136Contracts relating to provision of water services

1. Despite section 130(2), a local government organisation may enter into contracts for any aspect of the operation of all or part of a water service for a term not longer than 35 years.

2. If a local government organisation enters into a contract under subsection (1), it must—

3. continue to be legally responsible for providing the water services; and
4. retain control over the following matters:
   1. the pricing of water services; and
   2. the development of policy related to the delivery of water services.

5. This section does not limit contracts in relation to water services that are entered into solely between local government organisations.

6. A contract entered into by a local government organisation is not a contract to which subsection (1) applies merely because the local government organisation agrees to any 1 or more of the following:

7. to propose the use of a levy under the Infrastructure Funding and Financing Act 2020 to support the construction of eligible infrastructure:
8. to carry out any aspect of the administration of a levy under that Act:
9. the vesting of eligible infrastructure under that Act:
10. to contribute to the construction costs of the eligible infrastructure.

Notes

• Section 136: substituted, on 27 November 2010, by section 32 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).
• Section 136(4): inserted, on 7 August 2020, by section 161 of the Infrastructure Funding and Financing Act 2020 (2020 No 47).