06 Council Controlled Organisations Te Mana Whakahaere ō Te Kaunihera
COUNCIL CONTROLLED ORGANISATIONS 199
Council Controlled Organisations
Council-controlled organisations (CCOs) give a local authority the opportunity to engage people with the right skills and experience to focus on operating a business or other undertaking on behalf of the local authority.
To achieve specific objectives for Tauranga, the council has established several Council-controlled organisations. WOULD YOU LIKE TO KNOW MORE? These organisations, supported by Tauranga City Council, manage council facilities and/or deliver significant services on behalf of the council and the Tauranga community. For further information, please see the individual These include: CCOs’ statements of intent and annual reports, which are available via their websites: • Bay Venues Limited (BVL) www.bayvenues.co.nz • Western Bay of Plenty Tourism and Visitors Trust, trading as Tourism Bay of Plenty (TBOP) www.bayofplentynz.com
• Local Government Funding Agency Limited (LGFA) www.lgfa.co.nz
• Bay of Plenty Local Authority Shared Services www.boplass.co.nz (BOPLASS) www.artgallery.org.nz • Tauranga Art Gallery Trust (TAGT).
These organisations have each developed and approved a statement of intent with Tauranga City Council. The following section outlines each of these organisations, explains what they do and what they have achieved over the past year, and sets out an overview of their performance. Targets set are included in each CCO’s statement of intent. 200 ANNUAL REPORT 2018/19
Bay Venues Limited
What we do Our highlights for 2018/19
• Bay Venues Limited (BVL) manages recreation and ADAMS ACADEMY community facilities on behalf of Tauranga City Council. Based at the University of Waikato Adams Centre for Bay Venues is 100% owned by Tauranga City Council. High Performance, the Adams Academy has 60 high • BVL’s mandate is to manage and operate venues within performance rated athletes from over 15 different sports the company’s portfolio, providing a high standard such as Sport Climbing, Judo, Swimming, Rowing to name of sport, recreation, event and exhibition facilities, a few. This Adams Academy offers sport specific strength programmes and services to the residents of Tauranga and conditioning programme targeted at local developing and visitors to the area. athletes with high performance potential. Eligible athletes are offered support services alongside the strength and • There are 24 venues in the Bay Venues network conditioning such as nutritional, sport psychology, and including Trustpower Baypark, Mount Hot Pools, discounted physiotherapy sessions thanks to our partners University of Waikato Adams High Performance Centre at the Centre. The Academy is sponsored by philanthropist and Baywave, plus a number of community centres, Sir Paul Adams. halls and community pools.
BAY DREAMS 2019
30,000 people came to Trustpower Baypark on 2 January 2019 to enjoy over 40 national and international acts over four stages throughout the Baypark site as part of the Bay Dreams festival. Promoters Pato Entertainment, Audiology, along with Bay Venues Limited and other key stakeholders such as New Zealand Police, Fulton Hogan, New Zealand Transport Agency, Tauranga City Council, Bay of Plenty Regional Council, and Platform 4 undertook a year of planning to ensure all attendees had a memorable time in a safe and secure environment to enjoy a variety of experiences during the 10.5 hour event.
BAYSWIM
BaySwim completed a very good year. Under the guidance of a new manager, it has grown in delivery of programmes of all ages during the year. We have worked with over ten schools to deliver the Water Skills for Life education programme, another six schools for swimming lessons and our team of swim instructors travelled to four schools to provide lessons within their own swimming pool. One initiative which we are particularly proud of the team is the delivery of adult lessons meeting the needs of our culturally diverse community. COUNCIL CONTROLLED ORGANISATIONS 201
Challenges for 2018/19 Looking ahead for 2019/20 The job market continues to prove a challenge for our team Baywave Aquatic and Leisure Centre is undertaking a in terms of recruiting for the organisation. An example is large remediation and rejuvenation project in the first the difficulty of securing lifeguards to cover our pools. quarter of the 2019/20 financial year. The aquatic facility This has been a particularly testing process this year and will be closed completely for three weeks and then a we understand it is the same across a number of aquatic staged opening through to 5 August with completion facilities in the country. The job market is tight and whilst late September. There will be new aqua play areas we provide full training and support for our staff, potential and changing rooms along with significant amount of employees are sought after by an active employment maintenance work. The Centre will also have remedial environment. work undertaken to the plant room, concrete beams and hydroslide. We have commenced a review of how we engage with our customers as we look to move into a more digital sphere 2020 Pacific Rim Gymnastics Championships - Over 21 to meet the demands of a modern society where there is Pacific Rim nations will be welcomed to Tauranga in April expectation to be able to communicate, seek information, 2020 when Gymnastics New Zealand host the bi-annual book, order, review and pay for programmes, bookings, Pacific Rim Gymnastic Championships at Trustpower swimming lanes to name a few. This is a significant piece Baypark. These prestigious championships bring together of work that we will be undertaking and we believe the the very best of men’s and women’s artistic, rhythmic and efficiency and the improvements that will result will prove trampoline gymnastics. The event will have exclusive use beneficial for all of our customers. of the entire Baypark site and see some 8,000 athletes and supporters in attendance during the event. Tauranga experienced a long hot and dry summer period which in turn had an adverse effect on attendances at During the 2018 Long-term Plan, BVL received approval to both the indoor swimming pools and the Mount Hot Pools. undertake a feasibility study for a potential recreation and Whilst Tauranga had plenty of visitors to the area, they leisure facility at Memorial Park in the heart of Tauranga. chose to spend time at the beaches instead. Adapting to We are a significant way through this project and will the changing weather patterns is something that we are present a final Feasibility Study to the Board of BVL in addressing this coming year. December 2019 followed by presentation to Tauranga City Council Elected Members. 202 ANNUAL REPORT 2018/19
PERFORMANCE MEASURES
Activity Target Weighting Status Comments
We have continued to show a Declining trend in facility related declining trend in facility related Health & Safety incidents measured from 10% incidents in comparison to the previous year. 2017/18 year. With 204 incidents last Achieved. year against 144 for the FY19.
Asset management: Rated on There have been no asset zero major service disruptions management related service Asset Management > 4 hours due to asset 10% disruptions over four hours during maintenance of operational the year. deficiencies Achieved.
Staff turnover concluded the year Turnover of permanent staff at 31.7%. The result is a downward People trending downwards measured 10% trend for the year due to a targeted from previous year. and focussed action plan. Achieved.
85% of respondents in annual Annual Survey was completed customer survey are satisfied or by DELVE in May 2019. Overall Customer Satisfaction 20% higher with the overall customer Customer Satisfaction for the Bay experience received. Venues Network was 88%. Achieved.
Meet at least 85% of the 34 91% of our performance objectives performance objectives and and measures were met. Three measures within the Contract measures were not met during the Community Outputs 20% for the Supply of Community year relating to three year average Facilities and Services with utilisation across the indoor sports, Achieved. TCC. aquatics and community halls.
Revenue - $19,553,516.
1% behind an adjusted budget of $19,696,255 due to change in Revenue – Achieve $22,378,000 10% partnership structure of BayDreams music festival. Not achieved. Financial
EBITDA - $117,791.
Shortfall to budget due to lower EBITDA – Achieve $422,000 10% than anticipated aquatic visitors and volumes into our OSCAR / Not achieved. Baystation business.
TCC fee for service per user ratio TCC Fee for Service per user Return on Investment 10% improved marginally in comparison ratio is trending downwards with the previous year. Achieved. COUNCIL CONTROLLED ORGANISATIONS 203
FINANCIAL PERFORMANCE
2019 2018 Actual Actual $000's $000's
Revenue 22,510 26,770
Expenditure 26,612 29,612
Surplus/(Deficit) (4,102) (2,842)
Tax Benefit/(Expense) 882 1,570
Net Surplus/(Deficit) After Tax for Year (3,220) (1,272)
INCOME DERIVED FROM COUNCIL
2019 2018 Actual Actual $000's $000's
Debt Servicing Grant 520 520
The University of Waikato Adams Centre for High Performance Grant - 475
Operational Grant 2,767 2,584
Renewal Funding Grant 2,437 3,133
Total Council Derived Income 5,724 6,712
* 2019 Further Renewal Funding Grant of $980k is recognised in Income in Advance. 204 ANNUAL REPORT 2018/19
Tourism Bay of Plenty
What we do Challenges for 2018/19 • The Western Bay of Plenty Tourism and Visitor Trust, • The delay in funding approval and momentum for Te trading as Tourism Bay of Plenty (TBOP), supports the Tomokanga. council’s vision to support community wellbeing in • The lack of hotel and other accommodation order to provide a higher standard of living for all. infrastructure is having an adverse effect on • This CCO is owned by Tauranga City Council and international and business market growth. Western Bay of Plenty District Council. • The dearth of reliable tourism data and insights • TBOP takes the leading role in sustainable growth available at the regional level. of the Western Bay of Plenty visitor economy and management of the destination. Looking ahead for 2019/20 • TBOP’s vision is to “share our love of the Bay of Plenty • TBOP’s vision is to “share our love of the Bay of Plenty with the world” and our mission is “to grow the visitor with the world” and our mission is “to grow the visitor economy for the benefit of our community”. economy for the benefit of our community”.
• Implementing Te Hā Tāpoi | The Love of Tourism Plan - Our highlights for 2018/19 the three-year ‘Laying the Foundations’ segment of our The organisation shifted into a Destination Management Visitor Economy Strategy 2018-2028. Organisation model and developed a destination • Detailed design for Te Tomokanaga and relocating the development plan. This plan, Te Hā Tāpoi | The Love of Tauranga i-Site. Tourism, tackles the ‘how’ of destination management for the next three years. Transition to destination included • Building a new digital brand, including developing a recruitment of key specialists in areas of destination website with online visitor sales and service capability. and iwi product development, research/insights, and • Continued emphasis on the cultural tourism partnerships. proposition. Another highlight is the establishment of a Memorandum of Commitment with the three Tauranga Moana iwi and in September 2018, TBOP’s ground-breaking shift to destination management was recognised by its peers when it won the inaugural Regional Tourism New Zealand Supreme Award. We are proud of the region’s leadership in this new frontier of destination management for New Zealand.
TBOP and Air New Zealand formed a partnership for in- kind support because of the shared vision for the region. TBOP has the long-term vision to create a visitor economy that is regenerative for the region’s environment, culture, community and economy. This vision will be achieved through strategic alliances and keeping our people and place at the core of our decision-making. A highlight from this partnership for this year has been Air New Zealand’s significant increase in the number of seats into and out of Tauranga.
The visitor spend is on track to meet target, and the growth in international spend is above the national average. COUNCIL CONTROLLED ORGANISATIONS 205
PERFORMANCE MEASURES
2018/19 Target Status Comments
TBOP has met all budget and business plan targets. Total income for the year was under Work within the approved budget however expenses were also under budget with a net result that TBOP made an budget and business plan. overall saving of $9,808. Achieved.
All planning and reporting requirements have been met by TBOP in relation to our key Planning and reporting performance measures and the requirements of Tauranga City Council, Western Bay of requirements are met. Plenty District Council and Whakatāne District Council. Achieved.
TBOP has met, or is on the way to meeting, our set activity performance measures.
Visitor Economy
Visitor spend in the Coastal Bay of Plenty grew 4.9% in the year ending May 2019 to $1,076m. This exceeds the 2018/19 targets of growing total visitor spend by 4% and reaching $1,059m. The Coastal Bay of Plenty visitor economy also grew at a faster rate than the national visitor economy (3.5% growth) over the same period.
TBOP undertakes a number of activities to support growth of the domestic visitor economy in the region. These include campaigns, PR activity and social media. Annual domestic visitor spend in the Coastal Bay of Plenty grew by 3.4% to $843m in the year ending May 2019. This level of growth is marginally below the targeted level of 3.7%, however it is above the national average of 2.8%.
TBOP also undertakes a number of activities to support growth of the international visitor market, including promoting the Bay of Plenty brand internationally via partnership marketing with Tourism New Zealand and eXplore Central North Island. In the year ending Strategic and business plan May 2019, international visitor spend in the Coastal Bay of Plenty grew by 10.8% to reach objectives and performance $233m. This level of growth exceeded the target of 5.3% growth for the year, and was measures are met. considerably stronger than the national growth rate of 4.6%. Achieved. Tauranga residents’ perceptions of tourism
The Net Promoter Score is used to measure the likelihood of Tauranga residents to promote Tauranga as a holiday destination. Scores range from -100 to +100. Tauranga received a Net Promoter Score of +39 for 2018/19, indicating a reasonable level of satisfaction and affinity with Tauranga as a holiday destination. However, this result falls short of the goal of +53.
Tourism Sentiment Index™
The Tourism Sentiment Score is an index ranging from -100 to +100 and measures overall perceptions of the tourism offering in the Coastal Bay of Plenty via scraping online conversations. A very good score of +55 was achieved for the year ending June 2018. This is a new measure and there was no goal set for the 2018/19 financial year. For comparison, the score of +55 is slightly higher than the score achieved by a group of comparative destinations (+53). 206 ANNUAL REPORT 2018/19
FINANCIAL PERFORMANCE
2019 2018 Actual Actual $000's $000's
Revenue 3,063 2,474
Expenditure 3,053 2,501
Net Surplus/(Deficit) for Year 10 (27)
INCOME DERIVED FROM COUNCIL
2019 2018 Actual Actual $000's $000's
Operational Grant 1,628 1,021
Service Delivery Contract 493 461
Other 38 0
Total Council Derived Income 2,159 1,482 COUNCIL CONTROLLED ORGANISATIONS 207 Progress Achieved. Not achieved. Result to June 2019 Total annual visitor spend Total in the Coastal Bay of Plenty was $1,082m for the year ending June 2019, of an increase representing to the year 5.3% compared ending June 2018. These exceed the June results of $1,059m 2019 targets per annum. and 4% growth rate also The growth exceeds the national visitor rate of 3.2% spend growth over the same period. 1.Score of 75% agree of 75% agree 1.Score (2018/19 FY). of 69% agree 2. Score (2018/19 FY). of +39 (2018/19 3. Score FY). NPLH: Activity has continued, focus groups with locals have been conducted. Destination working with us Think! are a new Connect to create with Residents strategy. RAG meetings: As a result of the Passionography work it has been determined that these will be called ‘passion This will working groups’. occur once all Passion Insight sessions have been completed. to June 2021) 2020-2021 (Goal $1,157m Implement Year 3 of VES. 1. Maintain score 1. Maintain score above 85%. 2. Maintain score above 82%. 3. Maintain score above +55**. NPLH review and assess. 3 x RAG meetings. to June 2020) 2019-2020 (Goal $1,108m Implement Year 2 of VES. 1. Maintain score 1. Maintain score above 84%*. 2. Maintain score above 81%*. 3. Maintain score above +54**. 4 NPLH Year implementation. 3 x RAG meetings to June 2019) 2018-2019 (Goal $1,059m Implement Year 1 of VES. 1. Maintain score 1. Maintain score above 82%*. 2. Maintain score above 79%*. 3. Maintain score above +53**. 3 NPLH Year implementation. 3 x RAG meetings. NPS **Target for scores 2019-21 have to been revised more represent targets. realistic Baseline Visitor spend: Visitor $994m (YE Dec 2017). VES 2018-2028 completed. Support completion of of Stage Two Alternative Funding Mechanisms project. 1. Score of 80%* 1. Score (Jan 2018). of 77%* 2. Score (Jan 2018). of +52 3. Score (Jan 2018). *Baseline scores have changed as of December 2018 1 and for measures the % 2, to reflect with the who agree statement. This is accurate a more and will be measure forward. going used Goals to June 2020 have changed accordingly. Data Source MBIE Regional Estimates. Tourism be determined. To TCC Residents Survey: is a 1. Tauranga quality destination for visitors and businesses. 2. The tourism sector has a positive impact on the community. 3. Likelihood to recommend as a Tauranga holiday destination to friends and family. Measure Performance Visitor spend Visitor of 4% per growth annum. Implementation of 1 of VES. Year Support completion of of Stage Two Alternative Funding Mechanisms project. Maintain scores of Maintain scores above 52. No Place Like Home (NPLH) implementation. Set-up of Resident Advisory Group (RAG). Activity VISITOR ECONOMY 2018-2028 (VES) STRATEGY Implement a Destination Management strategy ensuring the balance of with social, cultural growth well- and environmental being. City Support Tauranga Council to complete Stage of Alternative Funding Two Mechanisms Project. CONNECT WITH RESIDENTS and maintain Measure community social licence of with measurement satisfaction and their resident the likelihood to recommend to others visit (Net area Score). Promoter QUALITY OF LIFE alike. amenity for visitors and residents an enhanced visitor experience and increased The visitor economy enhances quality of life, by providing 208 ANNUAL REPORT 2018/19 Progress Achieved. Achieved. Achieved. Result to June 2019 Visitor satisfaction is now Visitor by the Tourism measured (TSI) for Sentiment Score which is +55 Coastal BOP, (YE June 2018). Next result will be available later this year. Sales Commissioned Visitor and Service Review to define the most efficient, and future-proofed effective sales and service model for TBOP. Destination Think! draft Destination Development Plan completed and under implementation. Signed TIA Tourism Sustainability Commitment and hosted a workshop on this in Tauranga. Qualmark training completed. with four fledgling Working Operators in Māori Tourism of starting their the process businesses, with at least one expected to launch in the next six months. Moana MOU with Tauranga iwi achieved. to June 2021) 2020-2021 (Goal Set targets Set targets for Visitor Satisfaction Monitor. fit-for- Provide purpose Visitor Information Services. Implement Destination Development Plan with a sustainability focus. Industry support the TIA Tourism Sustainability Commitment. Host 1 Qualmark workshop for operators. 1 new product development or enhancement of existing product. MOU with Iwi upheld. to June 2020) 2019-2020 (Goal Set targets Set targets for Visitor Satisfaction Monitor. fit-for- Provide purpose Visitor Information Services. Implement Destination Development Plan with a sustainability focus. Industry support the TIA Tourism Sustainability Commitment. Host 1 Qualmark workshop for operators. 1 new product development or enhancement of existing product. MOU with Iwi upheld. to June 2019) 2018-2019 (Goal Implementation of a Visitor Satisfaction Monitor. fit-for- Provide purpose Visitor Information Services. Destination Development Plan with a sustainability focus. Launch TIA Tourism Sustainability Commitment to industry. Host 1 Qualmark workshop for operators. 1 new product development or enhancement of existing product. MOU with Iwi developed. Baseline No current data. No current No current data. No current 62 Qualmark operators (June 2018). Building with relationships Iwi. 1 new product development. Data Source To be determined. To To be determined. To Feedback from Hapū and Iwi. Measure Performance Implementation of a Satisfaction Visitor Monitor. Destination Development Plan with sustainable tourism plan and initiatives. Support implementation of the TIA Tourism Sustainability Commitment. Support Qualmark accreditation Hapū and Iwi relationships developed. Memorandum of Understanding (MOU) with Iwi established. Activity ENHANCE THE VISITOR EXPERIENCE Enhance the visitor experience and visitor satisfaction (as measured Satisfaction by a new Visitor Monitor) and visitors’ the likelihood to recommend to others (Net Promoter area Score). ENHANCE THE VISITOR EXPERIENCE advocacy to Councils Provide and the sector support the tourism industry to be responsible environmentally the sub-region to protect and future for current generations. AND GROW CAPABILITY INCREASE SUPPLY tourism Identify and promote experiences and products Bay that support the Western unique cultural of Plenty’s heritage and history. COUNCIL CONTROLLED ORGANISATIONS 209 Progress Achieved. Achieved. In progress. Result to June 2019 Scoping demand / supply model (delayed due to delivery uncertainty around of data at national level). markets Four target identified by Destination Think!, with passionography to understand research these markets completed at end July. and reported Monthly meetings with TCC Major Events. Budget set 19/20 FY and a strategy being developed, which will help determine which events to support. Domestic visitor spend in the Coastal Bay of Plenty for the year ending June 2019 was $849m. This of 3.9% growth represents to the same compared meeting period last year, rate of growth the target 3.7%. The national growth rate for the same period was 2.3%. International visitor spend in the Coastal Bay of Plenty for the year ending June 2019 was $233m. of growth This represents to the 10.8% compared YE June 2018, double the rate and growth targeted considerably higher than rate of the national growth 4.6%. to June 2021) 2020-2021 (Goal Stage 3 of demand / supply model research implementation. Continued implementation markets of target and niche by propositions December 2018. Support of Major Events Strategy and 5 major events. Increase by Increase 3.7%. Increase by Increase 5.3%. to June 2020) 2019-2020 (Goal Stage 2 of demand / supply model research implementation. Implementation markets of target and niche by propositions December 2018. Support of Major Events Strategy and 5 major events. Increase by Increase 3.7%. Increase by Increase 5.3%. to June 2019) 2018-2019 (Goal Creation of Creation demand / supply model research by December 2018. of Creation markets target and niche by propositions December 2018. Support of Major Events Strategy and 5 major events. Increase by Increase 3.7%. Increase by Increase 5.3%. Baseline No current data. No current $785m (to Dec 2017). $208m (to Dec 2017). Data Source Completion of projects. Support of 5 major events. MBIE Regional Estimates by Domestic. MBIE Regional Estimates by International. Measure Performance Creation of Creation demand/supply model. research of target Creation markets and niche propositions. Support of Major Events Strategy. Increase domestic Increase visitor spend by 3.7%. Increase Increase international visitor spend by 5.3%. Activity TARGET THE RIGHT TARGET THE RIGHT VISITORS AT TIME of a demand and Creation supply model and calendar high value visitors to target at peak season, and both high volume and value seasons. visitors at off-peak markets and Define target for more niche propositions efficient marketing. DOMESTIC VISITOR STRATEGY ATTRACTION to consumer marketing Direct activity in Auckland, Waikato, and Christchurch. Wellington No Place Like Home Campaign to residents. Support strategic events that visitation, off-peak increase GDP and visitor growth. INTERNATIONAL VISITOR INTERNATIONAL STRATEGY ATTRACTION International trade and media activity in Australia and in partnership with Central North Island, eXplore New Zealand and Tourism agencies involved in regional international marketing. QUALITY OF ECONOMY visitor spend in the WBOP sub-region. the tourism industry and increase Grow of living for all. employment opportunities, contributing to a higher standard Attract visitors and new investment create and enable investment. Support the development of tourism in WBOP sub-region 210 ANNUAL REPORT 2018/19 Progress Achieved. Achieved. Achieved. Result to June 2019 Results for the 2018-19 due to be season are in August 2019. released Phase 1 of cruise model is well. progressing Application for funding detailed design approved, to commence next financial year. Exploring new locations for i-Site. Tauranga Destination Think! Destination Development Plan completed. Participated in BOC RGS Implementation Committee and BOC review. to June 2021) 2020-2021 (Goal Increase cruise Increase spend by 3.4%. Implementation of Phase 2 Cruise Model. Commence build of VIC Mount Maunganui. Commence design for VIC Tauranga. Continue Phase 2 implementation. Participate in BOC RGS Implementation Committee. to June 2020) 2019-2020 (Goal Increase cruise Increase spend by 3.4%. Continued implementation of Phase 1 Cruise Model. Detailed design for approved build. site Tauranga business case approved. Commence Phase 1 implementation. Participate in BOC RGS Implementation Committee. to June 2019) 2018-2019 (Goal Increase cruise Increase spend by 3.4%. Continued implementation of Phase 1 Cruise Model. Funding achieved, and site approved. Commence detailed design. Completion of Destination Development Plan by June 2019. Participate in BOC RGS Implementation Committee. Baseline $59m (to June 2017). VIC Mount Maunganui funding approved. Completion of Destination Development Plan by June 2019. Participate in BOC RGS Implementation Committee. Data Source MBIE Tourism MBIE Tourism Satellite Account. Annual Plan funding allocated. of External sources funding pursued. Feedback from residents industry, and stakeholders. Measure Performance Increase cruise Increase spend by 3.4%. Funding for Mount Maunganui VIC. Business Case for VIC. Tauranga Develop co- Destination created Development Plan. Activity CRUISE VISITOR STRATEGY ATTRACTION cruise spend from Increase visitation and improve passenger satisfaction with supply of visitor sales and service at Port of entry. ENHANCE THE VISITOR EXPERIENCE visitor Continue to improve information services with development of a Mount Information Maunganui Visitor and (VIC) presence, Centre development of an alternative VIC location and Tauranga with digital and unmanned services. AND GROW CAPABILITY INCREASE SUPPLY Complete a co-created 10-year Destination Development Plan to grow This the visitor economy. Plan will enable public and private investment decisions and facilitate opportunities for investment, which will the number of new increase tourism experiences. Lobby for funding to support at least one of the priorities set out in the Bay of Connections (BOC) Regional Study (RGS). Growth COUNCIL CONTROLLED ORGANISATIONS 211 Progress Achieved. Result to June 2019 2 new export ready 2 new export ready Hotel operators: Clarence and Aerius Helicopters. 3 IAG meetings held: 5 July, 21 Nov 2018 and 29 May. to June 2021) 2020-2021 (Goal 6 new export operators. ready 2 x meetings of IAG per year. to June 2020) 2019-2020 (Goal 4 new export operators. ready 2 x meetings of IAG per year. to June 2019) 2018-2019 (Goal 2 new export operators. ready 2 x meetings of IAG per year. Baseline No current data. No current Data Source Industry Engagement Survey. Measure Performance Hire product product Hire / experience development resource. Establish Industry Advisory Group (IAG). Activity GROW CAPABILITY AND GROW CAPABILITY INCREASE SUPPLY Assist existing and new potential tourism operators with mentoring and support to develop capability, particularly to become export ready. with the Industry Work (IAG) Advisory Group to identify gaps and with opportunities. Work to advocate Council staff for enablement of tourism opportunities. product 212 ANNUAL REPORT 2018/19 Progress Achieved. Achieved. Achieved. Result to June 2019 Hired research and insights research Hired specialist. (2018- forecasts Tourism 2028) commissioned and to interested delivered parties and used for purposes. reporting Hotel valuation data to interested delivered parties. Successful Annual Plan and Long-term Plan process with councils. Continued application of stakeholder engagement plan. P&L being managed to budget. Code of Conduct compliance. Compliance and regulatory obligations met. Enterprise Risk Management Policy adherence. No surprises policy maintained. to June 2021) 2020-2021 (Goal Implementation 3 of VES. of Year Continued implementation and of research insights projects. Participation in annual planning with councils. Year 4 Year implementation. Review and assess. Manage P&L to budget. of Conduct Code compliance. Compliance and regulatory obligations met. Enterprise Risk Management Policy adherence. No surprises policy maintained. to June 2020) 2019-2020 (Goal Implementation 2 of VES. of Year Continued implementation and of research insights projects. Participation in annual planning with councils. Year 3 Year implementation. Review and assess. Manage P&L to budget. of Conduct Code compliance. Compliance and regulatory obligations met. Enterprise Risk Management Policy adherence. No surprises policy maintained. to June 2019) 2018-2019 (Goal Implementation 1 of VES. of Year Research and insights requirements scoped and commissioned by June 2019. Participation in annual planning with councils. Year 2 Year implementation. Review and assess. Manage P&L to budget. of Conduct Code compliance. Compliance and regulatory obligations met. Enterprise Risk Management Policy adherence. No surprises policy maintained. Baseline VES 2018-2028 completed. Stakeholder Engagement and Communications Plan completed. Annual Report 2016-17. Report Auditor’s 2016-17. Data Source 2018-2019 6 Month and Annual Reports. Council’s feedback Council’s – 6 Month and Annual Reports. Industry Engagement Survey. Report. Auditor’s and TCC’s WBOPDC’s feedback. MBIE Regional Estimates. Tourism Measure Performance Implementation of 1 of VES. Year Stakeholder Engagement and Communication Plan delivery. Manage P&L to budget. Code of Conduct compliance. Compliance and regulatory obligations met. Enterprise Risk Management Policy adherence. No surprises policy maintained. Activity INSIGHTS AND LEADERSHIP leadership for Provide tourism and support sustainable economic growth leadership and with effective implementation of the VES. research TBOP will provide the insights to forecast visitor economy and provide demand management and city of infrastructure services. COLLABORATION AND COLLABORATION PARTNERSHIPS Collaborate and maintain partnerships with other to identify organisations and leverage opportunities. to the principles of Adhere the Stakeholder Engagement and Communications Plan collaborative to ensure with key relationships stakeholders. GOVERNANCE BEST PRACTICE Prudent management of TBOP including risk and and financial control, compliance to regulatory and Code of Conduct frameworks. SOUND CITY FOUNDATIONS Collaborate with councils and other agencies. COUNCIL CONTROLLED ORGANISATIONS 213
Local Government Funding Agency
What we do Challenges for 2018/19 • The Local Government Funding Agency (LGFA) • Maintaining required issuance volumes in uncertain provides funding to participating New Zealand global market. authorities. • Growing asset base but shrinking margins. • This CCO raises debt funding either domestically or offshore. LGFA borrows funds and lends them on to Looking ahead for 2019/20 local authorities at lower interest margins than those local authorities would pay to other lenders. • We are planning to lend to approved CCOs. • Allow reporting and testing of covenants on a Our highlights for 2018/19 consolidated group basis. • Our net operating gain was $326k over budget for the 12-month period at $11.2m (unaudited).
• Total participating councils is now 64 with the following eight councils joining the LGFA over the past year:
- Clutha District Council
- Hawke’s Bay Regional Council
- Invercargill City Council
- Mackenzie District Council
- Ruapehu District Council
- Waikato Regional Council
- Wairoa District Council
- West Coast Regional Council
• Our market share of all loans provided to New Zealand councils increased to approximately 92.3% from 70% (30 June 2018).
• Savings to councils are estimated to be in the range of 7 to 9 basis points, depending on the term of borrowing.
• We increased its outstanding bonds as at 30 June 2019 to $9.335bn (including $400m of treasury stocks). The LGFA issued 237 new term loans to member councils during 2019, representing $2.446b in new loans. 214 ANNUAL REPORT 2018/19
PERFORMANCE MEASURES
2018/19 Target Status Comments / Result for 12-month period to 30 June 2019
The average margin above LGFA’s cost of funds charged at the highest rated participating 0.101% (0.10% for long-term and 0.106% for short-term). local authorities for the period Due to increase in short-term lending where the margin includes LGFA cost of borrowing. to 30 June 2019 will be no more Not achieved. than 0.10%.
Total lending to Participating Local Authorities at 30 June $9,262 million 2019 will be at least $8,105 million. Achieved.
LGFA will demonstrate the savings to council borrowers on a relative basis to other sources of financing. 2019 maturity n/a Improvement since prior year-end relative to borrowing 2021 maturity 9 basis points councils directly. 2025 maturity 7 basis points Council borrowing spreads as at June 2018: Not achieved. Due to a lack of single name issuance by councils and record issuance of LGFA bonds, these factors have created a supply-demand imbalance and reduced savings to councils. 2019 maturity 11 basis points
2021 maturity 19 basis points
2025 maturity 10 basis points
LGFA’s annual issuance and operating expenses (excluding $5.85 million. AIL) for the period to 30 June Due to additional NZX listing and legal fees associated with larger than forecast bond 2019 will be less than $5.67 issuance and council lending. million. Not achieved.
FINANCIAL PERFORMANCE
2019 2018 Actual Actual $000's $000's
Revenue 361,080 342,828
Expenditure 349,880 331,026
Net Surplus/(Deficit) for Year 11,200 11,802 COUNCIL CONTROLLED ORGANISATIONS 215
Bay of Plenty Local Authority Shared Services
What we do Challenges for 2018/19 • The Bay of Plenty Local Authority Shared Services BOPLASS has taken a lead with coordinating cross- (BOPLASS) was established by the nine local regional activities, often engaging with other LASS or authorities in the Bay of Plenty / Gisborne region to councils outside of the region for specific projects. This foster collaboration between councils in the delivery of has provided benefits and incremental savings for all services, particularly back-office or support services. participating councils but has also meant that some projects are slower to progress with a larger group of • BOPLASS investigates, develops and delivers shared councils participating. services and joint procurement on behalf of the participating councils, maximising cost savings and BOPLASS is a small organisation and is reliant on drawing developing opportunities for sharing of services. resourcing from within our constituent councils. This dependency will always dictate the number of concurrent • The shareholding councils are: Bay of Plenty Regional projects that can be undertaken. Council, Gisborne District Council, Kawerau District Council, Ōpotiki District Council, Rotorua District Council, Taupō District Council, Tauranga City Council, Looking ahead for 2019/20 Western Bay of Plenty District Council and Whakatāne A project is underway to review opportunities for District Council. collaboration in capex programmes across the region to attract more interest from the contractor market. Our highlights for 2018/19 Coordination or sequencing of capex tenders/projects across councils provides an opportunity to collectively We have continued to provide significant benefit to our market the region to potential contractors. shareholders through collaboration with over $1.39m savings delivered to our constituent councils through Solid waste projects have been on hold while awaiting a number of joint procurement initiatives undertaken in commitment from Waikato councils to participate in these 2018/19. projects. Commitment has now been received and projects for: Licensing of Waste Contractors, Diversion of Organic A successful application to the Provincial Growth Fund on Waste from Landfill, and a Regional Infrastructure Strategy behalf of the Bay of Plenty councils has resulted in up to will be undertaken in 2019/20. 50% co-funding being available for capture of councils’ 3D imagery mapping.
The MahiTahi Local Government Collaboration Portal was redesigned in 2018/19 to further integrate with councils’ systems and now provides an effective conduit for information sharing within local government. The increased visibility of information and projects across multiple councils has led to further opportunities to learn from others and for councils to partner in projects. 216 ANNUAL REPORT 2018/19
PERFORMANCE MEASURES
2018/19 Target Status Comments / Result for 12-month period to 30 June 2019
The new procurement initiatives which have been investigated during the year are as follows:
Infrastructure Insurance – BOPLASS represented a collective group of councils in negotiations for placement of councils’ infrastructure insurance into the London markets. Although faced with a hardening insurance market BOPLASS councils’ were able to achieve particularly good outcomes as a result of our existing underwriter relationships and an established history within the London insurance markets. This was supported by accurate loss modelling information, asset valuations, and risk quantification data, all of which have become essential information in securing appropriate and competitively priced insurance. A new contract was established with a mix of Lloyds’ syndicates.
Eagle Training – Eagle Technology was engaged by BOPLASS to provide collaborative training on migrating ArcMap to ArcGIS Pro for BOPLASS councils GIS staff. This collective approach provided significant cost savings and improved inter-council information sharing.
Aerial Imagery and LiDAR* 2018/19 – The tender for BOPLASS councils’ specific areas and requirements within the BOPLASS regional flying calendar were awarded to AAM NZ Ltd. An additional financial saving of approximately $100,000 was achieved (beyond the benefits of a collective tender) through a unique flying and capture process being utilised.
*LiDAR (Light Detection and Ranging) data, or height data, is precise laser measurement of the Earth’s surface that is used for creating highly accurate 3D maps of the land. LiDAR is particularly useful for flood modelling purposes because it provides accurate terrain and surface models of the land. LiDAR allows us to better understand where water will flow, what protection may be needed and where the areas at greatest risk from flooding are. Investigate new Joint Procurement initiatives for Provincial Growth Fund Application for LiDAR Capture – BOPLASS successfully goods and services for managed a coordinated regional approach to a Provincial Growth Fund application BOPLASS councils. for co-funding for LiDAR capture for the entire Bay of Plenty region. Co-funding was made available to assist councils to invest in an expansion of 3D mapping to assist with Procure from sources offering supporting major development projects and improve land use management in our region. best value, service, continuity The successful application for co-funding will result in significant savings for BOPLASS of supply and/or continued councils’ LiDAR and 3D mapping programmes. opportunities for integration. Antenno – Is a local government communications app that allows councils to push A minimum of four new Achieved. notifications to their communities. It also provides facilities for people to lodge service procurement initiatives requests with their council directly through the app. BOPLASS negotiated a discount rate investigated. Initiatives provide with Datacom for all BOPLASS councils. financial savings of greater than 5% and/or improved service Lone Worker Field Solutions – The BOPLASS Health and Safety group have engaged with levels to the participating vendors to review communication and technology solutions to assist with protecting and councils. connecting with lone or remote workers. Still under action. Robotic Process Automation – RPA provides an opportunity for the automation of repeatable processes that can run without intervention. BOPLASS has facilitated workshops with vendors and also with Auckland Council as they have developed a mature process for developing solutions based upon various business units’ requirements. This project is ongoing.
Accounts Payable Automation Software - BOPLASS led a project to identify collaborative opportunities for the automation of accounts payable processes through niche software or collective development of a shared solution. Negotiations are underway with a shortlisted provider. Still under action.
PMCA NZME Premium Content - BOPLASS holds a collective PMCA licence on behalf of our constituent councils. BOPLASS identified that our licenced organisations cannot legally access premium media content without holding a corporate paywall premium subscription. BOPLASS investigated a project to establish a single corporate licence on behalf of our councils. It was determined that the service was not required by all councils and individual agreements would be pursued.
Insurance Valuations – International underwriters for BOPLASS councils’ insurances had requested we demonstrate a common standard of asset reporting aligned to a consistent standard for valuations reporting. Having this consistent data would assist them in better understanding the risk they are writing and, ultimately, would be reflected in their pricing. BOPLASS negotiated an agreement with Aon to review councils’ valuation processes and establish consistent standards for valuation of assets. Discounted pricing and savings for all councils was achieved through a collective agreement. COUNCIL CONTROLLED ORGANISATIONS 217
PERFORMANCE MEASURES
2018/19 Target Status Comments / Result for 12-month period to 30 June 2019
Contractor online inductions – The BOPLASS Health and Safety advisory group have investigated and shortlisted suppliers to deliver a collective solution for online inductions of contractors for all BOPLASS councils. Still under action.
Eastern BOP Electricity Tender – At the request of Eastern Bay councils BOPLASS explored options for other BOPLASS councils to participate in a collective tender. After investigating with other councils it was determined that it was more beneficial for Eastern Bay councils to proceed with a separate tender.
Health and Safety Management Software – A BOPLASS preferred supplier agreement has been established with Vault with preferential pricing applied to all participating Waikato and BOPLASS councils. The agreement provided significant savings for all councils and migration to the latest Vault version at no cost to participating councils.
0.45 full-time equivalent provided through BOPLASS staff engagement committed directly to support of council shared service projects or individual council support – measured by fortnightly timesheets.
Support provided to councils in development of the following services:
Radio Telephony (RT) strategy – Push Wireless have been appointed as preferred supplier to coordinate region-wide Radio Telephone services and technologies. Standardisation of services and networks also provides the potential for further alignment in civil defence strategies.
Bulk loading As Built Data questionnaire – Investigated aligning BOPLASS councils to common As Built data standards. Survey circulated to all GIS teams to benchmark current standards. Still under action.
Solid Waste Management – Scoping for two of the three solid waste services that are being coordinated by BOPLASS has been completed, with significant opportunities for cross-regional collaboration identified:
• A regional or cross-regional approach to licensing and data collection for waste operators
• Diverting putrescible wastes from landfill Provide support to BOPLASS councils that are managing or The Regional Facilities Strategy project is awaiting commitment from Waikato councils investigating Shared Services before completing the initial scoping. projects. Insurance Forum – BOPLASS hosted an insurance forum covering Waikato and BOP BOPLASS to provide 0.25 FTE councils. BOPLASS arranged sponsorship and the forum was provided at no cost to resource and expertise to assist the councils. Qualified speakers covered a number of critical insurance and risk topics. councils in Shared Services Councils benefitted from access to this important information through this forum. developments and projects. Achieved. Health and Safety Inter-Council Audits – A framework has been developed to enable Quarterly satisfaction reviews BOPLASS councils to request a peer review from other councils in the BOPLASS group with participating councils. with the objective of sharing knowledge and improving areas within Health and Safety. Resource assignment measured from project job tracking. Asbestos protocol – Researched and shared best practice and protocols across councils and within BOPLASS Health and Safety Advisory group. Organised WorkSafe presentation. Ongoing sharing of information between councils.
Sustainable Public Procurement – BOPLASS supported Toi-Ohomai Institute of Technology in a research report on Sustainable Public Procurement in the Bay of Plenty. BOPLASS has worked with CoBOP and The Sustainable Business Network to progress the opportunities identified in the report. BOPLASS councils’ procurement managers have undertaken a project to collaborate in the development of sustainability procurement practices and policies.
Health and Safety Benchmarking – The BOPLASS and Waikato LASS Health and Safety groups have established measures and systems for implementing a shared local authority health and safety benchmarking system.
Support of Video Conferencing services for councils – Ongoing support for councils’ in-house and external video conferencing services. Central management of virtual meeting rooms and directories. Investigation of updated services. Added Zoom services to councils’ video conferencing services.
Ōpotiki District Council Library and cloud services – BOPLASS IT Manager assisted in reconfiguration of network and led project to investigate options to move Ōpotiki District Council into the Cloud. 218 ANNUAL REPORT 2018/19
PERFORMANCE MEASURES
2018/19 Target Status Comments / Result for 12-month period to 30 June 2019
Inter-Council Network (ICN) review, redesign and renegotiation of suppliers and services – The ICN is a shared service high capacity fibre network connecting the majority of BOPLASS councils. ICN design was reviewed and an evaluation of ICN contracts undertaken to deliver further cost reductions.
Debt Collections – After investigating options for establishing a local shared service, BOPLASS engaged with Manawatu-Wanganui LASS (MWLASS) to develop an opportunity for BOPLASS councils to participate in the MWLASS debt management service – Debt Management Central (DMC) – as a shared service. An inter-LASS agreement has been agreed, with BOPLASS councils entering into individual contracts with DMC.
Capital Construction and Civil Works Projects – A regional-wide marketing approach to civil projects is being reviewed. The focus of this approach is to market the project plans of the region as a whole to the construction sector and to help avoid the complex issue of regional versus local prioritisation for delivery of projects. The anticipated benefit of this approach is to attract a better response from contractors for councils across the region. Ongoing.
Inter-LASS collaboration – BOPLASS continues to encourage collaboration between all LASS and has established quarterly meetings for LASS leaders to share information and identify opportunities for collective partnering.
Collaborative Training – Cross-council training has continued to be arranged across a number of areas of council business, providing for discounted rates, reduced staff travel (as trainers are prepared to travel to region for a larger group), opportunity to network with peers from other councils, and development of tailored material.
BOPLASS Reviews – Undertaken during all advisory group meetings – at least quarterly.
Further develop and extend the Collaboration Portal for access to, and sharing of, project information and opportunities from other councils and the Project completed relaunching the Collaboration Portal with a more user friendly platform greater Local Government under Microsoft Teams to enable and encourage a higher level of sharing from councils and community to increase breadth the Local Government community. User survey feedback implemented along with a review of BOPLASS collaboration. of best practice methodologies.
Increase usage of the Ongoing promotion and profiling of the Collaboration Portal has resulted in more than ten Collaboration Portal by additional councils or Local Government related organisations outside of the LASS group providing support and training signing up to and using the Collaboration Portal, there are 24 councils or local government material for new and existing related organisations outside of the LASS group registered on the Portal. users. On-boarding, training material and training provided to councils to maximise usage and Proactively market the benefits ensure increased uptake. Demonstrations of the Portal given to BOPLASS Advisory Groups to councils. Achieved. and to councils’ executive leadership teams.
Number of listed projects to Number of projects has increased by 11 over the last year, there are now 39 lodged increase by 20% per year. projects. Number of Team Sites to increase by 20% per year. The number of Collaboration Portal Team Sites have increased by 32 over the last year with 58 team sites now registered. Portal is operational outside of the LASS groups with a minimum of ten additional councils or local government related organisations having utilised the portal. COUNCIL CONTROLLED ORGANISATIONS 219
PERFORMANCE MEASURES
2018/19 Target Status Comments / Result for 12-month period to 30 June 2019
Contracts negotiated and/or renewed for:
Video Conferencing Services – New video conference services have been established using Canon and Zoom to deliver desktop and meeting room services to participating councils.
GIS software and services –
• Geocortex Essentials
• Geocortex Optimizer
Ensure appointed vendors • X-Tools remain competitive and continued best value is returned • NZ Archaeological Association to shareholders. Contracts renegotiated and renewed – no alternative suppliers. Manage and/or renegotiate Print Media Copyright Agency (PMCA) – Contract and requirements reviewed. Contract existing contracts. renewed with PMCA – sole NZ provider. Contracts due for renewal are ESRI Enterprise Licensing Agreement – BOPLASS Enterprise Agreement renegotiated tested for competitiveness in Achieved. and renewed for a further three year term with no increases in cost to councils. No the marketplace. New suppliers alternative provider in NZ. are awarded contracts through a competitive procurement Media Monitoring services – Competitive procurement process managed by BOPLASS process involving two or more with presentations received from two vendors. Contract with iSentia renewed. vendors where applicable. Inter-Council Network – Existing contracts renegotiated with some of the ICN suppliers, resulting in improved levels of service and $56,048 annual savings in 2018/19 for this foundation service:
• Spark Fortigate Firewall Services – renegotiated contract resulting in reduced ongoing costs for this service saving $12,611 per year.
• Spark GWS Service in Ōpotiki replaced with Evolution Networks Wireless WAN. Planning work begun in 2018 and completed in early 2019 year. Further improvements to the wireless service undertaken in February 2019. The decommissioning of the Spark service will result in a saving of $20,000 per year.
Review governance performance and structure to Following direct engagement with shareholders and feedback received a decision was ensure it supports BOPLASS’ made not to proceed with an independent governance review. The majority of councils strategic direction. advised they were comfortable with the current Board composition and the cost of carrying Perform review of BOPLASS out an independent governance review would be prohibitive relative to the return in value. governance. Discussions around strategy and governance are held on a continuous basis by the Board. Achieved. Affirmative feedback received Feedback from councils is received through the Statement of Intent submission process. from shareholding councils at least annually.
Communicate with each BOPLASS continues to regularly engage with our constituent councils, senior management shareholding council at and shareholders to ensure opportunities continue to be developed to the benefit of all appropriate levels. stakeholders.
Meeting with each Executive Meetings were held with each council’s Executive Leadership Team. Leadership Team. Achieved. A further four Operations Committee meetings were held during the year with Executive At least one meeting per year. Leadership Team representation and input provided by all shareholding councils.
The sources of BOPLASS funding and the viability of the funding model are regularly Ensure current funding model is reviewed with financial reporting provided to the BOPLASS Board. appropriate. Council contributions levied. Review BOPLASS expenditure and income and review council Contributions received from activities producing savings. contributions and other sources Vendor rebates collected. of funding. Achieved. Monthly and quarterly performance reviewed. Performance against budgets reviewed quarterly. Company Financial statements reported and reviewed at Board meetings. remains financially viable. Financial position year end 30 June 2019: $5,322 profit. 220 ANNUAL REPORT 2018/19
FINANCIAL PERFORMANCE
2019 2018 Actual Actual $000's $000's
Revenue 1,359 1,445
Expenditure 1,354 1,456
Net Surplus/(Deficit) for Year 5 (11)
INCOME DERIVED FROM COUNCIL
2019 2018 Actual Actual $000's $000's
Operational Contribution 50 50
Total Council Derived Income 50 50 COUNCIL CONTROLLED ORGANISATIONS 221
Tauranga Art Gallery Trust
is still currently on tour, showing in two venues in 2018 and What we do two more art museums scheduled for 2019/2020 financial • The Tauranga Art Gallery Trust (TAGT) was established year. in 2005 to manage and operate the Tauranga Art Gallery (TAG), ensuring a sound and innovative ARTBUS FUNDRAISER business. Our education programme continues to be popular with • TAGT aims to create exceptional art experiences 9,767 students from 54 different schools attending this that engage, inspire, challenge and educate through financial year. We held a very successful Art for Kids exhibitions, public programmes and events. fundraiser in September, which was attended by 205 guests and raised $20,000 to go towards the ArtBus which transports the school students to the gallery. This was a Our highlights for 2018/19 collaboration with several local fashion houses and Toi Ohomai 3rd year fashion students. MEGA WORLD Our signature event for the 2018/19 financial year was Challenges for 2018/19 Mega World which started with Anti-heroes on 23 February and ran until 7 July. A highlight was a NZ-first exhibition FUNDING by the Emmy and BAFTA award winning LA-based artist Gary Baseman curated by new Director Alice Hutchison. Sourcing external funds to meet the rising cost of The opening, with Baseman’s workshops and events were exhibitions in particular, is our biggest challenge. The well-attended and his large social media following of over ability of the community to contribute further in the way 170,000 brought Tauranga into the international spotlight. of donations and/or sponsorship is limited and there are We also hosted Dash Shaw and Jane Samborski from the more organisations seeking donations and sponsorship US, and in partnership with the US Embassy, organised support. Notwithstanding those pressures and because national speaking tours and screenings at universities and of the quality of the TAG programme; against a TAG goal galleries in Tauranga, Hamilton and Wellington under the of raising 20% of revenue from external sources, TAG auspices of TAG. Mega World drew major national and succeeded in raising 33% of its operating revenue from international media attention, including coverage on TVNZ such sources. News and NZ Herald Viva magazine; reaching over 220,000 The operational challenges of maintaining an acclaimed national readers. During the Mega World exhibition, we had high-level exhibition programme even on restricted 23,342 visitors through the gallery. funding has enabled the TAG to become the primary regional destination for arts, culture and creativity in the THE ROOMS Bay of Plenty. The TAG is now perceived as an attractive The Rooms exhibition was a very successful collaboration and exciting destination for local school children and an between The Elms Te Papa Tauranga and TAG. It brought attractor to a high proportion of NZ out of region and to life the history of this significant site and family home overseas visitors. through seven insightful artist projects. The exhibition was held from 4 August – 24th October 2018, and 2,318 visited BARRIERS TO ENTRY AND GROWTH IN VISITOR during this time. NUMBERS The difficult street access for both vehicles and TOURING EXHIBITIONS pedestrians in the city centre because of construction, Award-winning and highly respected 92-year-old weaver, congested traffic, shortage of parking options, lack of Matakino Lawless QMS, exhibited for the first time in a reliable public transport, congregation around public bus public gallery at Tauranga Art Gallery in late 2018. Titled, shelters at peak times, all contribute to a very challenging Whatu Manawa, the popular exhibition has now gone environment. As pedestrians passing by the gallery are on tour. It is currently at Te Awamutu Museum, exhibited identified as the most significant visitors (at 41%), this is a alongside the Tainui taonga Uenuku, and is expected to significant barrier to entry impacting visitor numbers. visit six venues before it concludes in 2021. The 80’s show 222 ANNUAL REPORT 2018/19
BUILDING WHO AM I? EPISODE 001 – KELCY TARATOA
Ongoing maintenance and overheads continue to increase This exhibition is a mid-career survey of work by leading as the building ages, which puts a strain on already limited contemporary artist Kelcy Taratoa (Ngāi Te Rangi and Ngāti funding and building capacity options. The increasing Raukawa). Taratoa’s work reflects upon cultural identity demand from schools, who want to bring students to in twenty first century Aotearoa New Zealand and tackles experience high quality exhibitions and see work by important themes, including links between history, media, NZ and international artists is difficult to meet. Indeed, social conditioning and identity construction, surveillance accommodating the increasing regional population in and privacy, nuclear and environmental threat. experiencing great art and cultural programmes, is severely Taratoa will be creating a new site-specific work for the restricted because of the gallery’s limited capacity and TAG atrium; exploring the cultural significance of Tukutuku increasing demand i.e. from schools, and ability to attract panels on the 7-metre high walls. Kelcy Taratoa lives in more visitors to the gallery and into the city centre. Mount Maunganui and teaches at Toi Ohomai Institute of Technology. He has been represented in several public Looking ahead for 2019/20 gallery exhibitions and his works are included in public and private collections in New Zealand and abroad. IMPROVE FINANCIAL RESISTANCE We have reviewed operational capabilities and work Year-end figures processes and initiated new measures to help build better fiscal disciplines. More work is to follow during the coming VISITORS months. The Board is also continuing to investigate • Visitor numbers reached 64,644 excluding off site alternative funding options, as previously outlined to venues including: Councillors. Uncertainty about council’s own plans and timing to improve the civic centre beside and opposite the - 23,342 visitors visited during our signature gallery, frustrates Board options. exhibition Mega World
- 2,318 visitors visited our collaborative exhibition NEW ZEALAND – FIRST EXHIBITIONS with The Elms at The Elms Terminus by Tauranga-born, New York based leading • 50% of our visitors who completed our visitor surveys contemporary artist Jess Johnson and her collaborator were from Tauranga, which is consistent with the Simon Ward is a world-first in Virtual Reality. It is being previous year reconfigured for Tauranga Art Gallery, its first NZ venue, from the National Gallery of Australia. Terminus runs from • 46% of our visitors who completed our visitor surveys 20 July to 27 October, 2019. were under the age of 25 years
Mr G: Home - an exhibition in partnership with TCC and • 81% of our visitors were either highly satisfied or the gallery, opens early November. The internationally extremely satisfied with their art gallery experience recognised, Pāpāmoa-based artist, is holding his first • Offsite visitation reached 7,611 from 3 venues, public gallery exhibition at Tauranga Art Gallery. The Tauranga, Gisborne and Auckland exhibition will explore the theme of haukāinga (home), his connection to this region, in particular Matakana and Motiti EDUCATION Islands. 9,767 students attended art classes in our education These two world-class exhibitions will be much admired studio as part of the LEOTC programme, visiting from 54 by our regional community and will also attract visitors to different schools from Tauranga and the Western BOP. Tauranga and into the city centre. Those students were accompanied by 1,927 teachers and supporters. In addition to school students we had: WIDER COMMUNITY ENGAGEMENT – SPECIFIC NEW PROJECTS • 10 Early Childhood Education groups visiting (84 children and 26 teachers/supporters) An exhibition in collaboration with local iwi and the Tauranga Heritage collection is scheduled to open early • 3 Tertiary groups visiting October and run through to 2020 to coincide with the • 5 x weekend / evening adult workshops national commemorations for Tuia 250 – encounters, featuring leading local contemporary artists in dialogue • 4 x weekend children’s workshops with taonga and historic objects. • 1 adult drop-in session
• 1 children/family drop-in session
• 1 Family Fun Day COUNCIL CONTROLLED ORGANISATIONS 223
PERFORMANCE MEASURES
Objective Strategies Performance Target Status 2018/19 Results
Gallery opened daily Provide daily access except Christmas Achieved, the Gallery was open every day except to the Gallery to Day, Boxing Day, New Christmas Day, Boxing Day, New Years Day & Anzac encourage visitations Year’s Day and Anzac Day. Day Achieved.
Increase or maintain Total visitation is not the number of visitors less than 60,000 in Total visitation was 65,264. taking part in TAG art 2018/19 experiences Achieved.
Develop TAG annual plans & programmes for Provide new Quality of Life: experiences both - Exhibitions We had 3 exhibitions tour nationally (Whenua Hou, 80’s Provide the within and outside Programme show & Whatu Manawa) that went to 3 venues, Object opportunity for all the Gallery in order to Space, Tairawhiti Museum & Te Awamutu. TAG also to access, learn engage with additional - Learning and opened The Rooms in collaboration with The Elms. Achieved. and experience audiences Engagement visual art Programme - Marketing Plan
Support Tauranga and Achieve TAG outreach As part of our outreach programme we held an WBOP district Art & and visual art initiatives exhibition “The Rooms” at The Elms with a total Culture Strategy 2018- as described in the visitation of 2,318. 2020 strategy document Achieved.
Deliver programmes Maintain or increase that attract not less We had 9,767 students through as part of the MOE the number of than 7,500 participants LOETC contract. Another 1,489 visitors attended other participants annually (subject to education programmes such as: Family Fun Days, in educational Ministry of Education Drop-in sessions, School Holiday Programme, TAG Art experiences LOETC or other Achieved. Studios (this does not include public programmes). funding being secured)
The free Art Bus Provide an Art Bus free offered to school The Art Bus was offered free of charge to 47 different of charge to deliver groups and funding schools this financial year. school students to and raised to meet the from the Gallery $24,917 was received in funding from WBOPDC. demand Achieved.
TAG engaged with tangata whenua, local iwi & hapū through Fiona Pardington, Whatu Manawa & Matariki Exhibitions. TAG engaged with community groups such as schools and retirement homes with workshops to assist Emma Prill in creating parts of her work which were then included in the “Colourfield” exhibition. Achieve TAG objectives The workshops were at TAG and off site locations. as outlined in the TAG TAG & The Elms collaborated to create The Rooms Support TCC Draft Strategic Plan 2016- exhibition held at The Elms. Beyond Geyserland was Community Wellbeing 2019 that align with also a collaboration with Rotorua Museum. We have Strategic Plan 2018- TCC draft community exhibited international artists from several countries 2021 wellbeing strategic Achieved. including Canada, US, Australia & China as well as plan 2018-2021 national artists from Auckland, Hamilton, Wellington, Whanganui, Rotorua, Hawkes Bay and Tauranga. We were part of the national 125 Suffrage celebration with the Say it Just Say it exhibition. Our diverse range of exhibitions this financial year has included photography, sculpture, painting, video installation, film, comics, street art, weaving and fashion. 224 ANNUAL REPORT 2018/19
PERFORMANCE MEASURES
Objective Strategies Performance Target Status 2018/19 Results
Education Programmes continue to incorporate Te Reo as part of standard teaching practice.
Hosted three leading Māori artists for extensive Provide art experiences Develop appropriate Matariki exhibition programme: Lewis Tamihana that plans Gardiner pounamu carving survey; Blood Water Earth Quality of Life: international collaboration with Maori artist Louise Be a hub for promote mana whenua for the Exhibitions Potiki Bryant + First Nations Santee Smith (Canada) multicultural and and the video-ceramics, partnership with Te Uru + Auckland Arts Festival, Tauranga photographer Kapua Joy experiences and Tauranga’s distinctive Learning and Bennett survey in partnership with TCC Libraries, with audiences culture Engagement Achieved. extensive education programmes and workshops; and heritage programmes weaving, carving uku (clay) well-attended, sold out programmes. Hosted first morning mihi whakatau well attended by Iwi, hapu and whanau of artists with community leaders. Welcomed new Iwi Board member Sylvia Willison.
We delivered 20 exhibitions that coverd a broad range of genres, subjects and media with 10 international Deliver not less than 15 artists. exhibitions and other Offer a wide range of Our exhbitions included highlight of Mega World art experiences that exhibitions and art featuring internationally celebrated Gary Baseman; cover contemporary experiences in order to Sun Xun, NZ artists Natasha Cousens, Ahsin Ahsin, and historical content engage with a diverse Antiheroes: Ryan Heshka (CA), Dash Shaw (US), and which feature a audience Achieved. Tommi Parrish (AU) Ron Rege Jr (USA) Dylan Horrocks, range of multicultural Mardo El- Noor, Tom Scott. Well attended programmes perspectives included Zinefest and extensive gallery talks with Gary Baseman who led education workshops, postersigning.
Achieve outcomes Increase community TAG achieved all outcomes as described in the described in the engagement with Exhibitions and Education Programmes. Exhibitions Programme groups not normally and the Learning A number of groups were engaged with including kura engaged with the and Engagement kaupapa, young professionals, Korean community and Gallery Achieved. Programme ESOL groups, and early childhood providers.
Present at least Stage signature events, one signature event attracting visitors to annually, with that Mega World was our signature exhibition 23 Feb – 07 the gallery and the city event attracting not Jul which had a total visitation of 23,692. centre less than 15,000 Achieved. visitors Quality of Economy: Ensuring TAG Undertake effective Develop TAG marketing All outcomes achieved as outlined in the Marketing is seen as a marketing and plan for each art Plan, with additional national editorial coverage for Qtr destination for promotion of the experience 4 2018 & Qtr 1 2019 exhibitions. both visitors and gallery Achieved. residents
At least an 80% ‘highly Achieve a high level of Achieved 81% of Extremely or Highly satisfied visitor satisfied’/positive customer satisfaction response out of a total of 6,204 surveys completed. visitor response rating Achieved. COUNCIL CONTROLLED ORGANISATIONS 225
PERFORMANCE MEASURES
Objective Strategies Performance Target Status 2018/19 Results
We partnered with The Elms Te Papa with exhibition “The Rooms” and partnered with 2 national galleries with our touring shows “The 80’s show” Collaborate with Partner with other & “Whenu Hou” with visitation of 2,318, 3,837 & other organisations to organisations to 1,456 respectively. Partnership with TCC Libraries create and promote develop and present (Mātiro); Tauranga Zinefest; Te Uru/Auckland Arts art opportunities in exhibitions and events Festival (BWE), Terminus, National Gallery of Australia Tauranga per calendar year Achieved. (Canberra), Ivan Anthony Gallery, Auckland; Te Tuhi (Rydal Art Prize, Seeds Trust); Toi Ohomai; Victoria University (Baseman).
Quality of The social media strategy for Facebook was to Economy: engage with behind the scenes experiences, staff Investigate introductions and sharing art experiences & events innovative and beyond the Gallery walls. This has resulted in a 15% alternative ways increase in followers, a 50.8% in impressions (1,194.6 to provide art average daily users reached) and an 84.3% increase in experiences to engagement. the city Increase use of digital platforms to provide Developed as part of The social media strategy for Instagram was to create new art experiences TAG annual Marketing an online Gallery of current, past and future works, and enhance audience Plan resulting in a 34% increase in followers YOY and a development Achieved. 98.5% increase in engagement YOY. Posting once a day has increased impressions by 263.6% and profile clicks by 98.5% YOY.
The Gallery website continues to perform well, with YOY improvements: 3% increase in page impressions, 1.2% increase in sessions and a 0.67% increase in new users.
TAG staff gave talks and workshops with numerous community groups including Toi Ohomai students and staff, and a professional development workshop Explore opportunities for teachers. A variety of community-based artist to engage with the Develop TAG workshops and presentations were also offered community and offer annual Learning throughout the year. Mega World international visiting new art experiences and Engagement artists Gary Baseman, Dash Shaw + animator Jane outside the Gallery Programme plan Samborski conducted national speaking / screening Achieved. building tours at Hamilton Film Society, universities including Victoria University, Wellington. Extensive Matariki workshops developed: weaving, Uku (clay), carving with exhibitionrelated programmes. 226 ANNUAL REPORT 2018/19
PERFORMANCE MEASURES
Objective Strategies Performance Target Status 2018/19 Results
Seek financial support from benefactors, Develop and TAG achieved non-TCC funding of $599,230 during the sponsors, build implement TAG funding reporting period. Grants were received from Craigs IP, partnerships and strategy Carrus, TECT, One Foundation, CLM etc. secure grants Achieved.
At least 20% of TAG generated 35% of income from other sources. TAGT revenue will be Achieve a diversity of TAG has implemented a tapn-go system, which was provided from sources revenue generation initially introduced as a charge for international visitors other than Council but has encourage a quick easy way for general funds Achieved. visitors to donate.
Sound City Budget was not achieved due to Foundation payments and non-budgeted exhibition expenses from previous Foundations: Gross revenue year (i.e. international freight for Mega World was not TAGT will pursue target achieved and budgeted). While new budget forecasting measures opportunities to forecasted expenditure Budget is met and longer term planning have been implemented secure funding is contained within the Not recently, exhibition expenses continue to be significant. and manage approved budget all funds with achieved. Marketing has also been recently reduced to contain prudence and care within budget.
Compliance with TAGT Audit Committee Policy, Audit NZ Financial statements complied with the required requirements and reporting standards. approved general Achieved. Manage all funds with accounting practices prudence and care
Compliance with TCC All reporting & meeting deadlines as per TCC CCO CCO obligations obligations were met Achieved.
In order to address deficit, New Director with Board The Director will TAG will investigate have introduced visitor charge; reduced exhibition provide information to ongoing opportunities turn-over (extending shows), implemented more the Board and work to future proof the robust itemised exhibition budget forecasting, reduced with the Board to agree Gallery for current and marketing budget, and delayed recruitment in HR. on strategies for future future generations Achieved. proofing New sustainable measures continue to be implemented etc LED lighting.
The Board will determine the most New measures have recently been adapted as appropriate actions above to address deficits, while meeting increasing and cost effective demands of the public (ie schools) is focus of Board options to meet future futureproofing. Achieved. proof strategies
Scheduled maintenance was undertaken as per Complete asset Asset management Building WOF and other works being carried out as management plan work plan is implemented required. Achieved. Sound City Foundations: Run the Gallery Develop opportunities Energy efficiency and During the 2018/19 financial year stage 1 of the in a sustainable for energy efficiency waste reduction plans lighting upgrade was completed with the house lights manner, protecting and waste reduction are implemented upgraded and BOH downstairs & education the Gallery and its collections for Achieved. current and future Maintain good working generations. relationships with Regular meetings Regular meetings were held with the CCO TCC staff and elected with TCC & elected representative and with the Governance to Governance members, observing members as mutually working groups. the ‘no surprises’ agreed Achieved. principle COUNCIL CONTROLLED ORGANISATIONS 227
PERFORMANCE MEASURES
Objective Strategies Performance Target Status 2018/19 Results
Health & Safety Health & Safety Policy Policies and and operational Procedures are up to procedures meet H&S policy was updated & approved at June 2018. Health and Safety: date, documented and statutory requirements TAGT will take all reported to the Board and best practice Achieved. practical steps on a monthly basis. standards of reporting to ensure Health & Safety policies Monthly Health & & procedures Safety staff meetings are adopted as are held to identify per statutory risks or concerns, H&S meetings were held monthly, and minutes requirements. minute’s record recorded. required actions and Achieved. details are promptly conveyed to all staff
The TAGT Board At TAGT Board receives regular and meetings, the Director detailed information will provide detailed about the status of information about TAG H&S incidents, risks were included as part of the TAG Health and Safety Health and Safety Directors report at each board meeting. performance and / performance as per Achieved. or issues and risk the metrics and format mitigation plans. required by the Board 228 ANNUAL REPORT 2018/19
FINANCIAL PERFORMANCE
2019 2018 Actual Actual $000's $000's
Revenue 1,540 1,465
Expenditure 2,094 1,511
Net Surplus/(Deficit) for Year (555) (46)
INCOME DERIVED FROM COUNCIL
2019 2018 Actual Actual $000's $000's
Operational Grant 943 929
Collection curation service contract 3 3
Sponsorship 4 0
Total Council Derived Income 950 932