The Hauraki Rail Trail Charitable Trust Report - May 2018 The following report outlines the success to date on the deliverables against the action plan provided within the 2017-2018 Business Plan. The HaurakI Rail Trail Charitable Trust has worked extremely hard at all levels in the organisation to provide a positive change of the culture of the Hauraki Rail Trail.

1. Brand/Marketing and Communication

Key Outcome: To grow awareness of the Hauraki Rail Trail brand and to increase the numbers of users (domestic and international) across the length of the Hauraki Rail Trail.

Specific Actions Task Specific Progress Strategic Partner 1. NZCT AGM development 2. National and Regional Cycle Trail workshops Ongoing and active 3. Wider collaboration with key engagement industry partners. Brand review 1. Brand development New brand in place and being 2. Brand guidelines rolled out across all 3. Trademarking marketing material and trail collateral Develop a marketing and 1. General Event specific comms communications strategy 2. Specific Events, i.e. Official delivered Opening/track extension Marketing strategy in development with new resource coming onboard July 2018 Identify business 1. Support new business Supporting council Econ Dev opportunities development teams Working with industry to develop packages to grow visitor nights • Grabone • Treatme Support product 2. Support development of at Jollybikes tour package and development least 2 commissionable Trade Waihi Gold Experience products presented at TRENZ 2018 by Destination Coromandel Promote all legs of the Rail 1. Develop Trail Collateral Ongoing Trail a. Website development Achieved b. Track maps Photoshoot Section c. Location maps A/Section D d. Brochures e. Design costs f. Prospectus

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g. Tear off maps Encourage events 1. Destination Coromandel Promotion on website 2. Hamilton-Waikato specific area on 3. Website promotion www.haurakirailtrail.co.nz More work required. Communicate research 1. Official partner programme More work required. data to Trail partners 2. Website/social media Newsletter in development channels 3. Via newsletter Produce a range of HRT 1. Marketing/Retail product Merchandise on sale specific retail product to development to sell through throughout network support the development info centres and official of the Rail Trail partners/web Concession Programme 1. All cycle hire and touring Concession programme now businesses with a concession replaced by Official Partner 2. All businesses that use the Programme HRT logo with a concession Official Partner 1. 30 Official Partners 43 Official Partners Programme 2. 4 workshops 5 Sponsored Partners 3. 3 cluster groups Cluster Groups to be 4. 1 industry rep on HRT developed Advisory board 2 industry reps on HRT Advisory Groups

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2. Trust Administration and Management

Key Outcome: To establish a clear set of operating protocols that raises the professionalism of the Trust, while giving confidence to the Councils to continue supporting the Trust and Rail Trail development.

Specific Actions Task Specific Progress 3. Prioritise and allocate 1. Regularly review Trust • Meetings have moved to actions meeting frequency quarterly in 2018 after a busy 2. Develop an action plan period in 2017 as confidence and report against it increased. • Action plan is contained in business plans, for both 2017- 2018 and approved by settlor councils. Set up of Trail 1. Financial Controls and • Financial controls reviewed documentation systems spending authorities • FY2017 Audit gave a clean bill of and processes 2. Fraud and Sensitive health Expenditure • Full Standard Operational 3. Operational Procedures manual in 4. Emergency Plans development 4. Major project 1. Develop specific plans • $6.8m extension project management and tasks with delegated implementation plan in RASCI for major project development tasks 5. Prepare and manage 1. Prepare annual plans • 1 year budget in play, and annual plans and budgets and budgets. reviewed in Feb 2018 by HRTCT 2. Incorporate feedback • See attached YTD March 2018 from councils 3. Finalise at August AGM

Prepare and manage Long 1. Prepare Long Term Plans • 3 year budgets and plans Term Plans and budgets and budgets developed and approved by Councils

6. Information Management 1. Establish and maintain • Ongoing information management systems 2. Ensure security of confidential documentation 3. Ensure all electronic documentation is regularly backed-up and secure

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7. Reporting Meet all reporting • Ongoing and current requirements for 1. Audit NZ 2. Settlor Councils 3. Charities Office 4. NZCT

Establish an ongoing 1. Identify list of key • Ongoing review process for Trail documentation including • Trust Deed under review, will documentation a. Trust Deed be with councils in July 2018 for 8. b. Financial documents feedback c. Management • Changed Accountancy services Agreement(s) Jan 2018 d. Underwriting • Management agreement signed Agreement • Underwriting agreement signed e. CCO Exemptions • CCO exemptions in place until f. Asset Register 2020 g. Asset Maintenance • Asset Register for Trust assets h. HSE and Emergency in place Plans • Trail maintenance sitting with i. NZCT HDC • HSE and Emergency Plans require review • 9. Recognition of Success 1. Identify items at Trust • Ongoing and Stakeholder meetings and communicate accordingly via newsletters, websites and/ or press releases.

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3. Trail Operation

Key Outcomes: Maintenance of the Rail Trail to a grade one standard as outlined in the NZCT Nga Haerenga Cycle Trail Design Guide

Specific Actions Task Specific Progress As per the management 1. The Rail Trail is maintained to grade one • Achieved agreement variation standard by advice dated 30 August a. Biannual inspections of no less • New asset 2016 and in conjunction than 10km of the trail management with the Asset managers, b. Develop condition assessment software to be the responsibility for Asset criteria and methodology purchased by Management currently 2. Implement and maintain a Health and Trust June sits with HDC. Safety Plan for routine maintenance 2018. work 3. Implement and maintain an Asset Management plan for the Rail Trail assets 4. Prepare annual and forward routine maintenance budgets 5. Undertake track grading inspections with NZCT as and when required 6. Manage and maintain the Kiwirail lease in accordance with the requirements of the lease agreement dated April 2011 and any updates or amendments thereof 7. Manage and maintain all leases with private landowners in accordance with the requirements of each individual lease agreement 8. Maintain the resource consents for the Rail Trail operation and adhere to the resource consent requirements regarding the physical assets 9. Communicate with adjacent landowners as and when required in relation to routine maintenance works 10. Managing the Rail Trail during weather events. This includes closing the Rail Trail as required and reopening following inspections and any routine emergency repair works required to make the track safe 11. Responding to any service requests relating to track safety or routine

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maintenance

Prepare and submit the Significant improvement in rating from 67% • Due to be Trail Warrant of Fitness as (May 2017) completed May required by NZCT 2018 Implement the signage 1. Ensure signage is 100% consistent signage • $60,000 of strategy over the entire strategy signage being length of the Rail Trail 2. Raise funds for implementation of signage. installed on trail by July 2018 • Funds raised through partnerships and MBIE sources Official opening of 1. Oversee and support the official opening of • Opened Pūkorokoro-Miranda to Pūkorokoro-Miranda to Kopu section of the November 2018 Kopu section of the Rail Rail Trail prior to Labour weekend 2017 • Delayed due to Trail weather event Support the commitment 1. Business plan development • Funding to full build of the Rail 2. Funding applications application Trail from Kaiaua to successful Matamata • Project Implementation Plan in development

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4. Quality Assurance and Data Collection

Key Outcomes: • Accurate and timely trail usage data. • Valid visitor survey data providing information on the quality of visitor experience. • To ensure compliance by the Rail Trail of critical standards such as brand usage and membership criteria.

Specific Actions Task Specific Outcomes Maintenance 1. Monitor Social media feedback • Ongoing and report known issues to the • Service Department 2. Join the inspection rides of the Rail Trail 3. Take the lead on funding applications to the MGR Fund NZCT Membership 1. Ensure all reporting and • Ongoing and up to date membership requirements are • Work needed on met: newsletters a. Reporting on: b. - visitor numbers c. - regular newsletters d. - Attendance at NZCT events 2. Hosting NZCT personnel as required.

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5. Stakeholder Relationships and Communications Key Outcome: To create the Hauraki Rail Trail community of engaged businesses that support the Trust in taking the Rail Trail from good to great.

Specific Actions Task Specific Outcomes 1. Improve communications, 1. Develop a communications plan • Ongoing access to and transparency in conjunction with the Settlor of information to councils staff stakeholders at all levels 2. Create portals on the website for central document collation 2. Monthly stakeholder 1. Mailchimp on website, and • Newsletters need newsletters regular mail-outs to key development partners • Meeting scheduled with website developer May 2018 3. Manage updates (i.e. track 1. Updates through social media • Ongoing and current closures) and other partners via website/NZCT/other partners 4. Roll out the official Rail Trail 1. July 2017 then ongoing • Tranche one website completed 5. HRT Advisory Group 1. Attendance and support • Ongoing meetings 6. Chairperson to meet with 1. Strategic discussion on progress • Now in place, and Mayor/Council on a six- and future direction working well monthly basis 7. Regular progress report to 1. Provide quarterly report • Now in place CEO’s of councils after each board meeting 8. Continue to build iwi 1. Ensure kaupapa Māori • Ongoing and relationships protocols are respected and functioning relationships are fostered 9. Stakeholder database 1. Compile and maintain for • Ongoing and used variety of purpose, i.e. media, often leaseholders, businesses, etc 10. Maintain relationship with 1. Attendance at DoC initiatives • Ongoing Department of Conservation and community meetings 2. Maintain reporting on funding commitments 11. Develop and maintain 1. Attendance at NZCT partner • Ongoing relationship with NZCT workshops where appropriate network partners and MBIE, 2. Support of others in the NZTA, WRC network 12. Community group 1. Speaker at group meetings • Ongoing

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relationships 2. Support funding initiatives i.e. HELP Waihi 3. Leverage from initiatives where possible 13. Develop and enhance 1. Use information network as • Ongoing, and relationship with local referral point for booking highlighted on information centres enquiries website as main booking source 14. Enhance relationship with 1. Include in HRT advisory group • Ongoing and strong Regional Tourism 2. Support product development relationships in place Organisations (Destination Coromandel and Hamilton/Waikato Tourism

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6. Funding

Key Outcome: The Trust secures at least three major partners by the end of FY2018 and is generating over $50,000 of cash or in-kind product/services.

Specific Actions: Task Specific Outcomes 1. Corporate Sponsorship 1. Identify potential Major Partners corporate sponsors 3,000 KTD Engineering 2. Develop sponsorship 3,000 HG Leach proposals that match 2,500 Pedlars Motel client profiles 10,000 More FM 14,000 PIH (2015) Ltd

2. Establish strong credibility and 1. Manage strong brand • Successful MGR professionalism that attracts image and ensure funding applications on support from financial funding compliance behalf of TCDC, HDC partners. and HRTCT for improvements on the Rail Trail. 3. Engage the services of a funding 1. Identify targeting • Plan in place for specialist to give capability and funding needs to FY2019 as strategy capacity during its transition grow capacity and work is completed period. capability 4. Leverage off economies of scale in 1. Identify commonality • Dialogue underway purchasing products and services of products within with WRC partners that are common across the NZCT the network network. 5. Raise $1.2 million to complete the 1. Support Settlor • Successful Kaiaua to Kūporoporo/Miranda councils with grant section applications to MBIE and local politicians 6. Raise $4.8 million to construct the 1. Support Settlor • Successful Te Aroha to Matamata section of councils with grant the Rail Trail applications to MBIE and local politicians

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Financial Report The financials attached are for the period 1 July 2017 to 31 March 2018. The Trustees reviewed its budget in February 2018, and these financials are compared to that decision. Underspends in the wage and salary budgets were redirected to strategic planning, with contractors now engaged on Signage and also a Beautification (ecology) strategy. The Trust has been limited in its ability to source funding from outside funding sources until it had a clear direction on what was required to bring the entire trail length from good to great rather than adhoc applications as has occurred in the past.

Hauraki Rail Trail Charitable Trust moved its accounts to Coombes Accounts in January 2018. The significant change in the presentation of the accounts is that the codes now relate directly to the underwriting agreement signed by the three settlor councils in May 2018.

The Trust has a strong cash position at this point in time, as the underwriting from the 3 councils was sent to councils in March 2018.

It is expected that large expenditure in the form of KiwiRail Invoices, signage expenses and other strategic overheads will have occurred prior to the end of the financial year which will reduce this cash position significantly.

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