$4m savings on Okere Falls project

A major sewerage scheme in the Okere Falls area has come in more than $4 million under budget.

For residents in the Okere Falls, Otaramarae and Whangamarino areas who had expected to fork out more than $9000 each for the scheme, the Rotorua District Council's new total will save them each more than $3300.

The sewerage scheme has cost $12.1 million (including GST), $4.6 million less than earlier estimates of $16.7 million.

Council infrastructure services group manager Nico Claassen said the substantial savings were the result of a highly competitive tendering process, careful cost management and "smart" contract packaging.

Contributing ratepayers' total capital contribution to the scheme will drop from the previous estimate of $9035 (including GST) per household unit equivalent to $5728.

Other residents who have opted to pay for the scheme over a 25-year period through annual rates will pay $474.64 per year rather than $716.77.

Mr Claassen said the council had written to property owners advising them of the cost reduction.

Resident Valerie Kreger was thrilled. She said the council had always given a "worst case scenario" cost structure and the end result was pleasing.

She said the new figures meant she would now consider paying the lump sum, rather than over the 25-year period.

"Now I am evaluating whether to do it in one sum ... I agree [the scheme] is a good thing to do."

The Okere Falls, Otaramarae and Whangamarino sewerage scheme is part of a district-wide programme to improve the water quality of Rotorua's lakes, in partnership with Te Arawa, the Bay of Plenty Regional Council and the Crown. Lakes water quality has been detrimentally affected over many years by nutrient-rich wastewater leaching from septic tanks into groundwater, before making its way into the lakes.

Mr Claassen said other new lakeside community sewerage schemes were now fully operational in Mourea/Okawa Bay, Brunswick/Rotokawa, Okareka and Hinemoa Point, and were starting to show encouraging results in terms of water quality improvement.

He said the Hamurana/Awahou scheme was under construction and additional new sewerage schemes for Rotoma and Rotoiti were at the resource consent planning stage.