18-28 Bay Venues Ltd Asset Management Plan Page 1 of 143

Table of Contents EXECUTIVE SUMMARY ...... A 1. Introduction ...... 1 Scope of this Plan ...... 1 1.1 The Tauranga Region...... 1 1.1.1 The Place ...... 1 1.1.2 The Natural Environment and Climate ...... 1 1.1.3 Economy ...... 1 1.1.4 People and Population ...... 2 1.2 BVL at a Glance ...... 2 1.2.1 Baypark Stadium...... 3 1.2.2 Baypark Arena ...... 4 1.2.3 Aquatic Venues ...... 4 1.2.4 Indoor Recreation Venues ...... 5 1.2.5 Community Halls and Centres ...... 5 1.2.6 University of Waikato Adams Centre for High Performance Centre ...... 6 1.3 Overview of Asset Management Planning ...... 6 1.3.1 Asset Management Objectives ...... 6 1.3.2 Level of Asset Management Practice...... 6 1.3.3 The Level of this Plan ...... 7 1.3.4 Asset Management Maturity Index...... 7 1.3.5 Purpose of this Plan ...... 8 1.3.6 Plan Timeframe...... 9 1.3.7 Key Planning Assumptions & Limitations of this Plan ...... 9 1.3.8 Strategic and Corporate Goals ...... 9 1.4 Relationship with other Plans and Documents ...... 10 2 Strategic Environment ...... 12 2.1 Overview ...... 12 2.1.1 Purpose ...... 12 2.1.2 Vision ...... 12 2.1.3 Linkages – Community Outcomes & BVL ...... 12 2.1.4 How the BVL Activity Contributes to Community Outcomes ...... 13 2.2 Rationale for Council’s Involvement ...... 15 2.2.1 BVL and the Significance Policy ...... 15 2.2.2 Strategic Assets ...... 16 2.3 Key Partnerships & Stakeholders ...... 16 2.3.1 Key Partnerships...... 16 2.3.2 External Stakeholders ...... 17 2.3.3 Internal Stakeholders ...... 17 2.4 Business Drivers ...... 18 2.4.1 Delivery of BVL Services ...... 18 2.4.2 Health and Safety ...... 18 2.4.3 Statutory Requirements ...... 18 2.4.4 Specific Requirements for Asset Management Planning ...... 20 2.4.5 National Standards ...... 20 2.4.6 Policies, Strategies, Plans and Guidelines ...... 20 2.4.7 Bylaws ...... 23 3 Business Overview ...... 24 3.1 Delivery of BVL Services ...... 24 3.2 Revenue, Funding & Expenditure ...... 24 3.2.1 Revenue ...... 24 3.2.2 Funding ...... 26 3.2.3 Expenditure ...... 27 3.3 BVL in Tauranga ...... 28 3.4 Significant Negative Effects of this Activity ...... 30 3.5 Organisational Structure ...... 32

18-28 Bay Venues Ltd Asset Management Plan Page 3 of 143 4 Levels of Service ...... 34 4.1 Overview ...... 34 4.2 LGA 2002 Requirements ...... 34 4.2.1 Developing Levels of Service ...... 34 4.2.2 Levels of Service Decision Making Process ...... 34 4.2.3 Levels of Service Reporting ...... 35 4.2.4 Changes in Levels of Service ...... 35 4.3 Levels of Service Relationship to Asset Management Planning ...... 35 4.3.1 Levels of Service Delivery Process ...... 35 4.3.2 Levels of Service Development Process ...... 35 4.3.3 Establishing Customer Values ...... 35 4.3.4 Activity Strategic Outcomes ...... 36 4.4 LoS, Performance Measures and Performance Target ...... 37 4.5 LoS, Customer Satisfaction Survey June 2017 ...... 38 5 Growth and Demand ...... 40 5.1 Overview ...... 40 5.2 BVL Usage – Historic Data ...... 40 5.2.1 Network Usage ...... 40 5.3 Growth Strategies ...... 41 5.3.1 SmartGrowth ...... 41 5.3.2 Overview of Growth & Key Demand Drivers ...... 42 5.4 Population Projections ...... 42 5.4.1 Demographic Overview ...... 42 5.4.2 Impacts on the BVL Activity and Management Strategy ...... 44 5.5 Residential, Commercial and Industrial Development ...... 44 5.5.1 Residential Development, Commercial & Industrial Development Prediction ...... 44 5.5.2 Impacts on the BVL Activity and Management Strategy ...... 44 5.6 Changes in Technology and Community Expectations ...... 45 5.6.1 Impacts on the BVL Activity and Management Strategy ...... 45 5.7 Climate Change ...... 45 5.7.1 Impacts on the BVL Activity and Management Strategy ...... 45 5.8 Legislation/Regulations ...... 46 5.8.1 Impacts on the BVL Activity and Management Strategy ...... 46 5.9 BVL Demand ...... 46 5.10 Capital Works Programme and Funding ...... 46 6 Risk Management ...... 47 6.1 Overview ...... 47 6.1.1 Key Risks ...... 47 6.1.2 Level of Risk ...... 47 6.2 Current Situation ...... 48 6.2.1 Corporate Policy ...... 48 6.3 Risk Management Process ...... 49 6.3.1 Risk Management Process ...... 50 6.3.2 Identify Possible Activity Risks ...... 50 6.3.3 Determine Likelihood and Consequence for Gross Risk Factor ...... 50 6.3.4 Identify Current Systems & Processes, and their Effectiveness ...... 54 6.3.5 Determine Net Risk ...... 54 6.3.6 Prioritise Net Risks and Formulate Action Plan for Risk Management...... 54 6.3.7 Monitor, Measure, Report, Review Plan and Actions ...... 54 6.3.8 Review Risks ...... 55 6.4 Criticality of Assets ...... 55 6.4.1 Overview ...... 55 6.4.2 Significance ...... 55 6.4.3 Strategic Importance ...... 55 6.4.4 Organisation level ...... 55

18-28 Bay Venues Ltd Asset Management Plan Page 4 of 143 6.4.5 Civil Defence Role ...... 55 6.4.6 Evaluation Method ...... 56 6.4.7 Rating ...... 56 6.5 Risk Register ...... 56 6.5.1 Building Integrity and Quality Assessments ...... 56 6.6 Risk Action Plan ...... 57 6.6.1 Link to Asset Management Improvement Plan ...... 58 6.6.2 Monitor, Measure, Report, Review Plan and Actions ...... 58 7 Life Cycle Management ...... 59 7.1 Introduction ...... 59 7.2 Work Category Definitions ...... 59 Asset Performance ...... 60 7.3 BVL Overview ...... 61 7.3.1 Overview - Age and Condition ...... 61 7.4 Baypark Stadium ...... 63 7.4.1 Overview ...... 63 7.4.2 Asset Value and Depreciation ...... 67 7.4.3 Age and Condition ...... 67 7.4.4 Asset Capacity and Performance...... 67 7.4.5 Resource Consents ...... 67 7.4.6 General LCM Strategies and Plans...... 68 7.5 Baypark Arena ...... 69 7.5.1 Overview ...... 69 7.5.2 Asset Value and Depreciation ...... 69 7.5.3 Age and Condition ...... 69 7.5.4 Asset Capacity and Performance...... 70 7.5.5 General LCM Strategies and Plans...... 70 7.6 Baywave TECT Aquatic & Leisure Centre ...... 71 7.6.1 Overview ...... 71 7.6.2 Asset Value and Depreciation ...... 71 7.6.3 Age and Condition ...... 71 8.6.4 Asset Capacity and Performance ...... 72 7.6.4 Resource Consents ...... 72 7.6.5 General LCM Strategies and Plans...... 72 7.7 Mount Hot Pools ...... 74 7.7.1 Overview ...... 74 7.7.2 Asset Value and Depreciation ...... 74 7.7.3 Age and Condition ...... 74 7.7.4 Asset Capacity and Performance...... 74 7.7.5 Resource Consents ...... 75 7.7.6 General LCM Strategies and Plans...... 75 7.8 Otumoetai Pool ...... 76 7.8.1 Overview ...... 76 7.8.2 Asset Value and Depreciation ...... 76 7.8.3 Age and Condition ...... 76 7.8.4 Asset Capacity and Performance...... 77 7.8.5 Resource Consents ...... 77 7.8.6 General LCM Strategies and Plans...... 77 7.9 Memorial Pools ...... 78 7.9.1 Overview ...... 78 7.9.2 Asset Value and Depreciation ...... 78 7.9.3 Age and Condition ...... 78 7.9.4 Asset Capacity and Performance...... 79 7.9.5 Resource Consents ...... 79 7.9.6 General LCM Strategies and Plans...... 79 7.10 Greerton Aquatic & Leisure Centre ...... 80 7.10.1 Overview ...... 80 7.10.2 Asset Value and Depreciation ...... 80 7.10.3 Age and Condition ...... 81 7.10.4 Asset Capacity and Performance...... 81 7.10.5 Resource Consents ...... 81

18-28 Bay Venues Ltd Asset Management Plan Page 5 of 143 7.10.6 General LCM Strategies and Plans...... 81 7.11 Queen Elizabeth Youth Centre ...... 82 7.11.1 Overview ...... 82 7.11.2 Asset Value and Depreciation ...... 82 7.11.3 Age and Condition ...... 82 7.11.1 Asset Capacity and Performance...... 83 7.11.2 General LCM Strategies and Plans...... 83 7.12 Mount Sports Centre ...... 85 7.12.1 Overview ...... 85 7.12.2 Asset Value and Depreciation ...... 85 7.12.3 Age and Condition ...... 85 7.12.4 Asset Capacity and Performance...... 85 7.12.5 General LCM Strategies and Plans...... 86 7.13 Community Halls ...... 87 7.13.1 Overview ...... 87 7.13.2 Asset Value and Depreciation ...... 88 7.13.3 Age and Condition ...... 88 7.13.4 Asset Capacity and Performance...... 89 7.13.5 General LCM Strategies and Plans...... 89 7.14 Papamoa Sport and Recreation Centre ...... 90 7.14.1 Overview ...... 90 7.14.2 Asset Value and Depreciation ...... 90 7.14.3 Age and Condition ...... 90 7.14.4 Asset Capacity and Performance...... 91 7.14.5 General LCM Strategies and Plans...... 91 7.15 Arataki Community Centre ...... 92 7.15.1 Overview ...... 92 7.15.2 Asset Value and Depreciation ...... 93 7.15.3 Age and Condition ...... 93 7.15.4 Asset Capacity and Performance...... 93 7.15.5 General LCM Strategies and Plans...... 93 7.16 University of Waikato Adams Centre for High Performance ...... 95 7.16.1 Overview ...... 95 7.16.2 Asset Value and Depreciation ...... 96 7.16.3 Age and Condition ...... 96 7.16.4 Asset Capacity and Performance...... 97 7.16.5 General LCM Strategies and Plans...... 97 8 Financial Forecast ...... 98 8.1 Overview ...... 98 8.1.1 Expenditure ...... 98 8.2 Asset Management Assumptions ...... 99 8.3 Maintenance Strategy and Planning ...... 99 8.3.1 Operations & Maintenance ...... 99 8.3.2 Operations & Maintenance Programme ...... 100 8.3.3 Operations and Maintenance Forecasts ...... 100 8.4 Capital & Renewal Strategy and Planning ...... 101 8.4.1 Renewal Works ...... 101 8.4.2 Renewal Strategy...... 101 8.4.3 Renewal Works Programme ...... 101 8.4.4 Capital & Renewal Forecasts ...... 102 8.5 Disposals Planning Strategy and Planning ...... 104 8.6 Asset Valuation ...... 105 8.6.1 Introduction ...... 105 8.6.2 Accounting Standards & Industry Guidelines ...... 105 8.6.3 Valuation Process & Methodology ...... 105 8.6.4 Asset Register ...... 106 8.6.5 Asset Assumptions (Valuation Assumptions) ...... 106 8.6.6 Replacement Cost (Calculations)...... 106 8.7 Revenue and Financing Policies ...... 106 8.8 Risk to Significant Forecasting Assumptions ...... 107 18-28 Bay Venues Ltd Asset Management Plan Page 6 of 143 9 Business Processes ...... 109 9.1 Overview ...... 109 9.2 Civil Defence Emergency Management ...... 109 9.2.1 Why is a Plan Needed? ...... 109 9.2.2 The Purpose of the CDEM Plan ...... 110 9.2.3 Profile of the Bay of Plenty CDEM Group Area ...... 110 9.2.4 Strategic Framework ...... 111 9.3 Business Systems ...... 111 9.3.1 Compliance with LGA 2002 Schedule 10 Requirements ...... 113 9.3.2 Service Delivery Mechanism and Quality Management ...... 114 10 Improvement Plan ...... 116 10.1 Asset Management Improvement Process ...... 116 10.1.1 Overview ...... 116 10.2 What are typical key improvements areas? ...... 116 10.2.1 Improvements since the last Asset Management Plan ...... 117 10.2.2 Three-Year Improvements ...... 117

18-28 Bay Venues Ltd Asset Management Plan Page 7 of 143 List of Abbreviations

ADC Annual Depreciation Cost AM Asset Management AMP Asset Management Plan AS Australian Standards ASB ASB Bank Limited BOP Bay of Plenty BOPRC Bay of Plenty Regional Council BRE Business Risk Exposure BVL Bay Venues Limited CAD Computer-Aided Design CCO Council-Controlled Organisation CDEM Civil Defence Emergency Management Act 2002 CEO Chief Executive Officer CPTED Crime Prevention through Environmental Design DSA Detailed Seismic Assessment DRC Depreciated Replacement Cost FRS Financial Reporting Standard GIS Geographic Information System GRC Gross Replacement Cost HVAC Heating, Ventilating, and Air Conditioning IIMM International Infrastructure Management Manual IP Improvement Plan ISA Initial Seismic Assessment ISO International Organisation for Standardisation IT Information Technology LCM Life Cycle Management LGA Local Government Act 2002 LoS Level of Service LTP Long Term Plan MEA Modern Equivalent Assets MSC Mount Sports Centre NAMS New Zealand Asset Management Support Group NIDEA National Institute of Demographic and Economic Analysis NPV Net Present Value NZRA New Zealand Recreation Association NZS New Zealand Standards ODM Optimised Decision Making PSRC Papamoa Sport and Recreation Centre PVC Polyvinyl Chloride QEYC Queen Elizabeth Youth Centre RMA Resource Management Act 1991 SPNZ Sport New Zealand SPM Asset Management Software TCAL Tauranga City Aquatics Limited TCC Tauranga City Council TCVL Tauranga City Venues Limited TECT Tauranga Energy Consumer Trust VIP Very Important Person WBOPDC Western Bay of Plenty District Council

18-28 Bay Venues Ltd Asset Management Plan Page 8 of 143 EXECUTIVE SUMMARY

This executive summary provides an overview for the Board of Directors, senior managers, financial and corporate planners on the key philosophies guiding asset management, whilst identifying key issues including service levels, trends and risks as well as financial implications.

WHO WE ARE AND WHAT WE DO

Bay Venues Limited (BVL) was set up by Tauranga City Council (TCC) as a limited liability council- controlled organisation (CCO) on 1 July 2013 by merging two existing CCOs Tauranga City Venues Limited (TCVL) and Tauranga City Aquatics Limited (TCAL). TCC has tasked BVL to achieve efficiencies in operating costs whilst maintaining fit for purpose facilities and opportunities with no reduction in the level of service currently available.

BVL’s Vision and purpose, contained in the 2018 Strategic Plan is as follows: “Enriching Tauranga for everyone. We are the Kaitiaki. We care for and optimise our community facilities to create value for Tauranga City and enhance the quality of life of its people, now and into the future”. BVL’s core business is venue ownership and management, and the operation of venues based businesses, programmes and services including events. Our facilities include Baypark Stadium and Arena, Aquatic Venues, Indoor Recreation Venues, Community Halls and Centres and the University of Waikato Adams Centre for High Performance (Adams Centre). In order to achieve our purpose BVL has prepared a core Asset Management Plan, which is summarised below.

PURPOSE OF ASSET MANAGEMENT PLAN

The Asset Management Plan (AMP) represents BVL’s tactical plans for managing its assets cost- effectively and responsibly for present and future generations. An example of tactics is to consider reviewing asset performance and how each venue fits into the companies long term strategies.

It provides a document for all BVL and TCC staff as a guide on how our assets should be managed and what legislative requirements there are under the Local Government Act (LGA).

This AMP also identifies various levels of risk to BVL and TCC and what actions should be considered in mitigating any risk. Risks to business and computer systems, health and safety and natural disasters are addressed later in the document.

OUR GOALS, OBJECTIVES AND LEVELS OF SERVICE

BVL has five strategic pillars which support our vision and purpose. The Facilities pillar focuses on asset management through the following objectives:

 Every facility is well looked after, well maintained and well-presented,

 Every facility provides a safe environment for staff and visitors

 The potential of our current facilities is optimised

 To propose and develop new facilities to meet future needs of the community.

18-28 Bay Venues Ltd Asset Management Plan Page 9 of 143 TCC has identified, through its Letter of Expectation to BVL that it funds BVL to deliver community- related outcomes, which apply to all activities that are considered to have a community focus, under the following three areas:  Accessibility - our community facilities must be: maximised for a variety of purposes, responsive to community needs, and as accessible to as many people from Tauranga City as possible.  Levels of Service - our community facilities must be safe, welcoming, and well maintained, while delivering customer-focused service, to ensure positive experiences and high levels of satisfaction for the community.  Programmes and Services - our community facilities must be optimised through the delivery of a range of programmes and services in order to help off-set operating costs, fill underutilised spaces, and provide positive community outcomes.

Levels of service (LoS) are key business drivers, which influence all asset management decisions. The term "level of service" has a particular meaning in asset management. The National Asset Management Steering (NAMS) Group defines levels of service as the descriptions of the service output for a particular activity or service area. Customer values and demands provide the cornerstone to the development of LoS from both a customer and technical point of view. The customer values and key factors driving demand for BVL activities are as follows:

 Types of venues

 Quantity of venues

 Quality of venues

 Accessibility of venues

 Affordability of facilities and services

 Services and activities provided

 Awareness of facilities and services offering

 Social benefits to the whole community

 Cultural appropriateness of offerings

 Social trends towards recreation

 Efficiency / Sustainability

 Health & Safety

 Reliability / Responsiveness. LoS statements become meaningful when they are assessed by measuring and monitoring performance and linking them with specific community outcomes.

GROWTH AND DEMAND IMPACTING ON OUR ASSETS AND ACTIVITIES Projected growth and anticipated trends in demand patterns will affect future demand for BVL assets and asset-related services. The key drivers influencing the growth and demand on BVL assets are summarised below:

 Population projections (growth)

 Residential, commercial and industrial development – increasing development will increase local populations. This may also increase competition.

 Tourism – cruise ships particularly are increasing every year. It is common during cruise season to see a number of ‘cruisers’ at the Hot Pools. 18-28 Bay Venues Ltd Asset Management Plan Page 10 of 143  Changes in technology and community expectations – need to stay abreast and respond accordingly.

 Climate change – particularly at Baywave, Hot Pools and Memorial Pool, weather greatly affects visits at these venues.

 Public and environmental health – Increased publicity around obesity in New Zealand is leading to uptake in various indoor and outdoor activities. Larger venues use a high amount of resources for example water and electricity. How can we minimise this as well as waste?

 BVL charging and tariffs – how will increasing prices affect visitors?

 Service provider (City Waters, Power, Telecommunications etc.) charging and tariffs

 Legislative changes and requirements

 Resource consent requirements – Consider finite resources such as geothermal water supply.

 Need for quality improvements.

Tauranga has been experiencing a sustained period of rapid growth. Statistics New Zealand subnational population estimates for Tauranga indicate the population grew by 11.9% from 2006 to 2013 to a total population of 119,800 in 20131. A range of organisations provide population projections for Tauranga, all indicate significant growth and changes in the age profile of Tauranga’s population. Smartgrowth projections are that the population of Tauranga was 117,280 in 2013 and will be 161,646 by 20332

Demand is about who is currently using BVL facilities, and who potentially wants to use them. As such the current level of use, pattern of use, profile of use and the desired level of use have been analysed as part of the asset management process. Across the network of BVL managed facilities hours of use and user visits have shown consistent increases since BVL was established in 2013. Over the period hours of use have increased from over 75,000 hours in 2013/14 to over 97,000 hours in 2016/17 (28% increase) and user visits have increased from 1.6 million in 2013/14 to 1.9 million in 2016/17 (23% increase).

Existing data has been analysed and identified the following key trends for the future:

 Some demand will be created by population growth

 The greatest increase in demand is likely to occur in peak times, as traditional sporting and community structures create peak demand pressures (early mornings, evenings and weekends).

 People want recreational facilities located close to where they live and work

 An aging population and increasing ethnic diversity will lead to demands for different types of activities

 The community increasingly seeks tailored programmes, rather than just the passive use of facilities

Changes and increases in demand will be managed through a combination of non-asset solutions and asset creation.

In the first instance non-asset solutions are sought. These include:

 Changing the hours of use to cater for additional demand. For example: have longer opening hours

1 http://nzdotstat.stats.govt.nz/wbos/Index.aspx?DataSetCode=TABLECODE7502 Note: This is significantly higher than the 2013 census night count for Tauranga (114,789) but is recommended by Statistics NZ as being more accurate for Tauranga City. 2 Source: SmartGrowth 2014 Review – Demographic and Employment Projections 2013 – 2063, NIDEA, University of Waikato, 2014

18-28 Bay Venues Ltd Asset Management Plan Page 11 of 143  Discount incentives to promote the use of the network of facilities. For example: users of Aquatic Facilities can use other facilities at discounted prices to encourage and spread demand

 Promotion of alternative venues to spread the demand. For example, the Baywave Aquatic Centre promotes Greerton Aquatic Centre (or vice versa) to lane swimmers in order to reduce and spread the demand during peak periods. The Baypark Arena promotes the Queen Elizabeth Youth Centre (QEYC) to events or community uses which cannot be accommodated within the Arena (and vice versa)

 Promotion of inter departmental benefits. For example learn to swim offerings to tumble time customers; Clubfit offerings to aquatic members; venue or programme discount vouchers as prizes for sports leagues

Where non-asset solutions are insufficient, new assets will be created.

OUR ASSET BASE

ASSET REGISTER

BVL uses the TCC managed asset software system Accela. TCC went live with Accela through a staged implementation from October 2012 – December 2014, BVL went live in December 2014. Accela uses information merged from previous asset management systems (Confirm, SPM and Hansen). Information is now consolidated in the one system for BVL assets, and work is ongoing to continually improve the data integrity at BVL Venues. This register of assets excludes ‘whole assets’ such as a building and is broken down into assets within the building such as roof, floor, heating systems, etc. All BVL assets (excluding IT and vehicles) are included in this system. Some work is required to confirm the quality and completeness of the asset data in this system.

ASSET VALUATION

Statutory financial reporting requires BVL to revalue its fixed assets at least every five years. The asset valuation is used for asset management (calculating long-term asset renewal projections), identifying loss of service potential (depreciation) and for financial reporting purposes.

OUR CHALLENGE

Our customers use our facilities on a daily basis, and as our communities grow, increased pressure is placed on BVL’s existing asset base. A strategic planning approach is needed given the large operational and capital expenditure expected during the long lives of the assets, and the lead times in planning for upgrades, replacements and the creation of new assets.

The following significant issues need to be considered when managing BVL assets:

 Data integrity

 Age, deterioration of assets and associated timing of the required level of investment to maintain, renew and replace existing assets

 Significant public interface requiring a high level of maintenance to manage risks to ensure the health and safety of the public and mitigate any adverse effects on the environment

 Ensuring appropriate facility maintenance is achieved, whilst maintaining public access through a minimum of facility closures

 Reducing high operating costs and increasing sustainability (energy efficient, water saving, minimise waste).

18-28 Bay Venues Ltd Asset Management Plan Page 12 of 143 HOW WE MANAGE OUR ASSETS

RISK MANAGEMENT

The objective of risk management is to identify the specific business risks, together with any possible risks to the health and safety of employees, other contractors and the general public, associated with the ownership and management of the assets.

The current risk management practice focuses on the threats to the activities only. The key risk areas identified across the BVL activities include:

 Health and Safety incidents – worker or contractor actions or inactions contribute to a fatality, serious injury or illness of a customer, worker or contractor.

 Successful computer cyber-attack – causing infected computer data, destruction or corruption of data or exposure of sensitive, private or confidential data.

 Natural disaster event – causing damage to assets

 Interest rate increases quicker or higher than anticipated by TCC – leading to increased costs and failure to meet budget expectations

 Key asset failure – failure of pipe infrastructure

 Failure or major disruption to key business systems – directly impacting on service delivery or ability to capture and access key information

 Water borne parasitic contamination outbreak – causing serious illness and possibly death in multiple victims

As part of the risk management process a detailed risk register and action plan has been prepared in consultation with key staff and the Asset & Projects Manager. This is included in Appendix 1. This is a living document, which is updated when new risks are identified and/or actions have been monitored or measured.

SUSTAINABILITY

BVL aims to ensure, that the facilities are managed sustainably to create value for the people of Tauranga now and into the future. Sustainability is about bringing together and balancing the planning and delivery of services across the social, cultural, economic and environmental well-beings at the same time. This is achieved by getting the most positive improvement for the well-beings when making decisions, while at the same time minimising the negative effects.

LIFE CYCLE MANAGEMENT

Life cycle management (LCM) describes the process of managing the entire life span of an asset, from the planning process through its development and useful life. For BVL, LCM is also about making life cycle thinking and sustainability front of mind with operational staff to achieve continuous improvement. The LCM strategies are divided into the three work categories as shown in the Figure 1 below.

18-28 Bay Venues Ltd Asset Management Plan Page 13 of 143 Figure 1: BVL Lifecycle Management Categories

Lifecycle Management Categories

Operations & Development Renewal Maintenance Works

Proactive Reactive Replacement Rehabilitation Creation Disposal Maintenance Maintenance

TCC / BVL Externally Private Public Funded Funded Partnerships

The components of LCM categories are: Asset Operations: The active process of utilising an asset, which will consume resources such as manpower, energy and materials. Operations include routine inspections and testing to monitor asset condition and identify the need for maintenance and repair work. Asset Maintenance: The on-going day-to-day work activity required to keep assets serviceable and prevent premature deterioration or failure. Two categories of maintenance are carried out:

 Proactive (Planned) Maintenance: Work carried out to a predetermined schedule or programmed period as a result of identified needs (e.g. repairs of faults of a more significant nature, but which do not pose a hazard). Planned maintenance includes:

- Preventative Maintenance Scheduled Inspections Condition assessment Recording and comparing of condition and performance data Greasing and lubrication of mechanical equipment

- Predictive Maintenance Vibration Analysis on mechanical equipment Condition data analysis

- Programmed Maintenance Repairs of faults that do not require immediate attention or have been temporarily fixed under Unplanned Maintenance Work in response to needs identified during routine inspections

 Preventative maintenance aims to extend asset lives to maximise the return on capital investment. Predictive maintenance utilises indicators to forecast maintenance, repair and renewal needs. Programmed maintenance aims to minimise disruption of services while reinstating an asset to its full capacity; this frequently includes the replacement of assets or asset components.

 Reactive (Unplanned) Maintenance: Work carried out in response to reported problems or defects. Unplanned maintenance is triggered by asset or service failure and frequently applies a temporary solution to reinstate a service. Once the service is restored, the remaining work is frequently carried out under programmed maintenance. Asset Renewal: Major work that restores an asset to its original capacity or the required condition. Asset Development: The creation of new assets or works which upgrade or improve an existing asset beyond its existing capacity or performance in response to changes in demand, customer expectations and legal requirements.

18-28 Bay Venues Ltd Asset Management Plan Page 14 of 143 Asset Disposal: Disposal is any activity associated with the removal and/or abandonment of a decommissioned asset. Assets may become surplus to requirements for any of the following reasons:

 Under utilisation

 Obsolescence

 Provision exceeds required level of service

 Asset no longer provides the service or fulfils the purpose for which it was intended

 Uneconomic to upgrade, operate or repair

 Policy change

 Service provided by other means (e.g. private sector involvement)

 Potential risk of ownership (financial, environmental, legal, social, vandalism).

OUR PROJECTS

The major projects which focus on dealing with increasing and changing demand over the next ten years are:

 Baypark Exhibition Space - $4,900,000

 Bay AV LED Screen - $500,000

 Baywave upgrade 19/20 stage 1 - $1,695,000

 Baywave upgrade 21/22 stage 2 - $600,000

 Greerton Aquatic Centre upgrade - $1,142,000

 Greerton Aquatic Centre spa and sauna - $600,000

 Memorial Park Multi-Purpose Facility - $30,000,000

 Otumoetai Pool learners pool additional heating and plant room - $400,000.

OUR BUDGET

Expenditure on BVL assets can be categorised into four main areas:

 Operations and Maintenance

 Renewal (Rehabilitation and Replacement)

 Capital Works (New Works)

 Disposals.

The tables below represent the summary of the proposed renewal and capital expenditure for the next ten years. Operational expenditure is located in the annual budgets.

18-28 Bay Venues Ltd Asset Management Plan Page 15 of 143 Table 1: Forecast Capital Expenditure 2018 - 2028 $ NEW CAPITAL SUMMARY 2018-28

25,659,000

8,998,000

5,678,700

2,394,700 1,550,000 657,174 80,000 114,000 105,000 70,000

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

Table 2: Forecast Renewals Expenditure 2018 - 2028 $ RENEWALS SUMMARY 2018-28

6,698,627

4,225,507 3,853,577

3,066,852 2,814,055 2,493,843 2,338,704 2,249,450 1,659,375 1,217,459

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

18-28 Bay Venues Ltd Asset Management Plan Page 16 of 143 At this time BVL have the following plans regarding the future disposal of BVL assets:

 House at 50 Miro Street – remove or demolish in the short to medium term, subject to a business case for alternative use of the site

 PSRC gym equipment – due to the closure of the gym, the majority of the equipment will be sold in 2018. Some items may be retained for relocation to other venues in the BVL network. BVL will also dispose of assets that become obsolete as a result of the renewal and upgrade programme.

OUR PLANS TO IMPROVE

Most organisations put a great deal of effort into the improvement of their assets, while a lesser amount is exerted on improving the planning, business processes and information systems that support the management of the assets. As a result, the improvements they carry out may not result in an optimum solution. The purpose of the Improvement Plan is to identify, develop and implement asset management processes. The improvement tasks include:

 The provision of an Asset Management Policy promoting asset management as part of BVL organizational culture.

 The cycle of AMP monitoring, review, revision and audit to improve the effectiveness of AMP outputs and compliance with audit criteria, legislative requirements and best appropriate practice.

 The definition of service standards reflecting community outcomes through public consultation. The AMP is used to identify service level options and costs, and the delivery of services is a key objective of asset management planning.

 Identify and prioritise ways to cost-effectively improve the quality of the AMP, and, therefore, decision making and service delivery.

18-28 Bay Venues Ltd Asset Management Plan Page 17 of 143 1. Introduction Scope of this Plan

The plan format shown below outlines the sections contained within this asset management plan.

• Summary of core components of all of the sections below, suitable Executive Summary for separate publication.

Introduction • Overview of the region, the activity at a glance, asset management Section 1 planning and the scope of the plan.

• This section outlines the vision, goals and objectives, community Strategic Environment outcomes and how the activity contributes to those outcomes, Section 2 rationale for Bay Venues involvement, key partnerships and stakeholders and the key business drivers.

Business Overview • Overviews of the key service providers, overview of expenditure and Section 3 funding, significant negative effects and outlines the structure that supports the activity.

Levels of Service • Linking LoS to Community Outcomes, identification of current and Section 4 future LoS and core values.

Growth & Demand • Identifies the key drivers influencing future demand and the Section 5 management options to address the impacts of growth, developer contributions.

Risk Management • States the activity risks, descriptor, management options and Section 6 monitoring.

Sustainability • Identifies Sustainability opportunities and current initiatives at TCC Section 7 as a whole and the Bay Venues in particular.

Life Cycle Management • Identifies key issues, provides asset lifecycle overview, identifies Section 8 maintenance, renewal and new development works.

Financial Forecast • Identifies 10 year financial forecasts, key assumptions, funding Section 9 policies and projects.

Business Process • Describes the current asset management process and practices Section 10 and the targets for improvement.

Improvement Plan • Identifies the improvement tasks for the next 3 years. Section 11

18-28 Bay Venues Ltd Asset Management Plan Page 18 of 143 1.1 The Tauranga Region

1.1.1 The Place Tauranga is the largest city of the Bay of Plenty region in the North Island of New Zealand. It lies 205 km south-east of Auckland, 105 km east of Hamilton and 85 km north of Rotorua. The City of Tauranga includes the major suburbs/areas of Tauranga Central (The Avenues), Matua, Tauriko, Otumoetai, Bethlehem, Greerton, Papamoa, Ohauiti, Maungatapu and Welcome Bay.

Figure 2: Map of Tauranga

1.1.2 The Natural Environment and Climate The area of the City is 13,380 hectares. Tauranga is built around its hills and harbours. The landscape is dominated by the harbour, long white sand beaches, the Kaimai mountain ranges to the west and the volcanic cone of Mauao. Tauranga has an average temperature of 14.4ºC with about 2350 sunshine hours per year. In recent year’s Tauranga has experienced more frequent extreme weather events and average rainfall has increased to 1426 mm per annum.

1.1.3 Economy Tauranga is positioned at the centre of the Western Bay of Plenty economy and strongly supports the upper North Island economy with a high tonnage port facility and efficient connections to trading partners in the Waikato and Auckland. Tauranga also provides a large number of secondary industry benefits to locally based export business and industry based in Tauranga and the Western Bay of Plenty.

The average annual percentage of economic growth has been 2.5% in Tauranga over the last decade, compared to 1.9% nationally. Manufacturing, health-care and construction are well- established in the local economy and make the highest contribution to local GDP. Retail and wholesale trade have also been significant growth contributors over the last ten years.

18-28 Bay Venues Ltd Asset Management Plan Page 19 of 143 The Port of Tauranga is the largest export port in New Zealand and growth is projected to continue with it being the only port in New Zealand able to take “mega-ships”. Container volumes through Port of Tauranga are projected to double by 2025. Efficient access to the Port is a key economic driver for the city.

1.1.4 People and Population Statistics NZ estimates for the Tauranga indicate the population was 119,800 as at 30 June 2013. Tauranga is experiencing a period of rapid growth with population estimated by Statistics NZ as 131,500 in 20173. Whilst starting at a slightly lower 2013 estimate (117,283) SmartGrowth projections indicate population will increase to 161,646 by 2033 and 196,014 by 20634. Predictions are that the population over 65 years of age will increase from approximately 20% to over 30% by 2033. Some interesting statistics regarding Tauranga’s population from the 2013 census include:

 17.1% identify themselves as Māori – higher than the national average of 14.9%. Many Māori are affiliated to one of three main iwi – Ngai Te Rangi, Ngāti Ranginui and Ngāti Pūkenga. This is the 8th highest Māori population in the 67 districts on New Zealand.

 The median age for Tauranga was 41 compared to a median age of 38 for the New Zealand population

 The median personal income level in Tauranga was $27,100 lower than the New Zealand median of $28,500

 19.3% are aged 65 years and over – significantly higher than the 14.3% of the total New Zealand population.

 35.9% of all families are couples with children - significantly lower than the 45.4% of the total New Zealand population.

1.2 BVL at a Glance Bay Venues Limited (BVL) was set up by Tauranga City Council (TCC) as a limited liability council- controlled organisation (CCO) on 1 July 2013 by merging two existing CCOs Tauranga City Venues Limited (TCVL) and Tauranga City Aquatics Limited (TCAL). TCC has tasked BVL to achieve efficiencies in operating costs whilst maintaining fit for purpose facilities and opportunities with no reduction in the level of service currently available.

BVL’s Vision and purpose, contained in the 2018 Strategic Plan is as follows: “Enriching Tauranga for everyone. We are the Kaitiaki. We care for and optimise our community facilities to create value for Tauranga City and enhance the quality of life of its people, now and into the future”. BVL’s core business is venue ownership and management, and the operation of venues based businesses, programmes and services including events. Our facilities include Baypark Stadium and Arena, Aquatic Venues, Indoor Recreation Venues, Community Halls and Centres and the University of Waikato Adams Centre for High performance (Adams Centre). Along with the facilities BVL owns it also manages six venues which are owned by TCC or schools. These venues are not included in this AMP as they are not BVL assets. They are covered by the relevant TCC or school AMP.

TCC has identified, through its Letter of Expectation to BVL that it funds BVL to deliver community- related outcomes, which apply to all activities that are considered to have a community focus, under

3 http://nzdotstat.stats.govt.nz/wbos/Index.aspx?DataSetCode=TABLECODE7502 4 SmartGrowth 2014 Review – Demographic and Employment Projections 2013 – 2063, NIDEA, University of Waikato, 2014

18-28 Bay Venues Ltd Asset Management Plan Page 20 of 143 the following three areas:  Accessibility - our community facilities must be: maximised for a variety of purposes, responsive to community needs, and as accessible to as many people from Tauranga City as possible.  Levels of Service - our community facilities must be safe, welcoming, and well maintained, while delivering customer-focused service, to ensure positive experiences and high levels of satisfaction for the community.  Programmes and Services - our community facilities must be optimised through the delivery of a range of programmes and services in order to help off-set operating costs, fill underutilised spaces, and provide positive community outcomes. By achieving in these areas we will make a significant contribution to Tauranga being a community of vibrant, healthy and actively involved people. The aspirations of BVL support the current vision of Tauranga City Council to be an internationally competitive city that balances economic, social, cultural and environmental wellbeing. In particular BVL venues and services contribute to Tauranga being a city that:

 Is inclusive, safe and healthy

 Attracts business people and visitors.

Figure 3: BVL Facilities Network

The asset groups covered by this Asset Management Plan (AMP) are:

1.2.1 Baypark Stadium Is Tauranga City’s only significant outdoor stadium. It has the capacity for crowds of up to 17,700 people inclusive of seated and corporate hosting areas. It features a 480 metre oval clay speedway track and a turf area (inside the track) which fits field sports codes such as rugby or football. A temporary concrete track is poured on the infield and used for the D1NZ drifting. Whilst the venue meets the minimum requirements for provincial level rugby it is no longer used for this purpose. Factors

18-28 Bay Venues Ltd Asset Management Plan Page 21 of 143 contributing to this include: most competitor venues exceed the minimum requirements for rugby; it does not provide the desired crowd experience due to distance of the seating from the playing area. The venues primary activities are Speedway race meetings (15-17 per annum) Baypark Stadium also hosts other events and activities suited to outdoor spaces. Current annual events include Jetsprints, Drifting and outdoor concerts etc. There are three pavilions on the western side of the main carpark. These pavilions were originally constructed as storage sheds. In 2016 BVL converted shed one into an Indoor Sports Pavilion, including a reception area, two netted courts and a toilet change room area. This area is currently being leased to an external third party. In 2018, BVL converted shed three into an indoor drift trike course and manage as a joint venture with a third party. Shed two is still currently used as storage but consideration is underway to better utilise this space as a revenue gathering activity. To do so, additional storage would need to be considered elsewhere on site. The Stadium Lounge is a self-contained venue adjoined to Baypark Stadium offering a secure and private environment to host public and private functions. Suitable for meetings, conferences, gala dinners, school balls, private functions, weddings and small to medium sized trade shows, this venue can comfortably accommodate up to 450 people for dinner or 500 people theatre style. For major stadium events, this facility offers the client added flexibility for hosting corporate hospitality or pre and post event activities.

1.2.2 Baypark Arena This is a versatile multi-purpose venue with the ability to host many types of events – from community and national sporting fixtures through to trade shows, conferences, gala dinners, corporate hospitality and concerts. The Baypark Arena provides for community sport delivery, along with a range of pay for play sports leagues and programmes that service the community. Within the facility is a licensed café providing a quality food and beverage service.

1.2.3 Aquatic Venues The Aquatics Venues consists of five Aquatic and Leisure facilities – Baywave TECT Aquatic & Leisure Centre, Mount Hot Pools, Greerton Aquatic & Leisure Centre, Otumoetai pool and Memorial pool. These facilities consist of a mix of indoor and outdoor pools that provide safe, all season swimming, and health and fitness opportunities for the community. Baywave TECT Aquatic & Leisure Centre This aquatic and leisure centre, is recognized regionally as providing a variety of fun, safe, well maintained aquatic and leisure activities for the general public including group fitness classes, both aquatic and gym. The facility is also designed and utilised for elite squad training and development, water polo, underwater hockey and local, regional and national events. Within the facility, a number of business units exist as ‘secondary’, although complimentary to the main overall purpose of the facility:

 Learn to Swim

 Childcare Centre

 Clubfit

 Café

 Merchandise Mount Hot Pools The Mount Hot Pools serves as an iconic and unique hot salt water facility and tourist attraction, providing rest, relaxation and rejuvenation/rehabilitation for a broad range of the community, including elite sports people, elderly and families. The Hot Pools also provides a number of physical therapy options for the general public, including massage therapy, aqua walking and aqua aerobics. Greerton Aquatic & Leisure Centre

18-28 Bay Venues Ltd Asset Management Plan Page 22 of 143 The primary purpose of this venue is very similar to that of Baywave’, being an aquatic and leisure centre, and providing a variety of fun, safe, well maintained aquatic and, leisure activities for the general public (primarily local), including group fitness classes, both aquatic and gym. This facility also allows for the continued growth and development of one of the region’s best performing elite swim clubs. Memorial Pool This is a seasonal facility providing a safe, clean, maintained environment for families and recreational swimmers to enjoy during the summer months. Otumoetai Pool The primary purpose of this facility is to provide for high level squad training, growth and development, while enabling Otumoetai College to undertake ongoing physical education throughout the school year. In addition, the Otumoetai Pool provides a safe, clean, maintained facility for the general public to partake in various aquatic activities.

1.2.4 Indoor Recreation Venues BVL owns two Indoor Recreation Centres, the Queen Elizabeth Youth Centre (QEYC) and the Mount Sports Centre (MSC). BVL also operates two school owned indoor recreation venues, at Aquinas College and Merivale School. The schools are responsible for asset management for those facilities. Queen Elizabeth Youth Centre (including Memorial Hall) This facility provides the city with a multi-court venue suitable for hosting sporting groups and community activities, as well as hosting community and regional sporting fixtures and minor events. A range of programmes that service the needs of the community are also run from this venue. A holiday programme servicing the local area is based at this facility. Mount Sports Centre Located at Blake Park, this facility features a single court gymnasium suitable for hosting sporting groups, community activities and minor events. An after school care and holiday programme servicing the local area is also based at this facility.

1.2.5 Community Halls and Centres The Community Halls and Centres provide space for different community groups, recreational activities and private functions. Each Hall and Community Centre is available for hire seven days a week for either regular periodic or one off bookings. The Community Centres hosts a range of different sized rooms with access to kitchen facilities, tables, chairs, and other equipment. The centres and halls can host 50 to 508 people at maximum capacity. An after school care and holiday programme servicing the local area is based at Arataki Community Centre and Papamoa Sport and Recreation Centre.

Community Halls: Community Centres:

Bethlehem Hall Arataki Community Centre

Matua Hall Papamoa Sport and Recreation Centre

Greerton Hall

Welcome Bay Hall

Tauriko Hall

Note: The following venues are excluded from this AMP as they are owned by TCC and covered in their relevant asset management plan: Cliff Road Building, Elizabeth Street Hall, Waipuna Park Pavilion, Papamoa Community Centre (at the Library).

18-28 Bay Venues Ltd Asset Management Plan Page 23 of 143 1.2.6 University of Waikato Adams Centre for High Performance Centre Based at Mount Maunganui opposite the Bay Oval, the Adams Centre for High Performance is a world-class facility of over 2,500m2 of state of the art facilities including a 652m2 gym, plunge pools, physiotherapy, massage and rehabilitation rooms, a sport science laboratory with performance testing, research and acclimatisation facilities, meeting rooms, board and conference rooms along with an athletes lounge and kitchen. It caters for a wide range of athletics, high performance organisations, sports science research and athlete medical support services. Current tenants of the centre include NZ Rugby, BOP Rugby, Body in Motion High Performance Sports and the University of Waikato. Adjacent to the Adams Centre, at number 50 Miro Street is a residential house currently leased to the Bay of Plenty Rugby Union. This site was purchased from TCC in 2016 and is currently being considered as a development for accommodating visiting sports groups. 1.3 Overview of Asset Management Planning

1.3.1 Asset Management Objectives The Asset Management Plan (AMP) underpins the Long Term Plan (LTP) and consultative processes that have been put in place to engage the community. Asset management planning delivers a range of benefits to the community as well as the provider of the service, the main ones being:

 Improved communications and relationships with service users (following LGA’s “outcomes” approach)

 Improved understanding of service level options and standards

 Minimum lifecycle (long term) costs are identified for an agreed level of service

 Better understanding and forecasting of asset related management options and costs

 Improved Risk Management (probability and consequence of asset/network failures addressing continuity of service; non-asset solutions such as demand management)

 Improved decision making based on costs and benefits of alternatives

 Clear justification of forward works programmes and funding requirements

 Improved accountability over the use of public resources

 Improved customer satisfaction and organisational image.

1.3.2 Level of Asset Management Practice Core Asset Management Plans The development of an AMP is a journey of continuous improvement. At the entry level is what is commonly referred to as the Core or Basic AMP. It reflects a rudimentary knowledge of the asset (such as the basic asset register and inferred age, condition and performance), associated levels of service and the long term cash flow predictions. Minimum legislative requirements are achieved at this level. Advanced Asset Management Plans At the other end of the spectrum are the Advanced AMPs. Movement towards the development of such plans is a continuous process of data collection, verification, higher confidence levels of outputs and a systematic iterative approach to treatment options, understanding service potential and steadily reducing the number of assumptions that have been made in the past. Advanced asset management aims to employ predictive modelling, risk management and optimised decision making (ODM) techniques, in order to evaluate options and to identify optimum long term plans to deliver the levels of service agreed with the community, in order to achieve the Community Outcomes. As new condition, performance and risk assessment techniques and systems evolve, or as technologies

18-28 Bay Venues Ltd Asset Management Plan Page 24 of 143 associated with asset renewal are improved, so too will the level of sophistication of Advanced AMPs be improved.

1.3.3 The Level of this Plan This AMP is built on previous AMPs of BVL, TCC, TCAL and TCVL. (outlined on page 1 of this document). Those AMP were at a basic to medium level of asset management and were prepared using a “Top Down” approach. There was no previous AMP available for the Adams Centre. In 2005, TCC’s asset management plans successfully migrated to an intermediate level. In preparation for this plan, the structure of TCC’s Asset Management Plan template has been used, in order to gain an intermediate AMP level status for BVL and sustain consistency throughout TCC’s AMPs. However, in reality the plan only achieved a core level with some intermediate elements. It is suggested that a core AMP for BVL may be sufficient with an intermediate level in future planning. However BVL/TCC need to make that decision in an AM policy, which neither entity has yet established (Improvement Task). The AMP consists of a mixture of “Bottom Up” analysis (for asset inventory, age, maintenance history, breaks etc.) as well as “Top Down” analysis (for system condition and performance). Having reached a core/intermediate level means there is room for improvement and sophistication, and how that will be achieved is laid out in the Improvement Plan in Section 9 of this plan. An effective AMP benefits both the user and the stakeholders by demonstrating how BVL proposes to manage the assets in its care to meet agreed levels of service. The plan also enables TCC to make informed decisions about BVL assets and the ongoing investment into BVL’s activities. The plan firmly links into the immediate and long term development plans and financial plans of BVL and TCC, thereby ensuring asset managers align the BVL activity with strategic outcomes.

1.3.4 Asset Management Maturity Index As mentioned previously, TCC strives towards an advanced AMP for all services including BVL activities. The Figure 4 (next page) provides comment on the key elements of this AMP and a statement of the maturity. The maturity of the AMP elements have been based upon the Maturity Index provided in the New Zealand Asset Management Support (NAMS) Group’s International Infrastructure Management Manual (IIMM) 2011 Edition. Figure 4 identifies the current progress (blue bars) and shows where BVL are aiming to be following implementation of the three year Improvement Plan (dark blue line).

18-28 Bay Venues Ltd Asset Management Plan Page 25 of 143 Figure 4: Asset Management Maturity Index

Comments / Key AMP Criteria Tasks included in Improvement Plan (IP) Minimum / In Development Core Basic/ Intermediate Advanced

AM Policy and Strategy Corporate expectations are expressed informally “develop and review asset management plans for each facility”. A detailed AM Policy and Strategy need to be prepared, included in IP. Levels of Service Levels of service and performance measures are in place covering a range of service attributes. Growth and Demand Demand forecasts based on population prediction and historical trends. A range of demand scenarios (Growth Management /Demand Forecasting) (change in democratic) need to be developed, included in IP. Risk Management An AMP risk framework is in place and critical assets have been identified in the BVL risk plan. Review of hazards assessments for each facility is planned and included in the IP. Life Cycle Management Sufficient information available to complete valuation and information recorded in TCC’s (Asset Register) AM System, but data reliability status is not yet high. Continue updating of info required, included in IP. Life Cycle Management Building condition assessments undertaken in 2017/18 by Beca and building valuations being (Asset Condition) undertaken in June 2018.

Life Cycle Management Decision making is based upon staff and independent contractor judgement. Decision (Optimised Decision - Making) making techniques applied to large projects. Business cases required for all new capital above $20,000. Life Cycle Management High level operational and maintenance planning is documented in the LCM section. Emergency (Operational & Maintenance Planning) response plans including asset criticality for each facility is planned and included in the IP. Life Cycle Management Projects for the next 1 – 3 years have been partially scoped with major projects having (Capital Works Planning) business cases completed. Projects for 3 – 10 years have been conceptually identified. Financial Forecast Financial forecast based on AMP outputs, but asset revaluations with medium grade data confidence. Improve data confidence.

Business Processes All key staff understand their role in AM and aim towards business process improvement.

1.3.5 Purpose of this Plan The overall purpose of this Asset Management Plan is: To meet a required level of service in the most cost effective way (through the creation, operation, maintenance, renewal and disposal of assets) to provide for existing and future customers. The AMP collects high level management, financial, engineering and technical outputs from various planning studies and asset management systems, and combines these into a single document. It is a living document and is amended as better information becomes available, or in response to changing community needs and revised service levels. The AMP is intended to demonstrate that BVL and consequently TCC are managing the assets responsibly for present and future generations. It is a tool for communicating complex asset management information and strategies with stakeholders and interested parties. This includes optimal life cycle management strategies and providing details of associated long term financial requirements which (in turn) provides the ability to even out peak funding demands and to address loss of service 18-28 Bay Venues Ltd Asset Management Plan Page 26 of 143 potential of assets. It also identifies any key strategic plans relating to the provision of new assets that meet the developing needs of Tauranga.

1.3.6 Plan Timeframe This AMP covers a ten year timeframe, with a major review undertaken three yearly. The plan assumes that the BVL assets as a whole have an indefinite life, and its main focus is determining the strategies required to maintain, rehabilitate and renew components over the next 10 years, while ensuring the long term sustainability of the activity. It is intended that this plan be reviewed every year, with a major review every three years, in line with the TCC LTP process.

1.3.7 Key Planning Assumptions & Limitations of this Plan This AMP has been prepared based on:

 Levels of Service - Consultation through a number of initiatives has covered some aspects relating to BVL activity. However, the issues covered by consultation do not provide a complete picture, and therefore most levels of service are based on industry best practice.

 Asset condition and performance assessment is still partly “top-down” due to the nature of underground assets only.

1.3.8 Strategic and Corporate Goals TCC’s adopted LTP sets out the direction for the next ten years with major reviews every three years and small adjustments on an annual basis. As a CCO, BVL supports Tauranga’s City Vision and LTP direction. The Plan sets out the key principles that drive what TCC does and the community outcomes that it is aiming to achieve. A review of local government in 2010 has resulted in changes to the approach to community outcomes required in the LGA. The key changes are:

 TCC is no longer required to facilitate and coordinate community outcome processes, including the review, monitoring and reporting of these outcomes, and

 The meaning of community outcomes has changed to include only TCC’s planned contribution to the wellbeing of its district in the present and for the future. TCC agreed that eight community outcome statements could be used to represent the vision for the city. The vision statement and the community outcomes can be found in Section 2.

18-28 Bay Venues Ltd Asset Management Plan Page 27 of 143 1.4 Relationship with other Plans and Documents The LTP requirements as set out in the LGA have meant that asset management planning and strategic planning processes are strongly integrated. Some of the linkages are summarised in the following Figure and 3 below.

Figure 5: Integrated Planning Framework/Linkages

Quality of Life

Community Outcomes

BVL/Council Monitoring & Contribution to Review Outcomes

Regional Strategies / Plans Long Term Asset Management District Plan Plans Plan Legislation Annual Plan (AMP) (LTP) Standards Policies

Monitoring Contracts & Review BVL Strategies Annual Report Action

Table 3: Cyclic Planning Relationships with Other Plans, Reports and Documents

Plans/Documents Description Frequency

SmartGrowth SmartGrowth is a programme aimed at developing and implementing a To be reviewed after plan for managing growth in the Western Bay of Plenty. The Census updates, sub- SmartGrowth strategy has a 50 year horizon with a strong focus on the region population reaches next 20 year planning period. The programme is being led by BOPRC, 165,000 people or TCC, WBOPDC and Tangata Whenua, on behalf of the community.” substantial change affecting any assumptions within the strategy.

Asset Management Plan Levels of service, growth, risk, maintenance, renewal and development Should be reviewed and works and strategies are identified and budgeted for within this plan. aligned every year prior to This information automatically feeds into the LTP. the LTP and Annual Plan process.

TCC LTP The AMP’s financial projections are incorporated in the LTP. Key As a mandatory requirements: requirement of LGA 2002, this strategic plan must be  Describes the activities of Tauranga City and its community adopted every 3 years and outcomes cover a planning period of  Provides integrated decision making and co-ordination of resources at least 10 years.

 Provides a long-term focus for the TCC’s decisions and activities

BVL Strategic Plan The 2018 BVL Strategic Plan sets out the vision, purpose, guiding Annually principles and values of BVL. It also sets out specific objectives under

18-28 Bay Venues Ltd Asset Management Plan Page 28 of 143 the pillars of Facilities, People, Products & Experiences, Collaboration & Co-investment and Business Systems.

Annual Plan / A document produced annually5 by TCC to update information reported Annually on within the LTP including its objectives, intended activities, Annual Report performance, income and expenditure. The Annual Plan will show how that year of the LTP will be funded and will provide detailed financial forecasts for the first 3 years, with summary forecasts provided for years 4 to 10.

BVL produce an annual report each year.

City Plan Policies and objectives for land use and BVL infrastructure, including As applicable designations of future works to be reflected in the AMP.

By-laws, Codes of Practice These tools have been developed in support of the AMP and apply As applicable and Standards mainly to the creation of new assets and subsequent management of them.

5 Except for years where the LTP is produced.

18-28 Bay Venues Ltd Asset Management Plan Page 29 of 143 2 Strategic Environment 2.1 Overview

2.1.1 Purpose Tauranga City has the responsibility of ensuring the community which it serves is supplied with the core services required. BVL provides the facilities required in Tauranga to significantly improve the health and wellbeing of the community in conjunction with promoting the economic and general wellbeing of the region.

2.1.2 Vision BVL’s vision and purpose is: “Enriching Tauranga for everyone. We are the Kaitiaki. We care for and optimise our community facilities to create value for Tauranga City and enhance the quality of life of its people, now and into the future”.

2.1.3 Linkages – Community Outcomes & BVL TCC adopted new community outcomes in 2017. Council must set community outcomes as a statutory requirement through the LTP process. Through the 2018-2028 LTP TCC is striving to deliver a city that:

 Is well planned, with a variety of successful and thriving compact centres

 Is inclusive, safe and healthy

 Has predictable travel times and transport choice

 Protects and enhances the natural environment

 Attracts businesses, people and visitors These community outcomes reflect a desire to deliver a city that strikes the right balance of economic, social, cultural and environmental wellbeing, in order to provide a higher standard of living for all.

Figure 6: Community Outcomes

TCC has also made the following Council commitments:

 Plan for and provide affordable fit-for-purpose services

 Enhance the quality of life for current and future residents

 Work in partnership with the community that we represent

 Manage the balance between social, economic, cultural and environmental wellbeing of the community

18-28 Bay Venues Ltd Asset Management Plan Page 30 of 143 2.1.4 How the BVL Activity Contributes to Community Outcomes BVL’s venues, programmes and services contribute to all of the TCC community outcomes and all of the Council commitments. Through the provision of BVL venues, programmes and services TCC will significantly improve the health and wellbeing of the community in conjunction with promoting the economic and general wellbeing of the region.

Table 4: BVL Contribution to Community Outcomes

Community Outcome BVL Contribution:

 BVL’s aquatic facilities are major users of water. Our maintenance and renewals programme aims to minimise failures that impact on water use

 Through our maintenance and renewals programme BVL considers introducing more energy efficient components where appropriate

 BVL endeavours to minimise waste

 BVL endeavours to make the best use of limited resources in our venues

 Some BVL venues use water efficient plumbing fixtures

 BVL will propose and develop new facilities to meet future needs of the community

 BVL will be recognised as a thought leader and facilitator in relation to planning and funding recreational infrastructure in Tauranga

 BVL venues and services contribute to residents having a strong sense of place and identity

 BVL venues, programmes and services promote enhanced lifestyle, amenity and liveability

 BVL respects local identity and cultural heritage

 BVL plans the development of our venues and programmes as part of a network that is flexible and can respond to change over time and cater for the needs of the current and future community

 BVL venues and programmes contribute not only to individual wellbeing but also help create community cohesion and identity

 Our facilities are well looked after, well-maintained and well-presented

 BVL venues, programmes and services help enable a vibrant visitor economy in Tauranga

 BVL provides venues that visitors expect of an international quality city

 People are able to use and enjoy BVL venues, programmes and services

 The potential of our current facilities is optimised

 There is a wide range of activities happening in BVL venues that attract business, locals and visitors

 BVL provide a range of products and experiences that optimise the utilisation of our resources

18-28 Bay Venues Ltd Asset Management Plan Page 31 of 143 Community Outcome BVL Contribution:

 Our facilities provide a safe environment for staff and visitors

 BVL venues, programmes and services contribute to the wellbeing of the community

 BVL venues provide places for people to meet

 BVL venues, programmes and services contribute to community pride and belonging

 BVL venues provide opportunities for community engagement

 BVL venues and programmes help support our community to be healthy and active by providing places and programmes for sport and recreation

 BVL venues support safe an resilient communities, including through our role in civil defence

 BVL venues support strong, successful sports and community groups that are meeting people’s needs

 Our venues and programmes motivate and encourage people to actively participate

 To minimise impacts on the transport network BVL requires and implements traffic management plans for events and activities which will result in a certain number of vehicle movements

 BVL supports alternative means of transport to our venues e.g. by providing cycle racks at our venues and working with partners regarding bus or other alternative transport options to venues and events

18-28 Bay Venues Ltd Asset Management Plan Page 32 of 143 2.2 Rationale for Council’s Involvement TCC has identified, through its Letter of Expectation to BVL that it funds BVL to deliver community- related outcomes, which apply to all activities that are considered to have a community focus, under the following three areas:  Accessibility - our community facilities must be: maximised for a variety of purposes, responsive to community needs, and as accessible to as many people from Tauranga City as possible.  Levels of Service - our community facilities must be safe, welcoming, and well maintained, while delivering customer-focused service, to ensure positive experiences and high levels of satisfaction for the community.  Programmes and Services - our community facilities must be optimised through the delivery of a range of programmes and services in order to help off-set operating costs, fill underutilised spaces, and provide positive community outcomes. The value of BVL assets and facilities are recognised for the experiences they offer to the community, and the contribution they pay to the health, wellbeing and vitality of the city, attracting visitors that provide economic benefits, and enhancing the environment. This plan has been developed on the basis that TCC intends to be responsible for BVL activities for Tauranga City, and considers the provision of BVL facilities to be an essential function of Council.

Our facilities include Baypark Stadium and Arena, Aquatic Venues, Indoor Recreation Venues, Community Halls and Centres and the Adams Centre. These facilities are public access facilities for the community to allow and encourage participation, through the provision of and interaction in a range of sport, social, cultural, community, recreation and leisure opportunities. They also provide access to information, knowledge and other such services.

The following issues influence the strategic direction of providing Community Use Buildings:

 Specification of the minimum quality of the facilities provided considering both condition and performance criteria and in line with other New Zealand Local Authorities.

 The community’s satisfaction with the provision of the physical asset and the facilities services provided.

 Community’s expectations on the provision of facilities for community interaction and involvement.

2.2.1 BVL and the Significance Policy Section 90 of the Local Government Act 2002 requires each Council to adopt a Policy on Significance. TCC currently has a significance policy that complies with the LGA. Council will use the following general approach to identify the significance of any issue, proposal or decision by judging the likely impact of any decision based on:

 The likely impact/consequences of the decision or proposal on the current and future social, economic, environmental, or cultural well-being of the district or region.

 The persons who are likely to be particularly affected by, or interested in, the issue, proposal, decision, or matter.

 The likely impact/consequences of the decision or proposal from the perspective of those parties.

 The financial and non-financial costs and implications of the decision or proposal having regard to Council’s capacity to perform its role.

18-28 Bay Venues Ltd Asset Management Plan Page 33 of 143

The TCC Lead Policy - Significance and Engagement Policy (2014) identifies the following BVL assets as strategic assets:

 Aquatics network,

 Baypark Arena,

 Baypark

 Indoor facilities (Indoor Recreation, Hall and Community Centre Venues)

2.2.2 Strategic Assets The Local Government Act 2002 (Section 97) requires that this policy shall identify all of the assets the Council considers to be strategic, as defined in Section 5 of the Local Government Act 2002. Council has determined the BVL facilities as a whole, to be strategic in nature. Any decision to transfer ownership or control of a strategic asset or a decision to construct, replace or abandon a strategic asset cannot be made unless it has first been included in the LTP (and in a statement of proposal relating to the LTP). All such actions relating to a strategic asset are automatically significant and must meet the requirements relating to significant decisions with the LGA, specifically Part 6, section 90. 2.3 Key Partnerships & Stakeholders

2.3.1 Key Partnerships BVL is committed to working closely with TCC, its neighbouring councils and other businesses. BVL seeks the following advantages of these partnerships:

 A wider pool of knowledge, skills and contacts, which allows for creative brainstorming.

 Additional benefits from the combination of complementary skills.

 Attract and retain skilled employees.

 A higher ability to raise funds.

 Moral support in a crisis.

Tauranga City Council (TCC) BVL is a CCO under the LGA with TCC being the only shareholder. They are bound through a statement of intent and share the same community outcomes. BVL works with TCC’s Councillors, Committees, CEO and staff in various departments including: Parks and Recreation, Regulatory Services, Asset Management, Finance and Corporate Planning. Bay of Plenty Regional Council (BOPRC) TCC currently works in partnership with BOPRC to deliver the SmartGrowth Strategy, the Regional Land Transport Strategy and Tauranga Tomorrow. BVL also holds resource consents for various activities with BOPRC. Communication with BOPRC Consent Officers is based on knowledge sharing. Western Bay of Plenty District Council (WBOPDC) TCC currently works in partnership with WBOPDC to deliver the SmartGrowth Strategy. The WBOPDC / TCC Joint Committee also work in partnership to develop opportunities for joint service delivery and to oversee joint activity

18-28 Bay Venues Ltd Asset Management Plan Page 34 of 143 BVL uses SmartGrowth to inform our planning for future facility needs.

Other BVL Key Relationships and Partners

 TECT - Tauranga Energy Consumer Trust

 University of Waikato

 Northern Arena

 High Performance Sport NZ

 NZ Rugby

 Swimming NZ

 Surfing NZ

 Sport NZ

 Sport Bay of Plenty

 Creative Bay of Plenty

 Priority 1

 NZRA - NZ Recreation Association

 CINZ - Conventions and Incentives New Zealand

 Concert Promoters

 MBIE - Ministry of Business, Innovation and Employment

 NZTA - NZ Transport Agency

 Audit New Zealand

2.3.2 External Stakeholders  The community – citizens and ratepayers

 Ratepayers Associations / Community Groups / Iwi Groups / Environmental groups

 Local Sports Users / Local Sport Clubs / Swimming Clubs

 Local Business / Local Schools

 Emergency service providers (Police, Ambulance, Fire, Civil Defence)

 Utility companies – power (generation, transmission, distribution), gas, communication

 Professional Service Providers / Contractors

 Government agencies

2.3.3 Internal Stakeholders

 Board and CEO

 Venues and Programmes

 Commercial

 Strategy & Adams Centre

 Business Performance

 Human Resources

18-28 Bay Venues Ltd Asset Management Plan Page 35 of 143 2.4 Business Drivers Levels of Service, Health and Safety, Statutory Requirements, National Standards, Bylaw Policies and Strategies define the business drivers for the current operation of BVL. These are overviewed in the following section.

2.4.1 Delivery of BVL Services Levels of Service (LoS) define the levels to which Tauranga City, and BVL on its behalf, provides services to the community. Some are defined by statutory requirements, others in conjunction with the community, and some with key stakeholders. These levels of service provide a basis for determining whether assets need to be constructed, replaced, remanufactured, upgraded or maintained. These are supported by performance measures that have been defined to enable BVL performance to be measured and reported against. These are covered in detail in the Levels of Service section of this Plan.

2.4.2 Health and Safety BVL’s Health and Safety Policy is the corporate tool to provide a healthy and safe work environment. It promotes and fosters continuous improvement and a positive safety and health attitude in managers, supervisors, employees, individuals gaining work experience, volunteers, contractors, customers and the public both in and near places of work controlled by BVL.

2.4.3 Statutory Requirements Statutory requirements essentially set the minimum requirements for some levels of service that must be provided. The key legislation and regulations relevant to the management of BVL assets are: Local Government Act 2002 & Local Government Act 2002 Amendment Act 2014 The Local Government Act 2002 (LGA) is based on a sustainable, effective, responsible, responsive and accountable local government which plays “a broad role in meeting the current and future needs of their communities for good-quality local infrastructure, local public services, and performance of regulatory functions”. The LGA outlines the responsibilities of local government and the decision making process for activities undertaken on behalf of the community, primarily through the adoption of the LTP. The LTP identifies all Council activities, including BVL services and prioritises projects for future development based on the expectant outcomes of the community. Section 11A of the LGA identifies the “Core services to be considered in performing role” including “(e) libraries, museums, reserves, and other recreational facilities and community amenities.” Part 5 and Schedule 9 of the LGA outlines the responsibilities of a CCO. Part 5 identifies the principal objective of a CCO is to: (a) Achieve the objectives of its shareholders, both commercial and non-commercial, as specified in the statement of intent; and (b) Be a good employer; and (c) Exhibit a sense of social and environmental responsibility by having regard to the interests of the community in which it operates and by endeavouring to accommodate or encourage these when able to do so; and (d) If the council-controlled organisation is a council-controlled trading organisation, conduct its affairs in accordance with sound business practice.

Civil Defence Emergency Management Act (CDEM) 2002 The CDEM Act 2002 ensures that New Zealand has the resources to manage disasters. The Act requires:

18-28 Bay Venues Ltd Asset Management Plan Page 36 of 143  Tauranga City and other district and city councils in the region to form a Civil Defence and Emergency Management Group (CDEM Group).

 To develop a Civil Defence Emergency Management Plan that identifies risks from hazards and puts readiness, response and recovery procedures in place. The Plan is developed with public input to ensure hazards and risks are dealt with to a level accepted by the community. Baypark Stadium is a Tsunami evacuation zone and the Baypark Arena is a secondary assembly area under the Bay of Plenty CDEM Plan.

Health and Safety at Work Act 2015 The guiding principle of the HSWA is that workers and other persons should be given the highest level of protection against harm to their health, safety and welfare from work risks as is reasonably practicable.

Rating Powers Act 1988 The Local Government (Rating) Act 2002 replaced the Rating Powers Act 1988 with updated and streamlined rating powers. The intention is to ensure that the community has the opportunity to be well informed about what its money is being spent on, and to express its views when major decisions are being made. The three main purposes of the Act are to:

 Provide local authorities with flexible powers to set, assess and collect rates

 Ensure that rates reflect decisions made in a transparent and consultative manner

 Provide for processes and information to ensure that ratepayers can identify and understand their liability for rates.

Building Act 2004 In New Zealand, the building of houses and other buildings is controlled by the Building Act 2004. It applies to the construction of new buildings as well as the alteration and demolition of existing buildings. The Building Act 2004 has repealed the Building Act 1991 and introduces a number of changes to the law governing building work.

Other various sections of legislation, regulations and guidelines of particular relevance to BVL include:

 Fire Services Act (2017)

 Consumer Guarantees Act (1993)

 Food Act (2014)

 Commerce Act (1986)

 Fair Trading Act (1986)

 Employment Relations Act (2000)

 Holidays Act (2003)

 Privacy Act 1993

 Hazardous Substances And New Organisms Act 2004

 Building Amendment Act (2012)

 Sport & Recreation New Zealand Act 2002

18-28 Bay Venues Ltd Asset Management Plan Page 37 of 143  The Reserves Act 1977

2.4.4 Specific Requirements for Asset Management Planning The Local Government Act 2002 (LGA 2002) has brought about some significant changes to the way councils operate, with a focus on community consultation and participation and the promotion of social, economic, environmental and cultural wellbeing of communities in the present and in the future. Schedule 10 of the LGA 2002 covers specific requirements relating to Long Term Planning and therefore Asset Management with a strong emphasis on the following:

 Levels of Service (LoS) – Intended LoS performance targets and other measures by which actual LoS provision may be meaningfully assessed, and the estimated costs of achieving and maintaining identified LoS, including sources of funding. Section 4 of this AMP covers this in more detail.  Demand – In relation to estimated additional capacity and the associated costs and funding sources, including maintenance renewal and upgrades. Section 5 of this AMP covers this in more detail.

2.4.5 National Standards The national standards with direct relevance to BVL activities include the following:

 NZS 5826:2010 Pool Water Quality Standards

 NZS 4303:1990 Ventilation For Acceptable Indoor Air Quality

 NZRA Poolsafe

 NZS 8500:2006 Safety Barriers And Fences Around Swimming Pools, Spas And Hot Tubs

 NZS 4441:2008 Swimming Pool Design

 AS/ NZS 3500.1 (2003) National Plumbing And Drainage – Water Services (Part 1)

 AS/NZS 3500.2:2015 Plumbing and Drainage Part 2: Sanitary plumbing and drainage

 Various Standards For Water Supply Materials And Fittings

 NZS 4121:2001 Design for access and mobility: Buildings and associated facilities

 Moh: Drinking-Water Standards For New Zealand (2005)

 New Zealand Fire Service Code Of Practice

 National Guidelines For Health And Safety In the New Zealand Water Industry

2.4.6 Policies, Strategies, Plans and Guidelines TCC has developed various policies and works in partnership with other agencies, to fulfil its role and align its activities to other agencies and organisations throughout the region. This means that in establishing its programmes, BVL must be aware of the following policies (Table ), strategies (Table ), plans (Table ) and guidelines (Table ).

Table 5: Policies

Policy Name

National Policies

Department of Children and Youth Affairs “The National Recreation Policy for Young People”

BVL Policies

BVL Procurement Policy

18-28 Bay Venues Ltd Asset Management Plan Page 38 of 143 Policy Name

Waste Minimisation Policy

Renewals and New Capital Recording Procedure

Health & Safety

TCC Policies

Community Engagement

Commercial Activities in Council Facilities

Events

Levels of Service

Prioritising use of Indoor Facilities

Revenue and Financing

Sale of Liquor

Significance

Smokefree Places

Sportville

Table 6: Strategies

Name

National Strategies

Sport NZ “Group Strategic Plan 2015-2020”

Sport NZ “Community Sport Strategy 2015-2020”

High Performance Sport New Zealand Strategy 2017–2020”

Sport NZ “Better Value From New Zealand Sporting Facilities – The New Zealand Sporting Facilities Framework”

Sport NZ “National Facilities Strategy for Indoor Sports” - May 2014

Sport NZ “National Facilities Strategy for Aquatic Sports” – August 2013

Joint Strategies

SmartEconomy

SmartGrowth

SmartTourism

Bay of Plenty Spaces and Places Strategy 2017

Western Bay Events Strategy 2009-2014

BVL

BVL Strategic Plan 2018

TCC Strategies

Sport and Active Living Strategy 2012

Aquatics Strategy 2012

18-28 Bay Venues Ltd Asset Management Plan Page 39 of 143 Name

Age-Friendly Strategy

Disability Strategy

Elders' Strategy 2008

Tauranga Transport Strategy

Our Community Places Strategy 2008

Open Space Strategy 2006

Table 7: Plans

Name

Regional Plans

BOPRC Regional Plan

Regional Water and Land Plan 2008

Regional Air Plan 2003

Iwi and Hapu Management Plans

TCC Plans

Long Term Plan

Annual Plan

Tauranga City Plan

Pandemic Plan

Reserve Management Plans

Table 8: Guidelines

Name

TCC Guidelines

Hazardous Substances Guidelines

Stormwater Management Guidelines

Other Guidelines

New Zealand Recreation Association (NZRA) “Aquatic Facility Guidelines 2010”

Sport NZ “Community Sport and Recreation Facility Development Guide”

Sport NZ “Accessibility Design Guide and Checklist”

Sport NZ “Guidelines for Aquatic Flooring Surfaces”

18-28 Bay Venues Ltd Asset Management Plan Page 40 of 143 2.4.7 Bylaws The LGA requires TCC to review its bylaws periodically. TCC’s programme for reviewing its existing bylaws is ongoing. TCC will always consult with the local community before adopting any new bylaw or reviewing an existing bylaw. Bylaws influencing BVL activities are shown in Table 9.

Table 9: Bylaws

Bylaw

TCC Bylaws

Freedom Camping Bylaw 2013

Liquor-Free & Vehicle-Free Zones in Public Places Bylaw 2013

Public Health Bylaw 2008

Storm water (Pollution Prevention) Bylaw 2010

Street Use & Public Places Bylaw 2013

Trade Waste Bylaw 2008

Traffic and Parking Bylaw 2012

Waste Management and Minimisation Bylaw 2012

18-28 Bay Venues Ltd Asset Management Plan Page 41 of 143 3 Business Overview 3.1 Delivery of BVL Services BVL Limited is a CCO, which was set-up on 1 July 2013. BVL’s core business is venue ownership and management, and the operation of venues based businesses, programmes and services including events. Our facilities include Baypark Stadium and Arena, Aquatic Venues, Indoor Recreation Venues, Community Halls and Centres and the University of Waikato Adams Centre for High performance (Adams Centre). These venues and associated assets were taken over either directly from Council or from TCVL and TCAL (merged CCO entities). BVL owns 18 facilities comprising five aquatic facilities, a Stadium and Speedway, one large contemporary multi-purpose recreation and event centre, two indoor recreation facilities, two community centres, five community halls, a high performance centre and the Baypark Pavilions. BVL also manages two community share indoor recreation facilities and four community halls owned by TCC or schools. BVL owns and manages an asset portfolio worth approximately $111 Million6 and employs over 340 full time, part-time, fixed term and casual staff. Due to the nature of BVL’s operations the majority of staff are part time or casual employees. BVL's mandate is to manage and operate the venues in a sustainable and safe way while providing customer focussed service and a range of programmes and services, to ensure positive experiences and high levels of satisfaction for Tauranga residents and visitors now and in the future. The value of BVL assets and facilities are recognised for the experiences they offer to the community, and the contribution they pay to the health, wellbeing and vitality of the city, attracting visitors that provide economic benefits, and enhancing the environment.

3.2 Revenue, Funding & Expenditure

3.2.1 Revenue BVL have consistently grown operating revenue over the 2013 – 2017 period. As shown in Table 10 below. The main revenue sources for BVL (in order of value) in 2017 were: Events & Catering; Aquatics; TCC Community Subsidy; Memberships; Indoor Facilities7.

6 Based on 2015 valuations. 2018 valuations not complete at time of printing 7 As per the BVL Financial Statements for the Year Ended 30 June 2017

18-28 Bay Venues Ltd Asset Management Plan Page 42 of 143 Table 10: Revenue 2013 – 2017 (Source: BVL Financial Statements for the Year Ended 30 June 2017)

The growth in operating revenue over the period is linked with consistent growth in visitation across the network of BVL facilities over the 2013 – 2017 period. As shown in Table 11 below.

18-28 Bay Venues Ltd Asset Management Plan Page 43 of 143 Table 11: Total Network Visits 2013 – 2017 (Source: BVL Financial Statements for the Year Ended 30 June 2017)

3.2.2 Funding The operations are generally funded via user charges from private and commercial users. Some aspects of the activity can also attract sponsorship, subsidies and grants, as well as other sources of revenue. Capital works are funded via loans from TCC.

18-28 Bay Venues Ltd Asset Management Plan Page 44 of 143 3.2.3 Expenditure

Table 12: Operating Expenses 2013 – 2017 (Source: BVL Financial Statements for the Year Ended 30 June 2017)

The operational expenditure of BVL is a function of the overall asset replacement costs, their age and condition, meeting the agreed LoS and resource consent conditions governing the activity. In Tauranga, capital expenditure is largely driven by the requirements to provide new infrastructure or upgrade the existing infrastructure to meet growth needs or increase the LoS. As BVL’S assets age, the requirement to replace parts of them due to condition, rather than capacity is becoming more important.

Table 13: Statement of Comprehensive Revenue and Expenses for Year Ended 30 June 2017

2017 ($000’s) Operating Revenue User Revenue 17,782 Other Income 187 TCC Capital Funding 35 TCC Operational Grant 2,556 TCC Depreciation Grant 520 TCC Renewal Funding 3,053 Total Operational Revenue 24,133

Operating Expenditure Employee Expense 9,819 Administrative Expense 1,244 Consulting & Governance Expense 510 Operating Expense (incl. COGS) 7,823 Repairs and Maintenance Expense 676 Joint Venture Commission 25 Finance Costs 636 Depreciation & Amortisation Expense 5,822 Total Operating Expenditure 26,555

Surplus / (Deficit) before Tax (2,422)

18-28 Bay Venues Ltd Asset Management Plan Page 45 of 143 Income Tax (Expense) / Benefit 398 Surplus / (Deficit) after Tax (2,024) Total Comprehensive Income for the Year (2,024) Source: BVL Financial Statements for the Year Ended 30 June 2017

3.3 BVL in Tauranga The purpose of Baypark Stadium (Stadium and Arena) is:

 To provide and manage the facilitation of recreation at the Baypark site for people to participate, interact and enjoy a diversity of sport, recreation and leisure opportunities. This involves:

 providing Baypark Stadium facilities for a range of sport and recreational events

 managing bookings for facilities

 providing physical and technical events support

 providing an event facilitation service and equipment

 assisting with event delivery

 providing Catering

 providing Lighting, Sound and Audio Visual Services

 providing the BayActive programme (e.g. sport leagues, centre run programmes)

 providing the BayKids programme (e.g. holiday and pre-school activities, birthday parties)

The purpose of the Aquatic Venues is:

 To assist with the facilitation of aquatic and associated recreation throughout the city in places and spaces for people to participate, interact and enjoy a diversity of aquatic sport, recreation and leisure opportunities. This involves:

 providing five aquatic facilities

 managing lane bookings for facilities

 providing an event facilitation service

 assisting with event delivery

 providing health and fitness facilities (e.g. Clubfit)

 providing the AquaActive programme (e.g. aqua aerobics, aqua jogging)

 providing the BaySwim programme at Baywave and Greerton

 providing the Little Splashes Childcare Centre at Baywave

18-28 Bay Venues Ltd Asset Management Plan Page 46 of 143 The purpose of Community Halls and Centres is:

 To provide clean and safe facilities which are suitable for an array of community groups, activities and meetings This involves:

 Providing five community halls and three community centres for a range of community uses

 managing bookings for facilities

 providing the BayKids programme (e.g. Holiday and after-school programmes) The main activities which use community halls and centres include:

 fitness and dance classes, drama groups and church activities

 fitness and leisure activities

 art and craft pursuits

 meetings for a variety of groups ranging from social services to sport and recreation groups and businesses

 private functions such as weddings, birthdays and fundraising events

The purpose of Indoor Recreation Venues is:

 To provide indoor spaces in which the community can undertake sport and recreation activities and events This involves:

 Providing two facilities for indoor sports, recreation and events

 managing bookings for facilities

 providing the BayKids programme (e.g. Holiday and after-school programmes, Tumble Time)

 assisting with event delivery The main activities which use indoor recreation venues include:

 sporting tournaments and trainings

 fitness and leisure activities

 art and craft pursuits

 community meetings and social gatherings

 events and expos

The purpose of the Adams Centre is:

 To provide a Centre of Excellence for High Performance Sport at a regional and national level.

 To provide a service and training base for high performance athletes This involves:

 Providing a high performance gym and recovery pools

 Managing tenancies with Bay of Plenty Rugby Union, NZ Rugby, University of Waikato and Body In Motion Sports Medicine

 Providing sports science and research services

 Providing an athlete lounge, a fully equipped kitchen and team meeting room.

18-28 Bay Venues Ltd Asset Management Plan Page 47 of 143 3.4 Significant Negative Effects of this Activity Schedule 10 of the LGA covers the information required to be included in the Long Term Plan (LTP). Part 2 (1) (c) states that a LTP must in relation to each group of activities of the local authority: “(c) Outline any significant negative effects that any activity within the group of activities may have on the local community” This sub-section provides information in accordance with this legislative requirement. The purpose of identifying significant negative effects is to ensure that BVL activities are conducted in accordance with the principles of sustainability. The possible negative effects are outlined in the table below:

Table 14: Significant Negative Effects

Significant Negative Effect Mitigation of Negative Effects Cultural Social Economic Environmental

Health and safety risks x x Adhere to NZ standards (e.g. Building Code). associated with the operation. Compliance with H&S regulations, on-going training and provision of competent staff. On-going monitoring, hazard assessments and review of management agreements related to the network of facilities. Costs of potential claims are minimised through undertaking appropriate risk identification and mitigation measures.

Risk of patrons drowning or x Adhere to PoolSafe standards including the employment of suitably qualified lifeguards suffering physical harm. at the required levels. Compliance with Pool Safe accreditation, on-going training and provision of competent lifeguards. Regularly assess and appropriately manage hazards at all facilities.

Noise from events or activities x x Have appropriate opening and closing hours for facilities to reduce noise/traffic effects. causing disruption to residential areas. Require resource consents for events or activities which are likely to be outside City Plan standards for noise. Ensure appropriate acoustic treatments are provided when designing and constructing new facilities. Managing facility use to ensure activities with high noise potential are directed to the most appropriate venue

Traffic from events or activities x BVL cannot mitigate all of the impact of events traffic. causing disruption to the roading network. However, traffic management plans can be required for events and activities which will result in a certain number of vehicle movements. Provide for alternative means of transportation to venues e.g. buses, walking, cycling options.

Increased parking congestion. x Ongoing parking monitoring and control. Community consultation. Provide for alternative means of transportation to venues e.g. buses, walking, cycling options.

Fees may prevent some public BVL will continue to consult with the community over fees. using the facilities. Manage cost of operation through rationalising works programmes, working with other partners and stakeholders to secure funding and understanding the long term maintenance and renewal requirements.

High energy use to run the x x Maintenance and renewals programmes to consider, and if appropriate, progressively facilities. introduce more energy efficient components. Investigation of sustainable energy sources and implementation of suitable solutions.

18-28 Bay Venues Ltd Asset Management Plan Page 48 of 143

Significant Negative Effect Mitigation of Negative Effects Cultural Social Economic Environmental

High water usage. x x Routine monitoring and maintenance to address leakage. Use of water-efficient plumbing fixtures.

Discharges of chlorinated x Maintenance and renewals programmes to minimise failures. Compliance with water to waterways from Operations Management Plans and resource consents maintenance activities or pipe failures. Standard operating procedures and emergency response plans. Accidental spillage or x Ensure that chemicals are stored correctly and HSNO chemical handling standards are unintentional release of followed. chemicals used for water quality dosing.

Anti-social behaviour in and x Follow Crime Prevention Through Environmental Design (CPTED) guidelines to around the facilities. mitigate undesirable behaviours. Appropriate use of CCTV footage to follow up on incidents with appropriate organisations i.e. NZ Police

Graffiti and vandalism of the x Follow Crime Prevention Through Environmental Design (CPTED) guidelines to facilities. mitigate undesirable behaviours. Prompt removal of graffiti and repairs to vandalism to discourage further incidents. Appropriate use of CCTV footage to follow up on incidents with appropriate organisations i.e. NZ Police

The significant negative effects identified above can be managed and/or mitigated by effective risk management, options assessments and operational procedures.

18-28 Bay Venues Ltd Asset Management Plan Page 49 of 143

3.5 Organisational Structure

Figure 7: BVL Organisational Structure July 2018

18-28 Bay Venues Ltd Asset Management Plan Page 50 of 143 The table below shows BVL roles and responsibilities regarding Asset Management.

Table 15: BVL Roles and Responsibilities

Party Role Specific Responsibilities BVL Board & CEO Strategic direction  Alignment of LTP and AMP

 Alignment of AMP with activity and strategic plans.

 Monitoring asset performance

 Overall asset management responsibility

Business Performance Manager Head of Business Performance Team  Financial monitoring of capital projects

 Implementation of capital projects within department Commercial Manager Head of Commercial Team  Financial monitoring of capital projects within department

Venue & Programmes Manager Head of Venue & Programmes Team  Implementation of capital projects within department

 Financial monitoring of capital projects within department

Asset & Project Manager Day to day operations and maintenance  Day to Day Operation of buildings owned by this Activity.  Planned Maintenance

 Unplanned Maintenance

 Contract Management

Development of Asset Management  Revision of AMP format Plan  Co-ordinate updates of AMP

 Co-ordinate external review of AMPs

 Maintain up to date knowledge on advancing AMP methodologies and technologies.

Venue Managers Part of Venue & Programmes Team  Budget Control Responsible for asset issues related to  Performance Monitoring the network  Asset identification and update

 Condition Assessment

 Renewal & capital programming

 Service level assessment

 Risk Management

18-28 Bay Venues Ltd Asset Management Plan Page 51 of 143 4 Levels of Service 4.1 Overview Asset management planning enables the relationship between levels of service (LoS) and the cost of the service (price/quality relationship) to be determined. This relationship is then evaluated in consultation with the community to determine the LoS they are prepared to pay for. Levels of service are key business drivers, which influence all asset management decisions. Defined LoS can be used to:

 Inform customers of the proposed LoS

 Develop asset management strategies to deliver LoS

 Measure performance against defined LoS

 Identify the costs and benefits of services offered

 Enable customers to assess core values (surrounding?) accessibility, quality, safety, and sustainability

 In this context LoS define the quality of delivery for a particular activity or service against which performance can be measured 4.2 LGA 2002 Requirements The LGA has prescribed that LoS must now be developed from a community perspective. This is a fundamental change in the traditional approach. Historically, LoS have been expressed in a technical way that describes what Council has expected from its service providers (e.g. contractors). These need to be presented to the community in a clear, informed way as ‘customer levels of service’, and consultation must be used to obtain the ‘community perspective’.

4.2.1 Developing Levels of Service Part 1, Section 4 of the LGA provides some specific requirements for the development of LoS as follows:

 statement of intended LoS provision for the programme including performance measures

 performance measures and targets that will enable the community to assess the LoS for major aspects of the service that have not already been set as standard measures

 a summary of any material changes to the cost of providing the service and the associated reasons for the change

4.2.2 Levels of Service Decision Making Process Section 76-81 of the LGA states the way in which LoS are developed within the decision-making process:

Section 76 Decision Making

Section 77 Requirements in relation to decisions

Section 78 Community views in relation to decisions

Section 79 Compliance with procedures in relation to decisions

Section 80 Identification of inconsistent decisions

Section 81 Contributions to the decision-making process by Māori

18-28 Bay Venues Ltd Asset Management Plan Page 52 of 143 4.2.3 Levels of Service Reporting The LGA states the way in which LoS must be reported in the Annual Report including the following:

 reporting the results of any measurement undertaken during the year of progress toward achievement of Community Outcomes to which a group of activities contributes

 include in an audited statement a comparison between the actual service provisions and the intended LoS (as per the LTP) for groups of activities

 include in the audited statements the reasons for any significant variance between the actual service provision and the expected service provision

4.2.4 Changes in Levels of Service A change in LoS will either be reflected as a requirement to increase or decrease the LoS. Any change will need to be consulted on with key stakeholders and the community. The outcomes will then be incorporated into the decision making process. 4.3 Levels of Service Relationship to Asset Management Planning

4.3.1 Levels of Service Delivery Process TCC aims to meet the adopted LoS for BVL activity through a combination of infrastructure provision, maintenance and demand management techniques.

4.3.2 Levels of Service Development Process A three-yearly contract for the Supply of Services including performance measures is entered into between TCC and BVL Ltd.

4.3.3 Establishing Customer Values Customer Values provide the cornerstone to the development of LoS from both a customer and technical point of view. The customer values considered to be important for the BVL activity are as follows:

 Accessibility  Health & Safety

 Affordability / Cost  Quality / Quantity

 Customer Service  Reliability / Responsiveness

 Efficiency / Sustainability  Social benefits to the whole community Source: NAMS, Developing LoS and Performance Measures, IIMM 2011

18-28 Bay Venues Ltd Asset Management Plan Page 53 of 143 Furthermore, BVL established the following core values to underpin its organisation and reflect the behaviours that shape how BVL staff work with each other, and interact at every touchpoint with their customers and community partners on a daily basis.

Respect – Engage – Invigorate Desire for excellence will invigorate and engage our customers and community. Approach everything you do with mad passion, obsession for detail, and professionalism.

Teamwork – Trust – Interpersonal savvy United we will succeed, overcoming adversity through relentless trust and support for each other. Our shared vision gives us greater power.

Innovation – Continuous Improvement We will open our minds to new opportunities and dare to dream. By continuously developing we will be leaders in our fields.

Transparency – Integrity – Communication Integrity will earn us respect. Know yourself and your team and always be open and honest.

Leadership – Attitude & Motivation Lead and learn every day. Challenge yourself and your peers in everything you do. Support, respect and reward those who deserve a big ‘thank you’.

4.3.4 Activity Strategic Outcomes Work has been undertaken to develop Activity Strategic Outcomes for BVL. The Activity Outcomes developed with the LoS represented in the AMP are described as follows and align with the Customer Values.

Table 16: Customer Values and Activity Strategic Outcomes

Customer Value (NAMS) Activity Strategic Outcomes

Accessibility / Affordability  The Community has access to and enjoys BVL facilities at an affordable cost.  The provision of a range of services and facilities that enable use by a wide range of the population.  The community is provided with access to facilities that are well maintained.  Buildings and associated facilities support disabled access requirements. Customer Service /  Decision- making processess are transparent and easily understood and, enabling community Reliability / participation. Responsiveness  Effective communication with customers.  Customers are treated in a fair, respectful and responsive manner.

Efficiency / Sustainability /  Values are identified, protected and enhanced. Social benefits to the  whole community Providing community facilities to promote opportunities for recreation, social and educational activities  maintaining venues for current and future residents and visitors.

18-28 Bay Venues Ltd Asset Management Plan Page 54 of 143 Health & Safety  Facilities minimise Health and Safety Risks.

Quality / Quantity  Facilities are well maintained and of sufficient capacity.

4.4 LoS, Performance Measures and Performance Target TCC may update its LoS from time to time. The BVL AMP will be updated, as required to align with LoS changes. The following figure shows the 2016/17 BVL performance against targets as reported in TCC’s annual report

Figure 8: BVL Balanced Scorecard Report 2016/17

18-28 Bay Venues Ltd Asset Management Plan Page 55 of 143 4.5 LoS, Customer Satisfaction Survey June 2017 Figure 9 shows the June 2017 customer satisfaction survey results by the BVL network as a whole and broken down to Indoor Recreation Facilities and Aquatic Facilities.

Figure 9: Customer Satisfaction Survey Results June 2017 (Source: Delve Research Report to BVL 2017)

The June 2017 results show that general satisfaction with LoS is above the 85% target contained in the TCC and BVL SLA. Figure 10 shows the outcome of four years of customer satisfaction surveys at four key facilities in the BVL network.

Figure 10: Customer Satisfaction Survey Summary Chart 2014 – 2017 (Source: Delve Research Report to BVL 2017)

18-28 Bay Venues Ltd Asset Management Plan Page 56 of 143 The above figures show that general satisfaction with LoS at these key facilities is above 75%. The Baypark (ASB) Arena was the only facility to reach a quality rating of 95% in 2017.

The following figures indicate what the survey participants use the facilities for.

Figure 11: Aquatic Use Types by Facility (Source: Delve Research Report to BVL 2017)

Pool usage is consistent with prior surveys with 76% of Baywave visitors there to swim (learning, training or recreationally). The high learn to swim usage results for Greerton reflect that learn to swim customers were emailed to complete the survey. 60% of Hot Pools customers are soakers.

Figure 12: Baypark (ASB) Arena and Arataki Community Centre Use Types (Source: Delve Research Report to BVL 2017)

Baypark (ASB) Arena is used for a number of sports activities – basketball, tumbletime and netball are key. There are a myriad of activities available, and being used, at Arataki.

18-28 Bay Venues Ltd Asset Management Plan Page 57 of 143 5 Growth and Demand 5.1 Overview Although growth and demand are considered together in this section, it is worth noting that they do have different implications regarding the on-going function and delivery of BVL activity. This section describes the strategy that BVL will adopt to meet future growth and demand for its services. 5.2 BVL Usage – Historic Data This section shows the historical usage data of the network in order to understand what impact growth and demand might have on the future of BVL. Note: the statistics provided in this section include use of all facilities managed by BVL not just the facilities owned by BVL which are the focus of this AMP.

5.2.1 Network Usage Across the network of BVL managed facilities hours of use and visits per annum have shown consistent increases since BVL was established in 2013. Over the period hours of use have increased from over 75,000 hours in 2013/14 to over 97,000 hours in 2016/17 (28% increase) and user visits have increased from 1.6 million in 2013/14 to 1.9 million in 2016/17 (23% increase).

Table 17: Historic Use Data – 2013 - 2017

2013/14 2014/15 2015/16 2016/17

Use Hours per 75,299 80,916 84,738 97,081 annum

Visits per annum 1,606,937 1,696,714 1,853,508 1,990,560

Figure 13: Historical User Visits – 2013 – 2017 (Source: BVL Financial Statements for the Year Ended 30 June 2017)

18-28 Bay Venues Ltd Asset Management Plan Page 58 of 143

Figure 14: Hours of Utilisation by Venue Type 2017 (Source: BVL Financial Statements for the Year Ended 30 June 2017)

5.3 Growth Strategies

5.3.1 SmartGrowth Through a partnership with BOPRC, WBOPDC and Tangata Whenua, TCC has contributed to the sub- regional growth management strategy called SmartGrowth, a programme aimed at developing and implementing a plan for managing growth in the Western Bay of Plenty.

Figure 15: Smart Growth Strategy Areas (Source: Smart Growth Strategy 2013)

18-28 Bay Venues Ltd Asset Management Plan Page 59 of 143

5.3.2 Overview of Growth & Key Demand Drivers The key drivers influencing the growth and demand on BVL assets are summarised below:

 population projections

 residential, commercial and industrial development

 tourism

 changes in technology and community expectations

 climate change

 public and environmental health

 BVL charging and tariffs

 service provider (City Waters, Power, Telecommunications etc.) charging and tariffs

 legislative changes and requirements

 resource consent requirements

 improved usage efficiency

 need for quality improvements Some of these drivers are assessed in more detail throughout the following section, in an attempt to investigate the individual components which contribute to the demand on BVL activity as a whole. 5.4 Population Projections The following section investigates the demographics of the Tauranga region, to gain an understanding of the potential needs of the community and where services may be required in future as growth occurs in different areas.

5.4.1 Demographic Overview Tauranga is regarded as a highly desirable place to live and work. A significant portion of population growth is migration related; dominated by a desire for lifestyle change and the coastal environment. Tauranga’s usually resident population growth rate declined from an average 2.7% per annum between 2001 and 2006 to 1.4% between 2006 and 2013. This is considerably higher than the national average growth rate of 0.7% occurring between 2006 and 2013. Additionally, Tauranga experiences a significant seasonal increase in population over the summer months, centred on beach areas at Mt Maunganui and Papamoa. Table below provides a comparison of population across the city. The largest increase between 2006 and 2013 was 14.9% in Tauranga Central, followed by 13.5% in Papamoa.

Table 18: Population Changes

Growth Management 2001 Census 2006 Census 2013 Census % Change 2006/2013 Area

Tauranga West 28,510 30,946 32,892 6.3%

Tauranga Central 19,625 21,569 24,772 14.9%

Tauranga South 14,171 16,720 18,291 9.4%

Mt Maunganui 17,378 18,540 19,695 6.2%

Papamoa 14,401 19,056 21,630 13.5%

Total 90,825 106,831 117,280 9.8%

18-28 Bay Venues Ltd Asset Management Plan Page 60 of 143 * the 2011 March 8 Census was re-scheduled due to the Canterbury earthquake Smartgrowth population estimates at 30 June 2013 show Tauranga’ population at 117,280 people. Figure 16 below shows the Estimated Resident Population and Projected Baseline Population for Tauranga City (Source: SmartGrowth 2014 Review – Demographic and Employment Projections 2013 – 2063, NIDEA, University of Waikato, 2014). Tauranga’s usually resident population is predicted to grow to around 161,646 in 2033 (37.8 per cent) and reach 196,014 people by 2063 (a further 14.3 per cent).

Figure 16: Tauranga City Population Projection (Source: NIDEA, 2014)

Age Profiles Figure 17 shows the projected “Age-Sex Structure” for Tauranga City (Source: SmartGrowth 2014 Review – Demographic and Employment Projections 2013 – 2063), which indicates the changing population distribution by age and gender between 2013 (shaded) and 2033 (unshaded). As already seen in the last decade, the age profile of Tauranga’s population is changing. Tauranga in comparison with the national average has a slightly higher proportion of residents in the 65+ age.

Figure 17: Age-Sex Structure 1996-2006 (Source: NIDEA, 2014)

18-28 Bay Venues Ltd Asset Management Plan Page 61 of 143 5.4.2 Impacts on the BVL Activity and Management Strategy Changing lifestyle patterns and customer expectations create the need for leisure and recreation facilities to be adaptable and multi-purpose. For BVL this means that an aging population will demand a higher variety of sport and recreation activities and facilities suitable for older people. However, the participation rates in indoor sport decline as people get older. This presents a challenge, but also an opportunity for BVL to increase participation amongst the older age groups through the introduction of fitness equipment suitable for senior citizens, as well as age specific marketing. In order to encourage more diverse user groups, recreational equipment for children and young families should be acquired. The lifespan of such equipment is shorter than that of other sports equipment and funds need to be available for replacement. Furthermore, an increased cultural diversity may result in an increased demand for globally popular sports and/or currently minor or marginal sports. The financial pressure on individuals and sport clubs are likely to continue. For BVL, this means that the demand for organised recreation and sport may decline. The growth of casual or informal sport is likely, which may cause a gradual decline in club membership and volunteer numbers. This can place stress on BVL as an organisation, which relies heavily on casual workers and volunteers. 5.5 Residential, Commercial and Industrial Development

5.5.1 Residential Development, Commercial & Industrial Development Prediction

BVL was involved in the project team which developed the Bay of Plenty Spaces and Places Strategy 2017. The strategy provides a high-level strategic framework for regional sport and recreation spaces and places (facility) planning in the Bay of Plenty region. By working in a collaborative fashion, Sport Bay of Plenty, Sport New Zealand and the region’s territorial authorities have developed a strategic view of the regional priorities for future sport and recreation spaces and places.

5.5.2 Impacts on the BVL Activity and Management Strategy Key recommendations and actions from the Bay of Plenty Spaces and Places Strategy 20178 which may impact on BVL include:

 Develop a regional funding approach, including a regular funders forum, facility partnerships funding policy and funding MOU (between key partners)

 Using the strategy’s decision criteria, facility investment decision-making process, principles and priorities, develop a process by which Councils provide clear, consistent, annual funding priorities to community funders

 Engage with iwi to identify potential sport and recreation partnership opportunities across the region

 Develop a school partnerships framework to help inform facility planning with the Ministry of Education(MOE) The strategy also contains specific direction regarding proposed facility approaches by facility type which have direct relevance to BVL activities9. The strategy should be referred to when considering major renewals, redevelopments or new facilities to ensure these align with the proposed strategic approach. BVL also needs to be directly involved with TCC’s planning for sport, recreation and community provision in new growth areas.

8 Bay of Plenty Spaces and Places Strategy March 2017, Sport Bay of Plenty. 9 Ibid, appendix 1

18-28 Bay Venues Ltd Asset Management Plan Page 62 of 143 5.6 Changes in Technology and Community Expectations Environmental Awareness & Sustainability It is anticipated that the sustainability initiatives that have emerged internationally in recent years - resultant from concerns surrounding excessive demands on valuable resources - will be supported by residents in Tauranga, as they have been elsewhere. As part of the community’s increased awareness to environmental issues, it is likely that an improved use or re-use of water, energy savings and better waste management may become one part of sustainability initiatives the community demands. Changes in Technology The Energy, Water and Waste sector are widely affected by the cost of development pressures and environmental impacts, resulting in constant changes in technology which are designed to reduce costs to the end customer. For indoor and aquatic facilities these includes energy saving light fittings, waste minimisation and recycling as well as rainwater harvesting, water saving fittings and the recycling of mineral based water for swimming pools. The latter is explained further in detail below. In recent years the call for less aggressive water treatment options in family pools have resulted in the development of mineral treatment pools. The use of mineral based water in swimming pools has not only health benefits, but its recycled water can also be used to irrigate lawn and gardens. Many young families decide to let their kids enjoy mineral treated learning pools. Locally, the Liz van Welie Swim School uses MagnaPool technology. The business advertises itself as “…being the first commercial providers of Magnapool and Diamond Filtration in New Zealand (providing) a point of difference for people who care about their health and that of their children.” The business has grown rapidly since its establishment in 2011 and has expanding to a purpose-built learner pool for parents and babies, and a 25m swimming pool at Pyes Pa.

5.6.1 Impacts on the BVL Activity and Management Strategy BVL needs to undertake research into best practice and new technology to investigate energy and water saving options, as well as to engage external sustainability experts where required. 5.7 Climate Change The March 2004 amendments to the RMA 1991 required Councils to consider the effects of climate change. This is backed by conclusive evidence both nationally and internationally that the climate is changing, resulting in rising sea levels, increases in weather extremes, such as “Weather Bombs” (increased frequency of El Nino conditions) – more storms, intense rainfall, and flooding and drought, all of which impact on water quality and quantity, as well as the interactions between humanity and the physical environment. Traditionally, the Bay of Plenty has enjoyed being one of the sunniest places in the country. However, a recent review of the effect of climate change on the Bay of Plenty coastline (NIWA 2006) confirms that climatic variation could influence storm intensity, which may affect water supplies that are vulnerable to storm events, and increases in stream turbidity. TCC has resource consents in place to guide water usage throughout the city, which will restrict water usage during extended dry periods. However, planning for drought conditions is a driver for potential alternative supplies and growth in the water network. Furthermore, rising sea levels will limit growth along the coastal regions due to potential flooding and erosion, placing development pressure on inland areas.

5.7.1 Impacts on the BVL Activity and Management Strategy Climate change could result in the escalation of TCC’s water treatment costs resulting in increased

18-28 Bay Venues Ltd Asset Management Plan Page 63 of 143 water rates. As indicated above rainwater harvesting could become one of the options for all facilities to reduce the water usage from the municipal system. BVL may also need to investigate possible use of a better drainage system to overcome flooding issues (at some facilities) as a result of climate change. 5.8 Legislation/Regulations There are a number of key regulations or pieces of legislation that impact on the activity, its management, renewal, repairs, upgrades and impacts. The key legislative acts are discussed in more detail in the Strategic Environment section of this plan. In addition to national legislation and guidelines, TCC’s City Plan provides rules that apply to subdivision and land use consent. It also relates to development in conjunction (where necessary) with the rules in the Regional Soil and Water Plan for the Bay of Plenty, administered by BOPRC for the purpose of controlling discharges to the environment.

5.8.1 Impacts on the BVL Activity and Management Strategy Legislative change can significantly affect TCC’s ability to meet minimum LoS that have been agreed with the community, and may require improvements to assets. This will affect the community if increased LoS impacts on the ability of residents to pay for services. TCC will ensure it is compliant with the relevant legislative requirements related to BVL activity. This includes environmental performance and governance through the implementation and continuous improvement of this AMP. 5.9 BVL Demand Cost to the User Under the Contract of Supply of Services BVL has the right to set user fees and charges. BVL must ensure that such charges encourage the use of available facilities. By the 1st of July each year charges shall be reviewed and adjusted accordingly. Demand Projections Tauranga’s resident population is predicted to grow to around 161,646 in 2033 (37.8 per cent), which equates to approximately 144,000 (23 per cent) by 2025. BVL user numbers have been increasing since 2013. It is anticipated that population growth will contribute to ongoing increases in demand for most facilities in the network. Demand Management Demand management strategies provide alternatives to the creation of new or improved assets in order to meet demand. They address ways of modifying customer needs in order that the utilisation of existing assets is maximised and the need for new assets is deferred or reduced. The primary focus for demand management includes:  Changing hours of use to cater for additional demand. For example: have longer opening hours during the daylight savings period.  Discount incentives to promote the use of the facilities. For example: Users of Aquatic Facilities can use other facilities at discounted prices to encourage and spread demand.  Promotion of alternative venues to spread demand. For example, the Baywave Aquatic Centre promotes Greerton Aquatic Centre (or vice versa) to lane swimmers to reduce and spread demand during peak periods. 5.10 Capital Works Programme and Funding A summary of the projects related to growth over the next 10 years is listed in Appendix 3.

18-28 Bay Venues Ltd Asset Management Plan Page 64 of 143 6 Risk Management 6.1 Overview This section covers the risk management strategies implemented by BVL. The objective of risk management is to identify specific business risks, together with any possible risks to the health and safety of employees, other contractors and the general public, associated with the ownership and management of assets. This can be used to determine the direct and indirect costs associated with these risks, and form a priority-based action plan to address them. The definition of risk within this document is an “effect of uncertainty on objectives”, with the effect being a “deviation from expected positive and/or negative”. This Risk Management Section focuses on the threats to the activities carried out at BVL facilities. An improvement task has been identified for the capturing of Opportunities.

6.1.1 Key Risks Policies and operations cannot influence all the factors contributing to an event. However, BVL have a responsibility to assess identifiable risks in order to best manage their assets with the available resources, with the overall aim of avoiding and mitigating the effects of any potentially detrimental event. In addition, BVL have highlighted a number of key risk areas across the activities including:

 Health and Safety Incidents – worker or contractor actions or inactions contribute to a fatality, serious injury or illness of a customer, worker or contractor.

 Successful computer cyber-attack – causing infected computer data, destruction or corruption of data or exposure of sensitive, private or confidential data.

 Natural disaster event – causing damage to assets

 Interest rate increases quicker or higher than anticipated by TCC – leading to increased costs and failure to meet budget expectations

 Key asset failure – failure of pipe infrastructure

 Failure or major disruption to key business systems – directly impacting on service delivery or ability to capture and access key information

 Water borne parasitic contamination outbreak – causing serious illness and possibly death in multiple victims These are discussed in further detail in the Risk Registers and the overall Action Plan contained in this section of the AMP and Appendix 1.

6.1.2 Level of Risk The purpose of this risk plan is to identify the risks associated with the activity and assets. This requires approaching the risks from various perspectives including financial, operational, and organisational and public health and safety. These risks are pertinent to both a higher, corporate level, and to a more detailed asset –specific level, but do not substitute for more specific risk analysis at those levels (see diagram). The next step beyond risk analysis is to develop more detailed plans where the criticality of specific assets is assessed and an action plan developed as appropriate.

18-28 Bay Venues Ltd Asset Management Plan Page 65 of 143 Figure 18: Level of Risk

6.2 Current Situation

6.2.1 Corporate Policy TCC has introduced a framework for the assessment of risk consequences and a risk priority treatment matrix to be applied throughout the organisation. Accordingly, BVL has adopted the risk criteria and matrices as the basis for risk evaluation in this section. The following steps were undertaken to establish the context:

 Definition of the relationship between the organisation and the environment, and the organisation’s strengths, weaknesses, opportunities and threats to provide an understanding of the ‘big picture’ potential risk areas and opportunities to manage these risks.

 Identification of internal and external stakeholders.

 Identification of the organisation’s capabilities to meet the objectives (levels of service and community outcomes).

 Identification of broad categories for sources of risk of not achieving the levels of service, community outcomes, and areas of impact. The key risk criteria, or areas of impact for assessing the consequences of identified risks are:

 Corporate Image (Public Image/Support)

 Public Health & Safety

 Environment

 Third Party (Community) Costs

 Loss of Service and Community Effects

 Loss of Revenue or Business Costs

18-28 Bay Venues Ltd Asset Management Plan Page 66 of 143 6.3 Risk Management Process The following flowchart and text details the key elements of the Risk Management Process undertaken in this Asset Management Plan.

Figure 19: Risk Management Process

18-28 Bay Venues Ltd Asset Management Plan Page 67 of 143 6.3.1 Risk Management Process The following sections expand upon the risk management process as identified in the flowchart (previous page). The risk assessment process has been generally based upon the Australian/New Zealand Risk Management Standard AS/NZS ISO 31000:2009 to establish a Risk Matrix as shown in Table 21. This matrix provides a tool with which to quantify risks by identifying the likelihood of the risk occurring and the outcomes or consequences, should the risk occur. The first step in the process is to identify all possible risks.

6.3.2 Identify Possible Activity Risks All possible risks affecting the asset activity need to be identified. Risks can include economic, environmental, financial, legislative, operational, organisational, public health, reputation / image and safety considerations. Once identified, risks are entered into the risk register. The register is used to record and summarise each risk and to outline current mitigation measures and potential future management options.

6.3.3 Determine Likelihood and Consequence for Gross Risk Factor Table 19 and Table 20 demonstrate the scales used to determine the likelihood and consequence levels, which are input into the risk calculation to consider the effect of a risk event. The likelihood of occurrence and severity of consequences should be based on as much real data as possible, for example local knowledge or recorded events such as maintenance records, weather events etc. Some analysis may be required for verification. The likelihood scales identify how likely, or how often, a particular event is expected to occur; these are shown in the table below and include the descriptors quoted from the

Table 19: Likelihood of Occurrence

Likelihood Descriptor Probability Almost Certain 90% or greater chance of occurring in next 12 months. 5 Expected to occur in 9 of next 10 years Certain to occur at least once in next 5 years It would be unusual if this didn’t happen. Major Risk: Will most certainly occur in the foreseeable future Likely 60% to 90% chance of occurring in next 12 months 4 Expected to occur in 7 of next 10 years Certain to occur at least once in next 5 years Will occur more often than not. Major Risk: Will possibly occur in foreseeable future Moderate 25% to 60% chance of occurring in next 12 months 3 Expected to occur in 4 of next 10 years Likely will occur at least one in next five years (>80% chance) Not likely, but don’t be surprised. Major Risk: There is always a chance it will occur in the foreseeable future Unlikely 2% to 25% chance of occurring in next 12 months 2 Expected to occur a maximum of once every 5 to 20 years 50% chance of occurring in next 5 years A surprise, but not beyond the bounds of imagination Major Risk: There is little chance of occurrence in the foreseeable future Rare Up to 2% chance of occurring in next 12 months 1 Could occur once every 50 or more years Less than 10% chance of occurring in next 5 years Will only occur in exceptional circumstances Major Risk: Occurrence is unlikely in the foreseeable future

18-28 Bay Venues Ltd Asset Management Plan Page 68 of 143 The Consequence descriptors in Table 20 indicate the level of possible consequences associated with a risk and include the descriptors quoted from the BVL Risk Register.

Table 20: Consequence Rating

Consequence Descriptor

Critical  Malicious action directed at BVL  Failure of protection mechanisms to identify and treat a virus.  Failure by authorised users to observe ICT security and acceptable use policies. High  Lack of documented workforce plan detailing skills/capabilities required.  Remuneration not sufficient to attract appropriate candidates.  BVL staff highly sought after in the market.  Lack of understanding of potential health and safety risks.  Failure to address known health and safety risks.  Lack of management of health & safety aspects of PCBUs  Unsafe assets, plan or equipment.  Fatigue Management around high risk staff workloads.  Ongoing monitoring of staff competencies in SOPs.  Poorly trained or inexperienced staff/contractors or lack of appropriate supervision. Poor choices made by individuals.  Severe weather event including flooding, strong winds and tornados.  Earthquake  Failure or breakage of the Metro Link network  Economic factors increase the OCR by the reserve bank.  Major pandemic impacting the region  Negative PR that contributes to loss of confidence in the Board.  Key asset failure: failure of piping infrastructure for supply or return of water.  Failure of or disrupted use of LINKs PoS systems, Ozone Financial systems, Ungerboeck Events system , Outlook or the server itself.  Multi victim event as a result of poor food hygiene/food preparation.  Multi victim event as a result of failure to correctly identify a damaging bio hazards from a contaminated person.  Multi victim event as a result of failure to correctly identify and manage hazards from crowd movement / flow / egress.  Multi victim event as a result of failure to correctly identify and manage bio hazards from a contamination event/person. Moderate  Ownership of the Mt Hot Pools no longer with BVL following iwi settlements.  Data inadvertently sent to the wrong recipients  External digital hosting sites not sure.  Use of non-corporate filing systems (hard copy, personal drives, thumb drives etc)  Inconsistent capture of information into corporate document and management systems.  Information held by BVL but not readily accessible (or stored in the wrong place).  Lack of documented disaster recovery plan and procedures.  Lack of integrated emergency management goals/drivers within business as usual practices.  Organisational culture (employment experience) does not attract or retain appropriate candidates/staff.  Hiring Manager fails to identify the most suitable candidate.  Lack of H&S resource internally to ensure compliance with HSWA.  Lack of documented training records to support H&S training including H&S inductions onto sites/BVL.  Payroll Fraud including that undertaken by staff, by managers and by payroll.  Theft of assets including cash.  Fraudulent use of information and communication technology.  Fraudulent use of BVL information or data.  Fraudulent procurement.  Staff conflicts of interest leading to failure to follow procurement policy.  Tsunami.  BVL unable to attract suitable events to BVL facilities.  Major failure of a significant event.  Failure of bore structures at aquatic facilities.  Failure of smoke and heat detection systems.  Facility structures seismic assessment rated at less than 33%  Failing to monitor and collect on large debtors.  Facility partially or completely damaged by fire.  BVL fail to manage conditions contained in such documents as visas and individual employment agreement.  Inappropriate people into key or sensitive roles.  Terrorist activity/threats that could lead to single or multiple fatality or injury as well as asset damage.  Failure to ensure that BVL facilities and capabilities are adequate to effectively and safely deliver on major new events.  Failure to ensure that BVL venues are able to adequately protect customers and staff. In particular addressing flying debris and adequacy of safety mechanisms eg. Fencing.  Threats that could lead to single or multiple fatality or injury as well as asset damage.  Government policy on minimum wage causing for increase in costs.  Health & Safety processes and understanding suffer due to staff turnover.  JV partners withdraw involvement in lead up to events.

18-28 Bay Venues Ltd Asset Management Plan Page 69 of 143  JV partners experience financial difficulties.  JV partners unable to deliver on commercial obligations.  JV partners tarnish BVL reputation and brand through actions.

Low  BVL unable to access TCC funding required to support business operations.  Lack of integration across activities reducing opportunities to drive business efficiencies.  ICT is not considered to be a strategic function  Lack of adherence to retention policies (and relevant legislation).  Lack of capacity to store digital or hard copy data.  Insufficient infrastructure investment in bandwidth, storage space and equipment.  Lack of an integrated crisis management plan informing business continuity development.  Lack of resourcing, training and testing of business continuity and recovery plans.  Lack of documented coordinated crisis management and business disruption structures and arrangements.  Eruption of White Island  Down grade in TCCs credit rating leading to rate increases to BVL.  Political influences regarding the CCO  Failure of Baywave generator.  Failure of: Variable speed drives at Baywave, Hot Pools and the ASB Arena  Failure of: ASB Arena lighting in particular three court area.  Failure of :Pool tanks at the Hot Pools, Baywave or Greerton  BVL records a significant negative variance to budget expectations.  Assumptions for major capital investment fail to meet expectations.  Non-renewal of key resource consents.  Leakage or spill from neighbouring TCC Wastewater treatment plants.  Presence of asbestos in BVL facilities.  TCC Strategies that impact on their Letter of Expectations to BVL.

After the likelihood and consequence factors have been determined, the level of risk is calculated by multiplying the Likelihood of Occurrence (Table 19) and Consequence Rating (Table 20) together. Risk = the likelihood of an event occurring X the consequence of such an event. The final outcome is a risk rating. The risk rating enables the identification of risks that are significant, and those that are of a lesser nature. The risk is also rated depending on the consequence above the likelihood. Having established the comparative risk level applicable to individual risks, it is possible to rank those risks. Four risk categories have been used: Extreme, High, Moderate, and Low (see Table 22)

18-28 Bay Venues Ltd Asset Management Plan Page 70 of 143 Table 21: Risk Assessment Matrix 5

4 2 2

3 4 4 1 1 Likelihood

2 1 10 12 4 11

1 2 13 8 3 6

1 2 3 4 5

Consequence Once the impact has been ranked according to the relative risk level it poses, it is then possible to target the treatment of risk exposure, by beginning with the highest risks and identifying the potential mitigation measures.

Table 22: Comparative Levels of Risk

Critical Risk Requires immediate remedial action

High Risk Requires remedial planning and action.

Moderate Risk Address via new procedures and/or modification of existing practices and training.

Low Risk No formal requirement for further action, unless escalation of risk is possible.

Initially, the gross risk needs to be calculated; therefore, likelihood and consequences must be considered as if there were no measures set in place to prevent or mitigate the risk occurrence. Essentially gross risk is an exercise to determine “What is the worst that could happen?” Once the gross risk is determined it is possible to investigate the current systems and processes to identify the net risk, and then formulate an action plan to further reduce the likelihood or consequences of identified risks occurring.

18-28 Bay Venues Ltd Asset Management Plan Page 71 of 143 6.3.4 Identify Current Systems & Processes, and their Effectiveness Current systems and processes are identified, and as far as resources allow, their effectiveness measured. It is often practical to identify these processes and systems initially, and rank the effectiveness conservatively until the audits and actual practice proves otherwise. Audits can be identified as part of the improvement process. Effectiveness of existing systems and processes is expressed in the following categories: Excellent Controls are strong and operating properly, providing a high level of assurance that objectives will be achieved. Good Controls are strong and operating properly, providing a reasonable level of assurance that objectives are being achieved. Average Controls are adequate for most circumstances. Unsatisfactory Controls do not meet an acceptable standard, as many weaknesses and/or inefficiencies exist. Controls do not provide reasonable assurance that objectives will be achieved. Poor There are little or no controls evident.

6.3.5 Determine Net Risk The net risk is the actual risk that exists considering the effective measures implemented. The measures in place reduce either, or both, the consequence and the likelihood of a risk occurrence. The revised factors are input into the same risk matrix to obtain the Net Risk Factor.

6.3.6 Prioritise Net Risks and Formulate Action Plan for Risk Management A priority order of issues to be addressed is obtained by sorting Net Risk Factors by risk level. The most suitable actions are determined considering available options and resources. The costs and benefits of these actions need to be analysed. The best available techniques are required to analyse the options e.g. optimised decision-making (ODM). Application of ODM applies a ‘value chain’ to the proposed actions rather than just working from the highest risk down regardless of cost, for example:

 A high risk may have to remain due to the inhibitive costs associated with avoidance or mitigation

 A medium risk event could be easily and cost-effectively avoided with the resources available. From an Asset Management perspective, the options for mitigating risks considered to reduce the cause, probability or impact of failure, are typically: Do nothing Accept the Risk. Management Strategies Implement enhanced strategies for demand management, contingency planning, quality processes, staff training, data analysis and reporting, reduce the target service standard, etc.

Operational Strategies Actions to reduce peak demand or stresses on the asset, operator training, documentation of operational procedures, etc. Maintenance Strategies Modify the maintenance regime to make the asset more reliable or to extend its life. Asset Renewal Strategies Rehabilitation or replace assets to maintain service levels. Development Strategies Investment to create a new asset or augment an existing asset. Asset Disposal/ Divestment of assets surplus to needs because a service is determined to be a non-core activity or Rationalisation assets can be reconfigured to better meet needs.

6.3.7 Monitor, Measure, Report, Review Plan and Actions The management structure needs to be in place to ensure that actions are monitored, reported on and reviewed regularly. It is important to identify and constantly review the following: Responsibility Nominated person responsible for ensuring the risks are managed and improvements carried out in accordance with the programme. Best Appropriate Practice The practices that should ideally be carried out to manage risks to an acceptable level. Audit Trail Date of entries and revisions, target date for actions to be taken and actual task completion dates.

18-28 Bay Venues Ltd Asset Management Plan Page 72 of 143 In addition, management options should be ranked via benefit / cost analysis using Net Present Value (NPV) calculations. The inputs considered in the NPV calculation are:

 Capital investment costs.

 Changes in operating and maintenance costs.

 Reduction in business risk exposure (BRE).

 Increase in effective asset life / value.

 Increase in LoS. All capital development projects should be ranked corporately for inclusion in the LTP/ Annual Plan consultation process using benefit / cost analysis, the following additional criteria:

 Contribution to BVL’s Strategic Plan objectives.

 Contribution to Tauranga's business objectives.

 Level of project commitment (contractual and legal issues). The resulting action plan for risk treatment needs to be practical and achievable such that the necessary resources and time frames are realistically met. The actions also need to be able to be monitored and measured.

6.3.8 Review Risks Most of the time, the risks identified will remain the same and reviews will occur in the context of these risks. However, it will be important to recognise when a new risk arises, or an existing risk changes in nature. In the latter case, the gross risk also needs to be re-evaluated. 6.4 Criticality of Assets

6.4.1 Overview BVL assets are critical for the provision of facilities to the community. They provide recreational facilities for both active and passive activities, as well as business purposes. They have significant monetary value tied up in them for the city in terms of land value, asset(s) value and maintenance costs, in addition to renewals scheduled each year.

6.4.2 Significance BVL Assets contribute to the wellbeing of the city and deliver on community outcomes in a significant way, and as such are quantified under the significance policy (refer to Strategic Environment section of this AMP) under section 90 of the LGA.

6.4.3 Strategic Importance Council has determined BVL services and assets as strategic in nature (refer to the Section 2 of this AMP).

6.4.4 Organisation level BVL assets are not critical in the same way that roading or water supply assets are to the city and are not part of the lifelines group, so at an organisational level BVL sits below the provision of service infrastructure.

6.4.5 Civil Defence Role In a civil defence emergency, BVL assets could have a role in providing space for authorities to work from to coordinate services; they also provide a potential evacuation space for citizens. Baypark Stadium is a Tsunami evacuation zone and the Baypark Arena is a secondary assembly area under the Bay of Plenty CDEM Plan.

18-28 Bay Venues Ltd Asset Management Plan Page 73 of 143

6.4.6 Evaluation Method In the establishment of asset criticality, two levels of criticality are utilised -activity level and corporate level. The activity based criticality rating for BVL activity is based on: • Criticality – number of customers affected by asset failure • Redundancy – ability to replace or circumvent the failed asset • Health & Safety – direct or indirect impact of asset failure on the health of safety of individuals or the community • Cost of failure – cost to repair or replace the asset including cost of any temporary service provision The corporate criticality rating reflects the BVL activity-based rating and incorporates the organisational rating by placing service provision above the provision of a particular facility.

6.4.7 Rating To date, there has been no attempt to write a complex criticality matrix and apply a score to individual assets to assist in determining the criticality of one asset over another. 6.5 Risk Register The risk register provided in Appendix 1 for the current and future BVL activities have been developed in consultation with key staff and the Assets & Projects Manager.

6.5.1 Building Integrity and Quality Assessments BVL has identified a risk regarding the overall building integrity and quality across the network. To better understand and manage this risk BVL has commenced a process of seismic assessments and asbestos testing for its venues. The results and progress to date are summarised in Table 23.

Table 23: Summary of Building Integrity and Quality Assessments Facility Age Risk Seismic Assessments Structural Issues Asbestos reports

Adams Centre 1941 Low Detailed Seismic Assessment No Asbestos located in (DSA) redevelopment and removed. 67% Risk of some asbestos still on site. Identified on hazard register

Arataki 2011 Low N/A N/A N/A Community Centre

Baypark Arena 2011 Low N/A N/A N/A

Baypark 2001 Low Initial Seismic Assessment Structural issues resolved N/A Stadium (ISA): through roof replacement 100% roof project. Consider improving 85% stand speedway roof to 67% 60% speedway stand and roof Baywave 2005 High DSA Undertaking major structural N/A 35% and seismic assessments

Bethlehem Hall 1960’s Medium ISA Detailed seismic assessment Asbestos testing yet to be 40% recommended due to ISA undertaken results

18-28 Bay Venues Ltd Asset Management Plan Page 74 of 143 Facility Age Risk Seismic Assessments Structural Issues Asbestos reports

Greerton 1960’s Medium DSA Seismic remedial design Asbestos located in facility. Aquatics 35% completed. Estimate of Identified on hazard register $120,000 to strengthen to 67%

Greerton Hall 1960’s Medium ISA DSA recommended due to Asbestos testing yet to be 40% ISA result undertaken

Matua Hall 1970’s Medium ISA Consider improving to above Asbestos testing yet to be 65% 67% undertaken

Memorial Pool 1960’s High DSA Seismic remedial design Asbestos testing yet to be 25% completed. Cost estimate undertaken $107,000. Not considered urgent work by Engineer due to type of use and construction materials

Mount Hot 1968 Low ISA No Testing complete. None Pools 95% found

Mount Sports 1960’s Medium DSA Seismic strengthening Testing complete. Asbestos Centre 43% required to increase to 67%. located in facility. Identified Awaiting design and cost on hazard register estimates

Otumoetai Pool 1960’s Medium ISA DSA recommended due to Asbestos testing yet to be 55% ISA result undertaken

Baypark 2005 Low N/A N/A N/A Pavilions

Papamoa Sport 1994 TBC Not tested Recommend ISA is Asbestos testing yet to be & Recreation undertaken undertaken Centre

QEYC (incl. 1965 Medium ISA DSA recommended due to Asbestos identified in interior Mem Hall) 45% ISA result and exterior brick work and cladding material of QEYC. Mem. Hall tested negative but may be some in areas not reached by samplers.

Tauriko Hall 1960s High DSA Peer review of DSA Testing complete. Asbestos 29% undertaken. Opus are to located in facility. Identified provide an updated DSA on hazard register based on the peer review.

Welcome Bay 1960’s Low ISA No Positive asbestos test Hall 90% received May 2018 via routine R&M. Full building asbestos testing to be undertaken through TCC tender.

6.6 Risk Action Plan The Risk Action Plan is compiled from the Risk Register and highlights the most significant Net risks faced by the activity. The main risks are listed in order of severity (Net Risk) as assigned in consultation with key BVL staff. Actions that are required to achieve the desired improvements are indicated along with how progress on these actions will be monitored and reported. Where applicable, Action tasks will detail timeframes for achievement, and responsibility for these actions.

18-28 Bay Venues Ltd Asset Management Plan Page 75 of 143 6.6.1 Link to Asset Management Improvement Plan Where possible, actions identified in this Risk Management analysis are directly linked to actions identified in the Asset Management Improvement Plan, where resources should be identified, approval of resources noted, and a defined method is provided for revisiting and reviewing progress against each action item. Where an equivalent action item is not listed in the Improvement Plan, it should be added. In all cases, the appropriate risk reference number should be noted in the Improvement Plan, and the Improvement number should be noted in the last columns of the Risk Action Plan.

6.6.2 Monitor, Measure, Report, Review Plan and Actions Management options listed in the risk tables have been refined into actions for each risk listed. These are the actions that are required to cost-effectively reduce the net risk by increasing BVL ability to minimise the chances of the risk event occurring, or minimising the consequences should it occur. Actions should consider the overall management of the asset, not just the minimisation of risk. If possible, proposed actions should align with other initiatives to:

 Reduce capital investment costs.

 Reduce operating and maintenance costs.

 Reduce business risk exposure (BRE).

 Increase effective asset life / value.

 Increase level of service. The resulting action plan for risk treatment needs to be practical and achievable such that the necessary resources and time frames are realistically met. The actions also need to be able to be monitored and measured. The monitoring/reporting column of the Risk Action Table specifies:

 Responsibility: Nominated person responsible for ensuring the risks are managed and that improvements are carried out in accordance with the programme;

 Timeframe: Achievable target date to be monitored and reported against; and

 Method and Frequency of Monitoring. The actions listed will be reported, monitored and reviewed by the BVL Assets & Projects Manager regularly and progress reported to the Board and TCC at AMP review stage. At the same time revised timeframes, responsibility, and even the appropriateness of continuing with the proposed action, or adding new actions will be discussed. As actions are complete, the net risk should reduce in most cases. The risk tables will need to be reviewed against these and updated to reflect these improvements.

18-28 Bay Venues Ltd Asset Management Plan Page 76 of 143 7 Life Cycle Management 7.1 Introduction This section describes the broad strategies and specific work programmes required to achieve the goals and standards outlined in the Levels of Service and Growth and Demand Sections of this plan. Life cycle management (LCM) describes the process of managing the entire life span of an asset, from the planning process through its development and useful life. For BVL, LCM is also about making life cycle thinking and sustainability operational to archive continuous improvement. This section presents the LCM plan for the BVL assets, and includes:

 A description of the asset groups/assets in physical and financial terms.

- Overview

- General Asset Description

- Value & Depreciation

- Age & Condition

- Capacity & Performance

 An identification of key issues within each asset group.

 Outline of resource consents.

 A description of the General LCM Strategies and Plans.

- Operations and Maintenance Strategies

- Renewals Strategies

- Development Strategies

- Disposal Strategies 7.2 Work Category Definitions The LCM strategies are divided into the three work categories as shown in Figure 20.

Figure 20: BVL Lifecycle Management Categories

Lifecycle Management Categories

Operations & Development Renewal Maintenance Works

Proactive Reactive Replacement Rehabilitation Creation Disposal Maintenance Maintenance

TCC / BVL Externally Private Public Funded Funded Partnerships

18-28 Bay Venues Ltd Asset Management Plan Page 77 of 143 The components of LCM categories are: Asset Operations: The active process of utilising an asset, which will consume resources such as manpower, energy and materials. Operations include routine inspections and testing to monitor asset condition and identify the need for maintenance and repair work. Asset Maintenance: The on-going day-to-day work activity required to keep assets serviceable and prevent premature deterioration or failure. Two categories of maintenance are carried out:

 Proactive (Planned) Maintenance: Work carried out to a predetermined schedule or programmed period as a result of identified needs (e.g. repairs of faults of a more significant nature, but which do not pose a hazard). Planned maintenance includes:

- Preventative Maintenance Scheduled Inspections Condition assessment Recording & comparing of condition & performance data Greasing & lubrication of mechanical equipment

- Predictive Maintenance Vibration Analysis on mechanical equipment Condition data analysis

- Programmed Maintenance Repairs of faults that do not require immediate attention or have been temporarily been fixed under Unplanned Maintenance Work in response to needs identified during routine inspections Preventative maintenance aims to extend asset lives to maximise the return on capital investment. Predictive maintenance utilises indicators to forecast maintenance, repair and renewal needs. Programmed maintenance aims to minimise disruption of services while reinstating an asset to its full capacity, this frequently includes the replacement of assets or asset components.

 Reactive (Unplanned) Maintenance: Work carried out in response to reported problems or defects. Unplanned maintenance is triggered by asset or service failure and frequently applies a temporary solution to reinstate a service. Once the service is restored, the remaining work is frequently carried out under programmed maintenance. The short-term maintenance strategy is intended to maintain the current levels of service standards. The long-term maintenance strategy will be modified to reflect the following factors:

 Risk of failure -The risk associated with failure of critical assets  Levels of service - Changes in the current or agreed level of service  Economic efficiency -Asset condition assessment  Extend the life of the asset component -Asset improvements and development programme  Legislative compliance – e.g. requirements of LGA 2002

Asset Renewal: Major work that restores an asset to its original capacity or the required condition. Renewal strategies provide for the progressive replacement or rehabilitation of individual assets that have reached the end of their useful life. This is managed at a rate that maintains the standard and value of the assets as a whole. This programme must be maintained at adequate levels to maintain current levels of service and the overall quality of assets. The general renewal strategy is to rehabilitate or replace assets when justified by:- Asset Performance Assets are renewed where it fails to meet the required level of service. The monitoring of asset reliability, capacity and efficiency during planned maintenance inspections and operational activity identifies non-performing assets. Indicators of non-performing assets include: 18-28 Bay Venues Ltd Asset Management Plan Page 78 of 143 Structural failure Repeated asset failure (breaks, faults) Ineffective and/or uneconomic operation Unsafe conditions for the public Economics When it is no longer economic to continue repairing the asset (i.e. the annual cost of repairs exceeds the annualised cost of its renewal). BVL actively researches the effectiveness of new technology, which may reduce the direct and social costs of repair works. Risk The risk of failure and associated environmental, public health, financial or social impact justifies proactive action (e.g. probable extent of facility damage, health and safety risk). Where such assets are identified (critical assets), proactive inspection is undertaken to determine asset condition at a frequency appropriate to the risk and rate of asset decay. Life Cycle Table 21 shows the current useful life ranges for the high level asset groups. Replacement (Renewal) Works Summary While many of the smaller replacement (renewal) items are undertaken within maintenance, all major works are programmed as replacement items and are managed in a similar way to new capital works. The replacement (renewal) programme and expenditure forecast for the next 10 years still needs to be improved as asset condition and data confidence improves. This is an ongoing task undertaken jointly between BVL and TCC staff.

Asset Development: The creation of new assets or works which upgrade or improve an existing asset beyond its existing capacity or performance in response to changes in demand, customer expectations and legal requirements. Asset Disposal: Disposal is any activity associated with the removal and/or abandonment of a decommissioned asset. Assets may become surplus to requirements for any of the following reasons:

 Underutilisation.

 Obsolescence.

 Provision exceeds required level of service.

 Asset no longer provides the service or fulfils the purpose for which it was intended.

 Uneconomic to upgrade, operate or repair.

 Policy change.

 Service provided by other means (e.g. private sector involvement).

 Potential risk of ownership (financial, environmental, legal, social, vandalism).

7.3 BVL Overview The LCM section provides the broad strategic and work programmes required to achieve the goals and standards outlined earlier in this AMP.

7.3.1 Overview - Age and Condition Many assets are replaced on a component level under maintenance, rather than on a whole asset base.

18-28 Bay Venues Ltd Asset Management Plan Page 79 of 143 These component level repairs have the potential to replace an asset bit-by-bit over its life time, although none of them individually are significant enough to trigger an update of the assets install date to reflect that the asset has been significantly renewed. This frequently leads to an “old looking” asset base despite the components being well within their life expectancy. The latest asset condition rating has been undertaken by Beca in 2017. The asset condition grading (scoring) methodology follows the general approach described in Section 3.5.7 of the NAMS Property Manual – Version 1.0 2006. Pool plant assessments were also undertaken in 2017 by specialised contractors and form part of the renewals programme. The condition rating has been based on observed physical condition and assigned condition grades reflecting visible defects and failure modes common to a component type. In simple terms, condition grade 1 reflects assets in very good condition and condition grade 5 reflects assets in very poor condition.

Figure 21: Overview Condition Grading (Data extracted from Powerplan as of 20 May 2018) Asset Component Condition Grade

1621

1396

843 883 656 662 687 495 485 348 271 203 162 141 143 110 114 99 69 96 5 17 4 7 3

BAYPARK ARENA BAYPARK STADIUM AQUATIC VENUES COMMUNITY HALLS INDOOR REC

Very Good Good Fair Poor Very Poor

Total Condition Grade Percentage

18% 0%1%0% Very Good Good 81% Fair Poor Very Poor

18-28 Bay Venues Ltd Asset Management Plan Page 80 of 143 7.4 Baypark Stadium

7.4.1 Overview Baypark Stadium was initially constructed and officially opened in 2001 as the home of speedway in the Bay of Plenty. It is located on the south side of State Highway 2 at the intersection with Truman Lane. Since opening there have been a number of renovations and additions to the facility resulting in significant asset portfolio that needs to be properly managed under accepted asset management practice.

Figure 22: Photograph of Baypark Stadium

Table shows major development Baypark Stadium since opening.

Table 26: Asset Development Baypark Stadium

Date Description of Work January 2001  Clubrooms, toilet block, storage and St Johns room and corporate boxes in stand one. February 2001  Stand two with caretakers’ accommodation, stadium and toilets. October 2001  Add two corporate boxes October 2001  Add lift, two toilet blocks, second level to stand one, extend toilets, structural variations to grandstands. June 2002  Extend club room April 2004  Ancillary Offices for BOP Rugby Union May 2005  Install four light towers May 2005  Add changing rooms, staging area, stairs and offices August 2005  Implement shed January 2006  Add roof to stadium September 2014  Amalgamation of corporate boxes two and three to create the Corporate Lounge January 2015  Concrete boat ramp constructed under Te Puke end of rugby pitch June 2016  Truman Lane House (on mound) demolished July 2016  Ancillary Offices Refurbished August 2016  Upper auxiliary offices tenanted by BVL Business Services September 2016  Lower auxiliary offices tenanted by external company

18-28 Bay Venues Ltd Asset Management Plan Page 81 of 143 Date Description of Work July 2017  Stadium offices and foyer on ground level refurbished and tenanted by BVL Business Development team July 2017  Pavilion 1 refurbished to become Indoor Sports Pavilion September 2017  Pits carpark lights upgraded to LCD lights March 2018  Pavilion 3 refurbished for Drift cart operation  Pavilion 1 leased to third party

The main asset groups noted for Baypark Stadium are:

 17,700 seat stadium (expandable to 19,700) with fixed lighting towers, oval clay speedway track, in field rugby pitch, administration offices, workshops, toilet blocks, function room (stadium lounge) and food franchise facilities.

 Concrete paved hardstand areas for speedway pits, vehicle access and parking for over 3,000 vehicles.

 Detached ticketing and St. John’s offices.

 Large steel frame and corrugated iron sheds.

Stadium/ Grandstand Galvanised steel supports the Colorsteel roof which was added in 2006. The grandstand has a steel structural framework with a timber floor. There are three toilet blocks, one at either end and one in the middle adjacent to the snack bar located under the grandstand on the north eastern side. Main entry to the grandstand is via gates 1 and 2 on the western side plus there are seven other entry/exits around the perimeter of the stand. The stadium provides an oval dirt track around the inner perimeter of the stand for speedway racing with a grassed sports field and runoff area in the centre. Stadium Floodlighting The stadium floodlighting is provided by approximately 161 x 2kW metal halide luminaries of Musco Lighting manufacture on four 48-metre towers. The towers have different numbers of luminaries fitted, tower A1 having 34, A2 having 37 and A3 and A4 having 45 each. Most of the luminaries are fitted with basic glare shields with the top row of luminaries on tower A3 fitted with more substantial glare shields. The luminaries are mounted directly onto a head frame, which in turn is bolted to the tower. The luminary control gear is located adjacent to the towers in control boxes fixed to the mountain frames at ground level. Over Clay Speedway Track The closed circuit speedway track is 470 metres around, 18 metres wide and is surfaced with terracotta clay. A concrete perimeter wall encloses the track that incorporates a removable safety fence during the speedway season. This track requires a specialist maintenance regime. There is a concrete road underneath part of the clay track for the use of drifting. This track is 9 meters wide from the concrete fence and extends west from the pit chute, around the western corner, and one third of the way along the back straight. The inner track is bordered by a concrete “pole-line” which also acts as a drainage system for water. This leads to grilled drainage sumps at either end of the field that both contain two water pumps to assist with the water drainage from the field and track. Infield Stadium Pitch The pitch is a purposed-built structure comprising a sand top on an earth base. A concrete boat ramp installed in 2015 sites under the grass surface at the southern end of the field. The type of grass is a sports field rye. Silt drains in the earth base allow quick run-off to multiple layers of drains beneath. The grass surface requires close management to ensure that concentrated use does not product bare patches. With the recent addition of the jet sprints event, turf management has become more complex with having to reinstate in a relatively short time frame. The in ground sprinkler system was removed during initial jet sprints track construction and a travelling irrigator was purchased to ensure adequate

18-28 Bay Venues Ltd Asset Management Plan Page 82 of 143 continued irrigation. Improved levelling of the field occurred in 2016 and to a greater extent in 2017 to minimise the peak height of the field to be more suitable for Jetsprint water levels. Main Building The main building is situated on the south western side of the stadium. The ground floor level includes the No 1 Gate ticket booths, the Stadium Lounge and the kitchen areas at the northern eastern end, the administration offices and workshops in the centre section and the changing rooms, some auxiliary offices with kitchenette (tenanted), with second level Business Services offices with kitchenette and toilets above, in the south eastern end. The second level also includes corporate boxes overlooking the arena and ASB Baypark administration offices looking out to the pit area. The third level has one large VIP corporate box and, toilets and two commentary boxes. Construction is primarily Colorsteel roof and wall cladding with aluminium joinery with paint finish, fibrolite wall cladding around the kitchen area. The workshops have metal roller doors. Further ticketing booths and St Johns office are detached from the main building. Administration Office Internals The administration offices are on the ground and first floor levels. The stadium offices occupy the first floor level senior management offices which includes a reception area, two offices, a meeting room, kitchen and staff sanitary facilities (which also include a shower). On the ground floor is the Business Development stadium offices, the Operations administration offices, with a separate kitchen and storage room, Operations Workshop 1 which has two internal storage rooms, Bay Audio Visual Workshop 2 which includes an administration office. Construction is gib board lined ceilings and walls, paint finishes, carpet and vinyl floor coverings in the offices. Stadium Lounge Internals The Stadium Lounge section of the building is situated on the ground floor in the north eastern corner of the building with access from both the arena and the concourse. It includes large, separate gender sanitary facilities, storage rooms, cleaner’s room, kitchen and bar facilities and access to the upper level corporate rooms via two internal staircases and a lift. Construction is suspended and gib board ceilings, gib board-lined walls, paint finishes, and vinyl floor coverings. Corporate Box Internals There are 26 corporate viewing rooms on the first floor (previously 27 until amalgamation of boxes two and three) and a substantially larger VIP suite on the second floor. The first floor level facilities are each a single room with kitchen bench and cupboards, gib board linings, painted surfaces and carpeted floors. Internal access is from the corridor which runs the full length of the building (160m+). Each room also has its own external viewing balcony with tiled floor. The second floor suites are of a superior quality on a larger scale. The balcony areas are enclosed with large aluminium framed viewing windows. Also on the 2nd floor is an administration area with 3 viewing areas for event management purposes. Access, Hard Stands/ Speedway Pits An asphalt sealed road runs from Truman Lane past the south eastern end of the stadium, along the edge of the main concourse and pit area to the storage buildings in the southern corner, then onto the main parking area adjacent to S.H.2. There is also a pedestrian only gate on Truman Lane and another vehicle entry/exit accessing the parking area from S.H.2. The large concrete-paved pit area is encompassed on two sides by 2700mm high Coloursteel fencing, with the sheds on the southern side and main stadium building on the north side. Wire mesh fencing and double wire mesh gates secure access to the other areas of the site. The pit area hardstand has twelve units with each unit distributing power, water, and compressed air service points for the speedway teams. Six of these distributed services stations comprises of two 4 x 4 posts set into the concrete with a single cross-member. The remaining six are underground. Pavilions These are three large connected corrugate iron and roof sheds housed on a concrete pad. Two metre high concrete walls meet the building floor with steel frames creating a total wall height of 5.5m extending to a roof apex at approximately 8m. The sheds are mainly hollow with a floor area of 3,375m2. Pavilion 1 was BOP Rugby indoor training area, then refurbished into an Indoor Sport centre, and is

18-28 Bay Venues Ltd Asset Management Plan Page 83 of 143 now tenanted out. Pavilion 2 is used for storage. Pavilion 3 is used for Blokart operation. Truman Lane Mound This site includes two PVC and two concrete water tanks. The concrete water tanks are redundant and used to supply the demolished house that used to sit on the mound. The PVC water tanks are fed from bore water and feed the various bore water hoses. Services Above ground components and other services are summarised as follows:

 Plumbing and Drainage The buildings include plumbing for hot and cold water supply, and sanitary drainage systems. Domestic hot water is provided by a combination of mains pressure electric and gas water heaters to tenancy, changing and communal type spaces. Low pressure electric water heaters are provided to the “private” corporate box areas. The site also has a bore pump on the situated on the Northern side of the stadium. This bore pump feeds numerous taps throughout the stadium field and also supplies the irrigation unit on the training field.

 Heating Ventilation and Air Conditioning The HVAC services to the premises generally comprise of decentralised domestic/light commercial grade space cooling/heating, and a mixture of mechanical and natural ventilation to tenanted areas. Public spaces (toilet, waiting areas, and suchlike) are naturally ventilated where an external wall is present, or a combination of natural and mechanical where external wall space can only provide minimal openable windows. VIP corporate boxes on level 3 comprise mechanical space cooling and natural ventilation. The Stadium Lounge comprises of mechanical cooling/heating and extract ventilation. A commercial extract hood with grease filters has been provided to the kitchen area. Tenantable office areas are provided with mechanical heating/cooling, and a combination of mechanical and natural ventilation. Changing room areas are provided with mechanical ventilation.

 Electrical The incoming supply transformer is owned by the local Electrical Lines Company. Internal assets and power distribution consists of the main switchboard, local distribution boards and cabling. There is an onsite generator connected to the main switchboard which automatically starts on mains failure and is sized to provide the entire stadium load (565kW – 706kW). The generator manufacturer is Cummins Power Generation. Network Services Brett McNamara are the maintenance electricians.

 Fire Protection Systems The administrative type buildings are provided with automated fire brigade call points, smoke or heat detectors (in certain areas), hand held fire extinguishers, and hose reels.

 Underground services: An underground service locator was utilised in 2009 to detect gas, power and telecommunication lines. A site investigation was undertaken to establish the correct configuration of the storm water and wastewater systems. Once these investigations were complete, a ground survey was then undertaken using conventional survey methods to enable the plotting of the detected services on CAD plans. A verification survey was undertaken on site to confirm the correctness of the survey and fill in some of the gaps, where information was either missing or additional services had been installed after the date of the initial survey. The CAD plans produced were used to extract quantities which are summarised in the below table. Water mains and compressed air lines could not be detected due to being non-metallic pipes and lack of surface features.

18-28 Bay Venues Ltd Asset Management Plan Page 84 of 143 Service Asset Type Quantity (m or No.)  Mains  359m Gas  Cables  5,787m Power  Cables  705 Telecommunications  Pipes  560m Wastewater  Manholes  11  Pipes  4,654m Stormwater  Open drains  488m  Manholes  47  Cesspits/sumps  85 BVL hold a more detailed breakdown of underground service quantities on CAD underground services plans. It is assumed from plan measurements that there is 320m of 100mm water main from Truman Lane through to the rear of the stadium, as well as 2,000m of 20-40mm internal water reticulation through the pits and stadium to the sprinkler heads. 780m is the best estimate for length of compressed air lines through the pits.

7.4.2 Asset Value and Depreciation A summary of the Asset Value and Deprecation data is shown in Section 7.3 above. More detailed data for Baypark Stadium components is contained in Accela asset management software.

7.4.3 Age and Condition A summary of the average age and life expectancy as well as condition assessment data is shown in Section 7.3 above. More detailed data for Baypark Stadium components is contained in Accela asset management software, including associated data confidence grades.

7.4.4 Asset Capacity and Performance Despite being comparatively new, Baypark Stadium lacks many of the modern features of a stadium of that age. Key issues in terms of future use are presentation and infrastructural operations. It is difficult to maintain the venue at reasonable standards of cleanliness and presentation without investing further in cleaning resources. The gravel walkway is not really suited as it gets bogged up with clay and is very difficult to clean. Full replacement to a concrete surface is planned in the LTP. The deterioration in the roofing material also is an issue with birds creating issues around hygiene and general customer comfort. The nature of the speedway track also creates problems in cleaning of the venue and deterioration of the asset. The infrastructure is really tested once crowds get near capacity as there is little room to cater for modern day requirements such as large replay screens, extensive catering concessions, coaching personnel, scoreboards. Water supply and drainage systems in particular are tested under heavy usage or heavy weather.

7.4.5 Resource Consents Activities associated with the LCM of Baypark Stadium operate under the following resource consents:

Table 27: Resource Consents governing the LCM of Baypark Stadium

Consent No. Purpose / Description Location Granted Expires

FOR THE PURPOSE OF DISCHARGING Baypark Stadium, 20 June 2002 31 May 2037 STORMWATER FROM THE TE MAUNGA 81 Truman Lane, SPEEDWAY, PIT AREA AND ASSOCIATED 65138 - 0 Mt Maunganui CARPARK TO GROUND SOAKAGE WITHIN A STORMWATER DETENTION POND.

18-28 Bay Venues Ltd Asset Management Plan Page 85 of 143 7.4.6 General LCM Strategies and Plans Operations & Maintenance Plan and Projected Operational Expenditure O&M activities preserve an asset in a condition that allows it to function efficiently and to a high level of reliability. The ongoing efficiency of maintenance work is critical to achieving optimum asset life cycle costs and the desired level of service. Planned O&M is preventative maintenance carried out to a predetermined schedule with the aim of maintaining or extending asset life. Unplanned O&M is corrective work carried out in response to reported problems or defects and should be minimised. Reducing planned O&M may delay expenditure initially but comes with the significant risk of increasing unplanned expenditure and bringing forward significant capital renewal work. Renewal and Capital Development Plan and Projected Capital Expenditure While Renewals and Capital Works have separate drivers, many projects are a combination of both. As a result of growth and the progression of best practice, levels of service and environmental protection, assets are usually upgraded, rather than just replaced when they reach the end of their physical life or demand on them exceeds capacity. Renewal and Capital Works strategies are presented separately below. Asset Renewals are works that are a major refurbishment or replacement of existing facilities with facilities of equivalent capacity or performance capacity. The long term renewals program for Baypark is based on the remaining economic life approach from NAMS IIMM 2011. This methodology considers base (design) lives of the main asset components and their condition grade to determine their remaining life until renewal is required. The change in remaining life identifies the “decline in service potential”. The renewals expenditure analysis is aimed at determining the long term expenditure liabilities arising from projected deterioration rates on the assets. For the purpose of establishing a renewals profile it is assumed that assets will be renewed once they deteriorate past Condition Grade E (Very Poor). Assets currently assigned Grade E should be renewed immediately. Depending on the type of work and/or expense of the renewal it can be considered an operations and maintenance expense. For Baypark Stadium this means that the following projects stand out as renewal and capital (new) items over the next ten years.  New Gator vehicle and additional CCTV cameras $54,500  New Exhibition Centre $500,000 preparatory works and $4.4 million construction  New equipment for Bay AV including: web streaming $15,000; LED screen $500,000; stage for local events $50,000; general equipment $75,000  Renewal – appliances $75,000 2018/19 and $200,000 2019/20  Renewal – AV equipment $200,000  Renewal – vehicles $150,000  Renewal – car park bollards $100,000  Renewal – generator $230,000  Renewal – painting $220,000 2022/23 and $180,000 2027/28  Renewal – HVAC $100,000

Disposal Plan and Projected Disposal Expenditure There are currently no plans to dispose any assets other than those being replaced as part of the renewals or upgrade programme described in the Renewal and Capital Development Plan outlined above.

18-28 Bay Venues Ltd Asset Management Plan Page 86 of 143 7.5 Baypark Arena

7.5.1 Overview The Baypark Arena is located adjacent to the Baypark Stadium. The facility was constructed over 18 months and was completed in August 2011. The Baypark Arena is a versatile multi-purpose venue with the ability to host any type of event – from community and national sporting fixtures through to trade shows, conferences, gala dinners, corporate hospitality and concerts. The following facilities are located within the arena:

 Lion Foundation Centre The Lion Foundation centre is specifically designed to cater for large events and features a recessed stage, 3 courts, big screens, technical infrastructure, retractable seating and media facilities.

 TECT Sports Courts The TECT 6-Court Auditorium spans over 4500m2 and comprises six main courts. The auditorium is designed to cater for large sporting or performing arts events or trade exhibitions as well as regular community and recreation activities.

 Baypark Arena Suites Four Baypark Arena Suites are situated on the second level of the arena and can be used individually or in combination for conferences, trade displays, gala dinners, cocktail functions, weddings and other private functions.

 Baypark Arena Café The Baypark Arena Café is located within the ground floor of the Baypark Arena and is a fully licenced café. Free Wi-Fi is provided in the Baypark Arena Café.

Figure 23: Photograph of Baypark Arena

7.5.2 Asset Value and Depreciation A summary of the Asset Value and Deprecation data is shown in Section 7.3 above. More detailed data for Baypark Arena components is contained in Accela asset management software.

7.5.3 Age and Condition A summary of the average age and life expectancy as well as condition assessment data is shown in Section 7.3 above. More detailed data for Baypark Arena components is contained in Accela asset

18-28 Bay Venues Ltd Asset Management Plan Page 87 of 143 management software, including associated data confidence grades.

7.5.4 Asset Capacity and Performance The popularity of the Baypark Arena has placed significant demand on space during certain times – some sporting codes are growing, e.g. basketball which directly affects the amount of centre-run programmes BVL can run. Likewise commercial bookings for court space is increasing so needs careful management to ensure community activities can still take place. A booking prioritisation policy assists with determining which groups should get space when there are clashes. Peak times in the venue are weekday evenings, whereas during weekdays and often in the weekends (particularly weekend evenings) the venue is significantly under-utilised. The Baypark Arena’s fire system has high specs which in turn has required significant maintenance/compliance and fine-tuning, which has come at a cost. The Arena was designed as a sports and event centre hosting national and international fixtures and high profile events. Despite this, at the time of the build no provision was made for a generator to minimise risk during major events.

7.5.5 General LCM Strategies and Plans Renewal and Capital Development Plan and Projected Capital Expenditure The same general approach to determining the renewal and capital development plan has been as used for Baypark Stadium. The following projects stand out as renewal and capital items.  Renewal – court divider curtains $300,000  Renewal – appliances $100,000  Renewal – fire systems $100,000 2018/19 and $100,000 2027/28  Renewal – AV system $356,000 2024/25 and $130,000 2027/28  Renewal – painting $200,000  Renewal – sanitary / plumbing $120,000

Disposal Plan and Projected Disposal Expenditure There are currently no plans to dispose any assets other than those being replaced as part of the renewals or upgrade programme described in the Renewal and Capital Development Plan outlined above.

18-28 Bay Venues Ltd Asset Management Plan Page 88 of 143 7.6 Baywave TECT Aquatic & Leisure Centre

7.6.1 Overview The facility was opened in December 2005, it is located in Arataki, adjacent to Arataki Park. The ground floor level consists of 5 pools, being made up of a 25m indoor pool, a leisure pool, learner pool, splash (toddler) pool and Spa pool. In addition, change rooms, sauna (dry heat) steam room (moist heat) and hydroslide compliment the aquatics area. The pools are fresh mains water using salt generated Sodium hypochlorite and UV light for disinfection. The ground floor also consists of a café, offices and childcare centre. The Level 2 area houses a compliment of gym fitness apparatus, assessment and group fitness areas, physio rooms and offices. The activities that occur at Baywave are childcare services, food services, Gym fitness, informal play and recreation, aqua fitness, structured sports events, promotional events and the Bayswim learn to swim programme.

Figure 25: Photograph of Baywave

7.6.2 Asset Value and Depreciation A summary of the Asset Value and Deprecation data for the Aquatic Venues is shown in Section 7.3 above. More detailed data for Baywave components is contained in Accela asset management software.

7.6.3 Age and Condition A summary of the average age and life expectancy as well as condition assessment data for the Aquatic Venues is shown in Section 7.3 above. More detailed data for Baywave components is contained in Accela asset management software, including associated data confidence grades. This condition grade is required to be reduced down in status of to one ‘fair’ based on recent discoveries related to the buildings structural integrity. It has become apparent that there are defects within the overall design of the building meaning that current EQ standards are not met. This will mean that structural strengthening will have to be completed to ensure that the facility is brought up to meet these standards. The main areas of work required are within the end tilt slabs of the building which are showing cracking, the hydro-slide stair junction to the end tilt slab on the western end of the building and the mezzanine floor of the gym. BVL currently have BECA overseeing the testing of the current structure including seismic testing and modelling based on original plans. In addition to the above

18-28 Bay Venues Ltd Asset Management Plan Page 89 of 143 systemic issues we have an additional problem of water ingress to the underground plant room servicing the Aquatic element of the facility. This ingress is coming through the concrete floor slab. Again we have employed a specialist hydrologist through BECA and in conjunction with (as well as other field experts) have carried out extensive testing to try and determine the source of the water and its effect on the facility, particularly in relation to its structure. To date it has been found that there are potentially a number of factors involved; a much higher ground water level than experienced in previous years due to excessive rain fall, an addition to the ground water from a bore leak as well as potential pool water supplementation. In June 2018 we investigated and repaired a collapsed casing in the reinjection bore. The bore was re-cased with a smaller diameter pipe to 100m and drilled to 170m. As a precaution, we also temporarily re-cased the production bore to 50m with. This temporary fix is expected to get us through the next two years, allowing all structural investigations to be completed. An informed, holistic decision can then be made regarding the future of the facility.

8.6.4 Asset Capacity and Performance As with all geothermally reliant venues, risk of closure due to bore failure remains constant. Recent investments in spare pumps and motors however have reduced the risk of major closure from up to three days down to less than 24 hours. As the venue continues to age and increase in patronage, proactive assessment, maintenance and renewals will remain a focus. Recent progressive installation of ultra violet disinfection has decreased the level of chloramines in the atmosphere and will significantly increase the life expectancy of assets within the building, particularly electrical components. Continued capital investment in new and exciting attractions should become a focus for BVL to ensure patronage is not lost to nearby cities with a greater variety of water features, such as Hamilton and Rotorua. The geothermal water is a finite source and is monitored both internally by BVL staff and Bay Of Plenty Regional Council Given the importance of this venue to the area a long term risk strategy should be considered in the event of reduced ability to heat geothermally.

7.6.4 Resource Consents Activities associated with the LCM of Baywave TECT Aquatic & Leisure Centre operate under the following resource consents:

Table 28: Resource Consents governing the LCM of Baywave TECT Aquatic & Leisure Centre

Consent No. Purpose / Description Location Granted Expires

63227-1 For use in swimming pool heating and Baywave, Girven 28-Jul-05 31-Jul-20 space heating on the consent holders Road, Mount property at Tauranga Aquatic Centre, Maunganui, Girven Road, Mount Maunganui. Tauranga

7.6.5 General LCM Strategies and Plans Operations & Maintenance Plan and Projected Operational Expenditure The same general approach has been used as for Baypark Stadium. On-going investigatory work in relation to both the seismic structural strengthening and the plant room water ingress are set to continue. Current estimations for the seismic work are in the region of $5 million, the cost of completing the plant investigation is estimated at $20,000 with rectification costs still unknown pending further information.

Renewal and Capital Development Plan and Projected Capital Expenditure The same general approach has been used as for Baypark Stadium. The following projects stand out as renewal and capital items over the next ten years.  Major upgrade stage 1 – 2019/20 $1.3million (aqua play, changing rooms, spectator facilities)

18-28 Bay Venues Ltd Asset Management Plan Page 90 of 143  Major Upgrade stage 2 – 2021/22 $600,000 (entry, reception, external space)  Renewal – HVAC $285,000 2018/19 and $275,000 2027/28  Renewal – Pool dosing, heating and filtration systems $400,000 2019/20 and $300,000 2027/28  Renewal – Gym Equipment $600,000 2021/22, $600,000 2024/25 and $500,000 2027/28  Renewal – painting $80,000

Disposal Plan and Projected Disposal Expenditure There are currently no plans to dispose any assets other than those being replaced as part of the renewals or upgrade programme described in the Renewal and Capital Development Plan outlined above.

18-28 Bay Venues Ltd Asset Management Plan Page 91 of 143 7.7 Mount Hot Pools

7.7.1 Overview This facility was commissioned in 1969 and refurbished in 1981. The Hot Pools are located at the base of Mauao and consist of a sit and soak passive pool, an active pool, toddler’s pool, three massage rooms, two open air spas and three private pool rooms. The pools are salt water chlorinated, complimented with sodium hypochlorite for disinfection. Major pipe replacement work was undertaken in 2011 due to a substantial leak discovery. In 2016 Mount Hot Pools undertook an extensive refurbishment which included a reconfiguration of reception and office areas, upgrading of changing facility floors, walls and utilities, along with pool side aesthetics such as painting, planting and a large sun deck. The activities that occur at the Hot Salt Water Pools are general rest and relaxation, informal play and recreation, aqua fitness, massage service, promotional events and structured school groups.

Figure 26: Photograph of Mount Hot Pools

7.7.2 Asset Value and Depreciation A summary of the Asset Value and Deprecation data for the Aquatic Venues is shown in Section 7.3 above. More detailed data for Mount Hot Pools components is contained in Accela asset management software.

7.7.3 Age and Condition A summary of the average age and life expectancy as well as condition assessment data for the Aquatic Venues is shown in Section 7.3 above. More detailed data for Mount Hot Pools components is contained in Accela asset management software, including associated data confidence grades.

7.7.4 Asset Capacity and Performance The Mount Hot Pools is one of the main tourist attractions in the Tauranga area. The 2016 refurbishment focussed on enhancing many of the aesthetic components of the venue. The pools and plant room

18-28 Bay Venues Ltd Asset Management Plan Page 92 of 143 equipment are experiencing some age related deterioration and upgrade works to those assets are required. Improvements in proactive maintenance and renewals programmes have enabled BVL to maintain levels of service but to continually grow patronage at the venue, a major redevelopment should be considered long term. The former Tauranga City Aquatics Limited were declined a major redevelopment in 2011 by the Environment Court. The Mount Hot Pools (as with all BVL pools) is heated by geothermal water. The water at the Mount is, however much higher in iron bacteria. This iron bacteria often reaches levels where heat exchange flushes are required. The geothermal water is a finite source and is monitored both internally by BVL staff and externally by Bay Of Plenty Regional Council. Given the importance of this venue to the area a long term risk strategy should be considered in the event of reduced ability to heat geothermally.

7.7.5 Resource Consents Activities associated with the LCM of Mount Hot Pools operate under the following resource consents:

Table 29: Resource Consents governing the LCM of Mount Hot Pools

Consent No. Purpose / Description Location Granted Expires

67099-1 The purpose of this consent is to discharge a Mount Hot 12-Jun-12 30-Nov-27 contaminant (clear bore) to the geothermal aquifer for Pools, 21 the purpose of clearing accumulated deposits from iron Adams Avenue, bacteria, and the associated abstraction of mixed fluid Mount which will then be disposed of to the reticulated sewer Maunganui system.

66582-2 To take seawater from Tauranga Harbour for use in a Mount Hot 6-Jun-11 30-Nov-27 public swimming pool, to take geothermal water from a Pools, 21 bore to heat that seawater, and for use in under floor Adams Avenue, heating, and to discharge the used warm geothermal Mount water via the Adams Avenue storm water drain, into Pilot Maunganui Bay, Tauranga Harbour.

7.7.6 General LCM Strategies and Plans Operations & Maintenance Plan and Projected Operational Expenditure The same general approach has been used as for Baypark Stadium. There are no projects that stand out as operational and maintenance items. All operational and maintenance items are considered as minor. Renewal and Capital Development Plan and Projected Capital Expenditure The same general approach has been used as for Baypark Stadium. The following projects stand out as renewal and capital items.  Outdoor concourse extension $60,000  Renewal – pool filtration, pumps and dosing systems $465,000  Renewal – heating and filtration systems $200,000

Disposal Plan and Projected Disposal Expenditure There are currently no plans to dispose any assets other than those being replaced as part of the renewals or upgrade programme described in the Renewal and Capital Development Plan outlined above.

18-28 Bay Venues Ltd Asset Management Plan Page 93 of 143

7.8 Otumoetai Pool

7.8.1 Overview This facility was commissioned in early 1968 and consists of a 25m pool and a learner pool. The pools are located adjacent the Otumoetai college. The toilets and change areas were upgraded in 2011, however further extensive work should be considered. The activities that occur at the Otumoetai are informal play and recreation, aqua fitness, promotional events, structured user groups and school events. In 2002 a structured membrane and air handling unit was added to enclose this facility.

Figure 27: Photograph of Otumoetai Pool

7.8.2 Asset Value and Depreciation A summary of the Asset Value and Deprecation data for the Aquatic Venues is shown in Section 7.3 above. More detailed data for Otumoetai Pools components is contained in Accela asset management software.

7.8.3 Age and Condition A summary of the average age and life expectancy as well as condition assessment data for the Aquatic Venues is shown in Section 7.3 above. More detailed data for Otumoetai Pools components is contained in Accela asset management software, including associated data confidence grades.

18-28 Bay Venues Ltd Asset Management Plan Page 94 of 143 7.8.4 Asset Capacity and Performance Otumoetai Pool is home to the Otumoetai Swim Club and Otumoetai College. Approximately 50% of the venues use is between these two groups. The pool is in a relatively unattractive area for the general public with a long walk from a poorly lit carpark. It also lacks the many features required of a modern aquatic facility, hence the low percentage use of the venue by the general public outside of school and club contracted hours. Long term consideration should be given to the future of Otumoetai pool and if it is currently in a suitable place to enable continued growth of patronage other than the school and swim club.

7.8.5 Resource Consents Activities associated with the LCM of Otumoetai Pool operate under the following resource consents:

Table 30: Resource Consents governing the LCM of Otumoetai Pool

Consent No. Purpose / Description Location Granted Expires

20286-0 For the purpose of heating the Otumoetai 3-Feb-77 1-Oct-26 Otumoetai Swimming Pool. Swimming Pool, Windsor Road, Otumoetai, Tauranga

7.8.6 General LCM Strategies and Plans Operations & Maintenance Plan and Projected Operational Expenditure The same general approach has been used as for Baypark Stadium. There are no projects that stand out as operational and maintenance items. All operational and maintenance items are considered as minor. Renewal and Capital Development Plan and Projected Capital Expenditure The same general approach has been used as for Baypark Stadium. The following projects stand out as renewal and capital items over the next ten years:  $640,000 provision to upgrade building and heat learners pool if new facility does not proceed  Renewal – building remedial report (as per Opus report) $127,000  Renewal – pipe replacements $700,000  Renewal – roof panel replacements $160,000

Disposal Plan and Projected Disposal Expenditure There are currently no plans to dispose any assets other than those being replaced as part of the renewals or upgrade programme described in the Renewal and Capital Development Plan outlined above.

18-28 Bay Venues Ltd Asset Management Plan Page 95 of 143 7.9 Memorial Pools

7.9.1 Overview These pools, located within the grounds of Memorial Park, are the oldest aquatic facilities within the BVL network. Commissioned in 1958, these pools are also considered ageing and requiring refurbishment. The pools are seasonal and open for 6 - 7 months of summer each year and closed during the winter months. The activities that occur at the Memorial Pool are informal play and recreation, promotional events, structured user groups and school events.

Figure 28: Photograph of Memorial Pool

7.9.2 Asset Value and Depreciation A summary of the Asset Value and Deprecation data for the Aquatic Venues is shown in Section 7.3 above. More detailed data for Memorial Pools components is contained in Accela asset management software.

7.9.3 Age and Condition A summary of the average age and life expectancy as well as condition assessment data for the Aquatic Venues is shown in Section 7.3 above. More detailed data for Memorial Pools components is contained in Accela asset management software, including associated data confidence grades. It is expected that some work will need to be conducted on the Memorial production bore if it is to be continued as a viable facility over the next few years. This season a severe drop in the level of quality in bore water occurred (high levels of grit/sand stones) causing failure of plant and closure of the facility. This was able to be temporarily remedied but to ensure on-going confidence in the resource a new bore should be drilled. This has been delayed due to the proposed plans for an upgraded facility as part of the Tauranga Central Hub project which may well require a new bore with different consent requirements. Resources are available to replace the current bore prior to the coming season however this is currently on hold. The pool tanks themselves are also of concern at this facility as there are breaches in the pool return scupper lines meaning that there is a loss of water to the surrounding ground area during operation of the facility. Rectification of these issues is estimated to cost more than that of complete replacement of the pool tanks themselves. Again this would not occur should the Hub development be green lighted.

18-28 Bay Venues Ltd Asset Management Plan Page 96 of 143

7.9.4 Asset Capacity and Performance Memorial Pools is located in Memorial Park, only a ten minute walk from the central city and is a very popular location for families in summer. Memorial Pool is opened for the summer months, generally between Labour Weekend and the end of term one (school terms). A feasibility study for a proposed development in 2022 at Memorial Park is due to commence in 2018. This study will consider the integration various activities undertaken at the park, including indoor recreation and aquatics.

7.9.5 Resource Consents Activities associated with the LCM of Memorial Pool operate under the following resource consents:

Table 31: Resource Consents governing the LCM of Memorial Pool

Consent No. Purpose / Description Location Granted Expires

20779-1 For the purpose of providing warm Memorial Park, 5-Mar-81 1-Oct-26 water for a swimming pool heat Tauranga exchanger and disposing of the water after use at the Tauranga City Pool, Memorial Park, Tauranga.

7.9.6 General LCM Strategies and Plans Operations & Maintenance Plan and Projected Operational Expenditure The same general approach has been used as for Baypark Stadium. There are no projects that stand out as operational and maintenance items. All operational and maintenance items are considered as minor. Renewal and Capital Development Plan and Projected Capital Expenditure The same general approach has been used as for Baypark Stadium. The following projects stand out as renewal and capital items.  CBD Recreation and Leisure Hub feasibility study $150,000  $2.2m provision to upgrade Memorial Pool if the CBD Recreation & Leisure Hub does not proceed  CBD Recreation & Leisure Hub $30million - $5million preparatory works and $25million construction  Renewal – pipe, tile and pool replacements $700,000

Disposal Plan and Projected Disposal Expenditure There are currently no plans to dispose any assets other than those being replaced as part of the renewals or upgrade programme described in the Renewal and Capital Development Plan outlined above.

18-28 Bay Venues Ltd Asset Management Plan Page 97 of 143 7.10 Greerton Aquatic & Leisure Centre

7.10.1 Overview The facility was officially opened by Mayor R.A. Owens on 27th November 1971.The facility consists of:  A Lap pool - 25m (the roof was installed in 1986)  Hydrotherapy Pool – 18m (33 degrees) with access ramp (opened in 1972, a roof was added in 2000)  Learners pool – 15.3m (33 degrees). The Learners Pool was separated from the main filtration system and had a new plant and heating system, sand filtration, installed in July 2016. This now services as the main Learn To Swim pool (Bayswim)  An upstairs health club – ClubFit (this was originally an area added in 1975 for the Greerton Amateur Swim Club and converted to a health club in 1986) The activities that occur at Greerton are learn to swim, informal play and recreation, aqua fitness, promotional events, structured user groups and school events.

Figure 29: Photograph of Greerton Pool

7.10.2 Asset Value and Depreciation A summary of the Asset Value and Deprecation data for the Aquatic Venues is shown in Section 7.3 above. More detailed data for Greerton Pools components is contained in Accela asset management software.

18-28 Bay Venues Ltd Asset Management Plan Page 98 of 143 7.10.3 Age and Condition A summary of the average age and life expectancy as well as condition assessment data for the Aquatic Venues is shown in Section 7.3 above. More detailed data for Greerton Pools components is contained in Accela asset management software, including associated data confidence grades.

7.10.4 Asset Capacity and Performance Greerton Aquatic & Leisure Centre is located on Kiteroa Street, adjacent to Morland Fox Park. The ground floor consists of a 25m lap pool, learner’s pool and a warmer hydrotherapy/learn to swim pool. The first floor consists of a health club, primarily free weights and machines, an office and toilet. Consistent renewals and ongoing planned maintenance over the past five years has ensured Greerton has been presented very well for a venue of its vintage.

7.10.5 Resource Consents Activities associated with the LCM of Greerton Aquatic & Leisure Centre operate under the following resource consents:

Table 32: Resource Consents governing the LCM of Greerton Aquatic & Leisure Centre

Consent No. Purpose / Description Location Granted Expires

20720-0 For the purpose of providing warm Greerton Amateur 4-Sep-80 1-Oct-26 water for a swimming pool heat Swimming Club exchanger and disposing of the water Pool, Corner after use at the Greerton Amateur Kiteroa and Carlisle Swimming Club Pool, corner of Streets, Greerton, Kiteroa and Carlisle Streets, Tauranga Tauranga.

7.10.6 General LCM Strategies and Plans Operations & Maintenance Plan and Projected Operational Expenditure The same general approach has been used as for Baypark Stadium. There are no projects that stand out as operational and maintenance items. All operational and maintenance items are considered as minor. Renewal and Capital Development Plan and Projected Capital Expenditure The same general approach has been used as for Baypark Stadium. The following projects stand out as renewal and capital items.  Major Upgrade stage 1 - 2019/20 $879,000 (changing rooms, entranceway, learn to swim changing facilities)  Major Upgrade stage 2 – 2023/24 $600,000 (spa, sauna plant)  Greerton Clubfit flat floor space $850,000  Renewal – pool dosing, filtration and finishes $330,000  Renewal – gym re-clad $100,000  Renewal – gym equipment $120,000  Renewal – pool filtration and finishes $120,000 Disposal Plan and Projected Disposal Expenditure There are currently no plans to dispose any assets other than those being replaced as part of the renewals or upgrade programme described in the Renewal and Capital Development Plan outlined above.

18-28 Bay Venues Ltd Asset Management Plan Page 99 of 143 7.11 Queen Elizabeth Youth Centre

7.11.1 Overview The Queen Elizabeth Youth Centre (QEYC) is located in Memorial Park on the corner of 11th Ave and Devonport Roads in the central city. The QEYC is a versatile multi-purpose venue with the ability to host events and tournaments – from community and national sporting fixtures through to trade shows, expos and cultural shows, and small concerts. Following facilities are located within the QEYC:

 QE Stadium The QE stadium hosts mainly community sporting and recreation activities and can be converted to cater for small to medium events. It features a recessed stage, two courts, a small non-commercial kitchen, a tournament room and retractable and fixed seating.

 Memorial Hall Memorial Hall is a one court facility with a 280 seat fixed grandstand. It is used mainly for regular community and recreation activities and small events and displays. The hall also has a non- commercial kitchen available for hire.

Figure 30: Photograph of QEYC

7.11.2 Asset Value and Depreciation A summary of the Asset Value and Deprecation data for the Indoor Recreation Venues is shown in Section 7.3 above. More detailed data for QEYC and Memorial Hall components is contained in Accela asset management software.

7.11.3 Age and Condition A summary of the average age and life expectancy as well as condition assessment data for the Indoor Recreation Venues is shown in Section 7.3 above. More detailed data for QEYC and Memorial Hall components is contained in Accela asset management software, including associated data confidence grades.

18-28 Bay Venues Ltd Asset Management Plan Page 100 of 143 The QEYC was opened on the 25th March in 1965 and went through a significant upgrade in 2007. This included the joining together of Memorial Hall to the QEYC with the creation of a foyer/reception area. Upgrades also included changing the entry point of the venue, the addition of retractable grandstands, and upgrading the toilet and change areas.

7.11.1 Asset Capacity and Performance The QEYC is the oldest sport stadium in the BVL network and despite its age the venue presents solidly. However, with age comes maintenance challenges. Despite upgrades to both the stadium building and the roofing – maintaining a watertight stadium in significant weather events continues to be an issue.

There is both a renewals and maintenance programme attached to the QEYC and Memorial Hall, however much of the year on year work is increasing in cost and frequency – often beyond the scope of the budgeted funds. The retrofit of any renewals assets into the venue usually also causes significant costs due to the age or condition of the previous infrastructure. Despite this the outward appearance of the QEYC venue remains solid.

Memorial Hall is showing its age internally with issues around aesthetics, temperature control and ventilation. The venue roof is unlined and the walls are partially lined which severely affects temperature in the building. In the summer the hall is very hot, in the winter the hall is very cold. Consideration is currently being given to lining the roof and walls to manage these issues. Memorial Hall has an issue with the ventilation at subfloor level. There is no through ventilation beneath the floor meaning the floorboards are subject to moisture changes, causing them to expand and contract, in turn creating cracking in the polyurethane floor coating. The issues around ventilation mean that in high humidity, the court space can be rendered unusable.

7.11.2 General LCM Strategies and Plans

Operations & Maintenance Plan and Projected Operational Expenditure The same general approach has been used as for Baypark Stadium. The following projects are regular maintenance requirements:  Retractable seating  Roof and wall mounted basketball hoop systems  Lifts  Air Handler Units  Interior and exterior repainting  Exterior, guttering and roof cleans

Renewal and Capital Development Plan and Projected Capital Expenditure The same general approach has been used as for Baypark Stadium. The following items of required new capital and renewal expenditure have been identified:  Roof access system $55,000  Renewal – Memorial Hall flooring $173,000  Renewal – QEYC ceiling finish $60,000  Renewal – QEYC wall painting $57,000

18-28 Bay Venues Ltd Asset Management Plan Page 101 of 143 Disposal Plan and Projected Disposal Expenditure There are currently no plans to dispose any assets other than those being replaced as part of the renewals or upgrade programme described in the Renewal and Capital Development Plan outlined above.

18-28 Bay Venues Ltd Asset Management Plan Page 102 of 143 7.12 Mount Sports Centre

7.12.1 Overview The Mount Sports Centre (MSC) is conveniently located on the main road into Mount Maunganui. It is on the corner of Blake Park, placing it in close proximity to an array of other sporting facilities. The facility not only caters for sporting codes but also regularly hosts dance, martial arts, recreational programs, expos, and social and music events. The facility includes the following features:

 Full sized indoor court with floor markings for basketball, netball, volleyball and badminton  Fully equipped (non-commercial) kitchen  Mezzanine area with kitchenette and seating for 50 people  Meeting room  The total venue capacity is 972 people. The facility is available for hire seven days a week 8am – midnight.

Figure 31: Photograph of Mount Sports Centre

7.12.2 Asset Value and Depreciation A summary of the Asset Value and Deprecation data for the Indoor Recreation Venues is shown in Section 7.3 above. More detailed data for MSC components is contained in Accela asset management software

7.12.3 Age and Condition A summary of the average age and life expectancy as well as condition assessment data for the Indoor Recreation Venues is shown in Section 7.3 above. More detailed data for MSC components is contained in Accela asset management software, including associated data confidence grades. The Mount Sports Centre was opened in 1967. It has had minor upgrades to areas such as the toilets, changing rooms and kitchen over the years. However, it has not had a significant or complete upgrade since it opened.

7.12.4 Asset Capacity and Performance As a single court facility, and due to its age and design the MSC is less functional than many BVL venues, contributing to lower utlisation levels. The age of the venue also presents some aesthetic and maintenance challenges. The renewal and capital development plan for the venue (below) focusses

18-28 Bay Venues Ltd Asset Management Plan Page 103 of 143 on enhancing the user experience by improving the appearance and functionality of core features of the venue such as the stadium lighting, kitchen quality and equipment provision.

7.12.5 General LCM Strategies and Plans Operations & Maintenance Plan and Projected Operational Expenditure The same general approach has been used as for Baypark Stadium. The following items are regular maintenance requirements  Lighting  Internal walls  Exit Door fittings  Interior and exterior repainting  Exterior, guttering and roof cleans  Toilet floors

Renewal and Capital Development Plan and Projected Capital Expenditure The same general approach has been used as for Baypark Stadium. No major items of renewal or capital expenditure have been identified.

Disposal Plan and Projected Disposal Expenditure There are currently no plans to dispose of any assets other than those being replaced as part of the general renewals programme.

18-28 Bay Venues Ltd Asset Management Plan Page 104 of 143 7.13 Community Halls

7.13.1 Overview BVL own five Community Halls. The age of the buildings, dated facilities, parking limitations and lack of availability in peak times present challenges for the use of the halls in their current format. Whilst use levels of most halls have increased in recent years, buildings that can accommodate several user groups at one time are far more successful in our venue network. The wooden floor facilities are popular for dance, exercise and other recreational activities, which includes wheelchair sports, roller- skating, and support/hobby groups. There is growing demand for private, cultural and religious events, particularly at Greerton Hall.

Table 33: Asset Description Community Halls Venue: Asset Description: Bethlehem Hall Large wooden floor venue with a 370 max capacity. Main floor is 357 square metres, plus stage, fixed seating areas, and lounge. 120 chairs plus 11 fixed seating booths, 20 large trestle tables plus 11 small trestle tables. Small raised stage with adjoining DJ booth, with fitted sound system. Carpeted lounge area next to kitchen can be opened into hall area. Kitchen has a pie warmer and pass-throughs open into main hall area and lounge. Accessible bathroom, accessed separately from Male and Female bathrooms, has a baby change table installed. Ceiling heaters operated by $2 coin for 45 mins heating. Projector screen installed. Greerton Hall Large wooden floor venue with a 360 max capacity. Main floor is 357 square metres, plus stage, annex and kitchen servery areas. 200 chairs, 20 large trestle tables. Large raised stage with dressing rooms fitted with toilet cubicles. Large, commercial-grade kitchen is stocked for 180, has a pie warmer and pass-through can be opened into hall area. Accessible bathroom, accessed separately from Male and Female bathrooms. Ceiling heaters and wall-mounted fan heaters operated by 50c coin per heating type for 20 mins heating. Matua Hall Small to Medium-sized venue with a 176 max capacity. Main floor is 189 square metres, plus fixed seating. 100 chairs plus fixed seating benches, and 15 large trestle tables. Carpeted lounge area with 3 couches and 2 coffee tables. Lounge is next to kitchen and pass-through can be opened into hall area. Small kitchen opens into main hall area and lounge. Heat pumps operated by switch and remote control. Projector screen and system installed. Tauriko Hall Medium-sized venue with a 240 max capacity. Main floor is 180 square metres with a mixture of carpet and wooden floor finishes. 100 chairs and 10 large trestle tables. Small raised stage with fitted sound system. Large kitchen can be opened into hall area. Ceiling heaters operated by switch. Welcome Bay Hall Small to Medium-sized wooden floor venue with a 180 max capacity. Main floor is 230 square metres, plus fixed seating. 100 chairs plus fixed seating benches, and 10 large trestle tables. Kitchen is stocked for 50 people, has a pie warmer and pass-through can be opened into hall area. Ceiling heaters operated by 50c coin for 20 mins heating. All hall kitchens are equipped with a fridge, freestanding stove, microwave and hot water zip. All halls provided a cleaning cupboard stocked with mops, brooms, buckets, vacuums (as needed), and consumables to keep facilities clean during bookings.

18-28 Bay Venues Ltd Asset Management Plan Page 105 of 143 Figure 32: Photograph of Welcome Bay Hall

7.13.2 Asset Value and Depreciation A summary of the Asset Value and Deprecation data for the Community Hall Venues is shown in Section 7.3 above. More detailed data for each hall is contained in Accela asset management software.

7.13.3 Age and Condition A summary of the average age and life expectancy as well as condition assessment data for the Community Halls is shown in Section 7.3 above. More detailed data for each halls components is contained in Accela asset management software, including associated data confidence grades.

Table 34: Asset Age Community Halls

Venue: Date Constructed:

Bethlehem Hall 1960s

Greerton Hall 1960

Matua Hall 1950s

Tauriko Hall Pre-1943

Welcome Bay Hall 1977

The halls require ongoing maintenance to keep the buildings in good condition. Some facilities have been built with domestic finishes (e.g. Greerton Hall front doors) which are not coping with frequent community use. All halls, except Welcome Bay Hall, are over 50 years old – the Economic Life for a community building. All venues are serviced by public car parking facilities which are increasingly congested. The buildings are constructed from a variety of materials, including weatherboard, brick or fibrolite exterior finishes. Roof finishes are corrugated iron or colour steel.

18-28 Bay Venues Ltd Asset Management Plan Page 106 of 143 7.13.4 Asset Capacity and Performance Greerton Hall and Welcome Bay Hall have modern kitchens equipped, which are well utilised. Bethlehem Hall and Tauriko Hall have large kitchens with dated cabinetry and appliances, and do not provide any kitchen ware such as crockery, cutlery and mugs. Matua Hall has a small kitchenette area with the fridge stored in an adjacent equipment room. Consideration needs to be given to upgrading the kitchen facilities at these three facilities to reduce waste caused by using plastic plates, etc., and to meet demand.

These facilities need consideration for upgrades of audio-visual technology, internet capabilities and meeting room facilities such as whiteboards. Bethlehem Hall and Matua Hall are equipped with outdated sound equipment.

The halls generally have good utilisation with use in 2016/17 up by approximately 10% from the use levels recorded in 2015/16.This growth trend is not predicted to continue due to limited space in peak- demand times (3pm – 9pm Mon-Fri, and 8am – 1pm Sun).

Increased noise complaints to TCC for events at Greerton Hall add frustration to booking this venue for any activity requiring music. Consideration should be given to noise-proof these halls to make them more suitable for these types of uses which are desired by the community.

7.13.5 General LCM Strategies and Plans Operations & Maintenance Plan and Projected Operational Expenditure The same general approach has been used as for Baypark Stadium. The following items are regular maintenance requirements

 Lighting  Bathroom fittings  Tables & chairs  Air Conditioning units/heaters  Floor surfaces and carpets  Interior and exterior repainting  Fire exit doors

Renewal and Capital Development Plan and Projected Capital Expenditure The same general approach has been used as for Baypark Stadium. No major items of renewal or capital expenditure have been identified. Disposal Plan and Projected Disposal Expenditure There are currently no plans to dispose of any assets other than those being replaced as part of the general renewals programme.

18-28 Bay Venues Ltd Asset Management Plan Page 107 of 143

7.14 Papamoa Sport and Recreation Centre

7.14.1 Overview The Papamoa Sport and Recreation Centre (PSRC) was originally developed by the community in 1994. TCC took over the facility in 2004. Asset ownership was transferred to BVL in 2013. The main features of the venue include:

 One large meeting room (272m2) which can be split into two rooms (Surfbreaker 162m2 and Dunes 110m2) with the use of a divider wall  Two smaller meeting rooms – Dritwood 72m2 and Seashell 38m2  The former Clubfit Papamoa area will be converted to an additional bookable meeting type space in August 2018  Commercial grade kitchen  Sports Cafe/Licensed Bar area linked to the Surfbreaker room  Changing and official facilities for team sports utilising the park including showers  All main rooms are air conditioned (manual operation)  The total venue capacity is 508 people.

The venues is popular for hosting private functions including weddings, birthdays, work parties and training conferences. Centre activities include yoga, indoor bowls, martial arts, Zumba, Mah Jong groups, Probus groups, music practices, sport club meetings, celebrations and much more.

Figure 33: Photograph of Papamoa Sport and Recreation Centre

7.14.2 Asset Value and Depreciation A summary of the Asset Value and Deprecation data for Community Centres is shown in Section 7.3 above. More detailed data for PSRC is contained in Accela asset management software.

7.14.3 Age and Condition A summary of the average age and life expectancy as well as condition assessment data for the Community Centres is shown in Section 7.3 above. More detailed data for PSRC components is contained in Accela asset management software, including associated data confidence grades.

18-28 Bay Venues Ltd Asset Management Plan Page 108 of 143 Papamoa Sports and Recreation Centre was established in 1994 by the Papamoa Sports and Recreation Trust .TCC took over the facility in 2004.

After consultation with existing users, the facility was re-configured in 2009 by Tauranga City Council to make it more suitable for multiple users groups. This was achieved by dividing the main hall area into two separate spaces and converting the former gaming area into a small meeting room. The large kitchen and bar area was also reconfigured to create an additional medium sized room adjacent to a new, compact commercial kitchen and a licensed sports café. As a result of the change, annual occupancy doubled from 38,590 in 2006/2007 to 77,739 by 2010/2011.

7.14.4 Asset Capacity and Performance Recent upgrades to the toilet facilities, carpet in main areas and interior painting has greatly improved the presentation of the centre. Continued investment in renewal of core areas of the centre and equipment will further assist this.

7.14.5 General LCM Strategies and Plans Operations & Maintenance Plan and Projected Operational Expenditure The same general approach has been used as for Baypark Stadium. The following items are regular maintenance requirements:  Lighting  Electrical fittings  Lino Floors – Scrubbing & Polishing

Renewal and Capital Development Plan and Projected Capital Expenditure The same general approach has been used as for Baypark Stadium. No major items of renewal or capital expenditure have been identified. Disposal Plan and Projected Disposal Expenditure With the closure of Clubfit Papamoa BVL is currently in the process of disposing of the gym equipment assets through a sale process. Some may be retained and relocated to other venues in the BVL network. Beyond that there are currently no plans to dispose of any assets other than those being replaced as part of the general renewals programme.

18-28 Bay Venues Ltd Asset Management Plan Page 109 of 143

7.15 Arataki Community Centre

7.15.1 Overview The Arataki Community Centre opened in September 2011. The objective for the Community Centre was “to create a heart for the community and to bring it together, to create a sense of belonging/ownership, to give the community a voice, to develop a sense of community pride and active participation.

There is little doubt the Centre has achieved its objective with over 50 regular user groups and as many repeat casual users utilizing the facility covering every demographic from the very young to the most senior citizens. Regular user groups include the arts, children’s groups, board games, church, dance, education, exercise, leisure groups, martial arts, meetings, music, social groups, sports and support services. The Centre is also hired out for community events, business meetings and private functions.

The centre has been a very successful community facility model attracting national accolades and recognition.

The main features of the centre are:

Heron & Dotterel Rooms These two function rooms have sprung wooden floors and large projector screens, both featuring large wall mirrors and can also open up into one large room. A great space for community activities, functions and conferences. Seating 80 each or 150 total conference style and 100 for a banquet setting. Room sizes are 80m2 each or 160m2 opened up

Sand Piper Room The Sand Piper room can seat up to 16 people around a meeting table or up to 25 without. Often used by clubs and committees. This room is carpeted and comfortable with its own temperature control.

Oyster Catcher Room The Oyster Catcher room seats up to 12 people around a meeting table or up to 20 without tables. Often used for one on one and small meetings. This room is carpeted and comfortable with its own temperature control.

Kingfisher Room This meeting/community room has a kitchenette, wall mounted projector screen and opens out onto Arataki Park. Often used for training groups and workshops that like refreshments during their course. This room seats 15 in a U shape table, 16 board room, 20 class room or 30 conference style. Room size 60m2

Penguin Room Our music oriented room has soundproofing and is acoustically sound. Great for bands, lessons, cultural groups, choirs etc. Alternatively groups looking for silence for recording and filming along with regular Meditation and Yoga. This room is also used for meeting and seats 18 in a U shape table, 22 board room, 20 class room or 40 conference style. Room size 60m2

Kitchen Our spacious kitchen has a large bench space with a servery into the foyer and out onto the sports fields. Appliances include a hot water zip, dishwasher, stove, microwave, fridge and freezer

18-28 Bay Venues Ltd Asset Management Plan Page 110 of 143 Figure 34: Photograph of Arataki Community Centre

7.15.2 Asset Value and Depreciation A summary of the Asset Value and Deprecation data for Community Centres is shown in Section 7.3 above. More detailed data for Arataki is contained in Accela asset management software.

7.15.3 Age and Condition A summary of the average age and life expectancy as well as condition assessment data for the Community Centres is shown in Section 7.3 above. More detailed data for Arataki components is contained in Accela asset management software, including associated data confidence grades. The centre opened in 2011 and is one of the newest facilities in the BVL network. It provides a modern, fit-for-purpose venue suitable for a wide range of uses. The Centre has over 50 regular user groups and as many repeat casual users covering every demographic from the very young to the most senior citizens.

7.15.4 Asset Capacity and Performance Whilst still a relatively new venue, the regular and high use levels create wear and tear on many components of the venue. This necessitated an upgrade which was undertaken in 2018 with replacement carpet, exterior painting and replacement of kitchen appliances. The centre is currently very well presented.

7.15.5 General LCM Strategies and Plans Operations & Maintenance Plan and Projected Operational Expenditure The same general approach has been used as for Baypark Stadium. The following items are regular maintenance requirements:  Lighting  Foyer Furnishings  Tables & chairs  Air Conditioning units  Heron/Dotterel Retractable wall  Interior and exterior repainting  Main entrance automatic doors

Renewal and Capital Development Plan and Projected Capital Expenditure The same general approach has been used as for Baypark Stadium. No major items of renewal or capital expenditure have been identified.

18-28 Bay Venues Ltd Asset Management Plan Page 111 of 143

Disposal Plan and Projected Disposal Expenditure There are currently no plans to dispose any assets other than those being replaced as part of the renewals or upgrade programme described in the Renewal and Capital Development Plan outlined above.

18-28 Bay Venues Ltd Asset Management Plan Page 112 of 143 7.16 University of Waikato Adams Centre for High Performance

7.16.1 Overview The Adams Centre for High Performance is located in the centre of Blake Park and opposite the Blake Park Hockey pavilion. The building was formerly known as the Mount Cosmopolitan Club and had been vacant since 2010. The Tauranga City Council purchased the property and BVL began the outfitting of the property early in 2015. The Adams Centre was open for use in January 2016 and had its official opening in April 2016. The main asset groups noted for Adams Centre for High Performance are:

 350 sqm high performance gym with the following key items:

o 8 weight stations as provided by Life Fitness ‘Hammer Strength’ o 6 WATT Bikes o 6 rowing machines o 3 treadmills  Environment Chamber with heat, humidity and altitude capabilities.

 Various meeting and office spaces.

Gymnasium 350 sqm of gym space including $500,000 of gym equipment supplied by Life Fitness, Concept 2 Rowing Machines and WATT Bikes. There is also a 3 x 35m turf track within the gym. Located within this area is a Treatment Room, a toilet block and cleaners storage area also housing the gym’s music system. Administration Office Internals The administration offices are on the ground and first floor levels. The ground floor offices include the reception area, two offices, three meeting rooms, NZR office space and the HP Manager. Tenanted space includes the University of Waikato which has an environment chamber, lab and 5 office spaces and a shared kitchen/bathroom with Body in Motion. The later tenant has a reception, storage room and 4 treatment rooms. The Foot Mechanics houses a treatment storage room. At the end of their area is a wooden floor area which is presently unused. On the first floor, there is a large meeting space, a handicap bathroom and another gender neutral toilet. Also on the first floor are further tenants Bay of Plenty Rugby Union which has a large open plan office space, also accessed with an exterior stairwell. The BOPRU area has the office for the Manager, toilets, laundry room, 3 meeting rooms and storage spaces. Construction is gib board lined ceilings and walls, paint finishes, carpet and vinyl floor coverings. Athletes Lounge and Kitchen A large open space with a commercial kitchen. Access to the upper level is via an internal staircases and a lift. Construction is suspended and gib board ceilings, gib board-lined walls, paint finishes, carpet and vinyl floor coverings. Services Above ground components and other services are summarised as follows:

 Plumbing and Drainage

o Installed and Maintained by Armstrong Plumbing

18-28 Bay Venues Ltd Asset Management Plan Page 113 of 143  Heating Ventilation and Air Conditioning

o Installed and maintained by All Season Air Conditioning  Electrical

o Installed and maintained by Aotea Electrical.  Fire Protection Systems

o Installed by Ultra Fire and currently maintained by Wormald Fire Services.  Underground services:

Figure 34: Photograph of University of Waikato Adams Centre for High Performance

7.16.2 Asset Value and Depreciation A summary of the Asset Value and Deprecation data for the Adams Centre is shown in Section 7.3 above. More detailed data for the Adams Centre is contained in Accela asset management software.

7.16.3 Age and Condition A summary of the average age and life expectancy as well as condition assessment data for the Adams Centre is shown in Section 7.3 above. More detailed data for Adams Centre components is contained in Accela asset management software, including associated data confidence grades. Prior to 2015 the building was in an extreme state of disrepair but has undergone a total renovation. The building is in now pristine condition.

18-28 Bay Venues Ltd Asset Management Plan Page 114 of 143 7.16.4 Asset Capacity and Performance The main asset groups noted for Adams Centre for High Performance are:

 High performance gym with the following key items:

 8 weight stations as provided by Life Fitness ‘Hammer Strength’

 6 WATT Bikes

 6 rowing machines

 3 treadmills

 Environment Chamber with heat, humidity and altitude capabilities.

 Various meeting and office spaces including a large common area located on the first floor with a fully equipped kitchen The 4 tenants currently in the building are:

 NZ Rugby: their wing consists of 4 offices, 1 team room and storage area.

 Bay of Plenty Rugby Union: currently leases the largest area in the building located on the first floor including a separate main entrance to their premises from the car park.

 The University of Waikato leased area consists of four offices and a lab including the environmental chamber.

 Body in Motion Sports Medicine clinic has 6 rooms and a large office where a podiatrist specialist is currently based. They share a kitchen and toilet facilities with the University of Waikato. This space is located at the back of both tenancies.

7.16.5 General LCM Strategies and Plans Operations & Maintenance Plan and Projected Operational Expenditure The same general approach has been used as for Baypark Stadium. There are no projects that stand out as operational and maintenance items. All operational and maintenance items are considered as minor. Renewal and Capital Development Plan and Projected Capital Expenditure The same general approach has been used as for Baypark Stadium. The following projects stand out as renewal and capital items:

 Building expansion $350,000

 Renewal – building and gym $300,000

 Renewal – HVAC $250,000

 Renewal – gym $300,000 Disposal Plan and Projected Disposal Expenditure There are currently no plans to dispose any assets other than those being replaced as part of the renewals or upgrade programme described in the Renewal and Capital Development Plan outlined above. Adjacent to the Adams Centre, at number 50 Miro Street is a residential house currently leased to the Bay of Plenty Rugby Union. This site was purchased from TCC in 2016 and is currently being considered as a development for accommodating visiting sports groups. There is, however no budget proposal for this in the current LTP

18-28 Bay Venues Ltd Asset Management Plan Page 115 of 143

8 Financial Forecast 8.1 Overview To undertake a sustainable, long-term approach to asset management, it is essential to prepare long- term financial forecasts. This allows a long term view of how the asset will be managed, how much this will cost and when additional funding may be required to meet expected service levels. These financial forecasts are a culmination of the previously discussed aspects of the Asset Management Plan such as:

 Community Consultation

 Levels of Service

 Demand Management

 Lifecycle Management

 Asset Lives

 Condition Ratings

 Asset Valuation. The above forms the basis of the long-term operations, maintenance and capital requirements. Funding requirements have also been included in the financial statements.

8.1.1 Expenditure Expenditure on BVL assets can be categorised into four main areas, which are discussed below: Operations and Maintenance Operations and Maintenance expenditure is that required for the day-to-day operation of the network whilst maintaining the current levels of service. Examples of this type of expenditure are Overheads and Minor replacements. Maintenance costs are generally subdivided into 3 groups, these are described in Table 35.

Table 35: Maintenance Types

Maintenance Type General Meaning Routine Day to day maintenance which is required on an ongoing basis and is budgeted for Proactive (Planned) Non day-to-day maintenance which is identified in advance and is incorporated into a maintenance budget for a certain time period Reactive (Unplanned) Maintenance that is unexpected and necessary to attend to immediately to continue operation of the service Renewal (Rehabilitation and Replacement) Renewal expenditure includes rehabilitation and replacement of assets to restore an asset to its original level of service, i.e. capacity or the required condition. Renewals expenditure forecasts cover the cost of asset renewal through its whole lifecycle through to disposal of the asset. Capital Works (New Works) Capital works (new works) involves the creation of new assets, or works, which upgrade or improve an existing asset beyond its current capacity or performance in response to changes in usage or customer expectations. Disposals Asset Disposal is the retirement or sale of assets whether surplus or superseded by new or improved systems. Assets may become surplus to requirements due to obsolescence, underutilisation, changes in policy etc.

18-28 Bay Venues Ltd Asset Management Plan Page 116 of 143 8.2 Asset Management Assumptions The basis for the financial forecasts is explained in Section 7 – Life Cycle Management. The following general assumptions have been made in preparing the expenditure forecasts:

 All expenditure is stated in NZ dollar values as at July 2018 with no allowance made for inflation over the planning period.

 Asset renewal costs are based on assessments from Beca, individual specialised contractors and staff wherever these are available. The timeframe for this varies between asset types due to base life, availability of condition information and performance data, access to the asset and ease of renewal forecasting for each asset type. Where no staff assessments are available (mainly outside the first 3 years of the plan), renewal needs are based on the life expectancy of the assets. The method used to calculate renewals forecasts are as follows: - From the known age and the life expectancy of the asset the year of renewal is calculated. - The Optimised Replacement Cost (Unit Rate) is used to calculate the renewal cost. - The renewal cost of each asset to be replaced in a year is summed to calculate the total renewals for each asset group in each year. - Peaks and troughs in these forecasts are smoothed out, as not all assets will need to be renewed in the exact year that renewal is calculated for.

 Maintenance costs are based largely on historical expenditure and assume there are no significant changes in contract rates (above the rate of inflation). Increases in maintenance budgets reflect the growth in the asset base. In some cases renewal budgets have been increased to address identified shortfalls in the consistent delivery of levels of service.

 Maintenance and renewal allocations have been based on preserving current levels of service, and expenditure levels have been increased to match the growth of new assets and achieve the target levels of service noted in the AMP.

 Assumptions have been made as to the average useful lives and average remaining lives of the asset groups based on current local knowledge, experience and historical trends. These are reviewed and improved over time based on assessments of asset deterioration.

 Capital development allocations have been based on meeting the current levels of service under the currently predicted growth rate and pattern of urban growth as forecast within SmartGrowth.

8.3 Maintenance Strategy and Planning

8.3.1 Operations & Maintenance Maintenance strategies cover the policies that will determine how BVL asset groups will be operated and maintained on a day-to-day basis to consistently achieve the optimum use of the asset. The work categories are defined as follows: Routine (General) Maintenance Routine maintenance is the regular ongoing day-to-day work that is necessary to keep assets operating, including instances where portions of the asset fail and need immediate repair to make the asset operational again. This work falls into two broad categories as follows: Proactive (Planned) Maintenance Proactive inspection and maintenance works planned to prevent asset failure. Reactive (Unplanned) Maintenance Reactive action to correct asset malfunctions and failures on an as required basis.

18-28 Bay Venues Ltd Asset Management Plan Page 117 of 143 A key element of asset management planning is determining the most cost-effective blend of planned and unplanned maintenance as illustrated in Figure38.

Figure 38: Balancing Proactive & Reactive Maintenance

The short-term maintenance strategy is intended to maintain the current levels of service standards. The long-term maintenance strategy will be modified to reflect the following factors:

 Risk of failure -The risk associated with failure of critical assets

 Levels of service - Changes in the current or agreed level of service

 Economic efficiency -Asset condition assessment

 Extend the life of the asset component -Asset improvements and development programme

 Legislative compliance – e.g. requirements of LGA 2002, RMA

8.3.2 Operations & Maintenance Programme Maintenance works are undertaken by a number of preferred Contractors and suitably qualified BVL staff. Maintenance work is a combination of planned and reactive work. Customer service requests are recorded via online feedback or internal customer feedback forms and summarise data on the date, time, details, responsibility, response time and action taken. These requests are assigned priority ratings, based on their urgency and attended to by the maintenance manager or contractor.

8.3.3 Operations and Maintenance Forecasts Future work needs and costs to ensure delivery of the defined levels of service include:

 Expected operational work.

 The nature, incidence and cost of reactive maintenance currently undertaken.

 Planned inspections and preventative maintenance.

 Expected planned maintenance work requirements.

 Managing assets to desired levels of service.

18-28 Bay Venues Ltd Asset Management Plan Page 118 of 143 8.4 Capital & Renewal Strategy and Planning

8.4.1 Renewal Works Renewal expenditure is work that restores an existing asset to its original level of service, i.e. capacity or the required condition. These broadly fit into the following work categories as follows: Rehabilitation Rehabilitation involves the repair of an existing asset, or asset component. Rehabilitation doesn’t provide for a planned increase in the operating capacity or design loading. It is intended to enable the assets to continue to be operated to meet the current levels of service. Replacement Replacement doesn’t provide for a planned increase to the operating capacity. Some minor increase in capacity may result from the process of replacement, but a substantial improvement is needed before asset development is considered to have occurred.

8.4.2 Renewal Strategy Renewal strategies provide for the progressive replacement or rehabilitation of individual assets that have reached the end of their useful life. This is managed at a rate that maintains the standard and value of the assets as a whole. This programme must be maintained at adequate levels to maintain current levels of service and the overall quality of assets. The general renewal strategy is to rehabilitate or replace assets when justified by: Asset Performance An asset is renewed where it fails to meet the required level of service. The monitoring of asset reliability, capacity and efficiency during planned maintenance inspections and operational activity identifies non-performing assets. Indicators of non-performing assets include:

 Structural failure.

 Repeated asset failure (breaks, faults).

 Ineffective and/or uneconomic operation.

 Unsafe conditions for the public. Economics When it is no longer economic to continue repairing the asset (i.e. the annual cost of repairs exceeds the annualised cost of its renewal). An economic consideration is the co-ordination of renewal works with other planned works. Risk The risk of failure and associated environmental, public health, financial or social impact justifies proactive action (e.g. probable extent of property damage, health and safety risk). Where such assets are identified (critical assets), proactive inspection is undertaken to determine asset condition at a frequency appropriate to the risk and rate of asset decay.

8.4.3 Renewal Works Programme While many of the smaller rehabilitation and replacement items are undertaken within the maintenance programme, all major rehabilitation and replacement works are programmed as renewal items and are managed in a similar way to new capital works. The renewal programme and expenditure forecast for the next 10 years still needs yearly adjustments as asset condition and data confidence improves. The financial projections are summarised in Table Capital (New) Works and Table 38 Renewals. Capital works are the creation of new assets or works, which upgrade or improve an existing asset

18-28 Bay Venues Ltd Asset Management Plan Page 119 of 143 beyond its existing capacity or performance in response to changes in usage or customer expectations. BVL recognises that capital works (asset development) and asset renewal can occur simultaneously. Development Planning Categories New works fall into separate categories as follows:

 Growth Any asset development (council funded or externally funded) that is required as a result of growth.

 Levels of Service Any asset development that is required as a result of an increase in levels of service.

 Legislative Any asset developed to meet legislative requirements.

 Vested Any assets vested (gifted) with Council. As required by schedule 10 of the LGA 2002, with respect to Council funded development work, this plan also identifies and differentiates requirements of additional asset capacity in terms of increased demand (e.g. growth) or increase in service provision levels and standards.

8.4.4 Capital & Renewal Forecasts Selection Criteria BVL, in cooperation with TCC carries out a prioritisation process of all necessary renewal or development works. The priority list is used to assign funds when preparing the financial plans. It is important that the process be regularly reviewed and that the cost estimates reviewed at detailed design stage and/or purchase. Forecast Tables 36 and 38 below represent the summary of the proposed capital and renewal expenditure for the next 10 years.

18-28 Bay Venues Ltd Asset Management Plan Page 120 of 143 Table 36: Forecast Capital Expenditure 2018 - 2028 $ BVL NEW CAPITAL 2018-28

25,659,000

8,998,000

5,678,700

2,394,700 1,550,000 657,174 80,000 114,000 105,000 70,000

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

A more detailed breakdown of forecast new capital expenditure by venue or business unit is provided below.

Table 37: New Capital Summary by Venue / Business Unit 2018 - 2028

18-28 Bay Venues Ltd Asset Management Plan Page 121 of 143 Table 38: Forecast Renewals Expenditure 2018 - 2028 $ RENEWALS SUMMARY 2018-28

6,698,627

4,225,507 3,853,577

3,066,852 2,814,055 2,493,843 2,338,704 2,249,450 1,659,375 1,217,459

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

A more detailed breakdown of forecast renewals expenditure by venue or business unit is provided below.

Table 39: Renewals Summary by Venue / Business Unit 2018 - 2028

8.5 Disposals Planning Strategy and Planning Disposal is the retirement or sale of assets whether surplus or superseded by new or improved systems. Assets may become surplus to requirements for any of the following reasons:

18-28 Bay Venues Ltd Asset Management Plan Page 122 of 143  Underutilisation.

 Obsolescence.

 Provision exceeds required level of service.

 Assets replaced before its predicted economic life.

 Uneconomic to upgrade or operate.

 Policy changes.

 Service provided by other means (e.g. private sector involvement).

 Potential risk of ownership.

At this time BVL have the following plans regarding the future disposal of BVL assets:

 House at 50 Miro Street – remove or demolish in the short to medium term subject to a business case for alternative use of the site

 PSRC gym equipment – due to the closure of the gym the majority of the equipment will be sold in 2018. Some items may be retained for relocation to other venues in the BVL network. BVL will also dispose of assets that become obsolete as a result of the renewal and upgrade programme. As part of the whole LCM of assets, it is vital to consider the costs of asset disposal in the long-term financial forecasts for an asset. The cost of asset disposal is expected to be incorporated within the capital cost of new works, or asset renewals.

8.6 Asset Valuation

8.6.1 Introduction Statutory financial reporting requires BVL to revalue its fixed assets at least every five years. An asset valuation is to be used for asset management (calculating long-term asset renewal projections), identifying loss of service potential (depreciation) and for financial reporting purposes.

8.6.2 Accounting Standards & Industry Guidelines BVL assets were re-valued in accordance with Financial Reporting Standard (FRS) and the NZ Infrastructure Valuation Guidelines in 201110. The results of this valuation were independently audited.

8.6.3 Valuation Process & Methodology Those asset classes that are revalued are valued on a three yearly valuation cycle on a basis described below. All other asset classes are carried at depreciated historical cost. The carrying values of all assets not revalued in any year are reviewed at each balance date to ensure that those values are not materially different to fair value. Buildings, improvements, plant and equipment were valued at fair value as determined from market-based evidence by an independent valuer. The most recent valuations were undertaken on 1 July 2011 by Property Solutions BOP Limited and related to all buildings and improvements. BVL Limited accounts for revaluations of Property, Plant and Equipment on a class of asset basis.

10 As of June 2018, updated valuations had not been finalised

18-28 Bay Venues Ltd Asset Management Plan Page 123 of 143 Table 40: Asset Data – Valuation Terminology

General Meaning

Gross Replacement Cost The cost of constructing a new infrastructure asset using the present day technology, and maintaining (GRC) the original service potential Optimised Replacement Cost The cost of the modern equivalent asset that would be used to replicated the existing asset. The asset (ORC) cost is ‘optimised’ down to allow for surplus capacity or technical obsolescence Depreciation Replacement DRC is the replacement cost after deducting the wear of an asset to reflect the remaining useful life of Cost (DRC) the asset. Calculated on the gross replacement cost of modern equivalent assets (MEA).

8.6.4 Asset Register BVL uses the TCC managed asset software system Accela. TCC went live with Accela through a staged implementation from October 2012 – December 2014, BVL went live in December 2014. Accela uses information merged from previous asset management systems (Confirm, SPM and Hansen). Information is now consolidated in the one system for BVL assets, and work is ongoing to continually improve the data integrity at BVL Venues. This register of assets excludes ‘whole assets’ such as a building and is broken down into assets within the building such as roof, floor, heating systems, etc. All BVL assets (excluding IT) are included in this system. Some work is required to confirm the quality and completeness of the asset data in this system.

8.6.5 Asset Assumptions (Valuation Assumptions) The assumptions that have been used in the valuation of BVL assets are as follows:

 Asset design lives as per manufactures recommendation.

 Growth assumptions as per SmartGrowth strategy.

 Levels of Service are maintained at the current levels.

8.6.6 Replacement Cost (Calculations) Annual replacement Costs are based on install date on an asset level, its life expectancy and any other factors reducing or extending an asset’s life. The method used to calculate renewals forecast is as follows:

 From the known age and the life expectancy of the asset the year of renewal is calculated. This is adjusted if necessary if additional information is available. This can be done on an asset level, by material type, area, type of use or any other factor affecting its replacement requirements.

 The Optimised Replacement Cost is used to calculate the renewal cost. The renewal cost of each asset to be replaced in a year is summed to calculate the total renewals for each asset group in each year. 8.7 Revenue and Financing Policies The Local Government Act 2002 requires the adoption of policies that outline how operating and capital expenditure for each activity will be funded. This is detailed in the Revenue and Financing Policy, which is included in TCC’s LTP. It is included in this AMP as BVL receives a rate funding subsidy towards its operations. The policy identifies:

 The community outcomes to which the activity primarily contributes.

 The distribution of benefits between the community as a whole, any identifiable part of the community, and individuals.

 The period in or over which those benefits are expected to occur.

 The extent to which the actions or inactions of particular individuals or a group contribute to the need to undertake the activity.

18-28 Bay Venues Ltd Asset Management Plan Page 124 of 143  The costs and benefits, including consequences for transparency and accountability, of funding the activity distinctly from other activities.

 The overall impact of any allocation of liability for revenue needs on the current and future social, economic, environmental and cultural wellbeing of the community. Other Funding and Financial Policies are summarised below, for detailed information on these policies, please refer to TCC’s LTP:  Significance: Provides guidance on identifying the significance of issues, proposals and decisions which substantively affect the Tauranga community, and to ensure that the community is engaged appropriately on issues which affect them.  Treasury: Identifies how TCC will manage its liabilities and investments.  Funding Depreciation and Use of Depreciation Reserves: Identifies how TCC will determine the extent to which it funds depreciation expenditure and will use depreciation reserves. Specifies fully funding depreciation expenditure and use of depreciation reserve.

 Debt Retirement Funding: Specifies what percentage of each activity’s debt will be repaid each year, using depreciation reserves in part to meet the repayments.

 Use of Financial Year Surplus or Deficit: Identifies how TCC will utilise projected and actual surpluses and deficits.  Procurement: Guides how TCC will obtain goods and services for the community, promote public/private partnerships and meet procurement requirements to enhance procurement outcomes.

 City Investment Partnerships: Outlines how TCC will develop relationships with individuals and other organisations to co-fund the establishment of new facilities.  Strategic Property: Sets criteria for the acquisition and divestment of property.  Rating: Identifies how TCC will set rates.  Rates Remission: Specifies the various remissions available and any associated requirements.  Rates Postponement: Identifies when a ratepayer may apply to have the payment of rates delayed.  Remission and Postponement of rates on Māori Freehold Land: Identifies criteria for remitting or postponing rates on Māori Freehold Land. 8.8 Risk to Significant Forecasting Assumptions The table below outlines the risks to significant forecasting assumptions. Should these assumptions prove to be incorrect there could be a significant effect on the level of rates to be collected from the community. If this were to occur, BVL would re-evaluate the works programmes to determine if the expenditure is appropriate and if TCC needs to have the rates altered accordingly or whether the scope of the proposed works could be scaled down.

Table 41: Risks to Significant Forecasting Assumptions

Risk Risk Likely Consequence/ Level Financial Mitigation Strategy Effect

Base life too short Low Minor This would result in over-charging of the community.

Base life too long Low Minor This would result in underfunding of the depreciation reserve, leading to insufficient renewal funds.

Asset condition not Medium Minor This could potentially result in underfunding of the depreciation reserve, leading taken into to insufficient renewal funds. TCC collects condition information on some of its consideration assets, to date; this information has not formed part of asset revaluations.

18-28 Bay Venues Ltd Asset Management Plan Page 125 of 143 Fixed asset register Medium Minor This would result in underfunding of the depreciation reserve, leading to incomplete insufficient renewal funds.

Fixed asset register Low Minor This would result in over-charging of the community. containing expired assets

18-28 Bay Venues Ltd Asset Management Plan Page 126 of 143 9 Business Processes 9.1 Overview This section covers the key Business Processes in place to assist TCC and BVL in delivering Asset Management and related services.

Figure 39: Key Business Process Chain

Identify Markets Acquire & Construct Provide Manage Perform Customer Develop Strategies Infrastructure Service Delivery Service

Lifecycle AM Information Organisation & Commercial Processes & Data & Knowledge Systems People Issues Tactics Practices

Required Service Asset Management Plans Performance

Specific detail is provided on the following aspects:

 Business Continuity Plan – which details BVL ability to function and respond to any crises.

 Civil Defence Emergency Management (CDEM) - The CDEM Group works together to reduce the potential effects of hazard events and to promote community and council readiness (preparedness).

 Plan Review & Monitoring – provides guidance on the long-term sustainability of this document.

 Compliance with LGA 2002 Schedule 10 requirements – Key elements within schedule 10 that directly relate to AMP have been assessed and the relevant sections of the plan have been referenced. This provides BVL with the confidence that the requirements have been covered.

 Service Delivery Mechanism and Quality Management – provides guidance on best practice of delivery and quality processes.

9.2 Civil Defence Emergency Management Baypark Stadium is a Tsunami evacuation zone. The stadium lounge is the primary evacuation assembly area. Should this exceed the maximum amount of people, Baypark Arena becomes the secondary assembly area. Civil Defence have an emergency kit stored at Baypark Arena and currently the Assets & Projects Manager is the contact person for access in the event of an emergency.

9.2.1 Why is a Plan Needed? The Bay of Plenty has a wide range of hazards, including flooding, earthquakes, volcanic eruption, fire and a range of technological hazards. These hazards can cause disruption and death in communities and we need to be ready to meet the challenges that hazard events create. It has been recognised for some years that emergency management needs to improve its ability to manage these hazards, respond to and recover from disasters, and to better coordinate limited emergency management resources. Communities need to be aware of the hazards and the potential consequences of these so that they are able to appropriately prepare for, respond to, and recover from a hazard event.

18-28 Bay Venues Ltd Asset Management Plan Page 127 of 143 The Civil Defence Emergency Management Group Plan provides the basis for civil defence and emergency management (CDEM) in the Bay of Plenty. The Plan is a requirement of the Civil Defence Emergency Management Act (CDEM Act) 2002. The Act requires that each Civil Defence Emergency Management Group has a plan to ensure that hazard management within the region occurs in an integrated and coordinated way. The plan must be consistent with the provisions of the CDEM ACT 2002. The Bay of Plenty CDEM Group will, by implementing the principles of emergency management, endeavour to develop a safe and sustainable environment where the public and infrastructure are best able to coexist with natural and technological hazards.

9.2.2 The Purpose of the CDEM Plan The purpose of this Plan is to provide a framework for civil defence and emergency management decisions to be made across the Bay of Plenty. The Plan also creates a commitment to the implementation of tasks and actions. It is expected that local authority long-term plans and the funding programmes of other agencies and groups will include financial or resource provision to enable the implementation of this Plan Development and Review.

9.2.3 Profile of the Bay of Plenty CDEM Group Area Jurisdictional Boundary Local authority boundaries are used to define the areas that CDEM Group plan cover. For the Bay of Plenty the following local authorities are part of the Plan:

 Kawerau District Council  Opotiki District Council  Rotorua District Council

 Tauranga City Council  Western Bay of Plenty District Council  Whakatane District Council

 Bay of Plenty Regional Council

Figure 40: Bay of Plenty CDEM Group Area

18-28 Bay Venues Ltd Asset Management Plan Page 128 of 143 9.2.4 Strategic Framework Principles of Civil Defence and Emergency Management The CDEM Act is designed to provide a framework within which the activities of emergency management can operate effectively in order to contribute to community recovery. In order for this to occur it is essential that emergency management be based on a number of basic principles. Six principles have been used in the development of the CDEM Group Plan for setting goals and developing operational and administration arrangements. The principles are:

 Increased Community Resilience.

 Sustainability.

 Holistic Community Management and Partnership.

 Comprehensive Emergency Management.

 Active Risk Management.

 Integrated Emergency Management Resources. All civil defence and emergency management actions should lead to a more resilient community. It is not possible for the emergency management teams to cater for every need that may arise in the event of an emergency.

9.3 Business Systems BVL operates an IT system supported under contract by Datacom Systems (Midlands). The table below sets out the IT applications used by BVL.

Table 42: Cornerstone Applications

Function Product Version (current and Group Responsible Primary users planned upgrades)

Word, spread sheets, email, Microsoft 2010 & 2013, 2016 on Business All staff Office (O365) some laptops performance

POS, Facility Bookings, Memberships, Links V2015.2 IT Services Most staff except for Event Stock, Classes (Learn to Swim) management & support

Event Management Ungerboeck V20.90 IT Services Event operations, Business Development, Catering, AV, Ops

Financial accounting and reporting Ozone V15.3.21 (32-bit) Business Managers/Supervisors performance and Finance staff

Time & Attendance Time Target Unsure IT/Payroll All wages staff

Corporate Planning Ozone V15.3.21 Business Managers performance

Debt Management Ozone V15.3.21 Finance Finance

POS for Events Swiftpos 6.15.330.56 IT/Catering Catering

Intranet SharePoint 2013 IT All permanent/part-time Online staff

Asset Management System Accela V 7.3.1.3 Assets & Projects Assets & Projects Manager Manager and Venue Managers

18-28 Bay Venues Ltd Asset Management Plan Page 129 of 143 Function Product Version (current and Group Responsible Primary users planned upgrades)

Asset Management System Powerplan 6.0.1 Assets & Projects Assets & Projects (formerly Manager Manager Riva)

After School Care & Holiday AimyPlus Unsure IT/OSCAR team OSCAR team Programmes Management

BVL are in the process of reviewing business systems. An Infrastructure Roadmap has been completed and has identified areas within the current environment that need attention.

The core production server infrastructure is scheduled to be moved to a hosted data centre facility in the 2018/19 financial year. Moving the production servers (presently located at Baypark) to a hosted data centre will enable BVL to mitigate risks with the current server room facilities and provide an ‘on- ramp’ to cloud services for future uptake.

Highly-resilient services need to be implemented and an upgrade of the disaster recovery servers (located at Baywave) is in progress and due for completion by end of June 2018.

Ongoing investment in Wi-Fi and Wi-Fi security will be implemented to meet growing business demand and the mobility requirements of both customers and staff.

Currently backups are performed overnight starting at 10:30pm and are backed up using Veeam Backup software to an EMC Data Domain located at Baywave this is then replicated to a second EMC Data Domain located at the Baypark Arena. Off-site backup solutions are being investigated to further mitigate the risk of damage to BVL data from an ever increasing list of malware.

AMP Review & Monitoring This plan is a living document, which is relevant and integral to daily activity. To ensure the plan remains useful and relevant the following on-going process of AMP monitoring and review activity will be undertaken:

 Formal adoption of the AMP by TCC.

 Update of AMP with the outcomes of LTP and Annual Plan processes, including outcomes of Issues & Options discussions.

 Update of Levels of Service / Performance Measures upon review.

 Update with new asset revaluation data, such as Gross Replacement Cost, Optimised Depreciated Replacement Cost and annual depreciation, as well as unit rates, upon review (next revaluation scheduled for June 2021).

 Annual update of asset data, strategies and financial forecasts.

 Annual update at the end of financial year.

 Three-yearly review in line with LTP time lines.

Table outlines the procedures and timetables adopted to achieve these objectives.

18-28 Bay Venues Ltd Asset Management Plan Page 130 of 143

Table 43: AMP Review and Monitoring Processes

Activity Action Milestones

AMP Development  Development and adoption of strategies by BVL, TCC and Ongoing Committee

 Adoption of Asset Management Plan by TCC 3-yearly in line with LTP process

 Complete review of Asset Management Plan 3-yearly in line with LTP process

 Annual* update and enhancement of Asset Management Annually in line with Annual Plan Plan process

* in years where no LTP is prepared

AMP Review  Annual review of plan content by Asset Manager, including: Annually in line with Annual – consistency with adopted BVL and TCC programmes Plan process and plans – compliance with agreed Asset Management improvement programmes – effectiveness and adequacy of Asset Management Plan processes, systems and data

 External review of technical content, by recognised industry 3-yearly in line with LTP expert. process

 Possible audit of Asset Management Plan by Audit New Timing of audit and activity Zealand area(s) to be audited set by Audit NZ

Asset Management Data Ongoing data collection to established data standards, Ongoing specifications. Verified by quality assurance procedures.

 Undertake quality audits on data integrity and report results. Ongoing

 Review data collection, data flows and entry standards and Ongoing quality assurance processes.

Level of Service Review current levels of service (LoS options vs costs), key In line with LTP processes. performance indicators (KPIs)

 Measure levels of service delivered and reporting process (in Measure levels of service terms of social, economic, environmental and cultural well- delivered and reporting being) in Annual Report. process in Annual Report.

 Adopt changed Levels of Service through LTP or Annual Plan As required.

9.3.1 Compliance with LGA 2002 Schedule 10 Requirements The review of the AMP in consideration of the Local Government Act 2002, Schedule 10 Requirements is detailed in the table below.

Table 44: AMP Compliance with LGA 2002 Schedule 10 Requirements

LGA 2002 Schedule 10 Requirement LGA 2002 References Section Covered

Identify the rationale for delivery of the group of activities LGA 2002 Schedule 10 – 2 (1) (b) Section 2 – Strategic (including the community outcomes to which the group of Environment activities primarily contributes)

18-28 Bay Venues Ltd Asset Management Plan Page 131 of 143 LGA 2002 Schedule 10 Requirement LGA 2002 References Section Covered

Outline any significant negative effects that any activity LGA 2002 Schedule 10 – 2 (1) (c) Section 3 – Business within the group of activities may have on social, economic, Overview environmental or cultural well-being of the local community

Identify the assets or groups of assets required by the group LGA 2002 Schedule 10 – 2 (1) (d) As per below. of activities and identify, in relation to those assets or groups of assets,---

How the local authority will assess and manage the asset LGA 2002 Schedule 10 – 2 (1) (d) (i) (A) Section 5 – Growth and management implications of changes to demand for, or Demand consumption of, relevant services; and Section 7 – Life Cycle Management

How the local authority will assess and manage the asset LGA 2002 Schedule 10 – 2 (1) (d) (i) (B) Section 4 – Levels of management implications of changes to service provision Service levels and standards Section 7 – Life Cycle Management

What additional asset capacity is estimated to be required in LGA 2002 Schedule 10 – 2 (1) (d) (ii) Section 5 – Growth and respect of changes to each of the matters described in Demand subparagraph (i):

How the provision of additional asset capacity will be LGA 2002 Schedule 10 – 2 (1) (d) (iii) Section 7 – Life Cycle undertaken: Management

The estimated costs of the provision of additional asset LGA 2002 Schedule 10 – 2 (1) (d) (iv) Section 8 – Financial capacity identified under subparagraph (ii), and the division Forecast of those costs between each of the matters in respect of which additional capacity is required:

How the costs of the provision of additional asset capacity LGA 2002 Schedule 10 – 2 (1) (d) (v) Section 8 – Financial will be met: Forecast

How the maintenance, renewal, and replacement of assets LGA 2002 Schedule 10 – 2 (1) (d) (vi) Section 7 – Life Cycle will be undertaken: Management

How the costs of maintenance, renewal, and replacement of LGA 2002 Schedule 10 – 2 (1) (d) (vii) Section 8 – Financial assets will be met: Forecast

A statement of the intended levels of service provision for LGA 2002 Schedule 10 – 2 (2) (a) and Section 4 – Levels of the group of activities, including the performance of targets 2 (1) (e) Service and other measures by which actual levels of service Section 0 – Financial provision may meaningfully be assessed: and (i) in detail in Forecast relation to each of the first three (1-3) financial years covered by the plan; and (ii) in outline in relation to each of the subsequent financial years covered by the plan (4-10).

The estimated expenses of achieving and maintaining the LGA 2002 Schedule 10 – 2 (2) (b) and Section 4 – Levels of identified levels of service provision, including the estimated 2 (1) (e) Service expenses associated with maintaining the service capacity and integrity of assets: and (i) in detail in relation to each of the first three (1-3) financial years covered by the plan; and (ii) in outline in relation to each of the subsequent financial years covered by the plan (4-10).

A statement of how the expenses are to be met; and (i) in LGA 2002 Schedule 10 – 2 (2) (c) and Section 8 – Financial detail in relation to each of the first three (1-3) financial years 2 (1) (e) Forecast covered by the plan; and (ii) in outline in relation to each of the subsequent financial years covered by the plan (4-10)..

A statement of the estimated revenue levels, the other LGA 2002 Schedule 10 – 2 (2) (d) and Section 8 – Financial sources of funds, and the rationale for their selection in 2 (1) (e) Forecast terms of section 101 (3). And (i) in detail in relation to each of the first three (1-3) financial years covered by the plan; and (ii) in outline in relation to each of the subsequent financial years covered by the plan (4-10).

9.3.2 Service Delivery Mechanism and Quality Management Effective service delivery is a fundamental requirement for BVL if they are to meet the user needs. Effective services should be:

18-28 Bay Venues Ltd Asset Management Plan Page 132 of 143  Available – at time and space scales that the user needs.

 Dependable – delivered regularly and on time.

 Usable - presented in a user friendly format.

 Useful, responsive and flexible – to respond appropriately to user needs.

 Credible – for the user to confidently apply to decision-making.

 Authentic - entitled to be accepted by stakeholders in the given decision contexts.

 Sustainable – affordable, resourceful and consistent over time.

 Expandable – to be applicable to different kinds of services.

As an organisation BVL needs to actively organise and control service delivery, which includes:

 A structured organisation of in-house resources.

 A functional service delivery model and clear structures with service delivery contractors.

 An appropriate level of Quality Management. Service Delivery Model The risk assessment undertaken as part of Section 6 of this plan identified that there is a key risk to BVL service delivery regarding the potential failure or disruption to key business systems, including through a cyber-attack. To help in managing this risk BVL are in the process of reviewing business systems. An Infrastructure Roadmap has been completed and has identified areas within the current environment that need attention.

18-28 Bay Venues Ltd Asset Management Plan Page 133 of 143 10 Improvement Plan 10.1 Asset Management Improvement Process

10.1.1 Overview TCC has adopted a strategic management approach to improvement planning, continually developing Asset Management Plans, and implementing improvement processes & practices. This Improvement Plan is integral to that approach, quantifying current business practice and measuring progress toward an identified future position. BVL work together with TCC on this Improvement Plan and process. The purpose of the Improvement Plan is to Identify and develop implementation of AMP processes. This includes:

 The cycle of AMP monitoring, review, revision and audit to improve the effectiveness of AMP outputs and compliance with audit criteria, legislative requirements and best appropriate practice.

 The definition of service standards reflecting community outcomes through public consultation. The AMP is used to identify service level options and costs, and the delivery of services is a key objective of asset management planning.

 Identify and prioritise ways to cost-effectively improve the quality of the AMP, and therefore decision making and service delivery. Identify indicative time-scales, priorities, human and financial resources required to achieve Asset Management planning objectives. The development of this AMP is based on existing levels of service, the best available current information and the knowledge of TCC and BVL staff. It is intended that the development of this plan is part of an ongoing process and that the document will be reviewed and updated regularly. This review process involves using improved knowledge of customer expectations (community consultation) and information from Asset Management Systems and databases. This will enable TCC and BVL to optimise decision-making, review outputs, develop strategies, improve risk management and extend the planning horizon. This section describes:

 The specific improvements proposed over the next three years.

 The procedures proposed to be implemented within the organisation for monitoring and review. 10.2 What are typical key improvements areas? A typical business is made up of a series of key organisational processes (refer to Section 9.1) that must be managed if the organisation is to continually improve. These processes can be the key areas that are investigated to form the Improvement Plan. The seven primary Asset Management quality elements are listed below:

Process and Practices Used in the completion of life cycle asset management activities Information Systems Required to support the processes and practices and store and manipulate the data and knowledge as required Data and Knowledge Of the assets and asset performance, their appropriateness, adequateness and reliability Commercial Tactics Used to efficiently carry out the work identified by the processes above Organisational Issues Comprising the structure, roles and responsibilities that exist to support life cycle asset management People Issues Comprising the attitudes, skills and endeavour of staff involved in the Asset Management process Total Asset Management Plans Which form the key outputs from the above inputs and processes These seven primary elements are critical to achieving sustained performance of the organisation at the lowest life cycle cost. Each of the seven components “adds value’ to the raw business processes consistent with regulations, customer demands and shareholder requirements. All activities undertaken by TCC and BVL should contribute to its value in terms of delivery. Each activity will be linked and form a component part of the business.

18-28 Bay Venues Ltd Asset Management Plan Page 134 of 143 10.2.1 Improvements since the last Asset Management Plan The last Asset Management Plan identified a list of improvement tasks. Table 45 shows the high priority tasks and the status of their implementation.

Table 45: Implementation of High Priority Improvements Identified in 2015-2018 AMP Improvement Plan

No. Improvement Task Description: 2015 – 2018 Status Update AMP Section

1 Improve asset management processes by collecting, storing 8 Complete and analysing asset condition data. Asset data to be collected as part of condition surveys as well as during routine maintenance and repairs

2 Prepare Asset Management Policy and Strategy 1 Not started.

TCC have invited Assets & Projects Manager to participate in the TCC project steering group preparing an AMP policy. BVL will likely adopt the TCC Policy once complete

3 Develop condition assessment programme and methodology 8 Complete for all assets

4 Inclusion of all Indoor Recreation sites into AMP N/A Complete

5 Identify critical assets for each facility 6/8 Complete. Assets identified in risk plan

6 Improve data reliability/confidence. Sufficient information 8/9 Complete available to complete valuation and information recorded on TCC’s AM system, but data reliability status is medium

14 Improve asset performance analysis and optimised decision 8 Priority reassessed making (ODM) for renewals by assigning failure information Accela work orders are not used by BVL. Asset to current and historic work orders failure data needs to be assigned to identified assets, not through work order process.

10.2.2 Three-Year Improvements Appendix 4 contains the list of improvement projects/tasks to be undertaken over the next 3 years including levels of resources, funding, dependencies and priorities.

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Appendix 1 – Risk Register

18-28 Bay Venues Ltd Asset Management Plan Page 136 of 143 Bay Venues Enterprise Risk Register SLT Review: 17 April 2018 April 2018

Raw risk assessment, as if controls didn’t exist Current risk assessment, taking account of controls Mitigations if Mitigation # Lead Category Risk owner Risk event Description Leading to… Likelihood Consequence Risk factor Controls currently in place Control owner Likelihood Consequence Risk factor Actions event occurs owner List the List all meaningful controls which Individual who Who is ultimately Single description of risk Potentially multiple Individual who is additional Potentially multiple impacts on reduce the likelihood of the event is responsible responsible for the event (preceded by 'Risk different causes of the 1 to 5 1 to 5 Category responsible for each 1 to 5 1 to 5 Category mitigations Future actions if relevant BVL occurring or the potential for each risk of…' or 'Risk that…') risk event control available once consequence if it does mitigation the event occurs

Governance relationship with TCC BVL unable to access Reduced facility development Insufficient funding for TCC funding required to Reduced operational support SLA Agreement 1 Strategic Board/CEO 1 3 Low CEO 1 3 Low business operations support business Inability to deliver community LoE operations outcomes SoI

Ownership of the Mt Change of Ownership of Hot Pools no longer 2 Strategic Board/CEO Financial 2 4 High Board/CEO 2 3 Moderate Mt Hot Pools with BVL following Iwi settlements Lack of agreed Lack of integration across activities SLT agreed Business Plans approach between ICT reducing opportunities to drive 3 2 Moderate CEO 1 2 Low and other activities. business efficiencies.

Alignment between ICT ICT is not considered to Failure to achieve expected SLT agreed Business Plans 3 Strategic CEO and business be a strategic function business results and financial operations. value from ICT capability Agreed LTP investment Lack of investment in ICT 3 3 High CEO 1 3 Low development

Data inadvertently sent Privacy breaches Information Management polices to the wrong recipients 3 3 High in place CEO 2 3 Moderate

External digital hosting Non-compliance with legislative SLA with Datacom USB encryption has been introduced (non sites not secure requirements. encrypted USBs will then be unable to connect to the network) 3 4 High CEO 1 4 Moderate

Use of non-corporate Privacy breaches Information Management polices filing systems (hard- Inability to access BVL information in place CEO copy, personal drives, as required 4 3 High 2 3 Moderate thumb-drives etc) Staff policies on use of HR Manager Significant loss or information technology 4 Organisation CEO breach of security of BVL data Lack of (or inadequate) Operational inefficiencies Information Management polices Document Management System under retention policies Inappropriate destruction of data in place development for 17/18 Breach of legislation 3 1 Low Confidential document CEO 1 1 Low destruction service

Lack of adherence to Operational inefficiencies Information Management polices retention policies (and Inappropriate destruction of data in place CEO & HR Manager relevant legislation). Breach of legislation Lack of capacity to store Staff policies on use of 3 1 Low 1 1 Low digital or hard copy information technology data HR Manager

Inconsistent capture of Poor information management Training for all new staff on Document Management System under information into Inefficiencies corporate systems. development for 17/18 corporate document and information 5 2 High CEO 2 2 Moderate management systems.

Information held by BVL Breach of legislation including Information management policies Document Management System under BVL does not but not readily Public Records Act & Local and procedures in place. development for 17/18 appropriately manage accessible (or stored in Government Official Information 5 Organisation CEO 5 2 High CEO 2 2 Moderate critical information that the wrong place) Act it holds Inefficient access to information

18-28 Bay Venues Ltd Asset Management Plan Page 137 of 143

Insufficient Poor information management System backups undertaken Development of disaster recovery Plan for infrastructure and inefficiencies System clean ups 17/18 investment in bandwidth, storage Business continuity 4 3 High CEO 1 2 Low space and equipment.

Malicious action Infection of data IT Technology Policy Server Backups directed at BVL Financial (ransomeware) 5 5 Critical CEO 4 5 Critical Virus Protection Insurance policy includes Cyber cover Failure of protection Destruction or corruption of data Anti-virus software kept current Server Backups mechanisms to identify and treat a virus. 5 5 Critical CEO 4 5 Critical Insurance policy includes Cyber cover

Failure by authorised Exposure of sensitive, private or Best practice firewalls in place. Server Backups users to observe ICT confidential data. security and acceptable Insurance policy includes Cyber cover use policies Compromised performance, or Independent support and total failure, of ICT systems. monitoring by Datacom IT Manager in the process of completing a Successful computer report outlining the management and 6 Organisation CEO cyber attack. Significant remedial work required monitoring in place for IT security to regain normal ICT services ICT staff automatically alerted to necessary preventative actions Reputational harm/loss of Shareholder confidence 4 5 Critical CEO 3 5 Critical

Lack of an integrated Inability to return to business as Systems able to be accessed Develop comprehensive business continuity crisis management plan usual in a timely manner remotely plans covering all significant activities. informing business Business impact analysis completed for continuity 3 5 Critical System back ups CEO 1 3 Low highest priority teams development. Disaster Recovery Plan for ICT to be Loss of service delivery while Independent Datacom support developed continuity issues addressed Lack of documented Crisis Management Plan business continuity plans across the 3 5 Critical CEO 2 3 Moderate organisation Financial cost of recovery process

Lack of documented disaster recovery plan Inefficiencies in recovery 3 4 High CEO 2 3 Moderate BVL is unable to quickly and procedures. operation and efficiently recover business as usual Lack of integrated Emergency Management plans for 7 Service delivery CEO operations following a emergency each site in place disaster or business management goals/ continuity interruption drivers within business 3 4 High CEO 2 3 Moderate as usual practices.

Lack of resourcing, training and testing of business continuity and 3 4 High CEO 1 3 Low recovery plans.

Lack of documented coordinated crisis management and business disruption 3 4 High CEO 1 3 Low structures and arrangements.

Lack of documented Knowledge of current skill Utilisation of Completion of Future Facilities Plan to workforce plan Pressure on colleagues from requirements and recruiting for consultants and identify skills/capability required in future detailing workload spread those skills contractors Skills and qualification stocktake leading to a skills/capabilities 4 4 Critical HR Manager 4 3 High future workforce plan to be developed 17/18 required Service delivery compromised

Lack of internal capability for key

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Remuneration not competency sets Use of Strategic Pay as a basis for sufficient to attract Remuneration Strategy appropriate candidates. Over reliance on contractors or 4 4 Critical HR Manager 4 3 High consultants

BVL is unable to attract Organisational culture Lack of workforce stability and Annual staff Engagement Survey and /or retain suitably (employment capability conducted and improvements 8 Organisation HR Manager qualified and experience) does not identified and implemented experienced staff attract or retain 3 3 High HR Manager 2 3 Moderate members. appropriate candidates/staff.

BVL staff highly sought Increased Remuneration for Establish succession plan for critical roles after in the market 5 3 Critical targeted roles HR Manager 3 3 High 17/18

Hiring Manager fails to Recruitment training in place Re-recruit Hiring Manager identify the most suitable candidate. 4 4 Critical HR Manager 2 3 Moderate

Lack of understanding Fatality, injury or illness All reported incidents recorded, On going development of an Integrated of potential health and experienced by workers, root causes identified, corrective Occupational Health & Safety Management safety risks contractors, volunteers or actions completed, and learnings System members of public. 4 5 Critical documented. HR Manager 2 5 High

Possible breach and/or conviction under the HSWA

Failure to address Staff Inductions Loss of confidence by the known health and Staff training Shareholder/public safety risks. H&S Committee 4 5 Critical Annual reviews of Risk Registers HR Manager 2 5 High Possible implications under the VAULT system HSWA for TCC (due diligence of the PCBU) Lack of management of Contractor Induction System in Further improvements to the focus on H&S health & safety aspects place matters in contracting processes. of PCBUs 4 5 Critical HR Manager 2 5 High

Unsafe assets, plant or SoPs developed equipment Staff training and inductions JSA's 4 5 Critical Tag and testing in place HR Manager 2 5 High Permits to work

Worker or contractor actions or inactions Fatigue Management Fatigue Management Policy in Report on hours worked under development contribute to a fatality, around high risk staff place in Payroll System 9 Health & Safety CEO 4 5 Critical HR Manager 2 5 High significant injury or (workloads) illness of a worker , contractor or customer Lack of H&S resource New H&S system in place reducing Completion of a review of Contractor internally to ensure data entry by H&S advisor Management to be undertaken using compliance with HSWA 2 5 High H&S reps across BVL HR Manager 1 5 Moderate external support Support agreement with TCC in place Lack of documentated Responsibility of Managers to System and process to capture and manage training records to ensure H&S procedures complied all training documentation support H&S training with including H&S inductions including H&S 4 2 High HR Manager 2 2 Moderate inductions onto Improved H&S inductions sites/BVL.

On going monitoring of Responsibility of Managers to System and process to capture and manage staff competentices in ensure staff trained and all training documentation as well as process SoPs competent in SoPs for monitoring and assessing competencies 5 5 Critical HR Manager 2 5 High in SoPs including ensuring all SoPs are current and relevant

Poorly trained or Dedicated H&S resource inexperienced Staff Training and inductions Implement KPIs for Lead and Lag indicators staff/contractors or lack Mentoring shifts of appropriate H&S Committees & reps 5 5 Critical HR Manager 2 5 High supervision. Poor choices made by individuals

18-28 Bay Venues Ltd Asset Management Plan Page 139 of 143 Payroll Fraud including Financial loss Independent review of payroll that underatken by before payments made staff, by Managers and Negative PR Separation of duties with team by Payroll that creates IEAs/variations 5 3 Critical Strict procedures about adequate CFO 2 2 Moderate supporting documentation Audit report signed off

Theft of assets Financial loss Two independent signatories including cash. needed for all payment batches Till/cash up procedures in place 5 3 Critical with daily reviews by Finance CFO 3 2 Moderate CCTV monitoring

Fraudulent use of Financial loss Data use reports monitored by ICT information and and reported to SLT Fraudulent or corrupt communication 5 3 Critical CFO 2 2 Moderate behaviour by staff, 10 Finance CFO technology. contractors or others acting on BVL's behalf. Fraudulent use of BVL Financial loss IEA agreements information or data 3 3 High CFO 2 2 Moderate HR Staff policies

Fraudulent Financial loss Financial Delegation process procurement EPO system Further finance checks to be developed as Negative PR New creditor requests to be ongoing improvement Staff conflicts of substantiated and signed off by interest leading to Qualified Audit Opinion SLT Manager failure to follow Companies Office/Web check on procurement policy Poor procurement choices made all new creditor requests resulting in higher costs Segregation of duties within 5 3 Critical Finance team CFO 3 2 Moderate Independent review of creditors payments before processing Audit NZ Audit Adopted Procurement Policy

Severe weather event Business continuity including Flooding, 11 Service Delivery CEO Natural Disaster Event strong winds and 2 5 High CEO 2 4 High Tornados

Earthquake Business continuity 12 Service Delivery CEO Natural Disaster Event 2 5 High CEO 2 4 High Tsunami Business continuity 13 Service Delivery CEO Natural Disaster Event 1 5 Moderate CEO 1 4 Moderate Eruption of White Business continuity 14 Service Delivery CEO Natural Disaster Event Island 1 5 Moderate CEO 1 4 Low Failure or breakage of Business continuity for Baywave Disaster Recovery plan for ICT to be Failure of the Tauranga 15 Service Delivery CEO the Metro Link and Baypark 3 4 High CEO 3 3 High developed 17/18 Metro network

BVL unable to attract Failure to met Budget Industry networking to identify suitable events to BVL Expectations opportunities Commercial 3 4 High 2 3 Moderate Manager BVL Events fail to meet facilities 16 Finance Commercial Manager budget expectations Major failure of a Loss of confidence Commercial significant Event Financial Loss 2 4 High 2 2 Moderate Manager Economic factors Cost to business for capital Close relationship with TCC increase the OCR by the program Treasury to assist in management 3 4 High CFO 3 4 High reserve bank Inability to deliver capital program of interest rate risk Interest rate increases 17 Finance CFO quicker or higher than anticipated by TCC Down grade in TCCs Cost to business for capital credit rating leading to program 2 1 Low CFO 2 1 Low rate increases to BVL Inability to deliver capital program

Major pandemic Business continuity Emergency mgmt plans 18 Health & Safety CEO Pandemic impacting the region 2 5 High CFO 2 5 High Flu immunisation

Negative PR that Loss of confidence by the Governance relationship with TCC contributes to loss of Shareholder Asset Management Plans 19 Reputation CEO Brand Damage confidence in the Board 3 4 High CEO 2 4 High

18-28 Bay Venues Ltd Asset Management Plan Page 140 of 143 Loss of key staff with or Business Continuity T&D Plans in place for all Re-recruit Hiring Manager without notice Loss of knowledge permanent staff Financial Loss Staff Development Group Workload spread to other staff established 20 Organisation HR Manager Loss of Key Personnel while recruitment occurs 3 3 High Management Development Group HR Manager 3 2 Moderate established Career Paths being identified for LG & Reception roles Political influences Changes to business structures Governance relationship with TCC CCO structure 21 Strategic Board/CEO regarding the CCO (assumes service delivery will 1 2 Low Board/CEO 1 2 Low concludes continue) Failure of: Bore Structures at the Hot 3 5 Critical 1 5 Moderate Pools Failure of: Bore structures at other 3 5 Critical 1 5 Moderate Aquatic Facilities Failure of: All piping infrastructure for supply or return of 4 4 Critical 3 3 High water Failure of: Baypark Generator Business continuity 3 3 High Asset Management staff in place 1 3 Low

Failure of: Baywave Asset Management Plans generator Financial Loss 3 3 High 1 3 Low Asset Management System Failure of: Smoke and Loss of confidence by the Asset Manager heat detection systems Shareholder 3 4 High Routine Maintenance undertaken 2 2 Moderate (renewals) & 22 Service Delivery V&P Manager Key Asset failure Failure of: Variable Preferred contractors working on Venues Managers speed drives at Negative PR 3 3 High the systems 1 2 Low (monitoring and Baywave, Hot Pools and maintenance) Failure of: Heating, Insurance ventilation and A/C in 3 3 High 1 2 Low particular at ASB Arena Consultant/Expert reports as Failure of: ASB Arena required lighting in particular 3 4 High 1 2 Low Three court area Failure of: Stadium lighting 2 3 Moderate 1 2 Low

Failure of :Pool tanks at the Hot Pools, Baywave 2 5 High 1 3 Low or Greerton Facility structures seismic assessment rated at less than 33% 3 4 High 2 3 Moderate NBS

Failing to monitor Business continuity Asset Manager monitors all critical consent Financial Loss Resource Consent conditions Asset Manager Breach of Resource conditions adequately Loss of confidence from the New software system sends & 23 Compliance V & P Manager 5 3 Critical 2 2 Moderate consent conditions Shareholder notifications to Managers & Asset Commercial Negative PR & Project Manager Manager Litigation/prosecution Failure to monitor and Financial Debtors captured in the Financial Insolvency of a major collect on large debtors system 24 Finance CFO 3 4 Critical CFO 2 3 Moderate debtor Active Debt management policy

Facility partially or Service Delivery Major facilities linked to NZFS completely damaged by H&S risk Fire evacuation procedures fire Fire extinguishers Staff training BWOF Loss of facility due to Evacuation Drills conducted 25 Service Delivery V & P Manager 3 5 Critical Venue Managers 1 5 Moderate fire Insurance Fire Service contract includes testing of alarms/sensors/ sprinklers

BVL fail to manage Breach of legislation HR Staff qualified and remain Specific Manager Induction Training to be conditions contained in Employee claims conversant with current implemented Failure to implement such documents as legislation and monitor Staff 26 Compliance HR Manager Visas and Individual 3 3 High Training in ER for Managers HR Manager 2 3 Moderate requirements to meet Employment legislation Agreements

18-28 Bay Venues Ltd Asset Management Plan Page 141 of 143 Inappropriate people Lack of safety of vulnerable Police Vetting undertaken for key Consider Police Vetting for Managers with into key or sensitive customers or sensitive roles high Procurement delegations Failure to police check roles Fraud 27 Organisation HR Manager recruits into key or Negative PR 4 5 Critical HR Manager 1 5 Moderate sensitive positions

BVL records a Loss of confidence by the Robust budgeting process significant negative Shareholder in the Board of BVL Robust financial systems for data variance to budget Long term financial sustainability collection, monitoring and expectations threat decision making Risk to CCO longevity Board reporting Negative PR No surprises relationship between Significant failure to CEO and the Board 28 Finance CEO meet budget 2 4 High Regular reporting to TCC CEO 1 2 Low expectations Governance relationship with TCC No surprise culture with TCC

Assumptions for major Financial pressures Robust Business case assessments capital investment fail inability to fund depreciation and SLT review Capital investment fails to meet expectations debt servicing Board review 29 Finance CEO to deliver on Business 2 4 High CEO 1 2 Low Loss of confidence in the Board by case justifications the Shareholder

Failure of or disrupted Service delivery Server backups Consideration of datacentre for Server 17/18 use of LINKs PoS Manual recording systems in place Cloud based applications in the future systems, Ozone Virus protection Failure or major Financial system, Inability to capture or access key Cloud based products 30 Service Delivery CEO disruption to key Ungerboeck Events information 4 4 Critical Firewalls CEO 2 4 High business systems system, Outlook or the SLA agreement with Datacom in server itself place Rountine Server Maintenance Redundancy/resiliance built into Multi victim event as a Serious illness and possibly death H&S systems in place with SoPs result of poor food in multiple victims Trained food handling staff hygiene/food Legislative breach of relevant Food Compliance with Food Act preparation Acts and/or HSWA leading to 31 Health & Safety CEO Food poisoning prosecution 4 5 Critical HR Manager 2 5 High Negative PR Brand damage Financial

Multi victim event as a Serious illness and possibly death H&S systems in place with SoPs result of failure to in multiple victims Trained food handling staff correctly identify and Legislative breach of HSWA Compliance with Food Act Gastroenteritis 32 Health & Safety CEO manage bio hazards leading to prosecution 4 5 Critical HR Manager 2 5 High outbreak from a contaminated Negative PR person Brand damage Financial Multi victim event as a Serious illness and possibly death H&S systems in place with SoPs result of failure to in multiple victims Trained staff correctly identify and Legistaltive breach of HSWA Event Evacuation plans Commerical 33 Health & Safety CEO Crowd Panic/Stampede manage hazards from leading to prosection 4 5 Critical Pre event Risk Assessment Plans 2 5 High crowd Negative PR Crowd Management Plans Manager movement/flow/egress Brand damage Financial Terrorist Serious illness and possibly death H&S systems in place with SoPs Activity/threats that in multiple victims Trained staff could lead to single or Damage to a facility Emergency Evacuation Plans 34 Health & Safety CEO Terrorism multiple fatality or Financial 1 5 Moderate CEO / HR Manager 1 5 Moderate injury as well as asset Business Continuity damage Brand damage if poorly handled Financial Non renewal of key Business continuity issues Compliance with all exisitng Identify any resource consents that may be resource consents consents jeopodised and discuss with stakeholders to Financial impacts Proactive management of ascertain level of risk Resource consent 35 Compliance V&P Manager 3 2 Moderate timelines around consent Asset Manager 1 2 Low renewal Negative media applications New software system sends automated messages for all Failure to ensure that Facility Damage Development of some form of Checklist BVL facilities and H&S risks capabilities are Financial Loss Major new events to Commercial 36 Strategic Commercial Manager adequate to effectively Negative PR 3 3 High Events plans/budgets in place 2 2 Moderate BVL facilities and safley deliver on Brand Damage Manager major new events

18-28 Bay Venues Ltd Asset Management Plan Page 142 of 143 Failure to ensure that Fatality or severe injury to a H&S Plans in place prior to events BVL venues are able to customer or worker Risk assessment completed prior adequately protect HSWA Prosecution to evets customers and staff . In Facility damage PCBU management Commercial 37 Health & Safety Commercial Manager Thrill Events particular addressing Negative PR 3 3 High Asset Management Plans 2 3 Moderate flying debris and Brand damage Proactive maintenance Manager adequacy of safety mechanisms eg fencing

Leakage or splii from Soil contamination of playing Talk to TCC to understand the risk associated neighbouring TCC fields with a leak from the Watewater treatment Wastewater treatment Other surface contamination plants develop a plan around any identified Commercial 38 Health & Safety Commercial Manager Contamination plants within the Baypark site envelop 1 2 Low Relationship with TCC 1 2 Low risk/concerns for Baypark Staff to manage Manager

Threats that could lead Serious illness and possibly death Staff Inductions to single or multiple in multiple victims Staff training fatality or injury as well Damage to a facility SoPs as asset damage Evacuation Plans 39 Health & Safety CEO Aggressive Customers Business Continuity 3 5 Critical H R Manager 3 2 Moderate Emergency Management Brand damage if poorly handled Procedures

Presence of asbestos in Serious Illness Risk assessment Asset & Project 40 Health & Safety CEO Asbestos 2 4 Moderate 1 2 Low BVL facilities Business Continuity Asset management plans Manager

Not meeting budget targets. Inconsistencies regarding Monitor and implement legislative relativities within the Government policy on changes. Minimum Wage remuneration structure. 41 Finance CFO minimum wage causing 3 4 High Monitor like for like businesses to HR Manager 3 3 Moderate Legislation Additional costs for business units. for increase in costs identify any potential efficiencies Potential for a need to pass on or process changes. extra costs to customers which has a negative impact.

TCC Strategies that Influence TCC strategy through 42 Strategic CEO Shareholder Strategies impact on their Letter 2 2 Moderate CCO workshop CEO 1 2 Low of Expectations to BVL Partnership approach.

JV partners withdraw involvement in lead up Major Event delivery is to events. compromised. JV partners experience Financial impact to BVL. Investigate potential JV partners Increasing number of financial difficulties. Brand and reputation of BVL is thoroughly. commercial Commercial 43 Strategic CEO JV partners unable to tarnished/ 3 4 High Contracts in place. 2 3 Moderate arrangements with JV Manager deliver on commercial Health & Safety issues based on JV BVL manage the financial partners. obligations. partner actions. arrangements for the partnership. JV partners tarnish BVL Credibility of BVL to deliver events reputation and brand and commercial arrangements. through actions.

Loss of knowledge and skills on company health and safety due to Staff Induction. Health & Safety Health & Safety risk due staff turnover. Staff Training processes and 44 Health & Safety HR Manager to the high staff Culture of health & safety priority 5 4 High Toolbox Meetings HR Manager 3 2 Moderate understanding suffer turnover. within organisation is Board H&S Assembly Committee due to staff turnover. compromised due to staff Staff H&S Committee Meetings turnover. Multi victim event as a Serious illness and possibly death H&S systems in place with SoPs result of failure to in multiple victims Robust water treatment (Chlorine Water Born Parasitic correctly identify and Legislative breach of HSWA and U.V.) and water testing which 45 Health & Safety HR Manager Contamination 4 5 Critical HR Manager 2 5 High manage bio hazards leading to prosecution is independently audited. Outbreak from a contamination Negative PR event/person Brand damage Financial

18-28 Bay Venues Ltd Asset Management Plan Page 143 of 143 Lifecycle Management The table below shows the condition assessment model (NAMS IIMM 2011) used as basis for assessing the asset condition.

Table 46: Typical Condition Rating Model

Grade Condition Description of Condition

1 Very Good Sound physical condition. Asset likely to perform adequately without major work for 25 years or more.

2 Good Acceptable physical condition; minimal short-term failure risk but potential for deterioration in long-term (10 years plus). Only minor work required (if any).

3 Fair Significant deterioration evident; failure unlikely within the next 2 years but further deterioration likely and major replacement likely within next 10 years. Minor components or isolated sections of the asset need replacement or repair now but asset still functions safely at adequate level of service. Work required but asset is still serviceable.

4 Poor Failure likely in short-term. Likely need to replace most or all of assets within 2 years. No immediate risk to health or safety but works required within 2 years ensuring asset remains safe. Substantial work required in short-term, asset barely serviceable.

5 Very Poor Failed or failure imminent. Immediate need to replace most or all of asset. Health and safety hazards exist which present a possible risk to public safety, or asset cannot be serviced/operated without risk to personnel. Major work or replacement required urgently.

The table below shows the confidence framework (NAMS IIMM 2011) used to determine the confidence in the infrastructure asset data.

Table 47: Infrastructure Asset Data - Confidence Grades

Confidence Grade General Meaning

A Highly Reliable Data based on sound records, procedure, investigations and analysis, documented properly and recognised as the best method of assessment. Dataset is complete and estimated to be accurate ±2%.

B Reliable Data based on sound records, procedures, investigations and analysis, documented properly but has minor shortcomings, for example the data is old, some documentation is missing, and reliance is placed on unconfirmed reports or some extrapolation. Dataset is complete and estimated to be accurate ±10%.

C Uncertain Data based on sound records, procedures, investigations and analysis which is incomplete or unsupported, or extrapolated from a limited sample for which grade A or B is available. Dataset is substantially complete but up to 50% is extrapolated data and accuracy is estimated ±25%.

D Very Uncertain Data based on unconfirmed verbal reports and/or cursory inspection and analysis. Dataset may not be fully completed and mist data is estimated or extrapolated. Accuracy ±40%.

E Unknown None or very little data held.

18-28 Bay Venues Ltd Asset Management Plan Page 144 of 143 Appendix 3 – Financial Forecast

Summary Proposed Capital Expenditure 2018 - 28 $ NEW CAPITAL SUMMARY 2018-28

25,659,000

8,998,000

5,678,700

2,394,700 1,550,000 657,174 80,000 114,000 105,000 70,000

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

18-28 Bay Venues Ltd Asset Management Plan Page 145 of 143 New Capital Summary by Venue / Business Unit 2018 - 2028

18-28 Bay Venues Ltd Asset Management Plan Page 146 of 143 Forecast Renewals Expenditure 2018 - 2028 $ RENEWALS SUMMARY 2018-28

6,698,627

4,225,507 3,853,577

3,066,852 2,814,055 2,493,843 2,338,704 2,249,450

1,659,375

1,217,459

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

18-28 Bay Venues Ltd Asset Management Plan Page 147 of 143 Renewals Summary by Venue / Business Unit 2018 - 2028

RENEWALS SUMMARY - LTP 2018 - 2028 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 Total 50 Miro Street - House 6,956 1,762 - 8,870 3,453 223 13,717 294 17,344 951 53,569 Arataki Community Centre 69,158 32,062 54,848 2,758 55,176 - 141 21,663 9,748 181,816 427,369 ASB Arena 720,461 126,916 246,341 254,135 179,623 37,047 356,023 579,739 214,679 784,700 3,499,664 ASB Baypark Stadium 920,988 522,003 208,492 369,021 460,773 50,141 105,088 239,798 199,778 626,427 2,822,575 Baywave Aquatic Centre 451,576 674,407 247,507 784,623 293,795 233,172 761,502 304,855 448,081 1,755,724 5,955,241 Bethlehem Hall 7,869 7,693 15,414 2,325 19,788 6,224 22,794 70,825 152,932 Adams Centre * 247,676 140,000 300,000 70,000 70,000 270,000 70,000 624,184 79,395 425,168 2,296,424 Greerton Aquatic Centre 194,013 191,571 650,706 211,688 243,810 286,904 103,449 227,373 194,071 310,701 2,614,285 Greerton Hall 16,747 7,622 3,438 4,815 5,463 5,931 1,217 45,827 1,762 143,983 236,806 Matua Hall 4,639 - 18,791 9,748 294 3,057 7,634 56,647 100,809 IT Renewals 112,700 78,400 92,500 117,700 78,400 92,500 117,700 78,400 92,500 117,700 978,500 Memorial Hall (attached to QEYC) 223,165 32,591 67,266 12,141 104,675 1,644 16,677 41,786 1,351 187,732 689,028 Memorial Pool 78,643 1,007,383 12,889 114,008 48,522 59,772 40,489 13,946 110,062 142,473 1,628,187 Queen Elizabeth Youth Centre 173,183 78,052 139,489 51,216 262,076 42,456 150,908 24,933 73,061 769,718 1,765,092 Mount Hot Pools 101,390 776,170 60,841 109,731 190,355 51,528 305,879 68,099 115,184 415,903 2,195,079 Mount Sports Centre 46,017 294 1,644 2,055 22,915 4,580 1,490 14,105 - 117,338 210,437 Otumoetai Pool 275,612 183,897 111,709 827,483 117,257 24,328 94,895 274,035 15,872 119,128 2,044,215 Papamoa Sport & Rec Centre 68,151 120,038 24,533 29,583 70,876 21,480 33,729 83,058 29,231 154,794 635,473 Tauriko Hall 8,302 - 6,665 2,437 29,149 32,487 1,292 58,139 138,471 Vehicles removed 29.03.18 ------Welcome Bay Hall 14,091 1,574 18,132 2,936 4,733 4,803 31,661 63,743 141,674 Detailed Seismic Assessment Remedial work - 120,000 140,000 ------260,000 Asbestos Removal Work ------Baywave Structural Strengthening ------Renewals Total 3,741,337 4,102,434 2,421,207 2,977,526 2,270,586 1,181,999 2,183,932 2,732,092 1,611,044 6,503,609 29,725,767 Design and fees 3% 112,240 123,073 72,636 89,326 68,118 35,460 65,518 81,963 48,331 195,017 891,682 RENEWALS TOTAL 3,853,577 4,225,507 2,493,843 3,066,852 2,338,704 1,217,459 2,249,450 2,814,055 1,659,375 6,698,627 30,617,448

18-28 Bay Venues Ltd Asset Management Plan Page 148 of 143 Appendix 4 – Improvement Plan Improvement Type Resource Expenditure

Improvement Task Descriptor – details the main No. component AMP Section (Position)Resources Costs $ Dependancies IT, Funding) (e.g. Priority Schedule Year Process and Practices Information Systems Data and Knowledge Commercial Tactics Organisational Issues People Issues Total Asset Management Plans Internal External Operational Capital

Bay Venues Venue 1 Identify critical assets for each facility 6/8 x Asset x Internal x High 2018 Managers resource/TCC All key staff understand their role in AM and aim towards business process improvement. Short Bay Venues Venue 2 10 x x x Internal x Medium 2018 comings and mitigation measures identified in the Asset resource Managers risk management workshop.

Link actions identified in the Risk Management Plan Bay Venues 3 to actions identified in the Asset Management 6 x x x Internal x Medium 2018 Asset resource Improvement Plan and review quaterly

Projects for the next three years are partially scoped. Business Cases for major projects for 3-5 year Asset 4 8 x x Internal x TCC Low 2018 ahead should be developed and 10 years ahead Resource/SLT conceptually identified. Prepare Developing LoS and meaningful 5 2/4 x x x SLT x Internal x TCC Low 2018 performance measures and target template. Bay Venues Develop condition assessment programme and 6 8 x x Asset x Internal x High 2019 methodology for all assets resource/TCC Improve data reliability/confidence. Project steering Sufficient information available to complete valuation 7 8/9 x x x group, project x Internal x TCC High 2019 and information recorded on TCC’s team AM System, but data reliability status is medium.

18-28 Bay Venues Ltd Asset Management Plan Page 149 of 143

Improvement Type Resource Expenditure

Improvement Task Descriptor – details the main No. component AMP Section (Position)Resources Costs $ Dependancies IT, Funding) (e.g. Priority Schedule Year Process and Practices Information Systems Data and Knowledge Commercial Tactics Organisational Issues People Issues Total Asset Management Plans Internal External Operational Capital

Bay Venues 8 Prepare Asset Management Policy and Strategy 1 x Asset x Internal x TCC Medium 2019 resource/TCC Improve full documented recording of performance Asset 9 4 x x x x Internal x Medium 2019 for KPI and LoS. Resource/SLT Development of Bay Venues procedures including Bay Venues 10 8 x x x Internal x Medium 2019 handover from Project to Operations Asset resource Develop Contract Management Procedures Bay Venues 11 Review roles and responsibilities within contract 10 x Procurement x Internal x SLT Medium 2019 management. resource Develop Contract Management Procedures Bay Venues 12 Review roles and responsibilities within contract 10 x Procurement x Internal x SLT Medium 2019 management. resource SLT, project Maintain Asset Management Plan and implement Bay Venues team and 13 1 x x Internal x Medium 2020 improvements identified in Improvement Plan. Asset resource venue managers Align three-yearly asset valuation with the asset Bay Venues 14 8 x x x Internal x TCC Medium 2020 grouping used in the Asset Management Plan. Asset resource Prepare Bay Venues Growth Strategy based on 15 5 x x x x SLT x Internal x TCC Low 2020 supply and demand modelling Include programme works based on a long term Bay Venues Venue 16 sustainable focus including life cycle costs, whole of 7/8/9 x Internal x Low 2020 Asset resource Managers life costing and ODM Develop Career development Draft 17 10 x SLT x Internal x Low 2020 policy/programme Demand forecasts based on population prediction and historical trends. A range of demand scenarios Bay Venues 18 5 x x x x x x Internal x Low 2020 (change in democratic) need to be developed - Asset resource supply and demand modelling

18-28 Bay Venues Ltd Asset Management Plan Page 150 of 143