 million and $9 million ringing in their ears, they must be wondering what other surprises are in store.

Stage four of the Te Awamutu project in Paterangi Rd will move the aeration process into a new area on site to create a more efficient treatment facility to cater for growth.

Those growth assumptions – made six years ago – had changed as had geotechnical assumptions, Inglis said.

The Leamington work in Matos Segedin Way had been included in the 2018 Long Term Plan – following the replacement of a pipe and pipe bridge across the Waikato River from the Gaslight Theatre – but was not in the 2021 plan, she said. The implication was it should have been.

*This is a change from the print version which wrongly said the agenda was put online during the meeting.

Te Awamutu Wastewater plant

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