''A momentous occasion'', was how Waitaki Mayor Gary Kircher yesterday described a landmark agreement signed with four North Otago rural water schemes to take back management of their supplies from the Waitaki District Council.
Under negotiation for more than a year, the memorandum of understanding places maintenance and operation of the Windsor, Tokarahi, Kauru Hill and Awamoko rural water schemes under a new company, Corriedale Water Management Ltd.
It initially lasts for two years, with a review after six months, a year, then a final review at the end of two years.
A decision will be made then on what will happen in the future, ranging from the council taking back the management, to Corriedale Water Management continuing or consumers owning the schemes.
Yesterday, three water scheme committee chairmen and a chairwoman, Helen Brookes (Awamoko), Ross Ewing (Kauru Hill) and John McCone (Tokarahi) signed the memorandum with council chief executive Michael Ross.
The scheme representatives agreed it was a major step and landmark agreement.
Mr Kircher and other councillors were at the signing. Windsor scheme chairman Garry McLeod was unable to attend because he was in Invercargill, but will sign at a later date.
The four schemes between them provide drinking water for 1150 consumers and water for stock on about 50,000ha in the Corriedale ward, inland from OamaruThe handover will take effect from the start of the new financial year on July 1.
At this stage, only those four out of 15 rural schemes operated by the council have expressed an interest in own-management.
A different way of managing the schemes was put forward early last year, followed by consultation with consumers who overwhelmingly supported their representatives maintaining and operating the supplies.
That led to further negotiations with the council, the preparation of the memorandum of understanding, its approval by the council last month and signing yesterday.
The memorandum covers all aspects of management and operation of the four schemes, including health and safety issues, maintaining water quality and quantity through to a dispute resolutions process between consumers and the group.
The company believes it can reduce the cost of maintaining and operating the schemes, and consequently what consumers pay for a unit of water.
Already, it has advertised for expressions of interest from contractors or individuals, closing on June 18, to operate and maintain the four schemes.
