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Wastewater fee frustrates locals

 

 

14 MF-CCFJim2 front page-682JULIA WADE 

Forking out hundreds of dollars for a sewage service not needed or wanted, and which may or may not be used by them in the future, smells a bit off for many locals, who just happen to live a bit too close to Mangawhai’s wastewater line. 

Kaipara District Council’s (KDC) targeted rate, the controversial Capable of Connection Fee (CCF), requires locals who own property currently not hooked up to the Mangawhai Wastewater Scheme, but lie within 30 metres of a main sewer line, to pay for the service due to the possibility they may connect, either directly or via a private drain, in the future.  

The fee bewilders and frustrates many, with landowners who have elected to have other wastewater systems installed or own bare blocks of land still having to cough up for the cost.  

Since mid-May this year, Mangawhai Heads retiree Jim Fountain has been in correspondence with KDC regarding a ‘capable to connect’ letter he received after neighbours began to develop their properties and linked into the wastewater line.  

“One is subdividing so it was compulsory and the other is building a new home so opted in, so this means a pipe has been laid along the front of my property to reach them, and as a consequence I now will be levied around $1000 a year, a 50 per cent increase of my rates, just because it’s there,” he says.  

“I have a state-of-the-art and well-maintained, council-approved bio-system so I do not need or have any intention to hook up to the wastewater line. I was also not consulted about the laying of the pipe.” 

Many affected 
When Fountain developed his property in 2012, the nearest link to the wastewater line was 200 metres away so he decided to install his current bio-system, which cost around $20,000. He says he has no objection to the pipe actually being laid outside his home, only to being charged a fee ‘for something that I am not going to use’.  

“On the council website they claim to follow a ‘user pays’ policy, so how can they justify a specific levy on a ‘non-user’? It seems very unfair that a pipe has been installed for other residents, not myself, and because it happens to pass within 30 metres of my property, I should suddenly be expected to pay this huge increase in rates,” he says. “I’m retired and my only source of income is Government superannuation and a small income generated by my savings which is rapidly becoming depleted… I find this totally unacceptable.” 

With 678 Kaipara residents affected by the CCF, the bulk of 502 being in Mangawhai, Fountain contacted the KDC about his objections, appealing to councillors and the mayor, Dr Jason Smith, to reconsider the policy and also proposed ideas for change.  

“I’ve had two long discussions with the mayor who is understanding, sympathetic and describes my case as ‘unfortunate’, but still states nothing can be done as it is council policy,” he says. “My suggestion was that this levy does not come into force until the property is sold. That way an existing owner is not suddenly hit by a 50 per cent increase in rates for something over which they have no control and which does seem really unfair. The new owner would be aware of the new rate charge and would presumably accept it as part of the cost of buying the property. Over a period of time the council would collect this levy and could do it without antagonising existing owners. I felt that this would be a fair compromise that could be accepted by council, without a major policy change.”  

Lack of consultation 
The suggestion however was rejected by council and while Fountain has no intention of lodging a legal challenge, deeming it fruitless and a waste of money due to council writing the rules, he is optimistic about the democratic process which allows ‘other means to challenge a perceived wrong’ and is trying ‘a new tack’. 

After researching practices detailed in the defining ‘Local Government Act of 2002’ (LGA02), Fountain believes the wastewater pipe was laid without council following correct procedure, which he says requires councils to inform landowners about any work being undertaken on their property and have the right to lodge a complaint, ‘which was not done’.  

“I think the current council has done a pretty good job recovering from the shambles of a dozen or so years ago and believe Kaipara is going in the right direction,” he says. “However, I can think of no legal business that can charge a person a substantial amount of money for something they don’t need, want nor have any intention of using. I can see no logical or moral justification for it. Is this levy worth antagonising a section of Kaipara ratepayers, yet again?” 

14 MF-CCFJim1 overflow-949A legal fee 
Although sounding like an issue for TV consumer watchdogs Fair Go, according to the Department of Internal Affairs (DIA), who oversee local government, under the LGA02 councils ‘are able’ to charge a fee for their wastewater network which runs past an unconnected property. 

DIA director for ministerial advice monitoring and operations, Anita Balakrishnan says the fee ‘is not unusual’. 

“Councils are responsible for managing their wastewater network and for setting rates to pay for this service,” she says. “Having a targeted rate for properties that are not connected to the wastewater network acknowledges that the Council is providing a service that could be available to that property if desired and that there is a cost to providing this service.” 

The CCF is outlined in the Kaipara district’s Long Term Plan and is widely used by many councils, KDC spokesperson Ben Hope says, as properties valuations benefit by having a sewerage scheme close to the vacant section. 

“Those that are capable of connecting have the benefit of that service should they wish to use it. If you have a vacant section and wish to build, laying pipes to connect to the public system is far cheaper than installing an onsite system. Council also wants to encourage owners of sections to develop sections,” he says. “Unfortunately, those with houses and existing on-site systems that are capable of connecting are also required to pay if they meet the 30m definition. We are not asking these properties to connect if they have a compliant on-site system, however if their system fails, they have the benefit of being able to connect.” 

Connection costs reduced 
Currently the existing wastewater catchment zone does not cover the whole drainage district in Mangawhai, however as subdivisions keep sprouting up around the outskirts of the reticulated area more properties become capable of connecting. The connection costs have reduced recently, due to the Long Term Plan decision to equalise costs across the district for wastewater services, with the annual CCF down from $1017 to $790, and the connected rate decreased from $1356 per year to $1,054.  

Residents who struggle to pay the fee may be eligible for the Rates Rebate Scheme and are welcome to contact Kaipara Council regarding the fees, Hope says.  

“We encourage people to talk to us if they have any concerns or are looking for clarity around any change,” he says. “It is Council’s intention that one day all properties within the drainage district will have the service available or are connected. Ultimately the Mangawhai Wastewater Scheme was constructed to protect the harbour and waterways around Mangawhai and all those that live there have the benefit of a nice clean harbour.” 

Taxation and rating powers 
The Ministry of Business, Innovation & Employment’s Consumer Protection department, were also contacted by the Focus for comment regarding the fairness of the CCF. 

Consumer Protection’s national manager Mark Hollingsworth responded, stating that ‘this particular situation appears to be relevant to Local Government legislation, not specifically the Consumer Guarantees Act’.  

“In general, private businesses can only charge for goods and services that they and the consumer have agreed to. However, central and local government bodies have taxation and rating powers. Local government powers in relation to the setting and adjustment of rates are covered by the Local Government (Rating) Act 2002, which is administered by the Department of Internal Affairs (DIA). Therefore, the local council will be the best port of call for advice on the legal basis for why the council charges for services that they provide.” 

Mangawhai Heads retiree Jim Fountain and the wastewater pipe laid along his land which will now cost just under $800 a year; “I have no objection to the pipe actually being here, only to being charged a fee for something that I am not going to use.” PHOTO/JULIA WADE 

Even though Jim Fountain has a state-of-the-art $20,000 bio-system, he still has to pay the sewage pipe connection charge, in case he needs to hook up in the future. The 74-year-old is taking on Kaipara District Council regarding what he believes to be an unfair charge. PHOTO/JULIA WADE 

 

“I can think of no legal business that can charge a person a substantial amount of money for something they don’t need, want nor have any intention of using. I can see no logical or moral justification for it.” 

 

How do other councils treat CCF? 
The Focus contacted a number of district councils around the North Island for comparison on the Capable of Connection Fee (CCF) and it appears larger districts are less likely to charge the fee. 

Both Auckland’s water and wastewater utility, Watercare, and Whangarei District Council say they have no charge for an accessible but not required sewer line, and only charge for connected properties.  

For residents in the Far North, it makes no difference whether they are  connected to the wastewater line or not as the charge is the same. The Far North District Council own and operate 16 separate schemes hooked up to 15 different plants, with availability rates (CCF) and the connected rates differing for each scheme, and annual fees range from $183 in Kaikohe to $698 in Kerikeri. 

Western Bay Council have an ‘availability charge’ similar to the CCF with the actual cost set at the discretion of council ‘with consideration to the relevant financial contributions and other associated connection costs.' 

Hauraki District Council charge an unconnected fee of $333 for a property which lies within 30 metres of a wastewater main and has the ability to connect, and Thames-Coromandel District Council also has something similar for their wastewater line, with an annual ‘serviceable’ charge of $483.85 if a property is within the area of service and the wastewater lines are within 30 metres from their boundary, and a ‘serviced’ charge of $775.60 for connected properties. 


 


Read Mayors response: Wastewater connection fee the price of progress says mayor


 

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