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Komiti Ngā Wai Hangarua| Wellington Water Committee

 

 

13 December 2022

 

Order Paper for the meeting to be held in the

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

on:

 

Friday 16 December 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 A Baker

Porirua City Council

Mayor C Barry

Hutt City Council

Mayor M Connelly

South Wairarapa District Council

Cr R Connelly

Greater Wellington Regional Council

Mayor W Guppy

Upper Hutt City Council

Vacant

Te Rūnanga O Toa Rangatira

L Rauhina-August

Taranaki Whānui ki Te Upoko o Te Ika

Mayor T Whanau

Wellington City Council

Cr T Brown

Wellington City Council (Alternate)

Cr C Kirk-Burnnand

Greater Wellington Regional Council (Alternate)

Cr R Leggett

Porirua City Council (Alternate)

Deputy Mayor M Sadler-Futter

South Wairarapa District Council (Alternate)

Vacant

Te Rūnanga O Toa Rangatira (Alternate)

Deputy Mayor H Swales

Upper Hutt City Council (Alternate)

Kirsty Tamanui

Taranaki Whānui ki Te Upoko o Te Ika (Alternate)

Cr G Tupou

Hutt City Council (Alternate)

Andrea Rutene

Chair, Māori Standing Committee, SWDC (Observer)

Narida Hooper

Member, Māori Standing Committee, SWDC (Observer)

 

 

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


                                                                                       0                                                              16 December 2022

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 16 December 2022 commencing at 10.00am.

 

ORDER PAPER

 

Public Business

 

1.       Opening formalities - Karakia Timatanga (22/2362)

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.       Procedure to Elect the Chair and Deputy Chair (22/2366)

Report No. WWC2022/5/229 by the Democracy Advisor                                      9

6.       Application to Become Mana Whenua Partner (22/2641)

Report No. WWC2022/5/230 by the Chief Executive, Porirua City Council        12

7.       Three Waters Reform – KEY UPDATES ON LEGISLATION AND ACTIVITY FOR 2023 (22/2383)

A verbal update by the Programme Director, Water Reform – Wellington Water Councils will be provided at the meeting.

 

8.       Wellington Water Limited Annual General Meeting and Audit Update (22/2389)

A verbal update by the Principal Advisor, Wellington Water Limited will be provided at the meeting.

9.       Water Reform Transition Report - Wellington Water Limited (22/2384)

Report No. WWC2022/5/173 by Wellington Water Limited                                16

10.     Company and Governance Update - Wellington Water Limited (22/2385)

Report No. WWC2022/5/174 by Wellington Water Limited                                19

11.     Preparing for 2024-34 Investment Advice (22/2547)

Report No. WWC2022/5/231 by Wellington Water Limited                              122

12.     Quarterly Regulatory Assurance Report - Wellington Water Limited (22/2387)

Report No. WWC2022/5/176 by Wellington Water Limited                              127

13.     Actions to Manage the Region's Water Supply (22/2679)

Report No. WWC2022/5/233 by Wellington Water Limited                              133

14.     Letter of Expectation (22/2474)

Report No. WWC2022/5/232 by the Chief Executive, Porirua City Council      143

15.     Meeting Schedule 2023 (22/2367)

Memorandum dated 23 November 2022 by the Democracy Advisor                 148

16.     Information Item - Wellington Water Committee Forward Programme 2023 (22/2365)

Memorandum dated 25 November 2022 by the Democracy Advisor                 150

 

 

 

 

 

       

17.     EXCLUSION OF THE PUBLIC

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

18.     Wellington Water Limited Director's Fees (22/2637)

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.

 

 

 

 

 

 

Wellington Water Limited Director's Fees.

The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information (s7(2)(b)(ii)).

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


                                                                                       0                                                  16 December 2022

Komiti Ngā Wai Hangarua Wellington Water Committee

24 November 2022

 

 

File: (22/2366)

 

 

 

Report no: WWC2022/5/229

 

Procedure to Elect the Chair and Deputy Chair

 

Purpose of Report

1.    To advise the Wellington Water Committee (the Committee) of the procedure to elect the Chair and Deputy Chair.

Recommendations

That the Committee:

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

(2)   chooses either:-

(a)   voting system A (election by the majority of members);

 

OR

 

(b)   voting system B (election by the greatest number of votes) for the election of the Committee Chair and Deputy Chair;

 

(3)   agrees that, in the event of a tie under voting system A, the candidate to be excluded from the next round of voting shall be resolved by lot as described in section 14 of this report; and

(4)   agrees that, in the event of a tie under voting system B, the candidate to be elected shall be resolved by lot as described in section 14 of this report.

 

Background

2.    Under Schedule 7 of the Local Government Act 2002 (the Act), the Committee may appoint its own Chair and Deputy Chair.  The Committee’s Terms of Reference provide for this to occur once all Committee members have been appointed.  As all Committee members have been appointed, it is appropriate for the Committee to appoint its Chair and Deputy Chair at its meeting to be held on 16 December 2022.

 

3.    The Committee must adopt the voting system for these elections, in case there is more than one nomination for the position of Chair or Deputy Chair. Standing Orders outline two options for the Committee’s consideration:

a)    Election by the majority of members present and voting; or

 

b)    Election by receiving a greater number of votes than any other candidate.

Characteristics of election by majority (voting system A)

4.    The person who is elected receives the votes of a majority of the members of the Committee.

5.    There is a first round of voting for all candidates.

6.    If no candidate is elected in that round there is a second round of voting from which the candidate with the fewest votes in the first round is excluded.

7.    If no candidate is successful in the second round there is a third, and so on.  Each time the candidate with the fewest votes in the previous round is excluded.

8.    If, in any round, two or more candidates tie for the lowest number of votes, the person excluded from the next round is resolved by lot.

9.    Rounds of voting will only be required where there are more than two candidates.

Characteristics of election by majority (voting system B)

10.  A person is elected if they receive more votes than any other candidate.

11.  There is only one round of voting.

 

12.  If two or more candidates tie for the most votes, the tie is resolved by lot.

Comment

13.  The Committee can choose either of the two voting systems described above to elect the Chair and Deputy Chair.  The Committee is entitled to adopt different systems for the election of the Chair and Deputy Chair.  However, for reasons of ease and practicality, it is suggested that the Committee adopt the same procedure for the election of both the Chair and Deputy Chair.

Determining by ‘lot’ where there is a tie

 

14.  Both voting systems require a resolution by ‘lot’ if two candidates receive an equal number of votes and no one else is elected.  The most common procedure is for the names of the candidates with the same number of votes to be placed in a container and the name of the person drawn out by an independent person is deemed the winner ie elected or not excluded from the next round.  It is recommended that this process be used in the event that there is a tie between candidates.

 

Newly elected Chair to take the chair before Deputy Chair is elected

 

15.  Once the voting procedure has been decided the presiding officer will call for nominations for the office of Committee Chair.  Once elected, the newly elected Chair shall take the chair for the rest of the meeting.  Election of the Deputy Chair will proceed after the Chair takes the chair. 

Appendices

There are no appendices for this report.    

 

 

 

 

 

Author: Annie Doornebosch

Democracy Advisor

 

 

 

 

 

 

Reviewed By: Kathryn Stannard

Head of Democratic Services

 

 

 

Approved By: Jarred Griffiths

Director Strategy and Engagement

 


                                                                                       0                                                  16 December 2022

Komiti Ngā Wai Hangarua |

Wellington Water Committee

06 December 2022

 

 

File: (22/2641)

 

 

 

 

Report no: WWC2022/5/230

 

Application to Become Mana Whenua Partner

 

Purpose of Report

1.    To consider applications to become Mana Whenua Partners.

Recommendations

That the Committee:

(1)   notes and receives the report;

(2)   agrees to recommend to shareholder councils that Ngāti Kahungungu ki Wairarapa Tamaki Nui a Rua Treaty Settlement Trust be appointed as a Mana Whenua Partner Entity (MPWE) as specified in the Shareholders and Partners Agreement relating to Wellington Water Limited;

(3)   agrees that Andrea Rutene be Ngāti Kahungungu ki Wairarapa Tamaki Nui a Rua Treaty Settlement Trust’s nominated representative; and

(4)   confirms the role of Narida Hooper as an observer on the Wellington Water Committee.

 

Summary

 

2.    Wellington Water Limited shareholders amended the Wellington Water governance documents in 2019 to allow for iwi representation.

3.    The Shareholders Agreement allows a Māori authority to approach the shareholder councils through the Wellington Water Committee and seek to be recognised as a Mana Whenua Partner Entity to provide representation on the Wellington Water Committee.

4.    Two Māori authorities are currently represented on the Wellington Water Committee; Ngāti Toa Rangatira and Taranaki Whānui ki te Upoko o Te Ika.

5.    Up until now the Wairarapa iwi have not been able to be formally represented on the Wellington Water Committee. Instead, the Chair of the Māori Committee of the South Wairarapa District Council has had observer status on the committee. 

6.    The progress of the Ngāti Kahungungu ki Wairarapa Tamaki nui a rua Trust’s treaty settlement now enables them to request formal membership of the Committee.

Background

 

7.    The Wellington Water Committee has been operating a governance structure providing for genuine Māori representation since 2019.  Wellington Water Limited’s governance documents reflect an inclusive approach.

8.    The Shareholders Agreement allows a Māori authority to seek to be recognised as a Mana Whenua Partner Entity. Upon joint approval by the shareholders, the Mana Whenua Partner Entity can nominate a person to be a Wellington Water Committee member (and the shareholders must unanimously appoint). A Mana Whenua Partner Entity must be a Māori authority within the geographical area in which the Company operates.

9.    The relevant Māori authority will become a Mana Whenua Partner Entity upon acceding to the Shareholders Agreement by way of a deed of accession.

10.  The Wellington Water Committee has received an application from Ngāti Kahungungu ki Wairarapa Tamaki Nui a Rua Treaty Settlement Trust to become a Mana Whenua Partner Entity and the Wellington Water Committee is asked to consider this application.

Remuneration

 

11.  The Wellington Water Committee Terms of Reference provide that the shareholders will be responsible for remunerating the Committee members nominated by the Mana Whenua Partner Entities, and their alternates for any costs associated with being a member of the Committee.

Discussion

 

12.  The proposal is to appoint an additional Mana Whenua Partner Entity representative to the Wellington Water Committee.

13.  The two Māori authorities, Te Rūnanga o Toa Rangatira and Taranaki Whānui ki Te Upoko o Te Ika are Post Settlement Governance Entities. Post Settlement Governance Entities are entities created for the management of Treaty Settlement interests and assets and are recognised as the formal partnership mechanism between the Crown and Mana Whenua.

14.  The Trust operates within the Wellington region in which Wellington Water operates. The entity has Crown recognition for the area in which they operate in and it makes sense that they are representing the lower Wellington region’s water interests from a Mana Whenua perspective.

15.  Rangitāne also cover the same area as Ngāti Kahungungu ki Wairarapa Tamaki Nui a Rua Treaty Settlement Trust but we have not yet been able to advance their membership of the Committee.  We will continue to work on this. In the meantime it is recommended that Narida Hooper who is a member of the South Wairarapa District Council’s Māori Committee stays on as an observer to ensure continuity.

Next steps

 

16.  If agreed, the proposal to appoint an additional Mana Whenua Partner Entity and the nominated representative will be forwarded to each shareholder council for their consideration.

 

 

 

 

Appendices

No.

Title

Page

1

Application from Ngāti Kahungungu ki Wairarapa Tamaki Nui a Rua Treaty Settlement Trust

15

    

 

 

 

 

 

Author: Wendy Walker

Chief Executive, Porirua City Council

 

 

 

 


Attachment 1

Application from Ngāti Kahungungu ki Wairarapa Tamaki Nui a Rua Treaty Settlement Trust

 

 

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Komiti Ngā Wai Hangarua|

Wellington Water Committee

19 November 2022

 

 

File: (22/2384)

 

 

 

 

Report no: WWC2022/5/173

 

Water Reform Transition Report - Wellington Water Limited

 

 

 

 

Purpose of Report 

 

1.    To update the Committee on the progress of the internal Transition Programme in support of Three Waters (3Waters) reform. 

 

 

Recommendation

That the Committee receives the report.

 

Background

 

2.    Up until the transfer of delivery for 3Waters to the new Water Services Entity (WSE) on 1 July 2024, it will be business as usual for Wellington Water Limited (WWL). The primary focus will be on supporting our staff throughout the transition period to ensure that their move to the new WSE is a good experience.    

 

3.    The vision of the Transition Programme is to integrate WWL’s collective capability into the new WSE to enable the entity to operate well and flourish.  

4.    The Programme will look to assure our Council owners that the transition to the new WSE is well managed, while ensuring delivery of our core services are not impacted as a result.  Throughout this process we will support our staff through the transition process. 

 

Programme Management  

 

5.    The management of the Programme is in a much stronger position since the last report provided on 30 September 2022 with agreement over internal governance and supporting programme structure. Additional resources have been appointed to lead the individual workstreams which we have aligned to mirror the National Transition Unit (NTU) change programme. 

 

6.    We have secured $1.89M in funding for programme delivery activities, council-specific improvements to asset register data and to assist with the delivery of CAPEX and OPEX investment templates to the NTU.  

 

7.    Not all of the activities performed by us are covered by the funding that is available with an estimated $384k of costs incurred during July to November. Of this we are having to absorbing $54k of unfunded activities from our WWL management fee. 

 

8.    We continue to have regular communication with Council transition managers and also conduct internal information sharing meetings between key staff who participate in NTU working groups. This ensures that we reduce any duplication of effort by our staff and remain joined up to better support transition activities on behalf of our Council owners. 

 

9.    An area of focus for the company is the ongoing challenge of ensuring our staff understand the current status of reform as there is not political alignment over its merits. 

 

Key risks 

 

10.  Significant effort will be required to respond to discovery requests and engage with NTU through secondments, reference groups, working groups, and the local transition team, etc. Any staff released to the transition arrangement will impact on our ability to deliver core services to our councils.  

 

11.    To mitigate this risk, we will be judicious in our efforts, focusing on more impactful ways to make a difference once the Entity C Local Establishment Entity is underway sometime in early 2023. 

 

Activities delivered 

 

12.  Since the last update to the Committee, our staff have supported and/or participated in a number of core transition activities.  We have provided two responses to the NTU in support of development of organisational design and staff terms and conditions. 

  

13.  We have also submitted to the NTU unconstrained CAPEX and OPEX advice on behalf of Councils and participated in the operational stocktake of 3Waters functions led by the NTU. 

 

 

Appendices

There are no appendices for this report.   

 

 

 

 

 

 

 

Author: External Author (Wellington Water Limited)

 

 

 

 

 


                                                                                       0                                                  16 December 2022

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Komiti Ngā Wai Hangarua |

Wellington Water Committee

19 November 2022

 

 

File: (22/2385)

 

 

 

Report no: WWC2022/5/174

 

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. 

 

Recommendations

That the Committee: 

 

(1)   notes that the Wellington Water Limited Annual Report was made public by 30 November 2022; and

 

(2)   agrees to provide the Water Committee Summary Report attached as Appendix 5 to the report (as modified, if at all, at the meeting), to individual councils. 

 

How to read this report 

 

2.    There are four parts, as follows: 

 

i.     Governance Update 

 

ii.    Water Committee Priorities 

 

iii.   Key Issues 

 

iv.   Operational Matters 

 

 Governance Update 

 

3.    The key Governance activities of the Board include: 

 

i.   Receiving the Audit Opinion and completing the Annual Report; 

 

ii.  Finalising the Board Committee Structure; 

 

iii. Closing out the Fluoride Inquiry; and  

 

iv. Agreeing the final format of the quarterly regulatory assurance report. 

 

Annual Report 

 

4.    The Annual Report was published on the Wellington Water Limited (WWL) website by the statutory date of 30 November 2022. 

 

5.    Clint Ramoo is the Audit Lead for Audit New Zealand, replacing Karen Young who has undertaken the audit over the previous three years.

 

6.    Three years ago, the auditor qualified the audit opinion of the Annual Report on four non-financial performance measures. Over the last two years we have improved and closed out the issues associated with the measurement of “dry weather” overflows and the assurance of response time measures. Over the last year we have closed out the issues associated with the calculation of the water losses measure. 

 

7.    One item remains qualified for the 2021/22 financial year. This measure relates to the way council contact centres, and the after-hours Palmerston North Centre, batch up complaints about water services. Audit New Zealand maintains that every individual complaint should receive its own individual ID, whereas councils batch them up and present them to WWL as one service request. At this stage the company is unaware of any action councils propose to take to close this issue out. 

 

8.    The final Annual Report is attached as Appendix 1 to the report for the information of the Committee and will be presented by the Chair of WWL at the Annual General Meeting directly following the Committee meeting. 

 

Board Committee Structure 

 

9.    The Wellington Water Board has established three committees. These are the traditional Audit and Risk Committee as well as a Major Projects Committee and a People and Culture Committee. 

 

 

 

 

 

 

 

Fluoride Inquiry Closed 

 

10.  At the 16 November 2022 Board meeting the Fluoride Inquiry was closed. The inquiry made five recommendations which were all accepted in full by the Board.  A programme of improvements was planned to match the recommendations made and to resume fluoridation. This programme of work is now complete therefore the Inquiry can be closed.  

 

11.  The fluoride failure will remain an event in the history of WWL and be part of the company’s legacy. Like all crises it has provided good lessons which the company has fully embraced. You will see in the Quarter 1 Performance report that fluoridation occurred at all plants over this period, however full compliance with the Ministry of Health fluoridation range will not occur until the end of Quarter 2.  

 

Regulatory Assurance Reporting 

 

12.  In the agenda, you will see our proposed Regulatory Assurance Report.  It is a draft for comment.  Once agreed, full assurance reporting will begin from Quarter 2 of the 2022/23 financial year.  

 

Quarterly Performance Update 

 

13.  Appendix 2 attached to the report shows the SOI results for Quarter 1.  These show that we are on track for most measures but will not meet the performance requirements for environmental compliance. 

 

14.  Appendix 3 attached to the report summarises our current performance for the region’s drinking water and wastewater plants. These are circulated to councils every month. 

 

The Water Committee Priorities 

 

Capex Delivery  

 

15.  At the end of October 2022 spend on the capital delivery programme was $76M, this was an increase of $35M on the same time last year. At a programme level, we are forecasting to spend $240M for the full year, which is within the expected range of $174M-$276M. 

 

16.  Although up on last year, the spend is below budget.  The year-to-date variance of $15M is primarily driven by a couple of projects that have had slower than expected starts.  

 

17.  The increase in activity achieved this financial year is driven primarily by three factors:

 

i.        having a small number of Major Projects in construction;

 

ii.       the catchment renewals programmes; and

 

iii.      the work we have done to award contracts earlier, providing certainty to our supply chain of a secure pipeline of work.  This financial year, approximately 45% (by value) of construction contracts were awarded by 1 July 2022. This financial year the target is to have 80% (by value) of contracts for 2023/24 construction awarded by the end of June 2023.  

 

18.  We are experiencing cost increases at rates higher than inflation.  We have sought advice from our cost assurance providers and what we are seeing is consistent across the construction industry.  

 

19.  We continue to make improvements in the way we deliver capital projects.  In August the ‘project toolbox’ initiative went live, documenting and standardising our expectations for project delivery and the requirements at each governance gateway. There is still work to be done in this space – this year our focus will be on proactive assurance activities across the capital delivery programme.    

 

20.  Our teams are working to develop and grow the pipeline of work for the capital delivery programme, however this relies on opex funding for need identification, strategic and growth studies, and prioritisation and investigation activities.  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. 

 

21.  We are making good progress on the construction of a number of high-profile major projects. The Omāroro Reservoir was the first major project to be committed to construction and it is nearing completion. While there is still significant work to do, the actual reservoir will be commissioned prior to Christmas 2022. This 35 megalitre Reservoir will ensure there is a 48 hour buffer to provide drinking water to the Wellington CBD and surrounding suburbs. 

 

Workforce Capability  

 

22.  We completed our second Infrastructure Skills Centre Programme in November.  This programme is targeted at school leavers.  It comprises six weeks of learning to provide foundation skills to introduce them to the water sector.   Thirteen young men and women graduated, nine of whom have joined WWL and the remainder joining members of our Contractor Panel.  Continuing to invest in this programme partly addresses a chronic shortage of workers in the water sector and will provide real benefits in the medium to long term.  We have started planning to run another programme in March next year. 

 

Water Reform 

 

23.  This is well covered in the Regional Water Reform Report and the Company’s Transition Report. 

 

 

 

Key Issues 

 

Water Losses 

 

24.  The Committee held a workshop on the 30 November 2022 to continue to discuss the sharp and unexpected rise in water losses experienced in the middle of 2022. A further update is provided in this agenda. 

 

The Effects of Inflation 

 

25.  Council revenues come from charges to customers and ratepayers who are experiencing a high inflationary environment. Increasing costs of labour, materials, debt, etc are putting revenues under pressure if services are to be maintained at current levels. Increasing costs also mean construction costs are increasing over what have been previously estimated. 

 

26.  For Three Water services inflation has the following main impact: 

 

i.     Construction costs are increasing over what was forecast within council annual plans. As individual costs increase, it is necessary to re-time capital programmes so that the programme costs remain within budget. This means less outputs for the same cost; and 

 

ii.    The operational environment is pushed further into reactive mode. It is difficult to deliver services to a budget when the network is costing more and more to operate due to ageing assets. When inflation is added to this situation the whole system moves more into a reactive state and levels of service will need to reduce when operating to tight budgets. 

 

Labour Shortages 

 

27.  Throughout New Zealand labour is in short supply for frontline services such as nurses and bus drivers and the water sector is no different. Overall, we are about 20 FTE short on the front line after we have backfilled with sub-contractors. 

 

28.  To address this problem, we have been graduating young people through our skills centre programme (as described above) and placing them in our business, and in the business of our suppliers. Our contractors are also growing organically to address the future increasing pipeline of the three waters capital programme. However, those are medium term developments, meaning acute problems need to be addressed by immigration or seeking help from outside the region. Both these latter points are being progressed by the company and we will keep the Committee updated on progress. 

 

29.  Our Capex consultant panel are still reporting a lack of skilled engineers in the market.  There is plenty of interest from overseas candidates and they are starting to make their way through the immigration process.  This reflects our own experience in the WWL capital team. The contractor Capex panel has advised that they are seeing a slowing in turnover of staff, but are still finding it hard to recruit good skilled labour. 

 

Health and Safety 

 

30.  When the external environment puts pressure on companies to increase outputs for the same costs, health and safety risks increase. The company is being very vigilant to ensure safety and wellbeing is put first. 

 

Investment and Delivery Snapshots 

 

31.  The WWL Statement of Intent (SOI) describes the services WWL provides to all six owner councils collectively. That is, the financial and non-financial performance of the organisation at an aggregated regional level. 

 

32.  Members of the Committee, when considering their own specific council, have advised they find it difficult to link the investment they provided through the 2021/31 Long Term Plan to the current level of performance across their three water assets. 

 

33.  To address this concern, WWL conceived of an “Investment and Delivery Snapshot” which would link the investment made by councils to the forecast performance in terms of both the SOI measures and the Department of Internal Affairs measures. 

 

34.  At its September 2022 meeting the Committee were presented with a draft of the Snapshots which the Committee liked. The company has since finalised the formats and they are now out with council officers for finalisation. An example of the snapshot is included in Appendix 4 attached to the report.  

 

35.  Once completed they can be presented to councils and then used as the basis for discussions on performance at quarterly meetings. Our aim is to have them all complete by the time we report 2022/23 Quarter 2 Performance in Quarter 3. 

 

36.  The Investment and Delivery snapshots will also be a useful forerunner into the 2024/34 Three Waters Planning exercise which is the subject of a separate report in your agenda. 

 

Mana whenua investment priorities – giving effect to Te Mana o te Wai 

 

37.  As part of our process of investment planning for 2024/34 (as outlined in a separate agenda item) we have been working with Taranaki Whānui ki Te Upoko o Te Ika and Ngati Toa Rangatira to understand their investment priorities so these can be appropriately considered in our investment advice. As part of this process, we have been developing a shared understanding of how we can give effect to the principles of Te Mana o te Wai. This includes understanding the critical issues for the catchments that we are operating in. We anticipate this work will be complete towards the end of Quarter 3, and are discussing how we will partner with Mana Whenua to share this work with councils and the Committee. 

 

 

 

 

Operational Issues 

 

Understanding our greenhouse gas emissions 

 

38.  The delivery of water services generates greenhouse gas emissions through both operational activities (for example: pumping, wastewater treatment processes) and through the capital construction process (for example: concrete, steel). We have recently completed our first ever calculation of the expected embedded emissions from our capital programme, and revised the calculation (or “inventory”) of the emissions from water services operations.  

 

39.  The expected capital carbon emissions were determined using data for the capital programme set out in councils’ 2021/24 LTPs and through a model that is also being used by Watercare and Auckland City Council. The analysis forecasts emissions of 83,500t CO2e over this three-year period, predominantly through materials like concrete, steel, pipes and excavation activities. With many of these projects already in construction and detailed design there is little opportunity for material reductions to be achieved, but the analysis provides a basis for emissions and emissions reduction to be incorporated into our future design and construction processes.  

 

40.  The operational emissions have been calculated from data for the 2020/21 year and provide an opportunity for us to understand changes since we completed our original inventory for the 2017/18 year. Total emissions of around 17,000 tonnes have increased by 56% from the emissions calculated in the 2017/18 inventory.  Some of this increase reflects changes to the standards for calculating emissions from wastewater treatment, but the increase in emissions also reflects the growing demand for water services. In the absence of targeted investment, these emissions can be expected to continue to grow. We are developing an investment roadmap for emissions reduction that we will incorporate into our 2024/34 investment advice.  

 

Wastewater Treatment Plants 

 

41.  The wastewater treatment plants under the Regional Wastewater Contract continue to have performance issues, from a combination of asset failures and process control issues.

   

42.  Detailed work with Wellington City Council for Moa Point has recommended a significant change to the way that plant is operated, which a team from WWL and Veolia are currently working on.  Changes are being hampered by asset failures from the ageing centrifuges and overheating of the aeration blowers. There is also one clarifier still out of service while a replacement main bearing is being manufactured.   

 

43.  The Seaview plant has recently had a component of the disinfection equipment fail, and the replacement part may take in excess of 12 weeks to deliver.  Critical spares are being reviewed and the overall asset management plan for the renewal of ageing parts is being revised with more aggressive renewal forecast for the next LTP.  

 

44.  Resourcing constraints from Veolia staff and local contractors are also causing challenges in timely delivery of the large workload.  Porirua and Western plants are currently operating well, with a major upgrade at Porirua proceeding on programme. 

 

Connecting the Water Committee to Individual Councils

 

45.  The Committee has a major role in providing leadership to the six councils who own WWL. At the Committee meeting you are shaping material that all councils will receive via WWL’s ongoing advice on operations. 

 

46.  To assist with individual councils understanding of the material the Committee is working on, it would be good to provide a report back to individual councils after each meeting. 

 

47.  Appendix 5 attached to the report contains the report for this meeting. 

 

Climate Change Impact and Considerations 

 

48.  There are no direct climate change impacts or considerations from the matters addressed in this report.  

 

 

 

Appendices

No.

Title

Page

1

Wellington Water Limited Annual Report 2021-22

27

2

Quarter 2 2022/23 Wellington Water Statement of Intent Results

101

3

Waste Water Treatment Plant and Water Treatment Dashboard Reporting - November 2022

106

4

Three Waters Investment and Delivery Snapshot sample

118

5

Water Committee Summary Report for Individual Councils

119

    

 

 

 

 

 

 

 

Author: External Author (Wellington Water Limited)

 

 

 

 

 


Attachment 1

Wellington Water Limited Annual Report 2021-22

 


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Attachment 2

Quarter 2 2022/23 Wellington Water Statement of Intent Results

 

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Attachment 3

Waste Water Treatment Plant and Water Treatment Dashboard Reporting - November 2022

 

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Attachment 4

Three Waters Investment and Delivery Snapshot sample

 

 


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Water Committee Summary Report for Individual Councils

 

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                                                                                       0                                                  16 December 2022

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Komiti Ngā Wai Hangarua|

Wellington Water Committee

23 November 2022

 

 

File: (22/2547)

 

 

 

Report no: WWC2022/5/231

 

Preparing for 2024-34 Investment Advice

 

Purpose of Report

1.    To outline the proposed approach to developing 2024-34 three waters  investment advice. 

 

Recommendations

That the Committee: 

 

(1)   notes that while draft legislation proposes that the development of 2024-34 three waters investment plans will be the responsibility of the Department of Internal Affairs (DIA), the responsibility for this planning continues to remain with councils until that legislation is enacted and councils will also want to ensure that the DIA’s plans reflect their communities’ investment needs; 

 

(2)   notes the DIA has sought, and will continue to seek investment information from councils to support their planning activities, and that this is the same information that would inform any investment planning undertaken by councils; 

 

(3)   notes that Wellington Water Limited is working together with Taranaki Whānui ki Te Upoko o Te Ika  and Ngāti Toa Rangatira to identify their investment priorities for 2024-34; 

 

(4)   supports councils’ undertaking indicative three waters investment planning for 2024-34 to understand the investment needs that need to be reflected in the DIA’s plans, and undertaking this planning in the context of the strategic priorities set out in Wellington Water Limited’s Statement of Intent; and 

 

(5)   agrees to coordinating council inputs to 2024-34 investment plans to ensure regional three waters services, capability and capacity are all lifted in the first three years of operation of the new water services entity. 

Responsibility for 2024-34 investment plans is subject to proposed legislation but remains with councils until that legislation is enacted 

 

2.    It is currently anticipated that 2024-34 three waters investment plans will be delivered by the new Water Services Entities. The version of the proposed Water Services Entities Bill that was recently reported back to the Select Committee places responsibility for the development of the investment plans themselves with the Department of Internal Affairs (DIA) (i.e. through its National Transition Unit, or NTU)1 

 

3.    As at the date of drafting this paper, this legislation has yet to be enacted and is subject to amendment through the remainder of the legislative process. The ultimate future of the legislation is also uncertain, depending on the outcome of the 2023 general election. 

 

4.    In the absence of this legislation, the development of these investment plans remains the responsibility of councils, as part of their Long Term Plan (LTP) process. 

 

The DIA is using the same investment information that would be used in LTPs 

 

5.    The NTU has requested, and councils have provided unconstrained investment information to support their investment and financial planning processes for the new entities. Further requests are anticipated as they progress towards final (i.e. constrained and prioritised) investment and asset management plans. The proposed timeline for the development of these plans runs ahead of the timing that would be required if three waters investment was to be included in councils’ LTP process (see Figure 1 below). 

 

Figure 1: Comparison of proposed legislated investment planning process to council LTP process. The legislated process is compressed into a much shorter timeframe than that for an LTP and would be completed around six months earlier. 

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6.    The investment information provided to the NTU has come from a central “investment register” held by Wellington Water Limited (WWL). This is the same information that would inform investment planning for councils’ 2024-34 LTPs, if required. 

 

2024-34 planning will need to reflect the latest understanding of investment needs 

 

7.    There are currently no statements of intent or other strategic documents in place to set the investment direction for the new entities. The level of funding for the entities, and allocation of funding between councils has also yet to be determined2. The NTU has indicated the intention is for investment to align with that described in 2021-31 LTPs and for all councils to be “no worse off” than envisaged in those LTPs. 

 

8.    This intention to follow 2021-31 LTPs creates a risk that councils’ priority investment needs will not be appropriately reflected in the NTU’s investment plans. The region now has an accepted strategic investment framework and direction3 that it is now better prepared to implement, and operational risks are now better understood than they were when those LTPs were established. Since those LTPs were adopted: 

 

i.     the investment requirements for critical assets have become more clearly understood as a result of the very high criticality assets inspection programme; 

 

ii.    investment needs to support forecast growth and address existing level of service deficits have been further defined, and councils have made or are now making district planning decisions confirming where they will support this growth to occur; 

 

iii.   new regulatory and compliance requirements have been set out by Taumata Arowai; 

 

iv.   new (and higher) environmental performance requirements have been identified through Greater Wellington Regional Council’s Whaitua process4 including some water quality improvements that are required within this 10-year investment period; 

 

v.    the metropolitan region’s water supply and demand position has continued to tighten, and the investments required to achieve near- and longer-term sustainability have been more clearly identified;  

 

vi.   investment needs to address environmental non-compliance have been identified (for example, in response to abatement notices for wastewater treatment plants); and 

 

vii.  a roadmap has been developed for reducing greenhouse gas emissions and climate change adaptation risks have been identified for some key assets. 

 

 

 

The investment priorities for mana whenua are also being identified 

 

9.    The development of 2021-31 three waters investment advice included relatively little engagement with mana whenua, but this engagement has been increasing in recent years and it is also expected to be a requirement for the new entities.  

 

10.  WWL has been engaging directly with Taranaki Whānui ki Te Upoko o Te Ika and Ngāti Toa Rangatira on investment planning and prioritisation and their expectations and aspirations are becoming more clearly understood. More information is being sought from the NTU about how they will recognise the interests of mana whenua in their investment planning process. 

 

Councils should undertake some investment planning of their own, to ensure the Entity investment plan reflects their needs 

 

11.  Working through an investment planning process with each council, and with a collective view endorsed and overseen by the Committee will ensure investment needs, levels, and priorities are well understood. This will ensure the councils are ready to respond to any investment plans put forward by the NTU and that the required investment is understood and achieved. 

 

12.  For the 2021-31 LTP, WWL undertook a three-stage process for presenting three waters investment advice to councils. The investment advice became more accurate and refined as the process progressed, enabling councils to have a complete picture of investment needs and understand the impact of investment choices. The three stages were: 

 

i.     Early investment signals – an unconstrained view of the investment needed to make progress against all the regional strategic priorities; 

 

ii.    Investment options – two or three of scenarios for constrained investment that reflect indicative council funding levels and priority areas; and 

 

iii.   Final investment advice – investment to meet confirmed funding availability and priorities. This will typically be used to inform public consultation and then be further refined post-consultation for use in final council budgets. 

 

13.  Given the significant increase in the understanding of investment need and investment choices that has occurred over the past couple of years (as outlined in paragraph 8) it is proposed that planning similar to steps (i) and (ii) be completed prior to the NTU consulting on its proposed investment plan. This would ensure councils understand the investment required and the consequences of different investment scenarios, and so are appropriately prepared to respond to the investment proposed by the NTU. 

 

 

 

 

 

A regional perspective is required 

 

14.  Creating a region-wide understanding and alignment on investment needs will also support better outcomes for the region and its communities. The strategic investment priorities have been identified at a regional level, and many will require a commitment to investment across councils for progress to be achieved. The most evident of these are investments to ensure long-term, sustainable water supply and demand for the metropolitan region. 

 

15.  Delivery of the three waters services also relies on regional capability and capacity. Working with a regional model has enabled these to be progressively developed, including through bringing additional suppliers and specialist skills and technology into the region. Continuing to look at investment need at a regional level will enable opportunities for further expansion of capability and capacity to be identified and pursued. This will have ongoing benefits for water services in the region, regardless of the delivery model. 

 

Climate Change Impact and Considerations 

 

16.  Investment to reduce carbon emissions and to improve the resilience of the services to the impacts of climate change is one of the regional strategic priorities. 

 

Consultation 

 

17.  WWL has been working with council officers on the process for developing investment advice through the WWL and Shareholding councils (WWLASC) Steering Group and Working Group.  

 

Legal Considerations 

 

18.  The process for developing three waters investment advice is potentially subject to new legislation, including relevant amendments to the Local Government Act 2002, that are set out in the paper. 

 

Appendices

There are no appendices for this report.   

 

 

 

 

 

Author: External Author (Wellington Water Limited)

 

 

 

 

 


                                                                                       0                                                  16 December 2022

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Komiti Ngā Wai Hangarua|

Wellington Water Committee

19 November 2022

 

 

File: (22/2387)

 

 

 

Report no: WWC2022/5/176

 

Quarterly Regulatory Assurance Report - Wellington Water Limited

 

 

 

 

 

Purpose of Report 

 

1.         To provide the Committee assurance on the level of compliance with the main regulators that act on Wellington Water Limited (WWL).  

 

Recommendations 

 

That the Committee: 

 

(1)   notes the draft Assurance Dashboard attached as Appendix 1 to the report;

 

(2)   notes the Assurance Dashboard will be reported from the end of Quarter 2; and

 

(3)   notes that Wellington Water Limited’s Board has closed the Fluoride Inquiry. 

 

 

Regulatory Assurance Context 

 

2.    Four main regulators currently act on the daily operations of Wellington Water Limited (WWL) and are the focus of the company goal ‘to be trusted by our regulators’. To earn this trust, WWL is focusing on the core of the business and placing the needs of the water and our customers first. Our regulators provide the assurance that we are doing what we are meant to be doing, and in meeting their requirements we in turn earn the trust of our stakeholders. 

 

3.    Increasingly the regulators are valuing transparency, dialogue and risk-based decision making that informs actions and investment to optimise outcomes for the communities and environment of the region. WWL is familiar with the traditional regulator model where regulators monitor compliance with obligations to legal and regulatory requirements; and establish technical, safety and quality standards and monitoring their compliance. This model remains a fundamental part of the regulatory relationship but alone is no longer enough to satisfy the regulator.  

 

4.    Increasingly application of ngā mātāpono o te tiriti (principles of the Treaty of Waitangi) drives regulatory requirements, and in regard to water specifically the concept of Te Mana o te Wai which requires the first priority must be to ensure the life-supporting capacity of fresh water. 

 

5.    WWL is adapting to satisfy these increasing requirements while orientating to the changes that reform will bring to the regulatory landscape. This will be in the form of new regulators who will seek to ensure that infrastructure services are delivered efficiently through measures such as price-quality regulation. 

 

The Wellington Water Regulation Dashboard 

 

6.    The draft Regulation Dashboard attached as Appendix 1 to the report aims to provide the Board and Committee an overview of the relationship with the respective regulators, and an indication of the level of compliance with further insight into the least compliant areas. It forecasts the regulator's interest in the next quarter and provides the Committee with a recommended governance level questions to pursue inquiry with management to fulfil its obligations. 

 

7.    Using Taumata Arowai as an example, the dashboard gives assurance to the Board that WWL is in a highly trusted state and is well placed to meet its immediate compliance requirements (provision of the Water Safety Plans in November 2022). It then indicates that the significant water loss within the drinking water network coming into summer is of interest to the regulator; and that the regulator is expecting water supply owners and operators to understand their duties under the Water Services Act 2021 under such circumstances. The dashboard then recommends that the Board potentially utilises Te Mana o te Wai as the basis of a line of inquiry to seek assurance that WWL is addressing water loss effectively and show it is supporting the regulators requirement to implement Te Mana o te Wai. 

 

8.    By focusing the report on each regulator, the dashboard aims to lift the compliance reporting out of council specific issues (which the Master Performance Lists achieve) and instead provide the Committee with a recommended line of assurance inquiry to pursue with the Board and Management. 

 

 

 

 

 

Inclusion of Work Safe 

 

9.    While not a regulator specific to the water industry, given the level of importance Health and Safety has within any large utility company, it is proposed to include Work Safe in future dashboards.  

 

Focus for Q2 & Q3 – bring clarity to state of enforcement actions 

 

10.  In the next two quarters WWL will be focused on improving regulatory assurance by: 

 

i.     submitting the Water Safety Plans to Taumata Arowai, which will mark a major compliance milestone under the new regulator; and

 

ii.    embedding the regulatory framework oversight of the RMA consents that WWL holds from GWRC. 

 

11.  WWL will provide a common view of the state of compliance of all the major consents. This will ensure all consent condition breaches are acted upon and resolved. Resolution will involve correspondence directly with: 

 

i.   individual groups within WWL to ensure that WWL can demonstratively show all reasonable actions to optimise positive environmental outcomes and compliance within our resources are taken and these are being monitored and reported in result sheets;

 

ii.  the councils, to give them a clear picture of their compliance risk in tolerating the consent breach and any forecasted action by the regulator; and 

 

iii. GWRC to clarify what WWL has been able to achieve within the resources allocated to it by the owners of the assets, and current or forecastable consent breaches which WWL has communicated to councils and cannot be resolved. 

 

12.  It is not expected that such correspondence will lead to WWL avoiding being a party to ongoing consent breaches or potential prosecution, but it provides a clear record that WWL has always acted to generate positive outcomes for the environment and therefore retain the trust of the regulator. 

 

13.  By next quarter this assurance report will provide the Committee assurance that regulatory enforcements are in a known state and this state is shared by our owners and the regulator. 

 

Fluoride Inquiry Closed 

 

14.  At the WWL Board Meeting held on 29 June 2022, the Board accepted: 

 

i.   the findings and the five recommendations of the Martin Jenkins independent inquiry commissioned by the Board titled ‘Inquiry into the Cessation of Water Fluoridation by Wellington Water’ (Fluoride Inquiry) dated 21 June 2022; 

 

ii.  the implementation program provided by management to achieve the recommendations. 

 

15.  Since June 2022, the WWL Board and the Committee has been updated regularly on the implementation progress, and the attached implementation programme provides assurance that all recommendations have been implemented.  

 

16.  At the WWL Board Meeting held on 16 November 2022, the Board was satisfied that all matters have been addressed, agreed to wind up the Fluoride Subcommittee on the basis that the Board was satisfied all matters have been addressed and closed the Fluoride Inquiry. 

 

 

 

 

 

Appendices

No.

Title

Page

1

Wellington Water Regulation Assurance Dashboard Q1 2022/23

131

2

Fluoride Implementation Programme

132

    

 

 

 

 

 

 

 

Author: External Author (Wellington Water Limited)

 

 

 

 

 


Attachment 1

Wellington Water Regulation Assurance Dashboard Q1 2022/23

 

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Fluoride Implementation Programme

 

 


                                                                                       0                                                  16 December 2022

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Komiti Ngā Wai Hangarua|

Wellington Water Committee

12 December 2022

 

 

 

File: (22/2679)

 

 

 

 

Report no: WWC2022/5/233

 

Actions to Manage the Region's Water Supply

 

Purpose of Report

1.         To formally receive the background material presented at the Wellington Water Committee workshop on 30 November 2022.

 

Recommendation

That the Committee receives the background material on the management of water leaks presented at the workshop held on 30 November 2022.

 

Background

2.    Every year Wellington Water Limited (WWL) closely monitors metropolitan Wellington’s water supply and usage risk 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.  WWL runs a communications campaign each summer to inform the public of the situation and intervention measures and to manage demand.

3.    At the 29 July 2022 Committee meeting, we advised councils that the metropolitan Wellington area has seen a sharp rise in leakage in both the councils’ public network and on private properties.

The issues

 

4.    Water use has continued to rise over the past seven years and is now at an all-time high due to population growth and water lost via leaks. This year we have seen a sharp and unexpected rise in water lost through leaks since mid-2022.

 

5.    Current (2021/22 financial year) estimates show on average 40% of the total water supplied is lost through leaks across the public networks and on private property. Due to the drinking water networks not being fully metered, percentages quoted for water losses are an approximation and should be considered within confidence limits of ±10%.

6.    We acknowledge that we need to do all we can to reduce water loss before asking the public to restrict their water use beyond the current standard summer restrictions once we get to the summer months and the rivers drop to low levels and the storage lakes supplement supply.

7.    WWL has completed the setup of leak detection and leak repair teams. The leak repair teams are as big as the market capacity allows and are fully funded by councils. The company is investing in ways to increase leak-fixing capacity, but this will be a slow and gradual process.

8.    This dedicated response to finding and fixing leaks on the public network is already paying dividends as the sharp increase in total water losses observed in the middle of the year of a 7.2% increase has now reduced to a 5.4% increase.

9.    However, due to capacity and funding issues not all leaks can be fixed so we have developed and implemented a prioritisation system to make the best use of the resources we have and focus on fixing the biggest leaks that have the most impact on water supply. Many of these are underground and not easy to spot. The most urgent leaks are those that cause a loss of water supply to customers, and they jump to the head of the queue.  Leaks losing more than 10 litres or more per minute are next, followed by leaks that are detected in areas that already have high leak numbers or where supply may already be running low.  This means small leaks such as a leaking toby will be deferred for attention later when resources allow. Communications now become crucial to manage the public’s expectations and we have already begun ramping up our communications on this.

10.  As private leaks on private property are also estimated to be an issue, we have increased our efforts to find private leaks and work with the owners to get those fixed. To increase the focus on private leaks we propose a campaign aimed at the public to find and fix private leaks. This will be supported by communication about the situation, what council and WWL are doing, and what the public can do before we reach the very dry summer months when residents could be called on to conserve water.

Workshop Outcomes

 

11.  At the 30 November workshop, the discussion was that we will break our approach into two parts.  Part 1 is to focus on leaks and Part 2 is to focus on consumer conservation beyond standard summer restrictions, but only on the latter when the weather is hot and dry and the situation is getting tough.

 

 

12.  There was good alignment from councils and mayors wanting to own this issue and to front the work when we are ready to be more public about it.

13.  It was agreed to take a regional approach including more use of te ao Māori perspectives and te reo Māori, while preserving individual councils’ abilities to nuance the way it is done locally.

Next Steps

 

14.  We will work with councils to refine the communications approach. There was a workshop on Wednesday 7 December 2022 to finalise the marketing campaign brief.

15.  Collateral is being developed for education and transparency about the situation.  This includes a weekly dashboard of water use; the prioritisation matrix; visibility of the queue of leaks waiting to be fixed; and the process for homeowners of how to fix their leaks.

16.  We will provide regular updates to councils and the Committee on the progress of this work and report back to the Committee at the meeting to be held on 17 March 2023.

Climate Change Impact and Considerations

 

17.  The decision to continue to focus efforts on reducing leakage will reduce greenhouse gas emissions. WWL is currently treating and pumping water around the region that is not getting to our customers. If WWL reduces the wastage of this precious taonga we also reduce related network emissions.

18.  The decision will be affected by a changing climate, as summer months are likely to become drier, with less water available to take from the rivers.

Appendices

No.

Title

Page

1

Water Committee Workshop background material on leaks

136

    

 

 

 

 

Author: External Author (Wellington Water Limited)

 

 

 

 


Attachment 1

Water Committee Workshop background material on leaks

 

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                                                                                       0                                                  16 December 2022

Komiti Ngā Wai Hangarua|

Wellington Water Committee

09 December 2022

 

 

 

File: (22/2474)

 

 

 

 

Report no: WWC2022/5/232

 

Letter of Expectation

 

Purpose of Report

1.    For the Wellington Water Committee (the Committee) to approve the annual shareholder and partners Letter of Expectation to Wellington Water Limited (the company).

Recommendations

That the Committee:

(1)   notes and receives the report;

 

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

 

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

 

Background

2.    Committee members have the delegated authority from each of the six shareholding Councils to agree to the annual letter of expectation.  This is set out in the Committee’s terms of reference.

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

 

4.    The priorities included in the Letter of Expectation reflect those flowing from the councils’ overall objectives as expressed in their Long Term Plans in relation to three waters services.  The letter also reflects the priorities communicated at a workshop held after the last Committee and the short to medium-term priorities communicated by the officers of each shareholding Council and some iwi partners after the circulation of an early draft.

Communication

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

Legal Considerations

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

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

Significance of the decision

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

9.    Officers have considered the significance of the matter and consider it, on its own, to have a low significance. Officers do not consider that a formal record outlining consideration of the decision-making process is required in this instance.

 

 

Appendices

No.

Title

Page

1

Wellington Water Limited Letter of Expectation 2023-24

145

    

 

 

 

Author: Wendy Walker

Chief Executive, Porirua City Council

 

 

 

 


Attachment 1

Wellington Water Limited Letter of Expectation 2023-24

 

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MEMORANDUM                                                  0                                                  16 December 2022

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Description automatically generated with medium confidenceOur Reference          22/2367

TO:                      Chair and Members

Komiti Ngā Wai Hangarua |Wellington Water Committee

FROM:                Annie Doornebosch

DATE:                23 November 2022

SUBJECT:           Meeting Schedule 2023

 

 

Recommendation

That the Committee agrees to the meeting schedule for the Wellington Water Committee for 2023 as follows:-

 

·     Friday, 17 March 2023 commencing at 10.00am followed by a workshop at Hutt City Council Chambers; Hutt City Council, 30 Laings Road, Lower Hutt;

·     Friday, 9 June 2023 commencing at 10.00am followed by a workshop at Hutt City Council Chambers, Hutt City Council, 30 Laings Road, Lower Hutt;

·     Monday, 24 July 2023 commencing at 10.00am followed by a workshop at Hutt City Council Chambers, Hutt City Council, 30 Laings Road, Lower Hutt;

·     Friday 6 October 2023 commencing at 10.00am followed by a workshop at Hutt City Council Chambers, Hutt City Council, 30 Laings Road, Lower Hutt; and

·     Friday, 8 December 2023 commencing at 10.00am followed by a workshop at Hutt City Council Chambers, Hutt City Council, 30 Laings Road, Lower Hutt.

 

Purpose of Memorandum

1.    For the Wellington Water Committee (the Committee) to adopt its meeting schedule for 2023.

Proposed meeting arrangements for 2023

2.    Officers have contacted members to arrange appropriate dates for the Committee to meet in 2023.

 

3.    It is envisaged that the Committee will meet on five occasions in 2023, with additional meetings and workshops arranged as required.

 

 

 

 

Communication

 

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

 

 

Appendices

There are no appendices for this Memorandum.    

 

 

 

 

 

 

Author: Annie Doornebosch

Democracy Advisor

 

 

 

 

 

 

Reviewed By: Kate Glanville

Senior Democracy Advisor

 

 

 

Approved By: Kathryn Stannard

Head of Democratic Services

 

 

 

 

 

 


MEMORANDUM                                                  0                                                  16 December 2022

Our Reference          22/2365

TO:                      Chair and Members

Komiti Ngā Wai Hangarua |Wellington Water Committee

FROM:                Annie Doornebosch

DATE:                25 November 2022

SUBJECT:           Wellington Water Committee Forward Programme 2023

 

 

Recommendation

That the Committee receives and notes the Forward Programme for 2023 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 and workshops planned for the Wellington Water Committee for 2023.

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 2023 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 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.  Any changes to the Forward Programme made by officers and Wellington Water Limited staff will be made in consultation with the Chair.

 

Appendices

No.

Title

Page

1

Wellington Water Committee Forward Programme 2023

152

    

 

 

 

 

 

 

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 2023

 

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