Minutes of Finance and Performance Committee

Finance and Performance Committee

31 May 2023

Part A Matters Requiring a Council Decision

Part B Reports for Information

Part C Decisions Under Delegation

Karakia Tīmatanga: Given by all Councillors

The agenda was dealt with in the following order.

1. Apologies Ngā Whakapāha

Part C

Committee Resolved FPCO/2023/00033

That the apologies for lateness received from Councillors Gough and McLellan be accepted.

Councillor MacDonald/Councillor Coker Carried

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 Item.

Councillors MacDonald and Templeton declared an interest in Item 12 and took no part in the debate or voting on this Item.

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

Part C

Committee Resolved FPCO/2023/00034

That the minutes of the Finance and Performance Committee meeting held on Wednesday, 26 April 2023 be confirmed.

Councillor MacDonald/Councillor Peters Carried

4. Public Forum Te Huinga Whānui

Part B

4.1 Helen Broughton

Helen Broughton spoke regarding the timing around the Plan Change 14 hearings panel.

4.2 Don Gould

Don Gould spoke and provided a presentation (Attachment A) regarding the Sewage Treatment Plant.

Attachments

a Don Gould Public Forum - Presentation ⇨

5. Deputations by Appointment Ngā Huinga Whakaritenga

Part B

5.1 Extinction Rebellion

Sara Campbell spoke on behalf of Extinction Rebellion Ōtautahi and provided a presentation (Attachment A) in relation to Item 12. Christchurch City Holdings Ltd – Draft Statement of Intent 2023/24.

Attachments

a Extinction Rebellion Ōtautahi Deputation - Presentation ⇨

6. Presentation of Petitions Ngā Pākikitanga

Part B

There was no presentation of petitions.

7. Key Organisational Performance Results - April 2023

Committee Resolved FPCO/2023/00035

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

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

Councillor Johanson/Councillor Coker Carried

Councillor Barber left the meeting at 10.08am and returned at 10.11am during consideration of Item 8.

8. Financial Performance Report - April 2023

Committee Resolved FPCO/2023/00036

Officer Recommendation accepted without change

Part C

That the Finance and Performance Committee:

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

Councillor MacDonald/Councillor Scandrett Carried

9. Capital Programme Performance Report April 2023

Committee Resolved FPCO/2023/00037

Officer Recommendation 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 April 2023.

Councillor MacDonald/Councillor Keown Carried

Secretarial note: Item - 10. 2022-2023 Residents Survey Results – decisions relating to this Item were made after the consideration of Item 12 and these are recorded later in these minutes.

The meeting adjourned at 11.15am and reconvened at 11.33am.

11. ChristchurchNZ Holdings Ltd - Quarter 3 performance

Committee Resolved FPCO/2023/00038

Officer Recommendation accepted without change

Part C

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.

Councillor MacDonald/Deputy Mayor Carried

Attachments

a ChristchurchNZ Holdings Quarter 3 Performance - Presentation ⇨

The meeting adjourned at 12.09pm and reconvened at 12.23pm.

Councillor Coker assumed the Chair for consideration of item 12.

Deputy Mayor Cotter and Councillor McLellan left the meeting at 1.02pm during discussion on Item 12, and returned at 2.30pm when the meeting reconvened following the adjournment for lunch.

Councillor Templeton left the meeting at 1.11pm during discussion of Item 12 and returned at 2.30pm when the meeting reconvened following the adjournment for lunch.

12. Christchurch City Holdings Ltd - Draft Statements of Intent 2023/24
	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.
	Committee Resolved FPCO/2023/00039 Part C 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. Councillor Scandrett/Councillor Henstock Carried Councillor Coker requested that her vote against recommendation 1 be recorded.
	Committee Recommendation e. That the response to senior executive remuneration restraint does not go far enough and that clear targets need to be set to reduce the level of senior executive remuneration The division was declared lost* by 3 votes to 10 votes the voting being as follows:* *For:* Councillor Coker, Councillor Donovan and Councillor Johanson *Against:* Mayor Mauger, Councillor Barber, Councillor Fields, Councillor Gough, Councillor Harrison-Hunt, Councillor Henstock, Councillor Keown, Councillor Moore, Councillor Peters and Councillor Scandrett Councillor Johanson/Councillor Donovan Lost
	Committee Resolved FPCO/2023/00040 f. Express concern at the strategic direction of Christchurch International Airport Ltd’s proposal to continue to progress an airport at Tarras due to the costs and climate change impacts. The division was declared carried* by 7 votes to 6 votes the voting being as follows:* *For:* Councillor Coker, Councillor Donovan, Councillor Fields, Councillor Harrison-Hunt, Councillor Johanson, Councillor Moore and Councillor Peters *Against:* Mayor Mauger, Councillor Barber, Councillor Gough, Councillor Henstock, Councillor Keown and Councillor Scandrett Councillor Johanson/Councillor Donovan Carried
	Committee Resolved FPCO/2023/00041 g. Note that feedback from Sustainable Tarras Incorporated has been forwarded onto Christchurch City Holdings Ltd for consideration. Councillor Johanson/Councillor Harrison-Hunt Carried
	Committee Resolved FPCO/2023/00042 h. Confirm Council’s expectation for a living wage to be paid by all Christchurch City Holdings Ltd’s companies to all employees and suppliers. Councillor Donovan/Councillor Fields Carried
	Committee Resolved FPCO/2023/00043 i. Request Council be briefed on current position in regards to Tarras Airport, Christchurch International Airport Ltd intentions, and planned progression from now and that Council be kept informed throughout the process as it progresses. Councillor Johanson/Councillor Peters Carried
	Attachments a Christchurch City Holdings Ltd Draft Statements of Intent 2023/24 - Presentation ⇨

The meeting adjourned at 1.47pm and reconvened at 2.30pm with Councillor MacDonald in the Chair. Councillors Donovan and Harrison-Hunt were not present.

Councillor Donovan returned to the meeting at 2.34pm during consideration of Item 10.

Councillor Harrison-Hunt returned to the meeting at 2.40pm during consideration of Item 10.

10. 2022-2023 Residents Survey Results

Committee Resolved FPCO/2023/00044

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

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

Councillor MacDonald/Deputy Mayor Carried

Secretarial note: The staff presentation of this item and questions from elected members began earlier in the meeting. However, due to the time constraints of the external presenters for Items 11 and 12, questions on Item 10 were paused and the Committee returned to this Item after the lunch break.

Attachments

a 2022-2023 Residents Survey Results - Staff Presentation ⇨

Councillor Keown left the meeting at 2.54pm during consideration of Item 13.

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

Committee Resolved FPCO/2023/00045

Officer Recommendations accepted without change

Part C

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.

Councillor MacDonald/Councillor Scandrett Carried

Councillor Keown returned to the meeting at 3.36pm during consideration of Item 14.

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

Committee Resolved FPCO/2023/00046

Officer Recommendations accepted without change

Part C

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

Councillor Coker/Mayor Carried

Secretarial note: Councillor Henstock requested her concern be recorded that information about crossings no longer being installed, had not been communicated to the Waipapa Papanui-Innes-Central Community Board.

15. Shovel Ready Funding Shortfall - Major Cycleway Routes
	Officer Recommendations 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.
	Committee Resolved FPCO/2023/00047 Part C 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 in an open Long Term Plan session to prioritise the Transport budget. Councillor Templeton/Deputy Mayor Carried
	Attachments a Shovel Ready Funding Shortfall Major Cycleway Routes - Staff Presentation ⇨

16. Resolution to Exclude the Public

Committee Resolved FPCO/2023/00048

Part C

That at 3.57pm the resolution to exclude the public set out on pages 743 to 744 of the agenda be adopted.

Councillor MacDonald/Councillor Scandrett Carried

The public were re-admitted to the meeting at 4.39pm.

Karakia Whakamutunga: Given by all Councillors

Meeting concluded at 4.40pm.

CONFIRMED THIS 28^TH DAY OF JUNE 2023

Councillor Sam MacDonald

Chairperson