Attachment 1

Final Statement of Intent




Statement of Intent 2017-20

1 July 2017

Final for approval of the Wellington Water Committee by 31 May 2017



















Foreword. 4

Who we are. 5

What influences us. 8

What we do. 9

What we want to achieve. 10

Purpose statement. 10

Customer outcomes. 10

Customer service goals. 10

Regional service plan. 12

Customer experience. 12

How we do it. 13

Company result area 1: growing capability, resilience and culture. 13

Specific priority – workforce plan. 15

Company result area 2: creating value for money. 16

Specific priority – service delivery strategy. 20

Company result area 3: working collaboratively. 21

Specific priority – neighbouring councils. 22

Company values. 22

Operating frameworks. 23

Company systems. 23

Risk management. 23

Company performance. 23

Special projects for 2017-18. 23

One Budget and funding certainty. 24

Appendix 1: Organisation structure. 25

Appendix 2: Governance and shareholder information. 26

Appendix 3: Performance measures. 28

Appendix 4: Accounting policies. 31

Appendix 5: Three Year Forecasts. 35




There is much to look forward to in 2017-20. Over the past three years the company has consolidated its strategy of acting regionally across our five client councils but only after establishing trust with them.  This trust has enabled us to start implementing a key regional initiative called One Budget that brings the five Wellington councils’ operational and capital costs under one umbrella here at Wellington Water.


The first part of 2017 was dominated by the flow-on effects of the Kaikoura earthquake.  We expect these effects to continue to have an impact into 2017-18 which is an opportunity for us to work with others to promote the need for our community, businesses and critical users to be more self-resilient by storing at least seven days’ drinking water supply.  We await funding decisions that would enable us to prepare better for aftershocks and to accelerate long term network projects.  Whatever is decided, we feel comfortable that we can provide the best advice for our client councils.


We have also been watching and learning from the inquiry into Havelock North’s water supply contamination and asking ourselves how we can improve the quality of our drinking water.


Our key deliverable to the end of the year is to develop the first optimised regional service plan.  Our councils have collectively told us they wish to see a greater priority placed on water quality, resilience, reducing the impacts of flooding and supporting all council’s growth agendas.  Increasing emphasis in these areas (while continuing to meet the basic customer service goals) is the objective of the regional service plan.  The regional service plan will provide input to councils as they develop their long term plans.  Once approved, the plan will be more linked to water rates and be able to tell the community what changes in service they can expect from investment made in the three waters networks.


While it is still early days we expect our customer panel to provide some insight into our service planning approach and as we ramp up our customer experience work this too will provide useful customer insight into our implementation of customer service goals. We also expect to make further progress with iwi relationships.


All this work is only possible through the actions of our people.  Wellington Water continues to enhance its capability and build a very positive culture.  Our culture is a result of the need to work collaboratively with many parties and to back ourselves to make decisions across the breadth and depth of the organisation.  Our engagement survey results continue to tell us we are on the right track. We see great opportunity as well as challenge ahead of us and we can’t wait to get going.


John Strahl                                                                         Colin Crampton

Chairman of the Board                                                  Chief Executive

Who we are


Wellington Water is a council-controlled organisation jointly owned by the Hutt, Porirua, Upper Hutt and Wellington City Councils, and Greater Wellington Regional Council (GWRC).


We employ 192 staff and provide services to the customers of the metropolitan area of wellington on behalf of our shareholders. 


We manage the three water (drinking water, stormwater and wastewater) networks, infrastructure and services on behalf of our shareholding councils. To do this we manage annual expenditure of approximately $154 million to maintain and develop water assets with a replacement value of approximately $5.3 billion. We also provide investment advice about the future development of three water assets and services.



Each shareholding council owns its own water services assets (pipes, pump stations, reservoirs and treatment plants). Each council decides the level of service it will purchase from Wellington Water, the policies it will adopt and investments it will make (after considering advice from Wellington Water) in consultation with respective communities.

We operate under the Companies Act 1993 and the Local Government Act 2002 and comply with the Health (Drinking Water) Amendment Act 2007, the Drinking Water Standards for New Zealand 2005 (revised 2008) and other legislation such as the Resource Management Act 1991 (and proposed amendments), the Wellington Regional Board Act 1972 and the Health and Safety Reform Act.


How we are governed

Board of Directors

The company is governed by a Board of independent directors.


John Strahl, Chair Cynthia Brophy Nicki Crauford
David Benham
David Wright

The Chair of the Board reports to the Wellington Water Committee. The Board approves the company’s strategy, ensures legal compliance, that the company has necessary capability to deliver and it monitors the company’s performance, risk and viability.

The Board’s approach to governance is to establish with management (and in consultation with shareholders) clear strategic outcomes that drive the company’s performance. The Board is also mindful of its relationship with the Wellington Water Committee and how both the Board and Committee influence the company in different ways.

It supports and empowers management to deliver and report performance using a no surprises approach, by creating an environment of trust where information is freely available, decision making is transparent and strategic conversations provide insights and guidance for the company.

Consistent with a high performance organisation, Board members challenge management (and other Board members) to keep a healthy culture of inquiry and openness.

Wellington Water Committee

The Wellington Water Committee’s five shareholders are the Hutt City Council, Porirua City Council, Upper Hutt City Council, Wellington City Council and Greater Wellington Regional Council. Each shareholder holds 20% of the voting shares (‘A’ shares) of Wellington Water.


David Bassett, Chair,

Wellington Water Committee


Deputy Mayor, Hutt City Council


Wayne Guppy

Deputy Chair, Wellington Water Committee



Upper Hutt City Council


Mike Tana



Porirua City Council


Jenny Brash


Councillor, Greater Wellington Regional Council

Iona Pannett


Councillor, Wellington City Council



The Wellington Water Committee provides governance oversight of Wellington Water and its management of the network infrastructure for the delivery of bulk water, water reticulation, wastewater and stormwater services.


They do this by considering the company’s half yearly and annual reports, monitoring performance of the company, appointing directors to the Board and providing recommendations to shareholders on proposals from the company. The Committee writes an annual Letter of Expectations to the Chair of the Board of Wellington Water which outlines key priorities and areas of focus for the company. Wellington Water has used the Letter to guide development of this Statement of Intent.


Refer to Appendix 2 for information about governance and shareholders.



Briefing new councillors and the Mayor of Porirua City Council, Mike Tana, at an Upper Hutt wastewater pipe renewal site.