Agenda of Audit and Risk Committee - Thursday, 3 October 2024

Audit and Risk Committee Agenda

3 October 2024

MINUTES OF Central Otago District Council
Audit and Risk Committee
HELD IN Ngā Hau e Whā, William Fraser Building, 1 Dunorling Street, Alexandra
AND LIVE STREAMED VIA MICROSOFT TEAMS ON Friday, 7 June 2024 AT 9.31 am

PRESENT: Mr B Robertson (Chair), Cr T Alley, Cr T Paterson

IN ATTENDANCE: Cr S Browne (Observer), L van der Voort (Group Manager - Planning and Infrastructure), S Righarts (Group Manager - Business Support), D Rushbrook (Group Manager - Community Vision), D Scoones (Group Manager - Community Experience), P Keenan (Acting Three Waters Director), N McLeod (Chief Information Officer), G Robinson (Property and Facilities Manager), A Crosbie (Senior Strategy Advisor), A Lines (Risk and Procurement Advisor) H Strydom (Health, Safety and Wellbeing Advisor), W McEnteer (Governance Manager)

1 Apologies

Apology

Committee Resolution

Moved: Robertson

Seconded: Alley

That the apologies received from Cr Gillespie and from His Worship the Mayor be accepted.

Carried

2 Public Forum

There was no public forum.

3 Confirmation of Minutes

Committee Resolution

Moved: Robertson

Seconded: Alley

That the public minutes of the Audit and Risk Committee Meeting held on 8 March 2024 be confirmed as a true and correct record.

Carried

4 Declarations of Interest

Members were reminded of their obligations in respect of declaring any interests. There were no further declarations of interest.

5 Reports

24.2.2 Capex Report on Cromwell Memorial Hall

To provide capex updates on the Cromwell Memorial Hall Project.

After discussion it was agreed that there should be several changes made to future updates:

· A legend on the reports to define what each of the icons represent.

· Comment regarding project management risks.

Committee Resolution

Moved: Robertson

Seconded: Paterson

That the report be received.

Carried

24.2.3 Capex Report for Clyde Street and Water Upgrade

To report updates in relation to Clyde street and water upgrades.

Committee Resolution

Moved: Robertson

Seconded: Paterson

That the report be received.

Carried

24.2.4 Status reports for Cromwell Rising Main and Cromwell Drinking Water Upgrade

To report updates in relation to Cromwell’s drinking water upgrades.

Committee Resolution

Moved: Robertson

Seconded: Paterson

That the report be received.

Carried

Note: With the permission of the meeting, items 24.2.6 and 24.2.13 were moved forward.

24.2.6 Treasury Report

To consider the quarterly treasury report.

After discussion the Committee noted that currently there was non-compliance regarding interest rate cover but recognised that a recent report to Council regarding derivatives and swaps would rectify this. It was also noted that as borrowing had only been recent, it was reflected in the higher interest rate.

Committee Resolution

Moved: Robertson

Seconded: Paterson

That the report be received and notes the mitigations being taken to address the interest rate cover non-compliance.

Carried

24.2.13 Audit NZ and Internal Audit Update

To consider an update on the status of the external and internal audit programme and any outstanding actions for completed internal and external audits.

The external audit document was tabled at the meeting for the Committee’s consideration.

Committee Resolution

Moved: Robertson

Seconded: Alley

That the report be received including the tabled Audit NZ report for year ending June 2023.

Carried

Attachments

1 External Audit Report from Audit NZ

24.2.5 Policy and Strategy Register

To consider the updated Policy and Strategy Register

After discussion it was noted that the Health, Safety and Wellbeing Policy should come back to the Audit and Risk Committee. It was also noted that the Committee would like to see a dashboard of emergency management capabilities for Central Otago.

Committee Resolution

Moved: Robertson

Seconded: Alley

That the report be received.

Carried

24.2.7 Updates to Expenditure Policies

To consider updates to the Sensitive Expenditure, Travel, and Credit Card Policies.

After discussion it was agreed that in the Sensitive Expenditure Policy (p.66 of the agenda) to change the word famils to familiarisations as some people may not understand the jargon.

Committee Resolution

Moved: Robertson

Seconded: Paterson

That the Audit and Risk Committee

A. Receives the report and accepts the level of significance.

B. Recommends to Council the adoption of the revised Sensitive Expenditure, Travel, and Credit Card Policies.

Carried

24.2.8 ICT Service Provider Management Policy

To consider the new Information and Communication Technology (ICT) Service Provider Management Policy.

After discussion it was noted that there was no definition of a contractor in the policy and that this should be added.

Committee Resolution

Moved: Robertson

Seconded: Alley

That the report be received.

Carried

24.2.9 Health, Safety and Wellbeing Report

To provide the Audit & Risk Committee with an update on the health, safety and wellbeing performance of the organisation.

Committee Resolution

Moved: Paterson

Seconded: Alley

That the report be received.

Carried

6 Chair's Report

24.2.10 Chair's Report

To consider the Chair’s report.

The Chair noted the general risks in the local government sector were heightened at the moment. He also noted that it would be preferable to get a lot of the work for the Long-term Plan done in 2024.

Committee Resolution

Moved: Robertson

Seconded: Paterson

That the report be received.

Carried

7 Members' Reports

24.2.11 Members' Reports

Members had nothing to report.

8 Status Reports

24.2.12 June 2024 Governance Report

To report on items of general interest and the current status report updates.

Committee Resolution

Moved: Robertson

Seconded: Alley

That the report be received.

Carried

9 Date of The Next Meeting

The date of the next scheduled meeting is 4 October 2024.

10 Resolution to Exclude the Public

Committee Resolution

Moved: Robertson

Seconded: Paterson

That the public be excluded from the following parts of the proceedings of this meeting.

The general subject matter of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Plain English Reason
Confidential Minutes of Ordinary Committee Meeting	s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) s7(2)(j) - the withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage	Legal professional privilege To enable commercial or industrial negotiations To prevent use of the information for improper gain or advantage
24.2.14 - Cybersecurity, Information and Records Management and Privacy Plans for 2022-2025 Implementation Update	s7(2)(j) - the withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage	To prevent use of the information for improper gain or advantage
24.2.15 - Authentication Policy	s7(2)(a) - the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons	To protect a person's privacy
24.2.16 - Incident Report - Name Changes in Rates	s7(2)(j) - the withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage	To prevent use of the information for improper gain or advantage
24.2.17 - Risk Management Update	s7(2)(j) - the withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage	To prevent use of the information for improper gain or advantage
24.2.18 - Litigation Register	s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege	Legal professional privilege

Carried

The public were excluded at 11.19 am the meeting closed at 12.22 pm.

3 October 2024

24.3.3 Policy and Strategy Register

Doc ID: 1927119

Report Author:	Alix Crosbie, Senior Strategy Advisor
Reviewed and authorised by:	Dylan Rushbrook, Group Manager - Community Vision

1. Purpose

To consider the updated Policy and Strategy Register.

Recommendations

That the report be received.

2. Discussion

Organisation – 86.54%

Both the number and percentage of policies has dropped, from 89.52% as at 17 May 2024 to 86.54% as at 20 September 2024. This meets the audited organisational target of 80%; but falls below the goal set by members of 90%.

The cumulative length of expiry is 4,036 days, the same figure as at 17 May 2024. The longest expired policies are the Roading and Lighting policies which expired in June 2022, with 813 days of expiry each. There is no current target for the cumulative length of expiration.

Several policy documents were updated across the assessment period, including removal of the longest expired policy ‘Collection Development Policy’.

The reduction in performance is attributed to the pressure the organisation is under, with competing legislative priorities; particularly as a result of changing government reform, responding to the financial pressures from the increasing cost of capital goods, the Enhanced Annual Plan, and two-year Long-term Plan.

Long-term Plan

All policies to be renewed as part of the Long-term Plan have been treated as operational and in date. They will be revised as part of the 2025-34 Long-term Plan programme which is scheduled to be formally consulted on in March and April 2025.

Business Support 95.24%

The Annual Report, Organisational Business Plan, Credit Card Policy, Travel Policy, and Sensitive Expenditure Policy have all been updated.

The Financial Reserves Policy expired in June 2024 and has not yet been programmed for renewal. The Vehicle Procurement, Maintenance, and Disposal Policy remains out of date.

The cumulative length of expiry is 406 days.

Community Experience 87.5

The Wilding Conifer Control Policy expired in July 2024. It is on the October Council agenda for renewal.

The cumulative length of expiry is 51 days.

Community Vision – 100%

The Economic Development Strategy was due to expire in May 2024 but was formally extended through resolution 24.9.5. The review is actively underway with workshops held throughout September.

Cumulative length of expiry is 0 days.

Planning and Infrastructure – 79.17%

The Waste Management and Minimisation Plan has been updated.

The Alcohol Bylaw and Psychoactive Substances Policy are on the September agenda; and the Gambling Policy is on the October agenda. Consultation requirements for these policies has them back in date in early 2025.

The Lighting Policy and Roading Policy remain out of date.

The cumulative length of expiry is 2266 days.

People and Culture – 93.33%

The Staff Delegations Manual was updated. The Health Safety and Wellbeing Framework remains out of date, while Council actively recruit a new Health Safety and Wellbeing Advisor.

The cumulative length of expiry is 172 days.

Three Waters – 42.86%

There were no changes in Three Waters. A Water Services Planning and Policy Manager has now been recruited, with responsibilities including updated these documents. This work is programmed to begin in 2025.

The cumulative length of expiry is 1169 days.

3. Attachments

Appendix 1 - Policy and Strategy Register ⇩

3 October 2024

24.3.4 Staff Interests Policy

Doc ID: 1902414

Report Author:	Amelia Lines, Risk and Procurement Manager
Reviewed and authorised by:	Saskia Righarts, Group Manager - Business Support

1. Purpose of Report

To consider the revisions made to the Staff Interests Policy in line with its scheduled review.

Recommendations

That the Audit and Risk Committee

A. Receives the report and accepts the level of significance.

B. Recommends to Council that the revised Staff Interests Policy is approved.

2. Background

The Staff Interests Policy was last reviewed and approved in 2021. The policy details responsibilities of staff in relation to declaring any potential, perceived, or actual conflicts of interest.

3. Discussion

The policy has been reviewed and updates made to ensure it continues to be clear and reflect best practice. Updates made include references to the system ELMO, which is now utilised to deliver the interest declaration and management processes. This system has replaced the need for a manual spreadsheet containing all staff interest declarations.

The policy now reflects the need for conflict of interest declarations to be completed annually.

Additional suggestions to help staff identify conflicts of interest have been added to provide further guidance to staff when completing declarations.

Other general updates have been made to ensure clarity and consistency throughout the policy.

4. Financial Considerations

There are no financial considerations in relation to the approval and adoption of this policy.

5. Options

Option 1 – (Recommended)

The Audit and Risk Committee recommends to Council the adoption of the revised Staff Interests Policy.

Advantages:

· Up to date policy, reflective of current processes will be available to staff.

· Changes requested by this Committee will be incorporated into the policy.

Disadvantages:

· None

Option 2

The Audit and Risk Committee does not recommend to Council the adoption of the revised Staff Interests Policy with changes.

Advantages:

· None

Disadvantages:

· Changes requested by this Committee will be incorporated into the policy.

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision enables democratic local decision making and action by, and on behalf of communities by ensuring the responsibilities of staff in relation to conflicts of interest and acting in the public interest are clearly documented.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes
Considerations as to sustainability, the environment and climate change impacts	There are no implications relating to sustainability, the environment, or climate change.
Risks Analysis	Whilst this policy has strong links to risk management, there are no significant risks associated with the decision to recommend adoption. If for any reason this policy was not recommended for adoption and the review date of December was missed, the current policy would continue to be functional, providing guidance to staff.
Significance, Consultation and Engagement (internal and external)	There are no significance, consultation, or engagement implications relating to this decision.

7. Next Steps

Once approved and adopted, the policy will be made available to all staff. The annual cycle of interest declarations will continue, and all new employees will continue to be required to declare any interests as part of the on-boarding process.

8. Attachments

Appendix 1 - Staff Interests Policy 2024-2027 ⇩

3 October 2024

24.3.5 Health, Safety and Wellbeing Report

Doc ID: 1910224

Report Author:	Hannes Strydom, Health, Safety and Wellbeing Advisor
Reviewed and authorised by:	Louise Fleck, General Manager - People and Culture

1. Purpose

To provide the Audit & Risk Committee with an update on the health, safety and wellbeing performance of the organisation.

Recommendations

That the report be received.

2. Discussion

2.1 Reporting period

This report covers the period 1 May 2024 to 31 July 2024 (‘the reporting period’).

2.2 Health, Safety and Wellbeing Advisor summary

This period, Health, Safety and Wellbeing has been focused on finalising investigations into an incident involving the Animal Control Officer and a member of the public and an investigation of an incident at the Cromwell swim centre where a member of the public reported the incident to WorkSafe.

The number of incidents reported are consistent with previous reporting periods and with no lost time injuries reported. Overall, there has been an improvement in most measures monitored as part of Lead indicators – see under 2.3

ELT completed a joint critical risk observation at the Alexandra swim centre to review controls for hazardous substances. A recommended improvement action was for swim centre staff to investigate the use of ear protection when working in the plant room.

On 9 July 2024 the Cromwell swim centre was visited by a WorkSafe inspector after which an improvement notice was issued. The notice stated that processes in place to manage substances hazardous to health, were ineffective. Recommended actions were to engage with workers to develop and implement processes and to include evidence of hierarchy of controls applied, establishing of health monitoring and evidence of processes to maintain and review controls. CODC was given until 29 August 2024 to implement remedial measures.

Logan Miller from LM Safety has been contracted to carry out the works relating to the improvement notice. An extension of deadline was requested from WorkSafe and approved till 17 October 2024. We are currently on track to meet this deadline. Initial chemical review, including correct identification and segregation between classes has been completed. PPE review of chemicals, with base recommendations being implemented. A standard operating procedures (SOP) review/creation for handling and dosing all types of chemicals is underway. Worker engagement around chemicals and dosing will follow once the revised SOPs are completed.

2.3 Lead Indicator dashboard

Measure:

Reporting of incidents in a timely manner

80% of incidents reported in BWare within 48 hours* (and to manager immediately)

*contractor incidents within 72 hours of notification to CODC

Commentary:

Achieved – 86.9% - this is an improvement from the previous quarter when 69% of incidents were reported in 2 days or less.

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Measure:

Increase in number of near misses being reported each quarter.

Commentary:

Not Achieved – fewer near misses reported this quarter.

There has been an increase in reports of observations which indicate an

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Measure:

Achieve Average Star Rating of 4 – measured quarterly.

Continue to Celebrate and Recognise drivers with 5-star ratings on driver leaderboard.

Commentary:

Achieved - star rating of 4.

There were 3 drivers though who only achieved an average star rating of 2 – this has been followed up with the drivers involved.

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Measure:

Contractor management – prequalification assessments up to date:

90% of prequalification assessments up to date

Commentary:

Achieved – 93 % - this is an improvement from the previous quarter when 89% of pre-qualification was up to date.

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Measure:

Risk Management – completion of quarterly risk reviews.

100% completion rate for quarterly risk reviews for each Activity.

Commentary:

Achieved – 100% - this is an improvement from the previous quarter when 95% of risk reviews were completed.

Hazardous substances critical risk observation - scheduled

Measure:

Critical risk observation by ELT - Observation to take place every six months.

Commentary:

Achieved - This took place in July 2024

2.3 Significant incident summary

There were 61 incidents reported during the reporting period which is a slight increase from the 59 incidents in the previous reporting period.

Notable incidents are further explained at section 2.7

Severity rating	Level 1	Level 2	Level 3	Level 4
Risk consequence rating	Negligible or minor (Business as usual)	Moderate	Major	Extreme
Examples	Non-treatment injury, first aid injury	Medical treatment injuries, near miss that could result in medical treatment, wet rescue	Lost time injuries, high-potential near miss	Fatality, life-altering injuries, or potential for either
No. of incident reports	60	0	1	0

Table 1. Severity rating for all incident reports

2.4 Employee reports

25 reports (41%) affected employees which is slightly less than the previous reporting period (49%).

We have seen an increase in pain and discomfort incidents this quarter with 4 incidents compared to 1 in the previous reporting period. An occupational therapist has reviewed workstations and recommended actions implemented.

Bio-hazard exposure have reduced to 6 incidents compared to 11 incidents in the previous reporting period.

The 2 incidents involving animals refer to dogs being brought into the Alexandra Service Centre by members of the public. During the one incident the dogs bled over the carpet and for the other incident the dogs pooed on the carpet while service centre staff were waiting for the dogs to be uplifted. The Animal Control Officer has made a crate available for dogs to be put in until they can be uplifted.

Most incidents were reported by Aquatics which is similar to previous reporting periods.

There is one notable incident involving a medical treatment injury further explored at 2.7

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Graph 1. Employee incidents and reports by cause: Bio-hazard exposure (6), unscheduled fire evacuation (1), first aid injury (1), driving (1), aggressive behaviour or violence (9), animals (2), unsafe or failed work systems (1), pain and discomfort (4)

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Graph 2. Employee incidents by business area: Aquatics (8), enforcement (1), customer service and libraries (10), planning and infrastructure (1), finance (3), roading (1), solid waste (1)

2.4.1 Employee injuries

Recordable injuries for this reporting period is the same as for previous reporting period.

The first aid injury recorded relates to an employee who is allergic to nuts and who had a reaction to a co-worker consuming nuts in the office. Antihistamine was taken and medical advice sought.

The medical treatment injury relates to an aggressive behaviour and violence incident in Cromwell and is further explored at 2.7

Reporting period	Non-treatment injury	First aid incident (FAI)	Medical treatment incident (MTI)	Restricted duties	Lost time incident (LTI)	Fatality	Total recordable injuries
Aug 23 – Oct 23	3	3	0	0	0	0	6
Nov 23 – Jan 24	3	5	1	0	0	0	9
Feb 24 – April 24	1	0	0	0	1	0	2
May 24 – July 24	0	1	1	0	0	0	2

Table 2. Recordable injuries (employees)

.4.2 Lost time injury frequency rate (LTIFR)

The LTIFR is against a benchmark of 1.95 injuries per 200,000 hours of work. The injury rate has remained relatively stable for this and previous reporting periods. There has been one lost time injury for the reporting period and for the year to date ending 31 July 2024.

The lost time injury in March relates to a swim teacher who was talking to children crouching down on the side of the lap pool. When she stood up, she experienced sudden sharp pain in her hip. She was then unable to walk properly and had a few days off work but has returned to full duties.

Graph 3. Lost time injury frequency rate (rolling 12-month average).

2.5 Public incidents

29 incidents (47%) affected the public which is an increase from the previous reporting period (35%)

The highest cause category was first aid injuries – most of which occurred at aquatic centres where children presented with noose bleeds and injuries that occurred while in the pool when colliding with other swimmers and objects. This increased from 9 in the last reporting period to 13 in this reporting period.

One of the incidents involving property damage relates to a member of the public when attending court (adjacent to Alexandra Service Centre), parked their car in a Council employee parking lot. While away from the car, the car burst into flames and damaged a cord used for charging of electric vehicles. The cause of the car catching fire is unknown. A meeting is being organised with fire wardens to talk through the learnings from this incident and to review evacuation protocols.

Graph 4. Public incidents and reports by cause: Dry rescue (7), property damage (2), first aid injury (13), medical treatment injury (1), near miss (1), wet rescue (1), hazardous substances (1), slip, trip and fall (2), unsafe or failed work system (1)

Graph 5. Public incidents by business area. Aquatics (23), customer services and libraries (2), people and culture (1), water services (1), solid waste (1), roading (1).

2.5.1 Public injuries

The number of total recordable injuries (primarily at pools) is higher than the previous reporting period.

Reporting period	Non-treatment injury	First aid injuries (FAI)	Medical treatment injury (MTI)	Fatality	Total recordable injuries
Aug 23- Oct 23	0	7	0	0	7
Nov 23 – Jan 24	0	16	0	0	16
Feb 24- April 24	0	9	1	0	10
May 24 – July 24	0	13	1	0	14

Table 3. Recordable injuries (public)

2.6 Contractor reports

Council received 7 reports (12%) from contractors which is lower than the previous reporting period (15%).

Most reports are received a month in retrospect at monthly contractor meetings. Notable incidents are normally raised to the council employee who manages the contract.

One of the fire incidents relate to ash that started smoking at the Cromwell transfer station. An investigation found that ash that was in a skip bin should not have been accepted by the transfer station staff. Communications to customers have been to cool ash for 5 days and dampen it before bringing it in to transfer station sites.

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Graph 6. Contractor incidents and reports by cause: Driving (2), fire (2), medical treatment injury (1), property damage (1), slip, trip, fall (1)

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Graph 7. Contractor incidents by business area. Property and Facilities (1), parks and recreation (1), solid waste (5)

2.6.1 Contractor injuries

The recordable incident relates to a contractor who fell of a ladder when doing work at the Roxburgh entertainment centre. The incident has been investigated by the main contractor.

Reporting period	Non-treatment injury	First Aid Injury	Medical treatment injury	Fatality	Total recordable injuries
Aug -Oct 23	0	1	0	0	1
Nov 23 – Jan 24	0	2	0	0	2
Feb 24 – April 24	0	0	0	0	2
May 24 – Aug 24	0	0	1	0	1

Table 4. Recordable injuries (contractor).

2.7 Notable incidents

Incident

Action taken

Medical treatment injury - Cromwell

When responding to a service request at a home in Cromwell, the Animal Control Officer was confronted by a member of the public who was driving past. After a verbal exchange, the occupant got out of his car and wrestled the Animal Control Officer to the ground. Police was called and a charge of assault was laid by the Animal Control Officer.

· Police attended the scene.

· ACC claim was lodged for neck injury.

· Incident investigated and recommended actions include for all warranted enforcement officers to complete de-escalation training and annual refresher training.

· Development of SOP that documents safety procedures prior (risk assessment) and when arriving at offsite locations

· Other recommendation includes development and implementation of lone worker solution that includes lone worker procedure and technology solution.

Near miss – Cromwell swim centre

A 5-year old girl was pulled out of the water from the learners pool part of the therapeutic pool) by a member of the public.

A lifeguard attended who seemed overwhelmed and uncertain of the appropriate response.

The girl was taken to hospital but did not sustain any injuries.

· The member of the public who pulled the girl from the water contacted WorkSafe as she felt emergency response procedures were inadequate.

· Full investigation completed and recommended action include more education of caregivers when entering the facility for children under 10 that they must always be actively supervised.

· More scenario-based training to be provided to lifeguards.

· Training refresher for swim centre staff including casual members that will cover emergency procedures.

· Investigation findings provided to WorkSafe.

Table 5. Notable incidents and associated action taken.

2.8 Critical risks

Graph 8 below shows the core risk or hazard associated with incident reports made during the reporting period.

Exposure to biological hazards have decreased to 6 (from 11 in the previous reporting period).

Number of aggressive behaviour or violence incidents are similar to what was reported during the last reporting period.

Graph 8. Incident reports relating to critical risk areas compared to previous reporting periods.

Aggressive behaviour or violence (9), biological hazards (6), driving and vehicles (3), animals (2), hazardous substances (1), impact with object (4), slip, trip, fall (3), fire (2), water (8)

2.9 Training and competency

Training area / course	This period
New staff inductions	6
First aid certificates (new and refresher)	14

Table 6. Training register excerpt

2.6.1 Planned training

· Crisis resilience workshop (to refine emergency procedures) and de-escalation training provided by security consultants OPSEC

2.10 Wellbeing

2.8.1 Indicator 1: No. employee sessions with EAP (Employee Assistance Programme)

EAP data covers the period April, May and June 2024.

During this period there were 55 work and personal matters raised with the onsite EAP provider:

· 70% were personal matters (62% the previous reporting period)

· 30% were workplace matters (38 %the previous reporting period)

Negative comments regarding Workplace Stress and Communication were raised most often.

EAP Top Theme (Work-related)

Position	Work-related themes
1	Workplace Stress
2	Communication
3	Career/Professional development

Table 7. Work-related theme.

Matters relating to Workplace Stress, Communication and Career Professional Development were the topics raised most often as a negative comment however, the rates are lower than the previous quarter and there were also staff who were having positive experiences within the same topics. For example, employees were feeling more positive about their work environment due to new team members coming on board which was helping to ease the burden. Employees mentioned improvement in morale and overall employees were feeling more satisfied in their work.

EAP Top 3 Themes (Personal)

Position	Personal themes (Top 3)
1	Relationships/Family
2	Health Physical/Emotional
3	Housing/Financial matters

Table 8. Personal themes (Top 3).

Family/Relationships and Physical/Emotional health continue to be the areas that are most affecting our staff on a personal level but again, the rates are lower than the previous quarter. However, there was also a rise in Housing/Financial matters. It could be indicative of the economic challenges but not specifically mentioned.

In depth sessions:

Of all matters discussed, on 20 occasions employees considered the matters significant enough to warrant a private in-depth conversation seeking individual support from the Wellbeing Supporter at which point they will have discussed strategies and/or been referred for counselling.

In depth sessions are defined as: In-depth conversations with an employee away from their desk, in a private room or off-site. These can last 30-60 minutes per conversation.

Clinical sessions:

Three employees accessed clinical/counselling for 9 sessions in total of which all were for personal matters and not workplace matters.

2.10.1 Indicator 2: Employee attendance at wellbeing events and activities and feedback from post-activity surveys

We continue to promote webinars hosted through My Everyday Wellbeing and the challenge for each month:

· The theme in May was Boost your wellbeing by trying something new.

· The theme in June was How to avoid the winter blues.

· The theme in July was How to recharge your batteries.

In June the webinar topic was “Cultivating mindfulness in high-stress environments”.

2.10.2 Scheduled activities

Webinar

In September’s My Everyday Wellbeing Live webinar - expert psychologist Dr Emma Woodward will be exploring the impact of traumas and micro-traumas on our lives. Topics include how our brains, bodies and nervous systems respond to trauma as well as practical tips for self-regulation.

3. Attachments

Nil

3 October 2024

24.3.9 Drinking Water Compliance

Doc ID: 1896096

Report Author:	Philippa Bain, Water Services Customer and Compliance Team Leader
Reviewed and authorised by:	Julie Muir, Three Waters Director

1. Purpose

To consider Central Otago District Council’s (CODC) compliance with the Drinking Water Quality Assurance Rules 2022 (DWQAR).

Recommendations

That the Error! No document variable supplied.

A. Receives the report and accepts the level of significance.

B. Recommends to Council that quarterly updates be provided on progress to achieve improved compliance.

2. Discussion

In November 2022, Taumata Arowai, the New Zealand Water Services Regulator, implemented the Drinking Water Quality Assurance Rules (DWQAR). The purpose of the rules is to ensure drinking water suppliers provide safe water and comply with the Water Services (Drinking Water Standards for New Zealand) Regulations 2022 (the Standards).

The DWQAR set minimum requirements for monitoring, reporting, and other activities, whereas the Standards, set the maximum acceptable values (MAVs) for a range of contaminants. The MAVs are based on the guideline values set by the World Health Organisation.

The annual reporting period to Taumata Arowai against the DWQAR is 1 January to 31 December, with information required to be submitted into the Tuamata Arowai online portal by end of February.

CODC is responsible for eight drinking water treatment plants and their related reticulated networks, supplying a resident population of approximately 18,500 people. This report aims to provide an initial high-level overview of CODC’s compliance with the DWQAR within each supply area. Future reports will provide an outline of the work programmed which will address non-compliance for future reporting.

An overview of the DWQAR structure

The DWQAR categorise a supply by the population size. The larger the population, the more stringent the rules and level of monitoring and reporting required. Table 1 outlines the categories that the CODC supplies fall into. The rule modules divide the supply into the source, treatment and distribution network components.

Naseby and Omakau are considered Variable Populations because their populations increase during Christmas and New Year, temporarily placing them in the large supply category.

Water supply		Rule module
Water supply		Source	Treatment	Distribution	Variable population
Large Supplies (>500)	Cromwell (8,186)	S3	T3	D3
	Ranfurly (723)	S3	T3	D3
	Roxburgh (796)	S3	T3	D3
	Pisa Village (743)	S3	T3	D3
	Lake Dunstan (7,584)	S3	T3	D3
Medium Supplies (101-500)	Naseby (163)	S2	T2	D2	Christmas and New Year Holiday period
	Patearoa (158)	S2	T2	D2
	Omakau/Ophir (352)	S2	T2	D2	Christmas and New Year Holiday period

Table 1: Categorisation of CODC Water Supplies

The DWQAR are split out into Monitoring rules and Assurance rules. The monitoring rules are the rules that must be complied with to demonstrate compliance with the Drinking Water Standards. They must be either continuously monitored or regularly sampled. They have compliance periods that range from one day to one year and reporting periods that range from monthly to annually.

The assurance rules cover activities that the supplier need to undertake that contribute to the delivery of safe water. Assurance rules do not demonstrate compliance with the Standards. Examples of assurance rules include the likes of the preparation of a backflow prevention program. Assurance rules have compliance and reporting periods of one year.

Issues Across All Supplies

Each water supply presents its own unique challenges and complexities, resulting in varying degrees of non-compliance. However, some issues are observed across all eight supplies. These include:

· Preparation of required assurance rule documentation

· Reporting timeframes

· Lack of required continuous monitoring equipment or monitoring equipment installed in the wrong location within the treatment process

· Sampling frequencies and record-keeping practices.

· Unknown data non-compliances

Several actions have already been initiated to address these non-compliances, including the recruitment of additional staff. Council has appointed a Planning and Policy Manager and a Treatment Engineer, and recruitment is currently underway for an Automation Engineer.

The Planning and Policy Manager doubles internal resourcing for preparing assurance rule documentation.

In early 2023, CODC entered a contract with Lutra to provide and implement the Infrastructure Data (ID) software. This software was intended to help meet the increasing requirements for drinking water compliance monitoring and reporting. ID integrates multiple data sources and enables complex calculations, which are displayed in dashboards and reports. For example, the level of monitoring required by the DWQAR includes minute-by-minute data analysis over a 12-month period.

The contract with Lutra specified that implementation would be completed by September 2023. This completion date has not been achieved due to resourcing issues with Lutra, and work is ongoing.

Lutra has informed CODC that when the company was sold in April 2023, the new owners significantly reduced staff numbers, just as more councils were adopting the software. This delay in implementation has greatly affected CODC’s ability to maintain clear visibility and report on compliance for 2023.

This has affected many councils who are customers of Lutra, and the issue is not unique to CODC. Lutra have been liaising directly with Taumata Arowai regarding this.

Despite the challenges with implementation, the benefits of the software are evident. Staff are continuing to collaborate with Lutra to ensure the implementation is completed.

Overall, sample results and frequencies were largely compliant. All water supplies achieved 100% compliance with the required standards for E.coli. Specific non-compliances for each scheme are detailed below.

The interval between FAC samples must not exceed four days, but throughout 2023, this requirement was frequently not met across all CODC supplies. Staff are now taking a more active role in monitoring the contractor’s sample schedule to ensure adherence to compliance standards moving forward.

Responsibility for the management of the sampling programme will transition in-house prior to 1 July 2025.

Adequacy of Telemetry and Monitoring Systems

The legacy monitoring and telemetry systems were not set up to collect the level of data now required under the DWQAR. There have been issues with the telemetry systems, and lack of power back-up to these during power outages. Additional continuous monitoring is required to be installed, but the telemetry systems will need to be upgrades to accommodate these.

The calculations to assess compliance are complex and require extensive data to be automatically collected from the plant, stored and accessed using telemetry. This data is then viewed through the ID software. Improvements are needed to the co-ordination of the plant monitoring systems, telemetry, and ID software to streamline and improve accuracy of compliance reporting.

The recent recruitment of the treatment engineer, automation engineer and completion of the ID software implementation will address this.

Cromwell

The most significant non-compliances for the Cromwell supply are the absence of a protozoa barrier and failure to meet the required chlorine contact time parameters (rules T3.2 and T3.4). The contact time rules specify the necessary duration for chlorine to effectively disinfect water.

Parts of Cromwell are fed directly from the treatment plant, rather than from the reservoir.

Compliance with the chorine contact time is calculated based on the risk to this first connected customer. As this property is located approximately 257 meters from the treatment plant it does not meet the contact time requirements.

The construction of a dedicated rising main and a new treatment plant will resolve both the contact time non-compliances and the requirement for a protozoa barrier. The treatment plant is expected to be complete in late 2025/early 2026.

On June 24, 2023, an incident occurred when the chlorine dosing line failed, resulting in non-compliant water entering the network for approximately 155 minutes. There were a number of resourcing and communications issues across both the CODC and FH teams at that time which have now been addressed. There was also an issue with the SCADA alarm settings.

Improved oversight of the contract has addressed this. Implementation of the ID system provides visibility of emerging trends so these can be addressed before non-compliance occurs. The appointment of an in-house automation engineer will improve management of the telemetry system and automation of plant inhibit settings.

CODC has conducted source water monitoring for all supplies for nearly 20 years. Initially, monitoring was performed annually, and later, every three years. Throughout this period, all determinands have consistently shown results below 50% of the MAV guidelines, indicating no levels of concern.

In October 2023, a chromium sample from one of the bores returned a result above the MAV. A duplicate sample collected from the same bore on the same day showed a result below 50% of the MAV. Given the historical data and the duplicate sample result, staff believes the initial high chromium reading was inaccurate. To comply with the DWQAR, monthly chromium sampling has been conducted since the incident. All subsequent samples have returned results below 50% MAV.

Lake Dunstan

The Lake Dunstan Water Supply was commissioned in May 2023. This is the district’s first membrane filtration water treatment plant. There has been a learning curve to fully understand all aspects of the compliance reporting related to this technology.

Four days of non-compliance with contact time was reported in December 2023.

Contact time is measured at the outlet of the treated water tank at the treatment plant.

This was caused by high demand from the Alexandra and Clyde reservoirs which dropped the level in the treated water tank level at the plant. To prevent this issue from recurring, adjustments have been made to the programming of the drawdown from the treated water tank.

While these incidents were reported as non-compliant based on the designated monitoring location, it is important to note that the Alexandra and Clyde reservoirs provide additional contact time before water reaches customers.

The complexity of programming has caused delays in making compliance data visible in the ID system. Some telemetry data was lost during the initial months of production, which has impacted accurate compliance reporting.

Roxburgh

The Roxburgh treatment plant utilises sodium hypochlorite, UV and a cartridge filter to treat the water. The UV unit, designed to treat protozoa, is not rated to achieve the full 4 log credits required for the source water used. The original design has 2 additional log credits being achieved through the cartridge filter.

Due to the level of turbidity in the source water, the cartridge filter is unable to be operated as designed. Investigation into a new source has progressed but indicated high water hardness for the viable alternative source. While it would address the compliance issue it would increase customer dissatisfaction. Alternative options are being investigated and a report will be provided to Council in 2025.

Both the Roxburgh and Pisa UV units have no continuous UV transmittance (UVT) monitoring in place. This is required by the DWQAR. This work will be progressed once the automation engineer commences to ensure that the telemetry system is able to interface with the monitoring devices.

In January 2023, CODC received notification from the laboratory of a chlorate level of 8.2 mg/L in one of the weekly samples which significantly exceeds the MAV. Taumata Arowai and Public Health were informed immediately. Immediate resampling was conducted over several consecutive days, and all results showed levels well below 50% of the MAV. There have been no further elevated chlorate levels reported throughout 2023 or 2024.

Ranfurly

There is no protozoal treatment in the Ranfurly supply, and it is frequently impacted by elevated turbidity caused by weather events. During a wet weather event the treatment plant inhibits for extended periods until the source water is back within treatable limits. These events can result in a Boil Water Notice for the community. Since 2022 the Ranfurly community has 8 days of boil water.

Conserve water notices are now being used more frequently to manage water demand when treatment issues initially occur. Stored treated water is able to be supplied for longer minimising the frequency and duration of boil water notices.

Implementation of protozoa barrier on Ranfurly is being progressed and is expected to be completed by late 2025.

Pisa

The Pisa water supply generally has high compliance with bacteriological treatment rules, with good contact time and low turbidity.

The UV unit was originally installed upside down. This causes inaccurate elevated turbidity readings at times as air can get trapped. As with the UV unit at Roxburgh, there is no UVT. There is a lack of understanding of the rated log credits for the unit.

The UVI limit and flow control need to be reviewed to understand possible over or under reporting and why flow exceeds the set points at times, rendering the UV treatment outside the required parameters for effective treatment.

The Pisa supply will be connected to the new Cromwell treated water supply after the new Pisa Reservoir and associated pipe upgrades are completed. This will address all compliance issues at Pisa and meet growth needs.

Omakau/Ophir

A UV and filtration system are required to meet DWQAR. Omakau has a media sand filter but no UV.

The Omakau source is vulnerable to high turbidity during rain events. Non-compliances for turbidity are regularly observed as short spikes during the start-up of the start pumps.

This dislodges minerals off the pipework causing the spikes.

A non-compliance event occurred in December 2023 due to the failure of the chlorine dose pump. When the pump was replaced, there was a period of manual adjustment between the flow and dose.

Omakau is classified as a Variable population over the summer months pushing the population into the large category for this period. When this occurs, additional monitoring is required.

For the past two summers, CODC has been non-compliant with the requirement to carry out some of the increased monitoring.

Naseby

The Naseby treatment plant is susceptible to high turbidity events triggered by weather. During these events the treatment plant struggles to treat the water through the UV unit which inhibits on low UV Intensity caused by the turbidity.

The UV unit is rated to give 3 log credits. The source has been classified as Class 3, requiring 4 log credits for protozoa treatment.

Instances of flow through the UV prior to UVI reaching the required level have resulted in non-compliance. A review of the run sequence is required to ensure enough time is allowed for.

Bacteria non-compliances have occurred when power outages result in loss of monitoring data. Between February and November 2023, five power outages resulted in non-compliance in recording of FAC and pH levels. While the required treatment continued, the absence of the required data means this must be reported as non-compliant.

The automation engineer will provide input into the options for power backup for data recording.

Patearoa

The Patearoa water supply is treated with sodium hypochlorite only, with no treatment for protozoa.

The most significant non-compliances for the Patearoa water supply through 2023 were related to the operation of the SCADA system and alarms.

Monitoring of FAC, pH and turbidity is carried out at both the treatment plant and the reservoir site. The monitoring devices at the reservoir are used to report bacteriological compliance.

A probe fault at the reservoir was recording inaccurate, non-compliant results for an extended period. There are no alarms set on these devices, resulting in no notification being sent to the contractor or CODC. A new probe has been installed. To mitigate future failure risk an alarm needs to be installed.

In April 2023 a rain event caused increased organic matter in the source water. A boil water notice was put in place for 7 days as a response to non-compliances with chlorine levels.

Taumata Arowai were notified, and additional monitoring was carried out.

Implementation of protozoa barrier on Patearoa is being progressed and is expected to be completed by late 2025.

3. Attachments

Appendix 1 - 2023 Cromwell Compliance.pdf ⇩

Appendix 2 - 2023 Lake Dunstan Compliance.pdf ⇩

Appendix 3 - 2023 Naseby Compliance.pdf ⇩

Appendix 4 - 2023 Omakau Compliance.pdf ⇩

Appendix 5 - 2023 Patearoa Compliance.pdf ⇩

Appendix 6 - 2023 Pisa Compliance.pdf ⇩

Appendix 7 - 2023 Ranfurly Compliance.pdf ⇩

Appendix 8 - 2023 Roxburgh Compliance.pdf ⇩


AGENDA Audit and Risk Committee Meeting Thursday, 3 October 2024
Date:	Thursday, 3 October 2024
Time:	9.30 am
Location:	Ngā Hau e Whā, William Fraser Building, 1 Dunorling Street, Alexandra (A link to the live stream will be available on the Central Otago District Council's website.)
Peter Kelly Chief Executive Officer

Report Author:	Wayne McEnteer, Governance Manager
Reviewed and authorised by:	Saskia Righarts, Group Manager - Business Support

Report Author:	Derek Shaw, Emergency Manager - Central Otago
Reviewed and authorised by:	Peter Kelly, Chief Executive Officer

Report Author:	Patrick Keenan, Capital Projects Programme Manager
Reviewed and authorised by:	Julie Muir, Group Manager - Three Waters

Report Author:	Quinton Penniall, Infrastructure Manager
Reviewed and authorised by:	Louise van der Voort, Group Manager - Planning and Infrastructure

Report Author:	Garreth Robinson, Property and Facilities Manager
Reviewed and authorised by:	Louise van der Voort, Group Manager - Planning and Infrastructure