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142ND MEETING
OF
THE CHRISTCHURCH CITY COUNCIL
MINUTES OF A MEETING OF THE CHRISTCHURCH CITY COUNCIL HELD AT
2.00 PM ON WEDNESDAY 30 JULY 1997
| PRESENT: | The Mayor, Ms Vicki Buck (Chairperson), Councillors Oscar Alpers, Carole Anderton, Graham Berry, David Buist, David Close, Graham Condon, David Cox, Anna Crighton, Newton Dodge, Carole Evans, Morgan Fahey, Gordon Freeman, Ishwar Ganda, Pat Harrow, Ian Howell, Alister James, Lesley Keast, Charles Manning, Garry Moore, Margaret Murray, Denis O'Rourke, Gail Sheriff, Barbara Stewart and Ron Wright. |
| APOLOGIES: | Nil. |
1. TEMPORARY SUSPENSION OF STANDING ORDERS
It was resolved that Standing Order 2.19.8 relating to members speaking more than once be temporarily suspended for the duration of the present Council meeting.
2. REPORT OF THE STRATEGY AND RESOURCES ANNUAL PLAN WORKING PARTY
Councillor Close made the following statement:
"Today the Council meets to approve the latest edition of the City Council Plan. This is the culmination of almost a year of work by Community Boards, Council staff, Councillors and members of the public. A good deal has taken place since the draft plan was approved in April. The plan has been published, submissions have been received and considered, and staff have reported on various adjustments necessary as a result of information which has come to hand. Adjustments of several million dollars have been made, but the net result is an increase of only .26% above the rates figure projected in April. The recommended increase of 2.96% is 1% lower than that projected in last year's Annual Plan and will cost the average ratepayer only an additional 40 cents per week.
Both the public and the Council can feel satisfied with this plan. It provides new facilities, new services, higher standards for some existing services, better maintenance of key facilities, together with investment in energy efficiency, protection of the environment, and programmes to support children, youth and families at risk.
Above all the 1997 Council Plan provides for more systematic and comprehensive management of the city's basic assets than ever before. Included in the plan for 1997/98 and the following 19 years, is funding to maintain our roads, water supply system, sewerage system, parks and other facilities. The standards were established as a result of intensive consultation among the public, elected members, and the Council's professional officers. The final period of consultation involved the distribution of the booklet, Your City Your Choice, which gave the public the opportunity to consider the standards recommended as a result of the earlier consultation. By and large the submissions endorsed the standards that had been proposed. A few of the submissions urged the Council to spend less, a somewhat greater number urged the Council to spend more, but the great majority responded, on most items, by endorsing the status quo or the Council's minimum acceptable standard. The recently published Citizens' Survey followed the same trends. To put it very simply, the public is telling the Council that it has "got it about right". Except for a few items, there is no strong mandate for us to spend more, and only a small minority thinks we are overspending.
This leads to my next point - the need for restraint, especially in capital expenditure. Several years ago the Council very prudently adopted parameters for its debt management. The most important of these is a commitment not to spend more than 8% of our operating income on interest on our debt. To avoid breaching this parameter, the Strategy and Resources Committee has recommended to the Council a reduction of $15 million in capital expenditure over the next five years. We have a very large capital works programme over the next decade, both for the basics of roading and sewerage, and for special projects such as the new art gallery and the entertainment centre. The Council's financial strength is such that this heavy capital programme can be accommodated without stress. However, our self-imposed debt management parameters make it clear that we cannot entertain any big new projects in the next few years. This is the message which the Strategy and Resources Committee wishes to give to the Council, the Standing Committees of the Council, and the Community Boards. I have asked the Director of Finance to prepare an addition to the Council's financial policy to reflect the new situation.
I would like to thank the members of the Strategy and Resources Committee for their patience and co-operation in hearing and considering numerous submissions in the last two weeks. I would also like to thank Council staff, especially Paul Melton, Julie Sadler and Chris Kerr, for the preparation of the report for today's meeting.
I wish to table revised financial projections as a result of adjustments to expenditure on waste and depreciation. The changes do not affect the 1997/98 year, but reduce the rate requirement for subsequent years. In order to smooth the rate increases for subsequent years, I would like to move an amendment that we adjust the unspecified operating sum in accordance with the recommendation of the Financial Planner on the last line on page 24 of the report. (These adjustments have also been included in the revised projections tabled.) Subject to that amendment, it gives me pleasure to move the adoption of the report on behalf of the Strategy and Resources Committee."
Consideration was then given to the working party's report, together with the following tabled associated documents:
Schedule comparing average residential rates with the rates levied by other large municipalities in 1996/97.
Schedule of rate increases compared to the Consumer Price Index.
Schedule comparing current rate projections with those projected in the 1996 Plan for the five years 1997/98 to 2001/02.
Amended Table IX (Financial Planning Model for 1997/98 and Future Years).
Moved by Councillor Close seconded by Councillor Moore "That clause 1 of the report of the Strategy and Resources Annual Plan Working Party be adopted".
WORLD PARAPLEGIC GAMES
It was resolved that clause 10 on page 16 of the report be amended to provide that a sum of $50,000 be provided from the seeding fund to allow the Council to match the Hillary Commission's contribution of $50,000 for the World Paraplegic Games.
IMPROVEMENTS TO FORMAT OF COUNCIL PLAN
It was resolved that the Staff Project Team formed to explore opportunities for improving the format of future Annual Plans report back within four months.
SOCIAL INITIATIVES
Councillor Murray moved by way of amendment "That the provision of $1 million for additional social initiatives be deleted from the budget". The amendment was seconded by Councillor Cox and when put to the meeting was declared lost on division no 1 by 11 votes to 14, the voting being as follows:
| Against (14): | Councillors Alpers, Anderton, Close, Condon, Crighton, Evans, Freeman, Ganda, James, Keast, Manning, Moore, O'Rourke and the Mayor. |
| For (11): | Councillors Berry, Buist, Cox, Dodge, Fahey, Harrow, Howell, Murray, Sheriff, Stewart and Wright. |
Councillor Freeman moved by way of further amendment "That additional provision of $100,000 be made in 1997/98 for an anti-drug education programme for youth". The amendment was seconded by Councillor Ganda and when put to the meeting was declared carried on division no 2 by 13 votes to 9, the voting being as follows:
| For (13): | Councillors Anderton, Close, Condon, Crighton, Evans, Freeman, Ganda, James, Keast, Manning, Moore, O'Rourke and the Mayor. |
| Against (9): | Councillors Alpers, Buist, Dodge, Fahey, Harrow, Howell, Murray, Stewart and Wright. |
| Temporarily Absent (3): | Councillors Berry, Cox and Sheriff. |
Councillor Fahey moved by way of further amendment "That the Council fund up to $500,000 for additional social initiatives, provided Central Government provides a dollar for dollar subsidy for those initiatives or activities which have been identified by the Council as the responsibility of Central Government". The amendment was seconded by Councillor Wright and when put to the meeting was declared lost on division no 3 by 11 votes to 13, the voting being as follows:
| Against (13): | Councillors Alpers, Anderton, Close, Condon, Crighton, Evans, Ganda, James, Keast, Manning, Moore, O'Rourke and the Mayor. |
| For (11): | Councillors Berry, Buist, Cox, Dodge, Fahey, Harrow, Howell, Murray, Sheriff, Stewart and Wright. |
| Temporarily Absent (1): | Councillor Freeman. |
Councillor Dodge moved by way of further amendment "That the Community Services Committee only expend these amounts when contracts are signed for a ratio of a minimum of a dollar for dollar contribution from Central Government for those activities which have previously been identified by the Council as the responsibility of Central Government". The amendment was seconded by Councillor Wright and when put to the meeting was declared lost on division no 4 by 10 votes to 14, the voting being as follows:
| Against (14): | Councillors Alpers, Anderton, Close, Condon, Crighton, Evans, Freeman, Ganda, James, Keast, Manning, Moore, Sheriff and the Mayor. |
| For (10): | Councillors Berry, Buist, Cox, Dodge, Fahey, Harrow, Howell, Murray, Stewart and Wright. |
| Temporarily Absent (1): | Councillor O'Rourke. |
WESTPAC CENTRE
Adopted, subject to it being confirmed that the proposed funding was provisional only at the present time.
ADDITIONAL FUNDING FOR CONVENTION CENTRE
Also considered was the report of the Major Projects Co-ordinator regarding the need for additional funding to cover deferred and operational items at the Convention Centre.
It was resolved on the motion of Councillor Close seconded by Councillor Wright:
ENGLISH PARK GRANDSTAND
Councillor Freeman moved by way of amendment "That the possible replacement of the English Park grandstand be reconsidered for possible inclusion in the 1998/99 draft Plan". The amendment was seconded by Councillor Close and when put to the meeting was declared carried.
COWLES STADIUM
Councillor Cox moved by way of amendment "That the proposed capital provision of $10,000 be found from stadia, contingency and other departmental funds". The amendment was seconded by Councillor Wright and when put to the meeting was declared lost.
Councillor Wright moved by way of further amendment "That the provision for the operation of Cowles Stadium for the years 1998/99 to 2003/04 inclusive shown on page 3 of the schedule of changes recommended by the working party be deleted, leaving only the provision of $50,370 for 1997/98". The amendment was seconded by Councillor Evans and when put to the meeting was declared carried on division no 5 by 15 votes to 10, the voting being as follows:
| For (15): | Councillors Alpers, Berry, Buist, Cox, Dodge, Evans, Fahey, Freeman, Harrow, Howell, Murray, Sheriff, Stewart, Wright and the Mayor. |
| Against (10): | Councillors Anderton, Close, Condon, Crighton, Ganda, James, Keast, Manning, Moore and O'Rourke. |
CIVIC OFFICES: CHILDREN'S PLAY AREA
Councillor Sheriff moved by way of amendment "That the sum of $30,000 proposed to be allocated from the contingency sum for a children's play area in the Civic Offices be deleted". The amendment was seconded by Councillor Stewart and when put to the meeting was declared lost on division no 6 by 8 votes to 17, the voting being as follows:
| Against (17): | Councillors Alpers, Anderton, Close, Condon, Crighton, Dodge, Evans, Fahey, Freeman, Ganda, James, Keast, Manning, Moore, O'Rourke, Wright and the Mayor. |
| For (8): | Councillors Berry, Buist, Cox, Harrow, Howell, Murray, Sheriff and Stewart. |
TRAFFIC SAFETY PROGRAMMES OUTSIDE SCHOOLS
It was resolved that staff report to the City Services Committee on the implementation of traffic safety programmes outside schools in the 1998/99 year (the balance of the recommendation made by the Committee on this topic being deleted).
COUNCIL OWNED LAND AT TUAM STREET/STANMORE ROAD INTERSECTION
Adopted, subject to the report including the option of selling the land.
TAYLORS MISTAKE CAR PARK
Adopted, subject to the second bullet-point being amended to:
Metropolitan project (to be identified by the Community Board) $10,000
AIR POLLUTION
The Mayor moved by way of amendment "That the Council amend its anti-smog package in accordance with the following schedule:
| Current Funding | Proposed New Funding | Suggested Change in Grants | Adjust Dividends from CCHL | Current Rates Picture | Amended Rates Picture | |
| 1997/98 | 140,000 | 500,000 | +360,000 | +360,000 | 2.96 | 2.96 |
| 1998/99 | 400,000 | 500,000 | +100,000 | -360,000 | 3.19 | 3.59 |
| 1999/2000 | 670,000 | 670,000 | 4.28 | 3.89 | ||
| 2000/01 | 670,000 | 670,000 | 3.68 | 3.68 | ||
| 2001/02 | 400,000 | 80,000 | 3.60 | 3.37 | ||
| 2002/03 | 140,000 | - | 4.66 | 4.61 |
The amendment was seconded by Councillor James and when put to the meeting was declared carried. (Note: Councillor Fahey requested that his vote against the adoption of the foregoing amendment be recorded.)
Clause 33 was then adopted, incorporating the foregoing amendment.
RADIATION FROM CELL PHONE TRANSMITTERS, RADIO TRANSMITTERS AND OTHER SOURCES OF RADIATION
Adopted, subject to:
The investigation being carried out by a truly independent expert.
Advice also being sought from the National Radiation Laboratory.
(Note: Councillors Buist, Cox and Keast withdrew from this clause, and took no part in the discussion or voting thereon.)
NEW BRIGHTON PIER
Adopted, subject to the purpose of the provision of $12,000 being amended to "the promotion of the opening of the New Brighton Pier".
MARSHLAND ROAD/SHIRLEY ROAD INTERSECTION: INSTALLATION OF RIGHT-HAND TURNING LIGHTS
It was resolved that the proposal contained in recommendation 41 be referred to the City Services Committee for consideration, particularly in respect of weekend traffic.
RESTORATION OF THE ROSES CHAPEL
It was resolved that the submissions seeking funding for the restoration of the Roses Chapel be referred to the Environmental Committee with the request that funding for essential strengthening and window protection work be made available from the annual allocation from the heritage buildings fund and from funds transferred from the 1996/97 annual allocation.
FESTIVAL OF JAPAN
Councillor Dodge moved by way of amendment "That funding of $30,000 be granted for the Festival of Japan in 1997/98". The amendment was seconded by Councillor James and when put to the meeting was declared carried.
Recommendation 51(b) was adopted without amendment.
LATIN AMERICAN FESTIVAL
Adopted, subject to the words "or for other festivals" being added to the end of the recommendation.
CENTRE FOR ADVANCED ENGINEERING
Adopted, subject to the words "including earthquake strengthening" being added to recommendation 58(b).
ARTIST IN RESIDENCE SCHEME
Councillor Crighton moved by way of amendment "That the Council make a grant of $20,000 towards the Artist in Residence Scheme for 1997/98 only". The amendment was seconded by Councillor O'Rourke and when put to the meeting was declared carried.
CANTERBURY TOURISM COUNCIL
Adopted. Following an oral report by the Mayor it was resolved, further that additional funding of $30,000 be made available in 1997/98 to the Canterbury Tourism Council for a spring promotion campaign.
CANTERBURY MUSEUM
Councillor Harrow moved by way of amendment "That the ex gratia payment to the Canterbury Museum of $474,862 for the year 2003/04 be deleted". The amendment was seconded by Councillor Cox and when put to the meeting was declared lost.
(8.25 pm It was resolved that Standing Order 2.7.1 be suspended to allow the present meeting to continue until 9.15 pm.)
Councillor Murray moved by way of further amendment "That the ex gratia payment to the Museum be subject to the Museum moving to a system of charging for tourists as from and including 1998/99". The amendment was seconded by Councillor Fahey and when put to the meeting was declared carried.
(Note: Councillors Close and Manning requested that their votes against the adoption of the foregoing amendment be recorded.)
The three recommendations contained in clause 1(6) of the working party's report were then adopted, subject to incorporation of the foregoing amendment.
TRANSFER STATION CHARGES
Councillor Berry moved by way of amendment "That the increase in transfer station charges be put on hold while the Council investigates the advantages and disadvantages of letting the management contract for the operation of the transfer stations". The amendment was seconded by Councillor Freeman and when put to the meeting was declared lost.
RECREATION ADVISER AND OLYMPIC TRAINING STUDY
Councillor Stewart moved by way of amendment "That the provision of $100,000 made for these items on page 17 of the draft Plan be deleted". The amendment was seconded by Councillor Evans and when put to the meeting was declared lost.
SCHEDULE OF CARRY FORWARDS
It was resolved that the Schedule of Carry Forwards as attached to the working party's report be approved subject to the Director of Finance being authorised to vary the amounts actually carried forward for internal reporting purposes provided the total is less than the overall total.
PROPOSED APPOINTMENT OF EXTERNAL AUDITOR
Councillor Wright moved "That an external auditor be contracted to undertake an audit of Council staff and operations and report to the Strategy and Resources Committee no later than February 1998 with a report and recommendations, the source of funds for such report to be either the extra dividend from Christchurch Transport Limited or from the Art Gallery provision of $300,000, only $220,000 being required for this item". The motion was seconded by Councillor Howell and when put to the meeting was declared lost.
CAPITAL EXPENDITURE REVIEW
It was resolved that a capital expenditure review requiring a reduction of a minimum of $15M over five years be undertaken.
(The budget has been changed to reflect this $15M reduction in capital expenditure by a blanket reduction as follows:
| 1997/98 | $4M |
| 1998/99 | $4M |
| 1999/2000 | $4M |
| 2000/01 | $3M |
EFFICIENCY GAINS
It was resolved that an efficiency and effectiveness drive be carried out aimed at maximising efficiency gains, in advance of the next budget round.
ADOPTION OF WORKING PARTY'S RECOMMENDATIONS AND SCHEDULE OF COUNCIL PLAN CHANGES
It was then resolved that clause 1 of the Working Party's report be adopted, including the two recommendations contained in clause 1(7) of the report, subject to:
Incorporation of the resolutions and amendments adopted earlier in the meeting.
The rate increase in 1997/98 being limited to 3.12%.
3. UNSPECIFIED OPERATING PROVISION: PROPOSED AMENDMENT
Following consideration of clause 2 of the working party's report, it was resolved that the unspecified operating sum in years 2 and 3 be altered as follows:
| 1998/99 | 1999/2000 | 2000/01 | 2001/02 | |
| Unspecified Amount | $550,000 | 0 | $550,000 | $850,000 |
| Rate Increase | 3.31% | 4.75% | 3.83% | 3.68% |
4. NET REQUIREMENT FROM RATES
It was resolved:
5. BIDDING FOR PROJECTS
Councillor Stewart moved "That the financial planning of the Christchurch City Council cease the practice of "extra" bidding for projects after the initial budget is drawn up, and that, as in normal business practice, all such projects move into the following year and take their place in the priority list of the overall budget process". The amendment was seconded by Councillor Howell and when put to the meeting was declared lost.
6. SUPPLEMENTARY ITEM: RAWHITI GOLF COURSE AND GOLF SHOP
The Mayor referred to a report which had been tabled by the Chairman of the Parks and Recreation Committee, seeking approval to publicly notify a proposed licence agreement and management contract for the Rawhiti Golf Course and Golf Shop. The Mayor advised that as there was some urgency to resolve this issue, the report could not be held over to a subsequent meeting.
It was resolved:
7. CONCLUSION
The meeting concluded at 9.15 pm.
CONFIRMED THIS 27TH DAY OF AUGUST 1997
MAYOR