The Citrus Living site at 30 Seon Place, Birkdale on Auckland's North Shore. Photo / Citrus Living
Auckland housing developers say Watercare is charging so much that it is making new projects difficult –but the utility business says it must charge developers who put extra pressure on the network.
Simplicity Living’s Shane Brealey called out Watercare and Vector as Auckland’s biggest development roadblocks, saying there had been “gross overcharging”.
But the two utility monopolies responded to Brealey that they are acting under local council and Government directives.
Now, Citrus Living development manager Mike Lane has complained about raw sewage flowing on to a North Shore property near where he plans a 12-home scheme.
Lane estimates he will have to pay $320,000 in Watercare fees and pipe upgrades:
- $220,000 as a growth fee to Watercare;
- $100,000 to upgrade Watercare’s sewer main, which his new homes will feed into, due to existing sewage overflows on that main.
“Yes, I’m trying to save $100,000 for that upgrade of the pipe, but if I don’t go forward with this project, then this guy still has raw sewage running over his lawn every time it rains heavily.
“And two other developers nearby have stalled their plans due to this pipe problem.”
Watercare’s chief strategy and planning officer Priyan Perera responded to criticism by clarifying the utility provider’s position.
“The developers are being asked to pay for the upgrading of the capacity of that sewer pipe.
“Where a development puts additional pressure on our wastewater networks, that developer must pay for any upgrades that are necessary.
“That’s our approach and that’s consistent all across Auckland.”
Watercare is undertaking a $13.8 billion upgrade of the Auckland system.
Perera also explained why Citrus is being charged the $220,000 growth fee.
“It must pay the infrastructure growth charge, which is applied across all of Auckland, although the amount of money charged varies throughout the city.”
Asked about raw sewage flowing from the Birkdale manhole, Perera said that was taken extremely seriously.
“That should not be happening and we’ve got a programme to address overflows and capacity. We prioritise that work,” he said.
Perera could not say when the manhole sewage overflow would be fixed.
He said Watercare manages 20,000km of water and wastewater pipes “so we must prioritise the upgrades where they are needed the most”.
Lane wants to talk to Watercare, but says it refused to engage.
Perera said Watercare had in fact engaged with Citrus since last August and had been extremely open to engaging with Lane.
“We’ve worked closely with Citrus Living to get to a solution that’s much cheaper but achieved a positive outcome to ensure the situation with the pipes did not get worse,” Perera said.
Responding to Brealey, Perera said Watercare’s door was always open and it was keen to understand his challenges.
“Anything that an organisation like Simplicity can teach us and give us guidance on, we’re more than happy to listen.”
Perera acknowledged Watercare had tankered sewage from new housing sites at Westgate’s Cardinal West and Warkworth.
But the Westgate tankering is about to stop because the situation was resolved.
The Warkworth situation was being resolved with plans to cease tankering in about 18 months.
Citrus is planning an $8 million, 12-townhouse project at 30 Seon Place, Birkdale.
But 500m from that Citrus site, the home owner in a Stotts Ave property gets overflows in big downpours, Lane found.
“It’s the uncertainty of this that gets us. You don’t know at the outset how much you’ll have to pay,” Lane said of Watercare charges.
A civil engineer designed a new drainage system for the engineering plan approval submitted for Watercare’s approval, he said.
“Watercare rejected several design iterations. Then a solution was accepted to connect two existing manholes to accommodate the additional capacity from our development.”
Lane visited the site to assess the works, then learned of the nearby property owner’s existing manhole that regularly overflows.
That is during heavy rain.
“Raw sewage spills across his lawn and into the adjacent creek,” Lane said.
“This raised serious concerns for us.”
Lane said he questioned why Citrus Living was being required to both upgrade what appears to be an already failing public system and also pay infrastructure growth charges of $220,000 plus GST.
“We are simply seeking a constructive response and a willingness from Watercare to sit down and work through a solution, for both the affected resident and to enable us to meet the requirements for our Seon Place development,” he said.
Anne Gibson has been the Herald’s property editor for 26 years, written books and covered property extensively here and overseas.
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