Rotorua Lakes Council chief executive Andrew Moraes says the proposed restructure is expected to deliver effective services and positive outcomes for the community.
Rotorua Lakes Council has announced a proposed restructure, but its chief executive says it “isn’t about cuts”.
A separate but related proposal would bring the services, assets and staff of council-controlled organisation InfraCore back in-house.
The council issued two press releases about midday on Friday announcing the plans.
It said it sought “confidence in delivering essential services efficiently” in a proposed organisational change, and both plans had been announced to staff.
Chief executive Andrew Moraes said the restructure was expected to deliver effective services and positive outcomes for the community in a financially challenging environment.
The organisation of the council needed to align with its “new direction” and be equipped to deliver on the newly adopted 2024-34 Long-Term Plan, “which sets a vision of a better Rotorua for all”.
“It’s important the organisation develops the agility to adapt to its operating environment.”
The proposed restructure was about ensuring it “focused on results and configured to deliver services and work programmes reliably, within the financial parameters that have been set”.
Moraes joined the council on March 11, after Geoff Williams’ resignation in September.
Moraes spoke to Local Democracy Reporting a month afterwards, saying getting to know and hearing from those in the organisation was his immediate approach.
After speaking to staff and the community and seeing the draft Long-Term Plan feedback, he would consider the next directions and goals, he said at the time.
InfraCore staff, assets and operations would be brought back into the council. Councillors supported this at a confidential July 3 meeting.
Established in July 2015, InfraCore is 100% owned by the council. Its remit includes maintaining the city’s water network, roading, footpaths and public areas such as gardens, sports fields and reserves, operating the cemetery and crematorium and cleaning the city.
Moraes said the council considered the community would be best served by bringing those services in-house.
“InfraCore has served the community really well and the mahi of the staff is highly valued by our residents.
“This isn’t about cuts. It’s about working smarter with what we have.”
Staff were the council’s first priority, he said, and the focus was on working through the proposals with them.
“Like all of New Zealand, our district is facing significant challenges with inflation and the cost of living, so we need to look to the future and consider the most efficient service delivery model for our community and ratepayers.”
A change proposal was shared with InfraCore employees and a consultation process would be undertaken. Employee feedback would be actively sought, reviewed and given full consideration before any final decisions.
The council would work with InfraCore to ensure the necessary resources were allocated to support employee wellbeing, the release said.
“Our focus is on a seamless transition for our people and the services they provide,” Moraes said.
“I want to thank them for their commitment to ensuring community services are seamlessly maintained as we work through this process of change together.”
The council said there would be no further comment until the process was complete.
Under the proposal, InfraCore would reintegrate under the council by September 30.
Rotorua Mayor Tania Tapsell said the council supported Moraes and had confidence in his process.
Interim Infracore chief executive Regan Fraser told councillors in May that the CCO had a $1 million deficit amid struggles to complete projects and an ageing vehicle fleet that needed replacing.
The council appointed an independent facilitator in May 2023 to oversee updated service level agreements, provide information about services impacted by funding constraints, and review cost structures, systems and processes.
The council engaged consultants to find underlying issues and look at what the company offered.
One recommended it complete a full contract revision and update it to current industry standards. The other recommended the council retain Infracore’s services and review key contract elements.
Laura Smith is a Local Democracy Reporting journalist based at the Rotorua Daily Post. She previously reported general news for the Otago Daily Times and Southland Express, and has been a journalist for four years.
- LDR is local body journalism co-funded by RNZ and NZ On Air.
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