Komiti Ngā Wai Hangarua | Wellington Water Committee
Minutes of a meeting held in the Council Chambers,
2nd Floor, 30 Laings Road, Lower Hutt on
Monday 19 July 2021 commencing at 1.00pm
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PRESENT: |
Mayor C Barry (Chair) (HCC) |
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Mayor W Guppy (Deputy Chair) (UHCC) |
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Mayor A Baker (PCC) |
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Mayor A Beijen (SWDC) |
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Ms L Rauhina-August (Taranaki Whānui ki Te Upoko o Te Ika) |
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Cr S Rush (WCC) |
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Cr J van Lier (GWRC) |
APOLOGIES: There were no apologies.
IN ATTENDANCE: Ms N Hooper, Observer, SWDC
Deputy Mayor H Swales (UHCC Alternate)
Deputy Mayor G Emms (SWDC Alternate)
Cr C Kirk-Burnnand (GWRC Alternate)
Cr R Leggett (PCC Alternate)
Deputy Mayor T Lewis (HCC Alternate)
Mr B Bayfield Chief Executive Officer, Taumata Arowai
Mr C Crampton, Chief Executive, Wellington Water Limited
Mr G Dangerfield, Board Chair, Wellington Water Limited
Mr M Underhill, Board Member, Wellington Water Limited
Ms L Carroll, Board Member, Wellington Water Limited
Ms J Alexander, Group Manager, Network Strategy and Planning, Wellington Water Limited
Mr M Ford, Group Manager, Business Services/Chief Financial Officer, Wellington Water Limited
Ms S Cuthbert, Company Secretary, Wellington Water Limited
Mr D de Boer, Director of Regulatory Services, Wellington Water Limited
Other representatives from Wellington Water Limited
Ms S Gainsborough, General Manager, Corporate Services, GWRC
Ms B McKerrow, Chief Executive, WCC (part meeting)
Ms W Walker, Chief Executive, PCC
Mr D List, Project Director, PCC
Mr B Hodgins, Strategic Advisor, HCC (part meeting)
Ms K Stannard, Head of Democratic Services, HCC
Mrs A Doornebosch, Democracy Advisor, HCC
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. Minutes
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Resolved: (Mayor Barry/Mayor Beijen) Minute No. WWC 21301 “That the minutes of the meeting of the Komiti Ngā Wai Hangarua|Wellington Water Committee held on Monday, 17 May 2021, be confirmed as a true and correct record subject to an amendment to Ms L Rauhina-August’s name which had been spelt incorrectly.” |
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5. |
Wellington Water Limited - Approach to Regulation (21/1096) Report No. WWC2021/3/173 by Wellington Water Limited |
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Mr Geoff Dangerfield, Chair, Wellington Water Limited Board elaborated on the report. He noted the report outlined how Wellington Water Limited (the Company) was preparing for the new environment. He highlighted issues for future investment and the various councils’ work around their Long Term Plans. Mr Bill Bayfield, Chief Executive Officer of Taumata Arowai provided an update presentation on the establishment and work to date of Taumata Arowai, attached as pages 12 to 21 to the minutes. In response to questions from members, the Chief Executive Officer of Taumata Arowai noted many smaller district councils were performing very well in regard to new regulation requirements. He highlighted the new Water Services Bill would require all water suppliers to provide safe drinking water. He said further discussions would be conducted in regard to the new risk management approach whilst considering Te Mana o te Wai. He said Taumata Arowai would not be involved in the supply of bottled water. He noted new management systems would be considered over the transition, reporting a national picture for New Zealand. He advised any levies would be determined in conjunction with the Department of Internal Affairs. He noted the Water Services Bill had drawn information from a variety of agencies from World Health Organisation standards, whilst considering ownership, legal requirements and a consenting regime. The Director of Regulatory Services, Wellington Water Limited elaborated on the Approach to Regulation presentation. In response to questions from members, the Director of Regulatory Services advised feedback from both the Company and other Councils would be gathered and reported to the Committee going forward. Mayor Barry acknowledged the work completed to date to prepare for the new Water Services Bill. He thanked Wellington Water Limited representatives for working collaboratively to develop future work plans to date. |
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Resolved: (Mayor Barry/Mayor Baker) Minute No. WWC 21302 “That the Committee: (1) notes that Wellington Water Limited has been proactive in preparation for regulation; (2) notes that Wellington Water Limited is building its regulatory maturity ahead of full compliance from 1 April 2022; and (3) notes that the Water Services Bill will carry risks for Wellington Water Limited and for Council asset owners who make decisions on investments in drinking water assets.” |
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The Project Director, Porirua City Council provided a water reform update presentation attached as pages 22 to 25 to the minutes. In response to questions from members, the Chief Executive of Porirua City Council outlined the engagement that would be conducted over the next eight weeks with all Councils. She said Councils were expected to provide a preliminary position to prepare for future consultation. She noted that central government required a clear picture before developing further processes. In response to a question from a member, the Project Director, Porirua City Council could not confirm if any of the expected costs would be derived from ratepayers. Members agreed to work collaboratively to provide a preliminary regional view for future consultation on water reform, and report back to the Committee. |
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Resolved: (Mayor Barry/Cr Rush) Minute No. WWC 21303 “That the Committee notes the update on water reform.”
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Wellington Water Limited - Final Statement of Intent (21/1093) Report No. WWC2021/3/170 by Wellington Water Limited |
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The Chair of the Wellington Water Limited (the Company) Board elaborated on the report. He noted the Statement of Intent was a critical document between the Company and the Committee as it prioritised its intentions and identified where investment would be made for the next three years. He highlighted amended Department of Internal Affairs service measure targets based on investment levels were recommended but not all Councils adopted these amendments. He said as a result not all measures would be met. He noted there remained a number of risks to service levels, asset development, investment in infrastructure and reactive maintenance. He highlighted once the Tranche 1 funding from central government ended in March 2022 there would be a funding gap. In response to questions from members, the Chair of the Company’s Board noted there were some capacity restraints as a result of the current labour shortage. He highlighted plans were in place to mitigate this issue as much as possible. He said that water metering in the Company’s view, would need to be addressed. In response to a question from a member, the Chief Executive of the Company said investment had been made in some small area water meters to obtain an indication of usage. The results indicated usage was less than thought, which meant there was more leakage. He noted that some investment had been made to mitigate this. |
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Resolved: (Mayor Barry/Mayor Beijen) Minute No. WWC 21304 “That the Committee receives Wellington Water Limited’s final Statement of Intent 2021-2024 attached as Appendix 1 to the report.” |
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Water Services Investment 2021-2024 (21/1104) Report No. WWC2021/3/176 by Wellington Water Limited |
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The Group Manager, Network Strategy and Planning, Wellington Water Limited (the Company) elaborated on the report. She highlighted the insights provided from a regulatory perspective from all Councils. She said every Council had made a lift in investment and the report set out key insights on the risk to investment from a regional perspective. She noted the intent to work with each Council and manage future challenges over the next three years. In response to questions from members, the Group Manager, Network Strategy and Planning, Wellington Water Limited said the Company would be focussing more investment on service challenges. She advised that there could be some disruption to customers as issues were worked through. She noted it would be long period of time before all issues were rectified. Members asked the Company to provide a traffic light system for reporting theses issues to the Committee going forward. They acknowledged the assistance the Company had provided to the community over the recent weekend of unsettled weather. |
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Resolved: (Mayor Barry/Mayor Baker) Minute No. WWC 21305 “That the Committee: (1) notes the $300M operational and $585M capital investments Wellington Water Limited will make over the 2021-24 period, which represents a significant increase compared with the 2018-2021 period; (2) notes even with the increased investment it will take years to address the backlog of renewals in the ageing pipe network, so bursts and leaks will continue, placing pressure on operational budgets and increased risk to delivery of water services; (3) notes the output range for the region’s capital programme is forecast to be $145M-$189M in year one and will progressively ramp over during years two and three to deliver the full capital programme; (4) notes there are additional emerging pressures that compound the budget risks, including meeting the new requirements of Taumata Arowai and increasing water use as a region; and (5) notes that Wellington Water Limited will continue to work closely with councils, be clear on the specific risks for their communities and how best to manage the impacts.” |
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Wellington Water Limited Update June 2021 (21/1105) Report No. WWC2021/3/177 by Wellington Water Limited |
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The Chief Executive, Wellington Water Limited (the Company) elaborated on the report. He noted once agreed, the Company Promise document would be available on the Company’s website. He said the Company was concerned about the current chronic skills shortage, and advised they were employing contractors at present to mitigate this. He highlighted the proposed Fulton Hogan training programme for 40 young people to be trained and then employed by the Company. In response to questions from members, the Chief Executive of the Company advised the Company was working with Wellington City Council to deliver a possible sludge facility. He said as part of the Service Delivery Strategy, initiatives would be put in place to ensure the retention of local clients. |
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Resolved: (Mayor Barry/Mayor Beijen) Minute No. WWC 21306 “That the Committee receives and notes the report.” |
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Wellington Water Limited - Service Delivery Strategy Review - Findings and Recommendations (21/1107) Report No. WWC2021/3/178 by Wellington Water Limited |
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The Chief Executive Officer, Wellington Water Limited (the Company) elaborated on the report. In response to questions from members, the Chief Executive Officer of the Company advised as the Company completed the Service Delivery Strategy (SDS), they would share experiences with South Wairarapa District Council on ways to manage wastewater over the next five years. He said the priority for the next two months would be around skills and capability development in the SDS. He advised at present there was no requirement for contracted staff to meet certain skill levels, and that this would be a way to uplift capability in three years time. He noted an independent review on water treatment highlighted the Company did not have a good value for money framework and plans were in place to address this. He highlighted work required with wastewater treatment providers. He said the Company was requesting an improvement plan and monthly reporting and the requirement to report back to the Board of the Company. He advised the Company would complete an asset condition report from all plants and report back results to future Committee meetings. |
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Resolved: (Mayor Barry/Mayor Guppy) Minute No. WWC 21307 “That the Committee: (1) notes that this reporting is provided as part of the Value for Money reporting to the Committee; (2) notes the overall performance of the Service Delivery Strategy attached as Appendix 1 to the report; (3) notes the multiple changes in the operating environment since the Service Delivery was implemented and that if Wellington Water Limited had not implemented these changes, it could not have provided the level of service and value for money it currently does; and (4) endorses the recommendations contained in the Service Delivery Strategy review as Appendix 1 attached to the report for inclusion into the next version of the Service Delivery Strategy.” Mayor Beijen abstained from voting on the matter. |
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Wellington Water Limited - Annual General Meeting and Audit Update (21/1095) Report No. WWC2021/3/172 by Wellington Water Limited |
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The Chair of the Wellington Water Limited Board noted that an update on audit issues would be provided at the upcoming Annual General Meeting (AGM). He highlighted delays the Audit office were experiencing and that legislation would be passed to allow more time to report in future. The Chief Financial Officer and General Manager Business Services, Wellington Water Limited elaborated on the report. He noted improvement plans had been incorporated into the Asset Management Plans. He said a question and answer programme had been added to ensure management of faults, and a customer satisfaction measure had also been added. He highlighted the Company was reliant on council’s reporting in order to analyse results. |
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Resolved: (Mayor Guppy/Mayor Beijen) Minute No. WWC 21308 “That the Committee; (1) notes and receives the report; (2) notes an audit improvement plan has been implemented; (3) notes that the draft interim audit report to the Wellington Water Limited Board for the 2020/2021 year has not been received to date; (4) notes that the 2020/2021 audit opinion will likely be non-standard; and (5) notes an Annual General Meeting will be held later in 2021.” |
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Meeting Schedule for the remainder of 2021 (21/1082) Memorandum dated 6 July 2021 by the Head of Democratic Services, Hutt City Council |
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The Divisional Manager, Democratic Services elaborated on the memorandum. Members agreed to conduct a workshop early in 2022 in South Wairarapa and invite other South Wairarapa District Council representatives to attend as observers. |
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Resolved: (Mayor Barry/Mayor Baker) Minute No. WWC 21309 “That the Committee:
(1) agrees to adopt the following meetings dates for the remainder of 2021 as follows:
(a) Friday, 24 September 2021; and (b) Monday, 29 November 2021;
(2) confirms the venue for its meetings will be the Council Chambers, Hutt City Council, 30 Laings Road, Lower Hutt; and
(3) agrees to live cast the public part of its meetings.” |
13. EXCLUSION OF THE PUBLIC
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Resolved: (Mayor Barry/Mayor Baker) Minute No. WWC 21310
“That the public be excluded from the following parts of the proceedings of this meeting, namely: 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.” |
Mayor C Barry
CHAIR
CONFIRMED as a true and correct record
Dated this 24th day of September 2021
