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Upper Harbour
Local Board
15 July 2021
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Expression
of interest for management of Albany Community Hub - Te Pokapū
ā-Hapori o Ōkahukura
File No.: CP2021/09933
Te take mō te pūrongo
Purpose of the report
1. To
approve the expression of interest process for the future management and
operations of Albany Community Hub - Te Pokapū ā-Hapori o
Ōkahukura.
Whakarāpopototanga matua
Executive summary
2. The
Albany Community Hub - Te Pokapū ā-Hapori o Ōkahukura at 575A
Albany Highway, Albany, has been operating as a venue for hire during the 2021
financial year to enable Emergency Budget saving requirements.
3. The
local board requested staff present options on future community management of
the venue in the context of the Recovery Budget.
4. Staff have reviewed the options available for management and in the
context of the new Recovery Budget, recommend splitting management of the hub
into ‘Activations and Programming’ and ‘Access’.
5. Staff recommend conducting an expression of interest process
inviting community organisations to propose a management model that would allow
them to deliver activations and
programming at the hub only, while Auckland Council continues to manage access
to the hub and retains revenue from the venue.
Ngā tūtohunga
Recommendation/s
That the Upper Harbour Local
Board:
a) approve
Option 2 for a mixed management model at the Albany Community Hub - Te
Pokapū ā-Hapori o Ōkahukura as follows:
i) community
management of activation and programming for $68,192 per annum for an initial
term of three years
ii) council management of
access to the venue with related revenue remaining with Auckland Council.
b) request
that staff progress with an expression of interest process based on the previously
approved focused areas (as set out in Table 1 of the agenda report) for the
community management of activation and programming of the Albany Community Hub
- Te Pokapū ā-Hapori o Ōkahukura, subject to the following
variations:
i) the focus areas to
not limit management opportunities to ‘local’ groups but to look
Auckland-wide for groups that deliver outcomes for the Upper Harbour community.
Horopaki
Context
Albany Community Hub - Te Pokapū
ā-Hapori o Ōkahukura
6. The
2014 Upper Harbour Local Board Plan set out a priority to establish an Albany
Community Hub: a local, multi-functional community facility.
7. Construction
of the facility was completed and the hub opened in 2017 under the management
of Auckland Council. The hub is located next to the Albany Community House
which was, at the time, managed by the Albany Community
Coordinator.
8. In 2018, the operational management of the Albany Community
House and the hub were combined to create one operational venue currently under
the management of Auckland Council.
Governance and management discussions
9. In
2015, the local board opted for a community-led governance and
management model for the hub, with the community group to be chosen through an
expression of interest (EOI) process (resolution number UH/2015/16). However, a
suitable community group was not identified.
10. In 2017, the local board resolved (resolution number UH/2017/4) that
the hub be managed by Auckland Council for an initial establishment period
until July 2018 when an EOI process would commence to transition the hub to
community-led management from December 2018.
11. During 2017/2018, staff recommended that the operational management
of the Albany Community House and the Albany Community Hub buildings at 575A
Albany Highway, Albany, be combined to create one operational site. This was in
response to the lease for the Albany House with the Albany Community
Coordinator expiring in April 2018 and their request to hand over the
management of the house to Auckland Council.
12. In October 2018, the local board resolved to find a suitable
community group by 1 July 2019 (resolution number UH/2018/127) to transfer the
Albany Community Hub (and the Headquarters Building with the Sunderland Lounge)
from council to community management.
13. The local board approved the following focus areas for the
EOI selection:
Table 1: Focus areas for initial community management EOI
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Service levels
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Local
board focus areas
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Access
To provide fair, easy and
affordable access to a safe and welcoming venue. Access is the provision of a
booking service and the management of a facility to enable communities to use
the space they need for their activities.
Activation
Enable and co-ordinate a
wide range of activities that cater to the diversity of your local community.
Access allows for access with considered curation and coordination of
facility activation ensuring there is a wide range of activities meeting the
wider community needs and interests. This service level requires some staffed
hours to provide that personal customer interaction and service.
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The community facilities
become, or is seen as, the heart of the community, managed by a local community
organisation.
The community facilities
are inclusive spaces that are used by the diverse and changing community and
is not identified as belonging to a select group.
A community facility where
placemaking, events and other community empowering activities can happen in
and around the community facilities even if delivered through partnerships
and other external relationships.
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14. In
May 2019, the local board approved Hobsonville Community Trust
as the service provider for community centre management of the Headquarters
Building with the Sunderland Lounge at Hobsonville Point for a term of three
years, for $164,000 per annum (resolution number UH/2019/1).
15. At the same time, a local community organisation was not identified
in the Albany area that had capability and capacity to take on the operational
governance and management of the hub.
16. Staff advised the local board that they would support community
organisations to build capacity and capability before another EOI process could
be run in three to five years, and that management of the hub should remain
with council.
Emergency Budget
17. In 2020/2021,
the Emergency Budget contained reductions to asset-based services (ABS)
operational budgets for Community Places delivery. There were two elements to
this proposal:
· level
of service changes linked to council staffing reduction
· reduction
in programming budget.
2020/2021 work programme advice
18. At the
2020/2021 work programme development workshop on 30 July 2020, the local board
were advised of a possible reduction to the level of service in the Albany
Community Hub linked to staffing reduction.
19. A memo dated
21 July 2020 was presented to the local board outlining the following
recommended approach to manage these reductions:
· Option
2 - that Albany Community Hub - Te Pokapū ā-Hapori o Ōkahukura
operates as a venue for hire with programming.
20. This option
enabled the required Emergency Budget savings ($47,000 per annum), ensured
service and programmes to the community are maintained, is cost-effective, and
aligns to decisions of the local board and organisational goals.
21. The local
board resolved (resolution number UH/2020/87) that the scope and activities of
‘Albany placemaking and neighbourhood engagement’ (work programme
ID1035) include a specific focus on:
· supporting
an EOI process for a community organisation to run the Albany Community Hub
· supporting
wider community-led development in Albany through community-led management of
the Albany Community Hub
· reiterating
its support for the long-term management of the Albany Community Hub by a
community partner.
22. Staff
have worked to progress the above direction and have provided
the following recommendations to the local board:
· funding
for success to ensure that any community organisations are funding in a
sustainable manner that allows for delivery and growth, reduces the focus on
revenue generation and allows for safe and sustainable staffing levels
· under
Option 3, conducting a request for proposal rather than an EOI, allowing
organisations to present their own sustainable funding models to council
· any
Community Centre Management Agreement entered into for community-led management
would be 3-5 years.
23. The local board requested staff come back with additional, reduced
funding options. It was while developing these options and seeking clear advice
for ABS / locally driven initiatives (LDI) operational implications for the
local board in 2021/2022 onward that the financial implications of the Recovery
Budget became apparent to operational staff.
Tātaritanga me ngā
tohutohu
Analysis and advice
Recovery Budget
24. The Recovery Budget will see the reinstatement of the ABS
operational budget that had been taken for savings in the Emergency Budget in
2020/2021, meaning an additional $47,192 per annum will be available to the
local board in 2021/2022 onwards. This is on top of the $21,000 that remained
during the Emergency Budget for programming only.
Table 2: Staffing budget for the hub
FY2022 – FY2025
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Sum of 2022
budget
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Sum of 2023
budget
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Sum of 2024
budget
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Sum of 2025
budget
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$47,192.25
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$47,900.13
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$48,666.54
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$49,542.53
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25. In the past, when
transitioning venues to community management, the revenue lost to council has
been offset by over-recovery of revenue across the portfolio. However, the
impacts of COVID-19 and Auckland Council’s Emergency and Recovery Budgets
have meant that this is no longer possible.
26. As a result, an additional $102,616 (2022 financial year budgeted
revenue) per annum will need to be found.
Table 3: Projected revenue budget for the hub FY2022
– FY2025
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Sum of 2022
budget
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Sum of 2023
budget
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Sum of 2024
budget
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Sum of 2025
budget
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- $102,616.00
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- $105,186.48
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- $107,395.91
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- $109,759.46
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27. If the local board
wish to progress with Option 3 full community management, the only ABS funding
that will be available to any community organisation wishing to run the hub
will be the revenue stream of $102,616 per annum. The current staffing and
programming budgets would be used to offset the revenue loss to Auckland
Council’s bottom line.
28. If the access / booking function and revenue was to stay in Auckland
Council management, this would allow the existing staffing and programming
budget to be used to contract a community provider to deliver services from the
hub.
29. The following options were tabled for discussion with staff
at a workshop on 22 April 2021 allowing for a range of responses to the
Recovery Budget context. Table 4 below shows the options discussed with the
board:
Table 4: Options for responses to the Recovery Budget
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Options
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Options 1
Status quo
Full council
management
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Option 2
(staff recommended option)
Mixed
management
Community
management of activation and programming
Council
management of access
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Option 3
Full community
management
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Description
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Access
Operations,
revenue and liabilities stay with council until operational stability returns
post-COVID-19
Presence and
activation
Managed by
Auckland Council
Programming
Delivered
locally and includes regionally supported programmes – Proud Centres,
Diwali etc
Placemaking
Remains with
council
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Access
Operations,
revenue and liabilities stay with council until operational stability returns
post-COVID-19
Presence,
activation and programming
Conduct an EOI
to find an appropriate group to:
· staff the hub
· deliver programmes
· exclusive use of the onsite office
· ability to leverage activities through fully
subsidised use of venue
Placemaking
Remains with
council
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Access,
presence, activation and programming
Contracted to a
community organisation
Placemaking
Could be
included in the contract
Conduct a
request for proposal to find an appropriate group and assess current
operating costs
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Process
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No additional
process required
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Expression
of interest:
Staff will
advertise for a community organisation who wish to deliver set outcomes for a
set amount
Staff recommend
conducting an EOI process as:
· there will be a set amount for delivery
· clear delivery requirements and measures
commensurate with the funding available
· few operational requirements and associated
costs as Auckland Council will be responsible for access and management of
the building
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Request for
proposal:
Staff will
invite community organisations to submit a proposal on how they would manage
the hub and what resources they would require and how they would manage the
revenue and finances.
If the local
board wishes to progress with Option 3, staff recommend a request for
proposal:
· council does not have any ‘revenue
only’ agreements in place at the moment
· groups will have operational requirements
and costs to meet as they will have to manage the building, utilities and the
booking process
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Risks and
benefits
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Council
management does not support the local board’s vision for the hub in the
short term
Very low risk
for delivery as council has systems and processes in place to manage bookings
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Supports the
local board’s vision for the hub
Very low risk
for delivery, as any community organisation will not be required to manage
bookings
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High risk to
delivery as managing bookings requires a large operation / management
overhead and a community organisation may not have the resources to manage
cancellations and refunds and no revenue for these periods
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Financial
implications
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Revenue remains
with council
$47,192 ABS returns for staffing
$21,000 ABS available to support programming
$17,802 remains
available as contingency for all community places
$50,000 remains
available for responsive and diverse placemaking activities
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Revenue remains
with council
$68,192 ABS made available for contract
($47,192
staffing + $21,000 programming)
$17,802 remains
available as contingency for all community places
$50,000 remains
available for responsive and diverse placemaking activities
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-$102,616 projected revenue stream transferred to a
community entity
Current ABS
operational budgets of $68,192 used to offset lost revenue
($47,192
staffing + $21,000 programming)
Current
operating costs above this may be identified by a community organisation and
require additional LDI investment
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30. Based on the
above table, staff recommend that the local board proceed with Option 2.
31. Staff also
recommend a variation to the previously adopted focus areas (Table 1), that the
requirement for a ‘local’ group be removed, allowing for any
expression of interest or request for proposal be conducted Auckland-wide to
increase the likelihood of finding an group with the capacity and capability to
manage the hub.
Tauākī whakaaweawe
āhuarangi
Climate impact statement
32. Local
community services and venues create a stronger sense of place and foster
localism and place-based approaches. This has a positive impact on resilience
to climate change and does not increase greenhouse gas emissions.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
33. The Connected
Communities department is responsible for the ongoing management and oversight
of service from this venue and will manage the request for proposal process.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
34. Staff
workshopped the options outlined in the report with the local board in April
2021 and the board continue to show support for community management of the
hub.
35. While staff
continue to recommend Option 2 and for access and the revenue to remain at
Auckland Council, the local board have expressed support for Option 3.
36. If the local
board wish to progress with Option 3, staff can operationalise this in the same
timeframe as given below.
Tauākī whakaaweawe
Māori
Māori impact statement
37. While the
Albany Community Hub and its services and programmes are specifically targeted
to Māori populations, the venue enables locally responsive activities
promoting participation, inclusion, and connection for all Aucklanders, including
Māori.
Ngā ritenga
ā-pūtea
Financial implications
38. If
the local board directs staff to progress with Option
2, staff will prepare a contract for service and make the ABS funds of $68,192
available to the successful operator. All revenue would remain with council as
projected.
39. If
the local board directs staff to continue with Option 3
(full community management of the Albany Community Hub), staff can do so based
on the following assumptions:
· The revenue stream will be made available to the operator - this
will be the only ABS funding available (financial year 2022 value of
$102, 616 per annum of ABS opex – this is not guaranteed but an
anticipated dollar amount). In any request for proposal, staff will make it
explicit that this is the projected revenue available and not a guaranteed
amount.
· The operator will be responsible for funding staffing, programming
and other operating costs, including utilities, cleaning and minor maintenance.
· Via a procurement process, staff will request proposals from
suitable organisations and ask them to provide a detailed outline of their
estimated costs to deliver the expected service. Staff will follow up to
understand and verify their proposed costs of operation.
· If the costs of operation fall within the projected $102,616 revenue
return, the venture will be viable to proceed within the available ABS funding.
· If the proposed costs of operation exceed the available $102,616,
the local board can then decide whether to underwrite the additional costs from
LDI to the operator and if so, for what timeframe.
· If the projected revenue costs are not met due to COVID-19 lockdowns
or other factors, the operator may seek additional LDI funding from the local
board.
· The local board is not expected to allocate additional LDI to
Auckland Council for loss of revenue.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
40. There
has not previously been a local community organisation identified in the Albany
area that had capability and capacity to take on the operational governance and
management of the hub.
41. By
removing the requirement for the expression of interest process to focus solely
on local groups, staff believe that there may be an existing group in the wider
community that will have the capacity and capability to take on management of
the hub.
42. If the local board pursues Option 3, there are risks for any
potential community partner organisation as any funds to support operations are
tied to management of bookings and this revenue stream could be impacted by
additional COVID-19 lockdowns. There is also a risk that the organisations
could have a focus solely on booking the venue and not the activation and
programming which provides the highest impact for the community. For these
reasons, staff continue to recommend Option 2 during the Recovery Budget.
Ngā koringa ā-muri
Next steps
43. If the board
agrees to pursue an EOI for the future management and operations of Albany
Community Hub - Te Pokapū ā-Hapori o Ōkahukura, staff will progress
and report back findings in November 2021.
Table 5: Timeline for EOI for Albany Community Hub - Te
Pokapū ā-Hapori o Ōkahukura
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When
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Action
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July
2021
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· Local
board direct staff to conduct an EOI process
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August
2021
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· Open
formal EOI process (3-4 weeks)
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September/October
2021
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· Assess applications
· Additional due diligence if required
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November
2021
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· Staff
report back on finding and seeks formal approval for contract for service
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January 2022 onward
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· Transition begins from council management to community
management
· Council continues to support in transition and
establishment of new management
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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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Mirla Edmundson - General Manager Connected
Communities
Lesley Jenkins - Local Area Manager
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