Strategy and Finance Committee

Agenda

 

 

Notice of Meeting:

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

 

Date:                                     Thursday 16 June 2016

Time:                                    1.00pm

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

 

 

Membership

Chairperson

Deputy Chairperson

Members

Councillor Raf Manji

Mayor Lianne Dalziel

Deputy Mayor Vicki Buck

Councillor Jimmy Chen

Councillor Phil Clearwater

Councillor Jamie Gough

Councillor Yani Johanson

Councillor Andrew Turner

 

 

9 June 2016

 

 

 

Principal Advisor

Peter  Gudsell

General Manager Finance and Commercial

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

16 June 2016

 

Strategy and Finance Committee - Terms of Reference

 

Chair

Councillor Manji

Membership

Mayor Dalziel (Deputy Chair), Deputy Mayor Buck, 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

Delegations

Nil.


Strategy and Finance Committee

16 June 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........................................................................................ 4

B       5.       Presentation of Petitions................................................................................................ 4

B       6.       Great for Christchurch Update June 2016................................................................... 13

A       7.       Council Controlled Organisations - Half Year Financial Statements - Rod Donald Banks Peninsula Trust.............................................................................................................. 19

A       8.       Vbase Limited - Amendment to Constitution............................................................. 47

C       9.       Resolution to Exclude the Public................................................................................. 53  

 

 


Strategy and Finance Committee

16 June 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, 19 May 2016 be confirmed (refer page 5).

4.   Deputations by Appointment

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

5.   Presentation of Petitions

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


Strategy and Finance Committee

16 June 2016

 

 

 

Strategy and Finance Committee

Open Minutes

 

 

Date:                                     Thursday 19 May 2016

Time:                                    1.00pm

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

 

 

Present

Chairperson

Deputy Chairperson

Members

Councillor Raf Manji

Mayor Lianne Dalziel

Deputy Mayor Vicki Buck

Councillor Jimmy Chen

Councillor Phil Clearwater

Councillor Jamie Gough

Councillor Yani Johanson

Councillor Andrew Turner

 

 

16 May 2016

 

 

 

Principal Advisor

Peter  Gudsell

General Manager Finance and Commercial

Tel: 941 8528

 

Margaret Henderson

Committee Advisor

941 8185

margaret.henderson@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 SFCM/2016/00034

It was resolved on the motion of Councillor Manji, seconded by Councillor Chen that the apologies for lateness from Mayor Dalziel and Deputy Mayor Buck be accepted.

Councillor Chen/Councillor Johanson                                                                                                                 Carried

 

2.   Declarations of Interest

Part B

There were no declarations of interest recorded.

 

3.   Confirmation of Previous Minutes

 

Committee Resolved SFCM/2016/00035

Committee Decision

That the minutes of the Strategy and Finance Committee meeting held on Thursday, 21 April 2016 be confirmed.

Councillor Clearwater/Councillor Turner                                                                                                           Carried

 

4.   Deputations by Appointment

 

4.1       Peter Mitchell, Cavell Leitch

             Peter Mitchell from Cavell Leitch and Mike Nolan, Manager Catholic Education Office Christchurch, addressed the Strategy and Finance Committee on behalf of Roman Catholic Bishop of Christchurch regarding a remission of development contributions for the new classroom block at St Francis of Assisi Primary School at 370 Innes Road.

             An updated letter was presented to the Committee providing further information to support the Bishop's application.

 

             Following questions from the members, the Chairperson thanked Mr Mitchell and Mr Nolan on for their deputation.

 

Note the Committee considered Item 6 of these minutes at this time.

 

4.2       Jared Waddams, Helicam Pro

 

             Mr Waddams, Helicam Pro addressed the Committee regarding the amendments in the Remotely Piloted Aircraft (Drones) Policy report and in particular requesting that 5. 2. 111. c. of the policy be removed to allow Remotely Piloted Aircraft systems to fly (in accordance with the Civil Aviation Authority regulations) in the parks and reserves within four kilometres of the Christchurch International Airport and the Christchurch Hospital, Burwood Hospital, Garden City, West Melton heliports.

   The Chairperson thanked Mr Waddams for his deputation.

 

Note:  Deputy Mayor Buck arrived at the meeting at 1.59pm.

 

4.3       Mr Ian Goodwin, Ferntech

 

             Mr Ian Goodwin, Ferntech, addressed the Committee regarding the amendments in the Remotely Piloted Aircraft (Drones) Policy report requesting that 5. 2. 111. c.  and 5.2.111. d. of the policy be removed to allow Remotely Piloted Aircraft systems to fly (in accordance with the Civil Aviation Authority regulations) in the parks and reserves within four kilometres of the Christchurch International Airport and the Christchurch Hospital, Burwood Hospital, Garden City and West Melton heliports, and along the Council's legal road corridor on the coast - Scarborough Boat Ramp to Godley Head and on Banks Peninsula.

 

             The Chairperson thanked Mr Goodwin for his deputation.

 

 

5.   Presentation of Petitions

There was no presentation of petitions.

 

6.   Development Contributions Remission Application

 

Committee Comment

The Committee considered a report seeking its recommendation to the Council whether to approve or decline a request for a remission of Development Contributions from the Roman Catholic Bishop of Christchurch.

Clause 4.1 of these minutes refers to a deputation made on behalf of the Roman Catholic Bishop of Christchurch.

 

Staff Recommendations

That the Strategy and Finance Committee recommend to Council that it:

1.         Agree that the Development Contributions are payable for BCN/2014/6462 under clause 3.6.2 of the Development Contributions Policy.

 

 

 

 

 

Committee Recommended SFCM/2016/00036

Part A

Councillor Manji moved, seconded by Councillor Gough that the Committee recommend that the Council:

1          Agree that the Development Contributions are payable for BCN/2014/6462 under clause 3.6.2 of the Development Contributions Policy.

 

When put to the meeting the motion was declared lost.

 

Councillor Manji/Councillor Gough                                                                                                               Lost             

Committee Recommended SFCM/2016/00037

 Councillor Clearwater moved,  seconded by Councillor Turner:

 

That the Council approve Option 2, for the remission of Development Contributions payable for St Francis of Assisi Catholic School.

 

When put to the meeting the motion was declared carried.

 

Councillor Clearwater/Councillor Turner                                                                                                           Carried

 

Note: Councillors Manji and Gough requested that their vote against this motion be recorded.

 

7.   Remotely Piloted Aircraft (Drones) Policy

 

Committee Comment

The Committee considered a report seeking its recommendation to the Council for the approval of the Remotely Piloted Aircraft Systems (RPAs) Policy that refers to drones and model aircraft.

The Committee noted the amendments made to the policy previously considered at its March meeting and the requests from the deputations (Clauses 4.2 and 4.3 refers).

Following questions of staff the Committee considered that 2.c. of the staff recommendation could be removed as users of these areas will be required to comply with the Civil Aviation Authority regulations.

 

Staff Recommendation

That the Strategy and Finance Committee recommends that the Council:

1.         Resolves to adopt Option 1 Remotely Piloted Aircraft Policy (Attachment A).

2.         Resolves, under Clause 12(4) of the Parks and Reserves Bylaw, that all Remotely Piloted Aircraft systems, regardless of weight, MAY NOT be flown in the parks and reserves below without explicit consent (which may be granted on a case-by- case basis) from an Authorised Officer of Council:

a.         Garden and Heritage Parks, and Cemeteries.

b.         Within ten metres of an open-air public pool or playground or the boundary of any park.  

c.         Within four kilometres of the Christchurch International Airport and the Christchurch Hospital, Burwood Hospital, Garden City, West Melton heliports.

d.         The Council's legal road corridor on the coast - Scarborough Boat Ramp to Godley Head, and on Banks Peninsula.

e.         Over Council property at Te Waihora (Lake Ellesmere); Birdlings Flat; Brooklands Lagoon; Travis Wetland; Charlesworth Reserve; McCormack's Bay; South Shore Spit; Bromley Oxidation ponds; Bexley Wetland; and Linwood Paddock.

 

 

 

Committee Recommendation to Council SFCM/2016/00038

Part A

That the Council:

1.         Resolves to adopt Option 1, with the deletion of 5.2 iii (c), Remotely Piloted Aircraft Policy (Attachment A).

2.         Resolves, under Clause 12(4) of the Parks and Reserves Bylaw, that all Remotely Piloted Aircraft systems, regardless of weight, MAY NOT be flown in the parks and reserves below without explicit consent (which may be granted on a case-by- case basis) from an Authorised Officer of Council:

a.         Garden and Heritage Parks, and Cemeteries.

b.         Within ten metres of an open-air public pool or playground or the boundary of any park.  

c.         The Council's legal road corridor on the coast - Scarborough Boat Ramp to Godley Head, and on Banks Peninsula.

d.         Over Council property at Te Waihora (Lake Ellesmere); Birdlings Flat; Brooklands Lagoon; Travis Wetland; Charlesworth Reserve; McCormack's Bay; South Shore Spit; Bromley Oxidation ponds; Bexley Wetland; and Linwood Paddock.

Councillor Gough/Councillor Manji                                                                                                                      Carried

 

 

The Meeting stood adjourned from 2.41pm until 2.49pm.

 

8.   Suburban Centres Biannual Report - October 2015 to March 2016

 

Committee Comment

The Committee considered a report providing an update on the progress in implementing the nine Suburban Centre Master Plans.

 

Staff Recommendations

That the Strategy and Finance Committee:

1.         Receive the report.

 

 

Committee Resolved SFCM/2016/00039

The Committee resolved to receive the report.

Councillor Turner/Councillor Clearwater                                                                                                           Carried

 

Committee Recommendation to Council/Committee

There was no recommendation made to the Council on this item.

 

9.   Central Plains Water Trust - Draft Statement of Intent

 

Committee Comment

The Committee considered a report seeking its comments and recommendation to the Council to approve the Central Plains Water Trust draft Statement of Intent.

 

Staff Recommendations

That the Strategy and Finance Committee:

1.         Receives the draft Statement of Intent for Central Plains Water Trust;

2.         Recommends to the Council that it approves the draft Statement of Intent, including any amendments suggested by the Committee, noting that the observations made will be raised with the Central Plain Water Trust Joint Standing Committee.

 

           

 

Committee Decided SFCM/2016/00040

That the Council:

1.         Receives the draft Statement of Intent for Central Plains Water Trust;

2.         Recommends to the Central Plain Water Trust Joint Standing Committee that strengthening the monitoring of environmental effects and consideration for increasing the environmental levy be included in the Statement of Intent.

Councillor Johanson/Councillor Clearwater                                                                                                      Carried

 

Mayor Dalziel left the meeting at 3.20pm

 

10. Corporate Finance Report for the period ending 31 March 2016

 

Committee Comment

The Committee considered a report providing quarterly information relating to the Council’s treasury and debtors risks.

 

Staff Recommendations

That the Strategy and Finance Committee recommends to the Council that it receives this report.

 

 

 

 

Committee Recommendation  SFCM/2016/00041

Part A

That the Council receives this report.

Councillor Turner/Councillor Chen                                                                                                                       Carried

 

11. Performance report for the nine months to 31 March 2016

 

Committee Comment

The Committee considered a report updating it on service delivery, financial and capital works programme performance results to 31 March 2016.

 

Staff Recommendations

That the Strategy and Finance Committee recommend that Council receive this report.

 

 

 

Committee Decided SFCM/2016/00042

That the Council receive this report.

Councillor Chen/Councillor Clearwater                                                                                                              Carried

 

Mayor Dalziel returned to the meeting at 3.26pm.

 

12. Earthquake Claims Update as at 31 March 2016

 

Committee Comment

The Committee considered a report providing a final update on insurance matters relating to the 2010/2011 earthquakes as at 31 March 2016.

 The Committee requested that staff provide further information on the shortfall in the FIFA funding.

 

Staff Recommendations

That the Strategy and Finance Committee recommend to the Council:

1.         That the information in this report be received.

2.         That this report be the final quarterly Earthquake Claims Update report to Council.

 

 

 

Committee Recommended SFCM/2016/00043

Recommend to the Council:

1.         That the information in this report be received.

2.         That this report be the final quarterly Earthquake Claims Update report to Council.

Mayor/Councillor Chen                                                                                                                                            Carried

 

13. Report of the Chairperson of the Capital Endowment Fund Working Group

 

Committee Comment

The Committee considered a report providing an update on the work of the work of the Capital Endowment Fund Working Group.

 

Chair's Recommendations

That the Strategy and Finance Committee:

1.         Receive the information in the report.

 

Committee Resolved SFCM/2016/00044

The Committee resolved to receive the information in the report.

Councillor Clearwater/Councillor Gough                                                                                                           Carried

 

Committee Recommendation to Council

There was no recommendation to the Council on this item.

 

14  Resolution to Exclude the Public

 

Committee Resolved SFCM/2016/00045

That at 3.45pm the resolution to exclude the public set out on pages 141 to 142 of the agenda be adopted.

Councillor Chen/Councillor Gough                                                                                                                         Carried

 

The public were re-admitted to the meeting at 3.48pm.

 

   

Meeting concluded at 3.48pm.

 

CONFIRMED THIS 16TH DAY OF June 2016

 

Councillor Raf Manji

Chairperson

   


Strategy and Finance Committee

16 June 2016

 

 

6.        Great for Christchurch Update June 2016

Reference:

16/399651

Contact:

Chris Wallace

chris.wallace@ccc.govt.nz

941-5248

 

 

1.   Purpose of Report

1.1       This report provides a 2016 financial year end summary of the progress of the Great for Christchurch transformational change programme. The outputs and benefits delivered so far are discussed as well as the next steps for the programme.

 

2.   Staff Recommendations

That the Strategy and Finance Committee:

1.         Receive the information in this update report.

 

 

3.   Key Points

Background

3.1       'Great for Christchurch' is an organisation transformational change programme.  It was formally launched in January 2015.  The goals of the Great for Christchurch programme are to: (1) improve our organisational performance for the benefit of customers, citizens and communities; (2) deliver tangible efficiency gains; and (3) build capability with a skilled workforce who are engaged and motivated. 

3.2       Council, through the 2015 Long Term Plan, resolved for the Chief Executive to find approximately $40 million of operational savings over the next three years.  These savings – plus the pre-existing annual 2 percent operating expense reductions - are already factored into future year budgets (i.e. as operating budget reductions).  Savings are being delivered, in part, through the efficiency targets of the Great for Christchurch programme.   

3.3       As we approach the end of the 2016 financial year (the first year of the current Long Term Plan) it is timely to formally update Council on the progress of the Great for Christchurch programme, and the planned next steps.

Great for Christchurch Programme Structure

 

3.4       There are three individual workstreams within the Great for Christchurch programme; (1) procurement; (2) middle and back office activities; and (3) customer, community, operating model enabled by IT.  The focus, methods, and outcomes from each workstream are different, however, collectively they contribute to the goals described in paragraph 3.1.

3.5       The Procurement workstream is focussed on supplier and contract management and is predominantly driving efficiency gains (operational savings) and effectiveness gains (better service, no additional cost). 

3.6       The Middle and Back Office workstream is reviewing activities performed across many of the traditional areas of Council (such as water and transport provision).  Many of the activities in the Middle and Back Office workstream have not been comprehensively reviewed by the Christchurch City Council due to the necessary focus on earthquake recovery for the last five years, and reviews are therefore timely.  This workstream also works closely with other territorial authorities on regional issues.  Many of the activities under review are legislatively required by Section 17a of the Local Government Act.       

3.7       The Customer, Community, Operating Model enabled by IT (CCOMIT) programme is modernising our service provision.  The projects within the workstream are designed to set us up in a way that is engaging into the future for our customers and citizens, while also being effective and efficient. 

3.8       The Great for Christchurch programme is mandated by the Chief Executive, has an executive sponsor (Brendan Anstiss), with each of the workstreams sponsored by individual Executive Leadership Team members (Anne Columbus, Peter Gudsell, and Peter Sparrow, respectively).  The programme is supported by a small portfolio team (with two staff) and operates formal project management disciplines.  All workstreams and projects are appropriately scoped and documented and project change control mechanisms are applied.  At a management level the programme is governed by a steering group, including all members of the Executive Leadership Team.  We have also benefited from earlier engagement with PWC who had undertaken a comprehensive review across all Council activities that assisted us in prioritising areas for investigation.  Similar reviews of other large New Zealand Councils, conducted by a range of consultancies, have also been reviewed for learnings.  Where necessary, formal decisions from Council are sought.  Informal updates have also been provided to Councillors and a large number of workshops undertaken on specific projects.

3.9       All of the costs of the Great for Christchurch programme are required to be self-funded - that is, the programme costs are added to the saving requirements (making the overall savings target approximately $43 million over three years).  The savings targets are phased at approximately $6 million year one (2016 financial year); $15 million year two (2017 financial year); and $22 million year three (2018 financial year). 

3.10    We are on track to exceed the Great for Christchurch savings target for 2016.  Comment on the achievability of future year targets are discussed in the final section of this report.

3.11    The Great for Christchurch programme was separate to, but interfaced closely with the organisational review that occurred in 2015.  The organisational review - Fit for Future - ensured that we have a modern and right-sized management arrangement to reflect the changing organisation.  There is some overlap in terms of the efficiency gains from both activities (the Great for Christchurch transformational change programme and the Fit for Future organisational structural review) and this has been transparently managed to ensure there is no unintended duplication of benefits or costs.  The draft 2016 Annual Plan is forecasting ongoing savings of approximately $3.8 million for the next three years from the Fit for Future organisational review. 

3.12    There are also a large number of organisational improvement activities that are occurring outside the formal Great for Christchurch programme.  This is explicitly intended and reflects a growing capacity and capability within the Christchurch City Council organisation to review and improve our practices.

3.13    The following sections provide further detail on the outputs, benefits, and next steps for each of the three workstreams within the Great for Christchurch programme.            

Workstream 1: Procurement: Project Outputs and Benefits

3.14    The procurement workstream has focused on ensuring greater value for money through all stages of the Council's procurement cycle.  This is ensuring that Council is a smart purchaser of services and appropriately leverages its size and market advantages.  It is also ensuring that providers are accountable to the Council for the contractual services they have committed to, and equally, that the Council has robust and transparent commercial processes that providers and potential providers understand and can deliver to. 

3.15    In terms of tangible workstream outputs, through a combination of improved go-to-market (new contracts) and smart renegotiation (of existing contracts), the procurement project of smart contracting has delivered in excess of $4 million in cash savings in the period through to April 2016.    These savings have been achieved on the basis of delivering at least, “the same level of service, for less” and more often than not will generate multi-year benefit to Council.

3.16    Two other projects within the procurement workstream are associated with driving positive behavioural change within the organisation; these are, reviewing contractors, and reducing discretionary spend.  These two projects are on track to save approximately $1.4 million this financial year through behavioural changes that have been put in place by Council staff and managers. 

3.17    In total, the procurement workstream is on track to deliver in excess of $6 million savings to Council operations for the 2016 financial year. 

Procurement workstream: Next Steps

3.18    The procurement workstream has exceed original expectations and targets for the 2016 financial year and the Great for Christchurch steering group has approved continued investment in the workstream to achieve stretch financial targets. 

3.19    To ensure success in future financial years, major work is underway to build and embed the 2017 financial year contract negotiation pipeline.  This will ensure that we have a regular and manageable conveyor belt of prioritised contracts ready for renegotiation.  At the same time, we expect that our improved contract management practices through a centralised and dedicated team will deliver performance and effectiveness benefits both to Council and for our providers.  We will continue to rationalise the use of contractor resources to backfill staff vacancies (instead using fixed term employees).  Finally, we will continue to examine discretionary spending, but have already factored existing savings into future budgets and do not expect further substantive savings in this area without degrading performance or outcomes. 

Workstream 2: Middle and Back Office: Project Outputs and Benefits

3.20    This workstream commenced in October 2015 and is tasked with reviewing significant and strategic areas of Council operations to improve performance and effectiveness.  It is not explicitly intended to deliver financial savings and this is not a main driver for activity.

3.21    The middle and back office workstream has completed an effectiveness review of governance arrangements of Christchurch City Holdings Limited (CCHL). Council has now adopted the majority of the recommendations from this review. 

3.22    In late 2015, Council received the Visitors Strategy and agreed in principle to the concept of a converged model to deliver this strategy.  A similar implementation pathway had also been identified during the Great for Christchurch investigation stage.  An options paper was subsequently prepared recommending how best to align tourism, events and economic development (TEED) activities.  The concepts in this paper have been discussed at several informal Council meetings and have now progressed through full Council approval.  As noted above, the purpose of this project has been to improve the performance and effectiveness of the various entities - net cost savings are not forecast from this activity (and any gross savings will be reinvested to further improve outcomes). 

3.23    A project to review Council's property holdings involved working with the Property Consultancy Team within Council.  As a consequence, 89 properties that have limited present or future operational use by the business unit currently holding them were identified, totalling a mid-2015 Book Value of $51.3 million. The project assisted in expediting current processes and identifying as many properties as possible for Community Board review in 2016.  The outcomes of this process will be reported back to Council in due course.   It is expected that Community Boards will identify some alternative uses for some properties.  Any residual properties will then enter a formal disposal process, with proceeds to Council.  A target of $30m was included in the LTP over a five year period for revenue from surplus property sales.

3.24    An infrastructure Strategic Assessment has been undertaken to investigate whether or not there is a case for change in the delivery of city infrastructure services.  In scope were the business areas of the three waters (water supply, wastewater, and stormwater and land drainage) and transport. Having completed the project for Christchurch City, the benefits are currently being assessed for applying this work at a regional level.  This has been reported to and supported by the Mayoral Forum and the City Council is now working with the other regional territorial authorities on this work.  Any decisions required related to this work will be formally matters for the Council to decide.  The purpose of this work is to improve the future service provision in these two critical areas, not to reduce costs, per se.   

3.25    The middle and back office workstream is also an excellent example of how the Council organisation is increasing its capability and upskilling staff. Several of the project team are now trained in the use of Investment Logic Mapping and have been asked to share their skills by educating others in the business. Training in the Better Business Case model has also been completed by the project team and is being actively used for example, with any transport projects requiring New Zealand Transport Authority (NZTA) funding.  We have received positive feedback from other local territorial authorities on our contribution to wider regional issues (such as water and transport provision). 

3.26    Some financial savings have already been realised by the middle and back office workstream through process efficiencies and greater insourcing of legal services for example.  Areas for future potential financial savings will require Council decision making, and in some cases, are also contingent on wider changes across the region or sector. 

Middle and Back Office: Next Steps

3.27    We are now starting to consider the potential second tranche of priority projects within the middle and back office workstream.  These projects, which are currently being scoped by the programme staff, include investigating water use monitoring to reduce consumption (not revenue gain – this project will work closely with the appropriate zone committees), increased commercialisation opportunities at Council facilities, and increased sales of commercial valuable data.  As with the first tranche of activities within the middle and back office workstream, some of the activities soon under consideration will likely also require formal Council decisions to implement or not.  These decisions of Council will ultimately impact on the achievement of savings and other benefits, and we will ensure that the implications of decisions are clear to Council to aid their decision making. 

Workstream 3: Customer, Community, Operating Model enabled by IT: Outputs and Benefits

3.28    The Customer, Community, Operating Model Enabled By IT (CCOMIT) team has completed a significant body of work in helping to define the future operating model for the council organisation, which has then been used by IT to design a roadmap for future investments to ensure that the Council has modern operating systems and tools that will enhance citizen and customer experiences.  These pieces of work represent significant investment, but means that we can progressively transition to digital platforms for many of our areas of business (e.g. paying and interacting with Council, receiving personalised notifications, managing our mobile work force).  Collectively, this approach has been titled "My Council" and reflects a modern and agile way of delivering services in the way that customers and citizens can choose.  The end-state for My Council will be a personalised interface allowing customers to seamlessly access a full range of online Council services supported by the physical experience described in the Citizen Hub and Omni-channel strategies (see following sections).  This will mean that customers can choose to interact online, in- person, and via phone – all with real-time and self-service options.  It follows similar platforms now launched by many private business offerings (for example, banks, telecommunication companies, insurance, airlines), but which are still in their infancy in Council service provision.

3.29    Further initiatives are also underway examining the processes around the Council leave policy for staff, and completing an end-to-end process mapping of the building consent process.  Through better understand the "voice of the customer" (and the pain and gain points) these projects have significant opportunity to improve the service for staff and customers respectively. 

3.30    The CCOMIT workstream is also working to implement improvements in our physical service provision.  The Citizen Hub Strategy was produced and endorsed by the Executive Leadership Team and is being used to influence the range and type of service offerings that are being promoted to Council for your decision.  The strategy is currently being piloted at Te Hāpua: Halswell Centre, where most Council services can be accessed from a single counter, meaning no wrong door for Council customers.   We are continue to work with Community Boards over future implementation decisions. 

3.31    An Omni-channel strategy is also in development to provide a consistent approach across our Council contact centres (Fingertip Library, Building Inspections, and the main Council contact centre). This strategy clarifies the accountability for levels of service, standards, policies, and practices across the various phone contact centres.

3.32    The Smart Cities project area was added to the CCOMIT scope at the end of 2015, funded in part by Land Information New Zealand (LINZ) and Council.   A memorandum of understanding was signed between NEC (the technology partner for the LINZ programme of work) and the Mayor in early 2016 and this has set the scene for a strong collaboration to trial new sensor technology. Another strong component of the Smart Cities programme will be open data sharing by Council and among public and private sector organisations, and the display of that data for various audiences (e.g. operational, public, and elected members) through dashboard presentation. The project team (including several external advisors from the business and start-up community) has worked towards the approval of five Proof-of-Concept projects by the Smart Cities Governance Group (led by LINZ), and funding has now been released with preparatory work underway.

3.33    Most of the projects in the CCOMIT workstream will deliver cost avoidance or enhanced performance, as opposed to cost savings.  The necessary technology investments to modernise our work practices are being factored into our existing capital budgets. 

Customer, Community, Operating Model enabled by IT: Next Steps

3.34    A significant body of work is underway within the CCOMIT workstream and the Executive Leadership Team will need to prioritise and coordinate the work to ensure that it is delivered in manageable packages.  It will not be possible to leap from a paper-based system to self-service mobile work platform for example, without significant process and business changes, in addition to technology and customer experience understandings.  The MyCouncil vision will be achieved over a period of years to avoid mis- or over-investment in redundant technology. 

3.35    We will also be formally reporting to Council on the proof of concept trials for the Smart Cities work. 

Overall Great for Christchurch Programme Risks, Mitigations and Opportunities

3.36    The major risks commonly managed through transformational change programmes, including the Great for Christchurch programme, are change fatigue and ensuring long-term benefits realisation.  Both of these two risks are managed by the steering group and actively monitored on at least a monthly basis.  Appropriate mitigations are in place and to date have been effective in preventing these risks becoming issues.  We are actively beginning to bed-in change and improvement activities within regular work programmes and organisation business units.  As this occurs the project focus will take more of a background supportive role.  

3.37    As has been reported to councillors through the Annual Plan process, the cumulative impact of operational budget reductions is starting to strain our delivery capacity, and unless carefully managed, will ultimately constrain opportunities for improved services.   While the organisation has been successful to date in realising financial gains without adversely affecting service provision, we will need to continually monitor this situation and will need to be disciplined in focusing on a limited set of agreed priorities.  We are facing cost pressures through inflation, wage increases, and population driven service demands – and this is beginning to create an imbalance against reduced operating budgets.  We will continue to formally report on our financial position, risks and opportunities, through our performance reporting framework to the Strategy and Finance Committee.   

3.38    The financial savings targets do - quite appropriately - represent stretch targets for the organisation.   However, it is also important to note there will be changes in the achievability of the overall targets based on Council decisions.  For example, a decision to dispose or retain a particular property, or equally, a decision to request a further report on a low priority issue, both have fiscal consequences which need to be balanced against achievement of desired non-financial outcomes by Council.  

3.39    Finally, and perhaps most importantly, resident satisfaction with Council services is improving as a result of the changes we have made, however, this increase remains fragile and could easily be undermined if we inadvertently push too hard for savings.  Our focus must remain on doing the right thing for our customers, citizens, and communities of Christchurch.

Overall Great for Christchurch Programme: Next Steps

3.40    At an Executive level within the organisation we will continue to examine the way in which we deliver to Council expectations and requirements.  We will continue to make amendments and improvements to the way we deliver services and how we structure activities.  The Great for Christchurch programme is now focused on integrating future opportunities within regular council business practices – with the gains “just being the way we work”, rather than as a result of a special project. The programme will move towards supporting activities happening across council rather than leading activities. 

3.41    At an organisational level it is often not possible to "continually change" and we will therefore look to lock in improvements and gains from Great for Christchurch before consolidating and then re‑launch the next transformational change initiative.  We will ensure that Council are well engaged in these organisation initiatives and that they continue to deliver to the governance expectations as resolved by Council.

 

 

Attachments

There are no attachments to this report.

 

Signatories

Author

Claire Adams

Business Analyst

Approved By

Chris Wallace

Brendan Anstiss

Portfolio Director - Great for Christchurch

General Manager Strategy and Transformation

  


Strategy and Finance Committee

16 June 2016

 

 

7.        Council Controlled Organisations - Half Year Financial Statements - Rod Donald Banks Peninsula Trust

Reference:

16/394519

Contact:

Patricia Christie

Patricia.christie@ccc.govt.nz

941 8113

 

 

1.   Purpose and Origin of Report

Purpose of Report

1.1       This report presents for review the financial statements for the six months to 31 December 2015 for Rod Donald Banks Peninsula Trust (RDBPT) which is a Council Controlled Organisation (CCO).

Origin of Report

1.2       The origin of this report is the Local Government Act 2002, which requires that the financial statements of CCOs be provided to the shareholder/stakeholder within two months of the end of the first half of the financial year (29 February).

2.   Significance

2.1       The decision in this report is 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 the Council that it receive the half-year report for Rod Donald Banks Peninsula Trust.

 

 

4.   Key Points

4.1       The Rod Donald Banks Peninsula Trust’s financial statements for the six months to 31 December 2015 is attached for information.

4.2       RDBPT is required under section 66 of the Local Government Act 2002 to submit half year reports within two months of the end of the first half of the financial year. This requirement has not been met for the half year ended 31 December 2015.

4.3       A half year report must contain the information required by each organisation's Statement of Intent (SOI). For the above organisation this includes financial statements prepared in accordance with New Zealand accounting standards and generally accepted accounting policies.

 

5.   Context/Background

Rod Donald Banks Peninsula Trust

5.1       RDBPT was formed by the Council with the objective of promoting sustainable management and conservation of Banks Peninsula’s natural environment and associated recreation.

5.2       RDBPT has been very active in the six months to 31 December 2015 with the following projects:

·   Summit Walkway

·   Purple Peak Curry Reserve

·   Banks Peninsula Walking Festival

·   Panama Reserve land purchase

·   Walking Maps and Brochures and website

·   Lyttelton Head to Head Walkway

·   Support for Orton Bradley Park (OBP)

·   Support for Banks Peninsula Conservation Trust (BPCT)

·   Paihere GeoPark

·   Le Bons Bay Environment Centre.

5.3       For the six months to 31 December 2015, RDBPT made a net deficit of $44,401 compared to a profit of $3,430 for the six months to 31 December 2014. The reduced profit is mainly due to increased professional fees ($18,055), increased other expenses ($17,534) and reduced interest revenue ($10,528), and is slightly offset by an increase in other revenue ($5,000).

5.4       RDBPT's net deficit for the six months was $24,342 worse than its SOI targets. Operational expenditure is $43,312 higher than forecast because of an increase in management fees to include management expenses for two major projects (Purple Peak Curry Reserve and Summit Walkway) and the additional cost of running the Trust's tramping hut. Committed grants expenditure was $15,125 higher than forecast due to the extension of its grant to the Banks Peninsula Conservation Trust and an increase in the annual grant amount. These unfavourable movements are partially offset by a $13,704 decrease in minor projects expense and a $20,392 increase in revenue.

5.5       RDBPT is on track to achieve all of its non-financial performance targets.

 

 

Attachments

No.

Title

Page

a  

Rod Donald Banks Peninsula Trust Half Year Report

22

 

 

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

Daisy Yu

Manager External Reporting & Governance

Financial Accountant

Approved By

Diane Brandish

Peter Gudsell

Head of Financial Management

General Manager Finance & Commercial

  


Strategy and Finance Committee

16 June 2016

 

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Strategy and Finance Committee

16 June 2016

 

 

8.        Vbase Limited - Amendment to Constitution

Reference:

16/605577

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 recommend to Council that it approve an amendment to the Vbase Limited (Vbase) company constitution.

Origin of Report

1.2       This report is staff generated to correct an inconsistency between the Vbase constitution and the Local Government Act 2002 (LGA) requirements.

2.   Significance

2.1       The decision(s) in this report is of a 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 decision on 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 recommend to Council that it:

1.         Approve the amendment of the Vbase Limited constitution by:

a.         deleting existing clauses 11.1 to 11.6;

b.         inserting a new clause 11.1 as follows:

“11.1      Statement of intent: The Company shall have a statement of intent which complies with the Local Government Act 2002 or any subsequent amending or replacing legislation”; and

c.         re-numbering the existing clause 11.7 to clause 11.2

2.         Authorise the General Manager Finance & Commercial to sign the shareholders resolution authorising this change on the behalf of Council.

 

 

 

4.   Key Points

4.1       An inconsistency has been identified between the Vbase constitution and the requirements of a council controlled organisation under the LGA.

4.2       To correct this inconsistency, an amendment to the constitution of Vbase is proposed as outlined in paragraph 5.5 below.

4.2.1   This amendment has been discussed by the Vbase board and they are supportive of it.

4.2.2   A special resolution of the shareholder is required to approve the change. This is included as Attachment A.

 

 

5.   Context/Background

5.1       As part of an internal audit review of subsidiary governance processes undertaken by Council it was identified that the Vbase constitution needed to be amended as it referred to the requirement for a Statement of Corporate Intent under section 128 of the Companies Act 1993.

5.2       Vbase as a council controlled organisation is required under section 64 of the LGA to have a statement of intent. While a statement of corporate intent and statement of intent are similar documents, it is considered more appropriate for the company constitution to refer to the LGA requirement.

5.3       Anderson Lloyd were engaged by Council to draft the amendment to the constitution and the Vbase shareholder resolution to agree the change.

Proposed Amendment

5.4       The existing clauses 11.1 to 11.6 of the Vbase constitution are copied below:

5.5       To prevent future constitution changes with changes in the LGA is was considered prudent to simply require Vbase to meet its reporting obligations as laid out in the LGA. As a result, the following was proposed.

5.5.1   Delete the existing clauses 11.1 to 11.6.

5.5.2   Insert a new clause 11.1 as follows:

"11.1  Statement of intent:  The Company shall have a statement of intent which complies with the Local Government Act 2002 or any subsequent amending or replacing legislation."

5.5.3   Re-number the existing clause 11.7 to clause 11.2.

5.6       The Vbase board considered this proposed amendment at its May board meeting and were supportive of the change.

Implementing Change

5.7       To effect a change in the Vbase constitution, a special resolution of the shareholder (Council) is required.

5.8       The shareholder resolution is attached as Attachment A.

 

Attachments

No.

Title

Page

a  

Shareholder resolution to amend constitution

51

 

 

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

Patricia Christie

Manager External Reporting & Governance

Approved By

Diane Brandish

Peter Gudsell

Head of Financial Management

General Manager Finance & Commercial

  


Strategy and Finance Committee

16 June 2016

 

 

 


 


Strategy and Finance Committee

16 June 2016

 

 

9.    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

16 June 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

10

Public Excluded Strategy and Finance Committee Minutes - 19 May 2016

 

 

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

 

11

Christchurch City Holdings Limited - Quarter 3 Performance Report

s7(2)(b)(ii), s7(2)(h)

Prejudice Commercial Position, Commercial Activities

The report provides information about the operations of the group companies which could negatively impact their commercial position if publicly available

When events covered in the report are disclosed publicly by the individual companies

12

Development Christchurch Limited Update

s7(2)(h), s7(2)(i)

Commercial Activities, Conduct Negotiations

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

At the conclusion of negotiations

13

Fee Write Off

s7(2)(h)

Commercial Activities

This relates to commercial activities and agreements entered into by the parties.

On the agreement of all parties