Komiti Ngā Wai Hangarua|

Wellington Water Committee

 

 

15 March 2022

 

Order Paper for the meeting to be held via Zoom on:

 

 

 

Friday 18 March 2022 commencing at 10.00am

 

 

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.

 

 

    


HUTT CITY COUNCIL

 

Komiti Ngā Wai Hangarua  | Wellington Water Committee

 

Meeting to be held via Zoom on

 Friday 18 March 2022 commencing at 10.00am.

 

ORDER PAPER

 

Public Business

 

1.       OPENING FORMALITIES - KARAKIA TĪMATANGA (22/41)

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 (22/42)

          Verbal update by the Chair.

6.       Minutes

Meeting minutes Komiti Ngā Wai Hangarua| Wellington Water Committee,

29 November 2021                                                                                                        10                                                                                                                                  

7.       Water Reforms - Regional Update (22/43)

A verbal update will be provided at the meeting.

           

8.       Wellington Water Limited - Company Update (22/307)

Report No. WWC2022/1/4 by Wellington Water Limited                                    31

CHAIR’s Recommendation:

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

 

9.       Wellington Water Limited Half Yearly Report as at 31 December 2021 (22/308)

Report No. WWC2022/1/3 by Wellington Water Limited                                    87

CHAIR’s Recommendation:

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

 

10.     Wellington Water Limited 2021/22 Capital Works Programme (22/309)

Report No. WWC2022/1/52 by Wellington Water Limited                                112

CHAIR’s Recommendation:

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

 

11.     Wellington Water Limited - Regional Wastewater Treatment Plant Contract Review (22/310)

Report No. WWC2022/1/5 by Wellington Water Limited                                  117

CHAIR’s Recommendation:

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

 

12.     Wellington Water Limited - Drinking Water Regulation Update (22/448)

Report No. WWC2022/1/6 by Wellington Water Limited                                  152

CHAIR’s Recommendation:

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

 

 

 

13.     Wellington Water Limited - Six Monthly Value for Money Report (22/311)

Report No. WWC2022/1/7 by Wellington Water Limited                                  166

CHAIR’s Recommendation:

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

 

14.     Wellington Water Limited - Draft Statement of Intent 2022-25 (22/312)

Report No. WWC2022/1/8 by Wellington Water Limited                                  194

CHAIR’s Recommendation:

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

 

15.     FLUORIDATION OF DRINKING WATER

          Verbal update by Wellington Water Limited.

16.     Information Item - Wellington Water Committee Forward Programme 2022 (22/474)

Memorandum dated 24 February 2022 by the Democracy Advisor                    248

CHAIR’s Recommendation:

‘That the recommendation contained in the memorandum be endorsed.”

 

17.     EXCLUSION OF THE PUBLIC

CHAIR'S RECOMMENDATION:

 

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

18.     Appointment of Directors to Wellington Water Limited (22/285)

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

 

 

 

 

(A)

(B)

(C)

 

 

 

General subject of the matter to be considered.

Reason for passing this resolution in relation to each matter.

Ground under section 48(1) for the passing of this resolution.

 

 

 

 

 

 

Appointment of Directors to Wellington Water Limited.

The withholding of the information is necessary to protect the privacy of natural persons. (s7(2)(a)).

That the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exist.

 

 

This resolution is made in reliance on section 48(1) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or 7 of that Act which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public are as specified in Column (B) above.”

 

 

 

 

Annie Doornebosch

Democracy Advisor

Hutt City Council

 

 


                                                                       1                                         29 November 2021

Komiti Ngā Wai Hangarua |Wellington Water Committee

 

Minutes of a meeting held in the Hutt City Council Chambers, 30 Laings Road, Lower Hutt on Monday 29 November 2021 commencing at 1.00pm

 

 

PRESENT:

Mayor C Barry (Chair) (HCC)

 

Mayor A Baker (PCC)

 

Deputy Mayor G Emms (SWDC Alternate)

 

Mayor W Guppy (Deputy Chair) (UHCC)

 

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

 

Cr S Rush (WCC)

 

Cr J van Lier (GWRC)

APOLOGIES:                  Mayor A Beijen (SWDC)

 

IN ATTENDANCE:        Ms N Hooper, Observer SWDCC (part meeting via audio visual link)

                                            Deputy Mayor H Swales  (UHCC Alternate)

Cr R Leggett (PCC Alternate)

Ms W Walker, Chief Executive, PCC

                                          Mr P Kelly, Chief Executive, UHCC

                                          Mr C Crampton, Chief Executive, WWL

Ms L Carroll, Chair WWL Board

Ms K Skelton, Director WWL Board (via audio visual link)

Mr M Underhill, Director, WWL Board (via audio visual link)

Mr D List, Project Director, Regional Water Reform, PCC

Mr H Modlik, Chief Executive, Te Rūnanga O Toa Rangatira

Mr M Ford, Group Manager Business Services/Chief Financial Officer, WWL (via audio visual link)

Ms T Haskell, Group Manager, Network Development and Delivery, WWL (via audio visual link)

Mr K Locke, Group Manager Customer Operations, WWL

Mr F Clarke, Principal Advisor Strategy, WWL

Mr C Barker, Director, Regulatory Services, WWL (via audio visual link)

Mr M Hall, Manager Commercial, Business Improvement and Procurement, WWL (via audio visual link)

Mr J Fyfe, Programme Manager – Sustainable Water Supply and Demand, WWL (via audio visual link)

Ms S Watkins, Manager Business Planning and Performance Reporting, WWL

Ms S Proctor, Chief Infrastructure Officer, WCC

Mr B Hodgins, Strategic Advisor, HCC

Ms K Stannard, Head of Democratic Services, HCC (part meeting)

Mrs A Doornebosch, Democracy Advisor, HCC

Ms H Clegg, Minute Taker, HCC

                                         

PUBLIC BUSINESS

 

1.       OPENING FORMALITIES - Karakia Timatanga     

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

RESOLVED:  (Mayor Barry/Cr Baker)                                         Minute No.   WWC 21501

“That the apology received from Mayor Beijen 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

A written transcript of the Chair’s Statement is attached as page 12 to the minutes.

6.       Minutes

 

Resolved:   (Mayor Barry/Cr Rush)                                        Minute No. WWC 21502

 

“That the minutes of the meeting of the Wellington Water Committee | Komiti Ngā Wai Hangarua held on Friday, 24 September 2021, be confirmed as a true and correct record.”

7.

Water Reforms - Regional Update

Mr Dougal List, Project Director, Porirua City Council (PCC) provided a verbal update and presentation attached as pages 13 to 17 to the minutes.  He acknowledged the short timeframe to receive feedback prior to the proposed new Bill being prepared.  He advised additional information was expected from the Department of Internal Affairs in the next two weeks around the public consultation processes.  He stated he was currently working with Wellington Water Limited and council officers on analysis of a recent discussion paper from the Ministry of Business, Innovation and Employment regarding the Reforms.  He said feedback on this was due by 20 December 2021. 

In response to questions from members, Mr List advised it would be helpful if all councils in the Wellington and Wairarapa regions provided similar messages when consulting with their communities.  He acknowledged concerns that not all councils in the region were stakeholders.  He said that whilst the terms of reference for the working groups were specific, there were many broader issues involved.  He undertook to continue to work with councils from the Wellington and Wairarapa regions to gather feedback on engagement before the next working group meeting.

The Chief Executive, PCC highlighted that as the Water Reforms were now mandated, there were no decisions required from councils.  She advised that public consultation should be focussed on providing information to communities.  She acknowledged the desire of each council to gauge the opinions of their communities to assist in any council submissions to the process.

 

 

8.

Company Update (21/1907)

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

 

The Chief Executive, Wellington Water Limited (WWL) elaborated on the report.  He introduced Mr Charles Barker, the new Director of Regulatory Services at WWL.

Speaking via audio visual link, Mr Barker believed regulation provided an important mechanism to pursue efficiencies within an organisation and ensure any risks or liabilities were well managed.  He believed that WWL was well placed to establish excellent relationships with any future water regulators.

In response to questions from members, the Chief Executive, WWL noted several measures WWL had undertaken to ensure staff morale was maintained.  He noted a current review into cyber security throughout WWL, with contingency planning underway if computer operating systems were compromised. He advised WWL was on-track to substantially complete all high critical asset assessments by the end of June 2022.  He noted this work was governed by the amount of funding each council provided.  He confirmed all the projects listed in the Top Priority Projects were on scheduled work programmes.  He confirmed the new reservoir in Wellington was not within the projects list as it was not within the current work programme.  He advised the WWL company risk profile would be published on the WWL website.  He confirmed the Veolia review included all four treatment plants and abatement notices had been received for all of them.  He advised the WWL Board would receive the Veolia review report from the independent reviewers before Christmas and a subsequent report would be submitted to the Wellington Water Committee detailing possible courses of action. 

In response to questions from members the Group Manager, Customer Operations, WWL advised WWL had developed a six-week accelerated development programme to bring new trainees into the sector using existing staff to train them.  He added WWL had also developed a concept to develop a regional training facility although this was currently unfunded.  He said there was further opportunity to work with Mana Whenua to achieve the accelerated training programme targets.

Mayor Guppy expressed concern that a thorough review of WWL had not occurred in the past seven years.  He believed the Wellington Water Committee had no proof it was receiving value for money and correct information.  He agreed to report back with suggestions for how an oversight function of WWL could operate.  

 

Resolved:  (Mayor Barry/Cr van Lier)                                    Minute No. WWC 21502

 

“That the Committee receives and notes the report.”

 

 

9.

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

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

 

The Chair, Wellington Water Limited (WWL) Board elaborated on the report.  She highlighted the collaborative way WWL and council officers had worked in developing the plan.  She confirmed WWL officers were liaising with councils’ communications teams and Mana Whenua partners.

The Principal Advisor, Strategy, WWL elaborated on the report.  He advised the draft report was a guidance document with presentation work still to be completed.

In response to questions from members, the Principal Advisor, Strategy, WWL advised developing a new water source was mentioned under the “Ensuring there’s enough water for people and the environment” section.  He also advised the draft document aligned with councils’ Long Term Plans and that WWL was conscious of the local authority public engagement processes currently underway.  He explained the plan was not a detailed document and not designed to be able to be used in submissions to councils’ District Plan processes.  He acknowledged work already undertaken by Mana Whenua on their engagement in developing the plan.  He agreed to formally develop briefing and meeting sessions with Mana Whenua partners. He advised it was proposed to release the document for public consultation and engagement in February 2022. 

 

Resolved:   (Mayor Barry/Cr van Lier)                                Minute No. WWC 21503

 

“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.

 

10.

Service Delivery Strategy Update (21/1945)

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

 

The Group Manager, Network Development and Delivery, Wellington Water Limited (WWL) elaborated on the report (via audio visual link).   

 

Resolved:   (Mayor Guppy/Mayor Baker)                             Minute No. WWC 21504

 

“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.” 

 

11.

Update on Asset Condition Assessment Programme (21/1948)

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

 

The Principal Advisor Strategy, Wellington Water Limited (WWL) elaborated on the report. He advised that whilst the level of funding from each council had increased for the asset condition assessment programme, it was still not sufficient to complete the programme. 

In response to questions from members, the Principal Advisor Strategy, WWL advised that the highly critical asset assessment programme was on-track and the assessments of less critical assets were progressing gradually.  He said that more resources and time were required for this to be completed.  He advised investment was being targeted to the areas WWL had received funding for, from each council.

The Chief Executive, WWL advised the Auditor’s report raised no issues with the condition assessment programme.  He acknowledged that each council required a full asset condition assessment as soon as possible.  He advised he would report back on specifics for the main interceptor. 

In response to a question from a member, the Chief Executive, WWL noted a report to the next Wellington Water Committee meeting would include an overview of regional and council specific data and results from this programme.  He said this would also include how the programme had evolved council by council and some early signals for the 2024-34 Long Term Plans.

 

Resolved:   (Mayor Barry/Mayor Baker)                               Minute No. WWC 21505

 

“That the Committee: 

 

(1)   receives the report;

 

(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.”

 

12.

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

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

 

The Group Manager Business Services/Chief Financial Officer, Wellington Water Limited (WWL) explained WWL was liaising with councils to align quarterly reports in real time.  He added WWL was proposing to hold webinar sessions when each report was released.

 

Resolved:   (Mayor Barry/Mayor Baker)                                Minute No. WWC 21506

 

“That the Committee: 

 

(1)   receives and notes this report; and

 

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

13.

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

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

 

The Chair, Wellington Water Limited (WWL) Board elaborated on the report.  She gave a presentation attached as pages 18 to 21 to the minutes.

In response to questions from members, the Chief Executive, WWL said WWL was experiencing labour shortages.  He acknowledged the poor result for the South Wairarapa incident response times.

 

Resolved:   (Mayor Barry/Cr Rush)                                         Minute No. WWC 21507

 

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

 

14.

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

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

 

The Chief Executive, Porirua City Council (PCC) elaborated on the report.   She highlighted the changes requested by Wellington City Council including a request for a stronger view of what was expected in each Annual Plan round.  She noted the Mana Whenua partnership with the Wellington Water Committee was developing, and this process would be refined as time progressed. 

In response to a question from a member, the Chief Executive, PCC agreed to investigate whether Greater Wellington Regional Council had submitted to the draft letter and to incorporate their requests into the draft.

 

Resolved:   (Mayor Barry/Cr van Lier)                                  Minute No. WWC 21508

“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) subject to amendments discussed at the Wellington Water Committee meeting held on 29 November 2021; and

 

(3)     authorises the Wellington Water Committee Chair to sign the Letter of Expectation.

         

15.

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

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

 

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

 

Resolved:   (Mayor Barry/Mayor Guppy)                                Minute No. WWC 21509

 

“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 Mayor Barry, Mayor Baker, Mayor Beijen, Ms Lee Rauhina-August and Ms Lynda Carroll as an observer/adviser; and

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

 

16.

Meeting Schedule for 2022 (21/1558)

Memorandum dated 1 November 2021 by the Democracy Advisor

 

The Head of Democratic Services elaborated on the report.  She advised the cycle 1 and 2 proposed meeting dates for the Wellington Water Committee now conflicted with the recently released Local Government New Zealand Zone 4 meetings.

Mayor Barry noted that officers had worked hard on finding suitable dates when members were available.

In discussion, members agreed the proposed meeting dates should be confirmed at the meeting.

 

Resolved:   (Mayor Barry/Mayor Guppy)                              Minute No. WWC 21510

 

“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 meetings will be the Council Chambers, Hutt City Council,
30 Laings Road, Lower Hutt; and

 

(3)   agrees to live cast the public part of its meetings.”

Mayor Barry acknowledged participants who had joined the meeting via the audio visual link.  He wished everyone all the best for the festive season.

 

17.     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 3.17 pm.

 

 

 

Mayor C Barry

CHAIR

 

CONFIRMED as a true and correct record dated this 18th day of March 2022

 

Chair’s Statement

 

Wellington Water Committee 29 November 2021

 

 

Given that this is the last meeting of the year, I want to acknowledge all the staff at Wellington Water Limited for the work they have put in over what has been a tough year on our region’s infrastructure.

 

Wellington Water Limited and its shareholding councils have recognised the need to address our infrastructure challenges, and as a result we have seen most long term plans significantly increase investment in three waters.

 

While the structure of how we deliver three waters will change, it is still our core responsibility to deliver safe drinking water and ensure our waste is not polluting our waterways.

 

That’s why we’re reviewing our 30 year Investment Plan, so that the region is prepared for current and future challenges, no matter what body is delivering that core infrastructure.

 

Some of these include our water supply, which we need to conserve - especially over the summer months.

 

Please take care when it comes to using water as we head into hotter, drier weather. Simple things like taking shorter showers, for four minutes maximum, will help with our regions water supply, especially if we go through drought periods over summer.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


                                                                                       1                                                         18 March 2022

Wellington Water Committee |

              Komiti Ngā Wai Hangarua

09 February 2022

 

 

 

File: (22/307)

 

 

 

 

Report no: WWC2022/1/4

 

Wellington Water Limited - Company Update

 

 

 

 

Purpose of Report

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

 

 

Recommendation

That the Committee receives and notes the report.

 

How to read this report 

 

2.    We continue to develop this report to provide the best information to the Wellington Water Committee (the Committee).  The report comprises four parts as follows: 

 

i.   Governance Update 

 

ii.  Key Issues 

 

iii. Wellington Water Committee Priorities; and  

 

iv. Operational update. 

 

Governance Update 

3.    Since the last Wellington Water Committee meeting, the Wellington Water Board (the Board) has: 

 

i.     approved the draft Statement of Intent (SOI) and reviewed the quarterly performance and risks for Quarter 2;   

 

ii.    considered the Regional Wastewater Contract review and moved to accept all the recommendations so planning for implementation can begin; and 

 

iii.   overseen the planning for the delivery of five major projects including Kaitoke Flume Bridge, Silverstream Trestle Bridge, Te Mārua Treatment Plant upgrade, Porirua Wastewater Holding Tank, and the Wellington City Council CBD Pressure Main Upgrades. 

 

4.    The key governance conversations held by the Board in recent times, are as follows: 

 

i.     Water Reform impacts; 

 

ii.    Company Strategy; 

 

iii.   2024/34 Long Term Planning;  

 

iv.   Opex Budgets; and 

 

v.    Completion of a self-review. 

 

5.    The Board has been following the final shape and structure of the National Transition Unit (NTU) and the Entity C Establishment Unit with interest. The Board recognises the challenges present in terms of resourcing these entities and Wellington Water. The Board is keen to establish alignment between the parties, so resources are deployed equitably for all. This is particularly important in such a constrained labour market. 

 

6.    The Board carried out its annual strategy review. The long-term direction of restoring the balance between the water, environment and people was agreed as our long-term direction. The importance of Te Mana o Te Wai alongside this direction was also acknowledged. It was agreed that the focus for the organisation over the next two years was all about delivery. In this respect, delivery means looking after our people, continuing to build capability, addressing the requirements of Taumata Arowai and deliver for customers and councils across opex and capex. 

 

7.    The Board continues to consider the 2024/34 Long Term Plan (LTP) within the water reform context. The work between 2021/24 is well documented. Councils are accountable for this work and Wellington Water for delivering it. The question is more about the levels of service, budgets and capital projects for the period 2024/27 where there is a co-design expectation between councils and the NTU. For example, we are doing work now on projects that would be candidates for delivery in the first three years of the new water entities. The question is how much planning does Wellington Water whānau do before 30 June 2024 for the 2024/27 period? 

 

 

 

8.    Over the last three years there has been an ongoing trend of Opex costs needed to meet levels of service and risk exceeding current budgets. There are many reasons for this, but the key ones are related to ageing networks, increased expectations, cost increases and ongoing high levels of incidents and emergency work across the networks. For 2021/22 most councils optimised their fiscal stimulus funds to ensure that maintaining levels of service and risk was affordable. However, in 2022/23 and 2023/24, additional government funding is not available so services will have to be constrained to meet current LTP budgets. This means reducing levels of service and accepting greater risk across the networks.

 

9.    The Board undertook a self-evaluation using the Institute of Directors Better Boards Survey.  The results indicate: 

 

i.     The Board is a committed group who clearly understand their role and hold a high level of integrity and governance experience.   

 

ii.    The Board is looking forward to welcoming two new Board members as this will enable them to have greater diversity of thought, skills, experience and capacity. In particular, the Board has identified the need for additional expertise in the areas of water sector and asset management, and local government.  Once the new Board members have joined, a review of the subcommittee framework will take place to ensure there is a dedicated focus on areas critical to the company’s ongoing success as we move towards water reform. 

 

iii.   The Board has recently been working on enhancing governance processes including areas such as agenda setting and has developed an annual board work plan. We will continue to keep abreast of the changing regulatory environment. We understand clearly our health and safety responsibilities and regularly undertake site visits to review the implementation of our health and safety policy. We are also looking at providing more clarity to management on how they should report to us. 

 

iv.   Finally, we are looking at how we can engage more effectively with our stakeholders at a governance level. We are aware that most of this role has been held effectively by management, however we see this area as key for the ongoing successful transition through the water reform process. 

 

Key Issues 

 

A Fatal accident at the Omāroro Reservoir Site 

 

10.  On Wednesday 2 March 2022 we were notified of a serious accident at the Omāroro site involving an individual working for Rees Engineering – a subcontractor to the main contractor HEB. 

 

 

 

 

11.  On Thursday we were advised that sadly the individual had passed away.  The main contractor HEB advised Worksafe of the fatality and Worksafe has now completed a site inspection and released the site so work can continue.  Worksafe has 12 months to carry out further investigations and decide on any action as a consequence of the accident. 

 

12.  Initially, our response has been focused on the worker’s family and all the people involved in the Omāroro project.  Wellington Water has supported HEB who have taken the lead and offered any appropriate support to the family going forward.  A whakawātea (blessing) was held on site and two members of our team represented Wellington Water at the Tangi for the individual. 

 

13.  The next steps involve a number of investigations to review the performance of the Health and Safety system following this incident. This includes all Person Conducting a Business or Undertaking (PCBU) relationships and the execution of the duty of care across all partners.  In addition, Wellington Water is seeking an external review of all of our responses to ensure there are no gaps in our approach.  This system review will be reported to the Board, WCC, the Committee and provided to Worksafe. 

 

The impact of Omicron 

 

14.  Omicron is now steadily spreading through the people of Aotearoa.  It presents a personal risk to individuals and a business continuity risk to the ongoing provision of services to customers and our owners.  Wellington Water provides critical services in the form of water treatment, network management and wastewater treatment.  Our approach to mitigating the risk of not being able to provide critical services, includes working in bubbles, establishing backup resources and carrying out daily Rapid Antigen Testing and always following Public Health advice.  

 

15.  In Appendix 1 attached to the report we provide a summary of the current impact of Omicron on our workforce and capital programme.  You will receive an update to this appendix the day before the Committee meeting. 

 

16.  We are now planning for the worst-case scenario should this eventuate. This will focus on ensuring resources are able to work on critical services at the expense of all other work. 

 

Environmental Consent Compliance 

 

17.  There are three abatement notices ‘live’ across three treatment plants.  All relate to needing to meet consent conditions following a period where we did not.  The most critical is an abatement notice on the Moa Point plant which expired on 31 December 2021.  We are working with GWRC to extend this timeline to enable the plant to come back into compliance following heavy maintenance.  Until GWRC extend this period there is increased risk of prosecution. 

 

 

 

 

Three Waters Risk Profile 

 

18.  The company’s current risk profile is attached as Appendix 2 to the report.  As usual this is available to the public on our website. 

  

Wellington Water Committee Priorities 

 

Capex Delivery 

 

19.  An update on the delivery of the capital programme for 2021/22 is included in this meeting under separate cover. 

 

Workforce Capability 

 

20.  Discussions on extending the Consultant and Contractor Panel agreements are being finalised. It is intended to extend the panel terms to 2027 (three years into reform) to give a balance between continued capex programme delivery for councils, business continuity for key suppliers and opportunity for the new entity to establish alternative sourcing and delivery arrangements. 

 

21.  It is intended that the extensions will be agreed in early March.  Agreements will allow more time for panels to develop social procurement objectives and plans. 

 

22.  At the time of writing, the Infrastructure Skills Centre programme has been running very well.  The biggest risk to the programme has been a disruption due to COVID and the trainees not being able to complete the programme.   

 

23.  By the time of the Committee meeting the trainees will be completing the fifth and penultimate week of their programme. A graduation will be held at the conclusion of the programme and then they will start their new roles either in the Wellington Water Customer Operations Group or with members of our Contractor Panel. We will then complete a review of the programme to determine refinements, and then confirm when the next intake will be sought to be trained.  

 

Water Reform 

 

24.  The region (including our six owners) has established a working group to provide an interface with the NTU to triage requests of councils and Wellington Water. The first major one is a series of Human Resources questions completed by 1 March 2022.  We expect the next one to be about ICT and data. 

 

25.  The NTU has sought personnel to be on advisory and steering groups. Wellington Water has provided staff for these groups and the demands are modest. The next stage is likely to be more requests for secondments which will be much more challenging to address. Any staff released to the transition arrangement will impact on Wellington Water’s ability to deliver core business for councils. While the NTU is prepared to pay for backfilling the issue here is an absolute shortage of skilled staff. 

26.  Wellington Water and NTU did carry out a planning day where we laid out respective planning documents to ensure there were no double ups and/or to identify common work we could do together. 

 

27.  One of the biggest transition risks is the potential delay in addressing increasing consumption of drinking water across the metropolitan area of Wellington due to growth and leaks. If this trend continues, the chances of more severe, frequent and extended watering restrictions in summer are high, and in a worst-case scenario could potentially result in outages in some parts of the metropolitan area (for example due to low pressure). Refer to Appendix 3 attached to the report for more information on this. 

 

28.  The region has progressed a dual approach of investigating water meters and additional source capacity to address this risk. If this work is stalled over the next two years (or even longer) then the chances of interruption to water supply over future summer months just worsens. For this reason, we think a clear understanding between the Wellington Water Committee, Wellington Water Board and the Entity C Board needs to be established to manage this specific issue. 

 

Operational Matters 

 

Update on Regulation 

 

29.  The regulatory landscape is evolving quickly as authorities move to position their policy and regulations in anticipation of water reform. This has resulted in a flurry of papers out for consultation as the Ministry of Health (fluoride mandate), the Ministry for the Environment (National Environmental Standards for Sources of Drinking Water) and Taumata Arowai focus on the commencement of the new reporting year. Wellington Water is capturing these reporting requirements in order to collect data and provide our owners assurance of our level of compliance, and engaging in consultation where appropriate. 

 

30.  A key focus remains the maturation of our Drinking Water Safety Plans, which are required to be submitted to Taumata Arowai in November 2022. Taumata Arowai will receive hundreds of these from across the country but has indicated that their risk-based approach to reviewing them would make Wellington Water’s one of the first (population and geography size that the plans cover etc.).  

 

31.  Key to achieving a good compliance outcome from this review are the Source Water Risk Management Plans which are due for completion in June 2022; completing the South Wairarapa Drinking Water Safety Plan; and resourcing the current shortfalls within the Drinking Water Safety Plans relating to investigations, incident management, operational auditing and operational risk management. 

 

32.  The relationship with Taumata Arowai remains good and in part this is due to the openness of Wellington Water to share its compliance journey with the regulator. 

 

 

Fiscal Stimulus 

 

33.  There are three months to run until the Fiscal Stimulus Fund closes out on 30 June 2022. You will recall the region was allocated $47.3M to spend over the 2020/21 and 2021/22 financial years by agreeing to work with government on investigating the reform of water services across New Zealand. 

 

34.  We are on track to complete all the fiscal stimulus funding work by the 30 June 2022 deadline. In Appendix 4 attached to the report we have included individual council and Wellington Water output reports which outline the benefits the region has obtained from this investment. 

 

35.  A full closeout report is required by the Department of Internal Affairs/Crown Infrastructure Partners on conclusion of the fund. This report will also act as a closeout report to all councils which will be presented at the 29 July 2022 Committee meeting. 

 

36.  While the fiscal stimulus has led to some excellent outcomes for customers it will leave a big hole over the 2022/23 and 2023/24 financial years when it finishes. Fiscal stimulus has been used to fund the difference between actual opex costs and LTP budgets in most cases.  

 

Asset Condition Assessment 

 

37.  Understanding the health of the region’s water assets is a prudent part of an asset management system. Low investment across the region, including in conditional assessment, has led to a limited understanding of asset health and increased risk of service failure. With an asset base of at least $6B, it is estimated that $10M per annum of condition assessment needs to be conducted annually (based on international evidence). 

 

38.  Under the operational budgets provided in the 2018 LTP (totaling $1M for condition assessment), the only proactive condition assessment undertaken by Wellington Water was through CCTV inspections of a total of approximately 27km of gravity wastewater and stormwater pipes (approximately 1% of the wastewater and stormwater network length). Limited condition assessment data was also captured as part of investigations prior to reactive maintenance work and capex projects, and some limited opportunistic sampling of asbestos cement watermains.  

 

39.  In 2019, in response to a number of critical asset failures, Wellington City Council and Hutt City Council made available additional funds of $500,000 and $200,000 respectively to undertake condition assessment. This funding was used to instigate the ‘Very High Criticality Assessment’ (VHCA) programme, which was given a significant investment lift from the government stimulus funding made available from September 2020 to June 2022.  

 

40.  The current 2021-24 LTP budgets provide for condition assessment programmes across the region amounting to approximately $2.5M per year until the end of 2023/24. This will enable Wellington Water to implement a critical valve testing programme and to complete assessment of approximately 100km of pipe within the three waters networks.  

41.  If an ongoing provision of $10M per year was released, we could make more significant progress in gaining an understanding of the condition of the region’s asset base. Under this scenario, condition assessment priorities would continue to be set according to perceived risk using age, maintenance history and criticality as inputs. 

  

42.  The data would inform future asset management decisions for renewals and maintenance planning and asset valuation. This will lead to a greater confidence in knowing how to best extend the expected lives of assets.  

 

 

 

 

Appendices

No.

Title

Page

1

Wellington Water COVID Update - 9 March 2022

39

2

Wellington Water Key Risks - Performance Summary Quarter 2 2021-22

40

3

Sustainability Water Supply and Demand - Risk Update

44

4

Fiscal Stimulus Interim Reports to the end of February 2022

52

     

 

 

 

 

 

 

 

Author: External Author (Wellington Water Ltd)

 

 

  


Attachment 1

Wellington Water COVID Update - 9 March 2022

 


Attachment 2

Wellington Water Key Risks - Performance Summary Quarter 2 2021-22

 





Attachment 3

Sustainability Water Supply and Demand - Risk Update

 









Attachment 4

Fiscal Stimulus Interim Reports to the end of February 2022

 




































                                                                                       1                                                         18 March 2022

Wellington Water Committee |

            Komiti Ngā Wai Hangarua

09 February 2022

 

 

 

File: (22/308)

 

 

 

 

Report no: WWC2022/1/3

 

Wellington Water Limited Half Yearly Report as at 31 December 2021

 

 

 

 

Purpose of Report

1.    The purpose of this paper is to provide the Wellington Water Ltd Half-Year Report to the Committee for their information. 

 

 

Recommendation

That the Committee receives Wellington Water Limited’s Half-Year Report to 31 December 2021 attached as Appendix 1 to the report.

 

Summary

2.    Wellington Water Limited (the Company) is required under the Local Government Act 2002 to produce a Half-yearly report, and to provide that report to its shareholders before the beginning of March in the year the report relates. The report must contain information required by the Company’s Statement of Intent (SOI). 

 

3.    The Half-year Report shows the financial and non-financial performance of the Company for the period 1 July 2021 to 31 December 2021. Unlike the Annual Report, the Half-year Report is not audited.  

 

4.    Councils are required to publish this document on their websites within one month of receiving it. Following this meeting, the Company will forward the document onto council officers to do so.  

 

 

Climate Change Impact and Considerations 

4.      There are no climate change impact or considerations related to this report.  

 

Consultation 

5.    There is no consultation or engagement requirements related to this report. 

 

Legal Considerations 

6.    There are no legal considerations related to this report. 

 

Financial Considerations 

7.    There are no financial considerations related to this report. 

 

 

 

Appendices

No.

Title

Page

1

Wellington Water Limited Half-Year Report to 31 December 2021

89

    

 

 

 

 

 

 

 

Author: External Author (Wellington Water Ltd)

 

 

 

  


Attachment 1

Wellington Water Limited Half-Year Report to 31 December 2021

 
























                                                                                       1                                                         18 March 2022

Wellington Water Committee |

              Komiti Ngā Wai Hangarua

09 February 2022

 

 

 

File: (22/309)

 

 

 

 

Report no: WWC2022/1/52

 

Wellington Water Limited 2021/22 Capital Works Programme

 

 

Purpose of Report

1.         The purpose of this paper is to update the Wellington Water Committee on the progress of the 2021/22 capital works programme. 

 

Recommendation

That the Committee notes the report.

 

Background

3.         Councils have provided Wellington Water with an increase in funding over the 2021-24 Long-Term Plan (LTP) planning period.  At a regional level, we have been asked to deliver $585M worth of capital over the next three years, the largest programme in Wellington Water’s history.   

4.         The current investment profile from the councils has an uneven spread of investment, with a steep increase in the first year, and a decrease in year three.  In order to make the programme achievable, we have smoothed the investment with a steady continuous uplift over the three years.  This enables Wellington Water and its supplier whānau to grow capability and capacity in a sustainable manner, while still delivering the full programme by the end of the three-year LTP cycle. 

 

 

 

 

Discussion 

 

5.         The capital delivery range for the region for 2021/22 is $145M to $191M.   

6.         The second quarter capital results show us that, while we continue to build on our previous years delivery, we are below our forecast expenditure.   

7.         At the end of January, the capital programme spend across the region was $76M, up 25% on the same time last year but behind forecast (by 11%) to achieve the mid-point of the range ($162M). 

8.         At an individual council level, there are two councils tracking outside the lower range (Greater Wellington Regional Council and Wellington City Council), three tracking within the capital range (Hutt City Council, South Wairarapa District Council and Upper Hutt City Council) and one council tracking above the upper range (Porirua City Council).  

9.         The biggest cause of this projected underspend are delays to major projects. Some of these are common to the industry and are due to shortages in materials and people, and long lead times in the supply chains.  In the case of Omāroro, this is due to poor weather and COVID.  For others it is due to approvals being delayed or slower than expected procurement processes. 

10.     The impacts of Omicron are seeing a slowing and stopping of activities on sites while people or their families are sick.  Our contractors and consultants are all using Rapid Antigen Testing to get people back to work once they are well. The current status of the impact of Omicron on the capital programme is included in this meeting under separate cover. 

11.     On reviewing the year to date spend by council and assessing the risk for the remainder of the year, we are expecting to deliver at the lower end of the range ($145m to $162m). 

12.     The lower confidence level is due to the “back-ending” of the programme, which sees the bulk of the construction work scheduled between now and the end of the financial year.  This is a legacy behaviour that we are working hard to remove and to smooth the construction so that it is constant over the entire year. 

13.     The stimulus funded “Fast Track Catchment Renewals Programme” is expected to be completed by February/March this year.  The programme has succeeded in increasing the use of trenchless technology and delivered improvements in our cost per metre of pipe laid.  We have a number of programmes that will move into construction next year to take advantage of this approach.  

14.     We are forecasting further improved levels of expenditure in year two of the programme.  There are a number of very large projects in the approval and award stage.  We also have a number of Catchment Renewals (long term renewals focussed on a particular area) that are due to get underway late this financial year or early next, particularly in Hutt City. 

15.     The year two programme is currently being reviewed for deliverability and will then be provided to our contractor and consultant panels in March for feedback. 

 

16.     A capital programme dashboard has been provided as Appendix 1 attached to the report with more information for consideration.  

 

 

 

 

 

Appendices

No.

Title

Page

1

Wellington Water Capital Delivery Dashboard - January 2022

115

    

 

 

Author:  External Author (Wellington Water Ltd)

 

 

 

 

 


Attachment 1

Wellington Water Capital Delivery Dashboard - January 2022

 



                                                                                       1                                                         18 March 2022

Wellington Water Committee |

               Komiti Ngā Wai Hangarua

09 February 2022

 

 

 

File: (22/310)

 

 

 

 

Report no: WWC2022/1/5

 

Wellington Water Limited - Regional Wastewater Treatment Plant Contract Review

 

 

 

 

 

Purpose of Report

1.    To provide the Wastewater Treatment Plant Review report for discussion.

 

 

Recommendations

That the Committee:

(1)   receives the Wastewater Treatment Plant Review attached as Appendix 1 to the report;

  

(2)   notes the implementation plan which addresses all recommendations will be completed on 23 March 2022; 

 

(3)   notes the Wellington Water Committee will receive a summary of the implementation plan once it is endorsed by the steering group.

 

 

 

The Need for the Review 

 

3.    Since awarding the Regional Wastewater Treatment Plant contract to Veolia the contract has been underperforming. 

 

4.    There have been a number of breaches and non-compliances, some under Veolia’s control, while others are related to the performance of the assets owned by the councils. 

 

5.    On 17 August 2021 the sludge blanket in one of the clarifiers at the Porirua Wastewater Treatment Plant overflowed and discharged into the sea. This was avoidable, was not reported immediately, and in Wellington Water’s view did not uphold our value of looking after the environment. 

 

6.    Wellington Water advised Veolia that it would carry out an independent review to draw a line under previous poor performances and look to what needs to be in place for the contract to meet all its requirements. 

 

The Review 

 

7.    The review is attached as Appendix 1 to the report for the Wellington Water Committee’s (the Committee) information.  

 

8.    The review broadly concludes: 

 

i.     The contract between Wellington Water and Veolia is sound;  

 

ii.    Veolia did not resource nor set up the systems expected in the contract; 

 

iii.   Wellington Water did not have the full capability to deliver this type of contract; and

 

iv.   Relationships between the contracted parties were strained. 

 

9.    The Wellington Water Board (the Board) (including industry expert Graham Darlow) held a workshop with the reviewers before accepting all the recommendations made. 

 

10.  The Board has asked for an implementation plan to be prepared which will address the recommendations.  The implementation of the review’s findings will proceed in parallel with the ongoing day-to-day running of the plants.  

 

Implementation 

 

11.  The implementation plan is under development and will be complete by 23 March 2022.  We will seek to have it endorsed by the steering group within a fortnight and ready for formal release. 

 

Governance 

 

12.  The implementation plan is being programme managed by Wellington Water with regular reports being made to the Board 

 

 

 

13.  In addition, a steering group made up of Veolia, Wellington Water, mana whenua and councils has been set up to oversee the execution of the implementation plan. This was the same steering group used during the review itself and now includes council membership from Wellington City Council and Upper Hutt City Council in addition to Porirua City Council. 

 

14.  Wellington Water has briefed both the Porirua and the Hutt Valley joint venture committees, and the Wellington City Council on the detail of the review. All councils and stakeholders have the document. 

 

Consent Compliance 

 

15.  Due to a combination of asset and operator performance, Wellington Water is currently working through a number of consent compliance issues including:  

 

i.     closing out on three current abatement notices including one which has expired at Moa Point.  This latter issue relates to asset failures in all three of the clarifiers over an extended timeframe.  Now the third clarifier is fixed, it takes 90 days to see compliance established.  We are asking for the abatement notice to be extended to 31 May 2022; and  

 

ii.    Addressing further issues with the plants’ performance which may or may not lead to either infringement or abatement notices now or into the future. 

 

16.  It is clear that Greater Wellington Regional Council is strengthening its regulator overview of wastewater plants in general. 

 

 

 

Appendices

No.

Title

Page

1

Regional Wastewater Treatment Plant Review Report - December 2021

120

    

 

 

 

 

 

 

 

Author: External Author (Wellington Water Ltd)

 

 

 

  


Attachment 1

Regional Wastewater Treatment Plant Review Report - December 2021

 

























Blank Page








                                                                                       1                                                         18 March 2022

Wellington Water Committee |                          

                Komiti Ngā Wai Hangarua

23 February 2022

 

 

 

File: (22/448)

 

 

 

 

Report no: WWC2022/1/6

 

Wellington Water Limited - Drinking Water Regulation Update

 

 

 

 

Purpose of Report

1.    The purpose of this report is to provide the Wellington Water Committee with an update on the drinking water regulatory landscape. 

 

Recommendations

That the Committee:

(1)  receives the Regulation Update attached as Appendix 1 to the report; and

(2)  notes the briefing pack information contained in the report.

 

Background 

 

3.    This quarter has seen a marked increase in activity within the regulation space. Driven by the desire of the regulatory bodies to position themselves in preparation for Three Waters Reform, an increasing number of policies and regulations have been released for consultation.  

 

4.    While there are positive signs of cooperation amongst the regulator entities there are some aspects that will only gain clarity over time. Inter-regulator conflict may slow final versions of measures - MBIE (proxy economic regulator) may voice an alternative opinion on economic measures being included in Taumata Arowai measures. These tensions will play out over time, but Wellington Water will need to retain its focus on the delivery of core services and regulatory compliance, while supporting the transition to Entity C.   

 

5.    Overall, Wellington Water is well placed to meet the increasing regulatory requirements but is exposed around data quality assurance, internal operational audit, investigations, and assurance programmes that inform risk. 

 

6.    To give assurance to the Committee and councils, quarterly compliance reports will be generated and aggregated each quarter that mirror the end of year report format. These reports will develop on the disclosure templates that were previously provided to the Committee. A copy of the Regulation Update is attached as Appendix 1 to the report.  

 

Key Points from Briefing Pack 

 

7.    The Ministry for the Environment has released the Standards for Sources of Human Drinking Water. These strengthen the protection of Source Water Risk Management Areas (Catchments) and dovetail cleanly with Taumata Arowai’s requirement for water suppliers to have Source Water Risk Management Plans. Wellington Water accepted a tender for Tonkin + Taylor to generate a full suite of eight plans to meet this requirement. 

 

8.    The Ministry of Health is surveying all water supplies to understand the level of fluoridation in the drinking water of New Zealand. The stated intent is to mandate fluoridation commencing in June 2022. The Ministry of Health recognise that this target may not be met by all water providers given the complexity of sources of water and the cost of equipment.   

 

9.    Taumata Arowai has five documents out for consultation with four being socialised prior. Those four are largely uncontentious with Wellington Water intending to submit on a range of small technical points. The fifth document is the Environmental Performance Measures, this has used an expansive interpretation of the Resource Management Act definition of ‘Environment’. 

 

10.   Environment includes: 

 

i.   ecosystems and their constituent parts, including people and communities;  

 

ii.   all natural and physical resources;  

 

iii.  amenity values; and, 

 

iv. the social, economic, aesthetic, and cultural conditions which affect the matters stated in paragraphs (i) to (iii) or which are affected by those matters.  

 

11.  Taumata Arowai has utilised the ‘economic conditions which affect the people and communities’ to ask a comprehensive range of questions about the cost of water. A concern is that this confuses the role of Taumata Arowai and the future Economic Regulator; where one focuses on quality and assurance of drinking water and the other on the economic model that underpins drinking water as an industry.

 

Conclusion 

 

12.  The briefing pack provides a vehicle for the Committee and councils to engage with Wellington Water about the changing regulatory landscape. The aim is for the Committee and councils to gain assurance that they will be well briefed throughout the first year of reporting to Taumata Arowai and that Wellington Water understands where its compliance challenges are. 

 

 

 

 

Appendices

No.

Title

Page

1

Regulation Update

155

    

 

 

 

 

 

 

 

Author: External Author (Wellington Water Ltd)

 

 

 

  


Attachment 1

Regulation Update

 












                                                                                       1                                                         18 March 2022

Wellington Water Committee |        

               Komiti Ngā Wai Hangarua

09 February 2022

 

 

 

File: (22/311)

 

 

 

 

Report no: WWC2022/1/7

 

Wellington Water Limited - Six Monthly Value for Money Report

 

 

 

 

Purpose of Report

1.    The purpose of this report is to provide the Committee with the Six-Monthly Value for Money (VfM) report. 

 

 

Recommendation

That the Committee receives the Six-Monthly Value for Money Report attached as Appendix 1 to the report.

 

Background

2.    Last year, a Value for Money (VfM) framework was developed as an internal process tool to provide structure for VfM reporting to the Wellington Water Committee (the Committee)

 

3.    The framework includes five parts as follows

 

i.    Benchmarking; 

 

ii.  Long Term Plan (LTP) and Annual Plan (AP) Advice; 

 

iii.  Value for Money Reviews; 

 

iv.    Metrics; and

 

v.    Value for Money Stories 

 

4.    The first report was provided to the Committee in September 2021.

 

5.    Not all parts of the framework were to be reported on every six months.  This report included as Appendix 1 attached to the report focuses on the following parts

 

i.    Benchmarking; 

 

ii.  Value for Money Reviews; and  

 

iii.  Value for Money Stories 

 

Benchmarking  

 

6.    The framework includes participating in benchmarking exercises, with

 

i. Water Services Association of Australia Benchmarking (WSAA); and

 

ii.     Water New Zealand National Performance Review. 

 

7.    During the last six months we participated in the WSAA Customer perceptions survey.   

 

8.    Wellington Water did not receive a good rating for the Net Promoter Score (NPS) metric. NPS is a measure about customer loyalty and potential revenue growth and is heavily influenced by brand recognition and affordability.  Our brand recognition by customers is disproportionately influenced by media compared to other utility providers (70% compared to sector average 15%). 

 

9.    Wellington Water did achieve very good results in several other key metrics of VfM, Trust, Customer Satisfaction, and Water Quality Satisfaction. These metrics are heavily influenced by customer perceptions derived from their experiences with a utility provider. 

 

10.  We are still awaiting the results of the national performance review by Water New Zealand and will therefore include an overview in the next issue of the VfM report. 

 

 

 

 

 

 

 

 

 

 

Appendices

No.

Title

Page

1

Wellington Water Six-Monthly Value for Money Report - February 2022

169

    

 

 

 

 

 

 

 

Author: External Author (Wellington Water Ltd)

 

 

 

  


Attachment 1

Wellington Water Six-Monthly Value for Money Report - February 2022

 


























                                                                                       1                                                         18 March 2022

Wellington Water Committee |

              Komiti Ngā Wai Hangarua

09 February 2022

 

 

 

File: (22/312)

 

 

 

 

Report no: WWC2022/1/8

 

Wellington Water Limited - Draft Statement of Intent 2022-25

 

 

 

 

Purpose of Report

1.    The purpose of this report is to invite feedback on Wellington Water Limited’s initial draft Statement of Intent 2022-25 and seek a month extension to deliver the final document to better align with council annual plan decision-making. 

 

Recommendations

That the Committee:

(1)   receives Wellington Water Limited’s draft Statement of Intent 2022-25 attached as Appendix 1 to the report; 

 

(2)   provides combined shareholder feedback on Wellington Water Limited’s draft Statement of Intent by Monday, 2 May 2022; 

 

(3)   endorses the outlined approach to finalise Wellington Water Limited’s Statement of Intent 2022-25 to allow for alignment with council annual plan decision-making; and 

 

(4)   agrees to provide Wellington Water Limited with a one-month extension in accordance with Schedule 8, Part 1, Clause 4 of the Local Government Act 2002 to deliver the final Statement of Intent 2022-25 to the Committee by 31 July 2022

 

 

 

Background

2.    Wellington Water Ltd (the Company) is required to adopt a Statement of Intent (SOI) prior to the beginning of each financial year.  

 

3.    The purpose of the SOI is to: 

 

i.   state publicly the activities and intentions of the council-controlled organisation for the [financial year to which it relates and each of the immediately following 2 financial years] and the objectives to which those activities will contribute;  

 

ii.  provide an opportunity for shareholders to influence the direction of the organisation; and

 

iii. provide a basis for the accountability of the directors to their shareholders for the performance of the organisation. 

 

4.    The SOI is guided by the Annual Letter of Expectations, which shareholders must provide by 1 December each year.  

 

5.    A draft of the SOI must be provided to shareholders no later than the end of February, and the Board must formally consider comments (if any) from shareholders by the end of April. The final SOI must be adopted by 30 June. 

 

6.    Shareholders, by written notice, may extend this deadline by up to one calendar month to 31 July.  

 

Our operating environment  

 

7.    The adoption of 2021-31 long-term plans saw a lift in investment by councils across the region that will go some way to beginning to address our aging three waters infrastructure over that period.  

 

8.    As explained at the time, the agreed investment was not enough to meet the long-term outcomes the Company set out in its advice to each council for each strategic priority. This means that the region is beginning to move in the right direction for ‘looking after existing infrastructure’, but further away from progress in other key areas like water security, the water quality of our rivers, streams and harbours and working toward net carbon zero. 

 

9.    As the Company looks ahead for the next two years, delivery will be impacted by a number of factors out of the Company’s direct control and that are still emerging: 

 

i.     Rising costs of materials and labour, interruption in the supply chain, and general capacity and capability limitations in the sector, the Company is building less for more, and with longer lead in periods (exacerbated by COVID-19), while the aging network is revealing itself with an increasing backlog of planned and reactive maintenance and repairs. 

 

ii.    In this current financial year, the Company has applied stimulus funding to fund BAU operations such as reactive maintenance as well as critical strategic programmes such as getting ready for regulation, leak detection and repair, asset management system improvements and very-high criticality asset condition assessments. This finishes on 30 June 2022 and will impact the Company’s level of service for years 2 and 3 if the Company is unable to secure further three waters funding from the government.

 

iii.   New costs and risks over and above of what is allowed for in the LTP have emerged over the last 12 months since LTP adoption such as increasing asset failures, preparing for the new drinking water regulator (followed by stormwater and wastewater in 2023), and cybersecurity risk. 

 

10.  It was acknowledged in our 2021-31 LTP advice that government stimulus funding support would end. A new funding stream of ‘better off’ funding will be released but the indication so far from councils is that this is earmarked for other non-three waters activities and/or will be used instead to respond to risks. 

 

11.  Water reform was confirmed for all councils late last year, and just before Christmas an exposure draft of the Water Services Entities Bill released. This will be followed by the formal introduction of the Water Services Entities Bill for submissions in March/April. 

 

12.  Meanwhile the transition programme is beginning to gain traction led by the Department of Internal Affairs (DIA) – for example the Company is in the process of responding to a RFI from DIA on the three waters workforce. The Company is commencing work to understand and quantify the resourcing of the transition as more information is released, but a collaborative approach is required to ensure the right outcomes for the government, councils and the Company.  

 

Draft Statement of Intent 2022-25 

 

13.  The Company received the Annual Letter of Expectations on 29 November 2021 that broadly reaffirms the direction that councils set through their long-term planning. There are some new expectations over and above this that the Company will be unable to meet with the resources and budget allocated in the next two years.  A table has been included in Appendix 2 attached to the report on how we have addressed expectations in the letter in this draft.  

 

14.  Overall, though, the Company does not have sufficient funding to achieve what the Company set out to achieve in its current Statement of Intent 2021-24. On balance the region is moving further away from making an impact on its desired outcomes.  

 

15.  The Company is facing very tight budgets for 2022/23 and 2023/24 which will require a reduction in our activities across the board and that will impact levels of service. This creates added uncertainty for our whānau and will affect people as well as programmes and projects at a time when as a sector we need to be ramping up. 

 

Next steps 

 

16.  The Company will continue discussions with councils over the next four months as councils consult and decide on their annual plans, the Company reviews its activities to align with available budget, and more details emerge around transition requirements and other emerging risks and issues described above.  

 

17.  A one-month extension is being sought by the Company from the Committee to deliver the final SOI to ensure it accurately reflects the outcome of the above and the final budgets agreed in council annual plans that are generally adopted on 30 June 2022. 

 

18.  The Committee has a responsibility under its Terms of Reference to receive, consider and provide agreed feedback and recommendations to the Company on its draft SOI. Feedback is invited to be sent to Porirua City Council wendy.walker@poriruacity.govt.nz by Monday, 2 May 2022. We are available to attend each council’s meeting to present the draft SOI. 

 

19.  Following feedback from the Committee, we will further refine the content of the document and deliver a final draft version to you by 31 July 2022. 

 

Climate Change Impact and Considerations

20.  The matters addressed in this report have been considered in accordance with the process set out in Council’s Climate Change Considerations Guide. 

 

21.  Wellington Water’s draft Statement of Intent 2022-25 is limited in its contribution to advancing government policy regarding both climate change mitigation and adaptation due to funding constraints.   

 

Appendices

No.

Title

Page

1

Wellington Water Initial Draft Statement of Intent 2022-25

198

2

Table Showing How Letter of Expectations has been addressed

246

    

 

 

 

 

 

 

 

Author: External Author (Wellington Water Ltd)

 

 

 

  


Attachment 1

Wellington Water Initial Draft Statement of Intent 2022-25

 

















































Attachment 2

Table Showing How Letter of Expectations has been addressed

 



MEMORANDUM                                                  1                                                         18 March 2022

Our Reference          22/474

TO:                      Chair and Members

Wellington Water Committee | Komiti Ngā Wai Hangarua

FROM:                Annie Doornebosch

DATE:                24 February 2022

SUBJECT:           Wellington Water Committee Forward Programme 2022

 

 

Recommendation

That the Committee receives and notes the Forward Programme for 2022 attached as Appendix 1 to the memorandum.

 

 

Purpose of Memorandum

1.    To provide the Wellington Water Committee (the committee) with a Forward Programme of work planned for the Wellington Water Committee for 2022.

Background

2.    The Terms of Reference for the committee requires the committee to provide governance and leadership across issues relating to the planning, delivery and management of water services to communities serviced by Wellington Water Limited.

3.    The Forward Programme for 2022 provides a planning tool for both members and officers to co-ordinate programmes of work for the year.  The programme is attached as Appendix 1 to the report.

4.    Workshops will be planned for each meeting cycle, to provide members with a forum to build knowledge, and discuss strategic issues and topical items.

Forward Programme

 

5.    The Forward Programme is a working document and is subject to change on a regular basis.

 

Appendices

No.

Title

Page

1

Wellington Water Committtee Forward Programme 2022

250

    

 

 

 

 

 

 

Author: Annie Doornebosch

Democracy Advisor

 

 

 

 

 

 

Reviewed By: Kate Glanville

Senior Democracy Advisor

 

 

 

Approved By: Kathryn Stannard

Head of Democratic Services

 


Attachment 1

Wellington Water Committtee Forward Programme 2022