Finance and Performance Committee

Agenda

 

 

Notice of Meeting:

An ordinary meeting of the Finance and Performance Committee will be held on:

 

Date:                                     Wednesday 6 June 2018

Time:                                    9.30am

Venue:                                 Council Chambers, Civic Offices,
53 Hereford Street, Christchurch

 

 

Membership

Chairperson

Deputy Chairperson

Members

Councillor Raf Manji

Deputy Mayor Andrew Turner

Councillor Vicki Buck

Councillor Jimmy Chen

Mayor Lianne Dalziel

Councillor Mike Davidson

Councillor Anne Galloway

Councillor Jamie Gough

Councillor Yani Johanson

Councillor Deon Swiggs

Mr Mike Rondel (Non-Voting Member)

 

 

31 May 2018

 

 

 

Principal Advisor

Carol Bellette

General Manager Finance and Commercial

 

Aidan Kimberley

Committee and Hearings Advisor

941 6566

aidan.kimberley@ccc.govt.nz

www.ccc.govt.nz

Note:  The reports contained within this agenda are for consideration and should not be construed as Council policy unless and until adopted.  If you require further information relating to any reports, please contact the person named on the report.
To view copies of Agendas and Minutes, visit:
https://www.ccc.govt.nz/the-council/meetings-agendas-and-minutes/

 


Finance and Performance Committee

06 June 2018

 

Terms of Reference Finance and Performance Committee

 

Chair

Councillor Manji

Membership

Deputy Mayor Turner (Deputy Chair), Mayor Dalziel, Councillor Buck, Councillor Chen, Councillor Davidson, Councillor Galloway, Councillor Gough, Councillor Johanson, Councillor Swiggs and a non-voting independent member appointed by the Council.

Quorum

Half of the members if the number of members (including vacancies) is even, or a majority of members if the number of members (including vacancies) is odd.

Meeting Cycle

Monthly

Reports To

Council

 

Responsibilities

The focus of the Finance & Performance Committee is the financial and non-financial performance of the Council and its subsidiaries.

 

The Finance & Performance Committee:

·         Seeks to enhance the Council’s accountability with the community in relation to the Council’s financial and non-financial performance

·         Promotes active citizenship, community participation and community partnerships, including participatory budgeting

·         Works in partnerships with key agencies, groups and organisations

The Finance & Performance Committee considers and reports to Council on issues and activites relating to:

·         The preparation and adoption of the draft and final Annual Plan and Long Term Plan (based on the strategic direction of the Strategic Capability Committee)

·         Performance  against the  Long Term Plan (LTP) and  Annual Plan (AP), including financial performance and non-financial performance including:

-          medium to long term asset management

-          treasury investment and borrowings

-          organisational performance and capability

·         Insurance matters including to:

-          consider legal advice from the Council’s legal and other advisers,

-          approve further actions relating to the issues,

-          make recommendations to Council concerning formal actions.

·         Performance of a number of subsidiaries including Council Controlled Organisations (CCO). 

·         Recommendations   from   Council’s   Subcommittees,   Community Boards, the public, stakeholders and providers in relation to finance and performance.

·         Overseeing the development to the Annual Report for consideration by the Council

·         Development of the financial policy of the Council

·         Development of a Genuine Progress Indicator

 

Process for appointing Independent Members to the Finance and Performance Committee

 

The following principles will guide the appointment process for Independent Members of the Finance and Performance Committee:

 

1.              Council Officers, in consultation with Elected Members, will compile a longlist of candidates and provide this list to the General Manager Finance and Commercial for consideration.

 

2.              If appropriate, the Chair of the Finance and Performance Committee and the General Manager Finance and Commercial may endorse the nominations.

 

3.              Candidates will be contacted at the appropriate time to confirm their willingness to serve as an independent committee member and, if confirmation is received, appropriate background checks as determined by the General Manager Finance and Commercial will be conducted. Candidates will also be informed of Council policies.

 

4.              The Chair and Deputy Chair of the Finance and Performance Committee, and the General Manager Finance and Commercial, will review the candidates to develop a shortlist by assessing the following:

 

a.              Professional credentials and relevant experience.

b.             Their understanding of relevant legislation.

c.              Experience overseeing or assessing the performance of organisations.

d.             Potential conflicts of interest.

e.             Affiliations or connections with the Council and its related entities.

f.               Reference and background check reports.

 

5.              The shortlist of candidates will be presented to an Appointments Panel. The Panel will select from that shortlist the independent member to be appointed to the Committee. The resolution to appoint the independent member should specify the dates on which the appointment commences and concludes. 

 

1.         The Chair of the Panel will inform the Council in writing of the Panel’s decision.

 


Finance and Performance Committee

06 June 2018

 

Part A        Matters Requiring a Council Decision

Part B         Reports for Information

Part C         Decisions Under Delegation

 

 

TABLE OF CONTENTS

 

C       1.       Apologies.......................................................................................................................... 5

B       2.       Declarations of Interest................................................................................................... 5

C       3.       Confirmation of Previous Minutes................................................................................. 5

B       4.       Public Forum.................................................................................................................... 5

B       5.       Deputations by Appointment........................................................................................ 5

B       6.       Presentation of Petitions................................................................................................ 5

STAFF REPORTS

C       7.       Corporate Finance Report for the period ending 31 March 2018............................. 13

C       8.       Performance Reporting for April 2018........................................................................ 21

C       9.       Regenerate Christchurch - Performance Report for the Quarter 1 January to 31 March 2018................................................................................................................................. 37

C       10.     Development Christchurch Ltd - Performance Report May 2018............................. 51

C       11.     Resolution to Exclude the Public................................................................................. 57  

 

 


Finance and Performance Committee

06 June 2018

 

 

1.   Apologies

An apology was received from Councillor Manji.

2.   Declarations of Interest

Members are reminded of the need to be vigilant and to stand aside from decision making when a conflict arises between their role as an elected representative and any private or other external interest they might have.

3.   Confirmation of Previous Minutes

That the minutes of the Finance and Performance Committee meeting held on Wednesday, 4 April 2018  be confirmed (refer page 6).

4.   Public Forum

A period of up to 30 minutes may be available for people to speak for up to five minutes on any issue that is not the subject of a separate hearings process.

 

Jan Buckland, local resident, will speak during the public forum regarding the rural rates differential.

 

5.   Deputations by Appointment

There were no deputations by appointment at the time the agenda was prepared. 

6.   Petitions

There were no petitions received at the time the agenda was prepared.


Finance and Performance Committee

06 June 2018

 

 

 

Finance and Performance Committee

Open Minutes

 

 

Date:                                     Wednesday 4 April 2018

Time:                                    9.34am

Venue:                                 Council Chambers, Civic Offices,
53 Hereford Street, Christchurch

 

 

Present

Chairperson

Deputy Chairperson

Members

Councillor Raf Manji

Deputy Mayor Andrew Turner

Councillor Vicki Buck

Councillor Jimmy Chen

Mayor Lianne Dalziel

Councillor Mike Davidson

Councillor Jamie Gough

Councillor Yani Johanson

Councillor Deon Swiggs

Mr Mike Rondel (Non-Voting Member)

 

 

3 April 2018

 

 

 

Principal Advisor

Carol Bellette

General Manager Finance and Commercial

 

Aidan Kimberley

Committee and Hearings Advisor

941 6566

aidan.kimberley@ccc.govt.nz

www.ccc.govt.nz

To view copies of Agendas and Minutes, visit:
www.ccc.govt.nz/Council/meetingminutes/agendas/index

 


Part A        Matters Requiring a Council Decision

Part B         Reports for Information

Part C         Decisions Under Delegation

 

 

 

The agenda was dealt with in the following order.

1.   Apologies

 

 

Committee Resolved FPCM/2018/00016

That the apology from Councillor Galloway be accepted.

Deputy Mayor/Councillor Davidson                                                                                                                    Carried

 

2.   Declarations of Interest

Part B

There were no declarations of interest recorded.

3.   Confirmation of Previous Minutes

Part C

Committee Resolved FPCM/2018/00017

Committee Decision

That the minutes of the Finance and Performance Committee meeting held on Wednesday, 28 February 2018 be confirmed.

Councillor Gough/Councillor Davidson                                                                                                               Carried

 

4.   Public Forum

Part B

There were no public forum presentations.

5.   Deputations by Appointment

Part B

There were no deputations by appointment.

6.   Presentation of Petitions

Part B

There was no presentation of petitions.

 

7.   Asset Management Quarterly Report - Three Waters & Waste - Asset Valuation and Condition Assessment

 

Committee Resolved FPCM/2018/00018

Part C

That the Finance and Performance Committee:

1.         Receives the information in the report

2.         Notes that feedback is sought on suitability of this template (see attachments), to provide information to the Finance and Performance Committee on Three Waters Asset Condition Assessment and Valuations.

Councillor Swiggs/Deputy Mayor                                                                                                                         Carried

 

 

8.   Capital Endowment Fund 2 (Endeavour I-Cap Investment)

 

Committee Decided FPCM/2018/00019

Part A

That the Finance and Performance Committee recommends that the Council:

1.         Agrees that the CEF-2 fund be merged into the main Capital Endowment Fund.

Deputy Mayor/Councillor Chen                                                                                                                            Carried

 

9.   Performance Reporting for February 2018

 

Committee Comment

During its consideration of this item, the Finance and Performance Committee discussed the suitability of some existing Levels of Service targets. The Committee added a recommendation that the Council reviews the Levels of Service prior to the adoption of the Long Term Plan.

 

Committee Decided FPCM/2018/00020

Part A

That the Finance and Performance Committee recommends that the Council:

1.         Receives the information in the report.

2.         Reviews the Levels of Service prior to the adoption of the Long Term Plan.

Mayor/Deputy Mayor                                                                                                                                               Carried

 


 

10. Capital Endowment Fund - Process for Distribution of Funds

 

Committee Comment

The Finance and Performance Committee made the following changes to the staff recommendations:

·    Adding a recommendation to formally adopt the ratio of 40% of earnings going towards the civic and community category, and 60% to the innovation, economic development and environment category.

·    That the level of support required to use the principal of the fund is 80% of the Council members present at the time the vote is taken, not 80% of the whole Council.

·    Clarification that the 80% majority is required to use the principal of the fund, not the capital as referred to in the original recommendations.

The Committee also added an additional recommendation that the Council request advice on releasing the portion of the fund’s income that would have been reinvested in the fund to maintain its real value, for the next three years.

 

 

Committee Decided FPCM/2018/00021

Part A

That the Finance and Performance Committee recommends that the Council:

1.         Resolves that the Capital Endowment fund continues to be managed as a separate ‘ring fenced’ fund that is available to fund projects that are not otherwise provided for through rates revenue or other funding sources available to Council.

2.         Agrees that the earnings from the fund be split 40% to civic and community, and 60% to innovation, economic development and environment.

3.         Resolves that proposals requesting financial support from the fund are considered by the Council as part of the annual plan process and after six months if there are unallocated funds available in the current financial year.

4.         Requests annual and six monthly reports on the:

a.         current balance of available funding;

b.         future commitments; and details of expended funds for the current financial year; and

c.         anticipated demand for funding during the next 6 months.

5.         Resolves that:

a.         The assessment criteria for proposals in the category of innovation, economic development and environment projects or activities are as follows:

i.          Evidence of the economic or environmental benefits that will be provided;

ii.         Evidence that the benefits will be for the people of Christchurch; and

iii.        Evidence that the benefits will be experienced now and in the future.

b.         The assessment criteria for proposals in the category of Civic and community projects and activities are as follows:

i.       Evidence that the proposal is for a specific project or activity projects;

ii.      Evidence that the project demonstrates a benefit for the City of Christchurch, or its citizens, or for a community of people living in Christchurch; and

iii.     Evidence that the benefits will be experienced now and in the future.

6.         Resolves that all reports proposing project or activities to be funded by the Capital Endowment fund must include:

a.         An assessment of the proposal against the agreed assessment criteria for the category of funding to be drawn from, as set out in clause 4. of this recommendation; and

b.         A clear statement about the effect of the proposed funding on the balance of funds for the category to be drawn from for the period funded.

7.         Resolves that a decision to use principal from the fund, including the inflation adjusted component, requires the support of 80% of the Council members present when the vote is taken.

8.         Requests advice to be provided to the Council on releasing the inflation adjusted component for the next three years.

Councillor Gough/Councillor Davidson                                                                                                               Carried

 

11  Resolution to Exclude the Public

 

Committee Resolved FPCM/2018/00022

Part C

That the following people be permitted to remain after the public have been excluded:

·    Leah Scales of Christchurch City Holdings Limited for Item 13 of the public excluded agenda

·    Paul Munro of Christchurch City Holdings Limited for Item 13 and 16 of the public excluded agenda

·    Joanna Norris of ChristchurchNZ for item 15 of the public excluded agenda

·    Darren Burden of Vbase for item 15 of the public excluded agenda

as they have knowledge that is relevant to those items item and will assist the Committee.

AND

That at 10:58 the resolution to exclude the public set out on pages 47 to 49 of the agenda be adopted.

Councillor Gough/Deputy Mayor                                                                                                                            Carried

 

The public were re-admitted to the meeting at 12:22pm.

   

Meeting concluded at 12:23pm.

 

CONFIRMED THIS 6TH DAY OF JUNE 2018.

 

Councillor Raf Manji

Chairperson

 


Finance and Performance Committee

06 June 2018

 

 

7.        Corporate Finance Report for the period ending 31 March 2018

Reference:

18/407466

Presenter(s):

Diane Brandish – Head of Financial Management
Steve Ballard - Manager Funds & Financial Policy

 

 

1.   Purpose and Origin of Report

Purpose of Report

1.1       The purpose of this report is for the Finance and Performance Committee to receive quarterly information relating to the Council’s treasury and debtors risks.

Origin of Report

1.2       This report is staff generated.

2.   Significance

2.1       The decisions in this report are of low significance in relation to the Christchurch City Council’s Significance and Engagement Policy.

2.1.1   The level of significance was determined by the impact of the decisions on the community.

 

3.   Staff Recommendations

That the Finance and Performance Committee recommends that the Council:

1.         Receives the information in the report

2.         Notes that the Council remains within limit on three major prudential ratios and remains outside the limits on one major prudential ratio.

3.         Notes that the Council will return to within the limit for Interest Rate Re-Pricing over time expected to be within 24 months.

4.         Ratifies the approach taken to return to within the limit for Interest Rate Re-pricing as discussed in Section 5.3 of the report.

 

4.   Key Points

Treasury Risk versus Policy Limits

4.1       As at 31 March 2018, all treasury risk positions were within policy limits (except for the on-going approved breach for interest rate hedging – refer section 5 below).

4.2       Council’s borrowing, lending, and cash balances (including year-to-date changes) were:

4.3       Council’s overall cash out-flow over the period was $137 million, funded by $34m of new borrowing and $103m of cash reduction.

Trade Debtors

4.4       At 31 March 2018 trade debtors were $14.8 million, $0.1 million higher than the balance as at 31 December 2017 with the main movements in debtor balances due to:

·    An increase in Building Control debtors of approximately $ 1.1 million from $2.1 million to $3.2 million;

·    A decrease in Resource Consent debtors of $1.0 million from $1.9 million to $0.9 million.

4.5       Trade debtors of $147,489 have been written-off in the 9 months to 31 March 2018, compared to $100,928 for the same period last financial year. Further detail is provided in paragraph 6.5 below.

 

5.   Treasury Report

5.1       Short-term liquidity risk (ensures adequate access to liquid funds):

Policy Limit (ratio must exceed 110%) - Within Limit

5.2       Long-term Funding risk (ensures adequate spread of debt maturities):

Policy Limit (existing maturities only) - Within Limit

In practice, funding risk includes the requirement to access new borrowing as well as to simply re-finance existing maturities – a more comprehensive risk profile is shown below:

Overall Funding Risk (existing maturities plus expected new borrowing)

* Debt reductions are projected from 2026/27.

5.3       Interest Rate Re-Pricing (“hedging” – controls the variability of interest costs from year to year)

Policy Limit – Breach

* Green line = projected borrowing (from draft LTP).
* Red bars = amount of debt at contractually fixed rates as at 30 June each year.
* Dotted lines = Policy Limits (maximum & minimum amount of fixed rate hedging permitted).

5.3.1   Hedging levels continue to be above maximum Policy limits for the 2018 and 2019 years.

5.3.2   This breach has arisen from delays in Council’s debt growth – current hedging of around $1.2 billion was established in 2013 and 2014 to match around 60% of anticipated June 2018 net debt; however, the combination of the large insurance settlement and delayed capital programme has caused actual debt growth to be slower.

5.3.3   In discussion with the Council’s external treasury advisor (PricewaterhouseCoopers), management remains of the view that the cost of adjusting the hedging profile is not justified, and that the best course of action is still to retain the existing hedging profile and allow it to come back within Policy limits over time as remaining cash resources are exhausted and actual debt levels increase.

5.3.4   Councillors last ratified this approach on 25 May 2017.

5.4       Credit Risk (limits exposure to loss from counterparties’ failure to pay)

Policy Limit - Within Limit

6.   Trade Debtors Report

6.1       At 31 March 2018 trade debtors were $14.8 million, $0.1 million higher than the balance as at 31 December 2017. Material items of trade debtors at 31 March 2018 were:

·    General debtors $9.9 million (31 December 2017: $9.9 million)

·    Resource Consent debtors $0.9 million (31 December 2017: $1.9 million)

·    Building Control debtors $3.2 million (31 December 2017: $2.1 million)

6.2       Significant debtors in the General debtors balance at 31 March 2018 were:

·    Vbase Limited (Vbase) $4.190m

·    Land Information New Zealand (LINZ) $2.417m

These two debtors account for $6.6 million or (67%) of the General debtors balance. The Vbase amount is not yet due for payment. The LINZ invoice was due for payment in December 2016 and is discussed in more detail in the Overdue Debtors Report in the public excluded agenda.

6.3       Since March 2018, a number of debts have been paid including:

$1.1m from two Building Control debtors

$0.7m from the Department of Prime Minister and Cabinet

6.4       The graph below shows a 2 year historical trend of the trade debtors balance:

 

Overdue Trade Debtors

6.5       At 31 March 2018 overdue trade debtors, older than 92 days, were $3.8 million (31 December 2017: $4.2 million), and 25.37 per cent of total trade debtors (31 December 2017: 28.57 per cent). Refer to the Overdue Debtors Report in the public excluded agenda for more detail.

The graph below shows a 2 year historical trend of overdue trade debtor balances. The large increase in the overdue trade debtors since December 2016 is discussed in the Overdue Debtors Report in the public excluded agenda.

 

Trade Debtors Written Off

6.6       Trade debtors of $147,489 have been written-off during the nine months to 31 March 2018 compared to $100,928 in the same period in the last financial year. The detail is below:

6.7       The significant write-offs (over $2,000) relate to debtors for Building consent work ($12,744) which have either been a result of a staff error in invoicing ($4,468) or where customers have gone into Liquidation or filed for bankruptcy ($8,276). There have been seven significant write-offs for Street Pole damages totalling $53,810. The offenders were either not available to pursue or in one case filed a No Asset Procedure ($15,278).  The write offs for Recreation & Sports are in relation to Direct Debit debt, which with the introduction of the new Intellileisure System, resulted in identification of debt that was either uneconomical to pursue or were due to system errors.

6.8       The Library debtors written off comprise a large number of relatively small amounts where the debt collection agency has been unable to locate the debtor or the debtor has refused to pay.  Only amounts over $30 are referred to debt collection agencies for collection. Libraries currently have a lending limit of up to 30 books at a time. This limit is primarily utilised by youth members to develop and support literacy. This limit does not affect the use and enjoyment of other customers.

6.9       A summary report of trade debtors written off by month is provided as Attachment A.

7.   Overdue Rates Debtors (Not Part of Trade Debtors Above)

7.1       At 31 March 2018 there were 17,619 rate payers (31 December 2017: 17,240) with overdue rates totalling $19.1 million (31 December 2017: $19.2m). This is an average outstanding rates of $1,084 per overdue rate payer (31 December 2017: $1,114). There were 792 payment arrangements in place – these arrangements allow ratepayers to pay their current year’s rates and arrears over a twelve month period without incurring any additional late payment penalties.

7.2       Customer Service and Rates staff continually endeavour to work with ratepayers to agree mutually acceptable payment options.  However, if this is not successful the process for the recovery of debts outstanding at 30 June of each rating year commences as soon as possible at the start of the following rating year.  The Rates team identifies all balances in arrears greater than $200.00 which do not have a formal payment arrangement. These then go through a recovery process as set out in the Rating Act The process varies depending on whether a property has a mortgage. The following process is in-line with s63 of the Local Government (Rating) Act 2002.

7.2.1   Initially letters are sent out to the rate payers advising that non-payment or failure to enter into a formal arrangement will result in the account being passed onto a Debt Collection Agency or Mortgagee for further recovery action.

7.2.2   From 1 November Mortgagees of mortgaged properties can be contacted through the issue of Formal Demand Notifications for the rates in arrears at 30 June. The Mortgagee will then contact their customer for payment in full or for an arrangement to be put into place.

7.2.3   For properties with no mortgage, legal proceedings may be required to recover the debt which could ultimately result in the sale of the rating unit.

 

Attachments

No.

Title

Page

a

Debtors Written Off Summary - 31 March 2018

20

 

 

Confirmation of Statutory Compliance

Compliance with Statutory Decision-making Requirements (ss 76 - 81 Local Government Act 2002).

(a) This report contains:

(i)  sufficient information about all reasonably practicable options identified and assessed in terms of their advantages and disadvantages; and

(ii) adequate consideration of the views and preferences of affected and interested persons bearing in mind any proposed or previous community engagement.

(b) The information reflects the level of significance of the matters covered by the report, as determined in accordance with the Council's significance and engagement policy.

 

Signatories

Authors

Auke van der Weij - Financial Accountant - Control

Steve Ballard - Manager Funds and Financial Policy

Approved By

Len Van Hout - Manager External Reporting & Governance

Diane Brandish - Head of Financial Management

Carol Bellette - General Manager Finance and Commercial (CFO)

  


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06 June 2018

 

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06 June 2018

 

 

8.        Performance Reporting for April 2018

Reference:

18/485780

Presenter(s):

Peter Ryan, Head of Performance Management Unit

 

 

1.   Purpose of Report

1.1       The purpose of this report is for the Finance and Performance Committee to note an update on LTP level of service performance and to approve a revised level of service target for inspecting food premises.

2.   Staff Recommendations

That the Finance and Performance Committee recommends that the Council:

1.         Receives the information in the report.

2.         Approves the revised target related to the Level of Service, reference 9.0.5, for 2017/18: “Inspect at least 75% of all registered food premises once per year”.

 

3.   Key Points

3.1       Staff forecasts as at 30 April 2018 (Attachment A) indicate a high level of achievement (88.6%), which is in line with historical trends.

3.2       Individual level of service exceptions are set out in Attachment B.

3.3       For the current financial year there is a placeholder level of service target (LOS reference 9.0.5) for inspecting food premises. Following changes to the Food Bill legislation, the Regulatory Compliance team has reviewed this Level of Service and is ready to set the target. Provided rationale: “With recent legislative changes to the Food Act 2014, food premises not previously required to be registered are now required to register with Council. This increases the number of premises requiring verification. The requirements of the new legislation also mean the new verification process could take longer to complete for each operation. In assessing the legislative changes and the effect it will have on our available resourcing, it is proposed the target for the current financial year remain as in previous years, at 75% achievement. As at 8th May 2018, the Regulatory Compliance team is achieving 70%. From the draft LTP 2018-28 the target has been set as, “98% of scheduled Food Control Plan verification visits are conducted.” Staff recommend the Finance & Performance Committee to approve and recommend to Council the revised target related to the Level of Service 9.0.5 for 2017/18: “Inspect at least 75% of all registered food premises once per year”.

 

 

Attachments

No.

Title

Page

a

Level of Service Forecast Delivery Graph April 2018

23

b

Level of Service Exceptions April 2018

24

 

 

Signatories

Authors

Sung Jun Park - Performance Analyst

Monika De Neef - Senior Business Analyst

Approved By

Peter Ryan - Head of Performance Management

Carol Bellette - General Manager Finance and Commercial (CFO)

  


Finance and Performance Committee

06 June 2018

 

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06 June 2018

 

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Finance and Performance Committee

06 June 2018

 

 

9.        Regenerate Christchurch - Performance Report for the Quarter 1 January to 31 March 2018

Reference:

18/334527

Presenter(s):

Ivan Iafeta

 

 

1.   Purpose and Origin of Report

Purpose of Report

1.1       The purpose of this report is for the Finance and Performance Committee to receive Regenerate Christchurch’s quarterly performance for Quarter 3 ending 31 March 2018.

Origin of Report

1.2       This report is staff generated as a result of receiving Regenerate Christchurch’s quarterly performance report.

2.   Significance

2.1       The decisions in this report are of low significance in relation to the Christchurch City Council’s Significance and Engagement Policy.  The level of significance was determined by the extent to which the decisions would have an impact on the community. 

 

3.   Staff Recommendations

That the Finance and Performance Committee recommends that the Council:

1.         Receives the Quarter 3, January to March 2018 performance reporting for Regenerate Christchurch.

 

4.   Key Points

4.1       Staff from the Council and Department of the Prime Minister and Cabinet jointly report to shareholders on Regenerate Christchurch’s performance based on its quarterly report.  Staff engage with Regenerate Christchurch staff to probe and test the information presented.  The joint monitoring report for Quarter 3, 1 January to 31 March 2018 is at Attachment A.

4.2       Regenerate Christchurch’s Quarter 3 report notes the progress it has made on its regeneration projects and activities (refer Attachment B).  As a result of the report closing off at 31 March, progress that is made in April and May (to the time of writing) is noted in this cover report to provide an up-to-date account of progress, as follows: 

·    Ōtākaro Avon River Corridor - identification of land use options has been completed and public exhibition of these options commenced on 26 May;

·    Cathedral Square – shareholders were briefed on the draft vision which is likely to be released to the public for comment in early June; and

·    Central city momentum – Council staff have received preliminary briefings on the evaluation of progress in the regeneration of the central city, assessed in part against the Christchurch Central Recovery Plan’s expectations.

4.3       Regenerate Christchurch’s expenditure for the year to 31 March 2018 is lower than forecast by $1.6 million reflecting the deferral of project work, as discussed in the attached quarterly reports.  The flexibility that Regenerate Christchurch has created for itself to ‘turn off’ project costs as necessary demonstrates attention to value for money for shareholders.  Year-end outturn is expected to be a surplus of $1.1 million, with this funding transferred to the 2018/19 financial year to meet the costs of the deferred projects. 

 

 

 

Attachments

No.

Title

Page

a

Joint Council and Department of the Prime Minister and Cabinet quarterly monitoring report on Regenerate Christchurch for Quarter 3 ending 31 March 2018

39

b

Regenerate Christchurch - Quarterly report to shareholders on performance for Quarter 3 ending 31 March 2018

47

 

 

Confirmation of Statutory Compliance

Compliance with Statutory Decision-making Requirements (ss 76 - 81 Local Government Act 2002).

(a) This report contains:

(i)  sufficient information about all reasonably practicable options identified and assessed in terms of their advantages and disadvantages; and

(ii) adequate consideration of the views and preferences of affected and interested persons bearing in mind any proposed or previous community engagement.

(b) The information reflects the level of significance of the matters covered by the report, as determined in accordance with the Council's significance and engagement policy.

 

Signatories

Author

Linda Gibb - Performance Monitoring Advisor

Approved By

Len Van Hout - Manager External Reporting & Governance

Diane Brandish - Head of Financial Management

Carol Bellette - General Manager Finance and Commercial (CFO)

  


Finance and Performance Committee

06 June 2018

 

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Finance and Performance Committee

06 June 2018

 

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Finance and Performance Committee

06 June 2018

 

 

10.    Development Christchurch Ltd - Performance Report May 2018

Reference:

18/334509

Presenter(s):

Rob Hall - Chief Executive, DCL

 

 

1.   Purpose and Origin of Report

Purpose of Report

1.1       The purpose of this report is for the Finance and Performance Committee to note the quarterly performance report for Development Christchurch Ltd (DCL) dated May 2018.

Origin of Report

1.2       This report is staff generated following receipt of DCL’s performance report on 22 May 2018.

2.   Significance

2.1       The decisions in this report are of low significance in relation to the Christchurch City Council’s Significance and Engagement Policy.  The level of significance was determined by assessing the extent to which the decisions could impact the community.

 

3.   Staff Recommendations

That the Finance and Performance Committee recommends that Council:

1.         Receives Development Christchurch Ltd’s performance report dated May 2018.

 

4.   Key Points

4.1       The performance report from DCL dated May 2018 is at Attachment A.

4.2       Council staff note that it is DCL’s stated intention to engage with community boards on advice that was commissioned by the Council as part of the suburban centre programme.

4.3       Briefing the relevant community boards and Council on this work is the responsibility of Council staff who commissioned the work and this will be done in due course in conjunction with DCL.

 

 

 

Attachments

No.

Title

Page

a

Development Christchurch Ltd - Performance Report May 2018

53

 

 

Confirmation of Statutory Compliance

Compliance with Statutory Decision-making Requirements (ss 76 - 81 Local Government Act 2002).

(a) This report contains:

(i)  sufficient information about all reasonably practicable options identified and assessed in terms of their advantages and disadvantages; and

(ii) adequate consideration of the views and preferences of affected and interested persons bearing in mind any proposed or previous community engagement.

(b) The information reflects the level of significance of the matters covered by the report, as determined in accordance with the Council's significance and engagement policy.

 

Signatories

Author

Linda Gibb - Performance Monitoring Advisor

Approved By

Len Van Hout - Manager External Reporting & Governance

Diane Brandish - Head of Financial Management

Carol Bellette - General Manager Finance and Commercial (CFO)

  


Finance and Performance Committee

06 June 2018

 

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Finance and Performance Committee

06 June 2018

 

 

11.  Resolution to Exclude the Public

Section 48, Local Government Official Information and Meetings Act 1987.

 

I move that the public be excluded from the following parts of the proceedings of this meeting, namely items listed overleaf.

 

Reason for passing this resolution: good reason to withhold exists under section 7.

Specific grounds under section 48(1) for the passing of this resolution: Section 48(1)(a)

 

Note

 

Section 48(4) of the Local Government Official Information and Meetings Act 1987 provides as follows:

 

“(4)     Every resolution to exclude the public shall be put at a time when the meeting is open to the public, and the text of that resolution (or copies thereof):

 

             (a)       Shall be available to any member of the public who is present; and

             (b)       Shall form part of the minutes of the local authority.”

 

This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by Section 6 or Section 7 of that Act which would be prejudiced by the holding of the whole or relevant part of the proceedings of the meeting in public are as follows:


Finance and Performance Committee

06 June 2018

 

 

 

ITEM NO.

GENERAL SUBJECT OF EACH MATTER TO BE CONSIDERED

SECTION

SUBCLAUSE AND REASON UNDER THE ACT

PLAIN ENGLISH REASON

WHEN REPORTS CAN BE RELEASED

12

Public Excluded Finance and Performance Committee Minutes - 4 April 2018

 

 

Refer to the previous public excluded reason in the agendas for these meetings.

 

13

Development Christchurch Ltd - Performance Report (commercially sensitive), May 2018

s7(2)(h)

Commercial Activities

The information contained in this report advises on progress on commercial projects that, if known to the market would prejudice ongoing activities

When the projects discussed in the report are completed

14

Vbase Ltd and ChristchurchNZ Ltd - Quarterly reports for the period 1 January - 31 March 2018

s7(2)(b)(ii), s7(2)(i)

Prejudice Commercial Position, Conduct Negotiations

The reports contain information that if released would reveal information about cost structures, giving competitors an advantage (Vbase) and could fetter ChristchurchNZ's ability to complete a strategic review of a business unit.

When the Chief Executive determines there is no longer any reason to withold the information under the Act.

15

Vbase Future Direction

s7(2)(b)(ii)

Prejudice Commercial Position

Prejudice Commerical Position of Vbase

1 May 2020

16

Debt Write Off

s7(2)(b)(i)

Trade Secret

The report contains commercially sensitive information.

When the liquidation proceedings against the debtor are complete

17

Overdue Trade Debtors over $20,000 at 31 March 2018

s7(2)(a)

Protection of Privacy of Natural Persons

Publication of the names of the debtors will make collection more difficult.

When legal proceedings are commenced.

18

Christchurch City Holdings Ltd - Quarterly Report for the period January-March 2018

s7(2)(b)(ii)

Prejudice Commercial Position

To enable commercial information to be presented to support performance advice

After 2017/18 full year financial information is released

19

Capital Programme Watchlist and Major Cycleways Reporting

s7(2)(b)(ii)

Prejudice Commercial Position

Release of the information may prejudice ongoing commercial negotiations

Information on individual projects may be released when the project is complete and the Chief Executive has determined there is no longer any reason to withold the information under the Act.