Wellington Water Committee



23 February 2018




Order Paper for the meeting to be held in the

 Greater Wellington Regional Council, Level 2, 15 Walter Street, Te Aro, Wellington







Thursday 1 March 2018 commencing at 1.00pm






Deputy Mayor D Bassett (Chair)

Hutt City Council

Mayor W Guppy

Upper Hutt City Council

Mayor M Tana

Porirua City Council

Cr I Pannett

Wellington City Council

Cr J Brash

Greater Wellington Regional Council

Cr D K Ogden

Greater Wellington Regional Council  (Alternate)

Mayor WR Wallace

Hutt City Council (Alternate)

Cr R Leggett

Porirua City Council (Alternate)

Cr G McArthur

Upper Hutt City Council (Alternate)

Cr P Gilberd

Wellington City Council (Alternate)






For the dates and times of Council Meetings please visit www.huttcity.govt.nz


Wellington Water Committee



The Wellington Water Committee ("the Committee") is established to:

·                     Provide governance oversight of the network infrastructure for the delivery of bulk water, water reticulation, wastewater and stormwater services in the areas of Lower Hutt City, Porirua City, Upper Hutt City and Wellington City ("the four cities");

·                    Provide governance oversight of Wellington Water Limited; and

·                     Provide a forum for the representatives of Wellington Water Limited's shareholders (being Wellington Regional Council and the local authorities for the four cities) ("the Shareholders") to meet, discuss and co-ordinate on relevant issues and, through their representatives, exercise their powers.


The Committee is a joint committee of the Lower Hutt City Council, Porirua City Council, Upper Hutt City Council, Wellington City Council and Wellington Regional Council.


Specific responsibilities

The Committee's responsibilities are:

Governance oversight responsibilities

Governance oversight of Wellington Water Limited and of the network infrastructure for the delivery of bulk water, water reticulation, wastewater and stormwater services in the areas of the four cities, including by:


·                     Receiving and considering the half-yearly and annual reports of Wellington Water Limited;

·                     Receiving and considering such other information from Wellington Water Limited as the Committee may request on behalf of the Shareholders and/or receive from time to time;

·                    Undertaking performance and other monitoring of Wellington Water Limited;

·                     Considering and providing recommendations to the Shareholders on proposals from Wellington Water Limited;

·                     Providing co-ordinated feedback, and recommendations as needed, on any matters requested by Wellington Water Limited or any Shareholder;

·                     Providing recommendations to the Shareholders regarding the relevant network infrastructure owned by each Shareholder;

·                     Providing recommendations to the Shareholders regarding water conservation;

·                     Agreeing the annual Letter of Expectation to Wellington Water Limited;

·                     Receiving, considering and providing agreed feedback and recommendations to Wellington Water Limited on its draft statement of intent;

·                     Receiving, considering and providing recommendations to the Shareholders regarding Wellington Water Limited's final statement of intent.

·                     Agreeing when Shareholder meetings, or resolutions in lieu of Shareholder meetings, are required, without prejudice to Shareholder and board rights to call meetings under Wellington Water Limited's constitution;

·                     Seeking and interviewing candidates for Wellington Water Limited's board as needed and approving director appointments and/or removals;

·                     Approving the remuneration of directors of Wellington Water Limited;

·                     Monitoring the performance of the board of Wellington Water Limited; and

·                     Providing recommendations to the Shareholders regarding changes to these terms of reference, the Shareholders' Agreement and the constitution of Wellington Water Limited.


Shareholders' responsibilities


To the extent that each Shareholder delegates its relevant powers to the Committee member it appoints, the Committee will provide a forum for the Shareholders to meet and exercise their powers in relation to Wellington Water Limited.


The membership of the Committee will total five persons, as follows:

·                     One member appointed by Hutt City Council;

·                     One member appointed by Porirua City Council;

·                     One member appointed by Upper Hutt City Council;

·                     One member appointed by Wellington City Council; and

·                     One member appointed by Wellington Regional Council.

[Each appointee must be an elected member of the appointing Shareholder.]


The Chairperson and Deputy Chairperson will be elected by the Committee once all Committee members have been appointed.


For a meeting of the Committee to have a quorum, three members, or their appointed alternates, must be present.

Where the Committee is providing a forum for the Shareholders to meet and exercise their powers in relation to Wellington Water Limited, the requirements of Wellington Water Limited's constitution will prevail.

[Note: Clause 11.3 of the company’s constitution provides that Directors shall be appointed and removed by the unanimous resolution of the shareholders. For this matter the quorum is therefore all five members or their alternates.]


Each member appointed to the Committee must have an alternate appointed by the relevant Shareholder.  The alternate may attend and vote at meetings of the Committee, but only in the event that the primary member is unable to do so.


The Committee will strive to make all decisions by consensus.

In the event that a consensus on a particular matter before the Committee is not able to be reached, each member of the Committee has a deliberative vote.  In the situation where there is an equality of votes cast on a matter, the Chairperson does not have a casting vote and therefore the matter subject to the vote is defeated and the status quo is preserved.

Other than for those matters for which the Committee has effective decision-making capacity through these terms of reference, each Shareholder retains its full powers to make its own decisions on matters referred to it by the Committee.

Standing Orders

The Wellington Regional Council's Standing Orders apply, subject to the provisions for meeting quorum and decision making as set out in these terms of reference taking precedence.


Each Shareholder will be responsible for remunerating its representative on the Committee for any costs associated with that person's membership of the Committee.


Reports to be considered by the Committee may be submitted by any of the Shareholders or Wellington Water Limited.

Duration of the Committee

In accordance with clause 30(7) of Schedule 7 to the Local Government Act 2002, the Committee is not deemed to be discharged following each triennial election.


Common delegations

Governance oversight responsibilities

·                     Each Shareholder will delegate to the Committee the responsibilities and powers necessary to participate in and carry out the Committee's governance oversight responsibilities.


Shareholders' responsibilities


·                     Each Shareholder will delegate to its appointed Committee member and, in accordance with these terms of reference, that person's alternate, all responsibilities and powers in relation to the agreement of:


o   when Shareholder meetings, or resolutions in lieu of Shareholder meetings, are required (without prejudice to Shareholder and Board rights to call meetings under Wellington Water Limited's constitution); and

o   the appointment, removal and remuneration of Wellington Water Limited's directors.





Wellington Water Committee


Meeting to be held at Greater Wellington Regional Council, Level 2, 15 Walter Street, Te Aro, Wellington


Thursday 1 March 2018 commencing at 1.00pm




Public Business


1.       APOLOGIES 


Generally up to 30 minutes is set aside for public comment (three minutes per speaker on items appearing on the agenda). Speakers may be asked questions on the matters they raise.       


4.       Minutes

Meeting minutes Wellington Water Committee, 22 November 2017                 11  

5.       Draft Statement of Intent 2018-2021 (18/137)

Memorandum dated 9 February 2018 by Wellington Water Ltd                        16

6.       Havelock North Inquiry (18/230)

Report No. WWC2018/1/12 by Wellington Water Ltd                                      52


(i)          endorses the recommendation contained in the report;


(ii)         notes that Wellington Water Ltd is well placed in progressing the urgent and early recommendations from the Havelock North Drinking Water Contamination Inquiry Stage 2 report; and


(iii)      supports the recommendations contained in the Havelock North Drinking Water Contamination Inquiry Stage 2 report.”

7.       Half Yearly Report (18/126)

Memorandum dated 8 February 2018 by Wellington Water Ltd                        64



8.       Sustainable Water Supply (18/127)

Report No. WWC2018/1/10 by Wellington Water Ltd                                      91

9.       Company Update Report (18/131)

Report No. WWC2018/1/11 by Wellington Water Ltd                                      95

10.     Draft Water Quality Framework Report (18/128)

Memorandum dated 9 February 2018 by the Divisional Manager, Democratic Services, Hutt City Council                                                                                                                 105

11.     Chair's Verbal Update (18/231)




“That the public be excluded from the following parts of the proceedings of this meeting, namely:

13.     Minutes - 22 November 2017

14.     Board Membership (18/115)

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:








General subject of the matter to be considered.

Reason for passing this resolution in relation to each matter.

Ground under section 48(1) for the passing of this resolution.




Minutes of the Wellington Water Committee held on 22 November 2017 -  Minor Item Not on the Agenda - Wairarapa amalgamation

The withholding of the information is to carry on, without prejudice or disadvantage, negotiations.  (s7(2)(i).


That the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exist.




Board Membership.

The withholding of the information is necessary to protect the privacy of natural persons. (s7(2)(a)).

That the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exist.


This resolution is made in reliance on section 48(1) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or 7 of that Act which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public are as specified in Column (B) above.”







Kathryn Stannard




                                                                      11                                       22 November 2017

Wellington Water Committee


Minutes of a meeting held in the Council Chambers, 2nd Floor, 30 Laings Road,
 Lower Hutt on Wednesday 22 November 2017 commencing at 1.05pm




Deputy Mayor D Bassett (Chair) (Hutt City Council)

Mayor W Guppy (Upper Hutt City Council)

Mayor M Tana (Porirua City Council)

Cr P Gilberd (Alternate Wellington City Council)

Cr D Ogden (Alternate Greater Wellington Regional Council)


APOLOGIES:                  Cr J Brash (Greater Wellington Regional Council) and Cr I Pannett (Wellington City Council)


IN ATTENDANCE:       Mr T Stallinger, Chief Executive (HCC) (part meeting)

                                          Mr C Crampton, Chief Executive (WWL) (part meeting)

                                          Mr J Strahl, Chair (WWL)

                                          Mr D Wright, Board Member (WWL)

                                          Ms J Bryan, Principal Advisor (WWL) (part meeting)

                                          Mr C Laidlaw, Chair (GWRC) (part meeting)

Ms K Stannard, Manager, Democratic Services, HCC

Mrs H Clegg, Minute Taker




 The Chair invited Mr Wright to the table.  Mr Wright gave a brief history about his professional career and thanked members for their confidence in appointing him as Board Chair of Wellington Water Ltd.


1.       APOLOGIES 

Resolved:                                                                                  Minute No. WWC 17501

That the apologies received from Cr J Brash and from Cr I Pannett be accepted and leave of absence be granted.”  


There was no public comment.      


There were no conflict of interest declarations.

4.       Minutes


Resolved                                                                               Minute No. WWC 17502

“That the minutes of the meeting of the Wellington Water Committee held on Friday, 1 September 2017, be confirmed as a true and correct record.”


Company Update Report (17/1751)

Report No. WWC2017/5/309 by Wellington Water Ltd



The Chief Executive of Wellington Water Ltd (WWL) elaborated on the report.   He stated the process for seeking tenders for operations and maintenance had commenced and significant interest had been received.  He advised WWL had adopted a plan to review customer service and was working with Porirua City Council to develop a customer tracking and experience model, for the upcoming Scottish Water visit.  He highlighted the More Tanks Faster concept.  He noted Councils needed to establish the best way forward to ensure all households stored enough water for seven days following a disaster event.   He advised the uptake of individuals buying tanks had recently plateaued.  He added that central government had recently paid for half the cost of emergency water supply networks.  He further added that WWL could install water tanks to residences in areas where they were already working to reduce costs.  He advised that population growth within the region would impact on future water demand forecasting.  He noted major investment in new water storage facilities had been brought forward due to this growth and that Councils should address this issue in their Long Term Plan processes.

In response to a question from a member, the Chief Executive of WWL advised the three year rolling funding programme had been well received by all Councils and had enabled WWL to better plan and strategise. 



Resolved:                                                                                 Minute No. WWC 17503

“That the Committee:

(i)    asks Wellington Water Limited to report back firm costings to implement a pilot programme to supply and install household water storage tanks in a suburb; and

(ii)     asks that each local authority adds the matter of supply, purchase and installation of household water tanks to its Long Term Plan processes in order to gauge public opinion on the issue.”



The Chief Executive of WWL advised District Health Boards were implementing their resilience programmes and the Hutt Valley DHB was already constructing a seven day capacity water reservoir.  He advised that despite the reduced consumption rate of water per household, growth in population had resulted in water consumption reaching record levels.  He cautioned that major capital expenditure for new water storage facilities and water saving measures would be required sooner than expected.  He advised the Waterloo Treatment Plant upgrade was proceeding well despite added work, and congratulated Greater Wellington Regional Council for their collaborative approach.  He added the expanded project was currently tracking on time and within the adjusted budget, with completion date due mid-December 2018.  He anticipated many directives from the inquest into the Hawkes Bay situation.  He agreed to report on Demand Management to the next Committee meeting with a view to organising a workshop on the issue so that a strategic case could be formalised.

In response to questions from members, the Chief Executive of WWL advised the current leakage rate throughout the system was within expected levels at 14%.  He noted that population growth had brought the issue of Demand Management to the fore.  He acknowledged discussions and consultations could take up to three years.



Resolved:                                                                                    Minute No. WWC 17504

“That the Wellington Water Committee receives Wellington Water Limited’s Company Update Report.”



Letter of ExpectationS 2018/19 (17/1719)

Report No. WWC2017/5/310 by the Divisional Manager, Democratic Services



The Chief Executive of Hutt City Council explained the process followed to draft the Letter of Expectations, adding it had been a collaborative process between Councils.

In response to questions from members, the Chair of Wellington Water Ltd (WWL) agreed that investment in information technology (IT) would require careful monitoring.  He reminded members that the Letter of Expectations would be translated by WWL into its Letter of Intent.  He added that the reason for suggesting IT investment and expenditure was to increase efficencies between Councils, noting any expenditure would first require the members approval.

The Chief Executive of WWL advised that WWL was in the process of searching for new premises.  He agreed to keep members updated.



Resolved:                                                                                    Minute No. WWC 17505

“That the Committee:

(i)    receives the report; and

(ii)   agrees to the 2018 Letter of Expectations to Wellington Water Limited attached as Appendix 1 to the report and authorises the Committee Chair to sign the letter.”



 7.      Information Items


Meeting Schedule 2018 (17/1611)

Memorandum dated 18 October 2017 by the Divisional Manager, Democratic Services


The Chair of Wellington Water Ltd (WWL) advised that, in the light of the recent Waikato media attention, WWL did not use business class for travel nor did it charge meals back to the company.   He thanked members and shareholders for their renewed confidence and support of WWL, Deputy Mayor Bassett for his leadership and Board members.  He added that WWL was fortunate to employ a Chief Executive of Mr Crampton’s calibre.


Resolved(Deputy Mayor Bassett/Mayor Guppy)     Minute No. WWC 17506

“That the Committee agrees to the meeting schedule for 2018 as follows:


(i)    Thursday, 1 March 2018 commencing at 1pm (Greater Wellington Regional Council, Level 2, 15 Walter Street, Te Aro);

(ii)   Tuesday, 29 May 2018 commencing at 1pm (Upper Hutt City Council Chambers);

(iii)  Thursday, 6 September 2018 commencing at 1pm (Committee Room, Porirua City Council); and

(iv)  Thursday, 29 November 2018 commencing at 1pm (Committee Room 1, Wellington City Council)”


Submission to Hamilton City and Waipa District Councils - Shared Waters Management Company (17/1762)

Memorandum dated 16 November 2017 by the Divisional Manager, Democratic Services


The Chair elaborated on the memorandum.


Resolved                                                                        Minute No. WWC 17507

“That the Committee approves the draft submission to Hamilton City and Waipa District Councils – Shared Waters Management Company,  attached as Appendix 1 to the memorandum.”

The Chair thanked the outgoing Chair of Wellington Water Ltd for his outstanding service to Wellington Water Ltd.

8.       QUESTIONS   

There were no questions.



Resolved:                                                                                  Minute No. WWC 17508

“That the public be excluded from the following parts of the proceedings of this meeting, namely:

10.     Minutes - 1 September 2017

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:








General subject of the matter to be considered.

Reason for passing this resolution in relation to each matter.

Grounds under section 48(1) for the passing of this resolution.




Minutes of the Wellington Water Committee held on 1 September 2017

The withholding of the information is necessary to protect the privacy of natural persons. (s7(2)(a)).

That the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exist.


This resolution is made in reliance on section 48(1) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or 7 of that Act which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public are as specified in Column (B) above.”



There being no further business the Chair declared the meeting closed at 2.28pm, and the non-public portion of the meeting closed at 2.33pm.






Deputy Mayor D Bassett




CONFIRMED as a true and correct record

Dated this 1st day of March 2018



MEMORANDUM                                                  16                                                        01 March 2018

Our Reference          18/137

TO:                      Chair and Members

Wellington Water Committee

FROM:                External Author (Wellington Water Ltd)

DATE:                09 February 2018

SUBJECT:           Draft Statement of Intent 2018-2021




That the Committee receives, considers and provides feedback on the draft Wellington Water Limited Statement of Intent, attached as Appendix 1 to the memorandum, by 12 April 2018.



To invite Council feedback on the draft Statement of Intent (SOI) 2018-2021.



Under the Local Government Act 2002 the Board of Wellington Water must deliver to its shareholders a draft SOI before 1 March 2018.

The Board of Wellington Water has considered the draft SOI and endorsed its release to the Wellington Water Committee and Councils for consultation.  It contains direction provided by the Wellington Water Committee’s Letter of Expectations.


What’s different about this SOI


We have made a step change to the SOI this time.  It is written from a customer perspective to make it more user friendly and reflect the emphasis we are putting on the company to be more customer focused.


We have reviewed performance measures so they really drive towards outcomes and behaviour change across the whole business.  Measures are yet to be fully developed but when completed they will provide a clear three year picture of what we want to achieve each year.  This means we will do more of a light touch review of the SOI each year for the next three years.  We will cross reference Department of Internal Affairs measures on our website.


Navigating the SOI


The SOI has five sections.  Its starts by describing how Wellington Water contributes to the local community, then explains how we get water to and from communities and what we do for customers (our customer promise).  We are focused on providing good customer experience and cost effective service.


The next section called ‘keeping the water running’ explains how we deliver our customer promise by preparing for growth, providing operational and maintenance services, improving services and how we respond in emergencies.


Then the SOI talks about how we work as a company to deliver for customers. This section focuses on growing capability, working collaboratively with customers and iwi and creating highest value for money services.  We also talk briefly about how the world is changing around us.


The attachments contain information about what is influencing us in our operating environment, who we are, our service goals and finances.




The Committee and shareholding Councils can provide feedback through Hutt City Council tony.stallinger@huttcity.govt.nz by Thursday, 12 April 2018.







DRAFT SOI 2018-21






How the SOI addresses the Letter of Expectations









Author: External Author (Wellington Water Ltd)






Attachment 1

DRAFT SOI 2018-21






























Attachment 2



Wellington Water Committee

C/- Hutt City Council

Private Bag 31912

Lower Hutt 5040


23 November 2017



John Strahl, Chairman

Wellington Water Limited

Private Bag 39804

Wellington Mail Centre



Dear John




Wellington Water Ltd is entering its fourth year of operation.  This letter sets out areas of focus we would like to see the company address, which we would expect to be expressed in its forthcoming Statement of Intent.


We have identified four priority areas:


·    to continue to put the customer at the heart of what the company does and provide us with confidence that customer views are taken into account in the company’s service planning and delivery.

·    to keep focusing on the four areas of service planning (growth, resilience, flooding and water quality).

·    to introduce the disciplines of economic regulation on the company with a view to generating improved value for money.

·    anticipating changes in Government direction that includes having plans in place for addressing climate change, water quality and emissions.


Each of these priorities is discussed in more detail below.




We can see the company is starting to make good progress with improving its customer relationships.  Given customers also come to Council contact centres we are keen to work in a cohesive way to enable a single view of customer data and identify opportunities for improving customer experiences.  One way to encourage improved customer experience is to allow the company to be driven by a few key customer metrics (ie complaints).

Investment decisions we make for three waters are ultimately on behalf of rate paying customers.  It is for this reason that we think it is time to allow the Regional Service Plan (and 30 year infrastructure strategy) and changes to it over time to be influenced by customers.  This could be achieved by involving the Customer Panel and Iwi for example more in the company’s service planning work.


Service planning


The top priority for the company over the next few years is to implement the Regional Service Plan, working with Councils to adjust it in line with Long Term Plan (LTP) changes.  This would include planning for growth, meeting any requirements of the National Policy Statement for Urban Development Capacity and developing a rolling three year capital programme that proactively addresses customer issues.  We would expect the company to address the following three waters issues over the next 10 years:


·    Upgrading and/or installing new assets to support growth.

·    Improving resilience from hazards through long-term projects, operational response and household preparedness (more tanks faster and two bucket system).

·    Improving water quality through the Whaitua process and reducing wastewater overflows.

·    Reducing the impacts of flooding.


These priorities are in common across all shareholding Councils, although levels of investment will vary depending on specific requirements of each city.


As the company considers improvements to water quality we would expect it to anticipate and be ready for results of the Havelock North Inquiry Stage 2 results.  We would like continued assurance that drinking water supplies are well positioned to comply with new or different requirements.


We would like the company to work with us to introduce regionally-consistent non-asset solutions, such as District Plan provisions, encourage changes in behaviour through education, policy and standards changes and codes of practice to help mitigate the impacts of storm water (eg flooding and degraded water quality).   This could be achieved for example by incentivising (or requiring) water sensitive urban design, hydraulic neutrality, minimum floor levels, setbacks from open streams, and the protection of overland flow paths. 


Value for money


Now the company has matured we would like to see it introduce a value for money system that reports long term performance in terms of cost per connection to households, three waters and by Council.  The company can engage with Councils on how we optimise investment in the 12 service goals.   We would also like to see the company develop key productivity measures on large expenditure items which demonstrate value for money.   When combined with key customer metrics, this should result in a comprehensive way of demonstrating value to us.


We would like the company to continue to review and research international developments in 3 waters services.   We would like to be kept up to date on new technologies and any developments which would have applicability here in the Wellington Region.

Government direction


We would like to be kept well briefed on progress against the new Government’s policies (ie water quality of rivers and streams, enabling growth in affordable housing and preparing for climate change and reduced emissions).  Given Wellington Water Ltd’s critical mass we would expect the company to provide leadership on some of these challenges to the water sector.


We support the company’s aspirations to explore alignment with some of the UN Sustainable Development Goals.  We look forward to hearing which ones the company chooses to commit to and how this might enhance achievement of the company’s outcomes.


Other considerations


In addition to the four priority areas there are several other initiatives we would like the company to embrace over the next few years.  One is about developing a demand management strategic case with options that include considering future water source implications and options to better manage demand.


Another is about reviewing the company’s business processes which could lead to a business case that considers simplifying and regionalising complex IT systems (ie asset management system).  We recognise that the company was not originally set up with regional systems and that developing them will require alignment with Council systems along the way.


Keep making the new health and safety vision and behaviours part of everyday life for the company and providing leadership to the sector.  We would like assurance that critical health and safety risks and wellness initiatives are well managed.


In conclusion


We look forward to working with Wellington Water Ltd, as the company’s performance remains critical to our success and fostering customer satisfaction.


Yours sincerely


David Bassett Signature 2 (2)


David Bassett

Chair, Wellington Water Committee


UHCC-Logo-(Raster)_COLOUR(RGB) (2)cid:image001.png@01D35EF0.B174F330

Attachment 3

How the SOI addresses the Letter of Expectations


How the SOI addresses the Letter of Expectations.


Letter of Expectation

How we’ve addressed it



Priority area 1: customer at heart and a single view of customer data and improving customer experience

We’ve bought customer to the front of the SOI so it guides everything we do

We have customer metrics against each of our 3 outcomes

We’ve added a cost per connection focus to increase rates transparency (value for money)

We’ve introduced safety of customers around our assets and interacting within our construction works


Priority area 2: keep focused on service planning areas of growth, resilience, flooding and water quality

These are all covered in the section called Keeping the water running


Priority 3: Preparing for economic regulation

We have introduced a cost per connection and value of assets measure. Both these require us to behave more in checking with an independent regulator sitting alongside


Priority 4: Anticipating changes in government direction incl. climate change, water quality and emissions

We’ve added a new piece of work to measure and then reduce carbon emission

Water quality requirements under the National Policy Statement for freshwater management are included as well as our contribution to the Natural Resources Plan. In terms of climate change our main focus remains on reducing flooding.


Allow customers and iwi to influence the regional service plan

We have the customer panel and iwi engaging in the service planning task



Regional service plan

We’ll provide this document after consultation with relevant parties and it will cover growth, resilience long term projects, household resilience, improving water quality through Whaitua and reducing impacts of flooding


Havelock North stage 2

We’ve introduced a new section called responding to change and will talk about how we are reasonably well placed for the first set of recommendations but we still have some work to do around water safety plans for example.


Non asset solutions

We’ll work with developers to encourage more water sensitive urban design and use of non-asset solutions such as hydraulic modelling.

We have reflected the need for considering more non asset regionally consistent solutions where possible such as hydraulic neutrality


Cost per connection by three waters and council

We’re building the system to enable us to calculate this over the next few years.


Productivity measures

We’ve introduced a range of productivity measures across capital work, customer service and maintaining assets, consultancy panel effectiveness


Review and research international developments in three waters

We’ll ensure our Chief Advisors keep pace with international developments

We have included a measure to introduce Smart Solutions





                                                                                      52                                                        01 March 2018

Wellington Water Committee

21 February 2018




File: (18/230)





Report no: WWC2018/1/12


Havelock North Inquiry





Purpose of Report

1.    To provide assurance that Wellington Water Limited is well placed on the urgent and early recommendations arising out of the Havelock North Drinking Water Contamination Inquiry Stage 2 Report.



It is recommended that the Committee receives and notes the report. 


2.    Central government is yet to provide its response to the Inquiry’s recommendations but we are comfortable that the company is in good shape regarding the urgent and early recommendations, especially with our recent upgrade at the Waterloo Water Treatment Plant and work underway to develop the first Regional Water Safety Plan.

3.    We anticipate that a Drinking Water Regulator could be established with an arms-length relationship with the Ministry of Health.  This regulator may include Drinking Water Assessor responsibilities.

4.    Further recommendations signal more change ahead, however we will have more time to work these through (eg licensing of Water Treatment Operators, legislative and regulatory improvements relating to the Drinking Water Standards for New Zealand, National Environmental Standards regulations and Resource Management Act).


5.    There were 51 recommendations from the Havelock North Inquiry Stage 2 Report that have wide reaching implications for the water sector in New Zealand and will forever change the risk landscape of drinking water supply.

6.    The recommendations are in two sets. The first focuses on urgent and early changes and the second set focuses on longer term changes. Of these long term changes our main focus is ensuring our staff (and potentially those of our suppliers) can meet any new certification requirements and that the company will meet new water supplier licencing requirements.

Urgent and Early Recommendations

7.    Of the total 51 recommendations, 19 are urgent and early in nature.  Actual recommendations are in Appendix 1 to the report.  In summary , they relate to promulgating the use of six principles to the water industry (Appendix 2 to the report); abolishing the ‘secure’ bore water classification, making changes to the Drinking Water Standards for New Zealand (DWSNZ) around transgressions and protozoa compliance, and encouraging effective treatment.

8.    The urgent and early recommendation suggested establishing a drinking water regulator to introduce new requirements for licensing and qualification of supplies, compliance and enforcement and approval and monitoring of Water Safety Plans.  The recommendations also encourage establishment of joint working groups with regional public health and water suppliers.

9.    A panel of drinking water experts is being established to provide advice to the Ministry of Health.  Where possible and appropriate we’ll be involved in designing any new procedures or standards as they evolve.

How are we progressing?

10.  Our progress against the urgent and early recommendations is in Appendix 3 attached to the report.  In summary we have:

·    provided Ultra Violet (UV) treatment and permanent chlorination at the Waterloo Water Treatment Plant.  All Wellington metropolitan water sources now have barriers against microbiological contamination

·    participated in the forming of a Joint Working Group with Regional Public Health and other agencies to increase collaboration and plan for improvements in drinking water supply and provision

·    engaged a renowned water expert to help us complete our update of the Regional Water Safety Plan and are developing critical control point documentation.  This work will be well advanced by the second week of March 2018.

·    provided input to hearings on the Natural Resources Plan (NRP) which proposes changes to water quality management.

11.  We have also been working closely with Greater Wellington Regional Council (GWRC) to better understand the Waiwhetu Aquifer.  This is relevant given the Inquiry recommends removal of the secure bore water classification, and is also relevant to catchment risk assessments required as part of the Regional Water Safety Plan.  These will inform future planning.

12.  We are assisting GWRC with the Waiwhetu Aquifer Water Collection Area Management Plan, to increase understanding of protection zone requirements for the Waiwhetu Aquifer and create a catchment management plan around the wellfield.

Potential longer term changes arising from the Inquiry

13.  We will need to wait and see what develops out of the longer term recommendations.  A number of these require more detailed evaluation and consultation.

14.  You will note one of the recommendations suggests Government should consider options for aggregating water supply entities.  Wellington Water is an example of such a model, as is Watercare in Auckland.






Urgent and early recommendations from the Havelock North Inquiry Stage 2 Report



Six Principles



Wellington Water Progress against Urgent and Early Recommendations










Author: External Author (Wellington Water Ltd)




Attachment 1

Urgent and early recommendations from the Havelock North Inquiry Stage 2 Report


Urgent and early recommendations from the Havelock North Inquiry Stage 2 Report



[1]        As contemplated by its terms of reference, some of the Inquiry’s recommendations would, if accepted, involve changes to the existing law, and others are likely to require detailed reviews or consultation with interested parties.  The Inquiry appreciates that these processes will take time.

[2]        Other recommendations will not need a change to the law and can be implemented early, and without undue difficulty.  In light of the public health and safety risks involved, and given the disastrous consequences which can occur following contamination of drinking water, the Inquiry’s view is that implementation of such recommended changes should take place as a matter of urgency.  The risks of not doing so are simply too great.  Some of these measures have already been accepted as appropriate by interested parties, and are being pursued.

[3]        The recommendations identified in this part would substantially improve the safety of drinking water in Havelock North and elsewhere in New Zealand, and could prevent a recurrence of an outbreak of waterborne illness.


[4]        In the light of the above, and for the reasons set out in the earlier parts of this report, the Inquiry recommends the following for urgent and early implementation:

Promulgate Principles of Drinking Water Safety

(1)       The six fundamental principles of drinking water safety should be recorded and promulgated to the industry and used to inform all recommended reforms as well as the operation of the entire drinking water system.

[See Part 2 of this report]

Abolish the Secure Classification System

(2)       The secure classification system in section 4.5 of the DWSNZ should be abolished forthwith.  The concept of a secure classification is fundamentally flawed as it does not provide a sound or safe basis for dispensing with treatment or reducing monitoring requirements and provides an erroneous and misleading message that the bore water is safe.

(3)       The Director-General of Health should urgently encourage and persuade suppliers and DWAs not to rely on any current “secure” bore water classifications.  To this end, the Director-General should give consideration, inter alia, to publishing a statement relating to the performance of the duty imposed on suppliers under the Health Act in ss 69U and/or 69W.

(4)       Section 4.5 of the DWSNZ should be deleted forthwith, with such other consequential changes as may be needed (for example, amendments to sections 3.1 (Compliance and Transgressions), 3.3.1 (Determinands), (Free Available Chlorine Disinfection), 4.3.9 (Response to Transgressions), 5 (Protozoal Compliance), 10.3.2 and Table 10.1 (Microbial Treatment Requirements)).

(5)       In respect of the changes to the DWSNZ identified in recommendation (4) above, the Minister of Health should utilise the powers in s 69P(2) to dispense with consultation before amending the DWSNZ, on the basis the Minister can be satisfied from the contents of this report, and the Stage 1 Report that the amendment is needed urgently.

[See Part 15 of this report]

Encourage Universal Treatment

(6)       Because the risks to the public of untreated drinking water are simply too high to continue with such supplies until legislation mandating universal treatment has been considered and passed, the Director-General of Health can and should, in the interests of public safety and welfare, exercise effective and practical leadership to encourage water suppliers to use appropriate and effective treatment without delay.

(7)       The Director-General of Health should promptly provide firm and clear advice to drinking water suppliers that all supplies should be appropriately and effectively treated pending any change to the law and/or the DWSNZ.

(8)       The CEOs of DHBs (with PHU responsibilities) should advise drinking water suppliers that all supplies should be effectively treated pending any change to the law and/or the DWSNZ.

[See Part 5 of this report]

Establish a Drinking Water Regulator

(9)       A dedicated drinking water regulator which can oversee all other reforms should be established early and promptly.

(10)     The important fundamental characteristics of a dedicated drinking water regulator should include:

(a)        Independence and freedom from conflicts of interest;

(b)        A sufficient level of resourcing; and

(c)        Proper expertise in relation to all relevant disciplines necessary for the delivery of safe drinking water.

(11)     Without defining or limiting the matters for which a regulator might be responsible, a regulator should have responsibility for licensing and qualification of supplies, the standards and practices of water suppliers, DWAs, laboratories and samplers, compliance and enforcement, and the approval and monitoring of WSPs.

(12)     Pending any legislative change in relation to the creation of a drinking water regulator, a Drinking Water Regulation Establishment Unit should be set up to address the matters set out below:

(a)        Maintaining momentum;

(b)        Facilitating the establishment of a drinking water regulator; and

(c)        Facilitating the hand-over to a drinking water regulator.

The Ministry of Health’s current disaggregated drinking water resources do not possess the necessary skills and attributes and should not be used for this purpose.

[See Parts 7 and 10 of this report]

Interim Improvements at and by the Ministry of Health

(13)     The Ministry of Health, via the DWAs and Medical Officers of Health, should take urgent steps to administer and enforce the existing regulatory regime, having regard to the findings and recommendations in this Stage 2 Report.

(14)     Further:

(a)        The Director-General should promptly put in place a clear and effective enforcement policy which emphasises, but is not limited to, the issuing of compliance orders by Medical Officers of Health under s 69ZZH, with a view to urgently improving compliance levels by suppliers.

(b)        The Director-General should reformat the annual report and make effective use of ss 69ZZZB and 69ZZZC to hold suppliers accountable in a meaningful and direct way.

(c)        The Ministry of Health should establish a panel of drinking water experts (with expertise across the range of different disciplines relevant to the delivery of safe drinking water).

(d)        The panel of drinking water experts should provide advice to the Ministry in relation to implementation of all required interim improvements.

(e)        The Ministry of Health should take all necessary steps to boost DWA numbers and resources.

(f)         The HPO qualification should be removed as a requirement for DWAs.

(g)        The Ministry of Health should urgently apply a substantial increase in resources and skills to drinking water so as to give effect to these recommendations.

(h)        Dr Snee’s recommendations to simplify and clarify accountability for DWAs should be refined, as appropriate, and adopted.

(i)         After 23 February 2018, the Director-General should issue a notice without delay under s 69Z(2)(vi) requiring any supplier who has not incorporated critical control points and process control summaries in its WSP to do so within two weeks.

(j)         The Ministry of Health should recommend to the Minister that he invoke s 69P(2) to dispense with consultation and urgently amend the DWSNZ to require routine monitoring of total coliforms and to remove the use of presence/absence testing for E.coli and total coliforms.

(k)        The Ministry of Health should establish an effective regime for drinking water samplers, including (at least) training, certification, and oversight.

(l)         The Director-General should promptly remove Level 2 laboratory recognition.

[See Parts 7 and 19 of this report]

Amend RMA to Expressly Recognise Drinking Water Source Protection

(15)     Sections 6 and 30 of the RMA should be amended to expressly recognise protection and management of drinking water sources as a matter of national importance and as a function of regional councils, respectively.

(16)     The above amendments should be considered for processing, if appropriate, through the statute amendments bill process on the basis that they are matters of clarification and do not alter any substantive law.

[See Part 13 of this report]

Accelerate NES Regulations Review

(17)     The review of the NES Regulations should be accelerated and consideration should be given to rewriting them as a matter of high priority to address the specific problems identified in this Stage 2 Report.

[See Part 14 of this report]

Encourage Joint Working Groups

(18)     DHBs (with PHUs) should establish as soon as practicable (with the assistance of the Ministry of Health), a JWG (or groups) responsible for oversight of drinking water safety in their respective regions.  Such JWGs should operate along the lines of the Hawke’s Bay JWG and the CDWRG described in this Stage 2 Report.

[See Part 9 of this report]

Urgently Amend the Health Act

(19)     Sections 69P and 69R should be the subject of urgent amendment.  Sections 69P (obligation to consult) and 69R (commencement of DWSNZ) effectively mean that no change can be made to the DWSNZ in less than five years, which is a wholly unacceptable timeframe.



Attachment 2

Six Principles


Six Principles


Embrace a high standard of care

1.            Unsafe drinking water can cause illness, injury or death on a large-scale. All those involved in supplying drinking water (from operators to politically elected representatives) must therefore embrace a high standard of care akin to that applied in the fields of medicine and aviation where the consequences of a failure are similarly detrimental to public health and safety. Vigilance, diligence and competence are minimum requirements and complacency has no place.

Source protection is paramount

2.            Protection of the source of drinking water provides the first, and most significant, barrier against drinking water contamination and illness. It is of paramount importance that risks to sources of drinking water are understood, managed and addressed appropriately. However, as pathogenic microorganisms are found everywhere, complete protection is impossible and further barriers against contamination are vital.

Maintain multiple barriers against contamination

3.            Any drinking water system must have, and continuously maintain, robust multiple barriers against contamination appropriate to the level of potential contamination. This is because no single barrier is effective against all sources of contamination and any barrier can fail at any time. Barriers with appropriate capabilities are needed at each of the following levels: source protection; effective treatment; secure distribution; effective monitoring; and effective responses to adverse signals. A “source to tap” approach is required.

Change precedes contamination

4.            Contamination is almost always preceded by some kind of change and change must never be ignored. Sudden or extreme changes in water quality, flow or environmental conditions (for example, heavy rainfall, flooding, and earthquakes) should arouse particular suspicion that drinking water might become contaminated. Change of any kind (for example, personnel, governance, and equipment) should be monitored and responded to with due diligence.

Suppliers must own the safety of drinking water

5.            Drinking water suppliers must maintain a personal sense of responsibility and dedication to providing consumers with safe water. Knowledgeable, experienced, committed and responsive personnel provide the best assurance of safe drinking water. The personnel, and drinking water supply system, must be able to respond quickly and effectively to adverse monitoring signals. This requires commitment from the highest level of the organisation and accountability by all those with responsibility for drinking water.



Apply preventative risk management

6.            A preventive risk management approach provides the best protection against waterborne illness. Once contamination is detected, contaminated water may already have been consumed and illness may already have occurred. Accordingly, the focus must always be on preventing contamination. This requires systematic assessment of risks throughout a drinking water supply from source to tap; identification of ways these risks can be managed; and control measures implemented to ensure that management is occurring properly. Adequate monitoring of the performance of each barrier is essential. Each supplier’s risk management approach should be recorded in a living Water Safety Plan which is utilised on a day to day basis.

Attachment 3

Wellington Water Progress against Urgent and Early Recommendations


Wellington Water Progress against Urgent and Early Recommendations


Havelock North Inquiry Stage 2 Report Recommendation

Current status


Direct or indirect impact on Wellington Water

Comment on our position

Promulgate principles of drinking water supply



We are always looking for ways to improve (ie. learning more about contaminants) but overall are probably more green than amber. Some of the six principles are in order such as multiple barriers against contamination, but others are work in progress with key stakeholders such as GWRC on protecting the drinking water source and some are about long term behavioural and cultural change. We have committed to being mindful of these principles in our new Statement of Intent.

Abolish the secure classification system



We don’t rely on secure bore water anymore.

Encourage universal treatment



We now have multiple treatment applied to drinking water.

Establish a drinking water regulator



While this is green there’s an element of unknown. We’re well positioned if a regulator comes in but it will require us to be licensed as a supplier and have appropriate certification for staff etc so could be some work in that. Drinking Water Assessors are likely to be harder on us in future and we have bit of work to so with samplers/labs. The regulator will monitor Water Safety Plan’s and ours is under review.

Interim improvements at and by the Ministry of Health


Indirect (MOH)

Unknown what MoH changes will be and what the panel of drinking water experts will do and how this could impact on us – at this stage a bit unknown.

Amend RMA to expressly recognise drinking water source protection


Indirect (GWRC)

Greater Wellington Regional Council (GWRC) has a role to protect and manage drinking water sources but we can help by ensuring no leaks in our wastewater network for example


Accelerate NES regulations review


Indirect (GWRC)

Imposes requirements on Regional Councils to manage consent applications and compliance with Regional Plans to protect drinking water for human consumption.


The implications for us are that we comply with requirements being set by GWRC. We are fully compliant with our water take and discharge consents. However we do have unconsented discharges, which we are working with GWRC on to manage, but none of these are in locations that would affect the safety of drinking water supplies.


The NES requires Regional Councils to ensure that effects of activities on drinking water sources are considered in decisions on resource consents and regional plans. Specifically regional councils are required to:


·    decline discharge or water permits that are likely to result in community drinking water becoming unsafe for human consumption following existing treatment

·    be satisfied that permitted activities in regional plans will not result in community drinking water supplies being unsafe for human consumption following existing treatment

·    place conditions on relevant resource consents that require notification of drinking water suppliers if significant unintended events occur (eg, spills) that may adversely affect sources of human drinking water.


We believe we’re fully compliant.

Encourage joint working groups



A joint working group MoU is in development and we already have good relationships.

Urgently amend the Health Act


Indirect (MOH)

Unknown – depends on what changes to the Drinking Water Standards New Zealand are required in less than 5 years - previously we’ve had 5 years to make changes required.


MEMORANDUM                                                  64                                                        01 March 2018

Our Reference          18/126

TO:                      Chair and Members

Wellington Water Committee

FROM:                External Author (Wellington Water Ltd)

DATE:                08 February 2018

SUBJECT:           Half Yearly Report




It is recommended that the Committee receives the Half Yearly report for Wellington Water Limited attached as Appendix 1 to the memorandum.


Purpose of Memorandum

1.    To provide the Half Year Report for Wellington Water for the period 1 July 2017 to 30 December 2017.


2.    Under the Local Government Act 2002, the Board of Wellington Water Ltd must deliver to its shareholders a Half Year Report within the two months of the end of the period.  This would be to 28 February 2018.  Although the meeting is set down for 1 March 2018, the report will have been provided a few days prior to this.

3.    Overall Wellington Water Ltd is tracking well against its Statement of Intent (‘SOI’) for 2017-20.


4.    Wellington Water Ltd has made adjustments against the SOI including developing an operational response plan instead of a programme business base for waste water resilience.  Wellington Water Ltd will be working with Wellington City Council on climate change instead of developing a separate strategic case.







Draft Half Year Report 2017




Author: External Author (Wellington Water Ltd)



Attachment 1

Draft Half Year Report 2017



Half Year Report

1 July to 31 December 2017

MASTER DRAFT 12 February 2018



















Foreword. 3

What we do. 4

What we’ve achieved. 5

Customer experience. 7

Company result area 1: Growing capability, resilience and culture. 8

Company result area 2: Creating value for money. 10

Company result area 3: Working collaboratively. 14

Operating frameworks. 16

Appendix 1: Who we are. 17

Appendix 2: Customer outcomes and goals. 19

Appendix 3: Performance measures. 20

Appendix 4: Financial Statements. 25




The first six months of the year was dominated by the delivery of the Waterloo Treatment upgrade works. Following the discovery of E.coli in the water exiting the Waterloo Treatment plant our Councils’ agreed to add Ultra Violet light and chlorine to the treatment process. This was a big job and it needed to be finished by the end of 2017, because once the rivers supplying water started to reduce we needed the Waterloo plant to operate at full capacity. We are pleased to report the project was completed on time.


This has enabled us to reassure our councils that all water supplied to the customers of the Wellington region pass through a multiple barrier system affording the highest protection for consumers.  We have also reviewed the urgent and necessary recommendations flowing from the Havelock North Inquiry and we are in good shape with all of them.


Other highlights for the six months include:

·    We started the second exploratory bore in the harbour as we look to find an alternative water supply for Wellington city. This second bore had encountered a thicker Aquifer in better condition than the first bore hole. We are now analysing the results.

·    We’re 25 per cent through setting up our emergency water sites throughout the region.  We expect a small amount of slippage to the deadline of 30 June 2018.

·    We hosted some experts from Scottish Water. They reviewed our developing customer systems and gave us advice on what we need to do differently to improve in this area. One of the key recommendations was to build a customer culture within the company.  We have started this work and plan to have it substantially complete by the end of the year.

·    We had one of the driest November’s on record. Demand for water soared and we had to start using water from the Stuart McCaskill lakes to supplement supply. To curb demand we raised our demand management intervention to a total sprinkler ban.  Fortunately the weather has been less dry since then and in February we lifted the sprinkler ban.


The company continues to mature. We have made great progress on our Service Delivery Strategy.  We have completed the review of our health and safety system and issued our new vision of ‘people first, every time’. We are in good shape to tackle the next six months.






Attachment 1

Draft Half Year Report 2017


What we do

Our role is to plan and deliver the three waters (drinking water, wastewater and stormwater) services to the local community.

We’ve achieved this by detailing what we will deliver in a single regional service plan, which has been agreed with our five shareholding councils. This plan identifies future infrastructure investments and their rationale from both a regional perspective and, when significant, from a local or council perspective. The plan is supported with budgets for each client council. Councils’ then use this information to develop their long-term plans and infrastructure strategies (for all assets).

Services include the collection, treatment and delivery of drinking water for our client councils; the construction, operation, management and maintenance of three waters networks assets and systems; as well as treatment facilities, pump stations, reservoirs and related networks. Ongoing and effective development and maintenance of these assets is critical for the local economy.

We have continued to progress four regional initiatives. These are to:

·    build resilience for drinking water supply and wastewater;

·    develop an integrated catchment approach to manage water and land use to achieve better outcomes (i.e. improve urban water quality);

·    better plan for and accommodate urban growth and change; and

·    better understand climate change impacts on our three waters networks.

We’ve continued to deliver a capital works programme that includes the upgrade, renewal and development of our three waters network infrastructure. This involved managing the lifecycle of water assets to support our communities’ three waters needs and accommodating council growth strategies and changes. It also required close collaboration with our suppliers and contractors to deliver to required standards (including health and safety).


What we’ve achieved

We orientate all our planning to three customer outcomes and 12 service goals. By doing this we can assure our client councils and our customers that all of activities such as. Budgets are directed to providing the right services today and into the future. Our current performance against our three customer outcomes and 12 service goals are provided in Appendix 2. This performance assessment is across the region as a whole. Individual council performance sheets are provided directly to councils.

Highlights of our performance in the four key areas:

·    Respond to growth - we continue to meet day to day requests. Our biggest task in this area is to complete all three waters models by 2021. We are on track for this. We have also prioritised modelling completion in the high growth areas.

·    Reduce the impacts of flooding - we are on track with all our stormwater models and working collaboratively with the Greater Wellington Regional Council (GWRC) on integrating models. We are progressing to plan on the Kilbrinie and Porirua CBD flooding works.

·    Improve water quality - we are an active part of the Porirua Whaitua. It is generally progressing to plan. The Hutt/Wellington Whaitua is being set up. We have made an application for a global stormwater consent for the region.

·    Resilience - good progress has been made with our emergency water sources work. We are 25 per cent through the work. There is a lot to be achieved in the next six months however all the planning has been completed so we forecast we will be completing it a little after 30 June 2018. The second exploratory harbour bore is being progressed. Household resilience is slowly improving.

Regional Service Plan

To help us deliver our customer outcomes and customer service goals, we have developed a 30-year Regional Service Plan (formally known as the regional asset management plan). This signals to our five client councils’ what to invest in and why against each customer service goal.

Following extensive engagement over the past 18 months on three waters investment priorities, we delivered a 10 year plan and 30 year strategy, which will be incorporated into each of the councils’ Long Term Plans (LTP). During the next six months we will be developing a detailed capital expenditure (capex) activity plan, which will inform our three-six year rolling programme from July 2018.

The Regional Service Plan identifies operating and capital expenditure needs over the LTP period with a specific focus on potable water quality, urban growth, flooding, health of waterways and resilience.

A number of significant capex items have been identified in the 10-30 year plan including the following:

·    proposed new reservoirs to accommodate growth and improve resilience through more storage in the urban areas;

·    extensive wastewater network improvements which are aimed at reducing overflows into the receiving environments and accommodate growth and improve resilience;

·    a number of significant projects have been identified across the region to address flooding risk including PCC CBD, Tawa and Kilbirnie. Delivery of this work will ultimately improve resilience and strengthen the regional economy;

·    a sludge management activity has been included in both Wellington City Council (WCC) and Porirua City Council (PCC) plan to address the treatment of waste arising from the treatment plants; and

·    ongoing renewals across all three waters assets to maintain customer levels of service and the value of the region’s assets.

We have been part of councils’ Long Term Planning teams to ensure these documents represent the issues correctly. Over the first six months of 2017/18 we have had conversations with our client councils’ about how to optimise three waters investment as they consider investment across all council infrastructure assets. Our main aim is to ensure a well-balanced programme of investment and consistent treatment of regional initiatives (activities applying to all councils). We will now wait for council deliberations and decisions.

The company has been developing its first three waters strategy which takes a 30-50 year perspective on the issues and potential responses. The strategy has been completed to draft stage and is being socialised with client councils. Eight future service studies have been identified from this document, which will ultimately inform councils’ Long Term Plans.


Customer experience

Delivering a positive customer experience as we carry out our work will encourage people to trust us to manage their water services, and make them more likely to listen to our messages.

To help us understand how well we’re doing, we’re developing a suite of customer service measures. These will help us channel feedback about us into improvements we can make. A key part of this process is the customer hub, which is jointly operated with our maintenance service provider Citycare. Feedback and customer call-backs are carried out from the hub.

We recognise we have a long way to go in building a first class customer service model. To help us along, we invited representatives from Scottish Water to share their experiences and learning. Their input will guide our planning for the future as we look to establishing the service delivery alliance.

We are working towards a common customer experience across the region. We want to streamline and improve our customer measures, to make them more useful to both us and our customers. So while we are already using the results of customer service feedback to be more customer-centric, we feel we can do better in this area, and will continue working on that for the remainder of the year.

Statement of Intent Measure


Develop a suite of customer service measures and start using the results to guide our business to be more customer centric.











We have started to develop a suite of customer measures. They include:

·      Customer feedback (Year to Date (YTD) number of complaints, compliments and call-backs, % of complaints completed in timeframes, customer call-back ratings, capex project surveys, and customer feedback by quarter and YTD).

·      Job summary per council (total number of jobs progressed and by priority, total average of jobs in progress and by each water type).

·      Citycare volume – (Last seven days number of jobs logged by council, job volume per 1000 connections by council, type of job, job volume by priority, and job % by status).

We will start using the results to guide our business. We will report on our progress at year end.

Of an annual 10% sample of call-backs to customers, 80% have a satisfactory experience.

Our customer hub conducted a total of 34 customer call backs to help understand customer satisfaction. 88% of our customers received a satisfactory experience (excellent).

We also conducted our first customer survey and received 1115 responses, 95% of customers are satisfied with the experience they received. 

Invite Scottish Water to review our customer work and provide recommendations for future improvement.

Scottish Water visited us in August 2017 and made some suggestions for improvement. We’re incorporating these into our planning and discussions with potential alliance partners. We have documented these suggestions in the form of a Customer Plan which includes the following priorities: develop a set of customer behaviours; improve the relationship with customer contact centres; improve road signage; improve end-to-end customer process; and publish a customer report.



Company result area 1: Growing capability, resilience and culture

We want to be an organisation where people can do their best, and we are continuing to develop our capability and organisational culture to support the achievement of our customer outcomes and service goals. Our priority initiative was to develop and embed a workforce plan, which will help us develop the capability of our people and meet our future challenges.

Health and safety

The launch of our Health and Safety Vision and Behaviours has seen a positive increase in culture with all of our teams being involved with promoting and discussing how these vision and behaviours relate to them and the work they are doing.

The period has seen us meeting our Health and Safety performance levels in terms of Lost Time Injury Frequency Rate (LTIFR), Total Recordable Injury Frequency Rate (TRIFR) and positive to negative reporting ratio.

Statement of Intent Measure


Staff engagement scores for “Safety Environment” increased in 2016 to 85%. This is 18% higher than the international benchmark and a 6% lift for Wellington Water in the same area since 2015. Our target is to maintain this achievement during 2017/18.

Staff engagement scores for Safety Environment reduced 4% from 85% to 81%. We will attempt to identify the root causes and develop actions to address them. This will be re-measured in 2018/19.


Near hit/risk reporting/something good ratio to total recordable injuries. Target: Increasing ratio of 50% year-on-year towards a stretch target of 25:1 by end of 2018/19. Our focus is on lifting contractor performance.

The near hit/risk reporting/something good ratios to total recordable injuries are as follows

·      Overall Ratio 54:1 (well above target of ≥ 25:1)

·      Wellington Water 83:1

·      Contractor 48:1 (the contractor ratio has lifted due to an increase in contractor interactions).

Standard lag measures such as injury frequency rates for lost time, total recordable injury. Targets: LTIFR[1] 1.5 and TRIFR[2] 6 per 200,000hrs.

Both LTIFR and TRIFR rates have reduced compared to the 12 months to June 2017.

·      LTIFR – Wellington Water 1.1 / Contractors 2.4 (Total 1.55 – slightly above achieving target of ≤1.5)

·      TRIFR - Wellington Water 1.1 / Contractors 5..3 (Total 3 – well below the target of ≤6)


Our leadership development programme is continuing to evolve as senior leaders take over the responsibility of facilitating group learning and discussion.

Statement of Intent Measure


All staff participates (within six months of joining) in a one day workshop for adaptive leadership.

One day adaptive leadership workshops have been facilitated for staff, and will continue to be provided. While the goal is for all staff to participate within six months of joining, in some cases this has not been met due to number of attendees and their availability. Overall result is above 95%.

An evaluation of how well peer learning groups are working will be completed by the end of 2017.

An evaluation took place in August 2017. Ongoing discussions with peer learning groups are now in place to track progress.


We want to be a high performing organisation. To achieve this it’s important we have highly engaged employees who deliver performance, go the extra mile, and intend to stay.

While the 2016 employee engagement survey showed a significant increase in engagement from 2015, the 2017 survey has seen our overall engagement score go through a downward corrective and is now at the international benchmark. The recent survey indicates uncertainty about our future continues to be an area of concern for our people. Managing change effectively, while lifting engagement, will continue to be a priority for us.

Communications and Health and Safety continue to be strengths, both results sitting well above the benchmark. Further investigation will be required to identify the specific areas to focus on in the year ahead to improve engagement. In addition to continuing to focus on the development of leadership and individuals, we have developed a Wellness Strategy within the Health and Safety framework, and implemented an extensive package of initiatives, which have been very well received by our people.

Statement of Intent Measure


We continue to see an increasing trend in our overall engagement score.

There was a reduction in the December 2017 overall engagement survey score, particularly around the ‘future’ questions i.e. expectation of what is to come within the organisation over the next two years. We will need to analyse the overall results to determine the root causes and actions required.

Working across the company

To make sure we are as effective as possible in our service planning approach we have organised our people into groups with an overriding mantra that workflow is more important than structure.

Statement of Intent Measure


Working effectively across the organisation will be measured by adding a new specific question on workflow to the next engagement survey.


A question was added into the Engagement Survey in December 2017 "People at Wellington Water work collaboratively (together) to get things done across the groups." The overall score was 57% (not benchmarked).

Note: This means 57% of respondents either strongly agree or agree with this statement. Only 3% responded negatively to this question.

Specific priority – workforce plan

The workforce plan was agreed with Leadership and Customer Service as the key areas to focus on. Our ability to attract and retain skilled and capable people remains critical to our success. We have encouraged managers and staff to focus on individual development and growth, and we have continued to develop our engineering capability, through partnering with Engineering New Zealand.

We now have around 205 roles and our growth in numbers can be attributed to the transfer of the Porirua Works Depot, plus a role from Wellington City Council, to Wellington Water, along with other newly funded roles to support water quality and urban growth.

Statement of Intent Measure


A workforce plan signed off by the Senior Leadership Team by 1 July 2017 and key areas developed and actioned.

A workforce plan was approved in July 2017. Two key focus areas have subsequently been identified as Leadership and Customer Service. We have added a capability in critical roles. We propose to take a regional approach to this issue over the next 12 months.

Company result area 2: Creating value for money

Our biggest value for money offering is to optimise the Regional Service Plan. Complementary to this, we have also implemented regional initiatives for resilience, climate change, urban growth, and catchment areas. Our priority initiative is to implement the Service Delivery Strategy.

Regional service plan

The regional service plan has been prepared to inform our client councils’ 2018-28 Long Term Plan (LTP) and Infrastructure Strategies. These documents will remain in draft until the LTPs have been finalised. The regional service plan addresses key issues that have been identified through gaps in performance in service goals and through discussion with client councils. We will know if this plan works when our performance against the key service goals is improving. The plan has been informed by a three waters strategy which highlights required improvements.

Statement of Intent Measure


Produce a regional service plan and provide input to councils’ 30 year Infrastructure Strategies to inform council 2018-28 Long Term Plans.

A draft of the third generation plan incorporates investment requirements to close the gaps on service goal performance. Budgets have been submitted to each of the councils and the draft documents have been completed. The final documents will be finalised after consultation with councils.

The plan will be completed before 30 June 2018.

Evaluate, over three years how well we are implementing the regional service plan by assessing performance against service goal measures.

Once the plan has been implemented we will start the evaluation process.

Capital works programme

An integral part of delivering the regional service plan is delivering the capital works programme. This involved working with our consultancy panel to achieve seamless and efficient delivery to enable better quality outcomes.

We are working towards organising ourselves into a more proactive cycle of working with our contractors. This requires better planning, change control, and agility to respond to new information as it becomes available, as well as good consultation with our client councils and other interdependent utilities. We will continue to look for opportunities to lift performance and improve relationships we have with suppliers.

Statement of Intent Measure


95% of all planned construction projects from client council annual plans are completed within timeframes agreed with councils.

Based on current performance we expect to meet this measure.

90% of all completed projects (from a 10% sample) met requirements of the project brief.

Based on current performance we expect to meet this measure.

Regional initiatives

One of the reasons for forming Wellington Water was to see where there could be benefits from taking a regional approach to solving an issue. We have identified four key areas where adopting a regional approach should benefit client councils:

·    Resilience for drinking water supply and wastewater;

·    Catchment management approach;

·    Urban growth and change; and

·    Climate change impact on three waters.

Resilience for drinking water supply and wastewater

Implementing our water supply resilience strategy “Towards 80-30-80” is well underway and is focused on a series of network improvement and community initiatives that will progressively improve the resilience of the water supply network over time.

Our priority is to build community awareness of need for households to have at least seven days of drinking water stored, and to work alongside critical customers and other utilities to achieve the same. Seven days storage is not only required for maintaining household viability, but is also needed to provide us with the necessary time to focus our efforts on priority repair work.

We have started investigations and design processes for projects that will deliver new water storage for Wellington CBD and Porirua; strategic stores; alternate bore water supplies as well as water filtration and treatment options. Water stations at community distribution hubs are being designed and the required landowner approvals and resource consents obtained.

We have engaged with our client councils to ensure resilience investments are understood, agreed and visible in their 2018-28 council long term plans.

Our community awareness activities have revolved around the Water Hero theme, the thrust of which is to raise public understanding of water and its use, and especially the need to store drinking water at home. Regular channels as well as social media have been used.

We also know that our wastewater network is equally vulnerable to a major shock. Our wastewater strategic case identified almost 80 per cent of the network is considered to be non-resilient. The strategic case identified more work was required to make communities more self-sufficient and that there was a need to work more closely with other utilities to improve recovery efforts.

Our approach for improving water supply and wastewater resilience is highly dependent on collaboration with local government, central government, suppliers and other utilities. This collaborative approach has seen us already working with central government to implement some of the personal resilience and network recovery initiatives identified for drinking water.

Statement of Intent Measure


Implement the water supply resilience strategy by implementing education and community programmes to raise awareness of the need for drinking water and wastewater self-sufficiency for at least the “first seven days” by June 2018.

Education and community programmes to raise public awareness of drinking water and wastewater self-sufficiency are well underway. We have continued to promote our Water Hero campaign through digital and traditional media.


Investigating, and if approved, implementing agreed initiatives (e.g. network alternatives and new water source, reservoirs and equipment projects) by June 2020.

The programme of investigations and potential projects and initiatives is being developed and some projects accelerated. Community Infrastructure Resilience is making substantial progress toward establishing emergency water sources and distribution within the ‘emergency islands’.

Complete a wastewater programme business case by June 2019

The draft wastewater resilience strategy has been completed and confirms the need for an operational response plan which will be started in the 3rd quarter 2017/18. The combination of these will inform whether we proceed to develop a programme business case in 2018/19.


Catchment management approach

We are adopting an integrated approach to planning, investment and management of activities to achieve better outcomes across all three waters in the region.

As we develop an integrated approach we will consider the direction set by National Policy Statements, utilise our operational knowledge of the networks and work with our stakeholders to share information and build capability to enable holistic investment decision making.

Our catchment approach will be influenced by Whaitua processes[3] in the region. The Te Awarua o Porirua Whaitua is underway, and the Wellington Harbour and Hutt Valley Whaitua is currently being formed. We will continue facilitating, providing information and advocating for three waters as part of the Whaitua process to achieve both aspirational and realistic outcomes for communities.

Statement of Intent Measure


An Integrated Catchment Management Plan (ICMP) is being developed by end of March 2018 for Lambton Harbour as part of the existing global stormwater consent held by Wellington City Council.

ICMP for Lambton Harbour is on track for delivery in March 2018. This plan will lead to clearer direction on the areas for further investment to improve water quality.

A global stormwater consent for all Councils will be in place by the end of 2017 calendar year, which will initially require a stormwater monitoring regime followed by the development of stormwater management strategies by all Councils.

We have been working with our key stakeholders to establish a global stormwater consent that will include a five year monitoring regime. The consenting process has been delayed due to a request for further information but is expected to be resolved by March 2018.

Climate change impact on three waters

We know that climate change is upon us with an increasing likelihood of frequent and intense rainfall and rising sea levels affecting stormwater networks and causing flooding in low lying areas.

We are working to plan proactively and regionally for this impact to ensure value for money and that our actions are in alignment with council growth strategies.

Statement of Intent Measure


Develop a strategic case to investigate effects of climate change on stormwater management by 30 June 2018.

A strategic case is no longer considered necessary as climate change is a key consideration in all our strategy and planning processes.  We continue to contribute to climate change work being led by our client councils, Local Government NZ, central government and the University of Victoria.

Urban growth and change

As well as the usual growth planning, the National Policy Statement for Urban Development Capacity requires councils to provide in their plans enough development capacity to ensure demand for development can be met. Development capacity includes the provision of adequate infrastructure to support the development of land. Our focus is on supporting the proposed changes and providing advice on infrastructure changes to meet growth strategies.

Statement of Intent Measure


A survey that tells us whether client councils are satisfied with our involvement in the early planning stages of growth and development changes, our contribution to spatial planning and ensuring increased alignment with their strategies for future growth

Survey to be completed in the second half of the 2017/18 year.


Our value for money system

We continue to display a culture of eliminating waste, continuously improving and introducing innovation. This has been demonstrated through rising registration of value for money initiatives from within Wellington Water and especially throughout our supply chain (e.g. consultants and contractors).

Statement of Intent Measure


A trend of increasing registration value for money ideas from within Wellington Water and throughout our supply chain.

The number of value for money ideas has continued to rise. At the end of December 2017, our value register has 428 ideas of which 137 are logged in the first half of the current financial year. This is a 27% increase from same time last year and 140% increase from the year before. The biggest contributors are our construction contractors.

An independent reviewer agrees that greater than 85% of our value for money ideas have actually generated value.

The valuation system and approach have been independently reviewed and concluded as sound in terms of the accuracy and reasonableness of calculations and assumptions made. We have continued with the same system and approach this year and will be conducting a light review towards the end of the year to make sure we are on track. 

Specific priority – service delivery strategy

One of the three themes that arose out of the “Shaping our Future” initiative was to develop a collaborative service delivery strategy that consolidates our approach to water services across the region. This strategy will encapsulate wastewater treatment plants, maintenance services, network upgrades and consulting services. The final strategy was completed by July 2017, with delivery commencing immediately and through the following three years.

The regional service delivery strategy will drive regional consistency and operational excellence, including developing a health and safety culture with our suppliers and promoting innovation and new technology opportunities. We will be looking for reliable delivery of the capital programme, fully utilising our new consulting panel and will review our in/out sourcing arrangements as we develop the strategy.

Statement of Intent Measure


Regional service delivery strategy completed and endorsed by 30 July 2017

Service Delivery Strategy was completed and implementation commenced prior to 30 July 2017.

Regional service delivery strategy implemented progressively through 2020, including wastewater delivery, operation and maintenance alliance; and contractor panel.

Alliance registration of Interest completed and three parties shortlisted to continue into the competitive dialogue stage. Contractor panel strawman model developed and sent out to interested parties for feedback.  Strategy for the single approach to treatment plant management is being developed and is in the information gathering stage at present.

Quarterly reporting against strategy milestones to the Senior Leadership Team.

Senior Leadership team are engaged in the consultation process and receiving regular reports on progress of all three streams.


Company result area 3: Working collaboratively

We work collaboratively with our customers, shareholders and key stakeholders at central, regional and local levels. Our goal is to be seen as a trusted adviser to councils, managing our relationships with our stakeholders will help us achieve that. 

Working collaboratively includes putting ourselves in the centre of all conversations with authenticity and a commitment to act.

Our priority initiative is to develop relationships with neighbouring councils to improve three waters service provision.

Trusted advisor to our shareholders

As a trusted advisor to our client councils it is essential we are transparent and responsive to their needs and expectations. We treat each client council as an individual, with specific conditions and needs that we must meet and where it makes sense introduce a regional perspective.

Statement of Intent Measure


Client council representatives judge us on an ongoing basis as being their trusted advisor

We continue to be judged as meeting the requirements of being a trusted advisor by our client councils’ representatives.

Central government

At the national level, there are a range of matters relating to water governance and management that we need to be involved in, including resilience.

Statement of Intent Measure


Work alongside central government to improve the resilience of the three waters infrastructure including providing advice to central government on three waters issues.

Collaborated with Ministry for the Environment on the implementation of the National Policy Statement for Urban Development; the development of National Planning Standards; and guidance on improving urban waterways.

Involve central government in our initiatives as appropriate e.g. climate change impact on three waters.

Worked closely with the Department of Internal Affairs (DIA) to ensure funding allocated in Budget 2017 is used to improve the regions resilience (i.e. drilling bores and installing bladders in communities).

Other stakeholders

We have worked with Local Government New Zealand on their Water 2050 Project including looking at funding options and continue to build our relationship with the Local Government Commission, by coordinating submissions on relevant topics.

We continue supporting Water New Zealand by participating in and leading national projects (i.e., the customer value project which conducted nationwide water research that has been published).

We have signed up a Memorandum of Partnership with local iwi through their Post Settlement Governance Entities – Port Nicholson Block Settlement Trust and Te Runanga o Toa Rangatira. We will continue to further develop these relationships through the Whaitua and other processes.

Statement of Intent Measure


Conduct an annual stakeholder survey by 1 April 2018 in consultation with client councils.

This is an annual measure and will be reported at year end.

Specific priority – neighbouring councils

We have already begun discussions with neighbouring councils in the wider Wellington region, including some Wairarapa councils, to explore how we can help them with asset management and data related services such as providing assistance in implementing metadata standards. We will consider how we could fund this in a sustainable way.


Statement of Intent Measure


Provide asset management and data related services to neighbouring councils, including implementation of metadata standards and sharing our knowledge.

We provided assistance to South Wairarapa on their asset data management and renewals planning project.


Operating frameworks

Key operational focus areas for the company include improving company systems, risk management, company performance through our results sheets process, completing special projects and setting up One Budget and securing funding certainty.

Company systems

We’ve continue to develop our systems. This includes implementing the Information Strategy that is focused on recording and maintaining accurate data, which is transformed to information to aid decision-making and is shared to support knowledge. Our focus has been on simplification of underlying business processes, the development of new, integrated systems to support our processes, and a rationalisation of applications currently used by employees. We have also implemented our Information Technology Strategy and are monitoring the development of technology-enabled smart services supporting three waters operations.

Risk management

Our risk management framework supports our company strategy and outcomes and aims to integrate risk management across all aspects of the company. We’ve invited all staff to engage in risk management, understand their role in risk processes, and influence and improve risk effectiveness. Our risk procedures require all groups to actively maintain their risk profiles and risk registers and to discuss risks, their treatment programmes, and to report on them on at a leadership level on at least a quarterly basis. Risk management and its effectiveness are discussed at the Senior Leadership Team quarterly performance meetings. We report risks quarterly to the Board Audit and Risk Committee and discuss treatment programmes to mitigate extreme risks at each meeting. Quarterly we report to the meeting of the client councils’ representatives’ on risks relating to the work programme and those we collectively share.

Company performance

Please refer to Appendix 2 for a summary of performance against our outcomes and service goals and to our website for performance against DIA measures. We continue to report performance to the Board, our five client councils’ and the Wellington Water Committee on a quarterly basis.

Special projects for 2017/18

To contribute to the company’s smooth operation, we will investigate with councils how we can effectively support consent activity, have increased access to warrants that our people need to do their jobs, undertake asset valuations, and continue the move towards regionally consistent three waters bylaws and policies.

One Budget and funding certainty

From 1 July 2017, we have implemented the One Budget concept for operational and capital funding for each council.  This consists of each council paying to Wellington Water the full allocated operating and capital budget for three waters in 12 monthly instalments. From this funding stream, we will optimise the costs between the company, consultants and contractors.  Once the 2018-28 LTP is approved by councils, we envisage fixing annual funding over a three year period, providing the company with more certainty.  We will be more explicit about risk pricing, our method for managing risks and any coverage individual councils need to be aware of.  In the case of capital projects, we will use the retiming of projects as the principle basis for managing scope and cost risk, but this will be done with the agreement of councils involved. Similarly, councils expect to be able to modify funding priorities in the event of emergencies or other significant events, this would be done in discussion with the company and in consideration of existing commitments and operational risks.

Appendix 1: 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.

We employ 205 staff and provide services to the customers of the metropolitan area of Wellington on behalf of our shareholders.

Each shareholding council owns its own water services assets (pipes, pump stations, reservoirs and treatment plants), and 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.

Wellington Water Committee

The Wellington Water Committee consists of representatives of each of the five shareholding councils.

The Committee provides governance oversight. The Committee writes an annual Letter of Expectations (LoE) to the Chair of the Board of Wellington Water, which outlines key priorities and areas of focus for the company.

Wellington Water Board of Directors

We are governed by a Board of independent directors. 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.

On 1 September 2017 the Wellington Water Committee agreed to appoint a new director and extend the term of others: Geoff Dangerfield was appointed as a director from 1 October 2017 for a term of three years. Board Chair John Strahl’s term expired on 31 December 2017 and David Wright has been appointed Chair from 1 January 2018. David Benham is appointed to 1 July 2018. Nicola Crauford’s term was extended to 31 December 2018. David Wright’s term was extended to 1 February 2020. Cynthia Brophy’s term was extended to 1 February 2021.

Attachment 1

Draft Half Year Report 2017


Appendix 2: Customer outcomes and goals



Appendix 3: Performance measures


Service Goal

Objective (KRA)



2017/18 Half year result


Safe and Healthy Water

We provide safe and healthy drinking water

Water is delivered to meet current NZ Drinking Water Standards and water supply legislation so that our ongoing activities prevent contamination of treated water.

Compliance with National Drinking Water Standards


Currently achieving for 2017/18 YTD



Water supplied is of acceptable quality to customers.

Number of customer complaints relating to:
·      clarity
·      taste
·      odour
·      pressure or flow
·      continuity of supply
·      responsiveness

<140/1000 connections (HCC, PCC, UHCC[4], WCC)
<5/1000 connections (GWRC)












We operate and manage assets that are safe for our suppliers, people and customers

Water services are delivered in a way that is safe for our suppliers, people and customers

LTI’s involving Wellington Water or its suppliers in activities associated with operation of council assets




Wellington Water measure

Asset safety risks are identified and improved

Number of assets identified for improvement as entered in the company's Health and Safety risk register

Trend only



Wellington Water measure

We provide an appropriate regional wide fire-fighting water supply to maintain public safety

Sufficient water is supplied to meet urban firefighting needs under normal conditions

Number of identified key hydrants that meet testing requirements (as defined in SNZ PAS 4509:2008)


Annual measure


All Clients

We identify and implement water supply improvements to assist the Fire Service

Number of asset improvements completed to improve firefighting service

1 per year

Annual measure


All Clients

We minimise public health risks associated with wastewater and stormwater

The public is protected from direct exposure to untreated wastewater onto land

Number of dry weather network blockages that result in discharge to land











The public is protected from direct exposure to untreated wastewater onto beaches

Percentage of days during the bathing season (from 1 November to 31 March) that the monitored beaches are suitable for recreational use

90% (HCC, PCC, WCC only)








Respectful of the environment

We manage the use of resources in a sustainable way

Our customers receive water services that are managed efficiently through minimising water loss

Gross average drinking water consumption (litres) per resident per day

335 l/p/d (PCC, UHCC)







345 l/p/d (HCC)




375 l/p/d (WCC)




Our customers receive water services that are managed efficiently through minimising energy consumption

Electricity  usage at pump stations and treatment plants - GJ/cum for water supply and wastewater

Set baseline

Results not yet available



Our customers receive water services that are managed efficiently through minimising production of treatment plant waste

Sludge disposed to land fill from water and wastewater treatment plants (t/ML and t/ML DS)

Set baseline

Results not yet available



We maintain or enhance the health of our waterways and the ocean

Water quality of the waterways and harbours is not adversely affected by discharges from any of the three waters networks

Percentage of monitored fresh water sites that have a rolling twelve month median value for E.coli (dry weather samples) that do not exceed 1000 cfu/100ml












Integrated catchment management plans are used in a collaborative approach with stakeholders to carry out improvements to  the water quality of waterways and harbours

Number of new water quality improvement projects initiated from ICMPs for the region

1 per year

Tracking towards annual target


All Clients

We influence people’s behaviour so they are respectful of the environment

Communities are educated to use our infrastructure in ways that reduce the impact on the natural environment in areas such as stormwater pollution and water conservation

Percentage of people surveyed who understood nominated education messages conveyed within same financial year


Tracking towards annual target


All Clients

We ensure the impact of water services is for the good of the natural and built environment

Water services are managed to comply with consents

Compliance with resource consents for the water supply, wastewater and stormwater activities (full compliance is no notices/convictions):

100% compliance (Zero notices)

Zero notices


All clients

Water services are built and managed in ways that are not intrusive to communities

Number of confirmed customer complaints relating to odour, noise and visual impacts for three waters

<5/1000 connections



All clients

Resilient networks support our economy

We minimise the impact of flooding on people’s lives and take into account climate change

Our operational response to flooding events satisfies customers’ expectations

Median response time to attend flooding event

60 mins (HCC, PCC, UHCC, WCC)










The potential impact of increased sea levels and flooding on property and key transport links from stormwater is identified and the impacts are minimised

Percentage of urban catchments covered by detailed hydraulic stormwater models.


45% (approx.)


All Clients

The impacts of an additional 1 m sea level rise are understood and preventive measures are implemented where practicable. Where prevention is not possible, the impacts will be managed operationally

We provide three waters networks that are resilient to shocks and stresses

The resumption of water services to customers is prioritised and managed appropriately

Percentage of customers with access to sufficient potable water for at least 7 days (using at least 3 l/person/d)[10]




All Clients

We plan to meet future growth and demand

The water supply network meets normal demand except where a drought is more severe than a 1-in-50 year return period event

The assessed reliability of the potable water network shall not exceed an annual shortfall probability of 2% (assessed using the Sustainable Yield Model).

Less than 2%

Annual target (last assessed < 2%)


All Clients

Water supply and wastewater services are planned to accommodate changes in demand and future growth, with a focus on reducing water wastage

Total volumetric deficit of water supply storage based on 2 days of storage at average daily demand


Not tracking well towards annual target as need to complete a number of upgrades.


All Clients

We provide reliable services to customers

Customers have access to reliable three water services

Median response time to fix Water Supply service outages

60 mins (attendance for urgent call outs)












4 hours (resolution of urgent call outs)












36 hours (attendance for non-urgent call outs)













15 days (resolution of non-urgent call outs)










0.5 hrs


Number of wastewater blockages reported (per KM of pipe)

Less than 1.2 per km












Attachment 1

Draft Half Year Report 2017


Appendix 4: Financial Statements









































* 31 December 2016 and 30 June 2017 have been restated for comparative purposes. Wellington Water extended its trusted advisor model to consolidate Council’s external three waters expenditure, resulting in an increase in council opex and capex programme recoveries. Previously, these recoveries were limited to consultancy and network maintenance service recoveries. All three water related expenditure managed on behalf of councils is now disclosed as "council opex programme or council capex programme”.
































































                                                                                      91                                                        01 March 2018

Wellington Water Committee

08 February 2018




File: (18/127)





Report no: WWC2018/1/10


Sustainable Water Supply





Purpose of Report

1.    This paper aims to engage the Committee in a discussion about Wellington Water Limited’s sustainable water supply study that is planning to start in Q4 2017/18.  The report sets out the challenge and how Wellington Water Limited intends to respond and involve the Committee going forward.



It is recommended that the Committee:

(i)    notes the report; and

(ii)   agrees to hold a workshop in April 2018 to discuss options for a sustainable water supply.


2.    Securing a sustainable water supply is one of the priority future service studies arising from the draft Three Waters Strategy.  Work on the strategic case was originally programmed to commence in 2018/19.  However, the very dry spring of 2017 led to a desire from the region’s political leaders to bring the work forward to the current year. 

3.   Appendix 1 (attached to the report) sets out our general approach to this work, which will be similar to the previous resilience work completed last year.  We intend to involve the Committee in this process as illustrated in Appendix 1.

4.   Based on current planning, the Wellington region will need a new source of water by 2040, additional bulk water storage, and associated treatment due to the effects of a growing population and climate change.  This is estimated to cost up to around $200 million, which has been signalled in Greater Wellington Regional Council’s 30 year Infrastructure Plan.

5.   Deferral of this investment has the potential to save the region around $2M per annum.  The range of potential interventions is broad, from advocating for policies and bylaws that enable more self-resilience in the region’s homes (eg rainwater harvesting and grey water re-use), demand management initiatives and development of a new source as currently planned.  Ultimately, the purpose of this work is to determine the best approach.

Background and context

6.   Whilst growth in per capita daily demand is relatively flat at 374 litres per person per day, the region’s population is growing and our ability to take more water out of our rivers and the aquifer is likely to be increasingly constrained through the Proposed Natural Resources Plan.  The effects of a changing climate will also test our drought resilience.

7.   Potential interventions could include targeting a reduction in demand at such a scale that investment in a new source, treatment and storage could be deferred.  If demand can be reduced to around 330 litres per person per day or less, the need for a new source and treatment could be deferred by 10 years.  This has a net present value of $2M for each year deferred.

8.    The Office of the Auditor General’s (OAG) proposed performance audit later this year follows their report in 2010 on how well territorial authorities were planning to meet the forecast demand for drinking water.  In that report, OAG found providing security of supply into the future to be the main challenge.  The proposed audit takes this further by “looking at how well territorial authorities are optimising supply and demand strategies before looking for further supplies of raw water.”[12]

9.    The findings and recommendations of the inquiry into the contamination of the Havelock North drinking water supply are expected to result in far stricter regulation of drinking water suppliers and elevated customer expectations may also influence our thinking going forward.

Wellington Water Committee Workshop

10.  Purpose of the Workshop

As previously discussed with the Committee, we intend to run a formal Committee workshop on the sustainable water supply.  The purpose of the workshop is to explore the issues and challenges for this work.  The attendees for the workshop will include the Wellington Water Board members, Wellington Water Committee members and Councillors from the five Councils.

11.  The information and insight from this first stage will inform the strategic case work (refer to Appendix 1 attached to the report).  

12.  In preparation for this workshop in Q4 2017/18, we anticipate having a broad discussion about what a sustainable drinking water supply for the region looks like over the next 20 to 80 years?  Some likely questions could include:

·   How can we demonstrate reasonable and efficient use of the region’s water resources?

·   What can we do in the short and long term to reduce the effects of our water takes on the region’s rivers and aquifers?

·   How should we prepare for stricter regulation around drinking water quality and elevated customer expectations?

·   How can we improve our customers’ understanding of how much water they use and encourage them to use it more efficiently?

·   How can we cater for possible impacts of climate change?







Future Service Study process:










Author: External Author (Wellington Water Ltd)




Attachment 1

Future Service Study process:


Future Service Study process:


We are Here




Strategic Case
Problem definition and summary of issues and challenges
Starts Q4 2017/18
,Programme Business Case (PBC)
A series of interventions and activities that will address the problem
Developed in 2018/19
,Regional Service Plan and LTP’s
Activities arising from the PBC stage included in Councils’ Long Term Plans (capex, opex, policies, community education etc)
,Water Committee workshop
Q4 2017/18
Water Committee approval of strategic case
Individual Council LTP process development in 2021/31


                                                                                      95                                                        01 March 2018

Wellington Water Committee

09 February 2018




File: (18/131)





Report no: WWC2018/1/11


Company Update Report





Purpose of Report

To give the Committee an update on issues associated with the performance of the company.



It is recommended that the Committee notes and receives Wellington Water Limited’s Company Update report.


Operational Update


Waterloo Water Treatment Plant Upgrade


The Waterloo Water Treatment Plant upgrade and associated pipeline to the Hutt River has been completed.  A small amount of work around the bores was completed after Christmas but overall the work was substantially complete before Christmas.


Thanks to Greater Wellington Regional Council for funding the additional scope and for Hutt City Council for facilitating the approvals necessary to construct the pipeline works through the Hutt Central Business District.  In the end the pipeline was completed well before Christmas meaning the potential disruption to Christmas shoppers was avoided.


Today all the drinking water supplied to the four cities of Wellington, Hutt, Porirua and Upper Hutt meets the multi barrier requirements of the Drinking Water Standards. Further, we have reviewed the “urgent and necessary” recommendations of the Havelock North Inquiry and we can assure the Wellington Water Committee no specific additional actions need to be taken in the short term.  It is our intention to deliver a new Regional Water Safety Plan by 30 June 2019 to replace individual Water Safety Pans for each council. We’ll also watch out for developing requirements for all Water Treatment operators to be certified and participate in development of a new Joint Working Group with Regional Public Health and Greater Wellington Regional Council. 


Storage Lakes Full Again


After a very dry lead up to Christmas we have had a good amount of rain since. This together with low demand over the holiday period means the Stuart Mackaskill lakes are full again.


Our model predicts we are able to withstand a 1:100 year drought over the next 3 months and still have reserves in the lakes by the time summer officially finishes in April. Accordingly, we have reduced our demand controls from a full sprinkler ban back to using sprinkler on alternate days.  We have supplemented this good news story with strong water conservation messages as demand must still be managed for us to maintain a sustainable supply.


Big Increase in Water Leaks


There has been a significant increase in water leaks over the last month.  As we understand it, soil shrinks in the very hot conditions which put additional stresses on the pipes.  If these pipes are weak, then these additional stresses will be enough to create a defect and the pipe will leak.


Additional leaks put pressures on our work crews to meet our standard response times for fixing the leaks and ensuring our customers receive continuous supply. An additional crew has been established and will work until the increased workload has cleared.


Harbour Bores Update


The second investigatory hole has been completed.  The barge and drill rig have returned to port.  We are now evaluating all the results from the bore and associated testing.  Results will be available in April 2018.


The aquifer is thicker at the new location and the gravels appear to be in better condition which is encouraging.  We will all be interested in the results when they are available.


Three Waters Strategy


Over the last 12 months we have been working on a Three Waters Strategy.  This document focuses on what we need to do to meet current and future levels of service.  It informs 30 year infrastructure strategies and is the first chapter of the Regional Services Plan.


A summary of the strategy is provided in Appendix 1 to the report.  One of the key outputs from the strategy is a list of studies we need to do to understand and mitigate future risk or change in providing 3 waters services to customers.  A list of these studies (called Future Service Strategies) is contained within the Statement of Intent.


The first Future Service Strategy to be progressed will be the “Sustainable Water Supply” strategy.  There is a report within the balance of the agenda which introduces this work and the process we will use to engage with you on this topic.


Customer at the heart of what we do


Following the Scottish Water visit we set our sights on a number of initiatives to lift our customer service.  One of these which was to explore a typical service request and look for improvements.  We used a typical Porirua City Council (PCC) service request as an example and have worked with the PCC Service Centre to review performance.  A number of improvements will now be undertaken to improve the level of service.


We do call backs to customers who have encountered council and Wellington Waters customer experience.  The results indicate our service has been excellent on the whole but our communication needs more work. It is always good to get this feedback so we can concentrate on improving what we do.


Next quarter you will receive our first customer report which will summarise performance in this key result area.


Company Performance


There is no material issue with respect to the company’s performance.  The Waterloo Water Treatment Plant upgrade works put a lot of pressure on the balance of our CAPEX programme but we have now got this back under control.


As usual we have provided the Three Waters and Health and Safety Dashboards as Appendix 2 and Appendix 3 to the report.  Feedback from Worksafe NZ is that a lot of companies’ critical risk reporting in the health and safety area is too generic and would be unlikely to mitigate a serious harm or potentially fatal injury.  The company has started reviewing all critical risks to improve our performance.  We have started with Traffic Management.








Three Waters Strategy WWC



Three Waters Dashboard



H and S Dashboard





Author: External Author (Wellington Water Ltd)





Attachment 1

Three Waters Strategy WWC


Appendix 1 Three Waters Strategy


1.    The purpose of this paper is to highlight that Wellington Water now has a Three Waters Strategy that has been endorsed by the Board.


2.    The Three Waters Strategy (the Strategy) identifies issues and challenges over the next 50 years and discusses how we intend to respond to those challenges, using a range of solutions.   A one page summary of the strategy is at the end of this paper. It is structured around our three customer outcomes and 12 service goals and forms the front end of the Regional Services Plan.

3.    Central to achieving the future state outlined in the Strategy will be a series of future service studies and associated business cases (see Table 1 below).  These studies are mentioned in our new Statement of Intent (SOI) and should be mostly complete within the next three years (subject to funding), in time to influence the next ten year Regional Service Plan and Long Term Plan (LTP).


4.    It is recommended that the Wellington Water Committee notes the Three Waters Strategy.

Key Themes

5.    The Strategy presents a range of challenges, such as climate change and urban growth, which will require us to think differently about future investment decisions.  Flexible and adaptive infrastructure solutions will become increasingly important.

6.    Pressure on natural resources and the need to reduce carbon emissions will direct us towards ‘fourth generation’ water infrastructure.  This type of infrastructure involves resource recovery, re-use and energy efficiency. 

7.    We need to think beyond infrastructure as providing a single purpose (e.g. drainage) towards multiple benefits.  Water sensitive urban design solutions’ for example, serve multiple benefits such as drainage, improving water quality, amenity, and so on.

8.    Affordability coupled with the future challenges outlined in the Strategy will require a combination of asset and non-asset solutions. Arguably, we are behind other Councils such as Auckland, Hamilton and Christchurch when it comes to planning controls that minimise the impacts of flooding and urban development.  Driving and influencing non-asset solutions will be an important part of our strategy over the next five years.  This includes influencing strategy, policy and bylaws and changes in behaviour that contribute to achieving our three outcomes.

Future service studies

9.    Table 1 below identifies the series of future service studies that will be key to the development of the 2021/31 service plan and form part of the company’s new SOI. Subject to funding availability, the majority of this work will start in 2018/19. It should be noted that the sustainable water supply strategic case has been brought forward into this financial year and is expected to be completed by July 2018.

Table 1: Priority future service studies and business cases

Focus area



Sustainable water supply

To address the requirement for a new water source within the next 30 years currently included in GWRC’s service plan.

Previously referred to as the ‘water demand management’ strategic case. Following a Wellington Water Committee request, we are intending to complete a strategic case by the end of June 2018 followed by a programme business case in 2018/19.

Wastewater overflow reduction

To address the wastewater overflow issues across the region and target their reduction in line with our environmental goals and GWRC’s Proposed Natural Resources Plan.

Strategic case followed by a programme business case.

Stormwater - Quality

To address the quality of stormwater and target improvements in line with our environmental goals and GWRC’s Proposed Natural Resources Plan.

Strategic case followed by a programme business case. This work will need to be closely aligned with the wastewater overflow reduction work and the stormwater flooding study below.

Stormwater - Flooding

To address the flooding risk to properties and other infrastructure across the region in line with our resilience outcome.

The stormwater modelling programme will be complete within the next three years and will provide the evidence required to justify and prioritise investment.

Sludge management

To address the sludge management challenge and impact on landfill waste operations as the region’s population grows. This work aligns well with WCC’s resilience strategy.

Strategic case followed by programme business case.

Supporting growth

National Policy Statement – Urban Development Capacity (NPS-UDC) requires councils to understand likely growth scenarios and plan for necessary infrastructure. This work will consolidate our forward planning task at a catchment level to ensure that we are aligning the regional service plan and LTP’s with anticipated growth.

This work is likely to extend over two SOI periods (6 years).

Resilient networks

This work will consolidate all our resilience planning in terms of capex investment, operational planning improvements and self-sufficiency targets for residential and critical customers.

We have made good progress in the water supply area and started improvements to address the wastewater challenges.

Smart Services

This work will provide the strategic direction for our network controls unification and Internet of Things (IoT) plan to enable smarter monitoring of the three waters network.


Carbon reduction

This study will establish a methodology for measuring carbon footprint and will identify those areas of focus, which will drive activities in the service plan. This work aligns well with central government policy direction and WCC’s carbon neutral aspirations.


Next Steps

10.  We have been working with the Regional Policy Managers Group from councils and other stakeholders no the draft strategy and will be bringing it to Client Council representatives meeting late February for endorsement.

Attachment 2

Three Waters Dashboard


Attachment 3

H and S Dashboard


MEMORANDUM                                                 105                                                       01 March 2018

Our Reference          18/128

TO:                      Chair and Members

Wellington Water Committee

FROM:                Kathryn Stannard

DATE:                09 February 2018

SUBJECT:           Draft Water Quality Framework Report



That the Committee receives and notes the draft report on the Water Quality Framework attached as Appendix 1 to the memorandum.


Purpose of Memorandum

1.    For the Committee to note the draft report prepared by Allen + Clarke, consultants for Local Government New Zealand.


2.    A review of the framework for water quality was undertaken in 2017 to identify how each piece contributes to an overall framework for water quality.  The consultant’s review of the framework included examination of relevant legislation, regulation and key supporting guidance.


3.    A Water Quality Workstream Reference Group, made up of local government stakeholders, was created to provide input into our review and to assist with the identification of key issues for local authorities, and better understand how local authorities experience working within the framework for water quality.  This included identifying gaps and key challenges facing local government.

4.    Following the consultants’ review of the framework for water quality, three key issues were identified with how the individual pieces within the framework work with each other to form a cohesive framework for managing water quality in New Zealand.  These three issues, which are discussed in detail in Appendix 1 attached to the memorandum, are:

·      Limited understanding of cost to local authorities due to lack of end-to-end analysis;

·      Incoherent framework due to lack of alignment between competing goals and responsibilities; and

·      Inconsistent and inefficient collection and use of water quality data due to lack of coherency in the framework.









Allen + Clarke - LGNZ - Water Quality Framework Report DRAFT for RG RELEASE 05.02.2018 (002)




Author: Kathryn Stannard

Divisional Manager, Democratic Services







Approved By: David Bassett

Deputy Mayor, Hutt City Council

Chair Wellington Water Committee




Attachment 1

Allen + Clarke - LGNZ - Water Quality Framework Report DRAFT for RG RELEASE 05.02.2018 (002)

























[1] LTIFR Lost Time Injury Frequency Rate. The number of lost time injuries per 200,000hrs worked.

[2] TRIFR Total Recordable Injury Frequency Rate. Total of all injuries per 200,000hrs worked incl. First Aid and return to work/rehabilitation cases.

[3] Whaitua means a designated space or catchment. Greater Wellington Regional Council is working closely with communities to manage land and water through Whaitua Committees.

[4] UHCC is Upper Hutt City Council.

[5] Two Lost Time Injuries (LTI’s) occurred in the first quarter and one LTI in the second quarter of 2017-18. We are in the process of reviewing the latest incident and expect the learnings to show that there are process, behavioural and cultural learnings to discuss.

[6] Hutt City Council (HCC) had one dry weather network overflow in the second quarter (October 2017) due to a local wastewater main blockage. There have been eight dry weather network overflows in WCC; five due to blockages, two due to faults in the rising main and one due to a broken air valve releasing sewerage from the rising main. All of these have been investigated and fixed.

[7] An extended dry period during quarter two has resulted in higher than normal water consumption for this time of year across the region as outdoor and peak usage has increased. Watering restrictions have been triggered much earlier than usual and we will continue to monitor and manage demand throughout the summer.

[8] Year to date average drinking water consumption for HCC is higher than the normal, following a trend in the city since April 2017. Information to date indicates that the issue is mainly related to widespread leakage in both public and private networks. The leak detection / maintenance contractors are working across the city finding the leaks and fixing them. Water restrictions are now in place due to higher summer demand and conservation promotion is underway.

[9] This measure indicates that there may be faults and limitations in the wastewater network which are impacting water quality.  Investigations are continuing in a number of catchments to identify public and private network issues.  Findings are being used to inform the wastewater master plan and future works programmes.  Improvement of water quality outcomes will depend in part on the implementation of such works.

[10] As a result of further work since the last Statement of Intent was written we have revised the target top 20 litres per person per day. The half year result reflects progress against this new target. The 3% result was from Colmar Bunton survey July 2017 and 10.4% was from Facebook survey 17 Jan 2018.

[11] The result at half year shows we have a long way to go to achieve the target of 80% by year end. A more formal Colmar Bunton poll will be conducted for year end to obtain a clearer picture on where this measure stands.

[12] Office of Auditor General, Proposal for a performance audit on optimising demand and supply of drinking water, Memorandum to OAG Leadership Team Meeting, 5 February 2018