Council Controlled Organisations CCO GROUPS OF ACTIVITIES | 161

COUNCIL-CONTROLLED ORGANISATIONS CCO

To achieve specific objectives for Tauranga, the Council has established several Council- Controlled Organisations and Council Organisations. These organisations, supported by Tauranga City Council, manage Council facilities and/or deliver significant services on behalf of the Council and the Tauranga community.

These include:

• Bay Venues Limited (BVL) Would you like to know more? • Tauranga Art Gallery Trust For further information, please see the • Western Bay of Plenty Tourism and Visitors Trust, individual CCOs’ Statements of Intent and trading as Tourism Bay of Plenty (TBOP) Annual Reports available from: • Local Government Funding Agency Limited (LGFA) • www.bayvenues.co.nz • Bay of Plenty Local Authority Shared Services • www.artgallery.org.nz (BOPLASS) • www.bayofplentynz.com These organisations have each signed a Statement of • www.lgfa.co.nz Intent with Tauranga City Council. The following section outlines each of these organisations, explains what they • www.boplass.co.nz do and what they have achieved over the past year, and sets out an overview of their performance. Targets are set in Tauranga City Council’s Long Term Plan 2015- 2025 and in each CCO’s Statement of Intent. 162 | TAURANGA CITY COUNCIL ANNUAL REPORT 2015/16

BAY VENUES LIMITED (BVL)

WHAT WE DO

• Bay Venues Limited manages recreation and community facilities on behalf of Tauranga City Council. Bay Venues is 100% HIGHLIGHTS OF THE YEAR owned by TCC. 2015/16 was a very challenging year for BVL, with • Bay Venue’s mandate is to manage and aggressive growth targets to achieve, a number operate venues within the company’s of significant projects to be completed, and an portfolio providing a high standard of sport, expectation that continued improvement would be recreation, event and exhibition facilities, achieved across all their systems and processes. programmes and services to the residents As a result of initiatives put into place, BVL is now of Tauranga City and visitors to the area. providing a higher level of operational and financial • There are 23 venues in the Bay Venues performance than in previous years. network including ASB Baypark, Mount Hot • Users this past year totalled 1.853 million across the Pools, University of Waikato Adams High Bay Venues facilities. Performance Centre and Baywave, plus a number of community centres, halls and • We started the upgrade of the Mount Hot Pools (to community pools. be completed in August 2016). • We hosted the World Jetsprints Championship at ASB Baypark Stadium in January 2016. • We completed the upgrade of Clubfit Gym facilities at both Greerton and Baywave. • We hosted 64 regional/national sporting tournaments/events within our leisure, aquatic and WHAT WE’RE WORKING events facilities. TOWARDS SPOTLIGHT ON The University of Waikato Adams Centre for High Performance The official opening of the University of Waikato Adams Centre for High Performance on 28 April 2016 was A city with heart A city of great A talented and the highlight of the year. This centre has quickly been and soul spaces, places innovative city full and environments of opportunity recognised both nationally and internationally as an outstanding high performance sports training facility. GROUPS OF ACTIVITIES | 163

PERFORMANCE MEASURES BAY VENUES LIMITED (BVL)

PERFORMANCE MEASURES Status at Target by 2017 Comments 30 June 2016 Provide fit for purpose, safe facilities that support We provide facilities that have been utilised by 1.8 million users during the year, the programmes and services we run within them. offering programmes and opportunities for connecting with other community members, learning, education, wellbeing and exercise. Design and deliver programmes, services and We are continually seeking feedback from our customers on a day to day basis experiences that exceed our customers’ needs and work to ensure the programmes we offer are relevant and accessible to our and wants. community and customers. Our independent customer research surveys also provide us with an opportunity to tailor our programmes. Implement solutions and processes that make it We have implemented a new Events software system which enhances the easy for customers to engage with us. events bookings and service to clients in event planning. We are continuing to develop our online tools through our website and other social media mechanisms to make connecting with our customers easier. Achieve an organisational structure and We are continually reviewing our staffing and organisational structure. In workforce scale and capability that is integrated 2016/17 we will incorporate Global Cuisine staff into BVL to enhance our with the purpose of the business. catering operation. Have leadership and management systems that We have conducted a Management Development Programme for senior and ensure individual performance is aligned with the middle management and a staff development programme for identified staff, objectives of the organisation. to ensure our workforce has the skills and training necessary to meet the requirements of a growing and changing community. Have a culture founded on teamwork, delivering Culture is being developed through the implementation of a performance exceptional value to our customers, and management system across the company which results in a six-monthly opportunities for self-development. and annual review against individual KPIs and company-wide targets. We have quarterly staff updates communicating our performance against social, environmental, cultural and economic measures. Our adopted BVibe values are important to us. These are: • Customer Crazy • Got Ya Back • Smarten Up • Straight Up • Step Up Grow ‘commercial’ revenue by 30%. Work in progress

In progress All Business Units meeting their Annual Profit Work in progress targets.

In progress 18 ‘major events’ each year use our facilities, that We have achieved over 60 major events within three key event facilities along provide acceptable financial returns to BVL and with over 60 regional / national sporting tournaments and events. economic value to Tauranga.

Annually meet the Business Performance Targets By 2017 we aim to have achieved all performance measures set out in the set out in the Statement of Intent (SOI). current Statement of Intent. In 2015/16 we achieved 23 of the 29 performance measures, partially achieved 4 and did not achieve 2.

Partially achieved Annually meet the obligations set out in the We continue to work with TCC in achieving our obligations under our SLA and Service Level Agreement (SLA) with TCC. remain confident that we will maintain our level of service within the boundaries of the revised SLA from 2016-2018. 164 | TAURANGA CITY COUNCIL ANNUAL REPORT 2015/16

PERFORMANCE MEASURES Status at Target by 2017 Comments 30 June 2016 Successfully manage risk with particular VAULT Health & Safety Management system is used for reporting and emphasis on Health and Safety, and adherence to management of Health & Safety incidents. We have a dedicated Health & environmentally sustainable business practices. Safety staff team and a Health & Safety Board Assembly which meets, reviews and tours facilities monthly. We have exceeded our waste minimisation target of 25% at ASB Baypark this year by 31% and continue to monitor our energy consumption companywide. Effectively and efficiently manage the assets Our Asset & Project Manager has implemented an Asset Management Plan within our control. which is regularly reviewed by our Senior Leadership Team and the BVL Board.

Provide timely forecasting of short and long term These are in line with the requirements of our Asset Management Plan. renewals.

Develop a comprehensive, long term facility In collaboration with Tauranga City Council and other key organisations we strategy that identifies: are part of the steering group to review all our ‘places and spaces’ in the city with a view to developing a position on our facilities and the requirements of a - Facilities to keep growing city. - Facilities to keep and develop In progress - Facilities to divest - New facilities to be created

FINANCIAL PERFORMANCE BAY VENUES LIMITED (BVL)

FINANCIAL PERFORMANCE 2015/16 2014/15 $000’s $000’s Revenue 20,251 17,070 Expenditure 22,037 23,377 (Deficit)/Surplus (1,786) (6,307) Tax Benefit/(Expense) 171 1,686 Net Surplus/(Deficit) for year (1,615) (4,621)

INCOME DERIVED FROM COUNCIL 2015/16 2014/15 $000’s $000’s Debt Servicing Grant 520 1,451 High Performance Centre Grant 1,127 - Operational Grant 2,514 2,368 Renewal Funding Grant* 2,023 - Total Council derived income for the year 6,184 3,819

* Further Renewal Grant of $1.28m is recognised in Income in Advance. GROUPS OF ACTIVITIES | 165

TAURANGA ART GALLERY TRUST

WHAT WE DO

• The Tauranga Art Gallery Trust was established in 2005 to manage and operate the Tauranga Art Gallery, ensuring a sound HIGHLIGHTS OF THE YEAR and innovative business. The Trust is • 54,000 visitors visited the Art Gallery in the 12 months fully owned by Tauranga City Council, to 31 June 2016, with 90% visitor satisfaction and 70% and Council provides the Trust an annual describing their visit as very good or excellent. operating grant funded from rates. • In this time period the Art Gallery hosted over 20 • The Tauranga Art Gallery Trust aims to exhibitions covering a wide range of art from different deliver high quality experiences through periods. programmes, exhibitions, events and collections. • The contemporary shows provided some great highlights including the Otherworld exhibition which • The Tauranga Art Gallery Trust seeks to showcased the clever constructions of artist Peter connect art and people, create a sense of Madden, the totally engaging wildlife video works of belonging and ownership of Tauranga’s New Zealand artist Denise Batchelor and the colourful cultural institution and exhibit the finest works of New York based New Zealand artist Max works of art available with special emphasis Gimblett. on New Zealand art, both historical and contemporary. SPOTLIGHT ON Learning Experiences Outside the Classroom The Tauranga Art Gallery exceeded 9,000 Learning WHAT WE’RE WORKING Experiences Outside The Classroom (LEOTC) TOWARDS programme participants during the year. The annual target was set at 6,000 participants for 2015/16.

A city with heart A city of great and soul spaces, places and environments 166 | TAURANGA CITY COUNCIL ANNUAL REPORT 2015/16

PERFORMANCE MEASURES TAURANGA ART GALLERY TRUST

PERFORMANCE MEASURES 2015/16 Target Status Comments Work within approved budget and business plan. Tauranga Art Gallery Trust has used the 2015/16 financial year as an opportunity to refocus and refine its core purpose and strategies moving forward. The Tauranga Art Gallery Trust and new Gallery Director reviewed the gallery’s strategic focus, business plan, systems and procedures and programme. Changes were implemented after the start of the financial year to align with the organisations new goals and vision which had an impact on the budget versus actual outcomes. The operating deficit (excluding depreciation and loss on disposal of assets) for the 2015/16 financial year was $56,728. The main contributing factors were an increase in building maintenance costs, bringing staff wages up to market value and a reduction in revenue from external funding sources through grants and sponsorship. It is important to note that the gallery currently has cash reserves of $1,018,366 and fixed assets of $8,720,264. Planning and reporting requirements are met. All planning and reporting measures were met by Tauranga Art Gallery Trust in relation to our Statement of Intent and Tauranga City Council requirements.

Performance targets in the Statement of Intent The Trust achieved the majority of its performance targets as outlined in the are met. Statement of Intent. The Gallery achieved a higher than average number of exhibitions and Partially achieved installations across a broader range of media and themes in this financial year with 10 more than target. Increased engagement by schools in our LEOTC programmes with 9,438 students coming through the gallery, which was 3,438 more than our target. Visitation to the Gallery was 54,101 - 5,899 less than the target for this financial year. This was largely due to the drop in foot traffic through the city centre which reinforces the Trusts view that city revitalisation is essential for businesses based in the city centre.

FINANCIAL PERFORMANCE TAURANGA ART GALLERY TRUST

FINANCIAL PERFORMANCE 2015/16 2014/15 $000’s $000’s Revenue 1,301 1,317 Expenditure 1,511 1,333 Net Surplus/(Deficit) for year * (209) (16)

*Net Surplus includes non-cash donations totaling $3K (2015: $40K)

INCOME DERIVED FROM COUNCIL 2015/16 2014/15 $000’s $000’s Operational Grant 900 864 Sponsorship - 10 Venue Hire 9 7 Total Council derived income for the year 909 881 GROUPS OF ACTIVITIES | 167

WESTERN BAY OF PLENTY TOURISM AND VISITORS TRUST TRADING AS TOURISM BAY OF PLENTY (TBOP)

WHAT WE DO

• The Western Bay of Plenty Tourism and Visitor Trust, trading as Tourism Bay of Plenty, facilitates business, employment and economic development for the benefit of HIGHLIGHTS OF THE YEAR the residents of Tauranga City. • Engagement with local, national and international • This CCO is owned in equal shares by media has resulted in $1,059,995 in PR value Tauranga City Council and Western Bay of promoting the region for the year end June 2016. Plenty District Council (50% control each). • A focus on social media and digital capability has TCC also provides an annual operating resulted in 50% organic growth to our website, and grant and a service delivery contract to vastly increased social media activity and engagement. operate the Visitor Information Centre. Overall website traffic has increased 44%. • TBOP provides destination marketing which • Additional funding has been approved to assist with promotes the Bay of Plenty and encourages our service offering to visitors at both Willow Street and more visitors to stay longer and spend more the i-PORT and also to complete the business case for here. a new purpose-built site on Salisbury Avenue.

SPOTLIGHT ON Growing domestic and international visitor spend Through partnership marketing with Tourism New Zealand (TNZ), to market the Bay of Plenty brand to international WHAT WE’RE WORKING markets, Tourism Bay of Plenty has increased TOWARDS international visitor spend by 14.3% this past year. In addition to this, through the marketing campaign ‘Plenty for Everyone’ and partnering to promote local events, TBOP has achieved a 9.9% increase in domestic visitor spend. Length of stay has increased from 2.56 nights to 2.74 nights.

A city with heart A city of great A talented and and soul spaces, places innovative city full and environments of opportunity 168 | TAURANGA CITY COUNCIL ANNUAL REPORT 2015/16

PERFORMANCE MEASURES TOURISM BAY OF PLENTY (TBOP)

PERFORMANCE MEASURES 2015/16 Target Status Comments Work within the approved budget and business Tourism Bay of Plenty has met all budget and business plan targets. Total plan. income for the year has increased from the budget of $1,955,331 to actual of $2,042,756. This was partly offset by an increase in expenses from the budget of $2,131,652 to actual of $2,160,324. This resulted in an overall reduction of the budgeted deficit from $176,321 to $117,568 and an overall saving of $58,753. Planning and reporting requirements are met. All planning and reporting requirements have been met by Tourism Bay of Plenty in relation to our key performance measures and the requirements of Tauranga City Council, Western Bay District Council and Whakatane District Council. Strategic and business plan objectives and Tourism Bay of Plenty have met, and in many cases exceeded, our set activity performance measures are met. performance measures. Through partnership marketing with Tourism New Zealand (TNZ), to market the Bay of Plenty brand to international markets, Tourism Bay of Plenty (TBOP) has increased international visitor spend by 14.3%. Our 2015/16 target was to grow the international visitor market by 3.35%. With the marketing campaign ‘Plenty for Everyone’ and partnering to promote local events TBOP has achieved a 9.9% increase in domestic visitor spend, over double our target of 4% increased domestic visitor spend. Length of stay has increased from 2.56 nights to 2.74 nights, also exceeding our target of 2.6 nights. Tourism Bay of Plenty have also moved to a responsive digital platform with bayofplentynz.com, resulting in an over 44% increase in website traffic.

FINANCIAL PERFORMANCE TOURISM BAY OF PLENTY (TBOP)

FINANCIAL PERFORMANCE Draft Actual 2015/16 2014/15 $000’s $000’s Revenue 2,043 1,905 Expenditure 2,161 1,995 Net Surplus/(Deficit) for year (118) (90)

INCOME DERIVED FROM COUNCIL 2015/16 2014/15 $000’s $000’s Operational Grant 915 826 Service Delivery Contract 291 291 Total Council derived income for the year 1,206 1,117 GROUPS OF ACTIVITIES | 169

LOCAL GOVERNMENT FUNDING AGENCY LIMITED (LGFA)

New ZealaNd local GoverNmeNt WHAT WE DO LGFA LGFA FuNdiNG aGeNcy New ZealaNd • The Local Government Fundinglocal AgencyGoverN meNt FuNdiNG aGeNcy (LGFA) provides funding to participating HIGHLIGHTS OF THE YEAR New Zealand local authorities. • Local Government Funding Agency’s full year profit for • This CCO raises debt funding either the year ending 30 June 2016 (as per the provisional domestically or offshore. LGFA borrows accounts) was $9.55 million asNew compared ZealaNd to the funds and lends them on to local authorities local GoverNmeNt previous year of $9.20 million. at lower interest margins thanLGFA those local LGFA FuNdiNG aGeNcy authorities would pay to otherNew lenders.ZealaNd • Lending to Councils increased by $1,419 million to local GoverNmeNt $6,451 million during the year. • Tauranga City Council’s shareholdingFuNdiNG aG einN cy LGFA is 7.46%. SPOTLIGHT ON NZX inaugural bond listing Local Government Funding Agency (LGFA) bonds are now listed on NZX Debt Market. LGFA made the decision to list bonds on the NZX to provide greater access to a highly rated, liquid fixed income investment and to increase price transparency for all investors. During 2016 LGFA began issuing short dated 3-month and 6-month bills.

WHAT WE’RE WORKING TOWARDS

A talented and innovative city full of opportunity 170 | TAURANGA CITY COUNCIL ANNUAL REPORT 2015/16

PERFORMANCE MEASURES LOCAL GOVERNMENT FUNDING AGENCY LIMITED (LGFA)

PERFORMANCE MEASURES 2015/16 Target Status Comments Average cost of funds to be less than 0.50% 0.748% higher than the average cost of funds for New Zealand Government Securities. Total lending to participating local authorities $6,451 million to be $5,760 million by June 2016 (and $6,970 million by June 2017).

FINANCIAL PERFORMANCE LOCAL GOVERNMENT FUNDING AGENCY LIMITED (LGFA)

FINANCIAL PERFORMANCE Provisional Actual 2015/16 2014/15 $000’s $000’s Revenue 278,152 222,781 Expenditure 268,607 213,577 Net Surplus/(Deficit) for year 9,545 9,204

Figures above are based on unaudited accounts. GROUPS OF ACTIVITIES | 171

BAY OF PLENTY LOCAL AUTHORITY SHARED SERVICES (BOPLASS)

WHAT WE DO

• The Bay of Plenty Local Authority Shared Services (BOPLASS) was set up by the eight local authorities in the Bay of Plenty region to foster collaboration between Councils in the delivery of services particularly back-office or support services.

• BOPLASS investigates, develops and HIGHLIGHTS OF THE YEAR delivers shared back-office services and • 2015/16 has seen continued financial savings provided communications where and when that to all BOPLASS Councils through new and existing can be done more effectively for any joint procurement initiatives. combinations of some or all of the Councils. • A greater emphasis has been put into developing • The shareholding Councils are: Bay of cross-regional services over the last year with a Plenty Regional Council, Gisborne District number of initiatives established with other LASS or Council, Kawerau District Council, Opotiki councils outside of the BOPLASS region. District Council, Rotorua District Council, Taupo District Council, Tauranga City • BOPLASS has also reviewed projects outside of Council, Western Bay of Plenty District the back-of-office services, with opportunities for Council and Whakatane District Council. collaboration in solid waste services currently under review. • Tauranga City Council has an 11.11% interest in BOPLASS. SPOTLIGHT ON BOPLASS Collaboration Portal The sharing of the BOPLASS Collaboration Portal and the rapid uptake by Councils from outside of the region WHAT WE’RE WORKING has opened opportunities for greater cross-regional collaboration. BOPLASS Councils, and other Councils, TOWARDS are now able to have visibility of other Councils’ work streams and identify project partners or share information. This has directly resulted in a number of project partnerships being established and a reduction in duplication of effort.

A talented and innovative city full of opportunity 172 | TAURANGA CITY COUNCIL ANNUAL REPORT 2015/16

PERFORMANCE MEASURES BAY OF PLENTY LOCAL AUTHORITY SHARED SERVICES (BOPLASS)

PERFORMANCE MEASURES 2015/16 Target Status Comments A minimum of four new procurement initiatives Joint procurement initiatives undertaken for: investigated. Initiatives provide financial - Internal audit services savings and/or improved service levels to the - EFTPOS services participating councils. - Natural hazard insurance - Insurance loss modelling - 2015-16 aerial photography - Section 17a reviews 0.25 FTE assigned to directly developing 37% of IT Manager’s time committed directly to individual council support council’s shared service opportunities. (measured by fortnightly time sheets). Support provided to councils in development of the following services: - Inter-Council Network (ICN) Management - Collaboration Portal - Health and Safety Advisory Group - Radio Telephony strategy - GIS services - After-hours phone services (Tauranga City Council now provides this as a shared service to several BOPLASS councils) - Regionally-based data centre - Online services Shared portal providing upload and download As at 30 June 2016, 21 councils outside of the BOPLASS councils had joined capabilities to all participating BOPLASS councils the portal in the last 12 months and have licensed users with access to the is operational within 12 months. Collaboration Portal. Additional councils have subsequently joined as a result of the 2015/16 marketing. Contracts due for renewal are tested for Contracts negotiated and/or renewed for: competitiveness in the marketplace. New - Video Conferencing Maintenance and Services suppliers are awarded contracts through a - ESRI Enterprise Licensing Agreement competitive procurement process involving two - GIS software – Geocortex Essentials, X-Tools, NZAA or more vendors. - Print Media Copyright Agency (PMCA) - Media Monitoring services - Printer/Copier agreement review initiated. Affirmative feedback received from shareholding - Strategic reviews completed by the Board. councils at least annually. - Independent director reappointed. - Board structure altered to include position of independent Chair. - Board reviews of operations governance structure and performance. - 2016-17 Statement of Intent, including governance changes, accepted by all shareholding councils. At least one meeting per year. Executive-level meetings held with councils.

Performance against budgets reviewed quarterly. - Council contributions levied. Company remains financially viable. - Contributions received from activities producing savings. - Vendor rebates collected. - Monthly and quarterly performance reviewed. GROUPS OF ACTIVITIES | 173

FINANCIAL PERFORMANCE BAY OF PLENTY LOCAL AUTHORITY SHARED SERVICES (BOPLASS)

FINANCIAL PERFORMANCE 2015/16 2014/15 $000’s $000’s Revenue 1,524 1,691 Expenditure 1,535 1,689 Net Surplus/(Deficit) for year (11) 2

INCOME DERIVED FROM COUNCIL 2015/16 2014/15 $000’s $000’s Operational Contribution 273 273 Total Council derived income for the year 273 273