Komiti Ngā Wai Hangarua | Wellington Water Committee

 

 

24 November 2021

 

Order Paper for the meeting to be held in the

Hutt City Council Chambers, 30 Laings Road, Lower Hutt,

on:

 

 

Monday 29 November 2021 commencing at 1.00pm

The meeting will be held under Alert Level 2.

 

Membership

Mayor C Barry (Chair)

Hutt City Council

Mayor W Guppy (Deputy Chair)

Upper Hutt City Council

Mayor A Baker

Porirua City Council

Mayor A Beijen

South Wairarapa District Council

Ms M Pomare

Te Rūnanga O Toa Rangatira

Ms L Rauhina-August

Taranaki Whānui ki Te Upoko o Te Ika

Cr S Rush

Wellington City Council

Cr J van Lier

Greater Wellington Regional Council

Deputy Mayor G Emms

South Wairarapa District Council (Alternate)

Cr C Kirk-Burnnand

Greater Wellington Regional Council (Alternate)

Cr R Leggett

Porirua City Council (Alternate)

Deputy Mayor T Lewis

Hutt City Council (Alternate)

Cr I Pannett

Wellington City Council (Alternate)

Ms N Solomon

Te Rūnanga O Toa Rangatira (Alternate)

Deputy Mayor H Swales

Upper Hutt City Council (Alternate)

Ms K Tamanui

Taranaki Whānui ki Te Upoko o Te Ika (Alternate)

 

 

 

For the dates and times of 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, South Wairarapa District 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.

 

 

    


 

 

Komiti Ngā Wai Hangarua| Wellington Water Committee

 

Meeting to be held in the Hutt City Council Chambers, 30 Laings Road, Lower Hutt on

 Monday 29 November 2021 commencing at 1.00pm

 

ORDER PAPER

 

Public Business

 

 

1.       OPENING FORMALITIES - KARAKIA TĪMATANGA (21/1575)

Kia hora te marino

Kia whakapapa pounamu te moana

He huarahi mā tātou i te rangi nei

Aroha atu, aroha mai

Tātou i a tātou katoa

Hui e Tāiki e!

May peace be wide spread

May the sea be like greenstone

A pathway for us all this day

Let us show respect for each other

For one another

Bind us together!

 

2.       APOLOGIES

3.       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.

4.       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.    

5.       Chair's Statement (21/1577)

Verbal update by the Chair.

6.       Minutes

Meeting minutes Komiti Ngā Wai Hangarua |Wellington Water Committee,

24 September 2021                                                                                                  10

7.       water reforms – regional update

A verbal update will be provided at the meeting.

 

8.       Company Update (21/1907)

Report No. WWC2021/5/26 (4) by Wellington Water Limited                             22

CHAIR’s Recommendation:

“That the recommendation contained in the report be endorsed.”

 

9.       The 30 Year Investment Story for Wellington's Water (21/1909)

Report No. WWC2021/5/276 (4) by Wellington Water Limited                           41

CHAIR’s Recommendation:

“That the recommendations contained in the report be endorsed.”

 

10.     Service Delivery Strategy Update (21/1945)

Report No. WWC2021/5/277 (4) by Wellington Water Limited                           73

CHAIR’s Recommendation:

“That the recommendations contained in the report be endorsed.”

 

11.     Update on Asset Condition Assessment Programme (21/1948)

Report No. WWC2021/5/278 (4) by Wellington Water Limited                           77

CHAIR’s Recommendation:

“That the recommendations contained in the report be endorsed.”

 

12.     Quarter 1 Company Performance Report 2021/22 - Wellington Water Limited (21/1910)

Report No. WWC2021/5/279 (4) by Wellington Water Limited                           88

CHAIR’s Recommendation:

“That the recommendations contained in the report be endorsed.”

 

13.     Wellington Water Limited Annual Report to 30 June 2021 (21/1911)

Report No. WWC2021/5/280 (4) by Wellington Water Limited                         108

CHAIR’s Recommendation:

“That the recommendation contained in the report be endorsed.”

 

14.     Annual Letter of Expectation to Wellington Water Limited (21/1892)

Report No. WWC2021/5/267 (4) by the Chief Executive, Porirua City Council 174

CHAIR’s Recommendation:

“That the recommendations contained in the report be endorsed.”

 

15.     Appointment of Directors to Wellington Water Limited (21/1848)

Report No. WWC2021/5/282 (4) by the Democracy Advisor                             179

CHAIR’s Recommendation:

“That the recommendations contained in the report be endorsed.”

 

16.     Meeting Schedule for 2022 (21/1558)

Memorandum dated 1 November 2021 by the Democracy Advisor                   189

CHAIR’s Recommendation:

“That the recommendations contained in the memorandum be endorsed.”

 

17.     CLOSING FORMALITIES - KARAKIA WHAKAMUTUNGA (21/1576)

Whakataka te hau ki te uru

Whakataka te hau ki te tonga

Kia mākinakina ki uta

Kia mātaratara ki tai

E hī ake ana te atakura

He tio, he huka, he hau hū

Tīhei mauri ora.

Cease the winds from the west
Cease the winds from the south
Let the breeze blow over the land
Let the breeze blow over the ocean
Let the red-tipped dawn come with a sharpened air. 
A touch of frost, a promise of a glorious day.

 

       

Annie Doornebosch

Democracy Advisor, Hutt City Council

 


                                                                       1                                        24 September 2021

HUTT CITY COUNCIL

 

Komiti Ngā Wai Hangarua  | Wellington Water Committee

 

Minutes of a meeting held via Zoom on

 Friday 24 September 2021 commencing at 10.00am

 

 

 

PRESENT:

Mayor C Barry (Chair) (HCC)

(Via audio visual link)

Mayor W Guppy (Deputy Chair) (UHCC)

 

Mayor A Baker (PCC)

 

Mayor A Beijen (SWDC)

 

Ms L Rauhina-August (Taranaki Whānui ki Te Upoko o Te Ika)

 

Cr S Rush (WCC)

 

Cr J van Lier (GWRC) (until 11.52am)

 

APOLOGIES:                  Ms M Pomare, Te Rūnanga o Toa Rangatira

 

IN ATTENDANCE:        Ms N Hooper, Observer, SWDC

(Via audio visual link)      Ms W Walker, Chief Executive, PCC

Deputy Mayor G Emms (SWDC Alternate)

Deputy Mayor T Lewis (HCC Alternate)

Deputy Mayor H Swales  (UHCC Alternate)

                                          Mr C Crampton, Chief Executive, Wellington Water Limited

                                          Ms T Haskell, Group Manager, Network Development and Delivery, Wellington Water Limited (part meeting)

                                          Mr M Ford, Group Manager, Business Services/Chief Financial Officer, Wellington Water Limited

                                          Mr K Locke, Group Manager, Customer Operations Group, Wellington Water Limited (part meeting)

                                          Mr J McKibbin, Group Manager, Network Management Group, Wellington Water Limited

                                          Ms J Alexander, Group Manager, Network Strategy and Planning, Wellington Water Limited

Mr D de Boer, Director, Regulatory Services, Wellington Water Limited

Mr A van Paassen, Principal Advisor Strategic Communications, Wellington Water Limited (part meeting)

Mr M Hall, Manager, Commercial, Business Improvement and Procurement, Wellington Water Limited

                                          Mr G Dangerfield, Chair Wellington Water Board

Ms L Carroll, Member Wellington Water Board

Ms B McKerrow, Chief Executive, WCC

Mr D List, Project Director, PCC

Ms S Gainsborough, General Manager, Corporate Services, GWRC

Mr M Mendonca, Chief Resilience Officer, WCC

Ms J Livschitz, Group Chief Financial Officer, HCC

                                          Mr B Hodgins, Strategic Advisor, HCC

Ms K Glanville, Senior Democracy Advisor, HCC

Mr M Ackroyd, Service Desk Analyst, HCC

Mrs A Doornebosch, Democracy Advisor, HCC

 

 

PUBLIC BUSINESS

 

 

1.       OPENING FORMALITIES - Karakia TĪMATANGA     

Kia hora te marino

Kia whakapapa pounamu te moana

He huarahi mā tātou i te rangi nei

Aroha atu, aroha mai

Tātou i a tātou katoa

Hui e Tāiki e!

May peace be wide spread

May the sea be like greenstone

A pathway for us all this day

Let us show respect for each other

For one another

Bind us together!

 

2.

RESOLVED:    (Mayor Barry/Cr Rush)                                    Minute No.   WWC 21401

“That the apology received from Ms M Pomare be accepted and leave of absence granted.”

 

3.       PUBLIC COMMENT

There was no public comment.

 

4.       CONFLICT OF INTEREST DECLARATIONS

 

There were no conflict of interest declarations.

5.

Chair's Statement

Mayor Barry thanked members, iwi and Mana Whenua partners for their attendance at the recent 30 Year Investment Story Wellington Water Limited’s workshop.  He highlighted this had provided a good opportunity for further alignment and noted Wellington Water Limited (the company) would continue this work into the future.  He acknowledged frontline workers in the recent level 3 Covid lockdown and particularly support provided at the Paremata Wastewater Pipeline.  He thanked staff from the company for facilitating the vaccination of frontline staff.  He noted it would be important to conserve water in the coming months and asked residents to be mindful of their water usage.  He highlighted the impact to the Capital Programme as a result of Covid alert level restrictions.  He asked members to consider how this could be managed moving forward should there be further level 3 or 4 restrictions.  He thanked all parties who had been involved in the reform process and staff from the company for their contribution toward this.  

6.       MINUTES

Resolved:    (Mayor Barry/Cr Rush)                                       Minute No. WWC 21402

 

“That the minutes of the meeting of the Komiti Ngā Wai Hangarua |Wellington Water Committee  held on Monday, 19 July 2021, be confirmed as a true and correct record.”

    

7.

Water Reforms - Preliminary Regional View

The Project Director, Porirua City Council presented a Powerpoint presentation attached as pages 11 to 12 of the minutes.   

The Chief Executive, Porirua City Council considered central government would work quickly to make a decision on the proposed reforms.  She noted there was a large range of views from councils across New Zealand, with local engagement at the forefront of officers minds. 

 

In response to questions from members, the Project Director, Porirua City Council advised that if stormwater was split from the three waters programme, it would be difficult to manage capability and responsibilities as the systems were interlinked.  He highlighted the recent report from the Stormwater Technical Working Group.  He said this provided principles for identification of asset transfer based on whether the primary purpose of the asset or land was for three waters.  He noted that some land or assets that appeared to be for water purposes held other uses such as sports fields and this needed further consideration.   He considered the intent of the Department of Internal Affairs (DIA) once a reforms process was confirmed, would be to define a methodology for debt identification.  He said this would include a process for debt identification for each council and asset identification and transfer.   He noted this would form the basis of the due diligence process for identification of assets and land and the process for the transfer of this. He said DIA had, through the consultation period, been made aware of various rural water supply schemes.  He noted DIA now recognised a lot more work was required in this area and whether or not these assets would be included in the transfer process.  He said there would be common themes emerging from council submissions received and officers would be able to analyse these moving forward.  He noted consistent themes received to date included ensuring Wellington Water Limited was well protected moving through the transition process.  He further noted the delivery of the work programme needed to be maintained as well as managing the transition process itself.

 

In response to a question from a member Ms Rauhina-August noted Taranaki Whānui ki Te Upoko o Te Ika representatives had not yet had an opportunity to discuss the issues in detail and would be meeting next week.  She said timing restraints may be too short to provide a perspective at this stage.  In addition, Ms Hooper asked for further discussion to establish how the interests of the South Wairarapa District Council Māori Standing Committee could be considered within the Wellington Water Committee.  She asked if Andrea Rutene could become a member of the Wellington Water Committee representing Kahungunu ki Wairarapa within the Committee structure.

 

Members agreed to provide a submission to central government on the Water Reforms proposal, based on the following:

 

(a)    acknowledging the water reforms process;

(b)   noting that individual councils would provide their own submissions based on their own feedback;

(c)    highlighting the Committee’s willingness to engage moving forward, noting any potential impacts; and  

(d)   noting a supplementary letter would follow as the process was worked through,  which would include any issues identified by Wellington Water Limited as a result of the reform process.

 

 

 

 

Resolved:    (Mayor Barry/Cr van Lier)                                       Minute No. WWC 21403

That the Committee:

(1)           notes the report; and

 

(2)           asks officers to prepare a submission to central government based on discussion made at the   meeting.”

 

8.

Update on Taumata Arowai and Water Services  Regulation Disclosures (21/1459)

Report No. WWC2021/4/19 (3) by Wellington Water Limited

 

 

The Chair of the Wellington Water Board elaborated on the report.  He noted many of the reports for the meeting were focused on future issues as a result of the water reforms.  He said this would ensure the systems of Wellington Water Limited (the company) were as efficient and effective as possible moving forward. 

 

The Chief Executive of the company highlighted that when Taumata Arowai was established the company created a new Director of Regulatory Services position.  He noted this position took responsibility for providing disclosures to the company’s Board and owners.  He highlighted many of the reports to date were to ensure members were aware of the step changes required to meet Taumata Arowai’s requirements.   He said the company considered there was low awareness across New Zealand of what changes were required under the new legislation.  He advised the new operating model included a new regulatory system.  He said this required the company to provide assurance to the committee that they had a skilled labour force, were operating with standardised documentation and were continuously improving.   He highlighted the Martinborough Plant was currently compliant with Ministry of Health requirements and the company had used this plant in the report as an example of format only. 

 

The Director of Regulatory Services elaborated on the report.

 

In response to questions from members, the Director of Regulatory Services said Version 36 of the Draft Standards was received from Taumata Arowai approximately four weeks prior to the committee meeting.  He noted the company then included these Standards into its processes for gap analysis.  He advised Taumata Arowai was now using Version 45 of these Standards and the company was expecting some small changes.

 

In response to questions from members, the Chief Executive of the company said the company was planning to have a full list of disclosure statements prepared by the end of March 2022.  He noted the company would then have a Business Case sitting alongside this to address any funding issues.  He advised its current focus was on system design and infrastructure requirements.  He said this would include risks associated with this in terms of work needed over the next year and how to become fully compliant.  He advised a schedule of reporting requirements with timelines would be reported to the committee going forward.  He said representatives from the company would be meeting with Mana Whenua to discuss the cultural assessment of the impacts of the water reforms. 

 

Resolved:   (Mayor Barry/Cr Rush)                                           Minute No. WWC 21404

 

“That the Committee:

(1)               notes that the regulation of drinking water under Taumata Arowai is likely to begin on 1 April 2022;

(2)        receives Wellington Water Limited’s draft assurance disclosure for the South Wairarapa drinking water treatment plant; and

(3)        notes that the ongoing impacts on councils and Wellington Water Limited as a result of the Water Services Bill and regulations will be monitored and reported to the committee as the legislation progresses.”

 

9.

Company Update (21/1448)

Report No. WWC2021/4/20 (3) by Wellington Water Limited

 

The Chief Executive, Wellington Water Limited elaborated on the report. 

In response to questions from members the Chief Executive, Wellington Water Limited (the company) said that the company had established drought levels of service based on the minimum amount of water that could be supplied to customers.  He noted this was 100 litres per person per day.  He said this would allow the company to liaise with customers on how they managed water use at home.  He highlighted the company could then monitor water consumption at the same time.  He advised this would manage risks through the year rather than requiring restrictions in drought conditions only.  He said the company was expecting an audit opinion from Audit New Zealand next week.  He advised a copy of this would be distributed to members.  He noted the ability for Audit New Zealand to conduct the audit had been impacted by Covid and a lack of current resources.  

In response to questions from members, the company’s Group Manager, Customer Operations Group noted that the youth training initiative would be provided for young people from the Wellington region.   He said connections had been made with the Ministry of Education and careers advisors to facilitate this. He advised Mana Whenua, Māori and Pasifika youth would be included in the campaign to ensure there was a balance of opportunities provided.

 

Resolved:   (Mayor Barry/Ms Rauhina-August)                        Minute No. WWC 21405

 

“That the Committee receives and notes the report.”

  

10.

Update on Capital Works Programme (21/1450)

Report No. WWC2021/4/225 (3) by Wellington Water Limited

 

The Group Manager, Network Development and Delivery, Wellington Water Limited (the company) elaborated on the report.  She noted each council in the Wellington Region would have received a Capital Works Programme Pack from the company.  She advised this outlined different strategies the company would use for each council’s Capital Programme. 

 

In response to questions from members, the Group Manager, Network Development and Delivery said she would report back to the committee on the timeline for the Silverstream Pipe Bridge Project.  She said the company’s contractors were generally happy to stand down during Covid level 4 restrictions.  She advised during level 3 restrictions, the contractor companies could see what the risk was and were eager to stand-up their workforces.  She noted any future contractor workforce risks related to Covid level restrictions would also be addressed by the Construction Sector Accord.

 

In response to a question from a member, the Chief Executive of the company advised the company had reported outputs over the next three years.  He noted this would need to be delivered in a staged manner to ensure there was sufficient market capacity to deliver each council’s workstream.  He noted further consultation would be required with each council during their Long Term Plan process to ensure capacity requirements were considered.

 

Mayor Barry asked that members be included in discussions around the Infrastructure Accord.  He also asked that the matter be reported to the next committee meeting along with the Capital Works Programme Update.

 

Resolved:   (Mayor Barry/Mayor Beijen)                                   Minute No. WWC 21406

 

“That the Committee:

(1)   notes the progress of the programme to date; and

(2)   notes the delivery risks.”

 

11.

Update  on Market Conditions (21/1453)

Report No. WWC2021/4/226 (3) by Wellington Water Limited

 

The Manager, Commercial, Business Improvement and Procurement, Wellington Water Limited (the company) elaborated on the report.   He highlighted the current higher shipping costs and noted shipping companies were now reluctant to take long term shipping orders.  He advised the company would assess how to mitigate these costs within contracts going forward. 

 

In response to questions from members, the Manager, Commercial, Business Improvement and Procurement of the company advised these cost increases were the result of Covid, shipping costs, availability of shipping containers and the increase in the labour market.  He noted central government had introduced stimulus programmes across New Zealand so the demand for labour was high which drove costs up.   He considered if the three waters programme created an increase in expenditure, the pressure on the labour market would continue.  He said the graph contained within his report compared modelling based on projects completed in 2020 based on current pricing.

 

Resolved:    (Mayor Barry/Cr van Lier)                                    Minute No. WWC 21407

 

“That the Committee:

(1)           receives the report;

 

(2)           notes that there are ongoing indications that costs will continue to be unpredictable due to the current pandemic; and

(3)     notes that Wellington Water Limited is working with its suppliers and contractors           to minimise the impact of existing and future cost increases. “

 

12.

Performance  Report on Value for Money (21/1456)

Report No. WWC2021/4/227 (3) by Wellington Water Limited

 

The Chair of the Wellington Water Limited (the company) Board noted this was the first value for money report the company had prepared.  He advised the company would include this as regular report to the committee.  He highlighted a range of measures focusing on efficiency and effectiveness. He noted the Statement of Intent included benchmarking data on the company’s performance against Australian based data.  He said the company would like feedback from members and suggestions on other metrics to include over time.  

 

The Manager, Commercial, Business Improvement and Procurement of the company elaborated on the report.

 

In response to questions from members, the Manager, Commercial, Business Improvement and Procurement advised the modelling had created a series of questions to identify efficiencies.  He noted the company would report on modelling comparisons within New Zealand for the next committee meeting.

 

In response to a question from a member, the Chief Executive of the company advised the company asked the Water Industry Commission of Scotland to review the advice the company had given councils for their Long Term Plans.  He noted the Wellington region had plentiful water so producing and distributing water was relatively cost effective in comparison to Australian organisations.  He noted this did not mean the company could not find further efficiencies out of the network in the future.   He advised there was high expectation in the wastewater network in investment and planning and condition assessment which could bring costs down.

 

Cr Van lier left the meeting at 11.52am.

 

Resolved:      (Mayor Guppy/Cr Rush)                                      Minute No. WWC 21408

 

“That the Committee receives the September 2021 quarterly Value for Money report attached as Appendix 1 to the report.”

 

 

 

 

 

 

 

13.     Information Item

 

Wellington Water Committee Work Programme 2021 (21/1366)

Report No. WWC2021/4/122 (3) by the Democracy Advisor

 

In response to questions from members, the Chief Executive, Wellington Water Limited (the company) advised he was happy with the content of the Work Programme.   He highlighted five performance measures within the Annual Plan that were not qualified.  He noted two of these related to asset ownership and three were the responsibility of the company.   He said the latter were the customer service metric, response times and dry weather overflows.  He advised the company’s Board disagreed with Audit New Zealand’s current position that these should remain unqualified.  He advised this was with the exception of the water losses measure as there currently were not enough water meters in the network.

Mayor Barry highlighted the importance of keeping shareholders informed on all issues into the future.

 

Resolved:    (Mayor Barry/Mayor Beijen)                       Minute No. WWC 21409

 

That the work programme be noted and received.

 

14.

CLOSING FORMALITIES - KARAKIA WHAKAMUTUNGA

Whakataka te hau ki te uru

Whakataka te hau ki te tonga

Kia mākinakina ki uta

Kia mātaratara ki tai

E hī ake ana te atakura

He tio, he huka, he hau hū

Tīhei mauri ora.

Cease the winds from the west
Cease the winds from the south
Let the breeze blow over the land
Let the breeze blow over the ocean
Let the red-tipped dawn come with a sharpened air. 
A touch of frost, a promise of a glorious day.

  

 

There being no further business the Chair declared the meeting closed at 12.06 pm.

 

 

 

Mayor C Barry

CHAIR

 

 

 

 

 

 

CONFIRMED as a true and correct record

Dated this 29th day of November 2021

 

 

 

 

 

 

 

 

 

 

 

 

                                                                                                                  

 

 

 

 

 

 

 

 

 

 


                                                                                       1                                                 29 November 2021

Wellington Water Committee | Komiti Ngā Wai Hangarua

08 November 2021

 

 

 

File: (21/1907)

 

 

 

 

Report no: WWC2021/5/26 (4)

 

Company Update

 

 

 

 

 

Purpose of Report

1.    To provide an update on three waters activities across the metropolitan area of Wellington and the South Wairarapa District Council area. 

 

 

Recommendations

That the Committee receives and notes the report.

 

Key Messages 

 

2.    The discharge of bio-solids to the environment on 19 August 2021 at the Porirua Wastewater Treatment Plant (WWTP) was the latest issue following ten infringement/abatement notices. Unlike the ten notices, the discharge of bio-solids was foreseeable, avoidable and reportable, none of which occurred. What is of most concern is that the event is fundamentally misaligned with our values and with our environmental outcomes.

3.    As a consequence, we announced an independent review of our WWTP contract with Veolia. A Steering Group made up of Council, iwi/Māori, Veolia and Wellington Water Limited (the company) representatives will receive recommendations on the way forward, which will not include continuation with the status quo. This is a challenging review to ensure we meet the requirements for discharge to the environment. 

4.    We are forecasting capex delivery between the low and midpoint of the delivery range ($145M-$169M). The capex programme is experiencing head winds as Aotearoa NZ wrestles with a chronic labour shortage, border logistics issues and inflationary pressures. These issues are mitigated by the collaborative panel arrangements we run. 

5.    The company is experiencing increased turnover as we try to grow the organisation to deliver on councils’ larger programmes. The buoyant labour market, and the ongoing uncertainty with COVID-19 and Water Reform are producing an unsettling environment for our people. 

2021/22 Statement of Intent (SOI) 

 

6.    The Statement of Intent is our formal agreement with the Wellington Water Committee. This document lays out the long run strategy for the company and the results the company wants to achieve over the next one to three years.  

7.    At the end of Quarter 1, progress has been satisfactory. Our customers are receiving safe water across the metropolitan area of Wellington and heading toward this state in the South Wairarapa District Council area. Customer satisfaction with network activities was above benchmark for the quarter. The single most unsatisfactory result is the ongoing trend of non-compliance of the discharges from the region’s Wastewater Treatment Plants. 

8.    Progress against our Statement of Intent measures is provided in Appendix 1 attached to the report. 

Three Waters Priorities 

Capex Delivery 

 

9.    Across the six council owners, $600M of capital expenditure (capex) is required to be delivered over the next three years.  This is some $200M more than the previous 2018/21 Long Term Plan (LTP).  Currently, delivery is constrained by our capacity and that of our delivery partners – consultants and contractors. 

10.  To achieve the overall target of $600M of capex over three years, the company has staggered the delivery roughly along the lines of $169M; $196M; and $228M over the next three years.  Progress in 2021/22 has been satisfactory, with expenditure to date ahead of last year ($131M delivered) but we are experiencing headwinds with COVID-19, material supplies and labour shortages.  We are also behind on our planned targets for awarding construction contracts for the current year.  This means we most likely will deliver a capex programme somewhere in the bottom half of our range. We will be more confident in our forecasts at the end of quarter two. 

11.  Prioritisation of capex activities is standard practice for an organisation with constrained resources.  Prioritisation allows entities to invest in resources which will result in the greatest benefits for customers.  Provision of the core services is given the highest priority, i.e. operations, maintenance, and renewals, before service improvements are considered. 

12.  Councils have discretion over the amount of funding provided to these improvements, and the choice of which improvements to pursue, so it is important that there is a framework in place to help to make these choices. The company has established a prioritisation framework for these projects that considers strategic alignment, criticality and urgency and applied it across the six owner councils, and collectively. An outline of the process and the collective list of the “top 11” projects (highest impact and urgency) is provided in Appendix 2 attached to the report. 

13.  The main role of the framework is to guide governance and oversight, ensuring there is appropriate risk management and resourcing to obtain the desired outcomes. Projects ranked lower down the list are still being resourced and managed within each council’s own funding.  

14.  The prioritisation framework also provides a basis for considering changes to the programme such as new projects required in the event of an asset failure, an increase in project costs that impacts on overall budgets, or the need to reprioritise resources in the event of constraints. The identification of a new, very high impact and very high urgency project would see the “top 11” become a “top 12” rather than an existing project dropping down the ranking.  

15.  Progress reports on each council’s capital programme are provided directly to them. The update below describes progress with the three highest-ranked projects to demonstrate the nature of the projects and the risks being managed. The first two projects have impacts for more than one council, and the third reflects the fundamental importance of providing safe drinking water: 

a.       Silverstream Pipebridge Seismic Upgrade: 

 

i.   The objective of the project is the replacement of the bulk water main that crosses Te Awa Kairangi (Hutt River) to improve the resilience of the water supply network to Porirua City and North Wellington.  This project is critical to address the seismic resilience of the water supply to these cities as the current pipeline over Te Awa Kairangi and the network either side is in poor condition. 

ii.  There are two key activities underway at present: 

·  The RMA consent was notified on 4 November 2021, and 

· We have a tender process underway with the two shortlisted  contractors that closes on 1 December 2021.  

iii. The key risk to the project is around affordability – the current estimate range is between $75M and $85M, but there is risk that the price will increase in the current market.  Greater Wellington Regional Council (GWRC) has three major projects, all in the top 20 priority project list that are due to be in construction in the next three years. In order to mitigate the cost risk, the project works have been split into four sections that can be delivered in stages.    

iv. Other activity of interest is that the detailed design is nearing completion and conversations are underway with Hutt City Council around support of the cycleway across the bridge. 

b.        Te Mārua Treatment Plant Upgrade: 

 

i.   The project objective is to upgrade the Te Mārua Water Treatment Plant to achieve the plant’s design maximum instantaneous plant flow of 140 megalitres per day under all foreseeable raw water quality conditions. Without this upgrade we are unable to meet the level of service for summer water supply resilience. 

ii.  The concept design is now complete and we are moving into detailed design phase.  Looking forward, we are working through the procurement strategy.  We have had feedback from the market that the traditional design and build approach will not be attractive to suppliers, so we are looking to split the work into four bundles, with a mix of using our Wellington Water Contractor Panel for the contract works and specialist contractors engaged for the plant. We will be looking to award contracts and start work on site before the end of the 2021/22 financial year. 

iii.   The key risk to this project is the market – with the revision to the contracting method outlined above, there is a high likelihood that the cost will be greater than the early stage estimate currently in the Long Term Plan. 

c.             South Wairarapa District Council (SWDC) Treatment Plant Compliance:

 

i.          The Waiohine and Memorial Park Water Treatment Plant projects are projects critical to achieving drinking water compliance in SWDC. 

ii.  Works are complete on an additional fourth bore at the Waiohine Water Treatment Plant, and commissioning work is ongoing on the treated water reservoir.  We are anticipating bringing the additional storage into use prior to Christmas.  Temporary UV and pH correction at the Memorial Park Water Treatment Plant has been successful in providing additional safe drinking water barriers.

iii. Current site construction works are focused on the re-alignment of the swimming pool wastewater lateral, which poses a contamination risk to the bore. 

iv. The next phase of works at the Memorial Park Water Treatment Plant will be the installation of the permanent containerised Water Treatment Plant currently forecast for completion Quarter 1 FY22-23. 

v.  The key issue with the project has been the delay in delivery so far.  The team has put a lot of effort into the appointment of additional senior staff and enhanced communication of the importance and urgency of the projects and they are now getting back on-track. 

Construction Sector Accord 

 

16.  The Construction Sector Accord (the Accord) is a joint commitment from government and industry to work together to create a high performing construction sector for a better New Zealand.   

17.  Although the Accord is government focused, it sets out goals, outcomes and principles that resonate with the Company values and whānau approach we share with the Consultant and Contractor Panels.  A number of our contracting whānau are members of the Accord. 

18.  The company is part of the Construction Clients Group (CCG), an industry body that provides an independent, collective voice for public and private sector clients with the construction supply chain, government and other key stakeholder groups.  The CCG is a supporter and promotor of the Accord for their government members. 

Workforce Skills 

 

19.  Across the three waters frontline workforce we are in the process of introducing a graduated structure.  The objective is to provide clear requirements for training and development and pathways for succession, ensuring we lift capability across the workforce and make the opportunities more attractive.  In general terms the graduated structure progresses from a trainee serviceperson, to serviceperson, qualified serviceperson and ultimately certified service person.

20.  The first of our Infrastructure Skills Centre programmes is still on track to be held in February next year.  The six-week accelerated training opportunity is aimed at school leavers and youth entering the sector for the first time. 

       We have set ambitious targets to attract 50% female, 30% Māori and 15% Pacifica to the programme. 

21.  No further progress will be made on developing a Regional Skills Training Facility until funding is made available.  

Water Reform 

 

22.  The Government announcement that the establishment of four water entities will be mandatory takes one bit of uncertainty away from staff. However, overall, the company is experiencing stressful times at the moment as it deals with expansion to meet the increased programmes from councils, the uncertainty of water reform and the impacts COVID-19 has on doing day-to-day business. 

23.  The company is focused on supporting our people, providing context for all the changes surrounding us and keeping people engaged in what they do. Additional floorspace has been secured in the TAB building for our expanding capex teams and our Network Management teams as they deal with the new drinking water regulator. Some new space also gives us the opportunity to create collaborative spaces where the Company and all its suppliers can meet and work on accelerating the capital programme. 

Regulation Update 

 

24.  At your meeting we will introduce our new Director of Regulatory Services, Charles Barker. Charles will manage a small team working across the organisation to ensure the regulatory system we are setting up meets all the requirements of Taumata Arowai. 

25.  At the last Wellington Water Committee meeting we gave you an example of a disclosure statement for the Martinborough plant. Early next year, Charles will lay out the full disclosure reporting plan for councils and the Wellington Water Committee. 

26.  Taumata Arowai has shifted back its full implementation date to 1 July 2022. The Water Services Bill has been passed into legislation and Taumata Arowai will consult with water services entities on the proposed requirements. We will input on behalf of owner councils. 

Company Risk Profile 

 

27.  Appendix 3 attached to the report contains the current risk profile for the company.

28.  The most critical and immediate issue is to establish drought levels of service for customers to protect our water, our customers and businesses from the effects of severe drought.  

Other Important Matters 

 

29.  Stimulus Funding Programme: the most recent financial updates report total expenditure to date of $26.3M out of a total of $47.3M. The $21M still to be expended represents a cashflow of roughly $3M per month. 

30.  The approach to three waters in the 2024/34 LTP will be interesting this year. Councils will need to complete the planning for this but will not, ultimately, be funding this work. This raises the question as to whether the LTP looks similar to the current plan or is more expansive taking account of greater investment in water quality and decarbonisation activities. 

 

 

31.  We will use the same process as previous years, using the 30-year plan as the direction of travel, followed by: 

a.  Early signals to councils; 

b.  Options; and 

c.  Preferred options. 

Drought Customer Service Standards 

 

32.  Recognising that we are carrying an elevated water supply shortfall risk in relation to both our water source availability during drought (water security) and network capacity during periods of hot weather and high demand (water reliability), we have moved to define ‘drought customer service standards’. These are levels of customer demand that can be sustained under plausible scenarios of constrained water availability, expressed in terms that are relatable to customers, ie acceptable length of showers, numbers of washing loads, hosing times. 

33.  Establishing such standards is a crucial step in addressing the prospect of water shortages, particularly while we move to reinforce our drought resilience level of service. Once finalised, the standards will be communicated to our customers to help manage expectations and demand through periods of drought and system stress. Communications will relate the standards back to water restrictions and water conservation to ensure cohesive and consistent messaging.

Annual Plans 

 

37.  The company is engaged with councils and is providing updated advice on Annual Plans to all councils through November. Key challenges for councils include: the investment gap to meet reactive and critical planned maintenance; emerging risks and cost pressures; phasing for a sustainable capital delivery programme; and delivery headwind pressures.  

38.  In addition to the known operational investment gaps a regional $5M to $7M per annum cost pressure is emerging to provide safe water assurance, continuing asset information and data improvements, address cybersecurity and ongoing proactive leak management repairs. 

39.  The Government’s “better off” reform support funding, $39M regionally, has been suggested as an opportunity toaddress funding challengesincluding mitigating developing risks.   

 

 

 

 

 

 

 

 

 

 

 

Appendices

No.

Title

Page

1

Quarter 1 Wellington Water Statement of Intent Results

30

2

Wellington Water Prioritisation of Capital Funded Activities

34

3

Wellington Water Key Risks Performance Summary Quarter 1 2021-2022

37

    

 

 

 

 

 

 

 

Author: External Author (Wellington Water Ltd)

 


Attachment 1

Quarter 1 Wellington Water Statement of Intent Results

 





Attachment 2

Wellington Water Prioritisation of Capital Funded Activities

 




Attachment 3

Wellington Water Key Risks Performance Summary Quarter 1 2021-2022

 





                                                                                       1                                                 29 November 2021

Wellington Water Committee | Komiti Ngā Wai Hangarua

08 November 2021

 

 

 

File: (21/1909)

 

 

 

Report no: WWC2021/5/276 (4)

 

The 30 Year Investment Story for Wellington's Water

 

Purpose of Report

1.    To obtain the Wellington Water Committee’s endorsement to release a public discussion document to help communicate the region’s future three waters investment needs.

 

Recommendations

That the Committee: 

(1)   endorses the publishing of the attached draft discussion document (attached as Appendix 1 to the report) to the public, subject to incorporating the Committee’s feedback, final proofing and formatting consistent with the draft design concept (attached as Appendix 2 to the report); 

(2)   notes the release of the discussion document will be supported with associated communications and engagement activities delivered through Wellington Water Limited’s website and social media; 

(3)   notes Wellington Water Limited will be working with the shareholding councils’ communications teams to obtain their support for the public engagement, and would also like to work with iwi Mana Whenua to ensure their perspectives are represented as part of this engagement; 

(4)   notes the content of the discussion document is likely to be of interest to the public and the engagement will inform planning for the 2024-34 Long Term Planning period; and

(5)   notes the publishing date for the discussion document will most likely be early in the 2022 calendar year. 

 

Background

2.    The region has aspirations to improve its three waters services, and to reduce the impacts of these services on Te Mana o te Wai - the health and mauri of the water - and on the wider environment. The region shares the services and the benefits of enhancing Te Mana o te Wai, so needs to act collectively to invest in and improve the services. 

3.    Achieving these aspirations will require a significant increase in investment above the existing levels of funding over a sustained period. The region has set out a pathway for the next 30 years, giving a sense of the scale and scope of the issues and how they might be addressed. 

4.    This will require us to move away from existing approaches, and to think more carefully about how we use and interact with water and how we design our houses, towns and cities. The benefits of this change include improved urban environments, healthier water and ecosystems, lower carbon emissions, improved resilience, and reduced capital expenditure in large-scale, “hard” infrastructure. For example, using water more efficiently, including understanding how water is being used at an individual level, can avoid or defer the need for investment in new lakes and dams, treatment plants, pipes, and reservoirs. 

5.    On 30 September 2021, the Committee, the Wellington Water Board, and invited iwi Mana Whenau held a workshop to discuss and agree the regional investment direction and key milestones for the three waters services over the next 30 years. The purpose of the workshop was to seek input to and support for this investment direction ahead of the proposed release of a public discussion document.  

6.    The release of the discussion document will demonstrate to the public and wider stakeholders that the region has a clear, long-term plan for the three waters services. It will also build upon the signalling that commenced in the 2021/31 Long Term Plan process on the significant investment required if the region is to achieve its aspirations for water and the three waters services. Wellington Water Limited’s (the Company) customer feedback surveys indicate there is a high level of interest in understanding the future plans for the water services. 

7.    The Committee supported the investment direction presented to the workshop and provided some feedback on aspects that they considered should have greater emphasis. This included the need to act collectively as a region. This feedback has been captured in the draft discussion document.  

 

 

 

 

 

 

 

 

The water services are important to the public, but it is hard for them to engage in discussions on expectations, planning, and investment 

 

8.    Infrastructure asset management has a much longer timeframe than the current local government planning cycle of 10-year plans updated every three years. Additionally, while councils do work hard to engage communities on their plans, and keep 30-year infrastructure asset management plans, these documents are often so comprehensive it is difficult for members of the public to find a way in, to understand the issues and what needs to be done, and to participate in problem-solving activity that affects their communities. 

The region has done the investment planning, and it aligns with customers’ aspirations 

9.    The challenge here is not the absence of planning – long-term investment planning underpinned The company’s advice to councils for their 2021-31 long term plans (LTPs). This planning was developed around a set of strategic priorities that align with key environmental and economic drivers affected by water network operations: freshwater quality standards; carbon reduction targets; drinking water supply and other services that will support growth; and looking after existing infrastructure.  

10.  These strategic priorities also reflect the public’s aspirations for their water services, as expressed through their feedback on LTPs, through customer surveys, and through the increasing range of national-level standards and regulations. The aspirations are fundamental to the services, and are expected to endure for a long period of time. 

11.  The proposed investment direction was tested wth the Wellington Water Committee, Wellington Water Board, and invited iwi representatives at a workshop on 30 September 2021. The workshop participants requested that the discussion document capture the need to act collectively as a region, especially on key opportunities such as universal water meters and the adoption of water sensitive design practices. There was also a strong interest in pursuing distributed technology approaches ahead of major capital infrastructure investment; pursuing the required transformation faster than what had been outlined in the discussion document; and an increased focus on customer education. 

12.  The company acknowleges that the workshop and engagement on the plan was not well constructed for iwi Mana Whenua participation. The company will ensure future workshops include appropriate pre-engagement and co-design.  

13.  It is important that an iwi Mana Whenua perspective and their interest in improved outcomes is presented as part of this public engagement. The company would like to work with iwi Mana Whenua to facilitate this. Drawing on the work undertaken in the Whaitua process to describe iwi Mana Whenua interests and values provides a useful starting point and avoids some duplication of effort. 

The release of a discussion discussion document creates an opportunity for focussed public engagement 

14.  The company conceived the development of the 30-year investment direction as a non-technical presentation of issues facing the three waters over the next three decades and beyond, to help demonstrate the work that has been done (including the planning) and the work that needs to be done (including the investment).  

15.  The discussion paper serves dual purposes: to capture and express the longer term thinking that has already been completed in order to provide strategic investment advice now; and to provide visibility to community of the scale and scope of these issues in a way that not just helps them make sense of the issue, but offers them opportunities to get engaged in addressing them in the future.  

16.  Creating and promoting this discussion with the community will also enable more informed and engaged discussion when investment is proposed for the next investment period, i.e. the 2024/34 LTP or the equivalent process completed by any future Water Services Entity. 

17.  It is always a challenge to present complex information to lay people in a way that invites participation. The approach taken has been to make the discussion document easy to engage with, and to have a ‘fresh’ look rather than being presented in a report-style format. This includes the minimum use of prefatory material, in an effort to get straight to the heart of the matter, and to speak to the audience in an open, non-technical way. 

18.  Additionally, to give the discussion document an explicit purpose, the discussion document asks questions of its readers. These questions invite people to consider their own role or position on the issue at hand. The purpose is as much about helping communities recognise their own agency, their own roles in these issue, as it is about gaining feedback. The questions are reasonably provocative, to better stimulate discussion.  

19.  The proposed text of the discussion document is presented in Appendix 1 attached to the report. A sample of the proposed concept is presented in Appendix 2 attached to the report. We would welcome comment from the Committee on whether the structure, format and approach are likely to inform, and generate interest and input from the community, while also demonstrating that planning for the future that has been occurring. 

The discussion document will be supported by wider communications and engagement 

20.  The release of the story marks the first stage of public engagement looking towards the 2024/34 investment period. To get the maximum benefit from the discussion document it should be released when the public is best-placed to engage with it.

       The country has experienced a challenging year managing the risks and consequences of COVID-19, so the intention is to release the discussion document after the summer break in the first quarter of the 2022 calendar year. 

21.  The company’s Communications Team is in discussion with the councils’ communications teams on the overall engagement approach to undertake. At a high level, our proposed approach will be to make the discussion document accessible and engaging, and provide numerous ways for people to provide us with their thoughts and feedback. In addition to having the discussion document available on all of The company’s and councils’ online channels, consideration is also being given to targeted engagement with key community interest groups, hosting opportunities for people to provide face-to-face feedback, and taking advantage of public engagement tools and platforms to help gather feedback and sentiment.  

22.  As the engagement on the discussion document needs to be done on a regional basis, the communications approach will take into consideration other public consultations/engagements that our councils have planned during and after this period such as 2022/23 annual planning. This could also potentially include submissions on the draft water reform legislation, that is expected to enter the House in mid-December.   

23.  Engagement on the discussion document may provide insight that is relevant to the councils’ pending 2022/23 Annual Plan processes. The Company will work with the councils’ planning teams to ensure the proposed Annual Plans are consistent with the investment direction set out in the discussion document and incorporate any relevant public feedback.    

Appendices

No.

Title

Page

1

Wellington Water 30 Year Draft

46

2

Wellington Water 30 Year Discussion Document - Draft Concept Design

57

    

 

 

 

 

 

Author: External Author (Wellington Water Ltd)

 

 


Attachment 1

Wellington Water 30 Year Draft

 












Attachment 2

Wellington Water 30 Year Discussion Document - Draft Concept Design

 

















                                                                                       1                                                 29 November 2021

Wellington Water Committee | Komiti Ngā Wai Hangarua

11 November 2021

 

 

 

File: (21/1945)

 

 

 

 

Report no: WWC2021/5/277 (4)

 

Service Delivery Strategy Update

 

Purpose of Report

1.    To provide an overview to the Wellington Water Committee of Wellington Water Limited’s (the company) new Service Delivery Strategy for the period of 2021-24. 

Recommendations

That the Committee: 

 

(1)   receives the report;  

 

(2)   notes that Wellington Water Limited has refreshed its Service Delivery Strategy;

  

(3)   notes that Wellington Water Limited is extending arrangements with its contractor and consultant panels to enable continuity of service through to 2026; 

 

(4)   notes that the regional wastewater delivery model is under review; and

 

(5)   notes that we continue to focus on increasing the capability and capacity of workers in our sector to deliver our programmes of work.  

 

Key Messages

2.    Our refreshed strategy continues to centre on the ongoing improvement of our current models and will improve the capability and capacity of our suppliers.  

3.    The strategy broadens our focus to encompass wider objectives, such as: training; enhancing our relationship with iwi Mana Whenua; and the environment.   

4.    The current model for wastewater treatment plants is being reviewed. 

5.    We intend to extend arrangements with our contractor and consultant panels to enable continuity of service through to 2026. 

Background

6.    A refreshment of the current Service Delivery Strategy was required to respond to our changing environment and to provide assurance to our suppliers and councils that the service delivery models established in the previous strategy would continue. 

7.    An independent review was undertaken as part of this which pinpointed some areas for improvement.  

8.    The company took a collaborative approach to the revision of the refreshed strategy, which included a series of facilitated workshops with both internal and external stakeholders over the months of September and October 2021.   

9.    This activity revealed confidence in our models which continues to ensure that we have the capacity and capability to deliver services, but that we would benefit from broadening our focus to encompass wider objectives, such as: training; enhancing our relationship with iwi Mana Whenua; and the environment. 

10.  Insights from these sessions were used to finalise the final strategy and specific actions which can be taken over the next three years. The refreshed strategy was approved by the Wellington Water Board at its November 2021 meeting. 

Service Delivery Strategy 2021-24

11.  The strategy is centred on the vision “Working together to ensure service delivery is in the best position to generate long-lasting benefits for our community”, providing the necessary focus and direction to improve upon our service delivery in the coming years.  

12. A set of strategic foundations have been identified to achieve that vision, along with corresponding outcomes, outputs, and measures to ensure the necessary activities are undertaken to achieve the strategy. 

13.  Even though this strategy is for three years, the foundations that are established should endure beyond 2024.  

14.  The independent review considered value for money and highlighted the success and benefits of the consultant and contractor panels. To ensure capability and capacity are retained and able to be increased, the panel models will continue, and the company will seek to extend the current agreements through to at least 2026. The drivers behind the extension include enabling continuity of service for a growing programme of work, right sizing our contracts to take into account value for money, and to provide greater certainty in supplier forward planning.  

15.  We continue to focus on increasing the capability and capacity of workers in our sector to deliver our programmes of work. Training and empowering the next generation of workers will lead to an increased supply of skilled and talented staff and allow for sufficient succession planning. Capability and capacity will also be increased by the establishment of a regional training centre for frontline workers, subject to the provision of funding. The company will see this in action through developmental workforce strategies and continued support of apprenticeship programmes.  

16.  Concerns relating to the model and performance of the current wastewater treatment service delivery arrangements have been raised. As part of the refreshed Service Delivery Strategy, the regional wastewater delivery model is now under review. This review will be completed by the end of the calendar year.  

17.  The company will be working with Mana Whenua to establish direct contracting relationships, and we will improve upon it by developing a contracting and services model with Mana Whenua.  

18.  Broader environmental outcomes will be delivered with carbon reduction and recycling strategies required from suppliers. It is our expectation that all suppliers will have a carbon reduction strategy and a disposal strategy, which includes recycling, to reduce the environmental impact. 

19.  An overview of key components within the Service Delivery Strategy 2021-24 is attached as Appendix 1 to the report. 

Appendices

No.

Title

Page

1

Service Delivery Strategy 2021-24- Strategy Overview

76

    

 

 

 

 

 

Author: External Author (Wellington Water Ltd)

 

 


Attachment 1

Service Delivery Strategy 2021-24- Strategy Overview

 



                                                                                       1                                                 29 November 2021

Wellington Water Committee | Komiti Ngā Wai Hangarua

11 November 2021

 

 

 

File: (21/1948)

 

 

 

 

Report no: WWC2021/5/278 (4)

 

Update on Asset Condition Assessment Programme

 

Purpose of Report

1.    To give the Wellington Water Committee an update on the condition assessment programme and provide key insights. 

Recommendations

That the Committee: 

 

(1)   receivesthereport;

 

(2)   notes that with an asset base of $6B, approximately $10M of condition assessment should be conducted annually; 

 

(3)   notes that expenditure of this budget would stress existing resources nationally and would require a sector-wide uplift; 

 

(4)   notes that the approximately $2.5M per annum of condition assessment work is being completed across the region, excluding the assessment of the Very High Criticality Assets which has been funded from the Government stimulus package; and

 

(5)   notes that the risk of unplanned service failures and interruptions occurring across the region therefore remains. 

 

 

Key Messages

2.    Understanding the condition of the region’s water assets is a fundamental part of a prudent asset management system. However, historic under-investment in the region’s water assets, including condition assessment, has resulted in a low understanding of the health of the assets, an increased risk of service failures and consquent poor customer outcomes.  

3.    Wellington Water Limited (the company) is part-way through a four year programme worth a total of $17.9M ($10.2M Government stimulus funding and $7.7M council opex budgets) to assess the condition of the most important water assets and to put in place plans to address the findings. 

4.    As assets needing action and attention are identified, they are being programmed for renewal or maintenance as appropriate. All assessed assets have some further activities programmed, including those in good condition (which only need their next inspection to be scheduled). 

5.    In order for the initial health assessments to be completed, and for a rolling programme to reassess asset health to be implemented, a condition assessment budget of $10M per year  (in addition to planned maintenance) is considered an appropriate level of investment for the size of our asset base.  

6.    Expenditure of $10M per year on condition assessment would require significant capability uplift nationally. If the current LTP funding of approximately $2.5M per year for condition assessment programmes continues,  it will take 8 years for the region to have an initial understanding of the health of the most critical assets, and this current constraint will continue to limit the effective planning of asset renewal programmes. 

7.    Condition assessment does not provide a complete picture of asset health, and there will always be some level of risk of unplanned failures. That risk, and the associated costs to customers of service failure, will remain relatively high at the current level of investment in health and condition assessment. 

Background

8.    Unplanned critical asset failure is a key risk to meeting customer service expectations. The most critical assets provide essential services that support the health and livelihoods of the region’s communities and the environment. Unplanned failures can have significant impacts that are difficult to mitigate. Recent examples include the discharge of material volumes of untreated wastewater into the Wellington and Porirua harbours due to failures in trunk mains running through the CBD and from the northern suburbs, respectively. 

9.    Understanding the health and condition of these assets is essential for minimising the risk of unplanned failures. These assessments, conducted periodically over the lifetime of the assets, enables optimal decision-making on when to maintain or replace them. They also help to optimise the cost of delivering the services by ensuring that these interventions are undertaken at the ideal time. Assets can be replaced when this provides greater net benefit than continuing to maintain them. They can also be maintained in a manner that prolongs their operating life and performance.  

10.  The collection of robust asset condition data, and its use in planning renewals, will also, over time, address the “matter of emphasis” identified in the audits of the councils’ 2021 Long Term Plan Consultation Document earlier this year. 

11.  The company applies a criticality framework to determine which condition assessments are required, and when. Very high and high criticality assets have significant consequences should they fail and understanding their health and condition is essential to how they are managed. The very high and high criticality assets include: 

a.  many (but not all) of the water treatment plant components that have no alternative or contingency should they fail; 

b.  35% of all pipes by length; 

c.  all pumping stations; and 

d.  all reservoirs. 

12.  The programme presents a range of challenges including the need to complete physical inspections in complex environments without disrupting services to customers. The majority of the pipeline assets being assessed, and some of the reservoirs, are buried underground and are constrained in their ability to be taken out of service. The wide variety of asset types, materials, and operating environments requires the use of a range of techniques. All pipeline assets receive a preliminary assessment through peer-to-peer workshops prior to inspection. 

The understanding of the assets, and how to assess them, has increased

13.  The condition of the assets is graded on a scale from 1 to 5, with those in “very good” condition scoring as grade 1 and those in “very poor” condition and requiring urgent replacement scoring as grade 5. Those at grade 1 do not require further action other than the scheduling of a further inspection (potentially many years into the future) while those at grade 5 need to be scheduled for renewal or maintenance, depending on the nature of the failure.   

 

14.  The assessments completed to-date include all the pump stations, the majority of the reservoirs and water treatment assets, and around 15% of the VHCA pipeline length. The latest progress update is provided as Appendix 1 attached to the report, with a high-level summary provided in the table below: 

 

 

 

 

 

 

 

 

 

Asset type 

Number of VHCA assets 

% of VHCA assessed 

Assets identified as very poor (‘grade 5’) condition 

Pump stations 

84 

100% 

6 (7%) 

Reservoirs 

79 

75% 

3 (5%) 

Treatment plant 

560 

85% 

11 (2%) 

Pipelines (all waters) 

465 km 

15% validated in the field  
(100% have preliminary assessments) 

15 km (3%) 

 

All reviewed assets have next steps programmed, regardless of their condition 

 

15.  All assets have further activities programmed as soon as their condition assessment has been completed. For those assets in: 

 

a.  Very good and good condition, the programmed activity might simply be to schedule the next inspection. For those that are showing very low rates of deterioration this could be many years away (see the example in Appendix 2 attached to the report). 

 

b.  Moderate-to-poor condition, the programmed activities might include some relevant maintenance as well as further inspections; and 

 

c.  Very poor (Grade 5) condition, attention is required. This might be the programming of relevant maintenance and repairs (for example, to patch holes in reservoirs that are a contamination pathway) or the programming of a renewal within the coming 3-6 year investment period (as has happened with the wastewater mains in the Wellington CBD and at Paremata). 

 

The programme will be progressively expanded within the limits of the available funding 

 

16.  Based on the assets’ current age, around 50-60% of the three waters network theoretically requires renewal in the next 30 years.  

 

17.  Condition assessment is an ongoing process. The rate of deterioration changes as an asset ages and is influenced by its operating conditions. The frequency of assessment is dependent on the asset type and how far it is through its life. This VHCA programme is capturing recognised international good practice and the programme is more advanced than has ever been previously applied in the New Zealand water sector, but it is only the first step towards a more comprehensive approach to condition assessment across all asset criticalities and classes that will need to continue as required for the lifetime of the assets.

 

 

  

The extent of the assessments of the ‘High Criticality Assets’ will be limited by the available funding and capability 

 

18.  Recent evidence suggests that the optimal level of investment for a water utility is in the region of 1-2% of the total value of the assets, which in the region equates to approximately $60-120M per annum for planned maintenance and condition assessment - noting that our current budgets are approximately $12.5M per year for planned maintenance and condition assessment. 

 

19.  The assessment of VHCA (refer to Appendix 3 attached to the report for programme status) has been largely enabled by access to the Government stimulus funding, with $10.2M available over the 2020/22 period. A reduced level of funding is available for the 2022/24 period. $7.7M of council opex was provided for the 2021/24 LTP period, some of which has already been used for the VHCA programme.  

 

20.  This reduced level of funding will determine the scope of the High Criticality Asset (HCA) programme. It is currently anticipated that 40% of the total VHCA and HCA asset base will have been assessed by the end of June 2024 (including all VHCAs). While the approach will be to seek to prioritise assets where the greatest risk is anticipated, this will still mean that the condition and associated risks for a large proportion of the HCAs will not be fully understood. 

 

21.  There is currently limited suitably skilled resources and expertise to support a significant expansion in the assessment of underground assets. For example, there is only one company in New Zealand that is currently able to provide analytical services for the laser profiling of pipes, which is a critical technique for pipe assessment. Addressing these capability shortcomings will take some time, as they will need to have confidence in the ongoing need for these services and build up the relevant skills. 

 

22.  Ultimately, the programme also needs to be expanded to help the region understand the deterioration rates of the medium, low, and very low criticality assets. There is not an aspiration to have complete condition data for these assets but enough information is needed to be able to make effective decisions about the maintenance and replacement of the various asset classes. With sufficient, good quality information it will be possible to start to predict how they will deteriorate over time. The data for these asset categories can also be collected opportunistically when other maintenance works provide easier access for inspection and sampling. 

 

23.  In the coming years better representative understanding of medium to low criticality assets will be built from the analysis of historical information, targeted pipe sampling and lab testing, and capturing condition insights during everyday operational work. However, the extent of this activity will be limited by the availability of funding and the need to prioritise this funding towards understanding the higher criticality assets. 

 

 

Appendices

No.

Title

Page

1

Summary of VHCA Health and Condition Assessments

83

2

Examples of Asset Condition Insights

84

3

Current Status of VHCA Programme

87

    

 

 

 

 

 

Author: External Author (Wellington Water Ltd)

 

 

 


Attachment 1

Summary of VHCA Health and Condition Assessments

 


Attachment 2

Examples of Asset Condition Insights

 




Attachment 3

Current Status of VHCA Programme

 


                                                                                       1                                                 29 November 2021

Wellington Water Committee | Komiti Ngā Wai Hangarua

08 November 2021

 

 

 

File: (21/1910)

 

 

 

 

Report no: WWC2021/5/279 (4)

 

Quarter 1 Company Performance Report 2021/22 - Wellington Water Limited

 

Purpose of Report

1.    To provide the Wellington Water Committee with an overview of Wellington Water Limited’s performance for Quarter 1 of 2021/22.

 

Recommendations

That the Committee: 

 

(1)   receives and notes this report; and

 

(2)   provides feedback on the content and approach to the new quarterly performance report. 

 

 

Summary

2.    The Statement of Intent 2021-24 adopted in July 2021 is the blueprint for Wellington Water Limited (the company) for the next three years. 

 

3.    A new format for highlighting performance each quarter for the year ahead has been in development with the aim to provide this to the Wellington Water Committee (the Committee) for future quarters when available for the Committee’s consideration. 

 

 

 

4.    The close-up is designed to supplement the quarterly Company Update, providing a wider view of the company’s achievements and challenges for the quarter in a format that is accessible to a wider variety of audiences including the public.   

 

5.    For the remainder of the year we intend to provide the report in ‘real-time’ to the Committee alongside the Statement of Intent summary of performance and the risk profile. These will then be provided on the subsequent agenda of the next Committee meeting for your records.  

 

6.    This and future company performance reports will be made available to partners and stakeholders, and to the public through the company’s website. 

Appendices

No.

Title

Page

1

Wellington Water Company Performance Report DRAFT

90

2

Wellington Water Quarterly Close-up Draft Design Layout

98

    

 

 

 

 

 

Author: External Author (Wellington Water Ltd)

 

 

 


Attachment 1

Wellington Water Company Performance Report DRAFT

 









Attachment 2

Wellington Water Quarterly Close-up Draft Design Layout

 











                                                                                       1                                                 29 November 2021

Wellington Water Committee | Komiti Ngā Wai Hangarua

08 November 2021

 

 

 

File: (21/1911)

 

 

 

 

Report no: WWC2021/5/280 (4)

 

Wellington Water Limited Annual Report to 30 June 2021

 

Purpose of Report

1.         To present the Wellington Water Limited 2020/21 Annual Report to the Wellington Water Committee.

 

Recommendations

That the Committee receives the Wellington Water Limited 2020/21 Annual Report.

 

Background

2.         Wellington Water Limited (the company) is required to deliver an Annual Report within three months of the end of the financial year which includes the Annual Financial Statements. 

3.    The Wellington Water Committee are responsible for receiving the final annual report and audit opinion.  

4.    As the company 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 New Zealand to complete this year’s audit on their behalf.  

 

 

 5.   This year the 2020/21 Annual Report was adopted by the Board of Directors on 30 September 2021 and is included as Appendix 1 attached to the report.  

Summary of Results

6.    The company’s financial audit went well as expected, presenting fairly in all material aspects, and complying with generally accepted accounting practices.  

 

7.    The company reduced the number of qualified material measures from five to two, with only metropolitan councils’ audit opinions being impacted by this result. The two measures relying on external systems remained qualified.  

Improvement Plan for the Year Ahead

8.    For water loss, Audit New Zealand has indicated that a minimum sample of 5% domestic water meter coverage is required across the metropolitan area representing   around 7,500 meters across the region. Following assessment of available options and international best practice for water supplies that do not yet have full domestic metering, we have installed 15 Small Area Monitors across the metropolitan area that allow more accurate assessment of consumption and leakage. Preliminary results are expected in early 2022. 

 

9.    The measure relating to customer complaints requires changes to be made by shareholding councils to the way that they receive and record complaints. This is expected to remain qualified for the foreseeable future, as it is Audit New Zealand’s opinion that the current methodology is under-reporting complaints. 

Appendices

No.

Title

Page

1

Wellington Water Limited Annual Report 2020/21

110

    

 

 

 

 

 

Author: External Author (Wellington Water Ltd)

 

 

 


Attachment 1

Wellington Water Limited Annual Report 2020/21

 

































































                                                                                       1                                                 29 November 2021

 

Wellington Water Committee | Komiti Ngā Wai Hangarua

08 November 2021

 

 

 

File: (21/1892)

 

 

 

 

Report no: WWC2021/5/267 (4)

 

Annual Letter of Expectation to Wellington Water Limited

 

 

Recommendations

That the Committee:

(1)           notes and receives the report;

 

(2)     approves the annual shareholder Letter of Expectation to Wellington              Water Limited (attached as Appendix 1 to the report); and

 

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

 

Background

2.    The Wellington Water Committee (the Committee) members have the delegated authority from each of the six councils who make up the shareholding of the company to agree to the annual letter of expectation. This is set out in the Committee's terms of reference.

 

3.    The objective of the Letter of Expectation is to provide shareholders with the opportunity to state their priorities to the company which will then be included in the company's statement of intent. The board of the company must deliver a draft statement of intent on or before 1 March 2022 for           consideration.

 

4.    The priorities included in the Letter of Expectation reflect those flowing from the councils' overall objectives as expressed in their long-term plans in relation to the three waters, and also respond to short to medium priorities important to the shareholders.

 

Communication

 

5.    Once approved, the Chair of the Committee will circulate the agreed Letter of Expectation to the Chair of the Board, the Chief Executive and to all shareholders.

 

Legal Considerations

 

6.    Officers recognise that the matters referenced in this report may have a   high degree of importance to affected or interested parties.

 

7.    The matter requiring decision in this report has been considered by officers  against the requirements of Part 6 of the Local Government Act 2002 (the Act). Part 6 sets out the obligations of local authorities in relation to the making of decisions.

Significance of the Decision

 

8.    Part 6 requires the Committee to consider the significance of the decision.                  The term 'significance' has a statutory definition set out in the Act.

 

9.    Officers have considered the significance of the matter and recommend that the matter be considered to have low significance. Officers do not consider that a formal record outlining consideration of the decision­ making process is required in this instance.

 

 

 

 

Appendices

No.

Title

Page

1

Draft Wellington Water Letter of Expectation 2022-23

176

    

 

 

 

Author: Wendy Walker

Chief Executive, Porirua City Council

 

 


Attachment 1

Draft Wellington Water Letter of Expectation 2022-23

 




                                                                                       1                                                 29 November 2021

Wellington Water Committee | Komiti Ngā Wai Hangarua

09 November 2021

 

 

 

File: (21/1848)

 

 

 

 

Report no: WWC2021/5/282 (4)

 

Appointment of Directors to Wellington Water Limited

 

Purpose of Report

1.    The purpose of this report is to recommend the recruitment process for the appointment of two directors to the Board of Wellington Water Limited (‘the board’). 

Recommendations

That the Committee: 

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

(2)   notes Mr Geoff Dangerfield has resigned as Chair of the Board of Wellington Water Limited (the board); 

(3)   notes that Ms Lynda Carroll was elected as the Chair of the board on 22 October 2021; 

(4)   appoints Jackson Stone as the recruitment agency to undertake an identification and selection process to identify up to two suitable candidates for appointment; 

(5)   agrees to appoint an interview panel comprising of a number of Committee members and Ms Lynda Carroll as an observer/adviser; and

(6)   agrees that this interview panel will work with Jackson Stone to shortlist and select preferred candidates to be considered for appointment by the full Wellington Water Committee.

 

Background

2.    Mr Geoff Dangerfield resigned as Chair of the board.  Ms Lynda Carroll has been elected as the Chair of the board. 

Membership of the Board

3.         The current board comprises of five directors. They are: 

 

Director 

Term ends 

Mr Philip Barry 

1 July 2022 

Ms Kim Skelton 

1 September 2023 

Mr Mike Underhill 

1 September 2023 

Ms Lynda Carroll (Chair) 

1 July 2024 

Ms Leanne Southey 

1 July 2024 

 

4.    The constitution requires appointments to be made by Class A shareholders (Wellington City Council, Hutt City Council, Upper Hutt City Council, Porirua City Council, Wellington Regional Council and South Wairarapa District Council). Directors’ appointments need to be made by unanimous resolution of Class A shareholders and any appointee cannot be a person disqualified from acting as director under the Companies Act 1993. This appointment right has been delegated to the appointees of the Councils on the Wellington Water Committee in accordance with the Appendix to the Shareholders’ and Partnership Agreement. All appointees from Councils must be at a meeting to appoint Directors in order for there to be a quorum.

 

5.    In addition, the Wellington Water Committee’s role comprises (amongst other things): 

 

“seeking and interviewing candidates for Wellington Water Limited’s Board as needed and recommending to the holder of Class A Shares appointments and/or removals of directors of Wellington Water Limited”. 

 

In accordance with Wellington Water Limited's constitution, the minimum number of Directors is four and the maximum is eight. The Board is able to continue to act notwithstanding outstanding vacancies. 

 

The Shareholders’ and Partnership Agreement identifies that all Directors must be independent directors selected by the Wellington Water Committee in accordance with the Board Skills Matrix, attached as Appendix 1 to the report. An independent director is defined in the Shareholders and Partnership Agreement as: 

 

“….a Director appointed by the Shareholders jointly by agreement and who is neither a member (including Councillors and Mayors) of nor a person employed by any local authority (as defined under the LGA)”. 

 

Independent Directors

6.    The Constitution of the company records directors shall be independent directors. 

7.    Each Class A Shareholder is entitled to jointly appoint and remove directors, subject to the maximum number of directors permitted under the Constitution. 

8.   Directors shall be appointed and removed by the unanimous resolution of the Class A Shareholders. 

9.    An appointee must not be a person disqualified from acting as a director under the Companies Act 1993. 

10.  The minimum number of directors shall be four and the maximum number of directors shall be eight, or such other number fixed by Special Resolution. 

11.  A director may be appointed and removed from office at any time by the Class A Shareholders by written notice to the company. 

Skills of Directors

12.  Class A Shareholders may appoint a person to be a director of the company only if the person has, in the opinion of the Class A Shareholders, the skills, knowledge, or experience to: 

(i)      guide the company, given the nature and scope of its activities; 

(ii)     contribute to the achievement of the objectives of the company; and 

(iii)    all Director appointments must be made in accordance with the Shareholders and Partnership Agreement, including the Board Skills Matrix. 

13.  The skills matrix, attached as Appendix 1 to the report, already provides an outline of the requisite characteristics of a Board member. It is also helpful to consider the issues facing the delivery of water services now and in the next 5-10 years.  These issues include: 

(i)      Government’s three waters reform – to preserve the interests of the existing shareholding Councils and Mana Whenua it would be helpful for the directors to be skilled in working with Government in a reform environment. 

(ii)     Te Ao Māori and Tikanga Māori – the inclusion on the board of at least one director with knowledge of the Māori world view would align with both Government and shareholding Councils’ aspirations to work in partnership with Mana Whenua. 

(iii)    The asset challenge facing the region in the face of rising freshwater standards, COVID-19 and the myriad of climate change issues. 

 

14.  The skills matrix outlines in some detail the requirements of a director. Given the criticality of the period ahead it is helpful to focus recruitment on professional experienced directors who can assist the company to navigate the times ahead. In addition to the skills matrix it would be helpful if experience in regulatory and environmental matters was available within the mix of experience on the board. 

Process to Identify Directors

 

15.  The Wellington Water Board is near its minimum, so the appointment process should be implemented, noting though the Board is able to continue to act notwithstanding outstanding vacancies.

 

16.  The appointment of Directors is a critical decision point for shareholding Councils. Although Mana Whenua representatives do not have a vote, this is an opportunity under the new constitution for these representatives to have a role in recommending preferred Director appointments to the shareholding Councils.

 

17.  According to the constitution the Chair is appointed by the Directors. In practice the Wellington Water Committee has indicated which of the Directors it would prefer to be Chair.

 

18.  Given the challenging times ahead as the Government’s water reform programme unfolds, it is recommended that recruitment should target two additional directors.

 

19.  The appointment of Directors should be conducted as an open process. In the past Jackson Stone & Partners have provided recruitment services for Board appointments and they have conducted a public process involving a call for individual expressions of interest alongside a targeted search for suitable candidates for appointment. It may also be beneficial to ask them to prepare a long list for approval so that there are ready replacements if a Director stands down. This reduces the recruitment cost at the next vacancy.

 

 

 

 

 

 

 

 

 

 

 

 

 

20.  A proposed recruitment process is outlined below:

Date 

Action 

29 November 2021 

Wellington Water Committee meeting: 

·      approves process for director recruitment including appointment of Jackson Stone & Partners and interview panel for shortlisting and interviewing candidates 

To be added 

Jackson Stone & Partners initiates recruitment 

 To be added

Long list presented to panel and shortlisting completed 

 To be added

Interviews completed by panel 

March 2022 

Wellington Water Committee meets to appoint Directors. 

 

Legal Considerations

21.  Each shareholder Council has delegated to its appointed Committee member all its responsibilities and powers in relation to the appointment, removal and remuneration of the company’s Directors. 

22.  Under section 57 of the Local Government Act 2002 (LGA), a local authority may only appoint a person to be a Director if the person has in the opinion of the local authority the skills, knowledge or experience to: 

a.    Guide the organisation given the nature and scope of its activities; and 

b.    Contribute to the achievement of the objectives of the organisation. 

23.  These obligations also extend to the appointed Committee member, exercising their delegations. They are mirrored in the Constitution of the company at clauses 11.7 and 11.8. 

24.  The Constitution of the company also specifies that a Board must collectively have relevant knowledge and experience of certain matters as set out in Schedule 1 of the Constitution. 

Appendices

No.

Title

Page

1

Schedule of Board Skills Matrix

185

    

 

 

 

 

 

Author: Annie Doornebosch

Democracy Advisor

 

 

 

 

 

 

Reviewed By: Kathryn Stannard

Head of Democratic Services

 

 

 

Reviewed By: Bradley Cato

Chief Legal Officer

 

 

 

Approved By: Wendy Walker

Chief Executive, Porirua City Council

 


Attachment 1

Schedule of Board Skills Matrix

 





MEMORANDUM                                                  1                                                 29 November 2021

Our Reference          21/1558

TO:                      Chair and Members

Wellington Water Committee | Komiti Ngā Wai Hangarua

FROM:                Annie Doornebosch

DATE:                01 November 2021

SUBJECT:           Meeting Schedule for 2022

 

Recommendation

That the Committee:

 

(1)   agrees to the meeting schedule for 2022 as follows:

 

(a)     Friday, 18 March 2022;

(b)     Friday, 27 May 2022;

(c)     Friday, 29 July 2022;

(d)     Friday, 30 September 2022;

 

(2)   confirms the venue for its meeting 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.

 

Purpose of Memorandum

1.    For the Wellington Water Committee (the Committee) to adopt its meeting schedule 2022.

Proposed meeting arrangements for 2022

 

2.    Officers have contacted members to arrange appropriate dates for the Committee to meet in 2022.

 

3.    It is envisaged that the Committee will usually meet on five occasions in each year, with additional meetings arranged as required.

 

4.    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.

 

5.    The last meeting cycle (November 2022) will be scheduled following the 2022 local body elections.  A tentative date of Friday, 25 November 2022 has been identified.

 

Discussion

 

6.    After receiving confirmation from members that they had no prior commitments on the proposed dates for 2022, officers received Local Government New Zealand’s Zone 4 meetings schedule for 2022. 

There is a clash in the proposed dates scheduled for Friday, 18 March and Friday, 27 May 2022.

 

Wellington Water Committee Terms of Reference

 

7.    Under the Committee’s Terms of Reference the Council, for which the Chair is an elected member, will provide secretariat services to the Committee.  The Chair is responsible for managing the agendas at Committee meetings.

 

8.    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 the Terms of Reference taking precedence.

 

9.    It is proposed that the venue for Committee meetings be held in the Council Chambers at Hutt City Council, 30 Laings Road, Lower Hutt.  This will improve administrative efficiency given that the Democratic Services team at Hutt City Council provides the secretariat support.

 

10.  It is proposed to live cast the public part of meetings to allow members to attend by means of an electronic link provided that Standing Orders 13.11 and 13.12 are met.  This also allows the public part of meetings to be more accessible to the public without them having to be physically present.  Members of the public who wish to present under public comment will be able to do so either in person or via an audio/visual link.

 

Communication

 

11.  In accordance with legislation, public notice of each formal meeting will be given at the appropriate time.  A copy of the Order Paper for each meeting will be made available for public inspection at the principal office of each shareholding local authority.

 

 

Appendices

There are no appendices for this Memorandum.    

 

 

 

 

 

Author: Annie Doornebosch

Democracy Advisor

 

 

 

Reviewed By: Kate Glanville

Senior Democracy Advisor

 

Approved By: Kathryn Stannard

Head of Democratic Services