Komiti Ngā Wai Hangarua ] Wellington Water Committee
Minutes of a meeting
held in the Council Chambers, Upper Hutt City Council,
838-842 Fergusson Drive, Upper Hutt on
Friday 5 March 2021 commencing at 1.00pm
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PRESENT: |
Cr D Bassett (HCC) (Chair) Mayor W Guppy (UHCC) (Deputy Chair) |
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Mayor A Baker (PCC) Mayor A Beijen (SWDC) Cr J Brash (GWRC) Cr S Rush (WCC) |
APOLOGIES: Mr T Parai (Te Runanga o Toa Rangatira)
IN ATTENDANCE: Deputy Mayor T Lewis (Alternate HCC)
Cr R Leggett (Alternate PCC)
Deputy Mayor G Emms (Alternate SWDC)
Deputy Mayor H Swales (Alternate UHCC)
Mr P Barry, Acting Board Chair, Wellington Water Ltd
Ms W Walker, Chief Executive, PCC
Ms J Miller, Chief Executive, HCC (part meeting)
Mayor C Barry, HCC (part meeting)
Mr
P Kelly, Chief Executive, UHCC
Mr T Williams, Chief Infrastructure Officer, WCC (part meeting)
Mr B Patchett Project Director – Regional Water Reform Director (part meeting)
Mr
C Crampton, Chief Executive, Wellington Water Limited
Mr M Ford, General Manager Business Services, Wellington Water Limited
Ms S Cuthbert, Principal Advisor, Wellington Water Limited
Mr F Clark, Principal
Advisor, Strategy Wellington Water Limited
Ms K Stannard, Head of Democratic Services, HCC (part meeting)
Ms H Clegg, Minute Taker, HCC
PUBLIC BUSINESS
1. APOLOGIES
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Resolved: (Cr Bassett/Mayor Guppy) Minute No. WWC 21101 “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 were no conflict of interest declarations.
4. Minutes
Mayor Guppy requested a response to his letter tabled at the last meeting. The Chair agreed to follow up Mayor Guppy’s request.
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Resolved: (Cr Bassett/Cr Brash) Minute No. WWC 21102 “That the minutes of the meeting of the Komiti Ngā Wai Hangarua ] Wellington Water Committee held on Wednesday, 25 November 2020, be confirmed as a true and correct record.” |
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5. |
The Project Director Regional Water Reform explained that a collaborative effort between the shareholder Councils and Wellington Water Ltd (the company) to respond to requests for information was nearing completion. He advised the Water Industry Commission for Scotland (WICS) estimated an additional $26B would be required to be invested in Three Waters infrastructure due to growth. He noted that this was in addition to the billions they estimated were required to bring the existing networks up to standard. The Project Director Regional Water Reform advised that he was currently running briefings with Councils. He noted there were common themes emerging including investment prioritisation, how local priorities would be recognised, how the voice of Councils and communities would be heard and cross subsidisation. He added that concerns with governance and control were varied with some Councils wanting high levels of influence and others wanting only shareholder abilities. He advised that concerns regarding the future of local government, liabilities and privatisation had also been raised. He added the transition process and equity in the system were also of concern especially regarding debt transfer methodology. He noted that little comment had been received regarding the scale and boundaries of aggregation and there was limited outright opposition to the reforms. He advised that over the past three months, the Chief Executives from local athorities in the lower North Island and upper South Island had met, sharing intelligence and views on the reforms. He added the Chief Executive meetings were set to continue. The Project Director Regional Water Reform outlined the next steps in the process. He noted the Chief Executives of the Wellington area were meeting next week to discuss next steps. He asked members what kind of advocacy the region should be undertaking bearing in mind the Chief Executives already liaised with the Department of Internal Affairs (DIA) and advisory groups. He highlighted the company and Wellington Water Committee (the Committee) would have the opportunity to comment at the upcoming meeting. He acknowledged the differing views of Councils. He suggested the Mayoral Forum could be an avenue for advocacy. He suggested that as the parameters of the reform emerged, questions regarding the transition period would become clearer. He stressed the importance of understanding debt valuation and transfer methodology, timeframes and the ability to provide input into the process. With regard to the Three Waters vs Two Waters conversation, the Project Director Regional Water Reform advised the Ministers responsible for this area had recently established an Advisory Group which would investigate the topic over the next six weeks. He further advised that the DIA was increasing conversations regarding the future of local government and were looking to establish a formal steering group to formally investigate this. He then outlined the approach other regions in New Zealand were taking regarding Three Waters reform. In response to questions from members, the Chief Executive PCC confirmed central government’s ambitious timetable was currently on-track with a Cabinet paper due in May 2021. She agreed that the absence of a representative from the Committee on the DIA’s steering group could be an issue. In response to a question from a member regarding the level of engagement with local iwi, the Project Director Regional Water Reform advised that the DIA had an Iwi Engagement Programme underway and that consultation was the responsibility of central government. The Chief Executive, PCC advised that it was not appropriate for local authorities to attempt to present central government’s view of the reforms. She advised that the best approach would be for the Committee to continue to converse with its iwi members. Members noted that Local Government New Zealand had an iwi component. They also noted iwi throughout New Zealand had concerns with the level of engagement they had in the Three Waters reform. In response to a question from a member regarding flood protection and stormwater, the Project Director Regional Water Reform acknowledged the impact each one had on the other. |
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Resolved: (Cr Rush/Cr Brash) Minute No. WWC 21103 "That the Committee makes application to the Department of Internal Affairs to be invited to join the Three Waters Reform Steering Committee.”
Mayor Guppy asked that his dissenting vote be recorded against the above matter.
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The meeting adjourned at 1.34pm and resumed at 1.40pm.
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6. |
2019/20 Wellington Water Limited Annual Report (21/308) Report No. WWC2021/1/54 by Wellington Water Limited |
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Ms Karen Young, Audit Director from Audit New Zealand was in attendance for the item. The Acting Board Chair, Wellington Water Limited (the company) explained that plans had been put in place to address the issues that had resulted in the qualified opinion contained in Auditor’s report for last year’s Annual Report. The General Manager, Business Services of the company explained the company had taken a pragmatic approach to the Auditor’s report. He noted that two of Audit New Zealand’s concerns could not be met in the coming financial year. He advised that accurate water loss could not be ascertained due to the lack of sufficient numbers of water meters throughout the network. He highlighted that Deloitte New Zealand had peer reviewed the company’s approach and had concluded it was sound. The Chief Executive of the company advised the customer survey component of the measures had been retrospectively updated. He noted the company distinguished between service requests and complaints whereas Audit New Zealand treated all customer inquiries as complaints. Ms Young explained that Audit New Zealand assessed companies based on the legal requirements set by the Department of Internal Affairs (DIA). In response to a question from a member regarding the ability of staff to follow procedure in the field, the Chief Executive of the company explained the standard the company aspired to was accurately written down including recording of attendance and response times, verification by a third party and spot checks by the Depot Manager each day. He was confident staff followed all safety procedures and that the MAXIMO system would improve the recording of response times. He noted point 7b) contained in the report had been updated to reflect the correct information, attached as page 11 to the minutes. In response to a question from a member, the Acting Board Chair of the company confirmed the Board was confident with the operational systems in place at the company. In particular those plans implemented as a result of the recent Audit New Zealand qualified opinion. He said there remained a risk of another qualified opinion being given at the end of the current financial year. In response to a question from a member regarding the installation of sectional water meters, Ms Young advised that the limited numbers proposed for these meters would likely not meet the water loss measurement standards. She acknowledged the installation of meters was outside of the company’s control. She stressed that the issue was not leaking pipes rather it was how much the company knew about the loss of water. |
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Resolved: (Cr Bassett/Cr Rush) Minute No. WWC 21104 “That the Committee receives the Wellington Water Limited 2019/20 Annual Report attached as Appendix 1 to the report.” |
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7. |
Wellington Water Limited's Draft Statement of Intent 2021-24 (21/309) Report No. WWC2021/1/55 by the Wellington Water Limited |
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The Acting Board Chair, Wellington Water Ltd (the company) elaborated on the report. In response to a question from a member, the Chief Executive from the company acknowledged the short turnaround time which had been allowed for several Councils to provide feedback on acceptable performance measures. In response to a question from a member, the Chief Executive of the company elaborated on the water meter installation issue as detailed in the draft Statement of Intent. In response to amendments required as identified by members, the Chief Executive of the company acknowledged paragraph 12 contained in the report should refer to 30 July 2021 and that page 13 of the Draft Statement of Intent should read ‘the system approach had not been completed’. |
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Resolved: (Cr Bassett/Mayor Guppy) Minute No. WWC 21105 “That the Committee: (1) receives Wellington Water Limited’s draft Statement of Intent 2021-24 attached as Appendix 1 to the report; (2) considers and provides feedback on Wellington Water Limited’s draft Statement of Intent by Monday, 24 May 2021; (3) endorses the outlined approach to finalise Wellington Water Limited’s Statement of Intent 2021-24 to allow for alignment with Councils Long Term Plans; and (4) agrees to provide Wellington Water Limited with a one month extension in accordance with Schedule 8, Part 1, Clause 4 of the Local Government Act 2002 to deliver the final Statement of Intent 2021-24 to the Committee by 30 July 2021.” |
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8. |
Submission to Health Committee on Water Services Bill (21/311) Report No. WWC2021/1/56 by the Chief Executive, Porirua City Council |
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The Principal Advisor, Wellington Water Limited elaborated on the report. |
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Resolved: (Cr Bassett/Cr Rush) Minute No. WWC 21106 “That the Committee: (1) approves the draft submission on the Water Services Bill attached as Appendix 1 to the report; and (2) agrees that a Wellington Water Limited representative and a Wellington Water Committee member will appear before the Health Committee to present the submission.”
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Wellington Water Limited Company Report (21/312) Report No. WWC2021/1/57 by Wellington Water Limited |
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The Chief Executive, Wellington Water Limited (the company) elaborated on the report. In response to a question from a member, the Chief Executive of the company explained the delay in estimating a cost per kilometre of pipe was due to differences in the design and state of the network within each local authority. He noted that information would be reported to members in due course. In response to a question from a member regarding the failure of the company to meet the water leakage targets, the Chief Executive from the company explained the small area meters were now providing useful data regarding overnight leakages. He noted that the data would be sent to members prior to each Wellington Water Committee meeting. He also added that additional leakage crews had been established with regular reporting being initiated. In response to a question from a committee member regarding the reason for the reprioritisation of the Stimulus Funding, the Chief Executive of the company explained that priority was being given to the High Critical Assessment Programme as it became apparent the state of the network was not as good as first thought. |
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Resolved: (Cr Bassett/Mayor Guppy) Minute No. WWC 21107 “That the Committee receives and notes Wellington Water Limited’s Company Report attached as Appendix 1 to the report.” |
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Wellington Water Limited - Half Yearly Report to 31 December 2020 (21/295) Report No. WWC2021/1/58 by Wellington Water Limited |
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The Acting Board Chair, Wellington Water Limited (the company) elaborated on the report. In response to a question from a committee member, the Acting Board Chair of the company explained the company was currently reprioritising operations to ensure there was no requirement for Councils to alter their Long Term Plan budgets. In response to a question from a member regarding Priority 3, the Chief Executive of the company advised the economic case for water meters had been completed. He added that the next stage of investigations would be reported in due course including cost estimates for hardware, software and other technical components. In response to a question from a member regarding Priority 5, the Chief Executive of the company agreed the word “adaption” could be used. |
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Resolved: (Cr Bassett/Mayor Baker) Minute No. WWC 21108 “That the Committee notes and receives Wellington Water Limited’s Half-yearly report for the six months ended 31 December 2020 attached as Appendix 1 to the report.” |
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11. |
2021/31 Long Term Planning Update (21/303) Report No. WWC2021/1/59 by Wellington Water Limited |
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The Chief Executive, Wellington Water Limited (the company) elaborated on the report. He highlighted that the figure for Upper Hutt City contained in the Appendix 1 table attached to the report should be $36 rather than $61. The Principal Advisor, Strategy of the company advised the company worked closely with Council officers when developing work programmes. In response to a question from a member, the Principal Advisor, Strategy of the company agreed to work with officers to organise a Council workshop regarding changes to performance measures. Mayor Beijen requested the motion be taken in parts. Parts (1)-(6) were CARRIED by the voices. |
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Resolved: (Cr Bassett/Mayor Baker) Minute No. WWC 21109 “That the Committee: (1) notes the progress update and emerging themes with Councils’ Long Term Plan (LTP) engagement activities; (2) notes that cost estimates for LTP investment follow Wellington Water Limited’s cost estimates manual and are subject to change as projects progress through the design stages; |
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(3) notes that regionally consistent performance measures and targets in line with mandatory Department of Internal Affairs (DIA) performance measures[1] have been developed with Council officers in line with its agreement from 3 November 2020; Mayor Beijen asked that his dissenting vote be recorded against (3) above. |
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(4) endorses only the inclusion of mandatory DIA performance measures1 in Council LTPs to improve regional consistency of performance measures; (5) notes that additional outcome focused measures could be included through the Statement of Intent process; and (6) notes that targets have been proposed which reflect the indicated level of investment in the 2021-31 LTPs.” |
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12. |
A System Approach – Looking After Existing Infrastructure (21/302) Report No. WWC2021/1/60 by Wellington Water Limited |
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The Principal Advisor, Strategy, Wellington Water Limited (the company) elaborated on the report. In response to a question from a member, the Principal Advisor, Strategy of the company agreed the company needed to improve bringing the environment focus to the forefront of all decision making. He believed that Councils’ District Plans would include water sensitive design requirements and would be required to implement the Whaitua recommendations. In response to questions raised by a member regarding the Maintenance and Condition Assessment Programme, the Principal Advisor, Strategy of the company advised critical assets were being assessed as a priority with less critical ones programmed accordingly. He confirmed the company had been working with Council officers to inform their Infrastructure Plans. In response to a question from a member regarding the likelihood of another qualified opinion being received, the Chief Executive, PCC advised she and the Chief Executive of the company would be meeting with the Auditor-General and would report back to the next meeting. |
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Resolved: (Cr Bassett/Mayor Beijen) Minute No. WWC 21110 “That the Committee receives and notes the report.” |
13. CHAIR’S STATEMENT
The Chair advised that this was the last meeting for Cr Brash. He acknowledged and thanked Cr Brash for her commitment to the Wellington Water Committee (the Committee).
Cr
Brash explained she was moving into a regulatory governance role and that
Cr van Lier would replace her. She thanked the Chair for his leadership and
acknowledged the Board, the Chief Executive of Wellington Water Limited (the
company) and his team. She urged members to strongly lobby central
government for additional investment funding.
The Chair announced his resignation from the Committee. He outlined his highlights as Chair and stated his satisfaction with the development of the company and the regional efficiencies in Three Waters that had eventuated. He added that this included the establishment of the regional emergency stations. He said the current Three Waters reform programme was presenting to be a challenge and the Wellington region was well placed to meet the challenge. He highlighted the company model enabled co-ordinated responses to emergencies such as the Kaikoura earthquake. He acknowledged past and present members and Deputy Chair Mayor Guppy. He acknowledged past and present Chief Executives administrative liaisons and support services. He thanked the past and present Board members and senior management of the company. He asked that all staff be cared for and well supported during the Three Waters reform.
Mayor Guppy thanked both Cr Brash and the Chair for their contributions to the Committee.
14. EXCLUSION OF THE PUBLIC
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Resolved: (Cr Bassett/Mayor Beijen) Minute No. WWC 21111 “That
the public be excluded from the following parts of the proceedings of this
meeting, namely: 15. Minutes - 25 November 2020 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:
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.”
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Cr D Bassett
CHAIR
CONFIRMED as a true and correct record
Dated this 17th day of May 2021
measures will not be sustainably addressed in the short term and therefore the 2020/21 year and the period 2021/24 will most likely still be qualified on this measure alone.
Improvement Plan for Measures “Qualified” by Audit NZ
Measures Controlled by Wellington Water
7. Fault Response and Resolution Times
Audit NZ position - The Company was unable to accurately report on fault response times for each of the three water services. The information produced by the system used to report on fault response times was not reliable because attendance and resolution times for service requests were not always recorded at the point in time they occurred.
Wellington Water response – we continue to improve our systems and the way we collect and report data, however these particular measures rely completely on our staff following procedures in the field. Audit NZ suggested a verification system would improve these measures considerably. Reporting response times should remain unchanged, but the reporting of resolution times can be improved.
(a) Fault response times –
Attendance times at an event offer limited value as a performance measure, as customers are more interested in when their issues are resolved (i.e. resolution times). Councils have made it clear to us that time to attend is not a key performance metric for their reporting requirements. The cost of applying a data verification process for attendance reporting is unlikely to provide net benefits to customers. On this basis, we recommend retaining the status quo approach to reporting attendance times.
b) Fault resolution times –
We will implement a formal notification process that includes depot managers verifying a baseline sample of 10% of service requests against a prescribed checklist. As results are collated and lessons learned, we will review the sample size to ensure it adequately represents the nature of the service requests being completed.
8. Dry weather wastewater overflows
Audit NZ position - The Company was unable to accurately report the number of dry weather sewerage overflows, which it also reports on in terms of its statement of intent measures. The system used for recording events included blockages in the wastewater network that did not necessarily result in an overflow.
Wellington Water response – we have refined our methodology for reporting.
The Wellington Water methodology to determine the number of overflow events didn’t adhere to the DIA methodology. The true intent
[1] Local Government Act 2002 requires the Secretary for Local Government to make measures specifying non financial performance measures for local authorities to use when reporting to their communities. These are a requirement in local government planning including council controlled organisations.