WELLINGTON WATER COMMITTEE - 3 June 2020
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WELLINGTON WATER COMMITTEE
28 May 2020
Order Paper for the meeting to be held in the
ZOOM,
on:
Wednesday 3 June 2020 commencing at 10.00am
Membership
Cr J Brash Greater Wellington Regional Council
Cr D Bassett (Chair) Hutt City Council
Mayor A Baker Porirua City Council
Mayor A Beijen South Wairarapa District Council
Mayor W Guppy (Deputy Chair) Upper Hutt City Council
Cr S Rush Wellington City Council
Mr T Parai Te Runanga o Toa Rangatira
Ms K Skelton Taranaki Whānui ki Te Upoko o Te Ika
Cr J van Lier Greater Wellington Regional Council (Alternate)
Deputy Mayor T Lewis Hutt City Council (Alternate)
Cr R Leggett Porirua City Council (Alternate)
Deputy Mayor G Emms South Wairarapa District Council (Alternate)
Deputy Mayor H Swales Upper Hutt City Council (Alternate)
Cr I Pannett Wellington City Council (Alternate)
Ms N Solomon Te Runanga o Toa Rangatira (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, 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.
WELLINGTON WATER COMMITTEE
Meeting to be held in the ZOOM on
Wednesday 3 June 2020 commencing at 10.00am.
ORDER PAPER
PUBLIC BUSINESS
1. APOLOGIES
2. 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.
3. 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.
4. MINUTES
Wellington Water Committee, 5 March 2020 11
5. COVID-19 AND THE IMPACT ON WELLINGTON WATER'S
PERFORMANCE REPORTING FOR 2019-2020 (20/428)
Report No. WWC2020/4/2 19
6. COMPANY UPDATE REPORT (20/434)
Report No. WWC2020/4/3 43
7. UPDATE ON 2020/21 ANNUAL PLANS AND 2021/31 LTPS (20/435)
Report No. WWC2020/4/4 49
8. A VALUE FOR MONEY FRAMEWORK FOR WELLINGTON WATER
LTD (20/444)
Report No. WWC2020/4/5 59
9. WELLINGTON WATER COMMITTEE'S GOVERNANCE REVIEW
(20/459)
Verbal Update from the Chair
8 03 June 2020
10. UPDATE ON THE BUSINESS CASE FOR WATER METERING (20/458)
Verbal Update
11. GOVERNMENT'S THREE WATERS REVIEW (20/462)
Verbal Update from the Chair and Deputy Chair
12. NATIONAL COUNCIL OF LGNZ POLICY POSITION ON THREE
WATERS SERVICE DELIVERY (20/469)
Memorandum dated 27 May 2020 by the Head of Democratic Services 81
13. GENERAL BUSINESS (20/460)
14. EXCLUSION OF THE PUBLIC
CHAIR'S RECOMMENDATION:
“That the public be excluded from the following parts of the proceedings of this
meeting, namely:
15. BOARD MEMBERSHIP (20/474)
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 Reason for passing Ground under
matter to be this resolution in section 48(1) for the
considered. relation to each passing of this
matter. resolution.
Board Membership – The withholding of That the public
Verbal Update the information is conduct of the
necessary to protect relevant part of the
the privacy of natural proceedings of the
persons. (s7(2)(a)). meeting would be
The withholding of likely to result in the
the information is disclosure of
necessary to maintain information for
the effective conduct which good reason
of public affairs for withholding exist.
through the free and
frank expression of
opinions by or
between or two
members or officers
or employees.
9 03 June 2020
(s7(2)(f)(i)).
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.”
Kathryn Stannard
HEAD OF DEMOCRATIC SERVICES
11 5 March 2020
WELLINGTON WATER COMMITTEE
Minutes of a meeting held in the Greater Wellington Regional Council Chambers,
15 Walter Street, Te Aro, Wellington on
Thursday 5 March 2020 commencing at 2.00pm
PRESENT: Cr J Brash (GWRC)
Cr D Bassett (HCC) (Chair)
Mayor A Baker (PCC)
Mayor A Beijen (SWDC)
Mayor W Guppy (UHCC) (Deputy Chair) (until 2.20pm)
Cr S Rush (WCC)
Ms K Skelton (Taranaki Whānui ki Te Upoko o Te Ika)
APOLOGIES: There were no apologies.
IN ATTENDANCE: Cr J van Lier (Alternate GWRC)
Deputy Mayor T Lewis (Alternate HCC)
Cr R Leggett (Alternate PCC)
Deputy Mayor G Emms (Alternate SWDC)
Cr I Pannett (Alternate WCC)
Ms N Solomon (Alternate Te Runanga o Toa Rangatira)
Ms K Tamanui (Alternate Taranaki Whānui ki Te Upoko o Te
Ika)
Ms B McKerron, Chief Executive, Wellington City Council
Ms N Wood, Greater Wellington Regional Council
Mr S Mahorey, Greater Wellington Regional Council
Ms S Gain, Greater Wellington Regional Council
Ms W Walker, Chief Executive, Porirua City Council
Ms J Long, Porirua City Council
Mr D Baxter, City Engineer, Wellington City Council
Mr M Ford, Chief Financial Officer, Wellington City Council
Mr D Wright, Chair of Wellington Water Limited
Mr C Crompton, Chief Executive, Wellington Water Limited
Ms S Cuthbert, Principal Advisor, Wellington Water Limited
Mr B Hodgins, Strategic Advisor, Hutt City Council
Ms D Hunter, Acting Committee Advisor, Hutt City Council
PUBLIC BUSINESS12 5 March 2020
1. APOLOGIES
An apology was received from Deputy Chair Mayor Guppy for early departure.
2. PUBLIC COMMENT
There was no public comment.
3. CONFLICT OF INTEREST DECLARATIONS
There were no conflict of interest declarations.
4. MINUTES
RESOLVED: (Cr Bassett/Mayor Baker) Minute No. WWC 20201
“That the minutes of the meeting of the Wellington Water Committee held on
Monday, 16 December 2019, be confirmed as a true and correct record.”13 5 March 2020
5. WELLINGTON WATER GOVERNANCE REVIEW (20/185)
Report No. WWC2020/2/63 by the Chief Executive, Porirua City Council.
The Chair updated members on Wellington City Council establishing a Mayoral
Taskforce to address the ongoing water issues as well as the Government announcement
that there were likely to be changes in terms of the future management of the Three
Waters.
Cr Rush updated members regarding the taskforce scope. He advised that there had
been an initial meeting of the Mayoral Taskforce and the scope of the review was still to
be determined. He commented that it was the intention that any recommendations from
the Mayoral Taskforce relating to the other shareholders would be addressed through the
Wellington Water Committee.
In response to questions from members, the Chief Executive of Wellington City Council
confirmed that the likely scope of the review was to inquire into specific problems
relating to water issues in Wellington. She also advised that it was to identify initiatives
to address these issues by recommending an action plan to Wellington City Council. She
stated that an initial report was expected by the beginning of June to inform their Annual
Plan deliberations.
The Chief Executive, Porirua City Council elaborated on the report. She acknowledged
that Government had launched a major review to tackle New Zealand’s Three Water
issues relating to wastewater, stormwater and drinking water.
In response to questions from members, the Chief Executive, Porirua City Council
reiterated that the issue still outstanding was the need to position Wellington Water Ltd
for the future, particularly in light of the Government’s Water Reform Package.
The Chair foreshadowed a revised recommendation (iv) as follows:
(iv) “That the Committee instructs the case manager for Wellington Water to prepare a
terms of reference for a governance review that positions Wellington Water for the
future and includes scope, key issues, service delivery options and methodology for
undertaking the review noting that approval for this will be sought by circulating the
draft to members of this committee.”
RESOLVED: (Cr Bassett/Mayor Guppy) Minute No. WWC 20202
“That the Committee:
(i) receives the information;
(ii) notes the outcomes of the workshop held on 10 February 2020 to address Governance issues
raised in the previous triennium;
(iii) notes the mechanisms available to each shareholding Council and mana whenua members to
hold the Wellington Water company to account (letter of expectation, statement of intent,
and key performance indicators in the context of an active working relationship); and14 5 March 2020
(iv) instructs the case manager for Wellington Water to prepare a terms of reference for a
governance review that positions Wellington Water for the future and includes scope, key
issues, service delivery options and methodology for undertaking the review noting that
approval for this will be sought by circulating the draft to members of this committee.”
Mayor Guppy left the meeting at 2.20pm.
6. DRAFT HALF YEAR REPORT 2019/20 (20/214)
Memorandum dated 2 March 2020 by Wellington Water Ltd
Mr Wright, Board Chair Wellington Water Ltd (WWL) elaborated on the memorandum.
He noted that WWL had made good progress towards its goals and overall performance
with some noteworthy results and acknowledged some results that could be better. He
highlighted South Wairarapa District Council becoming a six shareholder Council as well
as welcoming iwi partners around the table.
In response to questions from members, the Chief Executive, WWL advised that WWL
had KPIs in its Statement of Intent, another KPI with Department of Internal Affairs and
in shareholding Councils Long Term Plans. He noted that an external audit would be
undertaken on fianncial and non fianncial issues. He confirmed that they were
collaborating with Greater Wellington Regional Council in regard to flood management
studies.
RESOLVED: (Cr Bassett/Cr Rush) Minute No. WWC 20203
“That the Committee receives the Half Year Report 2019/20 for the six months ended
31 December 2019 attached as Appendix 1 to the memorandum.”15 5 March 2020
7. WELLINGTON WATER LTD'S DRAFT STATEMENT OF INTENT 2020-23 (20/210)
Report No. WWC2020/2/70 by Wellington Water Ltd
Mr Wright, Board Chair of Wellington Water Ltd (WWL) elaborated on the
memorandum. He commented that over the past four months, WWL had been
reviewing its performance measures by developing a comprehensive framework dirven
by business expertise and experience.
In response to questions from members, the Chief Executive, WWL confirmed that
changes had been made to their performance framework as part of their commitment to
becoming a high performing organisation and the journey of continual improvement.
RESOLVED: (Cr Bassett/Cr Brash) Minute No. WWC 20204
“That the Committee receives, considers and provides feedback on Wellington Water Ltd’s draft
Statement of Intent by Friday, 17 April 2020.”
8. COMPANY UPDATE REPORT (20/208)
Report No. WWC2020/2/71 Wellington Water Ltd
Mr Wright, Board Chair of Wellington Water Ltd (WWL) elaborated on the
memorandum.
In response to questions from members, the Chief Executive, WWL advised that they
were currently in the middle of Stage One. He also advised that they had engaged Water
Industry Commission for Scotland to peer review their work and provide independent
advice back to individual Councils.
RESOLVED: (Cr Bassett/Mayor Beijen) Minute No. WWC 20205
“That the Committee receives and notes the information.”16 5 March 2020
9. WELLINGTON WATER COMMITTEE DRAFT UPDATE FOR COUNCILS (20/209)
Report No. WWC2020/2/72 by Wellington Water Ltd
Mr Wright, Board Chair of Wellington Water Ltd elaborated on the report.
RESOLVED: (Cr Bassett/Cr Brash) Minute No. WWC 20206
“That the Committee:
(i) approves the draft Wellington Water Committee Update report; and
(ii) authorises the Chair to finalise the Wellington Water Committee Update report and
forwarding it to each Council.”
10. LONG TERM PLANS UPDATE (20/215)
Report No. WWC2020/2/73 by Wellington Water Ltd
Mr Wright, Board Chair of Wellington Water Ltd (WWL) elaborated on the report.
The Chief Executive, WWL commented that this would be the first time that WWL would
be presenting proposed Long Term Plan programmes that would indicate rates impacts
to each council shareholder. He stated that this would enable the region’s ratepayers to
better understand the impact of the investment required to achieve the desired long term
outcomes.
RESOLVED: (Cr Bassett/Cr Rush) Minute No. WWC 20207
“That the Committee:
(i) receives the report; and
(ii) notes that Wellington Water Ltd will work across our client councils to help them to reach
agreement on regional Long Term Plan investment priorities such as those for bulk water and
jointly-owned wastewater systems.”17 5 March 2020
11. CLIMATE CHANGE (20/217)
Report No. WWC2020/2/74 by Wellington Water Ltd
RESOLVED: (Cr Brash/Mayor Beijen) Minute No. WWC 20208
“That the Committee:
(i) notes the report;
(ii) provides feedback on the proposed response programme and its alignment to shareholding
councils’ climate change strategies and action plans; and
(ii) notes proposed emission reduction targets and the associated investment needs will be
included in all of council Long Term Plan proposals an consolidated for presentation to the
Committee at its June meeting.”
12. SUSTAINABLE WATER SUPPLY POLICY (20/218)
Report No. WWC2020/2/29 by Wellington Water Ltd
Cr Brash advised that the Greater Regional Council (GWRC) was devlopng a business
case for the five client world. She asked for support from members for this to continue.
She stated that a business case would be reported back to Wellington Water Ltd.
Ms Solomon commented that whilst building the business case, GWRC needed to
consider how water metering would impact on the Maori community, in particular
significant iwi maraes, where the water useage was different.
Ms Skelton reiterated that GWRC needed to take into account the long running
affordability for people around the most vulunerable and poorest areas of our
communities.
RESOLVED: (Cr Bassett/Mayor Beijen) Minute No. WWC 20209
“That the Committee:
(i) notes the report;
(ii) provides feedback on, and endorses in principle, the target and policy; and
(iii) discusses the implications of the current shortfall in the drought resilience level of service
and the absence of data and information to support residential water use efficiency.”18 5 March 2020
13. DRAFT SUBMISSION ON TAUMATA AROWAI BILL (20/211)
Report No. WWC2020/2/28 by Wellington Water Ltd
RESOLVED: (Cr Bassett/Cr Brash) Minute No. WWC 20210
“That the Committee:
(i) receives and notes the draft submission on the Taumata Arowai Bill attached as Appendix 1
to the report;
(ii) approves the submission subject to feedback from the members; and
(iii) asks the Chair to forward the submission to the Health Committee.”
14. GENERAL BUSINESS (20/211)
The Chair advised the following:
(i) Issues relating to fees for Committee members, in particular iwi
representatives, had been resolved.
(ii) The Chief Executive of Porirua City Council and he had been invited to join
the New Zealand Minister of Local Government to travel to Hobart to meet
with Tasmania Water. The focus of the four day visit was to discuss how they
would move from 29 local authorities to form one entity to run and manage
Tasmania Water. This visit was expected to take place between 31 March 2020
to 3 April 2020.
Cr Rush advised that he was now unable to attend the trip because Wellington
City Council was unable to get travel insurance due to coronavirus.
In closing, the Chair acknowledged the challenging time for water management in
the Wellington area. He wanted to thank all parties for getting together to discuss
playing a key role in moving forward.
He thanked Wellington Water Limited staff who had worked tirelessly for the past
few months in challenging times.
There being no further business the Chair declared the meeting closed at 3.45pm.
Cr D Bassett
CHAIR
CONFIRMED as a true and correct record
Dated this 3rd day of June 202019 03 June 2020
Wellington Water Committee
20 May 2020
File: (20/428)
Report no: WWC2020/4/2
COVID-19 and the Impact on Wellington
Water's Performance Reporting for 2019-2020
Appendices
No. Title Page
1⇩ Appendix 1 Re prioritisation of Wellington Water s Work 20
Programme Due to Covid-10 and Impact on Performance for 2019-
20
2⇩ Appendix 2 SOI measures impact of Covid 29
DEM15-6-1 - 20/428 - COVID-19 and the Impact on Wellington Water's Page 19
Performance Reporting for 2019-2020Attachment 1 Appendix 1 Re prioritisation of Wellington Water s Work Programme Due to Covid-10 and Impact on
Performance for 2019-20
Covid-19 and the Impact on Wellington Water’s Performance
Reporting for 2019-2020
Purpose
1. To provide an overview of the changes to the company’s work programme due to Covid-19 and the consequential impact on end of year reporting
as well as seek a one month extension for the delivery of the company’s Statement of Intent.
Recommendation
2. It is recommended that the Water Committee:
a) Notes the company’s refocus on critical front line services due to Covid-19, the central government requirement to only undertake
essential services during level 4 alert, and the resulting impact that stopped or scaled back work will have on performance reporting for
the 2019/2020 financial year.
b) Notes the company is developing its Statement of Intent for 2020-23 and alignment will need to occur with the councils’ 2020/2021
annual plans.
c) Notes a report has been forward to each shareholder council to seek approval to extend the deadline for delivery of Wellington Water’s
final Statement of Intent 2020-23 by 1 calendar month (to 31 July 2020) in accordance with the Local Government Act 2002.
DEM15-6-1 - 20/428 - COVID-19 and the Impact on Wellington Water's Performance Reporting for 2019-2020 Page 20Attachment 1 Appendix 1 Re prioritisation of Wellington Water s Work Programme Due to Covid-10 and Impact on
Performance for 2019-20
Attachment
Appendix 2: Impact of Covid-19 on Statement of Intent performance measures
Summary
2. Due to Covid-19, there has been a need to refocus Wellington Water’s resources on the front line to ensure continuity of service to the
community and people are kept safe. The Alert 4 lock down has meant we have been restricted in terms of the work we can do as an essential
services provider.
3. We have reviewed our work, including capex projects, in light of set criteria that has been shared with central government, and all non-critical
work has been stopped or scaled back to the bare minimum. As a result, we have reassessed the company’s short to medium term priorities and
our focus during Level 4 lock-down has been on:
Safeguarding the welfare of staff and suppliers
Duplicating the front line
Reconfirming the capex programmes of work
Revising the Long Term Plan programme of work
Completing the implementation of the performance management system, including Maximo.
DEM15-6-1 - 20/428 - COVID-19 and the Impact on Wellington Water's Performance Reporting for 2019-2020 Page 21Attachment 1 Appendix 1 Re prioritisation of Wellington Water s Work Programme Due to Covid-10 and Impact on
Performance for 2019-20
4. The reprioritisation of work will have an impact on our year end performance reporting. We will still be able to report our performance against
our measures except for around five measures where we will not have the data available. For around 40 per cent of our measures, the end of year
result will be affected in some way due to stopping or scaling back work.
5. Given the unknowns around the Covid-19 restrictions, we are seeking a 1 calendar month extension from each shareholder council for completion
and delivery of the SOI to the councils from 30 June to 31 July 2020.
There has been a need to refocus the organisation
3. Due to Covid-19, and the Government’s imposed alert levels, we have refocused the organisation to reinforce our ability to continue to deliver
front line services and keep our people safe from the risks posed by the virus, while at the same time, ensuring that we deliver only the most
critical services as an essential services provider.
4. Our approach has been to redirect resources within the organisation and apply them to the most critical areas of front line services, including our
network and water and wastewater treatment plants, our customer operations group as well as other critical services within the business such as
payroll and accounts.
5. Our effort in the field is focused on keeping our treatment plants running and attending to jobs that pose the greatest risk to the continuity of
services to our communities. This approach applies to operations and maintenance work as well as renewals and upgrades. Our response to any
arising network emergencies will continue as usual. We will attend to urgent repairs that result in an outage to customers or sewage spillage
while holding back on routine jobs.
DEM15-6-1 - 20/428 - COVID-19 and the Impact on Wellington Water's Performance Reporting for 2019-2020 Page 22Attachment 1 Appendix 1 Re prioritisation of Wellington Water s Work Programme Due to Covid-10 and Impact on
Performance for 2019-20
We have had to scale back our capex work to essential work only
6. In response to the Covid-19 Level 4 lock-down by the New Zealand Government, we were required to stop all non-essential work. To assist in
determining which capex projects were most essential, we prioritised the projects in our 2019/2020 construction programme and made decisions
on which projects were critical, and closed down all other sites.
7. We used a set of four criteria to prioritise the work. The criteria were selected to be consistent with the company’s Service Goals as well as the
central government’s goals. The criteria were:
a) Safe and Healthy Water
b) Public Health – in the Covid-19 environment this is ‘safe homes and streets’
c) Enhancing the Environment – for instance, safe disposal of wastewater into the environment
d) Any activity that if shut down would make the situation worse.
8. These criteria have been applied to the planned operational capex as well as our renewals and upgrades. Based on the criteria, we have grouped
the work into three categories:
a) Critical – will proceed as an essential service
b) Urgent – able to be stopped and to recommence as soon as practicable (subject to availability of staff and resources), and
c) Stop – not critical, not urgent. Will recommence once construction activity is permitted to resume as normal.
DEM15-6-1 - 20/428 - COVID-19 and the Impact on Wellington Water's Performance Reporting for 2019-2020 Page 23Attachment 1 Appendix 1 Re prioritisation of Wellington Water s Work Programme Due to Covid-10 and Impact on
Performance for 2019-20
We have reassessed the company’s short to mid-term priorities
9. As a result of the current alert level and the requirements around providing essential services only, we reviewed the company’s most important
priorities in order to assess where work could be stopped or scaled back. Our aim was to free up resources to provide for duplication at the front
line as well as to ensure people’s safety.
10. The company’s short to mid-term priorities have been assessed as follows:
Company priority Comment
1 Safeguarding the welfare of staff and suppliers Our focus is to ensure the front line can work safely. This includes implementing social
distancing approaches, keeping vulnerable people away from the front line and
appropriate use of PPE.
We will ensure back-ups are in place for all key roles so that staff feel they can take sick
leave if they are feeling unwell.
We are making sure our people’s wellbeing is supported when working remotely.
We are also conscious of supporting our supply chain over this period and have
implemented a policy to continue paying our suppliers to advance cash flow.
2 Duplication to the front line We have had twice the critical resource required available on the front line (excluding
any personnel who are considered vulnerable). We continue to redeploy people within
DEM15-6-1 - 20/428 - COVID-19 and the Impact on Wellington Water's Performance Reporting for 2019-2020 Page 24Attachment 1 Appendix 1 Re prioritisation of Wellington Water s Work Programme Due to Covid-10 and Impact on
Performance for 2019-20
the organisation to the most critical areas.
3 Reconfirm the 2019/20 programme, set the 2020/21 The 19/20 capex work programme was stopped except for seven critical projects during
capex plan and set the 2021/24 tactical programme Level 4. We have reviewed which projects can be started up once restrictions are lifted.
with a focus on renewals
For 2020/21, our focus will be on completing the renewals which have been delayed due
to the impact of the Dixon St and Mt Albert events and the Covid-19 restrictions.
All councils will be reconsidering their annual plans in light of a reduction in revenue and
restricted ability to raise rates.
4 Long Term Plan Revised programme Covid-19 has changed the basis for our early signals long term plan advice and we will be
re-thinking our approach. We will continue to support councils in their thinking and have
completed a draft presentation to PCC and HCC for their discussions with central
government. There may be an opportunity to support broader economic stimulus
objectives.
5 Performance Management System & Maximo We will continue to strengthen the company’s performance management system to
ensure robust non-financial reporting. This will include implementing Maximo to
improve data capture for some of our time specific measures.
DEM15-6-1 - 20/428 - COVID-19 and the Impact on Wellington Water's Performance Reporting for 2019-2020 Page 25Attachment 1 Appendix 1 Re prioritisation of Wellington Water s Work Programme Due to Covid-10 and Impact on
Performance for 2019-20
Redirecting resources and undertaking only essential work will have an impact on our
non-financial performance reporting
11. To respond to the current challenges we have had to either stop or scale back business as usual work for Quarter 4. This means we will not be
able to deliver on some of our promises set out in the Statement of Intent 2019-2022 (SOI).
12. By stopping work in some areas, we will not have the requisite data to be able to report against some of the SOI measures. For other measures,
we will have the data and be able to report but we will not reach the agreed target.
13. Our general approach is to report where we can and tell the whole story. We will undertake our customer satisfaction survey and stakeholder
surveys to enable our ability to report. These surveys were released in April and will take a couple of months to complete.
14. A list of our impacted SOI measures are set out in Attachment 2. A summary of the impact is as follows:
Number of SOI measures that are impacted due to stopping or scaling back work 17
Number of SOI measures that won’t be able to be reported against at year end due to 5
reprioritisation
Number of SOI measures that are not impacted by the reprioritisation of work 28
DEM15-6-1 - 20/428 - COVID-19 and the Impact on Wellington Water's Performance Reporting for 2019-2020 Page 26Attachment 1 Appendix 1 Re prioritisation of Wellington Water s Work Programme Due to Covid-10 and Impact on
Performance for 2019-20
15. While our non-financial performance will be affected by the Covid-19 situation, it’s unclear at this stage how this will unfold. At this stage, our
people are still well and particularly due to the duplication approach, we are confident in our ability to deliver on the critical activities.
16. The Department of Internal Affairs measures are not part of the 2019-2022 SOI and therefore will not be included in the annual report. However,
we will report against them as part of the quarterly reporting to councils. Approximately half of the measures are expected to be impacted by our
reprioritisation of work; however, there is an opportunity to mitigate this impact. For example, we are deprioritising any non-urgent repairs so our
response and resolution times are expected to deteriorate. However, as we duplicate our critical staffing levels, there is potential to increase
productivity while our people remain healthy and road traffic is at a minimum.
Looking ahead to resuming normal operations and the Statement of Intent
17. While at this stage we don’t know how long the Covid-19 restrictions will be in place, we are continuing to think about how we will resume
normal operations.
18. The stopping or scaling back of work that can’t be done under the Covid-19 category levels will mean the work is deferred to the 2020/2021
financial year. This will have an impact on the draft SOI which is currently being finalised.
19. There is a statutory duty for the completed SOI to be delivered to the councils by the beginning of the new financial year.
20. The Water Committee’s governance oversight responsibilities include “receiving, considering and providing recommendations to the parties to
the Shareholders and Partnership Agreement regarding Wellington Water Limited’s final statement of intent”.
DEM15-6-1 - 20/428 - COVID-19 and the Impact on Wellington Water's Performance Reporting for 2019-2020 Page 27Attachment 1 Appendix 1 Re prioritisation of Wellington Water s Work Programme Due to Covid-10 and Impact on
Performance for 2019-20
21. Due to recent amendments to the Local Government Act 2002 (clause 4, Schedule 8) the shareholding councils can agree to extend the SOI
deadlines by up to 1 calendar month. Given the unknowns around the Covid-19 restrictions, we are seeking from the shareholder councils a 1
month extension for completion of the SOI 2020-2023 from 30 June to 31 July 2020. This would ensure the SOI reflects the priorities set out in the
councils’ annual plans.
22. A report has been forwarded to the councils for their approval of the extension.
23. Audit NZ has also informed us they will be completing their annual report audits for local government within broader timeframes. In the
event this affects our ability to deliver our annual report within the statutory deadline, we will apply for an exemption from the Office of
the Auditor General.
DEM15-6-1 - 20/428 - COVID-19 and the Impact on Wellington Water's Performance Reporting for 2019-2020 Page 28Attachment 2 Appendix 2 SOI measures impact of Covid
Impact of Covid-19 on Statement of Intent non-financial performance measures
Stop Report/Don’t Rationale
work/ report
continue
during
SOI 2019 Measures Level 3-4
Measure
Number
SOI Measure Target
Our customers will feel Continue Report
confident that the
drinking-water we
provide is safe because
1
we’ll maintain compliance
with the Drinking-water
Standards for New
Zealand Compliant
DEM15-6-1 - 20/428 - COVID-19 and the Impact on Wellington Water's Performance Reporting for 2019-2020 Page 29Attachment 2 Appendix 2 SOI measures impact of Covid
Our customers will not be Continue Report
exposed to any public
health risks because we’llAttachment 2 Appendix 2 SOI measures impact of Covid
Stop Report We are stopping our
work in reducing
Our customers will water usage and we
reduce the amount of are stopping our
water they are using at education
home because they have Percentage of people surveyed messages.
the information they need who had seen and understood
to be able to make nominated education messages The survey goes out
informed decisions and within same financial year: >27 in April.
5 change their behaviours per cent
Our customers will be Continue Report
able to enjoy our region's
beaches because we’ll
improve the number of Total number of days monitored
days that monitored beaches are closed is at most
beaches (between 1 five
November and 31 March)
are available for
6 swimming
Identify potential intervention Stop Don’t report We are stopping our
strategies work to improve
Our customers will feel water quality. We will
confident that our not have the data to
region’s waterways are Select a receiving environment set a baseline.
not adversely affected by water quality improvement
our services because project (i.e. an urban stream)
we’ll monitor and apply and assess it against
effective methods to intervention
manage and improve
7 water-quality Monitor urban stream water-
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quality to set baseline
Our customers’ homes Continue Report The target won’t be
and businesses will be achieved due to
protected from flooding Pinehaven and
because we’ll reduce the Kilbrinie projects not
number of habitable proceeding – this is
floors that are predicted 1 per cent reduction year on not due to
to be flooded by a 1:100- year (in the area modelled at reprioritisation.
8 year flood event the start of year)
5 per cent of households with Stop Report We are temporarily
Our customers will be 140+ litres of potable water ceasing the
resilient in the event of a stored per person education
natural disaster because programme so
we’ll improve the number Set a baseline for the achieving the target
of households that have percentage of households that may be impacted.
drinking-water stored and have appropriate wastewater
have a plan for the safe solutions
disposal of their
9 wastewater
Our customers will have Continue Report
positive interactions with
us because we’ll
measure and improve >80 per cent of surveyed
their customer customers rate us good, very
10 experience satisfaction good, or excellent
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Our customers will feel Continue Report
valued because we’ll
improve their customer 50 per cent of complaints
experience satisfaction resolved within 10 days
by acknowledging
problems with level of 80 per cent of complaints
service and working to resolved within 30 days
resolve them within
11 acceptable timeframes
Our customers will be Continue Report
kept safe because our
work sites will be safe
and result in no members Zero incidents reported to us,
of the public being our supply chain, or client
12 harmed councils
Our customers will get a Stop Don’t report Work has been
better understanding of deferred until the
where their water rates new financial year so
money is being spent we won’t meet the
because we’ll improve target.
the transparency of the
cost per connection of Analyse results and explore
13 our services implications
Our customers will feel Stop Don’t report Work has been
confident we’re creating deferred until the
value for money because new financial year so
we’ll maintain our assets Normalise results across we won’t have the
at a sustainable level councils and look for a regional data to work out a
14 now and in the future proxy regional proxy.
DEM15-6-1 - 20/428 - COVID-19 and the Impact on Wellington Water's Performance Reporting for 2019-2020 Page 33Attachment 2 Appendix 2 SOI measures impact of Covid
Our customers will feel Stop Report Carbon emissions
confident we’re working work has been
to understand and stopped so we will
reduce our carbon not meet the target.
emissions because we’ll Our consultants will
have a verifiable target Baseline carbon emissions continue do some
for reduced operational inventory complete and certified work in the
emissions and a plan for emissions management and background.
15 achieving that target reduction plan in place
Minimising carbon emissions Stop Report This work has been
study completed through stopped so we will
setting initial reduction target not meet the set
and action plan targets.
Complete flood and flood
management study
Resilience study completed
through gap analysis to identify
actions necessary to achieve
resilience service levels across
the three waters for all
customers, and associated
action plan
Recommended approaches for
We’ll better understand sustainable drinking water
future service needs by supply, wastewater sludge
completing Future management and receiving-
16 Services Studies environment water-quality
DEM15-6-1 - 20/428 - COVID-19 and the Impact on Wellington Water's Performance Reporting for 2019-2020 Page 34Attachment 2 Appendix 2 SOI measures impact of Covid
submitted to smart investment
process for prioritisation,
alongside other initiatives
(together with relevant actions
from carbon-emission reduction
and service resilience actions
plans)
Continue Report Won’t hit the target
We’ll make sure future due to the Covid-19
growth is supported by Network delivery plans disruption to work.
having well thought-out developed for identified growth
17 network delivery plans cells (at least five)
We’ll understand how our Continue Report
current networks perform
and plan for growth by
completing our three
water networks modelling
18 programme 66 per cent complete
We’ll build our Continue Report Will undertake
relationships with survey in April.
developers by improving
their satisfaction with the
advice and services we
19 offer 65 per cent satisfaction
Continue Report
We’ll meet all
environmental consent
requirements in the
20 delivery of our services Fully compliant
DEM15-6-1 - 20/428 - COVID-19 and the Impact on Wellington Water's Performance Reporting for 2019-2020 Page 35Attachment 2 Appendix 2 SOI measures impact of Covid
Continue Report Some projects
We’ll safeguard our relating to the water
drinking-water by Service delivery improvements safety plan have
completing our regional arising from the WSP prioritised been stopped.
21 Water Safety Plan (WSP) and implemented
We’ll supply wholesome Continue Report
drinking water at an
acceptable standard
(taste, clarity, and odour)
by maintaining
22 satisfaction < 550 complaints
We’ll minimise the impact Continue Report
of sludge odour and
landfill disposal by
maintaining minimal Landfill bind have dry solids
23 water content content of > 50 per cent
All customer enquiries are Continue Report
tracked and responded to
We’ll own customer calls within 60 minutes
end-to-end (by partnering
up with our client council 95 per cent of customer
call centres) and manage enquiries raised are resolved
customers’ expectations within the level of service
by embedding our (Priority 1-3) timeframes
customer behaviours
24 throughout our business
DEM15-6-1 - 20/428 - COVID-19 and the Impact on Wellington Water's Performance Reporting for 2019-2020 Page 36Attachment 2 Appendix 2 SOI measures impact of Covid
We’ll be reliable in the Stop Report Only critical work will
delivery of our renewals proceed so the SOI
and capital works target will not be
programmes by reached.
completing planned work 95-105 per cent of planned
25 within timeframes work completed
Stop Report Due to Quarter 4 not
being BAU, the full
We’ll work with our year result will not be
Contractor Panel to be a reflection of
cost-effective by efficiency. A
decreasing the cost per conversation needs
kilometre of laying pipes to be had with Audit
in real terms (adjusted for 5 per cent reduction year on- NZ as to how to
26 inflation) year report.
We’ll work with our Stop Report Due to Quarter 4 not
Consultant Panel to being BAU, the full
improve efficiency by year result will not be
reducing costs (from the a reflection of
current 15 per cent of efficiency. A
average fees per total conversation needs
construction costs) and to be had with Audit
lifting our internal Reduce (simple projects) to 14 NZ as to how to
27 capabilities per cent report.
Pinehaven Stream (complete Stop Report Some projects have
detailed design, consenting, been stopped so we
We’ll complete major commence construction) won’t achieve
stormwater projects: targets.
Pinehaven Stream; Porirua Stage 1 (complete
28 Porirua; and Kilbirnie detailed design, commence
DEM15-6-1 - 20/428 - COVID-19 and the Impact on Wellington Water's Performance Reporting for 2019-2020 Page 37Attachment 2 Appendix 2 SOI measures impact of Covid
construction)
Porirua network improvements Stop Report Some projects have
(complete concept design) been stopped so we
won’t achieve
Karori network improvements targets.
(complete concept design)
We’ll complete major
wastewater projects: Seaview seismic strengthening
Seaview; Porirua; and (complete construction)
29 Karori
Omāroro (complete detailed Stop Report Some projects have
design and consenting, been stopped so we
continue construction) won’t achieve
targets.
Moe-i-te-Rā (commence
consenting)
Aotea (complete consenting)
Silverstream (complete detailed
We’ll complete major design and consenting)
drinking-water projects:
Omāroro; Moe-i-te-Rā; Cross-Harbour Pipeline
30 Aotea; and Silverstream (complete concept design)
DEM15-6-1 - 20/428 - COVID-19 and the Impact on Wellington Water's Performance Reporting for 2019-2020 Page 38Attachment 2 Appendix 2 SOI measures impact of Covid
We’ll respond to Stop Don’t report We will not
customer issues conduct/record
following a significant customer call backs
event (flooding, during emergency
earthquake, landslip, situations in Q3,
major service failure) by therefore will not
keeping an accurate have any data to
record of all issues that report this measure.
occur and working
through them with our >90 per cent customer
customers within agreed experience satisfaction
31 timeframes (measured through call-backs)
Stop Don’t report We will not be
We’ll grow the water focussing on this
sector’s capabilities by work for Q4.
increasing technical
32 capability in our region Meet set targets
We’ll build a customer Stop Report We are temporarily
culture by developing stopping the
consistent customer customer behaviours
behaviours and work so will not
embedding these achieve the target.
behaviours in our 86 per cent of all staff know
company and the how their work affects
33 Alliance customers
We will understand Percentage of our people Continue Report
employee wellness by aware [of our] wellness
developing and running a initiatives increases year on
quarterly wellness survey year
34 that measures
DEM15-6-1 - 20/428 - COVID-19 and the Impact on Wellington Water's Performance Reporting for 2019-2020 Page 39Attachment 2 Appendix 2 SOI measures impact of Covid
awareness, participation, Percentage of our people [that]
and satisfaction with our participate [in] our wellness
wellness initiatives initiatives increases year on
year
Percentage of our people [who
are] satisfied with our wellness
initiatives increases year on
year
We will improve the Stop Report We are progressing
health and safety of our the second critical
people by reviewing two risk for the year
health and safety critical (fatigue). If we return
risks per year and to BAU in late April/
applying controls to Improved controls progress early May, we should
manage risks to an reported our Senior Leadership be able to achieve
35 acceptable level Team and the Board this result.
We’ll focus on gender Continue Report We know the target
equality by removing will not be met but
barriers to workforce not due to
participation to enable reprioritisation.
more gender equity in all
functions in the >35 per cent gender balance in
36 organisation functional roles
We’ll maintain our rating Continue Report
as trusted advisor by
working with our five
client councils to build
37 strong relationships Maintain trusted advisor rating
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We’ll improve our Continue Report
relationship with our
mana whenua partners
by improving their
satisfaction with their
ability to influence our
decisions on future
38 services 65 per cent satisfaction
We’ll improve our Continue Report
relationship with our
Customer Panel by
improving its satisfaction
with its ability to influence
39 our future services 65 per cent satisfaction
We’ll build our Continue Report
relationship with our
suppliers by improving
their satisfaction with
how easy we are to work
40 with 65 per cent satisfaction
We’ll make sure that our Continue Report
services support and
align with our client
councils’ Long-term >90 per cent alignment and
Plans by delivering on achievement of agreed
41 agreed outcomes outcomes
DEM15-6-1 - 20/428 - COVID-19 and the Impact on Wellington Water's Performance Reporting for 2019-2020 Page 41Attachment 2 Appendix 2 SOI measures impact of Covid
We’ll deliver on what we Continue Report
set out to do by
completing capital
projects that meet the 10 per cent sample
requirements of the demonstrates >95 per cent
42 project design briefs achievement
Implementation of Alliance Continue Report
delivering agreed outcomes
We’ll deliver our service from 31 July 2019
delivery strategy by
implementing the Implementation of Contractor
Alliance, implementing Panel delivering agreed
the Contractor Panel, outcomes from 31 July 2019
and introducing a
consolidated wastewater Start phased implementation of
treatment plant (WTP) new WTP contract
43 contract
Continue Report
We’ll create value for
money by delivering two
Smart Services ideas Two Smart Service ideas
44 each year delivered
We’ll better support the Continue Report
delivery of our services
by identifying where we Simplification programme plan
can streamline and in place
simplify our systems
45 (subject to funding) Delivery in line with plan
DEM15-6-1 - 20/428 - COVID-19 and the Impact on Wellington Water's Performance Reporting for 2019-2020 Page 4243 03 June 2020
Wellington Water Committee
21 May 2020
File: (20/434)
Report no: WWC2020/4/3
Company Update Report
Appendices
No. Title Page
1⇩ Appendix 1 Company Update Report May 2020 44
DEM15-6-1 - 20/434 - Company Update Report Page 43Attachment 1 Appendix 1 Company Update Report May 2020 Wellington Water Committee Company Update Report Purpose 1. To give the Wellington Water Committee an overview of the matters most important to the ongoing performance of the company. Attachments 2. There are no attachments. Covid-19 3. On the 24th of March 2020, New Zealand went into lockdown to prevent the community transmission of the Covid-19 virus. On the 14th of May 2020, New Zealand emerged from lockdown (and level 3) into level 2 which can be generally described as “getting back to some normality” with all the new health and safety requirements in place. 4. The company is an essential service provider. Under the threat of Covid-19 we paused the company, reassessed our priorities and put all our efforts into supporting our frontline people who were operating the treatment plants working on the networks or delivering critical projects. 5. To assure our council owners we could continue to provide all our services should there be community transmission, we duplicated the number of frontline workers undertaking critical activities and those backing them up in the office (virtual office). As it turned out the virus was kept in check, our staff remained healthy and we kept delivering the services. We also made some in-roads into the backlog of service requests we are carrying so we should see some improvement in response times when we report these both at the end of Q4 and for the entire year in our Annual Report. 6. While we only attended to critical projects over the lockdown period we released additional waves of projects as we stepped down through level 4 to level 2. All projects are now “live again”. We have estimated the holding costs of the lockdown on projects and reported these to council owners together with any carryovers caused by the 6-8 week hiatus. 7. We have started to re-occupy the IBM building but we are careful in doing so. We have all learnt a number of lessons from the lockdown including the benefits of new tools like “Zoom” and “Microsoft Teams” and the additional productivity some staff can get from working at home. We are determined to lock in some of these lessons into a more flexible way of working and trusting our people to deliver the work. 8. We are now focused on the planning for the 20/21 financial year and delivering to you our best advice for your 21/31 Long Term Plan (LTP). Overall we will lose about three months of the year to Covid-19 and we explain the impact this will have on our end of year performance reporting against the 2019/20 Statement of Intent (SOI). DEM15-6-1 - 20/434 - Company Update Report Page 44
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