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Council
05 March 2025
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File No.:
25/68
4.1 Endorsement
of Local Waters Done Well Consultation Document
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Author(s)
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Justine Moore
Principal
Advisor - Infrastructure | Kaihautū Whakamahere Tūāhanga
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Rob Benefield
Commercial &
Operations Manager | Kaiwhakahaere o ngā Kawenga Mahi
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Pei Shan Gan
Financial
Controller | Kaiwhakahaere Tahua Pūtea
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Lisa Campbell
Strategic
Communications Manager | Tumu Rautaki Whakawhiti Kōrero
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Daniel Haigh
Group Manager
Community Infrastructure | Tumu Rangapū, Tūāhanga Hapori
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Jacinta Straker
Group Manager
Organisation Performance | Tumu Rangapū, Tutukinga Whakahaere
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Approved by
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Monique Davidson
Chief Executive
Officer | Tumuaki
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Purpose | TE PŪTAKE
1. The
purpose of this report is to endorse that the attached draft consultation
document – ‘Have your say on Who Manages Local Water
Services?’ – be approved for community consultation between 10
March and 10 April 2025.
2. Horowhenua
District Council (HDC) will adhere to the simplified consultation process for
decision making outlined in the Local Government (Water Services Preliminary
Arrangements) Act 2024.
This matter relates to Local
Water Services Done Well
Position Council for future
changes to Local Waters Done Well waters arrangements.
Executive Summary | TE WHAKARĀPOPOTOTANGA
MATUA
3. Under the
Local Government (Water Services Preliminary Arrangements) Act, Council is
required to consult on options for the future delivery of water services.
Council has previously considered what options are to be included as part of
the proposal outlined in the draft consultation document and the completed
document is attached for approval.
4. Council
is continuing to actively collaborate with neighbouring councils to explore
joint water services delivery options to address infrastructure challenges,
recognising that significant investment is needed to restore the region’s
water systems. Through analysis of the implications of each option and aligning
with the options proposed by our neighbouring councils, some of the previously
considered options have needed to be altered to remain fit for purpose.
SIGNIFICANCE ASSESSMENT | He Aromatawai Matua
5. This
matter is assessed as significant in terms of s76 of the Local Government
Act.
6. HDCs
water supply, wastewater and stormwater networks are classified as a strategic
asset making any changes to its delivery significant for the community. It is
assessed as being of significant interest to the public and there will be a
significant impact on the public due to the changes proposed.
7. The
Local Government (Water Services Preliminary Arrangements) Act 2024 provides a
more streamlined consultation process to give effect to the matter of
significance.
RECOMMENDATION | NGĀ TAUNAKITANGA
A. That Report 25/68 Endorsement of Local Waters Done Well Consultation
Document be received.
B. That this matter or decision is recognised as significant in terms
of S76 of the Local Government Act.
C. That Council notes its previous preferred option a Joint Council
Water Services Arrangement with Kāpiti Coast District Council is no longer
a practicable option.
D. That Council endorse Option 1: A Water Services Organisation jointly
owned by Horowhenua District Council, Palmerston North City Council,
Manawatū District Council, and Kāpiti Coast District Council as
preferred option.
E. That Council adopt for consultation the draft consultation document
– ‘Have your say on Who Delivers Local Water Services?’ - for
consultation, attached as Attachment A.
F. That Council consults with the community following the streamlined
process for consultation and decision making regarding the transfer of water
services outlined in the Local Government (Water Services Preliminary
Arrangements) Act 2024.
G. That the hearings of any submissions on this matter be heard by Council.
H.
That the Council delegates to the Chief
Executive to make minor editorial changes to the consultation document.
Background | HE KŌRERO TŪĀPAPA
8. The
Government has repealed the previous Three Waters legislation and developed a
replacement model under the Local Water Done Well policy. Under the Local
Government (Water Services Preliminary Arrangements) Act 2024 (the Act),
Council is required to consult on options for the future delivery of Water
Services.
9. It
is a Top Priority to ensure that Council is positioned for future changes to
Local Water Done Well waters arrangements.
Council
Meeting 27 November 2024
10. At
the 27 November 2024 Council Meeting, Council considered which options for the
delivery of water services should be further explored by officers and also
confirmed which options Council does not wish to consider further. This Council
Meeting was open to the public and live streamed. The recording is available on
HDC’s youtube page here.
11. At
this meeting the Chief Executive was instructed to report back to Council with
a Statement of Proposal and the relevant consultation documentation prior to
the commencement of formal consultation (Resolution Number
CO/2024/362).
12. The
three options that Council resolved to include in the document for community
consultation, continue to participate in discussions around, and continue to
assess the viability and implications of include:
· The Multi Council
Joint Water Services Arrangement which includes: Horowhenua District Council,
Manawatū District Council, Palmerston North City Council, and Kāpiti
Coast District Council (Resolution Number CO/2024/354)
· A
Joint Council Water Services Arrangement with Kāpiti Coast District
Council (Resolution Number CO/2024/355). This option was identified as the
preferred option at the time of the Council Meeting on 27 November 2024
(Resolution Number CO/2024/361).
· Status
quo (CO/2024/359)
13. In
addition, it was determined that Council continue to pursue a Multi Council
Controlled Organisation with willing partners that caters for any combination
of two or more Councils for consideration in place of any redundant preferred
options if for any reason any of the Councils relied upon for the preferred
options do not pursue those options (Resolution Number CO/2024/357).
Council
Workshops
14. Since
the Council Meeting on 27 November 2024, workshops were held with Elected
Members on 22 January 2025, 29 January 2025, 5 February 2025 and 12 February
2025, which outlined the progress made by officers as the options for delivery
of water services were explored.
15. These
workshops provided an opportunity for Elected Members to provide feedback and
direction on the service delivery options being developed and to shape the
Consultaiton Document as presented.
Water
Services Delivery Plan (WSDP)
16. The
Act requires all councils prepare a Water Services Delivery Plan (WSDP)
including an adopted service delivery model. This will be developed once
Council has adopted a proposed service delivery model.
17. If
the adopted service delivery model is through a multi-council owned water
service delivery organisation this will be completed jointly with the other
relevant councils. The WSDP will then be submitted to the DIA for approval no
later than 3 September 2025.
18. Following
confirmation that the WSDP is compliant with the requirements of the Act,
Council will be required to publish it online and begin implementation.
Final
Water Services Bill
19. The
Local Government (Water Services) Bill (the Bill) establishes the enduring
settings for the new water services system. The objectives of the Bill are to
ensure water services are safe, reliable, environmentally resilient, customer
responsive and delivered at the least cost to consumers and businesses.
20. The Bill was
introduced to Parliament in December 2024. It reflects key policy decisions
announced by the Government in August 2024.
21. The
Bill sets out key details relating to the water service delivery system,
including:
· Structural
arrangements such as establishment, ownership, and governance of water
organisations
· Operational
matters such as arrangements for changing bylaws and management of stormwater
networks
· Planning,
reporting and financial management
· A new economic
regulation and consumer protection regime based on the existing economic
regulation regime in Part 4 of the Commerce Act which currently applies to
electricity lines services, gas pipeline services, and airport services.
· Changes to the
water quality regulatory framework and the water services regulator
including:
o Changes to the Water Services
Act 2021 to reduce the regulatory burden of the drinking water quality regime
and improve proportionality in the application of regulatory powers;
o A change to Te Mana o te
Wai;
o A
new single standard for wastewater and stormwater environmental performance.
22. The Bill
contains standalone provisions and amendments to a number of other Acts
including, but not limited to the Civil Defence Emergency Management Act,
Commerce Act, Income Tax Act, Local Government Act, and the Water Services Act.
23. Officers
have prepared a submission on the Bill and it is expected that the Bill will be
enacted mid-2025.
Discussion | HE MATAPAKINGA
Consultation
Document
24. Council
Officers have drafted the consultation document outlining three proposals, in
line with Elected Member feedback.
25. Where
legal or financial advice has been received this has been incorporated
following discussion with Elected Members.
Water
Service Delivery Options
26. Council
has continued to actively collaborate with neighbouring councils to explore
joint water service delivery options. In addition, financial and legal advice
has been received to assess the viability and implications of each option. This
section outlines the recommended amendments following analysis of this advice.
Removal of the Option for a Joint
Water Services Arrangement with Kāpiti Coast District Council
27. Kāpiti
Coast District Council (KCDC) have advised HDC that they are no longer going to
include a joint council water services arrangement between KCDC and HDC in
their consultation document.
28. Therefore,
the previous decision where Council resolved to include in the Statement of
Proposal the option of a joint water services arrangement with KCDC is now null
and void (Resolution Number CO/2024/355).
29. It
also follows on that the resolution where this was identified as the preferred
option is now also null and void (Resolution Number CO/2024/361). It is
recommended that the consultation document identify a new recommended
option.
Option 1: A Water Services
Organisation jointly owned by Horowhenua District Council, Palmerston North
City Council, Manawatū District Council, and Kāpiti Coast District
Council
30. This
option has not changed since the Council Meeting on 27 November 2024.
31. This
option has been included in the draft consultation documents as the recommended
option. The previous preferred option is now null and void and legal advice was
received that a recommended option is required. Following discussion with
Elected Members at council workshops, this option was identified as the option
to be presented as the recommended option in the consultation
document.
32. Further
detail on this option is included in the draft consultation document
attached. It is reccomended that this option be the preferred
option.
Option 2: A Water Services
Organisation jointly owned by all willing councils from the Manawatū
Whanganui and Kāpiti Regions.
33. This option
has been included in the draft consultation document to reduce the likelihood
that Council would be required to re-consult with the community in the event
that Option 1 is not viable due to other councils being unwilling to partner
with HDC. It is possible the potential delay would result in the September 3
deadline for submitting the WSDP to the DIA would be missed.
34. Further
detail on this option is included in the draft consultation document
attached.
Option 3: Status Quo
35. HDC
is required to consult with the community on the status quo option. This option
has also not changed since the Council Meeting on 27 November 2025.
36. Further
detail on this option is included in the draft consultation document
attached.
Options | Ngā
Kōwhiringa
37. Council officers have developed a
draft consultation document with Elected Members input and feedback. Throughout
this process, Council Officers have continued to carry out work to fully assess
the viability and implications of each options presented in the document.
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Options | Ngā
Kōwhiringa
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Benefits | Ngā
Whiwhinga
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Risks | Ngā Mōrearea
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Option A (recommended)
· Adopt the draft
consultation document and start community consultation in March 2025.
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·
This option would meet the legal
requirements outlined in the Local Government (Water Services Preliminary
Arrangements) Act and would support the required timeframes being met.
·
This option would also allow HDC to be
completing community engagement activities at the same time as Palmerston
North City Council, Manawatū District Council, and Kāpiti Coast
District Council. This would enable all Councils to be making decisions about
the options at a similar time.
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·
Central Government is working at pace
to develop new legislation. The continually changing political landscape
presents some uncertainty about future requirements. Council Officers are
mitigating this risk by frequently engaging with Central Government
Departments to continue to develop an understanding of the environment and
any changes.
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If an additional option is required
that has not yet been considered, a new consultation document will be
required and community consultation will need to reoccur.
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Option B (status quo)
· No action taken.
· Not adopting the consultation document will prevent community
consultation from occurring.
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This
would be the cheapest option as there would be no costs associated with
community consultation.
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·
Significantly delaying or not undertaking
community consultation would put HDC out of step with other council’s
consultation activities. This has the potential to lead to reputational risk
for HDC.
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HDC would not meet the timeframes
required to complete a WSDP and submit prior to the DIA prior to 3 September
2025.
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Would not meet the legal requirements
outlined in the Local Government (Water Services Preliminary Arrangements)
Act.
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ENGAGING WITH MĀORI | TE MAHI TAHI KI TE
MĀORI
38. For
Māori, water is the essence of life, like the blood of
Papatūānuku (Earth mother) who supports all people, plants and
wildlife. Enhancing the health and wellbeing of our waterways is a priority for
many iwi.
39. It
is acknowledged that mana whenua, and more broadly Māori with respect to
Council’s obligations under The Treaty of Waitangi - Te Tiriti o
Waitangi, are concerned about the protection of environmental and cultural
interests in the Horowhenua. It is specifically acknowledged that this includes
Horowhenua’s water services. The decision currently being made is one
component of a much wider conversation about how Horowhenua District Council
partners with Māori and incorporates the Te Ao Māori world view into
decision making and day-to-day ways of working.
40. Council
Officers have reached out to Iwi and Hāpu through a number of mediums
(including emails, texts, phone calls, and in-person conversations) while
Council has been developing the options for consultation and consultation
document. Iwi and Hāpu have acknowledged the significance of the decision,
and while we have not received any direct feedback on the water service
delivery models proposed, Council Officers will continue to engage with iwi
partners and will welcome the opportunity to engage directly and incorporate
any feedback into the ongoing process.
41. The
development of the WSDP will uphold councils’ responsibilities under the
Local Government Act 2002, promoting Māori participation in decision
making throughout the process.
CLIMATE CHANGE | NGĀ ĀHUARANGI HURIHURI
42. The
decision regarding the adoption of the draft consultation document and
direction for subsequent community consultation does not directly have any
implications for climate change. However, future decisions on the provision of
water services are highly likely to have an impact and will continue to be
carefully considered through the ongoing process.
43. The
consultation document includes further details on the climate change and
resilience implications for each proposed option.
FINAnCIAL AND RESOURCING | TE TAHUA PŪTEA ME
NGĀ RAUEMI
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44. The
detail of the estimated financial impacts for each option is included within
the consultation document attached.
45. The
four Councils have been working together closely to develop the options and
largely this has been done using existing officer time. Morrison Low have been
contracted on behalf of the four councils to provide modelling support and this
cost has been shared across the Councils. This has been funded using existing
budgets for 2024/25
46. $500,000 in
debt funded expenditure will be included in the Annual Plan budget for 2025/26
as a placeholder. This will be for estimated costs to contribute towards a
potential future water services organisation if this is recommended following
consultation.
Legal and Risk | Te Ture me ngā
Mōreareatanga
47. Legal
advice on the consultation document, including the options presented, was
sought from Simpson Grierson. Where appropriate, their advice has been
incorporated into the consultation document.
48. There
continues to be a risk that Council may choose to pursue a joint arrangement
with other councils, and that, through their own decision-making processes,
those other councils may opt to pursue alternative options independently of
HDC. This would result in HDC no longer having a joint arrangement to pursue.
To mitigate this risk, ‘Option 2: A Water Services Organisation jointly
owned by all willing Councils from the Manawatū Whanganui and Kāpiti
Regions’, has been included.
COMMUNICATIONS AND ENGAGEMENT | TE WHAKAWHITI
PĀRONGO ME TE MAHI
49. Community
engagement on the proposed consultation documents will need to follow the
streamlined process for consultation and decision making regarding the transfer
of water services through the Local Government (Water Services Preliminary
Arrangements) Act 2024. Part 3 of this Act sets out the modified consultation
and decision-making requirements in the Local Government Act 2002 (the
‘alternative requirements’).
50. The
‘alternative requirements’ are a simplified process to assist with
the preparation, consultation and adoption of a WSDP. It is a relaxation of the
usual requirements for option identification and assessment and consequential
streamlining for consultation.
51. To
comply with this requirement:
· Council
must prepare, adopt and make publicly available the proposal, an explanation of
the proposal, and the reasons for the proposal;
· An
analysis of the reasonably practicable options included in the proposal;
· How
proceeding with the proposal is likely to affect the authorities rates, debt,
levels of service, and any charges for water services;
· How
not proceeding with the proposal is likely to affect the authorities rates,
debt, levels of service, and any charges for water services;
· If the
proposal involves establishing or joining a joint water services council
controlled organisation the implications for communities throughout the joint
service area of the joint Water Service Council Controlled Organisation
(WSCCO);
· If the
proposal involves transferring ownership or control of a strategic asset to the
WSCCO a description of any accountability or monitoring arrangements the
authority will use to assess the performance of the WSCCO in regard to the asset;
· Any
other relevant implications of the proposal that the authority considers will
be of interest to the public.
52. It
is proposed that community consultation occur between 10 March and 10 April
2025. Meeting these timeframes will allow Palmerston North City Council,
Kāpiti Coast District Council, and Manawatū District Council to all
complete community consultation activities at similar times
Communicating with our
Community | Te Whakawhiti Pārongo ki te Hapori
53. During
community consultation the full consultation document outlining the proposal
and supporting information will be on our website and available to be reviewed
in person at the Civic Building, Te Takeretanga o Kura-hau-pō, Te Awahou
Nieuwe Stroom, and Shannon Library. Supporting documents including a one page
summary, Horowhenua Fact Sheet, and the DIA and Morrison Low financial
modelling reports will also be published online and available to review in
person.
54. During
the community consultation period, there will be a wide range of radio,
digital, newspaper and social media promotion. This will include media
releases, Community Connection story, social media posts on Facebook, Tiktok,
and Linkedin, and a scheduled Facebook Live event.
55. In
person activities are also scheduled including a citizens panel workshop and
the regular cuppa with a councillor sessions.
56. People
will be able to fill out submission forms on our website or by completing a
paper-based submission. Support will be provided to assist people to make
submissions if required.
57. Manawatū,
Kāpiti Coast, Palmerston North City and Horowhenua District Councils are
continuing to communicate with each other and will share information and
provide assistance if queries occur about other communities to ensure correct
information is provided. Council Officers will also be made available for
engagement sessions in other communities if requested.
Next Steps | HEI MAHI
58. Pending
approval by Council of the Consultation Document for community consultation,
community engagement is scheduled to commence Monday 10 March to Thursday 10
April 2025.
59. Hearings
are scheduled to be heard by Council on Wednesday 30 April 2025.
60. It
is scheduled that a report will then be presented to Council Wednesday 14 May
2025 to allow for decision making around the proposed
options.
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Confirmation of statutory compliance
In accordance
with sections 76 – 79 of the Local Government Act 2002, this report is
approved as:
a. containing
sufficient information about the options and their advantages and
disadvantages, bearing in mind the significance of the decisions; and,
b. is
based on adequate knowledge about, and adequate consideration of, the views
and preferences of affected and interested parties bearing in mind the
significance of the decision.
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Attachments | NGĀ
TĀPIRINGA KŌRERO
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No.
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Title
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Page
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a⇩
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Local Waters Done Well -
Consultation Document - for Council adoption
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16
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b⇩
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Local Waters Done Well - One
Page Summary
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56
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