Agenda of Arts, Culture and Heritage Committee

PALMERSTON NORTH CITY COUNCIL

Extraordinary Arts, Culture and Heritage Committee MEETING

9 September 2019

MEETING NOTICE

Pursuant to Clause 21 of Schedule 7 of the Local Government Act 2002, I hereby requisition an extraordinary meeting of the Council to be held at 9.00am on Monday, 9 September 2019 in the Council Chamber, first floor, Civic Administration Building, 32 The Square, Palmerston North, to consider the business stated below.

CHAIRPERSON

Order of Business

NOTE: The extraordinary meeting of the Arts, Culture and Heritage Committee coincides with the ordinary meeting of the Economic Development Committee meeting. The Committees will conduct business in the following order:

- Economic Development Committee

- Arts, Culture and Heritage Committee

1. Apologies

2. Notification of Additional Items

Pursuant to Sections 46A(7) and 46A(7A) of the Local Government Official Information and Meetings Act 1987, to receive the Chairperson’s explanation that specified item(s), which do not appear on the Agenda of this meeting and/or the meeting to be held with the public excluded, will be discussed.

Any additions in accordance with Section 46A(7) must be approved by resolution with an explanation as to why they cannot be delayed until a future meeting.

Any additions in accordance with Section 46A(7A) may be received or referred to a subsequent meeting for further discussion. No resolution, decision or recommendation can be made in respect of a minor item.

3. Declarations of Interest (if any)

Members are reminded of their duty to give a general notice of any interest of items to be considered on this agenda and the need to declare these interests.

4. Public Comment

To receive comments from members of the public on matters specified on this Agenda or, if time permits, on other Committee matters.

(NOTE: If the Committee wishes to consider or discuss any issue raised that is not specified on the Agenda, other than to receive the comment made or refer it to the Chief Executive, then a resolution will need to be made in accordance with clause 2 above.)

5. Presentation - SYLO Group Page 7

6. Confirmation of Minutes Page 9

“That the minutes of the Arts, Culture and Heritage Committee meeting of 17 June 2019 Part I Public be confirmed as a true and correct record.”

7. Approval of Consultation Material for the Arts and Culture s17A Review Page 17

Memorandum, presented by Andrew Boyle, Head of Community Planning.

8. Potential Collaborative Opportunities with External Funding Providers to Increase the Level of Funding Available to the Arts Sector Page 33

Memorandum, presented by Joann Ransom, Community Development Manager.

9. Final Statement of Intents for Council CCOs: Caccia Birch, Globe Theatre, Regent Theatre and Te Manawa. Page 41

Memorandum, presented by Joann Ransom, Community Development Manager.

10. Committee Work Schedule Page 147

11. Exclusion of Public

To be moved:

“That the public be excluded from the following parts of the proceedings of this meeting listed in the table below.

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under Section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Ground(s) under Section 48(1) for passing this resolution

This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by Section 6 or Section 7 of that Act which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public as stated in the above table.

Also that the persons listed below be permitted to remain after the public has been excluded for the reasons stated.

Chief Executive (Heather Shotter), Chief Financial Officer (Grant Elliott), Chief Infrastructure Officer (Tom Williams), General Manager – Strategy and Planning (Sheryl Bryant), General Manager - Community (Debbie Duncan), Chief Customer and Operating Officer (Chris Dyhrberg), General Manager - Marketing and Communications (Sacha Haskell), Sandra King (Executive Officer) because of their knowledge and ability to provide the meeting with advice on matters both from an organisation-wide context (being members of the Council’s Executive Leadership Team) and also from their specific role within the Council.

Legal Counsel (John Annabell), because of his knowledge and ability to provide the meeting with legal and procedural advice.

Democracy Administrators (Carly Chang, Courtney Kibby, Natalya Kushnirenko, and Penny Odell), because of their knowledge and ability to provide the meeting with procedural advice and record the proceedings of the meeting.

[Add Council Officers], because of their knowledge and ability to assist the meeting in speaking to their report and answering questions, noting that such officer will be present at the meeting only for the item that relate to their respective report.

[Add Third Parties], because of their knowledge and ability to assist the meeting in speaking to their report/s [or other matters as specified] and answering questions, noting that such person/s will be present at the meeting only for the items that relate to their respective report/s [or matters as specified].

Palmerston North City Council

Minutes of the Arts, Culture and Heritage Committee Meeting Part I Public, held in the Council Chamber, First Floor, Civic Administration Building, 32 The Square, Palmerston North on 17 June 2019, commencing at 9.00am

Members

Present:

Councillor Rachel Bowen (in the Chair) and Councillors Brent Barrett, Susan Baty, Adrian Broad, Gabrielle Bundy-Cooke, Jim Jefferies, Karen Naylor, Bruno Petrenas and Tangi Utikere.

Non Members:

Councillors Lew Findlay QSM, Leonie Hapeta, Lorna Johnson and Duncan McCann.

Apologies:

The Mayor (Grant Smith) and Councillors Leonie Hapeta (early departure) and Aleisha Rutherford.

Councillor Vaughan Dennison was present when the meeting resumed at 11.10am. He was not present for clause 16.

Councillor Leonie Hapeta was not present when the meeting resumed at 1.04pm. She was not present for clauses 21-25 inclusive.

16-19

Apologies

Moved Rachel Bowen, seconded Tangi Utikere.

The COMMITTEE RESOLVED

1. That the Committee receive the apologies.

Clause 16-19 above was carried 13 votes to 0, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas and Tangi Utikere.

The meeting adjourned at 9.02am

The meeting resumed at 11.10am

When the meeting resumed Councillor Vaughan Dennison was present

17-19

Confirmation of Minutes

Moved Rachel Bowen, seconded Jim Jefferies.

The COMMITTEE RESOLVED

1. That the minutes of the Arts, Culture and Heritage Committee meeting of 15 April 2019 Part I Public be confirmed as a true and correct record.

Clause 17-19 above was carried 14 votes to 0, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas and Tangi Utikere.

18-19

Maintenance and Renewal Plans and Budgets for Cultural Facilities

Memorandum, dated 16 May 2019 presented by the Property Manager, Bryce Hosking.

Moved Rachel Bowen, seconded Bruno Petrenas.

The COMMITTEE RESOLVED

1. That the Arts, Culture and Heritage Committee receive the report titled ‘Maintenance and Renewal Plans and Budgets for Cultural Facilities’ dated 16 May 2019.

Clause 18-19 above was carried 14 votes to 0, the voting being as follows:

For:

19-19	Review of Asset Renewal Process for the Regent Theatre Trust Memorandum, dated 16 May 2019 presented by the Property Manager, Bryce Hosking. Elected members confirmed that the sound system in the Regent Theatre was a Tenant fit-out item and a non-Council-owned, non-fixed asset. After further discussion it was agreed that the item be left to lie on the table until the Finance and Performance Committee meeting in August 2019.
	Moved Rachel Bowen, seconded Bruno Petrenas. The COMMITTEE RESOLVED 1. That the Arts, Culture and Heritage Committee receive the report titled ‘Review of Asset Renewal Process for the Regent Theatre Trust’ dated 16 May 2019. 2. That the Arts Culture and Heritage Committee confirm that the sound system in the Regent Theatre is a Tenant fit-out item and a non-Council-owned, non-fixed asset.
	Clauses 19.1 and 19.2 above were carried 14 votes to 0, the voting being as follows: For: Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas and Tangi Utikere.
	Moved Karen Naylor, seconded Tangi Utikere. 3. That the item be left to lie on the table until the Finance and Performance Committee meeting in August 2019.
	Clause 19.3 above was carried 13 votes to 1, the voting being as follows: For: Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas and Tangi Utikere. Against: Councillor Leonie Hapeta.

20-19

Military Heritage Update 2018/19

Memorandum, dated 31 May 2019 presented by the City Planning Manager, David Murphy.

Moved Lorna Johnson, seconded Rachel Bowen.

The COMMITTEE RESOLVED

1. That the memorandum titled ‘Military Heritage Update 2018/19’ dated 30 May 2019 is received.

Clause 20-19 above was carried 14 votes to 0, the voting being as follows:

For:

The meeting adjourned at 11.56am

The meeting resumed at 1.04pm

When the meeting resumed Councillor Leonie Hapeta was not present

21-19

Presentation - New Zealand National Kid's Lit Quiz Final

Alan Dingley and representatives of the PNINS Kids Lit Quiz team made a presentation to the Committee regarding their path to the National and World Kid’s Lit Quiz Final.

The team was raising money to enable the team of four students and two teachers to attend the final in Singapore. First prize for winning the Nationals was $6,000 towards flights, Rotary had donated $3,000, and a raffle was being held to raise the remaining funds required. Alan thanked Council for their contribution to the raffle prize.

The team advised they read paper books rather than onscreen for the most part, and that they prepare for competition by reading, research and online quizzes. Their strongest subject area was the fantasy genre.

The team were looking forward to representing Palmerston North on the world stage and hoped there would be a livestream of the competition.

Moved Karen Naylor, seconded Tangi Utikere.

The COMMITTEE RESOLVED

1. That the Arts, Culture and Heritage Committee receive the presentation for information.

Clause 21-19 above was carried 13 votes to 0, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas and Tangi Utikere.

22-19

Presentation - All Saints Development Project

John Hornblow and associates made a presentation to the Committee regarding the All Saints Development Project.

The project was currently in the pre-consent process; fundraising had been put on hold until consent had been granted, at which time fundraising would recommence.

Approval from Heritage NZ was required for the project to proceed; protracted negotiations were continuing. Heritage NZ were more concerned with strengthening the building and had not been receptive to any development of the site, including street frontage changes. Significant changes had been made to the project in an effort to obtain Heritage NZ approval, which had seen it become less flamboyant and exciting.

Elected members were of the view that this was an important project for the city as it involved an iconic building, and hoped to see its reinvention.

Moved Rachel Bowen, seconded Vaughan Dennison.

The COMMITTEE RESOLVED

1. That the Arts, Culture and Heritage Committee receive the presentation for information.

Clause 22-19 above was carried 13 votes to 0, the voting being as follows:

For:

23-19

Public Comment

Public Comment was received from Nicky Birch and Grant O’Donnell outlining their concerns with the content of the s17A review document.

Moved Rachel Bowen, seconded Duncan McCann.

The COMMITTEE RESOLVED

1. That the public comment be received for information.

Clause 23-19 above was carried 13 votes to 0, the voting being as follows:

For:

24-19	s17A Arts and Culture Review - Consultation on Options Report, dated 30 May 2019 presented by the Head of Community Planning, Andrew Boyle. After discussion Elected Members requested that the Chief Executive be instructed to report back to the Committee with a revised consultation document for the s17A review to ensure the process was measured and thorough.
	Moved Brent Barrett, seconded Vaughan Dennison. The COMMITTEE RECOMMENDS 1. That the Chief Executive be instructed to report back to the Arts, Culture & Heritage Committee with a revised consultation document for the s17A review.
	Clause 24-19 above was carried 13 votes to 0, the voting being as follows: For: Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas and Tangi Utikere.
	Moved Rachel Bowen, seconded Jim Jefferies Note: On a motion that: “1. The Council consult on future options for the governance of Te Manawa and Caccia Birch and approve the attached consultation material for this purpose; subject to the following amendments: - Deletion of paragraph 1 under heading “where are we now?” (page 50) and include reference to the more recent creative New Zealand data instead of the 2016 focus group survey - Under the heading “Te Manawa” (page 51) delete the words “as Te Manawa does not have all the necessary expertise” - Under heading “Caccia Birch” 5th paragraph (page 51) add the option of considering an advisory board or friends group with specialist heritage skills or interests to help run Caccia Birch House - Under the heading “The Globe and Regent Theatres” 2nd paragraph (page 51) amend “… PwC review found there is sometimes competition instead of cooperation between the two theatres” by adding “and conference and function centre and Central Energy Trust Arena” - Under the heading “The Globe and Regent Theatres” 2nd paragraph (page 51) delete the words “and some shows at the Regent have been cancelled because of relatively low ticket sales instead of being transferred to the more suitable Globe.” 2. The Chairperson and Deputy Chairperson of the Arts, Culture and Heritage Committee be authorised to make minor amendments to the consultation material prior to publication. 3. The Council ask the Globe Theatre and Regent Theatre Trust Boards to work together to prepare a proposal by October 2019 on how the two Boards can take a more cooperative approach to governing and running the two theatres to deliver Council’s aspirations.” the motion was lost 4 votes to 9, the voting being as follows: For: Councillors Rachel Bowen, Lew Findlay QSM, Jim Jefferies and Karen Naylor. Against: Councillors Brent Barrett, Susan Baty, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lorna Johnson, Duncan McCann, Bruno Petrenas and Tangi Utikere.

25-19

Committee Work Schedule

Elected Members requested that the Chief Executive be instructed to provide a report to the next Finance & Performance meeting outlining options for assisting the Regent Theatre in funding a new sound system, including the option of providing a loan, to clarify options available.

Moved Karen Naylor, seconded Rachel Bowen.

The COMMITTEE RECOMMENDS

1. That the Arts, Culture and Heritage Committee receive its Work Schedule dated June 2019.

2. That the Chief Executive be instructed to provide a report to the next Finance & Performance Committee meeting outlining options for assisting the Regent Theatre in funding a new sound system, including the option of providing a loan.

Clause 25-19 above was carried 13 votes to 0, the voting being as follows:

For:

The meeting finished at 2.27pm

Confirmed 16 September 2019

Chairperson

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Arts, Culture and Heritage Committee

MEETING DATE: 9 September 2019

TITLE: Approval of Consultation Material for the Arts and Culture s17A Review

Presented By: Andrew Boyle, Head of Community Planning

APPROVED BY: David Murphy, Acting General Manager - Strategy & Planning

RECOMMENDATION(S) TO Arts, Culture and Heritage Committee

1. That the Committee approve the attached consultation material as outlined in Attachment 1 of the memorandum entitled Approval of Consultation Material for the Arts and Culture s17A Review considered at the Arts, Culture and Heritage Committee meeting on 9 September 2019.

2. That, as part of the consultation, the Committee decide whether to hold either:

a. an informal Let’s Talk meeting; or

b. formal hearings.

3. That the Chairperson and Deputy Chairperson of the Arts, Culture and Heritage Committee be authorised to make minor amendments to the consultation material prior to publication.

1. ISSUE

The Committee is being asked to approve the attached consultation material for stage 2 of the s17A Review of the Arts and Culture Council Controlled Organisations - Te Manawa, the Regent Theatre, the Globe Theatre, and Caccia Birch House.

A previous draft of the consultation material was presented to the Committee in June 2019. At that meeting Elected Members said the draft lacked options and details and asked the Chief Executive to report back with a revised version. This is included as Attachment 1.

The purpose of the consultation is to get stakeholder and wider community views on the ways that Te Manawa, the Regent Theatre, the Globe Theatre, and Caccia Birch House are governed and run. If, at the end of this, Council decides to make substantial changes to the way they are governed and run, then it will hold more detailed discussions with stakeholders and a further round of wide community consultation may be required.

2. BACKGROUND

Council’s vision for Palmerston North is ‘Small city benefits, Big city ambition’. Within this, one of Council’s strategic goals is to make Palmerston North a creative and exciting city. This involves transforming Palmerston North into an arts powerhouse with a national reputation for creativity and the arts. Council also wants to celebrate the city’s history and cultural diversity, and to ensure Palmerston North is an exciting place with plenty to do at night and on the weekends.

Arts, culture and heritage have a crucial role in this transformation. Hence the Council is reviewing the governance structure of the Te Manawa, the Regent and Globe Theatres, and Caccia Birch House all fully play their part.

The review is being carried out under Section 17A of the Local Government Act.

3. discussion

In 2017 the Council carried out its first round of s17A reviews. These included the Arts and Culture Council Controlled Organisations (CCOs). The reviews were high level reviews and, at the end of them, Council asked for a more detailed Stage 2 review of the CCOs.

PricewaterhouseCoopers (PwC) were engaged to assist with this Stage 2 review. PwC looked at the best forms of governance and service delivery for the CCOs. Options were:

· maintain the status quo

· set up new CCO(s)

· full governance and service delivery by Council (in house).

Levels of service and funding levels were excluded from the review.

PwC met with the Chair and Chief Executive / Manager of each of the CCOs, along with representatives of the three founding Te Manawa organisations (Te Manawa Art Society, Te Manawa Museum Society, The Science Centre Inc).

PwC also sought feedback on Te Manawa from Rangitāne – face to face meetings were not possible within the timeframe and limited written feedback was received.

Council circulated the PwC report to the CCOs Trust Boards and the three founding Te Manawa organisations for their comments.

A key finding from PwC was that the purpose of each organisation needs to be clarified so there is greater mutual understanding of the Council’s and organisations’ expectations, resulting in greater alignment with Council’s strategic expectations.

Other findings are that:

· There is a need to develop more capability in marketing and promotion of the organisations, particularly in the digital space.

· Council could provide greater support in terms of financial services, which would allow the organisations to focus more on meeting Council’s strategic expectations and revenue generation.

· There are some tensions in the relationships between Te Manawa and the founding organisations

· There is a lack of co-operation and coordination between the Globe and Regent Theatres.

· the Council and Caccia Birch need to be clearer about the main purpose of the House – is it to generate revenue as a venue for hire, or to be a community heritage building?

In response the Boards said they want to work with Council to discuss and address the issues raised in the PwC report.

The Boards also said that the evaluation criteria in the report were subjective and that different scores could be assigned from different perspectives. Council acknowledges this. One of the reasons for the PwC Report was to get an independent view. Nevertheless, all such evaluations are to some degree subjective, so Council is using them as starting points for further discussions, not as definitive decision-making tools.

The Te Manawa Board said that Council needs to put more emphasis on strengthening the special relationship between tangata whenua and Te Manawa. Te Manawa is the only Board that has tangata whenua representation guaranteed in its deed.

The Regent and Globe Boards said that the two theatres have distinct priorities and issues that are best addressed by separate Boards. A single Board could also lose the skills, expertise and voluntary effort of Board members who are committed to the particular theatre to which they are associated.

The Caccia Birch Trust Board agreed that clarity is needed about the main purpose of Caccia Birch House

Common themes in the feedback on the PwC report from the three founding Te Manawa organisations include:

· The three organisations support the review and want to work closely with the Council to improve outcomes for Te Manawa.

· Whatever option is chosen Te Manawa governance and management needs stronger and closer relationships with the founding organisations and the wider arts, heritage and science communities.

· Te Manawa needs to generate higher community profiles for science, arts and heritage.

· Te Manawa needs to promote the collections and provide heritage, science and arts exhibitions that wider communities can enjoy and learn from. Through these it can contribute to all Council’s goals.

Officers used this information to prepare draft consultation material. This was considered by the Arts, Culture and Heritage Committee in June. In discussion Elected Members said that the material needed to cover more options and to contain more details. The Committee therefore requested that the Chief Executive report back with a revised consultation material to ensure the process was measured and thorough.

The Committee also rejected a recommendation that, as first step the Council ask the Globe and Regent Theatre Trust Boards to work together to prepare a proposal by October 2019 on how the two Boards can take a more cooperative approach to governing and running the two theatres to deliver Council’s aspirations. If the proposal was unsatisfactory to Council it would have then pursued the option of a combined Trust Board.

The revised consultation material is attached. It includes a wider range of options for the organisations and has more details on these.

4. NEXT STEPS

Consultation will occur. This will start on or about the 21 October (ie, after the Council elections) and run for 5 weeks. The aim of the consultation is to get stakeholder and community feedback on the options outlined in the consultation material.

The consultation material will be sent to all key stakeholders. It will be put on Council’s website and would be promoted through social media and other appropriate means.

A stakeholder / community Q&A meeting will be held near the start of the consultation period for Council to explain the options. (This would be separate to the Let’s Talk meeting / hearings discussed below.)

There are no legal requirements for Council to hold hearings. Hence Council has three options:

1. Hold an open informal meeting where people would outline their thoughts to Elected Members and hear the thoughts of others. It would build on the approach taken for 10 Year Plan Let’s Talk sector meetings. This is the preferred option. Council would work with an organisation like Community Arts Palmerston North to co-host the meeting. This approach would encourage discussion and would be a good way to find common themes. The meeting would be held near the end of the submission period. Meeting notes would be kept and used for subsequent reports and decisions. However, a disadvantage of this approach is that we could not take peoples’ spoken comments at the meeting as submissions. Hence, Council would need to be clear that if they want to make a submission they can do this separately.

2. Hold formal hearings. These would be like the Annual Budget hearings. Submitters would have 10 minutes when they can speak at a Council meeting about their submissions. Formal minutes would be kept. This would work and many submitters are used to it. However, it is not the preferred option because of its formality. Also, it would need to follow the submission period so would be difficult to set up prior to Christmas.

3. Do not hold any hearings. This is not recommended, as it is likely that many submitters will want to discuss their submissions with Elected Members.

Staff will summarise the feedback and prepare a report for Council to consider in the new year. If Council decides to make substantial changes to the way any of the organisations are governed and run, then it will hold more detailed discussions with them. If Council’s decision is to bring any of the organisations in-house a further round of consultation and a 10 Year Plan amendment may be required under s97 of the LG Act.

Compliance and administration

Does the Committee have delegated authority to decide? If Yes quote relevant clause(s) from Delegations Manual 168.4		Yes
Are the decisions significant?		No
If they are significant do they affect land or a body of water?		No
Can this decision only be made through a 10 Year Plan?		No
Does this decision require consultation through the Special Consultative procedure?		No
Is there funding in the current Annual Plan for these actions?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to Goal 2: A Creative and Exciting City
The recommendations contribute to the outcomes of the Creative and Liveable Strategy
The recommendations contribute to the achievement of action/actions in the Arts Plan They also contribute to other Plans, eg the Culture and Heritage Plan and the Events and Festivals Plan.
Contribution to strategic direction	Part of Council’s strategic direction is to transform Palmerston North into an arts powerhouse with a national reputation for creativity and the arts. Council also wants to celebrate the City’s history and cultural diversity, and to ensure that Palmerston North is an exciting place with plenty to do on the weekends. The Arts and Cultural CCOs contribute to these strategic objectives

Attachments

Consultation Material for Arts and Culture ⇩

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Arts, Culture and Heritage Committee

MEETING DATE: 9 September 2019

TITLE: Potential Collaborative Opportunities with External Funding Providers to Increase the Level of Funding Available to the Arts Sector

Presented By: Joann Ransom - Community Development Manager

APPROVED BY: Debbie Duncan, General Manager - Community

RECOMMENDATION(S) TO Arts, Culture and Heritage Committee

1. That the memorandum titled “Potential Collaborative Opportunities with External Funding Providers to Increase the Level of Funding Available to the Arts Sector” be received for information.

1. ISSUE

This memorandum is in response to the resolution from the Arts, Culture and Heritage Committee on 18 November 2018:

“That the Chief Executive be instructed to explore potential collaborative opportunities with external funding providers to increase the level of funding available to the arts sector”.

2. BACKGROUND

A key concern raised by the CCNZ/Arts Committee meeting held on 20 September 2018 regarded the ongoing level of over-subscription for the Creative Communities Scheme.

This included requests for funding support for more significant arts activities i.e. CCNZ funding applications that fall in the $10,000-$20,000 range, and support for age-grade artistic competitions in the city, similar to the sports competitions supported by the Sports Events Partnership Fund.

Council approved, through the 2019/20 Annual Budget process, the addition of $50,000 to be available as a contestable fund to support national and regional arts events and competitions hosted in Palmerston North.

Council officers have also been in contact with external funding providers to identify if there are other opportunities to collaborate to further increase the level of funding accessible to the arts sector.

3. External Funding Providers

3.1 Other Trusts

The advice of the funding providers spoken with is that they are unable to accept an application from Council to re-distribute their funds as they are themselves the “tail-end” funder and their trust deeds will not allow it.

Eastern and Central Community Trust (ECCT) manage funds sourced from investments from its time as a community savings bank. ECCT’s new funding strategy 2018-2023 seeks to help build stronger more sustainable communities. ECCT Manager Jonathan Bell advised that ECCT does not grant funds to any organisation to on-fund, or on-gift to another organisation:

“Our Grants Policy prohibits this from happening. Our grants are made to an organisation for them to spend on the purpose or project that they applied to ECCT for.”

Perpetual Guardian administer the Legacy Performing Arts Trust Palmerston North. This trust represents the Evelyn Rawlins Arts Trust, Mavis & Beatrix Francis Arts Trust and Molly Atkinson Arts Trust. Funding is directed to individuals, groups and events pertaining to the performing arts within the City of Palmerston North. They too have confirmed that they are prohibited from using third party funders to distribute money from the trust funds they administer.

Central Energy Trust (CET) provides community funding either for projects that are energy related, or for costs associated with hosting major events or activities within the Central Energy Trust area. CET confirm that they are the sole distributers of their funding and are unable to pass on funds to third party funders for re-distribution.

3.2 Private donations

An alternative source of funding for the arts are donations from private funders. Te Awa Community Foundation was established to harness the generosity of local private donors, sourcing funding from one-off, regular and legacy donations.

Launched in April 2019, Te Awa Community Foundation will cover the Horizons region and joins a national network of 17 community foundations linking local benefactors with community projects. The Foundation will provide an opportunity for the community to give where they live, building a local fund to benefit the local community. Fundraising and investment of funds is a priority and it will be several years before grants are available.

4. Current Council support for the arts

Council has a primary role in informing the community of funding opportunities for the arts, and to support individual artists and art organisations to apply to access these funds. The funds include the Council grants (listed below) and other local and national funding bodies (see attachment 1 - Funding for the Arts – Palmerston North).

4.1 Funding

4.1.1 Arts Event Fund (new fund for 2019/20)

Officers are in the process of developing the administration of applications to the $50,000 contestable fund to support arts competitions in the City, in accordance with the Community Funding Policy, and the Creative Communities Scheme.

4.1.2 Creative Communities Scheme (CCNZ)

The scheme encourages local communities (including individual artists and groups) to create and present opportunities to participate in arts activities. Approximately two-thirds of the total fund is granted by Creative New Zealand based on population count with $68,220 available in the 2019/20 year (up from $62,056 in 2018/19). This is ‘topped-up’ by Council with an additional $32,228, giving a total fund of $100,448 for 2019/20.

Creative New Zealand set three funding criteria. The Palmerston North Creative Communities Scheme Committee may specify up to three local funding priorities. None have been specified to date, although the new Committee will be discussing the use of the priorities listed under Goal 2: A creative and exciting city.

4.1.3 Strategic Priority Grants (SPG)

These multi-year grants activate the potential of the community sector (including arts groups) to deliver on Council’s strategic direction by supporting projects, activities or services that contribute to Council priorities. For the three years beginning 1 July 2019, a total of $252,958 per year will be invested in arts organisations through SPGs.

4.1.4 Community Development Small Grants

These grants provide funding for essential administration expenses to enable not-for-profit community groups to operate. Through the 2018 Community Funding Policy the eligibility criteria were expanded to include arts organisations, but a funding round following this is yet to be completed.

4.1.5 Training Fund

This fund exists to provide training for community groups (including arts groups) to build capacity and capability based on a need’s analysis. This funding is administered by Palmerston North Community Services Council and is open to any non-profit Palmerston North organisation.

4.1.6 Local Initiative Fund

This fund provides an opportunity for new unique and innovative initiatives to develop which address an issue of community concern in the city. Whilst the fund is open to the whole community the focus is on contributing to priorities outlined in the Connected Community Strategy. In 2018/19 year $13,000 was invested in the art sector.

4.1.7 Major Events Fund

The Major Events Fund is aimed at attracting events that reinforce economic growth, including arts events. This fund is in transition from CEDA to Council. For the 2019/20 year $15,000 has been granted to support the New Zealand Young Performer Awards.

4.1.8 Contestable Community Event Fund

The administration processes are currently being developed for applications to the $26,000 contestable fund to support small community events that may arise through the year.

4.1.9 CCO funding

Council will be making grants of $3,551,643 in 2019/2020 to the cultural CCOs supporting the cultural CCOs: The Globe, Caccia Birch The Regent and Te Manawa.

4.1.10 Palmerston North Performing Arts Trust

The Arts Heart scheme provides up to $5,000 annually to support performing arts organisations to run educational development projects that foster talented young performers. The funding for these grants comes from a bequest, not Council funds, but applications are administered by Council.

4.2 Other Council support

Council officers work alongside art organisations and individual artists to advise them on applying to Council, local and national funders. For example, Palmerston North City Council has partnered with Strategic Grants to provide local community organisations with the knowledge and tools to secure grant funding. Strategic Grants aims to build the capacity of non-profit organisations to fundraise strategically.

Through this partnership community groups are provided with:

· A monthly emailed Grants Calendar, giving detailed information about upcoming grants.

· Training on how to use the Grants Calendar and tips for effective grant-seeking.

· A free one-year subscription to the GEM Local system (one registration per organisation).

GEM Local allows organisations to create a customised grants calendar, record their grants history, receive email alerts about upcoming grant and accountability deadlines, and find further tips on grant-seeking. This project is open to Palmerston North community organisations with an annual revenue under $1.5m.

Council officers also offer individual one-on-one guidance on matching projects to the most appropriate grant fund, and training and assistance to use the PNCC SmartyGrants online application system.

Unsuccessful applicants to Council grant funds may also be directed to other community art funding sources. This option is discussed during the grant assessment process and there is follow up with the applicant. Feedback to applicants is essential to provide other options and support.

5. Conclusion

Council does make significant funds available to the arts sector through a variety of different funds in addition to the Creative Communities Scheme fund.

While it is not possible for other trusts to allow Council to re-distribute their trust funds to the arts sector, Council can lead the provision of information to the community of funding opportunities for the arts and support individual artists and art organisations to apply to access these funds.

6. Compliance and administration

Does the Committee have delegated authority to decide? If Yes quote relevant clause(s) from Delegations Manual <Enter clause>		Yes
Are the decisions significant?		No
If they are significant do they affect land or a body of water?		No
Can this decision only be made through a 10 Year Plan?		No
Does this decision require consultation through the Special Consultative procedure?		No
Is there funding in the current Annual Plan for these actions?		No
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to Goal 2: A Creative and Exciting City
The recommendations contribute to the outcomes of the Creative and Liveable Strategy
The recommendations contribute to the achievement of action/actions in the Arts Plan The action is: Administer arts funding for the sector.
Contribution to strategic direction	Strategic Partnerships – work with Creative NZ to help fund arts activities in the city and across the region.

Attachments

Funding for the Arts - Palmerston North ⇩

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Arts, Culture and Heritage Committee

MEETING DATE: 9 September 2019

TITLE: Final Statement of Intents for Council CCOs: Caccia Birch, Globe Theatre, Regent Theatre and Te Manawa.

Presented By: Joann Ransom, Community Development Manager

APPROVED BY: Debbie Duncan, General Manager - Community

RECOMMENDATION(S) TO Council

1. That the report titled `Final Statement of Intents for Council CCOs: Caccia Birch, Globe Theatre, Regent Theatre and Te Manawa’ be accepted.

2. That the final Statement of Intent 2019-2022 submitted by Globe Theatre Trust Board be approved.

3. That the final Statement of Intent 2019-2022 submitted by Caccia Birch Trust Board be approved.

4. That the final Statement of Intent 2019-2022 submitted by Regent Theatre Trust Board be approved.

5. That the final Statement of Intent 2019-2022 submitted by Te Manawa Museums Trust Board be approved.

1. ISSUE

This report is to seek Council approval of the final 2019-2022 Statement of Intents of the cultural Council-Controlled organisations (CCO): Globe Theatre Trust, Caccia Birch Trust, Regent Theatre Trust and Te Manawa Museums Trust

2. BACKGROUND

2.1 A CCO is an organisation in which Council has the right to appoint at least fifty per cent of the trustees. Council has four cultural CCOs which were set up to independently manage Council-owned cultural facilities: Globe Theatre Trust Board, Te Manawa Museums Trust, Caccia Birch Trust Board and Regent Theatre Trust. These organisations are each managed by a Board of Trustees. All CCOs covered by the Local Government Act must have a statement of intent (SOI). The purpose of the SOI is to publicly state the activities and intentions of a CCO for the year (and the objectives to which those activities will contribute); to provide an opportunity for Council to influence the direction of the CCO; and to provide a basis for accountability to the Council for the performance of the CCO.

The process for developing the SOI is:

· The Board of a CCO delivers a draft SOI to Council on or before 1 March each year.

· Council considers the draft SOI and provides comments back to the CCO by 1 May.

· The Board of a CCO must deliver their completed SOI by 30 June.

· The final SOI is approved by Council.

2.2 Draft Statements of Intent for 2019-2022 were reported to the Arts, Cultural and Heritage Committee on 15^th April 2019, and resulted in the following recommendations:

1. That Council receive the six-month reports to December 2018 submitted by Globe Theatre Trust Board, Te Manawa Museums Trust, Caccia Birch Trust Board and Regent Theatre Trust (the cultural CCOs).

2. That Council receive the draft Statements of Intent 2019–2022 submitted by the cultural CCOs subject to the below comments for consideration by the Boards.

3. The Globe to clarify strategic Priority 2 in the Statement of Intent to include `represent the diversity of the Palmerston North Community’ as referenced on page 6 of the Draft Statement of Intent.

4. The Regent to modify strategic objective 3 under Migrant and Cultural Communities to `To assist with 2 additional culturally diverse events’ and the word `additional’ to be added in each year.

5. That the Te Manawa Trust Board consider increasing the KPI for visitor numbers in the Statement of Intent.

6. That the CCOs consider their role in Eco-City Strategy Priority 2 (Work with the Community to Reduce Carbon Emissions) in their statements of intent.

7. That the Chief Executive be instructed to review the asset renewal process for the Regent Theatre Trust with particular reference to the Sound System and report back to the Arts, Culture and Heritage Committee in June 2019.

8. That the Chief Executive go back to Caccia Birch Trust Board to address the unsustainable financial issue as presented in their Statement of Intent.

3. SUmmary of changes from draft to Final Statement of Intents

3.1 Caccia Birch

The final SOI from Caccia Birch included a supplementary report from the Chair in response to the rejection of funding for additional staffing to meet future requirements of the operation of Caccia Birch.

In summary, the Chair explains that in developing the Draft SOI the Board had adopted an approach of being more proactive in achieving mutual goals arising from the new vision and strategic direction of Council. The Board now accepts that it appears Council’s wish is for the Board to operate within the existing funding limits and levels of service. The Board’s inability to fund an extra staff member will result in the Board restricting its operational capacity to existing levels and the budget has been adjusted to a basic manageable level accordingly.

Changes required

Changes made in Final SOI

That the CCOs consider their role in Eco-City Strategy Priority 2 (Work with the Community to Reduce Carbon Emissions) in their statements of intent.

1. The SOI contains this clause describing how it contributes to Council’s vision:

“The day to day operations consider the environment through recycling, green-waste, rubbish reduction, being smart about energy consumption with lighting upgrades, heating upgrades and investigating solar power options.”

2. Performance Measures. The Board will:

“build a waste recycle and storage unit in 2019/2020.”

That the Chief Executive go back to Caccia Birch Trust Board to address the unsustainable financial issue as presented in their Statement of Intent.

1. Budget Assumptions. These have been adjusted to now include:

e) The budget does not include provision for additional operational staff.

f) The proposed budget forecasts a small cash deficit in year one and two, covered by the reserves.

g) The timing of Councils 10-year plan, the new City vision encouraging this CCO to grow its activities and the 17A findings has not helped the Trust plan a meaningful and successful course of action and budget for the future.

h) Additional funding is required to support the growth of activities, especially those of a passive tourism activity that are unlikely to generate revenue, but which will contribute to the success of the City’s vision.

2. Forecast Statement of Financial Performance.

The budget has been adjusted from a forecast year end deficit for 2019/2020 of $40,123 deficit to a deficit of $18,749. This will be funded from accumulated surpluses which are forecasted to be $103,111 by 30/06/2020.

3.2 Globe Theatre Trust

Changes required

Changes made in Final SOI

That the CCOs consider their role in Eco-City Strategy Priority 2 (Work with the Community to Reduce Carbon Emissions) in their statements of intent.

Addition made to the Trust’s strategic objective regarding facility development to include:

“In addition, the Board will encourage and support Council, as asset manager, to ensure that these developments incorporate incremental sustainability and environmental improvements to contribute to the reduction in CO2 emissions.”

The Globe to clarify strategic Priority 2 in the Statement of Intent to include `represent the diversity of the Palmerston North Community’ as referenced on page 6 of the Draft Statement of Intent.

Strategic Priority 2 reworded to:

“Strategic Priority 2: Support the local performing arts community to showcase their diverse talents at the Globe, and working to ensure our users represent the diversity of the Palmerston North community.”

3.3 Regent Theatre Trust Board

Changes required	Changes made in Final SOI
That the CCOs consider their role in Eco-City Strategy Priority 2 (Work with the Community to Reduce Carbon Emissions) in their statements of intent.	One of the Regent’s strategic objectives is to: “Support environmental sustainability. The Regent on Broadway is committed to the Palmerston North city’s waste management and minimisation plan and will introduce strategy to reuse or reduce waste. · Develop relationships with contractors and suppliers that have strong environmental sustainability policies. · Introduce processes that support good environmental practice. · Introduce segregated waste collection so as to recycle and minimise the impact on landfill waste. · Introduce the use of reusable/recyclable serving (glassware) containers.”
The Regent to modify strategic objective 3 under Migrant and Cultural Communities to `To assist with 2 additional culturally diverse events’ and the word `additional’ to be added in each year.	Council’s recommendation was discussed by the Regent Board and it was noted that to modify this particular strategic objective as requested would be an unachievable objective as it would not be possible to assist 2 additional culturally diverse each year for the next 3 years. Therefore the Board submitted the following strategic objective which will achieve the intent of the objective over the next 3 years: · 2019/2020: To maintain the number of culturally diverse events that were assisted in the previous year. · 2020/2021: To maintain the number of culturally diverse events that were assisted in the previous year and to assist with 1 additional culturally diverse event. · 2021/2022: To maintain the number of culturally diverse events that were assisted in the previous year and to assist with 1 additional culturally diverse event.
That the Chief Executive be instructed to review the asset renewal process for the Regent Theatre Trust with particular reference to the Sound System and report back to the Arts, Culture and Heritage Committee in June 2019.	This was addressed at a meeting of the Arts, Culture and Heritage Committee on 17 June 2019. The COMMITTEE RESOLVED 1. That the Arts, Culture and Heritage Committee receive the report titled ‘Review of Asset Renewal Process for the Regent Theatre Trust’ dated 16 May 2019. 2. That the Arts Culture and Heritage Committee confirm that the sound system in the Regent Theatre is a Tenant fit-out item and a non-Council-owned, non-fixed asset. 3. That the item be left to lie on the table until the Finance and Performance Committee meeting in August 2019.

3.4 Te Manawa

Changes required

Changes made in Final SOI

That the CCOs consider their role in Eco-City Strategy Priority 2 (Work with the Community to Reduce Carbon Emissions) in their statements of intent.

Te Manawa Objective 4: “Te Manawa is focussed on developing for the future” has been increased from 5 to 6 bullet points with the addition of: “Consider environmental impacts when planning.”

That the Te Manawa Trust Board consider increasing the KPI for visitor numbers in the Statement of Intent.

KPI changes have been made as requested:

“A high number of visitors to Te Manawa experiences” has been increased from 150k per annum to 170k.

4. Conclusion

The four CCOs have all made the changes to their Draft SOIs as requested by Council.

Letters of Expectation will be sent to all CCOs in December / January. These will enable the boards to prepare draft Statement of Intent’s that align with Council’s wishes. It may be that Council has explicit requirements that should be included in the Letters of Expectations.

5. Compliance and administration

Are the decisions significant?		No
If they are significant do they affect land or a body of water?		No
Can this decision only be made through a 10 Year Plan?		No
Does this decision require consultation through the Special Consultative procedure?		No
Is there funding in the current Annual Plan for these actions?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to Goal 2: A Creative and Exciting City
The recommendations contribute to the outcomes of the Creative and Liveable Strategy
The recommendations contribute to the achievement of action/actions in the Arts Plan The action is: d) Strategic partnerships: Work with Council Controlled Organisations to implement Council strategy.
Contribution to strategic direction	The Globe and The Regent have a critical role to play in contributing towards Palmerston North becoming an arts powerhouse with a national reputation for creativity and the arts. Both are venues for hire, rather than developing their own shows, and work with promoters to bring international and national shows to Palmerston North, to complement the many local shows developed by community organisations. Te Manawa is part of the arts precinct, the City’s art, history and science museum, and its role is to contribute to the Arts Powerhouse ambition through the housing and display of arts, heritage, Toi Maori and treasures, and science public assets. The Council wants increasing visibility and rotation of the city’s art collection. Caccia Birch is a listed Category 1 Heritage Status property. It contributes to Priority 2 of the Creative and Liveable Strategy: Celebrate the City’s history and diversity, and build on the strength of being a city of many cultures and languages. Council invests in cultural heritage assets, including Caccia Birch and The Regent, to give the community the opportunity to use these buildings and appreciate their heritage values.

Attachments

1.	Caccia Birch Final SOI 2019 - 2022 ⇩
2.	The Globe Final SOI 2019 - 2022 ⇩
3.	The Regent Final SOI 2019 - 2022 ⇩
4.	Te Manawa Final SOI 2019 - 2022 ⇩

Rachel Bowen (Chairperson)
Jim Jefferies (Deputy Chairperson)
Grant Smith (The Mayor)
Susan Baty	Vaughan Dennison
Brent Barrett	Karen Naylor
Adrian Broad	Bruno Petrenas
Gabrielle Bundy-Cooke	Tangi Utikere