Agenda item

Purpose:

To provide a progression report on Events further to the findings of an independent

Events review; and to consider the options that will underpin a forward plan and future Events Strategy.

Recommendations:

To consider the forward plan for Events and offer comments and recommendations toinform the Cabinet paper for the 25th July 2018, regarding the preferred ‘Hybrid’ optionthe purpose of which is to put the Events and Special Projects team on a strategic andstable footing.

Key Issues:

1. Following the findings of a number of internal audit reports and a Limited Assurance audit opinion, an independent evaluation was undertaken to review progress made towards the implementation of the internal audit recommendations. The purpose of the review was to:

 review the current “in house“ team using the audit report as baseline data to analyse current procedural issues which pose risks to the Council;

 produce a detailed options analysis of alternative delivery options to include a hired facilities model, joint venture partnership delivery, etc. which will be specific in recommending new approaches to future event delivery;

 undertake local stakeholder consultations to gauge opinion regarding the staging of major events at Caldicot Castle;

 produce a detailed analysis of the option to divest from events to include the projected impact on tourism visitor numbers, the reduced potential for repeat visits, the potential for reduced visitor spend and the impact on the benefit of wider community engagement opportunities;

 inform a Forward Strategy document which contains a full appraisal of all available options; will be strong in strategic direction and guidance surrounding good governance; will enshrine due diligence and include guidance on how this can be operationalised, should the opportunity to divest prove too costly to consider.

2. The findings of the review concurred with the Audit report findings whilst also identifying the benefit of the events to the local economy:

• Events can be considered as part of the DNA of a rural economy like

Monmouthshire’s because they can create a lively and dynamic experience for residents and visitors. They can be key in promoting the area and all the wonderful things people can enjoy whilst visiting it. For local residents, they have provided recreational opportunities that help to build strong and resilient communities through participation and involvement, as well as increasing economic and social benefits in the following ways:

• Events boost the local economy from increased visitor numbers and increased spending associated with events;

• Events act as a platform for providing positive local and national media about the area as well as increasing the county’s profile locally and nationally;

• Events encourage economic growth opportunities by developing the local supply chain to respond to the need of major events;

• Events provide opportunities for the local community to get involved by volunteering to help develop skills and employment opportunities; and

• Events provide local entertainment for the community and additional recreational opportunities for residents across the county.

3. On top of these benefits the review recognised the general feel good factor. Having a lively and dynamic locality brings immeasurable benefits to communities, businesses and tourism which contribute £163.5 million (Visit Monmouthshire Website) to the local economy. After a major event, an area can be ‘buzzing’ for weeks about how great the events are for the region.

4. The review also stated that although it wasn’t possible to measure all the financial benefits of the events at Caldicot Castle more robustly as no specific visitor surveys were carried out there for the events and the database of ticket buyers wasn’t retained. However, the anecdotal information locally was positive and it was clear that there was good energy in the town - pubs and restaurants were full and local accommodation providers were fully booked well in advance.

5. The review considered that if the Council were going to continue bearing the risk of the events it puts on the site, more advice needed to be taken in terms of the quality control of the events taking place and their financial viability. All the stakeholders and officers interviewed demonstrated an appetite to continue doing large events at Caldicot Castle.

That said, some of the feedback was that there should be a reasonable mix of larger and smaller type events. There were some tensions in terms of the restrictions placed on those wanting to use the site as a country park which needed to be considered going forward. The mix demonstrated in 2017 was good, but perhaps leaning too much towards the music side, and two concerts only might have been more appropriate.

6. Other general conclusions included:

 Many of the problems encountered by the Council in relation to the 2017 summer events in Caldicot Castle related to lack of experience and the ambitious programme which involved a large increase in scale and volume of events from previous years;

 Additionally, the local audience for the events in the Castle is undoubtedly a strong one but with too many events there was not enough money in the local economyto support all the events. Emphasis needs to be placed on events that attract audiences from outside Monmouthshire i.e. increasing the current 9% figure of event visitors from outside the County.

7. Going forward the review recommended:

 A system of more robust checking of the key elements that failed (reporting of ticket sales, budget updates and supplier management and procurement, effectively all the recommendations from the audit reports) be it through regular meetings or other systems of checks and balances and robust assistance of support services;

 Improved communication and engagement. A shared information system is therefore recommended which is updated and synced where all key people can refer to it. This would need to be checked on a regular basis to ensure all key documents are in place and up to date. This would involve agreeing the nature of the files to be kept in advance, aligned with an event timeline from the first day after the project is signed off;

 In terms of procuring suppliers a clear set of guidelines needs to be given to the team in terms of what they can and can’t do. If those procedures are already in place then the system needs to be enforced with no suppliers being signed off unless they have been procured the correct way. This includes signoff to ensure staff being taken on and that they have been recruited properly in line with the Council’s staff recruitment policy.

Member Scrutiny:

Members supported the hybrid model but also explained that there was a need to be selective and understand risk.  It was responded that there is a financial viability template. Noting that many factors are taken into account when assessing events, it was agreed that this aspect could be transferred into a risk matrix and added to the Cabinet report.

A Member agreed that the new management structure will help to address risk, that there is the significant potential to increase income generation at MCC sites and suggested that the ADM team should be allowed some autonomy to make decisions for example it was also suggested that development of the cycleway from the Ministry of Defence station to the coastal path should be progressed.

The Assistant Finance/Section 151 Officer reported that events had been put forward as a means of sustaining Council activities but had made a loss in each of the last three years and suggested that core budget provision is made for staff.  Members were encouraged, when considering next year’s budget, to reflect on the business cases for events and the Borough Theatre and the return on investment. Members were reminded that evaluation can be different from the private sector which is measured solely in financial terms whereas in the public sector an event could be evaluated as a good service to the community.

A Member suggested seeking the right partners and sharing cultural exchange to learn about commercial operations.

The Head of Enterprise and Community Development responded about the commercial focus of the team and that the review had identified important lessons.  It was confirmed that there is a community and corporate function to the role, not just a commercial aspect, and the hybrid model provides this flexibility. 

A Member asked if there was a better way to promote this model.  It was responded that in the current financial climate, authorities have to consider commercial undertakings to sustain its organisation and the annual budget process doesn’t necessarily provide enough time to consider how best to invest.  Members were reminded that there is a commercial and financial aspect and they should request updates from officers.

The Events Facilitator emphasised the importance of maximising use, access and opportunities at the various sites and also the importance of sensitivity to the local conditions whilst ensuring that events are also for the authority’s benefit.

A Member stressed the importance of the organisers of events being careful for the environment for those who do not wish to attend e.g. noise, waste etc.  It was responded that efforts are being made to take account of these aspects e.g. new noise management policy for Caldicot Castle and notification to residents of any expected disruption and also not over-using each venue.  Each event will have to a proforma to adhere to, to ensure standards are consistently applied and organisers will have access to a range of expert advice.