Agenda of Corporate and Strategic Committee

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 12 September 2012

SUBJECT: Trees on Farms Update

Reason for Report

1. Council, at its June Long Term Plan meetings, confirmed the inclusion of the provision to spend $47 million in the 2012/22 period as investment into hill country afforestation subject to Council approval of an Operational Plan, and a Carbon Trading Strategy and Policy for the project by September 2012.

Background

Trees on Farms Regional Afforestation Project

2. The Carbon Trading Strategy addresses the overall carbon trading policy framework (at a conceptual level) and the possible controls and internal structure for managing carbon. It also outlines the tools needed so that carbon sequestered through the Trees on Farms programme can be adaptively managed overtime, enabling Council to realise its investment returns from Trees on Farms (ToF) forest establishment.

3. The Operational Plan (Attachment 2) addresses the suitability of species, silviculture regimes, grant rates and the balance of carbon and wood values, and site suitability to achieve the environmental values. A number of investment options were filtered based on their suitability from a legal, taxation, and contractual implementation perspective. The investment options considered in detail were an Afforestation Grants Scheme (AGS) option and a carbon lease facilitated by a third party. Indigenous forest / manuka is a future option that will be further assessed once initial assessment of manuka honey returns have been made from the Tutira Country park trial. This will be within the next 3-5 years. There is an opportunity for Manuka to act as an indigenous forest succession crop. A number of Long Term Plan submissions for the ToF project commented on the desirability of having an indigenous species afforestation option.

Carbon Trading Strategy and Policy

4. The framework for the Carbon Trading Strategy and Policy will be finalised based on the report (Attachment 1) ”HBRC – An implementation approach and plan for market risk management for trees on farms programme from C02 NZ Ltd Partnership” which builds on previous reports on Carbon trading and risks from BDO and Bruce Miller of Carbon NZ Ltd.

5. Key recommendations from the report that are proposed to form part of the final carbon trading strategy and policy are:

5.1 Establish a stated average annual portfolio return level and duration as well as a general policy statement of risk preferences (pg 8)

5.2 Include a process that better quantifies the environmental benefits of ToF projects (pg11-13)

5.3 Develop the detail around the policy prescription. It is worth noting that the range of reports completed during the ToF due diligence will support the development of this detail (pg 17)

5.4 Develop a decision support tool to enable adaptive management of the ToF portfolio in response to a range of factors and risks (pg 19).

Operational Plan

6. A technical advisory group (TAG) was established in late June to advise on legal, taxation, accountancy, forestry technical implementation and financial modelling, land valuation and land use intensification issues associated with the ‘Trees on Farms” (ToF) project. The advice of the TAG was refined over a two month period to provide the recommendations and conclusions in the “Report of the Trees on Farms Technical Advisory Group (TAG)” (including the TAG membership and process) and is attached in Attachment 3. The reports of the TAG either for their individual specialist areas of expertise or with members operating as small sub groups are also available to Council.

7. The TAG recommendations and conclusions discuss the preferred investment options included in the operational plan given the complex legal, taxation and liability issues associated with the proposed investment.

8. The operational plan establishes a framework for selection regarding suitability of species, silviculture regimes, grant rates and the balance of carbon and wood values, and site suitability to achieve the environmental values.

9. During the course of the development of the Operational Plan and the TAG process the complexity of achieving an efficient and effective operational delivery in the context of the ToF project has become increasingly clear. Staff propose (and the operational plan outlines) a planting target for the winter of 2013 of 300-400 hectares (LTP 500 ha) with future planting targets in line with the Long Term Plan (LTP) performance objectives. The proposed investment for the 2012-13 financial year is $892,000.

10. Given approval of this operational plan, two additional staff positions have been budgeted and will be required to deliver the ToF project. The first role will be filled immediately and will be based in Central Hawke’s Bay, with a start in October 2012. The second person will start in January 2013.

11. Concurrently with the TAG process two in depth farmer focus groups were facilitated to gain an insight into farmer perception of the proposed ToF project, investment options and on farm implementation.

12. The focus groups were facilitated by an experienced AgFirst consultant (who was also a TAG participant) with farmers selected to broadly represent the target market for the ToF project. The recommendations from the focus groups provided a valuable insight into landowner perceptions of ToF. This report is presented in Attachment 4. Key strong themes were:

12.1. Most were very supportive of the programmes conceptual approach particularly alignment of Council investment funds into a broader economic and environmental role within the region.

12.2. The significant majority believed that the return on investment of 7.5% expected by council was too high. Comments centred around Council effectively using the farmer’s land to make an ROI that is unrealistic in the current market, gaining considerable community environmental benefits from the projects while requiring the farmer to take the majority of the risk. Given the significant environmental and regional economic benefits of the project returns of 5% were suggested as more realistic, and more indicative of a partnership project.

12.3. That Council’s ability to help landowners manage the complexity of the ETS and forestry related issues such as harvesting and selling timber will be very important to broad uptake.

12.4. That farmers’ understanding the true costs and returns from their marginal land will be important in decisions to shift that land from pastoral farming to trees.

13. Any change to the proposed IRR from the ToF project will need additional modelling to understand what if any the implications are for the long term plan financial forecast.

14. Future operational plans will be refined to outline the most effective means to deliver the ToF project in a way that reduces barriers to land user participation.

15. A detailed financial model has been prepared so that the indicative returns from participation in the ToF project for both HBRC and the landowner can be better understood including the key sensitivities associated with the proposed investment options. The projects are most sensitive to the establishment grant rate, the carbon price over the ten years of the safe carbon sequestration and the per hectare net stumpage figures. The modelling is still subject to additional work and the completion of a peer review process.

16. The Operational Plan and proposed process for aligning ToF project future investment returns to Councils cost of money will be reviewed and presented to Council in May 2013 in preparation for the winter 2014 planting programme.

Financial Report on Proposals in the Paper

17. The financial impact of the proposals on the LTP 2012-22 is set out in the table below.

Projected Change in Forecast Return Compared with LTP

	Financial Year Ended 30 June
	2013 $’000	2014 $’000	2015 $’000	2016 $’000	2017 $’000	2018 $’000	2019 $’000	2020 $’000	2021 $’000	2022 $’000	Totals $’000
Return per LTP *	25	137	376	660	945	1213	1436	1619	1706	1716	9833
Actual Return of 5.5%	22	111	282	493	705	907	1070	1188	1251	1259	7288
Retduction in Return	3	26	94	167	240	306	366	431	455	457	2545
Cumulative Impact	3	29	123	290	530	836	1202	1633	2088	2545

* The expected Rate of Return per the LTP was 6.5% for 2013, 7.0% for 2014 and 7.5% for 2015-2022.

18. The financial strategy in the LTP 2012-22 allows for the provision of an investment risk reserve which could be used by Council to cushion the difference between the actual returns achieved on investments and those returns assumed by the LTP. This investment risk reserve is able to offset a reduction in returns of between 1% - 1.5%.

19. Accordingly, in the initial years of the LTP this investment risk reserve could be used to offset the reduction in revenues (from a proposed actual return of 5.5%). Given the reduced returns proposed in this forestry investment, it is believed that it would be prudent for Council to consider the following in relation to the proposal to invest in forestry on marginal hill country land within Hawke’s Bay:

19.1 The contracts with farmers should build in flexibility to enable Council to negotiate increased returns in future years where the bank bill rates and Council’s borrowing rates have increased above 5.5%.

19.2 Given the lower returns currently on offer, the planting programme should be slower than envisaged in the LTP and should be delivered within current staffing numbers.

19.3 The programme for forestry planting in hill country should be accelerated when the increase from carbon starts to strengthen.

Financial Report on Proposals section only compiled by:

Paul Drury

Group ManageR

Corporate Services

Decision Making Process

20. Council is required to make a decision in accordance with the requirements of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained in Part 6 Sub Part 1 of the Act in relation to this item and have concluded the following:

20.1. The decision does not significantly alter the service provision or affect a strategic asset.

20.2. The use of the special consultative procedure is not prescribed by legislation.

20.3. The decision does not fall within the definition of Council’s policy on significance.

20.4. The persons affected by this decision are the public of the Hawke’s Bay region who have had the opportunity to comment through the 2012-22 Long Term Plan process

20.5. Options that were considered through the 2012-22 Long Term Plan consultation process included doing nothing. The 2012-22 LTP confirmed the afforestation investment subject to the detailed policy being presented allowing the investment to proceed.

20.6. The decision is not inconsistent with an existing policy or plan.

20.7. Given the nature and significance of the issue to be considered and decided, and also the persons likely to be affected by, or have an interest in the decisions made, Council can exercise its discretion and make a decision without consulting directly with the community or others having an interest in the decision.

Recommendations

The Corporate and Strategic Committee recommends that Council:

1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted policy on significance and that Council can exercise its discretion under Sections 79(1)(a) and 82(3) of the Local Government Act 2002 and make decisions on this issue without conferring directly with the community and persons likely to be affected by or to have an interest in the decision due to the nature and significance of the issue to be considered and decided.

2. Endorses the Operational Plan for the 2012/13 financial year.

3. Endorses the finalisation of a Carbon Trading Strategy and Policy based on the framework presented in “HBRC – An implementation approach and plan for market risk management for trees on farms programme from C02 NZ Ltd Partnership”.

4. Confirms the 2012-13 Trees on Farms budget provisions for planting and engaging staff.

5. Agrees an average rate of return of 5.5% across the Trees on Farms portfolio for contracts that will be negotiated for planting that is to occur in the 2013 winter, reflecting Council’s cost of money and the significant environmental benefits of the programme.

Campbell Leckie

Manager Land Services

Mike Adye

Group Manager

Asset Management

Attachment/s

1	Trees on Farms Programme CO2 NZ Ltd Partnership	Under Separate Cover
2	Regional Afforestation Programme Operational Plan 2012-13	Under Separate Cover
3	Report of the Trees on Farms TAG	Under Separate Cover
4	Trees on Farms Farmer Research	Under Separate Cover

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 12 September 2012

SUBJECT: Hawke's Bay Local Authority Shared Services

Reason for Report

1. In December 2011 HBRC received a letter from Hastings District and Napier City councils setting out their proposal to establish a Council Controlled Organisation (CCO) to implement shared services. An invitation was extended to HBRC to consider joining the CCO.

2. HBRC has consulted through its Draft Long Term Plan on becoming part of the Hawke’s Bay Local Authority Shared Services company (HBLASS) and is now in a position to participate in the setting up of the company.

Discussion

3. Council’s resolution following consultation and submissions through the Draft Long Term Plan was:

“That Council commits in principle to participating in a Hawke’s Bay Local Authority Shared Services Company and instructs staff to prepare a separate paper on the requirements for Council’s participation.”

4. The HBLASS is being established through the initiatives of Hastings District and Napier City councils who have for some time undertaken a number of joint activities with the purpose of reducing the cost of performing those activities to the community at large. The proposal is that each Local Authority will have one share in the umbrella company. Participating councils will be able to access particular shared services by way of an agreement providing appropriate obligations and benefits relating to each of those services.

Peter Winder – Shared Services Report March 2012

5. The report on Local Authority shared services, considered by HBRC in March 2012, outlined three types of approaches to shared services.

5.1. Joint procurement – this involves collective purchasing of good or services and benefits are derived from stronger market power.

5.2. Shared business systems- this is a shared approach to owning and developing systems but falls short of integration of service delivery. Candidates for this approach include IT platforms, GIS, consents systems, document management systems and rating systems;

5.3. Shared services – this approach takes the shared system approach one step further and integrates service delivery.

6. In Mr Winder’s experience, for joint service provision to be successful there must be:

6.1. common and agreed business objectives

6.2. common and agreed service standards

6.3. clear accountability, governance and management rules

6.4. an agreed investment framework, and

6.5. a mature approach to priority setting.

7. The establishment of the HBLASS will provide the structure around which these requirements can be developed.

Next Steps

8. The Chief Executive Officer of Hastings District Council (HDC) has written to HBRC advising of a meeting of CEOs in late September to discuss the next steps for the HBLASS. Additionally staff at HDC are preparing three separate reports for the CEOs’ consideration.

8.1. Draft documentation – Constitution, Draft Statement of Intent

8.2. Draft work programme

8.3. Identification of services to initially consider

9. Following this meeting information will be brought to HBRC to assist in a final decision on participating in the HBLASS. By that time details of the company, how it will operate, and the benefits to HBRC, will be available.

10. It is proposed that Paul Drury, Group Manager Corporate Services, be the key HBRC staff contact for this process. It is likely that the majority of potential shared services that HBRC would wish to be involved with fall under the broad corporate services heading.

Decision Making Process

11. Council is required to make a decision in accordance with the requirements of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained in Part 6 Sub Part 1 of the Act in relation to this item and have concluded the following:

11.1. The decision does not significantly alter the service provision or affect a strategic asset.

11.2. The use of the special consultative procedure is not prescribed by legislation.

11.3. The decision does not fall within the definition of Council’s policy on significance.

11.4. The persons affected by this decision are all ratepayers in the region.

11.5. Options that have been considered include other forms of organisational efficiency and these were consulted on through the Draft Long Term Plan

11.6. The decision is not inconsistent with an existing policy or plan.

11.7. Given the nature and significance of the issue to be considered and decided Council can exercise its discretion and make a decision without consulting directly with the community or others having an interest in the decision.

Recommendations

The Corporate and Strategic Committee recommends that Council:

2. Instructs the Chief Executive to liaise with staff from the region’s territorial authorities in developing the initial documentation for the establishment of a Hawke’s Bay Local Authority Shared Services company, and to bring this back to Council for further consideration.

Paul Drury

Group Manager

Corporate Services

Liz Lambert

Group Manager

External Relations

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 12 September 2012

SUBJECT: National Policy Statement for Freshwater Management – Implementation Programme

Reason for Report

1. The purpose of this report is to present the Implementation Programme for the National Policy Statement for Freshwater Management (the ‘NPSFM’) to the Corporate and Strategic Committee and for the Committee to recommend it to Council for adoption.

2. The NPSFM requires that a staged implementation programme be formally adopted by Council and publicly notified if the Council is satisfied that it is impracticable for it to complete implementation of the NPSFM fully by 31 December 2014.

National Policy Statement for Freshwater Management 2011

3. The NPSFM came into effect on 1 July 2011. The NPSFM charges regional and unitary councils with achieving the objectives relating to freshwater quality and quantity (see Attachment 1 for a fuller description).

4. Section E of the NPSFM contains a policy relating to the progressive implementation of the NPSFM. Policy E1 states:

a) This policy applies to the implementation by a regional council of a policy of this national policy statement.

b) Every regional council is to implement the policy as promptly as is reasonable in the circumstances, and so it is fully completed by no later than 31 December 2030.

c) Where a regional council is satisfied that it is impracticable for it to complete implementation of a policy fully by 31 December 2014, the council may implement it by a programme of defined time-limited stages by which it is to be fully implemented by 31 December 2030.

d) Any programme of time-limited stages is to be formally adopted by the council within 18 months [ie: by 12 November 2012] of the date of gazetting of this national policy statement, and publicly notified.

e) Where a regional council has adopted a programme of staged implementation, it is to publicly report, in every year, on the extent to which the programme has been implemented.

5. While the Council’s Long Term Plan contains a number of statutory plan changes that will give effect to the NPSFM, those plan changes will not be fully completed (operative) by 31 December 2014. Council is therefore required to develop and adopt an Implementation Programme before 12 November 2012 and then give public notice that the Implementation Programme has been adopted.

6. The Programme is not subject to the RMA’s submission process. There is no opportunity for public submissions to be made on the adopted Programme.

7. Once adopted, annual reporting on the Implementation Programme is required until the Programme is completed.

8. Exactly how a Programme looks and what it contains is up to the Council’s own discretion. The Ministry for the Environment’s Guide to the implementation of the NPSFM suggests that an Implementation Programme may outline:

8.1. The consultation strategy/programme

8.2. The prioritising of plan changes by catchment and/or management issues

8.3. The expected time for key milestones, such as notification of plan changes setting limits, timings for hearings, and timing for any review of consents.

9. As well as plan changes, the Programme may outline other activities, initiatives and methods to be implemented, indicating timing, priorities and resourcing. Examples include consent reviews, capital works initiatives, changes to the council’s own work programmes and/or landowner liaison programmes.

10. Implementation programmes will necessarily be flexible; for example dates may change.

Hawke’s Bay Land and Water Management Strategy

11. The 2011 Hawke’s Bay Land and Water Management Strategy provides a non-statutory overarching direction for the management of land and water in the region. It was developed through multi-party Reference Group process reflecting that there are many agencies that have a role to play in achieving the desired environmental and economic outcomes. The Strategy has a focus on future viability and resilience of the region’s land and the regional long term prosperity through sustainable land use and water management while maintaining overall quality of freshwater ecosystems for agreed management objectives.

12. A number of the Strategy’s policies need to be embedded into the RPS and regional plans in order to provide decision-makers with context to the catchment-specific objectives and limits setting and assessing resource consent applications. By embedding relevant LAWMS policies in the RPS and regional plans, this ensures those policies are contained in influential statutory planning documents that guide not only Regional Council decision-making, but also decisions made by city and district councils when preparing district plans and considering resource consent applications.

13. It identifies a range of possible policies and actions for each of the objectives and listed the groups and sectors that have a role to play in the implementation of the Strategy. Annual action plans are to be prepared and reviewed by a Reference Group that would oversee its implementation.

14. Implementing the NPSFM and preparing an Implementation Programme was an identified action in the Hawke’s Bay Land and Water Management Strategy.

Giving Effect to the NPSFM

15. Staff have reviewed the Regional Resource Management Plan’s objectives and policies and assessed them in terms of the degree to which they give effect to the NPSFM. The Regional Resource Management Plan (RRMP), which includes the Regional Policy Statement, became operative in 2006. While the RRMP contains broad freshwater management objectives and water quality guidelines (both at a regional and catchment specific level for a number of parameters), and water allocation limits and minimum flows for specific reaches of river in a number of catchments, these need to better align with the NPSFM and the Land and Water Management Strategy.

16. The assessment against the NPSFM is shown in Attachment 2. The last two columns in the table in Attachment 2 show the programmes that are in place that will contribute to implementation of the NPSFM and additional programmes that will be required.

17. The gaps that have been identified are as follows.

17.1. Some catchments do not have water quantity allocation limits and minimum flows. This is generally the case where there is little demand for taking of water. These will be addressed as part of a regional review using default methodologies which would likely err on the conservative side.

17.2. Where over-allocation (in water quantity terms) exists, there is no target timeframe for meeting the allocation limits except for at the time of consent renewals. The Regional Council has a history of using common expiry dates so this is a feasible mechanism. The scheduled Tukituki catchment plan change and the Greater Heretaunga / Ahuriri Land and Water plan change will address this matter.

17.3. There are existing policies encouraging efficient allocation and use of water but innovative approaches using shared or global consents could be incorporated into the planning frameworks as additional mechanisms.

17.4. The proposed catchment-based plan changes address the requirements for improved integrated management of freshwater and the use and development of land, specifically the setting of water quality targets and limits.

17.5. The RPS and regional plan are light on identifying and protecting significant values of wetlands. This should be addressed on a whole-of-region basis through the biodiversity strategy and a subsequent RPS change. Some methods (e.g. additional rules) to protect those significant values would require a change to the regional plan.

17.6. The RPS and regional plan are also light on identifying outstanding freshwater bodies. This should also be addressed on a whole-of-region basis through an RPS review. (It is noted that this matter was discussed at some length by the Regional Planning Committee in relation to comments received on the Draft RPS Plan Change 5. There is a lack of clarity around the criteria for defining outstanding freshwater bodies, whether it has a regional or national focus, and the implications for the protection of water quality with regard to the NPS. At this stage, staff consider that it would be prudent to not include ‘outstanding freshwater body’ provisions via this change process, and to undertake it as a separate exercise. The Implementation Programme reflects this. However it can be discussed further at the next RPC meeting on 19 September).

Proposed Implementation Programme

18. The Implementation Programme proposed for Council’s adoption is provided as a standalone document and is contained in Attachment 3.

19. It draws on the activities detailed in the Council’s Long Term Plan and the strategic direction provided in the Hawke’s Bay Land and Water Management Strategy.

Decision Making Process

20.1. The decision does not significantly alter the service provision or affect a strategic asset.

20.2. The use of the special consultative procedure is not prescribed by legislation but the NPSFM does require public notice to be given of the decision to adopt the Implementation Programme, and there will be the opportunity for any person to make submissions on the subsequent proposed changes to the RPS and regional plans outlined in the Implementation Programme.

20.3. The decision does not fall within the definition of Council’s policy on significance.

20.4. The persons affected by this decision are all persons with an interest in the region’s management of natural and physical resources under the RMA.

20.5. There is no option but to prepare an implementation programme and notify its adoption given that the NPSFM will not be fully implemented by 31 December 2014.

20.6. The decision is not inconsistent with an existing policy or plan.

Recommendations

The Corporate and Strategic Committee recommends that Council:

2. Adopts the Implementation Programme for the National Policy Statement for Freshwater Management.

Gavin Ide

Team Leader Policy

Helen Codlin

Group Manager

Strategic Development

Attachment/s

1	Key Features of the National Policy for Freshwater Management	Under Separate Cover
2	Assessment of the Regional Resource Management Plan	Under Separate Cover
3	National Policy Statement for Freshwater Management Implementation Programme for Hawke's Bay Regional Council	Under Separate Cover

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 12 September 2012

SUBJECT: 2011/12 Human Resources Report

Reason for Report

1. This agenda item is to provide Council with a brief overview of some of the key human resources metrics recorded each year as part of the internal human resources report. It relates to the year from 1 July 2010 to 1 July 2011. The reporting time is slightly changed from last year to incorporate a more timely report which includes any new positions approved from 1 July.

Key Metrics

Staff Numbers (Previous year in brackets)

2. As at 1 July 2012 180 FTE (171 FTE), made up of:

2.1. Dalton Street (including Wairoa and Waipukurau offices) 150 (143) FTE

2.2. Works Group (Taradale and Waipukurau) 30 (28) FTE

3. Changes to Dalton Street staff numbers include the addition of three new resource technician positions approved in the long term plan

4. Staff turnover for the year ending 30 June 2012 was 7.8% (2011 - 6.3%). A total of 14 (2011-11) staff left Council’s employ during the year (excludes redundancy and parental leave). The level of staff turnover continues to be very low and compares very favourably with the national average for equivalent local government entities that provided data to the Online Executive Search National Survey: Local authorities 10.3% (National: 16.4%).

5. There were six redundancies over the period.

6. There were four staff transferred to Hawke’s Bay Tourism.

7. Five present staff were appointed to other vacant roles within Council and continue their career development with us.

Staff Leave Usage

8. For the year ending 30 June 2012, the average number of sick leave days (Dalton street staff) taken was 5.5, down from an average of 6.5 days the previous year. The usage of sick leave is at an acceptable level. It does still seem that younger staff view sick leave as an entitlement to use rather than as an ‘insurance’. Either that or the young are more prone to sickness!

9. For the year ending 30 June 2012, the average number of annual leave days (Dalton street staff) taken was 18. Annual leave usage is an issue that does need to be monitored as a small number of staff do seem reluctant to use an adequate proportion of their annual leave allocation.

Average Age – Tenure

10. For the year ending 30 June 2012, the average age of Dalton Street staff was 45 and the number of years working for Council was 10.

11. For the year ending 30 June 2012, the average age of Works Group staff was 49 and the number of years working for Council was 13.

Age Profile

Age	20-25	26-30	31-35	36-40	41-45	46-50	51-55	56-60	61-65	65+
Dalton Street	8	8	20	20	23	21	23	10	8	5
Operations	1	0	1	4	4	5	6	4	0	2

12. The increasing average age of the work force continues to be a concern in terms of work force planning and succession. Succession planning remains an important aspect of HR planning in an attempt to ‘plan’ for retirement issues.

13. Succession planning is consciously being undertaken for several key positions as the incumbent nears ‘retirement’.

Work Related Accidents (an incident where no injury occurs is also recorded as an ‘accident’)

14. Dalton Street: 11 accidents and total of 18 days off work.

15. Operations: 14 accidents and total of 108 days off work.

16. The majority of accidents resulted in no time off work.

17. There were two serious harm accidents during the year which required notification to the Department of Labour. In both cases, after investigation, the Department advised that no further action on their part would be undertaken.

18. ACC have reintroduced ‘experience rating’ for organisations which means our accident record is compared against other similar organisations and then an assessment is made whether a discount or loading is applied to the organisation’s ACC levies.

19. At present our accident record is favourable and we receive a discount on our levies. That may be affected next year by the two serious harm accidents that occurred this year.

20. We are also part of ACC’s Workplace Safety Management Practices (WSMP) programme and have just completed a biennial audit. This has confirmed that the Council is at a tertiary level (highest level achievable) for discount purposes resulting in a 20% discount on our ACC levies.

Staff Training

21. The training budget for the year was 2.5% of the salary budget. The corporate training budget, which is applied to identified ‘corporate needs’, has once again focused on leadership development, i.e. identification of present or potential leaders within the organisation.

22. Using the training budget more effectively is a prime focus and using technology e.g. webinars is becoming a good option alongside the more traditional methods.

23. A full ‘staff climate’ survey will be undertaken this year.

Industrial

24. All Managers are on individual employment agreements (IEAs).

25. The employment conditions of staff in Council are covered by 2 collective employment agreements (CEA) and individual employment agreements (IEAs).

26. There is one CEA for staff based at Dalton Street and one for catchment staff at the Works Group.

27. The CEA at Dalton Street has 42 staff party to it, with the Staff Union representing the vast majority, a small number are PSA members.

28. 62 staff whose work is covered by the CEA have negotiated IEAs.

Decision Making Process

29. Council is required to make a decision in accordance with Part 6 Sub-Part 1, of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within this section of the Act in relation to this item and have concluded that, as this report is for information only and no decision is to be made, the decision making provisions of the Local Government Act 2002 do not apply.

Recommendation

1. That the Corporate and Strategic Committee receives the 2011-12 Human Resources report.

Viv Moule

Human Resources Manager

Andrew Newman

Chief Executive

Attachment/s

1 View

2011-12 HR Highlights - Managers Report

2011-12 HR Highlights - Managers Report

Attachment 1

Staff Numbers 2009 to 2012 (1 July) - Full time equivalent (FTE)

2012: Dalton Street: 150 FTE; Operations: 30 FTE; Total: 180 FTE

Comment: Increase includes CDEM roles commencing 1 July 2011 (3), Resource Technician (3), Scientist (1)

Staff Turnover % Rate 1994 to 2012

2012: 7.8% National ave: 16.4%; Local government 10.3% (Report - Online Executive Search Ltd)

Staff Average Age / Time with Council

	Average Age	Average Tenure (Years)
Dalton Street	45	10
Works Group	49	13

Staff Age Profile

	20-25	26-30	31-35	36-40	41-45	46-50	51-55	56-60	61-65	65+
Dalton St	8	8	20	20	23	21	23	10	8	5
Operations	1	0	1	4	4	5	6	4	0	2

Average Staff Replacement Costs (Readily Identifiable Costs Only – eg Advertising, Interview and Relocation Costs)

Staff Sick Leave Usage - Dalton Street

2011/12: Average Number of Sick Leave Days taken: 5.5 (7) days

Total number of sick leave days used: 922 (928) days

Comment: Council grants 10 days sick leave per annum which can accumulate if not used.

Average Annual Leave Usage - Dalton Street

Dalton Street = 18 days (18.6 days 10/11)

Operations Group = 25 days (25 days 10/11)

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 12 September 2012

SUBJECT: Public Transport Update

Reason for Report

1. This agenda item provides the Committee with an update on Council’s public transport services, including trends since the previous update in May 2012. The report contains patronage graphs which are updated each month and provided to this Committee and the Regional Transport Committee.

General Information

2. The overall performance of the bus service continues to be positive, with good passenger growth and farebox recovery levels. May 2012 passenger trips reached a record high of 72,178. Total passenger trips for January to July 2012 were 418,561, 23% higher than the same period last year.

Total Passenger Trips

3. The following graph shows total passenger trips from February 2009 to July 2012:

Diagram 1 – Total Passenger Trips – February 2009 – July 2012

4. Since 2009 the total numbers of trips per year and monthly averages have steadily trended upwards, as follows:

Total Yearly Trips Monthly Average

2009 434,231 36,186

2010 512,657 42,721

2011 616,198 51,350

2012 (Jan-Jul) 418,561 59,794

Capacity

5. This graph shows the seat capacity utilised on a monthly basis from July 2011 to July 2012. The average utilised capacity for this period was 42%.

Diagram 2 – Capacity – July 2011 – July 2012

SuperGold Card Trips

6. The following graph shows the number of SuperGold cardholder trips made from July 2011 to July 2012. SuperGold cardholders continue to make very good use of this scheme.

Diagram 3 – SuperGold Card Trips – July 2011 – July 2012

Improvements to Bus Services

7. The increased services on Route 12 (Napier-Hastings) continue to be well patronised, with transport operator Go Bus Ltd reporting heavy loads at peak times.

7.1 Peak-time services on Route 20 (Hastings-Flaxmere) are also carrying heavy loads, (both passengers and prams/strollers) often with standing room only. A low cost solution to address the overloading is being considered.

7.2 The Route 15 Hopper service (Napier-Ahuriri-Westshore) is now permanent and continues to prove popular with Westshore/Ahuriri residents and visitors to the region. The new route and hourly timetable has been well received by passengers and the Ahuriri Business Association.

Infrastructure

Bus Stops

8. Stage 1 of a project to install goBay signage at all bus stops with an existing bus stop pole is due to begin later in the year. All bus stops have been numbered and the design of the signs has been approved by the New Zealand Transport Agency (NZTA). Stage 2 of the project, which would have seen bus stop poles and signage installed at all bus stops, in line with the adopted hierarchy of bus stops outlined in the Regional Public Transport Plan, is unlikely to proceed in Napier, due to approval for signage being declined by Napier City Council. The signs were deemed by NCC to be for advertising purposes as opposed to information purposes.

Bikes on Buses

9. By early September bike racks will have been installed on 14 goBay buses. Bikes are carried free of charge, however passengers/cyclists are responsible for loading and unloading their own bikes. Bikes are insured by Council’s bus operator to a maximum of $1500 while being carried on the bike rack.

Hawke’s Bay Regional Council recently funded the purchase and installation of an iWay bike/information shelter at the main bus stop in Havelock North village. A second shelter is planned for the main Hastings terminus on Eastbourne Street.

The bike racks and bike shelters will make public transport more accessible to a greater number of people who may not have a bus stop within walking distance of their home or final destination. They will also make the cycleways and pathways more accessible for recreational cyclists.

Other

10. A recent fare review saw fares increase by approximately 4% from 1 September. A small annual increase over the next three years was deemed necessary to meet the target of a 40% farebox recovery by 2014 (as stated in the Regional Public Transport Plan 2011-14).

11. The Commuter Express was recently rebranded as the ‘Express’ and bus wraps designed to showcase the much loved icons of Napier and Hastings and to promote the message ‘city to city in 35 minutes’. Feedback from passengers and road users has been positive as the vehicles are now very eye-catching.

Total Mobility Update

12. Below is a table showing details of Total Mobility client numbers and expenditure to date for 2012.

Diagram 4 – Total Mobility Statistics – Jan 2012 to July 2012

Decision Making Process

13. Council is required to make a decision in accordance with Part 6 Sub-Part 1, of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within this section of the Act in relation to this item and have concluded that, as this report is for information only and no decision is to be made, the decision making provisions of the Local Government Act 2002 do not apply.

Recommendation

1. That the Corporate and Strategic Committee receives the Public Transport Update.

Megan Welsby

Sustainable Transport Coordinator

Carol Gilbertson

Transport Manager

Attachment/s

There are no attachments for this report.

Agenda Item	Action	Person Responsible	Due Date	Status Comment
5. Action Items	Opportunities under investigation and under way for Shared Services	AN/LL		Feedback from LTP submissions process to provide context for C&S paper for 12 September - outlining Council’s options

Agenda Item	Action	Person Responsible	Due Date	Status Comment
10. Peter Winder Presentation – Shared Services Report	Update on opportunities under investigation and under way	AN/LL		Feedback from LTP submissions process to provide context for C&S paper for 12 September - outlining Council’s options

Health Checks	Eye Tests	Flu Injections	Buccaline Tablets
11 (4-2011)	22 (10-2011)	63 (42-2011)	30 (25-2011)

Survey Comparator	Base Salary	Total Remuneration
Local Government	100.9% (97.6%)	101.1% (97.5%)
Job Code	101.1% (98.8%)	101.3% (98%)

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