Agenda of Economic Development & Communications Committee Meeting

Agenda (Open Portion)

Economic Development & Communications Committee Meeting

Page 4

21/2/2019

Economic Development & Communications Committee Meeting (Open Portion) held Thursday, 21 February 2019 at 5:00 pm in the Lady Osborne Room, Town Hall.

COMMITTEE MEMBERS

Thomas (Chairman)

Zucco

Sexton

Dutta

Ewin

NON-MEMBERS

Lord Mayor Reynolds

Deputy Lord Mayor Burnet

Briscoe

Denison

Harvey

Behrakis

Sherlock

Apologies:

Leave of Absence: Nil.

1. Co-Option of a Committee Member in the event of a vacancy

2. Confirmation of Minutes

The minutes of the Open Portion of the Economic Development & Communications Committee meeting held on Thursday, 24 January 2019, are submitted for confirming as an accurate record.

3. Consideration of Supplementary Items

Ref: Part 2, Regulation 8(6) of the Local Government (Meeting Procedures) Regulations 2015.

Recommendation

That the Committee resolve to deal with any supplementary items not appearing on the agenda, as reported by the General Manager.

4. Indications of Pecuniary and Conflicts of Interest

Ref: Part 2, Regulation 8(7) of the Local Government (Meeting Procedures) Regulations 2015.

Members of the Committee are requested to indicate where they may have any pecuniary or conflict of interest in respect to any matter appearing on the agenda, or any supplementary item to the agenda, which the committee has resolved to deal with.

5. Transfer of Agenda Items

Regulation 15 of the Local Government (Meeting Procedures) Regulations 2015.

A committee may close a part of a meeting to the public where a matter to be discussed falls within 15(2) of the above regulations.

In the event that the committee transfer an item to the closed portion, the reasons for doing so should be stated.

Are there any items which should be transferred from this agenda to the closed portion of the agenda, or from the closed to the open portion of the agenda?

Item No. 6.1

Agenda (Open Portion)

Economic Development & Communications Committee Meeting

Page 7

21/2/2019

REPORT TITLE: Measurement System - International Relationships

REPORT PROVIDED BY: Director Community Life

Economic Development Project Officer

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to provide further information on the potential of a development of a robust measurement system for the qualitative and quantitative value of international relationships.

1.2. The measurement system will aid the Council in making more informed decisions about current and future international relationships based on associated qualitative and quantitative benefits.

1.3. Keeping qualitative and quantitative benefits front of mind when decision making will result in greater outcomes for the community from expenditure associated with international relationships.

2. Report Summary

2.1. Following the signing of the friendship city agreement with Fuzhou in January 2017, the Council commenced discussions about the development of system to measure the value of international relationships.

2.2. After a period of investigation, Council on 4 June 2018 resolved the following in relation to Alderman Thomas’ proposal that a robust measurement system for the value of international relationships be developed. It was resolved that:

The Council support the deferral of this project until after the City of Hobart elections in October 2018 when a report will be provided to Council to further scope the project and to provide detailed costings.

2.3. This report addresses Council’s resolution above.

Scope

2.4. It is proposed that the project will include the following elements:

· Desktop research contributing to the design of a survey.

· Development of a survey and circulation to Sister Cities Australia (SCA) members (60+).

· Analysis of results of the survey.

· Development of a report of key findings and insights resulting from the project (including a consideration of the City’s current measurement tool for international relations activities).

2.5. It is proposed that a consultancy is engaged to complete this project. This is due to the time intensive nature of the project.

Also, given that an element of the project will include a consideration of the City’s current measurement tool, it is felt that engagement of a third part will result in a more objective evaluation.

Cost

2.6. Preliminary discussions with potential consultants have indicated that this work will cost approximately $30,000 (exc. GST).

Other projects

2.7. RMIT has received Federal funding to showcase how Australian cities and regions can derive benefits from ‘sister-city’ relationships with China. Although this may be useful to the City of Hobart in identifying interesting case-studies, it does not go on to apply these findings to the development of an evaluation tool.

3. Recommendation

That:

1. The Council supports a City of Hobart commissioned project to develop a robust tool to measure the value of the City’s international relationships (present and future).

2. The cost of up to $33,000 (GST inc.) to engage a consultancy be derived from the Economic Development budget function from the 2018–19 financial year.

3. A report be brought back to the Council with the findings from the project and proposed application to the way in which the City measures the value of its international relationships.

4. Background

4.1. Upon receiving a report on the signing of the friendship city agreement with Fuzhou in January 2017, Council discussed the development of guidelines for measuring the value of the City’s international relationships, resolving inter alia on 6 March 2017:

That a report be provided regarding the development of guidelines for the City of Hobart to measure the qualitative and quantitative values of friendship and sister city relationships.

4.2. Alderman Thomas proposed a professional development trip to Xi’an to commence the progression of the Council resolution above. Xi’an was hosting an economic forum at which many sister cities were attending. This group of international cities provided a significant test bed for the project.

4.3. A report (Attachment A) was presented to Council on the visit to Xi’an on 4 December 2017 at which the Council resolved inter alia:

That:

1. Council endorse, in principle, the project proposed by Alderman Thomas to generate a robust framework measuring the value of international relationships, derived from an extensive survey of international cities.

(i) A further report be provided to Council to further scope the project and to provide detailed costings.

2. Council endorse Alderman Thomas’ attendance of Sister Cities Australia AGM and a forum on 8 December 2017 to promote the project to the network and seek research and resource opportunities.

4.4. Alderman Thomas attended the Sister Cities AGM and forum in December 2017. At the AGM Sister Cities Australia confirmed in principle support for Alderman Thomas’ proposed project, contingent on the project being deferred until after the City of Hobart elections in October 2018. This was reported to Council in a memorandum presented on 4 June 2018.

4.5. At its meeting of 4 June 2018, in response to the memorandum Council resolved:

That the Council support the deferral of this project until after the City of Hobart elections in October 2018 when a report will be provided to Council to further scope the project and to provide detailed costings.

This report is a response to the resolution above.

Project Scope

Alderman Thomas proposed that a framework should be created to enable the Council to robustly consider the qualitative and quantitative value of the City’s current and future international relationships.

This framework will be created through the development of a survey to be distributed to 60+ member cities of Sister Cities Australia with international relationships. Survey responses will be analysed, as well as an evaluation of Council’s current measurement tool (the International Relations Action Plan).

A draft proposed project plan is as follows. Note that this may change during the process of requesting quotes and selecting a consultancy to complete the project.

Date	Actions
4 March 2019	Seek Council endorsement to proceed
5 March – 15 March 2019	Develop consultant brief
W/C 18 March	Request quotes in response to brief
W/C 1 April	Select preferred consultant
8 April	Engage consultant and commence project
W/C 8 April	Desk research contributing to survey design
19 April	Survey developed and circulated to stakeholders - City of Hobart and Sister Cities Australia (SCA) for feedback
W/C 29 April	Questionnaires circulated
27 May	Receive returned questionnaires
June	Analyse results and draw conclusions
June / July	Consider project findings against existing IRAP and take report to Economic Development and Communications Committee (20 June) and Council (8 July) with suggested amendments to IRAP.

Costings

Based on the completion of similar projects and preliminary discussions with potential consultancies to gain an understanding of likely costs, it is anticipated that the cost of engaging a suitably qualified consultancy would be in the order of $30,000 (GST exc.).

Other Projects

4.6. It has become apparent that RMIT University has received funding from the Australian Government (Department of Foreign Affairs and Trade). $25,000 has been awarded with the aim of showcasing ‘…how Australian cities and regions can derive economic, cultural and educational benefits from sister city relationships with China….’

4.7. It is expected that the RMIT project ‘Sister-City Partnerships: Building Australia-China Economic, Cultural and Educational Exchange’ will be at a stage to share results in July / August this year from interviews with some of the 83 Australian cities that have sister / friendship relationships with Chinese cities.

4.8. Discussions have been had with the RMIT project team and although this research piece will be of interest to the City of Hobart, the emphasis is on case studies rather than the development of any kind of analytical tool.

5. Proposal and Implementation

5.1. It is proposed that Council endorse the engagement of a consultancy to lead this project. Council endorsement of the project essentially is endorsement of the project plan and expenditure (section 4).

5.2. Although it is proposed that a consultancy manage this project, it expected that officer time will be required to assist with the promotion of the survey as a means of increasing response rate from SCA members.

5.3. The conclusions from the project will be used to improve the way in which the City of Hobart currently measures the value of its international relationships. It is expected that these improvements will be presented to Economic Development and Communications Committee on June 20 and Council on July 8 2019.

5.4. The findings of this project will be shared with SCA and its members.

6. Strategic Planning and Policy Considerations

6.1. Continued efforts to drive outcomes from Hobart’s international relationships is in line with the following aspects of the City of Hobart Capital City Strategic Plan:

1.1.6 Develop relationships with other cultural and educational institutions as opportunities arise.

1.2.1 Develop strategic relationships with export focussed industries such as education, arts, tourism and Antarctic Research.

1.2.4 Support the Council’s existing sister city relationships with Yaizu, L’Aquila, Xi’an and respond to new opportunities.

6.2. This is also in line with the elements of the community vision:

8.5.4 Our local government is accountable to our communities, acting as an exemplar council in working with an inspiring people from across the city to contribute.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. It is anticipated that the project will cost $30,000 (GST exc.). This will be derived from the economic development budget function for the 2018–19 financial year.

7.2. Impact on Future Years’ Financial Result

7.2.1. Findings from this project may impact the future direction of the City’s international relations program which would have an impact on future years’ financial results.

Until the project is complete, it is not clear what the future financial impact would be.

7.3. Asset Related Implications

7.3.1. None

8. Legal, Risk and Legislative Considerations

8.1. The proposed project is an examination of the ways in which value is measured in formal international relationships. Although the relationships are formal, agreements of this nature are not legally binding and such do not expose the City of Hobart to risk of this nature.

9. Environmental Considerations

9.1. International travel has an environmental impact. To minimise this impact and maximise the value created for the City from this travel, it is paramount that the City’s international activities are well considered.

10. Social and Customer Considerations

10.1. It is of social importance that the City of Hobart fosters a diverse selection of international relationships based on geography, industry and nature of outcomes (community, culture, economic).

10.2. The City establishing Sister or Friendship City Agreements facilitates a broader local understanding and appreciation for different cultures and communities.

10.3. Fostering these relationships is also a powerful and respectful message to people within the community who have close cultural ties with the cities in question.

10.4. The community may question the value of international relations if the City of Hobart does not continue to continuously consider the way in which it measures and reports this information and involves the community in maximising opportunities arising. This is largely because costs associated with these visits are immediate and easy to identify, whereas benefits can be less explicit and reaped further into the future.

10.5. A robust tool to enable the measurement of value of international relationships would help to demonstrate the creation of value for the community and help to address some of their questions and concerns.

11. Marketing and Media

11.1. A number of innovative and interesting ideas in relation to Hobart’s four sister / friendship cities have come from the community to date. It is therefore paramount that community awareness of these relationships continues to be increased.

11.2. The City Marketing Unit assists with the promotion of the City’s international relationships through City News and the City’s social media.

11.3. From extensive desk research and many conversations with cities around the world that have international relationships, it is clear that there is a gap when it comes to the measurement of value. The development of a robust tool would place the City of Hobart in a strong leading position in this activity area which would be positive for the Council’s reputation and brand.

12. Community and Stakeholder Engagement

12.1. The proposed questionnaire to be sent out to SCA members would be developed through consultation with the City of Hobart and SCA.

12.2. Much of the project is based on engagement with Australian cities with international relationships who would be responding to the questionnaire.

13. Delegation

13.1. This matter is one for the Council.

As signatory to this report, I certify that, pursuant to Section 55(1) of the Local Government Act 1993, I hold no interest, as referred to in Section 49 of the Local Government Act 1993, in matters contained in this report.

Tim Short

Director Community Life

Lucy Knott

Economic Development Project Officer

Date: 14 February 2019

File Reference: F19/16241

Attachment a: Report - Economic Development & Communications Committee - 23 November 2017 - Summary of September Visit to Xi'an ⇩

Item No. 8.1

Agenda (Open Portion)

Economic Development & Communications Committee Meeting

Page 38

21/2/2019

Memorandum: Lord Mayor

Deputy Lord Mayor

Elected Members

Response to Question Without Notice

Sister City Relationship - India

Meeting: Economic Development & Communications Committee

Meeting date: 24 January 2019

Raised by: Councillor Dutta

Question:

The Sister City relationship with China has positively impacted the Hobart community. I don’t see a sister city relationship at present with India. What is the requirement to consider India in this role?

Response:

The City of Hobart has a policy ‘Guidelines for Future International Relationships’ that sets out how current relationships and the development of future relationships are governed. Please find this policy attached to this response.

The policy identifies three different relationship types (information exchange, friendship agreement and sister city relationship). It also sets out nine criteria in order of priority that should be considered when evaluating a potential new relationship. These are:

i. clear identification of the specific outcomes sought from the relationship;

ii. relevance of the relationship in terms of achieving Council’s major goals as outlined in the Strategic Plan;

iii. the value of the relationship in terms of enhancing economic development, business investment, educational and tourism outcomes for Hobart and Tasmania, including specifically support for local businesses and educational institutions;

iv. the value of the relationship in terms of supporting community and cultural linkages;

v. willingness and capacity of the business or local community of interest to support the relationship;

vi. the potential for mutual learning through exchanges and information sharing to facilitate sustainability and continuous improvement in the development of the Council’s economic, social and environmental objectives;

vii. the capability of the Council to provide skills and resources to assist in humanitarian and capacity building projects;

viii. Council resources (human and financial) required to sustain the relationship to the satisfaction of both parties; and

ix. evaluation of any political ramifications through consultation with the Department of Foreign Affairs and local communities.

Whether to enter into one of the three levels of relationship described above is ultimately a matter for the Council based on advice from officers evaluating a particular proposal against the above criteria.

Tim Short

Director Community Life

Date: 14 February 2019

File Reference: F19/11236; 13-1-10

Attachment a: City of Hobart Policy: Guidelines for Future International Relationships ⇩

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