At the close of
the agenda no apologies had been received.
2 Declaration of Interest
Members are
reminded of the need to be vigilant to stand aside from decision making when a
conflict arises between their role as a member and any private or other
external interest they might have.
3 Confirmation of Minutes
|
That the Finance and Performance Committee:
a)
confirm the ordinary minutes of its meeting,
held on Thursday, 20 February 2014, including the
confidential section, as a true and correct record.
|
4 Petitions
At the close of
the agenda no requests to present petitions had been received.
5 Public Input
Standing Order
3.21 provides for Public Input. Applications to speak must be made to the
Committee Secretary, in writing, no later than two (2) working days
prior to the meeting and must include the subject matter. The meeting
Chairperson has the discretion to decline any application that does not meet
the requirements of Standing Orders. A maximum of thirty (30) minutes
is allocated to the period for public input with five (5) minutes
speaking time for each speaker.
|
5.1 Bruce Pulman Park
Trust - Bruce Pulman and Marie Stechman
|
|
Purpose
1. Bruce Pulman
and Marie Stechman wish to address the committee in support of the Bruce Pulman
Park Trust requesting for a community loan.
|
|
Recommendation/s
That the Finance and Performance Committee:
a) thank Bruce
Pulman and Marie Stechman for their attendance in support of the Bruce Pulman
Park Trust report.
|
6 Local Board Input
Standing Order
3.22 provides for Local Board Input. The Chairperson (or nominee of that
Chairperson) is entitled to speak for up to five (5) minutes during this
time. The Chairperson of the Local Board (or nominee of that Chairperson)
shall wherever practical, give two (2) days notice of their wish to
speak. The meeting Chairperson has the discretion to decline any application
that does not meet the requirements of Standing Orders.
This right is
in addition to the right under Standing Order 3.9.14 to speak to matters on the
agenda.
At the close of
the agenda no requests for local board input had been received.
7 Extraordinary Business
Section 46A(7)
of the Local Government Official Information and Meetings Act 1987 (as amended)
states:
“An item that is
not on the agenda for a meeting may be dealt with at that meeting if-
(a) The local authority by resolution so decides; and
(b) The presiding member explains at the meeting, at a time
when it is open to the public,-
(i) The
reason why the item is not on the agenda; and
(ii) The reason why the discussion of the item cannot be
delayed until a subsequent meeting.”
Section 46A(7A)
of the Local Government Official Information and Meetings Act 1987 (as amended)
states:
“Where an item
is not on the agenda for a meeting,-
(a) That item may be discussed at that meeting if-
(i) That item is a minor matter relating to the general
business of the local authority; and
(ii) the presiding member explains at the beginning of the
meeting, at a time when it is open to the public, that the item will be
discussed at the meeting; but
(b) no resolution, decision or recommendation may be made in
respect of that item except to refer that item to a subsequent meeting of the
local authority for further discussion.”
8 Notices of Motion
At the close of
the agenda no requests for notices of motion had been received.
|
Finance and
Performance Committee
13 March 2014
|
|
OurAuckland review
File No.:
CP2014/03629
Purpose
This report responds to resolution
FIN/2013/5 (b), December 2013: “request officers to
assess alternatives to OurAuckland including an insert in local community
newspapers and a new broadsheet.”
Executive
Summary
This report outlines a number of alternatives for
formatting and distributing OurAuckland and the related costs of each.
It also presents learnings from OurAuckland’s
continuous improvement program. A summary is provided in the table below where
shaded boxes show that taking an alternative approach would have a positive
impact or maintain status quo in terms of achieving OurAuckland’s key targets
of reaching all Aucklanders with regional and local content, while delivering
value for money.
|
Format and
frequency options
|
Annual cost
(production/delivery)
|
Impact on
reach vs. current state
|
Other impacts
|
|
A4, monthly,
16pg, current letterbox
|
$1,172,512
|
None
|
Not compact format
preferred by readers
|
|
Broadsheet,
monthly, 4pp, current letterbox
|
$1,047,233
|
None
|
Not compact
format preferred by readers
|
|
A5, fortnightly
distribution, 16pg, current letterbox
|
$1,607,390
|
Same reach,
twice as often
|
Additional
resource required; pre-launch testing indicated that readers prefer monthly
|
|
Solus into
letterbox via Postie, A5 monthly, 24pg
|
$1,165,879
|
None
|
Delivered on its
own, but most days of week letterbox will also contain junk mail
|
|
Addressed mail,
A5 monthly, 24pg
|
$4,635,268
|
None
|
None
|
|
Current
distribution plus supermarket stands, A5 monthly, 24pg
|
$926,543, plus
costs indicated in 4.4 below
|
Additional 3,000
copies/month, including duplication with other distribution channels
|
Resource
intensive to set up and maintain; potential littering near supermarkets;
inability to match content to customers’ ward/board area
|
|
Insert into
community papers, A5 monthly, 24pg
|
$889,050
|
Reach and
readership vary by local board area (detail in 4.5)
|
Limited ability
to tailor content to local board
|
|
Current state:
monthly into letterboxes, A5 format, 24pg
|
$926,543
|
Reach remains
at 98% of households, readership averages 53%
|
Two pages
tailored to each ward, potential to increase
|
|
Recommendation/s
That the Finance and Performance Committee:
a) note the contents
of the paper.
|
Discussion
1. Alternative
formats and frequency of distribution (print edition)
The table below presents the costs of
different formats and more frequent distribution:
|
Option
|
Cost per month
|
Cost per household per month
|
Annual Cost
|
Variance to current costs
|
|
Monthly, A4, 16pg
|
$106,592
|
$0.23
|
$1,172,512
|
$245,969
|
|
Broadsheet, 4pg
|
$95,203
|
$0.20
|
$1,047,233
|
$120,690
|
|
Fortnightly distribution, A5, 16pg
|
$142,126
|
$0.30
($0.15 per fortnight)
|
$1,607,390
|
*$680,847
|
|
Current state: monthly, A5 format, 24pg
|
$84,261
|
$0.18
|
$926,543
|
$0
|
*Excludes cost of additional resource
required to deliver two publications per month.
A4 format
If council were to use the current
delivery network, increase the size from A5 to A4 and reduce pagination from 24
pages to 16 pages, the cost per thousand to deliver increases due to the weight
of the magazine. The overall monthly distribution cost would therefore increase
from $18,696 to $24,446. The annual difference in cost would be $245,969.
Broadsheet
Broadsheet format (620x420mm, folded to
310x210mm) is a similar size to the NZ Herald.
2. Current
formats and frequency
The OurAuckland suite of communications comprises an A5 print publication; an A4
accessible version; digital content on Auckland Council’s website, via email
and a tablet/mobile app; and a recording hosted by the Royal New Zealand
Foundation of the Blind. The combined suite reaches over 98 per cent of
Auckland households.
Qualitative and quantitative research has been conducted
since the publication’s inception nearly three years ago and the latest data
shows:
· 62% recognition of OurAuckland
· Nearly 80% of readers have taken an action as a result of
reading OurAuckland, including submitting feedback on a consultation,
attending an event, visiting a facility or council’s website, or learning more
about council initiatives and plans
· In 2013, 4% of respondents indicated that they didn’t like
much about OurAuckland and thought it was a waste of money, down from 6%
in 2012 and 10% in 2011.
The current A5 format was determined by
pre-launch testing (2011) in which it was the preferred size out of six options
shown to Aucklanders. Our annual research shows that the A5 size is well-liked,
and easy to read and carry. Pre-launch testing indicated that monthly delivery
is the preferred frequency: less frequent delivery is considered to be not
timely enough, and more frequent delivery raises a concern of ‘funds wastage’.
In December 2013, qualitative research was conducted amongst Pacific peoples after
data highlighted their lower than average readership levels in order to
identify better ways to reach these communities.
The plan for OurAuckland
is to continue grow its digital distribution in step with digital usage
among Aucklanders, and over time reduce its reliance on print. This would
deliver cost benefits, improve speed to market and improve the sustainable
footprint of the publication.
3. Paper
stock options
OurAuckland paper stock is reviewed annually, due to new products entering the
market, against the following criteria:
· minimum page
show-through to optimise readability for readers with sight impairments
· sustainably sourced
(100% recyclable, PEFC Certification, elemental chlorine free)
· reliable supplier –
able to guarantee ongoing supply of large volumes as our stock is ordered up
to six months in advance to gain cost benefits
· differentiation from
paper stocks used for junk mail.
Uno Bright Satin
is currently the most economical stock that meets our requirements. Sample
comparisons are as follow:
|
80gsm Uno
bright satin (current)
|
$57,201
|
Savings per
issue
|
|
65gsm Solaris
bulk 1.55
|
$55,221
|
$1,980
|
|
54gsm Solaris
bulk 1.55
|
$53,468
|
$3,733
|
4. Alternative
distribution options
4.1 Solus letterbox ‘Postie’ distribution
(delivered with posted mail)
Although the more expensive Postie
distribution option would separate OurAuckland from circulars at the
time of delivery, OurAuckland would still end up in the letterbox
alongside circulars. Postie distribution would not provide for tailored ward
content as Postie boundaries are not aligned to Auckland Council ward
boundaries. If we printed only one version of OurAuckland for the whole
region and used the Postie distribution, the overall
monthly cost would increase to $105,989 per month or $0.22 per copy.
4.2 Solus distribution (delivered by
walkers to letterboxes as a standalone item)
No distributors in New Zealand
currently offer a solus, unaddressed letterbox drop as this is not commercially
sustainable for them. With only one mailer to deliver, there is not enough of
an incentive for walkers to complete rounds.
4.3 Direct mail (delivered by NZ Post)
Delivering OurAuckland as an
addressed mail piece would increase costs to $421,388 per issue, five times the
current cost. Production lead-time would increase by two weeks to flow-wrap and
label the magazine.
4.4 Distribution through
supermarkets
Supermarket
distribution was last explored in 2012. Arrangements would need to be made with
supermarkets on a store-by-store basis with indicative costs as follow:
- 15 x branded
metal stands : $16,500 (excluding any fees payable to stores)
- Distribution /
re-stocking x 15 stands : $1,200 per issue
- Additional
print costs : $540 per issue
Excluding
initial stand production costs, this style of distribution would cost $1,740
per month to distribute an additional 3,000 copies (that is, $0.58 per copy,
compared to $0.18 via letterbox distribution). Additional resource would be
required to set up and maintain individual store relationships. Some stores are
unwilling to support the distribution of free publications as they can create
litter in the store vicinity.
4.5 Community papers
Community papers are circulated across the
entirety of some local board areas such as the Western Leader in Waitakere and
the North Shore Times in Devonport-Takapuna. Other local board areas such as Ōtara-Papatoetoe and Puketāpapa have lower coverage (78 per cent
via Manukau Courier and 65 per cent via Central Leader respectively).
Readership is monitored for 27 of the 40 community papers in Auckland. For
those monitored, readership ranges from 24 per cent to 81 per cent.
For comparison, OurAuckland is
consistently circulated to 98 per cent of Auckland households and readership is
currently at 53 per cent and increasing year on year.
Community papers cross over ward and local
board boundaries, limiting the ability to localise content. Their readership is
weakening in some areas, particularly inner-city Auckland and surrounding
suburbs.
The cost to distribute OurAuckland via
an insert into community papers, assuming one version rather than multiple ward
versions with tailored content, is comparable to the current distribution costs
via letterbox (see section 1).
4.6 NZ Herald
NZ Herald
readership is 35% (all people 18+ in Auckland). Readership is currently
weakening, particularly with audiences under 30.
It is possible
to buy distribution for the Auckland region which includes some distribution
outside of the Auckland Council boundaries, e.g. Taupo North. The cost of
inserting OurAuckland monthly would be $10,350, and print costs would
reduce with only one version to print. A single, full page advertisement would
be $11,773.
4.7 Digital direct channels
The two largest
digital databases available are:
- Smile City : reaches 58,367 Aucklanders, data cost of $8,805
- Great New Zealand Survey : reaches 34,746 Aucklanders, data cost of
$8,430.
5. Inclusion
of public notices
The legal requirements for the majority of
public notices would require a weekly publication so that the notices were
timely enough (see section 3 for cost of weekly publication), assuming the
content for public notices is available in advance to cater to print deadlines.
Public notices vary a great deal in terms of length and at short notice, with
cost and paper sourcing implications for the print publication.
6. Two
versions of OurAuckland (entertainment versus council business)
Research indicates that the most popular
content within OurAuckland is the ‘what’s on’ (events) section, followed
by news about local areas. Popular content draws readers in, gets them reading
the magazine and then introduces them to the more serious content. Separating
content into two versions could result in reduced readership of some content.
7. Current
distribution
The table below shows OurAuckland’s
current distribution network and how many in our community are reached by each
channel.
|
Method of
delivery
|
Monthly
circulation
|
Notes
|
|
P.O. boxes
|
42,610
|
To
compensate for inability to deliver to some apartment buildings and rural
households
|
|
Apartments,
cafes, libraries, council service centres and ferries
|
15,949
|
Includes A4
accessible version
|
|
Events
eNewsletter
|
9,250*
|
*Weekly
email distribution, not monthly
|
|
Web content
|
45,000+
|
Unique
visitors to OurAuckland webpages monthly
|
|
Tablet /
mobile app
|
2,544
|
Downloads
since December 2013
|
|
Facebook
content / reminders
|
8,900
|
Number of
Facebook followers receiving average of 5 posts per month
|
|
Twitter
content/reminders
|
10,591
|
Number of
Twitter followers receiving average of 5 posts per month
|
|
A5 to
household letterboxes
|
478,464
|
Average
Auckland household has 2.97 people (Census 2013), so potential reach is
approximately 1.421 million.
|
Consideration
Local
Board Views
1. The options
presented above have the potential to impact local board communications by
reducing or eliminating content tailored to individual local board communities.
Māori
Impact Statement
2. The OurAuckland
continuous improvement program includes engaging with Māori readers to ensure that content and
formats are relevant.
General
3. None.
Implementation
Issues
4. None.
Attachments
There are no
attachments for this report.
Signatories
|
Authors
|
Sophie Bostwick - Manager Brand and Communications
Channel
|
|
Authorisers
|
Wilma Falconer - Communications and Public Affairs
Interim Director
Andrew McKenzie - Chief Finance Officer
|
