AGENDA

STRATEGY COMMITTEE

COUNCIL CHAMBER MEMORIAL AVENUE KAIKOHE

WEDNESDAY 22 November 2017

COMMENCING AT 01:00 PM

Committee Membership Chairperson Mayor John Carter

Councillor Ann Court Community Board Chairs Councillor Colin Kitchen Adele Gardner Councillor Dave Hookway Mike Edmonds Councillor Felicity Foy Terry Greening Councillor John Vujcich Councillor Mate Radich Councillor Sally Macauley Deputy Mayor Tania McInnes Vacant position

Document number A1913270 STRATEGY COMMITTEE MEMBERS REGISTER OF INTERESTS Responsibility (i.e. Member's Proposed Declaration of Interests Nature of Potential Interest Name Chairperson etc) Management Plan

Board Member of the Local Government Hon John Protection Board Member of the Local Government Protection Carter QSO Programme Programme

Carter Family Trust

Felicity Foy I will abstain from any debate and voting on proposed plan change items for the Far North District Plan.

I will declare a conflict of interest with any planning Director - Northland I am the director of a planning and development matters that relate to Planning & consultancy that is based in the Far North and have resource consent processing, Development two employees. and the management of the resource consents planning team. I will not enter into any contracts with Council for over $25,000 per year. I have previously contracted to Council to process resource consents as consultant planner. I am the director of this company that is the company Flick Trustee Ltd trustee of Flick Family Trust that owns properties on Weber Place and Allen Bell Drive.

Document number A1931104 Page 1 of 7

STRATEGY COMMITTEE MEMBERS REGISTER OF INTERESTS Responsibility (i.e. Member's Proposed Declaration of Interests Nature of Potential Interest Name Chairperson etc) Management Plan This company owns several dairy and beef farms, and also dwellings on these farms. The Farms and dwellings Elbury Holdings This company is directed by my parents Fiona and are located in the Far North at Kaimaumau, Bird Limited Kevin King. Road/Sandhills Rd, Wireless Road/ Puckey Road/Bell Road, the Awanui Straight, Tahuna Road/Allen Bell Drive. Foy Farms Owner and partner in Foy Farms - a farm in three titles partnership on Church Road, Kaingaroa Owner and rental manager of Foy Farms Rentals for 4 Foy Farms Rentals dwellings on Church Road, Kaingaroa This trust owns several These trusts own properties in the Far North. titles/properties at Cable Bay, Seaview Rd/State King Family Trust Highway 10 and Ahipara - Panorama Lane.

I consider the staff members at FNDC to be my friends Previous employment at FNDC 2007-16 Employed by Partner Justaplumber Taipa Felicity Foy Friends with some FNDC employees Colin Kitchen No form received Tania No form received McInnes Mate Radich No form received

John Vujcich No form received Consumer New Ann Court Board Member None Apparent Case by case basis Zealand Warren Pattison shareholder Building company. FNDC is a regulator and enforcer No FNDC Controls Limited No EM intervention in Kerikeri Irrigation Supplies my water disputes

Document number A1931104 Page 2 of 7 STRATEGY COMMITTEE MEMBERS REGISTER OF INTERESTS Responsibility (i.e. Member's Proposed Declaration of Interests Nature of Potential Interest Name Chairperson etc) Management Plan No other interest greater Top Energy Supplies my power than the publics Consumer NZ as disclosed as disclosed as disclosed District Licensing N/A N/A N/A Top Energy Consumer crossover in regulatory functions, consenting economic Declare interest and abstain Trustee Trust development and contracts such as street lighting. from voting. Ann Court Trust Private Private N/A Declare interest and abstain Waipapa Rotary Honorary member Potential community funding submitter from voting.

Property on Onekura Owner Any proposed FNDC Capital works or policychange Declare interest and abstain Road, Waipapa Shareholder which may have a direct impact(positive/adverse) from voting.

Property on Daroux Power of attorney and beneficiary Dr, Waipapa Flowers(I get flowers Ratepayer 'Thankyou' Bias/ Pre-determination? Declare to Governance occasionally) Coffee and food Ratepayers sometimes 'shout' food and beverage Bias or pre-determination Case by case Be professional, due diligence, weigh the evidence. Consider all staff my N/A Suggestion of not being impartial or pre-determined! Be thorough, thoughtful, friends considered impartial and balanced. Be fair. My husband is currently building a house for Kelvin Goode and is quoting Dr Dean Myburgh. My daughter works at Makana Café outside of school hours. My son works for Warren Baker. Warren Warren Pattison Pattinson director Building Company . FNDC is a regulator Remain at arms length Limited (Husband) Air NZ shareholder None None

Document number A1931104 Page 3 of 7 STRATEGY COMMITTEE MEMBERS REGISTER OF INTERESTS Responsibility (i.e. Member's Proposed Declaration of Interests Nature of Potential Interest Name Chairperson etc) Management Plan Warren Pattison Builder FNDC is the consent authority, regulator and enforcer. Apply arms length rules Limited Kurbside Rod and unlikely to materialise but Potential to be linked to a funding applicant and my wife Custom Club President NZ Hot Rod Association would absent myself from is on the decision making committee. (unlikely) any process as would Ann. Property on Onekura any proposed FNDC capital work in the vicinity or rural would not submit…. Owner Road, Waipapa plan change. Maybe a link to policy development. Rest on a case by case basis. worked with or for Mike Colebrook and Paid employment N/A N/A Kelvin Goode Sally Matters pertaining to health issues re Fluroide and Chairman Northland Northland District Health Board Declare a percieved conflict. Macauley freshwater as an example. Oranga Tamaraki - Ministry of Vulnerable Children- Chairman Matters pertaining to this ministry Declare a percieved conflict. Northland Community Response Forum Judicial Justice of the Visitations to Ngawha Prison Matters pertaining to Judicial Issues re Ngawha Prison Declare a percieved Interest Peace The Turner Centre FNDC Representative Observer, acknowledging FNDC financial contribution. Note FNDC partnership Providing students laptops - possible request for written Trustee Kaikohe Education Trust Declare a conflict support to funders Matters pertaining to request for written support to Executive member Kaikohe Business Association funders. Chairman Bay of Islands Arts Festival Trust Issues pertaining to the application of support funds Declare a conflict of interests

Trustee Bay of Islands Radio Marine Issues pertaining to the application of support funds Declare a conflict of interets

Secretary/Trustee Kerkeri International Piano Competition Issues pertaining to the application of support funds Declare a conflict of interests

Trustee/Director Kaikohe Community and Youth Trust Possible application of support funding Declare a conflict of interests Commercial Palmer Macauley Offices- Kerikeri and Kaikohe Infrastructural matters with FNDC Declare a conflict

Document number A1931104 Page 4 of 7 STRATEGY COMMITTEE MEMBERS REGISTER OF INTERESTS Responsibility (i.e. Member's Proposed Declaration of Interests Nature of Potential Interest Name Chairperson etc) Management Plan Private property of which there would not be any conflict. Paihia, Kerikeri, Kaikohe Peter Macauley Senior Partner Palmer Macauley (Husband) Barristers and Solicitors- Kerikeri, Kaikohe and Peter Macualey Legal matters with FNDC Mangonui Director/Trustee St John NZ Priory St John Priory Chapter Legal matters with FNDC Declare a conflict Chapter Peter Macauley- Palmer Macauley Barristers and Senior Partner Legal matters with FNDC Declare a conflict Solicitors Kaikohe, Kerikeri AND Mangonui St John NZ Priory Trust Board Writing of policies and legal matters as an example Note Interests Lions Club of Kaikohe Director Legal matters etc Note Interests Kaikohe Rugby Club Patron Legal Matters Viking Rugby Club, Life Member Legal Matters Whangarei Private Property Kerkeri, Paihia - no contents. Dave Hookway Employed as "Health Promotion Advisor- consider policies and A professional understanding of issues relating to have made personal and professional submissions on Alcohol and other proposals as presented in a drugs and alcohol. council policies Drugs" for Northern fair and balanced manner. District Health Board.

I own my own Consider policies and property at 188b Have 3 dogs and 2 cats (and quite a few chickens) Love my pets. proposals as presented in a Waipapa West Rd, fair and balanced manner. Waipapa.

Document number A1931104 Page 5 of 7 STRATEGY COMMITTEE MEMBERS REGISTER OF INTERESTS Responsibility (i.e. Member's Proposed Declaration of Interests Nature of Potential Interest Name Chairperson etc) Management Plan Mike No form received Edmonds Adele N/A - FNDC Gardner Honararian The Far North 20/20 , Trustee ICT Trust Te Ahu Charitable Trustee Trust ST Johns Kaitaia Trustee/ Committee Member Branch I know many FNDC staff members as I was an FNDC staff member from 1994- 2008. Partner of Adele N/A as Retired Gardner Terry Highly unlikely to interface Greening Family Trust Beneficiary Greening with FNDC Step aside from anyrequests Duffus Memorial Pensioner cottages with council easements over the Potential of seeking funds or decisions regarding Trust (Chairman) land requests Step aside from any requests Bay of Islands Walking Potential of seeking funds or decisions regarding Weekend Trust requests Russell 2000 Trust Trust is about to wind up. (Chairman) Russell Centennial Step aside from any requests Trust (ex-officio Manages Russell Museum Seeks funds from council or decisions regarding trustee) requests Residence at 14 Kaha Nil Nil N/A Place, Russell

Document number A1931104 Page 6 of 7 STRATEGY COMMITTEE MEMBERS REGISTER OF INTERESTS Responsibility (i.e. Member's Proposed Declaration of Interests Nature of Potential Interest Name Chairperson etc) Management Plan Terry Greening Greening Family Trust Beneficiary N/A N/A (Wife) Residence at 14 Kaha Place, Russell

Document number A1931104 Page 7 of 7 FAR NORTH DISTRICT COUNCIL STRATEGY COMMITTEE WEDNESDAY 22 NOVEMBER 2017 COMMENCING AT 01:00 PM IN THE COUNCIL CHAMBER, MEMORIAL AVE, KAIKOHE A G E N D A Item

1.0 APOLOGIES AND DECLARATIONS OF INTEREST Members need to stand aside from decision-making when a conflict arises between their role as a Member of the Committee and any private or other external interest they might have. This note is provided as a reminder to Members to review the matters on the agenda and assess and identify where they may have a pecuniary or other conflict of interest, or where there may be a perception of a conflict of interest. If a Member feels they do have a conflict of interest, they should publicly declare that at the start of the meeting or of the relevant item of business and refrain from participating in the discussion or voting on that item. If a Member thinks they may have a conflict of interest, they can seek advice from the Chief Executive Officer or the Team Leader Governance Support (preferably before the meeting). It is noted that while Members can seek advice the final decision as to whether a conflict exists rests with the Member.

2.0 CONFIRMATION OF PREVIOUS MINUTES Document number A1913272

3.0 DEPUTATIONS 1:05 pm Bob Campbell and Shirley Williams - Growth in the Far North 1:10 pm Sue Sutherland Consultancy

4.0 STRATEGIC PLANNING AND POLICY GROUP 4.1 Libraries Strategy and Service Delivery Review Document number A1931650 4.2 Inward Investment: China Document number A1929368 4.3 Infrastructure Grant Fund Funding Decisions Document number A1932400 4.4 District Plan Update Document number A1928086

5.0 CLOSE OF MEETING

Document number A1913271

Item: 2.0 Meeting: Strategy Committee - 22 November 2017 Name of item: Confirmation of Previous Minutes Author: Melissa Wood - Meeting Administrator Date of report: 12 October 2017 Document number: A1913272

Purpose of the report The minutes of the previous Corporate Committee meeting are attached to allow the Committee to confirm that the minutes are a true and correct record. Recommendation That the Committee confirm that the minutes of the meeting of the Strategy Committee held 11 October 2017 are a true and correct record.

1) Background Local Government Act 2002 Schedule 7 Section 28A states that a local authority must keep minutes of its proceedings. The minutes of these proceedings duly entered and authenticated as prescribed by a local authority are prima facie evidence of those meetings.

2) Discussion and options The minutes of the meeting are attached. Far North District Council Standing Orders Section 27.3 states that no discussion shall arise on the substance of the minutes in any succeeding meeting, except as to their correctness. Reason for the recommendation The reason for the recommendation is to confirm the minutes are a true and correct record of the previous meeting.

3) Financial implications and budgetary provision There are no financial implications or the need for budgetary provision as a result of this report.

Manager: Kate Barnes - Team Leader Governance Support Attachment 1: Strategy Committee Unconfirmed Minutes - 11 October 2017 - Document number A1921806

Document number A1913272 Page 1 of 2

Compliance schedule: Full consideration has been given to the provisions of the Local Government Act 2002 S77 in relation to decision making, in particular: 1. A Local authority must, in the course of the decision-making process, a) Seek to identify all reasonably practicable options for the achievement of the objective of a decision; and b) Assess the options in terms of their advantages and disadvantages; and c) If any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the relationship of Māori and their culture and traditions with their ancestral land, water sites, waahi tapu, valued flora and fauna and other taonga. 2. This section is subject to Section 79 - Compliance with procedures in relation to decisions.

Compliance requirement Not applicable

State the level of significance (high or Not applicable low) of the issue or proposal as determined by the Council’s Significance and Engagement Policy

State the relevant Council policies Not applicable (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.

State whether this issue or proposal has Not applicable a District wide relevance and, if not, the ways in which the appropriate Community Board’s views have been sought.

State the possible implications for Māori None and how Māori have been provided with an opportunity to contribute to decision making if this decision is significant and relates to land and/or any body of water.

Identify persons likely to be affected by or Not applicable have an interest in the matter, and how you have given consideration to their views or preferences.

State the financial implications and where There are no financial implications or the budgetary provisions have been made to need for budgetary provision arising from support this decision. this report.

Chief Financial Officer review. The Chief Financial Officer has not reviewed this report.

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UNCONFIRMED

MINUTES OF THE MEETING OF THE STRATEGY COMMITTEE HELD IN THE COUNCIL CHAMBER, MEMORIAL AVENUE, KAIKOHE ON WEDNESDAY 11 OCTOBER 2017 COMMENCING AT 1:02 PM PRESENT Mayor John Carter Chairperson Members Deputy Mayor McInnes Councillor John Vujcich Councillor Colin Kitchen Councillor Ann Court Councillor Sally Macauley Councillor Dave Hookway Councillor Mate Radich Councillor Mike Edmonds Chairperson Kaikohe-Hokianga Community Board Terry Greening Chairperson Bay of Islands-Whangaroa Community Board

Video Conference Felicity Foy Councillor Adele Gardner Chairperson Te Hiku Community Board

STAFF PRESENT Shaun Clarke Chief Executive Officer Bill Lee General Manager Strategic Planning and Policy Group (Acting) Dean Myburgh General Manager District Services Greg Wilson Manager - District Planning Roger Ackers Manager - Strategy Development Vicki Begbie Manager - Business Development Darren Edwards Chief Information Officer Sheryl Gavin Manager - Corporate Planning and Development Emma Pilkington Senior Policy Advisor Kate Barnes Team Leader - Governance Support Leslie Trussler Policy Advisor Melissa Wood Meetings Administrator Aisha Huriwai Meetings Administrator The Committee noted that the election of Councillor Willow-Jean Prime had resulted in the role of chair of the committee being vacant. His Worship The Mayor advised the Committee that he had exercised his powers under s41A of the Local Government Act 2002, and appointed himself Chairperson. 1.0 DEPUTATION Leonie Exel, Victor Bokulic, Kaye Vezey and Jill Northcote, representatives from the Bay of Islands Watchdogs group spoke to the report agenda item 4.1 refers. 2.0 STRATEGIC PLANNING AND POLICY GROUP 2.1. Progress Update - Draft Dog Control Bylaw and Dog Policy 2017 Agenda item 4.1, document number A1901025, pages 7-70 refers. Resolved His Worship The Mayor/Hookway a) That the report entitled draft dog control bylaw and policy 2017 be left to lie on the table. b) That Terry Greening, Elected Members and staff organise a workshop on the draft dog control bylaw and dog policy with Community Representatives. c) Post the workshop/s, staff to prepare a report on next steps for council. Carried

Document number A1921806 Page 1 of 3 UNCONFIRMED Strategy Committee Meeting 11 October 2017 The meeting was adjourned at 12:46 pm and resumed at 12:47 pm. 3.0 CONFIRMATION OF PREVIOUS MINUTES Agenda item 3.0 refers, document number A1913186, pages 1-5 refers. Resolved Vujcich/Hookway That the Committee confirm the minutes of the Strategy Committee meeting held 30 August 2017 as a true and correct record. Carried 4.0 APOLOGIES AND DECLARATIONS OF INTEREST Agenda item 1.0 refers. There were no apologies or declarations of interest. 5.0 STRATEGIC PLANNING AND POLICY GROUP (continued) 5.1. Proposed Trade Waste Bylaw Consultation Agenda item 4.2, document number A1910067, pages 71-163 refers. Reason for the resolution Resolved His Worship The Mayor/Hookway a) That the report entitled “Proposed Trade Waste Bylaw Consultation” be left to lie on the table. b) And that Council staff organise workshop (s) with elected members and community representatives. c) And that a subsequent report be brought back to the Strategy Committee. Carried 5.2. Proposed Wastewater Drainage Bylaw Consultation Agenda item 4.3, document number A1912639, pages 165-226 refers. Reason for the resolution Resolved His Worship The Mayor/Hookway a) That the report entitled “Proposed Wastewater Drainage Bylaw Consultation” be left to lie on the table. b) And that Council staff organise workshop(s) with elected members and community representatives. c) And that a subsequent report be brought back to the Strategy Committee. Carried 5.3. Appointment to fill the Vacant Position on the District Plan Review Elected Members Reference Group Agenda number 4.4, document number A1912752, pages 227 - 229 refers. Resolved His Worship The Mayor/Vujcich a) That the Strategy Committee recommend to Council that Councillor Kitchen is appointed to the District Plan Review Elected Members Reference Group vacant position. Resolved His Worship The Mayor/Vujcich

Document number A1921806 Page 2 of 3 UNCONFIRMED Strategy Committee Meeting 11 October 2017 b) That the Strategy Committee recommend to Council that Deputy Mayor McInnes is appointed to the District Plan Review Elected Members Reference Group vacant position created by the resignation of Councillor Prime. Carried 5.4. District Plan Update Agenda number 4.5, document number A1911680, pages 231 - 238 refers. Resolved Deputy Mayor McInnes/Vujcich That the Strategy Committee receive the report entitled “District Plan Update” dated 14 September 2017. Carried 5.5. Proposed Regional Plan for Northland Agenda number 4.6, document number A1913596, pages 239 - 277 refers. Resolved Court/Macauley That the Strategy Committee recommends that Council a) endorses the attached draft Far North District Council submission to the Proposed Regional Plan for Northland. b) staff work with Whangarei District Council and Kaipara District Council to ensure regional consistency. c) staff consider any new information and any feedback from the Strategy Committee and update the draft submission for endorsement at Council 26 October 2017. Carried 5.6. Progress Update Libraries Strategy and Service Delivery Review Agenda number 4.7, document number A1913596, pages 279 - 286 refers. Resolved Deputy Mayor McInnes/Hookway That the Strategy Committee receive the report “Progress Update - Libraries Strategy and Service Delivery Review” dated 21 September 2017. Carried 6.0 CLOSE OF MEETING The meeting closed at 2:27 pm.

Chairperson ____/____/____

Document number A1921806 Page 3 of 3

Item: 4.1 Meeting: Strategy Committee - 30 November 2017 Name of item: Libraries Strategy and Service Delivery Review Author: Vicki Begbie - Manager Business Development Date of report: 02 November 2017 Document number: A1931650

Purpose of the report The purpose of this is to present to the Strategy Committee the Far North Library Strategy and Service Delivery Review. Executive summary The report will cover: • The Libraries Service Delivery Review, findings, opportunities and preferred service delivery model • The Far North District Libraries Strategy • The investment and financial implications to implement the strategy over the term of the 2018-2028 Long Term Plan Recommendation That the Strategy Committee recommends to Council: a) the adoption of the far north district libraries service delivery review b) the adoption of the far north district libraries strategy c) the inclusion of the financial investment to implement the strategy is included in the 2018-2028 draft long term plan

1) Background Council operates six public libraries and supports four community libraries throughout the District. Council’s vision for library services is to contribute the social, cultural, and economic wellbeing of people in the Far North District by: • Providing leisure and learning opportunities with facilities and services that are accessible and that meet the needs of the community • Providing best practice library and information services guided by the Library Information Association of New Zealand Aotearoa (LIANZA) standards for public libraries • Providing responsive, affordable and sustainable library information services for our communities The development of the Far North District Library Strategy and associated service delivery review, aim to: • Develop the District’s libraries to provide services that meet the needs of the community – technological advancements, community spaces, learning and education and taking library and information services to the community

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• Sustainable cost effective and efficient delivery model • Staged approach to strategic investment and delivery to the community Sue Sutherland and Associates have been engaged to lead and develop the Library Strategy and undertake the Service Delivery Review. Elected Member Library Strategy Input An Elected Member workshop was held on the 13 July 2017. The purpose of the workshop was to discuss the role and purpose of libraries in today’s environment, and the evolvement of libraries to meet the particular needs of the Far North. The discussion focused on: • Far North community needs and its profile – diverse communities, geographical spread, literacy levels, education levels balanced by wealth, tourism and entrepreneurship • Collaboration and partnership currently in place, and future possibilities • Opportunities for the future – iwi, schools, literacy providers, Youth Council • Challenges – level of investment, affordability, profile of libraries, strong leadership • Clear compelling vision of the future and direction for the Districts libraries The Strategy Committee was updated of the progress being made to the Libraries Strategy and Service Delivery Review at its meeting on the 11 October 2017. At the time of writing, a presentation is scheduled to be made to elected members at a 2018-2028 Long Term Plan workshop on 7 November 2017. This will be a presentation of the strategy, the three areas of focus, the desired outcomes to be achieved from the strategy and the financial investment.

2) Discussion and options Service Delivery Review The service delivery was undertaken in three phases; 1. Review of the current service delivery of library services 2. Analysis of the findings of the review 3. Service delivery options analysis and recommendation for the delivery of library services Review of the current library services The review of current library services covered; • The demographics and geography of the district, the districts priorities and that future library service delivery models and strategy need to work within the priorities and financial envelope set by Council. • Benchmarking against three comparative Councils; Selwyn, Tasman and Thames-Coromandel was also undertaken. • An analysis of library users, membership and book loans, age breakdown visits and on-line use • Collections and resources, collection turnover and investment made in collection. • Digital and IT services, self-check-out and security technologies • Buildings and library spaces; Procter, Te Ahu, Kaeo, Kawakawa, Paihia and Kaikohe in terms of the size of the catchments each library services, the age, uses and the condition of the buildings

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• Library programmes, events and outreach to the community • The promotion and marketing of the Districts libraries • Staffing of the Districts libraries in terms of: capacity, culture, training and development, benchmarking of staff numbers and volunteers • Financial investment, revenue and staff costs and expenditure. The executive summary in the attached Library Service Delivery Review report sets out the key findings for each of the above areas. Analysis and recommendations An analysis of the current service delivery was undertaken, and recommendations provided. The recommendations have been evaluated and prioritised for inclusion into the strategy and the draft 2018-2028 LTP The key recommendations are summarised as:

Current Service Recommendations Prioritisation in Review Area Strategy and draft 2018-2028 LTP Library Users Investigate collaborating with Kaipara and 2021-2022 Whangarei to provide “open boarders” for library users

Collections and Continue to invest in building the collection 2018-2028 resources of e-books and e-publications

Digital and IT Evaluate best option for delivering a cost 2022-2023 Services effective library management system that onwards provides a fully integrated discovery

services and is an outsourced solution

Plan for a move to RFID within the next 3 years 2023 onwards Buildings and spaces Plan and implement a makeover of the 2018-2019 Kaikohe Library as a first priority to reduce

the amount of shelving and provide more space for people based activities Plan and implement a refurbishment of 2019-2021 Procter Library within the next 2-4 years Programmes and Extend the reach of the library services to 2019 onwards Outreach underserved areas by establishing an outreach van to take resources and technology to schools, marae and other community venues Staff Appoint leadership role that will be 2018 onwards responsible for ensuring the new strategy is

delivered and work as one library service 2018 onwards Developing part-time roles with existing staff that can provide leadership and co-

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ordination across the library service

Finance Develop a ten year fiscal plan for 2017-2018 investment once the new library strategy is adopted

There are further recommendations discussed in the report that will be prioritised and developed into a programme of work that will be implemented over several years. Service Delivery Review - Options and Recommendation The service delivery review was undertaken to assess the most efficient and effective delivery mechanism based on the information, findings, analysis and recommendations of the current service delivery. Assessment criteria, both financial and non-financial were developed from the strategic direction of council, the 2018-2028 financial envelope and the findings of the current libraries service delivery that requires improvement. The assessment criteria and weighting used to evaluate the service delivery models stated under s17a of the Local Government Act are summarised as:

Service Delivery Assessment Criteria Weighting

Financial Benefits

Establishment Costs – cost of changing and setting up a 8% new delivery model

Effectiveness of operating costs – savings and /or 12% additional costs

Non-Financial Benefits

Customer Impact – service quality, meets customer needs 20%

Community Impact – Level of public interest, local 10% knowledge, participation for un-serviced areas

Libraries staff – recruitment, retention, staff development, 10% increasing skill levels

Strategy – Ease of implementation 20%

Technology and innovation – Opportunities to leverage 10% /utilise new technologies

Partnership opportunities – benefits of scale 10%

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The current service delivery model, with governance and funding by FNDC was evaluated as the best option, in terms of delivering the outcomes and services Council requires of its libraries. Whilst there is no establishment cost with this option, there will be investment to enable the delivery of the strategy and the recommendations from the review. In the longer term, Council may wish to consider a joint/shared arrangement i.e. a council controlled organisation (CCO), with its own board with governance and funding retained by the contributing Councils. In the longer term, this may be an option to explore once FNDC has made the changes as a result of the review and improvements needed enable the implementation of the strategy. The review recommends the existing service delivery model is retained in the short term. The recommendations from the review are implemented to build a strong foundation in terms of technology, staff capacity and capability and re-focused library services over a staged ten year period from 2018.

Library Strategy The Far North District Libraries Strategy is based on information from the comprehensive service delivery review and assessment of trends, challenges and opportunities that the Districts libraries can provide. The strategy strikes a balance between affordability and service provision, recognising that partnership, alliances and community engagement are the primary mechanisms to make the objectives in the strategy achievable. The strategy development with the four key concepts of future libraries, together with the views and ideas from elected members, FNDC executive and officers have informed a draft library strategy framework. Those concepts were: 1. Content and stories – Library as a Storyhouse 2. Library Spaces – Community living rooms 3. Learning for living – Library Digi-shed 4. Outreach – Library everywhere The four concepts cover improving literacy levels, creating vibrant places, the digital environment and taking the library and services to the community.

Community Consultation Views, thoughts and ideas were sought from the community via a community questionnaire survey which ran for four weeks and closed on 20 September 2017. This took the form of an on-line survey, questionnaire forms readily available at Council service centres, libraries and I-sites and ratepayers that have made previous submissions to Council. The questionnaire focused on “What would encourage you to use a library more in the future”. The same four concepts as above are the basis of the questionnaire along with respondent demographics and a free form space for any other ideas that the District’s libraries could do in the future. 1,049 on-line and paper form responses were received. The results of the survey highlights that libraries spaces need to accommodate activities and socialising, offer assistance to try out new technology, have computers available for community use, and have assistance on hand to help use phones and technology. Greater web access and on-line ordering and access to paid databases were also highlighted. The results can be summarised as:

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Survey Focus Response Percentage of responses

Location of Libraries Use the Kaitaia (Te Ahu) Library 28% Used Use the Procter (Kerikeri) Library 60%

Ethnicity Identified as being New Zealanders or 72% European Identified as being Maori 13%

Libraries focus on Want a place to tell/keep community 23% reading, learning and stories people telling their Want old local content on-line 31% stories

Libraries with spaces Users wanted cafes in libraries 39% adapted to your needs – Users wanted a place to hold activities, 29% quiet, activities, events, gatherings socialising Users wanted a place to display local 44% art and culture

Users wanted events and programmes for adults 37% Users wanted events and programmes 30% for children

A hub for digital Users wanted more computers 27% technologies Users wanted more help to learn to use 31% computers, phones and tablets

Users want opportunities to try out new 33% technologies

The everywhere library Ordering via the web 43% Pick-up and drop off boxes around the 19% district for books

Access to on-line reference material 32% and paid databases i.e. Ancestry.com

Strategy Areas The initial strategy development, together with the community consultation and the need for future library services to be affordable and sustainable has led to three clear strategy and focus areas. Those areas are: 1. Servicing Communities: o Connecting Far North communities with a mobile service o Creating library zones and spaces that cater for differing needs o Well maintained fit-for-purpose facilities

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2. Learning, Literacy and identity: o Increased traditional and digital literacy o Children on the literacy ladder o More people able to read and enjoy reading o Great collections o Capture, maintain, present and promote the Far North’s identity o Access to stories of the past o People telling and recording their own stories

3. Enabling Opportunities: o Partnerships to showcase technologies o Trained staff who understand changing technology and benefits o Provision of resources to get the most from the digital world for opportunity creation and realisation o Improved job and development opportunities o Fostering creativity, innovation and entrepreneurship In order to deliver the strategy, there are three key areas that need to be developed: 1. Increased staff capability – The Library Services Team require dedicated and focused leadership to implement the strategy, and adaptable and digitally able staff with a learning culture 2. Partnerships with others – partnerships need to be developed with other literacy, learning and social service providers, consideration needs to be given to regional and national initiatives and involve local communities in the shaping of future programmes and services 3. Sustainable services – By the use of sponsorship and partners for digital developments, pilot projects, assess and roll-out if the deliver, a ten year staged implementation and accountability for the implementation of the Libraries Strategy The Far North District Libraries Strategy is attached and details the vision, strategy areas, outcomes the strategy is to deliver and the investment in personnel, leadership, partnerships, and the overarching requirement for the strategy to be affordable, sustainable and the ability to be implemented. The Strategy is also summarised on one A3 page, together with a timeline and alignment to Council’s strategic priorities and community outcomes. Reason for the recommendation The digital environment has changed the way people access information, read, socialise and do business. In order for libraries to remain relevant in today’s constantly developing digital “world”, the future libraries strategy has been developed to enable the District’s libraries to implement a programme of new technologies, enhanced library facilities, and deliver customer focused services to improve the wellbeing, learning opportunities and provide library spaces that are part of the community.

3) Financial implications and budgetary provision Current Expenditure The two previous years expenditure and the current year budget for library services is summarised below

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Far North Libraries Operating Expenditure

Actual % of total Actual % of total Budget % of total 2015-16 expenditure 2016-17 expenditure 2017-18 budget Personel Costs 957,163 32.4% 1,056,445 35.8% 1,060,611 31.5% Other operating expenses 384,357 13.0% 320,639 10.9% 444,169 13.2% Total operating expenses before: 1,341,520 45.4% 1,341,520 45.5% 1,341,520 39.8% Bad debt/Doubtful Debt 35,564 1.2% 36,071 1.2% 80,278 2.4% Allocated costs 418,496 14.2% 423,491 14.4% 680,629 20.2% Corporate Costs 632,411 21.4% 588,382 20.0% 587,569 17.4% Depreciation 515,432 17.4% 506,455 17.2% 503,509 14.9% Interest 13,557 0.5% 16,240 0.6% 13,322 0.4% Total Expenditure 2,956,980 100.0% 2,947,723 100.0% 3,370,087 100.0%

Libraries operational costs have remained relatively consistent over the last two financial years, and the 2017-18 budgets reflects the consistent approach to staffing and the delivery of services. The service delivery review report discusses personnel costs are the largest cost area for Library services at 32.4% for the 2015-16 year and 35.8% for the 2016-17 year, however compared to the other libraries benchmarked as part of the review this is a low percentage. Salaries are typically between 45-55% of total library costs, and this may indicate that staff resources may not be adequate for the size of this District.

Provisional 2018-2028 Draft Long Term Plan Budget The provisional 2018-2028 Draft Long Term Budget have been prepared on the basis of existing services and staffing levels. The future investment to enable the delivery of the Libraries Strategy is detailed in Attachment Three. The future investment is required for the short-term, the first three years of the strategy and longer term initiatives for implementation for later years of the 2018-28 ten year strategy. The proposed ten year budget allows for: • Staff development – focused leadership, upskilling and outreach programmes • Technology, self-checkout, library management systems, upgraded payment integration • Investigation into regional library facilities • Re-fresh of Kaikohe and Procter Libraries and the fit-out of the Kawakawa library • Increase in eResources The first four years of the strategy are building a solid foundation for the systems, staff capacity and capability; and focused leadership. Regional initiatives and library customer initiatives are planned to commence from year five of the strategy. The proposed ten year budget is summarised as:

Document number A1931650 Page 8 of 12

Proposed Far North Libraries Future Investment Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year7 + Investment Operation Investment 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-28 over 10 Years Staff development, specialisation and outreach 86,000 147,000 142,000 137,000 137,000 137,000 137,000 1,334,000 Technology and systems 19,000 9,000 9,000 9,000 35,400 91,900 91,900 540,900 Regional options 75,000 75,000 Library design 5,000 5,000 Depreciation 5,708 20,608 29,608 42,808 56,579 66,065 419,571 Interest 1,410 7,043 10,753 13,657 17,441 20,129 130,820 Total Operational Investment 110,000 163,118 178,651 261,361 228,865 302,920 315,094 2,505,291 Capital Technology and systems 20,000 40,000 135,000 30,000 225,000 Facilities 102,000 190,000 100,000 392,000 eResources 16,000 26,000 26,000 26,000 26,000 26,000 26,000 250,000 Total Capital Investment 118,000 236,000 126,000 66,000 161,000 56,000 26,000 867,000 Total Investment 228,000 399,118 304,651 327,361 389,865 358,920 341,094 3,372,291 Rating Impact 0.13% 0.18% 0.20% 0.29% 0.25% 0.32% 0.34% Incremental Rating Impact 0.05% 0.02% 0.09% -0.04% 0.07% 0.02%

The proposed total investment to deliver the Libraries strategy over the ten year period is: • Operational Investment $1,954,900 • Interest and Depreciation $ 550,391 • Capital Investment $ 867,000 • Total Investment $3,372,291 Capital investment is made up of: • New capital investment $ 560,100 • Renewals $ 306,900

Rating Impact The rating impact of the proposed investment (excluding the impact of interest and depreciation on capital expenditure) varies from 0.13% in the first year to 0.34% from year seven through to year ten. The proposed rating impact for the first four years of the 2018-2028 Draft Long Term Plan is:

2018-2028 Draft Long Proposed Proposed Term Plan Rating Impact Incremental change

2018-2019 0.13% 2019-2020 0.18% .05% 2020-2021 0.20% .02% 2021-2022 0.29% .09%

For the first four years of the 2018-2028 Draft Long Term Plan the proposed total expenditure combining the current service and the additional investment to implement the strategy can be summarised as:

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Proposed Far North Libraries Operating Expenditure

Proposed Proposed Proposed Proposed Budget Budget Budget Budget 2018-19 2019-20 2020-21 2021-22 Personnel Costs 1,104,218 1,104,218 1,104,218 1,104,218 Personnel Costs - Strategy Investment 86,000 147,000 142,000 137,000 Other operating expenses 515,502 561,006 561,986 627,862 Other operating expenses - Strategy Investment 24,000 9,000 9,000 84,000

Total operating expenses before 1,729,720 1,821,224 1,817,204 1,953,080 Interest and Depreciation

Inflation Adjustment The 2018-2028 Draft Long Term Plan has made provision for a proposed inflation adjustment 1.9% for operational expenditure.

Manager: Dr Dean Myburgh - General Manager District Services Group Attachment 1: Far North Libraries Service Delivery Review - Document number A1931657 Attachment 2: Far North District Libraries Strategy Document number A1931653 Attachment 3: Far North District Libraries Strategy and Timelines on a Page - Document number A1932769 Attachment 4: Proposed Financial Implications for 2018-2018 Long Term Plan - Document number A1935597

Compliance schedule: Full consideration has been given to the provisions of the Local Government Act 2002 S77 in relation to decision making, in particular: 1. A Local authority must, in the course of the decision-making process, a) Seek to identify all reasonably practicable options for the achievement of the objective of a decision; and b) Assess the options in terms of their advantages and disadvantages; and c) If any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the

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relationship of Māori and their culture and traditions with their ancestral land, water sites, waahi tapu, valued flora and fauna and other taonga. 2. This section is subject to Section 79 - Compliance with procedures in relation to decisions.

Compliance requirement Staff assessment

State the level of significance (high or The Far North Library Strategy has a low) of the issue or proposal as high level of significance, as libraries are determined by the Council’s Significance a core service of Council and also places and Engagement Policy of learning and meeting for the community that add to the overall wellbeing of the District.

State the relevant Council policies The Far North Library Strategy will be (external or internal), legislation, and/or included in the 2018 – 2028 Long Term community outcomes (as stated in the Plan for consultation with the community. LTP) that relate to this decision. Libraries add to the overall well-being of the District and centres of the local communities they service.

State whether this issue or proposal has The provision of Library services is a a District wide relevance and, if not, the District-wide function; however, there is ways in which the appropriate Community significant interest from the communities Board’s views have been sought. in which the libraries are located. Once the strategy is implemented, Community Boards will be involved in the decision making regarding the re-furbishment of libraries in each ward and the out-reach programmes of taking libraries out to the community.

State the possible implications for Māori A community survey was undertaken to and how Māori have been provided with gather the thoughts and ideas of the an opportunity to contribute to decision community. The Draft Far North making if this decision is significant and Libraries Strategy includes developing relates to land and/or any body of water. partnerships with education providers, iwi, Northland Councils.

Identify persons likely to be affected by or A Community Survey was undertaken. have an interest in the matter, and how Views and ideas were sought to feed into you have given consideration to their the Draft Library Strategy. The Strategy views or preferences. will be included in the 2018-2019 Long Term Plan for consultation on the strategy.

State the financial implications and where These are contained in the body of the budgetary provisions have been made to report and Attachment Three. support this decision.

Chief Financial Officer review. The CFO has reviewed this report.

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Document number A1931650 Page 12 of 12

Far North District Council

Library Service Delivery Review

September 2017

Sue Sutherland Consulting

Document number A1931657 Page 1 of 54 TABLE OF CONTENTS 1. EXECUTIVE SUMMARY ...... 4

1.1 KEY FINDINGS ...... 4 1.2 SECTION 17A REVIEW ...... 7 1.3 CONCLUSION ...... 7 2. INTRODUCTION ...... 8

2.1 METHODOLOGY ...... 8 2.2 REPORT LAYOUT ...... 9 2.3 ACKNOWLEDGEMENTS ...... 9 3. CONTEXT ...... 10

3.1 DEMOGRAPHICS AND GEOGRAPHY ...... 10 3.2 DISTRICT PRIORITIES ...... 11 3.3 COMMUNITY NEEDS ...... 12 Community survey ...... 12 4. CURRENT SERVICES ...... 13

4.1 OVERVIEW ...... 13 4.2 USERS ...... 15 Membership and loans ...... 15 Age breakdown of members ...... 16 Visits ...... 16 Online use ...... 17 Information services ...... 17 4.3 COLLECTIONS AND RESOURCES ...... 17 Collection turnover ...... 18 Collection expenditure ...... 19 Collection management ...... 19 Local History and Reference collections ...... 20 4.4 DIGITAL AND IT SERVICES ...... 21 Public computers ...... 21 Library systems ...... 21 Self-checkout and security technologies ...... 21 Online public catalogue ...... 21 4.5 BUILDINGS AND SPACES...... 23 Opening hours ...... 23 Size of libraries ...... 23 Procter Library, Kerikeri ...... 24 Kaitaia Library, Te Ahu ...... 25 Kaeo Library and Service Centre ...... 25 Kawakawa Library ...... 26 Paihia Library ...... 26 Kaikohe Library ...... 26 4.6 PROGRAMMES, EVENTS AND OUTREACH ...... 27 Community Libraries ...... 27 Outreach...... 29 4.7 PROMOTION AND MARKETING ...... 29 Promotion...... 29 Marketing ...... 29 4.8 STAFF ...... 30 Staff numbers ...... 30 Culture ...... 30 Training and development ...... 31 Comparison of staff numbers ...... 31 Volunteers ...... 32

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Document number A1931657 Page 2 of 54 4.9 FINANCE ...... 32 Expenditure ...... 32 Revenue ...... 33 5. ANALYSIS AND RECOMMENDATIONS ...... 34

5.1 OVERVIEW ...... 34 5.2 USERS ...... 35 5.3 COLLECTIONS AND RESOURCES ...... 36 5.4 DIGITAL AND IT SERVICES ...... 37 5.5 BUILDINGS AND SPACES...... 39 5.6 PROGRAMMES, EVENTS AND OUTREACH ...... 40 5.7 PROMOTIONS AND MARKETING ...... 41 5.8 STAFF ...... 41 5.9 FINANCE ...... 42 5.10 CONCLUSION ...... 43 6. SECTION 17A REVIEW ...... 44 APPENDICES...... 45

APPENDIX 1: LIST OF INTERVIEWEES ...... 45 APPENDIX 2: MAP OF POPULATION AREAS ...... 47 APPENDIX 3: FUTURE LIBRARIES SURVEY RESULTS ...... 48 APPENDIX 4: BASE DATA FOR THE BENCHMARK LIBRARIES ...... 50 APPENDIX 5: KŌTUI OFFER ...... 50 APPENDIX 6: LIST OF DOCUMENTS CONSULTED ...... 51 APPENDIX 7: INDICATIVE UFB ROLLOUT TIMETABLE ...... 52 APPENDIX 8: SECTION 17A RATIONALE FOR DELIVERY OPTIONS ...... 53 APPENDIX 9: SECTION 17A WEIGHTED SCORING OF SERVICE DELIVERY OPTIONS ...... 54

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Document number A1931657 Page 3 of 54 1. Executive summary

The Far North District Council engaged Sue Sutherland Consulting to review the service delivery for its Libraries, undertake a Section 17A review as required by the Local Government Act 2002 and develop a new strategy for the Library Services. This report covers the service delivery review and the Section 17A review.

The Far North has a population estimated as 60,789 in 2015 and projected to grow to 62,228 by 2043. 24.8% of the population identify as Māori only, and 50% of the total population live in the most deprived category of deprivation on the 5th quintile, largely in the west and north of the region. The population is geographically spread with a density of 7.6 people per km2 compared to the national average of 14.9. The majority of the land is rural with only three towns having a population greater than 4000 but less than 5500.

The Council provides six libraries to serve the learning, literacy and recreational needs of the District. This review documents the current services in relation to funding, management and staffing of libraries and the resources used to deliver services. We have analysed a range of library performance and financial data and compared that data with three library services of similar size and/or demographics to the Far North. Our findings have been informed by interviews and workshops with a wide range of internal and external stakeholders and desktop research into the local and regional environment in which the library service operates. A Future Libraries Survey, available online and in hard copy enabled residents to contribute their views on what they wanted from future services.

1.1 Key findings The detailed analysis and recommendations for improvement are contained in sections 4 and 5 of the report. They cover the following topics: users, collections and resources, digital and IT services, buildings and spaces, programmes and outreach, promotions and marketing, staff and finance. The key findings are summarised as follows:

 The number of registered users relative to the total population is one of the ways that libraries can measure their penetration into the community. A related measure is the circulation of materials to those users. The Far North’s registered users per capita is lower than the mean for all libraries in the benchmarking exercise but the issues per active borrower is considerably higher lending weight to the argument that because of the borrowing fee families were using only one card for multiple people. Now that there is no longer a borrowing fee, ensuring that each person has their own membership card will enable a more accurate picture of the per capita use of the library. Visits to the library, the numbers attending programmes and online use of collections and databases are also important measures of use and need accurate methods of recording.

 The collections remain the main product the libraries provide for customers. Overall the collections per capita are higher than the mean for the benchmark libraries but collection turnover is considerably lower. Possible causes are the age of the collection with collections perhaps not being weeded as well which can lead to lower turnover. The acquisition cost per capita is also lower than the mean which may confirm that there is insufficient new stock being purchased. Given that the collection vote has been reduced over the past 4 years this could be a factor. We recommend a more in-depth review of the collection to ensure that purchasing matches demand and turnover improves.

 The Far North has moved into the provision of eBooks, eAudio books and electronic magazines. They belong to two different collaborative purchasing schemes with other libraries to maximise the range of materials available for the best cost. There is a need to continue to invest in building the eCollections as this is one of the ways of providing reading and information to the more remote areas of the region. Broadband access will increase significantly over the next 5 years with the UFB rollout to a greater part of the district and more people will be able to use the resources from home or school.

 Improving the discovery and access to the online catalogue is crucial. The current Horizon information portal does not met modern standards for a simple single search box which is what users have come to expect through search engines such as Google. A discovery layer which integrates physical and digital resources means that users can click through to download eBooks or access databases without leaving the library

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Document number A1931657 Page 4 of 54 catalogue. Once the library has an improved discovery layer we recommend rejoining the National Library’s EPIC collaborative purchasing scheme to databases which provide access to full text articles, photos and videos that are not available freely on the internet, including New Zealand and Australian material.

 The Council’s strategy to outsource hosting of its servers means it is timely to review what needs to happen to provide Far North Libraries with a modern library management system (LMS) and discovery layer. The report outlines three options: move to having their current system delivered as SaaS (software as a service); going to a full RFP for new LMS and discovery service; move to Kōtui the consortium owned and managed by the National Library for the benefit of public libraries in New Zealand. 34 local authorities have taken up this offer and the Kaipara District Libraries has indicated it is joining. We recommend that an evaluation of the best option for delivering a cost effective modern LMS is a priority.

 Self-checkout technology provides benefits to both users and staff. For users it gives them the independence and privacy to issue their own material. For staff, it frees them from some of the transactional activities and allows them to use that time for more value added activities. More and more libraries are moving to RFID technology which uses a radio frequency tag to identify the individual book items rather than a barcode. The self-checkout for users is also simpler with RFID as a number of items can be issued at once, rather than singly as is required with barcode technology. RFID technologies have advantages for stock management as well. Using a hand held device, the library staff member can quickly identify items that are misplaced on the shelf, or that are missing when the system says the book is on the shelf. We recommend planning to move to RFID technologies within the next 3 years.

 Given the size of the District and the location of the main towns the six libraries provide good coverage for around 65-70% of the population, based on an estimation of the likely catchment of each library. The amount of library space in m2 per capita is lower than the mean but there are more libraries serving the population which means a lower population per service point. The size of the libraries in Kerikeri and Kaitaia are sufficient but Kaikohe is not. The 2015-2025 Long Term Plan has provision for a new combined centre for Kaikohe but given that this is likely to be at least five years away we recommend a refurbishment and revamp of Kaikohe Library be done as a priority. The Procter Library has not had any significant refurbishment since it opened 13 years ago and is looking dated and tired. We recommend planning for a major refurbishment in the next 2-4 years.

 Regular maintenance and refurbishment of Council owned libraries is not yet scheduled in the Asset Management Plan for Libraries or for Property. We recommend that the assessment reports which were identified in the 2015 Asset Management plan as needing to be commissioned be done and a regular schedule of maintenance developed. There also needs to be a provision for those libraries which are rented to receive regular updates to their interiors.

 Size of the library, location and the distance to travel are all aspects that impinge on accessibility of library services. Hours of opening are also a factor. Currently there is no Far North Library opened in the evening beyond 5pm. Given that many people work until 5.30-6.00pm the only opportunity for access to services is on a Saturday. Library hours on a Saturday are in the mornings, at a time when families may have children’s sport, or people are doing their weekend household chores. 152 of the 1049 respondents to the Future Libraries survey commented on the need for longer and/or different hours with longer week day hours (at least until 6pm), Sunday opening and longer Saturday hours being the most popular options.

 Library services to those areas which have no professional library service are in part serviced by the 4 community libraries (volunteer run) and the Broadwood Area School Community Library. These libraries vary in how they deliver their services which are primarily book and DVD lending. The Far North Libraries provide book loan collections to them all and has recently introduced a service to Rawene Library whereby reserve books are delivered and collected from the Rawene Service Centre for users of the Rawene Library. It may be there are other ways Far North Libraries could make services available to people who live in these areas. One idea is to hold ‘library ‘clinics’ to show people how to access the electronic resources and services available.

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Document number A1931657 Page 5 of 54  Providing programmes and events which support the libraries’ purposes of learning, literacy and creative recreation is part of the core service of libraries. There is a lack of coordination across the libraries and no recording of attendance. Library staff do not need to do all of the programming themselves and we encourage them to work with local experts and community volunteers to broaden the offer.

 The services the libraries provide are often invisible – even to regular users. We recommend that Far North Libraries works with the Council’s communications team to more effectively use the Council’s Facebook page and other social media outlets to promote services. There are tools available which enable the automation of messages to go out to a range of social media at the same time. The libraries do little effective marketing. We recommend trialling the use of Focus Groups using community members to understand needs so that services can be better targeted. A good starting point would be using this approach to help shape what is needed for a new library in Kaikohe and the proposed refurbishment of the library. This approach builds community involvement in shaping services.

 The staff at Far North Libraries from what we have observed are hardworking and committed. However they are thinly stretched across the six libraries. The numbers of staff per 1000 capita at 0.28 is significantly lower than the mean of the benchmark libraries and also the average for all public libraries across New Zealand which is 1.32 per 1000 capita. The staff per service point is also the lowest in the benchmark libraries. This leaves little time for planning and developing services other than the role of providing resources for reading, viewing and listening.

 One of the key challenges for staff is how to deliver to the differing community needs while at the same time ensuring that the libraries work more closely as a cohesive network. Staff identified that over time libraries have become more siloed and don’t talk/share as they used to. If the new strategy is to be achieved then strong focused leadership at the District level will be crucial, plus some additional resource to drive programme delivery and outreach activities. This will require some changes to how the libraries are organised and structured but ideally the role of a District Librarian will report in to a General Manager.

 There is a lack of agreed vision and direction which the new strategy will address. It will be important that library staff gain a shared understanding of the changes needed to transform the service. Some of this is about changes in what they do and how it is done but there is also a need for attitudinal change about the role of libraries in today’s society. A learning culture where innovation and community involvement are central and library staff see themselves as being “agents of active development for learning and engagement in the community”1 will require strong leadership

 The Operating expenditure for Far North Libraries is only slightly below the mean for all benchmark libraries but the staff costs as a percentage of total operating expenditure is low at 32.4%. Staff costs in public libraries are typically 45-55% of costs. After staff costs the next two biggest items in the libraries budget are corporate costs and depreciation which together account for 38% of the total. It was not possible to benchmark allocated and corporate costs against other libraries as how Councils allocate these differ. What is apparent is that the direct controllable costs for libraries is a much smaller percentage of their total expenditure and when and if cost savings are sought there is little room to reduce costs further without also looking at allocated and corporate overheads or reducing services even further.

 With the removal of the borrowing fee the expected revenue from libraries will be approximately $65-70,000 per annum which is comparable to two of the benchmark libraries. The ability for libraries to generate revenue from sources other than rates funding and user charges is difficult. Relying on fines revenue is also problematic in that libraries want to encourage items to be circulating and offer online renewals and send reminder emails ahead of items becoming due. Most libraries do not charge overdue fees for children’s borrowing as it is counterproductive to encouraging children to read and a child may no longer be allowed to borrow once a fine has occurred. We are therefore recommending the abolition of fines for children. This will encourage the use of individual membership rather than remaining on a family card.

1 Comment from an interview with Council’s Community Development Team.

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Document number A1931657 Page 6 of 54  We are aware that there are many calls on funding and libraries is only one service provided by the Council. However to provide an effective service, and particularly if Council wants to transform its services to deliver more value to residents, this will require some investment. Once the new strategy is adopted we recommend developing a ten year fiscal plan that spreads developments so as to be more affordable.

1.2 Section 17A review The Section 17A review required under the Local Government Act 2002 was done by the Consultant in conjunction with the project team. A template developed by the Far North District Council was used to assess various governance, funding and delivery options as defined by the Act.

The process used included identifying the criteria to assess the delivery options against, agreeing the weighting for each criteria, documenting our thinking and assumptions, and then scoring using a template which calculated the weighted average for each option. The scoring was a 1 to 5 scale with 1 being the lowest or worst outcome and 5 being the highest or best outcome. The assumptions and scoring template are provided in Appendices 8 & 9.

The governance and funding options and their relative scores are below:

Governance and Funding by Far North District Council Governance and Funding through a Joint Committee or other devolved governance arrangement Status Quo Joint CCO Another local Other Agency: a Joint CCO Another local Devolvement of assets authority Trust authority to Community 73.2 60.4 49.2 56.4 56.8 41.2 31.2

The Status Quo, which is in house governance and management, was seen as the best option currently in terms of delivering the outcomes the Council wants from its libraries.

The next best option would be a Joint CCO with its own Board with governance and funding retained by the contributing Councils. In the longer term this may be an option to explore once the Far North has made the changes needed as a result of this review and the new Strategy. There may well be economies of scale once the establishment costs have been depreciated and there would certainly be greater opportunities for staff in a larger organisation.

1.3 Conclusion The Far North District has a solid foundation on which to build. It has good community support for libraries both from the community at large but also from those who use the libraries. However, the way people get information, learn, read for pleasure, socialise and do business is changing rapidly due to the introduction of new technologies and the ubiquity of the ‘always on, always connected’ internet. Far North Libraries will need to change if it wants to stay relevant to all its community not just those who love and use libraries now. The recommendations for improvement in this Service Delivery Review will make for more effective services which will be necessary if the libraries are to deliver more value to more people. The vision for the future is outlined in the new library strategy which is the companion document to the Service Review.

Libraries could be the hub of the community and service the changing needs of society. The nature of work is changing and so must we… school leavers should have a known learning centre (The library) … that supports them to keep on recreating themselves so they can adapt to the changing nature of work.” - Respondent – Online survey

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Document number A1931657 Page 7 of 54 2. Introduction The Far North District Council commissioned Sue Sutherland Consulting to:

 Develop a sustainable libraries strategy for the future provision of library services aligned with the Public Libraries of New Zealand strategy, other Council strategies that take account of the strategic drivers and issues facing the Far North, and shared service opportunities. The strategy should be informed by community and user feedback, and take library services into the digital environment.  Undertake a service delivery review of library services and review future options to deliver library services that are aligned to the proposed Libraries Strategy. The review of service delivery needs to document the current services and identify any issues in relation to: - the funding, management and staffing of the libraries - the resources used to deliver services, including collections, buildings and technology, and - consider specialist services such as reference, local history, information literacy, mobile services and digital library services.  Undertake a Section 17A LGA02 review, using the FNDC Service Delivery Review Framework, based on the findings of the service delivery review and libraries strategy.

It is the Council’s intention that the outcome of both the strategy and the review will form the basis of a future business case for change (outside the scope of this work).

2.1 Methodology The service delivery report and the library strategy are two separate documents. They have, however, been developed in tandem and one informs the other. Together they tell the story of the present situation and how libraries need to develop if they are to have an impact on the social, cultural and economic wellbeing of the people of the Far North. This document deals with the Service Delivery Review. The Strategy is a separate document.

In developing both the review and the strategy we have collected a range of data from various sources, both qualitative and quantitative, over the period June to August 2017, and analysed these in order to verify data from more than one source. A list of documents consulted is in Appendix 6. This prevents personal bias or a single view from gaining undue weight in the resulting conclusions. The sources of data are illustrated below:

•Demographic analysis •Analysis of Council plans, strategies and key documents Desktop research •Analysis of social needs and library trends •Review of relevant library performance and financial data and Residents' surveys

•Workshops with Elected members, Youth Council and staff Consultation and •Interviews with key stakeholders and staff •Questionnaire for library staff needs assessment •Residents survey on the future of libraries

•Four onsite visits, including visits to libraries Observation and •High level review of IT and digital services •Benchmarking against three other local authority libraries analysis •Discussions and feedback with the project team

Four visits were made to the Far North during June, July, August and September 2017. Face-to-face and phone interviews were held throughout this period and a full list of interviewees is attached as Appendix 1.

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Document number A1931657 Page 8 of 54 The process for developing the Libraries strategy and Service review and Section 17A review process is illustrated below:

•Analysis of key local and wider drivers for change •Presentation to stimulate thinking about the changing way Library strategy libraries deliver services •Development of a draft strategic framework for discussion •Final strategy developed for Council adoption

•Review of benchmarking findings with the Project Team Service review and •Development of the draft report with recommendations •Workshop with Project Team using FNDC framework for Section 17A review Section 17A reviews •Final report developed for Council sign off

Oversight of the work has been through a close working with the Project Sponsor (the General Manager of District Services) and the Project Team which included the Project Manager, the Manager Community and Customer Services, two library staff and a policy advisor.

2.2 Report layout This report is in three main parts:  Context – this outlines the demographic characteristics of the Far North, the priorities of the Council and the needs of the community  Current state – this outlines our findings across a range of inputs and services, including analysis against benchmarked libraries and observations and commentary from interviews  Analysis and recommendations – our insights ideas for future development

2.3 Acknowledgements The Consultants, Sue Sutherland, Nancy Ward and John Truesdale acknowledge the commitment of time and energy from all those we interviewed, workshopped with and who provided us with ideas for the future. We wish to thank in particular the members of the Project Team who responded promptly to our numerous requests for additional information and data and the other staff within Council who gave generously of their time and knowledge.

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Document number A1931657 Page 9 of 54 3. Context

3.1 Demographics and geography With a land area of 7,324 km², the Far North is the largest district council geographically in the North Island. The majority of the district’s land is rural and it has no single dominant urban area. There are three towns with populations greater than 4000 (Kaikohe, Kaitaia and Kerikeri including the surrounding area).

Population at the 2013 census was 55,734 which, scattered across a large area, gives it a low population density of 7.6 people per km2 (the New Zealand average is 14.9). This has an impact on the provision of infrastructure and services, making it more costly. 2

The Council commissioned .ID to produce a population forecast for the District and sub-District populations from 2013 to 2043. The projections were based on data provided by Statistics NZ combined with assumptions built from consultation with local experts. The district was broken into 17 areas (see Appendix 2 for map) as follows:

Area 2015 2020 2030 2043 Townships Kaikohe Township 4366 4246 4023 3849 Kaitaia 5424 5419 5397 5222 Kawakawa – Moerewa 2958 2889 2802 2735 Kerikeri 3628 3878 4193 4626 Kerikeri surrounds 3606 3935 4474 4900 Mangonui-Coopers Beach-Cable Bay 1831 1936 2264 2297 Paihia-Opua and Haruru Falls 3404 3550 3648 3618 Rural Ahipara and Herekino 3416 3296 3190 3224 communities Karikari Peninsula – Maungataniwha 4780 4847 5105 5210 North Cape – Houhora - Awanui 3709 3603 3527 3476 Bay of Islands rural 5162 5134 5047 5167 Kaeo – Matauri Bay – Whangaroa 3278 3248 3281 3337 Kapiro 2900 2916 2922 2974 Russell, Rawhiti and surrounds 3286 3246 3098 3024 Kohukohu and Hokianga North 1980 1923 1859 1819 Ohaewai and Kaikohe surrounds 3340 3289 3253 3247 Rawene – Opononi – Omapere –Hokianga South 3721 3681 3635 3503 Total Population 60789 61036 61718 62228

These projections are useful in planning ahead for library development. Townships are showing more signs of growth than rural communities with the eastern towns of Kerikeri and surrounds, Mangonui and Paihia all predicted to grow. The Karikari Peninsula – Maungataniwha, which surrounds the Mangonui area is also predicted to grow to over 5000 population by 2030.

The Council published a social and economic profile of the district in 20163. Some of the key social and economic factors are (figures from the 2013 Census unless otherwise noted):  Growth in the District over the 2010-2015 period was estimated at 0.5% compared to 1.4% regionally and 1.9% nationally.  Only 13.3% of the district was born overseas compared with 23.6% nationally  The district has a disproportionately small amount of population in the 15 to 44 age range and a larger 50 to 69 population

2 Far North District Council. Long Term Plan 2015-25 3 Our District: a social and economic profile of the Far North. Kaikohe, FNDC, August 2016 http://www.fndc.govt.nz/about- the-district/economic-development/FNDC-Social-and-Economic-Profile-August-2016.pdf

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Document number A1931657 Page 10 of 54  24.8% of the district’s population identify as “Māori only” compared to 16.7% regionally and 6.6% nationally; 40.6% of FND residents claim to be of Māori descent  Although income growth for the district has occurred at rates similar to those regionally and nationally, 38.8% of district households are in the lowest national income quartile compared to 34.8% regionally. (Infometrics, 2000-2014)  50% of the district’s population live in the most deprived national quintile category, the 5th highest out of 71 areas measured. (University of Otago, 2013)  The high deprivation is more concentrated in the north and west of the district than in the east. (University of Otago, 2013)  Total employment growth has remained moderately lower in the district than regionally or nationally, with the district posting 2.0% growth for 2015 compared to 2.6% regionally and 2.4% nationally. (Infometrics, 2015)

Assumptions made in the 2015-25 LTP which are corroborated by the Population projections done by .ID are:  The proportion of over 65yr olds will increase in all communities, but particularly in those of the Eastern Ward, and Doubtless Bay which have already seen higher proportions of retirees move to live.  The proportion of 15 –24yr olds, and 25-45yr olds continues to be lower than might be expected given the number of children born and/or living in the district. This age cohort is tending to relocate out of the district for work and education, and lifestyle choices not available in the Far North.  More men than women will leave the district – so that many of the communities, but particularly the smaller communities, are over-represented by woman

The unique characteristics of the District and its population provides the backdrop for thinking about how well library services deliver currently and what might be needed as the population grows and changes.

3.2 District priorities In the 2015-25 LTP the Council identified the following strategic priorities for the next 3 years:  Infrastructure: core infrastructure with significant projects on roading, water and wastewater;  Affordability: staged investment required to achieve recovery over a number of years to ensure it is affordable to ratepayers; developing strategic plans to ensure that investment goes into the right places; and working smarter with our neighbouring councils to ensure the best value for money for our communities.  Maintain levels of service provided through its infrastructure assets, many of which are required by regulation; they will be maintained as efficiently and cost-effectively as possible.  Undertake new Capital Projects: these will be prioritised based on an objective assessment against key decision-making criteria; the spend will be about $10m per year (averaged over the 10 years of the LTP) ensure both affordability and timely delivery.  Build Council capacity and capability  Empowering Communities: this includes increasing opportunities for communities to determine the things they care about; giving people the opportunity for meaningful engagement and participation in public and community life; empowering communities to design, prioritise and deliver local initiatives; and supporting community groups to lead their communities. It also means joining up council, government agencies and non-government organisations with community leaders to maximise each other’s potential to contribute to improved community wellbeing; and improved structures and processes that empower Māori to participate in and influence local community development.

Library service delivery and the development of its new strategy needs to work within the priorities set by Council. This means having a plan which identifies what investment is needed in the infrastructure to maintain levels of service; what if any capital projects are needed over a ten year period and how these should be staged; what capacity and capability is needed within the library team to deliver services in a rapidly changing world and how libraries will work more closely with their communities and with other agencies to deliver services that the communities want and need.

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Document number A1931657 Page 11 of 54 3.3 Community needs From both our research and the interviews and workshops it is apparent that the communities in the Far North are diverse with different needs. In general the eastern half is more affluent that the west and north.

Challenges for the Far North include:  The diversity of community needs  Youth unemployment and the lack of activities for youth (other than sport)  Long term welfare dependence and the associated poverty and deprivation  School truancy, lower levels of educational achievement, lower levels of literacy  The geographical spread and isolation of some communities, distances to travel  Digital connectivity which is variable

Yet this is not the whole picture and there is also wealth, tourism, and entrepreneurship happening in communities. In many communities there is a strong community spirit leading to developments such as the Te Ahu Centre and the local efforts around a new Hundertwasser centre in Kawakawa. There is a strong Māori population and as local Iwi settle with the Crown new possibilities of investment for Iwi bring employment and economic growth to the region.

In terms of digital connectivity the USB2 rollout has the following time table:  Moerewa/Kawakawa–2018  Kaikohe – 2019  Kerikeri – 2019  Kaitaia – 2020  Paihia– 2021

A full list for Northland is attached as Appendix 7. Kaeo is not on the list for USB2 rollout. Individuals with a copper connection will be upgraded without cost. In other more rural areas fibre has been laid to schools and hospitals. The next announcement on RBI2 is expected shortly. According to information supplied Far North remains relatively deprived when it comes to connectivity with approximately 50% not connected to fibre or equivalent currently.

There are initiatives which are designed to improve connectivity in rural townships. In Te Hapua, Spark has put in a microcell at the Marae which provides connectivity within a 500m radius, and in Awanui wifi is being provided through the street lights.

Community survey As part of providing community input into the development of the Far North Libraries Strategy residents were able to opt-in to a survey which assessed their interest in a range of services, both improved current services and possible new ones. In the course of that survey a number of comments were made about current services which have corroborated our findings in the service delivery review. Where appropriate we have included some comments from respondents. A high level analysis of the survey completed by the Far North District’s Strategic Planning and Policy Group is attached as Appendix 3.

When it comes to designing a new strategy, Far North Libraries needs to take account of the district priorities as well as the needs of communities. Across the district there is need for libraries to support literacy, reading, digital literacy and provide opportunities for learning and creativity. However, the differing needs of the individual communities may require individual libraries to focus more on some aspects than others.

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Document number A1931657 Page 12 of 54 4. Current services This section documents and describes the current services delivered by Far North libraries. The findings are based on high level observations and data from a range of sources, including:  Library performance and financial data  Public library statistics, public library standards for both New Zealand and Australia  FNDC long term and annual plans and key documents  Interviews with key personnel and the library team  Benchmarking with three other libraries including discussions with them.

Benchmarking is a useful tool to assess the efficiency and effectiveness of the libraries on a range of measures. The peer libraries chosen are Selwyn (5 libraries), Tasman (4 libraries), and Thames-Coromandel (3 libraries) with the data being sourced from the 2015-16 Public Library Statistics. Selwyn and Tasman were chosen because of their similar population size (both in the 50,000’s range), and Thames-Coromandel was chosen because of its demographics in terms of higher Māori population, lower social economic profile with pockets of high income areas. They are also a peer library in the Resident Opinion Survey. The base data for all four libraries is attached as Appendix 4

Where we have had comparative data from the benchmarked libraries this has been included under that section.

We have made some observations as we have gone through the data but the detailed analysis and recommendations for change are in Section 5.

4.1 Overview The Far North District Council operates six public libraries, supports four voluntary run Community Libraries, and an Area School Community Library. The six public libraries with full services are located at Te Ahu Kaitaia, Kaikohe, Kawakawa, Procter Library Kerikeri, Williams House Paihia and the Old Post Office building Kaeo. Community Libraries are based in Kohukohu, Mangonui, Rawene and Russell and the Area School is in Broadwood, North Hokianga. There is also a ‘Friends of the Library’ group associated with Williams House Paihia Library.

Council customer services are integrated with library services at Kaeo and Kawakawa and are co-located in Te Ahu Kaitaia although serviced from an adjoining counter. Kerikeri and Kaikohe have separate Council Customer Services and in Paihia services are provided from the I-Site.

The vision for library services is to contribute to the social, cultural and economic well-being of people in the Far North District by:  Providing leisure and learning opportunities with facilities and services that are accessible, and that meet the needs of the community;  Providing best practice library and information services guided by LIANZA standards for public libraries;  Providing responsive, affordable and sustainable library and information services for our communities4.

4 Far North District Council. Long term plan 2015-2025. P252

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Document number A1931657 Page 13 of 54

Council long term plans from 2006-2016 to 2015-2025 indicate the intended priorities for libraries over the past ten years. While there has been no overarching strategy that set the direction and context for these priorities it is possible to discern what has been seen as important over the period. Achievements noted over the period include:  Introduced free internet for users in partnership with the National Library’s Aotearoa People’s Network Kaharoa (APNK)  Introduced eBook and other eResources, in partnership with other libraries in the north of the country  Provided a new modern library space in the Te Ahu complex in Kaitaia  Developed an Archives space in the Procter Library  Provided digital devices in libraries so staff can become more familiar and better able to assist the public  Established a part-time systems librarian role

However a number of priorities have not been achieved and this appears to be largely as a result of lack of funding. Although listed as a priority in various LTPs the following have not been achieved:  Investment in technology that will simplify transactional processes and improve customer service  Developing library services that reach beyond buildings including a possible mobile library service  Provide specialised services for Māori, children and young adults (specifically sited lack of funding)  Maximising the use of community volunteers across the libraries where appropriate

The Library reports on a range of targets some of which have changed with successive LTPs. In 2015-2025 the targets were to increase the percentage of satisfaction by library users and develop and encourage use of the on- line library service.

The last published Libraries’ Activities Management Plan was in 2009. We were given access to a revised Libraries Activities Management Plan dated 2014 which is not yet complete. It gives a good description of the key drivers, activities, levels of service and objectives but the sections on the Improvement plan, how to manage future demand, risk management and business continuity around the library management systems (LMS) are not completed. The section on routine maintenance and renewal and replacement of assets is limited to the library resources and does not cover internal maintenance which, according to the Asset Management Plan for Property and Community5 is the responsibility of the Libraries6. The management of the external maintenance of library buildings is the responsibility of the Infrastructure and Asset Management Group and they identified that “planned maintenance for Libraries and administration centres will be identified in condition assessment reports to be commissioned in the next 6 months”7. In reality the IAM organizes both the internal and external maintenance for the libraries on request and charges to the appropriate budget.

The Far North Libraries are involved in a number of shared services. They are members of the Aotearoa People’s Network Kaharoa (APNK) which provided free internet and computers for public to use, along with free wifi in all libraries. This partnership provides a subsidised service with the National Library of New Zealand. The library is also part of a consortium, Nove-L, for the shared purchase of eBooks in the northern half of the North Island. This gives access to a much wider range of eBooks than would otherwise be available. The libraries also purchase access to Zinio (e Magazines) in partnership with Whangarei Libraries, Kaipara and Northtec. Whangarei, Kaipara District and the Far North libraries meet on a regular basis to share information and ideas.

The Library Managers of Kaipara and Whangarei were interviewed and indicated an ongoing wish to find more ways of working together to improve services. One idea was to open up the borders between the districts now that the borrowing fee no longer applied in the Far North, to enable one library card for the area.

5 Asset Management Plan 2015-2025. Part C: Managing our assets – Property and Community. Section 4.2.2.1 https://www.fndc.govt.nz/your-council/strategic-planning/asset-management-plans 6 Ibid. “Section: 11.2 The maintenance budgets for the 4 library buildings are still contained within the library service activity” 7 Ibid. Section 11.1

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Document number A1931657 Page 14 of 54 4.2 Users People use libraries for a range of services including borrowing books and resources, as a space for learning, leisure and community activities, access to computer facilities and access to staff resources and expertise.

Membership and loans One measure of use is the loan of materials. To borrow an item a person needs to be a registered member of the library and be issued with a library card to be able to borrow books. The Association of Public Library Managers (APLM) recommends registered users to include those who have carried out one or more transactions within the past 36 months, and active borrowers to include those who have carried out one or more transactions within the past 24 months.

For Tasman, their registered users include all borrowers irrespective of whether they are active or not, and Thames-Coromandel’s registered users are the same as active borrowers which includes those who have carried out one or more transactions within the past 24 months.

The table below shows that Far North has the lowest percentage of registered members per capita compared to its peers.

Fig 1: Membership and loans Registered Users Active borrowers Issues per Issues per Active % of Capita % of Capita Capita Borrowers Far North 21%* 18% 7.4 41.8 Selwyn 55% 18% 6.5 35.6 Tasman 87% 48% 12.9 26.9 Thames-Coromandel 52% 52% 8.4 16.3 * 2016-17 figure

This could indicate that Far North libraries are not widely used for borrowing books by its residents. However, while the Library’s policy states that each borrower must have their own card, we have been advised anecdotally that Far North library cards are used by household members rather than each individual having his or her own card. While this is true to some extent amongst the benchmark libraries, Far North is likely to have a much higher percentage of card sharing because it is the only library service which, until June 2017, charged a borrower fee. As a result, users may have avoided the borrowing fees by using the same card for the household, contributing to the low registered user figures.

This view is supported by looking at the issues per capita and the issues per active borrower.

Fig 2: Issues per capita Fig 3: Issues per active borrower

Issues per Capita Issues per Active Borrower 14.0 12.9 50.0 12.0 41.8 40.0 35.6 10.0 8.4 7.4 26.9 8.0 6.5 30.0 6.0 20.0 16.3 4.0 10.0 2.0 0.0 0.0 Far North Selwyn Tasman Thames C Far North Selwyn Tasman Thames C

The issues per capita at 7.4 is comparable with two of benchmark libraries, only Tasman being significantly higher. The issues per active borrower is the highest lending weight to the view that more than one person is using the card. The average issues per active borrowers across all public libraries who reported statistics in 2015/16 was 28.92 issues per active borrower and Far North is significantly higher than that.

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Document number A1931657 Page 15 of 54 Fig 4: Registered members in 2015-16 as % of capita The number of new members registered each year has remained relatively consistent with 1,621 in 2014-15 and 1,643 in 2015-16. However this is a lower % per capita compared with the benchmark libraries as shown below.

The removal of the borrowing fee should make it easier to ensure that everyone who borrows items has their own library card so that there is a more accurate indication of the number of registered members actively using libraries for borrowing items.

Age breakdown of members The Far North libraries do not collect information regarding ethnicity of members and the date of birth category is optional for adults. They do, however, issue library membership cards based on certain categories; including Adult, Child and Young Adult. The table below shows the percentage of library borrowers by membership class as compared to the age profile of Far North population. This indicates that Far North is attracting a similar proportion of Adults, Children and Young Adults relative to the population breakdown. However, without a more detailed breakdown of the adult category it is difficult to draw any conclusions on how well the libraries are meeting the needs of its community in respect to its age profile.

Fig 5: Percentage of library borrowers by membership class vs census population Far North registered users Census Population 2013 Adult 73.1% 69.3% Children (0-13 years) 20.2% 23.8% Young Adult 6.4% 6.9% Others (Housebound etc ) 0.3 N/A Total 100% 100%

Visits Another measure of use of libraries is the number of people through the door. While some of these visits will be associated with the borrowing of items, others come to the library for a variety of reasons unrelated to borrowing. They may come to use computers, read or browse collections in house, use the wifi, meet someone, attend a programme or just enjoy the peace and quiet of a place away from home. In the case of those libraries which offer Council customer services (Kaeo, Kawakawa and Kaitaia) visits will also include this activity.

Fig 6: Physical Visits per Capita

Physical Visits per Capita 12.0 9.5 9.8 10.0 8.0 6.0 5.2 4.0 2.0 0.0 Far North Selwyn Tasman

Physical visits are gathered by door counters. Thames Coromandel was not able to supply visitor numbers so we were only able to benchmark against Selwyn and Tasman. The Far North at 9.5 visits per capita compares well with Tasman and also with the average of all libraries that reported on visits for the national APLM Statistics, which was 8.1 visits per capita. This indicates that the physical libraries are being well used for a range of activities other than, and as well as borrowing.

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Document number A1931657 Page 16 of 54 Online use The Far North Libraries report on electronic use by counting the activities on the Horizon Information Portal. This includes patron logins, requests placed and online renewals. To this they add library pages visits from Google Analytics and total activity on Ancestry.com and GivUs and GivMe. We have not been able to verify the data collected via Google Analytics for Library pages visits which seem low. When all these numbers have been collected they are totalled to give a figure for online use. We think that this is perhaps not the best way of measuring use – it is similar to adding the volume of circulation to the number of visits and saying that this is the total numbers of people using the library. What we want to measure is how many pages are viewed or items downloaded. The number of searches may be of interest but a large number of searches relative to a small number of downloads may mean that users are not finding what they want.

Fig 7: Online use

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun total 2016/17 27656 30888 28668 27135 26619 26591 26151 25219 28332 28339 32336 27482 335416 2015/16 27127 28667 28708 24663 28463 25143 27500 27154 26665 27207 29944 26273 327514 Inc/Dec 2% 8% 0% 10% -6% 6% -5% -7% 6% 4% 8% 5% 2%

Because the way public libraries record their online use is not yet well standardised, we have not undertaken a benchmarking exercise with the peer libraries.

Information services Far North does not count or measure the volume of information requests they answer. This aspect of library service has declined and/or changed significantly with the move of information online. Information requests handled include providing help to tourists (even when there are I-Site locations nearby), support with local history and knowledge, readers advisory work and helping people access and use online information.

4.3 Collections and resources Far North has the usual range of collection materials for loan including adult and children’s non-fiction and fiction, children’s picture books, young adult fiction, magazines and newspapers, DVDs for adults and children, talking books and large print books. Other collections include:  Local History collections, held in the Archives Room at the Procter Library and the Fen Barrett Collection at Kaikohe Library;  Māori collections, held in all libraries; and  Digital collections, providing access to databases, eBooks, eAudiobooks and eMagazines.

The Collection Development Policy governs the selection, maintenance, storage/transfer and disposals of the collection. There is also a Local History and Genealogy Collection Policy. Both of these policies were updated in March 2017. Far North has maintained a similar collection level of its physical collections for the last four years. With the introduction of eResources for loan the overall collection size increased in 2014/15. As at 30 June 2016 Far North’s total collection items were 131,903 which equates to 2.4 items per capita (Fig 3).

Fig 8: Collections per Capita Fig 9: E Resources % to Collections

Collections per Capita E resources % of total Collections 4.0 7.4% 3.2 8.0% 3.0 2.4 6.0% 4.6% 4.0% 2.0 1.7 1.5 4.0% 3.4%

1.0 2.0%

0.0 0.0% Far North Selwyn Tasman Thames C Far North Selwyn Tasman Thames C

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Document number A1931657 Page 17 of 54 The LIANZA standard recommends 3 items per capita for libraries with populations over 50,000. At 2.4 items per capita, Far North is below the standard as are Selwyn and Thames. However, we understand that Selwyn is moving actively to increase its stock numbers which have not kept pace with their rapidly growing population. 2.4 items per capita may be sufficient stock but this needs to be assessed along with other factors such as the size and age of the collection, how well the collections turns over and how much is spent on new materials each year.

Far North’s eResources are 7.4% of total collections in 2015-16, this being the highest amongst its peers. This is consistent with Far North’s aim to increase the percentage of online library service use - one of the two key performance indicators in the 2015-25 annual plan.

Collection turnover Collection turnover measures how many times on average a collection item is used in a given period (per annum) and is arrived at by dividing the total issues by the total number of items held. In general, a higher turnover indicates better use of stock.

Fig 10: Collections Turnover Fig 11: Collection Turnover by Library Collections Turnover Collection Turnover by Library 5.7 6.0 5 4.4 3.5 5.0 4 3.3 3.1 4.0 2.8 3.9 3 2.3 2.3 4.0 3.1 2 3.0 1 2.0 0 1.0 0.0 Far North Selwyn Tasman Thames C

Far North has a lower turnover at 3.1 compared to the benchmarked libraries. There is no LIANZA standard for stock turnover. However, the guidelines for Australian public libraries have a figure of 4.4 loans per collection item up to 5.6 items for an enhanced standard8.

Possible reasons for a lower turnover include:  Varying performance of libraries that may skew the averages (see Fig 11 above);  Collection is not refreshed as often as it should be (this would need more analysis around the age of the collections and what proportion has been purchased within the last 5 years);  Unnecessary duplication of items resulting in higher Collection level; and  A larger number of reference or special interest materials in stack collections, e.g Procter turnover is partly distorted because of its special collections and stack materials.

Further analysis of the turnover by types of collection shows the lower turnover comes from adult non- fiction/Māori, children’s non-fiction and young adult fiction. The lower turnover in non-fiction use in both children’s and adult collections is being experienced by most public libraries as more people turn to the internet and electronic resources for their information (see Fig 12 following).

8 Guidelines, standards and outcome measures for Australian Public Libraries. Australian Public Library Alliance: Australian Library and Information Association, July 2017 p.69

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Document number A1931657 Page 18 of 54 Fig 12: Turnover by type of collection Collection Turnover by Type of collection

Children non-fiction 1.5 Adult Non-Fiction & Maori 2 Young Adult 2.8 Children fiction 3.1 Avg across all formats 3.1 Adult Fiction 4.3 Magazine 4.6 Children Picture 4.6 Large Prints 4.9 Talking Book 5.9 Children DVD 7.7 DVD 9.1 0 1 2 3 4 5 6 7 8 9 10

Collection expenditure A review of the collection expenditure over the four years 2012/13 to 2015/16 indicated that there has been a reduction in the acquisition vote over that time from $317,963 to $247,493. Although the Far North has more libraries than the benchmarked libraries, it has the lowest acquisition cost per capita. While there is no New Zealand standard for this indicator, the Australian guidelines and standards have an average of $5.65per capita to $6.41 per capita as an advanced standard. The average of all public libraries in 2015-16 was $8.41 per capita.

Fig 13: Acquisition costs per Capita In summary: Acquisition Cost per Capita  There has been a real reduction in the amount of money spent on $10.0 $8.6 collection acquisition $7.0  There is comparative lower cost per $4.4 $5.0 $5.0 capita than the benchmarked libraries $- Far North Selwyn Tasman Thames C

Collection management Far North Libraries has 1.65 FTE whose roles are district wide ones supporting the collection management processes. Other staff in libraries participate in selection, acquisitions and processing as indicated below.

Fig 14: Technical Services FTE

)

) )

)

) Total

Jill Beth Margaret (Pr Andrew Te Kahuwhero (Pr) (PaRae (Pr Fiona (Kaw Nicola Roxanne (Pr) (Kait) Helen (Sys Sabine Procter (Staff) (Staff) Kaitaia (Vol)Kaitaia (Staff) Kaikohe (Vol)Kaikohe

Selection 37 2 1 2 9 9 9 5 Acquisitions 11 2 5 2 2 Cataloguing 45 25 17 3 Processing 39 2 20 6 4 4 3 Other 13 13 Totals 145 40 26 3 2 2 1 2 9 9 9 5 20 6 4 4 3 FTE 3.6 (3.38 paid) *Purple indicates a volunteer

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Document number A1931657 Page 19 of 54

This table does not record the amount of time spent on deselection which staff in the libraries do as part of the normal business of managing the collections in their libraries. We were advised that outsourcing to shelf ready supply was investigated in the past two or three years but not progressed. The reasons appear to be cost but also that it was felt the staff did a better job and processes were reasonably refined.

We were also advised that none of the selection is done using a standing order as they were not responsive enough and did not supply what was needed. Ordering is mainly done from NZ School and Library suppliers (who give a 40-45% discount), local bookseller who give good discounts, Wheelers and book representatives. They stopped using Askews on account of cost and service. Local booksellers are used for the purchase of all magazines. We were told that all material coming into the library is turned around within one week and there are no backlogs.

Books are couriered on a daily basis between libraries and 90% of the cost of the courier services is charged to libraries. Book stock is exchanged between libraries but there are no arrangements for exchange with Kaipara or Whangarei.

EBooks are sourced from both Wheelers and Overdrive. The titles from Overdrive are purchased as part of a consortium of northern libraries called Nove-L. Currently Far North Libraries spend $5,500 on this platform, half of which is the fee to access all the titles across the north and half is a content credit which they can use to select titles for consortium. Currently there are about 8000 titles available, including eAudio books.

New book lists are prepared by the Technical Assistant Librarian and are available in print and as lists through the Catalogue portal.

Local History and Reference collections The local history collection and the Nancy Pickmere Collection are housed at the Procter Library. The Fen Barret Collection is in Kaikohe. The Archives Room in Procter is open on a Monday afternoon from 1:30-4:30, and every other weekday afternoon by appointment. Customers are not charged to use the service, apart from copying costs should there be any. None of the material can be removed from the Archives room.

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Document number A1931657 Page 20 of 54 4.4 Digital and IT services Public computers Far North Libraries provides access to public computers and free wifi in partnership with the Aotearoa Peoples Network Kaharoa (APNK), a service provided by the National Library. Far North has a total of 21 PCs across its 6 libraries which equates to 0.38 PC per 1,000 population. The benchmark libraries are also members of APNK and allocation of PC numbers has been based on population. Libraries are able to purchase additional PCs at full cost recovery (the initial allocation is subsidised) and Tasman’s higher ratio may be as a result of this.

Fig 15: Public PCs No of PC per 1000 Population 0.50 0.46 0.38 0.37 0.40 0.34

0.30

0.20

0.10

0.00 Far North Selwyn Tasman Thames C

The APNK model is currently under review by the National Library. Should this be approved it is expected that libraries will be able to provide chromebooks for public use as well as all-in-one desktop computers. This will give greater flexibility for staff to use groups of chromebooks for teaching people digital skills without disrupting the use of the desktop machines for individual users. Improved wifi will be part of the offer.

Library systems Far North Libraries uses the Horizon system by SirsiDynix to manage their collections, circulation and members’ database and to provide an OPAC (public catalogue) for public access. The system is currently managed in-house on a Council server and upgrades are scheduled by the Systems Librarian with support from Council IT. In discussions with the CIO we were informed that the library server is due for replacement in the very near future and that the Council’s strategic pathway is to outsource the management of its servers. A decision will need to be made as to whether Far North Libraries continues with its current arrangement or takes the opportunity to review its options for alternative management of its core library system. In section 5 we review the options for the future supply and management of the LMS.

Horizon manages all library data and transactions. These include the processing of overdue fees and lost books. There is no interface between Horizon and the Pathway System which manages invoicing/debtors and cash receipting. We are aware that there are some issues relating to the capturing of overdue fees in the Pathway System and the cash receipting process. Library and Finance staff are working together with the view to improve the current systems and processes. It should be noted that no Finance system used in New Zealand has managed to interface seamlessly with library management systems, although some councils have been able to automate the process of data extraction from the LMS to the financial system, but not the reverse.

Self-checkout and security technologies Far North Libraries do not currently use any self-checkout or check-in technologies, nor do they have any security system for the prevention of theft of resources. The Libraries use barcode technology for managing the circulation of stock using desk mounted scanners. As noted previously there has been an intention to invest in technology that will ‘assist to simplify transactional processes and improve customer service’ but this has not been achieved for financial reasons.

Online public catalogue The library’s catalogue (OPAC) is linked from the Council website and uses the Horizon Information Portal (HIP) as its discovery tool. This is not the latest version and even the latest version has not been upgraded since 2009.

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Document number A1931657 Page 21 of 54 The catalogue is not easy to use requiring the selection of a particular category to be chosen from a drop down menu of eleven different categories. Modern search engines have created user expectations of a single and simple search that will deliver a string of related results. Advance search capabilities are still provided but not at the first point of entry.

The Far North Libraries do provide cover graphics once the user has done a search and been delivered a result for a particular item. However, at the first search screen there is no ability to browse collections in a visual way which many libraries now do. This feature presents a moving stream of new book covers to tempt the reader. An example of how the library’s OPAC could look is Hauraki District Libraries catalogue9 below:

Far North Libraries offers two different eBook platforms and also Zinio for eMagazines. Only Wheelers eBooks have their Marc records in the catalogue but there is no service integration. This means you cannot see if it is available from the catalogue or place a hold or download directly from the catalogue. It is not possible to do a single search across all the eResources offered by Far North libraries.

It would be fantastic if our libraries were a bit more up to date in terms of having things such as self-service check out machines. It would also be fantastic if the Horizon Information Portal could be updated to a newer system which is easier to use. It would also be great if things were a bit more automated in terms of being able to do printing using a card (photocopy card) and taking out books yourself etc. The service received in the library is fantastic but it would be great to be able to do things more independently. - Respondent, Online survey

9 https://ent.kotui.org.nz/client/en_AU/hauraki

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Document number A1931657 Page 22 of 54 4.5 Buildings and spaces The Council provides six libraries in the district and supports four volunteer run community libraries and an Area School library. The data below relates only to the libraries run by the Council.

A number of factors need to be taken into account when assessing how easy it is for the community to access libraries. These are:  The number and size of the actual buildings and whether or not this is adequate for the population served;  hours of opening of libraries and whether those hours are at times that suit people; and  the distance to travel from a library

Opening hours Fig 16: Opening hours per week per library Numbers of libraries Ave Opening Hours per week per Library* Far North 6 43.25 Selwyn 5 46.75 Tasman 4 43.33** Thames-Coromandel 3 42.5 *This data differs slightly from that in the 2015-16 Public Library statistics but has been taken from their published hours on the library websites ** This is the average for only 3 libraries as Murchison Library is only open 19.5 hours per week. The average if it is included is 37.375

Selwyn District Libraries has the highest average opening hours. All four of their libraries open at 8.30am and their two largest libraries are open until 7pm one night a week. Three of their four libraries provide council customer services during the week but not at the weekend. Tasman’s largest library also has one late night per week.

Far North has varying opening hours. Those libraries that also provide Council customer service open either at 8.30am or 8.00am and the other three at 9am. No libraries are open beyond 5pm at night. Kawakawa and Kaeo are not open on a Saturday. All of the other benchmark libraries are open on Saturday morning. No libraries provide Sunday opening. We were supplied with some data which suggested that Saturday opening in the Far North was not as effective in some libraries based on the issue of materials. However, more work would need to be done to really understand the needs of people in accessing library services both during the week and at the weekend. The survey has provided more data on desired hours of opening.

Size of libraries The total amount of library space in the district is 2168m210 which equates to 39m2 per 1000 population.

Fig 17: Library space per 1000 population Fig 18: Capita per service point Library m2 per 1000 population Capita per Service Point 80 70 15,000 60 11,975 10,766 60 44 39 9,289 8,727 40 10,000 20

Square Square metres 0 5,000 0

0 Far North Selwyn Tasman Thames C

The Far North is the lowest compared to two of the three benchmark libraries and significantly lower than the recommended LIANZA standard of 70m2 per 1000 population. This could indicate that the libraries are too small for the population being served. However, we know that the geographic spread of the district and its relative low density makes it not cost effective to supply sufficient libraries for every small town. The capita per service point

10 Figure reported in the APLM Public Library Statistics

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Document number A1931657 Page 23 of 54 supports this in that Far North has one library for every 9,289 people whereas both Selwyn and Tasman have more people per service point. Because they have urban areas which are more densely populated they can have fewer, larger libraries. Selwyn for example is planning a new significantly larger library to replace its Rolleston Library which will increase its m2 per 1000 population without decreasing its capita per service point.

As well as looking at the district as a whole, the following sections on each individual library assess their space against their catchment populations and this will help in assessing whether the space is sufficient for user needs. If the library space is too small for the population being served this can impact on the comfort that people have with using the space.

The Council owns and maintains four of the six library buildings at Kerikeri, Kaikohe, Kaeo and Paihia. With the move of Te Ahu in Kaitaia being managed by the Te Ahu Trust, the Council now rents its library space from the Trust which owns all the internal furniture and fittings except for the library collections. The library and service centre in Kawakawa is in leased premises although the Council is responsible for the internal renovation of the space. The Council also owns the building in Rawene which houses the community library.

The table below outlines the amount of space in each library, the number of user spaces (seating) and indicates when the library was built and/or renovated.

Fig 19: Library space Kaeo Kaikohe Kaitaia/ Kawakawa Paihia Procter/ Te Ahu Kerikeri No of user spaces 21 33 60 8 15 75 Total public space m2 132 202.4 332 180 150 880 Total non-public space m2 48 46.5 30 40.2 27 120 Gross area of library buildings m2 180 248.9 362 180 177 1000 Built = b / renovated = r 2008 r 2002 r 2012 b 1983 b 2002 b/ r 2004 b

We know that people use more than one library but in trying to determine whether a library is of adequate size to serve the population we have estimated a catchment which the library serves based on the population figures in section 3.1.

Procter Library, Kerikeri The Procter Library built new in 2004 as a standalone building, is the largest at 1000m2. It is on two levels with an open atrium giving double height space in the centre of the building, providing light and feeling of spaciousness. It is in a great location and provides a place for study, reading and browsing. There is a community meeting room with a separate entrance, and another meeting room available for use.

Several comments in the Future Libraries survey indicated dissatisfaction with the lift to the first floor which has to be operated by library staff which makes access for the elderly and infirm difficult.

The Procter Library also houses archival and special collections and maintains an open stack collection for the district. At 1000m2 the Procter Library has a capacity to serve a population of 14,500 if we apply the LIANZA standard of 70m2 per 1000 population. Given that Kerikeri is the main town on the mid-eastern side of the district it is likely that residents in part of the surrounding areas of Bay of Island rural and Kapiro will travel for shopping and services. The total catchment for this library is likely to be around 14-15,000. The Procter Library has not had any significant refurbishment over the past thirteen years and while tidy, is beginning to feel dated and tired.

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Document number A1931657 Page 24 of 54 Kaitaia Library, Te Ahu Te Ahu was opened in 2012 and the library is part of an open plan space with the foyer, café and Council service centre. The Museum is to the left of the Service Centre Counter and backs on to the library at the rear. The complex also houses the I-Site, a variety of venues for hire including different sized meeting rooms, a computer suite, a banquet room and main hall, little theatre, art space and cinema.

The library space has a special children’s area complete with a climbing tree and a hideaway space across a bridge.

The décor is modern and the ceiling height gives a spacious, airy feel. The lighting has recently been upgraded which has improved visibility but it would be important to ensure that this is meeting the required lux levels for library shelving.

The shelving in the children’s library is fixed and while it is attractive to look at it does not have the flexibility of mobile shelving. Many public libraries have moved to having their children’s shelving on castors so that it can be moved aside when larger gatherings are held.

This is the only library in the district that is part of a multi-purpose cultural complex and which includes a café. This provides many opportunities for the library to work in with the Museum and the Theatre/Cinema complex to co-ordinate programmes and events around a particular theme or event.

The library space at 362m2 meets the LIANZA standard for the population of approximately 5400. The library catchment is likely to be double that for the library. However, because of its location and placement beside the café and the large foyer it feels much bigger and should be adequate to serve the needs of that community for the next period. There is a computer suite and meeting rooms which library users can access, although there is a charge for use.

Kaeo Library and Service Centre The Kaeo Library and Service Centre is in a Council owned building and provides 180m2 of space serving the town and surrounding area which has a population

of 3278. This equates to 55m2 per 1000 population which while on the lower side can be considered adequate for a rural area. The building had a major refurbishment in 2008 and the exterior painted in 2012 to mark its 100 year anniversary. Since that date it has had some new shelving and the heating has been updated.

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Document number A1931657 Page 25 of 54 Kawakawa Library The Kawakawa Library and Service Centre is located in leased premises. At 180m2 it serves a population in the town of just under 3000 currently and is likely to have a wider catchment from the surrounding area of up to 1000 people. The Kawakawa Hundertwasser Park Charitable Trust is in the planning stages for a new centre which will include a library space of approximately 225-245m2 which should be adequate for the population, particularly as it will have other community spaces adjacent such as meeting space, a café and a workshop space. Although this is not yet a confirmed project, if it proceeds it will provide a great, modern up-to-date space for library services and opportunities for the library to work in with other occupants and the community to extend it learning, cultural and social opportunities. Kawakawa has both a secondary and a primary school which draws pupils from the surrounding area and a Kura Kaupapa nearby.

Paihia Library The Paihia Library occupies the ground floor of the historic H.B. Williams building and is the smallest of the District’s libraries at 177m2. Being an historic building it is difficult to make many changes to the interior but the library has a charm of its own which compensates for the inflexibility. The library sits in attractive grounds which we were told had been used to host events in the past but not so much recently. The library has managed the influx of those wishing to use the free wifi (largely from tourists both local and off cruise ships) by making seating available outside. The current population of Paihia and its immediate surrounds is 3404 and this equates to 52m2 per 1000 population. With the population expected to grow to 3848 by 2030 this will begin to put pressure on the space. There is room upstairs which is used for occasional events and this is possibly an area that could be taken over by the library in the future. However, the upper floor would not be suitable for book stacks as it is not sufficiently weight bearing. In the longer term we think the Council will need to assess the suitability of the building for library services and investigate whether a more modern building would better service the needs of a 21st century library.

Kaikohe Library The Kaikohe Library was renovated in 2002. It is located off the street in Library Square and at 249m2 is under the LIANZA standard for the current population of Kaikohe. Given that the catchment for the library will include some of the areas of Ohaewai and Kaikohe surrounds and parts of Hokianga south, the catchment population is likely to be around 7-8000. The LIANZA standards would suggest a space up to double the size of the current library. Even another 100m2 would add considerably to the services that could be offered from Kaikohe. The Council has identified that a new facility is required and the 2015-2025 annual plan has $2,214,000, $570,000 and $2,934,000 in years 2019-20 to 2021-22. From discussions with FNDC staff we have been advised that this is likely to be pushed out if and when it occurs. However, the current building is badly in need of a rearrangement and refurbishment in the short term. We support the proposal by staff to downsize the collection and give more space over to activities and seating which would improve collection turnover as well

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Document number A1931657 Page 26 of 54 as updating the interior. Removing the stack materials to a single stack based in Procter Library will also provide more space in the staff work area.

4.6 Programmes, Events and Outreach Programmes and events are a key part to providing leisure and learning opportunities. Each library runs their own programmes and events but there is no official recording of attendance. There are some regular programmes but in general, it depends on demand and staff availability and it varies from library to library. Anecdotally attendances vary by library and by programmes.

In general, programmes (regular and ad hoc) include:  Children programmes such as holiday programmes, story times, wriggle and rhyme  Study/skills assistance such as Studylink support, computer/digital device training  Special group gatherings and book launch  Various events such as Māori Language week, Conservation week, Book Council and Hell Pizza reading challenge

Because of the lack of data we are unable to do any comparison with the benchmark libraries. Programmes and events need to be treated as part of the core service of libraries with a better coordinated approach. They are key to engaging more widely with the community to provide opportunities across all stages of life from the very young to older people. Language development, becoming literate, growing reading, special events that support community activities, employment, digital skills are all possibilities for libraries to support the learning and recreational needs of communities.

Community Libraries Far North has four community libraries run by volunteers and one community library based in an Area School. All of the libraries in the benchmarking study had community libraries to which they provided varying levels of support. Some provide grants but mostly support is by way of book loans. In districts where there are scattered populations across a large geographical area the community library provides reading material for their local members, when a full library service is not financially viable. The Far North Libraries provides book loans to the community libraries as follows:  Kaikohe: Rawene and Broadwood Area School  Kawakawa: Russell (they also provide book barcodes)  Kaitaia: Kohukohu and Mangonui

Fig 20: Community libraries in relation to full service libraries Far North Selwyn Tasman Thames Coromandel Population 55,734 53,830 47,898 26,181 Land area (km2) 7,324 6,381 9,616 2,207 Libraries 6 5 4 3 Community Libraries 5 1 4 3

Although these libraries are outside the scope of the service delivery review we felt it was important for a total picture of the district to understand the role they played in their communities. All of the libraries were interviewed either by phone or email in response to a number of questions.

Kohukohu Kohukohu community library has 70 paid up members and charge an annual membership fee. As well as a range of contemporary fiction/non-fiction they have audio/large print collections exchanged every six months from the Northland Library Network. New books are purchased quarterly. They provide a selection of current lifestyle magazines, a small DVD collection and have a comprehensive historical Northland/Māori section. They also offer free Wifi having negotiated a community sponsorship for unlimited data with Uber (a Far North wifi provider). In the past they have offered computer classes using their 2 public computers and provide a photocopier for the public. A Book Discussion group meets monthly. As Kohukohu does not have a museum they also have an archive

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Document number A1931657 Page 27 of 54 room with historical material on display which is of particular interest to visitors to the area and researchers. In the future they plan to establish a film archive of North Hokianga material.

Russell Russell community library has about 200 members and charge both an annual membership fee per household and a fee to borrow (50c and 10c per adult and children’s book respectively). They receive talking books from the National Library and charge $1 per loan. Their collection is mainly book related and about 50% is made up of donations. They do not offer wifi. They claim to be the oldest library in the country having been formed in 1840 from collections supplied by the early whalers.

Broadwood Broadwood community library is adjacent to the school library and accessed via the school library. There are about 15 members plus staff and school students who use the library. There is no charge to join or borrow materials. The public can come during school opening hours. The library is closed during school holidays. There receive 250 books from Kaikohe every two months and it covers fiction and nonfiction, both adult and children. They don’t have money to buy books for the community library (in the early days of the community library they did get a grant from FNDC to buy books) but rely on the stock from Kaikohe. They appreciate the service but would like it to include some more recent fiction if that were possible. The also get talking books from the Northern Library network. They have free wifi and the librarian runs an early childhood session on a Friday morning. The area school community library works well for them. The also get support from the National Library’s Services to Schools which is appreciated.

Mangonui Mangonui library is located in a 36m2 room attached to the Mangonui Hall and they pay the FNDC a very reasonable rate for use of the space. The library has approximately 170 members who mostly live in the Doubtless Bay area, Hihi, Mangonui, Taipa, Peria and a few with Kaitaia addresses. They have been a community library for over 100 years and for the past 6 or 7 have operated as an independent community library but with some FND library privileges. Until recently they issued FND Library cards with a Mangonui stamp allowing their members to borrow in Mangonui but also at all FND libraries. Currently all Mangonui Community Library (MCL) members are also FND Library members. With the abolition of the borrowing charge by FNDC this arrangement has stopped and the new card will no longer carry FND Library borrowing privileges. There is a $15 per year subscription but no charge to borrow individual items.

Their collection comprises some 4000 items. Kaitaia library provides 200 books every 3 months which the volunteers select themselves from the shelves. They apply for grants every year, typically a COGs grant or Lottery. The Kaitaia Library has been generous with advice and a sounding board for discussion on all sorts of library matters. The library does have wifi but discourages public use as they don’t want to compete with the Doubtless Bay Info Centre down the street. They do not have a computer for public use. They receive audio books, DVDs and large print from the Northern Library Network.

The library runs a story hour for the Mangonui School, have had book talks and author evening and publish a newsletter two or three times a year, emailed to our members and with hard copies in the library. The also help various book groups network and connect with interested readers. They would like to extend their hours as they currently provide little opportunity for working people. Future plans include expanding their collection of local history although they do not have a safe environment for materials that really should be in archives. They would also like to expand the library into the hall (which is underutilised) so they can have other activities such as a film series, discussion groups, presentations by creative people in the community, etc.

Rawene Rawene Community Library has approximately 90 paid up members. Prior to the abolition of the borrowing fee at FND Libraries they offered dual membership for $15 with $5 going to FNDC. This has ceased and their subscription has reverted to $10 per annum for a family. Children under 18 years are free. The library is in a building owned by the Council which they occupy rent free. They receive 200 books on loan every 4 months from Kaikohe Library and recently have been given the opportunity for members of both libraries to drop their Kaikohe Library books here at Rawene for return to Kaikohe. They have a small collection of DVDs which have been donated by members and are affiliated with the Northern Libraries Network and receive approximately 100 talking books and large print books every 6 months.

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Customers can have 200MB free wi-fi per day and they ask for a small Koha for the use of the library computer. People can print documents at the library and they help with internet searches for those who are unfamiliar with how the internet works. Members are welcome to make themselves a cup of tea at the library. Non-members may also do this for a Koha. Many of their members live alone and they encourage conversation in the library with other members or the volunteers.

Apart from the Area school they were the only community library that paid their librarians. They rely on Lotteries and Pub Charity Funding to pay 10.5hrs/week and to cover running costs. The librarians work extra hours voluntarily and they have a great Charitable Trust who also put in volunteer hours. They would encourage the Rawene Polytech to do digital literacy training for the community as they are open more hours and have tutors employed specially for the purpose.

Outreach Other outreach into the community includes some drop off services such as to rest homes either by volunteers or staff drop off after work. There is no mobile bus service although this was investigated and a business case produced several years ago. We did not sight this report. Kaikohe has recently provided a drop off of reserved books for customers at the Rawene Service Centre for the distribution through the Rawene Library.

4.7 Promotion and marketing Promotion The work of libraries, like much of Council activity is often invisible to communities. Even those who use libraries are often unaware of the other services that might be available to them. The library does a good job of promoting itself through its paper leaflets, new book lists and so on but has less ability to do so through social media outlets. The Council has a Facebook page and library events can be posted there but it was not clear to us how easy it is for library staff to do that directly or whether they needed to go through an approval process. Social media outlets are less formal channels than websites and provide an easy way to get the library message out to different age groups across a range of different media. There are tools available that can publish to multiple social media sites at the same time and several are relatively cheap or in some cases free to use.11

The Library does not have a separate website and we understand there is no intention to do this. As noted earlier there is a link to the Library’s online catalogue but this does not provide any opportunity to promote collections or services in an appealing way.

Marketing Marketing is the process of identify the particular communities of interest that the library serves, understanding the needs of particular segments and identifying the products or services that fit those needs. To do this the library needs to understand more about its community and work with identifiable groups to better design services that will attract users to the services they offer.

At this point in time the main source of community input has been through the annual Residents’ survey. We have reviewed surveys from the benchmarking libraries for 2015-16 below:

Fig 21: Satisfaction survey for 2016 Far North Selwyn Tasman Thames- Coromandel Resident Satisfaction 67% 82% 79% 67% Library Users Satisfaction 84% 85% 89% 79% % of users=58% % of users=63% % of users=75% % of users=47 Definition of Satisfaction Very Satisfied/ Very Good/Good Very Satisfied/ Very Satisfied/ Satisfied Fairly Satisfied Satisfied

11 http://www.toprankblog.com/2015/07/social-media-marketing-tools/ this is just one review of available tools.

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Document number A1931657 Page 29 of 54 The Far North surveyed 500 residents. Of these 58% were library users and of those 84% were satisfied or very satisfied with the service. This is similar to Selwyn, better than Thames Coromandel with Tasman having the highest satisfaction for both users at 89%. Resident satisfaction at 67% was considerably less than both Selwyn and Tasman and on a par with Thames-Coromandel. The 2017 survey has just been completed and early results are suggesting an improvement in user satisfaction to 90% of satisfied and very satisfied. The result for resident satisfaction was not supplied.

We have reviewed the comments about libraries in the last three residents’ surveys to understand what residents and/or users think needs improvement. The key comments related to:  Access - Lack of library near where a person lived, or distance to public libraries, Kaitaia no longer in centre of town  Collections - Poor books selections, books old and damaged, not enough books, eBooks awkward to use  Buildings - Library too small; Kawakawa now jammed into a Council building; poor maintenance  Staff - are untrained, unhelpful, they pretend like they own the library  Children - Fining children for late books; lack of activities for children, boring – no creativity

4.8 Staff Staff numbers Sufficient staff with the right skills and attitude are key to delivering effective and innovative services. The Far North Libraries has a total of 16.94 FTE as at July 2017. Included in this are 0.04 FTE casuals and 1 fixed term FTE. The breakdown of staff by library and job title is as follows:

Fig22: staff by library and position Technical Technical Services Customer Library Senior Principal Systems Services Assistant Service Assistant/ Total Librarian Librarian Librarian Librarian Librarian Officer Casuals FTEs Kaikohe 0.80 - 2.10 2.90 Kaitaia (Te Ahu) 1.00 - - - - 2.85 3.85 Kawakawa 1.00 1.00 Kerikeri (Procter) 1.00 4.35 - 5.35* Paihia (Williams House) 1.00 - - - - 1.00 Kaeo 0.20 - - - - 0.20** District Wide 0.80 1.00 0.80 0.04 2.64 Total 16.94 *Includes 1 FTE fixed term for a year ** In addition there is 1 FTE of Customer Services officer

The overall responsibility for library services is part of the responsibilities of the Community and Customer Services Manager who reports to the General Manager District Services. Each Library has a Principle Librarian or a Senior Librarian who is responsible for the day to day operations of that Library. Across the libraries, there is a Systems Librarian role responsible for the Library management system and digital developments, and a Technical Services Librarian and Customer Services officer responsible for cataloguing, selection and acquisition of library resources and over-seeing book processing. The APLM Public library statistics indicate that there are 9.95 FTE of professional staff with library qualifications but we have not been able to verify that.

Culture To foster communication and cohesion, the Community and Customer Services Manager has a monthly meeting of senior library managers and fortnightly face to face meetings with all direct reports. The distances do make it difficult to foster a sense of team and our interviews with staff confirmed this. The individual libraries tended to ‘do their own thing’ and don’t talk and share as they used to. This has become more marked over the past few years. The challenge is how to deliver to the differing community needs while at the same time ensuring that the libraries work more closely as a cohesive network with strong leadership at District level. The Community and

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Document number A1931657 Page 30 of 54 Customer Services Manager role has a broad set of responsibilities and libraries is just one part of it. There is no library qualified and experienced staff member whose role it is to focus on pulling the library service delivery together. The LIANZA standards do recommend the appointment of “a library manager who is experienced in management and who has recognized library qualifications”12.

Another issue raised was that libraries need to evolve and change to meet the particular needs of the people of the Far North but there is not a shared understanding of what that change means among library staff.

Training and development One of the priorities outlined in the 2015-2025 LTP was to “refocus staff training, in particular to include sound customer and product knowledge, use of technology and cultural skills.” In the 2015-16 annual report, it was reported against achievements that “the introduction of digital devices in the libraries has enabled staff to gain more training on a wider range of devices. As a result staff are better equipped to assist library users. There is a continuing commitment to enabling staff to attend training, including online options in these areas.” We were supplied with samples of the template used for individual staff development plans but were not able to corroborate what actual training had taken place.

Comparison of staff numbers One way to measure whether or not the service has sufficient staff is to look at the number of staff per 1000 population and the number per service point.

Fig 23: Staff per 1000 Population Fig 24: Staff per service point

Staff per 1000 Capita Inc Casuals Staff per Service Point inc Casuals 8.00 0.70 0.60 7.21 0.60 7.00 6.00 0.50 0.42 0.37 5.00 4.51 0.40 0.28 4.00 3.27 0.30 2.62 3.00 0.20 2.00 0.10 1.00 0.00 0.00 Far North Selwyn Tasman Thames C Far North Selwyn Tasman Thames C

Far North’s staff per 1000 capita was the lowest even though it has more libraries when compared to its peers. The average across all libraries that reported staff numbers in the 2015-16 public library statistics was 1.32 per 1000 capita.

Far North also has the lowest number of staff per service point at 2.62 FTE. The three smaller libraries of Kawakawa, Kaeo and Paihia each have 1 FTE with two of these having a staff member responsible for Council customer service as support. It leaves little time for providing programmes and events or other outreach activities.

These two measures taken together indicate that staff resources are at the very low end of provision. Given the spread of libraries and the minimum resources the standard of the current service is a credit to the library team.

The LIANZA public library standards are not really helpful in this area. They provide three different ways of calculating staff numbers which yield very different outcomes ranging from 14 FTE to 28 FTE for a library service the size of the Far North. The standards comment that “because of the diverse nature of communities, their population size, make-up and geographic distribution, there cannot be a single formula model or standard in determining total staff numbers13”.

12 Standards for New Zealand Public Libraries. LIANZA, 2004 p13 13 Ibid.

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Document number A1931657 Page 31 of 54 Volunteers Far North libraries has some volunteers who mainly assist with book processing and other routine tasks including some check-out and check-in. We were told that they used to have more volunteers but that there was a view that they made too many mistakes and it was easier to just do the processing themselves.

4.9 Finance In preparing the financial analysis we have analysed the Far North financials and have also endeavoured to do a comparison with two of the benchmarking libraries who supplied us with copies of their 2015-16 financials, as the figures in the Public library statistics were not sufficiently detailed.

Expenditure Far North Libraries operating expenditure for 2015-16 is shown in below:

Fig 25: Breakdown of library operating expenditure as a % of total 2015-16 % of total expenditure Personnel 957,163 32.4% Other operating expenses 384,357 13.0% Total operating expenses before: 1,341,520 45.4% Bad debt/Doubtful debt* 35,564 1.2% Allocated costs 418,496 14.2% Corporate costs 632,411 21.4% Depreciation 515,432 17.4% Interest 13,557 0.5% Total Expenditure 2,956,980 100.0% * this is write off of uncollected rates allocated across all units

While personnel at 32.4% of total operating expenditure is the biggest cost, compared to the other libraries this is a low percentage (Fig 26). Salaries in libraries are typically between 45-55% of the total library costs. The low comparative cost taken with the lower staff per capita as discussed earlier indicates that staff resources for a district this size may not be adequate.

Fig 26: Staff costs Fig 27: Operating expenditure per capita

Staff cost % of Total Operating Costs Operating Expenditure per Capita 60.0% $80.0 $72.6 51.1% $70.0 50.0% 45.9% $60.0 $53.1 $51.8 40.0% $46.5 32.4% 32.1% $50.0 30.0% $40.0 $30.0 20.0% $20.0 10.0% $10.0 0.0% $0.0 Far North Selwyn Tasman Thames C Far North Selwyn Tasman Thames C

When the total operating expenditures are compared the Far North Libraries’ operating expenditure per capita of $53.1 was at similar level to Thames-Coromandel and slightly higher than Selwyn (Fig 27). Tasman’s expenditure was considerably higher. Given that Far North has more libraries with a large geographic spread, it is expected that it would have a higher cost and their operating expenditure per capita compares reasonably with its peers.

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In the Far North, after personnel costs, corporate costs and depreciation together account for 38.8% of the total expenditure and are the next two largest items. An analysis of Far North expenditure with two of its peers show that if personnel, depreciation and interest are taken out (all of which are easily identifiable as comparable in all financials), the remaining expenditure as a percentage of total operating costs was around 38% for Tasman and Selwyn, compared to almost 50% for the Far North. It has not been possible to analyse the details of this difference as councils do treat their overheads and allocations differently. However the impact is that the Far North Libraries’ direct controllable costs are a much smaller percentage of their total expenditure, and when and if cost savings are sought, there is little room to reduce costs further without looking at allocated costs, depreciation and corporate costs.

IT allocated costs for the Far North were $197,269 which include any support that Council IT does of the library management system, plus an allocation for corporate IT services. It is difficult to know without a breakdown of the charge how much of it can be attributed to supporting library specific IT and how much is corporate for such things as staff PC’s, networks and other office type equipment and services.

Revenue Apart from rates income, Far North revenue was $161,103 in 2015-16 (Fig 28). Of this $28,682 was for an insurance claim and is therefore discounted from the total, taking revenue for the year to $132,421. With the removal of borrowing fees from 1 July 2017 this will reduce the revenue to around $65,000-$70,000 per annum. This is similar to both Selwyn and Thames-Coromandel who generate $65,000 and $75,000 respectively.

Fig 28: Far North Libraries revenue Income Generated

Borrowing fee $65,595 Recoveries (post, copy etc) $26,705 Fines for overdue and lost items $32,594 Sale of goods - books $4,062 Room Hire Charges $2,503 Grants $962 Insurance claim $28,682 Total $161,103

Tasman generated revenue of $261,000 however, they charge a borrowing fee of $1.50 on all adult stock, including large print for items under two years old which was a response to pressure in the 1990s to generate 20- 25% revenue. This has never been achieved and Tasman’s revenue is about 7% of their expenditure. It should be noted that Tasman District is predominately in the 2nd and 3rd quintile from a deprivation point of view with small patches of quintile 1, and quintile 4 around Motueka.

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Document number A1931657 Page 33 of 54 5. Analysis and recommendations This section covers our analysis of and commentary on the current state and provides recommendations to strengthen and improve services. These recommendations will need to be evaluated in the light of the new Library Strategy as to the timing and priority of the different initiatives.

5.1 Overview The following graph provides a visual way at looking at how Far North Libraries compares with the benchmark libraries based on the data in the previous section. It uses the mean for all libraries in the benchmarking group and compares Far North to this mean. In summary we can make the following assumptions:

65.0% Far North Libraries - Comparison with Benchmark Means

45.0% 38.8%

25.0% 8.5% 5.0%

-5.3% -15.0% -8.8% -15.7% -18.2% -19.8% -24.9% -35.0% -29.0% -29.3% -37.2% -55.0% -60.2%

-75.0%

 While the registered users per capita and the issues per capita are lower than the mean for all libraries the issues per active borrower is considerably higher lending weight to the argument that because of the borrowing fee families were using only one card for multiple people.  Overall the collections per capita are higher than the mean for all libraries but collection turnover is considerably lower. Possible causes are the age of the collection with collections perhaps not being weeded as well which can lead to lower turnover. The acquisition costs per capita is also lower than the mean which may confirm that there is insufficient new stock being purchased. Given that the collection vote has been reduced over the past 4 years this could be a factor.  The amount of library space in m2 per capita is lower than the mean but there are more libraries serving the population which means a lower population per service point.  The numbers of staff per 1000 capita is lower than the mean as is the staff per service point. While this could mean the staff are very efficient in what they do it also indicates that the resources are very thinly spread across the district’s libraries.  The Operating expenditure is only slightly below the mean for all libraries but the staff costs as a % of total operating expenditure is low compared with other direct and indirect costs. Salaries are typically 45-55% of costs. This supports the view that there are too few staff, or that other costs are disproportionately high.

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Document number A1931657 Page 34 of 54 These factors are examined in more detail below and recommendations for improvement follow at the end of each section.

In developing the benchmarking we have relied heavily on the data in the APLM public library statistics. The statistics are comprehensive and not all libraries appear to report accurately according to the definitions provided. Where possible we have followed up with Far North Libraries and the benchmarking libraries to make sure comparisons are valid. It is probably timely for Far North Libraries to review how it is collecting the data and, once the new strategy is adopted, revising what the most appropriate measures are to demonstrate the value being delivered.

Recommendation for improvement  Review the collection of data and, once the new strategy is adopted, revise what the most appropriate measures are to demonstrate the value being delivered.

5.2 Users Growing the user base of the library means more people are benefiting from the services and the Council is getting a greater return on its investment in terms of social benefit. It is difficult to know currently how many citizens are making use of the services because many families just use the one card. With the removal of the borrowing fee this provides the opportunity to have a major drive to encourage users to have their own membership card. This is particularly important for children as it encourages in them a sense of pride at having their own card and is the first step in encouraging a lifelong library habit. It also enables possible collaboration with Whangarei and Kaipara for open borders between the three councils.

We would also encourage the libraries to collect some additional data about their members. They do ask for date of birth but it is optional and we recommend that Far North Libraries make this a required category. Auckland Libraries asks for gender (male, female or gender diverse) and, as an optional category, asks for reading language and ethnicities, providing both categories with a range of drop down options for selection. They ask for this information to assist them in developing their collections and services. While there may be sensitivities in asking for information on ethnicity and/or reading language providing these as optional categories is an excellent tool in helping planning services and collections and we would recommend this is introduced. Joining new members could be simplified by introducing an online membership form as an easy way to encourage members to join. This may not be possible until such time as Far North moves to a new library management system (see section 5.4 below for a discussion on this)

The purging of the members database for people who have not used their card in the past 36 months is problematic for libraries. On the one hand it is important not to inflate the reporting of membership by including people who no longer use the libraries for a whole range of reasons: they have left the district, died, are no longer interested or they have a debt which they can’t or don’t want to pay. Prior to any purge we would recommend that the person is contacted by way of an email, SMS or post to check whether they still want to be a member. This can have the effect of prompting a person to revisit the library and begin using it again. The other problem in purging members who have not used their card to borrow an item is that they may be an e-user, accessing the libraries collections remotely and not physically taking an item out.

Other measures of use include visits, those who attend programmes and online use. We recommend a closer look at what is being counted in terms of online use to make sure that what is being measured is meaningful.

Recommendations for improvement  Encourage one card per customer  Make date of birth a required category and consider adding optional categories around gender, language and ethnicity  Simplify the joining process with an online membership form  Contact members prior to purging after 36 months of inactivity  Start gathering information and attendance numbers for programmes and events  Review what gets collected and counted in online use  Investigate collaborating with Kaipara and Whangarei to provide ‘open borders’ for library users.

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Document number A1931657 Page 35 of 54

5.3 Collections and resources Turnover and expenditure The main issues we have identified with collections relate to collection turnover and whether the changes in reading habits, in particular related to nonfiction collections, is reflected in the purchasing. We did not look in detail at the budgets of individual collections but given the low rate of turnover for both adult and children’s nonfiction this is an area that needs looking at. With the move of factual information into an online environment the demand for that type of nonfiction has fallen away. Some areas remain popular such as travel, cooking, biographies, but other areas are less popular. Turnover can also be improved by weeding the collections. While it is important to have some depth in collections, the balance of older materials to new would see more of the collection being less than six As a pensioner the library is very years old. In terms of the acquisitions budget more analysis is needed important to me as I cannot afford to to know whether this is adequate to renew the collection. Staff need to buy new books. Quite a few of the look at how many titles and items are being added each year and if this books in the library are so old and sufficient to renew the collections over the length of expected life. If the tatty they should be culled out. I discounts from their suppliers are good then it may be that this is sufficient. However the analysis needs to be done before we can say with would also like to see more of the new any certainty whether the acquisitions vote is sufficient. novels that are coming out - Respondent, Online survey EResources The move to increase the eBook and other eResources is commended. Providing eBooks, eAudio books and eMagazines is one way to serve the more isolated communities where no library is available. Although the connectivity in the District may still be low compared with other parts of New Zealand, this will change over the next 5 years. Providing a good selection of eResources and having those easily available via the catalogue is one way of extending the reach of the library.

We note that the library does not subscribe to any of the online databases which are available via EPIC (a whole of country purchasing solution run by the National Library)14. We understand that these were cancelled some years ago because of cost and a lack of use. Lack of use was a real issues when users were required to search each database separately by logging into a particular database. It required the user to have some knowledge of where to look. However, with discovery platforms and the use of tools such as EDS and eResource Central a user can do one single search and these databases will be searched at the same time as the physical collections. We recommend that Far North Libraries reconsiders subscribing to a basic EPIC package once they have a new discovery layer for their LMS (see section 5.4 below for more discussion on this topic). This will broaden the collection to include full text articles, photos and videos from sources that are not freely available on the internet, and making it available from wherever the user is, by logging on using their library membership number.

Collection management We did not review the work done earlier on outsourcing the supply of shelf ready material so we are not in a position to comment on the basis for the decision not to go down this line. The cost is ‘up front’ in that it is known whereas the cost of processing in house is ‘hidden’ in staff time. According to the information provided to us time spent each week on processing stock is almost 1FTE (39 hours) of which 7 hours is done by volunteers. This leaves 32 hours per week of staff time on processing of stock. If the average salary is $45,000 this means $36,000 is being spent on getting collections shelf ready. The average price for processing from a supplier is around $3.50 per item which would equate to over 10,000 items, more than is purchased annually. Outsourcing the supply of shelf ready material, including the supply of the catalogue record (around $4 per item if the record is not in Te Puna) would cost around $7.50 per item. However, not all items would require original cataloguing so only a percentage of stock supplied this way would cost the full amount. Other factors besides cost which may have influenced the decision not to proceed could have been the wish to support local booksellers who can still be used for the supply of magazines which would be outside any outsourcing arrangement.

The practice of outsourcing varies in New Zealand libraries. Some libraries outsource almost all the selection, cataloguing and processing; others just outsource cataloguing and processing and retain selection, and some only outsource parts of the collections such as fiction and children’s books. Our view is that currently the move to outsourcing, if it requires additional operational funds to implement, is probably a lower priority than some other

14 See http://epic.org.nz/about-epic/subscription-options/public for information on databases available through EPIC

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Document number A1931657 Page 36 of 54 areas for improvement. Some savings in processing time could be found if greater use was made of volunteers. We acknowledge there is a reluctance to do this because of perceived issues with quality but this has to be weighed up against what else staff time might be better spent on.

We noticed that Kaikohe has a small stack collection as does Kaeo. Given the relatively small space for both public and staff we recommend that the district consolidates on one stack collection held at the largest library, Procter.

Recommendations for improvement  Set up a project to review the collection in terms of age, turnover, relative spend to ensure that purchasing matches demand and turnover improves.  Continue to invest in building the collection of eBooks and eMagazines and consider subscribing to selected databases through EPIC once an integrated discovery system is in place.  Reduce the amount of staff time spent on processing stock and/or revisit the costs of outsourcing the supply of catalogued and shelf ready material for mainstream fiction and nonfiction.  Consolidate on one stack collection at Procter Library.

5.4 Digital and IT services Digital technologies are an integral part of what a library delivers and how it delivers services to users. Providing access to information and services via the internet, and enabling people to have access to a personal computer has been part of many libraries suite of services for twenty years. Far North provides PCs in partnership with APNK and with the proposed new model is likely to have access to Chromebooks as well as fixed desktop models. This will require the libraries to plan the processes around how these will be managed and used. We do understand the difficulties that Kaikohe library has faced with vandalism and unacceptable behaviour from a small group of users but would encourage the library to seek solutions that do not put barriers in the way of use of the computers by those who need it most.

Library systems With the Council’s move to outsourcing hosting of its servers it is timely to review what needs to happen to provide Far North Libraries with a modern LMS and discovery system that will improve services to users and productivity. A modern system provides the opportunity to fully integrate all of a library’s physical and electronic collections in a single search and enable the user to connect directly to the item. It should enable easy extraction of data for reporting purposes.

In our view there are three possible options for the future supply and management of the LMS.

 Move to a SaaS service for Horizon Remain with Horizon and use the Software as a Service (SaaS) offering supplied by SirsiDynix based in Melbourne. The responsibility for the management of the system and future upgrades would pass to SirsiDynix. The downside of this option is the reliability of the connection of trans-Tasman communications for circulation transactions. Good circuitry can be locked in but at a cost. Moving to a SaaS solution for Horizon would force a move to using Enterprise instead of HIP (as the SaaS solution’s OPAC), and would bring extra cost. To integrate electronic resources and e-books though Enterprise would mean buying EDS (Ebsco Discovery Service) and eRC (eResource Central) from SirsiDynix. Costs of the SaaS service for Horizon and the additional software packages are not known.

 RFP to select a new library management system This option would require the development of a full set of requirements, writing the brief for an RFP, evaluation of the solutions offered, and the subsequent implementation and transfer of data from the current system to the old system. The RFP specification should also be prepared for a Discovery service for both electronic and physical resources as it is not wise to assume that whatever comes with an LMS would be suitable. The minimum cost for the RFP process whether produced in-house by staff, or outsourced to specialist expertise is likely to be $100,000 plus.

There are only a small number of LMS in use in public libraries in New Zealand. The majority use SirsiDynix but there is also Millennium (Auckland only), Civica, BookPlus (Wellington only) and Koha that would all be possibilities through an RFP process. The latter is an open source solution and, while the software may be free, does come

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Document number A1931657 Page 37 of 54 with costs of development as members of any open source system are expected to contribute to its development. Any open source solution will also require external management given the Council’s strategy of outsourcing hosting. Costs of implementing a new system, the conversion of data and the hosting of the service will depend on the option chosen and would be additional to the cost of developing and running the RFP process. These costs are not known.

 Join Kōtui This is the shared library management and discovery system owned and managed by National Library for the benefit of public libraries of New Zealand. 34 local authorities are members of the consortia with a number of others indicating their intention to join in the next twelve months. Kaipara District Libraries is one of these. Kōtui has been operational since September 2011 and uses the SirsiDynix Symphony system, as well as providing access to integrated discovery across multiple platforms. EDS and eRC are provided as part of the subscription. The system was chosen after a full RFP process and selection made in conjunction with representatives of the first group of libraries to join the consortia. Kōtui services effectively provide a SaaS / Cloud solution for New Zealand libraries and it includes a full support desk which operates during all Kōtui library opening hours. A full list of what Kōtui offers is attached as Appendix 5. Costs for Far North to go with Kōtui would be a one off cost of $60000 – 85,000 for setup and data migration and an annual subscription of $62,000 for the services described above. This cost would be offset by no longer paying the annual fee direct to SirsiDynix and by some reduction in direct allocations from Council IT.

Self-issue technology Self-checkout technology provides benefits to both users and staff. For users it gives them the independence and privacy to issue their own material. For staff, it frees them from some of the transactional activities and allows them to use that time for more value added activities. The early forms of self-checkout were based on barcode technology which is what Far North Libraries currently uses. More and more libraries are moving to RFID technology which uses a radio frequency tag to identify the individual book items rather than a barcode. The self- checkout for users is also simpler with RFID as a number of items can be issued at once, rather than singly as is required with barcode technology. RFID technologies have advantages for stock management as well. Using a hand held device, the library staff member can quickly identify items that are misplaced on the shelf, or that are missing when the system says the book is on the shelf.

It is inevitable that all libraries will move over time to RFID and in time it is likely that books will come with the RFID tag embedded. Currently 39 Councils have either converted to RFID or are planning to which is 59% of public libraries in New Zealand. The expensive part of any move to RFID is the cost of the tags and the tagging of the items. At current prices it would cost just over $22,000 to purchase the tags for the Far North collection. These costs have come down significantly over time and will probably continue to do so. We recommend that planning is done for a move to RFID within the next 3 years with a simple business case identifying costs and benefits of such a move. The proposal could also include a move to installing a security system although research into the effectiveness of security gates in preventing theft is not conclusive. Some studies have found that the loss rate from theft is considerably less than the loss rate from non-returned stock. Anecdotally, those who introduced RFID self-check found that the loss rate reduced. People like using the terminal and were less likely to mistakenly walk out the door without getting books issued. There is also the view that those items which are prone to theft (all libraries are able to identify what these are for their area) will still be removed without issuing as no security system is perfect in its prevention. The online portal really needs to be Online public catalogue evaluated and upgraded to reflect As already noted a modern public library system will have an integrated single what customers expect of interactive search across all its collections and provide better browseability of collections information resources. The user online. This is an area which would make a considerable difference to Far experience is poor and it discourages North Libraries ability to promote its collections online and to provide a more intuitive and simple search interface for users. We recommend that this is my family from looking for books an important component of any future LMS online. - Respondent, Online survey Recommendations for improvement  Plan for the introduction of Chromebooks ahead of the new APNK model, and find ways to manage customer behaviour without unnecessary barriers to use.

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Document number A1931657 Page 38 of 54  Evaluate the best option for delivering a cost effective, modern LMS that provides a fully integrated discovery service and is an outsourced solution.  Plan for a move to RFID within the next 3 years by preparing a simple business case identifying the costs and benefits of such a move.

5.5 Buildings and spaces Access to libraries If the population of the Far North was contained in a more compact district, or the majority of the population was largely located in an urban area the Far North could consider having fewer, larger libraries. However, given the size of the District and location of the main towns the six libraries provide good coverage for around 65-70% of the population, based on an estimation of the likely catchment of each library. The size of the libraries in Kerikeri and Kaitaia are sufficient but Kaikohe is not. The three smaller libraries are “Libraries should form the heart of probably on the small size. Should Kawakawa move to a new the community - as communication Hundertwasser centre this will make a significant improvement to that location. Paihia is problematic given that it is in a heritage building which gets more advanced people will limited any extensions. Longer term it may be that the Council should become marginalised from investigate using this building for other cultural purposes and combine the companionship and socialising” Paihia library with the I-Site and Council customer services on a new site. - Respondent, Online survey

Size of the library, location and the distance to travel are all aspects that impinge on accessibility of library services. Hours of opening are also a factor. Currently there is no Far North Library opened in the evening beyond 5pm. Given that many people work until 5.30-6.00pm the only opportunity for access to services is on a Saturday. Library hours on a Saturday are in the mornings, at a time when families may have children’s sport, or people are doing their weekend household chores. 152 of the 1049 respondents to the Future Libraries survey commented on the need for longer and/or different hours with longer week day hours (at least until 6pm), Sunday opening and longer Saturday hours being the most popular options.

Our ideas on how best to service the remaining 30-35% of the population are dealt with under section 5.6 below.

Building maintenance and refurbishment As important as the amount of space available is the décor. The library interior needs to be welcoming, light, clean and kept in good repair. There needs to be sufficient space for people based activities whether those are sitting and reading, studying at a table, meeting and working with others, or participating in an event. The Asset Management Plans currently do not detail any planned, regular refurbishment of the interior. Although assessment reports were to be commissioned by the Property Team it is our understanding that this has not yet occurred. We were told that depreciation funding is held by the IAM Group in renewal accounts but because there is no plan, mostly this has not been spent on regular maintenance. Procter Library is in need of a major refresh and redesign and we recommend that this is planned for in the next 2-4 years.

Kaikohe Library is more problematic. The 2015-2025 LTP indicates that a new civic centre and library is planned. However, the lead time on realising this would be at least three years and given that the decision to proceed has not yet happened, and the current building is being updated, it seems unlikely that a new centre would be a reality for at least five years, if not longer. Given this we believe it would be a good investment to make over the Kaikohe Library, reduce the amount of shelving and modernise the décor. This won’t increase the space but it will provide more usable space for people based activities and update the library which currently has a very 1970s feel to it.

Recommendations for improvement  Consider trialling opening one evening a week at the three largest libraries, and/or longer hours on a Saturday. Any such trial needs to be well publicised so that people are well aware that this is happening and is a trial.  Complete the Asset assessment for each of the library facilities and incorporate regular refurbishment and maintenance plans, with budget, into the Asset Management Plan.  Plan for a refurbishment/refresh for the Procter Library within the next 2-4 years.  Plan for and implement a ‘makeover’ of the Kaikohe Library as a first priority to reduce the amount of shelving and provide more space for people based activities.

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Document number A1931657 Page 39 of 54  In the longer term do a building brief for a new Kaikohe Library/Community Hub so that requirements are known ahead of any decision on a new building.

5.6 Programmes, events and outreach Programmes and events As noted earlier there is a lack of coordination around the programmes delivered from the six libraries and little or no recording of attendance or satisfaction with the programme. Providing targeted programmes for particular audiences (e.g. new mothers and babies) or to help grow particular skills (e.g. digital literacy skills), or focussed around particular events (e.g. Māori language week) encourages use of the library and can link users with the library’s collection.

The Libraries do not need to do this all on their own, or be experts in all the different aspects. Using community experts, volunteers and joining in with regional and national initiatives (which the Libraries already do to some extent) means piggy backing on the time and resources of others. This does require good coordination with someone appointed to have this responsibility. As a first step recording attendance figures should be required so that they form part of the reporting on library use.

Outreach A key question for Far North Libraries is how best to reach those people who do not have ready access to one of its six libraries. The Far North already supplies book loans to the 4 community libraries and the Broadwood Area School. These libraries are well located in areas not served by a full library service providing reading materials to members. There are both similarities and differences in how the community libraries operate. All of them with the exception of the Area School charge a membership fee. Apart from Russell they do not charge a fee to borrow books. They are all members of the Northern Libraries Network from which they borrow talking books and large print. One library pays its volunteers for 10.5 hours per week although there are additional voluntary hours on top of this. The Area School has a paid staff member and the other three are all voluntary. Hours of opening vary, with the Area School being available all the hours the school is open but shut during school holidays. Some of the libraries have free wifi and two have a computer for public use. Some buy new stock and others like the Area School rely on the books from the Far North.

Because of their strategic locations we think there may be a real advantage to explore with the community libraries other ways that the Far North could deliver services to these areas. Mangonui in particular is keen to expand its services and given the expected increase in population in this area over the next twenty years it is possible that a wider range of services should be provided. Possible ways would be for ‘library clinics’ to be held in the community libraries whereby Far North staff with digital devices help grow awareness of eServices which are available from Far North and show people how to download eBooks etc.

The community libraries do value their independence and one library expressed concerns that if they moved closer to the Council they might be shut down. Perhaps what is needed is a mind-set change to see them as a second tier of library service for small local communities where it is not possible to justify a full scale service.

As part of the outreach to smaller communities a mobile service could be established. We would recommend a van rather than a mobile bus (which requires a heavy traffic license) which could be fitted out with technology and wifi and a small collection of resources. This could be used at local events, and to visit schools and marae taking the library to the people. Books and other resources would be chosen depending on which location(s) was being visited. In this way the collection size is kept manageable and there is more room for the technology. The van and the working in with the community libraries could be part of an outreach plan designed to provide a fuller library service to 30-35% of people for whom one of the six libraries is not readily accessible.

Recommendations for improvement  Collect numbers of attendees at programmes  Better coordinate the programmes and events across the District.  Use local experts and community volunteers to run programmes and/or support library staff in their delivery.  Extend the reach of the library service to underserved areas by establishing an outreach van to take technology and resources to schools, maraes, and other local venues and participate in event days.  Explore the possibilities of working more closely with the community libraries

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Document number A1931657 Page 40 of 54

5.7 Promotions and marketing Marketing and promotions are at the two ends of the spectrum of service delivery. Marketing requires an understanding of what the different needs are of particular target groups, and developing or reshaping services to deliver on those needs. Promotion is at the other end and involves letting the community know what the library has for them and when particular programmes or events are happening.

We recommend that Far North Libraries works with the Council’s communications team to agree how the library can more effectively use the Council’s Facebook page and other social media outlets to promote services and investigate tools that will allow for the automation of the messages to go out to a range of media at the same time. If the library moves to a different library management system or uses Enterprise with Horizon, there should also be the ability to promote services via that channel.

The Far North Library produces booklists. Tools such as Library Aware can help with the automated production of these. Users can then sign up to receive new book lists targeted to their areas of interest.

The Library does little effective marketing. We would recommend trialling the use of Focus Groups made up of community members. These can be used either when the Libraries are thinking about developing or reshaping a new service, or it can be a focus group made up of a particular target user group to understand better what their needs are. If the Kaikohe gets a library makeover or in the future a new library it would be good to run a series of Focus Groups with the community to find out what is most wanted in a new or revamped facility. This approach builds community involvement in shaping services.

Recommendations for improvement  Work with the Council’s Communication Team to agree how the library can more effectively use the Council’s Facebook page and other social media outlets  Trial the use of Focus Groups to help shape services and seek community input into new developments  Explore tools which can automate the production and dissemination of new book lists

5.8 Staff The staff at Far North Libraries from what we have observed are hardworking and committed. However they are thinly stretched across the six libraries leaving little room for planning and developing services other than the role of providing resources for reading, viewing and listening. Staff do run some programmes but they are not coordinated across the whole district. The move in the past to combine Council customer service functions with library services made sense in trying to get the best use from the available people resource but it has embedded a perception that what librarians do is ‘customer service’ rather than seeing the role as “agents of active development for learning and engagement in the community”15. We are not suggesting that the roles should be split but rather that some additional resource will be needed if Far North Libraries is to realise the potential for adding real value to more of the people in the District.

Of prime importance is to have a leadership role that will be responsible for ensuring that the new Strategy is delivered and can pull the team together to work as one library service. The person needs to be able to work across Council teams, particularly the Community Development Team, and will have skills in planning and putting together simple proposals and reports that can succinctly make the case for what is needed to develop library services to their potential. This is not a criticism of the current manager who has a broad role and therefore not the time to give this work the focused attention that it needs.

Consideration should also be given to evaluating other roles in the organisation to see if the skills and capacity are there for some staff to have a district wide responsibility for services as is the case with the systems librarian role. This may mean providing some library assistant time to back-fill hours but this would be a more cost effective way of getting some professional knowledge and expertise built up that can be utilised across the district. Roles that could be developed in this way are around services such as children and young adults’ services, services to Māori, Local history and genealogy services, and Programmes and Outreach services. It is difficult to see that the Leadership role and the support for service development can be done within the existing resources. Ideally

15 Comment from an interview with Council’s Community Development Team.

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Document number A1931657 Page 41 of 54 the addition of 2-3 FTE equivalents is needed. If the library van and concept of library clinics is adopted there will be the need for an additional FTE at that time. The priority is the leadership role in the first instance with some backfilling of professional library staff who can take on district wide responsibilities on a part time basis as the resources become available.

Once the new leadership role is in place this is likely to require some changes to how the libraries are organised and a review of roles which may result in some restructuring should occur.

Culture We think it important that libraries embrace a learning culture as they are a part of the infrastructure that supports informal learning throughout life. This means not only the organisation providing training opportunities but individual staff taking responsibility for their own learning by trying things out, keeping abreast of trends and new developments, keeping up with reading so they can offer advice on what is good to read and using technology in their everyday lives so they can assist others. It will also be important that library staff gain a shared understanding of the changes needed to transform the service. Some of this is about changes in what they do and how it is done but there is also a need for attitudinal change about the role of libraries in today’s society. Both through the interviews and from reading some of the comments in the Residents’ surveys we detected some concern that the libraries are not as community focused as they might be, that not all users were welcome, and “they act like they own the library”. Once the new Strategy is adopted it will be vital that staff are involved in understanding what is expected from them in delivering the outcomes wanted.

Volunteers The role of volunteers in libraries has always caused ambivalence as there is concern that it is a way of reducing costs and replacing paid staff with community volunteers, as has happened in alarming numbers in the UK. On the other hand, community participation in supporting library staff to deliver services has benefits unrelated to possible cost savings. It generates support for the library as volunteers can share expertise, particularly in program delivery, and staff can use their knowledge and expertise on more value-add services. If volunteers are well organised and trained properly they can be a major resource for the organisation but it does take time initially to set this up. When resources are tight it makes sense to see what of the more transactional tasks can be given to community volunteers who will be happy to help with processing stock and shelving books and generally providing support to the librarians. For the relationship to work well, there needs to be clear policy at the outset which outlines the expectations of volunteers, the kind of tasks and the minimum number of hours etc.

Recommendations for improvement  Appoint a leadership role that will be responsible for ensuring that the new Strategy is delivered and can pull the team together to work as one library service. This is likely to require reviewing all the library roles and how they are organised to deliver on the new strategy.  As part of the above review, consider developing part-time roles/responsibilities for existing staff with the appropriate skills, knowledge and/or qualifications who can provide co-ordination and leadership across services. This might include children and young adults’ services, services to Māori, Local history and genealogy services, and Programmes and Outreach services.  Develop a policy and guidelines for the role of volunteers in Far North Libraries  Develop a learning, change adaptive culture essential to deliver on the new library strategy  Provide development opportunities for staff, particularly bringing though younger staff.

5.9 Finance As noted earlier Far North Libraries’ direct controllable costs are a much smaller percentage of their total expenditure than the benchmarked libraries, and this was particularly so around staff costs. Cost savings have been found in the past but it is our view that there is little room to reduce costs further without reducing service levels.

We know there is a tight fiscal situation in the Council and that libraries are only one of the demands for additional budget that the Council has to balance. However to provide an effective service, and particularly if Council wants to transform its services to deliver more value to residents, this will require some investment. Some of this investment will be operational and some will be capital. Once the new strategy is agreed, and the priorities

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Document number A1931657 Page 42 of 54 identified for what is needed to deliver on the strategy, then a ten year fiscal plan can be produced. However, not all the recommendations in this Service Delivery review require additional resource.

Revenue The ability for libraries to generate revenue from sources other than rates funding and user charges is difficult and no library that we are aware has secured ongoing sustainable funding of operations, as opposed to one off grants or sponsorship. Even sponsorship for programmes and events can be difficult and trust fund sources are often not available to Council run operations. One strategy is to partner with other organisation so that the combined resources of both can deliver greater value. Getting funding ‘in kind’ is more likely than cash in hand.

Revenue from user charges are usually limited to charges for placing a hold on an item, fines for overdue items and charges on certain items of stock such as DVDs. Very few public libraries place a charge on all materials. An alternative some years ago was the introduction of a bestseller collection. The rationale for this was less about revenue generation and more about accessibility as it was often difficult for users to find the latest book on the shelves, there being long reserve lists for new titles. The bestseller copies were reserve exempt but they did attract a charge for the convenience of not having to wait, or to pay a reservation charge. Given the levels of deprivation in the Far North (on the 5th quintile of the deprivation index) we do not recommend placing a charge on all materials. The bestseller concept could be explored in Kerikeri to see if that meet a customer need but it is difficult to see this working in other areas of lower incomes and employment.

Fines revenue is also somewhat problematic. Libraries want resources to be used and to be circulating. Encouraging people to return their items on time by sending automated reminder notices ahead of the date due and offering online renewals can result in lower fines income. Fines on children’s material can also be a significant deterrent and one which the majority of public libraries have removed or never had. If a parent cannot afford to pay the fine then they are most likely to prevent the child from coming back to the library. Many libraries have looked for innovative ways to remove the barrier of fines while at the same time accountably managing the resources of the library. One library in Australia removed all fines from materials and made a concerted effort to have the books returned. If after receiving two notices and two months had gone by, the book had not been returned, an invoice was sent for a lost book. If the book was returned at that point the member had to pay an administration fee. We do not know what percentage of fines for late materials get paid and what gets written off. What we do know from experience is that someone who racks up a large fine and who cannot pay this will usually not return to use the library. If we want to get the items returned and the borrower reading again then really thinking about why we have fines revenue at all is a good place to start.

Recommendations for improvement  Develop a ten year fiscal plan for investment once the new library strategy is adopted  Identify possible private sector partners or government agencies who have similar objectives and partner with them as a way of delivering more without needing additional rates revenue.  Remove fines on children’s material

5.10 Conclusion The Far North District has a solid foundation on which to build. It has good community support for libraries both from the community at large but also from those who use the libraries. However, the way people get information, learn, read Libraries could be the hub of the community and for pleasure, socialise and do business is changing rapidly due service the changing needs of society. The to the introduction of new technologies and the ubiquity of the nature of work is changing and so must we… ‘always on, always connected’ internet. Far North Libraries will school leavers should have a known learning need to change if it wants to stay relevant to all its community centre (The library) … that supports them to keep not just those who love and use libraries now. The on recreating themselves so they can adapt to recommendations for improvement in this Service Delivery Review will make for more effective services which will be the changing nature of work.” necessary if the libraries are to deliver more value to more - Respondent – Online survey people. The vision for the future is outlined in the new library strategy which is the companion document to the Service Review.

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Document number A1931657 Page 43 of 54 6. Section 17A Review As required by the Local Government Act 2002 (LGA 2002) a review of the governance, funding and service delivery mechanisms was done by the Consultant in conjunction with the project team. A template developed by the Far North District Council was used to assess various governance, funding and delivery options as defined in the LGA 2002. The process involved the following steps:

 Agree the criteria against which the different models would be evaluated. These were both financial and non-financial criteria and included: the costs of establishing a new model and the on-going effectiveness of operating costs; the impact on customers, communities and staff; the ease with which the new strategy could be implemented; the opportunities to leverage technology and innovation; and the benefits of scale from partnership opportunities.  Agree the different governance and funding options against which we would assess the criteria. Not all options were relevant and we agreed at the outset that the formation of a standalone Council Controlled Organisation for a unit the size of the Libraries was not an effective option. However, a Joint CCO with the Councils of Whangarei and Kaipara to for a Northland Libraries CCO was conceivable.  Agree the weightings for each of the criteria. This indicated the relative importance of the factors and the weightings needed to total 100%.  The project team then looked at each of the criteria in turn and documented their assumptions against each of the different governance and funding options. This rationale is outlined in Appendix 8.  The final stage in the process was to score the criteria on the template provided. The scoring was a 1 to 5 scale with 1 being the lowest or worst outcome and 5 being the highest or best outcome. The scoring template then calculated the score for each option using a weighted average methodology. This is attached as Appendix 9.

The governance and funding options and their relative scores are below:

Governance and Funding by Far North District Council Governance and Funding through a Joint Committee or other devolved governance arrangement Status Quo Joint CCO Another local Other Agency: a Joint CCO Another local Devolvement of assets authority Trust authority to Community 73.2 60.4 49.2 56.4 56.8 41.2 31.2

The Status Quo, which is in house governance and management, was seen as the best option currently in terms of delivering the outcomes the Council wants from its libraries. There are no establishment costs although there will be investment needed if the recommendations from the Service Delivery Review and the new Strategy are agreed. The Status Quo offers the community the best opportunity to influence and participate in designing services, although devolution to a Trust could also provide greater community ownership. However, a Trust has more potential for capture by particular interest groups if not properly set up.

The next best option would be a Joint CCO with its own Board with governance and funding retained by the contributing Councils. In the longer term this may be an option to explore once the Far North has made the changes needed as a result of this review and the new Strategy. There may well be economies of scale once the establishment costs have been depreciated and there would certainly be greater opportunities for staff in a larger organisation.

In New Zealand the Status Quo is the preferred model for governing and funding libraries. Horowhenua District Libraries was run as a Trust for a number of years but has recently been folded back into the Council. Another model which have been tried in the past included operating at arms-length as Business Unit of a council (Tauranga - which never really operated as intended). In Australia there are a number of Councils which have banded together to form an entity similar to the Joint CCO model in New Zealand. Yarra Plenty16 in Melbourne is an example of such a regional library system which has a CEO and a joint Board, comprising representatives of the Council.

The recommendation is that the Far North District Council retain the Governance, funding and delivery in-house.

16 https://www.yprl.vic.gov.au/about-yprl/

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Document number A1931657 Page 44 of 54 Appendices Appendix 1: List of interviewees Elected Members Bronwyn Hunt, Community Board Member Felicity Foy, Councillor John Carter, Mayor Mike Edmonds, Community Board Chair Tania McInnes, Deputy Mayor Willow-Jean Price, Councillor Council staff Shaun Clarke, CE Dean Myburgh, GM, District Services Vickie Begbie, Project Manager Bill Lee, Community Development Ana Mules, Community Policy and Development Edina Harris, Community Development Suzanne Duncan, Community Development Aya Morris, Community Development Ted Wihongi, Community Development Leslie Trussler, Policy Advisor Kathryn Ross, GM Strategy and Planning Janice Smith, CFO Roger Ackers, CIO Jacine Warmington, Manager Community and Customer Services Council staff - Library Sabine Weber-Beard, Systems Librarian Nicola Smith, Kawakawa Library Jessica Tuckerman, Kaikohe Library Helen Yuretich, Kaitaia Library Rae Baker, Paihia Library Adrienne Korach, Procter Library Jill Jordan, Technical Services Rina Parangi, Kaitaia Chris Willett, Kaitaia John Haines, Kaitaia Anna Bullen, Kaeo Emma Saville-Burley, Kaikohe Jakki Vance, Kaikohe Fiona Jenkins, Procter Roxanne Harrison, Procter Beth Ashworth, Procter Reece Wijohn, Kaitaia Library Nina Gobie, Te Ahu Leonard Parangi, Kaikohe Library External Ana Heremaia, Akau Ruby Watson, Akau Glennis Coote, Tasman District Vicki Carlyon, Selwyn District Jeannie Skinner, National Library of NZ Linda Hayfield, Thames Coromandel Lisa Salter, Kaipara District Libraries

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Document number A1931657 Page 45 of 54 Paula Urlich, Whangarei Libraries Mark Osborne, CE Te Ahu Youth Council Blair Kapa Rawhiti Erstich-Coles Ivan Erstich-Coles Willow Rawiri Damian Windelborn-Rawiri Natasha Williams Aroha Puru Community Libraries Claire Deighton, Rawene Library Ngaire Morey, Broadwood Area School Collen Bottrell, Russell Library Lauren Barclay, Mangonui Library Lynne Stewart, Kohukohu Library

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Document number A1931657 Page 46 of 54 Appendix 2: Map of population areas

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Document number A1931657 Page 47 of 54 Appendix 3: Future Libraries Survey results There were 1049 Responses

Question One: How old are you?  77 aged <13 years  21 aged 14-17  27 aged 18-25  83 aged 26-40  410 aged 41-65  416 aged 65+  15 did not answer

Question Two: Which community do you live in? Submitters were allowed to self-identify their community.  104 declined to answer  11 advised they lived outside the district  239 indicated they live in the Te Hiku Ward  515 indicated they live in the Bay of Islands-Whangaroa Ward  124 indicated they live in the Kaikohe-Hokianga Ward  56 provided answers that did not indicate where they resided.

Question Three: How often do you visit the library?  35 never use the library  72 use the library once or twice a year  131 use the library every few months  317 use it about once a month  471 use it once a week or more  23 did not answer

Question Four: Location of Libraries Used  287 use the Kaitaia (Te Ahu) Library - 176 use Kaitaia library exclusively  240 use Kaikohe Library - 86 use Kaikohe library exclusively  151 use Kawakawa library - 39 use Kawakawa library exclusively  73 use Kaeo library - 14 use Kaeo exclusively  633 use Kerikeri library - 320 use Kerikeri exclusively  149 use Paihia library - 7 use Paihia exclusively

Question Five: Ethnicity Submitters were allowed to self-identify their ethnicity. Many identified more than one ethnicity.  142 declined to answer or answered without specifying ethnicity  754 identified as being New Zealanders or some form of European descent  137 identified as being of Māori descent  Other ethnicities included Australian, Samoan, Fijian, Chinese, Japanese, Asian, Canadian, American, Hispanic, Tongan and South African.

Question Six: Libraries focusing on reading, learning to read and people telling their stories.  163 respondents want a better selection of children’s books  135 want a better selection of books for teens  116 want a better selection of books in Te Reo  123 want a better selection of graphic novels  251 want more eBooks and eAudiobooks

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Document number A1931657 Page 48 of 54  230 want more DVDs  204 want Book Clubs  99 want Borrowable Playstation/Xbox/Wii games  145 want learning to read programmes for adults  191 want children’s reading programmes  245 want a place to tell/keep your stories/community stories  327 want old local content online eg newspapers, photos

Question Seven: Libraries with spaces adapted to your needs, from quiet reflection to activities and socialising  295 users want updated, more attractive library spaces  163 users want a new multipurpose facility  193 users want longer or different opening hours  408 users want cafés in libraries  242 users want a place to work and meet  302 users want a place to hold activities, gatherings and events  302 users want a place for community activities and displays  462 users want a place to display local art and culture  393 users want events and programmes for adults  322 users want events and programmes for children  234 users want a youth space

Question Eight: Longer or different opening hours 152 submitters made recommendations for opening hours (some made more than one recommendation)  6 want a late night each week  33 want longer weekend hours  39 want libraries to open on Sundays  24 want libraries to be open all day on Saturday  57 want libraries to open late each night (at least 6pm – some suggested as late as 10pm)  2 want after-hours access for groups or events  2 want 24/7 access  6 want longer hours generally  1 wants Rawene to open daily  1 wants shorter hours  5 would like earlier opening (from 6am)  2 recommended opening later (10am) and staying open later (at least 6pm)  1 would like the library in Paihia to open when ships visit and over long weekends  1 would like the Paihia library to stay open at lunchtime

Question Nine: A hub for digital technologies, offering access to opportunities for creativity and innovation  286 users want more computers  327 users want more help to learn to use computers  322 users want help to use phones and tablets  206 users want help with online job seeking  117 users want coding clubs  104 users want gaming workshops  113 users want pop-up virtual reality labs  161 users want audio/video recording and editing studio  59 users want gaming consoles to use in libraries  351 users want opportunities to try out new technologies, e.g. VR headsets, 3D printers

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Document number A1931657 Page 49 of 54 Question Ten: The everywhere library provides access to library services wherever you are in the district  296 users want a mobile library providing both books and technology  460 users want ordering what you want via the web  309 users want pick up and drop boxes around the district to allow you to collect and drop off books  164 users want pop-up libraries  166 users want library clinics or library days around the district  190 users want library help online and by phone  289 users want access to eBooks and eAudiobooks  340 users want access to online encyclopaedias and paid databases, e.g. newspapers, Ancestry.com

Appendix 4: Base data for the benchmark libraries

Thames Base data as at 2015-16 Far North Selwyn Tasman Coromandel Population 55734 53830 47898 26181 Land area (km2) 7324 6381 9616 2207 Total libraries 6 5 4 3 Community libraries 5 1 4 3 Total opening hours per week 259.5 187.0 149.5 127.5 FTE's 16.9 21.20 27.55 8.80 FTE casuals 0.04 1.35 1.30 1.00 Stock 131,903 90,005 153,281 38,845 Registered Users 11,924 29,386 41,730 13,524 Active borrowers 9,903 9,812 23,048 13,524 Registered this Year 1,643 2,510 1,974 1,163 Total issues 414,266 349,197 619,276 220,117 Physical Visits 532,228 278,271 468,746 Salaries/wages & benefits $957,163 $1,279,009 $1,596,936 $ 435,001 Total operating expenditure $2,956,979 $2,502,319 $3,479,446 $1,356,298 Total sundry income $169,168 $65,303 $261,041 $75,321 Library materials acquisition cost $247,493 $376,270 $413,069 $129,879

Appendix 5: Kōtui offer  A full support desk which operates over all Kōtui library opening hours.  A network connection to a single point at each council which connects the council, via the council firewall and the Kōtui firewall, to the Kōtui centre. Each party controls their own security and access at their firewalls.  Centralised hosting of hardware and software, including managing all upgrades.  Discovery layer which enables a single search across all of a library’s resources including subscription databases and more seamless access to eBooks.  Training for all incoming participants across the range of products and includes specialised training for cataloguing, acquisitions and serials.  BlueCloud Analytics which enables the manipulation of large amounts of statistical data, regular and customised reports which can be delivered in Excel and which can include graphical elements.  BlueCloud visibility project which is designed to surface a library’s holdings in a google search through a linked data process so that when a user searches they get local links near the top of a search alongside Amazon.  Customer notifications via email, sms or print.  Catalogue maintenance for Te Puna / OCLC holdings handling is provided centrally. Additions to the catalogue are processed weekly and the full holdings of Kōtui libraries are replaced every 4 months.

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Document number A1931657 Page 50 of 54  Universal SIP2 connection. As libraries move to RFID, additional access to SIP2 connections with the library system are normally required and these are expensive. Kōtui’s universal licence means that connectors can be added without extra fees.  Secure backup service and a full disaster recovery scheme.

Other benefits include communication and knowledge sharing between libraries. There are active Kōtui listserv groups, annual managers’ meetings (attendance costs are paid for by Kōtui), and an active Kōtui Staff Intranet.

Appendix 6: List of documents consulted Activity Management Plan , Far North District Council - 2009 Activity Management Plan, 2015-2025. Part C: Managing our activity Libraries. FNDC, 2014 (Not Complete) Asset Management Plan 2015-2025. Part C: Managing our assets - Property and Community. Association of Public Library Managers. Library Statistics 2013-14, 2014-15, 2015-16 Benchmark libraries’ Annual Reports, Resident Surveys Community Development Framework. Far North District Council, 2015 Discussion paper 2016/05 A Far North perspective on tackling poverty. Tackling Poverty NZ tour, McGinnis Institute, 2016 Far North District Council. Annual Reports for 2014-15, 2015-16, 2016-17 Far North District Council. Long Term Plans 2012-2022 and 2015-2025 Far North District Council Annual Plans for 2016-17, 2017-18 Far North District Council. Residential Opinion Survey Reports for 2014, 2015 and 2016. Prepared by Versus Research Far North Organisation Structure Far North District Council Website Far North District Council. Adopted Fees and Charges 2017-18 Far North District Council various internal data and statistics: Financials, Collections, Borrowers, Loans, Events/Programmes, Library Space, Staff, Visits, Acquisitions, Technologies, Reporting etc. Far North District: Demographic Projections, 2013 to 2043. Prepared by .ID based on data provided by Stats NZ combined with assumptions built from consultation with local experts. Grow Kaikohe: Akau communities. Proposal June 2017. Guidelines, standards and outcome measures for Australian Public Libraries. APLA:ALIA, July 2017. ID Population Forecasts - http://profile.idnz.co.nz/far-north Library Service Delivery Review – Brainstorm 29-1-16 Library Policies Our District: a social and economic profile of the Far North. Far North District Council, 2016 Public Libraries of New Zealand: a strategic framework 2012-2017. Local Government New Zealand: Public Libraries of New Zealand, 2012. Public Libraries of New Zealand – Future Challenges and Opportunities in the Library Sector Socioeconomic deprivation profile. http://www.ehinz.ac.nz/indicators/population- information/socioeconomic-deprivation-profile/ Standards for New Zealand Public Libraries. LIANZA, 2004 Statistics New Zealand. Census data for 2013. Tai Tokerau Northland Economic Action Plan. February 2016 Tai Tokerau Northland Growth Study: opportunities report February 2015. Prepared by Martyn Jenkins. Wellington, MBIE and MPI, 2015. Te Hiku Well Being Report: Te Oranga o Te Hiku. Te Hiku Development Trust, 2014

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Document number A1931657 Page 51 of 54 Appendix 7: Indicative UFB rollout timetable

City/town/area Partner Premises covered Forecast completion date Ahipara Chorus 534 2022* Awanui Chorus 171 By 2022^ Baylys Beach Chorus 293 By 2022^ Dargaville NFL 1933 2018 Dargaville Fringe NFL 32 By 2022^ Hihi Chorus 200 By 2022^ Hikurangi NFL 579 2017 Kaikohe Chorus 1543 2019* Kaitaia Chorus 2041 2020* Kaiwaka NFL 200 2020 Kerikeri Chorus 2540 2019* Laings Beach/Waipu Cover Chorus 545 By 2022^ Mangawhai Heads NFL 1988 2020 Mangawhai Village NFL 615 2019 Marsden Point/One Tree Point NFL 1059 2018 Matapouri Chorus 308 By 2022^ Maungakaramea Chorus 128 By 2022^ Maungatapere Chorus 89 By 2022^ Maungaturoro NFL 377 2020 Moerewa/Kawakawa Chorus 1010 2018* Ngunguru Chorus 473 By 2022^ Ohaewai Chorus 127 By 2022^ Opononi Chorus 504 By 2022^ Opua/Okiato Chorus 145 By 2022^ Paihia Chorus 1314 2021* Paparoa NFL 133 2021 Portland Chorus 66 By 2022^ Pukenui Chorus 199 By 2022^ Rangitana Chorus 136 By 2022^ Rawene Chorus 393 By 2022^ Ruakaka NFL 1280 2019 Ruawai NFL 256 2021 Russell Chorus 615 2022* Taipa Chorus 142 By 2022^ Taipa Bay-Mangonui Chorus 1388 By 2022# To Kopuru Chorus 250 By 2022^ Tokerau Beach/Whatuwhiwhi Chorus 777 By 2022^ Waikaraka NFL 157 2020 Waipapa Chorus 147 By 2022^ Waipu NFL 472 2017 Waipu South NFL 116 By 2022^ * Forecast completion dates may change, due to the acceleration of the build programme (to be completed by the end of 2022) and the UFB2 expansion requirements. The exact scheduling is yet to be determined. # These UFB towns/areas have been accelerated to be completed by the end of 2022 ^ Deployment timing for these towns/areas has not yet been established as of August 2017.

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Document number A1931657 Page 52 of 54 Appendix 8: Section 17A rationale for delivery options FAR NORTH DISTRICT COUNCIL SERIVICE DELIVERY ASSESSMENT

Governance and Funding by FNDC Governance and Funding through Joint Committee or other shared governance arrangement Delivery by Joint Service Delivery Options Status quo: Governance another Devolvment of Assets Delivery by Delivery by another Delivery by another Contract with Delivery by Delivery by another funding and delivery in Delivery by Joint CCO Delivery by Joint CCO agency or to Community Groups FNDC CCO local authority agency (TRUST) another FNDC CCO Local Authority house person Private LOS in place agency Sector s.17a reference a b(i) b(ii) b(iii) b(iv) c(i) c(ii) c(iii) c(iv) c(v) Service Level O&M CCO Creation of a Agreement in place, (Citycare) O&M CCO (Citycare) Creation of a Keeping Governance Via Service Level Handover of assets, standalone service with contract for service, Joint Full Service Full Service CCO Keeping the services in standalone and Funding, Strategy Agreement (Prof Joint Contract community run, LOS in Description of Option own Board, jointly FNDC ownership of procurement CCO (Wellington) house service with its but giving service Services or all or Alliance place for Council owned by FNDC, Kaipara assets, but need to for services (Wellington) Asset Owning own board delivery to Trust services) funding and Whangarei negotiate strategy, Asset Owning CCO(Watercare) policy and funding CCO(Waterca Financial Benefits Significant establshment Some establishment costs Some establishment costs Significant establishment costs. Would need because of need for because of need for costs, similar to setting up No establishment costs community consultation, community consultation Same as b(ii) Same as b(iii) community consultation Joint CCO. Ned for Establishment costs: costs of changing legal setup, alignment of and aligning of service and aligning of service community consultation the model services possible staff costs policies policies Expectation that economies Costs similar to Trust can fund raise - could of scale would deliver inhouse. May get mean FNDC could fund at Investment needed to get efficiencies. However, needs current levels with no savings from Same as b(ii) Same as b(iii) a more effective service to be offset by reduction increase. Service Save $$$ as volunteer run Effectiveness of operating costs- back in Council of corporate consistencies in effectiveness would need could not retain current savings and/or additional costs and other overhead service? to be managed through level of service

Non Financial Benefits Possible degradation of Service is focused on Same impact and Wider availability of staff Customer impact - service quality, service over time. Not library but doesn't have Degradation of improved if new strategy resources; should be an experienced in providing access to other resources Same as b(ii) Same as b(iii) meets needs customer service is implemented improvement service to rural which currently support, communities e.g. customer services More arms length from Potentially community Direct community Likely to operate with more Communities Impact - level of public FNth communities. could have more input but influence possible of business approach leading Community gets to run Complaints may still come could also be captured by Same as b(ii) Same as b(iii) interest, local knowledge, participate in to less community input and through LTP processes, to FNDC. Not obvious to groups with particular the libraries decision making influence surveys etc. community who is running agenda Retention not an issue. More opportunities for Similar to in house - Could be less attractive as employer. No cross Council Staff - recruitment, retention, Development of staff is staff development. although some FNDC opportunties to make Same as b(ii) Same as b(iii) Loss of jobs for staff an issue. Recruitment Access to a wider range staff in tech services development, increased skill wider contribution as could not be needed opportunities are limited of skills currently May agree to the strategy - Strategy may not be Requires agreement by only if the money was Would have to approve Would have to Strategy not delivered. This accepted by new Board. other Council to Implementation within upfront. Overtime Trust SOT but strategy approve SOT but option means that Council Strategy - Ease of implementation Definitely becomes more implement our strategy. FNDC control would want to set their unlikely to be delivered strategy unlikely to be has decided to get out the complex and likely to need Possibly need to own agenda. Strategy library as a service of review compromise in some areas as is delivered as is diluted Council APNK provides Shared costs for technology May have more innovation. Could have opportunities for new Maybe loss of existing opportunity to leverage Technology and innovation - access to a wider range of APNK; other Council not sponsorship and external technology; FNDC retains Same as b(ii) Same as b(iii) Limited No improvements Opportunties to leverage new digital and technology skills, regarded as leaders in this funding for technology - a ability to prioritise CCO may have more broader area lot depends on who is on technology developments contacts the Trust Council is regarded as a Could have higher Harder to partner good partner; takes time leverage through being a May not be seen as good a Partnership opportunities - benefits of locally but could get to build relationships; CCO, partnerships at a partner as FNDC but may Same as b(ii) Same as b(iii) Limited scale access to some district FNDC can select the best local may be a little more have more local partners? wide partnerships partners difficult

Note: all options other than the status quo would see Council customer service and library services split - this may increase cost for FNDC and reduce synergies and opportunities to work with other Council teams such as Community Development

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Document number A1931657 Page 53 of 54 Appendix 9: Section 17A weighted scoring of service delivery options FAR NORTH DISTRICT COUNCIL SERIVICE DELIVERY ASSESSMENT

Governance and Funding through Joint Committee or other shared Governance and Funding by FNDC governance arrangement

Devolvement of Assets Service Delivery Options Status quo: Governance Delivery by another Weighting of Delivery by another Delivery by another to Community funding and delivery in Delivery by Joint CCO agency (Private Sector Delivery by Joint CCO options local authority Local Authority Groups/Trusts house TRUST LOS in place

s.17a reference a b(ii) b(iii) b(iv) c(ii) c(iii) c(v)

Service Level Keeping Governance, Creation of a O&M CCO (Citycare) Keeping the services in Agreement in place, Funding, Strategy, Via Service Level Handover of assets, standalone service with Full Service CCO house with the contract for service, policy and delivery Agreement (Prof community run, LOS in Description of Option Weighting own Board, jointly (Wellington) recommendations from FNDC ownership of inhouse but Services or all place for Council owned by FNDC, Kaipara Asset Owning the review assets, strategy, policy outsourcing selected services) funding and Whangarei CCO(Watercare) and funding functions

Weighted Weighted Weighted Weighted Weighted Financial Benefits Score Avg Score Avg Score Weighted AvgScore Weighted AvgScore Avg Score Avg Score Avg Establishment costs: costs of changing the model 8.00% 5 8.000 1 1.600 2 3.200 5 8.000 1 1.600 2 3.200 2 3.200 Effectiveness of operating costs- savings and/or additional costs 12.00% 3 7.200 3 7.200 2 4.800 3 7.200 4 9.600 2 4.800 4 9.600

Non Financial Benefits Customer impact - service quality, meets needs 20.00% 5 12.000 4 9.600 3 7.200 3 7.200 4 9.600 3 7.200 1 2.400 Communities Impact - level of public interest, local knowledge, participate in 10.00% 4 8.000 3 6.000 3 6.000 4 8.000 2 4.000 3 6.000 2 4.000 Staffdecision - recruitment, making retention, development, increased skill 10.00% 3 6.000 4 8.000 2 4.000 2 4.000 4 8.000 2 4.000 1 2.000 Strategy - Ease of implementation 20.00% 4 16.000 3 12.000 3 12.000 3 12.000 2 8.000 1 4.000 1 4.000 Technology and innovation - Opportunties to leverage new 10.00% 4 8.000 4 8.000 3 6.000 2 4.000 4 8.000 3 6.000 1 2.000 Partnership opportunities - benefits of scale 10.00% 4 8.000 4 8.000 3 6.000 3 6.000 4 8.000 3 6.000 2 4.000 Total Combined Total 100.00% 73.20 60.40 49.20 56.40 56.80 41.20 31.20

Scale of 1 to 5 where 1= lowest/worst and 5 = highest/best

Page | 54 September 2017

Document number A1931657 Page 54 of 54 Far North District Council

Future Libraries

Far North District Libraries Strategy 2018-2028

Document number A1931653 Page 1 of 9

This strategy has been developed by the Far North District Council staff based on work done by Sue Sutherland Consulting. The company was engaged to review Library Service Delivery, undertake a Local Government Act 2002, Section17A review, and provide a draft strategy for future services.

October 2017

Document number A1931653 Page 2 of 9 Introduction population identify as Māori and 50% of the district’s population live in the most The way people access information, learn, read for deprived national quintile category. The high pleasure, socialise and do business is changing deprivation is more concentrated in the north and rapidly. This is due to the introduction and uptake west of the district than in the east. of new devices, apps and interactions made possible by the ‘always on, always connected’ The proportion of over 65yr olds is projected to internet. Far North District Libraries recognises the increase in all communities and the proportion of need to strike a balance between sustaining 15–24yr olds, and 25-45yr olds continues to be traditional services for its members and playing its lower than might be expected given the number of role in staying relevant and providing children born and/or living in the district. This age opportunities from these technologically driven cohort is tending to relocate out of the district for advancements to all in the community not just work and education, and lifestyle choices not those who love and use libraries now. available in the Far North.

The Council provides six libraries to serve the These demographic trends have led to a diverse learning, literacy and recreational needs of the community with different needs. Far North district. There is good community support both District Libraries can make a difference to these from those who use the libraries and, to a lesser needs by: extent, from the community at large. However,  Contributing to higher levels of educational there remain many in the community for whom achievement and literacy – including digital the library is inaccessible, does not deliver in a way literacy that meets their needs or who have had little or no  Providing opportunities for people’s learning, exposure to what opportunities our libraries can leisure activities and employment offer them.  Utilising the growing digital connectivity to mitigate the need to travel for library services This ten year strategy has been architected based  on a comprehensive service review and Contributing to digital inclusion by making assessment of the trends, challenges and technologies and Wi-Fi available and opportunities that the Library can provide to supporting digital learning, literacy and individuals, families and the community. It strikes identity. a balance between affordability and service provision, recognising that partnership, alliances Our plan and community engagement is the primary mechanism to make the objectives in the strategy The Future Libraries Strategy outlines where we achievable. need to focus our energy and resources together in order to be successful. The plan identifies a number of priorities under three Strategy Focus Our Community areas for investment over a ten year period as well The Far North is New Zealand’s northern-most as actions that can be undertaken in the next two district stretching over 200km north to south and years. Together these will deliver a library service with a land area of 7324 square kilometres. The which is responsive to our community needs in a population at 60,789 (2015), and projected to rapidly changing world. grow to 62,228 by 2043, is spread across a largely rural district with only three towns having a The plan is consistent with the Council’s 2017 population greater than 4000 and less than 5500. Strategic Priorities and Community Outcomes which include:

 Better data and information Over 40% of the  Empowering communities  Affordable core infrastructure  Improved Council capabilities and performance

Document number A1931653 Page 3 of 9  Address affordability  Liveable communities that are healthy, safe, connected and sustainable  ‘Can do’ communities prepared for the unexpected  Proud, vibrant communities  Prosperous communities supported by a growing economy

A survey provided an opportunity for local residents to feed in their ideas for how libraries should respond to the changing environment and this has informed the development of the plan.

Document number A1931653 Page 4 of 9 Vision 2018 - 2028 “…. The nature of work is changing and Far North District Libraries are places that services Communities, so must we… school leavers should have develop learning, literacy and identity and enables opportunities. a known learning centre (The library) … that supports them to keep on Our purpose is to provide resources, spaces, technologies and recreating themselves so they can adapt services that enable individuals to learn, be informed, develop personally and contribute to society. to the changing nature of work.” - Respondent – Online survey Principles

Some underpinning principles have guided the development of the strategy. We will:

 Be responsive to local needs at the same time working as one district network  Partner with others to deliver services and stay current with content and technology  Have a strong focus on customer service, community engagement and enabling opportunities

Strategy areas

Our strategy has three key focus areas for development over the next ten years:  Servicing Communities;  Learning Literacy and Identity and;  Enabling Opportunities

Our response indicates how we intend to deliver on these elements. Some we can do within the first two years, others will take time and investment to achieve. A work programme will be developed annually.

Servicing Communities

Public libraries offer unique value as civic spaces often acting as the hub of communities. The trend is to bring together libraries with other community, cultural or development activities that contribute to creating great places and building community connections and opportunities.

Libraries provide accessible and open places for meeting, learning and inspiration. Increasingly they will become places for creativity and participation where people come together to develop ideas and create new knowledge. Outcomes we want:  Connecting Far North communities Currently there are remote Far North communities with a mobile service that are a considerable distance from the six main  Create library zones and spaces libraries and also suffer from internet connectivity that cater for differing needs or mobile coverage challenges. To connect to  Well maintained fit-for-purpose these communities, our strategy provides for a facilities new mobile library service and a schedule to bring select resources to these communities.

Document number A1931653 Page 5 of 9  Refresh Procter Library interior, repaint the Our libraries need to cater for needs ranging from exterior and alter fit-out to create better quiet places for study and reading to social spaces zones for meeting and working with others. Libraries  Work with the Hundertwasser Charitable Trust are used to providing children’s activity space but Centre to develop library options for there is also a need for activity areas to run Kawakawa programmes for adults. Good design is essential  Partner to supply a mobile library service for so that differing needs can be accommodated remote and underserved communities without impinging on each other. The physical libraries in our district vary in their condition, size and suitability for modern service delivery.

Our response:

 Refurbish Kaikohe Library. In the longer term, work with local initiatives to determine the appropriate development plan

Learning, Literacy and Identity

Reading, literacy and increasingly digital literacy are fundamental skills without which life is more difficult and many doors are closed. Research has shown there is a strong link between reading for pleasure and educational achievement. Students who enjoy reading have consistently higher scores in reading, maths, logical problem solving and Outcomes we want: attitude (Growing Independence report, 2006). An  Increased traditional and digital OECD research report from 2002 reported that literacy reading for enjoyment is more important to a  Get children onto the literacy child’s educational success than their parents’ ladder early socio-economic status.  More people able to read and enjoy Our strategy recognises the rich cultural and reading historical Identity that the Far North possesses.  Great collections for reading, Libraries are a key resource to capture, maintain listening to and viewing and promote that identity. We will provide the  Capture, maintain, present and means and promote the benefits of Far North promote the Far North’s Identity residents sharing their past and stories with us to  build our collective identity. Access to the stories of the past  People telling and recording their Our response: own stories

 Deliver district wide programmes for pre- schoolers that encourage language The ability to read in one’s own first language is development and gets them ready for reading also crucial. Encouraging more people to speak  Run school holiday programmes and read Te Reo means having more books and e-  Work with other literacy agencies to support books in the language for both adults and children. reading for young people and adults who have For those who migrate to the Far North and who reading difficulties speak languages other than English or Māori  Shape our collections so they are relevant to having reading materials in their language is also our different communities’ needs important to their identity.

Document number A1931653 Page 6 of 9 Our response:  Invest in staff training, specialisation and  Increase our Te Reo collections resources to ensure we can articulate and  Identify and work with new migrants to present the main trends and benefits of these determine the need for other language new technologies without having to materials continually fund and support the rapidly changing technologies themselves.

People want to know where they come from and how their community has developed. In the past the primary way for stories and history to be recorded was by writing or taking photographs.

Today’s medium is digital and the creation and recording of today’s stories, which will become tomorrow’s history, is important if we want to make sure our grandchildren have access to their history.

Our response:  Partner with organisations that will allow us to capture, organise, present and promote our Outcomes we want: cultural and historical identity  Partnerships to showcase  Extend our local history archive in the Procter technologies Library to include oral and digital stories  Trained staff who understand the  Digitise our unique material changing technologies and benefits  Provide resources to get the most from the digital world for opportunity creation and Enabling Opportunities realisation

 Improved job and development Personal computers and digital tools are already opportunities part of our libraries, providing access to the  Fostering creativity, innovation and internet for learning, and living. Getting a entrepreneurship qualification, applying for a job, running a business or inventing something and becoming an entrepreneur now happen online. New technologies are beginning to change the way we Having access to different devices and applications learn, earn and have fun. Virtual reality, artificial is only one aspect of being a digital citizen. intelligence, augmented reality, 3D printers and Knowing how to use a device, which software or robotics are just the latest emerging of devices application you need, how to keep safe online, that are changing the way people will experience what sites and information you can trust, how to and interact with the world. A trend in libraries is download eBooks and search for the right piece of for Maker spaces or digital labs which provide information are skills that everyone needs if they opportunities for people to experience and learn are to get the best from the digital world. The how to use these technologies for innovation. For 20/20 Trust has partnered with libraries to provide young people in particular, access to these tools the Stepping Up programme and their recently can lead to employment and provide a sense of published Digital Inclusion Manifesto (2017), creativity, purpose and challenge to their which is supported by the Public libraries of New recreation and development. Zealand, outlines what is needed to ensure Our response: everyone has the tools and skills to participate.  Investigate and seek sponsorship and partners to showcase different digital technologies and capabilities in our Library spaces Our response:

Document number A1931653 Page 7 of 9  Continue to provide one-on-one support and advice for individuals needing help to use library technologies and their own devices  Use new technologies for improved service provision  Work with partners in our communities to provide digital literacy programmes  Work with other agencies to promote and provide access to digital services such as digital job centres, creative and digital skills such as coding and design

Making it easier for people to use library services independently gives users choice and frees up staff time for more value added services. Almost 40% of public libraries in New Zealand have moved to RFID technology for self-check for customers which also provide online methods of payment. This technology has benefits in the management of collections as well.

In our goal to maintain a one region libraries network focus, and recognising the rapidly changing face of user and library technologies, we will revisit the case for exploring a regional alliance libraries model in 2021 so that we can benefit from shared resources, services and purchasing power.

Following this review in 2021, which will include a technology component, decisions will be made regarding migrating to, and implementing newer technologies that may better serve Far North Library patrons and community members.

Until then, investment will be focussed on quality content, connecting communities to services and ensuring staff can better serve the public.

Document number A1931653 Page 8 of 9 Success factors Offering opportunities for community volunteers with expertise to support services and To deliver on our vision and focus areas we will programmes extends what library staff are able to need: do but does require good coordination.

 Increased staff capability Of particular importance will be partnering with  Partnerships with others other literacy, learning and social services provides  Sustainable services with similar goals for greater impact.

Increased staff capability We will continue to take advantage of national and

Strong and focussed leadership is required if we regional shared services, building on those we already have with Northland libraries and the are to achieve the changes needed to deliver on our ten year Strategy. The appointment of a National Library.

District Librarian is a priority. What we want: What we want: Sustainable services  Being able to use library services from Being anywhere able to use library services We will need to invest in training and Wise investment will be needed to deliver on this  Easyfrom to useanywhere online services specialisation of staff who are resilient, adaptable plan. In collaboration with other council officers  More Easy content to use inonline a digital services format for and have the digital skills not only to help others we will develop annual work programmes against download More content and access in a digital format for access content and services, but can articulate our ten year strategy with prioritised projects and  download and access how it can be used to create opportunities. budget allocations supported in the long term More people joining and using  More people joining and using plans. libraries libraries Libraries are learning organisations and as such we  The library coming to you  The library coming to you aspire to have a learning culture that embraces a We will seek sponsorship and financial partners for community engaged service model. We will select digital services that can deliver economic provide opportunities for staff to upskill and and employment benefits to individuals. expect that they will want to keep abreast of new things happening in the wider sector. Part of sustainability is good stewardship and reporting. We will develop meaningful indicators It is vital that our core library management system that measure the success of our Strategy and and other technologies keep up to date with the report on progress quarterly. latest developments for discovery and management of our data. As part of the 2021 service and technology review we will assess the Outcomes we want core library management system options. Our  The library team has the capacity and catalogue and content will be incrementally capability to deliver upgraded until the 2021 review.  Keeping current and creating

opportunities through partnerships and Partnership with others programmes Some of our aspirations are ambitious and we will  Accountability for implementation of the not achieve them working on our own. Leveraging 10 year strategy others’ expertise and tapping into existing community, government and 3rd party technology, learning, literacy and development programmes will be critical in delivering the library strategy “There are a number of opportunities to whilst keeping costs down. partner up with community organisations to offer programmes: either a mentor We want to involve local communities in the partnership (partnering people wanting design and delivery of future services. We will tech help with community/student explore the use of Focus Groups around a volunteers) or through classes (such as particular initiative at the outset of a project so community education)” that we can be sure it is really meeting community - Respondent – Online survey needs and not just what we think is needed.

Document number A1931653 Page 9 of 9

Far North Libraries

Servicing Communities - Learning, Literacy and Identity - Enabling Opportunities

Servicing Communities Learning, Literacy and Identity Enabling Opportunities

A B C

Outcomes we want: Outcomes we want: Outcomes we want:  Connecting Far North  Increased traditional and digital  Partnerships to showcase communities with a mobile literacy technologies service  Get children onto the literacy  Trained staff who understand the  Create library zones and spaces ladder early changing technologies and that cater for differing needs  More people able to read and benefits  Well maintained fit-for-purpose enjoy reading  Provide resources to get the most

facilities  from the digital world for Great collections for reading, opportunity creation and listening to and viewing  Capture, maintain, present and realisation promote the Far North’s Identity  Improved job and development  Access to the stories of the past opportunities  Fostering creativity, innovation and entrepreneurship

Far North District Council Strategic Priorities Far North District Council Community Outcomes

1 4 1 Liveable communities that are 4 Better data and information Improved Council capabilities and Prosperous communities Great decision-making and planning need the best performance healthy, safe, connected and data and evidence we can get. supported by a growing economy Our people are the backbone of the organisation sustainable

2 5 2 5 Affordable core infrastructure Address affordability “Can do” communities prepared A wisely managed and treasured Our responsibility is to provide infrastructure that is Our approach is balanced, equitable and fair. compliant, reliable and sustainable. for the unexpected environment

3 Empowering communities 6 Civic leadership and advocacy 3 To best serve our communities, their voices must be Our community is best served by capable and Proud, vibrant, communities heard. credible leaders.

Document number A1932769 Page 1 of 2

Strategy Initiatives Alignment

Strategy 18/19 19/20 20/21 21/22 22/23 23/24 24-28 Initiatives – OPEX Benefit Statement Alignment year 1 year 2 year 3 year 4 year 5 year 6 year 7+

C Staff Development Upskilling to better serve the public

Organisational Review - appoint a district head librarian leading the implementation of 10 year strategy C and culture C Staff member for outreach – for mobile library van Connecting our remote communities Design and planning for Kaikohe revamp Creating great spaces in Great Places

Upgraded Library payments system Making it simpler for our people and staff

Online Portal and enhanced catalogue integration Making it simpler for our people and staff

Transition to RFID tagging – self-issue technology Making it simpler for our people and staff

License Fees for RFID tagging – self-issue technology Making it simpler for our people and staff

C Review and Revisit CCO options and business case Regional partnership for better services Strategy Initiatives - Capex 18/19 19/20 20/21 21/22 22/23 23/24 24-28 Alignment year 1 year 2 year 3 year 4 year 5 year 6 year 7+

New Library management system Making it simpler for our people and staff

Purchase of Self-issue technology – Kiosk – Gates Making it simpler for our people and staff

EftPos and Envisionware Purchase Making it simpler for our people and staff

C Technology & fit-out for Mobile Van Connecting our remote communities

C Increase in e-resources Enhancing services and content Kaikohe Library - Refurbishment Creating great spaces in Great Places

Proctor Library - Elevator upgrade – Refurbishment Creating great spaces in Great Places

Kawakawa – Fit-out for Library Space Creating great spaces in Great Places

Document number A1932769 Page 2 of 2 FAR NORTH DISTRICT LIBRARY STRATEGY - PROPOSED FINANCIAL IMPLICATIONS FOR THE 2018-2028 LONG TERM PLAN Operational 18/19 19/20 20/21 21/22 22/23 23/24 Notes Potential expenditure Year 1 Year 2 year 3 Year 4 Year 5-6 Year 6 Years 7+ Training necessary to allow existing staff to develop into Staff Development 20,000 10,000 5,000 leadership and specialised roles Salary impact District Librarian and specialised Budgeting for an increase in salaries per higher level of roles 66,000 87,000 87,000 87,000 87000 87000 87000 specialisation, skills and implementation of strategy

Design and planning for Kaikohe revamp 5,000 0 0 0 0 0 0 Design and community consultation Annual license fees implementation of new library management system with greater catalogue searching, on-line and integration Move to new library system 0 0 0 0 0 62000 62000 capabilities - Cloud Service Staff member for outreach 0 50,000 50,000 50,000 50000 50000 50000 One FTE for outreach programme Smart and Accountable library payments 0 0 0 0 4400 4400 4400 Annual license fees - Payments integration Annual license fees for RFID (Radio Frequency Identification for License fees for RFID 0 0 0 0 0 16500 16500 books and equipment) Move to RFID - tagging 0 0 0 0 22000 0 0 Implementation of RFID (book tags)

Online portal, integration and training 19000 9,000 9,000 9,000 9,000 9,000 9,000 Annual license fees - replacement of existing on line catalogue Investigate Northland Regional opportunities Northland Review of WDC, KDC, FNDC library services, and for Libraries 0 0 0 75,000 0 0 0 regional opportunities Interest 1,410 7,043 10,753 13,657 17,441 20,129 Interest on new capital works only Depreciation 5,708 20,608 29,608 42,808 56,579 66,065 Depreciation on new capital works only Proposed Aadditional operating funding 110,000 163,118 178,651 261,361 228,865 302,920 315,094 Rating Impact 0.13% 0.18% 0.20% 0.29% 0.25% 0.32% 0.34% Incremental Change 0.05% 0.01% 0.09% -0.04% 0.07% 0.02% Capital Move to new Library management system 75,000 Transition to new library system $75000 renewals

Short-term refresh of library re user and staff safety and re- arrangement of shelves and internal design post community Re-fresh of Kaikohe Library 77,000 consultation $16800 new, $61114 from renewals Year1 - Lift upgrade, Year 3 - Minor re-furbishment $53,656 Funded from Renewals; $13044 Year 1 new, $58300 Year Procter Library - Lift Upgrade and refresh 25,000 100,000 3 new RFID equipment - self check-out, security, workstations and gates Self check-out and Security hardware 60,000 30,000 Equipment and Software - integration to finance and library Integrated and online payments 40,000 systems

Technology and fit out for mobile van 20,000 Dependant on external sponsorship of van - fit out paid by council Part of the Hundertwasser community hub. Dependent on project Fit out for Kawakawa 190,000 going ahead. $85,000 new; $105,000 renewals Establish audio book collection, and on-line services/databases Increase in eResources 16,000 26,000 26,000 26,000 26,000 26,000 26,000 Ongoing years 8 - 10 Total Capital 118,000 236,000 126,000 66,000 161,000 56,000 26,000 789,000

New E-Books 26,163 26,793 27,462 28,119 28,853 29,573 30,312 Existing eBooks budget to remain in place

Capital Breakdown Total Capital Loan Funded / New Capital 32,800 131,000 84,300 66,000 86,000 56,000 26,000 560,100 Renewals 85,200 105,000 41,700 75,000 306,900 Total Capital 118,000 236,000 126,000 66,000 161,000 56,000 26,000 867,000

Document number A1935597 Page 1 of 1

Item: 4.2 Meeting: Strategy Committee - 22 November 2017 Name of item: Inward Investment: China Author: Bill Lee - General Manager Strategic Planning and Policy Group (Acting) Date of report: 27 October 2017 Document number: A1929368

Purpose of the report To propose a Strategy for managing relationships and inward investment from China. Executive summary Council has had an increasing call on resources and personnel to manage the number of referrals for investment as well as augmenting and strengthening the political relationships with Liaoning Province (Governor), our sister city in China, and developing a relationship with the Peoples Republic of China Consulate-General (Auckland). Referrals can come direct from China, through the Consulate-General’s office, via Auckland Tourism, Events and Economic Development (ATEED) or just direct contact by Chinese Companies through our ‘ask us’ or by letter to the Mayor or CEO Office. The way council interacts with these groups is currently unsustainable, reactive and inconsistent. There is a lack of direction and ownership, and relationship management is spread indiscriminately throughout council’s operations and governance arms. Forming an Oversight Group provides a more strategic approach to develop more meaningful relationships with our Chinese groups, actively targets the right people/investors to promote sustainable development for the district, and ensures a timely, professional, proactive and appropriate response to visiting groups. Recommendation That the Strategy Committee recommends that Council: a) adopt the Inward Investment: China Strategy b) nominate Councillor ______to be the elected member on the Strategy Oversight Group

1) Background The ‘One Belt, One Road’ (also referred to as Belt Road Initiatives, BRI) is a Chinese economic and strategic direction, closely tied along two routes - one overland and one maritime. Long-term investments are the priority along “Belt Road” countries allowing Chinese offshore investment. With the increased direction of the People’s Republic of China to invest and develop relationships with countries who have signalled agreement to be part of the BRI, there has been an increasing call on Council resources and personnel to manage the number of referrals for investment as well as augmenting and strengthening the political relationships with Liaoning Province (Governor), our

Document number A1929368 Page 1 of 5

sister city in China, and developing a relationship with the Peoples Republic of China Consulate-General (Auckland). Referrals can come direct from China, through the Consulate-General’s office, via Auckland Tourism, Events and Economic Development (ATEED) or just direct contact by Chinese Companies through our ‘askus’ or by letter to the Mayor or CEO Office. The way council interacts with these groups is currently unsustainable, reactive and inconsistent. There is a lack of direction and ownership, and relationship management is spread indiscriminately throughout council’s operations and governance arms. This strategy aims to clarify the following: 1. Investment Interests for China 2. Level of Relationship 3. The investment value to the Far North District 4. Their expectations The strategy identifies/addresses the following for council; 1. The appropriate response for visiting delegations 2. Roles and responsibilities of Council, Elected Members and Staff 3. Approval process, risks and obstacles in Chinese investment in the district 4. The development potential/priorities for the district Forming an Oversight Group provides a more strategic approach to develop more meaningful relationships with our Chinese groups, actively targets the right people/investors to promote sustainable development for the district, and ensures a timely, professional, proactive, and appropriate response to visiting groups.

2) Discussion and options Option 1 – Adopt the Inward Investment Strategy: China and set up an Oversight Group supported by staff and resources. All enquiries/visits from Chinese groups either at a political level or interested in investing in the Far North District will be managed through the Oversight Group. The Oversight Group will decide the appropriate response, including appropriate staff, and provide high-level, strategic advice to staff and Elected Members. The oversight Group will be responsible for maintaining relationship with the Chinese Government but will ensure other Elected Members are part of the relationship (such as Sister City). The Oversight Group will be responsible for ensuring the development of a portfolio of investment opportunities including identifying key companies who have potential and desire for expansion as well as new initiatives. The proposed Oversight Group and Operational Support Team are set out below:

Document number A1929368 Page 2 of 5

Oversight Group Oversight Group Members Key Responsibilities

Mayor or delegate Build relationships with interested parties CEO Far North Holdings Ltd New groups/approaching new investors Includes due diligence CEO FNDC or delegate Delegate to support Team CEO NINC or delegate (consider) Oversee product portfolio Consul General delegate (consider) Linking political systems

Operations Support Team The Operations Support Team provides short term support for tasks delegated by the Oversight Group. They in turn can target specific skills as required, e.g. communications

Operations Support Team Key Responsibilities

Mayor’s Office Coordinate, support, logistics, invitations FNDC staff Economic development – building relationships with interested parties, NINC interfacing with potential investors Chinese Navigator Develop portfolio of products, maintain and leverage regional relationships Interpretation, cultural guidance Adopting the Strategy and forming the Oversight Group will lessen the risk of not having the appropriate response (reciprocal) when developing relationships and through ensuring that funders are joined to those who have real potential to grow, protect the reputation of the Far North as a place to do business. Option 2 – Status-quo By not adopting the strategy and putting robust processes in place, Council will continue to be adhoc and risk losing significant investment as well as potential reputational communication across China about the Far North as a place to avoid. However, some of this risk can be avoided by Council adhering, through good practise, to the following:

• Safe and Secure: Chinese are used to doing business with strong state control and see Council as a part of the government • Promotion and Clarity: The existence of clear and enforceable rules/guidelines reduces the level of risk associated with investment and in turn this reduction in risk promotes investment • Relationships and Reputation: Chinese, more so than most other economies, focus on building relationships and through success develop trust to further invest.

Reason for the recommendation To adopt the Inward Investment: China Strategy and that the proposed oversight group can be formed to administer the strategy.

Document number A1929368 Page 3 of 5

3) Financial implications and budgetary provision There are no direct financial implications for the Strategy and the cost of the Overview Group is through in-kind resourcing

Manager: Bill Lee - General Manager Strategic Planning and Policy Group (Acting) Attachment 1: Inward Investment: China Strategy - Document number A1929369

Document number A1929368 Page 4 of 5

Compliance schedule: Full consideration has been given to the provisions of the Local Government Act 2002 S77 in relation to decision making, in particular: 1. A Local authority must, in the course of the decision-making process, a) Seek to identify all reasonably practicable options for the achievement of the objective of a decision; and b) Assess the options in terms of their advantages and disadvantages; and c) If any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the relationship of Māori and their culture and traditions with their ancestral land, water sites, waahi tapu, valued flora and fauna and other taonga. 2. This section is subject to Section 79 - Compliance with procedures in relation to decisions.

Compliance requirement Staff assessment

State the level of significance (high or Low low) of the issue or proposal as determined by the Council’s Significance and Engagement Policy. State the relevant Council policies Community Outcome: Sustainable (external or internal), legislation, and/or development of our local economy community outcomes (as stated in the through partnerships, innovation, LTP) that relate to this decision. quality infrastructure and planning

State whether this issue or proposal has District and potentially region wide a District wide relevance and, if not, the ways in which the appropriate Community Board’s views have been sought. State the possible implications for Māori Has potential for increased economic and how Māori have been provided with benefit for Māori, especially in an opportunity to contribute to decision agriculture, horticulture and aquaculture making if this decision is significant and relates to land and/or any body of water. Identify persons likely to be affected by or Will be undertaken as part of due have an interest in the matter, and how diligence for any proposed investment you have given consideration to their views or preferences. State the financial implications and where Will use existing funding and resources. budgetary provisions have been made to Ongoing assessment will be made prior support this decision. to future Annual Plans Chief Financial Officer review. The Chief Financial Officer has reviewed this report.

Document number A1929368 Page 5 of 5

INWARD INVESTMENT STRATEGY: CHINA

September 2017

PURPOSE

Council has formal and informal relationships with a number of different Chinese groups. These are, but not limited to:

• Liaoning Province (Sister City) • Chinese Consulate-General (Auckland) • NZ Natural Beef and Lamb (Office in China) • TUS-Holdings/includes Tsinghua University • BAO Group

The way council interacts with these groups is currently unsustainable, reactive and inconsistent. There is a lack of direction and ownership, and relationship management is spread indiscriminately throughout council’s operations and governance arms.

This strategy aims to clarify the following:

1. Investment Interests for China 2. Level of Relationship 3. The investment value to the Far North District 4. Their expectations

It also identifies/addresses the following for council;

1. The appropriate response for visiting delegations 2. Roles and Responsibilities of Council, Elected Members and Staff 3. Approval Process, Risks and Obstacles in Chinese investment in the district 4. The development priorities for the district

A more strategic approach will allow council to develop more meaningful relationships with our Chinese groups, actively target the right people/investors to promote sustainable development for the district, and ensure a timely, professional, proactive, and appropriate response to visiting groups.

While this strategy focuses on China, parts of the strategy implementation and product development can apply to any inward investment. The expertise built developing the relationship with China can be applied to any other Country who in the future may want to invest in New Zealand, and who Council might assist to invest primarily in the Far North, but Northland as a region. World markets and economies can change quite quickly and the Far North would want to take advantage of any new opportunities.

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BACKGROUND

China’s ‘One Belt, One Road’ initiative

The ‘One Belt, One Road’ (also referred to as Belt Road Initiatives, BRI) is a Chinese economic and strategic agenda by which the two ends of Eurasia, as well as Africa and Oceania (Australasia, Melanesia, Micronesia, and Polynesia) are being more closely tied along two routes - one overland and one maritime.

Long-term investments are the priority along “Belt Road” countries and permits Chinese offshore investment. The acquisitions are policy-driven and there are funds allocated by Chinese banks and state funds for BRI initiatives. BRI provides a global context for China’s growing economic links with New Zealand and the Pacifica region.

Formally, BRI emphasises five key areas of cooperation:

• coordinating development policies • forging infrastructure and facilities networks • strengthening investment and trade relations • enhancing financial cooperation and • deepening social and cultural exchanges.

Infrastructure such as railways, roads, ports, energy systems and telecommunications networks that are receiving the most investment.

For the maritime ‘Road’, China’s development of ports and hubs across the Indo-Pacific is a key aspect of the initiative. Purchase and construction of port facilities and associated economic zones in Australia, Malaysia, Indonesia, Bangladesh, Sri Lanka, Myanmar, Pakistan, Kenya, Tanzania, Oman and Djibouti are intended to provide China with maritime access and economic benefit across the Indian Ocean. These will connect to Piraeus, Greece’s major port, which has been bought by Chinese shipping group COSCO (who have a headquarters in Auckland) and which will allow direct access to the markets of Europe.

Funding for the initiative is a key issue. China’s policy banks are providing extensive funds for Chinese enterprises to operate along these axes, while further funding will be provided through the Asian Infrastructure Investment Bank (AIIB), funded by countries globally. The AIIB was created precisely to service projects under BRI. The projects funded by the first loans issued by AIIB were in Indonesia, Bangladesh, Pakistan and Tajikistan, all countries which China is trying to include within its BRI initiative.

China states that BRI will, once complete ‘include 65 countries, 4.4 billion people and about 40 percent of global GDP’. So far, China has reportedly established 75 overseas economic and trade cooperation zones in 35 countries as part of the BRI initiative. BRI however is currently undeveloped and lacks external endorsement and support.

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PRINCIPLED APPROACH

• Safe and Secure: Chinese are used to doing business with strong state control and see Council as a part of the government • Promotion and Clarity: The existence of clear and enforceable rules/guidelines reduces the level of risk associated with investment and in turn this reduction in risk promotes investment • Right of Entry: Having a 1 road into district ensures that investors are vetted and matched to an opportunity and conversely investors are protected from wasting time and foregoing alternative investment elsewhere • Relationships and Reputation: Chinese, more so than most other economies, focus on building relationships and through success develop trust to further invest.

INVESTMENT INTERESTS FOR CHINA

In each sector, opportunities are reliant on capital investment and access to resources. The Far North has land and labour (skilled and unskilled) that is underutilised and provides opportunities, especially for Māori, to partner with Chinese investment. It requires real effort to facilitate, organise and manage relationships along with strong technical and leadership support to involve Central, Local and Regional Government, agencies like TPK, MPI, MSD, Northland Inc., Māori land owners/Māori partners, Sector Groups and specific industry/business.

While tourism is an investment opportunity another is food production (supply, quality and known source) to feed China’s population. At the added value end is growing high quality food products for sale to high end customers and consumers. This is where specialist

Document number A1929369 Page 3 of 13 knowledge of the China market and customers is crucial and a role suited to our venture partners. Examples of some opportunities are in Appendix 2

ROLES AND RESPONSIBILITIES

Council values its role in promoting the Far North as a great place to live, work and play. The social, cultural, environmental and economic fabric of our great place is unique and of high value.

Council’s economic development role is to assist organisations, companies and private businesses who would like to invest in food production, tourism, manufacturing and services sectors in the Far North. Council acts as a facilitator and provides a link to government agencies, companies and private businesses to match enquiries and expressions of interest with potential clients.

This may include providing information on the opportunities for partnerships and investments, connecting enquiries with the right agencies and organisations that are looking for joint venture partners or actively promoting the Far North as a favourable place to invest.

Relationships held by Council with Sister Cities, Central Government and its Agencies, other Councils, Chambers of Commerce, Business and Community organisations are extremely important and are seen by investors as a valuable link to building trust and confidence to invest in the District. Council is seen as a secure and trusted institution that through its own regulatory systems and policies can regulate and support business applications for approvals, consents and formulating partnerships.

CONSIDERATIONS FOR CHINESE INVESTMENT IN THE DISTRICT: APPROVAL PROCESS, RISKS AND OBSTACLES

Approval Process

Companies enjoy a relatively smooth approval process for deals as a BRI project as regulators tend to put them in a different basket when reviewing outbound investments.

"If you are doing a BRI project, that becomes the first sentence in the document" to the regulators, according to a senior investment advisor at a Chinese company that has acquired several overseas businesses. "It is a wise thing to point out early on".

The largest deal in a BRI initiative in 2017 so far was a Chinese consortium's $11.6 billion buyout of the Singapore-based Global Logistics Properties.

Other top deals include the $1.8 billion purchase of an 8 percent ownership interest in an Abu Dhabi oil company by the state-owned oil giant China National Petroleum Corp, and HNA Group's $1 billion impending acquisition of a logistics company, CWT Ltd.

The State Administration of Foreign Exchange, China's foreign exchange regulator, said in August 2017 that domestic companies would still be encouraged to participate in BRI activities.

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Risks and Obstacles in Chinese Investment

• Cultural Understanding

Hierarchy plays an integral part of business culture in China with leaders and managers being more distinguished than in many Western countries. Chinese leaders and managers expect obedience without question. One important concept to master is “face.” Face represents a person’s reputation and feelings of prestige within the workplace, family, friends, and society. For instance, a Western subordinate attending a meeting where his/her boss is making a presentation would generally not think twice about asking a question, making an alternate suggestion, or even disagreeing with something. In China, this would be a serious face-losing situation for the subordinate, boss, and even the company. Not pointing out others’ mistakes and giving credit for others’ good work are both good ways to help others save face.

Because China has a long history of being exploited by foreign countries, it is of particular importance to show respect as a Westerner doing business in China. Giving gifts, accepting invitations, acknowledging hierarchy, addressing people by their designation, attending meetings, and showing genuine interest in the local culture are ways to show respect in China.

• Moving Too Quickly

Doing business in China often takes longer than it would in most Western countries; it is typical in Chinese culture to establish a strong relationship before closing a deal. Therefore, it is important for Westerners to understand they may need to meet with Chinese businesspeople multiple times before a business partnership or deal can be made. If Westerners are invited to drinks or a meal, it is vital to the development of the relationship to go.

Chinese business culture also has a longer decision-making period than Westerners are used to. It is not uncommon for Chinese businesspeople to extend the decision-making period past a deadline given to them. It is important for Westerners to be prepared for that and to not rush them into making a decision before they are ready.

• Cost of Doing Business

It is common for Western businesses to move operations overseas to save on operational costs. However, in China, operational costs are getting more expensive. Foreign companies have been required to pay education and urban maintenance and construction taxes since December 2010. In addition, the Social Insurance Law, which took effect in July 2011, imposed additional operating costs on companies that already provide international insurance coverage for their employees.

Companies are also becoming alarmed by industrial overcapacity. Subsidies have encouraged some firms to continue production even with dropping demand and then sell their products overseas. Increasing salaries and growing turnover are also a trend around China, especially in second- and third-tier cities. Both of these factors increase costs for

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companies because they have to pay workers higher wages, as well as hire and train new workers frequently due to turnover.

Nevertheless, China’s population allows great potential for productivity and potential for demand. As wages continue to increase, so does the purchasing power of Chinese workers. Even with increasing costs, having a business presence in China represents a large opportunity for growth.

• Economic Stagnation

China’s growing debt is also of concern. Infrastructure has been a top priority of China’s government, with projects for roads, rails, electricity, and telecommunications so much so that China’s investment in infrastructure has hindered their growth. According to researchers at Oxford University, more than half of Chinese infrastructure investments have decreased in economic value as the costs have outweighed the benefits. While infrastructure has been a huge driver of Chinese economic growth over the last few decades, China has recently increased infrastructure spending to counter the slowdown in manufacturing investment. Such investment can lead to waste and add to China’s debt.

Because China’s economic growth has slowed, policymakers in China have begun focusing away from its reliance on investment and industry and on to consumption and services. This is expected to slow short-term growth; however, this shift should build foundations for more sustainable long-term expansion for businesses.

• The Role of Government in Business

There is a substantial difference in the role of government in Chinese businesses compared to Western countries. China has a planned economy closely tied to government. In 2007, for example, the US federal government’s fiscal revenue was $2.4 trillion, or 18 percent of GDP, whereas China’s fiscal revenue was 5.1 trillion yuan ($770 billion), accounting for 21 percent of GDP. In China, more than 76% of assets are owned by the government, with people owning less than a quarter. This means that to do business in China, a company will most likely have to negotiate with the state. The bureaucracy involved in negotiating with the state can slow down the pace of business ventures.

Joint ventures are difficult to establish because they have substantial government involvement. Legal matters lack consistency and can be changed at the will of the Chinese government. However, the Chinese government has tried in recent years to upgrade legal protections making the business environment more enticing to foreigners.

• Corruption

Corruption in China has certainly become more of an issue as the Communist Party of China’s policies, institutions, and norms have clashed with recent market liberalization. Bribery, kickbacks, theft, and misspending of public funds cost at least three percent of GDP each year. Because the Chinese government owns the majority of China’s assets, they have the ability to spend without much oversight into the budget process. The Chinese government has wasted money on high-profile infrastructure projects and government office buildings, and invests in industries with high resource consumption, high pollution, and low job creation.

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Recently, there has been a crackdown on corruption, and many high-profile political figures have been jailed for getting caught up in the net of bribery, abuse of power, and other corrupt practices. While foreign investors are generally happy to see this clean-up work, some have expressed fears that the crackdown also lacks transparency. Nonetheless, it is a step in the right direction for foreign businesses.

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IMPLEMENTING THE BRI

Chinese Consulate-General

The Consul office is the main point of contact for any project concept. Monetary tightening is in play preventing free flow of funds out of China. To get any investment traction applications together with a partnership business model has to accompany any application of more than $50,000 USD. China Consul staff will work with FNDC on any proposal to navigate these restrictions particularly where a project fits the “BRI” philosophy.

The Oversight Group

The Oversight Group is the first port of call for all enquiries/visits from Chinese groups interested in investing in the Far North District. The Oversight Group will decide the appropriate response, including appropriate staff, and provide high-level, strategic advice to staff and Elected Members and are responsible for maintaining the relationship with the Chinese Government. The Oversight Group will be responsible for ensuring the development of a portfolio of investment opportunities (see Appendix 1 – 21 identified priority areas)

Oversight Group Members Key Responsibilities

Mayor or delegate Build relationships with interested parties CEO Far North Holdings Ltd New groups/approaching new investors Includes due diligence CEO FNDC or delegate Delegate to support Team CEO NINC or delegate (consider) Oversee product portfolio Consul General delegate (consider) Linking political systems

Operations Support Team

The Operations Support Team provides short term support for tasks delegated by the Oversight Group.

Operations Support Team Key Responsibilities

Mayor’s Office Coordinate, Support, Logistics, Invitations FNDC staff Economic Development – building relationships with interested parties, interfacing with potential investors NINC Develop portfolio of products, maintain and leverage regional relationships Chinese Navigator Interpretation, Cultural guidance

The table below gives a representation for the current relationships.

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Group Level of Relationship Investment value to Their expectations Council contact Appropriate Council the Far North District response

Liaoning Formal Low Want to build Oversight Group Official welcome - (Sister City) relationship with FNDC including senior leaders However delegations and explore investment and Mayor supported often include opportunities. by other EM’s. businesses that want to invest during trip to NZ. Recently signed 2x Tour of local supply contracts with businesses and present Silver Fern Farms and investment AFCCO. opportunities.

Rangatira to Rangatira.

Chinese Consulate- Formal High Activate investment in Oversight Group Either: Official welcome General Far North. - if representing (Investment Approver) Chinese Govt - Have team of portfolio including senior leaders holders specific to FN – and Mayor supported Education, Commerce, by other EM’s. Cultural and Political. Or: Working meeting.

TUS-Holdings/ Formal Medium Start projects. Oversight Group Working meetings. including Tsinghua (MOU) University Tsinghua also has MOU with Auckland University NZ Natural Beef and Potential investor High Wanting to invest $1M Oversight Group Working meetings. Lamb in aquaculture in FND and seek out other opportunities. BAO Group Potential investor Medium Scoping investment Oversight Group Working meetings. opportunities - focus on tourism.

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Appendix 1

DEVELOPMENT PRIORITIES FOR THE DISTRICT

The largest industries in the Far North are agriculture, forestry and fishing making up 15% of our GDP and employing 22,300 employees. Horticulture and honey are also growing industries in the Far North.

With our good soil and fresh water to support production, the Far North has potential as a massive food producing district. Add to this Māori fishing interests and this puts iwi, hapu and whanau in a good position to form new models of partnerships particularly with foreign investors. Agriculture, horticulture, aquaculture and tourism are strong potential future growth areas, with infrastructure support a necessity to building scale and cost efficiencies.

Recently (July/August 2017) we hosted 3 Chinese groups. Their main interest was to build relationships in the Far North with the view of future investment. They are particularly interested in opportunities to work with Māori.

We have to consider the importance of Māori in the local economic landscape. Māori make up 46% of the population and they hold 21% of the land in Far North district. This makes Māori an influential player in the local economic fabric. They have the land, labour and access to resources, but suffer from a lack of working capital.

Generally Māori, through historic, social and cultural barriers, have not taken full advantage of international trade. This has a lot to do with protecting what they have left rather than growing their capital base. And while we must understand and respect this risk adverse position, there are some good examples of trade partnerships have emerged from post- treaty settlements e.g. Ngai Tahu, Kahungunu, Tuwharetoa, Ngati Awa, etc.

China and New Zealand have a free trade agreement. This initiative is significant as it fits China’s “One Belt, One Road” ideology which is trade route focussed. New Zealand is viewed as the capital of the South Pacific, a rich food growing area where investment is relatively safe and opportunities to grow food partnerships are available. A typical business model would be joint venture partnerships particularly with local Māori growers, where Māori maintain ownership of the land and a Chinese partner would put working capital on the land. Māori would then sell the production (at fair market value) to the Chinese partner who would on sell through their own sales networks in China.

Variations on partnerships are often customised but typically a 50/50 arrangement with a profit and dividend sharing component means that each partner benefits on 2 levels, as a producer or distributor and in dividends from the margins of trade. In this way land remains secured without debt and put into production, labour is put to work, product is sold at a fair market price, supply contracts are secured, international sales networks are established, sales commissions are paid and farm branding starts to build a franchise with international customers.

The challenge for New Zealand food producers is to be internationally price competitive and offer high quality products. It comes down to how good we are at growing to order and how cost effective we are in production and sales efficiencies. This could mean investment in primary and secondary processing facilities and logistics as another joint venture

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component. An investment like this would be designed to include a number of producers to maintain scale (container lots of production). A joint venture model could be land (Māori) being leased, Chinese capital for the build and a 50/50 partnership or profit sharing model. This would incentivise Māori farmers to maintain a level of production in keeping the supply chain pipeline full.

Priorities Areas

More scoping required. Use list to produce a high quality prospectus.

1. Agriculture 2. Meat processing including quality control mechanisms 3. Aquaculture (farming and processing - eels, oysters) 4. Horticulture (farming and processing) 5. Research and Development (on new product (rongoa, flax) and processes) 6. Food traceability (paddock to plate - digital connectivity, automation) 7. Apiculture (Manuka honey - food and medicinal) 8. Cooperatives - Land use (production aggregation) 9. Working with Maori to develop their land 10. Improving capability and capacity - training, get the best person for the job 11. Logistics and transport (road, rail, shipping) 12. Adding value - selling “products”, not “product” 13. Consistency of supply - to fulfil supply contracts 14. Building relationships and networks to establish supply contracts 15. Building a brand - food bowl of the South Pacific 16. Secondary production (medicines, animal/fish feed) 17. Sustainable development (ensure environment is protected) 18. Investor security and support (one stop shop, trade reciprocation) 19. Forestry (logs and final product) 20. Knowledge economy (creative industries, programming, arts and crafts) 21. Infrastructure development (target funds back into communities)*

*Infrastructure

A food economy needs good infrastructure to access land production. The Whangarei port is a great start and China via Consul General Office has indicated an interest in the Whangarei port and rail corridor upgrade as a PPP project. This sits comfortably with the likes of China Rail as a NZ Government guaranteed project. Notwithstanding the economic upside of food production, bringing in China infrastructure investment will also have a significant economic effect on the Northland economy.

The role of Government

Government intervention on economic matters is not unusual in China. It has played a major role in the re-surgence of China as an economic powerhouse. In NZ government plays a “hands off” approach to market intervention, relying on market forces to dictate economic trends and policy. Chinese investors like to see government participation either directly or indirectly as it reinforces a level of creditability and comfort.

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Appendix 2

Primary Secondary

Red Meats Te Hiku collective have Sausages, beef jerky, 85,000 head on land gelatine, food supplements, currently. They expect to hides, blood and bone, double that over the next 3 pharmaceuticals, offal. years. If we add in Ngapuhi and Ngati Whatua 15,000 head brings us up to 200,000 head.

Horticulture Berry Fruits, strawberries, Sauces, Jams, Pickles, blueberries, tomatoes, powders, pastes, spreads, cherries, capsicums, garlic, animal feed, pressed olives chillies, olives, avocados, into oil, compost. kiwifruit, leaf crops (sliver beets, red cabbage, lettuce) courgettes.

Aquaculture Oysters, Mussels, Finfish Fish food pallets, chilled farming, crayfish (whole or mussels, bottled oysters, part). vacuum packed frozen/fresh.

Tourism Tourism from China into Northland increased 19% last year and is expecting to grow rapidly over the next 5 years. Northland suffers from a lack of quality infrastructure to match growth. One of the challenges is the effects of seasonality on occupancy rates.

Nevertheless new models of capital structuring and marketing are getting favourable traction from China investors. The new tourists are seeking new experiences and 5 star quality and services. Chinese investors will build their own recruitment networks to fill occupancy and local businesses/Māori can hinge a number of opportunities around this including, food supply contracts, staffing and management roles, overseas training deployment in a 5 star setting, Māori visitor experiences, supply of mirimiri oils, soaps and essentials, retail shopping, etc. and using a shared ownership model based on land and location access by Māori and build and construction model from Chinese investment.

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References

China’s Investments in Countries Along Its ‘Belt and Road’ Project Are Soaring

https://www.kaplanfinancial.com/resources/pdc/6-challenges-of-doing-business-in-china- and-how-to-overcome-them/

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Item: 4.3 Meeting: Strategy Committee - 22 November 2017 Name of item: Infrastructure Grant Fund Funding Decisions Author: Ana Mules - Community Policy and Development Manager (Acting) Date of report: 31 October 2017 Document number: A1932400

Purpose of the report To inform the Strategy Committee’s decision making process by identify the options available to allocate the contestable Infrastructure Grant Fund (IGF).

Executive summary The Infrastructure Grant Fund (IGF) of $100,000 was established to help communities build new, community managed infrastructure in the district. 15 applications were received requesting a total of $1,206,827.52 in funding. Of the 15, 10 applications were excluded as they did not meet the funding criteria. A Decision Making Tool was developed to help Community Policy & Development staff assess applications in line with the Community Grant Policy. Using the Tool, the following three projects scored the highest; • Raiātea Cultural Resource, Education & Archive Centre (Motuti) 98 points; • Bay of Islands Recreation Centre & Pool (Kawakawa) 95 points; • Kerikeri Southside River Track (Kerikeri) 92 points.

Recommendation That the Strategy Committee recommend to Council funding for the following projects a) $59,950 to the Raiātea Cultural Resource, Education & Archive Centre (Motuti) b) $21,620 to the Bay of Islands Recreation Centre & Pool (Kawakawa) c) $13,129 to the Kerikeri Southside River Track (Kerikeri).

1) Background The Infrastructure Grant Fund (IGF) of $100,000 was established to help communities build new, community managed infrastructure in the district. Projects must provide a direct benefit to the identified community and also support the district’s sustainable development. Grant funding from any Council source cannot exceed 50% of the total project costs, which may include a calculation based on volunteer time.

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The Fund was open from 21 September 2017 to 20 October 2017 and applicants will be informed of Council’s decisions on 29 November 2017. The Community Grant Policy states successful projects will: provide new infrastructure • provide the most direct benefit to the widest part of the identified community • provide open access to the identified community • fulfil demonstrated community needs or provide services not already available • have a high degree of local participation and engagement • have applied for funding from sources outside of Council • be consistent with or contribute to Council’s Community Outcomes • be likely to be economically sustainable in the long term • be family-friendly and, where practicable, accessible to the mobility impaired

The following are not eligible for funding: • repair or replacement of existing infrastructure • operational expenditure • retroactive projects • wages or salary • commercial activities, unless of direct benefit to the community • projects/infrastructure outside of the district • applicants who have failed to successfully submit a Project Report for a project funded within the last five years

2) Discussion and options 15 applications were received requesting a total of $1,206,827.52 in funding. Of the 15, 10 applications were excluded as they did not meet the funding criteria. A Decision Making Tool was developed to help assess applications in line with the Community Grant Policy and Community Policy & Development staff declared a Conflict of Interest and removed themselves from discussions when required. The tool allowed for a maximum of 110 points to be scored (please see Attachment One). To support development outside of the Bay of Islands-Whangaroa Ward, projects outside of this ward received an additional 10 points. Projects that have received funding from this fund before (previously known as the District Community Grant Fund) were deducted 10 points, as stated in the policy: ‘Projects that have been funded by the Infrastructure Grant Fund in the past, while not prohibited from applying to the fund again, will automatically rate lower than projects that are new to the fund.’ The following three projects scored the highest - Raiātea Cultural Resource, Education & Archive Centre (Motuti) 98 points; Bay of Islands Recreation Centre & Pool (Kawakawa) 95 points; the Kerikeri Southside River Track (Kerikeri) 92 points. Project Summaries

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A. Raiātea Cultural Resource, Education & Archive Centre Under the visionary leadership of Pa Henare Tate, the small North Hokianga settlement of Motuti has been on a journey of resilience and self-determination. Bringing local culture and history to life for over three decades, the community has committed to a build it and they will come philosophy, with the ambition of bringing the world to Motuti. The return of Bishop Pompallier’s remains to Motuti was part of this journey, as was the building of the marae which includes a whare whakairo (carved meeting house) and boardwalk connecting the marae to the Hokianga Harbour/boat access. The marae holds a vast collection of Māori and religious taonga, but there is currently nowhere to safely display or store these priceless artefacts. To help address this, the community plan to build the Raiātea Cultural Resource, Education & Archive Centre to house these taonga. Raiātea is named after the schooner that sailed Bishop Pompallier into the Hokianga. Project planning started in 2011. Since then there have been a number of wananga held at North Hokianga marae and the working group Ngā Kaihoe i a Raiātea will be presenting the story of Raiātea at the Tuhonohono i ngā taonga a iwi national conference to be held at Te Ahu in November 2017. The Raiātea project has already been approved funding from Foundation North (September 2016, $280k) and Lotteries Environment & Heritage (June 2017, $550k). This funding is specifically for the construction of the building with fire protection, air conditioning, and other items excluded. The project is asking for $59,950 from the Infrastructure Grant Fund to purchase a fire suppression system, less than 10% of the total build cost of $972,075. While the preservation of artefacts is integrated into the building design - including concrete, archive shelving and other materials - the remote location and therefore distance to the nearest fire service increases the risk of damage or destruction by fire. Raiātea has high legacy value and the fire suppression system will help taonga to be stored safely and securely. The North Hokianag location supports tourism dispersal in the District and the community are already generating an income from visitors. Staff would like to note the high calibre of this application. The application was well thought out, detailed and tailored specifically to this fund, not a generic application being reused to approach many funders. Should council approve this funding, thought should also be put into addressing the ongoing Motuti roading issues - namely slips and lack of turning area/parking for visiting tour buses. This may include working with NZTA to discuss the possibility of joint funding solutions to help better access this site of significance. B. Bay of Islands Recreation Centre & Pool With our outdoors lifestyle and easy access to beaches, Far North residents are frequently in and around water. But learn to swim programmes are not as accessible as they used to be, and as a result Northland has a disproportionately high number of drownings1. The Bay of Islands Community Swimming Pool is the only all season, heated and covered pool that offers this service in the Far North District. The Community Business and Environment Collective (CBEC) has been involved with the Community

1 Northern Advocate, Water Safety NZ concerned about drowning stats in Northland 17 Oct, 2017

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Swimming Pool, situated at the Bay of Islands College for over a decade and has seen many changes in that time. Now that the opportunity to manage the combined Recreation Centre has presented itself under new governance from Sport Northland, the possibility to enhance this facility for both the local community and visitors is considerable. However, two new infrastructure improvements are considered urgent and essential to create an attractive, safe and secure environment and independent, more accessible operations. These are, 1. A new Building Control System independent from the college in order to operate and cater to the public out of school hours and at weekends. This system will manage memberships, security, safety alarms and comply with H&S in order to meet a building WOF. The system will also allow for public WI FI hot spots. 2. A new entranceway. With opportunities for children (and adults) to learn to swim limited in the Far North, and swimming being regarded as a core life skill, the Bay of Islands Community Swimming Pool is a valuable community asset. The project is asking for $21,620 from the Infrastructure Grant Fund, less than 50% of the $46,620 required to complete the new Building Control System and Entranceway. The project has shown excellent community support, raising $15,000 from the Kawakawa Business and Community Association and $20,000 from the ASB Trust. Council has invested in this infrastructure previously and recently established a targeted rate for ongoing operations. C. Kerikeri Southside River Track The Kerikeri Southside River Track will provide a bush/river link from Kerikeri township to the Kororipo Heritage Park/Kerikeri Basin, connecting to the already established track network to create a 7.7km loop track. The track will include a large picnic area with picnic tables built by the Men’s Shed.

The benefits of being outdoors and active are well documented. Kerikeri is home to many young families and elderly and shaded walkway options are limited. Council is

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actively represented on the Kororipo Heritage Park Management Committee and this track will help deliver more people to the basin area. The newly completed Wairoa Track is seeing an average of 350 users per week. To put a commercial value on the track, if 350 people paid $7 per session to a gym, then that is a community value of $2450 per week, or $127,400 per year. The Wairoa Track work has been completed by Vision Kerikeri, the same group that is applying for this funding. Most of the proposed track land is administered by either Council or DOC, with a small section in private ownership. The project team have shown excellent community support by gaining approval from DOC and the private owner to open up their section of land for the track, securing Vision Consulting Engineering’s support for a pro-bono geophysical survey as well as committing very high amounts of volunteer time. The project team are also developing a unique tourism product, focussed on the 5 waterfalls accessible by Kerikeri tracks and a website is currently being built by volunteers to help market this. The project is asking for $13,129 from the Infrastructure Grant Fund to cover material costs only. The project team have also asked that council help with some weed clearing on the council reserve so that they can then replant in natives. These three top scoring projects amount to a total of $94,699.00, leaving $5301 remaining of the $100,000 fund budget. The remaining applications received the following scoring. D. Kawakawa Hundertwasser Park Centre Te Hononga Ask: $100,000 of $2.6M Points: 87 Minus 10 points as located in the BOI-W Ward. E. Waitangi Mountain Bike Park Toilets Ask: $85,000 of $205,000 Points: 86 Minus 10 points as located in the BOI-W Ward. Minus 10 points for being awarded $70,000 from the earlier version of this fund the District Community Grant Fund. F. Tangonge Domain Development Ask: $236,519.77 of $215,017.98 Points: N/A Not eligible for funding as 50% of funding not secured. Council have already funded $5,000 towards the Maara Kai (Community Gardens) component of this project through the Kai Ora Fund and the Community Board has funded $2,500 towards the ‘Fight for P’ fundraiser. Council are considering leasing the Tangonge Domain to the project. The Tangonge Domain project team currently hold $15,000 from their ‘Fight the P’ fundraiser. There are strong community components to this project (playground, basketball court, pohutukawa tree planting, fruit tree planting). G. Waihou-Nui-a-Rua Marae Community Hub

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Ask: $62,000 of $104,718 Points: N/A Not eligible for funding as 50% of funding not secured. Aim is to create a community hub to address local social, cultural, educational and economic needs. Some parts of application - e.g. digital hub - align strongly with council objectives. H. Whangamumu Walking Track Toilets Ask: Amount not indicated Points: N/A Not eligible for funding as 50% of funding not secured. Not eligible as fund will not cover a track assessment. DOC currently has a portaloo at this site as there is a growing issue with the lack of facilities at the sight (Fullers Great Sights have recently started delivering busloads of people to the track). I. Te Haa o Te Ao Sculpture Ask: $163,000 of $260,000 Points: N/A Not eligible for funding as 50% of funding not secured. BOI-W Community Board has previously funded $10,350. Entranceway sculpture by Chris Booth and Tom Hei Hei for Kerikeri at Bulls Gorge. J. Russell Recyclers Ask: $11,978 of $22,978 Points: N/A Not eligible for funding as 50% of funding not secured. Not eligible – service, not infrastructure project (volunteers to sort bags of recyclable material from FNDC recycle bins in Russell). K. The Flying Kiwi Outdoor Adventure Park (Trefoil Park) Ask: $97,120 of $186,120 Points: N/A Did not meet funding criteria 50% of funding not secured. Private/commercial enterprise, however potential for future social benefits acknowledged. L. Takou Bay Toilets Ask: $47,891.75 of $47,748.50 Points: N/A Did not meet funding criteria 50% of funding not secured. M. Rangitane Ramp Replacement Ask: $100,000 of $120,000 Points: N/A

Document number A1932400 Page 6 of 10

Did not meet funding criteria, repair or replacement of existing infrastructure. Did not meet funding criteria 50% of funding not secured. N. Whangaroa Footpath (Kent Bay to Lewer St) Ask: Amount not indicated Points: N/A Did not meet funding criteria 50% of funding not secured. O. Lindvart Park Toilets Ask: $80,000 of $80,000 Points: N/A Did not meet funding criteria 50% of funding not secured.

Options Option No. Option Description Advantages Disadvantages 1 Council funds the Decision Making Two high profile three highest Tool is used to help projects, the scoring projects. ensure process is Kawakawa transparent and Hundertwasser objective. Park Centre Te Hononga and the Waitangi Mountain Bike Park are not funded due to points allocated.

2 Council funds Decision Making Higher scoring other, lower Tool may not be projects might feel scoring projects. seen to be at a disadvantage comprehensive as it is harder for enough. communities to understand the rational used in the decision making process.

3 Council does not No financial burden Miss out on an fund any projects. on council and no opportunity to be expectation that involved in council will fund significant community infrastructure infrastructure development in the projects in the district. future. Fail to deliver on community expectations set by the fund.

Document number A1932400 Page 7 of 10

Staff’s recommendation is Option 1 - that Council funds the three highest scoring projects. Reason for the recommendation The Infrastructure Grant Fund (IGF) of $100,000 was established to help communities build new, community managed infrastructure in the district. Projects must provide a direct benefit to the identified community and also support the district’s sustainable development. It is Council’s role to meet the current and future needs of communities for good- quality local infrastructure, local public services and performance of regulatory functions in a way that is most cost-effective for households and businesses. (Local Government Act 2002, section 10 (1)).

3) Financial implications and budgetary provision Council has sufficient funds available for this grant. The three top scoring projects are below the $100,000 available. There will be $5,301 remaining.

Manager: Bill Lee - General Manager Strategic Planning and Policy Group (Acting) Attachment 1: IGF Decisions Spreadsheet 2017 – Document number A193518

Document number A1932400 Page 8 of 10

Compliance schedule: Full consideration has been given to the provisions of the Local Government Act 2002 S77 in relation to decision making, in particular: 1. A Local authority must, in the course of the decision-making process, a) Seek to identify all reasonably practicable options for the achievement of the objective of a decision; and b) Assess the options in terms of their advantages and disadvantages; and c) If any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the relationship of Māori and their culture and traditions with their ancestral land, water sites, waahi tapu, valued flora and fauna and other taonga. 2. This section is subject to Section 79 - Compliance with procedures in relation to decisions.

Compliance requirement Staff assessment

State the level of significance (high or Low significance as the matter has low) of the issue or proposal as already been addressed by the Council’s determined by the Council’s Significance policies or plans, which have previously and Engagement Policy been consulted on.

State the relevant Council policies The matters and recommendations fit (external or internal), legislation, and/or with the District Vision and Community community outcomes (as stated in the Outcomes. LTP) that relate to this decision. Safe, healthy, resilient places and people. Sustainable development of our economy through partnerships, innovation, quality infrastructure and planning.

State whether this issue or proposal has The matter is of District wide relevance. a District wide relevance and, if not, the ways in which the appropriate Community Board’s views have been sought.

State the possible implications for Māori The areas where community and how Māori have been provided with infrastructure is weakest tend to be in an opportunity to contribute to decision rural communities which have a high making if this decision is significant and Māori population. relates to land and/or any body of water. In He Tangata, He Whenua, He Oranga, the economic growth strategy for the Tai Tokerau Māori economy produced by the Te Taitokerau Iwi Chief Executives’ Consortium, a ‘genuine commitment by all levels of government to reprioritise investment in infrastructure to make it viable to do business and live in the region’ is one of the eight key factors identified to transform the region’s Māori

Document number A1932400 Page 9 of 10

economy.

Identify persons likely to be affected by or All key stakeholders have had their have an interest in the matter, and how views considered through the application you have given consideration to their review process. views or preferences.

State the financial implications and where There are no financial implications. budgetary provisions have been made to support this decision.

Chief Financial Officer review. The CFO has reviewed this report.

Document number A1932400 Page 10 of 10 Page 1 SUCCESS SOCIAL ACCESSIBILITY LOCAL INPUT Ex BOI FUNDING BENEFITS & BENEFIT PROJECT NAME ACTUAL AMOUNT REQUESTED AMOUNT TOTAL SCORE (max score 20) (max score 40) (max score 10) (max score 20) (score 10) (max score 10)

Kawakawa Hundertwasser Park Centre - $2,600,000.00 $100,000.00 19 29 9 20 0 10 87 Te Hononga (the joining of cultures) Stage 1 contstruction 1

Kerikeri Southside River Track $20,889.00 $13,129.00 17 40 5 20 0 10 92

2

Raiatea Cultural Resource & Archive $972,075.00 $59,950.00 15 33 10 20 10 10 98 Centre - Motuti Marae Trustees 3

Russell Recyclers $22,978.00 $11,978.00 0 0 0 0 0 0 0 (service not infrastructure) 4

Takou Bay - Ablution Block $42,341.75 $41,501.75 0 0 0 0 0 0 0

5

Tangonge Domain Development Project $215,017.98 $236,519.77 11 35 10 20 10 0 86

6

Te Haa o Te Ao $260,000.00 $163,000.00 13 12 10 20 0 0 55

7

Te Flying Kiwi Northland - Outdoor $186,120.00 $97,120.00 6 0 0 0 10 0 16 Adventure Park (Estimated) 8

Waihou-Nui-A-Rua Marae - Community $104,718.00 $62,009.00 14 27 10 20 10 0 81 Hub 9

Waitangi Moutain Bike Park $615,000.00 $90,000.00 20 36 10 20 0 0 86

10

Whangamumu Walking Track & Toilets - $38,000.00 $30,000.00 20 36 5 20 0 0 81 (Te Rawhiti 3B2 Ahu Whenua Trust) Total amount not indicated Total request amount not 11 indicated Page 2 SUCCESS SOCIAL ACCESSIBILITY LOCAL INPUT Ex BOI FUNDING BENEFITS & BENEFIT PROJECT NAME ACTUAL AMOUNT REQUESTED AMOUNT TOTAL SCORE (max score 20) (max score 40) (max score 10) (max score 20) (score 10) (max score 10)

Kawakawa Recreation Centre - Pool $46,620.00 $21,620.00 20 35 10 20 0 10 95

12

Whangaroa - Kent Bay & Lewer Street $100,000.00 10 40 10 5 0 0 65 Footpath no quotes attached 100% Requested 13

Rangitane Wharf Resoration $120,000.00 $100,000.00 0 35 5 20 0 0 60

14

Lindvart Park - Ablution Toilets' $80,000.00 $80,000.00 14 30 10 15 10 0 79

15

TOTAL $5,323,759.73 $1,206,827.52

Item: 4.4 Meeting: Strategy Committee - 22 November 2017 Name of item: District Plan Update Author: Tammy Wooster - Senior Policy Planner Date of report: 26 October 2017 Document number: A1928086

Purpose of the report To provide the Strategy Committee with a regular update of the status of various plan changes, submissions, appeals and the strategic alignment of the District Plan review processes. This item includes an Update Schedule (refer to Attachment 1) and a graphic representation of Plan Change status (refer to Attachment 2). Executive summary The report provides an update for the Strategy Committee on the progress of current plan changes, submissions, appeals, and the strategic alignment of District Plan review processes. Recommendation That the Strategy Committee receive the report entitled “District Plan Update” dated 22 November 2017

1) Background The Strategy Committee has requested a regular update of the status of various plan changes, submissions, appeals and the strategic alignment of the District Plan review processes.

2) Discussion and options Current Plan Change Processes Appeal to the Environment Court:

• Proposed Plan Change 18 - Genetically Modified Organisms (GMOs) The appeal by Federated Farmers to the Court of Appeal on the Resource Management Act 1991 (the Act) having jurisdiction to regulate GMOs in relation to the Regional Policy Statement (RPS) has been withdrawn. A separate appeal is yet to be heard by the Environment Court (EC) in relation to the Federated Farmers appeal against the Regional Policy Statement in relation to GMOs. No date has been set for this hearing, but legal Counsel for Whangarei District Council is seeking a February 2018 hearing date. The EC has indicated that they will hear the Regional Policy Statement appeal before hearing the Federated Famers appeal against this plan change. This approach is supported by our legal Counsel.

Document number A1928086 Page 1 of 4

One Notified Proposed Plan Change now fully operative • Proposed Plan Change 20 – Traffic, Parking and Access This plan change became fully operative on 13 October 2017. A media piece to highlight key implications of the plan change is being developed and will be made available in mid November. One Proposed Private Plan Change Accepted by Council • Proposed Plan Change 22 – Inlet Estate Limited Council, on 14 September 2017 by resolution, accepted this private plan change. This decision means that the application will continue to be processed as a private plan change. The next step in the Schedule 1 process is notification of the private plan change. Council has 4 months under the Act to do this. Designation Update The New Zealand Transport Agency road designation envelope for the Taipa Bridge has been altered to include the area being used for the new bridge development. In addition, under section 182 of the Resource Management Act 1991 (the Act), Chorus as the requiring authority for designation TC134 has requested its removal from the District Plan. The designation updates have been undertaken under delegated authority, as they are exempt from the Schedule 1 plan change process. Please refer to Attachment 3 from more detailed information. Development of the draft District Plan The District Plan Team is drafting high level resource management methods both statutory and non-statutory. Plan Review Communications As part of the heritage review, public nominations for new notable trees have been sought. The consultation period opened on the 6 of November 2017 and will close on the 6 December 2017. The public can nominate a tree or group of trees either online or using a hardcopy nomination form. The public have been advised of this opportunity via social media, the “lets plan together” emailing list and in media releases. All three community boards have been informed. Engagement with Tangata Whenua On the 4 October 2017, the District Plan Team and other staff members held a hui with the District Plan Review Tangata Whenua Reference Group. The meeting was held to discuss high level resource management methods (both statutory and non- statutory) for the tangata whenua portfolio and to provide a general update on the District Plan review process. The District Plan Team has established a Mana Whakhono a Rohe (Iwi Participation Arrangements) working group, comprising of staff across the Strategic Planning and Policy Group. This group is currently developing an overview of current Council, Iwi and Hapu relationships agreements and environmental plans and learning about this new section of the Act. A workshop will be held with elected members in the New Year. Further Reform Considerations The District Planning Department provided feedback on the Ministry for the Environment (MfE) national template for district plan structure and spatial planning tools on the 1 October 2017, Tangata Whenua Provisions on 20 October and a revised zone framework on October 27. We will continue to participate in the MfE

Document number A1928086 Page 2 of 4

pilot program for the new national planning standards. As of the 18 October 2017, all amendments to the Resource Management Act 1991 (the Act), came into effect. Due to the change in government, and the appointment of a new Minster for the Environment David Parker, we are mindful that this may result in changes to central government direction. Proposed Regional Plan Review The District Plan Department submitted on the notified Proposed Northland Regional Plan. This submission was endorsed by Council at the 26 October 2017 meeting. Reason for the recommendation To inform the Strategy Committee on the progress of current plan changes, submissions, appeals, and the strategic alignment of District Plan review processes.

3) Financial implications and budgetary provision Costs associated with the “Schedule 1” statutory district planning work streams for the 2017/18 financial year (such as appeals on the Proposed Plan Changes) and other updates are budgeted for. From a “Plan Review” perspective, a consolidated plan review will have associated costs once the Plan is notified and subsequent hearings and plan appeals occur. Stage 1 Processes involving the Research and Investigation Framework, is mostly in- house. Stage 2 - Issues and Options may have a moderate to high funding requirement in the 2017/18 financial year. Hearings and appeals are in the 2018/19 or subsequent financial year and may have greater cost, especially in relation to specialist involvement and legal processes and support. The budgets and timing of work proposed in the Annual Plan for 2017/18 and the subsequent Long Term Plan 2018-28 will be kept under review.

Manager: Bill Lee - General Manager Strategic Planning and Policy Group (Acting) Attachment 1: Plan Change Update Schedule - Document number A1929258 Attachment 2: District Plan Change Progress Graph - Document number A1929729 Attachment 3: Designations Update - Document number A1931208

Compliance schedule: Full consideration has been given to the provisions of the Local Government Act 2002 S77 in relation to decision making, in particular: 1. A Local authority must, in the course of the decision-making process, a) Seek to identify all reasonably practicable options for the achievement of the objective of a decision; and b) Assess the options in terms of their advantages and disadvantages; and c) If any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the relationship of Māori and their culture and traditions with their ancestral land, water sites, waahi tapu, valued flora and fauna and other taonga. 2. This section is subject to Section 79 - Compliance with procedures in relation to decisions.

Document number A1928086 Page 3 of 4

Compliance requirement Staff assessment

State the level of significance (high or This item relates to informing the low) of the issue or proposal as Strategy Committee as opposed to determined by the Council’s Significance actual content of any plan change or and Engagement Policy review. Assessed as low significance.

State the relevant Council policies Every component of the District Plan (external or internal), legislation, and/or review is assessed against existing community outcomes (as stated in the policies of Council and outcomes of any LTP) that relate to this decision. community planning as per the requirements under the Act.

State whether this issue or proposal has This item relates to informing the a District wide relevance and, if not, the Strategy Committee as opposed to ways in which the appropriate Community actual content of any plan change or Board’s views have been sought. review.

State the possible implications for Māori The review of a District Plan requires (by and how Māori have been provided with legislation) consultation with tangata an opportunity to contribute to decision whenua. In response to that requirement making if this decision is significant and the District Planning Department relates to land and/or any body of water. supported the creation of the Tangata Whenua Advisory/Reference Group.

Identify persons likely to be affected by or Any review of a District Plan requires (by have an interest in the matter, and how legislation) consultation with affected you have given consideration to their persons. views or preferences.

State the financial implications and where Provision has been made in the District budgetary provisions have been made to Plan budget within the Annual Plan for support this decision. 2017/18. Budgets proposed in the Annual Plan 2017-18 and the subsequent Long Term Plan 2018-28 will be kept under review and may need to be adjusted.

Chief Financial Officer review. The Chief Financial Officer has reviewed this report.

Document number A1928086 Page 4 of 4 Attachment 1 Plan Change Update Schedule

Plan Change Update Schedule

Number Title Status Comment

18 Genetically 1 Appeal to the Appeal lodged by Federated Farmers. Modified Environment Awaiting hearing or mediation date from the Organisms Court Environment Court

20 Traffic, Parking Fully Operative Operative as of the 13 October 2017 and Access

22 Inlet Estate Ltd Application Council resolution on 14 September 2017 to accepted by accept the application. This means it

Council remains a private plan change application.

Document number A1929258 Page 1 of 1 Proposed Plan Change Activity Report - October 2017 District Plan – October 2017

Summary of Activity: There is currently 1 Council plan change being processed and 1 private plan change. Council is currently undertaking a consolidated review of the Operative Far North District Plan 2009

Highlights for the month

Plan Change 20 – Traffic, Parking and Access became fully operative on 13 October 2017

There is now only 1 remaining Council plan change to completed

Document number A1929729 Page 1 of 1 Attachment 3 – Designation Update

Date Requiring Designation Map (s) Change description updated authority # Nov 2017 Chorus TC134 109 Removal of designation from Pt Sec 3 Blk VI Hokianga SD, located at 310 State Highway 12, Pakanae as the site is no longer used for this purpose. Nov 2017 NZTA Road 60 Alternation to envelope of an existing designation to include part of the parcel Sec 42 Blk IV Mangonui SD in response to the development of the new Taipa Bridge.

Document number A1931208 page 1 of 1