Annual Report 2011 - Watercare

Watercare Services Limited
2011 ANNUAL REPORT
2011 STATEMENT OF SERVICE PERFORMANCE (continued)
Stakeholder relationships
(a) To engage with stakeholders in a transparent and collaborative manner including the company’s Maori and environmental
advisory groups.
(i) To consult with all appropriate stakeholders in regard to key infrastructure projects.
Regular communication occurs between Watercare and its stakeholders in relation to key infrastructure projects. Following integration
Watercare has worked closely with departments of council and has communicated with local boards.
The company retains its independent Maori and Environmental Advisory Groups and also engages with the local community liaison groups on
relevant issues. There were five formal meetings with each advisory group, one of which was a combined meeting, and another workshop for
each group.
(ii) To consult with relevant stakeholders in the development of the Regional Asset Management Plan, including major projects.
LNOs and key stakeholders were consulted during the development of the 2011/12 Asset Management Plan (AMP), which was also reviewed
by the Auckland Council’s CCO monitoring group. Following integration, Auckland Council became the key stakeholder, and all information
and meetings were open to the public. For instance, the northern strategic growth area (NorSGA) and the Kumeu, Huapai and Riverhead
(KHR) developments followed a process of consultation by the two local councils and two LNOs with local residents and Watercare. Following
integration, Watercare has continued with direct consultation with the Auckland Council, local residents and the Local Boards. The 2011/12
AMP was initially developed in consultation with the local councils and LNOs and discussed with the Auckland Council CCO Strategy and
Review Sub-Committee on 21 April. Feedback was included in the 2011/12 SCI.
(iii) To obtain annual feedback from the company’s advisory groups on the consultation process.
The advisory groups meet on a quarterly basis during the year. Feedback from the groups is included in the 2011 Annual Report.
(b) To provide leadership within the water industry and participate in public policy initiatives and statutory submissions.
(i) To report on the number of policy initiatives and key submissions made per annum.
Updates on policy submissions and progress are reported to the directors each month and to the shareholder each quarter.
(c) To promote appropriate educational and recreational initiatives.
(i) To continue with the Rain Forest Express, the ‘Adopt a Stream’ and other educational programmes as appropriate.
Both Watercare community programmes continue to be very popular. The number of pupils who took part in the Adopt A Stream programme
was 6,988 for the year end 30 June 2011. Patronage on the Rain Forest Express was strong for the year and was approximately 11% higher
than the previous year.
(d) To maintain sound governance and contribute to the development of a productive working relationship with the
Shareholder Representative Group (SRG).
(i) To hold briefings with the SRG at least once every six months and to undertake Council briefings as requested.
Watercare briefed the SRG, Auckland City Council, Waitakere City Council and North Shore City Council prior to their disestablishment.
Following integration, Watercare has held briefings with the Auckland Council.
Customer service commitment
(a) To supply high quality and reliable drinking water.
(i) To maintain the public health grading of water treatment and networks of ‘Aa’.
Water quality has been maintained based on the 2009/10 grading assessment carried out by the Auckland District Health Board on behalf
of the Ministry of Health 1 .
Metropolitan: The metropolitan treatment plants and distribution network supplying the majority of the Auckland population were ‘Aa’ graded
in 2009/10.
Rural: Upon integration, only two of the 14 non-metropolitan water treatment plants and networks were graded ‘Aa’ when transferred to
Watercare. Nine plants and related networks were ungraded. A series of short-term actions were undertaken to address the bacteriological
and protozoa compliance requirements, and plant condition and reliability issues. A long-term strategy to achieve ‘Aa’ grading of all plants
by 2020 is being implemented, with the majority of plants targeted by 2015. The strategy involves replacing the water source and water
treatment plants as necessary, at a total estimated cost of $100 million. A priority was replacing the water supply to Pukekohe by a 6.5km
pipeline from the Waikato River at a cost of $13 million. This was initially approved in February 2011 and is due for completion in 2013.
2011 Financial Report
(ii) To ensure that demand can be met in a drought with a 1% probability of occurrence with 15% residual capacity in its reservoirs.
The drought standard is being achieved in the integrated network. The Waikato Water Treatment Plant upgrade that is currently underway
will ensure Watercare continues to meet the required drought standard as the population of Auckland increases. This excludes Rodney and
Franklin districts which are being addressed as part of the rural plant upgrades
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1 The 2010/11 grading assessment had not been received by completion of the Annual Report.
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