The sewerage extension was to address problems with ''grey-water discharge'' which emerged five years ago from the council-owned camping ground at Pounawea. In a statement issued yesterday, Clutha District Council chief executive Charles Hakkaart said the original $310,000 budget set by council was based on incomplete estimates, leading to extra costs of $182,680.
The extra costs were due to design changes and non-budgeted items, not delays in completing the project. The extension was completed in late July.
Last November, the council approved construction of a new pumping station and pipeline to Owaka with a budget of $310,000 - $50,000 funded from reserves, $21,000 from the district-wide sewerage upgrade support rate, and the balance from internal loans.
Mr Hakkaart said the budget overruns and extra work should have been reported to the council and its its approval sought before work and expenditure was undertaken. Clutha Mayor Bryan Cadogan said the news was a surprise to councillors.
''We have to work through the process, and until that is complete, we can't say too much more.''
The estimates did not allow for the power supply to the pumping station and the installation of the telemetry and flow metering equipment.
Mr Hakkaart said the estimates did not contain ''any contingency sums to cover unexpected additional costs that may occur during construction of a project such as this''.
''The estimate was also light when it came to costs for laying the pipe, and more pipe ended up being laid in road reserve at higher cost than intended.''
A decision was made to change the design, shifting the pumping station away from the foreshore at the camp entrance to Noble St, making it easier for future connections. Extra work was also done while trenches were open and machinery was in the area to enable up to 45 more connections as well as the township's other camping ground and convention centre.
An earlier survey by the council showed 21 households were interested in connecting to the scheme with another 13 interested in contributing to allow them to connect in the future.
The council will be advising other households in Pounawea that connections were available, and outlining connection costs and annual charges for the service.
Pounawea pipeline
Extension estimate: $310,000
Extra costs: $182,680 (made up from) -
Power supply to pump station: $3500
Flow meter and telemetry: $16,260.
Above budget for pipe laying: $52,000.
Relocation water main: $21,200.
Fixing up grey/black water pipework at camp ground: $12,120.
Design change/extra work for future connections: $77,600.
Actual cost = $492,680.
