Agenda of Napier People and Places Committee

Napier People and Places Committee - 24 September 2020 - Open Agenda Item 1

Agenda Items

1. Aquarium STAPP Covid Recovery Funding

Type of Report:	Contractual
Legal Reference:	N/A
Document ID:	963081
Reporting Officer/s & Unit:	Rachel Haydon, General Manager, National Aquarium of New Zealand

1.1 Purpose of Report

This report is to seek Council agreement to the terms of a funding agreement between Napier City Council (NCC) and the Ministry of Business, Innovation and Employment (MBIE) for a grant offered from Strategic Tourism Asset Protection Programme (STAPP) funding.

Officer’s Recommendation

The Napier People and Places Committee:

a. Approve to agree to the terms of the Strategic Tourism Assets Protection Programme (STAPP) funding agreement with MBIE.

b. Approve to accept the funding in line with the agreement

$300k 20/21

$200k 21/22

c. Delegate authority to the Director Corporate Services the negotiation of the loan agreement should Council wish to take this up

d. Delegate authority to the Director Community Services to sign the funding agreement and if required make any minor changes as required by MBIE (Ministry of Business, Innovation and Employment)

1.2 Background Summary

The Strategic Tourism Assets Protection Programme (STAPP) was setup to support regionally significant tourism assets and their operations. Decisions on funding allocations were made by the Tourism Recovery Ministers Group, supported by MBIE advice. The approval of the STAPP funding recognises the National Aquarium of New Zealand as a critical and strategic tourism asset, not only regionally, but nationally.

The National Aquarium of New Zealand made an application to the STAPP fund as a strategic tourism asset for Hawke’s Bay that suffered a reduction in admissions, and subsequently revenue, during the lockdown period of 23^rd March to 14^th of May 2020, and following Level 2 restrictions.

The application applied a minimum request for funding to support lost revenue of $400,000 over the COVID-19 lockdown period at Alert Levels 3 and 4. It was outlined this funding would be used to support team payroll and other animal-related costs. The application also included a maximum amount of funding sought of $1,094,000 that also included projected (speculative) loss.

The application was successful for the lower end of the funding requested. An initial support package of $800,000 in both grants and loans was offered across a two-year agreement period. This is made up of a grant of up to $500,000, with a balance of $300,000 in funding to be accessed through a loan, should it be required. The loan will be on favourable interest rate terms and will be repayable over five years. The conditions are yet to be confirmed by MBIE.

1.3 Issues

The funding over two years will support the purposes of:

· Wages for visitor-facing staff only

· Maintenance

· Utilities

· Staff training

· Insurance

· Cleaning

· Marketing

Council will be required to submit six-monthly reports on agreed funding indicators. The final completion report will be due in August 2022. In terms of payment over the two-year funding period, the following key clauses of the proposed payment terms are offered – the full conditions are outlined in the Schedule 1 (Attachment A). A cover letter for the agreement is Attachment B.

9. Payment terms of the proposed funding agreement (clause 2.1, Schedule 2)

9.1. Subject to clause 9 of this Schedule, payments will be made in accordance with the following table:

Payment	Payment Amount (excl GST)	Due Date for the Deliverable	Deliverable
1	$200,000	N/A	This Agreement, duly signed by both Parties
2	$100,000	20 February 2021	Six Month Report for the period on and from the Commencement Date to 20 February 2021 (inclusive)
3	$100,000	20 August 2021	Six Month Report for the period on and from 21 February 2021 to 20 August 2021 (inclusive)
4	$100,000	20 February 2022	Six Month Report for the period on and from 21 August 2021 to 20 February 2021 (inclusive)
TOTAL		$500,000

In terms of the reporting requirements proposed by MBIE, their expectations outline two six-month reports and a final completion report:

For the purposes of reporting, a total of four (minimum) Living Standards Framework Funding Indicators must be chosen from those offered by MBIE (see Appendix 3 of the funding agreement in Attachment A). It is proposed that these are:

Living Standards Framework Capital	Tourism area of impact the Funding Indicator is seeking to address	Funding Indicator	Examples of reporting and evidence types (please note that the reporting and evidence provided by you should be appropriate to your circumstances)
Physical/ financial capital	Sustainability of supply chains	The sustainability of the business’s supply chain is improved. This includes efforts to ensure supply chain is more economically, environmentally and socially sustainable.	· Purchasing/procurement policies or plans are put in place. · Evidence of implementation or intention to implement policies and/or plans. This may include: o assessment of existing supply chain o correspondence with suppliers communicating sustainability expectations o changes in suppliers resulting from supply chain improvements
Human capital	Employee skill levels	Supporting employees to develop skills and qualifications.	· Development plans in place for all employees that include supporting employees to progress toward obtaining an NZQA recognised qualification (unit standard or full qualification) in tourism, heritage, arts, culture or another relevant field. · Evidence such as a statement about employees with development plans. (Employees can be identified as Employee 1, Employee 2 etc.)
Natural capital	Biodiversity endangerment/ disruption	The business contributes positively to the natural assets it operates on and minimises or rehabilitates any disturbance or disruption caused by business activity.	· Business can demonstrate compliance with DOC concessions or licences. · Business understands its impact on biodiversity at the sites it operates at. · Business invests (financial or other resources) into local projects to support biodiversity protection and rehabilitation.
Social capital	Visitor satisfaction	Satisfaction levels of visitors to the business are improving.	Note that this indicator could be selected in instances where the business may have experienced previously high levels of visitor satisfaction; however, preferences and perceptions may be changing. (For example, domestic visitors may experience the offering differently than international visitors). · Evidence could include: o ratings on review websites o customer feedback form ratings · Evidence of having responded to visitor feedback and conducting any changes required.

1.4 Significance and Engagement

N/A – does not trigger Council’s Significance and Engagement Policy.

1.5 Implications

Financial

a. Accept the funding of $500,000 over two years

b. Decline funding.

Social & Policy

N/A

Risk

N/A

1.6 Options

The options available to Council are as follows:

a. Agree to the terms of funding agreement and accept the grant of $500,000.

b. Decline the funding.

1.7 Development of Preferred Option

The preferred option is to agree to the terms of funding and accept the grant of $500,000.

1.8 Attachments

a STAPP-JUN20-196 National Aquarium of New Zealand Funding Ageement ⇩

b STAPP - Cover letter for Funding Agreement ⇩

Napier People and Places Committee - 24 September 2020 - Open Agenda

PUBLIC EXCLUDED ITEMS

That the public be excluded from the following parts of the proceedings of this meeting, namely:

AGENDA ITEMS

1. Offsite Kiwi Facility Lease

2. Grants Allocation SubCommittee 2020/21 - Distribution of Funds

The general subject of each matter to be considered while the public was excluded, the reasons 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 were 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) to the passing of this resolution.

1. Offsite Kiwi Facility Lease

7(2)(i) Enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

48(1)A That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist:
(i) Where the local authority is named or specified in Schedule 1 of this Act, under Section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.

2. Grants Allocation SubCommittee 2020/21 - Distribution of Funds

7(2)(c)(i) Protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information or information from the same source and it is in the public interest that such information should continue to be supplied

Napier People and Places Committee - 24 September 2020 - Open Agenda

Napier People and Places Committee

Open Minutes

Meeting Date:

Thursday 2 July 2020

Time:

10am – 10.15am

Venue

Large Exhibition Hall

Napier War Memorial Centre

Marine Parade

Napier

Zoom livestreamed to Facebook

Present

Mayor Wise, Councillor Boag (In the Chair), Deputy Mayor Brosnan, Councillors Brosnan, Browne, Chrystal, Mawson, McGrath, Price, Simpson, Tapine, Taylor and Wright

In Attendance

Interim Chief Executive, Director Community Services, Director Corporate Services, Director City Strategy

Manager Community Strategies

Senior Māori Advisor

Chief Financial Officer

Libraries Manager

Manager Investments and Funding

Administration

Governance Team

The Senior Māori Advisor opened the meeting with a Karakia.

Apologies

Councillors Brosnan/ Tapine

That the apology from Councillor Crown be accepted.

Carried

Conflicts of interest

Nil

Public forum

Nil

Announcements by the Mayor

Nil

Announcements by the Chairperson

Nil

Announcements by the management

Recovery Update

The Libraries Manager provided an update on a number of aspects to the post-COVID-19 recovery programmes underway – information can be found at Appendix One.

There have already been applications to the business recovery fund so anyone interested in applying are encouraged to do so quickly. Information in relation to the two funds is on the Council website.

Assistance is available for people applying to the fund with the process and any queries.

Remuneration Authority Determination

Following legislation enacted in May, the Remuneration Authority is now able to reduce elected member salaries. They have chosen to make reductions only for those who earn over $100k – for Napier this only impacts the Mayor. It is a directive, which is not able to be challenged, and is applicable for a six month period to January 2021.

Any personal donations made by impacted parties were factored into the final determination where these were advised by the elected member in question.

Confirmation of minutes

Councillors Price / Chrystal

That the Minutes of the meeting held on 27 February 2020 were taken as a true and accurate record of the meeting.

Carried

Agenda Items

1. Library Membership Policy

Type of Report:	Operational
Legal Reference:	N/A
Document ID:	934519
Reporting Officer/s & Unit:	Darran Gillies, Libraries Manager

1.1 Purpose of Report

To define what library membership is, who is entitled to the membership and what the conditions of membership are. The policy should reflect the five objectives of the library strategy; Space for All, Enabling Access, Knowledge Advocacy, Community Collaborator and Sustainable futures.

At the Meeting

The Libraries Manager spoke to the report touching briefly on the updates that have been made to the Policy. The intention is to simplify the Policy to make it easier to understand and administer.

During the ‘lockdown’ a large number of online registrations took place which the library was very pleased to support.

In response to questions from Councillors it was clarified that:

· There is still an arrangement with Hastings District Council to transport books back to Napier when they are returned to a supermarket return bay.

· The cost of using the courier service for the transport process is minimal and it is an easier arrangement than dedicated council vehicles for this purpose would be.

· It was also noted that Napier library books could be returned to any library in New Zealand.

Committee's recommendation

Councillors Mawson / Chrystal

The Napier People and Places Committee:

a. Approve the Library Membership Policy

Carried

PUBLIC EXCLUDED ITEMS

Councillor Mawson / Mayor Wise

That the public (excepting three representatives from the applying group) be excluded from the following parts of the proceedings of this meeting, namely:

1. Council Projects Fund Application

Carried

General subject of each matter to be considered.

Reason for passing this resolution in relation to each matter.

Ground(s) under section 48(1) to the passing of this resolution.

1. Council Projects Fund Application

7(2)(h) Enable the local authority to carry out, without prejudice or disadvantage, commercial activities

7(2)(i) Enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

The meeting moved into committee at 10.15am

The meeting was adjourned at 10.15am and reconvened at 10.30am

Approved and adopted as a true and accurate record of the meeting.

Chairperson .........................................................................................................................

Date of approval ..................................................................................................................

Appendix One

Committee Members	Mayor Wise, Councillor Boag (In the Chair), Deputy Mayor Brosnan, Councillors Browne, Chrystal, Crown, Mawson, McGrath, Price, Simpson, Tapine, Taylor and Wright
Officer Responsible	Director Community Services
Administration	Governance Team
	Next Napier People and Places Committee Meeting Thursday 5 November 2020