Finance and Performance Committee

Open Minutes

 

 

Date:                                    Thursday 28 April 2022

Time:                                   9.30am

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

 

 

Present

Chairperson

Deputy Chairperson

Members

Deputy Mayor Andrew Turner

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     -     via audio/visual link

Councillor Yani Johanson

Councillor Phil Mauger

Councillor Jake McLellan

Councillor Tim Scandrett

Councillor Sara Templeton

 

 

 

 

 

 

Principal Advisor

Leah Scales

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/

 


Finance and Performance Committee

28 April 2022

 

Part A           Matters Requiring a Council Decision

Part B           Reports for Information

Part C           Decisions Under Delegation

 

 

 

Karakia Tīmatanga: Given by Deputy Mayor Turner.    

 

The agenda was dealt with in the following order.

1.   Apologies Ngā Whakapāha

Part C

Committee Resolved FPCO/2022/00015

That the apologies received from Councillor Keown for absence and Councillor MacDonald for partial absence be accepted. That the apology from Mayor Dalziel for a late arrival and Councillor Gough for a possible early departure be accepted.

Deputy Mayor/Councillor Davidson                                                                                                                   Carried

 

2.   Declarations of Interest Ngā Whakapuaki Aronga

 

The Mayor, Deputy Mayor Turner and Councillors Gough and Templeton declared an interest item 13. Council-controlled organisations – Draft Statements of Intent for 2022/23 in relation to Christchurch City Holdings Limited.

 

Councillor Chen declared an interest item 13. Council-controlled organisations – Draft Statements of Intent for 2022/23 in relation to the Riccarton Bush Trust.

 

Councillors Gough, Mauger and MacDonald declared an interest item 13. Council-controlled organisations – Draft Statements of Intent for 2022/23 in relation to Civic Buildings Ltd.

 

Deputy Mayor Turner declared an interest in item 13. Council-controlled organisations – Draft Statements of Intent for 2022/23 in relation to Rod Donald Trust.

 

The Mayor, Deputy Mayor Turner, Councillors Gough and Templeton declared an interest in item 14. Christchurch City Holdings Ltd – Draft Statements of Intent 2022/23.

 

Councillor Scandrett decalred an interest in item 15. Venues Otautahi.

 

Deputy Mayor Turner and Councillor Davidson declared an interest in item 16. ChristchurchNZ Holdings Ltd – Draft Statement of Intent for 2022/23.

 

Councillor Mauger declared an interest in item 22. Organics Processing Plant.

 

 

A minutes silence was observed in recognition of Workers Memorial Day.

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

Part C

Committee Resolved FPCO/2022/00016

That the minutes of the Finance and Performance Committee meeting held on Thursday, 24 March 2022 be confirmed.

Deputy Mayor/Councillor Scandrett                                                                                                                  Carried

 

26. Resolution to Include Supplementary Reports

 

Committee Resolved FPCO/2022/00017

That the reports be received and considered at the Finance and Performance Committee meeting on Thursday, 28 April 2022.

Open Items

22.       Organics Processing Options

Deputy Mayor/Councillor Scandrett                                                                                                                  Carried

 

4.   Public Forum Te Huinga Whānui

Part B

There were no public forum presentations.

5.   Deputations by Appointment Ngā Huinga Whakaritenga

 

5.1      Dr Tracey McLellan, MP for Banks Peninsula

In relation to item 7 Christchurch Wastewater Treatment Plant Recovery Update and item 22. Organics Processing Options.

 

5.2      Michael Williams

In relation to item 7 Christchurch Wastewater Treatment Plant Recovery Update and item 22. Organics Processing Options.  A written copy of Mr Williams presentation was pre-circulated (copy attached).

Attachments

a       Michael Williams presentation  

 

5.3      Nicole Marshall

In relation to item 7 Christchurch Wastewater Treatment Plant Recovery Update and item 22. Organics Processing Options.

 

5.4      Bruce King

In relation to item 7 Christchurch Wastewater Treatment Plant Recovery Update and item 22. Organics Processing Options.

 

5.5      Geoffrey King

In relation to item 7 Christchurch Wastewater Treatment Plant Recovery Update and item 22. Organics Processing Options.

 

5.6      Don Gould

In relation to item 7 Christchurch Wastewater Treatment Plant Recovery Update. Mr Gould spoke to his presentation (attached.)

Attachments

a       Don Gould presentation  

 

5.7      Vicki Walker

In relation to item 7 Christchurch Wastewater Treatment Plant Recovery Update and item 22. Organics Processing Options.

 

 

Councillor left the meeting at10.32am and returned at 10.36am during Item 5.

 

The meeting adjourned at 10.52am and resumed at 11.10am.

6.   Presentation of Petitions Ngā Pākikitanga

Part B

There was no presentation of petitions.

 

7.   Christchurch Wastewater Treatment Plant Recovery Update

 

Committee Comment

1.              Staff spoke to their presentation (attached).

2.              The Committee asked staff to make the results of the air quality monitoring available to elected members once it has been received.

3.              The Committee noted the impact of the odour on residents and requested advice from staff and what support could be provided. The Committee also requested fortnightly progress  updates on progress with Waste Water Treatment Plant recovery.

 

Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1.         Receives the information in this update

2.         Notes that regular communications will be implemented to ensure residents in the local area and across the city are aware of all efforts being undertaken to expedite the removal process and reduce the effects of the odours.

3.         Notes that an update on the details of the insurance claim will be reported to the Insurance sub-committee

 

Committee Resolved FPCO/2022/00018

Part C

That the Finance and Performance Committee:

1.         Receives the information in this update

2.         Notes that regular communications will be implemented to ensure residents in the local area and across the city are aware of all efforts being undertaken to expedite the removal process and reduce the effects of the odours.

3.         Notes that an update on the details of the insurance claim will be reported to the Insurance sub-committee

4.         Request staff:

a.              Provide advice on ways that support could be provided for affected residents

b.              Report fortnightly to the Council or the Finance and Performance Committee on progress with Waste Water Treatment Plant recovery

 

Mayor/Councillor Galloway                                                                                                                                  Carried

 

Attachments

a       Staff Presentation Waste Water Treatment Plant Update  

 

 

 

 

The Mayor joined the meeting at 11.11am, and Councillors  Donovan and Johanson joined the meeting at 11.13am during item 7.

 

Having previously noting a conflict of interest Councillor Mauger left the meeting for all of item 22 and returned after the lunch adjournment.

 

22. Organics Processing Options

 

Committee Comment

1.              The Committee requested staff bring back, in one month, the full net cost to Council and implications of immediately closing the plant.

 

Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee resolves to:

1.         Agree in principle the relocation of the Organics Processing Facility to an alternative site

2.         Request staff to:

(a)   approach the market for options for location, partnerships, joint ventures, commercial opportunities, and

(b)   report to Council on short listed relocation options with a comparison to redevelopment of the current site by end February 2023.

3.         Support the continued operation at the Metro Place site with the current process controls to manage and mitigate odour until an alternative facility, or redevelopment of the current site, is operational.

4.         Agree that, should it be necessary to meet the interim capex needs of the existing facility, staff are able to utilise part of the current capital budget for the new facility.  Any capital expenditure will be confined to meeting compliance requirements and any decision to use the capex will be made by GM Infrastructure Planning & Regulatory Services in consultation with the Chair and Deputy Chair of the Finance & Performance Committee.

5.         Agree that the redacted information can be released when the Chief Executive is satisfied that there are no longer grounds under LGOMIA for withholding the information.

 

Committee Resolved FPCO/2022/00019

Part C

That the Finance and Performance Committee resolves to:

1.         Agree in principle the relocation of the Organics Processing Facility to an alternative site

2.         Request staff to:

(a)   approach the market for options for location, partnerships, joint ventures, commercial opportunities, and

(b)   report to Council on short listed relocation options with a comparison to redevelopment of the current site by end February 2023.

3.         Support the continued operation at the Metro Place site with the current process controls to manage and mitigate odour until an alternative facility, or redevelopment of the current site, is operational.

4.         Agree that, should it be necessary to meet the interim capex needs of the existing facility, staff are able to utilise part of the current capital budget for the new facility.  Any capital expenditure will be confined to meeting compliance requirements and any decision to use the capex will be made by GM Infrastructure Planning & Regulatory Services in consultation with the Chair and Deputy Chair of the Finance & Performance Committee, in the event that the Committee does not exist, in consultation with the Mayor and Deputy Mayor.

5.         Agree that the redacted information can be released when the Chief Executive is satisfied that there are no longer grounds under LGOMIA for withholding the information.

6.         Request staff bring back in one month the full net cost to Council and implications of immediately closing the plant.

7.         Note that Council is working with central government and Local MPs on shared outcomes regarding recycling.

Councillor Cotter/Councillor Johanson                                                                                                           Carried

 

 

 

The meeting adjourned at 1.12pm at the conclusion of Item 22 and resumed at 2.18pm.

Councillor Gough did not return to the meeting after the break.

Councillor Chu returned to the meeting via audio/visual link.

 Councillor McLellan returned to the meeting at 2.22pm and Mayor Dalziel return at 2.25pm during item 15.

 

15. Venues Ōtautahi draft Statement of Intent 2022/23

 

Committee Resolved FPCO/2022/00020 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.         Receives Venues Ōtautahi’s draft Statement of Intent for 2022/23.

Deputy Mayor/Councillor Chen                                                                                                                           Carried

 

 

An adjournment was held taken from 240pm to 3.00pm during item 15.

 

Election of a Chair

 

Committee Resolved FPCO/2022/00021

It was resolved on the motion of Councillor Davidson, seconded by Councillor Cotter  that Councillor Scandrett be appointed Chairperson for items 14, 16 and item 13 in relation to the Rod Donald Trust.

Councillor Davidson/Councillor Cotter                                                                                                            Carried

 

Councillor Coker left the meeting at 3.09pm and returned at 3.12pm during item 14.

 

 

 

14. Christchurch City Holdings Ltd - Draft Statements of Intent 2022/23

 

Committee Resolved FPCO/2022/00022 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.         Notes the draft Statements of Intent for 2022/23 for Christchurch City Holdings Ltd and its subsidiaries;

2.         Notes that Christchurch City Holdings Ltd’s business planning process for 2022/23 and subsequent years will end in May 2022 and its forecast dividend to the Council for the Statement of Intent’s three year period will be advised in time for inclusion in the Annual Plan for 2022/23; and

3.         Agrees to provide the following feedback on Christchurch City Holdings Ltd’s draft Statement of Intent for 2022/23:

a)    Acknowledges the work that Christchurch City Holdings have done to reflect requests by Council in their Letter of Expectations for 2022/23.

b)    That requests Christchurch City Holdings Ltd to continue to work with Council staff on the review of its dividend policy for inclusion in its final Statement of Intent for 2022/23, as requested in the Letter of Expectations for 2022/23; and

c)    Acknowledges the recommendations of the CCHL Strategic review coming to the new Council in November.

Councillor Scandrett/Councillor Cotter                                                                                                           Carried

 

 

 

16. ChristchurchNZ Holdings Ltd - Draft Statement of Intent for 2022/23

 

Committee Resolved FPCO/2022/00023 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.         Receives the draft Statement of Intent for ChristchurchNZ Holdings Limited for 2022/23.

2.         Approves the following:

a.         Capitalisation of CNZ via amalgamation of DCL as at 1 July 2022.

b.         The CNZ Urban Development Prioritisation Framework

c.         The CNZ/CCC Value Sharing Agreement

Councillor Scandrett/Councillor Templeton                                                                                                 Carried

 

Attachments

a       Item 16 Christchurch NZ  

 

 

Deputy Mayor Turner resumed Chair for Item 13 in relation to resolutions 2 and 3.

 

13. Council-controlled organisations - Draft Statements of Intent for 2022/23

 

Committee Resolved FPCO/2022/00024 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.              Receives Rod Donald Banks Peninsula Trust’s draft Statement of Intent for 2022/23;

 

Councillor Davidson/Councillor Cotter                                                                                                            Carried

 

Committee Resolved FPCO/2022/00025 Officer Recommendation accepted without change

That the Finance and Performance Committee:

2.              Receives Civic Building Ltd’s draft Statement of Intent for 2022/23;

 

Deputy Mayor/Councillor Scandrett                                                                                                                  Carried

 

Committee Resolved FPCO/2022/00026 Officer Recommendation accepted without change

That the Finance and Performance Committee:

3.              Receives Central Plains Water Trust’s draft Statement of Intent for 2022/23.

 

Councillor Scandrett/Councillor McLellan                                                                                                      Carried

 

 

20. Te Kaha Project Delivery Ltd - Draft Statement of Intent for 2022/23 and Quarter 2 Performance Report for period ending 31 December 2021

 

Committee Resolved FPCO/2022/00027 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.         Receives Te Kaha Project Delivery Ltd’s draft Statement of Intent for 2022/23; and

2.         Receives Te Kaha Project Delivery Ltd’s Quarter 2 Performance Report for the period ending 31 December 2021.

Deputy Mayor/Councillor Chen                                                                                                                           Carried

 

 

21. Te Kaha Project - Elected Member Update

 

Committee Resolved FPCO/2022/00028 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

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

Deputy Mayor/Councillor Mauger                                                                                                                      Carried

 

 

17. Local Government Funding Agency - Draft Statement of Intent 2022/23 and Shareholder Presentation

 

Committee Comment

1.              Mark Butcher the Chief Executive spoke to his presentation (attached).

 

Committee Resolved FPCO/2022/00029 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.         Notes the Local Government Funding Agency’s draft Statement of Intent for 2022/23; and

2.         Notes the investor presentation to be conducted by Mr Mark Butcher, Chief Executive of the Local Government Funding Agency at the Finance and Performance Committee’s meeting.

Deputy Mayor/Councillor Cotter                                                                                                                         Carried

 

Attachments

a       Local Government Funding Agency  

 

 

8.   Key Performance Results March 2022

 

Committee Comment

1.              The Committee requested staff to clarify why two percentage figures were given in LTP21.9.1.

2.              The Committee requested a briefing from staff on  excess water charges.

3.              The Committee requested the Research results from NIWA on LED lighting when available.

 

 

Committee Resolved FPCO/2022/00030 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

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

Deputy Mayor/Councillor Cotter                                                                                                                         Carried

 

 

9.   Financial Performance Report - March 2022

 

Committee Comment

1.              The Committee requested an update on the carry forward of the EV grants that were referenced in paragraph 15 on page 64 of the staff report.

 

Committee Resolved FPCO/2022/00031 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.         Receives the information in the Financial Performance Report for March 2022.

2.         Notes the likely breach of the Funding risk policy limit from April to September 2022 and the staff advice supporting it.

Deputy Mayor/Councillor Chen                                                                                                                           Carried

 

 

10. Capital Programme Performance Report - March 2022

 

Committee Comment

1.              The Committee requested an update on when will start on the section of the South Express between Templeton and Eastland to Hornby.

2.              The Committee requested an update on budget issues relating to the Halswell Junction Road Extension project.

 

Committee Resolved FPCO/2022/00032 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.         Receive the information in the Capital Programme Performance Report – March 2022

Deputy Mayor/Councillor Templeton                                                                                                               Carried

 

 

11. Vertical Capital Delivery : Bi-Monthly Update

 

Committee Comment

1.              The Committee requested that the Diamond Harbour Wharf plan be circulated.

 

Committee Resolved FPCO/2022/00033 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.         Receive the information in the Vertical Capital Delivery :  Bi-Monthly Update Report.

Councillor Cotter/Councillor Davidson                                                                                                            Carried

 

 

12. Delegations and Visibility of Budget Changes in the Capital Programme

 

Committee Resolved FPCO/2022/00034 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.         Approve major project budget changes, over $5m, in the programmes of Three Waters, Transport, Parks, Digital, Recreation, Sports and Events, and Vertical Capital, following ELT endorsement.

2.         Approve budget changes over $500,000, between standalone capital projects in the Community and Major Facility delivery programme agreed in the LTP.

3.         Receive a regular quarterly briefing on project budget changes between $250,000 and $5m, approved by ELT.

4.         Recommend these delegations be reviewed and adjusted in 12 months’ time, if required.

Deputy Mayor/Councillor Cotter                                                                                                                         Carried

 

 

18. Annual Plan 2022/23 - proposed timeline and process for adopting the final Annual Plan

 

Committee Resolved FPCO/2022/00035 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.         Receive the information in the Annual Plan 2022/23 – proposed timeline and process for adopting the final Annual Plan Report

2.         Confirm the content and designated status (Elected Member Information Only, or public briefing) for briefings of 17-25 May 2022

3.         Advise any other changes to the proposed timeline to conclude the Annual Plan 2022/23.

Councillor Scandrett/Councillor Cotter                                                                                                           Carried

 

 

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

 

Committee Resolved FPCO/2022/00036 Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

1.         Receives the Overdue General and Rates Debtors (Greater than $20,000 and 90 days) report.

2.         Notes the action being taken to recover the overdue amounts.

3.         Resolves that 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.

Councillor Cotter/Councillor Scandrett                                                                                                           Carried

 

 

23. Resolution to Exclude the Public

 

Committee Resolved FPCO/2022/00037

Part C

That at 5.10pm the resolution to exclude the public set out on pages 518 to 519 of the agenda be

Deputy Mayor/Councillor Scandrett                                                                                                                    Carried

 

The public were re-admitted to the meeting at 5.16pm.

 

Karakia Whakamutunga: Given by Deputy Mayor Turner.

 

Meeting concluded at 5.16pm.

 

CONFIRMED THIS 26th DAY OF MAY 2022.

 

Deputy Mayor Andrew Turner

Chairperson