2                                        16 December 2019

Wellington Water Committee

 

Minutes of a meeting held in the Hutt City Council Chambers, 2nd Floor, 30 Laings Road, Lower Hutt on

 Monday 16 December 2019 commencing at 1.00pm

 

 

PRESENT:

Cr J Brash (GWRC)

 

Cr D Bassett (HCC)

 

Mayor A Baker (PCC)

 

Mayor A Beijen (SWDC)

 

Mayor W Guppy (UHCC)

 

Cr S Rush (WCC)

 

Mr T Parai (Te Runanga o Toa Rangatira)

 

Ms K Skelton (Taranaki Whānui ki Te Upoko o Te Ika)

 

IN ATTENDANCE:       Deputy Mayor T Lewis (Alternate, Hutt City Council)
Deputy Mayor G Emms (Alternate, South Wairarapa District Council)
Deputy Mayor H Swales (Alternate Upper Hutt City Council)
Cr I Pannett (Alternate Wellington City Council)

                                          Mr D Wright, Chair, Wellington Water Ltd
Mr P Barry, Board Member Wellington Water Ltd

                                           Ms C Brophy, Board Member Wellington Water Ltd

Ms W Walker, Chief Executive, Porirua City Council
Mr P Kelly, Chief Executive, Upper Hutt City Council
Mr C Crampton, Chief Executive, Wellington Water Ltd

Mr A van Paassen, Communications Engagement Manager, Wellington Water Ltd (part meeting)

Ms S Cuthbert, Principal Advisor to the Chief Executive, Wellington Water Ltd

Mr D Baxter, City Engineer, Wellington City Council

Ms S Gain, General Manager Corporate Services, Greater Wellington Regional Council

Ms K Stannard, Divisional Manager Democratic Services

Ms H Clegg, Minute Taker

 

PUBLIC BUSINESS

 

 

1.       APOLOGIES 

There were no apologies.

 

2.       PUBLIC COMMENT

There was no public comment.     

3.       CONFLICT OF INTEREST DECLARATIONS  

          There were no conflict of interest declarations.

4.

Procedure to Elect the Chair and Deputy Chair (19/1389)

Report No. WWC2019/1(2)/239 by the Divisional Manager, Democratic Services

 

Resolved(Mayor Baker/Cr Bassett)                                 Minute No. WWC 191(2)01

“That the Committee:

(i)      receives and notes the contents of the report;

(ii)     chooses voting system B (election by the greatest number of votes) for the election of the Committee Chair and Deputy Chair;

(iii)    agrees that, in the event of a tie under voting system A, the candidate to be excluded from the next round of voting shall be resolved by lot as described in section 14 of the officer’s report; and

(iv)    agrees that, in the event of a tie under voting system B, the candidate to be elected shall be resolved by lot as described in section 14 of this report.”

 

The Chief Executive, Porirua City Council called for nominations for Chair.  One nomination was received. 

 

In response to a question from Cr Swales, the Chief Executive, Porirua City Council confirmed there were no voting rights for Alternate members of the committee

 

 

 

Resolved(Mayor Baker/Cr Brash)                                Minute No. WWC 191(2)02

“That Cr Bassett be elected as Chair of the Wellington Water Committee.”

 

Cr Bassett assumed the Chair.  He thanked members for their confidence in him.  He stated that in early 2020 he was keen to commence a review of the governance of the Committee.  He outlined several challenges facing the Committee including the new regulator, a new Bill and trying to obtain capital from the government to assist with major projects.

The Chair called for nominations for Deputy Chair.  One nomination was received.

 

Resolved: (Cr Bassett/Mayor Baker)                               Minute No. WWC 191(2)03

“That Mayor Guppy be elected as Deputy Chair of the Wellington Water Committee.”

 

5.

Shareholder Resolution in lieu of Annual General Meeting (19/1392)

Report No. WWC2019/1(2)/240 by Wellington Water Ltd

 

The Chief Executive, Porirua City Council elaborated on the report.

In response to Cr Brash’s request for a copy of the Quarterly Report July – October 2019, the Divisional Manager Democratic Services, Hutt City Council agreed to send her a copy.

 

Resolved(Cr Bassett/Cr Brash)                                        Minute No. WWC 191(2)04

“That the Committee:

(i)    notes the report;

(ii)   notes that the Annual Report was published on 30 September 2019 which fulfilled the relevant statutory requirements; and

(iii)  resolves not to hold an Annual General Meeting of Wellington Water Limited for the 2018/19 financial year.”

 

6.

Extension of the Wellington Water Ltd Board Chair's Term (19/1391)

Report No. WWC2019/1(2)/241 by Wellington Water Ltd

 

The Chair elaborated on the report.  He added that it was preferable to retain Wellington Water Ltd’s Board Chair while the proposed governance review was undertaken.  He confirmed he had spoken with Mr David Wright, the current Board Chair, and
Mr Wright agreed to remain in the position until the end of July 2020.

In reponse to a question from a member, the Chair advised extending the Board Chair’s tenure until the end of July 2020 would ensure the governance review was completed, prior to the appointment of a new Board Chair.

 

Resolved(Cr Bassett/Mayor Baker)                                 Minute No. WWC 191(2)05

“That the Committee approves an extension of the Board Chair’s term for six months until 31 July 2020.”

 

7.

Meeting Schedule 2020 (19/1390)

Memorandum dated 6 December 2019 by the Divisional Manager, Democratic Services

 

Resolved(Cr Bassett/Cr Brash)                                        Minute No. WWC 191(2)06

“That the Committee agrees to the meeting schedule for 2020 as follows:-

 

(a)      Thursday, 5 March 2020 commencing at 2pm followed by a workshop (Greater Wellington Regional Council);

 

(b)      Wednesday, 3 June 2020 commencing at 10am followed by a workshop (Upper City Council);

(c) Wednesday, 30 September commencing at 10am followed by a workshop (Porirua City Council); and

(d)   Wednesday, 25 November 2020 commencing at 10am followed by a workshop (Wellington City Council)”

 

8.

Letter of Expectation (19/1393)

Report No. WWC2019/1(2)/242 by the Chief Executive, Porirua City Council

 

The Chief Executive, Porirua City Council elaborated on the report.   She explained Wellington City Council (WCC) had requested minor changes to the Letter of Expectation which were not included in the report.  She added the changes requested altering the order of priorities, placing “Delivering Core Business” as the first priority of the list and adding “10%” after 40 litres to the last sentence of the Sustainability of Water section.

The Chair added the proposed changes did not materialistically alter the Letter of Expectaiton.

In response to a question from a member, the Chief Executive, Porirua City Council advised the Statement of Intent would be prepared shortly and that it could include any further changes which may arise from the Company Update Report.

Members agreed that the priority: “Delivering Core Business”,  be amended to: “Delivering Core Business to Provide Value for Money”.

In response to a question from an Alternate, the Chief Executive, Porirua City Council advised WCC had requested the changes.

Cr Brash requested wording changes in the Climate Change paragrah to better articulate who the “we” related to and that there were individual council climate change targets that needed to be met.

The Chief Executive, Wellington Water Ltd agreed to the proposed amendments as discussed during the item.

 

Resolved(Cr Bassett/Cr Brash)                                        Minute No. WWC 191(2)07

“That the Committee:

(i)    receives the report;

(ii)   approves the 2020-2023 shareholder Letter of Expectation to Wellington Water Limited (attached as Appendix 1 to the report) subject to amendments made at the meeting; and

(iii)  authorises the Wellington Water Committee Chair to sign the letter.”

 

9.

Company Update Report (19/1394)

Report No. WWC2019/1(2)/243 by Wellington Water Ltd

 

The Chief Executive, Wellington Water Limited (‘the company’) elaborated on the report. 

With regard to Environmental Scanning, the Chief Executive of the company advised that many of the issues had been discussed at the workshop and more information concerning the proposed water reforms would be available later in the week.  He added that there were no updates regarding the National Resources Plan. 

With regard to the Quarterly Report, the Chief Executive of the company explained the number of service requests had steadily increased since 2016 for a number of reasons.  He advised the transfer to the new alliance had resulted in a backlog of requests.  He noted all resources were being directed to addressing all service requests including non-urgent requests.  He acknowledged targets for each council were currently not being met and that talks were ongoing with officers from each council.  He added officers were discussing how to manage the increase in reports of leakages within the required response times, budgets and with the new delivery model.  He further added that WWL would release all data in upcoming reports, and that a risk management approach was being taken to dealing with leakages.

The Chief Executive of the company explained the increase in the number of reported leaks could be due to less reliable data being available, fragile networks which were susceptable to shaking and the fact that some networks were reaching their end of life.  He added that the focus of the company was to lift performance and to work within a risk management approach.

In response to questions from members, the Chief Executive of the company explained response target times varied for each council and talks were ongoing with officers from all councils.  He acknowledged a report would be presented to each council outlining realistic steps forward for each individual council.  He also acknowledged concerns regarding the company’s ability to comply with the aspirations of Greater Wellington Regional Council to be carbon zero by 2030.  He advised that the company proposed to conduct a public communications exercise in the New Year to help explain the leakages repair issues.  He reiterated the 40% increase in reportings of leaks and the issues facing the company.

The Board Chair of the company stated that with increased budgets, the company would be able to increase its response rates.  He added the company was currently deploying existing resources as efficiently as it was able to, within budgets, and that the increased number of leaks was the issue.

In response to a question from a member, the Chief Executive of the company advised the company was in the process of reporting to each council regarding leaks and response times.

Deputy Mayor Swales expressed concern that if targets were not being met, the company should bring the situation to the attention of each council immediately rather than waiting for a quarterly report.  She added if resourcing was an issue then that should be dealt with under some urgency.  She highlighted that Upper Hutt City Council was not prepared to accept that the situation was a ‘business as usual’ occurrence.

The Chief Executive of the company advised that the company was preparing for the next Long Term Plan cycle with each council and was planning to engage with officers in early 2020.  He also advised that moving forward, the company intended to report on the four priorities of each council at each quarter rather than yearly.

Cr Brash congratulated the company on the water conservation media campaign.

 

Resolved(Mr Parai/Mayor Beijen)                                   Minute No. WWC 191(2)08

“That the Committee notes and receives the information contained in the report.”

 

 

OTHER BUSINESS

The Chair advised that a recommended programme regarding the government review would be circulated as soon as possible once he had discussed the issue with the Deputy Chair.

Deputy Mayor Swales requested an action sheet be circulated with the minutes of each meeting.

The Chair advised that the number of Wellington Water Ltd Board members would be be assessed during the upcoming governance review.  He added that with the current requirement for unanimous support for any constitutional changes, alterations to governance took time.

 

 

 

There being no further business the Chair declared the meeting closed at 1.50pm.

 

 

 

 

D Bassett

CHAIR

 

CONFIRMED as a true and correct record

Dated this 5th day of March 2020

 


 

ACTION SHEET – Matters arising from the Wellington Water Committee Meeting of

6 December 2019

 

ITEM

ACTION

PERSON

TIME FRAME

ACTIONED

Item 5 – Shareholder Resolution in Lieu of AGM

Quarterly Report send to Cr Brash

Divisional Manager Democratic Services, HCC

Prior to Christmas 2019

Item 8 – Letter of Expectation

Final copy to be signed

Chair, WW Committee

As soon as possible.

Item 9 – Company Update Report

Briefing Paper presented to each council regarding moving forward on the leakages issue

Chief Executive, WWL

A soon as possible

 

Item 9 – Company Update Report

Public communications regarding repairing leaks

Chief Executive, WWL

Early 2020

 

Item 9 – Company Update Report

Second Quarterly Report sent to all members

Chief Executive, WWL

By end of December 2019

 

Item 9 – Company Update Report

LTP cycle talks with council officers

Chief Executive, WWL

Beginning early 2020

 

Item 9 – Company Update Report

Reporting on each of the four priorities for each council

Chief Executive, WWL

Each Quarterly Report