Annual Report 2011 - Watercare

Watercare Services Limited
2011 ANNUAL REPORT
2011 STATEMENT OF SERVICE PERFORMANCE
Environmental care
(a) To promote conservation of the region’s water resources.
(i) To develop and initiate the implementation of a regional water efficiency and conservation plan for the integrated company by 30 June 2011.
The Auckland Regional Water Demand Management Plan, which includes initiatives and actions to help reduce water demand, was completed
and sent to the Auckland Council on 30 June 2011. The plan was developed in consultation with a range of stakeholders including the
Auckland Council and the Environmental Advisory Group and is aimed at reducing or delaying the need to access new water sources and
future capital expenditure. Watercare has adopted the Three Waters strategic demand target of achieving a 15% reduction on the 2004 level
of water demand by 2025. Implementation of the plan involves working closely with a range of stakeholders.
(ii) To maintain regional unaccounted for water losses at less than 17.7 billion litres. (Applicable from 1 November 2010)
A proportion of the water supplied by Watercare is not invoiced (non-revenue water) because it is used as part of the production process
(such as flushing), for fire fighting, meter inaccuracy and unauthorised usage. Some of these volumes are calculated based on the best
information available and other industry-accepted parameters. The balance of non-revenue water is unaccounted for water losses and was
estimated at 11.4 billion litres against a seasonally-adjusted eight-month target of 12.1 billion litres for the post-integration period. Part of
the forward programme is to improve the accuracy of the measurement of non-revenue water volumes.
(b) To promote to industry cleaner discharges.
(i) To achieve a ‘Bb’ grade as set out in the 2003 NZWWA guidelines for the safe application of biosolids to land.
Biosolids metals testing for the 2010/11 year showed that 97% of tests confirmed the Bb grade or better for biosolids. During the year
there was a spike in zinc levels at the Mangere wastewater treatment plant. As biosolids are blended as part of the disposal process, overall
biosolids for the year were Bb grade. In general the predominant source of zinc to the wastewater system is stormwater, which contains
galvanised roofing and road (wear on tyres and brakes) runoff and enters via the combined sewer/stormwater system that exists in parts
of Auckland. The period of recorded elevated zinc levels may be the result of the cleaning of the stormwater system or the result of illegal
dumping from industrial sites. Inquiries were ongoing to identify the cause.
(c) To minimise the impact of carbon on the environment.
(i) To achieve a 75% CO 2
equivalent reduction from 1990 levels over the next three years.
The estimated levels of greenhouse gas emissions have been reduced dramatically since 1990. This has been achieved by the removal of
oxidation ponds at Mangere and their reduced usage at Rosedale, the removal of sludge lagoons and the collection of methane for electricity
generation at both these wastewater treatment plants. For Mangere alone, the reduction has been 86%. By comparison with the levels at
these two largest plants, emission levels elsewhere in the company are minor, but the company continues to implement policies to reduce
these levels. Based on accepted IPCC extrapolation factors, estimates for significant 1990 emissions across the integrated company indicate
that the 75% target was achieved for 2010/11.
(d) To use energy efficiently and where appropriate recover energy from operational activities.
(i) To target 35% of energy needs sourced internally for each of the next three years.
This year, Watercare sourced 32% of its energy internally, principally from biogas reuse at its two largest wastewater plants, Mangere and
Rosedale, and from five hydro-electric generators within the water supply system.
Health, safety and well-being
(a) To promote staff productivity and wellbeing.
(i) To attain a lost-time injury frequency rate (LTIFR) of less than or equal to 5.
Watercare staff achieved a LTIFR rate of 3.22, which was well within the target range. Prior to a serious incident at Onehunga, Auckland,
on 4 June 2011 Watercare had operated for 18 months without a lost-time injury.
(ii) To target an unplanned absenteeism rate of less than 2.5%.
Watercare achieved an unplanned absenteeism rate, including sick leave, of 2% (equivalent to 4.5 days per employee), which was within
the target range.
(b) To provide comprehensive training and development programmes.
(i) To target over 20 training hours per employee.
Employees received 20.7 hours of training each on average. This result was slightly higher than the performance target and reflects the
company-wide focus on integration.
(ii) To target a ratio of less than 2.25:1 of external to internal appointments.
The ratio of external to internal appointments was 1.2:1, being 12 external appointments for every 10 internal appointments. This ratio
was influenced by the integration of the company under Part 2 of the Local Government (Auckland Transitional Provisions) Act 2010.
Staff transferred from the local network operators (LNOs) were considered internal appointments.
(c) To provide employees with safe working conditions.
(i) To maintain the tertiary-level ACC workplace management practices accreditation.
ACC tertiary-level accreditation was maintained following an audit in December 2010.
2011 Financial Report
PAGE 107
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