Wellington City Council chief executive Barbara McKerrow. Photo / Mark Mitchell
Wellington City Council chief executive Barbara McKerrow. Photo / Mark Mitchell
An independent report into Wellington Water and Wellington City Council found their relationship was lacking trust and in need of a "fundamental reset".
The disagreements between the two organisations were to such an extent that their management services contract was left unsigned for more than three years.
"There are difficulties and niggles occurring at each level and every part of the relationship between the two organisations", the report said.
It found Wellington Water (WW) and senior Wellington City Council (WCC) staff were not meeting regularly. When they did, it was not strategic, instead focusing on detailed and often urgent matters.
WW staff felt the council was not taking the relationship seriously and had "downgraded" it by assigning related responsibilities to lower levels of the council.
Furthermore, there was an "apparent lack of agreement or understanding" on an asset management plan for the city.
As recently as last month, WCC put a Power Point presentation together on the issues titled "Relationship Rapid Improvement Plan".
The report was commissioned in December 2019 by incoming WCC chief executive Barbara McKerrow, who was alerted to issues with the working relationship.
This was prior to the significant infrastructure failures of the ensuing year, including the collapse of a wastewater tunnel under the CBD just before Christmas.
The Herald has obtained a copy of the report, completed in April 2020, under the Local Government Official Information and Meetings Act.
The report identified eight areas for improvement, which the council said it has and will continue to address together with WW.
The report was commissioned prior to the collapse of a wastewater tunnel under the CBD just before Christmas. Photo / Georgina Campbell
McKerrow and WW chief executive Colin Crampton attached a joint statement in the official information response to the Herald.
"The report reflects some historical challenges that have been addressed, the relationship between both organisations is collaborative and constructive and the overall strategic direction and support for staff has been strengthened", they said.
Crampton added: "Wellington Water's staff work closely with their colleagues at Wellington City Council on a daily basis and enjoy productive and positive relationships with them at all levels."
While the situation may have improved now, the findings paint a chequered past.
The report found WWC staff viewed the relationship as contractual and based on service delivery performance.
They wanted WW to be "excellent" at undertaking its core business before the council would trust its advice on a wider level.
Wellington Water chief executive Colin Crampton. Photo / Mark Tantrum
But Crampton and senior staff expected their role would be first and foremost as a trusted adviser to councils on all matters to do with Three Waters management.
These attitudes were on full display in a dispute over a revised management services contract, which was unsigned for three years.
This is despite similar contracts being signed by every other shareholder council in the region.
The council wanted key performance indicators and service levels included in the contract, which was set out in an attached schedule.
But that schedule was completely "struck out" in the copy the independent reviewer received.
It's understood that was done at the request of WW, because it didn't consider such detailed specifications were appropriate for a management services contract.
WW's preference was instead for an outcomes-based agreement.
The report said this not only indicated a fundamental disagreement about respective roles, but also a lack of necessary leadership to resolve the situation.
"It is disappointing that this matter appears to have been placed in a too hard basket for up to three years now!!", the report said.
The contract has since been completed, but the council considers the issue of KPIs a more complex issue and is a "work in progress".
The report found council staff were also frustrated that data being provided by WW, relating to the service levels, was not robust nor in a suitable format for WCC's own reporting.
One 2019 email exchange revealed WW declined to respond to council's information request ahead of an interim audit, because they "really don't have any time to spend on this".
Following the findings, WCC has reported regular meetings now occur at a chief executive and senior executive level.
The council has also appointed a Chief Infrastructure Officer, who is a member of the Executive Leadership Team and is responsible for the working relationship with WW.
WCC has established a special office to undertake further work on Strategic Asset Management.
