Ratepayer feedback forces Waimea Dam rethink

December 9th, 2014
[by David Armstrong]

Contrary to the worst fears of skeptical ratepayers, TDC has heeded the feedback from consultation about the proposed Waimea Dam and will look at ways to significantly reduce costs, which they agree are unaffordable.

In his report to be tabled at the full Council meeting on Thursday, CEO Lindsay McKenzie says that the advice from his staff is that neither of the funding options for the proposed Waimea Community Dam should be adopted.

"Staff conclude from your deliberations that the funding proposals as set out .... are not affordable for Council and the community, nor are they equitable or fair," he wrote.

"Staff advise that neither funding proposal should proceed. If an augmentation scheme is to be built it must be made affordable including by securing significant external funding."

He recommended a commitment to a water augmentation scheme in the future should be conditional on reviewing the project scope; proceeding only if significant external funding is obtained; reducing the ratepayer share of the environmental flows cost; reassessing the urban water supply needs; limiting the proposed ratepayer funding to what is affordable; and funding the agreed share of the environmental flows and urban water supply costs only.

Lindsay requests that staff include $25 million in the Long Term Plan 2 Consultation Document for a water augmentation scheme, being Council's share of the environmental flows and provision for the current and future urban water needs for the Waimea basin.

Such a commitment to funding a water augmentation scheme in the Long Term Plan 2, he says, will be conditional on project scope and external funding being agreed.

The other part of the recent consultation process, concerning dam ownership, resulted in a majority wanting Council to establish a Council Controlled Organisation, he reports.

Lindsay praised submitters to the consultation, saying they "provided thoughtful and high-quality analysis and raised pertinent questions".

"Many submitters thought that the dam was not viable with the current cost and funding model. Many submitters did not support the establishment of a dam at all. Submitters were concerned that they would face significant increases in rates if either .... of the funding proposal was implemented."

Key themes raised by submitters on the topic of the proposed funding model included (lack of) affordability for the Council and community, targeting costs to those who would directly benefit from the dam (user pays), and the importance of external funding and effects of the funding model on different land owners and uses.

The environmental capacity (public good) charge (which would have been applied to all Motueka and Golden Bay residents, for example) was one of the most opposed parts of the Council proposal.

Assuming full Council accepts its CEO's recommendations, a decision whether or not to proceed with the dam, and if so on what basis, will be made when the Long Term Plan is adopted.

"Guidance [from Council] is needed now on what to include in the LTP and the consultation document," Lindsay writes. "To do otherwise, despite the reservations of many, would constitute an immediate 'no' decision and foreclose future options.

"The approximately $74.6 million for the Waimea Community Dam, fully funded by rates, is not considered affordable. A lower figure of up to $25 million, solely for the urban water needs and a contribution to the environmental flows would be more manageable to both Council and ratepayers.

"Further work would be undertaken on the best way to attribute these costs to different classes of ratepayers/beneficiaries. This would be done as part of the future work programme once the project scope has been reviewed."

If accepted, the next steps will be for TDC staff to develop an amended proposal for including in the Consultation Document for the Long Term Plan 2.

"Given that it is proposed that the scope of the project be reviewed, and that this information would not be available prior to March when consultation will commence on this document, further consultation will be needed in 2015/2016 and possibly 2016/2017," Lindsay says.

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