Controversial Three Waters reforms pushed through by central government last year will see local councils transfer their storm, waste and drinking water assets and service delivery to a new Water Services Entity on July 1, 2024.
The CODC has $46.5 million remaining of the 2021-24 long-term plan (LTP) capital budget, with an additional $6.8 million in reserves, to spend on Three Waters prior to June 30, 2024.
Addressing councillors at a meeting in Alexandra, Council Three Waters director Julie Muir said of the total $54 million budget, $14 million had been spent in the past seven months and was mainly related to the Clyde Wastewater and Lake Dunstan Water Supply projects.
Included in the schedule to tackle included the Lake Roxburgh Village Treatment Plant upgrade ($900,000), stormwater pipe renewals and network improvements ($2.65 million), Cromwell Treatment Plant upgrade (4.6 million), Dunorling St pump station storage upgrade ($1.5 million) and Lake Dunstan water supply ($10.2 million).
Transition guidance from the Department of Internal Affairs National Transition Unit (NTU) was to "try to spend any cash reserves that we have prior to transition," Ms Muir said.
"If we don’t spend those funds prior to transition, there is a commitment from the DIA it will be spent in the area’s its been raised."
"We do need to up the ante a little bit to get through this ... Completing the works programme will be a big challenge for this council and for the Three Waters team."
Cr Martin McPherson raised concerns about the "pretty optimistic work stream" proposed.
"How confident are we that the industry can actually deliver on this? What’s the capacity like?"
Ms Muir said the programme was being added in to a regional pipeline of works to provide contractors with information on the upcoming work.
A change in economy meant more medium contractors were also expanding their client base at the moment and this provided opportunity, she said.
Central Otago Mayor Tim Cadogan echoed Cr McPherson’s sentiments from a Council staffing perspective.
"Martin asked a really valid question of whether the contractors can handle this, my question is what about this organisation because, we’ve got NTU and an entity function no doubt happening, we know how stretched the staff are, we’ve seen the pressure of the current massive work programme that is put on the team. Can you be quite sure the organisation can handle this kind of programme?"
Ms Muir said management were conscious of the pressure on staff and were managing it.
"Every member of that team is pretty critical."
