Cr Kevin Gilbert has put forward a notice of motion to be considered at tomorrow’s Dunedin City Council meeting.
It includes requesting "a high-level staff report on options for progressing discussions about a possible unitary authority for Otago".
If councillors support the idea, the report could be completed by the end of this year.
An Otago-wide unitary authority could bring an end to the Otago Regional Council, as its functions might transfer to a large combined new council, but smaller versions of unitary authorities could also be considered.
Cr Gilbert said a joint committee between the city council and regional council, involving councillors and staff, would be a logical starting point "to finally advance the question that has been raised for many years".
"I firmly believe that the conversation about governance structure, including the benefits or otherwise of a unitary council or other potential changes, is one that we need to have", he said in his notice.
Cr Gilbert said he was open-minded about what structure might work best.
"Let’s get in the room and have a discussion," he said.
The Southland District Council is set to discuss similar matters today after a proposal was put forward by the district’s mayor, Rob Scott.
This would replace four councils with two unitary authorities — one based in Invercargill and the other combining the Southland and Gore districts, while Environment Southland activities would be taken on by the two new authorities.
"Four councils are too many for a population of 100,000 — there’s a lot of efficiencies we can do by merging together and preliminary estimates show $10 million a year can be saved," Mr Scott said.
Cr Gilbert said the timing of his notice of motion was not influenced by the Southland proposal.
Otago Regional Council chairwoman Gretchen Robertson said an Otago unitary council might amalgamate six existing councils into one.
"While this proposal is one approach, we recognise that there are other opportunities for efficiency gains, such as councils working together more closely, sharing services and pooling skills," Cr Robertson said.
"These collaborative efforts are already under way and represent a real opportunity for enhanced local governance."
Carefully weighing up pros and cons would be crucial, she said.
"The primary consideration must be whether such a change would genuinely lead to better outcomes for the communities we serve across Otago."
A scaled-down version might emerge, but Cr Robertson doubted a sub-regional model would gain more efficient outcomes for undertaking regional council functions.
Those functions include environmental regulation, water quality monitoring and providing public transport.
One regional councillor in favour of a unitary authority is Michael Laws, from the Dunstan constituency.
New Zealand did not need regional councils and reorganisation of local government was long overdue, he said.
Cr Laws described local government as inefficient and a failure. He was surprised it had taken Dunedin so long to pursue discussions.
The city council voted unanimously in 2017 for a report on the pros and cons of merging its operations with those of the regional council in the Dunedin area.
A report was never produced after council staff gave it a "low priority".
The city councillor behind the 2017 drive, Lee Vandervis, raised the subject again last week.
Regional councillor Andrew Noone said he was open to talks and thought there was potential for a coastal Otago authority and an inland Otago body.
New Zealand has six unitary authorities — Auckland Council, the Chatham Islands Council, Gisborne District Council, Marlborough District Council, Nelson City Council and Tasman District Council.
