Facility Partnerships Policy Te Kaupapa Here Tuhononga Wahi Urunga

1 Nau mai e te hā, piki ake e te ora, Kia whakairihia koutou e au roua aku mahara ki nga hua o te pai, He Mihi ki te tāhuhu o te whare ki ngā wheako o te mahi nui e whakakāinga nei i te tini me te marea. me te hāpai i ngā manako o te iwi ki ngā taumata o te whakaaro nui, Koinei rā ko au, ki te ewanga o te wairua hihiko, he uri taketake no tēnei whenua, ki nga tihi o manawa rū. kua ranua e ngā ope taitāngata o te ao, Kia eke whakauaua ki te keokeonga o te maunga i hua ai te tātai hou. e ea ai a tamarahi ki te rangi; Tāmaki E taku rahi e horapa nei i te whakakūitinga Herenga waka o ngā takutai tapu o te Manukau, Urunga tāngata me ngā wai rukuruku o Te Waitematā Nau mai e ngā mana tūpuna, i tōia atu rā a Tainui mā uta, kia tū whakahīhī ai ko mātou kia tau mai ai a Māhuhu-ki-te-rangi ki tōna urunga i Ōkahu. i raro i te maru o tōu atawhai E tangihia nei e aku mokopuna me ō manaakitanga. kāinga o te upoko rehe, o te māpuna kua riro tītapu.

Give me breath, give me life and the bathing waters of the Waitematā we, descendants of the original settlers, and inspire me to do well, from whence Tainui was hauled overland, infused with the pedigree of those who followed, to enjoy the rewards of great enterprise and Māhuhu-ki-te-rangi came to rest at Ōkahu. an ancestry now born of this new world. and help raise the aspirations of the people to the heights of thoughtful contemplation, There, descendants lament Tāmaki a place that embellishes our inquiring minds and to the peaks of elation, Anchorage for waka epitomizes all that is fine in our world. and ultimate delight. Gateway for people So that ambition well met Let me raise you To those from whom we all descend, will be the boast of heaven itself; to the ridge pole of this house allow us to stand with pride that shelters the multitudes. To all who reside upon the isthmus in the safe shelter of your good care that lies between the sacred tides of the Manukau, That allows me now to proclaim and nurture.

2 A facility Community facilities are… partnership is... Ko te wāhi urunga ā-hapori he… Ko te tūhononga Places and spaces where Aucklanders can participate, play, learn, wāhi urunga… share, improve their health and wellbeing, celebrate and belong. Where Auckland Council invests They include… in community facilities owned or operated by others, so Aucklanders can access more of the quality facilities they need, faster and more cost-effectively. He mea e whakaae ai Te Kaunihera o Tāmaki Makaurau ki te mahi me ētahi atu ki te hanga  Community centres, hubs, Marae and Libraries whakaurunga e hiahiatia ana e te hapori. halls and mobile facilities and cultural centres Facility partnerships bring Auckland Council special purpose facilities (e.g. together with community organisations, youth centres, men’s sheds) government agencies, business, private and philanthropic investors to deliver more for Auckland than we can achieve alone.

Arts centres and Indoor sports centres like Outdoor facilities like performing arts centres multi-sports centres, sports fields, skate parks, swimming pools, leisure playgrounds, splashpads centres, indoor courts / and outdoor courts gymnasiums 3 the purpose the model

Facility Partnerships Policy: contents the facility the investment

the agreement the relationship Te Kaupapa Here Tūhononga Wāhi Urunga: ngā kai o roto

1 2 Six dimensions of facility partnership The purpose He ono āhuatanga o te tūhonotanga wāhi urunga The model Why we support facilities...... 6 The facility partnership lifecycle...... 14 Why we support partnerships...... 7 Is this a facility partnership?...... 15 Why we need a policy...... 8 Tracks: proactive and responsive...... 17 Facility partnerships Types of facility partnership...... 19 The purpose The model and te ao Māori...... 10 Te tikanga Te tauira Scales of facility partnership...... 22 Who makes investment 6 decisions?...... 25

The facility 3 The facility Facility The investment Land and building Partnerships Te wāhi urunga Te haumitanga The investment considerations...... 42 Policy Investment tools...... 26 Investment principles...... 27 Eligibility for investment...... 32 5 The agreement The relationship Te whakaaetanga Te herenga Investment priorities...... 34 The agreement 4 Our commitment to ethical practice...... 40 The relationship Legal considerations...... 41 Our partnering principles...... 36 Our partners, our staff...... 37 Our roles and responsibilities...... 39

4 the purpose

1. The purpose Te tikanga Why we have facility partnerships E aha mātou i aro ai ki te tūhononga wāhi urunga Through facility partnerships, the council may invest in tangible things, like buildings, equipment, staff salaries and services. But what we are really investing in is the short, medium and long-term benefits these things will deliver: places to get together, opportunities to have fun and learn, healthy people, safe and attractive neighbourhoods… ultimately, a better quality of life for all Aucklanders.

We provide facilities not for their own sake, but for what they programming the facility; and when evaluating the success of enable people to do and achieve, and because they make Auckland the facility and the partnership over its life. a better place to live. Community facilities contribute to building During the selection stages, a focus on outcomes helps each strong, healthy and vibrant communities and foster belonging and partner’s decision-makers to understand what needs the facility will pride. They are an important part of realising the vision for meet and what they will contribute, and to target their investment Auckland as a ‘world class’ city. The council has already set a where it can have the biggest impact. number of specific priorities around the outcomes that Aucklanders most need and want to see delivered through facilities. During the facility’s active life the outcomes we’ve agreed will help staff work with facility partners to shape provision, and target because they can enable the council, We seek facility partnerships access to those the facility is intended to benefit. These outcomes co-investors and the community to provide more of the facilities also help us monitor use and effectiveness of the facility (and the Auckland needs, faster and more effectively. services and activities it enables) throughout its life. This aligns with our obligations under The Local Government Act, which requires the infrastructure we deliver to meet current and During regular evaluation, we and our partners will be assessing future needs, in a way that is most cost effective for households if the mutal benefits we wanted have been realised, and reflecting and businesses. on the experience of the partnership itself.

Given that the community outcomes and benefits are the purpose of facility partnerships, they should be the most important consideration for all partners: when deciding whether to enter a partnership and how to shape it; when managing and

5 the purpose We provide facilities because they benefit Aucklanders Ka whakatū wāhi urunga mātou nā te mea he painga mō te iwi o Tāmaki Makaurau

Facilities enable a wide range of social, cultural, environmental and economic outcomes that benefit the community, including:

Supporting local Helping  Helping to Valuing te ao Enhancing community identity, Aucklanders to make arts and Māori and enabling and protecting our pride, belonging, be more active, culture part of our Māori aspirations natural environment participation and more often everyday lives and our built and improving people’s cultural heritage wellbeing

e.g. Auckland Plan, e.g. Auckland Plan, Sports e.g. Auckland Plan, e.g. Auckland Plan, Thriving Communities, e.g. Auckland Plan, Thriving Communities, and Recreation Strategic Toi Whitiki I am Auckland, Toi Whitiki, Sports and Unitary Plan I am Auckland, Toi Whitiki Action Plan Recreation Strategic Action Plan

“The community gardens have “We have a lot of new migrants “My teenagers play sport down “Having the art centre is great “We run programmes at the really improved the environment in our neighbourhood. We there – it’s good for their fitness for the town – they run lots of marae that improve people’s down there, and I think it’s needed somewhere welcoming and confidence, and it helps classes there, and it’s made the lives; that build mana and changed how people feel about for them to go to meet new them learn respect and whole place feel more vibrant connection with culture. Māori the reserve. They’re growing people and learn about life in teamwork. And keeps them out and alive. Well, you can see feel more comfortable here; native seedlings there to replant Auckland. It helps to bring the of trouble – there wasn’t much – the art has spilled out most don’t go to the along the stream banks, and community together.” to do round here before!” onto the streets!” community centre.” people aren’t dumping rubbish in the stream anymore.”

6 the purpose We seek facility partnerships because they enable us to... Ka kimi tūhononga wāhi urunga mātou kia āhei ai mātou…

Leverage Empower and enable Optimise ki te hautū ki te whakamana kia eke panuku ai

• Partnerships can leverage external investment, • Partnerships are a way for the council and its • Partnerships can optimise space and maximise infrastructure and effort to deliver better community partners to empower and enable communities to investment, by bringing together multiple groups facilities than could otherwise be delivered, by build their mana, prosperity, resilience, skills and to share one facility, or by breathing new life into spreading their cost between more stakeholders. This capacity. existing assets that the communities already use is critical in a context of financial constraints, growing and value, instead of building new ones. demand, scarce land and increasing construction costs. • Partnerships are a tangible way to meet our Treaty of Waitangi obligations to work in partnership with • Investing in partnerships may not require building • The council, community and sector organisations, Māori, which go beyond our role relative to other bricks-and-mortar assets, which reduces financial iwi, businesses, government agencies and other co- sectors of the community. By supporting Māori-led pressure and delivers a flexible network that can investors each bring unique and complementary facilities, we show respect for mātauranga Māori respond faster to growth and change. knowledge, skills, networks and strengths to the table. (knowledge), manaakitanga (hospitality) and kaitiakitanga (guardianship).

• Auckland is becoming super-diverse, and community-led, Māori-led or sector-led facilities may be more effective at meeting needs than a council-led alternative. “Our users said they didn’t visit the “The school has offered the land for council centre because their English was the new centre, the council is managing the poor and they felt embarrassed. We offer design and construction, the sports trust has much the same services and activities, signed up a major donor, and local businesses but they are among people of a similar are providing building materials at cost. And age and cultural background, and they the local community is going to get can practice their English together.” an incredible facility!” “Our group started as a few volunteers wanting to reduce crime in our town centre, but we ended up “Our organisation has a reputation in this registering as a charity and working “We welcome everyone who wants to come community that stretches back decades. We with local youth, rough sleepers and here – thousands of people do, every year – know all the service providers, and can help the long-term unemployed. The and we will manaaki our visitors as we always people get the support they need. But we men’s shed is going to really have done. But we would welcome greater really value the council’s technical expertise enhance the work we can council recognition of our role. Funding is a around managing buildings, and the legal do, but it’s a big step for us.” huge help, but for us the relationships and and accounting side of things.” respect are just as fundamental.”

7 the purpose We need a facility partnerships policy for... Me whai kaupapa here tūhononga wāhi urunga mātou... Clarity Strategic Sustainability Kia mārama decision Kia whai hua tokonga roa tonu -making Kia tika ai te whakatau rautaki

Policy helps develop a Given limited resources, Policy commits us to shared understanding of policy helps us partner investing and supporting partnership, through: more strategically, by: for success, by:

• Establishing clear and consistent • Aligning our partnerships investment to • Requiring ongoing costs and a realistic language around partnerships existing strategies, policies and plans, with a business and operating model to be identified, ensuring facility partners are able focus on addressing the greatest needs first to run and maintain safe, quality facilities to • Setting out why, when and how we will the standards the community expect. • Ensuring we consider the costs and oppor- partner, including being both more tunity costs, downstream benefits and intentional and more responsive in our • Setting realistic expectations of partners and savings, trade-offs and risks before making partnerships, ensuring we consider and cost partnering with Māori decisions support needs upfront and ‘play to strengths’

• Better differentiation of the different types • Treating partner relationships with the care • Ensuring we’ll see evidence of the outcomes and seriousness they deserve, including of partnership, reflected in fit-for-purpose we’ve invested in and the value that’s been coordinating our support and advice within decision-making pathways and processes delivered, while recognising partnerships can council to ensure a consistently good that are proportionate to their scale and risk. benefit communities in multiple ways. experience for all of our partners.

8 the purpose Where does the facility partnerships policy fit? Ko hea te kaupapa here tūhononga urunga noho ai?

Unitary Plan

What can Auckland Sport and Sports Facilities Council land Long-Term Community-Led we do, where? Recreation Strategic Investment Plan and property Plan Community Action Plan Occupancy assets Parks and Open Open Space Annual Plan Guidelines Spaces Strategic Community Grants Provision Plan Local and Local Board Action Plan Regional Policy Community Agreements Facility Partnerships Toi Whītiki: Arts and Facilities Culture Strategic Facilities Policy Action Plan Network Plan Local and Council-Led Thriving Communities Regional Council facilities Auckland Plan Tākaro – Strategic Action Plan Services Council services Investing in Play We are here! I am Auckland - Market-Led Local Board Children and Young Procurement Policy People’s Strategic Plans Unsolicited Proposals Action Plan Policy Māori Plan for Tāmaki Strategic Partnerships Makaurau Policy

Outcomes Our role Priorities Delivery Budget Mechanism

What is the vision? What specific outcomes What should council Will we deliver the How much will we invest How will we enable the What outcomes are we do we want for different invest in, and where, to outcomes by providing in the outcomes? community and the working towards? populations, sectors, deliver these outcomes? land, facilities or services, How will we allocate: market to deliver the places, activities? or a combination? outcomes, alongside What will success What are the priorities, to Capex (for assets) What is our role in address needs and gaps? direct council provision? look like? Opex (for everything else) delivering them? How and where will Auckland grow? 9 the purpose Facility partnerships Delivering Māori outcomes through facility partnerships and te ao Māori He mea kia Māori ngā hua ka hora mā te tūhononga wāhi urunga Te tūhononga wāhi urunga me Supporting Māori Māori outcomes through te ao Māori values / directions arts and culture Building on our • Whanaungatanga / Develop vibrant • Promote and develop marae as communities regional cultural hubs founding partnership • Rangatiratanga / Enhance leadership • Promote Māori art and culture, locally and Te whakapiki ake i tō mātou oro and participation internationally through the development of Māori cultural centres tūhononga • Manaakitanga / Improve quality of life • Wairuatanga / Promote distinctive identity Te Tiriti o Waitangi/the Treaty of Waitangi “Māori culture is ‘Auckland’s point of is our nation’s founding document and • Kaitiakitanga / Ensure sustainable futures difference in the world’… we are proud of recognises the special place of Māori in Māori cultural identity and celebrate it.” – The Māori Plan for Tāmaki Makaurau New Zealand. – Toi Whītiki – Arts and Culture Strategic Action Plan Auckland Council is committed to engaging Promoting Māori and working with Māori in ways that are identity and wellbeing consistent with the Treaty Principles. This includes supporting delivery of services by • Advance Māori wellbeing Māori outcomes through Māori for Māori, based on te ao Māori values • Promote Māori success, innovation sport and recreation and practices. and enterprise • Health and wellbeing for Māori Facilities contribute to Māori well-being by • Recognise and provide for Tiriti • Value te ao Māori providing spaces to connect, socialise, learn, o Waitangi outcomes participate in and celebrate Māori identity and • Showcase Auckland’s Māori identity “We will acknowledge the special role of culture. Partnerships enable the council and and vibrant Māori culture Māori and enable participation in decision- Māori to share mana, mātauranga and making, to build lasting reciprocal resources to support Māori aspirations and relationships and improve physical activity deliver Māori outcomes. Facility partnerships “Kaupapa Māori and Māori-led outcomes for Māori… This will be achieved provide a way to jointly deliver Māori organisations… continue to be critical through working in partnership with iwi and outcomes through marae, facilities, and to the delivery of appropriate and effective appropriate organisations.” – Auckland Sport other spaces and places. services for Māori…. Actively partnering and Recreation Strategic Action Plan with others is a key mechanism for Auckland Council to support Māori identity and well- being.”– The Auckland Plan 10 the purpose The Treaty Principles Ngā Mātāpno ā-Tiriti Applying the Principles Te whakauru i ngā mātāpono Treaty principles have been recognised and expressed by the Waitangi Tribunal and a range of Courts – the Privy Council, Supreme Court and High Court. The principles bridge the two texts of the Treaty, focusing We will seek facility partnership › referring to marae as marae, on the intent of the Treaty and the future. opportunities and arrangements not facilities, upholding their mana by observing tikanga, The Treaty Principles will help guide how the council and Māori with Māori that: and encouraging others to work together to establish, shape and manage facility partnership • Recognise Māori rights of do the same arrangements. independence, autonomy and self-determination. › acknowledging and Relevant principles for facility partnerships include: valuing the mātauranga • Actively build the capacity and resources that go into Rangatiratanga – the duty to recog- obligations and benefits. Each needs to and capability of hapū, mana providing manaakitanga nise Māori rights of independence, retain and obtain sufficient resources whenua and mataawaka. autonomy and self-determination, to prosper, and each requires the help › acknowledging that the including the capacity of hapū, mana of its Treaty partner to do so. This • Are a shared enterprise, needs of iwi, hapū and whenua and mataawaka to exercise includes the notion of equality (for offering mutual benefit to whānau must take authority over their own affairs. This example, in education, health and other Māori and non-Māori. principle enables the empowerment socio-economic considerations). precedence on marae. of Māori to determine and manage • Take account of the needs and Options – recognising the authority matters of significance to them. Further, we will: of Māori to choose their direction, to interests of Māori partners, and Partnership – the duty to interact continue their tikanga (customary ensure our needs and interests Acknowledge Māori hold a in good faith and in the nature of a practice) as it was or to combine are clear to Māori looking to long-term holistic view of partnership. There is a sense of shared elements of both and walk in both partner with us. the world, where values and enterprise and mutual benefit where worlds. This principle includes relationships are paramount. each partner must take account of the recognition of Māori self-regulation. • Help to achieve equality needs and interests of the other. of outcomes for Māori. Acknowledge that individual The right of development – the Treaty partnership arrangements need Active protection – the duty to right is not confined to customary use • Assist Māori in the develop- to align with the kaupapa and proactively protect the rights and or the state of knowledge as at 1840, ment of their properties and interests of Māori, including the need but includes an active duty to assist aspirations of individual hapū, taonga. to proactively build the capacity and Māori in the development of their marae or Māori organisations. capability of Māori. properties and taonga (treasures). • Respect te ao Māori and Welcome partnership discussions Mutual benefit – to recognise that tikanga Māori, including: with marae and Māori facilities benefits should accrue to both Māori › accommodating Māori and non-Māori, to enable both to already serving their com- participate in the prosperity decision-making structures munities, to explore how the of Aotearoa giving rise to mutual and processes council can tautoko (support) their activities.

11 the purpose Facility partnerships with marae Ngā tūhononga wāhi urunga me ngā marae

1 Mana whenua: The people of the land who have mana or We recognise marae as focal points for Marae have distinct characteristics that customary authority – their historical, cultural and Māori social, cultural, and economic facility arrangements will acknowledge genealogical heritage is attached to the land and sea. development. and reflect. 2 Mataawaka: Māori whose authority resides outside the Auckland Council region. Marae are specifically identified in the Marae are unique. Community Facilities Network Plan as Marae are inseparable from their whenua, potential partners. The council may partner with: their tūpuna, their people and their history. Marae in Tāmaki Makaurau may be mana The word ‘facility’ doesn’t fully express their whenua1 or mataawaka2, large unique role, or recognise the integral practice Iwi and hapū or small, rural or urban. of manaakitanga. Some are primarily gathering places for their Marae are taonga. Marae (mana whenua, tangihanga iwi or hapū, others are situated within school, or taurahere) church and institutional settings. Marae have mana; they are a taonga. Marae have specific tikanga that must be followed Many play a broader community role, hosting to uphold their mana. Other whakapapa-based groups a holistic range of activities including: (where members descend from a Marae also contain many taonga, especially • papakāinga and emergency in their wharenui (meeting houses), and common ancestor) accommodation some have pā or urupā on their sites that are • formal and informal gatherings off-limits for visitors. Kaupapa-based Māori • language and cultural instruction Marae are tūrangawaewae. organisations (formed around a specific purpose) • Māori arts and cultural activities For Māori, their marae are home and ‘a place to stand, and their needs must take • health and wellbeing centres precedence. Takiwā-based Māori organisations • community and rongoā (medicinal) (focused on a particular place) Marae may be required by iwi, hapū and gardens whānau at short notice – e.g. for tangihanga • whānau-centred social services – and are not available to the community at these times.

12 the model

2. The model Te tauira

Facility partnerships are not ‘one size fits all’. TRACKS Ehara i te mea kotahi anake te kaupapa hei whakatū tūhononga The tracks reflect whether the council or wāhi urunga. the partner(s) initiate the facility partnership, and how this impacts our Some partnerships will be simple arrangements between the council investment and decision-making. and one community partner, with the council providing the majority of the financial investment in the form of land, buildings or funding, and the partner providing grassroots know-how, networks and programming expertise.

Other arrangements will be much larger and more complex, TYPES with multiple investors sharing the capital development costs of Our four broad types of facility a new facility, and professional operators playing a role alongside partnership are primarily differentiated by community partners. (Where commercial entities are involved, the ownership of the proposed additional considerations and council policies will come into play facility, and how we invest in it. – see p31.) The council will consider a wide range of partnership arrangements, within broad parameters. The important thing is not a partnership’s size or shape, but whether it has the necessary ingredients to successfully and sustainably meet the community’s needs. SCALES Given the variety of potential scenarios, it is important that our Our facility partnership scales reflect the processes can adapt to suit. This section describes the building project’s size and complexity, and will blocks of this flexible model: the Tracks, Types and Scales. It also shape the level of planning and due outlines the facility partnerships lifecycle, which sets out decision- diligence we and partners must undertake. making and management stages that apply to all facility partnerships. The policy provides only a high-level snap-shot of our model: detailed guidelines, forms and tools are available to support partners, staff and decision-makers to navigate each stage of the partnership lifecycle. 13 The facility partnerships lifecycle the model Te mataora tūhononga wāhi urunga Staff will work with potential partners to establish their proposed partnership’s Track, Type and Scale, All facility partnership proposals will pass through the same overarching decision- and develop a customised ‘road map’ to help them making process, but what happens at each stage will vary depending on the model anticipate the journey ahead. of each individual partnership.

Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Stage 7

Introduce Strategic Initiate Plan Detailed Execute Review & identify Gate 1 assessment Gate 2 / scope Gate 3 & evaluate Gate 4 planning Gate 5 & deliver Gate 6 / renegotiate

Outline the proposal at Build the case for the Scope the facility, the Make the business case Prepare a detailed project and Execute the project plan, Monitor and periodically a high level and gauge proposed facility and partnership and funding for the project’s funding plan and partnership open the facility review facility support partnership plan in more detail desirability, feasibility agreement for approval Complete and sign o partnership over Early conversations between Research the need or Flesh out the proposal to and viability Complete detailed project any capital works (build agreed term council and potential opportunity to provide outline a high-level Prepare and cost facility planning, confirming costs, and fit-out or re-purpose Monitor and evaluate partners (including any an evidence base for the facility specification, concept plans, firm up funding and timeframes, and refit), open the new facility and partnership anticipated co-investors) proposed facility and potential location(s), the location, operating obtaining approvals and facility and formally performance as agreed to establish the need for a partnership, and make likely governance and model and business plan, consents and finalising legal celebrate the launch of to ensure requirements facility, the outcomes it will the case for investment operating model and a and undertake a and relationship management the facility partnership are met, appropriate deliver, its likely type and business plan cost/benefit analysis arrangements support is available and scale and the investment outcomes will be required. delivered

Low commitment / investment Medium commitment / investment High commitment / investment

Key Documents at each stage (actual documnetation required will vary depending on the individual partnership)

Facility Partnership Initial proposal Full proposal Feasibility study Final facility design Project reports Performance reports Canvas Strategic assessment Schedule of spaces, Business case(s) Detailed project, Performance reports Facility Partnership Needs assessment bulk and location plan Facility concept plans funding and business Review (if applicable) plans Draft partnership High-level funding plan agreement Partnership agreement Contact us and business plan Performance for a large print agreement version of this page

14 the model Is it a facility partnership? He tūhononga wāhi urunga rānei ia?

Auckland Council invests in community outcomes in a range of ways. If a community organisation needs access to a facility, we won’t always These include operating facilities and services directly, supporting the need a partnership to manage the arrangement – sometimes a simple community sector’s delivery through grants, partnerships and leases, and community lease or venue hire agreement will be sufficient. procuring services from market providers. The table below shows where facility partnerships fit, and how they relate We don’t always need facilities to deliver the benefits we’re looking for, so to a range of other key mechanisms for delivering outcomes. we’ll only consider facility partnerships where a physical asset is essential.

What is the council Mechanism funding or providing?

Community grants Sports, arts or community Council procures sports, arts or for services and activities Services only services and activities, directly community services and activities delivered by sports, arts and delivered by the council from private sector providers community organisations

Council-owned and operated FACILITY PARTNERSHIPS Council procures community Services and assets sports, arts and community with sports, arts and access to private sector facilities community organisations facilities

Community leases Parks, open space and non- for council properties (land Council properties (land and Assets only staffed council facilities (e.g. and buildings) – occupied by buildings) commercially leased venues-for-hire) sports, arts and community by the private sector organisations

Who is leading delivery? Council-led Community-led Market-led

15 the model

What is the council Mechanism funding or providing? Community

Community grants Sports, arts or community Council procures sports, arts or for services and activities grants services and activities, directly community services and activities Services only delivered by sports, arts and delivered by the council from private sector providers community organisations

Council-owned and operated FACILITY PARTNERSHIPS Council procures community Services and assets sports, arts and community with sports, arts and access to private sector facilities community organisations facilities If it’s... If it’s...

Community leases Parks, open space and non- for council properties (land Council properties (land and • One-off • A grant for Assets only staffed council facilities (e.g. and buildings) – occupied by buildings) commercially leased venues-for-hire) sports, arts and community by the private sector organisations funding operating a You can find out more about

Who is leading Council-led Community-led Market-led • Not supporting facility delivery? community grants and leases, facility • Multi-year council-run facilities and services, operation funding • Not part of the • Part of the and Auckland Council’s procurement council facility council facility processes on our website at network network www.aucklandcouncil.govt.nz It’s a grant It’s a partnership

If it’s a... If the... • For-profit legal entity (e.g. LLC) • Staff are employed / managed by the • Profit-generating facility – surplus community partner retained by partner (private gain) • Services are partially funded FACILITY • The asset may be transferred to It will be handled through procurement community ownership PARTNERSHIPS Council It’s a partnership Council with sports, arts If it’s a commercial arrangement, but... facilities and community • There’s a social enterprise or charitable procurement entity or charitable partner within the larger If the... organisations consortium, AND/OR • Council owns the facility • Any operating surplus will be reinvested in • Staff are employed / managed by council the facility or an approved purpose • Services are fully funded by council It’s a partnership It’s a council facility

If it involves... If it involves... • Funding for • Use of the services or asset only This diagram shows some of the capital • Member-only particular characteristics or changes improvements use • Wider • A simple lease in circumstance that could trigger a community use arrangement move between a facility partnership • A complex • A non-strategic and one of the four other investment arrangement property asset • Use of a mechanisms shown. It’s a lease strategic Community Contact us property asset leases for a large print It’s a partnership version of this page

16 the model Tracks: Starting the partnering conversation Ngā ara: Te tīmata ki te whakawhiti kōrero tūhononga

Partnerships can be initiated by either the council or the partner(s). The Track a partnership starts on will impact the investment available, and when and how proposals will be accepted.

PROACTIVE TRACK RESPONSIVE TRACK

Council actively seeks Council approaches a A potential facility partner(s) A potential facility partner(s) potential facility partners potential partner(s), with an approach council, which approaches council, about an through an open tendering opportunity specific to triggers a tendering process opportunity specific to them process them

Funding

Fully or partially budgeted through the Long-term Plan Unbudgeted In-kind support may also be available In-kind or contestable funding support may be available Co-investors may choose to invest alongside the council Support from other investors may be required

Getting started

Starts with Community Facility Tender (EOIs) (Stage 2) Starts with early conversations (Stage 1)

Progressing

Stage 1 and 2: decisions to progress twice per year Opportunities may be advertised and proposals progressed Stage 3 and 4 proposals requiring funding: decisions at any time of the year to progress once per year

17 the model

Tracks Ngā ara

Proactive Track Responsive Track Proactive Track partnership opportunities are aligned to network gaps Responsive Track partnerships are those where a partner identifies a identified by the council in the relevant network and investment plans. gap or unmet need in their community or sector, and approaches the council for support.

The council allocates budget to detailed project plans and business By their nature, there is no ‘budget’ Partners can initiate early address high priority network gaps cases for shortlisted proposals set aside for Responsive Track conversations on the Responsive through the Annual Plan and Long- (Stages 3 and 4). Business cases for partnerships, and potential partners Track at any time (Stage 1). term Plan processes. When an market and direct delivery options will have to do more upfront work Responsive Track Proposals at indicative budget has been may be considered alongside to make the case for investment. Stages 1 and 2 will be assessed by allocated to address a high priority partnership options. This includes not only any funding staff twice per year, with decisions to gap, the council will identify those that may be required, but the staff progress to the next stage made by In some cases, the council may have opportunities which may be resource to support the relationship the regional or local decision-maker. a specific gap where there are only suitable for partnership delivery, over time. one or two potential partners due to In some cases, the decision-maker and release a Facility Partnership the nature of the location, activity or If the investment required is may agree that the need identified Tender to call for proposals from population being targeted. In these significant, Responsive Track in a responsive Track proposal is a potential partners. cases, the council may approach a partnerships would need their priority, but want to initiate a wider As these opportunities have been partner or partners directly to regional or local decision-maker (as tendering process to explore identified by the council through its explore the opportunity together. appropriate) to advocate for new alternative ways of addressing it own network planning processes, funding through the Annual Plan or before committing to a specific Decisions to progress Proactive some aspects of the business case Long-term Plan process. partner or partnership. track proposals through the key for a facility partnership on the gates in our decision-making However although funding is more Responsive Track proposals at Stages Proactive Track will already be in process (Gates 2, 3 and 4) will be limited for Responsive Track 3 and 4 that require funding will be place. These specifications will made by the relevant decision- partnerships, decision-makers may assessed by staff once per year, prior inform the Facility Partnership maker at regional or local level. still be able to commit other kinds to the Annual Plan, to enable Tender, which begins with an of support – e.g. use of council unbudgeted funding requests to pass Expressions of Interest round (Stage assets, or support from staff – if through approval Gates 3 and 4 as 2), followed by the preparation of they accept the idea has merit and part of the Annual Plan process. meets a genuine community need. 18 the model Types: What the partnership will involve, and who owns the facility Ngā momo: He aha ngā whakaritenga ka uru ki te tūhononga, nō wai hoki te whakaurunga

All facility partnerships will fit into one of four broad types. The types are differentiated by the ownership of the land, and whether we are building new or working with an existing property.

The facility partnership Type is significant to our decision-making process, because it will determine the:  Some projects may transition from one Type to another, Need for funding, or Whether we will be Steps we need to go through Form and complexity of the through discussions, research committing the use working with other at each stage, including plan- legal agreements that will and reformulating the proposal, of council assets funders / investors ning and consenting through underpin the partnership or as new opportunities present (land and buildings) the council’s regulatory arm themselves over time.

1 2 3 4 DEVELOPMENT ASSET ACTIVATION ACCESS partnership partnership partnership partnership

When the council partners with When the council partners with When the council partners with When the council partners with another organisation(s) to: another organisation(s) to: another organisation(s) to: another organisation(s) to: Develop a new facility, or Develop a new facility, or significantly Activate a vacant or under-utilised Open up (or increase) community significantly upgrade an existing upgrade an existing one, on land council property as a community, arts access to an existing facility owned one, on land owned by the council. owned by a partner. or sports facility. and operated by a partner.

NEW FACILITY NEW FACILITY EXISTING FACILITY EXISTING FACILITY

COUNCIL LAND PARTNER LAND COUNCIL LAND PARTNER LAND

e.g. e.g. e.g. e.g. Five sports codes get together to New outdoor courts and playing Artist studios and exhibition A marae is funded to provide develop an indoor sports centre fields for community use are space are established in an empty bookable community space in a on the site of an old squash club developed on school property council property. fast-developing rural area. on a council reserve. owned by the Ministry of Education. 19 the model

1 2 3 4

DEVELOPMENT ASSET ACTIVATION ACCESS partnership partnership partnership partnership

Strengths of this partnership type

May be able to leverage May be able to leverage other Majority of investment is in-kind, Provides a lower (cash) cost way other government / philanthropic government / philanthropic so lower upfront (cash) cost, to address a network gap funds towards capital funds towards capital reducing cost to ratepayers compared with building a council development costs development costs facility, reducing cost to Activates existing council ratepayers Should provide a lower (cash) Should provide a lower (cash) property – often well-located with cost way to address a network cost way to address a network other community infrastructure Good option in growth areas gap compared with building a gap compared with building a with limited land available for council facility, reducing cost to council facility, reducing cost to Can build on existing relationships facility development ratepayers ratepayers with proven delivery partners Suits partners with spare Activates existing council land – No reduction of public Opportunity to build capacity looking to increase often well-located with other open space capability and capacity of their use and revenue community infrastructure community organisations to meet No council land involved their own needs, and leverage Partner likely to be an Opportunity to build can mean a shorter process: volunteer input experienced facility operator capability and capacity of faster to progress to design with proven track record community organisations to meet and build stage Low risk arrangement, their own needs, and leverage either side can exit Opportunity to recognise role volunteer input Partner may be an experienced relatively easily and build capability and facility operator with proven sustainability of existing Long-term network solution, track record community facilities as the asset will usually be vested to council at conclusion of Low risk arrangement, either partnership side can exit relatively easily

20 the model

1 2 3 4

DEVELOPMENT ASSET ACTIVATION ACCESS partnership partnership partnership partnership

Challenges for this partnership type

Inexperienced partners may need Inexperienced partners may Smaller partners may need Presumes existence of partners substantial support to plan, design need substantial support to plan, substantial support to develop with desirable facilities + spare and build facility, and develop into design and build facility, and into facility operator role (funding capacity facility operator role (funding and/ develop into facility operator and/or staff time) or staff time) role (funding and/or staff time) Property may not be fit for Removes a property from purpose (e.g. accessible) without Reduces public open space (or Multiple partners involved in another portfolio upfront asset improvements other council land) funding, owning, managing, (e.g. venues-for-hire) using asset and land can make Tensions may develop between Additional steps in planning and decision-making more complex Property may not be fit for community and partner use consenting process where the purpose (e.g. accessible) without over time council is the landowner Tensions may develop upfront asset improvements between community and Not a long-term network Can be complications if partner use over time (e.g. Where capital work is required, solution; community access not commercial activities planned to facilities on school land) council as property owner means guaranteed past partnership sustain facility operation, additional steps in planning, term especially if land is held under May not be a long-term consenting, procurement Reserves Act network solution; community processes access not guaranteed past If asset paid for by community, partnership term Activating a council property need clear governance, legal will impact already stretched structure and exit strategy – as maintenance and renewals the landholder, ownership budget technically remains with the council

21 the model Scales: The size, complexity and risk of the partnership Ngā inenga: Te rahi, ngā whīwhiwhitanga me ngā raru tūpono o te tūhononga

Allocating each facility partnership a ‘Scale’ is the main way we will ensure our requirements and influence over decision-making will be proportionate to the circumstances.

Fit-for-purpose process Influence over decision-making Because no two partnerships are the same, it’s important to ensure Ideally, all partners would invest equally in a facility partnership, hold that our assessment, decision-making and management processes and equal power, and share the risks equally, but this won’t always be the case. practices are fit-for-purpose, and will protect the interests of the council, In most facility partnerships Auckland Council has been involved with, our partners and our communities. the council has been the biggest investor, taken on the most risk, and had the most at stake if the partnership or the facility were to fail. We won’t over-burden simple, low-cost, low-risk partnerships with excessive costs, processes and paperwork. But we will make sure that We will expect a level of influence over key decisions that is we fully investigate and monitor larger, higher risk and more complex proportionate to our level of investment and risk in the partnership, partnerships that will receive significant public investment. This is about and the capability of our partners. balancing our ‘empowering and enabling’ role with our obligations as a By ‘key decisions’, we mean those relating to: public entity. • The facility’s location, size, design, construction and fit-out The facility partnership Scale is significant to our decision-making process, because it will determine: • The facility’s operating model, financial management and key staff appointments • the planning, financial planning and due diligence we will undertake, and expect partners to undertake • The partnership’s legal structure, governance arrangements, and exit provisions. • the documents and evidence we will need to inform our decisions, and how in-depth these will need to be Staff will work with partners during the early and middle stages of facility partnership development to shape governance and management • any council support available to help partners complete each stage arrangements that enable our agreed decision-making role. and progress to the next decision gate Even where the council has a greater say in decisions, partners should still • who will make the decision at each gate, and how this will happen benefit from being in the partnership, and feel respected and supported in • approximately how long each stage might take and any associated all of their dealings with us. costs (e.g. consent fees, professional services) • the level of risk management and monitoring we will require • the level of benefits management and monitoring we will require. 22 the model

Allocating Scale Factor / Scale 1 2 3 4 There are six determining factors that will determine a partnership’s Overall value of < $2m $2m - $5m $5m - $10m > $10m Scale: investment over first • Overall value of our investment 10 years • Proportion of the total cost council is investing Proportion of the Less than 20% 20% – 49% 50% – 74% 75% or more total cost council is • Complexity / complicating investing factors

• Level of risk to council Complexity / Low complexity Medium complexity High complexity – complicating factors • Use of council assets • Proven capability of partner(s)

Level of risk to Low risk for council Some risk for Medium risk for High risk for Unsure? council council council council We’ve defined these terms over the page...

Use of council Funding support Occupying an Building on council – Different partnership assets only existing council land proposals will sit at different building points on the grid for each of the six factors. Proven capability of High capability, Good capability, Adequate capability, Adequate capability, In assessing a specific partner(s) excellent track satisfactory track some track record + some track record record record professional support facility partnership, we will use the highest scoring factor to determine the How we see our Minority partner Cornerstone Primary partner Guiding partner status within the partner Scale. partnership The higher the Scale, the longer the project is likely to Anticipated Partner(s) keep Partner(s) consult Council and Council guides key take, and the more costs decision-making council closely council prior to key partner(s) take key decisions in partners should expect role informed of key decisions decisions together consultation with decisions partner(s) along the way. 23 the model

The ‘overall level of investment’ will include both capital (construction) and operational (overhead) costs calculated over the first ten years of the partnership. We will also take into account the market value of any assets made available to the partner. Our ‘proportional level of investment’ will be calculated on the basis of council’s share of the total costs of the project over the first ten years of the partnership. ‘Complicating factors’ could include land status, zoning and condition, numbers and types of partners involved, and the proposed ownership, governance and management model for the new facility. Greater complexity may shift the project into a higher scale, even if the overall value is low. Where the land or building involved is a council asset, the council has an even greater responsibility to safeguard the wellbeing and interests of the wider community, and consider how the facility partnership may impact them. Accordingly, we will expect to have more influence where council-owned assets are involved. Our ‘level of risk’ will be assessed by council staff based on the specific circumstances of the partnership, the partners, the facility and the site. Our ‘partners’ capability’ will be assessed primarily on the basis of their track record of facility delivery and/or service delivery at an appropriate level, and/or whether they have factored in the support of suitably skilled and experienced professionals.

24 the model Who makes investment decisions? Ko wai ngā The Governing Body... Local boards... kaiwhakatau Focuses on region-wide strategic decisions Make most decisions on local places, facilities and activities haumi? Decides where and when the council will invest in the facility network to address gaps and May work together to support facilities respond to growth that benefit several local board areas Auckland Council has two complementary decision- Develops regional strategies – e.g. for arts Set outcomes and priorities for local making parts. The two and culture, sport and recreation – that set investment through local board plans governance arms each have outcomes and priorities for investment Identify local facility needs and advocate for distinct decision-making investment through the Long-term Plan responsibilities for facility Sets budget envelopes for overall facility network, and any major facility investments partnerships. or upgrades through the Long-term Plan Approve the specific location, design, build The allocation of decision- and fit out of new local recreation and sports facilities, community facilities, arts and making for non-regulatory Approves the number and general location cultural facilities and libraries, within the activities is set out in Auckland of all new recreation and sports facilities, community facilities, arts and cultural budget parameters agreed with the Council’s Long-term Plan (our facilities and libraries, and the prioritisation Governing Body 10-year budget), and may of major upgrades to all existing facilities change from time to time. The Make decisions on the use of local facilities, current Long-term Plan can be Makes decisions on the location, design and including leasing and changes of use viewed on our website. use of any new facilities developed for an Auckland-wide purpose. Govern local and sub-regional facility partnership relationships, funding or lease Governs regional facility partnership agreements and performance reporting relationships, funding or lease agreements and performance reporting Allocate local discretionary funding

25 3. The investment the investment Te haumitanga How the council can invest in facility partnerships

This section sets out the ways in which we and our partners might invest in facility partnerships, what kinds of Funding Funding Use of Use of Maintenance Staff support partnerships we can invest in, for operating for capital a public public and renewals and technical costs development and the principles that will building land expertise guide that investment. Funding Use of assets Support and expertise Land Leases We will value our ‘in-kind’ Capex and Opex Maintenance and renewals programme One-off or ongoing grants, Building leases / licenses to occupy Wide range of expert support staff support to provide a more contracts and operating subsidies Foregoing revenue earned from use Contracted specialists / technical advice accurate picture of our of council assets Brokering investment. Where a partnership includes How our partners can invest in facility partnerships investment ‘in-kind’ – e.g. free or very low-cost use of a council property, technical expertise or ongoing staff support – we will estimate the equivalent market value of the resource and include this in our calculations. Funding Funding Use of land Pro bono Volunteer Management Community for operating for capital or a building expertise time and programme insight and We will encourage and support costs development expertise networks our partners to do the same.

This will enable the council to Funding and Assets Voluntary contributions Professional expertise, compare the true cost and value Partners’ own financial contributors, including Fundraising in the community community knowledge of different partnership options revenue from other activities (e.g. social Pro bono professional services Facility management experience enterprise) when making investment Unpaid governors (e.g. Board of Service and activity expertise Grants and finance from Trustees) Community knowledge and contacts decisions, and when calculating other funders / lenders Volunteer labour (e.g. working bees) the returns. In many cases we Use of partners’ land and buildings will want to compare in-house Donated or discounted materials delivery, market provision and a Contact us for a large print range of partnership options version of this before making investment page 26 decisions. 26 Our investment principles Ngā mātāpono haumi the investment We will take a principled approach to facility partnership investment decisions. These investment principles underpin our eligibility criteria and investment priorities.

We will:

Principle 1 Principle 2 Principle 3 Principle 4

Invest Invest to Invest wisely, Invest for strategically, help achieve to deliver sustainability: based on equity for all the maximum We will seek investments outcomes: Aucklanders: value for that balance our desire to support community-led We will invest to deliver We will invest to address Aucklanders: innovation, with the need to known community needs and the outcomes outlined in By value, we mean the protect the council and the network gaps first. This is our strategies, policies services, activities and assets community from risk. We will about enabling everyone to and plans. We will judge (outputs) and the social, only invest in facilities we’re have access to good quality success based on the cultural, economic and confident will be desirable to facilities regardless of their benefits delivered for environmental benefits users, feasible to deliver and circumstances. Our communities on the (outcomes) that a partnership viable to operate. We won’t investments will balance ground. will deliver. We will invest in enter partnerships unless meeting the needs of existing those facility partnerships that we’re confident we can and new communities, and provide the best overall return commit to resource an communities of place, interest on investment. ongoing relationship. and identity. This may not mean the same levels or types of provision in every area.

27 the investment What the principles mean for eligibility Te take e āhei ai e ai ki ngā mātāpono Facility partnerships may take a wide range of forms, reflecting their diverse communities and circumstances. The eligibility criteria for receiving council investment through facility partnerships reflect our investment principles, and our duties and obligations as a local authority. Ineligible proposals won’t be progressed, although staff may be able to suggest alternative funding partners if the council can’t assist.

Principle 1 Investing strategically Te āta tuku pūtea haumi

We will only invest in: We won’t invest in facilities that: Once operating, we expect all partnership facilities to be: Facility partnerships where the Primarily deliver housing, education, 1 2 outcomes sought are a good fit with health or other services that are the Non-discriminatory, physically 3 the council’s and the other partner(s)’ responsibility of central government, accessible to people of all abilities, purpose as set out in our strategies, UNLESS the council is a minority and in all other respects compliant policies and plans, and the partner(s)’ investor alongside the relevant central with New Zealand (and applicable own vision, constitution, government agencies AND we’re international) human rights organisational strategy and/or satisfied that our investment will legislation. business plan. support enhanced community, Māori, arts, sport or recreation outcomes in line with our responsibilities as a local authority.

28 Principle 2 Investing equitably Te taurite o te tuku pūtea haumi the investment

We will only invest in: We won’t invest in facilities that: Once operating, all partnership facilities must be: Facilities that address identified Are exclusively or primarily to be 4 6 facility network gaps or unmet places of worship or other buildings Affordable, i.e. set their fees and 9 community needs. We will consider with religious purposes. charges at or below the level charged the broader picture of provision when The council will consider partnerships by similar community facilities. assessing ‘need’, including the with religious groups to deliver availability of non-council facilities multi-purpose community facilities, that are accessible and affordable to where we are satisfied that the facility the same target users. Our definitions is available and actively promoted for of community are not just place- wider community use, and is inclusive based, but also encompass com- and welcoming to the wider munities of identity and interest. community.

Facilities that will be open for use by Are political party offices OR will 5 7 the wider community. (Facilities may offer services or activities in order to be purpose-built for a particular promote a political cause. activity, but shouldn’t be exclusively for the use of the partner organ- Are, or include, commercial premises, 8 isation(s) and their members, or their unless certain conditions are met (see membership should be open to ‘Facility partnerships and commercial anyone who wishes to join). activities’ p.31).

29 Principle 3 Investing wisely Te matatau o te tuku pūtea haumi the investment

All facility partners must be: We won’t invest in facilities where: Once operating, all partnership facilities must be: A registered charitable organisation, Analysis shows it would be more cost 10 13 OR agree to invest profit (beyond any effective for the council or partner(s) Safe, properly maintained and legally 15 agreed cap) back into the facility, or to deliver the facility directly, and compliant for public use. an approved community purpose. there isn’t sufficient extra value gained to outweigh the costs. Willing and able to meet reasonable 16 We will only invest in: accountability and monitoring Where the facility partnership requirements. Developing new facilities where 11 will include capital works: we agree that a new built asset is essential to deliver the outcome, That are paid for by the council (in rather than a service, activation or 14 part or in full) or involve council- access response. owned property, at any point during Facility partnerships that we are the term of the partnership, the 12 confident will deliver thesame level procurement of goods and services of service to the community over the must align with Auckland Council’s same period compared with the Procurement Policy. alternatives,

a) AND at a lower total cost to ratepayers (accounting for all forms of support and investment over the life of the partnership, including any opportunity costs),

b) OR at a similar or higher cost than alter- natives, but where additional value will be delivered in return (in line with other strategic priorities).

30 Principle 4 the investment Investing sustainably Te tokonga roa o te tuku pūtea haumi

We will only invest in: We will only partner with: We won’t invest in facilities that:

Facilities that we are confident will Formally constituted organisations We won’t invest in facility 17 18 19 be financially viable and sustainable with a recognised legal structure. partnerships that have split – i.e. have credible business models ownership of the facility (e.g. where to meet establishment costs and the council would own one level, part ongoing operating costs (this can or area of a building or structure, and include any council investment). partner(s) would own another), or joint ownership (e.g. where the council and partners would each own a share of a building or structure). This is to ensure clear legal responsibility for assets throughout their life.

31 Facility partnerships and commercial activity Ngā tūhononga wāhi urunga me ngā mahi tauhokohoko the investment We recognise businesses and commercial activities can play a role in enabling viable facility partnerships, and we will support this in certain circumstances.

Facility partners may engage in commercial activities to offset Businesses can be co-investors in facility partnerships. their costs. Council will consider co-investing in a partnership alongside businesses that Council will actively encourage community partners to explore appropriate want to sponsor or otherwise support facilities in their communities. In these revenue generation opportunities to help them meet their ongoing operating cases, Auckland Council’s Strategic Partnerships Policy will apply. costs. This could include commercial activities run directly by the partner Businesses can express interest in a facility partnership opportunity. (e.g. a gallery shop or a coaching programme), a concession run by a private operator (e.g. a café), or operating a social enterprise that help support the Proposals on the Proactive Track: Businesses can respond to a Facility facility (e.g. a community garden). Partnership Tender advertised by the council. If selected to proceed past the first (EOI) stage, the relevant sections of the Auckland Council The following conditions will apply to facility partnerships that incorporate Procurement Policy and processes will apply thereafter. commercial activities in their business model, including social enterprises: Proposals on the Responsive Track: Auckland Council’s Unsolicited We must agree that the proposed commercial activity Proposals Policy will apply where businesses approach the council about 1 complements the purpose of the facility, and will increase public a facility partnership outside of the Facility Partnership Tender process. use and enjoyment of the facility and/or the surrounding site. Refer to ‘Proactive and Responsive Partnership Tracks’ in section 4: The Model for more information about the Tracks. The zoning of the land must allow commercial activity of the type 2 proposed, OR can be re-zoned to allow it, and the relevant From time to time, the council may contract commercial enterprises to decision-maker must support this change (investment in the manage council facilities through a formal procurement process, with partnership will remain contingent on this re-zoning). opportunities advertised in the usual way. These are not facility partnerships for the purposes of this policy. Any commercial activities related to the facility partnership 3 must return all profits to offset the operating costs of the facility, or in the case of a concession run by a private operator, to pay a lease set at market rates. Unsure? See the diagram on the next page Any surplus generated by commercial activities must be for what we 4 reinvested in the facility, or a community purpose approved mean by ‘social by us. enterprise’

32 Facility partnerships and commercial activity Ngā tūhononga wāhi urunga me ngā mahi tauhokohoko the investment

Not-for-profit Social enterprise For-profit

Charity Charity Socially supported by Social purpose Social benefit Commercial supported partly responsible grants & business enterprise enterprise by trade business donations

Sells some goods or Directly fulfils a Trades in order to fund Donates to support services to help fund core social mission a core social mission a social mission core social mission through trading fulfilled by others fulfilled by others

Businesses can be co-investors, Charitable organisations and social enterprises can enter facility partnerships or express interest in an with us, and engage in commercial activities to offset their costs (subject to advertised partnership the conditions outlined on the previous page). opportunity

33 the investment Using the principles to prioritise Principle 1 Principle 2 Investing strategically Investing equitably Te whakamahi i ngā mātāpono hei hanga rārangi whakaheke We will target our investment towards We will target our investment facility partnerships that: towards facility partnerships that: In a growing city, with constrained 1. Will deliver priority outcomes in line with 4. Target under-served populations, i.e. funding and limited land and buildings our existing strategies, policies and plans. communities of place, interest or identity, which available for community use, the council 2. Are Māori-led, and/or help to celebrate Māori have the greatest unmet need for community can’t support every facility partnership as Auckland’s unique point of difference in the facilities. For example, populations that are proposal we receive. Decision-makers world, and/or honour documented commit- geographically isolated, highly diverse, or will consider a range of factors to ments to Māori made by the former councils experiencing socio-economic disadvantage, determine which partnerships will in the Auckland region. and where there is insufficient provision by the deliver the most benefits for Auckland council, community or market providers. 3. Will capitalise on opportunities presented – both financial and non-financial – by the development or transformation of and are the soundest choice. areas of rapid growth and intensification. Principle 4 We will prioritise some facility partner- ship projects over others, in line with Investing sustainably the commitments made to Auckland, Principle 3 We will target our investment towards and with Aucklanders, in our existing facility partnerships that: strategies, policies and plans. We will Investing wisely identify the partnerships that are most We will target our investment towards 7. Can leverage non-council sources of capital likely to make an impact, in the areas facility partnerships that: investment or ongoing income, meaning the Aucklanders have agreed investment council will be covering less than 50% of the is most urgently needed. 5. Optimise use of the council’s or the community’s upfront development costs, or less than 25% of existing facilities and assets, including current the ongoing operating costs. Our priorities directly align with our facility partnerships that can make the case for investment principles, and we expect further investment. 8. Will develop facilities which are environmentally low-impact and sustainable in their design, all successful proposals will address at 6. Are for multi-purpose facilities (i.e. which can be Partnership proposals construction and operation. least one priority. used for a broad range of activities), and/or bring that meet multiple priorities will have a together multiple organisations and groups, who considerable advantage. would otherwise require separate premises.

34 Boosting the likelihood of investment Te whakarahi i te āhei o ngā mahi haumi the investment

Even after applying our investment principles, eligibility criteria and priorities, our funds and assets will still be oversubscribed. This page outlines other matters our decision-makers will take into account when choosing between partnership proposals. Staff will look for the following when advising decision-makers and making recommendations:

Principle 1 Principle 2 Investing strategically Investing equitably

Where the partnership will build the capacity, skills Where the proposed partnership would: P and resilience of the partner(s) and the community. honour a historical commitment between the council P and the partner(s) to work together, significantly increase goodwill, confidence or trust in the council P within the facility’s host community from a low base, Principle 3 otherwise have a significant positive knock-on or ripple effect Investing wisely P in the host community. Where the partnership would secure a prime location for the P facility otherwise unavailable or unaffordable to the council, and this location is likely to be a major contributor to its Principle 4 success. Investing sustainably Where the partnership facility would likely be better used than Where the partnership would leverage an established working relationship P a standard council-managed facility of the same type, because P between the council and the partner(s). the partner(s): Where the partnership would attract significant volunteer input, pro bono o have an established reputation with the local community, P expertise, or discounts on goods or services for the facility which are otherwise unavailable to the council. o have better access to the facility’s intended users than the council, and/or are better positioned to provide locally or Where each partner’s proposed roles and responsibilities reflect their individual strengths. culturally appropriate services. P Where the proposed partnership is ‘win-win’ and will provide clear mutual Where one or more partners (including the council) feel they’d P benefit for all parties, without undue workload, pressure or risk falling on O need to control the majority of decisions, to an extent that is smaller partners. disproportionate to their level of investment and risk. Where there’s either no ability or no desire to adjust the partnership – e.g. its O structure, deliverables, investment levels – if circumstances change, or initial expectations prove unrealistic.

35 4. The relationship Te herenga Our partnering principles the relationship

Partnerships may be agreed between organisations Ā mātou mātāpono tūhonohono – but ultimately, they are formed between people. Auckland Council will resource and treat facility partnership Relationships are what make partnerships different relationships with the care and commitment they deserve. This to contracts, and lift the commitment between partners commitment to quality partnership relationships means we will: above a transactional arrangement.

Quality relationships are foundational for a healthy facility 1 2 3 partnership: they set the tone for all of the work the partners do together, and are the springboard for any future collaboration. Be open, honest and Take responsibility for Factor in adequate upfront with our ‘partnering on the frontline and specialist Good relationships are built on trust and good faith, mutual partners (and potential inside’, acknowledging staff support as part of understanding and mutual respect. Good relationships can only partners) about what the council’s size and the business case for we can and can’t complexity can make any new facility be built over time and require ongoing effort. commit to and why, us difficult to partner partnership. This is the case whether the partner is a large government and follow through on with. We will prioritise the commitments we continuity in our agency, philanthropic or commercial investor, experienced make. We will relationships, and service provider or a small grassroots group. communicate regularly actively manage the with our partners, and transitions when key Auckland Council has committed to taking an Empowered keep each other in the people change. loop. Communities Approach when entering relationships with community-led organisations and projects – including facility partnerships. An empowered community is one where 4 5 6 individuals, whānau and communities can influence decisions, take action and make change happen about the issues that Recognise and value Support our less Seek to respond matter to them. partners’ financial and experienced partners together to any non-financial contri- in a way that builds challenges we The council’s Empowered Communities Approach is based on butions, and the risks capability in both encounter, with formal principles of equity, inclusion and collaboration, and aligns closely all parties take by directions: building disputes processes only working in partnership. the capability of our used as a last resort. with our commitment to realise Māori aspirations and outcomes. We will agree roles and partners to do things We will seek to work Our partnering principles provide guidance to council staff about responsibilities that for themselves, and through any issues play to our strengths, of our own people to related to differences how to work in ways that are more empowering of communities. and allow all partners work alongside them. in our working style to meaningfully par- and culture. ticipate in decisions.

36 Potential facility partners Ētahi tūhononga te tūpono aka the relationship Many different organisations and groups could play a role in providing or investing in facilities for Auckland:

Potential future facility partners for Auckland Council include:

 National and regional  Iwi bodies, marae and Tertiary institutions and Local trusts, societies,  Facility development Social enterprises, or organisations in the kaupapa Māori schools cooperatives, groups trusts (set up to enable other commercial community, arts and organisations and clubs smaller organisations to organisations delivering sports sectors collectively fund, develop, community outcomes govern and manage a shared facility)

Potential future co-investors in facility partnerships include:

Business Improvement Government ministries Funding agencies / Post Settlement Socially responsible Districts (BIDs) and departments philanthropic foundations Governance Entities businesses and trusts (PSGEs)

Our partners’ people can include:

 Boards of Trustees and Kaumātua, iwi or Management committees Management staff – e.g. Frontline staff – e.g.  Consultants, lawyers, Boards of Directors (may hapū liaisons for smaller organisations chief officers, directors, reception staff, advisors, accountants, be paid or volunteers) (usually volunteers) general managers and coordinators, coaches, fundraisers or other facility managers maintenance and cleaners contracted professionals (paid or volunteers)

37 Who supports facility partnerships? Ko wai ka tautoko i te tūhononga wāhi urunga

the relationship The council family includes a range of skilled and experienced staff, each of whom helps to support facility partnerships in different ways. No one group of staff can provide quality support and advice on their own – we need everyone on board to do this well.

Our staff Land, building & asset staff Ā mātou kaimahi e.g. lease advisors, maintenance staff Customer service staff and contractors e.g. Call centre & Specialist staff service centre staff e.g. arts and culture advisors, sport Facility managers, & recreation advisors, librarians, partnership managers navigators, heritage advisors & other key staff Trust boards, Iwi & hapū directors, management Coaches, tutors, committees community users Working directly & volunteers with partners

Locally focused advisors Contracted e.g. local board staff, local community Supporting frontline staff professionals advisors, council iwi mediators, brokers Our partners & elected members Ō mātou hoa tūhonohono

Communications & engagement advisors Infrastructure, planning Policy, strategy & Legal, risk & & consents advisors research advisors financial advisors Our elected members Ā mātou mema pōti Staff involvement includes:

Giving technical, Having early Helping to prepare and Holding relationships Evaluating and financial and legal advice Helping to design, Helping to build conversations with assess facility partnership with partners and reporting on the to partners and decision- plan, cost, consent and the capacity and potential partners, co- proposals and plans, and managing funding benefits delivered makers, helping partners project manage facility capability of partners, investors and council making recommendations to navigate council and lease agree- through facility decision-makers partnership building ments once a facility when needed to decision-makers processes and projects partnerships systems is operational

38 Our roles and responsibilities Lead relationship broker Ā mātou mahi me ā mātou kawenga Te takawaenga tūhononga matua the relationship

The council is a large and complex organisation, We know that the council’s large size and with many different roles it must play simultaneously. complexity as an organisation can make us These include regulatory / kaitiaki roles, and empowering or support difficult for partners to build relationships with, roles. These roles may sometimes be in tension, or even direct conflict. so every facility partnership will be allocated a We can’t avoid this complexity, as each function and role we play lead relationship broker within the council. is an important part of serving Auckland. But there will be limits to what we can do through partnerships, what we can do with or for our partners, and what our partners can do themselves. This person:

In particular, the council must always: • Keep people safe • Ensure we and others comply with the law, and are seen to do so • Act in ways that are consistent with our duties as a local Will establish a Will be the first authority and kaitiaki, and in alignment with our own policies relationship with port of call for the and plans the key people in partner(s), elected the partner members and • Balance competing interests among communities of place, organisations other council staff interest and identity interacting with the partnership • Set out to allocate scarce resources fairly, transparently, and for maximum benefit. Is responsible for To help manage any tension between our roles we will: assisting the partner(s) to • Be upfront: we will acknowledge, discuss and actively manage navigate council tensions as they arise, accepting that in some cases finding processes and common ground will not be possible systems, and Will maintain an accessing and/or May change over • Be coordinated: where our different roles are in tension up-to-date file of coordinating advice the lifecycle of the internally, we will try to ensure this is flagged early and resolved, key information from the ‘virtual partnership, but about the facility team’ of specialist where this needs before (further) commitments are made or work progressed partnership and technical staff to happen the • Champion where we can’t act: sometimes, we may not be able involved in each transition will be facility partnership carefully managed to partner ourselves, but if we strongly support the kaupapa, we can help bring together others who can. 39 5. The agreement Te whakaaetanga Our ethical practice principles the agreement Ā mātou mātāpono tikanga matatika Clarifying and formally documenting the Auckland Council will run an ethical, prudent legal arrangements relating to the facility and inclusive facility partnerships programme. and the partnership is an important way to protect the short, medium and long-term This means we will: interests of all parties. 1 2 3

Facility partnerships are some of the most complex arrange- Be accountable for Only take justifiable Seek prior legal ments we enter into, because they cover physical assets, how we invest public risks: we will balance advice and formally money in facility our desire to support document all facility often big investments and usually long periods of time partnerships and how high-potential, com- partnership commit- we show the return on munity-led innovation, ments and agree- – sometimes generations. The financial stakes are higher, that investment, and with our need to pru- ments (and any the potential risks are greater, the considerations are more require our partners dently invest public subsequent material to do the same. funds and protect changes), to ensure technical, and every choice carries an opportunity cost. the council and the clarity for all parties. community from risk. The graphic on the following page identifies a number of aspects relating to the legal side of facility partnerships, which underpin the formal arrangements Auckland Council can make with our partners and protect everyone’s interests. 4 5 6

As no two facility partnerships are the same, the specific Act fairly and trans- Be inclusive in our Have a culture of legal considerations will vary between projects. Staff will parently: we will be intent, our processes seeking feedback, open and honest, and and requirements, our listening, reflecting and consult with our in-house legal team and ensure partners and aim to balance the decisions and our continuously seeking decision-makers understand the potential legal implications of needs and interests of behaviours. We will to improve, and we everyone involved in work with partners will encourage our individual proposals from Stage 2 onwards. All parties must or impacted by facility who value inclusion partners to do the fully investigate and resolve the legal dimensions of a facility partnerships. and diversity. same. partnership to their mutual satisfaction before entering any formal agreement at Stages 3 or 4.

40 Legal considerations for facility partnerships

the agreement Te aronui ki te ture mō ngā tūhononga wāhi urunga Leasing council property Partners establishing a facility in a council building will require a commercial lease, community lease or license to occupy the property. Lease negotiations will include expectations and Organisational types arrangements for property Auckland Council has specific maintenance, renewals and rules and practices around improvements, and any sub- partnering with some types of letting or co-tenancy organisation – e.g. facility trusts, arrangements. Leasing council land social enterprises, other types A partner-owned facility built of commercial organisation on council land will require a and schools. ground lease, with provisions made for renewing the lease, vesting assets to council or remediating the land at the end of the lease. Ownership, governance and management structures The council, partner(s) and co- investor(s) will need to agree and document arrangements for the Managing risk and disputes funding, ownership, governance and operation of the facility. This will The council and partners will include negotiating levels of partner need to identify a range of and community access, identifying possible risks early on, monitor and mitigating conflicts of interest, these as the partnership proposal agreeing when and how the partner- progresses, and actively manage ship will be wound up, and if there them once the facility becomes will be options for early exit. operational. Partnership facilities will need to be fully insured and legally compliant for public use, with clear operational policies, clearly defined liability and a Financial obligations process for managing disputes. Many facility partnerships will involve council grants or contracts for service as part of their funding model. These may be paid out in advance, in arrears, or as the project hits key Staff will work with potential partners to establish and resolve the milestones. Different types of relevant legal considerations in their specific case, beginning with a payments have different tax high level conversation at Stage 1, with further advice sought at Stages obligations and accounting 3 and 4. Council will work with partners to develop a customised requirements. partnership agreement at Stage 5. 41 6. The facility Te wāhi urunga The land the facility Te whenua Land and building considerations All facility partnerships have land considerations – they will sit Te aronui ki te whenua me ngā whare o runga on a specific site that is owned by someone, next to other properties, reached from a particular street, located in a neighbourhood, precinct, As an experienced facility provider, we understand how much is suburb and local board area, in the rohe (customary territory) of one involved in planning, designing, constructing, running and looking or more mana whenua. after built assets that will do the job they’re built for, year in, year out. The area may have specific cultural, heritage or geotechnical features or This can be complex, specialised and expensive work. In entering significance, and it will grow and develop in accordance with its zoning facility partnerships, the council and partners will need to navigate under the Unitary Plan. Facilities will also take their place in a natural both land considerations. As no two facility partnerships are the ecosystem – with its own character, behaviour, patterns and vulnerabilities. same, the specific considerations will vary between projects. Expert help with facility planning The building The council employs a large number of expert technical staff across Te wāhi urunga planning, facility development and operations. These staff will be responsible for assessing the land and building aspects of facility A facility’s design, configuration, fit-out and operation can be the partnership proposals as they pass through the facility partnership difference between a successful facility, an under-used facility, and lifecycle (see p13), particularly during Stages 3 through 6. a failed facility. Our experts will advise colleagues and decision-makers on any technical If building new, the planning, design and construction are critical and regulatory matters, including land considerations, location and site phases for the project; they can be costly, complex and involve multiple considerations, facility purpose and use factors, design factors, building decisions and trade-offs. Partners will require the support of qualified regulations, construction, facility operation, and any ongoing asset professionals. management responsibilities assumed by the council. A full list is provided If developing, re-purposing or activating an existing building, it may on the next page. need renovation, new fittings or equipment, or improvements to come The provision of technical advice directly to our partners is an important up to specification for public use. It may have special cultural or heritage way the council can support facility partnerships, and invest in successful significance, with added protection under the Unitary Plan. It may have partnerships. Where prospective partners need the council’s technical existing tenants, or the potential to sub-let or bring in co-tenants. advice and support, we will build the resource for any upfront and All facilities need plans in place to manage regular community ongoing assistance into the cost of the partnership proposal. access and use, comply with leases and funding agreements, Although many of these matters need to be addressed separately within and the ongoing management, maintenance and renewal the council, the Lead Relationship Broker will support partners and of the asset to keep it safe and in good condition. prospective partners to navigate these processes. (See p38 for more about the council’s various roles and responsibilities, and the Lead Relationship Broker.) 42 Te wāhi urunga 2 Location / site considerations 3 Facility purpose and use 6. The facility • Co-location with other community infrastructure factors the facility • Site position – e.g. street frontage, visibility, proximity to others on site • Overall floor area Land and building considerations • Access and parking, proximity to public transport • Layout and configuration • Local impacts (near neighbours, noise, restricted activities) • Reception, office space, activity areas, Te aronui ki te whenua me ngā whare o runga • Suitability for commercial activities (if planned) kitchen, storage • Impact of new facility on other users or tenants of the site • Gender inclusive toilets and changing facilities • Fixed vs. flexible spaces • Fixtures and fittings 1 Land considerations • Plant and equipment • Land classification / status and statutory implications • Leases, tenancies and community access agreements • Landowner permissions • Sites of significance to Māori • Development restrictions (e.g. parkland, protected trees, viewshafts, height) 7 • Coastal inundation, susceptibility to flooding and other Community House Facility operation climactic considerations • Managing governors (e.g. trustees), • Ecological considerations / impacts facility staff (e.g. managers, tutors) • Current condition and suitability of the land for a facility and volunteers (e.g. coaches) (e.g. contours, contamination) • Commercial operations (e.g. cafes, pro shops, social enterprise • Infrastructure and services (utilities, wastewater) opportunities) • Managing bookings, hireage and memberships • Fees and charges (members and public) • Financial management (e.g. accounts, wages, cash handling) • Building access and security • Maintenance and renewals • Cleaning and waste management • Promotion and advertising • Monitoring and reporting to council and other investors

4 Design factors • Quality design on a budget • Materials and finishes (cost, aesthetics and durability) • Building footprint and relationship with the surrounding 5 Building regulations 6 Construction site and area • Seismic (earthquake) strengthening • Resource & Building consents • Māori design principles • Asbestos removal • Earthworks • Universal design principles (accessibility) • Building Warrant of Fitness • Choosing and managing suppliers • Sustainable design and energy efficiency • Fire safety • Project and site management Contact us • Understanding, preserving and capitalising • Health and safety • Contingencies for a large print on heritage features version of this • Crime prevention, security and access • Integrated public art, community art page • Branding, naming, attribution and signage • Landscaping and ongoing site maintenance 43 44