District Manager replies:

Waimarino Bulletin, Volume 6, Issue 268, 20 December 1988, Page 6

District Manager replies:

Waimarino District Manager John Murrihy was asked to explain the differences in the prices, as queried by Mr Bishop. He explained that the figure of $270,000 would apply to the

basic contract price for the scheme, which was $247,500 (plus GST, making the total basic contract $272,250). Added to the figure of $247,500 are the costs for pump and valves, $6500; electrical $7000; engineering and administration $45,000; oxidation pond land purchase $10,000; legalisation costs $5000; extra sewerage lateral connections $25,000; which totals $346,000 plus GST. He said other costs yet to be added will be for design and supervision expenses. So far design expenses are estimated to be $30,000 and supervision costs will not be significant, said Mr Murrihy. "We anticipate the total cost will be less than the $409,000 of the original estimate," said Mr Murrihy. In answer to Mr Bishop's letter to the Editor published in the Bulletin on December 13, Mr Murrihy said he agreed the council had a "moral obligation" to keep Rangataua ratepayers informed. He said the ratepayers were each sent a letter in September 87 with cost

estimates for the scheme and they would be notified when the scheme's total cost was known. He said the council had defined t w o options for ratepayers' payment for the scheme. They could either pay a lump sum or pay the amount over a 20 year period. He said both options will still be available to ratepayers. As t o the "consultant's mistake", Mr Murrihy said he didn't think the leaving out of the e m p t y section laterals from the scheme was a mistake and that he wouldn't really blame anyone for it. He said the consultants' original scheme did not include the laterals but that when the project was under way it became clear that it would be cheaper in the long run to provide laterals to all sections. He said if laterals had only been provided to existing houses a system of payment would have had to be worked out where existing dwelling owners would pay more than empty section owners.