This page is not a current Christchurch City Council document. Please read our disclaimer.
STRATEGY AND RESOURCES COMMITTEE
19 FEBRUARY 1996
A meeting of the Strategy and Resources Committee
was held on Monday 19 February 1996 at 4.00 p.m.
PRESENT: Councillor David Close (Chairman),
The Mayor,
Councillors Oscar Alpers, Carole Evans,
Pat Harrow, Ian Howell, Alister James,
Garry Moore, Margaret Murray,
Denis O'Rourke and Ron Wright. IN ATTENDANCE: Councillor Barbara Stewart. APOLOGIES: Apologies for lateness were received and
accepted from Councillors Alpers and Moore. Councillor Alpers arrived at 4.05 p.m. and
was present for all clauses. Councillor Moore arrived at 4.10 p.m.,
retired at 5.45 p.m. and was present for
clauses 1-5, 7-9 and 10.1. The Mayor retired at 5.45 p.m. and was
present for clauses 1-5, 7-9 and 10.1. The Committee reports that: PART A - MATTERS REQUIRING A COUNCIL DECISION
1. WORKS ESTABLISHMENT UNIT - FEES RR 2298
Officer Responsible Author Group Manager Finance Bob Lineham Corporate Plan Output: Corporate Expenses
The purpose of this report is to set the level of remuneration for members of the Works Establishment Unit.
At the December meeting of Council an Establishment Unit was set up under Section 594I(1) of the Local Government Act to consider issues relating to the possible formation of a LATE and the transfer of an undertaking to it to enable the Council to continue to obtain Transit New Zealand subsidies on work performed by the Council. The purpose of this report is to advise the Council on an appropriate level of fees payable to members of the Establishment Unit. 1 Cont'd
LEGAL AUTHORITY
The Legal Services Manager advises: "Establishment units are provided for in part XXXIVA of the Local Government Act 1974 and in particular s.594I(1) provides: "(1) Every local authority that proposes to transfer any undertaking to any local authority trading enterprise shall constitute and adequately fund an establishment unit, which shall comprise such persons as the local authority considers appropriate, having regard to the functions of the establishment unit". You will note that the Council is directed to "adequately fund" the establishment unit which is to comprise such persons as the Council considers appropriate. In my opinion an establishment unit is not a committee of the Council but is a separate entity set up under s.594I. In that situation I am of the view that part IVc of the Local Government Act which contains provisions regarding the remuneration of Council members is not applicable to the payment of fees to members of the establishment unit. In particular part IVc empowers the Minister of Internal Affairs to make a determination regarding the salaries for chairpersons and members of local authorities and for members of committees and subcommittees. There is no reference in part IVc to that determination being applicable to members of an establishment unit. Consequently the salary and meeting figures provided for in the Local Government (Regional and Territorial Authorities and Community Boards Salaries and Allowances) Determination 1994 do not apply to the members of the establishment unit. Further, the restriction in that determination on a councillor not being paid more than one salary would not apply to a councillor who is a member of an establishment unit. So that that person could receive a salary as councillor and also separately a fee as a member of an establishment unit. With regard to the payment of fees I believe that the Council should adopt the practice which it has used in the past, such as with the Passenger Transport Establishment Unit, of setting a per annum fee for members of the establishment unit and a fee for the chairperson of that unit. These fees would be set by resolution of the Council. 1 Cont'd
I note that members of the Passenger Transport Establishment Unit were paid $11,000 per annum and the chairperson was paid $22,000 per annum."
PAYMENT OPTIONS
As indicated in the report of the Legal Services Manager quoted above, the Council is able to set fees on a separate basis from ordinary meeting fees payable to Councillors. The practice adopted at the time of the Passenger Transport Establishment Unit was comparable to the fees payable to Directors of a company. The members of the Establishment Unit are Councillor Dodge (Chairman), Councillor Freeman, Councillor O'Rourke, Mr Martin Hadlee, Mr John Ince, Mr Bernie O`Brien, the City Manager and Director of Operations. It is not proposed that any fees be payable to the two senior salaried staff members. The Establishment Unit is scheduled to meet fortnightly for approximately two hours until the end of June. There is a possibility that the Unit may continue on after this date if one of the more complex options is adopted which takes longer to implement. Two alternative methods of payment are: On the same scale as Councillor meeting fees; or
On an annual salary basis comparable to Company Director fees. The Council meeting fees basis would provide a per meeting fee of $170 per meeting plus a salary for the chairman. This fee structure assumes however that Councillors are getting a base salary and it would therefore be necessary to provide at least some element of a base salary for those appointees who are not Councillors. This would mean that there would need to be different payment structures for Councillor and external appointees. Based on the scheduled fortnightly meetings with external appointees receiving a base annual salary of $5000, an external appointee would receive approximately $4,100 to 30 June and Councillor members would receive $2,040. Assuming a Chairman's annual salary of $13,000, the total cost to 30 June 1996 would be approximately $24,000. An annual salary basis based upon fortnightly meetings of two hours duration and assuming an equal amount of preparation time at a rate of $75 per hour would produce an annual salary rate of $7,800 or $3,600 to 30 June. The Chairman of a commercial board would normally be remunerated at 50% greater than ordinary members therefore a rate of $11,700 p.a. or $5,400 to 30 June would be appropriate. Payment on this basis until 30 June 1996 would cost a total of approximately $23,400. I believe that it would be appropriate to adopt a system of payment which treats all members on an equivalent basis and therefore the annual salary basis would seem the most appropriate.
1 Cont'd
Recommendation: 1. That ordinary members of the Establishment Unit be remunerated on an annual salary rate of $7,800 p.a. until 30 June 1996. 2. That the Chairman be paid at an annual rate of $11,700 per annum. 3. That if the Establishment Unit continues past 30 June 1996, the level of fees be reviewed at that time. (Note: Councillor O'Rourke declared an interest in the foregoing item and abstained from the discussion and voting thereon.)
2. VALUATION NEW ZEALAND
RESTRUCTURING PROPOSALS RR 2281
Officer Responsible Author Funds Manager Geoff Barnes Corporate Plan Output: Rates Administration Volume I Page 5.2 text 6
The purpose of this report is to recommend submissions to the Valuer General on restructuring of Valuation New Zealand. The Valuer General has released a proposal and has invited submissions from Local Authorities by 23 February 1996. The proposal is a discussion document generated substantially by Valuation New Zealand and is yet to be considered by the Government. Council staff have already made submissions to the Local Government Association, as they had a January deadline. Valuation New Zealand supplies capital values used for rating under statute at a cost to Council of $1.350m p.a. It is also a source of land use data. There is general support for a more competitive environment for valuation services. This Council values the independence of an external agency setting the rate apportionment base and maintaining links with other Crown agencies who have land information. Most of our concerns are on accountability issues: - Is the charging mechanism appropriate; - Are the costs local authorities are expected to incur correct given the benefits to other users of the information; - Is the focus of the reorganisation proposal going to add value to local authorities or is a wider approach necessary. 2 Cont'd
THE COUNCIL'S REQUIREMENTS
Before considering the proposal it is reasonable to state the Council's requirements from a valuation supplier. The Council requires a fair and reasonable valuation service at a reasonable price appropriate to the primary need of rate apportionment. The Council needs a fair and equitable basis to distribute rates between ratepayers within the city. The basis must be credible and contestable by the ratepayer. To do this the process must identify properties and occupiers (roll maintenance) and it must set a base for rate apportionment (values). The Council does not get specific value from: (a) Knowing the total capital value of the city other than the total of the rating base for reconciliation purposes. (b) Knowing the market value of each property other than as a means of determining rate apportionment. (c) Providing other marketable valuation services. (d) Valuation professional development, ie, supporting the valuation industry. These latter functions are services provided by Valuation New Zealand but generally benefit parties other than the Christchurch City Council. VALUATION NEW ZEALAND PROPOSALS
Valuation New Zealand has supplied two discussion documents (tabled), one referring to reorganisation, the second to marketing opportunities for the data held by Valuation New Zealand. The main area of concern to the Council is in reorganisation. The marketing opportunities largely lie with Valuation New Zealand as it intends to retain ownership of the data. It is intended that: - The role of policy formation be separated from the valuing function. - The Office of the Valuer General for policy - Valuation NZ will be the contracting valuing unit. - The Database, reporting, and marketing functions will lie with the Office of the Valuer General. - District valuations may be put to tender to Licensed Valuation Suppliers, VNZ may be a tendering party. - The primary funder of valuations will still be local authorities. 2 Cont'd
An outline of the relationship between local authorities and the Office of the Valuer General is contained on pages 7 and 8 of the discussion document. PROBLEMS WITH THE CURRENT SYSTEM
FROM LOCAL AUTHORITY PERSPECTIVE
(a) The Fairness of the Charge Made on Local Authorities One of the Council's concerns has been that the Council is paying an unreasonable portion of Valuation New Zealand's costs. For 1995/96 the Valuation New Zealand budget is: Revenue 1995/96 Budget Local authority contributions 19,500
Sales of services 2,460
Crown contributions 4,324
Government departments 500
Other 1,757
Interest 87
---------
$28,628
===== Expenditure (Outputs) Roll revaluation 8,966
Roll maintenance 10,518
Crown:
Legislative and Ministerial 47
National property database 4,277
Property information services 4,518 Valuer Registration Board 215
---------
$28,541
===== It can be seen that the tasks of roll revaluation and roll maintenance total $19.5M. This equals the expected revenue from local authorities. Therefore the assumption is that Valuation New Zealand charges local authorities for the primary collection of data. Local authorities pay $19.5M of the $28M of costs. As this is assumed to cover the maintenance and revaluation data, some of which provides value to parties other than local authorities, it is reasonable to question the validity of this apportionment. If local authorities argue that say 25% of the data worth is used by other than local authorities, this equates to $5M of overcharge. 2 Cont'd
(b) Fairness of the Apportionment of the Charge to Each Local Authority The allocation of the charges to district and regional local authorities is made by Valuation New Zealand in conjunction with the Local Government Association. The basis of the calculation is not advised to the Council. However, the valuation cost per assessment is similar to all councils, around $11.50 per assessment. Christchurch City has the largest number of assessments and as such there may be economies of scale relevant to us. An open market oriented charging regime should reflect fair and reasonable costs. (c) Ownership of Data Crown agencies including Valuation New Zealand have always claimed copyright on the data they hold and issue. From our perspective this is unreasonable in that: (i) much of the data comes from local authority sources; (ii) the data is collected primarily for local authority use and is paid for by local authorities; (iii) there is a public interest in keeping the data freely available to the community to ensure interchange of data and low cost of land information data bases. For one agency to claim exclusive ownership and therefore the ability to sell that data impedes the free flow of data. COUNCIL RESPONSE TO THE VALUATION NEW ZEALAND PROPOSAL
(a) Access to the Current Data at Changeover Time The Council would agree with the proposal that the data be made available free of charge to whoever provides roll maintenance and valuation service for the future. (b) Valuation Standards set by the Office of the Valuer General It is proposed that the Valuer General set the valuation standards. These standards may be inappropriate for local authorities as they may go beyond the primary need of developing a base upon which rates can apportioned and support the Crown requirements only. If the standards and the cost of compliance are higher than is necessary to local authorities then ratepayers will be subsidising central government. (c) There is no mention that territorial local authorities will be compensated for the data by the Crown in the discussion documents although this is mentioned in two appendices to the Weaver and Company report, the legal section and the costing section. The proposal is that at the territorial local authority choice, a district valuation may be put to tender. 2 Cont'd The territorial local authority will incur costs to issue this tender and manage the results as well as pay the successful contractor. These costs will produce the valuation data, part of which provide benefit to the Crown in that the Valuer General will retain access to and ownership of the property values. It is reasonable therefore that the local authorities be compensated in part for these costs on the basis of benefits. (d) Provision of Valuation Services for Regional Councils Regional councils pay part of the valuation cost. In Canterbury the Regional Council pays $500,000 of which it is estimated $300,000 pertains to Christchurch City. If the territorial authority pays for the valuation services, will the regional councils be expected to reimburse the territorial local authorities or will they be billed direct by Valuation New Zealand? (e) It is not clear whether or not the record keeping and computer systems of Valuation New Zealand will be the primary data storage for the future. If so at what cost? If not then will territorial local authorities be required to set up and maintain data storage and processing facilities? If the Valuation New Zealand systems will be used in the future, it is not reasonable that territorial local authorities be charged for receiving reports from that system as is the current practice. Generally the proposals seem to be aimed at supporting the Government's control and ownership whilst giving limited scope for cost reduction to the territorial local authorities. Also the proposals do not appear to be developed sufficiently to assess the operational or cost impact on this Council. The Council needs continuing access to land attribute data and at no extra charge as the collection has already been paid for by local authorities. The Corporate Planning and Information Development Manager advises: "From an information perspective I have three main comments to make. 1. OWNERSHIP OF DATA BY OVG
Upon implementation the Office of the Valuer General would assume ownership of the roll and copyright the data. As I understand it this has been mooted in the past and the same issue now arises - TLAs have made a substantial contribution to the development of this database, supplying data free of charge to develop and maintain it and facing charges to buy it back. The legitimacy of this proposal for unilateral ownership has and should continue to be challenged. We should seek legal advice on the options facing the Council/TLAs in this regard and register in our submission the need for `ownership' to be considered more closely. 2 Cont'd
2. LAND INFORMATION/FUTURE CHARGING REGIME
To date when buying roll data from VNZ our primary interest has been values but almost as a byproduct we obtain access to computerised land/property attribute data "free of charge". In development of the Council's land information database and applications based on it e.g. Planning Policy analysis of development rates / potential etc. we have come to rely on this data. In the future as the OVG establishes a database marketing function and as "data products" are defined and developed a possible negative impact on the CCC will be separate and increased costs for "valuation" and "land information" products. I say possible because there is no relevant information in the restructuring proposal documentation regarding charging regimes but if the history of government reforms is anything to go by then we shouldn't be surprised suffice to say for the purpose of a submission we should prosecute a case for early and continued consultation with core clients (ie. TLAs) over development of database marketing and in particular charging regimes. 3. DATA INTEGRITY/ENHANCEMENT
Both in the information we supply in the future to OVG and in that which we obtain from the roll there is a clear thrust in the reform proposals to upping the game all round in terms of the accuracy and timeliness of data supply. That is to be applauded as is the possible enhancement of the land information component by computerisation of attributes still held only in hard copy. To that extent as OVG becomes more entrepreneurial and commercial modes of operating more widespread then product quality, customer rights etc. pose advantages to us. At the same time this impetus will extend to us as a major contributor of raw data to the roll maintenance and development activity. So we could well face a requirement to increase staff / computing resources to respond. It is too soon to tell to what degree and where the balance of increased cost will lie but it is a possible effect of the reforms. Again early and continuing consultation will be necessary to protect our interests and maximise the benefits." OTHER OPTIONS WHICH COULD BE CONSIDERED
Given the primary goal is for territorial local authorities to obtain a creditable basis for rating, the Government could allow/compel territorial local authorities to establish a capital and land value by their own resources subject to maintaining minimum standards and appropriate procedures. The data obtained by councils would be available for the primary purpose and could be sold to the Crown if the Crown requires it. Valuation New Zealand may be the valuing agency or private sector contractors may be engaged.
2 Cont'd
A variation on this would be as above but with a reduced requirement for accuracy. It is possible to achieve a reasonable allocation of rates if capital values were determined to within say $10,000. The Crown or any other organisation could obtain valuation services necessary for their function from any appropriate provider. This may not need a national data base of values. CONCLUSION The following is recommended as the Council's submission to the Valuer General: * The Council supports independent valuation.
* Agrees with the establishment of a competitive environment.
* Disagrees with Crown ownership of the data given that councils appear to be paying for it.
* Has concerns regarding the current charging regime which enables the Crown to receive payment for services and data originally collected/paid for by TLAs.
* Is unhappy about the lack of transparency in the charges made to local authorities.
* Is concerned that the standards for valuation data may be set too high when the prime users basically only require an apportionment system for rates which could be much more broad brush.
* Insufficient data is supplied about the process of recording data. - Where it will be held. - Will user computer systems be a prerequisite. If so these huge systems may impair major potential savings? RECOMMENDATION
It is recommended that the Chairman be authorised to approve a submission which canvasses the issues raised in this report. The Chairman commented: "The report provides a very useful analysis of issues that arise from the proposal to restructure Valuation New Zealand. In particular, it emphasises the need for more transparency in setting valuation charges and questions whether Valuation New Zealand should profit commercially from information which local authorities have paid for. However, I have doubts as to whether the Council should support the restructuring proposal in general, and, in particular, the introduction of private valuers into the system. I am not aware of any major objections raised to the work of Valuation New Zealand. Obviously, there are individual property owners who disagree with the valuation of their properties, and local authorities, who were once provided with a subsidised service, have objected to the charges levied for valuation services in recent years. However, the "Government valuation" has been established as part of everybody's understanding of property values for many years. 2 Cont'd The new system would continue to be a "Government valuation" but the public might not have the same confidence in private valuers, even though they were working under the supervision of Valuation New Zealand. Another objection is that, if Valuation New Zealand were to be undercut in the first tender round, it might close its office in a district and would be in a position to re-tender, since it has no other business." In addition to canvassing the issues outlined above, the Committee agreed that the Council's submission should also advocate the development of a joint VNZ/Department of Records land information database rather than the enhancement of the existing stand-alone system. Recommendation: That the Council's submission be: 1. That Valuation New Zealand continue to operate as at present, providing a national service, but that its charges be transparent and limited to cost recovery. 2. That, if the restructuring proceeds, Valuation New Zealand be subject to the constraints set out in the report. 3. That Valuation New Zealand explore the opportunities for integrating the land information databases held by VNZ and the Department of Land Records, rather than further enhancing its existing stand-alone system.
3. SUBMISSION TO SRHA ON
TERTIARY HEALTH SERVICES RR 2292
Officer Responsible Author Director of Policy Jennifer Pitcher Corporate Plan Output: Strategic Planning page 8.1.3BACKGROUND The Southern Regional Health Authority called for submissions for tertiary health services in December 1995. (See SRHA booklet and "Tertiary Health Services in NZ" report tabled separately.) The Chairperson of the Community Services Committee invited interested Councillors to form a working party, which consisted of Councillors Moore, Close, Condon and Harrow to consider these reports. A draft was prepared by the Senior Policy Analyst at the direction of this working party, utilising information from the cardio-thoracic working party previously established, and input from Professor A M Richards, Christchurch School of Medicine. A copy of the proposed submission to the SRHA is attached (yellow paper) and now requires formal ratification. Submissions close with the SRHA on 1 March 1996.
3 Cont'd
As this issue is of great interest to Christchurch residents, Councillor Wright suggested that the Council should provide residents with the opportunity of expressing their support for a local cardio-thoracic unit by means of a petition. The Committee endorsed this suggestion and also a further suggestion that advertisements be inserted in the print media giving details of the submission process and inviting local residents to support the Council's submission. Recommendation: 1. That the submission be endorsed. 2. That the Council organise a petition in support of the submission in co- operation with Cardiac Companions and other interested groups, and that submission forms be available, with appropriate publicity, at all service centres and libraries. 3. That advertisements publicising the petition and the submission process be inserted in the print media.
4. METROPOLITAN FUNDING SUBCOMMITTEE RR 2137 TERMS OF REFERENCE
Officer Responsible Author Leisure and Community Services Dennis Morgan Manager Corporate Plan Output: Grants Administration Vol II Page 8.4.10
The purpose of this report is to seek a review of the terms of reference of the Subcommittee. The Council has established the Metropolitan Funding Subcommittee (Councillors David Close, Graham Condon, Carole Evans, David Buist and Patrick Harrow) with terms of reference as follows: (i) To consider applications by organisations for grants and disburse monies received through the Hillary Commission Local Recreation Scheme and from Council funds. (ii) To consider all special requests and metropolitan requests, either written or by deputation that fall outside the normal funding cycle. (iii) To make recommendations to the Strategy and Resources Committee on allocations over $5,000 from the events seeding grant. The Subcommittee met on 20 December to consider applications for grants from the events seeding fund. In addition the Subcommittee reviewed the terms of reference adopted by the Council at its meeting on 6 November 1995. It was noted that the terms of reference varied from that of the Special Grants Committee appointed by the
4 Cont'd previous Council. The terms of reference adopted by the Council on 6 November require that the Subcommittee make recommendations to the Strategy and Resources Committee on allocations over $5,000 from the event seeding grant. The Special Grants Committee of the previous Council was delegated to disburse events seeding grants in excess of $5,000. The Subcommittee members are of the view that the delegation to the previous Grants Special Committee should be continued. Recommendation: That the terms of reference of the Metropolitan Funding Subcommittee be amended by the deletion of (iii) "to make recommendations to the Strategy and Resources Committee on allocations over $5,000 from the event seeding grant" and replacing it with: 1. That the Leisure and Community Services Manager be authorised to approve events seeding grants up to $5,000. 2. That applications between $5,000-$10,000 be referred to Subcommittee members for comment before approval by the Leisure and Community Services Manager. 3. That consideration of event seeding grants applications in excess of $10,000 be referred to the Subcommittee for consideration and approval. 4. That the Mayor be appointed a member of the Subcommittee.
5. APPOINTMENT OF COUNCIL REPRESENTATIVES
TO OUTSIDE BODIES RR 1981
Officer Responsible Author Council Secretary Julie Sadler Corporate Plan Output: Elected Member Representation, Vol I 1995/96 Corporate PlanThe purpose of this report is to complete the appointment of Council representatives on outside bodies. While the majority of the appointments for the 1995-98 term were finalised at the December Council meeting, decisions on the appointment of the Riccarton Bush Trustees, and the Council's future involvement with the Family Life Education Trust were deferred until February. The Riccarton Bush constitution provides for the Council and the Riccarton/Wigram Community Board each to appoint three representatives to the Trust. While the Community Board appointees must be elected members, the Council has the option of appointing either Councillors or non Councillors as its representatives. The Riccarton/Wigram Community Board appointees are Councillors Buist, Berry and Mr Kunnen.
5 Cont'd
The Council reappointed the former City Manager, Mr John Gray, as its representative on the Ferrymead Trust, subject to his availability. Mr Gray has since advised that owing to other commitments he is unable to attend Trust meetings on a regular basis and for this reason would prefer not to accept this appointment. It will be recalled that at its December meeting the Council resolved to discontinue its representation on the Sumner Lifeboat Institution (SLBI) on the grounds that the Institute did not need this form of support from the Council to run efficiently. Prior to the meeting contact was made with SLBI to establish the status of the Council's membership. The advice given at that time was that the appointment was at the Council's discretion. However, SLBI has now advised that the joint agreement between the Council and SLBI covering the use and maintenance of the Sumner Slipway and associated buildings requires a representative of the Council to serve on SLBI's governing body. Councillor Cox has indicated that he is available to serve in this capacity. If the Council wishes to discontinue its association with SLBI it will be necessary to vary the 1983 agreement. Recommendation: 1. That Mr Derek Anderson be appointed as the Council's representative on the Ferrymead Trust, subject to his availability. 2. That the Council appointments to the Riccarton Bush Trust be finalised. 3. That the Sumner Lifeboat Institution agreement be varied to relieve the SLBI of the requirement to arrange for a representative of the Council to serve on its governing body. 6. TURNING POINT 2000 RR 2299
Officer Responsible Author Communications and Promotions Manager Susan Selway Corporate Plan Output: Volume II Page 7.5.3
The purpose of this report is to advise on recent progress of Turning Point 2000 with reference to the proposed membership of the Executive Committee. Recommendations are made regarding the operating structure and the relationship of the project to the Council. The report also discusses the financial implications for the Christchurch City Council and makes a budget recommendation for consideration in the forthcoming Annual Planning process. 6 Cont'd
1. INTRODUCTION Turning Point 2000 is a Christchurch and Canterbury community project initiated and core-funded by the Christchurch City Council. A key objective of the project is to plan and coordinate a programme of projects, activities, and events for the year 2000. But the project offers much more than a comprehensive programme for the year 2000. The potential for the project is enormous. The Background In May 1995 a core group of community representatives who had registered interest in Project 2000 were invited to join a Steering Committee. Membership of the Steering Committee was approved by the Mayor, Councillor Derek Anderson and Councillor David Close. The Steering Committee was asked to develop a structure and strategy for the celebrations of the year. Recommendations were presented and endorsed by the Council in December 1995. In particular the Steering Committee has been responsible for establishing the following: * The geographic boundaries for Project 2000. * The period of celebration. * An identity (name) and logo for the project. * A number of major projects which could be used to encourage the involvement of all sectors of society. * A financially sensitive, formal operating structure to take over from the Steering Committee and progress the project through the next stage. * Ways of promoting public awareness. At the conclusion of this task the Christchurch City Council requested that the Steering Committee make a recommendation regarding the membership of an Executive Committee which will be responsible for carrying the project through to the year 2000. The Framework The Steering Committee also developed a framework for the project which has been endorsed by the Council. It has been agreed that the project should: * Include all of Canterbury, all sectors of society. * Foster closer relationships within the community and strengthen regional identity.
6 Cont'd
* Acknowledge and commemorate the region's heritage, and in particular
1000 years of Maori settlement
250 years of Ngai Tahu settlement
150 years of European settlement * Welcome the new millennium. (The Steering Committee recommendation is for celebrations to run through the period 31 December 1999 to 31 December 2000, which is actually the lead up to the new millennium.) * Look to the future. The full name for the project, `Turning Point 2000: Looking Back, Looking Forward' was launched in December 1995. It is designed to encapsulate the above and represent the celebration of both our Heritage and our future as a region. The Vision A vision statement created for the project centres on `encouraging the fostering of closer relationships within the community'. The Steering Committee identified the following opportunities to bring the vision to life: * The bringing together of rural and urban communities in Canterbury to strengthen regional identity. * Encouragement of all residents within the region to participate actively in events and projects celebrating the year 2000. * Acknowledgment of the Tangata Whenua and the potential to encourage all cultural groups to share their history and the richness of their cultures. * Take advantage of the Sesquicentennial of the Canterbury settlement. * Motivate all groups and organisations to be proactive in the development of events, projects and activities celebrating the year 2000. * Capitalise on opportunities from outside the region whether cultural, business, educational, sporting or other, which will benefit Christchurch and Canterbury. * Acknowledge that the youth of today will play a significant role in the future development of the Canterbury region. Turning Point 2000 will encourage, lead and coordinate community participation in preparations for the year 2000...and through this achieve the greater objective which is to unite the community and foster greater community spirit and pride in the City and region.
6 Cont'd
The Opportunity The year 2000 provides a focus for the project but Turning Point 2000 offers much more than a single year of celebrations. It is a fantastic opportunity for the Christchurch and Canterbury community for a number of reasons ... * It is anticipated that there will be a build up to the year 2000, with increasing excitement, interest and momentum as more of the community become aware of and involved in the project. * At the moment we have an advantage over most major centres in New Zealand (except for Gisborne and, more recently, Wellington) because we are ahead in planning. Christchurch and Canterbury must capitalise on this by following the initial planning through to implementation now. * Provided we can maintain our advantage and commence the next stage early, we should be able to access sponsorship funding ahead of other major New Zealand cities. The converse will be true, however, if we delay as groups and organisations in Christchurch and the South Island generally find sponsorship more difficult to generate due to competition from North Island markets. * The year 2000 will be significant for every city and region but it is of particular significance for Christchurch and Canterbury because it is such an important anniversary year. The year 2000 will have special poignancy for Cantabrians. * The city and the region are uniquely placed to offer more than millennium celebrations. Turning Point 2000 will market this and take advantage of the extra opportunities for promotion. * There is great potential to reap extensive benefits from profiling the region for tourism, the convention and incentives markets and also enhanced opportunity for economic development through trade. * Contact has already been made with Sydney 2000 and there are exciting opportunities for linkages. * Turning Point 2000 will provide a focus for the community, bringing people together to work towards common goals. * Encouraging and coordinating events which facilitate cultural exchange will foster greater appreciation and understanding amongst the peoples of the region. Such community development is invaluable. * The work done by the Steering Committee in identifying a draft programme shows that the project promises richness and diversity in activities. In addition to a select number of inspiring new projects, such as the landscaping proposal, there are a host of existing events, projects and activities that can be easily incorporated given adequate lead time.
6 Cont'd
* With early planning in the development stage it will be possible to identify opportunities to carry the momentum and benefits of the project beyond 2000. 3. STRUCTURE - EXECUTIVE COMMITTEE It is envisaged that the structure established for the second phase of the project will remain in place up to and through the year 2000. Following a request from the Council, the Steering Committee has nominated an Executive Committee (see below). The proposed membership has been selected by the Steering Committee for the skills base, the range of expertise and interests, and commitment to the project, all of which are prerequisites for managing a project of this magnitude. Membership is on a voluntary basis. The role of the Executive Committee is to develop and build on the strategic plan created by the Steering Committee. The Executive Committee will represent the interests of citizens of Christchurch and Canterbury. It will generate ideas, provide direction within agreed guidelines and generally drive the project forward. Formal meetings will take place on a monthly basis. There may be additional meetings scheduled if necessary, especially in the last stages of the build up to 2000. The Executive Committee, as proposed by the Steering Committee, has a membership of nine. It is possible that membership may change from time to time depending on the demands of the project and the availability of members. The Executive Committee must be given the power to substitute membership as required. It is important that the size of the Executive Committee is optimal, that is, sufficiently large that a range of expertise and interests can be represented, and yet small enough to be workable. Given the breadth of the project it is unlikely that a working Executive Committee will be able to include sufficient numbers to represent all interest categories. However, it is anticipated that key members of the community will be identified, called upon for advice and even invited to become involved in specific projects. There may be benefits in creating a Turning Point 2000 Trust and establishing a Trust Board. A Trust, separated from the Council, may be better positioned to bid for sponsorship and Grants. The financial benefits could be significant. A Trust Board may include membership of the proposed Executive Committee. The Executive Committee will be invited to give the formation of a Trust consideration. Should the Executive Committee decide that creating a Trust is desirable, the deeds of Trust should be sensitive to the terms of reference agreed between the Christchurch City Council and the Executive Committee, and the requirements of the Council as core funder.
6 Cont'd
It is recommended that the Executive Committee: (a) Include two Christchurch City Council representatives (b) Include a regional member, nominated by the regional Mayors, to provide a broader perspective and represent the interests and views of the Canterbury region. (c) Include a Tangata Whenua (Ngai Tahu) representative. (d) Limit its membership to ten at any time. (e) Review its membership formally on an annual basis so that every opportunity is given to facilitate positive involvement and full contribution from individual members. (f) Advise the Christchurch City Council of changes in membership. (g) Consider creating a Trust and Trust Board Steering Committee Recommendation
The Steering Committee have recommended the following people form the Executive Committee of Turning Point 2000. Mr Ian Leggat (Chairman)
Cr David Close
Mr Chris Doig
Ms Gillian Heald
Cr Ian Howell
Ms Lesley Murdoch
Sir Miles Warren
Mr Monty Daniels
A Representative of the Canterbury Region (to be nominated by the regional Mayors) This membership conforms to the structural criteria recommended by staff. 4. STAFFING AND ADMINISTRATION SUPPORT Project 2000 has leapt forward in the past six months with valuable input from the Steering Committee. The project has enormous potential and promises to be successful provided Council support is maintained. To date the unit has employed a coordinator on short term contract for the first stage of development. Now it is essential that staff and administrative support are put in place for the full period of the project so that progress can be made. 6 Cont'd
It will be necessary for the Christchurch City Council to fund staff and administrative support. This should be viewed as provision of `core funding'. Finance for major projects, events and activities will be sought separately and from external sources where possible.
Role of Staff
It will be the role of staff to advise and administer to the Executive Committee, manage the project on a day to day basis, implement ideas generated, identify sponsorship opportunities and represent the Executive Committee in making approaches for funding. Staff will provide a point of reference for the project, communicating and liaising with the community. Location Consideration has been given to two alternatives for locating staff for the project: Option one: Setting up within the Communications and
Promotions unit. Option two: Setting up externally from the Council. It is recommended that staffing and administration support is set up within the Communications and Promotions unit (option one). The benefits of setting up in-house include: * Improved communication and coordination through proximity to unit functions of relevance to the project, including the events team and the city promotion section (especially sister cities), and events marketing. * The networks already established by the Unit can be used to gain maximum exposure for promotional material. * There will be opportunities to draw from the existing expertise within the unit. * Locating Turning Point 2000 staff within the unit will also help facilitate linkages between the project and business areas such as City regalia and Christmas decorations. Importantly, there is also a financial benefit in selecting option one in that establishing an office independently of the Council would require significantly greater funding. An administration support structure already exists within the Communications and Promotions Unit and extending these resources will alleviate unnecessary additional costs of setting up an autonomous office. An in-house operation offers a more cost-efficient and effective use of resources. 6 Cont'd
5. RELATIONSHIP TO CHRISTCHURCH CITY COUNCIL AND REPORTING Essentially, if the Council is funding a Turning Point 2000 output which includes administration and staffing support then reporting to the Council against this output would be performed in the same way as for any other piece of Council business. There is, however, an important difference in the operation of this piece of Council business because the project relies very heavily on community support through the Executive Committee. For this reason it will be essential to give the Executive Committee flexibility to evolve and grow the project. Without freedom the members will feel unempowered and lack motivation and enthusiasm to drive the project forward. But it is also important, as the Christchurch City Council is core-funding the project, that the Council is satisfied with the direction the project takes, its operation and ultimately, the programme of activities that take place in the year 2000. It is recommended that Terms of Reference be created for the Executive Committee which provide guidelines for project development but allow flexibility within set parameters. The Terms of Reference should be drawn up by the Communications and Promotions Unit staff in conjunction with the Executive Committee and presented to the Council for approval. The Terms of Reference will include the key elements of the strategic plan developed by the Steering Committee and endorsed by the Council in December 1995. They will also allow the Executive Committee freedom to exercise its professional expertise. It is also recommended that the Executive Committee/project staff set annual objectives and targets. These would be reported to, and monitored by the Council. To satisfy the Christchurch City Council's commitment to accountability and to maintain the interest and involvement of the Council, it is suggested that the Turning Point 2000 staff provide a progress report to the Council on a quarterly basis. As regards financial reporting, this should be performed in line with other Council activities, that is through the annual planning process with six monthly monitoring. 6. FINANCIAL IMPLICATIONS The scope and potential for Turning Point 2000 is amazing. The resulting benefit to the Christchurch and Canterbury community is enormous. The Calendar The calendar of events, activities and projects for the year will, on the whole, be organised by community groups. In addition it is anticipated that there would be some major events that provide `highlights' throughout the year and opportunities to promote the region. These would be coordinated, with major sponsor backing, by the Turning Point 2000 personnel.
6 Cont'd
There are a number of existing annual activities and special community events and projects already being planned for the year which could be accepted as `official' Turning Point 2000 events. Funding and organisation of those community coordinated events will remain the responsibility of the initiators. The level of activity will increase dramatically as we draw close to the year 2000 and it is probably fair to say that the greater the success of the project, the more staffing and administration support will be required. However, the cost of staffing Turning Point 2000 will be minimal compared to the impact and value of an extensive network of community volunteers. To put this in perspective the Garden City Festival of Flowers is supported by a network of some 7,000 volunteers. Turning Point 2000 has the potential to be many times bigger. Raising Corporate Sponsorship The real success of the project is dependent on accessing substantial corporate funding and sponsorship early. An investment in adequate staffing and support now will pay dividends later. The next year or two are of critical importance when it comes to raising finance for major projects. It is essential that we make approaches sooner rather than later as corporate sponsors will need to allow for financing Turning Point 2000 activities in their five year financial planning. Once other major centres throughout New Zealand start planning with a vengeance competition for funding will be fierce. Adequate Staffing Will Pay Dividends Adequate staffing at this stage equates to two full time employees; one in a more senior role as Project Director and the other in a support coordination role. The Project Director and Coordinator will report to the Communications and Promotions Manager. Together they will be responsible for: * Researching and identifying opportunities for funding. * Preparing budgets. * Writing, preparing and presenting sponsorship proposals. * Development of a marketing plan including the production of promotional material and media liaison. * Development and maintenance of the calendar of events including management of the database. * Identifying opportunities for linkages. * Handling enquiries locally, nationally and internationally.
* Liaison with event organisers.
6 Cont'd
* Liaison with key groups such as CDC, CTC, the commercial sector, Sydney 2000 and other New Zealand cities. These are positions that require a high degree of expertise and skill. Creating Awareness in the Community Early is Important
It will also be necessary for the Christchurch City Council to fund the initial promotion of Turning Point 2000 throughout the region. Accessing volunteers and instigating the planning of events are dependent on first establishing awareness of the project in the community. Targeted promotion to key organisations and groups nationally and internationally will also be necessary. Core Funding The majority of events, projects and activities will be community based and organisers will be responsible for providing or accessing their own finance. Major projects will be funded separately and, provided staffing and support for the project is in place soon, sponsorship will be sourced. There is a need for the Christchurch City Council to provide core funding to cover staffing, administration, associated office costs and promotion of Turning Point 2000. Core funding of $200,000 is required for 1996/7. It is imperative that this resourcing is provided so that corporate sponsorship can be established early, community liaison can commence and progress can be made in developing the calendar for 2000. 7. BUDGET Breakdown of costs Staff salaries and office costs (telephones, admin.,
equipment etc) $145,000
Sponsorship proposals 7,500
Advertising 20,000
Research and resources 7,500
Community Information packs 8,500
Community liaison/advice 1,000
Newsletters 6,000
Corporate/School Information Kits 3,500
Executive Committee Servicing 1,000
----------
Total Core Funding Required $200,000 Annual Planning
Funding of $60,000 was provided in the 1995/96 Annual Plan. When draft budgets were being prepared for the 1996/7 Annual Plan the Communications and Promotions Unit nominated provisional line item funding of $60,000. Now that the Steering Committee has provided a strategic plan for the project and it is possible to more accurately advise costs, the budget allocation will need to be adjusted for 1996/7.
6 Cont'd
While concerns were raised by several members of the Committee regarding the level of core funding for the project, it was agreed that this was a budgetary issue, and should therefore be addressed as part of the 1996/97 Annual Plan process. Councillor O'Rourke sought clarification on the Council's motives in becoming involved in this initiative and the benefits it will produce. The Committee resolved that the Communications and Promotions Manager report to the Committee's Annual Plan meeting in March on the theme/focus and benefits of the Turning Point 2000 celebrations, together with more detailed costings. Recommendation: 1. That the Council endorse the proposed formal structure of the Executive Committee, including representation for the Christchurch City Council, a regional representative and a Tangata Whenua (Ngai Tahu) representative. 2. That the Council endorse the proposed membership of the Executive Committee as recommended by the Steering Committee. 3. That staff provide a report to the Council detailing the proposed Terms of Reference for the Executive Committee. 4. That the Council agree, in principle, to make provision for Core Funding for Turning Point 2000. 5. That the Communications and Promotions Manager report to the Committee's March Annual Plan meeting on the theme, focus and benefits of the Turning Point 2000 celebrations, together with more detailed costings.
PART B - ITEMS DEALT WITH BY THE COMMITTEE AND
REPORTED FOR INFORMATION ONLY
7. DEPUTATIONS BY APPOINTMENT Aurora Centre for the Performing Arts Mr Michael O'Regan and Mr Hugh Stevenson addressed the Committee on behalf of the Aurora Campaign Committee for the above project and presented an application for a grant of $700,000 towards the above project. The Committee resolved that the application be referred to the Grants Subcommittee for further consideration.
8. THE COUNCIL'S VISION FOR CHRISTCHURCH RR 2269 The Committee gave consideration to the Vision Statement proposed for inclusion in the Council's draft 1996/97 Annual Plan. A number of Councillors considered that the Statement in the form presented was not particularly readable and should be rewritten in a more appealing style. It was resolved that a subcommittee comprising the Chairman, Councillors Alpers, Evans, Murray and O'Rourke, together with the Director of Policy and the Media Officer be appointed to redraft the statement and report back to the Committee's March meeting.
9. SELWYN PLANTATION BOARD LIMITED:
CONSULTATION ON SALE OF SHARES RR 2297 The Director of Finance reported, updating the Committee on the public consultation process on the sale of Selwyn Plantation Board shares and recommending that a subcommittee be appointed to hear the public submissions. In view of the importance of this issue the members agreed that the whole Committee, rather than a subcommittee, should hear the public submissions. Accordingly, it was resolved that the submissions on the sale of the Selwyn Plantation Board shares be heard by the whole Committee and that the Committee report to the Council following the hearings with a recommendation on the sale or otherwise of the Council's shareholding in Selwyn Plantation Board Limited.
10. ITEMS RECEIVED The Committee received the following reports: 10.1 1995 Revaluation Impact on Rates RR 2279 The Funds Manager reported on the impacts of the 1995 property revaluations on city rates. 10.2 Strategy and Resources Recess Committee
The Strategy and Resources Recess Committee reported on action taken under delegated authority during the Christmas/New Year recess in approving three applications for grants for events scheduled for early in 1996. 10.3 Plant Replacement Programme
The Plant and Building Services Manager reported on expenditure on the plant replacement programme for the period to 31 January 1996.
11. RESOLUTION TO EXCLUDE THE PUBLIC The Committee resolved: 1. That the draft resolution to exclude the public set out on page 32 of the agenda be adopted. 2. That Mr Lindsay North of Rhodes and Co., Mr Martin Mongan, General Manager, Christchurch Tramway Limited, and Mr Roger Pierce, Executive Director, Shotover Jet Limited, be permitted to remain at the meeting after the public has been excluded to assist the Committee in its deliberations on clause 15. CONSIDERED THIS 28TH DAY OF FEBRUARY 1996
MAYOR