Komiti Ngā Wai Hangarua Wellington Water Committee |

 

24 May 2022

 

Order Paper for the meeting to be held in the

Hutt City Council Chambers, 2nd Floor, 30 Laings Road, Lower Hutt,

on:

 

 

Friday 27 May 2022 commencing at 10.00am

The meeting will be livestreamed on Council’s Facebook page.

Members of the public wishing to speak to items on the agenda are asked to contact: democraticservicesteam@huttcity.govt.nz

 

                                       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

Mayor A Foster

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 in the Hutt City Council Chambers,

2nd Floor, 30 Laings Road, Lower Hutt on

 Friday 27 May 2022 commencing at 10.00am.

 

ORDER PAPER

 

Public Business

 

1.       Opening formalities - Karakia Timatanga (22/895)

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.

 

2.       APOLOGIES

Ms Rauhina-August

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 (22/901)

Verbal update by the Chair.

6.       Minutes

Meeting minutes Komiti Ngā Wai Hangarua |Wellington Water Committee, 18 March 2022                                                                                                                         10

 

7.       Water Reforms - Regional Update (22/902)

A verbal update will be provided at the meeting.                                                    

8.       Transition Planning for Three Waters Reform (22/1169)

Report No. WWC2022/3/91 by Porirua City Council                                           27

CHAIR’s Recommendation:

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

 

9.       Draft Statement of Intent 2022-25 Feedback (22/1170)

Report No. WWC2022/3/92 by Wellington Water Limited                                  34

CHAIR’s Recommendation:

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

 

10.     Wellington Water Limited - Company Update (22/1165)

Report No. WWC2022/3/93 by Wellington Water Limited                                  43

CHAIR’s Recommendation:

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

 

11.     Wellington Water Limited - 2021-24 Water Services Investment Update (22/1166)

Report No. WWC2022/3/94 by Wellington Water Limited                                  60

CHAIR’s Recommendation:

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

 

12.     Wellington Water Limited - Drinking Water Regulation Update (22/1168)

Report No. WWC2022/3/95 by Wellington Water Limited                                  68

CHAIR’s Recommendation:

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

 

 

13.     Wellington Water Limited - Wastewater Treatment Update (22/1167)

Report No. WWC2022/3/96 by Wellington Water Limited                                  80

CHAIR’s Recommendation:

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

 

14.     Information Item - Wellington Water Committee Forward Programme 2022 (22/900)

Memorandum dated 6 May 2022 by the Democracy Advisor, Hutt City Council 92     

  CHAIR’s Recommendation:

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

 

15.     EXCLUSION OF THE PUBLIC

CHAIR'S RECOMMENDATION:

 

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

16.     Minutes

18 March 2022

17.     Appointment of Director to Wellington Water Limited (22/1172)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

(A)

(B)

(C)

 

 

 

General subject of the matter to be considered.

Reason for passing this resolution in relation to each matter.

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

 

 

 

 

 

 

Minutes of the Wellington Water Committee | Komiti Ngā Wai Hangarua held on 18 March 2022:  Appointment of Director to Wellington Water Limited

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

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

 

 

 

Appointment of Director to Wellington Water Limited.

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

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

 

 

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

 

 

 

 

Annie Doornebosch

Democracy Advisor

Hutt City Council

 

         


                                                                       1                                               18 March 2022

Komiti Ngā Wai Hangarua |Wellington Water Committee

 

Minutes of a meeting held via Zoom on

 Friday 18 March 2022 commencing at 10.00am

 

 

PRESENT:

Mayor C Barry (Chair) (HCC)

(via audio visual)

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)

 

APOLOGIES:                  No  apologies.

 

NON-ATTENDANCE:   Ms M Pomare, Te Rūnunga o Toa Rangatira

 

IN ATTENDANCE:        

(via audio visual)              Deputy Mayor H Swales  (UHCC Alternate)

                                            Deputy Mayor G Emms (SWDC Alternate)

                                            Deputy Mayor T Lewis (HCC Alternate)

                                            Cr I Pannett (WCC Alternate) (part meeting)

Cr R Leggett (PCC Alternate) (part meeting)

Ms W Walker, Chief Executive, PCC

                                          Mr C Crampton, Chief Executive, WWL (part meeting)

Ms L Carroll, Chair WWL Board (part meeting)

Mr M Underhill, Director, WWL Board  (part meeting)

Mr D List, Project Director, Regional Water Reform, PCC (part meeting)

Mr M Ford, Group Manager Business Services/Chief Financial Officer, WWL (part meeting)

Ms T Haskell, Group Manager, Network Development and Delivery, WWL (part meeting)

Mr K Locke, Group Manager Customer Operations, WWL (part meeting)

Mr C Barker, Director, Regulatory Services, WWL (part meeting)

Mr M Hall, Manager Commercial, Business Improvement and Procurement, WWL  (part meeting)

Mr E Stitt, Chief Advisor Service Delivery, WWL (part meeting)

Mr F Clarke, Principal Advisor, Strategy, WWL(part meeting)

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

Mr L Davies, Governance Coordinator, WWL (part meeting)

Mr B Hodgins, Strategic Advisor, HCC (part meeting)

Ms K Stannard, Head of Democratic Services, HCC

Mrs A Doornebosch, Democracy Advisor, HCC

 

PUBLIC BUSINESS

 

 

1.       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

There were no apologies. 

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 pages 12 and 13 to the minutes.

6.       Minutes

Resolved: (Mayor Barry/Mayor Baker)                                  Minute No. WWC 22101

 

“That the minutes of the meeting of the Komiti Ngā Wai Hangarua | Wellington Water Committee held on Monday, 29 November 2021, be confirmed as a true and correct record.”

 

7.

Water Reforms - Regional Update

Mr Dougal List, Project Director, Porirua City Council (PCC) presented slides on the Three Waters reforms attached as pages 14 and 15 to the minutes.  He noted useful feedback had been received from all councils. 

 

In response to questions from members, the Project Director, PCC said some iwi felt well informed and had good representation in the working group process.   He acknowledged that some iwi and hapū were feeling left out of the process and there was a mixed level of understanding regarding the reforms.  He advised the feedback had been passed on to the Department of Internal Affairs and a focus around iwi engagement moving forward would be addressed.

 

The Chief Executive, PCC advised a hui would be held later in March 2022 for iwi representatives on the Committee to be briefed and discuss future iwi engagement on water reforms.

 

           

  

8.

Wellington Water Limited - Company Update (22/307)

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

 

The Board Chair, Wellington Water Limited (WWL) elaborated on the report.  She said the Board had concerns regarding the transition phase of the water reforms especially in relation to staff resourcing.   She noted the recent changes in isolation rules for COVID had reduced frontline staff absences from 30% to 12% and added WWL was managing urgent servicing.  She said the Board would shortly review its governance frameworks including the establishment of a People and Culture Subcommittee and an Annual Board Work Programme.  She noted the fatality at Omāroro Water Reservoir in March 2022 and advised Worksafe was now undertaking an investigation.  She noted that HEB Construction as the Person Conducting a Business (PCBU) would undertake an investigation and the draft report was expected by the end of March 2022.  She highlighted WWL was also responsible for ensuring its responsibilities were fulfilled.    She acknowledged WWL staff for providing support to the whānau and attending the tangi.  She expressed her deepest condolences to the family. 

In response to a question from a member, the Board Chair advised WWL staff would reach out to iwi representatives on the Committee if any incidents occurred at sites in the future.

In response to questions from members, the Chief Executive, WWL said he would provide advice to members on the contamination vulnerabilities identified in the Asset Condition Assessments at the Omāroro Reservoir and what risks surrounded this. He said WWL staff would issue on behalf of the Committee, an enhanced version of the Wastewater Treatment Plant compliance and diagrams by the end of March 2022.  

In response to questions from members, the Principal Advisor, WWL said WWL staff had been advancing work on the business case for universal smart water meters.  He advised discussions were ongoing with the National Transition Unit and Greater Wellington Regional Council to ensure any further plans would have a life beyond the water reforms transition in 2024.   The Chief Executive, WWL advised these discussions would include how to address sustainable water supply risk and the balance between the provision of water meters and new water sources. 

Mayor Barry left the meeting at 10.49am.  Mayor Guppy chaired the meeting.

Mayor Barry rejoined the meeting at 10.52am and resumed the chair.

 

 

Resolved:  (Mayor Barry/Mayor Guppy)                              Minute No. WWC 22102

 

“That the Committee receives and notes the report.”

 

9.

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

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

 

The Board Chair of Wellington Water Limited elaborated on the report. 

 

Resolved:   (Mayor Barry/Mayor Baker)                               Minute No. WWC 22103

 

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

 

10.

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

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

 

The Group Manager, Network Development and Delivery, Wellington Water Limited (WWL) elaborated on the report.  She noted the biggest risk realised in the month since writing the report was COVID.  She said this would impact the capital programme for March 2022.  She noted WWL staff would reassess the delivery programme for the rest of the year and what impact these delays would have on years two and three.  She advised a draft Long Term Plan (LTP) programme had been distributed to WWL panels for review and staff were working through the design and plan phases.  She said this would ensure the LTP endured the water reforms process.  She said once complete WWL staff would meet with client councils to plan work programmes for each council.

 

 

Resolved: (Mayor Barry/Mayor Guppy)                             Minute No. WWC 22104

 

“That the Committee notes the report.”

 

11.

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

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

 

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

 

Mayor Baker noted the review of the Porirua Wastewater Treatment Plant (WWTP) had gone well and thanked WWL staff for the work completed to date.

 

In response to questions from members, the Chief Executive, WWL noted the implementation plan was scheduled for delivery.  He said this would be submitted to the Steering Group and then the Board of WWL.  He said it was then expected to be circulated to Councils and Committee members in April 2022.   He noted WWL had appointed a new Contract Manager and new Programme Manager for overseeing this implementation.  He said the reason WWL chose Veolia as an international supplier was to encourage new ideas but noted this was lacking in the review’s findings.  He advised part of the implementation plan was to secure a programme to show how to bring those ideas and international expertise to the table.  He noted WWL had provided updates to various councils, and the response to this had been positive. He said the independent reviewers would assess the implementation after six months.  He highlighted New Zealand’s restricted labour market limited opportunity to secure other suppliers in New Zealand but there were credible international suppliers.  He advised that the review concluded that WWL should proceed with the contract as it stood.  He noted the CEO of Veolia Australasia now attended every Board meeting and there was a good line of communication between New Zealand and the rest of Australasia.  He said he would report back to Ms Rauhina-August on who provided the wording for the Future State as noted on page 15 of the Independent Review Report. He said officers would provide an update on costs to oversee the implementation of the review findings at the next Committee meeting.

Ms Rauhina-August left the meeting at 11.08am and rejoined the meeting at 11.10am.

 

Resolved:   (Mayor Barry/Cr van Lier)                                    Minute No. WWC 22105

 

“That the Committee:

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

  

(2)   notes the implementation plan which addresses all recommendations contained within the Review 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.”

 

12.

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

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

 

The Director, Regulatory Services, Wellington Water Limited (WWL) elaborated on the report.   He highlighted the responsibility of WWL to engage with councils in drafting a Source Water Risk Management Plan, which was a new requirement from Taumata Arowai. He advised during this process, WWL had taken on board feedback from Mana Whenua and would seek further feedback from iwi and councils.  He highlighted Taumata Arowai’s expectation that WWL would provide drinking water safety plans by November 2022.  He noted by the beginning of 2023 WWL would have reporting templates complete and would be able to share these with the WWL Board and Committee.

 

In response to questions from members, the Director, Regulatory Services, WWL said the Source Water Risk Management Plans would be developed by July 2022.  He noted a water safety plan had been finalised for Wellington and WWL staff were currently drafting a plan for South Wairarapa.   He said he would distribute the Mana Whenua Whaitua Implementation Plan to members.

 

 

Resolved:   (Mayor Barry/Mayor Baker)                             Minute No. WWC 22106

 

“That the Committee:

(1)   receives the Regulation Update; and

(2)   notes the enclosed briefing pack.”

 

13.

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

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

 

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

 

In response to questions from members, the Chief Executive, WWL advised staff would provide future updates on the metrics inside the contractor and consultant panels and how WWL constructed value for money across the panels.  He said WWL staff would also provide an update on the Value for Money process for extending consultant and contractor panel agreements at the next Committee meeting.  

 

 

Resolved:   (Mayor Barry/Mayor Guppy)                              Minute No. WWC 22107

 

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

 

14.

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

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

 

The Board Chair, Wellington Water Limited (WWL) elaborated on the report.   She said over the remaining two years of operation the focus would be on delivery for WWL owners.  She highlighted WWL would also focus on staff retention including requests for assistance from the National Transition Unit.  She noted WWL wanted a clear intent to focus on the delivery of the Waste Water Treatment Plant, network services and steadily build the CAPEX programme.  She highlighted the need to form strong working relationships with partners and the NTU to ensure the company provided a seamless transition for customers across to the new Entity C structure in two years’ time.

 

The Chair asked for a clear outline of the reporting process for the Statement of Intent and how councils could provide feedback on this process.

 

 

Resolved:   (Mayor Barry/Cr van Lier)                                Minute No. WWC 22108

 

“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.”

 

15.     FLUORIDATION OF DRINKING WATER

The Director, Regulatory Services, Wellington Water Limited (WWL) presented slides attached as pages 16 and 17 to the minutes.  He noted WWL had four fluoridation plants located at Waterloo, Wainuiomata, Gear Island and Te Mārua.  He said the Waterloo plant was dosing and had good reliability.  He highlighted the Waterloo plant produced more water than it was capable of fluoridating, so some of that water was diverted to the Gear Island plant to be fluoridated.  He said the Wainuiomata plant was dosing with fluoride and the equipment was operable and reliable.  He said this plant’s reliability could be enhanced so WWL would consider a control system to optimise its operation.  He advised the Gear Island plant was not dosing and the plant was not reliable.  He said the fluoridation room had some structural issues and WWL had requested engineers to assess this.  He noted in the short term WWL would ensure the fluoridation room was safe and commence repairs to the fluoridation system or consider an external containerised solution. He said over the medium term an option could be to close the Gear Island plant and extend the Waterloo plant capacity. 

He noted it was possible to add extra fluoridation capacity into the Waterloo plant, but this would mean water supplied to Petone and Korokoro would also be fluoridated where historically they had been provided with unfluoridated water.  He noted the Te Mārua plant provided all the water supply for Petone and most of Wellington city.  He said there were some concerns with the reliablity of this plant and the baffle curtain which controlled the flow of water and blended the fluoridated water. He said divers were going to assess the baffle curtain and prepare the fluoride plant to dose again.  He noted this plant was historically unreliable. He advised WWL had ordered a new baffle curtain as a long term replacement.  He said if the curtain was repairable WWL officers were confident the fluoridation plant would be operating again within a month.

In response to questions from members, the Director, Regulatory Services, WWL advised that at no point had there been any concern or risk to the health or the quality of the drinking water supplied. He said that when the plants had malfunctioned this had always been identified and remedied before reaching the consumer.  He confirmed the water supply to Porirua was sourced at the Te Mārua Treatment Plant. He said Regional Public Health had released advice to consumers and this was available on its website.

The Chief Executive, WWL noted WWL had been in contact with the Ministry of Health who had asked WWL to keep Taumata Arowai informed regarding the fluoride issue. He advised Greater Wellington Regional Council had agreed to receive funding requests for short term operational costs and medium to long term CAPEX costs.  He noted the Chief Advisor Service Delivery, WWL would be the Project Lead and WWL would create a programme of work which would be monitored. He agreed to provide a status document and a high level plan to members going forward. 

In response to questions from members, the Chief Executive, WWL advised he would circulate the implementation plan to members once it was available.  He noted WWL had been in contact with the District Health Boards and Regional Public Health.   He said WWL staff would provide a regulatory check of all requirements for the supply of drinking water.  He noted this would also be consolidated into the inquiry.  

The Chair acknowledged the support being provided by Greater Wellington Regional Council funding to resolve these issues.

 

Resolved:   (Mayor Barry/Cr van Lier)                                        Minute No. WWC 22109

 

“That the Committee receives and notes the update on Fluoridation of Drinking Water.”

 


 

 

16.     Information Item

Wellington Water Committee Forward Programme 2022 (22/474)

Memorandum dated 24 February 2022 by the Democracy Advisor

The Chair noted the programme would be updated for the next meeting, including an update on the independent inquiry into fluoride in drinking water supplies.

Resolved:   (Mayor Barry/Mayor Baker)                    Minute No. WWC 22110

 

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

 

 

17.     EXCLUSION OF THE PUBLIC

Resolved:  (Mayor Barry/Cr van Lier)                                       Minute No. WWC 22111

“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.”

 

 

There being no further business the Chair declared the public portion of the meeting closed at 12.08pm.  The non public portion of the meeting closed at 1.05pm.

 

 

 

 

 

 

Mayor C Barry

CHAIR

 

 

 

 

 

 

CONFIRMED as a true and correct record

Dated this 27th day of May 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chair’s Statement

 

Wellington Water Committee 18 March 2022

 

Kia ora everyone, before we begin I would like to give a brief statement. 

 

Overview of fluoride situation 

 

I would like to provide a brief overview of where we are at with the Gear Island and Te Marua fluoride facilities. 

 

Firstly, I want to make it very clear that our drinking water is safe and poses no public health risk according to health experts. 

 

However, we as a committee are very disappointed to hear that fluoridation at these facilities was stopped, and that the closing of these facilities were not reported accurately to the board or the committee. 

 

The Water Committee fully supports the Board’s decision to review what has happened by appointing an independent investigation on the matter. I’m pleased to say that Doug Martin will take up the investigation, which will likely take 8 weeks to complete. 

 

Ultimately, we need to find accountability so that we can resolve this issue, and ensure transparency is maintained at Wellington Water. 

 

Infrastructure skills centre


Moving on, I’m really pleased to see Wellington Water drive their infrastructure skills centre – a six week course for youth which provides them the foundational skills, capabilities and knowledge to establish a meaningful career in the water industry.

 

We know in this region that a budget line alone doesn’t deliver results, and we need the workforce to back it up. 


Unfortunately, having contracted COVID-19 this week, I was unable to go out and visit the team. However, I’m looking forward to visiting them soon, and meeting the young people who will help us front up to the challenges we face within our three water networks.

 

Barber grove wastewater sod turning

 

I want to congratulate the team on the sod turning for the Barber Grove to Seaview wastewater treatment plant pipe duplication project. 

 

This is a project that has been years in the making, and is critical to the Hutt Valley’s wastewater infrastructure. 

 

When completed, the duplicated pipe will service 90% of the Hutt Valley’s wastewater (150,000 residents) and reduce the risk of wastewater entering Te Awa Kairangi and the Waiwhetu stream in an earthquake. 

 

 

General shout out to WW workers 

 

I also want to give a massive shoutout to everyone at Wellington Water who have been working hard to keep up with demand while teams have been impacted by COVID-19. 

 

I know this has resulted in some jobs taking a bit longer to complete with less workers on the ground, so thank you to our communities across the region for their understanding and patience. 

 

Acknowledgement of passing employing 

 

Finally I want to acknowledge the tragic event that happened at Omāroro Reservoir earlier this month. Sadly a worker on site passed away after an accident on site. 

 

On behalf of the committee, I want to share my sincere condolences to the family and all those who worked with him.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                                                                                

 

 


 

 

 

 

 

 

 

 

 

 


                                                                                       1                                                             27 May 2022

 

Wellington Water Committee |

Komiti Ngā Wai Hangarua

12 May 2022

 

File: (22/1169)

________________________________________________________________________

Report no: WWC2022/3/91

 

Transition Planning for Three Waters Reform

________________________________________________________________________

 

Purpose of Report

 

1.    The purpose of this report is to outline a more formalised structure and programme of work to support the shareholding Councils and Wellington Water Limited to manage the risks, transition issues and change processes for the Government’s three waters reform programme to 1 July 2024.

 

Recommendations

That the Committee:

 

(1)     notes a joint transition structure will be formed between Wellington Water Limited (WWL), and shareholding Councils comprising two layers:

 

a.    a Transition Steering Group (Chief Executives); and

 

b.    a Transition Working Group (senior executives from each Council and WWL);

 

(2)     notes these groups will develop and report against a three Waters Transition Framework that will outline objectives, key success factors, risks and performance indicators.  This reporting framework will be informed by more detailed, lower-level transition planning across all identified risk and programme areas;

 

(3)     notes that regular reporting will occur to the Wellington Water Committee at each of its meetings and to shareholding Councils through their representatives on the governance and working groups;

 

(4)     notes that a draft framework will be presented to the next Wellington Water Committee; and

 

(5)     notes that the WWL Statement of Intent will be amended to align with the approach outlined in this paper.

 

 

Background

2.    The government’s three waters reforms are premised on three pou or pillars:

 

·   Establishment of a dedicated water service regulator. Taumata Arowai has now been established and is moving into a phase of increased regulation of water standards;

 

·   Regulatory reforms outlined in the Water Services Act – complete; and

 

·   Reforms to water delivery services including:

 

•     the establishment of four Water Services Entities (WSE) with transfer of delivery from councils; and

 

•     economic regulation

 

3.    Over the past 18 months, the nine Wellington councils and WWL have undertaken a collaborative approach to work together and put in place shared resources for the three waters reforms process.  This has been delivered through a joint working group across the councils with a shared Programme Director and external resources as required (for example - legal advice, financial modelling, economic regulation advice). 

 

4.    The approach has helped to coordinate activity, reduce resource requirements for each council and ensure Wellington councils can collectively influence the reforms process through a more unified voice.  This work has been jointly funded through stimulus funding.

 

5.    On 29 April 2022 the Government signalled a clear intent to proceed with the three waters reforms programme.  This programme represents a very significant programme of change. 

 

6.    Dependent on legislation and timing of transition process, the reforms will lead to the eventual transfer of accountability for delivery of three waters from councils to new water services entities (WSE) on 1 July 2024.  With this councils will transfer services, debt, assets and income associated with three waters.  WWL will be disestablished with staff, assets and contracts transferred to the new WSE.  This transition process will have significant resource and organisational impacts for all councils and WWL. 

 

7.    Aspects of this change process are expected to continue past the 1 July 2024 ‘go live’ date but may include processes for billing consumers and resolution of asset transfers.

 

8.    Transition comes at a time when WWL is also working under considerable capacity and capability challenges.  These are exacerbated by historic under investment in infrastructure, scale of investment programme, supply chain and labour market disruptions due to COVID, rising community expectations, new water standards/establishment of Taumata Arowai and the need to enable growth pressures.

 

9.    Three waters reforms places additional demands and challenges on WWL and councils as well as compounding the risks of staff loss and turn-over.  Through the transition process WWL and shareholding Councils will also need to manage the risk of impacts on water services delivery/business as usual (BAU) while also engaging with the reforms process efficiently and effectively.  This is particularly important for the WWL owner councils due to shared data management, service and funding arrangements.

 

10.  The shareholders recognise that there is a need to effectively influence and be involved in the reforms process to ensure future water services delivery and mitigate the risk of staff turn-over.  This has to be balanced with ensuring ongoing delivery of BAU.

 

11.  As reflected in the feedback on the draft Statement of Intent, shareholder councils are clear on the need for WWL to continue to focus on key priorities and to deliver vital services until the new WSE are established.

 

12.  Managing these risks and challenges requires a shared and constructive response which supports WWL through transition process and also meets council and community needs.  This recognises that there will need to be prioritisation of effort and focus through this transition process.  Shareholders also need to work closely with WWL in relation to both capability and capacity – through transition, on key risks, key projects and stakeholder expectations. 

       Input and understanding of this approach will also be required from the National Transition Unit (Department of Internal Affairs).

 

Establishment of a formal transition structure

 

13.  To date three waters policy and transition issues have largely been managed by employing a single person as Programme Director, utilisation of existing resources and providing regular reporting to the Wellington Water Committee, the Mayoral Forum, the Chief Executive’s Forum, supporting individual Councils in briefing their elected members and a ‘working group’ of senior officers.  This current structure and level of resources will need to be more formalised as we move further into transition. 

 

14.  Appendix 1 attached to the report sets out the proposed high-level purpose, outcomes and structure for developing an agreed transition structure to manage risks and expectations for service delivery and change through the transition process to the disestablishment of WWL. 

 

15.  This transition structure will be progressively developed during May and June in order that we are in a solid position to manage transition as well as BAU activity from July 2022 to July 2024.

 

Consultation

16.  Council Chief Executives and senior officers in shareholding councils and WWL have been consulted in development of the transition structure and process outlined.

 

 

Legal Considerations

17.  The transition structure and process will consider the process and requirements for the disestablishment of WWL in due course.

 

Financial Considerations

18.  Costs and funding for the transition structure will be developed.  While still unclear, the costs of the three waters transition process are expected to be significant.   Further guidance on funding support is expected from the National Transition Unit by June.

 

Appendices

No.

Title

Page

1

Transition Structure, Scope and Tasks

31

     

 

 

 

 

 

 

 

Author: External Author (Porirua City Council)

 

 

  


Attachment 1

Transition Structure, Scope and Tasks

 




                                                                                       1                                                             27 May 2022

 

Wellington Water Committee |

Komiti Ngā Wai Hangarua

12 May 2022

 

 

 

File: (22/1170)

 

 

Report no: WWC2022/3/92

 

Draft Statement of Intent 2022-25 Feedback

 

 

 

Purpose of Report 

 

1.       To consider potential changes to the draft Wellington Water Limited Statement of Intent 2022-25 (SOI) in response to feedback received from shareholding councils and set out the process for finalisation of the document within the legislated timeframe. 

 

 

Recommendations

That the Committee: 

 

(1)   notes the limited feedback received from shareholding councils on the draft Wellington Water Limited Statement of Intent (SOI) 2022-25 indicates general support for the direction of the document; 

 

(2)   notes that feedback proposes that substantive changes be undertaken to incorporate: 

 

(i)         discussion on the cessation of fluoride dosing and the associated independent review;  

 

(ii)        recognition of the need for Wellington Water Limited to participate in the pending transition of water services to the new water services entity and related water reform process;  

 

(iii)       clear recognition of the priority areas for operations and investment through the transition process; and

 

(iv)      the performance targets that can be expected, that recognise the priority areas and the funding decisions in councils’ Annual Plans;

 

(3)   notes the scope of a proposed Transition Governance Group is expected to include the development of expected outcomes and performance indicators through the water reform transition process that would ideally be reflected in the final SOI; 

 

(4)   directs Wellington Water Limited on the changes sought to the SOI to incorporate the feedback, including through the Transition Governance Group; 

 

(5)   notes the final SOI will be provided for approval at the 29 July 2022 meeting, consistent with the Committee’s approval of a one-month extension to the SOI process at its 18 March 2022 meeting; and 

 

(6)   notes the Committee may request further, and final changes when considering the final SOI, subject to these being completed within one month of the Committee meeting to be held on 29 July 2022 (prior to 29 August 2022).   

 

 

Background 

 

2.    Wellington Water Ltd (the Company) is required to adopt an 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 was provided to shareholders by the end of February and discussed at the Committee’s 18 March 2022 meeting, and feedback was invited from shareholding councils.  

 

6.    The Committee should consider whether and how to incorporate the feedback provided before they receive and approve the final SOI. This should include consideration of whether proposed changes are consistent with the Letter of Expectations.  

 

7.    The shareholders agreed at the March meeting to extend their deadline for approving the final SOI by one calendar month to 31 July 2022. It is proposed that the final SOI be considered at the Committee’s 29 July meeting. Further changes can be requested when the final SOI is considered for approval. 

 

8.    The proposed final SOI must be confirmed by the Wellington Water Board before it is submitted to the Committee for approval. The Board is expected to consider the proposed final SOI at its meeting to be held on 13 July 2022. 

 

Discussion 

 

9.    A summary of the specific feedback received is provided as Appendix 1 attached to the report.

 

10.  Wellington City Council discussed the draft SOI at its Infrastructure Committee meeting on 27 April 2022 and determined that they supported the proposed focus on looking after existing infrastructure and completing targeted growth investments, and the SOI overall. 

 

11.  The feedback identified as received from Porirua City Council reflects the feedback obtained from the engagement of the Water Reform Programme Director, Dougal List, across the shareholding councils. 

 

12.  No specific feedback was received from Hutt City, Upper Hutt City, or South Wairarapa District Councils. 

 

 

 

13.  The substantive feedback relates to the following issues: 

 

i.     recognition of the fluoride dosing issue and the associated independent review; 

 

ii.    recognition of the potential impacts of the water reform transition and the need for Wellington Water Limited to effectively participate in the transition process to ensure the best long-run outcomes for water services customers in the region; 

 

iii.   the need to be clear on key priorities and risks to achieving these through the transition period; and

 

iv.   finalisation of the performance measures. 

 

14.  The proposed response, including the connection to the Letter of Expectations, is outlined alongside the feedback in Appendix 1. Broadly speaking the proposal is to: 

 

i. reference the fluoride dosing issue and associated review; and the impacts of reform in the relevant sections of the document and establish appropriate performance measures for each; and 

 

ii.  develop a set of recommended performance measures that recognise the priority activity areas; the funding provided; and any impacts from the reform and transition process. These will be presented to and consulted with the Transition Governance Group (discussed in a separate paper on water reform included with the agenda for this meeting) before being included in the final SOI for approval. 

 

 

Appendices

No.

Title

Page

1

Statement of Intent Feedback Tracking Table

38

    

 

 

 

 

 

 

 

Author: External Author (Wellington Water Ltd)

 

 

 

 

 

Approved By: Wendy Walker

Chief Executive, Porirua City Council

 


Attachment 1

Statement of Intent Feedback Tracking Table

 






                                                                                       1                                                             27 May 2022

 

Wellington Water Committee |

Komiti Ngā Wai Hangarua

12 May 2022

 

 

 

File: (22/1165)

 

 

 

 

Report no: WWC2022/3/93

 

Wellington Water Limited - Company Update

 

 

 

 

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

 

Recommendation

That the Committee receives and notes the report.

 

How to Read this Report 

There are four parts: 

i.     Governance Update 

ii.    Key Issues 

iii.   Water Committee Priorities 

iv.   Operational Update 

Governance Update 

2.    The key governance conversations held by the Wellington Water Board since the last Wellington Water Committee include: 

§ Completing a review of strategy, risk appetite and ensuring the company values are integral to decisions of the company; 

§ Updating the company strategy to focus on providing core services, planning for 2024/27 and providing staff with a good transition experience over the next two years; 

§ Meeting with the new Audit New Zealand audit lead for the Wellington Water Audit review;  

§ Reviewing the Q3 performance; and 

§ Completing a workshop with the Inquiry Lead of the Fluoride Inquiry. 

3.    For the next two years the focus of the company is to: 

§ Provide key customer services: providing safe drinking water; managing the networks and providing services to customers; meeting wastewater environmental performance; and approving land development consents and new connections continuing to develop the capability to enable this; 

§ Deliver on the renewals and upgrades in the capex programme; 

§ Build a three year programme (2024/27) which continues to provide core services and deliver renewals and upgrades and provide a 10 year investment plan which identifies key activities and risks; and  

§ Look after our people, continue to build capability and prepare them for a good transition experience. 

4.    Over the next month we will refine the Statement of Intent (SOI) to ensure it conveys this focus and our effort is sized to match the funding levels agreed by councils. 

5.    A new Auditor will audit Wellington Water’s financial and non-financial performance for the financial year 2021/22. The Board have met with the auditor. The audit will run to a later than expected timeframe than usual. The auditor advises the final audit will be completed by the end of November so the Annual Report can be published within the statutory timeframe of the end of November. The auditor is currently working with councils to ensure the timing matches their own reporting deadlines. 

6.    Overall the Q3 performance is satisfactory. Safe drinking water has been provided to the Metropolitan area of Wellington and improvements continue to be made in the SWDC. Customer service for March was 83% resulting in an average of 72% for the quarter which is our biggest quarter in terms of customer contact numbers. Environmental performance of our treatment plants continues to improve. Capex delivery is on track for the middle of the range and we expect to expend the fiscal stimulus funds. Fluoride dosing performance has been added to the SOI measures which are reported quarterly (see Appendix 2 attached to the report). 

 

 

 

Key Issues 

Fluoride Dosing  

7.    Wellington Water Limited has formed a project team to ensure fluoride dosing resumes at the Te Mārua, and the Gear Island plant and that the reliability of Wainuiomata and Waterloo plants is improved. 

8.    Good progress has been made at the Wainuiomata and Waterloo plants. The Quarter 3 results attached provides the dosing achieved over the month of April. 

9.    Resuming fluoridation at the Te Mārua and Gear Island plants will involve new and improved facilities which will be containerised. The Wellington Water Board have endorsed a funding application to Greater Wellington Regioinal Council (GWRC) to complete this work.  

10.  From 1 July 2022 the Ministry of Health will be responsible for fluoridation of drinking water supplied. It is expected the standard will require fluoride dosing at a rate within the stipulated limit of no less than 95% of the time. This expectation will be across all suburbs including Petone and Korokoro which currently don’t receive fluoride. A strategic case is currently being prepared to ensure that the final configuration of fluoride facilities meets this impending standard. Once an arrangement is agreed then a further funding request will be made to GWRC to set in place the final fluoride dosing arrangements. The two containerised facilities delivered in the short term will be utilised in the final configuration. 

11.  The Committee should note the fluoride dosing level at Gear Island reflects the fluoride dosing of drinking water at Wainuiomata mixed with un-fluoridated water at Gear Island before being provided to Wellington.  

12.  Chair Comments - The fluoride dosing rates at the four Wellington metropolitan water treatment plants have now been included as part of the quarterly performance reports as a supplementary SOI measure. This will provide the Committee with consistent reporting on the fluoride levels by quarter and year to date. 

13.  The Wellington Water Board and the Chair and Deputy Chair of the Water Committee attended a workshop with Doug Martin, the Lead of the Independent Inquiry, on 17 May 2022. The purpose of this workshop was to discuss progress of the Inquiry and his broad observations and findings to date.   

14.  To date, Martin Jenkins has completed 30 interviews and reviewed over 400 documents as part of this Inquiry and the Board will provide an update on progress and next steps soon. 

Environmental performance at Wastewater Treatment Plants 

15.  Within this agenda you will receive performance reports for individual treatment plants. These will be provided monthly and be part of regular reporting. 

16.  It is very pleasing to see the improvements being made to the performance of plants being operated by Veolia.  

The Water Committee Priorities 

Capex Delivery 

17.  In March there was a fatality at the Omāroro Reservoir construction site when a worker sustained a serious head injury following a fall. The site was closed for 2 days and a whakawātea (blessing) was held at the site prior to it reopening.  The head contractor, HEB, provided a summary of events and an update on the investigation at the Health and Safety Leadership Forum in March 2022. 

18.  As at the end of April 2022, the capital programme is tracking within the capital range, with a year to date spend of $128M.  We are forecasting to spend $159.5M by the end of Q4.   

19.  Forecasts for all councils were reviewed at the end of Q3, and the forecasts for WCC, GWRC, PCC and HCC were revised. 

20.  The draft Year 2 and 3 Programme (Y2&3) has been out for consultation with panels and our internal business owners.  We are now issuing draft papers to the councils with the proposed programme and setting up discussions with them to go through the proposed approach and programme. Our approach is to over-programme Year 2 by 120% for all councils, except SWDC, to mitigate against the risk of under-delivery. 

21.  There are a number of major projects entering the construction phase.  There has been delay in Omāroro and the GWRC projects that will negatively impact the forecast this year, however the pipeline of work with contracts awarded for 2022/23 is looking solid.  

22.  The top issues continue to be impacts of the COVID Pandemic, including material shortages and a shortage of skilled people to deliver the growing programme. 

Workforce Capability 

23.  On 25 March 2022, 16 school leavers completed the Skills Development Course, including six young women (37.5%), and nine people that identified as Māori (56%). Ten graduates have been employed by WWL and Fulton Hogan as part of our Customer Operations Group, and the remainder with members of our Contractor Panel - two by Brian Perry Civil, two by Construction Contracts Limited, and one each to GP Friel Limited and Hydrotech. 

24.  The feedback from both the graduates and employers has been positive.  We are currently reviewing the programme and looking to apply our learnings for another programme that we plan to run later this calendar year. 

 

 

Water Reform 

25.  WWL and all councils, continue to work with the National Transition Unit (NTU) to provide information and support to Water Reform. The key tasks are as follows: 

i.     Responding to requests for information – we have provided responses on Three Waters Workforce and Data and Digital and are working on a response on Commercial and Legal due diligence. 

ii.    Providing personnel to be on advisory and steering groups and secondments. Any staff released to the transition arrangement will impact on WWL’s ability to deliver core business for councils.  

26.  The next big milestone will be the set-up of the new local establishment entity and the local transition team to support it. 

Three Waters Risk Profile 

27.  The company’s current risk profile is attached as Appendix 1. As usual this is available to the public on our website. 

Operational Matters 

Update on Regulation 

28.  The move of regulatory responsibilities for drinking water from the Ministry of Health to Taumata Arowai has resulted in there being no requirement for an annual compliance report. As a result, Wai Comply has been engaged (under the Ministry of Health they were our assigned Water Assessor) to provide an independent verification of Wellington Water Limited’s compliance for this financial year. This will ensure Wellington Water Limited maintains an unbroken record of its compliance. 

29.  Taumata Arowai appears less confident that the new drinking water standards will be passed into secondary legislation by 1 July 2022 and that the Taumata Arowai rules and regulations will also be ready by 1 July 2022. 

30.  This places WWL in a position of continuing to work preparing for regulation with the draft rules. It is expected that Taumata Arowai will soon inform the sector that implementation of the rules will be delayed till November 2022 or potentially January 2023. 

31.  The Source Water Risk Management Plans are on track for delivery 1 July 2022. Indications are that the draft Taumata Arowai rules will see the level of treatment required in SWDC sources increase. The Safe Drinking Water Committee will consider this and provide clarity – it does highlight the uncertainty that is created in having the rules still in a draft form so close to implementation date.

 

 

Fiscal Stimulus 

32.  We are on track to complete the fiscal stimulus funding work and expend available funds by the 30 June 2022 deadline. It is very difficult to land a programme this size to the exact dollar, and this will require some finessing between workstream budgets and between stimulus and opex funds. 

33.  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. 

34.  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 Long Term Plan budgets in most cases. 

30 Year Strategy 

35.       The NTU advises that it is expected that the investment requirements for the new entity will be developed by the new entity (initially the Local Transition Team (LTT), prior to the establishment of the Local Establishment Entity (LEE) under the new legislation). This will be in the form of an entity-wide Asset Management Plan (AMP). The process of engagement with councils and the public on this AMP currently remains unclear, but it appears likely that the proposed public engagement by WWL on the regional 30-year investment direction (as developed by the Committee in September 2021 together with the Wellington Water Board) will cause confusion. 

36.       WWL is instead intending to focus on preparing investment proposals for the 2024-27 period for inclusion in the Entity C AMP and to work with mana whenua to prepare a document setting out the major investments required over the next 10 years that can be shared with councils and the LTT/LEE. Both of these investment plans would reflect the established 30-year investment direction. WWL will continue to engage with the NTU to ensure that this work and the outputs are consistent with the transition work plan.  

Land Development 

37.  We are currently on track to deliver six Council growth plans (SOI 7). The draft, graphics, layout and content for the Growth Plans were completed in Q3. The team is progressing well to refine the first Growth Plans for each Council by June 2022. The plans will outline our approach to delivering Growth through an adaptive framework and be informed by previous growth studies, and current activities in the growth programme where funded.  

38.  We continued to input into our councils’ statutory planning processes related to growth (SOI 8). Including District Plans for Wellington City Council, Hutt City Council and Wellington Regional Growth Framework (WRGF) for GWRC.  

39.  In regard to working with other major infrastructure providers, a Memorandum of Understanding between Waka Kotahi and WWL has been signed for the delivery of the Riverlink Project. Discussions continue with Kāinga Ora, the Te Aranga Alliance and Porirua City Council on delivery of new housing (during consenting) and the three major 3-W projects to support new housing in the Eastern Porirua Regeneration Project Development. For Let’s Get Wellington Moving, the cost estimates for 3-W proposals are being developed for the Golden Mile Project  

40.  The team continues to advise on building and resource consents for our councils at a sustained high volume in the past quarter.  

41.  Growth Planning in Wellington City, Western Porirua, Upper Hutt and South Wairarapa are gaining momentum having completed a quarter with a significant effort to progress several growth studies and plans due for delivery in Q4.   

42.  Overall, the key risks are impacts of staff turnover, COVID, resourcing our teams, changes to housing regulations that impact how we plan water servicing and sustained high volume of consents.  

 

 

 

 

 

Appendices

No.

Title

Page

1

Wellington Water Key Risks - Performance Summary Quarter 3 - 2021-2022

50

2

Wellington Water Statement of Intent Results

54

    

 

 

 

 

 

 

 

Author: External Author (Wellington Water Ltd)

 

 

 

  


Attachment 1

Wellington Water Key Risks - Performance Summary Quarter 3 - 2021-2022

 





Attachment 2

Wellington Water Statement of Intent Results

 







                                                                                       1                                                             27 May 2022

 

Wellington Water Committee |

Komiti Ngā Wai Hangarua

12 May 2022

 

File: (22/1166)

 

 

Report no: WWC2022/3/94

 

Wellington Water Limited - 2021-24 Water Services Investment Update

 

 

 

 

1.    To provide an update on progress with, and the outcomes of shareholding councils’ 2021-24 three waters services investment.  

 

 

Recommendations

That the Committee: 

 

(1)   notes that the Councils’ 2021-24 three waters investment represents a step up towards rebuilding strong networks that can deliver the services and environmental outcomes communities have signalled they want; 

 

(2)   notes that even with the increased investment for this period, the current situation will not change quickly, and the aging pipe network and backlog of renewals means bursts and leaks will continue to cause unplanned work and disruption that place pressure on operational budgets and resources; 

 

(3)   notes that Wellington Water Limited is on-track to meet the forecast level of capital expenditure in three waters infrastructure over 2021-24; 

 

(4)   notes that the capital works programme will continue to evolve in response to the needs of the network to include a different mix of projects to that envisaged when the councils Long Term Plans (LTPs) were set, but continues to support the achievement of the region’s strategic objectives for the water services; 

 

(5)   notes the anticipated high level of operational expenditure for reactive maintenance of aged assets has been experienced and will continue to be required until these assets are renewed; 

 

(6)   notes Wellington Water Limited is discussing the final operational expenditure budgets needed for 2022-23 and 2023-24 with each individual council, based on continuing cost pressures and increasing reactive maintenance requirements; and 

 

(7)   notes that an assessment of 2021-22 investment performance and anticipated performance over the remaining two years of the current Long Term Plans (LTP) will be presented to the Committee at its July 2022 meeting to support its review and approval of Wellington Water’s 2022-25 Statement of Intent (SOI). 

 

Background 

2.    Councils’ 2021-24 three waters investment represents a step up towards rebuilding strong networks that can deliver the services and environmental outcomes communities have signalled they want. Councils have increased their operational and capital budgets and Wellington Water Limited’s (WWL) total 2021-24 budget is substantially larger than it was in 2018. 

3.    In July 2021 the Committee was presented with the paper “2021-24 Water Services Investment”1 outlining what was expected to be achieved with the agreed levels of funding; the operational risks that remain from historical funding levels; and the emerging factors arising since budgets were struck that may have deliverability impacts.  

 

4.    The Committee acknowledged that even with the increased investment for this period, the current situation would not change quickly. The aging pipe network and backlog of renewals means bursts and leaks will continue to cause unplanned work and disruption, placing pressure on operational budgets and resources. Unplanned work is often more expensive to carry out, is more disruptive, difficult to budget for, that subsequently results in less funding being available for the proactive maintenance. 

5.    As the end of the first year of the investment period approaches, with decisions being made on the available funding for the remaining two years, and with pending water sector reform impacting on the operating context, it is useful to reflect on whether the expected outcomes set out in that paper have come to pass. 

6.    This paper provides a high-level of assessment of current and forecast performance based on the information available to-date. It is anticipated that a more fulsome assessment will be provided for the July 2022 meeting that captures performance over the full year and councils’ final decisions on 2022/23 funding. That assessment will be presented alongside the proposed final version of WWL’s 2022-25 SOI, to support the Committee’s approval of that document. 

Capital delivery is ramping up over the three years, with a focus on renewals and some major strategic investments 

7.    The 2021-24 capital programme is the largest in Wellington Water’s history. This has required an increase in delivery capacity and capability across the supply chain. This capacity needs to be established on a sustainable footing to ensure it is retained in the region in the longer term. To achieve this, capital delivery is being managed as a three-year plan, with output increasing progressively over time. Annual delivery targets have been specified as a range, rather than setting annual targets that can have high degrees of variability. 

8.    The current forecast is that WWL will deliver approximately $160m of capex in 2021/22. This is within the expected range of $148-191m, as shown in the figure below.   As we approach the end of this financial year and the capital programme for 2022-24 is firmed up with councils, adjusted forecasts will be provided for years two and three of the LTP that reflect the sustained and progressive uplift described above and indicated by the dashed red line in the figure below. 

 

9.    An increase in the rate of renewals has been sought by most of the councils. Investments in looking after existing infrastructure, including renewals, was forecast to represent around $275m, or 47% of the total LTP capex over the three years. WWL is currently working with the councils to confirm their 2022-2024 capital programmes, but this strategic priority area is anticipated to remain as the primary focus of investment. 

10.  The capital programme includes a number of major projects that address critical asset risks and strategic objectives. These include the Silverstream Bridge (critical asset risk), Omāroro Reservoir (resilience and growth for Wellington City), the Te Mārua water treatment plant optimisation (water supply security) and the Barber Grove to Seaview Wasterwater Treatment Plant Main Collecting Sewer duplication (growth and environmental water quality). A prioritisation framework has been applied across the programme to assist with the management of project resources and governance. 

11.  WWL has utilised some of the stimulus funding to develop a “fast track” catchment renewal process that enables the more efficient delivery of standard renewals, utilising trenchless pipe-laying techniques where practical. This process will now be applied more widely to increase the effectiveness of the renewals programme.  

Rising costs will mean that less is delivered for the available funds  

12.  The LTP capital programme was developed in the uncertain environment of the COVID pandemic and potential cost risks were signalled at the time. The impacts on the supply chain, both materials and labour, have proven to be even greater than had been anticipated and significant inflationary pressure is being felt right across the economy. 

 

13.  WWL continues to work with its supply chain to try and manage these risks, but project out-turn costs and cost estimates are now consistently higher than forecast. The end result is that less will be able to be delivered for the funds that have been made available.

14.  The capital programmes that have been recommended for 2022-24 have been developed with a view of both deliverability and investment prioritisation to ensure the available funding is used most effectively.  

15.  The major projects, that originally made up nearly 50% of the total capex budget, will make up a greater share of the total budget due to both the number of large projects now underway in the region and the number entering construction phase.  This will have an impact on the share available for renewals (noting that some major projects are themselves renewals, and that the fast-track renewals will increase relative effectiveness). 

Limited investment has been provided to address water security, water quality, and climate change  

16.  Just 13% of the original LTP capital programme was allocated to address the strategic objectives of ensuring there is a sustainable supply of, and demand for drinking water; improving environmental water quality; and increasing resilience to climate change (including reducing emissions). There has been no substantive change to the overall make-up of the programme, so little progress will be made in addressing these issues.  

17.  As noted in the 18 March 2022 Committee meeting, the water security situation for the Wellington metro area continues to deteriorate and the risk of summer water shortages remains high. The call for investment in water quality and climate change will likely increase as the respective policy processes play out over the coming months. 

Opex costs will remain high while the asset fleet remains in aged condition 

18.  Councils have responded well to the identified network issues to increase the level of investment in renewals across the region. However, the increase will not yet reduce the impacts of the aging network, nor is it sufficient to begin to noticeably reduce the backlog of renewals identified. The LTP investment advice noted that ongoing faults and failures should be expected and could conceivably increase. 

19.  In response to this, councils increased their operational investment levels from a regional total of $79 million in 2020/21 to an average of $93 million per year in the 2021-24 investment period (excluding stimulus funding).  

20.  This increase was not expected to be sufficient to meet actual operating requirements, with the rate of unplanned failure of aged assets requiring a higher level of reactive maintenance investment than had been funded. Government stimulus funding was made available to subsidise basic operational requirements while it was available.  

 

21.  The outcome has been much as anticipated, with actual operating costs for 2021/22 forecast to be around $102m, or $9m higher than the average annual LTP budget for this 3-year period. While some of this additional funding has enabled an increase in planned maintenance activities and improvements to asset management practices, much of this increase has gone towards reactive maintenance activities. Given that there has been no substantive change to the overall condition profile of the assets, it should be expected that unplanned failures, and the associated costs will continue for coming years. 

Investment in condition assessment and asset management systems will reduce failure risk over time  

22.  The 2021-24 investment plan has seen a significant uplift in condition assessment activities, with a particular focus on the most critical assets. This uplift has been funded through a combination of LTP and stimulus funding. Understanding asset condition enables the risk of failure to be better understood, and interventions to be undertaken that reduce the risk of unplanned failures occurring. 

23.  The outcomes of the condition assessment programme are being incorporated into the capital programme and planned maintenance schedules. The risk of failures will progressively reduce accordingly, ultimately resulting in reduced reactive maintenance costs. 

24.  Budgeted condition assessment activities remain well below the $10m per year WWL estimates would optimally be applied across the region’s assets. There is insufficient capability and capacity available to complete this level of activity, and WWL will continue to work with the sector to progressively expand the resources that are available. 

25.  Effective asset management requires good information on asset condition and performance, effective strategies for ensuring the assets maintain performance, and investment in the required maintenance and renewal. There are acknowledged deficiencies in the region’s asset data, and some stimulus funding has been put toward improving the overall approach to asset data and asset management. Funding will need to be continued into 2022-24 to help ensure the effective transition of the region’s water assets to the new water services entity. 

Opex funding for 2022-24 remains uncertain 

26.  With stimulus funding coming to an end, the levels of activity that were able to be achieved in 2021-22 will not be able to be continued unless alternative funding is provided. Working together with councils, and with a strong focus on maintaining the core services, WWL has identified that around $110m per annum of opex is required over 2022-24. The available LTP funding for 2022-23 is just over $82m. More than half of the funding gap is to cover the expected level of reactive maintenance, as shown in the figure below. 

27.  If this funding is not provided, the expected outcome will be a reduction in the level of service experienced by customers. The delivery focus would remain on the core requirements, such as ensuring safe drinking water, with the reduction in service being seen in lower priority areas such as the response time for minor faults.  

28.  WWL has presented recommended and LTP-compliant budgets to all councils and identified the risks and service delivery differences between them. It is the decision of councils what level of funding to provide, and what the source of funding is. Several councils are considering using the government’s “better off” funding, available as part of the water reform process, to make-up the funding gap. 

29.  WWL will require a level of budget certainty for 2022-24 at the start of the financial year to determine the levels of service and performance and to confirm the SOI. WWL will continue to work with individual councils in the coming weeks with the aim of finalising financial positions. 

Monitoring and reporting of opex costs is being improved 

30.  In order to help councils better understand where opex is being spent, and the outcomes of this expenditure, WWL is developing a model that will enable reporting of costs and performance against the associated budgets and levels of service. The model is expected to become operational for the 2022-23 financial year. 

Opex costs are also experiencing inflationary pressure 

31.  The “headwinds” that are being experienced in the capital programme around materials and people/capability are also being experienced in opex delivery. Construction costs are rising, and it is difficult to find and attract the people and skills required to deliver all of the activities in the current tight labour market. 

 

 

 

 

Additional opex costs may emerge through new regulations and standards 

32.  The opex budget proposals developed by WWL reflect the current understanding of operating requirements. As the new water quality regulator, Taumata Arowai, becomes established it will develop and implement new regulations and standards. Achieving these new requirements will likely involve investment in changes to systems and processes. WWL is working closely with Taumata Arowai to understand the approach they are taking and the consequences for its operations. 

33.  WWL is also working to better understand the risks in other areas of its operation, such as cyber security. Investment to manage these risks may require either an increase in funding or a reduction in funding for other operational areas. Any such changes will be discussed and agreed with councils as required. 

34.  Finally, the water reform process can be expected to have some impact on service delivery. Preparations for the transition of the services to the new entity can be expected to require some time and resources from WWL that is not currently budgeted. WWL will work closely with the councils, the Department of Internal Affairs and the transitional entity to attempt to minimise any impacts on services to customers.  

 

 

Appendices

There are no appendices for this report.    

 

 

 

 

 

 

 

Author: External Author (Wellington Water Ltd)

 

 

 

  


                                                                                       1                                                             27 May 2022

 

Wellington Water Committee |

Komiti Ngā Wai Hangarua

12 May 2022

 

File: (22/1168)

 

 

 

Report no: WWC2022/3/95

 

Wellington Water Limited - Drinking Water Regulation Update

 

 

 

Purpose of Report 

 

1.    The purpose of this paper is to inform the Committee of how Wellington Water Limited (WWL), compliance reporting will be completed for FY 2021/22 and moving forward for FY 2022/23 under Taumata Arowai. 

 

Recommendations

That the Committee: 

 

(1)   notes that Taumata Arowai does not require an annual compliance report for FY 2021/22;

 

(2)   notes that Wellington Water Limited has contracted Wai Comply to complete an independent assessment for FY 2021/22;

 

(3)   notes the intention of Wellington Water Limited to include a compliance report within the quarterly performance reports for FY 2022/23; and

 

(4)   notes any significant exception to the provision of safe water will still be reported immediately.   

 

Background 

 

3.    FY 2021/22 saw the transition in November 2021 of the Drinking Water Regulator from the Ministry of Health to the newly formed Taumata Arowai. Taumata Arowai kept in place the New Zealand Drinking Water Standards and rules while it prepared new standards and rules which are intended to come into force 1 July 2022. 

 

4.    This paper outlines WWL’s plan for demonstrating compliance for the current year and the compliance reporting that will be in place to the Board from 1 July 2022. 

 

Compliance Reporting FY 21/22 

 

5.    Historically an assessment of the performance of WWL against the Drinking-Water Standards for New Zealand 2005 (Revised 2018) (DWSNZ) and Health Act 1956 (the Act) was completed for each annual compliance period (1 July – 30 June). These assessments were undertaken by the Wai Comply Assessment who acted as a Drinking-Water Assessor (DWA) designated by the Director-General of Health to perform assessments as per their functions defined in Section 69ZL of the Act. Wai Comply also received the assurance and monitoring data from WWL throughout the year and were notified in their capacity as our DWA of any notifiable issue. 

 

6.    In November 2021 Taumata Arowai assumed the role as regulator and has not designated Drinking-Water Assessors. This is due to Taumata Arowai moving the role of the regulator away from certifying compliance to a compliance model where the burden is on industry to demonstrate compliance. Taumata Arowai has been completing work on a new online portal to receive compliance data from water suppliers and a new set of standards and rules – both are scheduled to come into force 1 July 2022.  

 

7.    The result is that for the FY 2021/22 there has been a regulatory reporting gap which results in WWL not being required to submit a compliance report to Taumata Arowai for FY 2021/22. It is in the interests of WWL to have a form of independent verification of our performance against the current DWSNZ, and our fulfilment of our duties as a water supplier to provide our customers with assurance of the quality of the water supplied by WWL and maintain our trusted operator status. Accordingly, Wai Comply has been contracted to complete an independent assessment of our performance for FY 2021/22, with clear exceptions relating to the current legislation (Water Services Act 2021) and the repeal of the related Health Act clauses. 

 

8.    Wai Comply will complete their audit and workshop activities by mid-August with the final report submitted 1 September 2022.  Taumata Arowai has endorsed this intention and view it as demonstration of WWL’s proactive attitude to compliance.  

 

Compliance Reporting FY 2022/23 

 

9.    Taumata Arowai has indicated that the reporting period will move from the financial year to the calendar year to align with other central government regulators’ reporting periods. 

 

10.  Taumata Arowai are yet to finalise and promulgate the new New Zealand Drinking Water Standards, Quality Assurance Rules, Aesthetic Values, and Environmental Performance measures. Indications are that Taumata Arowai is still considering some significant changes that may see an additional medium water supply category for populations under 5000.

       Such a change would see a significant reduction in the compliance requirements of the South Wairarapa supplies from that currently indicated in the draft rules.

  

11.  It is therefore difficult to see Taumata Arowai being in a situation to promulgate these rules and standards by 1 June 2022, and they may well be delayed until January 2023 to align with the new reporting period. What is sure is that the rules when promulgated will create a significant change and there will be a period of compliance reporting transition that the Committee will rightly wish to track.

 

12.  Accordingly, a compliance report will now be included in the quarterly performance report to the Board which will provide the Board oversight of WWL’s compliance throughout the reporting year. The attached sample report provides the intended format of the future quarterly compliance report, and the intention is to provide the first fully populated report at the end of Q1 2022/23.  Also included in the report are the wider duties WWL has under the Water Services Act 2021 and fluoridation performance.  

 

Conclusion 

 

13.  WWL has taken appropriate steps (endorsed by Taumata Arowai) to put in place internal compliance reporting throughout the transition to the new regulator and rules. This will see an assessment of our compliance being completed by Wai Comply under the current standards for FY 2021/22; and a quarterly report programme commencing Q1 FY 2022/23 to the Committee.  

 

14.  While we are preparing for the new rules to come into force on 1 July 2022 there is still considerable uncertainty around aspects that will affect our compliance reporting requirements (especially for South Wairarapa networks). It is likely that some form of delay may occur in the promulgation of the new standards, but regardless WWL is well placed to demonstrate its level of compliance ending FY 2021/22 and moving into FY2022/23. 

 

 

Appendices

No.

Title

Page

1

Sample Drinking Water Compliance Report

71

    

 

 

 

Author: External Author (Wellington Water Ltd)

 

  


Attachment 1

Sample Drinking Water Compliance Report

 










                                                                                       1                                                             27 May 2022

 

Wellington Water Committee |

Komiti Ngā Wai Hangarua

12 May 2022

 

 

 

File: (22/1167)

 

 

 

 

Report no: WWC2022/3/96

 

Wellington Water Limited - Wastewater Treatment Update

 

 

 

 

 

Purpose of Report 

 

1.    To provide an update to the Committee on the Wastewater Treatment Plant Review recommendations. 

 

Recommendations

That the Committee: 

 

(1)   receives the report;

 

(2)   notes good progress on the wastewater treatment plant review; and 

 

(3)   endorses the new reporting method for reporting wastewater treatment plant environmental performance. 

 

 

Context 

 

3.    During November and December 2021 Wellington Water Limited (WWL) undertook a review of its end-to-end Wastewater Treatment Plant Operations. The review recommended 5 areas for the company and their wastewater operator Veolia to focus on. All recommendations were approved by the Board of WWL. 

 

4.    This paper provides an update on the progress against the review recommendations. A high-level programme contained in Appendix 1 attached to the report summarises progress. 

 

Key Points 

 

Regional Wastewater Treatment Plant Implementation 

 

5.    The working relationship between Veolia and WWL has improved and this is resulting in improved cohesion between the two organisations. The two parties have proactively engaged in several workshops and formed working parties that are delivering and shaping up further improvements.  

 

6.    WWL and Veolia have worked in collaboration to agree on an optimum structure to compliment their strengths and improve environmental outcomes. Key positions from both structures have been recruited. Further recruitment is ongoing; however, this is hampered by a constrained labour market. 

 

7.    Improvements in the notification processes have been delivered and asset management workshops have been completed for the Porirua and Seaview plants. 

 

Current Performance 

  

8.    Environmental performance of the treatment plants under the Regional Wastewater Treatment Plant (RWWTP) contract have shown significant improvement and are largely compliant except for the longer run rolling 90 day mean for faecal coliform bacteria at the Seaview Plant. The 90 day mean is a measure of the effectiveness of the overall treatment over a three-month period. Seaview is however tracking towards compliance, which is expected by mid-June. 

 

9.    WWL has developed high-level performance summaries for all eight Wastewater Treatment Plants (4 in South Wairarapa and 4 in the Metropolitan area) These are included in Appendix 2 attached to the report. These high-level performance summaries are designed to provide a high-level assessment of performance. Detailed information on each can be provided if people want to dig a little deeper. 

 

10.  For Moa Point, we have an abatement notice which was issued as the quality of the discharge from the plant was not meeting consent requirements. We have recently resolved the most recent issue at the plant with the completion of repairs to the disinfection system. However, the abatement notices required us to have resolved this sooner (by December 2021), which we were not able to do due to the nature of the fault. We are now compliant and need to remain this way to avoid further sanctions. 

 

 

 

 

 

 

 

Current Risks 

 

11.  One of the three clarifiers at Moa Point has broken down. A bearing that enables the clarifier scraper to rotate has failed and needs to be replaced. The work is expected to take up to 9 months. Under normal conditions the Moa Point plant can operate with two clarifiers, but in heavy rain events it requires all three to work. It is predicted that the environmental performance of the plant will deteriorate during heavy rain over winter, putting consent compliance at risk and complicating the lifting of the abatement notice. 

 

12.  We have further improved our understanding of the environmental performance and likely investment requirements of the four South Wairarapa treatment plants since the last Long Term Plan. There is a need to agree ongoing improvement priorities in light of funding constraints with GWRC and SWDC involvement. Current funding levels will not achieve full consent compliance. 

 

Conclusion  

 

13.  Good progress continues to be made on the RWWTP Programme. It is currently on track and the key improvements will be completed by 30 June 2022.  

 

 

Appendices

No.

Title

Page

1

Wastewater Treatment Plant - Review Implementation Dashboard

83

2

Wastewater Treatment Plant Performance Summary

84

    

 

 

 

 

 

 

 

Author: External Author (Wellington Water Ltd)

 

 

  


Attachment 1

Wastewater Treatment Plant - Review Implementation Dashboard

 


Attachment 2

Wastewater Treatment Plant Performance Summary

 









MEMORANDUM                                                  1                                                             27 May 2022

Our Reference          22/900

TO:                      Chair and Members

Wellington Water Committee | Komiti Ngā Wai Hangarua

FROM:                Annie Doornebosch

DATE:                06 May 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, officers and Wellington Water Limited staff 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 Committee Forward Programme 2022

94

    

 

 

 

 

 

 

Author: Annie Doornebosch

Democracy Advisor

 

 

 

 

 

 

Reviewed By: Kate Glanville

Senior Democracy Advisor

 

 

 

Approved By: Kathryn Stannard

Head of Democratic Services

 

 

 


Attachment 1

Wellington Water Committee Forward Programme 2022