Upper Hutt City Council Feedback

Stakeholder comment

WWL Response

Change to DRAFT

1

It is noted that WWL is a council controlled organisation under the Local Government Act 2002 and as such there appears to be confusion between the role of the Water Committee and that of the shareholders (councils). Council is of the view that it hasn’t delegated powers its powers as a shareholder to the Water Committee and as such is concerned that obligations and commitments entered into between the Water Committee and WWL may be perceived as binding on Council.

The Terms of Reference in the Shareholders’ Agreement set out specific responsibilities of the joint committee of councils (the Water Committee).  These constitute delegations. The Water Committee provide guidance/feedback on regional issues – not decisions relating to a council’s specific assets.

No change to content.

2

The tone of the draft SOI doesn’t reflect that the role of WWL as a council controlled organisation is for delivering water services on behalf of its stakeholder councils. At a principled level, the role of WWL and the purpose of the SOI is to ensure that the strategic direction of UHCC is “given effect” too. The repetitious use of the phase “our customers” is ambiguous and needs to be very clear that ultimately the relationship with the customer/community is owned by the “client council”. This message below which was upfront in the 2018 Statement of Intent has been dropped from the draft.

The SOI is intentionally customer focused although further wording can be added to clarify WWL’s relationship to its client-councils.

The “Our customers” wording from the previous version can be re-added.

The circle diagram from the previous version can be re-added.

Amend Paragraph 3 / Page 4 to read:

We provide drinking water, wastewater, and stormwater services on behalf of our client councils – Hutt City, Porirua City, Upper Hutt City, Wellington City, and Greater Wellington Regional Councils. Our vision is to create excellence in regional water services so that communities prosper. Our customers, the residents of the Wellington region, use the services we provide in their homes, businesses, and communities every day. Reliable and affordable access to these services supports the social fabric of our communities.

Include wording (within circle on Page 4):

We provide drinking water, wastewater, and stormwater services on behalf of our client councils – Hutt City, Porirua City, Upper Hutt City, Wellington City, and Greater Wellington Regional Councils.

3

The draft SOI shows WWL taking a strategic lead on a number of three water related issues. It is unclear how this reflects the direction of the UHCC when councillors have not debated many of these issues or formed a collective view on them. Ultimately, this strategic direction is likely to direct how Councillors prioritise future investment choices. This potentially takes the role of “trusted adviser” into an area which undermines the representative democratic foundation of local government.

Any issue that involves an investment choice is taken to councillors. WWL continues to work within the three year LTP funding envelope.

WWL undertakes work such as feasibility studies to prepare the advice it takes to council. The company’s intention is to facilitate a prioritisation discussion for each council’s LTP.

No change to content.

4

Similarly WWL seek to expand their mandate to engage directly with community and iwi. This extends to forming relationships, which intrude, into the governance space which is more normally the domain of elected and politically accountable representatives. Indeed the Local Government Act views this responsibility of such importance that it is a specific requirement for Councils to consult and it can’t delegate this function to other parties.

WWL engages with mana whenua on specific capital expenditure projects and the customer panel on broad issues, mainly awareness campaigns. The intent is to ensure that WWL’s trusted advisor advice is well informed by these perspectives before going to elected members.

This does not supplant the obligations councillors have to engage/ consult with its communities under the LGA.  

No change to content.

5

The draft SOI is predicated upon being a single document with measures to address the multiple and divergent needs of the client councils (shareholders). Whilst this adds value in some areas, it creates an overall blandness, which does not capture council/community specific nuances or requirements. One of the consequences is that there are a significant number of performance measures, some of which are of questionable relevance to all councils. Another example is the use of the Wellington City marketing slogan (P4 “you can’t beat Wellington on a Good day”). It is unclear why this is relevant to all shareholder councils.

The slogan does not belong to Wellington City Council but will be removed.

WWL takes a regional standardised approach wherever possible to ensure it works in the most effective and efficient way.

It is considered that developing performance measures that are specific to each council would go against the purpose for which WWL was created.

It is unclear which measures don’t apply to UHCC apart from the target to monitor the beaches.

A note could be added to the performance measure in future if it doesn’t apply to a council if this is considered necessary. 

WWL believes standardised, mandatory measures are most likely the way of the future.

Amend wording Paragraph 1 / Page 4 to read:

The Wellington region is the perfect balance of urban culture and the great outdoors. We’re also a growing region.

6

The draft SOI (bottom page 4) refers to creating an enduring Statement of Intent. However Schedule 8 of the Local Government Act 2002 very clearly references the SOI process as being done on an annual basis. Does this statement suggest a different process and if so how does this align with the statutory basis of WWL and the production of an SOI?

The current legislation requires CCOs to publish an SOI on an annual basis – this is being done.

What ‘enduring’ means in this context is that an extra effort will be made every three years around formatting, telling the story and reviewing the performance measures from first principles. As it is creating confusion, the word ‘enduring’ can be removed.  Otherwise the aim is to ‘tweak’ the SOI in years two and three. This is to ensure alignment with client councils’ LTPs and reduce resources in producing the SOI.

Some wording can be added to explain this.

Amend wording Paragraph 9 / Page 4 to read:

In developing Our water, Our Future we’ve created a Statement of Intent with clear targets and measures for a rolling three-year period. We’ve aligned our Statement of Intent with our client councils’ 2018 Long-term Plans, and we’ll review this annually in accordance with Local Government Act 2002 requirements.

7

UHCC is struggling with the concept of an “enduring” SOI, of which the current iteration is developed out of sequence with the Long Term Plan and with no clarity of what the cost implications for its adoption are. One year into the current 3 year funding programme and already WWL are signalling the need for funding in excess of that allowed for in the LTP. Add to this the uncertainty that adopting the draft SOI would bring and the situation becomes untenable.

The SOI changes ensure WWL’s work programme (capital and operational expenditure) fit within the LTP funding envelope, although new timeframes for delivery may be negotiated.  No additional funds beyond the LTP budget are being requested. Where the cost of a major project has increased, the changes go through the annual plan process. 

Add wording to Page 15 (following Paragraph 9):

Because we work in alignment with our client councils Long-term Plans we must keep within the agreed funding envelope. This means if changes such as a tight labour market or increasing construction costs occur we will work closely with our client councils to review planned work programmes and their scheduled delivery dates.

Amend wording to Page 24 / Paragraph 3:

We’ll deliver on what we set out to do by completing capex projects that meet the requirements of the project design brief, on time and within the agreed funding envelope as set by our client councils’ Long-term Plans.

We'll proactively manage a tighter labour market or increasing construction costs by anticipating changes in the market and using innovative procurement strategies to get the best value for money.

8

Page 7 of the draft SOI refers to the cost of water and value for money. For ratepayers and commercial users in Upper Hutt the cost is already well understood with each of the 3 waters rated for separately. Those costs are inclusive of administration, bulk charges and WWL costs. Whether this represents value for money is a much more complex issue to determine as each service is a monopoly with unique constraints. It is unclear what greater transparency WWL is intending to provide.

The total cost of water work intends to provide greater transparency in relation to Councils’ investment priorities and decisions and how these will impact future levels of service and cost of service.

Amend and add wording Paragraph 13 / Page 7:

Many customers want more information about how their money is being spent and what value they are receiving. We have agreed with our client councils to calculate the cost of water as a cost per connection. This work will provide greater transparency in relation to our client councils’ investment priorities, decisions, and how these will impact future levels of service and cost of service.

9

At the heart of the customer promise is the delivery of the agreed level of service (price, availability, quality). Recent experience would suggest that WWL needs to concentrate on getting these basics correct before focussing on other matters. Clearly second guessing proposed Government changes to the structure of water service delivery has been in part a distraction from core business.

WWL is starting to develop its advice for each client councils’ LTP. The intent is to take each client council’s elected members on a journey of prioritising their issues and setting levels of service. The first workshops have occurred.

WWL consider part of being a trusted advisor is to ensure that the advice it is providing takes into account the wider public policy developments such as the three waters review.

No change to content.

10

One of the key measures lacking which UHCC would like to see is in relation to network deficiencies. It is important to understand and address water loss and infiltration as part of prudent asset stewardship and an essential component of demand management. UHCC is of the view that it is a big ask of consumers to restrict demand/economise use when network losses are not fully understood nor well managed when they become obvious.

There is insufficient metering in the network to be able to calculate network losses on an accurate basis. Losses are currently inferred from available data, which includes a very limited amount of customer metering. The company is currently undertaking some work under the Sustainable Water Supply Future Service Study that is looking at operational leakage management and representative metering, and the outcomes of this work might include potential measures (and investment).

SOI measure 5: gross production will be reduced through both customers reducing supply and through reduced leakage/losses.

No change to content.

11

As alluded to above cost is very much a major concern. Not only are we seeing cost increases for major projects, renewals and new works but overhead and operational costs continue to rise. In an annual statement of intent is it not unreasonable to have expected to see how WWL intended to respond this in an integrated way rather than diluting it across the draft SOI.

WWL has recently secured a high level of capability to support the big projects. This has allowed for a thorough review of the major capital expenditure projects including ensuring the justification for the project is sound from first principles, reviewing the cost estimates and ensuring the option selection is robust.

Some further wording will be added to explain how WWL is proactively responding to the challenges within the construction market.

Wording has been included to Page 15 (see comment 7 above).

Add wording to Paragraph 1 /  Page 15:

We will work with our Consultancy Panel to improve efficiency by reducing costs and will work to lift our internal capability.

Because of the tight labour market and construction costs increasing we’ll review all of our major capital expenditure projects to confirm our options selection process and project justifications are sound.

Measures 28,29 and 30 have been updated to reflect this

12

Promise to our Customers

Measure 5. The objective of demand management through customer choice needs to be off set with objective reductions in network loses. See point 10 above.

Measure 8. The targets for reduction in flooding are laudable but there is no indication of where that will occur, what will happen and at what cost.

Measures 13 & 14. It isn’t clear how these will be measured and what they will be benchmarked against. Perception is one thing but reality may be different.

Measure 5:

It is not possible for WWL to measure and manage leakage/water loss with any degree of accuracy without customer metering. Leakage = gross supply minus demand, and at the moment WWL is only metering gross supply and about 25% of net demand (I.e. commercial customers). Metering could add benefits of identifying leaks in the customer network and helping customers understand (and then manage) consumption. WWL is happy to explore the deployment of meters for residential customers.

Also, with the current measure of gross demand, actions that WWL takes on leakage will contribute to achieving the target.

WWL is pursuing work on operational leakage management and network pressure management as part of the Sustainable Water Supply Future Service Study.

Measure 8:

Our modelling and smart investment process will be used to select optimal investment for flood management (subject to funding)

Measures 13 & 14:

Some wording can be added to identify how they will be measured.

Benchmarking is not currently happening, although Central Government is likely to undertake benchmarking at some point.

Measure 5 – no change to content.

Measure 8 – no change to content.

Measure 13/14 – will be measured through our customer perceptions survey – add wording Page 7 Paragraph 14/15:

To help us communicate effectively we’ll survey our customers on a regular basis to better understand their current knowledge and perceptions about the services we provide.

13

Delivering upon our promise to customers

Measure 16. The broad based Future Service Studies are good but the outcome will likely be a series of unfunded expectations. To what extent does this process predetermine future expenditure and how do the “client councils” link into the “smart investment “process?

As mentioned above, WWL would like the opportunity to facilitate a prioritisation discussion whereby councillors consider levels of service, cost implications and trade-offs for their water services. The results of the Future Service Studies will provide options for councillors to consider in addressing the issues that councillors consider to be a priority.

No change to content.

14

Responding to growth

Measure 17. Understanding network constraints is important to planning for growth. The cost and timing of interventions is reflected in each council’s long term plan via the “30 Year Infrastructure Strategy”. Clearly the understanding of network constraints and council ability to capture and respond to them will be iterative. At present the location of growth cells and priority for analysis is not clear.

Measure 19. It isn’t clear what is being measured. WWL merely act as an advisory stream to councils in the assessment and processing of consents. These are statutory processes and satisfaction with “advice and services” offered is not a measure of the effectiveness or efficiency of that contribution. Similarly development requires more input than the 3 waters and the primary relationship is therefore between the council as consenting authority and the developer.

Measure 17

The NPS-UDC requires councils to identify where growth might occur and to provide for that, and then WWL can look to enable that through the networks. We will continue to work through this process with our councils

WWL will be able to report back on progress in the annual report.

Measure 19

The measure is intended to measure WWL’s role, not the complete engagement.

No change to content.

15

Operate, maintain and renew

May be the area to include performance measures related to network integrity.

‘Network integrity’, or rather the outcomes of network integrity, are intended to be captured in measures 1-9. It is unclear what aspects of network integrity are missing.

No change to content.

16

Improving our services

Measure 27. The objective of improving efficiency by reducing fees costs is admirable but by targeting only this portion of total cost ignores other potentially more significant drivers of cost – for example an overheated local construction market and the impact that this is having on project costs.

This measure reflects WWL’s determination to drive down cost where it can.  There are a number of new procurement strategies underway to reduce costs.

Non-controllable factors affecting WWL’s performance will be explained in the annual report. 

No change to content.

17

Ready to respond in emergencies

Measure 31. The focus response on customers omits the crucial role that “client councils” have in both service continuity and responding to emergency situations. It is the perception of UHCC that WWL deliver services to the community in emergency and non-emergency situations on their behalf and so therefore need to understand the issues that arise in this process.

This measures WWL’s contribution to responding to emergencies. Some wording can be added to say WWL works with its client councils.

Add wording to Paragraph 3 / Page 17:

During emergencies we work closely with our client councils.

Add wording to Paragraph 4 / Page 17:

Each emergency will result in customer queries directly with us and with our client councils’ call centres. We’ll maintain an accurate record of all issues that occur and work through them with our client councils and customers until they are resolved.

18

Growing our capability

Measure 36. This measure focuses on gender equity and yet the main body of text refers to workforce diversity. Whilst gender equity is very important other measures are needed to reflect the broader issues of workforce diversity. Foer example these could be referenced to recruitment processes, work time flexibility and/or ethnicity.

Gender equity is WWL’s current focus but some wording can be added to refer to the broader initiatives underway.

Add wording following Paragraph 15 / Page 20:

We have a number of initiatives that underpin our diversity measure including pay equity, encouraging flexible working arrangements, revamping our careers page, and making sure all interview panels are mixed gender.

We’ll also focus on embedding a Te Ao Māori world view and cultural framework into the way we work.

Add wording to Paragraph 6 / Page 4:

Understanding and incorporating this concept into the way we work as an organisation, the delivery of our services, and our three customer outcomes.

19

We’ll work collaboratively with customers and iwi

Measure 37. What is the “trusted advisor” rating and how will this be measured? Trust has to be built and “earned“through actions and behaviours, rather than an assertion. Also “trusted advisor” status doesn’t imply an exclusivity of advice. Dependent upon the complexity of the issue and how it integrates with the broader strategic direction of council WWL will at any point in time sit at varying locations along the spectrum from service provider to trusted adviser.

Measure 39. The customer service panel is one input into determining the level of service which is ultimately set by the client council and what its community is prepared to fund. The wording implies a greater level of ability to influence than exists in reality.

Measure 37:

A footnote will be added to explain how the rating is measured.

Measure 39:

This is a subjective measure capturing whether the customer panel consider it worthwhile participating. Their participation assists in testing how WWL communicates its issues and story. This measure will be looked at going forward.

Add new wording to Paragraph 2 / Page 22:

‘Each quarter we meet with our client council representatives. They provide us with feedback and a trusted advisor rating, which we use to make sure our relationships stay on track.’

Measure 39 – no change to wording.

20

Creating highest value-for-money services

Within the context statement is reference to preparing a business plan for the adoption of an “enterprise way of working” estimated to cost $6m to implement.

None of this is captured in the performance measures listed and UHCC would strongly advise that if this path were to be followed then WWL needs to be cognisant of the fact that it is a creature of local government and that brings limitations on decision-making and accountability.

Measure 44. The sentiment behind the concept of delivery of two “smart services ideas” per year is laudable but doesn’t form part of an SOI.

The reference to preparing a business plan was a leftover from previous years and will be deleted.

Measure 44

The SOI also serves as WWL’s business plan so as to engage its organisation around planning.

A number of the measures take a more output activity based approach. As the company gains maturity in these areas of business, these output measures will be rolled up into broader outcome measures.

The SOI could be made into a pure accountability document but the view is that it is more meaningful to the client councils as they get a greater sense of the company’s work programme.

Remove wording Paragraph 7 / Page 24:

‘We’ll prepare a business case for our client councils promoting the value of adopting an ‘enterprise way of working’, which we would then like funded.

This would require additional capital from our councils (roughly valued at $6 million), which will be difficult to obtain.’

Measure 44 – no change to content.

Wellington City Council Feedback

Stakeholder comment

WWL Response

Change to DRAFT

21

WCC would like to see a measure and target for Unaccounted water (network losses).

There is insufficient metering in the network to be able to calculate network losses on an accurate basis. Losses are currently inferred from available data which includes a very limited amount of customer metering. WWL is currently undertaking some work under the Sustainable Water Supply Future Service Study that is looking at operational leakage management and representative metering, and the outcomes of this work might include potential measures (and investment). SOI measure 5: gross production will be reduced through both customers reducing supply and through reduced leakage/losses.

Addressed above point 12.

22

WCC would like to see Measure 6  expanded to include “no swim notices” in the harbours.

GWRC perform recerational swimming monitoring during the bathing season (Nov-April). WWL conducts stormwater water quality monitoring as part of its consents. If there is an overflow or issue WWL will work with Regional Public Health and GWRC to agree next steps based on the public health risks.

No change to wording.

23

Is this a request for additional funding in 2019/2020, or is it an internal allocation matter?  Is there and overlap between GWRC role in flood management?  Can you please advise what role Water Commitee and Client Councils play in the “smart investment process”. Measure 16

The words “(subject to funding)” will be removed from under “complete flood and flood management study” in this measure. This is an internal budget allocation matter, and sufficient budget will be allocated to complete this project in 2019/20.

GWRC has defined roles in relation to flood management for rivers. Making sure that roles and responsibilities are clear is likely to be something looked at in the study.

The smart investment process involves the identification of projects that will deliver the maximum benefit in relation to the service goals. The Water Committee is unlikely to have a material role in this process (beyond its role in endorsing those goals and the outcomes of the Future Service Studies). The Client Councils will influence the process through establishing the relative priority of the service goals and their investment weighting (i.e. they might decide, for example, to prioritise resilience).

 Remove wording Measure 16:

 ‘… (subject to funding)…’

24

Why is this only focussed on simple projects ?  If we add 15% consultant fee to the 11% WWL Capex management fee we are at 26%.  How does this benchmark across the industry ? Measure 27

WWL’s management fee (11 per cent for WCC) is based on the value of capital works per city. Over time this will reduce as the scale of projects increases. The management fee is comparable to what a client council would pay to have internal resources. It can’t be benchmarked as it’s not possible to know what WCC’s internal costs would be.

No change to wording.

25

Current WCC Annual Plan has committed to reviewing the Kilbirnie pump station.  We would appreciate the SoI noting this. Measure 28

Because construction costs have increased significantly over the last 12 months WWL is reviewing all of its major projects to confirm that project justifications are sound.

Addressed above point 11.

26

Moe-i –te Ra also under review. Measure 30

SAME AS ABOVE

Addressed above point 11.

27

Green infrastructure – no mention in the document.  Wellington Water needs to work with WCC at least on a strategy, anticpating there will be no major kickback on this in our First to Zero Plan – Te Atakura.  I would personally like to see Wellington Water start to really focus more on green rather than grey infrastructure but this is something that needs to be discussed at a more strategic level than this SoI allows.   Throughout document

 “Infrastructure” can mean ‘green’ or ‘grey’. “Green” infrastructure is definitely a key part of WWL’s thinking – see the reference to “water-sensitive urban design” (which is the same thing as green infrastructure) under ‘improving our services’ on p15. It is also covered off (more appropriately) in the Three Waters Strategy and will get more emphasis in that document when it is reviewed (in progress).

Include wording to Paragraph 5 / Page 15:

… including water-sensitive urban design (green infrastructure) guidance…

28

Kilbirnie Stage 2 and Bell Road as above. Measure 30

SAME AS ABOVE (re costs)

Addressed above point 11.

29

Looking after our water now and for the future

Pg4 Says you can’t beat Wellington on a Good day, this is a Wellington city slogan only, think WWL need to find something else given this is a regional document. Introduction

This is not a WCC slogan but the wording can be amended.

Addressed above point 5.

30

Looking after our water now and for the future

Climate change needs to be mentioned in this introductory page Pg 4 as a key threat opportunity and challenge. Introduction

Content to be included referencing climate change.

Added wording to Paragraph 6 /Page 4

“... this will be particularly important as we face the challenges of climate change.”

Amended Page 6 Paragraph 13

Climate change is impacting our region and we know it's having an effect on the performance of our stormwater and wastewater networks. We'll work closely with our client councils to consider how we plan for and address these impacts, especially sea level rise and flooding. We'll use the modelling and evidence we collect to inform and advise our client councils.

Climate change will result in increasing rainfall intensity…

31

Our promise to our customers

UN Sustainable Development Goals, goal 6 mentioned, what about the others? Pg 6  Sustainable cities and communities is relevant as is responsible consumption, climate action, life below water, life on land etc. 

There are two references to UN goals that helps to put the ‘safe and healthy water’ outcome into a global context. WWL has not adopted the Sustainable Development Goals or sought to align to them at this stage. This will be reviewed at the time of WWL’s broader strategic framework is reviewed.

No change to content.

32

Our promise to our customers

Quality of aquifer in the harbour Pg 6  Not mentioned, other water sources are praised for their quality.  I understand there was some challenges here. 

The acquifer contains high quality water, and this is why it is referred to as a taonga. As the water gets further out into the harbour it becomes more brackish as it comes up against sea water (which is why WWL didn’t proceed with the harbour bores).

No change to content.

33

Our promise to our customers

Climate change solutions Pg 6 – not adequate to just talk about working with other infrastructure providers to minimise flooding and predictivative rainfall technology.  This would be a good place to talk about the need for green infrastructure.   

Any solution to climate change will be site dependent and could involve a range of solutions. The need to work with other providers – especially the councils as road owners – is probably the most critical aspect of all. Integrated solutions are needed. For example, where the road provides part of the stormwater solution (and doesn’t just act as a big funnel).

No change to content

34

Cost increases as a key challenge – not mentioned, needs to be threaded througout the document.  This is a serious issue for Wellington city where there have been signifcant cost increases on a few key projects.  How will WWL respond to this? Throughout document

WWL has produced papers for its Board and Client Council Representatives explaining why cost estimates have increased and the actions that will be taken as a result. These actions include reviewing project costs and ensuring the options selection process is robust.

Addressed above point 11.

35

Concentrate on the basics – as above, this needs to be focused on rather than what the Government might or might not be doing. 

In acting as a trusted advisor and preparing its advice, WWL considers it prudent to take into account emerging public policy developments.

No change to content.

36

Protection from flooding issues Pg 12  – needs to be a full strategy, this is a very big issue obviously.   Measure 16

WWL agrees this is a big issue and it will engage closely with Councils, especially in relation to regions impacted by sea level rise.

No change to content.

37

Pg 9 how will we measure the understanding that the public are getting value for money? Measure 13

WWL measures this through its customer perceptions survey.

Addressed above in point 12.

38

Pg 9 can you be faster on implementing carbon reduction plan? Measure 15

This measure can be revised and the date brought forward.

Addressed in Point 48.

39

Pg 11 why are we still talking about life of assets as being 30-100 years?   Some should last longer. 

This is a range. WWL arent able to valadate the life expetancy of assets past 100 years. There are many variables: type of asset, location, use, etc.

No change to content.

40

Gender equity – removing barriers Pg 21  Quite an old fashioned approach to gender issues.  I would like to know what is planned on such issues as flexible working hours etc as well as proactive recruitment.  Also, would be good to see a greater Maori workforce. Measure 36

WWL has a number of initiatives that underpin its diversity measure including pay equity, encouraging flexible working arrangements, all interview panels have a mixed gender and the careers page is being revamped to be more inclusive.

WWL’s focus is on embedding a Maori world view into the way WWL and its suppliers work which will help encourage a more diverse work force.

Addressed above in point 18.

41

How are we going to meet the aims of the Zero Carbon Act Pg 37 when passed?  Needs some thinking

The work WWL is doing on carbon emissions reduction reflects the pathway set-out in the MfE consultation on the Zero Carbon Bill.

No change to content.

42

How does the CAPEX programme deal with cost increases in the market?  Pg 24  Needs a note here as well as more analysis earlier in the document. 

WWL has brought in new internal capability and expertise to help it manage the capital expenditure programme. It works within a three year Long-term Plan funding envelope. This means that when costs increase it will work closely with its client councils to review work programmes and their scheduled delivery dates

Addressed above point 11.

Other amendments

43

Senior Leadership Team and Board photos will be updated.

Page 28/29:

Replace Chris Mathews with Kevin Locke

Gary Replacement TBC

Confirm Board members

44

Strengthen health and safety measures 34/35.

WWL will be focussing on two critical risks per year and wellness.

Replace Measure 34  Page 21 with the following:

We will understand employee wellness by developing and running a quarterly wellness survey that measures awareness, participation, and satisfaction with our wellness initiatives

Y1/Y2/Y3 percentage of our people aware, participate, and are satisfied with our wellness initiatives increases year on year

Replace Measure 35 Page 31 with the following:

We will improve the health and safety of our people by reviewing two health and safety critical risks per year and applying controls to manage risks to an acceptable level.

Y1/Y2/Y3 Two critical risks reviewed within a year and improved controls progress reported our Senior Leadership Team and the Board

45

Include additional information about what we’re keeping an eye on – water sector reforms and climate change.

Updated wording.

Additional wording to Page 25:

The world is changing around us

It feels like there's a lot going on in the water sector, so it's important we remain well informed and ready to respond.

Most of the changes we are feeling at the moment flows from the Government's Havelock North Inquiry and the higher expectations customers have for their drinking water and the quality of our streams, rivers, harbours and the ocean.

Water sector reforms

The Government's announcement that there will be reforms to the water sector will bring about change to how we operate. When these changes are announced we’ll make sure our organisation is prepared.

Climate change

Climate change is impacting our region and we know it's having an effect on the performance of our stormwater and wastewater networks.

We'll work closely with our client councils to consider how we plan for and address these impacts, especially sea level rise and flooding. We'll use the modelling and evidence we collect to inform and advise our client councils.

46

Financials updated

Financials have been updated

Page 7: updated to $150

Page 32 $ Updated

Removed Equity values statement as already in financials.

Page 21:   $200 million based on 2019-21 projections

New Financial tables provided below for pages 33-35:

47

Measure 22 updated

Updated targets.

>550 complaints

48

Measure 15

Updated wording and targets.

Our customers will feel confident we’re working to understand and reduce our carbon emissions because we’ll have a verifiable target for reduced operational emissions and a plan for achieving that target

2019/20

Baseline carbon emissions inventory complete and certified emissions management and reduction plan in place

2020/21

Monitor audit of emissions and progress against target

Continue implementing recommendations made in carbon emissions reduction plan

2021/22

Monitor audit of emissions and progress against target

Continue implementing recommendations made in carbon emissions reduction plan

49

South Wairarapa District Council

Wording included to address possible inclusion of SWDC as a shareholder

Added sentence to Paragraph 1 / Page 29

As at 1 July 2019, the owners are considering a proposal to approve South Wairarapa District Council as a shareholder.

Problem Statements

Current unstabilised sludge disposal methods demand consent, transport, operating and landfill conditions that are unsustainable

(This is 50% of our problem)

Community and cultural values, regulations and industry requirements determine sludge disposal options and potential uses

(This is 20% of our problem)

Inconsistent regional practices impede a long-term integrated response to changing community and environmental challenges

(This is 30% of our problem)

Benefits of action

1.     Removes wet sludge as a constraint to landfill operations, and supports waste minimisation.

2.     Provides a wider range of beneficial re-use options.

3.     Better understanding and acceptance of beneficial re-use options.

4.     Unified response to changing government waste and carbon policies.

5.     Regional approach delivers value for money for customers.

About the issue

Current water consumption and a growing population will lead to water shortages, or require the development of a new water source by 2040

There are also threats to our existing water sources, such as potential contamination, that could restrict their use

Expected benefits

Water of appropriate quality is available to meet social, cultural and economic wellbeing

Improved efficiency of supply across the network (including reduced leakage)

Improved environmental outcomes at our water sources

Current status

Strategic case completed

Projects initiated to develop plans for:

·    Network pressure management (reduces leakage and increases asset lifetimes)

·    Enhanced operational leakage management (optimising our approach to leak detection and repair)

·    Commercial metering (ensuring all commercial sites are appropriately metered and identifying targets for demand and efficiency initiatives)

·    Understanding our ‘water balance’ (improving our understanding of domestic consumption to get a better picture of where water is being used).

“Construct or conserve?” workshop held with HCC. The workshop (and similar workshops with the other councils) will inform a policy on whether to prioritise conservation or the development of a major new water source.

Next steps

The initial stage of the projects will be complete in July, with potential future steps (including implementation) incorporated into the work programme (subject to funding).

Finalise review of success measures and KPIs to support the identification of suitable projects.

Continue “construct or conserve?” workshops.

Consider pilot projects for influencing domestic consumption behaviours.

Possible outcomes

Measures to reduce per-person and total demand, and improve end-use and operational efficiency (i.e. leakage) to avoid or defer investment in new sources.

Primary service goals affected

About the issue

The current method of sludge disposal for Wellington and Porirua, where unstabilised sludge is buried in landfills, is unsustainable and is constraining other waste minimisation initiatives.

The sludge is and its processing is a source of carbon emissions.

Community and cultural values constrain beneficial use options

Inconsistent practices impede a long-term integrated response

Expected benefits

Sludge disposal does not constrain landfill operations and waste minimisation activities.

Carbon emissions are minimised

Capturing of inherent value of sludge (i.e. energy and/or nutrients)

Current status

Strategic case being finalised

Next steps

Determine success measures and investment objectives

Long-listing of potential options for assessment against these measures and objectives

Possible outcomes

Additional processing to enable beneficial use as energy and/or nutrients and minimise total waste volume and carbon emissions

Primary service goals affected

About the issue

Stormwater is typically discharged into waterways without treatment but may contain contaminants that are harmful to health or the receiving environment

Waste water is occasionally discharged into the environment without treatment, or as a result of leaks in the network or public pipes.

The quality of our waterways is of increasing interest to our customers and is subject to increasing levels of regulation.

Expected benefits

Waterways that meet the public’s expectations for health and overall quality

Current status

Strategic case commenced

Next steps

Strategic case expected to be completed by mid-2019

Possible outcomes

Design approaches that prevent or minimise the discharge of untreated, contaminated water

Changes to regional and district plans and policies that help to control sources of contamination

Improved monitoring and analysis

Primary service goals affected

About the issue

Climate change is expected to increase the risk of flooding through increasing the frequency of major events and sea level rise

The intensification of land use and the associated increase in the use of non-permeable surfaces could increase stormwater volumes and increase the risk of flooding

Expected benefits

Minimised flooding impacts

Current status

Strategic case to commence in 2019/20

Possible outcomes

Design of new developments to provide for water neutrality (i.e. no net increase in stormwater volumes)

Increased use of green infrastructure and water sensitive urban design such as wetlands

Primary service goals affected

About the issue

Our water infrastructure is susceptible to failure in the event of a major natural event, such as an earthquake. Re-establishing services as quickly as possible after an event is essential for community wellbeing.

Expected benefits

Water services are restored to customers as quickly as possible

This is likely to be a staged process, with restricted services made available until a return to full service is possible

Current status

Our drinking water supply resilience strategy, ‘Towards 80-30-80’ is complete and is now being implemented.

Our Community Infrastructure Resilience programme, which provides for a return to restricted services by day 8 after an event, is nearing completion.

Longer term investment in resilient infrastructure is now underway but will require around 30 years to complete at current levels of investment

A strategic case for wastewater resilience has been completed but has yet to be finalised.

Risks to, and the vulnerability of the wastewater network have been assessed

Next steps

Finalise wastewater resilience strategic case and strategy

Develop operational response plan for wastewater

Incorporate identified vulnerable wastewater assets into long-term investment decision-making

Identify gaps in overall resilience response and required resolutions

Possible outcomes

Further public education on preparations for and activities after a major event

Work with critical customers to ensure they have response plans in place

Ongoing investment in more resilient infrastructure

Primary service goals affected

About the issue

Our population forecasts suggest that the region’s population could increase by more than 80,000 over the next 30 years and all of our client councils anticipate and are planning for growth. This growth will place increased demand on networks that, in many instances, are already operating at capacity

Expected benefits

Water services accommodate expected growth while ensuring required service levels are achieved

Current status

Our analysis to support our client councils in meeting their requirements under the National Policy Statement for Urban Development Capacity shows that the existing networks are unable to accommodate projected growth

Integrated catchment planning has commenced for some catchments with others planned

Next steps

Progress integrated catchment management plans, including assessing interactions between the three waters

Primary service goals affected

About the issue

Carbon emissions from our activities contribute to climate change. Our water sources and the waterways we operate in will be impacted by climate change, so it is in our interest to try and mitigate these effects.

The proposed Zero Carbon Act is expected to also impose national limits for carbon emissions.

Expected benefits

The impacts of climate change are mitigated

Reduced exposure to potential cost increases as the price of carbon becomes more embedded in the economy.

Current status

Our carbon emissions inventory (i.e. emissions sources and quantities) will be complete by end-June

Next steps

Once complete, the inventory will inform the development of emission reduction targets and an associated action plan

Possible outcomes

Investment in energy efficiency projects

Incorporation of a low carbon design philosophy into our standards and policies

Primary service goals affected

Introduction and scene-setting (facilitator)

Impacts of climate change and existing and proposed legislation on WWL’s services (WWL staff)

Discuss and agree implications for WWL

Councils outline their climate change strategies and targets.

Discuss alignment across councils and implications for the region and its water services.

Existing activities and potential opportunities for WWL to mitigate and adapt to climate change (WWL staff)

Discuss and agree the proposed high-level strategic policy framework for WWL’s region-wide climate change response, including potential emission reduction targets and the support required from the client councils to enable the strategy to be delivered.

Summary and next steps