The Te Arawa proposal, which was presented to the council in December, could see the establishment of an iwi board outside the council structure to replace the former Te Arawa Standing Committee.
Te Arawa would appoint or elect a board of up to 14 people with two representatives - with voting rights - to sit on the council's Operations and Monitoring Committee and on its Strategy, Policy and Finance Committee, with one on the Chief Executive Performance Committee and another representative on Resource Management Act hearings panels.
Councillor, and chairwoman of the Rotorua Pro Democracy Society, Glenys Searancke, said the council should consider a mail-out to all ratepayers so the whole city could be informed.
"Not everyone has a computer or can get out to meetings," she said.
Councillor Rob Kent argued the content of the proposal was not legal and could be open to legal challenges.
Council chief executive Geoff Williams told Mr Kent the proposal had been independently reviewed and was above board.
The council's Strategy and Partnerships group manager Jean-Paul Gaston said information regarding the proposal would be printed in the city's newspapers, be available at the council, and staff would hold a number of public meetings.
Councillor Charles Sturt was adamant the consultation period was too short. "Te Arawa have had longer than 12 months to come up with this and I think the public has a right to spend more time debating the issue and to make their own minds up."
Mrs Chadwick said she was happy to extend the consultation period.
Councillor Trevor Maxwell said he was concerned some councillors had already made up their minds and had said so publicly. He questioned whether those councillors should be allowed to participate in the final decision-making process.
Mr Williams said he was already taking independent legal advice.
The submission and consultation process will begin on Monday and end on April 17.
