I hereby give notice that an ordinary meeting of the Ōtara-Papatoetoe Local Board will be held on:

 

Date:

Time:

Meeting Room:

Venue:

 

Tuesday, 16 June 2020

5.00pm

This meeting will proceed via Skype for Business. Either a recording or written summary will be uploaded on the Auckland Council website

 

Ōtara-Papatoetoe Local Board

 

OPEN ADDENDUM AGENDA

 

 

 

 

MEMBERSHIP

 

Chairperson

Lotu Fuli

 

Deputy Chairperson

Dr Ashraf Choudhary, QSO, JP

 

Members

Apulu Reece Autagavaia

 

 

Dr Ofa Dewes

 

 

Swanie Nelson

 

 

Ross Robertson, QSO, JP

 

 

Dawn Trenberth

 

 

(Quorum 4 members)

 

 

 

Carol McGarry

Democracy Advisor Otara-Papatoetoe

 

11 June 2020

 

Contact Telephone:  +64 27 591 5024

Email: carol.mcgarry@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 

 

 


Ōtara-Papatoetoe Local Board

16 June 2020

 

 

ITEM   TABLE OF CONTENTS                                                                                         PAGE

    

27        Local board resolution responses and information report - Local Board input into the Emergency Budget 2020/2021                                                                               5

28        Ōtara-Papatoetoe Local Board Business Associations                                          23 

 

      


Ōtara-Papatoetoe Local Board

16 June 2020

 

 

Local board resolution responses and information report - Local Board input into the Emergency Budget 2020/2021

 

File No.: CP2020/06292

 

  

 

Te take mō te pūrongo / Purpose of the report

1.       This report provides a summary of resolution responses and information reports for circulation to the Ōtara-Papatoetoe Local Board.

Information reports for the local board:

2.       The board provided feedback on what amount of savings the Otara-Papatoetoe Local Board could achieve within its discretionary budgets, what service level reductions may be acceptable and the right balance of the four levers of savings proposed for the 2020/2021 financial year.  A copy of the report and attachments are Attachment A.  The boards feedback is Attachment B.

 

Ngā tūtohunga / Recommendation/sThat the Ōtara-Papatoetoe Local Board:

a)      note the feedback to the Finance and Performance Committee on what amount of savings the Otara-Papatoetoe Local Board could achieve within its discretionary budgets, what service level reductions may be acceptable and the right balance of the four levers of savings proposed for the 2020/2021 financial year. Attachment B.

 

Ngā tāpirihanga / Attachments

No.

Title

Page

a

Emergency Budget 2020/2021 - Confidential report and Attachments

7

b

Otara-Papatoetoe Local Board feedback to the Emergency Budget 2020/2021

19

      

Ngā kaihaina / Signatories

Author

Carol McGarry - Democracy Advisor Otara-Papatoetoe

Authorisers

Victoria Villaraza - Relationship Manager, Mangere-Otahuhu and Otara-Papatoetoe Local Boards

 


Ōtara-Papatoetoe Local Board

16 June 2020

 

 


 


 


 


 


 


 


 


 


 


 


 


Ōtara-Papatoetoe Local Board

16 June 2020

 

 


 


 


Ōtara-Papatoetoe Local Board

16 June 2020

 

 

Ōtara-Papatoetoe Local Board Business Associations

File No.: CP2020/07874

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To amend the 2019/2020 Ōtara-Papatoetoe Local Board Work Programme Line #123 and confirm direction on the allocated funding for this item.

Whakarāpopototanga matua

Executive summary

2.       The Ōtara-Papatoetoe Local Board allocated $240,000 in their 2019/2020 Work Programme (OP/2019/83), to support three local business associations to contribute to clean, safe and attractive town centres (Line #123). These local business associations are the Ōtara Business Association, Hunters Corner Town Centre and the Papatoetoe Central Mainstreet Society Incorporated.

3.       On 11 February 2020, the local board received verbal presentations from these organisations on outcomes they achieved so far in 2019/2020 and on ideas for future initiatives and plans for 2020/2021.

4.       The presentation by the Ōtara Business Association and the Papatoetoe Central Mainstreet Society Incorporated highlighted the need for both organisations to improve their operational and governance functions. There was also unsatisfactory accountability reporting for funding received in 2018/2019.

5.       Based on this, staff originally proposed funding of:

·    $80,000 to Hunters Corner Town Centre (full funding)

·    $25,000 to Ōtara Business Association

·    $25,000 to Papatoetoe Central Mainstreet Society

6.       The funding for both Ōtara Business Association and the Papatoetoe Central Mainstreet Society Incorporated ($50,000 total) are proposed to be carry-forward to the next financial year, and used to fund a town centre post COVID-19 economic recovery plan in collaboration with council staff, the business associations, and local businesses.  

7.       Staff recommend the unspent funding ($110,000) would be returned to savings.

8.       Due to council budget restrictions following COVID-19 this carry forward will be subject to the carry forward and expenditure guidelines.

 

Ngā tūtohunga

Recommendation/s

That the Ōtara-Papatoetoe Local Board:

a)      amend the 2019/2020 Ōtara-Papatoetoe Local Board Work Programme Line #123 to no longer allocate funding to the Ōtara Business Association and the Papatoetoe Central Mainstreet Society Incorporated.

b)      approve $50,000 to engage a third party to co-design a post-COVID-19 economic development recovery plan in collaboration with council staff, the business associations, and local businesses and request these funds to be carried forward.

c)      approve the remaining $110,000 to be returned to savings in financial year 2019/2020.

 

Horopaki

Context

9.       In June 2019, the local board resolved to support town centre development and initiatives as part of the 2019/2020 Arts, Culture and Events work programme, line #123, with a budget of $240,000.

10.     The specified business association partners for this work programme are:

·   Ōtara Business Association Incorporated

·   Hunters Corner Town Centre Society Incorporated

·   Papatoetoe Central Mainstreet Society Incorporated.

 

11.     On 11 February 2020, the local board received verbal presentations from the Ōtara Business Association, Hunters Corner Town Centre and the Papatoetoe Central Mainstreet Society Incorporated on outcomes they achieved in 2019/2020 and future initiatives and plans for the 2020/2021 financial year. 

12.     The presentations by the Ōtara Business Association and the Papatoetoe Central Mainstreet Society Incorporated highlighted the need for both organisations to improve their operational and governance functions and there was low alignment with the Business Improvement Development (BID) policy at the time of the presentations. 

13.     A funding agreement for $80,000 was completed for the Hunters Corner Town Centre as all BID criteria was met and there were robust operational, management and governance systems evident.

14.     A report to the local board on 19 May 2020 confirmed that both Ōtara Business Association and Papatoetoe Central Mainstreet business association were now compliant with BID policy, however there were ongoing concerns about their operations and governance, and with their inability to provide accountability reports in 2018/2019.

Tātaritanga me ngā tohutohu

Analysis and advice

15.     Staff considered the following criteria when assessing the funding contributions:

Criteria for

a)   Compliance with Auckland BID Policy 2016

The business association must be fully compliant with the Auckland Business Improvement District (BID) Policy 2016. This includes meeting all the requirements of the BID Policy in terms of operational management and governance and the requirements of the Incorporated Societies Act. This is an encompassing policy that outlines matters such as Annual General Meeting, membership and reporting requirements.

The Auckland Council BID Team is responsible for ensuring individual associations are fully compliant with the BID Policy. Compliance with the BID Policy is an indicator of how the business association is functioning.

b)   Accountability for previous funding

The business association must provide full accountability reporting for any previous council funding received. It must be clear how the funds were applied and the outcomes/impact of the funded initiatives.  

Accountability reporting includes financial reporting, recognising the impact of the activity, and reflecting on opportunities for enhancement for future initiatives.

c) Quality of proposal

Proposed initiatives should:

·    be clear about intended initiatives and outcomes

·    align to local board plan outcomes and community aspirations

·    reflect the definition of ‘safety’ agreed by the Local Board in April 2019 i.e. safety is about building strong, cohesive, vibrant and participatory communities. Safety initiatives can include community events, activations and placemaking activities that welcome locals and visitors; and

·    be future-focused and relevant to the town centre needs and development potential.

b)   Community feedback

Consideration of any other context, information or feedback from the local community, including business association members. Local Boards partner with business associations on placemaking and other community initiatives only when they are well connected to the local community and contributing positively to community outcomes. This may be information that local board or staff members are aware of, or feedback from those interacting with the association. Care is taken to use professional judgement in the importance, or impact, of the knowledge in decision-making. 

 

16.     Following presentations from all three business associations in February 2020, and subsequent workshops, staff made the following analysis:

 

Business Association

Compliance with Auckland BID Policy 2016

Accountability for previous funding

Quality of proposal

Community feedback

Hunters Corner Town Centre Society Incorporated

 

ü

ü

ü

ü

Ōtara Business Association Incorporated

 

ü

Initial Concerns resolved

û

Unclear for 2018/2019

û

Proposal requires more alignment to local board outcomes

û

Requires better engagement in the community and currently has limited evidence of community support and participation

Papatoetoe Central Mainstreet Society Incorporated

 

ü

Initial Concerns resolved

û

Unclear for 2018/2019

û

Proposal against local board outcomes needs strengthening

û

Requires better engagement with its members and has limited evidence of community support and participation

 

17.     Papatoetoe Central Mainstreet Society (PCMS) and Ōtara Business Association Incorporated (OBA) have the same town centre manager.

18.     PCMS presented to the local board and included their car promotion and efforts to connect with all business association members.

19.     The OBA presentation focused on safety in the town centre with CCTV, using ambassadors, and security patrols. Events supported in 2018/2019 included Matariki, White Sunday, Christmas in the Carpark and a senior citizens Christmas party.

20.     Several comments were noted about these two organisations:

·      That OBA had significant financial reserves.

·      The 2019 accounts revealed a large percentage of funds was spent on salaries.

·      OBA received revenue from the BID targeted rate in 2018/2019 and grant funding from a variety of sources.

·      Accountability reporting needed to improve.

·      Funding for the annual Diversity Festival was of concern.

·      As of February 2020, the Ōtara Business Association Incorporated had been struck off the Incorporated Societies register as the appropriate financial reporting was not submitted.

·      OBA have re-registered with the Incorporated Societies but note that financial reporting requires improvement.

·      PCMS had significant reserves according to its year end 30 June 2019 financial accounts filed with the Incorporated Societies.

·      Concerns from the community on the management and governance of the association.

·      There needs to be stronger alignment to the local board outcomes.

21.     There is a significant risk associated with allocating funding to the organisations with identified governance and operational concerns as their projects may not be completed.

22.     To respond to these concerns, staff have developed a proposal to engage a third party to co-design post-COVID-19 economic development recovery plan in collaboration with the business associations, local businesses council staff.

23.     Staff propose carrying forward $50,000 of the unspent funding ($25,000 for each organisation) to fund this recovery plan in 2020/2021.

24.     Due to council budget restrictions following COVID-19, carry forward will have to meet specific criteria. Staff have sought advice and believe the scenario described would meet an exception as per the carry forward and expenditure guidelines.

25.     Remaining unspent funding (totaling $110,000) will be returned as savings to the organization.

Tauākī whakaaweawe āhuarangi

Climate impact statement

26.     The business associations align with the criteria and use recycling and environmentally appropriate waste systems. This will have a positive impact on climate change.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

27.     The Auckland Council Emergency Budget has impacted the process of carrying forward unspent budget, which has been taken into consideration.

28.     Advice in this report has been collated by staff from council’s Community Empowerment Unit, Local Board Services and the Business Improvement District Programme.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

29.     Feedback received from the local board have informed the recommendations.

30.     The business association’s initiatives are intended to contribute to the local board plan outcomes of:

·   Manukau transformation

·   Revitalising town centres

·   Parks and facilities that meet people’s needs

·   Healthy natural environment

·   Empowered, inclusive and prosperous communities

·   Honouring youth and seniors

·   It’s easy to get around.

Tauākī whakaaweawe Māori

Māori impact statement

31.     Māori make up 16 per cent of the local board population, which is higher than the Auckland average by six per cent.

32.     Māori often suffer disproportionately lower socio-economic statuses compared to other ethnicities and will benefit from an increase in town centre development and economic stimulation, creating job and business opportunities.

Ngā ritenga ā-pūtea

Financial implications

33.     Both the Ōtara Business Association and the Papatoetoe Central Mainstreet Society Incorporated show high reserves in their current financial statements. This has informed staff’s recommendation to not allocate any funding to either organsiation with low associated risk.

34.     Due to COVID-19, financial processes and guidelines in council have changed to reduce the risks associated with carry forward budgets.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

35.     There is a high risk that if funding is allocated at the present time, the purpose of the funding will not be delivered due to identified operational and governance issues within the two business organisations.

36.     There is a risk associated with not providing any funding for the two organisations in relation to the proposed projects from each two group no longer going ahead.

37.     There is a minor reputational risk associated with amending the local board work programme. Staff hope to have mitigated this through the above analysis and making this report publicly accessible. 

Ngā koringa ā-muri

Next steps

38.     Staff will send correspondence to the business associations regarding this decision.

39.     Staff will progress an exception to restrictions on carry-forwards.

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.    

Ngā kaihaina

Signatories

Authors

Zella Morrison Community Empowerment Unit Manager Strategic Brokers

Authorisers

Graham Bodman - General Manager Arts, Community and Events

Victoria Villaraza - Relationship Manager, Mangere-Otahuhu and Otara-Papatoetoe Local Boards