2010 ANNUAL REPORT - Watercare

WATERCARE SERVICES LIMITED ANNUAL REPORT 2010Overview of Company ActivitiesThe Watercare-specific provisions of the Local Government Act 1974 require the company to “manage its business efficiently with a view tomaintaining prices for water and wastewater services at the minimum levels consistent with the effective conduct of that business and themaintenance of the long-term integrity of its assets”. A description and map of the water and wastewater networks are shown on page 1.WaterWastewaterAnnual quantities 139,164,000,000 litres 111,378,000,000 litresDaily average quantities 381,270,000 litres 283,954,000 litresPopulation served 1,318,000 985,000Total Water WastewaterAnnual turnover ($000) 198,116 75,679 122,437Asset value ($000) 2,470,790 1,391,228 1,079,562Shareholders and CustomersWatercare’s OwnersShare-Holding %Customers water wastewaterAuckland City Council 41.6 Metrowater (wholly owned by Auckland City Council) Manukau City Council 25.1 Manukau Water (wholly owned by Manukau City Council) Waitakere City Council 16.7 Waitakere City Council North Shore City Council 11.5 North Shore City Council –Papakura District Council 3.7 United Water (under a franchise agreement with Papakura District Council) Rodney District Council 1.4 Rodney District Council –Responsiveness to StakeholdersWatercare encourages the exchange of information with its many stakeholders througha wide range of forums. The company has regular meetings with both its customersand its shareholders, has established community liaison groups associated with itsprojects and operations, and has Maori, environmental and customer advisory groupsto review and advise on its activities. Other stakeholders with whom the companyengages are employees, contractors, suppliers, financiers and the wider public.The company interacts with other groups including regulatory and legislative bodiesin the course of its operations and projects.The company, as part of preparation to be the integrated water and wastewatercompany for Auckland, has recently established a Consumer Advisory Group toprovide independent advise on the commitment to treat all consumers in a fair andequitable manner.Watercare continues to evolve the manner in which it reports its activities in responseto feedback from its stakeholders. The stakeholder materiality matrix, published tothe right, is Watercare’s summary of issues and their relative importance to some keystakeholder groups. This matrix reflects Watercare’s understanding of the perspectivesoffered by stakeholders.Stakeholder Materiality MatrixKey: very importantimportantless importantIssuesDelivery of high-quality waterWater conservation and energy efficiencyClimate change and carbon managementMinimisation of environmental effectsPricing of servicesIntegrated regional planningTalent recruitment and retentionStakeholder groupShareholdersCustomersWider publicEmployeesSuppliers and contractorsRegulatorsEnvironmental groupsMaori groupsFinanciersCOMPANY OVERVIEWWeblinksFigures:Water and wastewater facts Fig. 1Shareholding Fig. 2Customers Fig. 3Financial overview Fig. 4Taxation Fig. 5Local rates Fig. 6Population and water sales Fig. 7For this year’s report, Watercare has:ÌÌ Scaled back some reporting as staff focus on Project One; the project to integrate water and wastewater servicesacross the region into Watercare. This meant the company did not seek an independent verification report orformal LNO and customer feedback. Similarly, no WSAA Asset Management benchmarking was undertaken.ÌÌ Incorporated information on integration of the Auckland regional water and wastewater services into the reportwhere relevant.This is Watercare’s last Annual Report as a wholesale company. Next year’s report will examine performanceand results of the integrated company. Feedback on this report, ideas or suggestions for future reports arewelcomed either online at www.watercare.co.nz or by emailing Brent Evans, Business Planning Manager,at bevans@water.co.nz.4