Adopted Report of the Special Budget Committee Meeting held on Friday 2 June 2017 at 9am
City of Gold Coast Council Chambers 135 Bundall Road Surfers Paradise
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Index Adopted Report Special Budget Committee Meeting Friday 2 June 2017
Item Direct. File Page Subject
1 OCEO FN334/375/19(P1) 5 Leave of Absence / Apologies
2 OCEO FN334/375/19(P1) 6 Confirmation of Report from Special Budget Committee meeting held on 29 May 2017 as a true and correct record
3 External Presentations
9.00am Surfers Paradise Alliance
9.30am Connecting Southern Gold Coast
10.00am Study Gold Coast
11.00am Gold Coast Tourism
Closed Session
4 EDMP PD330/99/26(P1) 9 2017-18 Tourism and Economic Diversification Component of the Differential General Rate
5 EDMP PD330/292/13/01(P1) 38 More Gold Coast
6 EDMP PD330/398/-(P21) 57 2017-18 Study Gold Coast Funding
Special Rates for Controlled Entities (refer to Special, Separate & Differential Rates / Charges document and recommendations listed):- • Broadbeach Management and 7 OCEO FN334/375/19(P1) 58 Promotion Special Rate • Surfers Paradise Management and Promotion Special Rate • Southern Gold Coast Management and Promotion Special Rate
8 EDMP CS105/274/2017(P1) 61 New Major Event Opportunity (2018-2020)
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Index Adopted Report (Continued) Special Budget Committee Meeting Friday 2 June 2017
Item Direct. File Page Subject
9 OCEO FN334/375/19(P1) 74 Capitalisation of Type 1 Business Activities
10 OS LG282/07(P2) 75 Leases for Council parkland Areas and Security Gatehouse – Sovereign Islands
11 OCEO FN334/375/19(P1) 92 Consider Responses to Questions from Review of Draft Budget Documents
General Business
12 FN334/375/19(P1) 93 Staffing Matter
KEY: OCEO - Office of the Chief Executive Officer CI - City Infrastructure GCWW - Gold Coast Water & Waste CS - Community Services OS - Organisational Services EDMP - Economic Development & Major PE - Planning & Environment Projects
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Please note that the Special Budget Committee recommendations are reflected in the 2017-18 budget which was adopted by Council with the resolution set out below.
ADOPTED BY SPECIAL COUNCIL 19 JUNE 2017
RESOLUTION G17.0619.001 moved Cr Tate seconded Cr Gates
1 Council adopt the Budget for the financial year 2017-18 as contained in the following attachments: a The Accrual Budget & Statement of Income and Expenditure 2017-18 to 2026-27 (Attachment 1) b The Statement of Cash Flows – Estimated 2016-17 and Budget 2017-18 to 2026-27 (Attachment 2) c The Statement of Financial Position – Estimated 2016-17 and Budget 2017-18 to 2026-27 (Attachment 3) d The Statement of Changes in Equity – Estimated 2016-17 and Budget 2017-18 to 2026-27 (Attachment 4). e The attached document entitled Annual Plan 2017-18 including the following plans, statements and policies contained therein; i City Operational Plan 2017-18 ii Statement of Estimated Financial Position 2016-17 iii Long-term Financial Forecast 2017-18 iv Gold Coast Water Annual Performance Plan 2017-18 v Gold Coast Waste Management Services Annual Performance Plan 2017-18 vi Debt Policy 2017-18 vii Revenue Policy 2017-18 (adopted by Council on 13 June 2017) viii Statement of Reserves 2017-18
f The attached document entitled Revenue Statement & Resolutions of Rates & Charges 2017-18 and recommendations contained therein (Pink Pages). g The attached document entitled Register of Fees & Charges 2017-18 (Green Pages). 2 That Council adopt the following other budget documents; a Four Year Capital Works Program 2017-18 to 2020-21 noting that projects listed in 2017-18 are funded as part of the 2017-18 Budget, whereas, projects listed in years 2018-19 to 2020-21 represent a notional capital works program and may be subject to change depending on available funding and priorities. b Miscellaneous Recommendations of Special Budget Committee To Be Adopted By Council (Attachment 5). c The preliminary Local Area Works & Services Program 2017-18 (Attachment 6). d The Total Asset Management Plan 2017-18 to 2026-27 (Attachment 7) 3 That Council endorse the continuation of uncompleted capital works carried forward from 2016-17 and that such works be facilitated within the initial 2017-18 Budget estimates pending the finalisation of accounts for 2016-17.
CARRIED BY SUPER MAJORITY Special Council Meeting 19 June 2017 5 Special Budget Committee Meeting 2 June 2017 Adopted Report
ATTENDANCE
Cr T R Tate (Chairperson) Cr D Gates Cr W M A Owen-Jones Cr C M Caldwell Cr K L Boulton Cr P J Young Cr D M Crichlow OAM Cr G J Baildon AM Cr R La Castra Cr G M Tozer Cr P A Taylor Cr H H C Vorster Cr P C Young Cr D I McDonald Cr G M O’Neill
Mr D R Dickson Chief Executive Officer Left at 1.41pm Mr A J McCabe Chief Operating Officer Mr A Twine Director City Infrastructure Ms A Ewens Director Community Services Mr D Scott Director Economic Development & Major Projects Mr P Heaton Director Gold Coast Water & Waste Mr G Potter Director Organisational Services Ms D Currie Director Planning & Environment
Mr J Blair Manager Corporate Finance
1. LEAVE OF ABSENCE
Nil.
PRESENTATIONS
9.05am Surfers Paradise Alliance (Special Rate) Mike Winlaw (Chief Executive Officer) Laura Younger (Chair)
9.45am Connecting Southern Gold Coast (Special Rate) Peter Doggett (Chief Executive Officer) Ben Crompton (Acting Chair)
10.35am Study Gold Coast Shannon Willoughby (Chief Executive Officer) Professor Adam Shoemaker (Vice Chancellor & President, Southern Cross University)
11.15am Gold Coast Tourism Paul Donovan (Chairman) Dean Gould (Executive Director Corporate Reputation and Strategy) Jan Hutton (Chief Marketing Officer) Special Council Meeting 19 June 2017 6 Special Budget Committee Meeting 2 June 2017 Adopted Report
ITEM 2 OFFICE OF THE CHIEF EXECUTIVE OFFICER CONFIRMATION OF REPORT FROM SPECIAL BUDGET COMMITTEE MEETING HELD ON 29 MAY 2017 AS A TRUE AND CORRECT RECORD FN334/375/19(P1)
RECOMMENDATION
That the report from the Special Budget Committee meeting held on 29 May 2017 be confirmed as a true and correct record.
COMMITTEE RECOMMENDATION moved Cr Gates seconded Cr Pauline Young
That the report from the Special Budget Committee meeting held on 29 May 2017 be confirmed as a true and correct record.
CARRIED
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ITEM 3 OFFICE OF THE CHIEF EXECUTIVE OFFICER EXTERNAL PRESENTATIONS FN334/375/19(P1)
Presentations were made by the following entities:-
• Surfers Paradise Alliance • Connecting Southern Gold Coast
The meeting was adjourned at 10.25am The meeting resumed at 10.35am
• Study Gold Coast • Gold Coast Tourism
Please refer to Items 4, 6 and 7 for the relevant committee recommendations for the above entities.
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CLOSED SESSION LOCAL GOVERNMENT ACT 2009 AND SUPPORTING REGULATIONS
PROCEDURAL MOTION moved Cr Tate seconded Cr Gates
That the Committee move into Closed Session pursuant to section 275 (1) of the Local Government Regulation 2012, for the consideration of the following items for the reasons shown:-
Item Subject Reason
4 2017-18 Tourism and Economic Diversification Budgetary Matters Component of the Differential General Rate
5 More Gold Coast Budgetary Matters
6 2017-18 Study Gold Coast Funding Budgetary Matters
7 Special Rates for Controlled Entities Budgetary Matters (refer to Special, Separate & Differential Rates / Charges document and recommendations listed):- • Broadbeach Management and Promotion Special Rate • Surfers Paradise Management and Promotion Special Rate • Southern Gold Coast Management and Promotion Special Rate
8 New Major Event Opportunity (2018-2020) Budgetary Matters
9 Capitalisation of Type 1 Business Activities Budgetary Matters
10 Leases for Council Parkland Areas and Security Budgetary Matters Gatehouse – Sovereign Islands
11 Consider Responses to Questions from Review of Budgetary Matters Draft Budget Documents
CARRIED
The meeting was adjourned at 12.51pm The meeting resumed at 1.27pm
PROCEDURAL MOTION moved Cr Tozer seconded Cr Owen-Jones
That the Committee move into Open Session.
CARRIED
Following resumption into Open Session, Items 4 to 10 were moved and carried as shown on the following pages.
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ITEM 4 ECONOMIC DEVELOPMENT AND MAJOR PROJECTS 2017-2018 TOURISM AND ECONOMIC DIVERSIFICATION COMPONENT OF THE DIFFERENTIAL GENERAL RATE PD330/99/26(P1) Refer 74 page attachment
1 BASIS FOR CONFIDENTIALITY
1.1 I recommend that this report be considered in Closed Session pursuant to section 275 (1) of the Local Government Regulation 2012 for the reason that the matter involves (a) the local government’s budget
1.2 I recommend that the report and attachments be deemed a non-confidential document except those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.
2 EXECUTIVE SUMMARY
Not Applicable.
3 PURPOSE OF REPORT
The purpose of this report is to present Council with an overview of the proposed allocation of the Tourism and Economic Diversification Component of the Differential General Rate (TEDCDGR) for 2017-18 including proposed contributions to Gold Coast Tourism (GCT), Study Gold Coast (SGC) and to support activities proposed for 2017-18 as part of the ongoing delivery of the Destination Tourism Management Plan (DTMP).
4 PREVIOUS RESOLUTIONS
Special Budget Committee, at its meeting on 3 & 7 June 2016 resolved in part: G16.0624.002 (Budget adoption resolution G16.0624.002.);
1 That the report/attachment be deemed a non-confidential document except those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009. 2 That the CEO enter into a funding agreement with Gold Coast Tourism Corporation, on terms and conditions satisfactory to the CEO, including the following: a) agreement to commence on 1 July 2016 for a period of five years concluding 30 June 2021. b) the funding amount to be $13,500,000 in 2016-17 with provision for an annual increase of $500,000 representing CPI, as per the funding schedule in section 7, table 7 c) noting that the annual decision of Council to allocate funding is based on future annual budget submissions d) that a further funding agreement be considered by Council prior to July 2020. 3 That the Gold Coast Tourism Corporation six month extension from 1 July 2016 to 30 December 2016 be superseded by the new five-year funding agreement from 1 July 2016 to 30 June 2021.
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ITEM 4 (Continued) 2017-2018 TOURISM AND ECONOMIC DIVERSIFICATION COMPONENT OF THE DIFFERENTIAL GENERAL RATE PD330/99/26(P1)
4 That Council is entering into the funding agreement with Gold Coast Tourism Corporation as an exercise of its Beneficial Enterprise Powers. 5 That an amount of $20,535,850 be raised via the Tourism Component of the Differential General Rate for the purpose of delivering tourism related projects and activities to support the implementation of the Destination Tourism Management Plan. 6 That a recurrent core amount of $16,997,350 be allocated as follows; Contribution to Gold Coast Tourism $13,500,000 EDMP Tourism Program $1,997,650 International Relations - EDMP $64,700 International Relations – Mayor’s Office $50,000 Corporate Communication $35,000 Study Gold Coast Education Initiatives $1,250,000 Tourism Research (Visitor Information Platform) $100,000
7 That a non-recurrent amount of $3,538,500 be allocated in order to implement existing and proposed Destination Tourism Management Plan initiatives, as follows: Cultural Precinct (CAPEX) $1,000,000 Event Acquisition Reserve $500,000 Event Infrastructure (CAPEX) $500,000 Aviation (to Gold Coast Tourism) $200,000 Building Business Events (to Gold Coast Tourism) $250,000 Visitor Servicing (CAPEX) $1,000,000 Adventure Sports Tourism - Mountain Bike Contribution (CAPEX) $88,500 8 That Council recommends Gold Coast Tourism Corporation considers the best return on investment for the City's funding contribution and therefore re-directs core funding to delivery of the following proposed growth and stimulus initiative: Gold Coast 2018 Commonwealth Games (Marketing)
Further resolutions can be found in Attachment 1.
5 DISCUSSION
5.1 Background
In May 2014, the City of Gold Coast (the City) endorsed its first Destination Tourism Management Plan (DTMP). The DTMP was developed collaboratively by the City, Queensland Government and the tourism industry (as represented by Gold Coast Tourism) and provides an opportunity to align the strategies, resources, and efforts of each of the partners.
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ITEM 4 (Continued) 2017-2018 TOURISM AND ECONOMIC DIVERSIFICATION COMPONENT OF THE DIFFERENTIAL GENERAL RATE PD330/99/26(P1)
The delivery of the DTMP is governed via a partnership agreement, in the form of a Memorandum of Agreement (MOU), which outlines the roles and responsibilities of the City, Gold Coast Tourism (GCT), Study Gold Coast (SGC), Surfers Paradise Alliance (SPAL), Broadbeach Alliance (BAL), Connecting Southern Gold Coast (CSGC) and Study Gold Coast (SGC).
An overview of roles and responsibilities is shown in Figure 1 below. Figure 1 – DTMP Partnership Structure – Roles and Responsibilities
The DTMP partnership agreement was developed with shared destination key performance Indicator’s (KPI’s) (Attachment 2) aligned to achieving DTMP outcomes, specifically: 1.0 Aspirational goal of doubling visitor expenditure by 2020 2.0 Gold Coast tourism industry remains competitive against other destinations
Funding for the delivery of the implementation of the DTMP is derived from the Tourism and Economic Diversification Component of the Differential General Rate (TEDCDGR) which applies to approximately 27,000 commercial properties across 11 main categories.
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ITEM 4 (Continued) 2017-2018 TOURISM AND ECONOMIC DIVERSIFICATION COMPONENT OF THE DIFFERENTIAL GENERAL RATE PD330/99/26(P1)
With less than one year to go until the Gold Coast 2018 Commonwealth Games (GC2018), the DTMP Implementation Plan 2017-2018 (Attachment 3) has been prioritised to deliver actions that will reinforce the Gold Coast as a global tourism destination, improve the overall visitor experience during GC2018 and plan for future long-term interventions that will continue to grow the tourism industry, avoiding the traditional ‘post games lull’ often experienced after such a significant major event.
This report provides an update on progress towards the achievement of the DTMP shared destination KPI’s, an update on tourism industry performance and discusses and includes recommended allocations to deliver the DTMP Implementation Plan for 2017-18 including GCT and SGC budget submissions.
5.2 Tourism Industry Performance
The Gold Coast tourism industry is currently welcoming more visitors than ever before, however the trend over the past ten years continues to show stagnating domestic visitor nights and visitor expenditure. As shown in Figure 2, adjusting for inflation, total visitor expenditure today is approximately three hundred million less than in 2006.
Figure 2 – Total Visitor Expenditure 2006 – 2016 (2016 prices)
$7,000
$6,000
$5,000
$4,000
$3,000 $ millions
$2,000
$1,000
$0 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16
Total expenditure Domestic overnight International Day trip
Source: Tourism Research Australia
Domestic overnight visitation is our most significant sector as it represents 60 percent of total visitor expenditure with yield per day two times higher than day trip visitors. Today, domestic overnight visitors spent two million fewer nights than a decade ago. However over the past ten years we have seen an increase in day trip visitors of approximately 50%, but with relatively flat visitor expenditure and a yield of less than half domestic overnight visitors, the increased volume is not translating to high yield revenue.
Over the past ten years growth in international visitors has made some gains, but not enough to offset losses in domestic overnight expenditure. International visitors spend less per day
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ITEM 4 (Continued) 2017-2018 TOURISM AND ECONOMIC DIVERSIFICATION COMPONENT OF THE DIFFERENTIAL GENERAL RATE PD330/99/26(P1) and make up less than a quarter of total visitor expenditure. In the past 10 years international visitor expenditure in Australia has increased by 52%, compared with an increase of only 9% on the Gold Coast reflecting an overall loss of market share.
Due to the factors outlined above and as shown in Figure 3 below, overall visitor expenditure is tracking above anticipated forecasts, but well below the DTMP stretch target to double visitor expenditure by 2020.
Figure 3 – Progress toward Target of Doubling Visitor Expenditure by 2020
$8,000
$7,000 Millions
$6,000
$5,000
$4,000
$3,000
$2,000 Stretch Target TFC Forecast Actuals $1,000
$- 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: Gold Coast Tourism; TEQ, Deloitte Access Economics; Tourism Research Australia
Generally, over the past 10 years, the Gold Coast has compared well to our regional competitors however capital cities have continued to outperform us, and North Coast NSW has made some gains in recent years.
Gold Coast has not kept pace with the rate of growth in domestic overnight visitors in Australia, nor with the capital cities or North Coast NSW. Over the ten year trend, Gold Coast has been the only region in the competitor set to record negative growth (-13.71%) in domestic overnight visitor nights.
The annual growth rate of the number of international visitors to the Gold Coast exceeded the national growth rate, however we were the only region to record negative growth for international visitor expenditure. Over the ten year trend, international visitors to Australia grew by 50.6%, compared to Gold Coast's 26%. The capital cities have outperformed us, however we have recorded higher growth than our regional competitors.
Graphs showing Gold Coast year on year growth, against key competitor destinations for the period ended December 2016, as provided by GCT, is included in Attachment 7.
Continued investment to improve and broaden overall perceptions of the visitor experience on the Gold Coast within domestic and international visitor markets through destination marketing activities will lead to continued incremental visitor growth. However bold, significant investment in new tourism product, experiences and infrastructure is critical to addressing this long term trend and changing visitor mix.
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ITEM 4 (Continued) 2017-2018 TOURISM AND ECONOMIC DIVERSIFICATION COMPONENT OF THE DIFFERENTIAL GENERAL RATE PD330/99/26(P1)
5.2.1 Gold Coast Tourism Six-Month Performance Report
GCT is also required to provide a six month update on progress against allocated actions within the DTMP and achievement of KPI’s. For the period ending December 2016 GCT‘s performance is considered on track to meet the majority of their KPI’s. However total marketing campaign reach, international marketing campaigns and digital asset reach (highlighted in italics in Table 1) are considered well below target and will require significant improvement in the second half of the 2016/17. In order to address these issues, GCT has employed a Director Digital and Community Engagement Specialist.
A summary of results achieved against the annual target is included in Table 1 below. Shaded rows show where performance is lower than expected at six months.
Table 1 – Gold Coast Tourism Performance against KPI’s as at 31 December 2016 Key Performance Indicator Description Annual Target Mid-year Direct business sales generated via the $ Sales Value $2,000,000 $1,103,092 Visitor Information Centres (VICs) Value of direct business leads via Gold Coast $ Business Leads $6,000,000 $3,237,960 Tourism’s websites Additional marketing funds generated $ Marketing Funds $4,400,000 $1,937,850 through cooperative marketing partnerships Value (Economic Impact) of Business Events $ Value $35,000,000 $39,075,156 secured by Gold Coast Business Events Media exposure generated using Advertising $ Media Value $33,000,000 $45,502,785 Value Equivalence (AVE) measure
Total Marketing Campaign Reach # People Reached 250,000,000 90,804,414
Domestic Marketing Campaigns # Campaigns Delivered 20 13
International Marketing Campaigns # Campaigns Delivered 25 5
Digital Asset Reach # People Reached 6,500,000 935,115 % T/O Spent on Efficiency of Funds to Marketing 85% 79% Marketing # Trade and Media Travel Trade and Media Familiarisations 500 407 Hosted # Trade & Consumer Trade and Consumer Show Representation 25 15 Shows Attended % of Bid Wins / Business Event Bid Win Ratio 55% 57% Submitted
Direct Sales Leads Generated # Leads to Businesses 200,000 107,932
# Events with GCT Marketing Support to Events 25 12 Marketing Support 582 (at April Active Industry Leadership # Commercial Members 500 2017)
A copy of GCT’s full performance report is available on request.
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ITEM 4 (Continued) 2017-2018 TOURISM AND ECONOMIC DIVERSIFICATION COMPONENT OF THE DIFFERENTIAL GENERAL RATE PD330/99/26(P1)
5.3 2017-18 Allocation of the Tourism Component of the Differential General Rate Table 2 below provides an overview of the proposed allocation of the TEDCDGR for the City, GCT and SGC to deliver the DTMP Implementation Plan 2017-18. Proposed allocations are discussed in detail in sections 5.3.1 – 5.3.3. Delivery of key components of the DTMP Implementation Plan requires a further allocation of the TEDCDGR to address the following strategic priority areas in the lead up to and post GC2018: • continued support for SGC to grow international student visitation to the Gold Coast • contribution to the delivery of stage 1 of the Cultural Precinct • continued delivery of events infrastructure and acquisition of major events to the city • contribution to ongoing studies to deliver cruise ship terminal infrastructure • continuation of planned world class mountain bike infrastructure to leverage GC2018 infrastructure
Table 2 – Proposed allocation of the TEDCDGR 2017-2018 (including 2016-17 allocations) Purpose of Expenditure Rate $ Rate $ 2017-18 Variance 2016-17 Recurrent Initiatives Proposed Allocation Allocation Contribution to Gold Coast Tourism (Core funding) 13,500,000 14,000,000 500,000
EDMP tourism program 2,097,650 2,234,318 136,668
International relations (EDMP) 64,700 65,995 1,295
International relations (Mayor’s office) 50,000 50,000 0
Corporate communication 35,000 35,000 0
Study Gold Coast education initiatives 1,250,000 1,750,000 500,000
Recurrent Initiatives Total 16,997,350 18,135,313 1,137,963
Non-recurrent Initiatives
Cultural precinct reserve 1,000,000 1,000,000 0
Events reserve 500,000 750,000 250,000
Cruise ship terminal infrastructure 0 2,000,000 2,000,000
Events infrastructure 500,000 500,000 0
GC2018 visitor servicing 1,000,000 0 -1,000,000
Adventure sports tourism – mountain bike contribution 88,500 150,000 61,500
Study Gold Coast new proposal – seven year student 0 195,000 195,000 Contribution to Gold Coast Tourism – aviation 200,000 0 -200,000 attraction Contribution to Gold Coast Tourism – building 250,000 0 -250,000 business events Non-recurrent Initiatives Total 3,538,500 4,595,000 1,056,500
Total Proposed Differential Rate 20,535,850 22,730,313 2,194,463
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ITEM 4 (Continued) 2017-2018 TOURISM AND ECONOMIC DIVERSIFICATION COMPONENT OF THE DIFFERENTIAL GENERAL RATE PD330/99/26(P1)
5.3.1 Recurrent Initiatives
5.3.1.1 Contribution to Gold Coast Tourism - $14,000,000
In 2017-2018, GCT’s $14,000,000 base allocation supports the delivery of GCT’s integrated 2017-18 Business Plan (Attachment 4) which aligns with the Gold Coast 2017-2020 Marketing Strategy (requested but not provided as part of this funding submission) and the DTMP.
REDACTED
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ITEM 4 (Continued) 2017-2018 TOURISM AND ECONOMIC DIVERSIFICATION COMPONENT OF THE DIFFERENTIAL GENERAL RATE PD330/99/26(P1)
REDACTED
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ITEM 4 (Continued) 2017-2018 TOURISM AND ECONOMIC DIVERSIFICATION COMPONENT OF THE DIFFERENTIAL GENERAL RATE PD330/99/26(P1)
REDACTED
5.3.1.2 Additional GCT Funding Requests 2017-2018 Further to their base allocation GCT has requested additional funding of $1.68 million in 2017-18, specifically: • Aviation – China and Japan $650,000 • Business events – major conferences $300,000 • Commonwealth Games marketing - $500,000 • GC2018 industry activation and content expansion (More Gold Coast) - $230,000*
REDACTED
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ITEM 4 (Continued) 2017-2018 TOURISM AND ECONOMIC DIVERSIFICATION COMPONENT OF THE DIFFERENTIAL GENERAL RATE PD330/99/26(P1)
REDACTED
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ITEM 4 (Continued) 2017-2018 TOURISM AND ECONOMIC DIVERSIFICATION COMPONENT OF THE DIFFERENTIAL GENERAL RATE PD330/99/26(P1)
REDACTED
5.3.1.3 EDMP Tourism Program - $2,234,318
Key city- led activities in the DTMP Implementation Plan that can be progressed within the recurrent EDMP tourism program ($2,234,318) including staff funding is highlighted in Table 4 and commentary below.
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ITEM 4 (Continued) 2017-2018 TOURISM AND ECONOMIC DIVERSIFICATION COMPONENT OF THE DIFFERENTIAL GENERAL RATE PD330/99/26(P1)
Table 4: City-Led DTMP Actions Actions 2016-2017 DTMP Implementation Activities Stronger Partnerships Partnership Agreement Continue monitoring and report on performance against KPI’s.
Undertake top line review of DTMP priorities as part of Economic Development Strategy review. Balanced portfolio of markets China Plan Delivery of the China Strategic Plan including: - Targeted investment attraction - Way finding solutions that meet the needs of the Chinese visitor and local community - Investigating opportunities for business uptake of payment platforms familiar to the Chinese market such as Alipay and Wechat Wallet Balanced portfolio of markets (Continued) Research Tourism research partnership with Griffith Institute for Tourism including stage two of the Visitor Information Platform Quality Service and Innovation Be My Guest (Training Delivery of Be my Guest and Destination Host Programs, including: component of Visitor - Be my Guest workshops (target 4 x 180 approx 720 operators) Servicing) - Be my Guest principles integrated into GOLDOC volunteer training (15,000) - Be my Guest program for City volunteers (200 volunteers) - Delivery of Destination Host Program (target 4 x 50 approx 200 operators) Visitor Information Construction of Surfers Paradise Visitor Information Centre (VIC) Centres Construction of three temporary VIC pods for GC2018 key precincts Infrastructure and Investment Attraction Catalyst Projects Review of catalyst projects in line with the review of the EDS and DTMP and early stage feasibilities studies into post GC2018 long-term tourism infrastructure priorities. Iconic Experiences Adventure Sports Identify tourism outcomes that can be delivered via improving and Tourism Plan growing adventure sports infrastructure in the city. This includes improvements to sporting facilities to attract events and elite training camps. Product and Experience Investigations into new product and experience development projects. Development Advocate to the Federal Government for the future allocation of an ex- navy vessel for use as a world-class dive attraction.
Work with Surfworld to determine viable model to ensure surfing memorabilia collection continues to remain accessible to the public. Nature and culture Hinterland Experiences Continue support of the Australia’s Green Cauldron
Investigate the development of new catalyst tourism infrastructure within the Hinterland. Cultural Tourism Work with the sector to develop and package cultural tourism experiences.
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ITEM 4 (Continued) 2017-2018 TOURISM AND ECONOMIC DIVERSIFICATION COMPONENT OF THE DIFFERENTIAL GENERAL RATE PD330/99/26(P1)
Actions 2016-2017 DTMP Implementation Activities Events Events Infrastructure Contribute to enhancements to Bill Pippen Oval to progress to International Cricket Council (ICC) standard.
Ongoing market sounding, identification and business case development for priority event infrastructure improvements.
Design of Southern Gold Coast events infrastructure / terrace working in partnership with GOLDOC to achieve lasting legacy outcomes for the City. Events Funding Continue with Sports Marketing Australia agreement to actively target second and third tier mass participation events.
Contribution to GC600 and PGA per contractual agreements City Wide Events Plan Deliver the revised City Events Strategy to inform future acquisition of events taking into consideration cultural and sporting objectives for the city.
Precinct Entities continue to work together to deliver one city wide event per year that will attract visitors to the Gold Coast
City marketing and promotional activities ($583,750), required to implement the endorsed City Reputation Strategic Plan 2013-2023, are also included in the EDMP Tourism Program.
City marketing and promotion activities focus on creating reputation enhancing content for the More Gold Coast (MGC) digital platform which is integrated with the Australia’s Gold Coast website promoting the city’s key industry sectors and business, trade and investment opportunities.
The development of digital content on MGC and Australia’s Gold Coast websites is further supported by campaigns addressing perception challenges - domestically in relation to credibility of the business environment and internationally profiling the city's overall capability across, business, trade, investment, sport, heath, innovation and education showcasing the Gold Coast as an emerging global city. This activity will be further enhanced during 2017-18 as part of the GC2018 City Marketing campaign launched in the UK with the launch of the Queens Baton Relay in March 2017.
REDACTED
5.3.1.4 Other Recurrent Allocations - $150,995 In addition, TEDCDGR funding is also allocated to: • International Relations (EDMP) - support for tourism related investment attraction inbound delegations, REDACTED • International Relations Mayor’s office - facilitation of key sister city relationships through targeted inbound and outbound tourism related activities • Corporate Communications - contribution to Corporate Communications to support tourism related media and communication activities
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ITEM 4 (Continued) 2017-2018 TOURISM AND ECONOMIC DIVERSIFICATION COMPONENT OF THE DIFFERENTIAL GENERAL RATE PD330/99/26(P1)
5.3.1.5 Study Gold Coast Education Initiatives - $1,750,000 (refer separate report)
In 2017-2018, SGC’s $1,750,000 base allocation supports the delivery of strategies 2 - 4 as outlined in the SGC Business Plan 2017-18 (Attachment 5)
Proposed initiatives focus on growing awareness of the Gold Coast as an education destination, increasing the number of international students, their visiting friends and families, future investment into the City and improving the student experience. Key activities identified in the Business Plan to be funded via the TEDCDGR include: • Education city campaign (domestic and international) • Continuation of the China campaign • Implementation of the Mayors second home strategy • Student ambassador program including Commonwealth nations ambassadors • GC2018 international trade, marketing and activation pre and during games times • Civic city relations • Graduation experience for visiting friends and relatives
5.3.2 Non-Recurrent Initiatives
Given the need to plan for future long-term interventions that will continue to grow the tourism industry, an additional non-recurrent allocation of $4,595,000 is proposed to make reserve allocations for catalyst projects, up-lift City-led strategic priorities and deliver GC2018 legacy opportunities, specially:
• Allocation to reserve (cultural precinct and events) $1,750,000 • Cruise ship terminal $2,000,000 • Events infrastructure $500,000 • Adventure sports tourism – mountain bike contribution $150,000 • Study Gold Coast education initiatives $195,000
5.3.2.1 Allocations to Reserve
In order to continue to progress identified key catalyst projects in the DTMP that have already commenced, a reserve allocation of the TEDCDGR is proposed. This will provide a reserve for future years as cash flow is required. This includes the following:
Cultural Precinct Reserve $1,000,000 As per cultural precinct revised funding plan version 4.0 (refer B17.0502.003) allocation to the delivery of Stage 1a and 1b of the Cultural Precinct which includes the versatile outdoor space and stage, amphitheatre lawn, new art gallery and green bridge.
Events Reserve - $750,000 The events reserve is for the funding of events aligned to the DTMP in order to drive visitation to the City.
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ITEM 4 (Continued) 2017-2018 TOURISM AND ECONOMIC DIVERSIFICATION COMPONENT OF THE DIFFERENTIAL GENERAL RATE PD330/99/26(P1)
REDACTED
5.3.2.2 Cruise Ship Terminal Infrastructure - $2,000,000.
The feasibility study for the ocean side cruise ship terminal was presented to Council in May 2017 recommending a preferred option and a way forward. The tasks for 2017/18 include an Environmental Impact Study (EIS) and detailed technical investigations, reference design, transaction management/procurement planning and enhanced market sounding. The use of the TEDCDGR for this purpose is considered appropriate given the need to provide new tourism infrastructure to support the tourism industry.
5.3.2.3 Events Infrastructure - $500,000
The City continues to work to identify event infrastructure projects that have significant potential to attract new visitation with current priority projects including improvements to Kerrydale Park (Bill Pippen Oval) Robina to create an International Cricket Council standard venue and enhance the City’s opportunity to host major domestic and international matches (e.g. T20 Big Bash) at Metricon Stadium and a Southern Gold Coast event infrastructure site.
The City committed $250,000 in 2016/17 (resolution G16.0524.016) to the upgrade of Bill Pippen Oval facilities, conditional upon partners confirming the funding required to complete the estimated $1.25 million development (Currently awaiting the outcome of an application to the Federal Government’s Building Stronger Regions Fund).
Funding was also committed to a Southern Event Infrastructure Site with the potential to transform Queen Elizabeth Park into a premium outdoor entertainment space with the capacity to host events up to 5000 people.
Initial investigations identified that the outdoor event space would further benefit from additional features and some hard surface including:
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• re-alignment of the Oceanway footpath to enlarge the event space (this removes the constraints of light poles for event setup). • Infrastructure enabled boutique event terrace and media broadcast location with great views.
REDACTED
5.3.3.4 Adventure Sports Tourism (Mountain Biking Infrastructure) - $150,000 In 2015, the City developed a Gold Coast Cycle Centre Concept Master plan in order to leverage the opportunities GC2018 would provide at the site not only for the sport of mountain biking, but for all users of the facility. Legacy works were completed as part of the GC2018 Venue Delivery Program which saw improvements to the existing clubhouse and development of additional amenities, pathways, viewing areas and car parking. The City is leveraging these works (resolution G15.0519.022) and installing appropriate infrastructure both pre and post GC2018 that will improve tourism opportunities at the site and within the adjoining Nerang National Park. These improvements include the development of a mountain bike skills park, trail development and maintenance and associated infrastructure e.g. signage. This funding will also be aligned to seek external funding through the State Government’s Get Playing Plus infrastructure program in 2017/18 and 2018/19 which will further improve the tourism and community opportunities within this precinct.
5.3.3.5 Study Gold Coast Education Initiatives – $195,000 SGC is seeking an additional $195,000 to deliver the Seven Year Student campaign which aims to showcase the education and training sector as a “life experience” and will target school students and their parents who are considering international education.
REDACTED
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6 ALIGNMENT TO CORPORATE PLAN, OPERATIONAL PLAN AND CORPORATE STRATEGIES
The development of the DTMP and subsequent delivery of projects is identified as a key activity in the Economic Development Strategy 2013-23 and a key program of work in the Draft Corporate Plan:
Section Two - Prosperity built on a strong diverse economy 2.5 we are a globally recognised tourism destination our city attracts visitors from all over the world Key Programs of Work in the Corporate Plan include: • Develop and implement a citywide Destination Management Plan. • Work with Gold Coast Tourism to promote the city as a world class tourism destination through a range of marketing programs and activities.
7 COMMONWEALTH GAMES IMPACT
Gold Coast Commonwealth Games 2018 (GC2018) will be the biggest event the city has ever hosted and the largest in Australia for a decade. It will provide opportunities for the City to promote the city as a world-class tourism destination. Tourism programs leveraging GC2018 include:
1. Be My Guest quality service program 2. Surfers Paradise Visitor Information Centre refurbishment 3. Temporary Visitor Information Centres (pop-ups) 4. Tourism marketing 5. Queens Baton Relay, international marketing leverage
8 FUNDING AND RESOURCING REQUIREMENTS
Budget/Funding Consideration
Funding for the delivery of the implementation of the DTMP is derived from the Tourism and Economic Diversification Component of the Differential General Rate (TEDCDGR) which applies to approximately 27,000 commercial properties across 11 main categories. The differential general rate is levied on these properties given they provide direct services to tourists, or are adjudged to receive a benefit from tourist activities (say through access to increased custom from tourists). (In accordance with the provisions of section 92 (1)(a) of the LGA and section 80 of the Local Government Regulation 2012 (LGR)).
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The proposed allocation of the TEDCDGR in 2017-2018 is as follows:
Table 5 – Proposed allocation of the TEDCDGR 2017-2018 Purpose of Expenditure Rate $ 2017-18 Recurrent Initiatives Proposed Allocation ED5700O001 Contribution to Gold Coast Tourism (core funding) 14,000,000 ED5700O002 EDMP Strategic Projects EDMP tourism program • GC600 $66,300 • PGA and Events Contribution $500,000 • Surf Culture Project (Surf-world) $18,000 • Student and Youth Adventure Group $8,160 • Experience development $51,000 2,234,318 • Adventure and Sports Tourism $62,370 • DTMP Implementation $62,730 • Tourism Research Partnership $153,000 • City Marketing & Promotion $583,750 • Quality Service Program (Embracing GC2018) $204,000 • China Readiness $102,000 • Tourism operations $422,648 ED5700O009 International relations (EDMP) 65,995
CG400O001 International relations (Mayor’s office) 50,000 2017-18 Recurrent Initiatives (Cont.) Proposed Allocation CG6360O001 Corporate Communication 35,000 ED5700O002 EDMP Strategic Projects 1,750,000 Study Gold Coast education initiatives Recurrent Initiatives Total 18,135,313
Non-recurrent Initiatives
Reserve Allocation 1,000,000 Cultural precinct reserve Reserve Allocation 750,000 Events reserve ED5550O002 Major Projects 2,000,000 Cruise Ship Terminal ED5700C001 Tourism Capital 500,000 Events infrastructure ED5700C001 Tourism Capital 150,000 Adventure sports tourism – mountain bike contribution ED5700O002 EDMP Strategic Projects 195,000 Study Gold Coast education initiatives Non-recurrent Initiatives Total 4,595,000
Total Proposed Differential Rate 22,730,313
The total TEDCDGR of $22,730,313 (recurrent and non-recurrent) represents an overall 10.7% increase on 2016-17.
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Additional requests from GCT of $1,750,000 have not been included within the budget papers at this stage. REDACTED
Human Resources Current activities in relation to managing the Destination Tourism Management Plan are undertaken internally within Council’s Economic Development branch. GCT is responsible for the destination marketing of the Gold Coast. SGC is responsible for the promotion of the Gold Coast as an education destination.
9 RISK MANAGEMENT This activity supports the mitigation of the following corporate risk: CO000427 – Failure to diversify the economy leading to an over reliance on the construction and tourism industries to generate economic growth and prosperity. C0000497 – Failure to maximise the legacy and community development opportunities associated with the Gold Coast 2018 Commonwealth Games leading to reputation damage.
10 STATUTORY MATTERS Local Government Act 2009
11 COUNCIL POLICIES Not Applicable.
12 DELEGATIONS Not Applicable.
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13 COORDINATION & CONSULTATION
The following people have been consulted in relation to the report: Name and Title of the Stakeholder Directorate or Is the Stakeholder Consulted Organisation Satisfied With Content of Report and Recommendations (Yes/No) Scott Kruger, Coordinator Tourism EDMP Yes
John Jackson, Corporate Management OCEO Yes Accountant
Kylie Petersen, Senior City Marketing EDMP Yes Officer
Bryan Case, Manager Project Services EDMP Yes
Gold Coast Tourism Provision of funding Chief Executive Officer submission Director – Corporate Services
Executive Director Corporate Reputation and Strategy Chief Executive Officer Study Gold Coast Provision of funding submission
14 STAKEHOLDER IMPACTS
It is the intention of the DTMP to ensure the sustainability of the tourism industry. GCT, SGC and the City are key partners in the delivery of the DTMP.
15 TIMING
Priority actions identified in the report will be delivered within 2017-18.
16 CONCLUSION
The Gold Coast tourism industry is currently welcoming more visitors than ever before, however the trend over the past ten years continues to show stagnating domestic visitor nights and visitor expenditure.
The DTMP identifies 68 actions to shift this trend and aims to establish more sustainable outcomes for the Gold Coast Tourism industry with the goal of doubling visitor expenditure by 2020.
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Continued investment to improve and broaden overall perceptions of the visitor experience on the Gold Coast through destination marketing activities will lead to continued incremental visitor growth. However bold, significant investment in new tourism product, experiences and infrastructure is critical to addressing this long term trend.
With less than one year to go until GC2018, the DTMP Implementation Plan 2017-2018 has been prioritised to deliver actions that will reinforce the Gold Coast as a global tourism destination, improve the overall visitor experience during GC2018 and plan for future long- term interventions that will continue to grow the tourism industry, avoiding the traditional ‘post games lull’ often experienced after such a significant major event.
The implementation of the plan is funded through the TEDCDGR including the following strategic priority areas in the lead up to and post GC2018: • continued support for SGC to grow international student visitation to the Gold Coast • contribution to the delivery of Stage 1 of the Cultural Precinct • continued delivery of events infrastructure and acquisition of major events to the City • contribution to ongoing studies to deliver a future Cruise Ship Terminal • progression of plans for world class Mountain Bike infrastructure to leverage GC2018 infrastructure
Key projects and programs to be progressed by the City during 2017/18 include: • Delivery of catalyst infrastructure projects including: o Oceanside Cruise Ship o Southern Gold Coast events infrastructure / events terrace o Review of catalyst projects and early stage feasibility studies into post GC2018 long-term tourism infrastructure priorities. • Ongoing delivery of the Be My Guest and Destination Host programs. • Construction of the Surfers Paradise Visitor Information Centre and three temporary VICs across key games precincts • Delivery of the China plan • Funding of current and new major events to the City
GCT has also submitted an integrated 2017-18 Business Plan which outlines a new Marketing Strategy REDACTED
GCT has also requested additional funding for special projects which have the potential to attract more visitors and revenue for the city including: • Aviation – China and Japan $650,000 • Business events – Major conferences $300,000 • Commonwealth Games - $500,000 • GC2018 industry activation and content expansion (More Gold Coast) - $230,000
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REDACTED
17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That the report/attachment be deemed a non-confidential document except those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009. 2 That an amount of $22,730,313 be raised via the Tourism and Economic Diversification Component of the Differential General Rate for the purpose of delivering tourism and economic related projects and activities to support the implementation of the Destination Tourism Management Plan. 3 That a recurrent core amount of $18,135,313 be allocated as follows: Contribution to Gold Coast Tourism $14,000,000 EDMP Tourism Program $2,234,318 International Relations - EDMP $65,995 International Relations – Mayor’s Office $50,000 Corporate Communication $35,000 Study Gold Coast Education Initiatives $1,750,000 4 That a non-recurrent amount of $4,595,000 be allocated in order to implement existing and proposed Destination Tourism Management Plan initiatives, as follows: Cultural Precinct (CAPEX) $1,000,000 Event Acquisition Reserve $750,000 Event Infrastructure (CAPEX) $500,000 Cruise Ship Terminal Infrastructure $2,000,000 Adventure Sports Tourism - Mountain Bike Contribution (CAPEX) $150,000 Study Gold Coast Education Initiatives $195,000 5 That Council recommends Gold Coast Tourism Corporation considers the best return on investment for the City's funding contribution and provides a business case documenting the proposed special initiatives, being: a. Aviation (China and Japan) b. Business Events – major conferences c. Gold Coast 2018 Commonwealth Games
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6 That the Mayor and Chief Executive Officer be authorised to allocate up to $300,000 to Gold Coast Tourism Corporation for special initiatives identified in recommendation 5 above, from general revenue, subject to a satisfactory business case.
Author: Authorised by: Toni Brownie Darren Scott Program Manager Director Economic Development & Major City Marketing, Investment and Tourism Projects 2 May 2017 TRACKS REF:62003629
Cr PJ Young declared a real (or perceived) conflict of interest in this matter could exist (as per section 173 of the Local Government Act 2009) due to him being a board member of Gold Coast Tourism but he had considered his position and was firmly of the opinion he could participate in debate and vote on this matter in the public interest.
Cr PJ Young remained in the room.
Changed Recommendation
COMMITTEE RECOMMENDATION moved Cr Tate seconded Cr Vorster
1 That the report/attachment be deemed a non-confidential document except those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009. 2 That an amount of $24,180,313 be raised via the Tourism and Economic Diversification Component of the Differential General Rate for the purpose of delivering tourism and economic related projects and activities to support the implementation of the Destination Tourism Management Plan. 3 That a recurrent core amount of $18,135,313 be allocated as follows: Contribution to Gold Coast Tourism $14,000,000 EDMP Tourism Program $2,234,318 International Relations - EDMP $65,995 International Relations – Mayor’s Office $50,000 Corporate Communication $35,000 Study Gold Coast Education Initiatives $1,750,000
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4 That a non-recurrent amount of $6,045,000 be allocated in order to implement existing and proposed Destination Tourism Management Plan initiatives, as follows: Cultural Precinct (CAPEX) $1,000,000 Event Acquisition Reserve $750,000 Event Infrastructure (CAPEX) $500,000 Cruise Ship Terminal Infrastructure $2,000,000 Adventure Sports Tourism - Mountain Bike Contribution (CAPEX) $150,000 Study Gold Coast Education Initiatives $195,000 Aviation (China and Japan) of $650,000 Business Events – major conferences $300,000 Gold Coast 2018 Commonwealth Games $500,000
CARRIED UNANIMOUSLY
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ATTACHMENT 1 - PREVIOUS RESOLUTIONS
Council, at its meeting on 19 June 2015 resolved in part B15.0619.002 1 That the report/attachment be deemed a non-confidential document except those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009. 2 That Council endorses the DTMP implementation plan for 2015-2016. 3 That an amount of $18,568,240 be raised via the tourism component of the differential rate. 4 That the recurrent core amount of $15,118,240 be allocated as follows; a Gold Coast Tourism Core Funding $13,000,000 b Economic Development Tourism Initiatives $1,970,100 c Corporate Communication and promotion of tourism projects $35,000 d International Relations $113,140 e Cultural Precinct (CAPEX) $512,500 f Event Infrastructure (CAPEX) $500,000 Event acquisition reserve $500,000 5 That the additional non-recurrent amount of $2,535,000 be allocated in order to implement the endorsed Destination Tourism Management Plan, a key deliverable in the Economic Development Strategy as follows: Visitor Servicing (CAPEX) – GC2018 HoA Item #22 $300,000 China Education Program (Study GC) $335,000 Cultural Precinct (Capex) $1,000,000 Event Infrastructure (Capex) $500,000 Event acquisition reserve $400,000 6 That an additional non-recurrent amount of $915,000 be allocated to Gold Coast Tourism in order to attract additional Aviation to the Gold Coast Airport and contribute to Middle East promotion activities. Aviation Attraction $665,000 Sponsorship (X-Cats) $250,000 7 That the CEO be authorised to commence negotiations regarding a new five year funding agreement with Gold Coast Tourism (2016-17 to 2021-2021)”
Council, at its meeting on 2 April 2015, resolved in part: G15.0402.031: 1 That Council notes the update report on the Destination Tourism Management Plan in its first year of implementation. 2 That Council notes the implementation plan for 2015-2016 will be considered through the 2015-16 budget process.
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Council, at its meeting on 18 June 2014, resolved in part B14.0618.017
1 That an amount of $14,725,112 (0.5% increase) be raised from all commercial and tourist rental properties via the tourism component of the differential rate, for the purpose of increasing visitor demand, visitor arrivals and visitor expenditure for the destination against competitive or destination and industry dynamics. 2 That the amount of $14,725,112 be allocated as follows; Gold Coast Tourism Core Funding $12,600,000 Economic Development Tourism Initiatives $1,976,972 Corporate Communication and promotion of tourism projects $35,000 International Relations $113,140
Council, at its meeting on 18 June 2014, resolved in part B14.0618.017
1 That Council endorses the Destination Tourism Management Plan – Implementation Plan 2014-15. 2 That Council endorses an additional $1.5 million (net) to be raised as part of the Tourism Component of the Differential Rate to initiate, develop and manage strategic tourism and cultural projects and events. Such funding to be allocated as follows: • Cultural Precinct $500,000 • Event acquisition $500,000 • Event Infrastructure $500,000 3 That the additional $1.5 million (net) be raised from all commercial and tourist rental properties. 4 That an Events Reserve be created for the purpose of acquiring and funding events.
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ATTACHMENT 2 - DTMP SHARED DESTINATION KEY PERFORMANCE INDICATORS
3.0 Aspirational goal of doubling visitor expenditure by 2020, through the following:
3.1 Increase length of stay
3.2 Increase average expenditure
3.3 Retain and grow domestic market share
3.4 Retain and grow international market share from traditional markets including New Zealand, Japan, UK and Europe
3.5 Secure higher growth rates from South East Asia, China and emerging markets
4.0 Gold Coast tourism industry remains competitive against other destinations.
4.1 Provide commentary and measure industry performance against total visitor expenditure, visitors and total visitor nights for the following domestic non-capital destinations
4.1.1 Domestic Non-Capital Destinations:
4.1.1.1 Sunshine Coast
4.1.1.2 Tropical North Queensland
4.1.1.3 Northern New South Wales
4.2 Provide commentary for the following domestic capital destinations:
4.2.1 Domestic Destinations:
4.2.1.1 Brisbane
4.2.1.2 Sydney
4.3 Provide a reference for information with the following international leisure destinations:
4.3.1 Phuket, Thailand
4.3.2 Las Vegas, USA
4.3.3 Greater Miami, USA
4.3.4 Hawaii USA
4.3.5 Other (as deemed suitable)
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ATTACHMENT 3 - DTMP IMPLEMENTATION PLAN 2017-18
TRACKS-#62122920-2017-18 DTMP IMPLEMENTATION PLAN
ATTACHEMENT 4 - REDACTED
ATTACHMENT 5 – REDACTED
ATTACHMENT 6 – REDACTED
ATTACHMENT 7 – GOLD COAST TOURISM INDUSTRY PERFORMANCE AGAINST KEY COMPETITOR DESTINATIONS
TRACKS-#62164885-GOLD COAST TOURISM INDUSTRY PERFORMANCE - YE DECEMBER 2016
Attachment 3 2017-2018 DTMP IMPLEMENTATION PLAN
The following tables provide the activities associated with the delivery of the seven key strategic priorities for 2017-2018. It includes the agency identified to lead the activity, the supporting agencies and the timing for implementation.
1. Stronger Partnerships Implementation Plan 2017-2018
DTMP Action Actions Lead Support 1.1 (1.3) Partnership Continue monitoring and report on performance against KPI’s.
Agreement Undertake top line review of DTMP priorities as part of Economic City/GCT SGC, Entities Development Strategy review. NA 2. Balanced Portfolio of Markets Implementation Plan 2017-2018
DTMP Action Actions Lead Support 2.1. Destination Annual plans approved by GCT senior management and Board Marketing GCT Annual Business Plan submitted to Council highlighting key
objectives, main strategies, and major evolutions in destination marketing GCT City GCT recurrent approach
Six monthly reports on Annual Business Plan and agreed destination marketing performance measures submitted to GCT Board and Council Execution of 55 major domestic and international destination marketing campaigns focused on increasing visitor demand, visitor arrivals, and / or GCT GCT recurrent visitor expenditure. 2.2 Business Events Deliver a program of: • 500 domestic and international sales calls • 150 researched and qualified business leads • 125 formal bids submitted • 60 bid wins GCT recurrent Increase research and sales activity with the following appointments: (GCT request • a dedicated full-time sales representative in China to capture highly GCT for additional prospective Incentive and conference business funding not • A full time researcher to source additional highly qualified leads for recommended) the sales team • An additional domestic Business Development Manager to pursue new bidding opportunities in the major capital cities – • A part-time contractor co-funded by GCCEC working in the UK/Europe market to target significant international association
Page 1 Attachment 3 conference bidding opportunities 2.3 Marketing Event Lead the execution of an always-on marketing approach to profile the Gold Support Coast’s calendar of events Provide promotional distribution to all relevant Gold Coast sporting / cultural events through owned GCT channels Partner with major Gold Coast sporting / cultural events and local tourism GCT GCT recurrent industry to deliver 16 domestic trade and consumer direct tactical campaigns Connect event organisers with GCT member businesses, local industry, trade, and aviation partners 2.4 Key Influencer Deliver a program which targets and attracts 500 media and travel trade Program participants on familiarisation Engagement with Chinese celebrity and Key Opinion Leaders (KOL) to deliver destination advocacy across digital and social media platforms GCT recurrent Inclusion of KOL advocacy across Singapore and Malaysia into airline GCT cooperative campaign activation. Focus on building awareness and promotion of new and developing products and experiences through the program 2.5 Business Promotional distribution for relevant GCT member businesses through Opportunities owned GCT channels Access for relevant GCT member businesses to a program of domestic and international cooperative marketing activity Facilitate participation for relevant GCT member and non-member businesses to the GCT Travel Tribe GCT recurrent GCT Provide a program of industry engagement, cooperation, and education through monthly networking events and quarterly industry workshops Access to representation for relevant GCT member businesses in a program of domestic and international trade and consumer shows Access to qualified business event leads for relevant GCT member businesses 2.6 Digital Undertake digital transformation towards genuine digital first marketing activities including: • Data driven marketing practices • Ongoing consumer engagement throughout destination journey GCT City GCT recurrent • Website CMS review and upgrade • Mobile app review – destinationgoldcoast.com enhancement for responsiveness 2.7 (5.8) Research Partnership with Griffith Institute for Tourism to deliver Stage 2 of visitor City GIFT/GCT EDMP recurrent and Analysis information platform.
Page 2 Attachment 3 2.8 China Plan Implement City-Wide China Strategic Plan (4.4)- with the following key actions: International • Promote the City as an incentive destination in China to attract readiness significant scale business events to drive corporate visitation. • Develop digital resources for visitors in Mandarin • Establish way finding that best meets the needs of the Chinese visitor and accepted by the community (including safety messages i.e. swim between the flags) • Investigate opportunities for business uptake of payment platforms familiar to the Chinese market such as Alipay and Wechat Wallet • Continue and expand on the Gold Coast Engaging the China GCT / EDMP City/GCT/SGC Market Program and Be My Guest to improve the China readiness recurrent across the tourism sectors, including hotels and restaurants • Undertake research into consumer preferences to determine priorities for investment in tourism products / experiences • Targeted investment attraction to support the growth of Chinese investment into the City including ongoing capacity studies to determine the demand for accommodation • Continued work to increase aviation access into China • Undertake program to raise awareness of the importance of the China market to the Gold Coast and engage residents in welcoming visitors 2.10 Education Delivery of specific marketing initiatives to grow awareness of the Gold Coast as an education destination, increase the number of international students, their visiting friends and families and future investment into the city. Strategies include: SGC recurrent • Education city campaign (domestic and international) (plus $195,000 • Continuation of the China campaign SGC City, GCT new budget ask, • Implementation of the Mayors second home strategy and student Seven Year ambassador program Student) • GC2018 international trade, marketing and activation pre and during games time. • Seven year student campaign 2.13 Brand Evolution Build on the foundation of the ‘We are Destination Gold Coast’ platform. Drive effective and ongoing development of the Destination Gold Coast GCT City GCT recurrent Brand. 2.14 GC2018 GC2018 referenced throughout core marketing campaigns in domestic, GCT recurrent Marketing and international marketing GCT TEQ, City (GCT request Deliver a GC2018 social media marketing campaign for additional
Page 3 Attachment 3 funding not recommended)
3. Infrastructure and Investment Attraction Implementation Plan 2017-2018
DTMP Action Actions Lead Support 3.3 Delivery of Cultural Precinct EDMP new Catalyst Projects Continuation of Stage 1a (amphitheatre) and commencement of Stage 1b City budget proposal (Art Gallery and Green Bridge) $1,000,000 Mountain Bike and adventure Trails EDMP new Continue progression of the Gold Coast Cycle Centre City State budget proposal $150,000 Southern Event Infrastructure Site EDMP new Detailed design and construction of Southern Gold Coast Event City budget proposal Infrastructure site and / or events terrace $500,000 Cruise Ship Terminal EDMP new Development of EIS and detailed technical investigations, reference City budget proposal design, transaction management/procurement planning and enhanced $2,000,000 market sounding for future Oceanside Cruise Ship terminal. Dive Attraction Continue to advocate to the Department of Defence, State and Federal City EDMP recurrent Governments for the future allocation of an ex-navy vessel for use as a world-class dive attraction Review of catalyst projects in line with the review of the EDS and DTMP and early stage feasibilities studies into post GC2018 long-term tourism City EDMP recurrent infrastructure priorities 3.8 Aviation Partner under the Queensland Government’s Connecting with Asia Fund, GCT recurrent TEQ, State, to attract increased aviation capacity into China (Brisbane) and Japan (GCT request GCAL, (Gold Coast and Brisbane). GCT for additional Brisbane funding not Airport recommended) 3.9 Accessible Implement accessible component within Be My Guest and Discover Gold Tourism Coast Workshops to highlight best, good and poor practice outcomes City GCT / OCG EDMP recurrent within the City. 4. Quality Service and Innovation Implementation Plan 2017-2018
DTMP Action Actions Lead Support
Page 4 Attachment 3 4.1, (4.3,) Be My Delivery of GC2018 focussed ‘Be My Guest’ and ‘Destination Host’ Guest Implementation programs, including: as a component of • Four rounds Be my Guest workshops (target 180 per round / 720 Visitor Servicing (4.9) operators) • Be my Guest principles integrated into GOLDOC volunteer training (15,000) EDMP recurrent GCT recurrent • Be my Guest program for City volunteers (200 volunteers) City GCT (customer • Four Destination Host Programs (target 200 operators) service awards) • Partnerships developed with large operators to transfer Be my Guest training into internal practices (train the trainer) • Further development of online information and tools for those not able to attend formal training. • Ongoing delivery of customer service awards (GCT) 4.3 Visitor Education Continue and expand on the Gold Coast Engaging the China Market and Awareness Program to improve the China readiness across the tourism sectors, GCT City GCT recurrent including hotels and restaurants 4.6 Benchmark Visitor Continue next stage of Visitor Information Platform using social media and City GIFT/GCT EDMP recurrent Satisfaction big data analytics to track and react to visitor sentiment. 4.9 (4.5) Visitor Recruitment of visitor servicing staff, volunteers, destination ambassadors Servicing and greeters for GC2018 ensuring a permanent legacy for post games GCT/GOLDO City EDMP recurrent activation. C
4.10 Visitor Construction of Surfers Paradise Visitor Information Centre (VIC) Information Centre Construction of three temporary VIC pods for GC2018 key precincts City GCT EDMP recurrent and GC2018 pods 5. Iconic Experiences Implementation Plan 2017-2018
DTMP Action Actions Lead Support 5.3 Delivery of Hero Southern Event Infrastructure Site EDMP new Experience (Catalyst) Detailed design and construction of Southern Gold Coast Event budget Infrastructure site and / or events terrace proposals Cultural Precinct Event Continuation of Stage 1a (amphitheatre) and commencement of Stage 1b GOLDOC, infrastructure City (Art Gallery and Green Bridge) GCT $500,000 Mountain Bike and adventure Trails Cultural Precinct Continue progression of the Nerang Mountain Bike Trails Tourism $1,000,000 development project Mountain Bike Dive Attraction $150,000
Page 5 Attachment 3 Continue to advocate to the Department of Defence, State and Federal Dive Attraction Governments for the future allocation of an ex-navy vessel for use as a EDMP recurrent world-class dive attraction
5.4 (3.4) Adventure Identify tourism outcomes that can be delivered via improving and growing Sports Tourism Plan adventure sports infrastructure in the city. This includes improvements to GCT/ sporting facilities to attract events and elite training camps. Also includes City TEQ/DSDIP EDMP recurrent mountain biking (which will be used for GC2018 into world-class permanent facilities). 5.6 Surf Museum Continue to work with Surfworld to determine viable model to ensure Surf Industry, valuable surfing memorabilia collection continues to remain accessible to City Arts Centre, EDMP recurrent the public. Surf World 5.9 Product Work with DTESB and Federal Government funded programs such as development Mentoring for Growth (DTESB) and Business Elevate Program (NORTEC) GCT / DTESB GCT recurrent to support tourism operators.
6. Nature and Culture Implementation Plan 2017-2018
DTMP Action Actions Lead Support 6.1 (6.3) Hinterland Continue support of the Australia’s Green Cauldron campaign. DNPRSR, Experiences Work with tourism operators to develop new experiences and access to QPWS, the Hinterland through product packaging and capability development City AGCSC, EDMP recurrent programs. DSDIP, Investigate the development of new catalyst tourism infrastructure within DTMR the Hinterland. 6.4 Cultural Precinct Continuation of Stage 1a (amphitheatre) and commencement of Stage 1b EDMP new Arts Centre, (Art Gallery and Green Bridge) City budget proposal DSITIA $1,000,000 6.5 Cultural Tourism Work with the sector to continue to develop and package cultural tourism City EDMP recurrent Plan experiences that builds the City’s reputation as a creative, vibrant city. 7. Events Implementation Plan 2017-2018
DTMP Action Actions Lead Support 7.2 Event Funding Continue with Sports Marketing Australia agreement to actively target 2nd City TEQ, GCT EDMP recurrent and 3rd tier mass participation events
Page 6 Attachment 3 Continue to aggressively target major events to the city that will increase EDMP new visitation budget proposal $750,000 7.3, 7.4 (3.3 5.3, 5.5) Design and build the second event infrastructure site on the Southern EDMP new Event Infrastructure Gold Coast working in partnership with GOLDOC to achieve lasting legacy City GOLDOC budget proposal and staging outcomes for the City. $500,000 7.6 GC2018 Tourism Continue to implement marketing activity and amplify GOLDOC GCT Marketing Plan campaigns in conjunction with partners to maximise exposure of the recurrent(GCT Destination in games related marketing request for City/TEQ/TA GCT additional /GOLDOC funding not recommended)
7.7 New Events In Contribute to enhancements to Bill Pippen Oval to progress to TEQ, SQ, Stadiums International Cricket Council (ICC) standard with the aim of attracting elite City EDMP recurrent GIFT cricket to Metricon Stadium 7.9 (6.5, 7.10) City Deliver the revised City Events Strategy to inform future acquisition of Wide Event events taking into consideration cultural and sporting objectives for the GCT, BA, EDMP recurrent City city. SPA, CSGC
Precinct Entities continue to work together to deliver one city wide event TEQ Entities per year that will attract visitors to the Gold Coast recurrent
Page 7
ITEM 4 (Continued) 2017-2018 TOURISM AND ECONOMIC DIVERSIFICATION COMPONENT OF THE DIFFERENTIAL GENERAL RATE PD330/99/26(P1) Attachments 4 to 6
REDACTED
Attachment 7 Page 1
EXCERPT – GOLD COAST TOURISM SIX MONTH REPORT ENDED DECEMBER 2016
GOLD COAST COMPETITOR DESTINATION PERFORMANCE
The Gold Coast’s growth in Domestic Overnight visitation was relatively low compared to its peers in 2016 (Chart 4).
CHART 4: GROWTH IN DOMESTIC VISITORS TO COMPETITOR SET
10.0 +15.2% +12.8% +5.1% +2.1% +1.7% -1.5% -11.3% 9.0 8.0
7.0 6.0 5.0 2015 4.0 2016 3.0 VISITORS (MILLIONS) 2.0 1.0 0.0 Sunshine Coast North Coast Brisbane Melbourne Gold Coast Sydney Tropical North NSW Queensland
In good news however, on an average per night basis, domestic overnight expenditure for the Gold Coast (+3.9%) was ahead of growth for our major competitors.
Aside from the Sunshine Coast, all of Gold Coast’s major competitors experienced a decline in average per night expenditure, year-on-year (Chart 5).
CHART 5: GROWTH IN DOMESTIC SPEND PER NIGHT PER VISITOR, COMPETITOR SET
+3.9% +2.9% -2.2% -4.5% -4.6% -4.8% -7.1% $350
$300
$250
$200 2015 $150 2016 $100
SPEND/NIGHT/VISITOR $50
$0 Gold Coast Sunshine Coast North Coast Brisbane Sydney Melbourne Tropical North NSW Queensland
Attachment 7 Page 2
The Gold Coast achieved a relatively high rate of growth in international visitation compared to key competitors over 2016. The only key competitors to grow international visitation faster than the Gold Coast – Sunshine Coast and Tropical North Queensland – did so from a lower base (Chart 6).
CHART 6: GROWTH IN INTERNATIONAL VISITORS TO COMPETITOR SET
+16.2% +15.3% +13.9% +13.3% +12.2% +9.6% +6.0%
4.0 3.5
Millions 3.0
2.5 2.0 2015 VISITORS 1.5 2016 1.0 0.5 0.0 Sunshine Coast Tropical North Gold Coast Sydney North Coast Melbourne Brisbane Queensland NSW
Despite remaining relatively unchanged from last year, the Gold Coast’s average nightly expenditure per international visitor was higher than all major competitors except Tropical North Queensland. (Chart 7)
CHART 7: GROWTH IN INTERNATIONAL SPEND PER NIGHT PER VISITOR, COMPETITOR SET
+28.2% +11.7% +11.2% +5.0% +0.8% -2.6% -3.9% $180 $160
$140 $120 $100 $80 2015 $60 2016 $40 SPEND/NIGHT/VISITOR $20 $0 Sunshine Coast Tropical North Sydney Brisbane Gold Coast Melbourne North Coast Queensland NSW
Source: Tourism Research Australia
Special Council Meeting 19 June 2017 38 Special Budget Committee Meeting 2 June 2017 Adopted Report
ITEM 5 ECONOMIC DEVELOPMENT AND MAJOR PROJECTS MORE GOLD COAST PD330/292/13/01(P1) Refer 4 page CONFIDENTIAL Attachment 1 Refer 1 page CONFIDENTIAL Attachment 2 Refer 1 page CONFIDENTIAL Attachment 3
1 BASIS FOR CONFIDENTIALITY
1.1 I recommend that this report be considered in Closed Session pursuant to section 275 (1) of the Local Government Regulation 2012 for the reason that the matter involves:
(e) contracts proposed to be made by it; or
1.2 I recommend that the report/attachment be deemed non-confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.
2 EXECUTIVE SUMMARY
Not Applicable.
3 PURPOSE OF REPORT
The purpose of this report is to provide an update on the City’s digital platform More Gold Coast and the proposed development of a Service Level Agreement with Gold Coast Tourism to confirm details relating to the delivery of future destination content for More Gold Coast.
4 PREVIOUS RESOLUTIONS
Council at its meeting 2 March 2017 resolved in part (G17.0303.021):
1 That the correspondence of Gold Coast Tourism Corporation dated 14 February 2017 be noted. 2 That the Chief Executive Officer be authorised to develop a Service Level Agreement (SLA) with Gold Coast Tourism (GCT) to confirm the details of content, performance standards, service levels and resourcing relating to delivery of the City's moregoldcoast digital content. 3 Subject to an SLA being executed to the Council's satisfaction, GCT be contracted to deliver specified digital content for an initial period of three (3) years from 1 July 2017 – 30 June 2020. 4 That GCT be provided funding of $70,000 per annum for the term of the agreement being the existing cost of destination content writer contracts. 5 That a report regarding the above be presented to the Special Budget Committee, concurrent with the consideration of GCTC's 17-18 budget submission.
Council at its meeting 28 July 2015 resolved in part (G15.0728.019):
1 That Council notes the update on activities to support the first year implementation of the Gold Coast City Reputation Strategic Plan. 2 That Council endorses the 2015-16 City Reputation Implementation Plan.
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ITEM 5 (Continued) MORE GOLD COAST PD330/292/13/01(P1)
3 That an annual update report on the progress of the Gold Coast City Reputation Strategic Plan be presented to Council. 4 That a further report be presented to Council for consideration on the outcomes of the City Marketing Alignment Project (Tourism positioning) by December 2015.
5 DISCUSSION
5.1 Background
Global reputation is strongly correlated with a city’s success in attracting investment, business and trade, a skilled workforce, international students and visitors (The Reputation Institute).
The Gold Coast’s reputation has been built on its strong tourism image with research identifying ongoing challenging perceptions to overcome, including; • favourability of the City’s business environment • lack of international awareness • domestic perceptions of safety
Council adopted the City Reputation Strategic Plan in August 2013 to overcome those challenging perceptions, thus endorsing a strategy for marketing and promotions focused on maximising the opportunity for significant reputation change through the Gold Coast 2018 Commonwealth Games (GC2018).
More Gold Coast, together with its associated social media channels, is the primary digital delivery platform under the City Reputation Strategic Plan.
5.2 More Gold Coast
More Gold Coast was launched in July 2014 as the City’s digital platform for content marketing under the City Reputation Strategic Plan. It is a vibrant and visual website – an alternative marketing channel led by the City, with a host of external partners and contributors seeking to change the way the City is viewed by telling a narrative of a city in transformation with world-class business and investment opportunities.
More Gold Coast publishes content in the form of feature articles across a broad range of categories including; Arts and Culture, Business and Investment, Lifestyle, Research and Education, Sport, Technology and Events that is used to market direct to domestic and international audiences by; • Putting reputation changing content in front of key audiences • Inviting and/or providing access to further detailed City economic information and programs.
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ITEM 5 (Continued) MORE GOLD COAST PD330/292/13/01(P1)
The More Gold Coast platform is also integrated with a number of City websites (discussed in further detail under Section 5.3.3) including: • Australia’s Gold Coast website promoting the City’s key industry sectors and business and investment opportunities • Business Gold Coast website which provides local businesses with information on the City’s Open for Business programs aimed at building local business capacity. • GC2018 programs that will offer a lasting legacy for the City including Commonwealth House and the Gold Coast Media Centre.
5.2.1 More Gold Coast Performance
Since launch More Gold Coast has seen growth in site visitation and user engagement. With over 2 million plus sessions, 1.3 million unique visitors, over 16 million reach on Facebook and 8700 subscribers to the MGC e-newsletter (achieving open and click through rates well above industry averages) the platform has grown a strong local, domestic and international audience.
Unique visitors are now averaging 80,000 per month, with page views on average over 160,000 per month. Visitors to the site are spending approximately two minutes on average on site, which is in line with industry averages; while length of time spent reading feature articles demonstrates strong engagement at more than three minutes from organic visitors and over four minutes for paid. Over 1,100 feature articles have been published since inception with 73% of content focused on building domestic and international audiences through business, invest, and targeted industry content.
More Gold Coast has also grown its social media audience with Facebook followers now in excess of 70,000.
The events calendar in particular has been a key driver of site visitation and is now recognised as the go-to calendar for the city.
A detailed breakdown of site analytics and social following is included in Attachment 1.
REDACTED
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ITEM 5 (Continued) MORE GOLD COAST PD330/292/13/01(P1)
REDACTED
5.3.1 Cost and Resources Required to Deliver More Gold Coast
The current annual cost of the City operating More Gold Coast is $401,540, summarised in Table 1 below:
Table 1 – Cost of the City Operating More Gold Coast Digital Platform Cost component Approx. cost Contracted writers $70,000 Website support and development $40,000 Hosting and security $10,000 Digital marketing / social media $30,000 Dedicated labour (2 positions - CMS Operator and Digital Social Media Officer) $138,257 Additional ED labour (proportion of 3 positions - Digital, PR and Partnerships (20%), Digital $113,283 Content and Media (50%), Digital Marketing (50%) – all focused on business, trade and investment related activities) TOTAL $401,540
REDACTED
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ITEM 5 (Continued) MORE GOLD COAST PD330/292/13/01(P1)
REDACTED
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ITEM 5 (Continued) MORE GOLD COAST PD330/292/13/01(P1)
5.3.3 GC2018 and City Business, Trade and Investment Programs
The More Gold Coast platform is integrated with the Australia’s Gold Coast website promoting the key industry sectors and business and investment opportunities, including: • Investment Attraction Program – Generating leads through provision of practical investment incentive information and promotion of specific investment and business opportunities. • Gold Coast Health and Knowledge Precinct (GCHKP) – Showcases the city’s GCHKP, cutting edge research undertaken within the precinct and investment information and opportunities. • Sport – Showcases the City’s investment in new and redeveloped sporting infrastructure, promotes the city’s high performance sport offerings through an interactive facilities tool to generate leads for high performance training camps and events. • Film Attraction Program – Supports the city’s film industry, generating leads through the provision of investment incentive information, film facilities and locations guide. (See Attachment 3).
In addition the More Gold Coast platform is also integrated with the Business Gold Coast website which provides local businesses with information on the City’s Open for Business programs aimed at building local business capacity.
Two GC2018 programs are integrated into the Australia’s Gold Coast website that will offer a lasting legacy for the City, including • GC2018 Commonwealth House, the City’s Games time business, trade and investment showcase where international VIPs and business people will register for the Games time program over the coming year and learn about opportunities for engagement with the Gold Coast. • GC2018 Gold Coast Media Centre (from mid-2017) where the world’s media will register attendance and download destination information, videos, imagery and articles.
Both programs will generate significant international audiences seeking to publish content about the city, do business and invest.
More Gold Coast (Australia’s Gold Coast) is also the digital component of the recently endorsed GC2018 City Marketing campaign launched in the UK with the launch of the Queens Baton Relay in March 2017. The recent campaign saw a 2100% increase in visitation to More Gold Coast from the UK market with users spending on average over 4:00 minutes reading the articles. (See Attachment 1 for the results of the UK digital campaign).
REDACTED
5.4 Next Steps
Given the important economic development function of More Gold Coast and the unique opportunities for City reputation building as host city of GC2018 it is recommended that More Gold Coast be operated under reduced resourcing ,focusing on GC2018 and the City’s business, trade and investment activity only, for a period of 12 months.
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ITEM 5 (Continued) MORE GOLD COAST PD330/292/13/01(P1)
REDACTED
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ITEM 5 (Continued) MORE GOLD COAST PD330/292/13/01(P1)
6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND OPERATIONAL PLAN
Corporate Plan
1 The Best Place to live and visit
1.8 Our city benefits from a great Gold Coast 2018 Commonwealth Games™
2 Prosperity builds on a strong, diverse economy
2.6 We are an emerging world-class business destination
Economic Development Strategy
6.6 International – A city known as an emerging world class business destination
7 GOLD COAST 2018 COMMONWEALTH GAMES IMPACT
GC2018 will be the biggest event the city has ever hosted and the largest in Australia for a decade. During GC2018 over 1000 hours of television coverage will see the Gold Coast broadcast to a potential cumulative global audience in excess of 1.5 billion. More than 3000 accredited and non- accredited media representatives will descend on the city, publishing over 10,000 articles about the Gold Coast. Never before will the city have had this level of international exposure.
For the Gold Coast, this presents a once-in-a-generation opportunity to market the city’s strengths to the world, with the More Gold Coast platform being a critical channel to achieving significant reputation change.
The More Gold Coast digital platform is host to GC2018 programs that will offer a lasting legacy for the City including: • GC2018 Commonwealth House, the City’s Games time business, trade and investment showcase where international VIPs and business people will register for the Games time program. • GC2018 Gold Coast Media Centre (from mid-2017) where the world’s media will register attendance and download destination information, videos, imagery and articles. • Digital component of the GC2018 City Marketing campaign launched in the UK with the launch of the Queens Baton Relay in March 2017.
8 FUNDING AND RESOURCING REQUIREMENTS
More Gold Coast is part of the City Reputation Strategy funded via the Tourism and Economic Diversification Component of the Differential General Rate, Cost Centre 1006012 – City Marketing and Promotions $572,310. The operational capacity of MGC is further supported by labour funded from the Economic Development branch budget.
The current cost of the City operating More Gold Coast is $401,540 per annum (see section 5.3.1).
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ITEM 5 (Continued) MORE GOLD COAST PD330/292/13/01(P1)
REDACTED
9 RISK MANAGEMENT
This activity supports the mitigation of the following corporate risks:
CO000427 – Failure to diversify the economy leading to an over reliance on the construction and tourism industries to generate economic growth and prosperity.
CO000497 – Failure to maximise the legacy and community development opportunities associated with the Gold Coast 2018 Commonwealth Games™ leading to reputation damage.
10 STATUTORY MATTERS
Not Applicable.
11 COUNCIL POLICIES
Not Applicable.
12 DELEGATIONS
Not Applicable.
13 COORDINATION & CONSULTATION
Name and/or Title of the Directorate or Is the Stakeholder Satisfied With Stakeholder Consulted Organisation Content of Report and Recommendations (Yes/No) Executive Director Corporate Gold Coast Tourism Consulted in relation to proposed Reputation and Strategy transition strategy. Dale Dickson, Chief Executive OCEO Yes Officer Ross Giudice, Executive OCEO Yes Management Officer to the CEO Natasha Potzsch, Digital EDMP Yes Marketing Officer Kylie Petersen, Senior City EDMP Yes Marketing Officer
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14 STAKEHOLDER IMPACTS
More Gold Coast as the City’s digital platform for content marketing under the City Reputation Strategic Plan is delivered in partnership with a number of key stakeholders and marketing organisations. In addition to contracted writers providing specific feature articles for publication on More Gold Coast, partnerships internally within Council, (eg: the Arts and Culture Unit, Events team) and external to Council, (eg: the Precinct entities, GCT, GCHKP, Universities etc.) provide leads and content for publishing on More Gold Coast or aggregate and repurpose content on their own marketing channels.
Given the integration of City GC2018, business, trade and investment programs within the More Gold Coast platform any future decision on the delivery of the site may present risks in the effective delivery of core economic development related activity for the City.
15 TIMING
The City Reputation Strategic Plan is Councils commitment to a 10-year plan to build city reputation using the once-in-a-generation opportunity presented by GC2018 for significant reputation change.
REDACTED
16 CONCLUSION
More Gold Coast together with its associated social media channels is the primary digital delivery platform under the City Reputation Strategic Plan adopted by Council in 2013. Since launch it has grown a strong local, domestic and international audience.
A proposal has been received from GCT requesting reallocation of responsibility and resourcing to GCT for the delivery of More Gold Coast. Council subsequently resolved to transfer responsibility for the delivery of destination content for More Gold Coast to GCT, subject to an SLA being executed to Councils satisfaction.
REDACTED
GC2018 presents the City with a key opportunity to significantly improve the Gold Coast’s reputation by promoting a broader representation of industries and an emerging world-class business and investment destination.
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ITEM 5 (Continued) MORE GOLD COAST PD330/292/13/01(P1)
It is therefore proposed that the City continues to deliver More Gold Coast under reduced resourcing ,focusing on GC2018 and the City’s business, trade and investment activity only, for a period of 12 months.
REDACTED
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ITEM 5 (Continued) MORE GOLD COAST PD330/292/13/01(P1)
17 RECOMMENDATION
It is recommended that Council resolves as follows:
1 That the report/attachment be deemed non-confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009. 2 That the proposal for Gold Coast Tourism deliver destination content for More Gold Coast for an initial period of three years not proceed for the reasons outlined in the report. 3 That the City continues to deliver More Gold Coast, under reduced resourcing as proposed in the report, for a period of 12 months, from 1 July 2017. 4 That Council undertakes a detailed review of destination marketing related activities internally within Council directorates and externally within Council controlled and funded entities with a view to identifying future options. 5 That a report on the outcome of the review be presented to Council by June 2018.
Authors: Authorised by: Toni Brownie Darren Scott Program Manager – City Marketing, Director Economic Development and Major Investment Attraction and Tourism Projects 5 May 2017 #62021401
Cr PJ Young declared a real (or perceived) conflict of interest in this matter could exist (as per section 173 of the Local Government Act 2009) due to him being City of Gold Coast’s appointed Board Member of Gold Coast Tourism but he had considered his position and was firmly of the opinion he could participate in debate and vote on this matter in the public interest.
Cr PJ Young remained in the room.
Changed Recommendation
COMMITTEE RECOMMENDATION moved Cr Tate seconded Cr Gates
1 That the report/attachment be deemed non-confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009. 2 That Council notes the report. 3 That responsibility for More Gold Coast be transferred to the Corporate Communication Branch from 1 July 2017. 4 Pursuant to 3 above, 2 FTE positions (existing employees) transfer to Corporate Communications effective from 1 July 2017.
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ITEM 5 (Continued) MORE GOLD COAST PD330/292/13/01(P1)
5 That in addition to the above, the 2017-18 budget allocation be $100,000 to fund the following activities:- a Content Development / Contracted Writers b Website Support and Development c Hosting and Security d Digital Marketing / Social Media
CARRIED BY SUPER MAJORITY
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ITEM 5 (Continued) MORE GOLD COAST PD330/292/13/01(P1)
ATTACHMENT 1 – MORE GOLD COAST WEBSITE ANALYTICS
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ITEM 5 (Continued) MORE GOLD COAST PD330/292/13/01(P1)
ATTACHMENT 1 CONT. – MORE GOLD COAST WEBSITE ANALYTICS
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ITEM 5 (Continued) MORE GOLD COAST PD330/292/13/01(P1)
ATTACHMENT 1 CONT. – MORE GOLD COAST WEBSITE ANALYTICS
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ITEM 5 (Continued) MORE GOLD COAST PD330/292/13/01(P1)
ATTACHMENT 1 CONT. – MORE GOLD COAST WEBSITE ANALYTICS
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ITEM 5 (Continued) MORE GOLD COAST PD330/292/13/01(P1)
ATTACHMENT 2 – GOLD COAST TOURISM CORRESPONDNCE DATED 14 FEBRUARY 2017
REDACTED
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ITEM 5 (Continued) MORE GOLD COAST PD330/292/13/01(P1)
ATTACHMENT 3 – GOLD COAST TOURISM CORRESPONSENCE DATED 13 APRIL 2017
REDACTED
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ITEM 6 ECONOMIC DEVELOPMENT AND MAJOR PROJECTS 2017-18 STUDY GOLD COAST FUNDING PD330/398/-(P21) REPORT CONFIDENTIAL
COMMITTEE RECOMMENDATION moved Cr Vorster seconded Cr Tozer
1 That the report/attachment be deemed a non-confidential document except those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009. 2 That 2017-2018 funding of $2,720,000 be allocated to Gold Coast Education and Training Network, TA Study Gold Coast, as follows: a. a total of $775,000 from responsibility centre ED5600O011, cost centre 1006413. b. a total of $1,750,000 from responsibility centre ED5700O002, cost centre 1000234. c. a total of $195,000 (non-recurrent) from responsibility centre ED5700O002, cost centre 1000234 for the Seven Year Student Campaign. 3 That Council endorse the key performance indicators as outlined in Table 2 of the report, for the remainder of the funding agreement with Gold Coast Education and Training Network, TA Study Gold Coast. 4 That Council notes the updated strategy, as outlined in the Study Gold Coast Business Plan 2017-18. 5 That Council endorses the reallocation of funding to support the updated strategic priorities as outlined in Table 4 of the report.
CARRIED UNANIMOUSLY
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ITEM 7 OFFICE OF THE CHIEF EXECUTIVE OFFICER SPECIAL RATES & CHARGES FOR CONTROLLED ENTITIES 2017-18 FN334/375/19(P1)
Please refer to the confidential document entitled ‘Special, Separate and Differential Rates & Charges 2017-18’. The relevant numbers are as indicated.
Broadbeach Management and Promotion Special Rate (refer to page 27)
COMMITTEE RECOMMENDATION moved Cr Taylor seconded Cr Baildon
1 That Council approves the use of a special rate to be applied on all properties within the Broadbeach designated area that satisfies the relevant criteria and categories for the purpose of funding (in part) the following activities of Broadbeach Alliance Ltd (BAL) for the 2017-18 financial year: (i) supervising, promoting and advancing the trading and economic development of the businesses being conducted on the rateable land; and (ii) promoting and attracting commerce and tourism to the businesses being conducted on the rateable land; and (iii) conducting and organising promotional programmes, publicity, special events, entertainment programs and decorations in the public areas adjoining the rateable land (including, for example, the Broadbeach Mall); and (iv) conducting market research and planning to further enhance the foregoing activities. 2 That the quantum of net rates to be raised by the Broadbeach Management and Promotion Special Rate in the Broadbeach Designated Area for 2017-18 shall be $2,679,304. 3 That total funds of $2,876,304 be provided to BAL to fund its operations in 2017- 18 including an increase of $197,000 to support growing of the Broadbeach Country Music Festival (BCMF) - to be sourced from the Tourism Levy ($97,000) and Division 10 Funds ($100,000.) 4 That the funding specified in item 3 of this resolution is provided to BAL in accordance with the Section 40 of the Local Government Act 2009 (Conducting Beneficial Enterprises).
CARRIED UNANIMOUSLY
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ITEM 7 (Continued) SPECIAL RATES & CHARGES FOR CONTROLLED ENTITIES 2017-18 FN334/375/19(P1)
Surfers Paradise Management Association and Promotion Special Rate (refer to page 23)
COMMITTEE RECOMMENDATION moved Cr Baildon seconded Cr Paul Taylor
1. That Council approves the use of a special rate to be applied on all properties within the Surfers Paradise designated area following that satisfies the relevant criteria and categories for the purpose of funding the following activities of Surfers Paradise Alliance Ltd (SPA) for the 2017-18 financial year: (i) supervising, promoting and advancing the trading and economic development of the businesses being conducted on the rateable land (ii) promoting and attracting commerce and tourism to the businesses being conducted on the rateable land; and (iii) conducting and organising promotional programmes, publicity, special events, entertainment programs and decorations in the public areas adjoining the rateable land (including, for example, the Cavill Avenue Mall); and (iv) conducting market research and planning to further enhance the foregoing activities. 2. That the quantum of net rates to be raised in the Surfers Paradise designated area for 2017-18 shall be $3,343,327, an increase of 1.9%, and that these funds be remitted to SPA to fund its operations for 2017-18. 3. That the funding specified in item 2 of this resolution is provided to SPA in accordance with the Section 40 of the Local Government Act 2009 (Conducting Beneficial Enterprises). 4. That Council authorises SPA to increase its stallholder fee for the Beachfront Markets by 6%. CARRIED UNANIMOUSLY
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ITEM 7 (Continued) SPECIAL RATES & CHARGES FOR CONTROLLED ENTITIES 2017-18 FN334/375/19(P1)
Southern Gold Coast Management and Promotion Special Rate (refer to page 25)
COMMITTEE RECOMMENDATION moved Cr O’Neil seconded Cr McDonald
1. That Council approves the use of a differential special rate to be applied on all properties within the southern Gold Coast designated area that satisfies the relevant criteria and categories for the purpose of funding the following activities of Connecting Southern Gold Coast Ltd (CSGC) for the 2017-18 financial year, developing and implementing strategies directed at: (i) stimulating economic and business development and growth within the southern Gold Coast region (comprising the postcode areas specified in paragraphs (1) and (2)); but (ii) maintaining the village character of the component areas. 2. That the quantum of net rates to be raised in the Southern Gold Coast designated area for 2017-18 shall be $793,978, an increase of 5.97%. 3. That total funds of $881,478 be provided to CSGC to fund its operations in 2017- 18 including an amount of $87,500 from Division 14 Funds. 4. That the funding specified in item 3 of this resolution is provided to CSGC in accordance with Section 40 of the Local Government Act 2009 (Conducting Beneficial Enterprises).
CARRIED UNANIMOUSLY
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ITEM 8 ECONOMIC DEVELOPMENT & MAJOR PROJECTS NEW MAJOR EVENT OPPORTUNITY (2018-2020) CS105/274/2017(P1) Attachment - REDACTED
1 BASIS FOR CONFIDENTIALITY
1.1 I recommend that this report be considered in Closed Session pursuant to section 463(1)(a) to (h) of the Local Government Act for the reason that the matter involves:
c the Council's budget e contracts proposed to be made by Council h business for which public discussion would be likely to prejudice the interests of Council or someone else, or enable a person to gain financial advantage
1.2 I recommend that the report/attachment be deemed non-confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.
2 EXECUTIVE SUMMARY
Not Applicable.
3 PURPOSE OF REPORT
The purpose of this report is to consider an outline proposal for a major event opportunity, viz Professional Bull Riders’ (PBR) Global Cup - to be staged in July 2018, July 2019, and July 2020, with a view to deciding an in-principle allocation of funds, pending receipt of additional detail and detailed assessment of such information regarding the cost-benefits of the event.
4 PREVIOUS RESOLUTIONS
Not applicable
5 DISCUSSION
5.1 Introduction
An initial approach has been received proposing to stage the Australian leg of a new event, the PBR Global Cup in July each year at the Gold Coast Convention and Exhibition Centre (GCCEC) for a period of three years (2018-2020).
This timing in July would enable it to provide mutual benefits with the Gold Coast Country Music Festival (GCCMF)1 at Broadbeach which is planned to be staged a week following this event. As financial support to the latter is currently being considered by Council, it is timely to consider possible support to this event at the same time because of their potential synergies. Additionally, the applicant is seeking a timely decision to enable adequate lead- time for marketing and promotion (eg approx one year).
1 Note: At the Special Budget Meeting on 29 May 2017, Council requested that the Broadbeach Country Music Festival be titled Gold Coast Country Music Festival. This report uses the new title.
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ITEM 8 (Continued) NEW MAJOR EVENT OPPORTUNITY (2018-2020) CS105/274/2017(P1)
Further detail is required and specific matters have yet to be determined and/or negotiated so this would be considered as an in-principle decision subject to Council’s satisfaction with those additional aspects.
5.2 Overview - Current Situation
Council officers have been talking with the Professional Bull Riding Association (PBR) about steering a Global World Cup event into the Gold Coast in 2018 (possibly for up to five years through to 2022), but preferably aligned with the term for support to the GCCMF.
The PBR Global Cup series will stop in Mexico, Canada, USA, Brazil and Australia. The PBR are currently considering their preferred Australian destination, ie Sydney, Melbourne or the Gold Coast.
Our intention would be to strategically place it on the weekend directly prior to the GCCMF so as to stretch the overnight stays from one weekend to the next. Representatives of GCCEC, TEQ, BAL, GCT etc have been involved in discussions in this regard.
The GCCEC has a pencil booking on the dates for the next five years and generally there is positivity from all that this would be a huge boost to the GCCMF Festival.
The city’s Major Events Calendar in July 2018 (and beyond) could potentially look like:
• Gold Coast Marathon – 1-2 July (ie the weekend of the first Sunday in July) • PBR Global Cup – 20 to 22 July (Broadbeach) • New ticketed concerts at GCCEC mid-week (Broadbeach) • GCCMF weekend – 27 to 29 July (Broadbeach
PBR are yet to provide a formal proposal with comprehensive detail to permit final evaluation and decision.
5.3 Event Organiser
To be confirmed.
(The discussions have been with Professional Bull Riders Association whereas the most- recent proposal is branded WME/IMG – see below).
5.4 PBR Snap Shot
WME/IMG (William Morris Endeavor / International Management Group) are a global leader in sports, fashion and media and are the sole owners of the PBR. While the events roots are deeply imbedded in American culture, the sport’s global interest is rapidly expanding. PBR currently have offices in America, Canada, Mexico and Australia. The Australian arm of the PBR (PBR Australia) is located in Townsville.
A high-level snap shot of PBR at the global level is:
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• PBR stages over 200 events each year • Over 500 riders compete in PBR events • PBR has a fan base of over 69 million people
5.5 PBR Tours
PBR stages events and tours around the world:
• North America: o Built Ford Tough Series: USA (January – November): The top 35 riders compete in this 27-city tour across USA that culminates every year at the PBR World Finals in Las Vegas. o Real Time Pain Relief Velocity Tour: USA (November – October): Offers established and emerging bull riders additional opportunities to qualify for the BFTS o Monster Energy Tour: Canada (June – November): Premier televised series in Canada featuring the top riders from all territories o Lucas Oil Challenge Tour: Mexico (March- November): Premier series in Mexico featuring the top riders from aII territories
• Brazil: o Monster Energy PBR Tour (April – September): Premier televised tour in Brazil, featuring top riders from all territories
• Australia: o Australian Cup Series (July- November): Premier televised series in Australia featuring the top riders from all territories. o Touring Pro Series (January- December): Qualifying tour for the Australian Cup Series
5.6 Global Cup concept
The proponents state that the PBR Global Cup is the most important international bull riding competition ever created. It transforms an individual performance-based sport into a team- based battle for national pride. An outline of the concept is provided below and in the Attachment to this report.
Only the best of the best from each country will earn the right to compete for their nation. Qualification will be based on the PBR World Standings ensuring the highest ranked bull riders from each territory are represented.
At each of the five annual events, the competition will take place over multiple days with teams amassing points from 14 of their highest scored qualified rides. The host country will enjoy a slight advantage by fielding a team of 14 riders while each visiting country will be made up of seven competitors.
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While the PBR operates in five separate countries, all points earned by the athletes count toward the PBR World Standings and the opportunity to qualify to compete at the PBR Built Ford Tough World Finals in Las Vegas each November, providing riders the opportunity to compete in the largest International bull riding competition ever created (see sketch in Figure 1 below).
Figure 1: Structure of Global Cup
5.7 Projected Attendance
The initial projections are shown in Figure 2 below. These, particularly the live event estimate, will require refinement and confirmation given the actual spectator capacity of GCECC in the layout required for the event.
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Figure 2: Attendance Projections (Initial)
The estimate of attendees by origin will be driven by the event marketing and promotion plan and may be difficult to achieve in the early years. The projection is:
• Local: 41% • Intrastate: 25% • Interstate: 27% • International: 7%
5.8 Television Coverage
The PBR Global Cup is an international TV product as well as a live event.
• Global Media Coverage over ten hours of live event TV coverage with estimated close to 50 million global viewers for each event • Domestic: In 2007 the Gold Coast hosted the PBR World Cup which was broadcast on Channel Nine to over 750,000 viewers
The expected worldwide TV distribution is shown in Figure 3 below.
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Figure 3: Worldwide TV Distribution
The Host Community will be provided with television and live event exposure elements within the broadcast of the PBR Global Cup.
• Custom TV Features: PBR will produce custom opening, bumper, features, billboards and closing segments throughout each broadcast that are focused driving awareness around the community and territory • In-Event (Venue) Branding: Custom branding featuring the Host Communities identifiers will be incorporated into high visible signage within the competition arena.
The estimated total television reach is 49.4 million comprising:
• Brazil - Globo TV 17 million • USA- CBS/ CBS Sportsnet 8.8 million • USA- Univision Hispanic 2 million • Australia- Channel 7/ Fox Sports 2 million • Canada- Rogers Sportsnet 1.6 million • Mexico- Televisa 2 million • International Broadcast Partners 16 million
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5.9 Social Media and Digital Landscape
PBR has a strong digital presence with solid social engagement and growth across all platforms.
Figure 4: Social Media and Digital Landscape
5.10 Marketing and Promotion
The PBR will employ a year-round marketing strategy designed to reach every bull riding fan through multiple touch points. The program will include elements designed to promote general tourism, television viewership and live event attendance utilizing both local and international assets.
Further details are provided in the Attachment (pages 13-16).
5.12 Funding Request and Host Community Deliverables
As one of only five host locations worldwide and the exclusive location in-territory, the Host Community will receive extensive and unique branding opportunities around the PBR GlobaI Cup.
As a key partner in development and growth of this marquis sporting event, Host Communities will be asked to deliver the following support: • Marketing: Promotion of the PBR Global Cup through all existing marketing channels • Corporate Partners: Introductions to corporate partners of the Host Community for potential support of the event • Government/ Local Officials: Introductions to local and regional government officials and assistance with obtaining any necessary permits or authorisations if needed
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• Financial Support: Contribution of $1,000,000 per year to the PBR Global Cup revenues.
It is difficult to compare events with other events in the city’s portfolio as they do not necessarily directly relate to others and there are other factors that are also considered during the evaluation process. .
However on the basis of information received so far, it seems to be similar to the Quiksilver Pro (world championship surfing event held around the world) in that it comprises the sport’s top athletes (contractually obligated to compete in the surfing series, which is not the case in the PBR event), attracts approximately the same number of visitors, and achieves a similar sized audience by way of global TV and online broadcasts. Although the surfing event is more closely aligned with and promotes the city’s image and the broadcast footage highlights the city’s coastal attractions, the PBR event offers synergies with the GCCMF.
The Table below summarises the comparison.
Aspect Quiksilver Pro PBR Global Cup (forecast) Contract Term Currently 3 years (2016-2018) Proposed 3 years (2018-2020) Investment $150,000pa $150,000pa - recommended Athletes/Competitors 40 men, 39 women 42 riders Attendance 30,000 total (6,000 unique 22,000 total persons)- Out-of-Region Attendance 48% 59% Broadcast Audience 54million worldwide (Facebook) 50million+ worldwide (TV)
In terms of investment and the economic benefit (both direct and indirect) the city receives, an appropriate level of investment could similar to that provided to Quiksilver Pro, ie up to $150,000 pa. As such, State Government funding support from TEQ will be almost certainly expected by PBR, and local sponsorship also sought.
6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND OPERATIONAL PLAN
Outcome 3.5: The community takes pride in its heritage and diversity:
3.5.1 Implement a rich cultural program incorporating festivals, events and activities which reflect and engage a socially diverse community.
Corporate Plan Key Focus Area: 5: A City with a thriving economy
Outcome 5.4: The lifestyle and opportunities are seen as advantages
5.4.1 Promote the city globally as a destination recognised for its business opportunities, lifestyle, livability, sustainability and its natural and built environment. 5.4.6 Attract and support events that produce economic and social benefits for the city and enhance the city’s image.
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5.5.3 Position and maintain the city as a recognised and vibrant destination for business, tourism and residents, highlighting major points of difference from competing cities and regions.
7 GOLD COAST 2018 COMMONWEALTH GAMES IMPACT
Not Applicable.
8 FUNDING AND RESOURCING REQUIREMENTS
Funding of $150,000 has been identified in the 2017/18 budget process.
9 RISK MANAGEMENT
The risk management responsibilities would lie with the event organiser and the venue manager.
10 STATUTORY MATTERS
As the event will be held in a venue not owned or controlled by Council, no Local Laws apply.
PBR has a strict policy regarding the welfare and treatment of animals and they are fully committed to ensuring the health, safety, welfare and respect of each bull that enters a PBR arena. Some key points highlights of this policy include:
• Redesigned entry chutes (eliminating leg injuries previously suffered by bulls) • Guidelines in-place for the transportation of bulls, including compulsory air suspension in trailers, maximum length of travel time in one day (10 hours) and minimum pen sizes • Strict dietary measures seeing bulls receive the highest quality grain and hay • On-call veterinarians • Strict guidelines for injured bulls
PBR believe they are one of the best prepared organisations in the world in this regard as they face animal welfare issues globally and PBR’s welfare policies far exceed the national expectations, to the point where the RSPCA is looking for other codes to follow PBR’s policies.
11 COUNCIL POLICIES
Not applicable.
12 DELEGATIONS
Not applicable
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13 COORDINATION & CONSULTATION
As this event is to be staged in a established, purpose-built venue that is not under Council’s control there has been no internal consultation to date.
Discussions have been held with representatives of PBR, CEO of City of Gold Coast, BAL, GCECC, TEQ, and GCT.
An indication of Council’s in-principle position, subject to additional information yet to be received and assessed, may optimise the time available to the Organiser for marketing and promotion, and clarify the potential synergies with GCCMF.
14 STAKEHOLDER IMPACTS
The stakeholders are those involved in the tourism industry across the city and in particular the Broadbeach area. This event would provide mutual benefit with the GCCMF, and the two events in a week apart may encourage longer stays by those attending each event.
As the event would be staged in the GCECC, purpose-built for such indoor events, there are expected to be no negative impacts.
15 TIMING
The event, if it is secured for the city, would to be held in July each year, commencing in 2018, to align with the GCCMF.
16 CONCLUSION
The event offers potential synergies and mutual benefits with the GCCMF as they are held within a week of each other. This event loses much of its appeal to the city if it is held at a different date as a stand-alone event.
It can be difficult to compare events with other events in the city’s portfolio as they do not necessarily directly relate with each other and there are other factors that are also considered during the evaluation process. .
However on the basis of information received so far, it seems to be similar to the Quiksilver Pro. Although the surfing event is more closely aligned with and promotes the city’s image and the broadcast footage highlights the city’s coastal attractions, the PBR event offers synergies with the GCCMF.
In terms of investment and the economic benefit (both direct and indirect) the city receives, an appropriate level of investment could similar to that provided to Quiksilver Pro, ie up to $150,000 pa. As such, State Government funding support from TEQ will be almost certainly expected by PBR, and local sponsorship also sought.
The submission so far received does not provide all required details to enable final assessment. Additional information required includes:
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• Details of the Event Organiser/Underwriter; • Confirmation of the dates and links to GCCMF dates, ie held on the weekend directly adjacent to the Broadbeach Country Music Festival • How the Organiser will ensure that the riders are, in fact, the top-ranking riders in the world; • Confirmation that the Gold Coast will be the only Australian event of the PBR Global Cup and that it would be the pre-eminent PBR event in Australia • Confirmation of the domestic TV broadcaster(s) and extent and timings of global and domestic TV coverage (live and delayed broadcasts); • Submission of detailed and comprehensive event budget; • Clarification of specific sponsor benefits to be provided to Council, including extent and nature of in-broadcast vignettes etc and other promotional pieces in international and domestic broadcasts; and • Other sponsor benefits.
It is not yet known if TEQ will provide support to the event, as similar additional information in a formal submission is required to enable TEQ officers to progress the assessment process. It is understood that TEQ will consider and evaluate a formal submission when it is received.
However, in order to progress this matter in step with the budget process and in step with consideration of additional funding for the GCCMF, Council may wish to indicate its likely level of support, subject to conditions including the provision of formal and complete proposal.
17 RECOMMENDATION
It is recommended that Council resolves as follows: 1 That the report/attachment be deemed non-confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009. 2 That the applicant be advised that Council would be prepared to consider providing support to the event of up to $150,000 per annum for up to three years, subject to: a. Submission of a formal and complete proposal that includes the additional details as outlined in the report, to the satisfaction of the Chief Executive Officer b. Provision of financial support to the event by Tourism and Events Queensland c. That the Chief Executive Officer be authorised to negotiate and execute an appropriate Agreement when the required additional detail is received. Author: Authorised by: Ray McNab Darren Scott Executive Officer City Events Director Economic Development and Major Projects 30 May 2017 iSpot # 62212405, #62292206
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COMMITTEE RECOMMENDATION moved Cr Crichlow seconded Cr Taylor
1 That the report/attachment be deemed non-confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009. 2 That the applicant be advised that Council would be prepared to consider providing support to the event of up to $150,000 per annum for up to three years, subject to: a. Submission of a formal and complete proposal that includes the additional details as outlined in the report, to the satisfaction of the Chief Executive Officer b. Provision of financial support to the event by Tourism and Events Queensland c. That the Chief Executive Officer be authorised to negotiate and execute an appropriate Agreement when the required additional detail is received.
CARRIED BY SUPER MAJORITY
Cr La Castra requested his vote be recorded in the negative.
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Attachment
REDACTED
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ITEM 9 OFFICE OF THE CHIEF EXECUTIVE OFFICER CAPITALISATION OF TYPE 1 BUSINESS ACTIVITIES FN334/375/19(P1)
COMMITTEE RECOMMENDATION moved Cr Owen-Jones seconded Cr Vorster
1 That the briefing note be deemed non confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171(3) and 200(5) of the Local Government Act 2009. 2 That Council adopt a revised capital structure for Gold Coast Water and Waste, as detailed in the CEO’s advice of 1 June 2017, 3 That the implementation be subject to confirmation from Queensland Competition Authority as to acceptability of 2 above.
CARRIED
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ITEM 10 ORGANISATIONAL SERVICES LEASES FOR COUNCIL PARKLAND AREAS AND SECURITY GATEHOUSE – SOVEREIGN ISLANDS LG282/07(P2) Refer 4 page attachment
1 BASIS FOR CONFIDENTIALITY
1.1 I recommend that this report be considered in Closed Session pursuant to section 275 (1) of the Local Government Regulation 2012 for the reason that the matter involves
(c) the local government’s budget; or (h) other business for which a public discussion would be likely to prejudice the interests of the local government or someone else, or enable a person to gain a financial advantage.
1.2 I recommend that the report/attachment be deemed non-confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.
2 EXECUTIVE SUMMARY
Not Applicable.
3 PURPOSE OF REPORT
To detail the history of tenure arrangements for the Sovereign Islands, Paradise Point and seek funding in the 2017-18 budget to engages a specialist contractor to prepare a report on each parkland lot on the Island (including current standard of maintenance, ongoing operational costs and expected renewal costs) in order to provide advice to Council on its future consideration of options available in relation to maintenance responsibilities for the park areas.
4 PREVIOUS RESOLUTIONS
Not Applicable.
5 DISCUSSION
Background History – Tenure Issues for Sovereign Islands
The Sovereign Islands estate at Paradise Point consists of six separate islands linked to each other and the mainland by bridges. The estate was developed progressively from the mid-1980s and is comprised of about 650 lots, the vast majority of which are residential sites.
When the Islands were originally developed, they mostly mirrored a standard residential subdivision. In particular, roads were dedicated for public use, parkland lots were transferred to City ownership and all bridges and other services (water, sewerage and drainage) fell to the City to provide in respect of maintenance and repairs after handover.
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ITEM 10 (Continued) LEASES FOR COUNCIL PARKLAND AREAS AND SECURITY GATEHOUSE – SOVEREIGN ISLANDS LG282/07(P2)
A special tenure arrangement exists at the Sovereign Islands where both the City freehold parkland lots and a security gatehouse lot at the entrance to the Islands are leased to non- profit private companies. Such titling arrangements are unique within the City.
Parkland and Security Gatehouse Leases
The schedule in Attachment 1 details a number of standalone City freehold lots on the Islands and the leases which currently exist over these respective lots. The aerial photograph in Attachment 2 offers a visual depiction of the lots under discussion.
Originally, the Sovereign Islands were areas of land reclaimed from the Broadwater. Once reclaimed, the island areas were subdivided under the approval processes of the City.
At the time of instigation of the subdivision processes, the original developer sought agreement from the City on two unique outcomes:
1. that Island parkland lots, once transferred to City ownership and control consistent with any other subdivision, be subject to a ‘lease back’ to entities created for the specific purpose of providing for the ongoing maintenance of the parkland lots; and
2. that a single lot be created at the entrance to the Sovereign Islands, that such lot be transferred to City ownership and control, and for such lot to then be leased back to an entity for the specific purpose of providing for a security gatehouse to the Islands.
Broadly, the details of the respective 99 year parkland and security gatehouse leases provide the following:
Parkland Leases
− that the lessee pay all rates and land tax (if applicable); − that the lessee hold public liability insurance; − that the lessee ensure that the general public has unhindered access to the parkland lots, that is, the parkland lots were not to be held exclusively for Island residents; − that the parkland lots be used solely for passive recreational purposes, that is, not organised events such as weddings, concerts etc; and − that the lessee meets all costs for repairs and maintenance of the parkland lots.
Security Gatehouse Lease
− that the lessee pay all rates and land tax (if applicable); − that the lessee hold public liability and building insurance; − that the gatehouse lot provide a base for an Island security service to benefit residents but not to unduly impede general public access to the Islands; − that the lessee meets all costs of repairs and maintenance of the security gatehouse building on the leased lot.
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ITEM 10 (Continued) LEASES FOR COUNCIL PARKLAND AREAS AND SECURITY GATEHOUSE – SOVEREIGN ISLANDS LG282/07(P2)
Purpose of the ‘lease back’ scenarios
As mentioned above, the Sovereign Islands were created progressively from the mid-1980s. While the Building Units and Group Titles Act 1980 was in existence at the time of the development of the Sovereign Islands, it is not readily clear why this legislation did not prevail to create a ‘gated community’ for the Islands as was occurring elsewhere in the City.
Perusal of the City’s files suggests what these reasons may have been. Firstly, it is noted that all roads and bridges associated with the Sovereign Islands development fell to City control after they were completed. This suggests it was never the intent of the developer that Island residents would be responsible for the costs of maintaining the bridges and road corridors, as would have occurred if a gated community was created, but that such costs over time would fall to the City.
Likewise in respect of water, sewer and drainage services on the Sovereign Islands – after construction, such works were transferred to City control. Again, with this transfer of control, came ongoing repairs and maintenance responsibilities as well as costs for the City.
It is clear that both the developer and Council, at the time, were of the view that the Sovereign Islands were not to be seen as an exclusive gated community. However, this did not mean that certain attractions of gated communities could not be imported to the Sovereign Islands. This is reflected in the outcomes for the leases over the parkland lots and security gatehouse.
In essence, the developer put the case that the parkland areas on the Sovereign Islands deserved better ongoing maintenance and repairs than would routinely be provided by the City, no doubt based on the significant embellishments that were installed at the time (see Attachment 4). With regard to the security gatehouse, the case was put that it would serve as an attraction for both intending buyers and ongoing residents of the Islands. In each case, the Council of the day agreed and the scheme developed as it did – with parkland lots and the security gatehouse lot coming into City ownership and then, in each case, long-term leases being issued to entities that would fund the respective management and maintenance outcomes for the benefit of all Island residents and specifically in respect of the parkland lots, for the wider general public.
Current day situation
To consider the current concerns of Island residents, it is necessary to understand the structure of the companies which presently hold leases over the parkland lots and security gatehouse lot on the Islands.
As shown in Attachment 1, each of the respective lots is held by non-profit companies. Each of the companies is limited by guarantee, that is, non-profit to the extent that all revenues are then to be expended for the purpose for which the revenues were raised.
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The Articles of Association for the respective companies are consistent ie:
. full members of the companies shall be those who purchase a lot on the Sovereign Islands; . full members of the companies shall make a contribution to the company; . contributions are to be determined on a yearly basis to meet the costs, charges and expenses of the company in performing the primary function of the company; and . the primary function of the companies was to hold and then exercise and perform under the leases held by the respective company.
While seemingly a simple structure, over time anomalies have arisen where the more recent sale of lots on the Islands has led to an incoming purchaser not becoming a member of the lessee companies. Whether by design or otherwise, contractual obligations alone have failed to curtail an ever-growing pool of new owners on the Islands not becoming members of the lessee companies. This means that they cannot be levied for a contribution towards the running costs of these companies. Currently, approximately 10 per cent of lot holders are not members of the lessee companies (i.e. 600 are members while 60 are not).
Over time, this has led to a shortfall in operating revenues for the respective companies, with the shortfall being around REDACTED . Moreover, there is little prospect that expenditure costs can be cut without negatively impacting on the ability of these lessee companies to perform their leasehold obligations.
Approaches received from island residents
Current day residents of the Sovereign Islands have created an Incorporated Entity (Sovereign Islands Owners Association Incorporated – ‘SIOA’) so as to unify their voice in dialogue with the City. Attachment 3 details the Association’s current request to the City, with the substantive points being:
i) that the intent is for the parkland leases to be surrendered and for the City to take responsibility for the maintenance of parkland lots on the Islands commensurate with how the City already provides maintenance for all other parkland areas in the City; ii) whether, for parkland areas, SIOA wishes to continue to maintain hardscaped areas at its own cost and if so, whether Council would be prepared to facilitate such by the grant of a licence to the SIOA giving them rights to enter upon the parkland areas after lease surrender; and iii) that the SIOA will, via a transfer of lease (i.e. transfer from current lessee company to SIOA), assume the responsibilities for the security gatehouse lease.
When considering the Association’s request, it is pertinent that Council have regard to what was documented in respect of the parkland leases via the subdivisional processes which date back more than 25 years. Specifically, the Council of the day acknowledged that at some stage in the future the lessee companies may not be able to perform under the leases entered into, creating a default scenario. In doing so, it can be inferred that default by one or more of these non-profit companies was always a potential outcome which was understood by all at inception.
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ITEM 10 (Continued) LEASES FOR COUNCIL PARKLAND AREAS AND SECURITY GATEHOUSE – SOVEREIGN ISLANDS LG282/07(P2)
While there is no indication that a default under the current leases is imminent, the SIOA’s request strongly suggests that a majority of the land owners on the Sovereign Islands no longer desire these non-profit companies hold leases on their behalf. Thus, the original intent for the leases (i.e. that the parkland lots deserved better ongoing maintenance and repairs than would routinely be provided by the City), is seemingly no longer an issue for island landowners and that they are happy to rely on the City performing this service in the way it consistently does across all parklands on the Gold Coast.
In respect of the security gatehouse lease, however, the SIOA advises that it desires that such lease arrangement continue and from the City’s perspective, there is no known reason why that arrangement should not continue. While the general public under the terms of the lease have unhindered access to all parks on the Islands and that would not change if the leases were surrendered, anecdotal evidence suggests that the public has occasionally been moved on by privately arranged security services which would end if the nexus between the residents and parkland areas was broken. Irrespective, island residents must see ongoing value in the private provision of security services for island residents, albeit parkland areas would be excluded from any specific attention upon lease surrenders.
It is obvious that the intent of the 100 year leases over the parks was to allow them to be developed and maintained to a high level resort standard (see Attachment 4). Indeed, the design and construction of parkland infrastructure and tree and plant selections on the Islands are generally not of a type that the City would provide based on cost, safety, accessibility and maintenance considerations. This is evidenced by the extensive use of fountains, stepping stones, up lighting, irrigation systems and other difficult and costly to maintain infrastructure found on the Islands.
Discussions with SIOA
For a little over two years, discussions with the SIOA have been ongoing in an endeavour to find a way forward. Initially, discussions centred around the City establishing a special rate or charge (s.94 of the Local Government Act) to ‘recapture’ all island residents into one financial process to fund park maintenance activities.
The intent of such a charge would be to ensure that all rateable properties on the Sovereign Islands paid the required charge to cover the lessee company responsibilities. Special rates or charges are for services, facilities or activities that have a special association with particular land because of one or more of 4 stated grounds.
The 4 stated grounds on which a special rate or charge may be levied are:
1. land or its occupier, specially benefits from the service, facility or activity;
2. land or its occupier, has or will have special access to the service, facility or activity;
3. land is, or will be, used in a way that specially contributes to the need for the service, facility or activity;
4. the occupier of land specially contributes to the need for the service, facility or activity.
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ITEM 10 (Continued) LEASES FOR COUNCIL PARKLAND AREAS AND SECURITY GATEHOUSE – SOVEREIGN ISLANDS LG282/07(P2)
There are strict requirements under the Local Government Regulation 2012 for the levying of special rates or charges. These are contained in section 94 which provides that:
1. The local government’s resolution to levy special rates or charges must identify: a. the rateable land to which the special rates or charges apply; and b. the overall plan for the service, facility or activity to which the special rates or charges apply 2. The overall plan is a document that must: a. describe the relevant service, facility or activity; b. identify the rateable land to which the special rates or charges apply; c. state the estimated cost of carrying out the overall plan; and d. state the estimated time for carrying out the overall plan 3. If an overall plan is for more than 1 year, Council must also adopt an annual implementation plan for each year. 4. An annual implementation plan must set out the actions or processes that are to be carried out by Council in the relevant year for the service, facility or activity to which the special rate or charge applies.
REDACTED
Further, and as noted previously in this report, at least some owners of parcels on Sovereign Islands do not contribute to park maintenance costs at present, presumably as they hold the position that at the time of their purchase on the Islands that the parks do not provide them any special benefit. REDACTED
Special Council Meeting 19 June 2017 81 Special Budget Committee Meeting 2 June 2017 Adopted Report
ITEM 10 (Continued) LEASES FOR COUNCIL PARKLAND AREAS AND SECURITY GATEHOUSE – SOVEREIGN ISLANDS LG282/07(P2)
There are examples, however, (Emerald Lakes, Coomera/Pimpama areas) where recent parkland dedications to Council have occurred where embellishments above that normally entertained by Council have been in place. In these circumstances, bodies corporate have been in place and the City has facilitated the outcomes sought by the grant of licences enabling third parties (ie contractors acting for the body corporate) to access park areas to perform maintenance works. There are some obvious similarities between such an approach and to that now being advanced for the Sovereign Islands, albeit a body corporate does not exist but an incorporated entity (SIOA) is in place.
Suggested way forward
Noting that the parkland leases require that the general public have access to Sovereign Island park areas, it is not open to the City to stand aside and simply observe a deteriorating situation in respect of the ongoing management of the parkland areas. The City is on notice that difficulties now exist in the scheme that was endorsed for the management of parkland areas more than 25 years ago, that it is probable in time that those difficulties will escalate and that the likely consequence is that the City will inherit, if it already hasn’t, public liability responsibilities.
The recommendations in this report propose a systematic approach to address the current situation, with some initial seed funding of $60,000 needed to better clarify the extent of maintenance issues pertaining to the parkland areas.
6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND OPERATIONAL PLAN
The best place to live and visit
1.1 Our City provides a choice of liveable places Plan for appropriate community infrastructure and facilities for residents across the City
1.6 Our modern centres create vibrant communities Encourage open and accessible public space in high density areas, bringing communities together through social connection in parklands
7 GOLD COAST 2018 COMMONWEALTH GAMES™ IMPACT
Not Applicable.
Special Council Meeting 19 June 2017 82 Special Budget Committee Meeting 2 June 2017 Adopted Report
ITEM 10 (Continued) LEASES FOR COUNCIL PARKLAND AREAS AND SECURITY GATEHOUSE – SOVEREIGN ISLANDS LG282/07(P2)
8 FUNDING AND RESOURCING REQUIREMENTS
Existing leases require a sinking fund, however, this seems to have been used to fund maintenance as opposed to asset renewal work. Preliminary inspections indicate that many parkland assets need some level of rectification and if the City was to assume responsibility as requested by Island residents it would only be on the basis that all assets on parkland lots would be condition assessed to clearly define the City’s responsibility (i.e. routine maintenance of the lots as though in an unembellished state, that is, “grass cutting and tree trimming”) and the SIOA’s responsibility (i.e. maintenance of hardscape features such as fountains, stepping stones, uplights, irrigation systems etc). However, it is the case that at this initial stage it is premature to assume a City position, certainly in absence of the recommendations in this report being implemented.
In respect of the parkland lots, officers estimate the cost of the City assuming parkland maintenance on the Sovereign Islands to be around. REDACTED This cost estimate is based on delivering a service standard generally consistent with highly embellished parkland areas across the City and it can therefore be expected that with the exclusion of more costly hardscape features falling to the City to fund that annual City borne costs might approach the same level as that currently being expended by the SIOA.
9 RISK MANAGEMENT
Not Applicable.
10 STATUTORY MATTERS
Not Applicable.
11 COUNCIL POLICIES
Not Applicable.
12 DELEGATIONS
Not Applicable.
Special Council Meeting 19 June 2017 83 Special Budget Committee Meeting 2 June 2017 Adopted Report
ITEM 10 (Continued) LEASES FOR COUNCIL PARKLAND AREAS AND SECURITY GATEHOUSE – SOVEREIGN ISLANDS LG282/07(P2)
13 COORDINATION & CONSULTATION
Name and/or Title of the Directorate or Is the Stakeholder Satisfied Stakeholder Consulted Organisation With Content of Report and Recommendations (Yes/No) (comment as appropriate) Manager Parks & Community Services Yes Recreational Services Chief Operating Officer OCEO Yes City Solicitor OCEO Yes
14 STAKEHOLDER IMPACTS
The road reserves and verges on the Sovereign Islands have always been the responsibility of the City to maintain, albeit the non-profit companies and the original developer of the Islands undertook tree and palm maintenance including the 300 or more, poorly established and advanced Canary Island Palms. Historically, the Island residents engaged contractors to perform works at service levels far greater than the City typically provides across its parks and streetscapes. Maintenance of such ‘resort-like’ environs was likely a key aspect of the developer’s marketing strategy.
While the City scores relatively well in customer service surveys for its maintenance of parks across the Gold Coast, the Sovereign Islands residents potential expectations of resort style levels of maintenance would not be realised in the event of lease surrenders proceeding.
It could be assumed, that given the high levels of service performed to streets and parks during the term of the subject leases, the service offered by the City is unlikely to ever meet resident expectations. That said, it is certainly not considered equitable to provide significantly increased levels of service from that offered to other parts of the City, as this would attract criticism from comparatively less serviced areas.
Therefore, it is important that Council consider the options it may apply with regard to a decision to accept such responsibility.
Option 1 Reject any consideration of taking on maintenance responsibilities on the areas under lease and leave such matters with the residents of the Sovereign Islands. For the reasons already mentioned, this option would not distance the City from potential public liability issues.
Option 2 Assume responsibility but only for the softscape features in Sovereign Island parks and, as per usual, mobilise both internal and external resources to undertake maintenance tasks to the service levels currently afforded to all other areas of the city with such to be accompanied by written confirmation from the SIOA that hardscape feature maintenance will remain the responsibility of the SIOA, failing which they would be progressively removed over time.
Special Council Meeting 19 June 2017 84 Special Budget Committee Meeting 2 June 2017 Adopted Report
ITEM 10 (Continued) LEASES FOR COUNCIL PARKLAND AREAS AND SECURITY GATEHOUSE – SOVEREIGN ISLANDS LG282/07(P2)
Option 3 Further consider the establishment of a special rate or charge where the rateable properties would be charged for a higher level of service including hardscape maintenance. This option, if pursued, requires further investigation into the nature of the service, facility or activities contemplated to be funded by the special rate or charge and advice sought as to whether such a charge could be lawfully levied and then, in respect of what proportion of costs would need to be met by the City.
15 TIMING
Residents have requested the Council assume control of parkland areas as soon as possible.
16 CONCLUSION
The Sovereign Islands are unique in the City to the extent that parkland lots are held under leases by private non-profit companies charged with the ongoing repairs and maintenance of the parkland areas.
The SIOA, representing Sovereign Islands land owners, and by extension the lessee companies, has approached the City requesting that the parkland leases now be surrendered and for the City to assume the repairs and maintenance of the parkland lots.
There exist both advantages and disadvantages for the City in taking over the leased areas of parkland on the Sovereign Islands, which are outlined in the table below.
ADVANTAGES DISADVANTAGES Resolves unfair situation as a reducing Additional costs to City number of property owners are paying the cost of maintenance at present. Should be treated like any other Increased public liability (but where the City is subdivision in the city. already on notice of difficulties with ongoing maintenance of parkland areas). Pre-empts and resolves risks that default Possible precedent with other Body Corporates by Lessee is probable at some point. maintaining parkland assets. Owners’ representative entity (SIOA) will Residents have track record of high service be supportive. expectations and meeting these expectations could be problematic. Will ensure less chance that public is Potential for increased complaints from Islands moved on. residents over time Will allow promotion of 1 water front park, May be seen as favouring a particular group within and other local parks. the community, with no demonstrated hardship. Improved asset management. Upfront works required to bring standard in line with other parks (e.g. trip hazards, electrical works, furniture replacement, etc) will need to be identified for the early attention of SIOA.
Given the above, it is conceivable that there are differing views on the appropriate response to the request by the residents and these views can be reflected as three options:
Special Council Meeting 19 June 2017 85 Special Budget Committee Meeting 2 June 2017 Adopted Report
ITEM 10 (Continued) LEASES FOR COUNCIL PARKLAND AREAS AND SECURITY GATEHOUSE – SOVEREIGN ISLANDS LG282/07(P2)
Option 1 The City does not assume responsibility for park areas and the leases remain with the respective companies
1. 99 year leases are valid 2. Additional cost to City alleviated 3. Already experienced very high expectations for service delivery from residents 4. Cannot reasonably be seen to be causing hardship 5. Will minimise public liability (unlikely a supportable position if a claim arises and a well- informed party seeks redress from the City as distinct from a non-profit company with few/minimal assets 6. Avoids any precedent with body corporates seeking to renege on existing maintenance agreements (which again have been entered into in the knowledge that the wider public may well hold the City responsible for events which arise from unsatisfactory maintenance etc)
Option 2 The City does assume part responsibility for park areas
1. Residents pay $2.5m in rates 2. Unfair situation as a reducing number of property owners are paying the cost of maintenance 3. Anecdotal evidence that public is “moved on” from parks (Gatehouse retained by SIOA) 4. Owners’ representative entity (SIOA) will be supportive 5. Views that default by Lessees is probable at some point
Option 3 The City seeks to levy a Special Rate or charge
1. The City utilises its statutory powers to implement through rating processes the collection of funds from Island owners to fund the ongoing park maintenance responsibilities
Having regard to all of the above, options 2 and 3 adopt the position that the approach articulated in option 1 would be untenable as it will simply defer the matter for consideration to another day when more and more owners simply refuse to pay levies to the current lessee companies, debts escalate, service providers refuse to maintain the parkland areas and the City is faced with precluding any public use of the parkland lots due to concerns for public safety.
The recommendations in this report seek a financial allocation of $60,000 to be considered as part of the 2017-18 budget to enable the engagement of a specialist contractor to prepare a report on each of the parkland lots to define in detail what special features exist on each lot, their current standard of maintenance, their ongoing operational costs, expected renewal costs, potential removal costs etc. This will provide Council with information required to objectively assess the options detailed above, and make a considered and sustainable decision which clarifies Council’s potential public liability and liability generally.
This report can then be utilised to better define the nature of further discussions with the SIOA on lease surrenders.
Special Council Meeting 19 June 2017 86 Special Budget Committee Meeting 2 June 2017 Adopted Report
ITEM 10 (Continued) LEASES FOR COUNCIL PARKLAND AREAS AND SECURITY GATEHOUSE – SOVEREIGN ISLANDS LG282/07(P2)
17 RECOMMENDATION
It is recommended that Council resolves as follows:
1 That the report/attachment be deemed non-confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009. 2 That having regard to the approaches from the Sovereign Islands Owners Association Incorporated (SIOA), and subject to required funding being provided, the Chief Executive Officer engage a suitably qualified consultant to prepare a detailed report on parkland lots on Sovereign Islands to inform Council’s future consideration of this matter. 3 That in accordance with part 2 above, an allocation of $60,000 to fund the specialist engagement be included in the 2017-18 budget. 4 That upon receipt of the specialist’s report and its proper consideration, further discussions occur with the SIOA with the outcome of those discussions to be subject to a further report to Council prior to the adoption of any determined position.
Author: Authorised by: Brendan Madden Glen Potter Manager Property Services Director Organisational Services 24 February 2017 TRACKS REF: 61792963
COMMITTEE RECOMMENDATION moved Cr O’Neill seconded Cr P J Young
1 That the report/attachment be deemed non-confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009. 2 That having regard to the approaches from the Sovereign Islands Owners Association Incorporated (SIOA), and subject to required funding being provided, the Chief Executive Officer engage a suitably qualified consultant to prepare a detailed report on parkland lots on Sovereign Islands to inform Council’s future consideration of this matter. 3 That in accordance with part 2 above, an allocation of $60,000 to fund the specialist engagement be included in the 2017-18 budget. 4 That upon receipt of the specialist’s report and its proper consideration, further discussions occur with the SIOA with the outcome of those discussions to be subject to a further report to Council prior to the adoption of any determined position.
CARRIED
Special Council Meeting 19 June 2017 87 Special Budget Committee Meeting 2 June 2017 Adopted Report
ITEM 10 (Continued) LEASES FOR COUNCIL PARKLAND AREAS AND SECURITY GATEHOUSE – SOVEREIGN ISLANDS LG282/07(P2)
Special Council Meeting 19 June 2017 88 Special Budget Committee Meeting 2 June 2017 Adopted Report
ITEM 10 (Continued) LEASES FOR COUNCIL PARKLAND AREAS AND SECURITY GATEHOUSE – SOVEREIGN ISLANDS LG282/07(P2)
Special Council Meeting 19 June 2017 89 Special Budget Committee Meeting 2 June 2017 Adopted Report
ITEM 10 (Continued) LEASES FOR COUNCIL PARKLAND AREAS AND SECURITY GATEHOUSE – SOVEREIGN ISLANDS LG282/07(P2)
Special Council Meeting 19 June 2017 90 Special Budget Committee Meeting 2 June 2017 Adopted Report
ITEM 10 (Continued) LEASES FOR COUNCIL PARKLAND AREAS AND SECURITY GATEHOUSE – SOVEREIGN ISLANDS LG282/07(P2)
Special Council Meeting 19 June 2017 91 Special Budget Committee Meeting 2 June 2017 Adopted Report
ITEM 10 (Continued) LEASES FOR COUNCIL PARKLAND AREAS AND SECURITY GATEHOUSE – SOVEREIGN ISLANDS LG282/07(P2) Attachment 4
Special Council Meeting 19 June 2017 92 Special Budget Committee Meeting 2 June 2017 Adopted Report
ITEM 11 OFFICE OF THE CHIEF EXECUTIVE OFFICER CONSIDER RESPONSES TO QUESTIONS FROM REVIEW OF DRAFT BUDGET DOCUMENTS FN334/375/19(P1)
Further draft 2017-18 budget inclusions and exclusions were determined.
Special Council Meeting 19 June 2017 93 Special Budget Committee Meeting 2 June 2017 Adopted Report
CLOSED SESSION LOCAL GOVERNMENT ACT 2009 AND SUPPORTING REGULATIONS
PROCEDURAL MOTION moved Cr Gates seconded Cr Baildon
That the Committee move into Closed Session pursuant to section 275 (1) of the Local Government Regulation 2012, for the consideration of the following items for the reasons shown:-
Item Subject Reason
12 Staffing Matter Staffing Matter
CARRIED
PROCEDURAL MOTION moved Cr Gates seconded Cr Baildon
That the Committee move into Open Session.
CARRIED
There being no further business the meeting closed at 2.45pm.
Special Council Meeting 19 June 2017 94 Special Budget Committee Meeting 2 June 2017 Adopted Report
These Pages
Numbered 1 to 94
Constitute The Adopted Report Of The Meeting
Of The Special Budget Committee
Held Friday 2 June 2017