Cr Colin Weatherall, who represents the Saddle Hill/Green Island area, said members of the public approached him and the council with concerns Mr Fisher planned to abandon a "gentleman's agreement" and expand the quarry up Jaffray's Hill, the smaller of the two mounds which make up Saddle Hill.
The agreement, which has been in place for about a decade, was that material would be taken from the floor and lower parts of the quarry, but the profile of Jaffray's Hill would not be altered.
Because of the quarry's location on the prominent landmark, quarrying has attracted attention ever since the removal of material began in the 1950s.
Under the council's district plan, quarrying is a "restricted discretionary activity" but is not prohibited.
Mr Fisher maintained he had existing use rights to continue quarrying and those rights also allowed him to expand the quarry, Cr Weatherall said.
He had been told the supply of rocks from the quarry was almost exhausted and Mr Fisher planned a further round of "benching" - expanding the quarry by cutting wide shelves into the hill.
"Then he will be starting to affect the landscape, and that is what is concerning people."
Mr Fisher could not be contacted for comment yesterday.
Cr Weatherall said the council had sent Mr Fisher a letter asking him for existing use rights documentation he was relying on for the quarrying.
Depending on what information was provided, the council might seek an Environment Court declaration.
Council resource consents manager Alan Worthington declined to give the Otago Daily Times a copy of the letter yesterday, saying he could not be sure Mr Fisher had received it yet.
However, he confirmed it was posted last Thursday and said Cr Weatherall's precis of its contents was "not far off the mark".
Mr Fisher's company, Saddle Views Estates, bought about 270ha of land on Saddle Hill - including the quarry - in 2002.
Asked why the council was seeking existing use rights documentation now when community concerns over protecting the hillside profile had been raised regularly for at least a decade, Mr Worthington said the council had no existing use rights documentation in its files and the onus was on property owners to provide it when requested.
