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Komiti Ngā Wai Hangarua| Wellington Water Committee

 

 

27 September 2022

 

Order Paper for the meeting to be held in the

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

on:

 

 

Friday 30 September 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 S Rush

Wellington City Council (Alternate)

Ms N Solomon

Te Rūnanga O Toa Rangatira (Alternate)

Deputy Mayor H Swales

Upper Hutt City Council (Alternate)

Ms K Tamanui

Taranaki Whānui ki Te Upoko o Te Ika (Alternate)

 

 

For the dates and times of Council Meetings please visit www.huttcity.govt.nz

 


Wellington Water Committee

Terms of Reference

 

Purpose

The Wellington Water Committee ("the Committee") is established to:

§   Provide governance and leadership across issues which are related to the planning, delivery and management of water services to communities serviced by Wellington Water Limited;

§   Provide governance oversight of Wellington Water Limited, including by exhibiting good governance practice;

§   Provide a forum for the representatives of Wellington Water Limited's shareholders and mana whenua to meet, discuss and co-ordinate on relevant issues and, through their representatives, to exercise their powers; and

§   Strive for consistency across all client councils so all customers receive a similar level of service.

 

Status

The Committee is, for the purposes of the Local Government Act 2002, a joint committee of the Lower Hutt City Council, Porirua City Council, Upper Hutt City Council, Wellington City Council, South Wairarapa District Council and the Wellington Regional Council.

 

Specific responsibilities

The Committee's responsibilities are:

Governance oversight responsibilities

Shareholder and mana whenua governance oversight of Wellington Water Limited and of the network infrastructure for the delivery of bulk water, water reticulation, wastewater and stormwater services in the geographical areas of Wellington Water Limited's operations, including by:

§   Receiving and considering the half-yearly and annual reports of Wellington Water Limited;

§   Receiving and considering such other information from Wellington Water Limited as the Committee may request on behalf of the parties to the Shareholders and Partnership Agreement and/or receive from time to time;

§   Undertaking performance and other monitoring of Wellington Water Limited;

§   Considering and providing recommendations to the parties to the Shareholders and Partnership Agreement on proposals from Wellington Water Limited;

§   Providing co-ordinated feedback, and recommendations as needed, on any matters requested by Wellington Water Limited or any of the parties to the Shareholders and Partnership Agreement;

§   Providing recommendations to the parties to the Shareholders and Partnership Agreement regarding regional studies which the Shareholders need to be cognisant of;

§   Providing recommendations to the parties to the Shareholders and Partnership Agreement regarding water conservation;

§   Agreeing the annual Letter of Expectation to Wellington Water Limited;

§   Receiving, considering and providing agreed feedback and recommendations to Wellington Water Limited on its draft statement of intent;

§   Receiving, considering and providing recommendations to the parties to the Shareholders and Partnership Agreement regarding Wellington Water Limited's final statement of intent.

§   Agreeing when Shareholder meetings, or resolutions in lieu of Shareholder meetings, are required, without prejudice to Shareholder and Board rights to call meetings under Wellington Water Limited's constitution and;

§   Seeking and interviewing candidates for Wellington Water Limited's Board as needed and recommending to the holders of Class A Shares appointments and/or removals of directors of Wellington Water Limited;

§   Recommending the remuneration of directors of Wellington Water Limited;

§    Monitoring the performance of the Board of Wellington Water Limited; and

§   Providing recommendations to the parties to the Shareholders and Partnership Agreement regarding changes to these terms of reference, the Shareholders and Partnership Agreement and the constitution of Wellington Water Limited.

 

Membership

The membership of the Committee will be as specified in the Shareholders and Partnership Agreement.   With the exception of the Committee Members nominated by the Mana Whenua Partners Entities, each appointee must be an elected member of the appointing Shareholder.

 

Chairperson

The Chairperson and Deputy Chairperson will be elected by the Committee once all Committee members have been appointed.

 

Quorum

Subject to the below for Committee meetings to appoint directors of Wellington Water Limited, for a meeting of the Committee to have a quorum, a majority of Committee Members, or their appointed Alternates, must be present, and the number making up the majority must include at least an equal number of Shareholder appointed Committee Members as MWPE nominated Committee Members.

Where the Committee is providing a forum for the Shareholders to meet and exercise their powers in relation to Wellington Water Limited, the requirements of Wellington Water Limited's constitution will prevail.

Clause 11.3 of the company’s constitution provides that Directors shall be appointed and removed by the unanimous resolution of the Shareholders holding Class A Shares. For this matter the quorum for the Committee meeting is therefore attendance by all Committee Members (or their Alternates) for the holders of the Class A Shares.

 

Alternates

Each Committee Member appointed to the Committee must have an Alternate.

Other Shareholder attendee

Each Shareholder-appointed elected member Committee member will be entitled to invite an officer attendee to Committee meetings, provided however that the additional attendee will not have any voting rights on the Committee.

Decision-making

The Committee will strive to make all decisions by consensus.

In the event that a consensus on a particular matter before the Committee is not able to be reached, each Committee Member has a deliberative vote. In the situation where there is an equality of votes cast on a matter, the Chairperson does not have a casting vote and therefore the matter subject to the vote is defeated and the status quo is preserved.

Other than for those matters for which the Committee has effective decision-making capacity through these Terms of Reference, each Shareholder retains its powers to make its own decisions on matters referred to it by the Committee and on matters specified in Part 1 of Schedule 2 to the Shareholders and Partnership Agreement (for clarity, this means that only Shareholders have voting rights in relation to the matters specified in Part 1 of Schedule 2).

Secretariat services

Unless otherwise agreed from time to time by all of the elected member Committee Members, the Council for which the Chairperson is an elected member will provide secretariat services to the Committee.   The Chairperson will be responsible for managing the agenda at Committee meetings.

 

Standing Orders

The Standing Orders of the Council providing secretariat services to the Committee will apply to Committee meetings, subject to the provisions for meeting quorum and decision making as set out in these terms of reference taking precedence.

 

Remuneration

Each Shareholder will be responsible for remunerating the elected member Committee Member appointed by it to the Committee, and their Alternate, for any costs associated with those persons' membership on the Committee.

 

The Shareholders will also be responsible for remunerating (in equal shares) the Committee Members nominated by Mana Whenua Partner Entities, and their Alternates, and appointed to the Committee by the Shareholders, for any costs associated with those persons' membership on the Committee.

 

Administration

Reports to be considered by the Committee may be submitted by any of the Shareholders, any of the Mana Whenua Partner Entities, or Wellington Water Limited.

 

Duration of the Committee

In accordance with clause 30(7) of Schedule 7 to the Local Government Act 2002, the Committee is not deemed to be discharged following each triennial election.

Appendix

Common delegations by Shareholders

 

Governance oversight responsibilities

 

·       Each Shareholder will delegate to the Committee the responsibilities and powers necessary to participate in and carry out the Committee's governance oversight responsibilities.

 

Shareholders' responsibilities

 

·       Each Shareholder will delegate to its appointed elected member Committee Member and, in accordance with these terms of reference, that person's Alternate, all responsibilities and powers in relation to the agreement of:

 

O   when Shareholder meetings, or resolutions in lieu of Shareholder meetings, are required (without prejudice to Shareholder and Board rights to call meetings under Wellington Water Limited's constitution); and

 

o the appointment, removal and remuneration of Wellington Water Limited's directors.

 

 

    


Komiti Ngā Wai Hangarua|Wellington Water Committee

 

Meeting to be held in the Hutt City Council Chambers,

2nd Floor, 30 Laings Road, Lower Hutt on

 Friday 30 September 2022 commencing at 10.00am.

 

ORDER PAPER

 

Public Business

 

1.       Opening formalities - Karakia Timatanga (22/2238)

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

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 (22/2239)

A verbal update by the Chair.

6.       Minutes

Meeting minutes Komiti Ngā Wai Hangarua |Wellington Water Committee,

29 July 2022                                                                                                           9

7.       Reflections on the Last Three Years (22/2241)

A verbal update by the Board Chair of Wellington Water Limited.

 

 

8.       Three Waters Reforms - Department of Internal Affairs Roadmap to Day 1 (22/2338)

Report No. WWC2022/4/162 by Porirua City Council   30

CHAIR’s Recommendation:

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

 

9.       Company and Governance Update - Wellington Water Limited (22/2244)

Report No. WWC2022/4/157 by Wellington Water Limited                                                                              69

CHAIR’s Recommendation:

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

 

10.     2022/23 Investment and Delivery Snapshot (22/2245)

Report No. WWC2022/4/158 by Wellington Water Limited                                                                              76

CHAIR’s Recommendation:

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

 

11.     Actions to Manage Metropolitan Wellington's Water Supply and Usage Risk (22/2246)

Report No. WWC2022/4/159 by Wellington Water Limited                                                                              80

CHAIR’s Recommendation:

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

 

12.     Information Item - Wellington Water Committee Forward Programme 2022 (22/2242)

Memorandum dated 6 September 2022 by the Democracy Advisor                                                                             87  

CHAIR’s Recommendation:

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

    

 

 

 

13.     Closing formalities - Karakia Whakamutunga (22/2243)

Unuhia!

Unuhia!

Unuhia i te uru-tapu-nui

Kia wātea, kia māmā

Te ngākau, te tinana, te wairua i te ara takatū

Koia rā e Rongo whakairihia ake ki runga

Kia wātea, kia wātea!

Ae rā, kua wātea!

Hau, pai mārire.

Release us from the supreme sacredness of our tasks

To be clear and free
in heart, body and soul in our continuing journey

Oh Rongo, raise these words up high

so that we be cleansed and be free,

Yes indeed, we are free!

Good and peaceful

 

 

 

Annie Doornebosch

Democracy Advisor

Hutt City Council


                                                                       1                    29 July 2022

Komiti Ngā Wai Hangarua |Wellington Water Committee

 

Minutes of a meeting held via Zoom on

 Friday 29 July 2022 commencing at 10.00am

 

 

PRESENT: (via audio visual link)

Mayor C Barry (Chair) (HCC)

 

Mayor W Guppy (Deputy Chair) (UHCC)

 

Mayor A Baker (PCC)

 

Mayor A Beijen (SWDC)

 

Mayor A Foster (WCC)

 

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

 

Cr J van Lier (GWRC)

 

APOLOGIES:                   Andrea Rutene, Deputy Chair Māori Standing Committee, SWDC (Observer)

 

IN ATTENDANCE:         Deputy Mayor H Swales  (UHCC Alternate)

  (via audio visual link)       Deputy Mayor T Lewis (HCC Alternate)

Cr R Leggett (PCC Alternate)

Cr I Pannett (WCC Alternate)

J Miller, Chief Executive, HCC

N Hooper, Observer SWDC

W Walker, Chief Executive, PCC

B Hodgins, Strategic Advisor, HCC

S Proctor, Chief Infrastructure Officer, WCC

S McLean, General Manager, Corporate Services, GWRC

C Crampton, Chief Executive, WWL

C Barker, Director, Regulatory Services, WWL

                                          L Carroll, Chair WWL Board

L Southey, WWL Board Member

A Hare, WWL Board (part meeting)

D List, Project Director, Regional Water Reform, PCC

M Ford, Group Manager Business Services/Chief Financial Officer, WWL

T Haskell, Group Manager, Network Development and Delivery, WWL

J McKibbin, Group Manager, Network Management Group, WWL

J Alexander, Group Manager, Network Strategy and Planning, WWL

N Crane, Principal Advisor to CE, WWL

F Clarke, Principal Advisor, Strategy, WWL

                                           A Doornebosch, Democracy Advisor, HCC

                                           K Davey, Democracy Advisor, HCC

                                           H Clegg, Minute Taker, HCC

PUBLIC BUSINESS

 

1.       OPENING FORMALITIES - Karakia Timatanga     

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

RESOLVED:  (Mayor Barry/Cr van Lier)                             Minute No.   WWC 22401

“That the apology received from Andrea Rutene be accepted and leave of absence granted.”

3.

PUBLIC COMMENT

Comments are recorded under the item to which they relate.

 

4.

CONFLICT OF INTEREST DECLARATIONS

There were no conflict of interest declarations.

 

5.

Chair's Statement

The Chair provided a verbal update attached as page 11 to the minutes.

 

Resolved:  (Mayor Barry/ Mayor Foster)                                  Minute No. WWC 22402

 

“That the Chair’s Statement be accepted.”

 

6.       Minutes – 27 MAY 2022

 

Resolved: (Mayor Barry/Mayor Beijen)                                                                                                    Minute No. WWC 22403

 

“That the minutes of the meeting of the Komiti Ngā Wai Hangarua |Wellington Water Committee held on Friday, 27 May 2022 be confirmed as a true and correct record.”

 

 

 

 

 

 

 

 

7.       Transition Planning for Three Waters Reform

A presentation was provided by Dougal List, Project Director, Regional Water Reform, PCC attached as pages 18 to 21 to the minutes. He noted more information was expected from the National Transition Unit (NTU). He added that new Steering and Working Groups had been established. He said increased engagement with all authorities in Entity C would occur over the next month.

 

In response to questions from members the Project Director, Regional Water Reform, PCC advised it was unclear what funding would be provided after initial transition funding had been used. He said the NTU had indicated if the initial budget was not enough it would be open to discussing this further. He said the Working Group would consider a programme budget of indicative costs. He noted the challenges with this as no clear forward programme had been established by the NTU. He said they would discuss reform costs already met by councils with the Department of Internal Affairs (DIA) to see if these could be reimbursed. He advised they would discuss with the NTU any future transition costs to councils and how these could be managed. He said the NTU would focus asset management plans (AMPs) on how the Wellington region could feed into the NTU processes. He advised DIA’s early focus on the AMPs had been on understanding borrowing, investments and costs. He advised DIA had undertaken investigations to understand ownerships and holdings. He said that no information had been released from the DIA regarding charges for three waters services. He added that from 1 July 2024 the new water service entities would be responsible for billing customers. He noted that the DIA’s road map was currently being developed. He said the Allocation Schedule in the Water Services Bill would outline assets and systems to be transferred from councils. He said that councils should expect the next request for proposal process to include requests for detail on property ownership, and transfers of assets.

 

In response to questions from members the Chief Executive, WWL added that WWL was continually growing its asset management systems. He advised it was preferable if the NTU had a clear understanding of all assets as soon as possible. He noted that WWL needed to ensure its planning for each council’s water assets was in line with any future NTU requirements. He noted that all AMPs had been developed using the most up-to-date information and funding commitments from each council. He said WWL staff would be happy to revisit the AMPs with councils.

 

L Rauhina-August left the meeting at 10.42am and rejoined the meeting at 10.45am.

8.

Company and Governance Update (22/1750)

Report No. WWC2022/3/117 by Wellington Water Limited (WWL)

 

The Board Chair, WWL advised that testing of the new Te Mārua and Gear Island fluoridation plants would occur over the next two weeks. She advised work on the WWL Statement of Intent was continuing.

 

The Chief Executive, WWL elaborated on the report. He said a number of councils had significantly increased investment levels which enabled more work to be planned. He noted that WWL resources had also been increased to deliver larger work programmes. He advised an issue facing WWL was improving the quality of data received from councils to ensure it was reliable for use in asset management planning.

 

Mayor Beijen queried the wording included in part (2) (i) of the staff’s recommendations. He considered that insufficient financial data had been provided by WWL staff. He noted, as a result, South Wairarapa District Council (SWDC) was not in a position to allocate exact Long Term Plan (LTP) funding to enable the wastewater treatment plant to become compliant. He suggested that part (2)(i) of the staff’s recommendation should better reflect the situation. He noted SWDC’s extreme dissatisfaction.

 

In response to questions from members, the Chief Executive, WWL advised that part (2) of the staff’s recommendations related to the level of investment being undertaken at present in the South Wairarapa wastewater treatment plants. He said because of this, the current compliance of the treatment plants, as noted in the dashboard, was unlikely to improve. He said that WWL had provided information for SWDC to make an informed decision on the level of funding required for the next three years. He noted that WWL   understood there was flexibility in the SWDC’s budget to complete the wastewater treatment plant investment plan for its LTP. He said two isolating valves had recently been installed in pipes after the Dixon and Victoria Street failures. He noted that this had prevented discharge into the environment when another breakage had occurred. He added that as a result of additional funding WWL had been able to undertake more pre-storm preparation work. He noted operational funding for planned and reactive issues was restricted due to escalating costs. He added that WWL had set budgets across networks based on what WWL believed was possible to achieve. He noted that due to insufficient investment in the past there was a backlog of issues to remedy. He said the increasing leakage trend after 2016 could be attributed to the Kaikoura earthquake. He noted that leaks had been detected in both public and private networks. He said if major leaks were fixed this could delay any requirement for more water storage. He advised a new Opex Optimisation Tool had been developed to deliver risks. He said this would also provide options to rebalance funding for member councils. He said this would be included in the end-of-Quarter One report for all councils. He added that increasing staffing capacity was a priority. He advised WWL was working with their upskill programme and Mana Whenua to enable iwi Māori contracting into the future. He said they would send to members the data on workforce capability and skill programme work completed for Māori.  

 

In response to a question from a member, the Group Manager, Network Development and Delivery, WWL advised that WWL had provided information to SWDC concerning what would be required for the wastewater treatment plant to become compliant. She noted the next step would be how much those compliance requirements would cost and how long would they take.

Mayor Foster foreshadowed an additional recommendation asking WWL officers to report on options for an augmented water supply and demand/waste reduction. He further foreshadowed an additional recommendation asking for a more detailed breakdown of utilisation of OPEX and CAPEX budgets (by council).

The meeting adjourned at 11.22am and resumed at 11.30am.

Resolved: (Mayor Barry/Mayor Beijen)                                            Minute No. WWC 22404

“That the Committee:

(1)   notes high and increasing water demand is expected to require the use of outdoor water use bans to maintain water supply in the Wellington metropolitan area this summer (Level 3 water use restrictions);

(2)   notes the South Wairarapa District Council (SWDC) wastewater treatment plants continue to be non-compliant, and

(i)   SWDC has requested that Wellington Water Limited provide a costed year by year plan to rectify non-compliance to allow budget re-allocation in the current Annual Plan (2022-23) and in future financial years; and

(ii)   notes the ongoing non-compliance of treatment plants increases the likelihood of enforcement action by the environmental regulator;

(3)   notes the very high criticality assets condition assessment programme has identified the assets in need of urgent resolution; and

(4)   asks Wellington Water Limited to report on:

(i)    options for an augmented water supply and demand / waste reduction; and

(ii)   a more detailed breakdown of utilisation of OPEX and CAPEX budgets (by council).”

 

9.

Martin Jenkins Inquiry into Fluoridation (22/1767)

Report No. WWC2022/3/118 by Wellington Water Limited

 

Speaking under public comment, Mary Bryne, representing Fluoride Free New Zealand tabled her written statement attached as pages 12 to 17 to the minutes.

 

In response to a question from a member, she said that the information she had tabled was publicly available. She believed that some of the data the Ministry of Health (MOH) relied on were 14 years old. She believed the MOH should revisit the fluoridation issue and fully investigate differing views.

 

Members noted that the Committee was not considering whether fluoridation of water was a legal requirement or not.

 

 

 

 

Speaking under public comment, Mark Atkin agreed with the comments made by the previous speaker. He believed there was no legal requirement to reinstate fluoridation of water through the Te Mārua and Gear Street Treatment Plants. He considered that it made more fiscal sense to spend the money on other things.

 

Speaking under public comment, James Nicholas agreed with the comments of the previous speakers. He believed it was time local government made a public stand against fluoridation to provide a balanced debate. He believed the effects of sugary foods and drinks had more of a negative impact on oral health than any possible positive effects from the fluoridation of water.

 

Mayor Foster left the meeting at 11.54am and rejoined the meeting at 11.55am.

The Director, Regulatory Services, WWL elaborated on the report. 

Members asked staff for a clear pathway for delivering an asset management plan. They further asked for an outline of who would be responsible for this, funding requirements and a timeframe for delivery.

In response to questions from members, the Chief Executive, WWL advised that the pace at which WWL could address asset management was dependent on the level of investment from each council. He said the new quarterly Opex Optimisation Tool reports would assist council officers. He advised this would also provide an understanding of where WWL operational expenditure occurred. He noted this would assist in developing the asset management plans. He said the NTU requirements for these plans were not yet finalised. He advised officers could provide 2024-2027 WWL work programmes including areas needing further investment.

Mayor Foster foreshadowed an additional recommendation asking WWL staff to provide a proposal for an asset management plan for consideration at the next Committee meeting. Mayor Foster asked this include a plan for the collection of asset condition data, funding requirements and a timeframe for delivery.  He further requested advice on who would provide the work, with the necessary skills and resources.

 

 

Resolved: (Mayor Barry/ Mayor Foster)                                             Minute No. WWC 22405

 

“That the Committee: 

 

(1)     receives the final report; 

 

(2)    notes that the Board of Wellington Water Limited has accepted the findings and recommendations;

 

(3)    notes Wellington Water Limited’s implementation plan; and

(4)   asks Wellington Water Limited to provide by the next Wellington Water Committee meeting, a detailed proposal for producing an asset management plan including:

(a)    a plan for collection of asset condition data;

     (b)    who will provide the work with the skills and resources required;

       (c)     any funding requirements; and

(d)    the timeframe for delivery.”

 

10.

Wellington Water Limited - Final Statement of Intent 2022-25 (22/1752)

Report No. WWC2022/3/119 by Wellington Water Limited (WWL)

 

The Principal Advsior, Strategy, WWL elaborated on the report.

 

Resolved: (Mayor Barry/Cr van Lier)                                      Minute No. WWC 22406

 

“That the Committee:

(1) notes that the Wellington Water Constitution requires:

(a)   the Wellington Water Board to deliver the completed Statement of Intent 2022-25 to the Committee; and

(b)   the Wellington Water Committee to consider Wellington Water Limited’s final Statement of Intent 2022-25;

(2)   notes the draft of the Statement of Intent was provided to the Wellington Water Committee on 18 March 2022 and the subsequent feedback has been incorporated; and

(3)   receives the final Statement of Intent 2022-25 for Wellington Water Limited.”

 

11.

Fluoridation and Regional Wastewater Plant Review Update (22/1753)

Report No. WWC2022/3/120 by Wellington Water Limited

 

The Director, Regulatory Services elaborated on the report.

 

Resolved: (Mayor Barry/Mayor Guppy)                                  Minute No. WWC 22407

 

“That the Committee: 

(1)   notes that Wellington Water will recommence adding fluoride at Te Mārua and Gear Island water treatment plants in September 2022; and

 

(2)   notes in relation to the Regional Wastewater Review that: 

 

(a)   recommendations are substantially complete;

 

(b)   Raveen Jardum has completed a return visit and will provide a recommendation on closing the review by September 2022; and

 

(c)   a final close-out report will be provided at the next Committee meeting.” 

 

 

12.

Stimulus Funding Programme Close-out Report (22/1754)

Report No. WWC2022/3/121 by Wellington Water Limited (WWL)

 

The Chief Executive, WWL elaborated on the report. He advised it was preferable that funding streams in the future be continuous in nature. He said this would enable certainty for future programming.

 

Resolved: (Mayor Barry/Mayor Beijen)                                   Minute No. WWC 22408

 

“That the Committee: 

 

(1)   notes the government allocated $47.3M to the Wellington Water owner councils for expenditure on three waters; 

 

(2)   notes the fiscal stimulus fund has been executed on time and to the full amount;  

 

(3)   notes that Crown Infrastructure Partners require a formal close-out report attached as Appendix 1 to the report; and  

 

(4)   notes the outcomes and outputs achieved by the fund and the views of Wellington Water Limited on the overall success of the fund and lessons learnt.“ 

 

13.

Value for Money Six Monthly Report (22/1768)

Report No. WWC2022/3/122 by Wellington Water Limited

 

Resolved: (Mayor Barry/Mayor Baker)                                    Minute No. WWC 22409

 

“That the Committee: 

 

(1)   receives the Six Monthly Value for Money report attached as Appendix 1 to the report; and

 

(2)   notes the impact of older network infrastructure.

 

14.

Proposed Change to the Meeting Schedule for 2022 (22/1757)

Memorandum dated 11 July 2022 by the Democracy Advisor

 

Resolved: (Mayor Barry/Mayor Beijen)                                   Minute No. WWC 22410

 

“That the Committee:

 

(1)   notes that at its meeting held on 29 November 2021, the Committee identified a tentative date of 25 November 2022 for its first meeting after the local body elections;

 

(2)   agrees to change the meeting date from 25 November 2022 to Friday 16 December 2022 at 10.00am; and

 

(3)   confirms the venue for the meeting will be the Council Chambers, Hutt City Council, 30 Laings Road, Lower Hutt.”

 

15.     Information Item

 

Wellington Water Committee Forward Programme 2022 (22/1290)

Memorandum dated 11 July 2022 by the Democracy Advisor

Members asked officers to ensure a pathway for delivering an asset management plan was included in the Forward Programme.

 

 

Resolved: (Mayor Barry/Mayor Baker)                         Minute No. WWC 22411

 

“That the Committee:

 

(a)   receives and notes the Forward Programme for 2022 attached as Appendix 1 to the memorandum; and

 

(b)   requests the reports on augmented water supply and demand, and the breakdown of the utilisation of opex and capex budgets (by council) be added to the Forward Programme for the next Committee meeting.”

 

16.     EXCLUSION OF THE PUBLIC

Resolved:    (Mayor Barry/Cr van Lier)                                     Minute No. WWC 22412

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

17.     Minutes 27 May 2022

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 Komiti Ngā Wai Hangarua  |Wellington Water Committee held on 27 May 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.

 

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 part of the meeting closed at 12.06pm.  The non-public part of the meeting closed at 12.16pm.

 

 

 

 

 

Mayor C Barry

CHAIR

 

 

 

 

CONFIRMED as a true and correct record

Dated this 30th day of September 2022

 

29 July 2022 Wellington Water Statement - Kia ora, for my Chair’s Statement I’d just like to start by covering off the fluoride matter that we are all aware of.

Fluoride

The report from the fluoride inquiry released earlier this month highlighted a range of shortcomings that contributed to the fluoride issue across the region.

Unsurprisingly, the report got a decent amount of attention and commentary.

Wellington Water has taken responsibility, the Board has accepted the report’s findings and recommendations, and work is underway to implement them.  

Wellington Water has set a timeframe to have fluoride delivered back into the water supply in September. There will be more to share on this at the Committee meeting today.

Three Waters Reform

Three Waters was a key focus of discussions at last week’s Local Government New Zealand (LGNZ) conference.

Reflections from the LGNZ conference.

The acknowledgement of the toll on councils, and funding to support that

— 3 waters to 2, what that would mean for WW councils. 

Weather event

-         Acknowledge efforts of everyone on the ground

Stimulus Money target met

It’s great to see Wellington Water has successfully delivered $47.3 million of investment in the region’s three-waters infrastructure, through the government’s stimulus funding.

Nearly half of the funding went towards activities that Wellington Water has not previously been able to address in any significant way. These include carrying out a detailed investigation of critical assets which if they failed, could have major impacts on people or the environment. This work has reduced that risk which is great to see.

This has helped the organisation fix significant leaks and bursts within target times, with water quality results improving on the whole. There is still more work to do however on less urgent repairs, which are taking longer to carry out.

What’s pleasing is that the organisation has delivered this investment within the government’s deadlines. And this work has demonstrated exactly why more investment is needed in the sector.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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                                                                              1                     30 September 2022

Wellington Water Committee |

Komiti Ngā Wai Hangarua

26 September 2022

 

 

 

File: (22/2338)

 

 

 

 

Report no: WWC2022/4/162

 

Three Waters Reforms - Department of Internal Affairs Roadmap to Day 1

 

 

 

 

Purpose of Report

1.    The purpose of this report is to provide an update on how we are responding to the Government’s three waters reforms programme including an overview of the recent roadshows and ‘Roadmap to Day 1’ summary pack as released by the Department of Internal Affairs (DIA).

 

Recommendations

That the Committee:

(1)   notes the Department of Internal Affairs three waters reform transition programme roadmap to day 1 of the new Water Services Entities (WSE) attached as Appendix 2 to this report; and

 

(2)   notes that councils and WWL are actively engaging with this reforms process, including seeking further details of aspects of the reforms and the implications for Wellington Water Limited (WWL) and councils.

 

 

Background

2.    In support of engagement with councils and the water sector, the DIA have recently undertaken a series of ‘roadshow’ meetings around the country.  This included three meetings for the Entity C councils, including one held at the Dowse Art Museum on 6 September.

 

3.    These meetings have been targeted at chief executives, senior managers and transition staff in councils.  They are intended to form part of an ongoing engagement process with councils. 

4.    The roadshows provided an overview of the key workstreams DIA is leading to give effect to the three waters reforms programme.

5.    A summary slide pack from this roadshow process is attached for information. The pack includes an overview of DIA’s programme.  This focuses on the work being led by the National Transition Unit (NTU) including:

·      A summary of the Day 1 outcomes or what does Day 1 of the Water Services Entities (WSE) look like

·      Key phases and timeline to establish the WSE

·      DIA and National Transition Unit (NTU) structure and key roles

·      A summary of the key workstreams and activities.  These include:

•     Governance and appointments

•     AMOS – asset management, operations and stormwater

•     People and workforce

•     Data and digital

•     Finance and commercial, including transfer of debt

•     Sector engagement

6.    Notable highlights from this DIA update which are expected to be completed by the end of 2022 include:

•     Bill 1 expected to be enacted (timing of subsequent legislation is unclear)

•     Establishment of Chief Executives in place for the WSE

•     Process for appointment of interim WSE boards and constitutions developed

•     Ministerial decisions on pricing and charging

•     First cut of entity level asset management plan information collated from all councils

•     Collation of information on council three waters finance and debt

•     High level WSE organisational design

Discussion

7.    Councils and WWL continue to be actively engaged with this reforms process.  Oversight of this activity is led through the joint WWL and shareholder CE Steering Group (see Appendix 1 attached to the report – dashboard report). This Steering Group meets monthly to review programme, progress and risks.  This joint structure also provides an effective forum for engagement with the DIA and other councils in Entity C. 

8.    The reforms present significant issues and impacts on councils and WWL – both over the next 22 months as well as beyond the target Day 1 date of 1 July 2024. 

9.    While useful, the roadshows and attached pack highlight that there remains considerable uncertainty about the timing, details and impacts of the reforms.  This includes clarity of accountabilities on Day 1, such as billing and timing for transfer of asset ownership.

10.   Establishing processes to working effectively together with DIA is therefore critical to delivering on the intent of the reforms and managing risks and interests of both DIA and councils.

11.   Building on the roadshows we are working with DIA to formalise a more robust engagement model for Entity C.  This would be based on common areas of interest for DIA, councils and WWL.

12.   Through this engagement model we plan to continue to work with DIA to clarify key questions and issues in relation to the reforms and the implications for both WWL and councils.  These include:

·      Guidance from DIA and the Office of the Auditor General on approach to Long Term Plan process

·      Clarity of engagement – including with Mana Whenua and the public

·      Day 1 accountabilities, including such matters as billing and what activity is required post the Day 1 ‘go live’ date for WSE.  This will have a direct bearing on when and how the shareholders will need to transfer accountabilities from WWL to the WSE; costs and funding in LTPs; when and how WWL might be wound up as a company; and communications with our communities and partners

·      Refinement of the DIA led work programme including critical path and key risks

·      Council and Mana Whenua input into the critical deliverables such as the Asset Management Plan (AMP), establishment plan, organisational design, constitution; and funding and pricing plan

·      Council resource requirements including tasks, timing, costs.  Both leading up to and post Day 1

 

13.   Currently our programme of three waters activity focuses on (refer Appendix 1):

•     Engagement with the DIA on reforms and with other councils in Entity C

•     AMP – collation and review of data and information to inform the Entity C AMP

•     Requests for information (RFI): there is a current RFI in relation to council finances and debt related to three waters. Several more RFIs are expected by the end of 2022 including on assets, growth planning, employment terms and data / systems

•     Programme review and resource planning – based on the DIA roadmap, development of a more robust programme plan of council and WWL activity to clarify accountabilities

•     Planning – including consideration of future tasks such as submissions on the second water reforms bill and alignment with LTP processes

Climate Change Impact and Considerations

14.   Not applicable.

Consultation

15.   Council Chief Executives and senior officers in shareholding councils and WWL have been involved in the roadshows and via the Steering Group, consideration of the issues noted in this paper.

Legal Considerations

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

Financial Considerations

17.   Costs and funding for the transition structure continue to be developed based on the current information from DIA.  

18.   DIA have released ‘transition funding’ for councils.  This total $4.118 million for the WWL shareholding councils (with an expectation this covers WWL costs) for the current financial year. 

19.   This funding is likely to be insufficient to cover all council and WWL transition cost and additional funding opportunities will be discussed with DIA.

 

 

 

 

Appendices

No.

Title

Page

1

Wellington Water Limited and Shareholding Councils (WWLASC) Steering Group Programme Dashboard (September)

35

2

Three Waters Roadshow - 1 September 2022

36

     

 

 

 

 

 

 

 

Author: External Author

 

 

 

 

 


Attachment 1

Wellington Water Limited and Shareholding Councils (WWLASC) Steering Group Programme Dashboard (September)

 


Attachment 2

Three Waters Roadshow - 1 September 2022

 























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                                                                              1                     30 September 2022

Wellington Water Committee |

Komiti Ngā Wai Hangarua

06 September 2022

 

 

File: (22/2244)

 

 

 

 

Report no: WWC2022/4/157

 

Company and Governance Update - Wellington Water Limited

 

 

 

Purpose of Report

 

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

 

Recommendation

 

That the Committee receives and notes the report.

 

How to read this report

2.    There are four parts:

 

(i)    Governance Update

 

(ii)   Key Issues

 

(iii)  Water Committee Priorities

 

(iv)  Operational Update

 

Governance Update

 

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

 

(i)      Discussing how to take 22/23 plans of work to individual councils;

 

(ii)     Meeting with the independent auditor; and

 

(iii)    Finalising arrangements for an Annual General Meeting.

 

4.    The Statement of Intent (SOI) (22/23) was approved at your meeting of 29 July 2022. It lays out the work the company will do for owner councils as asset owners and funders. The SOI lays out results on a regional basis, i.e. the services we will provide for all councils, although it contains the non-financial performance measures mandated by the Department of Internal Affairs (DIA) to which individual councils set targets.

 

5.    The SOI is not that useful when discussing 22/23 plans with individual councils because they wish to understand the levels of services that will be provided locally and in some cases, these differ council to council. So Wellington Water has been preparing annual Investment and Delivery Snapshots for each council and a sample is in this agenda.

 

6.    The proposed Annual Investment and Delivery Snapshots aim to:

 

(i)      Set the scene for the 22/23 financial year by presenting Long Term Plan (LTP) decisions made by councils for the 21/24 period;

 

(ii)     Remind councils how Wellington Water’s performance is determined at the Wellington Water Committee level (SOI results);

 

(iii)    Lay out the basis for what Wellington Water can and can’t do during 22/23; and

 

(iv)    Lay out the basis for quarterly performance discussions between the council as asset owner, funder and level of service setter and Wellington Water as service provider.

 

7.    It will be good to discuss the proposed annual Investment and Delivery Snapshot and how to get the best out of it.

 

8.    Audit New Zealand is well advanced with the Independent Audit of the 21/22 financial year. The company has a new auditor. The new auditor is looking very carefully at the non-financial performance DIA measures that have been previously qualified. The Committee will recall the previously qualified “fault response times” and “dry weather overflows” were cleared in the last audit and we foresee no further issues with these. The auditor is reviewing the two remaining qualified issues on the basis that for:

 

(i)      Water Issues: The company has followed the DIA methodology diligently and the result can be verified. The fact that the result must be presented as range because the network is not fully metered is not a basis for qualification; and

(ii)   Customer Complaints: The company argues that it is the council’s system that batches up the customer enquiries so there is insufficient detail to meet the measure, however, the company accepts its own calculations do not have the detail to meet the measure. This measure is likely to remain qualified.

9.    Planning for the Annual General Meeting is well advanced. The meeting will be on 16 December 2022.

 

Induction for 2022/25 Water Committee members

 

10.   We are planning an induction session for the Water Committee post-election that will provide members with an overview of Wellington Water and our model.

 

Key Issues

 

Fluoride Inquiry

 

11.   All plants are fluoridating within the Ministry of Health guidelines. The company is on track to close out the Fluoride Inquiry recommendations by October. The inquiry can be formally closed out at the next Wellington Water Committee meeting.

 

Wellington City Council Asset Management Plan

 

12.   The Wellington City Council (WCC) member of the Wellington Water Committee asked for an update of the WCC asset management plan during the course of the last meeting. This will have been provided by the end of September.

 

South Wairarapa District Council Wastewater Treatment Plan Non-Compliance

 

13.   At the last Committee meeting there was a misunderstanding between the Wellington Water Committee member for the South Wairarapa District Council (SWDC) and the company on information and costs of capital investment in non-compliant wastewater treatment plants (WWTP). The company has provided a prioritised list of capital improvements for the Martinborough and Featherston WWTPs, which includes costs for operational and capital investment needed to make the WWTPs compliant. An abatement notice has been received from the environmental regulator for the Martinborough WWTP.

 

Water Losses 

 

14.   The metropolitan area of Wellington is serviced by high quality drinking water collected and treated from catchments administered by the Greater Wellington Regional Council (GWRC) and supplied to Porirua, Wellington, Lower Hutt, and Upper Hutt Councils. The company reported at the last committee meeting that water losses across the network had taken a share jump about midyear, increasing concern about the provision of reliable safe water over the summer months. You have a full report on this within the agenda.

 

 

 

15.   Taumata Arowai is being fully briefed on these issues. The Committee should note that Taumata Arowai regulates quality and quantity of drinking water. Increasing water losses increase the risk that customers could be subject to reliability issues in receiving safe drinking water. Taumata Arowai will be checking to ensure our Duty of Care to provide safe and reliable water is assured.

 

Very High Criticality Asset Assessments (VHCA)

 

16.   The summary results of the VHCA programme will have been delivered to councils by the end of September. One of the main aims of the programme was to minimise the risk of unplanned failure of the most critical assets – those that provide essential services that support the health and livelihoods of the region’s communities and environments.

 

17.   The programme has identified that many of the VHCAs have been rated as being in good and very good condition. We have been proactive in working with councils whose assets were found to be in very poor condition, giving these assets immediate attention within current capital works or maintenance programmes. Others considered to be in poor condition will be programmed for maintenance, repair or renewals as appropriate within the next 3-5 years.

 

18.   While there is now a much better understanding of the condition of these assets, and the risk of unplanned failure has lessened to a degree, it is not possible to fully eliminate the risk. The VHCA represent approximately 8 percent of the pipes, 30% of the pumpstations, all reservoirs and 5% of the water treatment plant assets we manage. The ‘High Criticality Assets’ (HCA) represent 37% of pipes, all pumpstations and assets in the water treatment plants.

 

19.   The company has a lower level of funding ($5M for the next two years, compared with the $10M optimal spend for the size of asset base) to undertake assessments of the HCA. This means Wellington Water will not be able to fully assess all the HCA assets, limiting knowledge of their condition and therefore increasing the risk.

 

20.   Asset condition is a prudent part of asset management and the results of the VHCA programme have provided a more robust data set that will improve investment planning for future opex and capex programmes. This data will contribute to the development of the Entity C Asset Management Plan (AMP). The Entity C AMP will include provision for ongoing condition assessment as well as increasing the levels of assets to be renewed. Some councils may wish to accelerate and fund additional assessments during 23/24, and Wellington Water will work with them on the feasibility of extending the programme.

 

21.   The success of the VHCA programme has been recognised by the wider water sector and councils outside of the region who are keen to learn from Wellington Water.

 

 

Regional Wastewater Treatment Plant (WWTP) Close out Report

 

22.   At its next meeting the Wellington Water Board will close the WWTP review initiated in late 2021, as the specific activities identified by the review are complete. There is still a lot to do to keep the metropolitan WWTPs within the required environmental performance limits.

 

The Water Committee Priorities

Capex Delivery

23.   The final result for 21/22 was confirmed at $178M, up 36% on 20/21.  This is against the background of Covid delays averaging six weeks, but counter to that is an inflationary environment.  The combined council budget for WCC, GWRC, UHCC and HCC for the 22/23 final year is $196M. Budgets for PCC and SWDC are still to be closed out. We are expecting a total of around $250M. Wellington Water’s Statement of Intent forecasts capex delivery within a range of $174m to $276m which accounts for the number of major projects due for delivery this year.  As we move into the year we will reforecast as the level of certainty of delivery increases. Capex delivery in July and August 2022 amounted to $14.2M and $20.2M, or $34.4M to date, which compares with $16.7M to end of August last year.

 

24.   The company is pleased with the improvements it has made in maturity of its capital delivery approach and system, however there are still improvements that can be made, particularly in bringing new projects forward for delivery in future years. Critical to this however is the opex funding necessary to complete studies and investigations so that activities can be set in the delivery system. If the opex funds trend toward supporting reactive issues, the budgets are reduced and this holds back the supply of future new assets, renewals and upgrades.

 

25.   In September, Wellington Water was recognised by the Association of Consulting and Engineering New Zealand (ACE) for the collaborative delivery approach it has set up to deliver capex across the Wellington region using its consultant and contractor panels. The Committee will recall this was done to establish core three waters capability within the region, grow that capability and lift standards (for example - Health and Safety) and determine value for money by reporting key metrics (for example - design cost/construction cost) and benchmarking against independent estimation and other jurisdictions.

 

Workforce Capability

 

26.   All our service delivery arrangements now have continuity across 1 July 2024 to give all our suppliers confidence in the pipeline of work coming towards them. The National Transition Unit has endorsed the approach which builds confidence in the process for our suppliers.

 

 

27.   Wellington Water is currently recruiting school leavers for the second three waters induction programme; to date 34 people have applied for 16 positions.

 

28.   We continue to hold discussions with Mana Whenua around a joint approach to increase the flow of trained level three and four water technicians.

 

Water Reform

 

29.   The Water Services Entities Bill is currently with the Finance and Expenditure Select Committee which reports back to the house on 11 November 2022.

 

30.   A second Bill is being drafted to give powers to the Water Services Entities.

 

31.   The National Transition Unit (NTU) leadership team have been conducting a series of roadshow events around the country. There were three for Entity C, including one in Lower Hutt on 6 September. At a roadshow an overview of the work programme for the NTU was shared, called “Roadmap to Day One”, including more detail around the activities until December 2022 and where WWL and councils will be asked to contribute. We are considering the implications for WWL of the NTU’s Roadmap and developing an internal work programme that anticipates upcoming requests and how we will work with councils to reduce duplication of effort.

 

32.   We have appointed a Transition Programme Manager and are planning out the wider needs of the organisation to: respond to requests from the NTU; support our owner councils through the policy and design phase of reform; ensure our staff experience a good transition; and prepare the organisation for the impending change through a robust change process. This will involve additional resources devoted to internal communication, administration of staff records, accounting and legal support, change management, and workstream leads to manage the work.

 

Operational Issues

Report on Council Risk Dashboards

 

33.   Council Active Risk Dashboards provide councils with a clear view of the risks that Wellington Water is not resourced to control effectively. They ensure that a risk-based conversation occurs at the Chief Executive level when they are formally tabled at the respective quarterly meetings and are utilised throughout the quarter at the officer level.

 

34.   Following each quarterly meeting the dashboard is placed on the Wellington Water website to assist the public with their understanding of the risks their water infrastructure faces.

 

 

 

 

Regulation Update

 

35.   We have informed Taumata Arowai that we are on track for the development and submission of the Water Safety Plans and Source Water Risk Management Plans. In addition, we have met with Taumata Arowai to discuss the risk to water supply that we face this summer and our intention is to keep them engaged with our plan and seek guidance on any aspect of our Duty of Care under the Water Services Act that we are uncertain about.

 

36.   Priority was given to informing the Ministry of Health (MoH) of the litigation that HCC, WCC and WWL are party to, regarding dosing of fluoride. This advice was followed by contact between the General Counsel of WWL and MoH to ensure that the regulator can keep abreast of a case that will be of interest to them if it proceeds to the court. We have also informed them of the progress of the Gear Island and Te Mārua fluoride plants.

 

 

 

 

 

 

Appendices

There are no appendices for this report.    

 

 

 

 

 

 

 

Author: External Author (Wellington Water Limited)

 

 

 

 

 


                                                                              1                     30 September 2022

Wellington Water Committee |

Komiti Ngā Wai Hangarua

06 September 2022

 

 

 

File: (22/2245)

 

 

 

 

Report no: WWC2022/4/158

 

2022/23 Investment and Delivery Snapshot

 

 

 

 

Purpose of Report

 

1.    To seek feedback from the Wellington Water Committee on the proposed annual Investment and Delivery Snapshot.

 

Recommendations

That the Committee:

(1)   notes and discusses the concept prepared by Wellington Water Limited; and

(2)   endorses the concept of individual council investment and delivery   snapshots.

 

 

Context

 

2.    Wellington Water Limited (WWL) provides advice to councils in preparation for Long Term Plans. This advice is recorded in asset management plans delivered to councils once every three years. WWL is now delivering services in accordance with these asset management plans.

 

3.    At the last meeting Wellington City Council (WCC) asked for a specific update of its asset management plan and this will be delivered by the end of September. The Mayor of WCC also asked for more detailed information on opex and capex budgets by council.

 

4.    The proposed annual Investment and Delivery Snapshot addresses the request for more information on annual opex and capex.

 

 

5.    Each council in the Wellington region owns the three water assets in their council area. WWL provides advice to councils on their assets. Councils then individually decide on what to fund. WWL then works to the budgets councils set and prioritises their work to make the best use of the funding and resources provided.

 

6.    WWL provided advice to councils for the 21/31 Long Term Plan in the form of early signals advice in early 2020 and then investment options advice in mid to late 2020. Councils then made their final three waters investment decisions for the 21/31 period and specifically for the 21/24 period. All this advice is available on the WWL website.

 

7.    The first year of the 21/24 Long Term Plan, financial year 21/22 is complete. WWL is currently delivering services for the 22/23 financial year. The 22/23 financial year is the topic of this paper.

 

Wellington Water Statement of Intent

 

8.    Each year in December the Wellington Water Committee, on behalf of councils, writes a Letter of Expectation which the company takes into account as it prepares its annual Statement of Intent (SOI).

 

9.    For the 22/23 financial year the company provided a draft SOI for the Wellington Water Committee’s consideration and then a final to the Wellington Water Committee’s July meeting. The final has now been completed and is posted on the WWL website.

 

10.   The SOI is a regional document. It describes what the company does at the aggregate of all owners not by individual owners.

 

Council Investment and Delivery 22/23 Snapshots

 

11.   Now all councils have approved funding levels for the 22/23 financial year and the company has completed its SOI, WWL proposes individual investment and delivery snapshots will be prepared for each council. This is so that each council can see what levels of investment it has provided, what results will be delivered and what are the residual risks.

 

12.   The Investment and Delivery Snapshots are made up of the following:

 

•     A record of the investment decisions councils made for 21/24;

 

•     The 22/23 three waters investment levels;

 

•     An outline of what will be achieved against the SOI and individual council non-financial performance measures.

 

13.   A sample of the Investment and Delivery Snapshot is attached as Appendix 1 to the report for discussion.

 

14.   Once WWL has had feedback from the Committee, it will develop an Investment and Delivery snapshot for each council. This will then form the basis for the 22/23 performance discussions.

 

 

 

 

 

 

 

Appendices

No.

Title

Page

1

2022/23 Three Waters Investment and Delivery Snapshot

79

    

 

 

 

 

 

 

 

Author: External Author (Wellington Water Limited)

 

 

 

 

 


Attachment 1

2022/23 Three Waters Investment and Delivery Snapshot

 

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                                                                              1                     30 September 2022

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Wellington Water Committee |

Komiti Ngā Wai Hangarua

06 September 2022

 

 

File: (22/2246)

 

 

 

 

Report no: WWC2022/4/159

 

Actions to Manage Metropolitan Wellington's Water Supply and Usage Risk

 

 

 

 

 

Purpose of Report 

 

1.    To update the Wellington Water Committee on metropolitan Wellington’s water supply and usage risk and next steps as we head into the summer months.

 

Recommendations 

 

That the Committee:

 

(1)   notes that water usage in metropolitan Wellington continues to be at an all-time high due to a recent sharp rise in leakage in both councils’ public network and customers’ private properties as per Wellington Water Limited’s earlier advice to the Committee in July 2022;

 

(2)   notes that councils as the asset owner and funder, and Wellington Water Limited as the water services provider, have regulatory obligations under the Water Services Act 2021 (Taumata Arowai) to ensure that a sufficient quantity of drinking water is provided to consumers;

 

(3)   notes that Wellington Water Limited will be activating our Drought Management Plan for metropolitan Wellington, which includes putting in place residential water restrictions (on behalf of councils) and standing up emergency responses if water usage in local areas exceeds ability to treat and supply water in the summer months;

(4)   notes that immediate interventions to water leakage are needed to reduce the impact on customers and to reduce the severity of water restrictions required this summer;

 

(5)   notes that Wellington Water Limited has reprioritised its allocated operational funding and activities to focus on the highest priority interventions such as identifying and fixing the most significant leaks on the public network. We will advise councils of the impacts of this as it is likely other operational activities on the network will need to be delayed or not completed, and this will have an impact on customers;

 

(6)   endorses all metropolitan councils to play an active role with Wellington Water Limited in the communications and engagement around these risks;

 

(7)   endorses all metropolitan councils to be prepared to use existing bylaws to address unresolved non-compliances associated with significant leaks and water wastage on private properties; and

 

(8)   notes that Wellington Water Limited will provide the Wellington Water Committee and councils with regular updates on the effectiveness of our interventions and provide advice at the December meeting if further support and more aggressive interventions are needed from councils.

 

 

Overview

 

2.    Water use in metropolitan Wellington is at an all-time high due to a combination of population growth and leakage.

 

3.    This has been a rising trend since 2015 and every year Wellington Water Limited (WWL) closely monitors the situation and advises councils (as the asset owner and funder) of the increasing risk of water shortages and what intervention measures are needed. This activity is part of our Drought Management Plan (DMP), a copy of which can be found on our website.

 

4.    WWL’s DMP outlines how we, on behalf of our council owners, will manage the water supply and usage during the summer months using a risk-based approach. This includes changes to how we will manage the network and resources as well as being able to put in place restrictions on water usage to address current levels of risk to the water supply (for example low levels of water storage or a significantly reduced ability to treat and supply water to customers). 

 

5.    At the last Committee meeting in July, WWL advised councils that the metropolitan Wellington area has seen a sharp rise in leakage in both the councils’ public network and on private properties.

 

6.    This means that our councils’ ability to keep up with water usage in the coming months is getting harder to achieve. If left unaddressed, it’s likely that councils will need to increase the level of water restrictions this summer and/or have us stand up emergency responses to ask customers to significantly reduce their usage at short notice.

 

7.    WWL are doing all it can within our allocated funding and resources to actively manage these risks. WWL will be implementing a range of immediate inventions (refer to list below) and will be providing the Committee and councils with regular updates on the effectiveness of this work.

 

8.    However, it’s important to note that if WWL’s interventions do not reduce the risk sufficiently, councils will need to provide further support (for example - further resources and investment) to allow for more aggressive interventions. This may have to be done at short notice.

 

9.    Councils, as the owner and funder of the region’s water assets, and WWL, as the region’s water services provider, both have obligations under the Water Services Act to ensure that a sufficient quantity of drinking water is provided to customers.

 

10.   Under the Act, councils and WWL must also give effect to Te Mana o te Wai through making the wellbeing of the water the highest priority.

 

11.   WWL are already in discussions with Taumata Arowai about these risks and will provide them with regular updates on how we are tracking.

 

Increasing levels of usage puts pressure on the ability to treat and supply water

12.   Our region’s drinking water supply system has a finite capacity.  This means that we can only treat and supply a certain amount of safe drinking water on any given day. Normally this capacity includes a buffer that allows for varying levels in daily water usage, unplanned outages, or planned maintenance work.

 

13.   However, the recent sharp rise in leakage means that the available buffer is becoming increasingly tight. This situation will worsen further as overall water usage increases over the summer months.

 

14.   If immediate interventions are not undertaken to reduce water use, then we may not be able to supply enough water to certain suburbs or areas during times of high usage, which tends to be on the hottest days in summer.

 

15.   In this scenario, councils and WWL may have to pre-emptively ask customers to significantly reduce their water usage in the affected areas, potentially at short notice.

 

Customers should prepare for the risk of significant restrictions this summer

16.   The recent sharp increase in leakage has increased the risk of councils needing to bring forward water restrictions this summer to avoid the levels of water in storage from getting too low.

 

17.   The immediate interventions that we are implementing are intended to help reduce this risk. Again, WWL will be closely monitoring the situation and providing the Committee and councils with regular updates.

       If our interventions are not effective in sufficiently reducing the risk, then councils may need to increase the levels of water restrictions.

 

18.   If tighter restrictions are required, WWL would need the local mayors to publicly lead the communications around this to ensure the public understand the issues and restrictions and respond accordingly. We are all in this together.

 

19.   It is important that we are open with the public about these risks and how our interventions may or may not be reducing the likelihood of further restrictions. Being transparent about this will allow us to properly manage public expectations and increase understanding on what people need to do to help out.

 

20.   WWL’s communications over the next few months will be focused on ensuring that we are clear on this as well as letting the public know what is required of them if an increase of restrictions is required.

 

21.   More information on the water restrictions levels can be found on our website. This includes information on what is required under each restriction level from 1 - 4.

 

22.   Note that Level 4 water restrictions mean asking the public to restrict their indoor water use. As outlined, in our DMP this would be considered an emergency situation, which would again require the local mayors to publicly lead communications.

 

Interventions Wellington Water has underway

 

23.   Established a new dedicated team to deal with these risks and ensure that it is given the highest priority.

 

24.   Commissioned an external review of our approach to managing leaks on the public network. The review set out to see if any improvements can be made to our approach and a number of key areas have been identified for us to take a closer look at, for example - pressure management in the network. This has been conducted by Richard Taylor of Thomas Consultants, a nationally recognised expert in water loss management.

 

25.   Reprioritised operational activities to redirect allocated funding to the highest priority operational interventions. This work includes:

(i)    Increasing the activity on identifying and repairing the high priority / significant leaks on both the councils’ public network and private properties is currently the most effective short-term mitigation available to us and our councils. Reducing water wastage is also in line with the principles of Te Mana o te Wai.

 

 

 

 

(ii)   Optimising how WWL operate the councils’ water treatment plants and networks including:

•     Reviewing the configuration of the water treatment plants to identify whether there are any further opportunities to optimise the outputs from the plants or improvements for efficiency.

•     Reviewing and where possible reducing the pressure in the network, which will help to reduce usage and some water loss.  

 

(iii)  Increasing WWL communications, education and engagement activities including:

•       Proactively communicate about risks and the need to reduce water usage. We have reprioritised our usual summer demand marketing campaign budget to focus on a communications and education campaign on encouraging people to look for and fix leaks on their private properties. It should be noted however that this campaign can only increase awareness of the issue and other interventions by councils (for example - compliance activities under the council bylaws to address non-compliances) are also needed to effectively drive behaviour change.

•       Working with the largest commercial customers to reduce usage. This includes working with councils who use water for parks, pools, and gardens to investigate ways to reduce their water use, particularly during periods where supply is low.

 

26.   Looking at how we can target some of the capital investment to address risks.  This includes targeting the renewal programme at areas with elevated leakage, and various trials of new equipment and technology.

 

27.   Preparing to respond to water shortages and emergency response. WWL are working through our DMP and associated activities to ensure we have the systems, processes and resources in place to response when water shortages occur.

 

28.   Operational reprioritisation will mean that other work in the network will need to be delayed or not done at all. WWL will advise each council of the impacts of this prioritisation for wider service levels and provide other options for councils to consider.

 

29.   The below graph compares the level of water usage from June 2020-September 2021 (red line) with the same period this year (blue line). WWL will use these figures as a baseline for measuring the effectiveness of the interventions we’ve implemented and will report back on these numbers at the next Committee meeting in December.

 

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Support needed from councils in the short term

 

30.   Be prepared to undertake compliance activities under the existing bylaws to address unresolved non-compliances associated with significant leaks and water wastage on private properties. Councils have a range of actions they can take to reduce the leaks on private properties.  This includes requesting customers to undertake repairs, repair ongoing leaks and charge the customer for the cost of the repair, and restricting or prohibiting the use of water for any specific reason.

 

31.   Councils need to be aligned with WWL and give the same messages. Councils need to support our communication efforts to extend the reach of the messages. Communications will focus on leaks on private properties but also include communications about water restrictions and immediate calls for people to conserve water in areas facing the risk of acute water shortages. Councils need to ensure their channels are also pushing / sharing the same messages to achieve a higher level of public engagement. As previously mentioned, if Level 3 or Level 4 restrictions are required then local mayors will also need to lead communications.

 

32.   Plan for water restrictions on council operations. It is likely the councils’ operations and water use will be scrutinised by the public during periods of water restrictions. Councils should start to consider what the impacts water restrictions will have on council services and plan ahead for this coming summer.

 

Next Steps

 

33.   Subsequent to this Committee meeting, WWL will engage with all metropolitan councils on the above actions and talk through the support that is needed from our council owners.

 

34.   WWL will provide regular updates to councils and the Committee on the progress of this work and report back to the Committee at the December 2022 meeting.

 

 

 

 

Appendices

There are no appendices for this report.   

 

 

 

 

 

 

 

Author: External Author (Wellington Water Limited)

 

 

 

 

 


MEMORANDUM                                             1                     30 September 2022

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Description automatically generated with medium confidenceOur Reference           22/2242

TO:                      Chair and Members

Wellington Water Committee | Komiti Ngā Wai Hangarua

FROM:                Annie Doornebosch

DATE:                 06 September 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

89

    

 

 

 

 

 

 

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

 

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