Christchurch City Council

Supplementary Agenda

 

 

Notice of Meeting:

An ordinary meeting of the Christchurch City Council will be held on:

 

Date:                                     Tuesday 10 October 2017

Time:                                    9.30am

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

 

 

Membership

Chairperson

Deputy Chairperson

Members

Mayor Lianne Dalziel

Deputy Mayor Andrew Turner

Councillor Vicki Buck

Councillor Jimmy Chen

Councillor Phil Clearwater

Councillor Pauline Cotter

Councillor Mike Davidson

Councillor David East

Councillor Anne Galloway

Councillor Jamie Gough

Councillor Yani Johanson

Councillor Aaron Keown

Councillor Glenn Livingstone

Councillor Raf Manji

Councillor Tim Scandrett

Councillor Deon Swiggs

Councillor Sara Templeton

 

 

6 October 2017

 

 

 

Principal Advisor

Dr Karleen Edwards

Chief Executive

Tel: 941 8554

 

Christopher Turner-Bullock

Committee Advisor

941 8233

christopher.turner@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.
Watch Council meetings live on the web:
http://councillive.ccc.govt.nz/live-stream

 


Council

10 October 2017

 

 


Council

10 October 2017

 

TABLE OF CONTENTS

 

25.     Resolution to Include Supplementary Reports...................................................................... 4

STAFF REPORTS

26.     Statement of Proposal for Consultation................................................................................. 5

20.     Resolution to Exclude the Public........................................................................................... 15


Council

10 October 2017

 

 

25 Resolution to Include Supplementary Reports

1.       Background

1.1          Approval is sought to submit the following reports to the Council meeting on 10 October 2017:

26.   Statement of Proposal for Consultation

27.   Community Reslience Partnership Fund (Public Excluded)

1.2          The reason, in terms of section 46A(7) of the Local Government Official Information and Meetings Act 1987, why the reports were not included on the main agenda is that they were not available at the time the agenda was prepared.

1.3          It is appropriate that the Council receive the reports at the current meeting.

2.       Recommendation

2.1          That the reports be received and considered at the Council meeting on 10 October 2017.

26.   Statement of Proposal for Consultation

27.   Community Reslience Partnership Fund (Public Excluded)

 

 


Council

10 October 2017

 

 

26.    Statement of Proposal for Consultation

Reference:

17/1057710

Contact:

Ian Thomson

ian.thomson@ccc.govt.nz

941 8999

 

 

1.   Purpose and Origin of Report

Purpose of Report

1.1       To enable the Council to consider and approve a Statement of Proposal for consultation on a proposal to contribute to the reinstatement of the Christchurch Cathedral;

1.2       The Council has resolved to undertake a special consultative procedure before making a final decision on the proposal.

Origin of Report

1.3       The Council has approved in principle a grant of $10 million towards the capital cost of reinstating the Cathedral (CNCL/2017/00149);

1.4       The approval is subject to public consultation, to be undertaken by the special consultative procedure contained in the Local Government Act 2002 (LGA 2002).

2.   Significance

2.1       The future of the Cathedral has generated a great deal of interest in the city, with strong views for and against reinstatement.  Any decision by the Council to provide financial support for that option will be significant in terms of the Council’s Significance and Engagement Policy;

2.2       For this reason the Council will obtain and consider the views and preferences of the community before making its decision.  The special consultative procedure is being used for this purpose.

 

3.   Staff Recommendations

That the Council:

1.         Notes the decision of the Anglican Synod on 9 September 2017 to reinstate the ChristChurch Cathedral, and that this decision triggers a special consultative procedure for the proposed Council grant towards the capital cost of reinstatement.

2.         Receives the staff report.

3.         Agree on the mechanism by which the proposed grant will be funded, should the Council approve the proposed grant.

4.         Adopts the Statement of Proposal attached to the report, noting that the agreed funding mechanism will be included.

5.         Authorises the General Manager Financial and Commercial to approve any non-material changes that may be required to the document before it is made available to the public.

6.         Approves the consultation process contained in the Statement of Proposal.

7.         Appoints a Hearings Panel to hear oral submissions on the proposal.

 

 


 

4.   Key Points

4.1       The Council has chosen to use the special consultative procedure(s.87)(1)(b) of the LGA 2002);

4.2       This requires the Council to prepare and adopt a Statement of Proposal that includes a statement of the reasons for the proposal, an analysis of the reasonably practicable options identified, and any other information the Council considers relevant (s.87(3));

4.3       The Council must ensure that the following is publicly available (s.83(b):

4.3.1   the Statement of Proposal;

4.3.2   how people interested in the proposal will be provided with an opportunity to present their views to the Council;

4.3.3   the period available for presenting views on the proposal (must be at least one month);

4.4       The Council is also required to provide an opportunity for people to present their views in a manner “that enables spoken (or NZ sign language) interaction” with the Council or its delegated representatives (s.83(d));

4.5       The Legal Services Unit advises that the documents prepared by staff meet the requirements of the LGA 2002.

 

5.   Context/Background

The Crown’s Offer

5.1       In March 2017 the Government made an offer to assist with the reinstatement of the Cathedral.  This was rejected by the Church Property Trustees (the land and building owner);

5.2       On 4 July 2017 the Minister supporting Greater Christchurch Regeneration (Hon Nicky Wagner) again offered the Government’s support for reinstatement.  The proposal contained a revised Government offer, including a Council contribution and the confirmation of donor support from the Great Christchurch Buildings Trust;

5.3       The Council had earlier approved a grant of $10 million in principle, subject to public consultation and, depending on the outcome, providing for the grant in the Council’s 2018-28 Long Term Plan;

5.4       The Crown’s offer comprised:

5.4.1   a cash contribution from the Government of $10 million;

5.4.2   an interest free suspensory loan of $15 million from the Government;

5.4.3   a confirmed donor pledge of $13.7 million from the Great Christchurch Buildings Trust;

5.4.4   the establishment of an independent fundraising trust to lead the public fundraising for the balance of the funds required to meet the estimated $104 million cost of the reinstatement;

5.4.5   a contribution of $5 million to a maintenance and insurance fund to be established at the outset of the project.

The Council’s Contribution

5.5       The Council’s proposal is for it to make a grant of $10 million towards the reinstatement, spread over the period of the project.  Should the fundraising exceed the amount required for reinstatement of the Cathedral the Council contribution will be adjusted accordingly.

5.6       The ‘in principle’ decision was subject to the Anglican Synod deciding to reinstate the Cathedral and the Crown and other contributors confirming their financial commitments.  Both of these conditions have been met;

5.7       The decision also noted that the Council will consider as part of the 2018-28 Long Term Plan process whether the Council contributes operating funding to support the Cathedral’s role in attracting visitors to the city.

Funding Options

5.8       At the time, the Council received staff advice on the cost of borrowing the funds required to make the grant, if that was what the Council ultimately decided to do, and the effect this would have on the general rate.

5.9       Since then the option of a levy, or targeted rate, has been raised.  At this stage the draft Statement of Proposal does not refer to which option the Council proposes to use.

5.10    This will be discussed at the 10 October meeting.  The following information is provided to assist with that.

5.11    The Council’s Revenue and Financing Policy contains the mechanisms available to the Council for funding its activities.  Any decision about which mechanism to use is guided by considerations, also set out in the Policy.  These include the matters referred to in the following paragraphs.

5.12    The activity’s contribution to the achievement of the Council’s community outcomes.  The Stronger Communities outcome includes heritage and community participation.

5.13    Inter-generational equity, when the investment in capital projects provides benefits for many years.  This may be more appropriately funded through borrowing which is also paid over many years.

5.14    The potential for distinct funding sources.  It may improve the transparency and accountability of Council expenditure on any particular activity if the funding for it was sourced independently of other activities.  This may be the case where the cost is significant, or where it is considered desirable to demonstrate that funding is being spent on a specific project.

5.15    The possible benefits of this would have to be weighed against the cost of having to administer the separate funding stream.

5.16    There are two options available to the Council if it decided to make the grant:

Targeted Rate:

5.17    This is a way of providing funding for specific Council activities.  Targeted rates may be used if it is important to demonstrate that specific revenues are being applied to specific projects. Targeted rates may be calculated as either a fixed dollar value or a % of rateable value.  It is suggested that a fixed dollar amount would be charged for each separately used or inhabited part of a rating unit.

5.18    Assuming an amount of $10 million would be required over a period of four years, an annual targeted rate of approximately $18 (inclusive of GST) would be required from each of the Council’s rating units, raising $2.5 million each year.

General Rate – Borrowing:

5.19    Borrowing is undertaken to fund expenditure where the benefit is perceived to endure for multiple years. If the Council was to borrow over a period of four years, the annual rates requirement to service principal and interest repayments would build to $767,000 by year four.

5.20    This would equate to $5.50 (including GST) per year for each rating unit, declining gradually over the 30 year term of the loan to around $2.50.

Summary:

5.21    Based on the above figures, an annual targeted rate of $18 for four years would cost ratepayers $72.

5.22    The borrowing option would cost ratepayers $5.50 per annum, reducing to $2.50 over 30 years. Averaged out at $4 each year, this would mean a total of $120 paid by the time the loan is repaid, reflecting the additional time cost of money.

The Consultation Process

5.23    The Statement of Proposal will be publicly notified in The Press on Thursday 12 October and Saturday 14 October 2017 and in The Star on Thursday 12 October 2017.  Copies will be available in hard copy and electronically at Council Service Centres and Libraries.

5.24    The public will be invited to make submissions on the proposal from Thursday 12 October to 5.00pm on Monday 13 November 2017.

5.25    Submitters will have the option of completing an online or hard copy submission form.  Alternatively they may email or post their submissions to the Council.

5.26    The consultation will be promoted via Newsline and Council’s social media channels. We will also be notifying key stakeholders directly.

5.27    Submitters may present their views to the Council at a hearing to be held late November / early December, on a date yet to be decided. The Council may wish to appoint a Hearings Panel comprising the Mayor and Councillors to hear the submissions. 

5.28    The intention is that the Council will be able to deliberate and make a decision on the proposal before the end of the year.

 

 

Attachments

No.

Title

Page

a

Statement of Proposal for ChristChurch Cathedral Consultation

9

 

 

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

Ian  Thomson - Senior Legal Advisor, Governance

Katy McRae - Manager Engagement

Approved By

Richard Osborne - Head of Planning and Strategic Transport

Carol Bellette - General Manager Finance and Commercial (CFO)

  


Council

10 October 2017

 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator

 

 

  


Council

10 October 2017

 

 

20.  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:


Council

10 October 2017

 

 

 

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

27

Community Reslience Partnership Fund

s7(2)(b)(ii)

Prejudice Commercial Position

Council to decide the level of investment to be made in the partnerships with the groups involved.

Once the negotiations with the groups is completed