Finance and Performance Committee

Agenda

 

 

Notice of Meeting:

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

 

Date:                                    Thursday 24 March 2022

Time:                                   9.30am

Venue:                                 Held by Audio/Visual Link

Under the current provisions of the Covid-19 Protection Framework (traffic lights) the meeting is open to the public through access to the live broadcasting of the meeting: http://councillive.ccc.govt.nz/live-stream

 

 

Membership

Chairperson

Deputy Chairperson

Members

Deputy Mayor Andrew Turner

Councillor Sam MacDonald

Mayor Lianne Dalziel

Councillor Jimmy Chen

Councillor Catherine Chu

Councillor Melanie Coker

Councillor Pauline Cotter

Councillor Mike Davidson

Councillor Celeste Donovan

Councillor Anne Galloway

Councillor James Gough

Councillor Yani Johanson

Councillor Aaron Keown

Councillor Phil Mauger

Councillor Jake McLellan

Councillor Tim Scandrett

Councillor Sara Templeton

 

 

18 March 2022

 

 

Principal Advisor

Leah Scales

Acting General Manager - Resources / CFO

Tel: 941 8999

Principal Advisor

Dawn Baxendale

Chief Executive

Tel: 941 6996

 

 

David Corlett

Committee and Hearings Advisor

941 5421

david.corlett@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

24 March 2022

 

Finance and Performance Committee of the whole - Terms of Reference Ngā Ārahina Mahinga

 

Chair

Deputy Mayor Turner

Deputy Chair

Councillor MacDonald

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

 

Delegations

The Council delegates to the Finance and Performance Committee authority to oversee and make decisions on:

 

Capital Programme and operational expenditure

·         Monitoring the delivery of the Council’s Capital Programme and associated operational expenditure, including inquiring into any material discrepancies from planned expenditure.

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

·         Approving Capital Programme business and investment cases, and any associated operational expenditure, as agreed in the Council’s Long-Term Plan.

·         Approving any capital or other carry forward requests and the use of operating surpluses as the case may be.

·         Approving the procurement plans (where applicable), preferred supplier, and contracts for all capital expenditure where the value of the contract exceeds $15 Million (noting that the Committee may sub delegate authority for approval of the preferred supplier and /or contract to the Chief Executive provided the procurement plan strategy is followed).

·         Approving the procurement plans (where applicable), preferred supplier, and contracts, for all operational expenditure where the value of the contract exceeds $10 Million (noting that the Committee may sub delegate authority for approval of the preferred supplier and/or contract to the Chief Executive provided the procurement plan strategy is followed).

 

Non-financial performance

·         Reviewing the delivery of services under s17A.

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

·         Exercising all of the Council's powers under section 17A of the Local Government Act 2002, relating to service delivery reviews and decisions not to undertake a review.

 

Council Controlled Organisations

·         Monitoring the financial and non-financial performance of the Council and Council Controlled Organisations.

·         Making governance decisions related to Council Controlled Organisations under sections 65 to 72 of the Local Government Act 2002.

·         Exercising 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 –

o   (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; and

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

 

Development Contributions

·         Exercising all of the Council's powers in relation to development contributions, other than those delegated to the Chief Executive and Council officers as set out in the Council's Delegations Register.

 

Property

·         Purchasing or disposing 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.

 

Loans and debt write-offs

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

·         Approving amendments to loans, in accordance with the Council’s Long-Term Plan.

 

Insurance

·         All 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 (Sub-delegated to the Insurance Subcommittee as per the Subcommittees Terms of Reference)

 

Annual Plan and Long Term Plan

·         Provides oversight and monitors development of the Long Term Plan (LTP) and Annual Plan.

·         Approves the appointment of the Chairperson and Deputy Chairperson of the External Advisory Group for the LTP 2021-31.

 

Submissions

·         The Council delegates to the Committee authority:

·         To consider and approve draft submissions on behalf of the Council on topics within its terms of reference. Where the timing of a consultation does not allow for consideration of a draft submission by the Council or relevant Committee, that the draft submission can be considered and approved on behalf of the Council.

 

Limitations

·         The general delegations to this Committee exclude any specific decision-making powers that are delegated to a Community Board, another Committee of Council or Joint Committee. Delegations to staff are set out in the delegations register.

·         The Council retains the authority to adopt policies, strategies and bylaws.

 

The following matters are prohibited from being subdelegated in accordance with LGA 2002 Schedule 7 Clause 32(1) :

·         the power to make a rate; or

·         the power to make a bylaw; or

·         the power to borrow money, or purchase or dispose of assets, other than in accordance with the long-term plan; or

·         the power to adopt a long-term plan, annual plan, or annual report; or

·         the power to appoint a chief executive; or

·         the power to adopt policies required to be adopted and consulted on under this Act in association with the long-term plan or developed for the purpose of the local governance statement; or

·         the power to adopt a remuneration and employment policy.

 

Chairperson may refer urgent matters to the Council

As may be necessary from time to time, the Committee Chairperson is authorised to refer urgent matters to the Council for decision, where this Committee would ordinarily have considered the matter. In order to exercise this authority:

·         The Committee Advisor must inform the Chairperson in writing the reasons why the referral is necessary

·         The Chairperson must then respond to the Committee Advisor in writing with their decision.

·         If the Chairperson agrees to refer the report to the Council, the Council may then assume decision making authority for that specific report.

 

Urgent matters referred from the Council

As may be necessary from time to time, the Mayor is authorised to refer urgent matters to this Committee for decision, where the Council would ordinarily have considered the matter, except for those matters listed in the limitations above.

 

In order to exercise this authority:

·         The Council Secretary must inform the Mayor and Chief Executive in writing the reasons why the referral is necessary

·         The Mayor and Chief Executive must then respond to the Council Secretary in writing with their decision.

 

If the Mayor and Chief Executive agrees to refer the report to the Committee, the Committee may then assume decision-making authority for that specific report.

 


Finance and Performance Committee

24 March 2022

 

Part A           Matters Requiring a Council Decision

Part B           Reports for Information

Part C           Decisions Under Delegation

 

 

TABLE OF CONTENTS

 

Karakia Tīmatanga................................................................................................... 7 

C          1.        Apologies Ngā Whakapāha.......................................................................... 7

B         2.        Declarations of Interest Ngā Whakapuaki Aronga........................................... 7

C          3.        Confirmation of Previous Minutes Te Whakaāe o te hui o mua.......................... 7

B         4.        Public Forum Te Huinga Whānui.................................................................. 7

B         5.        Deputations by Appointment Ngā Huinga Whakaritenga................................. 7

B         6.        Presentation of Petitions Ngā Pākikitanga.................................................... 7

Staff Reports

B         7.        Key Performance Results February 2022..................................................... 17

B         8.        Corporate Finance Report - Feburary 2022.................................................. 37

B         9.        Capital Project Performance Report - February 2022.................................... 47

B         10.      Close Out Report - Victoria Street (An Accessible City)................................... 89

C          11.      Electricity Procurement.......................................................................... 109

B         12.      Council-controlled organisations - Half year reports for the six months ending 31 December 2021...................................................................................... 129

b         13.      ChristchurchNZ Holdings Ltd - Interim Report for the six months to 31 December 2021..................................................................................................... 249

B         14.      Venues Ōtautahi - Interim Report for the six months to 31 December 2021..... 269

B         15.      Transwaste Canterbury Ltd - Annual Report 2020/21................................... 299

C          16.      Riccarton Bush Trust - Performance Report for the six months to 31 December 2021 and draft Statement of Intent for 2022/23.................................................. 375

B         17.      Te Kaha Project - Elected Member Update.................................................. 399  

C          18.      Resolution to Exclude the Public.............................................................. 401

Karakia Whakamutunga

 


Finance and Performance Committee

24 March 2022

 

 

Karakia Tīmatanga

1.   Apologies Ngā Whakapāha  

At the close of the agenda no apologies had been received.

2.   Declarations of Interest Ngā Whakapuaki Aronga

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 Te Whakaāe o te hui o mua

That the minutes of the Finance and Performance Committee meeting held on Thursday, 24 February 2022  be confirmed (refer page 8).

4.   Public Forum Te Huinga Whānui

A period of up to 30 minutes will be available for people to speak for up to five minutes on any issue that is not the subject of a separate hearings process.

 

There were no public forum requests received at the time the agenda was prepared

5.   Deputations by Appointment Ngā Huinga Whakaritenga

Deputations may be heard on a matter or matters covered by a report on this agenda and approved by the Chairperson.

 

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

6.   Presentation of Petitions Ngā Pākikitanga

6.1

Dr Tracey McLellan - MP for Banks Peninsula will present a petition of 316 signatures from the Bromley community calling on the Christchurch City Council to move the Living Earth compost plant.

 

Petition request:

 

The Bromley community calls on the Christchurch City Council to move the Living Earth compost plant.

 

Reason:

 

The plant has been emitting offensive odours for a long time, significantly and negatively impacting the lives of nearby residents. The local community has expressed concern that proposals to redevelop the facility would not succeed in eliminating the odours. Relocating the plant to a non-residential area is the only solution that would ensure the odour problem is resolved for long suffering Bromley residents.

 


Finance and Performance Committee

24 March 2022

Unconfirmed

 

 

Finance and Performance Committee

Open Minutes

 

 

Date:                                    Thursday 24 February 2022

Time:                                   9.02am

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

 

 

Present

Chairperson

Deputy Chairperson

Members

Deputy Mayor Andrew Turner

Councillor Sam MacDonald

Mayor Lianne Dalziel

Councillor Jimmy Chen

Councillor Catherine Chu -  via audio/visual link

Councillor Melanie Coker

Councillor Pauline Cotter

Councillor Mike Davidson

Councillor Celeste Donovan

Councillor Anne Galloway

Councillor James Gough -  via audio/visual link

Councillor Yani Johanson -  via audio/visual link

Councillor Aaron Keown

Councillor Phil Mauger

Councillor Jake McLellan -  via audio/visual link

Councillor Tim Scandrett

Councillor Sara Templeton

 

 

 

 

 

 

Principal Advisor

Leah Scales

Acting General Manager - Resources / CFO

Tel: 941 8999

Principal Advisor

Dawn Baxendale

Chief Executive

Tel: 941 6996

 

David Corlett

Committee and Hearings Advisor

941 5421

david.corlett@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

 

 

 

Karakia Tīmatanga: Deputy Mayor Turner     

 

The agenda was dealt with in the following order.

1.   Apologies Ngā Whakapāha

Part C

Committee Resolved FPCO/2022/00001

That the apologies received from Mayor Lianne Dalziel  for lateness be accepted.

Deputy Mayor/Councillor MacDonald                                                                                                               Carried

 

2.   Declarations of Interest Ngā Whakapuaki Aronga

Part B

Councillor Scandrett declared an interest in Item 16 relating to Venues Ōtautahi.

The Mayor and Deputy Mayor Turner noted they are Trustees on the Board of the Christchurch Foundation (Item 18).

The Mayor, Deputy Mayor Turner and Councillors Gough and Templeton are directors on the Board of Christchurch City Holdings Limited (Item15 and Public Excluded Items 21 and 22)

 

3.   Confirmation of Previous Minutes Te Whakaāe o te hui o mua

Part C

Committee Resolved FPCO/2022/00002

That the minutes of the Finance and Performance Committee meeting held on Wednesday, 15 December 2021 be confirmed.

Deputy Mayor/Councillor MacDonald                                                                                                               Carried

4.   Public Forum Te Huinga Whānui

Part B

There were no public forum presentations.

5.   Deputations by Appointment Ngā Huinga Whakaritenga

5.1      Presentation from Helen Broughton

Part B

Helen Broughton spoke in relation to Item 14 Resource Management Reform – Draft Submission on MfE Consultation.

Attachments

a       Presentation Helen Broughton  

6.   Presentation of Petitions Ngā Pākikitanga

Part B

There was no presentation of petitions.

 

Councillor Keown joined the meeting at 9.08am during Item 7.

Councillor Chu joined the meeting at 9.08am (via audio visual link) during Item 7.

 

7.   Vertical Capital Delivery Elected Member Updates

 

Committee Resolved FPCO/2022/00003 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee: Officer Recommendation

1.         Receives the information within the Elected Members Updates of the Vertical Capital Delivery:

a.         Parakiore Metro Sports Facility.

b.         Performing Arts Precinct.

c.         Hornby Library, Service Centre and South West Leisure Centre.

d.         The Square and Surrounds.

e.         Old Municipal Chambers (OMC).

Deputy Mayor/Councillor Cotter                                                                                                                         Carried

 

 

Councillor McLellan joined the meeting (via audio/visual link) at 9.30am during Item 8.

8.   Parakiore - Accessibility Design Features

 

After staff presented on this item, and subsequent discussion by the Committee,  this item was adjourned to allow staff to prepare wording for an alternative recommendation.  Discussion on this item resumed at the end of the meeting (see below). 

 

 

Mayor Lianne Dalziel joined the meeting at 9.48am during Item 9.

9.   Parakiore Hydroslide Accessibility

 

Committee Resolved FPCO/2022/00004 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee note that:

1.         Ōtākaro have advised that a project delay caused by design changes at this stage of the project would result in significant financial penalties. It is recommended that any design change to include a lift should be implemented after practical completion of the project.

2.         Council staff will work in partnership with the disability sector to complete an independent risk assessment that informs operational practices and determines the demand for an accessible hydroslide to inform funding in the 2024-34 Long Term Plan.

3.         The hydroslides at Parakiore will be operated in accordance with manufacture and supplier guidelines unless an independent risk assessment determines it is safe to operate outside these guidelines.

The division was declared carried by 14 votes to 3 votes the voting being as follows:

For:                          Deputy Mayor Turner, Councillor MacDonald, Mayor Dalziel, Councillor Chen, Councillor Chu, Councillor Coker, Councillor Cotter, Councillor Davidson, Councillor Donovan, Councillor Galloway, Councillor Gough, Councillor McLellan, Councillor Scandrett and Councillor Templeton

Against:                 Councillor Johanson, Councillor Keown and Councillor Mauger

Councillor Cotter/Councillor Chen                                                                                                                     Carried

 

 

 

10. Key Performance Results January 2022

 

Committee Comment

1.         Staff are to meet with the Chair and Deputy Chair to discuss the presentation of material.

2.         Staff to bring back information on those LGOIMA requests that could not be met.

 

Committee Resolved FPCO/2022/00005 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.         Receives the information provided in the Key Performance Results for January 2022.

Deputy Mayor/Councillor MacDonald                                                                                                               Carried

 

 

11. Capital Project Performance Report - December 2021

 

Committee Comment

1.         Staff to provide information on how the Council is tracking on the external funding spend, and funding for the provision of information to the Transition Team.

2.         Staff to provide updated information on Rapanui –Shag Rock (Section 3) Cycleway.

3.         Staff to provide information on the process for communicating with residents on projects such as those on page 332 of the staff report (56181- Mains Renewal).

4.         Staff to provide information on charging of residents who may not have visibility of their water meter readings.

 

 

Committee Resolved FPCO/2022/00006 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.         Receive the information in the Capital Project Performance Report, 3 Waters Delivery Enhancements, Covid-19 Impacts on Delivery, Watchlist Report, External Funded Report, and the Delivery Complete FY22 report to 31 December 2021 report

Deputy Mayor/Councillor Chen                                                                                                                           Carried

 

 

12. Corporate Finance Report - December 2021

 

Committee Resolved FPCO/2022/00007 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.         Receives the information in the Corporate Finance Report for December 2021.

Deputy Mayor/Councillor Templeton                                                                                                               Carried

 

Councillor Cotter left the meeting at 10.42am and returned at 10.45am during Item 13.

13. Te Kaha CMUA Elected Member Update

 

Committee Resolved FPCO/2022/00008 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.         Receive the information in the Te Kaha CMUA Elected Member Update report

Deputy Mayor/Councillor MacDonald                                                                                                               Carried

 

 

14. Resource Management Reform - Draft submission on MfE consultation document

 

Committee Comment

1.         Staff provided an updated draft

2.         An updated draft submission was tabled by staff (attached below)

3.         Staff to remove reference to non-complying uses.

 

Committee Recommendation Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.         Approve the draft Council submission to the Ministry for the Environment, on their Our Future Resource Management System discussion document.  (Attachment A)

    

Deputy Mayor/Councillor Davidson                                                                                                       Carried/Lost

 

Attachments

a       Draft Submission  

 

An adjournment was taken from 11am to 11.15am during the consideration of Item 14.

The following members returned to the meeting during Item 14:

Mayor Lianne Dalziel at 11.17am

Councillor Galloway at 11.18am

 

 

Councillor McDonald took the Chair  for at 11.23am for Items 15 and 19.

Councillor Donovan returned to the meeting at 11.26am.

 

15. Christchurch City Holdings Ltd - Quarter 2 2021/22 Traffic Lights Report

 

Committee Resolved FPCO/2022/00009 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.         Receives Christchurch City Holdings Ltd’s Quarter 2, 2021/22 Traffic Lights report.

Councillor MacDonald/Councillor Chen                                                                                                          Carried

 

 

19. Resolution to Exclude the Public

 

Committee Resolved FPCO/2022/00010

Part C

That Jeremy Smith, Paul Munro and Toni Rowell of  Christchurch City Holdings Ltd remain after the public have been excluded for Item 21, and that Jeremy Smith also remains for Item 22 of the public excluded agenda, as they have knowledge that is relevant to those items and will assist the Council. 

AND

That at 11.30am the resolution to exclude the public set out on pages 485 and 486 of the agenda be adopted.

 

Councillor MacDonald/Councillor Scandrett                                                                                                   Carried

 

The open meeting resumed with Deputy Mayor Turner in the Chair for Items 16 and 17 at 12.02pm.

 

16. Venues Ōtautahi - Draft Letter of Expectations for 2022/23

 

Committee Resolved FPCO/2022/00011 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.         Approves the draft Letter of Expectations for Venues Ōtautahi for 2022/23.

Councillor Chen/Councillor Coker                                                                                                                     Carried

 

 

17. Civic Financial Services - Statement of Intent 2022

 

Committee Resolved FPCO/2022/00012 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.         Notes Civic Financial Services’ Statement of Intent for 2022;

2.         Requests that Council staff contact the Chief Executive of Civic Financial Services to seek an early timeslot in his schedule of in-person visits to shareholders in early 2022.

Deputy Mayor/Councillor Davidson                                                                                                                   Carried

 

Councillor McDonald took the Chair for Item 18 at 12.06pm.

 

18. Christchurch Foundation - Annual Report for year ended 30 June 2021 and Half Year Report for six months ended 31 December 2021

 

Committee Resolved FPCO/2022/00013Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.         Receives the Christchurch Foundation’s Annual Report 2020/21 and Half Year Report for the period 1 July to 31 December 2021.

Councillor Davidson/Councillor Mauger                                                                                                          Carried

 

Deputy Mayor Turner took the Chair for the resumption of Item 8 at 12.08pm.

 

8.   Parakiore - Accessibility Design Features

 

Committee Comment

1.         The Committee noted that the Accessibility Regulatory Working Group should hold a meeting to look at the accessibility features contained in the staff report.

2.         The Committee also advised that the Council should receive a briefing on Changing Places to help inform decisions making. 

 

Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1.         Receive the information in the Parakiore- Accessibility Design Features Report

 

 

Committee Resolved FPCO/2022/00014

Part C

That the Finance and Performance Committee:

1.      Receive the information in the Parakiore- Accessibility Design Features Report

2.      Refer the report to the Accessibility Regulatory Working Group for a workshop to which all Councillors will be invited.

3.      Request an urgent briefing to the full Council by Changing Places and Council staff to inform the decision to implement or not implement Changing Places at Parakiore.

Councillor Keown/Councillor MacDonald                                                                                                       Carried

 

 

 

 

 

 

 

 

 

Karakia Whakamutunga: Deputy Mayor Turner     

 

Meeting concluded at 12.10pm.

 

CONFIRMED THIS 24th DAY OF MARCH 2022

 

 

 

Deputy Mayor Andrew Turner

Chairperson


Finance and Performance Committee

24 March 2022

 

 

7.     Key Performance Results February 2022

Reference Te Tohutoro:

22/175113

Report of Te Pou Matua:

Peter Ryan, Head of Performance Management, peter.ryan@ccc.govt.nz

General Manager Pouwhakarae:

Lynn McClelland, Assistant Chief Executive
lynn.mcclelland@ccc.govt.nz

 

 

1.   Brief Summary

1.1       The purpose of this report is to track delivery of organisational performance priorities set out in the 2021-31 Long Term Plan, to target and within budget. The key organisational performance measures include:

·   Service delivery

·   Capital projects (planning and delivery)

·   Finance

1.2       Organisational performance forecasts for February 2022 are trending positively, showing month-on-month improvement for Level of Service and Watchlist project delivery, and both capital funding planning targets (FY2023 target has been met), while remaining stable for operational budget.

1.3       Overall three performance targets are either met or on track to be met for year-end. The other targets require small improvement to meet target.

1.4       This is a positive forecast, given the restrictions of response levels and COVID-19 impacting level of service delivery. There are also supply chain delays and construction price escalations impacting Council’s capital programme delivery. These effects are also being felt nationwide.

1.5       The (relatively) minor variations from previous years in these results shows that Council’s mitigation strategies to deal with Covid have been successful to date.

 

Organisational Performance Summary

Target

Forecast Actual / change

Forecast Result against Target

Service Delivery

     Deliver Community Levels of Service to target

85%

83.6% p

O

 

Capital projects (planning and delivery)

  Delivery complete milestones (whole of life)

     Deliver Watchlist projects

90%

90.9% p

P

     Deliver Non-Watchlist projects

85%

77.6% q

O

  Capital programme planning

 

 

 

     FY2023 funding budgets allocated by 1st March 2022

90%

91.3% p

P

     FY2024/2025 funding budgets drawn down by 1st May 2022

90%

61.1% p

O

 

Finance

      All operational budgets actively managed within approved budget

100%

100% =

P

     Deliver overall capital programme to approved budget

=/-10%

-13.9% q

O

 

2.   Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1.         Receives the information provided in the Key Performance Results for February 2022.

 

3.   Service delivery

ELT Goal: Deliver 85% Community Levels of Service to target

·                                               2021/22

# LOS

R/A/G

·                                              O 83.6%

·                                               p             1.0%

213

11/24/178

R - Red

Will fail to meet target

A - Amber

Intervention is required to meet target

G - Green

Will meet target

 

3.1       Community levels of service (LOS) year-end forecast as at February is 83.6% against the performance target of 85%. This is an improvement of 1.0% from January 2022.

3.2       This February forecast is 3.6% above the result from this time last year and higher than last year's final result (81.6%).

3.3       The restrictions of COVID-19 response levels (currently Phase 3, Red traffic light) continue to impact the number of people using the Council’s facilities, services and programmes, such as Art Gallery, Akaroa Museum, Libraries, Recreation and Community Centres. Some facility closures are anticipated.

3.4       Impacts are also noticeable in some regulatory services, such as increases in consent volumes leading to delays in consent processing. Extensive effort around recruitment and contracting has been underway for some time to provide the additional capacity needed. Improvements are beginning to be seen.

3.5       A number of LOS exceptions are cautiously forecast as they await results from this year’s resident satisfaction surveys.

3.6       For further details regarding LOS exceptions, refer to managers’ comments in Attachment A.

3.7       The scatter diagram below is an overview of the performance of the top ten activities as at February 2022.

3.7.1   The vertical y-axis shows service delivery (LOS) performance. 

3.7.2   The horizontal x-axis shows budget over/underspend.

3.8       Since the beginning of this financial year, the majority of activities continue to cluster around the ‘sweet spot’ – delivering their LOS to target and on budget.

3.9       Similar to January reporting, the activities requiring focus are Transport, Water Supply, Recreation, Sports, Community Arts and Events, and Solid Waste and Resource Recovery.

3.10    As mentioned above, a number of LOS exceptions are cautiously forecast as they await results from this year’s resident satisfaction surveys.

4.   Capital projects, planning and delivery

ELT Goal: Deliver 90% watchlist capital projects to ‘delivery complete’ milestones

ELT Goal: Deliver 85% non-watchlist capital projects to ‘delivery complete’ milestones

4.1       Watchlist project performance is forecast at 90.9% (target 90%), ahead of the organisations performance target for the first time since January 2021. This is an improvement of 6.1% from the previous month, with two additional projects now reporting on track (within tolerances).

4.2       Forecast Non-Watchlist project delivery has declined since January, to 77.6% (target 85%) from a two-year forecast high (81.8%). Overall the programme is delivering more strongly to plan than the previous year.

4.3       Supply chain delays and construction price escalation remain a concern nationwide and are risks to the delivery of the Council’s capital programme.

4.4      
For further information and underlying detail, refer to the detailed Capital Project Performance Report February 2022.

·                                                Watchlist

·                                              Capital projects

·                                               2021/22

Red/Amber/Green/Black

P 90.9%

p    6.1%

2/1/30/0

 

 

Non-Watchlist

Capital projects

·                                               2021/22

Red/Amber/Green/Black

O 77.6%

q   -4.2%

87/12/546/59

 

Red

>61 days delay

 

Amber

31-60 days delay

 

Green

<30 days delay

 

Black

No baseline date set

 

Forward view of capital delivery performance for the LTP

4.5       This is an overview of capital delivery in the last three years against plan, plus capital delivery planned for the first three years of the LTP 2021-31.

4.6       Figures are updated for 2022/23 and 2023/24, per the adopted Draft Annual Plan (24 February 2022).

4.7       There has been stability of delivery year-on-year for projects CCC is responsible for delivering (green line – total spend), ranging consistently between $390m to $409m spend per annum over the last 4 years.

4.8       For this year (year 1 of the LTP 2021) the total programme amount set for CCC to deliver was $489m (excluding spend for projects CCC is not responsible for – Parakiore and Te Kaha/ CMUA). The February 2022 forecast for capital delivery is $393m, which equates to 80.4% delivery. This spend also excludes Parakiore and Te Kaha, but includes spend for externally funded projects.

4.9       Under the Draft Annual Plan 2022/23, future year’s CCC delivery programmes for 2022/23 and 2023/24 are set at $498m and $565m (blue line - excluding Te Kaha). There remain clear risks around deliverability for these future years, given the consistency of spend these last 4 years (approx. $400m pa), plus the challenges of supply of materials and cost escalation that will impact both 2021/22 and 2022/23, and potentially the years beyond.

4.10    For more detail refer to the Corporate Finance Report February 2022.

 

Total Planned Delivery:

The amount finalised in each Long-term Plan or Annual Plan.

Total Planned Delivery:

Total CCC Planned Delivery, excluding Parakiore and Te Kaha/CMUA, excl External.

 

*The gap between the grey line and black line consists of the actual/planned spend for Te Kaha/CMUA and Parakiore.

Total Actual/Forecast:

The amount that was spent, or is forecast to be spent, in a given year.

Total Funded:

Consists of Planned CCC Delivery plus any subsequent capital injection from the Crown, such as for Water Reform, CRAF and Shovel Ready projects.

 

ELT Goal: Ensure capital planning for FY23 funding programme budgets allocated,
90% by 1 March 2022.

ELT Goal: Ensure capital planning for F24 & FY25 funding programme budgets drawn down, 90% by 1 May 2022.

4.11    Capital planning targets are intended to monitor the draw-down of capital funding programme budgets in years 2, and 3 and 4 of 2021-31 LTP. This helps the business plan and prepare for future capital project delivery, in order to effectively implement the LTP.

4.12    91.3% of FY 2022/23 funding programme budgets have been allocated to date, meeting the target for 90% projects initiated to be allocated by 1st March 2022. Citizens and Community has achieved (95.8%) and makes up 30% of capital programme budgets for FY 22/23, Transport and Waste Management (93.8%), Three Waters (93.7%), Facilities, Property and Planning (100%) and Digital (36.9%).

4.13    61.1% of FY2024/FY2025 funding programme budgets has been drawn down in CPMS (Capital Programme Management System). The target is for 90% funding programme budgets drawn down by 1st May 2022.  Citizens and Community has achieved 72.5% draw down, and makes up 15% of Council total. All other delivery groups will need to increase their efforts to meet the target. Technical Services & Design (100%), Three Waters (58.1%), Transport & Waste Management (69.7%), Digital (6.3%), Facilities, Property & Planning (49.5%)

5.   Finance

ELT Goal: Demonstrate value for money and actively manage our operational budgets.

ELT Goal: Deliver overall capital programme to approved budget, =/ -10%.

5.1       There is currently an $11.4 million (post COVID impact) surplus forecast for the year. This is a small deterioration of $0.3 million from that reported in December.

5.2       Capital programme is forecast to underspend, outside the organisations performance target of between 0% to -10%.

5.3       More detail is available in the Corporate Finance Report.

 

 

Attachments Ngā Tāpirihanga

No.

Title

Page

a

LOS Exceptions Commentary February 2022

24

 

 

Additional background information may be noted in the below table:

Document Name

Location / File Link

Nil

Nil

 

 

 

Confirmation of Statutory Compliance Te Whakatūturutanga ā-Ture

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 Ngā Kaiwaitohu

Authors

Boyd Kedzlie - Senior Business Analyst

Johan Jacobs - Senior Business Analyst

Approved By

Peter Ryan - Head of Performance Management

Lynn McClelland - Assistant Chief Executive Strategic Policy and Performance

  


Finance and Performance Committee

24 March 2022

 













Finance and Performance Committee

24 March 2022

 

 

8.     Corporate Finance Report - Feburary 2022

Reference Te Tohutoro:

22/146528

Report of Te Pou Matua:

Bruce Moher, Head of Finance, bruce.moher@ccc.govt.nz

General Manager Pouwhakarae:

Leah Scales, Acting General Manager Resources/CFO, leah.scales@ccc.govt.nz

 

 

1.   Brief Summary

1.1       The purpose of this report is for the Finance and Performance Committee to receive a brief update on financial performance to 28 February 2022, including the current full year forecast, and to receive information relating to the Council’s treasury and debtors risks, and insurance notifications.

1.2       Financial results to date and forecast are positive.

1.3       All treasury risk positions are within policy limits.

1.4       There were decreases in rates and general debt during the month.

1.5       There were no material insurance issues for the month.

 

2.   Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1.         Receives the information in the Corporate Finance Report for February 2022.

3.   Key Financial Statistics

A 1% increase in interest rates would cause a 3% rates increase, which is why we hold a lot of our debt at fixed rates  

What causes a 1% rates increase?
 
$5.9m of opex or $95m of capex

         

    

Historic and projected gross debt level

 

4.   Financial Performance Overview

4.1       Financial information reported to Council covers two key areas.

4.1.1   Operational (expenditure and revenue) covers the day to day spend on staffing, operations and maintenance, and revenues.

4.1.2   Capital covers the capital programme spend and funding relating to it.

4.1.3   Operational revenue exceeds expenditure as it includes rates revenue for capital renewals and debt repayment. This revenue is referred to below as ‘Funds not available for Opex’ and removed from the Operational result.

4.2       There is currently an $11.4 million (post COVID impact – ref. 4.4) surplus forecast for the year. This is a small deterioration of $0.3 million from that reported in December, driven by;

4.2.1   The forecast COVID impact has increased $1.9 million to $6.5 million, due to extending traffic light restrictions and additional security assumptions out until the end of the financial year (previously end of March),

4.2.2   Le Bons Bay Landfill Remediation project forecast cost increase ($0.7 million), due to additional material found, and,

4.2.3   Emergency road repairs following the December rain event ($0.3 million).

4.2.4   Partially offsetting these impacts are higher than budgeted Transwaste dividends received in February ($1.4 million),

4.2.5   Further improvement in net interest costs ($0.5 million) and rates revenue ($0.3 million),

4.2.6   Building/Resource consenting ($0.3 million) due to higher volumes, and,

 

4.3       The above graph shows the change in forecast surplus over time and the impact Covid is having. The intention remains to utilise $7.25 million of the forecast surplus to avoid current year planned COVID borrowing.


 


Year to Date Results

Forecast Year End Results

After Carry Forwards

$m

Actual

Plan

Var

 

Forecast

Plan

Var

 

Carry Fwd

Var

 

Operational

 

 

 

 

 

 

 

 

 

Revenues

(574.5)

(561.2)

13.3

 

(807.9)

(791.1)

16.8

 

-

16.8

 

Expenditure

397.5

408.2

10.7

 

619.7

619.6

(0.1)

 

4.8

(4.9)

 

Funds not available for Opex

127.4

127.7

0.3

 

172.0

171.5

(0.5)

 

-

(0.5)

 

Operating Surplus

(49.6)

(25.3)

24.3

(16.2)

-

16.2

4.8

11.4

 

 

 

 

 

 

 

 

 

 

Capital

 

 

 

 

 

 

 

 

 

Core/External Funded Programme

201.0

265.8

64.8

 

423.9

488.9

65.0

 

65.0

-

 

Te Kaha/Parakiore 

43.5

59.7

16.2

 

94.3

119.4

25.1

 

25.1

-

 

Less unidentified Carry Forwards

-

-

-

 

(31.1)

-

31.1

 

31.1

-

 

Capital Programme Expenditure

244.5

325.5

81.0

487.1

608.3

121.2

121.2

-

Revenues and Funding

(187.8)

(213.8)

(26.0)

 

(304.8)

(303.3)

1.5

 

(9.7)

11.2

 

Borrowing required

56.7

111.7

55.0

182.3

305.0

122.7

111.5

11.2

 

4.4       Covid-19 Restrictions Impact - based on restrictions experienced to date and the assumption that orange/red traffic light restrictions will continue until the end of the financial year, the following are the material expected forecast impacts:

Activity

Reason

($m)

Recreation & Sport

Lower revenues, additional security costs

2.7

Libraries

Lower fees/charges, facility hire, term rental relief, additional security

1.1

Parks

Term rental relief, lower shop sales

0.2

Art Gallery

Lower shop sales, donations & facility hire

0.2

Citizen & Customer Service

NZ post revenues decrease

0.1

Community Development

Community Facilities hire revenues

0.1

Transport

Parking/Enforcement Revenue decrease, term rental relief

1.9

Corporate/Internal services

Petrol Tax / masks / rapid tests / temp staff

0.2

Total

 

6.5

Favourable forecasts across other areas of the organisation cover the above impact.

The Omicron outbreak could affect the financials significantly should further restrictions be required, public behaviour changes, or closure of facilities is required due to staff shortages. 

 

Operating Surplus                  Full year forecast               $11.4m (after carry forwards)

                                                                                  Budget                                                                 $0m

 

Key drivers:  Recycling processing fee savings and prior year rebate ($6.4 million), higher Building/Resource Consent volumes ($4.2 million – net of resourcing costs), favourable net interest/dividend revenues ($3.9 million), higher rates revenue ($2.6 million), personnel savings ($2 million – excl. Consenting/capitalised IT), Burwood Landfill continued operations ($1.5 million), and insurance savings ($1.1 million).

Partially offset by COVID-19 restrictions impacts ($6.5 million), higher refuse disposal fees ($1.4 million), Procurement savings not likely to be achieved ($0.7 million), additional remediation costs for Le Bons Bay Landfill ($0.7 million), costs associated with the new Resource Management Act (Housing Bill) ($0.5 million). 

Operating Revenue

Year to date $574.5mñ            Full year forecast          $807.9mñ

Budget                           $561.2m                       Budget                                                    $791.1m

 

Key drivers: Higher Resource and Building consent revenues, Burwood Landfill, Recycling processing fee rebate, increased dividends, interest and rates revenues.

Operating Expenditure

Year to date $397.5m ò          Full year forecast              $624.5mñ (after carry forwards)

Budget                           $408.2m                       Budget                                                     $619.6m

Key drivers: YTD - recycling processing fee savings, timing of grants, water reform spend timing, Parks/Rec & Sport expenditure timing, and lower insurance costs.

 

Forecast after carry forwards is higher than budget due to additional costs required to service the high volumes of Resource/Building consents (offset by higher revenue), Burwood Landfill costs (offset by higher revenue), refuse disposal costs, higher debt servicing costs (offset by higher interest revenues), and additional Le Bons Bay Landfill remediation costs.

 

Capital Expenditure

Year to date $244.5m  Forecast delivery       $487.1m      Budget $608.3m

Budget                            $325.5m    Forecast carry forwards                  $121.2m     20% of gross budget

                                                                    

Comment:  Project managers have identified $90.1 million relating to specific projects forecast to be carried forward. The forecast includes an additional $31.1 million of expected carry forwards yet to be specifically identified (forecast based on actuals to date and historical trend analysis). The Draft 2022/23 Annual Plan includes an assumed total $50 million carryforward. This will be revisited for the Final.

Category

Forecast
($m)

Budget ($m)

Under Delivery ($m)

Core Programme

365.7

415.5

49.8

External Funded Programme

58.2

73.4

15.2

Unidentified carry forwards

(31.1)

-

31.1

Subtotal Council delivered

392.8

488.9

96.1

Te Kaha/Parakiore

94.3

119.4

25.1

Finance forecast projection

487.1

608.3

121.2

Capital Revenues and Funding

Year to date $187.8m  Full year forecast       $314.5m ñ (after carry forwards)   

Budget                            $213.8m    Budget                                                  $303.3m

 

Comment: YTD – slower Crown revenues for contributions towards Te Kaha, Shovel Ready, and Water Reform projects due to slower project spends.

 

Forecast – largely due to additional utilisation of development contributions due to higher contributions received ($6.4 million), higher water connection fees ($1.8 million), and NZTA subsidies ($1.4 million).

5.   Treasury

Borrowing, Advances to Related Parties, and Bank Deposits

5.1       Council’s borrowing and treasury-related Advances are shown below:

5.2       There has been no change since the Dec-21 quarter-end Report.

5.3       Rates-funded borrowing is expected to remain unchanged this financial year – net outflows from operations and capital investment will be funded by existing cash holdings.

Policy Compliance

5.1       All Treasury risks are within Policy limits:

Risk Area

Compliance

Liquidity Risk

Yes

Funding Risk

Yes

Interest Rate Risk

Yes

Counterparty Credit Risk

Yes

 

Funding & Interest Rates

5.2       Council’s projected funding needs per financial year are shown in the chart below, split between the maturity of existing gross borrowing (green) and expected new borrowing requirements (grey).  There is a significant concentration risk in the 2024 year, which is subject to on-going management.

5.3       Council’s interest rate risk is managed, to reduce the volatility of interest costs from year to year.  Most existing debt has been fixed for at least the next three years, which will limit the impact of recent market interest rate increases on Council’s future borrowing costs.  The table below will be reviewed again prior to the final Annual Plan, but significant changes are not expected.

6.   Rates and General Debt

6.1       Rates debt decreased $1.9 million this month and Non-rates debt decreased $10.1 million as shown in the table below.

$m

December

Current

Change

Comment

Rates Debt

24.2

22.3

(1.9)

Per below

Overdue rates for current year

18.7

19.2

0.5

Instalment 3 for one area became due during February

Arrears from previous years

5.5

3.1

(2.4)

Mortgagees paying formal demands

General Debt

19.0

8.9

(10.1)

$11.2m Crown contribution for Te Kaha paid in January

(less than 30 days)

17.5

7.8

(9.7)

As above

(between 30 – 90 days)

1.1

0.6

(0.5)

-

(greater than 90 days)

0.4

0.5

0.1

-

 

6.2       As rates instalments are invoiced quarterly, rates debt that is 90+ days old is at least one instalment in arrears. Looking at rates debt in the 90+ day category is useful because it prevents the debt trends from being obscured by the short-term volatility of properties that miss one payment but catch it up with the next instalment.

Christchurch is split into three areas for rates instalments. To spread the load of enquiries and counter payments, the due dates for the areas are off-set by two weeks. For each quarterly instalment, the three due dates are the 15th and the end of the second month and the 15th of the third month. This tends to translate into a three month cycle for rates arrears: generally lower in the first two months of the quarter and higher in the third month.

As the quantum of rates tends to increase over the years, to see any trend in rates debt, it is useful to look at rates debt as a proportion of the annual rates strike.

The graph below shows the 90+ days old rates debt each month as a percentage of the annual rates strike that year, with a three month moving average to smooth the quarterly cycle.

Over the past six years, the 90+ days rates debt has remained relatively stable, fluctuating around 1.4% (±0.2%) of the annual rates strike. There was an extended rise in late 2020, due at least in part to payment extensions for instalments where the ratepayer was experiencing financial hardship due to the COVID-19 pandemic. This has trended back down during 2021 and 2022 to a current lowest point, giving comfort that rate arrears are currently well in hand.

 

7.   Insurance Claims

The table below outlines the number of events that have been notified by Council against its insurance policies as well as claims against Council from third parties during January and February 2022.

Policy

Claims / Notifications

Estimated Cost

Above excess

Below excess

Claims by Council

Motor Vehicle

0

1

$TBC

 

Material damage

0

0

$0

Claims against Council

PI / PL

0

0

$0

 

7.1       CWTP fire claim - damage assessments of the trickling filters and reconfiguration of the treatment plant process continued during this period. Once this work is completed the quantum of the claim will become clearer. Updates on this claim will be reported to the Insurance Subcommittee, in accordance with the updated Terms of Reference for this Subcommittee.

 

 

Attachments Ngā Tāpirihanga

There are no attachments for this report.

 

Additional background information may be noted in the below table:

Document Name

Location / File Link

Nil

Nil

 

 

 

Confirmation of Statutory Compliance Te Whakatūturutanga ā-Ture

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 Ngā Kaiwaitohu

Authors

Ryan McLachlan - Reporting Accountant

Andrew Jefferies - Manager Rates Revenue

Steve Ballard - Group Treasurer

Brett Hales - Manager Transactions

Adrian Seagar - Senior Insurance Specialist

Martin Zelas - Team Leader Rates

Approved By

Bruce Moher - Acting Head of Finance

Leah Scales - Acting General Manager Resources/Chief Financial Officer

  


Finance and Performance Committee

24 March 2022

 

 

9.     Capital Project Performance Report - February 2022

Reference / Te Tohutoro:

22/95426

Report of / Te Pou Matua:

Richard Wesley, Head of Programme Management Office, richard.wesley@ccc.govt.nz

General Manager / Pouwhakarae:

Lynn McClelland, Assistant Chief Executive Strategic Policy and Performance, lynn.mcclelland@ccc.govt.nz

 

 

1.   Brief Summary

1.1       The purpose of this report is for the Finance and Performance Committee to be informed of Capital Performance for period ending 28 February 2022 and the outlook for coming months.

1.2       At the end of February the forecast for capital delivery has dropped from the 90% figure reported at the end of December, and now sits at 86% for the whole capital programme. While the core programme continues to forecast a year end result of 89%, the effects of the current wave of Covid effects sweeping the country will significantly affect this forecast position.

 

 

CCC Core

External Funded

CMUA /

Parakiore

TOTAL

Budget:

$415.4m

$73.4m

$119.4m

$608.2m

Forecast to 30 June 2022:

$371.0m

$58.2m

$94.3m

$523.5m

Spend to date:

$164.8m

$27.4m

$40.9m

$233.1m

FY22 Forecast Delivery (as of Feb 2022)

89%

79%

79%

86%

 

1.3       As flagged for 6-8 months we are experiencing Covid impacts across Council and contractors, and this will continue to impact our capital programme for some months. We reported in September 2021 that we expected the overall impact to last around 24 months.

1.4       The impacts are variable across programmes and contractors. The situation is dynamic and quite volatile with a large number of unknowns.  It is becoming clear that we will not be delivering capex to target and we will not be able to make this up in the short term.  This is frustrating but a reality we are addressing systematically. We are undertaking reviews with service delivery managers and will continue to update councillors with the best and most up-to-date information.

1.5       The effects of Covid will be seen with current work underway being delayed due to staff being required to self-isolate. International procurement of materials has been an identified issue and is not expected to resolve in the short term. In addition to the actual impact of Covid, the opening up of borders may also impact the flow of staffing for Council and contractors.

1.6       The situation in Ukraine and higher oil prices also contribute to higher material costs for items such as bitumen for road re sealing works. These new effects are compounding the current Covid issues.

1.7       We are supporting our staff to manage through the current Covid outbreak and self-isolating requirements. We are working closely with contractors to understand and mitigate impacts; identifying short and medium term impacts; prioritising maintenance to keep the city running; while identifying and planning our recovery pathway.

1.8       The spend to date graph below shows the percentage capital spend per month in comparison to previous years. It is clear that a strong finish to the year as per the original planned expenditure profile was required to meet targets. The ability to achieve the forecast delivery expected is now not possible.  However, we will continue to apply effort and practical solutions wherever possible to achieve the best possible result and will provide revised forecasts to Council reflecting the best information at the time available.

 

1.9       For further details on the remaining capital programme see the deliverability commentary in the attached Capital Project Performance Report.

1.10    Work has also been progressing this month in the Programme Management Office (PMO) to streamline and simplify the capital reporting provided to the committee so as to ensure that the key messages are clearly communicated and not duplicated. The reports currently provided on a monthly basis to the committee have grown significantly over the last two years in detail and complexity, and a review is timely in ensuring the best possible use of time and resources. We would hope to build improvements into reporting starting at the next meeting in April.

 

2.   Officer Recommendations / Ngā Tūtohu

That the Finance and Performance Committee:

1.         Receive the information in the Capital Project Performance Report, Three Waters Delivery Enhancements, Watchlist Report, External Funded Report, Major Cycleways Report and the Project Delivery Complete FY22, to 28 February 2022.

 

 

 

Attachments / Ngā Tāpirihanga

No.

Title

Page

a

2022-02-28 Capital Project Performance Report - February 2022

50

b

2022-02 Three Waters - Delivery Enhancements - February 2022 ELT

75

c

2022-02 Capex Watchlist Report - February 2022

78

d

2022-02 External Funded Report - February 2022

80

e

2022-02 Major Cycleways Report - February 2022

86

f

2022-02 Project Delivery Completes - FY22 COW

88

 

 

Additional background information may be noted in the below table:

Document Name

Location / File Link

Nil

Nil

 

 

 

Confirmation of Statutory Compliance / Te Whakatūturutanga ā-Ture

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 / Ngā Kaiwaitohu

Author

Richard Wesley - Head of Programme Management Office

Approved By

Mary Richardson - General Manager Citizens & Community

Jane Davis - General Manager Infrastructure, Planning & Regulatory Services

Lynn McClelland - Assistant Chief Executive Strategic Policy and Performance

  


Finance and Performance Committee

24 March 2022

 


























Finance and Performance Committee

24 March 2022

 




Finance and Performance Committee

24 March 2022

 



Finance and Performance Committee

24 March 2022

 







Finance and Performance Committee

24 March 2022

 



Finance and Performance Committee

24 March 2022

 


Finance and Performance Committee

24 March 2022

 

 

10.   Close Out Report - Victoria Street (An Accessible City)

Reference Te Tohutoro:

21/1823023

Report of Te Pou Matua:

Adrian Thein, Project Manager, Adrian Thein@ccc.govt.nz
Richard Wesley, Principal Advisor PMO,

General Manager Pouwhakarae:

Jane Davis, GM Infrastructure, Planning & Regulatory Services

 

 

1.   Brief Summary

1.1       The purpose of this report is to present the close out report for the Victoria Street (An Accessible City) capital project as requested by the committee. 

1.2       The report has been written to provide an overview of the performance of the capital project now that it is complete.

1.3       The objectives and benefits of the project are summarised in the report by this table.


 

1.4       The lessons learnt from this project include the following main points.

2.   Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1.         Receive the information in the Victoria Street Project Close Out Report

 

 

 

 

Attachments Ngā Tāpirihanga

No.

Title

Page

a

AAC Victoria Street - Closeout Report

92

 

 

Additional background information may be noted in the below table:

Document Name

Location / File Link

Nil

Nil

 

 

 

Confirmation of Statutory Compliance Te Whakatūturutanga ā-Ture

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 Ngā Kaiwaitohu

Author

Richard Wesley - Head of Programme Management Office

Approved By

Lynette Ellis - Head of Transport & Waste Management

Jane Davis - General Manager Infrastructure, Planning & Regulatory Services

  


Finance and Performance Committee

24 March 2022

 

















Finance and Performance Committee

24 March 2022

 

 

11.   Electricity Procurement

Reference Te Tohutoro:

22/239709

Report of Te Pou Matua:

Steven Nichols, Energy Analyst, steven.nichols@ccc.govt.nz
Paul Bakker, Procurement & Contracts Category Lead, paul.bakker@ccc.govt.nz
Bruce Rendall, Head of Facilities, Property and Planning, bruce.rendall@ccc.govt.nz

General Manager Pouwhakarae:

Leah Scales, Acting General Manager Resources/Chief Financial Officer, leah.scales@ccc.govt.nz

 

 

1.   Purpose of the Report Te Pūtake Pūrongo

1.1       The purpose of this report is to gain approval of the procurement plan for the Council’s electricity supply.  This report is staff generated in response to the Council’s current electricity supply contracts end date, which is 30 September 2022. Tranche 19 of MBIE’s All of Government electricity procurement will commence on 25 March 2022.

1.2       The decisions in this report low significance in relation to the Christchurch City Council’s Significance and Engagement Policy.  The level of significance was determined by evaluation according to each significance criteria relating to impacts on the community and Council function. 

 

 

2.   Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1.         Approve the procurement plan for electricity supply to engage with MBIE’s All of Government procurement process to evaluate proposals from electricity retailers for 18 and 36 month terms.

 

3.   Reason for Report Recommendations Ngā Take mō te Whakatau

3.1       External advice and modelling has recommended that the Council continue to procure electricity via MBIE’s All of Government process in conjunction with behind the meter solar photovoltaic (PV) power purchase agreements.  This approach provides the most feasible way of meeting all of Council’s objectives at the current time.

3.2       Procurement of behind the meter solar PV PPAs will be addressed in a separate procurement plan, which can be approved under delegation.

3.3       Council officers have identified a product that may better meet the Council’s objectives, however, based on external advice and some market sounding, it appears that only one company offers this product.   This product involves power purchase agreements with future independent renewable power producers (e.g. potential generators at CIAL’s Kōwhai Park), and financial mechanism to ensure supply and reduce pricing volatility.

3.4       Pursuing renewable power purchase agreements has a number of broader impacts for Christchurch which include:

3.4.1   Investment in new renewable electricity generation assets, which shows climate leadership.

3.4.2   Investment in local employment, as the generation assets would be located in Canterbury.

3.5       To ensure that we can demonstrate value for money, officers are exploring ways to allow this product to be included in a procurement process along those from other retailers on the All of Government panel. 

 

4.   Alternative Options Considered Ētahi atu Kōwhiringa

4.1       Alternative options considered were:

4.1.1   A “financial” approach, which would involve the Council purchasing electricity on the wholesale spot market whilst securing contract for difference hedges to mitigate spot pricing volatility. The advantages of this option included the historical price advantage of hedge contracts over fixed price contracts (usually 7% on average), however in recent years, this price advantage has been significantly reduced. This approach is more complex and would require both internal and external resource and expertise to make regular decisions regarding which hedge to purchase and when. External consultants would provide advice on hedging purchases and conduct RFPs for hedge contracts on behalf of Council.

4.1.2   A “financial” approach with renewable power purchase agreements.  The advantages of this option include the ability to purchase and accommodate renewable power purchase agreements alongside hedge contracts. However, the disadvantages included significant monthly volatility in pricing, particularly when larger renewable power purchase agreements are added. The success of this approach would require the power purchase agreement have a very competitive price in order to achieve better value for money over fixed price contracts.

4.1.3   A hybrid option where Council enters into an agreement with a retailer which allows a customer to purchase electricity on mostly fixed prices which a predetermined level of spot pricing (e.g. 30%). Council could then enter into renewable power purchase agreements with generators and nominate the level of spot pricing to match the output of the renewable generator. The advantages of this option include the ability to mitigate the exposure to spot pricing. However, the disadvantage of this option are that the level of spot pricing can only be set once per month which would not be frequent enough to change with the output of the renewable generator to avoid significant volatility in monthly electricity costs.

5.   Detail Te Whakamahuki

5.1       Council is a significant consumer of electricity in Christchurch with an approximate annual total consumption of over 83 GWh (Gigawatt hours) across street lighting, time-of-use and non-half-hourly metering types. This usage profile has shifted from 69GWh in 2017, to 100GWh in 2019, and back to the current figures.  The reasons for the decrease are related to permanent changes associated with the street light LED roll out and temporary change associated with Covid 19 shutdowns.

5.2       Council has over 1300 separate electricity connections/accounts (installation control points – ICPs) to the electricity network.

5.3       Council’s total electrical expenditure for the term of the next contract is estimated to be in the range of $15 to $17 million pa, requiring Finance and Performance Committee approval of the procurement plan.   The range is based on both variable volumes, and forecast unit prices.  If Council continued to use the current FPVV model under the All of Government contract, we anticipate a significant unit price rise, based on the future’s market.

5.4       Council has in recent years purchased its electricity through All of Government procurement.  The 2017 procurement process initiated public discussion about climate leadership and greenhouse gas emission intensity, while the increased rates obtained in 2019 started internal discussions about price volatility.

5.5       The current contracts expire in September 2022.

5.1       Staff have considered different purchasing options for electricity beyond 1 October 2022. These different options aim to achieve the objectives of:

5.1.1   security of supply,

5.1.2   reducing price volatility,

5.1.3   lowering greenhouse gas emission intensity,

5.1.4   showing climate leadership, and

5.1.5   improve value for money.

5.2       A consideration is also providing certainty to investors wishing to develop utility scale renewable energy generation in Christchurch.   Such investment is likely to result in construction and operational jobs.

5.3       Options considered have included the current All of Government approach (fixed pricing variable volumes), behind the meter (BTM) solar PV, corporate power purchase agreements (PPAs) and a financial approach, involving spot prices and hedge contracts.

5.4       Staff, based on analysis of the options and external advice, recommends pursuing behind the meter solar PV on Council rooftops whilst continuing to participate in MBIE’s All of Government procurement process for electricity in the short term.  

5.5       This approach meets the security of supply and lowering greenhouse gas emission intensity objectives and partially meets the climate leadership objective.  It does not reduce price volatility objective and the value for money is uncertain at this stage.

5.6       Other mixes of options have been considered but are not considered feasible when considering the current regulatory environment, state of the market and Council capacity.

5.7       There are emerging products that could meet all of Council’s needs.   The secondary recommendation from the external consultant was for Council to investigate a new product that  would allow Council to enter into power purchase agreements with renewable generators (and take advantage of the improved value these may provide) whilst purchasing the remainder of electricity not covered by the renewable power purchase agreements in such a way that mitigates pricing volatility. 

5.8       Council must consider the views and preferences of its community when making decisions. 

5.8.1   Specific community feedback tells us that electricity related greenhouse gas emissions are an important matter to some members of the community.   For some in this group there is a justification in paying a premium if this resulted in a net reduction in emissions.

5.8.2   For others it is likely that they perceive that electricity is an essential commodity for which Council should strive to pay the lowest possible price.

5.8.3   Overall it is probable that the community wishes Council to try to minimise both emission and costs of the electricity it uses.

5.9       The decision affects the following wards/Community Board areas:

5.9.1   All wards/Community Board areas.

6.   Policy Framework Implications Ngā Hīraunga ā- Kaupapa here

Strategic Alignment Te Rautaki Tīaroaro

6.1       Electricity is essential for the operation of Council facilities for the community.

6.2       Council has set itself a target of becoming net carbon neutral by 2030. Electricity represents a significant component of the Council’s own greenhouse gas emissions, through grid emission factors. This has been taken into consideration during the procurement process as one of the strategic objectives.

6.3       This report supports the Council's Long Term Plan (2021 - 2031):

6.3.1   Activity: Facilities, Property and Planning

·     Level of Service: 13.4.29.2 We provide advice and projects that reduce the energy used in Council facilities - At least 3.3% reduction year on year greenhouse gas emissions, excluding methane (Based on Greenhouse Gas Emissions Target for Christchurch, Option 1)

Policy Consistency Te Whai Kaupapa here

6.4       The decision is consistent with Council’s Plans and Policies.

Impact on Mana Whenua Ngā Whai Take Mana Whenua

6.5       The decision does not involve a significant decision in relation to ancestral land or a body of water or other elements of intrinsic value, therefore this decision does specifically impact Mana Whenua, their culture and traditions.

6.6       Electricity supply does not affect land or a body of water in this regard.

Climate Change Impact Considerations Ngā Whai Whakaaro mā te Āhuarangi

6.7       Electricity related greenhouse gas emissions represent a significant portion of Council’s overall emissions profile. Staff have considered this as one of the stated strategic objectives for electricity procurement. This objective is to reduce the emissions factor from the electricity that council purchases and to show climate leadership. Emissions factor is calculated as the mass of carbon dioxide equivalent emitted whenever a unit (kWh) of electricity is generated, either from the grid as an average or from a specific generation source (e.g. solar PV).

6.8       Currently electricity supplying Council facilities is sourced from the grid and, for the purposes of Council’s greenhouse gas inventory, the associated greenhouse gas emissions are calculated using the grid average emissions factor published by the Ministry for the Environment. Despite the fact that the majority of electricity supply in the South Island is from hydro and wind generation, the only accepted emissions factor used for greenhouse gas inventories is the national grid average emissions factor which includes the fossil fuelled generators in the North Island.

6.9       In order to reduce the emissions intensity for electricity purchases, electricity purchases either need to be offset using renewable energy certificates or carbon credits, or directly sourced from generation that has a lower emissions factor than the grid average emissions factor.

6.10    Electricity sourced from behind the meter solar PV generation would achieve this through sourcing a portion of the electricity from a solar array attached to a rooftop (for example) that would otherwise purchase from the grid.

6.11    While behind the meter solar PV will reduce Council’s greenhouse gas emissions, there is a practical limit to the amount of solar PV panels that can be deployed on Council facilities. Staff have therefore also considered power purchase agreements with renewable energy generators. While the electricity generated from these sources is considered low carbon, the electricity delivered to council would still use the grid average emissions factor. However, this can potentially be mitigated through the purchase of renewable energy certificates, however these need to be certified for the purposed of calculating Council’s greenhouse gas inventory.

6.12    There is also consideration that, while a renewable PPA may not affect the emissions intensity of the electricity supplied to Council facilities, it would contribute to increasing the availability of low carbon electricity for the wider Christchurch community, as this power would be available in the electrical grid, incrementally reducing the grid average electricity factor by avoiding greenhouse gas emissions that would otherwise be emitted by generators elsewhere.

 

Accessibility Considerations Ngā Whai Whakaaro mā te Hunga Hauā

6.13    Not applicable as the procurement process to purchase electricity does not affect accessibility.

7.   Resource Implications Ngā Hīraunga Rauemi

Capex/Opex Ngā Utu Whakahaere

7.1       Cost to implement – Council will spend between $20,000 and $50,000 on specialist advice to help assess price submissions and provide other market advice.

7.2       Maintenance/Ongoing costs – Council’s electricity budget for FY2023 is $17,678,865.

7.3       Funding Source – Electricity is funded from a range of operational budgets at the business unit level.

Other He mea anō

7.4       NA

8.   Legal Implications Ngā Hīraunga ā-Ture

Statutory power to undertake proposals in the report Te Manatū Whakahaere Kaupapa

8.1       Council has the authority to purchase electricity.

Other Legal Implications Ētahi atu Hīraunga-ā-Ture

8.2       There is no legal context, issue or implication relevant to this decision.

9.   Risk Management Implications Ngā Hīraunga Tūraru

9.1       The main risks of the proposed decisions are mainly financial. Due to market conditions at this time, there is likely to be an increase in electricity prices, irrespective of the chosen strategy. 

 

Attachments Ngā Tāpirihanga

No.

Title

Page

a

Electricity Procurement Plan 2022

115

 

 

Additional background information may be noted in the below table:

Document Name

Location / File Link

Nil

Nil

 

 

 

Confirmation of Statutory Compliance Te Whakatūturutanga ā-Ture

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 Ngā Kaiwaitohu

Authors

Steven Nichols - Energy Analyst

Paul Bakker - Procurement & Contracts Category Lead

Approved By

Bruce Rendall - Head of Facilities, Property & Planning

Leah Scales - Acting General Manager Resources/Chief Financial Officer

  


Finance and Performance Committee

24 March 2022

 















Finance and Performance Committee

24 March 2022

 

 

12.   Council-controlled organisations - Half year reports for the six months ending 31 December 2021

Reference / Te Tohutoro:

20/1612057

Report of / Te Pou Matua:

Linda Gibb, Performance Advisor, External Reporting and Governance, Resources (linda.gibb@ccc.govt.nz).

General Manager / Pouwhakarae:

Leah Scales, Acting General Manager/CFO, Resources (leah.scales@ccc.govt.nz).

 

 

1.   Brief Summary

1.1       The purpose of this report is to provide the half year reports for the six months ending 31 December 2021 for the following Council-controlled organisations (CCOs):

·    Civic Building Ltd (Attachment A)

·    Local Government Funding Agency (LGFA) (Attachments B and C); and

·    Rod Donald Banks Peninsula Trust (Attachment D).

·    Christchurch City Holdings Ltd (Attachments E & F)

·    Christchurch International Airport Ltd (Attachments G & H)

1.2       The report has been written following receipt of the reports from the CCOs within two months after the end of the first half of the financial year, as required by section 66 of the Local Government Act 2002 (LGA).

1.3       Section 66(4) of the LGA requires each report to include the information required to be included by the CCO’s Statement of Intent (SOI).  The reports meet this requirement.

1.4       The Christchurch City Holdings Ltd (CCHL) and Christchurch International Airport Ltd (CIAL) Interim Reports for the six months ending 31 December 2021 were released to the financial markets on 28 February 2022 in accordance with the NZX Listing Rules.  The Quarter 2 year to date results for both companies were reported to the Finance and Performance Committee meeting on the 24th February.   A short summary of key points is provide in this report.

 

2.   Officer Recommendations / Ngā Tūtohu

That the Finance and Performance Committee:

1.         Receives the half year reports for the six months ending 31 December 2021 for Civic Building Ltd, Local Government Funding Agency and Rod Donald Banks Peninsula Trust; and

2.         Receive the Interim Reports for Christchurch City Holdings Ltd and Christchurch International Airport Ltd for the six months ending 31 December 2021.

3.   Analysis

3.1       The half year performance results for each of the CCOs follows.  The half year performance for the period 1 July-31 December 2021 is compared against SOI targets and against the same period in the prior year.   

Civic Building Ltd (Attachment A)

3.2       The company’s income is generated from the Council’s finance lease payments for occupancy of Civic Building, less the costs of servicing the loan advanced by the Council for purchasing the building.


 

 

Actual

$000

SOI target

$000

Last year

$000

Revenue

Expenses

Net profit before tax

2,218

2,256

(38)

2,186

2,133

53

2,248

2,269

(21)

Total assets

56,493

59,064

56,543

3.3       Against SOI targets, net profit before tax is lower by $91,000, mostly due to increased costs of $123,000 from higher interest costs on the loan to the Council, higher property rates and more repairs and maintenance required in the half year (which will be recovered from the Council in a future period).  These increases were offset by increases in interest revenue from the lease paid by the Council for occupancy and one-off insurance proceeds.  The variance between the current half year and the same period last year is minor.

3.4       Non-financial performance targets have been met.  In particular the Council’s Facilities’ Management Team considers that Civic Building is operating in a manner consistent with a Green star 6 facility.  An independent assessment of the building in line with the New Zealand Green Building Council was completed during the period and work is being undertaken to implement the recommendations.

3.5       Work is continuing on the development of appropriate performance measures in line with the sustainability goals for the company and the Resource Efficiency and Greenhouse Gas Emissions (REGGE) reporting framework.

Local Government Funding Agency (Attachments B and C)

3.6       The LGFA is owned by the New Zealand Government (11.1%) and 30 councils (88.9%).  Christchurch City Council, and eight other councils all have equal shareholdings of 8.3% each and the remaining 14.2% is held by 21 other local authorities.  Attachment B is the LGFA’s half year accounts and Attachment C the Chief Executive’s letter explaining performance.

3.7       Its financial performance targets and half-year outcomes are as follows:

Target

Actual

$m

Target

$m

Last year

$m

Net operating income

9.7

9.4

9.8

Issuance, on-lending and operating expenses

3.8

-

3.9

Net profit

5.9

-

5.9

 

3.8       The following table shows the change in LGFA lending:

Target

Actual

$m

Target

$m

Last year

$m

Total lending to participating councils

13,513

13,200

12,066

3.9       Total lending to participating councils is slightly ahead of target and in excess of last year’s lending by $1.45 billion.  The increased borrowing reflects councils’ refinancing debt maturing in April 2022 and financing infrastructure projects to soften the economic impact of COVID-19.  Rising interest rates have also contributed to the increase in revenue over target.

3.10    The LGFA report includes an update on its increasing focus on sustainability (page 5).  This approach includes having appointed a Head of Sustainability, achievement of CarbonZero certification from Toitū Envirocare and launch of ‘Green Social and Sustainable’ lending to councils. 

3.11    LGFA advises that there have been no breaches of its Treasury Policy or any regulatory or legislative requirements including health and safety.

3.12    There are two non-financial targets that LGFA advises it is not on target to meet by year end.  Its target “to achieve 85% market share of all council borrowing in New Zealand” cannot be achieved while Auckland Council continues to hold a large amount of private debt.  The LGFA  has not been able to meet its target to “review each participating local authority’s financial position, headroom under LGFA policies and arrange to meet each at least annually” due to COVID-19 travel difficulties. 

3.13    The Chief Executive of the LGFA will attend the April Finance and Performance meeting to give a presentation to the Council on the LGFA’s activities. 

 

Rod Donald Banks Peninsula Trust (Attachment D)

3.14    The Rod Donald Banks Peninsula Trust supports sustainable management, conservation and recreation on Banks Peninsula.  The Trust took possession of Te Ahu Pātiki, 500 hectares of land including the two highest peaks in Christchurch on 1 July after a public crowd funding in conjunction with the Christchurch Foundation and The Press.  Its major activity over the first half of the year has been setting up a park working to protect biodiversity with a conservation covenant, public access with easements, and to create a new charitable trust to own and manage the Park long term in conjunction with its partners Te Hapū o Ngati Wheke and Orton Bradly Park. The Trust expects to donate the land and any remaining donations to this new charitable trust by the end of the financial year or early in the following year.

 

 

Actual

$000

SOI target

$000

Last year

$000

Revenue

Expenses

Operating surplus/(deficit)

111

91

19

201

97

104

234

76

158

Trust Fund Balance

1,524

1,767

2,210

3.15    Against target, the operating surplus is lower by $85,000, largely as a result of lower revenue of $90,000.  The SOI target is half of the full year target, but the revenue does not generally fall so neatly.  The variance is expected to correct by year end with more donations committed from third parties for Te Ahu Pātiki due when the land is ready for transfer.

3.16    Against the prior year, the operating surplus is lower by $139,000 reflecting a reduction in revenue of $123,000 and lower expenditure of $41,000.  Revenue impacts were lower for Te Ahu Pātiki funding by $110,000 as most of the fundraising was done in the 2020/21 financial year and lower interest income by $15,000 as the Trust’s capital has reduced.  Expenditure was higher on the Trust’s management contract by $16,000 due to the significantly higher volume of work required relating to the Te Ahu Pātiki project.

3.17    Strategic grants and project expenditure are lower by $57,000 of which $37,000 related to the Te Ahu Pātiki project and a one-off $20,000 was a grant to the Geopark Trust in 2020.

3.18    Non-financial performance targets have all either been met, are in progress or will be undertaken in the second half of this financial year.

3.19    The Trust has advised that its Chair, Ms Maureen McCloy has stepped down as Chair of the Trust following her leadership role in the acquisition of Te Ahu Pātiki.  She will remain a trustee.  The Trust has appointed trustees Mr Brian Suggate and Ms Jenn Chowaniec as co-Chairs of the Trust.  The long-serving Trust manager, Ms Suky Thompson is also retiring shortly.

 

Christchurch City Holdings Ltd and Christchurch International Airport Ltd

3.20    CCHL and CIAL are each required to make interim financial disclosures to the NZX as the issuers of listed debt securities.  The performance of both companies for the half year was reported to the Finance and Performance Committee’s meeting on 24 February.  

3.21    The Interim Report to 31 December 2021 for CCHL is at Attachment E, and announcement to the NZX explaining the group’s results is at Attachment F.

3.22    The following is the headline information for the CCHL Group’s performance:

·    revenue $522.7 million (Dec 2020: $496.9 million);

·    net profit $36.3 million (Dec 2020: $26.3 million);

·    total assets $4.9 billion (Dec 2020: $4.6 billion).

3.23    At the request of Council, CCHL have reintroduced CCHL Parent numbers into the interim report.  The CCHL Parent recorded a net profit after tax (NPAT) for the six months ended 31 December 2021 of $29.1 million, compared with $40.8 million in the equivalent period last year.  Total operating revenue for the Parent for the six month period was $41.4 million compared to $53.6 million for the same period last year.

3.24    The lower revenue and profit was largely due to the $17 million special dividend received from RBL Property in the prior comparative period, partially offset by a $6 million dividend received from Enable in the current reporting period. Note the Interim Parent profit is impacted directly on the timing of dividends received by subsidiaries.

3.25    Parent assets increased to $3.8 billion from $3.4 billion, mainly due to:

·    revaluation of the investment in CIAL and Enable at last year end, and

·    $85 million on-lending to LPC.

Parent net assets have increased to $2.5 billion from $2.2 billion, a lower increase than for total assets due to the issue of a $150 million sustainability bond.

3.26    CIAL’s Interim Report to 31 December 2021 is at Attachment G, and announcement to the NZX explaining the half year results is at Attachment H.  Key information is that CIAL returned a small tax paid profit of $41,000, compared to $1.2 million in the half year to December 2020.  Total passenger numbers were down 11% against the December 2020 half year, and 56% against pre-COVID-19 levels.  Property revenue has held up well, up 5.6% on the same period last year despite CIAL’s continuing levels of support to many tenants.

 

 

 

 

 

 

 

 

 

 

 

Attachments / Ngā Tāpirihanga

No.

Title

Page

a

Civic Building Ltd - Interim Report to 31 December 2021

134

b

Local Government Funding Agency - Interim Report to 31 December 2021

144

c

Local Government Funding Agency letter from Chief Executive with Interim Report to December 2021

176

d

Rod Donald Banks Peninsula Trust - Interim Report to 31 December 2021

179

e

Christchurch City Holdings Ltd Interim Report for the six months ended 31 December 2021

196

f

Christchurch City Holdings Ltd Notice to the NZX of interim results for the six months ended 31 December 2021

223

g

Christchurch International Airport Ltd - Interim Report to 31 December 2021

226

h

Christchurch International Airport Ltd Notice to the NZX of interim results for the six months ended 31 December 2021

245

 

 

In addition to the attached documents, the following background information is available:

Document Name

Location / File Link

Nil

Nil

 

 

 

Confirmation of Statutory Compliance / Te Whakatūturutanga ā-Ture

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 / Ngā Kaiwaitohu

Author

Linda Gibb - Performance Monitoring Advisor CCO

Approved By

Leah Scales - Acting General Manager Resources/Chief Financial Officer

  


Finance and Performance Committee

24 March 2022

 











Finance and Performance Committee

24 March 2022

 

































Finance and Performance Committee

24 March 2022

 




Finance and Performance Committee

24 March 2022

 


















Finance and Performance Committee

24 March 2022

 




























Finance and Performance Committee

24 March 2022

 




Finance and Performance Committee

24 March 2022

 




















Finance and Performance Committee

24 March 2022

 





Finance and Performance Committee

24 March 2022

 

 

13.   ChristchurchNZ Holdings Ltd - Interim Report for the six months to 31 December 2021

Reference Te Tohutoro:

22/192587

Report of Te Pou Matua:

Linda Gibb, Performance Advisor, Resources Group (linda.gibb@ccc.govt.nz).

General Manager Pouwhakarae:

Leah Scales, Acting General Manager/CFO, Resources Group (leah.scales@ccc.govt.nz).

 

 

1.   Brief Summary

1.1       The purpose of this report is to present ChristchurchNZ Holdings Ltd’s (CNZHL’s) performance report for Quarter 2 2021/22 which includes year to date (1 July 2021 to 31 December 2021) performance against its Statement of Intent (SOI) performance targets, and the same period in the prior year. 

1.2       The report has been written following receiving CNZHL’s report on 25 February 2022 (Attachment A).

1.3       CNZHL has complied with section 66 of the Local Government Act 2002 which requires a Council-controlled organisation (CCO) to report on the organisation’s operations to its shareholders within two months after the end of the first half of the financial year, and for the report to include the information required to be included by the CCO’s SOI. 

1.4       The Chair of the CNZHL board and senior CNZ staff will provide a presentation to the Committee on the half year performance as well as provide an update on Antarctic Office activities. 

1.5       Over the past two years of COVID-19 restrictions, CNZ has not been able to fully deliver its programme of major events, or its attraction, promotion and marketing activities for Christchurch.  Council and Central Government funding has been reserved (based on contractual commitments) by CNZ to deliver events and campaigns when restrictions are permanently lifted. 

1.6       Councillors may wish to probe CNZ staff’s expectations of how its events, marketing and promotions’ programmes will roll out over the remainder of the 2022 calendar year now that there is greater certainty about the timing of the lifting of border restrictions for both New Zealand citizens and foreign travellers. 

1.7       Council staff will engage with CNZ to understand the value for money proposition for the programme identified above and deployed over the next two years.

2.   Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1.         Receives ChristchurchNZ Holdings Ltd’s Quarter 2 Performance Report and half year performance for the period 1 July 2021 to 31 December 2021.

 


 

3.   Details

3.1       The following table presents CNZHL’s half year performance:

 

Actual

$000

Budget

$000

Prior year

$000

CCC funding

7,951

7,951

5,943

3rd party funding

3,221

3,715

2,616

Expenditure

(9,672)

(13,017)

(8,440)

Total surplus/(loss)

1,554

(1,351)

119

3.2       Against SOI targets, third party revenue is lower by almost $0.5 million which is a timing issue, and is expected to correct by year end.  It reflects revenue from central government that while received, cannot be recognised in accounting terms until the conditions for its release are satisfied, or it is returned. 

3.3       Expenditure is lower by $3.3 million.  The majority of the underspend is a direct result of ongoing COVID-19 restrictions and in particular the mass cancellation or delay of events over the half year.  Expenditure on destination and attraction, marketing and promotion activities was lower than expected by $2.5 million as a result of COVID-19 disruptions.  In addition, delays in CNZ’s urban development function becoming fully staffed following decisions taken in December 2021 has led to lower expenditure by $0.5 million.  The urban development team is now fully staffed but is limited in its work until CNZ has agreed a pipeline of urban development work with the Council (due to be workshopped with councillors in early April).

3.4       Council and central government funding received for events and activities that could not proceed in the current period remains tagged to the delivery of these activities in future periods. 

3.5       At the end of December CNZHL’s cash balance was artificially high as it reflected $9 million of central government funding retained on the balance sheet pending delivery of the associated contracts. 

3.6       Against last year, Council funding is higher by $2 million which is a reflection of approximately half the annual funding increase that CNZ received in the LTP 2021-31.  Third party revenue is higher by $0.6 million from the ongoing receipt of central government economic stimulus packages, some of which is held by CNZ for distribution to other Canterbury councils when they have met the required terms and conditions. 

3.7       Expenditure is higher by $1.2 million which also reflects the increased activity funded through the LTP (including the urban development function of circa $0.5 million) and increased activity associated with the delivery of the central government contracts. 

3.8       Performance targets - several non-financial performance targets are identified as being ‘off track’ and will not recover by 30 June 2022.  These relate to targets that COVID-19 restrictions have impeded, such as contribution to job creation and visitor spend from major events, completion of a major events seeding round and target investment value of $0.5 million secured into destination promotion and product development. 

3.9       Several other targets are also ‘off track’ but only marginally, and are expected to catch up by the end of the year. 

 

Attachments Ngā Tāpirihanga

No.

Title

Page

a

ChristchurchNZ Holdings Ltd - Interim Report for the half year ending 31 December 2021

252

 

 

Additional background information may be noted in the below table:

Document Name

Location / File Link

nIL

nIL

 

 

 

Confirmation of Statutory Compliance Te Whakatūturutanga ā-Ture

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 Ngā Kaiwaitohu

Author

Linda Gibb - Performance Monitoring Advisor CCO

Approved By

Len Van Hout - Manager External Reporting & Governance

Bruce Moher - Acting Head of Finance

Leah Scales - Acting General Manager Resources/Chief Financial Officer

  


Finance and Performance Committee

24 March 2022

 

















Finance and Performance Committee

24 March 2022

 

 

14.   Venues Ōtautahi - Interim Report for the six months to 31 December 2021

Reference Te Tohutoro:

22/192633

Report of Te Pou Matua:

Linda Gibb, Performance Advisor, Resources Group (linda.gibb@ccc.govt.nz).

General Manager Pouwhakarae:

Leah Scales, Acting General Manager/CFO, Resources Group (leah.scales@ccc.govt.nz).

 

 

1.   Brief Summary

1.1       The purpose of this report is to present Venues Ōtautahi’s (VŌ’s) performance report for Quarter 2, 2021/22.  The report also includes VŌ’s financial statements for the six months 1 July 2021 to 31 December 2021 and the two reports compare the current period’s financial performance against Statement of Intent (SOI) performance targets and the same period in the prior year. 

1.2       The report has been written following receiving VŌ’s report and unaudited financial statements on 24 February.  A cover letter from the Chief Executive (CE) is at Attachment A, the performance report at Attachment B and the unaudited financial statements are at Attachment C.  The letter from VŌ’s CE provides a comprehensive update on the COVID-19 challenges VŌ is continuing to face, and the measures the company is taking to minimise the detriment from the large scale loss of events. 

1.3       VŌ has complied with section 66 of the Local Government Act 2002 which requires a Council-controlled organisation (CCO) to report on the organisation’s operations to its shareholders within two months after the end of the first half of each financial year.

COVID-19

1.4       When its SOI targets were set in March/April 2021, there was little official guidance as to when COVID-19 restrictions might be lifted.  The restrictions of closed borders, minimal MIQ availability and numbers of people allowed to gather posed severe challenges to the VŌ business.  Its SOI targets assumed an easing in COVID-19 restrictions during 2021/22 (note that the Omicron variant was not first identified globally until September 2021) but noted the high degree of uncertainty underpinning this assumption.

1.5       During the half year to 31 December 2021, the two week lockdown in August, followed by ongoing restrictions on travel from the Auckland area in particular through to the end of 2021 led to a number of cancellations, postponements or restrictions on the number of attendees for the events that could proceed across the venues.

1.6       In the VŌ’s Chief Executive’s letter (Attachment A) is an account of the immediate and likely ongoing impacts of COVID-19 restrictions on VŌ’s event business.  It also includes a number of initiatives that VŌ has undertaken, and is continuing to undertake to minimise losses. 

1.7       Inevitably, VŌ is facing some serious challenges going into the latter half of the 2021/22 financial year.  It has re-forecast its expected year end outturn based on restrictions in place in February carrying through to April and a lag through to the end of the financial year leading to an expected operating deficit (EBITDA) of circa $1 million (compared with its SOI target of a surplus of $0.4 million.


 

Performance

1.8       The following table draws together VŌ’s operating performance (the performance report is at Attachment B) and its half year accounting outturn (financial statements are at Attachment C).  The major items excluded from the operating performance line are depreciation on facilities (Town Hall and Arena) of $4.6 million and debt servicing costs of $0.5 million.  The analysis that follows focuses on operating performance as the other costs are uncontrollable for VŌ.

 

Actual

$000

Budget

$000

Variance

$000

Prior year

$000

Variance

$000

Operating performance – EBITDA

801

346

+455

(383)

1,184

Other revenue and uncontrollable fixed costs

(4,647)

No SOI target

-

(4,694)

-

Deficit before tax

(3,846)

No SOI target

-

(4,265)

+419

 

 

1.9       Until the lockdown in quarter 2, VŌ had been making good progress on rebuilding an events schedule, only to see it reduce significantly when the August 2021 COVID-19 restrictions were put in place. 

1.10    Against SOI target, VŌ has returned a higher EBITDA result by $0.5 million.  Revenue was down by 17% over budget, and costs by 23% (excluding fixed costs).  Although VŌ held a lower number of events than expected in the first six months (53 versus a target of 113), the loss in revenue has been partially offset by the Government’s Covid-19 wage subsidy and resurgence support payments along with the company’s response and recovery plan to reduce costs across the business.

1.11    The severe impact of COVID-19 on VŌ’s business makes it difficult to compare outturn with the same period in the previous year. 

1.12    VŌ’s SOI for the current year aimed at a full year EBITDA outturn, based on a recovery of its events’ business of $0.4 million (before overheads).  As a result of the ongoing COVID-19 restrictions, VŌ has now revised its EBITDA forecast to a deficit of circa $1 million. 

1.13    Non-financial performance - many of VŌ’s non-financial performance targets are unable to be met due to COVID-19 restrictions. 

Community discount

1.14    For the half year, 21 community groups were provided with access to VŌ’s venues at the community rate, the value of which was circa $57,000 (measured as forgone revenue to VŌ).  These outcomes were more than 50% of the full year SOI targets of respectively 36 community groups and value circa $50,000.

1.15    VŌ notes that it is seeing year on year increases in the number of groups accessing the venues at the community rate.

1.16    Groups securing the community rate expect that VŌ will not breach their privacy and therefore VŌ is not able to release information that would identify them.

 

 

 

2.   Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1.         Notes Venues Ōtautahi ‘s Quarter 2, 2021/22 performance report and financial statements for the period 1 July 2021 to 31 December 2021.

 

 

 

Attachments Ngā Tāpirihanga

No.

Title

Page

a

Venues Ōtautahi - Letter from Chief Executive February 2022

272

b

Venues Ōtautahi - Quarter 2 Performance Report and half year performance 1 July - 31 December 2021

275

c

Venues Ōtautahi - Financial Statements for the six months to 31 December 2021

285

 

 

Additional background information may be noted in the below table:

Document Name

Location / File Link

Nil

Nil

 

 

 

Confirmation of Statutory Compliance Te Whakatūturutanga ā-Ture

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 Ngā Kaiwaitohu

Author

Linda Gibb - Performance Monitoring Advisor CCO

Approved By

Bruce Moher - Acting Head of Finance

Leah Scales - Acting General Manager Resources/Chief Financial Officer

  


Finance and Performance Committee

24 March 2022

 




Finance and Performance Committee

24 March 2022

 











Finance and Performance Committee

24 March 2022

 















Finance and Performance Committee

24 March 2022

 

 

15.   Transwaste Canterbury Ltd - Annual Report 2020/21

Reference Te Tohutoro:

22/62164

Report of Te Pou Matua:

Linda Gibb, Performance Advisor, Resources Group (linda.gibb@ccc.govt.nz).

General Manager Pouwhakarae:

Leah Scales, Acting General Manager/CFO, Resources Group (leah.scales@ccc.govt.nz).

 

 

1.   Brief Summary

1.1       The purpose of this report is to present Transwaste Canterbury Ltd’s Annual Report for the year ended 30 June 2021.  The report has been written as a result of receiving the audited Annual Report on 17 January 2021.

2.   Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1.         Notes Transwaste Canterbury Ltd’s Annual Report for the year ended 30 June 2021.

 

2.1       Section 67 of the Local Government Act 2002 (LGA) requires the board of a Council-controlled organisation (CCO) to deliver an annual report to shareholders within three months after the end of the financial year.  The Annual Report was submitted well after this time due to resource constraints at AuditNZ as a result of border closures which has led to delayed audits. 

2.2       The following table presents Transwaste’s financial outturn for the 2020/21 year compared with its Statement of Intent (SOI) targets and the prior year’s performance:

 

Actual

$000

SOI target

$000

Last year

$000

Revenue

Expenses

Earnings before interest and tax

54,280

35,035

19,245

43,647

29,766

13,881

47,374

28,934

18,440

Net profit after tax

13,773

Not forecast

13,527

Cash generated from operations

19,000

Not forecast

19,397

Total assets

72,487

Not forecast

86,942

Total dividends

·      CCC 38.9% share

22,100

8,597

21,997

8,556

16,900

6,574

 

2.3       Against SOI targets, operating performance was better than expected largely due to the unexpectedly strong growth of the New Zealand economy following the COVID-19 restrictions of 2020.  Waste to the Kate Valley landfill was 27% higher than expected, contributing to increased earnings before interest and tax (EBIT) of $5.3 million (+36%) and net profit after tax (NPAT) of $13.8 million.

2.4       Against the prior year 2019/20, EBIT, NPAT and cash generated have only minor variances - EBIT is $0.8 million higher (4.4%) and NPAT is $0.2 million higher (1.8%).  The key difference in performance is with respect to the larger dividend distributed to shareholders of $5.2 million reflecting a progress payout of capital with around $5 million still held back for addressing any residual issues potentially associated with operations and closure of the Burwood Resource Recovery Park (BRRP). 

The BRRP project which dealt with post-earthquake demolition and construction waste has now been completed and the land was handed back to the Council in May 2021.   

2.5       Balance sheet – roughly one third of cash generated over the year of $19 million was reinvested in the business ($6.8 million) and two thirds was distributed to shareholders ($12 million).  A further $10 million was paid to shareholders, drawn from cash held on the Balance Sheet, making a total distribution of $22 million.  Total assets reduced accordingly by the $10 million release of cash and by a further $4.5 million due to an increase in the provision for restoration costs of the landfills at the end of their economic lives (in about 24 years’ time) of $3.5 million.

Non-financial performance

2.6       There are two performance targets that were not met by 30 June 2021.  Both were advised to the shareholding councils at the half-year report, as follows:

·    there was an incident of minor damage to a third party vehicle by a contractor which has led to the performance target ‘no traffic incidents where Transwaste’s main contractor Canterbury Waste Services’ drivers are at fault’ not being met; and

·    employees of Canterbury Materials Recovery Facility, the Transwaste subsidiary company that was providing waste management services at the BRRP were unable to access the targeted 10 hours per FTE annually of staff training.  This was due to the run down and cessation of activities at the BRRP.

2.7       There are a number of other targets that are identified as being ‘on track’ or ‘in progress’.  These targets are long range and relate to the three year period of the current SOI.  They are mostly targets for sustainable environment performance, and within that category measuring and reducing greenhouse gas emissions.

 

 

 

Attachments Ngā Tāpirihanga

No.

Title

Page

a

Transwaste Canterbury Ltd Annual Report 2020/21

302

 

 

Additional background information may be noted in the below table:

Document Name

Location / File Link

Nil

Nil

 

 

 

Confirmation of Statutory Compliance Te Whakatūturutanga ā-Ture

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 Ngā Kaiwaitohu

Author

Linda Gibb - Performance Monitoring Advisor CCO

Approved By

Len Van Hout - Manager External Reporting & Governance

Leah Scales - Acting General Manager Resources/Chief Financial Officer

  


Finance and Performance Committee

24 March 2022

 










































































Finance and Performance Committee

24 March 2022

 

 

16.   Riccarton Bush Trust - Performance Report for the six months to 31 December 2021 and draft Statement of Intent for 2022/23

Reference Te Tohutoro:

22/246129

Report of Te Pou Matua:

Linda Gibb, Performance Advisor, Resources Group (linda.gibb@ccc.govt.nz).

General Manager Pouwhakarae:

Leah Scales, Acting General Manager/CFO, Resources Group (leah.scales@ccc.govt.nz).

 

 

1.   Purpose of the Report Te Pūtake Pūrongo

1.1       The purpose of this report is to report Riccarton Bush Trust’s (the Trust’s) performance report for the half year ending 31 December 2021 and to seek Council’s comments if any on the Trust’s draft Statement of Intent (SOI) for 2022/23.

1.2       This report has been written following receipt of the documents from the Trust before the statutory dates set out in the Local Government Act 2002 (LGA).  The Trust has requested to present its draft SOI to the Committee at the meeting.  Attendees will be the Chair of the Trust, Mr Bob Shearing QSO, Trustee Mr Bob Lineham and Trust Manager, Ms Shona Willis. 

1.3       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 estimating the extent to which the decisions may impact the community.

 

2.   Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1.         Receives Riccarton Bush Trust’s half year report for the period 1 July to 31 December 2021;

2.         Approves an increase in the capital grant for Riccarton Bush Trust of $53,000 in 2022/23, $71,000 in 2023/24 and a reduction of $8,000 in 2024/25 for the bush enhancement project;

3.         Notes Riccarton Bush Trust’s draft Statement of Intent for 2022/23 and comments to the trustees that the Council would like them to consider including in the final Statement of Intent for 2022/23 the following:

·    identification of the contribution the Riccarton Bush Trust makes to the Council’s community outcomes through the delivery of its activities and services;

·    a commitment to meeting the goal of becoming net carbon neutral by 2030, and to work with Council staff to identify what is required to enable this outcome; and

·    a commitment to provide information in its statutory reporting about numbers of participants across the variety of Riccarton Bush and House offerings and providing comparisons over time as that information is compiled.

 

3.   Reason for Report Recommendations Ngā Take mō te Whakatau

3.1       To assist the Trust to meet the purpose of the SOI in section 64(2) of the LGA (described later in this report).

 

4.   Alternative Options Considered Ētahi atu Kōwhiringa

4.1       The alternative options are to make no comment on the draft SOI, which would lead to it being finalised as it has been presented in draft form.  This would be acceptable as the draft SOI is legally compliant.

5.   Detail Te Whakamahuki

Background

5.1       The Trust is a charitable trust, incorporated under an Act of Parliament in 1914.  The Riccarton Bush Amendment Act 2012 provides that the Trust must provide a financial plan to the Council annually for review and approval.  The Trust administers 7.8 hectares of native bush and Riccarton (historic) House. 

5.2       Total operating income and costs are around $0.6 million per annum, of which roughly half is from a Council grant and the remainder is a mixture of income from the on-site café (Local), the Saturday morning market, tours, third party grants, bequests and donations.  Around half of the Trust’s total expenditure is employee salaries and benefits.  The Trust pays its staff the living wage.

5.3       The Council also provides a capital grant to the Trust which, as a rule funds around 50% of its capital works, with the other 50% coming from third parties.  In recent times the Trust has upgraded the external public toilets, replaced carpet in the House, acquired antique furniture and installed sun-filters in the House.  

5.4       The capital value of the Riccarton Bush and House is around $14.5 million.

5.5       The following table shows the changes in the Trust’s financial outcomes over the past few years (excluding non-cash items such as depreciation):

 

2018/19

Actual

$000

2019/20

Actual

$000

2020/21

Actual

$000

Council funding

334

361

460

Other funding sources

193

239

166

Operating expenditure

(537)

(545)

(562)

Capital grant from Council

60

89

72

5.6       Council funding increased $100,000 in 2020/21 reflecting half the cost of re-painting Riccarton House, with the other half falling in 2021/22.  Other funding includes donations, tour commissions, commission from the on-site café Quarters at Riccarton House (previously Local), commission from the Saturday market, rent from the Rangers’ House, grants, bequests. 

5.7       The largest stable contribution from other sources is from the café.  It’s business has held up reasonably well in the face of COVID-19 restrictions due to increased domestic visitation.  The significant improvement in other funding in 2019/20 was from a one-off bequest of $33,000 and COVID-19 wage subsidy of $43,500. 

Performance for half year 1 July to 31 December 2021

5.1       During the half year, COVID-19 lockdown at level 4 was in place for two weeks which contributed to the reduction in visitor numbers.  The most significant detrimental impact on tour income was the border restrictions.  Tour numbers decreased by 28% in the half year and bush walk visitors were down 33%.  However, increased patronage from domestic visitors has allowed the concession income from the on-site café to be maintained. 

5.2       The following table sets out the Trust’s performance for the first six months of the 2021/22 financial year, and compares it with its SOI targets and with the same period in the prior year. 

 

Actual

$000

SOI target

$000

Last year

$000

Revenue (incl gain on asset sale)

Expenses

Operating surplus/(deficit)

328

422

(94)

327

327

0

317

371

 (54)

Total assets

14,865

Not forecast

14,962

5.3       The Trust’s SOI projections are to break even before third party grants, bequests, and depreciation expenses (because these items are either non-cash or uncontrollable). 

5.4       Against budget, the deficit is higher by $94,000, due to a depreciation charge of $142,000 which was not included in the SOI forecasts because it is non-cash, offset by lower expenditure of $50,000 reflecting a deferral of the house painting until the second half of the 2021/22 financial year. 

5.5       Against the prior year, the operating deficit was higher by $40,000 of which $59,000 was attributable to a higher depreciation charge due to the combined impacts of an appreciation in the value of Riccarton House of $1.8 million and a reduction in its useful life from 99 to 45 years.  Offsetting this was higher revenue of $10,000 from a capital grant and lower expenses by $11,000 largely as a result of a lag between the former bush ranger leaving and the new one starting as well as deferral of building maintenance. 

5.6       The Trust has started measuring a variety of visitor data including numbers of visitors overall and by activity (i.e. bush walk, house tour, weddings) and by user type (e.g. schools, university, community, film, health).  The data needs to be collected for another year to enable comparisons to be made year to year. 

5.7       For the first half of 2021/22, 702 visitors participated in tours of the bush and house, 2,092 attended weddings, community events, and picnics, 5,780 coffees were sold by the café, and in total 50,000 participations were recorded against all bush and house offerings (some visitors may have participated in more than one offering, therefore this is not the total number of visitors).  It should also be noted that the Trust’s goal is to optimise the benefits of visitors with the costs of maintaining and conserving the historic property.

5.8       Non-financial performance targets have all been either achieved for the year to date, or are on target to be achieved by year end.

Draft Statement of Intent

5.9       Section 64(2) of the LGA identifies the purpose of a SOI is to-

(a)  State publicly the activities and intentions of the CCO for the year and the objectives to which those activities will contribute; and

(b)  Provide an opportunity for shareholders to influence the direction of the organisation; and

(c)  Provide a basis for the accountability of the directors to their shareholders for the performance of the organisation.

5.10    The draft SOI meets the content requirements of the LGA, as set out in parts 2 and 4 of schedule 8.  Key content requirements are for SOIs to include:

·    the objectives of the group,

·    a statement of the board’s approach to governance, and

·    the nature and scope of activities to be undertaken, the non-financial performance targets and other measures by which performance is judged in relation to the objectives and forecast financial statements for the SOI’s three year time horizon.

5.11    The table below compares the Trust’s draft SOI financial forecasts with its prior year SOI’s final forecasts.

Revenue/Expenses

2022/23

$000

2023/24

$000

2024/25

$000

Current draft SOI

567

580

593

Last year’s final SOI

566

579

-

5.12    When the financial forecasts were developed for last year’s SOI the Trust had not anticipated ongoing COVID-19 restrictions that would continue to adversely impact its visitor income.  As the borders are expected to be open again, there has been no change in the Trust’s expected visitor income.  The operating grant sought from the Council is shown in the following table:

Operational revenue

2022/23

$000

2023/24

$000

2024/25

$000

CCC Operational Grant sought

365

373

382

Draft Annual Plan 2022/23 funding

365

375

379

Implied 3rd party funding

202

206

211

 

 

5.13    The operational levy for 2022/23 is consistent with the provisions made in the Council’s Draft 2022/23 Annual Plan. Minor variance  in outer year figures will be aligned in future Annual Plans. 


 

Capital funding increase

5.14    The following table shows the Trust’s projection of capital grants it is seeking from the Council:

Capital

2022/23

$000

2023/24

$000

2024/25

$000

Estimated capital expenditure

247

230

105

Draft Annual Plan 2022/23 funding

71

44

60

CCC capital grant sought

124

115

52

Increase/(decrease)

53

71

(8)

5.15    Over the past year the Trust has embarked on a project to upgrade the boardwalk and path system throughout the Bush.  It is old and poses a health and safety risk, as well as being inaccessible for many as a result of uneven surfaces due to wear and tear.  

5.16    In recent years the Trust has progressed projects to support the history of the House and the ecology and history of the bush.  The project provides an opportunity for it to put the focus on the cultural heritage of the House and Bush.  It will include measures to more formally recognise the Bush’s cultural history and the strong partnership between Ngāi Tūāhuriri and the Deans’ brothers. 

5.17    A recent review of the Bush by the Fire Department returned a recommendation that the fire protection system should be upgraded and an alert system installed, which is also part of the project. 

5.18    In total, the project is expected to cost $1 million over the next two years.  The Trust has partnered with the Christchurch Foundation to undertake a crowd funding campaign as well as being in discussions with the Rata Foundation and Lotteries Commission for funding.  The Trust is optimistic that its plans (which were funded by third party grants) will be well received and financially supported by the community.  In the event it does not raise sufficient external funding, the Trust would prioritise and deliver those of highest net benefit.

5.19    Other capital costs in each year are for regular capital items such as acquiring antiques, furnishings and fittings, landscaping and planting. 

Statement of Expectations

5.20    In December 2021, the Council issued a Statement of Expectations to all of its CCOs.  The following sets out the Trust’s responses to the expectations and how they have been incorporated into the Trust’s draft SOI (note that not all expectations are relevant to a SOI):

Expectation

Draft SOI response

Clarity of strategic objectives

This is governed by both the Riccarton Bush Act 1914 and amendments as well as the 2015 Management Plan.  It is recorded in the draft SOI at section 2 Vision, and supported by section 3 Value Statement and section 4 Management goals.

Linkages to Council’s strategic directions

These are not included in the draft SOI.  The Trust contributes to resilient communities (celebration of our identity through arts, culture, heritage, sport and recreation, strong sense of community and active participation in civic life), liveable city (21st century garden city we are proud to live in), healthy environment (unique landscapes and indigenous biodiversity are valued and stewardship exercised)

2030 target for net neutral carbon emissions

This is not explicitly addressed in the draft SOI.  While it is unlikely that the Trust’s activities are likely to give rise to major carbon emissions, the matter needs further consideration.  Staff will work with the Trust to identify next steps.

Commitment to raising 3rd party funding

The Trust’s reliance on, and work towards achieving 3rd party funding has been evident over the years.  The Trust will consider reinstating targets in 2023/24 when the tourism sector is likely to be more stable.

Health and safety

Reported at each board meeting and included in draft SOI (performance target 1).

Meaningful performance targets and how they contribute to the four well-beings

The Trust contributes to all of the well-beings in the community:  social (providing opportunities for the community to undertake leisure activities, meet with one another, benefit from offerings such as the Saturday market) economic (benefitting from commission from the on-site privately owned café), environmental (supporting and enhancing indigenous flora, fauna and ecology, and cultural wellbeing of the community (including protecting taonga and promoting the site’s heritage).

Living Wage

All staff have been paid the living wage since 2020.

10 year asset management plan

This has been confirmed by the Trust.

Diversity on the board

To be considered as part of succession planning.

Succession planning

The Trust is to report on this at the Council’s earlier request, the work for which is underway. 

High levels of engagement with mana whenua in areas of mutual interest

There is currently a vacancy on the Trust Board for manua whenua representation. The Trust is awaiting the results of a review of representation being carried out by Ngai Tūāhuriri.

No surprises policy

The relationship with the Council is open and transparent and the Trust currently operates on a no-surprises basis.  This is recorded in the draft SOI (refer section 6).

5.21    Clause 1(2), part 1 of schedule 8 provides that the board must consider any comments on the draft SOI that are made by the shareholders before 1 May in the year preceding the year to which the draft SOI relates.

5.22    In summary, the Trust’s draft SOI is legally compliant.  However, there are three comments on the Council may wish to formally make to the Trust for consideration and if agreed to include in the final SOI, as follows:

·    clarification of the linkages between its activities and services with the Council’s community outcomes;

·    a commitment to become net carbon neutral by 2030, and to work with Council staff to identify what is required to achieve this outcome; and

·    provision of information in its statutory reporting about numbers of participants across the variety of Riccarton Bush and House offerings and trend data when sufficient information is captured over time.

6.   Policy Framework Implications Ngā Hīraunga ā- Kaupapa here

Strategic Alignment Te Rautaki Tīaroaro

6.1       SOIs are strongly aligned to the Council’s strategic objectives and to its LTP 2021-31. 

Policy Consistency Te Whai Kaupapa here

6.2       The decisions in this report are consistent with the Council’s Plans and Policies – in particular promoting good governance.  This report has linkages to the Council's Long Term Plan (2021 - 2031).

Impact on Mana Whenua Ngā Whai Take Mana Whenua

6.3       The decision does not involve a significant decision in relation to ancestral land or a body of water or other elements of intrinsic value, therefore this decision does not specifically impact Mana Whenua, their culture and traditions.

6.4       The decision is administrative in nature.  However, capital projections are based on a project to enhance the Bush which includes more formally recognizing the Bush’s cultural history and the strong partnership between Ngāi Tūāhuriri and the Deans’ brothers. 

Climate Change Impact Considerations Ngā Whai Whakaaro mā te Āhuarangi

6.5       The decisions in this report do not themselves create any climate change impacts.  However, a request for the Trust to include climate change commitments in its SOI is in line with the Council’s climate change policies.

Accessibility Considerations Ngā Whai Whakaaro mā te Hunga Hauā

6.6       The upgrade of the boardwalk and path system throughout the Bush is, in part to make it safer and more accessible.

7.   Resource Implications Ngā Hīraunga Rauemi

Capex/Opex Ngā Utu Whakahaere

7.1       The operating costs provided for in the draft SOI are consistent with the LTP 2021-31 and Draft 2022/23 Annual Plan.

7.2       The capital costs are higher than in the LTP due to an oversight by Council staff.  They will be updated and aligned in the Final 2022/23 Annual Plan.

8.   Legal Implications Ngā Hīraunga ā-Ture

Statutory power to undertake proposals in the report Te Manatū Whakahaere Kaupapa

8.1       Section 64 of the LGA requires every CCO to prepare and adopt a SOI.  The process and SOI content requirements and obligations of CCOs and local authority shareholders is set out in schedule 8 of the LGA.

Other Legal Implications Ētahi atu Hīraunga-ā-Ture

8.2       The Riccarton Bush Amendment Act 2012 provides obligations for both the Trust and the Council.  The submissions from the Trust, and the proposed responses from the Council are consistent with the Act.

9.   Risk Management Implications Ngā Hīraunga Tūraru

9.1       Not relevant.

 

 

Attachments Ngā Tāpirihanga

No.

Title

Page

a

Riccarton Bush Trust - Half year report to 31 December 2021

383

b

Riccarton Bush Trust - Draft Statement of Intent 2022/23

393

 

 

Additional background information may be noted in the below table:

Document Name

Location / File Link

Nil

Nil

 

 

 

Confirmation of Statutory Compliance Te Whakatūturutanga ā-Ture

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 Ngā Kaiwaitohu

Author

Linda Gibb - Performance Monitoring Advisor CCO

Approved By

Bruce Moher - Acting Head of Finance

Leah Scales - Acting General Manager Resources/Chief Financial Officer

  


Finance and Performance Committee

24 March 2022

 











Finance and Performance Committee

24 March 2022

 







Finance and Performance Committee

24 March 2022

 

 

17.   Te Kaha Project - Elected Member Update

Reference Te Tohutoro:

22/205336

Report of Te Pou Matua:

David Kennedy, Chief Executive Te Kaha Project Delivery Limited,
david.kennedy@ccc.govt.nz

General Manager Pouwhakarae:

Barry Bragg, Chair Te Kaha Project Delivery Limited, barry.bragg@ngaitahu.iwi.nz

 

 

1.   Brief Summary

1.1       The purpose of this report is to update Elected Members on the progress of the Te Kaha Project Delivery Limited (previously known as Canterbury Multi-Use Arena).

2.   Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1.         Receive the information in the Te Kaha Project Elected Members Update Report.

 

 

Confirmation of Statutory Compliance / Te Whakatūturutanga ā-Ture

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 Ngā Kaiwaitohu

Author

David Kennedy - Chief Executive Te Kaha Project Delivery Limited

Approved By

Barry Bragg - Chair Te Kaha Project Delivery Limited

 

 

Attachments Ngā Tāpirihanga

No.

Title

Page

a

Te Kaha Elected Member Update (February 2022) for March Meeting 2022

400

 

 


Finance and Performance Committee

24 March 2022

 

 


Finance and Performance Committee

24 March 2022

 

 

18.   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

24 March 2022

 

 

 

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

19.

Public Excluded Finance and Performance Committee Minutes - 24 February 2022

 

 

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

 

20.

Te Kaha Project Delivery Ltd - Appointment of new director

s7(2)(a)

Protection of Privacy of Natural Persons

To protect the candidate's reputation in the event they are not appointed.

Immediately following notification to the candidate of the Council's decision.

21.

Overdue General and Rates Debtors at 31 January 2022 (Greater than $20,000 and 90 days)

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

Protection of Privacy of Natural Persons, Prejudice Commercial Position, Conduct Negotiations

To protect the privacy and the commercial position of the debtors;
Enable the Council to carry out negotiations when needed.

A redacted copy of the report can be released after the Committee has received the report but the names of the individuals and organisations will remain confidential.

22.

Major Cycleway Section 2 Funding Requirements

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

Commercial Activities, Conduct Negotiations

Tenders for both contracts have closed but not been awarded.  The release of this information would compromise the negotiations of those tenders.

Following the award of both construction tenders.

23.

Citizens' War Memorial and Lancaster Park War Memorial

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

Prevent Damage to the Public Interest, Commercial Activities, Conduct Negotiations

Could prejudice commerical or financial activities of Council and other parties

Full or redacted report can be released when the CE determines there are no grounds to withhold information