Finance and Performance Committee

Agenda

 

 

Notice of Meeting:

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

 

Date:                                    Wednesday 31 May 2023

Time:                                   9.30 am

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

 

 

Membership

Chairperson

Deputy Chairperson

Members

Councillor Sam MacDonald

Councillor Melanie Coker

Mayor Phil Mauger

Deputy Mayor Pauline Cotter

Councillor Kelly Barber

Councillor Celeste Donovan

Councillor Tyrone Fields

Councillor James Gough

Councillor Tyla Harrison-Hunt

Councillor Victoria Henstock

Councillor Yani Johanson

Councillor Aaron Keown

Councillor Jake McLellan

Councillor Andrei Moore

Councillor Mark Peters

Councillor Tim Scandrett

Councillor Sara Templeton

 

 

26 May 2023

 

 

Principal Advisor

Leah Scales

General Manager - Resources / CFO

Tel: 941 8999

Principal Advisor

Dawn Baxendale

Chief Executive

Tel: 941 8999

 

 

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 watch the meeting live, or a recording after the meeting date, go to:
http://councillive.ccc.govt.nz/live-stream
To view copies of Agendas and Minutes, go to:
https://www.ccc.govt.nz/the-council/meetings-agendas-and-minutes/

 


Finance and Performance Committee

31 May 2023

 

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

 

Chair

Councillor MacDonald

Deputy Chair

Councillor Coker

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

31 May 2023

 

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 Organisational Performance Results - April 2023.................................... 17

B         8.        Financial Performance Report - April 2023................................................... 33

B         9.        Capital Programme Performance Report April 2023...................................... 41

B         10.      2022-2023 Residents Survey Results........................................................... 93

B         11.      ChristchurchNZ Holdings Ltd - Quarter 3 performance................................ 453

C          12.      Christchurch City Holdings Ltd - Draft Statements of Intent 2023/24............. 473

C          13.      Civic Financial Services - Annual General Meeting and Annual Report for 2021/22 673

C          14.      Request to drawdown funds for Major Cycleway Route (MCR) Rapanui Shagrock, Section 3............................................................................................... 721

C          15.      Shovel Ready Funding Shortfall - Major Cycleway Routes............................ 729  

C          16.      Resolution to Exclude the Public.............................................................. 742

Karakia Whakamutunga

 


Karakia Tīmatanga

Whakataka Te hau ki Te uru

Whakataka Te hau ki Te tonga

Kia makinakina ki uta

Kia mataratara ki Tai

E hi ake ana te atakura

He tio, he huka, he hau hu

Tihei Mauri Ora

 

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 Wednesday, 26 April 2023  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

There were no petitions received at the time the agenda was prepared.


Finance and Performance Committee

31 May 2023

Unconfirmed

 

 

Finance and Performance Committee

Open Minutes

 

 

Date:                                    Wednesday 26 April 2023

Time:                                   9.30 am

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

 

 

Present

Chairperson

Deputy Chairperson

Members

Councillor Sam MacDonald

Councillor Melanie Coker

Mayor Phil Mauger

Deputy Mayor Pauline Cotter

Councillor Kelly Barber

Councillor Celeste Donovan – via audio/visual link

Councillor Tyrone Fields

Councillor James Gough – via audio/visual link

Councillor Tyla Harrison-Hunt

Councillor Victoria Henstock

Councillor Yani Johanson

Councillor Aaron Keown

Councillor Jake McLellan

Councillor Andrei Moore

Councillor Mark Peters

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 8999

 

David Corlett

Committee and Hearings Advisor

941 5421

david.corlett@ccc.govt.nz

www.ccc.govt.nz

To watch a recording of this meeting, or future meetings live, go to:
http://councillive.ccc.govt.nz/live-stream
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

1.             

 

 

Karakia Tīmatanga: Given by all Councillors

 

 

The agenda was dealt with in the following order.

2.       1.        Apologies Ngā Whakapāha

Part C

Committee Resolved FPCO/2023/00029

That the apologies received from Councillor Gough for a possible early departure be accepted.

Councillor MacDonald/Mayor                                                                                                                              Carried

 

3.       2.        Declarations of Interest Ngā Whakapuaki Aronga

Part B

Councillors Henstock and McLellan declared an interest in Item 11 and took no part in the debate or voting on this matter.

Councillors Scandrett and Barber declared an interest in Item 12 and took no part in the debate or voting on this matter.

Councillors MacDonald, McLellan and Gough declared an interest in Item 13 - 1a and took no part in the debate or voting on this matter.

Councillor Fields declared an interest in Item 13 – 1c and Item 14 and took no part in the debate or voting on this matter.

Councillors Peters declared an interest in Item 13 – 1d and took no part in the debate or voting on this matter.

Councillors MacDonald and Templeton declared an interest in public excluded Item 20 and took no part in the debate or voting on this matter.

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

Part C

Committee Resolved FPCO/2023/00030

That the minutes of the Finance and Performance Committee meeting held on Wednesday, 22 March 2023 be confirmed.

Councillor MacDonald/Councillor Scandrett                                                                                                 Carried

 

5.       4.        Public Forum Te Huinga Whānui

Part B

There were no public forum presentations.

6.       5.        Deputations by Appointment Ngā Huinga Whakaritenga

Part B

There were no deputations by appointment.

7.       6.        Presentation of Petitions Ngā Pākikitanga

Part B

There was no presentation of petitions.

 

8.       19.      Resolution to Include Supplementary Reports

 

Committee Resolved FPCO/2023/00031

That the reports be received and considered at the Finance and Performance Committee meeting on Wednesday, 26 April 2023.

Public Excluded Items

20.       Christchurch City Holdings Ltd Governance

Councillor MacDonald/Councillor Templeton                                                                                               Carried

 

Councillor Johanson requested that his vote against this recommendation be recorded.

 

 

9.       16.      Resolution to Exclude the Public

 

Committee Resolved FPCO/2023/00032

Part C

That Abby Foote, Paul Silk and Mary Devine of Christchurch City Holdings Ltd Governance, remain after the public have been excluded for Item 18 and Abby Foote and Paul Silk remain for Item 20 of the public excluded agenda as they have knowledge that is relevant to these items and will assist the Council.

And

That at 9.33am the resolution to exclude the public set out on pages 306 to 307 of the agenda be adopted.

Councillor MacDonald/Councillor Peters                                                                                                          Carried

 

 

The public were re-admitted to the meeting at 11.15am, and following a short break the meeting resumed at 11.30pm.

 

10.  10.      Te Kaha Project - Elected Member Update

 

Committee Resolved FPCO/2023/00033 Officer Recommendations accepted without change.

Part C

That the Finance and Performance Committee:

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

Mayor/Councillor Peters                                                                                                                                        Carried

 

 

Councillor Templeton left at 11.40am and returned at 11.43am during Item 10.

 

11.  11.      ChristchurchNZ Holdings Ltd - Draft Statement of Intent for 2023/24

 

Committee Comment

1.         Ali Adams (Chief Executive), Therese Arseneau (Chair), and Cath Carter (GM Urban Development) spoke to their presentation (attached).

 

Committee Resolved FPCO/2023/00034 Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1.         Receives the draft Statement of Intent for 2023/24 for ChristchurchNZ Holdings Ltd;

2.         Request that ChristchurchNZ Holdings Ltd reflects in its SOI that its urban development projects will align with the Greater Christchurch and Ōtautahi Christchurch strategic planning documents (under development) and other city strategic directions such as the Economic Development Ambition; and

3.         Notes that ChristchurchNZ Holdings Ltd will include the full suite of financial and non-financial performance targets in its final Statement of Intent.

Councillor Harrison-Hunt/Mayor                                                                                                                        Carried

 

Attachments

a       ChristchurchNZ Holdings Ltd Presentation  

 

Councillor Coker assumed the Chair for consideration of Item 13.

 

12.  13.      Council-controlled organisations - Draft Statements of Intent for 2023/24

 

Committee Recommendation Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1.    Receives the draft Statements of Intent for 2023/24 for the following Council-controlled organisations:

 

 

Committee Resolved FPCO/2023/00035

a.         Civic Building Ltd

Mayor/Deputy Mayor                                                                                                                                               Carried

 

Committee Resolved FPCO/2023/00036

b.         Local Government Funding Agency

Mayor/Deputy Mayor                                                                                                                                               Carried

 

Committee Resolved FPCO/2023/00037

c.         Rod Donald Banks Peninsula Trust

Mayor/Councillor Coker                                                                                                                                         Carried

 

Committee Resolved FPCO/2023/00038

d.         Riccarton Bush Trust

Mayor/Deputy Mayor                                                                                                                                               Carried

 

Committee Resolved FPCO/2023/00039

e.         Te Kaha Project Delivery Ltd

Mayor/Deputy Mayor                                                                                                                                               Carried

 

 

Councillor Donovan left the meeting at 12.15pm during consideration of Item 12.

Councillor Henstock left the meeting at 12.27pm during consideration of Item 12.

Councillor Moore left the meeting at 12.31pm and did not return.

Councillor Barber left the meeting at 12.34pm and returned at 12.36pm during consideration of Item 12.

 

Councillor MacDonald returned to the Chair.

13.  12.      Venues Ōtautahi - Draft Statement of Intent 2023/24

 

Committee Comment

1.         Caroline Harvie-Teare (Chief Executive), Gill Cox (Chair) and Dale Andrews (CFO) spoke to their presentation (attached).

 

Committee Resolved FPCO/2023/00040Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1.         Receives the draft Statement of Intent for Venues Ōtautahi for 2023/24; and

2.         Provides the following shareholder comments to the Venues Ōtautahi board for its consideration regarding the performance targets:

a)    they focus on demonstrating the achieving of outcomes to the extent possible;

b)    annual carbon reduction targets are included; and

c)    Venues Ōtautahi staff engage with Council staff on proposed changes to non-financial performance targets before the Statement of Intent for 2023/24 is finalised; and

d)    changes to the financial forecasts in the final Statement of Intent 2023/24 and reasons for changes should be clearly documented.

Councillor MacDonald/Deputy Mayor                                                                                                               Carried

 

Attachments

a       Venues Otautahi Presentation  

 

 

14.  14.      Rod Donald Banks Peninsula Trust - Half year report for six months ending 31 December 2022 and Civic Financial Services Ltd - Statement of Intent 2023

 

Committee Resolved FPCO/2023/00041 Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1.         Receives the half year report for the Rod Donald Banks Peninsula Trust for the period 1 July-31 December 2022; and

2.         Receives the Statement of Intent for 2023 for Civic Building Ltd.

Councillor Keown/Mayor                                                                                                                                       Carried

 

 

15.  15.      Central Plains Water Trust - Council participation

 

Committee Resolved FPCO/2023/00042 Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1.         Agrees that the Council remains in partnership with Selwyn District Council as a shareholder of the Central Plains Water Trust and a member of the Central Plains Water Joint Committee;

2.         Appoints Deputy Mayor Cotter and Councillor Peters to the Central Plains Water Joint Committee; and

3.         Agrees that staff review and report on the efficacy of the governance arrangements for the Central Plains Water Trust in 18 months.

Councillor Keown/Councillor McLellan                                                                                                            Carried

 

Councillor Johanson requested that his vote against  recommendation 1 be noted.

 

 

16.  7.        Key Organisational Performance Results - March 2023

 

Committee Resolved FPCO/2023/00043 Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1.         Receive the information in the Key Organisational Performance Results - March 2023 report.

Councillor MacDonald/Councillor Harrison-Hunt                                                                                        Carried

 

Councillor Henstock returned to the meeting at 12.57pm during Item 9.

 

17.  9.        Capital Programme Performance Report March 2023

 

Committee Resolved FPCO/2023/00044 Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1.         Receive the information in the Capital Programme Performance Report to the end of March 2023.

Councillor MacDonald/Councillor McLellan                                                                                                   Carried

 

 

Councillor Cotter left the meeting at 1.12pm and returned at 1.14pm during Item 8.

 

18.  8.        Financial Performance Report - March 2023

 

Committee Resolved FPCO/2023/00045 Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1.         Receive the information in the Financial Performance Report for March 2023.

Councillor McLellan/Councillor Coker                                                                                                              Carried

 

 

Karakia Whakamutunga: Given by all Councillors 

 

 

 

 

 

 

 

 

 

 

Meeting concluded at 1.19pm.

 

CONFIRMED THIS 31ST DAY OF MAY 2023

 

Councillor Sam MacDonald

Chairperson


Finance and Performance Committee

31 May 2023

 

 

7.     Key Organisational Performance Results - April 2023

Reference / Te Tohutoro:

23/668069

Report of / Te Pou Matua:

Peter Ryan, Head of Corporate Planning & Performance Peter.Ryan@ccc.govt.nz

General Manager / Pouwhakarae:

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

 

 

1.   Nature of Information Update and Report Origin

1.1       The purpose of this report is to provide Council with an overview of service, project and budget performance, as adopted through the 2021-31 Long Term Plan (and Annual Plan 2022/23), against organisational performance targets.

The key organisational performance targets include:
1.1.1 Service delivery
1.1.2 Capital projects (both planning and delivery)
1.1.3 Finance

1.2       Management-initiated performance goals.

2.   Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1.         Receive the information in the Key Organisational Performance Results - April 2023 report.

3.   Brief Summary (briefly include any relevant background details or context)

3.1       Organisational performance forecasts as at the end of April 2023, for the second year of the LTP 2021-31 (financial year to June 2023).

 

 

3.2       Level of service delivery is forecast at 86.0%, against a target of 85%, showing a small decline from the March forecast.

3.3       Key project delivery is forecast at 100%, remaining stable from March, while Non-Key project shows a small decline with delivery forecast at 77.0% (both against a target of 85%). For more information refer to the Capital Programme Performance Report.

3.4       90% of FY2024 funding programme budgets have been allocated (projects initiated by 1st March 2023) meeting the organisational target of 90%.

3.5       77.0% of FY2025/FY2026 funding programme budgets have been drawn down (by 1st May 2023) against a target of 90%.

3.6       The organisation is forecasting a year-end operational surplus of $1.7m.

3.7       Forecast for capital expenditure is presently at -17.0%, outside ELT’s target range. In line with the Executive Leadership Team (ELT) target, this forecast includes core and externally funded work, but excludes Te Kaha and Parakiore.

4.   Service delivery

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

 

4.1       Community levels of service (LOS) is forecast 86.0% delivery against the performance target of 85%, declining slightly from March 2023 forecast reporting to Committee.

4.2       Comments and remedial actions from managers for LOS exceptions are available in Attachment A.

4.3       Amongst current the LOS exceptions are a number relating to residents’ satisfaction results from the Residents Survey 2021/22. The results were initially presented with staff response plans to Council on 9 June 2022, with a 6-month update compiled and presented to Council at the meeting of 30 November 2022. The update included revised responses from Heads of Service, providing an interpretation of the results and details of actions to be taken to improve / maintain resident service satisfaction. Results from the Residents Survey 2022/23 are expected to be available soon and once they are they will be factored into future months reporting.

4.4       Transport activity have several exceptions related to road resurfacing, transport safety, access, mode share and resident satisfaction.

4.5       Water Supply activity is impacted by exceptions relating to leakage and average water consumption rates, and time to attend and resolve urgent callouts.

4.6       Impacts are also noticeable for some regulatory services, such as increases in consent volumes leading to delays in consent processing. Extensive effort around recruitment, contracting and process improvement initiatives have been underway for some time to provide the additional capacity needed, showing year-to-date improvement in LOS performance.

4.7       New exceptions are noted for the following activities: Building Regulation; Regulatory Compliance and Licensing; and Strategic Planning, Future Development and Regeneration.

4.8       The scatter diagram below is an overview of the performance of the top-ten activities.

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

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

 

5.   Capital projects - delivery and planning

ELT Goal: Deliver 85% Key capital projects to ‘delivery complete’ milestones

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

 

5.1       Key project delivery is forecast at 100% delivery against the target of 85%.  All identified key projects are forecast to meet milestone baseline target date at year-end.

5.2       Non-Key project milestone delivery is forecast at 77.0% delivery against the target of 85%.

5.3       For further information and underlying project detail, refer to the Capital Programme Performance Report for April 2023.

5.4       Below is a forward view of capital delivery performance (financial), an overview of capital delivery in recent years against plan, plus capital delivery planned for the first three years of the LTP 2021-31 (2021/22 to 2023/24).

5.5       Figures are updated for 2022/23, to align with the Capital Programme Performance report.

5.6       There has been stability of financial delivery year-on-year for projects CCC is responsible for delivering (green line – total spend/total forecast), ranging consistently in a band between $371m to $409m spend per annum over the previous four years (2018/19 to 2021/22).

5.7       The ELT performance target for capital financial delivery is based on all delivery CCC is accountable for, regardless of funding source.

5.8      

For this year (year 2 of the LTP 2021) the total programme budget set for CCC to deliver is $469.5m (blue line). The April 2023 Financial Report forecast for capital financial expenditure is $390m, which equates to 83% delivery. As noted above, this forecast includes both core and externally funded works, but excludes Te Kaha and the remainder of Parakiore funding, in line with the ELT performance goal.

5.9       In adopting the Draft Annual Plan 2023/24, $137m of capital has been rephased which has changed the future year CCC delivery programme for 2023/24 from $753m (as at Annual Plan 2022/23) to $616m (black line).

5.10    In reflection of this the Council delivery budget the 2023/24 value has moved from $599m (as at Annual Plan 2022/23) to $465m (blue line, includes core and externally funded work, excluding Te Kaha and remainder of Parakiore build funding.)

5.11    For more detail refer to the Financial Performance and Capital Programme Performance reports.

 

ELT Goal: Ensure capital planning for FY24 funding programme budgets allocated,
90% by 1 March 2023.

ELT Goal: Ensure capital planning for FY25 & FY26 funding programme budgets drawn down, 90% by 1 May 2023.

5.12    Capital planning targets are intended to monitor the draw-down and allocation of future capital funding programme budgets, in this case years 3, and 4 & 5 of 2021-31 LTP. This helps the business plan and prepare for future capital project delivery, to effectively implement the LTP.

5.13    90% of FY2024 funding programme budgets have been allocated (projects initiated) by 1st March 2023, meeting target for this corporate priority.

5.14    77.0% of FY2025/FY2026 funding programme budgets have been drawn down (by 1st May 2023) against a target of 90%. With time remaining for the business to complete further draw downs the May performance reporting will confirm whether the target has been met.

6.   Finance

6.1       The organisation is forecasting an operational surplus of $1.7m (after carry-forwards of $5.5m). For more information refer to the Financial Performance Report.

6.2       Capital expenditure variance at year-end remains forecast is at -17.0%. More detail is available in the Capital Programme Performance Report.

 

Attachments / Ngā Tāpirihanga

No.

Title

Reference

Page

a

LOS Exception Commentary April 2023

23/717646

23

 

 

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

Document Name – Location / File Link

Not applicable

 

 

 

 

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

Amber Tait - Performance Analyst

Johan Jacobs - Senior Business Analyst

Boyd Kedzlie - Senior Business Analyst

Approved By

Peter Ryan - Head of Corporate Planning & Performance

Lynn McClelland - Assistant Chief Executive Strategic Policy and Performance

 

 


Finance and Performance Committee

31 May 2023

 











Finance and Performance Committee

31 May 2023

 

 

8.     Financial Performance Report - April 2023

Reference / Te Tohutoro:

23/621379

Report of / Te Pou Matua:

Russell Holden – Head of Finance
(Russell.Holden@ccc.govt.nz)

General Manager / Pouwhakarae:

Leah Scales, General Manager Resources/Chief Financial Officer (Leah.Scales@ccc.govt.nz)

 

 

1.   Nature of Information Update and Report Origin

1.1       The purpose of this report is for the Finance and Performance Committee to be updated on financial performance to April 2023, including the current year forecast, and receive current treasury information. An update on Rates debt is provided each quarter.

1.2       This is a regular monthly report that goes to the Committee.

2.   Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1.         Receive the information in the Financial Performance Report for April 2023.

3.   Brief Summary

3.1       The financial result for April shows a year to date operational surplus of $14 million. The current forecast surplus of $1.7 million (after signalled budget carry forwards) is an improvement of $1.3 million from the $0.4 million surplus forecast reported last month.

3.2       The total capital programme continues to forecast an under spend, currently $27.4 million. This comprises an under spend of $79.5 million on the core/external funded programme, partly offset by an earlier spend of $52.1 million on Te Kaha/Parakiore.

3.3       All treasury risk positions are within policy limits.

3.4       There is no material change in Rates debt.

 

3.5      

4.   Operating Forecast

4.1       The current forecast surplus of $1.7 million (after signalled carry forwards of $5.5 million) is a $1.3 million improvement from the March forecast. The improvement  is mainly due to a favourable movement in Transport (net $0.9m) due to a July storm capitalisation issue,  higher revenues in Recreation & Sports ($0.3m) and lower staff costs in Citizens & Community ($0.2m).

4.2       The forecast is updated monthly and continually changes as new information and events come to light. With an operational budget of $675 million, a move of $1 million amounts to only 0.15%. The risk remains that any adverse events could negatively impact the overall position of the Council. To mitigate these, regular forecasting and reporting at all levels in the organisation occurs to ensure issues are identified, monitored, and addressed by management on an ongoing basis. Material risks are reported to and monitored by the executive team, with a view to managing the financial outcome of the organisation to within that approved by the Council.

4.3       Capitalisation of staff time remains a key issue, driven by sickness, leave, staff turnover, and recruitment difficulty. It continues to be actively managed within the Units impacted to minimise financial impact.

4.4       Significant expenditure carry forwards signalled to date include:

-   Edgeware Pool grant ($3m – funded via borrowing) - sufficient funds need to be realised to demonstrate the capability to build and operate the pool prior to Council releasing its contribution

-   Proposed Plan Change 14 (Housing and Business Choice) ($1.4m)

-   Port Hills Red Zone redevelopment costs ($1m) – work associated with the reconfiguration of land

-   Vertical Capital Delivery – EQ Repair/Rebuild programme opex costs ($0.9m)

5.   Operational Expenditure and Revenue

5.1       This covers day to day spend on staffing, operations and maintenance, and revenues to fund it.

5.2       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 to show the operational year to date and forecast cash surplus or deficit.


Year to Date Results

Forecast Year End Results

After Carry Forwards

$m

Actual

Budget

Var

 

Forecast

Budget

Var

 

Carry Fwd

Var

 

Revenues

(828.2)

(812.3)

15.9

 

(892.7)

(880.4)

12.3

 

0.9

11.4

 

Expenditure

570.0

568.7

(1.3)

 

676.3

675.5

(0.8)

 

7.8

(8.6)

 

Funds not available for Opex

211.4

210.8

(0.6)

 

209.2

204.9

(4.3)

 

(3.2)

(1.1)

 

Operating (Surplus)/Deficit

(46.8)

(32.8)

14.0

(7.2)

-

7.2

5.5

1.7

5.3       Brief summaries of revenues and expenditures are highlighted below.

5.4       Revenues are $15.9 million higher than budget year to date, forecast to be $11.4 million higher at year end after bring back (early receipt of FY24 Transwaste dividend).

 

 

Key drivers of actual and forecast variances to budget include:                            YTD       Forecast
                                                                                                                                                             (after c/f)

·     Higher Interest revenues (partially offset by higher debt servicing costs)                $5.6m          $7.0m

·     Higher Subvention receipts                                                                                      $2.3m          $2.3m

·     Rates Revenues (2021/22 rating growth higher than planned - $1.5m)                                  $2.6m               $2.2m

·     Higher Transwaste dividends (early receipt to bring back from FY24)                    $1.9m          $1.1m

·     Rec & Sport revenues (He Puna Taimoana $0.6m forecast)                                                          $2.0m          $1.0m

·     Higher Building Consent volumes (offset by higher resourcing costs)                  $1.2m          $0.7m

·     EcoCentral Volume rebate received                                                                      $0.8m          $0.8m

·     Waka Kotahi subsidies (offset by higher Transport emergency maintenance costs) $0.2m          ($0.2m)

·     Resource Consents (significant discounts  – due to statutory timeframe not met)      ($0.9m)          ($1.0m)  

·     Three Waters (lower excess water revenues, partially offset by higher trade                    ($1.3m)     ($0.8m)

                                     waste charges)

·     Lower Burwood Landfill revenues                                                                          ($1.5m)      ($1.6m)

·     Better off Funding initial receipt                                                                            ($2.9m)            -

 

5.5       Expenditure is $1.3 million higher than budget year to date, and forecast to be $8.6 million higher at year end (after $7.8 million of signalled budget carry forwards).

Key drivers of actual and forecast variances to budget include:                            YTD       Forecast

                                                                                                                                                                                   (after c/f)

·     Higher debt servicing costs (offset by higher interest revenues)                                            ($4.0m)          ($5.7m)

·     Three Waters higher operating/maintenance costs (operating costs timing)($3.3m)      ($1.5m)

·     Lower Capitalisation of staff time (net of lower personnel costs)                         ($3.2m)      ($3.2m)

·     Building Consenting additional resourcing (partly offset by higher revenues)  ($2.1m)          ($2.0m)

·     Vertical Capital Delivery slower spend (carry forward of $1.1m forecast)               $0.8m          $0.2m

·     Housing expenditure (partially offset by lower revenues aligned to OCHT calcs)               $0.9m          $0.5m

·     Parks expenditure timing                                                                                          $0.9m               -

·     Strategic Planning professional advice spend ($1.4m c/f for Plan Change 14)     $1.0m          $0.6m

·     Internal Burwood Landfill revenues (from Council capital projects)                              $1.8m           $1.5m

·     Crown funded Water transition expenditure timing                                       $2.2m          $0.7m

·     Grants and levies (incl. EV & Vacant land remissions)                                                                           $3.6m               $0.6m

 

5.6       Funds not available for opex - items included in this category contributing to the variance are Housing and Dogs (both non-rates funded), Capital Endowment funded projects, and Capital grants (borrowed).


 

6.   Capital Expenditure and Revenue

6.1       This section covers the capital programme spend and funding relating to it.


Year to Date Results

Forecast Year End Results

After Carry Forwards

$m

Actual

Budget

Var

 

Forecast

Budget

Var

 

Carry Fwd

Var

 

Core Programme

264.7

265.3

0.6

 

365.9

414.5

48.6

 

28.3

20.3

 

External Funded Programme

36.9

34.6

(2.3)

 

44.7

55.0

10.3

 

10.1

0.2

 

Less unidentified Carry Forwards

-

-

-

 

(20.6)

-

20.6

 

41.1

(20.5)

 

Core/External Funded Programme

301.6

299.9

(1.7)

390.0

469.5

79.5

79.5

-

Te Kaha/Parakiore

110.5

75.9

(34.6)

 

155.9

103.8

(52.1)

 

(52.1)

-

 

Total Capital Programme

412.1

375.8

(36.3)

545.9

573.3

27.4

27.4

-

Revenues and Funding

(392.2)

(348.6)

43.6

 

(469.6)

(410.7)

58.9

 

43.9

15.0

 

Borrowing required

19.9

27.2

7.3

76.3

162.6

86.3

71.3

15.0

 

Capital Expenditure

6.2       Gross capital expenditure of $412.1 million has been incurred year to date. A further $133.8 million is forecast to be spent in the next two months.

6.3       The $545.9 million forecast spend is based on a Core/External Funded spend of $390 million, and $155.9 million on the Te Kaha and Parakiore projects.

6.4       Project managers have identified $38.4 million to be carried forward on specific projects in the Core/External Funded Programme. The forecast includes an additional $20.6 million of expected carry forwards yet to be specifically identified (based on actuals to date and historical trend analysis).

6.5       There is currently a forecast spend of $133.4 million for Te Kaha this financial year, compared to a budget of $78.5 million. The earlier forecast cost of $54.9 million will be covered by a bring forward from the 2023/24 budget of both expenditure and matching Crown funding. As a result Council’s funding share of the project will commence earlier than planned.

6.6       For further information on capital expenditure, please refer to the Capital Programme Performance Report.

Capital Revenues and Funding

6.7       Capital revenues and funding are a net $43.6 million higher year to date, and forecast to be $58.9 million higher than budget before carry forwards comprising:

6.7.1   Higher revenues than budget of $58.8 million year to date, forecast to be $73.4 million higher mainly due to earlier receipts of Te Kaha Crown revenues ($38.7 million YTD / $54.9 million forecast), and higher development contributions ($24.3 million YTD / $26 million forecast). These are partially offset by slower timing of Shovel Ready revenues ($6 million YTD / $9 million forecast).

6.7.2   Lower Reserve drawdowns of $15.2 million year to date, forecast to be $14.5 million lower - mainly due to some development contributions unable to be drawn at present amd set aside to fund future works  ($17.4 million YTD / $16 million forecast); partially offset by higher Housing Fund drawdowns of $2 million year to date ($1.5 million forecast) due to earlier capital spend.


 

7.   Treasury

Policy Compliance

7.1       All Treasury risks are within Policy limits, with no breaches projected over the coming year:

Risk Area

Compliance

Plain-language meaning

Liquidity Risk

Yes

(cash availability)

Funding Risk

Yes

(spread of debt maturities)

Interest Rate Risk

Yes

(managing interest costs)

Counterparty Credit Risk

Yes

(not all eggs in one basket)

 

Borrowing, Advances to Related Parties, and Bank Deposits

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

7.3       Net Debt by Jun-23 is expected to be only modestly higher than at Jun-22, with higher Gross Debt off-set by higher Advances to related parties (mostly CCHL).

Funding & Interest Rates

7.4       Council’s projected funding needs, per financial year, are shown in the chart below, split between the maturities of existing gross borrowing (green) and expected new borrowing requirements (grey).  [note: the grey future borrowing requirement is being updated through the FY24 Annual Plan process].

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7.5       Council’s interest rate risk is managed to reduce the volatility of interest costs from year to year. Most existing Council debt has been fixed for at least the next three years, which will limit the impact of current higher interest rates on Council’s future borrowing costs. 

 

8.   Rates Debt as at 30 April 2023

8.1       Rates debt decreased $0.7 million this period, as shown in the table below.

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8.2       The graph below shows 90+ days rates debt as a percentage of the annual rates strike that year, with a three month moving average to smooth the quarterly cycle, and indicates that rate arrears are in hand. However, economic factors (e.g. mortgage rate increases) may impact on this over the coming year.

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8.3       As at 30 April 2023, there are 32 individual properties with arrears greater than $20,000 (and where at least some of those arrears are older than 90 days). Total arrears on those properties is $1.2 million.

 

 

Attachments / Ngā Tāpirihanga

There are no attachments for this report.

 

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

Document Name – Location / File Link

Not applicable

 

 

 

 

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

Annie Yang - Reporting Accountant

Steve Ballard - Group Treasurer

Bruce Moher - Manager Corporate Reporting

Martin Zelas - Team Leader Rates

Approved By

Russell Holden - Head of Finance

Leah Scales - General Manager Resources/Chief Financial Officer

 

 


Finance and Performance Committee

31 May 2023

 

 

9.     Capital Programme Performance Report April 2023

Reference / Te Tohutoro:

22/1683000

Report of / Te Pou Matua:

Andrew Robinson, Head of Programme Management Office (andrew.robinson@ccc.govt.nz)

General Manager / Pouwhakarae:

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

 

 

1.   Nature of Information Update and Report Origin

1.1       The purpose of this report is to present to the Council meeting the monthly Capital Programme Performance Report April 2023.

1.2       This report provides Elected Members with oversight on the performance of the Capital Programme.

2.   Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1.         Receive the information in the Capital Programme Performance Report to the end of April 2023.

 

3.   Brief Summary

3.1       The consolidated FY23 forecast for the CCC Capital component of the programme (excl. Te Kaha and Parakiore) as reported by Project Managers is $408.8m. This is a decrease on last month’s reporting ($417.9m). 

3.2       The PMO forecast for the CCC Capital component remains at $390m this month (83% of budget). This is based on programme analysis, including year to date actuals, historical trends and the current outlook.

3.3       The major facilities, Te Kaha and Parakiore, are progressing and are reported in more detail elsewhere.  Significant expenditure is still forecast for Te Kaha through the balance of the financial year as the superstructure emerges.  A bring back is utilised in FY23 for Te Kaha, and the project remains on track to budget for all years.

3.4       Both Matatiki (Hornby Service Centre) and The Court Theatre (Performing Arts) are progressing well with construction underway on both projects, however some significant carry forward for the Court Theatre is expected to get alignment between Budgets and construction schedules.

3.5       The Three Waters forecast is slightly down again this month, from $159.6m to $157.3m (85% of budget at end of April).  Both Water Supply and Stormwater projects are forecasting good progress, however some Wastewater projects are still reporting delays in contract award but are at or near award.   Consent challenges are slowing some stormwater and flood protection projects.

3.6       Transport PMs are reporting delivery at 83% of budget ($115.5m, a small reduction of $1m compared to the March forecast).  CRAF and CERF watchlists and status summaries are being developed further and will be included in the report next month.  In the meantime, Draft templates are appended to the end of the current watchlists for information only.  Data updates to these Drafts are still required, and activities have moved on since the mock up was produced.  It is proposed these will be presented quarterly.

3.7       Parks, Digital and the Ōtākaro Avon River Corridor (OARC) programme are all reporting good progress against FY23 Budgets and some bring backs support the stronger delivery targets.

3.8       Resource constraints remain with tight competition in the employment market and infrastructure owners are often competing for the same resources.  This continues to be a risk for deliverability, despite early signals of net migration in recent months reaching positive territory for the first time since the pandemic. 

3.9       Global supply chains are reported as improving but domestically they remain challenging, partly from recent weather events (ref, EBOSS Q1 2023 Construction Supply Chain Update – this report focuses largely on residential and commercial markets but has similarities in horizontal infrastructure). 

3.10    Continued geopolitical instability remains a key risk and continues to have an impact on cost estimates through inflationary pressures across all areas of capital delivery.

3.11    The risk relating to repair programmes in response to damage created by Cyclone Gabrielle in February 2023 has, to date, had minimal impact on market capacity in Christchurch.  KiwiRail infrastructure has been seriously damaged by the cyclone, and impact on our Transport programme is possible. Further cyclone effects may still increase the severity of existing financial and resourcing risks in the capital programme.

3.12    While it is difficult to make accurate predictions as to the time period within which these broader issues outside of Council control will resolve, internal planning and risk mitigation is based on the assumption that a return to normal is not expected in the short term.  Recent economic forecasts and historical indicators continue to support cost pressures, albeit there are small signs of easing but it is not expected to be rapid.

3.13    The attached Capital Delivery Report – April 2023 details the above and provides further commentary across the Capital Programme.

 

Attachments / Ngā Tāpirihanga

No.

Title

Reference

Page

a

Capital Delivery Report - April 2023 - FINAL

23/767860

44

b

Capex Watchlist Report - April 2023 - FINAL

23/767851

81

 

 

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

Document Name – Location / File Link

Not applicable

 

 

 

 

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

Andrew Robinson - Head of Programme Management Office

Greer Hill - Administration Officer

Approved By

Mary Richardson - General Manager Citizens & Community

Lynn McClelland - Assistant Chief Executive Strategic Policy and Performance

 

 


Finance and Performance Committee

31 May 2023

 







































Finance and Performance Committee

31 May 2023

 














Finance and Performance Committee

31 May 2023

 

 

10.   2022-2023 Residents Survey Results

Reference / Te Tohutoro:

23/703568

Report of / Te Pou Matua:

Peter Ryan, Head of Corporate Planning and Performance; Kath Jamieson, Team Leader Monitoring and Research

General Manager / Pouwhakarae:

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

 

 

1.   Nature of Information Update and Report Origin

1.1       Provide 2022-2023 Residents Survey key results to Mayor and Councillors and actions the Council is taking to address resident feedback.

1.2       Annual Residents Survey reporting.

2.   Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1.         Receive the information in the 2022-2023 Residents Survey Report

 

3.   Brief Summary

3.1       The 2022-2023 Residents Survey results are being presented to Finance and Performance Committee following a Council briefing.

3.2       2022-2023 Residents Survey results are mixed but with some notable improvements compared to last year.

3.3       Three quarters (75% [30]) of services measured via the Residents Survey met their levels of service targets compared to 66% (25) last year.

3.4       More services improved their satisfaction scores by 1% or more (2023: 55% [22]; 2022: 23% [9]). 25% (10) improved by 4% or more (2022: 8% [3]).

3.5       Overall organisation performance has remained consistent on 43% (42% last year), while dissatisfaction has fallen from 29% last year to 24% in 2023.  The top reason for satisfaction was the same as last year: Council is doing a good job.  The top reasons for dissatisfaction were also the same as last year: roading and road maintenance and disapproval of Council spending.  Proportionally, the latter has been increasing as a reason for dissatisfaction in recent years (2023: 16%; 2019: 4%).

3.6       Reputation and trust measures were added to the Residents Survey this year.  Results reflect the challenges the organisation has in capturing the hearts and minds of residents.  The average positive score was 28%, with Council making wise spending decisions sitting at 15%.

3.7       Waste management, parks and libraries were identified again as the best performing services by residents.  Roads, Council decision making / financial management and water supply remain as the area’s most needing improvement, with financial management moving to second place this year from third last year.  Residents wish to see council prioritising core services over “nice to haves”.

3.8       In 2021-2022 ELT asked all Heads of Service with Residents Survey based Levels of Service to prepare response action plans that documented how they were intending to respond to Residents Survey results.  Implementation of Heads of Service response action plans occurs with support from the relevant General Managers.

3.9       Refreshing these action plans will form one part of the organisational response to the latest round of results.

3.10    Most important, Residents Survey results will be used to inform Annual Plan and LTP decision making.

 

Attachments Ngā Tāpirihanga

No.

Title

Reference

Page

a

Residents Survey 2022-2023 Key Findings Overview REFERENCE Report

23/809604

96

b

Residents Survey 2022-2023 Key Findings Overview SUMMARY Report

23/809606

166

c

General Service Satisfaction Survey Report 2023

23/809607

200

d

Point of Contact Surveys Report 2022-2023

23/809609

376

e

Summary of Point of Contact Levels of Service Results Table 2022-2023

23/809610

445

f

Summary of General Service Satisfaction Survey Levels of Service Results Table 2023

23/809611

448

g

Residents Survey Snapshot 2022-2023

23/809614

451

 

 

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

Document Name – Location / File Link

Not applicable

 

 

 

 

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

Kath Jamieson - Team Leader Monitoring and Research

Approved By

Peter Ryan - Head of Corporate Planning & Performance

Lynn McClelland - Assistant Chief Executive Strategic Policy and Performance

 

 


Finance and Performance Committee

31 May 2023

 








































































Finance and Performance Committee

31 May 2023

 




































Finance and Performance Committee

31 May 2023

 


















































































































































































Finance and Performance Committee

31 May 2023

 







































































Finance and Performance Committee

31 May 2023

 





Finance and Performance Committee

31 May 2023

 





Finance and Performance Committee

31 May 2023

 



Finance and Performance Committee

31 May 2023

 

 

11.   ChristchurchNZ Holdings Ltd - Quarter 3 performance

Reference / Te Tohutoro:

23/695422

Report of / Te Pou Matua:

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

General Manager / Pouwhakarae:

Leah Scales, General Manager Resources/Chief Financial Officer (Leah.Scales@ccc.govt.nz)

 

 

1.   Nature of Information Update and Report Origin

1.1       Review of CNZHL's progress on meeting its strategic objectives for over the three months 1 January to 31 March and year to date 1 July to 31 March 2022/23.

1.2       This report has been written following receiving CNZHL's Quarter 3 2022/23 performance report on 16 May 2023.

2.   Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1.         Receives ChristchurchNZ Holdings Ltd’s Quarter 3, 2022/23 performance report, for the period ending 31 March 2023.

 

3.   Brief Summary

3.1       CNZHL’s Quarter 3, 2022/23 performance report is at Attachment A.  It presents economic indicators that suggest the Christchurch economy is doing well relative to the national economy.  The latest Quarterly Economic Dashboard produced by CNZHL for the March 2023 quarter is at Quarterly Economic Dashboard - ChristchurchNZ.com.

3.2       The financial outcomes of the nine months 1 July 2022 to 31 March 2023 are shown in the table below (and are more detailed in CNZHL’s report):

 

Actual

$000

Budget

$000

Last year

$000

Total funding

18,703

18,540

19,399

Total expenditure

(18,060)

(19,126)

(13,999)

 

3.3       Against budget, total income is higher by $163,000 (0.8%) which is below the threshold for commenting on.  Total expenditure is lower by around $1 million (5.6%) which reflects activity and services not yet delivered and which will be delivered before year end. 

3.4       Against the same period last year, total income is lower by $0.7 million (3.6%) reflecting the reduction in government funding for COVID-19 tourism programmes throughout Canterbury.  Expenditure is higher by $4 million (29%) as a result of implementing the projects supported by council and government COVID-19 funding, such as SailGP in earlier years but deferred due to COVID-19.

3.5       CNZHL notes that work to quantify the economic gains to Christchurch of SailGP and the cruise season is underway.  It is expected to be completed in June or July and reported in CNZ’s Quarter 4 reporting due in August.  The economic assessment tool that CNZHL’s employs is not costless and therefore not all events and activities are assessed.  Two undertakings that would be useful to get a gauge on net benefit for Christchurch are the attraction of international students to Christchurch and holding the TRENZ expo.  Travel buyers attending TRENZ expo are responsible for generating business valued at over $1 billion per annum in international visitor spend in Christchurch (refer page 10 of CNZHL’s report).

3.6       Levels of Service (LOS) are on target to be achieved by year end, or have been already been achieved, with the exception of three (from 30).  The reasons for the under-performance are clear in CNZHL’s report:

·    the goal of 100 businesses in the Antarctic network will not be achieved largely due to funding constraints (note the Council provides tagged funding to CNZHL for the Antarctic Office, which was reduced in 2020/21); and

·    work on developing, consulting on and implementing the new place brand (narrative) for the city and destination management plans for Christchurch and Banks Peninsula has taken priority over developing and investing in products that are underpinned by the plans (as per the three LOS that are off target).  This minimises the risk of misalignment with the city’s future needs. 

3.7       As Long Term Plan 2024-34 planning approaches, CNZHL is looking to revise its levels of service to make them more outcomes-focussed and to reduce them to a more manageable set.  It will also be developing activity management plans to support funding allocations.

3.8       As the end of the financial year (30 June) approaches, CNZHL is expected to report on the net benefits of its interventions to the extent possible.

3.9       At the Finance and Performance Committee’s meeting on 26 April, a question was asked of CNZHL as to the provision of advice on the net benefits of housing developments.  CNZHL has advised that its Urban Development Team will build into post-project measurement the provision of housing types, specifically social and affordable housing developed for reporting. Note that the Urban Development Team currently does examine economic, social, cultural, environmental outcomes as part of decision-making to determine the pipeline of projects and will develop post-project measurement to understand the impacts of the projects on these outcomes.

 

Attachments Ngā Tāpirihanga

No.

Title

Reference

Page

a

ChristchurchNZ Holdings Ltd - Quarter 4 Performance Report

23/775726

456

 

 

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

Document Name – Location / File Link

Not applicable

 

 

 

 

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 - General Manager Resources/Chief Financial Officer

 

 


Finance and Performance Committee

31 May 2023

 


















Finance and Performance Committee

31 May 2023

 

 

12.   Christchurch City Holdings Ltd - Draft Statements of Intent 2023/24

Reference / Te Tohutoro:

23/462680

Report of / Te Pou Matua:

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

General Manager / Pouwhakarae:

Leah Scales, General Manager Resources/Chief Financial Officer (Leah.Scales@ccc.govt.nz)

 

 

1.   Nature of Decision or Issue and Report Origin

1.1       To review Christchurch City Holdings Ltd's (CCHL's) draft Statement of Intent (SOI) for 2023/24, and provide shareholder comments, if any to the CCHL board.

1.2       The report has been written following receiving the CCHL group's (the Group's) draft SOIs on 31 March 2023.

1.3       CCHL, as shareholder of the subsidiaries determines whether their draft SOIs are legally compliant and fit for purpose.  It provided its subsidiary companies with a one month extension for delivery of draft SOIs, pursuant to clause 4, part 1 of schedule 8 of the Local Government Act 2002 (LGA).  This was primarily due to uncertainty stemming from the timing of the strategic review reporting back which impacted the Group’s business planning.  The Group’s SOIs are expected to be finalised by 30 June in accordance with clause 1(2), part 1 of schedule 8 of the LGA.  

1.4       CCHL’s report on the Group’s draft SOIs, its draft SOI and the draft SOIs of each of its subsidiary companies is at Attachment A

1.5       CCHL’s draft SOI meets the LGA’s content requirements, as set out in parts 2-4 of schedule 8.  It also reflects the Council’s Enduring Statement of Expectations issued in 2021.  The Group has  not yet completed business planning, so all financial forecasts are indicative, based in large part on recently updated forecasts.  Furthermore CCHL is engaging with the subsidiaries to address material reductions in both net profit after tax (NPAT) and dividend payout targets.  Finalisation of the work required will be done in time for the financial forecasts to be updated if necessary in the final SOIs. 

1.6       The Council has recently appointed a new board, including Chair and Deputy Chair who are tasked with the implementation of the strategic review recommendations.  Investment reviews for each of the subsidiary companies are due to begin shortly.  The full suite of work required is on target to be concluded in mid-October. 

1.7       The future strategic direction of the Group will inform the Long Term Plan 2024-34 (LTP) and the Council’s three-yearly Letter of Expectations to the CCHL board.  Next year’s SOIs (for the three years beginning 1 July 2024) will record the Group’s revised or restated strategic undertakings, accountability settings and performance targets. 

1.8       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 recommendations might impact the community.

 

2.   Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1.         Receives the draft Statement of Intent for Christchurch City Holdings Ltd and the draft Statements of Intent for each of Christchurch City Holdings Ltd’s subsidiary companies – Orion NZ, Christchurch International Airport, Lyttelton Port Company, Enable Services, City Care, EcoCentral and the residual landholding companies RBL Property Ltd and Development Christchurch Ltd; and

2.         Provides the following comments to the Christchurch City Holdings Ltd board, pursuant to clause 2, part 1 of schedule 8 of the Local Government Act 2002:

a.         The Council strongly supports the board’s early intervention with the subsidiary companies to test the financial forecasts;

b.         The importance to the Council of being able to rely on forecasts of dividend distributions from Christchurch City Holdings Ltd and setting and meeting meaningful non-financial performance targets cannot be understated;

c.         The Council is strongly focussed on achieving carbon emission reductions and offsets to achieve net zero across its group of organisations by 2030 and to ensuring resilience to extreme events from climate change and extreme weather events; and

d.         Diversity on Council organisation boards is also a key focus of the Council.

 

3.   Reason for Report Recommendations Ngā Take mō te Whakatau

3.1       CCHL’s draft SOI for 2023/24 is legally compliant and reflects the Council’s expectations in its Enduring Statement of Expectations dated 20 December 2021, to the extent appropriate.

 

4.   Alternative Options Considered Ētahi atu Kōwhiringa

4.1       The only other option is to not provide feedback on CCHL’s draft SOI.

5.   Detail Te Whakamahuki

SOI financial projections

5.1       Graphs showing each of the CCHL subsidiaries’ NPAT actual results for the period 2019-2022 and SOI forecasts for 2023-2026 and the Group’s returns on assets and equity are at Annex 1.


 

5.2       The following table shows the changes in SOI financial forecasts between last year’s final SOI and this year’s draft SOI.

5.3       In 2023/24, NPAT forecasts have reduced by $12 million (12.8%) and in 2024/25 by $13 million (11.6%) reflecting economic pressures adding costs including higher interest rates and inflation and a tight labour market.  In some cases these additional costs can be passed onto customers, but this is dependent on contractual terms and conditions and the extent of competitiveness in the market.  For Orion, the DPP (regulatory default price path) prevents it from recouping unexpected costs until the end of the current price path in 2024/25. 

5.4       The 2025/26 profitability expectations reflect economic recovery, with an increase in NPAT of $9 million (8%) over the 2024/25 projection.  This lifts the return to shareholders from a forecast 3.5% in 2023/24 to 4.5% in 2025/26 (shown in Annex 1).  Note that the Group’s activities also provide a social return to the city, which cannot be readily quantified.

5.5       Dividends paid to CCHL from the subsidiaries have decreased materially over last year’s final SOI projections, by $21 million and $37 million in 2023/24 and 2024/25 respectively. 

5.6       CCHL is working closely with the subsidiaries to challenge them to find cost savings to offset the forecast profitability and dividend payout reductions, with any changes to be reflected in the final SOIs.

Non-financial performance targets

5.7       CCHL notes the various omissions in each of the subsidiaries’ draft SOIs with respect to commitments to non-financial strategic priorities including kaitiakitanga, mana, people and sustainability.  For the most part these omissions are not of actual commitments but rather that the commitments have not been sufficiently incorporated into the draft SOIs.   

5.8       These omissions are being addressed between CCHL and the subsidiaries.  CCHL has advised that it will be taking a centralised approach to implementing the impact framework across the group.  The framework includes sustainability (decarbonisation and adaption), workforce optimisation, gender balance and diversity and He Huanui Māori pathways.

5.9       CCHL’s advice on improvements required to each of its subsidiaries’ SOIs non-financial performance targets’ content is at Annex 2.

6.   Policy Framework Implications Ngā Hīraunga ā- Kaupapa here

Strategic Alignment Te Rautaki Tīaroaro

6.1       This report supports the Council's Long Term Plan (2021 - 2031).

Policy Consistency Te Whai Kaupapa here

6.2       The decisions in this report are consistent with Council’s Plans and Policies – in particular promoting good governance.

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 specifically impact Mana Whenua, their culture and traditions.

6.4       The decision does not involve a matter of interest to Mana Whenua and will not impact on our agreed partnership priorities with Ngā Papatipu Rūnanga.

Climate Change Impact Considerations Ngā Whai Whakaaro mā te Āhuarangi

6.5       The draft SOIs provide climate change undertakings of varying quality.  CCHL has advised that it is engaging with the subsidiaries to ensure the commitments sufficiently reflect the work that has been, or will be completed to support meaningful targets.

7.   Resource Implications Ngā Hīraunga Rauemi

Capex/Opex Ngā Utu Whakahaere

7.1       There are no costs arising from the draft SOI.

8.   Legal Implications Ngā Hīraunga ā-Ture

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

8.1       LGA – in particular, section 64 (SOIs for CCOs), Part 1, Schedule 8 (Adoption of SOI) and Parts 2 and 3 of Schedule 8 (Content of SOIs for all CCOs and Additional Content of SOIs for CCOs that are trading CCOs).

Other Legal Implications Ētahi atu Hīraunga-ā-Ture

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

9.   Risk Management Implications Ngā Hīraunga Tūraru

9.1       Good governance minimises shareholder risks for the Council.

 

 

Attachments Ngā Tāpirihanga

No.

Title

Reference

Page

a

Christchurch City Holdings Ltd Group draft Statements of Intent for 2023/24

23/751597

480

 

 

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

Document Name – Location / File Link

Not applicable

 

 

 

 

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 - General Manager Resources/Chief Financial Officer

 


 

Annex 1

Financial performance graphs

The following graph presents NPAT for 2018-2022, and SOI forecast NPAT for 2023-2026.  Note that:

·    Value uplift on land and other assets is included in the actual results 2018-2022, but is not provided for in the SOI forecasts as there is little if any certainty of what they may be at year end.  Since 2018, value uplift before tax has totalled $190 million of which 91% is attributable to CIAL. 

·    In 2020 Lyttleton Port made a one-off non-cash fair value adjustment to the value of the Port, of $190 million, leading to an overall loss of $153 million after tax.  The graph shows the loss at $0.

·    The majority of the Group gets back to pre COVID-19 NPAT levels by 2024, with Enable and City Care having reached this already and CIAL expected to do so in 2026.  Orion has been on a downward trajectory since the Commerce Commission’s default price path was imposed in 2020.  Its NPAT has also been adversely impacted by higher interest rates and higher depreciation charges following asset value appreciation in 2021/22.

A picture containing line, text, plot, screenshot

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The following graph shows the forecast returns for the SOI period.

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Description automatically generated

 


Annex 2

 

 

CCHL feedback to subsidiaries on non-financial performance targets

 

 

Orion:

Focus areas include decarbonisation, creating the preferred workplace, having a fit for purpose capital structure and sustainable investments whilst providing equitable returns to shareholders

Key feedback - review the dividend policy, include Treaty obligations in their final SOI and to request an increase in pace to address the gender pay equity gap

Christchurch International Airport Ltd:

Focus areas include finding and filling planes, property portfolio growth, continuing to lead international initiatives around climate change, and continuing to be a world leader in airport decarbonisation

Key feedback - include transition to integrated reporting in their final SOI and in relation to Central Otago Airport – alignment with all stakeholders to improve communication and engagement with Shareholder

Lyttelton Port Company:

Focus areas include sustainable financial performance and delivering prosperity to the region, creating quality employment opportunities and building and growing a diverse and inclusive workforce, and protecting the natural environment with special responsibility for the ecological restoration of the harbour environment.

Key feedback - sustainability and LPC’s assumptions around Coal as an important business and revenue driver and how this is consistent with Parent and Shareholder expectations around sustainability

Enable Services:

Focus areas include delivering greater shareholder and community value, gender equality innovation, and climate action

Key feedback - complete an emissions reduction plan and provide a clear strategy to deliver steady network operations now that development of the fibre network has been completed

Citycare:

Focus areas include Three Waters Reform, growth opportunities in property, water quality, biodiversity, and regenerative planting, and health, safety and wellbeing

Key feedback - include the transition to integrated reporting and to correct the variations between forecast and draft SOI numbers

EcoCentral:

Focus areas include investment in new technology, carbon footprint reduction, public education, and support of Central Government waste initiatives

Key feedback - include transition to integrated reporting, emissions reduction plan and climate related disclosures

 


Finance and Performance Committee

31 May 2023

 



































































































































































































Finance and Performance Committee

31 May 2023

 

 

13.   Civic Financial Services - Annual General Meeting and Annual Report for 2021/22

Reference / Te Tohutoro:

23/761243

Report of / Te Pou Matua:

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

Senior Manager / Pouwhakarae:

Leah Scales, General Manager Resources/Chief Financial Officer (Leah.Scales@ccc.govt.nz)

 

 

1.   Nature of Decision or Issue and Report Origin

1.1       In order to vote at Civic Financial Services' (Civic's) Annual General Meeting (AGM) on 16 June 2023, the Council is required to appoint a proxy to cast the Council's shareholder votes, and to provide voting instructions.

1.2       This report has been written following receipt of the AGM papers and Annual Report for 2022 from Civic on 16 May 2023.

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 impact the decisions may have on the community.

1.4       The AGM Notice of Meeting is at Attachment A, the Annual Report for 2022 is at Attachment B and the minutes of the 2021 AGM are at Attachment C

1.5       Civic requires the completed Notice of Proxy and voting instructions by 2pm on 15 June 2023.

 

2.   Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1.         Appoints the Chair of the Civic Financial Services Annual General Meeting as proxy to vote on behalf of the Christchurch City Council at the Civic Financial Services Annual General Meeting in Wellington on 16 May 2023;

2.         Agrees that the Council votes in favour of receiving the Annual Report for the year ending 31 December 2022 and recording the appointment and remuneration of the Auditor-General as auditor.

 

3.   Reason for Report Recommendations Ngā Take mō te Whakatau

3.1       To enable the Council to vote at Civic’s 2023 AGM.

 

4.   Alternative Options Considered Ētahi atu Kōwhiringa

4.1       The only other option is to not vote at the AGM which is inconsistent with good practice governance.

5.   Detail Te Whakamahuki

5.1       The Council has a 12.6% ownership stake in Civic.  There are 73 other local authority shareholders. 

5.2       Civic’s main business is the administration of superannuation schemes for local government employees of which investment funds total around $0.5 billion.  These funds are managed by investment specialists. 

5.3       Civic is not a Council-controlled organisation (CCO).  It is exempted under section 6(4)(f) of the Local Government Act 2002 (LGA) due to its previous insurance activities that brought it under the Municipal Insurance Act 1960 (now repealed). 

AGM

5.4       Civic’s Notice of Meeting for its 2023 AGM includes standard AGM business – approving the minutes of last year’s AGM, receiving the annual report for the year ending 31 December 2022, confirming the appointment of directors and director remuneration and recording the appointment and remuneration of the Auditor-General as auditor. 

5.5       There are no major issues associated with the agenda items, and therefore Council staff consider in-person attendance is not warranted.  This being the case, it is proposed that the Council appoints the Chair of the AGM as its proxy for voting purposes.

5.6       Shareholder voting is required for only two of the agenda items:

Item 3 – to receive the annual report and financial statements for the year ended 31 December 2022 (discussed below); and

Item 6 – to record the appointment of the Auditor-General as auditor, and to authorise the directors to determine the remuneration for the auditor for the year.

5.7       There are other agenda items that do not require a shareholder vote but are for noting:

·    appointment of two new directors who have been elected to replace two retiring directors (one of which is the Chair); and

·    Civic’s directors have declined an increase in remuneration equal to the consumer price index (cira 6.7%) instead adjusting it by the lower value labour cost index (around 4.3%).

Annual Report

 

Actual

2022

$000

SOI target[1]

2022

$000

Prior year

2021

$000

Total revenue

3,171

3,239

3,218

Total Expenditure

3,029

2,995

2,716

Surplus before tax

142

244

502

Superannuation funds under management

496,000

Not projected

530,000

5.8       Civic’s performance for the year against its Statement of Intent (SOI) forecasts and the prior year is shown in the following table:

 

 

 

 

 

5.9       The auditors increased their charges last year (2022) hence the increase from $134k to $153k from 2021.  In 2020 we used the same company for tax consultancy work which was included as part of the “Total Fees Paid to the Auditors”.  The tax consultancy component made up $37k of the $192k.  We now use a different company for tax consultancy.

5.10    The variance of note is expenditure compared with the prior year which has increased by around $300,000 (11.5%).  Civic has advised this is largely a reflection of increases in compliance costs from a more than doubling of Civic’s financial markets’ levy, consultant use due to a website redevelopment, remuneration costs from the engagement of an extra staff member and training and increased auditor charges.

5.11    Funds under management are $34 million lower than last year at $496 million (2021: $530 million) as a result of investment market losses over the year.  This has reduced the superannuation administration fees that Civic receives.

Non-financial performance targets

5.12    The SOI records two performance targets as follows:

·    to provide superannuation services to at least 90% of local authorities; and

·    to continue to be an efficient and effective administration manager for LAPP, Riskpool, CLP and CPP.

5.13    Civic does not report its performance against the SOI non-financial targets in the Annual Report.  If it was a CCO it would be required to report against the targets.  Staff consider the most important measure of success is performance against the market (shown below).  This matter has been raised with Civic previously but it has declined to include a target in its SOI.

5.14    The chart below shows Civic’s returns on its major superannuation investor fund - Automatic Fund (Age 40).  This Fund adjusts risk exposure from growth to income assets as members get older.  The chart compares the Fund’s after-tax and fees 2022 return, five year average return and fees[2] compared with the market.

5.15    Note that from 1 April 2020 Civic reduced the fees it charges to its investors, which is funded by local authority shareholders, rather than through offsetting cost reductions.   

6.   Policy Framework Implications Ngā Hīraunga ā- Kaupapa here

Strategic AlignmentTe Rautaki Tīaroaro

6.1       This report is consistent with the Council’s commitment to good governance of its CCOs.  This is aligned to the efficient delivery of the outcomes sought by the Council's Long Term Plan (2021 - 2031).

6.2       This report does not support the Council's Long Term Plan (2021 - 2031).

Policy Consistency Te Whai Kaupapa here

6.3       There is no specific Council policy relating to voting at AGMs.

Impact on Mana Whenua Ngā Whai Take Mana Whenua

6.4       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.

6.5       The decision does not involve a matter of interest to Mana Whenua and will not impact on our agreed partnership priorities with Ngā Papatipu Rūnanga.

Climate Change Impact Considerations Ngā Whai Whakaaro mā te Āhuarangi

6.6       Not relevant to this report.

Accessibility Considerations Ngā Whai Whakaaro mā te Hunga Hauā

6.7       Not relevant to this report.

7.   Resource Implications Ngā Hīraunga Rauemi

Capex/Opex Ngā Utu Whakahaere

7.1       There are no costs associated with this report.

8.   Legal Implications Ngā Hīraunga ā-Ture

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

8.1       LGA.

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       Not relevant to this report.

 

 

Attachments Ngā Tāpirihanga

No.

Title

Reference

Page

a

Civic Financial Services - AGM 2022 Agenda

23/768566

678

b

Civic Financial Services - Annual Report 2022

23/768568

682

c

Civic Financial Services - Minutes of AGM 2021

23/768571

718

 

 

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

Document Name – Location / File Link

Not applicable

 

 

 

 

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 - General Manager Resources/Chief Financial Officer

 

 


Finance and Performance Committee

31 May 2023

 






Finance and Performance Committee

31 May 2023

 






































Finance and Performance Committee

31 May 2023

 





Finance and Performance Committee

31 May 2023

 

 

14.   Request to drawdown funds for Major Cycleway Route (MCR) Rapanui Shagrock, Section 3

Reference / Te Tohutoro:

23/451819

Report of / Te Pou Matua:

Adrian Thein, Project Manager, adrian.thein@ccc.govt.nz

General Manager / Pouwhakarae:

Mary Richardson, General Manager Citizens & Community (Mary.Richardson@ccc.govt.nz)

 

 

1.   Nature of Decision or Issue and Report Origin

1.1       The purpose of this report is to request a drawdown of additional funds for Major Cycleway – Rapanui Shagrock Section 3 from the contingency held at a programme level.

1.2       As part of the overall MCR Programme of works, Major Cycleway – Rapanui Shagrock Section 3 is the last section of the overall route from the city to Ferrymead Bridge and is one of the projects approved for Shovel Ready funding.

1.3       The decision in this report is of low significance in relation to the Christchurch City Council’s Significance and Engagement Policy.  The level of significance was determined by Significance Assessment Worksheet. The reason for it being low is that the decision relates to funding rather than the works itself, which have already been consulted on.

 

2.   Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1.         Approve the drawdown of programme funds to #23080 Major Cycleway – Rapanui Shagrock Section 3, from the following: 

a.         $399,863 from #1980 Programme – Major Cycleway – Rapanui-Shagrock

 

3.   Reason for Report Recommendations Ngā Take mō te Whakatau

3.1       The purpose of this report is to seek approval for the additional budget from programme contingency funds to allow for contractual commitments to be made and the delivery of the project under “shovel ready” requirements.

3.2       The Shovel Ready agreement requires Council to put aside a programme level contingency to account for any unforeseen variations during the construction phase. At the time of the Shovel ready funding applications this project was at the detail design phase and construction tenders not yet received.

3.3      Since the project was put out to tender there have been a number of things that have happened to increase the cost above the accepted tendered price, such as: unknown ground conditions, 3rd party services providers’ scope and confirmation of service relocation requirements.

 

4.   Reason for the cost increase

4.1       Additional costs due to higher volumes of contaminated material than expected. While investigations and pot holing was completed prior to tender the actual volumes during the construction phase were higher than anticipated, as higher volumes of contaminated material was removed due to soft ground conditions along the estuary edges and Linwood Canal.

4.2       Street Lighting and Power Trenching.

4.2.1   Additional cabling and electrical works relating to the traffic signals.  Orion (electrical network operator) specified a different power source which requires a longer cable connection. The change in power source location was confirmed at detail design phase, once further design work had been completed and a voltage drop that exceeded the design threshold had been discovered.

4.3       Extension of time costs:

4.3.1   Poor ground/weather conditions resulting in additional works and time associated with stormwater lines and works on the seawall.

4.3.2   Liaison with the contractor for the shower and drinking fountain water line connection. Legislative requirements mandate the use of specific contractors for new potable water connections, but there were programme and resource coordination issues between them and the cycleway contractor.

4.4       The overall totals of the variations outlined above is $399,000.

5.   Alternative Options Considered Ētahi atu Kōwhiringa

5.1       Construction works have been completed and additional sums are payable under the contract, therefore there are no other options available. Contingency has been set aside specifically for the Rapanui MCR project, and this is to draw down this sum.

6.   Detail Te Whakamahuki

6.1       This forms a part of the Christchurch Major Cycleway Programme – a network of 13 cycleways to provide safe and connected cycling links around the city. Rapanui-Shag Rock provides a link from the Central City to Linwood and Ferrymead. It also links to the Coastal Pathway (to Moncks Bay and Sumner), and will eventually connect to the Ōpāwaho River Route (to Opawa, Beckenham, and Cashmere).

6.2       Section 3 (Linwood Canal to Ferrymead Bridge) is the last section of this to be completed. Sections 1 and 2 – from the Central City to Dyers Road – has been completed progressively since 2016.

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

6.3.1   Waikura Linwood Central Heathcote Community Board.

7.   Policy Framework Implications Ngā Hīraunga ā- Kaupapa here

Strategic AlignmentTe Rautaki Tīaroaro

7.1       Decision relates to construction of a section of the Major Cycleway Network. This will increase the safety of cyclists promoting a greater use of cycling which aligns with accelerating the momentum for the City’s need for safe active transport options.

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

7.2.1   Activity: Transport

·     Level of Service: 10.5.39 Increase the numbers of people cycling into the central city - >=1,900 cyclists

Policy Consistency Te Whai Kaupapa here

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

Impact on Mana Whenua Ngā Whai Take Mana Whenua

7.4       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.

Climate Change Impact Considerations Ngā Whai Whakaaro mā te Āhuarangi

7.5       The cycleway aligns with promoting active travel through a safer cycling network providing an alternative means of transport that will result in reduced carbon emissions

Accessibility Considerations Ngā Whai Whakaaro mā te Hunga Hauā

7.6       The cycleway will encourage less confident cyclists to use the cycle network providing a safer and more desirable cycling alternative

8.   Resource Implications Ngā Hīraunga Rauemi

Capex/Opex Ngā Utu Whakahaere

8.1       Cost to Implement - $9,355,498 which include the contingency value of $399,863

8.2       Maintenance/Ongoing costs - no change from previous project approval.

8.3       Funding Source - # 1980 Programme – Major Cycleway – Rapanui Shagrock $399,863 and # 23080 $8,955,635

9.   Legal Implications Ngā Hīraunga ā-Ture

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

9.1       The Finance and Performance Committee has authority to approve the drawdown of funds

Other Legal Implications Ētahi atu Hīraunga-ā-Ture

9.2       The implication relevant to this decision is related to Council obligations to the monies already received from the Crown under the Shovel Ready funding and

10. Risk Management Implications Ngā Hīraunga Tūraru

10.1    If not approved the contractual payment commitments cannot be met.

10.2    If the change request is not approved, CCC cannot meet the Shovel Ready requirements from the Crown and may require to payback the pre-approved funding.

 

 

Attachments Ngā Tāpirihanga

No.

Title

Reference

Page

a

Notice to Contractor 68

23/541318

725

b

Notice to Contractor 60

23/541319

728

 

 

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

Document Name – Location / File Link

Not applicable

 

 

 

 

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

Adrian Thein - Project Manager

Sharon O'Neill - Programme Manager

Approved By

Jacob Bradbury - Manager Planning & Delivery Transport

Lynette Ellis - Head of Transport & Waste Management

Mary Richardson - General Manager Citizens & Community

 

 


Finance and Performance Committee

31 May 2023

 





Finance and Performance Committee

31 May 2023

 



Finance and Performance Committee

31 May 2023

 

 

15.   Shovel Ready Funding Shortfall - Major Cycleway Routes

Reference / Te Tohutoro:

23/489431

Report of / Te Pou Matua:

Jacob Bradbury, Manager Planning and Delivery Transport, Jacob.Bradbury@ccc.govt.nz

General Manager / Pouwhakarae:

Mary Richardson, General Manager Citizens & Community (Mary.Richardson@ccc.govt.nz)

 

 

1.   Nature of Decision or Issue and Report Origin

1.1       This report is to update the Committee on the latest status of the Shovel Ready funded projects and seeks a decision regarding extra funding to complete the projects.

1.2       This report is staff generated. Elected members were briefed on the 16th May 2023 providing background information to assist with making a decision.

1.3       The decision in this report is of high significance in relation to the Christchurch City Council’s Significance and Engagement Policy.  The level of significance was determined as high due to the additional amount of funding required in order to complete the projects, and the potential implications relating to the Shovel Ready Agreement with Rau Paenga.

1.4       The projects affected are:

1.4.1   Major Cycleway - South Express Route

1.4.2   Major Cycleway – Nor’West Arc Route

1.4.3   Major Cycleway – Northern Line

1.4.4   Major Cycleway – Heathcote Expressway

 

2.   Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1.         Notes that the costs of the four MCR projects have increased significantly for the reasons outlined in the report.

2.         Supports staff to find a way forward in relation to the KiwiRail component of the projects, in order to gain cost and delivery certainty.

3.         Approves that staff commence discussions with Rau Paenga and Waka Kotahi regarding funding and delivery.

4.         Considers the additional funding required (currently estimated to be $25 Million) to complete the routes as part of the Long Term Plan, once more certainty about final costs can be provided.

 

 

3.   Reason for Report Recommendations Ngā Take mō te Whakatau

3.1       Across the Shovel Ready programme a number of projects are forecasting significant budget shortfalls.  This report outlines the projects affected and options considered.

3.2       Specific details for the four Major Cycleway Routes referenced in this report are attached

3.3       Shovel Ready applications were called for in April 2020 during the first Covid lockdown, with authorities being given an extremely tight time frame for submissions. Shovel Ready submissions were made based on the best information to hand at the time, and were often based on current budgets in the Long Term Plan, without scheme and detailed designs having been completed. There was no time available for risk assessments to be completed and with staff working from home for the first time access to detailed information was limited.

3.4       The key Shovel Ready criteria at the time was that projects had to be at a stage where they could have ’a shovel in the ground’ within six months. As part of the approval Council was required to hold contingency funding to cover overspends. On a number of projects this contingency has been drawn down.

3.5       As part of the Shovel Ready agreement the following conditions were agreed.

3.5.1   Rau Paenga (formally known as Ōtākaro Limited) may suspend funding immediately on becoming aware that:

·   The recipient is unable to fund the estimated costs that exceed the Total Maximum Amount Payable

·   there has been a material change to the scope that has not been agreed

3.5.2   CCC must notify Rau Paenga immediately if it becomes aware of any circumstances where co-funding (or part of) is not secured and available to be applied to the project.

3.5.3   CCC must deliver the project as agreed without any material reduction to the scope without written prior consent of Rau Paenga, or make any material increase without satisfying Rau Paenga it can be funded.

3.5.4   Any and all cost overruns and funding shortfalls are Council’s to fund and it is acknowledged that Rau Paenga and NZ Govt have no obligations or responsibilities to fund.

3.5.5   If Rau Paenga have reasonable grounds for concern over our ability to deliver a project – including material changes to scope they can contract the necessary expertise and on charge that to CCC.

3.5.6   Rau Paenga can terminate the agreement for a number of reasons – the main one that affects CCC is where CCC fail to meet a project deadline by the applicable date and CCC don’t rectify.

3.6       Global events, such as the COVID-19 pandemic and the war in Ukraine, have had a significant impact on projects planned or in construction since the funding agreement in 2020. Restrictions on movement of goods, supply chain disruptions, and global fuel price increases have caused delays in construction schedules, leading to cost overruns and budget uncertainties.

3.6.1   Between 2020 and 2023, the Consumer Price Index states there has been nearly 19% increase in costs, and more industry focused indexes (such as those produced by Business & Economic Research) produce very similar numbers.

3.6.2   Council’s typical inflation calculation for the current LTP (circa 2.4%/yr) would anticipate around 7% increase in the same time period.

3.7       Since the projects base estimates were established a number of other factors have driven increased costs. These include KiwiRail interfaces, project delays, contaminated material discovery and increased infrastructure renewals due to poor conditions.

3.8       The majority of Shovel Ready projects have interaction with KiwiRail infrastructure. At the time of signing up the agreement Council had limited recent experience with delivering cycle facilities alongside or crossing KiwiRail infrastructure. Timeframes and costs of the KiwiRail works were based on the information provided by KiwiRail at the time and have proved to be significantly short of actual costs incurred.

3.9       Additional funding request amounts:

3.9.1   No additional funding is asked for in the FY24 Annual Plan. Budget is available for works on all projects to advance during FY24.

3.9.2   All remaining works on the routes are currently being reviewed by an independent quantity surveyor to gain more confidence in the amounts required to complete the routes. Project teams have worked through current estimates and associated risk assessments to gain as much certainty as possible regarding the amounts required to complete each of the routes. 

3.9.3   The figures below are the current forecast budget shortfalls for each of the four routes.

·   Major Cycleway - South Express - $6.7 Million

·   Major Cycleway – Nor’West Arc - $6.0 million

·   Major Cycleway – Northern Line - $10.3 Million

·   Major Cycleway - Heathcote Expressway - $2.0 Million

3.9.4   The total additional funding required across the four MCR’s based on current cost estimates is $25 Million.

 

4.   Alternative Options Considered Ētahi atu Kōwhiringa

4.1       Additional funding as part of the Annual Plan process

4.1.1   This option is not recommended due to the lack of confidence in current forecast costs to complete. All routes have funding to allow some works to continue in the current financial year. All remaining works on the routes are currently being reviewed by an independent quantity surveyor to gain more confidence in the amounts required to complete the routes.

4.1.2   For three of the routes the cost forecast for the KiwiRail component of the works has increased significantly and there is currently low confidence in the estimates currently to hand, these costs will also be reviewed by the quantity surveyor.

4.1.3   This approach would be in accordance with the terms of the funding agreement.

4.2       Cancel remaining works once existing budgets are exhausted.

4.2.1   This option is not recommended at the current time as it will leave gaps in the Major Cycleways network which is intended to create the major arterial spines for the city’s future cycling facilities.

4.2.2   This option could be pursued in future once the results of the quantity surveyors cost estimate review work described in 3.9.2 has been received and considered.

4.2.3   This option would require discussion with Rau Paenga regarding the conditions of the Shovel Ready funding agreement that Council entered into.

 

5.   Detail Te Whakamahuki

5.1       A description of each projects circumstances is included below. The risks covering all projects at a programme level include:

5.1.1   An expectation by the community that these projects will be constructed as all projects have been consulted on and the designs approved by Council for delivery.

5.1.2   There are certain conditions under the Funding Agreement with Rau Paenga that will need to be addressed with them, as described in Section 3.5 above.

5.1.3   The costs of the KiwiRail component of these projects has increased significantly throughout the life of the project and it is very difficult to get any certainty around final expected costs.  Delays continue to occur with KiwiRail delivery adding to project costs through resource time costs and inflation.

5.1.4   Noting that the cost estimates contain an element of risk in that tendered prices may be higher than estimated.

5.2       South Express Major Cycle Route is forecasting a shortfall of $6,700,000.

5.2.1   Attachment A includes a breakdown of the additional funding requested, works completed and uncompleted, additional funding and other information.

5.2.2   The remaining existing budget for Section 1 is expected to cover works along Kyle Park and adjacent to the Halswell Junction Road Extension project, and line marking at the intersection of Waterloo and Islington Roads.

5.2.3   Future additional funding is expected to be required for the works along Waterloo Road from Barters Road to Jones Road and the intersection of Gilberthorpes/Parker/Waterloo/Moffett. The later of these works involves engagement with KiwiRail with whom costs remain uncertain.

5.2.4   Utilising existing funding, Section 1 construction contracts yet to be tendered will be awarded as existing funding allows:

·     Waterloo Road along Kyle Park.

·     Waterloo Road west from Barters Road to Kirk Road.

·     Railway Terrace from Kirk Road and Jones Road to connect with Selwyn District Council’s cycleway to Rolleston.

·     The Gilberthorpes/Waterloo/Parker/Moffet intersection, including the upgrade of a level crossing by KiwiRail. The cost and scheduling of this work is highly dependent on KiwiRail.

5.2.5   That portion of the cycleway that passes adjacent to the new Halswell Junction Road Extension project will be completed under stage 2 of the Halswell Junction Road Extension project, funded from this MCR project.

5.3       Major Cycleway – Nor’West Arc is forecasting a shortfall of $6 million

5.3.1   Attachment B includes a breakdown of the additional funding requested, works completed and uncompleted, additional funding and other information.

5.3.2   Current funding is expected to enable construction to continue on Section 3 from the University to just north of Wairakei Road.

5.3.3   Additional future funding estimated to be $5,942,595 would be required to complete the section from Wairakei Road to Harewood Road.

5.3.4   Once Section 3 is completed the remaining portion of the Nor’West Arc to be completed is an 800m section of Annex Rd from Wigram Road to Blenheim Road and includes a rail crossing. This section of the cycleway is in the design phase. Council are currently working with KiwiRail on a design solution for the rail crossing, and any additional funding required for this section would come back to Council at a later date.

5.4       Major Cycleway – Northern Line is forecasting a shortfall of $10.3 million

5.4.1   Attachment C includes a breakdown of the additional funding requested, works completed and uncompleted, additional funding and other information.

5.4.2   Current funding is expected to enable construction to continue and be completed on the works alongside the railway in Section 2 between Tuckers Road and Main North Rd.

5.4.3   Updated cost estimates for the works have not been received from KiwiRail, and given the increases in KiwiRail components for other MCR’s there is significant uncertainty over the final costs associated with their infrastructure on this route. This impacts:

·     Level crossing upgrades at Sawyers Arms Rd, Langdons Rd, Harewood Rd, Kilmarnock Street, Riccarton Rd and Old Blenheim Rd. These are provisionally planned for November 2023

·     The intersections related to Section 2, at Tuckers Rd, Sturrocks Rd and Barnes Rd. These were planned for June 2023, but have recently been cancelled by KiwiRail. Council currently do not have any indication of when these will be re-scheduled.

5.4.4   An additional $10.32 Million funding is forecast on current information to complete the entire Northern Line project. This is based on recent estimates for other KiwiRail works, and is not based on an estimate from KiwiRail, so there remains risk against this. Attachment C has more detail.

5.4.5   Please note due to the uncertainty of KiwiRail pricing and programme, and dependency of this project on the KiwiRail interface, there remains a high risk that costs and timeframes could change.

5.5       Major Cycleway – Heathcote Expressway is forecasting a shortfall of $2 million.

5.5.1   Attachment D includes a detailed breakdown of the additional funding requested, works completed and uncompleted, additional funding and other information.

5.5.2   No additional funding is required for FY24.  Current funding allows completion of the current contracts and completing the route, with the exception of the KiwiRail crossing at Scruttons Road.

5.5.3   The completion of the KiwiRail crossing at Scruttons Road requires an additional funding of $2,000,000. This is based on a recent estimate from KiwiRail, plus a contingency allowance.

  

6.   Policy Framework Implications Ngā Hīraunga ā- Kaupapa here

Strategic AlignmentTe Rautaki Tīaroaro

6.1       Decision relates to completing construction of four MCR’s. This will increase the safety of cyclists and pedestrians, promoting a greater use of cycling and walking which aligns with accelerating the momentum for the City’s need for safe active transport options.

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

6.2.1   Activity: Transport

·     Level of Service: 10.0.41 Reduce emissions and greenhouse gases related to transport - <=1.10 million tonnes of CO2 equivalents

·     Level of Service: 10.5.2 Improve the perception that Christchurch is a cycling friendly city - ≥65% resident satisfaction

·     Level of Service: 10.0.2 Increase the share of non-car modes in daily trips - ≥17% of trips undertaken by non-car modes

Policy Consistency Te Whai Kaupapa here

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

6.3.1   This facility supports the local cycleway connections, slow streets, and shared paths that connect communities to the major network. It aims to foster connected and healthier communities, promote mode shift to active transport and reduce emissions to make our city more accessible

Impact on Mana Whenua Ngā Whai Take Mana Whenua

6.4       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.

6.5       The decision sought is relating to budget, not project detail. Mana Whenua were consulted early in the projects and have been involved during the various stages.

6.6       The decision does not involve a matter of interest to Mana Whenua and will not impact on our agreed partnership priorities with Ngā Papatipu Rūnanga

Climate Change Impact Considerations Ngā Whai Whakaaro mā te Āhuarangi

6.7       The option proposed promotes completion of the Shovel Ready Funded Projects and aligns with promoting active travel through a more direct network with better cycle and pedestrian facilities contributing to reduced carbon emissions.

Accessibility Considerations Ngā Whai Whakaaro mā te Hunga Hauā

6.8       The cycleway will encourage less confident cyclists to use the cycle network and better serve the cyclists currently using these routes.

 

7.   Resource Implications Ngā Hīraunga Rauemi

Capex/Opex Ngā Utu Whakahaere

7.1       Cost to Implement

Project Name

Existing Project Budget

Existing Programme Contingency Remaining

Spend to Date

Estimated cost to Complete

Forecast Shortfall

Total Budget Required

Major Cycleway  South Express – Section 1

$9,376,551

Nil

$3,564,984

$12,512,069

$6,700,502

$16,077,053

Major Cycleway Nor’west Arc  - Section 3

$16,537,466

$1,999,909

$2,318,516

$22,161,454

$5,942,595

$24,479,970

Major Cycleway  Northern Line - Sections 1 and 2

$22,187,729

$2,149,924

$8,879,211

$25,774,953

$10,316,511

$34,654,164

Major Cycleway Heathcote Expressway - Section 2

$15,255,117

Nil

$8,030,817

$9,224,300

$2,000,000

$17,255,117

TOTAL

$63,356,863

$4,149,833

$22,793,528

$69,672,776

$24,959,608

$92,466,304

 

7.2       Maintenance/Ongoing costs – There is no change to the approved schemes.

7.3       Funding Source – Provision of additional funding to be considered as part of the Long Term Plan process.

Other He mea anō

7.4       Not applicable.

8.   Legal Implications Ngā Hīraunga ā-Ture

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

8.1       Council has authority to approve the additional funds allowing the project to continue.

Other Legal Implications Ētahi atu Hīraunga-ā-Ture

8.2       If additional funding is not provided there are legal implications relating to the Rau Paenga agreement as outlined in Section 3.5.

 

9.   Risk Management Implications Ngā Hīraunga Tūraru

9.1       If additional funding is not provided there are legal implications relating to the Rau Paenga agreement as outlined in Section 3.5

9.2       There is a risk if the routes are not completed that there will remain gaps in the major arterials of the cycle network. As we have a significant KiwiRail interface these gaps may mean leaving unaddressed, or creating additional, safety hazards at level crossings.

 

 

Attachments Ngā Tāpirihanga

No.

Title

Reference

Page

a

Attachment A - South Express Project Details

23/779197

737

b

Attachment B - Nor'West Arc Project Details

23/782138

738

c

Attachment C - Northern Line Project Details

23/798780

739

d

Attachment D - Heathcote Expressway Project Details

23/779201

740

 

 

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

Document Name – Location / File Link

Not applicable

 

 

 

 

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

Jacob Bradbury - Manager Planning & Delivery Transport

Sharon O'Neill - Programme Manager

Luke Thomas - Project Manager

Natasha Wells - Project Manager

Pana Togiaso - Project Manager

Matt Goldring - Project Manager

Approved By

Jacob Bradbury - Manager Planning & Delivery Transport

Tony Richardson - Finance Business Partner

Mary Richardson - General Manager Citizens & Community

 

 


Finance and Performance Committee

31 May 2023

 



Finance and Performance Committee

31 May 2023

 



Finance and Performance Committee

31 May 2023

 



Finance and Performance Committee

31 May 2023

 


 

 

 


Finance and Performance Committee

31 May 2023

 

 

16.   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

31 May 2023

 

 

 

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

17.

Public Excluded Finance and Performance Committee Minutes - 26 April 2023

 

 

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

 

18.

Shovel ready Funding Shortfall - Part 2

s7(2)(h)

Commercial Activities

This report contains commercially sensitive information relating the a live construction contract.

This report can be released to the public on the approval of the Head of Legal and Democratic Services.

 


Finance and Performance Committee

31 May 2023

 

Karakia Whakamutunga

Kia whakairia te tapu

Kia wātea ai te ara

Kia turuki whakataha ai

Kia turuki whakataha ai

Haumi e. Hui e. Tāiki e

 

 

 



[1] The SOI presents forecasts of superannuation revenue that is net of costs whereas the Annual Report presents gross revenue and expenses.  The SOI forecasts have been adjusted to reduce total revenue by the administration costs of $694,000,  have been taken out in the above table to ensure performance is compared on an equal footing.

[2] Compare KiwiSaver and managed funds · Sorted Smart Investor – Compare, invest, get ahead.