2016/2017 ANNUAL REPORT Planning Urban Water Strategy – tackling climate change and planning The Corporation released its Urban Water Strategy, for managing the water supply and demand balance over the next 50 years. This long-term view is a component of the Corporation’s overall planning processes, which includes planning for our for drought preparedness, financial expenditure, asset management, water quality and wastewater. The strategy is also important in the context of the Gippsland Region Sustainable Water Strategy, which considers the needs of other water future, users such as irrigators and the environment. ready to respond South Gippsland Water understands that Pricing Submission, Engagement and Outcomes – livability, jobs, water is fundamental to our communities, economy and growth that our role is vital in order to support a South Gippsland Water has completed its most comprehensive program to date in preparing its five year plan for prosperous economy, thriving communities services and prices for submission to the Essential Services Commission. The community engagement process and a healthy environment. Water is vital, undertaken to support this submission was primarily completed during the 2016/17 financial year. Consultation included it is essential to the social fabric of our the establishment of a Customer Advisory Panel to play a pivotal role in providing advice and making recommendations to the Corporation for input into the submission. communities, our health and wellbeing. As part of this submission, foundations have been laid for the Corporation’s planning and investment structure to The liveability of our region, its townships migrate to a ‘Customer Outcome’ based model. and industries, relies on access to safe, dependable and affordable water supplies. The Corporation is committed towards meeting the directives set out in the ‘Water for Victoria’ plan and Water Minister’s strategic expectations and deliverables. It is poised at the ready, to respond to future Carbon Pledge – tackling climate change South Gippsland Water has made a greenhouse gas emissions reduction pledge of 15% by 1 July 2025. The Corporation challenges, including those of climate will also continue its planning toward achieving net zero carbon emissions by 2050. To achieve these goals, the variability, population growth and a more organization has identified a number of solar energy projects at key sites across our region. open Victorian water grid and market place. A Year of Planning for Key Strategic Outcomes South Gippsland Water has embarked on a program of deep and wide engagement and consultation in which customers have been clear in expressing their desire for South Gippsland Water to proactively and collaboratively plan for the future. Customers confirmed that this planning should encompass issues and pressures Continued Efficiency Gains – liveability, jobs, economy and growth such as climate change, population growth, The Corporation continues to utilise partnerships and efficiency gains in order to deliver affordable and quality water and wastewater services to the region. water security and ageing infrastructure. 2 South Gippsland Water Proactive and collaborative planning Urban Water Strategy – tackling climate change and planning The Corporation released its Urban Water Strategy, for managing the water supply and demand balance over the next 50 years. This long-term view is a component of the Corporation’s overall planning processes, which includes planning for drought preparedness, financial expenditure, asset management, water quality and wastewater. The strategy is also important in the context of the Gippsland Region Sustainable Water Strategy, which considers the needs of other water users such as irrigators and the environment. Lance Creek Water Connection-realising the potential of the state water grid Preparations and planning for construction of the Lance Creek Water Connection project are complete and pipeline supply and construction has started. The project has a total cost of some $43 million and has been successful in acquiring state government funding of $30 million. It will secure the water supply needs of Korumburra, Poowong, Loch and Nyora over the next 50 years. Pipelines will connect these townships with the Lance Creek reservoir, which has an existing connection to the Melbourne Water Supply System via Cardinia Reservoir. With the Lance Creek Water Connection progress, further exploratory work has commenced to identify the optimum timing for purchase of additional Bulk Entitlement from the Greater Yarra / Thompson River (Melbourne) system. Pricing Submission, Engagement and Outcomes – livability, jobs, economy and growth South Gippsland Water has completed its most comprehensive program to date in preparing its five year plan for services and prices for submission to the Essential Services Commission. The community engagement process undertaken to support this submission was primarily completed during the 2016/17 financial year. Consultation included the establishment of a Customer Advisory Panel to play a pivotal role in providing advice and making recommendations to the Corporation for input into the submission. As part of this submission, foundations have been laid for the Corporation’s planning and investment structure to migrate to a ‘Customer Outcome’ based model. Key steps forward on major environment and social initiatives Carbon Pledge – tackling climate change South Gippsland Water has made a greenhouse gas emissions reduction pledge of 15% by 1 July 2025. The Corporation will also continue its planning toward achieving net zero carbon emissions by 2050. To achieve these goals, the organization has identified a number of solar energy projects at key sites across our region. Diversity and Inclusion Plan – leadership and culture, aboriginal values South Gippsland Water continues to work with the Gippsland Regional Water Alliance and traditional owner groups, both the Bunurong and Gunaikurnai to finalise a Partner Action Plan. The action plan objectives are to respect the Bunurong and Gunaikurnai Traditional Owners of land and water, foster mutual respect, support economic development opportunities and assist customers in hardship. The year has seen progress towards the implementation of the current Diversity and Inclusion Plan, including establishing further strategies and goals, in line with the Minister’s strategic expectations, to increase gender equality and Aboriginal inclusion, participation and engagement. Continued Efficiency Gains – liveability, jobs, economy and growth The Corporation continues to utilise partnerships and efficiency gains in order to deliver affordable and quality water and wastewater services to the region. Annual Report 2017 3 Vision, Mission and Values VISION Our future ideal is….. To be widely recognised as an exemplary service provider and valued as an essential contributor to regional development and resource sustainability. MISSION Our core purpose is….. As South Gippsland’s Regional Urban Water Corporation; to secure and manage quality water and wastewater systems, in an environmentally sustainable and cost efficient manner. CORE VALUES Integrity – earning and sustaining public trust through: • Freedom from conflicts of interest • Using powers responsibly • Honesty and transparency • Reporting improper conduct • Respect for others • Freedom from discrimination, harassment and bullying Accountability – accepting responsibility for decisions and actions by: • Working to objectives • Acting in a transparent manner • Achieving best use of resources • Being open to appropriate scrutiny Impartiality – acting objectively: • Without bias or self interest • Based on merit, facts and fair criteria • By implementing policies and programs equitably Service - providing the best standards of service to: • Our customers • Government • Local and regional community • Board Directors and Corporation staff • The broader water industry Operational responsibility – the way we run our business • Operating our business in a sustainable manner • Behaving as a good corporate citizen • Striving to minimise the environmental impact of our operations • Committing to safety in the workplace • Prioritising highest standards of public health 4 South Gippsland Water Table of Contents PLANNING FOR OUR FUTURE ...........................................................2 SOCIAL SUSTAINABILITY ...................................................................19 VISION, MISSION AND VALUES ..........................................................4 Collaboration Within the Water Sector ........................................... 19 Community Service Obligations - Financial Assistance OUR REGION .........................................................................................6 to Eligible Customers and Pensioners ........................................... 19 South Gippsland – The Region ...........................................................6 Customer Consultation ...................................................................... 19 Nature and Range of Services Provided ..........................................6 Lance Creek Water Connection Engagement .............................. 19 STATEMENT BY THE MANAGING DIRECTOR AND CHAIR ...........8 Pricing Submission Engagement ......................................................20 Schools Education Programs ...........................................................20 THE BOARD ...........................................................................................9