Economic Development Subcommittee Agenda 2.10.18
A G E N D A
ECONOMIC DEVELOPMENT SUB COMMITTEE MEETING
Tuesday, ͮ October ͮͬͭʹ, ͵.ͬͬam in the Council Chambers, William Street, Paeroa Membership
Committee Members:
Cr R Harris (Chairperson) Cr G R Leonard (Deputy Chairperson) Cr D Adams Cr P A Milner Cr A Rattray D Taipari (Appointee) Mayor J P Tregidga
Staff:
L D Cavers S Fabish A de Laborde D Peddie P Thom D Fielden R Jenks Council Secretary
Public copies:
Paeroa Office Plains Area Office Waihi Area Office
Hauraki District Council, P O Box ͭͳ, William Street Paeroa, New Zealand P: ͬͳ ʹͲͮ ʹͲͬ͵ or ͬʹͬͬ ͳͯͰ ʹͯͰ (within the District) E: [email protected] www.hauraki-dc.govt.nz Delegations: Economic Development Subcommittee
Membership Five Councillors and one Council appointee.
On the Tuesday, two weeks prior to the Community Services and Development Meeting frequency Committee, commencing at ͵.ͬͬam
The Council delegates to the Economic Development Sub- committee the Delegations following powers, duties and responsibilities:
Authority to approve expenditure up to ͈ͱ,ͬͬͬ per project within the existing approved Community Growth budget subject to reporting the expenditure to the next available Community Services and Development Committee meeting.
To report to the Community Services and Development Committee any recommended changes required to the Economic Development Strategy.
To review and develop the Economic Development Action Plan required by the Economic Development Strategy and to monitor and report to the Community Services and Development Committee on its implementation.
To receive and review reports from the Economic Development Manager on economic development matters.
To review and recommend to the Community Services and Development Committee the budget for the Community Growth activities and the priorities for expenditure.
To receive and review reports on Community Growth Activities and make recommendations to the Community Services and Development Committee.
Community Growth Activities include:
Economic Development Visitor Information Centre’s Town Promotion Hauraki Rail Trail Destination Coromandel Development Assistance/Grants
ECONOMIC DEVELOPMENT SUBCOMMITTEE
AGENDA
Tuesday 2 October 2018 at 9.00am, Council Office, William Street, Paeroa
11.00am Michael Bassett-Foss and Harvey Brookes Te Waka CEO and COO presentation and introduction
Order of Business Pages
1. Apologies
2. Declarations of Late Items
3. Declarations of Interests
4. Confirmation of Economic Development Subcommittee Minutes - 31.7.18 5 (2416201)
5. Positive Paeroa Draft Business Plan (2466180) 10
6. Verbal report on China trip 2018
7. EVI Global EV Pilot City Programme (2466204) 18
8. Economic Development Manager's Report for August and September 31 2018 (2466157)
9. Economic Development Subcommittee - 2018 Work Programme 59 (2466194)
10. Waikato Regional Cycle Network Programme Business Case (2466184) 69
1 EDS Agenda 2.10.18 EDS Agenda 2.10.18 Page5
HAURAKI DISTRICT COUNCIL
ECONOMIC DEVELOPMENT SUBCOMMITTEE
MINUTES OF A MEETING OF THE ECONOMIC DEVELOPMENT SUBCOMMITTEE HELD IN THE COUNCIL CHAMBERS, WILLIAM STREET, PAEROA ON TUESDAY, 31 July 2018 COMMENCING AT 9.00AM
PRESENT Crs R Harris (In the Chair), D A Adams, P A Milner, A Rattray and His Worship the Mayor Mr J P Tregidga
IN ATTENDANCE D Fielden (Economic Development Manager), Ms R Jenks (Economic Development Officer) and Ms C Black (Council Secretary)
APOLOGIES
RESOLVED
THAT the apology of Cr G Leonard and Mr D Taipari be received and sustained.
EDS18/61 Milner/Rattray CARRIED
DECLARATION OF LATE ITEMS
There were no late items.
DECLARATIONS OF INTERESTS
The Mayor and Cr Adams declared a conflict of interest in relation to Item 8: Paeroa Information Services – Annual Funding Accountability Report.
CONFIRMATION: ECONOMIC DEVELOPMENT SUBCOMMITTEE MINUTES - 26-06-18 (2404544)
RESOLVED
THAT the minutes of the Economic Development Subcommittee meeting held on Tuesday, 26 June 2018 be confirmed and are a true and correct record.
EDS18/62 Adams/Rattray CARRIED
WAIHI I-SITE VISITOR CENTRE - FUNDING ACCOUNTABILITY REPORT - JUNE 2018 (2411936)
Mr Eddie Morrow – General Manager of the Waihi I-Site and Visitor Centre was in attendance.
RESOLVED
THAT the Waihi I-Site Visitor Centre Funding Accountability Report to June 2018 report be received.
EDS18/63 Milner/Rattray CARRIED
1 Econonic Development Subcommittee Minutes – 31-07-18 Doc Ref: 2416201 EDS Agenda 2.10.18 Page6
Key points noted:
• Visitor numbers are still strong although lesser volume than this time last year – noted that this is the low season • Cruise liner operators – opportunity for business • German and French visitors have been noticeable • i-SITE NZ Conference – September 2018 • Waihi i-SITE is hosting the Waikato Regional i-SITE cluster group meeting – 1 August 2018 • Upcoming communications and connections workshop • Waihi i-SITE will undergo annual Qualmark assessment – business practices • Waihi Gold Discovery Centre recently renewed its partner agreement with the Hauraki Rail Trail Charitable Trust
Noted: A member requested annual budgets be submitted with annual report in future and that the financials for the last financial year be submitted as soon as possible.
DESTINATION COROMANDEL ANNUAL FUNDING ACCOUNTABILITY REPORT- FINANCIAL YEAR 2017-18 (2411934)
Mr John Sandford- Chairman, Destination Coromandel was in attendance.
RESOLVED
THAT the Destination Coromandel Annual Funding Accountability Report for the financial year 2017-18 report be received.
EDS18/64 Milner/Rattray CARRIED
Key points:
• General Manager – DC – working actively on promotional activity for Hauraki • Noted increase in tourism in Coromandel and Hauraki • Destination Coromandel – review undertaken on governance process, performance management, health and safety, etc. • Destination Coromandel invested in an episode of ‘People on Bikes’. This features the Hauraki Rail Trail and will be aired in NZ late 2018 • Facebook traffic is high • June period has decreased in some areas due to weather conditions and the reduced accessibility into the Coromandel Peninsula • Destination Coromandel – General Manager is considering organising an advisory group to encourage the tourism industry to play a stronger part in determining tourism’s role in the region e.g. identifying regional priorities and joint venture marketing opportunities.
The meeting adjourned at 9.50am. The meeting reconvened at 10.10am.
ANNUAL FUNDING ACCOUNTABILITY REPORT - POSITIVE PAEROA INC. - JULY 2018 (2412405))
The Annual Funding Accountability Report from Positive Paeroa Inc. for July 2018 was available for consideration.
2 Econonic Development Subcommittee Minutes – 31-07-18 Doc Ref: 2416201 EDS Agenda 2.10.18 Page7
RESOLVED
THAT the Positive Paeroa Inc. Annual Funding Accountability Report for July 2018 be received.
EDS18/65 Tregidga/Rattray CARRIED
Town Promoter Reporting
It was noted that the accountability reports from each of the Town Promoters would be presented to the Ward Working Parties from now on at quarterly intervals. A copy of the reports will be included in the Economic Development Subcommittee agendas for information only.
Letter of Agreement – Positive Paeroa Inc.
The Subcommittee Chair and members requested that their appreciation be conveyed to Positive Paeroa for signing the Funding Agreement with Council.
Declaration of Conflict of Interest: Go Waihi Inc. Signing of Letter of Agreement with Council
Cr Rattray declared a conflict of interest in the discussion regarding the funding agreement with Go Waihi Inc. and took no part in the discussion and decision.
The members agreed that the funding agreement between Council and Go Waihi Inc. was to be signed and received by a set date to enable Council to carry out a performance review of the organisation and to give Go Waihi time to implement any operational changes that may be required.
RESOLVED
THAT a signed Letter of Agreement be received from Go Waihi by 17 August 2018 to enable Council to carry out a performance review of the organisation and to give Go Waihi time to implement any necessary changes.
EDS18/66 Tregidga/Milner CARRIED
PAEROA INFORMATION SERVICES - ANNUAL FUNDING ACCOUNTABILITY REPORT – JUNE 2018 (2412645)
The Annual Funding Accountability Report from Paeroa Information Services to June 2018 was available for consideration.
RESOLVED
THAT the Annual Funding Accountability Report from Paeroa Information Services to June 2018 be received.
EDS18/67 Milner/Rattray CARRIED
BUSINESS GROWTH SERVICES PROMOTION (2412327)
The Economic Development Officer presented a report which provided a proposed plan for future promotions of the Waikato Regional Economic Development Agency Business Growth Services.
3 Econonic Development Subcommittee Minutes – 31-07-18 Doc Ref: 2416201 EDS Agenda 2.10.18 Page8
RESOLVED
THAT the report be received.
EDS18/68 Milner/Tregidga CARRIED
The Economic Development Officer will continue to work on this project with the town promoters and the Business Growth Advisors. All town promotions committees need to be aware of the business series. It was requested that Councillors continue to be informed of the business series and its progress so they can encourage businesses to take part.
ECONOMIC DEVELOPMENT MANAGER'S REPORT FOR JULY 2018 (2412320)
RESOLVED
THAT the report be received.
EDS18/69 Adams/Rattray CARRIED
Hauraki Industrial Park
A conversation was held where it was agreed that the Economic Development Subcommittee further explore all types of industry, not exclusively the food industry, to establish in the Industrial Park.
Candidates for Business Awards
A discussion was held regarding the need for elected members and Economic Development staff to approach and encourage prospective Hauraki business people to put themselves forward for the business awards.
ECONOMIC DEVELOPMENT SUBCOMMITTEE - 2018 WORK PROGRAMME AND ACTION PLAN (2412444)
The Economic Development Officer presented the Subcommittee’s current work programme to date and sought feedback of any considered changes to the programme.
RESOLVED
THAT the report be received.
EDS18/70 Milner/Rattray CARRIED
Feedback on programme:
30 October 2018 – the independent review of the town promotions organisations will be presented to the Economic Development Subcommittee on 30 October 2018. .
Feedback on Action Plan:
Item (I) – The wording of “Roll out the Red Carpet, not the Red Tape” will be looked into and results presented to the Economic Development Subcommittee by 30 October 2018.
4 Econonic Development Subcommittee Minutes – 31-07-18 Doc Ref: 2416201 EDS Agenda 2.10.18 Page9
LGNZ Young Elected Members – ‘Festival for the Future’
Cr Rattray updated on his attendance at the LGNZ Young Elected Members – ‘Festival for the Future’ where workshops were held around problems facing Local Government with emphasis on funding tourism infrastructure.
The meeting closed at 11.50pm.
CONFIRMED
R Harris Chairperson
28 August 2018
5 Econonic Development Subcommittee Minutes – 31-07-18 Doc Ref: 2416201 EDS Agenda 2.10.18 Page10
Decision Report
To: Economic Development Subcommittee
From: Economic Development Officer
Date: Tuesday, 25 September 2018
File reference: Document: 2466170 Appendix A: 2448073 Appendix B: 2448073
Portfolio holder: Councillor Ross Harris
Meeting date: Tuesday, 2 October 2018
Subject: Positive Paeroa draft business plan
Recommendation: THAT the report be received, and
THAT the Economic Development Subcommittee provide feedback to Positive Paeroa Inc. on their draft business plan and budget.
1 Purpose
The purpose of this report is to get sign-off from the Economic Development Subcommittee on Positive Paeroa’s draft business plan or to provide feedback on the plan for the Positive Paeroa Committee to consider.
The matter or suggested decision does not involve a new activity, service, programme, project, expenditure or other deliverable.
2 Background
According to the Letter of Agreement with Positive Paeroa Inc. they are required to submit a draft copy of their draft business plan to Council before 31st August 2018. This deadline was extended by one week upon receiving a request from the Chair of Positive Paeroa Inc. Council are required to respond to the draft Business Plan within two weeks of receipt of the same. This response was required by 24 September 2018 but due to the timing of the Economic Development Subcommittee meeting the submitted documents could only be reviewed on the 2 October 2018 at the Economic Development Subcommittee meeting. Positive Paeroa Inc. can only finalise and implement their business plan after considering and giving effect to recommendations provided by Council.
Page 1 of 2 EDS Agenda 2.10.18 Page11
3 Issue and options
The Positive Paeroa Inc. draft business plan is in Appendix A and the draft budget in Appendix B of this report.
Option 1: Accept the draft business plan and budget provided by Positive Paeroa Inc.
Option 2: Provide feedback on the draft budget provided by Positive Paeroa Inc. for their consideration.
4 Significance and Engagement Assessment
This decision does not trigger the Significance and Engagement Policy Assessment Tool and therefore is not considered significant under the Significance and Engagement Policy 2014.
5 Budget Implications
There are no budget implications as a result of this report. Receiving the Positive Paeroa Inc. draft business plans means that Positive Paeroa Inc. is fulfilling the requirement to provide these documents to Council as specified in the Letter of Agreement between Hauraki District Council and Positive Paeroa Inc.
6 Recommendation
Council staff recommend that the Economic Development Subcommittee provide feedback to Positive Paeroa Inc. on their draft business plan and budget.
Rebecca Jenks ECONOMIC DEVELOPMENT OFFICER
Page 2 of 2 EDS Agenda 2.10.18 Page12
Business Plan
Organisation Profile
Background:
Governance: By election at AGM: Business representatives x6, Community representatives x2 By Mayoral appointment: Hauraki District Council representative x1
Vision: Paeroa… the best little town in the middle of everywhere!
Mission: To promote Paeroa as being a fantastic place to live, work, play & do business in.
Objectives: • To promote and market Paeroa within New Zealand and overseas as an attractive, innovative and unique place to visit, work and live. • To ensure that residents, visitors and tourists are welcomed, entertained and provided with information and assistance while in Paeroa. • To assist, promote and encourage any enterprise, idea or suggestion which may enhance the economy, employment opportunities and community spirit for the benefit of Paeroa. • To liaise and co-operate with Hauraki District Council and its successors, any person, business, community group or body in order to achieve benefits for the community of Paeroa.
Key Personal Details and Responsibilities
Chairperson: • At all meetings the Chairperson or vice chairperson/deputy chair shall preside. • At all General Meetings and Board meetings the Chairperson shall have a deliberative and casting vote. • The Chairperson may appoint a Secretary, a Treasurer, a Vice-Chairperson and any additional officer.
Treasurer: The Treasurer shall be responsible for: keeping accounts for the Society, recording all incoming and outgoing finances, issuing receipts for all funds received, preparing such financial statements as required by the Society for presentation at the AGM and ensuring that all payments are authorised by two officers of the Society.
Secretary: The Secretary shall be responsible for: all correspondence, recording and retention of minutes of all General Meetings and Board meetings, maintaining the Register of Members, Issuing notices of Meetings and agendas for such Meetings in accordance with the Rules.
Town Promoter: To promote Paeroa, and the surrounding District, as a positive place to live, work, play and do business in.
EDS Agenda 2.10.18 Page13
Goal Settings: Summary of future plans
Short term goals: Target dates: End of 2018
1. To hand back Info Services contract to HDC 2. Develop the Evolve Business Seminars further with Reda; focussing on getting local businesses digital 3. Funding applications x 3; Community Lighting, Santa parade and a third to be decided. 4. Governance training completed 5. Flagtrax MOU completed with HDC 6. New flags (see above) 7. New event
Long term goals: Target dates: March 2019 - Dec 2019
1. Funding for wages-application Feb for March response (an on-going goal) 2.New Events underway; including Black Rock Run and an event for Mackay St TBA 3.Expand Trade show involvement; (eg Covi show) and using this to enhance and grow partnerships with other organisations such as the Hauraki Rail Trail 4. Veranda lighting solar power options to be explored 5. Beautification projects and green/eco town aspirations (plastic free etc)
Performance Indicators/Measures
• Seek Alternative Funding • Support Council Initiatives • Effectiveness of Relationships • Reporting on Performance Against Service Agreement Targets • Internal Performance Reviews
Task/target Achievements
Swot Analysis
Strength Analysis:
• Strong relationships with business, community and media. • Strong social media presence • Strong engagement with local businesses networks and the ability to leverage work in kind • Ability to respond in real time to opportunities as they present • Ability to work across the wider community/district, encompassing both business and social community • Flexibility around work schedules • Conduit role within wider community (business & community) - connecting people, services, skills, needs etc
Corresponding Action Plans
• Continuation and expansion of BA5 • Website and Facebook page active and current
Weakness Analysis:
• Reliance on Council funding • Lack of committee members and training/ reliance on volunteers • Lack of engagement with businesses in outlying areas
Corresponding Action Plans:
• Funding applications, selling and wholesaling merchandise • Approaching community members to join the committee and completing governance training • Expanding the reach of the BA5 to areas such as Kerepehi
Opportunities Analysis:
EDS Agenda 2.10.18 Page14
• Partnerships; formalising existing relationships into partnerships to co-fund projects • Monetising existing Positive Paeroa initiatives • Equal partnership with HDC once funding is in place • Ability to co-ordinate with other events/committees and utilise relationships with media/advertising for bulk buying power
Corresponding Action Plans • Approaching Hauraki Rail Trail, Tourism organisations, and other town promoters to co-fund projects and events • Flag sponsorship, BA5 meetings, ticket commissions and merchandise could all be opportunities in this regard • Secure funding and other income streams • Create coherent event planning with other organisations
Threat Analysis: • Lack of funding/budget • Uncertainty re future structure and purpose of organisation
Corresponding Action Plans • Funding applications and other income streams to be explored • Continued discussion and negotiation with HDC re the funding/structure and purpose of Positive Paeroa
Financial Plan (draft budget attached)
Sources of funding: Hauraki District Council - ($42,750.00 to December 2018)
Additional funding achieved:
Monthly:
Quarterly:
Half yearly:
Yearly: Reporting and Other Compliance Monthly; basic financials
Quarterly: Hauraki District Council
Half yearly:
Annual: Audit
Review and Monitoring Process
Quarterly: review business plan and budget month before reporting is due.
EDS Agenda 2.10.18 Page15
Positive Paeroa July 2018 - June 2019 Budget Calculator by Vertex42.com © 2010-2014 Vertex42 LLC
Starting Cash Balance: 79,602.33 [42] JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL TOTAL Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Total Income 7,125 -7,125 7,531 -7,531 7,531 -7,531 7,581 -7,581 7,531 -7,531 7,581 -7,581 7,531 -7,531 7,531 -7,531 7,531 -7,531 7,581 -7,581 7,531 -7,531 7,531 -7,531 90,572 0 Total Expenses 13,576 0 13,576 6,596 6,596 11,946 11,946 16,576 16,576 11,596 11,596 6,596 6,596 42,909 42,909 16,929 16,929 16,929 16,929 7,951 7,951 6,596 6,596 6,596 6,596 164,797 0 TAGGED MONIES (47.9%) 6,000 0 0 0 5,000 0 7,000 0 5,000 0 0 0 35,333 0 10,333 0 10,333 0 0 0 0 0 0 0 78,999 0 OPERATIONAL COSTS (8.1%) 1,069 0 1,069 0 1,419 0 1,069 0 1,069 0 1,069 0 1,069 0 1,069 0 1,069 0 1,244 0 1,069 0 1,069 0 13,353 0 PERSONNEL (32.9%) 5,000 0 4,020 0 4,020 0 7,000 0 4,020 0 4,020 0 5,000 0 4,020 0 4,020 0 5,000 0 4,020 0 4,020 0 54,160 0 PROMOTIONS (1.3%) 166 0 166 0 166 0 166 0 166 0 166 0 166 0 166 0 166 0 366 0 166 0 166 0 2,192 0 ADVERTISING (0%) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 COMMUNITY LIGHTING (3.9%) 532 0 532 0 532 0 532 0 532 0 532 0 532 0 532 0 532 0 532 0 532 0 532 0 6,384 0 WEBSITE (0.5%) 63 0 63 0 63 0 63 0 63 0 63 0 63 0 63 0 63 0 63 0 63 0 63 0 756 0 MISC. EXPENSES (1.2%) 166 0 166 0 166 0 166 0 166 0 166 0 166 0 166 0 166 0 166 0 166 0 166 0 1,993 0 FINANCE (4.2%) 580 0 580 0 580 0 580 0 580 0 580 0 580 0 580 0 580 0 580 0 580 0 580 0 6,960 0 PROJECTS (0%) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Misc (0%) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Misc (0%) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Misc (0%) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Misc (0%) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NET (Income - Expenses) -6,451 0 6,451 935 0 -935 -4,415 0 4,415 -8,995 0 8,995 -4,065 0 4,065 985 0 -985 -35,378 0 35,378 -9,398 0 9,398 -9,398 0 9,398 -370 0 370 935 0 -935 935 0 -935 -74,681 0 Projected End Balance ##### ##### 6,451 ##### ##### 5,517 ##### ##### 9,932 ##### ##### 18,927 ##### ##### 22,992 ##### ##### 22,007 ##### ##### 57,385 ##### ##### 66,783 3,422 ##### 76,181 3,052 ##### 76,551 3,987 ##### 75,616 4,922 ##### 74,681
Actual End Balance [42]
INCOME Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Hauraki District Council 7,125 -7,125 7,125 -7,125 7,125 -7,125 7,125 -7,125 7,125 -7,125 7,125 -7,125 7,125 -7,125 7,125 -7,125 7,125 -7,125 7,125 -7,125 7,125 -7,125 7,125 -7,125 85,500 0 Interest Income 6 -6 6 -6 6 -6 6 -6 6 -6 6 -6 6 -6 6 -6 6 -6 6 -6 6 -6 6 -6 72 0 Department of Justice 250 -250 200 -200 200 -200 250 -250 200 -200 250 -250 200 -200 200 -200 200 -200 250 -250 200 -200 200 -200 2,600 0 Funder 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Funder 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 In Kind - Graphic 200 -200 200 -200 200 -200 200 -200 200 -200 200 -200 200 -200 200 -200 200 -200 200 -200 200 -200 200 -200 2,400 0 Other Income 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total INCOME 7,581 0 -7,581 7,531 0 -7,531 7,531 0 -7,531 7,581 0 -7,581 7,531 0 -7,531 7,581 0 -7,581 7,531 0 -7,531 7,531 0 -7,531 7,531 0 -7,531 7,581 0 -7,581 7,531 0 -7,531 7,531 0 -7,531 90,572 0
TAGGED MONIES Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Holiday Pay 6,000 -6,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6,000 0 Welcome Signs 0 0 0 0 5,000 -5,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5,000 0 Street Maps 0 0 0 0 0 0 2,000 -2,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,000 0 Stationary Map 0 0 0 0 0 0 0 0 2,000 -2,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,000 0 Streets Flags 0 0 0 0 0 0 0 0 0 0 0 0 5,000 -5,000 0 0 0 0 0 0 0 0 0 0 5,000 0 Covi Show 2019 0 0 0 0 0 0 0 0 0 0 0 0 2,000 -2,000 2,000 -2,000 2,000 -2,000 0 0 0 0 0 0 6,000 0 L&P Merchandise 0 0 0 0 0 0 5,000 -5,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5,000 0 Santa Parade 0 0 0 0 0 0 0 0 3,000 -3,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,000 0 3mths Op Costs 0 0 0 0 0 0 0 0 0 0 8,333 -8,333 8,333 -8,333 8,333 -8,333 0 0 0 0 0 0 24,999 0 FlagTrax 0 0 0 0 0 0 0 0 0 0 20,000 -20,000 0 0 0 0 0 0 0 0 0 0 20,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total TAGGED MONIES 6,000 0 -6,000 0 0 0 5,000 0 -5,000 7,000 0 -7,000 5,000 0 -5,000 0 0 0 35,333 0 -35,333 10,333 0 -10,333 10,333 0 -10,333 0 0 0 0 0 0 0 0 0 78,999 0 % of Income 84.2% - 0.0% - 66.4% - 92.3% - 66.4% - 0.0% - 469.2% - 137.2% - 137.2% - 0.0% - 0.0% - 0.0% - 87.2% - OPERATIONAL COSTS Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Rent 530 530 530 530 530 530 530 530 530 530 530 530 530 530 530 530 530 530 530 530 530 530 530 530 6,360 0 Utilities 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 360 0 Printer Lease 74 74 74 74 74 74 74 74 74 74 74 74 74 74 74 74 74 74 74 74 74 74 74 85 888 0 Phone/Internet 199 199 199 199 199 199 199 199 199 199 199 199 199 199 199 199 199 199 199 199 199 199 199 199 2,388 0 Subscriptions 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Stationery 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 1,200 0 Post Office Box 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 175 175 0 0 0 0 175 0 Email hosting 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 111 0 AGM 0 0 0 0 350 350 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 350 0 Office Equipment & Hardware 125 125 125 125 125 125 125 125 125 125 125 125 125 125 125 125 125 125 125 125 125 125 125 125 1,500 0 Total OPERATIONAL COSTS 1,069 0 1,069 1,069 0 1,069 1,419 0 1,419 1,069 0 1,069 1,069 0 1,069 1,069 0 1,069 1,069 0 1,069 1,069 0 1,069 1,069 0 1,069 1,244 0 1,244 1,069 0 1,069 1,069 0 1,069 13,353 0 % of Income 15.0% - 14.2% - 18.8% - 14.1% - 14.2% - 14.1% - 14.2% - 14.2% - 14.2% - 16.4% - 14.2% - 14.2% - 14.7% -
PERSONNEL Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Wages 4,900 4,900 3,920 3,920 3,920 3,920 4,900 4,900 3,920 3,920 3,920 3,920 4,900 4,900 3,920 3,920 3,920 3,920 4,900 4,900 3,920 3,920 3,920 3,920 50,960 0 Professional Development 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 600 0 Travel Reimbursement 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 600 0 Governance Training 0 0 0 2,000 2,000 0 0 0 0 0 0 0 0 2,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total PERSONNEL 5,000 0 5,000 4,020 0 4,020 4,020 0 4,020 7,000 0 7,000 4,020 0 4,020 4,020 0 4,020 5,000 0 5,000 4,020 0 4,020 4,020 0 4,020 5,000 0 5,000 4,020 0 4,020 4,020 0 4,020 54,160 0 % of Income 70.2% - 53.4% - 53.4% - 92.3% - 53.4% - 53.0% - 66.4% - 53.4% - 53.4% - 66.0% - 53.4% - 53.4% - 59.8% -
PROMOTIONS Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff BA5 166 166 166 166 166 166 166 166 166 166 166 166 166 166 166 166 166 166 166 166 166 166 166 166 1,992 0 ANZAC Day 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 200 200 0 0 0 0 200 0 Shop & Win 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Hauraki Coromandel Business Awards 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total PROMOTIONS 166 0 166 166 0 166 166 0 166 166 0 166 166 0 166 166 0 166 166 0 166 166 0 166 166 0 166 366 0 366 166 0 166 166 0 166 2,192 0 % of Income 2.3% - 2.2% - 2.2% - 2.2% - 2.2% - 2.2% - 2.2% - 2.2% - 2.2% - 4.8% - 2.2% - 2.2% - 2.4% -
ADVERTISING Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff EDS Agenda 2.10.18 Page16
JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL TOTAL Paradise Playground 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Hauraki Herald 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Media Works - Radio 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Hamilton Maps 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NZME - Print 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NorthSouth Magazine 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NZME - Radio 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Valley Signs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 T&T Publishing (Rail Trail Mag) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Misc - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Misc - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total ADVERTISING 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 % of Income 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% -
COMMUNITY LIGHTING Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Power 319 319 319 319 319 319 319 319 319 319 319 319 319 319 319 319 319 319 319 319 319 319 319 319 3,828 0 Repairs 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 2,556 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total COMMUNITY LIGHTING 532 0 532 532 0 532 532 0 532 532 0 532 532 0 532 532 0 532 532 0 532 532 0 532 532 0 532 532 0 532 532 0 532 532 0 532 6,384 0 % of Income 7.5% - 7.1% - 7.1% - 7.0% - 7.1% - 7.0% - 7.1% - 7.1% - 7.1% - 7.0% - 7.1% - 7.1% - 7.0% -
WEBSITE Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Hosting Fees 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 252 0 Upgrades 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 504 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total WEBSITE 63 0 63 63 0 63 63 0 63 63 0 63 63 0 63 63 0 63 63 0 63 63 0 63 63 0 63 63 0 63 63 0 63 63 0 63 756 0 % of Income 0.9% - 0.8% - 0.8% - 0.8% - 0.8% - 0.8% - 0.8% - 0.8% - 0.8% - 0.8% - 0.8% - 0.8% - 0.8% -
MISC. EXPENSES Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff General Expenses 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 996 0 Committee Expenses 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 996 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total MISC. EXPENSES 166 0 166 166 0 166 166 0 166 166 0 166 166 0 166 166 0 166 166 0 166 166 0 166 166 0 166 166 0 166 166 0 166 166 0 166 1,992 0 % of Income 2.3% - 2.2% - 2.2% - 2.2% - 2.2% - 2.2% - 2.2% - 2.2% - 2.2% - 2.2% - 2.2% - 2.2% - 2.2% -
FINANCE Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Accounting Fees 319 319 319 319 319 319 319 319 319 319 319 319 319 319 319 319 319 319 319 319 319 319 319 319 3,828 0 Audit Fees 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 1,020 0 Insurance 105 105 105 105 105 105 105 105 105 105 105 105 105 105 105 105 105 105 105 105 105 105 105 105 1,260 0 Paymark 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 168 0 ACC Fees 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 384 0 Withholding Tax 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 Bank Charges 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 264 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total FINANCE 580 0 580 580 0 580 580 0 580 580 0 580 580 0 580 580 0 580 580 0 580 580 0 580 580 0 580 580 0 580 580 0 580 580 0 580 6,924 0 % of Income 8.1% - 7.7% - 7.7% - 7.7% - 7.7% - 7.7% - 7.7% - 7.7% - 7.7% - 7.7% - 7.7% - 7.7% - 7.6% -
PROJECTS Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total PROJECTS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 % of Income 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% -
Misc Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Misc 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 % of Income 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% -
Misc Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 EDS Agenda 2.10.18 Page17
JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL TOTAL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Misc 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 % of Income 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% -
Misc Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Misc 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 % of Income 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% -
Misc Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff Budget Actual Diff 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Misc 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 % of Income 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - EDS Agenda 2.10.18 Page18
Decision Report
To: Economic Development Subcommittee
From: Economic Development Manager
Date: Tuesday, 25 September 2018
File reference: Document: 2466197 Appendix A: 2466049 Appendix B: 2466052 Appendix C: 2466055 Appendix D: 2466056
Portfolio holder: Councillor Harris
Meeting date: Tuesday, 2 October 2018
Subject: EVI Global EV Pilot City Programme
Recommendation: THAT the report be received, and
THAT the Economic Development Subcommittee recommend to the Community Services and Development Committee that Hauraki District Council signs up to the EVI Global EV Pilot City Programme.
1 Purpose
The purpose of this report is to receive a recommendation from the Economic Development Subcommittee to either support or not support Hauraki District Council signing up to the Electric Vehicle Initiative Global EV Pilot City Programme. If the Subcommittee decides to support this, a report will then be taken to the Community Services and Development Committee.
The matter or suggested decision does not involve a new activity, service, programme, project, expenditure or other deliverable.
2 Background
During the recent Economic Development trip to PR China, the delegation met with representatives of the Clean Energy Ministry where discussions were held about the Electric Vehicles Initiative (EVI) EV Pilot City Programme (PCP) which leads the development and use of new energy vehicles [aka electric vehicles.]
Page 1 of 2 EDS Agenda 2.10.18 Page19
The PCP was first introduced in July 2010 after a meeting in Washington DC. Both PR China and the United States proposed the Electric Vehicle Initiative and established the EV International Pilot City as one of the key components of the proposal. In December 2017 the establishment of the Joint Secretariat of Global EV Pilot City Programme led to cities from countries such as; Canada, PR China, Finland, Japan, Netherlands, New Zealand [Christchurch], Norway, Sweden, Thailand, United Kingdom and the United States to participate in Pilot City Programmes. Participating cities gain access to information on how PCP’s are delivered and are supported through policies and programs for communities. The information received by participating cities provides analysis of measures to support the uptake of electric vehicles in; urban planning, infrastructure and mass transit. During the recent economic development tour to PR China, the delegation was made aware of significant new energy business opportunities for Hauraki district and New Zealand. The delegation had two exclusive meetings with the chairman and senior officials from one company at the forefront of new energy vehicles.
3 Issue and options
Through Hauraki district entering into the PCP, it becomes a leader in New Zealand, allowing the District to gain access to new energy technology and potential business opportunities which may develop. It is considered that entering into the PCP would enhance Hauraki district’s ability to attract the aforementioned company to the District.
Options:
1. The Economic Development Subcommittee recommends to the Community Services and Development Committee that Hauraki district signs up to the EVI Global EV Pilot City Programme. 2. The Economic Development Subcommittee does not recommend to the Community Services and Development Committee that Hauraki signs up to the EVI Global EV Pilot City Programme.
4 Significance and Engagement Assessment
This decision does not trigger the Significance and Engagement Policy Assessment Tool and therefore is not considered significant under the Significance and Engagement Policy 2014.
5 Budget Implications
The Joint Secretariat for EVI Global EV Pilot City Programme, Rachel Rong advises there is no cost to Council for providing the services to Hauraki District Council.
6 Recommendation
Hauraki district has an opportunity, along with Christchurch city, to become a leader in New Zealand and Australia by entering into the EVI Global EV Pilot City Programme. From the recent visit to PR China it is possible that Hauraki district could benefit from business, environmental and leadership opportunities.
Therefore, Council staff recommends, that the Economic Development Subcommittee recommend to the Community Services & Development Committee that Hauraki District Council signs up to the EVI Global EV Pilot City Programme.
David C Fielden ECONOMIC DEVELOPMENT MANAGER
Page 2 of 2 EDS Agenda 2.10.18 Page20
Clean Energy Ministerial - Electric Vehicles Initiative - EV30@30 Campaign
EVI Global EV Pilot City Programme
Concept paper
Updated: 8 November, 2017 – FINAL DRAFT
1. Definition
The EVI Global EV Pilot City Programme (the “Programme”) is a global cooperative initiative composed of local administrations of member governments of the Electric Vehicle Initiative (EVI), established and operating as part of the EV30@30 Campaign.
2. Purpose and scope
The Programme aims at facilitating the exchange of experiences and the replication of good practices for the promotion of electric vehicles (EVs) in the urban environment.
It is a platform where local administrations can seek information and exchange on the benefits and implementation challenges of EVs, building on knowledge developed by a network of actors also confronted with these topics and fostering partnerships across cities. In particular, the Programme enables local administrations to: Access information on how other local administrations have supported EVs through policies and programs for their residents, businesses, and own fleets; Liaise with national administrations, intergovernmental agencies and research organizations working on the analysis of existing measures supporting the uptake of electric mobility to identify good practices; Engage with peers in other administrations that are working on the promotion of electric mobility in their jurisdictions, establishing partnerships and enabling the adoption of good practices; Establish contacts with service providers and companies or organizations involved in the promotion of electric mobility.
The Programme covers policies, legal frameworks, technologies, protocols, business models (including public/private cooperative solutions) and other innovations conceived for the promotion of electric vehicles including plug-in hybrid, battery electric and fuel cell electric vehicles. The scope of vehicle categories targeted cover personal cars, road-based mass transit (e.g. buses), delivery freight vehicles, fleets (public and private) and dedicated vehicles (e.g. construction vehicles, garbage trucks). The areas of interest encompass urban planning, vehicle technologies, infrastructure and charging technologies, business development, public transportation (comprising mass transit and taxi services) and mobility as a service (comprising vehicle – e.g. car or two wheeler- sharing, ride sharing and ride hailing), as well as individual vehicles.
EDS Agenda 2.10.18 Page21
3. Programme Participants
3.1 Local administrations
The Programme is open to participation by cities, municipalities and other bodies administering large urban areas in one of the EVI member countries. Participation of urban administrations from countries not in EVI is possible as an exception and under the conditions outlined in 6.1.
The urban administration participating in the Programme should comply with requirements in the following areas:
EVI City Representative Appoint a person of reference (the EVI City Representative) for all communications with the EVI Country Representative from its member government, the EVI Global EV Pilot City Programme Coordinator and other participants in the Programme.
Liaison with the EVI and the EVI Advisory Board Identify an EVI City Representative Coordinator who will represent all EVI City Representatives within a same country at EVI Advisory Board meetings. This is to ensure smooth coordination for all activities developed under the Programme and the decisions collectively taken by the EVI Advisory Board. For urban administrations that are from EVI countries, the EVI City Representative Coordinator can be the same individual also acting as EVI Country Representative.
Electric mobility action Have a comprehensive and ambitious portfolio of support policies, measures and programmes for the electrification of urban mobility, in at least three of the following areas: urban planning, infrastructure and charging technology, mobility as a service, public transport fleets, freight deliveries, personal passenger vehicles (including cars and two wheelers).
Data, policies and initiatives reporting Develop and update on a yearly basis two summary documents:
- The EVI City Data Report, aiming at gathering key parameters of EV deployment in urban environments, including:
i. the number of vehicles registered; ii. vehicle activity and loads; and iii. the number of home, workplace and publicly accessible chargers
- The EVI Urban EV Policy Support Overview, an overview of the electric mobility support measures and initiatives deployed within the urban administration. This document includes a summary of support measures put in place by the administration that have or had an impact on EV deployment, as well as references to relevant documents (such as legal texts, reports and contact points). It shall demonstrate the ambition of the urban administration to support EVs.
Both reporting items (EVI City Data Report and EVI Urban EV Policy Support Overview) shall use a template developed for this purpose by the EVI Coordinator, following a consultation with the EVI Advisory Board and an agreement on their contents. EDS Agenda 2.10.18 Page22
They shall be submitted on a yearly basis to the Programme Coordinator to be shared subsequently with other EVI City Representatives, EVI Country Representatives and EVI Partners and Programme partners (see 4.2) and for the development of EVI publications on cities, such as one or more sections of the EVI Global EV Outlook annual publication, and eventually made publicly available1.
Engagement in the EVI Global EV Pilot City Forum and other networking activities:
- Liaise with the EVI City Representative Coordinator and the EVI Country Representative for the periodical organization of the EVI Global EV Pilot City Forum (see 4.1.).
- Enable the EVI City Representative to participate in networking activities, including in particular the EVI Global EV Pilot City Forum (see 4.1.), with the goal of supporting experience sharing and the adoption of good practices.
- Facilitate the participation in networking activities of the Programme (including the EVI Global EV Pilot City Forum) of stakeholders (e.g. automakers, utilities, mobility service providers, financial institutions, non-governmental organisations) cooperating with the administration for the deployment of urban electric mobility solutions, to enable the adoption of good practices by other administrations participating in the Programme.
- Public awareness: contribute to the development of campaigns aiming to raise public awareness on EVs, possibly including the submission of proposals for the attribution of one or more awards, to be assigned during the EVI Global EV Pilot City Forum, to initiatives that were especially relevant for the promotion of electric mobility.
4. Programme Coordinator and EVI Programme Partners
4.1. Programme Coordinator
The management and operation of the Programme shall be developed as one of the EVI tasks and shall be intended as part of the development and implementation of the EV30@30 Campaign.
The Programme will be coordinated by the EVI Global EV Pilot City Programme Coordinator (the “Programme Coordinator”) under the guidance and in close cooperation with the EVI co-leads. The main role of the Programme Coordinator is to encourage and facilitate the dialogue between Programme participants and to make sure that they can mutually benefit from the development of the Programme. In particular, the Programme Coordinator shall take care of the following activities:
Act as the central point of contact for Programme Participants.
Reach out and maintain contacts with Cities, Municipalities and local administrations to grow the network of cities participating in the Programme, with the support of partner organisations.
1 Availability of the reporting documents to the general public is subject to consent from any EVI City Representative or other entity that provides the reporting information and consensus among stakeholders involved in the Programme on the sharing and dissemination of the compiled information. EDS Agenda 2.10.18 Page23
With the consent of the individuals who provide their contact details, keep an up-to-date list of EVI City Representatives and their contact details (EVI Pilot City Programme Contact List), ensuring its availability for other EVI City Representatives, EVI City Representative Coordinators, EVI Country Representatives and EVI Partners for consultation and exchanges. The EVI City Representative Coordinators and the EVI Country Representatives shall actively support the EVI Coordinator to ensure outreach and smooth communications with urban administrations within their country, especially for initial outreach and in case of changes of contacts.
Hold and manage an on-line repository for the EVI Urban Policy Support Overviews and the EVI City Data Reports (the EVI Pilot City Information Platform), as well as the information shared by EVI Programme Partners.
Support the organization of an annual networking event, the EVI Global EV Pilot City Forum, allowing EVI City Representatives, EVI City Representative Coordinators, EVI Country Representatives, EVI Programme Partners and other relevant stakeholders to share insights and experiences on EV deployment.
Represent the Programme at various relevant events such as workshops and conferences to share outputs and findings from the Programme acitvities, and inform and engage potential new Programme Participants and Partners, when applicable.
The Programme Coordinator can be the same person or entity as the EVI Coordinator or any other person or entity appointed by the EVI Advisory Board during one of its two annual meetings.
Until different dispositions are adopted by the EVI Advisory Board, the Programme Coordinator's role will be performed jointly by the International Energy Agency (IEA) (which is also the incumbent EVI Coordinator), and the Society of Automotive Engineers of China & Shanghai International Automobile City (CSAE-SIAC). Both entities will constitute the EVI Global EV Pilot City Programme's Joint Secretariat. They will perform the following EVI Global EV Pilot City Programme Coordinator's roles as follows:
CSAE-SIAC will focus on: - outreach efforts of the EVI Global EV Pilot City Programme in Asia; - providing support for the organisation of the annual EVI Global Pilot City Forum; - the development of collaboration activities between the EVI Global EV Pilot City Programme and the private sector. The IEA will be responsible for any other functions identified for the Programme Coordinator by the EVI Advisory Board and agreed to by the IEA.
The IEA and CSAE-SIAC will not assume any joint or several liability in respect of their joint role as Programme Coordinator.
The activities performed by the Programme Coordinator are subject to its receipt of sufficient funding and the alignment with its Program of Work, if applicable. The Programme Coordinator shall inform the EVI Advisory Board about misalignments as soon as possible, and propose solutions to correct the misalignment for discussion at EVI Advisory Board meetings. The Programme EDS Agenda 2.10.18 Page24
Coordinator’s acceptance and use of funding shall be in accordance with its own regulations, rules, policies and procedures, if applicable.
4.2. Programme Partners
The EVI Programme Partners, including a number of individuals from partner organizations (e.g. NGOs, IGOs, private businesses, foundations, expert organisations, national and state governments), are expected to support the development of the Programme. In particular, they are expected to help broaden the scope of activities and the network by involving relevant stakeholders.
EVI Programme Partners shall provide support, leveraging on their own networks and activities and depending on the scope of action and agreements defined with each of them. As indicated in the EV30@30 Campaign Document, support is expected in the following areas:
Outreach to and facilitation of communications between the Programme Coordinator and urban administrations for their participation in the Programme.
Sharing information such as outputs, reports, data and contacts on various aspects of electric mobility that have relevance for the participants to the Programme and, more broadly, EVI governments.
Cooperating with the EVI to provide support for policy development to EVI City Representatives, EVI City Representative Coordinators and EVI Country Representatives seeking it.
Providing financial or in-kind contribution (e.g. staff time) to develop specific parts of the activities of the Programme
Collaborating on and facilitating participation of EVI Global EV Cities in capacity building efforts in the form of e-learning, webinars or city twinning opportunities.
5. Outputs
The main outputs of the Programme shall include:
1. Establishing and maintaining the EVI Pilot City Information Platform, an on-line tool facilitating the sharing of contacts and electric mobility-related data, policy information and impact of measures to inform EVI City Representatives, EVI City Representative Coordinators, EVI Country Representatives and EVI Programme Partners, and support the development of urban perspectives in the annual EVI Global EV Outlook or other publications.
The content of the EVI Pilot City Information Platform may or may not be made available for the general public, subject to the approval of the EVI Advisory Board and the Programme Coordinator, following their initial establishment and taking into account the views of EVI City Representatives.
2. Convening every year the EVI Global EV Pilot City Forum, a networking event aiming to facilitate exchanges amongst EVI City Representatives, EVI City Representative Coordinators, EVI Country Representatives, EVI Programme Partners and other relevant stakeholders with EDS Agenda 2.10.18 Page25
workshops and roundtables and other networking instruments allowing participants to share insights and experiences.
The EVI Global EV Pilot City Forum shall build on the experience already developed in the Pilot City Forums organized in Shanghai and Beijing (China) prior to the establishment of the Programme and could also be used as an opportunity to promote actions at high-visibility events or announcements.
Given the relevance of the experience acquired with the Pilot City Forums already organized in China and the commitment shown by China as EVI co-lead, the EVI Global EV Pilot City Forum shall be hosted, at least initially, on odd years in China, and on even years in another participating City or partnering country.
EVI City Representatives, EVI City Representative Coordinators and EVI Country Representatives shall make proposals to host the event in even years, in coordination with the EVI City Representatives, and discuss these at the EVI Advisory Board meetings taking place at least four months before the date of the event. Changes in the odd/even year schedule of these networking meetings shall be proposed and discussed in EVI Advisory Board meetings taking place at least eight months before the planned date of the event.
Participation in the Programme and the compliance with the requirements listed in section 3.1 shall lead to the attribution of an Global EV City label, aiming to raise the visibility of the actions supporting electric mobility undertaken by local administrations and inspiring new cities to follow suit.
6. Funding
6.1. Use of the EVI budget
For EVI countries, the development of the activities of the EV30@30 Campaign, including the Programme (but excluding the annual EVI Global EV Pilot City Forum), can be implemented using the resources available from the annual contributions to the EVI Coordinator made in accordance with the EVI Terms of Reference.
As for all other EVI tasks, the use of EVI resources for the EV30@30 Campaign and the Programme is subject to the approval of the EVI Advisory Board.
In case of urban administrations located in countries that are not in EVI, participation in the Programme will require specific funding. The contribution for such administrations is set at EUR 7,500. Given the importance of in-country coordination and the complementary nature of national and local policies encouraging EV uptake and use, urban administrations from a country not in EVI should engage with their national administration to participate in EVI.
6.2. Other sources of funding
The allocation of additional funding to the EV30@30 Campaign, including the EVI Global EV Pilot City Programme is subject to the approval of the EVI Advisory Board, as in the case of all other EVI tasks.
6.3. Financing of the EVI Global EV Pilot City Forum EDS Agenda 2.10.18 Page26
Unless the EVI Advisory Board decides otherwise, expenses relating to the organization and hosting of the EVI Global EV Pilot City Forum shall come from funding that needs to be raised in addition to the annual EVI contributions, either by the host city or host country of the event or by additional contributions from one or more EVI participants, or other. This includes, at a minimum, the costs for conference space and related logistics, and may include other costs, such as travel and accommodation for the participants, expenses for meals, site visits and other planned activities. EDS Agenda 2.10.18 Page27
Electric Vehicle Initiative The Electric Vehicle Initiative (EVI) is a multi-government policy forum established in 2009 under the Clean Energy Ministerial (CEM), dedicated to accelerating the deployment of EVs worldwide and providing a platform for countries pursuing the ambition of Electric Vehicles to discuss and exchange ideas. Current EVI members include Canada, China, Finland, France, Germany, India, Japan, Mexico, the Netherlands, Norway, Sweden, the United Kingdom and the United States. Collectively, the EVI members account for the vast majority of the global EV market and stock. EV30@30 campaign
The EV30@30 campaign, launched at the Eighth Clean Energy Ministerial in 2017 and subscribed by most of the EVI members, redefined the EVI ambition by setting the collective aspirational goal for all EVI members of a 30% market share for electric vehicles in the total of all passenger cars, light commercial vehicles, buses and trucks by 2030. The campaign includes several implementing actions aimed at helping achieve this goal in accordance with the priorities and programmes developed in each EVI country. These actions include: supporting the deployment of chargers and tracking progress galvanising public and private sector commitments for EV uptake in company and supplier fleets the scale-up of policy research, including policy efficacy analysis, information and experience sharing, including capacity building establishing the Global EV Pilot City programme, a global co-operative programme aimed at facilitating the exchange of experiences and the replication of best practices for the promotion of EVs in cities. Pilot City Programme Noting that cities will be amongst the first movers in EV implementation, one of the main pillars of the EV30@30 Campaign has been the development of the EVI Global EV Pilot City Programme (PCP). This aims to create a global platform to facilitate communications and cooperation among leading cities from across the world which are interested in stimulating and increasing the uptake of electric mobility within their jurisdictions. EDS Agenda 2.10.18 Page28
Joining City Information Sheet
Name of City/Municipality/Local government:
Brief description of the city/Municipality/Local government’s engagement towards electric mobility:
Information of city representative
Name:
E-mail:
Telephone:
Address:
I consent to the Joint Secretariat of EVI Global EV Pilot City Programme 's (a) collection of my name, email and phone number ("My Details") (b) inclusion of My Details in a database of EVI-PCP contacts, and (c) use and sharing in any way of My Details with EVI and PCP members and partners for any purpose related to the EVI-PCP, EVI and Joint Secretariat of EVI-PCP activities related with electric vehicles.
Signature: Date:
After you signs this form, please emails a scanned signed copy back to Jinchen GUO(E-mail:[email protected]). Thanks!
EDS Agenda 2.10.18 Page29
EVI Global EV Pilot City Programme
Questions and Answers
Q1. What is EVI Global EV Pilot City Programme? A: The EVI Global EV Pilot City Programme is a global cooperative initiative composed of local administrations of member governments of the Electric Vehicle Initiative (EVI), established and operating as part of the EV30@30 Campaign.
Q2. What is the purpose of EVI Global EV Pilot City Programme? A: The Programme aims at facilitating the exchange of experiences and the replication of good practices for the promotion of electric vehicles (EVs) in the urban environment.
Q3. What is the scope of EVI Global EV Pilot City Programme? A: The Programme covers policies, legal frameworks, technologies, protocols, business models (including public/private cooperative solutions) and other innovations conceived for the promotion of electric vehicles including plug-in hybrid, battery electric and fuel cell electric vehicles.
Q4. What is the scope of vehicle categories for EVI Global EV Pilot City Programme? A: The scope of vehicle categories targeted cover personal cars, road-based mass transit (e.g. buses), delivery freight vehicles, fleets (public and private) and dedicated vehicles (e.g. construction vehicles, garbage trucks).
Q5. What are the areas of interest of EVI Global EV Pilot City Programme? A: The areas of interest encompass urban planning, vehicle technologies, infrastructure and charging technologies, business development, public transportation (comprising mass transit and taxi services) and mobility as a service (comprising vehicle – e.g. car or two wheeler- sharing, ride sharing and ride hailing), as well as individual vehicles.
Q6. Who are the paticipants of EVI Global EV Pilot City Programme now? A: The participants including Local administrations, Programme Coordinator and EVI Programme Partners. The Programme Coordinator can be the same person or entity as the EVI Coordinator or any other person or entity appointed by the EVI Advisory Board during one of its two annual meetings. The EVI Programme Partners, including a number of individuals from partner organizations (e.g. NGOs, IGOs, private businesses, foundations, expert organisations, national and state governments), are expected to support the development of the Programme.
Q7. What are the outputs of EVI Global EV Pilot City Programme? A: The main outputs of the Programme shall include: 1.Establishing and maintaining the EVI Pilot City Information Platform；2.Convening every year the EVI Global EV Pilot City Forum.
Q8. What is the funding source for EVI Global EV Pilot City Programme? A: For EVI countries, the development of the activities of the EV30@30 Campaign, including the Programme (but excluding the annual EVI Global EV Pilot City Forum), can be implemented using the resources available from the annual contributions to the EVI Coordinator made in accordance with the EVI Terms of Reference. For the year 2017, the EVI Advisory Board allocated in its April meeting EUR EDS Agenda 2.10.18 Page30
75,000 for the development and implementation of the EV30@30 Campaign, including the EVI Global EV Pilot City Programme.
Q9. What is the Clean Energy Ministerial? A:The Clean Energy Ministerial (CEM) is a partnership of the world’s largest and most forward-leaning economies working together to accelerate the global clean energy transition. Launched in 2010, the CEM pairs the high-level political engagement of energy ministers with sustained initiatives and high-visibility campaigns to provide a powerful combination for accelerating clean energy policy and technology deployment. Learn more at http://www.cleanenergyministerial.org/
Q10. What is the EV30@30 Compaign? A:The EV30@30 campaign redefines the ambition of the Electric Vehicles Initiative (EVI), setting a collective aspirational goal for all EVI members of a 30% market share for electric vehicles (EVs) by 2030. It does so with the aim of taking advantage of the multiple benefits offered by electric mobility for innovation, economic and industrial development, energy security, and reduction of local air pollution. Learn more at http://www.cleanenergyministerial.org/Our-Work/CEM-Campaigns/EV30at30
Q11. What is the Electric Vehicles Initiative (EVI)? A:The Electric Vehicles Initiative (EVI) is a multi-government policy forum created and operating under the auspices of the Clean Energy Ministerial (CEM). It involves non-binding commitments among participating national government ministries to conduct cooperative activities that support the design and implementation of domestic electric vehicle (EV) deployment policies and programs. EVI seeks to facilitate the global deployment of 20 million EVs, including plug-in hybrid EVs and fuel cell vehicles, by 2020. Learn more at http://www.cleanenergyministerial.org/Our-Work/Initiatives/ElectricVehicles.html EDS Agenda 2.10.18 Page31
Information Report
To: Economic Development Subcommittee
From: Economic Development Manager
Date: Tuesday, 25 September 2018
File reference: Document: 2453951 Appendix A: 2466150
Portfolio holder: Councillor Ross Harris
Meeting date: Tuesday, 2 October 2018
Subject: Economic Development Manager’s Report for August and September 2018
Recommendation: THAT the report be received.
Summary This report is to advise the Economic Development Subcommittee of those economic development activities undertaken by the Economic Development Department. The activities described are those that can be discussed in the public domain.
Background Council undertakes a range of activities to assist with economic development and growth in the Hauraki District and has an Economic Development Subcommittee which meets monthly to provide direction and action for projects in the District.
Content Business Friendly Hauraki
Business Growth Services promotion The first Evolve Hauraki Business Series event will take place on 31 October 2018 between 7 and 8.30am at Paeroa College. The focus of this event will be on digital capability building for businesses. Currently a logo competition is being run with Waihi College, Paeroa College and Hauraki Plains College to come up with a logo for Evolve Hauraki.
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Hauraki Coromandel Business Awards The finalists of the Hauraki Coromandel Business Awards have been announced which included the following Hauraki businesses: Number One Electrical (Manufacturing and Trade, Emerging Business, Professional Services) Laughing Pottery (Manufacturing and Trade) Splinta’s Firewood (Manufacturing and Trade, Primary and Rural) Gold Discovery Centre (Tourism and Hospitality) The Refinery (Tourism and Hospitality) Buttercup Dairies (Primary and Rural) Paeroa 24 Fit Club (People’s Choice) Koru Florist & Home (People’s Choice)
Connected Hauraki
Labour Market meeting The Economic Development Officer attended a Labour Market meeting organised by Immigration NZ on 10 September 2018. The main discussions were around how the group was going to operate after the formation of Te Waka. It was decided that an event will be organised for March 2019 with a wider group of participants including sector/industry representatives to create an action plan for the group. Waikato Regional Economic Development Agency – Te Waka The Mayor, Chief Executive and Economic Development Manager attended the inaugural Waikato Economic Summit on 30 and 31 August 2018 at Lake Karapiro. During the summit “Te Waka” was announced as the new name for the agency. Further, delegates were asked to workshop ideas which could be developed into business cases for Provincial Growth Fund applications which would enhance the region’s economic and social landscape. On 5 September Te Waka announced Michael Bassett-Foss to the position of chief executive. Harvey Brookes has been appointed to the position of chief operating officer. Feasibility of Kopu as a Marine and Aquaculture Service Precinct The Economic Development Manager attended a workshop run by the Thames-Coromandel District Council to discuss the feasibility study that is currently being completed on Kopu for a Marine and Aquaculture Service Precinct. Since then a letter of support has been provided to Thames-Coromandel District Council by the Mayor for the development of a business case for the project. Visit from Regional Economic Development Minister The Regional Economic Development Minister Hon. Shane Jones visited Hauraki District along with Thames-Coromandel District and Matamata-Piako District on 10 August 2018. The main focus of his visit was to discuss potential Provincial Growth Fund projects. Provincial Growth Fund The Economic Development team attended a meeting on the Provincial Growth Fund with the Parliamentary Under-Secretary for Regional Economic Development Fletcher Tabuteau on 13 August 2018. The messages he gave can also be found in the new guide to the Provincial Growth Fund (Appendix A).
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Connect Waikato The Economic Development Manager attended the Connect Waikato meeting on 5 September 2018. Topics included an update on the Waikato Chamber of Commerce, an overview of EDNZ leading up to the Economic Development Conference and an update post Economic Summit from Te Waka.
Destination Hauraki
i-SITE and Information Centre Forum The Economic Development Officer attended an i-SITE and information centre forum organised by TCDC. The aim of the forum was: To improve communication across our districts and region To promote more opportunities for new product To engage in more education and awareness of products and sales A round table forum Eddie Morrow from the Waihi i-SITE, Michael Tansey from the Paeroa Information Hub, Diane Drummond from the Hauraki Rail Trail, Jo Tilsley from Positive Paeroa and Hadley Dryden from Destination Coromandel also attended. Regional Cycle Trail Network Meeting The Economic Development Officer attended the Regional Cycle Trail Network meeting on 27 July 2018 and 18 September 2018. A lot of focus was put on the Waikato Region Cycle Trails Network Programme Business Case. This will be addressed in the report: MagiQ number …. Harvey Brookes also presented some results from the Economic Summit and discussed what this could mean in terms of focus on cycle tourism in the Waikato. Infometrics The Economic Development Officer and the Policy Analyst met with Benje Paterson from Infometrics for an update on 14 August 2018. He mentioned that next year, Central Government’s budget will be calculated using the living standards budget and will be measured according to the wellbeings. It was also decided that it would be good to include an Infometrics session with new staff as part of the Economic Development induction. Paeroa Information Services Hauraki District Council now has a signed agreement with PIH 2015 Ltd for the provision of information services in Paeroa. This is a one-year agreement from 1 September 2018. Positive Paeroa The Economic Development Subcommittee Chair and the Economic Development Officer met with the Chair of Positive Paeroa and the Town Promoter on 27 August 2018 as required in their agreement with HDC. The meeting was very constructive and any questions around the new agreement were discussed. Positive Paeroa Business After 5 The Economic Development Officer attended the Positive Paeroa BA5 on 19 September 2018.
Hauraki Inc.
China trip 2018 A verbal update will be provided on this trip.
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Kiwidotcom Kiwidotcom is an international training academy based on the North Shore of Auckland. The company offers a student exchange programme for students in PR China to visit New Zealand. During July/August the company, together with Miller Avenue School held three exchange programmes for approximately 90 students. The students received a Mayoral Welcome in Council Chambers, a pōwhiri at the school and attended classes. NZTE Investment Workshop The Economic Development Officer attended a workshop called Building a Business Case on 6 September 2018. The workshop was run by NZTE and Deloitte and was designed to help people working in economic development understand what sort of business cases investors are looking for. This will help economic development staff when working with clients seeking investment, especially when NZTE needs to be involved. A work book was provided that can be passed on to these clients.
Built for Business Hauraki
Community Wireless Trust project Hauraki Meetings were held with Positive Paeroa, Paeroa Information Hub and the Waihi i-SITE to discuss the free wifi project. Discussions are still in progress about how these organisations could support the project but the feedback was very positive.
David C Fielden ECONOMIC DEVELOPMENT MANAGER
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Photo credit: David Ward
POWERING UP AOTEAROA – NEW ZEALAND’S REGIONS
THE GUIDE TO THE PROVINCIAL GROWTH FUND EDS Agenda 2.10.18 Page36
Photo credit: Alister Newton EDS Agenda 2.10.18 Page37
CONTENTS INTRODUCTION
Introduction 3 The New Zealand Government has allocated three billion dollars This guide 4 over a three-year term to invest in regional economic development through the Provincial Growth Fund (PGF). The Provincial Growth Fund 5 The PGF is a significant opportunity to realise the remarkable PGF Investment Tier 1 9 potential of the regions of Aotearoa New Zealand. It can provide PGF Investment Tier 2 12 funding to accelerate growth, and to kick start new initiatives. PGF Investment Tier 3 15 Provincial New Zealand is the heartland of Aotearoa, and home Key considerations to some of our most creative and innovative people. Much of for investment decisions 18 New Zealand’s economy rests on the successes of the regions, with tourism, forestry and the primary industries all strong contributors to New Zealand’s export economy. However, some regions are challenged with higher unemployment, lower productivity, finding skilled workers and people who are struggling economically, which puts their wellbeing at risk. Through the PGF, the Government seeks to ensure our regions and our people across New Zealand can reach their full potential as part of an economy that is sustainable, inclusive and productive.
3 EDS Agenda 2.10.18 Page38
THIS GUIDE
This guide outlines information about the types of projects and the considerations for preparing and submitting a strong application to the PGF.
We welcome variety and ambition, and encourage all aspiring applicants to submit their proposals if they meet the PGF’s criteria.
More information on the PGF including how to apply can be found here: www.growregions.govt.nz
He waka eke noa.
A canoe which we are all in with no exception.
4 The Guide to Provincial Growth Fund EDS Agenda 2.10.18 Page39
THE PGF STRUCTURE OF THE PGF OBJECTIVES The PGF has three investment tiers:
Regional Sectors Infrastructure Support of Initiatives targeted Regional economic at priority and/or Infrastructure development high value sector projects that enable projects, feasibility opportunities. regions to be well The purpose of the PGF studies and This includes the connected from is to accelerate regional capability building One Billion Trees an economic and development, increase identified within Programme. social perspective, regional productivity, regions. including rail, road and contribute to more, and communications. better-paying jobs. This purpose is supported by the following objectives:
• Creating jobs, leading Applications can be made to any of these tiers, or to two or more tiers to sustainable economic where they are inter-connected. For example, development of a new growth tourism attraction may be accompanied by investment in the local road • Increasing social inclusion network to improve visitor access, and investment in building local skills and participation in tourism and hospitality. • Enabling Māori to realise Where applications touch on areas that receive government funding aspirations in all aspects from elsewhere, for example, land transport infrastructure – assessment of the economy will consider the purpose and priorities of that funding. We will work to ensure that funding comes from the most appropriate source. • Encouraging environmental sustainability and helping New Zealand meet climate change commitments Fund exclusions alongside productive use of land, water and other The following are not eligible for PGF as they are funded resources by other means: • Improving resilience, • Housing (unless it is a core part of a broader project particularly of critical and would not otherwise be required) infrastructure, and by • Water and large-scale irrigation diversifying our economy • Social infrastructure (such as hospitals and schools)
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He aha te mea nui o te ao? He tangata, he tangata, he tangata
What is the most important thing in the world? It is people, it is people, it is people.
KEY CRITERIA
Proposed PGF projects will be assessed against the following key criteria:
Does the project Does the project Is there a link to the Will the project be lift the productivity create additional regional priorities, well managed, well potential of a value and avoid and are key local governed and have region or regions? duplicating existing stakeholders an appropriate risk/ Does it contribute efforts? supportive? reward trade-off? to the PGF objectives?
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GEOGRAPHIC FOCUS TAI TOKERAU/NORTHLAND
All regions of New Zealand are AUCKLAND eligible for funding under the PGF, excluding the metropolitan areas of Auckland, Wellington and BAY OF PLENTY Christchurch. Six “surge” regions WAIKATO have been prioritised for the PGF: TAIRĀWHITI/EAST COAST • Tai Tokerau/Northland • Bay of Plenty TARANAKI HAWKE'S BAY • Tairāwhiti/East Coast • Hawke’s Bay MANAWATŪ-WHANGANUI WAIRARAPA • Manawatū-Whanganui WELLINGTON • West Coast NELSON-TASMAN
Projects which are multi-regional MARLBOROUGH in scope will also be given priority. WEST COAST
CANTERBURY
OTAGO
SOUTHLAND
Ki te kahore he whakakitenga ka ngaro te iwi.
Without foresight or vision the people will be lost. EDS Agenda 2.10.18 Page42
SUPPORTING MĀORI DEVELOPMENT
The PGF aims to support Māori development and prosperity. The Māori economy is a key contributor to economic development and the PGF provides an opportunity for investment in Māori-led initiatives across regional Aotearoa New Zealand to help them reach full potential.
Māori have large asset holdings tourism sectors. The scale and employment, education and are governors and managers objectives of the PGF provide and training, and the PGF of natural resources, many of a significant opportunity for can support such initiatives, which are located in the regions. Māori to unlock and realise the including through schemes Māori have a regional presence potential of their resources. like He Poutama Rangatahi and significant economic interests There is also an opportunity (Youth Employment Pathways). in food and beverage, forestry and to support more Māori into
8The Provincial Growth Fund guide to the Investment Statement The Guide to Provincial Growth Fund EDS Agenda 2.10.18 Page43
PGF INVESTMENT TIER 1 REGIONAL
PROJECTS, CAPABILITY BUILDING AND FEASIBILITY STUDIES
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DEVELOPING REGIONAL SKILLS AND CAPABILITY
As well as investing in jobs growth, not in employment, education or investment timeframe and the PGF represents an opportunity training. This includes investing beyond, and that include a clear to grow the skills and capability of beyond just getting people outline of what support will be locals in the regions to equip them work-ready; it’s also about provided to both employers and for sustained work and pathways investing in building the skills to the potential local labour force to higher incomes, by matching and capability of people in the to get them ready to seize this them with the jobs in their regions. regions to be able to manage opportunity. Active employer The PGF opens up significant and govern PGF and future participation and ongoing support opportunities to invest in a more projects effectively, so that a to upskill people is encouraged. tailored and location-specific way transformative legacy can result. to support local labour force and Proposals should demonstrate employers to come together. The The PGF welcomes proposals how they complement, rather than outcomes that the PGF seeks to that can demonstrate how replicate or substitute, existing contribute to include: increased they will lead to an increase programmes and government local employment and earnings, in sustained local employment support, and how they are linked and lower rates of young people outcomes, both within the PGF’s to regional priorities. REGIONAL PRIORITIES AND ACTION PLANS Most regions have economic sectors, or natural and cultural context of the wider regional action plans. These typically features. Regional action plans and national transport networks. outline the region’s ambitions, are good mechanisms for In addition, applications should and are used to identify priorities ensuring that projects are have been shared with key for investment, including aligned with regional priorities. regional stakeholders, so they government funding. Transport infrastructure projects are informed and have the The PGF should be seen by or proposed investments with opportunity to give input and regions as an opportunity transport components should show support. These regional to upscale their planning, be included in Regional Land stakeholders include local and further highlight their Transport Plans, so that they are government, mana whenua, and comparative advantages, integrated into regional transport major business and community such as specialisation in specific planning and viewed in the stakeholders where appropriate.
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PGF INVESTMENT TIER 1 REGIONAL
Projects funded from the PGF will be considered as part of an overall portfolio of the Government’s support for the region, rather than as stand-alone initiatives. Each individual project should fit well into an overall plan for enhanced economic development for its region.
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PGF INVESTMENT TIER 2 SECTORS
12 The Guide to Provincial Growth Fund EDS Agenda 2.10.18 Page47
PGF INVESTMENT TIER 2 SECTORS SECTOR PRIORITIES
All sectors are eligible to apply The PGF can help strengthen aims to support projects that increase local skills, and reduce to the PGF. Regional action plans our economy and accelerate the environmental impacts while generally highlight areas of focus transition from a volume-based at the same time enhancing for regions, including comparative export economy (commodities), the productivity of the sector, advantages in certain sectors. to a value-based economy. Sector such as through the uptake of Consideration will be given to projects should take into account digital technology. the markets that each sector environmental impact and the We expect to see projects from the food and beverage, tourism supplies, and in particular to region’s resilience, as per the and forestry sectors being funded their export potential, so that PGF’s objectives. as these align with international we are maximising the return In line with our goals for resilience demand, and are strong sectors for New Zealand. and sustainability, the PGF in the surge regions.
of high-value tourism. Priorities Tree planting helps meet for the tourism sector, such as climate change targets, reduces encouraging visitation across the soil erosion, supports more year and across more regions, Food and Beverage sustainable use of land, water will also be supported through and other natural resources, and The PGF welcomes proposals the PGF. We also expect to see provides opportunities for Māori for projects that increase the initiatives that further develop capability and employment Māori culture as an asset for to develop their land. of local workers (thereby New Zealand tourism. The One Billion Trees Programme reducing reliance on migrant aims to ensure that the right workers), and use land in ways trees are planted in the right which are economically and landscape. This means planting environmentally sustainable. a mix of exotic and native tree There may also be projects Forestry species in private, public and that deploy technology to The PGF supports the enhance productivity, reduce Government’s One Billion Trees Māori owned land and a mix of environmental impacts, or Programme to plant one billion permanent trees and commercial add value to the end product trees across the country over forests that can be harvested in (for example, use of robotics, ten years. the future. or sensors on the farm). Forestry has a range of benefits Commercial forestry initiatives which include encouraging need to align with regional regional economic growth, transport plans and support creating sustainable employment regional wood processing opportunities and lifting social aspirations, research and Tourism wellbeing. Projects that are In the tourism sector, the PGF will environmentally – as well as development, skills training prioritise investment into regional economically – beneficial will and new technologies, and infrastructure to support growth be favoured. eco-recreational initiatives.
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CASE STUDY TŌTARA INDUSTRY PILOT
The PGF provided $450,000 its establishment as a market. processed into higher value wood towards a two-year pilot to products could increase the value The pilot will investigate whether test the validity of establishing derived by up to $60 million these barriers are surmountable a sustainable indigenous with a further 200 direct jobs and, if they are, will facilitate the tōtara wood products industry and 1,750 indirect jobs created. development of a new sustainable in Northland. industry with multi-million dollar The project will be led by Tōtara could provide an potential. It could also help the Tōtara Industry Steering opportunity for New Zealand diversify Northland’s economy Group, which is made up of to develop a new niche industry and sustainably grow jobs in Scion, the Ministry for Primary producing high value native the region. Industries, Northland Tōtara wood products. Working Group, Tai Tokerau Research indicates that the Māori Forests Inc., Northland Inc., Tōtara is an underused resource industry has the potential to an industry representative and within the wood products industry produce $7.5 million from tōtara an independent chair. but, despite its economic potential timber per year within three and the abundant supply of it in years – that equates to 20 direct The $1 million pilot has also Northland, the industry has faced jobs and almost 80 indirect jobs. secured funding from Scion a number of barriers preventing The potential for tōtara to be and Northland Inc.
Through the One Billion Trees Programme the Government has signalled its intention to use forestry as a platform for building a sustainable and economically vibrant future for our provinces. It will support this by providing opportunities to create employment, optimise land use, mitigate climate change, protect the environment and ensure sustainable fibre has a key role in the future low carbon economy.
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PGF INVESTMENT TIER 3 INFRASTRUCTURE
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The PGF prioritises two categories of infrastructure investment that are central to regional economic development: transport and digital enablement (including connectivity).
Transport but which otherwise meet emergency services. Regional Transport networks that are the government’s criteria and ports and airports need to be fit-for-purpose for the safe objectives for the PGF. seen in a wider national context. and timely movement of people To receive funding for any For example, investments in ports and freight are essential for of these purposes, proposed may require complementary businesses and communities, projects would need to align investments in roading and in both regionally and nationally. strongly with the specific rail, and the potential impacts objectives of the PGF, above on other regions need to be taken Transport investment in and beyond the priorities of into account. The Government will New Zealand is well-orchestrated current programmes of land work with regions to build a shared through the National Land transport investment. understanding of wider issues Transport Programme (NLTP) and interdependencies, which will and Regional Land Transport Projects should also be included inform advice on port and airport- Plans (RLTPs). These remain the in RLTPs and other regional related investments and bring key mechanisms for transport strategic planning documents. a national perspective. planning, and the National Land This will ensure that integrated Transport Fund (NLTF) continues regional transport planning Clarity about ownership and to be the primary funding source continues, proposed projects fit management of whole-of-life costs for land transport initiatives. with regional transport priorities, will be important considerations the process for regions to access for all long-lived asset classes. The PGF provides scope for PGF funding is streamlined, and transport investment that Digital Enablement funding for projects comes from generates additional benefits Digital technologies offer great the most appropriate source. for regions and accelerates potential for lifting productivity, their development. Investment proposals relating and provide opportunities to to rail, ports, wharves and airports To support this intention for develop new skills in our regions. and other non-land transport additionality, the PGF will be The PGF will invest in digital infrastructure should demonstrate used to: enablement projects to capture a clear link to PGF objectives employment and business • provide a source of funding and criteria, and how they will fit opportunities in the regions. for local authorities that face with a region’s transport network. This can involve investing in significant difficulty in meeting As the rail system is a national network infrastructure to improve local share requirements network, decision-making will the reach, reliability and quality take account of key policy work • bring projects forward where of digital connectivity. It can programmes underway – in they may not be prioritised also include investments to ensure particular the Future of Rail. under the NLTP but are people are able to make use of strategically important to a A number of smaller provincial the digital connectivity available region’s productivity potential airports support tourism while to them, and ensuring people • provide a source of funding others have a role as providing living in remote communities for projects that do not secure service essentials in remote can take advantage of funding through the NLTF communities, such as access to digital technologies.
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CASE STUDY PGF INVESTMENT TIER 3 INFRASTRUCTURE RUAPEHU ALPINE LIFTS
The PGF was set up to provide as well as a $10 million loan can take place. It is projected to financial assistance in a variety from the PGF. generate 150 jobs for building of ways – from traditional grants, Ruapehu Alpine Lifts is a public and operating the gondola, and to a variety of debt or equity benefit entity – it’s a not-for-profit potentially a further 400 through investments. Funding provided that is restricted from providing associated activities. depends on particular projects, a return to shareholders – and 2,400 passengers can be the applicants’ circumstances operates in an abnormal risk transported per hour in 10 person environment. Therefore it is and the PGF’s criteria. cabins – a journey that will take difficult to raise capital through The construction of a high speed five minutes. It is forecast to conventional means. The PGF is generate 500,000 additional gondola on the Whakapapa ski lending the money to Ruapehu visitor days by 2025. field by Ruapehu Alpine Lifts was Alpine Lifts as while it’s a not-for- identified as being transformative profit, it’s a commercial entity and For a district experiencing for central North Island as it the money will be repaid if the population decline through provides a year-round destination project is successful. the waning of other sectors, for tourists. The total cost of the The gondola has the potential to this project meets the PFG’s project is $25 million, with funding be a key investment in the region, investment criteria – it supports coming from local government, creating the ‘must do’ attraction job growth and has an impact investors, Ruapehu Alpine Lifts, around which other investments on the region as a whole.
The Provincial Growth Fund guide to the Investment Statement 17 EDS Agenda 2.10.18 Page52
KEY CONSIDERATIONS FOR DECISIONS
INVESTMENT TYPES RISK AND REWARD CAPACITY TO DELIVER CO-CONTRIBUTION INVESTMENT ATTRACTION FUNDING TYPES
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KEY CONSIDERATIONS FOR INVESTMENT DECISIONS Investment types It is likely there will be a number of differing types of investments made under the PGF:
Non-commercial Quasi-commercial Commercial An investment delivers An investment generates An investment may be a public benefit but has a revenue stream, but this viable for the private sector, no revenue stream is insufficient to be funded but PGF invests to realise e.g. investment in capability by the private sector. a public benefit that would development or in a road not otherwise occur. improvement.
Risk and reward at both the direct and indirect clearly outlined in its proposal, All PGF projects must provide benefits from their project including the risk of not achieving clear benefits which can be proposals, and demonstrate the expected benefits. Suitable linked to its goal of lifting the overall value created in both mitigations or contingencies to productivity of the regions of economic and non-economic manage these risks should be Aotearoa New Zealand. We terms. This can include social, highlighted. Funding decisions expect projects to provide a net cultural, environmental and will weigh up the reward and benefit, that is, value created by community benefits. Each project value created against the risks the PGF’s investment exceeds proposal should include its of projects. The PGF may also its cost, although this may be whole-of-life costs, bearing in consider whether projects might considered across a portfolio mind that ongoing operational be better funded through other of projects, where each adds to costs will not typically be government programmes and a beneficial sum of parts. We funded through the PGF. The sources, and work with applicants encourage applicants to look risks for each project must be to identify those where relevant.
PGF investments will not crowd out private or other public investments.
CAPACITY TO DELIVER
Projects and initiatives need PGF will look for demonstrated make clear how projects to have the right skills and capability within the team, will be delivered on time and resources to deliver intended a track record of success, budget, with benefits realised benefits and ensure success. and / or partnering with others and risks managed. When evaluating projects the to deliver. Applications should
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CO-CONTRIBUTION
The PGF will look for contributions to come from applicants, or related parties. Exceptions may be considered where the benefits to the region or to New Zealand overall are high (e.g. for projects supporting those not in employment, education or training into employment).
The PGF is looking to applicant or related third party benefits are shared beyond the leverage investment from (in line with other government specific firm sponsoring the private enterprise, iwi and programmes). project, and where government philanthropy. Projects that contribution creates additional Co-contribution can be in-kind are deemed commercial or value – for example, increased rather than financial where quasi-commercial will require employment opportunities, appropriate for the project. a 50% contribution from the increased research capability, applicant, or a related third party. Co-investment with individual or a contribution to regional Grants provided to commercial firms may occur if they generate infrastructure for multiple projects will generally require opportunity and value that would beneficiaries. a 60% contribution from the not otherwise occur, where
Examples of co-investment a range of apprenticeships to the local transport and with private industry for local people, with logistics network than would might be for a business supporting pastoral care. otherwise occur, where they that is proposing to invest • The PGF might co-fund would deliver more benefits in a new factory / processing a research facility attached to a community or region. facility: to the plant, if the research Please check • If the location has is of value to the regional www.growregions.govt.nz above-average rates economy (e.g. research of people not in education, into monetising a local or contact us for more employment or training, natural resource) commercial investor and the PGF might partner • The PGF could co-fund more investment attraction with the business to fund extensive enhancements information.
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CASE STUDY H2 TARANAKI
Taking a co-investment approach A further $950,000 PGF funding Economic Development has allowed for the establishment has been allocated for Hiringa Strategy which was launched of H2 Taranaki. It is envisaged Energy to develop hydrogen in April 2018. It extends the that H2 Taranaki will stimulate infrastructure in Taranaki. capability and capacity honed in the growth of innovative hydrogen This co-investment model across the region’s energy sector over projects and advance the take-up local government and private decades of successful operation, of hydrogen technologies in enterprise aims to establish a during which time Taranaki has Taranaki, helping position the place for Taranaki in an emerging established world class industrial region on the world stage as hydrogen industry with a particular and technical abilities. This rich technically advanced, sustainable, focus on zero emissions and heavy history means the region has all clean and green innovators. and long distance transport. the hydrogen market application for demonstration projects in one A feasibility study and roadmap Co-investment brings geographic area. development is required to together the hydrogen supply discover and plan activities for infrastructure expertise from H2 Taranaki has the potential to H2 Taranaki. These activities cost Hiringa Energy with the purpose generate new hydrogen projects, $190,000 with $140,000 funded of Venture Taranaki – to drive create jobs and attract technology from New Plymouth District and facilitate sustainable, diverse investments, working with public, Council, Hiringa Energy and economic growth in the region. private and not for profit sector Venture Taranaki. The balance This work neatly aligns with partners to make a sustainable has been secured from the PGF. Tapuae Roa, Taranaki’s Regional difference to the region.
Naku te rourou, nau te rourou, ka ora ai te iwi.
With your basket and my basket the people will live.
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FUNDING TYPES
The PGF will work with applicants commercial projects a certain level of revenue for to decide suitability of funding (noting there may be some a project, the PGF may decide type for each project, from the extra caveats for transport to underwrite that revenue following available options: projects). Loans will be made risk to guarantee a certain available to projects on suitable revenue stream. Grants and agreed terms. The PGF will • Equity Non-commercial projects will look for debt collateral that is In some circumstances, in general be funded through as strong as possible. the PGF may take an equity grants (taking into account • Underwrite position (part-ownership) the required co-contributions The PGF may offer to outlined earlier). In addition, in a project. Typically, this ‘underwrite’ the risk of a feasibility studies – projects that will be where the project project; this is likely to take the will help define and scope future, cannot support further debt, form of guaranteeing a certain larger projects – are likely to be or where there is sufficient funded via grants. outcome for a project, lowering extra return from the project the risk for other potential which the Government should For quasi-commercial investors. The PGF is more benefit from. and commercial projects, likely to underwrite projects PGF will select primarily from in order to accelerate them by Attracting third party investors debt, underwrite or equity: making their parameters more The PGF may facilitate matching • Debt certain, rather than in solely proposed projects with Debt is the preferred financial terms. For example, potential investors where this mechanism for PGF funding if a project estimates a certain may help remove barriers to of quasi-commercial and volume of visitors to generate their commitment. EDS Agenda 2.10.18 Page57
The PGF represents a major opportunity to unlock barriers to growth, accelerate existing programmes, and kick start new opportunities – including support for sustainability and Māori economic development.
Applicants are encouraged to set aspirations and ambitions high, so we can create a step-change in regional prosperity for our future.
MORE ABOUT THE PROVINCIAL GROWTH FUND
The PGF is managed by the Expression of Interest (EOI) The information you provide Provincial Development Unit If you are unsure whether your will help us to assess and which works in partnership project is eligible for the PGF, evaluate eligible projects with regions and across you could submit an Expression and investment opportunities. government to support of Interest to help us understand One of our regional advisors its delivery. your proposal and eligibility. will contact you to discuss your application, and any More information, including Submitting an application Expression of Interest and additional information needed. If you are confident your project Application forms are available They can provide you with is eligible, please submit an at www.growregions.govt.nz advice and support where application form. necessary, including advice to help coordinate central government support.
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WWW.GROWREGIONS.GOVT.NZ
MBIE 3911 EDS Agenda 2.10.18 Page59
Information Report
To: Economic Development Subcommittee
From: Economic Development Officer
Date: Tuesday, 25 September 2018
File reference: Document: 2324465 Appendix A: In document
Portfolio holder: Councillor Ross Harris
Meeting date: Tuesday, 2 October 2018
Subject: Economic Development Subcommittee – 2018 Work Programme
Recommendation: THAT the report be received.
Purpose The purpose of this report is to present a forward work programme for the Economic Development Subcommittee for discussion and information purposes.
This is a standing item on the Subcommittee’s agenda. The Subcommittee is welcome to make comment to or revise the programme as required.
Changes to Work Programme since July 2018 1. The Deputy Mayor, Economic Development Chair and Economic Development Manager will provide a verbal report on the recent China trip at the 2 October 2018 meeting. 2. The new CEO and COO of Te Waka (Waikato REDA) will attend the 2 October 2018 meeting to introduce themselves and Te Waka. 3. The Positive Paeroa draft business plan will be presented to the Economic Development Subcommittee on 2 October 2018. 4. A report will be presented at the 2 October 2018 meeting on the Waikato Regional Cycle Trail Network Programme Business Case. 5. A report will be presented at the 2 October 2018 meeting on the Electric Vehicle Initiative Global EV Pilot City Programme. 6. The review report on the Town Promotions organisations will be presented at the 30 October 2018 meeting.
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7. The Waihi i-SITE Quarterly Funding Accountability Report will be presented at the 30 October meeting.
Rebecca Jenks ECONOMIC DEVELOPMENT OFFICER
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Appendix A
Economic Development Subcommittee – 2018 Work Programme
ECONOMIC DEVELOPMENT SUBCOMMITTEE
Proposed Work Programme for 2018 Meeting date Items 30 January 2018 Quarterly reports and presentations from Town Promoters and Visitor Centres ✓ Waihi Gold Discovery Centre financial reports ✓
27 February 2018 Infometrics annual update (including comparison of HDC economic statistics to other rural authorities) ✓ Verbal update on regional EDA developments and plans ✓ Report regarding funding for the Hauraki Coromandel Business Awards 2018 ✓ Proposal for wireless broadband from the Community Wireless Trust ✓ Report regarding the Tourism Data Domain Plan – Stakeholder Workshop ✓
27 March 2018 Discussion on Council’s procurement policy and local procurement approach Update on Motorhome Friendly Hauraki project Review Destination Coromandel’s Statement of Intent Report with proposed reporting framework for Destination Coromandel and Town Promotions and Information Centres Update on the Waikato Regional Economic Development Agency from Harvey Brookes (Waikato Means Business) ✓ Report proposing a Strategy Planning Workshop ✓ Report on the Economic Development China Trip 2018 ✓ Statement of Intent workshop with Destination Coromandel ✓ 1 May 2018 Quarterly reports and presentations from Town Promoters, Visitor Centres and Destination Coromandel CEO Report Hauraki Rail Trail Charitable Trust May 2017 Update on regional EDA developments and plans Discussion on Council’s procurement policy and local procurement approach ✓
29 May 2018 Report reviewing the decision framework for supporting development (trial period began 30 May 2017) ✓ Update on Motorhome Friendly Hauraki project ✓ Quarterly reportss and presentations from Town Promoters, Visitor Centres from Waihi i-SITE and Destination Coromandel ✓ Quarterly reports from Town Promoters and Paeroa Information Services – information only ✓ GM report Hauraki Rail Trail Charitable Trust ✓ Destination Coromandel draft Letter of Agreement and Reporting Framework ✓ Report on Destination Coromandel’s Statement of Intent ✓ Report on Economic Development actions resulting from the Economic Development Strategy Workshop ✓
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26 June 2018 Presenting the Hauraki Rail Trail investment brochure Presentation from Waikato Innovation Park Business Growth Advisor ✓ Presentation on the Provincial Growth Fund from the Senior Advisor for the Provincial Development Unit ✓
31 July 2018 Quarterly Annual reports and presentations from Town Promoters, Visitor Centres and Destination Coromandel ✓ Quarterly report Waihi i-SITE ✓ Annual reports from Positive Paeroa and Paeroa Information Services will be received for information only ✓ Business Growth Advisor promotion plan ✓ 28 August 2018 No meeting 2 October 2018 Verbal report on China Trip 2018 Introducing CEO and COO of Te Waka Positive Paeroa draft business plan Waikato Regional Cycle Trail Network Programme Business Case Report on the Electric Vehicle Initiative Global EV Pilot City Programme 30 October 2018 Quarterly reports and presentations from Town Promoters, Visitor Centres and Destination Coromandel Review on Town Promoters Quarterly report Waihi i-SITE
27 November Report with draft Economic Development Work Programme for 2019 2018 GM report Hauraki Rail Trail Charitable Trust Standing items Managers reports Economic Development Strategy progress report by pillar.
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ECONOMIC DEVELOPMENT ACTION PLAN, BY PILLAR
BUSINESS FRIENDLY HAURAKI Item Lead Comments A. Work together with the Economic As required Communications Officer to introduce Development Officer further customer focused communications B. Update Business Hauraki page on Web administrator/ Feedback from website Economic Economic Development Development Manager/ Economic Subcommittee as Development Officer required C. Review decision framework for Economic Report 29 May 2018 supporting development Development Manager and Economic Development Officer D. Run Economic Development inductions Economic Will be covered in for new HDC staff Development Economic Manager and Development Economic Manager’s reports Development Officer E. Report from Communications Officer Communications As required regarding communications Officer improvements and priorities. F. Report regarding ‘red tape / red Economic Economic carpet’ work/project Development Development Manager and Manager and Communications Communications Officer Officer to work together on this item. Six monthly report G. As appropriate, case manage key Economic Business as usual business development projects Development item, to be covered in between the councils and investors. Manager and EDO Economic Development Managers report. H. Support the development of Economic investment proposals by collecting and Development Officer. making available key District information for investors. I. Re-write or re-word “Roll out the red carpet, not the red tape” J. Ensure regulatory staff understand the Commence end of requirements of 2018 investors/developers/businesses 1. Regulatory staff to receive comprehensive business training 2. Senior Planner to study Dip. Bus.
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CONNECTED HAURAKI Item Lead Comments A. Liaise with Iwi and Māori to Ongoing identify opportunities for joint ventures or areas where the Council can provide support. 1. Employ Iwi Liaison Officer ELT, HR 2. Work with David Taipari to Mayor, Economic engage and collaborate with Development Chair, Iwi which includes listening to Māori Liaison Officer Māori and identifying projects for collaboration. B. Presentations from Town Economic Reports planned for 30 Promoters, Visitor information Development Officer January, 1 May, 31 July and centres, and receipt of SLA 30 October meeting reporting. C. Reports regarding regional work Economic Economic Development – Waikato Regional Economic Development Manager to ask Waikato Development Strategy and the Manager Regional Council or Waikato Plan. appropriate representative to present six-monthly. Also link in with technical advisor (Charan Mischewski) NB: Not yet reflected in the ED Sub-Committee’s meeting schedule. D. Liaise with Waikato Innovation Economic Park and other regional/national Development organisations to provide business Manager services to Hauraki businesses. E. Keep Economic Development Economic 27 February and 1 May Subcommittee updated on Development regional EDA developments and Manager plans. F. Secure funding for District Commence July 2018 Initiatives HDC 1. Fund Waikato Regional Economic Development Waikato REDA, Agency Economic 2. Identify initiatives and with Development the Waikato REDA prepare Subcommittee business cases and applications for funding from Provincial Growth Fund G. Increase connectedness to local Ongoing business communities 1. Attending BA5 meetings HDC 2. Increase awareness of the Economic Waikato REDA Business Development Officer Growth Services 3. Supporting Hauraki Coromandel Business Awards
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DESTINATION HAURAKI Item Lead Comments A. Actively support tourism and other Economic Development business ventures that make the District Officer an attractive place to live in and visit B. Sub-Committee to define Economic Development responsibilities/expectations for the elected Manager member representatives on Town Promoters and Visitor Information Centres. C. Presentations from Hauraki Rail Trail and Economic Development Destination Coromandel and receipt of SLA Manager for Hauraki reporting. Rail Trail.
Economic Development Officer for Destination Coromandel D. Support the developers of retirement and Economic Development As required. aged care in Ngatea, Paeroa and Waihi Manager through council processes. E. Support the Hauraki Rail Trail Charitable Economic Development Presenting HRT Trust to attract investment from Officer investment developers for tourism and hospitality brochure 26 initiatives to establish along the Hauraki June. Rail Trail, and case manage as required. F. Investigate the potential to access central Economic Development government funding from the Tourism Manager / Economic Infrastructure Fund for the Karangahake Development Officer / Gorge and Kaiaua and other locations as Group Managers appropriate. Engineering and Community Services. G. Investigate the potential to work with Economic Development community groups and iwi to develop new Officer tourism product and/or access central government funding for initiatives such as: a. Kaiaua tourism product b. Mountain bike trails c. Art trail along the HRT. H. Support Hauraki to become a Motorhome Economic Development Update 27 Friendly District Officer March 2018 1. Complete dump station in Waihi 2. Relocate dump station in Paeroa 3. Improve messaging – where you can and cannot park – solution could be digital (e.g. CamperMate app or Responsible Camping Forum) or signage. I. Increase investor confidence in the Hauraki Combined Rail Trail project with 1. Create info/promotion for Hauraki Rail Economic Development TCDC, MPDC Trail investment using a website and Officer and HRT hard copy documents to communicate Charitable this information. Trust. 2. Be involved with the District Plan Economic Development review and contribute with regards to Manager Ongoing tourism, especially in relation to the Hauraki Rail Trail. J. Be involved in Destination Management Community Services Ongoing through: and Development / 1. Scanning the environment
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2. Creating plans to mitigate issues and Destination potential issues Coromandel 3. Identifying key indicators for Tourism Infrastructure Fund (TIF) 4. Assemble all information for TIF 5. Apply for funds through TIF
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HAURAKI INC. Item Lead Comments A. Report on Central Governments Economic As relevant and available direction regarding Economic Development Development Manager B. Other updates to be covered in Economic ED Manager monthly report, Development including report regarding Manager meetings with MBIE, NZTE, MSD etc., or separate report if matter necessitates. C. Meet with staff from the Ministry Economic of Business Innovation and Development Employment, New Zealand Trade Manager and Enterprise, and Immigration New Zealand at least twice a year and thereafter as required. D. Travel to international markets to Economic maintain current investment Development connections. Manager E. Ensure ED Officer is better Economic Commence May 2018 informed of Hauraki Inc. Development activities Manager 1. ED Manager to introduce ED Officer to clients as appropriate 2. ED Officer to receive more cultural training F. More political involvement in Commence May 2018 Economic Development 1. Mayor and ED Chairman to be more involved in Hauraki Inc. projects 2. Meetings with ED Chairman and ED Manager (fortnightly) 3. ED Chair to receive cultural training G. New and existing businesses are Economic Ongoing made more aware of the support Development/Town products available from entities promoters such as Callaghan Innovation, Waikato Innovation Park and Ministry of Business, Innovation and Employment
BUILT FOR BUSINESS HAURAKI Item Lead Comment A. Update the Economic Development Subcommittee on infrastructure requirements as they pertain to new developments as required B. Advocate for more land to be Economic Ongoing rezoned for business and residential Development growth. ED manager to advise Manager District Plan Review Committee
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OTHER DATA / REPORTING Item Lead Comments A. Infometrics annual reporting Economic Reported in March, Development annually. Officer B. Report on Council’s procurement Group Manager, A report to provide the Sub- policy and local procurement Corporate Committee with information approach Services about the local procurement element to the Council’s procurement policy. 27 March 2018 C. Economic Development Manager’s Economic report will include mention of Development connections where appropriate with Manager TCDC and MPDC, as well as work in regional work streams. Or separate report if larger items. D. Information regarding the Economic As relevant and as available Government’s economic development Development direction Manager
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Decision Report
To: Economic Development Subcommittee
From: Economic Development Officer
Date: Tuesday, 25 September 2018
File reference: Document: 2466181 Appendix A: 2457516 Appendix B: 2457785
Portfolio holder: Councillor Ross Harris
Meeting date: Tuesday, 2 October 2018
Subject: Waikato Regional Cycle Trails Network Programme Business Case
Recommendation: THAT the report be received, and
THAT the Economic Development Subcommittee support the ‘transformational’ scenario outlined in the Waikato Regional Cycle Trails Network Business Case and,
THAT a report be taken to the Community Services and Development Committee seeking support in principle for the transformational scenario outlined in the Waikato Regional Cycle Trails Network.
1 Purpose
The purpose of the report is to provide the Economic Development Subcommittee with information on the Waikato Regional Cycle Trails Network Programme Business Case that was commissioned by Waikato Regional Council and Waikato Means Business and to decide if a report should be taken to the Community Services and Development Committee seeking support in principle for the programme.
The matter or suggested decision does not involve a new activity, service, programme, project, expenditure or other deliverable.
2 Background
Waikato Regional Council has been working with regional cycle trail trusts and their partners and key stakeholders since 2016 to identify opportunities to work together and grow economic benefits across the region. This group is called the Waikato Regional Cycle Trails Network (WRCTN) and currently comprises of the following members; Hauraki Rail Trail, Timber Trail,
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Waikato River Trails, Great Lakes Trail, Te Awa River Ride (and through them their key funding partners), Territorial Authorities, Waikato Regional Council, NZ Transport Agency, Hamilton & Waikato Tourism, Destination Coromandel, Destination Great Lake Taupō.
In 2017 the Network agreed to progress a business case for a regional network of trails with co-funding from Waikato Means Business, the Ministry of Business Innovation and Employment (MBIE) and Waikato Regional Council. The Programme Business Case has now been completed and has been presented to the Waikato Mayoral Forum.
It has now been requested by Waikato Regional Council that each member of the WRCTN goes back to their organisation to gain an indication of support for the development outlined as the preferred option in the business case.
The Programme Business Case
The Waikato region has four Great Rides – Hauraki Rail Trail, Timber Trail, Waikato River Trails and the Great Lakes Trail. Together with Te Awa River Ride, these trails are the focus of the Programme Business Case in Appendix A (Appendix B is a summary of the full business case).
Cycle trails attract local, national and international visitors who contribute to the regional economy through local spending. Cycle trail development across the Waikato region has accelerated in the past five years. However, despite committed and passionate investors and partners, completion of existing trails and the development of new trails remains incremental and limited by funding and local capacity.
This business case considers all aspects of the cycle trail network, defined as: • the physical trail assets (trail, signage, interpretation, amenities, trail heads, connections) • transport providers and transport connections • planting and ecological restoration • human capital and regional-level governance • accommodation, food and beverage • bike hire, sales and servicing • local community and businesses • events marketing • package and tour operators.
3 Issue and options
What is being proposed
The recommendation in the business case is that the ‘transformational’ scenario is chosen for the future development of Waikato cycle trails.
The work programme would span over 30 years and will be delivered across the following three tranches:
Tranche 1: Enhance and extend trails • Achieve desired grade consistency and quality to deliver a safe and consistent experience • Agree a region-wide vision for Waikato’s cycle trails, including physical network connections.
Tranche 2: Grow service providers • Identify business potential in local communities • Promote opportunities to invest in local cycle trail services
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• Help service providers get established and support them to deliver to an agreed customer experience • Grow local community support and engagement • Deepen understanding of customer experience and forecast market demand.
Tranche 3: Develop capability and capacity • Establish a region-wide approach to governance • Enable effective stakeholder relationships • Support quality marketing and product development • Leverage opportunities to achieve sustainable funding • Leverage opportunities to achieve sustainable trail governance and operations.
Key benefits of this option
• Regional focus increases trail demand and economic activity in local communities More international, out-of-region and local visitors stay longer and spend more during their visit, leading to greater regional economic activity. • Greater value from money on existing investment Cycle trails and communities develop capability and capacity to offer a wider variety of attractions and services, improve the visitor experience and broaden the potential market. • Future investment into the cycle trails optimises regional benefits Future investment is aligned to regional outcomes, enabling access to a broader range of funding opportunities. Decisions about trail investment are informed by how to maximise demand across the region.
People resources required
Two new roles would be created to deliver the work programme, working with stakeholders – including, but not limited to, trail managers, iwi, Te Waka, council staff, Regional Tourism Offices (RTO), and central government. These two new roles could potentially come under Te Waka instead of creating a new entity. WRCTN members will have an important role in the success of the network. Trail managers, council and RTO staff will need to be actively involved in implementing the work programme. Activity from WRCTN members will not necessarily require additional effort over and above current workloads. A key tenet of the approach is to coordinate activity better and leverage a region-wide approach.
Potential funding options
Alongside the Ngā Haerenga Enhancement and Extension and Managing Great Rides funds, possible funding options for the WRCTN, include, but are not limited to: • central government (for example the Provincial Growth Fund) • regional/local government (for example WRC’s Regional Development Fund) • WRCTN members and regional stakeholders, either as in-kind support or a cash contribution • other donations and grants. The estimated cost for the first three years if the programme is $737,000.
Further consultation is required to agree funding arrangements if the WRCTN members support the PBC as in the long term, WRCTN members will probably need to contribute at least a portion of the investment cost. In the short term, there is a potential issue with timing. Councils have adopted their 2018–2028 Long Term Plans and may have limited ability to contribute funding WRCTN over the next 1–3 years. The proposed approach is to apply to the Provincial Growth Fund and regional funders for a significant proportion of the funding
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requirements through to 2020/2021 (approximately $0.737 million in total). If successful, this will provide short-term funding and also an opportunity to engage with stakeholders about longer-term funding opportunities.
It has been recommended in the business case that support for the implementation of the ‘transformational’ scenario be confirmed through the signing of a Memorandum of Understanding.
4 Significance and Engagement Assessment
This decision does not trigger the Significance and Engagement Policy Assessment Tool and therefore is not considered significant under the Significance and Engagement Policy 2014.
5 Budget Implications
There are currently no budget implications for this decision, other than staff time when attending the WRCTN meetings and follow-up after the meetings. Hauraki District Council funding of the proposed cycle network would need to be considered in the next Long Term Plan process if Council wishes to support this programme of work.
6 Recommendation
Council staff recommend, that the Economic Development Subcommittee support the ‘transformational’ scenario outlined in the Waikato Regional Cycle Trails Network Business Case, and that a report be taken to the Community Services and Development Committee seeking support in principle for the transformational scenario outlined in the Waikato Regional Cycle Trails Network.
Rebecca Jenks ECONOMIC DEVELOPMENT OFFICER
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Appendix A:
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2
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CONTENTS
EXECUTIVE SUMMARY 2 MANAGEMENT CASE 92
Introduction 16 High-level work programme 93
STRATEGIC CASE 21 Capability and capacity 95 Waikato’s cycle trails 23 Transition arrangements 101
Challenges facing the region’s cycle trails 36 FINANCIAL CASE 102 The case for establishing a cycle trail network in the Indicative cost of the transformational scenario 103 Waikato region 45 Potential funding arrangements 105
What needs to happen to achieve the network over RECOMMENDATIONS 107 time? 51
Strategic alignment 56 Appendix 1 : Workshop attendees 109
Risks, constraints and dependencies 59 Appendix 2 : Trails 110 ECONOMIC CASE 60 Appendix 3 : Current trails and proposed extensions 118 Scenario 1: BAU scenario 66 Appendix 4 : Investment objectives – What does success look like? 119 Scenario 2: Incremental scenario 69 Appendix 5 : Cost and benefit assumptions 120 Scenario 3: Transformational scenario 73 Appendix 6 : Indicative cost of the scenarios 124 Analysing the three scenarios 79 Appendix 7 : List of tables and figures 125 The preferred way forward 90
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PREFACE This report has been prepared for the Waikato Regional Cycle Trails Disclaimer Development Group by Nick Carlaw and Jason Leung-Wai from This Report has been prepared solely for the purposes stated herein and MartinJenkins (Martin, Jenkins & Associates Limited). should not be relied upon for any other purpose. To the fullest extent MartinJenkins advises clients in the public, private and not-for-profit sectors, permitted by law, we accept no duty of care to any third party in connection providing services in these areas: with the provision of this Report. We accept no liability of any kind to any Public policy third party and disclaim all responsibility for the consequences of any third party acting or refraining to act in reliance on the Report. Evaluation and research We have not been required, or sought, to independently verify the accuracy Strategy and investment of information provided to us. Accordingly, we express no opinion on the Performance improvement and monitoring reliability, accuracy, or completeness of the information provided to us and upon which we have relied. Organisational improvement The statements and opinions expressed herein have been made in good Employment relations faith, and on the basis that all information relied upon is true and accurate in Economic development all material respects, and not misleading by reason of omission or otherwise. We reserve the right, but will be under no obligation, to review or amend this Financial and economic analysis. Report if any additional information, which was in existence on the date of Our aim is to provide an integrated and comprehensive response to client this Report, was not brought to our attention, or subsequently comes to light. needs – connecting our skill sets and applying fresh thinking to lift performance. MartinJenkins is a privately owned New Zealand limited liability company. We have offices in Wellington and Auckland. The company was established in 1993 and is governed by a Board made up of executive directors Kevin Jenkins, Michael Mills, Nick Davis, Allana Coulon and Richard Tait, plus independent director Hilary Poole.
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Document history Draft Strategic Case version 1, 27 April 2018: Reviewed by Rachel Cook (Waikato Regional Council) and Harvey Brookes (Waikato Means Business). Draft Strategic Case version 2, 9 May 2018: Reviewed by Waikato Cycle Trail Development Group. Draft Economic Case version 1, 30 May 2018: Economic Case reviewed by Rachel Cook (Waikato Regional Council) and Harvey Brooks (Waikato Means Business). Draft Business Case version 1, 22 June 2018: Reviewed by Rachel Cook (Waikato Regional Council), Harvey Brookes (Waikato Means Business), Diane Drummond (Hauraki Rail Trail), Glyn Wooller (Waikato River Trail) and Rebecca Jenks (Hauraki District Council). Draft Business Case version 2, 16 July 2018: Reviewed by Waikato Cycle Trail Development Group.
1
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In collaboration with a wide range of stakeholder partners, Waikato EXECUTIVE SUMMARY Regional Council and Waikato Means Business have commissioned this business case to identify how to maximise the economic development, business and employment opportunities associated with the Waikato Waikato is home to a wide range of cycling opportunities. At the top end of region’s cycle trails. the sporting scale, Cambridge has the well-regarded Avantidrome complex, as well as the Home of Cycling and the head office for Cycling The business case considers all aspects of a cycle trail, from the physical New Zealand. asset, to the involvement of local community and business, to the capability and capacity needed to deliver a great customer experience and The region boasts Four Great Rides – the Hauraki Rail Trail, the Timber attract new and returning visitors (as shown in the figure on the following Trail, Waikato River Trails and the Great Lakes Trail. Those four trails, page). together with Te Awa River Ride, are the focus of this Programme Business Case (see Figure 3). In addition, there are other excellent tourism biking routes (for example West Coast rides around Raglan and the Mount Pirongia Mountain Bike Trails), and a number of mountain bike parks with a range of trails for off- road riding. Taupō has achieved Silver Grade MTB status as a destination and, close by, Rotorua has achieved a Gold Grade.1 Cycle trail development in the Waikato has accelerated significantly in the past five years. While progress has been impressive, completion of existing trails and the development of new trails remains incremental and limited by funding and local capacity. There is no long-term plan identifying what a completed network looks like and what it would take to get to that point.
Cycle trail stakeholders in the Waikato region have been working together to understand areas in which they can collaborate, with a view to increasing the uptake on their individual trails and trails in the wider region, as well as supporting inter-regional connections.
1 Accreditation by US-based International Mountain Bicycling Association https://www.imba.com/. Rotorua and Nelson are the only two locations outside of the USA that are accredited at this level.
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What is meant by a cycle trail network? In this business case, the word “network” is used to describe how separate trails within the Waikato region operate together for the benefit of each other and the region.
Accommodation providers and cafes and restaurants offer cyclist- friendly services such as secure bike storage, repair stands and work areas, a place to wash bikes, and Local transfers to and within a laundry facilities. community for international visitors and those not driving directly to a Cycle trails destination.
Central and local RTOs Bike hire, purchase and government servicing for international and domestic visitors. Sustainability Capacity and capability Local community and Cycle trails Regional governance to set strategic direction. Identifying extensions and activities that business will achieve the greatest benefit from a regional perspective.
Signage and Sharing resources and best practice to Events to attract Package operators interpretation Infrastructure maintain and develop the trails. visitors and grow and tour operators. Amenities at trailheads to create a positive, engagement. experience, including toilets, wayfinding to trails from town centres, information about trails, and parking at trail heads. Trails can also enhance their product with bike Marketing trails and skills parks adjacent to the trail and facilities services as a package such as bike wash areas, air hoses, secure designed to maximise use. storage, and bike racks. Customer experience 3
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CHALLENGES FACING THE REGION’S CYCLE TRAILS Good things are happening but challenges to success remain.
Waikato is blessed with a wonderful heritage, people and culture, great Key challenges to success infrastructure and connectivity, and a position at the apex of the North Island’s “golden triangle”. Despite this, there are some key challenges facing the region’s cycle trails, summarised in the figure below. There is a strong desire to unlock the opportunity this brings, to grow the regional economy and realise the area’s full tourism potential. Products such as Hamilton Gardens, Hobbiton, Raglan and Waitomo Caves are helping to shape the perception of Waikato as a high-profile tourism Achieving the desired levels of trail quality and grade
destination. consistency Committed and passionate investors and partners are involved with Waikato cycling. All of the partners are active in their areas of interest and
there is the potential to harness their considerable skills and resources to Maintaining sufficient stakeholder support to operate and benefit Waikato cycle tourism. enhance the trails Stakeholders share a strong understanding of the benefits the cycle trails bring to the region – including economic, environmental, social and health opportunities. Achieving a sustainable financial model
Sufficient service providers and services to meet customer demand and help grow trail use
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THE CASE FOR ESTABLISHING A CYCLE TRAIL NETWORK IN THE WAIKATO REGION
There is significant support for developing the region’s cycle trails – at national, regional and local levels. The benefits of a regional approach are summarised in the figure on the right.
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WHAT IS REQUIRED TO ACHIEVE THE NETWORK
OVER TIME?
Enhance and extend Tranche 1: The business case identifies three tranches of activity to achieve benefits cycle trails up to the 30-year horizon (see the figure at right), and examines different
options to give effect to the tranches – including what the key activities are in each tranche and how they are best phased and sequenced. The business case then identifies what an optimal programme of activity would Develop Grow service look like over 30 years (that is, the preferred approach). the Waikato Tranche 2: cycle trail providers network
The figure on the following page summarises the key objectives of each tranche and the impacts and benefits that are expected.
Develop capability Tranche 3: and capacity
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Impacts and benefits for New Zealand from investing in the WRCTN
INTERVENTIONS BENEFITS
Achieve desired grade consistency and quality to deliver a safe and consistent More international, Tranche 1: experience out-of-region and Creating jobs through the design, Enhance and extend trails Agree a region-wide vision for local visitors stay construction and maintenance of the longer and spend Waikato’s cycle trails, including region’s cycle network physical network connections more during their Identify business potential in local visit communities Promote opportunities to invest in local cycle trail services Help service providers get established and support them to deliver to an Creating a high-quality tourism asset agreed customer experience Cycle trails and Enhancing New Zealand’s Tranche 2: Grow local community support and communities competitiveness as a tourism deliver greater Grow service providers engagement destination Deepen understanding of customer value for money experience and forecast market on existing Providing ongoing employment and demand investment economic development opportunities for Establish a region-wide approach to regional economies governance Enable effective stakeholder relationships Support quality marketing and product Future Tranche 3: development investment into Leverage opportunities to achieve Develop capability and the cycle trails Delivering other benefits: recreational, capacity sustainable funding optimises Leverage opportunities to achieve health, cultural and environmental regional benefits sustainable trail governance and operations
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Trail managers, the regional council and local councils, Regional Tourism THE DIFFERENT Offices (RTOs) and key government agencies have worked together closely to determine the practical implications of each scenario for both the SCENARIOS CONSIDERED visitors riding the cycle trails and the community, and to analyse how the network would benefit local communities and the Waikato region. IN THE BUSINESS CASE This assessment, along with a cost benefit analysis, is used to consider The business case identifies and assesses three alternative scenarios – the relative merits of each scenario and identify which scenario is the “BAU”, “incremental” and “transformational” – to leverage cycle trail assets preferred investment approach. and grow economic activity in local communities. The three scenarios have been developed in close consultation with the WRCTN using an iterative BAU INCREMENTAL TRANSFORMATIONAL process. SCENARIO SCENARIO SCENARIO
The three scenarios differ in the type and level of benefits they deliver and Ability to deliver a they require a different mix of investment and resources in order to be comparative advantage Low Low – moderate Moderate – high successful (summarised in the table on the right). for Waikato Importantly, the scenarios also take into account future investment into the Increased visitors, length of stay and Low Moderate High cycle trails, as part of considering the level of output achieved from a set average daily spend level of investment under each scenario. Regional economic Low Low – moderate High The three scenarios should be seen as being on a continuum, with the development benefits “BAU” scenario at one end and the “transformational” scenario at the other. The “incremental” scenario falls between the two. Financial cost of Low Low – moderate Moderate scenario The “BAU” scenario, which delivers the least amount of benefits, represents the status quo option – essentially a continuation of the existing Scenario constraints WRCTN. Fewer opportunities would be taken, and at a slower pace. Cycle (local funding share and High Moderate Low capacity and capability) trails would continue to operate relatively independently of each other, and visitor growth and economic activity in local communities would be lower than what it otherwise could be. By comparison, the “transformational” scenario delivers greater benefits, with more emphasis on engaging with and influencing stakeholders, and the nature of the activity across the three tranches is more complex.
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THE PREFERRED WAY “Transformational” scenario as the preferred way forward
FORWARD The “transformational” scenario is the preferred way forward. Under this Analysing the scenarios scenario, value for money of existing and future investment is optimised through developing capability and capacity – meaning that resources and We have analysed the three scenarios to provide a detailed comparison of expertise are freed up to allow a focus on delivering a great cycle trail the benefits they are expected to achieve and the level of investment experience and growing economic activity in local communities. required. This scenario costs more. However, it is fully fundable and achieves the The analysis is based on the Cost Benefit Analysis (CBA) model for highest benefit cost ratio (BCR), 1.5. assessing Great Rides submissions for NZCT funding, adapted for this business case. Cycle trails increase economic activity in local The CBA model quantifies the monetary value of the benefits associated communities with visitors to the cycle trails coming in greater numbers, spending more Under the transformational scenario, WRCTN works closely with councils, per visit, and staying for longer. The model distinguishes between different RTOs and Waikato REDA to promote business opportunities in local types of visitors (international, out-of-region and local) and whether they communities and support new businesses to be sustainable in the long visit the cycle trails for a single day or over multiple days. term. The benefits are expressed in terms of GDP from visitor spend in the There is a drive to attract “big ticket” investment into the smaller towns Waikato, the health benefits of more people using the trails, and consumer (such as new accommodation) to achieve higher visitor spend and, over surplus. The model compares the monetary value of the benefits with the time, attract more non-cycling visitors. cost of the scenarios. The cost includes the operating expenditure for There is a proactive focus on schools and communities to leverage the delivering the scenario work programme, and the capital and operating cycle trails for education purposes and to establish community events, cost of enhancing and expanding the cycle trails. which in turn attracts visitors and increases demand. Consistent with the approach for the NZCT funding submissions, analysis The physical network is expanded in order to maximise regional economic is over a 10-year timeframe. development, particularly in smaller communities where the cycle trails will have a significant impact on economic activity.
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Cycle trails are good for our people and our environment Under the transformational scenario, more local visitors to the trails and a greater focus on trails sharing best practice around biodiversity and sustainability achieve better outcomes for the environment. Visitors are able to learn about Waikato’s history and experience its natural beauty and cultural heritage.
Summary of findings
The figure below compares the cumulative NPV and the benefit cost ratio for each scenario. The “transformational” scenario returns the largest NPV ($6.8 million) with the earliest break-even (2026).
Compared to all other scenarios, the “transformational” scenario achieves: more international and out of region-visitors, staying longer and spending more the greatest amount of sustainable economic activity and job creation in local communities some large investment in local communities including new accommodation and upgrades to key community infrastructure, significantly increasing average daily spend the greatest level of development in cycle trail assets, with existing assets maintained to a higher level of quality. The table on the following page summaries the benefits, focusing on the regional impact.
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Key benefits of the transformational scenario
VISITORS BREAKDOWN OF QUANTIFIED BENEFITS (OVER 10 YEARS) ADDITIONAL JOBS IN THE REGION
By Year 10: Average daily spend increases from $215 to $330 Approximately 50% of multiday visitors stay for one night, 35% for two nights and the remaining proportion (15%) stay for three nights.
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The “transformational” scenario requires two WRCTN personnel (a IMPLEMENTATION AND Programme Lead and a Senior Advisor). Most of this team’s effort will be directed towards activity in Tranche 3 (Develop capability and capacity). NEXT STEPS As well as the two WRCTN personnel, WRCTN members will have an important role to play in the success of the network. Trail managers, council and RTO staff will need to be actively involved in implementing of Work programme the work programme. It is important to note that this activity will not necessarily require additional effort over and above current workloads. A An indicative work programme has been developed for the preferred key tenet of the WRCTN is to co-ordinate existing activity better and scenario over 30 years. A small amount of focused activity occurs in leverage a region-wide approach. Year 1, as the WRCTN is set up. There is a significant amount of effort required in Years 2–5 to set up systems and processes for many of the initiatives. After this time, the majority of initiatives become “BAU” activity Indicative cost and funding arrangements and the level of effort is expected to smooth out. In some cases, initiatives require regular bursts of effort (for example, periods of heightened marketing activity each year). Current scenario The current arrangements are estimated to cost approximately $50,000 per year – consisting mainly of personnel time, with some cost associated Capability and capacity with WRCTN workshops and progressing initiatives in between the The success of the WRCTN will depend on the capability and capacity of meetings. Most of this cost is funded by Waikato Regional Council with in- its personnel. They will need to deliver a large programme, working “hand- kind support. in-glove” with a diverse range of stakeholders – including, but not limited to, trail managers, iwi, Waikato REDA, council staff, RTOs, and central Cost of the “transformational” scenario government. The total cost for the preferred scenario over five years from 2019/20 to A cost model has been developed to estimate the cost of the WRCTN for 2023/24 is approximately $1.580 million. the three scenarios. The model uses a “bottom-up” approach to estimate The following figure shows that annual expenditure increases from $0.100 the amount of effort required to undertake each activity across the three million in Year 1 (2019/20) to $0.430 million in Year 5 (2023/24), which is tranches. In aggregate this and provides an estimate of the number of FTE considered to be a steady state year. personnel required.
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term, WRCTN members will need to contribute funding to at least a portion of the investment cost. In the short term, there is a potential issue with timing. Councils are close to adopting their 2018–2028 LTPs and may have limited ability to contribute funding to the WRTCN over the next 1–3 years. The proposed approach, therefore, is to make an application to the Provincial Growth Fund and regional funders for a significant proportion of the funding requirements through to 2020/2021 (approximately $0.737 million in total). If successful, this will provide short-term funding and also an opportunity to engage with stakeholders about longer-term funding opportunities.
Transition arrangements
The business case proposes a small transition team to undertake the bulk Potential funding arrangements of the work necessary to establish the WRCTN, with oversight provided by In addition to the Ngā Haerenga Enhancement and Extension Fund, there a transition board. The transition arrangements would be in place until the are a range of possible funding options for the WRCTN. These could WRCTN is operational (approximately 6–8 months). include, but are not limited to: The transition group would work closely with stakeholders to consider a funds administered by central government (for example the Provincial range of issues, including (but not limited to): Growth Fund) a transition plan that sets out the detailed approach for funds administered by local government (for example WRC’s operationalising the “transformational” scenario Regional Development Fund) the transition budget and funding contributions in the short term funding contributions from WRCTN members and regional whether WRCTN is established as an independent entity, or as part of stakeholders, either as in-kind support or a cash contribution an existing entity (such as Waikato REDA) other donations and grants. employment arrangements and location of employment of the WRCTN personnel Further consultation required to agree funding arrangements provision of administrative support services. If WRCTN members support the business case, an early action will be to agree on the necessary funding arrangements. It is likely that, in the long
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BUSINESS CASE RECOMMENDATIONS
It is recommended that:
1 WRCTN members assess the business case and determine whether they support the implementation of the “transformational” scenario. 2 If there is unanimous agreement by WRCTN members to proceed, members sign a memorandum of understanding that: sets the “go–live” date for the “transformational” scenario identifies the members of the transition governance and delivery team confirms agreement in principle to the proposed funding approach outlined in the Finance Case. 3 The transition group is convened and a project manager appointed. 4 WRCTN members agree a transition plan that sets out the detailed approach for operationalising the “transformational” scenario. Among other things, the plan includes further analysis and decision making on: governance, including identifying the individual chair whether WRCTN is established as an independent entity, or is part of an existing entity (such as Waikato REDA) employment arrangements, including the location of WRCTN personnel provision of administrative support services.
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5 WRCTN members agree a funding plan that identifies: the detailed transition and ongoing budgets how much funding will be requested from government and regional funders the funding contribution from WRCTN members (including in-kind and cash contributions).
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INTRODUCTION
Cycle trail development in the Waikato has accelerated significantly in the Scope of the business case past five years. While progress has been impressive, completion of existing trails and the development of new trails remains incremental and The Waikato Regional Cycle Trails Development Group carefully limited by funding and local capacity. There is no long-term plan identifying considered the scope of this business case. Initial discussion focused on what a completed network looks like and what it would take to get to that the connection of the physical cycle trail network, but this was recognised point. as being too narrow. Cycle trail stakeholders in the Waikato region have been working together A key driver for developing the business case was to grow economic to understand areas in which they can collaborate, with a view to development – something that could not be achieved by just extending the increasing the uptake on their individual trails and trails in the greater region’s cycle trails. The business case needed to be broader, examining region, as well as supporting inter-regional connections. how the cycle trails and local communities could work together to benefit each other and the region. What this business case seeks to do To this end, the scope includes the following: In collaboration with a wide range of stakeholder partners, Waikato Develop a compelling investment case for growing economic and Regional Council and Waikato Means Business have commissioned a community activity by: Programme Business Case to identify how to maximise the economic - leveraging existing trail assets development, business and employment opportunities that the Waikato region’s cycle trails can bring. - establishing a Waikato Region Cycle Trail Network (WRCTN) The business case will be used by individual trail operators and the - identifying the roles of key stakeholders in the network. network as a whole to: Identify indicative cost implications and possible funding understand the relative priority, timing and sequence of economic arrangements. development opportunities associated with cycle trails Set out a high-level implementation plan for establishing the WRCTN attract investors to the region’s cycle trails for the purposes of and the arrangements necessary to successfully achieve the completing, enhancing and connecting trails and for local economic proposed investment. development activity. The business case covers an investment timeframe of 30 years. However, the focus of the analysis is over a shorter period – the first 10 years.
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For the purposes of this business case the network consists of the following major cycle trails: the Hauraki Rail Trail, the Great Lake Trail, Te Awa River Ride, Waikato River Trails and the Timber Trail – located in the central North Island and Waikato region (see Figure 1).
Figure 1: Geographic scope
Out of scope Decisions on further trail development will not be made as a part of this business case – those decisions will be subject to their own investment proposals and decision-making processes. However, while those investment decisions are out of scope, the business case does take into account the level of output achieved from future investment in the trails. This is expected to help funders and decision makers to make future investment decisions as part of their own funding allocation processes.
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Our approach to developing the Programme Business Case
The business case is based on stakeholder input provided at two workshops (Appendix 1 lists the participants). This input has identified: gaps in existing arrangements, to inform the “case for change” possible options and the criteria for assessing the options the preferred approach for the WRCTN and how it should be governed and operated. A Microsoft Excel model has been developed to estimate the cost for both the current situation and the proposed WRCTN. Cost benefit analysis is based on the agreed methodology developed by MBIE for undertaking a benefits evaluation of the cycle trail network. Stakeholders have reviewed the draft business case and provided feedback on it. The figure on the right outlines the structure of the business case.
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The terminology we have used For ease of understanding, the following terminology is commonly used in the business case.
Waikato Region Cycle Trail Network or WRCTN comprises representatives from the Hauraki Rail Trail, Waikato River Trails, the Great Lake Trail, Te Awa River Ride and the Timber Trail, and from central and local government.
Trails refer to some or all of the trails in-scope of this business case – the Hauraki Rail Trail (HRT), Waikato River Trails (WRT), the Great Lake Trail (GLT), Te Awa River Ride and the Timber Trail (TT). Trail section refers to the individual rides that, together, make up a trail. Trail infrastructure refers to forging and surfacing on trails, as well as signage, toilets, parking, and electronic counters.
Services refers to amenities provided by businesses such as bike rentals, food, coffee, shuttles, campsites and accommodation.
Services providers or Providers refer to the businesses providing the services in local communities in the Waikato region. Trail operations refers to trail maintenance and other core activities required to operate the trails, including financial record-keeping, stakeholder engagement, governance, asset management, marketing, and safety.
In-kind contributions refers to personnel or assets provided by stakeholders in place of a direct cash contribution.
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What is meant by a cycle trail network? In this business case, the word “network” is used to describe how separate trails within the Waikato region operate together for the benefit of each other and the region.
Accommodation providers and cafes and restaurants offer cyclist- friendly services such as secure bike storage, repair stands and work areas, a place to wash bikes, and Local transfers to and within a laundry facilities. community for international visitors and those not driving directly to a Cycle trails destination.
Central and local RTOs Bike hire, purchase and government servicing for international and domestic visitors. Sustainability Capacity and capability Local community and Cycle trails Regional governance to set strategic direction. Identifying extensions and activities that business will achieve the greatest benefit from a regional perspective.
Signage & Sharing resources and best practice to Events to attract Package operators interpretation Infrastructure maintain and develop the trails. visitors and grow and tour operators. Amenities at trailheads to create a positive, engagement. experience, including toilets, wayfinding to trails from town centres, information about trails and parking at trail heads. Trails can also enhance their product with bike Marketing trails and skills parks adjacent to the trail and facilities services as a package such as bike wash areas, air hoses, secure designed to maximise use. storage and bike racks.
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STRATEGIC CASE
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Figure 2: New Zealand’s Great Rides New Zealand cycle trails
The Great Rides of the New Zealand Cycle Trail network are premier and predominately off-road trails that showcase the best of New Zealand – our landscapes, environment, culture and heritage. They are located throughout the country, from Northland to Southland. Today, more than a million people per year use the 22 Great Rides of Ngā Haerenga, the New Zealand Cycle Trail. Government and local communities co-fund the Great Rides, providing a healthy and enjoyable way for Kiwis and international visitors to see the country. Complementing the Great Rides, Heartland Rides provide on-road cycle touring routes linking the Great Rides, urban centres, transport hubs and other key tourist attractions. They encourage cyclists onto scenic backcountry roads where they can experience heartland New Zealand. More recently, the New Zealand Transport Agency has provided significant co-funding through the Urban Cycleway Programme to help construct a number of on-and-off-road cycle ways that make it safer and easier for cyclists to navigate through our urban centres.
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WAIKATO’S CYCLE TRAILS
Waikato is home to a wide range of cycling opportunities. Figure 3 Current trails in the Waikato region At the top end of the sporting scale, Cambridge has the well-regarded Avantidrome complex, as well as the Home of Cycling and the head office for Cycling New Zealand. The region has several cycling champions and sports ambassadors. The technology developed around cycling at the Avantidrome is internationally acclaimed and is of considerable interest to sporting nations. The region boasts Four Great Rides – the Hauraki Rail Trail, the Timber Trail, Waikato River Trails and the Great Lakes Trail, which, together with Te Awa River Ride, are the focus of this business case (see Figure 3). In total these five rides cover 19 sections and 470 kms of cycle trails. The rides are a mix of difficulty. Approximately half of the cycle trails (60%) are beginner level (mainly grade 1, with a small proportion of grade 2). The remainder of the trails are grade 3, with patches of grade 4 on the Waikato River Trails.2 In addition, there are other excellent tourism biking routes (for example West Coast rides around Raglan and the Mount Pirongia Mountain Bike Trails) and a number of mountain bike parks with a range of trails for off-road riding. Taupō has achieved Silver Grade MTB status as a destination and, close by, Rotorua has achieved a Gold Grade.3 An overview of each cycle trail follows, with further detail provided in Appendix 2.
2 Grade 1: Fairly flat, wide, smooth track or gravel road; Grade 2: Mostly flat with some gentle climbs on Grade 5: Technically challenging – giant climbs, narrow track and numerous hazards including smooth track with easily avoidable obstacles such as rocks and potholes; Grade 3: Steep slopes dangerous drop-offs, sharp corners and difficult obstacles. and/or avoidable obstacles possibly on narrow track and/or with poor traction; Grade 4: A mixture of 3 Accreditation by the US-based International Mountain Bicycling Association https://www.imba.com/ . long, steep climbs, narrow track, poor traction and obstacles that are difficult to avoid or jump over; Rotorua and Nelson are the only two locations outside of the USA that are accredited at this level.
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Hauraki Rail Trail
Strengths Natural beauty (for example, Karangahake Gorge, wetland of international importance under the Ramsar Convention, Kaimai Range skyline), traversing rail corridor and near-by range of train-based activity. Sufficient funding to maintain existing trail and infrastructure. Close proximity (1.5–2 hours’ drive) to Auckland. Incomplete product to make the ride a great experience – in terms of Weakness essential trail infrastructure (such as interpretation, signage, shelter and planting). Lack of safe and secure car parking at trail entrances.
Opportunities Focus on completing the trail product, including enhancing segments of the trail (for example, theming and story-telling) and developing trail nodes to link town centres, and enhancing and developing the trail heads. Explore feasibility of new high-quality accommodation across network (3-5 star quality with at least three rooms). Work with local business and the community to extend service offerings to increase the visitor experience (for example, ancillary recreational products like kayaking, walking, fishing, zip line), and existing attractions (Matatoki Cheese Barn and Hobbiton). Packaging cycling and ancillary activities, and develop products for international audiences (HRT makes the 5th highest overall economic contribution out of 22 Great Rides, but is 10th highest for international visitor contribution). Work with councils to reduce red tape and make it easier for business to realise potential. Work with the community to grow existing and develop new cycling events. Explore the feasibility of community-led car parking – for example, use of mobile phone apps to identify private properties that offer (paid) car parking. Lots of options for future trail extensions and nodes. Need to understand benefits (and dis-benefits) at local and regional level to prioritise trail extension options. Possible options include extending existing trail nodes, and inter-regional connections (for example, adding Auckland to the Kopu to Kaiaua ride).
Threats Only one dedicated transport shuttle provider. Many customers only do parts of the trail at a time, making it hard to sustain the transport business long- term.
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Te Awa River Ride
Strengths Paved, versatile trail, easy to ride. 50% of users are walkers/ runners.
Urban connections and access to Avantidrome makes the trail popular for commuting purposes Full paved surface sets the ride apart from other trails. Accessible to metro population, including Auckland. Café established in Karapiro, strengthening the appeal of the destination point.
Weakness Ngaruawahia (as a destination point) is under-developed, currently with limited food and accommodation options, and a poor return transport link. Interpretation and signage needs completing. Limited focus to maintain and develop the trail – only 0.5 management FTE. Opportunities Low ongoing maintenance effort and cost, limited to weeding. 30km track extension from Ngaruawahia to Karapiro. Promote the track as comparable to a Great Ride, with fantastic scenery. Interpretation to highlight the Waikato River and surrounding environment. Develop wharf infrastructure in Ngaruawahia to enable a return transport link via boat – contributing to the experience. Support local businesses to embrace the opportunities of being a destination point (food and accommodation, and leveraging other activities in the area, including Ngaruawahia). If the trail is used as a two-day ride, lots of accommodation and food options in Hamilton and Cambridge. Opportunity to leverage the region’s other attractions as part of the overall experience. Opportunity to use the trail as an arterial link for connecting other cycle trails in the region.
Threats Not a Great Ride, creates a perception that the trail is not iconic enough.
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Waikato River Trails
Strengths Close to Auckland, Hamilton and Cambridge. Good base of service providers ready to service more customers as the trail experience is enhanced (for example, bike hire providers currently operating below capacity). Situated around New Zealand’s largest river. Mix of landscapes with hydro lakes, dams, volcanic landscape, and forest and farmland. A lot of Māori and European history. Can ride the trail year-round.
Weakness Inconsistent gradient. Currently a mix of grade 2-3, 4 and 5 with one long set of steps and two on-road sections (2 km and 15 km lengths). Some trail sections are disconnected from the Waikato River, and inferior width and surfacing in some areas. Need for accommodation in Arapuni, and middle of the trail near Waipapa dam and Waotu.
Opportunities Enhancing sections of the trail, with particular focus on activating the Waikato River. Enhancing the surrounding riparian area with the trail acting as custodians. More consistent gradient to attract more families, leisure cyclists and older riders. Removing steps and rerouting the trail in some sections. Developing trail infrastructure, improving the experience with interpretation, signage and facilities. Work with local businesses and the community to extend service offerings, including development of further accommodation options. Key opportunity around second-night accommodation, utilising old dam village or nearby farmland. Also bike shop/hire/services near start of trail. Connecting to other trails in the long term, particularly in the north where there is significant population from Hamilton and Cambridge.
Threats Developing some trail sections will require access to land, thorough scoping of the new trail, and engineering advice. Sufficient funding to maintain and develop the trail and infrastructure. Planned extension to Cambridge expressway may not go ahead in the short to medium term, potentially pushing out a development opportunity to extend the trail.
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Timber Trail
Strengths Tour Aotearoa annual cycle event rated Timber Trail as the 2nd best trail at the event. Located within 4-5 hours drive of most of North Island. Remote, yet a relatively easy ride through stunning forests in a unique natural environment, with fascinating history and heritage. Lodge options at halfway point (Piropiro Flats and Black Fern Lodge). Riders can have their bags transported and meals supplied. Strong council and DOC buy-in (funding and support). Iwi landowners, engaged as tourism operators, providing bookable cultural experiences.
Weakness Trail formation means there is high seasonal variability in the track surface, making some trail sections very difficult or unrideable in wet conditions. Pumice was assumed to be suitable foundation, without need for surfacing, but this has not proved to be the case in steeper areas. Some safety concerns about inexperienced riders getting caught out above the bush line because it takes longer to traverse this section because of poor track conditions on the Mt Pureora section. Cyclists are finishing the trail at the un-serviced Bennett Road car park approximately 2km from Ongarue, which is stalling further development of amenities in the Ongarue township. Limited accommodation and food options at Pureora and Ongarue.
Opportunities Link trail to Ongarue to bring tourism to the village. Create “hubs” with a clear beginning with interpretation panels, suitable facilities for all users at Piropiro (halfway), and an end to the trail at the Ongarue Hall. Timber Trail has been shortlisted as a Great Walk, decision to be made at the end of 2018. If successful, will result in significant infrastructure investment over 3 years including additional hut accommodation (3-4 huts). Upgrade trail construction and develop a consistent grade 2/3 with a good year-round surface. Good partnerships with DOC, iwi and hapu. Can involve more locals and visitors in conservation projects and other biodiversity work in Pureora Forest Park. Connecting to other trails in the long term, for example towards Taupō and the Great Lake Cycle Trails or north to the Waikato River.
Threats Sufficient funding to maintain and develop trail and infrastructure.
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Great Lakes Trail
Strengths Taupō is experiencing a culture shift as it becomes a bike destination. Kids Bike Taupō programme visits schools to teach bike skills. Taupō is an existing tourist hub with accommodation, food, bike shops and hire facilities, and a range of activities including bungee jumping, parachuting, boating and fishing. Local airport is well serviced and offers good access to the region. Accommodation operators are starting to offer packages with cycle rental, trail pickups and drop offs, which often sell out. Local organisations work together well for cycling, now focusing on local people cycling. Pumice track allowing all-winter riding. Established volunteer structure helps to reduce the trail build and maintenance cost.
Weakness Management are volunteers (not paid staff), constraining the amount of time and effort available to develop the trail and lift community and business engagement.
Opportunities Continue to develop the service offering – in particular, helping businesses identify opportunities to leverage the cycle trail, to provide cycle-related services and/ or complementary activities. Other trails can leverage Bike Taupō’s significant customer base (220,000–250,000 users per year). Expansion of Kinloch ride.
Threats Insufficient funding to maintain and develop the trail and infrastructure Future expansion and extensions fail to properly consider and invest in trail infrastructure and services, alongside the trail itself.
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The third group are sports cyclists who use and train at the Avantidrome, Who uses the cycle trails? and it includes those who want to learn about the science and technology behind successful cyclists and cycling training. The global market for bicycles is anticipated to expand by 38% from 2016 to 2024. Waikato cycle trails: Different trails, different In New Zealand, cycling enjoys high participation rates, with 25% of adults customers participating in sport and recreation activities involving cycling.4 A recent customer survey of Waikato’s cycle trails6 provides interesting insights – although respondents were predominately domestic users from Cycling is an activity that people like to incorporate into their trips. Since the Waikato and Auckland and Bay of Plenty regions (only 13 out of a total 2015 there has been a 19% increase in international visitors participating in of 463 respondents were from overseas).7 cycling, and an increase in domestic visitor participation of 48%.5 There was a relatively even split between male and female users, with the An overview of cycling in the Waikato majority (90%) identifying as New Zealand European. Within the Waikato, there are three main markets for cycling activities. Users were older (the most common age bracket was 40–49) and had a Waikato residents – particularly those from Hamilton and Cambridge – seek significantly higher income ($100,000–$150,000 per year) compared to the good cycle paths and safe roads to commute to and from school and work, national average. and for recreation. The greatest proportion of trail users identified as being intermediate-level Domestic and international visitors seek one of the Great Rides or riders (50%). While 25% said they were advanced riders, only 9% of those connecting and country rides (for example, Raglan to Kawhia and return, or surveyed preferred advanced grades. Raglan to Nikau Caves and return). The national touring route is gaining in The survey reported that the majority of respondents preferred shorter rides popularity, heading down the HRT and onto the WRT and TT. (1–4 hours), and this cohort also preferred easier grades. Recent feedback Australian cyclists are a significant part of the international visitor market, from cycle trail managers suggest the face of cycling is changing, with with good numbers already travelling to popular New Zealand cycling e-bikes increasing in popularity, attracting new people to cycling, and destinations, including the central North Island and Central Otago, to ride opening up the potential for visitors to explore longer and faster. cycle ways and mountain bike trails.
4 https://sportnz.org.nz/assets/Uploads/attachments/managing-sport/research/Sport-and-Active- 7 The survey sampling method was not “on-site” and is not likely to be representative of all trail users. Recreation-in-the-lives-of-New-Zealand-Adults.pdf. Accessed May 2018. While there is information suggesting international visitors travel to popular New Zealand cycling 5 https://www.nzcycletrail.com/wp-content/uploads/2017/09/NZCT-Insights-Infographic-August-2017.pdf. destinations to ride cycle ways and mountain bike trails, this data is not available for individual Waikato Accessed May 2018. trails. 6 Waikato Cycle Trails Survey Summary, October 2016.
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other activities play a key role in the overall experience. Survey results and There appear to be broadly two groups – those who trail managers emphasise the value customers place on socialising with friends and family while riding – often the cycle trails are a vehicle for the want fast unimpeded rides, and those who would like social experience. other activities, to walk, take dogs, families, and a A range of other non-cycling activities often form part of the wider cycle trail gentler pace.8 experience. This is particularly the case for gentler trails, which attract an older customer group. Customers engage in, or are very interested in, watching wild life, bathing in hot pools, shopping, hiking, and beach visits in The most common group size was two adults, although a significant addition to cycling. proportion of groups included a child under 13 or a teenager. There are also other activities with low levels of participation, but a high level Consistent with the majority of trail users living nearby, relatively few chose of interest in the activity. This suggests possible leverage opportunities for to stay overnight. The exception was the Timber Trail, where over half of the the future. These activities include kayaking, camping, boating and fishing, visitors (54%) stayed at least one night.9 and attending a festival or event. The survey confirmed the trails were not just used for cycling, with 18% of respondents using the trails for walking or running – although this is What customers want to change substantially below the average across all Great Rides (where walkers make The highest priority for riders to improve the cycle trails are fewer on-road up an estimated 30% of total users).10 sections. The improvements most associated with an expectation of increased cycling are “reduced trail difficulty” and “better connections with How customers hear about the trails urban areas”.12 The vast majority of cycle trail users heard about the trails from friends, Trails would also benefit from improved services such as toilets and water family or colleagues, as well as trail websites. Social media, newspapers or stops, as well as improvements to trail conditions, and directions and magazines, information centres, and travel agents also provided sources of signage. Food and beverage services were also strongly desired. information across the trails.11 41% of those surveyed said they would do more cycling overall if selected What other drawcards bring customers to the cycle trails improvements were made, and 8% said they would switch from another region. A high proportion of visitors to the cycle trails cite the trail as their primary reason for the trip (80% according to the Waikato Cycle Survey) – however,
8 Waikato Cycle Trails Survey Summary, October 2016. 11 Waikato Cycle Trails Survey Summary, October 2016. 9 Waikato Cycle Trails Survey Summary, October 2016. 12 Waikato Cycle Trails Survey Summary, October 2016. 10 MBIE: The New Zealand Cycle Trails: Some Benefits in Relation to Costs; May 2016.
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The survey also sought recommendations for future connections: respondents preferred a link between Hamilton and Cambridge, and completely connecting Te Awa to the Waikato River Trails. Other feedback received by trail managers reinforces the social aspects of cycling, with visitors valuing and seeking trails with good food and beverages, and trails that cater to the experience level of the weakest member of the group. This feedback starts to inform a hierarchy of needs for future trail development – one possible example is shown in the figure below.
Interpretation
Informational signage
Connection with communities
Food and beverage
Directional signage
Safe parking
Consistent grade
Safe trails
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Case study: The components of a successful cycle trail network
Canada has long led the way in the development of sustainable cycle trails. A lot of research focuses on their success stories, identifying the components needed to do well – interestingly much of this research was undertaken before cycle trails in New Zealand began to take off. The diagram on the right is a framework for developing cycle tourism in a community. It is a useful way to conceptualise the type of services and activities that need to be wrapped around a trail in order to drive an increase in international, out-of-region and local users – and to generate economic activity. The focus of this business case is to identify what is needed at a regional level to make this happen for Waikato, in terms of the trail asset, governance and operations, and to engage the community and businesses.
In the beginning we all focused on the trail and totally underestimated the significance of
trail infrastructure and the need for the Reproduced from: Mountain Bike Tourism and Community Development in British Columbia: Critical Success Factors for community and businesses to buy into our the Future. May 2011 vision. We now know this is as important as the trail if we want to be successful in the long term – Waikato trail manager
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The table highlights instances where regional or national stakeholders Stakeholders are critical to the provide different levels of support to individual trails, and opportunities to seek higher levels of support. The table also helps to identify stakeholders success of trails that do not currently provide support but who could be approached (for example the Waikato River Authority and the DHB). WRCTN members report strong community engagement. Enthusiastic, engaged and passionate people with a range of skills and relationships help to build, operate and fund the region’s trails. Since 2016 the WRCTN have met to identify opportunities and priorities to support each other and grow benefits to their individual trails.13 There are several other key organisations involved in cycling in the Waikato. At a transport planning level, the Waikato Regional Council’s Transport and Infrastructure Team is leading the development of the Waikato Region Cycling Programme Business Case. Table 1 lists the main stakeholders involved with the region’s cycle trails. The type of support is described in terms of: being at an early stage of the stakeholder relationship actively supporting the trails providing funding to the trails providing in-kind support to the trails.
13 WRCTN consists of representatives from the Hauraki Rail Trail, Waikato River Trails, the Great Lake regional tourism offices (Hamilton & Waikato Tourism, Destination Coromandel, Destination Great Trail, Te Awa River Ride, the Timber Trail, the Department of Conservation, partnering councils, Lake Taupō), the NZ Transport Agency, and Waikato Regional Council.
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Table 1: Key stakeholder groups
Waikato River Hauraki Rail Trail Great Lakes Timber Trails Te Awa River Ride Trails Actively supporting Actively supporting Actively supporting Early stage of Funding al in three Providing funding Providing funding relationship councils’ LTPs Local Council(s) including ongoing Actively supporting Actively supporting maintenance Provide in-kind support Early stage of Actively supporting Actively supporting Actively supporting Regional Tourism Operator relationship/ developing
Opus, Fonterra and others Actively supporting Mercury New Zealand Public Partner Actively supporting Providing funding Providing funding Actively supporting Actively supporting Actively supporting Actively supporting No relationship NZCT
Actively supporting – iwi Actively supporting Actively supporting Early stage of Consulting with iwi/ Local iwi/hapū on governance board Relationship developing relationship hapū Actively supporting
In-kind support and cash Significant public Significant public In-kind support Significant public contribution (local support support support Public service clubs, businesses and donations) Actively supporting Actively supporting Actively supporting Actively supporting Actively supporting Providing funding Providing funding from Waikato Regional Council In-kind support In-kind support In-kind support In-kind support time to time In-kind support Actively supporting Actively supporting Actively supporting Economic Development Providing funding Agency
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Waikato River Hauraki Rail Trail Great Lakes Timber Trails Te Awa River Ride Trails Actively supporting Actively supporting, Actively supporting Early stage of Actively supporting including cycle trail relationship Local business associations events Actively supporting In-kind support In-kind support Actively supporting Early stage of Actively supporting Actively supporting NZTA Providing funding relationship Providing funding Actively supporting
Actively supporting In-kind support Actively supporting Actively supporting DOC In-kind support Providing funding
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CHALLENGES FACING THE REGION’S CYCLE TRAILS
Despite this, there are some key challenges facing the region’s cycle trails. Good things are happening, but These are summarised in Figure 4 and described further in the following challenges to success remain section. Figure 4: Key challenges Waikato is blessed with a wonderful heritage, people and culture, great infrastructure and connectivity, and a position at the apex of the North Island’s “golden triangle”. Achieving the desired levels of trail quality and grade consistency There is a strong desire to unlock the opportunity this brings, to grow the regional economy and realise the area’s full tourism potential. Products such as Hamilton Gardens, Hobbiton, Raglan and Waitomo Caves are helping to shape the perception of Waikato as a high-profile tourism destination. Maintaining sufficient stakeholder support to operate and The Waikato region enjoys a strong cycling reputation, with the likes of the enhance the trails Avantidrome, the Great Rides, and mountain bike parks. Committed and passionate investors and partners are involved with Waikato cycling. All of the partners are active in their areas of interest and there is Achieving a sustainable financial model the potential to harness their considerable skills and resources to benefit Waikato cycle tourism. Stakeholders share a strong understanding of the benefits the cycle trails bring to the region – including from economic, environmental, social and Sufficient service providers and services to meet customer health opportunities. demand and help grow trail use Engagement and collaboration is flourishing across the region – for example the Waikato Cycle Trail Development Group is working to develop a network to leverage opportunities and grow trail use.
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Achieving the desired levels of trail quality and grade consistency
One of the NZCT’s objectives is to lift the Great Rides from “good to great”. A key element of this goal is to improve trail sections that are below the desired level of quality and/or are of inconsistent grade, so visitors have a safe and enjoyable experience. Table 2 summarises trail quality and consistency in terms of whether it meets customer expectations. The data is based on a survey of Waikato cycle trail customers in 2016 and input from trail managers. Some examples of key issues where investment is needed is also set out below. WRT has intermediate grade trails at the north and south and advanced grade trails in the middle sections. The advanced sections include a large set of stairs where an alternative route is currently being put in place, a 200m vertical climb at Lake Arapuni, and a number of short steep sections along the middle sections of the trail. Maintenance difficulties on the TT mean it can be harder to ride parts of the trail during winter. On HRT, a lack of investment in signage and interpretation means some customers find that stretches of grade 1 trails are lacking. Older style cattle-stops, particularly on the early trails, risk injury and damage to bikes.
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Table 2: Customer feedback on trails and infrastructure
Key:
Less than 40% of respondents rate the service as good or very good 40%–70% of respondents rate the service as good or very good More than 80% of respondents rate the service as good or very good
Waikato River Hauraki Rail Trail Great Lakes Timber Trails Te Awa River Ride Trails
Trail difficulty against expectation
Condition of trail surface
Signage and on-trail information
Toilet facilities along trail
Parts of track have Desire for round- Parts of track have Parts of track need Problems with a rough surface, trip option to avoid overhanging foliage maintenance sharing the trail and difficult cattle shuttles and slippery mud with walkers and Frequent comments about stops off-leash dogs areas for improvements Dangerous large gravel Some track is narrow and lacks visibility
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Maintaining sufficient stakeholder support to operate and enhance the trails
Stakeholders play a critical role in the success of the trails. They provide funding and land access, and are integral to the smooth governance and running of trail operations. Significant progress has been made by trails to develop robust, strategic relationships – for example HRT is viewed as a shared asset by its three council stakeholders, with stakeholders sharing a common understanding about the benefits the trail delivers. Notwithstanding this, it is a constant challenge for trails to meet their resourcing needs, often in the context of constrained financial circumstances. Significant numbers of volunteers are needed to meet operational requirements, including maintenance and enhancement and extension activities. Specialised capability is needed on both an ongoing and ad-hoc basis – for example, governance skills to govern the cycle trust effectively, through to land negotiation and business case preparation to seek funds for trail investment. Some councils, particularly the smaller ones, have limited capacity to resource cycle trail-related work.
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Achieving a sustainable funding model
Cycle trails need to be able to fund the ongoing maintenance costs and depreciation of the existing trail network, and plan for the additional operating costs that will come with an expanded network in the future.
Trails are struggling to unlock central government funding While there is significant local commitment from councils, funders, and land owners, access to funding, in particular to the local funding share necessary to unlock Crown funding, is a significant challenge for most trails. Trail managers consistently identify this as a high risk, and the main impediment to unlocking central government funding and achieving financial sustainability. Some trails face greater challenges here than others – for example, those with fewer management and/ or administrative staff to chase down and win funding opportunities.
Lack of a regional approach A lack of a regional approach creates a heightened risk of missing out on potential funding opportunities. There is no long-term strategic, region-wide vision on how to leverage benefits at scale and think regionally and there is significant opportunity to attract more visitors to the region. At a local level, cycle trails often struggle to tell their compelling story to stakeholders and funders in a way that brings together trail usage data, social licence and community connection, environmental benefits, and economic development.
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Sufficient service providers provided to customers at each trail in terms of whether it meets customer expectations. The data is based on input from trail managers and a survey and services to meet customer of Waikato cycle trail customers in 2016.14 The table is annotated to show demand and help grow trail use major changes to customer experiences since the survey was undertaken. Lack of understanding about potential markets A high-quality trail system needs appropriate infrastructure and services – to The nature of the cycle trail customer and their expectations of the trail make it easy for people to safely enjoy the trails and to deliver the desired experience has a significant role in determining the demand for a particular customer experience. service – both the type and quality of service desired. The WRCTN views their individual trail success and sustainability as In some cases, a relative lack of accommodation and other services play to absolutely dependent on the success and growth of local businesses. the trail experience and is seen as a plus. The Timber Trail is a good Additional challenges to achieving this goal exist in parts of the Waikato, example of this, providing a more remote experience for visitors. with relatively low ratepayer bases and higher levels of deprivation. For other trails there may be a sufficient volume of services, but they may not meet the level of quality desired by trail customers. For example, visitors Effort has historically focused on the development of to the HRT generally demand a higher level of accommodation quality. In the physical cycle trail the case of Paeroa, there is only one such provider and this is often booked out during peak periods, forcing other trail customers into accommodation Early on in the development of the Great Rides, there was a lack of awareness among stakeholders of the importance of the role that business below the standard they would prefer – and what they are willing to pay for. and the community had in the success of the cycle trails. Effort was often focused on the construction of the physical cycle trail, with relatively little Other barriers exist to attracting business thought given to promoting and encouraging business to leverage the Existing businesses and potential investors can be discouraged by physical asset. The vision for the cycle trails needed to focus on this regulatory requirements (for example, applying for resource consent for business growth, with funding and operations lined up from Day One. plans outside of an urban area). A number of factors contribute to this, including a lack of knowledge about regulatory standards, how to apply for Customer expectations are not being met across all consent, and the decision-making process. trails Currently there is a mix of large and small service providers. Some trails are serviced well, while others are not. Table 3 summarises the level of services
14 Waikato Regional Council: Cycle trail survey preliminary results; November 2016.
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Table 3: Customer feedback on services
Key:
Less than 40% of respondents rate the service as good or very good 40%–70% of respondents rate the service as good or very good More than 80% of respondents rate the service as good or very good
Waikato River Hauraki Rail Trail Great Lakes Timber Trails Te Awa River Ride Trails
Trail website information
Bike shops and repair services available in the area
Bike hire quality
Trail guides n/a n/a n/a n/a
Transport to and from trails
Food and beverages available along the trail
Accommodation available in the area
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Key issues at an individual trail level
Table 4 summarises the key challenges facing each trail, with a particular focus on the governance, management and operations of the cycle trail. The table is based on an assessment by trail managers, and it rates challenges as either medium or high. More information about these challenges is included in Appendix 2.
Table 4: Key challenges facing individual trails
Key:
High challenge rated by trail manager Medium challenge rated by trail manager
Waikato River Hauraki Rail Trail Great Lakes Timber Trails Te Awa Trails
Achieving local funding Achieving local funding
Funding contribution contribution
Full time employees on Requires ongoing Significant maintenance Maintenance the trail management focus required over winter
Significant Strong governance Strong governance Governance improvement in recent time Improving but more Volunteering Waikato High levels of Good support but work required provide $90k of in-kind community engagement opportunity to engage Community engagement support per year more effectively with wider region Improving but more New businesses have Getting businesses to More providers would Market work required emerged, but more identify and act on enhance the overall required potential opportunities customer experience Well connected Political
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Waikato River Hauraki Rail Trail Great Lakes Timber Trails Te Awa Trails Improving but more High-quality policies and Concern inexperienced Health and Safety work required procedures riders caught above bush line
Trail in place but Negotiating land some sections in access with multiple Land Access Treaty settlement land owners processes
Resource Consent
Building Consent
Need trail start and Need for “supporting” end points to be infrastructure along Infrastructure developed the trail (such as park benches)
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THE CASE FOR ESTABLISHING A CYCLE TRAIL NETWORK IN THE WAIKATO REGION Background
There is significant support for developing the region’s cycle trails – at
national, regional and local levels (refer Strategic Alignment, page 56).
The case for developing New Zealand’s cycle trail network is well rehearsed. MBIE identifies three primary objectives of the New Zealand Cycle Trail:15 To create jobs through the design, construction and maintenance of the cycle network.
To create a high-quality tourism asset that will enhance New Zealand’s
competitiveness as a tourism destination and provide ongoing employment and economic development opportunities for regional economies. To maximise the range of complementary benefits that the cycle network provides to a wide range of New Zealanders. This includes events and recreational, health and other benefits. National research by MBIE into the economic benefits of the New Zealand Cycle Trails found that for every dollar spent on the trails, approximately $3.55 of annual benefits were generated. The estimated overall economic and social benefits for one year were valued at $49.4 million nationally while the estimated total cost was $13.9 million.16 Figure 5 sets out the intervention logic for the great rides developed by MBIE.
15 http://www.mbie.govt.nz/info-services/sectors-industries/tourism/nga-haerenga-new-zealand-cycle-trail 16 Ngā Haerenga NZ Cycle Trail Evaluation Report 2016, Ministry of Business Innovation and Employment.
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FigureIntervention 5: Intervention Logic for Logic the NewFramework Zealand for Cyclethe Great Trail Rides Fund DRAFT Strong and rapidly growing demand for single and Stakeholders - Trails work with MBIE, DOC, NZTA, communities, businesses, councils & iwi to deliver projects that: multi-day trail cycling by domestic and international visitors, as well as by local residents. Improve and Connect towns Attract more Add cultural Enhance or Opportunity to grow regional economic activity by extend existing and attractions visitors to and historic restore the Drivers and increasing visitor numbers, and by increasing the trails, services to create regional trails value and natural opportunities benefit a region derives from each visitor. and attractions destinations experiences environment Below-standard trails present a reputational risk to the NZ Great Rides brand. Opportunity for trails to Projects are likely to be funded by a combination of MBIE, local funding and possibly NZTA where the project meets NZTA’s funding criteria. build brand prestige and presence.
MBIE invests in projects aligned to Great Rides on the Enhance quality of trails from “Good to Great” Extend and connect existing trails priorities of: 1) Good to Great, 2) Enhancement and 3) Extension. Opportunities exist to improve the quality of existing trails to: There are opportunities to extend and connect trails to: Other stakeholders invest in projects based on • enhance the experience of trail users • link riders to townships and regional tourism destinations. achieving their own objectives (eg. NZTA – • increase visitor numbers by improving the “product” and • create a network that enables riders to spend longer on trails and congestion, heartland ride links; local government; gives them greater flexibility. Inputs and providing a consistent experience across trails community funding; businesses whose customers are • attract high-value international visitors interventions Great Ride cyclists). • improve rider safety. Investments to enhance the quality of trails include: Investments to extend trails and connect existing trails include: Projects, as outlined in a business case, are • Trail upgrades, improvements, rerouting • Extend trail to link with a local town or transport hub implemented at a local level by the Board of each • Providing amenities, services, facilities • Close existing gaps in trails trail. Generally, these are trail-related and result in • Signage, points of interest/storyboards to enhance experience improvements, extension or amenities to enhance • Safety improvements - eg barriers, bridges, rerouting to off-road • Connect trail to other trails experience. • Signage to re-route commuters. Outputs • Link trail to places of interest • Accommodation options • Environmental restoration such as riverbanks or sand dunes.
New, high-value visitors are attracted to the regions. Visitors and local residents have better experiences National benefits Regional benefits when riding trails. New Zealand and regions benefit from increased international visitor spend Regions benefit from increased international and domestic Safety risks are reduced. Short-term as: visitor spend as: outcomes Health is enhanced. • international visitor numbers increase • visitor numbers increase Traffic congestion is reduced. • international visitors stay longer and spend more. • visitors stay longer and spend more. Users have fewer accidents. New Zealand becomes renowned, both domestically Locals enjoy and use the trails more. and internationally as a first-class cycling destination, Domestic users have improved health and fitness. Social benefits derived from job creation, and sense of further increasing visitors to New Zealand, and to the Reduced congestion as commuters shift from roads to cycle trails. proactive investment in regions. regions. Social benefits derived from creating ongoing jobs eg. moving unemployed Medium- The local tourism industry responds to leverage the people into jobs in regions without an abundance of opportunities. term opportunity from growing visitor demand. outcomes Domestic visitors who would otherwise have gone overseas for cycling Ongoing jobs created in regions. holiday.
Long-term outcome Visitors and local residents enjoy exceptional, safe experiences that deliver benefits for communities and regional economies across NZ. 46
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Expected benefits for a cycle trail network in the Waikato
The concept of a regional approach has a number of advantages for the Waikato. Stakeholders have considered this “collective case” in light of their own individual circumstances, to develop a shared view of the benefits of greatest significance to them. The business case describes these benefits according to three categories, as shown in the figure on the right.
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Regional focus increases trail broaden the visitor experience and the potential market, and promote Hamilton and Waikato as an attractive place to live and work. demand and economic activity in International cycle tourists are particularly important, as they spend 1.5 local communities times as much per trip compared with the average international visitor, stay The majority of cycle trail users are seeking experiences that will provide twice as long, and visit twice as many destinations.17 lasting memories. To deliver on this – to achieve repeat business and grow There is a multiplier effect for local business investment, generating new demand – requires attention to the cycle trail product as a whole. The economic activity beyond the cycle trails – for example a new café or product is far bigger than the trail – it includes accommodation, food, cycle accommodation may be established for cycle trail visitors but also attract hire and repair, access to and from trails, and intangible factors such as non-cycle trail visitors to the community over time. availability of relevant information to plan a safe and rewarding trip. A “whole of network” approach will achieve greater ongoing employment and economic development opportunities for communities in the region. As the trail network develops and as demand increases, so will demand for Greater value for money from associated infrastructure and services. existing investment While to some extent the market will determine how these opportunities are taken, a more “whole of network” approach will mean that opportunities are Maintaining the existing asset, improving it from “good to great”, and facilitated in locations and at times that optimise the visitor experience, as expanding the network in the future requires significant investment. Cycle well as achieving wider economic benefits and other multiplier effects from trail managers have identified the need for approximately $24 million of private-sector investment. investment over the next 10 years. Service providers will have greater confidence to invest if they have a clear A regional approach will deliver better value for money on this investment, idea where the investment opportunities are in the future and have a say in with visitors enjoying better and more consistent trail experiences and a trail how the trail system operates. product designed, built and maintained to a higher standard. A regional approach can more readily provide a common, evidence-based Economies of scale can be leveraged to address common challenges and approach for potential investors to assess visitor patronage and willingness take advantage of opportunities. Specific skillsets can be utilised more to spend. widely for the benefit of all trails – for example access to experienced Promotional activities can be targeted at international visitors and out-of- negotiators to secure land access. region visitors, leveraging a wider variety of trails, attractions and services to
17 https://nzcycletrail.com/wp-content/uploads/2015/08/The-NZ-Cycleway-Market-Research-Report.pdf Accessed May 2018.
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Shared services can be delivered to cycle trails, providing richer decision Other examples emphasising the need for a regionally joined-up approach support for asset management, health and safety, and other key areas of are the WRC Regional Development Fund, which has already turned down management focus. individual applications, and NZCT. Best practice can be developed, drawing on international and local Strengthening Waikato’s cycling infrastructure, along with other great rides experiences, and shared with cycle trails and councils and community around the country, contributes to New Zealand’s tourism reputation and stakeholders to fund, develop and maintain the asset and promote economic competitiveness as a tourism destination. development. Other benefits: recreational, health, cultural and environmental Future investment in the cycle Leverage opportunities to benefit the environment trails optimises regional benefits Cycle trail development is a catalyst for engaging with the community and creating a sense of ownership around looking after the environment and contributing to biodiversity initiatives (for example, cleaning up rubbish, A joined-up approach will increase access to regional and local funding native tree planting and development of a Waikato Regional Greenways opportunities, which trails acting on their own cannot easily access. System, and restoration of missing or rare habitats in the Waikato). A common, shared vision will describe how to develop the asset in order to Increased awareness and restoration work around conservation, habitat and maximise regional benefit, with particular focus on small, rural communities. biodiversity provides a range of additional experiences for trail users and a The network approach can help to lift investor confidence by demonstrating unique brand for the Waikato cycle network. how potential investment opportunities fit into regional priorities based on a Stronger social and cultural connections common vision and set of objectives. More and better cycling and walking recreational opportunities promote There are a number of funders wanting to see a regional funding approach increased recreation activity, leading to healthier lifestyles and enhanced that delivers wider benefits, rather than individual trail bids. The criteria for well-being. Commuters using the trails enjoy safer access compared to the Tuawhenua Provincial Growth Fund requires connections to regional cycling on the road. stakeholders and frameworks, including evidence of relevant regional support and discussion with the region’s economic development governance The cycle trails provide greater access to the Waikato River and other waterways, and to heartland New Zealand, strengthening cultural tourism group.18 and opportunities for iwi and local communities.
18 http://img.scoop.co.nz/media/pdfs/1802/February_2018_PGF_Cabinet_paper_proactive_release.pdf. Accessed May 2018.
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Case study: Mountain bike tourism in British Columbia
It just happened. The mud-washed, The Mountain Bike Tourism, root-strewn forests of Vancouver’s North Shore, ridden by a rogue group produced by Destination British of adventurers, have evolved in two Columbia, was designed to guide short decades into one of the most communities interested in sought after mountain bike developing mountain bike trails and destinations in the world. promoting them to visitors. We didn’t plan for it. Nor could we Based on research on the mountain
have. But here it is. From Williams bike tourism sector in British Lake to Fernie, from Kamloops to Columbia, it provides fascinating Whistler, Squamish, Rossland, insights into the issues and Nelson, Golden, Prince George, Cumberland… the list of BC towns challenges facing the development renowned for their mountain bike of the sector – many of them similar trails grows every year. Bikers come to the issues facing Waikato’s cycle from Calgary, Washington, California, trails. the UK, and Switzerland. They come The Mountain Bike Tourism because there are few other places on describes the process to develop a the planet that offer such an incredible cycle trail (see the diagram on the combination of trails, scenery, and right). adventure….. Throw in a rich cycling history, burgeoning cycling While Waikato’s cycle trails are communities and infrastructure — already part-way through this guide outfits, shuttle services, bike journey, the diagram provides a shops, and bike-friendly coffee houses valuable framework for where to — a trip to BC is not just a vacation, focus effort in order to become fully but a necessary pilgrimage for the sustainable and grow demand – discerning mountain biker. and the importance of thinking Excerpt from the foreword Mountain beyond the trail. Bike Tourism: The essential guide to developing, managing and marketing mountain bike tourism product in BC, third edition, 2015.
Source: Destination British Columbia: The Mountain Bike Tourism, 2015.
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WHAT NEEDS TO HAPPEN TO ACHIEVE THE NETWORK OVER TIME?
Three tranches of activity Figure 6: Three tranches The business case identifies three tranches of activity to achieve the benefits over the 30-year timeframe (see Figure 6). Enhance and extend Tranche 1: In the Strategic Case we identify the key objectives of each tranche and the cycle trails main changes needed to achieve these objectives. In the Economic Case we examine different options to give effect to the
tranches – including what the key activities are in each tranche and how they are best phased and sequenced. We then identify what an optimal Develop Grow service programme of activity would look like over 30 years. the Waikato Tranche 2: cycle trail providers
network
Develop capability Tranche 3: and capacity
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Tranche 1: Enhance and extend trails
This tranche supports the development of a regional plan for enhancement and extensions, providing a consistent quality and grade experience and maximising regional economic development.
Appendix 3 summarises the current planned trail enhancement and extension activity by the WRCTN over the next 10 years. Some of this The key objectives of Tranche 1 are: activity is in construction stage, while the rest of it is in various stages of planning. Achieve desired grade consistency and quality to deliver a safe and consistent experience One of the roles of the WRCTN would be to help further develop this long- Agree a region-wide vision for Waikato’s cycle trails, term view – including exploring whether, and if so how, the existing trails including physical network connections could connect to each other over time. The WRCTN would work with stakeholders to achieve consensus on developing this vision and agreeing how it would be funded to the benefit of local communities.
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Tranche 2: Grow service providers
While tourism is one of the Waikato’s key economic sectors, it is also one where there is considerable unrealised value.
Capturing this additional tourism value requires a greater number of authentic experiences and assets, deepening the interconnection between these experiences, and attracting value-add activity to existing tourism assets. The key objectives of Tranche 2 are: Waikato’s cycle trails offer a range of grades and a range of urban and rural environments – including backcountry, riverside, historical, volcanic and Identify business potential in local communities lakeside. When trails are looked at individually, there are investment Promote opportunities to invest in local cycle trail opportunities that can be captured and supported. services
However, when looked at as a total system these opportunities become Help service providers get established and support much greater and are available for not only the individual trail, but the entire them to deliver to an agreed customer experience network. Grow local community support and engagement For example a single cycle trail may present limited opportunities for
overnight accommodation because it is an easy grade one-day experience. However, when connected to other trails in the vicinity, a 2-3 day experience can be leveraged, creating opportunities for accommodation, daytime refreshment and evening dining experiences as well as other related tourism opportunities.
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Tranche 3: Develop capability and capacity
At a regional scale, the network is a series of cycle trails that operates as a single system, with trail managers and service providers working towards a common vision. This system needs to work as a coherent whole to maximise the investment, business growth and employment opportunities.
This tranche unlocks existing capability and capacity constraints, to improve The key objectives of Tranche 3 are: value for money of trail investment and support local communities to grow visitor demand and generate more economic activity. Deepen understanding of customer experience and forecast market demand
Establish a region-wide approach to governance
Enable effective stakeholder relationships Support quality marketing and product development Leverage opportunities to achieve sustainable funding Leverage opportunities to achieve sustainable trail governance and operations
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Impacts and benefits to New Zealand from investing in the WRCTN
The figure below outlines the impacts and benefits expected from investment to establish a network of cycle trails in the Waikato region.
INTERVENTIONS BENEFITS
Achieve desired grade consistency and quality to deliver a safe and consistent experience More international, Tranche 1: Agree a region-wide vision for out-of-region and Creating jobs through the design, Enhance and extend trails Waikato’s cycle trails, including local visitors stay construction and maintenance of the longer and spend physical network connections region’s cycle network Identify business potential in local more during their communities visit Promote opportunities to invest in local cycle trail services Help service providers get established and support them to deliver to an Creating a high-quality tourism asset agreed customer experience Cycle trails and Enhancing New Zealand’s Tranche 3: Grow local community support and communities competitiveness as a tourism engagement Grow service providers deliver greater destination Deepen understanding of customer value for money experience and forecast market on existing Providing on-going employment and demand investment economic development opportunities for Establish a region-wide approach to regional economies governance Enable effective stakeholder relationships Future Tranche 3: Support quality marketing and product investment into development Develop capability and the cycle trails Delivering other benefits: recreational, capacity Leverage opportunities to achieve optimises sustainable funding health, cultural and environmental regional benefits Leverage opportunities to achieve sustainable trail governance and operations
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STRATEGIC ALIGNMENT
The WRCTN aligns with economic and social development strategies at a New Zealand is focusing future marketing activity on attracting more national, regional and local level. international visitors to participate in cycling-based holidays.
It is also consistent with DOC’s outcome of enriching New Zealanders and National alignment visitors through outdoor experiences, and “stretch goal” milestones where 50% of international holiday visitors come to New Zealand to connect with At the highest level, the project is consistent with the Government’s policy our natural places and 90% of New Zealanders’ lives are enriched through programme, which is based on the policies advanced in the Labour Party’s connection to nature.22 , the and the pre-election Fiscal Plan Coalition Agreement Confidence The project is aligned to the New Zealand Cycle Trail primary objectives of and Supply Agreement. As noted in the Budget Policy Statement,19 creating jobs and a high-quality tourism asset, and maximising the range of priorities include sustainable economic development, supporting the regions, complementary benefits that the cycle network provides to a wide range of and sharing the wealth generated by our economy with a wide range of New New Zealanders. MBIE administers funding in support of these objectives to Zealanders. maintain the quality of, and enhance and extend, the Great Rides.23 The (GPS) sets out the Government Policy Statement on Land Transport The Ministry of Health recognises the health benefits of cycling and the government’s priorities for expenditure from the National Land Transport role of the New Zealand Cycle Trail as a healthy and enjoyable way to see Fund over the next 10 years. The draft 2018 GPS supports continued the country.24 investment in the development of the New Zealand Cycle Network, including the premium tourism trails (the Great Rides) and the connecting Heartland Rides.20 Enhancing and extending the New Zealand Cycle Trail is a priority action in the New Zealand Tourism Strategy, 21 as is regional dispersal. Tourism
19 The Treasury, 2017. 23 http://www.mbie.govt.nz/info-services/sectors-industries/tourism/nga-haerenga-new-zealand-cycle-trail 20 https://www.transport.govt.nz/assets/Uploads/Our-Work/Documents/Draft-GPS-2018.pdf. Accessed Accessed March 2018. April 2018. 24 https://www.health.govt.nz/your-health/healthy-living/food-activity-and-sleep/physical-activity/activity- 21 Ministry of Business, Innovation & Employment, 2016. guides/cycling. Accessed May 2018. 22 Department of Conservation, 2016.
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Regional alignment The Tourism Opportunities Plan,26 developed by Hamilton and Waikato , provides a framework for The Waikato Regional Council is encouraging partners to support Tourism investment and in-kind support for their local trail, and to continue to engage driving growth in Waikato’s local tourism with the trails Network to identify and grow the economic and other benefits sector and regional economy. The Plan of the trails for their district and the region as a whole. identified Waikato’s status as “the home of cycling” as one of its “emerging has recognised the potential value of a fully Waikato Means Business experiences”, which have the potential to realised cycle trail network and, with MBIE and the Waikato Regional become “hero experiences” for the region , have co-funded the development of this business case. Council if there is appropriate support and The development of a cycle trail network is identified as a key opportunity in development. The Plan calls for an the Waikato Plan.25 The Waikato Plan is the overarching strategic plan for integrated approach to cycling in the the whole region that was developed by the region’s leaders to address the region. challenges the region faces over the next 30 years. Action 6 of the Plan is to encourage the development of a nationally significant cycling and walking Destination Coromandel recognises the HRT as a significant asset for the experience. region and one that has a major role to play in making the Coromandel a year round destination.27
Destination Great Lake Taupō identifies a strategic opportunity to position the area alongside and leverage off other regions with an existing strong cycle tourism market.28
The Regional Transport Committee, comprising all councils in the region, recently consulted on the draft 2018 update to the 2015 Waikato Regional Land Transport Plan. The proposed changes state an objective to “Maximise opportunities and grow a connected network of regional cycle trails” under the plan’s “strategic corridors and economic development” priority.29
25 The Waikato Plan is governed by a Joint Committee formed under Schedule 7 of the Local 27 https://www.thecoromandel.com/assets/DC-Beyone-2025-Support-Doc.pdf. Accessed June 2018. Government Act to guide implementation of the Plan, comprising local government representatives, 28 https://www.greatlaketaupo.com/media/2792751/Destination-Great-Lake-Taupo-Strategy-2016-26.pdf tāngata whenua representatives, independent non-local government members (representing business Accessed June 2018. and the community), and non-voting members (government agencies). 29 https://www.waikatoregion.govt.nz/assets/WRC/Council/Policy-and-Plans/Transport/RLTP/5961-RLTP- 26 http://www.hamiltonwaikato.com/media/3202/hwt-opportunities-plan-by-trc-tourism-290716.pdf Summary-WB.pdf. Accessed April 2018.
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Local alignment Council Alignment to strategies Waipa District Council 2018–2028 Long Term Plan (funding allocated) Waikato councils have been involved in working together with cycle trail Cycling Trails Strategic Framework managers and their partners across the region, including Regional Tourism South Waikato District 2018–2028 Long Term Plan Offices (RTOs), as part of the trails Network group. Network partners have Council District Marketing Plan agreed that their top shared priority is to realise the local economic benefits Taupō District Council Walking and Cycling Strategy from the trails and support service growth and job creation. Currently developing a transport strategy which will Table 5 lists the key council strategies that guide cycling investment across incorporate cycle trails the Waikato region.
Table 5: Key council strategies Council Alignment to strategies Waikato Regional Council Cycling in the Waikato Region Programme Business Case 2017 Waikato Regional Road Safety Strategy 2017–21 (priority on walking and cycling safety including safe infrastructure) Regional walking and cycling strategy 2009–2015 Waikato District Council Trails Strategy 2016: Walkways, Cycle ways and Bridle Trails Thames Coromandel 2018–2028 Long Term Plan to extend the HRT cycle trail District Council to Grahamstown Matamata-Piako district 2018-2028 Long Term commitment to develop nodes to councils scenic side points on the cycle trail and to extend the trail south to Piarere Hauraki District Council Roading Asset Management Plan Economic Development Strategy (actively support tourism and other business ventures that make the District an attractive place to live in and visit; and, facilitate business development along the Hauraki Rail trail) Social Strategy (council’s sport and recreational facilities are fit for purpose and affordable; and, walking and cycling networks are integrated and accessible for our communities and visitors)
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RISKS, CONSTRAINTS AND DEPENDENCIES
The following tables set out the risks, constraints and dependencies of a Table 7: Constraints of investment in the WRCTN WRCTN. Impacts are described as either low, medium or high. Constraints In this context, a “risk” is the chance of something happening that will have an impact on the achievement of the network (see Table 6), rather than a Sufficient local funding achieved to unlock the funding contribution from risk at an individual trail level. central government Capacity and capability of trail governance, and management and Table 6: Risks of investment operational staff
Risk Impact Likelihood Capacity and ability of council staff, including ability to prioritise resources and provide funding Change of government priorities negatively impacts access to High Low-medium “Dependencies” are any actions or developments required of others and government funding contribution outside the scope of this programme, and on which the success of the investment proposal depends (see Table 8). Inability to achieve local funding share High Medium to unlock central funding contribution Table 8: Dependencies of investment in the WRCTN Ongoing sustainability of regional High Low-medium support, including political support Dependencies
The development of other cycle-related attractions to achieve critical mass for the region’s cycle tourism – for example, leveraging “Constraints” are limiting parameters within which the investment in a development of the Avantidrome, and completion of the Te Awa Great network must be delivered (see). New Zealand River Ride and the Raglan and Perry Bike Skills Park. Planning for on-road rides to address road safety issues.
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ECONOMIC CASE
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Introduction
The Economic Case identifies and assesses three alternative scenarios for Importantly, the scenarios also take into account future investment in the establishing and operating a cycle trail network in the Waikato region. The cycle trails, as part of considering the level of output achieved from a set three scenarios have been developed in close consultation with the level of investment under each scenario. WRCTN, using an iterative process. Less funding and fewer personnel mean that fewer opportunities are taken, and that they are taken at a slower pace. Cycle trails would continue to What does each scenario involve? operate relatively independently of each other, and visitor growth and The scenarios differ in the type and quantum of benefits they deliver, and economic activity in local communities would be lower than it otherwise each requires a different mix of investment and resource to be successful. could be. The scenarios are underpinned by activity grouped into the three tranches, By comparison, more personnel and funding focused at a regional level as shown below. means more initiatives are delivered across the Waikato to leverage cycle trail assets, improving the visitor experience and increasing visitor numbers and length of stay.
How does the investment impact those who ride the cycle trails and the community? Trail managers, the regional council and local councils, RTOs and key government agencies have worked together closely to determine the practical implications of each scenario for both the visitors riding the cycle trails and the community, and to analyse how the network would benefit local communities and the Waikato region. This assessment, along with a cost benefit analysis, is used to consider the relative merits of each scenario and identify which scenario is the preferred investment approach.
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What are the scenarios?
This business case uses three scenarios – “BAU”, “incremental” and BAU INCREMENTAL TRANSFORMATIONAL “transformational” – to describe alternative options for a region-wide SCENARIO SCENARIO SCENARIO approach to leveraging cycle trail assets and growing economic activity in local communities. Ability to deliver a comparative advantage Low Low – moderate Moderate – high The three scenarios should be seen as being on a continuum, with the for Waikato “BAU” scenario at one end and the “transformational” scenario at the other. Increased visitors, The “incremental” scenario falls between the two. length of stay and Low Moderate High average daily spend The “BAU” scenario, which is the bottom scenario, represents the status quo option – essentially a continuation of the existing WRCTN. By comparison, Regional economic Low Low – moderate High development benefits the “transformational” scenario delivers greater benefits, with more emphasis on engaging with and influencing stakeholders, and the nature of Financial cost of Low Low – moderate Moderate the activity across the three tranches is more complex. scenario The table on the right introduces the scenarios at a high level. Table 9 on Scenario constraints page 63 summarises and compares each of the three scenarios, bringing to (local funding share and High Moderate Low life how the scenarios differ from each other, in terms of: capacity and capability) visitor experience extending and connecting cycle trails economic activity in the regions community support cycle trail governance, funding and operations. Table 10 and discussion on pages 66–78 set out the key activities required to give effect to each scenario and the benefits that are expected.
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Table 9: Summary of the three scenarios
BAU SCENARIO INCREMENTAL SCENARIO TRANSFORMATIONAL SCENARIO
New Zealanders do not think of the Waikato as a “must Waikato is known as the home of cycling, with world-class Waikato residents are proud of their cycle trails and see visit” place for cycle trails. facilities, ranging from the Avantidrome, to mountain bike them as a great asset to the region. Cycle trails in the Waikato region feel independent of each parks and cycle trails. Over time, trails take similar approaches to providing other. There is little consistency in approach to signage There is a range of cycle trail experiences in the Waikato – information to visitors and customers learn the best way to and interpretation. from easy, scenic rides to harder rides in the “back country”. book services through word of mouth and social media. There is noticeable difference in overall quality across All cycle trails deliver to agreed customer experiences. Although trails can vary in quality and look and feel, this is different cycle trails. It’s easy to book all the services required, regardless of the Visitor not considered a big issue and visitors accept this as the particular cycle trail. All cycle trails have a common feel to perception, Booking transport, accommodation and other services can “way it is”. experience be difficult and some cycle trails do this better than others. them in terms of signage, interpretation, safety and booking and profile There is a small but steadily increasing proportion of out-of- information. The majority of cycle trail visitors are from the Waikato and region visitors, often including their cycle trail visit as part of As Waikato’s domestic tourism grows, so does the number surrounding regions, travelling 1–2 hours and undertaking a wider holiday. day trips only. Overnight trips are usually limited to one of cycle trail visitors. Visitors from Auckland and the rest of night stays. International visitor numbers slowly increase, although there the North Island make up a significant proportion of domestic is limited information about actual numbers and limited cycle trail visitors. Few international visitors are aware of the Waikato’s cycle insight into the factors that influence their decision to visit the International visitors increasingly visit the Waikato’s cycle trails. International visitor numbers to the cycle trails are region’s cycle trails. relatively low and do not increase over time. trails as part of their New Zealand experience. Most cycle trails achieve a consistent level of grade quality, Cycle trails achieve a consistent level of grade quality, and but over a longer period compared to the “transformational” significant additions are made to the network to maximise scenario. regional economic activity. Over time, cycle trails reduce their development aspirations, with the main focus shifting to maintaining their existing An agreed regional plan describes future investment in An agreed regional plan describes future investment in Cycle trail assets and, where possible, getting them up to a higher cycle trails extensions, but there is insufficient resource to cycle trails extensions. The plan integrates with enhancements standard. consult on the plan widely, meaning the plan isn’t fully neighbouring regions, as well as other rides – including and extensions integrated with Heartland rides and adjacent regions, and Heartlands and urban cycling tracks. Most cycle trails improve grade consistency and quality, but there’s inadequate central and local government planning. over a longer timeframe compared to other scenarios. The plan is fundable, with funding allocated in councils’ long Some councils allocate funding for cycle trail extensions in term plans and the regions’ growth strategies. The plan their local community, but the regional plan has funding aligns with future planning by both central government (for gaps. example, NZTA) and councils. Cycle trail activity sustains new businesses in local Overtime, cycle trail activity attracts a number of new communities. It attracts significant local community businesses into local communities, but majority of investment in accommodation and cafes, and in key investment is incremental, with limited “big-ticket’ infrastructure improvements (for example, wharves for ferry Some new business are established to service cycle trail investment. transport). Service visitors – however a number do not survive in the long run. Councils and business associations understand what a There is a significant increase in visitors’ average daily providers Existing businesses are slow to see potential opportunities successful cycle trail operation looks like and communicate spend because there are more options for accommodation and adapt their business offering to cycle trail visitors. this to potential business investors. and activities. Some councils have economic development plans to Stakeholders and prospective businesses have access to a leverage cycle trails. “single source of truth” for customer insight and demand forecast.
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BAU SCENARIO INCREMENTAL SCENARIO TRANSFORMATIONAL SCENARIO
Councils and business associations know what a successful cycle trail operation looks like in their community, and they pro-actively communicate this to potential business investors. Councils and business associations have complementary plans for growing and supporting business activity, and these are aligned with the regional cycle trail extension plan. Local businesses understand the value of the cycle trails and have invested in their operations to deliver services consistent with the desired customer experience. High-profile cycle trail events are organised across the Waikato region, providing a drawcard for visitors to local Some communities succeed in establishing popular and communities. regular events based around their cycle trails, for example Schools use the cycle trails for a range of education The level of community support and awareness of cycle community-based and national events in Taupō. purposes, such as cycle safety, environmental education, Community trails in small towns is uneven. Some councils and A number of councils and business associations actively and outdoor education. support communities do not see it as a priority, or do not see the full potential it offers their community. promote the cycle trails to grow economic activity, but there Councils have strong social licence to support and invest in are some stakeholders and councils that do not see the cycle trails and to actively support businesses to leverage value of cycle trails in their communities. commercial opportunities. Businesses in the Waikato understand the value of contributing funding and sponsorship to cycling in the region.
Cycle trails operate relatively independently of each Cycle trails have access to specialist expertise to support Cycle trails have access to a range of specialist expertise other. While the high level of duplication across cycle them to achieve enduring land access. when it is needed, such as legal advice, land negotiations, business case development and marketing services. trail operations is recognised, there are limited resources Supplies and professional services can all be purchased for developing a structured approach to sharing best using regional supplier agreements, improving value for Cycle trails have access to shared services for maintaining practice. money. and enhancing their trails, including: Cycle trail The ability of individual cycle trails to secure local funding Best practice is developed, including from the international - asset management systems and processes, and best operations remains an ongoing challenge and seems to be getting stage, and is shared among cycle trails using a structured practice harder. There is an ongoing risk that central government approach. - safety monitoring and performance frameworks. funding will reduce in the future. Potential funders often understand the value of the region’s A strong regional approach is taken to secure funding Cycle trails enjoy greater purchasing due to a number of cycle trails, and cycle trails have greater access to central opportunities. Cycle trails become less and less reliant on regional supplier agreements. government and regional funding opportunities. central government funding. This scenario represents a continuation of the status Regional governance is provided through the existing A skilled governance group provides strong regional quo. Stakeholders remain committed to a regional-based WRCTN membership or a sub-group. Capacity leadership for maximising funding, realising opportunities approach coordinated by WRC and WMB, meeting Regional constraints limit the extent to which this group can and managing risk. The governance group works “hand-in- bi-monthly to discuss key issues and share best governance engage with and influence stakeholders and maintain glove” with the Waikato Regional Economic Development practice. However, there is limited capacity for members long-term progress. Agency (REDA). to progress initiatives outside of the meetings.
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Key: Shading represents more activity
Table 10: Summary of activity in the three scenarios
TRANSFORMATIONAL Activity BAU SCENARIO INCREMENTAL SCENARIO SCENARIO
Tranche 1: Enhance and extend cycle trails Achieve the desired grade consistency and quality to deliver a safe and consistent experience ◑ ◕ Agree a region-wide vision for Waikato’s cycle trails, including physical network connections ●
Tranche 2: Grow service providers
Develop a cycle trail model and use it to identify business potential in local communities ◔ Promote opportunities for investing in local cycle trail services Help service providers get established and support them to deliver to an agreed customer experience Grow local community support and engagement
Tranche 3: Enhance capability and capacity Establish a region-wide approach to governance Enable effective stakeholder relationships – taking a lead or support role as appropriate Leverage opportunities for achieving sustainable funding Leverage opportunities for achieving sustainable trail management and operations Deepen understanding of the customer experience and of forecast market demand Support quality marketing and product development
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SCENARIO 1: BAU SCENARIO
What happens as result of this scenario? The level of community support and awareness of cycle trails in small towns is often low, and many councils do not see the trails as a priority This scenario provides a minimal regional focus for supporting cycle in their community. trails and growing economic activity across the region. It represents the status quo in that regional stakeholders will continue to meet bi-monthly to address key issues and share best practice. While the potential of a regional approach is recognised, relatively few opportunities are realised. Stakeholders remain constrained in their ability to progress initiatives outside the meetings. There is little change to the existing profile of visitors, with the majority of cycle trail visitors arriving from around the Waikato for day trips. The volume of overnight trips remains static and is limited to one-night stays. International visitor numbers – as a proportion of total visitor numbers – remain relatively low. Compared to the other scenarios, cycle trails continue to operate relatively independently of each other. Development aspirations are reduced over time, with a number of cycle trails increasingly focused solely on maintaining their existing assets and, where possible, getting them up to a higher standard. The ability of individual cycle trails to secure local funding remains an ongoing challenge and there is uncertainty around ongoing central government funding. Existing businesses are slow to see potential opportunities and adapt their business offering to cycle trail visitors. Some new business are established to service cycle trail visitors – however, a number do not survive in the long run.
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What this scenario delivers Promote opportunities for investing in local cycle trail services Give providers access to robust tools and information to help them assess business potential (for example, long-term vision and indicative trail extension plans).
Tranche 1: Enhance and extend cycle trails
Tranche 3: Develop capability and capacity Achieve the desired grade consistency and quality to deliver a safe and consistent experience Prioritise investment in improvements needed to deliver safe trail infrastructure and experiences of consistent quality. Enable effective stakeholder relationships – taking a lead or support role as appropriate Provide regional leadership to stakeholders – bringing them “on the Tranche 2: Grow Service providers journey”, helping to remove roadblocks and realise opportunities, and advocating a consistent approach to cycle trails in local communities.
Leverage opportunities for achieving sustainable funding Advocate to councils to allocate funding for cycles trails in long term plans. Identify business potential in local communities Implement a consistent approach to discussing economic benefits with Develop a vision to communicate the full range of services that a potential funders.30 community could offer in order to fully leverage the cycle trail asset (such as accommodation, food, transport). Promote the model among Share best practice with cycle trails about how to unlock funding stakeholders to help identify economic development potential in local contributions in the local community. communities.
30 Examples could be similar to the initiative to develop and promote Waikato sports training ride Classic New Cycle Trails and Classic New Zealand Road Rides, but also investigating an itinerary in itineraries and rural cycle tourism itineraries, ideally based on the Kennett Brothers cycle books – the foothills of the Kaimai Ranges.
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Leverage opportunities for achieving sustainable trail governance and operations Share best practice to enable capacity and capability building across the network for trail managers. Coordinate a regional approach to supplier relationships to maximise cycle trails’ purchasing power and to ensure value for money for materials and professional services. Share best practice and approaches with cycle trails to support ecological restoration, biodiversity and pest management.
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SCENARIO 2: INCREMENTAL SCENARIO
What happens as result of this scenario? Key differences compared to BAU scenario This scenario realises greater benefits than the “BAU” scenario. Out-of- region visitors include their cycle trail visit as a part of a wider holiday. Differences compared to BAU scenario work programme International visitor numbers also increase, but slowly. Understanding Tranche 1: Richer interpretation along cycle trails. about why international visitors want to come to the region’s cycle trails Enhance and An agreed region-wide plan for cycle trail extensions, with funding continues to be limited. extend cycle trails provided in council long term plans. Cycle trails achieve a more consistent level of grade quality – but over a Tranche 2: Active support to councils and business associations to identify longer period compared to the “transformational” scenario, and patches Grow service economic development opportunities in local communities and providers promote them to potential and existing businesses. of low quality trails remain. Stakeholders agree a region-wide plan for Support to new businesses to help them get established and future investment in cycle trail extensions, but resource constraints limit become sustainable. the extent to which the plan is able to engage with all stakeholders. As Tranche 3: Governance group established to champion cycle trails, realise a result, it lacks full integration with other regions’ cycle trails and with Enhance capability opportunities, and help address risks. central and local government plans. A number of councils allocate and capacity Maintain customer profiles for stakeholders to use. funding for cycle trail extensions in their local community, but the Provide political advocacy in support of cycle trails. regional plan has funding gaps. Establish a common brand to market the region’s cycle trails and provide a single customer channel for promotion and information. Councils and business associations have access to information about Demonstrate cycle trail value to a family of funders. local business opportunities. While many councils use this to inform Develop and share best practice for a cycle trail operating model. their economic development plans, the information is not used widely Provide expertise and advocacy to help cycle trails achieve enough across the region to realise its full potential. enduring land access. Some communities succeed in establishing regular events based around their cycle trails (for example, a mix of community-based and national events in Taupō). While this helps create a social licence for a number of councils to invest in cycle trails, other councils do not recognise the value of cycle trails in their communities.
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What this scenario delivers Trail managers and service providers work together to deliver an agreed customer experience, tailored to individual cycle trails. Note: Yellow highlight denotes activity that is new to this scenario. Tranche 2: Grow Service providers
Tranche 1: Enhance and extend cycle trails
Identify business potential in local communities Develop a vision to communicate the full range of services that a Achieve the desired grade consistency and quality to deliver a community could offer in order to fully leverage the cycle trail asset safe and consistent experience (such as accommodation, food, transport). Prioritise investment in improvements needed to deliver safe trail infrastructure and consistent quality experience. Work with councils and stakeholders to use the model to demonstrate economic development potential. Explore the use of technology to inform track management (for example, remote monitoring of high-risk slip areas). Support councils to undertake gap analysis, comparing the “ideal” model to the current state in each community. Partner with iwi and hapū to enrich interpretation and provide a consistent approach to showcasing cultural heritage along the trails. Promote opportunities for investing invest in local cycle trail services Agree a region-wide vision for Waikato’s cycle trails, including Support councils and trail managers to use the gap analysis (above) to physical network connections identify the potential for new businesses at a local and regional level. Partner with key stakeholders, iwi and hapū to develop and agree an Where feasible, focus business opportunities at a regional level to help achievable and fundable vision for the region. providers achieve a critical mass of demand. Agree a long-term plan, aligned with the vision, for extending the trails. Give providers access to robust tools and information to help them The plan sets out physical connections, services and routes, and builds assess business potential (for example, long-term vision, funded trail on indicative costs and planning already undertaken by WRCTN to extension plans and demand forecasts). achieve an optimal mix of grade, hub and spoke, and point-to-point cycle trails.
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Help service providers get established and support them to Enable effective stakeholder relationships deliver to an agreed customer experience Provide political advocacy at central government, regional council and Share best practice with cycle trails and stakeholders about how to local council levels. support service providers to be successful (from establishment and Provide regional leadership to stakeholders – bringing them “on the funding, through to growth and innovation). journey”, helping to remove road blocks and realise opportunities, and advocating a consistent approach to cycle trails in local communities.
Support quality marketing and product development Tranche 3: Develop capability and capacity Establish a common brand to promote individual trails and services across the region. Co-ordinate regional customer engagement and promotion, including providing easy access to practical information targeted towards international and domestic visitors (for example, weather, preparation, Deepen understanding of the customer experience and of distances and grading, availability and access to services, key forecast market demand landscape features or places to explore).
Develop and maintain current customer profiles that describe visitor Leverage opportunities for achieving sustainable funding attributes. Sell the region-wide cycle trail vision to a family of funders and Maintain and make available a “single source of truth” of all business demonstrate the value to them of investing in the cycle trails, including opportunities at a community, region and cycle trail-level. corporate social responsibility. Advocate for the benefits of councils supporting and funding cycles Establish a region-wide approach to governance trails in long term plans. Establish a governance group with expertise in governance and key aspects of the network (such as fundraising, business growth, and marketing), to set the strategic direction and manage risks at a region level. Agree the role of the governance group in relation to local governance, decision-making and operations, including how the group’s role may change over the long term.
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Implement a consistent approach to discussing economic benefits with Share best practice and approaches with cycle trails to support potential funders.31 ecological restoration, biodiversity and pest management. Help cycle trails promote sustainable practices as a means for strengthening Develop best practice for how to unlock funding contributions in the community engagement. local community, and share it with cycle trails. Explore opportunities for cycle trails to achieve new funding streams, for example: - donations (such as use of QR codes on trails so visitors can easily make donations) - options for user-pay models and approaches for how this could work in practice (such as tagged bikes).
Leverage opportunities for achieving sustainable trail governance and operations Develop and maintain a best practice operational model (for example, governance arrangements, legal entity, management structures, personnel arrangements and systems and processes). Develop best practice (including from the international stage) and share in a structured way to enable capacity and capability building across the network for trail managers and service providers. Support cycle trails to achieve enduring land access, including by sharing best practice and providing advocacy, helping them meet regulatory requirements, and informing their lease versus purchase decisions. Coordinate a regional approach to supplier relationships to maximise cycle trails’ purchasing power and ensure value for money for materials and professional services.
31 Examples could be similar to the initiative to develop and promote Waikato sports training ride ‘Classic New Cycle Trails’ and ‘Classic New Zealand Road Rides’ but also investigating an itinerary in itineraries and rural cycle tourism itineraries ideally based on the Kennett Brothers cycle books – the foothills of the Kaimai Ranges.
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SCENARIO 3: TRANSFORMATIONAL SCENARIO
What happens as a result of this scenario? average daily spend of visitors due to more accommodation and activity options. This scenario achieves the greatest level of benefits of all three scenarios. It requires a skilled governance group and dedicated team to There are high levels of community engagement across the region. A unlock the full potential of the region’s cycle trails. number of high-profile cycle trail events providing a drawcard for visitors to local communities, and cycle trails are used by schools for a range of The Waikato is known as the home of cycling, with world-class facilities education purposes. ranging from the Avantidrome, to mountain bike parks and cycle trails. Cycle trail visitor numbers increase alongside growth in the Waikato’s domestic tourism, with a significant proportion of domestic visitors Key differences compared to “incremental” travelling from Auckland and the rest of the North Island. Increasingly, scenario international visitors see the region’s cycle trails as a key part of the New Zealand experience. Differences compared to “incremental” scenario work programme Cycle trails achieve a consistent level of grade quality, and over a Tranche 1: Cycle trails have improved access to funding and greater Enhance and capability and capacity to achieve a consistent level of grade shorter period compared to the other scenarios. An agreed plan sets extend cycle trails quality over a shorter period. out future investment in the region’s cycle trails extensions, fully A fully funded region-wide plan for cycle trail extensions integrated with central government and council plans and with other activates waterways and is fully integrated with central government and council plans, as well as Heartland rides and cycle trails in neighbouring regions. Businesses in local communities cycle trails in other regions. and rural areas understand the value of contributing funding and Increased level of proactive support to promote business sponsorship to cycling in the region, and funding is allocated in all Tranche 2: Grow service providers opportunities in local communities, and to support new council long term plans. As a result, cycle trails become less and less businesses to become sustainable. reliant on central government funding. Dedicated support to grow community engagement, working closely with cycle trails to deliver events and school Councils and business associations have a clear vision about what a programmes, and helping establish a social licence for successful cycle trail operation looks like in their community, and they councils to invest in cycle trails. pro-actively communicate this vision to potential business investors. Local businesses understand the value of the cycle trails and have invested in their operations to deliver services consistent with the desired customer experience. There is a significant increase in the
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Differences compared to “incremental” scenario work programme
Tranche 3: A “single source of truth” of all customer information and Enhance capability visitor forecast to stakeholders across the region. and capacity Lead role working with tourism organisations to attract international visitors to the region’s cycle trails. Co-ordinated approach to central, regional and local funders – selling the value of the cycle trails, maximising funding opportunities, and exploring alternative funding streams for cycle trails. Delivery of shared services to cycle trails (for example, finance, health and safety, and asset management systems). Support to strengthen asset management and incorporate it into long-term financial planning.
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What this scenario delivers - connecting with rides in other regions - integrating with Heartland Rides and urban connections Note: Yellow highlight denotes activity that is new to Scenario 3. - activating waterways and rivers, including trail extension (for example, Port Waikato to Taupō) and transport (for example, Maritime Park to Paeroa central, Thames to Kaiaua, and returning from Ngaruawahia). Tranche 1: Enhance and extend cycle trails Trail managers and service providers work together to deliver an agreed customer experience, tailored to individual cycle trails.
Achieve the desired grade consistency and quality to deliver a safe and consistent experience Prioritise investment in improvements needed to deliver safe trail infrastructure and experiences of consistent quality. Tranche 2: Grow Service providers Partner with iwi and hapū to enrich interpretation and provide a consistent approach to showcasing cultural heritage along the trails. Explore the use of technology to inform track management (for Identify business potential in local communities example, remote monitoring of high-risk slip areas). Develop a vision to communicate the range of services that a Develop sustainable trail maintenance programmes. community could offer in order to fully leverage the cycle trail asset (such as accommodation, food, and transport). Agree a region-wide vision for Waikato’s cycle trails, including physical network connections Work with councils and stakeholders to use the vision to demonstrate Partner with key stakeholders, iwi and hapū to develop and agree an economic development potential. achievable and fundable vision for the region. Support councils to undertake gap analysis, comparing the “ideal” Agree a long-term plan, aligned with the vision, for extending the trails. model to the current state. The plan sets out physical connections, services and routes. It builds on indicative costs and planning already undertaken by WRCTN to achieve an optimal mix of grade, hub and spoke, and point-to-point cycle trails. Considers options for:
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Promote opportunities for investing in local cycle trail services Support councils and trail managers to use the gap analysis (above) to identify the potential for new businesses at a local and regional level. Where feasible, focus business opportunities at a regional level to help Tranche 3: Develop capability and capacity providers achieve a critical mass of demand. Give providers access to robust tools and information to help them assess business potential (for example, long-term vision, funded trail extension plans and demand forecasts). Deepen understanding of the customer experience and of Help service providers get established and support them to forecast market demand deliver to an agreed customer experience Curate and make available the “single source of truth” of volume and Share best practice with cycle trails and stakeholders about how to customer data for use by trail managers, councils, RTOS, and potential support service providers to be successful (from establishment and investors and funders. This includes sourcing existing data and funding, through to growth and innovation). generating new information (for example, delivering consistent market Connect service providers with councils to leverage local economic surveys over time). development opportunities and comply efficiently with regulatory Develop and maintain current customer profiles that describe visitor requirements. attributes.
Grow local community support and engagement Forecast domestic and international demand at a region and cycle trail- Grow community support through events centred on cycle trails, for level. example, cycling education programmes in schools, events, and Maintain and make available a “single source of truth” of all business competitions. opportunities at a community, region and cycle trail-level. Demonstrate to councils the community support for the cycle trails and Establish a region-wide approach to governance the health benefits of the trails. Establish a governance group with expertise in governance and key aspects of the network (such as fundraising, business growth, and marketing), to set the strategic direction and manage risks at a region- level. Agree the role of the governance group in relation to local governance, decision-making and operations, including how the group’s role may change over the long term.
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Determine whether an independent legal entity should be established to existing tourist attractions, and cycling infrastructure, in order to develop support effective governance and deliver a regional work programme. If new products and promote existing cycle routes – for example: required, determine the optimal entity type and establish the entity. - consolidate cycling infrastructure for different markets into multi- Enable effective stakeholder relationships faceted experiences (for example, Hobbiton and scenic attractions) Provide political advocacy at central government, regional council and - multi-day cycling stays local council levels. - promoting different segments of the cycling market Provide regional leadership to stakeholders – bringing them “on the - inter-regional connections (including proximity to Auckland). journey”, helping to remove road blocks and realise opportunities, and advocating a consistent approach to cycle trails in local communities. Explore the feasibility of, and if appropriate take the lead in, implementing Qualmark accreditation across the region’s cycle trails. - Lead central government relationships (for example, MBIE, NZTA and DOC). Leverage opportunities for achieving sustainable funding - Achieve the desired integration between the Great Rides, Sell the region-wide cycle trail vision to a family of funders and Heartland Rides and urban connections. demonstrate the value to them of investing in the cycle trails, including corporate social responsibility. - Co-ordinate a joined-up approach with the region’s RTOs, economic development agency, and business associations. Co-ordinate a regional approach to maximise funding contributions – at a national level (for example, National Land Transport Fund, Provincial Support quality marketing and product development Growth Fund, and Great Rides) and regional level. Investigate how to Establish a common brand to promote individual trails and services leverage existing government funding for cycle trails (for example, across the region. biodiversity funding) and represent cycle trails in a national discussion about alternative funding models. Co-ordinate regional customer engagement and promotion, including providing easy access to practical information targeted towards Advocate for the benefits of councils supporting and funding cycle trails international and domestic visitors (for example, weather, preparation, in long term plans. distances and grading, availability and access to services, key landscape features or places to explore). Provide regional leadership to NZCT, Tourism NZ, regional tourism organisations, and business groups, for marketing to domestic and Australian and other international visitors. Leverage the Waikato’s proximity to large population centres and international arrival points,
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Implement a consistent approach to discussing economic benefits with - volunteer management potential funders.32 - asset planning and management Develop best practice for how to unlock funding contributions in the - monitoring, evaluation and reporting (performance and benefits local community and share it with cycle trails. Explore opportunities for evaluation, user information). cycle trails to achieve new funding streams, for example: Coordinate a regional approach to supplier relationships to maximise - donations (such as use of QR codes on trails so visitors can easily cycle trails’ purchasing power and ensure value for money for materials make donations) and professional services. - options for user-pay models and approaches for how this could Develop best practice safety systems for cycle trails. Provide a common work in practice (for example, tagged bikes). approach for cycle trails to monitor the performance of their safety Leverage opportunities for achieving sustainable trail systems and identify components of the system that need to be governance and operations strengthened. Explore the use of technology to inform track management (for example, access to locator beacons in remote Develop and maintain a best practice operational model (for example, places). governance arrangements, legal entity, management structures, personnel arrangements and systems and processes). Share best practice and approaches with cycle trails to support ecological restoration, biodiversity and pest management. Help cycle Share best practice in a structured way to enable capacity and trails promote sustainable practices as a means for strengthening capability building across the network for trail managers and service community engagement. providers. Maintain a long-term regional view of asset replacement, to inform Support cycle trails to achieve enduring land access, including by funding discussions and decisions on long-term planning. sharing best practice and providing advocacy, helping them meet regulatory requirements, and informing their lease versus purchase decisions.
Where appropriate, establish shared services to cycle trails, for
example:
- finance
32 Examples could be similar to the initiative to develop and promote Waikato sports training ride ‘Classic New Cycle Trails’ and ‘Classic New Zealand Road Rides’ but also investigating an itinerary in itineraries and rural cycle tourism itineraries ideally based on the Kennett Brothers cycle books – the foothills of the Kaimai Ranges.
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ANALYSING THE THREE SCENARIOS
We have analysed the three scenarios to provide a detailed comparison of Important note about the assumptions used in the how they are expected to differ in the benefits they will achieve and the level CBA of investment required. This analysis is based on a number of assumptions, which are set out in Appendix 5. Approach to the cost benefit analysis Visitor assumptions The analysis is based on the Cost Benefit Analysis (CBA) model for The CBA is sensitive to visitor assumptions, in particular the number of assessing Great Rides submissions for NZCT funding, adapted for this visitors, the type of visitor (eg domestic or international), the visitors’ average business case. daily spend and how long they stay. The CBA model quantifies the monetary value of the benefits associated The visitor assumptions are based on the best information available, with increased numbers of visitors to the cycle trails, spending more per visit however there is limited data to draw on from either international or New and staying for longer. The model distinguishes between different types of Zealand sources. Assumptions about visitor numbers, spend and length of visitors (international, out-of-region and local) and whether they visit the stay are conservative so as to not overstate the expected benefits. cycle trails for a single day or over multiple days. We have used intervention logic to test whether the WRCTN’s activities The benefits are expressed in terms of GDP from visitor spend in the would deliver the expected benefits described in the business case. This Waikato, health benefits of more people using the trails, and consumer provides a basis to estimate an approximate “order of magnitude” impact on surplus (these benefits are described in Figure 5, page 46, in the Strategic visitors and compare the different scenarios. Case). Future investment to develop the cycle trails The model compares the monetary value of the benefits with the cost of the scenarios. The cost includes the operating expenditure for delivering the The CBA considers future investment in the cycle trails under each scenario scenario work programme, and the capital and operating cost of enhancing (approximately $23 million over the next 10 years). This investment and expanding the cycle trails. assumption is based on work done by each cycle trail and agreed to by the WRCTN. Consistent with the approach for the NZCT funding submissions, analysis is over a 10-year period.
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Presentation of the analysis In the Strategic Case, the benefits of the WRCTN are described according to three categories of benefits:
Regional focus increases trail demand and economic activity in local communities
Greater value for money from existing investment
Future investment into the cycle trails optimises regional benefits
The remainder of this section presents the CBA using these groupings, summarising the inputs, outputs and benefits of each scenario. An aggregate view of the CBA is then presented and the preferred scenario is identified.
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Regional focus increases trail demand and economic activity in local communities
Table 11 outlines the cost of the WRCTN and some of the benefits associated with increasing cycle trail demand and economic activity in local communities. It is important to note that this table only presents part of the picture. From a narrow view, it shows that the “BAU” scenario compares well against the other scenarios due to its relatively low cost. However a very different picture emerges when a wider view is taken into account, as demonstrated in Table 12 and Table 13.
Table 11: Regional focus increases trail demand and economic activity in local communities
BAU SCENARIO INCREMENTAL SCENARIO TRANSFORMATIONAL SCENARIO
WRC co-ordinates meeting bi-monthly with key Scenario requires 1 additional FTE personnel to work The scenario is resourced with 2 FTE personnel, stakeholders. There is no formal governance group alongside cycle trails, councils and other stakeholders. ideally located together and operating as a close-knit under this scenario, or dedicated funding to progress A small amount of additional operating expenditure team, and working closely with a large number of initiatives outside of the WRCTN’s meetings. would be used to deliver the work programme. stakeholders (including cycle trails, councils, RTOs, Stakeholders are very committed to a regional-based Full-year operating cost $230,000 per annum. local businesses, central government, iwi and Waikato Inputs approach, but remain constrained in their ability to REDA). Additional operating expenditure would be progress initiatives. used to commission external expertise to deliver the The cost of the WRCTN is the lowest compared to the work programme. other scenarios (total cost approximately $50,000 per The cost of the WRCTN is the highest of the scenarios annum). (approximately $430,000 per annum). “Self-help” tools to identify potential opportunities for Outputs in “BAU” scenario, plus: Outputs in “transformational” scenario, plus: local businesses to leverage cycle trail assets, and Agree with stakeholders a vision for future cycle trail Provide strong regional leadership, bringing together asses the investment potential of those opportunities. investment, with some funding gaps remaining. national and regional stakeholders. Provide regional leadership to key stakeholders. Work closely with council and stakeholders to identify Agree with stakeholders a long-term, fundable plan to and promote opportunities to leverage cycle trails in extend the trails to optimise regional benefits, joined- local communities and across the region. up with council and central government long term Provide data to inform decision support for plans. communities and potential investors. Work closely with councils and communities to Outputs Share best practice with councils and communities for demonstrate the value of cycle trails in the community, how to support new businesses get established and be and grow social licence for cycle trails. successful in the long term. Facilitate strong relationships between councils and Establish and promote a regional cycle brand for the local businesses to maximise economic development Waikato and provide support to cycle trails around potential. customer engagement and promotion. Provide leadership to national and regional stakeholders to promote cycle trails to international visitors.
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BAU SCENARIO INCREMENTAL SCENARIO TRANSFORMATIONAL SCENARIO
Minor increase in overall number of visitors, with no Low-moderate increase in the overall number of Increase in visitors, including international and out-of- change to the proportion of internal or out-of-region visitors. Majority of increase is attributed to local single region visitors attracted by greater promotional activity. visitors. day visitors. Small but steady increase in the proportion of out-of- region visitors and international visitor numbers commensurate with increased promotion activity.
The vast majority of cycle trail visitors arrive from Small increase in the proportion of multi-day visitors Increase in multi-day visitors. Greater proportion of around the Waikato for day trips. staying more than one night, constrained by those visitors stay more than one night due to Benefits accommodation options. improved accommodation and food and beverage options. No change to the average daily spend of visitors. Small increase in the average daily spend of visitors. Increase in the average daily spend of visitors.
Overtime, cycle trail activity attracts a number of new Cycle trail activity sustains new businesses in local businesses into local communities, but majority of communities and attracts significant local community investment is incremental, with limited “big-ticket’ investment in accommodation and key infrastructure investment (eg new accommodation) improvements (eg wharf for ferry transport).
Summary
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Greater value for money from existing investment
Table 12 captures the benefits of the WRCTN in terms of better value for money from cycle trail investment. Building on the benefits outlined in the previous table, the “hybrid” and “transformational” scenarios are able to attract more investment, deliver greater value for money, and achieve far greater regional benefits as a result. The “BAU” scenario, by comparison, remains heavily constrained by its limited ability to achieve the local funding share and capability and capacity.
Table 12: Greater value for money from existing investment
BAU SCENARIO INCREMENTAL SCENARIO TRANSFORMATIONAL SCENARIO
Cycle trail investment continues to be constrained by Cycle trail investment is somewhat constrained by local Cycle trail investment is not constrained by local local funding share. funding share (but less so compared to the “BAU” funding share. - Total cycle trail investment over 10 years is less than scenario). Total trail investment over 10 years is based on Inputs what is currently required (20% below the level of Approximately $23 million of investment over 10 years current ambitions (approximately $24.5 million over 10 investment indicated by cycle trails). (5% below the required level of investment indicated by years). - Approximately $19 million of investment over 10 cycle trails). years.
Outputs are limited by capability and capacity constraints. Outputs are less constrained by capability and capacity issues Few constraints on outputs, although there is still a need compared to the “BAU” scenario, but constraints still exist. to prioritise activity over time.
Trail activity: Trail activity: Trail activity: Trail enhancement is targeted toward high priority areas Majority of planned enhancement activity to shift All planned enhancement activity and trail extensions of focus. existing cycle trails from “good to great”. over a 10 year horizon are carried out. Some, but not all, of the planned cycle trail extensions Most of the planned cycle trail extensions are are carried out to. undertaken. WRCTN deliverables: WRCTN deliverables: WRCTN deliverables “transformational” scenario, plus:
Outputs Best practice is informally shared about: how to unlock Governance to provide strategic direction around Development of a sustainable and best practice trail regional funding opportunities; core trail operations; and funding, demand and capability at a region-wide level. maintenance program across the region. biodiversity and pest management. Political advocacy at central government and local Maintain long term asset management view to inform government levels. funding need across the region. Partner with iwi and hapū to showcase cultural heritage Deliver shared services to cycle trails, delivering a along the trails and achieve consistent approach to suite of core management systems to improve interpretation. decision support and free up cycle trails to focus on Development of best practice around funding, higher-value activity. governance and operations. Best practice disseminated Explore feasibility (and, if appropriate, lead to cycle trails, supported by structured approach to implementation) of Qualmark accreditation for cycle growing capability and capacity. trails.
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BAU SCENARIO INCREMENTAL SCENARIO TRANSFORMATIONAL SCENARIO
Low-moderate increase in overall visitor numbers (an Moderate increase in visitor numbers (an average of 40 Increase in visitors, including international and out-of- average of 30 additional visitors per trail per day by additional visitors per trail per day by Year 10). region visitors attracted by greater promotional activity Year 10). Majority of visitor increase are locals undertaking single (an average of 45 additional visitors per trail per day The vast majority of additional visitors are locals day trips. by Year 10). embarking on single day trips. Bigger increase in number of international visitors and out-of-region visits on single day trips compared to the “BAU” scenario, but no further increase to international and out-of-region multi-day visitor numbers.
Benefits Of the visitors undertaking multi-day trips, most stay Increasing proportion of multi-day visitors stay more Increase in multi-day visitors. Greater proportion of one night only. than one night, but continue to be constrained by those visitors stay more than one night due to accommodation options. improved accommodation and food and beverage options (30% of multi-day visitors stay more than one night by Year 10). Small year-on-year increase in average daily spend of Moderate increase in average daily spend of visitors Significant increase (45%) in the average daily spend visitors (15% increase of current average daily spend (25% increase of current average daily spend by Year of visitors due to more accommodation and activity by Year 10). 10). options – but still significantly below levels experienced in tourism hot-spots like Queenstown.
Summary
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Future investment into the cycle trails optimises regional benefits
Table 13 illustrates the benefits of additional investment beyond that set out in the previous table. The “transformational” scenario (and to a lesser extent, the “hybrid” scenario) are able to take Waikato’s cycle trail network to the next level by leveraging the increased demand for cycle trails, the improved services and infrastructure in local communities, and strengthened capability and capacity. By comparison, existing constraints mean there is no additional investment opportunity under the “BAU” scenario.
Table 13: Future investment into the cycle trails
BAU SCENARIO INCREMENTAL SCENARIO TRANSFORMATIONAL SCENARIO
Access to additional local funding and NZCT funding, Greater access to regional funding and NZCT funding, although constraints on local funding share limit as well as other potential central government funding amount of future investment. sources. Inputs n/a Scenario models an additional $3.5 million of Scenario models an additional $7 million of investment investment over 10 years (15% of the amount invested over 10 years (30% of the amount invested in the table in the table above). above).
Co-ordinating regional funders and demonstrating the In addition to co-ordinating regional funders and value of cycle trail investment to them opens up demonstrating the value of cycle trail investment (as per additional investment opportunities. the “Hybrid” scenario): Future investment is targeted toward opportunities that There is a co-ordinated approach to maximise funding maximise regional economic development, and contributions at a national-level (eg National Land leverages the benefits summarised in the previous Transport Fund and Provincial Growth Fund) and tables (eg better value for money). regional-level, as well as exploring other funds (eg Outputs n/a biodiversity funding) and alternative funding models. Strong advocacy to council to support and fund cycle trails in long term plans. As with the “Hybrid” scenario, future investment is targeted toward opportunities that maximise regional economic development, and leverage the benefits summarised in the previous tables. Low-moderate increase in additional visitor numbers Moderate increase in additional visitor numbers (an Benefits n/a (an average of 6 additional visitors per trail per day by average of 15 additional visitors per trail per day by Year 10). Year 10).
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BAU SCENARIO INCREMENTAL SCENARIO TRANSFORMATIONAL SCENARIO
Summary n/a
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Summary view of total benefits for each scenario
This section combines each of the three previous tables to provide an aggregate view of the benefits. Figure 7: Cumulative NPV Figure 7 compares the cumulative net present value (NPV) and the benefit cost ratio (BCR) for each scenario. The “transformational” scenario returns the largest BCR, at 1.5, and a NPV ($6.8 million) that has the earliest break- even (2026). Table 14 provides a breakdown of the total benefits, focusing on the regional impact. It shows that the “transformational” scenario achieves more visitors, longer visits, and higher visitor spending in the local communities. Job creation in the region is also higher compared to other scenarios, and more likely to be sustained over time.
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Table 14: Total benefits
BAU SCENARIO INCREMENTAL SCENARIO TRANSFORMATIONAL SCENARIO
Compared to all scenarios: Compared to the “BAU” scenario: Compared to all scenarios: More international and out-of-region visitors. Also, More international and out of region-visitors, staying Smallest increase in international and out of region- higher proportion of multi-day visitors staying longer longer and spending more. visitors, with no change to visitor length of stay and than one night, and a higher average daily spend (by all average daily spend. types of visitors). Some increase in regional economic activity and job Increase in sustainable economic activity and job Greatest amount of sustainable economic activity and numbers, but uncertain how sustainable this is over the creation in local communities. job creation in local communities. long term. Key points Some new businesses are established to service the Cycle trail activity attracts a number of new businesses Some large investment in local communities including cycle trails but no “big-ticket” investment occurs. into local communities, but majority of investment is new accommodation and upgrades to key community Significant lost opportunities to maximise economic incremental and limited “big-ticket’ investment occurs. infrastructure, significantly increasing average daily development in the regions. spend. Smallest amount of development to cycle trail network, Cycle trail network grows with most assets maintained Significant development results in largest cycle trail with challenges remaining to achieve a consistent level to a consistent level, although constraints on local network compared to other scenarios, with assets of quality across the asset. Local funding share and funding share limit future investment and result in lost maintained to a higher level of quality. capability and capacity constraints limit further opportunity to maximise demand. investment.
Visitors
By Year 10: By Year 10: By Year 10: Average daily spend increases from $215 to $250 Average daily spend increases from $215 to $260 Average daily spend increases from $215 to $330 Majority of multi-day visitors spend one night away only Approximately 30% of multi-day visitors come for two Approximately 50% of multiday visitors stay for one nights (with the remaining spending a single night) night, 35% for two nights and the remaining proportion (15%) stay for three nights.
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BAU SCENARIO INCREMENTAL SCENARIO TRANSFORMATIONAL SCENARIO
Breakdown of quantified benefits (over 10 years)
Additional jobs in the region
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THE PREFERRED WAY FORWARD How we determined the preferred way forward
1 Scenarios assessed against investment objectives and 2 Workshops with WRCTN and discussions with stakeholders critical success factors The WRCTN agreed the business case terms of reference and played To determine the preferred scenario, we used the analysis in the a significant role in the development of the business case, including previous section to inform an assessment of each scenario against participating in two workshops. the investment objectives and a set of common critical success The workshops helped to identify and assess benefits, risks, service factors. requirements, constraints and dependencies for different scenarios, and to provide and understanding of the implications of the scenarios Criteria for local communities and cycle trail visitors. Investment The cycle trails deliver a consistently high-quality
objective recreational experience to the community
The cycle trails increase economic activity in local communities
The cycle trails promote healthy lifestyles
Critical Strategic fit and business needs success factors Value for money Capacity and capability
Affordability
Achievability
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The “transformational” scenario: The preferred way forward
After going through the process described above it was clear that the “transformational” scenario best meets the investment objectives and the Cycle trails promote healthy lifestyles critical success factors. More local visitors to the trails and greater focus on trails sharing best practice around biodiversity and sustainability results in better outcomes for Investment objectives the environment.
The region’s cycle trails deliver a consistently high- Critical success factors quality recreational experience to the community In terms of strategic fit and business needs, all three scenarios meet the Under this scenario, cycle trails are best placed to grow capability and agreed investment objectives and related business needs and requirements, capacity to achieve NZCT’s objective of going from “good to great”. There is and they fit well with government and regional strategies. a proactive focus on schools and communities to leverage the cycle trails for Under this “transformational” scenario, value for money of existing and education purposes and establish community events, which in turn attracts future investment is optimised through developing capability and capacity – visitors and grows demand. Visitors are able to learn about the Waikato’s meaning resources and expertise are freed up to allow a focus on delivering history and experience its natural beauty and cultural heritage. a great cycle trail experience and growing economic activity in local communities. Cycle trails increase economic activity in local Although this scenario costs more, it is fully fundable and achieves the communities highest BCR (1.5). WRCTN works closely with councils, RTOs and Waikato REDA to promote
business opportunities in local communities and support new businesses to be sustainable in the long term. There is a drive to attract “big ticket” investment into the smaller towns (for example, new accommodation) to achieve higher visitor spend and, over time, attract more non-cycling visitors. The physical network is expanded in order to maximise regional economic development, particularly in smaller communities where the cycle trails will have a significant impact on economic activity.
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MANAGEMENT CASE
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HIGH-LEVEL WORK PROGRAMME
The “transformational” scenario: Impact of changes to the work programme It is important to note that changes to the work programme could affect the The preferred way forward estimated cost of the WRCTN (outlined in the Financial Case) and/or the number of WRCTN personnel needed to deliver the work programme. The Management Case focuses on the preferred approach – the “transformational” scenario. For example, deferring a large number of initiatives may mean fewer WRCTN personal are needed. Conversely, a greater number of initiatives Figure 8 on the following page provides an indicative view of the work delivered within a shorter period may require additional resources. programme for this scenario over 30 years.
If the investment outlined in this business case is approved, the intention is for a transition group to undertake further analysis and, in consultation with stakeholders, prioritise initiatives and agree a sequenced programme of work.
The pace of activity Figure 8 shows a small amount of focused activity in Year 1, with the workload increasing from Year 2, once both WRCTN personnel are recruited (the next section of the Management Case provides more detail about the WRCTN personnel). A significant amount of effort is required in Years 2–5 to set up systems and processes for many of the initiatives. After Year 5, the majority of initiatives become “BAU” activity and the level of effort is expected to smooth out. In some cases, initiatives will require regular bursts of effort (for example, periods of heightened marketing activity each year).
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Key: Darker shading denotes one-off activity (eg to set- up or refresh systems or processes) Lighter shading denotes ongoing ‘BAU’ activity Figure 8: Timing of work programme
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CAPABILITY AND CAPACITY
The success of the WRCTN will depend on the capability and capacity of its personnel. They will need to deliver a large programme, working “hand in WRCTN personnel glove” with a diverse range of stakeholders – including, but not limited to, The “transformational” scenario requires two WRCTN personnel. The figure trail managers, iwi, Waikato REDA, council staff, RTOs and central below indicates the approximate focus of effort of the personnel across the government. three tranches. It shows that most of the effort will be directed towards To this end, the success of the WRCTN will also depend on the quality of activity in Tranche 3 (Develop capability and capacity). Administration engagement by, and the contribution from, these stakeholders. includes a range of “non-productive” activity, and provision for annual and sick leave. This section of the Management Case outlines what is needed to achieve success in terms of:
the number of WRCTN personnel and the key capabilities required Tranche 1: Enhance and extend cycle trails (including a position summary of the roles that need to be filled) the indicative level of ongoing effort that trail managers and council and RTO staff will need to contribute to delivering the work programme. Tranche 2: Grow service providers
The approach to identifying capability and capacity need Tranche 3: Develop capability and capacity A cost model has been developed to estimate the cost of the WRCTN for the three scenarios described in the Economic Case. The model uses a “bottom-up” approach to estimate the amount of effort required to undertake each activity across the three tranches, taking into account the nature and Administration
timing of that activity. In aggregate this provides an estimate of the number of FTE personnel required.
We have identified the key capabilities required of these personnel through a Total WRCTN personnel combination of analysing the nature of the projects, looking at comparable roles in other organisations, and drawing on our expertise in organisational design. Two distinct roles are required: a Programme Lead and a Senior Advisor. Table 15 and Table 16 outline the proposed accountabilities for each role.
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Table 15: Role of the Programme Lead
Role Title Reports to Role purpose and responsibilities
Programme Lead, WRCTN The purpose of the position is to implement the strategic direction set by the WRCTN governance and WRCTN governance board deliver results that are valued by WRCTN members.
Key responsibilities include: Build and maintain effective collaborative relationships with key stakeholders and groups from relevant sectors and organisations, for the purpose of achieving WRCTN outcomes Lead and support WRCTN members to shape a culture that: - places strong emphasis on developing a productive region-wide approach and cross-sector relationships - places strong emphasis on identifying and responding to customer/user needs, and resolving critical issues promptly - initiates, supports and implements innovation - anticipates the need for change and adapts effectively to new contexts - uses a solution-focused approach to working with others. Lead strategic region-wide conversations involving internal and external stakeholders to support decision-making on key issues such as funding, land access and council and community engagement. Work proactively with other organisations to ensure their approaches and priorities are aligned with WRCTN’s vision and strategic objectives. Provide feedback on behalf of WRCTN members on specific regional pressures and issues. Determine work programme priorities and ensure that resource investments are optimised and directed to those priorities. Lead significant projects to help cycle trails lift their performance, and grow economic activity in local communities.
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Table 16: Role of the Senior Advisor
Role Title Reports to Role purpose and responsibilities
Senior advisor, Programme The purpose of the position is to lead the delivery of the work programme, including monitoring WRCTN Lead, WRCTN implementation and progress towards goals.
Key responsibilities include: Build and maintain effective collaborative relationships with key stakeholders and groups from relevant sectors and organisations, for the purpose of achieving WRCTN outcomes. Support strategic conversations involving internal and external stakeholders to support decision- making on key issues such as funding, land access and council and community engagement. Lead significant projects to help cycle trails lift their performance, and grow economic activity in local communities. Monitor the ongoing delivery of significant projects. Lead analysis of scenarios, customer analysis and benchmarking. Scan the external environment for information, trends, best practices and innovations. Identify needs for technical and analytical support and develop RFPs in collaboration with stakeholders to meet those needs. Work collaboratively with administrative support to ensure that finance, accommodation and other shared service needs are met. Establish and maintain best practice processes and systems, aligned with the work programme priorities.
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Contribution from other WRCTN members In addition to the two WRCTN personnel, WRCTN members will have an important role to play in the success of the network. Trail managers, council and RTO staff will need to be actively involved in implementing the work It is expected that council and RTO staff would have increased engagement with the WRCTN programme. Predominately around Tranche 2 (Grow service We have attempted to estimate what this level of effort could look like for the providers) and marketing-related activity in Tranche 3 (Develop capability and capacity). purposes of informing decision-making about this business case – however, Councils and RTOs we caution that this assessment is indicative only. Further analysis and Estimated at up to ¼ FTE per council boundary, comprising a mix of council and RTO staff, consultation is required to determine the actual level of stakeholder effort depending on the initiatives being implemented needed in practice to achieve the objectives of this scenario. in the work programme. It is also important to note that the level of activity indicated does not necessarily represent additional effort over and above current workloads. A key tenet of the WRCTN is to co-ordinate existing activity better and leverage a region-wide approach. It is expected that personnel from each cycle trail would have significant involvement with the WRCTN – for example, helping to implement initiatives or using tools and information produced by the WRCTN. Much of the engagement with the WRCTN Trail managers would be focused around Tranche 1 (Enhance and extend trails) and Tranche 3 (Develop capability and capacity). The level of involvement would vary from trail to trail, and over time. Estimated at up to 1/3 of an FTE per cycle trail, depending on the initiatives being implemented in the work programme.
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Further issues to consider As noted earlier in the business case, a transition group would lead the Given the importance of land access, consideration could be given to establishment of the “transformational” scenario. The transition group would federated farmer appointments. need to consider a range of issues. In some instances, the group will need to make decisions early on about how to proceed. In other instances, Appointments would be made to the board consistent with the tenet that decisions may be deferred until WRCTN personnel are on board. Key issues the board is independent and acts in the best interests of the WRCTN. for the transition group to consider are set out below. Stakeholders would appoint members based on their own policies and guidelines. A council or government appointment, for example, would WRCTN governance not necessarily result in an employee of that organisation being appointed to the board. One of the first initiatives in the work programme is to establish governance to set the strategic direction at a region level. Decisions about governance Employment arrangements arrangements would be guided by best practice. Some possible options are outlined below. There are different options for employment arrangements for WRCTN personnel. The governance board could comprise one independent chair, and no more than eight members in total. If possible, there would be an even Stakeholders could “loan” the required two FTE staff to WRCTN (for number of members so the chair would be able to exercise the deciding example, on secondment or as in-kind support). Alternatively, WRCTN could vote. enter into employment arrangements with personnel directly (for example, hiring a contractor or permanent staff member), with flow-on implications for Stakeholder consultation would be required to agree the composition of whether WRCTN is a separate entity or not. the governance board. Table 17 sets out one possible scenario. The WRCTN would enter into contract for services arrangements with one or Table 17: Board representation more of the stakeholders to provide corporate services (that is, accommodation, office supplies and ICT services). Board representation Notes Independent chair Appointed by the board There are subsequent decisions to make about where WRCTN personnel 1 member Appointed by Waikato REDA would be located – taking into account alignment across the region with WRCTN members and external stakeholders. 2 member Appointed by the trail managers 1 member Appointed by DoC, MBIE and NZTA 1 member Appointed by iwi 1 member Appointed by RTOs
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Whether an independent organisation is required Making sure the expected benefits are realised An assessment of the expected benefits is essential to maintain the focus of There is a question about whether the WRCTN should be an independent the work programme and to justify further investment in the WRCTN over organisation. time. Development of a benefits realisation framework is needed to: Establishing an independent entity (such as a charitable trust) has a number confirm how the expected benefits relate to various outputs in each of advantages. Personnel would be clearly accountable for acting in the best tranche and that the planned activity will enable the benefits to be interest of the WRCTN. By contrast, if for example a stakeholder were also achieved the employer, personnel might potentially be seen as favouring the stakeholder-employer over other interests. schedule when benefits will be measured across the life of the work programme, and describe how they will be measured An argument against having a separate entity is the cost of establishing and operating a new organisation for such a small number of personnel, and the inform discussion with stakeholders and funders about whether the perception that this is “just another bureaucracy”. expected benefits have been realised and ongoing investment is warranted. Possible options to leverage existing entities One option is to leverage the Waikato Regional Economic Development Agency (REDA), with WRCTN personnel being employed by REDA. The purpose and vision of REDA is closely aligned with the objectives of the WRCTN, mitigating the risk of stakeholder capture. Furthermore, WRCTN could take advantage of REDA’s resources in terms of the Waikato Story, investment attraction, sector development, Māori economic development, and PGF funding management. The timeframe for establishing REDA is consistent with that for establishing the WRCTN (six to eight months). However, there could be risk that WRCTN personnel are diverted onto broader REDA establishment issues in the short term. Under this option, funding for the WRCTN personnel would still need to be in addition to REDA’s current funding baseline.
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TRANSITION ARRANGEMENTS
Figure 9 summarises the proposed transition arrangements (including governance and delivery) for establishing the “transformational” scenario. Figure 9: Transition arrangements This comprises a small transition team with responsibility for undertaking the bulk of the work necessary to establish the WRCTN, and oversight provided by a transition board. The transition arrangements would be in Governance place until the WRCTN is operational (approximately six–eight months). Representation: Sub-group of the existing WRCTN membership. Key roles: Oversight of key decisions and deliverables; address implementation issues; assurance to WRCTN members and stakeholders that the transition is well managed and well executed.
Delivery Team composition: Part-time project manager, supported by technical expertise and administrative services provided by stakeholders. Key roles: Develop a transition plan to establish WRCTN (including office location and detailed budgets); facilitate discussions with stakeholders to establish WRCTN and agree funding contributions; determine employment arrangements; and manage communications.
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FINANCIAL CASE
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INDICATIVE COST OF THE TRANSFORMATIONAL SCENARIO
work closely with existing WRCTN members to agree funding Approach to estimating the cost arrangements. Until this further analysis has been done, cost estimates presented in the As noted in the Management Case, a cost model has been developed to business case should be treated as indicative only. estimate the cost of the WRCTN for the three scenarios described in the Economic Case, with additional analysis for the preferred scenario – the “transformational” option. Current cost and funding arrangements The model uses a “bottom-up” approach to estimate the amount of effort The current arrangements are estimated to cost approximately $50,000 per required to undertake each activity across the three tranches, taking into year – mainly comprising personnel time, with some cost associated with account the nature and timing of that activity. In aggregate this forms a work WRCTN workshops and progressing initiatives in between the meetings. programme over a 30-year period – although greater emphasis is placed on the first 10 years. Most of this cost is funded by Waikato Regional Council with in-kind support. The cost estimate includes personnel cost and other operating costs needed to deliver the work programme, and includes implementation costs to Estimating the cost of the preferred establish the scenario and achieve a steady-state of operations. way forward Appendix 5 sets out the assumptions used in the cost model.
Timeframe of the financial case The total cost for the preferred scenario over five years from 2019/20 to 2023/24 is approximately $1.580 million. The Financial Case focuses on the first five years of cost of the preferred scenario, to help inform decision-making about whether or not to invest in Figure 10 shows that annual expenditure increases from $0.100 million in the business case proposal. Year 1 (2019/20) to $0.430 million in Year 5 (2023/24), which is considered If the investment is approved, the intention is for a transition group to: to be a steady state year. undertake further cost analysis and develop a detailed budget for the WRCTN
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Figure 10: Indicative cost Recruitment for the two WRCTN personnel occurs in Year 1 and Year 2. A small amount of the work programme begin in these initial years, with most activity underway form Year 3 (once WRCTN personnel are on board). A summary of the cost for each scenario is contained in Appendix 6.
Figure 11: Cost breakdown
Breakdown of preferred scenario cost Figure 11 shows the main categories of cost for the preferred scenario over five years. The cost is grouped into three categories; the largest is personnel, followed by expenditure to implement initiatives in the work programme and “other operating cost” (including accommodation, office
supplies and ICT services). The percentages shown in Year 5 show each cost category as a proportion of the total cost.
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POTENTIAL FUNDING ARRANGEMENTS
A total investment of $1.580 million is sought to fund the WRCTN over five years from 2019/20 to 2023/24 (see Figure 11), to establish the WRCTN and Further consultation required to agree funding achieve a steady state. Beyond the five-year establishment horizon, funding arrangements of $0.430 million per year is needed. If WRCTN members support the recommendations in the business case (see Recommendations, page 107), an early action will be to agree the Possible funders and funding sources necessary funding arrangements. In addition to the Ngā Haerenga Enhancement and Extension Fund, there It is likely that, in the long term, WRCTN members will need to contribute are a range of possible funding options for the WRCTN. These options could include, but are not limited to: funding to at least a portion of the investment cost. In the short term, there is a potential issue with timing. Councils are close to adopting their 2018–2028 funds administered by central government (for example, Provincial LTPs and may have limited ability to contribute funding to the WRCTN over Growth Fund) the next one to three years. funds administered by local government (for example, WRC’s Regional The proposed approach, therefore, is to make an application to the Development Fund) Provincial Growth Fund and regionals funders for a significant proportion of funding contribution from WRCTN members and regional the funding requirements through to 2020/2021 (approximately $0.737 stakeholders33, either as in-kind support or a cash contribution million in total). If successful, this will provide short-term funding and allow stakeholders to advocate to councils to make an increased investment for other donations and grants. the WRCTN in their revised LTP 2021–2031, and engage with other The 50:50 funding criteria that apply to the Ngā Haerenga Enhancement and stakeholders about longer-term funding opportunities. Extension Fund does not necessarily apply to other funding sources (such as the PGF and funds administered by NZTA).
33 For example Trust Waikato.
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What a possible funding scenario could look like Funding from Year 4 onwards This funding scenario is provided for illustrative purposes, to give a sense of From Year 4 onwards, member funding would increase beyond in-kind possible funding arrangements and how this could change over time. support to include a cash contribution. Further analysis and consultation would be needed before any agreement For illustrative purposes, if members funded 33% of the total annual could be reached (not least to ensure that applications to requisite grant WRCTN cost (and other funders provided the remaining 66%), each funders would be successful). member would make an annual contribution of approximately $6,500 per year.34 Funding for first 3 years Under a fully member-funded scenario (that is, if no government or regional The table below shows the total funding contribution for Years 1–3 (not an funds were available), the average annual cash contribution increases to annual amount). approximately $27,000 per member. The contribution by WRCTN members is in-kind support only – no cash contribution is assumed.
Total funding for Years 1–3 Indicative
contribution
Central government fund (for example, PGF) 78% $572,000
Regional-based fund 9% $65,000
WRCTN members in-kind support for corporate 14% $100,000 services (estimated value over 3 years) Total over 3 years 100% $737,000
34 Assumes 14 members would make a cash contribution: 11 councils, WMB and 3 RTOs, less the member providing in-kind support and excluding cycle trails.
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RECOMMENDATIONS
It is recommended that:
1 WRCTN members assess the business case and determine whether they support the implementation of the “transformational” scenario. 2 If there is unanimous agreement by WRCTN members to proceed, members sign a memorandum of understanding that: sets the “go–live” date for the “transformational” scenario identifies the members of the transition governance and delivery team confirms agreement in principle to the proposed funding approach outlined in the Finance Case. 3 The transition group is convened and a project manager appointed. 4 WRCTN members agree a transition plan that sets out the detailed approach for operationalising the “transformational” scenario. Among other things, the plan includes further analysis and decision making on: governance, including identifying the individual chair whether WRCTN is established as an independent entity, or is part of an existing entity (such as Waikato REDA) employment arrangements, including the location of WRCTN personnel provision of administrative support services.
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5 WRCTN members agree a funding plan that identifies: the detailed transition and ongoing budgets how much funding will be requested from government and regional funders the funding contribution from WRCTN members (including in- kind and cash contributions).
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APPENDIX 1: WORKSHOP ATTENDEES
Table 18: Workshop attendees 16 March workshop 17 May workshop Hamilton City Council Hauraki District Council Matamata-Piako District Council Ōtorohanga District Council Taupō District Council Thames-Coromandel District Council South Waikato District Council Waikato District Council Waipā District Council Waitomo District Council Waikato Regional Council Waikato Means Business NZ Transport Agency Hauraki Rail Trail DoC / Timber Trails Te Awa River Rides Waikato River Trails Great Lakes Trail Destination Coromandel Destination Great Lake Taupō Hamilton-Waikato Tourism
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APPENDIX 2: TRAILS
This appendix provides a summary of each cycle trail, including the Travel time from major cities Travel time 1 – 1.5 hours from Auckland, Tauranga and customer base; how the trail is governed, operated and funded; and plans Hamilton for developing the trail in the future. Services Information Trail and services information available on The appendix draws on information from a variety of sources, Haurakirailtrail.co.nz and i-Sites including discussion with trail managers, spreadsheets collated for Bike hire Several bike hire companies, pickup and drop-off at multiple the WRCTN, trail business cases (where available), customer locations survey results, and the NZCT evaluation report.35 Trail guides n/a Transport One full time shuttle company and several taxi services Hauraki Rail Trail providing transport services Food Options at towns along trails, but needs improvement The vision: To be New Zealand's premier Grade One Great Ride by Accommodation Options at towns along trails, but needs improvement providing a high-quality tourism asset that preserves and showcases the Bike specific services available in major towns diverse natural environment, history and culture of the Thames- Mobile coverage Most of the trail Coromandel, Hauraki and Matamata-Piako districts, and that enhances the vibrancy of the small rural communities along the Trail. Current customers Riders per year 2018 estimate: 90,000 customers – 5th highest of 22 Great Rides Table 19: Hauraki Rail Trail details Forecast customer demand 15% annual growth 2018 YTD over 2017 with no new development Trail details Trail use Day and multi-day experiences, some commuter use Total trail length 161 kms Grade 100% Grade 1 Accommodates e-bikes Average time to complete 3 – 4 days or less
35 MBIE: Ngā Haerenga NZ Cycle Trail Evaluation Report, 2016.
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Domestic customers 85% of customers are domestic Economic contribution 60+ average age group, and young families Total economic contribution $8,294,281 million per annum Day rides popular due to nature of trail and many start/ finish points Breakdown of domestic and Domestic single day $2,399 million, domestic multiday internal visitor contribution $5.273 million, international single day $0.279 million, Repeat riders use trail 2–3 times per year international multiday $0.342 million 20% from Auckland, 70% from Waikato, 10% from Bay of Total $8.294 million Plenty International customers 15% of customers are international Average economic activity Domestic single day $67 per visitor generated per visit 30% international riders riding multi-day with Australians Domestic multiday $134 per visitor being the main international market International multiday $235 per visitor It is expected the international multi day ride market will grow 10 year development plan (indicative only) Customer satisfaction 46% said the trail met expectations, 52% exceeded Completion of existing Te Aroha to Matamata (37 km) – to be completed June Average spend per trip per $174 – 3rd highest out of Waikato cycle trails assets 2019 customer Kopu to Pukorokoro-Miranda Governance and management arrangements Development of trail heads at major townships Vegetation Control, landscape and ecological restoration Governance Three iwi and a council appointed Trustee from each of the planning – multi-agency strategy in development for three councils greenway Management Hauraki Rail Trail Charitable Trust, 1 trail manger FTE Karangahake Gorge Development Other key stakeholders Councils, DOC and Iwi. Side Trails will be developed overtime (may be constructed to a Grade 2-3 equivalent) Marketing and promotion Hauraki Rail Trail Charitable Trust: Safety improvements Cattle stops Trail maintenance Contracted to Hauraki District Council Surface improvements Asset holder Hauraki District Council Bridge approaches Land ownership Hauraki, Matamata-Piako and Thames-Coromandel District Road/trail interface Councils and iwi Other investment Planning Trail connectivity and linkages (locally) Funding and costs Regional economic development collaboration Annual funding $750,000 cash (no in-kind support) Cost of investment over 10 $17 million, $6.8 million funding secured years Funding contribution by key Councils underwrite Trust strategic costs 33% each and funders maintenance costs on a pro-rata basis (based on length of Expected impact of 30,000 additional riders track) development plan over ten years Annual operating cost $750,000 per annum Payback period 5 years
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Trail use Mainly part-day, can do full trail over two days Te Awa River Ride 50% cyclists, 50% walkers/ runners Heavy commuter use travelling to and from school and work The vision: Celebrate the Waikato River by linking community, culture and ecology through active experiences. Domestic customers 90% of customers are domestic Wide age group – anywhere up 80+, Day rides and walks popular due to trail's proximity to major Table 20: Te Awa River Ride details cities. 5% from Auckland, 90% from Waikato, 5% from Bay of Trail details Plenty. Total trail length 65 kms International customers Grade 100% Grade 1 Customer satisfaction 75% said the trail met expectations, 25% exceeded Accommodates e-bikes Average spend per trip per $20 – 5th highest out of Waikato cycle trails Average time to complete Part day, can do over 2 days customer Travel time from major cities Travel time 1.5 hours from Auckland. Located in Hamilton Governance and management arrangements and Cambridge Governance 6 independent trustees Services Management 1 general manager FTE and 1 project manager FTE Information Trail and services information available https://www.te- Other key stakeholders awa.org.nz/ and i-Sites Marketing and promotion Bike hire Avantidrome Trail maintenance Third party contractor Trail guides Asset holder Transport Shuttle company providing transport services Land ownership Food Limited options in Ngaruawahia. Café in Karapiro. Options in Cambridge and Hamilton Funding and costs Accommodation Options in Cambridge and Hamilton Annual funding Mobile coverage Yes Funding contribution by key funders Current customers Annual operating cost Riders per year 418,661 including daily commuters and walkers and runners Forecast customer demand with no new development
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Waikato River Trails Food Options at Arapuni, Mangakino and Whakamaru. Remoteness means you must be reasonably self-sufficient. Limited opportunities to source water. Shuttles available to The vision: To sustainably create and manage a world-class cycle trail meet riders at set places with food. that connects visitors to New Zealand’s longest river, the mighty Waikato Accommodation Options at Arapuni, Mangakino and Whakamaru. River. Leveraging off the central location of the trail to attract both Accommodation for second day requires transport to domestic and international visitors and to grow visitation and economic Pūtāruru or nearby towns. benefits for the local community. Shuttles available to meet riders at set places to take riders to accommodation off the trail. Mobile coverage Outside of Arapuni, Mangakino and Whakamaru, there are Table 21: Waikato River Trail details areas where coverage is patchy Trail details Current customers Total trail length 105 km Riders per year 35,000 customers (includes riders and walkers) – 5th highest of 22 Great Rides Grade Grade 2 to Grade 4 Forecast customer demand 10% annual growth target Surface Mostly off-road gravel path with some sections of forestry with no new development road and sealed road. Trail use Mostly single day experiences Accommodates e-bikes Yes Domestic customers 97% of customers are domestic Average time to complete 3 – 4 days for full trail, or 2-3 hours for short sections. 40+ age group Travel time from major cities Travel time 40 mins from Hamilton, 1 hour from Tauranga, Day rides most popular due to trail's proximity to major cities. and 2 hours from Auckland. Riders bring their own bikes. 10% from Auckland, 75% from Waikato, 10% from Bay of Services Plenty, 5% from rest of North Island Information Trail and services information available on www.waikatorivertrails.co.nz, i-Sites, and businesses close International customers No data available to trail (in Cambridge, Pūtāruru and Tokoroa). Customer satisfaction 78% said the trail met expectations, 22% exceeded Bike hire 5 bike hire companies, pickup and drop-off at multiple Average spend per trip per $116 – 3rd highest out of Waikato cycle trails locations. All operating under capacity. Some providers offer customer additional services eg kayaking, sightseeing and transport. Governance and management arrangements Trail guides No guides (no demand at present to sustain service, possible opportunity to focus on interpretation as part of a Governance Trust formed in 2006. 7 Trustees plus 5 co-opted Trustees wider service offering). from stakeholder groups. Transport 4 shuttle companies providing transport services. Management 3.4 FTE personnel Other key stakeholders South Waikato District Council, Mercury
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Marketing and promotion Trust manages marketing, Web, social media, 20,000 Rotorua to Waikato River Trails connection via Mamaku brochures annually, events, expos and Pūtāruru Mangakino to Timber Trail Connection Trail maintenance WRT Matamata to Waikato River Trails connection Asset holder Trust owns plant for trail maintenance and 3 vehicles Southern end of Waikato River Trails to Orakai Korako Land ownership extension.
Funding and costs Safety improvements Surface and width improvements Eliminating steps and steep gradient Annual funding $550,000 cash Reduce on road sections $90,000 in-kind support Other investment Funding contribution by key Principal Sponsor South Waikato District Council. Major funders Sponsor Mercury. Other contributors include Waikato River Cost of investment over 10 To be established via separate business case development Authority, Taupō District Council, Waikato Catchment years Ecological Enhancement Trust and numerous others. Expected impact of Annual operating cost $550,000 per annum development plan over ten years Economic contribution Payback period Total economic contribution $1.1 – $2.2 million per annum Breakdown of domestic and 80% generated from domestic customers, 20% international internal visitor contribution customers Domestic spend 8th highest of 22 Great Rides, international Timber Trail revenue 11th highest The vision: A high quality backcountry cycling journey across rich Average economic activity $45 revenue per visit – ranked 11th out of 22 Great Rides generated per visit (2nd quartile) historical forest landscapes.
10 year development plan (indicative only) Completion of existing New trail to eliminate steps at Tumai stream/Waipapa Table 22: Timber Trail details assets Dam. Trail details Widening and surfacing of Trail (Lake Whakamaru) Total trail length 85 km (plus 14km if staying at Black Fern Lodge) Off-road trail development Waotu Quarry to Jones Landing (Lake Arapuni) Grade Grade 2 to Grade 3 Off road trail develop Mangakino to Maraetai Dam ( Lake Arapuni) Surface Mostly volcanic ash, all off road Alternative to road side trail (Lake Karapiro) Accommodates e-bikes Mountain bike best, e-bike ridable in parts. Waikato River Trail to Te Awa Trail connection Average time to complete 2 days
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Travel time from major cities Travel time 3.5 hours from Auckland, 1.75 hours from Governance Timber Trail Society being established Hamilton, 5.5 hours from Wellington Management Services Other key stakeholders DOC, councils, and iwi and hapu Information Trail and services information available on www.timbertrail.com, DOC pamphlet available at Te Kuiti Marketing and promotion Funded by Ruapehu and Waitomo district councils through a and Pureora Field Base co-ordinator Bike hire 4 bike hire companies, pickup and drop-off at multiple Trail maintenance Volunteer group locations Asset holder Trail guides Land ownership Transport 4 shuttle companies providing transport services Funding and costs Food Nearest shops Benneydale (17 km away) and Mangakino Annual funding (55 km away) Funding contribution by key Accommodation Pureora (2 options: cabins and campsites, and Pa Harakeke funders chalets), Piropiro (halfway point: lodge and camping), Waimiha (Black Fern Lodge, Timber Trail Farm Stay) Annual operating cost Ongarue (camping/flash-packers) Accommodation options nearby in Te Kuiti, Benneydale, and Taumarunui. 10 year development plan (indicative only) Mobile coverage No coverage on most of trail. Personal locator beacon recommended. Completion of existing Upgrade track construction or re-route track in sections assets made un-rideable in poor conditions Current customers Improve track construction in areas affected by wet Riders per year 82,000 customers – 5th highest of 22 Great Rides weather Forecast customer demand Estimated to be 20% annual growth Maintenance of track to improve surface condition. Add with no new development sign names for shelters, view points and bridges to improve way-finding and safety Trail use Day and multi-day experiences Improved access to Mt Pureora summit (Toitoi) Domestic customers 15% from Auckland, 65% from Waikato, 10% from Bay of Pureora hub: create a clear beginning (shelter, Plenty, 10% from rest of North Island interpretation and critical information panels) International customers Piropiro central hub: DOC project to upgrade facilities at the campground to a standard campground and enable Customer satisfaction 51% said the trail met expectations, 49% exceeded DOC to develop a revenue stream. Average spend per trip per $314 – highest out of Waikato cycle trails Ongarue hub: The end of the trail will be extended to the customer Ongarue Hall where a concession facility will be developed, alongside local amenities. Governance and management arrangements
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Safety improvements Surface improvements Information Trail and services information available on Bridges www.biketaupo.org.nz and i-Sites Viewpoints Bike hire 9 bike hire companies Other investment DOC has several capital projects in the pipeline to Trail guides Yes – 2 guides improve infrastructure for the trail – toilets, key access roads and campground. Transport 3 shuttle companies providing transport services Cost of investment over 10 Food Options at Kinloch and Taupō years Accommodation Options at Kinloch and Taupō Expected impact of Mobile coverage Intermittent development plan over ten years Current customers Payback period Riders per year 60,000 total users and 220,000–250,000 for the rest of the Taupō area
Forecast customer demand 5% estimate with no new development Great Lake Trail Trail use Predominantly part and full-day experiences Domestic customers 50% of domestic visitors from out-of-region The vision: Have a world-renowned trail that is sustainable. Age group varies, 8–80 years Day rides popular due to trail's proximity to major cities. Table 23: Great Lake Trail details International customers 10% of customers are international visitors, with majority of Trail details those visitors travelling from Australia Total trail length 75 kms Customer satisfaction 46% said the trail met expectations, 52% exceeded Grade Grade 3 Average spend per trip per $286 – 2nd highest out of Waikato cycle trails customer Surface Pumice-based soil Governance and management arrangements Accommodates e-bikes Yes Governance Committee Average time to complete 2 days for full trail (with boat connections), or 1-3 hours for Management staff 2 part-time volunteer management staff short sections Operations staff 2 trail maintenance FTE; 1 administrative FTE (tag system Travel time from major cities Travel time 3.5 hours from Auckland, 5 hours from and funding applications); 1 volunteer co-ordinator FTE Wellington Other key stakeholders Services Marketing and promotion
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Trail maintenance Paid trail personnel Asset holder Trust assets $3 million . Land ownership Mainly DOC, with 3 farm easements
Funding and costs Annual funding $40,000 cash per annum $20,000 in-kind support Funding contribution by key funders Annual operating cost Approximately $60,000 per annum
10 year development plan (indicative only) Completion of existing Resolve existing WOF issues assets Build gully track system in Craters Rebuild after logging operations Improving existing assets Safety improvements Track plus signage Other investment Cost of investment over 10 $1+ million over ten years years Expected impact of Unknown development plan over ten years Payback period
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APPENDIX 3: CURRENT TRAILS AND PROPOSED EXTENSIONS
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APPENDIX 4: INVESTMENT OBJECTIVES – WHAT DOES SUCCESS LOOK LIKE?
The business case specifies a set of investment objectives that set out the desired outcomes for the proposed investment – what success looks like. The investment objectives have been developed using an inclusive approach, to allow key stakeholders to engage with, challenge and shape the objectives. The objectives are SMART (specific, measurable, achievable, relevant, and time-bound) to help facilitate the generation and assessment of potential options and to provide the basis for determining whether the investment is successful.
Table 24: Investment objectives Investment objective Measures The Waikato region’s cycle trails deliver a Visitor satisfaction levels are high and visitor expectations are met consistently high-quality recreational Cycle trails maintain a consistent grade and quality experience to the community
The cycle trails increase economic activity in International and domestic visitor numbers and length of stay increase local communities Visitor spend in local communities increases as a result of the cycle trails
Cycle trails promote healthy lifestyles Local use increases Set value of health benefit per kilometre36
36 Based on NZTA research and assumption for displacement.
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APPENDIX 5: COST AND BENEFIT ASSUMPTIONS
The key assumptions used to estimate the cost and benefits of the Summary of assumptions scenarios are set out below. They have been discussed and tested with WRCTN members through the development of this business case. The remainder of the appendix describes the assumptions for: visitor numbers, spend and length of stay What the assumptions are used for future capital investment to develop the cycle trails The assumptions described in the appendix are used in the: cost of the WRCTN. Cost Benefit Analysis (CBA) model presented in the Economic Case. The CBA model is based on the approach for assessing Great Rides Visitor numbers, spend and length of stay submissions for NZCT funding. The CBA model quantifies the The CBA is sensitive to visitor assumptions, in particular the number of monetary value of the benefits associated with increased numbers of visitors, the type of visitor (eg domestic or international), visitors’ average visitors to the cycle trails, spending more per visit and staying for daily spend and length of stay. longer. The model distinguishes between different types of visitors (international, out-of-region and local) and whether they visit the cycle The visitor assumptions are based on the best information available, trails for a single day or over multiple days. however there is limited data to draw on from either international or New Zealand sources. Assumptions about visitor numbers, spend and length of Financial Case to describe the cost of the WRCTN. A purpose built stay are conservative so as to not overstate the expected benefits. cost model estimates the cost of the WRCTN under each of the three scenarios. The cost estimate includes personnel cost, operating cost We have used intervention logic to test whether the WRCTN’s activities to deliver the work programme, and expenditure for accommodation, would deliver the expected benefits described in the business case. This office supplies and ICT services. provides a basis to estimate an approximate “order of magnitude” impact on visitors and compare the different scenarios. Level of certainty about the assumptions Error! Reference source not found. summarises the visitor assumptions and supporting rationale. It is important to note there is a degree of uncertainty about a number of assumptions used in the business case, and a number of decisions still to be made will influence these assumptions.
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Table 25: Visitor assumptions TRANSFORMATIONAL Assumptions CURRENT STATE (2018) BAU SCENARIO INCREMENTAL SCENARIO SCENARIO 330,000 total visitors per annum 1.5% annual average increase in 2.0% annual average increase in 2.5% annual average increase in across entire cycle trail network. visitor numbers. visitor numbers. visitor numbers. Based on survey data and assessment Additional 60,000 visitors per annum Additional 90,000 visitors per annum Additional 115,000 visitors per annum by trail managers. to Waikato cycle trail network by 2030. to Waikato cycle trail network by 2030. to Waikato cycle trail network by 2030. Equal to 35 additional visitors per day Equal to 50 additional visitors per day Equal to 65 additional visitors per day per trail. per trail. per trail. Small increase in visitor numbers due Increase in visitor numbers due to All planned enhancement activity and to trail enhancement at high priority majority of planned enhancement trail extensions over a 10 year horizon Visitor numbers areas, but constrained growth due to activity occurring to shift existing cycle are carried out. Significant challenges remaining to achieve a trails from “good to great”. development results in largest cycle consistent level of quality across the Some constraints on local funding trail network compared to other asset. share limit future trail investment. scenarios, with assets maintained to a Total cycle trail investment over 10 higher level of quality. years is much less than what is Key infrastructure improvements currently required, limited by local further enhance network (eg wharf for funding share and capability and ferry transport). capacity constraints. Approximately 75% of total visitors are No change to current state over 10 Bigger increase in number of Increase in visitors, including from Waikato region, 20% of visitors year period. international visitors and out-of-region international and out-of-region visitors are from “out of region”, and the visits on single day trips compared to attracted by greater marketing and remaining 5% of visitors are the “BAU” scenario, but no further promotional activity. Visitor type international visitors. increase to international and out-of- Based on an assessment of cycle trail region multi-day visitor numbers. survey data, NZCT data and observations made at trails by trail managers. Approximately 15% of total cycle trail No change to current state over 10 Similar proportion of multiday visitors Similar proportion of multiday visitors visitors are multiday visitors. The vast year period. as per current state, but an increase in as per current state, but an increase in majority of multiday visitors stay for No/ limited additional accommodation overall visitor numbers results in an overall visitor numbers results in a one night only. capacity. increase in number of multiday greater number of multiday visitors. Current state assumptions based on visitors. Additional accommodation capacity assessment of survey data and Increasing proportion of multi-day and improved accommodation options Length of stay information provided by trail visitors stay more than one night, but result in more multiday visitors, and a managers. continue to be constrained by greater proportion of those visitors Assumptions about length of stay in accommodation options. stay longer than one night. scenarios is based on intervention By 2030, approximately 30% of multi- By 2030, approximately 50% of logic analysis and discussion with trail day visitors stay for two nights, with multiday visitors stay for one night, managers. the remaining staying for a single 35% for two nights and 15% stay for night. three nights.
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TRANSFORMATIONAL Assumptions CURRENT STATE (2018) BAU SCENARIO INCREMENTAL SCENARIO SCENARIO $215 is the weighted average daily Average daily spend increases from Average daily spend increases from Average daily spend increases from spend across all Waikato cycle trails. $215 to $250 by 2030. $215 to $260 by 2030. $215 to $330 by 2030. Based on average daily spend Small year-on-year increase in Cycle trail activity attracts a number of Combination of factors: Increase in calculated for each cycle trail using average daily spend of visitors. new businesses into local international visitors; more multi-day survey data. The weighted average for Some new businesses are established communities, but majority of visitors; greater proportion of multiday all Waikato cycle trails was calculated to service the cycle trails but not all investment is incremental and limited visitors staying more than one night; using number of cycle trail visitors. survive. No “big-ticket” investment “big-ticket’ investment (eg new and new and improved occurs to encourage additional visitor accommodation) occurs. accommodation and food and spend. beverage options. Average daily Some large investment in local spend communities including new accommodation and upgrades to key community infrastructure. Average daily spend benchmarked against other tourist destinations to “reality check” assumptions. As a comparison, the top-end daily spend is in Queenstown (current international visitor daily spend greater than $500).
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Future capital investment to develop the cycle trails Cost of the WRCTN The CBA considers future investment in the cycle trails under each The cost of the WRCTN includes personnel cost, operating cost to deliver scenario (using a “starting point” investment of $23 million). the work programme, and expenditure for accommodation, office supplies and ICT services. This investment assumption represents the capital expenditure for cycle trail enhancement and extensions over the next 10 years. It is based on a Personnel cost: The cost model estimates the total personnel effort bottom-up estimate of 10-year funding needs by each cycle trail required to deliver each line item in the work programme, expressed (summarised in Appendix 3), and agreed with the WRCTN. as a Full Time Equivalent (FTE) person. 20% was added to this amount to provide for administrative activities and for annual and sick The level of future capital investment is varied from the “starting point” for leave. The annual salary assumption was $140,000 for the first FTE each scenario, as follows. role and $90,000 for the second FTE role. “BAU” scenario assumes future trail investment of $19.5 million up Cost to deliver the work programme: Based on an assessment of the until 2030. Investment is below the “starting point” due to significant work programme to identify additional operating cost requirements, local funding share constraints. including for: regional economic development advice, developing best “Incremental” scenario assumes future trail investment of $23.0 million practice, community events and promotion, and visitor insight. up until 2030 (ie the current amount identified by cycle trails). Greater Expenditure for accommodation, office supplies and ICT services: access to funding compared to the “BAU” scenario, but some Estimated at $27,500 per FTE per year. constraints on local funding share remain. The cost model assumed stakeholders would provide accommodation and “Transformational” scenario assumes future trail investment of $31.0 shared services for the WRCTN personnel as in-kind support. All other million up until 2030. Significant effort is directed toward co-ordinating costs (such as personnel and expenditure to deliver the work programme) funders and maximising central government and regional funding would be funded by cash contributions. opportunities. The establishment of the WRCTN would incur one-off transition costs in It is important to note that a key future role of the WRCTN will be to Year 1. These costs included a transition group (see the Management develop a fundable long term cycle trail plan, building on the work already Case, at page 99). done by the cycle trails. An outcome of this work might be that the 10-year funding need is different from the amount used in the CBA, either at an aggregate level or at an individual cycle trail level.
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APPENDIX 6: INDICATIVE COST OF THE SCENARIOS
The cost forecast for five years from 2018/19 to 2023/24 is set out below for each scenario. Year 5 (2023/24) is considered to be a steady state and reflects the level of expected cost for Year 6 onwards. The cost shown in the graphs is grouped into three categories: personnel; expenditure to implement initiatives in the work programme; and operating cost for accommodation, office supplies, transport and ICT services. Year 5 shows each cost category as a proportion of the total forecast cost.
BAU SCENARIO INCREMENTAL SCENARIO TRANSFORMATIONAL SCENARIO
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Table 18: Workshop attendees 109 APPENDIX 7: LIST OF Table 19: Hauraki Rail Trail details 110 TABLES AND FIGURES Table 20: Te Awa River Ride details 112 Table 21: Waikato River Trail details 113 Table 22: Timber Trail details 114 TABLES Table 23: Great Lake Trail details 116 Table 24: Investment objectives 119 Table 1: Key stakeholder groups 34 Table 25: Visitor assumptions 121 Table 2: Customer feedback on trails and infrastructure 38
Table 3: Customer feedback on services 42 Table 4: Key challenges facing individual trails 43 Table 5: Key council strategies 58 FIGURES Table 6: Risks of investment 59 Figure 1: Geographic scope 17 Table 7: Constraints of investment in the WRCTN 59 Figure 2: New Zealand’s Great Rides 22 Table 8: Dependencies of investment in the WRCTN 59 Figure 3 Current trails in the Waikato region 23 Table 9: Summary of the three scenarios 63 Figure 4: Key challenges 36 Table 10: Summary of activity in the three scenarios 65 Figure 5: Intervention Logic Framework for the Great Rides 46 Table 11: Regional focus increases trail demand and economic activity in local communities 81 Figure 6: Three tranches 51 Table 12: Greater value for money from existing investment 83 Figure 7: Cumulative NPV 87 Table 13: Future investment into the cycle trails 85 Figure 8: Timing of work programme 94 Table 14: Total benefits 88 Figure 9: Transition arrangements 101 Table 15: Role of the Programme Lead 96 Figure 10: Indicative cost 104 Table 16: Role of the Senior Advisor 97 Figure 11: Cost breakdown 104
Table 17: Board representation 99
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GROWING THE ECONOMIC BENEFITS OF INCREASED VISITORS ACROSS THE REGION BY LEVERAGING NEW AND EXISTING CYCLE TRAILS INVESTMENT
WAIKATO REGION CYCLE TRAILS NETWORK
1 EDS Agenda 2.10.18 Page206 THE STORY WAIKATO REGION Key benefits of a regional CYCLE TRAILS approach to establishing a formal cycle trail network in the AUCKLAND SO FAR Waikato The Waikato region supports and services four Great Rides: REGIONAL FOCUS INCREASES TRAIL DEMAND AND Hauraki Rail Trail, Timber Trail, Waikato River Trails and the ECONOMIC ACTIVITY IN LOCAL COMMUNITIES Great Lakes Trail. Together with Te Awa River Ride, these Hauraki More international, out of region and local visitors stay longer and 1 Rail Trail trails are the focus of this programme business case. spend more during their visit, leading to greater regional economic Thames Thames Te Aroha Cycle trails attract local, national and international visitors who activity. Kopu Wairongomai Valley Te Awa Matatoki Te Aroha West contribute to the regional economy through local spending. Cycle trail 2 River Ride Hikutaia Gordon development across the Waikato region has accelerated in the past GREATER VALUE FROM MONEY Paeroa Okuia Ngāruawāhia 1 River Mackay town Matamata five years. However, despite committed and passionate investors and ON EXISTING INVESTMENT Horotiu ato aik Karangahake Kaiaua Hamilton W partners, completion of existing trails and the development of new trails Paeroa Waihi Waikino Miranda Cycle trails and communities develop capability and capacity to Tamahere Waihi Waitakaruru remain incremental and are limited by funding and local capacity. Cambridge offer a wider variety of attractions and services, improve the visitor Waihi Beach Kopu Karāpiro This business case considers all aspects of a cycle trail, from the physical experience and broaden the potential market. Tirohia Mangaiti asset, local business and community involvement, to the capability and Te Aroha capacity needed to deliver a great customer experience and attract new FUTURE INVESTMENT INTO THE CYCLE TRAILS and returning visitors – both cyclists and other users. OPTIMISES REGIONAL BENEFITS Waikato Ngāruawāhia HAMILTON Future investment is aligned to regional outcomes, enabling access 3 River Trails Matamata- Arapuni Whakamaru Hinuera- to a broader range of funding opportunities. Decisions about trail Raglan Putāruru Ātiamuri 9 Horahora link investment are informed by how to maximise demand across the Tirau Tokoroa The Waikato Regional Cycle Trails region. Pukeatua Whakamaru Cambridge Matamata Hinuera Waotu Mangakino 2 Piarere Network (WRCTN) members Waipapa Waihaha 9 Horahora Mangakino Tihoi Te Awamutu a Kāwhia o Trail trusts Hauraki Rail Trail, Timber Trail, Waikato River Trails, Great r ROTORUA a Lakes Trail, Te Awa River Ride and their key funding partners, territorial r a W The Timber a authorities, Waikato Regional Council, Waikato Means Business, New e i k t
a
4 t Zealand Transport Agency, Hamilton & Waikato Tourism, Destination Trail o
R
i Go Thermal
Coromandel and Destination Great Lake Taupō. Te Kūiti Ōtorohanga v e
Benneydale r Tokoroa by Bike - Ongarue 3 Ōtorohanga Te Kūiti 8 Te Ara Ahi Mangakino Rotorua Tumunui Key challenges facing the Waimangu Waikato River,, Wai-o-tapu region’s cycle trails Timber, and 5 Waikite Great Lake TAUPO 5 — LINKS trails 6 Waikato River Achieving the desired levels of trail quality and Mōkau 3 Trails - EXTENSIONS grade consistency 4 Orakei Korako Lake Legend Taup Maintaining sufficient stakeholder support to Exisiting Planned Great Lake operate and enhance the trails 6 Trail Due for completion Proposed 7 Kinloch Turangi Taupō Onroad O road Achieving a sustainable financial model Boat transfer 7 Taupo-Turangi Sufficient service providers and services to meet proposed Tauranga-Taupō customer demand and help grow trail use Taupō Waitahanui Te Rangiita Hatepe Motuoapa Motutere Tūrangi
2 - ( ) 3 EDS Agenda 2.10.18 Page207
START WHAT IS MEANT BY CYCLE TRAILS REGIONAL HERE TOURISM A CYCLE TRAIL NETWORK OFFICES In this business case, the word “network” is used to describe how separate trails CAPACITY AND within the Waikato region operate together for the benefit of each other and the CAPABILITY region through physical cycle trail assets, people capacity and capability and local community and business services.
R EXP CENTRAL E E Regional governance to set M R AND LOCAL O I strategic direction. T E GOVERNMENT S N Identifying extensions and activities U C that will achieve the greatest C E benefit from a regional perspective. Sharing resources and best practice to maintain and develop the trails.
Local transfers to and within a community for international s visitors and those In r t o MARKETING TRAILS not driving directly e it to a destination. r s AND SERVICES AS A na vi t c PACKAGE DESIGNED ion sti CYCLE al and dome LOCAL TO MAXIMISE USE SUSTAINABILITY COMMUNITY TRAILS AND BUSINESS
SIGNAGE & Amenities at trailheads and along trails to create a positive INTERPRETATION INFRASTRUCTURE Accommodation providers and experience, including toilets cafes and restaurants offer cyclist- and water, wayfinding to trails friendly services such as secure from town centres, parking, trail EVENTS TO ATTRACT bike storage, repair stands and information and interpretation. PACKAGE VISITORS AND GROW work areas, a place to wash bikes OPERATORS Trail product enhancement through ENGAGEMENT and laundry facilities. adjacent bike skills parks, facilities AND TOUR Bike hire, purchase and servicing. such as bike wash areas, air hoses, OPERATORS secure storage and bike racks.
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What is required to achieve the trails network over 30 years, and what will investment achieve? INTERVENTIONS BENEFITS
• Achieve desired grade consistency and quality to deliver a safe More international, out of CREATING JOBS THROUGH THE DESIGN, CONSTRUCTION and consistent experience. region and local visitors stay AND MAINTENANCE OF THE REGION’S CYCLE TRAILS TRANCHE 1: • Agree a region-wide vision for the Waikato’s cycle trails, longer and spend more during NETWORK. ENHANCE AND EXTEND TRAILS including physical network connections. their visit.
CREATING A HIGH-QUALITY TOURISM ASSET: • Identify business potential in local communities. Cycle trails and • ENHANCING NEW ZEALAND’S COMPETITIVENESS AS • Promote opportunities to invest in local cycle trail services. communities deliver A TOURISM DESTINATION TRANCHE 2: • Help service providers get established and support them to greater value for money on deliver to an agreed customer experience. existing investment. • PROVIDING ONGOING EMPLOYMENT AND ECONOMIC GROW SERVICE PROVIDERS • Grow local community support and engagement. DEVELOPMENT OPPORTUNITIES FOR REGIONAL ECONOMIES.
• Deepen understanding of customer experience and forecast market demand. Future investment into the DELIVERING OTHER BENEFITS: RECREATIONAL, • Establish a region-wide approach to governance. cycle trails optimises regional HEALTH, CULTURAL AND ENVIRONMENTAL. benefits. TRANCHE 3: • Enable effective stakeholder relationships. DEVELOP CAPABILITY AND • Support quality marketing and product development. CAPACITY • Leverage opportunities to achieve sustainable funding. • Leverage opportunities to achieve sustainable trail governance and operations.
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VISITORS
SCENARIOS .
. ASSESSMENT . .
SELECTING THE PREFERRED PROGRAMME Millions . . Scenarios were developed in close consultation with WRCTN using . an iterative process of scenario assessment and cost benefit analysis. TRANSFORMATIONAL IMPACT OF BENEFITS UNDER Analysis is over a 10-year time frame and is conservative. . SCENARIO: THE TRANSFORMATIONAL Visitor impact Health Consumer surplus The WRCTN members have determined the practical implications of each scenario below for visitors riding cycle trails and the community, PREFERRED PROGRAMME SCENARIO and to analyse how the network would benefit local communities and Value for money of existing and future investment is optimised through Cycle trails increase economic activity in local communities BREAKDOWN OF QUANTIFIED the Waikato region. developing capability and capacity – meaning resources and expertise WRCTN will work closely with trail trusts, councils, regional tourism BENEFITS (OVER 10 YEARS) Business as usual (BAU) are freed up to focus on delivering a great cycle trail experience and offices (RTOs) and Waikato Regional Economic Development Agency Represents the status quo option – WRCTN now. Fewer opportunities growing economic activity in local communities. (REDA) to promote business opportunities in local communities and will be taken, and at a slower pace. Cycle trails continue to operate support the long term sustainability of new businesses. There is a drive This scenario costs more, but is fully fundable and achieves the highest relatively independently of each other, with unrealised regional visitor to attract big ticket investment into the smaller towns (such as new benefit cost ratio (BCR), 1.5. The transformational scenario returns the growth and economic activity. accommodation) to achieve higher visitor spend and attract more non- largest net present value (NPV) ($6.8 million) with the earliest break cycling visitors. Incremental even (2026). Falls between the BAU and transformational scenarios. Proactive focus on schools and communities to leverage the cycle trails . for education purposes and establish community events, which in turn Transformational BCR: . attracts visitors and increases demand. Delivers greater benefits, with more emphasis on engaging with and . The physical network is expanded to maximise regional economic
influencing stakeholders. Activities across the three tranches are more per day trail visitors Additional development, particularly in smaller communities where the cycle trails complex. . (thousands) network to visitors Additional BCR: . will have a significant impact on economic activity.
. BCR: . Cycle trails are good for our people and our environment Millions -. More local visitors to trails and greater focus on trails sharing best International Out of region practice around biodiversity and sustainability achieve better outcomes TRANSFOR- Local Average additional daily visitor per trail BAU INCREMENTAL -. MATIONAL for the environment. Visitors are able to learn about the Waikato’s SCENARIO SCENARIO SCENARIO history, and experience its natural beauty and cultural heritage. -. Ability to deliver
a comparative ADDITIONAL JOBS Low Low-moderate Moderate-high advantage for IN THE REGION Waikato BAU Incremental Transformational Increased visitors, length of stay and Low Moderate High Cumulative NPV and BCR for each scenario average daily spend
Regional Compared to all other scenarios: economic (annual) FTEs Low Low-moderate High development • More international and out of region visitors staying longer and benefits spending more. • Greatest amount of sustainable economic activity and job creation Financial cost of Low Low-moderate Moderate scenario in local communities. • Some large investment in local communities, including new Scenario accommodation and upgrades to key community infrastructure, constraints Construction jobs Tourism jobs (ongoing) (local funding and a significant increase in average daily spend. High Moderate Low share and • Significant development results in largest cycle trail network, with capacity and Assumption: by year 10 capability) assets maintained to a higher standard. • average daily spend increases from $215 to $330 • approximately 50 per cent of multiday visitors stay for one night, 35 per cent for two nights and the remaining proportion (15 per cent) stay for three nights.
8 9 EDS Agenda 2.10.18 Page210 IMPLEMENTATION POTENTIAL FUNDING ARRANGEMENTS TRANSITION ARRANGEMENTS Alongside the Ngā Haerenga Enhancement and Extension and Managing The business case proposes a small transition team to undertake the AND NEXT STEPS Great Rides funds, possible funding options for WRCTN include, but are bulk of the work necessary to establish the cycle trail network, with not limited to: oversight provided by a transition board. The transition arrangements INDICATIVE WORK PROGRAMME would be in place until WRCTN is operational (approximately six to eight KEY • funds administered by central government (e.g. the Provincial months) High level Growth Fund) of eort On going activity • funds administered by regional/local government (e.g. Waikato Regional Council’s Regional Development Fund)
ACTIVITIES AND LEVEL OF EFFORT • funding contributions from WRCTN members and regional stakeholders, either as in-kind support or a cash contribution YEARS YEARS YEARS YEARS YEARS YEARS • other donations and grants.
TRANCHE : ENHANCE AND EXTEND CYCLE TRAILS Further consultation required to agree funding arrangements Achieve desired grade consistency and quality to deliver a safe and consistent experience If WRCTN members support the business case, an early action will be Agree a region-wide vision for the Waikato’s cycle trails, including physical network connections to agree on funding arrangements. In the long term, WRCTN members will probably need to contribute at least a portion of the investment TRANCHE : GROW SERVICE PROVIDERS cost. In the short term, there is a potential issue with timing. Councils
Identify business potential in local communities have adopted their 2018–2028 LTPs and may have limited ability to contribute funding WRCTN over the next three years. Promote opportunities to invest in local cycle trail services
Help service providers get established and support them to deliver to an agreed customer experience The proposed approach is to apply to the Provincial Growth Fund and regional funders for a significant proportion of the funding requirements Grow local community support and engagement through to 2020/2021 (approximately $0.737 million in total). If successful, this will provide short term funding and also an opportunity TRANCHE : ENHANCE CAPABILITY AND CAPACITY to engage with stakeholders about longer term funding opportunities.
Deepen understanding of customer experience and forecast market demand
Establish a region-wide approach to governance
Enable eective stakeholder relationships
Support quality marketing and product development
Leverage opportunities to achieve sustainable funding
Leverage opportunities to achieve sustainable trail governance and operations
PEOPLE RESOURCES – CAPACITY AND CAPABILITY INDICATIVE COST OF PREFERRED OPTION The success of WRCTN will depend on the capability and capacity of , its personnel. Two distinct roles are required: a programme lead and a , senior advisor. They will need to deliver a large programme, working , hand in glove with a diverse range of stakeholders – including, but not limited to, trail managers, iwi, Regional Economic Development Agency, council staff, regional tourism offices and central government. WRCTN , members will have an important role in the success of the network. Trail managers, council and regional tourism offices staff will need to be , actively involved in implementing the work programme. Annualoperating cost ,
Year Year Year Year Year / / / / /
Transition Steady state
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