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Upper Harbour
Local Board
18 June 2020
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Arts,
Community and Events venue partners interim service approach
File No.: CP2020/07981
Te take mō te
pūrongo
Purpose of the report
1. To
approve an interim service approach for Arts, Community and Events venue
partners for 1 July 2020 to 30 September 2020.
Whakarāpopototanga matua
Executive summary
2. More
than half of the Arts, Community and Events (ACE) venues portfolio is managed
by 122 partners.
3. Fifty-five
of these partners (including one of the two Upper Harbour partners) have contracts
and funding agreements that expire on 30 June 2020.
4. Key
concerns for these partners are:
· the
council’s expectation of service delivery from 1 July 2020
· levels
of activity they should be delivering
· funding
availability
· their
responsibilities as employers.
5. The
recommended approach is, firstly, a clarification that services should continue
from 1 July 2020 to 30 September 2020.
6. Secondly,
it is to ensure a sustained level of service from the ACE venues portfolio
while Emergency Budget deliberation is underway.
7. Finally,
it is to provide a pro rata interim payment (12 weeks of the annual amount)
covering the first quarter of the financial year (FY) 2020/2021 to ensure the
above can be delivered.
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Ngā tūtohunga
Recommendation/s
That the Upper Harbour Local
Board:
a) approve
interim payments be made to:
i) Meadowood
Community House for $13,738 plus Consumer Price Index (CPI).
b) note
the proposed interim payments to:
i) Headquarters
and Sunderland Lounge for $41,000 plus Consumer Price Index (CPI).
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Horopaki
Context
8. Auckland
Council provides spaces in the community where all Aucklanders can come
together to do things that interest them, stretch themselves, have fun,
participate, connect, interact, discover new things and learn about each other.
9. There
is an Arts, Community and Events (ACE) venue in almost every neighbourhood
across Auckland, and the ACE team ensures this diverse portfolio –
including community centres, community art galleries, theatres and both rural
and urban community halls – is delivering for local communities.
10. This
portfolio contains more than 240 ACE venues with 122 partners managing over
half of these on behalf of the council.
11. These
partnerships are managed with a variety of contracts and agreements in place
and funding of over $8m per annum, in addition to in-kind support and
resources, including asset provision.
12. To help
protect Aucklanders during the COVID-19 response, Auckland Council made the
decision to temporarily close the ACE venues, including community centres,
community art galleries, theatres and venues for hire, and to support its
partners to do the same.
Partner insights
13. Staff have
continued to be in close contact with ACE venue partners through all alert
levels to answer queries where possible and offer support to their
decision-making where appropriate, including:
· varying
contracts to explicitly relieve them of responsibilities under their contracts
and funding agreements, as they could not deliver their service under alert
levels four or three
· prioritising
final contract payments due in quarters three and four of the current financial
year
· supporting
the reopening of venues at alert level two, including implications of group and
capacity restrictions.
14. Staff
surveyed ACE venue partners during this time to gather insights on the impacts
of COVID-19. Key considerations for partners were:
· financial
security, including uncertainty of funding that might be available in FY
2020/2021
· concern
about their ability to continue to pay staff and deliver expected services and
programmes to their local communities.
15. Fifty-five of
these 122 partners have contracts and funding agreements that expire on
30 June 2020.
16. From survey
results and subsequent conversations with partners, the key concerns are as
follows:
· Are
they expected to open and deliver services from 1 July 2020?
· What
level of service should they be delivering?
· What
funding is available for them to continue to deliver services?
· Concerns
regarding their responsibilities as employers.
17. While ACE
venue partners are aware that the Emergency Budget consultation and
deliberation is underway, a number have notified staff that without an
arrangement, they may have to suspend services until the Emergency Budget is
adopted and implemented in August 2020.
18. Staff are
also aware of concerns raised by local board members and these were discussed
in workshops when ACE staff visited local boards to discuss facility reopening
plans over the last month.
Tātaritanga me ngā
tohutohu
Analysis and advice
Interim service delivery support
19. The
recommended approach is to clarify that services should continue from 1 July
2020 to 30 September 2020, ensuring a sustained level of service from the ACE
venues portfolio while Emergency Budget deliberation is happening.
20. In
consultation with Auckland Council’s Commercial and Finance and Legal
departments, staff have determined that the best approach to both sustain
service and to address the level of uncertainty that exists with ACE venue
partners is to provide interim funding covering the first quarter of FY
2020/2021.
21. To do this
will require a pro rata interim payment (12 weeks of the annual amount).
22. Interim
funding will enable ACE venue partners to operate throughout July, August and
September 2020. In August 2020, after local boards approve their work
programmes, staff will make contract/grant payments for the balance of approved
funding to partners for the remaining quarters of FY 2020/2021.
23. For the Upper
Harbour Local Board area, the partnership under consideration is:
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ACE venue
partner
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Interim
payment
amount
+CPI
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Annual
contract amount
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Funding
mechanism
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Expiry
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Budget source
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Key
relationship holder
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Meadowood
Community House
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$13,738
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$54,953
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FA*
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FY20
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ABS opex
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Community Places
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24. The
following partnership agreement for the Upper Harbour Local Board area is
supported by multi-year agreement that is in train. Staff are working closely
with these partners to arrange interim quarterly payments:
|
ACE venue
partner
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Interim
payment
amount
+CPI
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Annual
contract amount
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Funding
mechanism
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Expiry
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Budget source
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Key
relationship holder
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Headquarters
and
Sunderland Lounge
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$41,000
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$164,000
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CCMA**
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FY22
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ABS opex
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Community Places
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*FA – Funding agreement
**CCMA
– Community Centre Management Contract
***SA
- Service Agreement
25. Staff are
aware of the concerns this uncertainty is causing ACE venue partners and have
advised them in writing that this approach will be brought to local boards as
governors of local facilities and locally funded services.
26. This approach
requires a commitment to advance funding for the first quarter of FY 2020/2021
ahead of the Emergency Budget approval and decisions to finalise local board
work programmes for FY 2020/2021.
27. Options for
consideration by the board are set out in the following table:
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Option
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Option one
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Option two
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Recommended
approach –
Option three
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Description
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Defer funding
decision until the Emergency Budget is confirmed
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Allocate
interim partial payment
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Allocate full
pro rata 12 weeks payment
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Action
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No interim
payment is made
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A payment of
less than pro rata amount is made at a later date
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An interim
payment can be made early July
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Implications
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· Possible suspension of services
· Risk of these partners not being able to
reopen
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· Negotiations on level of service and new key
performance indicators would need to be entered into for the first quarter
· New contracts generated and agreed
· Neither Auckland Council nor ACE venue
partners have resources or time to manage this
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· Service is sustained at current level
– doors remain open
· The impact of different funding scenarios
can then be workshopped with board and partners as the Emergency Budget is
considered
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Tauākī whakaaweawe
āhuarangi
Climate impact statement
28. ACE venues can have a positive climate impact as they enable people
to connect, participate and recreate locally without having to travel long
distances. They help foster a sense of community and contribute positively to
people’s views of where they live.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
29. Auckland
Council provides fair, easy and affordable access to safe and welcoming venues
through the Arts, Community and Events department of the Customer and Community
Directorate.
30. The Community
Places and Arts and Culture units manage the relationship and contracts with
ACE venue partners.
31. Subject to
the outcome of this decision, staff will work with Community Facilities to
manage implications for council-owned assets.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
32. A number of
local board workshops were conducted through May and early June 2020 on the
Auckland Council approach to COVID-19 alert level two and the phased reopening
of local community facilities.
33. During these
workshops, local boards:
· were
informed that the majority of ACE venue partners reopened promptly at alert
level two
· expressed
an interest in the status of ACE venue partner delivery and FY2020/2021 funding
· considered
additional funds due to marked loss in revenue from classes and bookings.
Tauākī whakaaweawe
Māori
Māori impact statement
34. ACE venues support diverse, equitable, and affordable access to spaces
to all Aucklanders, including Māori.
35. Programming
through ACE venues supports Māori outcomes and showcases work from
Māori content creators and artists.
Ngā ritenga
ā-pūtea
Financial implications
36. This approach
requires a total commitment of $177,738 from the Upper Harbour Local
Board’s asset-based services operational expenditure funding in advance
of the Emergency Budget approval and decisions to finalise local board work
programmes for FY2020/2021.
37. The amount of
$13,738 represents an interim payment to the partner with a funding agreement
that expires on 30 June 2020.
38. The total
annual amount of $164,000 is for the in-train agreements for the other partner.
39. This total
amount will not be available for reallocation in future FY 2020/2021 decision
making.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
40. Risks
associated with this decision and mitigations are:
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Risk
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Mitigation
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A decision
could preempt significant budgetary decisions
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This is an
interim approach, consistent with the council’s managed provision in
this portfolio
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The
recommended approach may not provide sufficient surety for partners
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Staff will
communicate with partners and inform them of the Emergency Budget
consultation process
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Ngā koringa ā-muri
Next steps
41. Subject to
local board approval, staff will organise agreements and payments to partners
no later than mid-July 2020.
42. Staff will
continue to work with these partners to assess the impact of different funding
scenarios, if any, to funding levels, service delivery, outcome areas, or key
performance indicators for the remainder of FY2020/2021. This will inform
discussions on local board work programmes once the Emergency Budget has been
approved.
Ngā tāpirihanga
Attachments
There are no attachments for
this report.
Ngā kaihaina
Signatories
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Author
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Kat Teirney - Team Leader Community Facilities, South
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Authorisers
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Graham Bodman - General Manager Arts, Community and
Events
Eric Perry - Relationship Manager
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