Sewerage bid ‘good deal’ for Riversdale

Riversdale ratepayers have been pleasantly surprised by news that their long-planned sewerage upgrade will cost millions of dollars less than they had feared.
Masterton District Council has made its hotly awaited final decision on who will build the seaside resort's scheme, picking Auckland-based Hopper Construction's $5.78 million tender to build a gravity reticulation system.
The bid was at the low end of prices from the five tenders, which ranged up to $10.07 million, and a ''combination of substantial experience and competitive pricing'' eventually placed it at the top of the list, Mayor Garry Daniell said.
The company has indicated it will start work next month.
The decision, providing the climax of the decade-long saga, means Riversdale ratepayers will have a clearer picture on how much it will cost them to join the scheme.
Under the chosen tenderer they should be able to pick from a lump sum payment of $16,750 spread across two years or annual capital rates payments of $4080 over five years or $1650 over 20 years.
The estimate for on-site costs, including decommissioning of the septic tank and on-property reticulation, is between $3000 and $5000.
Residents will be able to make submissions on the funding policy in April as part of the council's wider Draft Annual Plan process.
The decision also puts to rest debate over whether the system should be pressure or gravity fed.
The latter option had been favoured by vocal Riversdale ratepayers Bill Roberts and Bill Hedley.
''The choice between gravity and pressure came down to deciding on a scheme that had less system complexity, lower preventative maintenance requirements and that the majority of the community favoured,'' Mr Daniell said.
''By tendering and obtaining prices for both possibilities, the council was finally in a position where it was confident it had the best long-term option for the community.
''We feel that selection of Hopper as the contractor is a hugely positive step for all concerned; the many people who have worked so hard to get the scheme built can feel confident that the project is well on track.''
Roddy McKenzie, who said that chairing the scheme's steering group had been his toughest challenge of his three decades as a Masterton councillor, congratulated council officers on their work.
Riversdale Ratepayers Association chairman John Waddington said the cost was much lower than it could have been.
''I think for a lot of people it will be okay, but for some it will still create difficulty, and that needs to be addressed.
''There is still a lot of water to go under the bridge as far as the funding package goes.''
He believed that for long-term payments, there was still the opportunity to reduce the average interest rate of 7.5 per cent assumed by the council.
''The ratepayers will be meeting to discuss it,'' he said.
Mr Roberts yesterday said he had reacted with disbelief at the $5.78 million tender price, as he had been braced for a figure of at least $10 million.
''If the council can guarantee that the contractor will build this scheme in time and for that price, then our community's got a pretty good deal.''
The scheme is expected to be completed by April next year.