Three Waters Report and Outlook for the Quarter Ending 30 June 2017

Three waters report and outlook For the quarter ending 30 June 2017

Our water, our future. Our operating conditions Three waters report and outlook The after effects of the November 2016 earthquake have For the quarter ending 30 June 2017 dropped away but are still having an impact on our business. Operationally we are still seeing a higher number of leaks in our networks, particularly in areas where our network is Contents seismically vulnerable. We also continue to have higher levels Our operating conditions...... 2 Front page picture of infiltration in certain parts of our wastewater network, A dawn blessing was held for particularly in the Wellington CBD. We are still investigating Outcome 1 – Safe and healthy water...... 3 the harbour bores barge and drilling rig before it was towed the sources but it is believed this is partly related to Outcome 2 – Respectful of the environment...... 5 to site in Wellington Harbour. earthquake damaged pipes. Outcome 3 – Resilient networks support the economy...... 7 Our head office in Petone has some questions around its In the news building strength and we are working on understanding Health and safety...... 9 what this may mean for us as a frontline infrastructure company in the future. http://www.stuff.co.nz/national/ Value for money...... 10 health/91957456/earthquake-damage-a- The construction labour market remains tight. Our contractors are telling us that finding and possible-source-of-ecoli-in-lower-hutt-water Programme delivery ...... 11 retaining key staff is tricky. The construction industry needs an additional 30,000 workers by http://www.stuff.co.nz/ Stakeholder engagement...... 12 environment/92132386/whats-polluting- 2019. One in five new jobs created between 2016 and 2019 would be in construction, according our-urban-harbours-and-streams to Ministry of Business, Innovation and Employment forecasts. A labour crunch in construction http://www.stuff.co.nz/national/ was also highlighted by Statistics NZ which showed that almost 80 per cent of construction health/92182391/expert-wants-details-of- firms reported vacancies last year. Around 3,600 out of roughly 4,600 construction businesses ecoli-in-lower-hutts-aquifer-made-public represented in the survey had needed staff, and nearly 60 per cent said they had hard-to-fill http://www.radionz.co.nz/news/ vacancies. Trade-related skills, management or supervisory skills, and professional or technical skills national/330086/lower-hutt-water-likely- were the hardest skills to find in job applicants. to-be-’permanently-chlorinated’ http://www.radionz.co.nz/news/ New connection applications national/330521/drilling-to-begin-to-access- wellington’s-undersea-freshwater Four cities https://www.tvnz.co.nz/one-news/ Previous quarter This quarter new-zealand/wellingtonians-could-soon- drinking-water-beneath-harbour https://www.stuff.co.nz/dominion-post/ news/94106831/government-6m-to-part- 81 fund-emergency-water-supplies-in-the- 88 wellington-region Year to date: 169 This quarter, last year: 100 Year to date, last year: 211

2 Your public water company. Safe and healthy water THREE WATERS REPORT AND OUTLOOK 1 APRIL – 30 JUNE 2017 Outcome 1 Treatment installed for Lower Hutt water supply Our investigations into the possible causes We delivered and consequences of the recent detection of bacteria in aquifer water concluded in 12,825 million litres Drinking water supplied July, without identifying a specific source of safe drinking water to 144,000 of the bacteria. This means we have to act 14,500 12 months: 1 Jul 2015on - 30the assumption Jun 2016 the same12 thing months: 1 Jul 2016 could connections - 30 Jun 2017 during this quarter. Jul - Sep Q1 12147.0happen again, and as a result, we continued 12434.9In the same quarter last year (April 14,000 to chlorinate the water supply to the Hutt Oct - Dec Q2 13228.8Valley. We are also fast-tracking a project to 13102.2– June 2016), we delivered 12,537 13,500 Jan - Mar Q3 13899.4install ultraviolet treatment at the Waterloo 13293.9million litres. Treatment plant, in time for summer. 13,000 Apr - Jun Q4 12537.4Investigations into possible sources of 12824.9 contaminationService Goal in the widerperformance aquifer are reporting 12,500 continuing, led by a team from the Greater Reporting to: Jun-17 Quarterly Status

Customer YTD Millions of Litres Wellington Regional Council. Service Goal Aspirational Direction 12,000 Outcome StatusYTD Q1Q1 Q2 Q2 Q3 Q3 Q4 Q4 11,500 We provide safe and healthy drinking water Stay the same S S S S S 12 months: 1 Jul 2015 - 30 Jun 2016 12 months: 1 Jul 2016 - 30 Jun 2017 11,000 We operate and manage assets that are safe for our suppliers, Stay the same S S S S Q1 Q2 Q3 Q4 people and customers S Jul - Sep Oct - Dec Jan - Mar Apr - Jun We provide an appropriate region-wide fire-fighting water supply Stay the same S S S S to maintain public safety S Safe and Healthy Water Healthy and Safe

We minimise public health risks associated with wastewater and Stay the same S S S S stormwater S

Customer YTD Quarterly Status Service Goal Aspirational Direction Outcome Status Q1 Q2 Q3 Q4

We manage the use of resources in a sustainable way Improve S S S S S Your public water company. 3

We will enhance the health of our waterways and the ocean Improve S S S S S

We influence people’s behaviour so they are respectful of the Improve S S S S environment S

Respectful of the environment the of Respectful We ensure the impact of water services is for the good of the Improve S S S S natural and built environment* S

Customer YTD Quarterly Status Service Goal Aspirational Direction Outcome Status Q1 Q2 Q3 Q4

We minimise the impact of flooding on people’s lives and Improve S S S S proactively plan for the impacts of climate change S

We provide three water networks that are resilient to shocks and Improve S S S S stresses S

We plan to meet future growth and manage demand* Improve S S S S S

We provide reliable services to customers Stay the same S S S S S Resilient networks support our economy* our support networks Resilient

* Minor wording changes made to better reflect the intent of the Outcome and Goal. SOI version still being tracked and reported against. Safe and healthy water THREE WATERS REPORT AND OUTLOOK 1 APRIL – 30 JUNE 2017 Outcome 1 Water supply issues: Temporary removal of Waiwhetu Aquifer bores from service Buick Street public aquifer taps reopened to public We temporarily removed four of the eight Waiwhetu Aquifer bores from service due to The Buick Street public taps were increased levels of bacterial activity at these particular bores. The current level of water reopened to the public on 26 June. demand is able to be met by the remaining four bores, and the Gear Island Water Treatment The fountain was closed in mid- Plant has returned to service following damage from the earthquake and thorough checks April due to the bacterial activity in for bacterial contamination. Once demand begins to pick up in spring and summer we will the aquifer. need to reinstate the other bores in order to meet the expected summer demand for water. We installed a small UV unit that With this in mind, we’ve begun work to install an interim UV unit at Waterloo Water treats the source water before it Treatment Plant. This is expected to be installed and operational by September. The comes out of the tap. At the flow- installation of this unit and the continued chlorination will give us confidence that the rate of water from the public taps, bacterial and protozoa risk is removed. This first interim UV unit has enough capacity to the UV unit provides effective cover the winter demand for water; we’re looking at adding an additional two UV units so barriers against contaminants that we can cover the expected summer demand. such as giardia, cryptosporidium, campylobacter and E.coli, and Macaskill Lakes – filter replacement project under way complies with the Drinking Water We have replaced and commissioned the first of the six filters at the Te Marua Water Standards of New Zealand. UV Treatment Plant with a new material that will reduce the risk of taste and odour problems, treatment is a non-chemical as well as reducing the risk of toxins from algae. We are expecting this work to be treatment option that doesn’t completed by November 2017. affect the taste of the water. Return to service of the Gear Island Water Treatment Plant The public taps at Dowse Square on Laings Road were re-opened in The Gear Island Water Treatment Plant has returned to service following damage from the early August. earthquake and thorough checks for bacterial contamination.

Lower Hutt’s mayor Ray Wallace looks on as Wainuiomata resident Irving Caldwell fills bottles from the Buick Street public taps.

4 Your public water company. Outcome 2 – Respectful of the environment THREE WATERS REPORT AND OUTLOOK 1 APRIL – 30 JUNE 2017 Outcome 2 Setting limits and objectives for fresh water Consent compliance 1 April – 30 June 2017 (snapshot covering these activities) As an entity which discharges contaminants through our stormwater and wastewater network Service Goal performance reporting into freshwater bodies and also as the supplier of the region’s bulk water, Wellington Water will be Nature of work ReportingTarget to: Jun-17 Status Customer YTD Quarterly Status required to meet objectives and limits set by the Greater Wellington Regional Council through its Service Goal Aspirational Direction OutcomeExtracting water Full compliance Status Q1 Q2 Q3 Q4 Natural Resources Plan. ✓ A freshwater objective describes intended environmental outcome(s) - for example, to either Discharging waterWe provide safe and healthy drinking water Full complianceStay the same S✓ S S S S improve or maintain the current state of a freshwater body (stream or river). Wastewater – dry weather overflows Full compliance We operate and manage assets that are safe for our suppliers, ✓ Stay the same S S S S A limit is the maximum amount of resource use available that allows a freshwater objective to be people and customers S met. For water quality, a limit is the total allowable amount of contaminants at one point within a Wastewater – wet weather overflows Full compliance ✓ We provide an appropriate region-wide fire-fighting water supply catchment. For water quantity, a limit is the allowable take of water within a water body (including Stay the same S S S S Stormwater dischargesto maintain public safety Full compliance S groundwater). ✓ Safe and Healthy Water Healthy and Safe

How we carry Weout minimise our work public health risks associated with wastewaterFull complianceand ✓ Stay the same S S S S Whaitua committees stormwater S Whaitua committees are Greater Wellington’s Regional Council’s response to the requirement for ✓on track ✓some cause for concern ✓not complying Customer YTD Quarterly Status regional councils to collaborate with the wider community and iwi to set objectives and limits for Service Goal Aspirational Direction Outcome StatusYTD Q1Q1 Q2 Q2 Q3 Q3 Q4 Q4 freshwater quality and quantity. A whaitua is an area or catchment. A whaitua committee is a group of representatives from Iwi, We manage the use of resources in a sustainable way Improve S S S S S territorial authorities and community representatives who develop policy for a whole-of-catchment approach to improving water quality. We will enhance the health of our waterways and the ocean Improve S S S S S Te Awarua o Porirua Whaitua Committee was established in December 2014, and is working to produce a Whaitua Implementation Programme (WIP) which will be presented to Greater Wellington We influence people’s behaviour so they are respectful of the Improve S S S S Regional Council in 2017. environment S

If you would like to get more involved in the whaitua process, or get along to a Te Awarua o Porirua environment the of Respectful We ensure the impact of water services is for the good of the Improve S S S S Whaitua Committee please don’t hesitate to contact Kara Dentice - Senior Advisor Whaitua natural and built environment* S Relationships. Customer YTD Quarterly Status Service Goal Aspirational Direction Outcome Status Q1 Q2 Q3 Q4

We minimise the impact of flooding on people’s lives and Improve S S S S S proactively plan for the impacts of climate change Your public water company. 5

We provide three water networks that are resilient to shocks and Improve S S S S stresses S

We plan to meet future growth and manage demand* Improve S S S S S

We provide reliable services to customers Stay the same S S S S S Resilient networks support our economy* our support networks Resilient

* Minor wording changes made to better reflect the intent of the Outcome and Goal. SOI version still being tracked and reported against. 1 of 1 Wellington Water Company Result Sheet 15/08/17

1 of 1 Wellington Water Company Result Sheet 15/08/17 JUNE 2015 REPORT Results Sheet - Trend Analysis of Wellington Water Outcomes Not quite on Meets target Not on target Data N/A target This report provides further detail and analysis of the outcomes section of the Company Result Sheet JUNE 2015 REPORT Results Sheet - Trend Analysis of Wellington Water Outcomes Not quite on Meets target Not on target Data N/A target This report provides further detail and analysis of the outcomes section of the Company Result Sheet SAFE TO DRINK - water delivered to the taps of the regions ' houses and business that satisfies consumers and meets or exceeds our clients' expectations

1.1 SAFE TO DRINK - water delivered to the taps of the regions ' houses and business that satisfies consumers and meets or exceeds our clients' expectations 1.2 Council Gradings THREE WATERS REPORT AND OUTLOOK 1 APRIL – 30 JUNE 2017 Current Target …and…we maintain our WATER SUPPLY B A Wainui A1 TeMarua A1 Do we have safe ü1.1 …we know this becauseOutcome we comply with part 2 four – of Respectful of üthe environment ü 1.2 Council Gradings GRADING from the Ministry of Health water? the DRINKING WATER STANDARDS Current Target …and…we maintain our WATER SUPPLY B A Wainui A1 TeMarua A1 YES DoOutcome we have safe ü …we know this because we comply100.0% with part four of 100.0% ACHIEVED ü ACHIEVEDü A A-B Waterloo B Gear Island A1 GRADING from the Ministry of Health water? the DRINKING WATER STANDARDS 2 YES 100.0% 100.0% ACHIEVED ACHIEVED A A-B Waterloo B Gear Island A1

FRESH WATER QUALITY: % of sites compliant Overflows and blockages DISCHARGE EVENTS FROM TREATMENT PLANTS Target: 90% of all freshwater sites have a rolling 12 month Target: Nil non-consented overflow from treatment plants remain a challenge median < or = 1000cfu/100ml3

HCC WCC PCC HCC TargetWCC PCC Target We managed around 611 incidents this quarter (up from100% 100% 2525 433 in the same quarter last year) covering blockages, Consented: 100% Consented:Non-consented:Non-consented: 100% S Seaview S Seaview 80% 20 S Seaview S Seaview overflows, leaks and faults. 80% 20 S Porirua S Porirua S Porirua S S Western S Western Porirua S Western S No98% enforcement orders, infringement notices, abatement 60% S Moa Point S Moa-Point Western 98% 60% 15 S Moa Point S Moa-Point notices or formal warnings were received. This is largely 15 40% as 96%a result of proactive communication and reporting 10 40% 96% 10 to Greater Wellington Regional Council rather than an 20% HCC WCC PCC UHCC Target 5 improvement94% in the frequency and quality of discharges20% 94% to the receiving environment. We continue to work closely 0% HCC WCC PCC UHCC Target 5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0 92% with GWRC to address known issues in our infrastructure0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 % of Beach Open during bathing season Q1 Q2 Q3 15/16 Q4 Q1 Q2 16/17Q3 Q4 systems and we are seeing good progress. 0 92% 15/16 16/17 Current Result Current Result Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

% of Beach Open during bathing season 90% 15/16 16/17 We see communityQ2 educationQ3 as an importantQ2 part ofQ3 HCC 87% S PCC 67% S 15/16 16/17 2015/16 2016/17 Current Result Current Result 90% improving network performance as well. This is because UHCC 90% WCC 96% Q2 behaviourQ3 such as flushingQ2 wipes andQ3 pouring fat down S S HCC 87% S PCC 67% S 2015/16the sink causes blockages that2016/17 have environmental consequences. UHCC 90% S WCC 96% S

The fat monster that lives in your FLOOD EVENTS REDUCE (this is not updated for 16/17 result yet) WATER RESOURCES PRESERVED FOR FUTURE GENERATIONS pipes has been developed to remind Cumulative number of habitable floors flooded per 1,000 connections (rolling 12 months) Measure of awareness of conservation work and change in behaviour Water reticulation unplanned supply cuts per 1000 connections people not to pour fats down the sink LAST YEAR THIS YEAR Latest Previous Previous 5 FLOOD EVENTS REDUCE (this is not updated for 16/17 resultMonthly trend yet) WATER RESOURCES PRESERVEDJun-16 FORJun-14 FUTURE GENERATIONSJun-12 4 0.40 and to dispose of them in the rubbish Cumulative number of habitable floors flooded per 1,000 connections (rolling 12 months) Measure of awareness of conservation work and change in behaviour 3 I think I should be conserving Water reticulation unplanned supply cuts per 1000 connections ZERO 0.37 0.20 2instead. Sr more water than I’m currently 70% 68% 68% HCCPer 1,000 connections - CUMULATIVELAST YEAR THIS YEAR Latest Previous Previous 1 0.00 doing 5 Monthly trend Jun-16 Jun-14 Jun-12 0.40 2013-14 2014-15 4 Stormwater Pipeline blockages per km of pipeline 0.02 3 0.6 I think I should be conserving ZERO 0.37ZERO ZERO 0.20 0.01 I have the information S g moreI need water to be than able I’m to conserve currently 2 0.4 UHCCPer 1,000 connections - CUMULATIVESr 69%70% 73% 68% 59% 68% Your public water company.HCCPer 1,000 connections - CUMULATIVE 0.00 1 6 0.00 moredoing water 0.2 0.40 2013-14 2014-15 Stormwater Pipeline blockages per km of pipeline 0.02 ZERO 0.28 0.20 0.6 Wastewater reticulation pipeline blockages per km Sr I generally make a positive PCCPer 1,000 connections - CUMULATIVEZERO ZERO 0.01 I have the information S g 0.00 effort to conserve water 51% 48% 33% 1.5 UHCCPer 1,000 connections - CUMULATIVE I need to be able to conserve 69% 73% 59% 0.4 2013-14 2014-15 0.00 1.00 more water 1.0 0.2 0.40 0.07 0.91 0.50 0.5 Sr WCCPer 1,000 connections - CUMULATIVE 0.20 ZERO 0.28 Sr0.00 Wastewater reticulation pipeline blockages per km 2013-14 I generally make a positive HCC WCC UHCC PCC Target PCCPer 1,000 connections - CUMULATIVE 0.00 2014-15 51% 48% 33% 1.5 effort to conserve water 2013-14 2014-15 1.00 1.0 0.07 0.91 Sr0.50 0.5 WCCPer 1,000 connections - CUMULATIVE 0.00 2013-14 HCC WCC UHCC PCC Target 2014-15 1 of 1 Wellington Water Company Result Sheet 15/08/17

JUNE 2015 REPORT Results Sheet - Trend Analysis of Wellington Water Outcomes Not quite on Meets target Not on target Data N/A target This report provides further detail and analysis of the outcomes section of the Company Result Sheet

SAFE TO DRINK - water delivered to the taps of the regions ' houses and business that satisfies consumers and meets or exceeds our clients' expectations

1.1 1.2 Council Gradings Current Target …and…we maintain our WATER SUPPLY B A Wainui A1 TeMarua A1 Do we have safe ü …we know this because we comply with part four of ü ü GRADING from the Ministry of Health the DRINKING WATER STANDARDS water? YES 100.0% 100.0% ACHIEVED ACHIEVED A A-B Waterloo B Gear Island A1

HCC WCC PCC Target 100% 25

100% Consented: Non-consented: S S 80% 20 Seaview Seaview S Porirua S Porirua S Western S Western 98% 60% S Moa Point S Moa-Point 15

40% 96% 10

20% 94% HCC WCC PCC UHCC Target 5 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0 92% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

% of Beach Open during bathing season 15/16 16/17 15/16 16/17 Current Result Current Result 90% Q2 Q3 Q2 Q3 THREE WATERS REPORT AND OUTLOOK 1 APRIL – 30 JUNE 2017 HCC 87% S PCC 67% S Resilient networks support our economy 2015/16 2016/17 Outcome UHCC 90% S WCC 96% S 3 Ministers in hunt for community water supply THREE-WATERS NETWORK AVAILABLE TO CUSTOMERS FLOOD EVENTS REDUCE (this is not updated for 16/17 result yet) WATER RESOURCES PRESERVED FOR FUTURE GENERATIONS Rolling 12 months of data In June, Local Government Minister Anne Cumulative number of habitable floors flooded per 1,000 connections (rolling 12 months) Measure of awareness of conservation work and change in behaviour Tolley and Civil Defence Minister Nathan Guy Water reticulation unplanned supply cuts per 1000 connections announced the Government’s $6 million co- LAST YEAR THIS YEAR Latest Previous Previous funding of a programme to establish emergency 5 Monthly trend Jun-16 Jun-14 Jun-12 water supplies throughout the region. 4 0.40 3 I think I should be conserving The funding will help establish 22 new ZERO 0.37 0.20 2 Sr more water than I’m currently 70% 68% 68% community water stations throughout the four HCCPer 1,000 connections - CUMULATIVE 1 0.00 doing cities. These new community water stations 2013-14 2014-15 will consist of either a local bore or stream- Stormwater Pipeline blockages per km of pipeline 0.02 fed emergency water. More than 300 water 0.6 ZERO ZERO 0.01 I have the information bladders will also be purchased for storage and S g I need to be able to conserve 0.4 UHCCPer 1,000 connections - CUMULATIVE 69% 73% 59% supply and at water stations that can be set up 0.00 more water within communities as needed. 0.2 0.40 Bores have been drilled at Newtown, Kenepuru ZERO 0.28 0.20 Hospital, Johnsonville and Nairnville Park in Wastewater reticulation pipeline blockages per km Sr I generally make a positive Wellington, and Postgate Park in Porirua. All PCCPer 1,000 connections - CUMULATIVE 0.00 51% 48% 33% 1.5 effort to conserve water told, it’s planned that there will be 11 bores, and 2013-14 2014-15 1.00 11 streams tapped for emergency water supply. 1.0 The sites that have sufficient water will be 0.07 0.91 Sr0.50 further tested for quantity and quality of the 0.5 WCCPer 1,000 connections - CUMULATIVE 0.00 water before the bores are fully developed. Ministers Anne Tolley and Nathan Guy inspect a 200L 2013-14 HCC WCC UHCC PCC Target 2014-15 emergency water storage tank at at the Truscott Avenue, Johnsonville site where an emergency well was being drilled.

Your public water company. 7 Service Goal performance reporting Reporting to: Jun-17 Customer YTD Quarterly Status Service Goal Aspirational Direction Outcome Status Q1 Q2 Q3 Q4

We provide safe and healthy drinking water Stay the same S S S S S THREE WATERS REPORT AND OUTLOOK 1 APRIL – 30 JUNE 2017 We operate and manage assets that are safe for our suppliers, Resilient networks support ourStay economythe same S S S S Outcome people and customers S

We provide an appropriate region-wide fire-fighting water supply 3 Stay the same S S S S to maintain public safety S Safe and Healthy Water Healthy and Safe

We minimise public health risks associated with wastewater and Stay the same S S S S Lookingstormwater for drinking water under the harbourS floor All four city councils and the Greater Wellington Exploratory drilling is now under way beneath the Customer YTD Quarterly Status Service Goal Aspirational Direction RegionalOutcome Council are investing significantly in enhancing harbour floor to see if we canStatus accessQ1 a new Q2 water Q3 supply Q4 water supply resilience in urban Wellington, so the from the Waiwhetū Aquifer. The Waiwhetū Aquifer is region can get back on its feet as quickly as possible believed to extend from Lower Hutt to as far as the We manage the use of resources in a sustainable way Improve S S S S after a major event such as an earthquake. harbour entrance, and if successful,S these harbour bores could provide up to 30 million litres of water a day, or A range of projects is under way that will reduce the around 20 per cent of the city's needs. amount of time it Wetakes will toenhance restore the bulkhealth water of our waterwayssupply and the ocean Improve S S S S S from as much as 100 days to 30 days, in all parts of the Weather permitting, the exploratory bores are due to region. be completed in August 2017, after which we’ll carry out We influence people’s behaviour so they are respectful of the tests of waterImprove quality, quantityS and flow.S S S S To help with this, asenvironment well as major bulk water projects prioritised for the next five to 10 years to build storage This exploratory bore project also provides an important capacity, environment the of Respectful we needWe to ensurefind anthe alternativeimpact of water emergency services is for the good ofopportunity the for NIWA and GNS Science to gather Improve S S S S S water supply for Wellington.natural and built environment* data about the seafloor and aquifer so we can better understand this water source and environment. Customer YTD Quarterly Status Service Goal Aspirational Direction Outcome Status YTD Q1Q1 Q2 Q2 Q3 Q3 Q4 Q4

We minimise the impact of flooding on people’s lives and Improve S S S S proactively plan for the impacts of climate change S

We provide three water networks that are resilient to shocks and Improve S S S S stresses S

We plan to meet future growth and manage demand* Improve S S S S S

We provide reliable services to customers Stay the same S S S S S The barge and drilling rig on the move in Wellington Harbour Resilient networks support our economy* our support networks Resilient

* Minor wording changes made to better reflect the intent of the Outcome and Goal. SOI version still being tracked and reported against. 8 Your public water company. 180 report Number of SLT Members in Site Observations/Interactions 160 Wellington Water Staff 169:1 8 7 7 7 140 6

5 5 every 1 reactive 5 4 4 120 4 3 3 3 2 100 1 0 The Wellington Regional Water Sector (all Q1 15/16 Q2 15/16 Q3 15/16 Q4 15/16 Q1 16/17 Q2 16/17 Q3 16/17 Q4 16/17 80 staff, consultants and contractors) 63:1 We measure SLT interactions as they're a powerful way to demonstrate 2016/17 Target 20:1 (red line) commitment to safety, and to learn any underlying matters onsite. The SLT Number of proactive reports to 60 regularly engage with contractors where H&S is discussed. All members completed their interactions this quarter, and continue to keep up this level 40 of performance. Wellington Water Contractors 52:1 20 Staff H&S Engagement Score

81% (2015) 0 85% (2016) Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 Our level of staff engagement under H&S has improved, due to increased staff Wellington Water: Health and safety THREE WATERS REPORT AND OUTLOOK 1 APRIL – 30 JUNE 2017 participation, better systems, resources and greater communication by our H&S reps. ------H&S Representative Competency Finally, our Wellness Strategy has now been launched Focus on safety TOTAL RECORDABLE INJURY FREQUENCY RATE Lost Time Injury Frequency Rate that focuses on social, mental and physical wellness. This Level 1 Certified 👤👤👤👤 Note: Total Recordable Injuries include medical treatment, hospitalisation and fatality injuries. quarter will focus on men’s health, cultural based lunches Level 2 Certified 👤👤👤👤 Note: LTI rate is based on rolling 12 months data per 200,000 hours worked. 9 Consultant Contractor Wellingtonfor Water newIndustry crewBenchmark The TRI rate is based on rolling 12 months data per 200,000 hours worked. and mental health (specifically around personal resilience). Level 3 Certified 👤👤👤👤👤👤👤👤👤👤 8.4 8 10 Level 4 Certified 👤👤👤👤 This quarter we welcomed the transfer of Consultant Contractor Wellington Water Industry Benchmark Event reporting increases 7 the Porirua Works Unit (PCC) into Wellington We have 11 H&S representatives. Each level represents two days of 6 Water. Health and safety has been a key It’s encouraging that our employee, contractors and coursework. Their purpose is to represent and promote the H&S interest of consultants’ safety reporting is increasing again and that 5 focus of their inductions to ensure that we are staff to the employer's attention. A fully NZQA Level 4 certified representative 5.6 there is an overall downward trend in the number of has the full skillset to make the greatest H&S impact for their teams. We aim 4 aligned from a procedural and cultural view. We have held a number of safety seminars, 5 injuries being reported. to have all our representative to be Level 4 certified by end of 2017. 3 ------training exercises and tool box chats to help 2 The trend in the proactive versus reactive ratio graph is Safety Star Rating Scheme Pilot Self-Trial us learn from one another. Overall we are rising as we keep advancing a safety culture that openly 1 very pleased with the health and safety skills,0.6 “speaks up”. Not only are negative events being reported, We self-measured against all 15 Standards in the WorksafeNZ/ACC pilot of the 0 experience and attitude that the PCC works Safety Star Rating Scheme and identified two areas for immediate 0.6 but many safety success stories or observations are being Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16unitJan brings 17 Feb to 17WellingtonMar 17 AprWater. 17 May 17 Jun 17 0 improvement - H&S focussed training; and H&S vision and goals. We're Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 reported as well. In order to sustain this good momentum, currently in the midst of crafting our vision with multiple parties, and the This trend has stayed relatively the same. There wereWellington no lost-time Water injuries and with our our supply contractors chain this remains we have established new goals and measures for training schedules are being developed for 2017/2018. quarter, but we had an employee twist their anklecommitted near the office to while the ConstructSafe parking his motorcycle. certification This was This trend is slowly reducing each successive quarter. We'll continue to reinforce good practices, and improving our performance, critical risks, capability, and minor and not serious, and he took some time to seethat a doctor,aims to and demonstrate work from home. a high competence raise awareness of risk mitigations to prevent injuries. wellness for the 2017/18 financial year. level around work site risk awareness and LEARNING EVENTS (PROACTIVE) VS INJURY EVENTS In regards to specific incidents, we had one employee 180 Number of Speeding Eventssafety by behaviors.Wellington Our Water intention Vehicles is that by Number(REACTIVE) of Injuries REPORTS Requiring - ROLLING First Aid 12 MONTHSand Medical RATIO Treatment requiring medical treatment this quarter for twisting their 10 Number of Staff Wellness Initiatives report December 2017, access to all work sites will 16010 Speeding between 10-19 km/hr Speeding over 20km/hrNumber of SLT Members inRatio Site Observations/Interactions per 1000km First Aid Medical Treatment ankle while they were parking their motorcycle. It was Wellington Water Staff 169:1 800 8 7 7 8 June Wellbeing Month only be granted upon certification being 140 68 7 Note: Includes contractors and Wellington Water employees not a serious incident, and they were able to flexibly work 8 6

5 5 every 1 reactive 44 7 presented. We’ve committed5 that all staff who 8 65 4 4 120 from home while recovering. 600 40 4 3 3 6 regularly visit sites will3 be certified, as20 well as 6 2 29 5 100 our supply chain (contractors1 32 and25 consultants). 6 In addition, we had two near-miss incidents that we 19 0 The Wellington Regional Water Sector (all 400 Q1 15/16 Q2 15/16 Q3 15/16 Q4 15/16 Q1 16/17 Q2 16/17 Q3 16/17 Q4 16/17 4 80 683 26 20 15 staff, consultants and contractors) 63:1 deemed were significant. One involved a pillar dropping 4 617 We measure SLT interactions as they're a powerful way to demonstrate 3 2016/17 Target 20:1 (red line)

558 Our Health and Safety vision refresh with Number of proactive reports to 515 commitment to safety, and to learn any underlying507 matters onsite. The SLT 60 4 420 unexpectedly into a small pit during underpinning work of 200 342 regularly368 engage with contractors387 where H&S is discussed. All members 2 our staff and supplycompleted chain their interactionscontinues this quarter, andto continue to keep up this level 40

Number of initiatives 266 271 an old house; and the other involved a loader tipping over 2 247 of performance. 1 progress with measures being agreed for each of Number incidents 2 Wellington Water Contractors 52:1 0 0 20 on a steep road. We have worked closely with the people objectives area, specifically StaffWellness, H&S Engagement Improving Score 0 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 1781% (2015) May 17 Jun 17 0 involved to understand the cause, and improvement Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 Performance, Critical Risk and Capability.85% (2016) 0 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 Our level of staff engagement under H&S has improved, due to increased staff recommendations will be discussed with our supply chain. The number of excessive speeding events is on the increase, and we willparticipation, work withbetter systems, managers resources and greaterand communication H&S by our Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 H&S reps. This measures the number of new intiatives that improve staff wellness in representatives of people who speed often. We have set new targets to------have zero high-range speeding health promotion, diversity and inclusion, life/work management, and H&S Representative Competency events, and reduce low-range speeding events by 10% each quarter. We will schedule regular general Lost Time Injury Frequency Rate Level 1 Certified 👤👤👤👤 Both trends in first aid cases and medical treatments have reduced this quarter. We'll continue to reinforce community events or contributions. We have launched a new Wellness Level 2 Certified 👤👤👤👤 Note: LTI rate is based on rolling 12 months data per 200,000 hours worked. awareness talks, engage the managers, and work with the H&S committees to reduce the speeding. 9 Consultant Contractor Wellington Water Industry Benchmark Level 3 Certified 👤👤👤👤👤👤👤👤👤👤 8.4 8 that their safety comes first, be vigilant, plan times carefully,10 not rush, or overly multi-task. Strategy to focus on our mental, social and physical wellbeing. Level 4 Certified 👤👤👤👤 Consultant Contractor Wellington Water Industry Benchmark 7 Your public water company. 9 We have 11 H&S representatives. Each level represents two days of 6 coursework. Their purpose is to represent and promote the H&S interest of staff to the employer's attention. A fully NZQA Level 4 certified representative 5 5.6 has the full skillset to make the greatest H&S impact for their teams. We aim 4 5 to have all our representative to be Level 4 certified by end of 2017. 3 ------2 Safety Star Rating Scheme Pilot Self-Trial 1 We self-measured against all 15 Standards in the WorksafeNZ/ACC pilot of the 0.6 0 0.6 Safety Star Rating Scheme and identified two areas for immediate Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 0 improvement - H&S focussed training; and H&S vision and goals. We're Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 currently in the midst of crafting our vision with multiple parties, and the This trend has stayed relatively the same. There were no lost-time injuries with our contractors this training schedules are being developed for 2017/2018. quarter, but we had an employee twist their ankle near the office while parking his motorcycle. This was This trend is slowly reducing each successive quarter. We'll continue to reinforce good practices, and minor and not serious, and he took some time to see a doctor, and work from home. raise awareness of risk mitigations to prevent injuries.

Number of Staff Wellness Initiatives Number of Speeding Events by Wellington Water Vehicles Number of Injuries Requiring First Aid and Medical Treatment 10 10 Speeding between 10-19 km/hr Speeding over 20km/hr Ratio per 1000km First Aid Medical Treatment June Wellbeing Month 800 8 Note: Includes contractors and Wellington Water employees 8 68 44 7 8 65 600 40 20 6 6 29 5 32 25 6 400 19 4 683 26 15 4 617 20 3 558 515 507 4 420 200 342 368 387 2 Number of initiatives 2 266 247 271 1 Number of of Number incidents 2 0 0 0 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 0 The number of excessive speeding events is on the increase, and we will work with managers and H&S Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 This measures the number of new intiatives that improve staff wellness in representatives of people who speed often. We have set new targets to have zero high-range speeding health promotion, diversity and inclusion, life/work management, and events, and reduce low-range speeding events by 10% each quarter. We will schedule regular general Both trends in first aid cases and medical treatments have reduced this quarter. We'll continue to reinforce community events or contributions. We have launched a new Wellness awareness talks, engage the managers, and work with the H&S committees to reduce the speeding. Strategy to focus on our mental, social and physical wellbeing. that their safety comes first, be vigilant, plan times carefully, not rush, or overly multi-task. Wellington Water: Value for money THREE WATERS REPORT AND OUTLOOK 1 APRIL – 30 JUNE 2017 Standardising vehicle fleet saves $120,000 Demonstrating value for money When Wellington Water was formed, we inherited two different vehicle fleet set-ups. One fleet was Our priority is to deliver value through smart investment; delivering the right project at the owned and other had lease agreements. Some of the vehicles in the owned fleet were very old. The right time means we will deliver the greatest value to our clients. vehicles in both fleets were different in model, age and condition and there were issues with servicing Included in ongoing work to ensure we're investing where, when and how it counts is: and maintenance requirements. • w ork on the Regional Service plan, which is the plan to guide investment in network Using the All-of-Government contract, we negotiated savings of approximately $80,000 on the performance over the next 30 years purchase of six new 4WD utes. The money we saved was redirected to the purchase of four new vehicles which previously had no funding. • building water and wastewater resilience, which means networks that are more resistant to shocks, and communities that can get back to work more quickly in the event of a major We also renegotiated the lease earthquake renewal agreement. This resulted in savings of approximately • ca tchment-based approaches to improve fresh and coastal water quality over time $40,000 per year. • c ommunity education, to help inform everyone of the actions they can take that will reduce The standardisation of our vehicle network operating and investment costs fleet not only saved money, but • r egionalising policies and regulations, to reduce the cost and complexity of doing business also means that the vehicle fleet when it comes to the three waters is easier to manage and maintain and the vehicles are fit for We also know that value comes from innovation in the way we do things. We created a value purpose. for money framework that allows Wellington Water staff, consultants and contractors to register good ideas which we collectively instigate and then implement if appropriate. From a sample of these, an independent reviewer concluded that they demonstrated progress towards our desired culture of eliminating waste, continuous improvement and innovation, and that the structure of our value for money financial model was sound in terms of the accuracy of its calculations. Fifteen initiatives introduced over the past year were found to have provided $569,000 in net gains in the 2016-17 financial year and $270,000 in ongoing net gains, or $839,000 total whole One of the new utes that contributed to fleet cost savings of $120,000 of life gains.

10 Your public water company. Wellington Water: Programme delivery THREE WATERS REPORT AND OUTLOOK 1 APRIL – 30 JUNE 2017

The last quarter of the financial year is always a busy time for our capital works programme as we look to complete work scheduled for All Council Capex Spend YTD the current financial year and begin procuring work for the upcoming year. Procuring work 80 early benefits us, our suppliers, and ultimately delivers value for our customers, and fits in with our aim to move to a rolling three-year 70 works programme. In addition to our traditional programme outcomes, our 2017/18 programme has some 60 additional outcomes to focus on: water quality and community infrastructure resilience. We have been busy planning these upcoming 50 work streams, through our forward design Total Actual programme and fast-track development 40 programme. Total Budget We had 290 planned projects in our capital $ Millions expenditure programme this year, worth an 30 Prior Year 2015/16 estimated $69 million. The 2016/17 programme was targeted at pipeline renewals and upgrades ($38 million), structural strengthening 20 and other pump station upgrades and renewals works ($11 million) and bulk water work ($5 million). We managed to get through 90% of our 10 programme this year, which was well up on last year, and believe it or not experienced fewer wet weather delays than usual. Jan Oct Apr Feb July Dec Aug Nov Mar May Sept June

Your public water company. 11 Wellington Water: Stakeholder engagement THREE WATERS REPORT AND OUTLOOK 1 APRIL – 30 JUNE 2017 Community input guides decision on treatment plant bypass options Over the last few months, we’ve been consulting with Lower Hutt residents, iwi and other stakeholders over the re-consenting of the Seaview Wastewater Treatment Plant bypass. Under normal conditions, the treated wastewater from the Hutt Valley is pumped 18km from Seaview to discharge into the Cook Strait at Bluff Point. During wet weather when the capacity of the main outfall pipeline is exceeded, some treated wastewater is bypassed to the Waiwhetu Stream. This happens about five times a year during storm events. This bypass is also used when maintenance work on the pipeline is needed, such as when a rubber pipe ring needed repair in April this year. As part of the re-consenting process, a number of potential options for where this treated wastewater is discharged have been explored. The options ranged from “status quo” (discharging through existing pipeline into the Waiwhetu Stream) to building a new discharge pipeline 600 metres off-shore from the Hutt River mouth. This has been a tricky subject to communicate and get consensus on. The short-listed potential options are all very expensive and many are well beyond the current funding in Hutt City Council’s Long Term Plan. To give us guidance on what the community thought of the short-listed options, we engaged with the consultation group that was set up from the last consent and local Iwi. As well, feedback from the community was received through Hutt City Council’s Annual Plan consultation in addition to a phone survey of 300 residents. This ensured that a cross-section of customer views were obtained. While the first choice responses from the community ranged across several options, their feedback gave us a good steer on which options were the least preferred. Our recommendation for the new bypass resource consent is for the “best practicable A representation of the different bypass options. option”. This involves reducing the wet weather overflows through building more storage at the wastewater treatment plant as well as extending the current outfall pipe so that it is moved out of the Waiwhetu Stream and just past the confluence with the Hutt River.

12 Your public water company. Wellington Water: Stakeholder engagement THREE WATERS REPORT AND OUTLOOK 1 APRIL – 30 JUNE 2017 On the national stage Looking for water heroes The Havelock North Inquiry Stage 1 report found significant collaboration failings between Getting people to think about how the Regional Council, District Council and the Drinking Water Assessors. Stage 2 of the they’d cope without a working water Inquiry is looking at the possibility of formalising `joint working groups' to increase and wastewater network after a collaboration. As the Inquiry moves to stage two (due to report in December 2017) major earthquake was the aim of our we expect to see increased likelihood of mandatory treatment, changes in capability recent resilience campaign. Research expectations for water staff and changes to regulations perhaps relating to drinking water has showed that most people don’t standards and the role of Drinking Water Assessors. have enough emergency water stored to last more than a day or Stage 2 of the Inquiry also asks specific nationwide structural questions including - should so. Our aim is to get people to store there be a dedicated drinking water supply entity or entities and what can be learned enough water for their family or from existing water models like Watercare. The Water New Zealand Inquiry submission flatmates for seven days as well as commented on the fragmented and small size of water departments across the country having a plan for what to do with noting that it leads to a lack of consistent approach between local authorities. their wastewater. Off the back of the Havelock North Inquiry we have seen more interest in the water sector Working closely with WREMO, we from central Government. We have seen the launch of the Government's three waters used humour to get people thinking review to determine whether the current regime is `fit for purpose' and develop long-term about the need to be prepared improvements to the three waters system. The review is being led by the Minister for (without scaring them off), and then Local Government and will be completed mid next year. It will provide an opportunity to directed them to how to get prepared develop a solid evidence base on the type of challenges and opportunities in the sector, the once we had their attention. development of options for change, and a basis for more ambitious reforms. Our imagery was all about being The review responds to concerns about the performance and vulnerabilities of the current a “hero”. For most households and system and a lack of central government oversight. It's seeking increased collaboration businesses, there’s usually one between central and local government and will focus on financial incentives, asset person who takes it upon themselves management practices and compliance and monitoring. We are on an informal reference to sort things out. These people group being coordinated by Water New Zealand to provide input to the review being led by were the heroes of our campaign – the Department of Internal Affairs. they’re the ones looking after their GET YOUR WATER STORAGE SORTED NOW FOR YOUR FAMILY In the days following a large earthquake, will you have enough water for your family? We are also keeping across the Local Government Act Amendment Bill # 2 as it moves family, flatmates or colleagues. We’re And a plan for what to do with your ones and twos? empowering these individuals to take Be a Water Hero. Get sorted now. through the House and the Local Government New Zealand Water Project 2050. Go to getprepared.org.nz/water to find out how. action.

Your public water company. 13