Wellington Water Seeks Funding Boost for Improved Contractor Oversight
In a recent meeting, Wellington Water’s chief executive, Pat Dougherty, made a compelling case for additional funding of $37.5 million over the next three years from the city council. The purpose of this funding is to address the pressing issues of leaking pipes, enhance contractor oversight, and implement structural changes within the organization.
During the meeting, Dougherty emphasized the urgent need for this funding and urged the council to expedite their decision-making process. He outlined a breakdown of the costs, indicating that the funds would be allocated towards restructuring the organization, transitioning 30 permanent contractors and consultants to in-house staff, and upgrading their IT systems.
One of the key points raised by Dougherty was the inefficiency of the current decision-making process and the organization’s lack of clarity regarding its structure. He highlighted the overreliance on external contractors and consultants as a significant challenge, emphasizing the need to refocus on delivering value for money to customers.
Dougherty expressed a shift in philosophy, advocating for a more commercially driven approach that prioritizes continuity of knowledge and experience, as well as maximizing the value derived from investments. He acknowledged the feedback from councils across the region, pointing out that Wellington Water had been criticized for its heavy reliance on contractors.
Apologizing to the council, Dougherty admitted that the organization had been slow to address this issue and emphasized the importance of rebuilding trust with the councils and ensuring cost-effective delivery of services. He stressed the need for enhanced oversight and management of contracts to achieve better outcomes.
As part of its funding proposal, Wellington Water is seeking an additional $5 million for its operating budget to address leak control and prevent wastewater contamination in the harbor. They are also requesting an extra $25 million in their capital budget to manage identified risks effectively.
Furthermore, Wellington Water has proposed a $430,000 increase in its Management Advisory Services budget to recruit key staff members who will oversee contracts and implement robust controls. A cost audit has been initiated to compare Wellington Water’s expenditures with those of similar water utilities in different regions, with the findings set to be presented to the shareholding councils in March.
In closing, Dougherty urged the Wellington City Council to expedite the reform process, emphasizing that the funding request was not merely for pipe replacement but to ensure the continued functionality of critical assets. Wellington Water has already replaced 24km of pipes in the previous financial year and aims to replace an additional 9km this year.
The council is expected to make a decision on the funding proposal next week, with the hope of implementing necessary changes to improve contractor oversight and enhance service delivery for the benefit of Wellington residents.