Wellington Water

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This article is about the asset management company. For details, condition and performance of the three waters assets in the Wellington region, see Water supply and sanitation in the Wellington region.

Wellington Water
Industry
PredecessorCapacity Infrastructure Services
FoundedSeptember 2014
Headquarters
Wellington
,
New Zealand
Key people
Campbell Barry–Chair, Colin Crampton–Chief Executive
Services
OwnersHutt, Porirua, Upper Hutt and Wellington city councils, South Wairarapa District Council and Greater Wellington Regional Council.
Websitewww.wellingtonwater.co.nz

Wellington Water Limited is an infrastructure asset management company that manages the drinking water, wastewater and stormwater services of the councils in the Wellington Region of New Zealand.

Ownership and governance[]

The three waters assets managed by Wellington Water are owned by councils including Hutt, Porirua, Upper Hutt and Wellington City councils, South Wairarapa District Council and Greater Wellington Regional Council. Wellington Water is jointly owned by all six councils.[1]

The South Wairarapa District Council transferred the management of their water infrastructure to Wellington Water, as from 1 October 2019.[2][3]

Wellington Water manages the water assets on behalf of the six councils, but the individual councils retain ownership of their assets, and set their own rates and user charges.[4][5][6][7]

Each council is represented on a regional Wellington Water Committee that provides overall leadership and direction for the company. Governance is provided by a board of independent directors.[8]

The Chairman of Wellington Water from its establishment in 2014 was Hutt City Councillor David Bassett. In March 2021, Bassett announced his intention to step down from the role.[9] The mayor of Hutt City, Campbell Barry, was elected as the new chair of Wellington Water in May 2021.[10]

In June 2021, Wellington City Council (WCC) announced the resignation of the council's chief infrastructure officer, Tom Williams. This role was responsible for the working relationship between WCC and Wellington Water. Williams was originally appointed after an independent report commissioned by the WCC chief executive in December 2019 found that the relationship between the two entities was lacking trust, and that the management services agreement had remained unsigned for over three years. In a comment about Williams resignation, the WCC chief executive said that Williams had "built a strong working relationship with Wellington Water."[11]

Asset condition and service performance[]

Main article: Water supply and sanitation in the Wellington region

The challenges for Wellington Water in managing the three waters include the deteriorated condition of pipelines in the Wellington metropolitan area. The pipelines are in significantly worse condition than those in other large networks nationwide, and there has been a recent history of serious failures. The water supply to the region is also at significant risk during a severe earthquake, although some projects are underway to improve resilience.

In March 2021, a Director of Wellington Water stated that the company was in dangerous spiral, where the pressure on resources caused by continuing failures was taking funding away from new investment. Councils who are part owners of Wellington Water are increasing the funding for three waters in their Long Term Plans. However, concerns have been raised about the ability of the local resources to deliver an increased volume of work.[12]

Water supplies to the Wellington metropolitan area meet the requirements of the Health Act and conform with drinking water standards. However, for some of the towns in the Kapiti Coast and Wairarapa regions, there have been occasional non-conformances with the required standards for drinking water quality and safety.

Performance targets[]

In December 2019, a report to the Wellington City Council revealed that Wellington Water was failing to meet performance targets for response times to urgent callouts, and that it required $600,000 of additional operating funding to clear a backlog of leak repairs.[13]

In February 2020, Wellington Water reported to Wellington City Council that it was not meeting its annual performance targets. It had already failed to meet targets for sewage overflows into the harbour, E coli contamination and callout response times. As one example, the average response time to urgent call outs was eight hours – twice the target of four hours. Wellington Water called for a 30 year programme of investment, and suggested that performance targets be relaxed. The Mayor Andy Foster, said any suggestion to lower targets was rejected.[14]

In December 2020, Audit New Zealand criticised Wellington Water for weaknesses in their non-financial performance indicators, including inability to accurately report the number of complaints about water supply, stormwater or wastewater, or accurately report the number of dry weather sewage overflows. In one twelve month period, there were 2096 reported overflows of wastewater across the network against a target of less than 100.[15]

Management of large projects[]

A $10 million increase in the forecast cost of the Omāroro reservoir was reported in June 2020, bringing the new total to almost $70 million. Wellington City Councillors expressed concern about the ability of Wellington Water to manage a project of such a large scale. The council required an independent engineer to sit on Wellington Waters' Major Projects board, and report back to the council.[16]

Industry reform[]

On 28 January 2020, the Minister of Local Government, Hon Nanaia Mahuta, released Cabinet papers and minutes setting out intentions for reform of service delivery and funding arrangements for the three waters services nationwide. The Cabinet paper referred to two key challenges of affordability and capability that are facing New Zealand's three waters service delivery. There was specific reference to Wellington Water as an example of one approach to service delivery that had successfully built capability through the scale of operations. However, the paper also noted that Wellington Water has no ability to make trade-offs between operating and capital expenditure, nor can it cross-subsidise between owners or ratepayers in different districts.[17]

Public relations[]

In March 2020, following an period of multiple issues with failures leading to sewage contamination of Wellington harbour, beaches and waterways, Wellington Water engaged an international public relations company SweenyVesty to help improve its community engagement and consultation.[18]

In June 2020, there was criticism from a city councillor that Wellington Water had engaged a market research company Colmar Brunton to gather feedback from stakeholders. However, the Chair of the committee overseeing Wellington Water defended the expenditure on the grounds that the annual survey provides quantitative data for performance measures for the company and provides feedback to help the company improve.[19] In the 12 months to December 2020, Wellington Water spent over $350,000 on external public relations and communications consultants.[20]

See also[]

References[]

  1. ^ "Wellington Water Limited (1337122)". New Zealand Companies Office. Retrieved 2 April 2020.
  2. ^ "Government gives thumbs up to South Wairarapa water move". Minister of Local Government, Hon Nanaia Mahuta. 18 April 2019. Archived from the original on 13 May 2020. Retrieved 7 April 2020.
  3. ^ "South Wairarapa District Council joins Wellington Water". South Wairarapa District Council. 26 September 2019. Archived from the original on 13 May 2020. Retrieved 7 April 2020.
  4. ^ "Our story". Wellington Water. Archived from the original on 13 May 2020. Retrieved 2 April 2020.
  5. ^ "Council controlled organisations – Wellington Water Limited". Wellington City Council. Archived from the original on 13 May 2020. Retrieved 3 April 2020.
  6. ^ "Council-controlled organisations". Greater Wellington Regional Council. Archived from the original on 13 May 2020. Retrieved 3 April 2020.
  7. ^ "Council-controlled organisations". Hutt City Council. Archived from the original on 13 May 2020. Retrieved 2 April 2020.
  8. ^ "Company structure". Wellington Water. Retrieved 2 April 2020.
  9. ^ Keogh, Brittany (3 March 2021). "Wellington Water chair David Bassett steps down ahead of Three Waters announcement". Stuff. Retrieved 3 May 2021.
  10. ^ Campbell, Georgina (17 May 2021). "Hutt City Mayor Campbell Barry elected as new Wellington Water Committee chairman". New Zealand Herald. Retrieved 20 May 2021.
  11. ^ "Wellington City Council chief infrastructure officer quits". NZ Herald. Retrieved 28 July 2021.
  12. ^ Campbell, Georgina (9 March 2021). "Wellington Water in 'dangerous spiral'". New Zealand Herald. Retrieved 3 May 2021.
  13. ^ Campbell, Georgina (31 December 2019). "Report reveals Wellington Water flailing in a sea of red". NZ Herald. Archived from the original on 13 May 2020. Retrieved 7 April 2019.
  14. ^ Thomas, Rachel (9 May 2020). "Wellington Water calls on council to relax performance targets". RNZ. Archived from the original on 13 May 2020. Retrieved 10 May 2020.
  15. ^ Campbell, Georgina (16 December 2020). "Audit NZ finds significant problems with Wellington Water's performance measures". NZ Herald. Retrieved 13 August 2021.
  16. ^ Lock, Harry (4 June 2020). "Wellington Omāroro Reservoir project: council approves $10m boost". RNZ. Archived from the original on 4 June 2020.
  17. ^ "Proactive release of Cabinet material about three waters service delivery and funding arrangements" (PDF). Hon Nanaia Mahuta, Minister of Local Government. 28 January 2020. Retrieved 26 April 2020.
  18. ^ Hunt, Tom (8 March 2020). "Wellington Water hires global crisis management team as water woes drag on". Stuff. Archived from the original on 13 May 2020. Retrieved 6 April 2020.
  19. ^ Te, Mandy (5 June 2020). "Wellington Water uses survey to ask if relationship is 'warm or cold'". Stuff. Archived from the original on 14 June 2020.
  20. ^ George, Damian (18 December 2020). "Ratepayers fork out $354,000 for PR firms following Wellington water woes". Stuff. Retrieved 3 May 2021.

External links[]

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