Strategy and Finance Committee

Agenda

 

 

Notice of Meeting:

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

 

Date:                                     Thursday 21 January 2016

Time:                                    1.00pm

Venue:                                 Committee Room 1, Level 2, Civic Offices,
53 Hereford Street, Christchurch

 

 

Membership

Chairperson

Deputy Chairperson

Members

Raf Manji

Mayor Lianne Dalziel

Deputy Mayor Vicki Buck

Councillor Jimmy Chen

Councillor Phil Clearwater

Councillor Jamie Gough

Councillor Yani Johanson

Councillor Andrew Turner

 

 

15 January 2016

 

 

 

Principal Advisor

Peter  Gudsell

Chief Financial Officer

Tel: 941 8528

 

Margaret Henderson

Committee Advisor

941 8185

margaret.henderson@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:
www.ccc.govt.nz/Council/meetingminutes/agendas/index

 


Strategy and Finance Committee

21 January 2016

 

Strategy and Finance Committee - Terms of Reference

 

Chair

Councillor Manji

Membership

Mayor Dalziel (Deputy Chair), Deputy Mayor Buck, Cr Manji (Deputy Chair), Cr Chen, Cr Clearwater (as Chair of Infrastructure, Transport and Environment Committee), Cr Gough, Cr Turner (as Chair of Communities, Housing and Economic Development), Cr Johanson

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

To be separately considered

Reports To

Council

 

Responsibilities

·         Review as appropriate and make recommendations to the Council on Financial

·         Strategy  and  Performance,  Investment  and  Borrowing,  Insurance  matters  and all Council Controlled Organisations

·         Managing  relationships  with  Canterbury  Development  Corporation  (CDC)  and Christchurch and Canterbury Tourism (CCT) and other major organisations

·         Developing policy and strategy in relation to long term plan and other activities as listed above

·         Monitoring earthquake recovery related to the committees specified activities

·         Considering   recommendations   from   Council’s   Subcommittees,   Community

·         Boards,  the  public,  stakeholders  and  providers  in  relation  to  strategy  and finance planning, delivery and operation

·         Making  decisions  with  regard  for  the  requirements  of  Sections  76  –  81  of  the Local Government Act 2002 where it has the authority from Council to do so, or recommendations to Council where a Council decision is required.

 

Long Term Plan Activities

·         Strategic Planning and Monitoring of

­          central city planning and policy

­          land use planning (including financial and planning assumptions)

­          urban development strategy (including the Land Use Recovery Plan)

­          urban design planning and policy

­          urban regeneration planning and policy; and

­          other strategic issues

·         Performance management and reporting

·         Development contributions

·         Transition process with the Canterbury Earthquake Recovery Authority

·         Manage Iwi and Maori relationships

·         Plus

­          Monitoring and reporting on anchor projects

­          Monitoring and review of CERA recovery programmes

­          External liaison with central government agencies, CERA, the Earthquake Commission and the Insurance community

­          Council Controlled organisations

­          Liaison with EQC and Insurance companies

 


Strategy and Finance Committee

21 January 2016

 

Part A        Matters Requiring a Council Decision

Part B         Reports for Information

Part C         Decisions Under Delegation

 

 

TABLE OF CONTENTS

 

C          1.       Apologies.......................................................................................................................... 4

B          2.       Declarations of Interest................................................................................................... 4

C          3.       Confirmation of Previous Minutes................................................................................. 4

B          4.       Deputations by Appointment...................................................................................... 10

B          5.       Presentation of Petitions.............................................................................................. 10

C       6.       2015 Annual Reports for Council Controlled Organisations: Riccarton Bush Trust .11

A       7.       Christchurch City Holdings Ltd - Council Controlled Trading Organisations Reporting Against Statement of Intent Targets........................................................................... 53

C       8.       Resolution to Exclude the Public................................................................................. 64  

 

 


Strategy and Finance Committee

21 January 2016

 

 

1.   Apologies

At the close of the agenda no apologies had been received.

2.   Declarations of Interest

Members are reminded of the need to be vigilant 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 Strategy and Finance Committee meeting held on Thursday, 17 December 2015 be confirmed.

 


Strategy and Finance Committee

21 January 2016

 

 

 

 

 

 

 

 

 

 


Strategy and Finance Committee

21 January 2016

 

 

4.   Deputations by Appointment

There were no Deputations by Appointment at the time the agenda was prepared. 

5.   Presentation of Petitions

There were no Presentation of Petitions at the time the agenda was prepared.  

  


Strategy and Finance Committee

21 January 2016

 

 

6         2015 Annual Reports for Council Controlled Organisations: Riccarton Bush Trust

Reference:

15/1556265

Contact:

Patricia Christie

Patricia.christie@ccc.govt.nz

941 8113

 

 

1.   Purpose and Origin of Report

Purpose of Report

1.1       The purpose of this report is for the Strategy and Finance Committee to receive the annual report of the Riccarton Bush Trust, a Council Controlled Organisation (CCO), for the year ended 30 June 2015.

Origin of Report

1.2       This report is staff generated to fulfil the requirements of the Local Government Act 2002 which require CCOs to submit an annual report to the Council within three months after the end of the financial year. The annual report of Riccarton Bush Trust (RBT) was submitted to Council on 14 December 2015, this was after the legislative requirement due to delays in obtaining the audit opinion. This delay resulted from obtaining additional certainty regarding the insurance receivable recognised at 30 June 2015 and the completion of the Report from the Chairman and Manager. Additional certainty on the insurance receivable relating to Riccarton House was achieved through the Council providing the Trust with a guarantee that the funds would be received.

2.   Significance

2.1       The decision(s) 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 Council and the community.

2.1.2   The community engagement and consultation outlined in this report reflect the assessment.

 

3.   Staff Recommendations

That the Strategy and Finance Committee:

1.         Recommend to Council that it receive the 2015 Annual Report of the Riccarton Bush Trust.

 

 

4.   Key Points

4.1       Riccarton Bush Trust - (Attachment A)

4.1.1   RBT was formed by an Act of Parliament in 1914. The Trust administers Riccarton House and its 5.41 hectares of grounds together with a 6.373 hectare native bush remnant gifted by the Deans family to the people of Canterbury. Part of Riccarton House is licensed to a commercial caterer and is used as a restaurant and event centre.  Riccarton House reopened after its earthquake repairs on 20 August 2014.

4.1.2   RBT had a total comprehensive expense for the year to 30 June 2015 of $3,131 compared to revenue of $4.6 million in 2014. The significant decrease is the result of the 2014 result including:

·     $5.3 million revaluation increase of Riccarton House;

·     $0.4 million of revenue from the reversal of prior year asset impairments; and

·     $1.4 million of earthquake repair expenses.

4.1.3   The earthquake repairs to Deans Cottage and the Ranger’s House are yet to be completed.

4.1.4   RBT received an unqualified audit opinion on its financial statements from Audit New Zealand.

4.1.5   RBT's financial performance did not meet its net SOI target. The SOI target was an operating deficit before depreciation of $4,000 whereas the actual result was a deficit of $26,541, with both revenue and expenses being higher than planned. Revenue was $18,142 higher than expected due to the receipt of an additional subsidy from WINZ which partially offsets the increase in the wages. Operating expenses were $40,683 higher than planned due to increases in wages, insurance premiums on Riccarton House and accounting fees.

4.1.6   RBT has meet two of its nine operational targets, a further target was achieved during the year but later than originally targeted. Of the six that were not achieved at 30 June 2015, five have been achieved by the time of this report or were no longer required.

 

5.   Context/Background

5.1       An annual report must contain the information that is necessary to enable an informed assessment of the operations of the CCOs to be made, including audited financial statements and an auditor’s report on those financial statements, and the performance targets and other measures by which performance was judged.

 

 

Attachments

No.

Title

Page

a  

Riccarton Bush Trust 2015 Annual Report

14

 

 

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

Patricia Christie

Diane Brandish

External Reporting & Governance Manager

Unit Manager - Corporate Finance

Approved By

Diane Brandish

Peter Gudsell

Unit Manager - Corporate Finance

Chief Financial Officer

  


Strategy and Finance Committee

21 January 2016

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Strategy and Finance Committee

21 January 2016

 

 

7         Christchurch City Holdings Ltd - Council Controlled Trading Organisations Reporting Against Statement of Intent Targets

Reference:

16/5278

Contact:

Darryl Griffin

darryl.griffin@ccc.govt.nz

6436

 

 

1.   Purpose of Report

1.1       The purpose of this report is to review the performance of the subsidiary companies, and monitored entity Canterbury Development Corporation, for the 2015 financial year against the objectives set out in their Statements of Intent (SoIs).

 

2.   Staff Recommendations

That the Strategy and Finance Committee:

1.         Receive the information in the Christchurch City Holdings Ltd - Council Controlled Trading Organisations Reporting against Statement of Intent Targets report.

 

 

 

 

Attachments

No.

Title

Page

a  

CCTO reporting against Statement of Intent Targets - Bob Lineham, Chief Executive Christchurch City Holdings Ltd

54

 

 

Signatories

Author

Darryl Griffin

Manager Council Secretariat

Approved By

Karleen Edwards

Chief Executive

  


Strategy and Finance Committee

21 January 2016

 


 


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Strategy and Finance Committee

21 January 2016

 

 

8 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:


Strategy and Finance Committee

21 January 2016

 

 

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

9

Confirmation of Minutes – Strategy and Finance Committee Meeting of 17 December 2015

 

 

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

 

10

Update on Development Christchurch Limited (DCL)

s7(2)(b)(ii)

Prejudice Commercial Position

To allow the information to be presented to the Council without prejudicing negotiations and commercial activities contained in the report.

At the conclusion of the negotiations