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Wellington Water Committee

 

20 November 2020

 

 

 

Order Paper for the meeting to be held in the

Council Chambers, Porirua City Council, 16 Cobham Court, Porirua,

on:

 

 

Wednesday 25 November 2020 commencing at 3.30pm

 

 

Membership

Cr J Brash

Greater Wellington Regional Council

Cr D Bassett (Chair)

Hutt City Council

Mayor A Baker

Porirua City Council

Mayor A Beijen

South Wairarapa District Council

Mayor W Guppy

Upper Hutt City Council

Cr S Rush

Wellington City Council

Mr T Parai

Te Runanga o Toa Rangatira 

Cr J van Lier

Greater Wellington Regional Council (Alternate)

Deputy Mayor T Lewis

Hutt City Council (Alternate)

Cr R Leggett

Porirua City Council (Alternate)

Deputy Mayor G Emms

South Wairarapa District Council (Alternate)

Deputy Mayor H Swales

Upper Hutt City Council (Alternate)

Cr I Pannett

Wellington City Council (Alternate)

Ms N Solomon

Te Runanga o Toa Rangatira (Alternate)

Ms K Tamanui

Taranaki Whānui ki Te Upoko o Te Ika (Alternate)

 

 

 

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

 


Wellington Water Committee

Terms of Reference

 

 

Purpose

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

 

·      Provide governance and leadership across issues which are related to the planning, delivery and management of water services to communities serviced by Wellington Water Limited;

·      Provide governance oversight of Wellington Water Limited, including by exhibiting good governance practice;

·      Provide a forum for the representatives of Wellington Water Limited's shareholders and mana whenua to meet, discuss and co-ordinate on relevant issues and, through their representatives, to exercise their powers; and

·      Strive for consistency across all client councils so all customers receive a similar level of service.

 

Status

The Committee is, for the purposes of the Local Government Act 2002, a joint committee of the Lower Hutt City Council, Porirua City Council, Upper Hutt City Council, Wellington City Council, and the Wellington Regional Council.

 

Specific responsibilities

The Committee's responsibilities are:

 

Governance oversight responsibilities

 

Shareholder and mana whenua 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 geographical areas of Wellington Water Limited's operations, 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 parties to the Shareholders and Partnership Agreement and/or receive from time to time;

    Undertaking performance and other monitoring of Wellington Water Limited;

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

·      Providing co-ordinated feedback, and recommendations as needed, on any matters requested by Wellington Water Limited or any of the parties to the Shareholders and Partnership Agreement;

·      Providing recommendations to the parties to the Shareholders and Partnership Agreement regarding regional studies which the Shareholders need to be cognisant of;

·      Providing recommendations to the parties to the Shareholders and Partnership Agreement 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 parties to the Shareholders and Partnership Agreement 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 and;

·      Seeking and interviewing candidates for Wellington Water Limited's Board as needed and recommending to the holders of Class A Shares appointments and/or removals of directors of Wellington Water Limited;

    Recommending the remuneration of directors of Wellington Water Limited;

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

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

 

Membership

The membership of the Committee will be as specified in the Shareholders and Partnership Agreement.   With the exception of the Committee Members nominated by the Mana Whenua Partners Entities, each appointee must be an elected member of the appointing Shareholder.

 

Chairperson

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

 

Quorum

Subject to the below for Committee meetings to appoint directors of Wellington Water Limited, for a meeting of the Committee to have a quorum, a majority of Committee Members, or their appointed Alternates, must be present, and the number making up the majority must include at least an equal number of Shareholder appointed Committee Members as MWPE nominated Committee Members.

 

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.

 

Clause 11.3 of the company’s constitution provides that Directors shall be appointed and removed by the unanimous resolution of the Shareholders holding Class A Shares. For this matter the quorum for the Committee meeting is therefore attendance by all Committee Members (or their Alternates) for the holders of the Class A Shares.

 

Alternates

Each Committee Member appointed to the Committee must have an Alternate.

 

Other Shareholder attendee

Each Shareholder-appointed elected member Committee member will be entitled to invite an officer attendee to Committee meetings, provided however that the additional attendee will not have any voting rights on the Committee.

 

Decision-making

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 Committee Member 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 powers to make its own decisions on matters referred to it by the Committee and on matters specified in Part 1 of Schedule 2 to the Shareholders and Partnership Agreement (for clarity, this means that only Shareholders have voting rights in relation to the matters specified in Part 1 of Schedule 2).

 

Secretariat services

Unless otherwise agreed from time to time by all of the elected member Committee Members, the Council for which the Chairperson is an elected member will provide secretariat services to the Committee.   The Chairperson will be responsible for managing the agenda at Committee meetings.

 

Standing Orders

The Standing Orders of the Council providing secretariat services to the Committee will apply to Committee meetings, subject to the provisions for meeting quorum and decision making as set out in these terms of reference taking precedence.

 

Remuneration

Each Shareholder will be responsible for remunerating the elected member Committee Member appointed by it to the Committee, and their Alternate, for any costs associated with those persons' membership on the Committee.

 

The Shareholders will also be responsible for remunerating (in equal shares) the Committee Members nominated by Mana Whenua Partner Entities, and their Alternates, and appointed to the Committee by the Shareholders, for any costs associated with those persons' membership on the Committee.

 

Administration

Reports to be considered by the Committee may be submitted by any of the Shareholders, any of the Mana Whenua Partner Entities, 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.

Appendix

Common delegations by Shareholders

 

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 elected member 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 in the Council Chambers, Porirua City Council,
16 Cobham Court, Porirua
on

 Wednesday 25 November 2020 commencing at 3.30pm.

 

ORDER PAPER

 

Public Business

 

 

 

1.       APOLOGIES 

2.       PUBLIC COMMENT

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.       

3.       CONFLICT OF INTEREST DECLARATIONS

Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.     

4.       Minutes

Meeting Wellington Water Committee, 2 September 2020                                    9    

Extraordinary Meeting Wellington Water Committee, 3 November 2020         11

5.       Company Update (20/1568)

Report No. WWC2020/6/302 by Wellington Water Limited                             20

6.       Annual Report and Financial Statements (20/1571)

Report No. WWC2020/6/303 by Wellington Water Limited                             35

7.       Update on the New Water Services Regulatory Regime (20/1573)

Report No. WWC2020/6/304 by Wellington Water Limited                           106

8.       The Importance of Looking after Existing Three Waters Infrastructure (20/1567)

Report No. WWC2020/6/305 by Wellington Water Limited                           110

 

9.       Water Supply System Story (20/1570)

Report No. WWC2020/6/306 by Wellington Water Limited                           112

10.     Wellington City Mayoral Water Taskforce (20/1545)

Verbal update from Cr Rush, Wellington City Council

11.     EXCLUSION OF THE PUBLIC

CHAIR'S RECOMMENDATION:

 

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

12.     Minutes – 2 SEPTEMBER AND 3 November 2020

13.     Appointment of a Director to Wellington Water Limited (20/1546)

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:

 

(A)

(B)

(C)

 

 

 

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 2 September 2020 – Appointment of Directors to Wellington Water Ltd

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.

 

 

 

Minutes of the Wellington Water Committee held on 3 November 2020 Appointment of Directors to Wellington Water Ltd

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.

 

 

 

Appointment of a Director to Wellington Water Limited.

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

Head of Democratic Services

HUTT CITY COUNCIL

 


 

 

Wellington Water Committee

 

Minutes of a meeting held via ZOOM on

 Wednesday 2 September 2020 commencing at 10am

 

 

PRESENT: (via audiolink)

Cr D Bassett (HCC) (Chair)
Mayor W Guppy (Deputy Chair) (UHCC)
Cr J Brash (GWRC)
Mayor A Baker (PCC)
Mayor A Beijen (SWDC)
Cr S Rush (WCC)
Mr T Parai (
Te Runanga o Toa Rangatira) (from 10.05am)

 

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

 

IN ATTENDANCE:       Cr J van Lier (Alternate GWRC)

Ms W Walker, Chief Executive, (PCC)  

Ms K Stannard, Head of Democratic Services

 

 

 

PUBLIC BUSINESS

 

 

 

1.       APOLOGIES 

Resolved(Cr Bassett/Cr Brash)                                        Minute No. WWC 20501(3)

“That the apology received from Ms K Skelton be accepted and leave of absence be granted and the apology for lateness from Mr Parai be accepted.”

2.       PUBLIC COMMENT

There was no public comment.      

3.       CONFLICT OF INTEREST DECLARATIONS  

          There was no conflict of interest declarations.

Mr Parai joined the meeting at 10.05am.

 

 

 

 

 

 

 

 

4.       EXCLUSION OF THE PUBLIC

Resolved(Cr Bassett/Mayor Beijen)                                 Minute No. WWC 20503(3)

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

5.    Appointment of Directors to Wellington Water Limited (20/919)

       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:

 

(A)

(B)

(C)

 

 

 

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.

 

 

 

Appointment of Directors to Wellington Water Limited.

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 10.07am and the public excluded portion of the meeting closed at 10.17am.

 

 

 

Cr D Bassett

CHAIR

 

 

CONFIRMED as a true and correct record

Dated this 25th day of November 2020


 

 

Wellington Water Committee

 

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

 Tuesday 3 November 2020 commencing at 10.30am

 

 

PRESENT:

 

Cr D Bassett (HCC) (Chair)
Mayor W Guppy (UHCC) (Deputy Chair)

Mayor A Baker (PCC)

Mayor A Beijen (SWDC)

Cr J Brash (GWRC)

Cr S Rush (WCC)

 

APOLOGIES:                  An apology was received from Mr T Parai.  

 

IN ATTENDANCE:        Deputy Mayor T Lewis (Alternate HCC)

                                           Cr R Leggett (Alternate PCC)
Deputy Mayor H Swales (Alternate UHCC)

                                           Cr J van Lier (Alternate GWRC)

                                          Ms W Walker, Chief Executive, PCC
Mr S Mahoney, Company Portfolio Manager, (GWRC)

Mr P Kelly, Chief Executive (UHCC)
Mr G Dangerfield, Board Chair, Wellington Water Limited

Mr C Crampton, Chief Executive, Wellington Water Limited

Ms S Cuthbert, Principal Advisor, Wellington Water Limited

Mr E Stansfield, Manager, Service Planning – Network Strategy and Planning, Wellington Water Limited
Mr A van Paassen, Communications Engagement Manager, Wellington Water Limited
Ms K Stannard, Head of Democratic Services, HCC (part meeting)
Ms H Clegg, Minute Taker, HCC

 

 

PUBLIC BUSINESS

 

 

 

1.       APOLOGIES 

Resolved: (Cr Bassett/Cr Brash)                                         Minute No. WWC 20601

That the apology received from Mr T Parai be accepted and leave of absence be granted.”

2.       PUBLIC COMMENT

There was no public comment.      

 

 

 

3.       CONFLICT OF INTEREST DECLARATIONS    

          There was no conflict of interest declarations.  The Chair explained that he was a member and director of a number of organisations.  He highlighted that he had received written confirmation from the Auditor-General that he had no conflict of interest in relation to Wellington Water Limited.

 

4.

MINUTES (20/1333)

 

 

Resolved(Cr Bassett/Cr Brash)                                        Minute No. WWC 20602

“That the minutes of the meeting of the Wellington Water Committee held on
Monday, 29 June 2020, be confirmed as a true and correct record.”

 

Resolved(Cr Bassett/Mayor Baker)                                 Minute No. WWC 20603

“That the minutes of the meeting of the Wellington Water Committee held on
Friday, 24 July 2020, be confirmed as a true and correct record.”

 

5.

Wellington Water Limited Company Update (20/1324)

Report No. WWC2020/6/252 by the Wellington Water Limited.

 

The Chief Executive from Wellington Water Limited (WWL) elaborated on the report.

The Board Chair from WWL advised that the Annual Report was yet to be fully audited.  However, he highlighted that the financial statements had been audited with no issues.  He believed that Audit New Zealand was requesting further information on the service performance measures, especially the response times for call outs.  He added it was anticipated the final audit would be received in two to three weeks but may not be available for the upcoming Annual General Meeting.

In response to questions from members, the Board Chair from WWL acknowledged the time spent fulfilling Audit New Zealand’s requests.  He advised it was necessary work to ensure correct procedures were being followed.  He highlighted that he was confident in WWL’s processes.  He spoke of the proposed changes regarding the performance measures.

In response to questions from members regarding the small area meters, the Chief Executive of WWL advised these were permanent fixtures designed to obtain a representative picture of the water use situation. He added that, combined with the existing commercial meters, an overall water use picture could be developed for the city, including the location of potential leaks. 

In response to questions from a member regarding the timely dissemimation to each Council of the data collected by WWL, the Chief Executive from WWL advised that an effective database could be developed over three months.  He highlighted that there would be no additional costs incurred by Councils for this information as in-house managerial changes had resulted in more efficient uses of resources. 

In response to a question from a member concerning the increasing amount of water leak reporting over summer, the Chief Executive from WWL explained that when the ground dried over the summer months, the public noticed signs of water leaks.  He added that ageing underground pipes were put under stress when the soil dried out.

The Chief Executive from WWL agreed to send to Councils a dashboard graphic of the results of the critical asset assessments which would also be useful in tracking WWL progress.

In response to questions from members, the Chief Executive from WWL agreed to organise a visit for members to observe new technologies in the area. 

The Chair advised he was satisfied and confident with the level of reporting from WWL. 

 

Resolved(Cr Bassett/Cr Brash)                                        Minute No. WWC 20604

“That the Committee notes and receives the report.”

 

6.

2020/31 Long Term Planning Update (20/1328)

Report No. WWC2020/6/253 by the Wellington Water Limited

 

The Chief Executive from Wellington Water Limited (WWL) elaborated on the report.  He explained that Stage 3 of the process needed to be customised and optimised for each Council.  He advised that Mr Sutherland from Scottish Water had been engaged to provide audit advice.  He agreed to send the advice to Councils.  He provided a brief overview of the Long Term Plan advice presented to each Council.  The overview covered drought resilience risk work, reducing water demand and response time measures.

In response to a question from a member regarding the $47M stimulus package funding, the Chief Executive from WWL advised the funding had been allocated to specific projects (in consultation with each Council).  He confirmed the funding had to be spent by June 2022 and that if any project was delayed then there was a “back-up” list of proposed projects to ensure the funding could be utilised.

In response to questions from members regarding the the measures for response times, the Chief Executive from WWL advised the business case being developed was assessing a different process.  He highlighted that the different process was a “one-stop-shop” approach for urgent callouts.  

In response to questions from a member, the Chief Executive from WWL advised that the Long Term Plans contained different OPEX and CAPEX combinations to achieve water conservation.  He agreed that public education on water use and conservation may be able to be made more extensive.

In response to questions from a member regarding public feedback each Council received concerning priorities for infrastructure spending, the Chief Executive from WWL advised that the Stimulus Funding Package projects had been developed in conjunction with extensive consultation with Council officers.  He added that possible changes may occur with regard to the amount of leakage detection work.

In response to a question from a member regarding water meters, the Chief Executive from WWL advised that the report on a business case for regional water meters would be available for the next Committee meeting.

Mayor Baker expressed support for WWL’s Long Term Plan process.  She highlighted that it was up to individual Councils to determine rates funding.

Cr Brash expressed support for WWL’s Long Term Plan process.  She added that it was not preferable to build another storage lake at Te Marua at a cost of $230M.

Mayor Guppy advised Wellington would face a similar water crisis to Auckland if infrastructural spending was not future proofed and increased.

 

 

 

Resolved(Cr Bassett/Mayor Baker)                                 Minute No. WWC 20605

“That the Committee:

(i)       notes that stimulus funding and reform activities are influencing Councils’ consideration of future investment for three waters;

 

(ii)     notes the interdependency between the current state of the network, the investment levels and targets for performance measures;

 

(iii)   notes that advice on what performance targets are practically achievable will be updated in line with ‘stage 3’ budget-optimised investment plans (ie the targets will need to reflect the level of investment);

 

(iv)   agrees to the principle of adopting regionally consistent performance measures and targets from the 2021/31 Long Term Plan onwards;

 

(v)     endorses continued engagement with Council officers on how Wellington Water Limited can improve the consistency and meaningfulness of performance measures for the 2021/31 Long Term Plan; and

 

(vi)  notes that inconsistent regional investment in the Reducing Water Consumption priority may result in the need for investment in a new water source inside the 2021/31 Long Term Plan and that this has not been included in the proposed investment plan for bulk water.”

 

7.

Future Management of Water

The Chair advised that numerous suggestions/issues raised in the Wellington Water Limited’s (WWL) submission to central government’s Three Waters Reform had been adopted. 

The Chief Executive from Porirua City Council (PCC) advised the Three Waters Reform Funding Agreement had been signed by all Councils with the opt in/opt out process set for mid-2021.  She added that all Chief Executives had been sent a request for further information (RFI) from central government concerning the stimulus package funding.  She highlighted that the request was for a significant amount of detailed information which would involve a substantial amount of officers time.  She added that moving forward, the Chief Executives were looking to implement the same process for the Three Waters Reform that had been adopted for the Regional Spatial Plan.  She highlighted that Mr Patchett had been engaged to facilitate the process.

Mr Patchett explained that he was developing a project team drawing on officers from all Councils to develop a clear work programme based on Department of Internal Affairs (DIA) work streams.  He also explained the process to be undertaken by 1 February 2021.  He added that public consultation may be required at some stage in the process leading up to Councils being able to make informed decisions about the opt in/opt out process in mid-2021.

Mr Patchett advised that the Department of Internal Affairs would be providing additional information in February/March 2021 regarding the full reform process.  He noted that a Cabinet paper was due in May 2021 and the new legislation timed to be being introduced in September/October 2021.  He added that the reforms were timed to be enacted in June 2022. 

In response to a question from a member regarding the RFI, the Chief Executive from PCC advised there was no legal requirement for Councils to supply this.  However, all Councils had signed the Memorandum of Understanding (MoU) in good faith and there was value in having regional data. 

Mayor Beijen expressed concern that the requirement for this information was not signalled prior to the signing of the MoU.  He questioned the need for the ownership structure of Three Waters infrastructure to be changed and whether proposed aggregations would encourage monopolies.  He questioned the lack of public consultation by central government on publicly owned assets worth billions of dollars.  He questioned whether the timeframes set were realistic. 

The Chief Executive from PCC reiterated it was advantageous for Councils in the Wellington region to gain an in-depth understanding of the Three Waters’ networks in the region.   She added that each Council would have to be agile in the process.

Deputy Mayor Swales expressed concern that tight timeframes and requests for significant amounts of information would place a huge strain on officers.  The Chief Executive from PCC advised that $60,000 per Council had been allocated to assist with RFI information collection. 

Cr Brash noted that all Councils were bound by the requirements of the Local Government Act (the Act) and could not operate outside of this.  She added the Act required a prescribed public consultation process to be carried out if there were amendments to a Long Term Plan. 

Cr Leggett believed the timeframes were too tight and that it was vital that complete data and facts be presented in the RFI responses.

Mayor Baker agreed with Cr Leggett’s comments.  She added that PCC was happy to continue with the process.

The Chair supported information sharing within the region and signalled the role of the Committee may change in the future depending on the outcomes of the reform.  He also questioned the governance role of the Committee regarding the information being collected for the RFI.

Members discussed the future of the Committee noting that central government had already signalled WWL did not fit the aggregation criteria.  It was suggested the Committee present an alternative to central government, rather than an alternative structure being forced on the region.  The Chief Executive from PCC advised that the regional Chief Executives would continue to keep the Mayoral Forum updated and that a regionally consistent message to central government was important. Members agreed that regular reporting from Mr Patchett was required.

 

8.

Wellington Water Limited Proposed Review (20/1338)

 

Mayor Guppy elaborated on the letter.  He expressed Upper Hutt City Council’s (UHCC) concern as to a perceived lack of reporting and transparency from Wellington Water Limited (WWL) to the Committee.  He highlighted an example of the lack of transparency offered by WWL.  He believed members had a responsibility to their ratepayers to make sure Three Waters services were being delivered in the best possible way.  He requested a full review of WWL be undertaken with urgency.  He believed there was an opportunity to improve processes. 

Mayor Baker expressed Porirua City Council’s support of WWL.  She did not support a full review being undertaken, especially in light of the current Three Waters Reform.  She questioned whether UHCC wanted to withdraw from WWL.

Cr Brash agreed with Mayor Baker’s comments.

Mayor Beijen believed WWL’s processes were improving and that there was a proper process to follow if members believed there were issues with the quality of reporting.  He added he would support a review of WWL that related to future capability and the use of innovation.

Cr Rush advised that it was good practice to question process.  He suggested the once-proposed service agreement be reinstated, with an improved reporting requirement.  He agreed that with the Three Waters Reforms currently underway, it was not a good time to review WWL.  He did not support the points raised by Mayor Guppy concerning the lack of audit reporting.

 

Resolved:  (Cr Bassett/Cr Rush)                                     Minute No. WWC 20606

“That the Committee:

(i)            receives and notes the content of the letter; and

(ii)          does not support proceeding with a full review of Wellington Water Limited at this stage, in order to focus attention on the government Three Waters Reform; and

(iii)        requests Mayor Guppy provide specific information in regard to his “lack of transparency” claims, for the Chair of the Committee to raise with Wellington Water Limited.”

9.

Annual General Meeting of Wellington Water Limited - Wednesday, 25 November 2020

In response to a question from a member, the Board Chair from Wellington Water Limited (WWL) advised there was a statutory requirement for WWL to hold its Annual General Meeting by the end of November 2020.

 

Resolved:  (Cr Bassett/Mayor Guppy)                            Minute No. WWC 20607

“That an additional meeting of the Wellington Water Committee be held on 25 November 2020 at the Wellington Water Limited offices, immediately following the Wellington Water Limited Annual General Meeting.”

 

10.

General Business

There was no general business.

11.     EXCLUSION OF THE PUBLIC

Resolved:   (Cr Bassett/Mayor Guppy)                           Minute No. WWC 20608

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

12.     MINUTES (20/1336)

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:

(A)

(B)

(C)

 

 

 

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 on 29 June 2020 – Appointment of Directors to Wellington Water Limited

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 12.15pm and the non-public portion of the meeting closed at 12.27pm.

 

 

                                                                                    Cr D Bassett

CHAIR

 

CONFIRMED as a true and correct record

Dated this 25th day of November 2020.

   


                                                                                      22                                                25 November 2020

Wellington Water Committee

19 November 2020

 

 

 

File: (20/1568)

 

 

 

 

Report no: WWC2020/6/302

 

Company Update

 

Purpose of Report

1.    To provide the Wellington Water Committee with an overview of the company’s performance for Quarter 1 of 2020/21.

Recommendation

That the Committee notes and receives the report.

 

Context

2.    Wellington Water accounts for its performance in terms of its Statement of Intent (SOI) and the Department of Internal Affairs (DIA) performance measures; some of which are included in the councils’ Long Term Plans.

Statement of Intent Update

3.    The Q1 Performance Report (attached as Appendix 1 to the report) focuses on performance against our SOI measures. In general, the company is on track to deliver on its planned achievements for the year.

4.    Each quarter, we would like to focus on one achievement and this quarter it is on the progress made in providing safe water to the communities of the South Wairarapa District Council (SWDC). The following tables show the status of supply in terms of the minimum water standards as of 1 October 2019 compared to a year later. It is expected all water supplies will be fully compliant by 30 June 2021.

5.    The status as at October 2020 is summarised in table 2.

6.    Next quarter, we will introduce a report on the Delivery Plan.

Operational Update (including DIA measures)

 

7.    Quarter 1 has been a relatively stable month for the provision of three waters services. We supplied safe drinking water to the metropolitan area of Wellington and supplied water to the residents of SWDC without any incidents. We have made excellent progress improving the provision of safe drinking water to SWDC residents as shown above.

8.    We carried away wastewater from all homes and businesses, treated it and discharged it in accordance with our consents. And we maintained the stormwater network to protect people from the impacts of rainfall events.

9.    Each council receives a summary of our operational performance via our Long Term Plan (LTP) dashboards sent at the end of each quarter (and it goes to elected members). This involves reporting against the LTP and Department of Internal Affairs mandatory measures.

10.  Overall comments are as follows:

a)    Councils’ networks continue to provide challenging operating conditions due to the age and condition of the assets. We continue to see an increasing number of service requests although a lesser number for the first part of the year compared to previous years. We are also experiencing increasing complexity in the types of faults and the cost to repair them, eg. burst trunk water mains.

              As a result, our performance against the DIA response time measures continues to be outside council target response times (with some exceptions). Customer satisfaction on call backs, however, continues to exceed our SOI target of 80%. Please refer to your individual council dashboards for further details on response time performance.

 

b)   Gross consumption of drinking water exceeds targets. We think the main reason for this is an increase in network leakages (below ground). The fiscal stimulus package has enabled us to increase the number of our leak detection and repair crews so we are hoping for an improvement over the rest of the year. 12 of 15 small area meters have been installed across the networks and they are now automatically sending information to our main office. As we interpret this data we will be able to narrow down our searches for leaks in the field. The increase in gross consumption, together with our current elevated drought resilience risk, means we are all on high alert for managing the drinking water system over the summer months. We may need to constrain supply to residents because either:

a.  a daily spike in demand could exceed available supply; and

b.  dry weather conditions mean we are using lake water ahead of budget to get us through the dry summer months.

11.  Both these risks are under careful management by Wellington Water Limited. We are currently focused on leak detection and repair up until the end of year and then as we enter the drier months, progressively working through the water restriction control levels. Attached as Appendix 2 to the report shows the restriction levels.

Appendices

No.

Title

Page

1

Appendix 1 Q1 Report 2020-21 FINAL Performance Report

23

2

Appendix 2 Water Restriction Controls

34

 

Author: Wellington Water Ltd

  


Attachment 1

Appendix 1 Q1 Report 2020-21 FINAL Performance Report

 


 


 


 


 


 


 


 


 


 


 


Attachment 2

Appendix 2 Water Restriction Controls

 


                                                                                      37                                                25 November 2020

Wellington Water Committee

19 November 2020

 

 

 

File: (20/1571)

 

 

 

 

Report no: WWC2020/6/303

 

Annual Report and Financial Statements

 

Purpose of Report

1.    To present Wellington Water Limited’s Annual Report 2019/20 including the Financial Statements.

Recommendation

That the Committee receives Wellington Water Limited’s Annual Report for the year ended 30 June 2020.

 

Summary

2.    Wellington Water is required to deliver an Annual Report within three months of the end of the financial year which includes the Annual Financial Statements. The statutory deadline was extended to the end of November this year in recognition of the impact of Covid-19. 

3.    As Wellington Water Limited is a council-controlled organisation, the Office of the Auditor General is the appointed auditor of the company. As in past years, they have engaged Audit NZ to complete this year’s audit on their behalf.

4.    The Draft Annual Report 2019/20 is included in Attachment A. Audit NZ has yet to deliver their final opinion; however they have provided a verbal update advising Wellington Water they have concerns with five of our non-financial performance measures.  These concerns relate to data quality, collection techniques and our ability to verify results when they are solely determined by our internal team.

5.    In the annual report we have asterisked the five performance measures (fault attendance and resolution response time measures occur multiple times for different asset types and are repeated for each council) and outlined the issue and the corrective action we propose to take.

6.    The measures of concern to Audit New Zealand are:

a.       Fault response time measures – the integrity of the data collected and the verification of our crews’ attendance and resolution of the fault called in by customers.

b.       Wastewater: Dry weather sewerage overflows – we accept the methodology should be improved to use independently sourced data to corroborate internal data with respect to reporting the number of dry weather overflows.

c.       Water loss - leakage rates to local networks cannot be independently verified. We accept Audit NZ’s comments on this measure. Certainty over water loss rates will improve as more meters are introduced into the network.

d.      Client (call-back) satisfaction survey; a Statement of Intent measure; Audit NZ notes concerns with the methodology and the lack of independent oversight of how this process is carried out, which Wellington Water accepts.

e.       Customer satisfaction (Department of Internal Affairs mandatory measure) - the current methodology used by Palmerston North City Council’s after hours service for all councils except Wellington City Council creates a risk of under-reporting of complaints.

7.    We are hopeful for a written audit opinion from Audit NZ before the Water Committee meeting. However, it is possible we will only receive a verbal opinion on the day. The attached annual report is still draft due to the absent audit opinion.

Financial Statements

 

8.    The Annual Financial Statements show a deficit of $249k before taxation.  This was an excellent result in what was a challenging year of competing priorities.

Evaluation of Performance

 

9.    Notwithstanding the ongoing work being undertaken by Audit NZ, Wellington Water has had a satisfying year as it has continued to improve its capability to deliver on its strategic outcomes. Overall performance has been pleasing given the increasingly demanding operating environment. There have been a few areas of performance where results could have been better.

10.  The company continues to develop at a fast pace in order to deliver to increasing customer expectations and to drive performance improvement.

11.  Significant achievements include bringing South Wairarapa District Council (SWDC) on board as a sixth shareholding council, responding to two significant wastewater network failures limiting the environmental impact of each, maintaining service delivery during the Covid-19 lockdown, and delivering our initial ‘early signals’ Long Term Plan advice to each of our client councils. The company further developed a partnership approach with Mana Whenua and continued to engage strongly with its client councils on the emerging challenges around growth, sustainable water supply, receiving environment water quality and climate change.

 

12.  Areas where results could have been better include compliance with drinking water standards in SWDC, wastewater discharge consent compliance, and building positive working relations with developers and suppliers.

13.  Our Statement of Intent sets out a number of measures by which we track our performance. We have achieved the 2019/20 target on 43 out of 68 (63%) of these measures; we are satisfied with this result.

Appendices

No.

Title

Page

1

Appendix 1 WWL Annual Report 2020

38

    

 

 

 

 

 

Author:  Wellington Water Ltd

 

 

  


Attachment 1

Appendix 1 WWL Annual Report 2020

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


                                                                                     109                                               25 November 2020

Wellington Water Committee

19 November 2020

 

 

 

File: (20/1573)

 

 

 

 

Report no: WWC2020/6/304

 

Update on the New Water Services Regulatory Regime

 

Purpose of Report

1.    To update the Wellington Water Committee on the Government’s proposals for a new water services regulatory system and seek approval for the preparation of a select committee submission.

Recommendations

That the Committee:

(i)    agrees to work together to develop a select committee submission in response to the Water Services Bill; and

(ii)   asks the Chair to circulate a draft submission to members for comment prior to finalising and submitting to the select committee.

 

Summary

2.       The Government’s Three Waters Reform programme involves establishing the new water services regulator, Taumata Arowai, developing a new regulatory system for water services outlined in the Water Services Bill, and considering how water services will be delivered at a national level.

3.       The Taumata Arowai - Water Services Regulator Act establishing the new water services regulator, Taumata Arowai, was passed in July 2020. The water committee made a submission to the select committee setting out how the proposals would impact on Wellington Water as a service provider.

4.       The Water Services Bill (the Bill) has since been introduced into parliament and is expected to receive its first reading, and be referred to select committee by the end of the year. The Bill provides another opportunity for the Water Committee to influence the development of the new regime.

5.       Further analysis is underway to assess the proposed regime set out in the Bill and the impact it will have on the company. In the meantime, the Water Committee is invited to consider whether it wants to prepare a submission.

Context

 

6.       The Government’s Three Waters Reform programme consists of three streams:

(a)     The establishment of the new water services regulator, Taumata Arowai

(b)     The new regulatory systems outlined in the Water Services Bill

(c)     Reforms to water delivery services.

7.       The Taumata Arowai - Water Services Regulator Act was passed in July 2020, establishing the new water services regulator, Taumata Arowai. Over the past year, an establishment unit has been operating from the Department of Internal Affairs to set up the new crown entity. Taumata Arowai is expected to be fully functioning by mid 2021 once governance members have been appointed and the Water Services Bill has been passed.

8.       The Bill has been introduced into parliament and is expected to receive its first reading, and be referred to select committee by the end of the year. The Bill can be found here.

9.       There is an opportunity for the Wellington Water Committee to make a submission.

Wellington Water Committee Submission

10.  The Wellington Water Committee has previously made a submission to the Health Select Committee on the Taumata Arowai- Water Services Regulator Act.

11.  The Water Services Bill provides another opportunity for the water committee to influence the development of the new regime.

12.  The Bill implements the Government’s decision to comprehensively reform the drinking water regulatory system, with targeted reforms to improve the regulation and performance of wastewater and stormwater networks.

13.  While the initial focus of Taumata Arowai will be ensuring the drinking water provisions are implemented, we understand that wastewater may also quickly be a focus (quicker than the original two year proposed timeframe).

14.  The Bill provides for a comprehensive regulatory regime. Further analysis is underway to assess the proposed regime. Wellington Water Limited staff are involved in the Water NZ technical working group currently assessing the Bill.

 

15.  Overall, we do not expect there to be major issues arising from the Bill as it essentially sets up a standard regulatory regime for operators.

16.  Some key areas of focus at this stage are:

·    The Bill provides for a comprehensive regulatory regime and a high level competency framework, but the sector is severely under-resourced to respond. Realistic timeframes for implementation will be key to ensure adequate time to set up training pathways and develop competencies across the sector.

·    There are challenges in understanding what the principles of te mana o te wai mean and the implications for compliance. A level of certainty will be needed to ensure water utilities have sufficient clarity to inform investment decisions.

·    Water utilities will need to be authorised and the detailed requirements will be set out via regulation – what kind of attributes are needed?

·    Source water protection plans will require a catchment approach – how does the sector ensure the right mechanisms are in place to support multi-organisation collaboration?

·    What is the relationship between councils and non-council small suppliers in the event of non-compliance?

17.  Due to the nature of the legislative proposals, we think it’s likely there will be a high level of alignment between owner councils on issues and therefore efficiencies across the councils could potentially be gained if only one submission was prepared. However, the councils may also wish to make individual submissions.

18.  The select committee may call for submissions prior to the end of the year. In the event that submissions close prior to the next water committee meeting, which is scheduled for March 2021, it is proposed that a draft submission is circulated to members and approved by the Chair.

Getting the business ready for the new regime

19.  All territorial authorities and council-controlled organisations will be required to become authorised, or have their drinking water services delivered by an authorised supplier, within five years of the commencement of the Bill.

20.  The company has commissioned a business case to be developed to assess the impact of the new regulatory regime on its internal systems (particularly data and technology), processes and people (competency and capability), as well as impact on the councils’ infrastructure asset requirements.  


 

 

Next steps

21.  Wellington Water Limited work with a nominated group of Council officers to develop a Wellington Water Committee submission on the Water Services Bill once the select committee call for submissions.

 

22.  In the event submissions close prior to the next Wellington Water Committee, the Chair will circulate the draft submission to committee members for approval, prior to submission.

 

23.  The Chair will appear at the select committee to speak on behalf of the Wellington Water Committee.

Appendices

There are no appendices for this report.   

 

 

 

 

 

Author: Wellington Water Ltd

 

  


                                                                                     111                                               25 November 2020

Wellington Water Committee

19 November 2020

 

 

 

File: (20/1567)

 

 

 

 

Report no: WWC2020/6/305

 

The Importance of Looking after Existing Three Waters Infrastructure

 

Purpose of Report

1.    To outline the importance of looking after the existing three waters infrastructure and the consequences of under-funding renewals and maintenance, and to outline Wellington Water Limited’s approach to managing these assets for you.

Recommendations

That the Committee:

(i)    receives and notes the report; and

(ii)   notes the importance of looking after existing infrastructure.

Summary

2.    The region’s $6 billion of three waters infrastructure needs to be appropriately looked after to ensure it meets the needs of current and future customers.

3.   The assets have not been renewed at the optimal rate, resulting in a network that is increasing in age and increasingly susceptible to breakages, leaks and overflows.

4.   Constrained budgets are having to accommodate an ever increasing amount of reactive activities, reducing the funding available for renewals and planned maintenance activities such as asset condition assessments. Reduced investment in these areas compounds the ageing assets problem.

5.   The only way to address this downwards spiral in performance is to significantly increase investment in renewals and our councils are signalling that they will commit to increased funding in their 2021/31 long term plans (LTPs) This commitment is going to need to be continued over the coming decades, and be supported by accurate asset valuations. Valuations that are below the true costs of asset replacement will result insufficient funding being made available through depreciation.

6.      The additional funding made available by Councils, together with additional government stimulus funding is enabling us to undertake condition assessments for all very high criticality assets.  We have also begun to invest in the systems necessary to collect, store and analyse this and other important asset and performance data and make better operating and investment decisions. We now need to focus on building and sustaining an annual condition survey budget which allows for ongoing assessments and the ability to plan renewals based on condition and not just age.

Appendices

There are no appendices for this report.   

 

 

 

 

 

Author:  Wellington Water Ltd

 

 

 

 


                                                                                     113                                               25 November 2020

Wellington Water Committee

19 November 2020

 

 

 

File: (20/1570)

 

 

 

 

Report no: WWC2020/6/306

 

Water Supply System Story

 

Purpose of Report

1.    To outline the current state of our water supply system, from catchment to tap, and the actions we are taking to ensure our customers always have enough water, and that we supply and use it as efficiently as possible, all while respecting the water and the environment.

Recommendations

That the Committee:

(i)      notes that Wellington Water Limited has evaluated the water supply system from source to customer and laid out the challenges the metropolitan Councils of Wellington face;

 

(ii)     notes that Wellington Water Limited has yet to carry out a similar exercise for the South Wairarapa District Council;

 

(iii)    notes the previous decision of the Wellington Water Committee to conserve water first and then to look to build more storage second;

 

(iv)    notes one of the tools which could be used to conserve water could be residential meters and that an economic case investigating the merits of residential meters has been completed;

 

(v)     notes the Economic Case for Providing Residential Water Consumption Information prepared for Wellington Water by Ernst Young concludes there is a case for residential meters due to a reduction in leaks and the influencing of customers use of water with timely information;

 

(vi)    agrees that Wellington Water Limited should now commission a detailed business case on behalf of its shareholder Councils to further refine the case for residential meters;

 

(vii)   notes that Wellington Water Limited has advised its shareholder Councils to place the cost of residential meters in year five of their long term plans as part of the region’s approach to the conservation of water; and

 

(viii)  requests all members of the Wellington Water Committee to refer Wellington Water Limited’s Water Supply System report and the Economic Case for Providing Residential Water Consumption Information to their individual Councils.

 

Summary

2.    Providing a sufficient quantity of safe and healthy water to customers while managing the environmental impact is a fundamental requirement for any water supply entity, but our ability to achieve this for the Wellington metropolitan region is becoming increasingly challenging.

 

3 When considering this issue it is important to take a complete system view, including both supply and demand and looking from water sources to the customer.

 

4 This report describes the current state of this system, and the actions underway to ensure we meet our customers’ expectations.

Appendices

No.

Title

Page

1

Appendix 1 - Economic Case for Providing Residential Water Consumption Information

114

    

 

 

 

 

Author: Wellington Water Ltd

 

 

  


125