Agenda of Corporate and Strategic Committee

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 11 September 2019

Subject: Annual Report Update

Reason for Report

1. This report provides the Corporate and Strategic Committee with a draft of the non-financial performance measures for inclusion in the 2018-19 Annual Report.

2. The audit of these measures is still underway so may change. The final measures will be presented to Council for adoption in the Annual Report at an extraordinary Council meeting on 9 October 2019. They have been presented today to familiarise the councillors with the results prior to adoption.

3. Financials are not ready for Council review at this time, as the audit of the consolidated group financial statements will commence on 16 September. The timetable has been impacted this year by the delayed receipt of Napier Port financials as a result of the recent IPO transaction.

Background

4. The purpose of the non-financial performance measures, as specified in the Local Government Act 2002, is to enable the public to assess the actual versus intended level of service achieved for major aspects of groups of activities.

Changes from the previous Annual Report

5. These are new measures that were adopted in the 2018-28 Long Term Plan for Year 1 of the Plan (2018-19). There are 60 measures in total, down from 145 in the previous annual report. The number and type of measures has been changed to focus on quantitative results that can be verified and repeated to build a time series and therefore show trends overtime. The old measures were mostly qualitative and described the work done that year. The new measures in contrast attempt to show what was achieved during the year.

Aggregated results for 2018-19

6. Of the 60 measures, 38 were “Achieved”, 6 were “Partially Achieved”, 13 were “Not Achieved” and 3 were “Not Measured”. The reason for non-achievement generally falls into three areas:

6.1. high targets set by ourselves, e.g. resident satisfaction

6.2. results outside our direct control (but important outcomes that we have a statutory role in contributing to) e.g. road toll, preparedness for CDEM events

6.3. resourcing, other priorities or time delays leading to incomplete work.

7. Commentary has been added to the quantitative results to provide context, and in particular, explain why measures have not been achieved. The full Annual Report document will also include highlights to describe what we did in the 2018-19 year in more detail.

Results by Activity

Governance and Partnerships

8. The two activities within the Governance and Partnerships group of activities are:

8.1 Community Representation and Leadership

8.2 Tangata Whenua Partnerships and Community Engagement.

Community Representation and Leadership Activity

Level of Service Statement	Level of Service Measures	Performance Targets	Performance Results
HBRC will make transparent decisions, deliver cost-effective infrastructure and services and engage the community in activities and decision-making processes, with clear expectations for participation	Council meetings are conducted in compliance with statutory requirements and Standing Orders.	Achieved	Achieved All Council and Committee meetings advertised, conducted and minuted in accordance with relevant Local Government Act and Local Government Official Information & Meetings Act requirements.
	LTPs and annual reports receive "unmodified" audit opinions.	Achieved	Partially Achieved An unmodified audit report was received on the 2018-2028 Long Term Plan. A modified audit opinion was received on the Regional Council and group’s full financial statements for the 2017-18 Annual Report. An unmodified audit opinion was received on the Regional Council and group’s other audited information. The basis for the modified audit opinion on the full financial statements was the result of Audit NZ being unable to obtain sufficient appropriate audit evidence to determine the tax effects of Ruataniwha Water Storage Scheme expenditure. The amount of tax deductions available in relation to the $19.594 million losses on the RWSS intangible asset has since been determined through a binding ruling from Inland Revenue Department (made in December 2018). The tax benefit will be recognised in HBRIC’s financial statements this year.
	Percentage of surveyed residents who perceive "acceptable to very good" value of services from HBRC rates (source: 2-yearly SIL perception survey).	75%	Not Achieved 73.8% (48.5% acceptable, 25.3% good/ very good). Despite not hitting the self-selected target this is nearly a 3% increase on the previous survey result (2017-18: 72.2%) so signifies a notable improvement in resident satisfaction. Note: The SIL perception survey was undertaken between May – June 2019 so has been reported in this financial year, not 2019-20 as scheduled in the 2018 -2028 Long Term Plan.
HBRC will make sound investment decisions to grow its assets and generate investment incomes to fund council projects, programmes and activities.	Rate of returns on investment as set out in council’s Investment Policy* are met.	Achieved	Partially Achieved Above target returns were achieved for some but not all of Council’s revenue generating assets. Commercial property returned a cash yield of >5%. The Napier Port achieved its forecast dividend and exceeded expectations in the recent IPO. The exception was managed funds. During the course of the financial year, $40 million was placed into diversified investment portfolios or ‘managed fund’. As at 30 June 2019 the combined balance of the fund was $41,909,541 representing an increase of 4.77% (before fees and inflation). While certain investments have met or exceeded the target rate of return (e.g. NZ equities, Trans-tasman equities), the overall investment returns for the managed fund are below Council’s FY19 targeted net inflation-adjusted return of 4.50% due to (1) Council’s allotment of capital between Income and Growth assets; and (2) Target asset allocation and portfolio composition have yet to be fully realised by one of the two fund managers. Target asset allocation for funds under management has not been achieved partly due to gradual, deliberate and systematic staggering of investment portfolio positions in a volatile macroeconomic environment. Annualised returns reporting relative to the benchmark will commence in 2020.

*Investment Performance Objectives [excerpt from SIPO]

9. Council’s Fund is targeted to earn a return at least equal to a real return (after inflation and fees) of 4.5% in Year 1 and 5.0% per annum in Year 2 and beyond. All returns are assessed in NZD.

Tāngata Whenua Partnerships and Community Engagement Activity

Level of Service Statement	Level of Service Measures	Performance Targets	Performance Results
HBRC engages in strategic relationships to better achieve its vision and purposes	Annual reporting to council on performance of strategic relationships	Achieved	Achieved Strategic relationships with Tāngata Whenua are held through a range of mechanisms, Regional Planning Committee (RPC), Māori Standing Committee (MSC), PSGE Chairs, and bi-laterals that are open to all PSGE’s as a 1-on-1 with HBRC Chair, Chief Executive and elected councillors. Only 3 PSGEs are participating in bi-laterals whereas all PSGEs except Te Uru Taumatua (Tūhoe) have appointees to the RPC which is a statutory committee. RPC and MSC met on their scheduled dates whereas the bi-laterals have moved considerably to accommodate business demand on respective contributors
HBRC has the internal capability and capacity to engage effectively with Tangata Whenua.	An annual programme to improve cultural competency for staff and councillors is resourced, developed and implemented.	Achieved	Not Achieved Annual programme delayed due to Māori Partnerships Group not achieving full capacity and induction of staff until May 2019. Cultural competency build programme will move as a priority to 2019-20 work programme.

Level of Service Statement

Level of Service Measures

Performance Targets

Performance Results

HBRC engages in strategic relationships to better achieve its vision and purposes

Annual reporting to council on performance of strategic relationships

Achieved

Achieved

Strategic relationships with Tāngata Whenua are held through a range of mechanisms, Regional Planning Committee (RPC), Māori Standing Committee (MSC), PSGE Chairs, and bi-laterals that are open to all PSGE’s as a 1-on-1 with HBRC Chair, Chief Executive and elected councillors. Only 3 PSGEs are participating in bi-laterals whereas all PSGEs except Te Uru Taumatua (Tūhoe) have appointees to the RPC which is a statutory committee. RPC and MSC met on their scheduled dates whereas the bi-laterals have moved considerably to accommodate business demand on respective contributors

HBRC has the internal capability and capacity to engage effectively with Tangata Whenua.

An annual programme to improve cultural competency for staff and councillors is resourced, developed and implemented.

Achieved

Not Achieved

Annual programme delayed due to Māori Partnerships Group not achieving full capacity and induction of staff until May 2019. Cultural competency build programme will move as a priority to 2019-20 work programme.

Strategic Planning

10. The three activities within the Strategic Planning group of activities are:

10.1. Strategy

10.2. Planning

10.3. Sustainable Regional Development.

Strategy Activity

Level of Service Statement

Level of Service Measures

Performance Targets

Performance Results

HBRC will keep informed about organisational, local, regional, national and international issues and trends, periodically develop a high quality and relevant Strategic Plan and align the organisation to deliver on strategic outcomes.

Annual reporting to council on the development and/or implementation of the Strategic Plan to maintain its currency and relevance.

Achieved

Achieved

An information paper was presented to the Corporate and Strategic Committee on 5 June 2019 to update the Council on progress with implementing the 2017-2021 Strategic Plan. Attached to the information paper was a Strategic Snapshot which gave a holistic view of council activity at a point in time and demonstrated how the programme of work contributes to achieving the 23 strategic goals from the Strategic Plan.

Planning Activity

Level of Service Statement	Level of Service Measures	Performance Targets	Performance Results
HBRC develops and maintains clear and appropriate policies that promote the sustainable management of the region's natural and physical resources and protects the community from resource management related risks.	Compliance with statutory timeframes for RMA planning documents	Achieved	Achieved The most critical statutory timeframe met this year was the adoption of the Council’s third edition National Policy Statement for Freshwater Management Progressive Implementation Plan PIP on 31 October 2018.
HBRC will proactively work with territorial authorities to achieve alignment on policies, plans and strategies.	Planning managers from HBRC and territorial authorities meet at least twice each year to discuss and identify integration issues; and improvements to content and/or processes for regional and district plans.	2 or more Achieved	Achieved Meetings were held with HB council planners on 26 Nov 2018 and 27 May 2019. The November meeting held at Napier City Council was to discuss potential draft national planning standards for network utility operations. The May meeting was a round table catch up of the HB Planners Forum on current work programmes and an introduction to the new Relationship Manager from Ministry for the Environment. Discussion around other items included: - Further Submissions on Plan Changes under amended RLAA 2017 - Mana Whakahono a Rohe on horizon and close inter council liaisons - Marine and Coastal Area Applications (MACAA) into 2020+ - National Monitoring System (NMS) review feedback - National planning standards - Quality planning website rebuild. This performance measure also relates to action 4.4 in the multi-partner Matariki Hawke’s Bay Regional Economic Strategy - “Ensure regional and district plans take a coherent and consistent approach to regulating common activities”. This action is largely focussed on TLA building and land use consenting. HB councils continue to progress this as the joint lead agencies. It is also worth noting that 2019 NZPI Conference 'Weaving the Strands' took place in Napier 2 - 5 April 2019 providing an opportunity for the HB Planning Managers to network not only with each other but also with many of their planning counterparts from around NZ.
HBRC will regularly submit on national direction, plan and consenting matters.	Number of submissions on resource management-related proposals made to local and central government per annum.	Maintain three year rolling average (6.3 in 2017-18)	Achieved 8.7 (3-year rolling average) Twelve submissions were made on resource management topics during 2018-19. This compares to five in 2017-18 and nine in 2016-17. Feedback was provided on the Government's Zero Carbon Consultation Document in July 2018 (Q1) and eleven submissions were presented on the Water Conservation Order (see table below). The WCO submissions and subsequent hearings was a significant investment in time and resources and overspent the statutory advocacy budget. In general, the past year has been exceptional for the intensive involvement by HBRC staff in reviewing the NPS-FM resulting in Government recently released Essential Freshwater package. For example, a Senior Policy Planner was seconded to the Ministry for the Environment for six months to work on freshwater reform and our Group Manager ICM and Chief Executive sat on the Freshwater Sub-Group of the Chief Executives Group directly influencing and shaping the national policy. Ongoing, our staff are well represented on regional sector special interest groups (including the Group Manager ICM’s role as the Convenor of the Resource Management Group), on National Science Challenges and our CEO sits on a Ministerial Forestry advisory group.

WCO submissions

Topic	Format	Date
Topic	Format	Statements	Hearing
TANK Group’s final recommendations	Memo on behalf of Council	30/08/18
Hydrology	Technical Statement of Evidence	25/01/19	28/02/19
Water quality, indigenous fish habitat	Technical Statement of Evidence	25/01/19	1/03/19
Indigenous fish	Technical Statement of Evidence	25/01/19	1/03/19
Hydrology	Technical Statement of Evidence	25/01/19	1/03/19
Planning	Technical Statement of Evidence	25/01/19	1/03/19
Ecology	Technical Statement of Evidence	25/01/19	5/03/19
Native bird values	Technical Statement of Evidence	5/02/19	1/03/19
HBRC activities and interests	Non-technical Statement of Evidence	15/02/19	28/02/19
Legal	Legal submission provided at the hearing	n/a	1/03/19
Demarcation of Upper and Lower	Memo on behalf of Council	08/03/19

Sustainable Regional Development Activity

Level of Service Statement

Level of Service Measures

Performance Targets

Performance Results

HBRC will coinvest in regional economic development organisations for the benefit of the Hawke's Bay economy.

Funding contracts with approved performance targets and reporting requirements are in place for HB Tourism, Matariki REDs and the Regional Business Partners Programme.

Achieved

Partially Achieved

Contracts with performance indicators are in place with Business Hawke's Bay (as part of HBRC's contribution to Matariki REDs) and the Regional Business Partners Programme. A funding agreement is in place with HB Tourism and proposed KPIs went to Corporate and Strategic Committee and Council in June 2019. The KPIs are being further developed and are expected to be adopted in September 2019.

Integrated Catchment Management

11. The three activities within the Integrated Catchment Management group of activities, are:

11.1. Science and Information

11.2. Catchment Management

11.3. Biodiversity and Biosecurity.

Science and Information

Level of Service Statement	Level of Service Measures	Performance Targets	Performance Results
HBRC will monitor and provide accurate and timely information to decision makers and the community on the State of the Environment (SOE) for Hawke’s Bay.	Council maintains its International Organisation for Standardisation (ISO) 9001-2018 accreditation for data collection, analysis and storage.	Achieved	Achieved Revalidation of ISO 9001:2015 was achieved in November 2018.
	SOE monitoring programmes are in place and results are published on HBRC and LAWA websites for: • Climate and Air Quality • Surface water • Groundwater • Land Science • The Coast	Achieved	Achieved During the year monitoring programmes ran to plan and relevant data was published on appropriate websites.
	A 5-yearly State of the Environment (SoE) Monitoring Report is produced along with annual scorecards and monthly updates. Results are made available primarily through digital media and summarised in the Annual Report.	Achieved	Partially Achieved Monthly reports were delivered as scheduled. Annual report cards have been produced. The 5-yearly SoE summary report and technical reports are in production, but delivery has been delayed until December 2019 due to unanticipated data analysis and quality assurance required.
HBRC will undertake targeted science research and investigations on matters relevant to policy development to inform the Council and stakeholders.	The Science team develops and implements an annual work programme in line with plan change requirements	Achieved	Achieved Science has supported Water Conservation Order, TANK Plan Change, Plan Change 6 (Tukituki) implementation and Mohaka Plan Change activities
HBRC will reduce harmful air pollution and comply with the National Environmental Standard (NES) for Air Quality.	Number of exceedances of PM10* in the Napier and Hastings Airsheds	Napier 1 Hastings 3	Partially Achieved Napier 0 Hastings 4 Napier had zero exceedances, compared with one last year. Hastings had four compared with two last year.
	Number of clean heat systems installed annually under financial assistance programme	1000 per annum (averaged over 10 years)	Achieved 10 year programme: >13,500 2018/19: 801 The Heatsmart programme started in 2009 with an objective of achieving 10,000 packages over 10 years (an average of 1000 per year). The programme target has been exceeded with more than 13,500 packages therefore the result is recorded as Achieved. The programme is currently in its 10th year and been extended to 2023. However, the uptake of packages is expected to be lower over the next three years.

*M10 are tiny airborne particles smaller than 10 micro-metres in size. High concentrations of PM10 are in the smoke from fires and increase the risk of respiratory and cardiovascular illnesses, including cancer. The Government has set a National Environmental Standard (NES) for PM10 at an average concentration of no more than 50 µg/m³ measured in open air over 24 hours.

Level of Service Statement	Level of Service Measures	Performance Targets	Performance Results
HBRC will encourage efficient and effective water use to maximise the benefits of the water allocated and comply with regulations under the RMA for measuring and reporting water takes.	Percentage of consent holders with water meters operating using telemetry or web/text systems	90.5%	Achieved 93% Of the water meters in use 93% are returning data via web or telemetry. Note: 8% of consent holders wells have a security seal (tamper tag) fitted. These wells are not in use. The security seal allows us to confirm that they have not been used.
	Total water consented as a percentage of the allocation limit for each significant water resource. 1. Esk 2. Karamu 3. Ngaruroro 4. Maraekakaho 5. Nuhaka 6. Raupare 7. Tutaekuri 8. Tutaekuri-Waimate 9. Tukituki Note: Additional rivers will be added as allocation regimes are set through catchment based plan changes to give effect to NPS FM.	For catchments at or below allocation when limit set the target is: Less than or equal to 100%. For fully allocated catchments when limit set the target is: Decreasing trend towards less than or equal to 100%	Achieved 100% Tukituki is the only catchment with a rule based limit set since the NPSFM came into effect and is less than or equal to 100%. The total allocated for the Tukituki catchment is 1930 L/s from a surface water take allocation limit of 1925 L/s. By zone this equates to: - Zone 1 Lower Tukituki = 101.9% - Zone 2 Waipawa River = 100% - Zone 3 Upper Tukituki = 99.3% The TANK plan change will address how the allocation particularly from stream depleting groundwater is to be counted in the next catchment to come under the NPSFM. In the meantime, no more water will be allocated from the surface low flow allocation block or groundwater from over allocated catchments.

Level of Service Statement

Level of Service Measures

Performance Targets

Performance Results

HBRC will encourage efficient and effective water use to maximise the benefits of the water allocated and comply with regulations under the RMA for measuring and reporting water takes.

Percentage of consent holders with water meters operating using telemetry or web/text systems

90.5%

Achieved

93%

Of the water meters in use 93% are returning data via web or telemetry.

Note: 8% of consent holders wells have a security seal (tamper tag) fitted. These wells are not in use. The security seal allows us to confirm that they have not been used.

Total water consented as a percentage of the allocation limit for each significant water resource.

1. Esk

2. Karamu

3. Ngaruroro

4. Maraekakaho

5. Nuhaka

6. Raupare

7. Tutaekuri

8. Tutaekuri-Waimate

9. Tukituki

Note: Additional rivers will be added as allocation regimes are set through catchment based plan changes to give effect to NPS FM.

For catchments at or below allocation when limit set the target is:

Less than or equal to 100%.

For fully allocated catchments when limit set the target is:

Decreasing trend towards

less than or equal to 100%

Achieved

100%

Tukituki is the only catchment with a rule based limit set since the NPSFM came into effect and is less than or equal to 100%. The total allocated for the Tukituki catchment is 1930 L/s from a surface water take allocation limit of 1925 L/s. By zone this equates to:

- Zone 1 Lower Tukituki = 101.9%

- Zone 2 Waipawa River = 100%

- Zone 3 Upper Tukituki = 99.3%

The TANK plan change will address how the allocation particularly from stream depleting groundwater is to be counted in the next catchment to come under the NPSFM. In the meantime, no more water will be allocated from the surface low flow allocation block or groundwater from over allocated catchments.

Catchment Management Activity

Level of Service Statement	Level of Service Measures	Performance Targets	Performance Results
HBRC will partner with tangata whenua and community groups in identified priority areas to achieve land and water outcomes.	Annual reporting to council on engagement, actions and impacts within priority areas.	Achieved	Achieved Reporting on the priority areas within the three catchment zones was completed at the Environment and Services Committee on 19 June 2019. All activity over the preceding 12 months in the relative catchments was presented, this included itemised reporting on tāngata whenua engagement. At the same meeting we also outlined our respective business plans for the following 12 months.
HBRC will work with farmers, growers and industry to transfer knowledge on environmental risks and impacts, and support the adoption of good management practice on-farm to achieve smart, sustainable land use.	Percentage of land area (by catchment) that operates under a Farm Environment Management Plan (FEMP) or an independently audited industry good management practice framework as required under the Regional Resource Management Plan (RRMP)*	Tukituki-100%	Partially Achieved 97% There was a 46% increase in the number of FEMPs within the Tukituki catchment, from 542 in July 2018 to 1010 in June 2019. This significant increase was due to regulations coming into force as well as a new dedicated resource and ongoing presentations to industry and small farmer groups. It also built on the momentum initiated in previous years through education, advocacy and relationship building by catchment management staff. The 100% target relates to the rules set by the Board of Inquiry. The small number of non-compliant farms are being dealt with by the consents and compliance teams.
HBRC will encourage through subsidy, education, working with industry and recording and reporting riparian planting and fencing, wetland protection and afforestation to improve soil conservation and water quality.	Additional area of highly erodible land planted in trees (ha).	2000 Ha of land under cover	Not measured This was the first year of a 10 year programme of work. The first 6 months saw the three zone teams (Northern, Mid and Southern) established and operating guidance and criteria to deliver the Erosion Control Scheme (ECS) developed. Reporting tools were also in construction, along with an interim ‘tracker/EROS’ to record works on the ground and their financials. End state reporting and data management systems are still in development. HBRC are currently finalising how to measure performance against this outcome in GIS and CRM (recording and reporting systems).
	Additional kilometres of riparian margin protected annually to reduce sediment, nutrient and/or bacterial contamination of water**	100km	Not measured HBRC are currently finalising how to measure performance against this outcome in GIS and CRM (recording and reporting systems).

* Other catchments will be added as new management regimes are set through catchment based plan changes to give effect to NPS FM.

** includes streams, drains, wetlands, lakes, estuaries and the coast.

Biodiversity and Biosecurity Activity

Level of Service Statement	Level of Service Measures	Performance Targets	Performance Results
HBRC will work with partners and stakeholders to implement the HB Biodiversity Strategy and Action Plan so biodiversity is enhanced, healthy and functioning.	Additional number of targeted priority sites where biodiversity is actively managed.	1-2	Achieved 13 Management actions were undertaken at 13 selected sites. This is well above the 1-2 sites p.a. This has been made possible via partnerships with Catchment Management, Engineering/Open Spaces, and external parties such as Native Forest Restoration Trust, Forest & Bird and Biodiversity Hawke's Bay.
HBRC will undertake research, and implement and review regional pest management plans that improve biodiversity, human health and economic prosperity.	Maintain and implement current Regional Pest Management Plan.	Achieved	Achieved The Regional Pest Management Plan became operative in February 2019.
HBRC will provide effective pest management programmes that improve regional biodiversity, human health and economic prosperity.	Percentage of monitored Possum Control Areas (PCAs) with a 5% or less trap catch.	90%	Achieved 100% All scheduled chew monitoring across the 18-19 season was completed in a timely manner. The average RTCI for the 18-19 season was 1.5% across the 85932 ha monitored with 100% of the 18 PCAs monitored being below a 5% RTC.
	Decreasing trend in the number of active rook nests.	Achieved Decreasing trend 5-year rolling average (2017-18: 362.2)	Achieved 307.2 (5-year average) Aerial rook control has been carried out and completed in all known rookeries across the region with a total of 45 active nests aerial treated across the eradication zone north of SH5 and 223 across the control zone south of SH5.
	Percentage of animal pest enquiries responded to within target timeframe. (5 days for rabbits).	100%	Achieved 100% A total of 68 rabbit enquiries have been received and responded to within 5 working days of receiving the initial call. Assistance and or advice was provided as appropriate.
	Percentage of plant pest inspections and actions completed within target timeframes (see schedule for specific plant pests).	100%	Achieved 100% All known sites of African feather grass, Goats rue, Nassella tussock, Spiny emex, White edged nightshade and Yellow water lily checked and controlled. No Yellow water lily found, this plant may now be eradicated. Two sprays of all Phragmites sites done, only two new sites found. All Privet complaints dealt with. Japanese honeysuckle control completed around Lake Tūtira and all Old man's beard sites checked and controlled in control area. Pinus contorta programmes in conjunction with MPI in "Kaimanawa management unit" completed. Control work started on dense iwi block adjacent to SH5 in Rangitaiki near the Waipunga Falls. Woolly nightshade rural and urban control programmes completed. Some targeted CNG Taskforce spraying completed. New sites of CNG found down the Tukituki river.

Asset Management

12. The five activities within the Asset Management group of activities are:

12.1. Flood Protection and Control Works

12.2. Flood Risk Assessment and Warning

12.3. Coastal Hazards

12.4. Open Spaces

12.5. Works Group.

Flood Protection and Control Works (Rivers) Activity

Level of Service Statement	Level of Service Measures	Performance Targets	Performance Results
HBRC will maintain an effective flood control network that provides protection from frequent river flooding to communities and productive land within designated flood protection schemes in the Heretaunga Plains and Ruataniwha Plains.	The major flood protection and control works that are maintained, repaired and renewed to the standards defined in the relevant scheme Asset Management Plan and annual works program.	Achieved	Achieved Our major flood protection and control works that are being maintained, repaired and renewed to the standards defined in the relevant scheme Asset Management Plan. Planned annual maintenance works were executed.
	Changes to flood levels of protection* are consulted on with the affected communities and delivered within agreed timeframe. *Current levels of protection are 1%AEP (1:100 year return period) for both Heretaunga Plains and Upper Tukituki Schemes.	Heretaunga Plains: Phased design and construction Upper Tukituki: Consultation on change to 0.2% AEP	Not Achieved The Heretaunga plains flood protection level of service review to assess options for raising our current level of protection form 1% to 0.2% AEP is behind where it should be, owing to severe staff shortage during this reporting period
HBRC will protect and enhance the scheme’s riparian land and associated waterways administered by the Regional Council for public enjoyment and increased biodiversity.	The ecological function of urban streams is maintained or enhanced (source: 6-yearly rolling review and Ecological Valuations of River Ecological Management and Enhancement Plans (EMEP).	Achieved	Not measured No survey was undertaken this year but tasks associated with targets within the EMEP are progressing. This includes river bird surveys, pre gravel extraction inspections and writing a new Standard Operating Procedure for eel rescue.

Flood Protection and Control Works (Drainage) Activity

Level of Service Statement

Level of Service Measures

Performance Targets

Performance Results

HBRC will maintain an effective drainage network that provides drainage outlet for rainfall runoff for communities and productive land within the drainage scheme.

Number of reported incidences of out- of- channel flooding lasting more than 24 hours for the design rainfall runoff and lesser events.

Zero

Achieved

No incidences were reported

Flood Protection and Control Works (Small Schemes) Activity

Level of Service Statement

Level of Service Measures

Performance Targets

Performance Results

HBRC will maintain an effective flood control and drainage network that provides protection from frequent flooding to communities and productive land within designated Scheme areas, including:

- Makara Flood Control
- Paeroa Drainage
- Porangahau Flood Control
- Ohuia – Whakaki Drainage
- Esk River
- Whirinaki Drainage
- Maraetotara
- Te Ngarue
- Kopuawhara Flood Control
- Poukawa Drainage
- Kairakau

Flood protection and drainage networks are maintained, repaired and renewed to the key standards defined in the Scheme Asset management plan and annual works program.

Achieved

Achieved

Our flood protection and drainage networks are maintained, repaired and renewed to the key standards defined in the Scheme Asset management plan. Planned maintenance works were all executed.

Flood Risk Assessment and Warning Activity

Level of Service Statement

Level of Service Measures

Performance Targets

Performance Results

HBRC provides reliable warning of flooding from the region’s major rivers to at risk communities in the Wairoa, Tutaekuri, and Ngaruroro and Tukituki areas.

Percentage of time that priority telemetered rainfall and river level sites are operational throughout the year.

98%

Achieved

98.06%

Priority sites were operational 8590 days out of a total of 8760 days.

Council provides accurate and timely flood forecasting information online to advise the community on likely rainfall and flooding.

Percentage of the region at risk of flooding from large rivers, covered by a flood forecasting model.

70%

Achieved

Three river flood forecasting models exist:

- Wairoa

- Ngaruroro/Tutaekuri

- Tukituki.

Flooding from the rivers in these catchments could cause large economic loss.

The area of these catchments cover about 70% of the entire region

Open Spaces Activity

Level of Service Statement

Level of Service Measures

Performance Targets

Performance Results

HBRC will maintain, develop, and provide public access to existing Council owned regional parks and investigate affordable new opportunities for public enjoyment of open space for multi-purpose benefits.

Regional parks are managed to the key standards defined in Individual Park Plans (IPPs) where present and / or the HBRC Regional Park Network Plan.

Achieved

Achieved

Maintenance contracts are in place and maintenance schedules are clear in these documents.

Draft IPPs complete for Waitangi Regional Park, Pakowhai Regional Park, Pekapeka Regional Park and Tutira Regional Park

Consents and Compliance

13. The three activities within the Consents and Compliance group of activities are:

13.1. Consents

13.2. Compliance and Pollution Response

13.3. Maritime Safety.

Consents Activity

Level of Service Statement

Level of Service Measures

Performance Targets

Performance Results

HBRC will process resource consent applications in a timely manner.

Percentage of resource consents processed within statutory timeframe in Resource Management Act

100%

Achieved

100%

455 resource consents were processed to completion within the statutory timeframe

Compliance and Pollution Response Activity

Level of Service Statement	Level of Service Measures	Performance Targets	Performance Results
HBRC will monitor consent holders to ensure compliance with the resource consent conditions imposed to protect the environment and human health.	Percentage of programmed inspections/reports completed each year as per the adopted risk-based Compliance Monitoring Strategy.	100%	Not Achieved Percentage Monitored: 90.9% Consents to be monitored 3519 Consents Monitored 3198 The percentage of resource consents monitored is down on the previous year (2017-18: 94%) due to compliance staff taken away from their key function to assist with the setting up and implementation of the IRIS data base and the implementation of the NES Plantation Forestry.
	Percentage of monitored consents which receive an overall grade of full compliance.	95%	Not Achieved Full Compliance 92.17% Low Risk Noncompliance 1.79% Moderate Noncompliance 3.11% Significant Noncompliance 2.83% Incomplete (work in process) 0.11% This compares to 93.5% in the previous year (2017-18) and is likely to reflect the introduction of a new grade classified as “low risk non-compliance” within our new reporting system called IRIS rather than any notable worsening of performance. Council escalates its regulatory response on a case by case basis according to the risk to the environment and human health, the seriousness of the non-compliance, the apparent attitude to compliance, and the compliance history and frequency of issues arising.
HBRC will provide a pollution response service for public complaints, reports of environmental incidents and unauthorised activities.	Maintain a 24- hour/7 day a week duty management/pollution management response system.	Achieved	Achieved The total number of pollution calls was 1,116, compared to 1095, a 2% increase Calls by type: Air = 660 (LY= 696) Coastal = 54 (LY=56) Groundwater = 13 (LY=16) Land = 237 (LY=97) Surface water = 151 (LY=224) Navigational Safety = 1 (LY=6) Enforcement: Abatement Notices issued = 40 (LY=46) Infringement Notices = 101 (LY=92) Prosecutions = 4 (LY=5)
HBRC will investigate and manage contaminated sites to ensure public health and safety and environmental protection.	A Hazardous Activities & Industries List (HAIL) database of potentially and confirmed contaminated sites is maintained.	Achieved	Achieved Work is continuing to make the HAIL list available by web link or similar to enable free access to those regularly requiring that information. Presently there is a charge for that service. There is ongoing work to verify all listed HAIL sites.
HBRC will respond to oil spills within the Hawke’s Bay Coastal Marine boundary and maintain a Tier 2 Oil Spill Response Plan, which identifies priority areas in HB for protection in the event of a major spill.	An operative Tier 2 Oil Spill Plan and a trained and qualified oil spill response team is in place at all times.	Achieved	Achieved An operative and approved T2 oil spill plan is in place. All oil spill training is up-to-date with the next exercise scheduled for September 2019

Maritime Safety Activity

Level of Service Statement

Level of Service Measures

Performance Targets

Performance Results

HBRC will provide local navigation safety control of shipping and small craft movements and provide navigation aids to ensure the region’s navigable waters are safe for people to use.

Maintain a Maritime New Zealand accredited Hazard Identification/Risk Assessment and Safety Management System for the Napier Pilotage Area.

Achieved

Achieved

Undertaken as part of the Port and Harbour Marine Safety Code (PHMSC) self-audit in June 2019

Number of maritime incidents occurring per year reported to Maritime New Zealand in accordance with regulations.

Decreasing trend

Baseline: Three year rolling average to June 2018 = 43

Not Achieved

73 (3-year rolling average)

There were 105 incidents reported compared to 82 in 2017-18 and 33 in 2016-17. Note: approximately half of this years notified events were regarding log handling at the port or pilot ladder standards on foreign vessels.

Emergency Management

14. The two activities within the Emergency Management group of activities are:

14.1. Hawke’s Bay CDEM Group

14.2. HBRC Emergency Management.

Hawke’s Bay CDEM Group Activity

Level of Service Statement	Level of Service Measures	Performance Targets	Performance Results
The HBCDEM Group will educate people about hazards, increase natural hazards knowledge through research and provide this information for risk reduction measures including land use planning, asset management, and infrastructure.	A 5-yearly Hazard Research Plan is approved by and reported on annually to the CDEM Group Coordinating Executives Group.	Achieved	Achieved Ongoing research, this year focused on landslide risk, was commissioned in accordance with the Plan, and has been reported to CEG – last report was August 2018 on Hikurangi Response Plan project.
	Percentage of surveyed residents that identify earthquake, flooding, and tsunami as major hazards in Hawke’s Bay (source: 2-yearly SIL perception survey).	Same or better result than last survey. Last survey was in 2017: 86% of residents identified earthquakes, 58% of residents identified flooding/heavy rain, 45% of residents identified tsunami.	Not Achieved Earthquake (74.9%); Flooding (47.3%); Tsunami (43.3%) Risk awareness for the top 3 risks was worse than the previous survey undertaken in 2017. Note: The SIL perception survey was undertaken between May – June 2019 so has been reported in this financial year, not 2019-20 as scheduled in the 2018 -2028 Long Term Plan.
The HB CDEM Group will increase readiness, and ensure a coordinated and appropriate response and recovery from a civil defence emergency to reduce the impact on people and property	An operative Group Plan under the CDEM Act 2002 is in place, reported on annually and reviewed within statutory timeframes by the Joint Committee.	Achieved	Achieved A review has commenced with the Joint Committee. Monitoring and evaluation process completed and report finalised for next Joint Committee meeting.
	A Group Work Programme implementing the Group Plan objectives is approved and reviewed 6 monthly by the Coordinating Executives Group.	Achieved	Achieved Group work programme developed and approved for Coordinating Executives Group. Performance reporting completed and reported at 24 June meeting.
	Overall percentage score from the Ministry of CDEM assessment of the Hawke's Bay CDEM Group's capability (source: 5-yearly assessment).	80%	Not Achieved 72% The 5-yearly independent Capability Assessment was undertaken in May 2019 (a year earlier than planned). Despite not achieving the target of 80%, this is a significant improvement on previous results (2014/15: 60.8% and 2009-10: 51.4%). It shows a general improvement from developing to advancing and maturing capability.
	Percentage of surveyed residents prepared to cope for at least three days or more on their own (source: 2-yearly perception survey).	Increasing trend Last survey was in 2017: 90% of residents have enough food for three days and some way of cooking 75% have enough water stored.	Not Achieved 84% of residents have enough food for three days; 62% enough water; and 82% some way of cooking without electricity. This result is worse across all three measures of preparedness when compared to the previous survey undertaken in 2017. Note: The SIL perception survey was undertaken between May – June 2019 so has been reported in this financial year, not 2019-20 as scheduled in the 2018 -2028 Long Term Plan.

HBRC Emergency Management

Level of Service Statement	Level of Service Measures	Performance Targets	Performance Results
As the HB CDEM Group's Administering Authority, HBRC will provide an agreed budget and support to enable the Group to achieve the CDEM outcomes agreed to in the Group Plan.	HBRC provides support to the HB CDEM Group in accordance with a service level agreement.	Achieved	Achieved Relationships continue to be constructive between Group member councils in this area as reference in Capability Assessment Report 2019.
HBRC will ensure it has capability and capacity to respond and manage its assets during a civil defence emergency.	Maintain established team, training, procedures including Emergency Operations Centre Manual and Business Continuance Plan.	Achieved	Achieved The Emergency Procedures SOP's and team structures have been maintained, including inductions & training for new staff, and team refreshers, the BCP was reviewed September 2016 with current version on Herbi. A consultant reviewed the BCP and the Executive commenced work on implementing recommended improvements, which is 50% complete
	24-hour duty management system in place.	Achieved	Achieved An effective 24-hour duty management system, supported by PNCC afterhours, has been operated with 348 calls managed & logged by the duty managers for the year. 79 warnings or watches or severe weather, tsunami, or other events have been effectively managed.

Transport

15. The two activities within the Transport group of activities are:

15.1. Transport Planning and Road Safety

15.2. Passenger Transport.

Transport Planning and Road Safety Activity

Level of Service Statement

Level of Service Measures

Performance Targets

Performance Results

HBRC will develop and implement the region’s transport planning documents to promote improved integration of all transport modes, land use and efficient movement of freight.

Adopted Regional Land Transport Plan (RLTP), Regional Public Transport Plan (RPTP) and Regional Cycling Plan in place.

Achieved

Achieved

The Regional Land Transport Plan was adopted in June 2018 in accordance with statutory timeframes. The Regional Public Transport Plan 2015 was reviewed during the 2018-19 year and was adopted by Council in June 2019. The Regional Cycle Plan 2015 is in place but under review during 2019.

HBRC will coordinate and implement sustainable regional road safety initiatives so that Hawke’s Bay roads and pathways are safe and accessible, and the emotional and financial costs of road traffic crashes are reduced.

Incidence of fatal and injury crashes in our region (5 year rolling average).

Decreasing trend

Five year rolling average to 2016 = 335

Not Achieved

The five year rolling average of fatal and injury crashes in HB was 344 in 2017, the latest year for which data is available. This is an increase of 2.6% on the previous five year average to 2016. 2018 figures will be available in September 2019.

Passenger Transport Activity

Level of Service Statement	Level of Service Measures	Performance Targets	Performance Results
HBRC will provide an accessible, integrated bus service and work with the relevant territorial authority to ensure appropriate service infrastructure within and between the Napier, Hastings and Havelock North urban areas to meet the transport needs of the people of Hawke’s Bay.	Annual patronage on the Hawke’s Bay bus services.	Maintain or increasing trend (based on 5-yearly rolling average) 2016-17: 688,572 trips taken	Not Achieved 2018-19: 645,297 trips taken. Five year rolling average to Jun 2019: 687,831. Patronage has decreased by 3% this year, while the five year average has decreased by 4%. The longer services (between Napier and Hastings) have maintained or increased patronage, but many of the suburban services are showing significant declines. In response to the continued drop in patronage and in light of the council’s recent climate change declaration the Regional Transport Committee tasked staff with recommending innovative new ways to mitigation climate change through public transport. The first report is scheduled to be tabled at the Regional Transport Committee in September 2019.
	Annual passenger kilometres travelled on the Hawke’s Bay bus services.	Maintain or increasing trend (based on 5-yearly rolling average) 2016-17: 7,359,612	Not Achieved 2018-19: 6,949,061 passenger kilometres travelled. Five year rolling average to Jun 2019: 7,218,669 km. As patronage is less than last year, the five year rolling average for passenger kilometres is also down, although not by the same percentage. This is because the decline in patronage is less apparent on our longer routes than on the shorter suburban routes.
	Proportion of total service costs that is covered by fares.	Maintain or increasing trend (based on 5-yearly rolling average) 2016-17: 38.5%	Not Achieved 2018-19: 34.6% Five year rolling average to Jun 2019: 37.3% The annual and rolling average fare recovery rate have declined due to higher costs and lower revenues as a result of declining patronage.
	Percentage of residences and businesses within 500m (under normal conditions) and 600m (in low density/outer areas) walking distance of a bus stop within existing bus routes.	90% Hastings 75% Napier	Achieved 90% Hastings 90% Napier A re-calculation exercise conducted using Napier and Hastings district plan maps has shown that 90% of residential and commercial business are now within 500m of a bus stop. Low density/outer urban areas were not able to be calculated using this method.

Decision Making Process

16. Staff have assessed the requirements of the Local Government Act 2002 in relation to this item and have concluded that, as this report is for information only, the decision making provisions do not apply.

Recommendation

That the Corporate and Strategic Committee receives the “Annual Report Update” staff report.

Authored by:

Desiree Cull

Strategy and Projects Leader

Approved by:

Jessica Ellerm

Group Manager
Corporate Services

Attachment/s

There are no attachments for this report.

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED	REASON FOR PASSING THIS RESOLUTION	GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION
S17a Review Proposal	7(2)(f)(ii) The withholding of the information is necessary to maintain the effective conduct of public affairs through the protection of such members, officers, employees, and persons from improper pressure or harassment.	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

Topic	Raised by