Finance and Performance Committee of the Whole

Agenda

 

 

Notice of Meeting:

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

 

Date:                                    Thursday 7 March 2019

Time:                                   9.30am

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

 

 

Membership

Chairperson

Deputy Chairperson

Members

Councillor Raf Manji

Deputy Mayor Andrew Turner

Mayor Lianne Dalziel

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 Tim Scandrett

Councillor Deon Swiggs

Councillor Sara Templeton

 

 

1 March 2019

 

 

 

Principal Advisor

Carol Bellette

General Manager Finance

 

Samantha Kelly

Committee and Hearings Advisor

941 6227

samantha.kelly@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 of the Whole

07 March 2019

 

 

Finance and Performance Committee of the whole - Terms of Reference

 

Chair

Councillor Manji

Deputy Chair

Deputy Major Turner

Membership

The Mayor and all Councillors

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

 

Area of focus

The focus of the Finance and Performance Committee is the financial and non-financial performance of the Council, including the delivery of the Council’s Capital Programme, CCHL and its subsidiaries, and any other Council Controlled Organisations.

 

In making recommendations or exercising its delegations, the Committee must manage the matters referred to in section 101 of the Local Government Act 2002 which includes that the Council must manage its revenues, expenses, assets, liabilities, investments, and general financial dealings prudently and in a manner that promotes the current and future interests of the community.

 

The Finance and Performance Committee considers and, if the matter is not within the Committee’s delegated authority, reports to Council on matters relating to:

·           The delivery of the Council’s Capital Programme

·           The Council’s operational and capital expenditure, including any material discrepancies from planned expenditure

·           Leading and overseeing the Council’s strategic relationship with the Crown, including specific strategic projects of shared interest and interface with the Crown, including the Cost Share Agreement and matters under the Greater Christchurch Regeneration Act 2016

·           The financial and non-financial performance of the Council and Council Controlled Organisations, and governance decisions related to Council Controlled Organisations

·           The Council’s financial and funding policies under section 102 of the Local Government Act 2002

·           Debt write-offs and status of Council debtors

·           Acquisition or disposal of property where required for the delivery of the Capital Programme

·           Council insurance policies and related matters and litigation

·           The development of the Annual Report for consideration by Council

·           Advising and supporting the Mayor to lead the development of the Long Term Plan and Annual Plan, including setting the overall parameters, strategic direction and priorities, and the development of a consultation document.

·           Reviewing the delivery of services under s17A

·           Submissions to external bodies relating to the area of focus of the Finance and Performance Committee

 

 

 

Delegations

 

The Council delegates to the Finance and Performance Committee authority to:

·           Monitor the delivery of the Council’s Capital Programme, including inquiring into any material discrepancies from planned expenditure

·           Monitor the financial and non-financial performance of the Council and Council Controlled Organisations, including carrying out all of the Council’s obligations under sections 65 to 72 of the Local Government Act 2002

·           Exercise the Council’s powers directly as the shareholder, or through CCHL, or in respect of an entity (within the meaning of section 6(1) of the Local Government Act 2002) in relation to –

-          (without limitation) the modification of constitutions and/or trust deeds, and other governance arrangements, granting shareholder approval of major transactions, appointing directors or trustees, and approving policies related to Council Controlled Organisations

-          in relation to the approval of Statements of Intent and their modification (if any)

·           Purchase or dispose of property where required for the delivery of the Capital Programme, in accordance with the Council’s Long Term Plan, and where those acquisitions or disposals have not been delegated to another decision-making body of the Council or staff.

·           Adopt funding and financial policies other than those that must be adopted as part of the Council’s Long-Term or Annual Plans

·           As may be necessary from time to time, approve amendments to the Capital Programme outside the Long Term Plan or Annual Plan processes

·           Approve preferred suppliers for capital projects where the value of the contract exceeds $15 Million

·           Approve preferred suppliers and contracts from both capital and operational budgets relating to the Council’s Information Technology systems where the value of the contract exceeds $15 Million of capital expenditure or $10 Million of operational expenditure.

·           Amend levels of service targets, unless the decision is precluded under section 97 of the Local Government Act 2002

·           Approve debt write-offs where those debt write-offs are not delegated to staff

·           Insurance matters, including considering legal advice from the Council’s legal and other advisers, approving further actions relating to the issues, and authorising the taking of formal actions.

·           Authorise submissions to external bodies relating to the area of focus of the Finance and Performance Committee

 

The Committee delegates to the following subcommittees or working groups the responsibility to consider and report back to the Committee:

·           Insurance Subcommittee

 

 


Finance and Performance Committee of the Whole

07 March 2019

 

Part A           Matters Requiring a Council Decision

Part B           Reports for Information

Part C           Decisions Under Delegation

 

 

TABLE OF CONTENTS

 

C          1.        Apologies................................................................................................. 7

B         2.        Declarations of Interest.............................................................................. 7

C          3.        Confirmation of Previous Minutes................................................................. 7

B         4.        Public Forum............................................................................................ 7

B         5.        Deputations by Appointment....................................................................... 7

B         6.        Presentation of Petitions............................................................................ 7

CHAIR INTRODUCTION

Staff Reports

CURRENT PERFORMANCE

B         7.        Capital Programme Performance Report..................................................... 21

B         8.        Performance Exceptions Reporting for January 2019..................................... 35

CAPITAL PROGRAMME: MAJOR PROJECTS

B         9.        Community Facilities Earthquake Rebuild Programme Bi-Monthly Update February 2019....................................................................................................... 55

b         10.      Christchurch Town Hall Project Monthly Update........................................... 87

CLOSE OUT REPORTS

B         11.      New Brighton Pier Project Closeout Summary.............................................. 91

COUNCIL CONTROLLED ORGANISATIONS/COUNCIL CONTROLLED TRADING ORGANISATIONS

B         12.      Regenerate Christchurch Ltd - Half year performance report for period 1 July - 31 December 2018....................................................................................... 103

b         13.      Christchurch City Holdings Ltd - Interim Report 2019.................................... 111

B         14.      Council-controlled organisations - Half year reports for the period 1 July - 31 December 2018....................................................................................... 153

C          15.      Resolution to Exclude the Public.............................................................. 269  

 

 


Finance and Performance Committee of the Whole

07 March 2019

 

 

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 of the Whole meeting held on Thursday, 7 February 2019  be confirmed (refer page 8).

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 9.30am.

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 of the Whole

07 March 2019

 

 

 

Finance and Performance Committee of the Whole

Open Minutes

 

 

Date:                                     Thursday 7 February 2019

Time:                                    9.33am

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

 

 

Present

Chairperson

Deputy Chairperson

Members

Councillor Raf Manji

Deputy Mayor Andrew Turner

Mayor Lianne Dalziel

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 Tim Scandrett

Councillor Deon Swiggs

Councillor Sara Templeton

 

 

7 February 2019

 

 

 

Principal Advisor

Carol Bellette

General Manager Finance

 

Samantha Kelly

Committee and Hearings Advisor

941 6227

samantha.kelly@ccc.govt.nz

www.ccc.govt.nz

To view copies of Agendas and Minutes, visit:
www.ccc.govt.nz/the-council/meetings-agendas-and-minutes/

 


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 FPCO/2019/00001

That the apology from Councillor Scandrett for early departure be accepted.

Councillor Gough/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 FPCO/2019/00002

That the minutes of the Finance and Performance Committee meeting held on Wednesday, 5 December 2018 be confirmed.

Councillor Manji/Councillor Davidson                                                                                                                 Carried

 

4.   Public Forum

Part B

There were no public forum presentations.

 

 

6.   Presentation of Petitions

Part B

There was no presentation of petitions.

 

Chairperson Introduction

Councillor Manji provided an introduction to the first Finance and Performance Committee of the Whole meeting.

 

5.   Deputations by Appointment

Part B

5.1       David Lynch - Momentus Public Relations Ltd

David Lynch presented to the Committee regarding Item 16 – Central City Activation, Events and      Attractions Package.

 

 

8.   Christchurch Town Hall Project Monthly Update

 

Committee Resolved FPCO/2019/00003

Part B

That the Finance and Performance Committee of the Whole:

1.         Receives the report.

Councillor Templeton/Councillor Cotter                                                                                                            Carried

 

 

9.   Capital Delivery Major Facilities Elected Member Update

 

Committee Comment

1.         The Committee resolved to receive the report. 

2.         The Committee also requested for the original approved project budgets and delivery timeframes be included in future Capital Delivery Major Facilities Update reports, including explanatory notes, if the project budget or timeframes have changed.

 

Committee Resolved FPCO/2019/00004

Part C

That the Finance and Performance Committee of the Whole:

1.         Receive the information in the attached Capital Delivery Major Facilities Project Updates report.

2.         Note the additional reporting requirements requested by the Committee.

Councillor Templeton/Mayor                                                                                                                                 Carried

 

 

 


 

Councillor Livingstone left the meeting at 10.30am and returned at 10.33am during consideration of item 10.

 

10. Capital Programme Performance Report

 

Staff Recommendations

That the Finance and Performance Committee of the Whole:

1.         Receive the information in the Capital Programme Performance report.

2.         Request further information on specific projects or portfolios.

 

 

Committee Resolved FPCO/2019/00005

Part C

That the Finance and Performance Committee of the Whole:

1.         Receive the information in the Capital Programme Performance report.

Councillor Clearwater/Councillor Davidson                                                                                                      Carried

 

 

Councillor Buck left the meeting at 11.24am during consideration of item 11.

 

11. Financial Performance report for the six months to 31 December 2018

 

Committee Resolved FPCO/2019/00006

Part B

That the Finance and Performance Committee of the Whole:

1.         Receives the information in the report.

Councillor Davidson/Councillor Chen                                                                                                                  Carried

 

 

The meeting adjourned at 11.27am and reconvened at 11.45am. Councillors Davidson was not present at this time.

Councillor Scandrett left the meeting at 11.27am and did not return to the meeting.

 

 


 

Councillors Gough and Livingstone left the meeting at 12.08pm during consideration of item 12.

 

Councillor Davidson returned to the meeting at 12.11pm during consideration of item 12.

 

Councillor Gough returned to the meeting at 12.15pm during consideration of item 12.

 

Councillor Davidson left the meeting at 12.17pm and returned at 12.17pm during consideration of item 12.

 

 

12. Performance Reporting for December 2018

 

Committee Resolved FPCO/2019/00007

Part B

That the Finance and Performance Committee of the Whole:

1.         Receive the information in the monthly Level of Service Exceptions report for December 2018.

Councillor Swiggs/Councillor Templeton                                                                                                           Carried

 

 

13. Corporate Finance Report for the period ending 31 December 2018

 

Committee Resolved FPCO/2019/00008

Part B

That the Finance and Performance Committee of the Whole:

1.         Receives the information in the report;

2.         Notes the status of the Treasury Policy Compliance; and

3.         Notes the status of the Rates and Non-Rates Debtor balances.

Councillor Templeton/Councillor Swiggs                                                                                                           Carried

 

 


 

Councillor Buck left the meeting at 12.48pm and returned at 12.56pm during consideration of item 14.

 

Report from Banks Peninsula Community Board - 17 December 2018

14. Akaroa Community Health Centre Funding Request

 

Committee Comment

1.         At its meeting on 24 January 2019 the Council resolved that the report on the Akaroa Community Heath Centre Funding Request and the Banks Peninsula Community Board recommendations be referred to the 7 February 2019 Finance and Performance Committee of the Whole. The Council also delegated to the Committee decision-making authority in respect of the report.

 

Staff Recommendations

 

That Te Pātaka o Rākaihautū/Banks Peninsula Community Board recommends to Council that it either:

1.         Agrees in principle to the request from the Akaroa Community Health Trust to provide it with One-off Council Grant funding up to a maximum of $1,300,000. The Grant to be used to fund the Trust’s outstanding funding commitment to the Canterbury District Health Board for the Akaroa Community Health Centre.

Or:

Declines the Akaroa Community Health Trust request for One-off Council Grant funding up to a maximum of $1,300,000.

Or:

Defers consideration of the request for funding until the end of 2019 to enable the Akaroa Community Health Trust to have a clearer view of its eventual funding requirements. 

That Te Pātaka o Rākaihautū/Banks Peninsula Community Board recommends to Council that if it agrees in principle to provide the Akaroa Community Health Trust with One-off Council Grant funding (Option 1 above), that:

2.         The Council proposes that the Grant be paid for from a Grants Targeted Rate on properties in the Akaroa and Bays area, on the basis that the Rate is:

a.         Applied to all rateable units in the Akaroa subdivision of the Banks Peninsula ward;

b.         Calculated on a proportional basis according to the capital value of each Rating Unit;

c.         Applied for a maximum of ten years from 1 July 2019  – 30 June 2028/29;

d.         Limited in total revenue raised to a maximum of $1,300,000 adjusted for interest revenue and interest costs arising from the difference in timing between when the Targeted Rate revenue is received and when the One-off Council Grant is paid;

e.         Calculated based on the interest rate earned by ratepayers on Targeted Rate amounts paid to Council before the Grant is paid in 2022/23 being 3.0 per cent (being an estimate of what the Council would earn by investing those funds on term deposit);

f.          Calculated based on the interest rate paid by ratepayers on Targeted Rate revenue received after the Grant is paid in 2022/23 to be 4.5 per cent (being an estimate of what the Council would pay on borrowing over this period);

g.         Reduced if the Trust receives further funding from other sources – the Grants Targeted Rate will be the funder of last resort.

3.         The Council uses a decision making process that includes appropriate community consultation that:

a.         proposes the Council’s preferred option as well as any other options the Council considers practicable; 

b.         meets the requirements of section 82 of the Local Government Act 2002;

c.         is focused on the communities directly affected by the proposal but be open to all Christchurch residents;

4.         The Council agrees that a Hearings Panel be convened at the completion of the consultation period to receive and hear submissions on the proposal, deliberate on those submissions, and to report back recommendations to the Council.

 

 

Banks Peninsula Community Board Recommendations to the Finance and Performance Committee of the Whole

That the Finance and Performance Committee of the Whole:

 

1.        Agrees in principle, subject to community consultation, to the request from the Akaroa Community Health Trust to provide it with One-off Council Grant funding up to a maximum of $1,300,000.  The Grant to be used to fund the Trust’s outstanding funding commitment to the Canterbury District Health Board for the Akaroa Community Health Centre, subject to the Council using a decision making process that includes appropriate community consultation as follows:

a.      proposes the Council’s preferred option as well as any other options the Council considers practicable, including:

         i. the community is asked if they support a targeted rate;

         ii. options of a four year and ten year rating period;

   iii. the community is asked what level of support should be required for the        targeted rate to be implemented;         

b.      the Community Board formally approves the Consultation Document;

c.      meets the requirements of section 82 of the Local Government Act 2002;

d.     is focused on the communities directly affected by the proposal but be open to all Christchurch residents;

2.         Agrees that a Hearings Panel be convened and hearings held, including in Akaroa, at the completion of the consultation period to receive and hear submissions on the proposal, deliberate on those submissions, and to report back recommendations to the Council.

3.         The grant be reduced if the Trust receives further funding from other sources – the Grants Targeted Rate will be the funder of last resort.

 

 

 

 

Committee Resolved FPCO/2019/00009

Part C

The Finance and Performance Committee of the Whole noted the Banks Peninsula Community Board’s recommendations and resolved as follows:

That the Finance and Performance Committee of the Whole:

1.         Agrees in principle to the request from the Akaroa Community Health Trust for a one-off Council grant of up to $1.3 million to assist the Trust meet a funding commitment to the Canterbury District Health Board for the new Akaroa Community Health Centre;

2.         Agrees the amount of the grant, if made, will be recovered through a fixed charge targeted rate paid by rate payers in the Akaroa subdivision of the Banks Peninsula ward;

3.         Expects the Trust to continue using its best endeavours to raise the funds it requires from other sources, so that the grant/targeted rate mechanism is used as a last resort only;

4.         Requests that before the Council makes a final decision on the matter, staff undertake a consultation process that:

a.         ascertains the level of support of community support for the grant being made and recovered through a fixed charge targeted rate;

b.         ascertains the level of support from ratepayers in the Akaroa subdivision of the Banks Peninsula Ward for paying a fixed charge targeted rate over a 4 year, 10 year, or other rating period;

c.         includes the appointment of a Hearings Panel to hear oral submissions, sitting in Akaroa as well as any other place determined by the Panel;

d.         will ensure the Panel's recommendations are received and considered by the Council before the meeting at which the Council adopts its 2019/20 Annual Plan and sets rates for the 2019/20 year;

5.         Requests the Hearings Panel, in its deliberations, to be satisfied the level of response to the consultation and support for the grant/targeted rate from the wider community and the affected ratepayers is substantial and convincing before the Panel makes a decision on its recommendations to the Council.

Councillor Manji/Councillor Templeton                                                                                                             Carried

 

 

 

The meeting adjourned at 12.56pm and reconvened at 2.03pm. The Mayor, Councillor Buck and Councillor Clearwater were not present at this time.

 

The Mayor returned to the meeting at 2.04pm during consideration of item 15.

 

Councillors Buck and Clearwater returned to the meeting at 2.06pm during consideration of item 15.


 

 

15. Wastewater Heat Recovery Linwood Pool

 

Committee Comment

1.         The Committee resolved the staff recommendations without change.

 

Committee Resolved FPCO/2019/00010

Part C

That the Finance and Performance Committee of the Whole:

1.         Approve the increase of the Linwood Pool budget from $21,641,750 to $22,719,750 (an increase of $1,078,000) to enable the integration of a wastewater heat recovery system within the Linwood Pool facility.

2.         Approve the funding of the waste water heat recovery system for the Linwood Pool up to $1,078,000 through reprioritisation of ‘Recreation and Sport Buildings & Plant R&R Programme’ FY21.

3.         Request that staff also seek third party funding for the wastewater heat recovery system for the Linwood pool.

4.         Note that this initiative directly aligns with Council’s Strategic Priority of Climate Change Leadership.

The division was declared carried by 9 votes to 6 votes the voting being as follows:

For:                           Deputy Mayor Turner, Mayor Dalziel, Councillor Buck, Councillor Chen, Councillor Clearwater, Councillor East, Councillor Galloway, Councillor Johanson and Councillor Templeton

Against:                 Councillor Manji, Councillor Davidson, Councillor Gough, Councillor Keown, Councillor Livingstone and Councillor Swiggs

Abstained:            Councillor Cotter

Councillor Templeton/Councillor Johanson                                                                                                      Carried

 

 


 

16. Central City activation, events and attraction package

 

Staff Recommendations

That the Committee of the Whole:

1.         Agree in principle to the establishment of a winter package to support the Central City.

2.         Recommend to the Council that $280,000 funding to support the proposed winter package is added to the 2019/2020 draft Annual Plan, noting that the final decision to include funding will be considered before adoption of the draft and final 2019/2020 Annual Plan.

3.         Recommend that the Council delegates to the Head of Urban Design, Regeneration and Heritage and the Head of Recreation, Sports and Events – in conjunction with ChristchruchNZ - the decision to jointly approve the details of the winter package, noting that this will contain elements of:

a.         Extending the existing events programme and establishing an activation programme;

b.         Delivering a strategic marketing campaign, complemented by a local campaign; and

c.         Coordinating with retailers and hospitality to leverage visitation.

4.         Recommend that the Council note that the reporting and monitoring of the winter package will occur via reporting on the Central City Action Plan.

 

 

Committee Resolved FPCO/2019/00011

Part C

That the Finance and Performance Committee of the Whole:

1.         Decline the establishment of a Central City Winter Package, and notes that the Central City Development Forum continues to monitor progress in the central city to provide advice and ideas on central city activation as they arise.

The division was declared carried by 10 votes to 6 votes the voting being as follows:

For:                           Councillor Manji, Deputy Mayor Turner, Mayor Dalziel, Councillor Buck, Councillor Chen, Councillor Clearwater, Councillor Cotter, Councillor Johanson, Councillor Livingstone and Councillor Templeton

Against:                 Councillor Davidson, Councillor East, Councillor Galloway, Councillor Gough, Councillor Keown and Councillor Swiggs

Councillor Manji/Councillor Livingstone                                                                                                             Carried

 

 


 

17. Establishment of an Insurance Subcommittee

 

Committee Resolved FPCO/2019/00013

Part C

That the Finance and Performance Committee of the Whole:

1.         Establish an Insurance Subcommittee.

2.         Adopts the Terms of Reference for the Insurance Subcommittee (Attachment A of this report).

Councillor Cotter/Councillor Keown                                                                                                                    Carried

 

 

18. Insurance Summary

 

Committee Resolved FPCO/2019/00014

Part C

That the Finance and Performance Committee of the Whole:

1.         Receive the information in this report.

2.         Request further work to be done on Resilience and Risk Finance and for staff to report back through the Insurance Subcommittee.

Councillor Manji/Mayor                                                                                                                                           Carried

 

 

 

19  Resolution to Exclude the Public

 

Committee Resolved FPCO/2019/00015

Part C

That at 3.32pm the resolution to exclude the public set out on pages 172 to 173 of the agenda be adopted.

Councillor Manji/Deputy Mayor                                                                                                                            Carried

 

The public were re-admitted to the meeting at 4.33pm.

Meeting concluded at 4.33pm.

 

 

CONFIRMED THIS 7TH DAY OF MARCH 2019.

 

Councillor Raf Manji

Chairperson

 


Finance and Performance Committee of the Whole

07 March 2019

 

 

7.        Capital Programme Performance Report

Reference:

19/191867

Presenter(s):

Ged Clink – Head of Programme Management Office
David Adamson – General Manager City Services
and Heads of Delivery

 

 

1.   Purpose of Report

1.1       The purpose of this report is for the Finance and Performance Committee of the Whole to be informed of Capital Programme Delivery Performance.

2.   Staff Recommendations

That the Finance and Performance Committee of the Whole:

1.         Receive the information in the Capital Programme Performance report.

 

 

 

 

Attachments

No.

Title

Page

a

Capital Performance Summary

22

 

 

Signatories

Author

Ged Clink - Head of Programme Management Office

Approved By

Carolyn Gallagher - Programme Director – Strategic Support

Carol Bellette - General Manager Finance and Commercial (CFO)

  


Finance and Performance Committee of the Whole

07 March 2019

 

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Finance and Performance Committee of the Whole

07 March 2019

 

 

8.        Performance Exceptions Reporting for January 2019

Reference:

19/151462

Presenter(s):

Peter Ryan - Head of Performance Management

 

 

Purpose of Report

1.1       The purpose of this report is for the Finance and Performance Committee of the Whole to note an update on Long Term Plan (LTP) level of service performance for January 2019.

1.1.1   Corporate Performance Exceptions Report January 2019.

1.1.2   LTP Level of Service delivery performance graph, exceptions and commentary January 2019.

1.1.3   Performance by Activity Jan 2019 – Levels of service by activity graph, comparison of forecast Levels of Service (LOS) delivery and forecast activity financials graph, and financial table.

1.2       Note the schedule of upcoming major contracts that may trigger service delivery reviews (S17A), the effect of this on the scheduling of Service Delivery Reviews and “deep dives”, and note that the proposed S17A review schedule will be available for the next meeting in April.

2.   Background Information

2.1       The new Finance & Performance Committee of the Whole has an updated agenda of standing items. It was designed by Cr Manji (Chair) and Cr Turner (Deputy Mayor.) This report covers the agenda items they have asked for:

                                  

2(a) Current Performance

•    exceptions to capital projects (Watchlist projects)

•    exceptions to Levels of Service

•    exceptions to opex/performance by activity  

 

2.2       Note that on the direction of the Chair the exception report for capital projects (Watchlist projects) has reverted to exceptions across all years not just the current year. It also covers all major phases of a project rather than just those currently under construction.

2.3       The Level of Service exceptions cover LTP-level targets only (measures of interest to governance and the community.)

2.4       Finally, the Performance by Activity graph (Attachment C) plots service delivery and over/underspend to give a simple, one page picture of delivery v. budget across all activities. It is supported by a financial summary and breakdown of Levels of Service by Group of Activity.

 

2(b) Deep dive analysis and Section 17A Service Delivery Reviews.

The following is a recap and update on these agenda items:

2.5       These are two quite different forms of analysis. Deep dive reviews look back at opex, capex and budget performance to date. S17A reviews look ahead, asking fundamental questions around what should be delivered in future and the options for delivery. They are different but the first informs the second.

2.6       S17A reviews are a legal requirement. Reviews commenced nationally in 2015 and all councils are required to complete a rotation of their service delivery reviews by 2021. Only Council can approve the completion of a S17A review, or exemptions from review. 

2.7       S17A reviews for four areas were adopted by Council on 20 December 2017 following committee discussion along with the list of exemptions proposed by ELT.

2.8       The three triggers for S17A reviews are a) significant changes to LOS and b) reaching a point two years from the expiry of a contract to deliver services and c) a gap of six years since the last review. In 2018 a Long Term Plan was adopted with deletions and changes to levels of service. A variety of contracts are now due for renewal.

2.9       The Chair of the Finance Committee has requested S17A reviews are completed by June 2020 so they can inform the 2021 LTP process. The Chair has also expressed a preference for major infrastructure activities to be reviewed first, however we are working with the organisation to determine realistic delivery timeframes noting the upcoming major contract renewals (Attachment D).

2.10    On the face of it many of these contract renewals may automatically trigger a service delivery review. This means that scheduling reviews must be influenced by the contract renewal timetable as well as resourcing and other factors. Legal advice is being sought.

3.   Staff Recommendations

That the Finance and Performance Committee of the Whole:

1.         Receive the information in the monthly Corporate Performance Exceptions Report, Level of Service Exceptions and Commentary, and Performance by Activity reports for January 2019.

4.   Key Points

4.1       Corporate performance reports focusing on exceptions as follows:

4.1.1   Corporate Performance Exceptions Report January 2019 in Attachment A.

4.1.2   Staff forecasts as at 31 January 2019 indicate a LTP level of service achievement of 83.1%.

4.1.3   All LTP level of service exceptions and supporting commentary are set out in Attachment B.

4.1.4   Performance by Activity January 2019 - Levels of service by activity graph, comparison of forecast LOS delivery and forecast activity financials graph, and financial table in Attachment C.

4.2       Note the schedule of upcoming major contracts that may trigger service delivery reviews (S17A), the effect of this on the scheduling of Service Delivery Reviews and “deep dives”, and note that the proposed S17A review schedule will be available for the next meeting in April.

 

Attachments

No.

Title

Page

a

Corporate Performance Exceptions Report Jan 2019

38

b

LTP Level of Service delivery performance graph, exceptions and commentary Jan 2019

40

c

Performance by Activity Jan 2019

51

d

List of Contracts - Service Delivery Reviews

54

 

 

Signatories

Authors

David Price - Principal Analyst

Lerks Stedman - Performance Analyst - PL

Boyd Kedzlie - Senior Business Analyst

Approved By

Peter Ryan - Head of Performance Management

Carol Bellette - General Manager Finance and Commercial (CFO)

  


Finance and Performance Committee of the Whole

07 March 2019

 

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07 March 2019

 

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Finance and Performance Committee of the Whole

07 March 2019

 


 


 


Finance and Performance Committee of the Whole

07 March 2019

 

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Finance and Performance Committee of the Whole

07 March 2019

 

 

9.        Community Facilities Earthquake Rebuild Programme Bi-Monthly Update February 2019

Reference:

19/145066

Contact:

Darren Moses

Darren.moses@ccc.govt.nz

021377023

 

 

1.   Purpose and Origin of Report

Purpose of Report

1.1       The purpose of this report is for the Finance and Performance Committee of the Whole to be informed of the current status of the remaining earthquake repair and rebuild projects being delivered by Facilities Rebuild team.

Origin of Report

1.2       This report is staff generated.

2.   Significance

2.1       Not applicable to this information-only report. 

3.   Staff Recommendations

That the Finance and Performance Committee of the Whole:

1.         Receives the information in the Community Facilities Rebuild Bi-Monthly Update report.

 

 

4.   Key Points

4.1       This information-only report provides a bi-monthly update on the remaining projects in the Facilities Rebuild earthquake programme for February 2019.

4.2       A summary of the yet to complete Community Facilities projects and Heritage Facilities projects can be found in Attachment A.

4.3       The majority of the earthquake repair and rebuild programme that began in 2012 is currently scheduled to be completed by the end of 2019/2020 Financial Year. 

4.4       The EQ programme now represents only 15% of the department’s workload.  The department is tasked with delivery of 207 BAU capital projects in this financial year to a value of $84M.

 

 

5.   Context/Background

5.1       The Council committed to running an earthquake assessment, insurance claim and repair and rebuild programme of it’s suburban community facilities.   There are over 1000 such assets. This work is undertaken by the Facilities Rebuild team in the Citizens and Community Group.

5.2       Since 2012, this team have delivered numerous repairs and rebuild of key suburban Council facilities all over Christchurch City and across Banks Peninsula, detailed in Attachment A.

 

 

Attachments

No.

Title

Page

a

Finance & Performance Committee February 2019 Community Facilities Rebuild and Heritage bimonthly Report_ attachment 1.docx

57

 

 

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

Darren Moses - Manager Capital Delivery Community

Approved By

Mary Richardson - General Manager Citizen and Community

  


Finance and Performance Committee of the Whole

07 March 2019

 

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Finance and Performance Committee of the Whole

07 March 2019

 

 

10.    Christchurch Town Hall Project Monthly Update

Reference:

19/154787

Presenter(s):

John Rossetter - Project Director
Alistair Pearson - Manager Capital Delivery Major Facilities

 

 

1.   Purpose and Origin of Report

Purpose of Report

1.1       The purpose of this report is for the Finance and Performance Committee of the Whole to be updated as to the current status of the Town Hall Rebuild Project.

Origin of Report

1.2       This report was requested by the Council under resolution CNCL/2018/00312.

That the Council requests that the project provides a monthly status report to Finance and Performance Committee.

 

2.   Staff Recommendations

That the Finance and Performance Committee of the Whole:

1.         Receives the Christchurch Town Hall Project Monthly Update report.

3.   Context/Background

3.1       Under Council resolution dated 19 December 2018 the budget for the Town Hall Rebuild Project was increased by up to $15M to a total budget allowance of up to $167.2M. The staged completion of the project as described below was also noted by the Council:

·   Auditorium, Foyer, Function and Limes rooms - 20 February 2019.

·   James Hay Theatre - 5 April 2019.

·   Christchurch Symphony Orchestra rehearsal building (CSO) – Certificate of Public Use (CPU) 7 May 2019 and project completion 15 August 2019.

3.2       Under this resolution the Council also agreed that the additional funding would be allocated from within the existing capital programme and would not affect rates. The Council requested that a report be presented to the Finance and Performance Committee detailing the savings identified across the multi-year capital programme that will enable the additional funding to be allocated to the project. The Council noted that no approval was given to delay or re-scope projects beyond the existing delegations.

4.   Project Status

Programme

4.1       The date for the stage one handover of the auditorium, function and limes rooms remains unchanged as 20 February 2019.

4.2       The latest submission of the construction programme was received 11 February 2019 and remains under review.

Progress

Construction

4.3       Works within the areas forming the first staged handover are undergoing defect rectification and cleaning.

4.4       In the auditorium the tuning of the organ has been completed, flat floor and choir bench seating have been installed and the commissioning of building services is now well progressed.

4.5       The entrance foyer, function and Limes rooms are all approaching completion with the removal of protections and cleaning underway.

4.6       Works within the James Hay Theatre, kitchen and Christchurch Symphony Orchestra rehearsal building (CSO), which form the subsequent stages of handover, continue to progress.

4.7       Externally works are now well progressed within the areas forming the first staged handover. Ongoing site operations will shortly be segregated according to the contractor’s site management plans.

Establishment

4.8       The fitting out of the auditorium is taking shape with sound and lighting now in place.

4.9       Furniture is now on site and being distributed throughout the entrance foyer, bars and auditorium concourses.

4.10    The fitting out of the bars is now largely complete.

4.11    Opening events have now been confirmed and announced.  Open days for the public are scheduled for Saturday 23 and Sunday 24 February prior to the official opening on Saturday 2 March 2019.

5.   Financial

5.1       The total estimated final project cost remains within the total budget allowance of $167.2M.

5.2       Staff are in the process of finalising a report to the Finance and Performance Committee of the Whole. This will outline potential savings across the capital programme to enable the additional funding to be allocated to the Town Hall Rebuild Project. The report is being prepared on the understanding that savings should be identified from capital adjustments arising from existing planned programme revisions, rather than through adjustments made to accommodate the increased Town Hall Rebuild Project budget.

 

Attachments

There are no attachments to this report.

 

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

Harriet Scott - Project Coordinator

John Rossetter - Project Director

Approved By

Alistair Pearson - Manager Capital Delivery Major Facilities

Mary Richardson - General Manager Citizen and Community

  


Finance and Performance Committee of the Whole

07 March 2019

 

 

11.   New Brighton Pier Project Closeout Summary

Reference:

19/206711

Presenter(s):

Ged Clink – Head of Programme Management Office
David Adamson – General Manager, City Services
and Heads of Delivery

 

 

1.   Purpose of Report

1.1       The Purpose of this report is for the Finance and Performance Committee of the Whole to be informed of the New Brighton Pier Project Closeout Summary.

 

2.   Staff Recommendations

That the Finance and Performance Committee of the Whole:

1.         Receive the information in the Project Closeout Summary for New Brighton Pier.

 

 

 

 

 

Attachments

No.

Title

Page

a

New Brighton Pier Project Closeout Summary

92

 

 

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

Ged Clink - Head of Programme Management Office

Approved By

Carolyn Gallagher - Programme Director – Strategic Support

Carol Bellette - General Manager Finance and Commercial (CFO)

  


Finance and Performance Committee of the Whole

07 March 2019

 

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Finance and Performance Committee of the Whole

07 March 2019

 

 

12.    Regenerate Christchurch Ltd - Half year performance report for period 1 July - 31 December 2018

Reference:

19/7361

Presenter(s):

Ivan Iafeta - Chief Executive, Regenerate Christchurch

 

 

1.   Purpose and Origin of Report

Purpose of Report

1.1       The purpose of this report is for the Finance and Performance Committee of the Whole to note Regenerate Christchurch’s performance for the half year 1 July - 31 December 2018, and the preliminary funding implications for the future.

Origin of Report

1.2       This report is staff generated following receipt of the performance report from Regenerate Christchurch. 

2.   Significance

2.1       The decisions in this report are of low significance in relation to the Christchurch City Council’s Significance and Engagement Policy.  The level of significance was determined by the extent to which the decisions in this report are likely to impact the community.

 

3.   Staff Recommendations

That the Finance and Performance Committee of the Whole:

1.         Note the attached performance reports from Regenerate Christchurch and Council and the Department of the Prime Minister and Cabinet staff; and

2.         Request Council staff to urgently review the Regenerate Christchurch Forward Work Programme and associated financial implications and report back to Council. 

 

4.   Key Points

4.1       Attached to this report are the following Regenerate Christchurch-related reports:

·    Its quarterly report for the period 1 October to 31 December 2018;

·    A Memo from the Chief Executive dated 21 February 2019 providing an update on progress since 31 December 2018; and

·    Council and Department of the Prime Minister (DPMC) and Cabinet’s joint staff report on Regenerate Christchurch’s performance for the quarter ending 31 December 2018.

4.2       At its meeting on 22 November 2018, the Council asked staff to report back with a review of Regenerate Christchurch’s future funding requirements (CNCL/2018/00275 refers).  This resolution was also referred to as part of the Council accepting the draft 2019 Annual Plan.  Council staff (in conjunction with DPMC) requested that this information be provided to Council (and DPMC) officers by late January 2019 to be analysed and reported to the March 2019 meeting of the Finance and Performance Committee. 

4.3       At the time of writing this report, Regenerate Christchurch had provided a Forward Work Programme to the Mayor and Minister (22 February) however staff understand that further information is still to be received.  This means that there has been no time for the analysis required to enable staff to provide advice.  It is noted that the Forward Work Programme did not include any proposed changes or commentary as to their level of funding. 

It is proposed that Council staff will bring the Regenerate Christchurch Forward Work Programme to a meeting of Council in the near future for Council deliberation. 

Board appointments

4.4       Section 127(1) of the Greater Christchurch Regeneration Act 2016 (the Act) provides that the Regenerate Christchurch board comprises seven members, three appointed by the Council and four by the Minister.  Section 128 of the Act provides that the Chair of the board must be appointed by the Council for the period beginning 1 July 2019 and ending on the close of 30 June 2021. 

4.5       Currently the Regenerate Christchurch board has five members, following the recent exits of the Chairs of the Ōtākaro Ltd and Development Christchurch Ltd boards.  Mr Butler exited his role as Chair of Ōtākaro Ltd last year and was not replaced by the Crown.  Mr Dwyer’s term on the Regenerate Christchurch board expired in mid-February and Council staff understand that he does not wish to be reappointed, notwithstanding he remains the Chair of DCL. 

4.6       Having made inquiries of Regenerate Christchurch staff in January, Council staff were advised that the board would be raising the issue of director appointments directly with shareholders.  They also confirmed that the board could operate legally and practically with two fewer members, and that a quorum of four is required for decisions to be made.

4.7       Due to work on the future institutional arrangements for the Christchurch regeneration sector concluding shortly, coupled with decisions pending on Regenerate Christchurch’s future work programme, Council and DPMC staff recommend that new appointments to the Regenerate Christchurch board be put on hold until there is clarity on these matters.

4.8       The terms of the Council’s two appointees to the board, Humphrey Rolleston and Jen Crawford expire on 30 June 2019.  The Chair’s appointment (by the Crown) expires on 30 June also, and a new Chair will be a matter for the Council to decide.

 

 

 

Attachments

No.

Title

Page

a

Regenerate Christchurch - Quarterly Performance Report for 1 October - 31 December 2018

106

b

Regenerate Christchurch - Memo from Chief Executive of Regenerate Christchurch on progress

108

c

Joint Council and Department of the Prime Minister and Cabinet quarterly report on Regenerate Christchurch's performance for the quarter ending 31 December 2018

110

 

 

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

Len Van Hout - Manager External Reporting & Governance

Diane Brandish - Head of Financial Management

Carol Bellette - General Manager Finance and Commercial (CFO)

  


Finance and Performance Committee of the Whole

07 March 2019

 

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07 March 2019

 

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Finance and Performance Committee of the Whole

07 March 2019

 

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Finance and Performance Committee of the Whole

07 March 2019

 

 

13.   Christchurch City Holdings Ltd - Interim Report 2019

Reference:

19/215968

Presenter(s):

Leah Scales - Chief Financial Officer,  CCHL

 

 

1.   Purpose of Report

1.1       This report presents Christchurch City Holdings Ltd’s (CCHL’s) Interim Report 2019, which was released to the market on 26 February 2019.

2.   Executive Summary

2.1       CCHL’s Interim Report for the period 1 July to 31 December 2018 is attached, presenting an unaudited group net profit after tax of $56.7 million, ahead of the same period last year by $6 million.

2.2       The Interim Report was released to the market on 26 February as required under the NZX disclosure rules.

 

3.   Staff Recommendations

That the Finance and Performance Committee of the Whole:

1.         Notes the content of this report and the attached Christchurch City Holdings Ltd Interim Report for 2019.

4.   Key Points

4.1       In accordance with its disclosure obligations under the NZX listing rules, CCHL has reported its interim results for the period 1 July – 31 December 2018 to the market.  The Interim Report is at Attachment A.

4.2       The report contains CCHL’s unaudited financial results for the consolidated group, the CCHL parent and each of its subsidiaries, and a report presenting the group’s highlights for the period.  Key financial information includes:

·    Net profit after tax $56.7 million has been contributed mostly by Orion $29.0 million, Christchurch International Airport Ltd (CIAL) $24.3 million, Lyttelton Port (LPC) $6.3 million.

·    Compared with the six months to 31 December 2017, net profit after tax has increased by $6.0 million due to the following:

growth in CIAL’s non-aeronautical activities, $5 million;

a first-time profit from Enable of $0.9 million, giving a variance between years of $4.5 million, as a result of achieving connections ahead of expectations;

lower demand for electricity due to the mild winter in 2018, lowering Orion’s profit by $1.7 million; and

reduced profit from LPC of $2.4 million reflecting ongoing difficulties with coastal container volumes due to scheduling issues at the Port of Auckland, and efficiency disruption due to ongoing union negotiations.

4.3       City Care, EcoCentral and Red Bus are facing challenging times due to market competitiveness for City Care, and uncertainties in future contracts for Red Bus and EcoCentral services / products.  Development Christchurch has recorded a $2.4 million profit, however this is largely the result of revenue received from the Council at the beginning of the year, to fund its full year’s costs.

4.4       The group has total assets of $4.2 billion, owned for the most part by Orion ($1.2 billion), CIAL ($1.6 billion) LPC ($0.5 billion) and Enable ($0.5 billion).

4.5       The group’s debt stands at $1.8 billion and equity at $1.9 billion.  It has annualised returns on assets of 2.7% and equity of 6% (note that assets were last revalued at 30 June 2018).

4.6       During the period, CCHL made dividend payments to the Council of $92 million (ordinary $22 million and special $70 million) and will follow up in the second half of the year with further payments of $96.3 million.

4.7       On 26 March, CCHL is scheduled to present the group’s draft Statements of Intent for the three year period beginning 2020/21.  At this time, CCHL will have information about the expected full year profit outturn for the group in the current financial year, as well as projections for the SOI period.

 

 

Attachments

No.

Title

Page

a

Christchurch City Holdings Ltd Interim Report 2019

113

 

 

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

Len Van Hout - Manager External Reporting & Governance

Diane Brandish - Head of Financial Management

Carol Bellette - General Manager Finance and Commercial (CFO)

  


Finance and Performance Committee of the Whole

07 March 2019

 

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Finance and Performance Committee of the Whole

07 March 2019

 

 

14.    Council-controlled organisations - Half year reports for the period 1 July - 31 December 2018

Reference:

19/6878

Presenter(s):

Linda Gibb - Performance Advisor

 

 

1.   Purpose and Origin of Report

Purpose of Report

1.1       The purpose of this report is for the Finance and Performance Committee of the Whole to note the half year reports for the period 1 July – 31 December 2018 for Central Plains Water Trust, Christchurch Agency for Energy Trust, Civic Building Ltd, Riccarton Bush Trust, and Rod Donald Banks Peninsula Trust.

Origin of Report

1.2       This report is staff generated as a result of receiving the Council-Controlled Organisations (CCO) half year reports. 

2.   Significance

2.1       The decisions in this report are of low significance in relation to the Christchurch City Council’s Significance and Engagement Policy.  The level of significance was determined by assessing the extent to which the community may be impacted by the decisions in this report. 

 

3.   Staff Recommendations

That the Finance and Performance Committee of the Whole:

1.         Note the contents of this report, and its attachments.

 

4.   Key Points

4.1       This report summarises the half year (1 July 2018 -31 December 2018) performance for the following CCOs:

·    Central Plains Water Trust (refer Attachment A);

·    Christchurch Agency for Energy Trust (refer Attachment B);

·    Civic Building Ltd (refer Attachment C) ;

·    Riccarton Bush Trust (refer Attachment D); and

·    Rod Donald Banks Peninsula Trust (refer Attachment E).

 

5.   Context/Background

Performance summaries

5.1       Section 66 of the Local Government Act 2002 provides that:

“Within 2 months after the end of the first half of each financial year, the board of a council-controlled organisation must deliver to the shareholders a report on the organisation’s operations during that half year.  The report must include the information required to be included by its statement of intent”.

5.2       The following tables set out key financial performance information for each CCO, for the period 1 July 2018 to 31 December 2018, compared with its half-year target and the same period in the previous financial year. 

CCO

Actual

$

Target

$

Prior Half Year Actual

$

Central Plains Water: fully funded costs

40,410

Not forecast for half year

37,918

Against last year, expenditure increased by $2,492, as a result of increased trustees’ honorarium of $7,650 less administration cost reductions of $5,110.  In the current half year, costs were incurred for developing the 2017/18 Annual Sustainability Report (attached to the Trust’s half year report at Attachment 1).  The corresponding period for last year included costs for both the 2016 and 2017 reports. 

The costs borne by the Trust are fully funded by Central Plains Water Ltd, the board of which agreed to the increased honorarium for the trustees before it was implemented.

Christchurch Agency for Energy

(373,503)

(43,500)

(231,410)

Against last year, the deficit is higher by $142,093 largely reflecting the higher value of grants paid in 2018 ($130,947), reduced interest income of $8,753 due to the depletion in cash as grants are paid and an increase in administration expenses of $2,393 due in part to addressing issues relating to the forthcoming wind-up of the Trust, and accounting charges that, last year, fell in the second half of the year. 

Against target, the deficit is higher by $330,003 as a result of paying out grants to a value that was previously expected to have been paid in an earlier time period.  Interest revenue was higher by $6,622 reflecting the delay in paying out grant monies.  Other expenses were higher by $2,393 for the same reasons as the variance with last year.

Non-financial performance targets, the Trust allocated five grants totalling $57,000 during the six months to 31 December 2018.  It is considering options for the remaining $168,388 in unallocated funds after which the Trust will be wound up.  The Trust is hoping to wind-up by the end of June 2019.

Civic Building Ltd (CBL)

Before tax

(175,000)

Before tax

(173,000)

Before tax

(698,000)

Against last year, the 2018 loss of $175,000 is $523,000 lower, due to an average 2% decrease in the interest rate which has reduced financing costs by $540,000.

Against target, CBL’s half year profit before tax is in line with expectations. 

Financial Position, total assets: $58.8 million; debt $56,388.   

Non-financial performance targets, the company has met its two non-financial performance targets – that the building is managed in accordance with the management agreement; and the building is operating in a manner consistent with a 6 Green Star rating facility (as advised by the Council’s Facilities Management Team). 

 


 

 

Trust (non-taxable)

Actual Surplus/

(Deficit)

$

Target Revenue and Expense

 

$

Prior Half Year Actual

 

$

Riccarton Bush

(61,251)

278,000

(113,549)



Against last year, the Trust’s deficit of $61,251 is lower than the prior year’s by $52,298, made up of additional income of $42,827 and reduced costs of $9,471. 

Additional income includes $21,000 of capital funding and increased operating levy from the Council.  Revenue gains of $7,526 were made from commission and rental from Local (the on-site café) which includes a rental increase on lease renewal.  The restaurant has had a very good half year, partly as a result of focussing on customer service and from an increase in independent tour groups visiting the House.  The increase in tour groups contributed to a heritage revenue gain of $3,458.  Book sales increased by $1,551, particularly from strong sales of ‘Riccarton and Deans Family’ by Joanna Orwin which were acquired by the Trust at very low cost and sales of the revised book by Jane Deans “Letters to my Grandchildren”.  Rental income from the Ranger’s House increased by $2,954, (it was not tenanted for the full period in the 2017 half year as it was being rebuilt), and donations increased by $6,896, mostly represented by a discretionary capital grant of $4,371 from the community board and commission from the Saturday market (which had one extra operating day over the previous year).

Operating costs were lower by $9,471, due to there being zero project expenses this year against last year’s $29,916 (project costs written off including bus turning area).  This is offset by a $10,000 increase in depreciation relating to assets acquired in the past year and a $7,685 increase in employee expenses, which is a payroll timing issue that will correct in the next accounting period. 

Against target (excluding depreciation and project costs), revenue increased by $13,068 mostly attributable to the capital grants from the Council and the community board (together $16,871), the timing of which was uncertain at the time the budget was finalised.  This was offset by lower commission from Local of $2,000 and door sales and tours of $3,000 during the winter months (the budget does not incorporate seasonal trends).  Higher rainfall than expected during these months exacerbated the variance.  Operating costs were under budget by $4,240 largely due to lower insurance costs.

Financial position, the Trust has total assets of $16.4 million, the majority of which are attributable to Riccarton House and contents and operational equipment (e.g. for maintenance).

Non-financial performance targets, the Trust expects to achieve its non-financial targets by June 2019, with the following caveats:

·    work on refitting and upgrading toilets is dependent of funding being obtained through the Trust’s funding bids to charitable organisations; and

·    the target to reduce feral pigeons to numbers that will not cause significant nuisance is proving challenging.

In response to recent comments made by Councillors, the Trust has a donation box in the Bush that returns around $4,000 per annum, and a new box has been installed at the doorway to the House which is contributing around $10 per week; and the canopy viewing project is programmed to proceed in 2021/22.


 

Trust (non-taxable)

Actual Surplus/

(Deficit)

$

Target Operating Surplus/ (Deficit)

$

Prior Half Year

Actual

$

Rod Donald Banks Peninsula:

     Operating surplus/(deficit)

     Grants & project expenses

 

(48,317)

(280,534)

 

71,792

(146,000)

 

(7,544)

(248,850)

Trust operations against last year, the deficit increased by $40,773 which is made up of lower interest revenue of $7,775 on declining investments held by the Trust ($300,000 lower since 30 June 2018), a change in allocation of expenditure in the current year from grants and project expenses to operating expenses which in total accounts for $25,711, and an increase in other expenses of $7,287.  The key drivers of the increase in other expenses are $4,233 for operating and maintenance costs of the Rod Donald hut, a depreciation adjustment of $4,130 relating to a prior period, an increase in minor projects of $5,044 partly from the development of a Strategic Plan booklet and video for the first time.  These increased costs were offset by reduced grants and commitments to partners of $9,250 reflecting the finalisation of a new agreement with Orton Bradley Park is yet to occur. The Trust is reducing its grant commitments in line with its declining funds. 

Trust operations against target, the variance of $120,109 is largely a result of lower revenue of $98,445 due to a sale of land (Grehan Valley Road (Woodills)) which will now occur in the second half of the 2018/19 financial year.  Higher operating costs of $23,650 reflect the changed coding of particular expenses as described in the above section) and costs that have been charged in large part in the first half of the year which will even out by the end of the second quarter.  Higher minor project expenses of $5,056 include production of a strategic plan booklet and video.  Lower trust management costs by $6,552 were due to fewer hours charged by the Trust Manager than had been expected.

Project grants/expenditure against last year, was lower by $58,228 because the Quail Island and Te Ara Pataka track section projects were completed during the current period; and against target was higher by $134,534 because of the unexpected early opportunity to acquire land that secures public access to Te Ara Pataka.  

Financial position:  The Trust has total assets of $2.6 million.

Non-financial performance targets, the Trust has achieved a number of its non-financial performance targets, and expects all others to be completed by the end of the financial year. 

 

 

Attachments

No.

Title

Page

a

Central Plains Water Trust - Half year report to 31 December 2018 and Annual Sustainability Report 2017/18

158

b

Christchurch Agency for Energy Trust - Half year report for 31 December 2018

225

c

Civic Building Ltd - Half year report to 31 December 2018

234

d

Riccarton Bush Trust: Half year report to 31 December 2018

243

e

Rod Donald Banks Peninsula Trust - Half year report to 31 December 2018

253

 

 

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

Len Van Hout - Manager External Reporting & Governance

Diane Brandish - Head of Financial Management

Carol Bellette - General Manager Finance and Commercial (CFO)

  


Finance and Performance Committee of the Whole

07 March 2019

 

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Finance and Performance Committee of the Whole

07 March 2019

 

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Finance and Performance Committee of the Whole

07 March 2019

 

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07 March 2019

 

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07 March 2019

 

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Finance and Performance Committee of the Whole

07 March 2019

 

 

15.   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 of the Whole

07 March 2019

 

 

 

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

16

Public Excluded Finance and Performance Committee of the Whole Minutes - 7 February 2019

 

 

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

 

17

Christchurch City Holdings Ltd - Performance report for Quarter 2, ending 31 December 2018

s7(2)(h)

Commercial Activities

Contains commercial information that would disadvantage the CCHL group's profitability if provided to the market.

When the information is fully known to the market, and with the approval of the Chief Executive of the Council and CCHL.

18

ChristchurchNZ Holdings Ltd - Half year performance report for period 1 July - 31 December 2018

s7(2)(b)(ii)

Prejudice Commercial Position

The report contains information that is sensitive and could lead to losses if competitors were to become aware of it.

After the annual report for 2018/19 has been released publicly.

19

Vbase Ltd: Half year performance report 1 July - 31 December 2018

s7(2)(h)

Commercial Activities

This report contains commercially sensitive information that could prejudice Vbase's financial position if it became known to competitors.

After release of the 2018/19 annual report to the public, and with the approval of the Chief Exeutives of the Council and Vbase

20

Social Housing RFT

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

Prejudice Commercial Position, Commercial Activities, Conduct Negotiations

Commercial sensitivity around tendered prices and publication of the information will prejudice the commercial position of the Tenderer.

31 January 2020

31 January 2020 or at an earlier date when the Chief Executive determines there are no longer grounds under the Act for withholding the report.