Another $6m needed to complete New Plymouth’s water meter rollout

New Plymouth ratepayers are facing an extra $6 million bill for council to complete the installation of water meters throughout the city.

The project, which was controversially voted in under the New Plymouth District Council’s last long-term plan, also faced a 12-month time delay of its original completion date.

The council’s strategic projects’ committee heard this week that the approved $15.5m installation budget would run out in June next year with only 70% of properties having the meters installed.

A steering group, set up last year to oversee the project, had made the decision to de-scope the installation and not exceed the existing budget.

Council must now decide whether to fund the extra $6m, although that decision would likely not be made until the next long-term plan was approved.

The committee heard part of the cost overrun was down to a forecast 2585 properties that would require new boxes or manifolds outside their properties to be able to have a water meter installed.

Despite the issue being identified during the pilot of the installation, council staff did not tell elected members.

The expected price of modifying the manifolds was expected to be $2.147m.

Without the additional $6m, council would struggle to set up an equitable volumetric charging structure because almost a third of the district would not be metered.

“I think common sense would indicate that management will recommend to the council that they continue and fund the shortfall,” New Plymouth mayor Neil Holdom said.

“I think we need to get on and get the job done and realise the benefits, that’s the recommendation I’m anticipating.”

Councillors on the committee were given an insight into options that would be in front of them, including pausing the project, which would lead to a higher overall cost.

Council would also have to consider the implications under the Three Waters reform legislation if the project was paused.

Despite the budget blowout, the committee heard council would be in line to save $34.4m over the next 30 years if the meters led to a 25% reduction in water consumption.

Holdom said it was also important to remember council had to put in place water conservation policies to meet updated freshwater legislation.

“If we can’t prove we are working to conserve and be prudent with our water, we won’t be able to secure the consents to take water from the various catchments that we do.”

The committee also heard council had discovered there were 700 shared connections across the network supplying about 2000 properties which was half the number expected.

However, if any property owner wanted to have an individual water meter installed, it was likely to cost the homeowner $11,500 because of the complexity of the work.

Council’s head of infrastructure, Kevin Strongman, also confirmed the meters would need replacing every 12 to 15 years because the batteries used to power them were not rechargeable.

However, Strongman said the renewal of the meters had been built into the business case.