4 Council Controlled Organisations - Palmerston North City Council

Council Controlled Organisations
Council Controlled Organisations
Palmerston North City Council Annual Report 2011/12

Council Controlled Organisations
Palmerston North City Council Annual Report 2011/12

Council Controlled Organisations
The Council does some of its work through Council Controlled Organisations (CCOs).
A CCO is any organisation in which the Council owns or controls at least 50 percent of the voting
rights or has the right to appoint at least 50 percent of the directors or trustees. CCOs are mostly
set up to independently manage Council facilities, or deliver specific services and developments
on behalf of local residents.
The Council has four reporting CCOs:
• Caccia Birch Trust Board
• Globe Theatre Trust Board
• Regent Theatre Trust Board
• Te Manawa Museums Trust Board.
A Council Controlled Trading Organisation (CCTO)
is a CCO that is set up to make a profit for the
Council and hence for the ratepayers.
The Council has one CCTO:
• Palmerston North Airport Limited.
CCOs and CCTOs operate at arms length to the
Council. They are run by their Boards, not by the
Council. Each year the Council and the Board
agree on what services that Board will provide.
This agreement is called the Statement of Intent.
The Council then provides funding so that the
Board can implement the Statement of Intent.
The Council works through CCOs and CCTOs
because they bring business and community
expertise that the Council may not be able to
easily access otherwise.
They can also attract funding from sources other
than ratepayers.
All the CCOs (other than the Airport) particularly
contribute to the Council’s goal of making
Palmerston North a socially sustainable city where
people want to live because of its safe and easy
lifestyle and its many social, cultural and leisure
opportunities. They do this by providing a range
of leisure opportunities for both performers and
audiences. They also do this by making the City
more attractive by preserving and promoting its
heritage.
By attracting visitors to Palmerston North they
also contribute to economic development in the
City. Te Manawa, especially, also adds to the City’s
science, education and research base.
Palmerston North Airport Limited contributes
to the Council’s goal of being an economically
sustainable city which attracts, fosters and retains
businesses and jobs to create a prosperous
community.
The Council can exempt small CCOs from the
planning and reporting requirements of the Local
Government Act. These are called exempted
organisations and the Council has three of them:
FreightGate Ltd (associated with the airport) the
Palmerston North Performing Arts Trust Fund, and
the Manawatu-Wanganui Regional Disaster Relief
Fund Trust.
Council Controlled Organisations Overview
Palmerston North City Council Annual Report 2011/12
189

Caccia Birch Trust Board
Council Controlled Organisations Caccia Birch Trust Board
Objectives
Caccia Birch, as a heritage building, is a significant
historical property run for the Council by the Caccia Birch
Trust Board. It operates as a meeting and conference
centre for functions, social events and weddings. This
activity is to help fund the preservation of the building.
Caccia Birch’s restoration and maintenance has been
overseen by the Trust Board since 1992.
What does the Board do?
The Board preserves and protects the Category 1
Historic Caccia Birch Homestead for public use and
future generations. To do this it manages a programme
of internal refurbishment and redecoration agreed with
the Council as landlord to enable asset management
and development.
What does Caccia Birch do?
Caccia Birch provides the local community with a
significant historical property, giving a direct link with
living history.
Key Performance Measures
Target
Maintain category 1 heritage listing.
Actions
This year the Board intended to complete the
development of the Coach House Archive as a local
historical resource which is then to be continually
updated and improved.
The Board will maintain the cycle of internal and external
improvements and refurbishment and the programme
of asset management as outlined in the Council’s asset
management plan.
To help fund this, the Trust Board will:
• continue to develop the conference and
function venue
• develop the customer base to maximise the heritage
value of the facility and community access.
Results
Target met.
Occupancy rate of 68.5% or 250 usage days. Target not met - 67%.
Receive non-Council revenue of at least $110,000. Target not met - $104,200
At least 10 open afternoons free to the public with
400 people attending over the year.
Report the number of community groups using
Caccia Birch House.
Target met - 12 afternoons, with between 30 and
50 attending each; three organised tours; student
groups; numerous private individual visitors.
Two regular groups and several others on an ad-hoc
basis.
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Palmerston North City Council Annual Report 2011/12

Globe Theatre Trust Board
Objectives
The Globe Theatre is a community theatre run for the
Council by the Globe Theatre Trust Board. It controls,
develops, promotes, enhances and maintains the Globe
Theatre so that it may be used and enjoyed by the
people of the Manawatū area.
What does the Board do?
The Board develops, promotes, enhances and maintains
the Globe Theatre so it may be used and enjoyed by
local citizens.
The Theatre provides the primary venue and is the home
for the Manawatu Theatre Society.
What does the Globe Theatre do?
The Theatre offers a professionally equipped, affordable
venue for community-based amateur theatre groups to
hire.
It also offers an intimate performance space in
Palmerston North for professional theatre groups and
other performers to hire.
In doing this the Theatre contributes to the development
of the Cultural Village complex for the Community to
enjoy.
Key Performance Measures
Target
65 performance nights allocated to public
performances and 120 usage nights (pro rata with
six months closure).
80:20 split in usage between community and
commercial groups with between 60% and 80%
community usage.
No more than 50% revenue generated from the
Council’s operating grant.
“Friends of the Globe Theatre” has 150 contact
names, donating at least $10 a month each.
Actions
The Board will develop the customer base:
• To maintain and develop current usage.
• By further examining the promotional and
marketing plan along with technological
developments to assist users to maximise the
hireage experience, e.g. electronic on-site
advertising.
The Board will seek further organisational and business
development by:
• Continuing to examine ways to enhance the
existing performance and customer facilities,
thereby improving the theatre going experience
at the Globe, eg. foyer, café/bar and auditorium
facilities.
• Contributing to the developments at Te Manawa, as
and when possible and appropriate, reflecting the
particular needs of the Globe Theatre.
• Continuing to review and monitor current technical
inventory to prioritise further development.
• Preparing a Strategic Business Plan.
Results
Target met – 154 performance nights, 252 total
usage nights.
Target met – 75:25 split.
Target not met – 54%.
Target not met – still under development.
Note the Statement of Intent assumed theatre closure for six months to allow the theatre re-development. This did not
occur.
Council Controlled Organisations Globe Theatre Trust Board
Palmerston North City Council Annual Report 2011/12
191

Regent Theatre Trust Board
Council Controlled Organisations Regent Theatre Trust Board
Objectives
The Regent Theatre is one of the Council’s major arts
and cultural facilities. It consists of a civic auditorium
and regional centre for the performing arts and is run
for the Council by the Regent Theatre Trust Board.
It develops, promotes, enhances and maintains the
Regent as a venue for live performances, community
events, graduations and the performing arts, attracting
international, national and local performances.
What does the Board do?
The Board operates, develops, enhances and maintains
the Regent on Broadway as a recognised heritage
building and world class 1,400 seat performing arts
venue and civic auditorium to provide the community
with fun things to do.
What does the Regent Theatre
do?
The Theatre will promote and operate the Regent so
it will remain New Zealand’s most vibrant provincial
theatre. In doing this it will contribute to the City’s
attractiveness by providing an exciting and innovative
programme of cultural and community events with
broad appeal.
Key Performance Measures
Target
Not less than 55% annual auditorium hireage
revenue is generated from commercial (noncommunity)
use.
Communitrak Survey for the year will confirm
community satisfaction ratings over 90%.
Annual gross operating revenue will be at least four
times the amount of the Council’s operating grant.
At least 160 live nights for the year in respect of the
theatre’s main auditorium.
At least 40 live nights for the year in respect of
the theatre’s main auditorium at the theatre’s full
commercial hireage rate.
Total attendance numbers for events are at least
100,000 for the year.
At least 10 days use of the theatre’s auditorium per
year for tertiary graduation ceremonies.
The Theatre will assit the City’s economic growth by
acting as a cultural magnet for out-of-town visitors.
To maintain the City’s cultural heritage the Theatre will
maintain and preserve the physical infrastructure of the
building and its fixtures and fittings.
Actions
To promote and operate the Regent the Board will:
• Liaise with marketing personnel to identify and
source product for the Regent.
• Produce an e-news bulletin for the Regent to
promote public awareness of upcoming events.
• Develop a database of prospective patrons for
Regent events.
• Maintain and operate an entrepreneurial fund to
enable financial assistance to be provided where
considered appropriate to secure shows and
performances for the Regent.
• Operate a street-front event ticketing facility for
events at the Regent and elsewhere.
• Encourage continuing appreciation of the
heritage aspects of the Regent and oversee the
maintenance and preservation of such aspects to
prevent degradation.
Results
Target met - 56.5%.
Survey done in November 2011 - household visitor
satisfaction rating of 98%; resident satisfaction of
85% with 14% neutral or don’t know.
Target not met – 3.59 times.
Target met - 213.
Target met - 40.
Target met - 102,351.
Target met - 12.
At least eight days of use of the theatre’s auditorium
per year for school prize-givings.
At least 35 functions per year held in the Regency
Room and/or Mezzanine area.
At least 100 days of use for the year in respect of the
Rehearsal room.
Target met - 14.
Target not met - 28.
Target met - over 100.
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Palmerston North City Council Annual Report 2011/12

Te Manawa Museums Trust Board
Objectives
Te Manawa is one of the Council’s major arts and cultural
facilities. It consists of the museum, science centre and
art gallery and is run for the Council by the Te Manawa
Museums Trust Board. It has key roles in promoting the
arts, culture and science, while educating visitors by
providing challenging experiences.
What does the Board do?
The Board governs and manages Te Manawa as it
develops as a significant regional cultural institution
encompassing a museum, gallery and science centre.
What does Te Manawa do?
Te Manawa provides a regional cultural centre where art,
heritage and science themes dominate. In doing this Te
Manawa is also a storehouse of regionally and nationally
important collections of Taonga Māori, New Zealand
contemporary art, social and natural history.
To promote educational and challenging experiences Te
Manawa will host international touring shows and home
grown exhibits that celebrate the joys and challenges of
provincial life and stimulate the mind.
These are supported by education programmes, special
events, and public programmes. In undertaking these
activities Te Manawa contributes to the City’s goals:
• Palmerston North is a socially sustainable city
where people want to live because of its safe and
easy lifestyle and its many social, cultural and
recreational opportunities
• Palmerston North is an economically sustainable
city which attracts, fosters and retains businesses
and jobs to create a prosperous community.
Actions
To enable and improve the ongoing visitor experience
the Board will:
• Enhance Te Manawa’s engagement and
participation with the community and visitors.
• Ensure collections in the care of Te Manawa are
professionally managed and contribute to the
community’s understanding of Manawatū history,
art, creativity and scientific endeavour.
• Strengthen the funding base.
• Develop a high performing organisation.
Council Controlled Organisations Te Manawa Museums Trust Board
Palmerston North City Council Annual Report 2011/12
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Key Performance Measures
Target
Results
Te Manawa visitor surveys target 90% satisfaction. 94% satisfaction comprising 63% excellent, 23%
very good, 8% good from Te Manawa visitor survey.
Maintain and grow visitation, target visits to Te
Manawa 164,729, exhibitions at other venues 80,000
and to website 125,000.
Collections are housed to best practice museum
standards.
NZ Rugby Museum is co-located into the Te Manawa
complex.
Target not met – visits to Te Manawa 152,148,
exhibitions at other venues 21,793.
Target met – visits to website 137,033.
Target met.
Target met.
Council Controlled Organisations Te Manawa Museums Trust Board
A minimum of 40 public programmes are run during
the year with total visitation 11,000 and participation
in two events attracting at least 1,000 visitors.
A minimum of two temporary exhibitions from the Te
Manawa collection are held to reflect the distinctive
characteristics of our community and its collections.
A minimum of three outreach activities occur.
Two temporary exhibitions feature material from
regional collections.
Two events developed to include focus on regional
collections.
Revenue targets for semi-permanent developments
are increased. Target for third party revenue to
exceed $516,000.
Target Met - more than 40 programmes and events
run, attracting 15,159 participants; two events -
Grand Opening Weekend and The Queen’s Birthday
Party - attracted 1,900 visitors (less than the 2,000
target).
Target met - Eye on Art: Movers and Shakers; and
Now & Then: Space Invaders.
Target met - presentations at Lower North Island
Youth Justice Centre, Te Wananga o Raukawa
and two local alternative education groups, and
participation at various community events.
Target met - Ralph Hotere: Small Holes in the
Science; Te Huringa/Turning Points; An Embroided
Celebration; Now & Then - all feature material from
regional collections.
Target met - public talk by Massey lecturers,
focusing on objects from the Massey Collection in
relation to the exhibition: The Labours of Herakles;
Series of back of house public tours by Social History
Registrar, focusing on objects from the textiles
collection at Te Manawa.
Target not met - $438,000.
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Palmerston North City Council Annual Report 2011/12

Palmerston North Airport Ltd
Objectives
Palmerston North Airport Ltd is a public limited liability
company incorporated and registered under the
Companies Act 1993 and is 100% owned by the Council.
The principal activities of the company are to provide
airport facilities and services to airlines and airport
users (both commercial and non-commercial) through
the ownership and operation of Palmerston North
International Airport.
What does the Board do?
The Board will protect shareholder value and provide a
return to the Council in the form of growth in company
value and annual dividends.
What does the Palmerston North
Airport do?
The Airport will continue to provide the City and the
region with a key transport gateway that contributes to
the City’s and the region’s economic development.
The Airport will also develop as the principal Central
New Zealand passenger and freight hub; to service
international flights with a focus on trans-Tasman and
the Pacific (for which re-establishment of the service
is sought); and to lead Manawatū regional economic
development.
In doing this the Airport contributes particularly to
the City’s and region’s economic growth by providing
transportation services that link businesses to domestic
and international suppliers and markets. It also brings
visitors to the City.
It also contributes to the positive image of the City as a
good place to do business.
Key Performance Measures
Target
A ratio of net surplus before interest/tax/revaluations to
total assets inclusive of revaluations of 3.0% per year.
A ratio of net surplus after interest/tax to
consolidated shareholders’ funds inclusive of
revaluation reserve of 1.7%.
To maintain an interest coverage ratio of net surplus
before interest and tax to interest at or above 2.0.
To maintain a tangible net worth (total tangible
assets after revaluations less total liabilities) of or
above $35 million.
Actions
The Airport Company will operate the Airport for both
commercial and non-commercial aviation users. It is
responsible for all operational and commercial aspects
of the Airport. It provides international and domestic
terminal facilities.
The company will meet expected new runway end safety
area requirements by providing physical extensions
that preserve or increase the current declared runway
operating lengths, dependent upon progress in reestablishing
international services.
A programme of roading construction will be continued
as previously planned, with provision made to respond
to demand for increased aircraft apron space and
international border processing areas.
The Company will also consider further growth
consistent with the Company objectives such as:
• Upgrading services for the travelling public
• Having an appropriate number of concessions
within the terminal to maximise financial return
• Encouraging the provision of aviation-related
commercial facilities such as freight handling
• Providing adequate cargo and other storage
buildings at commercial rentals for end users
• Encouraging airlines to provide new modern
facilities at the airport
• Providing covered light aircraft parking on a
commercial basis
• Promoting the establishment of an industrial park
on the airport.
Results
Target not met - 2.6%.
Target not met - 1.4%.
Target met - 2.55.
Target not met - $34.85m.
Council Controlled Organisations Palmerston North Airport Ltd
To maintain a level of satisfaction of 90% and will
periodically measure this by customer survey.
Total passenger throughput of 465,000 during the
2011/12 year.
Target met - 96% of customers were either quite
satisfied or very satisfied (Customer Satisfaction Survey
November 2011).
Target not met - 449,318.
Palmerston North City Council Annual Report 2011/12
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Council Controlled Organisations Palmerston North Airport Ltd
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Palmerston North City Council Annual Report 2011/12