Finance and Performance Committee

Agenda

 

 

Notice of Meeting:

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

 

Date:                                     Wednesday 4 October 2017

Time:                                    9am

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

 

 

29 September 2017

 

 

 

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

04 October 2017

 

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 to be appointed by an Appointments Panel established 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. 

 

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

 


Finance and Performance Committee

04 October 2017

 

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.       Christchurch City Holdings Ltd - Appointment of Proxy for 2017 Annual General Meeting.......................................................................................................................... 11

C       8.       Regenerate Christchurch - August 2017 Status Report.............................................. 21

C       9.       Development Christchurch Ltd - Progress Update August/September 2017........... 27

C       10.     Resolution to Exclude the Public................................................................................. 32  

 

 


Finance and Performance Committee

04 October 2017

 

 

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 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, 6 September 2017 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.

It is intended that the public forum session will be held at <Approximate Time>

OR

There will be no public forum at this meeting

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

04 October 2017

 

 

 

Finance and Performance Committee

Open Minutes

 

 

Date:                                     Wednesday 6 September 2017

Time:                                    9am

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

 

 

Present

Chairperson

Members

Councillor Raf Manji

Councillor Vicki Buck

Councillor Jimmy Chen

Mayor Lianne Dalziel

Councillor Mike Davidson

Councillor Anne Galloway

Councillor Jamie Gough

Councillor Yani Johanson

Councillor Deon Swiggs

 

 

6 September 2017

 

 

 

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

Part C

 

 

Committee Resolved FPCM/2017/00023

That the apology from Deputy Mayor Turner, apology for lateness from Councillor Swiggs and apology for early departure from Councillor Chen be accepted.

Councillor Gough/Councillor Galloway                                                                                                               Carried

 

2.   Declarations of Interest

Part B

There were no declarations of interest recorded.

 

3.   Confirmation of Previous Minutes

Part C

Committee Resolved FPCM/2017/00024

Committee Decision

That the minutes of the Finance and Performance Committee meeting held on Wednesday, 2 August 2017 be confirmed.

Councillor Davidson/Councillor Gough                                                                                                               Carried

 

4.   Deputations by Appointment

Part B

 

5.   Presentation of Petitions

Part B

There was no presentation of petitions.


Mayor Dalziel joined the meeting at 09:04 am.

Councillor Swiggs joined the meeting at 09:12 am.

6.   Performance report for the year ended 30 June 2017

 

Committee Decided FPCM/2017/00025

Part A

That the Finance and Performance Committee recommends that the Council:

1.         Receives the information in the report.

2.         Approves net operational carry forward requests from 2016/17 of $30.2 million (as detailed in Attachment C), to enable completion of projects in 2017/18 and beyond.

3.         Approves (as detailed in Attachment E) capital carry forward and bring back requests to/from 2016/17 of $49 million to enable completion of capital projects in 2017/18 or later as indicated, noting $52.9 million moves to 2017/18 and replaces an unspecified $57.4 million already included in the 2018 Annual Plan.

4.         Approves capital revenue and funding net carry forwards to/from 2016/17 of $27.9 million to align with the capital programme, noting this includes $11 million of development contribution rebates.

Councillor Swiggs/Councillor Davidson                                                                                                               Carried

The meeting adjourned at 9:47am and resumed at 10:50am

Councillors Swiggs and Chen left the meeting during the adjournment.

Councillor Johanson left the meeting during the adjournment and returned at 10:57am.

Councillor Buck left the meeting during the adjournment and returned during the Public Excluded session.

7.   Asset Management Quarterly Report - Transport

 

Committee Resolved FPCM/2017/00026

Part C

That the Finance and Performance Committee:

1.         Receive this report

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

3.         Note that feedback is sought regarding potential other transport data to be collected.

Mayor/Councillor Davidson                                                                                                                                    Carried

 

 


 

8     Resolution to Exclude the Public

 

Committee Resolved FPCM/2017/00027

Part C

That at 11:12am the resolution to exclude the public set out on pages 75 to 76 of the agenda be adopted.

Mayor/Councillor Gough                                                                                                                                            Carried

 

The public were re-admitted to the meeting at 11:26am.

 

   

Meeting concluded at 11:26am.

 

CONFIRMED THIS 4TH DAY OF OCTOBER 2017

 

Councillor Raf Manji

Chairperson

 


Finance and Performance Committee

04 October 2017

 

 

7.        Christchurch City Holdings Ltd - Appointment of Proxy for 2017 Annual General Meeting

Reference:

17/1031537

Contact:

Linda Gibb

Linda.gibb@ccc.govt.nz

941 6762

 

 

1.   Purpose and Origin of Report

Purpose of Report

1.1       The purpose of this report is for the Finance and Performance Committee to appoint a proxy and an alternate to exercise the Council’s voting rights at the upcoming Christchurch City Holdings Ltd (CCHL) annual general meeting (AGM).

Origin of Report

1.2       This report is staff generated in response to receiving notice from CCHL of its AGM.

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 decision on the community.

 

3.   Staff Recommendations

That the Finance and Performance Committee recommends that Council:

1.         Notes Christchurch City Holdings Ltd’s annual general meeting will be held on Wednesday 15 November 2017 in the Function Room, Level 1, Civic Offices;

2.         Appoints a proxy [insert Councillor name] and an alternate [insert name] to exercise the Council’s voting rights at the AGM by executing the Instrument to Appoint a Proxy as set out in Attachment A of this report by Friday, 10 November to ensure it reaches Christchurch City Holdings Ltd no later than 48 hours before the meeting;

3.         Notes the agenda for Christchurch City Holdings Ltd’s 2017 annual general meeting (Attachment B) and minutes of its 2016 meeting (Attachment C);

4.         Agrees to direct the proxy and alternate to vote in favour of the matters to be put to Christchurch City Holdings Ltd’s shareholders for approval.

 

4.   Key Points

4.1       The Council has received notice that CCHL’s annual general meeting will be held at 4.30pm on Wednesday 15 November 2017, in the Function Room, Level 1, Civic Offices.

4.2       The following documents pertaining to the AGM are attached:

·    Attachment A - Instrument to Appoint a Proxy (and alternate) for execution by the Council as shareholder; and

·    Attachment B - Agenda setting out the order of business and the matters that shareholders are required to vote on;

·    Attachment C - Minutes of CCHL’s 2016 AGM, which will be voted on by shareholders at the 2017 AGM.

4.3       The AGM requires a quorum of shareholders to be present if votes are required to be exercised on the majority of the shares.  If a quorum is not present within 30 minutes after the time appointed for the meeting, it may be dissolved and/or adjourned to a later date.

4.4       In order to meet the requirement for a quorum of shareholders, the Council needs to appoint a proxy to vote on the business of the meeting.  An alternate should also be appointed to act should the proxy become unavailable to attend the meeting.  The voting rights for a particular share can be exercised by either the proxy or the alternate, not both. 

4.5       The proxy and alternate can be a Councillor, a Council staff member or any other person that is not a director of CCHL.  In 2016, the proxy was Councillor Manji and the alternate was Councillor East.

4.6       To enable the proxy to be validated, the document must be received by CCHL 48 hours before the meeting is scheduled to be held (before 4.30pm on Monday 13 November).

4.7       The matters that are subject to shareholder voting are recorded on the AGM agenda at Attachment B.  Council staff consider the matters to be voted on are not contentious, and therefore the proxy or alternate should vote in favour of the proposed resolutions on behalf of the Council.

 

 

Attachments

No.

Title

Page

a

Christchurch City Holdings Ltd - Instrument to Appoint a Proxy to vote at the 2017 annual general meeting

13

b

Christchurch City Holdings Ltd - agenda for 2017 annual general meeting

15

c

Christchurch City Holdings Ltd - Minutes of annual general meeting, 2016

17

 

 

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

Diane Brandish - Head of Financial Management

Carol Bellette - General Manager Finance and Commercial (CFO)

  


Finance and Performance Committee

04 October 2017

 

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04 October 2017

 

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04 October 2017

 

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Finance and Performance Committee

04 October 2017

 

 

8.        Regenerate Christchurch - August 2017 Status Report

Reference:

17/1024418

Contact:

Linda Gibb

Linda.gibb@ccc.govt.nz

941 6762

 

 

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 Regenerate Christchurch’s progress and performance for July and August 2017.

Origin of Report

1.2       This report is staff generated as a result of the August 2017 Status Report submitted to joint Council-Crown shareholders by Regenerate Christchurch.

2.   Significance

2.1       The decision(s) 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 applying the Council’s Significance and Engagement Policy, taking into consideration the possible costs/risks to Council, ratepayers and the wider community of carrying out the decision.

 

3.   Staff Recommendations

That the Finance and Performance Committee recommends that Council:

1.         Notes Regenerate Christchurch’s August 2017 Status Report set out in Attachment A;

2.         Notes the following issues that Councillors may wish to raise with Regenerate Christchurch:

(i)            Ōtākaro Avon River Corridor regeneration area – whether and when Regenerate Christchurch will brief shareholders on the feedback received on the shortlist of options and supporting cost and technical studies, and what the next steps for Regenerate Christchurch are for progressing this project; 

(ii)          Cathedral Square and surrounds – what is the general indication of feedback received on the draft Concept, and what are the next steps for Regenerate Christchurch to progress this project following its development of a draft Strategy; and

3.         Notes that Regenerate Christchurch will be making a presentation to Councillors in November 2017 on the evaluation and progress of regeneration of the Central City.

 

4.   Key Points

4.1       From 1 July 2017, Regenerate Christchurch will report its progress and performance against its work programme each month to shareholders.  Every second month, Council staff will provide a report, and any advice to the Finance and Performance Committee for its review. 

4.2       Regenerate Christchurch representatives will attend the Committee meeting to address issues and questions raised by Councillors.  In attendance at this meeting will be the board’s Chair, André Lovatt, Director Humphry Rolleston, Chief Executive Ivan Iafeta and General Manager Corporate Services, Jason Rivett.

4.3       Regenerate Christchurch’s August 2017 Status Report is at Attachment A.  Councillors may wish to raise the following matters with Regenerate Christchurch staff:

Ōtākaro Avon River Corridor Regeneration Area – the report notes that a shortlist of options and supporting cost and technical studies will be published for feedback between 11 September and 10 October.  There is no indication within the report of when feedback will be received.

Cathedral Square and Surrounds – the report notes that following Regenerate Christchurch’s analysis of feedback on the draft Concept, a draft Strategy will be developed.  The report does not indicate the nature of the feedback.

4.4       The financial information provided in the status report is for the month of July only (due to timing difficulties with Committee agenda deadlines and board meetings).  The notable issues are that:

·   Revenue is ahead of budget by $4 million which is the Council’s annual payment that was made at the end of July, but which was expected by Regenerate Christchurch at the beginning of August; and 

·   Total operating expenses are $279,000 (30%) under budget, mostly relating to staff salaries and consulting expenditure.  Regenerate Christchurch’s work programme anticipates the 2017/18 year as having its highest expenditure and output across its five year work programme.  It is very important that momentum is maintained to achieve the ambitious delivery targets.

·   Regenerate Christchurch has advised that total spend on consultants is at a level consistent with June and July 2017, however the budget for this financial year has been increased to reflect the increased delivery of the work programme and therefore an additional spend on external consultants.  With changing timelines for some projects, some consultant expenditure is being pushed out and therefore this is a timing difference rather than a permanent difference.

Staff Comment

4.5       We expect there to be some refinements made to the content of the status reports as time progresses.  At this early stage, we would like to see more discussion about material variances in expenditure, and identification of next steps following conclusion of current project milestones. 

4.6       By the time this report is considered by the Finance and Performance Committee, Regenerate Christchurch may be able to informally discuss its September activities. 

Central City Progress Report

4.7       At its meeting on 25 May, the Council passed a resolution (refer CNCL/2017/00158) as follows:

Request a written report, as soon as practicable, to the Finance and Performance Committee from Regenerate Christchurch on the evaluation and progress of regeneration of the Central City, particularly the private sector response to the investment of public funds and the Christchurch Central Recovery Plan (and associated measures), as referenced in the 14 April 2016 Letter of Expectations for Regenerate Christchurch.

4.8       We understand that Regenerate Christchurch is intending to give a presentation to Councillors on the outcome of its work in the central city in November.  The report from this briefing could then be referred to the Finance and Performance Committee, if required.

 

Attachments

No.

Title

Page

a

Regenerate Christchurch - August 2017 Status Report

24

 

 

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

Linda Gibb - Performance Monitoring Advisor

Patricia Christie - Manager External Reporting and Governance

Approved By

Diane Brandish - Head of Financial Management

Carol Bellette - General Manager Finance and Commercial (CFO)

  


Finance and Performance Committee

04 October 2017

 

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Finance and Performance Committee

04 October 2017

 

 

9.        Development Christchurch Ltd - Progress Update August/September 2017

Reference:

17/1038247

Contact:

Linda Gibb

Linda.gibb@ccc.govt.nz

941 6762

 

 

1.   Purpose and Origin of Report

Purpose of Report

1.1       The purpose of this report is to note Development Christchurch Ltd’s (DCL) progress report for August and September 2017.

1.2       The information in this report is an update on the activities and projects which DCL is currently undertaking.  Reporting of DCL’s performance against its Statement of Intent targets is provided quarterly, alongside that of other council-controlled organisations.

Origin of Report

1.3       The report was prepared and submitted by the Chief Executive of DCL. 

2.   Significance

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

 

3.   Staff Recommendations

That the Finance and Performance Committee recommends that the Council:

1.         Notes Development Christchurch Limited’s progress report for August and September 2017.

 

4.   Key Points

4.1       DCL’s progress report for August and September 2017 is at Attachment A.

 

 

 

Attachments

No.

Title

Page

a

Development Christchurch Ltd - August/September 2017 Progress Report

29

 

 

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

Linda Gibb - Performance Monitoring Advisor

Patricia Christie - Manager External Reporting and Governance

Approved By

Diane Brandish - Head of Financial Management

Carol Bellette - General Manager Finance and Commercial (CFO)

  


Finance and Performance Committee

04 October 2017

 

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Finance and Performance Committee

04 October 2017

 

 

10.  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

04 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

11

Public Excluded Finance and Performance Committee Minutes - 6 September 2017

 

 

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

 

12

Development Christchurch Ltd - Progress Report for August/September 2017

s7(2)(b)(ii)

Prejudice Commercial Position

To allow DCL to protect its commercial position in negotiations for contracts on particular projects.

After resolutions are made, with redactions as necessary

13

Christchurch City Holdings Ltd - Draft Letter of Expectations 2018/19

s7(2)(h)

Commercial Activities

As the draft is provided for comment it is appropriate that these comments can be made on a confidential basis.

When the Statement of Intent, 2018/19 is accepted and published

14

Capital Programme Watchlist and Major Cycleways Reports

s7(2)(b)(ii)

Prejudice Commercial Position

The report contains confidential and sensitive financial information pertinent to capital project delivery

Per Project upon completion

15

2017 Annual Report

s7(2)(b)(ii)

Prejudice Commercial Position

To allow the Committee to consider the issues contained in the Annual Report prior to it being passed to Council for adoption

Following approval by ARMC that it recommend that the Annual Report be adopted by Council