Finance and Performance Committee

Open Minutes

 

 

Date:                                     Wednesday 4 April 2018

Time:                                    9.34am

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

 

 

Present

Chairperson

Deputy Chairperson

Members

Councillor Raf Manji

Deputy Mayor Andrew Turner

Councillor Vicki Buck

Councillor Jimmy Chen

Mayor Lianne Dalziel

Councillor Mike Davidson

Councillor Jamie Gough

Councillor Yani Johanson

Councillor Deon Swiggs

Mr Mike Rondel (Non-Voting Member)

 

 

3 April 2018

 

 

 

Principal Advisor

Carol Bellette

General Manager Finance and Commercial

 

Aidan Kimberley

Committee and Hearings Advisor

941 6566

aidan.kimberley@ccc.govt.nz

www.ccc.govt.nz

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

 


Finance and Performance Committee

04 April 2018

 

Part A        Matters Requiring a Council Decision

Part B         Reports for Information

Part C         Decisions Under Delegation

 

 

 

The agenda was dealt with in the following order.

1.   Apologies

 

 

Committee Resolved FPCM/2018/00016

That the apology from Councillor Galloway be accepted.

Deputy Mayor/Councillor Davidson                                                                                                                    Carried

 

2.   Declarations of Interest

Part B

There were no declarations of interest recorded.

3.   Confirmation of Previous Minutes

Part C

Committee Resolved FPCM/2018/00017

Committee Decision

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

Councillor Gough/Councillor Davidson                                                                                                               Carried

 

4.   Public Forum

Part B

There were no public forum presentations.

5.   Deputations by Appointment

Part B

There were no deputations by appointment.

6.   Presentation of Petitions

Part B

There was no presentation of petitions.

 

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

 

Committee Resolved FPCM/2018/00018

Part C

That the Finance and Performance Committee:

1.         Receives the information in the report

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

Councillor Swiggs/Deputy Mayor                                                                                                                         Carried

 

 

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

 

Committee Decided FPCM/2018/00019

Part A

That the Finance and Performance Committee recommends that the Council:

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

Deputy Mayor/Councillor Chen                                                                                                                            Carried

 

9.   Performance Reporting for February 2018

 

Committee Comment

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

 

Committee Decided FPCM/2018/00020

Part A

That the Finance and Performance Committee recommends that the Council:

1.              Receives the information in the report.

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

Mayor/Deputy Mayor                                                                                                                                               Carried

 


 

10. Capital Endowment Fund - Process for Distribution of Funds

 

Committee Comment

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

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

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

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

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

 

 

Committee Decided FPCM/2018/00021

Part A

That the Finance and Performance Committee recommends that the Council:

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

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

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

4.         Requests annual and six monthly reports on the:

a.         current balance of available funding;

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

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

5.         Resolves that:

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

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

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

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

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

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

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

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

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

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

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

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

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

Councillor Gough/Councillor Davidson                                                                                                               Carried

 

11  Resolution to Exclude the Public

 

Committee Resolved FPCM/2018/00022

Part C

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

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

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

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

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

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

AND

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

Councillor Gough/Deputy Mayor                                                                                                                            Carried

 

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

   

Meeting concluded at 12:23pm.

 

CONFIRMED THIS 6TH DAY OF JUNE 2018.

 

Councillor Raf Manji

Chairperson