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STRATEGY AND RESOURCES COMMITTEE
4 DECEMBER 1995
A meeting of the Strategy and Resources Committee
was held on Monday 4 December 1995 at 4.00 p.m.
PRESENT: Councillor D C Close (Chairman),
The Mayor,
Councillors O T Alpers, C J Evans,
I D Howell, A G James, G A Moore,
M E Murray, D J O'Rourke and R B Wright.
APOLOGIES: An apology for absence was received and
accepted from Councillor P C R Harrow,
Apologies for lateness were received and
accepted from Councillors O T Alpers and R B Wright. IN ATTENDANCE: Councillor N Dodge and Councillor C E Manning. Councillors Alpers and Wright arrived at 4.10 p.m.
and were present for all clauses except clauses 1 and 19. Councillor Murray arrived at 4.20 p.m. and was
present for all clauses except clauses 1, 2 and 19. The Mayor retired at 5.45 p.m. and was present
for clauses 1-7, 10 and 15-20.
The Committee reports that: PART A - MATTERS REQUIRING A COUNCIL DECISION
1. LOCAL ELECTIONS (SINGLE TRANSFERABLE VOTE OPTION) BILL
Officer Responsible Author Legal Services Manager Peter Mitchell Corporate Plan Output: Legal Advice
The purpose of this report is to submit the draft submissions on the above Bill for the Council's approval. This Bill was introduced into the House as a private member's bill by Mr Richard Northey MP. The Bill proposes to amend the Local Election and Polls Act 1976 so as to make the Single Transferable Vote system an option available for local authority elections. 1 Cont'd The Bill provides that local authorities have a discretion as to whether they adopt the STV option although there is provision in the Bill for a binding poll to be called by electors of the local authority requiring it to adopt the STV option. At its meeting on 23 August 1995 the Council resolved that the Legislation Subcommittee approach to supporting the introduction of the Bill be confirmed. The Subcommittee met on Monday 20 November 1995 to consider draft submissions on the Bill prepared by the Legal Services Manager. The Council has until 15 December 1995 to file its submissions with the Electoral Law Committee. Councillors will recall that a seminar was held on Monday 9 October 1995 for councillors and community board members concerning the provisions of the Bill. The subcommittee noted the Legal Services Manager's advice that in approaching this Bill the Council had four options: (a) To support the Bill in its present form and seek that it be enacted; (b) To request the select committee to seek authority to commission work by an independent person on STV and other voting systems (this is the draft principal Council submission); (c) To oppose having STV as an option available to all local authorities; (d) Making no comment on the principle of having STV available but only commenting on the practical issues arising out of the Bill. This would essentially confine the Council's submissions to those matters discussed in Parts III and IV of the draft submissions. The draft submissions attached which are recommended by the Legislation Subcommittee are in accordance with (b). While the subcommittee has delegated power to approve submissions on behalf of the Council on this occasion the subcommittee considered that because of the importance of the issue it would not exercise that power but would recommend submissions to the Council. A copy of the draft submissions are attached (blue paper). One of the matters which is not presently referred to in the draft submissions attached is the requirement in the Bill (page 8) that if the STV system is adopted then the number to be elected from each ward must be a minimum of three. 1 Cont'd The Subcommittee understands from the Legal Services Manager that this provision is likely to receive strong opposition from other local authorities and it is unlikely that it will proceed in its current form. It is probable that there will be no minimum requirement for wards if STV is adopted. Even if it was adopted as a legal requirement the subcommittee does not believe that it would provide insuperable difficulties in the Christchurch context to implement. Recommendation: That the draft submissions attached be approved as the Council's submissions to the Electoral Law Committee.
2. DELEGATIONS
Officer Responsible Author Legal Services Manager Peter Mitchell Corporate Plan Output: Legal Advice
1. INTRODUCTION The purpose of this report is to recommend the delegation of a number of powers to officers and to appoint a City Manager Liaison Subcommittee. Further to the delegations made by the Council at its installation meeting on 6 November 1995 there is a need to consider further delegations. These are principally officer subcommittees and changes consequential upon the establishment of the Environmental Services Unit. There is a also the necessity to appoint a City Manager Liaison Subcommittee. 2. CITY MANAGER LIAISON SUBCOMMITTEE Recommendation 1. That a City Manager Liaison Subcommittee of the Council be appointed pursuant to Section 114P of the Local Government Act 1974. 2. That the Subcommittee comprise the Mayor and two Councillors. 3. That the terms of reference of the Subcommittee be: (a) To monitor the performance of the City Manager pursuant to his contract of service; (b) To provide an effective liaison on senior management matters as they arise. 2 Cont'd 4. That the Subcommittee be delegated responsibility to recommend to the Council reviews to the remuneration package of the City Manager taking into account advice from an external adviser. 3. TENANCY SUBCOMMITTEE Recommendation 1. That a Tenancy Subcommittee of the Community Services Committee be appointed pursuant to Section 114P of the Local Government Act 1974. 2. That the Subcommittee comprise the Property Manager and the Housing Manager. 3. That the Tenancy Subcommittee be delegated generally the powers of the Council contained in the Residential Tenancies Act 1986 and that the Property Manager or the Housing Manager be authorised to sign any documents which may be necessary arising out of decisions made by the Tenancy Subcommittee. 4. ROAD CONSTRUCTION ZONE SUBCOMMITTEE Recommendation 1. That the Council delegate to a Subcommittee comprising the Director of Operations and the Roading Manager, the power of the Council under Regulation 12 of the Heavy Motor Vehicle Regulations 1974. 2. That the Roading Manager be authorised to sign any notices made by the subcommittee pursuant to Regulation 12. 5. CITY PLAN HEARINGS COMMITTEE It is considered appropriate to give this committee the power to appoint a Commissioner if the Committee decides it necessary. This power is already held by the Resource Management Hearings Panel. Recommendation That the Council's resolution dated 6 November 1995 delegating power to the City Plan Hearings Committee be altered by the addition of the following: "That pursuant to Section 34(1) of the Resource Management Act 1991 the Council delegate to the City Plan Hearings Committee the power to appoint a hearings commissioner or commissioners where in the opinion of the committee it is desirable that a commissioner(s) be appointed for a specific City Plan hearing". 2 Cont'd 6. FINANCIAL DELEGATIONS TO OFFICERS At its meeting on 20 September 1995 the Council considered the report of the working party reviewing the purpose and conduct of Council business. That working party recommended to the new Council that the following financial delegations be approved: Acceptance of contracts for services (subject to annual plan provision) Up to $100,000 Unit Manager
Up to $300,000 Directors/City Manager
Up to $500,000 Community Boards
Up to $1,000,000 Standing Committees
Over $1,000,000 Council At its meeting on 6 November 1995 the Council adopted these delegations in respect of the Community Boards and the Standing Committees. It is now recommended that the following delegations be approved for officers. Recommendation 1. That, pursuant to Section 715 of the Local Government Act 1974 and Section 4(1) of the Public Bodies Contracts Act 1959, the Council delegate the power of the Council to enter into contracts for the purchase of materials, works and services, subject to the specified amounts in respect of items provided in the Annual Plan of the Council. (a) Not exceeding $300,000: to the Director of Operations, jointly with the City Manager or the Director of Finance. (b) Not exceeding $100,000: to the City Manager, all Directors and all Unit Managers. (c) The Art Gallery Director may expend funds available from the Art Gallery Acquisitions Budget to a limit of two-thirds of that budget (current delegation). 2. That, subject to the next paragraph, every exercise of these delegated powers be reported to the next ordinary meeting, or where that is not practicable, to the succeeding ordinary meeting of the Council in a schedule specifying the officer who exercised the delegated authority and including brief details of the transaction. This schedule shall be prepared by the Director of Finance and shall be in his report to the Council. 2 Cont'd 3. That, pursuant to Section 4(3A) of the Public Bodies Contracts Act 1959, the contracts entered into pursuant to these delegated powers which do not need to be reported back shall be: (a) All contracts of less than $150,000 entered into by the Director of Operations jointly with the City Manager or the Director of Finance. (b) All contracts of less than $50,000 entered into by the City Manager, a Director or a Unit Manager. (c) All contracts of less than one-third of the Art Gallery Acquisitions Budget entered into by the Art Gallery Director expending funds available from that budget. 4. That pursuant to Section 716 of the Local Government Act 1974 the officers named in paragraph 1 of this recommendation may delegate generally to any other officer of the Council their financial delegations. Any delegations pursuant to this paragraph exceeding $10,000 to be approved by the Director of Finance. 7. ENVIRONMENTAL SERVICES UNIT DELEGATIONS Consequential upon the establishment of this unit a number of current delegations need to include the Environmental Services Manager. Recommendation 1 That pursuant to Section 715 of the Local Government Act 1974 the Council delegate to each Community Manager and to the Environmental Services Manager all of the powers of the Council under Section 355 of that Act together with the power to sub-delegate such powers pursuant to Section 716 of that Act. (Explanatory note: removal of overhanging trees etc.) 2 That the Council delegate to each Community Manager and to the Environmental Services Manager: (a) The power to issue permits to operate amusement devices under Section 21A(7) of the Machinery Act 1950 and under the Amusement Devices Regulations 1978. (b) The power to cancel any permit to operate an amusement device under Section 21A(8) of the Machinery Act 1950. (c) The power to grant consent to the keeping of animals (other than dogs) pursuant to any bylaw administered by the Council. 2 Cont'd (d) The power to appoint Litter Control Officers and Litter Wardens under Sections 5 and 8 of the Litter Act 1979 together with the power to revoke any such appointment so made under Section 8 of that Act. (e) The power under Section 10(1) of the Litter Act 1979. (To issue notices requiring the occupier of private land to remove etc. litter from that land.) (f) The power to appoint Inspectors to enforce the provisions of all bylaws administered by the Council which relate to: (i) busking;
(ii) hawking;
(iii) mobile or travelling shops;
(iv) selling in public places;
(v) displaying of advertising devices in public places;
(vi) the keeping of animals other than dogs, 3 That pursuant to clause 4 of the Christchurch City Fires Bylaw 1991 each Community Manager and the Environmental Services Manager be appointed by the Council to administer clause 9 of that Bylaw. (Granting exemptions from prohibitions on lighting fires in the open air.) 4 That the Council delegate to each Community Manager and also to the Environmental Services Manager the power to appoint inspectors to ensure that the provisions of the Christchurch City Public Places and Signs Bylaw 1992 are observed. 5 That pursuant to Section 715 of the Local Government Act 1974 the Council delegate to the Environmental Services Manager the power of the Council to institute prosecutions for the offence set out in Section 650(4) of that Act and to make any decision in any matter relating to any such prosecution. 6 That the Council delegate to the Environmental Services Manager the power to initiate any prosecution under Parts I to IV (inclusive) of the Christchurch City Public Places and Signs Bylaw 1992 together with the power to make any decision in any matter relating to any such prosecution. Recommendation: That the above recommendations be adopted subject to regular reports on contracts let being provided to relevant committees setting out the prices submitted by contractors in comparison with the amount budgeted for the work.
3. SELWYN PLANTATION BOARD LIMITED -
EARLY REPAYMENT OF PRINCIPAL SUM
Officer Responsible Author Director of Finance Bob Lineham Corporate Plan Output: Financial Advice - Volume 1: Page 5.1 Text 4
The purpose of this report is to establish a small subcommittee to approve arrangements for the settlement of principal outstanding for the financial arrangements from the sale of the forest at Bottle Lake to Selwyn Plantation Board Limited. A similar report was submitted to the September meeting of the Policy and Resources Committee of the Council but the matter could not be concluded in the timeframe originally envisaged and it is necessary for a further subcommittee to be established for this purpose. BACKGROUND In 1990 the Council entered into an agreement with Selwyn Plantation Board Limited for the sale of trees on Bottle Lake Forest. The terms of sale involved ten annual payments escalated according to a formula based on stumpage rates applying within the company over the ten year period. The company now wish to repay the outstanding amount on this agreement. NEED FOR SUBCOMMITTEE As this agreement does not have an interest component, but relies entirely upon the growth of the principal sum based on the stumpage costs of the company it is not clear cut as to the amount which should be payable if settlement takes place earlier than originally envisaged. This requires negotiation and judgement as to the future stumpage rates likely to be payable. The Director of Finance has been negotiating this matter with the Chief Executive of Selwyn Plantation Board Limited on behalf of the Council but there is a need to have in place a mechanism for approval of the final amount. I would seek the establishment of a small subcommittee to approve the arrangements to be entered into. Recommendation: That a subcommittee comprising the Chairman and Councillor R B Wright be delegated authority to approve arrangements for the early settlement of the principal sum provided for in the sale and purchase agreement in respect of the Bottle Lake Forest trees.
4. CANTERBURY MUSEUM - PROPOSED LOAN
Officer Responsible Author Director of Finance Bob Lineham Corporate Plan Output: Museum Trust Board Levy - Volume 1 - Table III
The purpose of this report is to transmit a request from the Canterbury Museum for approval to a loan necessitated by a requirement of Canterbury Museum Trust Board Act 1993. A letter has been received from the Canterbury Museum requesting the approval of the Council to the Trust Board raising a loan of $1.5m to complete the building construction programme in the new Exhibitions Court. The Canterbury Museum Trust Board Act 1993 enables the Museum to raise a loan in accordance with the procedures of the Local Authorities Loan Act provided the Christchurch City Council and one other local authority approve the raising of the loan. The Trust Board were hopeful that no loan would be necessary for this project but have been disappointed on the initial response of the Lotteries Board seeking funding for the project. The possibility of the need for a loan had been raised in the strategic planning document "Towards 2000" which was submitted to local authorities in November 1993. The letter indicates the details of the proposed loan and the background to its need and it is worth noting that the Trust Board is undertaking to maintain the existing loan servicing contribution within the present levy and the ex gratia payment. In effect, this means that there will be no increase in the level of the local authority levy resulting directly from this loan although it does not pre-empt the possibility of increases for other purposes. I consider that it is appropriate for the Council to support this loan raising proposal by giving its consent. Councillor O'Rourke, in pointing out that the need to raise the loan had arisen because the New Zealand Lotteries Board had declined the Museum Trust Board's application for a grant towards the Stage 3 building preservation and construction work, suggested that the Council make representations, on behalf of the Museum, to the Lotteries Board seeking a review of its decision. The Committee resolved to seek a report on the background to the application to the New Zealand Lotteries Board, with a view to making a submission to the Board. Recommendation: That the Council give its consent to the raising of a loan of $1.5m by the Canterbury Museum Trust Board.
5. CHRISTCHURCH CITY HOLDINGS LIMITED RR 2038
Officer Responsible Author Director of Finance Ian Hay Corporate Plan Output: Trading Activities Monitoring Volume I Page 3.1.12
The purpose of this report is to inform members of issues discussed and recommendations made at the first meeting of the Company since the election and subsequent appointment of new directors. 1. CHRISTCHURCH CITY HOLDINGS LIMITED (a) Briefing by Company Secretary Mr Lineham gave the directors an overview of the Company structure, purpose and operations and identified some of the key issues to be worked through during the coming year. This included review and approval of the Trading Enterprise constitutions and organising a strategy for the airport shareholding in view of the Government's stated intention to sell down in the future. The briefing enabled directors to gain a better understanding of the Company operations and its integral part in the overall Council structure and finances. (b) Payment of Directors' and
Officers' Liability Insurance Directors considered a report from the Accounting Services Manager recommending that the Articles of Association be altered to allow the Company to pay the premium for Directors and Officers Liability Insurance. This is in line with similar requests from Southpower Limited, Lyttelton Port Company Limited, Christchurch Transport Limited and Selwyn Plantation Board Limited which have been approved by the Council. Recommendation: That the Council approve a Change to the Articles of Association to allow for the payment of Directors' and Officers' Liability Insurance. (c) Timing of Directors Appointments to Trading Enterprises After reviewing submissions from the companies concerned, directors approved a timetable to allow for the orderly changeover of directors on the boards of the trading enterprises. (d) Update on Financial and Investment Position
at 31 October 1995 Directors were updated on the current position in relation to the last financial year and projections for the June 1996 year. 5 Cont'd (e) New Borrowing Arrangements Directors were updated on the facilities put in place to allow for the repayment of the subordinated debt to the Council and amalgamation of Port Finance Limited into Christchurch City Holdings Limited. 2. SELWYN PLANTATION BOARD LIMITED -
RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 1995 The results for the six months were discussed by directors. Net Profit is ahead of budget and for the same period last year due to increased income from chiplog and export sales.
Recommendation: 1. That the information be received. 2. That the recommendation contained in clause 1(b) of the foregoing report be adopted. 6. LAND TRANSPORT REFORM RR 2041
Officer Responsible Author Director of Operations Jim Williamson Corporate Plan Output: Roading and Traffic
The purpose of this report is to advise the Council of implications arising from recent changes to the law in regard to Land Transport matters, and to recommend that an Establishment Unit be set up by Council to consider whether certain Council organisational elements should be transferred into a LATE (Local Authority Trading Enterprise). 1. INTRODUCTION The Land Transport Reform Bill passed into law during August 1995. In its final version there are a number of implications for this Council. As it went through the various stages, Council, through its legislation subcommittee, made representations to Government's Select Committee on a variety of matters. Some of our representations were taken up, but the majority failed to have any effect. This report assesses the changes to legislation arising from the Act and the implications from that. It also indicates what action needs to take place over the ensuing months ahead in order that the requirements of the legislation are met. A key element is the need to transfer an undertaking to a LATE if we wish to continue to be involved in carrying out major roading works. It is necessary for the Council to set up a formal "Establishment unit" to consider this aspect and bring a recommendation back to Council as to how to proceed. 6 Cont'd 2. KEY CHANGES TO LEGISLATION AND IMPLICATIONS 2.1 Transfund New Zealand A new road funding agency is set up as at 1 July 1996. Effectively, Transit New Zealand is to be separated in to two parts, one focusing on management of the State highway network, and the other part providing the funding mechanism for all roading works. The new agency is to be called Transfund New Zealand and it is to operate quite separately from the remaining Transit New Zealand. In the initial stages, however, staff will be provided from Transit New Zealand to begin the operations of the new Board. Directors of the new Transfund Board comprise two from Transit New Zealand, one from Local Government, one from road users, and one from other areas of public interest not covered by the earlier Directors. This will create a whole new set of relationship requirements. Some procedures will undoubtedly alter. Desirable outcomes over the next twelve months in this area would be the re-establishment of good working relationships and the detection of policy shifts occurring as a result of changed personnel. 2.2 Public Transport The effect of the amended Act is that no regional petrol tax will be collected after 30/6/96. It had been intended that the regional petrol tax should finish this year on 30/6/95. However, after a short delay it was extended for one year. A further change to the Act in the land transport area is that funding to public transport now becomes contestable against other road transport modes, as will funding to rail based transport "projects". With the abolition of the regional petrol tax in June 1996, there will be a requirement for the Regional Council to change the nature of the bus transport system in some way. Either $1.3 million more will be required in Regional Council rates, or services will have to alter to the same extent or efficiencies gained to that amount, or the funding shortfall sought through Transfund. Further cost saving efficiencies are unlikely considering the changes that have taken place in bus transport infrastructure over the past few years. The further element of funding from Transfund, now also being contestable against other transport priorities, means that potentially, this source of funding to public transport in Christchurch is also subject to risk ($2.55 million). The City Council will need to take an interest in this matter to ensure our objectives continue to be met. It may be necessary to join with the Regional and other Councils to lobby for a satisfactory outcome. A joint future strategy should be considered.
6 Cont'd Desirable outcomes in this area include the continuation of public transport systems which meet the needs of city residents. 2.3 Funding Alternative Forms of Transport The brief of the new Transfund Board includes explicit powers for Transfund to fund alternative forms of transport as an alternative to provision or maintenance of roading. This may make the balance of funding to road provision or maintenance against other modes such as cycle, light rail, public transport, rail freight and so on, open to a wide range of discussion. Certainly, methods of comparing the various modes of transport need to be developed. We, along with the Regional Council, will need to develop a much greater level of sophistication in planning and analysis in this whole area. Desirable outcomes in this area would be sufficient skill and understanding to maximise competent option analysis and the taking advantage of project moneys available. 2.4 Payment of Roading Revenue to Crown Bank Account The Crown liability to pay out in the future will be equal to the amount earned. This differs from the previous situation where the Ministers could decide how much to pay out from the Crown bank account. Effectively, this means that Transfund will get the lot after collection expense, refunds, land transport safety administration programme and police safety programmes have been paid for. This only applies to that portion of taxes and charges collected specifically for land transport. This should mean that we now virtually have a dedicated fund. Previous Ministers have from time to time interfered with the flow of money to Transit New Zealand, so reducing the total amount of money available to be spread across the various projects and so pushing up the benefit to cost hurdle rate. Not so very many years ago, a hurdle rate of two was quite common, but over recent years, the hurdle rates have been five and more. How significant this aspect will be is not yet able to be determined. The Bill also does not provide for consultation with Local Government on the level of road user charges applicable - hence the inflow of money is still unable to be adequately influenced. A desired outcome would be a lowered benefit to cost hurdle rate for output subsidy. 6 Cont'd 2.5 Competitive Pricing Procedures The new provisions of the act say that no payment from the (District Council) Land Transport Disbursement Account is permissible unless the price is determined by a competitive pricing procedure and no payments are permitted to a Local Authority or to a LATE: (a) Unless the Board is satisfied that the LATE was established and an undertaking has been transferred to it, and it is operating in accordance with the Local Government Act and also with any ministerial determinations. (b) Excepting for minor and ancillary works done by Local Authority business units formed and operated in accordance with any ministerial determinations. This latter requirement has transitional provisions of at least a third of the minor and ancillary work subject to competitive pricing procedures in the 1997 financial year (July 1996-June 1997) and at least two thirds in the 1998 financial year (July 1997-June 1998). The new requirement to transfer an undertaking to a LATE before it becomes eligible for funding from the Land Transport Disbursement Account means that our LATE, Christchurch Streetworks Limited, will not qualify unless we spend the time between now and when this provision comes in to force, modifying our LATE so that it does comply by transferring some kind of roading undertaking to it. This is discussed in further detail later. The further provision in this area allows Local Authority business units to tender for competitively priced minor and ancillary roading works so long as the unit is formed and operated in accordance with the ministerial determination. We are already substantially in advance of meeting the first target specified even at the moment, and will be well in excess of the 1997/98 requirements within a year, so no difficulties are anticipated in achieving these targets. Our ability to comply with any ministerial determination is not yet able to be assessed (see below). Desired outcomes in this area include a continuation of competitive tenders for roading works and avoidance of significant organisation disruption and so costs incurred. It is considered that we must stay in the market to achieve both these outcomes. 6 Cont'd 2.6 In-house Professional Services
By 1/7/97 due consideration must have been given to the advantages and disadvantages of contracting out those services to any person or organisation under at least the following headings: (a) The benefits of separating purchaser and supplier (b) Proper specification of the work (c) The desirability of transferring risk and accountability (d) Cost effectiveness (e) Benefits of ensuring contestability (f) The availability of resources (g) Other matters to be determined from time to time by the Board These new requirements to consider the advantages and disadvantages of contracting out professional services will require some study of the alternatives and a Council resolution in regard to the various elements. We need to define all of these elements and put all to the Council for a resolution. There is no requirement to consider the matter job by job. A global resolution will suffice. A desirable outcome here would be the retention of flexibility in the choice of professional services. The wording of the resolution is therefore crucial. 2.7 Determinations by the Minister
The new Act provides for the Minister from time to time to set operating and reporting requirements for LATEs and business units (doing minor and ancillary and professional services) The ministerial determination under this Act will take the effect of a Government regulation. The determinations will set the operating and reporting requirements for LATEs and business units. Currently a draft determination exists for business units (this is for minor and ancillary works and for professional services) and we are making input to the drafters in Wellington. The purpose is to achieve as good an outcome as possible, failing which, to pave the way for representations to the Regulations Select Committee. This Select Committee is able to modify or overturn any such regulation and submissions can be made to it at any stage in regard to regulations. No draft determination exists for LATEs and current indications are that providing officials in Wellington are satisfied with the composition of any LATEs arising that no such determinations will be forthcoming.
6 Cont'd A desirable outcome in this area would be supportable determinations with adequate time for implementation. 2.8 District Roading Programmes
The consultation requirement in regard to the District Roading Programme has been clarified in the new Act to allow for the public consultation requirement to take place by way of the normal annual planning process. 3. TRANSFER OF AN UNDERTAKING TO A LATE Our existing LATE, Streetworks Management Limited, is a management LATE, that is, it exists solely to tender for Transit New Zealand subsidised roading works publicly tendered in the current area of major works. Its current structure sees it hiring management and administrative services from the City Council and sub contracting all work back to the City Council's Works Operations business unit following the successful winning of a tender. For it to comply after 1 July 1996 an undertaking must have been transferred from this Local Authority to a LATE. There are strict procedures to be followed in the transfer of an undertaking to a LATE. In essence, an Establishment Unit must be formed: (a) To identify with reasonable precision the undertaking that is to be transferred to the LATE. (b) To value any such undertaking or determine a method for its valuation. (c) To determine the price that should be paid or the method for determining the price that should be paid by the LATE for any such undertaking and the extent to which the price should be met by the issue of equity securities and debt securities to the local authority from which the undertaking is to be transferred. (d) To specify the debt securities required to be issued pursuant to Section 594zi of the Local Government Act. (e) To prepare in draft form a Memorandum of Association, Articles of Association, and Statement of Corporate Intent for each LATE. (f) To determine the best manner in which, and time within which, any undertaking of the local authority should be transferred to any LATE. (g) To determine a fair and equitable system for the transfer of appropriate employees from the local authority to the LATE (but without making determinations in respect of individual employees).
6 Cont'd The establishment plan, including any divestment plans, must be made public. The Establishment Unit does not have the power to form LATEs and make investment/divestment decisions. Rather, it makes plans and recommendations to the Council. Membership of the Establishment Unit is not prescribed either in number or in composition. In this case it would seem wise to draw on those with experience as directors of Streetworks Management Limited together with one or two senior management staff to provide input from an organisational perspective. In our case, the following options exist to transfer an undertaking, ranging from the least to the most: (a) The transfer of our Bitumen Products Plant with sufficient management and support for it to tender for Transfund works although it may still source some of its inputs by way of sub contracted services. (b) The transfer of the Bitumen Products Plant plus some of the heavy roading machinery. (c) The transfer of the Bitumen Products Plant plus the heavy roading plant, plus some of the roading staff in Works Operations who carry out major roading works. (d) All of the Bitumen Products Plant and all of the roading workers and their machinery from Works Operations. (e) All of the Bitumen Products Plant, all of Works Operations and appropriate plant and support Services. (f) Variations on the above, including the possibility of joint venture arrangements with other parties. Two further options not involving a transfer of an undertaking are:- (g) Get out of major road works. (h) Sell Streetworks Management to private owners while maintaining the same relationship with Works Operations. 4. CONSIDERING THE OPTIONS No serious assessment has been done with regard to options at this stage apart from the assembly of initial information. It could be argued that the further one progresses through the options, the more we end up with a "tail wagging the dog" situation. The last option, to get out of major roading works, will have a flow on effect of destroying the viability of our Bitumen Products Plant, and probably so the remaining roading work of Works Operations. We will then have no way to influence and moderate the road contracting market. We need to
6 Cont'd achieve a result here which meets the requirements of the legislation but nonetheless, is in the best interests of the ratepayers. This will be the main focus of the Establishment unit as it progressively develops the subject based on reports from staff and appropriate consultants. 5. WHAT HAS BEEN DONE SO FAR A. A small staff project team has been set up to seek information about and attempt to influence positively the shape of the ministerial determinations. The team led by the Legal Services Manager includes the Design Services and Works Operations Managers and other appropriate staff. B. Contact has been made with Dennis Sheard of Buddle Findlay to seek clarification of some aspects of the legislation and also with a view to commissioning his involvement as necessary for the transfer of an undertaking to our LATE. C. A staff working party comprising the Director of Operations, the Roading Manager, the Works Operations Manager, and Richard English, Manager of "Roadstone Asphalts" our Bitumen Products Plant, Marshall Wright (Personnel Manager) and others are working to assemble information and establish a preliminary assessment of the advantages and disadvantages of the various options. This working party will generate a series of reports for consideration by the establishment unit. A consultancy company (Cowles Notley) with skills in this area is assisting the staff working party. The consultants in particular will assemble financial projections, business plans and valuation for the various options. D. A staff working party led by the Roading Manager and including the Design Services Manager, the Traffic Manager, and Director of Operations, is reviewing the requirements for resolutions regarding professional services and will provide a report to Council next year setting up a process for getting a Council resolution on this matter. E. A working party comprising the Office Solicitor, the Director of Operations, the Manager of Works Operations, the Design Services Manager, the Manager of the Plant and Building Services Unit, and Financial Services personnel is ready to review methodologies of operation of business units as soon as ministerial determinations make the requirement clear. F. The Environmental Policy and Planning Manager has been asked to convene a series of meetings with the Canterbury Regional Council to work through the implications of reductions in funding to public passenger transport in Canterbury. 6 Cont'd Recommendation: 1. That the information be received. 2. That an Establishment Unit be set up by the Council to consider the options with regard to transferring an undertaking to a LATE and make recommendations to the Council on the option to be chosen. 3. That the membership of the Establishment Unit include at least the Christchurch Streetworks Management Directors, the City Manager, the Director of Operations and a union representative. 4. That the Establishment Unit then consider reports from staff on pertinent matters - these to include analysis of the options including business plans financial projection and valuations. Less direct issues such as financial and legal structures, taxation issues and the impact on the Council organisation and of changing market conditions caused by the option adopted to be also considered. The establishment plan, to include the Statement of Corporate Intent, assessment of debt to equity ratios, capitalisation of the company or recapitalisation of Streetworks Management Limited if involved, transfer/payment for the undertaking, and naming of the company to be reported to Council in time for the necessary action to be taken consistent with the legislation. 5. That the Environmental Planning and Policy Manager convene a series of meetings with the Regional Council to work through the implications of reductions in funding to public passenger transport in Canterbury, and provide suitable reports to the Council on the matter with a view to establishing our perspectives and forward proposals. 6. That the Roading Manager report regularly on progress towards meeting of the target percentages of minor and ancillary works to be done through a competitive pricing methodology. 7. That Councillors Freeman, O'Rourke and Dodge, together with John Ince, Martin Hadlee, Jim Williamson, Mike Richardson and a union representative, be appointed to the Establishment Unit. 7. PROJECT 2000 RR 2004
Officer Responsible Author Communication & Promotions Manager Suzannah Morrison Annual Plan Output: Projects Page 7.5.text 3Mr Ian Leggatt, Chairman of the Turning Point 2000 Committee, presented the following report on the Committee's work to date. 1. terms of reference At its meeting on 28 February 1994 the Christchurch City Council adopted the recommendation of the Policy and Resources Committee that a Project 2000 Steering Committee be established to develop a strategic plan to celebrate the year 2000 in Christchurch and Canterbury. It was envisaged that a framework would be established to encourage community groups from all sectors of society to organise and celebrate their own activities. This would provide a diverse range of activities and enable the maximum participation of the citizens of Canterbury. In particular the Steering Committee was asked to make recommendations on: 1. Geographic boundaries for the project. 2. Name and logo for the project. 3. Specific major projects which could encourage the involvement of all sectors of society. 4. A financially sensitive formal structure so that project ideas may be realised on all levels, from the local community through to international expositions. 5. Ways of promoting public awareness.
The Steering Committee was asked to report to the Christchurch City Council by December 1995. 2. steering committee foundation and compositionA subcommittee of the Council was responsible for the process of appointing the Steering Committee. Members of that subcommittee were the Mayor, Councillor Derek Anderson, Councillor David Close and John Dryden. Steering Committee members: 7 Cont'd Ian Leggat (Chair), Dr Paddy Austin (Convener Public Relations), Rob McKay (Convener Finance), Sir Miles Warren (Convener Research), Mayor Noeline Allan, Derek Anderson, Dean John Bluck, Mayor John Chaffey, Councillor David Close, Dr John Cookson, Aroha Reriti-Crofts, Katarina Daniels, Monty Daniels, John Dryden, Councillor Peter Dunbar, Tamaiti Faletonoa, Danae Goosman, John Gray, Councillor Christine Kelland, Lyn Miles, Councillor Jack Pearcy, Patricia Proctor, Haydn Rawstron (now in England), Bronwyn Richards, Terry Ryan, Mayor Janice Skurr, Maria Tait. Mayor David Owen of Waimate has also had input into the Steering Committee.
Aroha Reriti-Crofts has since resigned from the Committee. 3. summary of the report The Project 2000 Steering Committee had its first meeting on 27 July 1995. It established three subcommittees: Research - to identify possible major activities and projects. Public Relations - to identify ways of promoting awareness and involvement. Finance - to consider approaches to funding the project. The Steering Committee believes that the project should be based in the community, the involvement should be as widely spread as possible and that the form and nature of the celebrations should be determined by community groups throughout Canterbury. The Steering Committee agreed on a vision statement and believes that the project should: * Include all of Canterbury all sections, all groups; * Foster closer relationships within the community and strengthen the regional identity; * Acknowledge and commemorate the past in Canterbury in particular:
- 1000 years of Maori settlement
- 250 years of Ngai Tahu settlement
- 150 years of European settlement; * Welcome the new millennium; * Look to the future. 7 Cont'd Regional boundaries, for the purpose of the project have been defined, to include Kaikoura in the north, Waimate in the south and to the Southern Alps in the west. A name and logo which incorporate the ideas and focus of the project have been developed. A calendar of possible events has been suggested and this includes both existing Canterbury events activities and some which would be special features of the year 2000. Suggestions have been made for possible commemorative projects. A proposed organisation structure to carry on the planning has been developed. This involves an executive committee coordinating the activities of a comprehensive web of community support. A successful project will need financial support. Possible sources of such funding have been identified. 4. vision statement The vision of Project 2000 is to encourage the fostering of closer relationships within the community through events, activities, and projects celebrating the year 2000 and the 150th Anniversary of the founding of the province of Canterbury. The vision will be met when the following objectives are achieved: * The bringing together of rural and urban communities in Canterbury to strengthen the regional identity. * The encouragement of all residents within the region to participate actively in events and projects celebrating the year 2000. * To acknowledge the Tangata Whenua and to encourage all cultural groups and organisations to share their history and the richness of their cultures throughout the region. * To take advantage of the sesqui-centennial of the Canterbury settlement. * To motivate groups and organisations into being proactive in the development of events, projects and activities celebrating the year 2000. * To capitalise on opportunities whether cultural, business, educational, sporting or other, which are presented from outside the region for the benefit of Canterbury. * Acknowledge that the youth of today will play a significant role in the development of Canterbury.
7 Cont'd 5. geographical boundaries The Steering Committee recommends that the boundaries for Project 2000 be from the north side of the Clarence River in the North to the Waitaki River in the South, from the Main Divide (Southern Alps) in the West across to the sea in the East. The local councils included in this definition are Kaikoura, Hurunui, Banks Peninsula, Christchurch, Ashburton, Mackenzie, Timaru, Waimate, Waimakariri and Selwyn. 6. name and logo A name and logo have been developed, and was launched with the official Project launch.
7. commemorative projects The Committee feels that any permanent project commemorating the year 2000 should meet the following criteria: * Relate to the whole of the Province of Canterbury. * Be functional and have a use. * Have a wide public appeal and be accessible to the public. * Be distinctive and have special meaning for the people now and in the future. * Be at least initiated in the year 2000. If a structure, ideally be completed in the year. * Have as long a life as possible. There are five recommendations for Commemorative Projects. * Major landscaping and tree planting of State Highway 1 from the Conway River in North Canterbury to the Waitaki River in South Canterbury, to create a scenic route that also helps to bind the province together. * A new Art Gallery in Christchurch could be opened 15 February 2001. It would be a showcase for culture and an appropriate major structure to mark the new millennium. * Further development of the Port Hills as a major regional park. * Historical research and publication region wide. * Further development of history trails and marking of historically significant sites particularly with reference to events of the last 50 years. 7 Cont'd 8. calendar of major events A series of themes has been developed which relate to the distinctive change in seasons, a prominent feature of Canterbury. The themes help give the year structure and should encourage events, activities, and projects to be promoted in a co-ordinated and complementary way. * Summer's theme is Family: the affirmation of family life, and a concern for the individual. It is the summer holiday season with a focus on fun and festivities. * Autumn's theme is Land: our identity through place, especially through the land. * Winter's theme is Development: a time to look at education and a very strong focus on the future. * Spring's theme is Heritage: time to reflect on the past and look ahead to the next century. A Proposed Calendar of Events, Projects and Activities
A calendar has been developed. It includes activities which already exist and others which would be special to the year 2000. It includes activities which already exist together with suggestions for new events for the year 2000. This calendar is a draft proposal of potential opportunities as a basis for community discussion.
Summer: Family Theme
(Fri) 31 December 1999 New Millennium Party, Cathedral
Square
new (Sat) 1 January 2000 Karanga at dawn Godley Heads
new (Sun) 2 January 2000 Lyttelton Regatta (Possible opening
of Club House, completion of new
marina, and installation of
`Pastime' yacht)
new (Mon) 3 + January 2000 Children's fun park (in Hagley Park)
January/February Summertimes programme (as series of
enhanced events)
new February (but International Garden Convention
November date may
be preferred)
February International cricket (Australians)
new February Major Exhibition of Canterbury Art
Mid February Opera in Park (international star)
7
Cont'd
Autumn: The Land Theme
March Food and Wine Festival (as a
showcase of Canterbury produce)
new April Agri-Business Exhibition (to
coincide with University vacation)
new April Aviation Show
new (Sun) 28 May Commemoration, at Onuku,
Akaroa-signing of Treaty of
Waitangi by Ngai Tahu
new (Mon) 29 May Commencement of tree-planting
campaign throughout region (the
major environmental project) and
along Sate Highway 1
Winter: A Development, Education, Futures Theme
new June 1 First day Mid Winter Ball ( a series of
of the Maori year celebrations)
new July-August Major Science, Industry and
Technology Expo (Convention
Centre) - international and local
exhibitors. Invite Cantabrian
talents back for lectures etc...
School Holidays Youth Arts Festival (perhaps
including schools' contribution)
new August Multi-cultural Festival
new Late August/ Early Pre-Olympic sports training
September
new July-August Regional and Christchurch Cultural
new Organisations : Expanded Arts and
Cultural Programmes (consider
`bringing home' Cantabrian talent
or engaging international
celebrities) Exhibition of
Canterbury Architectural Drawings
past and present
Spring: A Heritage Theme
new (Fri) 8 September Commemoration, Square (with
link-up) valedictory service in St
Paul's for departing colonists A
copy of 1848 Family Tree of Kemps
Purchase to London
7
Cont'd
new Sep-Oct Proposal to bring Cathedral Choir
of Christchurch, Oxford to
Canterbury and to take
Christchurch Cathedral Choir to UK.
6-15 Oct Christ's College sesquicentenary
celebrations
November International Garden Show
(alternative
timing to
February proposal)
9-11 November Canterbury Agricultural & Pastoral
Show
7-13 November Cup Carnival Week
new (Sat) 16 December Commemoration, Lyttelton. Series
of landings from Boats
representing arrival of Maori,
Early Settlers, Later Settlers,
recent immigrants etc Possible
Tall Ships, Cruise Ships
new (Sat) 16 December Commemoration. Founding
Christchurch (opening of Art
Gallery)
new (Sat) December Opening of new Canterbury History
Gallery
9. proposed structure The following flowchart represents a possible structure for the planning of the project. The structure can evolve as the requirements change. Further breakdown
of subcommittee As needed
7 Cont'd Underlying Principles Executive Committee Each member of the Executive Committee should be convener of one of the activity/regional committees. The Executive should be chaired by someone with profile and the ability to be the focus of at least the early communication and promotional activity. The Executive should also contain two people whose role it is to bring the Maori and regional perspectives to bear across the spectrum of activities - in other words, liaison people. The Steering Committee discussed the formation and composition of the Executive Committee and it was recommended that the convener of each subcommittee, and the chair of the Steering Committee be delegated the task of making recommendations to the Steering Committee regarding appointments to the Executive Committee. Administrative Backup This is vital to ensure that the energies of the volunteers are harnessed most effectively, and not dissipated into secretarial or administrative activity. Accountability From the beginning there should be clear lines of communication and accountability, particularly if there is not to be a single director of the project. The Project Director/Co-ordinator would be accountable to local authorities in the Canterbury region via the Executive Committee. The organisation should be set up according to good management principles even though the majority of those involved will be volunteers. Evolution As the plans for the year are in their infancy, it is difficult to establish a final structure at this point. The Committee believes the structure must be capable of evolving. Further developments could include: (a) The appointment of a high-profile project director closer to the year 2000 (or as soon as necessary). (b) The appointment of co-ordinators for the individual spheres of activity. (c) Possible growth of the administrative infrastructure
7 Cont'd Positioning of the Executive and Administration The Committee believes that however the organisation is structured and funded, and irrespective of the relationship between the project and Christchurch City Council, it must be seen as being separate from the Christchurch City Council, and on a different site. This would: 1. Avoid confusion of plans for the year with pre-existing festival events. 2. Ensure participation from the region as a whole. 3. Improve accessibility for the wide range of people who will be involved in one way or another. Resourcing
Depending on recommendations of the Executive Committee as to the operating structure and relationship with the Christchurch City Council there may be an immediate need for an identifiable project centre. Sufficient administration costs need to be available. A furnished office, equipped and two staff may have to be made available from that point. 10. finance Background The Christchurch City Council has provided the sum of $60,000 for the year ending 30 June 1996 specifically for administrative support to the Steering Committee and the subsequent Organising Committee. A further sum of $3,000 has been allocated from the Council's corporate budgets for logo development. Ongoing funding requirements
Administration An early role of the new Executive Committee will be to determine the funding required for its vision of the administration necessary. Obviously the need for paid support staff will increase as the year 2000 approaches - this is very much a decision resting with the new Executive. It is suggested that administrative funding be sought from the local authorities within the area. It may be that corporate support could also be available if the Executive decide to allow a major naming sponsor for the entire year of the celebration. We have identified local corporates who would ideally suit this sponsorship arrangement. 7 Cont'd Projects It is envisaged that the projects would be self funding. Corporate sponsorship is likely to be available for major events which may be considered by the Executive. In this regard local authority projects (such as the suggested new Art Museum) would be funded by the local authority promoting each project. The Committee believe that attracting corporate and local authority sponsorship is achievable in each case.
11. relationship between the christchurch city
council and the project The long term relationship between the Executive Committee and the Communications and Promotions Unit of the Christchurch City Council has yet to be determined by the Steering Committee. In the interim the servicing of the Committee and administrative functions provided by the Christchurch City Council will continue to be operated from the Communications and Promotions Unit. The budget provision for the 1996/97 financial year will need to be considered in light of the Steering Committee's recommendations for the structure of the project and its relationship to the Christchurch City Council.
Recommendation: 1. That the Council endorse the celebration of the year 2000. 2. That the report be received as a basis for the development of the year 2000 celebrations. 3. That the Council continue to provide administration support to the project until such time as the Executive Committee have determined the long term operating structure and relationship to the Council at which point the Council's administrative support be reviewed. 4. That the report be circulated all local authorities in the Canterbury region. 5. That the members of the Steering Committee and Subcommittees be thanked for their contribution to the preparation of the programme for the year 2000 celebrations.
6. That the Communications and Promotions Manager report to the March meeting on financial implications to the Council and the nature of the relationship between the project and the Council in more detail.
8. DAME NGAIO MARSH HOUSE
37 VALLEY ROAD, CASHMERE RR 1873
Officer Responsible Author Environmental Policy and Planning Jenny May, Heritage Planner Manager Corporate Plan Output: City Design and HeritageThe purpose of this report is to advise the Council that the Ngaio Marsh Heritage Trust have written requesting a further 12 month extension to the payment in full of the $125,000 interest free mortgage granted to the Trust in 1992. History 37 Valley Road, Cashmere, was the home of the late Dame Ngaio Marsh (1895-1982). Marsh, one of the leading figures in New Zealand literary and theatrical history, achieved international recognition as a crime writer. The dwelling at 37 Valley Road was designed in 1906 by noted architect Samuel Hurst Seager, a cousin of Dame Ngaio's mother Rose Marsh. Seager has designed a number of notable buildings in Canterbury including the dwelling Daresbury, the former Municipal Chambers on the corner of Worcester Street and Oxford Terrace, and the Sign of the Kiwi. Despite extensive additions to the house in subsequent years, it still retains the spirit of the craftsmanship employed in the design and architecture Seager was noted for. The Dame Ngaio Marsh house is arguably of greater value for its social history than its architectural significance. Marsh's parents built the house and she lived there for the greater part of her life. The dwelling is therefore significant for two main reasons; architectural significance as an early example of Seager's Arts and Crafts inspired bungalow style, and Dame Ngaio's reputation as a writer. The dwelling is listed in Category 1 by the New Zealand Historic Places Trust and is listed in the Appendix J of the Transitional District Scheme and in group three of the list of Protected Buildings, Places and Objects in the proposed City Plan. Council Assistance To assist with the retention of the Ngaio Marsh house as a memorial and museum to Dame Ngaio, the Council, in 1992, agreed to lend $125,000 (interest free) to the Ngaio Marsh Heritage Trust for a period of two years. The loan was to be repaid in full on 30 September 1994. A request to extend the mortgage for a further 12 months was made by the Ngaio Marsh Heritage Trust in September 1994. The Council considered the issue on 24 August 1994 and an extension was granted to the Trust on the same terms with the repayment date being 30 September 1995. On 22 September 1995 a request for a further 12 month extension on repayment of the loan by the Ngaio Marsh Heritage Trust was received. 8 Cont'd The Trust have had the proposed museum plans stalled due to difficulties with vehicle access to the site. This has required a new driveway access which has now been completed with the aid of a $25,000 grant from the Trust Bank Canterbury Trust. The installation of a new driveway access was a pre-requisite to the Resource Consent application for the `use of historic dwelling as a memorial museum, open to visitors at specific hours on specific days with the provision of four off-street parking spaces and signage'. While it may appear that the issue of traffic and parking should not have impeded work towards the museum project, the Trust did not view it prudent to begin this project until access to the site was guaranteed. A hearing of the submissions to this proposal was held on 28 September 1995 and consent was given on 4 October 1995. Conclusion The process of the statutory requirements have somewhat delayed the start of the operation of the museum and have subsequently affected the Trust's ability to repay the amount in full by the due date. The Trust is confident in the light of its proposed and current financial situation that the Council loan will be repaid in full by 30 September 1996. Recommendation: 1. That the Council grant a further extension of the repayment of the $125,000 loan until 30 September 1996 when payment in full will be required. 2. That the loan carry interest at the rate of 8% from 1 January 1996.
9. FERRYMEAD HISTORIC PARK RR 1726
Officer Responsible Author Environmental Policy and Planning John Chivers Manager Corporate Plan Output: City Planning and DevelopmentThe purpose of this report is to advise the Council of the outcome of the joint Ferrymead Trust/Council Officers Working Party study of Ferrymead Historic Park. 1. introduction In June 1995 the Council and the Ferrymead Trust set up a joint working party to explore and recommend a future strategy for the park. The Council agreed to continue the payment of the 1995/96 grant of $175,000 less $25,000 for the Council's planning inputs, on a monthly basis, as an interim measure. 9 Cont'd 2. THE WORKING PARTY Following a progress report to the Council in September 1995, the Working Party has consulted with the Trust and the societies through a written draft report and a presentation to these groups on 19 October 1995. Written submissions were invited from the interested parties. These closed on 3 November 1995. These submissions have been taken into account by the Working Party in formulating this report and its recommendations. 3. CONSULTATION
Thirteen written submissions have been received from concessionaires, societies and individuals associated with the Park. There were equal numbers of proponents for the reduced and expanded options. One submission favoured a variation to the status quo option. No submission favoured closing down. On the issue of reduced opening days, those for and against were equal. On the issue of relocating the Park entrance, twice as many opposed it as those who favoured this change. The submissions raised some new issues for the Working Party to consider, including: * Grazing is needed for the Clydesdale horses (1)
* Free admission for the public (3)
* The Council should maintain the grounds (1)
* The Park needs a new name (2) 4. the restructuring proposal The Working Party has comprehensively reviewed the current and possible future situations of the Trust, the societies and the Park. The proposal outlined below provides the means of dealing with the present Trust's financial crisis, and possible longer term actions that could be required. Short Term The Working Party's view is that in the short term (1 to 3 years) a reduced option is the only way that the Trust can survive, assuming no outside source of significant funding is immediately available. The essential components of this plan are to: (a) Relocate the public entrance point to the Park and the Trust's administration centre to a core site on Truscott's Road. 9 Cont'd (b) Reduce the Trust's operational and administration staff from 9 to 2 full-time equivalents. (c) Discontinue the scheduled tram/train service that at present takes the public to and from Moorhouse Village from the Bridle Path Road site. (d) The Council purchase the freehold land owned by the Trust so that the current, short term and long term debt of the Trust can be retired. The core site be leased back to the Trust. (e) The Council commit itself in principle to the construction of a new cross-road from Bridle Path Road to Truscott's Road. (f) The Trust's business as restructured would have significantly reduced overheads and the Council would expect the restructured business to keep to its annual budget. In this restructured environment, the council commit itself to an ongoing annual grant of $60,000 for the Trust which is separate from the land purchase and the building of the new road. Out of the grant, the Trust would pay site rental back to the Council. (g) The decision on what days of the year the Park opens to the public will be the responsibility of the Trust Board. Note that items (a) and (c) above require a resource consent application because changes to the entry point to the Park is a conditional use in the Heathcote section of the Christchurch Transitional District Plan. Long Term The research carried out by the working party concluded that the Park is unlikely, in the present climate, to find a commercial partner to operate an expanded business. The Working Party understands that a group of "Commercial Eminent Persons" has been formed who will address the investment required to expand and rejuvenate the Park's operation. The information received from the Deloitte report on an expanded operation is that the minimum investment required would be $1.5 million and the patronage required to break even financially would be 80,000 persons per year, a substantial increase from present levels of 35,000 to 40,000 per year. If a realistic visitor projection is 45,000 visitors per year, then the requirements to be viable would be: Debt funding $750,000
Capital grants $750,000
Annual grant $150,000 per year As an alternative to the "commercial attraction", it is considered the Park could be promoted and managed as a museum. To benefit from community funding other than the Council, the change to museum status would need to include the following:
9 Cont'd (a) The Societies and the Trust Board would prepare a detailed inventory of the artefacts they own or store. This particularly needs to record the historic significance of these items in the Christchurch, Canterbury and New Zealand context. (b) The Societies and the Trust Board would agree on both collection and deaccessioning policies, and take steps to put these into practice. (c) Through (a) and (b) the purpose of the Park would be brought into sharper focus. The parties involved in the Park would need to decide whether the present concept of the Park (transport and technology in Canterbury since 1850 + the Edwardian Village) needs to be modified. (d) The control of collection and the mounting of exhibitions would be vested in one management body. Societies would provide voluntary assistance within this framework. 5. working party conclusions Need for Restructuring the Trust's Business
The current high cost administration structure is not sustainable. The admission revenue is barely sufficient to cover the overhead costs associated with public entry. The present structure fails to generate surpluses to fund essential maintenance and development. Action is required by the Trust, assisted by the Council, to address this. Site Access
While it is appreciated that the present tram and train access to the centre of the site has an historic value, it is considered there are greater benefits in giving the public more direct access via Truscott's Road. The benefits include the flexibility for visitors to come and go as they please and to be able to return to their cars or bus at any time. The fixed overhead cost of operating the tram is removed. Because the tram or train ride is no longer compulsory (or included in the admission charge), it should be possible to lower the gate admission cost. A new cross road is proposed between Bridle Path Road and Truscott's Road. This will give much better road access to the new Truscott's Road entry to the Park. The approximate capital cost of this is $250,000 to $300,000. There is no provision in the annual plan to fund this work. The road would be built on Council land purchased from the Trust. Subdivision and development along the sides of this road could recoup all or part of this cost. In addition, the Council would also receive betterment for providing road access to the large area between the Park and Tunnel Road which is being evaluated for development by owners and Council officers at present. This land would not have other access, except by bridging the Heathcote River which would be expensive.
9 Cont'd Planning Issues The relocation of the entry to Truscott's Road requires a resource consent approval from the Christchurch City Council. An application for this should be made urgently, as it will take three to four months to process. In the interim, public access will need to be through Bridle Path Road and to the core site by the Park's transportation system. This should fit in with the planned staff reductions over the next few months. The Christchurch City Council has planning issues to resolve in the Ferrymead Valley generally, including control of stormwater, the management of the two former Heathcote County rubbish tips beside the river, access, and the future land uses to be permitted. A Council planning study of these issues is currently in progress, co-ordinated by the Environmental Policy and Planning Unit. Financial Restructuring For the Council to fund the status quo (pre-restructuring), an annual ongoing grant of at least $200,000, with a one-off grant immediately of $130,000, is required. The Working Party, in considering the restructuring option, has identified an annual grant requirement in the order of $60,000 as being reasonable to support the reduced option. Details of the Trust's financial position, together with the Working Party's annual budget for a reduced operation, are contained in the public excluded agenda. The Council to Settle the Trust Debts
in Exchange for the Ownership of the Land
The working party consider the sale of the Trust land to the Council is in both party's interests in that: * The Council is getting tangible value in exchange for funding the Trust, including debt repayment. * The Council has planning needs for the north end of the valley which land ownership would facilitate. All of the buildings would remain the property of the Trust or the societies. The Working Party consider the Council should offer to purchase all the land owned by the Trust, including that on long-term lease to Tramway Society, for up to $378,890, made up of the purchase price for land and grants to cover costs in excess of the purchase price, subject to: 9 Cont'd 1. The proceeds being used to pay outstanding debt. Details of the debt are contained in the public excluded agenda. There is no provision for these funds in the annual plan. 2. Grant a long term lease to the Trust on the core site. 3. The Tramway Society give up the 999 year lease for the land occupied by their storage barns at the Bridle Path Road end, at the cost price plus up to $2,000 for lease set-up legal costs, full cost up to $17,000. 4. Grant to the Trust a short term lease over the Bridle Path Road land while it is not required by the Council. 5. Making provision of $100,000 to $200,000 to relocate the Society tenants from the Bridle Path Road site to the core site. These funds will not be required immediately. This is the end of the Working Party report. The report that follows has been written by the Senior Planner. 6. interim council support for the trust In addition to the distribution of the monthly grant as approved by the Council, applications have been made by the Trust to vary the grant of $150,000 to facilitate the restructuring of the Trust's operation. The objective is to ensure that the Trust continues to operate as a venue for the public until the Council has had an opportunity to review this report. On the Council's behalf, the Director of Finance approved the following variations: 1. On 30 October, $10,000 sourced from either the $25,000 balance of grant assigned or from grants designated in the months November 1995 to end of February 1996. 2. A commitment made on 17 November 1995 to advance approximately $10,000 of the January and February grants to fund restructuring of the Park to reduce operating expenses.
The Council is now asked to confirm these actions and to define the source of funds. Also, the Council should give professional support to the Trust's application for a resource consent to relocate the entrance and access. A request has been received to advance $15,000 to the Trust to fund the relocation of the Park entrance to Truscott's Road. The Director of Finance should be given authority to deal with this within the total grant of $175,000 this year.
9 Cont'd The Chairman comments: "The report recommends the adoption of a "short-term restructuring proposal". Though some elements of the proposal are genuinely short-term, others could better be described as medium-term. The Trust itself has made the difficult decision to cut costs drastically by reducing staff, but a strategy to deal with pressing debts is essential if Ferrymead is to remain open. It is understood that the staff reductions already made result in savings of $1,900 per week ($100,000 per year) and that further savings can be made from rationalisation of the tram operation. The relocation of the public entrance and the construction of the proposed road access will require a resource consent, and the tram service cannot be discontinued until the relocation of the entrance is carried out. It is important that these medium-term measures do not delay the immediate need to deal with the critical debt problem." Recommendation: 1. That the Council endorse the historic, heritage, social and technological value of Ferrymead to the City of Christchurch, and confirm its wish to see the assets of the core site protected for future generations. 2. That the Council adopt the restructuring proposal as outlined in the report, including recommendations 3(a)-(g) below. 3. (a) That the public entrance point to the park and the Trust's administration centre be relocated to a core site on Truscott's Road. (b) That the Council purchase the freehold land, excluding improvements, owned by the Trust at not more than valuation as soon as practicable. (c) That the Trust undertake to use the sale proceeds to repay its debts to its bankers, the Council and other creditors. (d) That the land purchase be funded at the six monthly review and the Council lease back the core site to the Trust at a negotiated rental, based on valuation. (e) That the Council's annual operating grant to the Trust be not less than $60,000 for 1996/97 after the purchase of the land. (f) That the Trust apply for a resource consent to relocate the entrance. (g) That the Trust undertake to reduce tram operating costs in the interim.
9 Cont'd 4. That after a resource consent has been obtained the Council give consideration to assisting the Trust with their relocation costs to the core site and consider the construction of a proposed road. 5. That the Trust submit for the Council's approval a draft operating budget for the balance of the 1995/96 financial year; the budget to be based on realistic visitor assessments and income projections. 6. That no funds be advanced to the Trust after 1 January 1996 without confirmation from the Trust that they will work to the business strategy outlined in this report. 7. That the variation to the grant for 1995/96 as made by the Director of Finance be approved and sourced from the 1995/96 grant of $150,000 + $10,000 of the unassigned grant of $25,000 (total $160,000) and that the Director of Finance be given authority to make any other changes in the delivery of the 1995/96 grant of $175,000 as he considers appropriate, to fulfil the objective of recommendation 6 above. 8. That the Ferrymead Trust project be referred to the Community Services Committee for the development of a long term strategic plan to ensure that the Ferrymead site moves towards sustainability.
10. CHRISTCHURCH PIER RR 2024
Officer Responsible Author Environmental Policy & Planning Dean Chrystal Manager Corporate Plan Output: New Assets, City Planning and Development
The purpose of this report is to bring the Committee up to date on progress on the Pier Project and to seek approval, subject to conditions, to progress towards implementing the project, including recommending to the December Council meeting acceptance of a tender for construction of the pier. 1. BACKGROUND The New Brighton Pier Promotion Trust was formed in 1991 with the purpose of raising funds to build a pier at New Brighton, to provide both an economic and recreation benefit to New Brighton. The Design Services Unit was commissioned by the Pier Promotion Trust to carry out a study covering engineering and construction matters concerning the Pier proper and foreshore approaches, plus estimates for
10 Cont'd construction and maintenance costs. A design team of Pier Promotion Trust members and Council officers considered various alternative designs, construction material, wave heights and so on. This information was presented in an Indicative Design and Feasibility Study Report (Nov 1992). The study identified the most favoured option to be an all-concrete pier which would cost an estimated $4 million. A coastal permit and land use consent were then applied for and obtained in March 1994 by the Pier Promotion Trust. In March 1993 the Council made draft provision of $2m for the New Brighton Pier in the Capital Works Programme for the 1994-1996 period, subject to consideration of further reports confirming the feasibility of the project. In November 1993 the Council confirmed the funding offer subject to: (a) A matching contribution from the New Brighton Pier Promotion Trust; (b) The project proceeding at the latest by December 1996; (c) An updated time-frame being obtained from the Pier Promotion Trust; (d) That the Trust keep the Council informed through the Burwood/Pegasus Community Board of progress in the planning of the Pier project and associated fundraising. In February 1994, it was resolved that the capital works budget allocate the New Brighton Pier Project $1m in the 1995/96 budget year and $1m in the 1996/97 budget year on the same conditions as previously adopted by the Council. It was also resolved that $25,000 be granted to the Pier Promotion Trust in the 1994/95 year for planning and design work of the Pier Project, and that a subcommittee be formed to investigate the Pier proposal and any responsibilities of the Council relating to the ultimate construction and subsequent management of the Pier. This was subsequently confirmed by the Council in July 1994 with the addition of a clause indicating that the Pier Promotion Trust was to raise 50% of the estimated capital cost of the pier project up to a maximum of $2m and the Council being satisfied as to the availability of the funds before the subsidy is released. In April 1994 the Council confirmed the establishment of the New Brighton Pier Subcommittee comprising Councillors A Clark, N Dodge, C J Evans and A G James. The terms of reference of the Subcommittee were as follows: - Liaison with the Pier Promotion Trust, in terms of fundraising and management responsibilities.
- Review the commercial and recreational options of the Pier, as proposed by the Trust including foreshore opportunities.
10 Cont'd - Monitoring of the further design and planning studies undertaken by the Pier Promotion Trust.
- Review of the management options and the extent of management necessary by the Council during and after construction in relation to the range of activities associated with the Pier and its maintenance requirements.
- Liaison with other interest groups involved in promotion and planning of Brighton to ensure a co-ordinated approach to the development of the area.
In September 1994 the subcommittee commissioned a feasibility and management study on the pier proposal. The New Brighton Pier Feasibility Study was undertaken by a consortium of Royds Consulting, Hames Sharley and Ernst & Young, and completed in December 1994. This study concluded that the development of the pier could provide the "icon" around which successful promotion of the area could be based and that, as a leisure facility targeted mainly at Christchurch residents and domestic visitors offering limited commercial opportunities, it was feasible. The findings of the study were received by the Council in December 1994. 2. MEMORANDUM OF UNDERSTANDING Negotiations between the Council and the Pier Promotion Trust over the past eight months have resulted in the signing of a Memorandum of Understanding (tabled). The Memorandum of Understanding, which was approved by Council in July 1995, sets out the responsibilities and agreements reached between the two parties. Of particular note is that the Pier Promotion Trust is to satisfy the Council not later than the ordinary Council meeting in December 1995 that it has raised $1 million and will raise a further $1 million. This will be addressed later with an interim report from the Pier Promotion Trust. Of further note is that the Pier Project has been capped at $4 million by the Council. 3. PROJECT STAGES For reasons of clarity and convenience, the project has been split into three stages while reference is also made to the issue of landscaping in this section of the report. Only two of these (Stages 1 and 2) are covered by the $4 million allowed for in implementing the project. (i) Stage 1 Stage 1 of the project covers the pier structure itself, from the sea wall outwards. Detailed design work on this stage began with bore hole tests in May 1995. The design work has been undertaken by the Design Services Unit and funded by the Pier Promotion Trust.
10 Cont'd The pier will be a 300m long concrete structure, supported on 17 columns. The deck of the pier will incorporate two pairs of alcoves, a 15.0m diameter end platform, seating, handrails and lighting. With Council approval, tenders for Stage 1 were called for in October 1995 and have now been received. The results of the tendering process are detailed later in this report. (ii) Stage 2 Stage 2 consists of the access platform and abutment, stairs and ramp. The design of this stage has needed to take account of access onto the pier for pedestrians and vehicles, movement between the pier and New Brighton Mall and the possibility of an adjoining building associated with development on the foreshore. After having a conceptual design produced, the detailed design of this stage began in October 1995 and is now completed. This has been undertaken by Barclay Hodgskin Architects Ltd and again funded by the Pier Promotion Trust. It was considered necessary to have Barclay Hodgskin undertake this work because of their involvement in Stage 3 (see below). Stage 2 has however been designed to stand alone if necessary. It consists of an access platform and abutment for the pier deck, a ramp to the south, and steps to the north and west. There is an ability to utilise the space beneath the platform for such things as kiosks. The development will involve some reconstruction of the sea wall. This may require a resource consent if it is shown to intrude into the C1A (Coastal Margins) zone where buildings are a discretionary activity. Preliminary cost estimates of Stage 2 have been undertaken and these are provided later in this report. (iii) Stage 3/Foreshore Development Throughout the process of developing the Christchurch pier project, it became apparent that there was a need for a supporting structure/ facility at the land end of the pier to assist in making this a destination attraction. This was confirmed by the feasibility study carried out at the end of last year. In order to progress this part of the project, the officer project team under the guidance of the Pier Subcommittee, proceeded to consider options for a commercial facility at the land end of the pier which would complement the pier itself. Talks were initially held with Barclay Hodgskin and Associates Ltd with a view to developing a concept plan. This was carried out along with discussions of likely tenants for the building. Plans were presented to the Pier Subcommittee and approval given for the concept to be further developed. We have continued to develop plans in association with Barclay Hodgskin. To date the fees for this stage have been met by the consultants.
10 Cont'd We have now reached a stage where we have confirmed interest from several tenants. We have obtained briefs detailing their requirements and have developed plans to accommodate these. The design is considered to be sympathetic to the Pier design and structure along with the foreshore environment. The process is now at a stage where negotiations are progressing with the potential tenants and rental rates are being discussed. Once these discussions have progressed, the rental rates will be used as inputs into the financial feasibility model to confirm the financial feasibility of this stage of the project. It is not envisaged that the Council would fund this stage but would allow development of a building on the land in exchange for a ground lease and that the building could be sold to an investor. Preliminary indications are that there is likely to be a commercial return from this stage. The option therefore remains for the Council to retain entire ownership of this total asset and benefit from the return potentially available from development of this stage. The development of Stage 3 is dependent upon the pier project being confirmed, and would be subject to separate Council approval. During the past year the Council also received two further proposals for development on the foreshore. The first of these was for an aquarium to the south of the land end of the pier. The proponent of this proposal was given a six months' option to undertake a feasibility and funding study on the proposal. The option expired in September 1995 and to date no study has been received. A privately initiated proposal for a development at the land end of the pier was presented to the Subcommittee in August 1995. After consideration the subcommittee felt the design of the proposal and its vast amount of non public space were incompatible with the foreshore location (iv) Landscaping Landscaping is an issue which has yet to be finalised. Clearly there is a need for substantial landscaping in the area immediately opposite the mall entrance which to date has not been budgeted for. It should be noted that this was never a part of the $4 million pier project. A preliminary assessment of landscaping requirements in this area, include paving, soft landscaping, lighting, furniture, improved curb and channel and the restoration of the clock tower, has been estimated to cost $250,000. Additional income derived from the development of Stage 3 could possibly be used to fund the landscaping. There may however also be a need for the Council to fund landscaping in this area.
10 Cont'd Current budget provisions for improvements in the general area of the Pier include Parks $240,000 (1996-1998) which forms part of the coastal development programme and involves improving the nearby dune environment through recontouring, planting, fencing and landscaping of the car park areas; Roading $50,000 (1998/99) for upgrading the road crossing between the Mall and foreshore; and $300,000 (1996-1998) for the redevelopment of Beresford Street. 4. TENDERS FOR STAGE 1 In the interest of obtaining high quality tenders, interested contractors were publicly invited to make application for tender registration. These were evaluated against the set of required attributes and a tendering short-list established and approved by the Pier Subcommittee. Tenders for Stage 1 of the project have been received as follows: McConnell Dowell Constructors Ltd $2,964,369.00
Fulton Hogan Civil $3,089,315.00
Daniel Smith Industries Ltd $3,250.370.00
Downer Construction (NZ) Ltd $4,104,000.00
Fletcher Construction NZ & South Pacific $4,219,201.58 These tenders include a contingency sum of $150,000 and exclude GST. The third placed conforming tenderer, Daniel Smith Industries, has also offered alternative tenders of $3,050,370 and $2,850,370 for two alternative designs. The first alternative involves the use of an `all precast' deck of constant thickness instead of the specified design comprising precast beams and an in-situ deck. This alternative is $86,001 more than the conforming bid of McConnell Dowell and can be discounted for this reason. Smith's second alternative involves the same deck as the first alternative but also replaces the single central circular column with two square driven piles. Although Smith's second alternative is $113,999 cheaper than McConnell Dowell's tender, the following points need to be stated: (a) In early discussions on what form the pier should take, it was agreed that the structure should not intrude significantly or be at odds with the existing landforms. It was important that the structure be graceful and, as much as possible within the budget constraints, distinctive. A double pile structure, such as the Smith alternative, with strong angular lines does not fit into the existing landscape as well as the preferred option. The additional piles place an unwanted emphasis on the support of the deck. This proposal is very much a utilitarian solution and has no features that make it special or unique.
10 Cont'd The new pier will be distinctive so that it will become a recognised symbol of New Brighton and Christchurch. (b) From a structural engineering point of view, the practice of using single columns has become widespread among bridge designers in New Zealand, and indeed worldwide, offering significant advantages over multi-column designs, particularly with regard to earthquake performance and durability. (c) A similar design to Smith's alternative was considered during the original feasibility study and was discounted for the above reasons. (d) It was a condition of the resource consent that the "pier shall be built in general accordance with the plans submitted at the hearing" with the commissioner commenting that "the simple concrete structure with single column supports minimises visual impact". The double column alternative could therefore involve a re-opening of the consent process which would result in additional costs and time delays. (e) If the alternative tender were accepted, there would be inevitable additional costs tending to reduce the apparent cost savings over the lowest conforming tender, eg. cost of reviewing the alternative design, reaching agreement on details such as alcoves and end platform. Taking the above factors into account, Daniel Smith Industries' alternative tender of $2,850,370 is not recommended. McConnell Dowell's Tender McConnell Dowell are one of New Zealand's major construction companies and received the highest weighted attribute score of all companies registering interest in the project. They have assured us that if awarded the contract, they will be able to start work in February 1996 and complete the project within 65 weeks which is four weeks longer than the specified time. However, they propose to build a temporary access ramp, which bridges the existing stone seawall north of stages 2 and 3 and then curves across the beach to meet the pier at the second column. This will have the significant benefit of avoiding conflict with work on Stages 2 and 3 and removes the necessity of using the Stage 2 ramp, and the tight construction time constraint that this involves. Their request for a 65 week contract period is therefore considered acceptable, notwithstanding that the completion of Stage 1 would be delayed until 30 April 1997. Subject to funding, the acceptance of McConnell Dowell Construction Ltd's tender of $2,964,369.00 is recommended. 10 Cont'd 5. STAGE 2 ESTIMATE A preliminary assessment of the Stage 2 design has been undertaken by Rawlinson & Co Ltd. This has shown an estimated cost of $610,000 excluding toilets and changing facilities, which are not part of the project funding. This estimate includes a 5% contingency. A peer review of the estimate is currently being undertaken. 6. FUNDING (i) Funding Budgeted As indicated in Item 1 "Background", the $4,000,000 budget is to be financed as follows: * Funds in CCC 95/96 Budget $1,000,000
* Funds in CCC 96/97 Budget $1,000,000
* Funds raised by the Pier Promotion Trust * $2,000,000
$4,000,000 * Payment of this money is set out in Clause 10 of the Memorandum of Understanding. (ii) Funding Required The current status of the funding requirements for Stages 1 and 2 is as follows:
Stage 1 (Pier) Stage 2 (Access Totals
platform, ramp
and steps)
1. Stage 1 - McConnell 2,964,369 2,964,369
Dowell's tender
2. Stage 2 - provisional 610,000 610,000
estimate based on
Barclays design as at
28/11/95.
3. Prof. fees for 178,000 33,275 211,275
design, contract 9,000 3,000 32,725 12,000
documentation, contract 32,725
management and site
supervision. (a) Design
Services Unit (b) OCEL
Consultants (c) Barclay
Architects
4. Boreholes/Soils and 9,200 9,200
Foundations Ltd
10
Cont'd
Stage 1 (Pier) Stage 2 (Access Totals
platform, ramp
and steps)
5. Resource Consent 80,659 15,797 96,456
(costs incurred to date,
pro-rata between St 1
and St 2 costs)
6. Inflation allowance, 24,772 39,203 63,975
commissioning costs, -------------- ------------ -------------
management plan, etc. 3,266,000 734,000 - 4,000,000
Note: The construction figures for both stages include 5% contingencies which together total $179,000. 7. TIMETABLE FOR CONSTRUCTION A provisional timetable for construction has been established based on Council approval in December to proceed with the project. Approval is obviously subject to the Pier Promotion Trust meeting their funding obligations. The construction of the pier itself (Stage 1) would begin in February 1996 and is expected to take up to 15 months to complete. At around the same time, tenders for Stage 2 would be called with construction possibly beginning in May 1995 and taking around 10 months. This may however be subject to negotiations regarding Stage 3. The following timetable is based on the Council confirming that the project will proceed in December. Stage 1
* Report tenders to Strategy & Resources Committee 4 December 1995
* Council accepts Stage 1 tender 13 December 1995
* Construction 1 Feb 1996-30 April 1997 Stage 2
* Report cost estimate to Strategy & Resources 4 December 1995
Committee
* Council approves the calling of tenders for 13 December 1995
Stage 2.
* Detailed design, drafting and contract documents 14 Dec 1995-29 Feb 1996
* Tendering period 4 Mar-20 Mar 1996
* Report tenders to Property & Projects Committee 11 April 1996
* Construction 1 May 1996-28 Feb 1997 (10 months) Stage 3
* Subject to on-going discussions. 10 Cont'd 8. INTERIM FINANCIAL REPORT FROM PIER PROMOTION TRUST The Pier Promotion Trust has submitted a report (tabled) detailing its financial position. As stated earlier in this report, the Trust is required to satisfy the Council by the December 1995 Council meeting firstly, that it has raised $1 million and, secondly, it will raise a further $1 million as its contribution to the construction of the Pier. The following financial information has been extracted from the report to confirm that the Trust has met the former requirement: (a) The Amount of Cash the Trust has in its Bank Account
Funds held with Trust Bank Canterbury together with the gaming machine float and accounts receivable GST refunds (as at 31/10/95) $172,289.80 The expenses specified in the Third Schedule attached to the Memorandum of Understanding and dated 22 August 1995 paid by the Pier Promotion Trust from non-Council funds to obtain the resource consent for the Pier $96,456.25 (b) The Amount of Pledges for Cash in Writing Received by the Trust and Payable in Full by 30 April 1996 Pledges as at 27/11/95 $66,575.00 reduced by 15% = $56,588.75 (c) The Amount of Pledges for Cash in Writing Received by the Trust and Payable after 1 May 1996 Pledges as at 27/11/95 $11,891.33 reduced by 20% = $9,513.06 (d) Design and Construction Costs Funds paid to Design Services (as at 31/10/95) $55,595.10 (e) Fixed Assets (i) Gaming machines - book value as at 31/10/95 $29,368.00 (ii) Lot 58 Aston Drive:
- dwelling $141,360.00
- fencing $2,000.00
- capital appreciation in section value $15,000.00
10 Cont'd (f) Trust Bank Community Trust $600,000.00
-----------------
TOTAL $1,178,170.90
==========
Documentation supporting the above figures is contained in the tabled financial report. The Trust, in its financial report, advises that the following initiatives are in place to raise a further $821,829 being the balance of the Trust's contribution to the project: 1. A direct public appeal. 2. An application to the Lotteries Board for a grant. The Committee, while commending the Trust for their fundraising achievements to date, agreed that the following additional information should be obtained for the December Council meeting to ensure that the Council has all the information it requires to make an informed decision on the future of the project: 1. The outcome of the application for Lotteries Board funding. 2. A progress report on the public appeal. 3. A clearer statement of the net value of the house and an assurance that there are no liabilities attached to it. 4. Evidence of the Trust's ability to meet the payments schedule contained in clause 10 of the Memorandum of Understanding. The Committee resolved that a supplementary report be prepared for the Council meeting, reviewing the financial information provided by the Trust and containing the additional information requested at the Committee meeting. Because of time constraints and the timing of the Lotteries Board meeting, it was not possible to include this report in the main agenda for the Council meeting. It will be tabled at the meeting. Recommendation: 1. That approval be given to proceed with the project and commence construction of Stage 1 of the Pier, and to call for tenders for Stage 2 subject to: (i) The total cost estimates for Stage 2 not exceeding $734,000. (ii) The Council being satisfied, on the evidence supplied by the Trust, that it has met its funding obligations.
10 Cont'd
2. That, subject to 1(ii) above, the tender of McConnell Dowell be accepted. 3. That negotiations for a Stage 3 development to complement the Pier structure, continue along the lines set out in section (iii) (Stage 3/Foreshore Development) above. 4. That provision be made in the 1996/97 budget for funding, should this be required, for the landscape treatment of the immediate foreshore area between the proposed pier and New Brighton Mall. 5. That from the time of acceptance of the tender, the Projects and Property Committee undertake the management of the project. 11. APPOINTMENT OF COUNCIL REPRESENTATIVES
TO OUTSIDE BODIES RR 1981
Officer Responsible Author Principal Committee Secretary Julie Sadler Corporate Plan Output: Elected Member Representation, Vol I 1995/96 Corporate PlanThe purpose of this report is to present the results of a survey of the Council's current representatives on outside bodies on the need for ongoing involvement with the various outside organisations to which the Council makes appointments. BACKGROUND Currently the Council appoints a total of 44 representatives to some 34 organisations of a wide-ranging nature within the city. To assist the new Council in the task of determining the levels of future representation the previous Council requested staff to seek comment from the current representatives on the benefits to the Council and the wider community of continuing these associations. PRESENT COUNCIL POLICY The present Council policy governing these appointments is as follows: "That the Council appoint formal representatives on outside organisations only where the proposed appointment will be of clear public benefit or benefit to the Council, or where the appointment is required for statutory reasons, or under the provisions of the relevant Trust Deed or Constitution, etc. of the organisation concerned."
11 Cont'd CURRENT SITUATION The City Manager reported to the 6 November 1995 Council meeting recommending that, apart from the New Zealand Local Government Association, the existing representation on outside bodies continue in the meantime. The Council adopted the City Manager's recommendation and appointed the following Councillors to represent the Council at Zone 5 meetings of the Association: Councillor O T Alpers
Councillor G L Freeman
Councillor M E Murray
Councillor D C Close (alternate)
Councillor P C R Harrow (alternate) RESULTS OF SURVEY A summary of the responses to the questionnaires was circulated to all Councillors prior to the Committee meeting. The survey disclosed that in most instances the current representatives believe that the Council should maintain the appointments at the current level. In the case of Christchurch Hospital Nurses Chapel Trust, Orton Bradley Trust and the Tau Mahi Trust, officer level, rather than elected member, representation has been recommended largely on the basis that these groups would find the technical or specialist advice and/or support staff would provide more helpful. A review of the Council's representation on the Christchurch Community Arts Council, when local cultural funding arrangements have been resolved, has been suggested. Councillor Cox has recommended that the Council discontinue its representation on the Christchurch Symphony Orchestra for the following reasons: * It is the CSO's policy to become more self-sufficient and reduce its reliance on grants. * The relationship has changed between the CSO and the Council and CSO can now be viewed as a "customer" of the Town Hall and a "contractor" for SummerTimes. Councillor O'Rourke has recommended that the Council discontinue its membership of the Sumner Lifeboat Institution as the Institute does not need this form of support from the Council to run efficiently. 11 Cont'd COSTS The cost of providing elected member support to outside organisations in the 1994/95 financial year was in the order of $11,500. The cost would have been greater had all members claimed their meeting allowance entitlements. It should also be noted that the Council is not permitted to remunerate the non-Councillor appointees. In the past, meeting allowances for meetings of outside bodies have been paid at the Community Board daily remuneration rate (currently $105) as opposed to the Council daily rate ($170). With regard to the appointments for the 1995-98 term, Councillors have been canvassed as to their preferences to enable the appointments to be made at the present meeting. The Committee, having considered the results of the survey and the views of the current representatives on ongoing involvement with the organisations concerned, makes the recommendations detailed below. Recommendation: 1. That the Council continue its association with the organisations listed in the attached schedule (green paper), at the levels indicated. 2. That the Spreydon/Heathcote Community Board be invited to appoint one of its members to represent the Council on the Port Hills Park Trust Board. 3. That, given the Mayor is not able to attend Board meetings on a regular basis because of other commitments, the Victory Park Board's consent be sought to the appointment of a Councillor as a non-voting observer at meetings of the Board. 4. That elected member representation be discontinued on the Christchurch Hospital Nurses Chapel Trust, the Orton Bradley Trust and the Tau Mahi Trust and that in each case an officer be appointed to represent the Council on these organisations. 5. That the Council discontinue its representation on the Sumner Lifeboat Institution on the grounds that the Institute does not need this form of support from the Council to run efficiently. 6. That a decision be made on the Council's future involvement with the Family Life Education Trust and the Christchurch Community Arts Council. 7. That Councillors who claim payment for attendance at meetings of outside bodies be paid at the Community Board rate.
12. CANTERBURY REGIONAL COUNCIL RR 2040
Officer Responsible Author Principal Committee Secretary Julie Sadler Corporate Plan Output: Elected Member Representation, Vol I 1995/96 Corporate Plan
The purpose of this report is to establish a joint Standing Committee with the Canterbury Regional Council and to determine the membership of the joint committee and the other Council appointments to Canterbury Regional Council committees. The following letter has been received from the Administration Manager, Canterbury Regional Council, regarding the reappointment of representatives to that Council's newly-established committees: "At its meeting on 14 November 1995 the Council determined its committee structure for the new term. Those requiring representation from your Council are as follows:
Area Committee
As a result of comments received it was decided to retain the Central Area Committee. The views from other district councils and appointed representatives was that the committee was a important forum for opinions to be aired.
Could you please appoint one representative from your Council. When advising your representative could you also advise the name of an alternative to act if your appointee is unable to attend any meeting.
The first meeting of this committee is scheduled for the end of March 1996.
Regional Land Transport Committee
The representation from the previous term has been reduced overall, although the representation for the territorial authorities remains unchanged.
We would welcome receiving your nomination for this committee.
The first meeting of this committee is scheduled for 21 February 1996.
Regional Civil Defence Committee
Could you please nominate one elected representative to this committee.
The first meeting of this committee is scheduled for 28 February 1996.
12 Cont'd Joint CRC/CCC Committee
The need for a separate arrangement between the Christchurch City and Canterbury Regional Councils to assist liaison on matters of mutual interest was strongly supported by this Council.
The terms of reference and the membership numbers will be finalised after discussion with your Council. Those discussions are expected to take place very shortly.
We would appreciate receiving your nominations at an early date."
The Environmental Policy and Planning Manager reported to the 29 November 1995 meeting of the Environmental Committee identifying the areas where close co- operation with the Canterbury Regional Council is important. These include resource management issues, the resource consents requirement of a number of Council operations, and public transport. The Environmental Policy and Planning Manager recommended to the Committee that joint committees be set up with the Canterbury Regional Council to monitor and overview city resource management issues and the planning of public transport within the city. The Committee supported this proposal and nominated the Chairmen of the Environmental and City Services Committees and Councillors Alpers, Harrow and Crighton (together with appropriate officers) for appointment to the proposed joint committee. The Environmental Committee also considered that the Committee should be given the power to co-opt or substitute members if deemed desirable for relevant issues. Recommendation: 1. That pursuant to section 1145 of the Local Government Act the CRC/CCC Liaison Committee be established as a joint Standing Committee of this Council and the Canterbury Regional Council. 2. That the City Council members of the Committee be the Chairmen of the Environmental Committee and City Services Committees and Councillors Alpers, Harrow and Crighton (together with appropriate officers) 3. That the Council determine its appointments to the following Canterbury Regional Council committees: Area Committee
Regional Land Transport Committee
Regional Civil Defence Committee
13. RE-ESTABLISHMENT OF RR 1984 SUMMIT ROAD PROTECTION AUTHORITY
Officer Responsible Author Principal Committee Secretary Julie Sadler Corporate Plan Output: Public Accountability, Vol I 1995/96 Corporate Plan
The purpose of this report is to re-establish the Summit Road Protection Authority and to determine the Council membership of the authority and its advisory committee. The Authority is responsible for administering the provisions of the Summit Road (Canterbury) Act 1963 and has the status of a joint Standing Committee. The Banks Peninsula District Council and the Selwyn District Council are the other two contributing local authorities and the Act provides for each Council to appoint one member to the Authority. It will also be necessary for the Council to make an appointment to an advisory committee of the Authority. The Parks Manager was appointed to serve in this capacity by the previous Council. Recommendation: 1. That pursuant to section 114S of the Local Government Act the Summit Road Protection Authority be established as a joint Standing Committee of the Christchurch City Council, the Banks Peninsula District Council and the Selwyn District Council to administer the provisions of the Summit Road Act 1963. 2. That Councillor O T Alpers be appointed to the Authority. 3. That the Parks Manager, or his nominee, be appointed to the Summit Road Protection Authority Advisory Subcommittee. 14. REVISED 1996 MEETINGS SCHEDULE RR 1987
Officer Responsible Author Principal Committee Secretary Julie Sadler Corporate Plan Output: Elected Member Representation Vol 1995/96 Corporate PlanThe purpose of this report is to present an updated meetings schedule for the Council's approval. The new schedule (attached - pink paper) contains the proposed dates of Standing Committee seminars, corrects the errors in the original schedule and transfers the Parks and Recreation Committee meetings to week 2, the week in which the majority of Standing Committee meetings are held. The Committee was originally scheduled to meet in week 4 at 2.00 p.m. on the Thursday after the monthly Council meeting. The change in meeting dates is
14 Cont'd being recommended as it will reduce the undesirably long gap between the Committee meeting and the Council meeting to which the Committee will be reporting. As the proposed starting time of Parks and Recreation Committee meetings (2.00 p.m.) did not suit the Chairman the meeting time has also been changed. Unfortunately the tightness of the meeting timetable meant that a conflict with another Standing Committee meeting was unavoidable. The Committee will now meet on the same day as the Environmental Committee. As no Councillors are members of both Committees, inconvenience to elected members should be minimal. Note: Because of the workload the Annual Plan meetings will impose on Councillors, no seminar-style meetings have been scheduled for Standing Committees in February (with the exception of the Strategy and Resources Committee). Recommendation: That the revised meetings schedule for the 1996 calendar year be approved. 15. SUPPLEMENTARY ITEMS The Chairman, in seeking approval to introduce supplementary reports on the following topics, explained why the items were not on the main agenda and why the matters could not wait for the next meeting of the Committee: 1. Centennial Pool Redevelopment. 2. Sublease of CTL Land. 3. Shirley Library and Service Centre. The Committee resolved that the reports be received for consideration at the present meeting. 16. CENTENNIAL POOL REDEVELOPMENT RR 1997
Officer Responsible Author Leisure and Community Services Alan Patterson Manager Corporate Plan Output: Enhancement Programme PoolsThe purpose of this report is to update Councillors on the Centennial Pool site redevelopment proposal and to seek an extension of the undertaking given by the Council to Mainzeal Property and Construction Limited in respect of the site. Following an advertised request for proposals process, the Council, at a special meeting held on 30 March 1995, gave the company an undertaking not to sell, lease or otherwise dispose of the site to any other party before 31 January 1996 to allow Mainzeal a reasonable opportunity to obtain, by that date, an agreement to acquire the site.
16 Cont'd In essence the Mainzeal proposal provides for 16-18 residential properties fronting Oxford Terrace, an indoor fitness/leisure pool and a commercial high rise building capable of accommodating a minimum of 150 persons on the Armagh Street frontage of the site. Officers have had ongoing discussions with Mainzeal and also Vic Davies of Interwater Inc., Canada, regarding a concept design for the new pool which is to remain in Council ownership. The pool concept includes a 25 metre eight lane fitness pool, a therapeutic leisure pool, sauna/steam rooms, swirl pools/bubble machines, single and family change rooms, weights/fitness room, aerobics room, child minding facilities and a cafe. The pool hall will be attractively decorated in line with a theme yet to be determined. Because of the need to be accurate in both design and cost and to ensure the Council obtains maximum revenue from the sale of the land not required for the pool, officers will not be in a position to report to the Council until February 1996. In view of this it is considered that the undertaking given to Mainzeal Property and Construction Ltd should be extended to 28 February 1996. Recommendation: That the undertaking given to Mainzeal Property and Construction Limited in respect of the Centennial Pool site be extended to 28 February 1996. 17. SUBLEASE OF C.T.L. LAND
Officer Responsible Author Property Manager Rob Dally Corporate Plan Output: Corporate Plan OutputPurpose The purpose of this report is to process a request from Christchurch Transport Ltd (C.T.L.) to sublease part of the land that they currently lease from the Council. Background The Council has entered into a Deed of Lease with C.T.L. covering the land and buildings on the corner of Moorhouse and Fitzgerald Avenues and Ferry Road. The Lease commencement date was 1 July 1991 for a three year term with two further rights of renewal, each of three years. C.T.L. now wishes to confirm with subleases, arrangements that have been in place for some time, as follows: (a) Sublease to Mobil Oil New Zealand Ltd for use as a "service station truck stop for the sale of diesel". 17 Cont'd (b) Sublease to Vehicle Testing New Zealand Ltd for use as a "vehicle testing and associated or related services, public passenger transport and related activities". Property Comment The proposed uses of the premises are compatible and synergous with the existing public passenger transport business operation from the site, meet Head Lease requirements and are at no cost to the Council. The term(s) of the subleases are one day less than the Head Lease. Legal Comment Clause 36(1) of the Lease with C.T.L. stipulates the criteria for acceptance of any sublease. Buddle Findlay have perused the documents and advise that the Council has no grounds to reject the sublease requests. Recommendation: That the subleases to Mobil Oil New Zealand Ltd and Vehicle Testing New Zealand Ltd be approved. 18. SHIRLEY LIBRARY AND SERVICE CENTRE
Officer Responsible Author Property Manager Gilbert van Schaijik Property Output: Commercial Property. Property Services Libraries and Service Centres
Purpose The purpose of this report is to consider resolutions to enable the legal technicalities of the land exchange with Woodvale Ltd to proceed in accordance with existing Council resolutions and so the transaction can be completed at the time possession of the properties is given and taken. Explanation The resolutions below are legal technicalities which are required to complete the land exchange transaction for the new Shirley Library and Service Centre. These resolutions have been drafted by our legal advisers and are required to complete the transaction on the date of completion of the building which will be early in the new year before the first Council meeting for 1996. In the case of resolution 4 and 5 the following explanation is given: Running to the West, from the rear of lots 6 and 7 DP 19094 (the old library and service centre titles), is a right of way in gross over part of the existing mall car park to provide access from those properties to Marshlands Road. Upon the sale of those properties this right of way will:
18 Cont'd
Become surplus to Council requirements; but cannot be merged by Woodvale by Unity of Seisin. A formal surrender and partial cancellation of conditions under Section 243(d) RMA is therefore required. Resolutions 1. The Council acquire from Woodvale Limited, by agreement under Section 17 of the Public Works Act 1981 the land described in the Schedule for the purpose of Housing Pensioners. Schedule An estate in fee simple in 310 square metres or thereabouts being that part of Lot 1 LT 71179 formerly comprised in Lot 6 DP 20979 and being part of Certificate of Title 15K/586. 2. The Council acquire from Woodvale Limited, by agreement under Section 17 of the Public Works Act 1981 the land described in the Schedule for Commercial Purposes. Schedule An estate in fee simple in 1001 square metres or thereabouts being parts of Lot 2 LT 71179 formerly comprised in: (a) Lot 6 DP 20979 and being part of Certificate of Title 15K/586 (523 square metres). (b) Lot 1 DP 28535 and being part of Certificate of Title 10F/1428 (206 square metres). (c) Lot 3 DP 28535 and being part of Certificate of Title 10F/1391 (215 square metres). (d) Lot 12 DP 17170 and being part of Certificate of Title 10F/388 (57 square metres).
3. Pursuant to Section 52(4) of the Public Works Act 1981, the land described in the Schedule which is presently held by the Council for the purpose of Housing Pensioners shall henceforth be held by the Council for Commercial Purposes. Schedule An estate in fee simple in 517 square metres or thereabouts being that part of Lot 2 on LT 71179 formerly in Lots 4 and 5 DP 20979 and being part of Certificate of Title 2B/557 4. The right-of-way easement in gross created by Transfer 99996/2 over Lot 2 DP 55794 (marked B F P on DP 55794) be surrendered. 5. Pursuant to Section 243(e) of the Resource Management Act 1991, to partially revoke the condition of approval shown on the plan deposited in the office of the District Land Registrar at Christchurch as Deposited Plan 55794 as to the easement set out below.
18 Cont'd
Memorandum of Easements
Nature Servient Tenement Dominant Tenement
Lot No. Shown
Right-of-way in 2 B F & P Christchurch City
gross Council
Recommendation: That the above resolutions be adopted.
PART B - ITEMS DEALT WITH BY THE COMMITTEE AND
REPORTED FOR INFORMATION ONLY
19. ELECTION OF DEPUTY CHAIRMAN Councillor M E Murray was elected Deputy Chairman of the Committee. 20. REVALUATION OF THE CITY 1995 The Funds Manager submitted a report providing the preliminary revaluation results for the Council's area. The Committee resolved: 1. That the information be received. 2. That the Funds Manager, in consultation with Communications and Promotions staff, arrange a series of newspaper advertisements reminding property owners of their objection rights and explaining the likely impact of the new valuations on their rates.
21. THE 1996/97 ANNUAL PLAN STRATEGY AND PROCESS The Financial Planning Manager presented a report updating the Committee on the 1996/97 Annual Plan strategy and process. During discussion on the report the Mayor requested that details of the actual cost of introducing a kerbside recycling scheme in 1996/97 be included in the draft budget. The Committee resolved that the report be received.
22. LOCAL GOVERNMENT REFORM BILL Councillor D C Close reported on his attendance, with Councillors Murray and Harrow, at the recent New Zealand Local Government Association Zone 5 meeting in Blenheim. At the meeting, Carole Stigley, the Chief Executive of the NZLGA, advised members that the above measure was expected to be before the House of Representatives prior to the Christmas recess and was likely to contain prescriptive provisions in respect of the application of user charges for services provided by local authorities.
22 Cont'd The Committee endorsed concerns expressed by Councillor Close regarding the implications of such a move which, if enacted, would deprive local authorities of their longstanding right to determine how to fund services, as well as increasing the potential for litigation. The Committee agreed that an urgent meeting should be arranged with local Members of Parliament immediately the provisions of the legislation were known, with a view to seeking their support for the retention of the status quo for this key local government responsibility.
23. ITEMS RECEIVED The Committee received the following reports: 23.1 Staff Overseas Travel
The report of the City Manager detailing the permission granted for overseas travel in October and November. 23.2 Plant Replacement Programme
The report of the Plant and Building Services Manager detailing expenditure on the plant replacement programme for the period to 30 November 1995. 23.3 Disabled Persons' Resource Centre
Application for Financial Assistance
A report advising that an application for a grant or an interest free loan to assist with a property purchase had been received from the above organisation. The application will be the subject of a report to the relevant committee in February. 24. RESOLUTION TO EXCLUDE THE PUBLIC The Committee resolved: 1. That the draft resolution to exclude the public set out on page 51 of the agenda be adopted. 2. That Mr Steve Scott, Manager, Ferrymead Trust, be permitted to remain at the meeting after the public has been excluded because of his specialist knowledge of Ferrymead Historic Park which could be of assistance to the Committee in its deliberations. CONSIDERED THIS 13TH DAY OF DECEMBER 1995
MAYOR